abrooklyn
6 months ago
Matrix Service Company Announces Fiscal 2023 Fourth Quarter and Full Year Results
Source: GlobeNewswire Inc.
Matrix Service Company (Nasdaq: MTRX) today reported its financial results for the fourth quarter and year ended June 30, 2023.
Key highlights:
Project awards of $463.6 million and a book-to-bill ratio of 2.3 for the quarter; full fiscal year awards of $1.3 billion and a book-to-bill ratio of 1.7; highest quarterly project awards in five years
Backlog increased by 31% to $1.1 billion compared to the third quarter of fiscal 2023, and by 85% since the start of the fiscal year; highest backlog level since June 30, 2019
Fourth quarter revenue of $205.9 million, an increase of 10% compared to the third quarter of fiscal 2023; full fiscal year revenue of $795.0 million
Loss per fully diluted share of $0.01 in the fourth quarter; adjusted loss per fully diluted share of $0.11(1) excluding gain on the sale of non-core assets and other non-cash items
Adjusted EBITDA of $2.3 million(1) for the fourth quarter of fiscal 2023 compared to $(7.7) million in the third quarter of fiscal 2023
“I am extremely pleased with the progress Matrix made over the last year and excited about the prospects for the company. We ended our fiscal year on a very strong note with backlog of $1.1 billion. In the fourth quarter alone, awards of nearly $464 million resulted in a book-to-bill ratio of 2.3. The company is positioned with high quality backlog which will generate significantly improved results in fiscal 2024 and the next several years,” said John R. Hewitt, president and CEO. “As we commence work on recently awarded large capital projects, we have strong visibility into our revenue and are focused on maximizing our profitability after undergoing an internal transformation that has optimized our cost structure. Our strategic approach to end markets supported by strong tailwinds will lead to continued backlog growth and strong performance for the foreseeable future.”
Earnings Summary
Revenue of $205.9 million during the fourth quarter of fiscal 2023 was higher than revenue of $186.9 million during the third quarter of fiscal 2023 as the contribution to revenue of newly awarded projects has begun to make an impact.
Gross margin was 7.1% in the fourth quarter of fiscal 2023 compared to a gross margin of 2.4% in the third quarter of fiscal 2023. Our margins improved sequentially due to strong project execution and improved construction overhead cost recovery.
In the Storage and Terminals Solutions segment, revenue increased to $64.1 million in the fourth quarter as compared to $52.2 million in the third quarter as a result of revenue contribution from recently awarded capital projects. Gross margin of 3.2% was negatively impacted by low revenue volume, which led to the under recovery of construction overhead costs.
In the Utility and Power Infrastructure segment, revenue increased to $39.1 million in the fourth quarter compared to $35.0 million in the third quarter. Fourth quarter gross margin was 9.6%, primarily driven by strong execution on power delivery projects and a peak shaver project added to backlog during the second quarter of fiscal 2023. This segment fully recovered construction overhead costs, which contributed to margin performance.
In the Process and Industrial Facilities segment, revenue increased to $102.7 million in the fourth quarter compared to $99.7 million in the third quarter. Fourth quarter gross margin of 8.2% was negatively impacted by continued work to close out a midstream gas processing project with a reduced margin profile. This project reached mechanical completion in line with our previous forecast, and we will be demobilized in the first quarter of fiscal 2024. Other work in the segment, including refinery turnaround and maintenance, aerospace, and a renewable diesel project, which amounted to approximately 80% of segment revenue, produced a gross margin of approximately 10% on strong project execution. This segment fully recovered construction overhead costs, which contributed to margin performance.
Consolidated SG&A expenses were $17.0 million in the fourth quarter, consistent with the first three quarters of the year. The company continues to focus on cost control and expects to leverage its optimized cost structure as revenue improves.
Our effective tax rate for the fourth quarter was 9.9% compared to 2.8% in third quarter. The effective tax rates for both periods were impacted by the valuation allowance placed on all our deferred tax assets due to the existence of a cumulative loss over a three-year period.
For the fourth quarter, we had a net loss of $0.3 million, or $0.01 per share, compared to a net loss of $12.7 million, or $0.47 per share, in the third quarter. For the fourth quarter, we had an adjusted net loss of $3.1 million, or $0.11 per share, which excluded the gain on the sale of non-core assets and other non-cash items. This compares to an adjusted net loss of $8.9 million, or $0.33 per share, in the third quarter(1).
Backlog
Our backlog of $1.1 billion as of June 30, 2023 represents an 85% year-over-year increase and the largest backlog since June 30, 2019. Project awards totaled $463.6 million and $1.3 billion during the three and twelve months ended June 30, 2023, respectively, leading to book-to-bill ratios of 2.3 and 1.7 for the three and twelve-month periods, respectively. Bidding activity remains strong, and while the timing of project awards can fluctuate, we expect the trend of improving backlog to continue.
The table below summarizes our awards, book-to-bill ratios and backlog by segment for our fourth fiscal quarter and full year (in thousands, except for book-to-bill ratios):
Three Months Ended
June 30, 2023 Twelve Months Ended
June 30, 2023 Backlog as of June 30, 2023
Segment: Awards Book-to-Bill(1) Awards Book-to-Bill(1)
Storage and Terminal Solutions $ 41,359 0.6 $ 354,510 1.4 $ 270,659
Utility and Power Infrastructure 360,714 9.2 526,963 3.1 459,518
Process and Industrial Facilities 61,522 0.6 444,148 1.2 359,921
Total $ 463,595 2.3 $ 1,325,621 1.7 $ 1,090,098
____________________
(1) Calculated by dividing project awards by revenue recognized.
Financial Position
At June 30, 2023, we had total liquidity of $92.5 million. Liquidity is comprised of $54.8 million of unrestricted cash and cash equivalents and $37.7 million of borrowing availability under the ABL Facility. At June 30, 2023, we also had $25.0 million of restricted cash to support the ABL Facility and have reduced borrowings under the facility from $15.0 million to $10.0 million.
(1)Non-GAAP Financial Measure
Adjusted loss per share is a non-GAAP financial measure that excludes restructuring costs, goodwill impairment, gain on sale of assets, the accelerated amortization of deferred debt amendment fees associated with the prior credit agreement, and the financial impact of a valuation allowance placed on our deferred tax assets. See the Non-GAAP Financial Measures section included at the end of this release for a reconciliation to earnings (loss) per share.
Conference Call Details
In conjunction with the earnings release, Matrix Service Company will host a conference call / webcast with John R. Hewitt, President and CEO, and Kevin S. Cavanah, Vice President and CFO. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m. (Central) on Tuesday, September 12, 2023, and will be simultaneously broadcast live over the Internet which can be accessed at our website at matrixservicecompany.com under Investor Relations, Events and Presentations or using this webcast link. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call.
About Matrix Service Company
Matrix Service Company (Nasdaq: MTRX), through its subsidiaries, is a leading North American industrial engineering, construction, and maintenance contractor headquartered in Tulsa, Oklahoma with offices located throughout the United States and Canada, as well as Sydney, Australia and Seoul, South Korea.
The Company reports its financial results in three key operating segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.
With a focus on sustainability, building strong Environment, Social and Governance (ESG) practices, and living our core values, Matrix ranks among the Top Contractors by Engineering-News Record, was recognized for its Board diversification by 2020 Women on Boards, is an active signatory to CEO Action for Diversity and Inclusion, and is consistently recognized as a Great Place to Work®. To learn more about Matrix Service Company, visit matrixservicecompany.com
This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance and management’s best judgment as to what may occur in the future. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including the successful implementation of the Company's business improvement plan and the factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition. We undertake no obligation to update information contained in this release, except as required by law.
For more information, please contact:
Kevin S. Cavanah
Vice President and CFO
T: 918-838-8822
Email:kcavanah@matrixservicecompany.com
Kellie Smythe
Senior Director, Investor Relations
T: 918-359-8267
Email: ksmythe@matrixservicecompany.com
abrooklyn
7 months ago
Matrix Service Company Announces Fiscal 2023 Fourth Quarter and Full Year Results
Source: GlobeNewswire Inc.
Matrix Service Company (Nasdaq: MTRX) today reported its financial results for the fourth quarter and year ended June 30, 2023.
Key highlights:
Project awards of $463.6 million and a book-to-bill ratio of 2.3 for the quarter; full fiscal year awards of $1.3 billion and a book-to-bill ratio of 1.7; highest quarterly project awards in five years
Backlog increased by 31% to $1.1 billion compared to the third quarter of fiscal 2023, and by 85% since the start of the fiscal year; highest backlog level since June 30, 2019
Fourth quarter revenue of $205.9 million, an increase of 10% compared to the third quarter of fiscal 2023; full fiscal year revenue of $795.0 million
Loss per fully diluted share of $0.01 in the fourth quarter; adjusted loss per fully diluted share of $0.11(1) excluding gain on the sale of non-core assets and other non-cash items
Adjusted EBITDA of $2.3 million(1) for the fourth quarter of fiscal 2023 compared to $(7.7) million in the third quarter of fiscal 2023
“I am extremely pleased with the progress Matrix made over the last year and excited about the prospects for the company. We ended our fiscal year on a very strong note with backlog of $1.1 billion. In the fourth quarter alone, awards of nearly $464 million resulted in a book-to-bill ratio of 2.3. The company is positioned with high quality backlog which will generate significantly improved results in fiscal 2024 and the next several years,” said John R. Hewitt, president and CEO. “As we commence work on recently awarded large capital projects, we have strong visibility into our revenue and are focused on maximizing our profitability after undergoing an internal transformation that has optimized our cost structure. Our strategic approach to end markets supported by strong tailwinds will lead to continued backlog growth and strong performance for the foreseeable future.”
Earnings Summary
Revenue of $205.9 million during the fourth quarter of fiscal 2023 was higher than revenue of $186.9 million during the third quarter of fiscal 2023 as the contribution to revenue of newly awarded projects has begun to make an impact.
Gross margin was 7.1% in the fourth quarter of fiscal 2023 compared to a gross margin of 2.4% in the third quarter of fiscal 2023. Our margins improved sequentially due to strong project execution and improved construction overhead cost recovery.
In the Storage and Terminals Solutions segment, revenue increased to $64.1 million in the fourth quarter as compared to $52.2 million in the third quarter as a result of revenue contribution from recently awarded capital projects. Gross margin of 3.2% was negatively impacted by low revenue volume, which led to the under recovery of construction overhead costs.
In the Utility and Power Infrastructure segment, revenue increased to $39.1 million in the fourth quarter compared to $35.0 million in the third quarter. Fourth quarter gross margin was 9.6%, primarily driven by strong execution on power delivery projects and a peak shaver project added to backlog during the second quarter of fiscal 2023. This segment fully recovered construction overhead costs, which contributed to margin performance.
In the Process and Industrial Facilities segment, revenue increased to $102.7 million in the fourth quarter compared to $99.7 million in the third quarter. Fourth quarter gross margin of 8.2% was negatively impacted by continued work to close out a midstream gas processing project with a reduced margin profile. This project reached mechanical completion in line with our previous forecast, and we will be demobilized in the first quarter of fiscal 2024. Other work in the segment, including refinery turnaround and maintenance, aerospace, and a renewable diesel project, which amounted to approximately 80% of segment revenue, produced a gross margin of approximately 10% on strong project execution. This segment fully recovered construction overhead costs, which contributed to margin performance.
Consolidated SG&A expenses were $17.0 million in the fourth quarter, consistent with the first three quarters of the year. The company continues to focus on cost control and expects to leverage its optimized cost structure as revenue improves.
Our effective tax rate for the fourth quarter was 9.9% compared to 2.8% in third quarter. The effective tax rates for both periods were impacted by the valuation allowance placed on all our deferred tax assets due to the existence of a cumulative loss over a three-year period.
For the fourth quarter, we had a net loss of $0.3 million, or $0.01 per share, compared to a net loss of $12.7 million, or $0.47 per share, in the third quarter. For the fourth quarter, we had an adjusted net loss of $3.1 million, or $0.11 per share, which excluded the gain on the sale of non-core assets and other non-cash items. This compares to an adjusted net loss of $8.9 million, or $0.33 per share, in the third quarter(1).
Backlog
Our backlog of $1.1 billion as of June 30, 2023 represents an 85% year-over-year increase and the largest backlog since June 30, 2019. Project awards totaled $463.6 million and $1.3 billion during the three and twelve months ended June 30, 2023, respectively, leading to book-to-bill ratios of 2.3 and 1.7 for the three and twelve-month periods, respectively. Bidding activity remains strong, and while the timing of project awards can fluctuate, we expect the trend of improving backlog to continue.
The table below summarizes our awards, book-to-bill ratios and backlog by segment for our fourth fiscal quarter and full year (in thousands, except for book-to-bill ratios):
Three Months Ended
June 30, 2023 Twelve Months Ended
June 30, 2023 Backlog as of June 30, 2023
Segment: Awards Book-to-Bill(1) Awards Book-to-Bill(1)
Storage and Terminal Solutions $ 41,359 0.6 $ 354,510 1.4 $ 270,659
Utility and Power Infrastructure 360,714 9.2 526,963 3.1 459,518
Process and Industrial Facilities 61,522 0.6 444,148 1.2 359,921
Total $ 463,595 2.3 $ 1,325,621 1.7 $ 1,090,098
____________________
(1) Calculated by dividing project awards by revenue recognized.
Financial Position
At June 30, 2023, we had total liquidity of $92.5 million. Liquidity is comprised of $54.8 million of unrestricted cash and cash equivalents and $37.7 million of borrowing availability under the ABL Facility. At June 30, 2023, we also had $25.0 million of restricted cash to support the ABL Facility and have reduced borrowings under the facility from $15.0 million to $10.0 million.
(1)Non-GAAP Financial Measure
Adjusted loss per share is a non-GAAP financial measure that excludes restructuring costs, goodwill impairment, gain on sale of assets, the accelerated amortization of deferred debt amendment fees associated with the prior credit agreement, and the financial impact of a valuation allowance placed on our deferred tax assets. See the Non-GAAP Financial Measures section included at the end of this release for a reconciliation to earnings (loss) per share.
Conference Call Details
In conjunction with the earnings release, Matrix Service Company will host a conference call / webcast with John R. Hewitt, President and CEO, and Kevin S. Cavanah, Vice President and CFO. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m. (Central) on Tuesday, September 12, 2023, and will be simultaneously broadcast live over the Internet which can be accessed at our website at matrixservicecompany.com under Investor Relations, Events and Presentations or using this webcast link. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call.
About Matrix Service Company
Matrix Service Company (Nasdaq: MTRX), through its subsidiaries, is a leading North American industrial engineering, construction, and maintenance contractor headquartered in Tulsa, Oklahoma with offices located throughout the United States and Canada, as well as Sydney, Australia and Seoul, South Korea.
The Company reports its financial results in three key operating segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.
With a focus on sustainability, building strong Environment, Social and Governance (ESG) practices, and living our core values, Matrix ranks among the Top Contractors by Engineering-News Record, was recognized for its Board diversification by 2020 Women on Boards, is an active signatory to CEO Action for Diversity and Inclusion, and is consistently recognized as a Great Place to Work®. To learn more about Matrix Service Company, visit matrixservicecompany.com
This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance and management’s best judgment as to what may occur in the future. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including the successful implementation of the Company's business improvement plan and the factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition. We undertake no obligation to update information contained in this release, except as required by law.
For more information, please contact:
Kevin S. Cavanah
Vice President and CFO
T: 918-838-8822
Email:kcavanah@matrixservicecompany.com
Kellie Smythe
Senior Director, Investor Relations
T: 918-359-8267
Email: ksmythe@matrixservicecompany.com
swanlinbar
13 years ago
1947: The story of Cavan's All Ireland win in New York
09:01, 04 May 2011
Shane Stapleton
The passing of Owen Roe McGovern, the last surviving member of Cavan’s 1947 team, brings to mind one of the most famous climaxes ever to a GAA season.
It was the one and only year in the history of the sport that an All Ireland final was held outside Ireland. New York in 1947 was the scene. It is hard to imagine that happening again in the foreseeable future, what with that novelty being reserved merely for the inter-provincial championships in recent times.
When the GAA took the All Ireland football final to the Polo Grounds in 1947, it did so as a goodwill gesture to the Irish diaspora of America. It has also been suggested that it was a means of commemorating the great famine of 100 years previously. In any case, Canon Hamilton of Clare had lobbied the GAA Congress for three years before he got his wish to take the game across the Atlantic.
Before that, the championship ran its business as usual. The provincial championships were played out with Meath, Kerry, Roscommon and Cavan picking up local honours. The Kingdom ousted the Royals in their final-four meeting and, in the other semi-final, the Breffni County accounted for the Rossies. All of which meant league champions Cavan and Kerry were the two counties given the distinguished honour of flying the Irish flag in the US with the hope of bolstering the diminishing profile of Gaelic games there.
Most of the Cavan team took a 29-hour flight – including a stopover in the Azores – from Shannon out to the Big Apple whereas the majority of the Kerry party took a six-day journey by sea from Cobh on the SS Mauretania. McGovern also went on rather than above the Atlantic Ocean. “I travelled over by boat and it was a desperate hot day when we arrived,” he said in The Big Apple.
Radió Éireann sent over Micheál O’Hehir to cover the match, and it happened to be the company’s first live radio broadcast from outside Ireland. Typical Irish, there was some panic leading up to the game as a line on which to broadcast the game had not been booked, though that issue was eventually ironed out with one ordered from 3:30 until 5pm New York-time. A tight window but one big enough to squeeze the game through.
As those who play in modern GAA games in New York will attest, the scorching conditions turned out to be far from suitable for a Gaelic football match, least of all an All Ireland final. The pitch belonged to a baseball team, the New York Giants, and as well as the pitch being extremely hard and bald in patches, there was even a noticeable mound on the pitch. Given that it was an extremely hot day and, by means of combating the conditions, many of the Kerry players wore jockey caps. Adjacent to the pitch, trouble was also afoot for O’Hehir and Co as, with the playing of both the Irish and American anthems and the ceremonial throw in by Mayo native Bill O'Dwyer, who was Mayor, the game did not start until 3:40. The broadcasting window had been narrowed.
When the game did commence, it was the Kingdom who threatened to turn the game into a rout. They had beaten their rivals at the same level 10 years previously and a quick two-goal headstart suggested that would be the way of it at the Polo Grounds, even more so considering they had two more efforts disallowed.
But Cavan regrouped as Joe Stafford and Mick Higgins pulled goals back. The latter, Higgins, had actually been born in New York and so would go on to capture the first of his All Ireland titles in the same city. The hero of the hour was Peter Donohoe who scored eight points for Cavan and was dubbed by the local media as ‘The Babe Ruth of Gaelic football’.
And yet still there was a problem for O’Hehir and all the radio listeners in Ireland 3,000 miles away: it was now 4:55 in New York, meaning there was just five more minutes of broadcasting time booked, yet there was still 10 minutes of the game to be played. O’Hehir pleaded blindly and hopefully down the airwaves for the coverage to be allowed to continue and luckily someone was listening, as he was able to talk on until the final score: Cavan 2-11 Kerry 2-07.
“The celebrations were great afterwards," McGovern stated. "We were wined and dined and never let buy a drink anywhere. There were a lot of people who wanted to celebrate with us and they all wanted us to come into their pub afterwards.
“There were big celebrations when we came home as well. We came back on The Queen Mary and when we arrived in Dublin the welcome we got was terrific. We got a bus down to Cavan and there was nothing to beat the celebrations.”
McGovern finished his career with two All Irelands, two national leagues and four Ulster titles for Cavan before moving to New Jersey, and sadly passing away. The last link has been broken but a great story remains.
You can follow Shane Stapleton on Twitter @shanesaint
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