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: 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,
2013 2012 ASSETS
Current Assets
Cash and cash equivalents
$ 7,802
$ 8,410
Accounts receivable, net
108,554
104,515
Inventories
12,504
12,492
Deferred income taxes
2,621
1,885
Prepaid expenses and other current assets
8,156
6,321
Total current assets
139,637
133,623
Property, plant and equipment, net
68,419
63,527
Intangible assets, net
52,428
34,469
Other assets
906
1,378
Goodwill
115,270
96,819
Total assets
$ 376,660
$ 329,816
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$ 8,490
$ 11,944
Accrued expenses and other current liabilities
47,839
39,334
Current portion of long-term debt
7,418
5,971
Current portion of capital lease obligations
6,766
5,951
Income taxes payable
1,703
1,119
Total current liabilities
72,216
64,319
Long-term debt, net of current portion
52,849
34,258
Obligations under capital leases, net of current portion
10,923
13,094
Deferred income taxes
11,614
4,901
Other long-term liabilities
18,778
19,996
Total liabilities
166,380
136,568
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, respectively
282
280
Additional paid-in capital
195,241
188,443
Retained earnings
18,982
7,336
Accumulated other comprehensive loss
(4,452)
(3,047)
Total Mistras Group, Inc. stockholders' equity
210,053
193,012
Noncontrolling interests
227
236
Total equity
210,280
193,248
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, 2013 May 31, 2012 May 31, 2013 May 31, 2012 Revenues:
Services
$ 135,802
$ 112,938
$ 487,268
$ 394,035
Products and systems
8,703
14,152
42,014
42,840 Total revenues
144,505
127,090
529,282
436,875 Cost of revenues:
Cost of services
98,000
77,406
346,769
271,676
Cost of products and systems sold
3,254
7,846
16,276
19,940
Depreciation related to services
4,398
4,290
16,963
14,929
Depreciation related to products and systems
310
77
903
640 Total cost of revenues
105,962
89,619
380,911
307,185 Gross profit
38,543
37,471
148,371
129,690
Selling, general and administrative expenses
27,729
23,533
101,792
83,098
Research and engineering
646
290
2,447
2,059
Depreciation and amortization
2,246
1,668
8,781
6,455
Acquisition-related expense, net
(1,135)
971
(2,141)
1,980
Goodwill impairment
9,938
--
9,938
--
Income (loss) from operations
(881)
11,009
27,554
36,098 Other expenses
Interest expense
830
1,011
3,288
3,132
Gain on extinguishment of long-term debt
--
(784)
--
(671)
Income (loss) before provision for income taxes
(1,711)
10,782
24,266
33,637
Provision for income taxes
2,878
3,619
12,627
12,291 Net income (loss)
(4,589)
7,163
11,639
21,346
Net (income) loss attributable to noncontrolling interests, net of taxes
40
(31)
7
7
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:
Basic
28,202
27,972
28,141
27,839
Diluted
28,202
28,935
29,106
28,685
Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands)
Three months ended May 31, Year ended May 31,
2013 2012 2013 2012
Revenues
Services
$ 102,704
$ 96,300
$ 380,851
$ 349,793
International
38,118
20,672
126,840
59,466
Products and Systems
7,683
13,654
33,301
40,083
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,
2013 2012 2013 2012
Gross profit
Services
$ 26,779
$ 26,412
$ 98,907
$ 94,413
International
8,088
6,843
32,319
19,106
Products and Systems
3,937
5,626
16,947
18,578
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,
2013 2012 2013 2012 EBITDA and Adjusted EBITDA data
Net income (loss) attributable to Mistras Group, Inc. (GAAP)
$ (4,549)
$ 7,132
$ 11,646
$ 21,353
Interest expense
830
1,011
3,288
3,132
Provision for income taxes
2,878
3,619
12,627
12,291
Depreciation and amortization
6,954
6,035
26,647
22,024
EBITDA (non-GAAP)
6,113
17,797
54,208
58,800
Stock compensation expense
1,536
1,306
6,285
5,097
Acquisition-related expense, net
(1,135)
971
(2,141)
1,980
Goodwill impairment
9,938
--
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,
2013 2012 2013 2012 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 impairment
9,938
--
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 impairment
0.35
--
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
Country Websites
Business Websites
Popular Searches
Branch Locator
Oil & Gas
Field Inspections
Sensoria™ Wind Blade Monitoring
Pipelines
MISTRAS Digital®
Traditional Non-Destructive Testing (NDT)
Careers
Events Center
ART Crawler
Aerospace & Defense
Investors
Environmental, Social & Governance (ESG) Initiatives
Equipment
Consulting
Training