Willdan Group, Inc. (NASDAQ:WLDN) Q1 2021 Earnings Conference Call May 6, 2021 5:30 PM ET Company Participants Al Kaschalk - Investor Relations Tom Brisbin - Chief Executive Officer Creighton Early - Chief Financial Officer Mike Bieber - President Conference Call Participants Craig Irwin - ROTH Capital Partners Moshe Katri - Wedbush Securities Marc Riddick - Sidoti & Company Operator Good day, ladies and gentlemen, and welcome to the Willdan Group First Quarter Fiscal Year 2021 Conference Call. Today's conf ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 2, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in Its Charter) (IRS Employer Identification No.) Delaware 14-1951112 (State or Other Jurisdiction of Incorporation or Organization) 2401 East K ...

Willdan Group, Inc. (NASDAQ:WLDN) Q4 2020 Results Conference Call March 11, 2021 5:30 PM ET Company Participants Al Kaschalk - Investor Relations Tom Brisbin - Chief Executive Officer Stacy McLaughlin - Chief Financial Officer Mike Bieber - President Conference Call Participants Moshe Katri - Wedbush Securities Craig Irwin - ROTH Capital Partners Marc Riddick - Sidoti Operator Good day, everyone, and welcome to the Willdan Group Fourth Quarter and Fiscal Year 2020 Conference Call. Today's conference is bein ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 2, 2020 For the transition period from to Commission file number 001-33076 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WILLDAN GROUP, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorpo ...

Financial Data and Key Metrics Changes - Total contract revenue for Q2 2020 decreased by 20% to $83.5 million from $104.4 million in Q2 2019, primarily due to decreased contract revenue from direct install programs in the energy segment and engineering and consulting segment [9] - Net revenue was $43.2 million, a decrease of 7.7% from $46.8 million in the same quarter last year [10] - The company reported an operating loss of $3.8 million for Q2 2020 compared to operating income of $2.8 million in Q2 2019 [15] - Net loss for Q2 2020 was $5.0 million, or $0.43 per diluted share, compared to net income of $1.6 million, or $0.14 per diluted share, in the same period last year [17] - Adjusted EBITDA was $7.2 million for Q2 2020, down from $7.6 million in Q2 2019, with adjusted EBITDA as a percentage of net revenue at 16.7% compared to 16.2% in the prior year [15] Business Line Data and Key Metrics Changes - Within the energy segment, net revenue decreased by 10.2%, while the engineering and consulting segment saw a 1.8% decrease in net revenue [10][11] - Direct costs of contract revenue were 65% of total contract revenue in Q2 2020, down from 71% in Q1 2020 and 70% in the same period last year [12] Market Data and Key Metrics Changes - The company experienced a significant slowdown in business, with about 40% of operations halted due to COVID-19 lockdowns, primarily affecting utility direct install business [24] - Despite the challenges, 60% of the company's work was not affected, allowing employees to work from home [25] Company Strategy and Development Direction - The company is focusing on cash collection and has successfully generated $12.8 million in cash flow from operations in Q2 2020, an increase of 536% from the same period last year [19] - Management has taken measures to align costs with declining revenues, including furloughs and salary reductions, while maintaining health benefits for laid-off employees [26] - The company anticipates growth and plans to borrow additional amounts under its credit facility to support working capital needs as COVID-19 restrictions ease [21] Management's Comments on Operating Environment and Future Outlook - Management noted that all contracts, except for those with LADWP, have restarted, and no contracts have been canceled, only delayed [31] - The company expects to ramp up operations as schools and other facilities reopen, with a focus on energy efficiency programs [35] - Management expressed optimism about the future, stating that performance is expected to improve in the second half of the year [38] Other Important Information - The company amended its credit agreement to provide increased flexibility under debt covenants through Q2 2021 [20] - The company is actively engaged in legislation that will provide energy efficiency stimulus to small business utility programs across the country [35] Q&A Session Summary Question: What is the current impact of lockdowns on business? - Management indicated that LADWP is the only closed utility contract, with all other utility contracts across the nation open and running [41] Question: How quickly can the company ramp up hiring after furloughs? - Approximately 50 out of 350 furloughed employees remain on furlough, and the company has been able to bring back employees quickly [45] Question: What is the outlook for Q3 and Q4? - Management expects increased revenue in Q3, with margins improving slightly, while Q4 may remain flat depending on the pace of reopening [52] Question: How is the integrated analytics software business performing? - The pipeline looks good, with several small wins in Q2 and ongoing negotiations for larger projects [56] Question: What are the long-term acquisition goals of the company? - The acquisition pipeline has improved due to recessionary pressures, and the company is cautiously re-engaging with potential targets [85]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 3, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33076 WILLDAN GROUP, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporat ...

Willdan Group, Inc. (NASDAQ:WLDN) Q1 2020 Results Conference Call May 7, 2020 5:30 PM ET Company Participants Tony Rossi - Financial Profiles, Inc. Thomas Brisbin - Chairman and Chief Executive Officer Stacy McLaughlin - Chief Financial Officer Mike Bieber - President Conference Call Participants Craig Irwin - ROTH Capital Partners Jed Dorsheimer - Canaccord Genuity Operator Good day, and welcome to the Willdan Group First Quarter 2020 Conference Call. Today's conference is being recorded. At this time, I w ...

Financial Performance - Total contract revenue for the three months ended April 3, 2020, was $106,026,000, representing an increase of 15.5% compared to $91,793,000 for the same period in 2019[18]. - Net loss for the three months ended April 3, 2020, was $8,154,000, compared to a net loss of $417,000 for the same period in 2019, indicating a significant increase in losses[18]. - The company reported a comprehensive loss of $8,603,000 for the three months ended April 3, 2020, compared to a comprehensive loss of $636,000 for the same period in 2019, indicating worsening financial performance[18]. - Segment profit (loss) before income tax expense for the Energy segment was a loss of $6.406 million, while the Engineering and Consulting segment reported a profit of $2.004 million[106]. - The company experienced a net loss of $8.2 million for the three months ended April 3, 2020, compared to a net loss of $0.4 million in the same period last year[177]. Cash Flow and Liquidity - Cash and cash equivalents increased to $12,304,000 as of April 3, 2020, from $5,452,000 at the end of December 27, 2019, reflecting a positive cash flow trend[16]. - The company reported a net cash provided by operating activities of $16,455,000 for the three months ended April 3, 2020, compared to $10,487,000 for the same period in 2019, indicating improved operational efficiency[22]. - Cash flows from operating activities were $16.5 million for the three months ended April 3, 2020, compared to $10.5 million for the same period in 2019, driven by acquisitions and reduced working capital requirements[193]. - Cash flows used in investing activities decreased to $2.1 million for the three months ended April 3, 2020, from $23.7 million for the same period in 2019, primarily due to cash paid for equipment and leasehold improvements[194]. - Cash flows used in financing activities were $7.4 million for the three months ended April 3, 2020, compared to cash flows provided of $9.0 million for the same period in 2019, mainly due to repayments under term loan and revolving credit[195]. Assets and Liabilities - Total current assets decreased to $146,334,000 as of April 3, 2020, down from $175,473,000 at December 27, 2019, indicating a reduction in liquidity[16]. - Total liabilities decreased to $251,066,000 as of April 3, 2020, from $272,635,000 at December 27, 2019, showing a reduction in financial obligations[16]. - Total accrued liabilities decreased from $67.6 million in December 2019 to $39.9 million in April 2020[73]. - Total debt as of April 3, 2020, is $126.659 million, a decrease from $131.060 million as of December 27, 2019[82]. - The company has outstanding borrowings on Term A Loan of $92.5 million as of April 3, 2020, down from $95 million on December 27, 2019[82]. Acquisitions - The Company acquired E3, Inc. for up to $44.0 million, which includes $27.0 million in cash and potential earn-out payments of up to $12.0 million based on financial targets[126][127]. - E3, Inc. contributed $5.0 million in revenue and $0.9 million of income from operations during the three months ended April 3, 2020[133]. - The acquisition of Onsite Energy Corporation had a total consideration of $24.905 million, with cash paid amounting to $24.411 million[137]. - Onsite Energy contributed $2.2 million in revenue during the three months ended April 3, 2020, with no income from operations reported[139]. - The acquisition of The Weidt Group had a cash purchase price of $22.136 million, with no working capital adjustments[142]. Operational Impact of Covid-19 - In fiscal 2019, approximately 40% of the gross Energy segment revenue was derived from direct install programs serving small businesses, which are currently suspended due to Covid-19 restrictions[32]. - The Company executed a reduction in workforce impacting approximately 300 staff members due to government-mandated work restrictions[33]. - The Company enhanced liquidity in the first quarter of fiscal year 2020 by minimizing working capital and improving cash collections, and amended its credit facilities in May 2020 for increased financial flexibility[35]. - The Company expects significant budget shortfalls for many governmental and public agencies in 2020, potentially leading to delayed funding for existing contracts[38]. - The Company has implemented a temporary freeze on all non-critical spending, including travel and capital expenditures[39]. Revenue Recognition and Contracts - The Company recognizes revenue for time-and-materials contracts based on actual hours incurred at contractually agreed rates, including all reimbursable costs[48]. - Approximately 2.0% to 3.0% of the Company's consolidated contract revenue may comprise segmented contracts, which could result in different rates of profitability[51]. - The Company has retainage of approximately $4.4 million and $5.4 million included in contract assets as of April 3, 2020, and December 27, 2019, respectively[67]. - The Company recognizes software license revenue at a point in time when control is transferred to the client[69]. - The Company performs regular reviews of contract-related estimates through a disciplined project review process[56]. Customer Concentration - The Company derived 29.2% of its consolidated contract revenue from two customers, LADWP and DASNY, for the three months ended April 3, 2020[111]. - The top 10 customers accounted for 58.1% of the Company's consolidated contract revenue for the three months ended April 3, 2020, compared to 55.0% for the same period in 2019[111]. Goodwill and Intangible Assets - Goodwill increased from $127.6 million in December 2019 to $130.0 million in April 2020, with an addition of $2.4 million[74]. - Total intangible assets as of April 3, 2020, amounted to $98.158 million, with accumulated amortization of $24.578 million[76]. - Customer relationships represent the largest component of intangible assets at $60.733 million, with accumulated amortization of $9.688 million[76]. - The company recorded $21.5 million of goodwill from the acquisition of E3, Inc., which is expected to be tax deductible[130]. - The company recorded $9.0 million of goodwill from the acquisition of Onsite Energy, also expected to be tax deductible[136]. Debt and Financial Agreements - The Company entered into an interest rate swap agreement with a notional amount of $35 million, fixing the interest rate at 2.47% until January 31, 2022[79]. - The fair value of the interest rate swap agreement liabilities was $(624,000) as of April 3, 2020, compared to $(241,000) on December 27, 2019[80]. - The Company was in compliance with all covenants contained in the credit agreement as of April 3, 2020[86]. - The Company expects to borrow additional amounts under its existing credit facility during the second half of fiscal year 2020[35]. Cost Management - General and administrative expenses surged by $12.8 million, or 48.9%, totaling $39.0 million, largely due to increased salaries and costs from acquisitions[184]. - The company has implemented cost-saving measures in response to the impact of Covid-19, aiming to manage expenses effectively[186]. - Salaries and wages within direct costs increased to 17.8% of contract revenue, up from 16.2% in the previous year, while subcontractor services decreased to 53.2%[183].

Financial Data and Key Metrics Changes - Total contract revenue for Q4 2019 increased by 49.7% to $129.4 million from $86.4 million in Q4 2018, driven by growth in the Energy segment [6] - Net revenue rose by 51.8% to $61 million from $40.2 million year-over-year [6] - Adjusted EBITDA for Q4 2019 was $13.8 million, a 110% increase from $6.6 million in Q4 2018, with an adjusted EBITDA margin of 22.7% compared to 16.4% in the prior year [9] - Net income for Q4 2019 was $3.2 million, up 145.5% from $1.2 million in the same period last year, translating to $0.27 per diluted share [11] - For the full fiscal year 2019, consolidated contract revenue was $443.1 million, a 62.8% increase over the prior year [12] Business Line Data and Key Metrics Changes - Within the Energy segment, net revenue increased by 84.5%, while the Engineering and Consulting segment saw a decline of 5.2% [6] - Direct costs of contract revenue were $86.2 million, up 44.9% from $59.5 million year-over-year, but represented a decrease as a percentage of total contract revenue [7] Market Data and Key Metrics Changes - The New York Public Service Commission announced nearly $2 billion in additional utility energy efficiency funding through 2025, indicating strong market potential [19] - 68% of electric customers are served by utilities with climate goals, suggesting a growing focus on clean energy investments [20] Company Strategy and Development Direction - The company is focusing on expanding its capabilities through acquisitions and enhancing its service offerings, particularly in energy efficiency and electrification technologies [23][31] - Willdan aims to become a dominant player in the U.S. market, with a strong emphasis on collaboration and delivery [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming California contracts and the potential for revenue growth in the second half of 2020 [32] - The company anticipates continued organic growth, with expectations of single-digit growth for the full year 2020, potentially increasing with new contract awards [48] Other Important Information - The company recorded a net interest expense of $1.3 million in Q4 2019, reflecting increased debt from recent acquisitions [10] - The renewal of the 179D energy efficiency tax deduction is expected to lower cash taxes paid by the company [15] Q&A Session Summary Question: What were the largest drivers for the revenue upside for the quarter? - Management noted strong contributions from utility programs on the East and West Coasts, with additional funds pushed in by utilities towards the end of the year [39] Question: How should revenue be modeled for the next quarters in calendar 2020? - Revenue and EBITDA are expected to follow the proportions outlined in the guidance provided [41] Question: Do you believe that the 40% mandate will be achieved by year-end? - Management indicated that contracts need to be signed by December 31, 2020, and expressed optimism about revenue in the latter half of the year [43][45] Question: Can you describe the organic growth and whether there are elements that might not repeat in the first half of 2020? - Management expects organic growth to be single-digit for the full year, with potential upside in Q3 and Q4 from California awards [48] Question: What is the range of scenarios for Integral Analytics in 2020? - Management clarified that while the software business is expected to break even, there is potential for additional revenue beyond the guidance [54]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 27, 2019. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to . Commission File Number 001‑33076 WILLDAN GROUP, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdict ...