MTRX
$12.44
Matrix Service
($.16)
(1.27%)
Earnings Details
3rd Quarter March 2021
Monday, May 10, 2021 4:05:00 PM
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Summary

Matrix Service (MTRX) Recent Earnings

Matrix Service (MTRX) reported a 3rd Quarter March 2021 loss of $0.43 per share on revenue of $148.3 million. The consensus earnings estimate was $0.03 per share on revenue of $188.1 million. Revenue fell 40.3% compared to the same quarter a year ago.

Matrix Service Co provides engineering, fabrication, infrastructure, construction, and maintenance services to the oil, gas, power, petrochemical, industrial, mining and minerals markets.

Results
Reported Earnings
($0.43)
Earnings Whisper
-
Consensus Estimate
$0.03
Reported Revenue
$148.3 Mil
Revenue Estimate
$188.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Matrix Service Company Reports Third Quarter Fiscal 2021 Results

TULSA, Okla., May 10, 2021 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX), a leading contractor to the energy and industrial markets across North America, today reported financial results for its third quarter of fiscal 2021.

Key highlights:

  • Third quarter revenue of $148.3 million was negatively affected by continued market disruptions caused by the COVID-19 pandemic, as well as severe weather impacts on select projects
  • Third quarter loss per fully diluted share of $0.49, adjusted loss per fully diluted share of $0.43(1)
  • Book-to-bill of 0.9 on project awards of $138.0 million in the quarter and backlog of $538.3 million; expectations for increasing project awards as we move through the calendar year
  • The Company is actively working to convert its extensive clean energy opportunity pipeline which includes LNG and hydrogen, supported by our relationship with Chart Industries
  • Balance sheet remains strong with $73.8 million in cash and no debt
  • The Company expects results to improve as business volumes increase following $60 million of cost reductions achieved over the last year

“As we proceed through the year, as COVID-19 infection rates continue to decline, we are seeing signs of improvement across our end markets. Bidding opportunities, especially in key strategic areas, continue to grow and our strong balance sheet, combined with a leaner organization, position us to create shareholder value as the world returns to normalcy. Additionally, our increasing focus on providing our customers clean energy solutions is creating new, significant opportunities for the business,” said Matrix Service Company president and CEO John R. Hewitt. “While certain project awards and starts have certainly been delayed, we believe the third quarter was the bottom of the cycle and expect the fourth quarter to significantly improve. We expect this improvement to continue as we move into fiscal 2022.”

Update on Impact of COVID-19 Pandemic

Throughout the course of the COVID-19 pandemic, the Company's top priority has been to maintain a safe working environment for all field and office employees, customers and business partners. While North America has seen a significant reduction in infection rates and an equally significant increase in vaccine availability, our project teams, in coordination with our clients, continue to operate under enhanced work processes to protect the health and safety of everyone on our job sites.

Additionally, in direct response to market conditions, many of which are a result of COVID-19’s impact on energy demand over the last year, the Company has reduced its cost structure in excess of $60 million, or approximately 25%, with a third of those reductions related to SG&A and the rest related to construction overhead, which is included in cost of revenue in the income statement. Despite these significant reductions in construction overhead, our third quarter revenue did not allow for complete recovery of overhead, which reduced gross margin. Based on our opportunity pipeline and the strengthening market, we believe our current adjusted overhead levels are appropriate. While the Company will continue to manage its cost structure, we are also focused on rebuilding our backlog and restoring revenue volume to more normalized levels.

Third Quarter Fiscal 2021 Results

Consolidated

Consolidated revenue was $148.3 million for the three months ended March 31, 2021, compared to $248.3 million in the same period in the prior fiscal year. On a segment basis, revenue decreased in the Storage and Terminal Solutions, Process and Industrial Facilities, and Utility and Power Infrastructure segments by $57.0 million, $32.1 million, and $10.9 million, respectively.

Consolidated gross profit decreased to $1.6 million in the three months ended March 31, 2021 compared to $20.5 million in the same period in the prior fiscal year. Gross margin decreased to 1.1% in the three months ended March 31, 2021 compared to 8.2% in the same period in the prior fiscal year. Gross margins in fiscal 2021 were largely impacted negatively by lower than forecasted volumes, which led to under recovery of construction overhead costs as well as a lower than previously forecasted margin on a large capital project in the Utility and Power Infrastructure segment. These negative impacts were partially offset by increases in estimated recoveries on other completed capital projects.

Consolidated SG&A expenses were $17.2 million in the three months ended March 31, 2021 compared to $19.7 million in the same period a year earlier. The decrease is primarily attributable to implemented cost reductions.

In connection with these cost reductions, the Company recorded $1.9 million of restructuring costs in the three months ended March 31, 2021.

For the three months ended March 31, 2021, we had a net loss of $12.9 million, or $0.49 per fully diluted share, compared to a net loss of $5.5 million, or $0.21 per fully diluted share, in the three months ended March 31, 2020. For the three months ended March 31, 2021, the adjusted net loss was $11.5 million, or $0.43 per fully diluted share, compared to an adjusted net loss of $0.4 million, or $0.02 per fully diluted share, in the three months ended March 31, 2020(1).

Utility and Power Infrastructure

Revenue for the Utility and Power Infrastructure segment was $44.7 million in the three months ended March 31, 2021 compared to $55.7 million in the same period a year earlier. The decrease is due to lower volumes of power generation and power delivery work.

The segment gross margin (loss) was (10.5)% in fiscal 2021 compared to 5.6% in fiscal 2020. The fiscal 2021 segment gross margin was negatively impacted by an increase in the forecasted costs to complete a large capital project, which resulted in a decrease in gross profit of $8.9 million. The change in estimate was due to lower than previously forecasted productivity caused by excessive rain at the project site, the continuing impact of COVID-19, and rework which led to higher costs and some schedule compression. The profit on future revenue related to this project will be recognized based on the current project forecast, which is reduced, but near our expected range for the segment. In addition, segment gross margin was negatively impacted by low volumes, which led to the under recovery of construction overhead costs. These negative impacts were partially offset by good project execution throughout the remainder of the segment.

Performance in the power delivery business continues to be strong on lower revenue. Bidding activity is strong and we expect project awards to improve. Similarly, our opportunity pipeline for LNG peak shaving projects is building, however those awards, while significant, can be less frequent. During the third quarter of fiscal 2021, we received a key contract for an upgrade of an LNG peak shaving facility. We are optimistic that the priorities of the Biden Administration will lead to increased opportunities in this segment.

Process and Industrial Facilities

Revenue for the Process and Industrial Facilities segment was $42.8 million in the three months ended March 31, 2021 compared to $75.0 million in the same period a year earlier. The decrease is primarily due to lower volumes of midstream gas and refinery capital projects. The decrease was also attributable to the completion of our remaining iron and steel projects in the third quarter of fiscal 2020 after our strategic exit from the business in the same period.

The segment gross margin was (0.4)% for the three months ended March 31, 2021 compared to 4.1% in the same period last year. Project execution generally met our expectations in the current quarter, however, segment gross margin was negatively impacted by low volumes, which led to the under recovery of construction overhead costs, and an adjustment related to the Company's assessment of the amount due on a completed project.

The short-term impact of the global pandemic on the Company's refinery maintenance operations has moderated. We saw an increase in demand for refinery and maintenance work on existing long-term maintenance contracts with certain customers. However, other customers continue to delay or reduce discretionary maintenance and capital spending. In addition, we continue to see strong demand for thermal vacuum chambers, as well as increasing opportunities in mining and minerals and chemicals. The larger midstream gas projects continue to be limited, but we are seeing some activity in smaller capital work.

Storage and Terminal Solutions

Revenue for the Storage and Terminal Solutions segment was $60.7 million in the three months ended March 31, 2021 compared to $117.7 million in the same period a year earlier. The decrease in segment revenue is primarily a result of lower volumes of crude oil tank and terminal capital work.

The segment gross margins were 10.6% and 12.7% in the three months ended March 31, 2021 and March 31, 2020, respectively. The fiscal 2021 segment gross margin was positively impacted by additional estimated recoveries of unpriced change orders on a large crude oil terminal project following the achievement of mechanical completion and demobilization from the project site. The project's financial impact for the three months ended March 31, 2021 was a $3.9 million increase to gross profit. The benefit of this adjustment was partially offset by the under recovery of construction overhead costs caused by lower revenue volumes.

We have seen deferrals in award dates and lengthening award cycles as a result of the COVID-19 pandemic and its disruption of global energy demand. Opportunities in crude oil tanks and terminals are limited. However, this segment also includes a strong funnel of opportunities in North America, Central America and the Caribbean for storage infrastructure projects related to natural gas, LNG, ammonia, hydrogen, NGLs and other forms of renewable energy that support clean energy investments, President Biden's priorities, and chemical feed stocks.

Nine Month Fiscal 2021 Results

Consolidated revenue was $498.5 million for the nine months ended March 31, 2021, compared to $905.1 million in the same period in the prior fiscal year. On a segment basis, revenue decreased for the Process and Industrial Facilities and Storage and Terminal Solutions segments by $232.7 million, and $178.8 million, respectively. These decreases were partially offset by an increase in the Utility and Power Infrastructure segment of $4.9 million. The lower revenue in the Process and Industrial Facilities segment was due to our strategic exit from the domestic iron and steel business and the lower revenue in the Storage and Terminal Solutions segment was due to lower levels of crude terminal capital work.

Consolidated gross profit decreased to $31.2 million in the nine months ended March 31, 2021 compared to $82.9 million in the same period in the prior fiscal year. Gross margin decreased to 6.3% in the nine months ended March 31, 2021 compared to 9.2% in the same period in the prior fiscal year. Gross margins in fiscal 2021 were negatively impacted by lower than forecasted volumes, which led to under recovery of construction overhead costs as well as a lower than previously forecasted margin on a large capital project in the Utility and Power Infrastructure segment.

Consolidated SG&A expenses were $52.0 million in the nine months ended March 31, 2021 compared to $66.6 million in the same period a year earlier. The 21.8% decrease is primarily attributable to implemented cost reductions.

In connection with these cost reductions, the Company recorded $6.6 million of restructuring costs in the nine months ended March 31, 2021.

For the nine months ended March 31, 2021, we had a net loss of $20.5 million, or $0.78 per fully diluted share, compared to a net loss of $27.4 million, or $1.02 per fully diluted share, in the nine months ended March 31, 2020. For the nine months ended March 31, 2021, the adjusted net loss was $15.6 million, or $0.59 per fully diluted share, compared to adjusted net income of $11.0 million, or $0.40 per fully diluted share, in the nine months ended March 31, 2020(1).

Income Tax Expense

Our effective tax rates for the three and nine months ended March 31, 2021 were 28.2% and 22.6%, respectively.

Backlog

Backlog at March 31, 2021 was $538.3 million. The quarterly and year-to-date book-to-bill ratios were 0.9 and 0.7 on project awards of $138.0 million and $352.6 million, respectively. During the quarter, the Company removed a previously awarded project from backlog as the customer delayed construction. With the exception of money spent under the Limited Notice to Proceed, the balance of the backlog removed was $74.2 million. The Company was paid for all work performed on the project and will rebid the project when the customer makes the final investment decision.

Financial Position and Credit Facility

At March 31, 2021 the Company had a cash balance of $73.8 million and no debt. On May 4, 2021, the Company amended its credit agreement due to the impact COVID-19 had on the Company’s earnings over the last four quarters. The amendment temporarily eliminates our financial covenants through the quarter ending December 31, 2021. The terms of the amended credit agreement include certain restrictions and minimum requirements that are described in the Company’s Form 10-Q filed with the Securities and Exchange Commission on May 10, 2021.

The Company’s balance sheet is strong and sufficient to support the business. The Company is confident it will satisfy the terms of the amended credit agreement.

(1)Non-GAAP Financial Measure

Adjusted earnings (loss) per share is a non-GAAP financial measure which excludes the financial impact of certain impairment charges, restructuring costs and tax reserves. In the three and nine months ended March 31, 2021, earnings were adjusted for restructuring costs only. See the Non-GAAP Financial Measures section included at the end of this release for a reconciliation to earnings per share.

Conference Call / Webcast Details

In conjunction with the 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 Tuesday, May 11, 2021 and will be simultaneously broadcast live over the Internet which can be accessed at the Company’s website at matrixservicecompany.com under Investor Relations, Events and Presentations. 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.

Dial in - Toll-Free: 1-888-660-6127
Dial in - Toll: 1-973-890-8355
Audience Passcode: 6676476

About Matrix Service Company

Matrix Service Company (Nasdaq: MTRX), through its subsidiaries, is a leading North American industrial engineering and construction contractor headquartered in Tulsa, Oklahoma with offices located throughout the United States and Canada, as well as Sydney, Australia and Seoul, South Korea.

The Company reports its financial results in three key operating segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions.

With a focus on sustainability, building strong Environment, Social and Governance (ESG) practices, and living our core values, Matrix ranks among the Top 100 Contractors by Engineering-News Record, was recognized for its Board diversification by 2020 Women on Boards, is an active signatory to CEO Action for Diversity and Inclusion, and is consistently recognized as a Great Place to Work®. 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 successful implementation of the Company's business improvement plan and the 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, except as required by law.

For more information, please contact:

Kevin S. Cavanah
Vice President and CFO
T: 918-838-8822
Email: kcavanah@matrixservicecompany.com  

Kellie Smythe
Senior Director, Investor Relations
T: 918-359-8267
Email: ksmythe@matrixservicecompany.com 


Matrix Service Company
Condensed Consolidated Statements of Income
(unaudited)
(In thousands, except per share data) 

  Three Months Ended Nine Months Ended
  March 31,
2021
 March 31,
2020
 March 31,
2021
 March 31,
2020
Revenue $148,260  $248,327  $498,499  $905,101 
Cost of revenue 146,700  227,850  467,276  822,158 
Gross profit 1,560  20,477  31,223  82,943 
Selling, general and administrative expenses 17,179  19,718  52,031  66,574 
Goodwill and other intangible asset impairments       38,515 
Restructuring costs 1,860  6,559  6,585  6,559 
Operating loss (17,479) (5,800) (27,393) (28,705)
Other income (expense):        
Interest expense (322) (398) (1,055) (1,231)
Interest income 25  356  96  1,247 
Other (157) (767) 1,849  (368)
Loss before income tax benefit (17,933) (6,609) (26,503) (29,057)
Benefit from federal, state and foreign income taxes (5,060) (1,114) (6,002) (1,705)
Net loss $(12,873) $(5,495) $(20,501) $(27,352)
         
Basic loss per common share $(0.49) $(0.21) $(0.78) $(1.02)
Diluted loss per common share $(0.49) $(0.21) $(0.78) $(1.02)
Weighted average common shares outstanding:        
Basic 26,515  26,478  26,422  26,781 
Diluted 26,515  26,478  26,422  26,781 


Matrix Service Company
Condensed Consolidated Balance Sheets
(unaudited)
(In thousands) 

 March 31,
2021
 June 30,
2020
Assets   
Current assets:   
Cash and cash equivalents$73,751  $100,036 
Accounts receivable, less allowances (March 31, 2021—$856 and June 30, 2020—$905)158,099  160,671 
Costs and estimated earnings in excess of billings on uncompleted contracts37,964  59,548 
Inventories6,217  6,460 
Income taxes receivable11,443  3,919 
Other current assets7,013  4,526 
Total current assets294,487  335,160 
Property, plant and equipment at cost:   
Land and buildings41,379  42,695 
Construction equipment95,526  94,154 
Transportation equipment52,467  55,864 
Office equipment and software41,196  39,356 
Construction in progress2,217  4,427 
Total property, plant and equipment - at cost232,785  236,496 
Accumulated depreciation(160,051) (155,748)
Property, plant and equipment - net72,734  80,748 
Operating lease right-of-use assets21,109  21,375 
Goodwill60,605  60,369 
Other intangible assets, net of accumulated amortization7,181  8,837 
Deferred income taxes4,513  5,988 
Other assets11,048  4,833 
Total assets$471,677  $517,310 
    


Matrix Service Company
Condensed Consolidated Balance Sheets (continued)
(unaudited)
(In thousands, except share data)

 March 31,
2021
 June 30,
2020
Liabilities and stockholders’ equity   
Current liabilities:   
Accounts payable$50,163  $73,094 
Billings on uncompleted contracts in excess of costs and estimated earnings59,495  63,889 
Accrued wages and benefits21,983  16,205 
Accrued insurance7,437  7,301 
Operating lease liabilities5,199  7,568 
Other accrued expenses4,958  7,890 
Total current liabilities149,235  175,947 
Deferred income taxes34  61 
Operating lease liabilities20,651  19,997 
Borrowings under senior secured revolving credit facility  9,208 
Other liabilities7,897  4,208 
Total liabilities177,817  209,421 
Commitments and contingencies   
Stockholders’ equity:   
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2021 and June 30, 2020; 26,519,217 and 26,141,528 shares outstanding as of March 31, 2021 and June 30, 2020279  279 
Additional paid-in capital136,042  138,966 
Retained earnings185,901  206,402 
Accumulated other comprehensive loss(7,082) (8,373)
 315,140  337,274 
Less: Treasury stock, at cost — 1,369,000 shares as of March 31, 2021, and 1,746,689 shares as of June 30, 2020(21,280) (29,385)
Total stockholders' equity293,860  307,889 
Total liabilities and stockholders’ equity$471,677  $517,310 


Matrix Service Company
Results of Operations
(unaudited)
(In thousands)

  Three Months Ended Nine Months Ended
  March 31,
2021
 March 31,
2020
 March 31,
2021
 March 31,
2020
Gross revenue        
Utility and Power Infrastructure $44,720  $55,670  $157,414  $152,552 
Process and Industrial Facilities 43,095  76,297  141,570  375,518 
Storage and Terminal Solutions 61,542  118,711  204,572  382,720 
Total gross revenue $149,357  $250,678  $503,556  $910,790 
Less: Inter-segment revenue        
Process and Industrial Facilities $261  $1,327  $1,543  $2,788 
Storage and Terminal Solutions 836  1,024  3,514  2,901 
Total inter-segment revenue $1,097  $2,351  $5,057  $5,689 
Consolidated revenue        
Utility and Power Infrastructure $44,720  $55,670  $157,414  $152,552 
Process and Industrial Facilities 42,834  74,970  140,027  372,730 
Storage and Terminal Solutions 60,706  117,687  201,058  379,819 
Total consolidated revenue $148,260  $248,327  $498,499  $905,101 
Gross profit (loss)        
Utility and Power Infrastructure $(4,692) $3,138  $7,818  $1,744 
Process and Industrial Facilities (171) 3,070  11,352  30,498 
Storage and Terminal Solutions 6,423  14,907  12,053  52,675 
Corporate   (638)   (1,974)
Total gross profit $1,560  $20,477  $31,223  $82,943 
Selling, general and administrative expenses        
Utility and Power Infrastructure $2,356  $2,081  $7,154  $7,491 
Process and Industrial Facilities 3,882  5,343  11,319  19,666 
Storage and Terminal Solutions 4,792  6,165  13,854  19,942 
Corporate 6,149  6,129  19,704  19,475 
Total selling, general and administrative expenses $17,179  $19,718  $52,031  $66,574 
Intangible asset impairments and restructuring costs        
Utility and Power Infrastructure $403  $935  $1,226  $25,835 
Process and Industrial Facilities 781  4,087  3,645  17,702 
Storage and Terminal Solutions 590  821  1,244  821 
Corporate 86  716  470  716 
Total asset impairments and restructuring costs $1,860  $6,559  $6,585  $45,074 
Operating income (loss)        
Utility and Power Infrastructure $(7,451) $122  $(562) $(31,582)
Process and Industrial Facilities (4,834) (6,360) (3,612) (6,870)
Storage and Terminal Solutions 1,041  7,921  (3,045) 31,912 
Corporate (6,235) (7,483) (20,174) (22,165)
Total operating loss $(17,479) $(5,800) $(27,393) $(28,705)

Backlog

We define backlog as the total dollar amount of revenue that we expect to recognize as a result of performing work that has been awarded to us through a signed contract, limited notice to proceed or other type of assurance that we consider firm. The following arrangements are considered firm:

  • fixed-price awards;

  • minimum customer commitments on cost plus arrangements; and

  • certain time and material arrangements in which the estimated value is firm or can be estimated with a reasonable amount of certainty in both timing and amounts.

For long-term maintenance contracts with no minimum commitments and other established customer agreements, we include only the amounts that we expect to recognize as revenue over the next 12 months. For arrangements in which we have received a limited notice to proceed ("LNTP"), we include the entire scope of work in our backlog if we conclude that the likelihood of the full project proceeding as high. For all other arrangements, we calculate backlog as the estimated contract amount less revenue recognized as of the reporting date.

The following table provides a summary of changes in our backlog for the three months ended March 31, 2021

 Utility and Power Infrastructure Process and Industrial Facilities Storage and Terminal
Solutions
 Total
 (In thousands)
Backlog as of December 31, 2020$198,212  $157,428  $267,133  $622,773 
Project awards49,808  40,836  47,399  138,043 
Other adjustment(1)    (74,219) (74,219)
Revenue recognized(44,720) (42,834) (60,706) (148,260)
Backlog as of March 31, 2021$203,300  $155,430  $179,607  $538,337 
Book-to-bill ratio(2)1.1  1.0  0.8  0.9 


     

(1) The other adjustment in the Storage and Terminal Solutions segment was due to a customer's decision not to renew our existing LNTP for a storage tank capital project. The Company was paid for all work performed on the project and has been invited to rebid the project when the customer makes the final investment decision.
(2) Calculated by dividing project awards by revenue recognized during the period.

The following table provides a summary of changes in our backlog for the nine months ended March 31, 2021:

 Utility and Power Infrastructure Process and Industrial Facilities Storage and Terminal
Solutions
 Total
 (In thousands)
Backlog as of June 30, 2020$272,816  $145,725  $339,924  $758,465 
Project awards87,898  149,732  114,960  352,590 
Other adjustment(1)    (74,219) (74,219)
Revenue recognized(157,414) (140,027) (201,058) (498,499)
Backlog as of March 31, 2021$203,300  $155,430  $179,607  $538,337 
Book-to-bill ratio(2)0.6  1.1  0.6  0.7 


     

(1) The other adjustment in the Storage and Terminal Solutions segment was due to a customer's decision not to renew our existing LNTP for a storage tank capital project. The Company was paid for all work performed on the project and has been invited to rebid the project when the customer makes the final investment decision.
(2) Calculated by dividing project awards by revenue recognized during the period.

Non-GAAP Financial Measures

In order to more clearly depict the core profitability of the Company, the following table presents our net income (loss) and earnings (loss) per fully diluted share for the three and nine months ended March 31, 2021 and 2020 after adjusting for restructuring costs, impairments and the tax impacts of these adjustments and other net tax items:

Reconciliation of Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Common Share(1)
(In thousands, except per share data)

  Three Months Ended Nine Months Ended
  March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Net loss, as reported $(12,873) $(5,495) $(20,501) $(27,352)
Restructuring costs incurred 1,860   6,559   6,585   6,559  
Goodwill and intangible asset impairments —   —   —   38,515  
Tax impact of adjustments and other net tax items (479) (1,462) (1,695) (6,737)
Adjusted net income (loss) $(11,492) $(398) $(15,611) $10,985  
         
Loss per fully diluted share, as reported $(0.49) $(0.21) $(0.78) $(1.02)
Adjusted earnings (loss) per fully diluted share $(0.43) $(0.02) $(0.59) $0.40  


     

(1) This table presents non-GAAP financial measures of our adjusted net income (loss) and adjusted diluted earnings (loss) per common share for the three and nine months ended March 31, 2021 and 2020. The most directly comparable GAAP financial measures are net loss and diluted loss per common share, respectively, presented in the condensed consolidated statements of income. We have presented these non-GAAP financial measures because we believe they more clearly depict the core operating results of the Company during the periods presented and provide a more comparable measure of the Company's operating results to other companies considered to be in similar businesses. Since adjusted net income (loss) and adjusted diluted earnings (loss) per common share are not measures of performance calculated in accordance with GAAP, they should be considered in addition to, rather than as a substitute for, the most directly comparable GAAP financial measures.

 


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Source: Matrix Service Company