Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q3 2023 Earnings Presentation
20 slides from Matrix Service's earnings presentation, May 9, 2023
Slide 1: FY25 QS
FY25 QS
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 FIVE CONTRACTOR SAFETY ACHIEVEMENT AWARDS EL SEGUNDO ANACORTES PUGET SOUND LOS ANGELES JOLIET 3
Slide 4: CEO Commentary
CEO COMMENTARY 4
Slide 5: Highlights for the Quarter
HIGHLIGHTS FOR THE QUARTER Project Awards ($ millions) Continued Momentum in Project Awards 1 $319 $309 • Third quarter book-to-bill of 1.7, seventh consecutive $267 $235 $66 $115 quarter with a book-to-bill 1.0 or higher $108 $192 $180 $195 $138 $48 $62 $132 $52 $105 • Strong awards in Process & In
Slide 6: Opportunity Pipeline $5.6B
OPPORTUNITY PIPELINE Supports traditional and lower carbon energy mix, including LNG and NGLs, Hydrogen and LNG 24% NATURAL GAS 13% other renewables. $5.6 B AEROSPACE 2% Enterprise-wide, our skills and expertise are transferable as the world and our In Opportunities, HYDROGEN & clients transition to
Slide 7: 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 8: Market Outlook: U.S. Energy Production by Type
MARKET OUTLOOK 1st AMERICAN SHALE 3RD GREAT AMERICAN ENERGY REVOLUTION REVOLUTION ENERGY REVOLUTION • The Inflation Reduction Act (IRA) Energy and Climate provision provides $391 Billion, although analysts are forecasting the IRA to 50000 U.S. ENERGY PRODUCTION BY TYPE, KBOED cost around $1.2 Trilli
Slide 9: Quarterly Trend | Consolidated
QUARTERLY TREND | CONSOLIDATED (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 FY2023, Q2 FY2023, Q3 Revenue $ 168,093 $ 161,965 $177,003 $200,719 $208,431 $193,040 $186,895 Gross Profit (Loss) (3,508) 3,207 (1,763) 858 13,008 (1,302) 4,419 Gross Margin (2.1%) 2.0% (1.0
Slide 10: Reconciliation of Certain Non-GAAP Measures
RECONCILIATION OF CERTAIN NON-GAAP MEASURES THREE MONTHS ENDED NINE MONTHS ENDED March 31, March 31, 2023 March 31, 2022 March 31, 2023 2022 Net Income (Loss), as reported $ (12,686) $ (34,899) $ (52,025) $ (77,356) Goodwill Impairment _ 18,312 12,316 18,312 Restructuring Costs 316 (1,578) 2,881 (27
Slide 11: Quarterly Trend | Utility & Power Infrastructure
QUARTERLY TREND | UTILITY & POWER INFRASTRUCTURE (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 FY2023, Q2 FY2023, Q3 Revenue $ 57,204 $ 54,752 $ 59,341 $ 48,795 $ 44,870 $ 50,535 $35,024 Gross Profit (Loss) (6,107) (491) (492) (1,497) 1,714 2,426 2,790 Gross Margin (1
Slide 12: Quarterly Trend | Process & Industrial Facilities
QUARTERLY TREND | PROCESS & INDUSTRIAL FACILITIES (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 FY2023, Q2 FY2023, Q3 Revenue $ 43,905 $ 50,316 $ 68,971 $ 91,656 $ 86,628 $80,789 $99,706 Gross Profit (Loss) 2,871 4,235 (441) 2,607 4,330 (5,131) 3,160 Gross Margin 6.5%
Slide 13: Quarterly Trend | Storage & Terminal Solutions
QUARTERLY TREND | STORAGE & TERMINAL SOLUTIONS (In millions except %) FY2022, Q1 FY2022, Q2 FY2022, Q3 FY2022, Q4 FY2023, Q1 FY2023, Q2 FY2023, Q3 Revenue $ 66,984 $ 56,897 $ 48,691 $ 60,268 $ 76,933 $ 62,516 $52,165 Gross Profit (Loss) 413 (172) (458) 478 7,564 1,648 (810) Gross Margin 0.6% (0.3%)
Slide 14: Cash Bridge | FY 2023, Q3
CASH BRIDGE | FY 2023, Q3 ($ in millions) Cash improvement in FY 2023, Q3 was driven by a decrease in working capital investment and receipt of our income tax refund. We continue to proactively manage our balance sheet and liquidity. 14
Slide 15: In Summary
IN SUMMARY Matrix is making progress toward normalized levels of operations, with many parts of the Company on plan and: • Will have worked through the lower margin • Have strategically focused the Company’s projects that were awarded during the pandemic business development approach and services pe
Slide 16: Matrix Service Company
MATRIX SERVICE COMPANY 16
Slide 17: Appendix
APPENDIX 17
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA THREE MONTHS ENDED NINE MONTHS ENDED March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Net Income (Loss), as reported $ (12,686) $ (34,899) $ (52,025) $ (77,356) Goodwill Impairment _ 18,312 12,316 18,312 Restructuring Costs 316 (1,578) 2,881 (278) Stock-Based Compensation
Slide 19: Reconciliation of Certain Non-GAAP Measures
RECONCILIATION OF CERTAIN NON-GAAP MEASURES THREE MONTHS ENDED MARCH 31, 2023 Utility and Process and Storage and Power Industrial Terminal Corporate Total Infrastructure Facilities Solutions Total Operating Income (Loss) $ 921 $ (502) $ (6,624) $ (6,554) $ (32,441) Restructuring Costs _ 106 79 131
Slide 20: Reconciliation of Certain Non-GAAP Measures
RECONCILIATION OF CERTAIN NON-GAAP MEASURES NINE MONTHS ENDED MARCH 31, 2023 Utility and Process and Storage and Power Industrial Terminal Corporate Total Infrastructure Facilities Solutions Total Operating Income (Loss) $ 1,498 $ (22,068) $ (7,923) $ (21,797) $ (50,290) Goodwill Impairment _ 12,316
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