PRINCETON JUNCTION, N.J., Oct. 10, 2011 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), 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 traditionally a soft 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.

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, 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, 2011May 31, 2011
ASSETS 
Current Assets
Cash and cash equivalents$ 6,491$ 10,879
Accounts receivable, net72,70678,031
Inventories, net10,2269,830
Deferred income taxes1,2821,278
Prepaid expenses and other current assets6,8256,761
Total current assets97,530106,779
Property, plant and equipment, net52,75049,168
Intangible assets, net28,16327,304
Goodwill68,97064,146
Other assets1,1041,240
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 obligations6,5265,853
Accounts payable5,5806,656
Accrued expenses and other current liabilities29,02028,028
Income taxes payable2,3652,825
Total current liabilities50,04250,588
Long-term debt, net of current portion9,49514,625
Obligations under capital leases, net of current portion11,0479,623
Deferred income taxes2,9202,863
Other long-term liabilities3,7193,452
Total liabilities77,22381,151
Commitments and contingencies
Preferred stock, 10,000,000 shares authorized----
Equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 27,712,038 and 27,667,122
shares issued and outstanding as of August 31, 2011 and May 31, 2011, respectively
277277
Additional paid-in capital181,521180,594
Accumulated deficit(10,789)(14,017)
Accumulated other comprehensive income (loss)(7)303
Total Mistras Group, Inc. stockholders' equity171,002167,157
Noncontrolling interest292329
Total equity171,294167,486
Total liabilities, preferred stock and equity$ 248,517$ 248,637
Mistras Group, Inc.
Unaudited Consolidated Statement of Operations
(in thousands, except per share data)
   
  Three months ended August 31, 
 20112010
Revenues:
Services$ 82,902$ 61,252
Products8,5457,158
Total revenues91,44768,410
Cost of revenues:
Cost of services56,88741,391
Cost of products sold3,6403,277
Depreciation related to services3,3232,809
Depreciation related to products177155
Total cost of revenues64,02747,632
Gross profit27,42020,778
Selling, general and administrative expenses19,38115,479
Research and engineering589555
Depreciation and amortization1,4791,178
Legal reserve--250
Income from operations5,9713,316
Other expenses
Interest expense661690
Income before provision for income taxes5,3102,626
Provision for income taxes2,1161,054
Net income3,1941,572
Net loss attributable to noncontrolling interests, net of taxes3420
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:
Basic27,67726,664
Diluted28,22526,778
Mistras Group, Inc.
Unaudited Operating Data by Segment
(in thousands)
   
   
  Three months ended August 31, 
 20112010
Revenues 
Services$ 75,689$ 55,282
Products and Systems7,5135,310
International9,7739,040
Corporate and eliminations(1,528)(1,222)
$ 91,447$ 68,410
 Three months ended August 31, 
20112010
 Gross profit 
Services$ 20,308$ 15,001
Products and Systems3,7512,569
International3,4313,271
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, 
 20112010
EBITDA and Adjusted EBITDA data
Net income attributable to Mistras Group, Inc.$ 3,228$ 1,592
Interest expense661690
Provision for income taxes2,1161,054
Depreciation and amortization4,9794,142
EBITDA$ 10,984$ 7,478
Legal reserve--250
Stock compensation expense1,002729
Adjusted EBITDA$ 11,986$ 8,457
CONTACT: Nestor S. Makarigakis

         Manager of Marketing and Communications

         MISTRAS Group, Inc.

         1 (609) 716-4000

         marcom@mistrasgroup.com

         www.mistrasgroup.com