Mastech Holdings, Inc. has announced its financial results for the third quarter ended September 30,
Mastech Holdings, Inc. , 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.