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Willdan Outlines Strategy and Targets for Continued Growth and Profitability
Below are Willdan's financial targets for the next three years:
- Annual contract revenue growth of up to 15% (organic and acquisitive growth combined)
- Gross margin of 40% to 45%
- Adjusted EBITDA margin of 5% to 10%
- Accounts receivable days outstanding of 70 to 75
"Over the past several years, we have diversified our service offerings
while expanding our geographic reach," said Willdan's Chief Executive
Officer
The majority of growth will come from our two major business segments - Engineering Services and Energy Efficiency Services - which, in 2013, cumulatively accounted for 83% of our total revenue. In our Energy Efficiency Services segment we will benefit from our demonstrated track record of implementing successful energy efficiency projects that reduce expenses, energy requirements, and carbon footprint. In our Engineering Services segment, our team has done an outstanding job of leveraging our capabilities to win services contracts for large, long-term projects that will drive growth and provide better visibility into project backlog," he added.
"We have also made good headway in diversifying projects and expanding into new geographies with our homeland security and public finance services businesses. In our Public Finance Services segment, we have focused on exporting our public finance expertise to new end markets and geographies in recent years. In our Homeland Security Services segment, protection for civil infrastructure and public security measures are high priorities at all levels of the government, creating strong demand for our emergency response training solutions.
Financially, we have made great strides in reducing our operating expenses and accelerating our cash conversion cycle. We remain focused on continuing expense reductions companywide—from managing contract profitably at the project level to renegotiating more favorable leases for buildings and equipment.
We have a strong balance sheet to support organic growth as well as the
potential for selective tuck-in acquisitions that could strategically
expand our geographic footprint, broaden our service offerings and
improve our competitive position," Brisbin continued. "All of this gives
me confidence that our net income for 2014 will exceed the
As of March 28, 2014, Willdan's cash and cash equivalents totaled
Business Growth Drivers
Key drivers of Willdan's projected growth include:
An expanding market for energy services: The nation's large and
growing market for energy services is being driven by high energy costs,
growing global environmental concerns, increased social awareness, and
adoption of green building standards. The public sector must comply with
legislated energy reduction mandates, and the private sector is
self-imposing sustainability goals and initiatives. All of these factors
are driving new opportunities for energy efficiency and green building.
The accelerating trend toward outsourcing: Following the economic
recession, cities, counties, state and local government agencies became
resource constrained from both a human capital and financial
perspective. Uniquely qualified to provide outsourced staffing to public
agencies,
Participation in larger and longer-term opportunities:
Geographic expansion and service diversification:
Pursuing strategic tuck-in acquisitions: The markets in which
Leveraging centralized business development to cross-sell our
services to existing clients:
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental measure used by
About
Celebrating its 50th year of business, Willdan provides outsourced professional technical and consulting services to public agencies, public and private utilities, and commercial and industrial firms throughout the United States. Willdan benefits from well-established relationships, industry-leading expertise and a solid reputation for delivering projects on time and on budget. The company's service offerings span a broad set of complementary disciplines that include engineering and planning, energy efficiency and sustainability, financial and economic consulting, and national preparedness. Willdan has crafted this set of integrated services so that, in the face of an evolving environment—whether economic, natural, or built—Willdan can continue to extend the reach and resources of its clients. For additional information, visit Willdan's website at www.willdan.com.
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. The forward-looking statements involve risks and uncertainties including, but not limited to, the risk that Willdan will not be able to meet its financial targets, expand its existing services or successfully locate and acquire potential acquisition candidates. It is important to note that Willdan'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. Willdan's business could be affected by a number of other factors, including the risk factors listed from time to time in Willdan's SEC reports including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 27, 2013. 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.
Chief Financial
Officer
Tel: 714-940-6300
smclaughlin@willdan.com
or
Investor/Media
Contact
Tel:
310-478-2700 x220
mconlon@finprofiles.com
Source:
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