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Mar 31, 2020
Mistras Q1 2020 Earnings Report
Mistras Group reported first quarter 2020 results with revenue exceeding forecast and strategic actions implemented to lower costs.
Key Takeaways
Mistras Group's first quarter 2020 revenue reached $159.5 million, exceeding expectations, while cash from operations was $6.1 million. The company faced challenges due to the slowdown in energy markets and the impact of COVID-19, leading to non-cash impairment charges of $106.1 million. Strategic actions were implemented to reduce overhead spending and maintain liquidity.
Revenue of $159.5 million, exceeding forecast.
Cash from operations of $6.1 million.
Credit facility amended to provide covenant flexibility and maintain liquidity.
Selling, general and administrative expenses of $41.6 million, down despite additive acquisition.
Mistras
Mistras
Mistras Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.comProducts and Systems Revenue
CapyFin.com Forward Guidance
Due to ongoing macro concerns related to COVID-19, Mistras Group is not providing full-year 2020 guidance. However, they anticipate Q2 2020 revenues to decrease up to the high 30% range from the prior period, while expecting positive cash from operations and adjusted EBITDA. The company is optimistic about higher consolidated revenue in the second half of 2020 compared to the first half, contingent on macroeconomic improvements.
Positive Outlook
- Cash from operations are expected to remain positive.
- Adjusted EBITDA is expected to remain positive.
- Consolidated revenue in the second half of 2020 will be higher than the first half of 2020
- Improvements in both cash flow in the second half of 2020 compared to the first half of 2020
- Improvements in adjusted EBITDA in the second half of 2020 compared to the first half of 2020
Challenges Ahead
- Ongoing macro concerns attributable to the impact of COVID-19 coronavirus, continue to put crude oil prices under intense pressure.
- Continuing economic uncertainty.
- Revenues for the second quarter of 2020 to decrease up to high 30% from the prior period level.
- Difficult to forecast with any degree of certainty at this time.
- Outlook is contingent on continuing macroeconomic improvements, including stabilization in the crude oil markets and the relaxing of certain stay-in-place mandates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income