NASDAQ$MTRX

Matrix Service Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a loss in the first quarter of fiscal year 2022, but project awards and backlog increased.

Matrix Service Company reported a net loss of $17.5 million, or $0.66 per diluted share, for the first quarter of fiscal 2022. However, the company saw a significant increase in project awards, achieving a book-to-bill ratio of 1.6 with project awards of $266.9 million, the highest since Q1 2020. Backlog increased by 21.4% to $561.4 million, and the company maintains a strong balance sheet with no debt and a new $100 million credit facility.

  • Project awards of $266.9 million resulted in a book-to-bill of 1.6, the highest since Q1 2020.
  • Backlog increased 21.4% to $561.4 million.
  • Balance sheet remains strong with no debt; new $100.0 million credit facility.
  • First quarter revenue was $168.1 million.

Headline financials

Total Revenue

$168M

No prior period
EPS (adj)

-$0.60

No prior period
Total Backlog

$561M

No prior period
Book-to-Bill Ratio

1.6%

No prior period
Capital Expenditures

-$219K

No prior period
Free Cash Flow

-$17.8M

No prior period
Net Income

-$17.5M

No prior period
Operating Income

-$20.7M

No prior period
Gross Profit

-$3.51M

No prior period
Cash & Equivalents

$34.7M

No prior period
Total Assets

$450M

No prior period
Stock-Based Comp

$1.87M

No prior period

Revenue & EPS history

Matrix Service · Revenue · Quarterly

$168M

Q1 2022
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Matrix Service · $123M total across 1 segment · Q4 2020

  • Storage and Terminal Solutions
    $123M-17.8%

Forward guidance

Based on the strengthening market conditions and the first quarter awards, the company expects improving results in the second half of the fiscal year and believes that the award cycle will strengthen as we move into the new calendar year

Tailwinds

  • Strengthening market conditions
  • Significant increase in project awards
  • Diversified projects such as LNG storage, thermal vacuum chambers, renewable fuels, and electrical infrastructure
  • Bidding remains extremely strong across all segments
  • Improving backlog trend

Headwinds

  • Low gross margin and earnings for all three segments in the quarter
  • Disappointing operating performance in the Storage and Terminals Solutions segment
  • Increase in the forecasted costs to complete a large capital project in the Utility and Power Infrastructure segment
  • Charge related to the collection of amounts owed on a project completed in 2019 that was tied up in litigation
  • Unexpected equipment repairs during commissioning that delayed the scheduled completion and increased the estimated costs to complete

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-2.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.7%

Avg return

30 days after

46%

29 / 63 earnings

Positive

+27.3%

Q2 2014

Best reaction

-34.3%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-12.0%-11.9%-1.9%
Q2 2026-16.7%-15.5%-18.8%
Q1 2026-18.8%-19.7%-25.1%
Q3 2025+11.1%+5.8%+1.6%
Q2 2025+0.1%+6.7%-16.6%
Q1 2025+13.1%+13.8%+14.3%
Q4 2024+12.5%+17.0%+21.6%
Q3 2024-10.8%-8.7%-9.1%
Q2 2024+20.5%+30.8%+38.9%
Q1 2024+2.2%-1.7%-14.1%
Q4 2023+13.4%+14.1%+51.4%
Q3 2023+2.8%+3.1%+8.3%
Q2 2023-19.2%-26.3%-30.9%
Q1 2023+6.7%+8.9%+15.6%
Q4 2022-7.4%-12.2%+13.6%
Q3 2022-17.0%-23.4%+3.2%
Q2 2022+2.6%-2.2%+31.5%
Q1 2022-0.9%-1.0%-18.6%
Q4 2021-4.5%-5.7%-0.8%
Q3 2021-8.2%-10.2%-20.3%
Q2 2021-1.6%+1.2%+22.7%
Q4 2020-5.8%+6.9%-7.8%
Q3 2020-2.7%-5.5%+24.2%
Q2 2020-34.3%-35.3%-36.3%
Q1 2020-0.7%-7.0%+6.5%
Q4 2019+17.8%+7.3%-5.0%
Q3 2019+12.1%+7.9%-3.6%
Q2 2019-12.4%-7.4%-10.7%
Q1 2019+7.9%-2.7%-12.1%
Q4 2018+2.1%+22.6%+9.3%
Q3 2018+0.9%+2.7%+11.3%
Q2 2018-14.7%-12.4%-8.3%
Q1 2018+3.9%+9.2%+19.7%
Q4 2017+14.4%+17.7%+16.0%
Q3 2017-6.5%-8.4%-19.2%
Q2 2017-12.9%-17.9%-26.4%
Q1 2017+2.4%+11.5%+28.6%
Q4 2016+13.2%+13.2%+13.3%
Q3 2016-23.2%
Q2 2016-12.0%
Q1 2016-5.9%
Q4 2015+7.0%
Q3 2015-15.3%
Q2 2015-12.9%
Q1 2015-8.4%
Q4 2014-19.5%
Q3 2014+14.4%
Q2 2014+27.3%
Q1 2014-4.6%
Q4 2013+4.7%
Q3 2013+4.9%
Q2 2013+4.4%
Q1 2013+4.4%
Q4 2010-8.8%
Q4 2012-11.0%
Q3 2011-8.9%
Q3 2012-10.9%
Q2 2011+0.2%
Q2 2012+1.1%
Q1 2012-6.0%
Q1 2011-6.0%
Q4 2011-6.0%
Q3 2010+11.8%

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