Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN), a provider of
professional technical and consulting services, today reported
financial results for its fourth quarter and fiscal year ended
January 1, 2021.
Fourth Quarter 2020 Summary
- Signed $781 million in California Investor Owned Utility
Contracts
- Consolidated contract revenue of $96.9 million, a decrease of
25.1%
- Net revenue of $50.8 million, a decrease of 16.8%
- Net loss of $4.0 million, or $(0.33) per diluted share
- Adjusted net income of $5.6 million, or $0.46 per diluted
share
- Adjusted EBITDA of $8.6 million, or 16.9% of net revenue
- Cash provided by operating activities of $20.1 million
Fiscal Year 2020 Summary
- Consolidated contract revenue of $391.0 million, a decrease of
11.8%
- Net revenue of $194.5 million, a decrease of 2.5%
- Net loss of $14.5 million, or $ (1.23) per diluted share
- Adjusted net income of $15.3 million, or $1.30 per diluted
share
- Adjusted EBITDA of $28.1 million, or 14.5% of net revenue
- Cash provided by operating activities of $47.0 million
“In 2020 we proved that we could acquire new capabilities with
acquisitions, combine and strategically cross sell those new
capabilities and experience, and then win what we believe are the
largest most complex contracts in our industry," said Tom Brisbin,
Willdan’s Chairman and Chief Executive Officer. “We believe our
growth model is repeatable and durable, so we plan to continue
adding complimentary skills to catalyze organic growth. I thank our
new customers for trusting us, and our team of employees for their
dedication and hard work in the most trying times.
Willdan serves one of the most exciting markets in the world at
one of the most exciting times. A cleaner, low carbon energy cycle
is transforming our electric grid, buildings, industrial production
and transportation networks. Willdan helps these clients evaluate
new technical advances and implement cost effective solutions.
During 2020, we generated $47 million in cash flow from operations,
a Company record, and we were awarded California Investor Owned
Utility (“IOU”) contracts that, on a weighted average basis,
represent approximately $150 million per year in incremental
contract revenue in the next three to five years if we successfully
execute the work. These new wins solidify our market position in
California and we believe are large enough to drive double digit
organic growth potential for the next two years.”
Fourth Quarter 2020 Financial Results
Consolidated contract revenue for the fourth quarter of 2020 was
$96.9 million, a decrease of 25.1% from $129.4 million for the
fourth quarter of 2019. Consolidated contract revenue for the
Energy segment was $81.8 million for the fourth quarter of 2020, a
decrease of 27.5% from the fourth quarter of 2019, primarily due to
decreased contract revenues from our direct install programs for
small businesses as a result of business shutdowns related to the
Covid-19 pandemic and effort to limit its spread that started in
March 2020, which were continuing primarily in California,
partially offset by $20 million of incremental contract revenue
generated from government projects. Consolidated contract revenue
for the Engineering and Consulting segment was $15.1 million, a
decrease of 9.0% from the fourth quarter of 2019, primarily due to
a reduction in scope of work from one of our customers implemented
in the second quarter of 2020 combined with decreased subcontractor
revenues.
Net Revenue for the fourth quarter of 2020 was $50.8 million, a
decrease of 16.8% from $61.0 million for the fourth quarter of 2019
(see “Use of Non-GAAP Financial Measures” below). The decrease was
primarily due to the business shutdowns related to the Covid-19
pandemic as noted above, partially offset by incremental government
projects as noted above. Net Revenue for the fourth quarter of 2020
in the Energy segment was $37.2 million, a decrease of 21.1% from
same period last year. Net Revenue for the fourth quarter of 2020
in the Engineering and Consulting Segment was $13.5 million,
remaining approximately flat when compared to the same period last
year.
Direct costs of contract revenue were $62.4 million for the
fourth quarter of 2020, a decrease of 27.6%, from $86.2 million for
the fourth quarter of 2019. The decrease was primarily due to
decreased contract revenues from our direct install programs for
small businesses in our Energy segment, as noted above, which
generally use a higher percentage of subcontractor services than
other projects in our Energy segment.
Total general and administrative expenses for the fourth quarter
of 2020 was $40.2 million, an increase of 6.7% from $37.7 million
for the fourth quarter of 2019. The increase was primarily due to
an increase of $6.5 million in contingent consideration, combined
with higher amortization of intangible assets derived from prior
acquisitions, partially offset by lower employee benefit
expenses.
Total other income (expense), net for the fourth quarter of 2020
was $0.2 million, a decrease of 85.0% from $1.1 million for the
fourth quarter of 2019. The decrease was primarily due to increased
interest income combined with lower interest expense.
Income tax benefit was $1.9 million for the fourth quarter of
2020, compared to income tax expense of $1.2 million for the prior
year period. The increase was primarily due to increased tax
deductions and various tax credits.
Net loss for the fourth quarter of 2020 was $4.0 million, or
$(0.33) per diluted share, as compared to net income of $3.2
million, or $0.27 per diluted share, for the fourth quarter of
2019. The decrease in operating performance was primarily driven by
decreases in contract revenue as a result of Covid-19 combined with
higher expenses related to Contingent Consideration. Adjusted Net
Income (see “Use of Non-GAAP Financial Measures” below) for the
fourth quarter of 2020 was $5.6 million, or $0.46 per diluted
share, as compared to Adjusted Net Income of $11.5 million, or
$0.97 per diluted share, for the fourth quarter of 2019.
Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below)
was $8.6 million for the fourth quarter of 2020, a decrease of
38.0% from $13.8 million for the fourth quarter of 2019.
Fiscal Year 2020 Financial Results
Consolidated contract revenue for fiscal 2020 was $391.0
million, a decrease of 11.8% from $443.1 million for fiscal 2019.
Consolidated contract revenue for the Energy segment was $324.2
million for fiscal 2020, a decrease of 12.6%, primarily due to
decreased contract revenues from our direct install programs for
small businesses, partially offset by an increase in contract
revenue generated from government projects of 25.1% and incremental
contract revenue of $22.0 million from the acquisitions of Energy
and Environmental Economics, Inc. (“E3, Inc.”) and Onsite Energy
Corporation (“Onsite Energy”) on October 28, 2019, and July 2,
2019, respectively. Contract revenues for our direct install
programs for small businesses decreased as a result of the business
shutdowns resulting from the Covid-19 pandemic and efforts to limit
its spread that started in March 2020, which we estimate to have
reduced our revenue by approximately 20% from our planned
pre-pandemic levels for 2020. Consolidated contract revenue for the
Engineering and Consulting segment was $66.8 million, a decrease of
7.7% from the fiscal 2019. Contract revenue for the Engineering and
Consulting segment decreased primarily due to decreased
subcontractor revenues combined with a reduction of scope of work
related to one of our customers implemented during the second
quarter of 2020. Our revenues in this segment have been minimally
affected by Covid-19 as the services in this segment have generally
been deemed “essential” by the government and continue to operate
while abiding social distancing measures.
Net Revenue for fiscal 2020 was $194.5 million, a decrease of
2.5% from $199.5 million for fiscal 2019. The decrease was
primarily due to Covid-19 work suspensions in our direct install
programs for small businesses in our Energy segment, which
generally use a higher percentage of subcontractor services than
other projects in our Energy segment, partially offset by an
increase in contract revenue generated from government projects and
incremental contract revenue from our acquisitions of E3, Inc. and
Onsite Energy. Net Revenue in the Energy segment was $137.4 million
for fiscal 2020, a decrease of 3.9% over the same period last year.
Net Revenue in the Engineering and Consulting segment was $57.2
million for fiscal 2020, which remained consistent with the same
period last year.
Direct costs of contract revenue were $261.6 million for fiscal
2020, a decrease of 15.1%, from $308.1 million for fiscal 2019.
Direct costs of consolidated contract revenue decreased as a result
of decreased contract revenues from our direct install programs for
small businesses in our Energy segment, partially offset by an
increase in contract revenue generated from government projects of
25.1%, combined with an additional $7.9 million of direct costs of
contract revenue related to our acquisitions of E3, Inc. and Onsite
Energy.
Total general and administrative expenses for fiscal 2020 was
$145.6 million, an increase of 15.9% from $125.6 million for fiscal
2019, driven primarily by an increase in contingent consideration
expense, combined with increased personnel and facilities expenses
related to our acquisitions of E3., Inc. and Onsite Energy, and
increases in corporate general and administrative expenses,
partially offset by a decrease in expenses in the Engineering and
Consulting segment and cost-savings measures implemented in
response to Covid-19.
Total other income (expense), net was $3.4 million of expense
for fiscal 2020, compared with $4.7 million for fiscal 2019. The
decrease in total other expense, net was primarily the result of
the recognition of $0.6 million in income from an indemnification
agreement and higher interest income. Interest expense was
relatively flat year over year.
Income tax benefit of $5.2 million for fiscal 2020, compared to
income tax benefit of $0.2 million for the prior year period. The
increase is primarily attributable to our loss before income tax
combined with an increase in various tax deductions and tax
credits.
Net loss for fiscal 2020 was $14.5 million, or $(1.23) per
diluted share, as compared to net income of $4.8 million, or $0.41
per diluted share, for fiscal 2019. The decrease was primarily
driven by decreases in contract revenue as a result of Covid-19
combined with increases in stock-based compensation, intangible
asset amortization from acquisitions, and contingent consideration
charges. Adjusted Net Income (see “Use of Non-GAAP Financial
Measures” below) for fiscal 2020 was $15.3 million, or $1.30 per
diluted share, as compared to Adjusted Net Income of $26.7 million,
or $2.27 per diluted share, for fiscal 2019.
Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below)
was $28.1 million for fiscal 2020, compared to $37.7 million for
the fiscal 2019.
Liquidity and Capital Resources
As of January 1, 2021, we had $28.4 million of cash and cash
equivalents. Cash flows provided by operating activities were $47.0
million for fiscal year 2020, as compared to cash flows provided by
operating activities of $11.6 million for fiscal year 2019. The
higher cash flows resulted primarily due to improvement in cash
collections, reductions in working capital requirements as a result
of the reduction of revenues from the suspension of our small
business energy programs, and incremental cash flow from our fiscal
2019 acquisitions of E3, Inc. and Onsite Energy.
As of January 1, 2020, we had $112.0 million outstanding on our
Credit Facilities. We had no borrowings under our Revolving Credit
Facility with $50 million available. We believe that we have
adequate resources and liquidity to fund future cash requirements
and debt repayments with cash generated from operations, existing
cash balances and availability under our revolving credit facility
for the next 12 months. However, as a result of forecasted
increased working capital requirements related to our newly signed
$781 million in California Owned Utility Contracts, we may seek to
modify certain terms under our bank borrowing facilities to ensure
an adequate margin for certain covenant compliance
obligations.
The impact of the Covid-19 outbreak on our business, results of
operations, financial condition and cash flows in future periods
will depend largely on future developments, including the duration
and spread of the outbreak in the U.S., its severity, the actions
to contain the novel coronavirus or treat its impact, and how
quickly and to what extent normal economic and operating conditions
can resume.
Environmental, Social and Governance (“ESG”)
Willdan views its ESG efforts as integral to its business, with
initiatives consistent with its objective of long-term value
creation. “Climate change mitigation is embedded in Willdan’s DNA,
and our work tackles this essential challenge every day,” said Tom
Brisbin, Chairman and Chief Executive Officer. “Our teams design,
lead, and support projects that help customers reduce their carbon
intensity to become cleaner, more sustainable organizations.”
Willdan is committed to environmental stewardship; the health,
welfare, and development of its employees; and the support of its
local communities. For more information and to view Willdan’s
inaugural sustainability report, visit the Willdan Group website at
www.willdan.com.
Q4 2020 Conference Call
Willdan will be hosting a conference call related to fourth
quarter earnings today, March 11, 2021, at 5:30 p.m. Eastern/2:30
p.m. Pacific. To access the call, listeners should dial
866-248-8441 approximately 10 minutes prior to the scheduled start
time and enter confirmation code 3513136. The conference call will
be webcast simultaneously on Willdan’s website at
ir.willdangroup.com/events-presentations.
A replay of the conference call will be available until March
25, 2021 by calling 888-203-1112 and entering confirmation code
3513136.
An Investor Report containing supplemental financial information
can also be accessed on the home page of Willdan’s investor
relations website.
About Willdan Group, Inc.
Willdan is a nationwide provider of professional technical and
consulting services to utilities, government agencies, and private
industry. Willdan’s service offerings span a broad set of
complementary disciplines that include electric grid solutions,
energy efficiency and sustainability, engineering and planning, and
municipal financial consulting. For additional information, visit
Willdan's website at www.willdan.com.
Use of Non-GAAP Financial Measures
“Net Revenue,” defined as contract revenue as reported in
accordance with GAAP minus subcontractor services and other direct
costs, is a non-GAAP financial measure, Net Revenue is a
supplemental measure that Willdan believes enhances investors’
ability to analyze Willdan’s business trends and performance
because it substantially measures the work performed by Willdan’s
employees. In the course of providing services, Willdan routinely
subcontracts various services. Generally, these subcontractor
services and other direct costs are passed through to Willdan’s
clients and, in accordance with U.S. generally accepted accounting
principles (“GAAP”) and industry practice, are included in
Willdan’s revenue when it is Willdan’s contractual responsibility
to procure or manage such subcontracted activities. Because
subcontractor services and other direct costs can vary
significantly from project to project and period to period, changes
in revenue may not necessarily be indicative of Willdan’s business
trends. Accordingly, Willdan segregates subcontractor services and
other direct costs from revenue to promote a better understanding
of Willdan’s business by evaluating revenue exclusive of
subcontract services and other direct costs associated with
external service providers. A reconciliation of Willdan’s contract
revenue as reported in accordance with GAAP to Net Revenue is
provided at the end of this press release.
“Adjusted EBITDA,” defined as net income plus interest expense,
income tax expense, stock-based compensation, interest accretion,
depreciation and amortization, transaction costs and gain on sale
of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a
supplemental measure used by Willdan’s management to measure
Willdan’s operating performance. Willdan believes Adjusted EBITDA
is useful because it allows Willdan’s management to evaluate its
operating performance and compare the results of its operations
from period to period and against its peers without regard to its
financing methods, capital structure and non-operating expenses.
Willdan uses Adjusted EBITDA to evaluate its performance for, among
other things, budgeting, forecasting and incentive compensation
purposes.
Certain items excluded from Adjusted EBITDA are significant
components in understanding and assessing a company’s financial
performance, such as a company’s costs of capital, stock-based
compensation, as well as the historical costs of depreciable
assets. A reconciliation of net income as reported in accordance
with GAAP to Adjusted EBITDA is provided at the end of this press
release.
“Adjusted Net Income,” defined as net income plus stock-based
compensation, intangible amortization and transaction costs, each
net of tax, is a non-GAAP financial measure.
“Adjusted Diluted EPS,” defined as net income plus stock-based
compensation, intangible amortization and transaction costs, each
net of tax, all divided by the diluted weighted-average shares
outstanding, is a non-GAAP financial measure. Adjusted Net Income
and Adjusted Diluted EPS are supplemental measures used by
Willdan’s management to measure its operating performance. Willdan
believes Adjusted Net Income and Adjusted Diluted EPS are useful
because they allow Willdan’s management to more closely evaluate
and explain the operating results of Willdan’s business by removing
certain non-operating expenses. Reconciliations of net income as
reported in accordance with GAAP to Adjusted Net Income and diluted
EPS as reported in accordance with GAAP to Adjusted Diluted EPS are
provided at the end of this press release.
Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted
Net Income and Adjusted Diluted EPS have limitations as analytical
tools and may differ from other companies reporting similarly named
measures or from similarly named measures Willdan has reported in
prior periods. 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 revenue, net income and diluted EPS.
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, as amended, including statements regarding the impact of
Covid-19 on Willdan’s business, Willdan’s ability to capitalize on
increased energy efficiency spending in large markets and expected
benefits from its acquisitions. All statements other than
statements of historical fact included in this press release are
forward-looking statements. These forward-looking statements
involve risks and uncertainties including, but not limited to, the
extent to which the Covid-19 pandemic and measures taken to contain
its spread ultimately impact Willdan’s business, results of
operation and financial condition, including the speed with which
its various direct install programs for small businesses are able
to resume normal operations following government mandated shutdowns
and phased re-openings; and Willdan’s ability 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. Important factors that could cause actual results to
differ materially from its expectations include, but are not
limited to, Willdan’s ability to adequately complete projects in a
timely manner, Willdan’s ability to compete successfully in the
highly competitive energy services market, changes in state, local
and regional economies and government budgets, Willdan’s ability to
win new contracts, to renew existing contracts and to compete
effectively for contracts awarded through bidding processes,
Willdan’s ability to successfully integrate its acquisitions,
including its acquisitions of Onsite Energy and E3, Inc., and
execute on its growth strategy, Willdan’s ability to make principal
and interest payments as they come due and comply with financial
and other covenants in its credit agreement, and Willdan’s ability
to obtain financing and to refinance its outstanding debt as it
matures.
The factors noted above and risks included in Willdan’s other
SEC filings may be increased or intensified as a result of the
Covid-19 pandemic, including if there is a resurgence of the
Covid-19 virus after the initial outbreak subsides. The extent to
which the Covid-19 pandemic ultimately impacts Willdan’s business,
results of operations and financial condition will depend on future
developments, which are highly uncertain and cannot be predicted.
See the risk factor in Part II, Item 1A. “Risk Factors” in
Willdan’s Quarterly Report on Form 10-Q for the quarter ended April
3, 2020, “The Covid-19 pandemic and health and safety measures
intended to reduce its spread have adversely affected, and may
continue to adversely affect, our business, results of operations
and financial condition.” for more information. All written and
oral forward-looking statements attributable to Willdan, or persons
acting on its behalf, are expressly qualified in their entirety by
the cautionary statements and risk factors disclosed from time to
time in Willdan’s reports filed with the Securities and Exchange
Commission, including, but not limited to, the Annual Report on
Form 10-K filed for the year ended December 27, 2019 and Quarterly
Report on Form 10-Q filed for the quarter ended April 3, 2020, as
such disclosures may be amended, supplemented or superseded from
time to time by other reports Willdan files with the Securities and
Exchange Commission, including subsequent Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q or Current Reports on Form
8-K. 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 unless
required by law.
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value)
January 1,
December 27,
2021
2019
Assets
Current assets:
Cash and cash equivalents
$
28,405
$
5,452
Accounts receivable, net of allowance for
doubtful accounts of $2,127 and $1,147 at January 1, 2021 and
December 27, 2019, respectively
60,403
57,504
Contract assets
62,426
101,418
Other receivables
6,405
4,845
Prepaid expenses and other current
assets
5,564
6,254
Total current assets
163,203
175,473
Equipment and leasehold improvements,
net
12,506
12,051
Goodwill
130,124
127,647
Right-of-use assets
20,130
22,297
Other intangible assets, net
64,256
76,837
Other assets
5,993
16,296
Deferred income taxes, net
14,111
9,312
Total assets
$
410,323
$
439,913
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
41,372
$
34,000
Accrued liabilities
41,754
67,615
Contingent consideration payable
12,321
5,155
Contract liabilities
7,434
5,563
Notes payable
14,996
13,720
Finance lease obligations
248
375
Lease liability
5,844
5,550
Total current liabilities
123,969
131,978
Contingent consideration payable
2,999
4,891
Notes payable
98,178
116,631
Finance lease obligations, less current
portion
236
191
Lease liability, less current portion
15,649
18,411
Other noncurrent liabilities
128
533
Total liabilities
241,159
272,635
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000
shares authorized, no shares issued and outstanding
—
—
Common stock, $0.01 par value, 40,000
shares authorized; 12,160 and 11,497 shares issued and outstanding
at January 1, 2021 and December 27, 2019, respectively
122
115
Additional paid-in capital
149,014
132,547
Accumulated other comprehensive loss
(488
)
(396
)
Retained earnings
20,516
35,012
Total stockholders’ equity
169,164
167,278
Total liabilities and stockholders’
equity
$
410,323
$
439,913
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per
share amounts)
Three Months Ended
Year Ended
January 1,
December 27,
January 1,
December 27,
2021
2019
2021
2019
Contract revenue
$
96,897
$
129,416
$
390,980
$
443,099
Direct costs of contract revenue
(inclusive of directly related depreciation and amortization):
Salaries and wages
16,252
17,806
65,149
64,485
Subcontractor services and other direct
costs
46,143
68,393
196,438
243,641
Total direct costs of contract revenue
62,395
86,199
261,587
308,126
General and administrative expenses:
Salaries and wages, payroll taxes and
employee benefits
17,956
20,136
71,229
66,303
Facilities and facility related
2,484
2,499
10,481
8,568
Stock-based compensation
3,310
3,964
16,113
12,112
Depreciation and amortization
4,419
3,719
18,743
15,027
Other
12,051
7,370
29,054
23,600
Total general and administrative
expenses
40,220
37,688
145,620
125,610
Income (Loss) from operations
(5,718
)
5,529
(16,227
)
9,363
Other income (expense):
Interest expense, net
(1,085
)
(1,301
)
(5,068
)
(4,900
)
Other, net
914
162
1,626
193
Total other expense, net
(171
)
(1,139
)
(3,442
)
(4,707
)
Income (Loss) before income taxes
(5,889
)
4,390
(19,669
)
4,656
Income tax (benefit) expense
(1,892
)
1,188
(5,173
)
(185
)
Net income (loss)
(3,997
)
3,202
(14,496
)
4,841
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative
contracts
114
84
(92
)
(396
)
Comprehensive income (loss)
$
(3,883
)
$
3,286
$
(14,588
)
$
4,445
Earnings (Loss) per share:
Basic
$
(0.33
)
$
0.28
$
(1.23
)
$
0.43
Diluted
$
(0.33
)
$
0.27
$
(1.23
)
$
0.41
Weighted-average shares outstanding:
Basic
12,011
11,357
11,793
11,162
Diluted
12,011
11,913
11,793
11,766
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended
January 1,
December 27,
2021
2019
Cash flows from operating activities:
Net income (loss)
$
(14,496
)
$
4,841
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
18,743
15,472
Deferred income taxes, net
(5,209
)
(209
)
(Gain) loss on sale/disposal of
equipment
(15
)
(8
)
Provision for doubtful accounts
1,330
1,051
Stock-based compensation
16,113
12,112
Accretion and fair value adjustments of
contingent consideration
7,707
(302
)
Changes in operating assets and
liabilities, net of effects from business acquisitions:
Accounts receivable
(4,229
)
11,627
Contract assets
35,498
(34,598
)
Other receivables
(1,192
)
(2,714
)
Prepaid expenses and other current
assets
577
(343
)
Other assets
9,955
(6,520
)
Accounts payable
7,372
(6,294
)
Accrued liabilities
(27,210
)
16,761
Contract liabilities
1,871
315
Right-of-use assets
210
430
Net cash provided by operating
activities
47,025
11,621
Cash flows from investing activities:
Purchase of equipment and leasehold
improvements
(5,076
)
(6,637
)
Proceeds from sale of equipment
17
45
Cash paid for acquisitions, net of cash
acquired
—
(71,756
)
Net cash used in investing activities
(5,059
)
(78,348
)
Cash flows from financing activities:
Payments on contingent consideration
(1,433
)
(1,381
)
Payments on notes payable
(205
)
(1,842
)
Payments on debt issuance costs
(327
)
(709
)
Proceeds from notes payable
1,140
—
Borrowings under term loan facility and
line of credit
24,000
138,000
Repayments under term loan facility and
line of credit
(42,000
)
(78,000
)
Principal payments on finance leases
(549
)
(639
)
Proceeds from stock option exercise
1,082
931
Proceeds from sales of common stock under
employee stock purchase plan
2,224
1,740
Shares used to pay taxes on stock
grants
(2,946
)
(2,880
)
Restricted Stock Award and Units
1
—
Proceeds from unregistered sales of
equity
—
1,700
Net cash (used in) provided by financing
activities
(19,013
)
56,920
Net increase (decrease) in cash and cash
equivalents
22,953
(9,807
)
Cash and cash equivalents at beginning of
period
5,452
15,259
Cash and cash equivalents at end of
period
$
28,405
$
5,452
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest
$
5,031
$
4,169
Income taxes
174
4,052
Supplemental disclosures of noncash
investing and financing activities:
Loss on cash flow hedge valuations, net of
tax
(92
)
(396
)
Contingent consideration related to
business acquisitions
—
—
Other working capital adjustment
1,179
—
Equipment acquired under finance
leases
467
661
Willdan Group, Inc. and
Subsidiaries
Reconciliation of GAAP Revenue
to Net Revenue
(in thousands)
(Non-GAAP Measure)
Three Months Ended
Year Ended
January 1,
December 27,
January 1,
December 27,
2021
2019
2021
2019
Consolidated
Contract revenue
$
96,897
$
129,416
$
390,980
$
443,099
Subcontractor services and other direct
costs
46,143
68,393
196,438
243,641
Net Revenue
$
50,754
$
61,023
$
194,542
$
199,458
Energy segment
Contract revenue
$
81,784
$
112,806
$
324,178
$
370,716
Subcontractor services and other direct
costs
44,566
65,662
186,824
227,814
Net Revenue
$
37,218
$
47,144
$
137,354
$
142,902
Engineering and Consulting
segment
Contract revenue
$
15,113
$
16,610
$
66,802
$
72,383
Subcontractor services and other direct
costs
1,577
2,731
9,614
15,827
Net Revenue
$
13,536
$
13,879
$
57,188
$
56,556
Willdan Group, Inc. and
Subsidiaries
Reconciliation of GAAP Net
Income to Adjusted EBITDA
(in thousands)
(Non-GAAP Measure)
Three Months Ended
Year Ended
January 1,
December 27,
January 1,
December 27,
2021
2019
2021
2019
Net income (loss)
$
(3,997
)
$
3,202
$
(14,496
)
$
4,841
Interest expense
1,085
1,301
5,068
4,900
Income tax expense (benefit)
(1,892
)
1,188
(5,173
)
(185
)
Stock-based compensation
3,310
3,964
16,113
12,112
Interest accretion (1)
5,648
238
7,707
(302
)
Depreciation and amortization
4,419
3,848
18,743
15,472
Transaction costs (2)
13
101
179
886
(Gain) Loss on sale of equipment
—
(3
)
(15
)
(8
)
Adjusted EBITDA
$
8,586
$
13,839
$
28,126
$
37,716
(1)
Interest accretion represents the imputed
interest and fair value adjustments to estimated contingent
consideration.
(2)
Transaction costs represents acquisition
and acquisition related costs.
Willdan Group, Inc. and
Subsidiaries
Reconciliation of GAAP Net
Income to Adjusted Net Income and Adjusted Diluted EPS
(in thousands, except per
share amounts)
(Non-GAAP Measure)
Three Months Ended
Year Ended
January 1,
December 27,
January 1,
December 27,
2021
2019
2021
2019
Net income (loss)
$
(3,997
)
$
3,202
$
(14,496
)
$
4,841
Adjustment for stock-based
compensation
3,310
3,964
16,113
12,112
Tax effect of stock-based compensation
(691
)
587
(3,366
)
(1,369
)
Adjustment for intangible amortization
3,136
2,691
13,657
11,621
Tax effect of intangible amortization
(655
)
830
(2,853
)
(1,313
)
Adjustment for Interest Accretion
5,648
—
7,707
—
Tax effect on Interest Accretion
(1,180
)
—
(1,610
)
—
Adjustment for transaction costs
13
101
179
886
Tax effect of transaction costs
(3
)
88
(37
)
(100
)
Adjusted Net Income
$
5,581
$
11,463
$
15,294
$
26,678
Diluted weighted-average shares
outstanding
12,011
11,913
11,793
11,766
Diluted earnings (loss) per share
$
(0.33
)
$
0.27
$
(1.23
)
$
0.41
Impact of adjustment:
Stock-based compensation per share
0.28
0.33
1.37
1.03
Tax effect of stock-based compensation per
share
(0.07
)
0.05
(0.29
)
(0.12
)
Intangible amortization per share
0.26
0.23
1.16
0.99
Tax effect of intangible amortization per
share
(0.05
)
0.07
(0.24
)
(0.11
)
Adjustment for Interest Accretion
0.47
—
0.65
—
Tax effect on Interest Accretion
(0.10
)
—
(0.14
)
—
Transaction costs per share
0.00
0.01
0.02
0.08
Tax effect of transaction costs per
share
(0.00
)
0.01
—
(0.01
)
Adjusted Diluted EPS
$
0.46
$
0.97
$
1.30
$
2.27
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210311005993/en/
Willdan Group, Inc. Stacy McLaughlin Chief Financial
Officer Tel: 714-940-6300 smclaughlin@willdan.com
Al Kaschalk VP Investor Relations Tel: 310-922-5643
akaschalk@willdan.com
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