Willdan Group Q3 2020 Earnings Report
Key Takeaways
Willdan Group reported a decrease in consolidated contract revenue by 11.1% to $104.5 million for the third quarter of 2020, while net revenue increased slightly by 0.3% to $51.0 million. Net income rose to $2.6 million, or $0.21 per diluted share, compared to $0.4 million, or $0.04 per diluted share, in the same period of the previous year. Adjusted EBITDA was $11.0 million, representing 21.6% of net revenue.
Consolidated contract revenue decreased by 11.1% to $104.5 million.
Net revenue increased slightly by 0.3% to $51.0 million.
Net income increased to $2.6 million, or $0.21 per diluted share.
Adjusted EBITDA was $11.0 million, 21.6% of net revenue.
Willdan Group
Willdan Group
Willdan Group Revenue by Segment
Forward Guidance
Willdan anticipates significant growth in contract revenue due to new contracts with California Investor Owned Utilities (IOUs), with an expected average increase of $150 million per year over the next three to five years, pending regulatory approvals and successful execution.
Positive Outlook
- Signed $781 million in new California IOU Contracts.
- Contracts are three to five years in duration.
- Expect approximately $150 million per year in incremental contract revenue.
- New work is expected to begin slowly and accelerate throughout 2021.
- Expect new wins to solidify market position in California.
Challenges Ahead
- Contract revenue was down from the prior year due to the pandemic.
- Pandemic-related slowdowns and work suspensions are reducing revenue by approximately 20% from planned pre-pandemic levels.
- Four of the six new contracts are awaiting California Public Utility Commission approval.
- New work is expected to begin slowly.
- Contribution is expected in the back half of 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income