PRINCETON JUNCTION, N.J., Aug. 7, 2013 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), a leading "one source" global provider of technology-enabled asset protection solutions, today reported fiscal 2013 fourth quarter and full year results. Results for the full year of fiscal 2013 include revenue of $529.3 million, and net income of $11.6 million, or $0.40 per share. The fourth quarter results include revenue of $144.5 million and a net loss of $4.5 million, or ($0.16) per share. Both the fourth quarter and full year were impacted by a $9.9 million goodwill impairment charge discussed below.

Summary financial highlights for the fiscal 2013 fourth quarter and full year:

  • Adjusted EBITDA of $16.5 million in the fourth quarter and $68.3 million for the full year.
  • Adjusted Diluted Earnings Per Share of $0.16 in the fourth quarter and $0.70 for the full year, which excludes the impact of the goodwill impairment charge and acquisition related expense, net. 
  • 21% revenue growth in fiscal 2013, including 6% organic growth for the Services segment. 
  • Net Cash Provided by Operating Activities of $43.5 million for the fiscal year, a 39% increase over the prior year. 
  • During the quarter, the Company recognized a goodwill impairment charge related to its operations in Brazil totaling approximately $9.9 million, which reduced EPS by approximately $0.34 per share in the fourth quarter and full year.

Outlook and Guidance for Fiscal 2014

Consistent with the guidance communicated during its June 26, 2013 conference call, the Company expects 2014 revenues to be in the range of $570 million to $600 million and Adjusted EBITDA to be in the range of $74 million to $80 million. The Company does not provide quarterly guidance, but expects to update its annual guidance at least quarterly.

Sotirios Vahaviolos, Mistras Chairman and Chief Executive Officer stated "The difficult economic environments in Europe and Brazil, as well as a tight market in the U.S. resulted in a disappointing finish for fiscal 2013. However, despite the weaker fourth quarter, we still had good profitable results for the year. We are encouraged by the 6% organic growth of our Services business under an adverse competitive U.S. marketplace in fiscal 2013, which, combined with the award of new evergreen contracts in Europe, positions us for a good start and strong finish for fiscal 2014."

Conference Call

In connection with this release, Mistras will hold a conference call on Thursday, August 8, 2013 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 1-866-515-2909 and use confirmation code 76981828 when prompted. The International dial-in number is 1-617-399-5123.

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.

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)
 May 31, 
20132012
 ASSETS   
Current Assets
Cash and cash equivalents$ 7,802$ 8,410
Accounts receivable, net108,554104,515
Inventories12,50412,492
Deferred income taxes2,6211,885
Prepaid expenses and other current assets8,1566,321
Total current assets139,637133,623
Property, plant and equipment, net68,41963,527
Intangible assets, net52,42834,469
Other assets9061,378
Goodwill115,27096,819
Total assets$ 376,660$ 329,816
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$ 8,490$ 11,944
Accrued expenses and other current liabilities47,83939,334
Current portion of long-term debt7,4185,971
Current portion of capital lease obligations6,7665,951
Income taxes payable1,7031,119
Total current liabilities72,21664,319
Long-term debt, net of current portion52,84934,258
Obligations under capital leases, net of current portion10,92313,094
Deferred income taxes11,6144,901
Other long-term liabilities18,77819,996
Total liabilities166,380136,568
Commitments and contingencies
Equity
Preferred stock, 10,000,000 shares authorized----
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,210,862 and 28,025,507 shares issued and outstanding as of May 31, 2013 and May 31, 2012, respectively282280
Additional paid-in capital195,241188,443
Retained earnings18,9827,336
Accumulated other comprehensive loss(4,452)(3,047)
Total Mistras Group, Inc. stockholders' equity210,053193,012
Noncontrolling interests227236
Total equity210,280193,248
Total liabilities and equity$ 376,660$ 329,816
Mistras Group, Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations
(in thousands, except per share data)
 Three months ended  Years ended 
May 31, 2013May 31, 2012May 31, 2013May 31, 2012
Revenues:
Services$ 135,802$ 112,938$ 487,268$ 394,035
Products and systems8,70314,15242,01442,840
Total revenues144,505127,090529,282436,875
Cost of revenues:
Cost of services98,00077,406346,769271,676
Cost of products and systems sold3,2547,84616,27619,940
Depreciation related to services4,3984,29016,96314,929
Depreciation related to products and systems31077903640
Total cost of revenues105,96289,619380,911307,185
Gross profit38,54337,471148,371129,690
Selling, general and administrative expenses27,72923,533101,79283,098
Research and engineering6462902,4472,059
Depreciation and amortization2,2461,6688,7816,455
Acquisition-related expense, net(1,135)971(2,141)1,980
Goodwill impairment9,938--9,938--
Income (loss) from operations(881)11,00927,55436,098
Other expenses
Interest expense8301,0113,2883,132
Gain on extinguishment of long-term debt--(784)--(671)
Income (loss) before provision for income taxes(1,711)10,78224,26633,637
Provision for income taxes2,8783,61912,62712,291
Net income (loss)(4,589)7,16311,63921,346
Net (income) loss attributable to noncontrolling interests, net of taxes40(31)77
Net income (loss) attributable to Mistras Group, Inc.$ (4,549)$ 7,132$ 11,646$ 21,353
Earnings (net loss) per common share:
Basic$ (0.16)$ 0.25$ 0.41$ 0.77
Diluted$ (0.16)$ 0.25$ 0.40$ 0.74
Weighted average common shares outstanding:
Basic28,20227,97228,14127,839
Diluted28,20228,93529,10628,685
Mistras Group, Inc. and Subsidiaries
Unaudited Operating Data by Segment
(in thousands)
 Three months ended May 31,  Year ended May 31, 
2013201220132012
 Revenues 
Services$ 102,704$ 96,300$ 380,851$ 349,793
International38,11820,672126,84059,466
Products and Systems7,68313,65433,30140,083
Corporate and eliminations(4,000)(3,536)(11,710)(12,467)
$ 144,505$ 127,090$ 529,282$ 436,875
 Three months ended May 31,  Year ended May 31, 
2013201220132012
 Gross profit 
Services$ 26,779$ 26,412$ 98,907$ 94,413
International8,0886,84332,31919,106
Products and Systems3,9375,62616,94718,578
Corporate and eliminations(261)(1,410)198(2,407)
$ 38,543$ 37,471$ 148,371$ 129,690
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 May 31,  Year ended May 31, 
2013201220132012
EBITDA and Adjusted EBITDA data  
Net income (loss) attributable to Mistras Group, Inc. (GAAP)$ (4,549)$ 7,132$ 11,646$ 21,353
Interest expense8301,0113,2883,132
Provision for income taxes2,8783,61912,62712,291
Depreciation and amortization6,9546,03526,64722,024
EBITDA (non-GAAP)6,11317,79754,20858,800
Stock compensation expense1,5361,3066,2855,097
Acquisition-related expense, net(1,135)971(2,141)1,980
Goodwill impairment9,938--9,938--
Gain on extinguishment of debt--(784)--(671)
Adjusted EBITDA (non-GAAP)$ 16,452$ 19,290$ 68,290$ 65,206
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 May 31,  Year ended May 31, 
2013201220132012
Adjusted Net Income
Net income (loss) attributable to Mistras Group, Inc. (GAAP)$ (4,549)$ 7,132$ 11,646$ 21,353
Acquisition-related expense, net ($1.1 million benefit and $1.0 million expense, pre-tax, for the three months ended May 31, 2013 and 2012, respectively and $2.1 million benefit and $2.0 million expense, pretax, for the year ended May 31, 2013 and 2012, respectively)(738)645(1,351)1,257
Goodwill impairment9,938--9,938--
Gain on extinguishment of long-term debt ($0.8 million and $0.7 million, pre-tax for the three months and year ended May 31, 2012, respectively)--(521)--(426)
Adjusted Net Income (non-GAAP)$ 4,651$ 7,256$ 20,233$ 22,184
Adjusted Diluted Earnings Per Share
Diluted earnings (loss) per common share (GAAP)$ (0.16)$ 0.25$ 0.40$ 0.74
Acquisition-related expense(0.03)0.02(0.04)0.04
Goodwill impairment0.35--0.34--
Gain on extinguishment of long-term debt--(0.02)--(0.01)
Adjusted Diluted Earnings Per Share (non-GAAP)$ 0.16$ 0.25$ 0.70$ 0.77
CONTACT: Nestor S. Makarigakis,

         Manager of Marketing Communications

         marcom@mistrasgroup.com

         1(609)716-4000