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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