MISTRAS Announces Second Quarter 2024 and First Half 2024 Results
Rhea-AI Summary
MISTRAS Group (NYSE: MG) reported strong financial results for Q2 2024 and H1 2024. Key highlights include:
- Q2 revenue up 7.8% to $189.8 million
- Q2 gross profit increased 12.9% to $56.1 million
- Q2 net income of $6.4 million, EPS of $0.20
- Q2 Adjusted EBITDA up 44.6% to $22.1 million
- H1 revenue up 8.8% to $374.2 million
- H1 net income of $7.4 million, EPS of $0.23
- H1 Adjusted EBITDA up 48.8% to $38.3 million
The company reaffirmed its 2024 outlook, projecting revenue between $725-$750 million and Adjusted EBITDA between $84-$89 million. Growth was driven by increases across all industries, particularly in Aerospace and Defense.
Positive
- Q2 revenue increased 7.8% year-over-year to $189.8 million
- Q2 gross profit margin expanded 140 basis points to 29.6%
- Q2 Adjusted EBITDA grew 44.6% to $22.1 million
- Aerospace and Defense revenue increased 17.5% in Q2
- SG&A expenses decreased 1.3% in Q2 compared to the prior year
- Company reaffirmed positive 2024 full-year guidance
Negative
- Free cash flow for H1 2024 was negative $6.9 million, compared to positive $7.7 million in H1 2023
- Gross debt increased to $199.7 million as of June 30, 2024, up from $190.4 million at the end of 2023
Insights
MISTRAS Group's Q2 2024 results demonstrate robust financial performance, with notable improvements across key metrics. Revenue grew by
The company's profitability metrics are particularly impressive. Gross profit increased by
The standout metric is Adjusted EBITDA, which grew by
However, investors should note the decrease in cash flow from operations and negative free cash flow, primarily due to working capital changes. While this might be temporary due to project timing, it's an area to monitor in future quarters.
Overall, MISTRAS's Q2 results and reaffirmed 2024 outlook suggest a company on a strong growth trajectory with improving profitability. The focus on high-margin growth initiatives and cost containment bodes well for future performance.
MISTRAS Group's Q2 2024 results reveal interesting market dynamics across its key industries. The
The
MISTRAS's ability to achieve growth across all industries it serves demonstrates the company's diversified business model and its resilience to sector-specific fluctuations. This diversification strategy appears to be paying off, providing stability and multiple growth avenues.
The company's focus on high-margin growth initiatives, such as Data Analytical Solutions and the Aerospace and Defense industry, aligns well with market trends towards digitalization and increased defense spending. This strategic direction could position MISTRAS favorably in capturing emerging opportunities in these high-growth segments.
The reaffirmed outlook for 2024, projecting revenue between
Quarterly Revenue Growth of
Significant Quarterly Gross Profit and Gross Profit Margin Growth across all segments
Further Reductions in Quarterly Selling, General and Administrative expenses
Quarterly Net Income of
PRINCETON JUNCTION, N.J., July 31, 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 second quarter and six months ended June 30, 2024.
Highlights of the Second Quarter 2024*
- Revenue of
$189.8 million , a7.8% increase - Gross profit increased
12.9% to$56.1 million , with gross profit margin of29.6% , a 140 basis point expansion
- Net income of
$6.4 million and Earnings Per Diluted Share of$0.20 - Adjusted EBITDA up
44.6% to$22.1 million
Highlights of the First Half 2024*
- Revenue of
$374.2 million , a8.8% increase - Gross profit increased
11.9% to$107.2 million , with gross profit margin of28.6% , an 80 basis point expansion
- Net income of
$7.4 million and Earnings Per Diluted Share of$0.23 - Adjusted EBITDA up
48.8% to$38.3 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 measures set forth in tables attached to this press release.
Manny Stamatakis, Interim Chief Executive Officer commented “our second quarter results continued the positive momentum generated over the past three quarters and we once again delivered strong top and bottom-line growth for Mistras Group. Revenue was up nearly
Mr. Stamatakis continued, “Gross profit margin improved significantly year over year, and selling, general and administrative expenses (“SG&A”) were reduced on both a sequential and year-over-year basis. We remain focused on further reductions to our cost footprint. Consequently, I am once again reiterating our expectation that fiscal 2024 Adjusted EBITDA will be one of our all-time high-performance years.”
Edward Prajzner, Senior Executive Vice President and Chief Financial Officer, commented, “the second quarter reflects our third consecutive quarter of high single-digit revenue growth with even faster Adjusted EBITDA expansion, clearly illustrating our commitment to meeting our goals set out in our operational and strategic initiatives. The Company’s bottom line growing significantly faster than the top line once again demonstrates the margin accretive actions and significant operating leverage improvements that we have instituted into our business model. We expect these actions to continue to generate attractive bottom-line returns and also provide funds to continue to reinvest in our high margin growth initiatives, such as Data Analytical Solutions and the Aerospace and Defense industry. This is an exciting time for Mistras, and the entire organization is focused on capitalizing on the unique growth opportunities in our markets.”
For the second quarter of 2024, consolidated revenue was
Second quarter 2024 gross profit increased
SG&A in the second quarter of 2024 was
The Company reported net income of
Adjusted EBITDA was
Performance by certain segments during the second quarter was as follows:
North America segment second quarter 2024 revenue was
International segment second 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 reaffirms the 2024 full year guidance previously provided, that being:
- Full year Revenue between
$725 and$750 million - Adjusted EBITDA between
$84 and$89 million * - Free cash flow between
$34 and$38 million
* Note that the Company’s original Adjusted EBITDA outlook for 2024 anticipated an incremental year over year Gross Profit benefit of
Conference Call
In connection with this release, MISTRAS will hold a conference call on August 1, 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/BI05aef0d9604542e897138e5abb38ad5a.
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, 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 measurement 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 related charges 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 measurement 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 (Loss) Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measurement. The tables also include the term “net debt”, a non-GAAP financial measurement the Company defines as the sum of the current and long-term portions of long term debt, less cash and cash equivalents. A reconciliation of these non-GAAP financial measurements to GAAP are also set forth in tables attached to this press release. Each of these non-GAAP financial measurements has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measurements derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measurements used in this press release may not be calculated in the same manner by all companies, these measurements may not be comparable to other similarly-titled measurements used by other companies.
| Mistras Group, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| ASSETS | (unaudited) | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 17,177 | $ | 17,646 | ||||
| Accounts receivable, net | 149,958 | 132,847 | ||||||
| Inventories | 14,944 | 15,283 | ||||||
| Prepaid expenses and other current assets | 11,384 | 14,580 | ||||||
| Total current assets | 193,463 | 180,356 | ||||||
| Property, plant and equipment, net | 78,785 | 80,972 | ||||||
| Intangible assets, net | 41,712 | 43,994 | ||||||
| Goodwill | 184,988 | 187,354 | ||||||
| Deferred income taxes | 3,657 | 2,316 | ||||||
| Other assets | 45,542 | 39,784 | ||||||
| Total assets | $ | 548,147 | $ | 534,776 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 13,759 | $ | 17,032 | ||||
| Accrued expenses and other current liabilities | 85,727 | 84,331 | ||||||
| Current portion of long-term debt | 10,021 | 8,900 | ||||||
| Current portion of finance lease obligations | 4,645 | 5,159 | ||||||
| Income taxes payable | 394 | 1,101 | ||||||
| Total current liabilities | 114,546 | 116,523 | ||||||
| Long-term debt, net of current portion | 189,692 | 181,499 | ||||||
| Obligations under finance leases, net of current portion | 10,864 | 11,261 | ||||||
| Deferred income taxes | 2,571 | 2,552 | ||||||
| Other long-term liabilities | 37,000 | 32,438 | ||||||
| Total liabilities | 354,673 | 344,273 | ||||||
| Equity | ||||||||
| Preferred stock, 10,000,000 shares authorized | — | — | ||||||
| Common stock, | 385 | 305 | ||||||
| Additional paid-in capital | 248,524 | 247,165 | ||||||
| Accumulated deficit | (21,578 | ) | (28,942 | ) | ||||
| Accumulated other comprehensive loss | (34,181 | ) | (28,336 | ) | ||||
| Total Mistras Group, Inc. stockholders’ equity | 193,150 | 190,192 | ||||||
| Non-controlling interests | 324 | 311 | ||||||
| Total equity | 193,474 | 190,503 | ||||||
| Total liabilities and equity | $ | 548,147 | $ | 534,776 | ||||
| Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 189,773 | $ | 176,030 | $ | 374,215 | $ | 344,046 | |||||||
| Cost of revenue | 127,760 | 120,442 | 255,179 | 236,493 | |||||||||||
| Depreciation | 5,897 | 5,866 | 11,831 | 11,754 | |||||||||||
| Gross profit | 56,116 | 49,722 | 107,205 | 95,799 | |||||||||||
| Selling, general and administrative expenses | 40,957 | 41,484 | 82,144 | 84,305 | |||||||||||
| Reorganization and other costs | 518 | 1,240 | 2,075 | 3,316 | |||||||||||
| Legal settlement and insurance recoveries, net | 60 | 150 | 60 | 150 | |||||||||||
| Research and engineering | 231 | 511 | 575 | 991 | |||||||||||
| Depreciation and amortization | 2,391 | 2,443 | 4,839 | 4,969 | |||||||||||
| Acquisition-related expense, net | — | 1 | 1 | 3 | |||||||||||
| Income from operations | 11,959 | 3,893 | 17,511 | 2,065 | |||||||||||
| Interest expense | 4,413 | 3,858 | 8,842 | 7,927 | |||||||||||
| Income (loss) before provision (benefit) for income taxes | 7,546 | 35 | 8,669 | (5,862 | ) | ||||||||||
| Provision (benefit) for income taxes | 1,173 | (341 | ) | 1,292 | (1,260 | ) | |||||||||
| Net Income (Loss) | 6,373 | 376 | 7,377 | (4,602 | ) | ||||||||||
| Less: net income attributable to noncontrolling interests, net of taxes | 4 | 39 | 13 | 47 | |||||||||||
| Net Income (Loss) attributable to Mistras Group, Inc. | $ | 6,369 | $ | 337 | $ | 7,364 | $ | (4,649 | ) | ||||||
| Earnings (loss) per common share: | |||||||||||||||
| Basic | $ | 0.21 | $ | 0.01 | $ | 0.24 | $ | (0.15 | ) | ||||||
| Diluted | $ | 0.20 | $ | 0.01 | $ | 0.23 | $ | (0.15 | ) | ||||||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic | 30,979 | 30,368 | 30,842 | 30,214 | |||||||||||
| Diluted | 31,293 | 30,660 | 31,358 | 30,214 | |||||||||||
| Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | |||||||||||||||
| North America | $ | 156,394 | $ | 145,550 | $ | 306,743 | $ | 282,482 | |||||||
| International | 34,264 | 30,277 | 67,311 | 59,684 | |||||||||||
| Products and Systems | 3,373 | 3,329 | 6,583 | 7,068 | |||||||||||
| Corporate and eliminations | (4,258 | ) | (3,126 | ) | (6,422 | ) | (5,188 | ) | |||||||
| $ | 189,773 | $ | 176,030 | $ | 374,215 | $ | 344,046 | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Gross profit | |||||||||||||||
| North America | $ | 44,336 | $ | 39,679 | $ | 84,326 | $ | 76,316 | |||||||
| International | 10,072 | 8,398 | 19,530 | 15,766 | |||||||||||
| Products and Systems | 1,687 | 1,614 | 3,300 | 3,676 | |||||||||||
| Corporate and eliminations | 21 | 31 | 49 | 41 | |||||||||||
| $ | 56,116 | $ | 49,722 | $ | 107,205 | $ | 95,799 | ||||||||
| Mistras Group, Inc. and Subsidiaries Unaudited Revenues by Category (in thousands) | |||||||||||||||
| Revenue by industry was as follows: | |||||||||||||||
| Three Months Ended June 30, 2024 | North America | International | Products | Corp/Elim | Total | ||||||||||
| Oil & Gas | $ | 96,356 | $ | 12,735 | $ | 165 | $ | — | $ | 109,256 | |||||
| Aerospace & Defense | 16,596 | 5,697 | 47 | — | 22,340 | ||||||||||
| Industrials | 11,853 | 5,878 | 563 | — | 18,294 | ||||||||||
| Power Generation & Transmission | 7,332 | 1,254 | 447 | — | 9,033 | ||||||||||
| Other Process Industries | 10,368 | 4,504 | 37 | — | 14,909 | ||||||||||
| Infrastructure, Research & Engineering | 5,125 | 2,813 | 695 | — | 8,633 | ||||||||||
| Petrochemical | 3,848 | 171 | — | — | 4,019 | ||||||||||
| Other | 4,916 | 1,212 | 1,419 | (4,258 | ) | 3,289 | |||||||||
| Total | $ | 156,394 | $ | 34,264 | $ | 3,373 | $ | (4,258 | ) | $ | 189,773 | ||||
| Three Months Ended June 30, 2023 | North America | International | Products | Corp/Elim | Total | ||||||||||
| Oil & Gas | $ | 97,500 | $ | 8,609 | $ | 15 | $ | — | $ | 106,124 | |||||
| Aerospace & Defense | 13,665 | 5,136 | 217 | — | 19,018 | ||||||||||
| Industrials | 11,066 | 6,203 | 468 | — | 17,737 | ||||||||||
| Power Generation & Transmission | 5,459 | 1,530 | 1,167 | — | 8,156 | ||||||||||
| Other Process Industries | 8,864 | 4,466 | 51 | — | 13,381 | ||||||||||
| Infrastructure, Research & Engineering | 4,171 | 2,028 | 547 | — | 6,746 | ||||||||||
| Petrochemical | 1,577 | 156 | — | — | 1,733 | ||||||||||
| Other | 3,248 | 2,149 | 864 | (3,126 | ) | 3,135 | |||||||||
| Total | $ | 145,550 | $ | 30,277 | $ | 3,329 | $ | (3,126 | ) | $ | 176,030 | ||||
| Six Months Ended June 30, 2024 | North America | International | Products | Corp/Elim | Total | ||||||||||
| Oil & Gas | $ | 199,383 | $ | 22,801 | $ | 237 | $ | — | $ | 222,421 | |||||
| Aerospace & Defense | 31,971 | 12,429 | 58 | — | 44,458 | ||||||||||
| Industrials | 20,762 | 11,731 | 1,000 | — | 33,493 | ||||||||||
| Power Generation & Transmission | 10,924 | 2,936 | 1,025 | — | 14,885 | ||||||||||
| Other Process Industries | 18,296 | 8,437 | 76 | — | 26,809 | ||||||||||
| Infrastructure, Research & Engineering | 9,097 | 5,018 | 1,104 | — | 15,219 | ||||||||||
| Petrochemical | 7,661 | 702 | — | — | 8,363 | ||||||||||
| Other | 8,649 | 3,257 | 3,083 | (6,422 | ) | 8,567 | |||||||||
| Total | $ | 306,743 | $ | 67,311 | $ | 6,583 | $ | (6,422 | ) | $ | 374,215 | ||||
| Six Months Ended June 30, 2023 | North America | International | Products | Corp/Elim | Total | ||||||||||
| Oil & Gas | $ | 187,273 | $ | 17,464 | $ | 52 | $ | — | $ | 204,789 | |||||
| Aerospace & Defense | 27,276 | 10,116 | 228 | — | 37,620 | ||||||||||
| Industrials | 20,368 | 12,256 | 1,026 | — | 33,650 | ||||||||||
| Power Generation & Transmission | 10,446 | 3,187 | 2,493 | — | 16,126 | ||||||||||
| Other Process Industries | 17,973 | 7,703 | 78 | — | 25,754 | ||||||||||
| Infrastructure, Research & Engineering | 6,654 | 4,164 | 1,689 | — | 12,507 | ||||||||||
| Petrochemical | 6,714 | 301 | — | — | 7,015 | ||||||||||
| Other | 5,778 | 4,493 | 1,502 | (5,188 | ) | 6,585 | |||||||||
| Total | $ | 282,482 | $ | 59,684 | $ | 7,068 | $ | (5,188 | ) | $ | 344,046 | ||||
| Oil & Gas Revenue by sub-industry was as follows: | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Oil and Gas Revenue by sub-category | |||||||||||
| Upstream | $ | 42,349 | $ | 41,961 | $ | 84,116 | $ | 78,900 | |||
| Midstream | 25,292 | 27,293 | 46,684 | 48,524 | |||||||
| Downstream | 41,615 | 36,870 | 91,621 | 77,365 | |||||||
| Total | $ | 109,256 | $ | 106,124 | $ | 222,421 | $ | 204,789 | |||
| Consolidated Revenue by type was as follows: | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Field Services | $ | 134,528 | $ | 116,104 | $ | 260,883 | $ | 225,784 | |||
| Shop Laboratories | 16,938 | 14,244 | 34,133 | 27,376 | |||||||
| Data Analytical Solutions | 18,342 | 18,107 | 33,881 | 34,919 | |||||||
| Other | 19,965 | 27,575 | 45,318 | 55,967 | |||||||
| Total | $ | 189,773 | $ | 176,030 | $ | 374,215 | $ | 344,046 | |||
| Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Segment and Total Company Income (Loss) from Operations (GAAP) to Income before Special Items (non-GAAP) (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| North America: | |||||||||||||||
| Income from operations (GAAP) | $ | 18,727 | $ | 12,338 | $ | 32,287 | $ | 21,715 | |||||||
| Reorganization and other costs | 92 | 478 | 92 | 539 | |||||||||||
| Legal settlement and insurance recoveries, net | 60 | 150 | 60 | 150 | |||||||||||
| Income from operations before special items (non-GAAP) | $ | 18,879 | $ | 12,966 | $ | 32,439 | $ | 22,404 | |||||||
| International: | |||||||||||||||
| Income (loss) from operations (GAAP) | $ | 1,647 | $ | 507 | $ | 2,771 | $ | (61 | ) | ||||||
| Reorganization and other costs, net | 161 | 88 | 263 | 195 | |||||||||||
| Income from operations before special items (non-GAAP) | $ | 1,808 | $ | 595 | $ | 3,034 | $ | 134 | |||||||
| Products and Systems: | |||||||||||||||
| Income from operations (GAAP) | $ | 495 | $ | 94 | $ | 809 | $ | 478 | |||||||
| Reorganization and other costs | — | — | 2 | — | |||||||||||
| Income from operations before special items (non-GAAP) | $ | 495 | $ | 94 | $ | 811 | $ | 478 | |||||||
| Corporate and Eliminations: | |||||||||||||||
| Loss from operations (GAAP) | $ | (8,910 | ) | $ | (9,046 | ) | $ | (18,356 | ) | $ | (20,067 | ) | |||
| Reorganization and other costs | 265 | 674 | 1,718 | 2,582 | |||||||||||
| Acquisition-related expense, net | — | 1 | 1 | 3 | |||||||||||
| Loss from operations before special items (non-GAAP) | $ | (8,645 | ) | $ | (8,371 | ) | $ | (16,637 | ) | $ | (17,482 | ) | |||
| Total Company: | |||||||||||||||
| Income from operations (GAAP) | $ | 11,959 | $ | 3,893 | $ | 17,511 | $ | 2,065 | |||||||
| Reorganization and other costs | 518 | 1,240 | 2,075 | 3,316 | |||||||||||
| Legal settlement and insurance recoveries, net | 60 | 150 | 60 | 150 | |||||||||||
| Acquisition-related expense, net | — | 1 | 1 | 3 | |||||||||||
| Income from operations before special items (non-GAAP) | $ | 12,537 | $ | 5,284 | $ | 19,647 | $ | 5,534 | |||||||
| Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Gross Debt (GAAP) to Net Debt (non-GAAP) (in thousands) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Current portion of long-term debt | $ | 10,021 | $ | 8,900 | ||||
| Long-term debt, net of current portion | 189,692 | 181,499 | ||||||
| Total Gross Debt (GAAP) | 199,713 | 190,399 | ||||||
| Less: Cash and cash equivalents | (17,177 | ) | (17,646 | ) | ||||
| Total Net Debt (non-GAAP) | $ | 182,536 | $ | 172,753 | ||||
| Mistras Group, Inc. and Subsidiaries Unaudited Summary Cash Flow Information (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by (used in): | |||||||||||||||
| Operating activities | $ | 4,511 | $ | 13,888 | $ | 5,115 | $ | 18,321 | |||||||
| Investing activities | (5,569 | ) | (5,351 | ) | (11,217 | ) | (9,811 | ) | |||||||
| Financing activities | 134 | (7,236 | ) | 5,261 | (11,187 | ) | |||||||||
| Effect of exchange rate changes on cash | 1,246 | (19 | ) | 372 | 188 | ||||||||||
| Net change in cash and cash equivalents | $ | 322 | $ | 1,282 | $ | (469 | ) | $ | (2,489 | ) | |||||
| 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 4,511 | $ | 13,888 | $ | 5,115 | $ | 18,321 | |||||||
| Less: | |||||||||||||||
| Purchases of property, plant and equipment | (4,795 | ) | (5,469 | ) | (9,599 | ) | (9,801 | ) | |||||||
| Purchases of intangible assets | (1,287 | ) | (461 | ) | (2,404 | ) | (822 | ) | |||||||
| Free cash flow (non-GAAP) | $ | (1,571 | ) | $ | 7,958 | $ | (6,888 | ) | $ | 7,698 | |||||
| Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP) (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Income (loss) (GAAP) | $ | 6,373 | $ | 376 | $ | 7,377 | $ | (4,602 | ) | ||||||
| Less: Net income attributable to non-controlling interests, net of taxes | 4 | 39 | 13 | 47 | |||||||||||
| Net Income (loss) attributable to Mistras Group, Inc. | $ | 6,369 | $ | 337 | $ | 7,364 | $ | (4,649 | ) | ||||||
| Interest expense | 4,413 | 3,858 | 8,842 | 7,927 | |||||||||||
| Provision (benefit) for income taxes | 1,173 | (341 | ) | 1,292 | (1,260 | ) | |||||||||
| Depreciation and amortization | 8,288 | 8,309 | 16,670 | 16,723 | |||||||||||
| Share-based compensation expense | 1,536 | 1,091 | 2,764 | 2,633 | |||||||||||
| Acquisition-related expense | — | 1 | 1 | 3 | |||||||||||
| Reorganization and other related costs, net | 518 | 1,240 | 2,075 | 3,316 | |||||||||||
| Legal settlement and insurance recoveries, net | 60 | 150 | 60 | 150 | |||||||||||
| Foreign exchange (gain) loss | (227 | ) | 654 | (789 | ) | 875 | |||||||||
| Adjusted EBITDA (non-GAAP) | $ | 22,130 | $ | 15,299 | $ | 38,279 | $ | 25,718 | |||||||
| Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) attributable to Mistras Group, Inc. (GAAP) | $ | 6,369 | $ | 337 | $ | 7,364 | $ | (4,649 | ) | ||||||
| Special Items Total | $ | 578 | $ | 1,391 | $ | 2,136 | $ | 3,469 | |||||||
| Tax impact on special items | (140 | ) | (311 | ) | (521 | ) | (815 | ) | |||||||
| Special items, net of tax | $ | 438 | $ | 1,080 | $ | 1,615 | $ | 2,654 | |||||||
| Net income (loss) attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP) | $ | 6,807 | $ | 1,417 | $ | 8,979 | $ | (1,995 | ) | ||||||
| Diluted EPS (GAAP)(1) | $ | 0.20 | $ | 0.01 | $ | 0.23 | $ | (0.15 | ) | ||||||
| Special items, net of tax | 0.01 | 0.04 | 0.05 | 0.09 | |||||||||||
| Diluted EPS Excluding Special Items (non-GAAP) | $ | 0.21 | $ | 0.05 | $ | 0.28 | $ | (0.06 | ) | ||||||
_______________
(1) For the six months ended June 30, 2023, 1,106,595 shares related to restricted stock were excluded from the calculation of diluted EPS due to the net loss for the period.
FAQ
What was MISTRAS Group's (MG) revenue growth in Q2 2024?
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