Matrix Service pany(US:MTRX)2024-09-10 20:11Financial Performance - Total revenue for fiscal 2024 was $795.0 million, a decrease of $66.8 million or 8% compared to fiscal 2023[140]. - Total revenue for fiscal 2024 was $728.2 million, a decrease of $66.8 million or 8% compared to $795.0 million in fiscal 2023[147]. - Revenue for the fiscal year ended June 30, 2024, was $728,213,000, a decrease of 8.4% from $795,020,000 in the previous year[223]. - Gross profit increased to $40,473,000 for the fiscal year ended June 30, 2024, compared to $30,820,000 in the prior year, reflecting a significant improvement[223]. - Net loss for the fiscal year ended June 30, 2024, was $24,976,000, an improvement from a net loss of $52,361,000 in the previous year, indicating a reduction of 52.3%[225]. - The company reported a comprehensive loss of $25,742,000 for the fiscal year ended June 30, 2024, down from $52,955,000 in the previous year, indicating a 51.4% improvement[225]. Backlog and Awards - The company achieved $1.1 billion in new awards added to backlog during fiscal 2024, resulting in a total backlog of $1.4 billion and a book-to-bill ratio of 1.5[134]. - Backlog in the Storage and Terminal Solutions segment increased by 194.9%, with project awards totaling $804.4 million during fiscal 2024[137]. - The Utility and Power Infrastructure segment booked $104.1 million in project awards during fiscal 2024, with strong long-term opportunities expected[138]. - The Process and Industrial Facilities segment saw project awards of $182.4 million, driven by client spending on refinery maintenance and turnaround operations[138]. - Approximately 47% of the total backlog reported as of June 30, 2024, is expected to be recognized as revenue within fiscal 2025[139]. Cash Flow and Liquidity - The company generated positive cash flows from operations, improving its overall cash balance by $60.8 million during fiscal 2024[134]. - Cash flows provided by operating activities totaled $72.6 million for the fiscal year ended June 30, 2024[165]. - Unrestricted cash and cash equivalents at June 30, 2024, were $115.6 million, contributing to total liquidity of $169.6 million[156]. - The company repaid all outstanding borrowings under the ABL Facility during fiscal 2024, with a borrowing base of $60.9 million[162]. - The company experienced a net increase in cash and cash equivalents of $60,803 thousand, a significant improvement from an increase of $2,441 thousand in the prior year[229]. Segment Performance - Storage and Terminal Solutions revenue increased by $21.1 million, or 8%, to $276.8 million in fiscal 2024, driven by specialty vessel projects[149]. - Utility and Power Infrastructure revenue rose by $14.4 million, or 9%, to $183.9 million, primarily due to higher volumes from peak shaving projects[151]. - Process and Industrial Facilities revenue decreased by $103.6 million, or 28%, to $266.3 million, mainly due to lower volumes in midstream gas processing and refinery maintenance[153]. - The segment gross margin for Process and Industrial Facilities improved to 8.2% in fiscal 2024 from 2.9% in fiscal 2023, reflecting strong project execution[154]. Goodwill and Impairment - The company performed its annual goodwill impairment test as of May 31, 2024, resulting in no impairment, but indicated that two reporting units with a combined total of $16.6 million of goodwill were at higher risk of future impairment[184]. - The company recognized a goodwill impairment of $12,316 thousand in the previous fiscal year, which was not present in the current fiscal year, indicating improved asset performance[229]. - The estimated fair values of the two reporting units with a combined total of $16.6 million of goodwill exceed their carrying values by 13% to 70%[217]. Stock and Compensation - As of June 30, 2024, there were 1,349,037 shares available for repurchase under the Stock Buyback Program, with no repurchases made during fiscal 2024[172]. - Total stock-based compensation expense for fiscal year ended June 30, 2024, was $7.7 million, compared to $6.8 million in fiscal 2023[318]. - The company has a total of 2,472,567 shares available for grant under the amended 2020 Stock and Incentive Compensation Plan as of June 30, 2024[320]. Tax and Valuation - The total income tax provision for fiscal 2024 was $(36,000), compared to $(400,000) in fiscal 2023 and $5.6 million in fiscal 2022[295]. - Deferred tax assets totaled $5.5 million as of June 30, 2024, with a valuation allowance of $(49.4 million)[297]. - The company has net operating loss carryforwards and tax credit carryforwards, with a valuation allowance reducing the recognized tax benefit[300]. Operational Risks - The company has no direct commodity exposure but faces risks from rising prices of key materials like steel and copper due to global supply chain disruptions[193]. - A 10% unfavorable change in the Canadian Dollar against the U.S. Dollar would not have materially impacted financial results for the fiscal year ended June 30, 2024[192].