Mistras (US:MG)2024-05-01 20:04Financial Performance - Q1 2024 revenue reached $184.4 million, a 9.8% increase from the prior year, marking the highest Q1 revenue since 2018[1] - Net income for Q1 2024 was $1.0 million, improving from a net loss of $5.0 million in the prior year period[3] - Adjusted EBITDA for Q1 2024 was $16.2 million, up 55.1% from $10.4 million in the prior year[8] - Gross profit increased by 10.9% to $51.1 million, with a gross profit margin of 27.7%, reflecting a 30 basis point improvement[3] - Revenue for Q1 2024 was $184,442, an increase of 9.0% compared to $168,016 in Q1 2023[27] - Gross profit for Q1 2024 was $51,090, up 10.9% from $46,077 in Q1 2023[27] - Net income attributable to Mistras Group, Inc. for Q1 2024 was $995, compared to a net loss of $4,986 in Q1 2023[27] - The diluted EPS (GAAP) for Q1 2024 was $0.03, compared to a diluted loss per share of $0.17 in Q1 2023[45] - Net income excluding special items (non-GAAP) for Q1 2024 was $2,172,000, compared to a loss of $3,411,000 in Q1 2023[45] Revenue Breakdown - Revenue growth was driven by a 14.7% increase in Oil & Gas and an 18.9% increase in Aerospace and Defense[4] - North America revenue increased to $150,349 in Q1 2024, a rise of 9.8% from $136,932 in Q1 2023[29] - International revenue grew to $33,047, up 12.0% from $29,407 in Q1 2023[29] - Oil & Gas revenue reached $113,165 in Q1 2024, a significant increase of 14.7% from $98,665 in Q1 2023[32] Expenses and Costs - Selling, general and administrative expenses decreased by $1.6 million, or 3.8%, to $41.2 million due to Project Phoenix initiatives[6] - Interest expense increased to $4,430,000 in Q1 2024 from $4,068,000 in Q1 2023[44] - The company incurred $1,557,000 in reorganization and other related costs in Q1 2024, down from $2,076,000 in Q1 2023[44] Cash Flow and Debt - Free cash flow for Q1 2024 was negative $5.3 million, compared to negative $0.3 million in the prior year, primarily due to increased working capital[10] - Gross debt as of March 31, 2024, was $198.4 million, up from $190.4 million as of December 31, 2023[11] - Total liabilities increased to $354,662 as of March 31, 2024, compared to $344,273 as of December 31, 2023[25] - Total debt (net) as of March 31, 2024, was $181,571, up from $172,753 as of December 31, 2023[41] Future Outlook - The company aims for an incremental overhead reduction of $12 million in 2024 compared to the prior year[4] - The company reaffirms its full-year 2024 guidance, projecting revenue between $725 million and $750 million and adjusted EBITDA between $84 million and $89 million[16] - The company plans to continue focusing on market expansion and new technology development to drive future growth[44] - Mistras Group, Inc. is committed to improving operational efficiency and reducing costs in the upcoming quarters[44] Special Items - Special items for Q1 2024 amounted to $1,558,000, with a net tax impact of $381,000[45] - Mistras Group, Inc. experienced a foreign exchange gain of $561,000 in Q1 2024, compared to a loss of $219,000 in Q1 2023[44]