Mastech Holdings, Inc. Reports 2009 First Quarter Results
(Logo: http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b )
Revenues for the quarter were
Business activity during the first quarter of 2009 remained at low levels. As a result, billable IT consultant headcount declined by approximately 4% during the period. Additionally, the completion of a major assignment in brokerage operations in late-March resulted in a 7% reduction to total billable consultant headcount. The impact of this project completion and related reduction in revenues is not fully reflected in the Company's first quarter operating results, as it occurred late in the quarter.
Sunil Wadhwani, Interim Chief Executive Officer of
Commenting on the Company's financial position,
In conjunction with its first 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)
March 31, December 31,
2009 2008
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ASSETS
Current assets:
Cash and cash equivalents $5,619 $4,361
Accounts receivable, net 9,586 9,240
Prepaid and other current assets 322 376
Deferred income taxes 306 253
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Total current assets 15,833 14,230
Investment in unconsolidated affiliate 9 41
Equipment, enterprise software and leasehold
improvements, net 234 235
Deferred income taxes 190 191
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Total assets $16,266 $14,697
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,230 $2,454
Accrued payroll and related costs 3,295 2,555
Deferred revenue and other 778 285
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Total current liabilities 6,303 5,294
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Total liabilities 6,303 5,294
Shareholders' equity:
Common stock, par value $0.01 per share 36 36
Additional paid-in capital 9,143 9,078
Retained earnings 784 289
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Total shareholders' equity 9,963 9,403
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Total liabilities and shareholders'
equity $16,266 $14,697
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MASTECH HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(unaudited)
Three Months
ended March 31,
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2009 2008
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Revenues $20,558 $24,974
Cost of revenues 16,715 20,041
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Gross profit 3,843 4,933
Selling, general and administrative 2,900 3,810
Depreciation and amortization 85 81
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Income from operations 858 1,042
Other income/(expense), net (27) 4
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Income before income taxes 831 1,046
Income tax expense 336 74
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Net income $495 $972
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Earnings per share:
Basic $0.14 $0.27
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Diluted $0.14 $0.27
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Weighted average common shares outstanding:
Basic 3,607 3,607
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Diluted 3,632 3,607
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SOURCEMastech Holdings, Inc. -0-05/07/2009 /CONTACT:Donna Mascia , Manager, Investor Relations ofMastech Holdings, Inc. , +1-888-330-5497/ /Photo: http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com/ /Web Site: http://www.mastech.com / (MHH) CO:Mastech Holdings, Inc. ST:Pennsylvania IN: ITE CPR WRK SU: ERN CCA PR -- NE12249 -- 734905/07/2009 07:00 EDT http://www.prnewswire.com