Highlights of the Third Quarter
2018*
Mistras Group, Inc. (MG: NYSE), a leading "one source" global
provider of technology-enabled asset protection solutions, reported
financial results for its third quarter ended September 30, 2018.
Dennis Bertolotti, Chief Executive Officer stated, "Results for
the third quarter reflect continued progress in strengthening the
Mistras brand and positioning the company for long-term
success. On the top line, the core business remains healthy
and performance in both aerospace and mechanical services was also
strong, while acquisitions were instrumental to quarterly growth.
More importantly, we achieved quarterly gross margins of 29%; our
highest level in two years, primarily reflecting a favorable sales
mix. Together with continued expense discipline,
consolidated non-GAAP operating margins improved by 170 basis
points and adjusted EBITDA was up 22% from a year ago.
Strategically, I am pleased with the margins achieved this quarter
and the actions we have taken to improve our mix of business, which
I believe will enable us to sustain better margins. At
the same time, we have used our strong year to date performance to
continue to build our balance sheet to support our growth
initiatives both organically as well as through additional
acquisitions. Finally, during this quarter, we completed the
sale of a subsidiary in our Products and Systems segment and took
strategic actions to address issues including the planned cessation
of certain activities in our International segment. These actions
will reduce the proportion of our lower-margin services and/or
non-core operations and consequently, will contribute to an overall
increase in our profit margins in 2019. I am confident we are
making significant progress strengthening our foundation, in order
to capitalize on the growth opportunities in both our core and
related markets over the long-term.”
Review of Consolidated Operations for the Third
QuarterRevenues for the third quarter of 2018 were $182
million, 1% higher than $180 million in the prior year
period. The increase in revenues was primarily due to the
contribution of acquisitions completed in 2017, as well as organic
growth that more than offset the reduction of approximately $10
million Services segment revenue decline related to the previously
disclosed lost contract.
Gross profit for the third quarter was up 9% year-over-year to
$52 million, and gross margin of 29% was a 200 basis point
year-over-year improvement.
Operating income for the third quarter was $3 million, compared
with a prior year operating loss of $10 million. On a
non-GAAP basis operating income for the third quarter was $10
million, up 46% compared with $7 million in the prior year
period.
Adjusted EBITDA for the quarter was $21 million, up 22% from a
year ago due to stronger gross margins and continued disciplined
overhead spending management. The Company generated $24.2 million
of net cash from operations during the first nine months of
2018. The Company’s net debt (total debt and capital leases
of $163.7 million less cash and cash equivalents of $17.1 million)
was $146.6 million at September 30, 2018.
Special Items Recorded in the QuarterDuring the
third quarter of 2018, the Company sold a subsidiary in the
Products and Systems segment, addressed a number of issues and made
provisions for the cessation of certain activities in its
International segment. The Company recorded a net, pre-tax charge
of $7.1 million ($5.4 million after-tax), or approximately $0.19
cents per diluted share.
The special items consisted of the following:
- In the Services Segment, we recorded a $5.9 million pre-tax,
pension withdrawal liability, related to the large contract we
exited in April 2018;
- In the International Segment, we recorded a $2.8 million
pre-tax, reorganization charge, primarily due to the impending exit
of approximately $20 million of relatively low margin staff leasing
services attributable to a German legislative change. The
reduction of these services is anticipated to have relatively
little, if any, impact on segment operating income. This charge
also includes employee settlement obligations in Brazil;
- In the Product and Systems Segment, we recorded a $2.4 million
gain on the sale of a subsidiary which we had previously disclosed
as having been marketed for sale; and
- We recorded an additional $0.8 million of special items across
all segments.
The majority of these items will have a positive impact on our
operating margins in 2019, as we prune the underlying non-core,
low-margin services, which has either already commenced or in the
case of the International segment, will commence at the beginning
of the second quarter in 2019.
The Company also recorded an additional 2017 Tax Reform Act
adjustment in the third quarter of 2018, which resulted in an
increase of $1.3 million of income tax, which had the effect of a
reduction of $0.04 in diluted earnings per share.
Performance by segment was as
follows:Services segment third quarter
revenues were $141 million, an increase of $4 million or 3% over
prior year, attributable primarily to acquisitions. Organic
growth was slightly positive, as Services was able to replace the
$10 million revenue lost from the large contract in April 2018.
Services segment third quarter GAAP operating income was $8 million
compared with $12 million in the prior year. Excluding the
special items mentioned above, third quarter non-GAAP operating
income would have been up 25% to $15 million and the operating
margin would have increased by 180 basis points. Improved
profitability reflects a better overall sales mix.
International segment third
quarter revenue decreased by $2 million or 4% over prior year,
attributable to an organic decline and unfavorable FX rates.
International third quarter GAAP operating loss was $0.7 million
compared with $1 million of operating income in the prior
year. On a non-GAAP basis, adjusted for the above-mentioned
special items, non-GAAP operating income was up 53% this quarter to
$2.1 million from $1.4 million a year ago, representing a 220 basis
point expansion of segment operating margin. As noted above,
we expect a reduction of approximately $20 million of annualized,
relatively low margin International revenue beginning in the second
quarter of 2019. The operating income impact of such revenue
reduction is anticipated to be close to neutral in 2019, as any
lost operating income is expected to be mostly offset with overhead
cost reductions.
Products and Systems segment third quarter
revenue decreased by $0.6 million or 9% over prior year. The
decrease is attributable to the above-mentioned disposition of a
subsidiary. GAAP operating income was $2.4 million for the third
quarter compared to a $15.6 million operating loss in the prior
year quarter. Products and Systems third quarter non-GAAP
operating income decreased by $0.2 million compared with the prior
year.
Mr. Bertolotti concluded, “The improvement of the oil and gas
market this year, compared to the low levels we saw last year,
extended into the third quarter. In addition, our aerospace
and complimentary mechanical services businesses also continued to
grow. We expect the oil and gas market to remain relatively
stable over the next few quarters. In the fourth quarter, we
will be comparing against a year ago quarter that benefited from
the release of pent-up demand from earlier deferred work. In
addition, our Services segment will be lapping a year ago quarter
that included more than $10 million of revenue from the large
customer site. We believe that remaining focused on
strengthening the organization for the long term is a more
effective strategy to leverage our competitive advantages across
the large, global end markets that we serve.”
Based on strong year-to-date performance, the Company’s
reaffirmed key metrics; revenue, adjusted EBITDA and capital
expenditures guidance for fiscal 2018. Due to the impact of
the various strategic actions, the Company believes GAAP earnings
guidance no longer provides a meaningful indication of the
Company’s financial performance:
- Total revenues expected to be between $725 million to $730
million;
- Adjusted EBITDA expected to be approximately $78 million;
and
- Capital expenditures expected to be between $17 million and $20
million.
Conference CallIn connection with this release,
Mistras will hold a conference call on November 6, 2018 at 9:00
a.m. (Eastern). The call will be broadcast over the Web and can be
accessed on Mistras' Website, www.mistrasgroup.com. Individuals in
the U.S. wishing to participate in the conference call by phone may
call 1-844-832-7227 and use confirmation code 8474976 when
prompted. The International dial-in number is 1-224-633-1529.
About Mistras Group, Inc.MISTRAS is a
leading “one source” global provider of technology-enabled asset
protection solutions used to evaluate the structural integrity of
critical energy, industrial and public infrastructure. Mission
critical services and solutions are delivered globally and provide
customers with asset life extension, improved productivity and
profitability, compliance with government safety and environmental
regulations, and enhanced risk management operational
decisions.
MISTRAS uniquely combines its industry-leading products and
technologies - 24/7 on-line monitoring of critical assets;
mechanical integrity (MI) and non-destructive testing (NDT)
services; destructive testing (DT) services; process and fixed
asset engineering and consulting services; and its world class
enterprise inspection data management and analysis software (PCMS™)
to provide comprehensive and competitive products, systems and
services solutions from a single source provider.
For more information, please visit the company's website at
www.mistrasgroup.com or contact Nestor S. Makarigakis, Group
Director, Marketing Communications at marcom@mistrasgroup.com.
Forward-Looking and Cautionary Statements
Certain statements made in this press release are
"forward-looking statements" about Mistras' financial results and
estimates, products and services, business model, strategy, growth
opportunities, profitability and competitive position, and other
matters. These forward-looking statements generally use words such
as "future," "possible," "potential," "targeted," "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "predict,"
"project," "will," "may," "should," "could," "would" and other
similar words and phrases. Such statements are not guarantees of
future performance or results, and will not necessarily be accurate
indications of the times at, or by which, such performance or
results will be achieved, if at all. These statements are subject
to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in these
statements. A list, description and discussion of these and other
risks and uncertainties can be found in the "Risk Factors" section
of the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 14, 2018, 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 and, if applicable,
certain 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. 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 and capital lease obligations,
less cash and cash equivalents.
Media Contact:Nestor S. MakarigakisGroup Director of Marketing
Communicationsmarcom@mistrasgroup.com 1(609)716-4000
Mistras Group, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(in thousands, except share and per share
data)
|
|
(unaudited) |
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
ASSETS |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
17,073 |
|
|
$ |
27,541 |
|
Accounts receivable, net |
|
155,615 |
|
|
138,080 |
|
Inventories |
|
11,133 |
|
|
10,503 |
|
Prepaid expenses and other current assets |
|
15,613 |
|
|
18,884 |
|
Total current assets |
|
199,434 |
|
|
195,008 |
|
Property, plant and equipment, net |
|
86,410 |
|
|
87,143 |
|
Intangible assets, net |
|
56,515 |
|
|
63,739 |
|
Goodwill |
|
199,625 |
|
|
203,438 |
|
Deferred income taxes |
|
1,534 |
|
|
1,606 |
|
Other assets |
|
4,630 |
|
|
3,507 |
|
Total assets |
|
$ |
548,148 |
|
|
$ |
554,441 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable |
|
$ |
12,937 |
|
|
$ |
10,362 |
|
Accrued expenses and other current liabilities |
|
73,425 |
|
|
65,561 |
|
Current portion of long-term debt |
|
2,225 |
|
|
2,358 |
|
Current portion of capital lease obligations |
|
5,085 |
|
|
5,875 |
|
Income taxes payable |
|
1,536 |
|
|
6,069 |
|
Total current liabilities |
|
95,208 |
|
|
90,225 |
|
Long-term debt, net of current portion |
|
147,926 |
|
|
164,520 |
|
Obligations under capital leases, net of current portion |
|
8,426 |
|
|
8,738 |
|
Deferred income taxes |
|
11,827 |
|
|
8,803 |
|
Other long-term liabilities |
|
6,482 |
|
|
11,363 |
|
Total liabilities |
|
269,869 |
|
|
283,649 |
|
Commitments and contingencies |
|
|
|
|
Equity |
|
|
|
|
Preferred stock, 10,000,000 shares authorized |
|
— |
|
|
— |
|
Common stock, $0.01 par value, 200,000,000 shares
authorized, 28,496,445 and 28,294,968 shares issued |
|
284 |
|
|
282 |
|
Additional paid-in capital |
|
226,054 |
|
|
222,425 |
|
Retained earnings |
|
72,614 |
|
|
64,717 |
|
Accumulated other comprehensive loss |
|
(20,856 |
) |
|
(16,805 |
) |
Total Mistras Group, Inc. stockholders’
equity |
|
278,096 |
|
|
270,619 |
|
Non-controlling interests |
|
183 |
|
|
173 |
|
Total equity |
|
278,279 |
|
|
270,792 |
|
Total liabilities and equity |
|
$ |
548,148 |
|
|
$ |
554,441 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Condensed Consolidated
Statements of Income (Loss)(in thousands, except
per share data)
|
Three months
ended |
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
|
|
|
|
|
|
|
|
Revenue |
$ |
182,169 |
|
|
$ |
179,570 |
|
|
$ |
561,592 |
|
|
$ |
513,326 |
|
Cost of revenue |
124,260 |
|
|
126,316 |
|
|
389,131 |
|
|
360,144 |
|
Depreciation |
5,577 |
|
|
5,357 |
|
|
16,902 |
|
|
15,790 |
|
Gross profit |
52,332 |
|
|
47,897 |
|
|
155,559 |
|
|
137,392 |
|
Selling, general and administrative expenses |
41,931 |
|
|
38,217 |
|
|
122,232 |
|
|
113,491 |
|
Impairment charges |
— |
|
|
15,810 |
|
|
— |
|
|
15,810 |
|
Pension withdrawal expense |
5,886 |
|
|
— |
|
|
5,886 |
|
|
— |
|
Gain on sale of subsidiary |
(2,384 |
) |
|
— |
|
|
(2,384 |
) |
|
— |
|
Research and engineering |
745 |
|
|
555 |
|
|
2,414 |
|
|
1,749 |
|
Depreciation and amortization |
2,920 |
|
|
2,738 |
|
|
8,834 |
|
|
7,854 |
|
Litigation expenses |
— |
|
|
1,200 |
|
|
— |
|
|
1,200 |
|
Acquisition-related expense (benefit), net |
217 |
|
|
(248 |
) |
|
(1,143 |
) |
|
(589 |
) |
Income (loss) from operations |
3,017 |
|
|
(10,375 |
) |
|
19,720 |
|
|
(2,123 |
) |
Interest expense |
1,894 |
|
|
1,081 |
|
|
5,581 |
|
|
3,114 |
|
Income (loss) before provision (benefit) for income
taxes |
1,123 |
|
|
(11,456 |
) |
|
14,139 |
|
|
(5,237 |
) |
Provision (benefit) for income taxes |
2,133 |
|
|
(4,503 |
) |
|
6,229 |
|
|
(2,199 |
) |
Net (loss) income |
(1,010 |
) |
|
(6,953 |
) |
|
7,910 |
|
|
(3,038 |
) |
Less: net income attributable to non-controlling
interests, net of taxes |
1 |
|
|
15 |
|
|
13 |
|
|
21 |
|
Net (loss) income attributable to Mistras
Group, Inc. |
$ |
(1,011 |
) |
|
$ |
(6,968 |
) |
|
$ |
7,897 |
|
|
$ |
(3,059 |
) |
Earnings (loss) per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
0.28 |
|
|
$ |
(0.11 |
) |
Diluted |
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
0.27 |
|
|
$ |
(0.11 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
28,429 |
|
|
28,274 |
|
|
28,360 |
|
|
28,465 |
|
Diluted |
28,429 |
|
|
28,274 |
|
|
29,447 |
|
|
28,465 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Operating Data by
Segment(in thousands)
|
Three months
ended |
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Revenues |
|
|
|
|
|
|
|
Services |
$ |
141,340 |
|
|
$ |
137,194 |
|
|
$ |
434,653 |
|
|
$ |
397,565 |
|
International |
36,671 |
|
|
38,200 |
|
|
116,238 |
|
|
106,360 |
|
Products and Systems |
5,716 |
|
|
6,268 |
|
|
17,286 |
|
|
16,925 |
|
Corporate and eliminations |
(1,558 |
) |
|
(2,092 |
) |
|
(6,585 |
) |
|
(7,524 |
) |
|
$ |
182,169 |
|
|
$ |
179,570 |
|
|
$ |
561,592 |
|
|
$ |
513,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Gross profit |
|
|
|
|
|
|
|
Services |
$ |
38,838 |
|
|
$ |
34,729 |
|
|
$ |
113,675 |
|
|
$ |
100,432 |
|
International |
10,877 |
|
|
10,432 |
|
|
34,273 |
|
|
29,720 |
|
Products and Systems |
2,604 |
|
|
2,753 |
|
|
7,707 |
|
|
7,313 |
|
Corporate and eliminations |
13 |
|
|
(17 |
) |
|
(96 |
) |
|
(73 |
) |
|
$ |
52,332 |
|
|
$ |
47,897 |
|
|
$ |
155,559 |
|
|
$ |
137,392 |
|
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 |
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Services: |
|
|
|
|
|
|
|
Income from operations (GAAP) |
$ |
8,289 |
|
|
$ |
11,699 |
|
|
$ |
36,892 |
|
|
$ |
31,211 |
|
Bad debt provision for a customer bankruptcy |
— |
|
|
— |
|
|
— |
|
|
1,200 |
|
Pension withdrawal expense |
5,886 |
|
|
— |
|
|
5,886 |
|
|
— |
|
Reorganization and other costs |
292 |
|
|
163 |
|
|
292 |
|
|
616 |
|
Acquisition-related expense (benefit), net |
181 |
|
|
(126 |
) |
|
(809 |
) |
|
(48 |
) |
Income before special items (non-GAAP) |
14,648 |
|
|
11,736 |
|
|
42,261 |
|
|
32,979 |
|
International: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
(662 |
) |
|
1,023 |
|
|
2,713 |
|
|
3,866 |
|
Reorganization and other costs |
2,808 |
|
|
379 |
|
|
3,544 |
|
|
455 |
|
Acquisition-related expense (benefit), net |
— |
|
|
— |
|
|
(409 |
) |
|
(501 |
) |
Income before special items (non-GAAP) |
2,146 |
|
|
1,402 |
|
|
5,848 |
|
|
3,820 |
|
Products and Systems: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
2,415 |
|
|
(15,573 |
) |
|
2,032 |
|
|
(16,913 |
) |
Impairment charges |
— |
|
|
15,810 |
|
|
— |
|
|
15,810 |
|
Gain on sale of subsidiary |
(2,384 |
) |
|
— |
|
|
(2,384 |
) |
|
— |
|
Reorganization and other costs |
— |
|
|
— |
|
|
29 |
|
|
— |
|
Income (loss) before special items (non-GAAP) |
31 |
|
|
237 |
|
|
(323 |
) |
|
(1,103 |
) |
Corporate and Eliminations: |
|
|
|
|
|
|
|
Loss from operations (GAAP) |
(7,025 |
) |
|
(7,524 |
) |
|
(21,917 |
) |
|
(20,287 |
) |
Litigation charges |
— |
|
|
1,200 |
|
|
— |
|
|
1,200 |
|
Reorganization and other costs |
305 |
|
|
— |
|
|
305 |
|
|
— |
|
Acquisition-related expense (benefit), net |
36 |
|
|
(122 |
) |
|
75 |
|
|
(40 |
) |
Loss before special items (non-GAAP) |
(6,684 |
) |
|
(6,446 |
) |
|
(21,537 |
) |
|
(19,127 |
) |
Total Company: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
3,017 |
|
|
$ |
(10,375 |
) |
|
$ |
19,720 |
|
|
$ |
(2,123 |
) |
Pension withdrawal expense |
5,886 |
|
|
— |
|
|
5,886 |
|
|
— |
|
Gain on sale of subsidiary |
(2,384 |
) |
|
— |
|
|
(2,384 |
) |
|
— |
|
Impairment charges |
— |
|
|
15,810 |
|
|
— |
|
|
15,810 |
|
Litigation charges |
— |
|
|
1,200 |
|
|
— |
|
|
1,200 |
|
Bad debt provision for a customer bankruptcy |
— |
|
|
— |
|
|
— |
|
|
1,200 |
|
Reorganization and other costs |
3,405 |
|
|
542 |
|
|
4,170 |
|
|
1,071 |
|
Acquisition-related expense (benefit), net |
217 |
|
|
(248 |
) |
|
(1,143 |
) |
|
(589 |
) |
Income before special items (non-GAAP) |
$ |
10,141 |
|
|
$ |
6,929 |
|
|
$ |
26,249 |
|
|
$ |
16,569 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Summary Cash Flow
Information(in thousands)
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
Net cash provided by (used in): |
|
|
|
Operating activities |
$ |
24,184 |
|
|
$ |
35,226 |
|
Investing activities |
(9,831 |
) |
|
(22,516 |
) |
Financing activities |
(23,905 |
) |
|
(7,114 |
) |
Effect of exchange rate changes on cash |
(916 |
) |
|
2,113 |
|
Net change in cash and cash equivalents |
$ |
(10,468 |
) |
|
$ |
7,709 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation of Net Cash
Provided by Operating Activities (GAAP) to Free Cash Flow
(non-GAAP)(in thousands)
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
GAAP: Net cash provided by operating activities |
$ |
24,184 |
|
|
$ |
35,226 |
|
Less: |
|
|
|
Purchases
of property, plant and equipment |
(15,386 |
) |
|
(14,413 |
) |
Purchases
of intangible assets |
(385 |
) |
|
(941 |
) |
non-GAAP: Free cash flow |
$ |
8,413 |
|
|
$ |
19,872 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofNet Income (Loss) to Adjusted
EBITDA(in thousands)
|
Three months
ended |
|
Nine months
ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
|
|
|
|
|
|
Net (loss) income |
$ |
(1,010 |
) |
|
$ |
(6,953 |
) |
|
$ |
7,910 |
|
|
$ |
(3,038 |
) |
Less: net income attributable to non-controlling
interests, net of taxes |
1 |
|
|
15 |
|
|
13 |
|
|
21 |
|
Net (loss) income attributable to Mistras
Group, Inc. |
$ |
(1,011 |
) |
|
$ |
(6,968 |
) |
|
$ |
7,897 |
|
|
$ |
(3,059 |
) |
Interest expense |
1,894 |
|
|
1,081 |
|
|
5,581 |
|
|
3,114 |
|
Provision (benefit) for income taxes |
2,133 |
|
|
(4,503 |
) |
|
6,229 |
|
|
(2,199 |
) |
Depreciation and amortization |
8,497 |
|
|
8,095 |
|
|
25,736 |
|
|
23,644 |
|
Share-based compensation expense |
1,931 |
|
|
1,759 |
|
|
4,760 |
|
|
5,139 |
|
Litigation charges |
— |
|
|
1,200 |
|
|
— |
|
|
1,200 |
|
Impairment charges |
— |
|
|
15,810 |
|
|
— |
|
|
15,810 |
|
Acquisition-related expense (benefit), net |
217 |
|
|
(248 |
) |
|
(1,143 |
) |
|
(589 |
) |
Reorganization and other related costs |
3,405 |
|
|
542 |
|
|
4,170 |
|
|
1,071 |
|
Pension withdrawal expense |
5,886 |
|
|
— |
|
|
5,886 |
|
|
— |
|
Gain on sale of subsidiary |
(2,384 |
) |
|
— |
|
|
(2,384 |
) |
|
— |
|
Bad debt provision for unexpected customer bankruptcy |
— |
|
|
— |
|
|
— |
|
|
1,200 |
|
Foreign exchange loss |
262 |
|
|
271 |
|
|
651 |
|
|
597 |
|
Adjusted EBITDA |
$ |
20,830 |
|
|
$ |
17,039 |
|
|
$ |
57,383 |
|
|
$ |
45,928 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofNet Income (Loss) (GAAP) and Diluted EPS (GAAP)
to Net Income Excluding Special Items
(non-GAAP)and Diluted EPS Excluding Special Items
(non-GAAP)(in thousands, except per share
data)
|
|
Three months ended September
30, |
|
Nine months ended September
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net (loss) income (GAAP) |
|
$ |
(1,011 |
) |
|
$ |
(6,968 |
) |
|
$ |
7,897 |
|
|
$ |
(3,059 |
) |
Special items, net of tax |
|
5,368 |
|
|
10,921 |
|
|
4,924 |
|
|
11,178 |
|
Net Income Excluding Special Items (non-GAAP) |
|
$ |
4,357 |
|
|
$ |
3,953 |
|
|
$ |
12,821 |
|
|
$ |
8,119 |
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP) |
|
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
0.27 |
|
|
$ |
(0.11 |
) |
Special items, net of tax |
|
0.19 |
|
|
0.38 |
|
|
0.17 |
|
|
0.38 |
|
Diluted EPS Excluding Special Items (non-GAAP) |
|
$ |
0.15 |
|
|
$ |
0.13 |
|
|
$ |
0.44 |
|
|
$ |
0.27 |
|
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