MATRIX SERVICE COMPANY ANNOUNCES FISCAL 2019 FOURTH QUARTER AND FULL YEAR RESULTS; PROVIDES FISCAL 2020 GUIDANCE
Fourth quarter revenue of $398.7 million and full year revenue of $1.417 billion
Fully diluted EPS for the quarter and fiscal year were $0.47 and $1.01, respectively
Project awards of $350.6 million in the fourth quarter and $1.296 billion for the year
Backlog was $1.098 billion as of June 30, 2019
Liquidity increased to $241.9 million, an increase of 76.3% for the year
Fiscal 2020 guidance set at $1.40 billion to $1.55 billion in revenue and $1.10 to $1.40 for fully diluted earnings per share
TULSA, OK – August 28, 2019 – Matrix Service Company (Nasdaq: MTRX) today reported its financial results for the fourth quarter and year ended June 30, 2019 and provides guidance for fiscal 2020.
“The fourth quarter marked a strong closeout to our year, as our previously forecasted outlook for an improved second half of fiscal 2019 came to fruition. Strong operating performance, combined with high maintenance volumes and favorable capital project timing across the Storage Solutions, Oil Gas & Chemical and Industrial segments resulted in the best quarter in the Company's history from a revenue and earnings perspective.” said John Hewitt, President and Chief Executive Officer.
“The current economic environment creates uncertainty in the short-term with regard to the timing of future awards and the continuation of the high maintenance volumes we are experiencing. With that said, we are entering fiscal 2020 with strong momentum in many of the key end-markets we serve, a healthy backlog level and robust bidding activity that will continue to support our business and strategic growth initiatives.”
Fourth Quarter Fiscal 2019 Results
Revenue for the fourth quarter ended June 30, 2019 was $398.7 million compared to $293.1 million in the same quarter a year earlier. On a segment basis, revenue increased $56.6 million, $52.7 million and $1.1 million in the Industrial, Storage Solutions and Electrical Infrastructure segments, respectively. The increase in Industrial revenue is primarily attributable to higher volumes of iron and steel work while the increase in Storage Solutions revenue is primarily a result of increased tank and terminal construction work. These increases in revenue were partially offset by a decrease of $4.8 million in the Oil Gas & Chemical segment due to lower volumes of capital work.
Consolidated gross profit was $43.7 million in the three months ended June 30, 2019 compared to $21.5 million in the three months ended June 30, 2018. Gross margin for the fourth quarter of fiscal 2019 was 11.0% compared to 7.3% in the same period a year earlier. The increase in gross margin in fiscal 2019 is primarily attributable to increased volumes of higher margin capital work and improved project execution. The fiscal 2018 gross margin was negatively impacted by the wind down of lower margin work awarded in a highly competitive environment.
Selling, general and administrative costs were $26.3 million in the fourth quarter of fiscal 2019 compared to $20.6 million in the same period a year earlier. The increase in fiscal 2019 was primarily due to improved operating results which led to higher incentive compensation expense, higher stock compensation expense as well as investments in personnel to support increased revenue.
The following information was filed by Matrix Service Co (MTRX) on Wednesday, August 28, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.