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Dec 31, 2020
Matrix Service Q2 2021 Earnings Report
Reported a decrease in revenue due to the impact of COVID-19, but generated positive cash flow and reduced costs.
Key Takeaways
Matrix Service Company reported a decrease in revenue for Q2 2021, impacted by COVID-19 and related market disruptions. However, the company generated positive cash flow from operations, fully repaid outstanding debt, and achieved significant cost savings. They are optimistic about increasing project awards in the second half of the fiscal year and are diversifying into cleaner energy markets.
Generated $20.8 million cash flow from operations and repaid outstanding debt.
Revenue was $167.5 million, impacted by the pandemic.
Loss per share was $0.17, adjusted loss per share was $0.03.
Achieved $60 million in annualized cost savings.
Forward Guidance
The company expects improvement in the second half of the fiscal year with robust bidding opportunities, especially in strategic areas including small to mid-size LNG facilities, electrical infrastructure, thermal vacuum chambers, rare earth metals and minerals, and hydrogen. They anticipate priorities of the new presidential administration will lead to increased opportunities.
Positive Outlook
- Expect improvement as we move through the second half of the fiscal year.
- Bidding opportunities are robust, especially in key strategic areas.
- Strong demand for thermal vacuum chambers.
- Increasing opportunities in mining and minerals and chemicals.
- Priorities of the new presidential administration will lead to increased opportunities in the Utility and Power Infrastructure segment.
Challenges Ahead
- Continued impact of COVID-19 on end markets.
- Client business uncertainty.
- Additional safety protocols implemented to protect employee health.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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