Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q4 2024 Earnings Presentation
25 slides from Matrix Service's earnings presentation, September 2024
Slide 1: FY24 Q4 Presentation
FY24 Q4 PRESENTATION 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: About Matrix
ABOUT MATRIX 3
Slide 4: Company Overview
COMPANY OVERVIEW LEADER IN ENERGY & INDUSTRIAL INFRASTRUCTURE SOLUTIONS WHO WE ARE Matrix is a top tier North American energy and INFRASTRUCTURE MEGATRENDS PROVIDE LONG RUNWAY AND industrial engineering and construction MULTI-BILLION DOLLAR PROJECT OPPORTUNITY PIPELINE contractor committed to delive
Slide 5: Our People and Our Values | The Foundation of Our Success
OUR PEOPLE AND OUR VALUES | THE FOUNDATION OF OUR SUCCESS SAFETY | INTEGRITY | POSITIVE RELATIONSHIPS | STEWARDSHIP | COMMUNITY | DELIVER THE BEST Consistently ranked among OSHA VPP Star for safety the Top Contractors by and health management at Engineering-News Record our Okla. fabrication facility
Slide 6: Long-Standing Client Relationships
LONG-STANDING CLIENT RELATIONSHIPS SUPPORTING THE MOST WELL-RECOGNIZED BRANDS IN THE WORLD Improving the efficiency and resilience of our clients’ critical energy and industrial infrastructure while accelerating efforts toward a cleaner, more sustainable world. 6
Slide 7: 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 8: Our Strategy
OUR STRATEGY STRENGTHEN THE CORE EXPAND IN EXISTING MARKETS GROW INTO NEW MARKETS Traditional energy tanks and terminals LNG and NGL storage terminals Renewable energy infrastructure such Refining Midstream gas processing as hydrogen and biofuels Thermal vacuum chambers Chemicals and petrochemicals
Slide 9: Our Turnaround Story | Returning to Profitability
OUR TURNAROUND STORY | RETURNING TO PROFITABILITY FY2020 FY2021 FY2022 FY2023 FY2024 EXTERNAL MARKET FACTORS NEAR-TERM OUTLOOK GLOBAL PANDEMIC: Strong revenue growth • ENERGY DEMAND DESTRUCTION • CLIENTS PAUSE CONSTRUCTION PROJECTS, DEFER MAINTENANCE expected in FY2025 • MINIMAL PROJECT OPPORTUNITIE
Slide 10: FY 2024 | An Important Inflection Point
FY 2024 | AN IMPORTANT INFLECTION POINT BACKLOG $1,430M PROJECT AWARDS OPPORTUNITY PIPELINE $1,091M $798M $271M $104M $1.1B $3.2B $1.2B $460M $804M 1.5x Book-to-Bill $182M 52% $6.1B 20% $380M $1.7B $360M 28% $252M Data is as of 06/30/24 and includes projects that have been or are expected to be bid
Slide 11: Backlog and Revenue
BACKLOG AND REVENUE $1,429 $1,429 $ in millions FY 2025 REVENUE $1,098 $1,101 $1,090 $1,090 GUIDANCE AS OF SEPTEMBER 9, 2024 $795 $900-$950M $758 $758 $708 $673 $728 24-30% GROWTH $589 $589 OVER FY 2024 $463 $463 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 EXTERNAL MARKET FACTORS GLOBAL PANDEMIC (OFFI
Slide 12: Opportunity Pipeline $6.1B
OPPORTUNITY PIPELINE OUR COMPETITIVE ADVANTAGES • Strong reputation for safety and quality • Engineering experts that help set industry standards • Multi-disciplined engineering and technology integration services • Construction delivery to support mission-critical client $6.1B initiatives across th
Slide 13: The Matrix Opportunity
THE MATRIX OPPORTUNITY KEY LONG-TERM FY 2025 REVENUE GUIDANCE FINANCIAL TARGETS* AS OF SEPTEMBER 9, 2024 $900-$950M < 6% < 6.5% Net working SG&A margin 24-30% GROWTH capital target OVER FY 2024 > 4.5% > 12% FISCAL 2024 | YEAR IN REVIEW Operating margin ROIC target • Backlog increased 31% on $1.1 bil
Slide 14: Appendix
APPENDIX 14
Slide 15: Fiscal Year 2024, Q4
FISCAL YEAR 2024, Q4 ($ in millions) • Cash increased $46 million during the quarter as operating activities produced $47 million of cash. • Liquidity increased $34.5 million in the quarter primarily from the positive cash generation. o Borrowing capacity under the credit facility fluctuates month-t
Slide 16: Quarterly Results | Consolidated
QUARTERLY RESULTS | CONSOLIDATED (In thousands except %) FY2024, Q4 FY2024, Q3 • Consolidated revenue improved by 14% from the Revenue $ 189,499 $ 166,013 prior quarter Gross Profit 12,447 5,578 • Gross margin of 6.6% was impacted by over 400 Gross Margin 6.6% 3.4% basis points as a result of under-
Slide 17: Quarterly Results | Storage and Terminal Solutions
QUARTERLY RESULTS | STORAGE AND TERMINAL SOLUTIONS (In thousands except %) FY2024, Q4 FY2024, Q3 • Revenue increased 30% to $70 million from the Revenue $ 69,992 $ 54,304 prior quarter as work began on previously awarded specialty vessel projects. Gross Profit 2,193 2,313 Gross Margin 3.1% 4.3% • Gr
Slide 18: Quarterly Results | Utility and Power Infrastructure
QUARTERLY RESULTS | UTILITY AND POWER INFRASTRUCTURE (In thousands except %) FY2024, Q4 FY2024, Q3 • Revenue increased over 40% to $65M as from the Revenue $ 65,261 $ 46,120 prior period, driven by increased activity on previously awarded peak shaver projects. Gross Profit 2,712 1,409 Gross Margin 4
Slide 19: Quarterly Results | Process and Industrial Facilities
QUARTERLY RESULTS | PROCESS AND INDUSTRIAL FACILITIES (In thousands except %) FY2024, Q4 FY2024, Q3 • Revenue decreased 18% to $54 million from the prior Revenue $ 54,246 $ 65,589 quarter and is expected to be substantially lower over the next couple of quarters due to seasonality, timing Gross Prof
Slide 20: Quarterly Results (Year over Year) | Consolidated
QUARTERLY RESULTS (YEAR OVER YEAR) | CONSOLIDATED (In thousands except %) FY2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 189,499 $ 205,854 $ 728,213 $ 795,020 Gross Profit 12,447 14,695 40,473 30,820 Gross Margin 6.6% 7.1% 5.6% 3.9% SG&A Expense 17,293 17,031 70,085 68,249 Operating Income (Loss)
Slide 21: Quarterly Results (Year over Year) | Storage & Terminal Solutions
QUARTERLY RESULTS (YEAR OVER YEAR) | STORAGE & TERMINAL SOLUTIONS (In thousands except %) FY2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 69,992 $ 64,079 $ 276,800 $ 255,693 Gross Profit (Loss) 2,193 2,067 11,297 10,470 Gross Margin 3.1% 3.2% 4.1% 4.1% SG&A Expense 5,461 4,712 19,823 20,054 Operat
Slide 22: Quarterly Results (Year over Year) | Utility & Power Infrastructure
QUARTERLY RESULTS (YEAR OVER YEAR) | UTILITY & POWER INFRASTRUCTURE (In thousands except %) FY2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 65,261 $ 39,075 $ 183,920 $ 169,504 Gross Profit 2,712 3,770 9,232 10,699 Gross Margin 4.2% 9.6% 5.0% 6.3% SG&A Expense 2,585 1,651 8,844 7,045 Operating Inco
Slide 23: Quarterly Results (Year over Year) | Process & Industrial Facilities
QUARTERLY RESULTS (YEAR OVER YEAR) | PROCESS & INDUSTRIAL FACILITIES (In thousands except %) FY 2024, Q4 FY2023, Q4 YTD 4Q24 YTD 4Q23 Revenue $ 54,246 $ 102,700 $ 266,260 $ 369,823 Gross Profit 8,336 8,397 21,852 10,756 Gross Margin 15.4% 8.2% 8.2% 2.9% SG&A Expense 2,470 3,601 10,354 14,909 Operati
Slide 24: Adjusted Net Income (Loss)
ADJUSTED NET INCOME (LOSS) (In thousands except per share amounts) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 FY2024, Q3 FY2024, Q4 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) $ (2,851) $ (14,581) $ (4,377) Restructuring costs 1,287 1,278 3
Slide 25: Adjusted EBITDA
ADJUSTED EBITDA (In thousands) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 FY2024, Q3 FY2024, Q4 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) $ (2,851) $ (14,581) $ (4,377) Restructuring costs 1,287 1,278 316 261 _ _ _ 501 Goodwill impairment
Matrix Service Company — Q4 2024 Earnings Presentation on 6ix