Mistras Group, Inc. (MG) has reported a 50.91 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $1.69 million, or $0.06 a share in the quarter, compared with $3.45 million, or $0.11 a share for the same period last year. On an adjusted basis, the company has earned $2.46 million, or $0.08 a share for the quarter.
Revenue during the quarter went down marginally by 2.47 percent to $163.32 million from $167.46 million in the previous year period. Gross margin for the quarter expanded 16 basis points over the previous year period to 26.42 percent. Total expenses were 98.01 percent of quarterly revenues, up from 96.63 percent for the same period last year. That has resulted in a contraction of 138 basis points in operating margin to 1.99 percent.
Operating income for the quarter was $3.25 million, compared with $5.65 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.25 million compared with $15 million in the prior year period. At the same time, adjusted EBITDA margin contracted 84 basis points in the quarter to 8.12 percent from 8.96 percent in the last year period.
Dr. Sotirios Vahaviolos, chairman and chief executive officer stated, "As mentioned in our recent earnings calls, the fall 2016 and spring 2017 seasons were especially challenging in North America, as workloads from many customers were less than in the prior year. These conditions caused results in our Services segment to suffer poor comparisons to prior year that more than offset continued positive performance in our International segment." Dr. Vahaviolos added: "Although the market rebound has not yet occurred, we are using this time to make further adjustments to our cost structure, and to enhance our competitive position by adding capabilities that will help our customers in new and exciting ways. We are actively quoting new business and are using this time to position Mistras to drive incrementally more value for our customers, and to make investments that will reignite our profitable growth in 2018 and beyond."
For fiscal year 2017, Mistras Group, Inc. expects revenue to be in the range of $670 million to $700 million. The company forecasts net income to be in the range of $20 million to $23 million. It projects diluted earnings per share to be in the range of $0.68 to $0.78.
Operating cash flow drops significantly
Mistras Group, Inc. has generated cash of $13.41 million from operating activities during the quarter, down 53.93 percent or $ 15.70 million, when compared with the last year period.
The company has spent $8.14 million cash to meet investing activities during the quarter as against cash outgo of $4.11 million in the last year period.
Cash flow from financing activities was $2.85 million for the quarter as against cash outgo of $18.89 million in the last year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
