Mastech Holdings, Inc. (NYSE MKT:MHH) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 09:00 am ET

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Mastech Holdings, Inc. (NYSE MKT:MHH) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Mastech Digital, Inc. call to discuss fourth quarter and full Year 2018 financial results taking place on February 12th, 2019. At this time, all participants will be in 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. Thank you, Ms. Ford Lacey, you may now begin.

Executive
Jennifer Ford Lacey

Thank you, Rob, and welcome to Mastech Digital's fourth quarter 2018 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website at www.mastechdigital.com. With me on the call today are Vivek Gupta, Mastech Digital's Chief Executive Officer; and Jack Cronin, our Chief Financial Officer.

I would like to remind everyone that statements made during this call that are not historical facts are forward-looking statements. These forward-looking statements include our financial, growth and liquidity projections, as well as statements about our plans, strategies, intentions, and beliefs concerning our business, cash flows, costs and the markets in which we operate. Without limiting the foregoing, the words believes, anticipates, plans, expects and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change.

There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements, including those listed in the Company's 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

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

As a reminder, we will not be providing guidance during this call, nor will we provide guidance in any subsequent one-on-one meetings or calls.

I will now turn the call over to Jack for a review of our fourth quarter and full year 2018 results.

Executive
Jack Cronin

Thanks, Jenna, and good morning, everyone. Revenues for the fourth quarter of 2018 totaled $44.6 million and represented a 10% increase compared to $40.5 million in the first -- fourth quarter of 2017. Our data and analytics services segment contributed $5.4 million of revenue during Q4 2018, compared to $5.1 million in the fourth quarter of 2017. Activity levels increased in the fourth quarter of 2018 when compared to the previous quarter in terms of both pipeline opportunities and project wins.

Organic year-over-year revenue growth from our IT staffing services segment was 11% in the fourth quarter as our global consultant