Mastech Holdings, Inc. Reports 2008 Fourth Quarter and Year-End Results
(Logo: http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b )
Fourth Quarter Results
Revenues for the quarter were
Activity levels in the fourth quarter of 2008 slowed significantly. As a
result, the Company's billable consultant-base declined by approximately 11%.
Much of this headcount decline occurred late in the quarter, and accordingly,
the impact of the reduction is not fully reflected in the Company's fourth
quarter operating results. Additionally, operating expenses in the fourth
quarter of 2008 included
Full Year Results
Revenues for 2008 were
Steven Shangold, Chief Executive Officer of
Commenting on the Company's financial position,
In conjunction with its fourth quarter earnings release,
About
Leveraging the power of 20 years of IT experience,
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, segment performance, 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.
MASTECH HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(unaudited)
December 31, December 31,
2008 2007
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ASSETS
Current assets:
Cash and cash equivalents $4,361 $1,524
Accounts receivable, net 9,240 11,444
Prepaid and other current assets 376 194
Deferred income taxes 253 289
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Total current assets 14,230 13,451
Investment in unconsolidated affiliate 41 62
Land, building, equipment and leasehold
improvements, net 235 425
Deferred income taxes 191 327
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Total assets $14,697 $14,265
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,454 $2,873
Accrued payroll and related costs 2,700 3,465
Deferred revenue and other 140 91
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Total current liabilities 5,294 6,429
Total liabilities 5,294 6,429
Shareholders' equity:
iGATE's net investment - 7,836
Common stock, par value $0.01
per share 36 -
Additional paid-in capital 9,078 -
Retained earnings 289 -
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Total shareholders' equity 9,403 7,836
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Total liabilities and
shareholders' equity $14,697 $14,265
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MASTECH HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(unaudited)
Three Months Years ended
ended December 31, December 31,
2008 2007 2008 2007
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Revenues $23,086 $25,760 $96,650 $104,693
Cost of revenues 18,980 20,805 78,328 82,618
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Gross profit 4,106 4,955 18,322 22,075
Selling, general and
administrative 3,528 3,817 13,846 15,696
Depreciation and amortization 80 78 314 320
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Income from operations 498 1,060 4,162 6,059
Other income/(expense), net (7) 19 (2) 82
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Income before income taxes 491 1,079 4,160 6,141
Income tax expense 202 (66) 638 701
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Net income $289 $1,145 $3,522 $5,440
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Earnings per share:
Basic $0.08 $0.32 $0.98 $1.51
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Diluted $0.08 $0.32 $0.98 $1.51
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Weighted average common shares
outstanding:
Basic 3,607 3,607 3,607 3,607
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Diluted 3,622 3,607 3,611 3,607
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SOURCE
/CONTACT:
/Web Site: http://www.mastech.com /