Loading...
•
Sep 30, 2023
Matrix Service Q1 2024 Earnings Report
Reported first quarter fiscal 2024 results.
Key Takeaways
Matrix Service Company reported a strong start to fiscal 2024 with project awards reaching $497.4 million, the highest in five years, leading to a book-to-bill ratio of 2.5 and a backlog increase of 126% to $1.4 billion. Revenue for the quarter was $197.7 million, and the company experienced a net loss of $3.2 million, or $0.12 per share.
Project awards in the quarter reached $497.4 million, the highest in five years, resulting in a book-to-bill ratio of 2.5.
Backlog increased by 126% to $1.4 billion compared to the same period a year ago, marking the highest backlog level since June 30, 2015.
Revenue for the first quarter of fiscal 2024 was $197.7 million.
The company had a net loss of $3.2 million, or $0.12 per share, for the first quarter of fiscal 2024.
Matrix Service
Matrix Service
Forward Guidance
Revenue is expected to improve in the second half of the fiscal year as a result of recent awards and consolidated basis, we expect to achieve full recovery of construction overhead costs on higher revenue volumes in the second half of fiscal 2024.
Positive Outlook
- Revenue is expected to improve in the second half of the fiscal year as a result of recent awards.
- Expect to reach full recovery of construction overhead costs in the second half of fiscal 2024 in Storage and Terminals Solutions segment.
- LNG peak shaving work added to backlog over the past year is expected to positively impact revenue in Utility and Power Infrastructure segment beginning in the second quarter of fiscal 2024.
- Expect the effective tax rate to be around zero throughout fiscal 2024.
- Given strong cash position, in November 2023, repaid all outstanding borrowings under the credit facility.
Challenges Ahead
- Gross margins in the first quarter of fiscal 2024 were negatively impacted by the under-recovery of construction overhead costs.
- Utility and Power Infrastructure segment revenue was down due to lower volumes of power delivery work during the summer months.
- Process and Industrial Facilities segment revenue decreased primarily due to completion of certain gas processing work, lower refinery volumes during the summer months, and the sale of a non-core business during fourth quarter of fiscal 2023.
- First quarter gross margin of Process and Industrial Facilities segment was negatively impacted by low revenue volumes, which led to the under-recovery of construction overhead costs.
- Accrued an additional $1.6 million of expense associated with the variable accounting for cash-settled stock-based compensation, which increased due to a higher stock price.