Mastech Holdings, Inc. Reports Second Quarter 2013 Results
PITTSBURGH, July 24, 2013 /PRNewswire/ — Mastech Holdings, Inc. (NYSE MKT: MHH), a national provider of Information Technology and Specialized Healthcare staffing services, announced today its financial results for the second quarter ended June 30, 2013.
Second Quarter Results:
Revenues for the second quarter of 2013 totaled $28.9 million, which represented a 14% increase over the corresponding quarter last year and a 7% improvement over first quarter 2013 results. Gross profit in the second quarter of 2013 was $5.5 million compared to $4.8 million in the second quarter of 2012. Consolidated net income for the second quarter 2013 totaled $789,000 or $0.23 per diluted share, compared to $458,000 or $0.14 per diluted share, during the same period last year.
Demand for our IT staffing services was solid in the current quarter and largely in-line with activity levels of a quarter ago. Market conditions in the healthcare staffing business were steady; however, higher than expected assignment ends in our travel nursing business negatively impacted revenues during the quarter. Gross margins in the second quarter of 2013 were 18.9%, which were slightly below gross margins of 19.1% reported a year earlier, but represented an improvement over first quarter 2013 gross margins of 18.1%.
Kevin Horner, Mastech’s Chief Executive Officer stated, We are pleased to deliver another quarter of both operational progress and sequential improvement to our financial results. During the quarter, we were able to increase our IT billable consultant-base by 9% and sequentially grew revenues by 7% despite some headwinds in our travel nursing business. Operationally, we are now generating a return on our focused investments made to our recruiting organization. Commercially, we are beginning to see gross margin expansion as our sales organization takes a more disciplined approach in securing new assignments.
Commenting on the Company’s financial position, Jack Cronin, Chief Financial Officer, stated, Our financial position at June 30, 2013 remains strong, with over $14 million of available borrowing capacity under our existing credit facility. During the quarter we continued to invest in operating working capital to support revenue growth. At June 30, 2013 our Days Sales Outstanding measurement stood at 52 days, which is an indication of our high-quality accounts receivables and predictable cash conversion metrics.
Companies of Interest:
|Companies of Interest included in|
this publication are derived from the numerous sources and screens we use
on a routine basis to select our focus companies featured in our monthly
newsletter the Emerging Growth News. While we have only
briefly reviewed these companies, something caught our attention and in
our opinion the company warrants further inspection.
|Graham Corp. (GHM:NYSE MKT) $28.00 6/3/2013|
The company designs, manufactures, and sells custom-built vacuum and heat transfer equipment to customers worldwide. Sales were up 53% and earnings were up 413% over the same period last year (as reported in the most recent quarter), trading at 25.23 times trailing earnings, 18.3 times forward earnings, 1.33 PEG ratio, 2.67 times sales, 3.01 times book, $5.17 per share in cash, $280 million market cap., $228 million enterprise value.
|Insignia Systems, Inc. (ISIG:NASDAQ) $2.00 5/1/2013|
The company markets in-store advertising products, programs, and services to consumer packaged goods manufacturers and retailers in the United States and internationally. Sales were up 85% and the company posted a profit versus a loss over the same period last year (as reported in the most recent quarter), trading at 1.35 times sales, 1.03 times book, $1.49 per share in cash, $27.3 million market cap., $6.9 million enterprise value.
|Cirrus Logic, Inc. (CRUS:NASDAQ) $19.62 4/25/2013|
The company a fabless semiconductor company, develops signal processing integrated circuits (ICs) for audio and energy markets. Sales were up 87% and earnings were up 64% over the same period last year (as reported in the most recent quarter), trading at 8.39 times trailing earnings, 6.56 times forward earnings, 0.29 PEG ratio 1.77 times sales, 2.28 times book, $2.30 per share in cash, $1.26 billion market cap., $996 million enterprise value.
|Charles & Colvard, Ltd. (CTHR:NASDAQ) $4.00 4/25/2013|
The company manufactures, markets, and distributes moissanite jewels and finished jewelry featuring moissanite worldwide. Sales were up 56% and the company posted a profit versus a loss over the same period last year (as reported in the most recent quarter), trading at 18.18 times trailing earnings, 3.5 times sales, 1.39 times book, $0.63 per share in cash, $79 million market cap., $66 million enterprise value.
|OmniVision Technologies, Inc. (OVTI:NASDAQ) $15.41 2/28/2013|
The company engages in designing, developing, and marketing semiconductor image-sensor devices worldwide. Sales were up 129% and earnings were up 300% over the same period last year (as reported in the most recent quarter), trading at 53.51 times trailing earnings, 9.76 times forward earnings, 0.79 times sales, 1.04 times book, $2.60 per share in cash, $830.26 million market cap., $743.84 million enterprise value.
|Tangoe, Inc. (TNGX:NASDAQ) $16.06 2/13/2013|
The company provides communications lifecycle management software and services primarily to large and medium-sized businesses, and other organizations worldwide. Sales were up 113% and earnings were up 50% over the same period last year (as reported in the most recent quarter), trading at 292 times trailing earnings, 25.09 times forward earnings, 4.35 times sales, 4.11 times book, $1.47 per share in cash, $608 million market cap., $581 million enterprise value.
|Chase Corporation (CCF:NYSE) $18.46 1/10/2013|
The company engages in the manufacture and sale of protective materials for various applications in the United States and internationally. Sales were up 50% and earnings were up 66% over the same period last year (as reported in the most recent quarter), trading at 17.92 times trailing earnings, 9.98 times forward earnings, 1.22 times sales, 1.69 times book, $1.67 per share in cash, $167.34 million market cap., $222.17 million enterprise value.
|WSI Industries, Inc. (WSCI:NASDAQ) $6.61 1/3/2013|
The company engages in the precision contract metal machining business in the United States. Sales were up 43% and earnings were up 275% over the same period last year (as reported in the most recent quarter), trading at 12.08 times trailing earnings, 0.55 times sales, 1.54 times book, $1.00 per share in cash, $17.88 million market cap., $21.82 million enterprise value.
|Triangle Petroleum Corp. (TPLM:NYSE) $5.98 12/13/2012|
The company engages in the acquisition, exploration, and development of unconventional shale oil resources in the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. Sales were up 570% and the company reported a profit versus a loss over the same period last year (as reported in the most recent quarter), trading at 11.07 times forward earnings, 6.28 times sales, 1.26 times book, $264.97 million market cap., $264.97 million enterprise value.
|Argan, Inc. (AGX:NYSE) $18.82 12/13/2012|
The company, through its subsidiaries, provides development, consulting, engineering, procurement, construction, commissioning, operations, and maintenance services to the power generation and renewable energy markets for public utilities, independent power project owners, municipalities, public institutions, and private industry. Sales were up 153% and earnings were up 71% over the same period last year (as reported in the most recent quarter), trading at 15.28 times trailing earnings, 11.34 times forward earnings, 1.05 times sales, 2.29 times book, $13.57 per share in cash, $259.21 million market cap., $72.38 million enterprise value.
Under $5.00 Hitting 12 Month Highs:
Under $5.00 With Significant Insider Buying:
to Focus List Companies:
|Companies included in WSR’s Focus List are|
a compilation of WSR’s Featured Companies and the companies included in
its model Microcap Portfolio.
Sponsors or Featured Companies:
|Black Ridge Oil & Gas, Inc.|
Black Ridge Oil & Gas is an oil and gas exploration and production company based in Minnetonka, Minnesota. Black Ridge’s focus is the Williston Basin Bakken and Three Forks trend in North Dakota and Montana. Black Ridge Oil & Gas currently controls over 11,000 net Bakken and/or Three Forks acres.
|Ecosphere Technologies, Inc.|
Ecosphere Technologies, Inc. is a water engineering, technology licensing and innovative U.S. manufacturing company that develops environmental water treatment solutions for industrial markets throughout the world. The Company is a leader in emerging advanced oxidation processes and has an extensive portfolio of intellectual property that includes five United States patents for the Ecosphere Ozonix(R) process. The patented Ecosphere Ozonix(R) process is a revolutionary advanced oxidation process that is currently being used by energy exploration companies to reduce costs, increase treatment efficiencies and eliminate liquid chemicals from wastewater treatment operations around the United States.
A recipient of Frost & Sullivan’s 2012 North American Product Leadership Award in Disinfection Equipment for Shale Oil and Gas Wastewater Treatment and chosen as a 2013 IHS CERAWeek Energy Innovation Pioneer, Ecosphere has enabled oil and gas customers to recycle and reuse over 3 billion gallons of water on approximately 700 oil and natural gas wells in major shale plays around the United States since 2008.
|EnerJex Resources, Inc.|
EnerJex Resources, Inc. is an Exploration and Production (E&P) company with producing assets located in Eastern Kansas and South Texas. The Company is focused on the acquisition and development of shallow oil properties that have low production decline rates and offer abundant drilling opportunities with low risk profiles. In addition, oil currently represents 100% of production and reserves, which is a big benefit in the current low natural gas price environment.
As of December 31, 2011, the Company had 2.7 million barrels of proved oil reserves and 1.3 million barrels of probable oil reserves, representing a $53.2 million proved PV-10 value and a $19.2 million probable PV-10 value.
|FieldPoint Petroleum Corp.|
The Company acquires, operates, and develops oil and gas properties located in Texas and Wyoming. FieldPoint Petroleum looks to continue expanding in Texas and Wyoming, as well as in other Rocky Mountain and mid-continent states such as Montana, North Dakota and Oklahoma.
As of January 2011, the Company has varying ownership interest in approximately 300 wells located in Oklahoma, Louisiana, New Mexico, Texas and Wyoming. FPPC oil and gas production is sold on the spot market.
The Company believes that, with operator’s responsibility and authority, it is in a better position to control cost, safety, and work timelines, as well as other critical factors affecting the wells’ economics.
|Liberator Medical Holdings, Inc.|
Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Approximately 85% of its revenue comes from supplying products to meet the rapidly growing requirements of general medical supplies, personal mobility aids, diabetes, urological, ostomy and mastectomy patients. Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.
Mimvi is a pure-play search engine and recommendation technology company for Mobile Apps. It’s (patent pending) proprietary search and “intelligent” recommendation algorithms enable the search and discovery of Mobile Apps, Mobile Content and Mobile Products across multiple devices and platforms, including: the Iphone,k Google Android, BlackBerry and Web Apps.
|Panache Beverages, Inc.|
Panache Beverage, Inc. is an alcoholic beverage company specializing in the development and global sales and marketing of spirits brands. The Panache
portfolio contains three brands, Wodka Vodka, Alchemia Vodka and Alibi Bourbon.
Panache holds a “build and exit” mentality – its expertise lies in the strategic development and early growth of its brands establishing the Company’s assets as viable acquisition candidates for the major global spirits companies including Diageo, Bacardi, Future Brands, Pernod Ricard and Moet Hennessey. The goal is to sell brands individually as they mature while continuing to pipeline new brands in to the Panache portfolio.
|Stratex Oil & Gas, Inc.|
Stratex is an independent energy company focused on the exploration, acquisition, and production of crude oil in the Bakken and Three Forks formations in North Dakota and Montana. It’s oil and natural gas operations are primarily concentrated in two Rocky Mountain basins, the Williston Basin of North Dakota and Montana, and the Green River Basin of Wyoming. Stratex’s corporate strategy is to internally identify prospects, acquire lands encompassing those prospects, and evaluate those prospects using subsurface geology, geophysical data, and exploratory drilling. Using this strategy, Stratex has developed an oil portfolio of proven reserves, as well as development and exploratory drilling opportunities on high potential oil prospects.
Stratex’s core operating areas are the Williston Basin in North Dakota and Montana, and the and the Denver-Julesburg Basin in Colorado. In the Williston Basin, Stratex focuses on oil production from multiple zones including the Bakken Shale and Three Forks Sanish Formations. In the Denver-Julesberg Basin Stratex focuses on the Niobrara Formations.
Stratex engages geologists, petroleum engineers, and geophysicists with years of relevant industry experience in the basins where the Company operates. Stratex strives to retain operations on its lands wherever possible in order to control the timing of the development of its leasehold.
|Water Technologies Intl., Inc.|
Water Technologies International, Inc., (WTII) is in the business of designing, manufacturing and distributing Atmospheric Water Generators (AWGs) and related products through its subsidiaries Aqua Pure International, Inc. and GR8 Water, Inc. The Company has patent pending products in water generation, air filtration, water filtration and dehumidification. WTII sells and distributes home, office and commercial AWGs units that produce drinking water, ranging from seven gallons to several thousands of gallons per day by extracting water from the air.
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