MISTRAS Group
RFQ
Call Me

MISTRAS Group
Investor Relations

MISTRAS Announces Fourth Quarter and Full Year 2023 Results

PRESS RELEASES

View printer-friendly version
<< Back

MISTRAS Announces Fourth Quarter and Full Year 2023 Results

Mar 6, 2024

Q4 2023 Revenue of $182.1 million, up 8.2%

Q4 2023 Net Loss of $2.5 million reflecting $6.3 million of reorganization and other costs and $1.2 million of foreign currency exchange losses

Q4 2023 Adjusted EBITDA (non-GAAP) of $19.2 million compared to $15.7 million in the prior year, up 22.0%;
highest Q4 result historically

Full Year 2023 Net Cash Provided by Operating Activities of $26.7 million consistent with the prior year,
whereas Free Cash Flow (non-GAAP) of $3.1 million was lower than the prior year,
reflecting increased strategic spend in expanding growth areas

PRINCETON JUNCTION, N.J., March 06, 2024 (GLOBE NEWSWIRE) -- 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, 2023.

“I am pleased to report strong top and bottom-line growth in the fourth quarter of 2023. Although a small sample, our fourth quarter performance is evidence of the effectiveness of Project Phoenix initiatives to improve profitability and Adjusted EBITDA through meaningful margin improvement and steps to achieve sustained cost savings. More importantly, this provides momentum heading into 2024, where we expect to realize the majority of the financial benefits from the implementation in 2023 of the initiatives that Project Phoenix has driven throughout the organization. Consequently, I am reiterating our expectation that fiscal 2024 Adjusted EBITDA will be one of our all-time high performance years,” said Manny N. Stamatakis, Interim President and Chief Executive Officer.

Edward Prajzner, Senior Executive Vice President and Chief Financial Officer, commented, “Fourth quarter results clearly demonstrate that we can drive significant bottom line growth by leveraging improved sales efficiency and enhanced operational productivity. Despite headwinds faced earlier in the year, we saw positive momentum in the second half of 2023 and our fourth quarter results are a tangible example of the momentum we have built heading into 2024. We are pleased by the early success achieved on our Project Phoenix objectives, but also recognize this is only the beginning and our job is not yet complete. The entire organization is re-energized and intently focused on finding new opportunities to efficiently leverage our core competencies.”

Highlights for the Fourth Quarter 2023*

  • Revenue of $182.1 million, an increase of 8.2%
  • Gross profit of $53.6 million, an increase of 5.3%, with gross profit margin of 29.5%, a decrease of 80 basis points due to an unfavorable sales mix and higher employee benefit credits in the prior year period
  • Selling, general and administrative expenses of $42.9 million, up 1.7%, due to higher foreign currency exchange losses and other discrete items, offset by savings associated with Project Phoenix actions and other cost reduction measures
  • Net loss of $2.5 million, or ($0.08) per share, reflecting reorganization and other costs of $6.3 million; Net income excluding special items (non-GAAP) of $2.9 million, or $0.10 per share
  • Adjusted EBITDA of $19.2 million, an increase of 22.0%, as a result of operating leverage and cost controls

*    All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted.

For the fourth quarter of 2023, consolidated revenue was $182.1 million, an increase of 8.2% from the fourth quarter of 2022. Revenue growth in the fourth quarter was led by a 13.4% increase in the Oil & Gas industry, a 15.3% increase in the Aerospace and Defense industry and 24.3% growth in the Industrials industry, which represent our three largest industries. Growth in the Oil & Gas industry was led by strong turnaround activity, which is expected to continue into the first quarter of fiscal 2024. Revenue in the Company’s other industries, primarily Power Generation, was down from the prior year period primarily due to the completion of certain projects.

Fourth quarter 2023 gross profit increased 5.3%, although gross profit margin was down compared to the year ago period. Gross profit improved from the increase in revenues, while gross profit margin decreased due to an unfavorable sales mix and higher employee benefit credits in the prior year period.

Selling, general and administrative expenses (“SG&A”) in the fourth quarter of 2023 were $42.9 million, up 1.7% from the year ago period, due to higher foreign currency exchange losses and other discrete items, offset by savings associated with Project Phoenix actions and other cost reduction measures. Beginning in the first quarter of 2024, the Company expects SG&A to be significantly below comparable year levels due to Project Phoenix actions completed in 2023. The Company anticipates that SG&A will reduce to approximately 21% of full year 2024 revenue, from 23.6% in full year 2023.

The Company reported a quarterly net loss of $2.5 million, or $0.08 loss per share, which included $6.3 million of reorganization and related costs and $1.2 million of foreign currency exchange losses.

Net income excluding special items (non-GAAP) was $2.9 million, or $0.10 per share, for the fourth quarter of 2023, compared to $0.09 per share in the prior year period.

Adjusted EBITDA was $19.2 million in the fourth quarter of 2023 compared to $15.7 million in the prior year, an increase of 22.0%.

Highlights for Full Year 2023*

  • Revenue of $705.5 million, an increase of 2.6% and exceeding the high end of the Company’s revised Guidance
  • Gross profit of $203.8 million, with gross profit margin of 28.9%, an increase of 10 basis points due to improved revenue mix for the year, partially offset by higher employee benefit credits in the prior year period
  • SG&A of $166.7 million, up marginally, less than 1%, due to higher foreign currency exchange losses and other discrete items, which offset the savings associated with our Project Phoenix initiatives
  • Net loss of $17.5 million, or ($0.58) per share, primarily due to reorganization and other costs of $12.3 million and a $13.8 million non-cash goodwill impairment charge
  • Adjusted EBITDA of $65.8 million, an increase of 13.2% and in line with the Company’s revised Guidance

*    All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted.

For the full year, revenue increased 2.6%. Revenue growth was primarily driven by a 7.3% increase in the Oil and Gas industry, with growth in all sub-categories of Upstream, Midstream, and Downstream in addition to a 10.3% increase in the Industrials industry. These increases were partially offset by a decrease in revenue in the Power Generation industry due the completion of certain contracts and declines in Other Process Industries and Aerospace & Defense. Aerospace and Defense revenue decreased compared to the prior full year period but rebounded with robust growth during the fourth quarter of 2023.

For the full year 2023, gross profit increased $5.6 million, or 2.8%, with gross profit margin of 28.9%, a slight increase from 28.8% in the prior year. On a full year basis in 2023, SG&A was essentially flat. Net loss was $17.5 million for the full year 2023, compared to net income of $6.5 million in 2022. Adjusted EBITDA was $65.8 million, up 13.2% from $58.2 million in 2022.

Cash Flow and Balance Sheet
The Company generated $26.7 million of net cash from operating activities in 2023, compared to $26.4 million in 2022. Free cash flow was $3.1 million for the year ended December 31, 2023, compared to $13.0 million in the prior year. The Company’s decreased cash flow in 2023 was primarily attributable to a significant increase in capital expenditures during the current year of $10.2 million as compared to 2022. The Company is intently focused on organic growth investments via strategic capital expenditures and improved commercial functions, in order to foster revenue growth in expanding areas including Aerospace shop laboratories and Data Analytical Solutions.

The Company’s gross debt was $190.4 million as of December 31, 2023, compared to $191.3 million as of December 31, 2022 and $193.9 million as of September 30, 2023.

Reorganization and Other
For the fourth quarter of 2023, the Company recorded $6.3 million of reorganization costs related to on-going efficiency and productivity initiatives, primarily related to overhead cost savings achieved via Project Phoenix. For the fourth quarter of 2023, these charges included costs associated with the separation of the Company’s former President and CEO, professional fees and certain restructuring charges associated with changes made in the Company’s organizational structure. For the year ended December 31, 2023, the Company recorded $12.3 million of total reorganization costs.

Refer to the Company’s press release associated with Project Phoenix released on November 2, 2023 for additional details associated with this important initiative.

Preliminary 2024 Outlook
The Company reiterates the preliminary guidance released in conjunction with the release of its financial results for the third quarter of 2023. For 2024, the Company anticipates full year revenue between $725-$750 million and Adjusted EBITDA between $84-$89 million. The Company additionally expects to generate Free Cash Flow of between $34-$38 million. This outlook for 2024 includes approximately $20 million in incremental benefit from savings associated with Project Phoenix initiatives in 2024.

Mr. Stamatakis concluded, “I am extremely encouraged by the strong early returns from the Project Phoenix related actions. The increased discipline and accountability implemented throughout the organization in connection with Project Phoenix have resulted in an increased focus on achieving the goals we have set for revenue growth, efficiency improvements and increased profitability. We are now firmly set on a course to achieve continuous improvement, further integrate Data Analytical Solutions, and uncover other opportunities where our proprietary technologies and extensive knowledge and know-how can solve problems for our customers and create value for our shareholders.”

Conference Call
In connection with this release, MISTRAS will hold a conference call on March 7, 2024, at 9:00 a.m. (Eastern).
To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website at www.mistrasgroup.com
Note there is a new process to participate in the live question and answer session. Individuals wishing to participate may preregister at: https://register.vevent.com/register/BIe6bb24671aee4266a3bd30d29905a100
Upon registering, a dial-in number and unique PIN will be provided to join the conference call. Following the conference call, an archived webcast of the event will be available for one year by visiting the Investor Relations section of MISTRAS Group’s 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, strong commitment to Environmental, Social, and Governance (ESG) initiatives, and a decades-long legacy of industry leadership, MISTRAS leads clients in the oil and gas, aerospace and defense, renewable and nonrenewable power, civil infrastructure, and manufacturing industries towards achieving operational and environmental 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; building real-time monitoring equipment to enable safe travel across bridges; and helping to propel sustainability, 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 field and in-line 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 and the environment, visit https://www.mistrasgroup.com/.

MEDIA CONTACT:
Nestor S. Makarigakis
Group Vice-President of Marketing and Communications
+1 (609) 716-4000 | marcom@mistrasgroup.com

Forward-Looking and Cautionary Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our 2024 outlook, guidance, costs savings and other benefits we expect to realize from Project Phoenix and actions that we expect or seek to take in furtherance of our strategies and activities to enhance our financial results and future growth. Such forward-looking statements relate to MISTRAS' financial results and estimates, products and services, business model, Project Phoenix, 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 2022 Annual Report on Form 10-K dated March 15, 2023, 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 Financial 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 are not prepared in accordance with GAAP and 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 trends and projected information. The term "Adjusted EBITDA" used in this release is a financial measurement not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, 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, reorganization and related charges and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the term “net debt”, a non-GAAP financial measurement the Company defines 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 financial 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 measurements 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) from Operations before Special Items (non-GAAP)”, “Net Loss (GAAP) and Diluted EPS (GAAP) to Net Loss Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measurement. Each of these non-GAAP financial measurements has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measurements derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measurements used in this press release may not be calculated in the same manner by all companies, these measurements may not be comparable to other similarly-titled measurements used by other companies.


 
Mistras Group, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(in thousands, except share and per share data)
 
  December 31,
    2023       2022  
ASSETS      
Current Assets      
Cash and cash equivalents $ 17,646     $ 20,488  
Accounts receivable, net   132,847       123,657  
Inventories   15,283       13,556  
Prepaid expenses and other current assets   14,580       10,181  
Total current assets   180,356       167,882  
Property, plant and equipment, net   80,972       77,561  
Intangible assets, net   43,994       49,015  
Goodwill   187,354       199,635  
Deferred income taxes   2,316       779  
Other assets   39,784       40,032  
Total Assets $ 534,776     $ 534,904  
       
LIABILITIES AND EQUITY      
Current Liabilities      
Accounts payable $ 17,032     $ 12,532  
Accrued expenses and other current liabilities   84,331       77,844  
Current portion of long-term debt   8,900       7,425  
Current portion of finance lease obligations   5,159       4,201  
Income taxes payable   1,101       1,726  
Total current liabilities   116,523       103,728  
Long-term debt, net of current portion   181,499       183,826  
Obligations under finance leases, net of current portion   11,261       10,045  
Deferred income taxes   2,552       6,283  
Other long-term liabilities   32,438       32,273  
Total Liabilities $ 344,273     $ 336,155  
       
Commitments and contingencies      
       
Equity      
Preferred stock, 10,000,000 shares authorized          
Common stock, $0.01 par value, 200,000,000 shares authorized, 30,597,633 and 29,895,487 shares issued   305       298  
Additional paid-in capital   247,165       243,031  
Accumulated Deficit   (28,942 )     (11,489 )
Accumulated other comprehensive loss   (28,336 )     (33,390 )
Total Mistras Group, Inc. stockholders’ equity   190,192       198,450  
Non-controlling interests   311       299  
Total Equity   190,503       198,749  
Total Liabilities and Equity $ 534,776     $ 534,904  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income (Loss)
(in thousands, except per share data)
 
  For the quarter ended
December 31,
  For the year ended
December 31,
    2023       2022       2023       2022  
               
Revenue $ 182,073     $ 168,218     $ 705,473     $ 687,373  
Cost of revenue   122,365       111,720       477,671       466,567  
Depreciation   6,081       5,559       23,995       22,633  
Gross profit   53,627       50,939       203,807       198,173  
Selling, general and administrative expenses   42,914       42,168       166,749       166,400  
Bad debt provision for troubled customers, net of recoveries         (247 )           42  
Reorganization and other costs   6,252       130       12,269       195  
Legal settlement and litigation charges (benefit), net   908             1,058       (994 )
Goodwill Impairment charges               13,799        
Research and engineering   295       471       1,723       1,994  
Depreciation and amortization   2,548       2,603       10,104       10,661  
Acquisition-related expense, net   4       12       9       76  
Income (loss) from operations   706       5,802       (1,904 )     19,799  
Interest expense   4,668       3,713       16,761       10,505  
Income (loss) before provision (benefit) for income taxes   (3,962 )     2,089       (18,665 )     9,294  
Provision (benefit) for income taxes   (1,449 )     (774 )     (1,220 )     2,720  
Net income (loss)   (2,513 )     2,863       (17,445 )     6,574  
Less: net income attributable to noncontrolling interests, net of taxes   1       21       8       75  
Net income (loss) attributable to Mistras Group, Inc. $ (2,514 )   $ 2,842     $ (17,453 )   $ 6,499  
Earnings per common share              
Basic $ (0.08 )   $ 0.09     $ (0.58 )   $ 0.22  
Diluted $ (0.08 )   $ 0.09     $ (0.58 )   $ 0.21  
Weighted average common shares outstanding:              
Basic   30,473       29,983       30,330       29,901  
Diluted   30,473       30,258       30,330       30,229  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Operating Data by Segment
(in thousands)
 
  For the quarter ended
December 31,
  For the year ended
December 31,
    2023       2022       2023       2022  
Revenue              
North America $ 148,035     $ 138,085     $ 579,330     $ 573,336  
International   33,750       28,984       124,414       112,425  
Products and Systems   3,089       4,061       12,986       12,727  
Corporate and eliminations   (2,801 )     (2,912 )     (11,257 )     (11,115 )
  $ 182,073     $ 168,218     $ 705,473     $ 687,373  
               
               
  For the quarter ended
December 31,
  For the year ended
December 31,
    2023       2022       2023       2022  
Gross profit              
North America $ 42,872     $ 40,701     $ 163,960     $ 159,049  
International   9,363       8,267       33,610       33,591  
Products and Systems   1,684       1,976       6,457       5,490  
Corporate and eliminations   (294 )     (5 )     (220 )     43  
  $ 53,625     $ 50,939     $ 203,807     $ 198,173  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Revenues by Category
(in thousands)
 
Revenue by industry was as follows:
 
Three Months Ended December 31, 2023 North America   International   Products   Corp/Elim   Total
Oil & Gas $ 97,558     $ 10,324     $ 72     $     $ 107,954  
Aerospace & Defense   14,484       4,817       11             19,312  
Industrials   11,825       8,018       437             20,280  
Power Generation & Transmission   5,764       1,769       578             8,111  
Other Process Industries   8,129       3,889       39             12,057  
Infrastructure, Research & Engineering   3,924       2,773       409             7,106  
Petrochemical   3,189       329                   3,518  
Other   3,162       1,831       1,543       (2,801 )     3,735  
Total $ 148,035     $ 33,750     $ 3,089     $ (2,801 )   $ 182,073  


Three Months Ended December 31, 2022 North America   International   Products   Corp/Elim   Total
Oil & Gas $ 86,474     $ 8,636     $ 123     $     $ 95,233  
Aerospace & Defense   12,369       4,308       68             16,745  
Industrials   9,668       5,835       812             16,315  
Power Generation & Transmission   8,619       1,799       624             11,042  
Other Process Industries   8,561       3,716       5             12,282  
Infrastructure, Research & Engineering   4,658       1,930       1,505             8,093  
Petrochemical   5,304       123                   5,427  
Other   2,432       2,637       924       (2,912 )     3,081  
Total $ 138,085     $ 28,984     $ 4,061     $ (2,912 )   $ 168,218  


Year ended December 31, 2023 North America   International   Products   Corp/Elim   Total
Oil & Gas $ 379,221     $ 36,615     $ 159     $     $ 415,995  
Aerospace & Defense   56,000       20,711       286             76,997  
Industrials   42,518       26,292       1,773             70,583  
Power Generation and Transmission   23,598       6,609       3,767             33,974  
Other Process Industries   33,035       14,456       112             47,603  
Infrastructure, Research & Engineering   16,620       9,320       3,168             29,108  
Petrochemical   13,216       1,216                   14,432  
Other $ 15,122     $ 9,195     $ 3,721     $ (11,257 )   $ 16,781  
Total $ 579,330     $ 124,414     $ 12,986     $ (11,257 )   $ 705,473  


Year ended December 31, 2022 North America   International   Products   Corp/Elim   Total
Oil & Gas $ 356,763     $ 30,654     $ 335     $     $ 387,752  
Aerospace & Defense   61,475       18,763       314             80,552  
Industrials   38,197       23,703       2,083             63,983  
Power Generation and Transmission   31,197       8,304       2,603             42,104  
Other Process Industries   40,778       14,021       28             54,827  
Infrastructure, Research & Engineering   15,283       7,946       3,994             27,223  
Petrochemical   15,360       536                   15,896  
Other   14,283       8,498       3,370       (11,115 )     15,036  
Total $ 573,336     $ 112,425     $ 12,727     $ (11,115 )   $ 687,373  


Mistras Group, Inc. and Subsidiaries
Unaudited Revenues by Category (continued)
(in thousands)

The Company has retrospectively reclassified certain Oil and Gas sub-category revenues for each quarterly period in 2022 in order to conform the classification with the current year presentation. Total Oil and Gas sub-category revenues were unchanged in total in each quarterly period and for the full year ended December 31, 2022. The table below presents the reclassified balances for each quarterly period in the prior year.

  2022 Quarterly Revenues
  Three months ended
March 31,
  Three months ended
June 30,
  Three months ended
September 30,
  Three months ended
December 31,
Oil and Gas Revenue by sub-category              
Upstream $ 36,397     $ 38,051     $ 35,173     $ 36,435  
Midstream   20,427       27,153       25,885       23,540  
Downstream   37,399       36,061       35,973       35,258  
Total $ 94,223     $ 101,265     $ 97,031     $ 95,233  


Revenue by Oil & Gas Sub-category was as follows:

  Three months ended December 31,   Year ended December 31,
    2023       2022       2023       2022  
Oil and Gas Revenue by sub-category              
Upstream $ 40,887     $ 36,435     $ 157,828     $ 146,056  
Midstream   26,539       23,540       101,278       97,005  
Downstream   40,528       35,258       156,889       144,691  
Total $ 107,954     $ 95,233     $ 415,995     $ 387,752  


Consolidated Revenue by type was as follows:

  For the quarter ended December 31,   For the year ended December 31,
    2023       2022       2023       2022  
               
Field Services $ 121,932     $ 109,666     $ 470,433     $ 455,051  
Shop Laboratories   15,972       13,276       58,188       48,809  
Data Analytical Solutions   19,542       16,624       72,458       62,410  
Other   24,627       28,652       104,394       121,103  
Total $ 182,073     $ 168,218     $ 705,473     $ 687,373  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before
Special Items (non-GAAP)
(in thousands)
 
  For the quarter ended
December 31,
  For the year ended 
December 31,
    2023       2022       2023       2022  
North America:              
Income from operations (GAAP) $ 15,451     $ 14,301     $ 55,170     $ 49,616  
Bad debt provision for troubled customers, net of recoveries         (247 )           42  
Reorganization and other costs   386       59       960       99  
Legal settlement and insurance (recoveries) charges, net   908             1,058       (841 )
Acquisition-related expense, net                     45  
Income before special items (unaudited, non-GAAP) $ 16,745     $ 14,113     $ 57,188     $ 48,961  
               
International:              
Income (loss) from operations (GAAP) $ 802     $ 888     $ (12,229 )   $ 3,566  
Goodwill Impairment charges               13,799        
Reorganization and other costs   123       71       351       (43 )
Income before special items (unaudited, non-GAAP) $ 925     $ 959     $ 1,921     $ 3,523  
               
Products and Systems:              
Income (loss) from operations (GAAP) $ 345     $ 342     $ 267     $ (992 )
Reorganization and other costs   193             382        
Income (loss) before special items (unaudited, non-GAAP) $ 538     $ 342     $ 649     $ (992 )
               
Corporate and Eliminations:              
Loss from operations (GAAP) $ (15,892 )   $ (9,729 )   $ (45,112 )   $ (32,391 )
Legal settlement and insurance (recoveries) charges, net                     (153 )
Loss on debt modification                     693  
Reorganization and other costs   5,550             10,576       139  
Acquisition-related expense, net   4       12       9       31  
Loss before special items (unaudited, non-GAAP) $ (10,338 )   $ (9,717 )   $ (34,527 )   $ (31,681 )
               
Total Company              
Income (loss) from operations (GAAP) $ 706     $ 5,802     $ (1,904 )   $ 19,799  
Goodwill Impairment charges               13,799        
Bad debt provision for troubled customers, net of recoveries         (247 )           42  
Reorganization and other costs   6,252       130       12,269       195  
Legal settlement and insurance (recoveries) charges, net   908             1,058       (994 )
Loss on debt modification                     693  
Acquisition-related expense, net   4       12       9       76  
Income before special items (unaudited, non-GAAP) $ 7,870     $ 5,697     $ 25,231     $ 19,811  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Summary Cash Flow Information
(in thousands)
 
  For the quarter ended
December 31,
  For the year ended
December 31,
    2023       2022       2023       2022  
Net cash provided by (used in):              
Operating activities $ 16,064     $ 15,875     $ 26,748     $ 26,406  
Investing activities   (6,963 )     (3,361 )     (22,133 )     (12,238 )
Financing activities   (5,867 )     (11,570 )     (7,706 )     (16,323 )
Effect of exchange rate changes on cash   1,660       1,460       249       (1,467 )
Net change in cash and cash equivalents $ 4,894     $ 2,404     $ (2,842 )   $ (3,622 )


 
Mistras Group, Inc. and Subsidiaries
Unaudited 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,
    2023       2022       2023       2022  
               
Net cash provided by operating activities (GAAP) $ 16,064     $ 15,875     $ 26,748     $ 26,406  
Less:              
Purchases of property, plant and equipment   (6,451 )     (3,541 )     (20,854 )     (12,591 )
Purchases of intangible assets   (927 )     (245 )     (2,795 )     (825 )
Free cash flow (non-GAAP) $ 8,686     $ 12,089     $ 3,099     $ 12,990  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Gross Debt (GAAP) to Net Debt (non-GAAP)
(in thousands)
 
    For the year ended
December 31,
      2023       2022  
         
Current portion of long-term debt   $ 8,900     $ 7,425  
Long-term debt, net of current portion     181,499       183,826  
Total Gross Debt (GAAP)     190,399       191,251  
Less: Cash and cash equivalents     (17,646 )     (20,488 )
Total Net Debt (non-GAAP)   $ 172,753     $ 170,763  


 
Mistras Group, Inc. and Subsidiaries
Unaudited 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,
    2023       2022       2023       2022  
           
Net income (loss) $ (2,513 )   $ 2,863     $ (17,445 )   $ 6,574  
Less: Net income attributable to noncontrolling interests, net of taxes   1       21       8       75  
Net income (loss) attributable to Mistras Group, Inc. $ (2,514 )   $ 2,842     $ (17,453 )   $ 6,499  
Interest expense   4,668       3,713       16,761       10,505  
Provision (benefit) for income taxes   (1,449 )     (774 )     (1,220 )     2,720  
Depreciation and amortization   8,629       8,162       34,099       33,294  
Share-based compensation expense   1,498       1,169       5,147       5,335  
Goodwill Impairment charges               13,799        
Reorganization and other related costs, net   6,252       130       12,269       195  
Legal settlement and insurance recoveries, net   908             1,058       (994 )
Acquisition-related expense, net   4       12       9       76  
Loss on debt modification                     693  
Bad debt provision for troubled customers, net of recoveries         (247 )           42  
Foreign exchange (gain) loss   1,182       709       1,331       (215 )
Adjusted EBITDA $ 19,178     $ 15,716     $ 65,800     $ 58,150  


 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income 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,
    2023       2022       2023       2022  
Net income (loss) attributable to Mistras Group, Inc. (GAAP) $ (2,514 )   $ 2,842     $ (17,453 )   $ 6,499  
Bad debt provision for troubled customers, net of recoveries         (247 )           42  
Goodwill Impairment charges               13,799        
Reorganization and other related costs, net   6,252       130       12,269       195  
Loss on debt modification                     693  
Legal settlement and insurance recoveries, net   908             1,058       (994 )
Acquisition-related expense, net   4       12       9       76  
Special items total   7,164       (105 )     27,135       12  
Tax impact on special items   (1,787 )     25       (3,256 )     (5 )
Special items, net of tax $ 5,377     $ (80 )   $ 23,879     $ 7  
Net income attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP) $ 2,863     $ 2,762     $ 6,426     $ 6,506  
               
Diluted EPS (GAAP) $ (0.08 )   $ 0.09     $ (0.58 )   $ 0.21  
Special items, net of tax   0.18             0.79        
Diluted EPS Excluding Special Items (non-GAAP) $ 0.10     $ 0.09     $ 0.21     $ 0.21  

 


Primary Logo

Source: MISTRAS Group, Inc.

Welcome to your Umbraco installation

You're seeing the wonderful page because your website doesn't contain any published content yet.

Easy start with Umbraco.tv

We have created a bunch of 'how-to' videos, to get you easily started with Umbraco. Learn how to build projects in just a couple of minutes. Easiest CMS in the world.

Umbraco.tv →

Be a part of the community

The Umbraco community is the best of its kind, be sure to visit, and if you have any questions, we’re sure that you can get your answers from the community.

our.Umbraco →