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Mistras
🇺🇸 NYSE:MG
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Jun 30, 2021

Mistras Q2 2021 Earnings Report

Revenue increased by 42.8% and net income reported at $5.9 million.

Key Takeaways

MISTRAS Group reported strong second-quarter results with significant top and bottom-line growth, driven by a rebound in the oil and gas market. Revenue increased by 42.8% to $177.7 million, and adjusted EBITDA rose by 96.5% to $22.6 million.

Revenue increased by 42.8% to $177.7 million.

Gross profit increased by 34.4% to $55.3 million.

Adjusted EBITDA increased by 96.5% to $22.6 million.

Net income was reported at $5.9 million, with diluted EPS of $0.20.

Total Revenue
$178M
Previous year: $124M
+42.8%
EPS
$0.22
Previous year: -$0.06
-466.7%
Gross Profit
$55.3M
Previous year: $41.2M
+34.4%
Cash and Equivalents
$19.9M
Previous year: $22.6M
-11.7%
Free Cash Flow
$8.53M
Previous year: $25.5M
-66.6%
Total Assets
$587M

Mistras

Mistras

Mistras Revenue by Segment

Forward Guidance

The Company expects revenue to increase in the low-to-mid teens percentage in the third quarter of 2021 over the prior year quarter. Adjusted EBITDA is expected to be higher in the third quarter of 2021 than the prior year period, but lower sequentially than the second quarter of 2021.

Positive Outlook

  • Energy prices and demand are currently stable.
  • Company expects revenue to increase in the low-to-mid teens percentage in the third quarter of 2021 over the prior year quarter.
  • Adjusted EBITDA is expected to be higher in the third quarter of 2021 than the prior year period.
  • Revised credit agreement will reduce annual interest expense by almost $6 million per year commencing in the third quarter.
  • Company is well positioned to consistently drive improvements across the organization and to capitalize on the increasing demand.

Challenges Ahead

  • Ongoing COVID-19 pandemic continues to significantly impact the Company’s second largest market, Aerospace.
  • Adjusted EBITDA is expected to be lower sequentially than the second quarter of 2021, due to substantially all of the remaining temporary cost reductions from 2020 being restored during the third quarter of 2021.
  • Continuing stabilization in crude oil markets is needed.
  • A timely and effective COVID-19 vaccination rollout in 2021 is needed.
  • No new or increased stay-in-place mandates resulting from an increased spread of COVID-19 variants, which would impact the Company’s ability to work as a critical service provider are needed.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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