Mastech Holdings Q2 gross profit climbs to $5.5m
Revenues for the second quarter of 2015 totaled $29.3 million compared to $27.7 million during the corresponding quarter last year.
Gross profit in the second quarter of 2015 was $5.5 million, compared to $5.1 million in the second quarter of 2014. GAAP net income for the second quarter of 2015 totaled $382,000, compared to $893,000 during the same period last year.
Non-GAAP net income for the second quarter of 2015 was $801,000, compared to $947,000 in the second quarter of 2014. GAAP diluted earnings per share were $0.09 in the 2015 second quarter, compared to $0.20 in the second quarter of 2014. Non-GAAP diluted earnings per share were $0.18 in the second quarter of 2015, compared to $0.21 for the corresponding period in 2014.
From the June 15, 2015 acquisition date through the end of the quarter, the business we acquired from Hudson Global generated $1.3 million of revenues and approximately $0.1 million of GAAP and Non-GAAP net income.
Demand for the Company's staffing services was generally flat from the previous quarter and we achieved modest organic growth in our consultant-base during the quarter. Gross margins in the second quarter of 2015 were 18.8%, representing a significant increase from the previous quarter's 17.3% gross margin results, and were slightly better than those reported for the corresponding period in 2014.
Kevin Horner, Mastech's chief executive officer, stated, "I am excited about several key components of our second quarter performance. We were able to organically grow consultants on billing during the quarter our gross margins improved nicely from a quarter ago as we continued to take a disciplined approach with respect to profit content on new assignments and we successfully closed our acquisition of Hudson IT in mid-June. Hudson IT brings a retail client-base and a relationship selling model to Mastech which, when coupled with our centralized recruiting model, represents a real opportunity to accelerate growth in the second half of 2015."
Jack Cronin, Mastech's chief financial officer, stated, "With an agreement to expand and extend our credit facility with PNC Bank in place, we comfortably funded our $17 million acquisition of Hudson IT. At June 30, 2015 we had bank debt, net of cash balances on hand, of $13.4 million and had approximately $8.3 million of borrowing capacity available to us under our revolving credit line. Required principle payments on our outstanding borrowings over the next twelve months are a manageable $1.8 million."