Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q1 2024 Earnings Presentation
19 slides from Matrix Service's earnings presentation, Nov 9, 2023
Slide 1: FY24 Q1 Earnings Call
FY24 Q1 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 NOVEMBER 14 Matrix virtual Annual Stockholder Meeting NOVEMBER 15 – 16 Sidoti Micro-Cap Virtual Conference DECEMBER Virtual Non-Deal Roadshow hosted by Rose & Company CONTACT Kellie Smythe, Senior Director of Investor Relations ksmythe@matrixse
Slide 4: Safety Moment
SAFETY MOMENT 4
Slide 5: CEO Commentary
CEO COMMENTARY 5
Slide 6: Project Awards and Book-to-Bill (B2B)
PROJECT AWARDS AND BOOK-TO-BILL (B2B) $497M $464M 2.5 B2B 2.3 B2B $41M $319M $309M 1.6 B2B 1.7 B2B $235M $415 $66M 1.1 B2B $115M $26M $361M $132M $98M $217M $43M $23 $105M $60M $62M $60 FY 2023, Q1 FY 2023, Q2 FY 2023, Q3 FY 2023, Q4 FY 2024, Q1 STORAGE AND TERMINAL SOLUTIONS UTILITY AND POWER INFRA
Slide 7: Opportunity Pipeline $5.3B
Low Carbon Energy Mix OPPORTUNITY PIPELINE 71% Traditional Energy and Traditional Chemicals 29% Supports traditional and lower carbon energy mix, including LNG NATURAL GAS LNG and NGLs, Hydrogen and 22.5% 15.8% other renewables. $5.3 B AEROSPACE All three operating segments 2.5% contain individual p
Slide 8: Key Macro Drivers to Our Markets
KEY MACRO DRIVERS TO OUR MARKETS GLOBAL ENERGY SECURITY DEMAND FOR OTHER COMMODITIES • Crude oil • Metals, Mining and Minerals Investment • Refined products • Batteries, infrastructure, etc. • Natural Gas and Gas Liquids DOMESTIC ENERGY SUPPLY ASSURANCE FEDERAL INFRASTRUCTURE INVESTMENT • LNG Storag
Slide 9: September 30, 2023 Backlog: $1.4B, 126% Year-over-Year Increase
SEPTEMBER 30, 2023 BACKLOG | $1.4B, 126% YEAR-OVER-YEAR INCREASE +126% +27% $1.4B $1.1B Number of capital projects, including two large ethane tank projects $595 and the recent addition of an LNG liquefaction and storage terminal. $271M $589M Includes recent award of an LNG peak shaver that will beg
Slide 10: Quarterly Trend | Consolidated
QUARTERLY TREND | CONSOLIDATED (In thousands except % and per share amounts) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 Revenue $ 208,431 $ 193,040 $ 186,895 $ 205,854 $ 197,659 Gross Profit (Loss) 13,008 (1,302) 4,419 14,695 11,859 Gross Margin 6.2% (0.7%) 2.4% 7.1% 6.0% SG&A Expense 16
Slide 11: Quarterly Trend | Storage & Terminal Solutions
QUARTERLY TREND | STORAGE & TERMINAL SOLUTIONS (In thousands except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 Revenue $ 76,933 $ 62,516 $ 52,165 $ 64,079 $ 90,144 Gross Profit (Loss) 7,564 1,648 (810) 2,067 4,952 Gross Margin 9.8% 2.6% (1.6%) 3.2% 5.5% SG&A Expense 4,158 5,450 5,735
Slide 12: Quarterly Trend | Utility & Power Infrastructure
QUARTERLY TREND | UTILITY & POWER INFRASTRUCTURE (In thousands except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 Revenue $ 44,870 $ 50,535 $ 35,024 $ 39,075 $ 32,395 Gross Profit (Loss) 1,714 2,426 2,790 3,770 3,697 Gross Margin 3.8% 4.8% 8.0% 9.6% 11.4% SG&A Expense 1,738 1,787 1,869
Slide 13: Quarterly Trend | Process & Industrial Facilities
QUARTERLY TREND | PROCESS & INDUSTRIAL FACILITIES (In thousands except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY 2023, Q4 FY 2024, Q1 Revenue $ 86,628 $ 80,789 $ 99,706 $ 102,700 $ 75,120 Gross Profit (Loss) 4,330 (5,131) 3,160 8,397 5,078 Gross Margin 5.0% (6.4%) 3.2% 8.2% 6.8% SG&A Expense 4,070 3,68
Slide 14: Fiscal Year 2024, Q1
FISCAL YEAR 2024, Q1 ($ in millions) • As expected, cash decreased in Q1 due to use of working capital resulting from the timing of project cash flows. Improved cash flow is expected through the remainder of FY2024. • In early Q2, the Company reached favorable resolution on a long- standing legal di
Slide 15: Outlook
OUTLOOK Economic and market drivers bring significant tailwinds. KEY LONG-TERM FINANCIAL TARGETS* Strong backlog with recurring revenue streams and multi- < 6% < 6.5% year projects. Net Working SG&A target Capital Growth prospects with strong opportunity pipeline and end > 4.5% > 12% markets with lo
Slide 16: Matrix Service Company
MATRIX SERVICE COMPANY 16
Slide 17: Appendix
APPENDIX 17
Slide 18: Adjusted Net Loss
ADJUSTED NET LOSS (In thousands except per share amounts) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) Restructuring costs 1,287 1,278 316 261 _ Goodwill impairment _ 12,316 _ _ _ Gain on sale of assets _ _ _
Slide 19: Adjusted EBITDA
ADJUSTED EBITDA (In thousands) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) Restructuring costs 1,287 1,278 316 261 _ Goodwill impairment _ 12,316 _ _ _ Gain on sale of assets _ _ _ (2,905) (2,536) Stock-based
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