VSE Corp.

From the April 28, 1997 Washington Post

	'96 (in $ 000s)	% Change From '95
Revenue	120,087	62.7
Net Income	1,742	5.8
Rank Last Year: 74

Description:
VSE provides engineering and technical services to the Defense Department, other federal agencies and government contractors. The great majority of the company's revenue comes from federal contracts.

Business Resume: Contact Info -- 2550 Huntington Ave. Alexandria, Va. 22303 703-960-4600 Main Business -- Government services Founded -- 1959 Chairperson -- Donald M. Ervine (CEO) President -- Richard B. McFarland Employees -- 1,350 D.C.-Area Employees -- 675

Developments:
Last year VSE started work on a large Navy contract it won in 1995. Moreover, it has acquired two other companies—Energetics Inc., which advises the Energy Department on environmental issues, and software designer CMstat Corp.

Revenue rose sharply in 1996 as VSE began work on a $1 billion contract to repair Navy ships that will then be sold or leased to foreign governments. The company is the prime contractor on a team that includes several shipyards and maritime servicing companies.

But earnings also were somewhat depressed in 1996 by the expiration of a large systems engineering contract for the Navy's aviation command, and by the investment needed for VSE's booming information technology division.

The company reports that while earnings have been relatively stable in the past two years, it foresees earnings "volatility" now, for several reasons: the upfront expenses of developing commercial software, the federal government's lateness in paying "award fees" or profit on some contracts and the risks in agreeing to federal contracts with fixed financial terms.