Mastech Holdings, Inc. Reports Fourth Quarter and Full Year 2012 Results
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Fourth Quarter Results:
Revenues for the fourth quarter of 2012 totaled
Demand for our IT staffing services remained solid during the fourth quarter when considering the normal year-end industry trends. Market conditions in the healthcare staffing business remained largely positive and we were able to achieve sequential revenue growth for the tenth consecutive quarter. Overall gross margins in the fourth quarter of 2012 were 19.0%, which were in-line with the previous quarter's performance and slightly below the 19.3% gross margins reported a year earlier.
Full Year Results:
Revenues for the full year 2012 totaled
Commenting on the Company's financial position,
In conjunction with its fourth quarter earnings release,
About
Leveraging the power of 26 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
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
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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December 31, |
December 31, |
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2012 |
2011 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 659 |
$ 5,755 |
|
Accounts receivable, net |
13,791 |
11,925 |
|
Prepaid and other current assets |
788 |
747 |
|
Deferred income taxes |
153 |
177 |
|
Total current assets |
15,391 |
18,604 |
|
Equipment, enterprise software and leasehold improvements, net |
249 |
273 |
|
Goodwill and intangible assets, net |
429 |
458 |
|
Deferred financing costs, net |
46 |
74 |
|
Non-current deposits |
214 |
210 |
|
Deferred income taxes |
91 |
169 |
|
Total assets |
$ 16,420 |
$ 19,788 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Short-term borrowings |
$ 2,610 |
$ - |
|
Accounts payable |
1,984 |
2,309 |
|
Accrued payroll and related costs |
4,424 |
4,002 |
|
Deferred revenue and other liabilities |
515 |
430 |
|
Total current liabilities |
9,533 |
6,741 |
|
Total liabilities |
9,533 |
6,741 |
|
Shareholders' equity: |
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Common stock, par value $0.01 per share |
39 |
37 |
|
Additional paid-in capital |
11,036 |
10,114 |
|
Retained earnings |
(1,081) |
3,462 |
|
Accumulated other comprehensive income |
8 |
- |
|
Treasury stock, at cost |
(3,115) |
(566) |
|
Total shareholders' equity |
6,887 |
13,047 |
|
Total liabilities and shareholders' equity |
$ 16,420 |
$ 19,788 |
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Certain reclassifications have been made to the 2011 Balance Sheet to conform with the 2012 presentation. |
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 December 31, |
Years ended December 31, |
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2012 |
2011 |
2012 |
2011 |
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Revenues |
$ 26,443 |
$ 23,857 |
$ 101,838 |
$ 89,362 |
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Cost of revenues |
21,408 |
19,247 |
82,629 |
71,821 |
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Gross profit |
5,035 |
4,610 |
19,209 |
17,541 |
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Selling, general and administrative expenses |
3,826 |
4,164 |
15,693 |
15,680 |
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Income from operations |
1,209 |
446 |
3,516 |
1,861 |
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Other income/(expense), net |
(11) |
(37) |
(32) |
(69) |
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Income before income taxes |
1,198 |
409 |
3,484 |
1,792 |
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Income tax expense |
470 |
156 |
1,345 |
679 |
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Net income |
$ 728 |
$ 253 |
$ 2,139 |
$ 1,113 |
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Earnings per share: |
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Basic |
$ 0.23 |
$ 0.07 |
$ 0.66 |
$ 0.30 |
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Diluted |
$ 0.22 |
$ 0.07 |
$ 0.64 |
$ 0.30 |
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Weighted average common shares outstanding: |
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Basic |
3,216 |
3,594 |
3,260 |
3,653 |
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Diluted |
3,305 |
3,651 |
3,361 |
3,756 |
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SOURCE
Donna Mascia, Manager, Investor Relations, Mastech Holdings, Inc., 1-888-330-5497