NASDAQ$MTRX

Matrix Service Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to the impact of COVID-19, but generated positive cash flow and reduced costs.

Matrix Service Company reported a decrease in revenue for Q2 2021, impacted by COVID-19 and related market disruptions. However, the company generated positive cash flow from operations, fully repaid outstanding debt, and achieved significant cost savings. They are optimistic about increasing project awards in the second half of the fiscal year and are diversifying into cleaner energy markets.

  • Generated $20.8 million cash flow from operations and repaid outstanding debt.
  • Revenue was $167.5 million, impacted by the pandemic.
  • Loss per share was $0.17, adjusted loss per share was $0.03.
  • Achieved $60 million in annualized cost savings.

Headline financials

Total Revenue

$167M

Previous: $319M-47.4%
EPS (adj)

-$0.03

Previous: $0.19-115.8%
Total Backlog

$623M

Previous: $872M-28.6%
Total Project Awards

$112M

No prior period
Capital Expenditures

-$3.07M

Previous: -$14.5M+78.8%
Free Cash Flow

-$7.66M

Previous: -$42.5M+82.0%
Net Income

-$4.59M

Previous: -$28M+83.6%
Operating Income

-$6.46M

Previous: -$31.7M+79.6%
Gross Profit

$15.3M

Previous: $30M-49.0%
Cash & Equivalents

$93.5M

Previous: $110M-15.4%
Total Assets

$480M

Previous: $592M-18.9%
Stock-Based Comp

$1.98M

Previous: $2.79M-29.0%

Revenue & EPS history

Matrix Service · Revenue · Quarterly

$167M

Q2 2021-47.4%vs Q2 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

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

  • Storage and Terminal Solutions
    $123M-17.8%

Forward guidance

The company expects improvement in the second half of the fiscal year with robust bidding opportunities, especially in strategic areas including small to mid-size LNG facilities, electrical infrastructure, thermal vacuum chambers, rare earth metals and minerals, and hydrogen. They anticipate priorities of the new presidential administration will lead to increased opportunities.

Tailwinds

  • Expect improvement as we move through the second half of the fiscal year.
  • Bidding opportunities are robust, especially in key strategic areas.
  • Strong demand for thermal vacuum chambers.
  • Increasing opportunities in mining and minerals and chemicals.
  • Priorities of the new presidential administration will lead to increased opportunities in the Utility and Power Infrastructure segment.

Headwinds

  • Continued impact of COVID-19 on end markets.
  • Client business uncertainty.
  • Additional safety protocols implemented to protect employee health.
  • Energy demand destruction.
  • Global economic slowdown.

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 Q2 2021

Historical avgQ2 2021

-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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