Skip to main content

MISTRAS Announces Fourth Quarter and Full Year 2023 Results

Q4 2023 Revenue of $182.1 million, up 8.2%

Q4 2023 Net Loss of $2.5 million reflecting $6.3 million of reorganization and other costs and $1.2 million of foreign currency exchange losses

Q4 2023 Adjusted EBITDA (non-GAAP) of $19.2 million compared to $15.7 million in the prior year, up 22.0%;
highest Q4 result historically

Full Year 2023 Net Cash Provided by Operating Activities of $26.7 million consistent with the prior year,
whereas Free Cash Flow (non-GAAP) of $3.1 million was lower than the prior year,
reflecting increased strategic spend in expanding growth areas

PRINCETON JUNCTION, N.J., March 06, 2024 (GLOBE NEWSWIRE) — MISTRAS Group, Inc. (MG: NYSE), a leading “one source” multinational provider of integrated technology-enabled asset protection solutions, reported financial results for its fourth quarter and year ended December 31, 2023.

“I am pleased to report strong top and bottom-line growth in the fourth quarter of 2023. Although a small sample, our fourth quarter performance is evidence of the effectiveness of Project Phoenix initiatives to improve profitability and Adjusted EBITDA through meaningful margin improvement and steps to achieve sustained cost savings. More importantly, this provides momentum heading into 2024, where we expect to realize the majority of the financial benefits from the implementation in 2023 of the initiatives that Project Phoenix has driven throughout the organization. Consequently, I am reiterating our expectation that fiscal 2024 Adjusted EBITDA will be one of our all-time high performance years,” said Manny N. Stamatakis, Interim President and Chief Executive Officer.

Edward Prajzner, Senior Executive Vice President and Chief Financial Officer, commented, “Fourth quarter results clearly demonstrate that we can drive significant bottom line growth by leveraging improved sales efficiency and enhanced operational productivity. Despite headwinds faced earlier in the year, we saw positive momentum in the second half of 2023 and our fourth quarter results are a tangible example of the momentum we have built heading into 2024. We are pleased by the early success achieved on our Project Phoenix objectives, but also recognize this is only the beginning and our job is not yet complete. The entire organization is re-energized and intently focused on finding new opportunities to efficiently leverage our core competencies.”

Highlights for the Fourth Quarter 2023*

  • Revenue of $182.1 million, an increase of 8.2%
  • Gross profit of $53.6 million, an increase of 5.3%, with gross profit margin of 29.5%, a decrease of 80 basis points due to an unfavorable sales mix and higher employee benefit credits in the prior year period
  • Selling, general and administrative expenses of $42.9 million, up 1.7%, due to higher foreign currency exchange losses and other discrete items, offset by savings associated with Project Phoenix actions and other cost reduction measures
  • Net loss of $2.5 million, or ($0.08) per share, reflecting reorganization and other costs of $6.3 million; Net income excluding special items (non-GAAP) of $2.9 million, or $0.10 per share
  • Adjusted EBITDA of $19.2 million, an increase of 22.0%, as a result of operating leverage and cost controls

*    All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted.

For the fourth quarter of 2023, consolidated revenue was $182.1 million, an increase of 8.2% from the fourth quarter of 2022. Revenue growth in the fourth quarter was led by a 13.4% increase in the Oil & Gas industry, a 15.3% increase in the Aerospace and Defense industry and 24.3% growth in the Industrials industry, which represent our three largest industries. Growth in the Oil & Gas industry was led by strong turnaround activity, which is expected to continue into the first quarter of fiscal 2024. Revenue in the Company’s other industries, primarily Power Generation, was down from the prior year period primarily due to the completion of certain projects.

Fourth quarter 2023 gross profit increased 5.3%, although gross profit margin was down compared to the year ago period. Gross profit improved from the increase in revenues, while gross profit margin decreased due to an unfavorable sales mix and higher employee benefit credits in the prior year period.

Selling, general and administrative expenses (“SG&A”) in the fourth quarter of 2023 were $42.9 million, up 1.7% from the year ago period, due to higher foreign currency exchange losses and other discrete items, offset by savings associated with Project Phoenix actions and other cost reduction measures. Beginning in the first quarter of 2024, the Company expects SG&A to be significantly below comparable year levels due to Project Phoenix actions completed in 2023. The Company anticipates that SG&A will reduce to approximately 21% of full year 2024 revenue, from 23.6% in full year 2023.

The Company reported a quarterly net loss of $2.5 million, or $0.08 loss per share, which included $6.3 million of reorganization and related costs and $1.2 million of foreign currency exchange losses.

Net income excluding special items (non-GAAP) was $2.9 million, or $0.10 per share, for the fourth quarter of 2023, compared to $0.09 per share in the prior year period.

Adjusted EBITDA was $19.2 million in the fourth quarter of 2023 compared to $15.7 million in the prior year, an increase of 22.0%.

Highlights for Full Year 2023*

  • Revenue of $705.5 million, an increase of 2.6% and exceeding the high end of the Company’s revised Guidance
  • Gross profit of $203.8 million, with gross profit margin of 28.9%, an increase of 10 basis points due to improved revenue mix for the year, partially offset by higher employee benefit credits in the prior year period
  • SG&A of $166.7 million, up marginally, less than 1%, due to higher foreign currency exchange losses and other discrete items, which offset the savings associated with our Project Phoenix initiatives
  • Net loss of $17.5 million, or ($0.58) per share, primarily due to reorganization and other costs of $12.3 million and a $13.8 million non-cash goodwill impairment charge
  • Adjusted EBITDA of $65.8 million, an increase of 13.2% and in line with the Company’s revised Guidance

*    All comparisons are consolidated and versus the equivalent prior year period, unless otherwise noted.

For the full year, revenue increased 2.6%. Revenue growth was primarily driven by a 7.3% increase in the Oil and Gas industry, with growth in all sub-categories of Upstream, Midstream, and Downstream in addition to a 10.3% increase in the Industrials industry. These increases were partially offset by a decrease in revenue in the Power Generation industry due the completion of certain contracts and declines in Other Process Industries and Aerospace & Defense. Aerospace and Defense revenue decreased compared to the prior full year period but rebounded with robust growth during the fourth quarter of 2023.

For the full year 2023, gross profit increased $5.6 million, or 2.8%, with gross profit margin of 28.9%, a slight increase from 28.8% in the prior year. On a full year basis in 2023, SG&A was essentially flat. Net loss was $17.5 million for the full year 2023, compared to net income of $6.5 million in 2022. Adjusted EBITDA was $65.8 million, up 13.2% from $58.2 million in 2022.

Cash Flow and Balance Sheet
The Company generated $26.7 million of net cash from operating activities in 2023, compared to $26.4 million in 2022. Free cash flow was $3.1 million for the year ended December 31, 2023, compared to $13.0 million in the prior year. The Company’s decreased cash flow in 2023 was primarily attributable to a significant increase in capital expenditures during the current year of $10.2 million as compared to 2022. The Company is intently focused on organic growth investments via strategic capital expenditures and improved commercial functions, in order to foster revenue growth in expanding areas including Aerospace shop laboratories and Data Analytical Solutions.

The Company’s gross debt was $190.4 million as of December 31, 2023, compared to $191.3 million as of December 31, 2022 and $193.9 million as of September 30, 2023.

Reorganization and Other
For the fourth quarter of 2023, the Company recorded $6.3 million of reorganization costs related to on-going efficiency and productivity initiatives, primarily related to overhead cost savings achieved via Project Phoenix. For the fourth quarter of 2023, these charges included costs associated with the separation of the Company’s former President and CEO, professional fees and certain restructuring charges associated with changes made in the Company’s organizational structure. For the year ended December 31, 2023, the Company recorded $12.3 million of total reorganization costs.

Refer to the Company’s press release associated with Project Phoenix released on November 2, 2023 for additional details associated with this important initiative.

Preliminary 2024 Outlook
The Company reiterates the preliminary guidance released in conjunction with the release of its financial results for the third quarter of 2023. For 2024, the Company anticipates full year revenue between $725-$750 million and Adjusted EBITDA between $84-$89 million. The Company additionally expects to generate Free Cash Flow of between $34-$38 million. This outlook for 2024 includes approximately $20 million in incremental benefit from savings associated with Project Phoenix initiatives in 2024.

Mr. Stamatakis concluded, “I am extremely encouraged by the strong early returns from the Project Phoenix related actions. The increased discipline and accountability implemented throughout the organization in connection with Project Phoenix have resulted in an increased focus on achieving the goals we have set for revenue growth, efficiency improvements and increased profitability. We are now firmly set on a course to achieve continuous improvement, further integrate Data Analytical Solutions, and uncover other opportunities where our proprietary technologies and extensive knowledge and know-how can solve problems for our customers and create value for our shareholders.”

Conference Call
In connection with this release, MISTRAS will hold a conference call on March 7, 2024, at 9:00 a.m. (Eastern).
To listen to the live webcast of the conference call, visit the Investor Relations section of MISTRAS Group’s website at www.mistrasgroup.com
Note there is a new process to participate in the live question and answer session. Individuals wishing to participate may preregister at: https://register.vevent.com/register/BIe6bb24671aee4266a3bd30d29905a100
Upon registering, a dial-in number and unique PIN will be provided to join the conference call. Following the conference call, an archived webcast of the event will be available for one year by visiting the Investor Relations section of MISTRAS Group’s website.

About MISTRAS Group, Inc. – One Source for Asset Protection Solutions®
MISTRAS Group, Inc. (NYSE: MG) is a leading “one source” multinational provider of integrated technology-enabled asset protection solutions, helping to maximize the safety and operational uptime for civilization’s most critical industrial and civil assets.

Backed by an innovative, data-driven asset protection portfolio, proprietary technologies, strong commitment to Environmental, Social, and Governance (ESG) initiatives, and a decades-long legacy of industry leadership, MISTRAS leads clients in the oil and gas, aerospace and defense, renewable and nonrenewable power, civil infrastructure, and manufacturing industries towards achieving operational and environmental excellence. By supporting these organizations that help fuel our vehicles and power our society; inspecting components that are trusted for commercial, defense, and space craft; building real-time monitoring equipment to enable safe travel across bridges; and helping to propel sustainability, MISTRAS helps the world at large.

MISTRAS enhances value for its clients by integrating asset protection throughout supply chains and centralizing integrity data through a suite of Industrial IoT-connected digital software and monitoring solutions. The company’s core capabilities also include non-destructive testing field and in-line inspections enhanced by advanced robotics, laboratory quality control and assurance testing, sensing technologies and NDT equipment, asset and mechanical integrity engineering services, and light mechanical maintenance and access services.

For more information about how MISTRAS helps protect civilization’s critical infrastructure and the environment, visit https://www.mistrasgroup.com/.

MEDIA CONTACT:
Nestor S. Makarigakis
Group Vice-President of Marketing and Communications
+1 (609) 716-4000 | marcom@mistrasgroup.com

Forward-Looking and Cautionary Statements
Certain statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our 2024 outlook, guidance, costs savings and other benefits we expect to realize from Project Phoenix and actions that we expect or seek to take in furtherance of our strategies and activities to enhance our financial results and future growth. Such forward-looking statements relate to MISTRAS’ financial results and estimates, products and services, business model, Project Phoenix, strategy, growth opportunities, profitability and competitive position, and other matters. 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. A list, description and discussion of these and other risks and uncertainties can be found in the “Risk Factors” section of the Company’s 2022 Annual Report on Form 10-K dated March 15, 2023, as updated by our reports on Form 10-Q and Form 8-K. 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 Financial Measures
In addition to financial information prepared in accordance with generally accepted accounting principles in the U.S. (GAAP), this press release also contains adjusted financial measures that are not prepared in accordance with GAAP and that we believe provide investors and management with supplemental information relating to operating performance and trends that facilitate comparisons between periods and with respect to trends and projected information. The term “Adjusted EBITDA” used in this release is a financial measurement not calculated in accordance with GAAP and is defined by the Company as net income attributable to MISTRAS Group, Inc. plus: interest expense, provision for income taxes, depreciation and amortization, share-based compensation expense, certain acquisition related costs (including transaction due diligence costs and adjustments to the fair value of contingent consideration), foreign exchange (gain) loss, non-cash impairment charges, reorganization and related charges and, if applicable, certain additional special items which are noted. A reconciliation of Adjusted EBITDA to Net Income (Loss) as computed under GAAP is set forth in a table attached to this press release. The Company also uses the term “net debt”, a non-GAAP financial measurement the Company defines as the sum of the current and long-term portions of long-term debt, less cash and cash equivalents and the term “free cash flow”, a non-GAAP financial measurement the Company defines as cash provided by operating activities less capital expenditures (which is classified as an investing activity). A reconciliation of these non-GAAP financial measurements to GAAP are also set forth in tables attached to this press release. In the tables attached is also a table reconciling “Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before Special Items (non-GAAP)”, “Net Loss (GAAP) and Diluted EPS (GAAP) to Net Loss Excluding Special Items (non-GAAP) and Diluted EPS Excluding Special Items (non-GAAP)” which reconciles the non-GAAP amounts to the GAAP financial measurement. Each of these non-GAAP financial measurements has material limitations as a performance or liquidity measure and should not be considered alternatives to Net Income (Loss) or any other measurements derived in accordance with GAAP. Because Income (loss) from operations before special items and other non-GAAP financial measurements used in this press release may not be calculated in the same manner by all companies, these measurements may not be comparable to other similarly-titled measurements used by other companies.

 
Mistras Group, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(in thousands, except share and per share data)
 
 December 31,
  2023   2022 
ASSETS   
Current Assets   
Cash and cash equivalents$17,646  $20,488 
Accounts receivable, net 132,847   123,657 
Inventories 15,283   13,556 
Prepaid expenses and other current assets 14,580   10,181 
Total current assets 180,356   167,882 
Property, plant and equipment, net 80,972   77,561 
Intangible assets, net 43,994   49,015 
Goodwill 187,354   199,635 
Deferred income taxes 2,316   779 
Other assets 39,784   40,032 
Total Assets$534,776  $534,904 
    
LIABILITIES AND EQUITY   
Current Liabilities   
Accounts payable$17,032  $12,532 
Accrued expenses and other current liabilities 84,331   77,844 
Current portion of long-term debt 8,900   7,425 
Current portion of finance lease obligations 5,159   4,201 
Income taxes payable 1,101   1,726 
Total current liabilities 116,523   103,728 
Long-term debt, net of current portion 181,499   183,826 
Obligations under finance leases, net of current portion 11,261   10,045 
Deferred income taxes 2,552   6,283 
Other long-term liabilities 32,438   32,273 
Total Liabilities$344,273  $336,155 
    
Commitments and contingencies   
    
Equity   
Preferred stock, 10,000,000 shares authorized     
Common stock, $0.01 par value, 200,000,000 shares authorized, 30,597,633 and 29,895,487 shares issued 305   298 
Additional paid-in capital 247,165   243,031 
Accumulated Deficit (28,942)  (11,489)
Accumulated other comprehensive loss (28,336)  (33,390)
Total Mistras Group, Inc. stockholders’ equity 190,192   198,450 
Non-controlling interests 311   299 
Total Equity 190,503   198,749 
Total Liabilities and Equity$534,776  $534,904 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income (Loss)
(in thousands, except per share data)
 
 For the quarter ended
December 31,
 For the year ended
December 31,
  2023   2022   2023   2022 
        
Revenue$182,073  $168,218  $705,473  $687,373 
Cost of revenue 122,365   111,720   477,671   466,567 
Depreciation 6,081   5,559   23,995   22,633 
Gross profit 53,627   50,939   203,807   198,173 
Selling, general and administrative expenses 42,914   42,168   166,749   166,400 
Bad debt provision for troubled customers, net of recoveries    (247)     42 
Reorganization and other costs 6,252   130   12,269   195 
Legal settlement and litigation charges (benefit), net 908      1,058   (994)
Goodwill Impairment charges       13,799    
Research and engineering 295   471   1,723   1,994 
Depreciation and amortization 2,548   2,603   10,104   10,661 
Acquisition-related expense, net 4   12   9   76 
Income (loss) from operations 706   5,802   (1,904)  19,799 
Interest expense 4,668   3,713   16,761   10,505 
Income (loss) before provision (benefit) for income taxes (3,962)  2,089   (18,665)  9,294 
Provision (benefit) for income taxes (1,449)  (774)  (1,220)  2,720 
Net income (loss) (2,513)  2,863   (17,445)  6,574 
Less: net income attributable to noncontrolling interests, net of taxes 1   21   8   75 
Net income (loss) attributable to Mistras Group, Inc.$(2,514) $2,842  $(17,453) $6,499 
Earnings per common share       
Basic$(0.08) $0.09  $(0.58) $0.22 
Diluted$(0.08) $0.09  $(0.58) $0.21 
Weighted average common shares outstanding:       
Basic 30,473   29,983   30,330   29,901 
Diluted 30,473   30,258   30,330   30,229 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Operating Data by Segment
(in thousands)
 
 For the quarter ended
December 31,
 For the year ended
December 31,
  2023   2022   2023   2022 
Revenue       
North America$148,035  $138,085  $579,330  $573,336 
International 33,750   28,984   124,414   112,425 
Products and Systems 3,089   4,061   12,986   12,727 
Corporate and eliminations (2,801)  (2,912)  (11,257)  (11,115)
 $182,073  $168,218  $705,473  $687,373 
        
        
 For the quarter ended
December 31,
 For the year ended
December 31,
  2023   2022   2023   2022 
Gross profit       
North America$42,872  $40,701  $163,960  $159,049 
International 9,363   8,267   33,610   33,591 
Products and Systems 1,684   1,976   6,457   5,490 
Corporate and eliminations (294)  (5)  (220)  43 
 $53,625  $50,939  $203,807  $198,173 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Revenues by Category
(in thousands)
 
Revenue by industry was as follows:
 
Three Months Ended December 31, 2023North America International Products Corp/Elim Total
Oil & Gas$97,558  $10,324  $72  $  $107,954 
Aerospace & Defense 14,484   4,817   11      19,312 
Industrials 11,825   8,018   437      20,280 
Power Generation & Transmission 5,764   1,769   578      8,111 
Other Process Industries 8,129   3,889   39      12,057 
Infrastructure, Research & Engineering 3,924   2,773   409      7,106 
Petrochemical 3,189   329         3,518 
Other 3,162   1,831   1,543   (2,801)  3,735 
Total$148,035  $33,750  $3,089  $(2,801) $182,073 

Three Months Ended December 31, 2022North America International Products Corp/Elim Total
Oil & Gas$86,474  $8,636  $123  $  $95,233 
Aerospace & Defense 12,369   4,308   68      16,745 
Industrials 9,668   5,835   812      16,315 
Power Generation & Transmission 8,619   1,799   624      11,042 
Other Process Industries 8,561   3,716   5      12,282 
Infrastructure, Research & Engineering 4,658   1,930   1,505      8,093 
Petrochemical 5,304   123         5,427 
Other 2,432   2,637   924   (2,912)  3,081 
Total$138,085  $28,984  $4,061  $(2,912) $168,218 

Year ended December 31, 2023North America International Products Corp/Elim Total
Oil & Gas$379,221  $36,615  $159  $  $415,995 
Aerospace & Defense 56,000   20,711   286      76,997 
Industrials 42,518   26,292   1,773      70,583 
Power Generation and Transmission 23,598   6,609   3,767      33,974 
Other Process Industries 33,035   14,456   112      47,603 
Infrastructure, Research & Engineering 16,620   9,320   3,168      29,108 
Petrochemical 13,216   1,216         14,432 
Other$15,122  $9,195  $3,721  $(11,257) $16,781 
Total$579,330  $124,414  $12,986  $(11,257) $705,473 

Year ended December 31, 2022North America International Products Corp/Elim Total
Oil & Gas$356,763  $30,654  $335  $  $387,752 
Aerospace & Defense 61,475   18,763   314      80,552 
Industrials 38,197   23,703   2,083      63,983 
Power Generation and Transmission 31,197   8,304   2,603      42,104 
Other Process Industries 40,778   14,021   28      54,827 
Infrastructure, Research & Engineering 15,283   7,946   3,994      27,223 
Petrochemical 15,360   536         15,896 
Other 14,283   8,498   3,370   (11,115)  15,036 
Total$573,336  $112,425  $12,727  $(11,115) $687,373 


Mistras Group, Inc. and Subsidiaries
Unaudited Revenues by Category (continued)
(in thousands)

The Company has retrospectively reclassified certain Oil and Gas sub-category revenues for each quarterly period in 2022 in order to conform the classification with the current year presentation. Total Oil and Gas sub-category revenues were unchanged in total in each quarterly period and for the full year ended December 31, 2022. The table below presents the reclassified balances for each quarterly period in the prior year.

 2022 Quarterly Revenues
 Three months ended
March 31,
 Three months ended
June 30,
 Three months ended
September 30,
 Three months ended
December 31,
Oil and Gas Revenue by sub-category       
Upstream$36,397  $38,051  $35,173  $36,435 
Midstream 20,427   27,153   25,885   23,540 
Downstream 37,399   36,061   35,973   35,258 
Total$94,223  $101,265  $97,031  $95,233 

Revenue by Oil & Gas Sub-category was as follows:

 Three months ended December 31, Year ended December 31,
  2023   2022   2023   2022 
Oil and Gas Revenue by sub-category       
Upstream$40,887  $36,435  $157,828  $146,056 
Midstream 26,539   23,540   101,278   97,005 
Downstream 40,528   35,258   156,889   144,691 
Total$107,954  $95,233  $415,995  $387,752 

Consolidated Revenue by type was as follows:

 For the quarter ended December 31,  For the year ended December 31,
  2023   2022   2023   2022 
        
Field Services$121,932  $109,666  $470,433  $455,051 
Shop Laboratories 15,972   13,276   58,188   48,809 
Data Analytical Solutions 19,542   16,624   72,458   62,410 
Other 24,627   28,652   104,394   121,103 
Total$182,073  $168,218  $705,473  $687,373 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Segment and Total Company Income (Loss) from Operations (GAAP) to Income (Loss) from Operations before
Special Items (non-GAAP)
(in thousands)
 
 For the quarter ended
December 31,
 For the year ended 
December 31,
  2023   2022   2023   2022 
North America:       
Income from operations (GAAP)$15,451  $14,301  $55,170  $49,616 
Bad debt provision for troubled customers, net of recoveries    (247)     42 
Reorganization and other costs 386   59   960   99 
Legal settlement and insurance (recoveries) charges, net 908      1,058   (841)
Acquisition-related expense, net          45 
Income before special items (unaudited, non-GAAP)$16,745  $14,113  $57,188  $48,961 
        
International:       
Income (loss) from operations (GAAP)$802  $888  $(12,229) $3,566 
Goodwill Impairment charges       13,799    
Reorganization and other costs 123   71   351   (43)
Income before special items (unaudited, non-GAAP)$925  $959  $1,921  $3,523 
        
Products and Systems:       
Income (loss) from operations (GAAP)$345  $342  $267  $(992)
Reorganization and other costs 193      382    
Income (loss) before special items (unaudited, non-GAAP)$538  $342  $649  $(992)
        
Corporate and Eliminations:       
Loss from operations (GAAP)$(15,892) $(9,729) $(45,112) $(32,391)
Legal settlement and insurance (recoveries) charges, net          (153)
Loss on debt modification          693 
Reorganization and other costs 5,550      10,576   139 
Acquisition-related expense, net 4   12   9   31 
Loss before special items (unaudited, non-GAAP)$(10,338) $(9,717) $(34,527) $(31,681)
        
Total Company       
Income (loss) from operations (GAAP)$706  $5,802  $(1,904) $19,799 
Goodwill Impairment charges       13,799    
Bad debt provision for troubled customers, net of recoveries    (247)     42 
Reorganization and other costs 6,252   130   12,269   195 
Legal settlement and insurance (recoveries) charges, net 908      1,058   (994)
Loss on debt modification          693 
Acquisition-related expense, net 4   12   9   76 
Income before special items (unaudited, non-GAAP)$7,870  $5,697  $25,231  $19,811 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Summary Cash Flow Information
(in thousands)
 
 For the quarter ended
December 31,
 For the year ended
December 31,
  2023   2022   2023   2022 
Net cash provided by (used in):       
Operating activities$16,064  $15,875  $26,748  $26,406 
Investing activities (6,963)  (3,361)  (22,133)  (12,238)
Financing activities (5,867)  (11,570)  (7,706)  (16,323)
Effect of exchange rate changes on cash 1,660   1,460   249   (1,467)
Net change in cash and cash equivalents$4,894  $2,404  $(2,842) $(3,622)

 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)
(in thousands)
 
 For the quarter ended
December 31,
 For the year ended
December 31,
  2023   2022   2023   2022 
        
Net cash provided by operating activities (GAAP)$16,064  $15,875  $26,748  $26,406 
Less:       
Purchases of property, plant and equipment (6,451)  (3,541)  (20,854)  (12,591)
Purchases of intangible assets (927)  (245)  (2,795)  (825)
Free cash flow (non-GAAP)$8,686  $12,089  $3,099  $12,990 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Gross Debt (GAAP) to Net Debt (non-GAAP)
(in thousands)
 
  For the year ended
December 31,
   2023   2022 
     
Current portion of long-term debt $8,900  $7,425 
Long-term debt, net of current portion  181,499   183,826 
Total Gross Debt (GAAP)  190,399   191,251 
Less: Cash and cash equivalents  (17,646)  (20,488)
Total Net Debt (non-GAAP) $172,753  $170,763 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP)
(in thousands)
 
 For the quarter ended
December 31,
 For the year ended
December 31,
  2023   2022   2023   2022 
      
Net income (loss)$(2,513) $2,863  $(17,445) $6,574 
Less: Net income attributable to noncontrolling interests, net of taxes 1   21   8   75 
Net income (loss) attributable to Mistras Group, Inc.$(2,514) $2,842  $(17,453) $6,499 
Interest expense 4,668   3,713   16,761   10,505 
Provision (benefit) for income taxes (1,449)  (774)  (1,220)  2,720 
Depreciation and amortization 8,629   8,162   34,099   33,294 
Share-based compensation expense 1,498   1,169   5,147   5,335 
Goodwill Impairment charges       13,799    
Reorganization and other related costs, net 6,252   130   12,269   195 
Legal settlement and insurance recoveries, net 908      1,058   (994)
Acquisition-related expense, net 4   12   9   76 
Loss on debt modification          693 
Bad debt provision for troubled customers, net of recoveries    (247)     42 
Foreign exchange (gain) loss 1,182   709   1,331   (215)
Adjusted EBITDA$19,178  $15,716  $65,800  $58,150 

 
Mistras Group, Inc. and Subsidiaries
Unaudited Reconciliation of
Net Income (Loss) (GAAP) and Diluted EPS (GAAP) to Net Income Excluding Special Items (non-GAAP)
and Diluted EPS Excluding Special Items (non-GAAP)
(tabular dollars in thousands, except per share data)
 
 For the quarter ended December 31, For the year ended December 31,
  2023   2022   2023   2022 
Net income (loss) attributable to Mistras Group, Inc. (GAAP)$(2,514) $2,842  $(17,453) $6,499 
Bad debt provision for troubled customers, net of recoveries    (247)     42 
Goodwill Impairment charges       13,799    
Reorganization and other related costs, net 6,252   130   12,269   195 
Loss on debt modification          693 
Legal settlement and insurance recoveries, net 908      1,058   (994)
Acquisition-related expense, net 4   12   9   76 
Special items total 7,164   (105)  27,135   12 
Tax impact on special items (1,787)  25   (3,256)  (5)
Special items, net of tax$5,377  $(80) $23,879  $7 
Net income attributable to Mistras Group, Inc. Excluding Special Items (non-GAAP)$2,863  $2,762  $6,426  $6,506 
        
Diluted EPS (GAAP)$(0.08) $0.09  $(0.58) $0.21 
Special items, net of tax 0.18      0.79    
Diluted EPS Excluding Special Items (non-GAAP)$0.10  $0.09  $0.21  $0.21 

 

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.