Mastech Holdings, Inc announced today its financial results for the fourth quarter and full year end
Mastech Holdings, Inc, a national provider of Information Technology and Specialized Healthcare staffing services, announced today its financial results for the fourth quarter and full year ended December 31, 2011.
Fourth Quarter Results:
Revenues for the quarter were $23.9 million and represented an 18% increase over the corresponding quarter last year and a 2% improvement over third quarter 2011 results. Gross margins in the 2011 quarter totaled 19.3% compared to 19.7% for the 2010 quarter. Consolidated net income for the fourth quarter 2011 totaled $253,000 or $0.07 per diluted share, compared to $304,000 or $0.08 per diluted share, in the same period last year. The 2011 fourth quarter results included severance expense equal to $0.05 per diluted share, related to the elimination of several executive positions during the quarter.
Demand for our IT staffing services remained solid during the fourth quarter when considering the normal year-end industry trends. Market conditions in healthcare staffing remained largely positive and we were able to achieve sequential revenue growth for the sixth consecutive quarter.
Full Year Results:
Revenue for the year totaled $89.4 million, or 24% higher than 2010 revenues of $71.8 million. Gross margins for the full year 2011 were 19.6% which was in-line with last year's gross margin performance. Consolidated net income for 2011 totaled $1.1 million or $0.30 per diluted share, compared to $663,000 or $0.18 per diluted share in 2010.
Kevin Horner, Mastech's Chief Executive Officer, stated, "We are pleased with the results that we delivered during the quarter and for the full year 2011. For the year, we organically grew our revenues and consultant-base by over 20%, increased profitability by approximately 67% and rationalized our management cost structure to better position us to continue to outperform our industry peers."
Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated, "Our balance sheet remains strong. We enter 2012 positioned with the financial flexibility to support our growth objectives and to capitalize on inorganic value creation opportunities. At December 31, 2011, cash on hand totaled $5.8 million we had no outstanding debt and have access to a credit facility with a maximum borrowing capacity of $19 million."