NASDAQ$MTRX

Matrix Service Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter fiscal 2023 results, showing increased backlog and project awards.

Matrix Service Company reported a net loss of $12.7 million, or $0.47 per share, for the third quarter of fiscal 2023. However, the company saw strong award momentum with a book-to-bill of 1.7 and a 12% increase in backlog compared to the previous quarter.

  • Project awards of $308.7 million resulted in a book-to-bill ratio of 1.7 for the quarter.
  • Backlog increased by 12% to $832.4 million compared to the second quarter of fiscal 2023.
  • Third quarter revenue was $186.9 million, a 6% increase compared to the third quarter of fiscal 2022.
  • Loss per share was $0.47, with an adjusted loss per share of $0.33.

Headline financials

Total Revenue

$187M

Previous: $177M+5.6%
EPS (adj)

-$0.33

Previous: -$0.50+34.0%
Capital Expenditures

-$6.21M

Previous: -$1.34M-365.3%
Free Cash Flow

-$18.9M

Previous: -$36.2M+47.8%
Net Income

-$12.7M

Previous: -$34.9M+63.6%
Operating Income

-$12.8M

Previous: -$35.5M+64.1%
Gross Profit

$4.42M

Previous: -$1.76M+350.7%
Cash & Equivalents

$48.2M

Previous: $34.1M+41.4%
Total Assets

$426M

Previous: $413M+3.1%
Stock-Based Comp

$1.41M

Previous: $2.09M-32.6%

Revenue & EPS history

Matrix Service · Revenue · Quarterly

$187M

Q3 2023+5.6%vs Q3 2022
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

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

  • Storage and Terminal Solutions
    $123M-17.8%

Forward guidance

Matrix Service Company expects financial performance to significantly improve in the fourth fiscal quarter as work begins on several recently awarded large projects, especially in the Storage and Terminal Solutions segment.

Tailwinds

  • Strong award momentum continued in the third fiscal quarter.
  • Bidding activity continues to be strong.
  • Trend in backlog growth is expected to continue in the coming quarters.
  • Financial performance is expected to significantly improve in the fourth fiscal quarter.
  • Strong project awards received in the first nine months of fiscal 2023 are expected to positively impact revenue in the fourth quarter.

Headwinds

  • Revenue during the third quarter of fiscal 2023 was lower than the previous quarter.
  • Results of operations were primarily impacted by revenue levels, which led to under-recovery of construction overhead costs in some operating units.
  • Results were impacted by increased forecasted costs to complete and close out certain midstream gas processing work.
  • Negative gross margin in the Storage and Terminals Solutions segment was primarily caused by low revenue volume.
  • Segment gross margin was negatively impacted by the under-recovery of construction overhead costs.

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 2023

Historical avgQ3 2023

-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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