Leading technical services provider
Mistras Group, Inc.
) recently announced that its adjusted EBITDA (earnings before
interest, tax, depreciation and amortization) for fiscal year
ended May 31, 2013 is likely to be less than its expectations due
to challenging macroeconomic environments in both Europe and
Brazil, and lower gross margins in some operating segments.
However, its fiscal revenues are expected to be in sync with its
Based upon preliminary results, Mistras currently expects an
adjusted EBITDA of $68 million, well below its latest guidance
range of $75 million - $80 million. Revenues are expected to be
$529 million in fiscal 2013, representing a year-over-year
increase of 21% and near the midpoint of the guidance range of
$525 million - $535 million.
The company has attributed the sharp fall in adjusted EBITDA to a
7% decline in organic revenue in the fourth quarter in the
International segment as project activity and product shipments
were below expectations. Overall gross margin of the company
declined approximately 250 basis points due to a below-par
performance in the International and Service segments.
For fiscal 2014, Mistras anticipates adjusted EBITDA to be in the
range of $74 million to $80 million on revenues of $570 million
to $600 million. The company is likely to provide further update
on fiscal 2014 outlook when it reports its fourth quarter and
fiscal 2013 results around Aug 8.
With a broad portfolio of services and technology-enabled asset
protection solutions, Mistras helps diverse companies in the
industry to evaluate the structural integrity of energy,
industrial and public infrastructure. These enable the customers
to extend the useful life of their assets, improve productivity
and profitability, comply with government safety and
environmental regulations and enhance risk management operational
Mistras currently has a Zacks Rank #3 (Hold). Some other
companies in the industry worth reckoning include
Booz Allen Hamilton Holding Corporation
), each carrying a Zacks Rank #2 (Buy).
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