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Mar 31, 2021
Matrix Service Q3 2021 Earnings Report
Reported a decrease in revenue due to COVID-19 and weather impacts, resulting in a net loss.
Key Takeaways
Matrix Service Company reported a third quarter revenue of $148.3 million, impacted by COVID-19 and severe weather. The company experienced a net loss of $0.49 per share, with an adjusted loss of $0.43 per share. Despite these challenges, the company maintains a strong balance sheet with $73.8 million in cash and no debt, and anticipates improved results in the coming quarters.
Third quarter revenue was $148.3 million, affected by COVID-19 and weather.
Loss per share was $0.49, adjusted loss per share was $0.43.
Book-to-bill ratio was 0.9 with project awards of $138.0 million and a backlog of $538.3 million.
Company anticipates increasing project awards as the year progresses and is focused on clean energy opportunities.
Matrix Service
Matrix Service
Forward Guidance
The Company expects results to improve as business volumes increase following $60 million of cost reductions achieved over the last year. While certain project awards and starts have certainly been delayed, the company believes the third quarter was the bottom of the cycle and expect the fourth quarter to significantly improve. We expect this improvement to continue as we move into fiscal 2022.
Positive Outlook
- COVID-19 infection rates are declining.
- Bidding opportunities are growing, especially in key strategic areas.
- Balance sheet is strong.
- Leaner organization is in place.
- Increasing focus on clean energy solutions is creating new, significant opportunities.
Challenges Ahead
- Project awards and starts have been delayed.
- Third quarter results were negatively impacted by lower than forecasted volumes.
- Under recovery of construction overhead costs reduced gross margin.
- COVID-19's impact on energy demand has affected market conditions.
- Some customers continue to delay or reduce discretionary maintenance and capital spending.