Hudson IT acquisition boosts Mastech’s revenue
Mastech Holdings, Inc. has announced its financial results for the fourth quarter and full year ended 31st December 2015.
Revenues for the fourth quarter of 2015 totalled $32.5m compared to $28.5m during the corresponding quarter last year. Gross profit in the fourth quarter of 2015 was $6.7m, compared to $5.2m in the fourth quarter of 2014. GAAP net income for the fourth quarter of 2015 totalled $1.3m, compared to $782,000 during the same period last year. Non-GAAP net income for the fourth quarter of 2015 was $1.4m, compared to $804,000 in the fourth quarter of 2014. GAAP diluted earnings per share were $0.29 in the 2015 fourth quarter, compared to $0.18 in the fourth quarter of 2014. Non-GAAP diluted earnings per share were $0.31 in the fourth quarter of 2015, compared to $0.18 for the corresponding period in 2014.
Commenting on the Company's 2015 fourth quarter, Kevin Horner, Mastech's chief executive officer, stated, "While our fourth quarter operating results and year-over-year comparables indicate that we have done an excellent acquisition in Hudson IT, I am disappointed with our performance in driving new starts during the fourth quarter. While our consultant-base decline did reflect a high level of assignment ends, we had ample opportunities on the starts side to mitigate this negative impact. As we enter 2016, our primary operational objective is to address these start issues and return the Company to a consistent growth trajectory with respect to our billable consultant base."
Revenues for the full year 2015 totalled $123.5m compared to $113.5m in 2014. The company’s top-line growth reflected its 15th June 2015 acquisition of Hudson IT. Gross profit for 2015 totalled $23.8m or 19.3% of total revenues, compared to $20.8m or 18.3% of total revenues in 2014. GAAP net income for 2015 totalled $2.8m or $0.62 per diluted share compared to $3.4m or $0.77 per diluted share in 2014. Non-GAAP net income for 2015 totalled $3.8m or $0.85 per diluted share compared to $3.6m or $0.81 per diluted share one year earlier.
Jack Cronin, Mastech's chief financial officer, commented, "At December 31, 2015 we had bank debt, net of cash balances on hand, of $11.7 million and had approximately $11 million of borrowing capacity available to us under our revolving credit line. During the quarter, net bank debt declined by $3.8 million. Additionally, our largest balance sheet asset, accounts receivable, remains of high quality with a "days sales outstanding" measurement of 53-days at year-end."