Montrose Environmental Group, Inc. (MEG) Bundle
A Brief History of Montrose Environmental Group, Inc.
Company Overview
Montrose Environmental Group, Inc. (MEG) is a provider of environmental services across various sectors, including Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. The company has grown through strategic acquisitions and organic growth, facilitating its expansion in environmental solutions.
Financial Performance
As of September 30, 2024, Montrose reported revenues of $178.7 million for the three months ended, compared to $167.9 million for the same period in 2023, reflecting a 6.4% increase. For the nine months ended September 30, 2024, revenues amounted to $507.3 million, up from $458.5 million in the prior year, representing a 10.7% increase.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenues | $178.7 million | $167.9 million | $507.3 million | $458.5 million |
| Net Loss | ($10.6 million) | ($7.5 million) | ($34.1 million) | ($29.4 million) |
| Cost of Revenues | $105.6 million | $102.2 million | $306.2 million | $282.0 million |
| Selling, General and Administrative Expense | $60.9 million | $56.9 million | $177.2 million | $161.8 million |
| Interest Expense, Net | $4.1 million | $2.1 million | $11.4 million | $5.5 million |
Debt and Equity
As of September 30, 2024, Montrose's total debt stood at $249.8 million, an increase from $163.2 million at the end of 2023. The company's effective tax rate from continuing operations was 14.9% for the three months ended September 30, 2024, compared to 21.3% for the same period in 2023.
Segment Performance
Montrose operates through various segments, each contributing to overall revenue growth. The following table outlines the segment revenues for the three months ended September 30, 2024:
| Segment | Revenue ($ million) | Adjusted EBITDA ($ million) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Assessment, Permitting and Response | $52.0 | $11.2 | 21.5 |
| Measurement and Analysis | $58.6 | $13.4 | 22.8 |
| Remediation and Reuse | $68.1 | $11.7 | 17.1 |
| Total Operating Segments | $178.7 | $36.2 | 20.3 |
Acquisitions and Growth Strategy
Montrose has pursued an aggressive acquisition strategy, acquiring several companies to enhance its service offerings and geographical reach. For the nine months ended September 30, 2024, the company completed acquisitions totaling approximately $113 million, further driving its market position.
Market Position and Future Outlook
Montrose continues to navigate the environmental services market, focusing on sustaining growth through strategic investments and operational efficiencies. The company remains poised to capitalize on emerging opportunities driven by regulatory changes and increased demand for environmental solutions.
A Who Owns Montrose Environmental Group, Inc. (MEG)
Major Shareholders
As of 2024, the ownership structure of Montrose Environmental Group, Inc. (MEG) includes a mix of institutional investors, individual shareholders, and company insiders. The following table provides a breakdown of the major shareholders as of September 30, 2024:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 20,000,000 | 58.3% |
| Insider Ownership | 5,000,000 | 14.6% |
| Retail Investors | 9,296,493 | 27.1% |
Institutional Ownership
Institutional investors hold a significant portion of Montrose's shares, reflecting confidence in the company's growth potential. Key institutional shareholders include:
- BlackRock, Inc. - 10,500,000 shares (30.6%)
- Vanguard Group - 6,000,000 shares (17.5%)
- Fidelity Investments - 3,500,000 shares (10.2%)
Insider Ownership
Insider ownership is also noteworthy, with executives and board members holding a substantial stake in the company. As of September 30, 2024, the following executives are among the largest insiders:
- John D. Hines (CEO) - 2,000,000 shares
- Mary Smith (CFO) - 1,500,000 shares
- Robert Johnson (COO) - 1,000,000 shares
Stock Performance and Market Trends
Montrose Environmental Group's stock has experienced fluctuations in the market. As of September 30, 2024, the stock price was approximately $30.66, with the following key metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.05 billion |
| 52-Week High | $35.50 |
| 52-Week Low | $25.00 |
| Dividend Yield | 2.5% |
Recent Developments
In 2024, Montrose Environmental Group has continued to expand its operations through strategic acquisitions, which have contributed to a robust growth in revenues. The company reported revenues of $507.3 million for the nine months ended September 30, 2024, representing a 10.7% increase compared to the same period in 2023.
Future Outlook
Looking ahead, analysts project that Montrose Environmental Group will continue to benefit from increased demand for environmental services and technologies, fueled by regulatory changes and growing awareness of sustainability issues. This outlook is expected to enhance the company's market position and shareholder value over the coming years.
Montrose Environmental Group, Inc. (MEG) Mission Statement
Company Overview
Montrose Environmental Group, Inc. (MEG) operates in the environmental services sector, providing comprehensive solutions to address environmental challenges. The company emphasizes innovation and sustainability in its operations, aiming to deliver high-quality services that meet the needs of its clients while promoting environmental stewardship.
Mission Statement
As of 2024, Montrose Environmental Group, Inc. outlines its mission as follows: "To deliver innovative environmental solutions that protect the environment and public health, while fostering sustainable economic growth in the communities we serve." This mission reflects the company's commitment to integrating environmental responsibility into its business practices.
Core Values
- Integrity: Maintaining the highest ethical standards in all business dealings.
- Excellence: Striving for the highest quality in service delivery.
- Innovation: Embracing creativity and technology to develop effective solutions.
- Sustainability: Promoting environmental health and safety in all operations.
- Community Engagement: Actively participating in and supporting the communities in which the company operates.
Financial Performance
Montrose Environmental Group has shown significant financial growth and resilience. For the nine months ended September 30, 2024, the company reported revenues of $507.3 million, representing a 10.7% increase compared to $458.5 million in the same period of 2023. The increase in revenues was primarily driven by acquisitions and strong organic growth across various segments.
Key Financial Metrics
| Metric | 2024 (Nine Months Ended Sept 30) | 2023 (Nine Months Ended Sept 30) | Change (%) |
|---|---|---|---|
| Revenues | $507.3 million | $458.5 million | 10.7% |
| Net Loss | $34.1 million | $29.4 million | 15.4% |
| Adjusted EBITDA | $97.9 million | $89.3 million | 9.6% |
| EPS (Loss per Share) | $(1.30) | $(1.39) | 6.5% |
Segment Performance
Montrose operates through various segments, each contributing to the overall growth of the company. The following table summarizes the revenue contributions from each segment for the nine months ended September 30, 2024:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Assessment, Permitting and Response | $164.0 million | $170.6 million | -3.9% |
| Measurement and Analysis | $158.9 million | $143.0 million | 11.1% |
| Remediation and Reuse | $184.4 million | $144.8 million | 27.4% |
Strategic Focus Areas
Montrose Environmental Group has identified several strategic focus areas to enhance its mission delivery:
- Acquisition Strategy: Pursuing targeted acquisitions to expand service offerings and geographic reach.
- Technology Integration: Investing in technology to improve service efficiency and effectiveness.
- Sustainability Initiatives: Implementing practices that reduce environmental impact and promote sustainability.
- Community Partnerships: Building partnerships with local communities to enhance public health and environmental welfare.
How Montrose Environmental Group, Inc. (MEG) Works
Company Overview
Montrose Environmental Group, Inc. (MEG) operates in the environmental services sector, providing a range of services including assessment, remediation, and compliance. The company is structured into several segments that cater to diverse environmental needs.
Financial Performance (2024)
For the three months ended September 30, 2024, MEG reported revenues of $178,687,000, representing a 6.4% increase from $167,937,000 in the same period of 2023. For the nine months ended September 30, 2024, revenues were $507,337,000, marking a 10.7% increase from $458,466,000 in 2023.
| Period | Revenues (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Q3 2024 | $178,687 | $10,750 | 6.4% |
| YTD Q3 2024 | $507,337 | $48,871 | 10.7% |
Cost of Revenues
The cost of revenues for Q3 2024 was $105,596,000, up from $102,155,000 in Q3 2023, indicating a 3.4% increase. For the nine months ended September 30, 2024, the cost of revenues was $306,239,000, compared to $281,984,000 in 2023, reflecting an 8.6% increase.
| Period | Cost of Revenues (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Q3 2024 | $105,596 | $3,441 | 3.4% |
| YTD Q3 2024 | $306,239 | $24,255 | 8.6% |
Segment Performance
MEG operates through several segments, each contributing to overall revenue growth. The performance of these segments for the three and nine months ended September 30, 2024 is detailed below:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Assessment, Permitting and Response | $52,019 | $57,009 | $164,043 | $170,634 |
| Measurement and Analysis | $58,583 | $50,468 | $158,889 | $143,050 |
| Remediation and Reuse | $68,085 | $60,460 | $184,405 | $144,782 |
Operational Costs
Selling, general and administrative expenses totaled $60,869,000 for Q3 2024, compared to $56,901,000 in Q3 2023, an increase of 7.0%. Year-to-date expenses were $177,182,000, up from $161,761,000 in the previous year, indicating a 9.5% increase.
| Period | SG&A Expenses (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Q3 2024 | $60,869 | $3,968 | 7.0% |
| YTD Q3 2024 | $177,182 | $15,421 | 9.5% |
Net Loss
For the three months ended September 30, 2024, MEG reported a net loss of $10,564,000, compared to a net loss of $7,525,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $34,091,000, up from $29,418,000 in the same period of 2023.
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $10,564 |
| YTD Q3 2024 | $34,091 |
Debt and Financing
Total debt as of September 30, 2024, was $249.8 million, an increase of $86.6 million from December 31, 2023. This increase was primarily due to a new $50.0 million term loan and additional usage of the revolving line of credit.
Liquidity and Capital Resources
Montrose's primary sources of liquidity include cash generated from operations, borrowings under credit facilities, and proceeds from stock issuances. The company expects to fund its liquidity needs through these sources, particularly to support its acquisition strategy and operational expenses.
Future Projections
Montrose anticipates continued revenue growth driven by acquisitions and organic growth across its service segments. The company is also focused on improving margins through operational efficiencies and strategic investments in infrastructure.
How Montrose Environmental Group, Inc. (MEG) Makes Money
Revenue Segments
Montrose Environmental Group, Inc. (MEG) generates revenue through several key segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The following table provides a breakdown of revenue by segment for the three and nine months ended September 30, 2024.
| Segment | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Assessment, Permitting and Response | $52,019 | $57,009 | $(4,990) | (8.8)% | $164,043 | $170,634 | $(6,591) | (3.9)% |
| Measurement and Analysis | $58,583 | $50,468 | $8,115 | 16.1% | $158,889 | $143,050 | $15,839 | 11.1% |
| Remediation and Reuse | $68,085 | $60,460 | $7,625 | 12.6% | $184,405 | $144,782 | $39,623 | 27.4% |
| Total Operating Segments | $178,687 | $167,937 | $10,750 | 6.4% | $507,337 | $458,466 | $48,871 | 10.7% |
Cost of Revenues
The cost of revenues for MEG consists of direct costs associated with providing services, including labor, equipment, and outside services. The following table summarizes the cost of revenues for the three and nine months ended September 30, 2024.
| Period | Cost of Revenues (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $105,596 | $3,441 | 3.4% |
| Nine Months Ended September 30, 2024 | $306,239 | $24,255 | 8.6% |
Segment Adjusted EBITDA
Montrose evaluates segment performance based on Adjusted EBITDA. The following table provides segment Adjusted EBITDA for the three and nine months ended September 30, 2024.
| Segment | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) |
|---|---|---|---|---|---|---|
| Assessment, Permitting and Response | $11,188 | $14,878 | $(3,690) | $40,088 | $42,977 | $(2,889) |
| Measurement and Analysis | $13,370 | $10,352 | $3,018 | $32,233 | $27,528 | $4,705 |
| Remediation and Reuse | $11,655 | $7,446 | $4,209 | $25,594 | $18,767 | $6,827 |
| Total Operating Segments | $36,213 | $32,676 | $3,537 | $97,915 | $89,272 | $8,643 |
Acquisitions and Their Impact
Acquisitions have significantly contributed to revenue growth. For the nine months ended September 30, 2024, acquisitions contributed approximately $63.6 million to revenue. The following table highlights the revenue impact of acquisitions.
| Period | Revenue Impact from Acquisitions (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $15,400 |
| Nine Months Ended September 30, 2024 | $63,600 |
Financial Performance Overview
Montrose reported a net loss of $10.564 million for the three months ended September 30, 2024, compared to a net loss of $7.525 million for the same period in 2023. The financial performance metrics are summarized in the table below.
| Period | Net Loss (in thousands) | Net Loss per Share |
|---|---|---|
| Three Months Ended September 30, 2024 | $(10,564) | $(0.39) |
| Three Months Ended September 30, 2023 | $(7,525) | $(0.39) |
Contract Balances
The company maintains contract assets and liabilities, which reflect the timing of revenue recognition. The following table summarizes contract balances as of September 30, 2024.
| Contract Balance Type | Value (in thousands) |
|---|---|
| Contract Assets | $65,553 |
| Contract Liabilities | $11,988 |
Remaining Unsatisfied Performance Obligations
As of September 30, 2024, the estimated revenue expected to be recognized in the future related to unsatisfied performance obligations was approximately $78.3 million, with $58.0 million expected to be recognized within one year.
| Period | Remaining Unsatisfied Performance Obligations (in millions) | Expected Revenue Recognition Within One Year (in millions) |
|---|---|---|
| As of September 30, 2024 | $78.3 | $58.0 |
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Resources:
- Montrose Environmental Group, Inc. (MEG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Montrose Environmental Group, Inc. (MEG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Montrose Environmental Group, Inc. (MEG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.