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]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Matrix Service Company's unaudited condensed consolidated financial statements, including income, balance sheets, and cash flows, reporting a net loss of **$12.7 million** for Q3 FY2023 and **$52.0 million** for the nine months ended March 31, 2023 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (In thousands, except per share data) | | Three Months Ended March 31, | Nine Months Ended March 31, | | :--- | :--- | :--- | | | **2023** | **2022** | **2023** | **2022** | | **Revenue** | $186,895 | $177,003 | $589,166 | $507,061 | | **Gross profit (loss)** | $4,419 | $(1,763) | $16,125 | $(2,064) | | **Operating loss** | $(12,759) | $(35,538) | $(50,290) | $(69,690) | | **Net loss** | $(12,686) | $(34,899) | $(52,025) | $(77,356) | | **Diluted loss per common share** | $(0.47) | $(1.30) | $(1.93) | $(2.90) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (In thousands) | | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | | **Total current assets** | $284,764 | $287,412 | | **Total assets** | $425,947 | $440,793 | | **Total current liabilities** | $208,409 | $177,785 | | **Total liabilities** | $245,944 | $213,087 | | **Total stockholders' equity** | $180,003 | $227,706 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Nine Months Ended March 31, In thousands) | | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided (used) by operating activities** | $2,403 | $(22,517) | | **Net cash used by investing activities** | $(6,102) | $(85) | | **Net cash used by financing activities** | $(110) | $(1,850) | | **Net decrease in cash, cash equivalents and restricted cash** | $(4,167) | $(24,786) | | **Cash, cash equivalents and restricted cash, end of period** | $73,204 | $59,092 | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue recognition, goodwill impairment, debt, and segment performance, highlighting **$542.7 million** in remaining performance obligations and a **$12.3 million** goodwill impairment - As of March 31, 2023, the company had **$542.7 million** of remaining performance obligations, expecting to recognize **$432.7 million** as revenue within the next twelve months[36](index=36&type=chunk) - A goodwill impairment charge of **$12.3 million** was recognized in the Process and Industrial Facilities segment during Q2 FY2023, triggered by adverse changes in gross profit on midstream gas processing projects[49](index=49&type=chunk) - The company's ABL facility has a maximum borrowing limit of **$90.0 million**, with a borrowing base of **$78.5 million**, **$15.0 million** outstanding, and **$44.2 million** in availability as of March 31, 2023[56](index=56&type=chunk)[57](index=57&type=chunk) - Restructuring costs for the nine months ended March 31, 2023, totaled **$2.9 million**, primarily severance and personnel-related costs, as part of the business improvement plan[85](index=85&type=chunk)[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting a **1.7** book-to-bill ratio in Q3 FY2023, **$186.9 million** consolidated revenue, and **$92.4 million** total liquidity as of March 31, 2023 [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Consolidated revenue for Q3 FY2023 was **$186.9 million**, with gross profit improving to **$4.4 million**, while nine-month revenue reached **$589.2 million** with **$16.1 million** gross profit - The company achieved a book-to-bill ratio of **1.7** for Q3 FY2023, with project awards totaling **$308.7 million**, marking the seventh consecutive quarter above **1.0**[91](index=91&type=chunk) Financial Performance Comparison (Three Months Ended March 31, in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Consolidated Revenue** | $186.9M | $177.0M | | **Consolidated Gross Profit (Loss)** | $4.4M | $(1.8)M | | **Consolidated Gross Margin** | 2.4% | (1.0)% | | **Net Loss** | $(12.7)M | $(34.9)M | | **Diluted EPS** | $(0.47) | $(1.30) | Financial Performance Comparison (Nine Months Ended March 31, in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Consolidated Revenue** | $589.2M | $507.1M | | **Consolidated Gross Profit (Loss)** | $16.1M | $(2.1)M | | **Consolidated Gross Margin** | 2.7% | (0.4)% | | **Net Loss** | $(52.0)M | $(77.4)M | | **Diluted EPS** | $(1.93) | $(2.90) | [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) The company presents non-GAAP measures, Adjusted Net Loss and Adjusted EBITDA, to provide insights into core profitability, with Adjusted Net Loss at **$8.9 million** for Q3 FY2023 Reconciliation of Net Loss to Adjusted Net Loss (In thousands) | | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | **Net loss, as reported** | $(12,686) | $(52,025) | | Goodwill impairment | — | 12,316 | | Restructuring costs | 316 | 2,881 | | Tax impact of adjustments | (81) | (3,912) | | Deferred tax asset valuation allowance | 3,583 | 13,347 | | **Adjusted net loss** | **$(8,868)** | **$(27,393)** | Reconciliation of Net Loss to Adjusted EBITDA (In thousands) | | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | **Net loss** | $(12,686) | $(52,025) | | Goodwill impairment | — | 12,316 | | Restructuring costs | 316 | 2,881 | | Stock-based compensation | 1,407 | 5,154 | | Interest expense | 268 | 1,556 | | Provision (benefit) for income taxes | (363) | (363) | | Depreciation and amortization | 3,322 | 10,499 | | **Adjusted EBITDA** | **$(7,736)** | **$(19,982)** | [Backlog](index=34&type=section&id=Backlog) Backlog increased by **12.4%** to **$832.4 million** in Q3 FY2023, driven by **$308.7 million** in project awards, resulting in a **1.7** book-to-bill ratio Backlog by Segment as of March 31, 2023 (In thousands) | Segment | Backlog Dec 31, 2022 | Project Awards Q3'23 | Revenue Q3'23 | Backlog Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Utility and Power Infrastructure** | $147,305 | $25,598 | $(35,024) | $137,879 | | **Process and Industrial Facilities** | $290,005 | $217,491 | $(99,706) | $401,099 | | **Storage and Terminal Solutions** | $303,159 | $65,657 | $(52,165) | $293,379 | | **Total** | **$740,469** | **$308,746** | **$(186,895)** | **$832,357** | - The book-to-bill ratio for the nine months ended March 31, 2023, was **1.5**, with total project awards of **$862.0 million** against revenue of **$589.2 million**[139](index=139&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was **$92.4 million** as of March 31, 2023, with **$2.4 million** cash provided by operating activities for the nine-month period, a significant improvement Liquidity Summary (In thousands) | Component | March 31, 2023 | | :--- | :--- | | Cash and cash equivalents | $48,204 | | Availability under ABL Facility | $44,200 | | **Total Liquidity** | **$92,404** | - Net cash provided by operating activities for the nine months ended March 31, 2023, was **$2.4 million**, driven by non-cash charges offsetting net loss and positive working capital changes[159](index=159&type=chunk)[160](index=160&type=chunk) - The company's ABL Facility matures on September 9, 2026, with **$15.0 million** in outstanding borrowings as of March 31, 2023, and compliance with all covenants[156](index=156&type=chunk)[158](index=158&type=chunk) [Critical Accounting Policies](index=42&type=section&id=Critical%20Accounting%20Policies) This section reiterates critical accounting policies, including Revenue Recognition and Goodwill, with no material changes from the fiscal 2022 Annual Report - Revenue on fixed-price contracts is recognized over time using the percentage-of-completion method based on costs incurred relative to total estimated costs[174](index=174&type=chunk) - Estimating total cost at completion for fixed-price contracts is complex, requiring significant judgment, with provisions made for anticipated losses[177](index=177&type=chunk) - Goodwill impairment testing compares a reporting unit's fair value (via discounted cash flow and market multiple analyses) with its carrying value, requiring significant judgment[182](index=182&type=chunk)[183](index=183&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk were reported compared to the Annual Report on Form 10-K for the fiscal year ended June 30, 2022 - No material changes in market risk have occurred since the Form 10-K for the fiscal year ended June 30, 2022[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal controls over financial reporting - Disclosure controls and procedures were evaluated by management, including the CEO and CFO, and deemed effective as of March 31, 2023[190](index=190&type=chunk) - No material changes to internal controls over financial reporting occurred during the quarter ended March 31, 2023[191](index=191&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are expected to materially affect its financial condition or operations - The company is involved in legal proceedings but anticipates no material impact on its business, financial condition, or liquidity[194](index=194&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the Annual Report on Form 10-K for the fiscal year ended June 30, 2022 - No material changes in Risk Factors were reported compared to the Form 10-K for the fiscal year ended June 30, 2022[195](index=195&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no common stock purchases in Q3 FY2023, has never paid cash dividends, and is restricted to stock dividends by its ABL Facility - No purchases of the company's common stock were made during the third quarter of fiscal year 2023[196](index=196&type=chunk) - The company has never paid cash dividends and its ABL Facility restricts it to stock dividends only[197](index=197&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including CEO/CFO certifications, Mine Safety Disclosures, and XBRL data files - The report includes required exhibits such as CEO/CFO certifications under Sarbanes-Oxley, Mine Safety Disclosures, and XBRL interactive data files[200](index=200&type=chunk)[202](index=202&type=chunk)

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 ...

Financial Performance - Revenue for Q2 FY2023 was $193.8 million, down from $208.4 million in Q1 FY2023, attributed to ongoing project work and delays in new project awards[94] - Adjusted net loss for Q2 FY2023 was $14.4 million, compared to a loss of $10.2 million in Q2 FY2022, with adjusted loss per share at $(0.53)[97] - Consolidated revenue increased to $193.8 million in Q2 FY2023 from $162.0 million in Q2 FY2022, driven by growth in Process and Industrial Facilities and Storage and Terminal Solutions segments[103] - Adjusted EBITDA for Q2 FY2023 was $(13.1) million, compared to $(7.1) million in Q2 FY2022, indicating ongoing operational challenges[102] - The company recorded a net loss of $32.8 million, or $1.22 per fully diluted share, for the three months ended December 31, 2022, compared to a net loss of $24.9 million, or $0.93 per fully diluted share, in the same period last year[109] Project Awards and Backlog - Project award volumes improved, with $318.7 million in project awards during Q2 FY2023, the highest since Q1 FY2020[93] - Backlog increased by $124.8 million or 20.3% in Q2 fiscal 2023, with project awards totaling $318.7 million and a book-to-bill ratio of 1.6[141] - In the Utility and Power Infrastructure segment, backlog rose by 47.6% due to $98.0 million in project awards, primarily for LNG peak shaving facility upgrades[142] - The Process and Industrial Facilities segment saw a 9.2% backlog increase with $105.2 million in project awards, driven by strong client spending on refinery maintenance[143] - Backlog in the Storage and Terminal Solutions segment increased by 21.2% with $115.5 million in project awards, highlighting significant opportunities in LNG and hydrogen projects[144] Revenue Segmentation - Revenue for the Utility and Power Infrastructure segment was $50.5 million for the three months ended December 31, 2022, down from $54.8 million in the same period last year, primarily due to lower volumes of LNG peak shaving work[110] - The Process and Industrial Facilities segment revenue increased to $80.8 million for the three months ended December 31, 2022, compared to $50.3 million in the same period last year, driven by higher volumes of midstream gas processing capital work[113] - The Storage and Terminal Solutions segment revenue was $62.5 million for the three months ended December 31, 2022, up from $56.9 million in the same period last year, attributed to higher volumes of specialty vessel capital projects[117] - Consolidated revenue for the six months ended December 31, 2022 was $402.3 million, compared to $330.1 million in the same period last year, with increases in the Process and Industrial Facilities and Storage and Terminal Solutions segments[121] Costs and Expenses - Gross margin was (0.7%) in Q2 FY2023, significantly lower than 6.2% in Q1 FY2023, impacted by a $9.6 million project adjustment and under recovery of construction overhead costs[95] - SG&A expenses rose to $17.5 million in Q2 FY2023 from $15.9 million in Q2 FY2022, primarily due to higher project pursuit costs[105] - The company recorded restructuring costs of $2.6 million for the six months ended December 31, 2022, compared to $1.3 million in the same period last year[124] - Interest expense was $1.3 million for the six months ended December 31, 2022, down from $2.5 million in the same period last year[126] Goodwill and Impairments - Goodwill impairment recorded was $12.3 million in Q2 FY2023, reflecting challenges in project execution and market conditions[105] - Goodwill impairment of $12.3 million was recorded during the reporting period[159] - The company utilizes a discounted cash flow analysis and market multiples to determine the estimated fair value of reporting units for goodwill impairment testing[181] Liquidity and Cash Flow - Total liquidity as of December 31, 2022, was $80.5 million, comprising $31.5 million in cash and cash equivalents and $49.0 million available under the ABL Facility[150] - Cash and cash equivalents increased from $14.3 million on September 30, 2022, to $31.5 million by December 31, 2022[151] - The company expects liquidity to improve due to anticipated better operating results and approximately $13 million in tax refunds expected in Q3 fiscal 2023[152] - Cash used by operating activities for the six months ended December 31, 2022 totaled $17.6 million, with a net loss of $39.3 million[159] - Accounts receivable increased by $28.1 million during the six months ended December 31, 2022, negatively impacting cash flows from operating activities[164] Compliance and Controls - The company maintains effective disclosure controls and procedures as of December 31, 2022, ensuring timely reporting in compliance with SEC rules[187] - There have been no changes in internal controls over financial reporting that materially affected the company's reporting during the quarter ended December 31, 2022[188]

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 ...

Financial Data and Key Metrics Changes - The company's revenue for Q1 2023 increased to $208 million, representing a 24% year-over-year growth, primarily driven by increased reimbursable work [20] - Gross margins improved to 6.2%, the highest in over two years, due to better project bookings and backlog profile [21][22] - The net loss for the quarter was $6.5 million, or $0.24 per share, while the adjusted net loss was $4.2 million, with an adjusted EPS loss of $0.15 [25] Business Line Data and Key Metrics Changes - In the Storage and Terminal Solutions segment, revenue increased to $76.9 million, with a gross margin of 9.8%, driven by strong execution and a better portfolio mix [28][29] - The Utility and Power Infrastructure segment reported revenue of $44.9 million, with a gross margin of 3.8%, showing improvement due to strong execution on electrical and T&D work [25][26] - The Process and Industrial Facilities segment maintained strong revenue at $86.6 million, with a gross margin of 5% [27] Market Data and Key Metrics Changes - The project opportunity pipeline increased to $6.5 billion as of September 30, 2022, reflecting a significant uptick in project awards [13] - The company received project awards totaling $235 million in Q1, resulting in a book-to-bill ratio of 1.1, with an additional $150 million in awards received in October [10] Company Strategy and Development Direction - The company is focusing on infrastructure projects related to low carbon objectives, including LNG, ammonia, hydrogen, and renewable fuels [14] - Management expressed confidence in the ability to deliver improved performance through fiscal 2023, supported by a streamlined organization and increasing project volume [15] Management's Comments on Operating Environment and Future Outlook - Management noted that concerns about energy security and the push for cleaner energy are driving client spending decisions [13] - The company expects liquidity to improve through the remainder of the fiscal year, despite temporary decreases due to increased working capital demands [33] Other Important Information - The company incurred $1.3 million in restructuring costs as part of its transformation efforts [23] - Total liquidity at September 30, 2022, was $56.6 million, with $15 million in debt [30] Q&A Session Summary Question: What is driving the significant increase in the opportunity pipeline? - Management indicated that increased activity in specialty vessel storage, hydrogen-related projects, and LNG projects are contributing to the pipeline growth [39] Question: What is the outlook for the utility side of the business? - Management expects modest revenue improvement in the Utility and Power Infrastructure segment as new capital projects ramp up [41][43] Question: Are the lower-priced jobs from the downturn being worked through as expected? - Management confirmed that the projects of concern were primarily in the Utility and Power Infrastructure segment and are expected to be completed by the third quarter [44][45] Question: Will working capital requirements improve for the balance of the year? - Management confirmed that working capital requirements are expected to improve as the mix of work shifts towards capital projects [46][47] Question: How does the visibility of larger project opportunities compare to previous years? - Management noted that the average size of projects in the opportunity pipeline has increased, with a higher quality of clients and readiness [51][52] Question: Are there any prospects in the crude storage market? - Management acknowledged some prospects for crude storage but noted that the market is currently weak due to low storage prices [57][59] Question: What measures are being taken to mitigate supply chain issues? - Management is including potential supply chain delays in project pricing and schedules and is working with clients to manage risks [61][62]

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 ...