Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our common stock trades on the NASDAQ Global Select Market under the trading symbol "MTRX". Substantially all of our stockholders maintain their shares in "street name" accounts and are not individually stockholders of record. As of July 31, 2020, there were 19 holders of record of our common stock.
Dividend Policy
We have never paid cash dividends on our common stock, and the terms of our Credit Agreement (see Item 8. Financial Statements and Supplementary Data, Note 5 - Debt for more information about our Credit Agreement) limit the amount of cash dividends we can pay. Under our Credit Agreement, we may declare and pay cash dividends on our capital stock during any fiscal year up to an amount which, when added to all other cash dividends paid during such fiscal year, does not exceed 50% of our cumulative net income for such fiscal year to date. While we currently do not intend to pay cash dividends, any future dividend payments will depend on our financial condition, capital requirements and earnings as well as other relevant factors.
Issuer Purchases of Equity Securities
Our Credit Agreement limits the Company's purchases of its equity securities to $30.0 million in any calendar year. The table below sets forth the information with respect to purchases made by the Company of its common stock during the fourth quarter of the fiscal year ended June 30, 2020:
Total Number
of Shares
Purchased Average Price
Paid
Per Share Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs Maximum Number of
Shares That May Yet
Be Purchased
Under the Plans
or Programs (C)
April 1 to April 30, 2020
Share Repurchase Program (A)
— — — 1,349,037
Employee Transactions (B)
— — —
May 1 to May 31, 2020
Share Repurchase Program (A)
— — — 1,349,037
Employee Transactions (B)
— — —
June 1 to June 30, 2020
Share Repurchase Program (A)
— — — 1,349,037
Employee Transactions (B)
733 9.26 —
(A) Represents shares purchased under our stock buyback program.
(B) Represents shares withheld to satisfy the employee’s tax withholding obligation that is incurred upon the vesting of deferred shares granted under the Company’s stock incentive plans.
(C) On November 6, 2018, the Board of Directors approved a new stock buyback program (the “November 2018 Program”), which replaced the December 2016 Program. Under the November 2018 Program, the Company may repurchase common stock of the Company up to a maximum of $30.0 million per calendar year provided that the aggregate number of shares repurchased may not exceed 10%, or approximately 2.7 million, of the Company's shares outstanding as of November 6, 2018. The November 2018 Program will continue unless and until it is modified or revoked by the Board of Directors.
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Performance Graph
The following Performance Graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that we specifically incorporate it by reference into such filing.
The following graph compares, for the period from June 30, 2015 to June 30, 2020, the cumulative stockholder return on our common stock with the cumulative total return of the NASDAQ Composite Index and the S&P Construction & Engineering Index. The graph below assumes an investment of $100 (with reinvestment of all dividends) in our common stock, the NASDAQ Composite Index and the S&P Construction & Engineering Index on June 30, 2015 and tracks their relative performance through June 30, 2020. The stock price performance reflected in the following graph is not necessarily indicative of future stock performance.
June 30,
2015 2016 2017 2018 2019 2020
Matrix Service Company $ 100.00 $ 90.21 $ 51.15 $ 100.38 $ 110.83 $ 53.17
NASDAQ Composite $ 100.00 $ 98.32 $ 126.14 $ 155.91 $ 168.04 $ 213.32
S&P Construction & Engineering $ 100.00 $ 97.70 $ 107.80 $ 118.42 $ 123.78 $ 125.74
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Item 6. Selected Financial Data
Selected Financial Data
(In thousands, except percentages and per share data)
Fiscal Years Ended
June 30,
2020 June 30,
2019 June 30,
2018 June 30,
2017 June 30,
2016
Revenue $ 1,100,938 $ 1,416,680 $ 1,091,553 $ 1,197,509 $ 1,311,917
Cost of revenue 998,762 1,284,729 999,617 1,116,506 1,185,926
Gross profit 102,176 131,951 91,936 81,003 125,991
Gross margin % 9.3 % 9.3 % 8.4 % 6.8 % 9.6 %
Selling, general and administrative expenses 86,276 94,021 84,417 76,144 85,109
Selling, general and administrative % 7.8 % 6.6 % 7.7 % 6.4 % 6.5 %
Intangible asset impairments and restructuring costs 52,525 — 17,998 — —
Operating income (loss) (36,625) 37,930 (10,479) 4,859 40,882
Operating income (loss) % (3.3) % 2.7 % (1.0) % 0.4 % 3.1 %
Net income (loss) (33,074) 27,982 (11,480) 138 25,537
Net income (loss) attributable to noncontrolling interest — — — 321 (3,326)
Net income (loss) attributable to Matrix Service Company (33,074) 27,982 (11,480) (183) 28,863
Earnings (loss) per share-basic (1.24) 1.04 (0.43) (0.01) 1.09
Earnings (loss) per share-diluted (1.24) 1.01 (0.43) (0.01) 1.07
Working capital 159,213 141,811 118,581 139,654 129,416
Total assets 517,310 633,394 558,033 586,030 564,967
Long-term debt 9,208 5,347 — 44,682 —
Capital expenditures 18,539 19,558 8,711 11,908 13,939
Cash flows provided (used) by operations 44,085 41,394 74,671 (18,746) 33,587
Backlog 758,465 1,098,349 1,218,596 682,273 868,672
Refer to the Results of Operations section included in Item 7 of this Annual Report on Form 10-K for a discussion of the operating results for the fiscal year ended 2020 in comparison to the fiscal year ended 2019.