MISTRAS Group, Inc. (MG: NYSE), a leading "one source"
multinational provider of integrated technology-enabled asset
protection solutions, reported financial results for its fourth
quarter and year ended December 31, 2021.
Highlights of the Fourth Quarter
2021*
- Revenue of $171.2 million, an
increase of 6.5%
- Net cash from operating
activities of $19.8 million and free cash flow of $16.5
million
- Reduction in total gross debt
of $13.3 million
Highlights of the Full Year
2021*
- Revenue of $677.1 million, an
increase of 14.3% of organic growth
- Gross profit of $197.1
million, up 10.4% with gross profit margin of 29.1%
- SG&A expenses of $161.3
million, up 2.7% due to the reversal of remaining COVID-19
temporary cost reductions in August 2021
- Operating income before
special items of $22.3 million
- Net income of $3.9
million
- Adjusted EBITDA of $63.0
million, up 21.4%; Adjusted EBITDA Margin of 9.3%, up 50
bps
* All comparisons are
consolidated and versus the equivalent prior year period, unless
otherwise noted.
Fourth quarter 2021 revenue growth of 6.5% came in
at the high end of the range anticipated by the Company, after its
third quarter outlook commentary. Fourth quarter 2021 gross profit
was essentially flat with the year ago period, primarily due to
higher benefit costs in the current year period and lower wage
subsidies received than in the prior year period. Selling, general
and administrative expenses in the fourth quarter of 2021 were
$42.8 million, up from $40.5 million in the fourth quarter of 2020,
due to the reversal of remaining COVID-19 temporary cost reductions
in August 2021, which had been initially implemented in 2020.
Full year revenue growth in 2021 of 14.3% reflects
continued recovery in the Company’s primary end markets including
Energy (Oil and Gas and Power Generation) and Other Process
Industries. For the full year 2021, gross profit increased $18.6
million or 10.4%, with gross profit margin of 29.1% compared to
30.1% in the prior year. On a full year basis in 2021, selling,
general and administrative expenses were up just 2.7%, despite the
significant revenue increase and the reversal of temporary COVID-19
cost reductions. Net income was $3.9 million for the full year
2021, compared to a net loss in 2020. Adjusted EBITDA was $63.0
million for 2021, an increase of 21.4% as compared to $51.9 million
for full year 2020.
Chief Executive Officer Dennis Bertolotti
commented, “We met both our top and bottom-line financial
expectations for the year. In the fourth quarter, we continued
approaching pre-pandemic levels of performance, especially in our
Energy markets, where strong energy prices led to more stable
demand for our services. As our core markets continue to recover,
they are also adapting by developing new technologies and products
to meet the demands of the ever-changing environment. MISTRAS is
evolving with these markets, and we expect to continue to outpace
the growth of our markets, by offering innovative technologies and
solutions that meet the demanding needs of our customers. Our
continued focus on controlling overhead has also led to a
significant improvement in our operating results, as evident by our
significant increase in operating income before special items by
over 200% in 2021 compared to 2020, despite the higher costs and
lower wage subsidies in the current year. We also effectively
managed our working capital in 2021 and were able to reduce our
days sales outstanding to just under 60 days, which is our lowest
level in over three years. I was particularly pleased with our free
cash flow generation in the fourth quarter of $16.5 million, which
was well over 100% of adjusted EBITDA in the quarter. The strength
of the fourth quarter increased our annual free cash flow to $23.0
million, for a 36.5% conversion of free cash flow to adjusted
EBITDA**. I expect that we will return to our historical level of
an approximate 50% conversion rate in 2022.”
Mr. Bertolotti additionally commented on the
Company’s progress noting, “I am very pleased with the ongoing
recovery in our core business throughout 2021; we are gradually
rebounding back towards a pre-pandemic level of activity. Our
recently launched data solutions offerings are also developing
nicely, including our MISTRAS OneSuite™ software ecosystem. This
expanding application provides customers with a single-access
portal for cross-functional data activities and includes access to
over 85 integrated applications, all on one centralized,
inter-connected and secured platform. We implemented OneSuite at
nearly 100 customer sites in 2021 and installed over 1,000
individual subscriptions. These inaugural users are currently
executing several million processes per month within the related
applications, and we anticipate further expansion of OneSuite
utilization throughout 2022.”
Mr. Bertolotti further continued, “I am also very
pleased with the ongoing development of our Sensoria™ Wind Blade
Monitoring and Sensoria Insights Web Portal, which provides
real-time detection and visualization of wind turbine blade damage,
utilizing our recently patented wind turbine blade monitoring
systems. We are currently working on our proof of concept for this
initiative on several dozen wind turbines, and we anticipate
further commercial wins in the later part of 2022. We anticipate
monitoring up to 100 wind turbines by the end of 2022 and expanding
our capacity to allow for the ability to monitor up to 1,000 wind
turbines by the end of 2023. Both OneSuite and Sensoria represent
an evolution in asset protection, through which MISTRAS is uniquely
qualified to leverage our proven capabilities and expertise such as
acoustic emission monitoring, while innovating to meet the needs of
the changing global landscape. These newer, data-centric
capabilities favorably complement our more established MISTRAS
Digital® tool - a mobile, cloud-based field inspection, execution,
and reporting platform, which digitalizes the field inspection
process via a powerful, end-to-end workflow solution.
All of these inter-related data solutions combine together, to
create a robust, predictive analytical platform, delivering an
enhanced customer ROI. I am very excited about our prospects for
growth in these new areas of opportunity in 2022 and
beyond.”
** Adjusted EBITDA and free cash flow are both
non-GAAP financial measurements. Information about these
measurements are discussed later in the press release and attached
to this press release are tables reconciling these financial
measurements to comparable financial measurements determined under
US GAAP.
Performance by certain segments during the fourth
quarter was as follows:
Services segment fourth quarter
revenues were $141.1 million, up 11.2% from $126.9 million in the
prior year quarter. Services segment revenues continue
to reflect recovery in the Energy markets. For the fourth quarter,
gross profit was $38.8 million, compared to $37.3 million in the
prior year. Gross profit margin was 27.5% for the fourth quarter of
2021, compared to 29.4% in the fourth quarter of the prior year.
This decrease of 190 basis points was due to higher benefit costs
in the US and lower wage subsidies received in Canada, both as
compared to the prior year period.
International segment fourth
quarter revenues were $28.5 million, down 6.9% from $30.7 million
in the prior year quarter due to timing of projects and unfavorable
foreign currency impacts. International segment fourth
quarter gross profit margin was 28.0%, compared to 30.8% in the
prior year.
The Company generated $42.3 million of net cash
from operating activities in 2021, compared with $67.8 million in
2020. Free cash flow was $23.0 million for the year
ended December 31, 2021, compared with $52.0 million for the year
ended December 31, 2020.
The Company’s net debt (total debt less cash and
cash equivalents) was $178.5 million as of December 31, 2021,
compared to $194.5 million as of December 31, 2020. Gross debt
decreased by $17.6 million during the twelve months ended December
31, 2021, from $220.2 million at the end of 2020 to $202.6 million
as of December 31, 2021.
Outlook for 2022Although energy prices and
demand improved during 2021, the ongoing COVID-19 pandemic
continues to impact the Company. This effect is most pronounced on
the Company's second largest market Aerospace and Defense,
especially in the commercial sector, where a rebound to
pre-pandemic levels is lagging other end markets. More recently,
with crude oil prices now significantly exceeding pre-pandemic
levels, this has caused many refineries to run longer cycle times,
resulting in the postponement or scaling back of planned
inspections. Consequently, this may impact the spring turnaround
timing, as customers that initially had heavy overlap of projects
in certain regions, are either curtailing or deferring work to
later in the year. Regardless, the Company believes conditions will
improve throughout 2022. For the first quarter of 2022, the Company
expects revenue to be a low single digit increase as compared to
the first quarter of 2021. The Company expects Adjusted EBITDA to
be essentially flat in the first quarter of 2022, compared to the
first quarter of 2021. The first quarter of 2021 benefitted from a
significant level of Canadian wages subsidies, and the temporary
COVID cost reductions were fully in place through August of 2021,
thus also benefiting the first quarter of 2021. Our outlook is
contingent on continuing geopolitical and macroeconomic
stability.
Conference Call In connection
with this release, MISTRAS will hold a conference call on March 10,
2022, 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
#7568697 when prompted. The International dial-in number is
1-224-633-1529. Those who wish to listen to the call later
can access an archived copy of the conference call at the MISTRAS
Website.
About MISTRAS Group, Inc. - One Source for
Asset Protection Solutions®
MISTRAS Group, Inc. (NYSE: MG) is a leading "one
source" multinational provider of integrated technology-enabled
asset protection solutions, helping to maximize the safety and
operational uptime for civilization’s most critical industrial and
civil assets.
Backed by an innovative, data-driven asset
protection portfolio, proprietary technologies, and decades-long
legacy of industry leadership, MISTRAS leads clients in the oil and
gas, aerospace and defense, power generation, civil infrastructure,
and manufacturing industries towards achieving and maintaining
operational excellence. By supporting these organizations that help
fuel our vehicles and power our society; inspecting components that
are trusted for commercial, defense, and space craft; and building
real-time monitoring equipment to enable safe travel across
bridges, MISTRAS helps the world at large.
MISTRAS enhances value for its clients by
integrating asset protection throughout supply chains and
centralizing integrity data through a suite of Industrial
IoT-connected digital software and monitoring solutions. The
company’s core capabilities also include non-destructive testing
(“NDT”) field inspections enhanced by advanced robotics, laboratory
quality control and assurance testing, sensing technologies and NDT
equipment, asset and mechanical integrity engineering services, and
light mechanical maintenance and access services.
For more information about how MISTRAS helps
protect civilization’s critical infrastructure,
visit www.mistrasgroup.com or contact Nestor S. Makarigakis,
Group Vice President of Marketing at marcom@mistrasgroup.com.
Forward-Looking and Cautionary
StatementsCertain statements made in this press release
are "forward-looking statements" about MISTRAS' financial results
and estimates, products and services, business model, strategy,
growth opportunities, profitability and competitive position, and
other matters. These forward-looking statements generally use words
such as "future," "possible," "potential," "targeted,"
"anticipate," "believe," "estimate," "expect," "intend," "plan,"
"predict," "project," "will," "may," "should," "could," "would" and
other similar words and phrases. Such statements are not guarantees
of future performance or results, and will not necessarily be
accurate indications of the times at, or by which, such performance
or results will be achieved, if at all. These statements are
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
these statements. A list, description and discussion of these and
other risks and uncertainties can be found in the "Risk Factors"
section of the Company's 2020 Annual Report on Form 10-K dated
March 16, 2021, as updated by our reports on Form 10-Q and Form
8-K. The forward-looking statements are made as of the date hereof,
and MISTRAS undertakes no obligation to update such statements as a
result of new information, future events or otherwise.
Use of Non-GAAP MeasuresIn
addition to financial information prepared in accordance with
generally accepted accounting principles in the U.S. (GAAP), this
press release also contains adjusted financial measures that we
believe provide investors and management with supplemental
information relating to operating performance and trends that
facilitate comparisons between periods and with respect to
projected information. The term "Adjusted EBITDA" used in this
release is a financial measurement not calculated in accordance
with GAAP and is defined as net income attributable to MISTRAS
Group, Inc. plus: interest expense, provision for income taxes,
depreciation and amortization, share-based compensation expense and
certain acquisition related costs (including transaction due
diligence costs and adjustments to the fair value of contingent
consideration), foreign exchange (gain) loss, non-cash impairment
charges and, if applicable, certain additional special items which
are noted. A reconciliation of Adjusted EBITDA to a financial
measurement under GAAP is set forth in a table attached to this
press release. The Company also uses the term “net debt”, a
non-GAAP measurement defined as the sum of the current and
long-term portions of long-term debt, less cash and cash
equivalents and 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). A reconciliation of these non-GAAP financial
measurement to GAAP are also set forth in tables attached to this
press release. In the tables attached is also a table
reconciling “Segment and Total Company Income (Loss) from
operations (GAAP) to Income (Loss) before special items (non-GAAP),
“Net Income (Loss) (GAAP)" to "Net Income (Loss) Excluding Special
Items (non-GAAP)”, and “Diluted EPS (GAAP)” to “Diluted EPS
Excluding Special Items (non-GAAP)” which reconciles the non-GAAP
amount to a GAAP measurement.
Mistras Group, Inc. and
SubsidiariesUnaudited Consolidated Balance
Sheets(in thousands, except share and per
share data)
|
December 31, |
|
2021 |
|
2020 |
ASSETS |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
$ |
24,110 |
|
|
$ |
25,760 |
|
Accounts receivable, net |
|
109,511 |
|
|
|
107,628 |
|
Inventories |
|
12,686 |
|
|
|
13,134 |
|
Prepaid expenses and other current assets |
|
15,031 |
|
|
|
16,066 |
|
Total current assets |
|
161,338 |
|
|
|
162,588 |
|
Property, plant and equipment, net |
|
86,578 |
|
|
|
92,681 |
|
Intangible assets, net |
|
59,381 |
|
|
|
68,642 |
|
Goodwill |
|
205,439 |
|
|
|
206,008 |
|
Deferred income taxes |
|
2,174 |
|
|
|
2,069 |
|
Other assets |
|
47,285 |
|
|
|
51,325 |
|
Total Assets |
$ |
562,195 |
|
|
$ |
583,313 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current Liabilities |
|
|
|
Accounts payable |
$ |
12,870 |
|
|
$ |
14,240 |
|
Accrued expenses and other current liabilities |
|
83,863 |
|
|
|
78,500 |
|
Current portion of long-term debt |
|
20,162 |
|
|
|
10,678 |
|
Current portion of finance lease obligations |
|
3,765 |
|
|
|
3,765 |
|
Income taxes payable |
|
755 |
|
|
|
2,664 |
|
Total current liabilities |
|
121,415 |
|
|
|
109,847 |
|
Long-term debt, net of current portion |
|
182,403 |
|
|
|
209,538 |
|
Obligations under finance leases, net of current portion |
|
9,752 |
|
|
|
11,115 |
|
Deferred income taxes |
|
8,385 |
|
|
|
8,236 |
|
Other long-term liabilities |
|
39,328 |
|
|
|
47,358 |
|
Total Liabilities |
$ |
361,283 |
|
|
$ |
386,094 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Preferred stock, 10,000,000 shares authorized |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 200,000,000 shares authorized,
29,546,263 and 29,234,143 shares issued |
|
295 |
|
|
|
292 |
|
Additional paid-in capital |
|
238,687 |
|
|
|
234,638 |
|
Accumulated Deficit |
|
(17,988 |
) |
|
|
(21,848 |
) |
Accumulated other comprehensive loss |
|
(20,311 |
) |
|
|
(16,061 |
) |
Total Mistras Group, Inc. stockholders’ equity |
|
200,683 |
|
|
|
197,021 |
|
Non-controlling interests |
|
229 |
|
|
|
198 |
|
Total Equity |
|
200,912 |
|
|
|
197,219 |
|
Total Liabilities and Equity |
$ |
562,195 |
|
|
$ |
583,313 |
|
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 ended December
31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Revenue |
$ |
171,163 |
|
|
$ |
160,777 |
|
|
$ |
677,131 |
|
$ |
592,571 |
|
Cost of revenue |
|
115,233 |
|
|
|
105,647 |
|
|
|
457,013 |
|
|
391,855 |
|
Depreciation |
|
6,336 |
|
|
|
5,785 |
|
|
|
22,971 |
|
|
22,185 |
|
Gross profit |
|
49,594 |
|
|
|
49,345 |
|
|
|
197,147 |
|
|
178,531 |
|
Selling, general and administrative expenses |
|
42,755 |
|
|
|
40,519 |
|
|
|
161,334 |
|
|
157,157 |
|
Legal settlement and litigation charges (benefit), net |
|
1,012 |
|
|
|
140 |
|
|
|
2,042 |
|
|
(220 |
) |
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
106,062 |
|
Research and engineering |
|
576 |
|
|
|
722 |
|
|
|
2,518 |
|
|
2,892 |
|
Depreciation and amortization |
|
2,880 |
|
|
|
3,161 |
|
|
|
11,950 |
|
|
13,520 |
|
Acquisition-related expense, net |
|
65 |
|
|
|
151 |
|
|
|
1,133 |
|
|
337 |
|
Income (loss) from operations |
|
2,306 |
|
|
|
4,652 |
|
|
|
18,170 |
|
|
(101,217 |
) |
Interest expense |
|
2,187 |
|
|
|
3,545 |
|
|
|
10,882 |
|
|
12,955 |
|
Income (loss) before provision for income
taxes |
|
119 |
|
|
|
1,107 |
|
|
|
7,288 |
|
|
(114,172 |
) |
Provision (benefit) for income taxes |
|
208 |
|
|
|
939 |
|
|
|
3,395 |
|
|
(14,706 |
) |
Net income (loss) |
|
(89 |
) |
|
|
168 |
|
|
|
3,893 |
|
|
(99,466 |
) |
Less: net income (loss) attributable to noncontrolling interests,
net of taxes |
|
5 |
|
|
|
(13 |
) |
|
|
33 |
|
|
(5 |
) |
Net income (loss) attributable to Mistras
Group, Inc. |
$ |
(94 |
) |
|
$ |
181 |
|
|
$ |
3,860 |
|
$ |
(99,461 |
) |
Earnings (loss) per common share |
|
|
|
|
|
|
|
Basic |
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
0.13 |
|
$ |
(3.41 |
) |
Diluted |
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
0.13 |
|
$ |
(3.41 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
29,637 |
|
|
|
29,330 |
|
|
|
29,572 |
|
|
29,147 |
|
Diluted |
|
30,138 |
|
|
|
29,680 |
|
|
|
30,130 |
|
|
29,147 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Operating Data by
Segment(in thousands)
|
For the quarter ended December
31, |
|
For the year ended December
31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
|
|
|
|
|
|
Services |
$ |
141,136 |
|
|
$ |
126,893 |
|
|
$ |
555,387 |
|
|
$ |
476,164 |
|
International |
|
28,546 |
|
|
|
30,669 |
|
|
|
117,245 |
|
|
|
107,556 |
|
Products and Systems |
|
4,332 |
|
|
|
5,703 |
|
|
|
13,831 |
|
|
|
16,449 |
|
Corporate and eliminations |
|
(2,851 |
) |
|
|
(2,488 |
) |
|
|
(9,332 |
) |
|
|
(7,598 |
) |
|
$ |
171,163 |
|
|
$ |
160,777 |
|
|
$ |
677,131 |
|
|
$ |
592,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended December
31, |
|
For the year ended December
31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Gross profit |
|
|
|
|
|
|
|
Services |
$ |
38,797 |
|
|
$ |
37,304 |
|
|
$ |
155,384 |
|
|
$ |
141,084 |
|
International |
|
8,004 |
|
|
|
9,434 |
|
|
|
34,282 |
|
|
|
31,046 |
|
Products and Systems |
|
2,346 |
|
|
|
2,992 |
|
|
|
7,001 |
|
|
|
6,826 |
|
Corporate and eliminations |
|
447 |
|
|
|
(385 |
) |
|
|
480 |
|
|
|
(425 |
) |
|
$ |
49,594 |
|
|
$ |
49,345 |
|
|
$ |
197,147 |
|
|
$ |
178,531 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation
ofSegment and Total Company Income from Operations
(GAAP) to Income from Operations before Special
Items (non-GAAP)(in thousands)
|
For the quarter ended December
31, |
|
For the year
ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Services: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
9,467 |
|
|
$ |
12,836 |
|
|
$ |
48,458 |
|
|
$ |
(44,222 |
) |
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
86,200 |
|
Reorganization and other costs |
|
32 |
|
|
|
16 |
|
|
|
129 |
|
|
|
141 |
|
Legal settlement and litigation charges, net |
|
— |
|
|
|
441 |
|
|
|
1,650 |
|
|
|
81 |
|
Acquisition-related expense, net |
|
94 |
|
|
|
151 |
|
|
|
1,128 |
|
|
|
337 |
|
Income before special items (unaudited, non-GAAP) |
$ |
9,593 |
|
|
$ |
13,444 |
|
|
$ |
51,365 |
|
|
$ |
42,537 |
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
(319 |
) |
|
$ |
567 |
|
|
$ |
1,839 |
|
|
$ |
(21,855 |
) |
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,862 |
|
Reorganization and other costs |
|
300 |
|
|
|
977 |
|
|
|
424 |
|
|
|
1,290 |
|
Legal settlement and litigation charges, net |
|
737 |
|
|
|
— |
|
|
|
737 |
|
|
|
— |
|
Bad debt provision for troubled customers, net of recoveries |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income (loss) before special items (unaudited, non-GAAP) |
$ |
718 |
|
|
$ |
1,544 |
|
|
$ |
3,000 |
|
|
$ |
(703 |
) |
|
|
|
|
|
|
|
|
Products and Systems: |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
536 |
|
|
$ |
1,000 |
|
|
$ |
(117 |
) |
|
$ |
(936 |
) |
Reorganization and other costs |
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
5 |
|
Income (loss) before special items (unaudited, non-GAAP) |
$ |
536 |
|
|
$ |
1,000 |
|
|
$ |
(90 |
) |
|
$ |
(931 |
) |
|
|
|
|
|
|
|
|
Corporate and Eliminations: |
|
|
|
|
|
|
|
Loss from operations (GAAP) |
$ |
(7,378 |
) |
|
$ |
(9,751 |
) |
|
$ |
(32,010 |
) |
|
$ |
(34,204 |
) |
Legal settlement and litigation charges (benefit), net |
|
275 |
|
|
|
(301 |
) |
|
|
(345 |
) |
|
|
(301 |
) |
Loss on debt modification |
|
— |
|
|
|
— |
|
|
|
278 |
|
|
|
645 |
|
Reorganization and other costs |
|
93 |
|
|
|
40 |
|
|
|
93 |
|
|
|
177 |
|
Acquisition-related expense, net |
|
(29 |
) |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
Loss before special items (unaudited, non-GAAP) |
$ |
(7,039 |
) |
|
$ |
(10,012 |
) |
|
$ |
(31,979 |
) |
|
$ |
(33,683 |
) |
|
|
|
|
|
|
|
|
Total Company |
|
|
|
|
|
|
|
Income (loss) from operations (GAAP) |
$ |
2,306 |
|
|
$ |
4,652 |
|
|
$ |
18,170 |
|
|
$ |
(101,217 |
) |
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
106,062 |
|
Reorganization and other costs |
|
425 |
|
|
|
1,033 |
|
|
|
673 |
|
|
|
1,613 |
|
Legal settlement and litigation charges (benefit), net |
|
1,012 |
|
|
|
140 |
|
|
|
2,042 |
|
|
|
(220 |
) |
Loss on debt modification |
|
— |
|
|
|
— |
|
|
|
278 |
|
|
|
645 |
|
Acquisition-related expense, net |
|
65 |
|
|
|
151 |
|
|
|
1,133 |
|
|
|
337 |
|
Income before special items (unaudited, non-GAAP) |
$ |
3,808 |
|
|
$ |
5,976 |
|
|
$ |
22,296 |
|
|
$ |
7,220 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Summary Cash Flow
Information(in thousands)
|
For the quarter ended December
31, |
|
For the year ended December
31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net cash provided by (used in): |
|
|
|
|
|
|
|
Operating activities |
$ |
19,792 |
|
|
$ |
26,011 |
|
|
$ |
42,261 |
|
|
$ |
67,802 |
|
Investing activities |
|
(3,057 |
) |
|
|
(4,411 |
) |
|
|
(18,551 |
) |
|
|
(14,969 |
) |
Financing activities |
|
(14,379 |
) |
|
|
(19,092 |
) |
|
|
(23,245 |
) |
|
|
(44,169 |
) |
Effect of exchange rate changes on cash |
|
(843 |
) |
|
|
1,136 |
|
|
|
(2,115 |
) |
|
|
2,080 |
|
Net change in cash and cash equivalents |
$ |
1,513 |
|
|
$ |
3,644 |
|
|
$ |
(1,650 |
) |
|
$ |
10,744 |
|
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 ended December
31, |
|
For the year ended December
31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities
(GAAP) |
$ |
19,792 |
|
|
$ |
26,011 |
|
|
$ |
42,261 |
|
|
$ |
67,802 |
|
Less: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(3,031 |
) |
|
|
(4,720 |
) |
|
|
(18,161 |
) |
|
|
(15,396 |
) |
Purchases of intangible assets |
|
(228 |
) |
|
|
(65 |
) |
|
|
(1,115 |
) |
|
|
(376 |
) |
Free cash flow (non-GAAP) |
$ |
16,533 |
|
|
$ |
21,226 |
|
|
$ |
22,985 |
|
|
$ |
52,030 |
|
Mistras Group, Inc. and
SubsidiariesUnaudited Reconciliation of
Gross Debt (GAAP) to Net Debt (non-GAAP)(in
thousands)
|
For the year
endedDecember 31, |
|
2021 |
|
2020 |
|
|
|
|
Current portion of long-term debt |
$ |
20,162 |
|
|
$ |
10,678 |
|
Long-term debt, net of current portion |
|
182,403 |
|
|
|
209,538 |
|
Total Gross Debt (GAAP) |
|
202,565 |
|
|
|
220,216 |
|
Less: Cash and cash equivalents |
|
(24,110 |
) |
|
|
(25,760 |
) |
Total Net Debt (non-GAAP) |
$ |
178,455 |
|
|
$ |
194,456 |
|
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
ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
Net income (loss) |
$ |
(89 |
) |
|
$ |
168 |
|
|
$ |
3,893 |
|
$ |
(99,466 |
) |
Less: Net income (loss) attributable to noncontrolling interests,
net of taxes |
|
5 |
|
|
|
(13 |
) |
|
|
33 |
|
|
(5 |
) |
Net income (loss) attributable to Mistras
Group, Inc. |
$ |
(94 |
) |
|
$ |
181 |
|
|
$ |
3,860 |
|
$ |
(99,461 |
) |
Interest expense |
|
2,187 |
|
|
|
3,545 |
|
|
|
10,882 |
|
|
12,955 |
|
Provision (benefit) for income taxes |
|
208 |
|
|
|
939 |
|
|
|
3,395 |
|
|
(14,706 |
) |
Depreciation and amortization |
|
9,216 |
|
|
|
8,946 |
|
|
|
34,921 |
|
|
35,705 |
|
Share-based compensation expense |
|
1,505 |
|
|
|
1,539 |
|
|
|
5,421 |
|
|
5,851 |
|
Legal settlement and litigation charges (benefit), net |
|
1,012 |
|
|
|
140 |
|
|
|
2,042 |
|
|
(220 |
) |
Loss on debt modification |
|
— |
|
|
|
— |
|
|
|
278 |
|
|
645 |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
106,062 |
|
Acquisition-related expense, net |
|
65 |
|
|
|
151 |
|
|
|
1,133 |
|
|
337 |
|
Reorganization and other costs |
|
425 |
|
|
|
1,033 |
|
|
|
673 |
|
|
1,613 |
|
Foreign exchange loss |
|
27 |
|
|
|
1,135 |
|
|
|
371 |
|
|
3,100 |
|
Adjusted EBITDA |
$ |
14,551 |
|
|
$ |
17,609 |
|
|
$ |
62,976 |
|
$ |
51,881 |
|
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, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income (loss) attributable to Mistras Group, Inc.
(GAAP) |
$ |
(94 |
) |
|
$ |
181 |
|
|
$ |
3,860 |
|
|
$ |
(99,461 |
) |
Special items |
|
1,502 |
|
|
|
1,324 |
|
|
|
4,126 |
|
|
|
108,437 |
|
Tax impact on special items |
|
(301 |
) |
|
|
(242 |
) |
|
|
(917 |
) |
|
|
(14,475 |
) |
Special items, net of tax |
$ |
1,201 |
|
|
$ |
1,082 |
|
|
$ |
3,209 |
|
|
$ |
93,962 |
|
Net income (loss) attributable to Mistras Group, Inc.
Excluding Special Items (non-GAAP) |
$ |
1,107 |
|
|
$ |
1,263 |
|
|
$ |
7,069 |
|
|
$ |
(5,499 |
) |
|
|
|
|
|
|
|
|
Diluted EPS (GAAP) |
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
0.13 |
|
|
$ |
(3.41 |
) |
Special items, net of tax |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.10 |
|
|
|
3.22 |
|
Diluted EPS Excluding Special Items
(non-GAAP) |
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.23 |
|
|
$ |
(0.19 |
) |
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