Mistras Group, Inc. (NYSE:MG) Q2 2024 Earnings Conference Call August 1, 2024 9:00 AM ET

Company Participants

Manuel Stamatakis - Interim Chief Executive Officer
Edward Prajzner - Chief Financial Officer

Conference Call Participants

Mitchell Pinheiro - Sturdivant & Co. Inc.
Christopher Sakai - Singular Research
John Franzreb - Sidoti & Company, LLC

Operator

Thank you for joining Mistras Group’s Conference Call for its Second Quarter Ended June 30, 2024. My name is Brianna, and I’ll be your event manager today. We’ll be accepting questions after management’s prepared remarks. Participating on the call for Mistras will be Manny Stamatakis, the company’s Chairman of the Board, an Interim President and Chief Executive Officer; and Ed Prajzner, Senior Executive Vice President and Chief Financial Officer.

I want to remind everyone that remarks made during this conference call will include forward-looking statements. The company’s actual results could differ materially from those projected. Some of those factors that can cause actual results to differ are discussed in the company’s most recent annual report on Form 10-K and other reports filed with the SEC.

The discussion in this conference call will also include certain financial measures that were not prepared in accordance with the U.S. GAAP. Reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures can be found in the tables contained in yesterday’s press release and in the company’s related current report on Form 8-K. These reports are available at the company’s website in the Investors section on the SEC’s website.

I will now turn the conference over to Manny Stamatakis.

Manuel Stamatakis

Good morning, everyone. Thank you for joining us today. Mistras reported strong top- and bottom-line growth for the 3rd consecutive quarter and remains on pace for fiscal 2024 adjusted EBITDA that will be one of our all-time high performances years. This coincides with the formal implementation of the initiatives identified by Project Phoenix, which continues to guide us forward. Results continue to reflect the improved discipline and the overall benefits of our key financial, operational, and strategic initiatives with the goal of continuing to improve overall profitability.

Consequently, you can understand why I am very pleased with the significant improvement in our operating leverage, which enabled us to increase the adjusted EBITDA by nearly 45%, on revenue that was up nearly 8% in the second quarter. Adjusted EBITDA growth this quarter is sequentially in line with the first quarter and demonstrates the consistency and predictability of our performance, which we believe is a key to creating shareholder value.