UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 9, 2013

 


 

WILLDAN GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-33076

 

14-1951112

(State of other jurisdiction

 

(Commission File Number)

 

(IRS Employer

of incorporation)

 

 

 

Identification No.)

 

2401 East Katella Avenue, Suite 300, Anaheim, California 92806

(Address of Principal Executive Offices)

 

Registrant’s telephone number, including area code: (800) 424-9144

 

Not Applicable

(Former name or former address, if changed since last report)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

o            Soliciting material pursuant to Rule 14A-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02.

Results of Operation and Financial Condition

 

Willdan Group, Inc. (“Willdan”) issued a press release on May 9, 2013. The press release announced its financial results for the first quarter ended March 29, 2013. The press release is filed as Exhibit 99.1 and is hereby incorporated by reference in its entirety. The information in this Form 8-K and the exhibit attached hereto is being furnished (not filed) under Item 2.02 of Form 8-K.

 

Item 9.01

Financial Statements and Exhibits

 

 

(d)

Exhibits.

 

 

 

99.1

Press Release of Willdan Group, Inc. dated May 9, 2013 (financial results for the first quarter ended March 29, 2013).

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

WILLDAN GROUP, INC.

 

 

 

 

 

 

Date: May 9, 2013

By:

/s/ Kimberly D. Gant

 

 

Kimberly D. Gant

 

 

Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Document

 

 

 

99.1

 

Press Release of Willdan Group, Inc. dated May 9, 2013 (Financial results for the first quarter ended March 29, 2013)

 

4


Exhibit 99.1

 

 

Willdan Reports First Quarter 2013 Financial Results

 

ANAHEIM, Calif., May 9, 2013 (BUSINESS WIRE) — Willdan Group, Inc. (“Willdan”) (NASDAQ:WLDN), today announced financial results for its first quarter ended March 29, 2013.

 

For the first quarter of 2013, Willdan reported total contract revenue of $21.4 million and net income of $0.4 million, or $0.05 per share.

 

Tom Brisbin, Willdan’s Chief Executive Officer, stated: While our first quarter revenue was lower than last year, we generated positive cash flow and a profit for the quarter. We continue to expect a ramp up in our energy business by the end of the second quarter which will positively impact our results for the remainder of the year.”

 

First Quarter 2013 Results

 

For the first quarter of fiscal 2013, revenue was $21.4 million, down $4.1 million, or 16.0%, from revenue of $25.5 million for the comparable period last year. On a sequential basis, revenue was down $1.6 million, or 6.8%, from the fourth quarter of 2012. Income from operations was $0.5 million for the first quarter of fiscal 2013, as compared to a loss from operations of $2.3 million for the comparable period last year. On a sequential basis, income from operations was $0.5 million as compared to $1.2 million for the fourth quarter of 2012.

 

Net income was $0.4 million for the first quarter of fiscal 2013, as compared to a net loss of $1.4 million for the comparable period last year and net income of $0.3 million for the fourth quarter of 2012.

 

Basic and diluted earnings per share for the first quarter of fiscal 2013 were $0.05 as compared to basic and diluted loss per share of $0.19 for the comparable period last year.

 

Willdan generated $1.0 million in cash flow from operations in the first quarter of fiscal 2013.

 

i



 

 

 

Three Months Ended

 

In thousands (except per share data)

 

March 29,
 2013

 

March 30,
 2012

 

Revenue

 

$

21,385

 

$

25,468

 

 

 

 

 

 

 

Income (loss) from operations

 

457

 

(2,317

)

Interest income

 

3

 

1

 

Interest expense

 

(27

)

(22

)

Other, net

 

15

 

 

Income tax expense (benefit)

 

49

 

(927

)

Net income (loss)

 

$

399

 

$

(1,411

)

 

 

 

 

 

 

Basic and diluted earnings (loss) per share

 

$

0.05

 

$

(0.19

)

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

7,335

 

7,291

 

Diluted

 

7,382

 

7,291

 

 

Use of Non-GAAP Financial Measures

 

Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure its operating performance. Willdan defines Adjusted EBITDA as net income (loss) plus net interest expense, income tax expense (benefit), depreciation and amortization, lease abandonment expense, net and other non-recurring income and expense items occurring in such period. 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 operating income and net income. Willdan believes Adjusted EBITDA enables management to separate non-recurring 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 the impact of certain non-recurring income and expense items from its operational results, which may facilitate comparison of its 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.

 

Adjusted EBITDA increased $2.8 million to $0.7 million for the three months ended March 29, 2013 from $(2.1) million for the comparable period last year.

 

ii



 

The following is a reconciliation of net income (loss) to Adjusted EBITDA:

 

 

 

Three Months Ended

 

In thousands

 

March 29,
 2013

 

March 30,
 2012

 

Net income (loss)

 

$

399

 

$

(1,411

)

Interest income

 

(3

)

(1

)

Interest expense

 

27

 

22

 

Income tax expense (benefit)

 

49

 

(927

)

Depreciation and amortization

 

166

 

191

 

Lease abandonment expense, net

 

13

 

4

 

Adjusted EBITDA

 

$

651

 

$

(2,122

)

 

Liquidity and Capital Resources

 

Willdan had $10.4 million in cash and cash equivalents at March 29, 2013, compared with $10.0 million at December 28, 2012. Willdan has a $5.0 million revolving line of credit with Wells Fargo Bank, National Association (“Wells Fargo”), with $3.0 million in outstanding borrowings at March 29, 2013.

 

On May 7, 2013, Willdan amended its line of credit with Wells Fargo, effective as of April 1, 2013, and extended the expiration date of the line of credit to April 1, 2014. In connection with the amendment, Wells Fargo also waived all of Willdan’s existing defaults under the line of credit.  The line of credit amendment, among other things, modified the financial covenants under the line of credit by eliminating the net income, funded debt to EBITDA and asset coverage covenants, two of which Willdan was in breach of as of March 29, 2013, and replacing them with a minimum tangible net worth requirement.

 

Conference Call and Webcast

 

Chief Executive Officer Thomas Brisbin and Chief Financial Officer Kimberly Gant plan to host a conference call today, May 9, 2013 at 5:00 p.m. Eastern/2:00 p.m. Pacific, to discuss Willdan’s financial results.

 

Interested parties may participate in the conference call by dialing 877-941-6010 (480-629-9866 for international callers). When prompted, ask for the “Willdan Group, Inc., First Quarter 2013 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 23, 2013, by dialing 800-406-7325 (303-590-3030 for international callers).  The replay access code is 4617586. The webcast replay will be archived for 12 months.

 

About Willdan Group, Inc.

 

Founded in 1964, Willdan is a provider of professional technical and consulting services to public agencies at all levels of government, public and private utilities and commercial and industrial firms. Willdan provides a broad range of services to clients throughout the United States, including engineering and planning, energy efficiency and sustainability, economic and financial consulting, and national preparedness and interoperability. For additional information, visit Willdan’s website at www.willdan.com.

 

iii



 

Forward-Looking Statements

 

Safe Harbor Statement: Statements in this press release which 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 expand its services or meet the needs of customers in markets in which it operates. 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 for the year ended December 28, 2012 filed on March 26, 2013 and the Quarterly Report on Form 10-Q for the quarter ended March 29, 2013 filed on May 9, 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.

 

iv



 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

March 29,
2013

 

December 28,
2012

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

10,406,000

 

$

10,006,000

 

Accounts receivable, net of allowance for doubtful accounts of $443,000 and $303,000 at March 29, 2013 and December 28, 2012, respectively

 

12,074,000

 

15,484,000

 

Costs and estimated earnings in excess of billings on uncompleted contracts

 

11,139,000

 

9,860,000

 

Other receivables

 

101,000

 

95,000

 

Prepaid expenses and other current assets

 

1,256,000

 

1,782,000

 

Total current assets

 

34,976,000

 

37,227,000

 

 

 

 

 

 

 

Equipment and leasehold improvements, net

 

887,000

 

979,000

 

Other intangible assets, net

 

3,000

 

12,000

 

Other assets

 

300,000

 

307,000

 

Deferred income taxes, net of current portion

 

3,452,000

 

3,452,000

 

Total assets

 

$

39,618,000

 

$

41,977,000

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Excess of outstanding checks over bank balance

 

$

888,000

 

$

1,188,000

 

Borrowings under line of credit

 

3,000,000

 

3,000,000

 

Accounts payable

 

4,431,000

 

6,983,000

 

Accrued liabilities

 

5,760,000

 

5,306,000

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

3,312,000

 

3,419,000

 

Current portion of notes payable

 

382,000

 

628,000

 

Current portion of capital lease obligations

 

144,000

 

152,000

 

Current portion of deferred income taxes

 

3,452,000

 

3,452,000

 

Total current liabilities

 

21,369,000

 

24,128,000

 

 

 

 

 

 

 

Capital lease obligations, less current portion

 

96,000

 

124,000

 

Deferred lease obligations

 

316,000

 

374,000

 

Total liabilities

 

21,781,000

 

24,626,000

 

 

 

 

 

 

 

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: 7,353,000 and 7,335,000 shares issued and outstanding at March 29, 2013 and December 28, 2012, respectively

 

74,000

 

73,000

 

Additional paid-in capital

 

34,509,000

 

34,423,000

 

Accumulated deficit

 

(16,746,000

)

(17,145,000

)

Total stockholders’ equity

 

17,837,000

 

17,351,000

 

Total liabilities and stockholders’ equity

 

$

39,618,000

 

$

41,977,000

 

 

v



 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 29,

 

March 30,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Contract revenue

 

$

21,385,000

 

$

25,468,000

 

 

 

 

 

 

 

Direct costs of contract revenue (exclusive of depreciation and amortization shown separately below):

 

 

 

 

 

Salaries and wages

 

5,843,000

 

5,957,000

 

Subconsultant services and other direct costs

 

6,191,000

 

11,237,000

 

Total direct costs of contract revenue

 

12,034,000

 

17,194,000

 

 

 

 

 

 

 

General and administrative expenses:

 

 

 

 

 

Salaries and wages, payroll taxes and employee benefits

 

5,538,000

 

6,428,000

 

Facilities and facilities related

 

1,188,000

 

1,195,000

 

Stock-based compensation

 

50,000

 

54,000

 

Lease abandonment, net

 

13,000

 

4,000

 

Depreciation and amortization

 

149,000

 

174,000

 

Other

 

1,956,000

 

2,736,000

 

Total general and administrative expenses

 

8,894,000

 

10,591,000

 

Income (loss) from operations

 

457,000

 

(2,317,000

)

 

 

 

 

 

 

Other (expense) income, net:

 

 

 

 

 

Interest income

 

3,000

 

1,000

 

Interest expense

 

(27,000

)

(22,000

)

Other, net

 

15,000

 

 

Total other expense, net

 

(9,000

)

(21,000

)

Income (loss) before income taxes

 

448,000

 

(2,338,000

)

 

 

 

 

 

 

Income tax expense (benefit)

 

49,000

 

(927,000

)

Net income (loss)

 

$

399,000

 

$

(1,411,000

)

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

Basic and diluted

 

$

0.05

 

$

(0.19

)

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

Basic

 

7,335,000

 

7,291,000

 

Diluted

 

7,382,000

 

7,291,000

 

 

vi



 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 29,
2013

 

March 30,
2012

 

Cash flows from operating activities:

 

 

 

 

 

Net income (loss)

 

$

399,000

 

$

(1,411,000

)

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

 

 

 

 

 

Depreciation and amortization

 

166,000

 

191,000

 

Lease abandonment expense, net

 

13,000

 

4,000

 

(Gain) loss on sale of equipment

 

(5,000

)

 

Provision for doubtful accounts

 

65,000

 

58,000

 

Stock-based compensation

 

50,000

 

54,000

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

3,345,000

 

2,174,000

 

Costs and estimated earnings in excess of billings on uncompleted contracts

 

(1,279,000

)

(3,292,000

)

Other receivables

 

(6,000

)

98,000

 

Prepaid expenses and other current assets

 

526,000

 

29,000

 

Other assets

 

7,000

 

(67,000

)

Accounts payable

 

(2,552,000

)

2,314,000

 

Accrued liabilities

 

454,000

 

(1,371,000

)

Billings in excess of costs and estimated earnings on uncompleted contracts

 

(107,000

)

435,000

 

Deferred lease obligations

 

(71,000

)

(40,000

)

Net cash provided by (used in) operating activities

 

1,005,000

 

(824,000

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchase of equipment and leasehold improvements

 

(65,000

)

(73,000

)

Proceeds from sale of equipment

 

5,000

 

 

Net cash used in investing activities

 

(60,000

)

(73,000

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Changes in excess of outstanding checks over bank balance

 

(300,000

)

390,000

 

Payments on notes payable

 

(246,000

)

(257,000

)

Borrowings under line of credit

 

 

5,469,000

 

Repayments on line of credit

 

 

(2,725,000

)

Principal payments on capital lease obligations

 

(36,000

)

(48,000

)

Proceeds from stock option exercise

 

 

10,000

 

Proceeds from sales of common stock under employee stock purchase plan

 

37,000

 

65,000

 

Net cash (used in) provided by financing activities

 

(545,000

)

2,904,000

 

Net increase in cash and cash equivalents

 

400,000

 

2,007,000

 

Cash and cash equivalents at beginning of the period

 

10,006,000

 

3,001,000

 

Cash and cash equivalents at end of the period

 

$

10,406,000

 

$

5,008,000

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

27,000

 

$

21,000

 

Income taxes

 

49,000

 

17,000

 

 

 

 

 

 

 

Supplemental disclosures of noncash investing and financing activities:

 

 

 

 

 

Equipment acquired under capital lease obligations

 

$

 

$

10,000

 

 

vii



 

SOURCE:  Willdan Group, Inc.

 

Contact:

 

Willdan Group, Inc.

Kimberly Gant

Chief Financial Officer

Tel: 714-940-6300

kgant@willdan.com

 

or

 

Financial Profiles, Inc.

Moira Conlon

Tel: 310-478-2700 x11

mconlon@finprofiles.com

 

viii