PITTSBURGH, Feb. 1, 2012 /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, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20100507/NE01385LOGO )
Fourth Quarter Results:
Revenues for the quarter were $23.9
million and represented an 18% increase over the
corresponding quarter last year and a 2% improvement over third
quarter 2011 results. Gross margins in the 2011 quarter
totaled 19.3% compared to 19.7% for the 2010 quarter.
Consolidated net income for the fourth quarter 2011 totaled
$253,000 or $0.07 per diluted share, compared to $304,000 or $0.08
per diluted share, in the same period last year. The 2011
fourth quarter results included severance expense equal to
$0.05 per diluted share, related to
the elimination of several executive positions during the
quarter.
Demand for our IT staffing services remained solid during the
fourth quarter when considering the normal year-end industry
trends. Market conditions in healthcare staffing remained largely
positive and we were able to achieve sequential revenue growth for
the sixth consecutive quarter.
Full Year Results:
Revenue for the year totaled $89.4
million, or 24% higher than 2010 revenues of $71.8 million. Gross margins for the full
year 2011 were 19.6% which was in-line with last year's gross
margin performance. Consolidated net income for 2011 totaled
$1.1 million or $0.30 per diluted share, compared to $663,000 or $0.18
per diluted share in 2010.
Kevin Horner, Mastech's Chief
Executive Officer, stated, "We are pleased with the results that we
delivered during the quarter and for the full year 2011. For
the year, we organically grew our revenues and consultant-base by
over 20%, increased profitability by approximately 67% and
rationalized our management cost structure to better position us to
continue to outperform our industry peers."
Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated,
"Our balance sheet remains strong. We enter 2012 positioned with
the financial flexibility to support our growth objectives and to
capitalize on inorganic value creation opportunities. At
December 31, 2011, cash on hand
totaled $5.8 million; we had no
outstanding debt; and have access to a credit facility with a
maximum borrowing capacity of $19
million."
In conjunction with its fourth quarter earnings release, Mastech
will host a conference call at 9:00 A.M.
EST on February 1, 2012 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 8, 2012.
About Mastech Holdings, Inc.:
Leveraging the power of 25 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)
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,755
|
|
$
6,334
|
|
Accounts
receivable, net
|
|
11,925
|
|
9,721
|
|
Prepaid and other
current assets
|
|
1,046
|
|
1,395
|
|
Deferred income
taxes
|
|
177
|
|
177
|
|
Total current assets
|
|
18,903
|
|
17,627
|
|
|
|
|
|
|
|
Equipment, enterprise software
and leasehold improvements, net
|
|
273
|
|
185
|
|
|
|
|
|
|
|
Goodwill and intangible assets,
net
|
|
458
|
|
498
|
|
|
|
|
|
|
|
Investment in unconsolidated
affiliate
|
|
-
|
|
5
|
|
|
|
|
|
|
|
Deferred financing costs,
net
|
|
74
|
|
-
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
80
|
|
82
|
|
|
|
|
|
|
|
Total assets
|
|
$
19,788
|
|
$
18,397
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
2,309
|
|
$
2,695
|
|
Accrued payroll
and related costs
|
|
4,002
|
|
3,024
|
|
Deferred revenue
and other liabilities
|
|
430
|
|
330
|
|
Total current liabilities
|
|
6,741
|
|
6,049
|
|
|
|
|
|
|
|
Total liabilities
|
|
6,741
|
|
6,049
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Common stock, par
value $0.01 per share
|
|
37
|
|
37
|
|
Additional paid-in
capital
|
|
10,114
|
|
9,962
|
|
Retained
earnings
|
|
3,462
|
|
2,349
|
|
Treasury stock, at
cost
|
|
(566)
|
|
-
|
|
Total shareholders' equity
|
|
13,047
|
|
12,348
|
|
Total liabilities and shareholders' equity
|
|
$
19,788
|
|
$
18,397
|
|
|
|
|
|
|
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,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 23,857
|
|
$ 20,282
|
|
$ 89,362
|
|
$ 71,788
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
19,247
|
|
16,290
|
|
71,821
|
|
57,718
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
4,610
|
|
3,992
|
|
17,541
|
|
14,070
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
4,164
|
|
3,559
|
|
15,680
|
|
13,006
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
446
|
|
433
|
|
1,861
|
|
1,064
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense),
net
|
(37)
|
|
(8)
|
|
(69)
|
|
(26)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
409
|
|
425
|
|
1,792
|
|
1,038
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
156
|
|
121
|
|
679
|
|
375
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
253
|
|
$
304
|
|
$ 1,113
|
|
$
663
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.07
|
|
$ 0.08
|
|
$ 0.30
|
|
$ 0.18
|
|
Diluted
|
$ 0.07
|
|
$ 0.08
|
|
$ 0.30
|
|
$ 0.18
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
3,594
|
|
3,691
|
|
3,653
|
|
3,673
|
|
Diluted
|
3,651
|
|
3,758
|
|
3,756
|
|
3,746
|
|
|
|
|
|
|
|
|
|
SOURCE Mastech Holdings, Inc.