Financial Performance - Consolidated revenue for fiscal 2023 was $795.0 million, an increase of $87.2 million (12.3%) compared to $707.8 million in fiscal 2022[149]. - Gross profit for fiscal 2023 was $30.8 million, compared to a gross loss of $1.2 million in fiscal 2022, resulting in a gross margin of 3.9%[150]. - The company reported a net loss of $52.4 million in fiscal 2023, an improvement from a net loss of $63.9 million in fiscal 2022, translating to losses of $1.94 and $2.39 per fully diluted share, respectively[156]. - Adjusted EBITDA for fiscal 2023 was reported at $(17.7) million, an improvement from $(45.6) million in fiscal 2022, indicating a trend towards better operational performance[175]. - The effective tax rate for fiscal 2023 was 0.8%, a significant change from (9.6)% in fiscal 2022, influenced by valuation allowances on deferred tax assets[155]. - The company recognized a goodwill impairment of $12.32 million in the second quarter of fiscal year 2023, while no impairment was recorded in the fourth quarter[251]. - The net loss for the fiscal year 2023 was $52.36 million, an improvement from a net loss of $63.90 million in fiscal year 2022[256]. - Basic loss per common share for fiscal year 2023 was $1.94, compared to $2.39 in fiscal year 2022[256]. Revenue Segments - Revenue for the Storage and Terminal Solutions segment increased by $22.9 million to $255.7 million in fiscal 2023, driven by higher volumes of specialty vessel capital projects and tank repair work[157]. - The Utility and Power Infrastructure segment's revenue decreased to $169.5 million in fiscal 2023 from $220.1 million in fiscal 2022, primarily due to lower volumes of natural gas utility peak shaving work[160]. - Revenue for the Process and Industrial Facilities segment rose by $115.0 million to $369.8 million in fiscal 2023, attributed to increased activity in biodiesel facility projects and refinery maintenance[162]. - Revenue from fixed-price contracts was $419.426 million in 2023, a slight decrease from $421.188 million in 2022[322]. - Revenue from time and materials and other cost reimbursable contracts increased significantly to $375.594 million in 2023 from $286.592 million in 2022, marking a growth of 31.1%[322]. Backlog and Project Awards - The backlog at the end of fiscal 2023 was $1.1 billion, the highest level since fiscal 2019, with project awards totaling $1.3 billion during the year[138]. - The Storage and Terminal Solutions segment saw a backlog increase of 38.7%, with project awards of $354.5 million in fiscal 2023[144]. - The Utility and Power Infrastructure segment experienced a backlog increase of 350.2%, with project awards of $527.0 million in fiscal 2023[145]. - The Process and Industrial Facilities segment's backlog increased by 23.1%, with project awards of $444.1 million in fiscal 2023[146]. - As of June 30, 2023, the company had $459.7 million of remaining performance obligations yet to be satisfied, with an expectation to recognize approximately $381.0 million as revenue within the next twelve months[316]. Cash Flow and Liquidity - Unrestricted cash and cash equivalents totaled $54.8 million as of June 30, 2023, with total liquidity amounting to $92.5 million when including availability under the ABL Facility[176]. - Cash provided by operating activities for the fiscal year ended June 30, 2023 totaled $10.2 million, with a net loss of $52.4 million[184]. - Liquidity at June 30, 2023 was $92.6 million, a decrease from $94.8 million at June 30, 2022[28]. - The company generated $6.5 million from asset sales, including $6.3 million from the sale of its industrial cleaning business[28]. - The company maintains a minimum of $25.0 million of restricted cash at all times as required by the ABL Facility[294]. Expenses and Impairments - Consolidated Selling, General and Administrative expenses were $68.2 million in fiscal 2023, slightly up from $67.7 million in fiscal 2022[151]. - Goodwill impairment recorded in fiscal 2023 was $12.3 million, compared to $18.3 million in fiscal 2022[151]. - The gross margins in fiscal 2023 were negatively impacted by under recovery of construction overhead costs and increased forecasted costs to complete certain projects[150]. - The company has three reporting units with a combined total of $20.9 million of goodwill at higher risk of future impairment, with estimated fair values exceeding carrying values by 11% to 28%[252]. Capital Expenditures and Investments - Capital expenditures for the fiscal year ended June 30, 2023 were $9.0 million, primarily for construction and transportation equipment[187]. - The company experienced a gain on the sale of property, plant, and equipment amounting to $2.841 million in 2023, compared to a loss of $33.114 million in 2022[267]. - Stock-based compensation expense was $6.791 million in 2023, compared to $7.877 million in 2022, reflecting a decrease in compensation costs[273]. Accounting and Reporting - The company utilizes the percentage-of-completion method to measure progress on fixed-price contracts, which is based on costs incurred to date compared to total estimated costs[203]. - The company reassesses variable consideration each accounting period until uncertainty is resolved, with changes accounted for prospectively as cumulative adjustments to revenue recognized[201]. - The company measures progress on fixed-price contracts using the percentage-of-completion method, which is based on costs incurred to date compared to total estimated costs at completion[248]. - Deloitte & Touche LLP issued an unqualified opinion on the company's internal control over financial reporting as of June 30, 2023[235]. - The company's management assessed the effectiveness of internal control over financial reporting as of June 30, 2023, concluding it was effective[231].

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $187 million, which was in line with expectations, with a net loss of $12.7 million or $0.47 per fully diluted share, and an adjusted net loss of $8.9 million or $0.33 [10][11] - The gross margin for the third quarter was 2.4%, impacted by under-recovery of construction overhead costs and additional costs related to midstream gas processing work [28][30] - The company’s liquidity increased to $11.9 million, with total liquidity of $92.4 million, including $48.2 million of unrestricted cash [30] Business Line Data and Key Metrics Changes - In the Process and Industrial Facilities segment, revenues increased by 0.3% to $100 million compared to the previous quarter, with a gross margin of approximately 10% [12] - The Utility and Power Infrastructure segment saw revenue decrease to $35 million, with a gross margin of 8% driven by good execution on power delivery work [29] - The Storage and Terminal Solutions segment's revenues decreased to $52 million, with a negative gross margin of 1.6% due to low revenue volume and substantial under-recovered construction overhead costs [43] Market Data and Key Metrics Changes - The company reported total project awards of $309 million in the third quarter, resulting in a book-to-bill ratio of 1.7, marking the seventh consecutive quarter above 1.0 [22] - The project opportunity pipeline stabilized at $5.6 billion, with 72% of the pipeline focused on low-carbon energy and industrial infrastructure projects [6][24] - The company anticipates returning to a normalized backlog of over $1 billion in the near term, with project backlog at $832 million, a 42% increase from the start of the fiscal year [22][31] Company Strategy and Development Direction - The company is strategically focused on sustainable growth opportunities in existing and new markets, with a significant emphasis on low-carbon energy projects [44] - The management highlighted the importance of leveraging technology and partnerships to capitalize on the energy revolution, particularly in hydrogen infrastructure [8][25] - The company aims to improve operational efficiency and competitiveness while managing costs effectively as revenues increase [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong award cycle continuing, with expectations for higher revenue volumes in the fourth quarter as newly awarded projects enter the revenue stream [10][22] - The company is positioned to achieve a revenue run rate of $1 billion by the second or third quarter of 2024, with anticipated acceleration in revenues [37][39] - Management noted that the current bidding environment for hydrogen projects is promising, with expectations to add more hydrogen projects to the backlog in fiscal 2024 [40] Other Important Information - The company has signed an exclusive relationship with France-based Tassal to offer engineering, procurement, and construction solutions for liquid hydrogen storage across Europe [57] - The company continues to focus on cost control, with SG&A expenses remaining consistent at $16.9 million in the third quarter [61] Q&A Session Summary Question: Impact of low-margin business on third-quarter results - Management indicated that approximately 15% to 20% of revenue was from lower-margin work in the third quarter, which is expected to decrease to low single digits in the fourth quarter [32] Question: Revenue profile for Storage and Utility segments - Management noted that the Utility segment is seeing active bidding and expanding client base, while the Storage segment is expected to bounce back significantly in the fourth quarter [46] Question: Bookings and gross margin profile - Management confirmed that the majority of larger project work booked this fiscal year aligns with historical gross margin profiles, with expectations for improvement [48] Question: Annual revenue run rate expectations - Management anticipates reaching a $1 billion annual revenue run rate by the second or third quarter of 2024, with a gradual increase in revenue expected [37][39]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 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 No. 1-15461 MATRIX SERVICE COMPANY (Exac ...

FY23 Q2 EARNINGS CALL SAFE HARBOR 2 This presentation contains certain forward-looking statements concerning Matrix Service Company's operations, economic performance and management's best judgment as to what may occur in the future. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, many of which are beyond the control of the Company, and any one of which, or a combination of which, could materially ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 15 East 5th Street, Suite 1100, Tulsa, Oklahoma 74103 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (918) 838-8822 For the quarterly period ended December 31, 2022 or ☐ Tr ...

Matrix Service Company (NASDAQ:MTRX) Q2 2023 Results Conference Call February 9, 2023 10:30 AM ET Company Participants Kellie Smythe - Senior Director of Investor Relations John Hewitt - President, Chief Executive Officer Kevin Cavanah - Vice President, Chief Financial Officer Conference Call Participants Brent Thielman - D.A. Davidson John Franzreb - Sidoti Operator Good day, and thank you for standing by, and welcome to the Matrix Service Company conference call to discuss results for the second quarter f ...

Matrix Service Company (NASDAQ:MTRX) Q1 2023 Earnings Conference Call November 8, 2022 10:30 AM ET Company Representatives John Hewitt - President, Chief Executive Officer Kevin Cavanah - Vice President, Chief Financial Officer Kellie Smythe - Senior Director, Investor Relations Conference Call Participants John Franzreb - Sidoti Brent Thielman - D.A. Davidson Operator Good day and thank you for standing by. Welcome to the Matrix Service Company Conference Call to discuss results for the First Quarter Fisc ...

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 June 30, 2022 Commission File No. 001-15461 MATRIX SERVICE COMPANY (Exact name of registrant as specified in its charter) | Delaware | 73-1352174 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 5100 E. Skelly Drive, Suite 50 ...

Matrix Service Company (NASDAQ:MTRX) Q4 2022 Earnings Conference Call October 7, 2022 10:30 AM ET Company Participants Kellie Smythe - IR John Hewitt - President & CEO Kevin Cavanah - VP & CFO Conference Call Participants Jean Ramirez - D.A. Davidson John Franzreb - Sidoti Operator Good day, and thank you for standing by. Welcome to the Matrix Service Company Conference Call to discuss Results for the Fourth Quarter and Full Year Fiscal 2022. At this time, all participants are in a listen-only mode. After t ...

FY 2022 | FOURTH QUARTER AND FISCAL YEAR END RESULTS MATRIX SERVICE COMPANY Move to a higher standard" SAFE HARBOR | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | This presentation contains certain forward -looking statements | | | | | concerning Matrix Service C ...