Willdan Group, Inc. (NASDAQ:WLDN) Q2 2022 Earnings Conference Call August 4, 2022 5:30 PM ET

Company Participants

Al Kaschalk – Vice President-Investor Relations

Tom Brisbin – Chairman and Chief Executive Officer

Kim Early – Chief Financial Officer

Mike Bieber – President

Conference Call Participants

Chip Moore – EF Hutton

Marc Riddick – Sidoti

Operator

Good day, and welcome to the Willdan Group Second Quarter Fiscal Year 2022 Conference Call. Today’s conference is being recorded.

At this time, I would like to turn the conference over to Al Kaschalk, VP, Investor Relations. Please go ahead, sir.

Al Kaschalk

Thank you, Jenny. Good afternoon, everyone, and welcome to Willdan Group’s second quarter fiscal 2022 earnings call. Joining our call today are Tom Brisbin, Chairman of the Board and Chief Executive Officer; Kim Early, Chief Financial Officer; and Mike Bieber, President.

The call today builds on our earnings release we issued after market close today. You may find the earnings release and the Willdan investor report that accompanies today’s call in the Press Release and Stock Information section of our Investor Relations website found at ir.wildan.com. Management will review prepared remarks, and then we will open the call up to your questions.

Statements made in the course of today’s conference call, including answers to your questions, 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 is 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 annual report on Form 10-K filed for the year ended December 31, 2021. The company cautions investors not to place undue reliance on the forward-looking statements made during the course of this conference call. We’ll then disclaim any obligation and does not undertake to update or revise any forward-looking statements made today.

In addition to GAAP results, Willdan also provides non-GAAP financial measures that we believe enhance the investors’ ability to analyze the business trends and performance. Our non-GAAP measures include net revenue, adjusted EBITDA and adjusted EPS.

Tom, I will now turn the call over to you.

Tom Brisbin

Thanks, Al, and good afternoon, everyone. The second quarter did not meet our expectations. We have hit some headwinds. First, the California IOU programs, which we will discuss. Second, we will – we are also faced with some timing issues on software license sales. Also, COVID supply chain has slowed some contracts. Given these headwinds, the quarter was weak. We expect to turn the corner significantly in the second half.