BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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VSE (VSEC)

Thanks to old U.S. Navy ships and leaky U.S. Army tanker trucks, VSE had a very good 2005. The Alexandria (Va.) defense contractor saw big increases in revenues -- $280.1 million vs. $216 million in 2004 -- as well as in profits, which leaped 79% to $6.2 million. But the 46-year-old engineering firm has most of its eggs in one basket. Nearly half of VSE's business is refurbishing and transferring decommissioned Navy ships to foreign governments, such as Taiwan. In April, 2005, VSE inked a new five-year, $544 million contract to continue that work. Another third comes from work for the Army in Iraq and Afghanistan, coating tanker trucks with a sealant that stops leaks when the vehicles are hit by small arms fire. VSE's share price topped $50 in February, but has slumped to around $35 in May. Still, that's a nice return on a stock that fetched less than $15 a share only 30 months ago.

Company Info

2005 Rank

83

Market Value*
($ Millions)

77.2

Sales*
($ Millions)

277.5

Sales Growth
(3-yr. avg. annual)

30.7 %

Profits*
($ Millions)

6.4

Profit Growth
(3-yr. avg. annual)

107.1 %

Return on Inv. Capital (3-yr.)

15.3 %

Share Price
12-Mo. Hi/Lo

52/28

Share Price
As of 4/28/06

33

Return on Equity

21.1 %

P/E Ratio

12

No. of Employees

716

Industry Diversified Commercial & Professional Services
CURRENT
MARKET INFO

VSEC >

COMPANY WEB SITE >
Location Alexandria, Va.
Phone 703 960-4600
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

VSE Corp. provides engineering, logistics, management, and technical services to the U.S. government, other government prime contractors, nongovernment organizations, and commercial entities. The company provides the U.S. Navy with engineering, technical, and logistical support services associated with the sale, lease, or transfer of Navy ships to foreign governments, as well as offers similar services to the U.S. Coast Guard. It also offers maintenance and logistics services in support of U.S. Army equipment. In addition, VSE provides equipment refurbishment services, military vehicle protection systems, engineering and technical support for ground weapons, logistics and training services, material procurement support, and prototype development support for combat vehicles. Further, its services include ship installation, combat systems inspections, ship repair and overhaul availability planning, harpoon weapons management, ordnance alteration, and air combat logistics, as well as training services for product, process, and management optimization. Additionally, the company provides consulting services, which include program planning and analysis, research and development management services, technology assessment and performance metrics, communications and outreach, and conference planning. VSE was incorporated in 1959 and has its headquarters in Alexandria, Va.


Data provided by Capital IQ
 
Don Ervine

Don Ervine, 69

Chairman, Chief Executive Officer and President


Total Compensation*

$ 648,699

Total Options Value*

$ 2,163,204

* Fiscal Year 2005

DEGREES HELD
West Virginia Institute of Technology- Bachelor's Degree in Business Management; George Washington University- Master's Degree in International Affairs;Naval War College and the Industrial College of the Armed Forces - Other


Executive Bio

Donald Ervine joined VSE in 1983 as a program manager. From 1986 to 1988, Ervine served as the executive vice-president in charge of VSE's nationwide operations. In 1988, Ervine was appointed president and chief operating officer, a position he held until 1993, when he was appointed chairman and CEO. In addition to these duties, Ervine was reappointed president and chief operating officer of VSE in March, 2002. Ervine had a 27-year career of military service, including 24 years active duty in the U.S. Navy, where he achieved the rank of Captain. Ervine holds a bachelor's degree in business management from West Virginia Institute of Technology and a master's degree in international affairs from George Washington University. He is also a graduate of the Naval War College and the Industrial College of the Armed Forces.


Management Team

Key Executives

Don Ervine; James Reed; Thomas G. Dacus; James M. Knowlton; Craig S. Weber; Thomas R. Loftus

Board Directors

James F. Lafond; Clifford M. Kendall; Don Ervine; Bonnie K. Wachtel; Calvin Scott Koonce; David M. Osnos; Jimmy D. Ross


Executive Data provided by Capital IQ