Mastech Digital, Inc · AMEX:MHH
Mastech Digital — Mastech Holdings — 2015 Emerging Growth Conference
23 slides from Mastech Digital's conference presentation, Sep 2, 2015
Slide 1: 2015 Emerging Growth Conference
WE STAFF I.T. NYSE MKT: MHH Exhibit 99.1 2015 Emerging Growth Conference September 2, 2015 TRUSTED TALENT PARTNER
Slide 2: Safe Harbor
2 Copyright ©2015 Mastech, Inc. All Rights Reserved. mastech.com Certain statements contained in this presentation are forward-looking statements based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “est
Slide 3: Company Profile
3 WE STAFF I.T. NYSE MKT: MHH COMPANY PROFILE TRUSTED TALENT PARTNER
Slide 4: Mastech Company Profile
4 Ticker: MHH 2014 Revenue: $113.5MM Headquarters: Pittsburgh, PA Year Founded: 1986 Employees & Consultants: 1,200 Mastech Company Profile… Growth. Experience. Stability. Scale. National Provider of IT Staffing Services in the U.S.A. • Leading U.S. IT Staffing Service Provider • 100% U.S. IT Staffi
Slide 5: Strong Organic Growth
5 Strong Organic Growth 14% CAGR – Revenue; 32% CAGR - EPS Revenue Diluted EPS $66.1 $80.5 $90.8 $106.9 $113.5 $0 $20 $40 $60 $80 $100 $120 $140 2010 2011 2012 2013 2014 $0.25 $0.29 $0.49 $0.75 $0.77 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 2010 2011 2012 2013 2014
Slide 6: Hudson IT Acquisition adds 200+ COBs
Hudson IT Acquisition adds 200+ COBs 6 Expanding Consultant Headcount 15% CAGR – Consultants on Billing Consultants on Billing 1000 2010 2011 2012 2013 2014 Q2 2015
Slide 7: Broad IT Staffing Capabilities
IT Staffing Capabilities SOA/Web Services ERP/CRM Business Intelligence & Analytics Data Warehousing & Big Data e-Business Solutions & Mobile Learning and Performance* Broad IT Staffing Capabilities
Slide 8: Strong Brand Name Wholesale Client Base
8 Strong “Brand Name” Wholesale Client Base
Slide 9: A Growing Retail Customer Base
9 “Great Logo’s”…. A Growing Retail Customer Base
Slide 10: Diverse End Markets
10 2014 Actual 2014 Pro Forma with Hudson IT Acquisition Financial & Insurance Services 27% Technology 14% Healthcare 13% Telecom 19% Government 9% Other 18% Financial & Insurance Services 26% Technology 12% Healthcare 20% Telecom 15% Government 7% Other 20% Diverse End Markets “lots of Eggs in lots
Slide 11: U.S. & India Geographic Presence
Chicago, IL Dallas, TX Fremont, CA New Delhi Bangalore Denver, CO 11 Boston, MA Orlando, FL Tampa, FL U.S. & India Geographic Presence Pittsburgh, PA: Corporate HQ Mastech employs IT consultants in nearly every state in the U.S. Corporate Headquarters Sales/Recruiting Office Recruiting Office Sales/
Slide 12: MHH Stock Price Performance
MHH Returns January 2013 – August 2015 Price +76% Special dividend +12% $4.16 $7.31 12 EPS Growth: +57% Sales Growth: +25% MHH – Stock Price Performance Sale of Healthcare Unit 5:4 Stock Split 5:4 Stock Split & $0.50 Special Cash Dividend Announced Special Dividend Record Date Hudson IT Acquisition
Slide 13: Hudson IT Acquisition
13 WE STAFF I.T. NYSE MKT: MHH HUDSON IT ACQUISITION TRUSTED TALENT PARTNER
Slide 14: Mastech-Hudson IT Acquisition
14 Mastech-Hudson IT Acquisition Transaction Summary • Target: IT Staffing Division of Hudson Global (Nasdaq:HSON) • Closed Date: June 16, 2015 • Purchase Price: $17 Million Cash • Revenue Run-Rate: $30 Million Transaction Summary • Target: IT Staffing Division of Hudson Global (Nasdaq:HSON) • Close
Slide 15: Mastech-Hudson IT: Strong Combination
15 Mastech-Hudson IT: Strong Combination Strengths: • National presence • 100% IT Staffing focus • Centralized, low-cost recruiting model (India-based) • Low operating cost structure • Ability to effectively compete in Vendor Management Systems (VMS) environment • Adept at H1-B recruiting process St
Slide 16: Acquisition Financing & Capital Availability
16 Acquisition Financing & Capital Availability • Funded $17 million acquisition of Hudson IT through cash on hand and borrowings under Mastech’s credit facility • Net Debt of $13.4 million at June 30, 2015 • Extended revolving credit facility to June 2018 • $9 million term loan ($1.8 million/year p
Slide 17: IT Staffing Industry Update
WE STAFF I.T. NYSE MKT: MHH 17 IT STAFFING INDUSTRY UPDATE TRUSTED TALENT PARTNER
Slide 18: IT Employment Growth Accelerates
Increase of 15,600 (0.3%) Increase of 15,600 (0.3%) Y/Y Increase of 193,300 (4.1%) Y/Y Increase of 193,300 (4.1%) 18 IT Employment Growth Accelerates There are more IT jobs in the US today than at any point in history Source: TechServe Alliance • IT jobs grew to 4,959,500 this July adding 193,000 IT
Slide 19: U.S. Temp. IT Staffing Revenue
U.S. Temp. IT Staffing Revenue ($B) (1997-2015P) 19 IT staffing revenue continues to increase • U.S. economic growth and increased demand for corporate IT projects is driving temporary IT staffing industry revenue to all-time highs. • IT Staffing Industry revenue projected to grow 7% per year in 201
Slide 20: IT staffing growth follows IT job growth
20 IT staffing growth follows IT job growth… • Recent demand for overall IT employment has helped fuel strong growth in the IT temporary staffing market. • From 1999 through 2013, total IT employment grew more than 41%, versus growth of 5.5% in total nonfarm employment. Source: U.S. Bureau of Labor
Slide 21: Mastech Investment Highlights
WE STAFF I.T. NYSE MKT: MHH 21 MASTECH INVESTMENT HIGHLIGHTS TRUSTED TALENT PARTNER
Slide 22: Investment Highlights
U.S. Job Market Recovery Positive for Industry U.S. Job Market Recovery Positive for Industry Fundamental Shift Towards Greater Utilization of Staffing Services Fundamental Shift Towards Greater Utilization of Staffing Services Large Consumers of Staffing Services Employing VMS / MSP Model Large Con
Slide 23: 2015 Emerging Growth Conference
WE STAFF I.T. NYSE MKT: MHH TRUSTED TALENT PARTNER 2015 Emerging Growth Conference September 2, 2015