Abbi
Adest
Mistras Group (
MG
), a company which provides non-disruptive infrastructure testing
to the energy market, is expected to price its IPO this week. This
is the company's second try at an IPO. The previous attempt was
sunk by the downturn in the markets two years ago.
Business Overview (from
prospectus
)
We are a leading global provider of technology-enabled asset
protection solutions used to evaluate the structural integrity of
critical energy, industrial and public infrastructure. We combine
industry-leading products and technologies, expertise in mechanical
integrity ((
MI
)) and non-destructive testing ((
NDT
)) services and proprietary data analysis software to deliver a
comprehensive portfolio of customized solutions, ranging from
routine inspections to complex, plant-wide asset integrity
assessments and management. These mission critical solutions
enhance our customers' ability to extend the useful life of their
assets, increase productivity, minimize repair costs, comply with
governmental safety and environmental regulations, manage risk and
avoid catastrophic disasters. Given the role our services play in
ensuring the safe and efficient operation of infrastructure, we
have historically provided a majority of our services to our
customers on a regular, recurring basis. We serve a global customer
base of companies with asset-intensive infrastructure, including
companies in the oil and gas, fossil and nuclear power, public
infrastructure, chemicals, aerospace and defense, transportation,
primary metals and metalworking, pharmaceuticals and food
processing industries. As of August 1, 2009, we had approximately
2,000 employees, including 29 Ph.D.'s and more than 100 other
degreed engineers and highly-skilled, certified technicians, in 68
offices across 15 countries. We have established long-term
relationships as a critical solutions provider to many leading
companies, including American Electric Power (
AEP
), Bayer, Bechtel, BP (
BP
), Chevron (
CVX
), Dow Chemical (
DOW
), Duke Energy (
DUKE
), DuPont (
DD
), Embraer (
ERJ
), ExxonMobil (
XOM
), First Energy, General Electric (
GE
), Pfizer (
PFE
), Rio Tinto (
RTP
), Alcan, Rolls Royce (RYCEY.OB), Shell (RDS.A), The Boeing Company
and Valero (
VLO
), and to various federal, state and local governmental
infrastructure and defense authorities, including the departments
of transportation of several states.
Offering: 8.7 million shares at $14 - $16 per share. Net
proceeds of approximately $89.8 million will be used general
corporate purposes, including working capital and possible
acquisitions.
JPM
CS
BAC
Financial Highlights:
Revenues increased $56.9 million, or 37.3% [ from $152,268,000
to $209,133,000], for fiscal 2009 compared to fiscal 2008 as a
result of growth in all our segments...Our gross profit increased
$14.4 million, or 26.3% [from $54,831,000 to $69,266,000] , in
fiscal 2009 compared to fiscal 2008...Our income from operations of
$14.8 million for fiscal 2009 decreased $1.5 million, or 9.4% [from
$16,358,000 to $14,825,000], compared to fiscal 2008...Our net
income for fiscal 2009 of $5.5 million, or 2.6% of our revenues,
was $2.0 million lower than our net income for fiscal 2008, which
was $7.4 million, or 4.9% of revenues.
Competitors:
We operate in a highly competitive, but fragmented, market. Our
primary competitors are divisions of large companies, and many of
our other competitors are small companies, limited to a specific
product or technology and focused on a niche market or geographic
region. We believe that none of our competitors currently provides
the full range of asset protection and NDT products, enterprise
software and the traditional and advanced services solutions that
we offer. Our major competitors with respect to NDT services
include the Acuren division of Rockwood Service Corporation, SGS
Group, the TCM division of Team, Inc. and APPLUS RTD, which is
majority-owned by The Carlyle Group. Our major competitor with
respect to our PCMS software is UltraPIPE, a division of Siemens,
and to a lesser extent, Lloyd's Register Capstone, Inc. Our major
competitors with respect to our ultrasonic products are GE
Inspection Technologies and Olympus NDT. In the traditional NDT
market, we believe the principal competitive factors
Additional Resources:
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on seekingalpha.com