Mastech Holdings reports third quarter results
Mastech Holdings, Inc., a national provider of Information Technology staffing services, announced today its financial results for the third quarter ended September 30, 2013.
Revenues from continuing operations for the third quarter of 2013 totaled $28.3 million, which represented a 24% increase over the corresponding quarter last year and an 8% improvement over second quarter 2013 results. Gross profit from continuing operations in the third quarter of 2013 was $5.3 million compared to $4.4 million in the third quarter of 2012. Consolidated net income from continuing operations for the third quarter 2013 totaled $999,000 or $0.29 per diluted share, compared to $561,000 or $0.17 per diluted share, during the same period last year. Net income from discontinued operations totaled $481,000 in the third quarter of 2013 or $0.14 per diluted share and included a $442,000 gain on the sale of our healthcare business.
Demand for our IT staffing services was solid in the third quarter and largely in-line with activity levels of a quarter ago. Gross margins from continuing operations in the third quarter of 2013 were 18.9%, which were slightly below gross margins of 19.2% reported a year earlier. The slight margin decline was due to higher bench costs and the continued shift of revenues towards our wholesale sales channel.
"We are pleased to deliver financial results that include record earnings for the quarter, strong revenue growth and the expansion of our billable consultant-base,” said Kevin Horner, CEO. “These impressive financial achievements reflect our continued commitment to drive operational efficiencies and enhance our value proposition to the clients that we serve. Also during the quarter we completed the sale of our healthcare business which generated a net gain of $442,000 for the Company and more importantly allows us to focus squarely on our core competency – Information Technology Staffing Services."
Commenting on the Company's financial position, Jack Cronin, chief financial officer, stated, "Our financial position at September 30, 2013 remains strong, with cash on hand of $1.6 million and over $15 million of available borrowing capacity under our existing credit facility. During the quarter we repaid all outstanding bank debt with funds generated from continuing operations and from the sale of our healthcare business. Our debt-free balance sheet and access to sufficient capital gives us the flexibility to capitalize on future value-creation opportunities."