Mistras Group, Inc. (NYSE:MG) Q2 2023 Results Earnings Conference Call August 3, 2023 9:00 AM ET
Company Participants
Dennis Bertolotti - President and Chief Executive Officer
Edward Prajzner - Executive Vice President, Chief Financial Officer and Treasurer
Conference Call Participants
Mitchell Pinheiro - Sturdivant & Co.
Chris Sakai - Singular Research
Brian Russo - Sidoti & Company
Operator
Good day. And thank you for standing by. Welcome to the Mistras Group' Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Dennis Bertolotti, CEO. Please go ahead.
Dennis Bertolotti
Okay. Thank you, Brittany. And good morning, everyone. Thank you for joining us today. During the second quarter of 2023, Mistras progressed further towards our strategic efforts to streamline the organization and fine tune our strategy to unlock the inherent value of our business.
Although we continue to generate revenue growth in many of our key markets, the impact of decreased activity with one of our defense contracts offset these games at a consolidated level. Consequently, total revenue was down marginally adjusted for the effect of FX exchange.
There were several bright spots related to revenue growth drivers in the second quarter of 2023, including certain key markets which achieved record revenue performance. In particular, our West Penn acquisition, a key shop facility which specializes in aerospace projects reported a record revenue quarter.
Additionally, OnStream achieved its second best quarter revenue in its history, which performs inline inspection testing of pipelines. The OnStream growth was driven by a record quarter for its US segment, which has achieved revenue growth by over 75% for the first half of 2023 compared to that prior year period.
Within Data Solutions, our PCMS/New Century business also experienced growth in the quarter, driven by continued customer adoption of its predictive analytics.
There was also progress achieved in strengthening our financial position, with strong cash flow and a significant reduction in days sales outstanding contributing to a further reduction in our outstanding debt.
Selling, general and administrative expenses also declined sequentially, reflecting our ongoing cost controls and our objective to improve operating leverage.
In the second half of this year, we will seek additional cost savings opportunities, expanding upon what we have already implemented during the first half of 2023. As we improve operating efficiency, it will contribute to improved bottom line result. I will provide more details on these initiatives later.