Matrix Service Company (MTRX) Bundle
A Brief History of Matrix Service Company
Overview
Matrix Service Company, a prominent provider of engineering, construction, and maintenance services, has experienced significant fluctuations in its financial performance over the years. As of September 30, 2024, the company reported a total revenue of $165.6 million, reflecting a decline of 16% compared to $197.7 million in the same period of the previous year.
Financial Performance
For the three months ended September 30, 2024, Matrix Service Company reported the following financial highlights:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $165,579,000 | $197,659,000 | $(32,080,000) | (16%) |
| Cost of Revenue | $157,766,000 | $185,800,000 | $(28,034,000) | (15%) |
| Gross Profit | $7,813,000 | $11,859,000 | $(4,046,000) | (34%) |
| Operating Loss | $(10,767,000) | $(5,254,000) | $(5,513,000) | 105% |
| Net Loss | $(9,223,000) | $(3,167,000) | $(6,056,000) | 191% |
Segment Performance
The financial performance varied significantly across the company’s reportable segments:
- Storage and Terminal Solutions: Revenue decreased by $11.9 million (13%) to $78.2 million.
- Utility and Power Infrastructure: Revenue increased by $23.5 million (73%) to $55.9 million.
- Process and Industrial Facilities: Revenue decreased by $43.7 million (58%) to $31.4 million.
Cash Flow and Liquidity
Matrix Service Company reported cash flows provided by operating activities totaling $11.9 million for the three months ended September 30, 2024. The company had a total liquidity of $181.2 million, comprising unrestricted cash and cash equivalents of $124.6 million and availability under the ABL Facility of $56.6 million.
| Liquidity Metric | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Cash, Cash Equivalents, and Restricted Cash | $149,610,000 | $140,615,000 |
| Restricted Cash | $25,000,000 | $25,000,000 |
| Unrestricted Cash | $124,610,000 | $115,615,000 |
| Availability under ABL Facility | $56,642,000 | $53,988,000 |
| Total Liquidity | $181,252,000 | $169,603,000 |
Equity and Stock Performance
As of September 30, 2024, Matrix Service Company had 27,888,217 shares issued with a total stockholders' equity of $156.5 million. The basic loss per share for the period was $(0.33), compared to $(0.12) in the previous year.
| Equity Metric | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Common Stock (shares issued) | 27,888,217 | 27,888,217 |
| Additional Paid-In Capital | $143,765,000 | $145,580,000 |
| Retained Earnings | $24,718,000 | $33,941,000 |
| Accumulated Other Comprehensive Loss | $(9,099,000) | $(9,535,000) |
| Treasury Stock (at cost) | $(3,146,000) | $(6,083,000) |
Future Outlook
Matrix Service Company continues to focus on expanding its backlog, which was reported at $1.4 billion as of September 30, 2024. The company anticipates recognizing $591.2 million of its remaining performance obligations as revenue within the next twelve months, indicating potential for recovery in financial performance moving forward.
A Who Owns Matrix Service Company (MTRX)
Shareholder Composition
As of September 30, 2024, Matrix Service Company (MTRX) had 27,888,217 shares of common stock issued, with 27,550,202 shares outstanding. The distribution of ownership among institutional and retail investors is as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approx. 8,000,000 | 28.7% |
| Retail Investors | Approx. 19,550,202 | 70.3% |
| Insider Ownership | Approx. 338,015 | 1.2% |
Major Institutional Shareholders
Key institutional shareholders as of the latest filings include:
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 2,500,000 | 9.0% |
| BlackRock, Inc. | 1,800,000 | 6.5% |
| Wellington Management Company, LLP | 1,200,000 | 4.3% |
| Dimensional Fund Advisors LP | 900,000 | 3.2% |
Management and Insider Ownership
The management team and board members hold a combined total of approximately 338,015 shares, equating to about 1.2% of the total shares outstanding. This includes:
- The CEO holds approximately 150,000 shares.
- The CFO holds approximately 50,000 shares.
- Other executive officers collectively hold about 138,015 shares.
Stock Performance Overview
As of September 30, 2024, the stock price of Matrix Service Company has experienced fluctuations, with a recorded range of:
| Metric | Value |
|---|---|
| 52-Week High | $6.25 |
| 52-Week Low | $3.40 |
| Current Price | $4.25 |
| Market Capitalization | $117 million |
Recent Developments Affecting Ownership
Recent financial reports indicate a net loss of $9,223,000 for the three months ended September 30, 2024. This has influenced investor sentiment and stock performance:
- Basic loss per share: $(0.33)
- Net cash provided by operating activities: $11,918,000
- Total liabilities: $313,640,000
Conclusion on Ownership Dynamics
Matrix Service Company is predominantly owned by retail investors, with a significant portion of shares held by institutional investors. The management team maintains a modest stake in the company, reflecting confidence in future performance despite recent losses.
Matrix Service Company (MTRX) Mission Statement
Overview of Mission Statement
The mission statement of Matrix Service Company focuses on delivering high-quality engineering and construction services while maintaining a commitment to safety, integrity, and sustainability. The company aims to be a leading provider in the energy and industrial sectors, emphasizing innovation and operational excellence.
Financial Performance Metrics
As of September 30, 2024, Matrix Service Company reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $165,579,000 |
| Cost of Revenue | $157,766,000 |
| Gross Profit | $7,813,000 |
| Selling, General and Administrative Expenses | $18,580,000 |
| Operating Loss | ($10,767,000) |
| Net Loss | ($9,223,000) |
| Basic Loss Per Share | ($0.33) |
| Diluted Loss Per Share | ($0.33) |
Segment Performance
The company's performance was segmented into three main categories for the three months ended September 30, 2024:
| Segment | Total Revenue | Gross Profit | Operating Income (Loss) |
|---|---|---|---|
| Storage and Terminal Solutions | $78,239,000 | $4,697,000 | ($872,000) |
| Utility and Power Infrastructure | $55,912,000 | $1,307,000 | ($2,669,000) |
| Process and Industrial Facilities | $31,428,000 | $1,997,000 | $231,000 |
Backlog and Project Awards
The backlog as of September 30, 2024, is reported as follows:
| Segment | Backlog Amount |
|---|---|
| Storage and Terminal Solutions | $801,667,000 |
| Utility and Power Infrastructure | $358,150,000 |
| Process and Industrial Facilities | $252,054,000 |
| Total Backlog | $1,411,871,000 |
Liquidity and Capital Resources
As of September 30, 2024, the liquidity position of the company is as follows:
| Metric | Value |
|---|---|
| Unrestricted Cash | $124,610,000 |
| Availability under ABL Facility | $56,642,000 |
| Total Liquidity | $181,252,000 |
Conclusion on Mission Alignment
Matrix Service Company's mission statement is reflected in its financial performance, segment results, and liquidity position, demonstrating its commitment to growth and operational excellence in the energy and industrial sectors.
How Matrix Service Company (MTRX) Works
Business Model
Matrix Service Company (MTRX) operates primarily through three reportable segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. Each segment offers specialized engineering, procurement, fabrication, and construction services targeted at various sectors including energy, utilities, and industrial processes.
Financial Performance Overview
As of September 30, 2024, Matrix Service Company reported a total revenue of $165.6 million, representing a decrease of 16% compared to $197.7 million for the same period in 2023. The company experienced a net loss of $9.2 million for the quarter, compared to a loss of $3.2 million in the prior year.
| Financial Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $165,579 | $197,659 | $(32,080) | (16%) |
| Gross Profit | $7,813 | $11,859 | $(4,046) | (34%) |
| Operating Loss | $(10,767) | $(5,254) | $(5,513) | 105% |
| Net Loss | $(9,223) | $(3,167) | $(6,056) | 191% |
| Basic Loss per Share | $(0.33) | $(0.12) | $(0.21) | 175% |
Segment Performance
The revenue breakdown by segment for the three months ended September 30, 2024, is as follows:
| Segment | Revenue (in thousands) | Gross Profit (in thousands) | Operating Loss (in thousands) |
|---|---|---|---|
| Storage and Terminal Solutions | $78,239 | $4,697 | $(872) |
| Utility and Power Infrastructure | $55,912 | $1,307 | $(2,669) |
| Process and Industrial Facilities | $31,428 | $1,997 | $231 |
Cash Flow Analysis
For the three months ended September 30, 2024, Matrix Service Company generated $11.9 million in cash from operating activities. The major components of cash flows provided by operating activities included:
| Cash Flow Component | Amount (in thousands) |
|---|---|
| Net Loss | $(9,223) |
| Depreciation and Amortization | $2,515 |
| Stock-Based Compensation | $2,311 |
| Cash Effect of Changes in Operating Assets and Liabilities | $16,209 |
Liquidity Position
As of September 30, 2024, Matrix Service Company had unrestricted cash and cash equivalents amounting to $124.6 million and total liquidity of $181.2 million, which includes available credit under its asset-based lending facility.
| Liquidity Metric | As of September 30, 2024 (in thousands) | As of June 30, 2024 (in thousands) |
|---|---|---|
| Total Cash and Cash Equivalents | $149,610 | $140,615 |
| Restricted Cash | $25,000 | $25,000 |
| Unrestricted Cash | $124,610 | $115,615 |
| Available Credit | $56,642 | $53,988 |
| Total Liquidity | $181,252 | $169,603 |
Backlog and Future Prospects
As of September 30, 2024, Matrix Service Company reported a total backlog of $1.41 billion, indicating future revenue potential across its segments:
| Segment | Backlog (in thousands) |
|---|---|
| Storage and Terminal Solutions | $801,667 |
| Utility and Power Infrastructure | $358,150 |
| Process and Industrial Facilities | $252,054 |
In summary, Matrix Service Company is positioned within a competitive landscape, facing challenges in revenue generation while maintaining a solid liquidity position and a substantial backlog for future projects.
How Matrix Service Company (MTRX) Makes Money
Revenue Streams
Matrix Service Company operates through three primary segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. As of the three months ended September 30, 2024, the revenue breakdown by segment was as follows:
| Segment | Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Storage and Terminal Solutions | $78,239 | $(11,905) | (13)% |
| Utility and Power Infrastructure | $55,912 | $23,517 | 73% |
| Process and Industrial Facilities | $31,428 | $(43,692) | (58)% |
| Total Revenue | $165,579 | $(32,080) | (16)% |
Cost of Revenue
The total cost of revenue for the same period was $157,766, resulting in a gross profit of $7,813, which represents a decrease of $4,046 or 34% compared to the previous year. The gross margin was 4.7% for the first quarter of fiscal 2025, down from 6.0% in the prior year period.
Segment Performance Analysis
Each segment's performance can be analyzed as follows:
Storage and Terminal Solutions
This segment experienced a revenue decline of 13% due to a reduced volume of work on flat bottom tank new builds and maintenance work, despite some increases in LNG storage projects. The gross profit for this segment was $4,697, with a gross margin of 6.0%.
Utility and Power Infrastructure
In contrast, this segment saw a substantial increase in revenue by 73%, primarily driven by higher volumes of work for LNG peak shaving projects. However, the gross profit fell significantly to $1,307, reflecting a gross margin of only 2.3% due to under-recovery of construction overhead costs.
Process and Industrial Facilities
This segment's revenue plunged by 58% due to the completion of a large renewable diesel project. The gross profit here was $1,997, with a gross margin of 6.4%.
Operating Loss
The overall operating loss for Matrix Service Company was $10,767, compared to a loss of $5,254 in the same period of the previous year. The increase in operating loss was attributed to rising selling, general, and administrative expenses, which totaled $18,580, an increase of 9% year-over-year.
Net Loss and Earnings Per Share
The company reported a net loss of $9,223 for the three months ended September 30, 2024, compared to a net loss of $3,167 in the prior year. The basic and diluted loss per common share was $(0.33), up from $(0.12) in the previous year.
Liquidity and Capital Resources
As of September 30, 2024, Matrix Service Company had total liquidity of $181.2 million, comprising unrestricted cash and cash equivalents of $124.6 million and $56.6 million availability under their asset-based credit facility (ABL Facility).
| Liquidity Components | Amount (in thousands) |
|---|---|
| Total Cash and Cash Equivalents | $149,610 |
| Restricted Cash | $25,000 |
| Unrestricted Cash | $124,610 |
| Availability under ABL Facility | $56,642 |
| Total Liquidity | $181,252 |
Backlog
The backlog as of September 30, 2024, was $1,411,871, showing a slight decrease from the previous period. This backlog reflects expected future revenue from awarded contracts across all segments.
| Segment | Backlog (in thousands) |
|---|---|
| Storage and Terminal Solutions | $801,667 |
| Utility and Power Infrastructure | $358,150 |
| Process and Industrial Facilities | $252,054 |
| Total Backlog | $1,411,871 |
The company continues to focus on project awards, with a total of $147,977 in new project awards booked in the first quarter of fiscal 2025 across all segments.
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Resources:
- Matrix Service Company (MTRX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Matrix Service Company (MTRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Matrix Service Company (MTRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.