NYSE$MG

Mistras Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Mistras Group reported first quarter 2020 results with revenue exceeding forecast and strategic actions implemented to lower costs.

Mistras Group's first quarter 2020 revenue reached $159.5 million, exceeding expectations, while cash from operations was $6.1 million. The company faced challenges due to the slowdown in energy markets and the impact of COVID-19, leading to non-cash impairment charges of $106.1 million. Strategic actions were implemented to reduce overhead spending and maintain liquidity.

  • Revenue of $159.5 million, exceeding forecast.
  • Cash from operations of $6.1 million.
  • Credit facility amended to provide covenant flexibility and maintain liquidity.
  • Selling, general and administrative expenses of $41.6 million, down despite additive acquisition.

Headline financials

Total Revenue

$159M

Previous: $177M-9.8%
EPS (adj)

-$0.24

Previous: -$0.03-700.0%
Adjusted EBITDA

$5.42M

Previous: $12.7M-57.3%
Capital Expenditures

-$4.3M

Previous: -$5.64M+23.7%
Free Cash Flow

-$103M

Previous: -$10.9M-840.6%
Net Income

-$98.5M

Previous: -$5.29M-1761.1%
Operating Income

-$111M

Previous: -$4.4M-2430.2%
Gross Profit

$40.6M

Previous: $48.9M-16.8%
Cash & Equivalents

$17M

Previous: $24.6M-30.8%
Total Assets

$584M

Previous: $725M-19.6%

Revenue & EPS history

Mistras · Revenue · Quarterly

$159M

Q1 2020-9.8%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Mistras · $31.9M total across 2 segments · Q1 2020

  • International
    $29.1M-17.3%
  • Products and Systems
    $2.81M-18.1%

Forward guidance

Due to ongoing macro concerns related to COVID-19, Mistras Group is not providing full-year 2020 guidance. However, they anticipate Q2 2020 revenues to decrease up to the high 30% range from the prior period, while expecting positive cash from operations and adjusted EBITDA. The company is optimistic about higher consolidated revenue in the second half of 2020 compared to the first half, contingent on macroeconomic improvements.

Tailwinds

  • Cash from operations are expected to remain positive.
  • Adjusted EBITDA is expected to remain positive.
  • Consolidated revenue in the second half of 2020 will be higher than the first half of 2020
  • Improvements in both cash flow in the second half of 2020 compared to the first half of 2020
  • Improvements in adjusted EBITDA in the second half of 2020 compared to the first half of 2020

Headwinds

  • Ongoing macro concerns attributable to the impact of COVID-19 coronavirus, continue to put crude oil prices under intense pressure.
  • Continuing economic uncertainty.
  • Revenues for the second quarter of 2020 to decrease up to high 30% from the prior period level.
  • Difficult to forecast with any degree of certainty at this time.
  • Outlook is contingent on continuing macroeconomic improvements, including stabilization in the crude oil markets and the relaxing of certain stay-in-place mandates.

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 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+41.9%

Q1 2015

Best reaction

-25.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-9.1%-5.8%
Q4 2025-5.8%-8.2%-2.4%
Q3 2025+0.1%-1.0%+24.0%
Q1 2025-0.4%-6.9%-2.6%
Q4 2024+12.2%+7.9%+1.4%
Q3 2024-25.0%-25.5%-17.4%
Q2 2024+1.0%-1.3%+19.2%
Q1 2024+5.6%+2.3%-2.3%
Q4 2023+8.1%+7.6%+15.6%
Q3 2023+10.2%+10.8%+24.3%
Q2 2023-21.4%-31.1%-30.9%
Q1 2023-15.8%-14.2%-14.2%
Q4 2022+3.0%+5.6%+38.2%
Q3 2022-13.4%-10.9%-24.3%
Q2 2022+2.7%+0.0%-14.8%
Q1 2022+4.0%-3.3%+2.8%
Q4 2021-0.2%+2.5%-3.5%
Q3 2021-10.6%-11.6%-25.3%
Q2 2021+0.8%-1.6%+0.6%
Q1 2021-4.0%-15.0%-10.1%
Q4 2020+9.9%+6.3%+7.0%
Q3 2020+4.9%+22.3%+52.1%
Q2 2020+18.2%+21.5%+24.9%
Q1 2020+2.5%+15.6%+33.4%
Q4 2019+6.0%+11.5%-4.5%
Q3 2019-11.2%-8.5%-14.7%
Q2 2019+12.0%+11.3%-1.8%
Q1 2019-5.2%-3.6%+0.6%
Q4 2018-9.0%-8.7%-12.1%
Q3 2018-12.3%-11.3%-17.6%
Q2 2018+13.5%+9.3%+10.7%
Q1 2018+1.1%-6.2%+0.7%
Q4 2017-2.7%-2.8%-1.9%
Q3 2017+6.6%+5.8%+6.4%
Q2 2017-5.3%-11.0%-1.4%
Q1 2017+1.1%-2.9%-7.2%
Q4 2016-11.3%-1.9%-6.6%
Q3 2016-6.4%
Q2 2016+15.6%
Q1 2015+41.9%
Q4 2015-14.7%
Q3 2015-2.0%
Q2 2015+17.9%
Q3 2014-3.1%
Q2 2014+3.0%
Q1 2014+1.8%
Q4 2013+10.5%
Q3 2013+6.7%
Q2 2013-4.7%
Q1 2013-12.5%
Q4 2012-10.7%
Q3 2012-1.8%
Q2 2012+2.3%
Q1 2012+0.0%
Q4 2011-6.7%
Q3 2011+5.2%
Q2 2011+10.3%
Q1 2011+4.7%
Q4 2010+1.7%
Q3 2010-0.5%
Q2 2010+2.5%
Q1 2009+0.6%

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