Willdan Group, Inc. (“Willdan”) (NASDAQ:WLDN), today
announced financial results for its fourth quarter and fiscal year
2011 ended December 30, 2011.
For the fourth quarter of 2011, Willdan reported total contract
revenue of $30.0 million and a net loss of $0.8 million, or $0.11
per basic and diluted share.
For the fiscal year ended December 30, 2011, Willdan reported
total contract revenue of $107.2 million and net income of $1.8
million, or $0.25 per basic share and $0.24 per diluted share.
Tom Brisbin, Willdan’s Chief Executive Officer, stated: “We’re
pleased with our results for 2011. The investments we have made in
diversifying our business are paying off and we are now on a clear
path to sustained long-term growth. Our diversification into the
energy efficiency market, in particular, has significantly
contributed to our recovery and growth over the past three years.
We are excited about the future and believe that Willdan is poised
to deliver improved profits and stockholder returns in 2012 and
beyond.”
Fourth Quarter 2011 Results
For the fourth quarter of fiscal 2011, revenue was $30.0
million, up $10.1 million, or 51.0%, from revenue of $19.9 million
for the comparable period last year. On a sequential basis, revenue
was up $1.4 million, or 4.9%, from the third quarter of 2011.
Income from operations was $0.3 million for the fourth quarter of
fiscal 2011, as compared to $30,000 for the comparable period last
year. On a sequential basis, income from operations decreased $2.1
million from $2.4 million in the third quarter of 2011.
Net loss was $0.8 million for the fourth quarter of fiscal 2011,
as compared to net income of $0.3 million in the comparable period
last year and net income of $2.2 million in the third quarter of
2011.
Basic and diluted loss per share for the fourth quarter of
fiscal 2011 was $0.11 as compared to basic and diluted earnings per
share of $0.04 for the comparable period last year.
Willdan used $3.7 million in cash flow from operations in the
fourth quarter of fiscal 2011.
Fiscal Year 2011 Results
Revenue for fiscal year 2011 was $107.2 million, up $29.3
million, or 37.6%, from revenue of $77.9 million for fiscal year
2010. Income from operations was $3.4 million for fiscal year 2011
as compared to $3.1 million for fiscal year 2010. Net income was
$1.8 million for fiscal year 2011 as compared to $2.7 million for
fiscal year 2010.
Basic and diluted earnings per share for fiscal year 2011 were
$0.25 and $0.24, respectively, as compared to basic and diluted
earnings per share of $0.38 and $0.37, respectively, for fiscal
year 2010.
Willdan used $0.7 million in cash flow from operations in the
year ended December 30, 2011.
Three Months Ended Twelve Months
Ended In thousands (except EPS data) December 30,
2011
December 31,
2010
December 30,
2011
December 31,
2010
Revenue $ 30,006 $ 19,872 $ 107,165 $ 77,896 Income from
operations 347 30 3,401 3,074 Interest income — 3 5 12 Interest
expense (24 ) (17 ) (77 ) (54 ) Other, net (4 ) 15 1 32 Income tax
(expense) benefit (1,098 ) 251 (1,500 ) (344 ) Net (loss) income $
(779 ) $ 282 $ 1,830 $ 2,720 (Loss) earnings per share Basic
$ (0.11 ) $ 0.04 $ 0.25 $ 0.38 Diluted $ (0.11 ) $ 0.04 $ 0.24 $
0.37 Weighted average shares outstanding: Basic 7,273 7,245
7,262 7,233 Diluted 7,273 7,380 7,485 7,311
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 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 from its operational results the impact of certain
non-recurring 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 operating income or net income as
an indicator of operating performance or any other GAAP
measure.
Adjusted EBITDA increased to $4.3 million for fiscal year 2011
from $4.1 million for fiscal year 2010.
The following is a reconciliation of net income (loss) to
Adjusted EBITDA:
In thousands
Twelve Months Ended December 30,
2011
December 31,
2010
Net income $ 1,830 $ 2,720 Interest income (5 ) (12 )
Interest expense 77 54 Income tax expense 1,500 344 Lease
abandonment expense (recovery) 2 (68 ) Depreciation and
amortization 944 1,053 Loss (gain) on sale of assets 2 (17 )
Adjusted EBITDA $ 4,350 $ 4,074
Liquidity and Capital Resources
Willdan had $3.0 million in cash and cash equivalents at
December 30, 2011, compared with $6.6 million at December 31, 2010.
Willdan had $0.3 million in outstanding borrowings under a $5.0
million revolving line of credit at the end of fiscal year
2011.
Conference Call and Webcast
Chief Executive Officer Thomas Brisbin and Chief Financial
Officer Kimberly Gant plan to host a conference call on March 27,
2012 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 877-941-8609 (480-629-9692 for international callers). When
prompted, ask for the “Willdan Group, Inc., Fourth Quarter 2011
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 April 10, 2012, by
dialing 800-406-7325 (303-590-3030 for international callers). The
replay access code is 4512338. The webcast replay will be archived
for 12 months.
About Willdan Group, Inc.
Founded over 45 years ago, Willdan is a provider of professional
technical and consulting services to small and mid-sized public
agencies, large public utilities and, to a lesser extent, private
industry primarily located in California, New York and Arizona.
Willdan provides a broad range of services to clients, including
civil engineering and planning, energy efficiency and
sustainability, economic and financial consulting, and homeland
security and communications and technology. 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 Annual
Report on Form 10-K to be filed for the year ended December 30,
2011. 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
CONSOLIDATED BALANCE SHEETS
December 30,2011 December
31,2010 Assets Current assets: Cash and cash
equivalents $ 3,001,000 $ 6,642,000 Accounts receivable, net of
allowance for doubtful accounts of $421,000 and $959,000
at December 30, 2011 and December 31,
2010, respectively
16,782,000 14,484,000 Costs and estimated earnings in excess of
billings on uncompleted contracts 20,672,000 11,343,000 Other
receivables 175,000 176,000 Prepaid expenses and other current
assets 1,724,000 1,714,000 Total current assets 42,354,000
34,359,000 Equipment and leasehold improvements, net
1,217,000 1,496,000 Goodwill 15,208,000 12,475,000 Other intangible
assets, net 49,000 95,000 Other assets 383,000 407,000 Deferred
income taxes 5,100,000 622,000 Total assets $ 64,311,000 $
49,454,000
Liabilities and Stockholders’ Equity
Current liabilities: Excess of outstanding checks over bank balance
$ 1,777,000 $ 1,223,000 Borrowings under line of credit 256,000
1,000,000 Accounts payable 8,182,000 5,380,000 Accrued liabilities
10,192,000 5,985,000 Billings in excess of costs and estimated
earnings on uncompleted contracts 752,000 1,041,000 Current portion
of notes payable 600,000 90,000 Current portion of capital lease
obligations 163,000 173,000 Current portion of deferred income
taxes 7,349,000 1,407,000 Total current liabilities 29,271,000
16,299,000 Notes payable, less current portion 77,000
131,000 Capital lease obligations, less current portion 136,000
96,000 Deferred lease obligations 534,000 766,000 Total liabilities
30,018,000 17,292,000 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;
7,274,000 and 7,246,000
shares issued and outstanding at December
30, 2011 and December 31, 2010, respectively
73,000 72,000 Additional paid-in capital 34,065,000 33,765,000
Accumulated earnings (deficit) 155,000 (1,675,000 ) Total
stockholders’ equity 34,293,000 32,162,000 Total liabilities and
stockholders’ equity $ 64,311,000 $ 49,454,000
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
Fiscal Year 2011 2010
2009 Contract revenue $ 107,165,000 $ 77,896,000 $
61,605,000 Direct costs of contract revenue (exclusive of
depreciation and amortization shown separately below): Salaries and
wages 25,714,000 21,607,000 18,130,000 Subconsultant services
34,195,000 16,523,000 7,997,000 Other direct costs 4,818,000
3,892,000 2,715,000
Total direct costs of contract revenue
64,727,000 42,022,000 28,842,000 General and administrative
expenses: Salaries and wages, payroll taxes and employee benefits
22,594,000 17,582,000 20,325,000 Facilities and facility related
4,875,000 4,290,000 4,430,000 Stock-based compensation 201,000
235,000 272,000 Depreciation and amortization 877,000 1,042,000
1,814,000 Lease abandonment (recovery), net 2,000 (68,000 ) 707,000
Impairment of goodwill — — 2,763,000 Litigation accrual (reversal)
— — (1,125,000 ) Other 10,488,000 9,719,000 11,070,000 Total
general and administrative expenses 39,037,000 32,800,000
40,256,000 Income (loss) from operations 3,401,000 3,074,000
(7,493,000 ) Other (expense) income: Interest income 5,000
12,000 30,000 Interest expense (77,000 ) (54,000 ) (38,000 ) Other,
net 1,000 32,000 (5,000 ) Total other (expense) income, net (71,000
) (10,000 ) (13,000 ) Income (loss) before income taxes 3,330,000
3,064,000 (7,506,000 ) Income tax expense (benefit)
1,500,000 344,000 (1,931,000 ) Net income (loss) $ 1,830,000 $
2,720,000 $ (5,575,000 ) Earnings (loss) per share: Basic $
0.25 $ 0.38 $ (0.78 ) Diluted $ 0.24 $ 0.37 $ (0.78 )
Weighted-average shares outstanding: Basic 7,262,000 7,233,000
7,192,000 Diluted 7,485,000 7,311,000 7,192,000
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Fiscal Year 2011 2010
2009 Cash flows from operating activities: Net income (loss)
$ 1,830,000 $ 2,720,000 $ (5,575,000 ) Adjustments to reconcile net
income (loss) to net cash (used in) provided by
operating activities:
Non-cash revenue from subcontractor settlement (902,000 ) — —
Depreciation and amortization 944,000 1,053,000 1,814,000 Deferred
income taxes 1,465,000 389,000 (1,890,000 ) Goodwill impairment — —
2,763,000 Lease abandonment expense (recovery), net 2,000 (68,000 )
707,000 Loss (gain) on sale of equipment 2,000 (17,000 ) 6,000
Provision for doubtful accounts 209,000 20,000 1,829,000
Stock-based compensation 201,000 235,000 272,000 Changes in
operating assets and liabilities: Accounts receivable (2,507,000 )
(4,407,000 ) 936,000 Costs and estimated earnings in excess of
billings on uncompleted contracts (8,427,000 ) (4,694,000 )
1,632,000 Income tax receivable — 51,000 905,000 Other receivables
1000 (103,000 ) (25,000 ) Prepaid expenses and other current assets
(10,000 ) (214,000 ) 284,000 Other assets 24,000 (89,000 ) 55,000
Accounts payable 2,802,000 3,923,000 (654,000 ) Accrued liabilities
4,206,000 1,476,000 (959,000 ) Billings in excess of costs and
estimated earnings on uncompleted contracts (289,000 ) 11,000
326,000 Deferred lease obligations (234,000 ) (189,000 ) (272,000 )
Net cash (used in) provided by operating activities (683,000 )
97,000 2,154,000 Cash flows from investing activities:
Purchase of equipment and leasehold improvements (395,000 )
(685,000 ) (386,000 ) Proceeds from sale of equipment 6,000 40,000
— Payments related to business acquisitions (2,733,000 ) (2,104,000
) (2,373,000 ) Net cash used in investing activities (3,122,000 )
(2,749,000 ) (2,759,000 ) Cash flows from financing
activities: Changes in excess of outstanding checks over bank
balance 554,000 735,000 40,000 Payments on notes payable (211,000 )
(17,000 ) (46,000 ) Proceeds from notes payable 667,000 214,000 —
Borrowings under line of credit 33,965,000 14,123,000 3,553,000
Repayments of line of credit (34,709,000 ) (14,123,000 ) (2,553,000
) Principal payments on capital leases (202,000 ) (173,000 )
(172,000 ) Proceeds from stock option exercise 7,000 3,000 —
Proceeds from sales of common stock under employee stock purchase
plan 93,000 87,000 84,000 Net cash provided by financing activities
164,000 849,000 906,000 Net (decrease) increase in cash and
cash equivalents (3,641,000 ) (1,803,000 ) 301,000 Cash and cash
equivalents at beginning of the year 6,642,000 8,445,000 8,144,000
Cash and cash equivalents at end of the year $ 3,001,000 $
6,642,000 $ 8,445,000 Supplemental disclosures of cash flow
information: Cash paid during the period for: Interest $ 77,000 $
52,000 $ 40,000 Income taxes 70,000 48,000 3,000 Supplemental
disclosures of noncash investing and financing activities:
Equipment acquired under capital leases $ 247,000 $ 240,000 $
60,000
Willdan (NASDAQ:WLDN)
Historical Stock Chart
From Apr 2024 to May 2024
Willdan (NASDAQ:WLDN)
Historical Stock Chart
From May 2023 to May 2024