Willdan Group (NASDAQ: WLDN) reported Q4 EPS of $0.61, $0.23 better than the analyst estimate of $0.38. Revenue for the quarter came in at $40.2 million versus the consensus estimate of $37.69 million.

• Consolidated Contract Revenue of $86.4 million
• Net Revenue of $40.2 million
• Net Income of $1.2 million
• Diluted earnings per share of $0.11, including Lime transaction costs and new shares issued
• Adjusted diluted earnings per share of $0.61
• Adjusted EBITDA of $6.6 million, an increase of 23.2%

For the fourth quarter of 2018, Willdan reported consolidated contract revenue of $86.4 million and net income of $1.2 million, or $0.11 per diluted share. This compares with consolidated contract revenue of $64.2 million and net income of $3.3 million, or $0.36 per diluted share, for the fourth quarter of 2017. Fourth quarter 2018 results include $0.9 million of transaction costs associated with the acquisition of Lime Energy, Inc. (“Lime Energy”) and approximately 2 million new shares issued to help fund the transaction. For the fourth quarter of 2018, Net Revenue, defined as revenue, net of subcontractor services and other direct costs (see “Use of Non-GAAP Financial Measures” below), was $40.2 million, up 29.2% compared to the same period in fiscal year 2017.

“We completed fiscal 2018 with a strong quarter that included the completion of our acquisition of Lime Energy,” said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer. “With our expanded scale, geographic presence and client base, we enter 2019 well positioned to capitalize on large markets such as California, New York and New Jersey. Lime Energy has performed well, is collaborating effectively, and we expect continued growth from them in 2019. Our pending acquisition of The Weidt Group also positions us to grow our presence in key Midwestern states. The Weidt Group is looking forward to cross selling their new construction energy efficiency and software to Willdan’s existing 70 plus Investor Owned Utility (“IOU”) client base. As the transportation fleet electrifies and green house gas becomes more important, all users of energy will be seeking smarter solutions. Willdan is building a company to provide these solutions.”

GUIDANCE:

Willdan Group sees FY2019 EPS of $2.35-$2.45, versus the consensus of $1.81. Willdan Group sees FY2019 revenue of $180-200 million, versus the consensus of $185.49 million.

• Effective tax rate of approximately 24%
• Diluted share count of 11.7 million shares
• Depreciation of approximately $4.5 million
• Amortization of approximately $7.6 million
• Stock-based compensation of approximately $11.9 million

For earnings history and earnings-related data on Willdan Group (WLDN) click here.