PRESS RELEASES
<< Back
Willdan Reports First Quarter 2009 Financial Results
ANAHEIM, Calif., May 14, 2009 (BUSINESS WIRE) -- Willdan Group, Inc. ("Willdan") (NASDAQ:WLDN), announces financial results for its first quarter ended April 3, 2009.
For the first quarter of 2009, Willdan reported total contract revenue of $17.2 million and a net loss of $0.5 million, or $0.06 per basic and diluted share.
Tom Brisbin, Willdan's Chief Executive Officer, stated: "While we continued to realize a net loss in our first quarter, we posted our eighth consecutive quarter of positive cash flow from operations and continued to contain our costs.The operational changes we made last year were not easy but were necessary to win new work, improve productivity and position Willdan to improve performance in 2009."
First Quarter 2009 Results
For the first quarter of fiscal 2009, revenue was $17.2 million, down $0.6 million, or 3.3%, from revenue of $17.8 million for the comparable period last year. On a sequential basis, revenue was down $1.8 million, or 9.3%, from the fourth quarter of 2008. The fourth quarter of 2008 contained 14 weeks while the first quarter of 2009 contained only 13 weeks. On a normalized basis, sequential revenue would have been down $0.4 million, or 2.4%, from the fourth quarter. Loss from operations was $0.7 million compared to income from operations of $43,000 for the first quarter of fiscal 2008. On a sequential basis, loss from operations was down $1.3 million, or 64.9%, over the fourth quarter of 2008.
Net loss was $0.5 million for the first quarter of fiscal 2009, compared to net income of $0.1 million for the comparable period last year and a net loss of $1.2 million on a sequential basis.
Basic and diluted loss per share for the first quarter of fiscal 2009 was $0.06 compared to basic and diluted earnings per share of $0.02 for the comparable period last year.
Willdan generated cash flow from operations of $1.6 million in the first quarter of fiscal 2009 and its balance sheet at April 3, 2009 reflected cash and cash equivalents of $10.3 million, working capital of $19.8 million and stockholders' equity of $34.0 million.
| Three Months Ended | |||||||||
| April 3, | March 28, | ||||||||
| In thousands (except EPS data) | 2009 | 2008 | |||||||
| Revenue | $ | 17,185 | $ | 17,776 | |||||
| (Loss) income from operations | (705 | ) | 43 | ||||||
| Interest income | 12 | 148 | |||||||
| Interest (expense) reversal | (11 | ) | 20 | ||||||
| Income tax (benefit) expense | (250 | ) | 95 | ||||||
| Net (loss) income | $ | (454 | ) | $ | 116 | ||||
| Basic and diluted (loss) earnings per share | $ | (0.06 | ) | $ | (0.02 | ) | |||
| Weighted average shares outstanding: | |||||||||
| Basic and diluted | 7,169 | 7,155 | |||||||
Use of Non-GAAP Financial Measures: Adjusted EBITDA
Adjusted EBITDA is a supplemental measure used by Willdan's management to measure our operating performance. Willdan defines Adjusted EBITDA as net (loss) income plus net interest expense, income tax expense (benefit), depreciation and amortization, goodwill impairment expense, lease abandonment expense (recapture) and loss (gain) on sales of assets. Willdan's definition of Adjusted EBITDA may differ from those of many companies reporting similarly named measures. This measure should be considered in addition to, and not as a substitute for or superior to, other measures of financial performance prepared in accordance with U.S. generally accepted accounting principles, or GAAP, such as net income. Willdan believes Adjusted EBITDA enables management to separate unusual or infrequent income and expense items from its results of operations to provide a more normalized and consistent view of operating performance on a period-to-period basis. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes. Willdan also believes Adjusted EBITDA is useful to investors, research analysts, investment bankers and lenders because it removes from our operational results the impact of certain unusual or infrequent income and expense items, which may facilitate comparison of our results from period-to-period.
Adjusted EBITDA is not a recognized term under GAAP and does not purport to be an alternative to income from operations or net income as an indicator of operating performance or any other GAAP measure.
For the three months ended April 3, 2009, Adjusted EBITDA was $(0.2) million compared to $0.5 million for the comparable period last year.
The following is a reconciliation of net (loss) income to Adjusted EBITDA:
| Three Months Ended | |||||||||
| April 3, | March 28, | ||||||||
| In thousands | 2009 | 2008 | |||||||
| Net (loss) income | $ | (454 | ) | $ | 116 | ||||
| Interest income | (12 | ) | (148 | ) | |||||
| Interest expense (reversal) | 11 | (20 | ) | ||||||
| Income tax (benefit) expense | (250 | ) | 95 | ||||||
| Lease (recapture) abandonment | (8 | ) | -- | ||||||
| Depreciation and amortization | 525 | 394 | |||||||
| Loss on sale of assets | -- | 39 | |||||||
| Adjusted EBITDA | $ | (188 | ) | $ | 476 | ||||
Conference Call and Webcast
Chief Executive Officer Thomas Brisbin and Chief Financial Officer Kimberly Gant plan to host a conference call on May 14, 2009 at 5:00 p.m. Eastern/2:00 p.m. Pacific to further discuss Willdan's financial results and business developments.
Interested parties may access the conference call by dialing 800-762-8795 (480-629-9772 for international callers). When prompted, ask for the "Willdan Group Investor Conference Call." The conference call will be webcast simultaneously on Willdan's website at www.willdan.com under Investors: Events.
The telephonic replay of the conference call may be accessed approximately two hours after the call through May 28, 2009, by dialing 800-406-7325 (303-590-3030 for international callers). The replay access code is 4075889#. The webcast replay will be archived for 12 months.
About Willdan Group, Inc.
Founded over 40 years ago, Willdan Group, Inc. is a provider of outsourced and consulting services to public agencies located primarily in California and other western states. Willdan Group, Inc. assists cities and other government agencies and, to a lesser extent, private industry and public utilities with a broad range of services, including civil engineering, building and safety services, geotechnical engineering, energy efficiency, water conservation, renewable resource strategy, financial and economic consulting, and disaster preparedness and homeland security. www.willdan.com.
Forward-Looking Statements
Safe Harbor Statement:Statements in this press release which are not purely historical, including statements regarding Willdan Group's intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risk that the Company will not be able to expand its services or meet the needs of customers in markets in which it operates. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, a slowdown in the local and regional economies of the states where Willdan conducts business and the loss of or inability to hire additional qualified professionals. The Company's business could be affected by a number of other factors, including the risk factors listed from time to time in the Company's SEC reports including, but not limited to, the Form 10-K annual report for the year ended January 2, 2009 filed on April 2, 2009. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan Group, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||
| April 3, | January 2, | |||||
| 2009 | 2009 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 10,328,000 | $ | 8,144,000 | ||
Accounts receivable, net of allowance for doubtful accounts of $711,000 and $662,000 at April 3, 2009 and January 2, 2009, respectively | 10,740,000 | 12,862,000 | ||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 8,494,000 | 8,281,000 | ||||
| Income tax receivable | 1,186,000 | 956,000 | ||||
| Other receivables | 53,000 | 48,000 | ||||
| Prepaid expenses and other current assets | 2,100,000 | 1,784,000 | ||||
| Total current assets | 32,901,000 | 32,075,000 | ||||
| Equipment and leasehold improvements, net | 2,090,000 | 2,377,000 | ||||
| Goodwill | 11,151,000 | 11,145,000 | ||||
| Other intangible assets, net | 1,184,000 | 1,367,000 | ||||
| Other assets | 356,000 | 373,000 | ||||
| Deferred income taxes, net of current portion | 233,000 | 233,000 | ||||
| Total assets | $ | 47,915,000 | $ | 47,570,000 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Excess of outstanding checks over bank balance | $ | 1,086,000 | $ | 448,000 | ||
| Accounts payable | 1,886,000 | 2,111,000 | ||||
| Purchase price payable | 1,000,000 | 1,000,000 | ||||
| Accrued liabilities | 5,430,000 | 5,253,000 | ||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 936,000 | 704,000 | ||||
| Current portion of notes payable | 53,000 | 52,000 | ||||
| Current portion of capital lease obligations | 151,000 | 168,000 | ||||
| Current portion of deferred income taxes | 2,519,000 | 2,519,000 | ||||
| Total current liabilities | 13,061,000 | 12,255,000 | ||||
| Notes payable, less current portion | 4,000 | 17,000 | ||||
| Capital lease obligations, less current portion | 124,000 | 157,000 | ||||
| Deferred lease obligations | 729,000 | 805,000 | ||||
| Total liabilities | 13,918,000 | 13,234,000 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding | -- | -- | ||||
Common stock, $0.01 par value, 40,000,000 shares authorized: 7,188,000 and 7,164,000 shares issued and outstanding at April 3, 2009 and January 2, 2009, respectively | 72,000 | 72,000 | ||||
| Additional paid-in capital | 33,199,000 | 33,084,000 | ||||
| Retained earnings | 726,000 | 1,180,000 | ||||
| Total stockholders' equity | 33,997,000 | 34,336,000 | ||||
| Total liabilities and stockholders' equity | $ | 47,915,000 | $ | 47,570,000 | ||
WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
Three Months Ended | |||||||
| April 3, | March 28, | ||||||
| 2009 | 2008 | ||||||
| Contract revenue | $ | 17,185,000 | $ | 17,776,000 | |||
| Direct costs of contract revenue (exclusive of depreciation and amortization shown separately below): | |||||||
| Salaries and wages | 4,790,000 | 5,544,000 | |||||
| Subconsultant services | 2,426,000 | 1,275,000 | |||||
| Other direct costs | 1,087,000 | 315,000 | |||||
| Total direct costs of contract revenue | 8,303,000 | 7,134,000 | |||||
| General and administrative expenses: | |||||||
| Salaries and wages, payroll taxes and employee benefits | 5,482,000 | 6,442,000 | |||||
| Facilities and facilities related | 1,138,000 | 1,148,000 | |||||
| Stock-based compensation | 69,000 | 93,000 | |||||
| Depreciation and amortization | 525,000 | 394,000 | |||||
| Other | 2,373,000 | 2,522,000 | |||||
| Total general and administrative expenses | 9,587,000 | 10,599,000 | |||||
| (Loss) income from operations | (705,000 | ) | 43,000 | ||||
| Other income (expense): | |||||||
| Interest income | 12,000 | 148,000 | |||||
| Interest (expense) reversal | (11,000 | ) | 20,000 | ||||
| Total other income, net | 1,000 | 168,000 | |||||
| (Loss) income before income tax expense | (704,000 | ) | 211,000 | ||||
| Income tax (benefit) expense | (250,000 | ) | 95,000 | ||||
| Net (loss) income | $ | (454,000 | ) | $ | 116,000 | ||
| (Loss) earnings per share: | |||||||
| Basic and diluted | $ | (0.06 | ) | $ | 0.02 | ||
| Weighted-average shares outstanding: | |||||||
| Basic and diluted | 7,169,000 | 7,155,000 | |||||
WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Three Months Ended | ||||||||
| April 3, | March 28, | |||||||
| 2009 | 2008 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (454,000 | ) | $ | 116,000 | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 525,000 | 394,000 | ||||||
| Lease abandonment/recapture expense | (8,000 | ) | -- | |||||
| Loss on sale of equipment | -- | 39,000 | ||||||
| Allowance for doubtful accounts | 158,000 | 52,000 | ||||||
| Stock-based compensation | 69,000 | 93,000 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,964,000 | 2,050,000 | ||||||
| Costs and estimated earnings in excess of billing on uncompleted contracts | (213,000 | ) | (967,000 | ) | ||||
| Income tax receivable | (230,000 | ) | -- | |||||
| Other receivables | (5,000 | ) | 36,000 | |||||
| Prepaid expenses and other current assets | (316,000 | ) | 350,000 | |||||
| Other assets | 17,000 | (7,000 | ) | |||||
| Accounts payable | (225,000 | ) | 417,000 | |||||
| Accrued liabilities | 185,000 | (1,361,000 | ) | |||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 232,000 | (235,000 | ) | |||||
| Deferred lease obligations | (76,000 | ) | (3,000 | ) | ||||
| Net cash provided by operating activities | 1,623,000 | 974,000 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of equipment and leasehold improvements | (55,000 | ) | (193,000 | ) | ||||
| Payments for business acquisitions | (6,000 | ) | -- | |||||
| Purchase of liquid investments | -- | (7,100,000 | ) | |||||
| Proceeds from sale of liquid investments | -- | 4,135,000 | ||||||
| Net cash used in investing activities | (61,000 | ) | (3,158,000 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Changes in excess of outstanding checks over bank balance | 638,000 | 205,000 | ||||||
| Payments on notes payable | (12,000 | ) | (435,000 | ) | ||||
| Principal payments on capital leases | (50,000 | ) | (43,000 | ) | ||||
| Proceeds from sales of common stock under employee stock purchase plan | 46,000 | 41,000 | ||||||
| Net cash provided by (used in) financing activities | 622,000 | (232,000 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 2,184,000 | (2,416,000 | ) | |||||
| Cash and cash equivalents at beginning of the period | 8,144,000 | 15,511,000 | ||||||
| Cash and cash equivalents at end of the period | $ | 10,328,000 | $ | 13,095,000 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 11,000 | $ | 27,000 | ||||
| Income taxes | 2,000 | 385,000 | ||||||
SOURCE: Willdan Group, Inc.
Willdan Group, Inc.
Kimberly Gant
Chief Financial Officer
714-940-6329
kgant@willdan.com
or
Financial Profiles, Inc.
Moira Conlon, 310-277-4907
mconlon@finprofiles.com
Copyright Business Wire 2009
