PRINCETON JUNCTION, N.J., April 14, 2025 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (NYSE:MG), the leading provider of integrated technology-enabled asset protection solutions, today announced the appointment of Cliff Schaffer as Senior Vice President of In-Lab Services. Reporting to Hani Hammad, Executive Vice President and Chief Operating Officer, Schaffer will lead MISTRAS' in-lab strategy and operations across North America, with a focus on scaling services for aerospace and defense and heavy manufacturing ...

PRINCETON JUNCTION, N.J., April 14, 2025 (GLOBE NEWSWIRE) -- MISTRAS Group, Inc. (NYSE: MG), the leading provider of integrated technology-enabled asset protection solutions, today announced the appointment of Cliff Schaffer as Senior Vice President of In-Lab Services. Reporting to Hani Hammad, Executive Vice President and Chief Operating Officer, Schaffer will lead MISTRAS’ in-lab strategy and operations across North America, with a focus on scaling services for aerospace and defense and heavy manufacturin ...

Core Insights - MISTRAS Group, Inc. is celebrating its growing interest and adoption of asset protection solutions in various industries by ringing the opening bell at the New York Stock Exchange [1] - The company is well-positioned for expansion and growth in 2025 due to a data-driven approach and increasing demand for asset protection in energy, manufacturing, and aerospace and defense sectors [2][3] Company Overview - MISTRAS Group is a leading multinational provider of integrated technology-enabled asset protection solutions, focusing on maximizing safety and operational uptime for critical industrial and civil assets [6][7] - The company emphasizes a technology-first mindset, utilizing advanced testing, inspection, and real-time intelligence to meet customer needs for compliance, uptime, and cost reduction [3][4] Industry Positioning - MISTRAS operates in asset-intensive industries where minimizing downtime is crucial, as disruptions can lead to significant financial losses [4] - The company collaborates with major clients globally to address complex challenges in sectors such as oil and gas, aerospace, renewable and nonrenewable power, civil infrastructure, and manufacturing [7][8] Technological Capabilities - MISTRAS enhances value for clients by integrating asset protection throughout supply chains and utilizing Industrial IoT-connected digital software and monitoring solutions [8] - Core capabilities include non-destructive testing, advanced robotics, laboratory quality control, sensing technologies, and mechanical integrity engineering services [8]

Company Overview - Mistras (MG) shares increased by 5.7% to $10.58 in the last trading session, with a higher-than-average trading volume, contrasting with a 0.7% loss over the past four weeks [1] - The company is experiencing diversified revenue gains across all segments, cost discipline through Project Phoenix, and strong performance in aerospace, defense, and energy markets [1] Earnings Expectations - Mistras is expected to report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of 128.6%, while revenues are projected to be $180.53 million, a decrease of 2.1% from the previous year [2] - The consensus EPS estimate for Mistras has been revised 29.2% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Comparison - Mistras operates within the Zacks Electronics - Miscellaneous Products industry, where another company, Universal Electronics (UEIC), saw its stock close 2.4% lower at $6.44, with a return of -28.4% over the past month [3] - Universal Electronics' consensus EPS estimate has changed by -1500% over the past month to -$0.15, representing a year-over-year change of 21.1% [4]

Financial Data and Key Metrics Changes - Consolidated revenue for 2024 was $729.6 million, a 3.4% increase over 2023 [27] - Adjusted EBITDA increased by 25.3% to $82.5 million, the highest level since 2016 [35] - Net income for 2024 was $19 million, or $0.60 per diluted share, with adjusted net income of $22.7 million, or $0.72 per diluted share, marking the highest EPS since 2016 [34] - SG&A expenses decreased by 6.2% to $156.4 million, representing 21.4% of revenue, the lowest level since 2017 [29] Business Line Data and Key Metrics Changes - Aerospace and defense revenue increased by 13% to $87 million for the full year [28] - The Products & Systems segment revenue grew by 5.2% to $13.7 million, with operating income rising from $0.3 million to $2.5 million [40] - The International segment revenue increased by 3.6% to $35 million in Q4 2024, with full-year growth of 9.3% [38] Market Data and Key Metrics Changes - North America segment revenue in Q4 was $136.9 million, down 7.5% from the prior year, primarily due to a decrease in the midstream industry [37] - The international energy and aerospace and defense industries experienced double-digit revenue growth [39] Company Strategy and Development Direction - The company aims to leverage its strong partnership with customers and committed management teams to drive profitable growth in 2025 and beyond [22] - Continued investments in aerospace and defense industries, as well as expansion into private space industry services, are part of the long-term strategy [50] - The company is focusing on enhancing its data analytics capabilities and expanding its service offerings [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting improved Q4 results and a disciplined approach to cost management [52] - The company anticipates a normalized turnaround season in 2025, with expectations for growth in the midstream sector due to regulatory changes [69][89] - Management is optimistic about the growth prospects in data analytics, despite delays in project implementations [72] Other Important Information - The company experienced a significant paydown of bank debt, reducing leverage to below 2.5x, the lowest level since Q3 2018 [25] - Capital expenditures remained consistent at $23 million, focusing on efficiency improvements [43] Q&A Session Summary Question: Customer feedback on MISTRAS - Positive feedback was received from customers regarding the complete suite of offerings, particularly in integrity and asset performance management [57] Question: Status of receivables issue - Management believes the receivables issue is well managed and a top priority heading into 2025 [59] Question: Upcoming turnaround season expectations - 2025 is expected to be a normalized year for turnarounds, with a weaker spring and stronger fall season compared to 2024 [69] Question: Data analytics revenue growth - Data analytics revenue was down in 2024 due to project timing delays, but growth is anticipated in 2025 [72] Question: Impact of tariffs on business - The impact of tariffs is still being assessed, with no immediate effects noted [82] Question: Midstream revenue performance - Midstream experienced project delays in 2024, but growth is expected in 2025 due to stricter pipeline integrity requirements [89] Question: Strategic changes in data analytics - No strategic changes are being made in data analytics; investments will continue despite recent delays [91] Question: Sustainability of SG&A levels - The SG&A level in Q4 is considered sustainable moving forward, reflecting disciplined cost control [95]

Financial Performance - The company generated revenues of $729.6 million, $705.5 million, and $687.4 million for the years ended December 31, 2024, 2023, and 2022, respectively, with a net income of $19.0 million in 2024 compared to a net loss of $17.4 million in 2023[23]. - Approximately 81%, 82%, and 83% of the company's revenues for the years ended December 31, 2024, 2023, and 2022, respectively, were generated from the North America segment[23]. - The top ten customers accounted for approximately 36%, 35%, and 33% of the company's revenues during the years ended December 31, 2024, 2023, and 2022, respectively, with no single customer exceeding 10% of revenues in any year[23]. - Revenue is derived from various services, including data analytical solutions, field services, and shop laboratory revenue, with a focus on asset protection solutions[93]. - Mistras recognized goodwill impairment charges of $13.8 million within the International reporting units during the year ended December 31, 2023[200]. - The company has significant foreign currency exposure, primarily from revenues in euros, British pounds, and other currencies, which could adversely affect financial results due to exchange rate fluctuations[186]. - Mistras does not currently enter into forward exchange contracts to hedge foreign currency exposures but may consider doing so as international sales increase[187]. - The company has not declared or paid any cash dividends on its common stock and does not anticipate doing so in the foreseeable future[194]. Market Trends and Growth - The company expects long-term growth in its target markets, influenced by macroeconomic conditions and oil price fluctuations affecting inspection and maintenance expenditures[20]. - Aging infrastructure is leading to increased spending on asset protection, as companies seek to extend the useful life of existing assets through enhancements rather than replacements[53]. - The outsourcing of non-core activities is rising, with companies increasingly relying on third-party providers for advanced NDT services due to a shortage of skilled professionals[54]. - The introduction of stringent pipeline integrity regulations is expected to increase demand for integrated inspection and data management solutions[63]. - The aerospace and defense industries are projected to grow, driven by a backlog in next-generation commercial aircraft production and increased demand for private space flight[59]. - The company aims to expand its customer base into new end markets, including renewable energy, natural gas transportation, and data centers, driven by the adoption of advanced asset protection technologies[83]. Technology and Innovation - The company's OneSuite platform provides access to over 90 integrated applications, serving as a centralized portal for customers' data activities[21][31]. - The Plant Condition Management Software (PCMS®) is used by approximately 50% of U.S. refiners, enhancing asset integrity management across facilities[33]. - The company utilizes advanced technologies, including smart sensing and robotic inspection systems, to enhance data acquisition and asset integrity monitoring[27]. - The digital transformation of asset protection is driving demand for data analytical solutions, enabling customers to maximize uptime while controlling costs[52]. - The company has invested in technology development, including automated inspection solutions and a cloud-based monitoring data portal, to enhance operational efficiencies[79]. - The company is focused on strategic R&D investments in data analytical solutions technologies to enhance service offerings and improve operational efficiencies[133]. - The company holds 12 U.S. patents and has 5 patent applications pending, which are expected to provide a competitive advantage in the asset protection solutions market[136]. Operational Strategy - The company has made numerous acquisitions to expand its service lines and technical capabilities, increasing its geographical reach and customer base[19]. - Several acquisitions have been completed to enhance solutions and expand sales channels, with a focus on organic revenue growth and selective small acquisitions expected beyond 2025[84]. - The company aims to expand its mechanical services portfolio, providing value through cost-efficient solutions that reduce the need for multiple vendors[78]. - The company plans to expand its solution offerings to existing customers, targeting additional recurring revenues through complementary services[82]. - The company operates in three segments: North America, International, and Products and Systems, with North America being the largest market[85]. Safety and Compliance - The in-house laboratories hold various certifications, including Nadcap and AS9100/ISO-9001, ensuring compliance with stringent regulatory requirements[38]. - For the year ended December 31, 2024, the Total Recordable Incident Rate (TRIR) was 0.19, a decrease from 0.30 in 2023, indicating improved safety performance[128]. - The company emphasizes a safety-conscious culture, aiming to embed safety practices in the daily work of all employees[127]. - The company is subject to increasing regulatory requirements regarding data privacy and security, which may result in significant compliance costs[201]. Management and Governance - The company has appointed Natalia Shuman as President and CEO effective January 1, 2025, following a management succession planning initiative[142]. - Gennaro "Jerry" D'Alterio joined Mistras as Executive Vice President and Chief Commercial Officer on September 11, 2023, bringing over 20 years of executive leadership experience[152]. - Michael C. Keefe has been with Mistras since December 2009, previously holding various executive positions in legal roles at Lucent Technologies and AT&T[153]. - John A. Smith became Executive Vice President and President of Services on October 1, 2023, after serving as Senior Vice President of Operations since 2018[154]. - The family of the late founder holds approximately 34% of the outstanding common stock, giving them significant control over corporate decisions[193]. - The company relies on its senior management team for effective operations and strategic objectives, with compensation programs in place to retain key members[202]. Risks and Challenges - The company faces significant barriers to entry in the NDT market, including complex regulations, high capital requirements, and the need for advanced technology development[130]. - Mistras faces risks related to information technology and security, including potential breaches that could harm business operations and reputation[188]. - Social, political, and economic instability may adversely affect the company's operations and financial condition[204]. - Changes in federal policy and regulatory frameworks can lead to significant uncertainties impacting the company's business operations[205]. - The company may require additional capital for growth, which could involve equity or debt financing, potentially leading to stockholder dilution[206]. - Current credit facilities limit acquisition capabilities due to existing debt levels, requiring bank approval for new acquisitions[206]. - The company faces challenges in securing adequate financing for growth and acquisitions, which may hinder its ability to respond to business opportunities[206].

Mistras Group, Inc. (NYSE:MG) Q4 2024 Earnings Conference Call March 6, 2025 9:00 AM ET Company Participants Thomas Tobolski - Treasurer Manuel Stamatakis - Executive Chairman of the Board Natalia Shuman - President and Chief Executive Officer Edward Prajzner - Senior Executive Vice President and Chief Financial Officer Conference Call Participants John Franzreb - Sidoti & Company Mitchell Pinheiro - Sturdivant & Company Operator Thank you for joining MISTRAS Group's Conference Call for its Fourth Quarter a ...

Revenue and Income Growth - Full year 2024 revenue increased by 3.4% to $729.6 million, with growth across all reported segments and industries[6] - Net income for full year 2024 rose by 208.6% to $19.0 million, translating to earnings per diluted share of $0.60[1][9] - Adjusted EBITDA for full year 2024 was $82.5 million, reflecting a 25.3% increase compared to the prior year[10] - Total revenue for the year ended December 31, 2024, was $729,640,000, an increase from $705,473,000 in 2023, representing a growth of approximately 3.5%[37] - Net income for the year ended December 31, 2024, was $18,970,000, compared to a net loss of $17,445,000 in 2023, showing a turnaround in profitability[49] - Adjusted EBITDA for the year ended December 31, 2024, was $82,457,000, up from $65,800,000 in 2023, reflecting an increase of about 25.2%[49] Cash Flow and Operations - Net cash from operations for full year 2024 reached $50.1 million, an increase of 87.4%, while free cash flow surged by 775.9% to $27.1 million[1][14] - Free cash flow for the year ended December 31, 2024, was $27,143,000, significantly higher than $3,099,000 in 2023, marking an increase of approximately 775%[45] - Cash provided by operating activities for the year ended December 31, 2024, was $50,129,000, compared to $26,748,000 in 2023, an increase of about 87.5%[43] - The company reported a free cash flow of $18.970 million for the year ended December 31, 2024, compared to a negative free cash flow of $17.445 million in 2023[30] Segment Performance - The Aerospace and Defense industry saw a significant revenue increase of 13.0% to $87.0 million for full year 2024[6] - The International segment reported a revenue increase of 3.6% to $35.0 million in Q4 2024, with a full year gross profit increase of 18.5%[12] - The Products and Systems segment experienced a revenue growth of 5.2% to $13.7 million, with income from operations increasing by 840.1% to $2.5 million[13] - Oil & Gas segment revenue for 2024 was $418,923,000, slightly up from $415,995,000 in 2023, indicating a growth of about 0.5%[39] Expenses and Liabilities - Selling, General and Administrative expenses decreased by 6.2% to $156.4 million, representing 21.4% of revenue, a reduction of 220 basis points[8] - The company’s accumulated deficit improved to $(9.984) million as of December 31, 2024, compared to $(28.942) million at the end of 2023[28] - Total current assets decreased to $172.470 million as of December 31, 2024, down from $180.356 million at the end of 2023[28] - The total liabilities of Mistras Group, Inc. decreased to $324.143 million from $344.273 million year-over-year[28] Debt Management - The company reported a total gross debt of $169,647,000 for the year ended December 31, 2024, down from $190,399,000 in 2023, indicating a reduction of about 10.9%[47] - Net debt decreased to $151,330,000 in 2024 from $172,753,000 in 2023, reflecting a decrease of approximately 12.4%[47] - The company’s gross debt decreased by $20.8 million to $169.6 million as of December 31, 2024[15] Quarterly Performance - For the quarter ended December 31, 2024, Mistras Group, Inc. reported revenue of $172.731 million, a decrease of 5.4% compared to $182.073 million in the same quarter of 2023[30] - Gross profit for the quarter was $51.326 million, representing a gross profit margin of 29.7%, slightly up from 29.5% in the prior year[33] - The company achieved a net income of $5.298 million for the quarter, compared to a net loss of $2.513 million in the same quarter of 2023, marking a significant turnaround[30] - North America revenue for the quarter was $136.938 million, down from $148.035 million in the same quarter of 2023, reflecting a decline of 7.4%[33] - For Q4 2024, net income attributable to Mistras Group, Inc. was $5.278 million, compared to a loss of $2.514 million in Q4 2023[52] - Diluted EPS (GAAP) for Q4 2024 was $0.17, recovering from a loss of $0.08 in Q4 2023[52] Special Items and Tax Impact - Special items, net of tax, totaled $2.248 million for Q4 2024, compared to $5.377 million in Q4 2023[52] - The company incurred reorganization and other related costs of $2.085 million in Q4 2024, down from $6.252 million in Q4 2023[52] - Total special items for the year 2024 were $4.884 million, significantly lower than $27.135 million in 2023[52] - The tax impact on special items for the year 2024 was $(1.168) million, compared to $(3.256) million in 2023[52] Future Outlook - The company is currently assessing foreign exchange risks and potential impacts of U.S. tariffs on its financial results for fiscal 2025[16][17] - Mistras Group, Inc. plans to continue focusing on operational efficiency and cost management to enhance profitability in the upcoming quarters[30]

Core Insights - MISTRAS Group, Inc. reported a full year 2024 revenue growth of 3.4%, reaching $729.6 million, with net income increasing by 208.6% to $19.0 million [1][5][9] - Adjusted EBITDA for the full year 2024 was $82.5 million, reflecting a 25.3% increase compared to the previous year [1][10] - The company achieved a significant increase in free cash flow, which rose by 775.9% to $27.1 million for the full year 2024 [1][14] Financial Performance - Full year 2024 net cash from operations was $50.1 million, an increase of 87.4% from the prior year [1][14] - Selling, General and Administrative (SG&A) expenses decreased by 6.2% to $156.4 million, contributing to improved profitability [1][8] - Gross profit for the full year 2024 increased to $213.1 million, with a gross profit margin of 29.2%, up 30 basis points from the previous year [7][25] Segment Performance - The Aerospace and Defense segment saw a substantial revenue increase of 13.0% for the full year, totaling $87.0 million [5][28] - The North America segment reported a revenue of $593.5 million for the full year 2024, while the International segment generated $135.9 million, reflecting growth in both areas [26][28] - The Products and Systems segment experienced a revenue increase of 5.2% to $13.7 million, with a remarkable 840.1% increase in income from operations [12][13] Leadership and Strategic Direction - The company expressed confidence in its future growth, with new leadership under President and CEO Natalia Shuman, who emphasized the importance of customer relationships and technology [6][4] - The Board of Directors acknowledged the contributions of the late Dr. Sotirios J. Vahaviolos, the company's founder, highlighting his impact on the company's strategic direction and culture of innovation [3] Cash Flow and Debt Management - MISTRAS generated $25.7 million of operating cash flow in the fourth quarter, using this to pay down $20.1 million of bank borrowings, reducing leverage to below 2.5X [6][15] - The company's gross debt decreased to $169.6 million as of December 31, 2024, down from $190.4 million the previous year [15] 2025 Outlook - The company is currently not providing full year guidance for fiscal 2025 but is focused on growing Adjusted EBITDA and improving margins [16]

Company Overview - MISTRAS Group, Inc. is a leading multinational provider of integrated technology-enabled asset protection solutions, focusing on maximizing safety and operational uptime for critical industrial and civil assets [3]. - The company supports various industries including oil and gas, aerospace and defense, renewable and nonrenewable power, civil infrastructure, and manufacturing [4]. Upcoming Financial Results - MISTRAS Group has scheduled a conference call for March 6, 2025, at 9:00 am Eastern Time to present its results for the fourth quarter and fiscal year ended December 31, 2024 [1]. - A press release with the fourth quarter results will be issued after the market closes on March 5, 2025 [1]. Technological Capabilities - The company enhances value for clients by integrating asset protection throughout supply chains and centralizing integrity data through Industrial IoT-connected digital software and monitoring solutions [5]. - Core capabilities include non-destructive testing, advanced robotics, laboratory quality control, sensing technologies, and mechanical integrity engineering services [5]. Commitment to ESG - MISTRAS is committed to Environmental, Social, and Governance (ESG) initiatives, aiming to achieve operational and environmental excellence for its clients [4].