Free 7-day Trial
All Articles and Columns »

Willdan Group Inc. Reports Operating Results (10-Q)

August 13, 2009 | About:
10qk

Willdan Group Inc. (WLDN) filed Quarterly Report for the period ended 2009-07-03.

WILLDAN GROUP INC. is a leading single resource provider of specialized outsourced services to small and mid-sized public agencies located primarily in California and other western states. Willdan Group Inc. assists cities and other government agencies with a broad range of services including civil engineering building and safety services geotechnical engineering financial and economic consulting and disaster preparedness and homeland security. Strategically located throughout California and other Western states Willdan\'s market focus and competitive advantages support ample opportunities for geographic expansion into attractive growing markets driven by unmet demand for privatized governmental services. Willdan\'s depth of executive expertise and specialized talent base has delivered a track record of consistent growth in contract revenues and strong performance metrics. Willdan Group Inc. has a market cap of $11.9 million; its shares were traded at around $1.65 with and P/S ratio of 0.2.

Highlight of Business Operations:

Contract revenue. Our contract revenue was $15.5 million for the three months ended July 3, 2009, with $11.6 million attributable to the Engineering Services segment and $3.1 million attributable to the Public Finance Services segment. Our Homeland Security Services segment generated $0.8 million during this period. Consolidated contract revenue decreased $2.3 million, or 13%, to $15.5 million for the three months ended July 3, 2009, from $17.8 million for the three months ended June 27, 2008. This was due primarily to a decrease of $2.2 million, or 15.9%, in contract revenue for the Engineering Services segment primarily as a result of the continuing decline in our building and safety projects which is directly and indirectly affected by the residential housing market. Contract revenue in the Public Finance Services segment decreased $0.4 million, or 11.4%, from $3.5 million to $3.1 million for the three months ended July 3, 2009 as compared to the three months ended June 27, 2008. Contract revenue for our Homeland Security Services segment increased $0.2 million, or 33.3%, from $0.6 million to $0.8 million in the three months ended July 3, 2009 as compared to the three months ended June 27, 2008.

Direct costs of contract revenue. Direct costs of contract revenue were $7.4 million for the three months ended July 3, 2009, with $6.1 million attributable to the Engineering Services segment and $0.9 million attributable to the Public Finance Services segment. The additional $0.4 million is attributable to direct costs of contract revenue for our Homeland Security Services segment. Direct costs of contract revenue for the Engineering Services segment for the three months ended July 3, 2009 includes $1.8 million relating to Willdan Energy Solutions. Overall, direct costs decreased by $0.2 million, or 2.6%, to $7.4 million for the three months ended July 3, 2009, from $7.6 million for the three months ended June 27, 2008. This net decrease is attributable to a decrease in direct costs within our Engineering Services segment of $0.3 million, offset by an increase of $0.1 million within our Homeland Security Services segment. Direct costs within the Public Finance Services segment remained flat.

Direct costs decreased as a result of a decrease in salaries and wages of $1.0 million, partially offset by increases in subconsultant services and other direct costs of $0.6 million and $0.2 million, respectively. Within direct costs of contract revenue, salaries and wages decreased to 29.0% of contract revenue for the three months ended July 3, 2009 from 31.1% for the three months ended June 27, 2008. Comparing those same periods, subconsultant services increased to 14.1% of contract revenue from 8.6% of contract revenue. Subconsultant costs increased primarily due to our acquisition of Willdan Energy Solutions in June 2008. Willdan Energy Solutions utilizes a higher percentage of subconsultants and other direct costs than our other subsidiaries. Excluding subconsultant services and other direct costs, direct salaries and wages decreased by $1.0 million, or 18.2% to $4.5 million for the three months ended July 3, 2009 from $5.5 million for the three months ended June 27, 2008.

General and administrative expenses. General and administrative expenses decreased by $0.8 million, or 7.8%, to $9.5 million for the three months ended July 3, 2009 from $10.3 million for the three months ended June 27, 2008. This was due primarily to a decrease of $0.6 million in general and administrative expenses of the Engineering Services segment, which is net of the increase in general and administrative expenses incurred due to our acquisition of Willdan Energy Solutions in June 2008. General and administrative expenses decreased by $0.1 million for our Homeland Security Services segment and remained flat for our Public Finance Services segment. Our unallocated corporate expenses decreased by $0.1 million. General and administrative expenses as a percentage of contract revenue increased to 61.3% for the three months ended July 3, 2009 from 58.1% for the three months ended June 27, 2008.

Contract revenue. Our contract revenue was $32.7 million for the six months ended July 3, 2009, with $25.0 million attributable to the Engineering Services segment and $6.1 million attributable to the Public Finance Services segment. Our Homeland Security Services segment generated $1.6 million during this period. Consolidated contract revenue decreased $2.9 million, or 8.1%, to $32.7 million for the six months ended July 3, 2009, from $35.6 million for the six months ended June 27, 2008. This was due primarily to a decrease of $3.1 million, or 11.1%, in contract revenue for the Engineering Services segment primarily as a result of the continuing decline in our building and safety projects which is directly and indirectly affected by the residential housing market. Contract revenue in the Public Finance Services segment decreased $0.6 million, or 9.0%, from $6.7 million to $6.1 million for the six months ended July 3, 2009 as compared to the six months ended June 27, 2008. Contract revenue for our Homeland Security Services segment increased $0.7 million, or 77.8%, from $0.9 million to $1.6 million for the six months ended July 3, 2009 as compared to the six months ended June 27, 2008.

Direct costs of contract revenue. Direct costs of contract revenue were $15.7 million for the six months ended July 3, 2009, with $13.2 million attributable to the Engineering Services segment and $1.7 million attributable to the Public Finance Services segment. The additional $0.8 million is attributable to direct costs of contract revenue for our Homeland Security Services segment. Direct costs of contract revenue for the Engineering Services segment for the six months ended July 3, 2009 includes $4.4 million relating to Willdan Energy Solutions. Overall, direct costs increased by $1.0 million, or 6.8%, to $15.7 million for the six months ended July 3, 2009, from $14.7 million for the six mo

Read the The complete Report

Rating: 3.8/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide