PRINCETON JUNCTION, N.J., April 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 fiscal third quarter ending February 28, 2013. Revenue for the third quarter was $133.7 million and net income was $2.8 million, or $0.09 per diluted share. Revenue for the nine months ended February 28, 2013 was $384.8 million and net income was $16.2 million, or $0.56 per diluted share. Summary financial highlights for the Fiscal 2013 third quarter and nine month period:
Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated: "The Company's revenue growth momentum continued in the third quarter and the organic growth rate of our Services segment was a big factor in that momentum. In a traditionally soft third quarter, our International segment continued to improve, however, our results were impacted by project mix in our Services segment and lower product sales in our Products and Systems segment."
Dr. Vahaviolos continued, "I am very pleased with the tempo of our business in the third quarter and also with the broad-based opportunities we see developing for our business over the next year and beyond." Outlook and Guidance for Fiscal 2013
The Company's outlook is for continued double digit growth in revenue and Adjusted EBITDA*. The Company is confident in its long-term prospects, but in light of the current business and economic environment, the Company now estimates its fiscal 2013 Adjusted EBITDA* to be in the range of $75 million to $80 million, and revenues to be in the high end of its previous guidance of $525 million to $535 million. Earnings Conference Call
In connection with this earnings release, Mistras will hold its quarterly conference call on Tuesday, April 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 1-800-299-9630 and use confirmation code 54831776 when prompted. The International dial-in number is 1-617-786-2904. 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. 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 terms "Adjusted EBITDA" and "Adjusted Diluted Earnings Per Share" used in this release are financial measurements not calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP"). Reconciliations of Adjusted EBITDA and Adjusted Diluted Earnings Per Share to financial measurements under GAAP are set forth in a table attached to this press release. In addition, the Company has also included in the tables for non-GAAP measurements the non-GAAP measurement "Adjusted Net Income" reconciling this measurement 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 Diluted 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 and per share data)
February 28, 2013 May 31, 2012 ASSETS
Current Assets
Cash and cash equivalents
$ 8,903
$ 8,410
Accounts receivable, net
108,686
104,515
Inventories, net
12,126
12,492
Deferred income taxes
1,891
1,885
Prepaid expenses and other current assets
12,763
6,321
Total current assets
144,369
133,623
Property, plant and equipment, net
69,846
63,527
Intangible assets, net
56,428
34,469
Goodwill
125,532
96,819
Other assets
739
1,378
Total assets
$ 396,914
$ 329,816
LIABILITIES, PREFERRED STOCK AND EQUITY
Current Liabilities
Current portion of long-term debt
$ 7,730
$ 5,971
Current portion of capital lease obligations
6,714
5,951
Accounts payable
8,298
11,944
Accrued expenses and other current liabilities
43,411
39,334
Income taxes payable
1,997
1,119
Total current liabilities
68,150
64,319
Long-term debt, net of current portion
65,210
34,258
Obligations under capital leases, net of current portion
11,859
13,094
Deferred income taxes
14,582
4,901
Other long-term liabilities
21,447
19,996
Total liabilities
181,248
136,568
Commitments and contingencies
Preferred stock, 10,000,000 shares authorized
--
--
Equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,194,980 and 28,025,507 shares issued and outstanding as of February 28, 2013 and May 31, 2012, respectively
282
280
Additional paid-in capital
193,512
188,443
Retained earnings
23,531
7,336
Accumulated other comprehensive loss
(1,928)
(3,047)
Total Mistras Group, Inc. stockholders' equity
215,397
193,012
Noncontrolling interest
269
236
Total equity
215,666
193,248
Total liabilities, preferred stock and equity
$ 396,914
$ 329,816
Mistras Group, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations (in thousands, except per share data)
Three months ended Nine months ended
February 28, 2013 February 29, 2012 February 28, 2013 February 29, 2012 Revenues:
Services
$ 124,510
$ 94,253
$ 351,466
$ 281,097
Products
9,151
9,865
33,311
28,688 Total revenues
133,661
104,118
384,777
309,785 Cost of revenues:
Cost of services
91,209
66,336
248,769
194,270
Cost of products sold
3,527
4,238
13,022
12,094
Depreciation related to services
4,465
3,760
12,565
10,639
Depreciation related to products
254
200
593
563 Total cost of revenues
99,455
74,534
274,949
217,566 Gross profit
34,206
29,584
109,828
92,219
Selling, general and administrative expenses
27,209
20,806
74,063
59,565
Research and engineering
754
578
1,801
1,769
Depreciation and amortization
2,473
1,805
6,535
4,787
Acquisition-related expense, net
(1,212)
973
(1,006)
1,009
Income from operations
4,982
5,422
28,435
25,089 Other expenses
Interest expense
882
690
2,458
2,121
Loss on extinguishment of long-term debt
--
113
--
113
Income before provision for income taxes
4,100
4,619
25,977
22,855
Provision for income taxes
1,349
1,548
9,749
8,672 Net income
2,751
3,071
16,228
14,183
Net (income) loss attributable to noncontrolling interests, net of taxes
--
(34)
(33)
38
Net income attributable to Mistras Group, Inc.
$ 2,751
$ 3,037
$ 16,195
$ 14,221
Earnings per common share:
Basic
$ 0.10
$ 0.11
$ 0.58
$ 0.51
Diluted
$ 0.09
$ 0.11
$ 0.56
$ 0.50
Weighted average common shares outstanding:
Basic
28,175
27,921
28,121
27,794
Diluted
29,101
28,829
29,078
28,563
Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands)
Three months ended Nine months ended
February 28, 2013 February 29, 2012 February 28, 2013 February 29, 2012
Revenues
Services
$ 90,537
$ 80,895
$ 278,147
$ 253,493
International
37,516
17,164
88,722
38,794
Products and Systems
7,645
9,824
25,618
26,429
Corporate and eliminations
(2,037)
(3,765)
(7,710)
(8,931)
$ 133,661
$ 104,118
$ 384,777
$ 309,785
Three months ended Nine months ended
February 28, 2013 February 29, 2012 February 28, 2013 February 29, 2012
Gross profit
Services
$ 20,496
$ 20,640
$ 72,128
$ 68,001
International
9,851
4,586
24,231
12,263
Products and System
3,790
4,938
13,010
12,952
Corporate and eliminations
69
(580)
459
(997)
$ 34,206
$ 29,584
$ 109,828
$ 92,219
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 Nine months ended
February 28, 2013 February 29, 2012 February 28, 2013 February 29, 2012 EBITDA and Adjusted EBITDA data
Net income attributable to Mistras Group, Inc.
$ 2,751
$ 3,037
$ 16,195
$ 14,221
Interest expense
882
690
2,458
2,121
Provision for income taxes
1,349
1,548
9,749
8,672
Depreciation and amortization
7,192
5,765
19,693
15,989
EBITDA
12,174
11,040
48,095
41,003
Stock compensation expense
1,544
1,244
4,749
3,791
Acquisition-related expense, net
(1,212)
973
(1,006)
1,009
Loss on extinguishment of debt
--
113
--
113
Adjusted EBITDA
$ 12,506
$ 13,370
$ 51,838
$ 45,916
Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income Attributable to Mistras Group, Inc. (GAAP) to Adjusted Net Income and Adjusted Diluted Earnings Per Share (Non-GAAP) (in thousands, except per share data)
Three months ended Nine months ended
February 28, 2013 February 29, 2012 February 28, 2013 February 29, 2012 Adjusted net income
Net income attributable to Mistras Group, Inc. (GAAP)
$ 2,751
$ 3,037
$ 16,195
$ 14,221
Acquisition-related expense, net ($1.2 million benefit and $1.0 million expense, pre-tax, for the three months ended February 28, 2013 and February 28, 2012, respectively and $1.0 million benefit and $1.0 million expense, pretax, for the nine months ended February 28, 2013 and February 29, 2012, respectively)
(813)
647
(628)
626
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)
$ 1,938
$ 3,759
$ 15,567
$ 14,917
Adjusted diluted earnings per share
Diluted earnings per common share (GAAP)
$ 0.09
$ 0.11
$ 0.56
$ 0.50
Acquisition-related expense/Loss on extinguishment of long-term debt
(0.02)
0.02
(0.02)
0.02
Adjusted diluted earnings per share (Non-GAAP)
$ 0.07
$ 0.13
$ 0.54
$ 0.52 CONTACT: Nestor S. Makarigakis
Manager of Marketing Communications
marcom@mistrasgroup.com
1(609)716-4000
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