Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Mistras Group, Inc. | a11-27776_18k.htm |
Exhibit 99.1
Mistras Group, Inc. Delivers First Quarter Revenue Growth of 34%; Net Income Increases 103%
EPS Increases 83%; Adjusted EBITDA* Increases 42%
PRINCETON JUNCTION, N.J., Oct.10, 2011 (GLOBE NEWSWIRE) — Mistras Group, Inc. (NYSE:MG - News), a leading “one source” global provider of technology-enabled asset protection solutions, today reported financial results for the first quarter of fiscal 2012. Revenue for the first quarter of fiscal 2012 was $91.4 million, an increase of 34%, over the $68.4 million reported in the first quarter of fiscal 2011. Net income for the first quarter of fiscal 2012 grew by 103% to $3.2 million, or $0.11 per diluted share, versus $1.6 million, or $0.06 per diluted share, in the first quarter of fiscal 2011. Adjusted EBITDA*, a non-GAAP measure detailed later in this release, increased 42% to $12.0 million in the first quarter of fiscal 2012 versus $8.5 million in the first quarter of fiscal 2011.
Consistent with prior quarters, organic growth contributed the bulk of the revenue gain. In the first quarter of fiscal 2012, the organic growth rate was 19%, while acquisition growth was 12% and the balance of growth was due to foreign currency fluctuations.
Additional Financial Highlights for the first quarter of Fiscal 2012:
· Operating income margins grew by 170 basis points and Adjusted EBITDA* margins grew by 70 basis points compared to the same quarter of fiscal 2011.
· The Company generated $12.8 million in net cash from operating activities in the first quarter of fiscal 2012 versus $9.2 million in the same quarter of fiscal 2011, representing an increase of 39%.
· Revenues from the oil and gas market grew by 24% while revenues from all other markets combined grew by more than 40% in the first quarter of fiscal 2012.
Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated that, “We were pleased with the continued momentum of our business in the first quarter of fiscal 2012, which is a traditionally slow quarter for us. Once again, organic revenue growth was a significant driver behind our results, rising to 19% in the first quarter. Our unique approach, which provides ‘One Source’ Asset Protection Solutions to our customers, continues to receive broad acceptance in the many target markets that we serve.”
Business Outlook/Guidance for Fiscal Year 2012
The Company’s outlook is for continued double digit growth in revenue and Adjusted EDITDA*. The Company is affirming its previously issued guidance for fiscal 2012 revenues to be in the range of $375 million to $390 million and Adjusted EBITDA* to be in the range of $59 million
to $64 million. Mistras does not provide specific guidance for individual quarters, but will update its annual guidance at least quarterly.
Earnings Conference Call
In connection with this earnings release, Mistras will hold its quarterly conference call on Tuesday, October 11, 2011 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 1-800-901-5241 and use confirmation code 55375743 when prompted. The International dial-in number is 1-617-786-2963.
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 the ability to extend the useful life of their assets, improve productivity & profitability, comply with government safety and environmental regulations and enhance 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; and its proprietary world class data warehousing & analysis software- 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 Frank Joyce, Chief Financial Officer at 609-716-4103.
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. 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, 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 August 12, 2011, 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
The term “Adjusted EBITDA” is a financial measurement not calculated in accordance with U.S. generally accepted accounting principles. The Company believes that investors and other users of the financial statements benefit from the presentation of Adjusted EBITDA because it provides an additional metric to compare the Company’s operating performance on a consistent basis and measure underlying trends and results of the Company’s business. A reconciliation of this to a financial measurement under GAAP is set forth in a table attached to this press release.
Mistras Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except share data)
|
|
|
August 31, 2011 |
|
May 31, 2011 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current Assets |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
6,491 |
|
$ |
10,879 |
|
|
Accounts receivable, net |
|
72,706 |
|
78,031 |
| ||
|
Inventories, net |
|
10,226 |
|
9,830 |
| ||
|
Deferred income taxes |
|
1,282 |
|
1,278 |
| ||
|
Prepaid expenses and other current assets |
|
6,825 |
|
6,761 |
| ||
|
Total current assets |
|
97,530 |
|
106,779 |
| ||
|
Property, plant and equipment, net |
|
52,750 |
|
49,168 |
| ||
|
Intangible assets, net |
|
28,163 |
|
27,304 |
| ||
|
Goodwill |
|
68,970 |
|
64,146 |
| ||
|
Other assets |
|
1,104 |
|
1,240 |
| ||
|
Total assets |
|
$ |
248,517 |
|
$ |
248,637 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES, PREFERRED STOCK AND EQUITY |
|
|
|
|
| ||
|
Current Liabilities |
|
|
|
|
| ||
|
Current portion of long-term debt |
|
$ |
6,551 |
|
$ |
7,226 |
|
|
Current portion of capital lease obligations |
|
6,526 |
|
5,853 |
| ||
|
Accounts payable |
|
5,580 |
|
6,656 |
| ||
|
Accrued expenses and other current liabilities |
|
29,020 |
|
28,028 |
| ||
|
Income taxes payable |
|
2,365 |
|
2,825 |
| ||
|
Total current liabilities |
|
50,042 |
|
50,588 |
| ||
|
Long-term debt, net of current portion |
|
9,495 |
|
14,625 |
| ||
|
Obligations under capital leases, net of current portion |
|
11,047 |
|
9,623 |
| ||
|
Deferred income taxes |
|
2,920 |
|
2,863 |
| ||
|
Other long-term liabilities |
|
3,719 |
|
3,452 |
| ||
|
Total liabilities |
|
77,223 |
|
81,151 |
| ||
|
|
|
|
|
|
| ||
|
Commitments and contingencies |
|
|
|
|
| ||
|
Preferred stock, 10,000,000 shares authorized |
|
— |
|
— |
| ||
|
Equity |
|
|
|
|
| ||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 27,712,038 and 27,667,122 shares issued and outstanding as of August 31, 2011 and May 31, 2011, respectively |
|
277 |
|
277 |
| ||
|
Additional paid-in capital |
|
181,521 |
|
180,594 |
| ||
|
Accumulated deficit |
|
(10,789 |
) |
(14,017 |
) | ||
|
Accumulated other comprehensive income (loss) |
|
(7 |
) |
303 |
| ||
|
Total Mistras Group, Inc. stockholders’ equity |
|
171,002 |
|
167,157 |
| ||
|
Noncontrolling interest |
|
292 |
|
329 |
| ||
|
Total equity |
|
171,294 |
|
167,486 |
| ||
|
Total liabilities, preferred stock and equity |
|
$ |
248,517 |
|
$ |
248,637 |
|
Mistras Group, Inc.
Unaudited Consolidated Statement of Operations
(in thousands, except per share data)
|
|
|
Three months ended August 31, |
| ||||
|
|
|
2011 |
|
2010 |
| ||
|
Revenues: |
|
|
|
|
| ||
|
Services |
|
$ |
82,902 |
|
$ |
61,252 |
|
|
Products |
|
8,545 |
|
7,158 |
| ||
|
Total revenues |
|
91,447 |
|
68,410 |
| ||
|
Cost of revenues: |
|
|
|
|
| ||
|
Cost of services |
|
56,887 |
|
41,391 |
| ||
|
Cost of products sold |
|
3,640 |
|
3,277 |
| ||
|
Depreciation related to services |
|
3,323 |
|
2,809 |
| ||
|
Depreciation related to products |
|
177 |
|
155 |
| ||
|
Total cost of revenues |
|
64,027 |
|
47,632 |
| ||
|
Gross profit |
|
27,420 |
|
20,778 |
| ||
|
Selling, general and administrative expenses |
|
19,381 |
|
15,479 |
| ||
|
Research and engineering |
|
589 |
|
555 |
| ||
|
Depreciation and amortization |
|
1,479 |
|
1,178 |
| ||
|
Legal reserve |
|
— |
|
250 |
| ||
|
Income from operations |
|
5,971 |
|
3,316 |
| ||
|
Other expenses |
|
|
|
|
| ||
|
Interest expense |
|
661 |
|
690 |
| ||
|
Income before provision for income taxes |
|
5,310 |
|
2,626 |
| ||
|
Provision for income taxes |
|
2,116 |
|
1,054 |
| ||
|
Net income |
|
3,194 |
|
1,572 |
| ||
|
Net loss attributable to noncontrolling interests, net of taxes |
|
34 |
|
20 |
| ||
|
Net income attributable to Mistras Group, Inc. |
|
$ |
3,228 |
|
$ |
1,592 |
|
|
Earnings per common share: |
|
|
|
|
| ||
|
Basic |
|
$ |
0.12 |
|
$ |
0.06 |
|
|
Diluted |
|
$ |
0.11 |
|
$ |
0.06 |
|
|
Weighted average common shares outstanding: |
|
|
|
|
| ||
|
Basic |
|
27,677 |
|
26,664 |
| ||
|
Diluted |
|
28,225 |
|
26,778 |
| ||
Mistras Group, Inc.
Unaudited Operating Data by Segment
(in thousands)
|
|
|
Three months ended August 31, |
| ||||
|
|
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
|
Revenues |
|
|
|
|
| ||
|
Services |
|
$ |
75,689 |
|
$ |
55,282 |
|
|
Products and Systems |
|
7,513 |
|
5,310 |
| ||
|
International |
|
9,773 |
|
9,040 |
| ||
|
Corporate and eliminations |
|
(1,528 |
) |
(1,222 |
) | ||
|
|
|
$ |
91,447 |
|
$ |
68,410 |
|
|
|
|
Three months ended August 31, |
| ||||
|
|
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
|
Gross profit |
|
|
|
|
| ||
|
Services |
|
$ |
20,308 |
|
$ |
15,001 |
|
|
Products and Systems |
|
3,751 |
|
2,569 |
| ||
|
International |
|
3,431 |
|
3,271 |
| ||
|
Corporate and eliminations |
|
(70 |
) |
(63 |
) | ||
|
|
|
$ |
27,420 |
|
$ |
20,778 |
|
Mistras Group, Inc.
Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. to EBITDA and Adjusted EBITDA
(in thousands)
|
|
|
Three months ended August 31, |
| ||||
|
|
|
2011 |
|
2010 |
| ||
|
EBITDA and Adjusted EBITDA data |
|
|
|
|
| ||
|
Net income attributable to Mistras Group, Inc. |
|
$ |
3,228 |
|
$ |
1,592 |
|
|
Interest expense |
|
661 |
|
690 |
| ||
|
Provision for income taxes |
|
2,116 |
|
1,054 |
| ||
|
Depreciation and amortization |
|
4,979 |
|
4,142 |
| ||
|
EBITDA |
|
$ |
10,984 |
|
$ |
7,478 |
|
|
Legal reserve |
|
— |
|
250 |
| ||
|
Stock compensation expense |
|
1,002 |
|
729 |
| ||
|
Adjusted EBITDA |
|
$ |
11,986 |
|
$ |
8,457 |
|