Matrix Service Company Provides Third Quarter Business Update
28 April 2017 - 8:30AM
Results negatively impacted by charge on a large
power project as well as continuing market softness and project
delays; Company remains optimistic about the long-term performance
of the business
Matrix Service Company (Nasdaq:MTRX), a leading
contractor to the energy, power and industrial markets across North
America, today announced preliminary financial results for its
third quarter ended March 31, 2017.
- After adjusting for project charge, consolidated
revenue is expected to be approximately $250 million
- Company expects to record a quarterly net loss in the
range of $13 to $15 million, resulting in quarterly loss per share
of $0.49 to $0.56
- Consolidated backlog is projected to be approximately
$790 million, compared to $814 million at December 31,
2016
- Full-year earnings per share expected to be near
breakeven
The principal cause for the loss in the quarter
is the forecasted deterioration of the financial outcome of a major
project in the Electrical Infrastructure segment. This project is
being impacted by various ongoing factors that are causing delays
in schedule progress, labor productivity, and system turnover.
“We are very confident in our project team’s
ability to complete the project in a safe and high quality manner,”
said John R. Hewitt, President and Chief Executive Officer of
Matrix Service Company. “In addition, given our strong relationship
and historical experience with this customer to successfully work
through critical issues, we believe an equitable solution for both
parties can be achieved. We will continue to work with our customer
to successfully complete this project, which is currently scheduled
to be complete in fiscal 2018.”
In addition to the project charge, financial
results have been negatively impacted by continuing market softness
and delays in new project awards and starts. This spending softness
is indicative of the challenging market conditions faced across the
market segments the Company serves.
“Our demonstrated approach to maintaining and
managing our balance sheet allows us to work through these
challenges. As we do, we also continue to manage our cost structure
while still positioning the Company for success as markets
improve,” Hewitt said. “We believe the capital project and
maintenance spending environment is improving and our bidding
activity is strong, bringing renewed optimism for these end markets
as we turn our focus toward fiscal 2018. With our diversified
platform, along with the added capacity and project opportunities
already being generated by our recent acquisition of Houston
Interests, we remain optimistic about the long-term performance of
our business.”
The preliminary, unaudited information contained
in this announcement remains subject to change based on the
Company's quarter-end closing procedures, including the execution
of its internal controls over financial reporting and the
subsequent occurrence or identification of events prior to the
formal issuance of the quarterly financial statements.
Additionally, the Company’s independent registered public
accounting firm has not completed its review of the Company’s
results for the third fiscal quarter.
Third Quarter Conference Call / Webcast
Details
The Company will provide greater detail in its
Third Quarter full earnings release after market close on Tuesday,
May 9, 2017. In conjunction with this earnings release,
Matrix Service Company will host a conference call / webcast with
John R. Hewitt, President and CEO, and Kevin S. Cavanah, Vice
President and CFO. The call will take place at 10:30 a.m.
(Eastern) / 9:30 a.m. (Central) on Wednesday, May 10, 2017 and will
be simultaneously broadcast live over the Internet which can be
accessed at the Company’s website at
matrixservicecompany.com on the Investors’ page under
Conference Calls/Events. Please allow extra time prior to the
call to visit the site and download the streaming media software
required to listen to the Internet broadcast. The conference
call will be recorded and will be available for replay within one
hour of completion of the live call and can be accessed following
the same link as the live call.
About Matrix Service Company
Founded in 1984, Matrix Service Company is
parent to a family of companies that include Matrix Service, Matrix
NAC, Matrix PDM Engineering and Matrix Applied Technologies. Our
subsidiaries design, build and maintain infrastructure critical to
North America’s energy, power and industrial markets. Matrix
Service Company is headquartered in Tulsa, Oklahoma with subsidiary
offices located throughout the United States and Canada, as well as
Sydney, Australia and Seoul, South Korea.
The Company reports its financial results based
on four key operating segments: Electrical Infrastructure, Storage
Solutions, Oil Gas & Chemical and Industrial. To learn more
about Matrix Service Company, visit matrixservicecompany.com.
This release contains forward-looking statements
that are made in reliance upon the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
statements are generally accompanied by words such as "anticipate,"
"continues," "expect," "forecast," "outlook," "believe,"
"estimate," "should" and "will" and words of similar effect that
convey future meaning, concerning the Company's operations,
economic performance and management's best judgment as to what may
occur in the future. Future events involve risks and
uncertainties that may cause actual results to differ materially
from those we currently anticipate. The actual results for
the current and future periods and other corporate developments
will depend upon a number of economic, competitive and other
influences, including the potential for further deterioration of
the project results discussed above, and those factors discussed in
the “Risk Factors” and “Forward Looking Statements” sections and
elsewhere in the Company's reports and filings made from time to
time with the Securities and Exchange Commission. Many of
these risks and uncertainties are beyond the control of the
Company, and any one of which, or a combination of which, could
materially and adversely affect the results of the Company's
operations and its financial condition. We undertake no
obligation to update information contained in this release.
For more information, please contact:
Matrix Service Company
Kevin S. Cavanah
Vice President and CFO
T: 918-838-8822
Email:kcavanah@matrixservicecompany.com
Matrix Service (NASDAQ:MTRX)
Historical Stock Chart
From Apr 2024 to May 2024
Matrix Service (NASDAQ:MTRX)
Historical Stock Chart
From May 2023 to May 2024