Content Detail

• Content META

  Title	MISTRAS Announces Third Quarter 2024 Results
  ID	3757648
  External ID	200100711
  Author
  Published Date	Oct. 30, 2024, 3:01 p.m.
  Summary	MISTRAS Announces Third Quarter 2024 Results MISTRAS Group, Inc. MISTRAS Group, Inc. Wed, Oct 30, 2024, 4:01 PM 24 min read In This Article: MG -1.51% Quarterly Revenue Growth of 1.9%, driven by conti
  Tags	press-release
  URL	No URL
  Sentiment	Negative: 0.01508    Neutral: 0.03556    Positive: 0.94936
  Relevance	0.03620

• Content Details

  Content ID	2035129
  Key	7ae38086-d386-49b4-af5a-e80740854812
  Content	MISTRAS Announces Third Quarter 2024 Results MISTRAS Group, Inc. MISTRAS Group, Inc. Wed, Oct 30, 2024, 4:01 PM 24 min read In This Article: MG -1.51% Quarterly Revenue Growth of 1.9%, driven by continued strong growth in the International segment Quarterly Net Income of $6.4 million, or $0.20 per diluted share Quarterly Adjusted EBITDA (non-GAAP) of $23.3 million, an increase of 11.5% PRINCETON JUNCTION, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (MG: NYSE), a leading "one source" multinational provider of integrated technology-enabled asset protection solutions, reported financial results for its third quarter and nine months ended September 30, 2024. Highlights of the Third Quarter 2024* Revenue of $182.7 million, a 1.9% increase Gross profit expanded to $54.6 million, with gross profit margin of 29.9% Net income of $6.4 million and Earnings Per Diluted Share of $0.20 Adjusted EBITDA up 11.5% to $23.3 million Highlights of the Year-to-Date 2024* Revenue of $556.9 million, a 6.4% increase Gross profit increased 7.7% to $161.8 million, with gross profit margin of 29.1%, a 40 basis point expansion Net income of $13.8 million and Earnings Per Diluted Share of $0.44 Adjusted EBITDA up 32.1% to $61.6 million * All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP financial measures set forth in tables attached to this press release. Manny Stamatakis, Interim Chief Executive Officer commented “the Company’s third quarter results were in line with our expectations, with the bottom line growing significantly faster than the top line, once again demonstrating the margin accretive actions and significant operating leverage improvements that we have instituted into our business model. Revenue was up nearly 2% during the quarter, led by growth in the International Segment, along with revenue growth in the North America segment’s Aerospace and Defense, Industrials and Power Generation & Transmission industries. The Company’s Oil and Gas Downstream revenue decreased during the third quarter as we had anticipated, due to a relatively moderate Fall turn around season compared to a more robust Spring turn around season. Adjusted EBITDA was up over 11% compared to the prior year period, reflecting significant improvement in our operating leverage. I am also pleased with our third consecutive quarter generating Net Income, which is a function of continued revenue growth, gross profit expansion, and selling, general and administrative expenses (“SG&A”) reductions. Story Continues Mr. Stamatakis continued, “I am encouraged with the progress being achieved by the collaboration between our Commercial and Operations functions, which is resulting in the successful renewal of long-term agreements with a number of our largest customers. Our continued cost discipline, strategic partnerships with our valuable portfolio of clients, and the Company’s long-term vision have us excited for the prospect of continued profitable growth for Mistras.” Edward Prajzner, Senior Executive Vice President and Chief Financial Officer, commented, “due to our improved results and operating leverage, we generated $19.4 million of operating cash flow and $13.2 million of free cash flow during the third quarter. We used this cash flow to pay down a significant amount of first half 2024 borrowings during the third quarter, and our gross debt is the lowest level it has been since the acquisition of Onstream in December of 2018. We are funding our organic growth initiatives with operating cash flow, which significantly improved in the third quarter.” For the third quarter of 2024, consolidated revenue was $182.7 million, a 1.9% increase. Revenue growth in the quarter was led by strong growth in the International segment of 8.7%. On a consolidated basis, revenue expanded by 9.1% in the Aerospace and Defense industry, 17.2% in the Industrials industry, and 19.7% in the Power Generation & Transmission industry. As anticipated, Oil & Gas revenue was down 3.6% in the quarter as a result of the expected moderate Fall turnaround season. Third quarter 2024 gross profit increased 0.4% to $54.6 million, with gross profit margin contracting 40 basis points. The decrease in gross profit margin to 29.9% was primarily due to higher healthcare claims expense in the third quarter, which was partially offset by continued strong growth in our higher margin Aerospace and Defense industry. SG&A in the third quarter of 2024 was $38.9 million, down 1.7% compared to $39.5 million in the third quarter of 2023 and also down 5.1% sequentially from the second quarter of 2024, as a result of the ongoing cost containment activities. SG&A for the nine months ended September 30, 2024, was down 2.3% compared to the prior year period. The Company reported net income of $6.4 million, or $0.20 per diluted share in the third quarter of 2024, as compared to a net loss of $10.3 million, or $0.34 per diluted share in the prior year period. Third quarter net income excluding special items (non-GAAP) was $6.3 million or $0.20 per diluted share excluding special items (non-GAAP) as compared to $5.6 million of net income excluding special items or $0.18 per diluted share excluding special items in the prior year period. Adjusted EBITDA was $23.3 million in the third quarter of 2024 compared to $20.9 million in the prior year period, an increase of 11.5%. Adjusted EBITDA for the nine months ended September 30, 2024 was $61.6 million compared to $46.6 million in the prior year period, an increase of 32.1% primarily attributable to a more favorable sales mix and overhead cost containment. Performance by certain segments during the third quarter was as follows: North America segment third quarter 2024 revenue was $149.8 million, up 0.7% from $148.8 million in the prior year period. The revenue increase was primarily due to strong revenue growth of 13.6% achieved in the Aerospace and Defense industry which was partially offset by the aforementioned contraction in Oil & Gas revenue due to timing of turn arounds. For the third quarter of 2024, gross profit was $42.5 million, compared to $44.8 million in the prior year period. Gross profit margin was 28.4% for the third quarter of 2024, a 170-basis point decrease from 30.1% in the prior year period. This decrease in gross profit margin was primarily due to higher healthcare claims expense. International segment third quarter 2024 revenue was $33.7 million, up 8.7% from $31.0 million in the prior year period. This revenue growth was primarily due to a 86.4% increase in Power Generation & Transmission and a   36.2% increase in Other Process Industries in addition to a 2.4% increase in Oil & Gas, which was partially offset by a decrease of 2.0% in Aerospace and Defense industry revenue. International segment third quarter 2024 gross profit grew by 19.5% to $10.1 million, with gross profit margin of 30.1%, compared to 27.4% in the prior year period, a 270-basis point increase, primarily attributable to improved operating leverage and sales mix. Cash Flow and Balance Sheet The Company’s net cash provided by operating activities was $24.5 million for the first nine months of 2024, compared to $10.7 million in the prior year period. Free cash flow, a non-GAAP financial measure, was $6.3 million for the first nine months of 2024, compared to negative $5.6 million in the prior year period. This increase was primarily attributable to significantly improved financial results in 2024 and improvements in working capital, primarily accounts receivable, experienced in the third quarter of 2024. Capital expenditures increased by $1.9 million in the first nine months of 2024 compared to the prior year period as the Company is continuing to invest in growth opportunities including other internal automations, workflow, and productivity enhancements. The Company’s gross debt was $189.7 million as of September 30, 2024, compared to $190.4 million as of December 31, 2023, and $199.7 million as of June 30, 2024. The decrease in gross debt during the period was attributable to the favorable cash flow impacts described above. The Company’s net debt, a non-GAAP financial measure, was $169.3 million as of September 30, 2024, compared to $172.8 million as of December 31, 2023. 2024 Outlook The Company has revised its guidance ranges for the full year 2024 as follows: Full year Revenue is expected to be between $725 and $730 million (from $725-$750 million previously) Adjusted EBITDA is expected to be between $80 and $82 million (from $84-$89 million previously) Free cash flow is expected to be between $18 and $22 million ( from $34-$38 million previously) These changes were attributable to current market conditions, project pushouts and an unanticipated buildup of accounts receivable. Preliminary 2025 Outlook Given the expected growth in the Company’s higher margin businesses and continued operating leverage improvements, the Company anticipates a meaningful improvement in its net income, with a low double-digit expansion in Adjusted EBITDA and a low single-digit organic revenue growth for fiscal 2025. Conference Call In connection with this release, MISTRAS will hold a conference call on October 31, 2024, at 9:00 a.m. (Eastern). To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website at www.mistrasgroup.com Note there is a new process to participate in the live question and answer session. Individuals wishing to participate may preregister at: https://register.vevent.com/register/BIf848f0928520406c928ea91abde4515a Upon registering, a dial-in number and unique PIN will be provided to join the conference call. Following the conference call, an archived webcast of the event will be available for one year by visiting the Investor Relations section of MISTRAS Group’s website. About MISTRAS Group, Inc. - One Source for Asset Protection Solutions® MISTRAS Group, Inc. (NYSE: MG) is a leading "one source" multinational provider of integrated technology-enabled asset protection solutions, helping to maximize the safety and operational uptime for civilization’s most critical industrial and civil assets. Backed by an innovative, data-driven asset protection portfolio, proprietary technologies, strong commitment to Environmental, Social, and Governance (ESG) initiatives, and a decades-long legacy of industry leadership, MISTRAS leads clients in the oil and gas, aerospace and defense, renewable and nonrenewable power, civil infrastructure, and manufacturing industries towards achieving operational and environmental excellence. By supporting these organizations that help fuel our vehicles and power our society; inspecting components that are trusted for commercial, defense, and space craft; building real-time monitoring equipment to enable safe travel across bridges; and helping to propel sustainability, MISTRAS helps the world at large. MISTRAS enhances value for its clients by integrating asset protection throughout supply chains and centralizing integrity data through a suite of Industrial IoT-connected digital software and monitoring solutions. The company’s core capabilities also include non-destructive testing field and in-line inspections enhanced by advanced robotics, laboratory quality control and assurance testing, sensing technologies and NDT equipment, asset and mechanical integrity engineering services, and light mechanical maintenance and access services. For more information about how MISTRAS helps protect civilization’s critical infrastructure and the environment, visit https://www.mistrasgroup.com/. MEDIA CONTACT: Nestor S. Makarigakis Group Vice-President of Marketing and Communications +1 (609) 716-4000 | marcom@mistrasgroup.com Forward-Looking and Cautionary Statements Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our 2024 outlook and preliminary 2025 outlook, guidance, costs savings and other benefits we expect to realize from our previously announced Project Phoenix initiatives and additional operational and strategic actions that we expect or seek to take in furtherance of our strategies and activities to enhance our financial results and future growth. Such forward-looking statements relate to MISTRAS' financial results and estimates, products and services, business model, Project Phoenix initiatives, operational and strategic initiatives to improve operating leverage, strategy, growth opportunities, profitability and competitive position, and other matters. These forward-looking statements generally use words such as "future," "possible," "potential," "targeted," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," "project," "will," "may," "should," "could," "would" and other similar words and phrases. Such statements are not guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. A list, description and discussion of these and other risks and uncertainties can be found in the "Risk Factors" section of the Company's 2023 Annual Report on Form 10-K filed on March 11, 2024, as updated by our reports on Form 10-Q and Form 8-K. The forward-looking statements are made as of the date hereof, and MISTRAS undertakes no obligation to update such statements as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures In addition to financial information prepared in accordance with generally accepted accounting principles in the U.S. (GAAP), this press release also contains adjusted financial measures that are not prepared in accordance with GAAP and that we believe provide investors and management with supplemental information relating to the Company’s operating performance and trends that facilitate comparisons between periods and with respect to trends and projected information. The term "Adjusted EBITDA" used in this release is a financial measure not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, certain acquisition related costs (including transaction due diligence costs and adjustments to the fair value of contingent consideration), foreign exchange (gain) loss, non-cash impairment charges, reorganization and other costs and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the term “free cash flow”, a non-GAAP financial measure the Company defines as cash provided by operating activities less capital expenditures (which is classified as an investing activity). The Company additionally uses the terms:   “Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP)”, “Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measure. This press release also includes the term “net debt”, a non-GAAP financial measure which the Company defines as the sum of the current and long-term portions of long term debt, less cash and cash equivalents. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are also set forth in tables attached to this press release. Each of these non-GAAP financial measures has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measures derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measures used in this press release may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly-titled measures used by other companies. Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data) September 30, 2024 December 31, 2023 ASSETS (unaudited) Current Assets Cash and cash equivalents $ 20,360 $ 17,646 Accounts receivable, net 144,104 132,847 Inventories 14,510 15,283 Prepaid expenses and other current assets 14,353 14,580 Total current assets 193,327 180,356 Property, plant and equipment, net 79,852 80,972 Intangible assets, net 41,504 43,994 Goodwill 185,872 187,354 Deferred income taxes 5,641 2,316 Other assets 45,485 39,784 Total assets $ 551,681 $ 534,776 LIABILITIES AND EQUITY Current Liabilities Accounts payable $ 13,272 $ 17,032 Accrued expenses and other current liabilities 85,623 84,331 Current portion of long-term debt 10,711 8,900 Current portion of finance lease obligations 4,594 5,159 Income taxes payable 964 1,101 Total current liabilities 115,164 116,523 Long-term debt, net of current portion 178,989 181,499 Obligations under finance leases, net of current portion 11,154 11,261 Deferred income taxes 3,781 2,552 Other long-term liabilities 37,050 32,438 Total liabilities 346,138 344,273 Equity Preferred stock, 10,000,000 shares authorized — — Common stock, $0.01 par value, 200,000,000 shares authorized, 31,006,864 and 30,597,633 shares issued and outstanding 385 305 Additional paid-in capital 250,016 247,165 Accumulated deficit (15,177 ) (28,942 ) Accumulated other comprehensive loss (30,020 ) (28,336 ) Total Mistras Group, Inc. stockholders’ equity 205,204 190,192 Non-controlling interests 339 311 Total equity 205,543 190,503 Total liabilities and equity $ 551,681 $ 534,776 Mistras Group, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 182,694 $ 179,354 $ 556,909 $ 523,399 Cost of revenue 122,392 118,812 377,570 355,304 Depreciation 5,725 6,160 17,556 17,914 Gross profit 54,577 54,382 161,783 150,181 Selling, general and administrative expenses 38,872 39,537 121,018 123,844 Reorganization and other costs 2,143 2,702 4,218 6,017 Goodwill impairment charges — 13,799 — 13,799 Legal settlement and insurance recoveries, net (868 ) — (808 ) 150 Research and engineering 241 438 816 1,428 Depreciation and amortization 2,331 2,588 7,170 7,556 Acquisition-related expense, net — — 1 5 Income (loss) from operations 11,858 (4,682 ) 29,368 (2,618 ) Other income (1,479 ) — (1,479 ) — Interest expense 4,303 4,167 13,145 12,093 Income (loss) before provision (benefit) for income taxes 9,034 (8,849 ) 17,702 (14,711 ) Provision for income taxes 2,618 1,489 3,909 229 Net Income (Loss) 6,416 (10,338 ) 13,793 (14,940 ) Less: net income (loss) attributable to noncontrolling interests, net of taxes 15 (40 ) 28 7 Net Income (Loss) attributable to Mistras Group, Inc. $ 6,401 $ (10,298 ) $ 13,765 $ (14,947 ) Earnings (loss) per common share: Basic $ 0.21 $ (0.34 ) $ 0.45 $ (0.49 ) Diluted $ 0.20 $ (0.34 ) $ 0.44 $ (0.49 ) Weighted-average common shares outstanding: Basic 31,002 30,402 30,895 30,277 Diluted 31,660 30,402 31,513 30,277 Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues North America $ 149,845 $ 148,814 $ 456,588 $ 431,295 International 33,662 30,980 100,972 90,664 Products and Systems 3,276 2,829 9,860 9,897 Corporate and eliminations (4,089 ) (3,269 ) (10,511 ) (8,457 ) $ 182,694 $ 179,354 $ 556,909 $ 523,399 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Gross profit North America $ 42,487 $ 44,773 $ 126,813 $ 121,088 International 10,139 8,481 29,667 24,247 Products and Systems 1,933 1,096 5,233 4,773 Corporate and eliminations 18 32 70 73 $ 54,577 $ 54,382 $ 161,783 $ 150,181 Mistras Group, Inc. and Subsidiaries Unaudited Revenues by Category (in thousands) Revenue by industry was as follows: Three Months Ended September 30, 2024 North America International Products Corp/Elim Total Oil & Gas $ 90,460 $ 9,040 $ 3 $ — $ 99,503 Aerospace & Defense 16,181 5,663 42 — 21,886 Industrials 12,285 6,749 478 — 19,512 Power Generation & Transmission 8,029 3,081 544 — 11,654 Other Process Industries 7,836 3,900 79 — 11,815 Infrastructure, Research & Engineering 5,189 2,744 797 — 8,730 Petrochemical 3,806 198 — — 4,004 Other 6,059 2,287 1,333 (4,089 ) 5,590 Total $ 149,845 $ 33,662 $ 3,276 $ (4,089 ) $ 182,694 Three Months Ended September 30, 2023 North America International Products Corp/Elim Total Oil & Gas $ 94,390 $ 8,827 $ 35 $ — $ 103,252 Aerospace & Defense 14,240 5,778 47 — 20,065 Industrials 10,325 6,018 310 — 16,653 Power Generation & Transmission 7,388 1,653 696 — 9,737 Other Process Industries 6,933 2,864 (5 ) — 9,792 Infrastructure, Research & Engineering 6,042 2,383 1,070 — 9,495 Petrochemical 3,313 586 — — 3,899 Other 6,183 2,871 676 (3,269 ) 6,461 Total $ 148,814 $ 30,980 $ 2,829 $ (3,269 ) $ 179,354 Nine Months Ended September 30, 2024 North America International Products Corp/Elim Total Oil & Gas $ 289,843 $ 31,841 $ 240 $ — $ 321,924 Aerospace & Defense 48,152 18,092 100 — 66,344 Industrials 33,047 18,480 1,478 — 53,005 Power Generation & Transmission 18,953 6,017 1,569 — 26,539 Other Process Industries 26,132 12,337 155 — 38,624 Infrastructure, Research & Engineering 14,286 7,762 1,901 — 23,949 Petrochemical 11,467 900 — — 12,367 Other 14,708 5,543 4,417 (10,511 ) 14,157 Total $ 456,588 $ 100,972 $ 9,860 $ (10,511 ) $ 556,909 Nine Months Ended September 30, 2023 North America International Products Corp/Elim Total Oil & Gas $ 281,663 $ 26,291 $ 87 $ — $ 308,041 Aerospace & Defense 41,516 15,894 275 — 57,685 Industrials 30,693 18,274 1,336 — 50,303 Power Generation & Transmission 17,834 4,840 3,189 — 25,863 Other Process Industries 24,906 10,567 73 — 35,546 Infrastructure, Research & Engineering 12,696 6,547 2,759 — 22,002 Petrochemical 10,027 887 — — 10,914 Other 11,960 7,364 2,178 (8,457 ) 13,045 Total $ 431,295 $ 90,664 $ 9,897 $ (8,457 ) $ 523,399 Oil & Gas Revenue by sub-category was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Oil and Gas Revenue by sub-category Upstream $ 43,835 $ 38,041 $ 127,951 $ 116,941 Midstream 21,545 26,215 68,229 74,739 Downstream 34,123 38,996 125,744 116,361 Total $ 99,503 $ 103,252 $ 321,924 $ 308,041 Consolidated Revenue by type was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Field Services $ 127,246 $ 122,717 $ 388,129 $ 348,501 Shop Laboratories 15,014 14,840 49,147 42,216 Data Analytical Solutions 17,876 17,997 51,757 52,916 Other 22,558 23,800 67,876 79,766 Total $ 182,694 $ 179,354 $ 556,909 $ 523,399 Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) before Special Items (non-GAAP) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 North America: Income from operations (GAAP) $ 17,455 $ 18,004 $ 49,742 $ 39,719 Reorganization and other costs 835 35 927 574 Legal settlement and insurance recoveries, net (868 ) — (808 ) 150 Income from operations before special items (non-GAAP) $ 17,422 $ 18,039 $ 49,861 $ 40,443 International: Income (loss) from operations (GAAP) $ 1,778 $ (12,970 ) $ 4,548 $ (13,031 ) Goodwill Impairment charges — 13,799 — 13,799 Reorganization and other costs, net 147 33 410 228 Income from operations before special items (non-GAAP) $ 1,925 $ 862 $ 4,958 $ 996 Products and Systems: Income (loss) from operations (GAAP) $ 670 $ (557 ) $ 1,479 $ (78 ) Reorganization and other costs 182 189 184 189 Income (loss) from operations before special items (non-GAAP) $ 852 $ (368 ) $ 1,663 $ 111 Corporate and Eliminations: Loss from operations (GAAP) $ (8,045 ) $ (9,159 ) $ (26,401 ) $ (29,228 ) Reorganization and other costs 979 2,445 2,697 5,026 Acquisition-related expense, net — — 1 5 Loss from operations before special items (non-GAAP) $ (7,066 ) $ (6,714 ) $ (23,703 ) $ (24,197 ) Total Company: Income (loss) from operations (GAAP) $ 11,858 $ (4,682 ) $ 29,368 $ (2,618 ) Goodwill Impairment charges — 13,799 — 13,799 Reorganization and other costs 2,143 2,702 4,218 6,017 Legal settlement and insurance recoveries, net (868 ) — (808 ) 150 Acquisition-related expense, net — — 1 5 Income from operations before special items (non-GAAP) $ 13,133 $ 11,819 $ 32,779 $ 17,353 Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Gross Debt (GAAP) to Net Debt (non-GAAP) (in thousands) September 30, 2024 December 31, 2023 Current portion of long-term debt $ 10,711 $ 8,900 Long-term debt, net of current portion 178,989 181,499 Total Gross Debt (GAAP) 189,700 190,399 Less: Cash and cash equivalents (20,360 ) (17,646 ) Total Net Debt (non-GAAP) $ 169,340 $ 172,753 Mistras Group, Inc. and Subsidiaries Unaudited Summary Cash Flow Information (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net cash provided by (used in): Operating activities $ 19,356 $ (7,637 ) $ 24,471 $ 10,684 Investing activities (5,935 ) (5,359 ) (17,152 ) (15,170 ) Financing activities (11,508 ) 9,348 (6,247 ) (1,839 ) Effect of exchange rate changes on cash 1,270 (1,599 ) 1,642 (1,411 ) Net change in cash and cash equivalents $ 3,183 $ (5,247 ) $ 2,714 $ (7,736 ) Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net cash provided by operating activities (GAAP) $ 19,356 $ (7,637 ) $ 24,471 $ 10,684 Less: Purchases of property, plant and equipment (4,716 ) (4,602 ) (14,315 ) (14,403 ) Purchases of intangible assets (1,428 ) (1,046 ) (3,832 ) (1,868 ) Free cash flow (non-GAAP) $ 13,212 $ (13,285 ) $ 6,324 $ (5,587 ) Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net Income (loss) (GAAP) $ 6,416 $ (10,338 ) $ 13,793 $ (14,940 ) Less: Net income attributable to non-controlling interests, net of taxes 15 (40 ) 28 7 Net Income (loss) attributable to Mistras Group, Inc. $ 6,401 $ (10,298 ) $ 13,765 $ (14,947 ) Interest expense 4,303 4,167 13,145 12,093 Provision for income taxes 2,618 1,489 3,909 229 Depreciation and amortization 8,056 8,748 24,726 25,470 Share-based compensation expense 1,350 1,010 4,114 3,649 Other income (1,479 ) — (1,479 ) — Acquisition-related expense — — 1 5 Reorganization and other related costs, net 2,143 2,702 4,218 6,017 Goodwill Impairment charges — 13,799 — 13,799 Legal settlement and insurance recoveries, net (868 ) — (808 ) 150 Foreign exchange (gain) loss 765 (721 ) (23 ) 149 Adjusted EBITDA (non-GAAP) $ 23,289 $ 20,896 $ 61,568 $ 46,614 Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP) (dollars in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income (loss) attributable to Mistras Group, Inc. (GAAP) $ 6,401 $ (10,298 ) $ 13,765 $ (14,947 ) Goodwill Impairment charges — 13,799 — 13,799 Reorganization and other costs 2,143 2,702 4,218 6,017 Legal settlement and insurance recoveries, net (868 ) — (808 ) 150 Other income (1,479 ) — (1,479 ) — Acquisition-related expense, net — — 1 5 Special Items Total $ (204 ) $ 16,501 $ 1,932 $ 19,971 Tax impact on special items 58 (653 ) (463 ) (1,468 ) Special items, net of tax $ (146 ) $ 15,848 $ 1,469 $ 18,503 Net income attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP) $ 6,255 $ 5,550 $ 15,234 $ 3,556 Diluted EPS (GAAP) (1) $ 0.20 $ (0.34 ) $ 0.44 $ (0.49 ) Special items, net of tax — 0.52 0.05 0.61 Diluted EPS Excluding Special Items (non-GAAP) $ 0.20 $ 0.18 $ 0.49 $ 0.12 ____________________ (1) For the three and nine months ended September 30, 2023, 1,508,255 and 926,224 shares related to restricted stock were excluded from the calculation of diluted EPS due to the net loss for the periods, respectively. View Comments Terms and Privacy Policy Privacy Dashboard Recommended Stories
  Content Reference URL	None

• Publisher

  None

• Data Source

  Data Source Name	Yahoo Finance News (#2)
  Data Source Type	news
  Data Source URL	https://finance.yahoo.com/
  Description	Yahoo! Finance is a media property that is part of the Yahoo! network. It provides financial news, data and commentary including stock quotes, press releases, financial reports, and original content. It also offers some online tools for personal finance management.
  Weight	10