Mastech Holdings, Inc. Reports First Quarter 2013 Results
PITTSBURGH, April 24, 2013 /PRNewswire/ -- Mastech Holdings, Inc. (NYSE MKT: MHH), a national provider of Information Technology and Specialized Healthcare staffing services, announced today its financial results for the first quarter ended March 31, 2013.
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First Quarter Results:
Revenues for the first quarter of 2013 totaled $27.0 million, which represented a 10% increase over the corresponding quarter last year and a 2% improvement over fourth quarter 2012 results. Gross profit in the first quarter of 2013 was $4.9 million compared to $4.5 million in the first quarter of 2012. Consolidated net income for the first quarter 2013 totaled $575,000 or $0.17 per diluted share, compared to $352,000 or $0.10 per diluted share, during the same period last year. It is important to note that the 2013 quarter had one less billable day than last year's corresponding quarter.
Demand for our IT staffing services was solid for much of the quarter. Market conditions in the healthcare staffing business were generally steady and we were able to achieve sequential revenue growth for the eleventh consecutive quarter. Overall gross margins in the first quarter of 2013 were 18.1%, which were slightly below gross margins of 18.2% reported a year earlier.
Kevin Horner, Mastech's Chief Executive Officer stated, "We are pleased with our operational performance and the financial results that we delivered in our historically challenging first quarter. We were able to increase our IT billable consultant-base during the quarter by over 4% and grew revenues in our healthcare segment despite seasonal headwinds in our surgical nursing business. Operationally, we continued to see improvements in our recruitment performance metrics and believe that these favorable trends will translate into elevated levels of client satisfaction."
Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated, "Our financial position at March 31, 2013 remains strong, with short-term borrowings, net of cash balances on hand, essentially unchanged from our year-end 2012 position of $2.0 million. Additionally, we had approximately $13.2 million of available borrowing capacity under our existing credit facility with PNC Bank. During the quarter, cash generated from operations was sufficient to fund our continued investment in operating working capital and the other cash needs of our business.
In conjunction with its first quarter earnings release, Mastech will host a conference call at 9:00 A. M. ET on April 24, 2013 to discuss these results and to answer questions. A live webcast of this conference call will be available on the company's website, www.mastech.com. Simply click on the Investor Relations section and follow the links to the live webcast. The webcast will remain available for replay through May 1, 2013.
About Mastech Holdings, Inc.:
Leveraging the power of 26 years of IT experience, Mastech (NYSE MKT: MHH) provides Information Technology Staffing services in the disciplines which drive today's business operations and Specialized Healthcare Staffing services to hospitals and other healthcare facilities. More information about Mastech can be found at Mastech's website: www.mastech.com.
Forward-Looking Statements:
Certain statements contained in this release are forward-looking statements based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of revenues, earnings, and cash flow. These statements are based on information currently available to the Company and it assumes no obligation to update the forward-looking statements as circumstances change. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation, the level of market demand for its services, the highly competitive market for the types of services offered by the company, the impact of competitive factors on profit margins, market conditions that could cause the Company's customers to reduce their spending for its services, and the company's ability to create, acquire and build new lines of business, to attract and retain qualified personnel, reduce costs and conserve cash, and other risks that are described in more detail in the company's filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2012.
| MASTECH HOLDINGS, INC. |
||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
| (Amounts in thousands) |
||||
| (Unaudited) |
||||
| March 31, |
December 31, |
|||
| 2013 |
2012 |
|||
| ASSETS |
||||
| Current assets: |
||||
| Cash and cash equivalents |
$ 630 |
$ 659 |
||
| Accounts receivable, net |
15,693 |
13,791 |
||
| Prepaid and other current assets |
580 |
788 |
||
| Deferred income taxes |
197 |
153 |
||
| Total current assets |
17,100 |
15,391 |
||
| Equipment, enterprise software and leasehold improvements, net |
232 |
249 |
||
| Goodwill and intangible assets, net |
426 |
429 |
||
| Deferred financing costs, net |
39 |
46 |
||
| Non-current deposits |
216 |
214 |
||
| Deferred income taxes |
124 |
91 |
||
| Total assets |
$ 18,137 |
$ 16,420 |
||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
| Current liabilities: |
||||
| Short-term borrowings |
$ 2,666 |
$ 2,610 |
||
| Accounts payable |
2,444 |
1,984 |
||
| Accrued payroll and related costs |
5,019 |
4,424 |
||
| Deferred revenue and other liabilities |
439 |
515 |
||
| Total current liabilities |
10,568 |
9,533 |
||
| Total liabilities |
10,568 |
9,533 |
||
| Shareholders' equity: |
||||
| Common stock, par value $0.01 per share |
39 |
39 |
||
| Additional paid-in capital |
11,134 |
11,036 |
||
| Retained earnings |
(506) |
(1,081) |
||
| Accumulated other comprehensive income |
17 |
8 |
||
| Treasury stock, at cost |
(3,115) |
(3,115) |
||
| Total shareholders' equity |
7,569 |
6,887 |
||
| Total liabilities and shareholders' equity |
$ 18,137 |
$ 16,420 |
||
| MASTECH HOLDINGS, INC. |
|||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
| (Amounts in thousands, except per share data) |
|||
| (Unaudited) |
|||
| Three Months ended March 31, |
|||
| 2013 |
2012 |
||
| Revenues |
$ 27,005 |
$ 24,454 |
|
| Cost of revenues |
22,122 |
19,994 |
|
| Gross profit |
4,883 |
4,460 |
|
| Selling, general and administrative expenses |
3,946 |
3,864 |
|
| Income from operations |
937 |
596 |
|
| Other income/(expense), net |
(13) |
(23) |
|
| Income before income taxes |
924 |
573 |
|
| Income tax expense |
349 |
221 |
|
| Net income |
$ 575 |
$ 352 |
|
| Earnings per share: |
|||
| Basic |
$ 0.17 |
$ 0.10 |
|
| Diluted |
$ 0.17 |
$ 0.10 |
|
| Weighted average common shares outstanding: |
|||
| Basic |
3,342 |
3,481 |
|
| Diluted |
3,426 |
3,582 |
|
SOURCE Mastech Holdings, Inc.
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