PRINCETON JUNCTION, N.J., Oct. 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 first quarter of fiscal 2013, which ended August 31, 2012. During the first quarter, the Company had revenues of $113.4 million, net income of $4.3 million, or $0.15 per diluted share, and Adjusted EBITDA*, a non-GAAP measure detailed later in this release, of $15.5 million. First Quarter Fiscal 2013 Financial Highlights: In September 2012, the Company completed the acquisition of German-based GMA Holding, a leader in the field of quality assurance, non-destructive and destructive material testing, and engineering services. GMA Holding has more than 500 employees located in 11 offices throughout Germany, as well as operations in the Netherlands. Revenues for GMA Holding's most recent fiscal year were approximately $50 million and the purchase price was $36 million plus additional consideration for meeting certain profitability targets. The Company expects the GMA acquisition will be break-even for fiscal 2013. Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated, "The first quarter was another strong quarter for the Mistras model, as significant increases in revenues produced larger gains in net income, Adjusted EBITDA and operating cash flows. This is indicative of how we manage the business for our shareholders." Dr. Vahaviolos added, "We continue to expand our service offerings with the acquisition of the GMA Group that not only bring us new capabilities in the testing space, but also help increase our scale in the European market". Outlook and Guidance for Fiscal 2013 The Company's outlook is for continued double digit growth in revenue and Adjusted EBITDA*. The Company is adjusting its previously issued fiscal 2013 guidance and now projects its fiscal 2013 revenues to be in the range of $520 million to $535 million and Adjusted EBITDA* to be in the range of $76 million to $85 million. Mistras does not provide quarterly guidance, but expects to affirm or update its annual guidance at least quarterly. Earnings Conference Call In connection with this earnings release, Mistras will hold its quarterly conference call on Wednesday, October 10th 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 1-800-435-1398 and use confirmation code 90631470 when prompted. The International dial-in number is 1-617-614-4078. 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. The Mistras Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6966 For more information, please visit the Company's website at www.mistrasgroup.com or contact Frank Joyce, Chief Financial Officer at 609-716-4103. 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, and other matters. 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 for fiscal year 2012 filed with the Securities and Exchange Commission on August 14, 2012, as updated by our 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" used in this release is a financial measurement not calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP"). A reconciliation of Adjusted EBITDA to a financial measurement under GAAP is set forth in a table attached to this press release. In addition, the Company has also included tables for non-GAAP measurements "Adjusted Net Income" and "Adjusted Earnings Per Share," also reconciling these measurements to a financial measurement under GAAP. The Company believes that investors and other users of the financial statements benefit from the presentation of Adjusted EBITDA, Adjusted Net Income and adjusted earnings per share because they provide additional metrics to compare the Company's operating performance on a consistent basis and measure underlying trends and results of the Company's business.Mistras Group, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets (in thousands, except share data) August 31, 2012 May 31, 2012 ASSETS Current Assets Cash and cash equivalents $ 7,329 $ 8,410 Accounts receivable, net 87,627 104,515 Inventories, net 11,771 12,492 Deferred income taxes 1,860 1,885 Prepaid expenses and other current assets 5,190 6,321 Total current assets 113,777 133,623 Property, plant and equipment, net 62,181 63,527 Intangible assets, net 32,477 34,469 Goodwill 95,691 96,819 Other assets 697 1,378 Total assets $ 304,823 $ 329,816 LIABILITIES, PREFERRED STOCK AND EQUITY Current Liabilities Current portion of long-term debt $ 5,589 $ 5,971 Current portion of capital lease obligations 6,211 5,951 Accounts payable 7,998 11,944 Accrued expenses and other current liabilities 33,478 39,334 Income taxes payable 813 1,119 Total current liabilities 54,089 64,319 Long-term debt, net of current portion 18,087 34,258 Obligations under capital leases, net of current portion 12,644 13,094 Deferred income taxes 5,490 4,901 Other long-term liabilities 17,778 19,996 Total liabilities 108,088 136,568 Commitments and contingencies Preferred stock, 10,000,000 shares authorized -- -- Equity Common stock, $0.01 par value, 200,000,000 shares authorized, 28,133,982 and 28,025,507 shares issued and outstanding as of August 31, 2012 and May 31, 2012, respectively 281 280 Additional paid-in capital 189,669 188,443 Retained earnings 11,617 7,336 Accumulated other comprehensive loss (5,078) (3,047) Total Mistras Group, Inc. stockholders' equity 196,489 193,012 Noncontrolling interest 246 236 Total equity 196,735 193,248 Total liabilities, preferred stock and equity $ 304,823 $ 329,816 Mistras Group, Inc. and Subsidiaries Unaudited Consolidated Statement of Operations (in thousands, except per share data) Three months ended August 31, 2012 2011 Revenues: Services $ 99,225 $ 82,902 Products 14,162 8,545 Total revenues 113,387 91,447 Cost of revenues: Cost of services 70,516 56,887 Cost of products sold 5,010 3,640 Depreciation related to services 3,976 3,323 Depreciation related to products 168 177 Total cost of revenues 79,670 64,027 Gross profit 33,717 27,420 Selling, general and administrative expenses 23,492 19,381 Research and engineering 517 589 Depreciation and amortization 1,895 1,479 Acquisition-related costs (179) -- Income from operations 7,992 5,971 Other expenses Interest expense 1,046 661 Income before provision for income taxes 6,946 5,310 Provision for income taxes 2,655 2,116 Net income 4,291 3,194 Net (income) loss attributable to noncontrolling interests, net of taxes (10) 34 Net income attributable to Mistras Group, Inc. $ 4,281 $ 3,228 Earnings per common share: Basic $ 0.15 $ 0.12 Diluted $ 0.15 $ 0.11 Weighted average common shares outstanding: Basic 28,045 27,677 Diluted 29,000 28,225 Mistras Group, Inc. and Subsidiaries Unaudited Operating Data by Segment (in thousands) Three months ended August 31, 2012 2011 Revenues Services $ 82,397 $ 75,689 Products and Systems 9,534 7,513 International 24,429 9,773 Corporate and eliminations (2,973) (1,528) $ 113,387 $ 91,447 Three months ended August 31, 2012 2011 Gross profit Services $ 20,940 $ 20,308 Products and Systems 5,245 3,751 International 7,081 3,431 Corporate and eliminations 451 (70) $ 33,717 $ 27,420 Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income Attributable to Mistras Group, Inc. to EBITDA and Adjusted EBITDA (in thousands) Three months ended August 31, 2012 2011 EBITDA and Adjusted EBITDA data Net income attributable to Mistras Group, Inc. $ 4,281 $ 3,228 Interest expense 1,046 661 Provision for income taxes 2,655 2,116 Depreciation and amortization 6,039 4,979 EBITDA $ 14,021 $ 10,984 Stock compensation expense 1,634 1,002 Acquisition-related costs (179) -- Adjusted EBITDA $ 15,476 $ 11,986 Mistras Group, Inc. and Subsidiaries Unaudited Reconciliation of Net Income Attributable to Mistras Group, Inc. (GAAP) to Adjusted Net Income and Adjusted Earnings Per Share (Non-GAAP) (in thousands, except per share data) Three months ended August 31, 2012 2011 Adjusted net income Net income attributable to Mistras Group, Inc. (GAAP) $ 4,281 $ 3,228 Acquisition-related costs ($0.2 million, pre-tax for the three months ended August 31, 2012) (111) -- Adjusted net income (Non-GAAP) $ 4,170 $ 3,228 Adjusted diluted net earnings per common share Diluted earnings per common share (GAAP) $ 0.15 $ 0.11 Acquisition-related costs (0.01) -- Adjusted diluted net earnings per common share (Non-GAAP) $ 0.14 $ 0.11 CONTACT: Nestor S. Makarigakis, Manager of Marketing Communications,
marcom@mistrasgroup.com, 1(609)716-4000
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