NYSE$ONT

Montrose Environmental Group Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Montrose Environmental Group announced results for the first quarter ended March 31, 2021, with a significant increase in revenue and improved profitability.

Montrose Environmental Group reported a strong first quarter in 2021, with revenue increasing by 119.3% to $133.8 million and a net loss of $11.6 million. The company's Adjusted EBITDA increased by 202.5% to $16.8 million, with the Adjusted EBITDA margin improving to 12.6%.

  • Total revenue increased by 119.3% compared to the prior year quarter, reaching $133.8 million.
  • Net loss improved to $11.6 million compared to a net loss of $41.2 million in the prior year quarter.
  • Adjusted EBITDA increased by 202.5% compared to the prior year quarter, reaching $16.8 million.
  • Adjusted EBITDA margin improved to 12.6% compared to 9.1% in the prior year quarter.

Headline financials

Total Revenue

$134M

Previous: $61M+119.3%
EPS (adj)

-$0.18

Previous: -$5.24+96.6%
Consolidated Adjusted EBITDA

$16.8M

No prior period
Adj EBITDA Margin

12.6%

No prior period
Net Income

-$11.6M

Previous: -$41.2M+71.9%
Operating Income

-$8.33M

Previous: -$12M+30.4%
Cash & Equivalents

$10.6M

No prior period

Revenue & EPS history

Montrose · Revenue · Quarterly

$134M

Q1 2021+119.3%vs Q1 2020
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Revenue by segment

Montrose · $111M total across 2 segments · Q3 2023

  • Remediation and Reuse
    $60.5M
  • Measurement and Analysis
    $50.5M

Forward guidance

The Company expects full year 2021 Adjusted EBITDA to be in the range of $63.0 million to $70.0 million, which is increased from its prior full year 2021 guidance of $61.0 million to $67.0 million in Adjusted EBITDA.

Tailwinds

  • Anticipated year-over-year revenue growth in excess of 20.0% at the mid-point.
  • Outlook based on a combination of mid-to-high single digit organic growth plus the contribution of completed acquisitions.
  • Expect to continue adding strategically and financially accretive acquisitions
  • Strong start to the year
  • Strength across its segments

Headwinds

  • The outlook does not include any benefit from future acquisitions that have not yet been completed.
  • Demand for environmental services does not follow fiscal quarter patterns, the Company’s business is best assessed on yearly results.
  • Cannot reconcile projection of Adjusted EBITDA to net income (loss)
  • Unable to estimate for the future impact of certain items, including income tax (expense) benefit, stock-based compensation expense, fair value changes and the accounting for the issuance of the Series A-2 preferred stock.
  • The variability of these items could have a significant impact on reported GAAP financial results.

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 2021

Historical avgQ1 2021

+2.5%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+0.3%

Avg return

30 days after

48%

13 / 27 earnings

Positive

+32.6%

Q4 2024

Best reaction

-14.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+22.6%+21.4%-9.7%
Q3 2025+5.1%+0.3%+6.8%
Q2 2025+8.1%+20.7%+34.5%
Q1 2025+17.3%+23.6%+42.3%
Q4 2024+32.6%+6.9%-17.4%
Q3 2024-11.3%-18.5%-36.5%
Q1 2024-8.2%-6.9%-5.0%
Q4 2023+15.2%+9.4%+18.7%
Q3 2023+4.8%+4.6%+28.3%
Q2 2023+10.4%+3.9%-6.0%
Q1 2023+15.4%+16.4%+41.7%
Q4 2022-14.0%-26.4%-31.1%
Q3 2022-6.1%+18.7%+7.8%
Q2 2022+0.4%+9.7%+0.7%
Q1 2022-8.7%-9.5%-13.0%
Q4 2021-9.4%+3.2%+19.0%
Q3 2021+2.0%+1.6%-5.9%
Q2 2021+4.8%-3.8%+13.2%
Q1 2021-9.2%-6.6%-9.3%
Q4 2020+6.1%+8.7%+30.5%
Q3 2020-0.5%+11.6%-7.1%
Q3 2019-0.5%+11.6%-7.1%
Q1 2020-2.1%+0.5%-17.3%
Q2 2020-2.1%+0.5%-17.3%
Q1 2019-2.1%+0.5%-17.3%
Q2 2019-2.1%+0.5%-17.3%
Q4 2019-2.1%+0.5%-17.3%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q2 2013

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