Willdan Group, Inc. (NASDAQ:WLDN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:30 pm ET


Willdan Group, Inc. (NASDAQ:WLDN) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the Willdan Group Second Quarter 2020 Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Al Kaschalk, Vice President, Investor Relations. Please go ahead, sir.

Al Kaschalk

Thank you, Telari. Good afternoon, everyone, and welcome to Willdan Group's Second Quarter Earnings Call. Joining our call today are Tom Brisbin, Chairman of the Board and Chief Executive Officer; Stacy McLaughlin, Chief Financial Officer; and Mike Bieber, President of Willdan Group. The call today builds on our earnings release, which we issued after market close today. You may find the earnings release and the Willdan Investor Report Q2 2020 that accompanies today's call in the Investors section of willdan.com.

Management will review prepared remarks and we will then open the call up to your questions. Statements made in the course of today's conference call, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve certain risks and uncertainties, and it's important to note that the company's future results could differ materially from those in any such forward-looking statements.

Factors that could cause actual results to differ materially and other risk factors are listed from time to time in the company's SEC reports, including, but not limited to, the Form 10-K for the year ended December 27th, 2019 and subsequent quarterly reports on Form 10-Q. The company cautions investors not to place undue reliance on the forward-looking statements made during the course of this conference call. Willdan Group disclaims any obligation and does not undertake to update or revise any forward-looking statements made today.

In addition to GAAP results, Willdan also provide non-GAAP financial measures that we believe enhance investors' ability to analyze the business trends and performance. Our non-GAAP measures include net revenue, adjusted EPS and adjusted EBITDA. We believe net revenue allows for an improved measure of the revenue derived from the work performed by our employees. Adjusted EPS and adjusted EBITDA are supplemental measures of operating performance, which removes the impact of certain expense items from our operating results.

GAAP reconciliations for all of these non-GAAP measures are included at the end of the earnings release we issued today. With that, I'll now turn the call over to Stacy to provide financial details, who will be followed by Tom who will provide a business update, including commentary on COVID-19 activities and related business outlook for our company before our Q&A session. Stacy?

Stacy B. McLaughlin

Thanks, Al. I'll start with a brief recap of our business and provide financial details on the second quarter including our income statement, and then discuss our balance sheet. The COVID-19 pandemic and efforts to limit its spread negatively impacted our business during the three and six months ended July 3rd, 2020, but overall, our performance was better than we expected at our last quarterly call on May 7th. In California and New York, the states in which we have historically derived