NYSE$MG

Mistras Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Revenue increased by 42.8% and net income reported at $5.9 million.

MISTRAS Group reported strong second-quarter results with significant top and bottom-line growth, driven by a rebound in the oil and gas market. Revenue increased by 42.8% to $177.7 million, and adjusted EBITDA rose by 96.5% to $22.6 million.

  • Revenue increased by 42.8% to $177.7 million.
  • Gross profit increased by 34.4% to $55.3 million.
  • Adjusted EBITDA increased by 96.5% to $22.6 million.
  • Net income was reported at $5.9 million, with diluted EPS of $0.20.

Headline financials

Total Revenue

$178M

Previous: $124M+42.8%
EPS (adj)

$0.22

Previous: -$0.06+466.7%
Adjusted EBITDA

$22.6M

Previous: $11.5M+96.9%
Capital Expenditures

-$10.2M

Previous: -$7.44M-36.9%
Free Cash Flow

-$4.25M

Previous: -$10.1M+57.9%
Net Income

$5.94M

Previous: -$2.66M+323.5%
Operating Income

$11.4M

Previous: -$383K+3069.7%
Gross Profit

$55.3M

Previous: $41.2M+34.4%
Cash & Equivalents

$19.9M

Previous: $22.6M-11.7%
Total Assets

$587M

Previous: $568M+3.5%

Revenue & EPS history

Mistras · Revenue · Quarterly

$178M

Q2 2021+42.8%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Mistras · $35.2M total across 2 segments · Q2 2021

  • International
    $32M+49.7%
  • Products and Systems
    $3.2M-20.0%

Forward guidance

The Company expects revenue to increase in the low-to-mid teens percentage in the third quarter of 2021 over the prior year quarter. Adjusted EBITDA is expected to be higher in the third quarter of 2021 than the prior year period, but lower sequentially than the second quarter of 2021.

Tailwinds

  • Energy prices and demand are currently stable.
  • Company expects revenue to increase in the low-to-mid teens percentage in the third quarter of 2021 over the prior year quarter.
  • Adjusted EBITDA is expected to be higher in the third quarter of 2021 than the prior year period.
  • Revised credit agreement will reduce annual interest expense by almost $6 million per year commencing in the third quarter.
  • Company is well positioned to consistently drive improvements across the organization and to capitalize on the increasing demand.

Headwinds

  • Ongoing COVID-19 pandemic continues to significantly impact the Company’s second largest market, Aerospace.
  • Adjusted EBITDA is expected to be lower sequentially than the second quarter of 2021, due to substantially all of the remaining temporary cost reductions from 2020 being restored during the third quarter of 2021.
  • Continuing stabilization in crude oil markets is needed.
  • A timely and effective COVID-19 vaccination rollout in 2021 is needed.
  • No new or increased stay-in-place mandates resulting from an increased spread of COVID-19 variants, which would impact the Company’s ability to work as a critical service provider are needed.

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

+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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