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Jun 30, 2021
Matrix Service Q4 2021 Earnings Report
Financial results for the fourth quarter and year ended June 30, 2021 were reported.
Key Takeaways
Matrix Service Company reported an 18% increase in fourth-quarter revenue to $174.9 million compared to the third quarter. Project awards totaled $99.1 million, resulting in a backlog of $462.6 million. The company experienced a net loss of $10.7 million, or $0.40 per share, due to additional costs on a large capital project and a settlement of a long-term dispute.
Fourth quarter revenue increased 18% to $174.9 million compared to the third quarter.
Project awards in the quarter totaled $99.1 million, resulting in a backlog of $462.6 million.
The balance sheet is strong with no outstanding debt and cash of $83.9 million.
A net loss of $10.7 million, or $0.40 per share, was recognized due to project costs and dispute settlement.
Matrix Service
Matrix Service
Forward Guidance
Award activity in the first quarter of fiscal 2022 has accelerated, and the company expects increasing awards and improving backlog as it moves through the fiscal year.
Positive Outlook
- Award activity in the first quarter of fiscal 2022 has accelerated.
- The company expects increasing awards.
- The company expects improving backlog.
- Small- to mid-size project award activity is increasing across all segments.
- The company expects to benefit from increased investment across the clean energy markets.
Challenges Ahead
- The COVID-19 pandemic and the resulting disruption to the energy and industrial markets continued to negatively impact the timing of project awards and our financial results.
- At this current revenue volume, overhead costs were not fully leveraged.
- The fourth quarter included additional costs on a large capital project in the Utility and Power Infrastructure segment.
- A long-term dispute with a customer related to a crude terminal was settled, resulting in a reduction to gross margin.
- The expected outcome on the large capital project resulted in a gross profit reduction of $6.6 million.