Willdan Group Reports Fourth Quarter/Full Year 2023 Results and Provides 2024 Outlook
- Record revenue and profitability in Q4 2023 and FY 2023.
- Consolidated contract revenue up 37.5% in Q4 2023.
- Net revenue increased by 25.1% in Q4 2023.
- Net income rose to $8.0 million in Q4 2023 from a net loss of $(0.4) million.
- Adjusted EBITDA surged by 48.2% in Q4 2023.
- GAAP Diluted EPS improved to $0.58 in Q4 2023.
- Fiscal year 2023 saw consolidated contract revenue up 18.9%.
- Net revenue for FY 2023 increased by 19.0%.
- Net income grew to $10.9 million in FY 2023 from a net loss of $(8.4) million.
- Adjusted EBITDA soared by 96.3% in FY 2023.
- GAAP Diluted EPS rose to $0.80 in FY 2023.
- Fiscal year 2024 financial targets include net revenue between $270 million and $280 million, Adjusted Diluted EPS between $1.80 per share and $1.87 per share, and Adjusted EBITDA between $48 million and $50 million.
- Conference call scheduled to discuss Q4 2023 financial results.
- None.
Insights
The reported financial results by Willdan Group, Inc. show a substantial year-over-year growth in several key metrics, which is indicative of the company's robust performance. A 37.5% increase in consolidated contract revenue and a 25.1% increase in net revenue for Q4 2023, along with a significant turnaround from a net loss to a net income, reflect a strong market position and effective cost management.
From an investor's perspective, the notable rise in Adjusted EBITDA by 48.2% for the quarter and 96.3% for the fiscal year suggests operational efficiency and profitability that could lead to a revaluation of the company's stock. Moreover, the increase in both GAAP and Adjusted Diluted EPS indicates enhanced shareholder value. The forward-looking financial targets for FY 2024 project continued growth, albeit at a slower pace, which could be interpreted as the company consolidating its gains in a potentially more challenging market environment.
Willdan's performance, particularly the end-of-year program expansions contributing to higher revenue, suggests that their market offerings are in demand. The strategic positioning within their industry, possibly in energy efficiency or software services, appears to be aligning with current market needs. This is reflected in their record revenue figures and the optimistic outlook for 2024.
However, it's important to consider the broader economic context. If the company's growth is outpacing industry averages, it could indicate that Willdan is capturing market share from competitors or benefiting from favorable market conditions. The guidance for the next fiscal year will be a key indicator for investors, as it will reflect management's confidence in the company's ability to sustain its growth trajectory amid economic uncertainties.
Willdan's financial results can be seen as a microcosmic reflection of the broader economic trends. The substantial year-over-year growth in revenue and profitability could be a result of the overall economic recovery post-pandemic, increased infrastructure spending, or sector-specific tailwinds. The company's ability to generate positive cash flow amidst such conditions is commendable and signals strong financial health.
Looking ahead, the set targets for FY 2024, with a relatively modest increase in net revenue and Adjusted EBITDA, could be indicative of cautious optimism. It suggests that while the company expects to grow, it is also mindful of the potential economic headwinds such as inflationary pressures, interest rate hikes and supply chain disruptions that could impact its operations and margins.
“We had an exceptional fourth quarter,” said Mike Bieber, Willdan’s President and Chief Executive Officer. “Revenue, profitability and cash flow were above our expectations, aided by end of year program expansions. Strong performance throughout Willdan capped a record year and positions us for an outstanding 2024.”
Fourth Quarter 2023 Highlights*
-
Consolidated contract revenue of
$155.7 million 37.5% . -
Net revenue** of
$80.8 million 25.1% . -
Net income of
$8.0 million $(0.4) million -
Adjusted EBITDA** of
$17.5 million 48.2% . -
GAAP Diluted EPS of
$0.58 $(0.03) -
Adjusted Diluted EPS** of
$0.80 $0.36
Fiscal Year 2023 Highlights*
-
Consolidated contract revenue of
$510.1 million 18.9% . -
Net revenue** of
$269.7 million 19.0% . -
Net income of
$10.9 million $(8.4) million -
Adjusted EBITDA** of
$45.7 million 96.3% . -
GAAP Diluted EPS of
$0.80 $(0.65) -
Adjusted Diluted EPS** of
$1.75 $0.88
Fiscal Year 2024 Financial Targets
-
Net revenue** between
$270 million $280 million -
Adjusted Diluted EPS** between
$1.80 $1.87 -
Adjusted EBITDA** between
$48 million $50 million
Assumes 14.2 million diluted shares,
*As compared to the same period of fiscal 2022. |
**See “Use of Non-GAAP Financial Measures” below. |
Fourth Quarter 2023 Conference Call
Willdan will be hosting a conference call to discuss its fourth quarter and full fiscal year 2023 financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 877-407-2988 (or 201-389-0923) approximately five minutes prior to the scheduled start time. The conference call will be webcast simultaneously on Willdan’s website at https://edge.media-server.com/mmc/p/7gbp5syv.
A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations.
An Investor Report containing supplemental financial information can also be accessed through Willdan’s website at https://ir.willdangroup.com and selecting “Stock Information”.
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
“Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, 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 and 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. A reconciliation of targeted net income for fiscal year 2024 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA.
“Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, is a non-GAAP financial measure.
“Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, 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. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for fiscal year 2024, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for the fiscal year 2024, which is a forward-looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively.
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, assumptions, aims, 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 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. 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, Willdan’s reliance on work from its top ten clients; 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 make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, rising interest rates, and rising inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; and Willdan’s ability to attract and retain managerial, technical, and administrative talent.
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 29, 2023, 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 |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except par value) |
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|
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|
|
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|
|
December 29, |
|
December 30, |
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|
|
2023 |
|
2022 |
||||
Assets |
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Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
23,397 |
|
|
$ |
8,806 |
|
Restricted cash |
|
|
— |
|
|
|
10,679 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
|
69,677 |
|
|
|
60,202 |
|
Contract assets |
|
|
93,885 |
|
|
|
83,060 |
|
Other receivables |
|
|
1,169 |
|
|
|
4,773 |
|
Prepaid expenses and other current assets |
|
|
3,888 |
|
|
|
6,454 |
|
Total current assets |
|
|
192,016 |
|
|
|
173,974 |
|
Equipment and leasehold improvements, net |
|
|
27,097 |
|
|
|
22,537 |
|
Goodwill |
|
|
131,144 |
|
|
|
130,124 |
|
Right-of-use assets |
|
|
12,465 |
|
|
|
12,390 |
|
Other intangible assets, net |
|
|
31,956 |
|
|
|
41,486 |
|
Other assets |
|
|
4,949 |
|
|
|
10,620 |
|
Deferred income taxes, net |
|
|
15,961 |
|
|
|
18,543 |
|
Total assets |
|
$ |
415,588 |
|
|
$ |
409,674 |
|
Liabilities and Stockholders’ Equity |
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Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
33,193 |
|
|
$ |
28,833 |
|
Accrued liabilities |
|
|
54,129 |
|
|
|
59,110 |
|
Contingent consideration payable |
|
|
— |
|
|
|
4,000 |
|
Contract liabilities |
|
|
13,183 |
|
|
|
12,585 |
|
Notes payable |
|
|
8,452 |
|
|
|
16,903 |
|
Finance lease obligations |
|
|
1,186 |
|
|
|
1,113 |
|
Lease liability |
|
|
4,537 |
|
|
|
4,625 |
|
Total current liabilities |
|
|
114,680 |
|
|
|
127,169 |
|
Notes payable |
|
|
88,979 |
|
|
|
90,544 |
|
Finance lease obligations, less current portion |
|
|
1,184 |
|
|
|
1,601 |
|
Lease liability, less current portion |
|
|
9,758 |
|
|
|
8,599 |
|
Other noncurrent liabilities |
|
|
1,142 |
|
|
|
259 |
|
Total liabilities |
|
|
215,743 |
|
|
|
228,172 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
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|
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||
|
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||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
137 |
|
|
|
133 |
|
Additional paid-in capital |
|
|
185,795 |
|
|
|
177,718 |
|
Accumulated other comprehensive loss |
|
|
(664 |
) |
|
|
— |
|
Retained earnings |
|
|
14,577 |
|
|
|
3,651 |
|
Total stockholders’ equity |
|
|
199,845 |
|
|
|
181,502 |
|
Total liabilities and stockholders’ equity |
|
$ |
415,588 |
|
|
$ |
409,674 |
|
WILLDAN GROUP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(in thousands, except per share amounts) |
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Three Months Ended |
|
Year Ended |
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|
|
December 29, |
|
December 30, |
|
December 29, |
|
December 30, |
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|
2023 |
|
2022 |
|
2023 |
|
2022 |
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|
|
|
|
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|
|
|
|
|
|
|
||||
Contract revenue |
|
$ |
155,677 |
|
|
$ |
113,256 |
|
|
$ |
510,095 |
|
|
$ |
429,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Direct costs of contract revenue (inclusive of directly related depreciation and amortization): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and wages |
|
|
26,347 |
|
|
|
21,458 |
|
|
|
89,915 |
|
|
|
82,972 |
|
Subcontractor services and other direct costs |
|
|
74,905 |
|
|
|
48,691 |
|
|
|
240,413 |
|
|
|
202,587 |
|
Total direct costs of contract revenue |
|
|
101,252 |
|
|
|
70,149 |
|
|
|
330,328 |
|
|
|
285,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
|
54,425 |
|
|
|
43,107 |
|
|
|
179,767 |
|
|
|
143,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
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|
||||
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and wages, payroll taxes and employee benefits |
|
|
26,950 |
|
|
|
21,632 |
|
|
|
95,556 |
|
|
|
81,801 |
|
Facilities and facility related |
|
|
2,365 |
|
|
|
2,288 |
|
|
|
9,565 |
|
|
|
9,287 |
|
Stock-based compensation |
|
|
1,259 |
|
|
|
1,747 |
|
|
|
5,323 |
|
|
|
8,373 |
|
Depreciation and amortization |
|
|
3,913 |
|
|
|
4,249 |
|
|
|
16,431 |
|
|
|
17,489 |
|
Other |
|
|
8,189 |
|
|
|
8,593 |
|
|
|
30,818 |
|
|
|
33,692 |
|
Total general and administrative expenses |
|
|
42,676 |
|
|
|
38,509 |
|
|
|
157,693 |
|
|
|
150,642 |
|
|
|
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|
|
|
|
|
|
|
|
|
|
||||
Income (Loss) from operations |
|
|
11,749 |
|
|
|
4,598 |
|
|
|
22,074 |
|
|
|
(7,063 |
) |
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
(2,303 |
) |
|
|
(2,112 |
) |
|
|
(9,413 |
) |
|
|
(5,328 |
) |
Other, net |
|
|
538 |
|
|
|
(327 |
) |
|
|
1,930 |
|
|
|
939 |
|
Total other expense, net |
|
|
(1,765 |
) |
|
|
(2,439 |
) |
|
|
(7,483 |
) |
|
|
(4,389 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (Loss) before income taxes |
|
|
9,984 |
|
|
|
2,159 |
|
|
|
14,591 |
|
|
|
(11,452 |
) |
Income tax (benefit) expense |
|
|
1,953 |
|
|
|
2,584 |
|
|
|
3,665 |
|
|
|
(3,004 |
) |
Net income (loss) |
|
|
8,031 |
|
|
|
(425 |
) |
|
|
10,926 |
|
|
|
(8,448 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gain (loss) on derivative contracts, net of tax |
|
|
(664 |
) |
|
|
— |
|
|
|
(664 |
) |
|
|
38 |
|
Comprehensive income (loss) |
|
$ |
7,367 |
|
|
$ |
(425 |
) |
|
$ |
10,262 |
|
|
$ |
(8,410 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (Loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.59 |
|
|
$ |
(0.03 |
) |
|
$ |
0.82 |
|
|
$ |
(0.65 |
) |
Diluted |
|
$ |
0.58 |
|
|
$ |
(0.03 |
) |
|
$ |
0.80 |
|
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
13,503 |
|
|
|
13,138 |
|
|
|
13,394 |
|
|
|
13,013 |
|
Diluted |
|
|
13,731 |
|
|
|
13,138 |
|
|
|
13,606 |
|
|
|
13,013 |
|
WILLDAN GROUP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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|
|
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|
|
|
||
|
|
Year Ended |
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|
|
December 29, |
|
December 30, |
||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
10,926 |
|
|
$ |
(8,448 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
16,431 |
|
|
|
17,489 |
|
Deferred income taxes, net |
|
|
2,582 |
|
|
|
(1,694 |
) |
(Gain) loss on sale/disposal of equipment |
|
|
(63 |
) |
|
|
(64 |
) |
Provision for doubtful accounts |
|
|
825 |
|
|
|
243 |
|
Stock-based compensation |
|
|
5,323 |
|
|
|
8,373 |
|
Accretion and fair value adjustments of contingent consideration |
|
|
— |
|
|
|
3,168 |
|
Changes in operating assets and liabilities, net of effects from business acquisitions: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(10,300 |
) |
|
|
6,766 |
|
Contract assets |
|
|
(10,825 |
) |
|
|
(23,772 |
) |
Other receivables |
|
|
3,604 |
|
|
|
1,494 |
|
Prepaid expenses and other current assets |
|
|
3,170 |
|
|
|
(1,230 |
) |
Other assets |
|
|
5,671 |
|
|
|
3,223 |
|
Accounts payable |
|
|
4,360 |
|
|
|
(7,839 |
) |
Accrued liabilities |
|
|
5,917 |
|
|
|
12,970 |
|
Contract liabilities |
|
|
598 |
|
|
|
(914 |
) |
Right-of-use assets |
|
|
995 |
|
|
|
(332 |
) |
Net cash (used in) provided by operating activities |
|
|
39,214 |
|
|
|
9,433 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of equipment, software, and leasehold improvements |
|
|
(9,925 |
) |
|
|
(9,602 |
) |
Proceeds from sale of equipment |
|
|
68 |
|
|
|
75 |
|
Cash paid for acquisitions, net of cash acquired |
|
|
(1,600 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(11,457 |
) |
|
|
(9,527 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments on contingent consideration |
|
|
(4,000 |
) |
|
|
(10,206 |
) |
Receipt of restricted cash |
|
|
— |
|
|
|
10,679 |
|
Payment on restricted cash |
|
|
(10,679 |
) |
|
|
— |
|
Payments on notes payable |
|
|
(1,631 |
) |
|
|
(1,920 |
) |
Payments on debt issuance costs |
|
|
(1,114 |
) |
|
|
(177 |
) |
Proceeds from notes payable |
|
|
— |
|
|
|
1,718 |
|
Borrowings under term loan facility and line of credit |
|
|
105,000 |
|
|
|
20,000 |
|
Repayments under term loan facility and line of credit |
|
|
(112,875 |
) |
|
|
(13,000 |
) |
Principal payments on finance leases |
|
|
(1,304 |
) |
|
|
(1,054 |
) |
Proceeds from stock option exercise |
|
|
182 |
|
|
|
274 |
|
Proceeds from sales of common stock under employee stock purchase plan |
|
|
2,781 |
|
|
|
3,036 |
|
Cash used to pay taxes on stock grants |
|
|
(205 |
) |
|
|
(992 |
) |
Net cash (used in) provided by financing activities |
|
|
(23,845 |
) |
|
|
8,358 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
3,912 |
|
|
|
8,264 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
19,485 |
|
|
|
11,221 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
23,397 |
|
|
$ |
19,485 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid (received) during the period for: |
|
|
|
|
|
|
||
Interest |
|
$ |
10,193 |
|
|
$ |
5,066 |
|
Income taxes |
|
|
(3,072 |
) |
|
|
(1,120 |
) |
Supplemental disclosures of noncash investing and financing activities: |
|
|
|
|
|
|
||
Equipment acquired under finance leases |
|
|
961 |
|
|
|
2,451 |
|
Willdan Group, Inc. and Subsidiaries |
||||||||||||
Reconciliation of GAAP Revenue to Net Revenue |
||||||||||||
(in thousands) |
||||||||||||
(Non-GAAP Measure) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 29, |
|
December 30, |
|
December 29, |
|
December 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Consolidated |
|
|
|
|
|
|
|
|
||||
Contract revenue |
|
$ |
155,677 |
|
$ |
113,256 |
|
$ |
510,095 |
|
$ |
429,138 |
Subcontractor services and other direct costs |
|
|
74,905 |
|
|
48,691 |
|
|
240,413 |
|
|
202,587 |
Net Revenue |
|
$ |
80,772 |
|
$ |
64,565 |
|
$ |
269,682 |
|
$ |
226,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy segment |
|
|
|
|
|
|
|
|
|
|
|
|
Contract revenue |
|
$ |
134,646 |
|
$ |
95,274 |
|
$ |
426,976 |
|
$ |
357,460 |
Subcontractor services and other direct costs |
|
|
74,046 |
|
|
48,020 |
|
|
236,603 |
|
|
199,465 |
Net Revenue |
|
$ |
60,600 |
|
$ |
47,254 |
|
$ |
190,373 |
|
$ |
157,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering and Consulting segment |
|
|
|
|
|
|
|
|
|
|
|
|
Contract revenue |
|
$ |
21,031 |
|
$ |
17,982 |
|
$ |
83,119 |
|
$ |
71,678 |
Subcontractor services and other direct costs |
|
|
859 |
|
|
671 |
|
|
3,810 |
|
|
3,122 |
Net Revenue |
|
$ |
20,172 |
|
$ |
17,311 |
|
$ |
79,309 |
|
$ |
68,556 |
Willdan Group, Inc. and Subsidiaries |
||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA |
||||||||||||||||
(in thousands) |
||||||||||||||||
(Non-GAAP Measure) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
December 29, |
|
December 30, |
|
December 29, |
|
December 30, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
|
$ |
8,031 |
|
$ |
(425 |
) |
|
$ |
10,926 |
|
|
$ |
(8,448 |
) |
|
Interest expense |
|
|
2,303 |
|
|
|
2,112 |
|
|
|
9,413 |
|
|
|
5,328 |
|
Income tax expense (benefit) |
|
|
1,953 |
|
|
|
2,584 |
|
|
|
3,665 |
|
|
|
(3,004 |
) |
Stock-based compensation |
|
|
1,259 |
|
|
|
1,747 |
|
|
|
5,323 |
|
|
|
8,373 |
|
Interest accretion(1) |
|
|
— |
|
|
|
1,509 |
|
|
|
— |
|
|
|
3,168 |
|
Depreciation and amortization |
|
|
3,913 |
|
|
|
4,249 |
|
|
|
16,431 |
|
|
|
17,489 |
|
(Gain) Loss on sale of equipment |
|
|
— |
|
|
|
3 |
|
|
|
(63 |
) |
|
|
(64 |
) |
Tax benefit distribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
434 |
|
Adjusted EBITDA |
|
$ |
17,459 |
|
|
$ |
11,779 |
|
|
$ |
45,695 |
|
|
$ |
23,276 |
|
| _______________ | ||
(1) |
Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration. |
|
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 |
||||||||||||
|
|
December 29, |
|
December 30, |
|
December 29, |
|
December 30, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
|
$ |
8,031 |
|
|
$ |
(425 |
) |
|
$ |
10,926 |
|
|
$ |
(8,448 |
) |
Adjustment for stock-based compensation |
|
|
1,259 |
|
|
|
1,747 |
|
|
|
5,323 |
|
|
|
8,373 |
|
Tax effect of stock-based compensation |
|
|
(237 |
) |
|
|
(249 |
) |
|
|
(1,003 |
) |
|
|
(1,194 |
) |
Adjustment for intangible amortization |
|
|
2,199 |
|
|
|
2,697 |
|
|
|
10,109 |
|
|
|
11,228 |
|
Tax effect of intangible amortization |
|
|
(414 |
) |
|
|
(385 |
) |
|
|
(1,905 |
) |
|
|
(1,601 |
) |
Adjustment for interest accretion |
|
|
— |
|
|
|
1,509 |
|
|
|
— |
|
|
|
3,168 |
|
Tax effect of interest accretion |
|
|
— |
|
|
|
(215 |
) |
|
|
— |
|
|
|
(452 |
) |
Adjustment for refinancing costs |
|
|
— |
|
|
|
— |
|
|
|
467 |
|
|
|
— |
|
Tax effect of refinancing costs |
|
|
— |
|
|
|
— |
|
|
|
(88 |
) |
|
|
— |
|
Adjustment for tax benefit distribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
434 |
|
Tax effect of tax benefit distribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(62 |
) |
Adjusted Net Income (Loss) |
|
$ |
10,837 |
|
|
$ |
4,679 |
|
|
$ |
23,830 |
|
|
$ |
11,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted-average shares outstanding |
|
|
13,731 |
|
|
|
13,138 |
|
|
|
13,606 |
|
|
|
13,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings (loss) per share |
|
$ |
0.58 |
|
|
$ |
(0.03 |
) |
|
$ |
0.80 |
|
|
$ |
(0.65 |
) |
Impact of adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation per share |
|
|
0.09 |
|
|
|
0.13 |
|
|
|
0.39 |
|
|
|
0.64 |
|
Tax effect of stock-based compensation per share |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.07 |
) |
|
|
(0.09 |
) |
Intangible amortization per share |
|
|
0.16 |
|
|
|
0.21 |
|
|
|
0.74 |
|
|
|
0.86 |
|
Tax effect of intangible amortization per share |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.14 |
) |
|
|
(0.12 |
) |
Interest accretion per share |
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.24 |
|
Tax effect of interest accretion per share |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.03 |
) |
Refinancing costs per share |
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Tax effect of refinancing cost per share |
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Tax benefit distribution per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Tax effect of tax benefit distribution per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.00 |
) |
Adjusted Diluted EPS |
|
$ |
0.80 |
|
|
$ |
0.36 |
|
|
$ |
1.75 |
|
|
$ |
0.88 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307327778/en/
Willdan Group, Inc.
Al Kaschalk
Vice President
Tel: 310-922-5643
akaschalk@willdan.com
Source: Willdan Group, Inc.
FAQ
What were Willdan Group, Inc.'s consolidated contract revenue and net revenue in Q4 2023?
How did Willdan Group, Inc.'s net income change in Q4 2023 compared to the previous period?
What were the financial highlights for Willdan Group, Inc. in FY 2023?
What are the financial targets for Willdan Group, Inc. in FY 2024?
When is the conference call to discuss Willdan Group, Inc.'s Q4 2023 financial results?
