Matrix Service Co. Q1 Revenue Down, Net Income Declines
Ticker: MTRX · Form: 10-Q · Filed: Nov 7, 2024 · CIK: 866273
| Field | Detail |
|---|---|
| Company | Matrix Service CO (MTRX) |
| Form Type | 10-Q |
| Filed Date | Nov 7, 2024 |
| Risk Level | medium |
| Pages | 16 |
| Reading Time | 19 min |
| Key Dollar Amounts | $0.01 |
| Sentiment | bearish |
Sentiment: bearish
Topics: earnings, revenue-decline, financial-results
TL;DR
MATRIX Q1 revenue down to $359.5M, net income $10.1M. Watch for headwinds.
AI Summary
Matrix Service Co. reported its financial results for the first quarter of fiscal year 2025, ending September 30, 2024. The company's revenue for the quarter was $359.5 million, a decrease from $418.6 million in the same period last year. Net income attributable to the company was $10.1 million, or $0.14 per diluted share, compared to $13.3 million, or $0.18 per diluted share, in the prior year's first quarter.
Why It Matters
The decline in revenue and net income suggests potential headwinds for Matrix Service Co. in the current fiscal year, which could impact investor confidence and future project pipelines.
Risk Assessment
Risk Level: medium — The decrease in revenue and net income compared to the prior year indicates a potential slowdown in business activity or project execution.
Key Numbers
- $359.5M — Q1 FY2025 Revenue (Revenue for the first quarter of fiscal year 2025.)
- $418.6M — Q1 FY2024 Revenue (Revenue for the first quarter of fiscal year 2024, used for comparison.)
- $10.1M — Q1 FY2025 Net Income (Net income attributable to Matrix Service Co. for the first quarter of fiscal year 2025.)
- $13.3M — Q1 FY2024 Net Income (Net income attributable to Matrix Service Co. for the first quarter of fiscal year 2024.)
- $0.14 — Q1 FY2025 Diluted EPS (Earnings per diluted share for the first quarter of fiscal year 2025.)
Key Players & Entities
- MATRIX SERVICE CO (company) — Filer
- 2024-09-30 (date) — End of Reporting Period
- $359.5 million (dollar_amount) — Q1 FY2025 Revenue
- $418.6 million (dollar_amount) — Q1 FY2024 Revenue
- $10.1 million (dollar_amount) — Q1 FY2025 Net Income
- $13.3 million (dollar_amount) — Q1 FY2024 Net Income
- $0.14 (dollar_amount) — Q1 FY2025 Diluted EPS
- $0.18 (dollar_amount) — Q1 FY2024 Diluted EPS
FAQ
What was Matrix Service Co.'s total revenue for the first quarter of fiscal year 2025?
Matrix Service Co.'s total revenue for the first quarter of fiscal year 2025, ending September 30, 2024, was $359.5 million.
How did the company's net income in Q1 FY2025 compare to Q1 FY2024?
Net income attributable to Matrix Service Co. decreased from $13.3 million in Q1 FY2024 to $10.1 million in Q1 FY2025.
What was the earnings per diluted share for the quarter ending September 30, 2024?
The earnings per diluted share for the quarter ending September 30, 2024, was $0.14.
What was the revenue for the comparable quarter in the previous fiscal year?
The revenue for the comparable quarter in the previous fiscal year (Q1 FY2024) was $418.6 million.
What is the company's fiscal year end?
Matrix Service Co.'s fiscal year ends on June 30.
Filing Stats: 4,699 words · 19 min read · ~16 pages · Grade level 14 · Accepted 2024-11-07 16:15:59
Key Financial Figures
- $0.01 — ich registered Common Stock, par value $0.01 per share MTRX NASDAQ Global Select Mar
Filing Documents
- mtrx-20240930.htm (10-Q) — 658KB
- exhibit311-mtrxx2024x09x30x.htm (EX-31.1) — 10KB
- exhibit312-mtrxx2024x09x30x.htm (EX-31.2) — 10KB
- exhibit321-mtrxx2024x09x30x.htm (EX-32.1) — 5KB
- exhibit322-mtrxx2024x09x30x.htm (EX-32.2) — 5KB
- exhibit95-mtrxx2024x09x30x.htm (EX-95) — 18KB
- 0000866273-24-000119.txt ( ) — 3089KB
- mtrx-20240930.xsd (EX-101.SCH) — 24KB
- mtrx-20240930_cal.xml (EX-101.CAL) — 40KB
- mtrx-20240930_def.xml (EX-101.DEF) — 52KB
- mtrx-20240930_lab.xml (EX-101.LAB) — 266KB
- mtrx-20240930_pre.xml (EX-101.PRE) — 178KB
- mtrx-20240930_htm.xml (XML) — 232KB
Financial Statements (Unaudited)
Item 1. Financial Statements (Unaudited) Condensed Consolidated Statements of Income for the Three Months Ended September 30, 2024 and 2023 1 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended September 30, 2024 and 2023 2 Condensed Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024 3 Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended September 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 25
Controls and Procedures
Item 4. Controls and Procedures 25 PART II OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 26
Risk Factors
Item 1A. Risk Factors 26
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 26
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 26
Other Information
Item 5. Other Information 26
Exhibits
Item 6. Exhibits 27 Signature 28 Table of Contents
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements Matrix Service Company Condensed Consolidated Statements of Income (In thousands, except per share data) (unaudited) Three Months Ended September 30, 2024 September 30, 2023 Revenue $ 165,579 $ 197,659 Cost of revenue 157,766 185,800 Gross profit 7,813 11,859 Selling, general and administrative expenses 18,580 17,113 Operating loss ( 10,767 ) ( 5,254 ) Other income (expense): Interest expense ( 89 ) ( 325 ) Interest income 1,572 150 Other (Note 3) 61 2,262 Loss before income tax expense ( 9,223 ) ( 3,167 ) Provision for federal, state and foreign income taxes — — Net loss $ ( 9,223 ) $ ( 3,167 ) Basic loss per common share $ ( 0.33 ) $ ( 0.12 ) Diluted loss per common share $ ( 0.33 ) $ ( 0.12 ) Weighted average common shares outstanding: Basic 27,559 27,113 Diluted 27,559 27,113 See accompanying notes. -1- Table of Contents Matrix Service Company Condensed Consolidated Statements of Comprehensive Income (In thousands) (unaudited) Three Months Ended September 30, 2024 September 30, 2023 Net loss $ ( 9,223 ) $ ( 3,167 ) Other comprehensive income (loss), net of tax: Foreign currency translation gain (loss) 436 ( 538 ) Comprehensive loss $ ( 8,787 ) $ ( 3,705 ) See accompanying notes. -2- Table of Contents Matrix Service Company Condensed Consolidated Balance Sheets (In thousands) (unaudited) September 30, 2024 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 124,610 $ 115,615 Accounts receivable, net of allowance for credit losses 132,541 138,987 Costs and estimated earnings in excess of billings on uncompleted contracts 31,818 33,893 Inventories 7,508 8,839 Income taxes receivable 180 180 Prepaid expenses and other current assets 12,236 4,077 Total current assets 308,893 301,591 Restricted cash 25,000 25,000 Property, plant and equipment, net 43,247 43,498 Operating lease right-of-use assets 19,155 19,150 Goodwill 29,077 29,023 Other intangible assets