DELAWARE
|
54-0649263
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
6348 Walker Lane
|
|
|
|
|
Alexandria, Virginia
|
|
22310
|
|
www.vsecorp.com
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
(Webpage)
|
Title of each class
|
Name of each exchange on which registered
|
Common Stock, par value $.05 per share
|
The NASDAQ Global Select Market
|
TABLE OF CONTENTS
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Page
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ITEM 1
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ITEM 1A
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ITEM 1B
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ITEM 2
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ITEM 3
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ITEM 4
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ITEM 4(a)
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ITEM 5
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ITEM 6
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ITEM 7
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ITEM 7A
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ITEM 8
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ITEM 9
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ITEM 9A
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ITEM 9B
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ITEM 10
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ITEM 11
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ITEM 12
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ITEM 13
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ITEM 14
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ITEM 15
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Revenues by Customer
(dollars in thousands)
Years ended December 31,
|
||||||||||||||||
Customer
|
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||
USPS
|
|
$
|
175,339
|
|
|
25.1
|
|
$
|
180,205
|
|
|
23.7
|
|
$
|
181,215
|
|
|
26.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Navy
|
|
160,952
|
|
|
23.1
|
|
206,644
|
|
|
27.2
|
|
190,155
|
|
|
27.5
|
|||
U.S. Army
|
|
156,519
|
|
|
22.5
|
|
188,462
|
|
|
24.8
|
|
139,764
|
|
|
20.2
|
|||
U.S. Air Force
|
|
17,023
|
|
|
2.4
|
|
7,123
|
|
|
0.9
|
|
3,482
|
|
|
0.5
|
|||
Total - DoD
|
|
334,494
|
|
|
48.0
|
|
402,229
|
|
|
52.9
|
|
333,401
|
|
|
48.2
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial Aviation
|
|
135,864
|
|
|
19.5
|
|
126,960
|
|
|
16.7
|
|
131,067
|
|
|
19.0
|
|||
Other Commercial
|
|
14,742
|
|
|
2.1
|
|
12,498
|
|
|
1.7
|
|
10,721
|
|
|
1.5
|
|||
Total - Commercial
|
|
150,606
|
|
|
21.6
|
|
139,458
|
|
|
18.4
|
|
141,788
|
|
|
20.5
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other Government
|
|
36,779
|
|
|
5.3
|
|
38,221
|
|
|
5.0
|
|
35,386
|
|
|
5.1
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
697,218
|
|
|
100.0
|
|
$
|
760,113
|
|
|
100.0
|
|
$
|
691,790
|
|
|
100.0
|
Name
|
|
Age
|
|
Position with Registrant
|
Joseph R. Brown
|
|
62
|
|
President, Federal Services Group
|
Maurice A. Gauthier
|
|
71
|
|
Director, Chief Executive Officer, President and Chief Operating Officer
|
Paul W. Goffredi
|
|
61
|
|
President, VSE's subsidiary VSE Aviation, Inc.
|
Thomas M. Kiernan
|
|
51
|
|
Vice President, General Counsel and Secretary
|
Thomas R. Loftus
|
|
63
|
|
Executive Vice President and Chief Financial Officer
|
Chad Wheeler
|
|
44
|
|
President, VSE's subsidiary Wheeler Bros., Inc.
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
VSE
|
100
|
|
138.18
|
|
131.29
|
|
165.19
|
|
207.24
|
|
128.90
|
NASDAQ Composite
|
100
|
|
114.62
|
|
122.81
|
|
133.19
|
|
172.11
|
|
165.84
|
Peer Group
|
100
|
|
103.89
|
|
114.25
|
|
125.04
|
|
138.74
|
|
142.69
|
|
Years ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
697,218
|
|
|
$
|
760,113
|
|
|
$
|
691,790
|
|
|
$
|
533,982
|
|
|
$
|
424,071
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
35,080
|
|
|
$
|
39,096
|
|
|
$
|
26,793
|
|
|
$
|
24,918
|
|
|
$
|
20,489
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,124
|
)
|
|||||
Net income
(1)
|
$
|
35,080
|
|
|
$
|
39,096
|
|
|
$
|
26,793
|
|
|
$
|
24,918
|
|
|
$
|
19,365
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
3.23
|
|
|
$
|
3.61
|
|
|
$
|
2.48
|
|
|
$
|
2.32
|
|
|
$
|
1.91
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
|||||
Net income
(1)
|
$
|
3.23
|
|
|
$
|
3.61
|
|
|
$
|
2.48
|
|
|
$
|
2.32
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
3.21
|
|
|
$
|
3.60
|
|
|
$
|
2.47
|
|
|
$
|
2.31
|
|
|
$
|
1.91
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
|||||
Net income
(1)
|
$
|
3.21
|
|
|
$
|
3.60
|
|
|
$
|
2.47
|
|
|
$
|
2.31
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends per common share
|
$
|
0.310
|
|
|
$
|
0.270
|
|
|
$
|
0.235
|
|
|
$
|
0.215
|
|
|
$
|
0.195
|
|
|
As of December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Working capital
|
$
|
176,342
|
|
|
$
|
134,563
|
|
|
$
|
110,021
|
|
|
$
|
100,780
|
|
|
$
|
33,037
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
638,828
|
|
|
$
|
629,013
|
|
|
$
|
661,839
|
|
|
$
|
617,354
|
|
|
$
|
353,430
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
$
|
151,133
|
|
|
$
|
165,614
|
|
|
$
|
193,621
|
|
|
$
|
215,243
|
|
|
$
|
23,483
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term lease obligations
|
$
|
18,913
|
|
|
$
|
20,581
|
|
|
$
|
21,959
|
|
|
$
|
23,251
|
|
|
$
|
24,584
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
$
|
328,395
|
|
|
$
|
293,095
|
|
|
$
|
255,194
|
|
|
$
|
229,309
|
|
|
$
|
205,489
|
|
|
|
(in thousands)
Years ended December 31,
|
||||||||||||||||
Source of Revenues
|
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||
USPS
|
|
$
|
175,339
|
|
|
25
|
|
$
|
180,205
|
|
|
24
|
|
$
|
181,215
|
|
|
26
|
FMS Program
*
|
|
147,875
|
|
|
21
|
|
185,556
|
|
|
24
|
|
169,754
|
|
|
25
|
|||
Other
|
|
374,004
|
|
|
54
|
|
394,352
|
|
|
52
|
|
340,821
|
|
|
49
|
|||
Total Revenues
|
|
$
|
697,218
|
|
|
100
|
|
$
|
760,113
|
|
|
100
|
|
$
|
691,790
|
|
|
100
|
|
2018
|
|
2017
|
|
2016
|
||||||
Bookings
|
$
|
321
|
|
|
$
|
430
|
|
|
$
|
458
|
|
Revenues
|
$
|
337
|
|
|
$
|
411
|
|
|
$
|
353
|
|
Funded Backlog
|
$
|
290
|
|
|
$
|
324
|
|
|
$
|
322
|
|
|
Revenues
(in thousands)
Years ended December 31,
|
||||||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||
Supply Chain Management Group
|
$
|
214,809
|
|
|
30.8
|
|
$
|
214,542
|
|
|
28.2
|
|
$
|
205,475
|
|
|
29.7
|
Aviation Group
|
145,423
|
|
|
20.9
|
|
134,809
|
|
|
17.7
|
|
133,466
|
|
|
19.3
|
|||
Federal Services Group
|
336,986
|
|
|
48.3
|
|
410,762
|
|
|
54.1
|
|
352,849
|
|
|
51.0
|
|||
|
$
|
697,218
|
|
|
100.0
|
|
$
|
760,113
|
|
|
100.0
|
|
$
|
691,790
|
|
|
100.0
|
|
Consolidated Statements of Income
(in thousands)
Years ended December 31,
|
|||||||||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|||||||||
Revenues
|
$
|
697,218
|
|
|
100.0
|
|
|
$
|
760,113
|
|
|
100.0
|
|
|
$
|
691,790
|
|
|
100.0
|
|
Costs and operating expenses
|
644,688
|
|
|
92.4
|
|
|
705,788
|
|
|
92.9
|
|
|
640,261
|
|
|
92.6
|
|
|||
Gain on sale of contract
|
1,700
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Operating income
|
54,230
|
|
|
7.8
|
|
|
54,325
|
|
|
7.1
|
|
|
51,529
|
|
|
7.4
|
|
|||
Interest expense, net
|
8,982
|
|
|
1.3
|
|
|
9,240
|
|
|
1.2
|
|
|
9,855
|
|
|
1.4
|
|
|||
Income before income taxes
|
45,248
|
|
|
6.5
|
|
|
45,085
|
|
|
5.9
|
|
|
41,674
|
|
|
6.0
|
|
|||
Provision for income taxes
|
10,168
|
|
|
1.5
|
|
|
5,989
|
|
|
0.8
|
|
|
14,881
|
|
|
2.1
|
|
|||
Net income
|
$
|
35,080
|
|
|
5.0
|
|
|
$
|
39,096
|
|
|
5.1
|
|
|
$
|
26,793
|
|
|
3.9
|
|
|
Years ended December 31,
|
|||||||||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|||||||||
Revenues
|
$
|
214,809
|
|
|
100.0
|
|
|
$
|
214,542
|
|
|
100.0
|
|
|
$
|
205,475
|
|
|
100.0
|
|
Costs and operating expenses
|
184,183
|
|
|
85.7
|
|
|
180,788
|
|
|
84.3
|
|
|
170,843
|
|
|
83.1
|
|
|||
Operating income
|
$
|
30,626
|
|
|
14.3
|
|
|
$
|
33,754
|
|
|
15.7
|
|
|
34,632
|
|
|
16.9
|
|
|
Years ended December 31,
|
||||||||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||||
Revenues
|
$
|
145,423
|
|
|
100.0
|
|
|
134,809
|
|
|
100.0
|
|
|
133,466
|
|
|
100.0
|
|
|
Costs and operating expenses
|
134,347
|
|
|
92.4
|
|
|
125,114
|
|
|
92.8
|
|
|
120,643
|
|
|
90.4
|
|
||
Operating income
|
$
|
11,076
|
|
|
7.6
|
|
|
$
|
9,695
|
|
|
7.2
|
|
|
12,823
|
|
|
9.6
|
|
|
Years ended December 31,
|
|||||||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|||||||
Revenues
|
$
|
336,986
|
|
|
100.0
|
|
|
410,762
|
|
|
100.0
|
|
|
352,849
|
|
|
100.0
|
|
Costs and operating expenses
|
322,889
|
|
|
95.8
|
|
|
397,343
|
|
|
96.7
|
|
|
345,053
|
|
|
97.8
|
|
|
Gain on sale of contract
|
1,700
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Operating income
|
$
|
15,797
|
|
|
4.7
|
|
|
13,419
|
|
|
3.3
|
|
|
7,796
|
|
|
2.2
|
|
|
Maximum Ratio
|
Actual Ratio
|
Total Funded Debt/EBITDA Ratio
|
3.00 to 1
|
1.89 to 1
|
|
Minimum Ratio
|
Actual Ratio
|
Fixed Charge Coverage Ratio
|
1.20 to 1
|
3.78 to 1
|
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
4-5 years
|
|
After 5 years
|
||||||||||
Bank loan debt
|
|
$
|
162,734
|
|
|
$
|
10,000
|
|
|
$
|
26,250
|
|
|
$
|
126,484
|
|
|
$
|
—
|
|
Operating leases, net of non-cancelable sublease income
|
|
7,530
|
|
|
2,527
|
|
|
2,749
|
|
|
2,087
|
|
|
167
|
|
|||||
Corporate headquarters lease, net of non-cancelable sublease income
|
|
40,527
|
|
|
4,080
|
|
|
9,284
|
|
|
9,775
|
|
|
17,388
|
|
|||||
Purchase obligations
|
|
162
|
|
|
155
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
210,953
|
|
|
$
|
16,762
|
|
|
$
|
38,290
|
|
|
$
|
138,346
|
|
|
$
|
17,555
|
|
Index to Financial Statements
|
|
|
|
|
Page
|
|
|
Tysons, Virginia
|
|
March 6, 2019
|
|
|
As of December 31,
|
||||||
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
162
|
|
|
$
|
624
|
|
Receivables, net
|
60,004
|
|
|
55,760
|
|
||
Unbilled receivables, net
|
41,255
|
|
|
42,577
|
|
||
Inventories, net
|
166,392
|
|
|
132,591
|
|
||
Other current assets
|
13,407
|
|
|
16,988
|
|
||
Total current assets
|
281,220
|
|
|
248,540
|
|
||
|
|
|
|
||||
Property and equipment, net
|
49,606
|
|
|
55,146
|
|
||
Intangible assets, net
|
94,892
|
|
|
110,909
|
|
||
Goodwill
|
198,622
|
|
|
198,622
|
|
||
Other assets
|
14,488
|
|
|
15,796
|
|
||
Total assets
|
$
|
638,828
|
|
|
$
|
629,013
|
|
|
|
|
|
||||
Liabilities and Stockholders' equity
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Current portion of long-term debt
|
$
|
9,466
|
|
|
$
|
6,960
|
|
Accounts payable
|
57,408
|
|
|
66,015
|
|
||
Accrued expenses and other current liabilities
|
37,133
|
|
|
40,243
|
|
||
Dividends payable
|
871
|
|
|
759
|
|
||
Total current liabilities
|
104,878
|
|
|
113,977
|
|
||
|
|
|
|
||||
Long-term debt, less current portion
|
151,133
|
|
|
165,614
|
|
||
Deferred compensation
|
17,027
|
|
|
16,323
|
|
||
Long-term lease obligations, less current portion
|
18,913
|
|
|
20,581
|
|
||
Deferred tax liabilities
|
18,482
|
|
|
19,423
|
|
||
Total liabilities
|
310,433
|
|
|
335,918
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
|
|
||
Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 10,886,036 and 10,838,747 respectively
|
544
|
|
|
542
|
|
||
Additional paid-in capital
|
26,632
|
|
|
24,470
|
|
||
Retained earnings
|
301,073
|
|
|
267,902
|
|
||
Accumulated other comprehensive income
|
146
|
|
|
181
|
|
||
Total stockholders' equity
|
328,395
|
|
|
293,095
|
|
||
Total liabilities and stockholders' equity
|
$
|
638,828
|
|
|
$
|
629,013
|
|
|
For the years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Products
|
$
|
360,505
|
|
|
$
|
350,129
|
|
|
$
|
341,776
|
|
Services
|
336,713
|
|
|
409,984
|
|
|
350,014
|
|
|||
Total revenues
|
697,218
|
|
|
760,113
|
|
|
691,790
|
|
|||
|
|
|
|
|
|
||||||
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|||
Products
|
303,881
|
|
|
291,769
|
|
|
279,629
|
|
|||
Services
|
321,076
|
|
|
395,573
|
|
|
337,956
|
|
|||
Selling, general and administrative expenses
|
3,714
|
|
|
2,429
|
|
|
6,609
|
|
|||
Amortization of intangible assets
|
16,017
|
|
|
16,017
|
|
|
16,067
|
|
|||
Total costs and operating expenses
|
644,688
|
|
|
705,788
|
|
|
640,261
|
|
|||
|
|
|
|
|
|
||||||
Gain on sale of contract
|
1,700
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
54,230
|
|
|
54,325
|
|
|
51,529
|
|
|||
|
|
|
|
|
|
||||||
Interest expense, net
|
8,982
|
|
|
9,240
|
|
|
9,855
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
45,248
|
|
|
45,085
|
|
|
41,674
|
|
|||
|
|
|
|
|
|
||||||
Provision for income taxes
|
10,168
|
|
|
5,989
|
|
|
14,881
|
|
|||
|
|
|
|
|
|
||||||
Net income
|
$
|
35,080
|
|
|
$
|
39,096
|
|
|
$
|
26,793
|
|
|
|
|
|
|
|
||||||
Basic earnings per share:
|
$
|
3.23
|
|
|
$
|
3.61
|
|
|
$
|
2.48
|
|
|
|
|
|
|
|
||||||
Basic weighted average shares outstanding
|
10,876,201
|
|
|
10,834,562
|
|
|
10,793,723
|
|
|||
|
|
|
|
|
|
||||||
Diluted earnings per share:
|
$
|
3.21
|
|
|
$
|
3.60
|
|
|
$
|
2.47
|
|
|
|
|
|
|
|
||||||
Diluted weighted average shares outstanding
|
10,936,057
|
|
|
10,867,834
|
|
|
10,828,152
|
|
|
For the years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
35,080
|
|
|
$
|
39,096
|
|
|
$
|
26,793
|
|
Change in fair value of interest rate swap agreements, net of tax
|
(35
|
)
|
|
136
|
|
|
120
|
|
|||
Other comprehensive income (loss), net of tax
|
(35
|
)
|
|
136
|
|
|
120
|
|
|||
Comprehensive income
|
$
|
35,045
|
|
|
$
|
39,232
|
|
|
$
|
26,913
|
|
|
|
|
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Stockholders'
Equity
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2015
|
10,751
|
|
|
$
|
538
|
|
|
$
|
21,368
|
|
|
$
|
207,478
|
|
|
$
|
(75
|
)
|
|
$
|
229,309
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
26,793
|
|
|
—
|
|
|
26,793
|
|
|||||
Stock-based compensation
|
48
|
|
|
2
|
|
|
1,508
|
|
|
—
|
|
|
—
|
|
|
1,510
|
|
|||||
Change in fair value of interest rate swap agreements, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
|||||
Dividends declared ($0.235 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,538
|
)
|
|
—
|
|
|
(2,538
|
)
|
|||||
Balance at December 31, 2016
|
10,799
|
|
|
540
|
|
|
22,876
|
|
|
231,733
|
|
|
45
|
|
|
255,194
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
39,096
|
|
|
—
|
|
|
39,096
|
|
|||||
Stock-based compensation
|
40
|
|
|
2
|
|
|
1,594
|
|
|
—
|
|
|
—
|
|
|
1,596
|
|
|||||
Change in fair value of interest rate swap agreements, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
136
|
|
|||||
Dividends declared ($0.27 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,927
|
)
|
|
—
|
|
|
(2,927
|
)
|
|||||
Balance at December 31, 2017
|
10,839
|
|
|
542
|
|
|
24,470
|
|
|
267,902
|
|
|
181
|
|
|
293,095
|
|
|||||
Cumulative effect of adoption of ASU 2014-09, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
1,465
|
|
|
—
|
|
|
1,465
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
35,080
|
|
|
—
|
|
|
35,080
|
|
|||||
Stock-based compensation
|
47
|
|
|
2
|
|
|
2,162
|
|
|
—
|
|
|
—
|
|
|
2,164
|
|
|||||
Change in fair value of interest rate swap agreements, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
(35
|
)
|
|||||
Dividends declared ($0.31 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,374
|
)
|
|
—
|
|
|
(3,374
|
)
|
|||||
Balance at December 31, 2018
|
10,886
|
|
|
$
|
544
|
|
|
$
|
26,632
|
|
|
$
|
301,073
|
|
|
$
|
146
|
|
|
$
|
328,395
|
|
|
For the years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
35,080
|
|
|
$
|
39,096
|
|
|
$
|
26,793
|
|
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
25,224
|
|
|
25,882
|
|
|
26,046
|
|
|||
Deferred taxes
|
(1,371
|
)
|
|
(10,534
|
)
|
|
(1,146
|
)
|
|||
Stock-based compensation
|
3,027
|
|
|
3,068
|
|
|
2,109
|
|
|||
Gain on sale of contract
|
(1,700
|
)
|
|
—
|
|
|
—
|
|
|||
Earn-out obligation adjustment
|
—
|
|
|
—
|
|
|
(1,329
|
)
|
|||
Changes in operating assets and liabilities, net of impact of acquisitions:
|
|
|
|
|
|
|
|
|
|||
Receivables, net
|
(3,754
|
)
|
|
(91
|
)
|
|
(12,166
|
)
|
|||
Unbilled receivables, net
|
4,706
|
|
|
2,972
|
|
|
(10,581
|
)
|
|||
Inventories, net
|
(35,558
|
)
|
|
3,749
|
|
|
(27,217
|
)
|
|||
Other current assets and noncurrent assets
|
4,789
|
|
|
3,681
|
|
|
(13,020
|
)
|
|||
Accounts payable and deferred compensation
|
(7,405
|
)
|
|
(23,587
|
)
|
|
54,743
|
|
|||
Accrued expenses and other current liabilities
|
(2,515
|
)
|
|
7,562
|
|
|
4,253
|
|
|||
Long-term lease obligations
|
(1,668
|
)
|
|
(1,378
|
)
|
|
(1,292
|
)
|
|||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
18,855
|
|
|
50,420
|
|
|
47,193
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Purchases of property and equipment
|
(3,117
|
)
|
|
(3,743
|
)
|
|
(6,546
|
)
|
|||
Proceeds from the sale of property and equipment
|
122
|
|
|
732
|
|
|
143
|
|
|||
Proceeds from the sale of contract
|
1,700
|
|
|
—
|
|
|
—
|
|
|||
Cash paid for acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(63
|
)
|
|||
|
|
|
|
|
|
||||||
Net cash used in investing activities
|
(1,295
|
)
|
|
(3,011
|
)
|
|
(6,466
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Borrowings on loan agreement
|
539,471
|
|
|
348,675
|
|
|
321,630
|
|
|||
Repayments on loan agreement
|
(550,436
|
)
|
|
(391,285
|
)
|
|
(340,046
|
)
|
|||
Earn-out obligation payments
|
—
|
|
|
—
|
|
|
(18,515
|
)
|
|||
Payment of debt financing costs
|
(1,702
|
)
|
|
—
|
|
|
—
|
|
|||
Payments on financing lease obligations
|
(1,452
|
)
|
|
(1,287
|
)
|
|
(1,128
|
)
|
|||
Payment of taxes for equity transactions
|
(641
|
)
|
|
(500
|
)
|
|
(499
|
)
|
|||
Dividends paid
|
(3,262
|
)
|
|
(2,816
|
)
|
|
(2,481
|
)
|
|||
|
|
|
|
|
|
||||||
Net cash used in by financing activities
|
(18,022
|
)
|
|
(47,213
|
)
|
|
(41,039
|
)
|
|||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(462
|
)
|
|
196
|
|
|
(312
|
)
|
|||
Cash and cash equivalents at beginning of year
|
624
|
|
|
428
|
|
|
740
|
|
|||
Cash and cash equivalents at end of year
|
$
|
162
|
|
|
$
|
624
|
|
|
$
|
428
|
|
Supplemental cash flow disclosures:
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Cash paid for:
|
|
|
|
|
|
||||||
Interest
|
$
|
7,523
|
|
|
$
|
7,606
|
|
|
$
|
8,230
|
|
Income taxes
|
$
|
9,534
|
|
|
$
|
16,346
|
|
|
$
|
18,886
|
|
|
|
Balance at
|
|
Adjustment for
|
|
Adjusted balance at
|
||||||
|
|
December 31, 2017
|
|
ASC 606
|
|
January 1, 2018
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Receivables, net
|
|
$
|
55,760
|
|
|
$
|
490
|
|
|
$
|
56,250
|
|
Unbilled receivables, net
|
|
$
|
42,577
|
|
|
$
|
3,384
|
|
|
$
|
45,961
|
|
Inventories, net
|
|
$
|
132,591
|
|
|
$
|
(1,757
|
)
|
|
$
|
130,834
|
|
|
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
66,015
|
|
|
$
|
(498
|
)
|
|
$
|
65,517
|
|
Accrued expenses and other current liabilities
|
|
$
|
40,243
|
|
|
$
|
655
|
|
|
$
|
40,898
|
|
Deferred tax liabilities
|
|
$
|
19,423
|
|
|
$
|
495
|
|
|
$
|
19,918
|
|
|
|
|
|
|
|
|
||||||
Stockholders’ equity:
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
$
|
267,902
|
|
|
$
|
1,465
|
|
|
$
|
269,367
|
|
|
|
As Reported
|
|
Without Adoption of ASC 606
|
||||
Assets:
|
|
|
|
|
||||
Unbilled receivables, net
|
|
$
|
41,255
|
|
|
$
|
36,451
|
|
Inventories, net
|
|
$
|
166,392
|
|
|
$
|
169,673
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Accrued expenses and other current liabilities
|
|
$
|
37,133
|
|
|
$
|
37,133
|
|
Deferred tax liabilities
|
|
$
|
18,482
|
|
|
$
|
18,097
|
|
|
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
||||
Retained earnings
|
|
$
|
301,073
|
|
|
$
|
299,936
|
|
|
|
As Reported
|
|
Without Adoption of ASC 606
|
||||
Revenues:
|
|
|
|
|
||||
Products
|
|
$
|
360,505
|
|
|
$
|
358,496
|
|
Services
|
|
$
|
336,713
|
|
|
$
|
337,635
|
|
|
|
|
|
|
||||
Costs and operating expenses:
|
|
|
|
|
||||
Products
|
|
$
|
303,881
|
|
|
$
|
302,356
|
|
Services
|
|
$
|
321,076
|
|
|
$
|
321,076
|
|
|
|
|
|
|
||||
Provision for income taxes
|
|
$
|
10,168
|
|
|
$
|
10,281
|
|
|
|
|
|
|
||||
Net income
|
|
$
|
35,080
|
|
|
$
|
35,406
|
|
|
|
As Reported
|
|
Without Adoption of ASC 606
|
||
Net income
|
|
35,080
|
|
|
35,406
|
|
Deferred taxes
|
|
(1,371
|
)
|
|
(1,260
|
)
|
Receivables,net
|
|
(3,754
|
)
|
|
(4,244
|
)
|
Unbilled receivables, net
|
|
4,706
|
|
|
6,126
|
|
Inventories, net
|
|
(35,558
|
)
|
|
(37,082
|
)
|
Accounts payable and deferred compensation
|
|
(7,405
|
)
|
|
(7,903
|
)
|
Accrued expenses and other current liabilities
|
|
(2,515
|
)
|
|
(1,860
|
)
|
Net cash provided by operating activities
|
|
18,855
|
|
|
18,855
|
|
|
Years Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Basic weighted average common shares outstanding
|
10,876,201
|
|
|
10,834,562
|
|
|
10,793,723
|
|
Effect of dilutive shares
|
59,856
|
|
|
33,272
|
|
|
34,429
|
|
Diluted weighted average common shares outstanding
|
10,936,057
|
|
|
10,867,834
|
|
|
10,828,152
|
|
Customer
|
|
Supply Chain Management
|
|
Aviation
|
|
Federal Services
|
|
Total
|
||||||||
USPS
|
|
$
|
175,339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
175,339
|
|
DoD
|
|
24,280
|
|
|
7,387
|
|
|
302,827
|
|
|
334,494
|
|
||||
Commercial
|
|
14,329
|
|
|
135,864
|
|
|
413
|
|
|
150,606
|
|
||||
Other government
|
|
861
|
|
|
2,172
|
|
|
33,746
|
|
|
36,779
|
|
||||
|
|
$
|
214,809
|
|
|
$
|
145,423
|
|
|
$
|
336,986
|
|
|
$
|
697,218
|
|
|
2018
|
|
2017
|
||||
Receivables, net
|
$
|
60,004
|
|
|
$
|
55,760
|
|
Unbilled receivables, net
|
41,255
|
|
|
42,577
|
|
||
|
$
|
101,259
|
|
|
$
|
98,337
|
|
|
2018
|
|
2017
|
||||
Buildings and building improvements
|
$
|
53,121
|
|
|
$
|
53,049
|
|
Computer equipment
|
26,489
|
|
|
27,775
|
|
||
Furniture, fixtures, equipment and other
|
32,991
|
|
|
30,704
|
|
||
Leasehold improvements
|
600
|
|
|
545
|
|
||
Land and land improvements
|
4,551
|
|
|
4,462
|
|
||
|
117,752
|
|
|
116,535
|
|
||
Less accumulated depreciation and amortization
|
(68,146
|
)
|
|
(61,389
|
)
|
||
Total property and equipment, net
|
$
|
49,606
|
|
|
$
|
55,146
|
|
|
Supply Chain Management
|
|
Federal Services
|
|
Aviation
|
|
Total
|
||||||||
Balance as of December 31, 2016
|
$
|
63,190
|
|
|
$
|
30,883
|
|
|
$
|
104,549
|
|
|
$
|
198,622
|
|
Increase from acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance as of December 31, 2017
|
$
|
63,190
|
|
|
$
|
30,883
|
|
|
$
|
104,549
|
|
|
$
|
198,622
|
|
Increase from acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance as of December 31, 2018
|
$
|
63,190
|
|
|
$
|
30,883
|
|
|
$
|
104,549
|
|
|
$
|
198,622
|
|
|
Cost
|
|
Accumulated Amortization
|
|
Accumulated Impairment Loss
|
|
Net Intangible Assets
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Contract and customer-related
|
$
|
173,094
|
|
|
$
|
(86,076
|
)
|
|
$
|
(1,025
|
)
|
|
$
|
85,993
|
|
Acquired technologies
|
12,400
|
|
|
(8,533
|
)
|
|
—
|
|
|
3,867
|
|
||||
Trade names
|
16,670
|
|
|
(11,638
|
)
|
|
—
|
|
|
5,032
|
|
||||
Total
|
$
|
202,164
|
|
|
$
|
(106,247
|
)
|
|
$
|
(1,025
|
)
|
|
$
|
94,892
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Contract and customer-related
|
$
|
173,094
|
|
|
$
|
(72,937
|
)
|
|
$
|
(1,025
|
)
|
|
$
|
99,132
|
|
Acquired technologies
|
12,400
|
|
|
(7,406
|
)
|
|
—
|
|
|
4,994
|
|
||||
Trade names
|
16,670
|
|
|
(9,887
|
)
|
|
—
|
|
|
6,783
|
|
||||
Total
|
$
|
202,164
|
|
|
$
|
(90,230
|
)
|
|
$
|
(1,025
|
)
|
|
$
|
110,909
|
|
|
Amortization
|
||
2019
|
$
|
15,953
|
|
2020
|
15,362
|
|
|
2021
|
14,998
|
|
|
2022
|
13,252
|
|
|
2023
|
9,252
|
|
|
Thereafter
|
26,075
|
|
|
Total
|
$
|
94,892
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Bank credit facility - term loan
|
$
|
80,800
|
|
|
$
|
94,375
|
|
Bank credit facility - revolver loans
|
81,934
|
|
|
79,324
|
|
||
Principal amount of long-term debt
|
162,734
|
|
|
173,699
|
|
||
Less debt issuance costs
|
(2,135
|
)
|
|
(1,125
|
)
|
||
Total long-term debt
|
160,599
|
|
|
172,574
|
|
||
Less current portion
|
(9,466
|
)
|
|
(6,960
|
)
|
||
Long-term debt, net of current portion
|
$
|
151,133
|
|
|
$
|
165,614
|
|
Year ending December 31,
|
|
|
||
2019
|
|
$
|
10,000
|
|
2020
|
|
11,875
|
|
|
2021
|
|
14,375
|
|
|
2022
|
|
15,000
|
|
|
2023
|
|
29,550
|
|
|
Total
|
|
$
|
80,800
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Employees
|
$
|
2,332
|
|
|
$
|
2,416
|
|
|
$
|
1,555
|
|
Non-employee Directors
|
553
|
|
|
642
|
|
|
544
|
|
|||
Total
|
$
|
2,885
|
|
|
$
|
3,058
|
|
|
$
|
2,099
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Stock-based compensation included in costs and operating expenses
|
$
|
3,027
|
|
|
$
|
3,068
|
|
|
$
|
2,109
|
|
Income tax benefit recognized for stock-based compensation
|
(755
|
)
|
|
(1,180
|
)
|
|
(811
|
)
|
|||
Stock-based compensation expense, net of income tax benefit
|
$
|
2,272
|
|
|
$
|
1,888
|
|
|
$
|
1,298
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current
|
|
|
|
|
|
||||||
Federal
|
$
|
9,667
|
|
|
$
|
14,149
|
|
|
$
|
13,648
|
|
State
|
1,758
|
|
|
2,511
|
|
|
2,379
|
|
|||
Foreign
|
140
|
|
|
—
|
|
|
—
|
|
|||
|
11,565
|
|
|
16,660
|
|
|
16,027
|
|
|||
Deferred
|
|
|
|
|
|
|
|
|
|||
Federal
|
(1,114
|
)
|
|
(10,645
|
)
|
|
(983
|
)
|
|||
State
|
(347
|
)
|
|
110
|
|
|
(163
|
)
|
|||
Foreign
|
64
|
|
|
(136
|
)
|
|
—
|
|
|||
|
(1,397
|
)
|
|
(10,671
|
)
|
|
(1,146
|
)
|
|||
Provision for income taxes
|
$
|
10,168
|
|
|
$
|
5,989
|
|
|
$
|
14,881
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Tax at statutory federal income tax rate
|
$
|
9,502
|
|
|
$
|
15,780
|
|
|
$
|
14,586
|
|
Increases (decreases) in tax resulting from:
|
|
|
|
|
|
|
|
|
|||
State taxes, net of federal tax benefit
|
1,861
|
|
|
1,732
|
|
|
1,599
|
|
|||
Permanent differences, net
|
367
|
|
|
(275
|
)
|
|
(545
|
)
|
|||
Impact of Tax Act
|
(795
|
)
|
|
(10,556
|
)
|
|
—
|
|
|||
Other provision adjustments
|
(767
|
)
|
|
(692
|
)
|
|
(759
|
)
|
|||
Provision for income taxes
|
$
|
10,168
|
|
|
$
|
5,989
|
|
|
$
|
14,881
|
|
|
2018
|
|
2017
|
||||
Gross deferred tax assets
|
|
|
|
||||
Deferred compensation and accrued paid leave
|
$
|
5,794
|
|
|
$
|
5,594
|
|
Accrued expenses
|
1,310
|
|
|
1,013
|
|
||
Stock-based compensation
|
819
|
|
|
772
|
|
||
Reserve for contract disallowances
|
120
|
|
|
84
|
|
||
Acquisition-related expenses
|
151
|
|
|
—
|
|
||
Capitalized inventory
|
742
|
|
|
916
|
|
||
State operating loss carryforward
|
24
|
|
|
263
|
|
||
Tax credit carryforward
|
47
|
|
|
178
|
|
||
Foreign country operating loss carryforward
|
157
|
|
|
136
|
|
||
Foreign country valuation allowance
|
(107
|
)
|
|
—
|
|
||
Total gross deferred tax assets
|
9,057
|
|
|
8,956
|
|
||
|
|
|
|
||||
Gross deferred tax liabilities
|
|
|
|
||||
Interest rate swaps
|
(49
|
)
|
|
(74
|
)
|
||
Depreciation
|
(1,739
|
)
|
|
(2,439
|
)
|
||
Deferred revenues
|
(2,164
|
)
|
|
(1,875
|
)
|
||
Goodwill and intangible assets
|
(23,395
|
)
|
|
(23,854
|
)
|
||
Prepaid expenses
|
(120
|
)
|
|
—
|
|
||
Total gross deferred tax liabilities
|
(27,467
|
)
|
|
(28,242
|
)
|
||
|
|
|
|
||||
Net deferred tax liabilities
|
$
|
(18,410
|
)
|
|
$
|
(19,286
|
)
|
|
Operating
Lease
Expense
|
|
Sublease
Income
|
|
Net
Expense
|
||||||
2018
|
$
|
3,363
|
|
|
$
|
1,198
|
|
|
$
|
2,165
|
|
2017
|
$
|
4,924
|
|
|
$
|
1,134
|
|
|
$
|
3,790
|
|
2016
|
$
|
5,100
|
|
|
$
|
888
|
|
|
$
|
4,212
|
|
|
Operating Leases
|
||||||||||
|
Lease
Commitments
|
|
Sublease
Income
|
|
Net
Commitments
|
||||||
2019
|
$
|
2,527
|
|
|
$
|
—
|
|
|
$
|
2,527
|
|
2020
|
1,479
|
|
|
—
|
|
|
1,479
|
|
|||
2021
|
1,270
|
|
|
—
|
|
|
1,270
|
|
|||
2022
|
1,189
|
|
|
—
|
|
|
1,189
|
|
|||
2023
|
898
|
|
|
—
|
|
|
898
|
|
|||
Thereafter
|
167
|
|
|
—
|
|
|
167
|
|
|||
Total
|
$
|
7,530
|
|
|
$
|
—
|
|
|
$
|
7,530
|
|
|
Lease
Commitments
|
|
Sublease
Income
|
|
Net
Commitments
|
||||||
2019
|
$
|
4,456
|
|
|
$
|
376
|
|
|
$
|
4,080
|
|
2020
|
4,579
|
|
|
—
|
|
|
4,579
|
|
|||
2021
|
4,705
|
|
|
—
|
|
|
4,705
|
|
|||
2022
|
4,827
|
|
|
—
|
|
|
4,827
|
|
|||
2023
|
4,948
|
|
|
—
|
|
|
4,948
|
|
|||
Thereafter
|
17,388
|
|
|
—
|
|
|
17,388
|
|
|||
Total
|
$
|
40,903
|
|
|
$
|
376
|
|
|
$
|
40,527
|
|
For the years ended December 31,
|
|
|
|
|
|
||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
|
|
|
|
|
||||||
Supply Chain Management Group
|
$
|
214,809
|
|
|
$
|
214,542
|
|
|
$
|
205,475
|
|
Aviation Group
|
145,423
|
|
|
134,809
|
|
|
133,466
|
|
|||
Federal Services Group
|
336,986
|
|
|
410,762
|
|
|
352,849
|
|
|||
Total revenues
|
$
|
697,218
|
|
|
$
|
760,113
|
|
|
$
|
691,790
|
|
|
|
|
|
|
|
||||||
Operating income:
|
|
|
|
|
|
|
|
|
|||
Supply Chain Management Group
|
$
|
30,626
|
|
|
$
|
33,754
|
|
|
$
|
34,632
|
|
Aviation Group
|
11,076
|
|
|
9,695
|
|
|
12,823
|
|
|||
Federal Services Group
|
15,797
|
|
|
13,419
|
|
|
7,796
|
|
|||
Corporate expenses
|
(3,269
|
)
|
|
(2,543
|
)
|
|
(3,722
|
)
|
|||
Operating income
|
$
|
54,230
|
|
|
$
|
54,325
|
|
|
$
|
51,529
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization expense:
|
|
|
|
|
|
|
|
|
|||
Supply Chain Management Group
|
$
|
7,299
|
|
|
$
|
6,536
|
|
|
$
|
6,445
|
|
Aviation Group
|
5,123
|
|
|
4,835
|
|
|
5,461
|
|
|||
Federal Services Group
|
12,802
|
|
|
14,511
|
|
|
14,140
|
|
|||
Total depreciation and amortization
|
$
|
25,224
|
|
|
$
|
25,882
|
|
|
$
|
26,046
|
|
|
|
|
|
|
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
|
|
|||
Supply Chain Management Group
|
$
|
802
|
|
|
$
|
1,376
|
|
|
$
|
4,195
|
|
Aviation Group
|
1,772
|
|
|
1,387
|
|
|
1,459
|
|
|||
Federal Services Group
|
209
|
|
|
177
|
|
|
94
|
|
|||
Corporate
|
334
|
|
|
373
|
|
|
1,624
|
|
|||
Total capital expenditures
|
$
|
3,117
|
|
|
$
|
3,313
|
|
|
$
|
7,372
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Total assets:
|
|
|
|
||||
Supply Chain Management Group
|
$
|
166,015
|
|
|
$
|
176,860
|
|
Aviation Group
|
316,197
|
|
|
282,738
|
|
||
Federal Services Group
|
92,098
|
|
|
102,372
|
|
||
Corporate
|
64,518
|
|
|
67,043
|
|
||
Total assets
|
$
|
638,828
|
|
|
$
|
629,013
|
|
|
|
Revenues by Customer
Years ended December 31,
|
||||||||||||||||
Customer
|
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||
USPS
|
|
$
|
175,339
|
|
|
25.1
|
|
$
|
180,205
|
|
|
23.7
|
|
$
|
181,215
|
|
|
26.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Navy
|
|
160,952
|
|
|
23.1
|
|
206,644
|
|
|
27.2
|
|
190,155
|
|
|
27.5
|
|||
U.S. Army
|
|
156,519
|
|
|
22.5
|
|
188,462
|
|
|
24.8
|
|
139,764
|
|
|
20.2
|
|||
U.S. Air Force
|
|
17,023
|
|
|
2.4
|
|
7,123
|
|
|
0.9
|
|
3,482
|
|
|
0.5
|
|||
Total - DoD
|
|
334,494
|
|
|
48.0
|
|
402,229
|
|
|
52.9
|
|
333,401
|
|
|
48.2
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial Aviation
|
|
135,864
|
|
|
19.5
|
|
126,960
|
|
|
16.7
|
|
131,067
|
|
|
19.0
|
|||
Other Commercial
|
|
14,742
|
|
|
2.1
|
|
12,498
|
|
|
1.7
|
|
10,721
|
|
|
1.5
|
|||
Total - Commercial
|
|
150,606
|
|
|
21.6
|
|
139,458
|
|
|
18.4
|
|
141,788
|
|
|
20.5
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other Government
|
|
36,779
|
|
|
5.3
|
|
38,221
|
|
|
5.0
|
|
35,386
|
|
|
5.1
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
697,218
|
|
|
100.0
|
|
$
|
760,113
|
|
|
100.0
|
|
$
|
691,790
|
|
|
100.0
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
United States
|
|
$
|
647,168
|
|
|
$
|
708,474
|
|
|
$
|
638,726
|
|
Other Countries
(1)
|
|
50,050
|
|
|
51,639
|
|
|
53,064
|
|
|||
Total revenue
|
|
$
|
697,218
|
|
|
$
|
760,113
|
|
|
$
|
691,790
|
|
Amounts Recorded at Fair Value
|
|
Financial Statement Classification
|
|
Fair Value Hierarchy
|
|
Fair Value December 31, 2018
|
|
Fair Value December 31, 2017
|
||||
Non-COLI assets held in Deferred Supplemental Compensation Plan
|
|
Other assets
|
|
1
|
|
$
|
403
|
|
|
$
|
389
|
|
Interest rate swaps
|
|
Other current assets
|
|
2
|
|
$
|
195
|
|
|
$
|
294
|
|
|
2018 Quarters
|
||||||||||||||
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
176,897
|
|
|
$
|
170,394
|
|
|
$
|
168,931
|
|
|
$
|
180,996
|
|
Costs and operating expenses
|
$
|
165,304
|
|
|
$
|
156,539
|
|
|
$
|
154,934
|
|
|
$
|
167,911
|
|
Operating income
(1)
|
$
|
11,593
|
|
|
$
|
13,855
|
|
|
$
|
15,697
|
|
|
$
|
13,085
|
|
Net income
|
$
|
7,052
|
|
|
$
|
8,751
|
|
|
$
|
10,034
|
|
|
$
|
9,243
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
0.65
|
|
|
$
|
0.80
|
|
|
$
|
0.92
|
|
|
$
|
0.85
|
|
Basic weighted average shares outstanding
|
10,861
|
|
|
10,881
|
|
|
10,881
|
|
|
10,882
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
0.65
|
|
|
$
|
0.80
|
|
|
$
|
0.92
|
|
|
$
|
0.84
|
|
Diluted weighted average shares outstanding
|
10,897
|
|
|
10,919
|
|
|
10,935
|
|
|
10,993
|
|
|
2017 Quarters
|
||||||||||||||
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
197,294
|
|
|
$
|
193,860
|
|
|
$
|
174,164
|
|
|
$
|
194,795
|
|
Costs and operating expenses
|
$
|
183,098
|
|
|
$
|
178,855
|
|
|
$
|
161,927
|
|
|
$
|
181,908
|
|
Operating income
|
$
|
14,196
|
|
|
$
|
15,005
|
|
|
$
|
12,237
|
|
|
$
|
12,887
|
|
Net income
(1)
|
$
|
7,293
|
|
|
$
|
7,807
|
|
|
$
|
6,639
|
|
|
$
|
17,357
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income
(1)
|
$
|
0.67
|
|
|
$
|
0.72
|
|
|
$
|
0.61
|
|
|
$
|
1.60
|
|
Basic weighted average shares outstanding
|
10,823
|
|
|
10,838
|
|
|
10,838
|
|
|
10,838
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
(1)
|
$
|
0.67
|
|
|
$
|
0.72
|
|
|
$
|
0.61
|
|
|
$
|
1.59
|
|
Diluted weighted average shares outstanding
|
10,849
|
|
|
10,862
|
|
|
10,857
|
|
|
10,903
|
|
Tysons, Virginia
|
|
March 6, 2019
|
|
99.1
|
*
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
VSE CORPORATION
|
|
|
|
|
Date:
|
March 6, 2019
|
By:
|
/s/ M. A. Gauthier
|
|
|
|
M. A. Gauthier
|
|
|
|
Chief Executive Officer,
|
|
|
|
President and Chief Operating
|
|
|
|
Officer
|
Name
|
Title
|
Date
|
|
|
|
|
|
|
/s/ Maurice A. Gauthier
|
Director, Chief Executive
|
March 6, 2019
|
Maurice A. Gauthier
|
Officer, President and
|
|
|
Chief Operating Officer
|
|
|
|
|
|
|
|
/s/ Thomas R. Loftus
|
Executive Vice President
|
March 6, 2019
|
Thomas R. Loftus
|
and Chief Financial Officer
|
|
|
(Principal Financial and
|
|
|
Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Calvin S. Koonce
|
Chairman/Director
|
March 6, 2019
|
Calvin S. Koonce
|
|
|
|
|
|
|
|
|
/s/ James F. Lafond
|
Director
|
March 6, 2019
|
James F. Lafond
|
|
|
|
|
|
|
|
|
/s/ Bonnie K. Wachtel
|
Director
|
March 6, 2019
|
Bonnie K. Wachtel
|
|
|
|
|
|
|
|
|
/s/ Ralph E. Eberhart
|
Director
|
March 6, 2019
|
Ralph E. Eberhart
|
|
|
|
|
|
|
|
|
/s/ Jack C. Stultz
|
Director
|
March 6, 2019
|
Jack C. Stultz
|
|
|
|
|
|
|
|
|
/s/ John E. Potter
|
Director
|
March 6, 2019
|
John E. Potter
|
|
|
|
|
|
|
|
|
/s/ Mark E. Ferguson III
|
Director
|
March 6, 2019
|
Mark E. Ferguson III
|
|
|
|
Jurisdiction Organization
|
|
|
Energetics Incorporated
|
Maryland
|
|
|
Integrated Concepts and Research Corporation
|
District of Columbia
|
|
|
Akimeka, LLC
|
Hawaii
|
|
|
Wheeler Bros., Inc.
|
Pennsylvania
|
|
|
VSE Aviation, Inc.
|
Delaware
|
|
|
Air Parts & Supply Co.
|
Florida
|
|
|
Kansas Aviation of Independence, L.L.C.
|
Kansas
|
|
|
Prime Turbines LLC
|
Delaware
|
|
|
CT Aerospace LLC
|
Texas
|
|
|
Ultra Seating Company
|
Texas
|
•
|
Registration Statement (Form S-8 No. 333-195802) pertaining to the 2004 Non-employee Directors Stock Plan, as amended;
|
•
|
Registration Statement (Form S-8 No. 333-195803) pertaining to the 2006 Restricted Stock Plan, as amended; and
|
•
|
Registration Statement (Form S-8 No. 333-134285) pertaining to the 2006 Restricted Stock Plan, as amended
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
March 6, 2019
|
/s/ M. A. Gauthier
|
|
|
|
M. A. Gauthier
|
|
|
|
Chief Executive Officer, President and Chief Operating Officer
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 6, 2019
|
/s/ T. R. Loftus
|
|
|
|
T. R. Loftus
|
|
|
|
Executive Vice President and
Chief Financial Officer
|
Date:
|
March 6, 2019
|
/s/ M. A. Gauthier
|
|
|
M. A. Gauthier
|
|
|
Chief Executive Officer, President and Chief Operating Officer
|
Date:
|
March 6, 2019
|
/s/ T. R. Loftus
|
|
|
T. R. Loftus
|
|
|
Executive Vice President and
Chief Financial Officer
|