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Jun 30, 2022
Montrose Q2 2022 Earnings Report
Increased revenue with continued organic revenue growth and improved operating cash flow.
Key Takeaways
Montrose Environmental Group reported a revenue increase of 2.7% to $139.9 million in Q2 2022 compared to $136.2 million in the prior year quarter. The increase was primarily driven by organic growth in the Measurement and Analysis and Remediation and Reuse segments, partially offset by lower COVID-19-related services provided by CTEH.
Revenue increased to $139.9 million with continued organic revenue growth.
Operating cash flow increased by $18.1 million over the prior year.
The company reiterates its full year 2022 outlook.
Adjusted Net Income was $5.4 million, and Adjusted Net Income per Share was $0.04.
Forward Guidance
The Company expects revenue to be in the range of $520.0 million to $570.0 million. Consolidated Adjusted EBITDA, under the revised methodology, is expected to be in the range of $68.0 million to $73.0 million for the full year 2022, inclusive of $5.0 million of start-up losses, which is consistent with the Company’s outlook originally provided on February 28, 2022.
Positive Outlook
- Expects revenue to be in the range of $520.0 million to $570.0 million.
- Consolidated Adjusted EBITDA is expected to be in the range of $68.0 million to $73.0 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.
- CTEH remains elevated due to a continuation of certain COVID-19 pandemic related services which remain difficult to forecast.
Challenges Ahead
- The outlook does not include any benefit from future acquisitions that have not yet been completed.
- The inherent variability in our CTEH response business and the timing of select larger project awards which are ongoing and expanding in scope remain hard to predict and may impact results.
Historical Earnings Impact
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