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Mistras (MG) - 2024 Q4 - Annual Results
MGMistras (MG)2025-03-05 21:25

Revenue and Income Growth - Full year 2024 revenue increased by 3.4% to 729.6million,withgrowthacrossallreportedsegmentsandindustries[6]−Netincomeforfullyear2024roseby208.6729.6 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]−AdjustedEBITDAforfullyear2024was0.60[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,anincreasefrom729,640,000, 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,comparedtoanetlossof18,970,000, 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,upfrom82,457,000, 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 50.1million,anincreaseof87.450.1 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,significantlyhigherthan27,143,000, 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,comparedto50,129,000, compared to 26,748,000 in 2023, an increase of about 87.5%[43] - The company reported a free cash flow of 18.970millionfortheyearendedDecember31,2024,comparedtoanegativefreecashflowof18.970 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 87.0millionforfullyear2024[6]−TheInternationalsegmentreportedarevenueincreaseof3.687.0 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 13.7million,withincomefromoperationsincreasingby840.113.7 million, with income from operations increasing by 840.1% to 2.5 million[13] - Oil & Gas segment revenue for 2024 was 418,923,000,slightlyupfrom418,923,000, 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 156.4million,representing21.4156.4 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)millionattheendof2023[28]−Totalcurrentassetsdecreasedto(28.942) million at the end of 2023[28] - Total current assets decreased to 172.470 million as of December 31, 2024, down from 180.356millionattheendof2023[28]−ThetotalliabilitiesofMistrasGroup,Inc.decreasedto180.356 million at the end of 2023[28] - The total liabilities of Mistras Group, Inc. decreased to 324.143 million from 344.273millionyear−over−year[28]DebtManagement−Thecompanyreportedatotalgrossdebtof344.273 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 190,399,000in2023,indicatingareductionofabout10.9190,399,000 in 2023, indicating a reduction of about 10.9%[47] - Net debt decreased to 151,330,000 in 2024 from 172,753,000in2023,reflectingadecreaseofapproximately12.4172,753,000 in 2023, reflecting a decrease of approximately 12.4%[47] - The company’s gross debt decreased by 20.8 million to 169.6millionasofDecember31,2024[15]QuarterlyPerformance−ForthequarterendedDecember31,2024,MistrasGroup,Inc.reportedrevenueof169.6 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 182.073millioninthesamequarterof2023[30]−Grossprofitforthequarterwas182.073 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 5.298millionforthequarter,comparedtoanetlossof5.298 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 136.938million,downfrom136.938 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 5.278million,comparedtoalossof5.278 million, compared to a loss of 2.514 million in Q4 2023[52] - Diluted EPS (GAAP) for Q4 2024 was 0.17,recoveringfromalossof0.17, recovering from a loss of 0.08 in Q4 2023[52] Special Items and Tax Impact - Special items, net of tax, totaled 2.248millionforQ42024,comparedto2.248 million for Q4 2024, compared to 5.377 million in Q4 2023[52] - The company incurred reorganization and other related costs of 2.085millioninQ42024,downfrom2.085 million in Q4 2024, down from 6.252 million in Q4 2023[52] - Total special items for the year 2024 were 4.884million,significantlylowerthan4.884 million, significantly lower than 27.135 million in 2023[52] - The tax impact on special items for the year 2024 was (1.168)million,comparedto(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]