Willdan Group, Inc. (NASDAQ:WLDN) Q4 2022 Earnings Conference Call March 9, 2023 5:30 PM ET Company Participants Al Kaschalk - VP of IR Thomas Brisbin - Chairman & CEO Creighton Early - CFO & VP Michael Bieber - President Conference Call Participants Chip Moore - EF Hutton Marc Riddick - Sidoti & Company Operator Greetings, and welcome to the Willdan Group Fourth Quarter and Full Year 2022 Financial Results Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host, Al Kaschalk o ...

Table of Contents If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | "C/l 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 | | ...

Financial Data and Key Metrics Changes - Gross revenue for Q3 2022 increased by 23.5% year-over-year to $121.4 million, while net revenue rose 8.2% to $58.9 million [23] - EBITDA margin for Q3 2022 was 13.5%, with adjusted EBITDA at $8.0 million compared to $10.1 million in Q3 2021 [10][27] - The net profit for Q3 2022 was $76,000, down from $840,000 in Q3 2021, reflecting a loss before income taxes of $1.5 million [26] Business Line Data and Key Metrics Changes - The Energy segment showed strong performance, with energy consulting and engineering contributing significantly to revenue growth [11] - Construction management revenues increased, but lower software revenues impacted gross profit margins, which fell to 30.9% from 38.8% year-over-year [24] - The Engineering segment continued to grow, with new assignments in Florida and Texas, indicating expansion beyond California [18] Market Data and Key Metrics Changes - The company is actively engaging with California IOUs, with significant contracts in place, including those with Los Angeles Department of Water and Power and Con Edison [13][14] - The Inflation Reduction Act has created opportunities for the company to assist cities with energy and climate tax incentives [19] Company Strategy and Development Direction - The company is focusing on electrification and clean energy transition, leveraging its expertise in performance contracting and municipal engineering [11][40] - Willdan aims to create synergies with cities and engineering practices to support decarbonization efforts [12] Management's Comments on Operating Environment and Future Outlook - Management affirmed guidance for 2022, expecting net revenue growth greater than 10% and an EBITDA margin exceeding 10% [9][33] - The company has resolved major issues with three of the four California IOUs, indicating a positive outlook for future operations [20] Other Important Information - Cash flows from operations improved, with positive cash flow of $8.1 million for Q3 2022, compared to cash used in 2021 [29] - The credit agreement has been amended to adjust the minimum adjusted EBITDA threshold and leverage ratio, extending through March 31, 2023 [31][32] Q&A Session Summary Question: Electrification opportunity and IRA drivers - Management discussed the importance of electrification for IOUs and how Willdan is positioned to capitalize on this trend, particularly in California and New York [37][40] Question: General outlook on the company's position - Management expressed optimism about the company's ability to pivot towards electrification and energy savings, highlighting ongoing projects and contracts [41][44]

Table of Contents UNITED STATES (Exact Name of Registrant as Specified in Its Charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 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. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (IRS Employer Identification No.) De ...

August 2022 Safe Harbor Statement – Statements in this presentation that are not purely historical, are forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Willdan's actual results could differ materially from those in any such forward-looking statements. Willdan's business could be affected by a number of other factors, including the risk factors listed from time to time in Willdan's SEC reports including, but not limit ...

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 ...

Financial Position - As of July 1, 2022, the company had cash and cash equivalents of $5.8 million[211] - The company had $70.0 million outstanding under its Term A Loan and $42.5 million under its delayed draw term loan as of July 1, 2022[212] Contract Types - 22% of the company's contracts are time-and-materials contracts, 47% are unit-based contracts, and 31% are fixed price contracts as of July 1, 2022[196] Interest Rate Risk - A one percentage point increase in the effective interest rate would change the company's annual interest expense by approximately $1.1 million in 2022[213] - The Term A Loan amortizes quarterly in installments of $2.5 million, with a final payment due on June 26, 2024[214] - The company is subject to interest rate risk due to its variable rate debt, including the Term A Loan and revolving credit facility[212] Economic Impact - Inflationary pressures may impact the customers of the company's utility clients, potentially affecting future revenues[195] Performance Guarantees - The company has not experienced significant costs under performance guarantees related to its contracts[200] Internal Controls - The company maintains effective disclosure controls and procedures as of July 1, 2022[216] - No material changes in internal control over financial reporting occurred during the reporting period[217]

Willdan Group, Inc. (NASDAQ:WLDN) Q1 2022 Earnings Conference Call May 5, 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 Conference Call Participants Craig Irwin – Roth Capital Partners Marc Riddick – Sidoti and Company, LLC Operator Ladies and gentlemen, welcome to the Willdan Group First Quarter 2022 Earnings Conference Call. Our host for today is Al Kaschalk, VP of Investor Relatio ...

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 1, 2022 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) (IRS Employer Identification No.) Delawar ...

Financial Data and Key Metrics Changes - In Q4 2021, gross revenue declined by 4.8% to $92.2 million, while net revenue increased by 2.1% to $51.8 million compared to Q4 2020 [22][26] - For the full year 2021, gross revenue decreased by 9.5% to $354 million, but net revenue increased by 3.6% to $202 million [26][28] - Adjusted EBITDA for Q4 2021 rose by 9.7% to $9.4 million, representing 18.2% of net revenue, compared to $8.6 million or 16.9% a year ago [26] - The company reported a net loss of $900,000 for Q4 2021, an improvement from a loss of $4.0 million in Q4 2020 [25] Business Line Data and Key Metrics Changes - The increase in net revenue was driven by higher revenue from the Los Angeles Department of Water and Power (LADWP), which offset a decline in construction management revenue due to project completions [22][23] - Construction management revenue is expected to double in 2022, increasing from approximately $70 million to $150 million [17] Market Data and Key Metrics Changes - The company has a record backlog of approximately $1.5 billion, equating to three years of work [10] - The market for reducing carbon and electrification is growing, with significant contracts awarded in New York City and Pueblo County [15][16] Company Strategy and Development Direction - The company aims for about 20% organic growth in 2022, focusing on ramping up California IOU contracts and expanding construction management activities [14][33] - Willdan is well-positioned in the clean energy space, with strong market presence in New York and California [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger post-COVID, with all contracts restarted and customer access open [8][19] - The company anticipates a slow start in Q1 2022, with a ramp-up in subsequent quarters as new utility programs begin [33] Other Important Information - The company amended its credit agreement to better align with expected cash flows and growth-related working capital needs in 2022 [30][31] - There is potential upside from over $100 million of unspent funds from LADWP, which is not included in the guidance [64] Q&A Session Summary Question: Confirmation of a back-end loaded year and cost impacts - Management confirmed that costs associated with ramping new contracts have been factored into the P&L, with no future cost risk anticipated [38][41] Question: Revenue expectations from California IOU contracts - Expected gross revenue from California IOU contracts in 2022 is approximately $50 million [46] Question: Confidence in tapering higher costs - Management indicated that labor costs are defined, and while equipment and materials costs have risen, they have been able to pass these costs onto customers without margin erosion [48][59] Question: Future revenue expectations from California - Revenue from California IOU contracts is projected to be between $150 million and $200 million in 2023 [63] Question: Potential upside from unused LADWP funds - Management acknowledged over $100 million of additional unspent money from LADWP, which could provide upside [64] Question: Impacts from Omicron and supply chain constraints - Supply chain delays have affected certain projects, but overall, the company is ahead of schedule on average [69]