PRINCETON JUNCTION, N.J., Aug. 9, 2011 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), a leading "one source" global provider of technology-enabled asset protection solutions, today reported record financial results for the fourth quarter and fiscal year ended May 31, 2011. Revenue for the fourth quarter of fiscal 2011 was $102.1 million, an increase of 28%, over the $79.8 million reported in the fourth quarter of fiscal 2010. Adjusted EBITDA*, a non-GAAP measure detailed later in this release, increased 28% to $17.5 million in the fourth quarter of fiscal 2011 versus $13.7 million in the fourth quarter of fiscal 2010. Net income for the fourth quarter of fiscal 2011 grew by 27% to $6.7 million, or $0.25 per diluted share, versus $5.3 million, or $0.20 per diluted share, in the fourth quarter of fiscal 2010. For the year, net income was $16.4 million, or $0.61 per diluted share, versus $10.4 million, or $0.43 per diluted share, in fiscal 2010. Fiscal 2011 net income includes a fourth quarter pre-tax provision of $0.7 million for slow-moving inventory. Earnings per share would have been $0.26 and $0.63 per diluted share for the 2011 fourth quarter and fiscal year, respectively, without this inventory charge. Consistent with prior quarters, organic growth was a significant driver behind the overall revenue increase, contributing growth rates of 14% and 16% for the 2011 fourth quarter and fiscal year, respectively. During the fourth quarter, the Company achieved broad based revenue growth across all of its business segments and surpassed $100 million in quarterly revenue for the first time. Financial Highlights for the 4th Quarter and FY 2011 Fiscal Year: Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated that, "Once again, we are very pleased by the consistent financial results produced by the Mistras model. In both the fourth quarter and fiscal year, the Company generated record revenues, gross profit, operating income, net income, earnings per share and adjusted EBITDA. Our unique approach which provides 'One Source Asset Protection Solutions' to our customers, has once again produced significant amounts of organic and acquisition revenue growth. The growth fundamentals of our business are strong and we believe this growth is a testament as to how our technology based solutions are being received and implemented by our customers." Business Outlook/Guidance for Fiscal Year 2012 The Company's outlook is for continued double digit growth in revenue and Adjusted EDITDA*. The Company projects its 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 reaffirm or update its annual guidance at least quarterly. Dr.Vahaviolos concluded, "The Company is very pleased with the prospects for its business for fiscal 2012 and beyond. We believe that the Mistras model will continue to deliver the double digit growth in revenue and adjusted EBITDA that we have achieved for several years." Earnings Conference Call In connection with this earnings release, Mistras will hold its quarterly conference call on Wednesday, August 10 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 866-730-5770 and use confirmation code 90453125 when prompted. The International dial-in number is 857-350-1594. About Mistras Group, Inc. Mistras offers one of the broadest "one source" services and technology-enabled asset protection solution portfolios in the industry used to evaluate the structural integrity of energy, industrial and public infrastructure. Mission critical services and solutions are delivered globally and provide customers with the ability to extend the useful life of their assets, improve productivity and 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 and 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. The MISTRAS Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6966 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 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 17, 2010 and its Annual Report on Form 10-K for fiscal year 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. An explanation of Adjusted EBITDA and a reconciliation of this to a financial measurement under GAAP are set forth in a table attached to this press release.Mistras Group, Inc. Unaudited Consolidated Balance Sheets (in thousands, except share data) May 31, 2011 May 31, 2010 ASSETS Current Assets Cash and cash equivalents $ 10,879 $ 16,037 Accounts receivable, net 78,031 54,721 Inventories, net 9,830 8,736 Deferred income taxes 1,278 2,189 Prepaid expenses and other current assets 6,761 6,599 Total current assets 106,779 88,282 Property, plant and equipment, net 49,168 39,981 Intangible assets, net 27,304 16,088 Goodwill 64,146 44,315 Other assets 1,240 1,273 Total assets $ 248,637 $ 189,939 LIABILITIES, PREFERRED STOCK AND EQUITY Current liabilities Current portion of long-term debt $ 7,226 $ 7,610 Current portion of capital lease obligations 5,853 5,370 Accounts payable 6,656 4,640 Accrued expenses and other current liabilities 28,028 20,090 Income taxes payable 2,825 3,281 Total current liabilities 50,588 40,991 Long-term debt, net of current portion 14,625 5,691 Obligations under capital leases, net of current portion 9,623 9,199 Deferred income taxes 2,863 2,087 Other long-term liabilities 3,452 1,417 Total liabilities 81,151 59,385 Commitments and contingencies Preferred stock, 10,000,000 shares authorized -- -- Equity Common stock, $0.01 par value, 200,000,000 shares authorized, 27,667,122 and 26,663,528 shares issued and outstanding as of May 31, 2011 and May 31, 2010, respectively 277 267 Additional paid-in capital 180,594 162,054 Accumulated deficit (14,017) (30,448) Accumulated other comprehensive loss 303 (1,587) Total Mistras Group, Inc. stockholders' equity 167,157 130,286 Noncontrolling interest 329 268 Total equity 167,486 130,554 Total liabilities, preferred stock and equity $ 248,637 $ 189,939 Mistras Group, Inc. Unaudited Consolidated Statement of Operations (in thousands, except per share data) Three months ended May 31, Year ended May 31, 2011 2010 2011 2010 Revenues: Services $ 92,086 $ 72,188 $ 308,702 $ 248,672 Products 10,043 7,596 29,887 23,456 Total revenues 102,129 79,784 338,589 272,128 Cost of Revenues: Cost of services 61,758 49,075 209,512 169,591 Cost of goods sold 4,664 2,705 12,468 8,889 Depreciation of services 3,324 2,578 12,576 9,840 Depreciation of products 163 81 630 670 Total cost of revenues 69,909 54,439 235,186 188,990 Gross profit 32,220 25,345 103,403 83,138 Selling, general and administrative expenses 18,884 14,534 65,983 55,463 Research and engineering 512 884 2,150 2,402 Depreciation and amortization 1,497 1,115 5,386 4,673 Legal reserve (78) -- 273 (297) Income from operations 11,405 8,812 29,611 20,897 Other expenses Interest expense 816 706 2,773 3,531 Loss on extinguishment of long-term debt -- -- -- 387 Income before provision for income taxes 10,589 8,106 26,838 16,979 Provision for income taxes 3,940 2,835 10,502 6,527 Net income 6,649 5,271 16,336 10,452 Net loss (income) attributable to noncontrolling
interests, net of taxes69 7 95 (23) Net income attributable to Mistras Group, Inc. 6,718 5,278 16,431 10,429 Accretion of preferred stock -- -- -- 6,499 Net income attributable to common shareholders $ 6,718 $ 5,278 $ 16,431 $ 16,928 Earnings per common share: Basic $ 0.25 $ 0.20 $ 0.61 $ 0.78 Diluted $ 0.25 $ 0.20 $ 0.61 $ 0.43 Weighted average common shares outstanding: Basic 26,899 26,613 26,724 21,744 Diluted 27,384 26,795 26,933 24,430 Mistras Group, Inc. Unaudited Operating Data by Segment (in thousands) Three months ended May 31, Year ended May 31, 2011 2010 2011 2010 Revenues Services $ 85,041 $ 68,230 $ 283,139 $ 227,782 Products and Systems 10,131 5,738 26,105 18,875 International 9,736 7,598 36,798 30,920 Corporate and eliminations (2,779) (1,782) (7,453) (5,449) $ 102,129 $ 79,784 $ 338,589 $ 272,128 Three months ended May 31, Year ended May 31, 2011 2010 2011 2010 Gross profit Services $ 24,479 $ 20,132 $ 77,883 $ 61,963 Products and Systems 4,799 2,698 13,239 9,915 International 3,456 2,456 12,922 11,668 Corporate and eliminations (514) 59 (641) (408) $ 32,220 $ 25,345 $ 103,403 $ 83,138 Mistras Group, Inc. Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. to EBITDA and Adjusted EBITDA(in thousands) Three months ended May 31, Year ended May 31, 2011 2010 2011 2010 EBITDA and Adjusted EBITDA data Net income attributable to Mistras Group, Inc. $ 6,718 $ 5,278 $ 16,431 $ 10,429 Interest expense 816 706 2,773 3,531 Provision for income taxes 3,940 2,835 10,502 6,527 Depreciation and amortization 4,984 3,774 18,592 15,183 EBITDA $ 16,458 $ 12,593 $ 48,298 $ 35,670 Legal reserve (78) -- 273 (297) Large customer bankruptcy -- (372) -- 395 Stock compensation expense 1,071 835 3,751 2,695 Acquisition related costs -- 614 -- 614 Loss on extinguishment of debt -- -- -- 387 Adjusted EBITDA $ 17,451 $ 13,670 $ 52,322 $ 39,464 CONTACT: Nestor S. Makarigakis
Manager of Marketing and Communications
1(609) 716-4000
marcom@mistrasgroup.com