Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Willdan Group Reports First Quarter Results By: Willdan Group, Inc. via Business Wire May 02, 2024 at 16:08 PM EDT Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today reported financial results for its first quarter ended March 29, 2024. “We had an excellent first quarter,” said Mike Bieber, Willdan’s President and Chief Executive Officer. “Revenue, profitability, earnings, and cash flow were above expectations. We saw strength in both government and utility customers, plus strong software sales. The rapid growth in electricity demand from artificial intelligence and data centers is becoming a new catalyst in our market.” First Quarter 2024 Highlights* Consolidated contract revenue of $122.5 million, up 19.4%. Net revenue** of $68.9 million, up 11.7%. Net income of $2.9 million, up from net income of $0.9 million. Adjusted EBITDA** of $11.0 million, up 11.7%. GAAP Diluted EPS of $0.21, up from $0.07. Adjusted Diluted EPS** of $0.40, up from $0.32. Fiscal Year 2024 Financial Targets We are reaffirming our 2024 financial targets: Net revenue** between $270 million and $280 million. Adjusted Diluted EPS** between $1.80 per share and $1.87 per share. Adjusted EBITDA** between $48 million and $50 million. Assumes 14.2 million diluted shares, 25% effective tax rate, and no future acquisitions. *As compared to the same period of fiscal 2023. **See “Use of Non-GAAP Financial Measures” below. First Quarter 2024 Conference Call Willdan will be hosting a conference call to discuss its first quarter financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 877-407-2988 (or 201-389-0923) approximately five minutes prior to the scheduled start time. The conference call will be webcast simultaneously on Willdan’s website at https://edge.media-server.com/mmc/p/gf7u4cva. A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations. An Investor Report containing supplemental financial information can also be accessed through Willdan’s website at https://ir.willdangroup.com and selecting “Stock Information”. About Willdan Group, Inc. Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com. Use of Non-GAAP Financial Measures “Net Revenue,” defined as contract revenue as reported in accordance with U.S. generally accepted accounting principles (“GAAP”) minus subcontractor services and other direct costs, is a non-GAAP financial measure. Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with GAAP and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for fiscal year 2024 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs were 43.7% and 47.1% of contract revenue for the quarter ended March 29, 2024 and fiscal year 2023, respectively, and 39.9% and 47.2% for the quarter ended March 31, 2023 and fiscal year 2022, respectively. “Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital and stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release. A reconciliation of targeted net income for fiscal year 2024 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA. “Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, is a non-GAAP financial measure. “Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for fiscal year 2024, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for fiscal year 2024, which is a forward-looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively. Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS. Forward Looking Statements Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, assumptions, aims, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding financial targets for fiscal year 2024. All statements other than statements of historical fact included in this press release are forward-looking statements. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes; Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, rising interest rates, and rising inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; and Willdan’s ability to attract and retain managerial, technical, and administrative talent. All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 29, 2023, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law. WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) March 29, December 29, 2024 2023 Assets Current assets: Cash and cash equivalents $ 46,925 $ 23,397 Restricted cash — — Accounts receivable, net of allowance for doubtful accounts of $690 and $866 at March 29, 2024 and December 29, 2023, respectively 50,792 69,677 Contract assets 82,409 93,885 Other receivables 552 1,169 Prepaid expenses and other current assets 5,863 3,888 Total current assets 186,541 192,016 Equipment and leasehold improvements, net 27,539 27,097 Goodwill 131,144 131,144 Right-of-use assets 12,803 12,465 Other intangible assets, net 30,085 31,956 Other assets 4,832 4,949 Deferred income taxes, net 14,956 15,961 Total assets $ 407,900 $ 415,588 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 34,518 $ 33,193 Accrued liabilities 38,411 54,129 Contract liabilities 16,427 13,183 Notes payable 8,924 8,452 Finance lease obligations 1,111 1,186 Lease liability 4,677 4,537 Total current liabilities 104,068 114,680 Notes payable, less current portion 86,571 88,979 Finance lease obligations, less current portion 1,112 1,184 Lease liability, less current portion 9,948 9,758 Other noncurrent liabilities 686 1,142 Total liabilities 202,385 215,743 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value, 40,000 shares authorized; 13,817 and 13,682 shares issued and outstanding at March 29, 2024 and December 29, 2023, respectively 138 137 Additional paid-in capital 188,088 185,795 Accumulated other comprehensive loss (230 ) (664 ) Retained earnings 17,519 14,577 Total stockholders’ equity 205,515 199,845 Total liabilities and stockholders’ equity $ 407,900 $ 415,588 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share amounts) Three Months Ended March 29, March 31, 2024 2023 Contract revenue $ 122,489 $ 102,603 Direct costs of contract revenue (inclusive of directly related depreciation and amortization): Salaries and wages 21,512 20,410 Subcontractor services and other direct costs 53,559 40,912 Total direct costs of contract revenue 75,071 61,322 Gross profit 47,418 41,281 General and administrative expenses: Salaries and wages, payroll taxes and employee benefits 26,509 22,385 Facilities and facility related 2,445 2,278 Stock-based compensation 1,390 1,533 Depreciation and amortization 3,592 4,200 Other 8,121 6,871 Total general and administrative expenses 42,057 37,267 Income (Loss) from operations 5,361 4,014 Other income (expense): Interest expense, net (2,137 ) (2,466 ) Other, net 704 140 Total other expense, net (1,433 ) (2,326 ) Income (Loss) before income taxes 3,928 1,688 Income tax (benefit) expense 986 756 Net income (loss) 2,942 932 Other comprehensive income (loss): Unrealized gain (loss) on derivative contracts, net of tax 434 — Comprehensive income (loss) $ 3,376 $ 932 Earnings (Loss) per share: Basic $ 0.22 $ 0.07 Diluted $ 0.21 $ 0.07 Weighted-average shares outstanding: Basic 13,605 13,266 Diluted 13,910 13,470 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 29, March 31, 2024 2023 Cash flows from operating activities: Net income (loss) $ 2,942 $ 932 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 3,592 4,200 Other non-cash items 92 85 Deferred income taxes, net 1,005 782 (Gain) loss on sale/disposal of equipment (13 ) (10 ) Provision for doubtful accounts (100 ) 81 Stock-based compensation 1,390 1,533 Changes in operating assets and liabilities, net of effects from business acquisitions: Accounts receivable 18,985 8,204 Contract assets 11,476 7,819 Other receivables 617 (9 ) Prepaid expenses and other current assets (1,975 ) 1,023 Other assets 117 (3,532 ) Accounts payable 1,325 479 Accrued liabilities (15,740 ) (7,883 ) Contract liabilities 3,244 2,941 Right-of-use assets (8 ) 647 Net cash (used in) provided by operating activities 26,949 17,292 Cash flows from investing activities: Purchase of equipment, software, and leasehold improvements (1,971 ) (3,488 ) Proceeds from sale of equipment 19 13 Net cash (used in) provided by investing activities (1,952 ) (3,475 ) Cash flows from financing activities: Payment on restricted cash — (10,679 ) Payments on notes payable (153 ) (485 ) Repayments under term loan facility and line of credit (1,875 ) (5,250 ) Principal payments on finance leases (345 ) (303 ) Proceeds from stock option exercise 281 — Proceeds from sales of common stock under employee stock purchase plan 1,402 1,392 Cash used to pay taxes on stock grants (779 ) (124 ) Net cash (used in) provided by financing activities (1,469 ) (15,449 ) Net increase (decrease) in cash, cash equivalents and restricted cash 23,528 (1,632 ) Cash, cash equivalents and restricted cash at beginning of period 23,397 19,485 Cash, cash equivalents and restricted cash at end of period $ 46,925 $ 17,853 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 2,081 $ 2,424 Income taxes 2 (77 ) Supplemental disclosures of noncash investing and financing activities: Equipment acquired under finance leases 198 48 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Consolidated Contract revenue $ 122,489 $ 102,603 Subcontractor services and other direct costs 53,559 40,912 Net Revenue $ 68,930 $ 61,691 Energy segment Contract revenue $ 100,746 $ 83,285 Subcontractor services and other direct costs 52,654 40,078 Net Revenue $ 48,092 $ 43,207 Engineering and Consulting segment Contract revenue $ 21,743 $ 19,318 Subcontractor services and other direct costs 905 834 Net Revenue $ 20,838 $ 18,484 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Net income (loss) $ 2,942 $ 932 Interest expense 2,137 2,466 Income tax expense (benefit) 986 756 Stock-based compensation 1,390 1,533 Depreciation and amortization 3,592 4,200 (Gain) Loss on sale of equipment (13 ) (10 ) Adjusted EBITDA $ 11,034 $ 9,877 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share amounts) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Net income (loss) $ 2,942 $ 932 Adjustment for stock-based compensation 1,390 1,533 Tax effect of stock-based compensation (278 ) (310 ) Adjustment for intangible amortization 1,871 2,624 Tax effect of intangible amortization (374 ) (531 ) Adjusted Net Income (Loss) $ 5,551 $ 4,248 Diluted weighted-average shares outstanding 13,910 13,470 Diluted earnings (loss) per share $ 0.21 $ 0.07 Impact of adjustment: Stock-based compensation per share 0.10 0.12 Tax effect of stock-based compensation per share (0.02 ) (0.02 ) Intangible amortization per share 0.14 0.19 Tax effect of intangible amortization per share (0.03 ) (0.04 ) Adjusted Diluted EPS $ 0.40 $ 0.32 View source version on businesswire.com: https://www.businesswire.com/news/home/20240502270739/en/Contacts Willdan Group, Inc. Al Kaschalk Vice President Tel: 310-922-5643 akaschalk@willdan.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Willdan Group Reports First Quarter Results By: Willdan Group, Inc. via Business Wire May 02, 2024 at 16:08 PM EDT Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today reported financial results for its first quarter ended March 29, 2024. “We had an excellent first quarter,” said Mike Bieber, Willdan’s President and Chief Executive Officer. “Revenue, profitability, earnings, and cash flow were above expectations. We saw strength in both government and utility customers, plus strong software sales. The rapid growth in electricity demand from artificial intelligence and data centers is becoming a new catalyst in our market.” First Quarter 2024 Highlights* Consolidated contract revenue of $122.5 million, up 19.4%. Net revenue** of $68.9 million, up 11.7%. Net income of $2.9 million, up from net income of $0.9 million. Adjusted EBITDA** of $11.0 million, up 11.7%. GAAP Diluted EPS of $0.21, up from $0.07. Adjusted Diluted EPS** of $0.40, up from $0.32. Fiscal Year 2024 Financial Targets We are reaffirming our 2024 financial targets: Net revenue** between $270 million and $280 million. Adjusted Diluted EPS** between $1.80 per share and $1.87 per share. Adjusted EBITDA** between $48 million and $50 million. Assumes 14.2 million diluted shares, 25% effective tax rate, and no future acquisitions. *As compared to the same period of fiscal 2023. **See “Use of Non-GAAP Financial Measures” below. First Quarter 2024 Conference Call Willdan will be hosting a conference call to discuss its first quarter financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 877-407-2988 (or 201-389-0923) approximately five minutes prior to the scheduled start time. The conference call will be webcast simultaneously on Willdan’s website at https://edge.media-server.com/mmc/p/gf7u4cva. A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations. An Investor Report containing supplemental financial information can also be accessed through Willdan’s website at https://ir.willdangroup.com and selecting “Stock Information”. About Willdan Group, Inc. Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com. Use of Non-GAAP Financial Measures “Net Revenue,” defined as contract revenue as reported in accordance with U.S. generally accepted accounting principles (“GAAP”) minus subcontractor services and other direct costs, is a non-GAAP financial measure. Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with GAAP and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for fiscal year 2024 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs were 43.7% and 47.1% of contract revenue for the quarter ended March 29, 2024 and fiscal year 2023, respectively, and 39.9% and 47.2% for the quarter ended March 31, 2023 and fiscal year 2022, respectively. “Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital and stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release. A reconciliation of targeted net income for fiscal year 2024 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA. “Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, is a non-GAAP financial measure. “Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for fiscal year 2024, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for fiscal year 2024, which is a forward-looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively. Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS. Forward Looking Statements Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, assumptions, aims, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding financial targets for fiscal year 2024. All statements other than statements of historical fact included in this press release are forward-looking statements. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes; Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, rising interest rates, and rising inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; and Willdan’s ability to attract and retain managerial, technical, and administrative talent. All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 29, 2023, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law. WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) March 29, December 29, 2024 2023 Assets Current assets: Cash and cash equivalents $ 46,925 $ 23,397 Restricted cash — — Accounts receivable, net of allowance for doubtful accounts of $690 and $866 at March 29, 2024 and December 29, 2023, respectively 50,792 69,677 Contract assets 82,409 93,885 Other receivables 552 1,169 Prepaid expenses and other current assets 5,863 3,888 Total current assets 186,541 192,016 Equipment and leasehold improvements, net 27,539 27,097 Goodwill 131,144 131,144 Right-of-use assets 12,803 12,465 Other intangible assets, net 30,085 31,956 Other assets 4,832 4,949 Deferred income taxes, net 14,956 15,961 Total assets $ 407,900 $ 415,588 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 34,518 $ 33,193 Accrued liabilities 38,411 54,129 Contract liabilities 16,427 13,183 Notes payable 8,924 8,452 Finance lease obligations 1,111 1,186 Lease liability 4,677 4,537 Total current liabilities 104,068 114,680 Notes payable, less current portion 86,571 88,979 Finance lease obligations, less current portion 1,112 1,184 Lease liability, less current portion 9,948 9,758 Other noncurrent liabilities 686 1,142 Total liabilities 202,385 215,743 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value, 40,000 shares authorized; 13,817 and 13,682 shares issued and outstanding at March 29, 2024 and December 29, 2023, respectively 138 137 Additional paid-in capital 188,088 185,795 Accumulated other comprehensive loss (230 ) (664 ) Retained earnings 17,519 14,577 Total stockholders’ equity 205,515 199,845 Total liabilities and stockholders’ equity $ 407,900 $ 415,588 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share amounts) Three Months Ended March 29, March 31, 2024 2023 Contract revenue $ 122,489 $ 102,603 Direct costs of contract revenue (inclusive of directly related depreciation and amortization): Salaries and wages 21,512 20,410 Subcontractor services and other direct costs 53,559 40,912 Total direct costs of contract revenue 75,071 61,322 Gross profit 47,418 41,281 General and administrative expenses: Salaries and wages, payroll taxes and employee benefits 26,509 22,385 Facilities and facility related 2,445 2,278 Stock-based compensation 1,390 1,533 Depreciation and amortization 3,592 4,200 Other 8,121 6,871 Total general and administrative expenses 42,057 37,267 Income (Loss) from operations 5,361 4,014 Other income (expense): Interest expense, net (2,137 ) (2,466 ) Other, net 704 140 Total other expense, net (1,433 ) (2,326 ) Income (Loss) before income taxes 3,928 1,688 Income tax (benefit) expense 986 756 Net income (loss) 2,942 932 Other comprehensive income (loss): Unrealized gain (loss) on derivative contracts, net of tax 434 — Comprehensive income (loss) $ 3,376 $ 932 Earnings (Loss) per share: Basic $ 0.22 $ 0.07 Diluted $ 0.21 $ 0.07 Weighted-average shares outstanding: Basic 13,605 13,266 Diluted 13,910 13,470 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 29, March 31, 2024 2023 Cash flows from operating activities: Net income (loss) $ 2,942 $ 932 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 3,592 4,200 Other non-cash items 92 85 Deferred income taxes, net 1,005 782 (Gain) loss on sale/disposal of equipment (13 ) (10 ) Provision for doubtful accounts (100 ) 81 Stock-based compensation 1,390 1,533 Changes in operating assets and liabilities, net of effects from business acquisitions: Accounts receivable 18,985 8,204 Contract assets 11,476 7,819 Other receivables 617 (9 ) Prepaid expenses and other current assets (1,975 ) 1,023 Other assets 117 (3,532 ) Accounts payable 1,325 479 Accrued liabilities (15,740 ) (7,883 ) Contract liabilities 3,244 2,941 Right-of-use assets (8 ) 647 Net cash (used in) provided by operating activities 26,949 17,292 Cash flows from investing activities: Purchase of equipment, software, and leasehold improvements (1,971 ) (3,488 ) Proceeds from sale of equipment 19 13 Net cash (used in) provided by investing activities (1,952 ) (3,475 ) Cash flows from financing activities: Payment on restricted cash — (10,679 ) Payments on notes payable (153 ) (485 ) Repayments under term loan facility and line of credit (1,875 ) (5,250 ) Principal payments on finance leases (345 ) (303 ) Proceeds from stock option exercise 281 — Proceeds from sales of common stock under employee stock purchase plan 1,402 1,392 Cash used to pay taxes on stock grants (779 ) (124 ) Net cash (used in) provided by financing activities (1,469 ) (15,449 ) Net increase (decrease) in cash, cash equivalents and restricted cash 23,528 (1,632 ) Cash, cash equivalents and restricted cash at beginning of period 23,397 19,485 Cash, cash equivalents and restricted cash at end of period $ 46,925 $ 17,853 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 2,081 $ 2,424 Income taxes 2 (77 ) Supplemental disclosures of noncash investing and financing activities: Equipment acquired under finance leases 198 48 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Consolidated Contract revenue $ 122,489 $ 102,603 Subcontractor services and other direct costs 53,559 40,912 Net Revenue $ 68,930 $ 61,691 Energy segment Contract revenue $ 100,746 $ 83,285 Subcontractor services and other direct costs 52,654 40,078 Net Revenue $ 48,092 $ 43,207 Engineering and Consulting segment Contract revenue $ 21,743 $ 19,318 Subcontractor services and other direct costs 905 834 Net Revenue $ 20,838 $ 18,484 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Net income (loss) $ 2,942 $ 932 Interest expense 2,137 2,466 Income tax expense (benefit) 986 756 Stock-based compensation 1,390 1,533 Depreciation and amortization 3,592 4,200 (Gain) Loss on sale of equipment (13 ) (10 ) Adjusted EBITDA $ 11,034 $ 9,877 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share amounts) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Net income (loss) $ 2,942 $ 932 Adjustment for stock-based compensation 1,390 1,533 Tax effect of stock-based compensation (278 ) (310 ) Adjustment for intangible amortization 1,871 2,624 Tax effect of intangible amortization (374 ) (531 ) Adjusted Net Income (Loss) $ 5,551 $ 4,248 Diluted weighted-average shares outstanding 13,910 13,470 Diluted earnings (loss) per share $ 0.21 $ 0.07 Impact of adjustment: Stock-based compensation per share 0.10 0.12 Tax effect of stock-based compensation per share (0.02 ) (0.02 ) Intangible amortization per share 0.14 0.19 Tax effect of intangible amortization per share (0.03 ) (0.04 ) Adjusted Diluted EPS $ 0.40 $ 0.32 View source version on businesswire.com: https://www.businesswire.com/news/home/20240502270739/en/Contacts Willdan Group, Inc. Al Kaschalk Vice President Tel: 310-922-5643 akaschalk@willdan.com
Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today reported financial results for its first quarter ended March 29, 2024. “We had an excellent first quarter,” said Mike Bieber, Willdan’s President and Chief Executive Officer. “Revenue, profitability, earnings, and cash flow were above expectations. We saw strength in both government and utility customers, plus strong software sales. The rapid growth in electricity demand from artificial intelligence and data centers is becoming a new catalyst in our market.” First Quarter 2024 Highlights* Consolidated contract revenue of $122.5 million, up 19.4%. Net revenue** of $68.9 million, up 11.7%. Net income of $2.9 million, up from net income of $0.9 million. Adjusted EBITDA** of $11.0 million, up 11.7%. GAAP Diluted EPS of $0.21, up from $0.07. Adjusted Diluted EPS** of $0.40, up from $0.32. Fiscal Year 2024 Financial Targets We are reaffirming our 2024 financial targets: Net revenue** between $270 million and $280 million. Adjusted Diluted EPS** between $1.80 per share and $1.87 per share. Adjusted EBITDA** between $48 million and $50 million. Assumes 14.2 million diluted shares, 25% effective tax rate, and no future acquisitions. *As compared to the same period of fiscal 2023. **See “Use of Non-GAAP Financial Measures” below. First Quarter 2024 Conference Call Willdan will be hosting a conference call to discuss its first quarter financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 877-407-2988 (or 201-389-0923) approximately five minutes prior to the scheduled start time. The conference call will be webcast simultaneously on Willdan’s website at https://edge.media-server.com/mmc/p/gf7u4cva. A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations. An Investor Report containing supplemental financial information can also be accessed through Willdan’s website at https://ir.willdangroup.com and selecting “Stock Information”. About Willdan Group, Inc. Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com. Use of Non-GAAP Financial Measures “Net Revenue,” defined as contract revenue as reported in accordance with U.S. generally accepted accounting principles (“GAAP”) minus subcontractor services and other direct costs, is a non-GAAP financial measure. Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with GAAP and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for fiscal year 2024 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs were 43.7% and 47.1% of contract revenue for the quarter ended March 29, 2024 and fiscal year 2023, respectively, and 39.9% and 47.2% for the quarter ended March 31, 2023 and fiscal year 2022, respectively. “Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital and stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release. A reconciliation of targeted net income for fiscal year 2024 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2024, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA. “Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, is a non-GAAP financial measure. “Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, refinancing costs, and tax benefit distribution, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for fiscal year 2024, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for fiscal year 2024, which is a forward-looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively. Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS. Forward Looking Statements Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, assumptions, aims, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding financial targets for fiscal year 2024. All statements other than statements of historical fact included in this press release are forward-looking statements. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes; Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, rising interest rates, and rising inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; and Willdan’s ability to attract and retain managerial, technical, and administrative talent. All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 29, 2023, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law. WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) March 29, December 29, 2024 2023 Assets Current assets: Cash and cash equivalents $ 46,925 $ 23,397 Restricted cash — — Accounts receivable, net of allowance for doubtful accounts of $690 and $866 at March 29, 2024 and December 29, 2023, respectively 50,792 69,677 Contract assets 82,409 93,885 Other receivables 552 1,169 Prepaid expenses and other current assets 5,863 3,888 Total current assets 186,541 192,016 Equipment and leasehold improvements, net 27,539 27,097 Goodwill 131,144 131,144 Right-of-use assets 12,803 12,465 Other intangible assets, net 30,085 31,956 Other assets 4,832 4,949 Deferred income taxes, net 14,956 15,961 Total assets $ 407,900 $ 415,588 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 34,518 $ 33,193 Accrued liabilities 38,411 54,129 Contract liabilities 16,427 13,183 Notes payable 8,924 8,452 Finance lease obligations 1,111 1,186 Lease liability 4,677 4,537 Total current liabilities 104,068 114,680 Notes payable, less current portion 86,571 88,979 Finance lease obligations, less current portion 1,112 1,184 Lease liability, less current portion 9,948 9,758 Other noncurrent liabilities 686 1,142 Total liabilities 202,385 215,743 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value, 40,000 shares authorized; 13,817 and 13,682 shares issued and outstanding at March 29, 2024 and December 29, 2023, respectively 138 137 Additional paid-in capital 188,088 185,795 Accumulated other comprehensive loss (230 ) (664 ) Retained earnings 17,519 14,577 Total stockholders’ equity 205,515 199,845 Total liabilities and stockholders’ equity $ 407,900 $ 415,588 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share amounts) Three Months Ended March 29, March 31, 2024 2023 Contract revenue $ 122,489 $ 102,603 Direct costs of contract revenue (inclusive of directly related depreciation and amortization): Salaries and wages 21,512 20,410 Subcontractor services and other direct costs 53,559 40,912 Total direct costs of contract revenue 75,071 61,322 Gross profit 47,418 41,281 General and administrative expenses: Salaries and wages, payroll taxes and employee benefits 26,509 22,385 Facilities and facility related 2,445 2,278 Stock-based compensation 1,390 1,533 Depreciation and amortization 3,592 4,200 Other 8,121 6,871 Total general and administrative expenses 42,057 37,267 Income (Loss) from operations 5,361 4,014 Other income (expense): Interest expense, net (2,137 ) (2,466 ) Other, net 704 140 Total other expense, net (1,433 ) (2,326 ) Income (Loss) before income taxes 3,928 1,688 Income tax (benefit) expense 986 756 Net income (loss) 2,942 932 Other comprehensive income (loss): Unrealized gain (loss) on derivative contracts, net of tax 434 — Comprehensive income (loss) $ 3,376 $ 932 Earnings (Loss) per share: Basic $ 0.22 $ 0.07 Diluted $ 0.21 $ 0.07 Weighted-average shares outstanding: Basic 13,605 13,266 Diluted 13,910 13,470 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 29, March 31, 2024 2023 Cash flows from operating activities: Net income (loss) $ 2,942 $ 932 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 3,592 4,200 Other non-cash items 92 85 Deferred income taxes, net 1,005 782 (Gain) loss on sale/disposal of equipment (13 ) (10 ) Provision for doubtful accounts (100 ) 81 Stock-based compensation 1,390 1,533 Changes in operating assets and liabilities, net of effects from business acquisitions: Accounts receivable 18,985 8,204 Contract assets 11,476 7,819 Other receivables 617 (9 ) Prepaid expenses and other current assets (1,975 ) 1,023 Other assets 117 (3,532 ) Accounts payable 1,325 479 Accrued liabilities (15,740 ) (7,883 ) Contract liabilities 3,244 2,941 Right-of-use assets (8 ) 647 Net cash (used in) provided by operating activities 26,949 17,292 Cash flows from investing activities: Purchase of equipment, software, and leasehold improvements (1,971 ) (3,488 ) Proceeds from sale of equipment 19 13 Net cash (used in) provided by investing activities (1,952 ) (3,475 ) Cash flows from financing activities: Payment on restricted cash — (10,679 ) Payments on notes payable (153 ) (485 ) Repayments under term loan facility and line of credit (1,875 ) (5,250 ) Principal payments on finance leases (345 ) (303 ) Proceeds from stock option exercise 281 — Proceeds from sales of common stock under employee stock purchase plan 1,402 1,392 Cash used to pay taxes on stock grants (779 ) (124 ) Net cash (used in) provided by financing activities (1,469 ) (15,449 ) Net increase (decrease) in cash, cash equivalents and restricted cash 23,528 (1,632 ) Cash, cash equivalents and restricted cash at beginning of period 23,397 19,485 Cash, cash equivalents and restricted cash at end of period $ 46,925 $ 17,853 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 2,081 $ 2,424 Income taxes 2 (77 ) Supplemental disclosures of noncash investing and financing activities: Equipment acquired under finance leases 198 48 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Consolidated Contract revenue $ 122,489 $ 102,603 Subcontractor services and other direct costs 53,559 40,912 Net Revenue $ 68,930 $ 61,691 Energy segment Contract revenue $ 100,746 $ 83,285 Subcontractor services and other direct costs 52,654 40,078 Net Revenue $ 48,092 $ 43,207 Engineering and Consulting segment Contract revenue $ 21,743 $ 19,318 Subcontractor services and other direct costs 905 834 Net Revenue $ 20,838 $ 18,484 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Net income (loss) $ 2,942 $ 932 Interest expense 2,137 2,466 Income tax expense (benefit) 986 756 Stock-based compensation 1,390 1,533 Depreciation and amortization 3,592 4,200 (Gain) Loss on sale of equipment (13 ) (10 ) Adjusted EBITDA $ 11,034 $ 9,877 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share amounts) (Non-GAAP Measure) Three Months Ended March 29, March 31, 2024 2023 Net income (loss) $ 2,942 $ 932 Adjustment for stock-based compensation 1,390 1,533 Tax effect of stock-based compensation (278 ) (310 ) Adjustment for intangible amortization 1,871 2,624 Tax effect of intangible amortization (374 ) (531 ) Adjusted Net Income (Loss) $ 5,551 $ 4,248 Diluted weighted-average shares outstanding 13,910 13,470 Diluted earnings (loss) per share $ 0.21 $ 0.07 Impact of adjustment: Stock-based compensation per share 0.10 0.12 Tax effect of stock-based compensation per share (0.02 ) (0.02 ) Intangible amortization per share 0.14 0.19 Tax effect of intangible amortization per share (0.03 ) (0.04 ) Adjusted Diluted EPS $ 0.40 $ 0.32 View source version on businesswire.com: https://www.businesswire.com/news/home/20240502270739/en/