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): November 12, 2015
WILLDAN GROUP, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
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001-33076 |
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14-1951112 |
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(State of other jurisdiction |
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(Commission File Number) |
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(IRS Employer |
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 November 12, 2015. The press release announced Willdan’s financial results for the third quarter ended October 2, 2015. 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 November 12, 2015 (financial results for the third quarter ended October 2, 2015).
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.
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WILLDAN GROUP, INC. | ||
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Date: November 12, 2015 |
By: |
/s/ Stacy B. McLaughlin | |
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Stacy B. McLaughlin | ||
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Chief Financial Officer | ||
EXHIBIT INDEX
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Exhibit No. |
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Document |
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99.1 |
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Press Release of Willdan Group, Inc. dated November 12, 2015 (Financial results for the third quarter ended October 2, 2015) |
Exhibit 99.1
Willdan Group Reports Third Quarter 2015 Financial Results
· Total Contract Revenue Increases 19% to $33.5 Million
· Earnings per Diluted Share of $0.10
Investment Community Conference Call Today at 5:00 p.m. Eastern Time
ANAHEIM, Calif. — November 12, 2015 — Willdan Group, Inc. (“Willdan”) (NASDAQ: WLDN), a provider of professional technical and consulting services, today reported financial results for its third quarter ended October 2, 2015, and provided a business update.
For the third quarter of 2015, Willdan reported total contract revenue of $33.5 million and net income of $0.8 million, or $0.10 per diluted share. For the nine months ended October 2, 2015, total contract revenue was $103.6 million and net income was $3.9 million, or $0.48 per diluted share.
“Our Engineering, Public Finance and Homeland Security segments each performed well during the third quarter, generating aggregate revenue growth of 7.3% over the prior year period,” said Tom Brisbin, Willdan’s Chief Executive Officer. “We have good momentum in these segments and we believe they will continue to be meaningful contributors to our overall growth. However, our Energy Efficiency Services segment revenue and income was below our expectations for the quarter. The weakness in Energy Efficiency was the result of poor project execution, and was not caused by slower customer spending or demand for our services. While these operational issues are being addressed, we anticipate that the poor project execution will have a residual impact in the fourth quarter. Notwithstanding the execution issues on a few programs, we continue to have a steady stream of new contract wins and we have a solid pipeline of work to drive growth and profitability in 2016.”
Third Quarter 2015 Financial Highlights
Total contract revenue for the third quarter of 2015 increased 18.9% to $33.5 million, as compared with $28.2 million for the third quarter of 2014. The increase was due to revenue growth in all four business segments. Contract revenue for the Energy Efficiency Services segment was $17.8 million, an increase of 31.4% from $13.6 million for the third quarter of 2014. The increase in Energy Efficiency Services contract revenue was attributable to the contribution of 360 Energy Engineers, LLC (“360 Energy”) and Abacus Resource Management Company (“Abacus”), which were acquired in January 2015. Excluding the incremental revenue from 360 Energy and Abacus, contract revenue declined $1.9 million in the third quarter of 2015 compared to the third quarter of 2014. As noted above, this decrease resulted from operational difficulties in project execution. Contract revenue for Engineering Services, Public Finance Services, and Homeland Security Services was $11.6 million, $3.3 million and $0.8 million, respectively, in the third quarter of 2015.
Direct costs of contract revenue were $21.0 million for the third quarter of 2015, compared with $16.5 million for the third quarter of 2014. Included in direct costs of contract revenue for the third quarter of 2015 was incremental direct costs of revenue of $5.0 million attributable to our acquisitions of 360 Energy and Abacus. Excluding the direct costs of contract revenue attributable to the acquisitions, direct costs of contract revenue decreased by approximately $0.5 million, as an increase in direct costs associated with Engineering Services was offset by a decrease in direct costs associated with Energy Efficiency Services.
Revenue, net of subcontractor costs, for the third quarter of 2015 increased 8.9% to $24.1 million from $22.2 million for the third quarter of 2014.
Total general and administrative expenses for the third quarter of 2015 increased by 20.4% to $10.9 million from $9.1 million for the prior year period, due primarily to higher expenses in the Energy Efficiency Services segment to support the year-over-year growth in contract revenues.
EBITDA (as defined below) was $2.0 million for the third quarter of 2015, compared with $2.8 million for the third quarter of 2014.
Income tax expense was $0.6 million for the third quarter of 2015, as compared to an income tax benefit of $1.5 million for the third quarter of 2014. The difference between income tax benefit for the third quarter of 2014 versus income tax expense for the third quarter of 2015 is primarily due to the recognition of an income tax benefit for net operating loss carryforwards that were fully utilized in 2014 and no longer available to offset taxable income this year.
Net income for the third quarter of 2015 was $0.8 million, or $0.10 per diluted share, compared with net income of $4.2 million, or $0.53 per diluted share, for the third quarter of 2014.
Nine Months 2015 Financial Highlights
Total contract revenue for the nine months ended October 2, 2015 increased 33.1% to $103.6 million, as compared with $77.8 million for the nine months ended September 26, 2014. The increase was due primarily to a 54.9% increase in contract revenue for the Energy Efficiency Services segment and a 14.8% increase in contract revenue for the Engineering Services segment. The growth in the Energy Efficiency Services segment was attributable to $18.5 million of contract revenue generated by 360 Energy and Abacus, as well as organic revenue growth. Contract revenue for Energy Efficiency Services, Engineering Services, Public Finance Services, and Homeland Security Services was $58.3 million, $33.9 million, $9.0 million and $2.5 million, respectively.
Direct costs of contract revenue were $63.7 million for the nine months ended October 2, 2015, compared with $46.0 million for the nine months ended September 26, 2014. Included in direct costs of contract revenue for the nine months ended October 2, 2015 was incremental direct costs of revenue of $13.8 million attributable to 360 Energy and Abacus. Excluding the increase in direct costs of contract revenue attributable to the acquisitions, direct costs of contract revenue increased primarily because of increases in direct costs for our Engineering, Energy Efficiency and Public Finance Services, partially offset by a decrease in direct costs for our Homeland Security Services segment.
Revenue, net of subcontractor costs, for the nine months ended October 2, 2015 increased 23% to $76.1 million from $61.8 million for the nine months ended September 26, 2014.
Total general and administrative expenses for the nine months ended October 2, 2015 increased by 26.5% to $32.9 million from $26.0 million for the prior year period, due primarily to higher expenses in the Energy Efficiency Services segment to support the year-over-year growth in contract revenues. As a percentage of contract revenue, total general and administrative expenses decreased to 31.7% of contract revenue for the nine months ended October 2, 2015 from 33.4% of contract revenue for the nine months ended September 26, 2014.
EBITDA (as defined below) was $8.4 million for the nine months ended October 2, 2015, as compared with $6.3 million for the first nine months of 2014.
Income tax expense was $2.9 million for the nine months ended October 2, 2015, as compared to an income tax benefit of $1.4 million for the nine months ended September 26, 2014. The difference between the income tax benefit for the first nine months of 2014 versus the income tax expense for the first nine months of 2015 is primarily due to the recognition of an income tax benefit for net operating loss carryforwards that were fully utilized in 2014 and no longer available to offset taxable income this year.
Net income for the nine months ended October 2, 2015 was $3.9 million, or $0.48 per diluted share, compared with net income of $7.4 million, or $0.96 per diluted share, for the nine months ended September 26, 2014.
Liquidity and Capital Resources
Willdan reported $16.0 million in cash and cash equivalents at October 2, 2015, as compared to $20.4 million at January 2, 2015. The reduction primarily resulted from the three acquisitions completed year to date. Willdan’s primary sources of liquidity are cash generated from operations and a revolving line of credit with BMO Harris Bank, N.A. Cash flows provided by operating activities were $4.9 million for the nine months ended October 2, 2015, compared with $5.8 million for the nine months ended September 26, 2014.
Outlook
Willdan expects revenue in 2015 to range between $130 million and $135 million, and expects a tax rate of approximately 42%. Willdan expects EBITDA in 2015 to be greater than $10 million.
Use of Non-GAAP Financial Measures
“Revenue, net of subcontractor costs,” a non-GAAP financial measure, is a supplemental measure that Willdan believes enhances investors’ ability to analyze our business trend and performance because it substantially measures the work performed by our employees. In the course of providing services, we routinely subcontract various services. Generally, these subcontractor costs are passed through to our clients and, in accordance with Generally Accepted Accounting Principles (GAAP) and industry practice, are included in our revenue when it is our contractual responsibility to procure or manage these activities. Because subcontractor services can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of our business trends. Accordingly, we segregate costs from revenue to promote a better understanding of our business by evaluating revenue exclusive of costs associated with external service providers. A reconciliation of contract revenue as reported in accordance with GAAP to revenues, net of subcontractor costs is provided at the end of this news release.
EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan defines EBITDA as net income (loss) plus interest expense (income), income tax expense (benefit), goodwill impairment and depreciation and amortization. EBITDA is not a measure of net income (loss) determined in accordance with GAAP. Willdan believes EBITDA is useful because it allows Willdan’s management to evaluate Willdan’s operating performance and compare the results of Willdan’s operations from period to period and against Willdan’s peers without regard to Willdan’s financing methods, capital structure and non-operating expenses. Willdan uses EBITDA to evaluate Willdan’s performance for, among other things, budgeting, forecasting and incentive compensation purposes. EBITDA has limitations as an analytical tool and should not be considered as an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP. Certain items excluded from EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital, as well as the historical costs of depreciable assets. Willdan’s definition of EBITDA may also differ from those of many companies reporting similarly named measures. A reconciliation of net income (loss) as reported in accordance with GAAP to EBITDA is provided at the end of this news release.
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, November 12, 2015, at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time, to discuss Willdan’s financial results and provide a business update.
Interested parties may participate in the conference call by dialing 888-576-4398 (719-325-2244 for international callers). When prompted, ask for the “Willdan Group, Inc., Third 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 November 26, 2015, by dialing 888-203-1112 (719-457-0820 for international callers). The replay access code is 3458139. The webcast replay will be archived for 12 months.
About Willdan Group, Inc.
Willdan provides professional technical and consulting services to utilities, public agencies and private industry throughout the United States. Willdan’s service offerings span a broad set of complementary disciplines that include energy efficiency and sustainability, engineering and planning, financial and economic consulting, and national preparedness. Willdan provides integrated technical solutions to extend the reach and resources of its clients, and provides all services through its subsidiaries specialized in each segment. 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 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, Willdan’s failure to execute on existing projects, 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 January 2, 2015. 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.
WILLDAN GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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October 2, |
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January 2, |
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2015 |
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2015 |
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|
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(Unaudited) |
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Assets |
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Current assets: |
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|
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Cash and cash equivalents |
|
$ |
15,997,000 |
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$ |
20,371,000 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $1,039,000 and $662,000 at October 2, 2015 and January 2, 2015, respectively |
|
15,124,000 |
|
13,189,000 |
| ||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
18,305,000 |
|
12,170,000 |
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Other receivables |
|
145,000 |
|
208,000 |
| ||
|
Prepaid expenses and other current assets |
|
1,702,000 |
|
2,244,000 |
| ||
|
Total current assets |
|
51,273,000 |
|
48,182,000 |
| ||
|
Equipment and leasehold improvements, net |
|
2,875,000 |
|
1,384,000 |
| ||
|
Goodwill |
|
16,856,000 |
|
— |
| ||
|
Other intangible assets, net |
|
1,649,000 |
|
— |
| ||
|
Other assets |
|
460,000 |
|
535,000 |
| ||
|
Deferred income taxes, net of current portion |
|
3,888,000 |
|
4,558,000 |
| ||
|
Total assets |
|
$ |
77,001,000 |
|
$ |
54,659,000 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Excess of outstanding checks over bank balance |
|
$ |
1,346,000 |
|
$ |
2,198,000 |
|
|
Accounts payable |
|
6,416,000 |
|
3,237,000 |
| ||
|
Accrued liabilities |
|
9,285,000 |
|
10,668,000 |
| ||
|
Contingent consideration payable |
|
2,552,000 |
|
— |
| ||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
6,223,000 |
|
3,863,000 |
| ||
|
Notes payable |
|
3,479,000 |
|
355,000 |
| ||
|
Capital lease obligations |
|
379,000 |
|
324,000 |
| ||
|
Deferred income taxes |
|
4,941,000 |
|
3,131,000 |
| ||
|
Total current liabilities |
|
34,621,000 |
|
23,776,000 |
| ||
|
Contingent consideration payable |
|
3,740,000 |
|
— |
| ||
|
Notes payable |
|
1,498,000 |
|
— |
| ||
|
Capital lease obligations |
|
172,000 |
|
306,000 |
| ||
|
Deferred lease obligations |
|
278,000 |
|
164,000 |
| ||
|
Total liabilities |
|
40,309,000 |
|
24,246,000 |
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|
|
|
|
|
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Commitments and contingencies |
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|
|
|
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|
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|
|
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Stockholders’ equity: |
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|
|
|
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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; 7,864,000 and 7,635,000 shares issued and outstanding at October 2, 2015 and January 2, 2015, respectively |
|
79,000 |
|
76,000 |
| ||
|
Additional paid-in capital |
|
37,833,000 |
|
35,436,000 |
| ||
|
Accumulated deficit |
|
(1,220,000 |
) |
(5,099,000 |
) | ||
|
Total stockholders’ equity |
|
36,692,000 |
|
30,413,000 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
77,001,000 |
|
$ |
54,659,000 |
|
WILLDAN GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
October 2, |
|
September 26, |
|
October 2, |
|
September 26, |
| ||||
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Contract revenue |
|
$ |
33,511,000 |
|
$ |
28,187,000 |
|
$ |
103,581,000 |
|
$ |
77,843,000 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
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Direct costs of contract revenue (exclusive of depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
| ||||
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Salaries and wages |
|
7,745,000 |
|
7,290,000 |
|
23,940,000 |
|
20,495,000 |
| ||||
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Subcontractor services and other direct costs |
|
13,206,000 |
|
9,179,000 |
|
39,712,000 |
|
25,471,000 |
| ||||
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Total direct costs of contract revenue |
|
20,951,000 |
|
16,469,000 |
|
63,652,000 |
|
45,966,000 |
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|
|
|
|
|
|
|
|
|
| ||||
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General and administrative expenses: |
|
|
|
|
|
|
|
|
| ||||
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Salaries and wages, payroll taxes and employee benefits |
|
6,070,000 |
|
5,444,000 |
|
18,993,000 |
|
15,376,000 |
| ||||
|
Facilities and facility related |
|
1,207,000 |
|
1,084,000 |
|
3,203,000 |
|
3,271,000 |
| ||||
|
Stock-based compensation |
|
190,000 |
|
81,000 |
|
468,000 |
|
174,000 |
| ||||
|
Depreciation and amortization |
|
349,000 |
|
124,000 |
|
1,276,000 |
|
329,000 |
| ||||
|
Other |
|
3,103,000 |
|
2,334,000 |
|
8,915,000 |
|
6,823,000 |
| ||||
|
Total general and administrative expenses |
|
10,919,000 |
|
9,067,000 |
|
32,855,000 |
|
25,973,000 |
| ||||
|
Income from operations |
|
1,641,000 |
|
2,651,000 |
|
7,074,000 |
|
5,904,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other (expense) income: |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
1,000 |
|
1,000 |
|
1,000 |
|
4,000 |
| ||||
|
Interest expense |
|
(234,000 |
) |
(4,000 |
) |
(342,000 |
) |
(11,000 |
) | ||||
|
Other, net |
|
— |
|
49,000 |
|
18,000 |
|
116,000 |
| ||||
|
Total other (expense) income, net |
|
(233,000 |
) |
46,000 |
|
(323,000 |
) |
109,000 |
| ||||
|
Income before income taxes |
|
1,408,000 |
|
2,697,000 |
|
6,751,000 |
|
6,013,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income tax expense (benefit) |
|
626,000 |
|
(1,464,000 |
) |
2,872,000 |
|
(1,356,000 |
) | ||||
|
Net income |
|
$ |
782,000 |
|
$ |
4,161,000 |
|
$ |
3,879,000 |
|
$ |
7,369,000 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
$ |
0.10 |
|
$ |
0.55 |
|
$ |
0.50 |
|
$ |
0.99 |
|
|
Diluted |
|
$ |
0.10 |
|
$ |
0.53 |
|
$ |
0.48 |
|
$ |
0.96 |
|
|
|
|
` |
|
|
|
|
|
|
| ||||
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
7,862,000 |
|
7,507,000 |
|
7,817,000 |
|
7,440,000 |
| ||||
|
Diluted |
|
8,102,000 |
|
7,855,000 |
|
8,087,000 |
|
7,700,000 |
| ||||
WILLDAN GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine Months Ended |
| ||||
|
|
|
October 2, |
|
September 26, |
| ||
|
|
|
2015 |
|
2014 |
| ||
|
Cash flows from operating activities: |
|
|
|
|
| ||
|
Net income |
|
$ |
3,879,000 |
|
$ |
7,369,000 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
1,276,000 |
|
329,000 |
| ||
|
Deferred income taxes |
|
2,480,000 |
|
(1,763,000 |
) | ||
|
Loss (gain) on sale of equipment |
|
8,000 |
|
(3,000 |
) | ||
|
Provision for doubtful accounts |
|
431,000 |
|
401,000 |
| ||
|
Stock-based compensation |
|
468,000 |
|
174,000 |
| ||
|
Accretion of contingent consideration |
|
182,000 |
|
— |
| ||
|
Changes in operating assets and liabilities, net of effects from business acquisitions: |
|
|
|
|
| ||
|
Accounts receivable |
|
(1,321,000 |
) |
(1,334,000 |
) | ||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
(5,645,000 |
) |
(4,411,000 |
) | ||
|
Other receivables |
|
63,000 |
|
(676,000 |
) | ||
|
Prepaid expenses and other current assets |
|
583,000 |
|
1,002,000 |
| ||
|
Other assets |
|
75,000 |
|
(221,000 |
) | ||
|
Accounts payable |
|
2,697,000 |
|
241,000 |
| ||
|
Changes in excess of outstanding checks over bank balance |
|
(852,000 |
) |
(337,000 |
) | ||
|
Accrued liabilities |
|
(1,857,000 |
) |
2,914,000 |
| ||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
2,290,000 |
|
2,183,000 |
| ||
|
Deferred lease obligations |
|
114,000 |
|
(86,000 |
) | ||
|
Net cash provided by operating activities |
|
4,871,000 |
|
5,782,000 |
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Purchase of equipment and leasehold improvements |
|
(1,678,000 |
) |
(179,000 |
) | ||
|
Proceeds from sale of equipment |
|
— |
|
5,000 |
| ||
|
Cash paid for acquisitions, net of cash acquired |
|
(8,168,000 |
) |
— |
| ||
|
Net cash used in investing activities |
|
(9,846,000 |
) |
(174,000 |
) | ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Payments on notes payable |
|
(1,628,000 |
) |
(517,000 |
) | ||
|
Proceeds from notes payable |
|
2,000,000 |
|
— |
| ||
|
Principal payments on capital lease obligations |
|
(218,000 |
) |
(207,000 |
) | ||
|
Proceeds from stock option exercise |
|
369,000 |
|
280,000 |
| ||
|
Proceeds from sales of common stock under employee stock purchase plan |
|
78,000 |
|
76,000 |
| ||
|
Net cash provided by (used in) financing activities |
|
601,000 |
|
(368,000 |
) | ||
|
Net (decrease) increase in cash and cash equivalents |
|
(4,374,000 |
) |
5,240,000 |
| ||
|
Cash and cash equivalents at beginning of period |
|
20,371,000 |
|
8,134,000 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
15,997,000 |
|
$ |
13,374,000 |
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
| ||
|
Cash paid during the period for: |
|
|
|
|
| ||
|
Interest |
|
$ |
156,000 |
|
$ |
11,000 |
|
|
Income taxes |
|
951,000 |
|
61,000 |
| ||
|
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 |
|
— |
| ||
|
Issuance of contingent consideration related to business acquisitions |
|
6,110,000 |
|
— |
| ||
|
Equipment acquired under capital leases |
|
139,000 |
|
476,000 |
| ||
Willdan Group, Inc. and Subsidiaries
Reconciliation of GAAP Revenue to “Revenue, Net of Subcontractor Costs”
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||||||||||
|
|
|
October 2, |
|
September 26, |
|
Change |
|
October 2, |
|
September 26, |
|
Change |
| ||||||||
|
In thousands |
|
2015 |
|
2014 |
|
$ |
|
% |
|
2015 |
|
2014 |
|
$ |
|
% |
| ||||
|
Contract revenue |
|
$ |
33,511,000 |
|
$ |
28,187,000 |
|
5,324,000 |
|
19 |
|
$ |
103,581,000 |
|
$ |
77,843,000 |
|
25,738,000 |
|
33 |
|
|
Subcontractor costs |
|
9,375,000 |
|
6,019,000 |
|
3,356,000 |
|
56 |
|
27,459,000 |
|
15,996,000 |
|
11,463,000 |
|
72 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Revenue, net of subcontractor costs |
|
$ |
24,136,000 |
|
$ |
22,168,000 |
|
1,968,000 |
|
9 |
|
$ |
76,122,000 |
|
$ |
61,847,000 |
|
14,275,000 |
|
23 |
|
Willdan Group, Inc. and Subsidiaries
Reconciliation of GAAP Net Income to EBITDA
The following is a reconciliation of net income to EBITDA:
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
In thousands |
|
October 2, |
|
September 26, |
|
October 2, |
|
September 26, |
| ||||
|
Net income |
|
$ |
782 |
|
$ |
4,161 |
|
$ |
3,879 |
|
$ |
7,369 |
|
|
Interest income |
|
(1 |
) |
(1 |
) |
(1 |
) |
(4 |
) | ||||
|
Interest expense |
|
234 |
|
4 |
|
342 |
|
11 |
| ||||
|
Income tax expense (benefit) |
|
626 |
|
(1,464 |
) |
2,872 |
|
(1,356 |
) | ||||
|
Depreciation and amortization |
|
349 |
|
124 |
|
1,276 |
|
329 |
| ||||
|
EBITDA |
|
$ |
1,990 |
|
$ |
2,824 |
|
$ |
8,368 |
|
$ |
6,349 |
|
Contact:
Willdan Group, Inc.
Stacy McLaughlin
Chief Financial Officer
Tel: 714-940-6300
smclaughlin@willdan.com
Or
Investor/Media Contact
Financial Profiles, Inc.
Tel: 310-478-2700
Moira Conlon: mconlon@finprofiles.com
Tony Rossi: trossi@finprofiles.com