Willdan Group Reports Fourth Quarter Results and Provides 2022 Outlook

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Mar 10, 2022

Willdan Group Reports Fourth Quarter Results and Provides 2022 Outlook

ANAHEIM, Calif.--(BUSINESS WIRE)--Mar. 10, 2022-- Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN), a provider of professional, technical and consulting services, today reported financial results for its fourth quarter and fiscal year ended December 31, 2021.

Fourth Quarter 2021 Summary

  • Consolidated contract revenue of $92.2 million
  • Net revenue* of $51.8 million
  • Net loss of $0.9 million, or $(0.07) per diluted share
  • Adjusted net income* of $6.0 million, or $0.47 per diluted share
  • Adjusted EBITDA* of $9.4 million

Fiscal Year 2021 Summary

  • Consolidated contract revenue of $353.8 million
  • Net revenue* of $201.5 million
  • Net loss of $8.4 million, or $(0.68) per diluted share
  • Adjusted net income* of $19.3 million, or $1.55 per diluted share
  • Adjusted EBITDA* of $27.5 million

2022 Financial Targets

  • Net revenue* growth of approximately 20%
  • Adjusted EBITDA* growth of approximately 50%
  • Adjusted Diluted EPS* growth of approximately 20%

*See “Use of Non-GAAP Financial Measures” below.

The financial targets above assume no change in the current economic environment and do not include the effects of any acquisitions that may take place during the year. Certain components of the financial targets provided are subject to quarterly fluctuations.

“We had a strong fourth quarter, well ahead of our internal plan, which provides us a nice ramp into the year,” said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer. “All of our areas of business are currently improving, we have record levels of funded backlog, and we expect to achieve significant growth in revenue and earnings in 2022.”

Fourth Quarter 2021 Financial Results

Consolidated contract revenue decreased $4.7 million, or 4.8%, in the fourth quarter of fiscal year 2021, while Net Revenue increased $1.1 million, or 2.2%, in the fourth quarter of fiscal 2021 compared to the same period last year (see “Use of Non-GAAP Financial Measures” below). Lower construction management revenues were offset by increased revenues from the restarted LADWP program and higher engineering and consulting revenue. The shift in revenue mix accounts for an increase in gross profit margin to 37.7% of consolidated contract revenue for the fourth quarter of fiscal year 2021 compared to gross profit margin of 35.6% for the same period last year.

Net loss was $0.9 million, or $(0.07) per diluted share, for the fourth quarter of fiscal year 2021, as compared to net loss of $4.0 million, or $(0.33) per diluted share, for the same period last year. Adjusted Net Income (see “Use of Non-GAAP Financial Measures” below) for the fourth quarter of fiscal year 2021 was $6.0 million, or $0.47 per diluted share, as compared to Adjusted Net Income of $5.6 million, or $0.46 per diluted share, for the same period last year.

Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below) was $9.4 million for the fourth quarter of 2021 compared to $8.6 million for the same period last year.

Fiscal Year 2021 Financial Results

Consolidated contract revenue decreased $37.2 million, or 9.5%, in fiscal year 2021 compared to fiscal year 2020, primarily due to decreased contract revenues from our construction management activities and the impact of having one fewer week in fiscal 2021 as compared to fiscal 2020, partially offset by increased planning and advisory revenues including software licensing.

Despite the reduction in contract revenue, Net Revenue increased $7.0 million, or 3.6%, in fiscal year 2021 compared to fiscal year 2020, primarily due to changes in the mix of revenues.

The change in the mix of revenue sources allowed direct costs of consolidated contract revenue to decrease faster than the reduction in contract revenue resulting in a $6.5 million, or 5.0% increase in gross profit for the year.

Net loss was $8.4 million for fiscal 2021, as compared to a net loss of $14.5 million for fiscal 2020 due primarily to the increased net revenue and gross profit margin, along with lower operating expenses.

Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below) was $27.5 million for fiscal year 2021 compared to $28.1 million in fiscal year 2020.

Liquidity and Capital Resources

As of December 31, 2021, cash and cash equivalents totaled $11.2 million. Cash flows provided by operating activities were $9.8 million for fiscal 2021, as compared to cash flows provided by operating activities of $47.0 million for fiscal 2020. Fiscal 2020 cash flows were favorably impacted by the reduction in working capital requirements due to the program suspensions resulting from Covid-19 mandates. Cash flows in 2021 were impacted by increased demand for working capital related to the resumption of utility programs that were suspended in 2020 and start-up costs associated with certain new contract awards.

As of December 31, 2021, there was $99.0 million outstanding under our term loan credit facilities. We had no borrowings under our revolving credit facility with $50.0 million in available capacity. We also had a Delayed Draw Term Loan facility with $20.0 million available for draw upon satisfaction of certain covenants. As a result of forecasted increased working capital requirements related to our $781 million in California Investor Owned Utility Contracts and other organic growth, on March 8, 2022, we amended our credit agreement to, among other things, draw the remaining $20 million available under the Delayed Draw Term Loan facility and adjust certain covenants to ensure an adequate margin for compliance obligations through fiscal year 2022. We believe that we have adequate resources and liquidity to fund cash requirements and debt repayments for at least the next 12 months.​

Fourth Quarter 2021 Conference Call

Willdan will be hosting a conference call related to fourth quarter earnings today, March 10, 2022, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 888-394-8218 approximately 10 minutes prior to the scheduled start time and enter confirmation code 4635283. The conference call will be webcast simultaneously on Willdan’s website at ir.willdangroup.com/events-presentations.

A replay of the conference call will be available until March 24, 2022 by calling 888-203-1112 and entering confirmation code 4635283.

An Investor Report containing supplemental financial information can also be accessed on the home page of Willdan’s investor relations website.

About Willdan Group, Inc.

Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com.

Use of Non-GAAP Financial Measures

“Net Revenue,” defined as contract revenue as reported in accordance with GAAP minus subcontractor services and other direct costs, is a non-GAAP financial measure, Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with U.S. generally accepted accounting principles (“GAAP”) and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for 2022 as reported in accordance with GAAP to targeted Net Revenues for fiscal 2022, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs have been 43.8% and 43.0% of contract revenue for the quarter ended December 31, 2021 and fiscal year 2021 and 47.6% and 50.2% for the quarter ended January 1, 2021 and fiscal year 2020, respectively.

“Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, transaction costs and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes.

Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital, stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release.

“Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, interest accretion and transaction costs, each net of tax, is a non-GAAP financial measure.

“Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, transaction costs, and deferred tax valuation, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release.

Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. 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 revenue, net income and diluted EPS.

Forward Looking Statements

Statements in this press release that are not purely historical, including statements regarding Willdan’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, as amended, including statements regarding the impact of Covid-19 on Willdan’s business, Willdan’s ability to capitalize on increased energy efficiency spending in large markets and expected benefits from its acquisitions. All statements other than statements of historical fact included in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties including, but not limited to, the extent to which the Covid-19 pandemic and measures taken to contain its spread ultimately impact Willdan’s business, results of operation and financial condition, including the speed with which its various direct install programs for small businesses are able to resume normal operations following government mandated shutdowns and phased re-openings. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets, Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes, Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy, Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreement, Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures, and Willdan’s ability to attract and retain managerial, technical, and administrative talent.

All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended January 1, 2021, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law.

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

 

 

 

 

 

 

 

 

 

 

December 31,

 

January 1,

 

 

 

2021

 

2021

 

Assets

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,221

 

 

$

28,405

 

 

Accounts receivable, net of allowance for doubtful accounts of $1,115 and $2,127 at December 31, 2021 and January 1, 2021, respectively

 

 

67,211

 

 

 

53,104

 

 

Contract assets

 

 

59,288

 

 

 

62,426

 

 

Other receivables

 

 

6,267

 

 

 

6,405

 

 

Prepaid expenses and other current assets

 

 

4,972

 

 

 

5,564

 

 

Total current assets

 

 

148,959

 

 

 

155,904

 

 

Equipment and leasehold improvements, net

 

 

16,757

 

 

 

12,506

 

 

Goodwill

 

 

130,124

 

 

 

130,124

 

 

Right-of-use assets

 

 

15,177

 

 

 

20,130

 

 

Other intangible assets, net

 

 

52,713

 

 

 

64,256

 

 

Other assets

 

 

13,843

 

 

 

5,993

 

 

Deferred income taxes, net

 

 

16,849

 

 

 

14,111

 

 

Total assets

 

$

394,422

 

 

$

403,024

 

 

Liabilities and Stockholders’ Equity

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

36,672

 

 

$

41,372

 

 

Accrued liabilities

 

 

35,680

 

 

 

34,455

 

 

Contingent consideration payable

 

 

10,206

 

 

 

12,321

 

 

Contract liabilities

 

 

13,499

 

 

 

7,434

 

 

Notes payable

 

 

15,036

 

 

 

14,996

 

 

Finance lease obligations

 

 

539

 

 

 

248

 

 

Lease liability

 

 

5,575

 

 

 

5,844

 

 

Total current liabilities

 

 

117,207

 

 

 

116,670

 

 

Contingent consideration payable

 

 

832

 

 

 

2,999

 

 

Notes payable

 

 

85,538

 

 

 

98,178

 

 

Finance lease obligations, less current portion

 

 

778

 

 

 

236

 

 

Lease liability, less current portion

 

 

10,768

 

 

 

15,649

 

 

Other noncurrent liabilities

 

 

78

 

 

 

128

 

 

Total liabilities

 

 

215,201

 

 

 

233,860

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding

 

 

 

 

 

 

 

Common stock, $0.01 par value, 40,000 shares authorized; 12,804 and 12,160 shares issued and outstanding at December 31, 2021 and January 1, 2021, respectively

 

 

128

 

 

 

122

 

 

Additional paid-in capital

 

 

167,032

 

 

 

149,014

 

 

Accumulated other comprehensive loss

 

 

(38

)

 

 

(488

)

 

Retained earnings

 

 

12,099

 

 

 

20,516

 

 

Total stockholders’ equity

 

 

179,221

 

 

 

169,164

 

 

Total liabilities and stockholders’ equity

 

$

394,422

 

 

$

403,024

 

 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

January 1,

 

December 31,

 

January 1,

 

 

2021

 

2021

 

2021

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

92,218

 

 

$

96,897

 

 

$

353,755

 

 

$

390,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of contract revenue (inclusive of directly related depreciation and amortization):

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

17,116

 

 

 

16,252

 

 

 

65,648

 

 

 

65,149

 

Subcontractor services and other direct costs

 

 

40,373

 

 

 

46,143

 

 

 

152,233

 

 

 

196,438

 

Total direct costs of contract revenue

 

 

57,489

 

 

 

62,395

 

 

 

217,881

 

 

 

261,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages, payroll taxes and employee benefits

 

 

16,282

 

 

 

17,956

 

 

 

73,812

 

 

 

71,229

 

Facilities and facility related

 

 

2,523

 

 

 

2,484

 

 

 

9,896

 

 

 

10,481

 

Stock-based compensation

 

 

2,214

 

 

 

3,310

 

 

 

16,563

 

 

 

16,113

 

Depreciation and amortization

 

 

4,468

 

 

 

4,419

 

 

 

17,146

 

 

 

18,743

 

Other

 

 

8,115

 

 

 

12,051

 

 

 

27,148

 

 

 

29,054

 

Total general and administrative expenses

 

 

33,602

 

 

 

40,220

 

 

 

144,565

 

 

 

145,620

 

Income (Loss) from operations

 

 

1,127

 

 

 

(5,718

)

 

 

(8,691

)

 

 

(16,227

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(769

)

 

 

(1,085

)

 

 

(3,869

)

 

 

(5,068

)

Other, net

 

 

122

 

 

 

914

 

 

 

156

 

 

 

1,626

 

Total other expense, net

 

 

(647

)

 

 

(171

)

 

 

(3,713

)

 

 

(3,442

)

Income (Loss) before income taxes

 

 

480

 

 

 

(5,889

)

 

 

(12,404

)

 

 

(19,669

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

1,370

 

 

 

(1,892

)

 

 

(3,987

)

 

 

(5,173

)

Net income (loss)

 

 

(890

)

 

 

(3,997

)

 

 

(8,417

)

 

 

(14,496

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on derivative contracts

 

 

107

 

 

 

114

 

 

 

450

 

 

 

(92

)

Comprehensive income (loss)

 

$

(783

)

 

$

(3,883

)

 

$

(7,967

)

 

$

(14,588

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.07

)

 

$

(0.33

)

 

$

(0.68

)

 

$

(1.23

)

Diluted

 

$

(0.07

)

 

$

(0.33

)

 

$

(0.68

)

 

$

(1.23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

12,660

 

 

 

12,011

 

 

 

12,458

 

 

 

11,793

 

Diluted

 

 

12,660

 

 

 

12,011

 

 

 

12,458

 

 

 

11,793

 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

 

 

Year Ended

 

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

(8,417

)

 

$

(14,496

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

17,146

 

 

 

18,743

 

Deferred income taxes, net

 

 

(2,738

)

 

 

(5,209

)

(Gain) loss on sale/disposal of equipment

 

 

(24

)

 

 

(15

)

Provision for doubtful accounts

 

 

102

 

 

 

1,330

 

Stock-based compensation

 

 

16,563

 

 

 

16,113

 

Accretion and fair value adjustments of contingent consideration

 

 

2,333

 

 

 

7,707

 

Changes in operating assets and liabilities, net of effects from business acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

(14,209

)

 

 

3,070

 

Contract assets

 

 

3,138

 

 

 

35,498

 

Other receivables

 

 

138

 

 

 

(1,192

)

Prepaid expenses and other current assets

 

 

828

 

 

 

577

 

Other assets

 

 

(7,849

)

 

 

9,955

 

Accounts payable

 

 

(4,700

)

 

 

7,372

 

Accrued liabilities

 

 

1,625

 

 

 

(34,509

)

Contract liabilities

 

 

6,065

 

 

 

1,871

 

Right-of-use assets

 

 

(197

)

 

 

210

 

Net cash (used in) provided by operating activities

 

 

9,804

 

 

 

47,025

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of equipment and leasehold improvements

 

 

(8,500

)

 

 

(5,076

)

Proceeds from sale of equipment

 

 

46

 

 

 

17

 

Net cash used in investing activities

 

 

(8,454

)

 

 

(5,059

)

Cash flows from financing activities:

 

 

 

 

 

 

Payments on contingent consideration

 

 

(6,615

)

 

 

(1,433

)

Payments on notes payable

 

 

(1,909

)

 

 

(205

)

Payments on debt issuance costs

 

 

 

 

 

(327

)

Proceeds from notes payable

 

 

2,074

 

 

 

1,140

 

Borrowings under term loan facility and line of credit

 

 

 

 

 

24,000

 

Repayments under term loan facility and line of credit

 

 

(13,000

)

 

 

(42,000

)

Principal payments on finance leases

 

 

(545

)

 

 

(549

)

Proceeds from stock option exercise

 

 

1,924

 

 

 

1,082

 

Proceeds from sales of common stock under employee stock purchase plan

 

 

2,655

 

 

 

2,224

 

Cash used to pay taxes on stock grants

 

 

(3,117

)

 

 

(2,946

)

Restricted Stock Award and Units

 

 

(1

)

 

 

1

 

Net cash used in financing activities

 

 

(18,534

)

 

 

(19,013

)

Net increase (decrease) in cash and cash equivalents

 

 

(17,184

)

 

 

22,953

 

Cash and cash equivalents at beginning of period

 

 

28,405

 

 

 

5,452

 

Cash and cash equivalents at end of period

 

$

11,221

 

 

$

28,405

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Interest

 

$

3,545

 

 

$

5,031

 

Income taxes

 

 

(1,616

)

 

 

174

 

Supplemental disclosures of noncash investing and financing activities:

 

 

 

 

 

 

Other working capital adjustment

 

 

 

 

 

1,179

 

Equipment acquired under finance leases

 

 

1,376

 

 

 

467

 

Willdan Group, Inc. and Subsidiaries

Reconciliation of GAAP Revenue to Net Revenue

(in thousands)

(Non-GAAP Measure)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

January 1,

 

December 31,

 

January 1,

 

 

2021

 

2021

 

2021

 

2021

Consolidated

 

 

 

 

 

 

 

 

Contract revenue

 

$

92,218

 

$

96,897

 

$

353,755

 

$

390,980

Subcontractor services and other direct costs

 

 

40,373

 

 

46,143

 

 

152,233

 

 

196,438

Net Revenue

 

$

51,845

 

$

50,754

 

$

201,522

 

$

194,542

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy segment

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

76,407

 

$

81,784

 

$

286,384

 

$

324,178

Subcontractor services and other direct costs

 

 

40,239

 

 

44,566

 

 

146,269

 

 

186,824

Net Revenue

 

$

36,168

 

$

37,218

 

$

140,115

 

$

137,354

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineering and Consulting segment

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

15,811

 

$

15,113

 

$

67,371

 

$

66,802

Subcontractor services and other direct costs

 

 

134

 

 

1,577

 

 

5,964

 

 

9,614

Net Revenue

 

$

15,677

 

$

13,536

 

$

61,407

 

$

57,188

Willdan Group, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted EBITDA

(in thousands)

(Non-GAAP Measure)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

January 1,

 

December 31,

 

January 1,

 

 

2021

 

2021

 

2021

 

2021

Net income (loss)

 

$

(890

)

 

$

(3,997

)

 

$

(8,417

)

 

$

(14,496

)

Interest expense

 

 

769

 

 

 

1,085

 

 

 

3,869

 

 

 

5,068

 

Income tax expense (benefit)

 

 

1,370

 

 

 

(1,892

)

 

 

(3,987

)

 

 

(5,173

)

Stock-based compensation

 

 

2,214

 

 

 

3,310

 

 

 

16,563

 

 

 

16,113

 

Interest accretion (1)

 

 

1,473

 

 

 

5,648

 

 

 

2,333

 

 

 

7,707

 

Depreciation and amortization

 

 

4,468

 

 

 

4,419

 

 

 

17,146

 

 

 

18,743

 

Transaction costs (2)

 

 

 

 

 

13

 

 

 

43

 

 

 

179

 

(Gain) Loss on sale of equipment

 

 

13

 

 

 

 

 

 

(24

)

 

 

(15

)

Adjusted EBITDA

 

$

9,417

 

 

$

8,586

 

 

$

27,526

 

 

$

28,126

 


(1)

Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration.

(2)

Transaction costs represents acquisition and acquisition related costs.

Willdan Group, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS

(in thousands, except per share amounts)

(Non-GAAP Measure)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

January 1,

 

December 31,

 

January 1,

 

 

2021

 

2021

 

2021

 

2021

Net income (loss)

 

$

(890

)

 

$

(3,997

)

 

$

(8,417

)

 

$

(14,496

)

Adjustment for stock-based compensation

 

 

2,214

 

 

 

3,310

 

 

 

16,563

 

 

 

16,113

 

Tax effect of stock-based compensation

 

 

(278

)

 

 

(691

)

 

 

(2,079

)

 

 

(3,366

)

Adjustment for intangible amortization

 

 

2,886

 

 

 

3,136

 

 

 

11,543

 

 

 

13,657

 

Tax effect of intangible amortization

 

 

(362

)

 

 

(655

)

 

 

(1,449

)

 

 

(2,853

)

Adjustment for interest accretion

 

 

1,473

 

 

 

5,648

 

 

 

2,333

 

 

 

7,707

 

Tax effect on interest accretion

 

 

(185

)

 

 

(1,180

)

 

 

(293

)

 

 

(1,610

)

Adjustment for transaction costs

 

 

 

 

 

13

 

 

 

43

 

 

 

179

 

Tax effect of transaction costs

 

 

 

 

 

(3

)

 

 

(5

)

 

 

(37

)

Adjustment for deferred tax valuation

 

 

1,105

 

 

 

 

 

 

1,105

 

 

 

 

Tax effect on deferred tax valuation

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

$

5,963

 

 

$

5,581

 

 

$

19,344

 

 

$

15,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted-average shares outstanding

 

 

12,660

 

 

 

12,011

 

 

 

12,458

 

 

 

11,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

$

(0.07

)

 

$

(0.33

)

 

$

(0.68

)

 

$

(1.23

)

Impact of adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation per share

 

 

0.16

 

 

 

0.28

 

 

 

1.33

 

 

 

1.37

 

Tax effect of stock-based compensation per share

 

 

(0.02

)

 

 

(0.07

)

 

 

(0.17

)

 

 

(0.29

)

Intangible amortization per share

 

 

0.23

 

 

 

0.26

 

 

 

0.93

 

 

 

1.16

 

Tax effect of intangible amortization per share

 

 

(0.03

)

 

 

(0.05

)

 

 

(0.12

)

 

 

(0.24

)

Adjustment for interest accretion

 

 

0.12

 

 

 

0.47

 

 

 

0.19

 

 

 

0.65

 

Tax effect on interest accretion

 

 

(0.01

)

 

 

(0.10

)

 

 

(0.02

)

 

 

(0.14

)

Transaction costs per share

 

 

 

 

 

 

 

 

0.00

 

 

 

0.02

 

Tax effect of transaction costs per share

 

 

 

 

 

 

 

 

(0.00

)

 

 

 

Deferred tax valuation per share

 

 

0.09

 

 

 

 

 

 

0.09

 

 

 

 

Tax effect on deferred tax valuation per share

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted EPS

 

$

0.47

 

 

$

0.46

 

 

$

1.55

 

 

$

1.30

 

 

Willdan Group, Inc.
Al Kaschalk
VP Investor Relations
Tel: 310-922-5643
akaschalk@willdan.com

Source: Willdan Group, Inc.