Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN), a provider of
professional technical and consulting services, today reported
financial results for its second quarter ended July 3, 2020.
Second Quarter 2020 Summary
- Consolidated contract revenue of $83.5 million, a decrease of
20.0%
- Net revenue of $43.2 million, a decrease of 7.7%
- Net loss of $5.0 million, or $(0.43) per diluted share
- Adjusted net income of $2.0 million, or $0.17 per diluted
share
- Adjusted EBITDA of $7.2 million, or 16.7% of net revenue
- Cash provided by operating activities of $12.8 million
Six Months Year to Date 2020 Summary
- Consolidated contract revenue of $189.6 million, a decrease of
3.4%
- Net revenue of $92.8 million, an increase of 5.9%
- Net loss of $13.1 million, or $(1.13) per diluted share
- Adjusted net income of $0.5 million, or $0.04 per diluted
share
- Adjusted EBITDA of $8.5 million, or 9.2% of net revenue
- Cash provided by operating activities of $29.2 million
For the second quarter of 2020, Willdan reported consolidated
contract revenue of $83.5 million and net loss of $5.0 million, or
$(0.43) per diluted share. This compares with consolidated contract
revenue of $104.4 million and net income of $1.6 million, or $0.14
per diluted share, for the second quarter of 2019. For the second
quarter of 2020, Net Revenue, defined as revenue, net of
subcontractor services and other direct costs (see “Use of Non-GAAP
Financial Measures” below), was $43.2 million, a decrease 7.7%
compared to the same period in fiscal year 2019.
“In the second quarter, revenue and net income were down due to
the pandemic, but adjusted EBITDA was down only marginally compared
with last year, indicating that we did a good job of controlling
our costs. We also continued our focus on cash flow, and this was
very successful. We have now generated $29.2 million in cash flow
from operations in the first half of this year, a company record.
Our business environment continued to improve each month in the
quarter, and the improvement has continued thus far in the third
quarter. We currently estimate that pandemic related slowdowns and
work suspensions are reducing our revenue by approximately 20% from
pre-pandemic levels, an improvement from the estimated 40%
reduction that we saw in April.
"The most significant pandemic related impacts to our business
are now occurring in California to our direct install business. Our
business in New York has been improving over the last month and all
New York utility programs have restarted. Our other programs, which
generate approximately 60% of our gross contract revenue, have
either been determined to be “essential” by government agencies or
have continued to progress without significant impacts. In response
to the Covid-19 pandemic, the Company has taken, and will continue
to take, temporary precautionary measures intended to help minimize
the risk of Covid-19 to its employees, including requiring the
majority of its employees to work remotely, suspending
non-essential travel and restricting in-person work-related
meetings. The Company expects to continue to implement these
measures until it has determined that the Covid-19 pandemic is
adequately contained for purposes of its business, and may take
further actions as government authorities require or recommend or
as it determines to be in the best interests of its employees,
customers, and business partners including subcontractors and
material suppliers,” said Tom Brisbin, Willdan’s Chairman and Chief
Executive Officer.
Second Quarter 2020 Financial Highlights
Consolidated contract revenue for the second quarter of 2020 was
$83.5 million, a decrease of 20.0% from $104.4 million for the
second quarter of 2019. Consolidated contract revenue for the
Energy segment was $66.7 million for the second quarter of 2020, a
decrease of 21.8% from the second quarter of 2019 primarily due to
decreased contract revenues from our direct install programs for
small businesses as a result of the effects of Covid-19, partially
offset by an increase in revenue generated from government projects
and incremental contract revenue from the acquisitions of Onsite
Energy Corporation (“Onsite Energy”), and Energy and Environmental
Economics, Inc. (“E3, Inc.”). Consolidated contract revenue for the
Engineering and Consulting segment was $16.8 million, a decrease of
11.9% from the second quarter of 2019, primarily due to a reduction
in scope of work from one of our customers.
Net Revenue for the second quarter of 2020 was $43.2 million, a
decrease of 7.7% from $46.8 million for the second quarter of 2019.
The decrease was primarily due to Covid-19 work suspensions in our
direct install programs for small businesses in our Energy segment
partially offset by an increase in revenue generated from
government projects combined with incremental revenue from our
acquisitions of Onsite Energy and E3, Inc. Net Revenue in the
Energy segment was $29.1 million for the second quarter of 2020, a
decrease of 10.2% over the same period last year. Net Revenue in
the Engineering and Consulting segment was $14.1 million for the
second quarter of 2020, a decrease of 1.8% over the same period
last year.
Direct costs of contract revenue were $54.0 million for the
second quarter of 2020, a decrease of 26.3%, from $73.2 million for
the second quarter of 2019. The decrease was primarily due to
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 in
our Energy segment, combined with additional direct costs of
contract revenue related to our acquisitions of Onsite Energy and
E3., Inc.
Total general and administrative expenses for the second quarter
of 2020 was $33.4 million, an increase of 17.7% from $28.4 million
for the second quarter of 2019, driven primarily by intangible
amortization due to our acquisitions of Onsite Energy and E3, Inc.,
and increased stock-based compensation expense.
Interest expense was flat for the second quarter of 2020,
compared to the second quarter of 2019.
Income tax benefit was flat for the three months ended July 3,
2020 compared to second quarter of 2019. Changes within the tax
benefit amount were primarily attributable to fluctuations within
various tax deductions and tax credits.
Net loss for the second quarter of 2020 was $5.0 million, or
$(0.43) per diluted share, as compared to net income of $1.6
million, or $0.14 per diluted share, for the second quarter of
2019. The decrease in operating performance was a result of the
above factors. Adjusted Net Income (see “Use of Non-GAAP Financial
Measures” below) for the second quarter of 2020 was $2.0 million,
or $0.17 per diluted share, as compared to Adjusted Net Income of
$5.1 million, or $0.43 per diluted share, for the second quarter of
2019.
Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below)
was $7.2 million for the second quarter of 2020, a decrease of 5.0%
from $7.6 million for the second quarter of 2019.
Six Months Year to Date 2020 Financial Highlights
Consolidated contract revenue for six months ended July 3, 2020
was $189.6 million, a decrease of 3.4% from $196.2 million for six
months ended June 28, 2019. Consolidated contract revenue for the
Energy segment was $154.5 million for six months ended July 3,
2020, a decrease of 3.4%, 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 and incremental contract revenue from the
acquisitions of Onsite Energy and E3, Inc. Consolidated contract
revenue for the Engineering and Consulting segment was $35.1
million, a decrease of 3.2% from the six months ended June 28,
2019, primarily due to a reduction in scope of work from one of our
customers.
Net Revenue for six months ended July 3, 2020 was $92.8 million,
an increase of 5.9% from $87.6 million for six months ended June
28, 2019. The increase was primarily due to an increase in contract
revenue generated from government projects and incremental contract
revenue from our acquisitions of Onsite Energy and E3, Inc.,
partially offset by Covid-19 work suspensions in our direct install
programs for small businesses in our Energy segment. Net Revenue in
the Energy segment was $63.6 million for six months ended July 3,
2020, an increase of 7.2% over the same period last year. Net
Revenue in the Engineering and Consulting segment was $29.2 million
for six months ended July 3, 2020, an increase of 3.2% over the
same period last year.
Direct costs of contract revenue were $129.3 million for six
months ended July 3, 2020, a decrease of 7.0%, from $139.1 million
for six months ended June 28, 2019. The decrease was primarily 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 in our Energy segment, combined with additional direct
costs of contract revenue related to our acquisitions of Onsite
Energy and E3, Inc.
Total general and administrative expenses for six months ended
July 3, 2020 was $72.3 million, an increase of 32.6% from $54.5
million for six months ended June 28, 2019, driven primarily by
personnel and facilities expenses related to our acquisitions of
Onsite Energy and E3., Inc. combined with increases in corporate
general and administrative expenses, partially offset by a decrease
in expenses in the Engineering and Consulting segment and
cost-savings measures in response to Covid-19.
Interest expense was $2.8 million for six months ended July 3,
2020, compared with $2.3 million for six months ended June 28,
2019. The increase in interest expense was the result of borrowings
under our credit facilities related to our acquisitions of Onsite
Energy and E3, Inc.
We recorded an income tax benefit of $1.7 million for six months
ended July 3, 2020, compared to income tax benefit of $1.0 million
for the prior year period. The increase in the income tax benefit
is primarily attributable to our loss before income tax, partially
offset by a decrease in various tax deductions and tax credits.
Net loss for six months ended July 3, 2020 was $13.1 million, or
$(1.13) per diluted share, as compared to net income of $1.2
million, or $0.10 per diluted share, for six months ended June 28,
2019. The decrease was primarily driven by decreases in contract
revenue as a result of Covid-19 combined with increases in
stock-based compensation and intangible asset amortization from
acquisitions. Adjusted Net Income (see “Use of Non-GAAP Financial
Measures” below) for six months ended July 3, 2020 was $0.5
million, or $0.04 per diluted share, as compared to Adjusted Net
Income of $7.5 million, or $0.64 per diluted share, for six months
ended June 28, 2019.
Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below)
was $8.5 million for six months ended July 3, 2020, compared to
$12.2 million for the six months ended June 28, 2019.
Liquidity and Capital Resources
As of July 3, 2020, we had $17.2 million of cash and cash
equivalents. Cash flows provided by operating activities were $29.2
million for the six months ended July 3, 2020, as compared to cash
flows provided by operating activities of $12.5 million for the six
months ended June 28, 2019. Willdan reported $43.0 million in
accounts receivable, net at July 3, 2020, as compared to $46.8
million at June 28, 2019. Changes in cash flows provided by
operating activities for the six months ended July 3, 2020 resulted
primarily as result of our acquisitions of Onsite Energy and E3,
Inc., improvement in cash collections and significant reductions in
working capital requirements as a result of the reduction of
revenues from the suspension of our direct install energy programs
for small businesses.
On May 6, 2020, we amended our credit agreement to provide
increased flexibility under our debt covenants. Among other things,
the amendment also temporarily changes the interest rate for
borrowings under our credit facilities and prohibits share
repurchases, certain acquisitions and borrowings under the delayed
draw facility, in each case subject to certain exceptions. As of
July 3, 2020, we had $118.5 million outstanding on our Credit
Facilities. We had no borrowings under our Revolving Credit
Facility with $50 million available. Combined with availability
under our revolving credit facility, we believe the enhanced
liquidity provides a cushion against liquidity disruptions. For
2020, interest expense is estimated to be approximately $6.0
million.
Second Quarter 2020 Conference Call Details and Investor
Report
Chief Executive Officer Thomas Brisbin and Chief Financial
Officer Stacy McLaughlin will host a conference call today, August
6, 2020, at 5:30 p.m. Eastern/2:30 p.m. Pacific to discuss
Willdan’s financial results and provide a business update.
Interested parties may participate in the conference call by
dialing 866-278-7952 and providing conference ID 8308032. The
conference call will be webcast simultaneously on Willdan’s website
at www.willdan.com under Investors: Events & Presentations and
the replay will be archived for at least 12 months.
The telephonic replay of the conference call may be accessed
following the call by dialing 888-203-1112 and entering the
passcode 8308032. The replay will be available through August 20,
2020.
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 Lime Energy, The Weidt Group, 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)
July 3,
December 27,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
17,160
$
5,452
Accounts receivable, net of allowance for
doubtful accounts of $2,079 and $1,147 at July 3, 2020 and December
27, 2019, respectively
43,001
57,504
Contract assets
62,062
101,418
Other receivables
4,354
4,845
Prepaid expenses and other current
assets
4,884
6,254
Total current assets
131,461
175,473
Equipment and leasehold improvements,
net
12,791
12,051
Goodwill
130,236
127,647
Right-of-use assets
22,679
22,297
Other intangible assets, net
70,121
76,837
Other assets
13,452
16,296
Deferred income taxes, net
12,628
9,312
Total assets
$
393,368
$
439,913
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
35,070
$
34,000
Accrued liabilities
35,948
67,615
Contingent consideration payable
6,366
5,155
Contract liabilities
7,157
5,563
Notes payable
13,866
13,720
Finance lease obligations
332
375
Lease liability
5,994
5,550
Total current liabilities
104,733
131,978
Contingent consideration payable
3,877
4,891
Notes payable
104,592
116,631
Finance lease obligations, less current
portion
256
191
Lease liability, less current portion
17,935
18,411
Other noncurrent liabilities
579
533
Total liabilities
231,972
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; 12,012 and 11,497 shares issued and outstanding
at July 3, 2020 and December 27, 2019, respectively
120
115
Additional paid-in capital
140,165
132,547
Accumulated other comprehensive loss
(762)
(396)
Retained earnings
21,873
35,012
Total stockholders’ equity
161,396
167,278
Total liabilities and stockholders’
equity
$
393,368
$
439,913
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per
share amounts)
Three Months Ended
Six Months Ended
July 3,
June 28,
July 3,
June 28,
2020
2019
2020
2019
Contract revenue
$
83,549
$
104,396
$
189,575
$
196,189
Direct costs of contract revenue
(inclusive of directly related depreciation and amortization):
Salaries and wages
13,650
15,624
32,565
30,534
Subcontractor services and other direct
costs
40,355
57,623
96,775
108,571
Total direct costs of contract revenue
54,005
73,247
129,340
139,105
General and administrative expenses:
Salaries and wages, payroll taxes and
employee benefits
15,331
15,437
35,743
30,406
Facilities and facility related
2,642
2,047
5,336
3,819
Stock-based compensation
4,230
2,224
8,825
4,041
Depreciation and amortization
5,466
2,866
9,985
5,520
Other
5,716
5,802
12,456
10,759
Total general and administrative
expenses
33,385
28,376
72,345
54,545
Income (Loss) from operations
(3,841)
2,773
(12,110)
2,539
Other income (expense):
Interest expense, net
(1,257)
(1,221)
(2,770)
(2,342)
Other, net
23
18
46
29
Total other expense, net
(1,234)
(1,203)
(2,724)
(2,313)
Income (Loss) before income taxes
(5,075)
1,570
(14,834)
226
Income tax benefit
(90)
(70)
(1,695)
(997)
Net income (loss)
(4,985)
1,640
(13,139)
1,223
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative
contracts
83
(219)
(366)
(438)
Comprehensive income (loss)
$
(4,902)
$
1,421
$
(13,505)
$
785
Earnings (Loss) per share:
Basic
$
(0.43)
$
0.15
$
(1.13)
$
0.11
Diluted
$
(0.43)
$
0.14
$
(1.13)
$
0.10
Weighted-average shares outstanding:
Basic
11,682
11,100
11,593
11,037
Diluted
11,682
11,679
11,593
11,670
WILLDAN GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
July 3,
June 28,
2020
2019
Cash flows from operating activities:
Net income (loss)
$
(13,139)
$
1,223
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
9,985
5,712
Deferred income taxes, net
(3,726)
(167)
(Gain) loss on sale/disposal of
equipment
(16)
(8)
Provision for doubtful accounts
968
202
Stock-based compensation
8,825
4,041
Accretion and fair value adjustments of
contingent consideration
1,630
(627)
Changes in operating assets and
liabilities, net of effects from business acquisitions:
Accounts receivable
13,535
15,998
Contract assets
35,862
(8,148)
Other receivables
897
(1,719)
Prepaid expenses and other current
assets
1,140
877
Other assets
2,496
(615)
Accounts payable
1,070
(6,615)
Accrued liabilities
(31,987)
2,036
Contract liabilities
1,594
65
Right-of-use assets
97
240
Net cash provided by operating
activities
29,231
12,495
Cash flows from investing activities:
Purchase of equipment and leasehold
improvements
(2,946)
(3,619)
Proceeds from sale of equipment
17
44
Cash paid for acquisitions, net of cash
acquired
—
(21,800)
Net cash used in investing activities
(2,929)
(25,375)
Cash flows from financing activities:
Payments on contingent consideration
(1,433)
(1,381)
Payments on notes payable
(163)
(929)
Payments on debt issuance costs
—
(577)
Borrowings under term loan facility and
line of credit
24,000
100,000
Repayments under term loan facility and
line of credit
(35,500)
(70,000)
Principal payments on finance leases
(296)
(300)
Proceeds from stock option exercise
591
523
Proceeds from sales of common stock under
employee stock purchase plan
1,073
749
Shares used to pay taxes on stock
grants
(2,867)
(2,862)
Restricted Stock Award and Units
1
—
Net cash (used in) provided by financing
activities
(14,594)
25,223
Net increase (decrease) in cash and cash
equivalents
11,708
12,343
Cash and cash equivalents at beginning of
period
5,452
15,259
Cash and cash equivalents at end of
period
$
17,160
$
27,602
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest
$
2,797
$
2,156
Income taxes
262
2,040
Supplemental disclosures of noncash
investing and financing activities:
Equipment acquired under finance
leases
318
413
Willdan Group, Inc. and
Subsidiaries
Reconciliation of GAAP Revenue
to Net Revenue
(in thousands)
(Non-GAAP Measure)
Three Months Ended
Six Months Ended
July 3,
June 28,
July 3,
June 28,
2020
2019
2020
2019
Consolidated
Contract revenue
$
83,549
$
104,396
$
189,575
$
196,189
Subcontractor services and other direct
costs
40,355
57,623
96,775
108,571
Net Revenue
$
43,194
$
46,773
$
92,800
$
87,618
Energy segment
Contract revenue
$
66,708
$
85,283
$
154,506
$
159,975
Subcontractor services and other direct
costs
37,611
52,873
90,903
100,653
Net Revenue
$
29,097
$
32,410
$
63,604
$
59,322
Engineering and Consulting
segment
Contract revenue
$
16,841
$
19,113
$
35,069
$
36,214
Subcontractor services and other direct
costs
2,744
4,750
5,872
7,918
Net Revenue
$
14,099
$
14,363
$
29,197
$
28,296
Willdan Group, Inc. and
Subsidiaries
Reconciliation of GAAP Net
Income to Adjusted EBITDA
(in thousands)
(Non-GAAP Measure)
Three Months Ended
Six Months Ended
July 3,
June 28,
July 3,
June 28,
2020
2019
2020
2019
Net income (loss)
$
(4,985)
$
1,640
$
(13,139)
$
1,223
Interest expense
1,257
1,221
2,770
2,342
Income tax benefit
(90)
(70)
(1,695)
(997)
Stock-based compensation
4,230
2,224
8,825
4,041
Interest accretion (1)
1,296
(737)
1,630
(627)
Depreciation and amortization
5,466
2,973
9,985
5,712
Transaction costs (2)
30
342
148
560
(Gain) Loss on sale of equipment
—
(8)
(16)
(8)
Adjusted EBITDA
$
7,204
$
7,585
$
8,508
$
12,246
(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
Six Months Ended
July 3,
June 28,
July 3,
June 28,
2020
2019
2020
2019
Net income (loss)
$
(4,985)
$
1,640
$
(13,139)
$
1,223
Adjustment for stock-based
compensation
4,230
2,224
8,825
4,041
Tax effect of stock-based compensation
(719)
(614)
(1,500)
(1,117)
Adjustment for intangible amortization
4,206
2,140
7,463
4,076
Tax effect of intangible amortization
(715)
(591)
(1,269)
(1,126)
Adjustment for transaction costs
30
342
148
560
Tax effect of transaction costs
(5)
(94)
(25)
(155)
Adjusted Net Income (Loss)
$
2,042
$
5,047
$
503
$
7,502
Diluted weighted-average shares
outstanding
11,682
11,679
11,593
11,670
Diluted earnings per share
$
(0.43)
$
0.14
$
(1.13)
$
0.10
Impact of adjustment:
Stock-based compensation per share
0.36
0.19
0.76
0.35
Tax effect of stock-based compensation per
share
(0.06)
(0.05)
(0.13)
(0.10)
Intangible amortization per share
0.36
0.18
0.64
0.35
Tax effect of intangible amortization per
share
(0.06)
(0.05)
(0.11)
(0.10)
Transaction costs per share
0.00
0.03
0.01
0.05
Tax effect of transaction costs per
share
—
(0.01)
—
(0.01)
Adjusted Diluted EPS
$
0.17
$
0.43
$
0.04
$
0.64
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806006069/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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