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 ended September 30, 2021.
Highlights of the Third Quarter 2021*
- Revenue of $174.6 million, up 18.0%
- Gross profit of $52.2 million, up 10.2% with gross
profit margin of 29.9%
- Operating income of $9.2 million, up
60.8%
- Net income of $3.4 million, or $0.11 per diluted
share
- Adjusted EBITDA of $18.8 million, up 8%; Adjusted
EBITDA Margin of 10.8%
Highlights of the Year-to-Date 2021*
- Revenue of $506.0 million, up 17.2%
- Gross profit of $147.6 million, up 14.2% with gross
profit margin of 29.2%
- SG&A expense of $118.6 million, up
1.7%
- Net income of $4.0 million, or $0.13 per diluted
share
- Adjusted EBITDA of $48.4 million, up 41%; Adjusted
EBITDA Margin of 9.6%
* All comparisons are consolidated and versus
the equivalent prior year period, unless otherwise noted.
Third quarter revenue growth of 18% came in at the high end of
the range anticipated by the Company last quarter, in their second
quarter outlook commentary. Revenue gains reflect continued
recovery in the Company’s primary end markets including Energy,
Aerospace and Defense, Other Process Industries and Infrastructure.
The revenue increase reflects a combination of recovery from
existing customers and new contract wins creating additional
long-term agreements. For the third quarter of 2021, consolidated
gross profit was up 10.2% whereas gross profit margin was 29.9%,
down from 32.0% a year ago, primarily due to an increase in the
proportion of revenues attributable to reimbursable travel costs
that were not present in 2020 due to COVID-19 concerns, and
partially offset by a favorable sales mix and better
utilization. Selling, general and administrative expenses in
the third quarter were $39.2 million, which is down sequentially
from $39.7 million in the second quarter of 2021, despite the
reversal of all remaining temporary cost reductions in the third
quarter of 2021, which had been initially implemented in 2020.
Selling, general and administrative expenses were up less than 5%,
as compared to the prior year period, on an 18% revenue increase.
Net income was $3.4 million, or $0.11 per diluted share in the
quarter, increases of 122% and 120% respectively, compared to net
income of $1.6 million or $0.05 per diluted share for the third
quarter of 2020. Adjusted EBITDA for the quarter was $18.8 million,
an increase of 8% over $17.4 million for the third quarter of 2020
and in line with the Company’s Adjusted EBITDA expectations for the
quarter.
Chief Executive Officer Dennis Bertolotti commented, "We met
both our top and bottom-line financial expectations for the third
quarter despite the impact of Hurricane Ida. We are proud to report
revenue, inclusive of this adverse impact, that was already at the
top end of our previously announced range for the third quarter.
Some of the work lost to Ida is expected to be recovered in the
fourth quarter of 2021, as energy markets remain strong. This was
another quarter in which we continued to narrow the gap with
pre-pandemic performance, especially in our energy markets, where
strong energy prices have led to more stable demand for our
services. Despite an increase in the proportion of revenue
attributable to reimbursable travel costs, gross margin expanded in
the third quarter by over 100 basis points over the average of the
first half of this year. Together with continued strong expense
controls, this focus on gross margin has improved leverage in our
business, as illustrated by the 61% expansion of our operating
income in the third quarter. Our core markets are recovering, and
they are also changing, and MISTRAS is evolving with them. We
expect to continue to outpace the growth of our markets by offering
innovative technologies and solutions that meet the evolving needs
of our customers and that build value for our shareholders.”
Mr. Bertolotti additionally commented on the Company’s progress
with several growth initiatives, noting, “We aim to meet the
growing demand for solutions and technologies that can assure the
safety, reliability, and regulatory compliance of the world’s most
valuable and critical assets, such as a natural gas turbine, a wind
blade, a public bridge or a private space satellite. One of these
exciting technologies is the new MISTRAS OneSuite™ software
ecosystem, which provides our customers with MISTRAS' popular
software and services brands as integrated apps in a secure cloud
environment. OneSuite™ serves as a single-access customer portal
for cross-functional data activities, with access to 50-plus
applications, all being offered on one centralized and
interconnected platform.” Mr. Bertolotti further continued, “I am
also pleased to announce our Sensoria™ Wind Blade Monitor and
Sensoria™ Insights Web Portal, which provide real-time detection
and visualization of wind turbine blade damages, to help our
customers maximize the uptime, performance, and safety of their
blades at the asset, farm and fleet levels. Sensoria™ provides
additional growth and expansion of our current capabilities and
greatly enhances our offerings within the renewable energy
industry, by serving both OEM and retrofitted wind turbines with
Edge-to-Edge Intelligence. The COVID-19 pandemic has accelerated
the transition to digitally connected and integrated technologies
such as OneSuite™ and Sensoria™, which provide users with
data-driven insights that make their operations leaner and more
intelligent. This represents an evolution in asset protection, and
MISTRAS is uniquely qualified to leverage our proven capabilities
and expertise such as acoustic emission monitoring, while
innovating to meet the needs of the changing global
landscape.”
For more information on these exciting new solutions from
MISTRAS, please visit www.mistrasgroup.com/onesuite and
www.sensoriawind.com.
Performance by segment during the third quarter was as
follows:
Services segment third quarter revenues were
$145.0 million, up 21.1% from $119.7 million a year ago. Services
segment revenues continue to reflect recovery in the Energy
markets, as well as in the Other Process Industries and
Infrastructure industries. For the third quarter, gross profit was
$41.8 million, compared to $37.6 million in the prior year. Gross
profit margin was 28.8% for the third quarter of 2021, compared to
31.4% in the third quarter of the prior year. The decrease in gross
profit margin was attributable to an increase in the portion of
revenue attributable to reimbursable travel costs in the current
year period.
International segment third quarter revenues
were $29.1 million, up 9.8% from $26.5 million a year ago. Revenues
increased in all end markets with the exception of Oil and Gas.
International segment third quarter gross profit margin was 31.1%,
up slightly from the year ago quarter.
The Company generated $22.5 million of cash flows from
operations in the first nine months of 2021, compared with $41.8
million in the year ago period. Free cash flow was $6.5
million in the first nine months of 2021, compared with $30.8
million in the comparable prior year period. Cash flow from
operations and free cash flow both reflect an increase in working
capital requirements precipitated by the company’s rapid growth in
revenue this year.
The Company’s net debt (total debt less cash and cash
equivalents) was $193.3 million as of September 30, 2021, compared
to $194.5 million as of December 31, 2020. Gross debt decreased by
$4.3 million during the first nine months of 2021, from $220.2
million at the end of last year to $215.9 million as of September
30, 2021.
Outlook for remainder of 2021The Company’s
business has been recovering from the low level of demand
experienced in the second quarter of 2020, when the effect of
COVID-19 peaked. Although energy prices and demand have improved
throughout 2021, the ongoing COVID-19 pandemic continues to impact
the Company. This effect is most pronounced on the Company’s second
largest market Aerospace and Defense, especially in the commercial
sector. Accordingly, for the fourth quarter of 2021 the Company
expects revenue to be flat with the prior year quarter, primarily
due to the energy markets’ immediate focus on peak uptime and a
lagging commercial aerospace recovery. Adjusted EBITDA is expected
to contract modestly in the fourth quarter of 2021, due to
substantially all of the remaining temporary cost reductions
initiated in 2020 having been fully reversed during the third
quarter of 2021, and a lower level of Canadian wage subsidies in
2021 versus 2020. The Company’s outlook for the remainder of 2021
is contingent on continuing macroeconomic stability, including i)
continuing stabilization in crude oil markets, ii) ongoing
effectiveness of COVID-19 vaccination and booster rollout, and iii)
no significant global supply chain disruptions or labor shortages,
which would impact the Company’s ability to work as a critical
service provider.
Conference Call
In connection with this release, MISTRAS will hold a conference
call on November 3, 2021, 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 dial 1-844-832-7227
and use confirmation code 7646409 when prompted. The International
dial-in number is 1-224-633-1529. Those who wish to listen to the
call later can access an archived copy of the conference call at
the MISTRAS 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, and decades-long legacy of industry
leadership, MISTRAS leads clients in the oil and gas, aerospace and
defense, power generation, civil infrastructure, and manufacturing
industries towards achieving and maintaining operational
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; and building
real-time monitoring equipment to enable safe travel across
bridges, 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 (“NDT”) field 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, visit
www.mistrasgroup.com or contact Nestor S. Makarigakis, Group
Vice President of Marketing and Communications at
marcom@mistrasgroup.com.
Forward-Looking and Cautionary
StatementsCertain 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 2020 Annual Report on Form 10-K dated
March 16, 2021, 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 MeasuresIn 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 we believe
provide investors and management with supplemental information
relating to operating performance and trends that facilitate
comparisons between periods and with respect to projected
information. The term "Adjusted EBITDA" used in this release is a
financial measurement not calculated in accordance with GAAP and is
defined as net income attributable to MISTRAS Group, Inc. plus:
interest expense, provision for income taxes, depreciation and
amortization, share-based compensation expense and 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 and, if applicable, certain additional special items which
are noted. A reconciliation of Adjusted EBITDA to a financial
measurement under GAAP is set forth in a table attached to this
press release. The Company also uses the term "non-GAAP Net
Income", which is GAAP net income adjusted for certain items
management believes are unusual and non-recurring. In the tables
attached is a table reconciling "Net Income (Loss) (GAAP)" to "Net
Income (Loss) Excluding Special Items (non-GAAP)”, and “Diluted EPS
(GAAP)” to “Diluted EPS Excluding Special Items (non-GAAP)” which
reconciles the non-GAAP amount to a GAAP measurement. In addition,
the Company has also included in the attached tables non-GAAP
measurement” “Segment and Total Company Income (Loss) Before
Special Items”, reconciling these measurements to financial
measurements under GAAP. The Company uses the term “free cash
flow”, a non-GAAP measurement the Company defines as cash provided
by operating activities less capital expenditures (which is
classified as an investing activity). The Company also uses the
term “net debt”, a non-GAAP measurement defined as the sum of the
current and long-term portions of long-term debt, less cash and
cash equivalents.
Mistras Group, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(in thousands, except share and per share data)
|
|
September 30, 2021 |
|
December 31, 2020 |
ASSETS |
|
(unaudited) |
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
22,597 |
|
|
$ |
25,760 |
|
Accounts receivable, net |
|
127,699 |
|
|
107,628 |
|
Inventories |
|
12,178 |
|
|
13,134 |
|
Prepaid expenses and other current assets |
|
17,505 |
|
|
16,066 |
|
Total current assets |
|
179,979 |
|
|
162,588 |
|
Property, plant and equipment,
net |
|
90,366 |
|
|
92,681 |
|
Intangible assets, net |
|
61,695 |
|
|
68,642 |
|
Goodwill |
|
205,657 |
|
|
206,008 |
|
Deferred income taxes |
|
2,676 |
|
|
2,069 |
|
Other assets |
|
46,855 |
|
|
51,325 |
|
Total assets |
|
$ |
587,228 |
|
|
$ |
583,313 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable |
|
$ |
13,343 |
|
|
$ |
14,240 |
|
Accrued expenses and other current liabilities |
|
88,312 |
|
|
78,500 |
|
Current portion of long-term debt |
|
18,988 |
|
|
10,678 |
|
Current portion of finance lease obligations |
|
3,773 |
|
|
3,765 |
|
Income taxes payable |
|
1,676 |
|
|
2,664 |
|
Total current liabilities |
|
126,092 |
|
|
109,847 |
|
Long-term debt, net of current
portion |
|
196,866 |
|
|
209,538 |
|
Obligations under finance
leases, net of current portion |
|
10,338 |
|
|
11,115 |
|
Deferred income taxes |
|
9,195 |
|
|
8,236 |
|
Other long-term
liabilities |
|
43,711 |
|
|
47,358 |
|
Total liabilities |
|
386,202 |
|
|
386,094 |
|
Commitments and
contingencies |
|
|
|
|
Equity |
|
|
|
|
Preferred stock, 10,000,000 shares authorized |
|
— |
|
|
— |
|
Common stock, $0.01 par value, 200,000,000 shares authorized,
29,457,605 and 29,234,143 shares issued and outstanding |
|
294 |
|
|
292 |
|
Additional paid-in capital |
|
237,577 |
|
|
234,638 |
|
Accumulated Deficit |
|
(17,893 |
) |
|
(21,848 |
) |
Accumulated other comprehensive loss |
|
(19,176 |
) |
|
(16,061 |
) |
Total Mistras Group, Inc. stockholders’ equity |
|
200,802 |
|
|
197,021 |
|
Noncontrolling interests |
|
224 |
|
|
198 |
|
Total equity |
|
201,026 |
|
|
197,219 |
|
Total liabilities and equity |
|
$ |
587,228 |
|
|
$ |
583,313 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Condensed Consolidated
Statements of Income (Loss)(in thousands, except per share
data)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Revenue |
$ |
174,556 |
|
|
$ |
147,894 |
|
|
$ |
505,968 |
|
|
$ |
431,794 |
|
Cost of revenue |
116,750 |
|
|
94,930 |
|
|
341,780 |
|
|
286,208 |
|
Depreciation |
5,590 |
|
|
5,580 |
|
|
16,635 |
|
|
16,400 |
|
Gross
profit |
52,216 |
|
|
47,384 |
|
|
147,553 |
|
|
129,186 |
|
Selling, general and administrative expenses |
39,221 |
|
|
37,473 |
|
|
118,579 |
|
|
116,638 |
|
Impairment charges |
— |
|
|
— |
|
|
— |
|
|
106,062 |
|
Legal settlement and litigation charges, net |
— |
|
|
(360 |
) |
|
1,030 |
|
|
(360 |
) |
Research and engineering |
595 |
|
|
638 |
|
|
1,942 |
|
|
2,170 |
|
Depreciation and amortization |
2,918 |
|
|
3,182 |
|
|
9,070 |
|
|
10,359 |
|
Acquisition-related expense,
net |
246 |
|
|
709 |
|
|
1,068 |
|
|
186 |
|
Income (loss) from
operations |
9,236 |
|
|
5,742 |
|
|
15,864 |
|
|
(105,869 |
) |
Interest expense |
2,326 |
|
|
3,645 |
|
|
8,694 |
|
|
9,410 |
|
Income (loss) before
benefit for income taxes |
6,910 |
|
|
2,097 |
|
|
7,170 |
|
|
(115,279 |
) |
Provision (benefit) for income taxes |
3,513 |
|
|
544 |
|
|
3,187 |
|
|
(15,645 |
) |
Net Income
(loss) |
3,397 |
|
|
1,553 |
|
|
3,983 |
|
|
(99,634 |
) |
Less: net income attributable to noncontrolling interests, net of
taxes |
17 |
|
|
30 |
|
|
28 |
|
|
8 |
|
Net Income (loss)
attributable to Mistras Group, Inc |
$ |
3,380 |
|
|
$ |
1,523 |
|
|
$ |
3,955 |
|
|
$ |
(99,642 |
) |
|
|
|
|
|
|
|
|
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.11 |
|
|
$ |
0.05 |
|
|
$ |
0.13 |
|
|
$ |
(3.43 |
) |
Diluted |
$ |
0.11 |
|
|
$ |
0.05 |
|
|
$ |
0.13 |
|
|
$ |
(3.43 |
) |
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
29,619 |
|
|
29,177 |
|
|
29,550 |
|
|
29,086 |
|
Diluted |
30,127 |
|
|
29,311 |
|
|
30,093 |
|
|
29,086 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Operating Data by
Segment(in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
|
|
Services |
$ |
144,976 |
|
|
$ |
119,721 |
|
|
$ |
414,251 |
|
|
$ |
349,271 |
|
International |
29,100 |
|
|
26,477 |
|
|
88,699 |
|
|
76,887 |
|
Products and Systems |
3,308 |
|
|
3,932 |
|
|
9,499 |
|
|
10,746 |
|
Corporate and eliminations |
(2,828 |
) |
|
(2,236 |
) |
|
(6,481 |
) |
|
(5,110 |
) |
|
$ |
174,556 |
|
|
$ |
147,894 |
|
|
$ |
505,968 |
|
|
$ |
431,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Gross
profit |
|
|
|
|
|
|
|
Services |
$ |
41,749 |
|
|
$ |
37,603 |
|
|
$ |
116,587 |
|
|
$ |
103,780 |
|
International |
9,038 |
|
|
8,197 |
|
|
26,278 |
|
|
21,612 |
|
Products and Systems |
1,422 |
|
|
1,628 |
|
|
4,655 |
|
|
3,834 |
|
Corporate and eliminations |
7 |
|
|
(44 |
) |
|
33 |
|
|
(40 |
) |
|
$ |
52,216 |
|
|
$ |
47,384 |
|
|
$ |
147,553 |
|
|
$ |
129,186 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofSegment and Total Company Income (Loss) from
Operations (GAAP) to Income before Special Items
(non-GAAP)(in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Services: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
16,085 |
|
|
$ |
13,599 |
|
|
$ |
38,991 |
|
|
$ |
(57,058 |
) |
Impairment charges |
— |
|
|
— |
|
|
— |
|
|
86,200 |
|
Reorganization and other costs |
— |
|
|
58 |
|
|
97 |
|
|
125 |
|
Legal settlement and litigation charges, net |
— |
|
|
(360 |
) |
|
1,650 |
|
|
(360 |
) |
Acquisition-related expense, net |
246 |
|
|
709 |
|
|
1,034 |
|
|
186 |
|
Income before special items (non-GAAP) |
$ |
16,331 |
|
|
$ |
14,006 |
|
|
$ |
41,772 |
|
|
$ |
29,093 |
|
International: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
1,169 |
|
|
$ |
(66 |
) |
|
$ |
2,158 |
|
|
$ |
(22,422 |
) |
Impairment charges |
— |
|
|
— |
|
|
— |
|
|
19,862 |
|
Reorganization and other costs |
(2 |
) |
|
21 |
|
|
124 |
|
|
313 |
|
Income (loss) before special items (non-GAAP) |
$ |
1,167 |
|
|
$ |
(45 |
) |
|
$ |
2,282 |
|
|
$ |
(2,247 |
) |
Products and
Systems: |
|
|
|
|
|
|
|
Loss from operations (GAAP) |
$ |
(281 |
) |
|
$ |
(160 |
) |
|
$ |
(653 |
) |
|
$ |
(1,936 |
) |
Reorganization and other costs |
— |
|
|
5 |
|
|
27 |
|
|
5 |
|
Loss before special items (non-GAAP) |
$ |
(281 |
) |
|
$ |
(155 |
) |
|
$ |
(626 |
) |
|
$ |
(1,931 |
) |
Corporate and
Eliminations: |
|
|
|
|
|
|
|
Loss from operations (GAAP) |
$ |
(7,737 |
) |
|
$ |
(7,631 |
) |
|
$ |
(24,632 |
) |
|
$ |
(24,453 |
) |
Loss on debt modification |
— |
|
|
|
|
278 |
|
|
645 |
|
Legal settlement and litigation charges, net |
— |
|
|
— |
|
|
(620 |
) |
|
— |
|
Reorganization and other costs |
— |
|
|
14 |
|
|
— |
|
|
137 |
|
Acquisition-related expense, net |
— |
|
|
— |
|
|
34 |
|
|
— |
|
Loss before special items (non-GAAP) |
$ |
(7,737 |
) |
|
$ |
(7,617 |
) |
|
$ |
(24,940 |
) |
|
$ |
(23,671 |
) |
Total
Company: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
9,236 |
|
|
$ |
5,742 |
|
|
$ |
15,864 |
|
|
$ |
(105,869 |
) |
Impairment charges |
— |
|
|
— |
|
|
— |
|
|
106,062 |
|
Reorganization and other costs |
(2 |
) |
|
98 |
|
|
248 |
|
|
580 |
|
Loss on debt modification |
— |
|
|
— |
|
|
278 |
|
|
645 |
|
Legal settlement and litigation charges, net |
— |
|
|
(360 |
) |
|
1,030 |
|
|
(360 |
) |
Acquisition-related expense, net |
246 |
|
|
709 |
|
|
1,068 |
|
|
186 |
|
Income before special items (non-GAAP) |
$ |
9,480 |
|
|
$ |
6,189 |
|
|
$ |
18,488 |
|
|
$ |
1,244 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Summary Cash Flow
Information(in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net cash provided by (used
in): |
|
|
|
|
|
|
|
Operating activities |
$ |
4,343 |
|
|
$ |
6,929 |
|
|
$ |
22,469 |
|
|
$ |
41,791 |
|
Investing activities |
(5,176 |
) |
|
(3,310 |
) |
|
(15,494 |
) |
|
(10,558 |
) |
Financing activities |
4,104 |
|
|
(4,740 |
) |
|
(8,866 |
) |
|
(25,077 |
) |
Effect of exchange rate changes on cash |
(616 |
) |
|
649 |
|
|
(1,272 |
) |
|
944 |
|
Net change in cash and cash
equivalents |
$ |
2,655 |
|
|
$ |
(472 |
) |
|
$ |
(3,163 |
) |
|
$ |
7,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mistras Group, Inc. and
SubsidiariesUnaudited 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, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities
(GAAP) |
$ |
4,343 |
|
|
$ |
6,929 |
|
|
$ |
22,469 |
|
|
$ |
41,791 |
|
Less: |
|
|
|
|
|
|
|
Purchases of property, plant
and equipment |
(4,942 |
) |
|
(3,233 |
) |
|
(15,130 |
) |
|
(10,676 |
) |
Purchases of intangible
assets |
(269 |
) |
|
(116 |
) |
|
(887 |
) |
|
(311 |
) |
Free cash flow
(non-GAAP) |
$ |
(868 |
) |
|
$ |
3,580 |
|
|
$ |
6,452 |
|
|
$ |
30,804 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation of
Gross Debt (GAAP) to Net Debt (non-GAAP)(in
thousands)
|
|
September 30, 2021 |
|
December 31, 2020 |
|
|
|
|
|
Current portion of long-term debt |
|
$ |
18,988 |
|
|
$ |
10,678 |
|
Long-term debt, net of current
portion |
|
196,866 |
|
|
209,538 |
|
Total Gross Debt (GAAP) |
|
215,854 |
|
|
220,216 |
|
Less: Cash and cash
equivalents |
|
(22,597 |
) |
|
(25,760 |
) |
Total Net Debt (non-GAAP) |
|
$ |
193,257 |
|
|
$ |
194,456 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation of
Net Income (Loss) (GAAP) to Adjusted EBITDA
(non-GAAP)(in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
Net Income (loss) (GAAP) |
$ |
3,397 |
|
|
$ |
1,553 |
|
|
$ |
3,983 |
|
|
$ |
(99,634 |
) |
Less: Net income (loss) attributable to non-controlling interests,
net of taxes |
17 |
|
|
30 |
|
|
28 |
|
|
8 |
|
Net Income (loss)
attributable to Mistras Group, Inc. |
$ |
3,380 |
|
|
$ |
1,523 |
|
|
$ |
3,955 |
|
|
$ |
(99,642 |
) |
Interest expense |
2,326 |
|
|
3,645 |
|
|
8,694 |
|
|
9,410 |
|
Provision (benefit) for income taxes |
3,513 |
|
|
544 |
|
|
3,187 |
|
|
(15,645 |
) |
Depreciation and amortization |
8,508 |
|
|
8,762 |
|
|
25,705 |
|
|
26,759 |
|
Share-based compensation expense |
1,452 |
|
|
1,572 |
|
|
$ |
3,916 |
|
|
4,312 |
|
Impairment charges |
— |
|
|
— |
|
|
— |
|
|
106,062 |
|
Acquisition-related expense (benefit), net |
246 |
|
|
709 |
|
|
1,068 |
|
|
186 |
|
Reorganization and other related costs |
(2 |
) |
|
98 |
|
|
248 |
|
|
580 |
|
Legal settlement and litigation charges, net |
— |
|
|
(360 |
) |
|
1,030 |
|
|
(360 |
) |
Loss on debt modification |
— |
|
|
— |
|
|
278 |
|
|
645 |
|
Foreign exchange gain (loss) |
(587 |
) |
|
898 |
|
|
366 |
|
|
1,965 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
18,836 |
|
|
$ |
17,391 |
|
|
$ |
48,447 |
|
|
$ |
34,272 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofNet Income (Loss) (GAAP) and Diluted EPS (GAAP)
to Net Income (Loss) 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, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income (loss) attributable to Mistras Group, Inc.
(GAAP) |
$ |
3,380 |
|
|
$ |
1,523 |
|
|
$ |
3,955 |
|
|
$ |
(99,642 |
) |
Special items |
244 |
|
|
447 |
|
|
2,624 |
|
|
107,113 |
|
Tax impact on special items |
(59 |
) |
|
(192 |
) |
|
(616 |
) |
|
(14,233 |
) |
Special items, net of tax |
$ |
185 |
|
|
$ |
255 |
|
|
$ |
2,008 |
|
|
$ |
92,880 |
|
Net income (loss)
attributable to Mistras Group, Inc. Excluding Special Items
(non-GAAP) |
$ |
3,565 |
|
|
$ |
1,778 |
|
|
$ |
5,963 |
|
|
$ |
(6,762 |
) |
|
|
|
|
|
|
|
|
Diluted EPS
(GAAP)(1) |
$ |
0.11 |
|
|
$ |
0.05 |
|
|
$ |
0.13 |
|
|
$ |
(3.43 |
) |
Special items, net of tax |
0.01 |
|
|
0.01 |
|
|
0.07 |
|
|
3.19 |
|
Diluted EPS Excluding
Special Items (non-GAAP) |
$ |
0.12 |
|
|
$ |
0.06 |
|
|
$ |
0.20 |
|
|
$ |
(0.24 |
) |
_______________(1) For the nine months ended September 30, 2020,
213,000 shares related to restricted stock were excluded from the
calculation of diluted EPS due to the net loss for the period.
Mistras (NYSE:MG)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Mistras (NYSE:MG)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024