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Sep 30, 2021
Matrix Service Q1 2022 Earnings Report
Reported a loss in the first quarter of fiscal year 2022, but project awards and backlog increased.
Key Takeaways
Matrix Service Company reported a net loss of $17.5 million, or $0.66 per diluted share, for the first quarter of fiscal 2022. However, the company saw a significant increase in project awards, achieving a book-to-bill ratio of 1.6 with project awards of $266.9 million, the highest since Q1 2020. Backlog increased by 21.4% to $561.4 million, and the company maintains a strong balance sheet with no debt and a new $100 million credit facility.
Project awards of $266.9 million resulted in a book-to-bill of 1.6, the highest since Q1 2020.
Backlog increased 21.4% to $561.4 million.
Balance sheet remains strong with no debt; new $100.0 million credit facility.
First quarter revenue was $168.1 million.
Matrix Service
Matrix Service
Forward Guidance
Based on the strengthening market conditions and the first quarter awards, the company expects improving results in the second half of the fiscal year and believes that the award cycle will strengthen as we move into the new calendar year
Positive Outlook
- Strengthening market conditions
- Significant increase in project awards
- Diversified projects such as LNG storage, thermal vacuum chambers, renewable fuels, and electrical infrastructure
- Bidding remains extremely strong across all segments
- Improving backlog trend
Challenges Ahead
- Low gross margin and earnings for all three segments in the quarter
- Disappointing operating performance in the Storage and Terminals Solutions segment
- Increase in the forecasted costs to complete a large capital project in the Utility and Power Infrastructure segment
- Charge related to the collection of amounts owed on a project completed in 2019 that was tied up in litigation
- Unexpected equipment repairs during commissioning that delayed the scheduled completion and increased the estimated costs to complete