VSE Corporation (VSEC) has reported a 7.24 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $7.18 million, or $0.66 a share in the quarter, compared with $7.74 million, or $0.72 a share for the same period last year.

Revenue during the quarter surged 48.55 percent to $214.90 million from $144.67 million in the previous year period. Total expenses were 93.82 percent of quarterly revenues, up from 89.55 percent for the same period last year. That has resulted in a contraction of 427 basis points in operating margin to 6.18 percent.

Operating income for the quarter was $13.29 million, compared with $15.12 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $19.82 million compared with $20.96 million in the prior year period. At the same time, adjusted EBITDA margin contracted 527 basis points in the quarter to 9.22 percent from 14.49 percent in the last year period.

"We experienced steady revenue growth throughout 2016, led by renewed vigor in our Federal Services Group markets," said VSE chief executive officer Maurice "Mo" Gauthier. "Our commitment to our legacy services business has been rewarded as our government customer has refocused on strengthening our nation's defense. Increased bookings and funding levels from our U.S. Department of Defense programs position us well heading into 2017. Our Supply Chain Management and Aviation groups continue to provide integral contributions to our financial performance. Additionally, our recent settlement of several long-standing litigation matters adversely impacted our fourth quarter and year end results, but provides financial resolution for 2016 and allows us to better focus on our future."