PRINCETON JUNCTION, N.J., Jan. 8, 2013 (GLOBE NEWSWIRE) -- Mistras Group, Inc. (NYSE:MG), a leading "one source" global provider of technology-enabled asset protection solutions, today reported financial results for its second quarter ended November 30, 2012. Revenue for the second quarter of fiscal 2013 was $137.7 million and net income was $9.2 million, or $0.32 per diluted share.

Summary financial highlights for the Fiscal 2013 second quarter and six month periods;

  • Revenue grew by 21% to $137.7 million for the quarter. In the first six months, revenues grew by 22% to $251.1 million driven by acquisition growth of 18% and organic growth of 5%.
  • Adjusted EBITDA, a non-GAAP measure detailed later in this release, increased by 16% to $23.9 million and 21% to $39.3 million for the three and six month periods ended November 30, 2012, respectively.
  • Gross profit increased by 19% to $41.9 million in the second quarter and 21% in the first six months to $75.6 million.
  • Net Income increased by 15% to $9.2 million for the quarter and 20% in the first six months to $13.5 million
  • During the first six months of fiscal 2013, Net Cash Provided by Operating Activities grew to $27.4 million and EPS increased to $0.46 per diluted share versus $0.39 per diluted share in the prior year.

Chairman and Chief Executive Officer, Dr. Sotirios J. Vahaviolos stated, "Despite an uncertain economic environment in capital products and services spending, the Mistras model once again delivered strong financial results in our Second Fiscal Quarter. We believe that our leadership position in Asset Protection Solutions, along with our model which achieves revenue growth both organically and through acquisitions, will continue to be the right model for our shareholders in the future."

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 fiscal 2013 guidance and now expects revenues for fiscal 2013 to be in the range of $525 million to $535 million and Adjusted EBITDA* to be in the range of $78 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, January 9th 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 1-888-396-2298 and use confirmation code 54810286 when prompted. The International dial-in number is 1-617-847-8708.

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, 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)
November 30, 2012May 31, 2012
 ASSETS 
Current Assets
Cash and cash equivalents$ 7,985$ 8,410
Accounts receivable, net105,901104,515
Inventories, net11,54212,492
Deferred income taxes1,8761,885
Prepaid expenses and other current assets7,6506,321
Total current assets134,954133,623
Property, plant and equipment, net69,79663,527
Intangible assets, net58,20134,469
Goodwill109,12696,819
Other assets7501,378
Total assets$ 372,827$ 329,816
LIABILITIES, PREFERRED STOCK AND EQUITY
Current Liabilities
Current portion of long-term debt$ 7,948$ 5,971
Current portion of capital lease obligations6,8935,951
Accounts payable8,93711,944
Accrued expenses and other current liabilities41,59139,334
Income taxes payable4,5701,119
Total current liabilities69,93964,319
Long-term debt, net of current portion51,71734,258
Obligations under capital leases, net of current portion12,76313,094
Deferred income taxes5,7024,901
Other long-term liabilities23,35019,996
Total liabilities163,471136,568
Commitments and contingencies
Preferred stock, 10,000,000 shares authorized----
Equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,161,857 and 28,025,507 shares issued and outstanding as of November 30, 2012 and May 31, 2012, respectively282280
Additional paid-in capital191,586188,443
Retained earnings20,7807,336
Accumulated other comprehensive loss(3,561)(3,047)
Total Mistras Group, Inc. stockholders' equity209,087193,012
Noncontrolling interest269236
Total equity209,356193,248
Total liabilities, preferred stock and equity$ 372,827$ 329,816
Mistras Group, Inc.
Unaudited Consolidated Statement of Operations
Three and Six Months Ended November 30, 2012 and November 30, 2011
 Three months ended November 30,  Six months ended November 30, 
2012201120122011
Revenues:
Services$ 127,731$ 103,942$ 226,956$ 186,844
Products9,99810,27824,16018,823
Total revenues137,729114,220251,116205,667
Cost of revenues:
Cost of services87,04471,047157,560127,934
Cost of products sold4,4854,2169,4957,856
Depreciation related to services4,1243,5568,1006,879
Depreciation related to products171186339363
Total cost of revenues95,82479,005175,494143,032
Gross profit41,90535,21575,62262,635
Selling, general and administrative expenses23,36219,37846,85438,759
Research and engineering5306021,0471,191
Depreciation and amortization2,1671,5034,0622,982
Acquisition-related expense(160)(339)(339)(339)
Income from operations16,00614,07123,99820,042
Other expenses
Interest expense1,0751,1452,1211,806
Income before provision for income taxes14,93112,92621,87718,236
Provision for income taxes5,7455,0088,4007,124
Net income9,1867,91813,47711,112
Net (income) loss attributable to noncontrolling interests, net of taxes(23)38(33)72
Net income attributable to Mistras Group, Inc.$ 9,163$ 7,956$ 13,444$ 11,184
Earnings per common share:
Basic$ 0.33$ 0.29$ 0.48$ 0.40
Diluted$ 0.32$ 0.28$ 0.46$ 0.39
Weighted average common shares outstanding:
Basic28,14427,78628,09427,731
Diluted29,00828,60029,03628,417
Mistras Group, Inc. and Subsidiaries
Unaudited Operating Data by Segment
(in thousands)
 Three months ended November 30,  Six months ended November 30, 
2012201120122011
 Revenues 
Services$ 105,213$ 96,909$ 187,610$ 172,598
International26,77711,85751,20621,630
Products and Systems8,4399,09217,97316,605
Corporate and eliminations(2,700)(3,638)(5,673)(5,166)
$ 137,729$ 114,220$ 251,116$ 205,667
 Three months ended November 30,  Six months ended November 30, 
2012201120122011
 Gross profit 
Services$ 30,692$ 27,053$ 51,632$ 47,361
International7,2994,24614,3807,677
Products and System3,9754,2639,2208,014
Corporate and eliminations(61)(347)390(417)
$ 41,905$ 35,215$ 75,622$ 62,635
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 November 30,  Six months ended November 30, 
2012201120122011
EBITDA and Adjusted EBITDA data
Net income attributable to Mistras Group, Inc.$ 9,163$ 7,956$ 13,444$ 11,184
Interest expense1,0751,1452,1211,806
Provision for income taxes5,7455,0088,4007,124
Depreciation and amortization6,4625,24512,50110,224
EBITDA22,44519,35436,46630,338
Stock compensation expense1,5721,5453,2062,547
Acquisition-related costs(160)(339)(339)(339)
Adjusted EBITDA$ 23,857$ 20,560$ 39,333$ 32,546
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 November 30,  Six months ended November 30, 
2012201120122011
Adjusted net income
Net income attributable to Mistras Group, Inc. (GAAP)$ 9,163$ 7,956$ 13,444$ 11,184
Acquisition-related costs ($0.2 million and $0.3 million, pre-tax for the three months ended November 30, 2012 and 2011 respectively and $0.3 million, pretax for each of the six months ended November 30, 2012 and 2011)(98)(208)(208)(206)
Adjusted net income (Non-GAAP)$ 9,065$ 7,748$ 13,236$ 10,978
Adjusted diluted net earnings per common share
Diluted earnings per common share (GAAP)$ 0.32$ 0.28$ 0.46$ 0.39
Acquisition-related costs--(0.01)(0.01)(0.01)
Adjusted diluted net earnings per common share (Non-GAAP)$ 0.32$ 0.27$ 0.45$ 0.38
CONTACT: Nestor S. Makarigakis, Manager of Marketing Communications,

         marcom@mistrasgroup.com, 1(609)716-4000