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Mastech Holdings, Inc. Reports First Quarter 2013 Results

Mastech Holdings, Inc. Reports First Quarter 2013 Results

Mastech Holdings, Inc. has announced its financial results for the first quarter ended March 31, 2013.

First Quarter Results:

Revenues for the first quarter of 2013 totaled $27.0 million, which represented a 10% increase over the corresponding quarter last year and a 2% improvement over fourth quarter 2012 results. Gross profit in the first quarter of 2013 was $4.9 million compared to $4.5 million in the first quarter of 2012. Consolidated net income for the first quarter 2013 totaled $575,000 or $0.17 per diluted share, compared to $352,000 or $0.10 per diluted share, during the same period last year. It is important to note that the 2013 quarter had one less billable day than last year's corresponding quarter.

Demand for our IT staffing services was solid for much of the quarter. Market conditions in the healthcare staffing business were generally steady and we were able to achieve sequential revenue growth for the eleventh consecutive quarter. Overall gross margins in the first quarter of 2013 were 18.1%, which were slightly below gross margins of 18.2% reported a year earlier.

Kevin Horner, Mastech's Chief Executive Officer stated, "We are pleased with our operational performance and the financial results that we delivered in our historically challenging first quarter. We were able to increase our IT billable consultant-base during the quarter by over 4% and grew revenues in our healthcare segment despite seasonal headwinds in our surgical nursing business. Operationally, we continued to see improvements in our recruitment performance metrics and believe that these favorable trends will translate into elevated levels of client satisfaction."

Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated, "Our financial position at March 31, 2013 remains strong, with short-term borrowings, net of cash balances on hand, essentially unchanged from our year-end 2012 position of $2.0 million. Additionally, we had approximately $13.2 million of available borrowing capacity under our existing credit facility with PNC Bank. During the quarter, cash generated from operations was sufficient to fund our continued investment in operating working capital and the other cash needs of our business.

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