PITTSBURGH, July 25, 2012 /PRNewswire/ -- Mastech Holdings,
Inc. (NYSE MKT: MHH), a national provider of Information Technology
and Specialized Healthcare staffing services, announced today its
financial results for the second quarter ended June 30, 2012.
(Logo: http://photos.prnewswire.com/prnh/20100507/NE01385LOGO
)
Second Quarter Results:
Revenues for the second quarter were $25.3 million, which represented a 14% increase
over the corresponding quarter last year and approximately a 4%
improvement over first quarter 2012 results. Gross profit in
the second quarter 2012 totaled $4.8
million compared to $4.4
million in the second quarter of 2011. Consolidated net
income for the second quarter 2012 totaled $458,000, or $0.14
per diluted share, compared to $382,000, or $0.10
per diluted share, in the same period last year.
Demand for our staffing services remained solid during the
second quarter as we were able to grow our IT billable
consultant-base by 5% and achieve sequential revenue growth for the
eighth consecutive quarter in our healthcare staffing business.
Overall gross margins in the second quarter showed a marked
improvement over the previous quarter, but continued to be impacted
negatively by emerging supply-side pricing pressures in the
marketplace.
Kevin Horner, Mastech's Chief
Executive Officer stated, "During the quarter we maintained
top-line revenue growth while aggressively growing bottom-line
earnings per share. Internally, we are committed to and
focused on strengthening our recruitment capabilities and
effectiveness, aimed at enhancing the value proposition that we
provide to our clients. As the supply of qualified IT and
healthcare professionals continues to tighten, we believe
organizations with a capable, competent recruiting and delivery
engine will emerge as industry leaders."
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
$1.7 million; no outstanding debt;
and access to $15.3 million of
borrowing capacity. During the first six months of 2012, our
cash balances declined by $4.1
million reflecting $2.4
million of investment in operating working capital, in
support of our revenue growth, and $2.5
million in common stock repurchases.
In conjunction with its second quarter earnings release, Mastech
will host a conference call at 9:00 A. M. EDT on July 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 August 1, 2012.
About Mastech Holdings, Inc.:
Leveraging the power of 25 years of
IT experience, Mastech (NYSE MKT:
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.
|
MASTECH
HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(Amounts
in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,687
|
|
$
5,755
|
|
Accounts receivable,
net
|
|
14,054
|
|
11,925
|
|
Prepaid and other current
assets
|
|
1,043
|
|
1,046
|
|
Deferred income
taxes
|
|
88
|
|
177
|
|
Total current assets
|
|
16,872
|
|
18,903
|
|
|
|
|
|
|
|
Equipment,
enterprise software and leasehold improvements, net
|
|
295
|
|
273
|
|
|
|
|
|
|
|
Goodwill
and intangible assets, net
|
|
443
|
|
458
|
|
|
|
|
|
|
|
Deferred financing costs, net
|
|
60
|
|
74
|
|
|
|
|
|
|
|
Deferred
income taxes
|
|
177
|
|
80
|
|
|
|
|
|
|
|
Total assets
|
|
$
17,847
|
|
$
19,788
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
1,995
|
|
$
2,309
|
|
Accrued payroll and related
costs
|
|
4,000
|
|
4,002
|
|
Deferred revenue and other
liabilities
|
|
344
|
|
430
|
|
Total current liabilities
|
|
6,339
|
|
6,741
|
|
|
|
|
|
|
|
Total liabilities
|
|
6,339
|
|
6,741
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Common stock, par value
$0.01 per share
|
|
37
|
|
37
|
|
Additional paid-in
capital
|
|
10,254
|
|
10,114
|
|
Retained earnings
|
|
4,272
|
|
3,462
|
|
Accumulated other
comprehensive income
|
|
2
|
|
-
|
|
Treasury stock, at
cost
|
|
(3,057)
|
|
(566)
|
|
Total shareholders' equity
|
|
11,508
|
|
13,047
|
|
Total liabilities and shareholders' equity
|
|
$
17,847
|
|
$
19,788
|
|
|
|
|
|
|
|
MASTECH
HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(Amounts
in thousands, except per share data)
|
|
(Unaudited)
|
|
|
Three
Months ended June 30,
|
|
Six
Months ended June 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
25,312
|
|
$
22,115
|
|
$
49,766
|
|
$
42,016
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
20,483
|
|
17,677
|
|
40,477
|
|
33,734
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
4,829
|
|
4,438
|
|
9,289
|
|
8,282
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
4,058
|
|
3,817
|
|
7,922
|
|
7,595
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
771
|
|
621
|
|
1,367
|
|
687
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense), net
|
(33)
|
|
(7)
|
|
(56)
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
738
|
|
614
|
|
1,311
|
|
673
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
280
|
|
232
|
|
501
|
|
254
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
458
|
|
$
382
|
|
$
810
|
|
$
419
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.14
|
|
$
0.10
|
|
$
0.24
|
|
$
0.11
|
|
Diluted
|
$
0.14
|
|
$
0.10
|
|
$
0.24
|
|
$
0.11
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
3,158
|
|
3,673
|
|
3,320
|
|
3,682
|
|
Diluted
|
3,269
|
|
3,755
|
|
3,427
|
|
3,777
|
|
|
|
|
|
|
|
|
|
SOURCE Mastech Holdings, Inc.