Willdan Group, Inc. · NASDAQ:WLDN
Willdan — Seventh Annual D.A. Davidson Engineering & Construction Conference (September 2008)
27 slides from Willdan's conference presentation, Sep 19, 2008
Slide 1: Seventh Annual D.A. Davidson Engineering & Construction Conference
September 19, 2008 Seventh Annual D.A. Davidson Engineering & Construction Conference Engineering Geotechnical Environmental Sustainability Financial Homeland Security Presenters Tom Brisbin, CEO Kimberly Gant, CFO
Slide 2: Safe Harbor Statement
| 2 Safe Harbor Statement Statements in this presentation that are not purely historical, including statements regarding Willdan Group’s intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking statements within the mea
Slide 3: Agenda
| 3 Agenda • Who We Are • Business Mix • How We Compete • Seasoned Management Team • Drivers of Demand • 2008 Strategic Priorities • Financial Information • Opportunities for Growth • Key Takeaways • Q&A
Slide 4: Who We Are
| 4 Who We Are • Founded in 1964 • Specialized outsourced solutions for public agencies – Engineering – Financial Services – Homeland Security • Over 800 clients • 600 employees Kanan Road Interchange—Agoura Hills, CA
Slide 5: Business Mix
| 5 Business Mix Cross-Selling Over 150 clients have worked with two or more of our operating divisions Second Quarter 2008 Homeland Security Services 3% Engineering Services 77% Financial Services 20%
Slide 6: Engineering
| 6 • City Engineering • Building and Safety Services • Structural Engineering • Traffic Engineering • Geotechnical Engineering • Sustainability/Energy Efficiency* • Environmental* • Project /Construction Management* Engineering * = New service offerings
Slide 7: Financial Services
| 7 Financial Services • Financial and Economic Consulting • Special District Formation and Administration • Federal Compliance Services
Slide 8: Homeland Security
| 8 Homeland Security • Public Safety and Management Consulting Services • Training • Terrorism and Threat Vulnerability Assessment • Emergency Operations Planning
Slide 9: How We Compete
| 9 How We Compete • Long-standing relationships with agency officials • Strong reputation for specialized expertise and quality services • Broad service offerings; cross-selling • Knowledge of public agency regulation and compliance issues • Ability to provide public agencies with: – Flexibility –
Slide 10: Relationships Drive Our Business
| 10 Relationships Drive Our Business • Extensive client base – Over 800 distinct clients – Approximately 2,500 active projects at any given time • Low concentration risk – No client over 2% of contract revenue • Long-term relationships – Local knowledge and relationships drive revenue – Personal re
Slide 11: Office Locations
| 11 Office Locations = Willdan = Intergy
Slide 12: Client Locations
| 12 Client Locations = Willdan Clients
Slide 13: Seasoned Management Team
| 13 Industry Experience Years with Company Win Westfall Chairman of the Board 40+ 10 Tom Brisbin President and Chief Executive Officer 30+ 1 Kimberly Gant Senior Vice President and Chief Financial Officer 20+ 1 Marc Tipermas President of National Programs 30+ 1 Crescent Wells Vice President, Market
Slide 14: Drivers of Demand
| 14 Drivers of Demand • Ongoing terrorism threat • Emergency response training • Management consulting • Decline in skilled labor pool • New GASB requirements • Sustainability/ Energy efficiency • Aging caused by elements • Deferred maintenance and upgrades • Natural disasters • Places additional d
Slide 15: 2008 Strategic Priorities
| 15 2008 Strategic Priorities • Diversify/expand service offerings to provide market-driven opportunities for growth – Sustainability/Energy Efficiency – Environmental – Homeland Security – Construction Management – Financial Services – Management Consulting • Align resources • Unify branding
Slide 16: Recent Strategic Acquisition
| 16 Recent Strategic Acquisition • Energy Efficiency • Water Conservation • Sustainability • IT Applications for the Utility Industry
Slide 17: Existing Client Relationships and Recent Significant Wins
| 17 Engineering • LAWA • OCTA* • City of Moreno Valley* Geotechnical • City of Moreno Valley* Sustainability • Southern California Edison • California Communities Environmental • City of Livermore • Northern California Redevelopment Agency Financial Consulting • City of Sacramento • City of Fort Wo
Slide 18: Conservative Capital Structure
| 18 Conservative Capital Structure $30.2 $21.2 $3.3 $13.7 $15.0 $16.5 $36.7 $26.3 $9.4 $7.2 $5.2 ($15.3) ($19.0) ($6.8) ($1.2) $4.5 $37.2 $34.5 (30) (15) 0 15 30 45 2003 2004 2005 2006 2007 Jun-08 Working Capital Net Debt Total Capitalization $ in millions
Slide 19: Revenue
| 19 CAGR 2003–2007 = 9.5% 2008 Revenue Estimate: $72-$75 million $ in millions Organic Revenue $78.3 $78.8 $58.3 $54.5 $67.3 $35.6 0 15 30 45 60 75 90 105 2003 2004 2005 2006 2007 Jun-08
Slide 20: Adjusted EBITDA
| 20 (a)We define Adjusted EBITDA as net income plus net interest expense, income tax expense (benefit), depreciation and amortization, loss (gains) on sales of assets, accrued expenses related to a litigation matter and a one-time stock-based compensation expense, less life insurance proceeds. $ in
Slide 21: Adjusted EBITDA Reconciliation
| 21 We define Adjusted EBITDA as net income plus net interest expense, income tax expense (benefit), depreciation and amortization, loss (gains) on sales of assets, accrued expenses related to a litigation matter and a one-time stock-based compensation expense, less life insurance proceeds. Adjuste
Slide 22: Cash Flow from Operations
| 22 $ in millions Cash Flow from Operations $2.6 $3.9 $4.6 $6.3 ($0.3) $0.9 (2.0) 0.0 2.0 4.0 6.0 8.0 2003 2004 2005 2006 2007 Jun-08
Slide 23: Opportunities for Growth
| 23 Capitalize on increased focus on infrastructure and acceptance of outsourcing Leverage centralized business development: selling more to existing clients Target larger- and longer-term opportunities Enter new geographic markets Pursue strategic mergers and acquisitions Expand service offerings
Slide 24: Key Takeaways
| 24 Key Takeaways • 40-year history of relationships, reputation and experience • Leader in specialized niche markets • Operational focus: – Diversify service platform – Expand geographic footprint – Cross-sell services • Financial focus: – Top-line growth – Bottom-line profitability – Working capi
Slide 25: Questions and Answers
| 25 Questions and Answers
Slide 26: Thank You
| 26 Thank You
Slide 27: Seventh Annual D.A. Davidson Engineering & Construction Conference
September 19, 2008 Seventh Annual D.A. Davidson Engineering & Construction Conference Engineering Geotechnical Environmental Sustainability Financial Homeland Security Presenters Tom Brisbin, CEO Kimberly Gant, CFO