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Sep 30, 2020
Matrix Service Q1 2021 Earnings Report
Reported first quarter 2021 results, showing a decrease in revenue and a loss per share due to the impact of the global pandemic and market disruptions.
Key Takeaways
Matrix Service Company reported a decrease in revenue to $182.8 million for the first quarter of fiscal 2021, resulting in a loss per diluted share of $0.12. The results were impacted by the global pandemic and related market disruptions. Despite strong project execution, lower than expected revenue volume led to under recovery of construction overhead costs, significantly impacting gross margins. The company's backlog at the end of the quarter was $678.4 million, with project awards of $102.7 million for the quarter. Liquidity stood at $133.9 million, including cash of $82.2 million.
First quarter revenue was $182.8 million, resulting in a loss per diluted share of $0.12 due to the continued impact of the global pandemic and related market disruptions.
Strong project execution was offset by lower than expected revenue volume, which resulted in under recovery of construction overhead costs, significantly impacting gross margins.
SG&A was $18.1 million in the quarter after realization of planned cost reductions.
Backlog at the end of the quarter was $678.4 million with project awards of $102.7 million for the quarter.
Matrix Service
Matrix Service
Forward Guidance
The company expects that bookings and revenue will improve as they move into the second half of this fiscal year. This improvement in business conditions, combined with their restructuring and continuing cost reduction efforts position them to deliver better financial results. They remain focused on safety, winning work, and executing our backlog. They will keep a strong balance sheet through controlling costs, minimizing capital expenditures, managing cash flow, and maintaining minimal or no debt.
Positive Outlook
- Bidding opportunities are improving.
- Project opportunity funnel is returning to normal.
- Bookings and revenue will improve as we move into the second half of this fiscal year.
- Restructuring and continuing cost reduction efforts position us to deliver better financial results.
- Focused on safety, winning work, and executing our backlog.
Challenges Ahead
- The pandemic has continued to impact many of our clients, especially those in the energy industry.
- Clients are managing through low product demand and rigid health and safety protocols.
- Political uncertainty has resulted in delayed and reduced spending priorities.
- Client decision making in this environment may affect the timing of awards and starts.
- Short-term impact to the Company's refinery turnaround and maintenance operations as a result of the global pandemic continues to be significant.