PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for Q1 2023, covering financial position, operations, and cash flows, with detailed notes Condensed Consolidated Statements of Operations (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (In thousands) | Q1 2022 (In thousands) | | :--- | :--- | :--- | | **Revenues** | $131,428 | $134,680 | | **Loss from Operations** | $(9,975) | $(7,636) | | **Net Loss** | $(14,719) | $(7,536) | | **Net Loss Attributable to Common Stockholders** | $(18,819) | $(11,636) | | **Net Loss Per Share (Basic and Diluted)** | $(0.63) | $(0.39) | Condensed Consolidated Statements of Financial Position (As of March 31, 2023) | Metric | March 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $231,007 | $247,928 | | **Total Assets** | $783,177 | $791,914 | | **Total Current Liabilities** | $102,331 | $111,442 | | **Total Liabilities** | $320,144 | $325,799 | | **Total Stockholders' Equity** | $310,105 | $313,187 | Condensed Consolidated Statements of Cash Flows (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (In thousands) | Q1 2022 (In thousands) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $3,029 | $(18,328) | | **Net cash used in investing activities** | $(11,727) | $(15,005) | | **Net cash used in financing activities** | $(4,654) | $(19,715) | | **Change in Cash and Cash Equivalents** | $(13,352) | $(53,048) | [Note 1: Business Description and Basis of Presentation](index=7&type=section&id=1.%20DESCRIPTION%20OF%20THE%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) Montrose Environmental Group, Inc. operates through three segments: Assessment, Measurement, and Remediation, serving diverse clients - The company operates through three primary segments: **Assessment, Permitting and Response** (consulting and emergency response), **Measurement and Analysis** (testing of air, water, soil), and **Remediation and Reuse** (engineering and implementation of treatment solutions)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Note 3: Revenues and Accounts Receivable](index=9&type=section&id=3.%20REVENUES%20AND%20ACCOUNTS%20RECEIVABLE) Details revenue streams, contract assets and liabilities, and remaining unsatisfied performance obligations, totaling approximately **$98.2 million** as of March 31, 2023 - As of March 31, 2023, the company had approximately **$98.2 million** in remaining unsatisfied performance obligations, with **$79.1 million** expected to be recognized as revenue within a year[30](index=30&type=chunk) Contract Balances | Balance | March 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | Contract assets | $53,563 | $52,403 | | Contract liabilities | $10,932 | $18,549 | [Note 7: Business Acquisitions](index=14&type=section&id=7.%20BUSINESS%20ACQUISITIONS) Details strategic acquisitions in Q1 2023, including Frontier Analytical Laboratories and EAI for **$6.2 million**, and outlines potential future earn-out payments - In Q1 2023, the company acquired Frontier Analytical Laboratories and Environmental Alliance, Inc. (EAI) for a total purchase price of **$6.2 million**, funded through cash on hand[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The company may be required to make up to **$9.5 million** in aggregate earn-out payments between 2023 and 2026 related to various business acquisitions[50](index=50&type=chunk) - Transaction costs related to business combinations totaled **$0.8 million** for the three months ended March 31, 2023[51](index=51&type=chunk) [Note 12: Debt](index=19&type=section&id=12.%20DEBT) Details total debt of **$162.5 million** as of March 31, 2023, primarily from the 2021 Credit Facility, with a **1.4x** leverage ratio and covenant compliance Debt Composition (As of March 31, 2023) | Component | Amount (In thousands) | | :--- | :--- | | Term loan facility | $164,062 | | Less deferred debt issuance costs | $(1,595) | | **Total debt** | **$162,467** | - The weighted average interest rate on the 2021 Credit Facility was **6.1%** for Q1 2023, up from **1.8%** in Q1 2022[86](index=86&type=chunk) - As of March 31, 2023, the company's consolidated total leverage ratio was **1.4 times**, and it was in compliance with all covenants under the 2021 Credit Facility[84](index=84&type=chunk) [Note 15: Convertible and Redeemable Series A-2 Preferred Stock](index=25&type=section&id=15.%20CONVERTIBLE%20AND%20REDEEMABLE%20SERIES%20A-2%20PREFERRED%20STOCK) Details 17,500 shares of Series A-2 Preferred Stock with a **9.0%** dividend rate, **$4.1 million** paid in Q1 2023, convertible from April 2024 - The company paid dividends of **$4.1 million** on its Series A-2 Preferred Stock during the three months ended March 31, 2023[100](index=100&type=chunk) - The preferred stock becomes convertible into common stock starting on the fourth anniversary of issuance at a **15.0%** discount to the market price, with certain volume limitations[101](index=101&type=chunk) [Note 18: Segment Information](index=32&type=section&id=18.%20SEGMENT%20INFORMATION) Provides a breakdown of revenues and Segment Adjusted EBITDA for the three reportable segments, with total operating segment revenue of **$131.4 million** in Q1 2023 Segment Revenues and Adjusted EBITDA (Q1 2023 vs Q1 2022) | Segment | Q1 2023 Revenues (thousands) | Q1 2023 Adj. EBITDA (thousands) | Q1 2022 Revenues (thousands) | Q1 2022 Adj. EBITDA (thousands) | | :--- | :--- | :--- | :--- | :--- | | Assessment, Permitting and Response | $52,214 | $14,266 | $45,600 | $9,623 | | Measurement and Analysis | $42,527 | $6,387 | $39,761 | $6,322 | | Remediation and Reuse | $36,687 | $5,278 | $49,319 | $7,993 | | **Total Operating Segments** | **$131,428** | **$25,931** | **$134,680** | **$23,938** | - During Q1 2023, the company decided to sell a non-core specialty service line within its Measurement and Analysis segment, referred to as the 'Discontinuing Specialty Lab'[130](index=130&type=chunk) [Note 21: Subsequent Events](index=34&type=section&id=21.%20SUBSEQUENT%20EVENTS) Details post-quarter acquisitions, including GreenPath Energy LTD for **CAD $20.1 million** and an agreement to acquire Matrix Solutions, Inc. for **CAD $65.2 million** - On May 1, 2023, the company acquired GreenPath Energy LTD, a fugitive emissions management firm, for **CAD $20.1 million**[136](index=136&type=chunk)[138](index=138&type=chunk) - The company signed an agreement to acquire Matrix Solutions, Inc., an environmental and engineering consulting company, for **CAD $65.2 million**, with the deal expected to close in Q2 2023[137](index=137&type=chunk)[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, noting a **2.4%** revenue decrease to **$131.4 million** and an increased net loss to **$14.7 million**, influenced by service changes and higher expenses - Revenues for Q1 2023 decreased by **2.4%** to **$131.4 million** from **$134.7 million** in Q1 2022, primarily due to significantly lower revenue from COVID-19 services (**$3.8 million** in Q1'23 vs **$21.4 million** in Q1'22) and project timing in the Remediation and Reuse segment[172](index=172&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **18.7%** to **$49.6 million**, driven by a shift of certain employee roles from direct cost to overhead, higher labor costs, and increased stock compensation[181](index=181&type=chunk) - The company defines organic growth as the change in revenues excluding revenues from CTEH, acquisitions for the first twelve months, and businesses held for sale or discontinued[158](index=158&type=chunk) - Net cash provided by operating activities was **$3.0 million** in Q1 2023, a significant improvement from the **$18.3 million** used in Q1 2022, which included a **$19.5 million** contingent consideration payment[207](index=207&type=chunk) Segment Revenue Performance (Q1 2023 vs Q1 2022) | Segment | Q1 2023 Revenue (millions) | Q1 2022 Revenue (millions) | Change (%) | | :--- | :--- | :--- | :--- | | Assessment, Permitting and Response | $52.2 | $45.6 | +14.5% | | Measurement and Analysis | $42.5 | $39.8 | +7.0% | | Remediation and Reuse | $36.7 | $49.3 | -25.6% | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risks from interest rate fluctuations and inflation, noting a **1.0%** interest rate change impacts pre-tax income by **$0.6 million** annually - A **1.0%** increase or decrease in interest rates on the company's variable rate debt would impact annual income before taxes by approximately **$0.6 million**[222](index=222&type=chunk) - The company has experienced higher labor, travel, and other direct costs due to inflation but has been raising prices on contracts to offset these effects Management does not believe inflation will have a material long-term effect on the business[223](index=223&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[224](index=224&type=chunk) - No changes occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[225](index=225&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any litigation expected to have a material adverse effect on its operations or financial position - The company states it is not party to any litigation that would be reasonably expected to have a material adverse effect on its financial results[229](index=229&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the company's risk factors from those disclosed in its 2022 Annual Report on Form 10-K - No material changes have occurred to the risk factors previously disclosed in the 2022 Form 10-K[230](index=230&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[231](index=231&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39394 Montrose Environmental Group, Inc. (Exact name of Registrant as specified in its Charter) Delaware 46-4195044 (State or other j ...

Call Start: 08:30 Call End: 09:23 January 1, 0000 ET Q4 2022 Earnings Conference Call March 01, 2023, 08:30 ET Company Participants Rodny Nacier - ICR Vijay Manthripragada - President, CEO & Director Allan Dicks - CFO Conference Call Participants Christopher Grenga - Needham & Company Timothy Mulrooney - William Blair & Company David Ridley-Lane - Bank of America Merrill Lynch Stephanie Yee - JPMorgan Chase & Co. Operator Greetings, and welcome to the Montrose Environmental Group, Inc. Fourth Quarter 2022 E ...

Financial Data and Key Metrics Changes - Third quarter revenues were $130.3 million, a decrease from $132.6 million in the prior year quarter, primarily due to lower COVID-19 revenue from CTEH, which dropped by $31.1 million [27] - Year-to-date revenues increased by 0.6% to $404.9 million, driven by organic growth in Measurement and Analysis and Remediation and Reuse segments, along with positive contributions from acquisitions [28] - Consolidated adjusted EBITDA for the third quarter was $17.1 million, or 13.1% of revenue, compared to $20.3 million, or 15.3% of revenue in the prior year quarter [29] Business Line Data and Key Metrics Changes - In the Assessment, Permitting and Response segment, revenue decreased to $46.4 million, with adjusted EBITDA at $9.8 million, impacted by lower COVID-19-related services from CTEH [31] - The Measurement and Analysis segment saw a revenue increase of 12.9% to $43.8 million, primarily due to organic growth and acquisitions [33] - The Remediation and Reuse segment experienced a 32% year-over-year revenue increase to $40.1 million, driven by demand for PFAS Water Treatment services [34] Market Data and Key Metrics Changes - The company noted strong demand across most service lines, particularly in PFAS Water Treatment, greenhouse gas measurement, and renewable energy [10] - Regulatory momentum, including EPA proposals regarding PFAS and methane emissions, is expected to create tailwinds across the company's segments [15][16] Company Strategy and Development Direction - The company continues to consolidate its fragmented industry, completing four acquisitions in 2022, with a focus on supporting organic revenue growth [12] - The strategy includes enhancing capabilities in environmental consulting and testing services, with expectations for an acceleration in acquisition cadence in 2023 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the annual outlook, emphasizing that the business should be evaluated on an annual basis due to the nature of project timing [30] - The company anticipates full-year 2022 revenue in the range of $535 million to $555 million, narrowing from previous guidance [42] Other Important Information - The company reported strong cash flow from operations of $8.2 million year-to-date, with a liquidity position of $93.6 million in cash and $125 million available on its revolving credit facility [39] - The leverage ratio as of September 30, 2022, was at 1.2x, indicating a strong balance sheet [40] Q&A Session Summary Question: Was third quarter revenue in line with internal expectations? - Management confirmed that the third quarter revenue was in line with internal expectations, despite being below consensus [49][50] Question: What is expected for EBITDA margins in the fourth quarter? - Management indicated expectations for sequential margin improvement due to successful pricing initiatives and recovery from earlier disruptions [53] Question: What system challenges has the company faced as it grows? - Management highlighted the implementation of a new ERP system to handle increased complexity and project-oriented work, which has been operating well [55][56] Question: How does labor availability and wage inflation impact pricing? - Management acknowledged tight labor market conditions but expressed confidence in their ability to manage labor costs through disciplined pricing strategies [60][65] Question: Have there been any project delays due to the current environment? - Management reported no significant project delays, noting that natural scheduling variances occur but overall demand remains strong [67] Question: What is the growth trajectory for PFAS and biogas services? - Management indicated strong growth in PFAS Water Treatment and biogas services, with expectations for continued demand driven by regulatory changes [76][78]

Montrose Environmental Group, Inc. (NYSE:MEG) Q2 2022 Results Earnings Conference Call August 9, 2022 8:30 AM ET Company Participants Rodny Nacier - Investor Relations Vijay Manthripragada - President and Chief Executive Officer Allan Dicks - Chief Financial Officer Conference Call Participants Tim Mulrooney - William Blair Sabrina Abrams - Bank of America Merrill Lynch Jim Ricchiuti - Needham & Company Operator Ladies and gentlemen, greetings and welcome to the Montrose Environmental Group, Inc. Second Qua ...

Second Quarter 2022 Earnings Call August 9, 2022 Safe Harbor Statements contained herein and in the accompanying oral presentation contain 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. Forward-looking statements may be identified by the use of words such as "intend," "expect", and "may", and other similar expressions that predict or indicate future events or that are not statements o ...

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial information, management's discussion, market risk, and controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Montrose Environmental Group, Inc., including the statements of financial position, operations and comprehensive loss, convertible and redeemable Series A-2 preferred stock and stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, revenue recognition, acquisitions, debt, equity, and segment information for the periods ended June 30, 2022 and 2021 [Unaudited Condensed Consolidated Statements of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) The company's financial position shows a decrease in total assets and liabilities from December 2021 to June 2022 | ASSETS (in thousands) | June 30, 2022 | December 31, 2021 | | :-------------------- | :------------ | :---------------- | | Cash and restricted cash | $98,414 | $146,741 | | Accounts receivable—net | $87,676 | $98,513 | | Contract assets | $47,740 | $40,139 | | Total current assets | $244,236 | $293,858 | | Goodwill | $315,626 | $311,944 | | Other intangible assets—net | $150,684 | $160,997 | | TOTAL ASSETS | $787,743 | $833,094 | | LIABILITIES & EQUITY (in thousands) | June 30, 2022 | December 31, 2021 | | :-------------------------------- | :------------ | :---------------- | | Accounts payable and other accrued liabilities | $59,285 | $68,936 | | Accrued payroll and benefits | $18,756 | $25,971 | | Business acquisitions contingent consideration, current | $2,814 | $31,450 | | Total current liabilities | $101,293 | $147,695 | | Long-term debt—net | $157,703 | $161,818 | | Total liabilities | $319,964 | $363,665 | | Convertible and Redeemable Series A-2 Preferred Stock | $152,928 | $152,928 | | Total stockholders' equity | $314,851 | $316,501 | | TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY | $787,743 | $833,094 | - Total assets decreased by **$45.35 million** from December 31, 2021, to June 30, 2022, primarily due to a reduction in cash and restricted cash, and accounts receivable[6](index=6&type=chunk) - Total liabilities decreased by **$43.7 million**, largely driven by a significant reduction in current business acquisitions contingent consideration[6](index=6&type=chunk) [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This statement details the company's revenues, expenses, and net loss for the three and six months ended June 30, 2022 and 2021 | (in thousands, except per share data) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUES | $139,910 | $136,224 | $274,590 | $270,041 | | COST OF REVENUES | $90,429 | $92,104 | $178,815 | $187,420 | | SELLING, GENERAL AND ADMINISTRATIVE EXPENSE | $46,456 | $27,366 | $88,263 | $52,366 | | FAIR VALUE CHANGES IN BUSINESS ACQUISITION CONTINGENCIES | $(3,510) | $12,971 | $(3,531) | $24,035 | | DEPRECIATION AND AMORTIZATION | $12,280 | $9,878 | $24,424 | $21,674 | | LOSS FROM OPERATIONS | $(5,745) | $(6,095) | $(13,381) | $(15,454) | | NET LOSS | $(7,751) | $(13,148) | $(15,287) | $(26,079) | | NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $(11,851) | $(17,248) | $(23,487) | $(34,279) |\n| NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS— BASIC AND DILUTED | $(0.40) | $(0.66) | $(0.79) | $(1.34) | - Revenues increased by **2.7%** for the three months ended June 30, 2022, and by **1.7%** for the six months ended June 30, 2022, compared to the respective prior periods[7](index=7&type=chunk) - Net loss attributable to common stockholders decreased significantly, from **$(17.2) million** to **$(11.9) million** for the three months, and from **$(34.3) million** to **$(23.5) million** for the six months, primarily due to a gain from fair value changes in business acquisition contingencies and lower interest expense[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statements of Convertible and Redeemable Series A-2 Preferred Stock and Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Convertible%20and%20Redeemable%20Series%20A-2%20Preferred%20Stock%20and%20Stockholders%27%20Equity) This statement outlines changes in convertible and redeemable preferred stock and stockholders' equity, reflecting net losses and equity transactions | (in thousands, except share data) | Convertible and Redeemable Series A-2 Preferred Stock (Amount) | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Equity | | :-------------------------------- | :----------------------------------------------------------- | :------------------------- | :------------------ | :------------------------- | | BALANCE—December 31, 2021 | $152,928 | $464,143 | $(147,678) | $316,501 | | Net loss | — | — | $(7,536) | $(7,536) | | Stock-based compensation | — | $10,425 | — | $10,425 | | Dividend payment to Series A-2 preferred shareholders | — | $(4,100) | — | $(4,100) | | Common stock issued | — | $429 | — | $429 | | Accumulated other comprehensive income | — | — | — | $45 | | BALANCE—March 31, 2022 | $152,928 | $470,897 | $(155,214) | $315,764 | | Net loss | — | — | $(7,751) | $(7,751) | | Stock-based compensation | — | $10,932 | — | $10,932 | | Dividend payment to Series A-2 preferred shareholders | — | $(4,100) | — | $(4,100) | | Common stock issued | — | $54 | — | $54 | | Accumulated other comprehensive loss | — | — | — | $(48) | | BALANCE—June 30, 2022 | $152,928 | $477,783 | $(162,965) | $314,851 | - Total stockholders' equity slightly decreased from **$316.5 million** at December 31, 2021, to **$314.9 million** at June 30, 2022, primarily due to net losses and preferred stock dividends, partially offset by stock-based compensation and common stock issuances[9](index=9&type=chunk) - The accumulated deficit increased from **$(147.7) million** to **$(163.0) million** over the six-month period, reflecting the net losses incurred[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2022 and 2021 | (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(15,287) |

Montrose Environmental Group, Inc. (NYSE:MEG) Q1 2022 Results Conference Call May 10, 2022 8:30 AM ET Company Participants Vijay Manthripragada - President, Chief Executive Officer & Director Rodny Nacier - Investor Relations Allan Dicks - Chief Financial Officer Conference Call Participants Tim Mulrooney - William Blair Emily Shu - Bank of America Chris Grenga - Needham Stephanie Yee - JPMorgan Noelle Dilts - Stifel Operator Good day, and welcome to the Montrose Environmental Group, Inc. First Quarter 2022 ...

First Quarter 2022 Earnings Call May 10, 2022 Safe Harbor Statements contained herein and in the accompanying oral presentation contain 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. Forward-looking statements may be identified by the use of words such as "intend," "expect", and "may", and other similar expressions that predict or indicate future events or that are not statements of h ...

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) This section presents the official filing information for the Quarterly Report on Form 10-Q, including registrant details and securities registered [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides key identification details for Montrose Environmental Group, Inc.'s Form 10-Q, including incorporation, executive offices, and stock exchange listing - The filing type is a Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934[2](index=2&type=chunk) - The quarterly period ended on **March 31, 2022**[2](index=2&type=chunk) - The registrant name is **Montrose Environmental Group, Inc.**[2](index=2&type=chunk) Securities Registered | Title of each class | Symbol(s) | Name of each exchange on which registered | | :------------------ | :-------- | :---------------------------------------- | | Common Stock, par value $0.000004 per share | MEG | The New York Stock Exchange | - As of May 5, 2022, **29,678,697 shares** of common stock, $0.000004 par value per share, were outstanding[4](index=4&type=chunk) [Table of Contents](index=2&type=section&id=Table%20of%20Contents) This section provides an organized listing of all chapters and sub-sections within the report [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's comprehensive financial data, including statements, notes, and management's analysis of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Montrose Environmental Group, Inc.'s unaudited condensed consolidated financial statements, including position, operations, equity, and cash flows [Unaudited Condensed Consolidated Statements of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets decreased from **$833.1 million** to **$790.2 million**, driven by lower cash and accounts receivable, with total liabilities also decreasing Key Financial Position Data (in thousands) | Metric | March 31, 2022 | December 31, 2021 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Cash and restricted cash | $93,791 | $146,741 | $(52,950) | | Accounts receivable—net | $81,650 | $98,513 | $(16,863) | | Contract assets | $51,716 | $40,139 | $11,577 | | Total current assets | $238,858 | $293,858 | $(55,000) | | Goodwill | $316,173 | $311,944 | $4,229 | | Total assets | $790,245 | $833,094 | $(42,849) | | Accounts payable and other accrued liabilities | $58,992 | $68,936 | $(9,944) | | Business acquisitions contingent consideration, current | $1,429 | $31,450 | $(30,021) | | Total current liabilities | $99,695 | $147,695 | $(48,000) | | Total liabilities | $321,553 | $363,665 | $(42,112) | | Total stockholders' equity | $315,764 | $316,501 | $(737) | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Montrose reported a net loss of **$7.5 million** for Q1 2022, an improvement from **$12.9 million** in Q1 2021, driven by lower cost of revenues and favorable contingent consideration changes Key Operations Data (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change (YoY) | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :----------- | | Revenues | $134,680 | $133,817 | $863 | | Cost of revenues | $88,386 | $95,316 | $(6,930) | | Selling, general and administrative expense | $41,807 | $25,000 | $16,807 | | Fair value changes in business acquisitions contingent consideration | $(21) | $11,064 | $(11,085) | | Loss from operations | $(7,636) | $(9,359) | $1,723 | | Net loss | $(7,536) | $(12,931) | $5,395 | | Net loss attributable to common stockholders | $(11,636) | $(17,031) | $5,395 | | Net loss per share attributable to common stockholders— Basic and Diluted | $(0.39) | $(0.68) | $0.29 | [Unaudited Condensed Consolidated Statements of Convertible and Redeemable Series A-2 Preferred Stock and Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Convertible%20and%20Redeemable%20Series%20A-2%20Preferred%20Stock%20and%20Stockholders'%20Equity) Stockholders' equity slightly decreased from **$316.5 million** to **$315.8 million**, influenced by net loss, stock-based compensation, common stock issuance, and preferred dividends Changes in Stockholders' Equity (in thousands) | Item | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | | Balance—December 31, 2021 | $316,501 | | Net loss | $(7,536) | | Stock-based compensation | $10,425 | | Dividend payment to the Series A-2 preferred shareholders | $(4,100) | | Common stock issued | $429 | | Accumulated other comprehensive income | $45 | | Balance—March 31, 2022 | $315,764 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Montrose experienced a **$53.0 million** decrease in cash in Q1 2022, with increased cash usage across operating, investing, and financing activities compared to the prior year Consolidated Statement of Cash Flows Data (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change (YoY) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net cash used in operating activities | $(18,328) | $(13,913) | $(4,415) | | Net cash used in investing activities | $(15,005) | $(7,398) | $(7,607) | | Net cash used in financing activities | $(19,715) | $(3,087) | $(16,628) | | Change in cash, cash equivalents and restricted cash | $(53,048) | $(24,398) | $(28,650) | | Cash, cash equivalents and restricted cash: End of period | $93,791 | $10,641 | $83,150 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures supporting the unaudited condensed consolidated financial statements, offering crucial context on financial reporting and operational activities [1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION](index=7&type=section&id=1.%20DESCRIPTION%20OF%20THE%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) Montrose Environmental Group, Inc. is a Delaware-formed environmental services company with approximately **80 offices** and over **2,700 employees** as of March 31, 2022, serving diverse clients through three segments - Montrose Environmental Group, Inc. was formed in November 2013 in Delaware, with approximately **80 offices** across the U.S., Canada, and Australia, and over **2,700 employees** as of March 31, 2022[14](index=14&type=chunk) - The company provides environmental services through three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Retroactive adoption of ASC 842 (Leases) effective January 1, 2021, resulted in adjustments: depreciation and amortization expense increased by **$1.0 million**, other income (expense) increased by **$0.3 million**, and net loss increased by **$1.3 million**[19](index=19&type=chunk) [2. SUMMARY OF NEW ACCOUNTING PRONOUNCEMENTS](index=7&type=section&id=2.%2