Mastech Holdings, Inc. reports fourth quarter and full year 2014 results
Gross profit from continuing operations in the fourth quarter of 2014 was $5.2 million compared to $5.4 million in the fourth quarter of 2013. Consolidated net income from continuing operations for the fourth quarter 2014 totalled $782,000 or $0.18 per diluted share, compared to $961,000 or $0.22 per diluted share, during the same period last year.
While demand for the company's staffing services continues to be robust, supply-side pressures are impacting both attrition levels and consultant compensation increases. These pressures are impacting average assignment durations and are having some adverse effect on gross margins. Gross margins from continuing operations in the fourth quarter of 2014 were 18.3 per cent, which was in-line with third quarter 2014's performance, but below our gross margins reported a year earlier.
Commenting on the company's fourth quarter 2014 performance, Kevin Horner, Mastech's chief executive officer stated, "Despite strong performance in October and November, December proved to be an extremely challenging month in our fourth quarter. Weaker sales and recruiting activity levels, driven by the holiday season, combined with an abnormally high level of assignment ends, negatively impacted our billable consultant base. Historically we plan for a higher level of project ends at year-end. However, this year we faced a number of unexpected resignations and client hires, which reflects a tightening of supply in the marketplace. During the quarter, we tweaked our offshore leadership which will enhance the Company's prospects for future growth. Our expectations for 2015 are to achieve growth levels in excess of our industry average and to continue to invest in our business organically and by acquisition should an attractive opportunity arise."