“The Company had a very solid quarter. Revenues were up by 10%, gross margins improved slightly from 24.8% to 25.1%, and SG&A and interest costs decreased 2.7% and 37%, respectively. The increased revenues, as well as continued progress on a key site closure contract, contributed to the improved results.”
Robert F. Shawver, Executive Vice President and CFO


For the three-month period ended April 1, 2005, net income was $4.9 million, or $0.32 per diluted share, as compared to net income of $3.1 million, or $0.21 per diluted share, for the same period in 2004. The 58% increase in net income was due primarily to the higher revenues and lower interest expense achieved during the quarter. Revenues of $70.6 million for the first quarter ended April 1, 2005 increased by $6.4 million, or 10%, over the $64.2 million achieved in the comparable period in 2004. The additional revenues were primarily attributable to increases in work scope on existing Federal and Commercial Services’ contracts, as well as additional incentive fees recognized as result of progress made during the quarter on a Federal Services site closure project. Interest expense for the quarter decreased by $0.9 million, or 37%, from the same period in the prior year. The lower interest expense was attributable to lower debt balances outstanding in 2005 due to accelerated loan payments made during 2004.