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Jun 30, 2024
Mistras Q2 2024 Earnings Report
Reported a revenue increase of 7.8% with significant gross profit and margin growth, alongside reduced SG&A expenses, resulting in a net income of $6.4 million and adjusted EBITDA of $22.1 million.
Key Takeaways
MISTRAS Group reported strong Q2 2024 results with a 7.8% increase in revenue, significant growth in gross profit and adjusted EBITDA, and a reduction in SG&A expenses. Net income reached $6.4 million, and the company is optimistic about achieving one of its all-time high-performance years for adjusted EBITDA in fiscal 2024.
Revenue increased by 7.8% driven by growth across all industries.
Gross profit rose by 12.9% with gross profit margin expanding by 140 basis points.
Net income was reported at $6.4 million, with earnings per diluted share of $0.20.
Adjusted EBITDA increased by 44.6% to $22.1 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company reaffirms the 2024 full year guidance previously provided.
Positive Outlook
- Full year Revenue between $725 and $750 million
- Adjusted EBITDA between $84 and $89 million
- Free cash flow between $34 and $38 million
- The Company’s original Adjusted EBITDA outlook for 2024 anticipated an incremental year over year Gross Profit benefit of $3 million, and SG&A benefit of $12 million due to Project Phoenix initiatives.
- The company will still realize a $15 million aggregate improvement to Adjusted EBITDA in 2024 attributable to these items.
Challenges Ahead
- Based upon the Company’s implementation of Project Phoenix, it has validated this cost savings of $15 million in aggregate.
- This benefit is now revised to be $7 million of Cost of Revenue reduction and $8 million SG&A savings in fiscal 2024.
- However, this change will have no net impact on the Company’s outlook for fiscal 2024 Adjusted EBITDA.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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