PITTSBURGH, April 25, 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 first quarter ended
March 31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20100507/NE01385LOGO
)
First Quarter Results:
Revenues for the first quarter were $24.5
million, which represented a 23% increase over the
corresponding quarter last year and a 2.5% improvement over fourth
quarter 2011 results. Gross profit in the first quarter
totaled $4.5 million compared to
$3.8 million in the first quarter of
2011. Consolidated net income for the first quarter 2012 totaled
$352,000, or $0.10 per diluted share, compared to $37,000, or $0.01
per diluted share, in the same period last year. Both the
first quarter of 2012 and 2011 included severance expense equal to
$0.02 per diluted share.
Demand for our IT and healthcare staffing services remained
solid during the first quarter of 2012. Supply-side pricing
pressures are starting to emerge within certain technologies of the
IT business, as resources are commanding higher compensation
levels. Market conditions in healthcare staffing remained largely
positive and we achieved sequential revenue growth for the seventh
consecutive quarter.
Kevin Horner, Mastech's Chief
Executive Officer stated, "While we are pleased with 23% revenue
growth for the quarter, we have to do a better job helping our
client base understand the changes which are happening on the
supply-side of the market. A tightening of industry supply
will cause hardships for clients who are slow to recognize these
industry trends. Additionally, we need to quickly adjust our
pricing model to reflect these market dynamics."
Commenting on the Company's financial position, Jack Cronin, Mastech's Chief Financial Officer,
stated, "Our balance sheet remains strong with cash on hand of
$2.7 million; no outstanding debt;
and access to $14.1 million of
borrowing capacity as of March 31,
2012. During the quarter, we completed a partial tender offer
in which we repurchased approximately 12% of our outstanding common
stock. This $2.5 million
transaction was entirely funded with cash balances on hand."
In conjunction with its first quarter earnings release, Mastech
will host a conference call at 9:00 A.M.
EDT on April 25, 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 May
2, 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, 2011.
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MASTECH
HOLDINGS, INC.
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CONDENSED CONSOLIDATED BALANCE
SHEETS
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(Amounts
in thousands)
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(Unaudited)
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March
31,
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December 31,
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2012
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2011
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ASSETS
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Current
assets:
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Cash and cash
equivalents
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$
2,748
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$
5,755
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Accounts receivable,
net
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13,454
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11,925
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Prepaid and other
current assets
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722
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1,046
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Deferred income
taxes
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153
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177
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Total current assets
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17,077
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18,903
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Equipment,
enterprise software and leasehold improvements, net
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304
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273
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Goodwill
and intangible assets, net
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451
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458
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Deferred
financing costs, net
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67
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74
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Deferred
income taxes
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181
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80
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Total assets
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$
18,080
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$
19,788
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LIABILITIES AND SHAREHOLDERS'
EQUITY
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Current
liabilities:
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Accounts
payable
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$
2,234
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$
2,309
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Accrued payroll and
related costs
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4,542
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4,002
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Deferred revenue and
other liabilities
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354
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430
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Total current liabilities
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7,130
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6,741
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Total liabilities
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7,130
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6,741
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Shareholders' equity:
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Common stock, par
value $0.01 per share
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37
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37
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Additional paid-in
capital
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10,156
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10,114
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Retained
earnings
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3,814
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3,462
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Treasury stock, at
cost
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(3,057)
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(566)
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Total shareholders' equity
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10,950
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13,047
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Total liabilities and shareholders' equity
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$
18,080
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$
19,788
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MASTECH
HOLDINGS, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
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(Amounts
in thousands, except per share data)
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(Unaudited)
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Three
Months ended March 31,
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2012
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2011
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Revenues
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$
24,454
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$
19,901
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Cost of
revenues
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19,994
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16,057
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Gross
profit
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4,460
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3,844
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Selling,
general and administrative expenses
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3,864
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3,778
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Income
from operations
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596
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66
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Other
income/(expense), net
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(23)
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(7)
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Income
before income taxes
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573
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59
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Income tax
expense
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221
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22
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Net
income
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$
352
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$
37
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Earnings per share:
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Basic
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$
0.10
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$
0.01
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Diluted
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$
0.10
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$
0.01
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Weighted average common shares
outstanding:
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Basic
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3,481
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3,690
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Diluted
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3,582
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3,799
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SOURCE Mastech Holdings, Inc.