PITTSBURGH, Feb. 2, 2011 /PRNewswire/ -- Mastech Holdings,
Inc. (NYSE Amex: MHH), a national provider of Information
Technology and Specialized Healthcare staffing services, announced
today its financial results for the fourth quarter and full year
ended December 31, 2010.
(Logo:
http://photos.prnewswire.com/prnh/20100507/NE01385LOGO )
Fourth Quarter Results:
Revenues for the quarter were $20.3
million and represented a 30.2% increase over the
corresponding quarter last year and a 7.5% sequential improvement
over third quarter 2010 results. Gross margins in the 2010
quarter totaled 19.7% compared to 19.2% for the 2009 quarter.
Consolidated net income for the fourth quarter 2010 totaled
$304,000 or $0.08 per diluted share, compared to $219,000, or $0.06
per diluted share, in the same period last year. These
results were $0.03 better than third
quarter 2010.
Demand for our IT staffing services remained solid during the
fourth quarter when considering the normal year-end industry
trends. Market conditions in healthcare continue to show some
signs of stabilization and we were able to achieve sequential
revenue growth for the second consecutive quarter.
Full Year Results:
Revenue for the year totaled $71.8
million, compared to $71.1
million in 2009. Gross margins for the full year 2010
were 19.6% compared to 18.9% in 2009. Consolidated net income
for 2010 totaled $663,000 or
$0.18 per diluted share, compared to
$1.4 million or $0.38 per diluted share in 2009.
During 2010 we grew our billable IT consultant-base by over 20%,
increased our gross margins and achieved year-over-year revenue
growth for the first time since 2006. Additionally, we
expanded our service offerings, made critical investments in our
sales and recruitment organizations and enhanced our operational
processes and accountability metrics.
Thomas Moran, Chief Executive
Officer of Mastech, stated, "We are pleased with the results that
we delivered for the quarter and the progress that we made during
2010 to strengthen our organization for future growth. During
the quarter, we again grew our business in terms of revenues and
earnings per share on both a year-over-year and sequential
basis."
Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated,
"Our balance sheet remains strong with $6.3
million of cash on hand, no outstanding debt and access to
$8.1 million of credit under our
existing revolving credit facility. We believe that we are in
an excellent financial position to capitalize on value creation
opportunities, as evidenced by our recently announced share buyback
program."
In conjunction with its fourth quarter earnings release, Mastech
will host a conference call at 9:00 A.M.
EST on February 2, 2011 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 February 9, 2011.
About Mastech Holdings, Inc.:
Leveraging the power of 20 years of IT experience, Mastech
(NYSE Amex: 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, 2009.
MASTECH
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousands)
(unaudited)
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
6,334
|
|
$
7,113
|
|
Accounts
receivable, net
|
9,721
|
|
7,232
|
|
Prepaid and other
current assets
|
1,395
|
|
401
|
|
Deferred income
taxes
|
177
|
|
312
|
|
Total current assets
|
17,627
|
|
15,058
|
|
|
|
|
|
|
Equipment, enterprise software
and leasehold improvements, net
|
185
|
|
160
|
|
|
|
|
|
|
Goodwill and intangible assets,
net
|
498
|
|
-
|
|
|
|
|
|
|
Investment in unconsolidated
affiliate
|
5
|
|
5
|
|
|
|
|
|
|
Deferred income taxes
|
82
|
|
87
|
|
|
|
|
|
|
Total assets
|
$
18,397
|
|
$
15,310
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
2,695
|
|
$
1,653
|
|
Accrued payroll
and related costs
|
3,023
|
|
2,179
|
|
Deferred revenue
and other liabilities
|
331
|
|
226
|
|
Total current liabilities
|
6,049
|
|
4,058
|
|
|
|
|
|
|
Total liabilities
|
6,049
|
|
4,058
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Common stock, par
value $0.01 per share
|
37
|
|
36
|
|
Additional paid-in
capital
|
9,962
|
|
9,530
|
|
Retained
earnings
|
2,349
|
|
1,686
|
|
Total shareholders' equity
|
12,348
|
|
11,252
|
|
Total liabilities and shareholders' equity
|
$
18,397
|
|
$
15,310
|
|
|
|
|
|
MASTECH
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in
thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
Three Months
ended December 31,
|
|
Years ended
December 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 20,282
|
|
$ 15,580
|
|
$ 71,788
|
|
$ 71,062
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
16,290
|
|
12,582
|
|
57,718
|
|
57,635
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
3,992
|
|
2,998
|
|
14,070
|
|
13,427
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
3,559
|
|
2,690
|
|
13,006
|
|
11,106
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
433
|
|
308
|
|
1,064
|
|
2,321
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense),
net
|
(8)
|
|
(11)
|
|
(26)
|
|
(49)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
425
|
|
297
|
|
1,038
|
|
2,272
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
121
|
|
78
|
|
375
|
|
875
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
304
|
|
$
219
|
|
$
663
|
|
$ 1,397
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.08
|
|
$ 0.06
|
|
$ 0.18
|
|
$ 0.39
|
|
Diluted
|
$ 0.08
|
|
$ 0.06
|
|
$ 0.18
|
|
$ 0.38
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
3,691
|
|
3,613
|
|
3,673
|
|
3,608
|
|
Diluted
|
3,758
|
|
3,763
|
|
3,746
|
|
3,706
|
|
|
|
|
|
|
|
|
|
SOURCE Mastech Holdings, Inc.