NYSE$ONT

Montrose Environmental Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Montrose Environmental Group's second quarter results for 2021 were announced, showing strong performance across all segments and increased guidance for the full year.

Montrose Environmental Group reported an 84.7% increase in total revenue to $136.2 million compared to the prior year quarter. However, the company experienced a net loss of $14.5 million, contrasting with a net income of $13.2 million in the prior year quarter, attributed to non-cash fair value adjustments and debt refinancing expenses. Adjusted EBITDA increased by 50.9% to $21.0 million.

  • Total revenue increased by 84.7% to $136.2 million compared to the prior year quarter.
  • Net loss was $14.5 million, compared to a net income of $13.2 million in the prior year quarter.
  • Adjusted EBITDA increased by 50.9% to $21.0 million compared to the prior year quarter.
  • The company increased its Adjusted EBITDA outlook for 2021, expecting it to be in the range of $70.0 million to $75.0 million.

Headline financials

Total Revenue

$136M

Previous: $73.8M+84.7%
EPS (adj)

-$0.71

Previous: $0.61-216.4%
Consolidated Adjusted EBITDA

$21M

No prior period
Adj EBITDA Margin

15.4%

No prior period
Capital Expenditures

$1.43M

Previous: $1.6M-10.6%
Free Cash Flow

-$4.57M

Previous: $5.79M-178.8%
Net Income

-$14.5M

Previous: $13.2M-209.6%
Operating Income

-$7.12M

Previous: -$5.21M-36.8%
Gross Profit

$44.1M

Previous: $27.9M+58.3%
Total Assets

$682M

Previous: $611M+11.5%
Stock-Based Comp

$2.42M

Previous: $1.14M+112.0%

Revenue & EPS history

Montrose · Revenue · Quarterly

$136M

Q2 2021+84.7%vs Q2 2020
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Montrose Environmental Group has increased its Adjusted EBITDA outlook for the full year 2021, now expecting it to be in the range of $70.0 million to $75.0 million. This outlook is supported by heightened demand, continued organic growth, and contributions from recent acquisitions.

Tailwinds

  • Heightened demand for Montrose's service offerings in the first half of 2021.
  • Continued organic growth across its segments.
  • Contribution of acquisitions.
  • Expects to exceed 20% revenue growth threshold in 2021.
  • Continue adding strategically and financially accretive acquisitions.

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

+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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