Willdan Group (NASDAQ: WLDN) reported Q3 EPS of $0.68, $0.46 better than the analyst estimate of $0.22. Revenue for the quarter came in at $51 million versus the consensus estimate of $47.74 million.

Third Quarter 2020 Summary

• Consolidated contract revenue of $104.5 million, a decrease of 11.1%
• Net revenue of $51.0 million, an increase of 0.3%
• Net income of $2.6 million, or $0.21 per diluted share
• Adjusted net income of $8.5 million, or $0.68 per diluted share
• Adjusted EBITDA of $11.0 million, or 21.6% of net revenue
• Cash utilized by operating activities of $2.4 million

Nine Months Year to Date 2020 Summary

• Consolidated contract revenue of $294.1 million, a decrease of 6.2%
• Net revenue of $143.8 million, an increase of 3.9%
• Net loss of $10.5 million, or $0.90 per diluted share
• Adjusted net income of $9.0 million, or $0.77 per diluted share
• Adjusted EBITDA of $19.5 million, or 13.6% of net revenue
• Cash provided by operating activities of $26.9 million

For the third quarter of 2020, Willdan reported consolidated contract revenue of $104.5 million and net income of $2.6 million, or $0.21 per diluted share. This compares with consolidated contract revenue of $117.5 million and net income of $0.4 million, or $0.04 per diluted share, for the third quarter of 2019. For the third quarter of 2020, Net Revenue, defined as revenue, net of subcontractor services and other direct costs (see “Use of Non-GAAP Financial Measures” below), was $51.0 million, remaining approximately flat compared to the same period in fiscal year 2019.

“In the third quarter, contract revenue was down from the prior year due to the pandemic, but adjusted EBITDA was better than we expected, indicating that we did a good job of controlling our costs. We generated $26.9 million in cash flow from operations year-to-date, a company record for the first nine months of a fiscal year. We estimate that pandemic related slowdowns and work suspensions are currently reducing our revenue by approximately 20% from our planned pre-pandemic levels,” said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer.

Mr. Brisbin concluded, “I’m excited to announce that Willdan has signed a total of $781 million in new California Investor Owned Utility (“IOU”) Contracts this year. These six contracts are three to five years in duration, and on a weighted average basis, represent approximately $150 million per year in incremental contract revenue on average over the next three to five years if we successfully execute the work. The new work is expected to begin slowly and accelerate throughout 2021, with most of the contribution expected in the back half of the year. Four of the six new contracts are awaiting California Public Utility Commission approval. We plan to announce each contract when approvals have been obtained. The San Diego Gas & Electric (“SDG&E”) Large Commercial program was announced previously. We expect these new wins to solidify our market position in California and provide the company a strong organic growth catalyst for years to come.”

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