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Mar 31, 2022
Montrose Q1 2022 Earnings Report
Montrose Environmental Group reported first quarter 2022 results with revenue increase despite COVID-19 revenue decline and operating segments' Adjusted EBITDA margin accretion.
Key Takeaways
Montrose Environmental Group's first quarter 2022 total revenue increased by 0.6% to $134.7 million compared to the prior year, driven by organic growth in Water, Renewable Energy, and GHG measurement services, offsetting a decline in CTEH COVID-19-related revenue. The net loss was $7.5 million, improved from $12.9 million in the prior year. The Total Operating Segments Adjusted EBITDA margin increased to 17.8%.
Total revenue increased by 0.6% to $134.7 million compared to the prior year quarter.
Net loss improved to $7.5 million compared to a net loss of $12.9 million in the prior year quarter.
Total Operating Segments Adjusted EBITDA margin increased to 17.8%, compared to 17.3% in the prior year quarter.
The company reiterates its full year 2022 outlook for revenue to be in the range of $520.0 million to $570.0 million and Adjusted EBITDA to be in the range of $73.0 million to $78.0 million.
Forward Guidance
The Company reiterates its full year 2022 outlook for revenue to be in the range of $520.0 million to $570.0 million and Adjusted EBITDA to be in the range of $73.0 million to $78.0 million. The Company’s 2022 forecast reflects an expectation of organic growth outperformance relative to the Company’s historical average of 7.0% - 9.0% (excluding CTEH). The 2022 forecast also reflects revenue from CTEH to be elevated versus CTEH's expected $75.0 - $95.0 million revenue run-rate.
Positive Outlook
- Strong organic growth in nearly all business lines, excluding CTEH business.
- Successfully integrating the highly additive team from Environmental Standards.
- Optimistic about prospective and accretive acquisitions in our pipeline.
- Expects organic growth outperformance relative to the Company’s historical average of 7.0% - 9.0% (excluding CTEH).
- CTEH revenue to be elevated versus CTEH's expected $75.0 - $95.0 million revenue run-rate.
Challenges Ahead
- CTEH remains elevated due to a continuation of certain COVID-19 pandemic related services which remain difficult to forecast.
- Outlook does not include any benefit from future acquisitions that have not yet been completed.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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