false Q2 0001643615 --12-31 true true true true true true true P1Y us-gaap:PropertyPlantAndEquipmentNet 0.50 0.50 0.50 0.50 P5Y1M9D P2Y11M12D 3.75 3.25 2.50 1.75 3.75 3.25 2.50 1.75 3.75 3.00 2.25 3.75 3.00 2.25 P10Y P7Y9M25D P8Y10D P9Y1M2D P8Y8M26D P7Y7M24D P8Y8M26D P7Y P5Y6M P7Y P6Y4M24D P5Y10M28D P5Y4M24D P4Y10M17D P4Y10M17D P4Y10M17D 0001643615 2021-01-01 2021-06-30 xbrli:shares 0001643615 2021-08-06 iso4217:USD 0001643615 2021-06-30 0001643615 2020-12-31 0001643615 meg:ConversionOptionMember 2021-06-30 0001643615 meg:ConversionOptionMember 2020-12-31 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-12-31 iso4217:USD xbrli:shares 0001643615 2021-04-01 2021-06-30 0001643615 2020-04-01 2020-06-30 0001643615 2020-01-01 2020-06-30 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2019-12-31 0001643615 us-gaap:CommonStockMember 2019-12-31 0001643615 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001643615 us-gaap:RetainedEarningsMember 2019-12-31 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001643615 2019-12-31 0001643615 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001643615 2020-01-01 2020-03-31 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-01-01 2020-03-31 0001643615 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-03-31 0001643615 us-gaap:CommonStockMember 2020-03-31 0001643615 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001643615 us-gaap:RetainedEarningsMember 2020-03-31 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001643615 2020-03-31 0001643615 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-04-01 2020-06-30 0001643615 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-04-01 2020-06-30 0001643615 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-06-30 0001643615 us-gaap:CommonStockMember 2020-06-30 0001643615 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001643615 us-gaap:RetainedEarningsMember 2020-06-30 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001643615 2020-06-30 0001643615 us-gaap:CommonStockMember 2020-12-31 0001643615 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001643615 us-gaap:RetainedEarningsMember 2020-12-31 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001643615 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001643615 2021-01-01 2021-03-31 0001643615 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001643615 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-03-31 0001643615 us-gaap:CommonStockMember 2021-03-31 0001643615 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001643615 us-gaap:RetainedEarningsMember 2021-03-31 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001643615 2021-03-31 0001643615 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001643615 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001643615 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001643615 us-gaap:CommonStockMember 2021-06-30 0001643615 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001643615 us-gaap:RetainedEarningsMember 2021-06-30 0001643615 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001643615 meg:MSEGroupAndVistaMember 2021-01-01 2021-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2021-01-01 2021-06-30 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2021-01-01 2021-06-30 0001643615 meg:EnvironmentalIntelligenceLLCAndSensibleloTMember 2021-01-01 2021-06-30 meg:Office meg:Employee meg:Segment 0001643615 us-gaap:IPOMember 2020-07-27 2020-07-27 0001643615 us-gaap:OverAllotmentOptionMember 2020-07-27 2020-07-27 0001643615 us-gaap:IPOMember 2020-07-27 0001643615 us-gaap:AccountingStandardsUpdate201912Member 2021-06-30 0001643615 us-gaap:AccountingStandardsUpdate201807Member 2021-06-30 0001643615 us-gaap:AccountingStandardsUpdate201704Member 2021-06-30 0001643615 us-gaap:AccountingStandardsUpdate201602Member 2021-06-30 0001643615 2020-01-01 2020-12-31 0001643615 2021-07-01 2021-06-30 0001643615 2022-01-01 2021-06-30 0001643615 meg:RemediationAndReuseSegmentMember 2020-01-01 2020-06-30 xbrli:pure 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember meg:CustomerOneMember 2021-01-01 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember meg:CustomerOneMember 2020-01-01 2020-12-31 meg:Customer 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2020-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2020-04-01 2020-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2020-01-01 2020-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember meg:CustomerOneMember 2021-04-01 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember meg:CustomerOneMember 2021-01-01 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember meg:CustomerTwoMember 2021-04-01 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember meg:CustomerTwoMember 2021-01-01 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember meg:CustomerThreeMember 2021-04-01 2021-06-30 0001643615 us-gaap:CustomerConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember meg:CustomerThreeMember 2021-01-01 2021-06-30 0001643615 meg:LabAndTestEquipmentMember 2021-01-01 2021-06-30 0001643615 us-gaap:VehiclesMember 2021-01-01 2021-06-30 0001643615 us-gaap:EquipmentMember srt:MinimumMember 2021-01-01 2021-06-30 0001643615 us-gaap:EquipmentMember srt:MaximumMember 2021-01-01 2021-06-30 0001643615 us-gaap:FurnitureAndFixturesMember 2021-01-01 2021-06-30 0001643615 us-gaap:LeaseholdImprovementsMember 2021-01-01 2021-06-30 0001643615 us-gaap:AirTransportationEquipmentMember 2021-01-01 2021-06-30 0001643615 us-gaap:BuildingMember 2021-01-01 2021-06-30 0001643615 meg:LabAndTestEquipmentMember 2021-06-30 0001643615 meg:LabAndTestEquipmentMember 2020-12-31 0001643615 us-gaap:VehiclesMember 2021-06-30 0001643615 us-gaap:VehiclesMember 2020-12-31 0001643615 us-gaap:EquipmentMember 2021-06-30 0001643615 us-gaap:EquipmentMember 2020-12-31 0001643615 us-gaap:FurnitureAndFixturesMember 2021-06-30 0001643615 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001643615 us-gaap:LeaseholdImprovementsMember 2021-06-30 0001643615 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001643615 us-gaap:AirTransportationEquipmentMember 2021-06-30 0001643615 us-gaap:AirTransportationEquipmentMember 2020-12-31 0001643615 us-gaap:BuildingMember 2021-06-30 0001643615 us-gaap:BuildingMember 2020-12-31 0001643615 us-gaap:LandMember 2021-06-30 0001643615 us-gaap:LandMember 2020-12-31 0001643615 us-gaap:ConstructionInProgressMember 2021-06-30 0001643615 us-gaap:ConstructionInProgressMember 2020-12-31 0001643615 srt:MinimumMember 2021-01-01 2021-06-30 0001643615 srt:MaximumMember 2021-01-01 2021-06-30 0001643615 2021-01-31 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-04-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-06-30 0001643615 meg:DepreciationAndAmortizationMember 2021-04-01 2021-06-30 0001643615 meg:DepreciationAndAmortizationMember 2021-01-01 2021-06-30 0001643615 meg:InterestExpenseNetMember 2021-04-01 2021-06-30 0001643615 meg:InterestExpenseNetMember 2021-01-01 2021-06-30 0001643615 meg:MSEGroupMember 2021-01-31 0001643615 meg:MSEGroupMember 2021-01-01 2021-06-30 0001643615 meg:VistaAnalyticalLaboratoryIncMember 2021-06-30 0001643615 meg:VistaAnalyticalLaboratoryIncMember 2021-01-01 2021-06-30 0001643615 meg:MSEGroupAndVistaMember meg:TwoThousandAndTwentyTwoEarnOutsMember 2021-06-30 0001643615 meg:MSEGroupAndVistaMember meg:TwoThousandAndTwentyThreeEarnOutsMember 2021-06-30 0001643615 meg:MSEGroupMember 2021-06-30 0001643615 meg:MSEGroupMember us-gaap:CustomerRelationshipsMember 2021-06-30 0001643615 meg:VistaAnalyticalLaboratoryIncMember us-gaap:CustomerRelationshipsMember 2021-06-30 0001643615 us-gaap:CustomerRelationshipsMember 2021-06-30 0001643615 meg:MSEGroupMember us-gaap:TradeNamesMember 2021-06-30 0001643615 meg:VistaAnalyticalLaboratoryIncMember us-gaap:TradeNamesMember 2021-06-30 0001643615 us-gaap:TradeNamesMember 2021-06-30 0001643615 meg:MSEGroupMember us-gaap:NoncompeteAgreementsMember 2021-06-30 0001643615 meg:VistaAnalyticalLaboratoryIncMember us-gaap:NoncompeteAgreementsMember 2021-06-30 0001643615 us-gaap:NoncompeteAgreementsMember 2021-06-30 0001643615 meg:MSEGroupAndVistaMember 2021-04-01 2021-06-30 0001643615 meg:MSEGroupMember us-gaap:CustomerRelationshipsMember 2021-01-01 2021-01-31 0001643615 meg:MSEGroupMember us-gaap:OrderOrProductionBacklogMember 2021-01-01 2021-01-31 0001643615 meg:MSEGroupMember us-gaap:TradeNamesMember 2021-01-01 2021-01-31 0001643615 meg:MSEGroupMember us-gaap:NoncompeteAgreementsMember 2021-01-01 2021-01-31 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-01-01 2020-12-31 0001643615 meg:OtherAcquisitionMember 2020-01-01 2020-12-31 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyEarnOutMember 2021-01-01 2021-06-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyOneEarnOutMember 2021-01-01 2021-06-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyEarnOutMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyEarnOutMember 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyOneEarnOutMember 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyEarnOutMember srt:MinimumMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyEarnOutMember srt:MaximumMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyOneEarnOutMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember meg:TwoThousandAndTwentyEarnOutMember 2021-04-01 2021-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-12-31 0001643615 meg:OtherTwoThousandTwentyAcquisitionsMember 2020-12-31 0001643615 us-gaap:CustomerRelationshipsMember meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-12-31 0001643615 us-gaap:CustomerRelationshipsMember 2020-12-31 0001643615 us-gaap:TradeNamesMember meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-12-31 0001643615 us-gaap:TradeNamesMember 2020-12-31 0001643615 us-gaap:NoncompeteAgreementsMember meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-12-31 0001643615 us-gaap:NoncompeteAgreementsMember meg:OtherTwoThousandTwentyAcquisitionsMember 2020-12-31 0001643615 us-gaap:NoncompeteAgreementsMember 2020-12-31 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember 2020-12-31 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember 2020-12-31 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember us-gaap:CustomerRelationshipsMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember us-gaap:TradeNamesMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember us-gaap:NoncompeteAgreementsMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember us-gaap:ComputerSoftwareIntangibleAssetMember 2020-04-01 2020-04-30 0001643615 meg:TheCenterForToxicologyAndEnvironmentalHealthLLCMember us-gaap:SoftwareDevelopmentMember 2020-04-01 2020-04-30 0001643615 meg:OtherAcquisitionMember us-gaap:NoncompeteAgreementsMember 2020-04-01 2020-04-30 0001643615 meg:AcquisitionProformaMember 2021-04-01 2021-06-30 0001643615 meg:ConsolidatedProformaMember 2021-04-01 2021-06-30 0001643615 meg:AcquisitionProformaMember 2020-04-01 2020-06-30 0001643615 meg:ConsolidatedProformaMember 2020-04-01 2020-06-30 0001643615 meg:AcquisitionProformaMember 2021-01-01 2021-06-30 0001643615 meg:ConsolidatedProformaMember 2021-01-01 2021-06-30 0001643615 meg:AcquisitionProformaMember 2020-01-01 2020-06-30 0001643615 meg:ConsolidatedProformaMember 2020-01-01 2020-06-30 0001643615 meg:AssessmentPermittingAndResponseMember 2020-12-31 0001643615 meg:MeasurementAndAnalysisMember 2020-12-31 0001643615 meg:RemediationAndReuseSegmentMember 2020-12-31 0001643615 meg:MeasurementAndAnalysisMember 2021-01-01 2021-06-30 0001643615 meg:RemediationAndReuseSegmentMember 2021-01-01 2021-06-30 0001643615 meg:AssessmentPermittingAndResponseMember 2021-06-30 0001643615 meg:MeasurementAndAnalysisMember 2021-06-30 0001643615 meg:RemediationAndReuseSegmentMember 2021-06-30 0001643615 us-gaap:CustomerRelationshipsMember srt:MinimumMember 2021-01-01 2021-06-30 0001643615 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2021-01-01 2021-06-30 0001643615 us-gaap:NoncompeteAgreementsMember srt:MinimumMember 2021-01-01 2021-06-30 0001643615 us-gaap:NoncompeteAgreementsMember srt:MaximumMember 2021-01-01 2021-06-30 0001643615 us-gaap:TradeNamesMember srt:MinimumMember 2021-01-01 2021-06-30 0001643615 us-gaap:TradeNamesMember srt:MaximumMember 2021-01-01 2021-06-30 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember srt:MinimumMember 2021-01-01 2021-06-30 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember srt:MaximumMember 2021-01-01 2021-06-30 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember 2021-06-30 0001643615 us-gaap:PatentsMember 2021-06-30 0001643615 us-gaap:PatentsMember 2021-01-01 2021-06-30 0001643615 us-gaap:CustomerRelationshipsMember srt:MinimumMember 2020-01-01 2020-12-31 0001643615 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2020-01-01 2020-12-31 0001643615 us-gaap:NoncompeteAgreementsMember srt:MinimumMember 2020-01-01 2020-12-31 0001643615 us-gaap:NoncompeteAgreementsMember srt:MaximumMember 2020-01-01 2020-12-31 0001643615 us-gaap:TradeNamesMember srt:MinimumMember 2020-01-01 2020-12-31 0001643615 us-gaap:TradeNamesMember srt:MaximumMember 2020-01-01 2020-12-31 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember srt:MinimumMember 2020-01-01 2020-12-31 0001643615 us-gaap:ComputerSoftwareIntangibleAssetMember srt:MaximumMember 2020-01-01 2020-12-31 0001643615 us-gaap:PatentsMember 2020-12-31 0001643615 us-gaap:PatentsMember 2020-01-01 2020-12-31 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2018-10-19 0001643615 meg:RedeemableSeriesA2PreferredStockMember 2020-04-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-07-27 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-07-27 2020-07-27 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2021-01-01 2021-06-30 0001643615 meg:RedeemableSeriesAOnePreferredStockMember us-gaap:CommonStockMember 2020-07-30 0001643615 meg:RedeemableSeriesAOnePreferredStockMember us-gaap:CommonStockMember 2020-07-30 2020-07-30 0001643615 meg:TermLoanFacilityMember 2021-06-30 0001643615 meg:TermLoanFacilityMember 2020-12-31 0001643615 us-gaap:RevolvingCreditFacilityMember 2021-06-30 0001643615 meg:EquipmentLineOfCreditMember 2020-12-31 0001643615 meg:TwentyTwentyOneCreditFacilityMember 2021-04-27 0001643615 meg:TermLoanFacilityMember meg:TwentyTwentyOneCreditFacilityMember 2021-04-27 0001643615 us-gaap:RevolvingCreditFacilityMember meg:TwentyTwentyOneCreditFacilityMember 2021-04-27 0001643615 us-gaap:RevolvingCreditFacilityMember us-gaap:LetterOfCreditMember meg:TwentyTwentyOneCreditFacilityMember 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember 2021-04-27 2021-04-27 0001643615 meg:IncrementalTermLoansMember 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier2Member srt:MaximumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier3Member srt:MaximumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier4Member srt:MaximumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier5Member srt:MaximumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier1Member srt:MinimumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier2Member srt:MinimumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier3Member srt:MinimumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier4Member srt:MinimumMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier1Member us-gaap:LondonInterbankOfferedRateLIBORMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier2Member us-gaap:LondonInterbankOfferedRateLIBORMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier3Member us-gaap:LondonInterbankOfferedRateLIBORMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier4Member us-gaap:LondonInterbankOfferedRateLIBORMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier5Member us-gaap:LondonInterbankOfferedRateLIBORMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier1Member us-gaap:BaseRateMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier2Member us-gaap:BaseRateMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier3Member us-gaap:BaseRateMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier4Member us-gaap:BaseRateMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier5Member us-gaap:BaseRateMember 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier1Member 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier2Member 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier3Member 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier4Member 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember meg:PricingTier5Member 2021-04-27 2021-04-27 0001643615 meg:TwentyTwentyOneCreditFacilityMember 2021-01-01 2021-06-30 0001643615 meg:TwentyTwentyOneCreditFacilityMember 2021-06-30 0001643615 meg:TwentyTwentyCreditFacilityMember 2020-04-13 0001643615 meg:TermLoanFacilityMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 0001643615 us-gaap:RevolvingCreditFacilityMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 0001643615 meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-04-13 0001643615 meg:TermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-10-06 0001643615 meg:TermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember meg:TwentyTwentyCreditFacilityMember 2020-10-06 2020-10-06 0001643615 meg:TermLoanFacilityMember meg:LondonInterbankOfferedRateLIBORFloorMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-10-06 0001643615 meg:TermLoanFacilityMember meg:LondonInterbankOfferedRateLIBORFloorMember meg:TwentyTwentyCreditFacilityMember 2020-10-06 2020-10-06 0001643615 meg:TermLoanFacilityMember us-gaap:BaseRateMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-10-06 0001643615 us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-10-06 0001643615 us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-10-06 0001643615 us-gaap:RevolvingCreditFacilityMember meg:TwentyTwentyCreditFacilityMember 2020-04-13 2020-04-13 0001643615 meg:TwentyTwentyCreditFacilityMember 2021-01-01 2021-06-30 0001643615 meg:TwentyTwentyCreditFacilityMember 2020-09-29 2020-09-30 0001643615 srt:ScenarioForecastMember meg:TwentyTwentyCreditFacilityMember 2021-09-30 2021-09-30 0001643615 srt:ScenarioForecastMember meg:TwentyTwentyCreditFacilityMember 2022-09-30 2022-09-30 0001643615 meg:TwentyTwentyCreditFacilityMember 2021-06-30 0001643615 srt:ScenarioForecastMember meg:TwentyTwentyCreditFacilityMember 2021-12-31 0001643615 srt:ScenarioForecastMember meg:TwentyTwentyCreditFacilityMember 2022-12-31 0001643615 meg:TwentyTwentyCreditFacilityMember 2020-01-01 2020-12-31 0001643615 meg:TermLoanFacilityMember meg:PriorSeniorSecuredCreditFacilityMember 2021-06-30 0001643615 us-gaap:RevolvingCreditFacilityMember meg:PriorSeniorSecuredCreditFacilityMember 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember us-gaap:FederalFundsEffectiveSwapRateMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier2Member srt:MaximumMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier3Member srt:MaximumMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier4Member srt:MaximumMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier1Member srt:MinimumMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier2Member srt:MinimumMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier3Member srt:MinimumMember 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier1Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier2Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier3Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:PricingTier4Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:EurodollarRateLoansAndLIBORLetterOfCreditFeeMember meg:PricingTier1Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:EurodollarRateLoansAndLIBORLetterOfCreditFeeMember meg:PricingTier2Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:EurodollarRateLoansAndLIBORLetterOfCreditFeeMember meg:PricingTier3Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:EurodollarRateLoansAndLIBORLetterOfCreditFeeMember meg:PricingTier4Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:DailyFloatingRateLoansMember meg:PricingTier1Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:DailyFloatingRateLoansMember meg:PricingTier2Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:DailyFloatingRateLoansMember meg:PricingTier3Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:DailyFloatingRateLoansMember meg:PricingTier4Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:RateLoansMember meg:PricingTier1Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:RateLoansMember meg:PricingTier2Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:RateLoansMember meg:PricingTier3Member 2021-01-01 2021-06-30 0001643615 meg:PriorSeniorSecuredCreditFacilityMember meg:RateLoansMember meg:PricingTier4Member 2021-01-01 2021-06-30 0001643615 meg:EquipmentLineOfCreditMember 2019-03-12 0001643615 meg:CanadianEquipmentLineOfCreditFacilityMember 2019-05-16 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationCurrentMember 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationCurrentMember 2020-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationLongTermMember 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationLongTermMember 2020-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:ConversionOptionMember 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:ConversionOptionMember 2020-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationCurrentMember 2019-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationLongTermMember 2019-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:PutOptionMember 2019-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:WarrantOptionMember 2019-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:CompoundEmbeddedOptionsMember 2020-01-01 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-01-01 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:WarrantOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationCurrentMember 2020-01-01 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationLongTermMember 2020-01-01 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:PutOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:CompoundEmbeddedOptionsMember 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationCurrentMember 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationLongTermMember 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member us-gaap:PutOptionMember 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:WarrantOptionMember 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationLongTermMember 2021-01-01 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:BusinessAcquisitionsContingentConsiderationCurrentMember 2021-01-01 2021-06-30 0001643615 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member meg:ConversionOptionMember 2021-01-01 2021-06-30 0001643615 us-gaap:MeasurementInputSharePriceMember meg:RedeemableSeriesAOnePreferredStockMember 2020-06-30 0001643615 us-gaap:MeasurementInputOptionVolatilityMember meg:RedeemableSeriesAOnePreferredStockMember 2020-06-30 0001643615 us-gaap:MeasurementInputRiskFreeInterestRateMember meg:RedeemableSeriesAOnePreferredStockMember 2020-06-30 0001643615 us-gaap:MeasurementInputExpectedTermMember meg:RedeemableSeriesAOnePreferredStockMember 2020-06-30 0001643615 us-gaap:OfficeEquipmentMember 2021-01-01 2021-06-30 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-04-13 2020-04-13 0001643615 meg:RedeemableSeriesAOnePreferredStockMember srt:MaximumMember 2020-04-13 0001643615 meg:RedeemableSeriesAOnePreferredStockMember srt:MinimumMember 2020-04-13 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-04-13 0001643615 meg:RedeemableSeriesAOnePreferredStockMember 2020-01-01 2020-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-04-13 0001643615 2020-04-13 0001643615 2020-04-13 2020-04-13 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2020-04-13 2020-04-13 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-04-01 2021-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-01-01 2021-06-30 0001643615 meg:SixtyDayPeriodPriorToSeventhAnniversaryMember meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-06-30 0001643615 meg:YearFiveMember meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-06-30 0001643615 meg:YearSixMember meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember 2021-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember us-gaap:OtherNonoperatingIncomeExpenseMember 2021-04-01 2021-06-30 0001643615 meg:ConvertibleAndRedeemableSeriesATwoPreferredStockMember us-gaap:OtherNonoperatingIncomeExpenseMember 2021-01-01 2021-06-30 0001643615 us-gaap:PrivatePlacementMember 2015-05-31 0001643615 meg:TwoThousandSeventeenPlanMember 2021-06-30 0001643615 meg:TwoThousandThirteenPlanMember 2021-06-30 0001643615 meg:TwoThousandSeventeenPlanMember 2020-06-30 0001643615 meg:TwoThousandThirteenPlanMember 2020-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001643615 us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001643615 us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2021-04-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2021-04-01 2021-06-30 0001643615 meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0001643615 meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:CostOfSalesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:CostOfSalesMember 2020-01-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2021-01-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2020-01-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2021-01-01 2021-06-30 0001643615 meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 meg:TwoThousandSeventeenPlanMember us-gaap:RestrictedStockMember 2020-01-01 2020-06-30 0001643615 meg:TwoThousandThirteenPlanMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:RestrictedStockMember meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2021-04-01 2021-06-30 0001643615 us-gaap:RestrictedStockMember meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2021-01-01 2021-06-30 0001643615 us-gaap:RestrictedStockMember meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2020-01-01 2020-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2021-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2020-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2020-01-01 2020-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember srt:DirectorMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember srt:ExecutiveOfficerMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember srt:DirectorMember us-gaap:EmployeeStockOptionMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2021-01-01 2021-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember srt:DirectorMember us-gaap:EmployeeStockOptionMember meg:ShareBasedCompensationAwardTrancheFourMember 2021-01-01 2021-06-30 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2019-12-31 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2020-12-31 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2019-01-01 2019-12-31 0001643615 meg:MontroseTwoThousandSeventeenStockIncentivePlanMember 2020-01-01 2020-12-31 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2019-12-31 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2020-01-01 2020-06-30 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2020-06-30 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2020-12-31 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2021-06-30 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2019-01-01 2019-12-31 0001643615 meg:MontroseTwoThousandThirteenStockOptionPlanMember 2020-01-01 2020-12-31 0001643615 meg:WarrantOptionMember 2020-06-30 0001643615 meg:MontroseTwoThousandThirteenStockIncentivePlanMember 2021-06-30 0001643615 meg:MontroseTwoThousandThirteenStockIncentivePlanMember 2020-06-30 0001643615 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001643615 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:RestrictedStockMember 2021-01-01 2021-06-30 0001643615 us-gaap:RestrictedStockMember 2020-01-01 2020-06-30 0001643615 meg:WarrantOptionMember 2020-01-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:AssessmentPermittingAndResponseMember 2021-04-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:MeasurementAndAnalysisMember 2021-04-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:RemediationAndReuseMember 2021-04-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember 2021-04-01 2021-06-30 0001643615 us-gaap:CorporateAndOtherMember 2021-04-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:AssessmentPermittingAndResponseMember 2020-04-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:MeasurementAndAnalysisMember 2020-04-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:RemediationAndReuseMember 2020-04-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember 2020-04-01 2020-06-30 0001643615 us-gaap:CorporateAndOtherMember 2020-04-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:AssessmentPermittingAndResponseMember 2021-01-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:MeasurementAndAnalysisMember 2021-01-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:RemediationAndReuseMember 2021-01-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember 2021-01-01 2021-06-30 0001643615 us-gaap:CorporateAndOtherMember 2021-01-01 2021-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:AssessmentPermittingAndResponseMember 2020-01-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:MeasurementAndAnalysisMember 2020-01-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember meg:RemediationAndReuseMember 2020-01-01 2020-06-30 0001643615 us-gaap:OperatingSegmentsMember 2020-01-01 2020-06-30 0001643615 us-gaap:CorporateAndOtherMember 2020-01-01 2020-06-30 0001643615 meg:AcquisitionTargetsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-04-01 2021-06-30 0001643615 meg:AcquisitionTargetsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-06-30 0001643615 meg:AcquisitionTargetsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0001643615 meg:AcquisitionTargetsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30 0001643615 2020-01-01 2020-05-22 0001643615 srt:MinimumMember 2020-01-01 2020-05-22 0001643615 srt:MaximumMember 2020-01-01 2020-05-22 0001643615 meg:EnvironmentalIntelligenceLLCMember us-gaap:SubsequentEventMember 2021-07-01 0001643615 meg:SensibleloTLLCMember us-gaap:SubsequentEventMember 2021-08-02 0001643615 meg:EnvironmentalIntelligenceLLCMember us-gaap:SubsequentEventMember 2021-07-01 2021-07-01 0001643615 meg:SensibleloTLLCMember us-gaap:SubsequentEventMember 2021-08-02 2021-08-02

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to         

Commission File Number: 001-39394

 

Montrose Environmental Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

46-4195044

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

5120 Northshore Drive,

North Little Rock, Arkansas

72118

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (501) 900-6400

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.000004 per share

 

MEG

 

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of August 6, 2021, the registrant had 26,199,377 shares of common stock, $0.000004 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements

1

 

Unaudited Condensed Consolidated Statements of Financial Position

1

 

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Unaudited Condensed Consolidated Statements of Redeemable Series A-1 Preferred Stock, Convertible and Redeemable Series A-2 Preferred Stock and Stockholders’ (Deficit) Equity

3

 

Unaudited Condensed Consolidated Statements of Cash Flows

4

 

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

33

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

51

Item 4.

Controls and Procedures

51

 

 

 

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

52

Item 1A.

Risk Factors

52

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

52

Item 3.

Defaults Upon Senior Securities

52

Item 4.

Mine Safety Disclosures

52

Item 5.

Other Information

52

Item 6.

Exhibits

53

Signatures

54

 

 

 

 

i


 

 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

MONTROSE ENVIRONMENTAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands, except share data)

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and restricted cash

 

$

40,189

 

 

$

34,881

 

Accounts receivable—net

 

 

72,351

 

 

 

54,102

 

Contract assets

 

 

55,033

 

 

 

38,576

 

Prepaid and other current assets

 

 

7,706

 

 

 

6,709

 

Total current assets

 

 

175,279

 

 

 

134,268

 

NON-CURRENT ASSETS:

 

 

 

 

 

 

 

 

Property and equipment—net

 

 

29,552

 

 

 

34,399

 

Operating lease right-of-use asset—net

 

 

25,823

 

 

 

 

Finance lease right-of-use asset—net

 

 

7,439

 

 

 

 

Goodwill

 

 

287,293

 

 

 

274,667

 

Other intangible assets—net

 

 

152,740

 

 

 

154,854

 

Other assets

 

 

3,390

 

 

 

4,538

 

TOTAL ASSETS

 

$

681,516

 

 

$

602,726

 

LIABILITIES, CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK AND

   STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable and other accrued liabilities

 

$

40,995

 

 

$

34,877

 

Accrued payroll and benefits

 

 

19,279

 

 

 

21,181

 

Business acquisitions contingent consideration, current

 

 

30,152

 

 

 

49,902

 

Current portion of operating lease liabilities

 

 

7,268

 

 

 

 

Current portion of finance lease liabilities

 

 

2,966

 

 

 

 

Current portion of long-term debt

 

 

6,563

 

 

 

5,583

 

Total current liabilities

 

 

107,223

 

 

 

111,543

 

NON-CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Business acquisitions contingent consideration, long-term

 

 

1,000

 

 

 

4,565

 

Other non-current liabilities

 

 

2,505

 

 

 

2,523

 

Deferred tax liabilities—net

 

 

2,431

 

 

 

2,815

 

Conversion option

 

 

22,006

 

 

 

20,886

 

Operating lease liability—net of current portion

 

 

18,643

 

 

 

 

Finance lease liability—net of current portion

 

 

4,785

 

 

 

 

Long-term debt—net of deferred financing fees

 

 

230,934

 

 

 

170,321

 

Total liabilities

 

 

389,527

 

 

 

312,653

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK $0.0001

   PAR VALUE—

 

 

 

 

 

 

 

 

Authorized, issued and outstanding shares: 17,500 at June 30, 2021 and

   December 31, 2020; aggregate liquidation preference of $182.2 million at June 30, 2021 and

   December 31, 2020

 

 

152,928

 

 

 

152,928

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Common stock, $0.000004 par value; authorized shares: 190,000,000 at

    June 30, 2021 and December 31, 2020; issued and outstanding shares: 26,108,188 and

    24,932,527 at June 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Additional paid-in-capital

 

 

287,365

 

 

 

259,427

 

Accumulated deficit

 

 

(148,432

)

 

 

(122,353

)

Accumulated other comprehensive income

 

 

128

 

 

 

71

 

Total stockholders’ equity

 

 

139,061

 

 

 

137,145

 

TOTAL LIABILITIES, CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK

   AND STOCKHOLDERS’ EQUITY

 

$

681,516

 

 

$

602,726

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1


 

MONTROSE ENVIRONMENTAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE (LOSS) INCOME

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

REVENUES

 

$

136,224

 

 

$

73,766

 

 

$

270,041

 

 

$

134,797

 

COST OF REVENUES (exclusive of depreciation and

   amortization shown below)

 

 

92,104

 

 

 

45,889

 

 

 

187,420

 

 

 

90,287

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE

 

 

27,366

 

 

 

19,318

 

 

 

52,366

 

 

 

39,837

 

INITIAL PUBLIC OFFERING EXPENSE

 

 

 

 

 

 

 

 

 

 

 

531

 

FAIR VALUE CHANGES IN BUSINESS ACQUISITIONS

   CONTINGENT CONSIDERATION

 

 

12,971

 

 

 

3,983

 

 

 

24,035

 

 

 

3,983

 

DEPRECIATION AND AMORTIZATION

 

 

10,905

 

 

 

9,784

 

 

 

21,674

 

 

 

17,344

 

(LOSS) FROM OPERATIONS

 

 

(7,122

)

 

 

(5,208

)

 

 

(15,454

)

 

 

(17,185

)

OTHER (EXPENSE) INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income

 

 

(819

)

 

 

21,933

 

 

 

(1,393

)

 

 

(7,897

)

Interest expense—net

 

 

(6,798

)

 

 

(5,260

)

 

 

(9,486

)

 

 

(7,853

)

Total other (expenses) income—net

 

 

(7,617

)

 

 

16,673

 

 

 

(10,879

)

 

 

(15,750

)

LOSS BEFORE (BENEFIT) EXPENSE FROM INCOME TAXES

 

 

(14,739

)

 

 

11,465

 

 

 

(26,333

)

 

 

(32,935

)

INCOME TAXES BENEFIT

 

 

(256

)

 

 

(1,759

)

 

 

(254

)

 

 

(4,911

)

NET (LOSS) INCOME

 

$

(14,483

)

 

$

13,224

 

 

$

(26,079

)

 

$

(28,024

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY ADJUSTMENT FROM FOREIGN CURRENCY

   TRANSLATION

 

 

28

 

 

 

(90

)

 

 

57

 

 

 

(53

)

COMPREHENSIVE (LOSS) INCOME

 

 

(14,455

)

 

 

13,134

 

 

 

(26,022

)

 

 

(28,077

)

ACCRETION OF REDEEMABLE SERIES A-1 PREFERRED

   STOCK

 

 

 

 

 

(5,644

)

 

 

 

 

 

(11,059

)

CONVERTIBLE AND REDEEMABLE SERIES A-2

   PREFERRED STOCK DIVIDEND

 

 

(4,100

)

 

 

 

 

 

(8,200

)

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

 

(18,583

)

 

 

7,580

 

 

 

(34,279

)

 

 

(39,083

)

WEIGHTED AVERAGE COMMON SHARES

   OUTSTANDING— BASIC

 

 

26,056

 

 

 

10,649

 

 

 

25,586

 

 

 

9,718

 

NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON

   STOCKHOLDERS— BASIC

 

$

(0.71

)

 

$

0.71

 

 

$

(1.34

)

 

$

(4.02

)

WEIGHTED AVERAGE COMMON SHARES

   OUTSTANDING— DILUTED

 

 

26,056

 

 

 

19,139

 

 

 

25,586

 

 

 

9,718

 

NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON

   STOCKHOLDERS— DILUTED

 

$

(0.71

)

 

$

0.40

 

 

$

(1.34

)

 

$

(4.02

)

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2


 

 

 

MONTROSE ENVIRONMENTAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE SERIES A-1 PREFERRED STOCK, CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Total

 

 

 

Redeemable Series A-1

 

 

Convertible and Redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Stockholders'

 

 

 

Preferred Stock

 

 

Series A-2 Preferred Stock

 

 

 

Common Stock

 

Additional

 

Accumulated

 

Comprehensive

 

(Deficit)

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

Paid-In Capital

 

Deficit

 

(Loss) Income

 

Equity

 

BALANCE—December 31, 2019

 

 

12,000

 

 

$

128,822

 

 

 

 

 

$

 

 

 

 

8,370,107

 

 

$

 

$

38,153

 

$

(64,404

)

$

(40

)

$

(26,291

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,248

)

 

 

 

(41,248

)

Accretion of the redeemable

   series A-1 preferred stock to

   redeemable value

 

 

 

 

 

5,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,415

)

 

 

 

 

 

(5,415

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,150

 

 

 

 

 

 

1,150

 

Accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

 

37

 

BALANCE—March 31, 2020

 

 

12,000

 

 

$

134,237

 

 

 

 

 

$

 

 

 

 

8,370,107

 

 

$

 

$

33,888

 

$

(105,652

)

$

(3

)

$

(71,767

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,224

 

 

 

 

13,224

 

Accretion of the redeemable

   series A-1 preferred stock to

   redeemable value

 

 

 

 

 

5,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,644

)

 

 

 

 

 

(5,644

)

Issuance of the convertible and

   redeemable series A-2 preferred stock

 

 

 

 

 

 

 

 

17,500

 

 

 

152,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,140

 

 

 

 

 

 

1,140

 

Common stock issued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

794,639

 

 

 

 

 

25,021

 

 

 

 

 

 

25,021

 

Accumulated other comprehensive

   loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(90

)

 

(90

)

BALANCE—June 30, 2020

 

 

12,000

 

 

 

139,881

 

 

 

17,500

 

 

$

152,928

 

 

 

 

9,164,746

 

 

$

 

$

54,405

 

$

(92,428

)

$

(93

)

$

(38,116

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE—December 31, 2020

 

 

 

 

$

 

 

 

17,500

 

 

$

152,928

 

 

 

 

24,932,527

 

 

$

 

$

259,427

 

$

(122,353

)

$

71

 

$

137,145

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,596

)

 

 

 

(11,596

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,805

 

 

 

 

 

 

1,805

 

Dividend payment to the Series A-2

   preferred shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,100

)

 

 

 

 

 

(4,100

)

Common stock issued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

506,330

 

 

 

 

 

4,456

 

 

 

 

 

 

4,456

 

Accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

29

 

BALANCE—March 30, 2021

 

 

 

 

$

 

 

 

17,500

 

 

$

152,928

 

 

 

 

25,438,857

 

 

$

 

$

261,588

 

$

(133,949

)

$

100

 

$

127,739

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,483

)

 

 

 

(14,483

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,417

 

 

 

 

 

 

2,417

 

Dividend payment to the Series A-2

   preferred shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,100

)

 

 

 

 

 

(4,100

)

Common stock issued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

669,331

 

 

 

 

 

27,460

 

 

 

 

 

 

27,460

 

Accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

28

 

BALANCE—June 30, 2021

 

 

 

 

$

 

 

 

17,500

 

 

$

152,928

 

 

 

 

26,108,188

 

 

$

 

$

287,365

 

$

(148,432

)

$

128

 

$

139,061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3


 

 

MONTROSE ENVIRONMENTAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(26,079

)

 

$

(28,024

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Provision for bad debt

 

 

590

 

 

 

6,263

 

Depreciation and amortization

 

 

21,674

 

 

 

17,344

 

Amortization of right-of-use asset

 

 

4,025

 

 

 

 

Stock-based compensation expense

 

 

4,222

 

 

 

2,290

 

Fair value changes in embedded derivatives

 

 

1,120

 

 

 

7,781

 

Fair value changes in business acquisitions

   contingent consideration

 

 

24,035

 

 

 

3,983

 

Deferred income taxes

 

 

(254

)

 

 

(4,911

)

Other

 

 

(87

)

 

 

983

 

Debt extinguishment costs

 

 

4,052

 

 

 

 

Changes in operating assets and liabilities—net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable and contract assets

 

 

(31,009

)

 

 

7,427

 

Prepaid expenses and other current assets

 

 

1,316

 

 

 

(789

)

Accounts payable and other accrued liabilities

 

 

1,788

 

 

 

(8,296

)

Accrued payroll and benefits

 

 

(2,846

)

 

 

1,886

 

Payment of contingent consideration and other

   assumed purchase price obligations

 

 

(15,549

)

 

 

(6,175

)

Other assets

 

 

(107

)

 

 

(1,346

)

Change in operating leases

 

 

(3,937

)

 

 

 

Net cash used in operating activities

 

 

(17,046

)

 

 

(1,584

)

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(2,354

)

 

 

(3,160

)

Proprietary software development and other software costs

 

 

(208

)

 

 

(155

)

Purchase price true ups

 

 

(8,377

)