Group 1 - Robert F. Abbott has been managing family investments since 1995 and incorporated options trading in 2010, focusing on covered calls and collars with long stocks [1] - Abbott is a freelance writer with a project aimed at providing information for new and intermediate-level mutual fund investors [1] - He holds a Bachelor of Arts and a Master of Business Administration (MBA) degree [1]

Core Insights - Willdan Group, Inc. has secured an $11 million energy and infrastructure modernization project from the City of South Lake Tahoe, CA, aimed at reducing carbon emissions and enhancing long-term infrastructure [1][2] - The project includes the installation of a cogeneration microturbine, photovoltaic solar panels producing 415 kWdc, advanced building automation systems, energy-efficient power transformers, and a new CO2 ice plant [3] - Willdan has experienced consistent contract wins, with a total of 14 reported projects in 2024, indicating strong growth prospects [5][6][7] Company Performance - Willdan's stock declined by 2.8% during trading hours on a recent Tuesday [4] - Over the past six months, Willdan's shares have gained 23.9%, significantly outperforming the Zacks Business - Services industry's growth of 0.5% [9] - The ongoing contract wins are expected to drive the company's performance, particularly due to increased electricity demand from data centers influenced by artificial intelligence trends [9]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Willdan Group (WLDN) is currently highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company operates in the energy efficiency and sustainability consulting sector, which is positioned for growth [3] Group 2: Earnings Growth - Willdan has a historical EPS growth rate of 32.6%, with projected EPS growth of 28.6% for the current year, significantly outperforming the industry average of 5.6% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Willdan is 44.2%, far exceeding the industry average of 1.7%, indicating strong operational efficiency [5] - Over the past 3-5 years, Willdan's annualized cash flow growth rate has been 12.7%, compared to the industry average of 10.8% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Willdan, with the current-year earnings estimates increasing by 5.8% over the past month, suggesting strong future performance [7] Group 5: Investment Positioning - Willdan's combination of a Growth Score of A and a Zacks Rank of 2 positions it well for potential outperformance, making it an attractive option for growth investors [9][11]

Group 1 - Willdan Group's stock has increased by 15.4% over the past 74 days, outperforming the S&P 500, which rose by 7.2% during the same period [1] - The analysis emphasizes a focus on fundamental financial ratios and metrics for clearer insights into stock performance [1] Group 2 - The article is written by an analyst with a strong background in finance and economics, specializing in individual stock analysis [1]

Core Insights - Willdan Group, Inc. has secured a three-year contract worth $4.5 million with the City of Bellflower, CA, enhancing its presence in Los Angeles County and showcasing its capability in delivering essential municipal services [1][2]. Company Developments - CEO Mike Bieber expressed gratitude for the contract, highlighting its role in expanding Willdan's operations in Los Angeles County and the company's commitment to meeting the city's current and future needs [2]. - The City of Bellflower, with a population of nearly 80,000 and 4,000 businesses, prioritizes high-quality governance and services, which aligns with Willdan's expertise and collaborative approach [2]. Strategic Focus - The Bellflower contract aligns with Willdan's strategic focus on expanding recurring revenue through long-term municipal partnerships, aiming to deepen its regional presence while leveraging its reputation for efficient municipal services [3]. - Willdan reported double-digit organic growth in municipal projects, indicating a robust outlook across state and local government clients [3]. Financial Performance - In the third quarter of 2024, Willdan experienced a 38% increase in adjusted EBITDA to $39.1 million, driven by growth in municipal engineering, project management, and utility program management revenues [4]. - Adjusted earnings per share (EPS) grew by 79% to $1.70, supported by reduced net interest expenses and a lower effective tax rate [4]. Stock Performance - Willdan's shares have increased by 107.3% over the past year, significantly outperforming the industry average of 0.9% [5]. - The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year growth of 28.6%, with recent estimates rising from $2.1 to $2.25, reflecting analysts' optimism [5].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Willdan Group (WLDN) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the energy efficiency and sustainability consulting sector, which is currently positioned for growth [3] Group 2: Earnings Growth - Willdan has a historical EPS growth rate of 32.6%, with projected EPS growth of 28.6% for the current year, significantly outperforming the industry average of 5.6% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Willdan is reported at 44.2%, well above the industry average of 5.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years stands at 12.7%, compared to the industry average of 10.8% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Willdan have been revised upward, with the Zacks Consensus Estimate increasing by 5.8% over the past month [9] - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, indicating favorable conditions for Willdan [8] Group 5: Investment Positioning - Willdan's combination of strong earnings growth, robust cash flow growth, and positive earnings estimate revisions positions it well for outperformance, making it an attractive option for growth investors [10]

Willdan Group, Inc. (NASDAQ:WLDN) Q3 2024 Earnings Conference Call October 31, 2024 5:30 PM ET Company Participants Al Kaschalk - VP of IR Michael Bieber - President & CEO Kim Early - EVP & CFO Conference Call Participants Craig Irwin - ROTH Capital Partners Jay McCanless - Wedbush Securities Operator Greetings, and welcome to the Willdan Group Third Quarter 2024 Financial Results Conference Call. At this time all participants are in a listen-only mode. A question and answer session will follow the formal p ...

Financial Performance - Contract revenue for the three months ended September 2024 was $158.252 million, compared to $132.738 million for the same period in 2023, representing a 19.2% increase[16] - Gross profit for the three months ended September 2024 was $51.601 million, up 18.8% from $43.428 million in the same period last year[16] - Net income for the three months ended September 2024 was $7.346 million, a significant increase from $1.566 million in the same period in 2023[16] - Diluted earnings per share for the three months ended September 2024 was $0.51, compared to $0.11 in the same period last year[16] - Net income for the nine months ended September 2024 was $14.882 million, a substantial increase from $2.895 million in the same period in 2023[16] - Total comprehensive income for the three months ended September 2024 was $6.668 million, compared to $1.566 million in the same period last year[16] - Net income for the nine months ended September 29, 2023, was $2,895 million, compared to $14,882 million for the same period in 2024[22] - Net income for the three months ended September 27, 2024, was $7.346 million, compared to $1.566 million for the same period in 2023[90] - Net income for the nine months ended September 27, 2024, was $14.882 million, compared to $2.895 million for the same period in 2023[90] - Net income for the three months ended September 27, 2024 was $7.346 million, with basic EPS of $0.53 and diluted EPS of $0.51[108] - Net income for the nine months ended September 27, 2024 was $14.882 million, with basic EPS of $1.08 and diluted EPS of $1.05[108] - Contract revenue for Q3 2024 increased by 19.2% to $158.252 million compared to $132.738 million in Q3 2023[125] - Gross profit for Q3 2024 rose by 18.8% to $51.601 million, with a gross margin of 32.6%[125] - Net income for Q3 2024 surged by 369.1% to $7.346 million compared to $1.566 million in Q3 2023[125] - Total contract revenue for the nine months ended September 2024 increased by 19.0% to $421.737 million compared to $354.418 million in the same period of 2023[128] - Net income for the nine months ended September 2024 jumped by 414.1% to $14.882 million compared to $2.895 million in the same period of 2023[128] - Net income for Q3 2024 was $7.3 million, a significant increase from $1.6 million in Q3 2023, driven by higher operating income and lower tax rates[146] - Net income for the nine months ended September 27, 2024, was $14.9 million, up from $2.9 million in the same period in 2023, due to higher operating income and lower tax rates[159] Expenses and Costs - Total general and administrative expenses for the three months ended September 2024 were $42.927 million, up 8.4% from $39.591 million in the same period in 2023[16] - Stock-based compensation expense for the three months ended September 2024 was $2.020 million, compared to $1.244 million in the same period last year[16] - Total direct costs of contract revenue for the nine months ended September 2024 were $273.914 million, up 19.6% from $229.076 million in the same period last year[16] - Stock-based compensation expense for the nine months ended September 29, 2023, was $4,064 million, compared to $5,355 million for the same period in 2024[22] - The company made matching contributions of $2.1 million to its defined contribution plan for the nine months ended September 27, 2024, compared to $1.9 million for the same period in 2023[82] - The company recorded an income tax expense of $0.2 million and $1.9 million for the three and nine months ended September 27, 2024, respectively[106] Revenue Recognition and Contracts - The company recognizes revenue using the percentage-of-completion method for fixed price contracts, based on the ratio of direct costs incurred-to-date to estimated total direct costs at completion[35] - Revenue on time-and-materials contracts is recognized based on actual hours incurred at contractually agreed rates per hour, including reimbursable costs[36] - Segmented contracts, which may comprise 2.0% to 3.0% of the company's consolidated contract revenue, are evaluated for separate revenue recognition based on technical resources and service demand[38] - Contract assets included retainage of approximately $18.9 million as of September 27, 2024, and $14.3 million as of December 29, 2023[53] - Revenue from fixed-price contracts for the three months ended September 27, 2024, was $75.052 million, with Energy contributing $73.596 million and Engineering & Consulting contributing $1.456 million[91] - Revenue from government clients for the three months ended September 27, 2024, was $83.270 million, with Energy contributing $61.115 million and Engineering & Consulting contributing $22.155 million[91] - Domestic revenue for the three months ended September 27, 2024, was $158.252 million, with no material revenue from foreign operations[91][95] - Fixed price contracts accounted for $75.052 million of total revenue in Q3 2024, representing 47.4% of total contract revenue[130] - Domestic revenue for Q3 2024 was $158.252 million, with no material revenue from foreign operations[130] - The company's contracts as of September 27, 2024, consist of 18% time-and-materials, 38% unit-based, and 44% fixed price contracts, compared to 21%, 39%, and 40% respectively as of September 29, 2023[179] Segment Performance - The company operates in two financial reporting segments: Energy and Engineering and Consulting[24] - Contract revenue for the three months ended September 27, 2024, was $158.252 million, with Energy contributing $134.036 million and Engineering & Consulting contributing $24.216 million[90] - Segment profit before income tax expense for the three months ended September 27, 2024, was $7.503 million, a significant increase from $2.279 million in the same period in 2023[90] - Contract revenue for the nine months ended September 27, 2024, was $421.737 million, with Energy contributing $352.634 million and Engineering & Consulting contributing $69.103 million[90] - Segment profit before income tax expense for the nine months ended September 27, 2024, was $16.745 million, up from $4.607 million in the same period in 2023[90] - Energy segment revenues for the three months ended September 27, 2024 were 22.1% derived from two customers, Southern California Edison and Clark County School District[98] - For the nine months ended September 27, 2024, no single customer accounted for 10% or more of the Energy segment revenues[98] - Energy segment revenue for Q3 2024 was $134.036 million, while Engineering and Consulting segment revenue was $24.216 million[130] - Government clients contributed $83.270 million to total revenue in Q3 2024, representing 52.6% of total contract revenue[130] - Utilities clients contributed $65.050 million to total revenue in Q3 2024, representing 41.1% of total contract revenue[130] - Energy segment contract revenue grew by $23.0 million (20.7%) in Q3 2024, primarily due to increased demand for energy efficiency and electrification services[135] - Engineering & Consulting segment contract revenue increased by $2.5 million (11.6%) in Q3 2024, driven by higher demand for client services[136] - Energy segment contract revenue for the nine months ended September 27, 2024, grew by $60.3 million (20.6%), driven by higher construction management revenues and energy services demand[147] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 29, 2023, was $24,112 million, compared to $38,611 million for the same period in 2024[22] - The company's cash and cash equivalents totaled $53.106 million as of September 27, 2024, compared to $23.397 million as of December 29, 2023[55] - Cash flows used in financing activities were $2.9 million for the nine months ended September 27, 2024, compared to $21.6 million for the same period in 2023[167] - The company repaid $5.6 million under its Term Loan, used $1.2 million for withholding taxes on stock grants, and made $1.0 million in principal payments on finance leases during the nine months ended September 27, 2024[167] - The company received $2.8 million from sales of common stock under the employee stock purchase plan and $2.4 million from stock option exercises during the nine months ended September 27, 2024[167] - As of September 27, 2024, the company had $91.894 million in debt obligations, with $10.137 million due in less than 1 year and $81.757 million due in 1-3 years[173] - The company's total contractual cash obligations as of September 27, 2024, were $122.445 million, including $11.821 million in interest payments on outstanding debt[173] - As of September 27, 2024, the company had $92.5 million outstanding under its Term Loan and no borrowed amounts under its Revolving Credit Facility[194] - The company's Term Loan and Revolving Credit Facility mature on September 29, 2026, with the Term Loan amortizing at 7.5% per annum for the first year and 10.0% per annum for the second and third years[196] - The company had $53.1 million in cash and cash equivalents as of September 27, 2024, held in business checking accounts with BMO Bank, N.A.[193] - The company's borrowings under its Credit Agreement bear interest at either a Base Rate or the adjusted Secured Overnight Financing Rate (SOFR), plus an applicable margin ranging from 0.75% to 2.00% for Base Rate borrowings and 1.75% to 3.00% for SOFR borrowings[195] - The company entered into an interest rate swap agreement for $50.0 million notional amount with a fixed rate of 4.77%, expiring on September 29, 2026[197] - A one percentage point increase in the effective interest rate would change the company's annual interest expense by approximately $1.1 million in fiscal year 2024[198] Assets and Liabilities - Balance of retained earnings as of September 27, 2024 was $29.459 million, compared to $14.577 million at December 29, 2023[19] - The company's total assets increased from $181,502 million at December 30, 2022, to $191,073 million at September 29, 2023[21] - Retained earnings grew from $3,651 million at December 30, 2022, to $6,546 million at September 29, 2023[21] - Equipment and leasehold improvements, net increased to $28.955 million as of September 27, 2024, compared to $27.097 million as of December 29, 2023[56] - Total accrued liabilities rose to $58.521 million as of September 27, 2024, up from $54.129 million as of December 29, 2023[57] - Goodwill remained unchanged at $131.144 million as of September 27, 2024, with no additions or adjustments during the period[58] - Total intangible assets stood at $99.814 million as of September 27, 2024, with accumulated amortization of $73.273 million[59] - Total debt decreased to $92.637 million as of September 27, 2024, from $98.452 million as of December 29, 2023[68] - The company's composite interest rate was 7.2% as of September 27, 2024, excluding upfront fees, undrawn fees, and issuance cost amortization[69] - Right-of-use assets increased to $14.366 million as of September 27, 2024, from $12.465 million as of December 29, 2023[76] - Total lease liabilities increased to $16.102 million as of September 27, 2024, from $14.295 million as of December 29, 2023[76] - Weighted average remaining lease term for operating leases decreased to 3.05 years as of September 27, 2024, from 3.43 years as of December 29, 2023[76] - Weighted average discount rate for operating leases increased to 6.91% as of September 27, 2024, from 6.09% as of December 29, 2023[76] - Cash paid for operating leases was $4.707 million for the nine months ended September 27, 2024, compared to $4.318 million for the same period in 2023[77] - Total lease payments for operating leases as of September 27, 2024, are $18.056 million, with imputed interest of $1.954 million[78] Leases - The company leases office facilities and equipment under long-term, non-cancellable operating and finance leases expiring through 2029[71] - Financing lease assets are amortized over the life of the lease or the leased asset, with interest included in interest expense[73] - Operating lease cost for the three months ended September 27, 2024, was $1.522 million, compared to $1.464 million for the same period in 2023[75] - Total net lease cost for the three months ended September 27, 2024, was $1.946 million, compared to $1.802 million for the same period in 2023[75] Acquisitions and Investments - The company acquired Enica Engineering for a potential maximum purchase price of $18.0 million, with $12.0 million paid in cash on the closing date[116] - Enica's financial information will be included within the company's Energy segment starting in the fourth quarter of fiscal year 2024[118] - The company expects to finalize the purchase price allocation related to the Enica acquisition by the end of the second quarter of fiscal year 2025[118] Regulatory and Compliance - The company is evaluating the impact of ASU 2023-09 on its consolidated financial statements, which requires enhanced income tax disclosures[29] - The company is also assessing the implications of ASU 2023-07, which expands segment reporting requirements[30] - The company's disclosure controls and procedures were effective as of September 27, 2024, at a reasonable assurance level[200] - No material changes in internal control over financial reporting occurred during the reporting period[201] - The company accrues an undiscounted liability for loss contingencies where the loss is probable and the amount can be reasonably estimated[204] Market and Customer Concentration - The top 10 customers accounted for 49.1% of consolidated contract revenue for the three months ended September 27, 2024, and 49.5% for the nine months ended September 27, 2024[96] - Services provided to clients in California accounted for 42.2% and 43.3% of the company's consolidated contract revenue for the three and nine months ended September 27, 2024, respectively[100] - Services provided to clients in New York accounted for 21.0% and 23.7% of the company's consolidated contract revenue for the three and nine months ended September 27, 2024, respectively[100] Operational Challenges - The company's operations have not been materially impacted by inflation historically due to the average duration of projects and ability to negotiate prices[176] - The company has experienced higher costs of materials and supply chain delays, though not materially impacting results of operations and financial condition[177]

Willdan Group (WLDN) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32.73%. A quarter ago, it was expected that this energy efficiency and sustainability consultant would post earnings of $0.29 per share when it actually produced earnings of $0.55, delivering a surprise of 89.66%.Ove ...

Exhibit 99.1 Willdan Group Reports Third Quarter 2024 Results ANAHEIM, Calif. –October 31, 2024 – Willdan Group, Inc. ("Willdan") (Nasdaq: WLDN) today reported financial results for its third quarter ended September 27, 2024. Third Quarter 2024 Highlights* ● Contract revenue of $158.3 million, up 19.2%. ● Net revenue** of $75.7 million, up 15.9%. ● Net income of $7.3 million, up from net income of $1.6 million. ● Adjusted EBITDA** of $15.2 million, up 49.7%. ● GAAP Diluted EPS of $0.51, up from $0.11. ● Adj ...