VSE Corporation Files 2023 Annual Report on Form 10-K

TL;DR

<b>VSE Corporation has filed its 2023 10-K report detailing its fiscal year-end performance and corporate information.</b>

AI Summary

VSE CORP (VSECU) filed a Annual Report (10-K) with the SEC on March 8, 2024. VSE Corporation filed its 2023 Form 10-K on March 8, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Services-Engineering Services (SIC 8711). VSE Corporation was formerly known as Value Engineering Co. The company is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking VSE CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of VSE Corporation's financial health, operational performance, and strategic direction for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's financial position, identify potential risks, and make informed investment decisions.

Risk Assessment

Risk Level: medium — VSE CORP shows moderate risk based on this filing. The company's business is subject to risks inherent in government contracting, including potential changes in defense spending and regulatory requirements, as indicated by its SIC code and the nature of its services.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand VSE Corporation's performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-08 — Filing Date (FILED AS OF DATE)
• 8711 — Standard Industrial Classification (SERVICES-ENGINEERING SERVICES)

Key Players & Entities

• VSE CORP (company) — FILER
• VSE CORPORATION (company) — COMPANY CONFORMED NAME
• Value Engineering Co (company) — FORMER COMPANY
• DE (company) — STATE OF INCORPORATION
• VA (company) — BUSINESS ADDRESS STATE
• 7039604600 (dollar_amount) — BUSINESS PHONE

FAQ

Risk Factors

• Government Contracting Risks [high — regulatory]: The company's operations are subject to the complexities and risks associated with government contracting, including potential changes in procurement policies, funding levels, and regulatory compliance.
• Defense Spending Fluctuations [medium — market]: VSE Corporation's performance is significantly influenced by defense spending trends, which can be volatile and subject to geopolitical events and government budget priorities.
• Integration of Acquisitions [medium — operational]: The company may face challenges in successfully integrating acquired businesses, which could impact operational efficiency and financial results.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 2023 Form 10-K.
• 2024-03-08: Filing Date — Date VSE Corporation officially submitted its 2023 Form 10-K to the SEC.

Key Financial Figures

• $0.05 — ich registered Common Stock, par value $0.05 per share VSEC The NASDAQ Global Select

Filing Documents

• vsec-20231231.htm (10-K) — 1503KB
• ex101vse-sixthamendmentoft.htm (EX-10.1) — 1125KB
• ex102vse-deferredsupplemen.htm (EX-10.2) — 129KB
• vsec-2023x10kxex21.htm (EX-21) — 12KB
• vsec-2023x10kxex231.htm (EX-23.1) — 3KB
• vsec-2023x10kxex311.htm (EX-31.1) — 9KB
• vsec-2023x10kxex312.htm (EX-31.2) — 9KB
• vsec-2023x10kxex321.htm (EX-32.1) — 5KB
• vsec-2023x10kxex322.htm (EX-32.2) — 5KB
• vsecompensationclawbackpol.htm (EX-97.1) — 36KB
• vsec-20231231_g1.jpg (GRAPHIC) — 198KB
• vsec-20231231_g2.jpg (GRAPHIC) — 113KB
• 0000102752-24-000017.txt (&nbsp;) — 11471KB
• vsec-20231231.xsd (EX-101.SCH) — 55KB
• vsec-20231231_cal.xml (EX-101.CAL) — 137KB
• vsec-20231231_def.xml (EX-101.DEF) — 328KB
• vsec-20231231_lab.xml (EX-101.LAB) — 803KB
• vsec-20231231_pre.xml (EX-101.PRE) — 590KB
• vsec-20231231_htm.xml (XML) — 1394KB

Risk Factors

ITEM 1A Risk Factors 9

Unresolved Staff Comments

ITEM 1B Unresolved Staff Comments 14 ITEM 1C C ybersecurity 14

Properties

ITEM 2 Properties 15

Legal Proceedings

ITEM 3 Legal Proceedings 15

Mine Safety Disclosures

ITEM 4 Mine Safety Disclosures 15 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

ITEM 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16

[Reserved]

ITEM 6 [Reserved] 18

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risks

ITEM 7A Quantitative and Qualitative Disclosures About Market Risks 26

Financial Statements and Supplementary Data

ITEM 8 Financial Statements and Supplementary Data 27

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

ITEM 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 57

Controls and Procedures

ITEM 9A Controls and Procedures 57

Other Information

ITEM 9B Other Information 59

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 59 PART III

Directors, Executive Officers and Corporate Governance

ITEM 10 Directors, Executive Officers and Corporate Governance 59

Executive Compensation

ITEM 11 Executive Compensation 59

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ITEM 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 59

Certain Relationships and Related Transactions, and Director Independence

ITEM 13 Certain Relationships and Related Transactions, and Director Independence 59

Principal Accountant Fees and Services

ITEM 14 Principal Accountant Fees and Services 59 PART IV

Exhibits and Financial Statement Schedules

ITEM 15 Exhibits and Financial Statement Schedules 60

Form 10-K Summary

ITEM 16 Form 10-K Summary 60 Exhibits 62

Signatures

Signatures 64 -3- Table of Contents

Forward Looking Statements

Forward Looking Statements This Annual Report on Form 10-K ("Form 10-K") contains statements that, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All such statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of such safe harbor provisions. "Forward-looking" statements, as such term is defined by the Securities and Exchange Commission (the "SEC") in its rules, regulations and releases, represent our expectations or beliefs, including, but not limited to, statements concerning our operations, economic performance, financial condition, growth and acquisition strategies, investments and future operational plans. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "forecast," "seek," "plan," "predict," "project," "could," "estimate," "might," "continue," "seeking" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors, including, but not limited to, those identified in Item 1A, "Risk Factors" in this Form 10-K. All forward-looking statements made herein are qualified by these cautionary statements and risk factors and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect manage

Business

ITEM 1. Business History and Organization VSE Corporation, together with its consolidated subsidiaries, is a leading provider of aftermarket distribution and maintenance, repair and overhaul ("MRO") services for air and land transportation assets for commercial and government markets. VSE was incorporated in Delaware in 1959. The terms "we," "us," "our," "VSE" and the "Company" mean VSE Corporation and its operating businesses unless the context indicates otherwise. Purpose, Vision and Our Core Values Purpose and Vision Statement We deliver trusted solutions to inspire the performance of tomorrow. We are focused on enhancing the productivity and longevity of our customer's high-value, business-critical assets. We strive to achieve this through our dedication to creating better solutions, anticipating global needs, and building stronger relationships with our customers. Core Values Customer Obsessed: Our exceptional service sets us apart Own It: Accountability is our responsibility Speak Up: Our experience and our voice matters Better Together: We collaborate to win Results Matter: We inspire and deliver our key results Business Operations Our business operations are managed under two reportable operating segments: Aviation and Fleet. Prior to the sale of the Federal and Defense segment, as discussed below, we operated in three reportable operating segments. Aviation The Aviation segment is a leading provider of aftermarket parts distribution and MRO services for components and engine accessories supporting commercial, business and general aviation operators ("B&GA"). This business offers a range of services to a diversified global client base of commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators ("FBOs"). Our Aviation segment accounted for 63%, 61%, and 51% of our consolidated revenues in 2023, 2022 and 2021, res

Risk Factors

ITEM 1A. Risk Factors Our future results may differ materially from past results and from those projected in the forward-looking statements contained in this Form 10-K due to various uncertainties and risks, including those risks set forth below, nonrecurring events and other important factors disclosed previously and from time to time in our other reports filed with the SEC. Operational Risks We face various risks related to health epidemics, pandemics and similar outbreaks, which could adversely affect our business. We face a wide variety of risks related to health epidemics, pandemics, and similar outbreaks. These events have adversely affected, and may continue to adversely affect, our operations, supply chains and distribution systems. Public health crises pose a risk that we or our employees, customers, suppliers, manufacturers, and other partners may be prevented from conducting business activities for an indefinite period of time, including due to the spread of the disease or shutdowns requested or mandated by governmental authorities. The extent to which public health crises may have a material adverse effect on our future business, financial condition and results of operations will depend on many factors that are not within our control, including but not limited to the path and effect of epidemics, pandemics, crises or public health concerns, including factors like new variants, vaccinations, potential supply chain disruptions, and inflation, which can impact our key markets. Supply chain delays, disruptions, and potential geopolitical uncertainty could adversely affect our business operations and expenses. Due to current economic and geopolitical uncertainty and supply chain disruptions, our business could be adversely impacted by delays or the inability to source products and services for our customers. If our suppliers experience increased disruptions to their operations as a result of these dynamics, they may be unable to fill our supply

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View this 10-K filing on SEC EDGAR