NYSE$ONT

Montrose Environmental Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Montrose's third quarter performance in 2021 was marked by solid execution and strategic acquisitions, driving substantial revenue growth and a return to profitability.

Montrose Environmental Group reported a strong third quarter in 2021, with a 56.5% increase in total revenue to $132.6 million. The company achieved a net income of $2.2 million, a significant improvement from the prior year's net loss of $30.7 million. Adjusted EBITDA increased by 28.6% to $21.5 million, although the Adjusted EBITDA margin declined to 16.2%.

  • Total revenue increased by 56.5% year-over-year, reaching $132.6 million.
  • Net income was $2.2 million, a significant turnaround from a $30.7 million net loss in the prior year.
  • Adjusted EBITDA grew by 28.6% to $21.5 million, with a margin of 16.2%.
  • The company completed two accretive acquisitions during the quarter.

Headline financials

Total Revenue

$133M

Previous: $84.7M+56.5%
EPS (adj)

-$0.07

Previous: -$2.99+97.7%
Capital Expenditures

$3.05M

Previous: $2.21M+38.3%
Free Cash Flow

$27.7M

Previous: -$4.5M+715.8%
Net Income

$2.2M

Previous: -$30.7M+107.2%
Operating Income

$5.37M

Previous: -$14.7M+136.5%
Gross Profit

$47.3M

Previous: $32.9M+44.0%
Total Assets

$668M

Previous: $602M+10.8%
Stock-Based Comp

$2.37M

Previous: $1.15M+105.8%

Revenue & EPS history

Montrose · Revenue · Quarterly

$133M

Q3 2021+56.5%vs Q3 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

Montrose Environmental Group anticipates full year 2021 Adjusted EBITDA to be in the range of $75 million to $80 million.

Tailwinds

  • Continued organic growth across its segments
  • Contribution of completed 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 Q3 2021

Historical avgQ3 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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