ANAHEIM, Calif., November 11, 2010 (BUSINESS WIRE) - Willdan Group, Inc. ("Willdan") (NASDAQ:WLDN), today announced financial results for its third quarter ended October 1, 2010.

For the third quarter of 2010, Willdan reported total contract revenue of $20.7 million and net income of $0.8 million, or $0.11 per share.

Tom Brisbin, Willdan's Chief Executive Officer, remarked: "Our business is growing, profitable, and more diverse in terms of both services and geographic reach than ever before. We have addressed the recession as 'the new reality' and have made, and will continue to make, adjustments necessary to move Willdan forward.

"I am optimistic about the future. We have strong growth opportunities across our business lines and markets."

Third Quarter 2010 Results

For the third quarter of fiscal 2010, revenue was $20.7 million, up $6.1 million, or 41.8%, from revenue of $14.6 million for the comparable period last year. On a sequential basis, revenue was up $0.3 million, or 1.5%, from the second quarter of 2010. Income from operations was $1.4 million for the third quarter of fiscal 2010, as compared to a loss from operations of $1.4 million for the comparable period last year. On a sequential basis, income from operations was up $0.1 million, or 7.7%, from income from operations of $1.3 million for the second quarter of 2010.

Net income was $0.8 million for the third quarter of fiscal 2010, as compared to a net loss of $0.9 million in the comparable period last year and net income of $1.3 million in the second quarter of 2010.

Basic and diluted earnings per share for the third quarter of fiscal 2010 was $0.11 as compared to a loss per share of $0.12 for the comparable period last year.

Willdan generated $3.0 million in cash flow from operations in the third quarter of fiscal year 2010.

Nine Months 2010 Results

For the nine months ended October 1, 2010, revenue was $58.0 million, up $10.8 million, or 22.9%, from revenue of $47.2 million in the comparable period last year. Income from operations was $3.0 million for the nine months ended October 1, 2010 as compared to a loss from operations of $3.5 million for the comparable period last year. Net income was $2.4 million for the nine months ended October 1, 2010 as compared to a net loss of $2.2 million for the comparable period last year.

Basic and diluted earnings per share for the nine months ended October 1, 2010 was $0.34, as compared to a basic and diluted loss per share of $0.31 for the comparable period last year.

Willdan generated $1.3 million in cash flow from operations in the nine months ended October 1, 2010.

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 (benefit) expense, depreciation and amortization, lease abandonment (recovery) expense, and loss (gain) on sales of equipment. 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 net income. Willdan believes Adjusted EBITDA enables management to separate unusual or infrequent 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 from its operational results the impact of certain unusual or infrequent income and expense items, 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 $5.5 million to $3.7 million for the nine months ended October 1, 2010 from $(1.8) million for the comparable period last year.

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

Liquidity and Capital Resources

Willdan had $7.6 million in cash and cash equivalents at October 1, 2010, compared with $8.4 million at January 1, 2010. Willdan has a $5.0 million revolving line of credit under a credit agreement with its bank. At October 1, 2010, there was $1.0 million in outstanding borrowings under this agreement.

Conference Call and Webcast

Chief Executive Officer Thomas Brisbin and Chief Financial Officer Kimberly Gant plan to host a conference call on November 11, 2010 at 5:00 p.m. Eastern/2:00 p.m. Pacific, to further discuss the Company's financial results.

Interested parties may participate in the conference call by dialing 800-762-8779 (480-629-9771 for international callers). When prompted, ask for the "Willdan Group, Inc., Third Quarter 2010 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 25th, 2010, by dialing 800-406-7325 (303-590-3030 for international callers). The replay access code is 4374819. The webcast replay will be archived for 12 months.

About Willdan Group, Inc.

Founded over 40 years ago, Willdan is a provider of outsourced services to public and private agencies and utilities located primarily in California and New York. Willdan assists cities, public utilities and other government agencies and, to a lesser extent, private industry with a broad range of services, including civil engineering, building and safety services, geotechnical engineering, energy efficiency, water conservation, renewable resource strategy, financial and economic consulting, and disaster preparedness and homeland security. For additional information, visit Willdan's website at www.willdan.com.

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 Form 10-K annual report for the year ended January 1, 2010 filed on March 30, 2010. 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.

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

SOURCE: Willdan Group, Inc.