Financial Data and Key Metrics - Q3 2024 revenue reached a record $178.7 million, a 6.4% increase compared to the prior year quarter [11][29] - Consolidated adjusted EBITDA for Q3 2024 was $28.3 million, with a margin of 15.8%, a 190 basis point improvement over the prior year quarter [11][31] - Year-to-date revenue for the first nine months of 2024 was $507.4 million, a 10.7% increase compared to the prior year period [29] - Diluted adjusted net income per share for Q3 2024 was $0.41, up from $0.31 in the prior year quarter [32] Business Line Performance - Assessment, Permitting and Response (AP&R) segment revenue was $52 million in Q3 2024, down from $57 million in the prior year quarter, primarily due to a $12.8 million reduction in high-margin environmental emergency response revenue [35][36] - Measurement and Analysis (M&A) segment revenue increased 16.1% to $58.6 million in Q3 2024, driven by strong organic growth in lab and field services and contributions from the Origins acquisition [37] - Remediation and Reuse segment revenue increased 12.6% to $68.1 million in Q3 2024, benefiting from acquisitions and solid organic growth in remediation services, offsetting declines in treatment technology revenue [38] Market Performance - Approximately 20% of the company's business in Canada, Australia, and Europe continues to perform well, with strong demand across all geographies [25][50] - The US market remains robust, with growing demand for environmental solutions driven by regulatory changes and public/private sector focus on environmental stewardship [12][13] Company Strategy and Industry Competition - The company remains committed to its long-term strategy, focusing on organic growth and cross-selling initiatives, while temporarily deemphasizing acquisitions to prioritize the redemption of Series A-2 preferred stock [14][15] - The company expects to convert over 50% of consolidated adjusted EBITDA into operating cash flow, enabling investments in business, strategy, and people [16] - The company's selection by the US Army Corps of Engineers for a major environmental contract validates its strategic approach and positions it well within the growing US federal sector [25] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the company's ability to perform well regardless of political changes, citing historical growth during the Obama, Trump, and Biden administrations [24] - The company expects strong organic growth across most business lines and positive contributions from acquisitions, despite temporary delays in certain project work [18][45] - The company reiterated its full-year 2024 guidance, expecting revenue of $690 million to $740 million and consolidated adjusted EBITDA of $95 million to $100 million [18][43] Other Important Information - The company reported significant improvement in operating cash flow conversion to 40% of consolidated adjusted EBITDA in Q3 2024, with further improvement expected in Q4 [17] - The company's leverage ratio as of September 30, 2024, was 2.6 times, well within the preferred level of below three times [41] - The company plans to focus on balance sheet simplification, particularly the redemption of Series A-2 preferred stock, with $122 million outstanding as of September 30, 2024 [42] Q&A Session Summary Question: Impact of the Trump election win on the business - The company expects continued organic growth, with consulting and treatment services likely to perform well, similar to the previous Trump administration [48][49] - Approximately 20% of revenue is now from international markets (Canada, Europe, and Australia), which are performing exceptionally well and are expected to remain stable [50] Question: COO Joshua LeMaire's departure - Joshua LeMaire is stepping down from the COO role for personal reasons but will remain with the company to assist in the transition and onboarding of a new leader [52] Question: Performance of recent acquisitions (Origins and Spirit) - Both acquisitions are performing well, with Origins benefiting from regulatory tailwinds in Colorado and the Mountain States, and Spirit adding value to the company's consulting and testing footprint [54][55] Question: Timeline for deemphasizing acquisitions and equity issuance - The company plans to focus on organic growth and the redemption of Series A-2 preferred stock over the next few quarters, with no immediate plans for equity issuance [58][59][63] Question: Risk of lost opportunities due to the M&A pause - The company does not see any risk of losing core target opportunities and remains close to its strategic goals [67] Question: Outlook for Q4 2024 revenue growth - Most business lines are seeing double-digit organic growth, with Q4 revenue expected to increase 10% to 15%, driven by acquisitions and potential recovery in emergency response revenue [74][75][76] Question: Matrix margins and organic growth - Matrix achieved mid-teen margins in Q3 2024, with strong organic growth and operational improvements driving performance [78][79] Question: US Army Corps of Engineers contract milestones - The company expects milestones and revenue opportunities from the contract, with updates to be provided as the project progresses [70][71]

Third Quarter 2024 Earnings Call N O V E M B E R 7 , 2 0 2 4 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 ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 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 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.000004 per share MEG The New York Stock Exchange Indicate by check mark whether the registra ...

Montrose Environmental (MEG) reported $178.69 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.4%. EPS of $0.41 for the same period compares to $0.18 a year ago.The reported revenue represents a surprise of -3.15% over the Zacks Consensus Estimate of $184.51 million. With the consensus EPS estimate being $0.35, the EPS surprise was +17.14%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

Montrose Environmental (MEG) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.14%. A quarter ago, it was expected that this company would post earnings of $0.24 per share when it actually produced earnings of $0.20, delivering a surprise of -16.67%.Over the last four quarters, the c ...

Financial Performance - Total revenue for Q3 2024 reached $178.7 million, a 6.4% increase from $167.9 million in Q3 2023[5] - Net loss for Q3 2024 was $10.6 million, or $0.39 loss per share, compared to a net loss of $7.5 million, or $0.39 loss per share in the prior year[6] - Adjusted Net Income for Q3 2024 was $19.1 million, or $0.41 adjusted EPS, up from $15.7 million, or $0.31 adjusted EPS in Q3 2023[7] - Consolidated Adjusted EBITDA for Q3 2024 was $28.3 million, representing 15.8% of revenue, compared to $23.3 million, or 13.9% of revenue in the prior year[8] - Total revenue for the first nine months of 2024 was $507.4 million, a 10.7% increase from $458.5 million in the same period of 2023[9] - Net loss for the first nine months of 2024 was $34.1 million, or $1.30 loss per share, compared to a net loss of $29.4 million, or $1.39 loss per share in the prior year[10] - Consolidated Adjusted EBITDA for the first nine months of 2024 was $68.5 million, or 13.5% of revenue, compared to $61.1 million, or 13.3% of revenue in the prior year[12] Guidance and Projections - The company reaffirms its full-year 2024 revenue guidance of $690 million to $740 million and Consolidated Adjusted EBITDA guidance of $95 million to $100 million[17] - Future projections for Consolidated Adjusted EBITDA in 2024 are based on estimates of revenue and operating margins, but cannot be reconciled to net income without unreasonable efforts[32] Assets and Liabilities - Total assets as of September 30, 2024, reached $1.007 billion, a significant increase from $816.8 million at the end of 2023, representing a growth of 23.3%[23] - Total liabilities increased to $464.8 million as of September 30, 2024, compared to $342.6 million at the end of 2023, marking a rise of 35.7%[24] - The company’s equity increased to $449.2 million as of September 30, 2024, from $321.3 million at the end of 2023, representing a growth of 39.8%[25] Cash Flow and Expenses - Cash and cash equivalents decreased to $13.0 million from $23.2 million at the end of 2023, indicating a decline of 44%[23] - Accounts receivable increased to $152.8 million, up 36% from $112.4 million at the end of 2023, reflecting improved revenue collection[23] - The company incurred interest expense of $11.4 million for the nine months ended September 30, 2024, compared to $5.5 million for the same period in 2023, reflecting a 107% increase[22] Segment Performance - Total operating segments revenue for Q3 2024 was $507.34 million, a 10.65% increase from $458.47 million in Q3 2023[28] - Consolidated Adjusted EBITDA for Q3 2024 was $28.31 million, compared to $23.30 million in Q3 2023, reflecting a 21.5% increase[36] - Total segment revenues for the Measurement and Analysis segment in Q3 2024 were $158.89 million, up from $143.05 million in Q3 2023[28] - The Remediation and Reuse segment reported revenues of $184.41 million in Q3 2024, compared to $144.78 million in Q3 2023, marking a 27.5% increase[28] Strategic Initiatives - The company plans to prioritize the redemption of preferred equity and subsequent deleveraging while focusing on cash flow generation[4] - The company received five patents in 2024, increasing its total patent portfolio to 23, enhancing its capabilities across multiple contaminants[11] - The company expects to continue organic growth, excluding revenues from environmental emergency response and acquisitions[33] Shareholder Information - The company reported a weighted average of 34.24 million common shares outstanding for Q3 2024, compared to 30.14 million in Q3 2023[35] - The company’s net loss per share attributable to common stockholders was $(0.39) for the three months ended September 30, 2024, consistent with the same period in 2023[22] - Basic Adjusted Net Income per share for Q3 2024 was $0.48, compared to $0.39 in Q3 2023, indicating a 23.1% increase[35]

Third Quarter 2024 Highlights (comparisons to third quarter 2023) Highest-ever total revenue of $178.7 million, an increase of $10.8 million, or 6.4% Net loss of $10.6 million, or $0.39 net loss per diluted share attributable to common stockholders (LPS), and Adjusted Net Income1 of $19.1 million, or $0.41 Diluted Adjusted Net Income per share1 (Adj EPS) Record Consolidated Adjusted EBITDA1 of $28.3 million, an increase of $5.0 million, or 21.5% Consolidated margin expansion Reaffirms full-year 2024 guidanc ...

LITTLE ROCK, Ark. , Sept. 24, 2024 /PRNewswire/ -- Montrose Environmental Group, Inc. ("Montrose" or "the Company") (NYSE: MEG), a high-growth global environmental solutions company, today shared insight into its brownfields and community revitalization work with Alaska Native Corporations (ANCs). The Alaska Native Claims Settlement Act (ANCSA) of 1971 included the transfer of 44 million acres of land to twelve regions and over 200 village ANCs. Some of these areas have been contaminated due to past activit ...

LITTLE ROCK, Ark. and DENVER, Sept. 10, 2024 /PRNewswire/ -- Montrose Environmental Group, Inc. ("Montrose" or "the Company") (NYSE: MEG), a high-growth global environmental solutions company, today announced the acquisition of Origins Laboratory, LLC ("Origins"), a leading environmental laboratory. Origins, including owners Noelle and David Mathis, will be integrated into the Company's Measurement and Analysis Segment and operate as part of Enthalpy Analytical, LLC ("Enthalpy"), a subsidiary of Montrose. T ...

Financial Data and Key Metrics - Q2 2024 revenue increased by 8.9% to a record $173.3 million, with H1 2024 revenue reaching $328.7 million, up 13.1% YoY [23] - Q2 2024 consolidated adjusted EBITDA was $23.3 million, or 13.5% of revenue, compared to $21.2 million, or 13.3% of revenue in Q2 2023 [24] - Diluted adjusted net income per share was $0.20 in Q2 2024, down from $0.29 in Q2 2023, primarily due to increased interest and tax expenses [25] - Full-year 2024 revenue guidance reiterated at $690 million to $740 million, with consolidated adjusted EBITDA guidance of $95 million to $100 million [30][31] Business Segment Performance - **Assessment, Permitting and Response (AP&R)**: Q2 revenue was $53.4 million, down from $61.4 million YoY due to a $14.7 million decline in environmental emergency response revenues [27] - **Measurement and Analysis (M&A)**: Q2 revenue increased 9.5% to $54.8 million, with adjusted EBITDA up 14.6% to $12.4 million, or 22.5% of revenue [27] - **Remediation and Reuse**: Q2 revenue increased 36.6% to $65.1 million, driven by the acquisition of Matrix and strong organic growth in soil and groundwater remediation [28] Market and Regulatory Developments - The U.S. Supreme Court rulings may limit federal agency authority, increasing regulatory complexity and driving demand for advisory and consulting services [13][14] - PFAS regulations, including CERCLA designations, are expected to enhance access to a $200 billion addressable market [16][17] - Methane emissions funding of $850 million from the EPA presents long-term tailwinds for emissions monitoring and assessment solutions [18] Strategic Direction and Industry Competition - The company completed strategic acquisitions of Paragon and Spirit Environmental, expanding its footprint in Canada and the U.S. Mountain and Gulf states [7][8] - The M&A pipeline remains robust, with numerous opportunities expected in the next 12 to 18 months [8] - The company's business model is designed to be resilient to political changes, with limited exposure to any single end market [19] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the company's ability to capitalize on regulatory complexity and growing environmental concerns [9][20] - The company expects strong organic growth in the back half of 2024, with full-year organic growth guidance of 10% to 12% [6][31] - Client sentiment remains positive, with no immediate changes expected in demand for the company's services [15] Other Important Information - The company raised $121.8 million in a follow-on equity offering, deploying $27 million for acquisitions [29] - Leverage ratio as of June 30, 2024, was 2.4x, well within the long-term target of below 3.5x [30] - Matrix is on track to achieve mid-teen adjusted EBITDA margins by the end of 2024 [28][47] Q&A Session Summary Question: Organic growth in Q2 - The company does not break out quarterly organic growth but is on track to achieve annual organic growth guidance of 10% to 12% [33] Question: Water treatment business outlook - PFAS water treatment is expected to grow in H2 2024, with long-term secular tailwinds in the broader treatment technology business [34][35] Question: Impact of Supreme Court rulings on M&A and resource allocation - The company does not anticipate significant changes due to the Supreme Court rulings, as most regulations impacting the company are within the EPA's statutory authority [39][40] Question: Gross margin improvement - Gross margins improved due to business mix, pricing success, and operating leverage, with further improvements expected [42][43] Question: Contribution of recent acquisitions to guidance - Recent acquisitions (Paragon and Spirit) are small and contribute minimally to the full-year guidance [45][46] Question: Matrix margin improvement - Matrix is on track to achieve mid-teen adjusted EBITDA margins by the end of 2024, driven by pricing, staffing optimization, and overhead cost reductions [47][48] Question: Renewable service business progress - The renewable service business is progressing well, with expected growth in H2 2024 and beyond [50][51] Question: Capital allocation and share buybacks - The company has surpassed its annual acquisition goal of $10 million in EBITDA and does not currently plan to buy back shares, focusing instead on high-growth acquisitions [52][53][54]