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Dec 31, 2019
Mistras Q4 2019 Earnings Report
Mistras Group's Q4 2019 results reflected a slight decrease in revenue and a decrease in gross profit, while free cash flow increased.
Key Takeaways
Mistras Group reported a slight decrease in revenue for Q4 2019, with a corresponding decrease in gross profit. However, the company saw an increase in free cash flow and continued to focus on debt repayment.
Cash flows from operations increased by 6.6% to $18.6 million.
Free cash flow increased by 12.9% to $13.7 million.
Debt repayment was $13.1 million.
SG&A expenses decreased by $0.9 million to $42.6 million.
Revenue by Segment
Forward Guidance
Due to the weakening Oil and Gas market entering Q4 2019, which was believed would continue into the first quarter of 2020. Additional macro concerns have since surfaced, most prominently the impact of COVID-19 coronavirus (“COVID-19”), while crude oil prices remain under intense pressure, the Company will not provide full year guidance.
Challenges Ahead
- Company experienced a weakening Oil and Gas market coming into the fourth quarter of 2019
- The Company anticipates fiscal 2020 results to follow this historical pattern.
- Low crude prices further impacting the first quarter of 2020.
- COVID-19 are further impacting the first quarter of 2020.
- The Company expects revenue for first quarter of 2020 to be down sequentially from the fourth quarter of 2019 as well as from the first quarter of last year, by approximately mid-teens percentage.
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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