Mastech Holdings, Inc. Reports Second Quarter 2009 Results
Revenues for the quarter were
Business activity during the second quarter of 2009 showed a modest improvement from the previous quarter. Accordingly, the rate of decline in our billable consultant headcount improved compared to past quarters. Second quarter billable consultant headcount declined by 3%, compared to 10% in the first quarter of 2009 and 11% in the fourth quarter of 2008. Additionally, our second quarter gross margin of 19.3% was our highest quarterly performance since the second quarter of 2008.
Commenting on the Company's financial position,
In conjunction with its second quarter earnings release,
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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)
June 30, December 31,
2009 2008
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ASSETS
Current assets:
Cash and cash equivalents $6,921 $4,361
Accounts receivable, net 7,666 9,240
Prepaid and other current assets 367 376
Deferred income taxes 423 253
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Total current assets 15,377 14,230
Investment in unconsolidated affiliate 10 41
Equipment, enterprise software and leasehold
improvements, net 190 235
Deferred income taxes 123 191
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Total assets $15,700 $14,697
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,885 $2,454
Accrued payroll and related costs 3,039 2,555
Deferred revenue and other 490 285
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Total current liabilities 5,414 5,294
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Total liabilities 5,414 5,294
Shareholders' equity:
Common stock, par value $0.01 per share 36 36
Additional paid-in capital 9,210 9,078
Retained earnings 1,040 289
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Total shareholders' equity 10,286 9,403
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Total liabilities and shareholders'
equity $15,700 $14,697
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MASTECH HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(unaudited)
Three Months Six Months
ended June 30, ended June 30,
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2009 2008 2009 2008
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Revenues $17,675 $24,450 $38,233 $49,424
Cost of revenues 14,271 19,685 30,986 39,726
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Gross profit 3,404 4,765 7,247 9,698
Selling, general and administrative 2,888 3,290 5,788 7,100
Depreciation and amortization 82 80 167 161
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Income from operations 434 1,395 1,292 2,437
Other income/(expense), net (3) (9) (30) (5)
-- -- --- --
Income before income taxes 431 1,386 1,262 2,432
Income tax expense 175 287 511 361
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Net income $256 $1,099 $751 $2,071
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Earnings per share:
Basic $0.07 $0.30 $0.21 $0.57
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Diluted $0.07 $0.30 $0.21 $0.57
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Weighted average common shares
outstanding:
Basic 3,607 3,607 3,607 3,607
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Diluted 3,666 3,607 3,654 3,607
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SOURCE
CONTACT:
Manager, Investor Relations of
Inc.
Web Site: http://www.mastech.com