PITTSBURGH, Oct. 19, 2011 /PRNewswire/ -- Mastech Holdings,
Inc. (NYSE Amex: MHH – News), a national provider of Information
Technology and Specialized Healthcare staffing services, announced
today its financial results for the third quarter ended
September 30, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20100507/NE01385LOGO )
Third Quarter Results:
Revenues for the quarter were $23.5
million which represented a 24% increase over the
corresponding quarter last year. Gross profit in the 2011
quarter totaled $4.6 million or
approximately $1.0 million greater
than those achieved during the third quarter of 2010. Gross margins
of 19.8% were better than the 19.3% generated last year.
Consolidated net income for the third quarter 2011 totaled
$441,000 or $0.12 per diluted share, compared to $187,000 or $0.05
per diluted share, in the same period last year.
Despite a significant amount of economic uncertainty during the
third quarter, our business activity levels remained stable.
Demand for our IT staffing services was higher than the
previous quarter and our healthcare staffing business continued to
achieve sequential revenue growth for the fifth consecutive
quarter.
Kevin Horner, Chief Executive
Officer of Mastech stated, "I'm pleased to report that during the
quarter we grew total revenues by 6.2% sequentially and delivered
an earnings per share performance that was $0.02 per diluted share better than second
quarter 2011's results. This solid performance reflects
operating leverage opportunities in our cost structure and
improvements in operating efficiencies, as selling, general and
administrative expenses declined to 16.7% of revenues."
Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated,
"Our balance sheet remains strong with $5.6
million of cash on hand and no outstanding debt. During the
quarter we amended our credit facility with PNC Bank which was set
to expire on October 15, 2011.
The amended facility increases our maximum borrowing capacity
to $19 million and extends the term
of the agreement through August 31,
2014."
In conjunction with its third quarter earnings release, Mastech
will host a conference call at 9:00 A. M. EDT on October 19, 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 October 26,
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 STATEMENTS OF OPERATIONS
|
|
|
(Amounts in
thousands, except per share data)
|
|
|
(Unaudited)
|
|
|
|
Three Months
ended September 30,
|
|
Nine Months
ended September 30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
23,489
|
|
$
18,869
|
|
$
65,505
|
|
$
51,506
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
18,840
|
|
15,230
|
|
52,574
|
|
41,428
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
4,649
|
|
3,639
|
|
12,931
|
|
10,078
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
3,921
|
|
3,310
|
|
11,516
|
|
9,447
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
728
|
|
329
|
|
1,415
|
|
631
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense),
net
|
(18)
|
|
(4)
|
|
(32)
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
710
|
|
325
|
|
1,383
|
|
613
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
269
|
|
138
|
|
523
|
|
254
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
441
|
|
$
187
|
|
$
860
|
|
$
359
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.12
|
|
$
0.05
|
|
$
0.23
|
|
$
0.10
|
|
|
Diluted
|
$
0.12
|
|
$
0.05
|
|
$
0.23
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
3,657
|
|
3,691
|
|
3,673
|
|
3,667
|
|
|
Diluted
|
3,755
|
|
3,752
|
|
3,786
|
|
3,742
|
|
|
|
|
|
|
|
|
|
|
|
MASTECH
HOLDINGS, INC.
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
(Amounts in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,614
|
|
$
6,334
|
|
|
Accounts
receivable, net
|
|
12,374
|
|
9,721
|
|
|
Prepaid and other
current assets
|
|
1,233
|
|
1,395
|
|
|
Deferred income
taxes
|
|
93
|
|
177
|
|
|
Total current assets
|
|
19,314
|
|
17,627
|
|
|
|
|
|
|
|
|
|
Equipment, enterprise software
and leasehold improvements, net
|
|
185
|
|
185
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible assets,
net
|
|
468
|
|
498
|
|
|
|
|
|
|
|
|
|
Investment in unconsolidated
affiliate
|
|
-
|
|
5
|
|
|
|
|
|
|
|
|
|
Deferred financing costs,
net
|
|
81
|
|
-
|
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
87
|
|
82
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
20,135
|
|
$
18,397
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
2,013
|
|
$
2,695
|
|
|
Accrued payroll
and related costs
|
|
4,748
|
|
3,024
|
|
|
Deferred revenue
and other liabilities
|
|
361
|
|
330
|
|
|
Total current liabilities
|
|
7,122
|
|
6,049
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
7,122
|
|
6,049
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
Common stock, par
value $0.01 per share
|
|
37
|
|
37
|
|
|
Additional paid-in
capital
|
|
10,086
|
|
9,962
|
|
|
Retained
earnings
|
|
3,209
|
|
2,349
|
|
|
Treasury stock, at
cost
|
|
(319)
|
|
-
|
|
|
Total shareholders' equity
|
|
13,013
|
|
12,348
|
|
|
Total liabilities and shareholders' equity
|
|
$
20,135
|
|
$
18,397
|
|
|
|
|
|
|
|
SOURCE Mastech Holdings, Inc.