Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q3 2024 Earnings Presentation
20 slides from Matrix Service's earnings presentation, May 9, 2024
Slide 1: FY24 Q3 Earnings Call
FY24 Q3 EARNINGS CALL 1
Slide 2: Safe Harbor
SAFE HARBOR 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 wil
Slide 3: Investor Conferences and Corporate Access Opportunities
INVESTOR CONFERENCES AND CORPORATE ACCESS OPPORTUNITIES JUNE 4 – 5, 2024 Stifel Cross Sector Insights Conference, Boston, Massachusetts CONTACT Kellie Smythe, Senior Director of Investor Relations ir@matrixservicecompany.com 3
Slide 4: Text or Dial 988, 911, 211
Text or Dial 988 FOR IMMEDIATE SUPPORT FOR: Suicide Intervention and Crisis Support, Mental Health Crisis, Substance Use Crises and Emotional Distress Dial 911 FOR FIRST-RESPONDER DISPATCH FOR: Medical Emergencies, Fires, or to Report a Crime, Disaster Response, or Life-threatening Situation Dial 21
Slide 5: Opening Remarks
OPENING REMARKS FISCAL 2024, Q3 OUTCOMES STRATEGIC ROADMAP STRENGTHS: COMMERCIAL GROWTH: Leverage global megatrends to achieve organic and inorganic growth with a focus on higher value projects • Continued backlog strength supporting: • Traditional, transitional, and emerging energy industry storage
Slide 6: Project Awards and Backlog
PROJECT AWARDS AND BACKLOG PROJECT AWARDS BACKLOG $1,447M $1,450M $1,390M $1,090M FY 2023, Q3 FY 2024, Q3 $595 $658 $738 AWARDS BOOK TO BILL AWARDS BOOK TO BILL $271 STORAGE & TERMINAL $66M 1.3x $135M 2.5x $832M SOLUTIONS $293 UTILITY & POWER $26M 0.7x $27M 0.6x $460 INFRASTRUCTURE $450 $451 $138 $4
Slide 7: Quarterly Results | Consolidated
QUARTERLY RESULTS | CONSOLIDATED (In thousands except %) FY2024, Q3 FY2023, Q3 TTM 3Q24 TTM 3Q23 Revenue $ 166,013 $ 186,895 $ 744,568 $ 789,885 Gross Profit 5,578 4,419 42,721 16,983 Gross Margin 3.4% 2.4% 5.7% 2.2% SG&A Expense 19,948 16,862 69,823 69,316 Operating Income (Loss) (14,370) (12,759)
Slide 8: Quarterly Results | Storage & Terminal Solutions
QUARTERLY RESULTS | STORAGE & TERMINAL SOLUTIONS (In thousands except %) FY2024, Q3 FY2023, Q3 TTM 3Q24 TTM 3Q23 Revenue $ 54,304 $ 52,165 $ 270,887 $ 251,882 Gross Profit (Loss) 2,313 (810) 11,171 8,880 Gross Margin 4.3% (1.6%) 4.1% 3.5% SG&A Expense 5,395 5,735 19,074 19,777 Operating Income (Loss
Slide 9: Quarterly Results | Utility & Power Infrastructure
QUARTERLY RESULTS | UTILITY & POWER INFRASTRUCTURE (In thousands except %) FY2024, Q3 FY2023, Q3 TTM 3Q24 TTM 3Q23 Revenue $ 46,120 $ 35,024 $ 157,734 $ 179,224 Gross Profit 1,409 2,790 10,291 5,433 Gross Margin 3.1% 8.0% 6.5% 3.0% SG&A Expense 2,733 1,869 7,910 8,057 Operating Income (Loss) (1,324)
Slide 10: Quarterly Results | Process & Industrial Facilities
QUARTERLY RESULTS | PROCESS & INDUSTRIAL FACILITIES (In thousands except %) FY 2024, Q3 FY2023, Q3 TTM 3Q24 TTM 3Q23 Revenue $ 65,589 $ 99,706 $ 314,714 $ 358,779 Gross Profit 1,767 3,160 21,913 4,966 Gross Margin 2.7% 3.2% 7.0% 1.4% SG&A Expense 2,590 3,556 11,484 15,062 Operating Income (Loss) (82
Slide 11: Fiscal Year 2024, Q3 Cash and Liquidity
FISCAL YEAR 2024, Q3 ($ in millions) • Cash increased $23 million during the quarter as operating activities produced $25 million of cash. • CapEx in the quarter included $25M $25M the purchase of a fabrication Restricted Restricted facility. • Liquidity increased $29 million in the quarter from the
Slide 12: Our Turnaround Story | Backlog and Revenue
OUR TURNAROUND STORY | BACKLOG AND REVENUE Millions $1,600 $1,417 $1,450 $1,400 $1,219 $1,219 • Backlog has tripled since $1,101 $1,200 $1,092 $1,098 FY2021 with significant $1,098 $1,090 $1,090 increases in multi-year $1,000 project awards, especially in $795 $708 late FY2023 and early $800 $758 $7
Slide 13: Global Megatrends Are Driving Significant Infrastructure Demand
GLOBAL MEGATRENDS ARE DRIVING SIGNIFICANT INFRASTRUCTURE DEMAND PROVIDING LONG RUNWAY AND MULTI-BILLION DOLLAR PROJECT OPPORTUNITY PIPELINE GLOBAL MEGATRENDS LOW CARBON / ENERGY GLOBAL DEMAND SYSTEM RELIABILITY GEOPOLITICAL CLEAN ENERGY SUPPLY FOR LOW-COST AND RESILIENCE INSTABILITY TRANSITION ASSUR
Slide 14: Our Opportunity Pipeline and Competitive Advantages
OUR OPPORTUNITY PIPELINE OUR COMPETITIVE ADVANTAGES • Strong reputation for safety and Supports traditional quality and lower carbon NATURAL GAS AND NGLs • Engineering experts that help set 35% industry standards energy mix. • Multi-disciplined engineering and technology integration services $6.1B A
Slide 15: The Matrix Opportunity
THE MATRIX OPPORTUNITY KEY LONG-TERM • With significantly improved backlog we expect to see a marked FINANCIAL TARGETS* improvement in revenue, providing for better construction overhead absorption, leverage of SG&A, and improved bottom < 6% < 6.5% line performance. Net working SG&A margin capital t
Slide 16: Q&A
Q&A 16
Slide 17: Investor Conferences and Corporate Access Opportunities
INVESTOR CONFERENCES AND CORPORATE ACCESS OPPORTUNITIES JUNE 4 – 5, 2024 Stifel Cross Sector Insights Conference, Boston, Massachusetts CONTACT Kellie Smythe, Senior Director of Investor Relations ir@matrixservicecompany.com 17
Slide 18: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP TO NON-GAAP RECONCILIATIONS 18
Slide 19: Adjusted Net Loss
ADJUSTED NET LOSS (In thousands except per share amounts) FY2022, Q4 FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 FY2024, Q3 Net Income (Loss), as $ 13,456 $ (6,512) $(32,827) $(12,686) $ (336) $ (3,167) $ (2,851) $(14,581) reported Restructuring costs 924 1,287 1,278 316 261 _
Slide 20: Adjusted EBITDA
ADJUSTED EBITDA (In thousands) FY2022, Q4 FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 FY2024, Q3 Net Income (Loss), as $ 13,456 $ (6,512) $(32,827) $(12,686) $ (336) $ (3,167) $ (2,851) $(14,581) reported Restructuring costs 924 1,287 1,278 316 261 _ _ _ Goodwill impairment _ _
Matrix Service Company — Q3 2024 Earnings Presentation on 6ix