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Oct 02, 2020
Willdan Group Q3 2020 Earnings Report
Willdan Group's third quarter results were announced, revealing a decrease in consolidated contract revenue but an increase in net income.
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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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