Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q2 FY2021 Earnings Presentation
28 slides from Matrix Service's earnings presentation, Mar 23, 2021
Slide 1: Fiscal 2021 Second Quarter, December 31, 2020
FISCAL 2021 I SECOND QUARTER December 31, 2020 Exhibit 99
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: Why MTRX Is a Good Long-Term Investment
• Diversified, premier engineering and construction contractor • Brand leader in utility and process infrastructure, process and industrial facilities, and storage and terminal solutions • Known for consistently strong balance sheet and liquidity • Streamlined cost structure • Diverse and engaged Bo
Slide 4: About Matrix Service Company
ABOUT MATRIX SERVICE COMPANY Matrix is a top tier North American industrial engineering and construction contractor committed to delivering the highest quality work – safely, on time and on budget. OUR PURPOSE We build a brighter future, improve quality of life, and create long-term value for our pe
Slide 5: Core Values and Recognition
Our commitment has led to consistent recognition for excellence by our clients, our industry, the business world, and our employees Commitment to safety Put safety first for yourself and others. Create a zero-incident environment through leadership. Integrity Do the right thing every time, ethically
Slide 6: Streamlined Operations and Current Environment
Streamlined operations • Significant cost reductions of approximately $60 million annually realized, focus on achieving continuous improvement and efficiencies • Balancing cost reductions with revenue recovery outlook • Margin profile expected to improve based on strategic changes, reduced costs and
Slide 7: Fiscal 2021 Second Quarter Results
($ in thousands, except EPS) FISCAL 2021 | SECOND QUARTER RESULTS Revenue 167,468$ 318,677$ Gross profit 15,313 9.1 % 30,001 9.4 % SG&A 16,724 10.0 % 23,165 7.3 % Restructuring and impairments 5,045 3.0 % 38,515 12.1 % Operating loss (6,456) (3.9)% (31,679) (9.9)% Adjusted operating income (loss)(1)
Slide 8: Fiscal 2021 Second Quarter Segment Results
FISCAL 2021 | SECOND QUARTER SEGMENT RESULTS ($ in thousands) FY 2021, Q2 Utility & Power Infrastructure Process & Industrial Facilities Storage & Terminal Solutions Corporate TOTAL Revenue 52,023$ 51,262$ 64,183$ 167,468$ Gross profit 5,597$ 7,864$ 1,852$ 15,313$ Gross margin 10.8% 15.3% 2.9% 9.1%
Slide 9: Fiscal 2021 Second Quarter Liquidity Bridge
FISCAL 2021 | SECOND QUARTER LIQUIDITY BRIDGE Overall liquidity position is strong. Cash flow from operations was $20.8 million in the quarter enabling us to repay all debt and increase cash by $11.3 million to $93.5 million. ($ in millions) 9
Slide 10: Accomplishments
• Overall cost reduction and organizational restructuring • Positioned the Company to support accelerated drive by the energy and infrastructure markets to reduce carbon emissions • Implemented new reporting segmentation and changed our GICS code from Energy/Equipment and Services to Industrial/Cons
Slide 11: Environment, Social, and Governance
Advance work on important ESG initiatives, critical to: • Attracting and retaining best-in-class people • Positively impacting the communities in which we live and work • Supporting projects and business objectives of our clients and investors • Ensuring organizational resilience and long-term susta
Slide 12: Operating Segments
OPERATING SEGMENTS UTILITY & POWER INFRASTRUCTURE PROCESS & INDUSTRIAL FACILITIES STORAGE & TERMINAL SOLUTIONS • LNG peak shaving • Power delivery • Grid connectivity • Renewable power • Power generation • Battery storage • Data cabling • Data centers • Midstream natural gas • Renewables/biofuels •
Slide 13: Segment Market Drivers
SEGMENT MARKET DRIVERS UTILITY & POWER INFRASTRUCTURE PROCESS & INDUSTRIAL FACILITIES STORAGE & TERMINAL SOLUTIONS • LNG peak shaving facilities which manage variations in commodity prices and seasonal demand requirements • Projects addressing aging electrical infrastructure • Electrical tie-ins for
Slide 14: Segment Market Drivers
SEGMENT MARKET DRIVERS UTILITY & POWER INFRASTRUCTURE PROCESS & INDUSTRIAL FACILITIES STORAGE & TERMINAL SOLUTIONS • LNG peak shaving facilities which manage variations in commodity prices and seasonal demand requirements • Projects addressing aging electrical infrastructure • Electrical tie-ins for
Slide 15: Segment Market Drivers
SEGMENT MARKET DRIVERS PROCESS & INDUSTRIAL FACILITIES STORAGE & TERMINAL SOLUTIONS • Natural gas, LNG, ammonia, renewable energy, and NGL storage and terminal solutions driven by strong demand across North America, Central America, and the Caribbean • Hydrogen investment expected to expand signific
Slide 16: Strategic Transition and Diversification
Diversification allows for significant growth and provides protection against seasonal and other market cyclicality. Focus on low carbon energy, renewables, and electrical supports our clients’ drive to reduce their carbon footprint. STRATEGIC TRANSITION AND DIVERSIFICATION 70% 30% 40% 60% 2011 CURR
Slide 17: The Role of Hydrogen
THE ROLE OF HYDROGEN SOURCE: U.S. Department of Energy, Hydrogen Strategy – Enabling a Low-Carbon Economy 17
Slide 18: Matrix Service Company and Chart Technologies Small-Scale LH2 Offering
MATRIX SERVICE COMPANY AND CHART TECHNOLOGIES OFFERING A COMPLETE SMALL-SCALE LH2 OFFERING © 2021 Chart Industries, Inc. Confidential and Proprietary H2 Production Technology* Liquefaction Process* Liquefaction Equipment Carbon Capture* Storage Vessels Site/Civil Engineering/BOP Controls/Electrical
Slide 19: Key Performance Long-Term Targets
KEY PERFORMANCE LONG-TERM TARGETS MEASURING OUR SUCCESS Long-term Expected Margin Utility & Power Infrastructure 10% - 12% Process & Industrial Facilities 9% - 11% Storage & Terminal Solutions 10% - 12% Quarterly Consolidated SG&A Run Rate (excluding variable incentives) $18 million Effective Tax Ra
Slide 20: MTRX Is a Good Long-Term Investment
MTRX IS A GOOD LONG-TERM INVESTMENT 20 • Diversified, premier engineering and construction contractor • Brand leader in utility and process infrastructure, process and industrial facilities, and storage and terminal solutions • Known for consistently strong balance sheet and liquidity • Streamlined
Slide 21: Matrix Service Company
MATRIX SERVICE, COMPANY
Slide 22: Appendix
Appendix
Slide 23: Backlog
23 BACKLOG Significant project award opportunities remain across our segments, timing is uncertain. $300 $272 $255 $219 $183 $273 $233 $198 $380 $376 $368 $210 $162 $146 $151 $158 $466 $450 $459 $443 $382 $340 $294 $267 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 FY 2019, Q3 FY 2019, Q4 FY 2020, Q1
Slide 24: Fiscal 2021 YTD Segment Results
FISCAL 2021 | YTD SEGMENT RESULTS ($ in thousands) FY 2021 YTD Utility & Power Infrastructure Process & Industrial Facilities Storage & Terminal Solutions Corporate TOTAL Revenue 112,694$ 97,193$ 140,352$ 350,239$ Gross profit 12,510$ 11,523$ 5,630$ 29,663$ Gross margin 11.1% 11.9% 4.0% 8.5% Restruc
Slide 25: Adjusted EBITDA
ADJUSTED EBITDA ($ in thousands) 25 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net loss (4,591)$ (28,008)$ (7,628)$ (21,857)$ Goodwill and other intangible asset impairment - 38,515 - 38,515 Restructuring costs 5,045 - 4,725 - Interest expense 358 444 733 833 Benefit fro
Slide 26: Adjusted Diluted Earnings Per Share
ADJUSTED DILUTED EARNINGS PER SHARE ($ in thousands, except EPS) December 31 December 31 December 31 December 31 2020 2019 2020 2019 Net loss, as reported (4,591)$ (28,008)$ (7,628)$ (21,857)$ Restructuring costs incurred 5,045 - 4,725 - Goodwill and intangible asset impairments - 38,515 - 38,515 Ta
Slide 27: Adjusted Operating Income – Second Quarter
ADJUSTED OPERATING INCOME – SECOND QUARTER ($ in thousands) 2Q FY2021 Utility & Power Infrastructure Process & Industrial Facilities Storage & Terminal Solutions Corporate TOTAL Operating income (loss) 2,209$ 1,113$ (2,708)$ (7,070)$ (6,456)$ Add: Restructuring costs 812 3,364 641 228 5,045 Adjusted
Slide 28: Adjusted Operating Income – YTD
ADJUSTED OPERATING INCOME – YTD ($ in thousands) FY 2021 YTD Utility & Power Infrastructure Process & Industrial Facilities Storage & Terminal Solutions Corporate TOTAL Operating income (loss) 6,889$ 1,222$ (4,086)$ (13,939)$ (9,914)$ Add: Restructuring costs 823 2,864 654 384 4,725 Adjusted operati