Willdan Reports Second Quarter 2013 Financial Results Business Wire ANAHEIM, Calif. -- August 8, 2013 Willdan Group, Inc. (“Willdan”) (NASDAQ:WLDN), today announced financial results for its second quarter ended June 28, 2013. For the second quarter of 2013, Willdan reported total contract revenue of $20.5 million and net income of $0.7 million, or $0.09 per share. Tom Brisbin, Willdan’s Chief Executive Officer, stated: “While our second quarter revenue was lower than last year, I’m pleased to report that we generated positive cash flow and earnings for the quarter. Lower revenue was due to continued declines in our energy segment, offset by gains in all of our other business lines. Our energy projects began to ramp up during the second quarter as planned and we expect revenue growth and higher levels of profitability in the second half of 2013.” Second Quarter 2013 Results For the second quarter of fiscal 2013, revenue was $20.5 million, down $3.0 million, or 12.7%, from revenue of $23.5 million for the comparable period last year. On a sequential basis, revenue was down $0.9 million, or 4.2%, from the first quarter of 2013. Income from operations was $0.7 million for the second quarter of fiscal 2013, as compared to a loss from operations of $19.6 million for the comparable period last year. On a sequential basis, income from operations was $0.7 million as compared to $0.5 million for the first quarter of 2013. Net income was $0.7 million for the second quarter of fiscal 2013, as compared to a net loss of $17.0 million for the comparable period last year and net income of $0.4 million for the first quarter of 2013. Basic and diluted earnings per share for the second quarter of fiscal 2013 were $0.09 as compared to a basic and diluted loss per share of $2.33 for the comparable period last year. Willdan generated $1.4 million in cash flow from operations in the second quarter of fiscal 2013. Six Months 2013 Results For the six months ended June 28, 2013, revenue was $41.9 million, as compared to $48.9 million in the comparable period last year. Income from operations was $1.2 million for the six months ended June 28, 2013 as compared to a loss from operations of $21.9 million for the comparable period last year. Net income was $1.1 million for the six months ended June 28, 2013 as compared to a net loss of $18.4 million for the comparable period last year. Basic and diluted earnings per share for the six months ended June 28, 2013 were $0.15 as compared to a basic and diluted loss per share of $2.52 for the comparable period last year. Willdan generated $2.4 million in cash flow from operations in the six months ended June 28, 2013. Three Months Ended Six Months Ended In thousands (except per June 28, June 29, June 28, June 29, share data) 2013 2012 2013 2012 Revenue $ 20,496 $ 23,481 $ 41,881 $ 48,949 Income (loss) from 718 (19,583 ) 1,175 (21,900 ) operations Interest income 2 1 5 2 Interest expense (50 ) (30 ) (77 ) (52 ) Other, net 10 (21 ) 25 (21 ) Income tax (benefit) expense (8 ) (2,657 ) 41 (3,584 ) Net income (loss) $ 688 $ (16,976 ) $ 1,087 $ (18,387 ) Basic and diluted earnings $ 0.09 $ (2.33 ) $ 0.15 $ (2.52 ) (loss) per share Weighted average shares outstanding: Basic 7,353 7,297 7,336 7,294 Diluted 7,401 7,297 7,383 7,294 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, goodwill impairment, 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 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 $7.8 million to $1.5 million for the six months ended June 28, 2013 from $(6.3) million for the comparable period last year. The following is a reconciliation of net income (loss) to Adjusted EBITDA: Six Months Ended June 28, June 29, In thousands 2013 2012 Net income (loss) $ 1,087 $ (18,387 ) Interest income (5 ) (2 ) Interest expense 77 52 Income tax expense (benefit) 41 (3,584 ) Loss on sale of assets — 22 Depreciation and amortization 310 387 Impairment of goodwill — 15,208 Lease abandonment expense, net 13 30 Adjusted EBITDA $ 1,523 $ (6,274 ) Liquidity and Capital Resources Willdan had $8.5 million in cash and cash equivalents at June 28, 2013, compared with $10.0 million at December 28, 2012. Willdanhas a $5.0 millionrevolving line of credit withWells Fargo Bank, National Association, withno outstanding borrowings at June 28, 2013. Conference Call and Webcast Chief Executive Officer Thomas Brisbin and Chief Financial Officer Kimberly Gant plan to host a conference call on August 8, 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 877-941-2332 (480-629-9867 for international callers). When prompted, ask for the “Willdan Group, Inc., Second 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 August 22, 2013, by dialing 800-406-7325 (303-590-3030 for international callers). The replay access code is 4633799. The webcast replay will be archived for 12 months. About Willdan Group, Inc. Founded in 1964,Willdanis 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.Willdanprovides 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, visitWilldan’swebsite 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 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. WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 28, December 28, 2013 2012 (unaudited) Assets Current assets: Cash and cash equivalents $ 8,475,000 $ 10,006,000 Accounts receivable, net of allowance for doubtful accounts of $512,000 and $303,000 at 11,040,000 15,484,000 June 28, 2013 and December 28, 2012, respectively Costs and estimated earnings in excess of 10,241,000 9,860,000 billings on uncompleted contracts Other receivables 68,000 95,000 Prepaid expenses and other current assets 1,222,000 1,782,000 Total current assets 31,046,000 37,227,000 Equipment and leasehold improvements, net 762,000 979,000 Other intangible assets, net — 12,000 Other assets 298,000 307,000 Deferred income taxes, net of current portion 3,452,000 3,452,000 Total assets $ 35,558,000 $ 41,977,000 Liabilities and Stockholders’ Equity Current liabilities: Excess of outstanding checks over bank balance $ 818,000 $ 1,188,000 Borrowings under line of credit — 3,000,000 Accounts payable 3,440,000 6,983,000 Accrued liabilities 5,110,000 5,306,000 Billings in excess of costs and estimated 3,559,000 3,419,000 earnings on uncompleted contracts Current portion of notes payable 169,000 628,000 Current portion of capital lease obligations 136,000 152,000 Current portion of deferred income taxes 3,452,000 3,452,000 Total current liabilities 16,684,000 24,128,000 Capital lease obligations, less current 74,000 124,000 portion Deferred lease obligations 237,000 374,000 Total liabilities 16,995,000 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 74,000 73,000 shares issued and outstanding at June 28, 2013 and December 28, 2012, respectively Additional paid-in capital 34,547,000 34,423,000 Accumulated (deficit) earnings (16,058,000 ) (17,145,000 ) Total stockholders’ equity 18,563,000 17,351,000 Total liabilities and stockholders’ equity $ 35,558,000 $ 41,977,000 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, 2013 2012 2013 2012 Contract revenue $ 20,496,000 $ 23,481,000 $ 41,881,000 $ 48,949,000 Direct costs of contract revenue (exclusive of depreciation and amortization shown separately below): Salaries and 6,129,000 5,976,000 11,972,000 11,933,000 wages Subconsultant services and 5,309,000 11,140,000 11,500,000 22,377,000 other direct costs Total direct costs of 11,438,000 17,116,000 23,472,000 34,310,000 contract revenue General and administrative expenses: Salaries and wages, payroll taxes and 4,948,000 5,839,000 10,486,000 12,267,000 employee benefits Facilities and facilities 1,149,000 1,240,000 2,337,000 2,435,000 related Stock-based 38,000 77,000 88,000 131,000 compensation Depreciation and 127,000 181,000 276,000 355,000 amortization Lease — 26,000 13,000 30,000 abandonment, net Impairment of — 15,208,000 — 15,208,000 goodwill Other 2,078,000 3,377,000 4,034,000 6,113,000 Total general and 8,340,000 25,948,000 17,234,000 36,539,000 administrative expenses Income (loss) 718,000 (19,583,000 ) 1,175,000 (21,900,000 ) from operations Other income (expense), net: Interest income 2,000 1,000 5,000 2,000 Interest expense (50,000 ) (30,000 ) (77,000 ) (52,000 ) Other, net 10,000 (21,000 ) 25,000 (21,000 ) Total other (38,000 ) (50,000 ) (47,000 ) (71,000 ) expense, net Income (loss) before income 680,000 (19,633,000 ) 1,128,000 (21,971,000 ) taxes Income tax (benefit) (8,000 ) (2,657,000 ) 41,000 (3,584,000 ) expense Net income $ 688,000 $ (16,976,000 ) $ 1,087,000 $ (18,387,000 ) (loss) Earnings per share: Basic and $ 0.09 $ (2.33 ) $ 0.15 $ (2.52 ) diluted Weighted-average shares outstanding: Basic 7,353,000 7,297,000 7,336,000 7,294,000 Diluted 7,401,000 7,297,000 7,383,000 7,294,000 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 28, June 29, 2013 2012 Cash flows from operating activities: Net income (loss) $ 1,087,000 $ (18,387,000 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 310,000 387,000 Deferred income taxes — (3,584,000 ) Impairment of goodwill — 15,208,000 Lease abandonment expense, net 13,000 30,000 Loss on sale of equipment (6,000 ) 22,000 Provision for doubtful accounts 162,000 432,000 Stock-based compensation 88,000 131,000 Changes in operating assets and liabilities: Accounts receivable 4,282,000 (5,498,000 ) Costs and estimated earnings in excess of (381,000 ) 10,066,000 billings on uncompleted contracts Other receivables 27,000 89,000 Prepaid expenses and other current assets 560,000 231,000 Other assets 9,000 34,000 Accounts payable (3,543,000 ) 2,826,000 Accrued liabilities (196,000 ) (2,045,000 ) Billings in excess of costs and estimated 140,000 1,063,000 earnings on uncompleted contracts Deferred lease obligations (150,000 ) (86,000 ) Net cash provided by operating activities 2,402,000 919,000 Cash flows from investing activities: Purchase of equipment and leasehold (86,000 ) (220,000 ) improvements Proceeds from sale of equipment 11,000 8,000 Net cash used in investing activities (75,000 ) (212,000 ) Cash flows from financing activities: Changes in excess of outstanding checks over (370,000 ) (448,000 ) bank balance Payments on notes payable (459,000 ) (489,000 ) Borrowings under line of credit 266,000 11,663,000 Repayments on line of credit (3,266,000 ) (8,919,000 ) Principal payments on capital lease (66,000 ) (88,000 ) obligations Proceeds from sales of common stock under 37,000 75,000 employee stock purchase plan Net cash (used in) provided by financing (3,858,000 ) 1,794,000 activities Net increase in cash and cash equivalents (1,531,000 ) 2,501,000 Cash and cash equivalents at beginning of 10,006,000 3,001,000 the period Cash and cash equivalents at end of the $ 8,475,000 $ 5,502,000 period Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 81,000 $ 51,000 Income taxes 155,000 45,000 Supplemental disclosures of noncash investing and financing activities: Equipment acquired under capital lease $ 7,000 $ 10,000 obligations Contact: Willdan Group, Inc. Kimberly Gant Chief Financial Officer Tel: 714-940-6300 firstname.lastname@example.org or Financial Profiles, Inc. Moira Conlon Tel: 310-478-2700 x11 email@example.com
Willdan Reports Second Quarter 2013 Financial Results
Press spacebar to pause and continue. Press esc to stop.