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Dec 31, 2019
Matrix Service Q2 2020 Earnings Report
Reported a net loss, impacted by non-cash charges and strategic changes.
Key Takeaways
Matrix Service Company reported a decrease in revenue for the second quarter of fiscal year 2020, with a net loss of $28.0 million, or $1.04 per fully diluted share. Adjusted earnings per diluted share, excluding non-cash charges, were $0.19. The company is implementing strategic changes to improve operating performance.
Second quarter revenue was $318.7 million compared to $340.6 million in the same quarter of the prior fiscal year
Storage Solutions segment had strong quarterly results with revenue of $142.8 million and gross margin of 13.9%
Second quarter loss of $1.04 per share, including non-cash charges of $1.23 per share, compared to earnings per diluted share of $0.14 in the same quarter of the prior fiscal year
Adjusted earnings per diluted share, which excludes the non-cash charges, were $0.19 for the second quarter
Matrix Service
Matrix Service
Matrix Service Revenue by Segment
Revenue by Segment
Storage and Terminal Solutions Revenue
CapyFin.com Forward Guidance
Matrix Service Company updated its fiscal 2020 guidance, expecting revenue between $1.2 billion and $1.3 billion, and a loss per diluted share of between $0.45 and $0.65. Adjusted diluted earnings per share are expected to be between $0.70 and $0.90.
Positive Outlook
- Positive outlook in the Oil Gas & Chemical segment
- Positive outlook in the Storage Solutions segments
- Business improvement plan in the Electrical Infrastructure segment
- Reduction in resources in the Industrial segment
Challenges Ahead
- Performance of the Electrical Infrastructure segment
- Lower projected volumes in the Industrial segment
- Decision to reduce resources in the iron and steel business
- Expected restructuring costs of $4 to $6 million primarily in the third quarter of fiscal 2020