Mastech Digital, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Mastech Digital, Inc. has filed its 2023 10-K report detailing financial performance, segment operations, and corporate governance for the fiscal year ending December 31, 2023.</b>

AI Summary

Mastech Digital, Inc. (MHH) filed a Annual Report (10-K) with the SEC on March 15, 2024. Mastech Digital, Inc. filed its 2023 Form 10-K on March 15, 2024, reporting on its fiscal year ended December 31, 2023. The company operates in the Services-Management Consulting Services sector, SIC code 8742. Key financial data and segment information for the fiscal years 2021, 2022, and 2023 are included in the filing. The filing details various financial instruments and commitments, including revolving credit facilities and term loans with PNC Bank, N.A. Information on fair value measurements and employee stock plans for the fiscal year ended December 31, 2023, is provided.

Why It Matters

For investors and stakeholders tracking Mastech Digital, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Mastech Digital's financial health, operational segments (Data & Analytics Services, IT Staffing Services), and strategic positioning for the past fiscal year, crucial for investors assessing performance and future outlook. The detailed financial disclosures, including debt facilities and fair value measurements, offer insights into the company's risk management and financial stability, important for lenders and stakeholders evaluating creditworthiness and market exposure.

Risk Assessment

Risk Level: medium — Mastech Digital, Inc. shows moderate risk based on this filing. The company's reliance on specific financial instruments like revolving credit facilities and term loans, along with detailed fair value measurements, indicates potential exposure to market and financial risks that require careful monitoring.

Analyst Insight

Investors should review the detailed financial statements and risk factor disclosures within the 10-K to understand Mastech Digital's financial position and operational strategies for 2024.

Key Numbers

• 2023-12-31 — Fiscal Year End (The reporting period concludes on this date.)
• 2024-03-15 — Filing Date (The 10-K report was filed on this date.)
• 001-34099 — SEC File Number (The SEC file number associated with Mastech Digital, Inc.)
• 262753540 — IRS Number (The company's IRS identification number.)

Key Players & Entities

• Mastech Digital, Inc. (company) — Filer and subject of the 10-K filing.
• PNC Bank, N.A. (company) — Lender for revolving credit facility and term loan.
• 2023-12-31 (date) — Fiscal year end date for the reported period.
• 2024-03-15 (date) — Filing date of the 10-K report.
• PA (location) — State of incorporation for Mastech Digital, Inc.
• 8742 (industry_code) — Standard Industrial Classification code for Services-Management Consulting Services.

FAQ

Risk Factors

• Financial Covenants and Debt Obligations [medium — financial]: The company is subject to various financial covenants and debt obligations related to its revolving credit facility and term loan, the breach of which could have material adverse effects.
• Dependence on Key Customers [medium — market]: A significant portion of the company's revenue may be derived from a limited number of customers, making it vulnerable to changes in demand or contract terminations from these key clients.
• Integration of Acquired Businesses [medium — operational]: The company's growth strategy involves acquisitions, and the successful integration of these businesses is critical to realizing anticipated synergies and avoiding operational disruptions.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.

Key Financial Figures

• $10 million — a wide range of organizations — from a $10 million start up to a Fortune 100 enterprise. O
• $1 billion — ly corporations with revenues exceeding $1 billion and include Fortune 500 organizations.
• $500,000 — nter of Excellence contracts, is in the $500,000 to $2.5 million range depending on the
• $2.5 million — llence contracts, is in the $500,000 to $2.5 million range depending on the scope and durati
• $4 million — cellence contracts generally range from $4 million to $83 million. From a vertical perspec
• $83 million — acts generally range from $4 million to $83 million. From a vertical perspective, customers

Filing Documents

• d636921d10k.htm (10-K) — 1778KB
• d636921dex1011.htm (EX-10.11) — 888KB
• d636921dex1012.htm (EX-10.12) — 819KB
• d636921dex1029.htm (EX-10.29) — 2KB
• d636921dex211.htm (EX-21.1) — 5KB
• d636921dex231.htm (EX-23.1) — 2KB
• d636921dex311.htm (EX-31.1) — 7KB
• d636921dex312.htm (EX-31.2) — 7KB
• d636921dex321.htm (EX-32.1) — 3KB
• d636921dex322.htm (EX-32.2) — 3KB
• d636921dex971.htm (EX-97.1) — 26KB
• g636921g85n48.jpg (GRAPHIC) — 31KB
• 0001193125-24-068609.txt (&nbsp;) — 11522KB
• mhh-20231231.xsd (EX-101.SCH) — 66KB
• mhh-20231231_cal.xml (EX-101.CAL) — 59KB
• mhh-20231231_def.xml (EX-101.DEF) — 280KB
• mhh-20231231_lab.xml (EX-101.LAB) — 563KB
• mhh-20231231_pre.xml (EX-101.PRE) — 474KB
• d636921d10k_htm.xml (XML) — 1700KB

BUSINESS

BUSINESS 2 ITEM 1A.

RISK FACTORS

RISK FACTORS 12 ITEM 1B. UNRESOLVED STAFF COMMENTS 26 ITEM 1C. CYBERSECURITY 26 ITEM 2.

PROPERTIES

PROPERTIES 29 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 29 ITEM 4. MINE SAFETY DISCLOSURES 29 PART II ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 30 ITEM 6. RESERVED 31 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 31 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 44 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 45 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 80 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 80 ITEM 9B. OTHER INFORMATION 81 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 81 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 82 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 82 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS 82 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 82 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 82 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 83

SIGNATURES

SIGNATURES 89 Table of Contents PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains statements that are not historical facts and that constitute "forward looking statements" within the meaning of such terms under the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects", "intends", "anticipates", "believes", "estimates", "assumes", "projects" and similar expressions are intended to identify such forward-looking statements. You should not rely solely on the forward-looking statements and should consider all uncertainties and risks throughout this Annual Report on Form 10-K, including those described under "Risk Factors". These statements are based on information currently available, and we undertake no obligation to update any forward-looking statement as circumstances change. Factors or events that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: changes in general U.S. and global economic conditions and economic conditions in the industries in which we operate; social, political, and economic instability, unrest, significant changes, and other circumstances beyond our control, including circumstances related to changes in the U.S. political landscape; the severity and duration of the COVID-19 pandemic; our ability to retain existing clients and obtain new clients; changes in competitive conditions; our ability to introduce new service offerings; availability of and retention of skilled technical employees and key personnel; technological changes; changes in accounting standards, rules and interpretations; the terminability of many of our contracts without penalty to our clients; changes in

BUSINESS

BUSINESS Overview Mastech Digital, Inc. (referred to in this report as "Mastech Digital", "Mastech", the "Company", "us", "our" or "we") is a provider of Digital Transformation IT Services. The Company offers data and analytics solutions; digital learning; and IT staffing services for both digital and mainstream technologies. Headquartered near Pittsburgh, Pennsylvania, we have approximately 1,300 consultants that provide services across a broad spectrum of industry verticals. We do not sell, lease or otherwise market computer software or hardware and essentially 100% of our revenue is derived from the sale of data and analytics, IT staffing and Digital Transformation services through our two reportable segments, Data and Analytics Services and IT Staffing Services. Our Data and Analytics Services segment delivers specialized data management, data engineering, customer experience consulting, data analytics and cloud services to customers globally. Each of these services can be delivered using on-site and offshore resources. Our IT Staffing Services segment combines technical expertise with business process experience to deliver a broad range of services in digital and mainstream technologies. Our digital technology services include data management and analytics, cloud, mobility, social and automation. Our Digital Transformation services also include staffing and project-based services around digital learning. Our mainstream technologies services include business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; and e-Business solutions. We work with businesses and institutions with significant IT-spend and recurring staffing needs. We also support smaller organizations with their "project focused" temporary IT staffing requirements. Additionally, we provide offshore staffing services to our U.S.-based clients and local offshore clients, and recently added engineering staffing services to our portfolio

View Full Filing

View this 10-K filing on SEC EDGAR