NYSE$ONT

Montrose Environmental Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Montrose reported strong results driven by growing demand for innovative environmental solutions.

Montrose Environmental Group announced strong Q4 and full year 2020 results. Q4 revenue increased by 60.2% compared to the prior year quarter, and the company generated net income and record Adjusted EBITDA and Adjusted EBITDA margin. The company also provided full year 2021 outlook.

  • Fourth quarter revenue increased 60.2% compared to the prior year quarter.
  • Fourth quarter net income was $0.8 million, compared to a net loss of $11.3 million in the prior year quarter.
  • Fourth quarter Adjusted EBITDA increased to $18.3 million, compared to $10.5 million in the prior year quarter.
  • Fourth quarter adjusted EBITDA margin improved to 16.8% compared to 15.5% in the prior year quarter.

Headline financials

Total Revenue

$109M

Previous: $67.9M+60.2%
EPS (adj)

-$0.13

Previous: -$1.89+93.1%
Capital Expenditures

$1.84M

Previous: $1.93M-4.5%
Free Cash Flow

$3.89M

Previous: $2.57M+51.4%
Net Income

$800K

Previous: -$11.3M+107.1%
Operating Income

$8.88M

Previous: -$3.62M+345.5%
Gross Profit

$35.4M

Previous: $20.1M+75.6%
Cash & Equivalents

$34.4M

Previous: $6.41M+436.4%
Total Assets

$603M

Previous: $332M+81.6%
Stock-Based Comp

$1.41M

Previous: $768K+83.6%

Revenue & EPS history

Montrose · Revenue · Quarterly

$109M

Q4 2020+60.2%vs Q4 2019
Beat estimate in 4 of 11 quarters(36%)
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 is introducing its full year 2021 outlook for Adjusted EBITDA1 to be in the range of $61 million to $67 million, reflecting anticipated year-over-year revenue growth of approximately 20% at the mid-point. The Company expects Adjusted EBITDA margin1 to be in the range of 16.0% to 17.0% for full year 2021.

Tailwinds

  • Anticipated year-over-year revenue growth of approximately 20% at the mid-point.
  • Adjusted EBITDA margin1 to be in the range of 16.0% to 17.0% for full year 2021.
  • Mid-to-high single digit organic growth
  • Contribution of completed acquisitions
  • Expect to meet or exceed 20% revenue growth threshold in 2021

Headwinds

  • Outlook does not include any benefit from future acquisitions that have not yet been completed.
  • Variability of certain items could have a significant impact on our reported GAAP financial results.
  • 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.
  • Demand for environmental services is not driven by specific or predictable patterns in one or more fiscal quarters
  • Business is better assessed on yearly 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 Q4 2020

Historical avgQ4 2020

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro