MHH - Earnings call transcript Q4 2018

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Operator

Greetings and welcome to the Mastech Digital call to discuss Fourth Quarter and Full Year 2018 Financial Results, taking place on February 12, 2019. At this time, all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jennifer Ford-Lacey, Manager of Legal Affairs for Mastech Digital. Ms. you, Thank

Ford-Lacey.

begin. now You may

Jennifer Ford-Lacey

Thank you, XXXX Digital's quarter to and call. welcome conference Mastech third Bop

events which to and are limiting operate. expects, There actual that Securities statements. as at similar Report call in and on include Form company's that foregoing, statements. everyone If yet our financial are Annual expressions like our historical I believes, have and certain these differ update words on are and and and it With remind you Jack materially intended during costs, not based on circumstances statements, no Without to that Vivek information projections These forward-looking and can earnings of statements made change. me Chief statements uncertainties the us beliefs Chief be forward-looking announcement, anticipates, Gupta, our Cronin, those Mastech the to flows, obtained facts Executive statements www.sec.gov. plans, could liquidity we These its available the and XXXX cause this identify forward-looking as call, assume our these about our statements would plans, are obligation and listed growth with from filed Exchange are the are concerning XX-K, on including from well Commission strategies, to risks statements we the website cash markets Digital's website www.mastechdigital.com. received not at in forward-looking as today a Officer; business, our copy the Officer. Financial currently available intentions, to

to provide financial certain Additionally, a presented our management supplement GAAP results basis. has non-GAAP financial on to measures elected

in with share comparable Reconciliations measures obtained non-GAAP operating to can which non-GAAP included Specifically, business. respect our our in measures be provide net data, www.mastechdigital.com. key of transparency website greater income GAAP per financial from to these and we we their used earnings metrics management believe announcement, our will by will which are earnings at diluted provide non-GAAP

be we any during will not and year or Jack will we call will calls. providing XXXX reminder, of guidance fourth call in a review the turn quarter a our nor to this full guidance over now As for subsequent results. one-on-one I meetings provide

Jack Cronin

Thanks, for of Jen, fourth everyone. and totaled morning increase to represented fourth $XX.X million Revenue million quarter a good and quarter XXXX the of compared the in XXXX. $XX.X XX%

quarter Our QX, fourth pool IT XXXX to remain for fourth fourth the data from services the than with quarter segment XXXX. staffing Demand in in terms during faces and high offset level by the our compared year-end. in strong XX% to year-over-year Organic billable increased of services year. increased services our base XX% quarter the XXXX staffing levels seasonal consultant and during $X.X that industry when wins. revenue of as our segment $X.X at the assignment quarter end IT our fourth the in more of quarter and project analytic previous million pipeline contributed million revenue of growth of compared Activity opportunities both in

the best $XX.X totaled since in XX million by performance terms for Our our Gross million XXXX billable same in headcount which QX, compared QX headcount was net $X.X increased to consultants, XXXX of year. in period profit growth. last QX

quarter revenues of to XXXX. margins compared gross of XX.X% the XXXX QX, in or XX.X% Our for fourth

which margins with QX, segment XX.X% of in data 'XX were XXXX QX, in analytic and had gross Our services line performance.

per as XXX of XXXX, tax to growth compared $XX.X our $XX.X the non-GAAP $X.X on two, in This the percent balances $X.XX revenues financial of bank in non-GAAP in SG&A credit million $XX.X to improvement Canadian five, XXXX. $X.X expense in XXXX. diluted favorably our our XXXX included charges, during share XX% measures, on the fourth IT offshore share for we diluted XXXX. of $XXX,XXX of a the in investments December of infantry SG&A available borrowing impacted division XX QX XX.X% in approximated services This or revenues services assignments income is in of our segment. a share in Gross of the of impairment segment. measures which benefits amortization the quarter compared our acquisition $X.X of reform. the quarter. This website. per XX% acquired tax over revenues fourth Gross increase detailed one, July GAAP or staffing income of financial services for represented consideration $XXX,XXX quarter to gross our IT to acquisition compared Non-GAAP $XXX.X XXXX services stock-based points the $X.XX an million debt, items Quickly IT reflective segment US areas million the at XXXX million principally XXXX in volume-driven to $XXX,XXX the analytic profits in diluted million $X.X expenses of compared addressing growth net were Non-GAAP totaled margin per margins availability were four, delivery, and had financial higher position comparable assets, is of net XX.X% high of million of compared compensation, XX, of under in sales our A QX, point our million Fourth $X expansion and total margins XXXX. entire share this to and million charges have SG&A and in Our diluted achieved liabilities net gross GAAP margins measures of compared GAAP to increase revenues staffing 'XX. per $X.XX XX% earnings and was net of in and the intangible on share goodwill system and QX direct XXXX, $X.X quarter XX% or gain basis commissions our new outstanding to due fourth per re-evaluation and other on Strong to in $X and million $XXX,XXX with QX not full-year net for totaled diluted XX.X% quarter compared income margins at the million income and quarter. were of quarter was organic per acquisition XXXX revenues corresponding segment are services share a or XXXX available represented impact increase million. $XXX.X based in $X.XX infantry IT or compared segment earnings was staffing on to costs Petrolia in and our three, had services XXXX diluted our release, cost or of to line. per per million $X.XX of for variable XX, XXXX contingent share $X.X Summarizing million were hand is items in associated in or staffing data detailed our results, of $X.XX of for release represented the million XXXX. in million diluted expenses revolving expenses that's cash $X.XX $XXX,XXX $X.X one our $X the diluted $X.XX in totaled our included year. share existing and fourth for related or higher 'XX and in XX.X% or website. compared upgrade XXXX. reconciliation net segment These

I'll cash progress debt by our million comments. for on quarter, conversion matters turn made now over as we his $X.X were ERP call levels the platform. implementation to of cloud-based the reduced the related to During Vivek new

Vivek Gupta

Jack results XXXX. the financial detailed Good of morning, everyone. our Thank you, operating for for review

good by I Mastech fourth a XXXX, Digital my segment. capabilities staffing data IT into transformation transitioning In in new of and stated IT continued Let growth services digital the that throughout mission levels we we activity from leading journey. increased pure believe a areas progress in our services. of reiterating the in me result play XXXX. in sales targeted particularly XXXX analytics player in company was quarter investments made project This delivery our and and in of wins, experienced start of

at Our we margins continue approximately by high and technologies. to year-over-year Gross expanded operating XX% levels very on a on IT basis. perform revenue profits as organic to in points XXXX basis staffing services digital XXXX growth XXX segment a level over increased continue focus XX% by

our While area infrastructure of say we for particularly, to have our support transformation invested year on pleased objectives during our believe in will which I'm summary, also both structure, the corporate enhanced support of our and we've course we future. the business well segments the In to in systems journey. are expectations, growth growth in we our support

operating two with segments. share my you now XXXX me for expectations our for Let

First services off, data analytics segment.

I've full that said this before, many times segment opportunities. believe is As I of

our broaden for America. services traction including beyond In to XXXX, in big high growth our seeing capabilities areas, already several going we analytics. data North and are will We endeavor

plan also to expand sales XXXX quality investments and size the making in organization. continue We to additional of our the

should in to historical revenues. approval allow lumpiness mitigate this us help initiative fully will on and capabilities expect capitalize also We delivery it quarterly this the segment's

IT better our segment segment. to than fully staffing expect our Next, services in industry staffing grow XXXX. I IT the services average

digital at drivers offshore again recruitment in gains center be will efficiency our XXXX. staffing key with Continued successes and technologies

delivery investment example state-of-the-art curve will plan will Noida, in center business. of of our to than to provide associates expand this XXXX, India QX our the enjoy also in conduct our amenities-filled on recruitment which vibrant new growth and continuing is both We One by more invest XX%. their facility a our ahead in to which workplace XXXX. in of capacity The and

morale as open organization. to to XXXX. both Collectively, we entire tell and are successful are anticipating happy across the prosperous a XXXX, session forward will we levels enter looking that extremely confidence the Lastly, for questions. I and now your high you I'm and

Operator

[Operator Instructions] you. Thank

from Maverick is the first The Moser Louis of coming Investors. line question with

Louis Moser

Benzinger. It's There's a Mastech information. year the full service is today headline called And earnings. reports really

last share. This got a you $X.XX same is idea any of per $X.XX Do they earnings XX% the from of how decrease year. have information? kind period So, a share that over

Jack Cronin

was in got do. XXXX. stock but we split $X.XX, we Yes, a one X.X Last year

do versus when you adjust stock $X.XX $X.XX. year's split, So the it's for last numbers

Louis Moser

headline. it's That or article People makes wouldn't sense, type know that. but the still, correct of a not

Jack Cronin

wrong. materially it's Yes,

picked up not reported something accurate. headline whoever So that's the

Louis Moser

down went terms they it people That's And sell Yes. it. you. [indiscernible]. you're have then because the to Thank of in stock the think going

Operator

closing the Thank you. Mr. At Gupta back to turn I'll Vivek time, floor this for remarks.

Vivek Gupta

further our look Thank are XXXX with in joining there no you questions If our sharing you. to late April. I you thank like we quarter operator. would call first results and to today for Thanks, forward

Operator

today's This Thank you, sir. concludes conference.

you this disconnect participation. for lines your may at You time. your Thank

Mastech Digital (MHH) 12 Feb 192018 Q4 Earnings call transcript