VSE Corp. (VSEC:NASDAQ)

VSE Corp. has committed to a new 15-year lease agreement under which Metro Park 7 LLC will develop a new office building that will serve as VSE's new headquarters. The 95,000-square foot Class-A building will be located at 6348 Walker Lane in the Metro Park office complex in east Springfield, Va. The facility will feature numerous services and amenities, and will be built to achieve LEED Gold certification for environmentally sustainable, high-performance design and construction. VSE expects to take occupancy of the building in the spring of 2012.

VSE Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported income before income taxes of $12,499,000 and net income of $7,726,000 or $1.50 per diluted share on revenues of $263,068,000 against income before income taxes of $8,728,000 and net income of $5,309,000 or $1.04 per diluted share on revenues of $306,811,000 for the same period a year ago. The revenue decreases for the third quarter resulted primarily from the expiration of Army Equipment Support Program in February 2009, and temporary delays in work on the Port of Anchorage Intermodal Expansion Project due to environmental and technical issues near the site. The revenue decreases from these two programs were partially offset by growth in revenues from the RCV Modernization and CED Assured Mobility Systems programs, an increase in the technical services performed by Fleet Maintenance Division, and growth in the equipment refurbishment services provided by Engineering and Logistics Division. For the nine months, the company reported income before income taxes of $30,551,000 and net income of $18,808,000 or $3.66 per diluted share on revenues of $758,632,000 against income before income taxes of $22,414,000 and net income of $13,676,000 or $2.68 per diluted share on revenues of $747,222,000 for the same period a year ago. The increase in net income for the third quarter and nine months of 2009 was primarily due to increased profits on ELD equipment refurbishment services, an annual incentive fee recognition under U.S. Treasury Department Seized Asset Program, the inclusion of company's G&B Solutions subsidiary operating results for the full three-month and nine-month periods in 2009 as compared to partial comparable periods in 2008 when it acquired G&B, and increased profits on RCV Modernization Program.

VSE Corp. announced that the Systems Engineering Division of its Federal Group was awarded a subcontract to provide Vehicle Integration Kits (VIKs), spare VIK components, and engineering and installation support on a wide range of tactical wheeled vehicles and combat vehicles for the U.S. Army and U.S. Marine Corps through a multiple award indefinite delivery/indefinite quantity contract under the Driver's Vision Enhancer-Family of Systems (DVE-FOS) program. The subcontract, awarded by BAE Systems, has an anticipated ceiling value to VSE of approximately $190 million over a five-year period. The DVE-FOS system provides drivers of tactical and combat vehicles greater situational awareness and easier maneuvering capability during conditions of darkness, inclement weather, and adverse battlefield conditions such as dust and smoke. VSE will be the sole provider of the VIKs and spare VIK components under the DVE-FOS contract and will provide all required installation, engineering and logistics support related to the VIKs under the direction of the Forward Looking Infrared Radar Division at Ft. Belvoir, Virginia.