PRESS RELEASES
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Willdan Group Reports First Quarter 2015 Financial Results
47% Revenue Increase
30% Organic Growth
113% EBITDA Growth
Investment Community Conference Call Today at 5:00 p.m. Eastern Time
For the first quarter of 2015, Willdan reported total contract revenue
of $33.3 million and net income of $1.5 million, or $0.19 and
"We are pleased with the growth during the first quarter and are excited
about the momentum in our business," said
First Quarter 2015 Financial Highlights
Total contract revenue for the first quarter of 2015 increased 46.7% to
Direct costs of contract revenue were
Revenue, net of subcontractor costs, for the first quarter of 2015
increased 35% to
Total general and administrative expenses for the first quarter of 2015
increased by 33% to
EBITDA (as defined below) was
Income tax expense was
Net income for the quarter ended April 3, 2015 increased by
Willdan reported $12.1 million in cash and cash equivalents at April 3,
2015, a decrease of
Outlook
For 2015, Willdan expects to generate revenue of between
Use of Non-GAAP Financial Measures
"Revenue, net of subcontractor costs," a non-GAAP financial measure, is
a supplemental measure that
Earnings before interest, taxes, depreciation and amortization (EBITDA)
is a supplemental measure used by Willdan's management to evaluate its
operating performance.
Willdan's definition of Revenue, net of subcontractor costs, and EBITDA may differ from other companies reporting similarly named measures. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenues and net income.
Conference Call Details
Chief Executive Officer Thomas Brisbin and Chief Financial Officer Stacy
McLaughlin will host a conference call today, May 14, 2015, at 5:00 p.m.
Eastern Time/
Interested parties may participate in the conference call by dialing 888-427-9419 (719-325-2315 for international callers). When prompted, ask for the "Willdan Group, Inc., First Quarter 2015 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
About Willdan Group, Inc.
Forward Looking Statements
Statements in this press release that are not purely historical,
including statements regarding
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
2015 |
2015 |
||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 12,079,000 | $ | 20,371,000 | |||
Accounts receivable, net of allowance for doubtful accounts of
|
17,060,000 | 13,189,000 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 15,530,000 | 12,170,000 | |||||
Other receivables | 212,000 | 208,000 | |||||
Prepaid expenses and other current assets | 2,331,000 | 2,244,000 | |||||
Total current assets | 47,212,000 | 48,182,000 | |||||
Equipment and leasehold improvements, net | 1,684,000 | 1,384,000 | |||||
Goodwill | 15,363,000 | — | |||||
Other intangible assets, net | 2,088,000 | — | |||||
Other assets | 907,000 | 535,000 | |||||
Deferred income taxes, net of current portion | 4,333,000 | 4,558,000 | |||||
Total assets | $ | 71,587,000 | $ | 54,659,000 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Excess of outstanding checks over bank balance | $ | 1,875,000 | $ | 2,198,000 | |||
Accounts payable | 5,242,000 | 3,237,000 | |||||
Accrued liabilities | 9,784,000 | 10,668,000 | |||||
Contingent consideration payable | 1,687,000 | — | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 4,996,000 | 3,863,000 | |||||
Current portion of notes payable | 3,745,000 | 355,000 | |||||
Current portion of capital lease obligations | 313,000 | 324,000 | |||||
Current portion of deferred income taxes | 3,382,000 | 3,131,000 | |||||
Total current liabilities | 31,024,000 | 23,776,000 | |||||
Contingent consideration payable, less current portion | 4,055,000 | — | |||||
Notes payable, less current portion | 2,319,000 | — | |||||
Capital lease obligations, less current portion | 262,000 | 306,000 | |||||
Deferred lease obligations | 227,000 | 164,000 | |||||
Total liabilities | 37,887,000 | 24,246,000 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock, outstanding |
— | — | |||||
Common stock,
shares issued and outstanding at |
77,000 | 76,000 | |||||
Additional paid-in capital | 37,233,000 | 35,436,000 | |||||
Accumulated deficit | (3,610,000 | ) | (5,099,000 | ) | |||
Total stockholders' equity | 33,700,000 | 30,413,000 | |||||
Total liabilities and stockholders' equity | $ | 71,587,000 | $ | 54,659,000 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||
Three Months Ended | |||||||
|
|
||||||
2015 | 2014 | ||||||
Contract revenue | $ | 33,297,000 | $ | 22,686,000 | |||
Direct costs of contract revenue (exclusive of depreciation and amortization shown separately below): | |||||||
Salaries and wages | 7,985,000 | 6,202,000 | |||||
Subcontractor services and other direct costs | 11,821,000 | 6,996,000 | |||||
Total direct costs of contract revenue | 19,806,000 | 13,198,000 | |||||
General and administrative expenses: | |||||||
Salaries and wages, payroll taxes and employee benefits | 6,641,000 | 4,918,000 | |||||
Facilities and facilities related | 1,048,000 | 1,062,000 | |||||
Stock-based compensation | 124,000 | 41,000 | |||||
Depreciation and amortization | 429,000 | 103,000 | |||||
Other | 2,620,000 | 2,052,000 | |||||
Total general and administrative expenses | 10,862,000 | 8,176,000 | |||||
Income from operations | 2,629,000 | 1,312,000 | |||||
Other income (expense), net: | |||||||
Interest income | 1,000 | 2,000 | |||||
Interest expense | (51,000 | ) | (4,000 | ) | |||
Other, net | 54,000 | 49,000 | |||||
Total other income, net | 4,000 | 47,000 | |||||
Income before income taxes | 2,633,000 | 1,359,000 | |||||
Income tax expense | 1,138,000 | 44,000 | |||||
Net income | $ | 1,495,000 | $ | 1,315,000 | |||
Earnings per share: | |||||||
Basic | $ | 0.19 | $ | 0.18 | |||
Diluted | 0.18 | 0.17 | |||||
Weighted-average shares outstanding: | |||||||
Basic | 7,765,000 | 7,397,000 | |||||
Diluted | 8,103,000 | 7,609,000 | |||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
Three Months Ended | |||||||
2015 |
2014 |
||||||
Cash flows from operating activities: | |||||||
Net income | $ | 1, 495,000 | $ | 1,315,000 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 429,000 | 103,000 | |||||
Deferred income taxes | 476,000 | — | |||||
(Gain) loss on sale of equipment | (5,000 | ) | 2,000 | ||||
Provision for doubtful accounts | 226,000 | 78,000 | |||||
Stock-based compensation | 124,000 | 41,000 | |||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | |||||||
Accounts receivable | (3,052,000 | ) | 2,298,000 | ||||
Costs and estimated earnings in excess of billings on uncompleted contracts | (2,870,000 | ) | (1,093,000 | ) | |||
Other receivables | (4,000 | ) | (138,000 | ) | |||
Prepaid expenses and other current assets | (46,000 | ) | 477,000 | ||||
Other assets | (372,000 | ) | (315,000 | ) | |||
Accounts payable | 1,523,000 | (381,000 | ) | ||||
Changes in excess of outstanding checks over bank balance | (323,000 | ) | 633,000 | ||||
Accrued liabilities | (1,358,000 | ) | 1,516,000 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,063,000 | 232,000 | |||||
Deferred lease obligations | 63,000 | (47,000 | ) | ||||
Net cash (used in) provided by operating activities | (2,631,000 | ) | 4,721,000 | ||||
Cash flows from investing activities: | |||||||
Purchase of equipment and leasehold improvements | (211,000 | ) | (33,000 | ) | |||
Cash paid for acquisitions, net of cash acquired | (7,043,000 | ) | — | ||||
Net cash used in investing activities | (7,254,000 | ) | (33,000 | ) | |||
Cash flows from financing activities: | |||||||
Payments on notes payable | (491,000 | ) | (198,000 | ) | |||
Proceeds from notes payable | 1,950,000 | — | |||||
Principal payments on capital lease obligations | (55,000 | ) | (41,000 | ) | |||
Proceeds from stock option exercise | 111,000 | 45,000 | |||||
Proceeds from sales of common stock under employee stock purchase plan | 78,000 | 28,000 | |||||
Net cash provided by (used in) financing activities | 1,593,000 | (166,000 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (8,292,000 | ) | 4,522,000 | ||||
Cash and cash equivalents at beginning of the period | 20,371,000 | 8,134,000 | |||||
Cash and cash equivalents at end of the period | $ | 12,079,000 | $ | 12,656,000 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 48,000 | $ | 4,000 | |||
Income taxes | 362,000 | 15,000 | |||||
Supplemental disclosures of noncash investing and financing activities: | |||||||
Issuance of notes payable related to business acquisitions | $ | 4,250,000 | $ | — | |||
Issuance of common stock related to business acquisitions | 1,485,000 | — | |||||
Contingent consideration related to business acquisitions | 5,742,000 | — | |||||
Equipment acquired under capital lease obligations | — | 47,000 | |||||
|
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Reconciliation of GAAP Revenue to "Revenue, Net of Subcontractor Costs" | ||||||||||||||
Three Months Ended | ||||||||||||||
Change | ||||||||||||||
|
|
$ | % | |||||||||||
Contract revenue | $ | 33,297,000 | $ | 22,686,000 | $ | 10,611,000 | 47 | % | ||||||
Subcontractor costs | 8,297,000 | 4,194,000 | 4,103,000 | 98 | % | |||||||||
Revenue, net of subcontractor costs |
|
|
|
35 | % | |||||||||
|
|||||||
Reconciliation of GAAP Net Income to EBITDA |
|||||||
The following is a reconciliation of net income to EBITDA: |
|||||||
Three Months Ended | |||||||
In thousands |
2015 |
2014 |
|||||
Net income | $ | 1,495 | $ | 1,315 | |||
Interest income | (1 | ) | (2 | ) | |||
Interest expense | 51 | 4 | |||||
Income tax expense | 1,138 | 44 | |||||
Depreciation and amortization | 429 | 103 | |||||
EBITDA | $ | 3,112 | $ | 1,464 |
Chief Financial
Officer
Tel: 714-940-6300
smclaughlin@willdan.com
or
Investor/Media
Contact
Tel: 310-478-2700
Moira
Conlon: mconlon@finprofiles.com
Source:
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