PRINCETON JUNCTION, N.J., Oct. 12, 2010 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), a leading "one source" global provider of technology enabled asset protection solutions, today reported financial results for its fiscal first quarter ending August 31, 2010.
Key Highlights for Fiscal Q1-2011 results included:
- Revenue for the first quarter of fiscal 2011 was $68.4 million, representing a 22% increase over the comparable quarter in 2010 with revenues of $56.1 million.
- Adjusted EBITDA*, a non-GAAP measure detailed later in this release, grew by 21% to $8.5 million in the first quarter of fiscal 2011 versus $7.0 million in the first quarter of fiscal 2010.
- Net income for the first quarter of fiscal 2011 was $1.6 million, or $.06 per diluted share, up from $0.8 million, or $.04 per diluted share, in the first quarter of fiscal 2010.
- The Company generated $8.3 million in net cash from operating activities in the first quarter of fiscal 2011, versus $5.5 million in the first quarter of fiscal 2010, representing an increase of 51%.
Revenue growth of 22% in the fiscal first quarter was driven by 15% organic growth, 8% acquisition growth and was partially offset by a decrease of less than 1% related to the impact of foreign currency. During the first quarter of fiscal 2011, the Company achieved revenue growth across all of its segments, including gains of 21% in the Services Segment, 46% in the Products and Systems segment and 17% in the International segment.
Net Income during the first quarter of 2011 included a legal provision of $0.3 million as compared to a $0.3 million reversal of a legal provision in the first quarter of 2010. In addition, net income for the first quarter of 2011 included $0.7 million in stock compensation compared to $0.3 million in the first quarter of 2010. Both of these expense classifications are included in the calculation of Adjusted EBITDA*. The company uses Adjusted EBITDA* as a key measure of its business because management believes that it better reflects the results of its core operations.
Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated that, "We are extremely pleased with our performance in the first quarter of fiscal 2011. We continue to deliver double digit growth in revenues, EBITDA and net income, which is unique in our industry. These results are a testament to our 'one source' value proposition of technology-enabled services, proprietary products and systems and enterprise inspection software. Mistras continues to be an industry pace setter, increasingly delivering value and predictability for the industrial and public infrastructure that we serve. We are delighted that during the first quarter, several new customers have trusted Mistras to outsource the inspection of their valuable assets resulting in multiple multi-year run and maintain evergreen contracts."
Business Outlook for Fiscal 2011:
The Company is forecasting continued double digit growth in Revenues and Adjusted EBITDA* for Fiscal 2011. The Company is affirming its previously issued guidance and projects its fiscal 2011 revenues to be in the range of $300 million to $330 million and Adjusted EBITDA* to be in the range of $44 million to $49 million. These projections anticipate continued organic growth supplemented by acquisitions, as well as an improvement in the Company's profitability. Mistras does not provide specific guidance for individual quarters, but will reaffirm or update our annual guidance at least quarterly.
Conference Call to Discuss First Quarter Results
Mistras will have a conference call on Wednesday, October 13, 2010 at 9:00 am Eastern Time to discuss its results for the first quarter of fiscal year 2011. The call will be broadcast over the Web and can be accessed on Mistras' Website, . Individuals in the U.S. wishing to participate in the conference call by phone may call 866-831-6162 and use confirmation code 65923895 when prompted. The International number is 617-213-8852. Those who wish to listen to the call later can access an archived copy of the conference call at the Mistras Website.
About Mistras Group, Inc.
Mistras offers one of the broadest "one source" services and technology-enabled asset protection solution portfolios in the industry used to evaluate the structural integrity of energy, industrial and public infrastructure. Mission critical services and solutions are delivered globally and provide customers with the ability to extend the useful life of their assets, improve productivity and profitability, comply with government safety and environmental regulations and enhance risk management operational decisions.
Mistras uniquely combines its industry leading products and technologies - 24/7 on-line monitoring of critical assets; mechanical integrity ("MI") and non-destructive testing ("NDT") services; and its proprietary world class data warehousing and analysis software - to provide comprehensive and competitive products, systems and services solutions from a single source provider.
For more information, please visit the company's website at www.mistrasgroup.com or contact Frank Joyce, Chief Financial Officer at 609-716-4103.
The Mistras Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6966
Forward-Looking and Cautionary Statements
Certain statements made in this press release are "forward-looking statements" about Mistras' financial results and estimates, products and services, business model, strategy, growth opportunities, profitability and competitive position. These forward-looking statements generally use words such as "future," "possible," "potential," "targeted," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," "project," "will," "may," "should," "could," "would" and other similar words and phrases. Such statements are not guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. Important factors that could cause such differences include, but are not limited to, current economic conditions; loss of or reduction in business with a significant customer; adverse change in the industries Mistras serves, which include oil and gas, power transmission and generation, chemical, aerospace and infrastructure; market acceptance of Mistras' products and services; significant changes in the competitive environment; catastrophic events that cause disruptions to the business of Mistras or its customers; the ability to attract and train engineers, scientists, and skilled technicians; and any accidents or incidents involving the Company's services or asset protection solutions. A further list, description and discussion of these and other risks and uncertainties can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 17, 2010.
You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and Mistras undertakes no obligation to update such statements as a result of new information, future events or otherwise.
* Use of Non-GAAP Measures
The term "Adjusted EBITDA" is a financial measurement not calculated in accordance with U.S. generally accepted accounting principles. The Company believes that investors and other users of the financial statements benefit from the presentation of Adjusted EBITDA because it provides an additional metric to compare the Company's operating performance on a consistent basis and measure underlying trends and results of the Company's business. An explanation of Adjusted EBITDA and a reconciliation of this to a financial measurement under GAAP are set forth in a table attached to this press release.
"Adjusted EBITDA" is defined as net income attributable to common shareholders plus: interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, certain acquisition related costs and certain one-time and generally non-recurring items (which are included in the reconciliation above).
CONTACT: Mistras Group, Inc. Frank Joyce, Chief Financial Officer 609-716-4103 www.mistrasgroup.com