NYSE$MG

Mistras Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Mistras Group reported a strong start to the year, marked by revenue growth, improved profitability, and progress in strategic initiatives.

Mistras Group reported a revenue increase of 9.8% to $184.4 million, alongside a net income of $1.0 million, a significant improvement from the previous year's net loss. Adjusted EBITDA also saw a substantial rise of 55.1% to $16.2 million, driven by revenue growth and cost management through Project Phoenix.

  • Revenue increased by 9.8% to $184.4 million, the highest Q1 revenue since 2018.
  • Net income improved to $1.0 million, a significant recovery from a $5.0 million net loss in the prior year.
  • Adjusted EBITDA rose by 55.1% to $16.2 million, the highest Q1 result historically.
  • Gross profit increased by 10.9% with a gross profit margin of 27.7%, driven by improved operating leverage and aerospace growth.

Headline financials

Total Revenue

$184M

Previous: $168M+9.8%
EPS

$0.03

Previous: -$0.12+125.0%
Adjusted EBITDA

$16.2M

Previous: $10.4M+55.1%
Total Gross Debt

$170M

No prior period
SG&A Expenses

$36.3M

No prior period
Capital Expenditures

-$4.8M

Previous: -$4.33M-10.9%
Free Cash Flow

-$3.81M

Previous: -$9.32M+59.1%
Net Income

$995K

Previous: -$4.99M+120.0%
Operating Income

$5.55M

Previous: -$1.83M+403.4%
Gross Profit

$51.1M

Previous: $46.1M+10.9%
Cash & Equivalents

$16.9M

Previous: $16.7M+0.8%
Total Assets

$542M

Previous: $531M+2.1%
R&D Expense

$343K

No prior period
Stock-Based Comp

$1.23M

Previous: $1.88M-34.6%

Revenue & EPS history

Mistras · Revenue · Quarterly

$184M

Q1 2024+9.8%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Mistras · $183M total across 3 segments · Q3 2023

  • North America
    $149M
  • International
    $31M+20.6%
  • Products and Systems
    $2.83M-8.1%

Forward guidance

The Company reaffirms the 2024 full year guidance previously provided.

Tailwinds

  • Full year Revenue between $725 and $750 million
  • Adjusted EBITDA between $84 and $89 million
  • Free cash flow between $34 and $38 million
  • Strategic investments in the business to expand proprietary technologies and extensive knowledge
  • Commitment and focus of employees to deliver high quality results and best in class customer service

Headwinds

  • Room for improvement in increasing free cash flow generation
  • Working capital challenges related to customer invoicing timing
  • Increase in capital expenditures compared to the prior year
  • Healthcare claims expense partially offsetting gross margin improvements
  • Reorganization costs related to Project Phoenix efficiency initiatives

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 2024

Historical avgQ1 2024

+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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