UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) October 19, 2011
MASTECH HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania
(State or Other Jurisdiction
of Incorporation)
| 001-34099 | 26-2753540 | |
| (Commission File Number) |
(IRS Employer Identification No.) | |
| 1000 Commerce Drive, Suite 500, Pittsburgh, PA | 15275 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
(412) 787-2100
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
On October 19, 2011, Mastech Holdings, Inc. issued a press release announcing its financial results for the third quarter ended September 30, 2011. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information contained herein and in the accompanying exhibit shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) The following exhibit is furnished with this Form 8-K:
| 99.1 | Press Release issued by Mastech Holdings, Inc. on October 19, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MASTECH HOLDINGS, INC. | ||
| By: | /s/ John J. Cronin, Jr. | |
| Name: | John J. Cronin, Jr. | |
| Title: | Chief Financial Officer |
October 19, 2011
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release From Mastech Holdings, Inc., dated October 19, 2011. | |
Exhibit 99.1
FOR IMMEDIATE RELEASE:
Mastech Holdings, Inc. Reports Third Quarter 2011 Results
PITTSBURGH, PA – October 19, 2011 - Mastech Holdings, Inc. (NYSE Amex: MHH – News), a national provider of Information Technology and Specialized Healthcare staffing services, announced today its financial results for the third quarter ended September 30, 2011.
Third Quarter Results:
Revenues for the quarter were $23.5 million which represented a 24% increase over the corresponding quarter last year. Gross profit in the 2011 quarter totaled $4.6 million or approximately $1.0 million greater than those achieved during the third quarter of 2010. Gross margins of 19.8% were better than the 19.3% generated last year. Consolidated net income for the third quarter 2011 totaled $441,000 or $0.12 per diluted share, compared to $187,000 or $0.05 per diluted share, in the same period last year.
Despite a significant amount of economic uncertainty during the third quarter, our business activity levels remained stable. Demand for our IT staffing services was higher than the previous quarter and our healthcare staffing business continued to achieve sequential revenue growth for the fifth consecutive quarter.
Kevin Horner, Chief Executive Officer of Mastech stated, “I’m pleased to report that during the quarter we grew total revenues by 6.2% sequentially and delivered an earnings per share performance that was $0.02 per diluted share better than second quarter 2011’s results. This solid performance reflects operating leverage opportunities in our cost structure and improvements in operating efficiencies, as selling, general and administrative expenses declined to 16.7% of revenues.”
Commenting on the Company’s financial position, Jack Cronin, Chief Financial Officer, stated, “Our balance sheet remains strong with $5.6 million of cash on hand and no outstanding debt. During the quarter we amended our credit facility with PNC Bank which was set to expire on October 15, 2011. The amended facility increases our maximum borrowing capacity to $19 million and extends the term of the agreement through August 31, 2014.”
In conjunction with its third quarter earnings release, Mastech will host a conference call at 9:00 A. M. EDT on October 19, 2011 to discuss these results and to answer questions. A live webcast of this conference call will be available on the company’s website, 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 October 26, 2011.
About Mastech Holdings, Inc.:
Leveraging the power of over 20 years of IT experience, Mastech (NYSE Amex: 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 Mastech can be found at Mastech’s website: 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, 2010.
# # #
For more information, contact:
Donna Mascia
Manager, Investor Relations
Mastech Holdings, Inc.
888.330.5497
MASTECH HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
| September 30, 2011 |
December 31, 2010 |
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| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 5,614 | $ | 6,334 | ||||
| Accounts receivable, net |
12,374 | 9,721 | ||||||
| Prepaid and other current assets |
1,233 | 1,395 | ||||||
| Deferred income taxes |
93 | 177 | ||||||
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| Total current assets |
19,314 | 17,627 | ||||||
| Equipment, enterprise software and leasehold improvements, net |
185 | 185 | ||||||
| Goodwill and intangible assets, net |
468 | 498 | ||||||
| Investment in unconsolidated affiliate |
— | 5 | ||||||
| Deferred financing costs, net |
81 | — | ||||||
| Deferred income taxes |
87 | 82 | ||||||
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| Total assets |
$ | 20,135 | $ | 18,397 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
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| Accounts payable |
$ | 2,013 | $ | 2,695 | ||||
| Accrued payroll and related costs |
4,748 | 3,024 | ||||||
| Deferred revenue and other liabilities |
361 | 330 | ||||||
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| Total current liabilities |
7,122 | 6,049 | ||||||
| Total liabilities |
7,122 | 6,049 | ||||||
| Shareholders’ equity: |
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| Common stock, par value $0.01 per share |
37 | 37 | ||||||
| Additional paid-in capital |
10,086 | 9,962 | ||||||
| Retained earnings |
3,209 | 2,349 | ||||||
| Treasury stock, at cost |
(319 | ) | — | |||||
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| Total shareholders’ equity |
13,013 | 12,348 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 20,135 | $ | 18,397 | ||||
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MASTECH HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
| Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues |
$ | 23,489 | $ | 18,869 | $ | 65,505 | $ | 51,506 | ||||||||
| Cost of revenues |
18,840 | 15,230 | 52,574 | 41,428 | ||||||||||||
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| Gross profit |
4,649 | 3,639 | 12,931 | 10,078 | ||||||||||||
| Selling, general and administrative expenses |
3,921 | 3,310 | 11,516 | 9,447 | ||||||||||||
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| Income from operations |
728 | 329 | 1,415 | 631 | ||||||||||||
| Other income/(expense), net |
(18 | ) | (4 | ) | (32 | ) | (18 | ) | ||||||||
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| Income before income taxes |
710 | 325 | 1,383 | 613 | ||||||||||||
| Income tax expense |
269 | 138 | 523 | 254 | ||||||||||||
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| Net income |
$ | 441 | $ | 187 | $ | 860 | $ | 359 | ||||||||
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| Earnings per share: |
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| Basic |
$ | 0.12 | $ | 0.05 | $ | 0.23 | $ | 0.10 | ||||||||
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| Diluted |
$ | 0.12 | $ | 0.05 | $ | 0.23 | $ | 0.10 | ||||||||
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| Weighted average common shares outstanding: |
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| Basic |
3,657 | 3,691 | 3,673 | 3,667 | ||||||||||||
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| Diluted |
3,755 | 3,752 | 3,786 | 3,742 | ||||||||||||
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