Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q1 2023 Earnings Presentation
26 slides from Matrix Service's earnings presentation, Nov 8, 2022
Slide 1: Fiscal 2023 First Quarter Results
FISCAL 2023 | FIRST QUARTER RESULTS
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: Safety Moment
SAFETY MOMENT MATRIX SERVICE
Slide 4: We are all accountable for personal safety
Personal Safety Accountability - ACT • What is ACT? ─ Accountability – Commitment, expectations, tap roots Leadership ─ Communication - Incident trends, JSA’s, Stop Work & ─ Training – Orientations, Supervisor, Skills, S.T.A.R.T. Culture • What is my personal commitment to safety? • Personal Safety
Slide 5: About Matrix
ABOUT MATRIX
Slide 6: 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 7: Our core values are the foundation of our success
OUR CORE VALUES ARE THE FOUNDATION OF OUR SUCCESS 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.
Slide 8: Strategy and Opportunity Pipeline
STRATEGY AND OPPORTUNITY PIPELINE
Slide 9: Strategy
STRATEGY Strengthen the Core Expand in existing end markets Grow into new end markets Crude tanks and terminals LNG and NGL storage terminals Renewable energy infrastructure such Refining Midstream gas processing as Hydrogen and biofuels Thermal vacuum chambers Chemical and Petrochemical Electrical
Slide 10: Positioning and Execution
POSITIONING AND EXECUTION Prepared to Execute and Deliver Results • Organization has streamlined its cost structure and optimized our business processes to make sure we are positioned to execute on the opportunities we see ahead of us • Internal consolidation underway to further enhance Shared Servi
Slide 11: Capital Projects Opportunity Pipeline
CAPITAL PROJECTS OPPORTUNITY PIPELINE KEY DRIVERS GLOBAL ENERGY SECURITY Pipeline supports transition to cleaner fuels, • Natural Gas and Gas Liquids especially in LNG and NGLs, Mid-Stream Gas, and • Refined products • Crude oil Hydrogen and other renewables DOMESTIC ENERGY SUPPLY AND DISTRIBUTION A
Slide 12: Core Expertise and Services
CORE EXPERTISE AND SERVICES BUILDING LONG-TERM CLIENT AND INDUSTRY RELATIONSHIPS EXPERTISE SERVICES • Leading storage solutions contractor • FEL and FEED • Long-standing expertise in cryogenics • Turnkey EPC Solutions • Leading expertise in specialty storage vessels and • Engineering and Detail Desi
Slide 13: Transitioning to a Low Carbon Economy
TRANSITIONING TO A LOW CARBON ECONOMY Enterprise-wide, our skills and expertise are LNG, 39% transferable as the world and our clients transition to a low carbon economy AEROSPACE, 2% 82% OF OUR PROJECT NATURAL GAS, 12% TRADITIONAL OPPORTUNITY PIPELINE ENERGY FUELS, AT SEPTEMBER 30, 2022 The call to
Slide 14: Highlights for the Quarter
HIGHLIGHTS FOR THE QUARTER • Continued Momentum in Project Awards Project Awards ($ millions) $267 • First quarter Fiscal 2023 Book to Bill was 1.1 on $235 $192 $196 $108 $180 project awards of $235 million $138 $48 $62 $132 $112 $52 $103 $99 • Backlog of $616 million is the highest in over $31 $37
Slide 15: Financial Update
FINANCIAL UPDATE MATRIX SERVICE
Slide 16: Quarterly Trend | Consolidated
QUARTERLY TREND | CONSOLIDATED (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 Revenue $ 168,093 $ 161,965 $177,003 $200,719 $208,431 Gross Profit (Loss) (3,508) 3,207 (1,763) 858 13,008 Gross Margin (2.1%) 2.0% (1.0%) 0.4% 6.2% SG&A Expense 16,629 15,922 17,041 18,098
Slide 17: Cash Bridge | FY 2023, Q1
CASH BRIDGE | FY 2023, Q1 ($ in millions) Due to rising revenue volumes, heavy investment in working capital was the primary driver of the cash decrease during Q1. Based on forecasted mix of work, including increasing capital projects, we expect liquidity to improve through the remainder of the fisc
Slide 18: Why MTRX Is a Good Long-Term Investment
WHY MTRX IS A GOOD LONG-TERM INVESTMENT Economic and market drivers bring significant tailwinds KEY FINANCIAL TARGETS* Growth prospects with strong opportunity pipeline end markets < 6% < 6% Net Working with long runway Capital SG&A target Brand strength reputation with excellent customer relationsh
Slide 19: Appendix
APPENDIX MATRIX SERVICE COMPANY
Slide 20: Quarterly Trend | Utility & Power Infrastructure
QUARTERLY TREND | UTILITY & POWER INFRASTRUCTURE (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 Revenue $ 57,204 $ 54,752 $ 59,341 $ 48,795 $ 44,870 Gross Profit (Loss) (6,107) (491) (492) (1,497) 1,714 Gross Margin (10.7%) (0.9%) (0.8%) (3.1%) 3.8% SG&A Expense 3,050
Slide 21: Quarterly Trend | Process & Industrial Facilities
QUARTERLY TREND | PROCESS & INDUSTRIAL FACILITIES (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 Revenue $ 43,905 $ 50,316 $ 68,971 $ 91,656 $ 86,628 Gross Profit (Loss) 2,871 4,235 (441) 2,607 4,330 Gross Margin 6.5% 8.4% (0.6%) 2.8% 5.0% SG&A Expense 2,762 2,792 3,19
Slide 22: Quarterly Trend | Storage & Terminal Solutions
QUARTERLY TREND | STORAGE & TERMINAL SOLUTIONS (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 Revenue $ 66,984 $ 56,887 $ 48,691 $ 60,268 $ 76,933 Gross Profit (Loss) 413 (172) (458) 478 7,564 Gross Margin 0.6% (0.3%) (0.9%) 0.8% 9.8% SG&A Expense 4,506 4,280 4,063 4,4
Slide 23: Consolidated – Quarter and Year Comparison to Prior Year
CONSOLIDATED – Quarter and Year Comparison to Prior Year Q1 FY 2023 Q4 FY2022 Q1 FY 2022 Revenue $208,431 $200,719 $168,093 Gross Profit (Loss) 13,008 858 (3,508) Gross Margin (Loss) % 6.2% 0.4% (2.1%) SG&A 16,811 18,098 16,629 Restructuring Costs 1,287 924 605 Operating Loss (5,090) (18,164) (20,74
Slide 24: Adjusted EBITDA
ADJUSTED EBITDA THREE MONTHS ENDED June 30, September 30, 2022 September 30, 2021 2022 Net Income (Loss), as reported $ (6,512) $ 13,456 $ (17,538) Gain on sale of facilities _ (32,392) _ Restructuring Costs 1,287 924 605 Stock-Based Compensation 2,055 2,054 1,869 Interest Expense 372 246 1,999 Prov
Slide 25: Reconciliation of Certain Non-GAAP Measures
RECONCILIATION OF CERTAIN NON-GAAP MEASURES THREE MONTHS ENDED September 30, June 30, September 30, 2022 2022 2021 Net Income (Loss), as reported $ (6,512) $ 13,456 $ (17,538) Restructuring Costs 1,287 924 605 Gain on sale of facilities _ (32,392) _ Accelerated amortization of deferred debt amendmen
Slide 26: Reconciliation of Certain Non-GAAP Measures
RECONCILIATION OF CERTAIN NON-GAAP MEASURES THREE MONTHS ENDED SEPTEMBER 30, 2022 Process and Storage and Utility and Power Industrial Terminal Corporate Total Infrastructure Facilities Solutions Total Operating Income (Loss) $ (61) $ (55) $ 2,884 $ (7,858) $ (5,090) Restructuring Costs 37 315 522 4
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