Mistras Delivers Strong First Quarter FY'14 Results and Affirms Full Year Guidance
08 Outubro 2013 - 5:01PM
Mistras Group, Inc. (NYSE:MG), a leading "one source" global
provider of technology-enabled asset protection solutions, today
reported financial results for the first quarter of fiscal 2014,
which ended August 31, 2013. During the first quarter, the Company
had revenue of $135.8 million, an increase of 20% compared to
revenue of $113.4 million for the prior year period. Net income for
the first quarter was $5.6 million, or $0.19 per diluted share
compared to net income of $4.3 million or $0.15 per diluted share
in the prior year period. Adjusted EBITDA* was $16.0 million in the
quarter compared to $15.5 million in the prior year period. The
first quarter of fiscal 2014 includes a favorable acquisition
adjustment of $2.1 million (pre-tax).
First Quarter Fiscal 2014 Financial
Highlights:
- Revenues of $135.8 million grew 20% versus the prior year,
consisting of 5% organic growth and 16% acquisition growth. The
Services segment achieved 16% organic revenue growth through the
expansion of existing evergreen customers as well as new customers
in Oil & Gas (refining and pipeline), Aerospace, Power
Generation and Industrial markets, and was complemented by advanced
service revenues increasing 15% in the quarter from the prior year.
The International segment grew revenues by 55%, led by 69%
acquisition growth which was partially offset by a 14% decrease in
organic revenue due to unscheduled product installation delays,
timing of customer turnarounds and cutbacks in Brazil's Oil &
Gas market. Products & Systems revenues were down 31%. The
prior year included large product system sales for commercial &
military aerospace suppliers as well as sales of infrastructure
based systems that were not replaced in the current quarter due to
economic uncertainty and U.S. budget sequester impacts in those
industries.
- Gross Profit grew 16% to $39.3 million. Gross Margin was 28.9%
versus 29.7% in the prior year. The Services segment margin was
27.9% as compared to 25.4% due to a favorable change in the mix of
project work and higher margin advanced services. The International
segment's margin was 26.8% as compared to 29.0%, mainly impacted by
the mix of new acquisitions having lower margin traditional NDT
services. Products & Systems' margin was 36.2% as compared to
55.0%, impacted primarily by the decrease in revenues due to
uncertainty raised with the U.S. budget sequester and unscheduled
delays of system installations for major projects in the North Sea
and Russia.
- Net cash provided by operating activities was $11.5
million.
Sotirios Vahaviolos, Mistras Chairman and Chief Executive
Officer stated, "Although difficult economic conditions persist in
Europe and South America, along with guarded capital spending in
the U.S., we are encouraged by signs of improvement in the U.S.
Services market."
"We were very pleased to see our revenues in the Oil & Gas
industry increase a healthy 21% in the quarter from the prior year
and organic growth of 16% by our Services segment. All indications
are showing that maintenance spending for the North American Oil
& Gas industry is expected to continue to increase for the next
several years, driven by the need for improved safety oversight and
meeting current and new environmental regulations. This, combined
with significant new global contract awards that included
evergreens in the Oil & Gas, Chemical and Power Generation
industries, provides the support that Mistras is poised for a
strong fiscal 2014."
Dr. Vahaviolos also added, "from an operational structure
perspective, we continue to reengineer our management and
businesses practices globally, ensuring that we are creating and
delivering value for our customers and Mistras. Management believes
that the Services improvements will be followed by similar results
in the International Segment."
Outlook and Guidance for Fiscal 2014
The Company is affirming its previously issued guidance for
fiscal 2014 revenues to be in the range of $570 million to $600
million and Adjusted EBITDA* to be in the range of $74 million to
$80 million. The Company does not provide quarterly guidance, but
expects to update its annual guidance at least quarterly.
Conference Call
In connection with this release, Mistras will hold a conference
call on Wednesday, October 9, 2013 at 9:00 a.m. (Eastern). The call
will be broadcast over the Web and can be accessed on Mistras'
Website, www.mistrasgroup.com. Individuals in the U.S. wishing to
participate in the conference call by phone may call 1-877-703-6102
and use confirmation code 84903146 when prompted. The International
dial-in number is 1-857-244-7301.
About Mistras Group, Inc.
Mistras offers one of the broadest "one source" services and
technology-enabled asset protection solution portfolios in the
industry used to evaluate the structural integrity of energy,
industrial and public infrastructure. Mission critical services and
solutions are delivered globally and provide customers with the
ability to extend the useful life of their assets, improve
productivity and profitability, comply with government safety and
environmental regulations and enhance risk management operational
decisions.
Mistras uniquely combines its industry leading products and
technologies - 24/7 on-line monitoring of critical assets;
mechanical integrity ("MI") and non-destructive testing ("NDT")
services; destructive testing services; and its proprietary world
class data warehousing and analysis software - to provide
comprehensive and competitive products, systems and services
solutions from a single source provider.
For more information, please visit the company's website at
www.mistrasgroup.com.
Forward-Looking and Cautionary Statements
Certain statements made in this press release are
"forward-looking statements" about Mistras' financial results and
estimates, products and services, business model, 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 Annual Report on Form 10-K for fiscal year 2013
filed with the Securities and Exchange Commission on August 14,
2013, 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 Measures
The terms "Adjusted EBITDA" and "Adjusted Diluted Earnings Per
Share" used in this release are financial measurements not
calculated in accordance with generally accepted accounting
principles in the U.S. ("GAAP"). Reconciliations of Adjusted EBITDA
and Adjusted Diluted Earnings Per Share to financial measurements
under GAAP are set forth in a table attached to this press release.
In addition, the Company has also included in the tables for
non-GAAP measurements the non-GAAP measurement "Adjusted Net
Income" reconciling this measurement to a financial measurement
under GAAP. The Company believes that investors and other users of
the financial statements benefit from the presentation of Adjusted
EBITDA, Adjusted Net Income and Adjusted Diluted Earnings Per Share
because they provide additional metrics to compare the Company's
operating performance on a consistent basis and measure underlying
trends and results of the Company's business.
Mistras Group,
Inc. |
Unaudited Consolidated
Balance Sheets |
(in thousands, except
share data) |
|
|
|
|
August 31,
2013 |
May 31,
2013 |
ASSETS |
|
|
Current Assets |
|
|
Cash and cash
equivalents |
$ 6,933 |
$ 7,802 |
Accounts receivable,
net |
106,258 |
108,554 |
Inventories,
net |
12,981 |
12,504 |
Deferred income
taxes |
2,710 |
2,621 |
Prepaid expenses and
other current assets |
8,806 |
8,156 |
Total current
assets |
137,688 |
139,637 |
Property, plant and equipment, net |
68,076 |
68,419 |
Intangible assets, net |
50,560 |
52,428 |
Goodwill |
115,325 |
115,270 |
Other assets |
1,019 |
906 |
Total assets |
$ 372,668 |
$ 376,660 |
|
|
|
LIABILITIES AND EQUITY |
|
|
Current Liabilities |
|
|
Accounts payable |
$ 8,476 |
$ 8,490 |
Accrued expenses and other
current liabilities |
44,875 |
47,839 |
Current portion of long-term
debt |
7,405 |
7,418 |
Current portion of capital
lease obligations |
6,945 |
6,766 |
Income taxes payable |
1,702 |
1,703 |
Total current
liabilities |
69,403 |
72,216 |
Long-term debt, net of current portion |
45,495 |
52,849 |
Obligations under capital leases, net of
current portion |
11,278 |
10,923 |
Deferred income taxes |
12,651 |
11,614 |
Other long-term liabilities |
17,054 |
18,778 |
Total liabilities |
155,881 |
166,380 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
Equity |
|
|
Preferred stock, 10,000,000 shares
authorized |
-- |
-- |
Common stock, $0.01 par value,
200,000,000 shares authorized, 28,375,135 and 28,210,862
shares issued and outstanding as of August 31, 2013 and May 31,
2013, respectively |
283 |
282 |
Additional paid-in capital |
196,377 |
195,241 |
Retained earnings |
24,623 |
18,982 |
Accumulated other comprehensive
loss |
(4,717) |
(4,452) |
Total Mistras Group, Inc.
stockholders' equity |
216,566 |
210,053 |
Noncontrolling interests |
221 |
227 |
Total equity |
216,787 |
210,280 |
Total liabilities
and equity |
$ 372,668 |
$ 376,660 |
|
|
|
|
Mistras Group,
Inc. |
Unaudited Consolidated
Statements of Income |
(in thousands except
per share data) |
|
|
|
|
Three months ended August 31, |
|
2013 |
2012 |
Revenues: |
|
|
Services |
$ 128,342 |
$ 99,225 |
Products and systems |
7,496 |
14,162 |
Total revenues |
135,838 |
113,387 |
Cost of revenues: |
|
|
Cost of services |
88,624 |
70,516 |
Cost of products and systems
sold |
3,629 |
5,010 |
Depreciation related to
services |
4,050 |
3,976 |
Depreciation related to
products and systems |
258 |
168 |
Total cost of
revenues |
96,561 |
79,670 |
Gross profit |
39,277 |
33,717 |
Selling, general and
administrative expenses |
28,699 |
23,492 |
Research and engineering |
643 |
517 |
Depreciation and
amortization |
2,457 |
1,895 |
Acquisition-related expense,
net |
(2,097) |
107 |
Income from operations |
9,575 |
7,706 |
Interest expense |
745 |
760 |
Income before provision for income
taxes |
8,830 |
6,946 |
Provision for income taxes |
3,195 |
2,655 |
Net income |
5,635 |
4,291 |
Net loss (income) attributable
to noncontrolling interests, net of taxes |
6 |
(10) |
Net income attributable to Mistras
Group, Inc. |
$ 5,641 |
$ 4,281 |
Earnings per common share: |
|
|
Basic |
$ 0.20 |
$ 0.15 |
Diluted |
$ 0.19 |
$ 0.15 |
Weighted average common shares
outstanding: |
|
|
Basic |
28,241 |
28,045 |
Diluted |
29,109 |
29,000 |
|
|
|
|
Mistras Group, Inc. and
Subsidiaries |
Unaudited Operating
Data by Segment |
(in
thousands) |
|
|
|
|
Three months ended August 31, |
|
2013 |
2012 |
|
|
Revenues |
|
|
Services |
$ 95,810 |
$ 82,397 |
International |
37,759 |
24,429 |
Products and
Systems |
6,585 |
9,534 |
Corporate and
eliminations |
(4,316) |
(2,973) |
|
$ 135,838 |
$ 113,387 |
|
|
|
|
Three months ended August 31, |
|
2013 |
2012 |
|
|
Gross
profit |
|
|
Services |
$ 26,747 |
$ 20,940 |
International |
10,120 |
7,081 |
Products and
Systems |
2,384 |
5,245 |
Corporate and
eliminations |
26 |
451 |
|
$ 39,277 |
$ 33,717 |
|
|
|
|
Mistras Group, Inc. and
Subsidiaries |
Unaudited
Reconciliation of Net Income Attributable to Mistras Group, Inc. to
EBITDA and Adjusted EBITDA |
(in
thousands) |
|
|
|
|
Three months ended August 31, |
|
2013 |
2012 |
EBITDA and Adjusted EBITDA
data |
|
Net income attributable to Mistras Group,
Inc. (GAAP) |
$ 5,641 |
$ 4,281 |
Interest expense |
745 |
760 |
Provision for income taxes |
3,195 |
2,655 |
Depreciation and amortization |
6,765 |
6,039 |
EBITDA (non-GAAP) |
$ 16,346 |
$ 13,735 |
Stock compensation expense |
1,707 |
1,634 |
Acquisition-related, expense net |
(2,097) |
107 |
Adjusted EBITDA (non-GAAP) |
$ 15,956 |
$ 15,476 |
|
|
|
|
Mistras Group, Inc. and
Subsidiaries |
Unaudited
Reconciliation of Net Income Attributable to Mistras Group, Inc.
(GAAP) to Adjusted Net Income and Adjusted Earnings Per Share
(Non-GAAP) |
(in thousands, except
per share data) |
|
|
|
|
Three months ended August 31, |
|
2013 |
2012 |
Adjusted net income |
|
|
Net income attributable to Mistras Group,
Inc. (GAAP) |
$ 5,641 |
$ 4,281 |
Acquisition-related expense, net ($2.1
million benefit and $0.1 million expense, pre-tax for the three
months ended August 31, 2013 and 2012) |
(1,338) |
66 |
Adjusted net income (Non-GAAP) |
$ 4,303 |
$ 4,347 |
|
|
|
Adjusted diluted earnings per common
share |
|
|
Diluted earnings per common share (GAAP) |
$ 0.19 |
$ 0.15 |
Acquisition-related expense, net |
(0.04) |
-- |
Adjusted diluted earnings per common share
(Non-GAAP) |
$ 0.15 |
$ 0.15 |
|
|
|
CONTACT: Nestor S. Makarigakis
Group Director of Marketing Communications
marcom@mistrasgroup.com
1(609)716-4000
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