Willdan Group Reports Fourth Quarter and Fiscal Year 2020 Results
Willdan Group, Inc. (WLDN) reported its Q4 and fiscal 2020 financial results, revealing a consolidated contract revenue decrease of 25.1% to $96.9 million in Q4, and a fiscal year revenue decline of 11.8% to $391.0 million. The company incurred a net loss of $4.0 million in Q4, translating to $(0.33) per diluted share, and an annual net loss of $14.5 million, or $(1.23) per diluted share. Adjusted net income for Q4 was $5.6 million, with adjusted EBITDA of $8.6 million. Despite these challenges, Willdan secured $781 million in contracts, positioning for future growth.
- Secured $781 million in California Investor Owned Utility contracts.
- Achieved record cash flow from operations of $47 million for fiscal 2020.
- Incremental contract revenue from government projects increased by 25.1%.
- Q4 consolidated contract revenue decreased by 25.1% year-over-year.
- Annual consolidated contract revenue down 11.8% due to Covid-19 impact.
- Net loss for fiscal 2020 was $14.5 million, compared to net income of $4.8 million in fiscal 2019.
Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN), a provider of professional technical and consulting services, today reported financial results for its fourth quarter and fiscal year ended January 1, 2021.
Fourth Quarter 2020 Summary
-
Signed
$781 million in California Investor Owned Utility Contracts -
Consolidated contract revenue of
$96.9 million , a decrease of25.1% -
Net revenue of
$50.8 million , a decrease of16.8% -
Net loss of
$4.0 million , or$(0.33) per diluted share -
Adjusted net income of
$5.6 million , or$0.46 per diluted share -
Adjusted EBITDA of
$8.6 million , or16.9% of net revenue -
Cash provided by operating activities of
$20.1 million
Fiscal Year 2020 Summary
-
Consolidated contract revenue of
$391.0 million , a decrease of11.8% -
Net revenue of
$194.5 million , a decrease of2.5% -
Net loss of
$14.5 million , or$ (1.23) per diluted share -
Adjusted net income of
$15.3 million , or$1.30 per diluted share -
Adjusted EBITDA of
$28.1 million , or14.5% of net revenue -
Cash provided by operating activities of
$47.0 million
“In 2020 we proved that we could acquire new capabilities with acquisitions, combine and strategically cross sell those new capabilities and experience, and then win what we believe are the largest most complex contracts in our industry," said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer. “We believe our growth model is repeatable and durable, so we plan to continue adding complimentary skills to catalyze organic growth. I thank our new customers for trusting us, and our team of employees for their dedication and hard work in the most trying times.
Willdan serves one of the most exciting markets in the world at one of the most exciting times. A cleaner, low carbon energy cycle is transforming our electric grid, buildings, industrial production and transportation networks. Willdan helps these clients evaluate new technical advances and implement cost effective solutions. During 2020, we generated
Fourth Quarter 2020 Financial Results
Consolidated contract revenue for the fourth quarter of 2020 was
Net Revenue for the fourth quarter of 2020 was
Direct costs of contract revenue were
Total general and administrative expenses for the fourth quarter of 2020 was
Total other income (expense), net for the fourth quarter of 2020 was
Income tax benefit was
Net loss for the fourth quarter of 2020 was
Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below) was
Fiscal Year 2020 Financial Results
Consolidated contract revenue for fiscal 2020 was
Net Revenue for fiscal 2020 was
Direct costs of contract revenue were
Total general and administrative expenses for fiscal 2020 was
Total other income (expense), net was
Income tax benefit of
Net loss for fiscal 2020 was
Adjusted EBITDA (see “Use of Non-GAAP Financial Measures” below) was
Liquidity and Capital Resources
As of January 1, 2021, we had
As of January 1, 2020, we had
The impact of the Covid-19 outbreak on our business, results of operations, financial condition and cash flows in future periods will depend largely on future developments, including the duration and spread of the outbreak in the U.S., its severity, the actions to contain the novel coronavirus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume.
Environmental, Social and Governance (“ESG”)
Willdan views its ESG efforts as integral to its business, with initiatives consistent with its objective of long-term value creation. “Climate change mitigation is embedded in Willdan’s DNA, and our work tackles this essential challenge every day,” said Tom Brisbin, Chairman and Chief Executive Officer. “Our teams design, lead, and support projects that help customers reduce their carbon intensity to become cleaner, more sustainable organizations.” Willdan is committed to environmental stewardship; the health, welfare, and development of its employees; and the support of its local communities. For more information and to view Willdan’s inaugural sustainability report, visit the Willdan Group website at www.willdan.com.
Q4 2020 Conference Call
Willdan will be hosting a conference call related to fourth quarter earnings today, March 11, 2021, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 866-248-8441 approximately 10 minutes prior to the scheduled start time and enter confirmation code 3513136. The conference call will be webcast simultaneously on Willdan’s website at ir.willdangroup.com/events-presentations.
A replay of the conference call will be available until March 25, 2021 by calling 888-203-1112 and entering confirmation code 3513136.
An Investor Report containing supplemental financial information can also be accessed on the home page of Willdan’s investor relations website.
About Willdan Group, Inc.
Willdan is a nationwide provider of professional technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com.
Use of Non-GAAP Financial Measures
“Net Revenue,” defined as contract revenue as reported in accordance with GAAP minus subcontractor services and other direct costs, is a non-GAAP financial measure, Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with U.S. generally accepted accounting principles (“GAAP”) and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release.
“Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, transaction costs and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes.
Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital, stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release.
“Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization and transaction costs, each net of tax, is a non-GAAP financial measure.
“Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization and transaction costs, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release.
Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS.
Forward Looking Statements
Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the impact of Covid-19 on Willdan’s business, Willdan’s ability to capitalize on increased energy efficiency spending in large markets and expected benefits from its acquisitions. All statements other than statements of historical fact included in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties including, but not limited to, the extent to which the Covid-19 pandemic and measures taken to contain its spread ultimately impact Willdan’s business, results of operation and financial condition, including the speed with which its various direct install programs for small businesses are able to resume normal operations following government mandated shutdowns and phased re-openings; and Willdan’s ability to expand its services or meet the needs of customers in markets in which it operates. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, changes in state, local and regional economies and government budgets, Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes, Willdan’s ability to successfully integrate its acquisitions, including its acquisitions of Onsite Energy and E3, Inc., and execute on its growth strategy, Willdan’s ability to make principal and interest payments as they come due and comply with financial and other covenants in its credit agreement, and Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures.
The factors noted above and risks included in Willdan’s other SEC filings may be increased or intensified as a result of the Covid-19 pandemic, including if there is a resurgence of the Covid-19 virus after the initial outbreak subsides. The extent to which the Covid-19 pandemic ultimately impacts Willdan’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted. See the risk factor in Part II, Item 1A. “Risk Factors” in Willdan’s Quarterly Report on Form 10-Q for the quarter ended April 3, 2020, “The Covid-19 pandemic and health and safety measures intended to reduce its spread have adversely affected, and may continue to adversely affect, our business, results of operations and financial condition.” for more information. All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 27, 2019 and Quarterly Report on Form 10-Q filed for the quarter ended April 3, 2020, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law.
WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) |
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|
|
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||
|
|
January 1, |
|
December 27, |
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||||
|
|
2021 |
|
2019 |
|
||||
Assets |
|
||||||||
Current assets: |
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
28,405 |
|
|
$ |
5,452 |
|
|
Accounts receivable, net of allowance for doubtful accounts of |
|
|
60,403 |
|
|
|
57,504 |
|
|
Contract assets |
|
|
62,426 |
|
|
|
101,418 |
|
|
Other receivables |
|
|
6,405 |
|
|
|
4,845 |
|
|
Prepaid expenses and other current assets |
|
|
5,564 |
|
|
|
6,254 |
|
|
Total current assets |
|
|
163,203 |
|
|
|
175,473 |
|
|
Equipment and leasehold improvements, net |
|
|
12,506 |
|
|
|
12,051 |
|
|
Goodwill |
|
|
130,124 |
|
|
|
127,647 |
|
|
Right-of-use assets |
|
|
20,130 |
|
|
|
22,297 |
|
|
Other intangible assets, net |
|
|
64,256 |
|
|
|
76,837 |
|
|
Other assets |
|
|
5,993 |
|
|
|
16,296 |
|
|
Deferred income taxes, net |
|
|
14,111 |
|
|
|
9,312 |
|
|
Total assets |
|
$ |
410,323 |
|
|
$ |
439,913 |
|
|
Liabilities and Stockholders’ Equity |
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Current liabilities: |
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|
|
|
|
|
|
||
Accounts payable |
|
$ |
41,372 |
|
|
$ |
34,000 |
|
|
Accrued liabilities |
|
|
41,754 |
|
|
|
67,615 |
|
|
Contingent consideration payable |
|
|
12,321 |
|
|
|
5,155 |
|
|
Contract liabilities |
|
|
7,434 |
|
|
|
5,563 |
|
|
Notes payable |
|
|
14,996 |
|
|
|
13,720 |
|
|
Finance lease obligations |
|
|
248 |
|
|
|
375 |
|
|
Lease liability |
|
|
5,844 |
|
|
|
5,550 |
|
|
Total current liabilities |
|
|
123,969 |
|
|
|
131,978 |
|
|
Contingent consideration payable |
|
|
2,999 |
|
|
|
4,891 |
|
|
Notes payable |
|
|
98,178 |
|
|
|
116,631 |
|
|
Finance lease obligations, less current portion |
|
|
236 |
|
|
|
191 |
|
|
Lease liability, less current portion |
|
|
15,649 |
|
|
|
18,411 |
|
|
Other noncurrent liabilities |
|
|
128 |
|
|
|
533 |
|
|
Total liabilities |
|
|
241,159 |
|
|
|
272,635 |
|
|
|
|
|
|
|
|
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||
Commitments and contingencies |
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Stockholders’ equity: |
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|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
|
Common stock, |
|
|
122 |
|
|
|
115 |
|
|
Additional paid-in capital |
|
|
149,014 |
|
|
|
132,547 |
|
|
Accumulated other comprehensive loss |
|
|
(488 |
) |
|
|
(396 |
) |
|
Retained earnings |
|
|
20,516 |
|
|
|
35,012 |
|
|
Total stockholders’ equity |
|
|
169,164 |
|
|
|
167,278 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
410,323 |
|
|
$ |
439,913 |
|
|
WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share amounts) |
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Three Months Ended |
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Year Ended |
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|
January 1, |
|
December 27, |
|
January 1, |
|
December 27, |
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|
2021 |
|
2019 |
|
2021 |
|
2019 |
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|
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|
||||
Contract revenue |
|
$ |
96,897 |
|
|
$ |
129,416 |
|
|
$ |
390,980 |
|
|
$ |
443,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Direct costs of contract revenue (inclusive of directly related depreciation and amortization): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and wages |
|
|
16,252 |
|
|
|
17,806 |
|
|
|
65,149 |
|
|
|
64,485 |
|
Subcontractor services and other direct costs |
|
|
46,143 |
|
|
|
68,393 |
|
|
|
196,438 |
|
|
|
243,641 |
|
Total direct costs of contract revenue |
|
|
62,395 |
|
|
|
86,199 |
|
|
|
261,587 |
|
|
|
308,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and wages, payroll taxes and employee benefits |
|
|
17,956 |
|
|
|
20,136 |
|
|
|
71,229 |
|
|
|
66,303 |
|
Facilities and facility related |
|
|
2,484 |
|
|
|
2,499 |
|
|
|
10,481 |
|
|
|
8,568 |
|
Stock-based compensation |
|
|
3,310 |
|
|
|
3,964 |
|
|
|
16,113 |
|
|
|
12,112 |
|
Depreciation and amortization |
|
|
4,419 |
|
|
|
3,719 |
|
|
|
18,743 |
|
|
|
15,027 |
|
Other |
|
|
12,051 |
|
|
|
7,370 |
|
|
|
29,054 |
|
|
|
23,600 |
|
Total general and administrative expenses |
|
|
40,220 |
|
|
|
37,688 |
|
|
|
145,620 |
|
|
|
125,610 |
|
Income (Loss) from operations |
|
|
(5,718 |
) |
|
|
5,529 |
|
|
|
(16,227 |
) |
|
|
9,363 |
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|
|
|
|
|
|
|
|
|
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|
||||
Other income (expense): |
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|
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|
||||
Interest expense, net |
|
|
(1,085 |
) |
|
|
(1,301 |
) |
|
|
(5,068 |
) |
|
|
(4,900 |
) |
Other, net |
|
|
914 |
|
|
|
162 |
|
|
|
1,626 |
|
|
|
193 |
|
Total other expense, net |
|
|
(171 |
) |
|
|
(1,139 |
) |
|
|
(3,442 |
) |
|
|
(4,707 |
) |
Income (Loss) before income taxes |
|
|
(5,889 |
) |
|
|
4,390 |
|
|
|
(19,669 |
) |
|
|
4,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax (benefit) expense |
|
|
(1,892 |
) |
|
|
1,188 |
|
|
|
(5,173 |
) |
|
|
(185 |
) |
Net income (loss) |
|
|
(3,997 |
) |
|
|
3,202 |
|
|
|
(14,496 |
) |
|
|
4,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized gain (loss) on derivative contracts |
|
|
114 |
|
|
|
84 |
|
|
|
(92 |
) |
|
|
(396 |
) |
Comprehensive income (loss) |
|
$ |
(3,883 |
) |
|
$ |
3,286 |
|
|
$ |
(14,588 |
) |
|
$ |
4,445 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Earnings (Loss) per share: |
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|
|
|
|
|
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|
|
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|
||||
Basic |
|
$ |
(0.33 |
) |
|
$ |
0.28 |
|
|
$ |
(1.23 |
) |
|
$ |
0.43 |
|
Diluted |
|
$ |
(0.33 |
) |
|
$ |
0.27 |
|
|
$ |
(1.23 |
) |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
12,011 |
|
|
|
11,357 |
|
|
|
11,793 |
|
|
|
11,162 |
|
Diluted |
|
|
12,011 |
|
|
|
11,913 |
|
|
|
11,793 |
|
|
|
11,766 |
|
WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
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|
|
Year Ended |
||||||
|
|
January 1, |
|
December 27, |
||||
|
|
2021 |
|
2019 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
(14,496 |
) |
|
$ |
4,841 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
18,743 |
|
|
|
15,472 |
|
Deferred income taxes, net |
|
|
(5,209 |
) |
|
|
(209 |
) |
(Gain) loss on sale/disposal of equipment |
|
|
(15 |
) |
|
|
(8 |
) |
Provision for doubtful accounts |
|
|
1,330 |
|
|
|
1,051 |
|
Stock-based compensation |
|
|
16,113 |
|
|
|
12,112 |
|
Accretion and fair value adjustments of contingent consideration |
|
|
7,707 |
|
|
|
(302 |
) |
Changes in operating assets and liabilities, net of effects from business acquisitions: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(4,229 |
) |
|
|
11,627 |
|
Contract assets |
|
|
35,498 |
|
|
|
(34,598 |
) |
Other receivables |
|
|
(1,192 |
) |
|
|
(2,714 |
) |
Prepaid expenses and other current assets |
|
|
577 |
|
|
|
(343 |
) |
Other assets |
|
|
9,955 |
|
|
|
(6,520 |
) |
Accounts payable |
|
|
7,372 |
|
|
|
(6,294 |
) |
Accrued liabilities |
|
|
(27,210 |
) |
|
|
16,761 |
|
Contract liabilities |
|
|
1,871 |
|
|
|
315 |
|
Right-of-use assets |
|
|
210 |
|
|
|
430 |
|
Net cash provided by operating activities |
|
|
47,025 |
|
|
|
11,621 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of equipment and leasehold improvements |
|
|
(5,076 |
) |
|
|
(6,637 |
) |
Proceeds from sale of equipment |
|
|
17 |
|
|
|
45 |
|
Cash paid for acquisitions, net of cash acquired |
|
|
— |
|
|
|
(71,756 |
) |
Net cash used in investing activities |
|
|
(5,059 |
) |
|
|
(78,348 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments on contingent consideration |
|
|
(1,433 |
) |
|
|
(1,381 |
) |
Payments on notes payable |
|
|
(205 |
) |
|
|
(1,842 |
) |
Payments on debt issuance costs |
|
|
(327 |
) |
|
|
(709 |
) |
Proceeds from notes payable |
|
|
1,140 |
|
|
|
— |
|
Borrowings under term loan facility and line of credit |
|
|
24,000 |
|
|
|
138,000 |
|
Repayments under term loan facility and line of credit |
|
|
(42,000 |
) |
|
|
(78,000 |
) |
Principal payments on finance leases |
|
|
(549 |
) |
|
|
(639 |
) |
Proceeds from stock option exercise |
|
|
1,082 |
|
|
|
931 |
|
Proceeds from sales of common stock under employee stock purchase plan |
|
|
2,224 |
|
|
|
1,740 |
|
Shares used to pay taxes on stock grants |
|
|
(2,946 |
) |
|
|
(2,880 |
) |
Restricted Stock Award and Units |
|
|
1 |
|
|
|
— |
|
Proceeds from unregistered sales of equity |
|
|
— |
|
|
|
1,700 |
|
Net cash (used in) provided by financing activities |
|
|
(19,013 |
) |
|
|
56,920 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
22,953 |
|
|
|
(9,807 |
) |
Cash and cash equivalents at beginning of period |
|
|
5,452 |
|
|
|
15,259 |
|
Cash and cash equivalents at end of period |
|
$ |
28,405 |
|
|
$ |
5,452 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for: |
|
|
|
|
|
|
||
Interest |
|
$ |
5,031 |
|
|
$ |
4,169 |
|
Income taxes |
|
|
174 |
|
|
|
4,052 |
|
Supplemental disclosures of noncash investing and financing activities: |
|
|
|
|
|
|
||
Loss on cash flow hedge valuations, net of tax |
|
|
(92 |
) |
|
|
(396 |
) |
Contingent consideration related to business acquisitions |
|
|
— |
|
|
|
— |
|
Other working capital adjustment |
|
|
1,179 |
|
|
|
— |
|
Equipment acquired under finance leases |
|
|
467 |
|
|
|
661 |
|
Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
January 1, |
|
December 27, |
|
January 1, |
|
December 27, |
||||
|
|
2021 |
|
2019 |
|
2021 |
|
2019 |
||||
Consolidated |
|
|
|
|
|
|
|
|
||||
Contract revenue |
|
$ |
96,897 |
|
$ |
129,416 |
|
$ |
390,980 |
|
$ |
443,099 |
Subcontractor services and other direct costs |
|
|
46,143 |
|
|
68,393 |
|
|
196,438 |
|
|
243,641 |
Net Revenue |
|
$ |
50,754 |
|
$ |
61,023 |
|
$ |
194,542 |
|
$ |
199,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy segment |
|
|
|
|
|
|
|
|
|
|
|
|
Contract revenue |
|
$ |
81,784 |
|
$ |
112,806 |
|
$ |
324,178 |
|
$ |
370,716 |
Subcontractor services and other direct costs |
|
|
44,566 |
|
|
65,662 |
|
|
186,824 |
|
|
227,814 |
Net Revenue |
|
$ |
37,218 |
|
$ |
47,144 |
|
$ |
137,354 |
|
$ |
142,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering and Consulting segment |
|
|
|
|
|
|
|
|
|
|
|
|
Contract revenue |
|
$ |
15,113 |
|
$ |
16,610 |
|
$ |
66,802 |
|
$ |
72,383 |
Subcontractor services and other direct costs |
|
|
1,577 |
|
|
2,731 |
|
|
9,614 |
|
|
15,827 |
Net Revenue |
|
$ |
13,536 |
|
$ |
13,879 |
|
$ |
57,188 |
|
$ |
56,556 |
Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
January 1, |
|
December 27, |
|
January 1, |
|
December 27, |
||||||||
|
|
2021 |
|
2019 |
|
2021 |
|
2019 |
||||||||
Net income (loss) |
|
$ |
(3,997 |
) |
|
$ |
3,202 |
|
|
$ |
(14,496 |
) |
|
$ |
4,841 |
|
Interest expense |
|
|
1,085 |
|
|
|
1,301 |
|
|
|
5,068 |
|
|
|
4,900 |
|
Income tax expense (benefit) |
|
|
(1,892 |
) |
|
|
1,188 |
|
|
|
(5,173 |
) |
|
|
(185 |
) |
Stock-based compensation |
|
|
3,310 |
|
|
|
3,964 |
|
|
|
16,113 |
|
|
|
12,112 |
|
Interest accretion (1) |
|
|
5,648 |
|
|
|
238 |
|
|
|
7,707 |
|
|
|
(302 |
) |
Depreciation and amortization |
|
|
4,419 |
|
|
|
3,848 |
|
|
|
18,743 |
|
|
|
15,472 |
|
Transaction costs (2) |
|
|
13 |
|
|
|
101 |
|
|
|
179 |
|
|
|
886 |
|
(Gain) Loss on sale of equipment |
|
|
— |
|
|
|
(3 |
) |
|
|
(15 |
) |
|
|
(8 |
) |
Adjusted EBITDA |
|
$ |
8,586 |
|
|
$ |
13,839 |
|
|
$ |
28,126 |
|
|
$ |
37,716 |
|
(1) |
Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration. |
|
(2) |
Transaction costs represents acquisition and acquisition related costs. |
Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share amounts) (Non-GAAP Measure) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
January 1, |
|
December 27, |
|
January 1, |
|
December 27, |
|||||||
|
|
2021 |
|
2019 |
|
2021 |
|
2019 |
|||||||
Net income (loss) |
|
$ |
(3,997 |
) |
|
$ |
3,202 |
|
$ |
(14,496 |
) |
|
$ |
4,841 |
|
Adjustment for stock-based compensation |
|
|
3,310 |
|
|
|
3,964 |
|
|
16,113 |
|
|
|
12,112 |
|
Tax effect of stock-based compensation |
|
|
(691 |
) |
|
|
587 |
|
|
(3,366 |
) |
|
|
(1,369 |
) |
Adjustment for intangible amortization |
|
|
3,136 |
|
|
|
2,691 |
|
|
13,657 |
|
|
|
11,621 |
|
Tax effect of intangible amortization |
|
|
(655 |
) |
|
|
830 |
|
|
(2,853 |
) |
|
|
(1,313 |
) |
Adjustment for Interest Accretion |
|
|
5,648 |
|
|
|
— |
|
|
7,707 |
|
|
|
— |
|
Tax effect on Interest Accretion |
|
|
(1,180 |
) |
|
|
— |
|
|
(1,610 |
) |
|
|
— |
|
Adjustment for transaction costs |
|
|
13 |
|
|
|
101 |
|
|
179 |
|
|
|
886 |
|
Tax effect of transaction costs |
|
|
(3 |
) |
|
|
88 |
|
|
(37 |
) |
|
|
(100 |
) |
Adjusted Net Income |
|
$ |
5,581 |
|
|
$ |
11,463 |
|
$ |
15,294 |
|
|
$ |
26,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted weighted-average shares outstanding |
|
|
12,011 |
|
|
|
11,913 |
|
|
11,793 |
|
|
|
11,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted earnings (loss) per share |
|
$ |
(0.33 |
) |
|
$ |
0.27 |
|
$ |
(1.23 |
) |
|
$ |
0.41 |
|
Impact of adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Stock-based compensation per share |
|
|
0.28 |
|
|
|
0.33 |
|
|
1.37 |
|
|
|
1.03 |
|
Tax effect of stock-based compensation per share |
|
|
(0.07 |
) |
|
|
0.05 |
|
|
(0.29 |
) |
|
|
(0.12 |
) |
Intangible amortization per share |
|
|
0.26 |
|
|
|
0.23 |
|
|
1.16 |
|
|
|
0.99 |
|
Tax effect of intangible amortization per share |
|
|
(0.05 |
) |
|
|
0.07 |
|
|
(0.24 |
) |
|
|
(0.11 |
) |
Adjustment for Interest Accretion |
|
|
0.47 |
|
|
|
— |
|
|
0.65 |
|
|
|
— |
|
Tax effect on Interest Accretion |
|
|
(0.10 |
) |
|
|
— |
|
|
(0.14 |
) |
|
|
— |
|
Transaction costs per share |
|
|
0.00 |
|
|
|
0.01 |
|
|
0.02 |
|
|
|
0.08 |
|
Tax effect of transaction costs per share |
|
|
(0.00 |
) |
|
|
0.01 |
|
|
— |
|
|
|
(0.01 |
) |
Adjusted Diluted EPS |
|
$ |
0.46 |
|
|
$ |
0.97 |
|
$ |
1.30 |
|
|
$ |
2.27 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210311005993/en/
FAQ
What are Willdan's Q4 2020 financial results?
How did Willdan perform in fiscal year 2020?
What new contracts did Willdan secure recently?
What is Willdan's adjusted EBITDA for Q4 2020?