ANAHEIM, Calif. - Willdan Group , Inc. (NASDAQ: NASDAQ:WLDN) has been awarded a $4.5 million contract to manage building division operations and provide fire plan inspection review services for the City of Bellflower over the next three years. This partnership aims to enhance the city's building and safety services, a critical component for the residents and businesses of Bellflower.
City Manager Ryan Smoot expressed confidence in Willdan's ability to deliver expert and personalized services, ensuring a smooth transition for the community. Willdan's CEO, Mike Bieber, acknowledged the importance of the contract in expanding the company's presence in Los Angeles County and expressed eagerness to support Bellflower's ongoing and future requirements.
The City of Bellflower, located in Southeast Los Angeles County, is home to approximately 79,190 residents and 4,000 businesses as per the 2020 census. The city is known for its commitment to quality governance, services, and features such as award-winning public schools and a bustling downtown area.
Willdan, a nationwide provider of professional, technical, and consulting services, caters to a diverse clientele including utilities, government agencies, and private industry sectors. The company's services encompass a wide range of disciplines like electric grid solutions, energy efficiency and sustainability, energy policy planning and advisory, engineering and planning, and municipal financial consulting.
In the context of this announcement, Willdan has made forward-looking statements regarding the contract's expected benefits to the company's growth. However, the company cautions that actual results could vary due to various risk factors, as detailed periodically in its filings with the Securities and Exchange Commission.
This contractual development between Willdan and the City of Bellflower is based on a press release statement and reflects the company's continued expansion in the municipal services market.
In other recent news, Willdan Group has made significant strides in its financial performance and executive restructuring. The company's third-quarter financials showed a 19% year-over-year increase in contract revenue to $158 million, and adjusted EBITDA grew by 50% to $15.2 million. Adjusted earnings per share also saw a substantial rise, nearly doubling to $0.73. These positive results led Willdan Group to raise its full-year financial targets, now expecting net revenue between $285 million and $295 million, and adjusted EBITDA of $52 million to $54 million.
In addition to its financial performance, Willdan Group has restructured its executive compensation agreements. The new employment agreements cover the company's President and CEO Michael Bieber, Executive Vice President and CFO Creighton K. Early, and Executive Vice President and General Counsel, Micah Chen. These changes are part of the company's efforts to align its leadership team's interests with those of shareholders and ensure stability in its executive ranks.
Among these recent developments, Willdan Group has been expanding its workforce and winning significant contracts. The company's workforce has grown to over 1,700 employees, and it has secured a $103 million project with Clark County School District and a $9 million contract with the New York Power Authority. These are key elements of Willdan Group's growth strategy, which includes a focus on energy efficiency and decarbonization.
InvestingPro Insights
Willdan Group's recent $4.5 million contract with the City of Bellflower aligns well with the company's strong financial performance and growth trajectory. According to InvestingPro data, Willdan's revenue growth stands at an impressive 23.47% for the last twelve months as of Q3 2023, with quarterly revenue growth at 19.22%. This new contract is likely to contribute positively to these already robust figures.
The company's ability to secure such contracts is reflected in its market performance. InvestingPro data shows that Willdan has delivered a high return over the last year, with a one-year price total return of 110.38%. This exceptional performance is further underscored by a year-to-date price total return of 94.23%, indicating strong investor confidence in the company's business model and growth prospects.
An InvestingPro Tip highlights that Willdan operates with a moderate level of debt, which suggests the company has the financial flexibility to take on and execute new projects like the Bellflower contract without overextending itself. Additionally, another InvestingPro Tip notes that the company's liquid assets exceed short-term obligations, indicating a healthy financial position to support its operational expansion.
For investors interested in a deeper analysis of Willdan Group, InvestingPro offers 7 additional tips that could provide valuable insights into the company's financial health and future prospects.
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