MISTRAS Announces Third Quarter 2024 Results
MISTRAS Group (MG) reported Q3 2024 financial results with revenue growing 1.9% to $182.7 million. The company achieved net income of $6.4 million, or $0.20 per diluted share, and Adjusted EBITDA increased 11.5% to $23.3 million. International segment showed strong performance with 8.7% growth. The company revised its 2024 guidance, now expecting revenue between $725-730 million and Adjusted EBITDA between $80-82 million. Operating cash flow was $19.4 million with $13.2 million in free cash flow for Q3, while gross debt decreased to $189.7 million, its lowest level since December 2018.
MISTRAS Group (MG) ha riportato i risultati finanziari per il terzo trimestre del 2024, con un aumento del fatturato dell'1,9% a $182,7 milioni. L'azienda ha registrato un reddito netto di $6,4 milioni, ovvero $0,20 per azione diluita, e l'EBITDA rettificato è aumentato dell'11,5% a $23,3 milioni. Il segmento internazionale ha mostrato una forte performance con una crescita dell'8,7%. L'azienda ha rivisto la sua guida per il 2024, ora prevedendo ricavi tra i $725 e i $730 milioni e un EBITDA rettificato tra $80 e $82 milioni. Il flusso di cassa operativo è stato di $19,4 milioni, con un flusso di cassa libero di $13,2 milioni per il terzo trimestre, mentre il debito lordo è diminuito a $189,7 milioni, il suo livello più basso da dicembre 2018.
MISTRAS Group (MG) informó los resultados financieros del tercer trimestre de 2024, con un crecimiento de ingresos del 1.9% a $182.7 millones. La compañía logró un ingreso neto de $6.4 millones, o $0.20 por acción diluida, y el EBITDA ajustado aumentó un 11.5% a $23.3 millones. El segmento internacional mostró un rendimiento fuerte con un crecimiento del 8.7%. La compañía revisó su guía para 2024, ahora esperando ingresos entre $725 y $730 millones y un EBITDA ajustado entre $80 y $82 millones. El flujo de efectivo operativo fue de $19.4 millones con un flujo de efectivo libre de $13.2 millones para el tercer trimestre, mientras que la deuda bruta disminuyó a $189.7 millones, su nivel más bajo desde diciembre de 2018.
MISTRAS Group (MG)는 2024년 3분기 재무 결과를 보고했으며, 수익이 1.9% 증가하여 $182.7백만에 도달했습니다. 회사는 순이익 $6.4백만, 즉 희석 주당 $0.20를 기록했고, 조정 EBITDA는 11.5% 증가하여 $23.3백만에 달했습니다. 국제 부문은 8.7% 성장으로 강력한 성과를 보였습니다. 회사는 2024년 목표치를 수정하여 이제 수익을 $725-730백만, 조정 EBITDA를 $80-82백만으로 예상하고 있습니다. 운영 현금 흐름은 $19.4백만이며, 3분기 동안 자유 현금 흐름은 $13.2백만이었고, 총 부채는 $189.7백만으로 2018년 12월 이후 최저 수준에 도달했습니다.
MISTRAS Group (MG) a publié les résultats financiers du troisième trimestre 2024, avec une augmentation des revenus de 1,9% à $182,7 millions. L'entreprise a réalisé un bénéfice net de $6,4 millions, soit $0,20 par action diluée, et l'EBITDA ajusté a augmenté de 11,5% pour atteindre $23,3 millions. Le segment international a montré de bonnes performances avec une croissance de 8,7%. L'entreprise a révisé ses prévisions pour 2024, s'attendant désormais à des revenus compris entre $725 et $730 millions et un EBITDA ajusté entre $80 et $82 millions. Le flux de trésorerie d'exploitation était de $19,4 millions avec un flux de trésorerie libre de $13,2 millions pour le troisième trimestre, tandis que la dette brute a diminué à $189,7 millions, son niveau le plus bas depuis décembre 2018.
MISTRAS Group (MG) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, wobei der Umsatz um 1,9% auf $182,7 Millionen gestiegen ist. Das Unternehmen erzielte einen Nettogewinn von $6,4 Millionen bzw. $0,20 pro verwässerter Aktie, und das angepasste EBITDA stieg um 11,5% auf $23,3 Millionen. Der internationale Bereich zeigte eine starke Leistung mit einem Wachstum von 8,7%. Das Unternehmen überarbeitete seine Prognose für 2024 und erwartet nun Einnahmen zwischen $725 und $730 Millionen sowie ein angepasstes EBITDA zwischen $80 und $82 Millionen. Der operative Cashflow betrug $19,4 Millionen, mit einem freien Cashflow von $13,2 Millionen für das dritte Quartal, während die Bruttoverschuldung auf $189,7 Millionen gesenkt wurde, der niedrigste Stand seit Dezember 2018.
- Revenue increased 1.9% to $182.7 million in Q3 2024
- Net income of $6.4 million compared to loss in prior year
- Adjusted EBITDA grew 11.5% to $23.3 million
- International segment revenue up 8.7%
- Operating cash flow improved to $19.4 million in Q3
- Gross debt reduced to lowest level since December 2018
- Gross profit margin contracted 40 basis points to 29.9%
- Downward revision of 2024 guidance for revenue and EBITDA
- Oil & Gas revenue declined 3.6% in Q3
- Higher healthcare claims expenses impacted profitability
- Unanticipated buildup of accounts receivable
Insights
The Q3 2024 results show mixed performance with some positive trends. Revenue grew modestly at
The segmental performance reveals important trends in MISTRAS's market positioning. The International segment's
Quarterly Revenue Growth of
Quarterly Net Income of
Quarterly Adjusted EBITDA (non-GAAP) of
PRINCETON JUNCTION, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (MG: NYSE), a leading "one source" multinational provider of integrated technology-enabled asset protection solutions, reported financial results for its third quarter and nine months ended September 30, 2024.
Highlights of the Third Quarter 2024*
- Revenue of
$182.7 million , a1.9% increase - Gross profit expanded to
$54.6 million , with gross profit margin of29.9% - Net income of
$6.4 million and Earnings Per Diluted Share of$0.20 - Adjusted EBITDA up
11.5% to$23.3 million
Highlights of the Year-to-Date 2024*
- Revenue of
$556.9 million , a6.4% increase - Gross profit increased
7.7% to$161.8 million , with gross profit margin of29.1% , a 40 basis point expansion - Net income of
$13.8 million and Earnings Per Diluted Share of$0.44 - Adjusted EBITDA up
32.1% to$61.6 million
* All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP financial measures set forth in tables attached to this press release.
Manny Stamatakis, Interim Chief Executive Officer commented “the Company’s third quarter results were in line with our expectations, with the bottom line growing significantly faster than the top line, once again demonstrating the margin accretive actions and significant operating leverage improvements that we have instituted into our business model. Revenue was up nearly
Mr. Stamatakis continued, “I am encouraged with the progress being achieved by the collaboration between our Commercial and Operations functions, which is resulting in the successful renewal of long-term agreements with a number of our largest customers. Our continued cost discipline, strategic partnerships with our valuable portfolio of clients, and the Company’s long-term vision have us excited for the prospect of continued profitable growth for Mistras.”
Edward Prajzner, Senior Executive Vice President and Chief Financial Officer, commented, “due to our improved results and operating leverage, we generated
For the third quarter of 2024, consolidated revenue was
Third quarter 2024 gross profit increased
SG&A in the third quarter of 2024 was
The Company reported net income of
Adjusted EBITDA was
Performance by certain segments during the third quarter was as follows:
North America segment third quarter 2024 revenue was
International segment third quarter 2024 revenue was
Cash Flow and Balance Sheet
The Company’s net cash provided by operating activities was
The Company’s gross debt was
2024 Outlook
The Company has revised its guidance ranges for the full year 2024 as follows:
- Full year Revenue is expected to be between
$725 and$730 million (from$725 -$750 million previously) - Adjusted EBITDA is expected to be between
$80 and$82 million (from$84 -$89 million previously) - Free cash flow is expected to be between
$18 and$22 million (from$34 -$38 million previously)
These changes were attributable to current market conditions, project pushouts and an unanticipated buildup of accounts receivable.
Preliminary 2025 Outlook
Given the expected growth in the Company’s higher margin businesses and continued operating leverage improvements, the Company anticipates a meaningful improvement in its net income, with a low double-digit expansion in Adjusted EBITDA and a low single-digit organic revenue growth for fiscal 2025.
Conference Call
In connection with this release, MISTRAS will hold a conference call on October 31, 2024, at 9:00 a.m. (Eastern).
To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website at www.mistrasgroup.com
Note there is a new process to participate in the live question and answer session. Individuals wishing to participate may preregister at: https://register.vevent.com/register/BIf848f0928520406c928ea91abde4515a
Upon registering, a dial-in number and unique PIN will be provided to join the conference call. Following the conference call, an archived webcast of the event will be available for one year by visiting the Investor Relations section of MISTRAS Group’s website.
About MISTRAS Group, Inc. - One Source for Asset Protection Solutions®
MISTRAS Group, Inc. (NYSE: MG) is a leading "one source" multinational provider of integrated technology-enabled asset protection solutions, helping to maximize the safety and operational uptime for civilization’s most critical industrial and civil assets.
Backed by an innovative, data-driven asset protection portfolio, proprietary technologies, strong commitment to Environmental, Social, and Governance (ESG) initiatives, and a decades-long legacy of industry leadership, MISTRAS leads clients in the oil and gas, aerospace and defense, renewable and nonrenewable power, civil infrastructure, and manufacturing industries towards achieving operational and environmental excellence. By supporting these organizations that help fuel our vehicles and power our society; inspecting components that are trusted for commercial, defense, and space craft; building real-time monitoring equipment to enable safe travel across bridges; and helping to propel sustainability, MISTRAS helps the world at large.
MISTRAS enhances value for its clients by integrating asset protection throughout supply chains and centralizing integrity data through a suite of Industrial IoT-connected digital software and monitoring solutions. The company’s core capabilities also include non-destructive testing field and in-line inspections enhanced by advanced robotics, laboratory quality control and assurance testing, sensing technologies and NDT equipment, asset and mechanical integrity engineering services, and light mechanical maintenance and access services.
For more information about how MISTRAS helps protect civilization’s critical infrastructure and the environment, visit https://www.mistrasgroup.com/.
MEDIA CONTACT:
Nestor S. Makarigakis
Group Vice-President of Marketing and Communications
+1 (609) 716-4000 | marcom@mistrasgroup.com
Forward-Looking and Cautionary Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our 2024 outlook and preliminary 2025 outlook, guidance, costs savings and other benefits we expect to realize from our previously announced Project Phoenix initiatives and additional operational and strategic actions that we expect or seek to take in furtherance of our strategies and activities to enhance our financial results and future growth. Such forward-looking statements relate to MISTRAS' financial results and estimates, products and services, business model, Project Phoenix initiatives, operational and strategic initiatives to improve operating leverage, strategy, growth opportunities, profitability and competitive position, and other matters. These forward-looking statements generally use words such as "future," "possible," "potential," "targeted," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," "project," "will," "may," "should," "could," "would" and other similar words and phrases. Such statements are not guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. A list, description and discussion of these and other risks and uncertainties can be found in the "Risk Factors" section of the Company's 2023 Annual Report on Form 10-K filed on March 11, 2024, as updated by our reports on Form 10-Q and Form 8-K. The forward-looking statements are made as of the date hereof, and MISTRAS undertakes no obligation to update such statements as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Measures
In addition to financial information prepared in accordance with generally accepted accounting principles in the U.S. (GAAP), this press release also contains adjusted financial measures that are not prepared in accordance with GAAP and that we believe provide investors and management with supplemental information relating to the Company’s operating performance and trends that facilitate comparisons between periods and with respect to trends and projected information. The term "Adjusted EBITDA" used in this release is a financial measure not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, certain acquisition related costs (including transaction due diligence costs and adjustments to the fair value of contingent consideration), foreign exchange (gain) loss, non-cash impairment charges, reorganization and other costs and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the term “free cash flow”, a non-GAAP financial measure the Company defines as cash provided by operating activities less capital expenditures (which is classified as an investing activity). The Company additionally uses the terms: “Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP)”, “Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measure. This press release also includes the term “net debt”, a non-GAAP financial measure which the Company defines as the sum of the current and long-term portions of long term debt, less cash and cash equivalents. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are also set forth in tables attached to this press release. Each of these non-GAAP financial measures has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measures derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measures used in this press release may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly-titled measures used by other companies.
Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | |||||||
September 30, 2024 | December 31, 2023 | ||||||
ASSETS | (unaudited) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 20,360 | $ | 17,646 | |||
Accounts receivable, net | 144,104 | 132,847 | |||||
Inventories | 14,510 | 15,283 | |||||
Prepaid expenses and other current assets | 14,353 | 14,580 | |||||
Total current assets | 193,327 | 180,356 | |||||
Property, plant and equipment, net | 79,852 | 80,972 | |||||
Intangible assets, net | 41,504 | 43,994 | |||||
Goodwill | 185,872 | 187,354 | |||||
Deferred income taxes | 5,641 | 2,316 | |||||
Other assets | 45,485 | 39,784 | |||||
Total assets | $ | 551,681 | $ | 534,776 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 13,272 | $ | 17,032 | |||
Accrued expenses and other current liabilities | 85,623 | 84,331 | |||||
Current portion of long-term debt | 10,711 | 8,900 | |||||
Current portion of finance lease obligations | 4,594 | 5,159 | |||||
Income taxes payable | 964 | 1,101 | |||||
Total current liabilities | 115,164 | 116,523 | |||||
Long-term debt, net of current portion | 178,989 | 181,499 | |||||
Obligations under finance leases, net of current portion | 11,154 | 11,261 | |||||
Deferred income taxes | 3,781 | 2,552 | |||||
Other long-term liabilities | 37,050 | 32,438 | |||||
Total liabilities | 346,138 | 344,273 | |||||
Equity | |||||||
Preferred stock, 10,000,000 shares authorized | — | — | |||||
Common stock, | 385 | 305 | |||||
Additional paid-in capital | 250,016 | 247,165 | |||||
Accumulated deficit | (15,177 | ) | (28,942 | ) | |||
Accumulated other comprehensive loss | (30,020 | ) | (28,336 | ) | |||
Total Mistras Group, Inc. stockholders’ equity | 205,204 | 190,192 | |||||
Non-controlling interests | 339 | 311 | |||||
Total equity | 205,543 | 190,503 | |||||
Total liabilities and equity | $ | 551,681 | $ | 534,776 | |||
Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ | 182,694 | $ | 179,354 | $ | 556,909 | $ | 523,399 | |||||||
Cost of revenue | 122,392 | 118,812 | 377,570 | 355,304 | |||||||||||
Depreciation | 5,725 | 6,160 | 17,556 | 17,914 | |||||||||||
Gross profit | 54,577 | 54,382 | 161,783 | 150,181 | |||||||||||
Selling, general and administrative expenses | 38,872 | 39,537 | 121,018 | 123,844 | |||||||||||
Reorganization and other costs | 2,143 | 2,702 | 4,218 | 6,017 | |||||||||||
Goodwill impairment charges | — | 13,799 | — | 13,799 | |||||||||||
Legal settlement and insurance recoveries, net | (868 | ) | — | (808 | ) | 150 | |||||||||
Research and engineering | 241 | 438 | 816 | 1,428 | |||||||||||
Depreciation and amortization | 2,331 | 2,588 | 7,170 | 7,556 | |||||||||||
Acquisition-related expense, net | — | — | 1 | 5 | |||||||||||
Income (loss) from operations | 11,858 | (4,682 | ) | 29,368 | (2,618 | ) | |||||||||
Other income | (1,479 | ) | — | (1,479 | ) | — | |||||||||
Interest expense | 4,303 | 4,167 | 13,145 | 12,093 | |||||||||||
Income (loss) before provision (benefit) for income taxes | 9,034 | (8,849 | ) | 17,702 | (14,711 | ) | |||||||||
Provision for income taxes | 2,618 | 1,489 | 3,909 | 229 | |||||||||||
Net Income (Loss) | 6,416 | (10,338 | ) | 13,793 | (14,940 | ) | |||||||||
Less: net income (loss) attributable to noncontrolling interests, net of taxes | 15 | (40 | ) | 28 | 7 | ||||||||||
Net Income (Loss) attributable to Mistras Group, Inc. | $ | 6,401 | $ | (10,298 | ) | $ | 13,765 | $ | (14,947 | ) | |||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | 0.21 | $ | (0.34 | ) | $ | 0.45 | $ | (0.49 | ) | |||||
Diluted | $ | 0.20 | $ | (0.34 | ) | $ | 0.44 | $ | (0.49 | ) | |||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 31,002 | 30,402 | 30,895 | 30,277 | |||||||||||
Diluted | 31,660 | 30,402 | 31,513 | 30,277 | |||||||||||
Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenues | |||||||||||||||
North America | $ | 149,845 | $ | 148,814 | $ | 456,588 | $ | 431,295 | |||||||
International | 33,662 | 30,980 | 100,972 | 90,664 | |||||||||||
Products and Systems | 3,276 | 2,829 | 9,860 | 9,897 | |||||||||||
Corporate and eliminations | (4,089 | ) | (3,269 | ) | (10,511 | ) | (8,457 | ) | |||||||
$ | 182,694 | $ | 179,354 | $ | 556,909 | $ | 523,399 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Gross profit | |||||||||||||||
North America | $ | 42,487 | $ | 44,773 | $ | 126,813 | $ | 121,088 | |||||||
International | 10,139 | 8,481 | 29,667 | 24,247 | |||||||||||
Products and Systems | 1,933 | 1,096 | 5,233 | 4,773 | |||||||||||
Corporate and eliminations | 18 | 32 | 70 | 73 | |||||||||||
$ | 54,577 | $ | 54,382 | $ | 161,783 | $ | 150,181 | ||||||||
Mistras Group, Inc. and Subsidiaries Unaudited Revenues by Category (in thousands) | |||||||||||||||
Revenue by industry was as follows: | |||||||||||||||
Three Months Ended September 30, 2024 | North America | International | Products | Corp/Elim | Total | ||||||||||
Oil & Gas | $ | 90,460 | $ | 9,040 | $ | 3 | $ | — | $ | 99,503 | |||||
Aerospace & Defense | 16,181 | 5,663 | 42 | — | 21,886 | ||||||||||
Industrials | 12,285 | 6,749 | 478 | — | 19,512 | ||||||||||
Power Generation & Transmission | 8,029 | 3,081 | 544 | — | 11,654 | ||||||||||
Other Process Industries | 7,836 | 3,900 | 79 | — | 11,815 | ||||||||||
Infrastructure, Research & Engineering | 5,189 | 2,744 | 797 | — | 8,730 | ||||||||||
Petrochemical | 3,806 | 198 | — | — | 4,004 | ||||||||||
Other | 6,059 | 2,287 | 1,333 | (4,089 | ) | 5,590 | |||||||||
Total | $ | 149,845 | $ | 33,662 | $ | 3,276 | $ | (4,089 | ) | $ | 182,694 | ||||
Three Months Ended September 30, 2023 | North America | International | Products | Corp/Elim | Total | |||||||||||
Oil & Gas | $ | 94,390 | $ | 8,827 | $ | 35 | $ | — | $ | 103,252 | ||||||
Aerospace & Defense | 14,240 | 5,778 | 47 | — | 20,065 | |||||||||||
Industrials | 10,325 | 6,018 | 310 | — | 16,653 | |||||||||||
Power Generation & Transmission | 7,388 | 1,653 | 696 | — | 9,737 | |||||||||||
Other Process Industries | 6,933 | 2,864 | (5 | ) | — | 9,792 | ||||||||||
Infrastructure, Research & Engineering | 6,042 | 2,383 | 1,070 | — | 9,495 | |||||||||||
Petrochemical | 3,313 | 586 | — | — | 3,899 | |||||||||||
Other | 6,183 | 2,871 | 676 | (3,269 | ) | 6,461 | ||||||||||
Total | $ | 148,814 | $ | 30,980 | $ | 2,829 | $ | (3,269 | ) | $ | 179,354 | |||||
Nine Months Ended September 30, 2024 | North America | International | Products | Corp/Elim | Total | ||||||||||
Oil & Gas | $ | 289,843 | $ | 31,841 | $ | 240 | $ | — | $ | 321,924 | |||||
Aerospace & Defense | 48,152 | 18,092 | 100 | — | 66,344 | ||||||||||
Industrials | 33,047 | 18,480 | 1,478 | — | 53,005 | ||||||||||
Power Generation & Transmission | 18,953 | 6,017 | 1,569 | — | 26,539 | ||||||||||
Other Process Industries | 26,132 | 12,337 | 155 | — | 38,624 | ||||||||||
Infrastructure, Research & Engineering | 14,286 | 7,762 | 1,901 | — | 23,949 | ||||||||||
Petrochemical | 11,467 | 900 | — | — | 12,367 | ||||||||||
Other | 14,708 | 5,543 | 4,417 | (10,511 | ) | 14,157 | |||||||||
Total | $ | 456,588 | $ | 100,972 | $ | 9,860 | $ | (10,511 | ) | $ | 556,909 |
Nine Months Ended September 30, 2023 | North America | International | Products | Corp/Elim | Total | ||||||||||
Oil & Gas | $ | 281,663 | $ | 26,291 | $ | 87 | $ | — | $ | 308,041 | |||||
Aerospace & Defense | 41,516 | 15,894 | 275 | — | 57,685 | ||||||||||
Industrials | 30,693 | 18,274 | 1,336 | — | 50,303 | ||||||||||
Power Generation & Transmission | 17,834 | 4,840 | 3,189 | — | 25,863 | ||||||||||
Other Process Industries | 24,906 | 10,567 | 73 | — | 35,546 | ||||||||||
Infrastructure, Research & Engineering | 12,696 | 6,547 | 2,759 | — | 22,002 | ||||||||||
Petrochemical | 10,027 | 887 | — | — | 10,914 | ||||||||||
Other | 11,960 | 7,364 | 2,178 | (8,457 | ) | 13,045 | |||||||||
Total | $ | 431,295 | $ | 90,664 | $ | 9,897 | $ | (8,457 | ) | $ | 523,399 | ||||
Oil & Gas Revenue by sub-category was as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Oil and Gas Revenue by sub-category | |||||||||||
Upstream | $ | 43,835 | $ | 38,041 | $ | 127,951 | $ | 116,941 | |||
Midstream | 21,545 | 26,215 | 68,229 | 74,739 | |||||||
Downstream | 34,123 | 38,996 | 125,744 | 116,361 | |||||||
Total | $ | 99,503 | $ | 103,252 | $ | 321,924 | $ | 308,041 | |||
Consolidated Revenue by type was as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Field Services | $ | 127,246 | $ | 122,717 | $ | 388,129 | $ | 348,501 | |||
Shop Laboratories | 15,014 | 14,840 | 49,147 | 42,216 | |||||||
Data Analytical Solutions | 17,876 | 17,997 | 51,757 | 52,916 | |||||||
Other | 22,558 | 23,800 | 67,876 | 79,766 | |||||||
Total | $ | 182,694 | $ | 179,354 | $ | 556,909 | $ | 523,399 | |||
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) before Special Items (non-GAAP) (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
North America: | |||||||||||||||
Income from operations (GAAP) | $ | 17,455 | $ | 18,004 | $ | 49,742 | $ | 39,719 | |||||||
Reorganization and other costs | 835 | 35 | 927 | 574 | |||||||||||
Legal settlement and insurance recoveries, net | (868 | ) | — | (808 | ) | 150 | |||||||||
Income from operations before special items (non-GAAP) | $ | 17,422 | $ | 18,039 | $ | 49,861 | $ | 40,443 | |||||||
International: | |||||||||||||||
Income (loss) from operations (GAAP) | $ | 1,778 | $ | (12,970 | ) | $ | 4,548 | $ | (13,031 | ) | |||||
Goodwill Impairment charges | — | 13,799 | — | 13,799 | |||||||||||
Reorganization and other costs, net | 147 | 33 | 410 | 228 | |||||||||||
Income from operations before special items (non-GAAP) | $ | 1,925 | $ | 862 | $ | 4,958 | $ | 996 | |||||||
Products and Systems: | |||||||||||||||
Income (loss) from operations (GAAP) | $ | 670 | $ | (557 | ) | $ | 1,479 | $ | (78 | ) | |||||
Reorganization and other costs | 182 | 189 | 184 | 189 | |||||||||||
Income (loss) from operations before special items (non-GAAP) | $ | 852 | $ | (368 | ) | $ | 1,663 | $ | 111 | ||||||
Corporate and Eliminations: | |||||||||||||||
Loss from operations (GAAP) | $ | (8,045 | ) | $ | (9,159 | ) | $ | (26,401 | ) | $ | (29,228 | ) | |||
Reorganization and other costs | 979 | 2,445 | 2,697 | 5,026 | |||||||||||
Acquisition-related expense, net | — | — | 1 | 5 | |||||||||||
Loss from operations before special items (non-GAAP) | $ | (7,066 | ) | $ | (6,714 | ) | $ | (23,703 | ) | $ | (24,197 | ) | |||
Total Company: | |||||||||||||||
Income (loss) from operations (GAAP) | $ | 11,858 | $ | (4,682 | ) | $ | 29,368 | $ | (2,618 | ) | |||||
Goodwill Impairment charges | — | 13,799 | — | 13,799 | |||||||||||
Reorganization and other costs | 2,143 | 2,702 | 4,218 | 6,017 | |||||||||||
Legal settlement and insurance recoveries, net | (868 | ) | — | (808 | ) | 150 | |||||||||
Acquisition-related expense, net | — | — | 1 | 5 | |||||||||||
Income from operations before special items (non-GAAP) | $ | 13,133 | $ | 11,819 | $ | 32,779 | $ | 17,353 | |||||||
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Gross Debt (GAAP) to Net Debt (non-GAAP) (in thousands) | |||||||
September 30, 2024 | December 31, 2023 | ||||||
Current portion of long-term debt | $ | 10,711 | $ | 8,900 | |||
Long-term debt, net of current portion | 178,989 | 181,499 | |||||
Total Gross Debt (GAAP) | 189,700 | 190,399 | |||||
Less: Cash and cash equivalents | (20,360 | ) | (17,646 | ) | |||
Total Net Debt (non-GAAP) | $ | 169,340 | $ | 172,753 | |||
Mistras Group, Inc. and Subsidiaries Unaudited Summary Cash Flow Information (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net cash provided by (used in): | |||||||||||||||
Operating activities | $ | 19,356 | $ | (7,637 | ) | $ | 24,471 | $ | 10,684 | ||||||
Investing activities | (5,935 | ) | (5,359 | ) | (17,152 | ) | (15,170 | ) | |||||||
Financing activities | (11,508 | ) | 9,348 | (6,247 | ) | (1,839 | ) | ||||||||
Effect of exchange rate changes on cash | 1,270 | (1,599 | ) | 1,642 | (1,411 | ) | |||||||||
Net change in cash and cash equivalents | $ | 3,183 | $ | (5,247 | ) | $ | 2,714 | $ | (7,736 | ) | |||||
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net cash provided by operating activities (GAAP) | $ | 19,356 | $ | (7,637 | ) | $ | 24,471 | $ | 10,684 | ||||||
Less: | |||||||||||||||
Purchases of property, plant and equipment | (4,716 | ) | (4,602 | ) | (14,315 | ) | (14,403 | ) | |||||||
Purchases of intangible assets | (1,428 | ) | (1,046 | ) | (3,832 | ) | (1,868 | ) | |||||||
Free cash flow (non-GAAP) | $ | 13,212 | $ | (13,285 | ) | $ | 6,324 | $ | (5,587 | ) | |||||
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP) (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net Income (loss) (GAAP) | $ | 6,416 | $ | (10,338 | ) | $ | 13,793 | $ | (14,940 | ) | |||||
Less: Net income attributable to non-controlling interests, net of taxes | 15 | (40 | ) | 28 | 7 | ||||||||||
Net Income (loss) attributable to Mistras Group, Inc. | $ | 6,401 | $ | (10,298 | ) | $ | 13,765 | $ | (14,947 | ) | |||||
Interest expense | 4,303 | 4,167 | 13,145 | 12,093 | |||||||||||
Provision for income taxes | 2,618 | 1,489 | 3,909 | 229 | |||||||||||
Depreciation and amortization | 8,056 | 8,748 | 24,726 | 25,470 | |||||||||||
Share-based compensation expense | 1,350 | 1,010 | 4,114 | 3,649 | |||||||||||
Other income | (1,479 | ) | — | (1,479 | ) | — | |||||||||
Acquisition-related expense | — | — | 1 | 5 | |||||||||||
Reorganization and other related costs, net | 2,143 | 2,702 | 4,218 | 6,017 | |||||||||||
Goodwill Impairment charges | — | 13,799 | — | 13,799 | |||||||||||
Legal settlement and insurance recoveries, net | (868 | ) | — | (808 | ) | 150 | |||||||||
Foreign exchange (gain) loss | 765 | (721 | ) | (23 | ) | 149 | |||||||||
Adjusted EBITDA (non-GAAP) | $ | 23,289 | $ | 20,896 | $ | 61,568 | $ | 46,614 | |||||||
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP) (dollars in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) attributable to Mistras Group, Inc. (GAAP) | $ | 6,401 | $ | (10,298 | ) | $ | 13,765 | $ | (14,947 | ) | |||||
Goodwill Impairment charges | — | 13,799 | — | 13,799 | |||||||||||
Reorganization and other costs | 2,143 | 2,702 | 4,218 | 6,017 | |||||||||||
Legal settlement and insurance recoveries, net | (868 | ) | — | (808 | ) | 150 | |||||||||
Other income | (1,479 | ) | — | (1,479 | ) | — | |||||||||
Acquisition-related expense, net | — | — | 1 | 5 | |||||||||||
Special Items Total | $ | (204 | ) | $ | 16,501 | $ | 1,932 | $ | 19,971 | ||||||
Tax impact on special items | 58 | (653 | ) | (463 | ) | (1,468 | ) | ||||||||
Special items, net of tax | $ | (146 | ) | $ | 15,848 | $ | 1,469 | $ | 18,503 | ||||||
Net income attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP) | $ | 6,255 | $ | 5,550 | $ | 15,234 | $ | 3,556 | |||||||
Diluted EPS (GAAP)(1) | $ | 0.20 | $ | (0.34 | ) | $ | 0.44 | $ | (0.49 | ) | |||||
Special items, net of tax | — | 0.52 | 0.05 | 0.61 | |||||||||||
Diluted EPS Excluding Special Items (non-GAAP) | $ | 0.20 | $ | 0.18 | $ | 0.49 | $ | 0.12 |
____________________
(1) For the three and nine months ended September 30, 2023, 1,508,255 and 926,224 shares related to restricted stock were excluded from the calculation of diluted EPS due to the net loss for the periods, respectively.
FAQ
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