Willdan Group Reports Fourth Quarter/Full Year 2023 Results and Provides 2024 Outlook

Published

ANAHEIM, Calif.--(BUSINESS WIRE)-- Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today reported financial results for its fourth quarter and fiscal year ended December 29, 2023 and outlook for 2024.

“We had an exceptional fourth quarter,” said Mike Bieber, Willdan’s President and Chief Executive Officer. “Revenue, profitability and cash flow were above our expectations, aided by end of year program expansions. Strong performance throughout Willdan capped a record year and positions us for an outstanding 2024.”

Fourth Quarter 2023 Highlights*

  • Consolidated contract revenue of $155.7 million, up 37.5%.
  • Net revenue** of $80.8 million, up 25.1%.
  • Net income of $8.0 million, up from net loss of $(0.4) million.
  • Adjusted EBITDA** of $17.5 million, up 48.2%.
  • GAAP Diluted EPS of $0.58, up from $(0.03).
  • Adjusted Diluted EPS** of $0.80, up from $0.36.

Fiscal Year 2023 Highlights*

  • Consolidated contract revenue of $510.1 million, up 18.9%.
  • Net revenue** of $269.7 million, up 19.0%.
  • Net income of $10.9 million, up from net loss of $(8.4) million.
  • Adjusted EBITDA** of $45.7 million, up 96.3%.
  • GAAP Diluted EPS of $0.80, up from $(0.65).
  • Adjusted Diluted EPS** of $1.75, up from $0.88.

Fiscal Year 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 2022.

**See “Use of Non-GAAP Financial Measures” below.

Fourth Quarter 2023 Conference Call

Willdan will be hosting a conference call to discuss its fourth quarter and full fiscal year 2023 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/7gbp5syv.

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 the 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 48.1% and 47.1% of contract revenue for the quarter ended December 29, 2023 and fiscal year 2023, respectively, and 43.0% and 47.2% for the quarter ended December 30, 2022 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 the 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 Willdan’s ability to capitalize on increased energy efficiency spending in large markets and expected benefits from its acquisitions. 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

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

 

 

 

 

 

 

 

 

 

December 29,

 

December 30,

 

 

2023

 

2022

Assets

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

23,397

 

 

$

8,806

Restricted cash

 

 

 

 

 

10,679

 

Accounts receivable, net of allowance for doubtful accounts of $866 and $640 at December 29, 2023 and December 30, 2022, respectively

 

 

69,677

 

 

 

60,202

 

Contract assets

 

 

93,885

 

 

 

83,060

 

Other receivables

 

 

1,169

 

 

 

4,773

 

Prepaid expenses and other current assets

 

 

3,888

 

 

 

6,454

 

Total current assets

 

 

192,016

 

 

 

173,974

 

Equipment and leasehold improvements, net

 

 

27,097

 

 

 

22,537

 

Goodwill

 

 

131,144

 

 

 

130,124

 

Right-of-use assets

 

 

12,465

 

 

 

12,390

 

Other intangible assets, net

 

 

31,956

 

 

 

41,486

 

Other assets

 

 

4,949

 

 

 

10,620

 

Deferred income taxes, net

 

 

15,961

 

 

 

18,543

 

Total assets

 

$

415,588

 

 

$

409,674

 

Liabilities and Stockholders’ Equity

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

33,193

 

 

$

28,833

 

Accrued liabilities

 

 

54,129

 

 

 

59,110

 

Contingent consideration payable

 

 

 

 

 

4,000

 

Contract liabilities

 

 

13,183

 

 

 

12,585

 

Notes payable

 

 

8,452

 

 

 

16,903

 

Finance lease obligations

 

 

1,186

 

 

 

1,113

 

Lease liability

 

 

4,537

 

 

 

4,625

 

Total current liabilities

 

 

114,680

 

 

 

127,169

 

Notes payable

 

 

88,979

 

 

 

90,544

 

Finance lease obligations, less current portion

 

 

1,184

 

 

 

1,601

 

Lease liability, less current portion

 

 

9,758

 

 

 

8,599

 

Other noncurrent liabilities

 

 

1,142

 

 

 

259

 

Total liabilities

 

 

215,743

 

 

 

228,172

 

 

 

 

 

 

 

 

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; 13,682 and 13,296 shares issued and outstanding at December 29, 2023 and December 30, 2022, respectively

 

 

137

 

 

 

133

 

Additional paid-in capital

 

 

185,795

 

 

 

177,718

 

Accumulated other comprehensive loss

 

 

(664

)

 

 

 

Retained earnings

 

 

14,577

 

 

 

3,651

 

Total stockholders’ equity

 

 

199,845

 

 

 

181,502

 

Total liabilities and stockholders’ equity

 

$

415,588

 

 

$

409,674

 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 29,

 

December 30,

 

December 29,

 

December 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

155,677

 

 

$

113,256

 

 

$

510,095

 

 

$

429,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of contract revenue (inclusive of directly related depreciation and amortization):

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

26,347

 

 

 

21,458

 

 

 

89,915

 

 

 

82,972

 

Subcontractor services and other direct costs

 

 

74,905

 

 

 

48,691

 

 

 

240,413

 

 

 

202,587

 

Total direct costs of contract revenue

 

 

101,252

 

 

 

70,149

 

 

 

330,328

 

 

 

285,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

54,425

 

 

 

43,107

 

 

 

179,767

 

 

 

143,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages, payroll taxes and employee benefits

 

 

26,950

 

 

 

21,632

 

 

 

95,556

 

 

 

81,801

 

Facilities and facility related

 

 

2,365

 

 

 

2,288

 

 

 

9,565

 

 

 

9,287

 

Stock-based compensation

 

 

1,259

 

 

 

1,747

 

 

 

5,323

 

 

 

8,373

 

Depreciation and amortization

 

 

3,913

 

 

 

4,249

 

 

 

16,431

 

 

 

17,489

 

Other

 

 

8,189

 

 

 

8,593

 

 

 

30,818

 

 

 

33,692

 

Total general and administrative expenses

 

 

42,676

 

 

 

38,509

 

 

 

157,693

 

 

 

150,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from operations

 

 

11,749

 

 

 

4,598

 

 

 

22,074

 

 

 

(7,063

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(2,303

)

 

 

(2,112

)

 

 

(9,413

)

 

 

(5,328

)

Other, net

 

 

538

 

 

 

(327

)

 

 

1,930

 

 

 

939

 

Total other expense, net

 

 

(1,765

)

 

 

(2,439

)

 

 

(7,483

)

 

 

(4,389

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before income taxes

 

 

9,984

 

 

 

2,159

 

 

 

14,591

 

 

 

(11,452

)

Income tax (benefit) expense

 

 

1,953

 

 

 

2,584

 

 

 

3,665

 

 

 

(3,004

)

Net income (loss)

 

 

8,031

 

 

 

(425

)

 

 

10,926

 

 

 

(8,448

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative contracts, net of tax

 

 

(664

)

 

 

 

 

 

(664

)

 

 

38

 

Comprehensive income (loss)

 

$

7,367

 

 

$

(425

)

 

$

10,262

 

 

$

(8,410

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.59

 

 

$

(0.03

)

 

$

0.82

 

 

$

(0.65

)

Diluted

 

$

0.58

 

 

$

(0.03

)

 

$

0.80

 

 

$

(0.65

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,503

 

 

 

13,138

 

 

 

13,394

 

 

 

13,013

 

Diluted

 

 

13,731

 

 

 

13,138

 

 

 

13,606

 

 

 

13,013

 

WILLDAN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

 

 

Year Ended

 

 

December 29,

 

December 30,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

10,926

 

 

$

(8,448

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

16,431

 

 

 

17,489

 

Deferred income taxes, net

 

 

2,582

 

 

 

(1,694

)

(Gain) loss on sale/disposal of equipment

 

 

(63

)

 

 

(64

)

Provision for doubtful accounts

 

 

825

 

 

 

243

 

Stock-based compensation

 

 

5,323

 

 

 

8,373

 

Accretion and fair value adjustments of contingent consideration

 

 

 

 

 

3,168

 

Changes in operating assets and liabilities, net of effects from business acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

(10,300

)

 

 

6,766

 

Contract assets

 

 

(10,825

)

 

 

(23,772

)

Other receivables

 

 

3,604

 

 

 

1,494

 

Prepaid expenses and other current assets

 

 

3,170

 

 

 

(1,230

)

Other assets

 

 

5,671

 

 

 

3,223

 

Accounts payable

 

 

4,360

 

 

 

(7,839

)

Accrued liabilities

 

 

5,917

 

 

 

12,970

 

Contract liabilities

 

 

598

 

 

 

(914

)

Right-of-use assets

 

 

995

 

 

 

(332

)

Net cash (used in) provided by operating activities

 

 

39,214

 

 

 

9,433

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of equipment, software, and leasehold improvements

 

 

(9,925

)

 

 

(9,602

)

Proceeds from sale of equipment

 

 

68

 

 

 

75

 

Cash paid for acquisitions, net of cash acquired

 

 

(1,600

)

 

 

 

Net cash (used in) provided by investing activities

 

 

(11,457

)

 

 

(9,527

)

Cash flows from financing activities:

 

 

 

 

 

 

Payments on contingent consideration

 

 

(4,000

)

 

 

(10,206

)

Receipt of restricted cash

 

 

 

 

 

10,679

 

Payment on restricted cash

 

 

(10,679

)

 

 

 

Payments on notes payable

 

 

(1,631

)

 

 

(1,920

)

Payments on debt issuance costs

 

 

(1,114

)

 

 

(177

)

Proceeds from notes payable

 

 

 

 

 

1,718

 

Borrowings under term loan facility and line of credit

 

 

105,000

 

 

 

20,000

 

Repayments under term loan facility and line of credit

 

 

(112,875

)

 

 

(13,000

)

Principal payments on finance leases

 

 

(1,304

)

 

 

(1,054

)

Proceeds from stock option exercise

 

 

182

 

 

 

274

 

Proceeds from sales of common stock under employee stock purchase plan

 

 

2,781

 

 

 

3,036

 

Cash used to pay taxes on stock grants

 

 

(205

)

 

 

(992

)

Net cash (used in) provided by financing activities

 

 

(23,845

)

 

 

8,358

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

3,912

 

 

 

8,264

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

19,485

 

 

 

11,221

 

Cash, cash equivalents and restricted cash at end of period

 

$

23,397

 

 

$

19,485

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Cash paid (received) during the period for:

 

 

 

 

 

 

Interest

 

$

10,193

 

 

$

5,066

 

Income taxes

 

 

(3,072

)

 

 

(1,120

)

Supplemental disclosures of noncash investing and financing activities:

 

 

 

 

 

 

Equipment acquired under finance leases

 

 

961

 

 

 

2,451

 

Willdan Group, Inc. and Subsidiaries

Reconciliation of GAAP Revenue to Net Revenue

(in thousands)

(Non-GAAP Measure)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 29,

 

December 30,

 

December 29,

 

December 30,

 

 

2023

 

2022

 

2023

 

2022

Consolidated

 

 

 

 

 

 

 

 

Contract revenue

 

$

155,677

 

$

113,256

 

$

510,095

 

$

429,138

Subcontractor services and other direct costs

 

 

74,905

 

 

48,691

 

 

240,413

 

 

202,587

Net Revenue

 

$

80,772

 

$

64,565

 

$

269,682

 

$

226,551

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy segment

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

134,646

 

$

95,274

 

$

426,976

 

$

357,460

Subcontractor services and other direct costs

 

 

74,046

 

 

48,020

 

 

236,603

 

 

199,465

Net Revenue

 

$

60,600

 

$

47,254

 

$

190,373

 

$

157,995

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineering and Consulting segment

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

21,031

 

$

17,982

 

$

83,119

 

$

71,678

Subcontractor services and other direct costs

 

 

859

 

 

671

 

 

3,810

 

 

3,122

Net Revenue

 

$

20,172

 

$

17,311

 

$

79,309

 

$

68,556

Willdan Group, Inc. and Subsidiaries

Reconciliation of GAAP Net Income to Adjusted EBITDA

(in thousands)

(Non-GAAP Measure)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 29,

 

December 30,

 

December 29,

 

December 30,

 

 

2023

 

2022

 

2023

 

2022

Net income (loss)

 

$

8,031

 

$

(425

)

 

$

10,926

 

 

$

(8,448

)

Interest expense

 

 

2,303

 

 

 

2,112

 

 

 

9,413

 

 

 

5,328

 

Income tax expense (benefit)

 

 

1,953

 

 

 

2,584

 

 

 

3,665

 

 

 

(3,004

)

Stock-based compensation

 

 

1,259

 

 

 

1,747

 

 

 

5,323

 

 

 

8,373

 

Interest accretion(1)

 

 

 

 

 

1,509

 

 

 

 

 

 

3,168

 

Depreciation and amortization

 

 

3,913

 

 

 

4,249

 

 

 

16,431

 

 

 

17,489

 

(Gain) Loss on sale of equipment

 

 

 

 

 

3

 

 

 

(63

)

 

 

(64

)

Tax benefit distribution

 

 

 

 

 

 

 

 

 

 

 

434

 

Adjusted EBITDA

 

$

17,459

 

 

$

11,779

 

 

$

45,695

 

 

$

23,276

 

_______________

(1)

Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration.

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

 

Year Ended

 

 

December 29,

 

December 30,

 

December 29,

 

December 30,

 

 

2023

 

2022

 

2023

 

2022

Net income (loss)

 

$

8,031

 

 

$

(425

)

 

$

10,926

 

 

$

(8,448

)

Adjustment for stock-based compensation

 

 

1,259

 

 

 

1,747

 

 

 

5,323

 

 

 

8,373

 

Tax effect of stock-based compensation

 

 

(237

)

 

 

(249

)

 

 

(1,003

)

 

 

(1,194

)

Adjustment for intangible amortization

 

 

2,199

 

 

 

2,697

 

 

 

10,109

 

 

 

11,228

 

Tax effect of intangible amortization

 

 

(414

)

 

 

(385

)

 

 

(1,905

)

 

 

(1,601

)

Adjustment for interest accretion

 

 

 

 

 

1,509

 

 

 

 

 

 

3,168

 

Tax effect of interest accretion

 

 

 

 

 

(215

)

 

 

 

 

 

(452

)

Adjustment for refinancing costs

 

 

 

 

 

 

 

 

467

 

 

 

 

Tax effect of refinancing costs

 

 

 

 

 

 

 

 

(88

)

 

 

 

Adjustment for tax benefit distribution

 

 

 

 

 

 

 

 

 

 

 

434

 

Tax effect of tax benefit distribution

 

 

 

 

 

 

 

 

 

 

 

(62

)

Adjusted Net Income (Loss)

 

$

10,837

 

 

$

4,679

 

 

$

23,830

 

 

$

11,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted-average shares outstanding

 

 

13,731

 

 

 

13,138

 

 

 

13,606

 

 

 

13,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

$

0.58

 

 

$

(0.03

)

 

$

0.80

 

 

$

(0.65

)

Impact of adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation per share

 

 

0.09

 

 

 

0.13

 

 

 

0.39

 

 

 

0.64

 

Tax effect of stock-based compensation per share

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.07

)

 

 

(0.09

)

Intangible amortization per share

 

 

0.16

 

 

 

0.21

 

 

 

0.74

 

 

 

0.86

 

Tax effect of intangible amortization per share

 

 

(0.02

)

 

 

(0.03

)

 

 

(0.14

)

 

 

(0.12

)

Interest accretion per share

 

 

 

 

 

0.12

 

 

 

 

 

 

0.24

 

Tax effect of interest accretion per share

 

 

 

 

 

(0.02

)

 

 

 

 

 

(0.03

)

Refinancing costs per share

 

 

 

 

 

 

 

 

0.03

 

 

 

 

Tax effect of refinancing cost per share

 

 

 

 

 

 

 

 

0.00

 

 

 

 

Tax benefit distribution per share

 

 

 

 

 

 

 

 

 

 

 

0.03

 

Tax effect of tax benefit distribution per share

 

 

 

 

 

 

 

 

 

 

 

(0.00

)

Adjusted Diluted EPS

 

$

0.80

 

 

$

0.36

 

 

$

1.75

 

 

$

0.88

 

 

Willdan Group, Inc. Al Kaschalk Vice President Tel: 310-922-5643 akaschalk@willdan.com

Source: Willdan Group, Inc.

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