PITTSBURGH, April 27, 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 first quarter ended
March 31, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20100507/NE01385LOGO )
First Quarter Results:
Revenues for the quarter were $19.9
million and represented a 27% increase over the
corresponding quarter last year. Gross profit for the first
quarter of 2011 totaled $3.8 million
or approximately $0.8 million above
gross profit for the first quarter of 2010. Consolidated net income
for the first quarter of 2011 totaled $37,000 or $0.01
per diluted share, compared to $63,000 or $0.02
per diluted share, in the same period last year.
Demand for our IT staffing services remained solid during the
first quarter of 2011 as we increased our billable consultant
headcount by 3.5 percent. Market conditions in healthcare
continue to show some signs of improvement and we were able to
achieve sequential revenue growth for the third consecutive
quarter. Investments in selling, general and administrative
expenses during the quarter reduced our net income performance and
included a severance charge.
Thomas Moran, Chief Executive
Officer of Mastech stated, “During the quarter we established IT
branch operations in Chicago,
increased our offshore recruitment staff to support higher activity
flow and new client wins, and adjusted the alignment of our
recruitment reporting structure to improve efficiency and
accountability. I’m confident that these first quarter
investments will benefit the balance of 2011 as we capitalize more
effectively on market opportunities.”
Commenting on the Company’s financial position, Jack Cronin, Chief Financial Officer, stated,
“Our balance sheet remains strong with $4.8
million of cash on hand, no outstanding bank debt and access
to $8.7 million of credit under our
existing revolving credit facility. During the quarter our
cash balances declined $1.5 million,
as operating working capital levels increased in support of our
revenue growth and a higher accounts receivable
days-sales-outstanding (“DSO”) measurement. The DSO increase
largely reflects short-term payment pattern variances at several
major clients.”
In conjunction with its first quarter earnings release, Mastech
will host a conference call at 9:00 A. M. EDT on April 27, 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 May 4, 2011.
About Mastech Holdings, Inc.:
Leveraging the power of over 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, 2010.
MASTECH
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 4,843
|
|
$
6,334
|
|
Accounts
receivable, net
|
|
11,107
|
|
9,721
|
|
Prepaid and other
current assets
|
|
827
|
|
1,395
|
|
Deferred income
taxes
|
|
210
|
|
177
|
|
Total current assets
|
|
16,987
|
|
17,627
|
|
|
|
|
|
|
|
Equipment, enterprise software
and leasehold improvements, net
|
|
172
|
|
185
|
|
|
|
|
|
|
|
Goodwill and intangible assets,
net
|
|
488
|
|
498
|
|
|
|
|
|
|
|
Investment in unconsolidated
affiliate
|
|
3
|
|
5
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
77
|
|
82
|
|
|
|
|
|
|
|
Total assets
|
|
$ 17,727
|
|
$
18,397
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,621
|
|
$
2,695
|
|
Accrued payroll
and related costs
|
|
3,395
|
|
3,024
|
|
Deferred revenue
and other liabilities
|
|
279
|
|
330
|
|
Total current liabilities
|
|
5,295
|
|
6,049
|
|
|
|
|
|
|
|
Total liabilities
|
|
5,295
|
|
6,049
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Common stock, par
value $0.01 per share
|
|
37
|
|
37
|
|
Additional paid-in
capital
|
|
10,026
|
|
9,962
|
|
Retained
earnings
|
|
2,386
|
|
2,349
|
|
Treasury stock, at
cost
|
|
(17)
|
|
-
|
|
Total shareholders' equity
|
|
12,432
|
|
12,348
|
|
Total liabilities and shareholders' equity
|
|
$ 17,727
|
|
$
18,397
|
|
|
|
|
|
|
MASTECH
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in
thousands, except per share data)
|
|
(unaudited)
|
|
|
Three Months
ended March 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Revenues
|
$ 19,901
|
|
$ 15,717
|
|
|
|
|
|
|
Cost of revenues
|
16,057
|
|
12,642
|
|
|
|
|
|
|
Gross profit
|
3,844
|
|
3,075
|
|
|
|
|
|
|
Selling, general and
administrative
|
3,778
|
|
2,962
|
|
|
|
|
|
|
Income from
operations
|
66
|
|
113
|
|
|
|
|
|
|
Other income/(expense),
net
|
(7)
|
|
(6)
|
|
|
|
|
|
|
Income before income
taxes
|
59
|
|
107
|
|
|
|
|
|
|
Income tax expense
|
22
|
|
44
|
|
|
|
|
|
|
Net income
|
$
37
|
|
$
63
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic
|
$ 0.01
|
|
$ 0.02
|
|
Diluted
|
$ 0.01
|
|
$ 0.02
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
Basic
|
3,690
|
|
3,634
|
|
Diluted
|
3,799
|
|
3,759
|
|
|
|
|
|
SOURCE Mastech Holdings, Inc.