PRINCETON JUNCTION, N.J., April 4, 2012 (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 fiscal 2012 third quarter ending February 29th. Revenue for the third quarter was $104.1 million, an increase of 31% over the $79.2 million reported in the third quarter of fiscal 2011. Adjusted EBITDA*, a non-GAAP measure detailed later in this release, increased 28% to $13.4 million in the third quarter of fiscal 2012 versus $10.5 million in the third quarter of fiscal 2011. Net income for the third quarter of fiscal 2012, which includes charges for acquisition related expenses of $0.8 million and a loss on early extinguishment of debt of $0.1 million, was $3.0 million, or $0.11 per diluted share, a 24% increase compared to the third quarter of fiscal 2011. On a non-GAAP basis, net income for the third quarter of fiscal 2012 with the adjustments detailed in the attached reconciliation schedule, including those mentioned above, grew 51% to $3.7 million or $0.13 per diluted share, versus $2.4 million, or $0.09 per diluted share, in the third quarter of fiscal 2011. Consistent with prior quarters, organic growth was a significant contributor to the revenue gain. In the third quarter of fiscal 2012, the organic growth rate was 17%, followed by acquisition growth of 15% and the balance due to foreign currency fluctuations. Also consistent with prior quarters, the revenue growth in the third quarter was achieved across a broad range of target markets. Additional Financial Highlights for the Fiscal 2012 Third Quarter and Nine Month periods: Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated that "I am pleased with the continued momentum of our business in the third quarter, where we achieved significant revenue growth across all of our market segments, and once again delivered organic revenue growth in the mid-teens." He then continued, "During the third quarter we closed several small, but strategic acquisitions in France, the U.K. and Canada that are strengthening our presence abroad and will be in alignment with our business model, capable of delivering outsourced inspection evergreen type work." Business Outlook/Guidance for Fiscal Year 2012 The Company's outlook is for continued double digit growth in revenue and Adjusted EDITDA*. Based on the results of the first nine months of fiscal 2012, the Company is adjusting its previously issued guidance and now projects its fiscal 2012 revenues to be in the range of $415 million to $420 million and Adjusted EBITDA* to be in the range of $66 million to $68 million. Mistras does not provide specific guidance for individual quarters, but will reaffirm or update its annual guidance at least quarterly. Earnings Conference Call In connection with this earnings release, Mistras will hold its quarterly conference call on Thursday, April 5th 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 1-866-202-4683 and use confirmation code 12752396 when prompted. The International dial-in number is 1-617-213-8846. 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 for fiscal year 2011 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" and the adjustments to net income and to earnings per share are financial measurements 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 and these adjustments to net income and earnings per share because they provide additional metrics to compare the Company's operating performance on a consistent basis and measure underlying trends and results of the Company's business. Reconciliations of Adjusted EBITDA, adjusted net income and adjusted earnings per share to financial measurements under GAAP are set forth in tables attached to this press release.Mistras Group, Inc. Unaudited Consolidated Balance Sheets (in thousands, except share data) February 29, 2012 May 31, 2011 ASSETS Current Assets Cash and cash equivalents $ 7,931 $ 10,879 Accounts receivable, net 95,257 78,031 Inventories, net 13,173 9,830 Deferred income taxes 1,324 1,278 Prepaid expenses and other current assets 9,354 6,761 Total current assets 127,039 106,779 Property, plant and equipment, net 58,570 49,168 Intangible assets, net 33,559 27,304 Goodwill 80,053 64,146 Other assets 1,511 1,240 Total assets $ 300,732 $ 248,637 LIABILITIES, PREFERRED STOCK AND EQUITY Current Liabilities Current portion of long-term debt $ 5,963 $ 7,226 Current portion of capital lease obligations 6,644 5,853 Accounts payable 7,142 6,656 Accrued expenses and other current liabilities 40,332 28,028 Income taxes payable 466 2,825 Total current liabilities 60,547 50,588 Long-term debt, net of current portion 34,645 14,625 Obligations under capital leases, net of current portion 12,847 9,623 Deferred income taxes 2,425 2,863 Other long-term liabilities 5,197 3,452 Total liabilities 115,661 81,151 Commitments and contingencies Preferred stock, 10,000,000 shares authorized -- -- Equity Common stock, $0.01 par value, 200,000,000 shares authorized, 27,938,173 and 27,667,122 shares issued and outstanding as of February 29, 2012 and May 31, 2011, respectively 279 277 Additional paid-in capital 185,984 180,594 Retained earnings (accumulated deficit) 204 (14,017) Accumulated other comprehensive (loss) income (1,675) 303 Total Mistras Group, Inc. stockholders' equity 184,792 167,157 Noncontrolling interest 279 329 Total equity 185,071 167,486 Total liabilities, preferred stock and equity $ 300,732 $ 248,637 Mistras Group, Inc. Unaudited Consolidated Statement of Operations Three and Nine Months Ended February 29, 2012 and February 28, 2011 (in thousands, except per share data) Three months ended Nine months ended February 29, 2012 February 28, 2011 February 29, 2012 February 28, 2011 Revenues: Services $ 94,253 $ 72,411 $ 281,097 $ 216,616 Products 9,865 6,802 28,688 19,844 Total revenues 104,118 79,213 309,785 236,460 Cost of revenues: Cost of services 66,336 50,696 194,270 147,754 Cost of products sold 4,238 2,460 12,094 7,804 Depreciation related to services 3,760 3,307 10,639 9,252 Depreciation related to products 200 153 563 467 Total cost of revenues 74,534 56,616 217,566 165,277 Gross profit 29,584 22,597 92,219 71,183 Selling, general and administrative expenses 20,806 16,005 59,565 47,099 Research and engineering 578 514 1,769 1,638 Depreciation and amortization 1,805 1,385 4,787 3,889 Acquisition-related costs 849 -- 510 -- Legal reserve -- -- -- 351 Income from operations 5,546 4,693 25,588 18,206 Other expenses Interest expense 814 596 2,620 1,957 Loss on extinguishment of long-term debt 113 -- 113 -- Income before provision for income taxes 4,619 4,097 22,855 16,249 Provision for income taxes 1,548 1,690 8,672 6,562 Net income 3,071 2,407 14,183 9,687 Net (income) loss attributable to noncontrolling interests, net of taxes (34) 36 38 26 Net income attributable to Mistras Group, Inc. $ 3,037 $ 2,443 $ 14,221 $ 9,713 Earnings per common share: Basic $ 0.11 $ 0.09 $ 0.51 $ 0.36 Diluted $ 0.11 $ 0.09 $ 0.50 $ 0.36 Weighted average common shares outstanding: Basic 27,921 26,667 27,794 26,665 Diluted 28,829 26,919 28,563 26,824 Mistras Group, Inc. Unaudited Operating Data by Segment (in thousands) Three months ended Nine months ended February 29, 2012 February 28, 2011 February 29, 2012 February 28, 2011 Revenues Services $ 80,895 $ 66,708 $ 253,493 $ 198,098 Products and Systems 9,824 5,436 26,429 15,974 International 17,164 8,671 38,794 27,062 Corporate and eliminations (3,765) (1,602) (8,931) (4,674) $ 104,118 $ 79,213 $ 309,785 $ 236,460 Three months ended Nine months ended February 29, 2012 February 28, 2011 February 29, 2012 February 28, 2011 Gross profit Services $ 20,640 $ 16,650 $ 68,001 $ 53,404 Products and Systems 4,938 3,049 12,952 8,440 International 4,586 2,935 12,263 9,466 Corporate and eliminations (580) (37) (997) (127) $ 29,584 $ 22,597 $ 92,219 $ 71,183 Mistras Group, Inc. Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. (GAAP) to EBITDA and Adjusted EBITDA (Non-GAAP)(in thousands) Three months ended Nine months ended February 29, 2012 February 28, 2011 February 29, 2012 February 28, 2011 EBITDA and Adjusted EBITDA data Net income attributable to Mistras Group, Inc. (GAAP) $ 3,037 $ 2,443 $ 14,221 $ 9,713 Interest expense 814 596 2,620 1,957 Provision for income taxes 1,548 1,690 8,672 6,562 Depreciation and amortization 5,765 4,845 15,989 13,608 EBITDA $ 11,164 $ 9,574 $ 41,502 $ 31,840 Stock compensation expense 1,244 903 3,791 2,680 Acquisition-related costs 849 -- 510 -- Legal reserve -- -- -- 351 Loss on extinguishment of long-term debt 113 -- 113 -- Adjusted EBITDA (Non-GAAP) $ 13,370 $ 10,477 $ 45,916 $ 34,871 Mistras Group, Inc. Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. (GAAP) to Adjusted Net Income and Adjusted Earnings Per Share (Non-GAAP)(in thousands) Three months ended Nine months ended February 29, 2012 February 28, 2011 February 29, 2012 February 28, 2011 Adjusted net income Net income attributable to Mistras Group, Inc. (GAAP) $ 3,037 $ 2,443 $ 14,221 $ 9,713 Acquisition-related costs ($0.8 million and $0.5 million, pre-tax for each of the three and nine months ended February 29, 2012) 565 -- 317 -- Legal reserve ($0.4 million, pre-tax for the nine months ended February 28, 2011) -- -- -- 209 Loss on extinguishment of long-term debt ($0.1 million, pre-tax for each of the three and nine months ended February 29, 2012) 75 -- 70 -- Adjusted net income (Non-GAAP) $ 3,677 $ 2,443 $ 14,608 $ 9,922 Adjusted diluted net earnings per common share Diluted earnings per common share (GAAP) $ 0.11 $ 0.09 $ 0.50 $ 0.36 Acquisition-related costs 0.02 -- 0.01 -- Legal reserve -- -- -- 0.01 Loss on extinguishment of long-term debt -- -- -- -- Adjusted diluted net earnings per common share (Non-GAAP) $ 0.13 $ 0.09 $ 0.51 $ 0.37 CONTACT: Nestor S. Makarigakis,
Manager of Marketing Communications,
marcom@mistrasgroup.com,
1(609)716-4000
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