MATRIX SERVICE COMPANY ANNOUNCES FISCAL 2021 FOURTH QUARTER AND FULL YEAR RESULTS
TULSA, OK – September 13, 2021 – Matrix Service Company (Nasdaq: MTRX) today reported its financial results for the fourth quarter and year ended June 30, 2021.
•Fourth quarter revenue increased 18% to $174.9 million compared to $148.3 million in the third quarter; full year revenue of $673.4 million
•$99.1 million of project awards in the quarter resulting in backlog of $462.6 million at June 30, 2021
•Project awards accelerating as we moved into the first quarter of fiscal 2022, with an expected book-to-bill of over 1.0
•Balance sheet is strong with no outstanding debt and cash of $83.9 million at June 30, 2021
“Fourth quarter revenue in all three segments increased over the third quarter, and the pace of awards has begun to accelerate in the new fiscal year,” said the Company’s President and Chief Executive Officer, John R. Hewitt. “This acceleration of awards reflects the growing confidence of our customers and improvement in our end-markets. Small- to mid-size project award activity is increasing across all our segments, and we expect to benefit from increased investment across the clean energy markets including renewable fuels, battery storage, and hydrogen, along with pent up demand in our traditional energy and industrial markets. Importantly, we are well positioned to execute on these opportunities due to our strong financial position.
“In addition, following reductions in overhead achieved over the last 18 months, we have begun a review of our organizational structure, with the support of a third party, to align the organization with the strategic direction of the business and changes in our end markets. We expect this effort will maximize our organizational structure, leading to improved project capture rates and bottom-line results as we move through fiscal 2022.
“In closing, in spite of the challenges during this fiscal year, our employees were able to achieve a total recordable incident rate of 0.28 which represents a record for us and world-class safety performance.”
Revenue in the fourth quarter of fiscal 2021 was $174.9 million, an increase of $26.6 million over third quarter revenue of $148.3 million. Although revenue has increased, the COVID-19 pandemic and the resulting disruption to the energy and industrial markets continued to negatively impact the timing of project awards and our financial results. Although we have made significant reductions to our overhead cost structure, at this current revenue volume, we did not fully leverage overhead costs.
The fourth quarter included additional costs on a large capital project in the Utility and Power Infrastructure segment to achieve critical schedule completion milestones for our client. As a result, the expected outcome on the project resulted in a gross profit reduction of $6.6 million. The project is currently in start-up and commissioning, and while we expect that the forecasted financial outcome of the project will remain positive, it is well below our original expectations.
We settled a long-term dispute with a customer related to a crude terminal that was completed in 2018. As a result of the settlement, we recorded a reduction to gross margin of $2.9 million in the Storage and Terminal Solutions segment and received cash of $8.9 million in fiscal 2022. The settlement allowed us to avoid future legal costs and eliminated any litigation risk.
Based primarily on the factors discussed above, we recognized a net loss in the quarter of $10.7 million and a loss per share of $0.40.
The following information was filed by Matrix Service Co (MTRX) on Monday, September 13, 2021 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.