Vivek Gupta, the Company’s President and Chief Executive Officer stated: “The first quarter of
2024 showed encouraging signs of market improvements in both of our business segments. This quarter was the first quarter since the third quarter of 2022 where both of our segments’ clients shifted their spending patterns in a positive
direction. Additionally, gross margins improved during the quarter by 140-basis points when compared to a year ago, and we successfully reduced S,G&A expenses by 3% from the corresponding quarter of 2023.
While there is still more work to be done, we have a more positive outlook on market conditions and our growth opportunities for 2024.”
Commenting
on the Company’s financial position, Jack Cronin, Mastech Digital’s Chief Financial Officer stated: “On March 31, 2024, we had $19.4 million of cash balances on hand, no bank debt, and borrowing availability of
$24.2 million under our revolving credit facility. Our Days Sales Outstanding (DSO) measurement was a healthy 56 days at the end of first quarter, which is an improvement of 5 days when compared to a year ago.”
About Mastech Digital, Inc.:
Mastech Digital (NYSE
American: MHH) is a leading provider of Digital Transformation IT Services. The Company offers Data Management and Analytics Solutions, Digital Learning, and IT Staffing Services with a Digital First approach. A minority-owned enterprise,
Mastech Digital is headquartered in Pittsburgh, PA, with offices across the U.S., Canada, Europe, and India.
Use of
Non-GAAP Measures:
This press release contains non-GAAP financial
measures to supplement our financial results presented on a GAAP basis. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented
in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in the attached financial tables.
We believe that
providing non-GAAP net income and non-GAAP diluted earnings per share offers investors useful supplemental information about the financial performance of our business,
enables comparison of financial results between periods where certain items may vary independent of business performance, and allows for greater transparency with respect to key metrics used by management in operating our business. Additionally,
management uses these non-GAAP financial measures in evaluating the Company’s performance.
Specifically, the
non-GAAP financial measures contained herein exclude the following expense items:
Amortization of acquired
intangible assets: We amortize intangible assets acquired in connection with our June 2015 acquisition of Hudson IT, our July 2017 acquisition of the services division of InfoTrellis, Inc. and our October 2020 acquisition of AmberLeaf Partners.
We exclude these amortization expenses in our non-GAAP financial measures because we believe it allows investors to make more meaningful comparisons between our operating results and those of other companies
within our industry and facilitates a helpful comparison of our results with other periods.
Stock-based compensation expenses: We incur material
recurring expenses related to non-cash, stock-based compensation. We exclude these expenses in our non-GAAP financial measures because we believe that it provides
investors with meaningful supplemental information regarding operational performance. In particular, because of