Mastech Holdings, Inc. Reports Fourth Quarter and Full Year 2009 Results
February 03 2010 - 7:30AM
PR Newswire (US)
PITTSBURGH, Feb. 3 /PRNewswire-FirstCall/ -- Mastech Holdings, Inc.
(NYSE Amex: MHH), a national provider of Information Technology
staffing services, announced today its financial results for the
fourth quarter and full year ended December 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b ) Fourth
Quarter Results Revenues for the quarter were $15.6 million,
compared to $23.1 million reported in the corresponding quarter
last year. Gross margins in the 2009 quarter increased to 19.2%
compared to 17.8% for the 2008 quarter. Consolidated net income for
the fourth quarter 2009 totaled $219,000 or $0.06 per diluted
share, compared to $289,000, or $0.08 per diluted share, in the
same period last year. Full Year Results Revenues for the year
totaled $71.1 million, compared to $96.6 million in 2008. Gross
margins for the full year 2009 were approximately 19%, which is in
line with last year's performance. Consolidated net income for 2009
totaled $1.4 million, or $0.38 per diluted share, compared to $3.5
million, or $0.98 per diluted share in 2008. The Company's results
in 2008 included certain income tax benefits derived from the
Company's participation in its former parent's consolidated U.S.
income tax return, which are not available to the Company as a
stand alone organization. The impact of such tax benefits in 2008
on consolidated net income totaled $1.0 million, or $0.27 per
diluted share. Thomas Moran, Chief Executive Officer of Mastech
stated, "As we enter 2010, we are encouraged by signs of improving
market conditions within most staffing segments. We're also pleased
with the progress made to strengthen our business model and enhance
our ability to capitalize on improving economic conditions. During
the quarter, we invested in our sales and recruiting organizations;
took steps to divest of non-performing assets; and instituted
accountability and performance metrics throughout our entire
organization. I'm confident that these building blocks will have a
positive impact on our operating results during 2010." Commenting
on the Company's financial position, Jack Cronin, Chief Financial
Officer, stated, "Despite the challenging economic conditions faced
in 2009, our financial position remains strong. During the year we
increased our cash balances by $2.7 million, to $7.1 million at
year-end 2009. Our tangible net worth also increased during the
year to $11.3 million from $9.4 million at December 31, 2008. We
continue to have no long-term debt outstanding and access to
approximately $6 million of credit under our existing loan
facility." In conjunction with its fourth quarter earnings release,
Mastech will host a conference call at 9:00 A. M. EST on February
3, 2010 to discuss these results and to answer questions. A live
webcast of this conference call will be available on the company's
website, http://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 10, 2010.
About Mastech Holdings, Inc.: Leveraging the power of 20 years of
IT experience, Mastech (NYSE Amex: MHH) provides Information
Technology Staffing services in the disciplines which drive today's
business operations. More information about Mastech can be found at
Mastech's website: http://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, 2008.
MASTECH HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands) (unaudited) December 31, December 31, 2009
2008 ---- ---- ASSETS Current assets: Cash and cash equivalents
$7,113 $4,361 Accounts receivable, net 7,232 9,240 Prepaid and
other current assets 401 376 Deferred income taxes 312 253 --- ---
Total current assets 15,058 14,230 Investment in unconsolidated
affiliate 5 41 Equipment, enterprise software and leasehold
improvements, net 160 235 Deferred income taxes 87 191 -- --- Total
assets $15,310 $14,697 ======= ======= LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $1,653
$2,454 Accrued payroll and related costs 2,179 2,555 Deferred
revenue and other 226 285 --- --- Total current liabilities 4,058
5,294 ----- ----- Total liabilities 4,058 5,294 Shareholders'
equity: Common stock, par value $0.01 per share 36 36 Additional
paid-in capital 9,530 9,078 Retained earnings 1,686 289 ----- ---
Total shareholders' equity 11,252 9,403 ------ ----- Total
liabilities and shareholders' equity $15,310 $14,697 =======
======= MASTECH HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Amounts in thousands, except per share data)
(unaudited) Three Months Years ended ended December 31, December
31, --------------- ------------- 2009 2008 2009 2008 ---- ----
---- ---- Revenues $15,580 $23,086 $71,062 $96,650 Cost of revenues
12,582 18,980 57,635 78,328 ------ ------ ------ ------ Gross
profit 2,998 4,106 13,427 18,322 Selling, general and
administrative 2,663 3,528 10,883 13,846 Depreciation and
amortization 27 80 223 314 -- -- --- --- Income from operations 308
498 2,321 4,162 Other income/(expense), net (11) (7) (49) (2) ---
-- --- -- Income before income taxes 297 491 2,272 4,160 Income tax
expense 78 202 875 638 -- --- --- --- Net income $219 $289 $1,397
$3,522 ==== ==== ====== ====== Earnings per share: Basic $0.06
$0.08 $0.39 $0.98 ===== ===== ===== ===== Diluted $0.06 $0.08 $0.38
$0.98 ===== ===== ===== ===== Weighted average common shares
outstanding: Basic 3,613 3,607 3,608 3,607 ===== ===== ===== =====
Diluted 3,763 3,622 3,706 3,611 ===== ===== ===== =====
http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b
http://photoarchive.ap.org/ DATASOURCE: Mastech Holdings, Inc.
CONTACT: Donna Mascia, Manager, Investor Relations of Mastech
Holdings, Inc., +1-888-330-5497 Web Site: http://www.mastech.com/
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