Montrose to support environmental restoration and planning work at Air Force installations worldwide over the next 10 yearsLITTLE ROCK, Ark., March 3, 2025 /PRNewswire/ -- Montrose Environmental Group (NYSE: MEG) is on a mission to help protect the air we breathe, the water we drink, and the soil that feeds us. The company has been selected as one of the top environmental firms by the United States Air Force for the Multiple Award Task Order Contract (MATOC). Under this contract, Montrose, in partnership wi ...

Financial Data and Key Metrics Changes - Montrose Environmental Group reported record revenue of $696.4 million for 2024, representing an 11.6% increase compared to 2023 [33] - Consolidated adjusted EBITDA for 2024 reached $95.8 million, up from $78.6 million in 2023, with an adjusted EBITDA margin of 13.8%, an increase of 120 basis points [10][34] - The company achieved a diluted adjusted net income per share of $1.08 for 2024, a slight increase from $1.07 in the previous year [35] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment reported fourth quarter revenue of $50.8 million, a slight increase from $50.1 million in the prior year [37] - The Measurements and Analysis segment saw a revenue increase of 21.3% to $65.5 million in the fourth quarter [38] - The Remediation and Reuse segment's fourth quarter revenue increased by 18.2% to $72.8 million, with adjusted EBITDA rising 53% to $12.7 million [39] Market Data and Key Metrics Changes - Approximately 20% of Montrose's revenue originated from international markets, including Canada, Australia, and Europe, a significant increase from 4% in 2021 [13] - The company noted strong performance in Canada and Australia, particularly in treatment technology services [14] Company Strategy and Development Direction - Montrose aims to simplify its balance sheet by redeeming $60 million of preferred stock in April 2025 and the remaining $62 million by the end of 2025 [22] - The company is temporarily deemphasizing M&A to focus on balance sheet optimization while maintaining a long-term strategy that includes acquisitions [23] - Montrose's integrated business model, supported by a portfolio of 24 patents, is expected to continue differentiating the company in the market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform well under the new U.S. administration, citing historical growth during previous administrations [15] - The company anticipates 2025 revenue guidance of $735 million to $785 million and adjusted EBITDA of $101 million to $108 million, reflecting continued organic growth [28][47] - Management highlighted the importance of state-level regulations driving demand for treatment technologies, which provides stability for the business [17] Other Important Information - The company reported a leverage ratio of 2.1x and ample liquidity of approximately $300 million as of December 31, 2024 [46] - Montrose's cash flow from operating activities for the full year was $22.2 million, down from $56 million in the prior year, primarily due to increased working capital [41] Q&A Session Summary Question: Concerns about EBITDA margin guidance for 2025 - Management acknowledged the potential for continued margin expansion but indicated that the guidance reflects a steady outlook based on strong performance in 2024 [58][60] Question: Cash flow conversion expectations - Management explained that lower cash flow conversion in 2024 was due to timing issues related to receivables and expressed confidence in achieving the 50% target in 2025 [64][66] Question: Changes in project timelines post-election - Management reported no significant changes in project timelines and noted that client activity remains strong [76][80] Question: Cross-selling initiatives and organic growth - Management highlighted that over 50% of revenue is driven by cross-selling, with strong traction in clients purchasing multiple services [82][84] Question: International revenue growth potential - Management indicated that while international revenue is growing, the company will remain predominantly North America-based for the time being [96][97]

Fourth Quarter 2024 Earnings Call FEBRUARY 27, 2025 Disclosures 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 n ...

Montrose Environmental (MEG) reported $189.06 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 14.1%. EPS of $0.29 for the same period compares to $0.27 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $187.81 million, representing a surprise of +0.67%. The company delivered an EPS surprise of -6.45%, with the consensus EPS estimate being $0.31.While investors scrutinize revenue and earnings changes year-over-year and how they compa ...

Revenue Performance - Record quarterly revenue of $189.1 million, an increase of $21.3 million, or 14.1% compared to Q4 2023[6] - Full year 2024 total revenue reached $696.4 million, an increase of $72.2 million, or 11.6% over the prior year[12] - Revenues for the year ended December 31, 2024, increased to $696,395 thousand, up 11.5% from $624,208 thousand in 2023[25] Net Loss and Income - Net loss for Q4 2024 was $28.2 million, or $0.90 loss per share, compared to a net loss of $1.4 million, or $0.18 loss per share in Q4 2023[9] - Net loss for the year ended December 31, 2024, was $62,314 thousand, compared to a net loss of $30,859 thousand in 2023, representing a 102.5% increase in losses[25] - Adjusted Net Income for Q4 2024 was $14.7 million, or $0.29 Adjusted EPS, equal to the prior year quarter[10] - Adjusted Net Income attributable to stockholders for the year ended December 31, 2024, was $44,768,000, compared to $39,713,000 in 2023, reflecting an increase of about 13%[40] - Basic Adjusted Net Income per share for the year ended December 31, 2024, was $1.35, compared to $1.32 for the previous year, indicating a slight increase of 2%[40] EBITDA and Financial Metrics - Consolidated Adjusted EBITDA for Q4 2024 was $27.2 million, an increase of $9.8 million, or 55.8%, representing 14.4% of revenue[11] - Full year 2024 Consolidated Adjusted EBITDA was $95.8 million, an increase of $17.2 million, or 21.9%, representing 13.8% of revenue[14] - The company reported an Adjusted EBITDA of $136,880 thousand for the year ended December 31, 2024, up from $116,452 thousand in 2023, indicating a 17.6% growth[31] - Consolidated Adjusted EBITDA for the year ended December 31, 2024, was $95,788,000, an increase from $78,576,000 in 2023, representing a growth of approximately 22%[47] Segment Performance - Organic revenue growth for the full year 2024 was 8.3%, driven by strong performance in Assessment, Permitting and Response, and Measurement and Analysis segments[12] - The Assessment, Permitting and Response segment generated revenues of $214,850 thousand in 2024, down from $220,727 thousand in 2023, a decrease of 2.0%[31] - The Remediation and Reuse segment saw revenues increase to $257,179 thousand in 2024, up from $206,386 thousand in 2023, representing a 24.6% increase[31] Financial Position and Liquidity - As of December 31, 2024, the leverage ratio was 2.1x, with $296.7 million of liquidity available[18] - The company entered into a new $500 million Senior Secured Credit Agreement to enhance financial flexibility[17] - Total current assets rose to $237,999 thousand as of December 31, 2024, from $200,924 thousand in 2023, reflecting an 18.4% increase[27] - Cash, cash equivalents, and restricted cash decreased to $12,935 thousand at the end of 2024, down from $23,240 thousand in 2023, a decline of 44.8%[27] - Total liabilities increased to $451,161 thousand as of December 31, 2024, compared to $342,606 thousand in 2023, marking a 31.7% rise[27] Shareholder Information - The weighted average common shares outstanding increased to 33,061 thousand in 2024 from 30,058 thousand in 2023, an increase of 10.0%[25] - The increase in fully diluted shares to 41,328,000 as of December 31, 2024, was primarily due to a public offering and changes in the conversion rate of Series A-2 Preferred Stock[45] Future Outlook - 2025 revenue guidance is projected to be in the range of $735.0 million to $785.0 million, with organic growth expectations of 7% to 9% per year[6] - The company expects variability in certain items, such as stock-based compensation and income tax expenses, to significantly impact future GAAP financial results[36] - Organic growth is defined as revenue changes excluding contributions from acquisitions and certain other factors, indicating a focus on sustainable growth strategies[37] - The company anticipates continued organic growth in the long term, leveraging its existing operations and market position[37] Expenses - The company incurred interest expense of $15,862 thousand for the year ended December 31, 2024, compared to $7,793 thousand in 2023, reflecting a 103.5% increase[25] - The company reported stock-based compensation expenses of $64,665,000 for the year ended December 31, 2024, up from $47,267,000 in 2023, marking a rise of approximately 37%[40]

Core Insights - Montrose Environmental Group reported record financial and operational performance for both the fourth quarter and full year of 2024, driven by strong demand for its integrated environmental services and technology [2][3] - The company experienced significant organic growth, improved margins, and successful integration of acquisitions, which validate its strategic business model [2][3] - The outlook for 2025 remains positive, with expectations of continued revenue growth and margin expansion [2][5] Fourth Quarter 2024 Highlights - Total revenue reached $189.1 million, a 14.1% increase from $165.7 million in the same quarter of 2023, with contributions from acquisitions and strong organic growth [3][5] - Net loss was $28.2 million, or $0.90 per share, compared to a net loss of $1.4 million, or $0.18 per share, in the prior year, primarily due to a one-time charge related to executive stock appreciation rights [4][5] - Consolidated Adjusted EBITDA was $27.2 million, representing 14.4% of revenue, an increase of 55.8% from the previous year [5][7] Full Year 2024 Highlights - Total revenue for the year was $696.4 million, an increase of 11.6% from $624.2 million in 2023, driven by acquisitions and organic growth [8][11] - The net loss for the year was $62.3 million, or $2.22 per share, compared to a net loss of $30.9 million, or $1.57 per share, in the prior year [9][10] - Consolidated Adjusted EBITDA for the year was $95.8 million, or 13.8% of revenues, up from $78.6 million, or 12.6% of revenues, in 2023 [11] Financial Position and Cash Flow - As of December 31, 2024, Montrose had a leverage ratio of 2.1x and $296.7 million in liquidity, including $12.9 million in cash [13][14] - Net cash provided by operating activities for the year was $22.2 million, a decrease from $56.0 million in the prior year, primarily due to increased accounts receivable [12] - The company entered into a new $500 million Senior Secured Credit Agreement to enhance its financial flexibility [13] 2025 Guidance - Revenue is expected to be in the range of $735.0 million to $785.0 million, with organic revenue growth anticipated at 7% to 9% per year [5][8] - Consolidated Adjusted EBITDA is projected to be between $101.0 million and $108.0 million, reflecting continued margin expansion and improved operating cash flow [5][8]

Core Insights - Montrose Environmental Group, Inc. appointed Mr. Vincent Colman to its Board of Directors and Audit Committee effective February 19, 2025, reflecting the company's commitment to enhancing leadership and driving long-term shareholder value [1][2] Group 1: Appointment and Expertise - Mr. Colman brings nearly 40 years of experience from PricewaterhouseCoopers (PwC), providing exceptional financial and accounting proficiency [1] - His expertise includes public company reporting, governance, and business strategy, which will be valuable for Montrose [1][2] - The Board confirmed Mr. Colman's independence and recognized him as an audit committee financial expert [1] Group 2: Mr. Colman's Vision - Mr. Colman expressed his honor in joining Montrose and emphasized the importance of strategic financial leadership in driving sustainable growth [2] - He aligns with Montrose's commitment to innovation and organic growth, aiming to build long-term value [2] Group 3: Company Overview - Montrose is a leading environmental solutions company with approximately 3,400 employees across over 100 locations globally [3] - The company offers a range of services including air measurement, regulatory compliance, emergency response, and remediation [3] - Montrose combines local knowledge with an integrated approach to effectively meet project requirements [3]

Core Points - Montrose Environmental Group, Inc. announced the planned dates for its fourth-quarter and full-year 2024 results and conference call [1] - The conference call is scheduled for February 27, 2025, at 8:30 a.m. Eastern Time [2] - A live webcast of the conference call will be available on the Montrose website [3] - An archived replay of the call will be accessible for 30 days following the live event [4] Company Overview - Montrose is a leading environmental solutions company with approximately 3,400 employees across over 100 locations worldwide [5] - The company focuses on supporting commercial and government organizations in addressing current challenges and preparing for future needs [5] - Montrose offers a range of services including air measurement, laboratory services, regulatory compliance, environmental emergency response, permitting, engineering, and remediation [5]

Core Viewpoint - Montrose Environmental Group, Inc. will participate virtually in the Needham 27th Annual Growth Conference due to wildfires in southern California, although its operations remain unaffected [1]. Company Overview - Montrose is a leading environmental solutions company with approximately 3,400 employees across over 100 locations globally [3]. - The company focuses on providing support to commercial and government organizations in addressing current challenges and preparing for future needs [3]. - Montrose offers a range of services including air measurement, laboratory services, regulatory compliance, environmental emergency response, permitting, engineering, and remediation [3]. - The company aims to deliver innovative and practical solutions to meet clients' immediate needs and strategic goals [3].

LITTLE ROCK, Ark., Jan. 8, 2025 /PRNewswire/ -- Montrose Environmental Group, Inc. (the "Company," "Montrose" or "MEG") (NYSE: MEG) today announced that the Company will present at the Needham 27th Annual Growth Conference in New York, New York on Tuesday, January 14, 2025 at 9:30 a.m. Eastern Time. Prior to Montrose's attendance at this conference, the Company will post a copy of the presentation it intends to use in the Investors section of its website.A live audio webcast will be available at the time of ...