PRINCETON JUNCTION, N.J., Jan. 9, 2012 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), a leading "one source" global provider of technology-enabled asset protection solutions, today reported financial results for the fiscal 2012 second quarter ending November 30, 2011. Revenue for the second quarter was $114.2 million, an increase of 29%, over the $88.8 million reported in the second quarter of fiscal 2011. Adjusted EBITDA*, a non-GAAP measure detailed later in this release, increased 29% to $20.6 million in the second quarter of fiscal 2012 versus $15.9 million in the second quarter of fiscal 2011. Net income for the second quarter of fiscal 2012 grew by 40% to $8.0 million, or $0.28 per diluted share, versus $5.7 million, or $0.21 per diluted share, in the second quarter of fiscal 2011. During the quarter the Company recorded a $0.3 million pre-tax benefit from acquisition related activities which increased diluted earnings per share by approximately $0.01.

Consistent with prior quarters, organic growth contributed the bulk of the revenue gain. In the second quarter of fiscal 2012 the organic growth rate was 19%, followed by acquisition growth of 9% and the balance due to foreign currency fluctuations. Also consistent with prior quarters, the second quarter revenue gain was achieved across a broad range of target markets.

Additional Financial Highlights for the Fiscal 2012 second quarter and 6 month period:

  • In the first six months of fiscal 2012, revenues grew by 31% to $205.7 million, adjusted EBITDA grew by 33% to $32.5 million, and net income grew by 54% to $11.2 million, or $0.39 per diluted share.
  • Operating income margins rose in both the second quarter and the first six months of fiscal 2012, increasing to 9.7% of revenues in the first six months of fiscal 2012, versus 8.6% in the prior year.
  • SG&A as a percent of revenues declined in both the second quarter and first six months of fiscal 2012, declining to 18.8% of revenues in the first six months of fiscal 2012, versus 19.8 % in the prior year.
  • After the quarter close, the Company replaced its existing revolving credit facility with a new five-year, $125.0 million facility which matures in December 2016.

Chairman and Chief Executive Officer Dr. Sotirios J. Vahaviolos stated that, "I am pleased with the momentum of our business in the second quarter, as we achieved new highs in Revenue, Adjusted EBITDA, Net Income and EPS. Once again, our 19% organic revenue growth rate was a significant driver behind our results."

Business Outlook/Guidance for Fiscal Year 2012

The Company's outlook is for continued double digit growth in revenue and Adjusted EDITDA*. Based on the results of the first six months of fiscal 2012, the Company is raising its previously issued guidance and now projects its fiscal 2012 revenues to be in the range of $400 million to $415 million, up from the previous range of $375 million to $390 million, and Adjusted EBITDA* to be in the range of $64 million to $68 million, up from the previous range of $59 million to $64 million. Mistras does not provide specific guidance for individual quarters, but will reaffirm or update its annual guidance at least quarterly.

Dr. Vahaviolos concluded, "We are pleased with the positive developments that we have seen in many of our end markets thus far in the year and we expect that our unique approach of providing 'One Source Asset Protection Solutions' to our customers will continue to receive broad acceptance worldwide for the remainder of this year and beyond."

Earnings Conference Call

In connection with this earnings release, Mistras will hold its quarterly conference call on Monday, January 9, 2012 at 9:00 a.m. (Eastern). The call will be broadcast over the Web and can be accessed on Mistras' Website, www.mistrasgroup.com. Individuals in the U.S. wishing to participate in the conference call by phone may call 1-866-730-5762 and use confirmation code 47865317 when prompted. The International dial-in number is 1-857-350-1586.

About Mistras Group, Inc.

Mistras offers one of the broadest "one source" services and technology-enabled asset protection solution portfolios in the industry used to evaluate the structural integrity of energy, industrial and public infrastructure. Mission critical services and solutions are delivered globally and provide customers with the ability to extend the useful life of their assets, improve productivity and profitability, comply with government safety and environmental regulations and enhance risk management operational decisions.

Mistras uniquely combines its industry leading products and technologies - 24/7 on-line monitoring of critical assets; mechanical integrity ("MI") and non-destructive testing ("NDT") services; and its proprietary world class data warehousing and analysis software - to provide comprehensive and competitive products, systems and services solutions from a single source provider.

For more information, please visit the company's website at www.mistrasgroup.com or contact Frank Joyce, Chief Financial Officer at 609-716-4103.

The MISTRAS Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6966

Forward-Looking and Cautionary Statements

Certain statements made in this press release are "forward-looking statements" about Mistras' financial results and estimates, products and services, business model, strategy, growth opportunities, profitability and competitive position. These forward-looking statements generally use words such as "future," "possible," "potential," "targeted," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," "project," "will," "may," "should," "could," "would" and other similar words and phrases. Such statements are not guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, if at all. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. A list, description and discussion of these and other risks and uncertainties can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 12, 2011, as updated by the Company's reports on Form 10-Q and Form 8-K. The forward-looking statements are made as of the date hereof, and Mistras undertakes no obligation to update such statements as a result of new information, future events or otherwise.

* Use of Non-GAAP Measures

The term "Adjusted EBITDA" is a financial measurement not calculated in accordance with U.S. generally accepted accounting principles.  The Company believes that investors and other users of the financial statements benefit from the presentation of Adjusted EBITDA because it provides an additional metric to compare the Company's operating performance on a consistent basis and measure underlying trends and results of the Company's business.  A reconciliation of Adjusted EBITDA to a financial measurement under GAAP is set forth in a table attached to this press release.

Mistras Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except share data)
November 30, 2011May 31, 2011
 ASSETS   
Current Assets
Cash and cash equivalents$ 5,319$ 10,879
Restricted cash3,700--
Accounts receivable, net102,78278,031
Inventories, net10,9979,830
Deferred income taxes1,2801,278
Prepaid expenses and other current assets8,3056,761
Total current assets132,383106,779
Property, plant and equipment, net54,21649,168
Intangible assets, net27,82627,304
Goodwill71,81464,146
Other assets1,3231,240
Total assets$ 287,562$ 248,637
LIABILITIES, PREFERRED STOCK AND EQUITY
Current Liabilities
Current portion of long-term debt$ 5,733$ 7,226
Current portion of capital lease obligations6,3395,853
Accounts payable6,1716,656
Accrued expenses and other current liabilities33,11828,028
Income taxes payable1,9252,825
Total current liabilities53,28650,588
Long-term debt, net of current portion34,19114,625
Obligations under capital leases, net of current portion12,2839,623
Deferred income taxes2,9162,863
Other long-term liabilities3,7023,452
Total liabilities106,37881,151
Commitments and contingencies
Preferred stock, 10,000,000 shares authorized----
Equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 27,916,036 and 27,667,122 shares issued and outstanding as of November 30, 2011 and May 31, 2011, respectively279277
Additional paid-in capital184,553180,594
Accumulated deficit(2,833)(14,017)
Accumulated other comprehensive (loss) income(1,065)303
Total Mistras Group, Inc. stockholders' equity180,934167,157
Noncontrolling interest250329
Total equity181,184167,486
Total liabilities, preferred stock and equity$ 287,562$ 248,637
Mistras Group, Inc.
Unaudited Consolidated Statement of Operations
(in thousands, except per share data)
 Three months ended November 30,  Six months ended November 30, 
2011201020112010
Revenues:
Services$ 103,942$ 82,953$ 186,844$ 144,205
Products10,2785,88418,82313,042
Total revenues114,22088,837205,667157,247
Cost of revenues:
Cost of services71,04755,667127,93497,058
Cost of products sold4,2162,0677,8565,344
Depreciation related to services3,5563,1366,8795,945
Depreciation related to products186159363314
Total cost of revenues79,00561,029143,032108,661
Gross profit35,21527,80862,63548,586
Selling, general and administrative expenses19,37815,61538,75931,094
Research and engineering6025691,1911,124
Depreciation and amortization1,5031,3262,9822,504
Acquisition-related costs(339)--(339)--
Legal reserve--101--351
Income from operations14,07110,19720,04213,513
Other expenses
Interest expense1,1456711,8061,361
Income before provision for income taxes12,9269,52618,23612,152
Provision for income taxes5,0083,8187,1244,872
Net income7,9185,70811,1127,280
Net loss (income) attributable to noncontrolling interests, net of taxes38(30)72(10)
Net income attributable to Mistras Group, Inc.$ 7,956$ 5,678$ 11,184$ 7,270
Earnings per common share:
Basic$ 0.29$ 0.21$ 0.40$ 0.27
Diluted$ 0.28$ 0.21$ 0.39$ 0.27
Weighted average common shares outstanding:
Basic27,78626,66527,73126,664
Diluted28,60026,81628,41726,795
Mistras Group, Inc.
Unaudited Operating Data by Segment
(in thousands)
 Three months ended November 30,  Six months ended November 30, 
2011201020112010
 Revenues 
Services$ 96,909$ 76,108$ 172,598$ 131,390
Products and Systems9,0925,22816,60510,538
International11,8579,35021,63018,390
Corporate and eliminations(3,638)(1,849)(5,166)(3,071)
$ 114,220$ 88,837$ 205,667$ 157,247
 Three months ended November 30,  Six months ended November 30, 
2011201020112010
 Gross profit 
Services$ 27,053$ 21,753$ 47,361$ 36,754
Products and Systems4,2632,8218,0145,390
International4,2463,2607,6776,531
Corporate and eliminations(347)(26)(417)(89)
$ 35,215$ 27,808$ 62,635$ 48,586
Mistras Group, Inc.
Unaudited Reconciliation of
Net Income Attributable to Mistras Group, Inc. to EBITDA and Adjusted EBITDA
(in thousands)
 Three months ended November 30,  Six months ended November 30, 
2011201020112010
EBITDA and Adjusted EBITDA data
Net income attributable to Mistras Group, Inc.$ 7,956$ 5,678$ 11,184$ 7,270
Interest expense1,1456711,8061,361
Provision for income taxes5,0083,8187,1244,872
Depreciation and amortization5,2454,62110,2248,763
EBITDA$ 19,354$ 14,788$ 30,338$ 22,266
Stock Compensation1,5451,0472,5471,776
Acquisition-related costs(339)--(339)--
Legal reserve--101--351
Adjusted EBITDA$ 20,560$ 15,936$ 32,546$ 24,393
CONTACT: Nestor S. Makarigakis

         Manager of Marketing Communications

         marcom@mistrasgroup.com

         1(609)716-4000