MISTRAS Group, Inc. (MG: NYSE), a leading "one source" global
multinational provider of integrated technology-enabled asset
protection solutions, reported financial results for its fourth
quarter and twelve months ended December 31, 2020.
Highlights of the Fourth Quarter
2020*
- Revenue of $160.8 million, a decrease of 10.2%
year-over-year, but an increase of 8.7% sequentially
- Gross profit margin of 30.7%, a
240 basis point improvement
- SG&A expenses of $40.7 million, a decrease of $1.9
million or 4.6%
- Income from operations of $4.7 million, an increase of
$2.3 million or 99.3%
- Operating cash flow of $26.0 million, an increase of
$7.4 million or
39.6%
- Free cash flow of $21.2 million, an increase of $7.5
million or 55.0%
Highlights for the Full Year 2020*
- Revenue of $592.6 million, a decrease of
20.8%
- Gross profit margin of 30.1%, a 110
basis point improvement
- SG&A expense of $156.9 million, a reduction of
$11.7 million, or 6.9%
- Operating cash flow of $67.8 million, an increase of
$8.7 million or 14.7%
- Free cash flow of $52.0 million, an increase of $15.8
million or 43.8%
- Full year debt repayment of $36.0 million, resulting in
a total debt reduction of 13.5%
* All comparisons are consolidated and versus
the equivalent prior year period, unless otherwise noted.
For the fourth quarter of 2020, consolidated revenue was $160.8
million, down from $179.0 million in the prior year period, but up
8.7% sequentially from the third quarter of 2020. Fourth quarter
revenues benefitted from a strengthening of the energy markets,
especially turnaround activity, offset by weakness in the
commercial aerospace market. For the fourth quarter, consolidated
gross profit margin improved to 30.7%, an increase of 240 basis
points compared to the year ago quarter. As a result, the gross
profit margin for the full year expanded by 110 basis points, which
is the third consecutive year the gross profit margin improved by
at least 100 basis points. For the fourth quarter of 2020, the
Company reported net income of $0.2 million or $0.01 per diluted
share, with adjusted EBITDA of $17.6 million, up 21.6% from $14.5
year million in the year ago quarter, and also up sequentially from
the third quarter.
Strong Cash Flow Resulting in Net Debt Reduced Over $45
Million in Fiscal 2020
The Company consistently generated significant operating cash
flow and free cash flow throughout 2020.
The Company generated $26.0 million and $21.2 million in
operating cash flows and free cash flows, respectively, for the
fourth quarter of 2020, compared to $18.6 million in operating cash
flows and $13.7 million in free cash flows, respectively, for the
same prior year period. For the full year, operating cash flow
increased by 14.7% to $67.8 million, which was used primarily to
reduce debt. Net debt was reduced by 18.9% over the course of the
year to $194.5 million at year end. Operating and free cash flow
benefitted from improvements in working capital, payroll tax
deferrals attributable to the CARES Act and lower capital
expenditures throughout fiscal 2020.
Chief Executive Officer Dennis Bertolotti commented, "The fourth
quarter was a very strong finish to what had been a very
challenging year, both in terms of uncertainty in the energy
markets and the impact of the COVID-19 pandemic on our domestic and
international operations. As energy prices and demand began to
stabilize in the latter part of 2020, offshore mechanical improved,
turnarounds were extended and data services performed well, which
lead to strong revenue as we finished out the year. In aerospace,
our penetration of the defense and space sectors continues to
increase, although the commercial aerospace market remains
relatively weak, particularly in Europe. Our Products segment had a
strong fourth quarter, fueled in part by an increase in
infrastructure spending where our bridge sensor technology has been
expanding. After declining by over one-third in the second quarter
of 2020 as compared to the prior year quarter, total company
revenues steadily improved over the balance of 2020, with fourth
quarter revenues down just over 10% from a strong prior year
quarter. Gross margins, which have been a strategic priority, were
once again up in the quarter and full year, while our cost
reductions made earlier in the year drove overhead costs down.
As a result of our steady improvement, we have been able to
leverage our asset-light business model to generate strong cash
flows, with free cash flow of just over $52 million for the full
year. Over the course of fiscal 2020, we paid down $36 million in
debt, which improved our financial flexibility and strengthened our
overall financial condition.”
Mr. Bertolotti additionally commented on the Company’s progress
with a number of growth initiatives and provided an outlook for the
upcoming quarter, “The demand for services that assure the safety,
reliability and regulatory compliance of our customer’s valuable
assets is on the rise. We are responding to this opportunity by
expanding the markets we serve and developing new technologies
needed to serve customer’s evolving needs. In the energy markets,
we are creating new opportunities in wind energy, where our remote
sensor technology can improve efficiencies and reduce operating
costs. In aerospace, we are now expanding our relationships with
emerging private space flight providers and gaining traction within
the defense industry. To serve these markets, we are leveraging our
existing technologies and expanding new capabilities. In each case,
our many years of experience offer a competitive advantage, which
we believe provides us the opportunity to further our industry
leadership. While the next few years are certain to see significant
change, we remain committed to serving the needs of our existing
markets. Energy, aerospace and industrial will remain at the
forefront of investment, both for today and in the future as they
are very large markets with opportunities to grow by gaining share.
This past year has clearly demonstrated that Mistras has built a
strong franchise in our key markets, and that the opportunity to
build on that foundation through both traditional and emerging
technologies is the key to increasing shareholder value.”
Segment Performance:
Services segment fourth quarter revenues were
$126.9 million, down 10% from a year ago due to overall slowdown in
energy and aerospace markets, but up 6% sequentially from the third
quarter attributable to offshore mechanical, turnarounds and data
services. For the fourth quarter, gross profit margin was 29.4%, up
from 26.7% in the fourth quarter of the prior year. Gross profit
margin benefitted from better utilization, favorable sales mix and
wage subsidies in Canada.
International segment fourth quarter revenues
were $30.7million, down 12.3% from $35.0 million a year ago due to
aerospace market softness partially offset by favorable foreign
exchange rates, but up 15.8% sequentially from the third quarter
primarily due to a major project in Germany and favorable foreign
exchange rates. International segment fourth quarter gross profit
margin was 30.8%, up from 28.7% in the year-ago quarter.
Products and Services revenue were $5.7 million
in the fourth quarter, up 6.4% from $5.4 million a year ago, while
gross profit was $3.0 million, or 52.5% compared to gross profit of
$2.8 million or 52.9% in the year ago quarter.
The Company generated $67.8 million of cash flows from
operations in fiscal 2020, compared with $59.1 million in fiscal
2019. Free cash flow was $52.0 million for the year, compared with
$36.2 million in the comparable prior year period, an increase of
43.8%. Free cash flow benefitted from an improvement in working
capital management, a tighter capital expenditure budget and the
deferral of payroll tax related payments under the CARES act.
The Company’s net debt (total debt less cash and cash
equivalents) was $194.5 million at December 31, 2020, compared to
$239.7 million at December 31, 2019. Total debt decreased by $34.5
million during the year from $254.7 million at December 31, 2019 to
$220.2 million at December 31, 2020. Cash and cash equivalents
increased by approximately $10.8 million from $15.0 million at
December 31, 2019 to $25.8 million at December 31, 2020.
Outlook for 2021
The Company’s business has been recovering over the past two
quarters, from the low experienced in the second quarter of 2020,
when the effect of COVID-19 was most impactful to its financial
results. Although energy prices and demand are currently stable,
the ongoing COVID-19 pandemic continues to impact the Company’s two
largest markets, Oil & Gas and Aerospace. The Company expects
annual revenue for 2021 to be higher than in 2020, however, first
quarter 2021 revenues will decline modestly compared with those of
prior year, due to a full quarter’s impact of COVID-19 in 2021 as
compared to a partial month impact in 2020. Moreover, first quarter
2021 revenue will be lower sequentially compared with the fourth
quarter of 2020, due to typical seasonality patterns. The Company
is optimistic that its revenue will continue to rebound once it
reaches the second quarter of fiscal 2021, and therefore expects
that revenue will commence year-on-year improvements beginning in
the second quarter of 2021. The Company expects that year-on-year
Adjusted EBITDA improvements will commence beginning in the first
quarter of 2021. This outlook is contingent on continuing
macroeconomic stability, including i) continuing stabilization in
crude oil markets, ii) a timely and effective implementation of
COVID-19 vaccinations in 2021 and iii), no new or increased
stay-in-place mandates resulting from an increased spread of
COVID-19, which would impact the Company’s ability to work as a
critical service provider.
Conference Call
In connection with this release, MISTRAS will hold a conference
call on March 17, 2021, at 9:00 a.m. (Eastern). The call will be
broadcast over the Web and can be accessed on MISTRAS' Website,
www.mistrasgroup.com. Individuals in the U.S. wishing to
participate in the conference call by phone may dial 1-844-832-7227
and use confirmation code 5229826 when prompted. The International
dial-in number is 1-224-633-1529. Those who wish to listen to the
call later can access an archived copy of the conference call at
the MISTRAS Website.
About MISTRAS Group, Inc. - One Source for Asset
Protection Solutions®
MISTRAS Group, Inc. (NYSE: MG) is a leading "one source"
multinational provider of integrated technology-enabled asset
protection solutions, helping to maximize the safety and
operational uptime for civilization’s most critical industrial and
civil assets.
Backed by an innovative, data-driven asset protection portfolio,
proprietary technologies, and a decades-long legacy of industry
leadership, MISTRAS leads clients in the oil and gas, aerospace and
defense, power generation, civil infrastructure, and manufacturing
industries towards achieving and maintaining operational
excellence. By supporting these organizations that help fuel our
vehicles and power our society; inspecting components that are
trusted for commercial, defense, and space craft; and building
real-time monitoring equipment to enable safe travel across
bridges, MISTRAS helps the world at large.
MISTRAS enhances value for its clients by integrating asset
protection throughout supply chains and centralizing integrity data
through a suite of Industrial IoT-connected digital software and
monitoring solutions. The company’s core capabilities also include
non-destructive testing (“NDT”) field inspections enhanced by
advanced robotics, laboratory quality control and assurance
testing, sensing technologies and NDT equipment, asset and
mechanical integrity engineering services, and light mechanical
maintenance and access services.
For more information about how MISTRAS helps protect
civilization’s critical infrastructure,
visit https://www.mistrasgroup.com/ or
contact Nestor S. Makarigakis, Group Vice President of Marketing
and 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 2020 Annual Report on Form 10-K dated March 16,
2021, as updated by our reports on Form 10-Q and Form 8-K. The
forward-looking statements are made as of the date hereof, and
MISTRAS undertakes no obligation to update such statements as a
result of new information, future events or otherwise.
Use of Non-GAAP 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 we
believe provide investors and management with supplemental
information relating to operating performance and trends that
facilitate comparisons between periods and with respect to
projected information. The term "Adjusted EBITDA" used in this
release is a financial measurement not calculated in accordance
with GAAP and is defined as net income attributable to MISTRAS
Group, Inc. plus: interest expense, provision for income taxes,
depreciation and amortization, share-based compensation expense and
certain acquisition related costs (including transaction due
diligence costs and adjustments to the fair value of contingent
consideration), foreign exchange (gain) loss, non-cash impairment
charges and, if applicable, certain additional special items which
are noted. A reconciliation of Adjusted EBITDA to a financial
measurement under GAAP is set forth in a table attached to this
press release. In the press release, the Company also uses the term
"non-GAAP Net Income", which is GAAP net income adjusted for
certain items management believes are unusual and non-recurring.
The Company uses the term “free cash flow”, a non-GAAP measurement
the Company defines as cash provided by operating activities less
capital expenditures (which is classified as an investing
activity). The Company also uses the term “net debt”, a non-GAAP
measurement defined as the sum of the current and long-term
portions of long-term debt, less cash and cash equivalent. In the
tables attached is a table reconciling "Net Income (Loss) (GAAP)"
to "Net Income Excluding Special Items (non-GAAP), which reconciles
the non-GAAP amount to a GAAP measurement. In addition, the Company
has also included in the attached tables non-GAAP measurement”
“Segment and Total Company Income (Loss) Before Special Items”,
reconciling these measurements to financial measurements under
GAAP.
Mistras Group, Inc. and
SubsidiariesUnaudited Consolidated Balance
Sheets(in thousands, except share and per
share data)
|
December 31, |
|
2020 |
|
2019 |
ASSETS |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
$ |
25,760 |
|
|
$ |
15,016 |
|
Accounts receivable, net |
107,628 |
|
|
135,997 |
|
Inventories |
13,134 |
|
|
13,413 |
|
Prepaid expenses and other current assets |
16,066 |
|
|
14,729 |
|
Total current assets |
162,588 |
|
|
179,155 |
|
Property, plant and equipment,
net |
92,681 |
|
|
98,607 |
|
Intangible assets, net |
68,642 |
|
|
109,537 |
|
Goodwill |
206,008 |
|
|
282,410 |
|
Deferred income taxes |
2,069 |
|
|
1,786 |
|
Other assets |
51,325 |
|
|
48,383 |
|
Total Assets |
$ |
583,313 |
|
|
$ |
719,878 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current Liabilities |
|
|
|
Accounts payable |
$ |
14,240 |
|
|
$ |
15,033 |
|
Accrued expenses and other current liabilities |
78,500 |
|
|
81,389 |
|
Current portion of long-term debt |
10,678 |
|
|
6,593 |
|
Current portion of finance lease obligations |
3,765 |
|
|
4,131 |
|
Income taxes payable |
2,664 |
|
|
2,094 |
|
Total current liabilities |
109,847 |
|
|
109,240 |
|
Long-term debt, net of current
portion |
209,538 |
|
|
248,120 |
|
Obligations under finance
leases, net of current portion |
11,115 |
|
|
13,043 |
|
Deferred income taxes |
8,236 |
|
|
21,290 |
|
Other long-term
liabilities |
47,358 |
|
|
42,163 |
|
Total Liabilities |
$ |
386,094 |
|
|
$ |
433,856 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Preferred stock, 10,000,000
shares authorized |
— |
|
|
— |
|
Common stock, $0.01 par value,
200,000,000 shares authorized, 29,234,143 and 28,945,472 shares
issued |
292 |
|
|
289 |
|
Additional paid-in capital |
234,638 |
|
|
229,205 |
|
Retained earnings (deficit) |
(21,848 |
) |
|
77,613 |
|
Accumulated other comprehensive loss |
(16,061 |
) |
|
(21,285 |
) |
Total Mistras Group, Inc. stockholders’ equity |
197,021 |
|
|
285,822 |
|
Non-controlling interests |
198 |
|
|
200 |
|
Total Equity |
197,219 |
|
|
286,022 |
|
Total Liabilities and Equity |
$ |
583,313 |
|
|
$ |
719,878 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Consolidated Statements of
Income (Loss) (in thousands, except per share data)
|
For the quarter ended December
31, |
|
For the year endedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenue |
$ |
160,777 |
|
|
$ |
178,991 |
|
|
$ |
592,571 |
|
|
$ |
748,586 |
|
Cost of revenue |
105,647 |
|
|
122,768 |
|
|
391,855 |
|
|
509,489 |
|
Depreciation |
5,785 |
|
|
5,640 |
|
|
22,185 |
|
|
21,800 |
|
Gross
profit |
49,345 |
|
|
50,583 |
|
|
178,531 |
|
|
217,297 |
|
Selling, general and administrative expenses |
40,659 |
|
|
42,607 |
|
|
156,937 |
|
|
168,621 |
|
Bad debt provision for troubled customers, net of recoveries |
— |
|
|
240 |
|
|
— |
|
|
3,038 |
|
Impairment charges |
— |
|
|
— |
|
|
106,062 |
|
|
— |
|
Pension withdrawal expense |
— |
|
|
359 |
|
|
— |
|
|
848 |
|
Research and engineering |
722 |
|
|
784 |
|
|
2,892 |
|
|
3,045 |
|
Depreciation and amortization |
3,161 |
|
|
4,353 |
|
|
13,520 |
|
|
16,733 |
|
Acquisition-related expense, net |
151 |
|
|
(95 |
) |
|
337 |
|
|
875 |
|
Income (loss) from
operations |
4,652 |
|
|
2,335 |
|
|
(101,217 |
) |
|
24,137 |
|
Interest expense |
3,545 |
|
|
3,633 |
|
|
12,955 |
|
|
13,698 |
|
Income (loss) before
provision for income taxes |
1,107 |
|
|
(1,298 |
) |
|
(114,172 |
) |
|
10,439 |
|
Provision (benefit) for income taxes |
939 |
|
|
(2,134 |
) |
|
(14,706 |
) |
|
4,359 |
|
Net income
(loss) |
168 |
|
|
836 |
|
|
(99,466 |
) |
|
6,080 |
|
Less: net income (loss) attributable to noncontrolling interests,
net of taxes |
(13 |
) |
|
7 |
|
|
(5 |
) |
|
20 |
|
Net income (loss)
attributable to Mistras Group, Inc. |
$ |
181 |
|
|
$ |
829 |
|
|
$ |
(99,461 |
) |
|
$ |
6,060 |
|
Earnings (loss) per common
share |
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
(3.41 |
) |
|
$ |
0.21 |
|
Diluted |
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
(3.41 |
) |
|
$ |
0.21 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
29,330 |
|
|
28,923 |
|
|
29,147 |
|
|
28,740 |
|
Diluted |
29,680 |
|
|
29,125 |
|
|
29,147 |
|
|
29,046 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Operating Data by
Segment(in thousands)
|
For the quarter ended December
31, |
|
For the year ended December
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
|
|
|
|
|
|
|
Services |
$ |
126,893 |
|
|
$ |
141,051 |
|
|
$ |
476,164 |
|
|
$ |
595,130 |
|
International |
30,669 |
|
|
34,969 |
|
|
107,556 |
|
|
144,271 |
|
Products and Systems |
5,703 |
|
|
5,362 |
|
|
16,449 |
|
|
18,583 |
|
Corporate and eliminations |
(2,488 |
) |
|
(2,391 |
) |
|
(7,598 |
) |
|
(9,398 |
) |
|
$ |
160,777 |
|
|
$ |
178,991 |
|
|
$ |
592,571 |
|
|
$ |
748,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended December
31, |
|
For the year ended December
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Gross
profit |
|
|
|
|
|
|
|
Services |
$ |
37,304 |
|
|
$ |
37,610 |
|
|
$ |
141,084 |
|
|
$ |
165,513 |
|
International |
9,434 |
|
|
10,032 |
|
|
31,046 |
|
|
43,145 |
|
Products and Systems |
2,992 |
|
|
2,835 |
|
|
6,826 |
|
|
8,639 |
|
Corporate and eliminations |
(385 |
) |
|
106 |
|
|
(425 |
) |
|
— |
|
|
$ |
49,345 |
|
|
$ |
50,583 |
|
|
$ |
178,531 |
|
|
$ |
217,297 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofSegment and Total Company Income from Operations
(GAAP) to Income before Special Items (non-GAAP)(in
thousands)
|
For the quarter ended December
31, |
|
For the year
ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Services: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
12,836 |
|
|
$ |
8,878 |
|
|
$ |
(44,222 |
) |
|
$ |
49,593 |
|
Impairment charges |
— |
|
|
— |
|
|
86,200 |
|
|
— |
|
Pension withdrawal expense |
— |
|
|
359 |
|
|
— |
|
|
848 |
|
Bad debt provision for troubled customers, net of recoveries |
— |
|
|
240 |
|
|
— |
|
|
3,018 |
|
Reorganization and other costs |
16 |
|
|
100 |
|
|
141 |
|
|
302 |
|
Legal settlement and litigation charges, net |
441 |
|
|
— |
|
|
81 |
|
|
— |
|
Acquisition-related expense (benefit), net |
151 |
|
|
(36 |
) |
|
337 |
|
|
541 |
|
Income before special items (unaudited, non-GAAP) |
$ |
13,444 |
|
|
$ |
9,541 |
|
|
$ |
42,537 |
|
|
$ |
54,302 |
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
567 |
|
|
$ |
701 |
|
|
$ |
(21,855 |
) |
|
$ |
5,856 |
|
Impairment charges |
— |
|
|
— |
|
|
19,862 |
|
|
— |
|
Reorganization and other costs |
977 |
|
|
(89 |
) |
|
1,290 |
|
|
266 |
|
Bad debt provision for troubled customers, net of recoveries |
— |
|
|
— |
|
|
— |
|
|
20 |
|
Income (loss) before special items (unaudited, non-GAAP) |
$ |
1,544 |
|
|
$ |
612 |
|
|
$ |
(703 |
) |
|
$ |
6,142 |
|
|
|
|
|
|
|
|
|
Products and
Systems: |
|
|
|
|
|
|
|
Loss from operations (GAAP) |
$ |
1,000 |
|
|
$ |
695 |
|
|
$ |
(936 |
) |
|
$ |
(529 |
) |
Reorganization and other costs |
— |
|
|
— |
|
|
5 |
|
|
218 |
|
Income (loss) before special items (non-GAAP) |
$ |
1,000 |
|
|
$ |
695 |
|
|
$ |
(931 |
) |
|
$ |
(311 |
) |
|
|
|
|
|
|
|
|
Corporate and
Eliminations: |
|
|
|
|
|
|
|
Loss from operations (GAAP) |
$ |
(9,751 |
) |
|
$ |
(7,939 |
) |
|
$ |
(34,204 |
) |
|
$ |
(30,783 |
) |
Legal settlement and litigation charges, net |
(301 |
) |
|
— |
|
|
(301 |
) |
|
— |
|
Loss on debt modification |
— |
|
|
— |
|
|
645 |
|
|
— |
|
Reorganization and other costs |
40 |
|
|
— |
|
|
177 |
|
|
104 |
|
Acquisition-related expense (benefit), net |
— |
|
|
(59 |
) |
|
— |
|
|
334 |
|
Loss before special items (unaudited, non-GAAP) |
$ |
(10,012 |
) |
|
$ |
(7,998 |
) |
|
$ |
(33,683 |
) |
|
$ |
(30,345 |
) |
|
|
|
|
|
|
|
|
Total
Company |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
4,652 |
|
|
$ |
2,335 |
|
|
$ |
(101,217 |
) |
|
$ |
24,137 |
|
Pension withdrawal expense |
— |
|
|
359 |
|
|
— |
|
|
848 |
|
Impairment charges |
— |
|
|
— |
|
|
106,062 |
|
|
— |
|
Bad debt provision for troubled customers, net of recoveries |
— |
|
|
240 |
|
|
— |
|
|
3,038 |
|
Reorganization and other costs |
1,033 |
|
|
11 |
|
|
1,613 |
|
|
890 |
|
Legal settlement and litigation charges, net |
140 |
|
|
— |
|
|
(220 |
) |
|
— |
|
Loss on debt modification |
— |
|
|
— |
|
|
645 |
|
|
— |
|
Acquisition-related expense (benefit), net |
151 |
|
|
(95 |
) |
|
337 |
|
|
875 |
|
Income before special items (unaudited, non-GAAP) |
$ |
5,976 |
|
|
$ |
2,850 |
|
|
$ |
7,220 |
|
|
$ |
29,788 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Summary Cash Flow
Information(in thousands)
|
For the quarter endedDecember
31, |
|
For the year endedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net cash provided by (used
in): |
|
|
|
|
|
|
|
Operating activities |
$ |
26,011 |
|
|
$ |
18,634 |
|
|
$ |
67,802 |
|
|
$ |
59,110 |
|
Investing activities |
(4,411 |
) |
|
(3,652 |
) |
|
(14,969 |
) |
|
(25,280 |
) |
Financing activities |
(19,092 |
) |
|
(14,616 |
) |
|
(44,169 |
) |
|
(44,137 |
) |
Effect of exchange rate
changes on cash |
1,136 |
|
|
278 |
|
|
2,080 |
|
|
(221 |
) |
Net change in cash and cash
equivalents |
$ |
3,644 |
|
|
$ |
644 |
|
|
$ |
10,744 |
|
|
$ |
(10,528 |
) |
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation of
Net Cash Provided by Operating Activities (GAAP) to Free
Cash Flow (non-GAAP)(in thousands)
|
For the quarter endedDecember
31, |
|
For the year endedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities
(GAAP) |
$ |
26,011 |
|
|
$ |
18,634 |
|
|
$ |
67,802 |
|
|
$ |
59,110 |
|
Less: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
(4,720 |
) |
|
(4,772 |
) |
|
(15,396 |
) |
|
(22,047 |
) |
Purchases of intangible assets |
(65 |
) |
|
(169 |
) |
|
(376 |
) |
|
(873 |
) |
Free cash flow
(non-GAAP) |
$ |
21,226 |
|
|
$ |
13,693 |
|
|
$ |
52,030 |
|
|
$ |
36,190 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation of
Net Income (Loss) (GAAP) to Adjusted EBITDA
(non-GAAP)(in thousands)
|
For the quarter ended December
31, |
|
For the year
endedDecember 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
168 |
|
|
$ |
836 |
|
|
$ |
(99,466 |
) |
|
$ |
6,080 |
|
Less: Net income (loss) attributable to noncontrolling interests,
net of taxes |
(13 |
) |
|
7 |
|
|
(5 |
) |
|
20 |
|
Net income (loss)
attributable to Mistras Group, Inc. |
$ |
181 |
|
|
$ |
829 |
|
|
$ |
(99,461 |
) |
|
$ |
6,060 |
|
Interest expense |
3,545 |
|
|
3,633 |
|
|
12,955 |
|
|
13,698 |
|
(Benefit) provision for income taxes |
939 |
|
|
(2,134 |
) |
|
(14,706 |
) |
|
4,359 |
|
Depreciation and amortization |
8,946 |
|
|
9,993 |
|
|
35,705 |
|
|
38,533 |
|
Share-based compensation expense |
1,539 |
|
|
1,174 |
|
|
5,851 |
|
|
5,766 |
|
Legal settlement and litigation charges, net |
140 |
|
|
— |
|
|
(220 |
) |
|
— |
|
Pension withdrawal expense |
— |
|
|
359 |
|
|
— |
|
|
848 |
|
Loss on debt modification |
— |
|
|
— |
|
|
645 |
|
|
— |
|
Impairment charges |
— |
|
|
— |
|
|
106,062 |
|
|
— |
|
Acquisition-related expense (benefit), net |
151 |
|
|
(95 |
) |
|
337 |
|
|
875 |
|
Reorganization and other costs |
1,033 |
|
|
11 |
|
|
1,613 |
|
|
890 |
|
Bad debt provision for troubled customers, net of recoveries |
— |
|
|
240 |
|
|
— |
|
|
3,038 |
|
Foreign exchange (gain) loss |
1,135 |
|
|
466 |
|
|
3,100 |
|
|
(535 |
) |
Adjusted
EBITDA |
$ |
17,609 |
|
|
$ |
14,476 |
|
|
$ |
51,881 |
|
|
$ |
73,532 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofNet Income (Loss) (GAAP) and Diluted EPS (GAAP)
to Net Income (Loss) Excluding Special Items (non-GAAP)
and Diluted EPS Excluding Special Items
(non-GAAP)(tabular dollars in thousands, except per share
data)
|
For the quarter ended December 31, |
|
For the year ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income (loss) attributable to Mistras Group, Inc.
(GAAP) |
$ |
181 |
|
|
$ |
829 |
|
|
$ |
(99,461 |
) |
|
$ |
6,060 |
|
Special items |
1,324 |
|
|
515 |
|
|
108,437 |
|
|
5,651 |
|
Tax impact on special items |
(242 |
) |
|
47 |
|
|
(14,475 |
) |
|
(1,260 |
) |
Special items, net of tax |
$ |
1,082 |
|
|
$ |
562 |
|
|
$ |
93,962 |
|
|
$ |
4,391 |
|
Net income (loss)
attributable to Mistras Group, Inc. Excluding Special Items
(non-GAAP) |
$ |
1,263 |
|
|
$ |
1,391 |
|
|
$ |
(5,499 |
) |
|
$ |
10,451 |
|
|
|
|
|
|
|
|
|
Diluted EPS
(GAAP) |
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
(3.41 |
) |
|
$ |
0.21 |
|
Special items, net of tax |
0.04 |
|
|
0.02 |
|
|
3.22 |
|
|
0.15 |
|
Diluted EPS Excluding
Special Items (non-GAAP) |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
(0.19 |
) |
|
$ |
0.36 |
|
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