PRINCETON JUNCTION, N.J., Jan. 8, 2013 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), a leading "one source" global provider of technology-enabled asset protection solutions, today reported financial results for its second quarter ended November 30, 2012. Revenue for the second quarter of fiscal 2013 was $137.7 million and net income was $9.2 million, or $0.32 per diluted share. Summary financial highlights for the Fiscal 2013 second quarter and six month periods;
Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated, "Despite an uncertain economic environment in capital products and services spending, the Mistras model once again delivered strong financial results in our Second Fiscal Quarter. We believe that our leadership position in Asset Protection Solutions, along with our model which achieves revenue growth both organically and through acquisitions, will continue to be the right model for our shareholders in the future." Outlook and Guidance for Fiscal 2013
The Company's outlook is for continued double digit growth in revenue and Adjusted EBITDA*. The Company is adjusting its fiscal 2013 guidance and now expects revenues for fiscal 2013 to be in the range of $525 million to $535 million and Adjusted EBITDA* to be in the range of $78 million to $85 million. Mistras does not provide quarterly guidance, but expects to affirm 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 Wednesday, January 9th 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 1-888-396-2298 and use confirmation code 54810286 when prompted. The International dial-in number is 1-617-847-8708. 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, 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 Annual Report on Form 10-K for fiscal year 2012 filed with the Securities and Exchange Commission on August 14, 2012, 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" used in this release is a financial measurement not calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP"). A reconciliation of Adjusted EBITDA to a financial measurement under GAAP is set forth in a table attached to this press release. In addition, the Company has also included tables for non-GAAP measurements "Adjusted Net Income" and "Adjusted Earnings Per Share," also reconciling these measurements to a financial measurement under GAAP. The Company believes that investors and other users of the financial statements benefit from the presentation of Adjusted EBITDA, Adjusted Net Income and Adjusted 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.Mistras Group, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets (in thousands, except share data)
November 30, 2012 May 31, 2012 ASSETS
Current Assets
Cash and cash equivalents
$ 7,985
$ 8,410
Accounts receivable, net
105,901
104,515
Inventories, net
11,542
12,492
Deferred income taxes
1,876
1,885
Prepaid expenses and other current assets
7,650
6,321
Total current assets
134,954
133,623
Property, plant and equipment, net
69,796
63,527
Intangible assets, net
58,201
34,469
Goodwill
109,126
96,819
Other assets
750
1,378
Total assets
$ 372,827
$ 329,816
LIABILITIES, PREFERRED STOCK AND EQUITY
Current Liabilities
Current portion of long-term debt
$ 7,948
$ 5,971
Current portion of capital lease obligations
6,893
5,951
Accounts payable
8,937
11,944
Accrued expenses and other current liabilities
41,591
39,334
Income taxes payable
4,570
1,119
Total current liabilities
69,939
64,319
Long-term debt, net of current portion
51,717
34,258
Obligations under capital leases, net of current portion
12,763
13,094
Deferred income taxes
5,702
4,901
Other long-term liabilities
23,350
19,996
Total liabilities
163,471
136,568
Commitments and contingencies
Preferred stock, 10,000,000 shares authorized
--
--
Equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,161,857 and 28,025,507 shares issued and outstanding as of November 30, 2012 and May 31, 2012, respectively
282
280
Additional paid-in capital
191,586
188,443
Retained earnings
20,780
7,336
Accumulated other comprehensive loss
(3,561)
(3,047)
Total Mistras Group, Inc. stockholders' equity
209,087
193,012
Noncontrolling interest
269
236
Total equity
209,356
193,248
Total liabilities, preferred stock and equity
$ 372,827
$ 329,816
Mistras Group, Inc. Unaudited Consolidated Statement of Operations Three and Six Months Ended November 30, 2012 and November 30, 2011
Three months ended November 30, Six months ended November 30,
2012 2011 2012 2011 Revenues:
Services
$ 127,731
$ 103,942
$ 226,956
$ 186,844
Products
9,998
10,278
24,160
18,823 Total revenues
137,729
114,220
251,116
205,667 Cost of revenues:
Cost of services
87,044
71,047
157,560
127,934
Cost of products sold
4,485
4,216
9,495
7,856
Depreciation related to services
4,124
3,556
8,100
6,879
Depreciation related to products
171
186
339
363 Total cost of revenues
95,824
79,005
175,494
143,032 Gross profit
41,905
35,215
75,622
62,635
Selling, general and administrative expenses
23,362
19,378
46,854
38,759
Research and engineering
530
602
1,047
1,191
Depreciation and amortization
2,167
1,503
4,062
2,982
Acquisition-related expense
(160)
(339)
(339)
(339)
Income from operations
16,006
14,071
23,998
20,042 Other expenses
Interest expense
1,075
1,145
2,121
1,806
Income before provision for income taxes
14,931
12,926
21,877
18,236
Provision for income taxes
5,745
5,008
8,400
7,124 Net income
9,186
7,918
13,477
11,112
Net (income) loss attributable to noncontrolling interests, net of taxes
(23)
38
(33)
72
Net income attributable to Mistras Group, Inc.
$ 9,163
$ 7,956
$ 13,444
$ 11,184
Earnings per common share:
Basic
$ 0.33
$ 0.29
$ 0.48
$ 0.40
Diluted
$ 0.32
$ 0.28
$ 0.46
$ 0.39
Weighted average common shares outstanding:
Basic
28,144
27,786
28,094
27,731
Diluted
29,008
28,600
29,036
28,417
Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands)
Three months ended November 30, Six months ended November 30,
2012 2011 2012 2011
Revenues
Services
$ 105,213
$ 96,909
$ 187,610
$ 172,598
International
26,777
11,857
51,206
21,630
Products and Systems
8,439
9,092
17,973
16,605
Corporate and eliminations
(2,700)
(3,638)
(5,673)
(5,166)
$ 137,729
$ 114,220
$ 251,116
$ 205,667
Three months ended November 30, Six months ended November 30,
2012 2011 2012 2011
Gross profit
Services
$ 30,692
$ 27,053
$ 51,632
$ 47,361
International
7,299
4,246
14,380
7,677
Products and System
3,975
4,263
9,220
8,014
Corporate and eliminations
(61)
(347)
390
(417)
$ 41,905
$ 35,215
$ 75,622
$ 62,635
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. to EBITDA and Adjusted EBITDA(in thousands)
Three months ended November 30, Six months ended November 30,
2012 2011 2012 2011 EBITDA and Adjusted EBITDA data
Net income attributable to Mistras Group, Inc.
$ 9,163
$ 7,956
$ 13,444
$ 11,184
Interest expense
1,075
1,145
2,121
1,806
Provision for income taxes
5,745
5,008
8,400
7,124
Depreciation and amortization
6,462
5,245
12,501
10,224
EBITDA
22,445
19,354
36,466
30,338
Stock compensation expense
1,572
1,545
3,206
2,547
Acquisition-related costs
(160)
(339)
(339)
(339)
Adjusted EBITDA
$ 23,857
$ 20,560
$ 39,333
$ 32,546
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. (GAAP) to Adjusted Net Income and Adjusted Earnings Per Share (Non-GAAP)(in thousands, except per share data)
Three months ended November 30, Six months ended November 30,
2012 2011 2012 2011 Adjusted net income
Net income attributable to Mistras Group, Inc. (GAAP)
$ 9,163
$ 7,956
$ 13,444
$ 11,184
Acquisition-related costs ($0.2 million and $0.3 million, pre-tax for the three months ended November 30, 2012 and 2011 respectively and $0.3 million, pretax for each of the six months ended November 30, 2012 and 2011)
(98)
(208)
(208)
(206)
Adjusted net income (Non-GAAP)
$ 9,065
$ 7,748
$ 13,236
$ 10,978
Adjusted diluted net earnings per common share
Diluted earnings per common share (GAAP)
$ 0.32
$ 0.28
$ 0.46
$ 0.39
Acquisition-related costs
--
(0.01)
(0.01)
(0.01)
Adjusted diluted net earnings per common share (Non-GAAP)
$ 0.32
$ 0.27
$ 0.45
$ 0.38 CONTACT: Nestor S. Makarigakis, Manager of Marketing Communications,
marcom@mistrasgroup.com, 1(609)716-4000
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