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, 2021, there were 20 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 limit dividends to stock dividends only (see Item 8. Financial Statements and Supplementary Data, Note 5 - Debt for more information about our Credit Agreement). Any future dividend payments will depend on the terms of our Credit Agreement, our financial condition, capital requirements and earnings as well as other relevant factors.
Issuer Purchases of Equity Securities
The terms of our Credit Agreement limit share repurchases to $2.5 million per fiscal year provided that that we do not violate our Fixed Charge Coverage Ratio financial covenant. We may repurchase common stock pursuant to the Stock Buyback Program, which was approved by the board of directors in November 2018. Under the program, the aggregate number of shares repurchased may not exceed 2,707,175 shares. We may repurchase our stock from time to time in the open market at prevailing market prices or in privately negotiated transactions and are not obligated to purchase any shares. The program will continue unless and until it is modified or revoked by the Board of Directors. We made no repurchases under the program in the fourth quarter of fiscal 2021 and have no current plans to repurchase stock in the near-term. As of June 30, 2021, there were 1,349,037 shares available for purchase under the Stock Buyback Program.
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, 2016 to June 30, 2021, the cumulative stockholder return on our common stock with the cumulative total return of the NASDAQ Composite Index, the Dow Jones U.S. Heavy Construction Index, and the S&P Construction & Engineering Index. We intend to replace the S&P Construction & Engineering Index with the Dow Jones U.S. Heavy Construction Index beginning in fiscal 2022 to be more consistent with the indexes to which our peers compare themselves.
The graph below assumes an investment of $100 (with reinvestment of all dividends) in our common stock, the NASDAQ Composite Index, the Dow Jones U.S. Heavy Construction Index, and the S&P Construction & Engineering Index on June 30, 2016 and tracks their relative performance through June 30, 2021. The stock price performance reflected in the following graph is not necessarily indicative of future stock performance.
24
Table of Contents
June 30,
2016 2017 2018 2019 2020 2021
Matrix Service Company $ 100.00 $ 56.70 $ 111.28 $ 122.86 $ 58.94 $ 63.67
NASDAQ Composite $ 100.00 $ 128.30 $ 158.57 $ 170.91 $ 216.96 $ 315.10
S&P Construction & Engineering $ 100.00 $ 110.34 $ 121.21 $ 126.69 $ 128.70 $ 225.71
Dow Jones US Heavy Construction $ 100.00 $ 106.22 $ 114.10 $ 120.55 $ 104.68 $ 190.54
25
Table of Contents
Item 6. Selected Financial Data
Selected Financial Data
(In thousands, except percentages and per share data)
Fiscal Years Ended
June 30,
2021 June 30,
2020 June 30,
2019 June 30,
2018 June 30,
2017
Revenue $ 673,398 $ 1,100,938 $ 1,416,680 $ 1,091,553 $ 1,197,509
Cost of revenue 640,633 998,762 1,284,729 999,617 1,116,506
Gross profit 32,765 102,176 131,951 91,936 81,003
Gross margin % 4.9 % 9.3 % 9.3 % 8.4 % 6.8 %
Selling, general and administrative expenses 69,756 86,276 94,021 84,417 76,144
Selling, general and administrative % 10.4 % 7.8 % 6.6 % 7.7 % 6.4 %
Intangible asset impairments and restructuring costs 6,756 52,525 — 17,998 —
Operating income (loss) (43,747) (36,625) 37,930 (10,479) 4,859
Operating income (loss) % (6.5) % (3.3) % 2.7 % (1.0) % 0.4 %
Net income (loss) attributable to Matrix Service Company (31,224) (33,074) 27,982 (11,480) (183)
Earnings (loss) per share-basic (1.18) (1.24) 1.04 (0.43) (0.01)
Earnings (loss) per share-diluted (1.18) (1.24) 1.01 (0.43) (0.01)
Working capital 137,817 159,213 141,811 118,581 139,654
Total assets 467,556 517,310 633,394 558,033 586,030
Long-term debt — 9,208 5,347 — 44,682
Capital expenditures 4,354 18,539 19,558 8,711 11,908
Cash flows provided (used) by operations (2,971) 44,085 41,394 74,671 (18,746)
Backlog 462,561 758,465 1,098,349 1,218,596 682,273
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 2021 in comparison to the fiscal year ended 2020.