NYSE$ONT
Montrose Environmental Group Inc · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
Montrose Environmental Group reported first quarter 2022 results with revenue increase despite COVID-19 revenue decline and operating segments' Adjusted EBITDA margin accretion.
Montrose Environmental Group's first quarter 2022 total revenue increased by 0.6% to $134.7 million compared to the prior year, driven by organic growth in Water, Renewable Energy, and GHG measurement services, offsetting a decline in CTEH COVID-19-related revenue. The net loss was $7.5 million, improved from $12.9 million in the prior year. The Total Operating Segments Adjusted EBITDA margin increased to 17.8%.
- Total revenue increased by 0.6% to $134.7 million compared to the prior year quarter.
- Net loss improved to $7.5 million compared to a net loss of $12.9 million in the prior year quarter.
- Total Operating Segments Adjusted EBITDA margin increased to 17.8%, compared to 17.3% in the prior year quarter.
- The company reiterates its full year 2022 outlook for revenue to be in the range of $520.0 million to $570.0 million and Adjusted EBITDA to be in the range of $73.0 million to $78.0 million.
Headline financials
Revenue & EPS history
Montrose · Revenue · Quarterly
$135M
Revenue by segment
Montrose · $111M total across 2 segments · Q3 2023
- Remediation and Reuse$60.5M—54.5%
- Measurement and Analysis$50.5M—45.5%
Forward guidance
The Company reiterates its full year 2022 outlook for revenue to be in the range of $520.0 million to $570.0 million and Adjusted EBITDA to be in the range of $73.0 million to $78.0 million. The Company’s 2022 forecast reflects an expectation of organic growth outperformance relative to the Company’s historical average of 7.0% - 9.0% (excluding CTEH). The 2022 forecast also reflects revenue from CTEH to be elevated versus CTEH's expected $75.0 - $95.0 million revenue run-rate.
Tailwinds
- Strong organic growth in nearly all business lines, excluding CTEH business.
- Successfully integrating the highly additive team from Environmental Standards.
- Optimistic about prospective and accretive acquisitions in our pipeline.
- Expects organic growth outperformance relative to the Company’s historical average of 7.0% - 9.0% (excluding CTEH).
- CTEH revenue to be elevated versus CTEH's expected $75.0 - $95.0 million revenue run-rate.
Headwinds
- CTEH remains elevated due to a continuation of certain COVID-19 pandemic related services which remain difficult to forecast.
- Outlook does not include any benefit from future acquisitions that have not yet been completed.
- Cash used in operating activities for the three months ended March 31, 2022 was $18.3 million compared to cash used in operating activities of $13.9 million in the prior year period.
- Adjusted EBITDA margin declined 40 basis points to 12.2% compared to 12.6% in the prior year quarter despite an increase in Total Operating Segments Adjusted EBITDA margin to 17.8%, compared to 17.3% in the prior year quarter, mainly due to investments in corporate infrastructure to enable the next phase of growth.
- Corporate investments were accelerated given the faster-than-anticipated growth in the business and to support the continued ramp in revenues.
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 2022
+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
| Quarter | Report date | Reaction (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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