Mastech Holdings reports Q1 2014 results
• 20% Year-Over-Year Revenue Growth from Continuing Operations
• 58% Year-Over-Year Increase in Operating Profits from Continuing Operations
• 54% Year-Over-Year Increase in Diluted Earnings Per Share from Continuing Operations
• 3% Sequential Increase in Consultants on Billing.
Revenues from continuing operations for the first quarter of 2014 totaled $28.7 million, which represented a 20% increase over the corresponding quarter last year. Gross profit from continuing operations in the first quarter of 2014 was $5.2 million compared to $4.4 million in the first quarter of 2013. Consolidated net income from continuing operations for the first quarter 2014 totaled $869,000 or $0.20 per diluted share, compared to $544,000 or $0.13 per diluted share, during the same period last year.
Demand for our IT staffing services was solid in the first quarter and largely in-line with activity levels of a quarter ago. Gross margins from continuing operations in the first quarter of 2014 were 18.2%, which equaled those reported a year earlier. Historically, gross margins in the first quarter are negatively impacted by higher payroll taxes and bench costs.
Kevin Horner, Mastech's Chief Executive Officer stated, "We are pleased to deliver strong year-over-year financial results in our traditionally challenging first quarter, as we were able to increase our billable consultant-base by approximately 3%. Operationally, we continue to strive for productivity gains in both our sales and recruitment organizations."
Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated, "Our financial position at March 31, 2014 remains strong, with short-term borrowings, net of cash balances on hand, of $1.1 million and over$15 million of available borrowing capacity under our existing credit facility. During the quarter we invested $2.6 million in operating working capital. This level of investment was in part due to an up-tick in our Days Sales Outstanding measurement during the quarter related to billing process changes at a major client. We are confident that DSO's will revert back to more normal levels in the second quarter of 2014."