What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-08 compared with 2025-02-06 · 75 added, 74 removed, 355 unchanged (30% of the section changed)

3 unchanged sentences

(In thousands, except per share data)

Three Months Ended Six Months Ended

2024 December 31,

2023 December 31,

2024 December 31,

Three Months Ended Nine Months Ended

March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024

Revenue $ 200,161 $ 166,013 $ 552,909 $ 538,714

2 unchanged sentences

Selling, general and administrative expenses 17,726 19,948 53,592 52,792

Restructuring costs 124 — 124 —

Operating loss ( 5,000 ) ( 14,370 ) ( 22,161 ) ( 24,766 )

4 unchanged sentences

Loss before income tax expense ( 3,434 ) ( 14,583 ) ( 18,174 ) ( 20,595 )

Provision for federal, state and foreign income taxes 16 6 16 6

Provision (benefit) for federal, state and foreign income taxes — ( 2 ) 16 4

Net loss $ ( 3,434 ) $ ( 14,581 ) $ ( 18,190 ) $ ( 20,599 )

8 unchanged sentences

(In thousands)

Three Months Ended Six Months Ended

2024 December 31,

2023 December 31,

2024 December 31,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 31,

2025 March 31,

Net loss $ ( 3,434 ) $ ( 14,581 ) $ ( 18,190 ) $ ( 20,599 )

Other comprehensive income (loss), net of tax:

Foreign currency translation gain (loss) ( 1,363 ) 562 ( 927 ) 24

Foreign currency translation loss ( 23 ) ( 548 ) ( 950 ) ( 524 )

Comprehensive loss $ ( 3,457 ) $ ( 15,129 ) $ ( 19,140 ) $ ( 21,123 )

41 unchanged sentences

60,000,000 shares authorized;

27,888,217 shares issued at December 31, 2024 and June 30, 2024, respectively;

27,602,825 and 27,308,795 shares outstanding as of December 31, 2024 and June 30, 2024, respectively;

27,888,217 shares issued at March 31, 2025 and June 30, 2024, respectively;

27,606,852 and 27,308,795 shares outstanding as of March 31, 2025 and June 30, 2024, respectively;

Additional paid-in capital 147,805 145,580

1 unchanged sentence

Accumulated other comprehensive loss ( 10,485 ) ( 9,535 )

Treasury stock, at cost — 285,392 and 579,422 shares as of December 31, 2024 and June 30, 2024, respectively;

Treasury stock, at cost — 281,365 and 579,422 shares as of March 31, 2025 and June 30, 2024, respectively;

( 2,640 ) ( 6,083 )

5 unchanged sentences

(In thousands)

Six Months Ended

2024 December 31,

Nine Months Ended

2025 March 31,

Operating activities:

Net loss $ ( 18,190 ) $ ( 20,599 )

Adjustments to reconcile net loss to net cash provided (used) by operating activities:

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 7,538 8,337

14 unchanged sentences

Proceeds from sale of property, plant and equipment (Note 3)

Net cash provided (used) by investing activities ( 2,696 ) 1,947

Net cash used by investing activities ( 5,188 ) ( 154 )

Financing activities:

5 unchanged sentences

Effect of exchange rate changes on cash ( 563 ) ( 243 )

Net increase (decrease) in cash and cash equivalents 41,162 ( 7,652 )

Net increase in cash and cash equivalents 69,926 14,846

Cash, cash equivalents and restricted cash, beginning of period 140,615 79,812

16 unchanged sentences

Shares Amount Shares Amount Total

September 30, 2024 27,888,217 $ 279 $ 143,765 $ 24,718 $ ( 9,099 ) 338,015 $ ( 3,146 ) $ 156,517

December 31, 2024 27,888,217 $ 279 $ 145,608 $ 19,185 $ ( 10,462 ) 285,392 $ ( 2,676 ) $ 151,934

Net loss — — — ( 3,434 ) — — — ( 3,434 )

Other comprehensive income — — — — ( 1,363 ) — — ( 1,363 )

Issuance of restricted stock — — ( 428 ) — — ( 47,946 ) 428 —

Other comprehensive loss — — — — ( 23 ) — — ( 23 )

Treasury shares sold to Employee Stock Purchase Plan — — 12 — — ( 4,027 ) 36 48

Stock-based compensation expense — — 2,185 — — — — 2,185

March 31, 2025 27,888,217 $ 279 $ 147,805 $ 15,751 $ ( 10,485 ) 281,365 $ ( 2,640 ) $ 150,710

December 31, 2023 27,888,217 $ 279 $ 140,668 $ 52,899 $ ( 8,745 ) 587,732 $ ( 6,191 ) $ 178,910

September 30, 2023 27,888,217 $ 279 $ 139,773 $ 55,750 $ ( 9,307 ) 678,379 $ ( 7,372 ) $ 179,123

Net loss — — — ( 14,581 ) — — — ( 14,581 )

Other comprehensive loss — — — — ( 548 ) — — ( 548 )

Issuance of restricted stock — — ( 1,131 ) — — ( 86,783 ) 1,131 —

Treasury shares sold to Employee Stock Purchase Plan — — ( 14 ) — — ( 4,249 ) 55 41

Stock-based compensation expense — — 1,980 — — — — 1,980

December 31, 2023 27,888,217 $ 279 $ 140,668 $ 52,899 $ ( 8,745 ) 587,732 $ ( 6,191 ) $ 178,910

March 31, 2024 27,888,217 $ 279 $ 142,634 $ 38,318 $ ( 9,293 ) 583,483 $ ( 6,136 ) $ 165,802

Common Stock Additional

6 unchanged sentences

Net loss — — — ( 18,190 ) — — — ( 18,190 )

Other comprehensive income — — — — ( 927 ) — ( 927 )

Other comprehensive loss — — — — ( 950 ) — — ( 950 )

Issuance of restricted stock — — ( 4,537 ) — — ( 408,406 ) 4,537 —

2 unchanged sentences

Stock-based compensation expense — — 6,754 — — — — 6,754

December 31, 2024 27,888,217 $ 279 $ 145,608 $ 19,185 $ ( 10,462 ) 285,392 $ ( 2,676 ) $ 151,934

March 31, 2025 27,888,217 $ 279 $ 147,805 $ 15,751 $ ( 10,485 ) 281,365 $ ( 2,640 ) $ 150,710

June 30, 2023 27,888,217 $ 279 $ 140,810 $ 58,917 $ ( 8,769 ) 840,899 $ ( 9,753 ) $ 181,484

5 unchanged sentences

Stock-based compensation expense — — 5,765 — — — — 5,765

December 31, 2023 27,888,217 $ 279 $ 140,668 $ 52,899 $ ( 8,745 ) 587,732 $ ( 6,191 ) $ 178,910

March 31, 2024 27,888,217 $ 279 $ 142,634 $ 38,318 $ ( 9,293 ) 583,483 $ ( 6,136 ) $ 165,802

Matrix Service Company

8 unchanged sentences

The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2024, included in our Annual Report on Form 10-K.

The results of operations for the three and six month periods ended December 31, 2024 may not necessarily be indicative of the results of operations for the full year ending June 30, 2025.

The results of operations for the three and nine month periods ended March 31, 2025 may not necessarily be indicative of the results of operations for the full year ending June 30, 2025.

Significant Accounting Policies

15 unchanged sentences

Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows.

Other accounting pronouncements issued but not effective until after December 31, 2024 are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

Other accounting pronouncements issued but not effective until after March 31, 2025 are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

Note 2 – Revenue

Remaining Performance Obligations

We had $ 1.0 billion of remaining performance obligations yet to be satisfied as of December 31, 2024.

We had $ 1.1 billion of remaining performance obligations yet to be satisfied as of March 31, 2025.

We expect to recognize $ 606.5 million of our remaining performance obligations as revenue within the next twelve months.

14 unchanged sentences

The difference between the beginning and ending balances of our CIE and BIE primarily results from the timing of revenue recognized relative to the billings on the associated contracts.

The amount of revenue recognized during the six months ended December 31, 2024 that was included in the June 30, 2024 BIE balance was $ 149.9 million.

Progress billings in accounts receivable at December 31, 2024 and June 30, 2024 included retentions to be collected within one year of $ 12.9 million and $ 11.6 million, respectively.

Contract retentions collectible beyond one year are included in Other assets, non-current in the Condensed Consolidated Balance Sheets and totaled $ 51.9 million as of December 31, 2024 and $ 28.6 million as of June 30, 2024, respectively.

The amount of revenue recognized during the nine months ended March 31, 2025 that was included in the June 30, 2024 BIE balance was $ 162.5 million.

Progress billings in accounts receivable at March 31, 2025 and June 30, 2024 included retentions to be collected within one year of $ 30.2 million and $ 11.6 million, respectively.

Contract retentions collectible beyond one year are included in Other assets, non-current in the Condensed Consolidated Balance Sheets and totaled $ 51.3 million as of March 31, 2025 and $ 28.6 million as of June 30, 2024, respectively.

Unpriced Change Orders and Claims

Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unpriced change orders and claims of $ 8.4 million at December 31, 2024 and $ 9.9 million at June 30, 2024.

Net contract liabilities included revenues for unpriced change orders and claims of $ 11.8 million at March 31, 2025 and $ 9.9 million at June 30, 2024.

The amounts ultimately realized may be different than the recorded amounts resulting in adjustments to future earnings.

5 unchanged sentences

Geographic Disaggregation:

Three Months Ended Six Months Ended

2024 December 31,

2023 December 31,

2024 December 31,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 31,

2025 March 31,

(In thousands)

4 unchanged sentences

Contract Type Disaggregation:

Three Months Ended Six Months Ended

2024 December 31,

2023 December 31,

2024 December 31,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 31,

2025 March 31,

(In thousands)

11 unchanged sentences

The Catoosa, Oklahoma facility was closed as it was no longer strategic to the future of the business.

There were no significant sales of property, plant and equipment in the first half of fiscal 2025.

During the third quarter of fiscal 2024, we purchased a fabrication facility in Bakersfield, California for $ 4.1 million to replace a facility being leased by the Company.

There were no individually significant purchases or sales of property, plant and equipment in the nine months ended March 31, 2025.

Note 4 – Debt

8 unchanged sentences

We are required to maintain a minimum of $ 25.0 million of restricted cash at all times, but such amounts are also included in the borrowing base.

The borrowing base is recalculated on a monthly basis and at December 31, 2024, our borrowing base was $ 59.7 million.

The Company had $ 4.8 million in letters of credit outstanding as of December 31, 2024, which resulted in availability of $ 54.9 million under the ABL Facility.

The borrowing base is recalculated on a monthly basis and at March 31, 2025, our borrowing base was $ 66.3 million.

The Company had $ 4.8 million in letters of credit outstanding as of March 31, 2025, which resulted in availability of $ 61.5 million under the ABL Facility.

Borrowings under the ABL Facility bear interest through maturity at a variable rate based upon, at our option, an annual rate of either a base rate (“Base Rate”), an Adjusted Term Secured Overnight Financing Rate ("Adjusted Term SOFR"), or at the Canadian Prime Rate, plus an applicable margin.

20 unchanged sentences

In the event that our availability is less than the greater of (i) $ 15.0 million and (ii) 15.00 % of the commitments under the ABL Facility then in effect, a consolidated Fixed Charge Coverage Ratio of at least 1.00 to 1.00 must be maintained.

We were in compliance with all covenants of the ABL Facility as of December 31, 2024.

We were in compliance with all covenants of the ABL Facility as of March 31, 2025.

Note 5 – Income Taxes

Effective Tax Rate

During the three and six months ended December 31, 2024, our effective tax rates were ( 0.3 %) and ( 0.1 )%, respectively.

During the three and six months ended December 31, 2023 our effective tax rates were zero.

The effective tax rates during fiscal 2025 were impacted by valuation allowances of $ 1.8 million and $ 3.1 million, respectively, placed on deferred tax assets

generated during the three and six months ended December 31, 2024.

The effective tax rates during fiscal 2024 were impacted by valuation allowances of $ 1.2 million and $ 1.4 million, respectively, placed on deferred tax assets during the three and six months ended December 31, 2023.

During the three and nine months ended March 31, 2025, our effective tax rates were zero and ( 0.1 )%, respectively.

During the three and nine months ended March 31, 2024 our effective tax rates were zero.

The effective tax rates during fiscal 2025 were impacted by valuation allowances of $ 1.2 million and $ 4.3 million, respectively, placed on deferred tax assets generated during the three and nine months ended March 31, 2025.

The effective tax rates during fiscal 2024 were impacted by valuation allowances of $ 4.4 million and $ 5.8 million, respectively, placed on deferred tax assets during the three and nine months ended March 31, 2024.

Valuation Allowance

We placed a valuation allowance on our deferred tax assets in fiscal 2022 due to the existence of a cumulative loss over a three-year period.

Currently, we place valuation allowances on newly generated deferred tax assets and will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided as we generate taxable income.

Currently, we place valuation allowances on newly generated deferred tax assets.

We will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided as we generate taxable income.

Note 6 – Commitments and Contingencies

15 unchanged sentences

We are actively pursuing our claims and believe we have substantial legal and contractual defenses to the customer's counterclaims.

During fiscal 2023, we completed construction services on a time and materials basis for a customer at a mining and minerals facility.

Our hearing for this matter is currently scheduled for August 2025.

During fiscal 2023, we completed construction services on a time and materials basis at a mining and minerals facility.

In late fiscal 2023, after numerous attempts to collect outstanding receivables, we filed a notice of default for lack of payment of outstanding balances, and in early fiscal 2024, we filed a lien on the facility.

3 unchanged sentences

We denied all claims and filed a countersuit against the customer for failure to pay amounts due of $ 5.6 million.

Our trial for this matter is currently scheduled for February 2026.

We believe we have set appropriate reserves based on our evaluation of the possible outcomes for the matters described above.

2 unchanged sentences

however, assessing the eventual outcome of litigation involves forward-looking speculation as to judgement being made by arbitrators, judges, juries and appellate courts in the future.

Based upon information presently available, and in light of legal and other factual defenses available to the Company, management does not believe that such other known legal actions will have a material adverse effect on our financial position, results of operations or liquidity.

upon information presently available, and in light of legal and other factual defenses available to the Company, management does not believe that such other known legal actions will have a material adverse effect on our financial position, results of operations or liquidity.

Note 7 – Earnings per Common Share

4 unchanged sentences

The computation of basic and diluted earnings per share is as follows:

Three Months Ended Six Months Ended

2024 December 31,

2023 December 31,

2024 December 31,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 31,

2025 March 31,

(In thousands, except per share data)

6 unchanged sentences

The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS:

Three Months Ended Six Months Ended

2024 December 31,

2023 December 31,

2024 December 31,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 31,

2025 March 31,

(In thousands)

10 unchanged sentences

primarily consists of engineering, procurement, fabrication, and construction services to support growing demand for LNG utility peak shaving facilities.

We also perform power delivery work for public and private utilities, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance including live wire work.

Work may also include emergency and storm restoration services.

We also perform power delivery work for public and private utilities, including construction of new substations, upgrades of existing substations, and maintenance.

We also provide construction services to a variety of power generation facilities, including natural gas fired facilities in simple or combined cycle configurations.

9 unchanged sentences

Corporate assets consist primarily of cash, restricted cash, prepaid expenses, corporate fixed assets, and corporate operating lease right-of-use assets.

Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated:

Segment Information - The following tables set forth certain selected financial information for our segments for the periods indicated:

(In thousands)

Storage and Terminal Solutions Utility and Power Infrastructure Process and Industrial Facilities Corporate Total

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025

Total revenue (1)

3 unchanged sentences

Selling, general and administrative expenses 6,344 2,536 2,142 6,704 17,726

Restructuring costs — 124 — — 124

Operating income (loss) $ ( 2,613 ) $ 2,877 $ 1,617 $ ( 6,881 ) $ ( 5,000 )

(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $0.8 million for the three months ended December 31, 2024.

(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $1.1 million for the three months ended March 31, 2025.

Storage and Terminal Solutions Utility and Power Infrastructure Process and Industrial Facilities Corporate Total

Three Months Ended December 31, 2023

Three Months Ended March 31, 2024

Total revenue (1)

4 unchanged sentences

Operating income (loss) $ ( 3,082 ) $ ( 1,324 ) $ ( 823 ) $ ( 9,141 ) $ ( 14,370 )

(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $0.9 million for the three months ended December 31, 2023.

(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $1.3 million for the three months ended March 31, 2024.

Storage and Terminal Solutions Utility and Power Infrastructure Process and Industrial Facilities Corporate Total

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Total revenue (1)

3 unchanged sentences

Selling, general and administrative expenses 17,480 10,073 5,585 20,454 53,592

Restructuring costs — 124 — — 124

Operating income (loss) $ ( 1,780 ) $ 56 $ 541 $ ( 20,978 ) $ ( 22,161 )

(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $1.7 million for the six months ended December 31, 2024.

(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $2.8 million for the nine months ended March 31, 2025.

Storage and Terminal Solutions Utility and Power Infrastructure Process and Industrial Facilities Corporate Total

Six Months Ended December 31, 2023

Nine Months Ended March 31, 2024

Total revenue (1)

4 unchanged sentences

Operating income (loss) $ ( 5,258 ) $ 261 $ 5,632 $ ( 25,401 ) $ ( 24,766 )

(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $1.8 million for the six months ended December 31, 2023.

(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $3.1 million for the nine months ended March 31, 2024.

Total assets by segment

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

Storage and Terminal Solutions $ 212,867 $ 138,529

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements