NASDAQ$MTRX

Matrix Service Co · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to COVID-19 and weather impacts, resulting in a net loss.

Matrix Service Company reported a third quarter revenue of $148.3 million, impacted by COVID-19 and severe weather. The company experienced a net loss of $0.49 per share, with an adjusted loss of $0.43 per share. Despite these challenges, the company maintains a strong balance sheet with $73.8 million in cash and no debt, and anticipates improved results in the coming quarters.

  • Third quarter revenue was $148.3 million, affected by COVID-19 and weather.
  • Loss per share was $0.49, adjusted loss per share was $0.43.
  • Book-to-bill ratio was 0.9 with project awards of $138.0 million and a backlog of $538.3 million.
  • Company anticipates increasing project awards as the year progresses and is focused on clean energy opportunities.

Headline financials

Total Revenue

$148M

Previous: $248M-40.3%
EPS (adj)

-$0.43

Previous: -$0.02-2050.0%
Total Backlog

$538M

Previous: $727M-26.0%
Book-to-Bill Ratio

0.9%

Previous: 0.5%+80.0%
Capital Expenditures

-$3.9M

Previous: -$17.7M+77.9%
Free Cash Flow

-$16.8M

Previous: -$23.1M+27.5%
Net Income

-$12.9M

Previous: -$5.5M-134.3%
Operating Income

-$17.5M

Previous: -$5.8M-201.4%
Gross Profit

$1.56M

Previous: $20.5M-92.4%
Cash & Equivalents

$73.8M

Previous: $87.5M-15.7%
Total Assets

$472M

Previous: $567M-16.9%
Stock-Based Comp

$2.21M

Previous: $2.3M-3.8%

Revenue & EPS history

Matrix Service · Revenue · Quarterly

$148M

Q3 2021-40.3%vs Q3 2020
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

The Company expects results to improve as business volumes increase following $60 million of cost reductions achieved over the last year. While certain project awards and starts have certainly been delayed, the company believes the third quarter was the bottom of the cycle and expect the fourth quarter to significantly improve. We expect this improvement to continue as we move into fiscal 2022.

Tailwinds

  • COVID-19 infection rates are declining.
  • Bidding opportunities are growing, especially in key strategic areas.
  • Balance sheet is strong.
  • Leaner organization is in place.
  • Increasing focus on clean energy solutions is creating new, significant opportunities.

Headwinds

  • Project awards and starts have been delayed.
  • Third quarter results were negatively impacted by lower than forecasted volumes.
  • Under recovery of construction overhead costs reduced gross margin.
  • COVID-19's impact on energy demand has affected market conditions.
  • Some customers continue to delay or reduce discretionary maintenance and capital spending.

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 Q3 2021

Historical avgQ3 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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