Mistras (MG) 10-Q 9 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
Document and Entity Information
Entity Registrant Name	Mistras Group, Inc.
Entity Central Index Key	1,436,126
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,488,288
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 27,592	$ 19,154
Accounts receivable, net	124,221	130,852
Inventories	10,589	10,017
Deferred income taxes	0	6,230
Prepaid expenses and other current assets	14,772	16,399
Total current assets	177,174	182,652
Property, plant and equipment, net	72,898	73,149
Intangible assets, net	41,226	40,007
Goodwill	173,907	169,940
Deferred income taxes	1,897	1,086
Other assets	2,628	2,593
Total assets	469,730	469,427
Current Liabilities
Accounts payable	9,345	6,805
Accrued expenses and other current liabilities	53,637	58,697
Current portion of long-term debt	1,766	1,379
Current portion of capital lease obligations	6,357	6,488
Income taxes payable	3,659	4,342
Total current liabilities	74,764	77,711
Long-term debt, net of current portion	96,042	85,917
Obligations under capital leases, net of current portion	8,861	9,682
Deferred income taxes	12,024	17,584
Other long-term liabilities	8,180	7,789
Total liabilities	199,871	198,683
Commitments and contingencies
Equity
Preferred stock, 10,000,000 shares authorized	0	0
Common stock, $0.01 par value, 200,000,000 shares authorized, 29,257,763 and 29,216,745 shares issued	293	292
Additional paid-in capital	219,176	217,211
Treasury stock, at cost, 676,512 and 420,258 shares	(15,000)	(9,000)
Retained earnings	93,496	91,803
Accumulated other comprehensive loss	(28,274)	(29,724)
Total Mistras Group, Inc. stockholders’ equity	269,691	270,582
Noncontrolling interests	168	162
Total equity	269,859	270,744
Total liabilities and equity	$ 469,730	$ 469,427

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	29,257,763	29,216,745
Treasury stock (in shares)	676,512	420,258

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue	$ 163,318	$ 167,455
Cost of revenue	115,002	118,230
Depreciation	5,163	5,255
Gross profit	43,153	43,970
Selling, general and administrative expenses	37,302	35,053
Research and engineering	643	662
Depreciation and amortization	2,502	2,762
Acquisition-related expense (benefit), net	(544)	(153)
Income from operations	3,250	5,646
Interest expense	1,018	1,100
Income before provision for income taxes	2,232	4,546
Provision for income taxes	534	1,088
Net income	1,698	3,458
Less: net income attributable to noncontrolling interests, net of taxes	6	11
Net income attributable to Mistras Group, Inc.	$ 1,692	$ 3,447
Earnings per common share
Basic (in dollars per share)	$ 0.06	$ 0.12
Diluted (in dollars per share)	$ 0.06	$ 0.11
Weighted average common shares outstanding:
Basic (in shares)	28,687	28,915
Diluted (in shares)	29,905	29,980

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,698	$ 3,458
Other comprehensive income:
Foreign currency translation adjustments	1,450	2,387
Comprehensive income	3,148	5,845
Less: comprehensive income attributable to noncontrolling interest	6	9
Comprehensive income attributable to Mistras Group, Inc.	$ 3,142	$ 5,836

Unaudited Condensed Consolidat6

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net income	$ 1,698	$ 3,458
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	7,665	8,017
Deferred income taxes	(86)	1,037
Share-based compensation expense	1,724	1,729
Bad debt provision for a customer bankruptcy	1,200	0
Fair value adjustments to contingent consideration	(625)	(132)
Other	(147)	(200)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	6,161	12,133
Inventories	(585)	315
Prepaid expenses and other assets	1,716	(85)
Accounts payable	2,478	160
Accrued expenses and other liabilities	(7,053)	2,435
Income taxes payable	(733)	246
Net cash provided by operating activities	13,413	29,113
Cash flows from investing activities
Purchase of property, plant and equipment	(3,416)	(3,735)
Purchase of intangible assets	(376)	(422)
Acquisition of businesses, net of cash acquired	(4,500)	0
Proceeds from sale of equipment	155	48
Net cash used in investing activities	(8,137)	(4,109)
Cash flows from financing activities
Repayment of capital lease obligations	(1,643)	(1,894)
Proceeds from borrowings of long-term debt	917	225
Repayment of long-term debt	(663)	(1,105)
Proceeds from revolver	20,900	5,400
Repayment of revolver	(10,800)	(20,200)
Payment of contingent consideration for business acquisitions	(51)	(1,530)
Purchases of treasury stock	(6,000)	0
Taxes paid related to net share settlement of share-based awards	(41)	(33)
Excess tax benefit from share-based compensation	0	58
Proceeds from exercise of stock options	234	191
Net cash provided by (used in) financing activities	2,853	(18,888)
Effect of exchange rate changes on cash and cash equivalents	309	(89)
Net change in cash and cash equivalents	8,438	6,027
Cash and cash equivalents
Beginning of period	19,154	9,599
End of period	27,592	15,626
Supplemental disclosure of cash paid
Interest	967	904
Income taxes	1,057	1,644
Noncash investing and financing
Equipment acquired through capital lease obligations	$ 667	$ 2,267

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Description of Business Mistras Group, Inc. and subsidiaries ("the Company") is a leading “one source” global provider of technology-enabled asset protection solutions used to evaluate the structural integrity and reliability of critical energy, industrial and public infrastructure. The Company combines industry-leading products and technologies, expertise in mechanical integrity (MI) and non-destructive testing (NDT) services and proprietary data analysis software to deliver a comprehensive portfolio of customized solutions, ranging from routine inspections to complex, plant-wide asset integrity assessments and management. These mission critical solutions enhance customers’ ability to extend the useful life of their assets, increase productivity, minimize repair costs, comply with governmental safety and environmental regulations, manage risk and avoid catastrophic disasters. The Company serves a global customer base of companies with asset-intensive infrastructure, including companies in the oil and gas, fossil and nuclear power, alternative and renewable energy, public infrastructure, chemicals, commercial aerospace and defense, transportation, primary metals and metalworking, pharmaceutical/biotechnology and food processing industries and research and engineering institutions. Basis of Presentation The condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods of the fiscal years ending December 31, 2017 and 2016 . Certain items included in these statements are based on management’s estimates. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements contained in the Company’s Transition Report on Form 10-K (“2016 Transition Report”) for the transition period ended December 31, 2016 , as filed with the Securities and Exchange Commission on March 20, 2017 . Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Mistras Group, Inc. and its wholly and majority-owned subsidiaries. For subsidiaries in which the Company’s ownership interest is less than 100%, the noncontrolling interests are reported in stockholders’ equity in the accompanying condensed consolidated balance sheets. The noncontrolling interests in net income, net of tax, is classified separately in the accompanying condensed consolidated statements of income. All significant intercompany accounts and transactions have been eliminated in consolidation. On January 3, 2017, the Company's Board of Directors approved a change in the Company's fiscal year end from May 31 to December 31, effective December 31, 2016. The transition period was for the seven months ended December 31, 2016 ("the transition period"). Prior to this change, the Company's International segment was consolidated on a one month lag. Therefore, for this interim report, the condensed consolidated income statement includes a one month lag for the International segment for the three months ended March 31, 2016. Management does not believe that any events occurred during the one-month lag period that would have a material effect on the Company’s condensed consolidated financial statements. The one month lag was removed with the change in the Company's fiscal year noted above, and accordingly, the condensed consolidated income statement does not include a one month lag for the International segment's results for the three months ended March 31, 2017. Reclassification Certain amounts in prior periods have been reclassified to conform to the current year presentation. Such reclassifications did not have a material effect on the Company's financial condition or results of operations as previously reported. Customers One customer accounted for approximately 11% of our revenues and 9% of accounts receivable in the first quarter of 2017, which primarily were generated from the Services segment. One customer accounted for 10% of our revenues in the first quarter of 2016. Significant Accounting Policies The Company’s significant accounting policies are disclosed in Note 2 — Summary of Significant Accounting Policies in the Company's 2016 Transition Report. On an ongoing basis, the Company evaluates its estimates and assumptions, including, among other things those related to revenue recognition, valuations of accounts receivable, long-lived assets, goodwill, deferred tax assets and uncertain tax positions. Since the date of the 2016 Transition Report, there have been no material changes to the Company's significant accounting policies. Recent Accounting Pronouncements In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for all entities by one year. This update is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. ASU 2014-09 will become effective for us beginning 2018, which is when we plan to adopt this standard. The ASU permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The ASU also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. We are still in the process of evaluating the effect of adoption on our condensed consolidated financial statements and are currently assessing our contracts with customers. We anticipate we will expand our condensed consolidated financial statement disclosures in order to comply with ASU 2014-09. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This amendment will simplify the presentation of deferred tax assets and liabilities on the balance sheet and require all deferred tax assets and liabilities to be treated as non-current. ASU 2015-17 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance prospectively beginning in the first quarter of 2017, which did not have a material impact on the condensed consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This amendment supersedes previous accounting guidance ( Topic 840) and requires all leases, with exception of leases with a term of 12 months or less, to be recorded on the balance sheet as lease assets and lease liabilities. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2018, with early adoption permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the effect that ASU 2016-02 will have on its condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718). This amendment will simplify certain aspects of accounting for share-based payment transactions, which include accounting for income taxes and the related impact on the statement of cash flows, an option to account for forfeitures when they occur in addition to the existing guidance to estimate the forfeitures of awards, classification of awards as either equity or liabilities and classification on the statement of cash flows for employee taxes paid to tax authorities on shares withheld for vesting. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2016, with early adoption permitted. The Company prospectively adopted this guidance beginning in the first quarter of 2017, and accordingly, is recording excess tax benefits and tax deficiencies as a component of income tax expense. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). This amendment will provide guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact that ASU 2016-15 will have on its condensed consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230). This amendment will clarify the presentation of restricted cash on the statement of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning and ending cash balances on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect that ASU 2016-18 will have a material impact on its condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). This amendment eliminates Step Two of the goodwill impairment test. Under the amendments in this update, entities should perform the annual goodwill impairment test by comparing the carrying value of its reporting units to their fair value. An entity should record an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Tax deductibility of goodwill should be considered in evaluating any reporting unit's impairment loss to be taken. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact that ASU 2017-04 will have on its condensed consolidated financial statements and related disclosures.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation The Company has share-based incentive awards outstanding to its eligible employees and non-employee directors under three equity incentive plans: (i) the 2007 Stock Option Plan (the 2007 Plan), (ii) the 2009 Long-Term Incentive Plan (the 2009 Plan) and (iii) the 2016 Long-Term Incentive Plan. No further awards may be granted under the 2007 and 2009 Plans, although awards granted under the 2007 and 2009 Plans remain outstanding in accordance with their terms. Awards granted under the 2016 Plan may be in the form of stock options, restricted stock units and other forms of share-based incentives, including performance restricted stock units, stock appreciation rights and deferred stock rights. Stock Options For the three months ended March 31, 2017 , the Company did no t recognize any share-based compensation expense related to stock option awards. No unrecognized compensation costs remained related to stock option awards as of March 31, 2017 . For the three months ended March 31, 2016 , the Company recognized share-based compensation expense related to stock option awards of less than $0.1 million . No stock options were granted during the three months ended March 31, 2017 and March 31, 2016 . A summary of the stock option activity, weighted average exercise prices and options outstanding as of March 31, 2017 and 2016 is as follows: For the three months ended March 31, 2017 2016 Common Stock Options Weighted Average Exercise Price Common Stock Options Weighted Average Exercise Price Outstanding at beginning of period: 2,167 $ 13.33 2,265 $ 13.16 Granted — $ — — $ — Exercised (30 ) $ 7.67 (19 ) $ 10.02 Expired or forfeited — $ — — $ — Outstanding at end of period: 2,137 $ 13.41 2,246 $ 13.19 Restricted Stock Unit Awards For both the three months ended March 31, 2017 and March 31, 2016 , the Company recognized share-based compensation expense related to restricted stock unit awards of $1.1 million . As of March 31, 2017 , there was $8.3 million of unrecognized compensation costs, net of estimated forfeitures, related to restricted stock unit awards, which are expected to be recognized over a remaining weighted average period of 2.5 years . During the first three months of 2017 and 2016 , the Company granted approximately 9,000 and 12,000 shares, respectively, of fully-vested common stock to its five non-employee directors, in connection with its non-employee director compensation plan. These shares had grant date fair values of $0.2 million and $0.3 million , respectively, which was recorded as share-based compensation expense during the three months ended March 31, 2017 and March 31, 2016 , respectively. During the first three months of 2017 and 2016 , approximately 5,000 restricted stock units vested for each period. The fair value of these units was $0.1 million for each respective period. Upon vesting, restricted stock units are generally net share-settled to cover the required minimum withholding tax and the remaining amount is converted into an equivalent number of shares of common stock. A summary of the Company's outstanding, nonvested restricted share units is presented below: For the three months ended March 31, 2017 2016 Units Weighted Units Weighted Outstanding at beginning of period: 569 $ 20.81 595 $ 18.89 Granted — $ — 1 $ 23.11 Released (5 ) $ 24.09 (5 ) $ 24.12 Forfeited (3 ) $ 21.31 (9 ) $ 19.28 Outstanding at end of period: 561 $ 20.78 582 $ 18.85 Performance Restricted Stock Units The Company maintains Performance Restricted Stock Units (PRSUs) that have been granted to select executives and senior officers whose ultimate payout is based on the Company’s performance over a one -year period based on three metrics, as defined: (1) Operating Income, (2) Adjusted EBITDAS and (3) Revenue. There is a discretionary portion of the PRSUs based on individual performance, at the discretion of the Compensation Committee (Discretionary PRSUs). PRSUs and Discretionary PRSUs generally vest ratably on each of the first four anniversary dates upon completion of the performance period, for a total requisite service period of up to five years and have no dividend rights. PRSUs are equity-classified and compensation costs are initially measured using the fair value of the underlying stock at the date of grant, assuming that the target performance conditions will be achieved. Compensation costs related to the PRSUs are subsequently adjusted for changes in the expected outcomes of the performance conditions. Discretionary PRSUs are liability-classified and adjusted to fair value (with a corresponding adjustment to compensation expense) based upon the targeted number of shares to be awarded and the fair value of the underlying stock each reporting period until approved by the Compensation Committee, at which point they are classified as equity. A summary of the Company's Performance Restricted Stock Unit activity is presented below: For the three months ended March 31, 2017 Units Weighted Outstanding at beginning of period: 290 $ 16.01 Granted — $ — Performance condition adjustments (3 ) $ 23.30 Released — $ — Forfeited — $ — Outstanding at end of period: 287 $ 15.83 During the three months ended March 31, 2017 , the Compensation Committee modified the awards issued during the transition period ended December 31, 2016 from a one year performance period to a seven month performance period to align the awards with the change in the Company's fiscal year from May 31 to December 31. Accordingly, for the three months ended March 31, 2017, the Compensation Committee approved these transition period PRSU's, which resulted in a reduction of approximately 3,000 units. As of March 31, 2017, all PRSU's were classified as equity. For each of the three months ended March 31, 2017 and March 31, 2016 , the Company recognized aggregate share-based compensation expense related to the awards described above of approximately $ 0.4 million . At March 31, 2017 , there was $2.3 million of total unrecognized compensation costs related to 287,000 non-vested performance restricted stock units, which are expected to be recognized over a remaining weighted average period of 1.8 years .

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, and (2) the dilutive effect of assumed conversion of equity awards using the treasury stock method. With respect to the number of weighted-average shares outstanding (denominator), diluted shares reflects: (i) the exercise of options to acquire common stock to the extent that the options’ exercise prices are less than the average market price of common shares during the period and (ii) the pro forma vesting of restricted stock units. The following table sets forth the computations of basic and diluted earnings per share: Three months ended March 31, 2017 March 31, 2016 Basic earnings per share Numerator: Net income attributable to Mistras Group, Inc. $ 1,692 $ 3,447 Denominator: Weighted average common shares outstanding 28,687 28,915 Basic earnings per share $ 0.06 $ 0.12 Diluted earnings per share: Numerator: Net income attributable to Mistras Group, Inc. $ 1,692 $ 3,447 Denominator: Weighted average common shares outstanding 28,687 28,915 Dilutive effect of stock options outstanding 879 777 Dilutive effect of restricted stock units outstanding 339 288 29,905 29,980 Diluted earnings per share $ 0.06 $ 0.11

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions During the three months ended March 31, 2017, the Company completed one acquisition of a company located in the U.S. that provides NDT, chemical and special processing services. In this acquisition, the Company acquired assets of the acquiree in exchange for aggregate consideration of $4.5 million in cash, and contingent consideration up to $3.5 million to be earned based upon the acquired business achieving specific performance metrics over the initial three years of operations from the acquisition date. The Company accounted for this transaction in accordance with the acquisition method of accounting for business combinations. The Company is continuing its review of the fair value estimate of assets acquired and liabilities assumed for three entities acquired in the transition period ended December 31, 2016. This process will conclude as soon as the Company finalizes information regarding facts and circumstances that existed as of the acquisition date. Goodwill and intangibles for these three entities totaled $4.1 million and $3.4 million , respectively. This measurement period will not exceed one year from their respective acquisition dates. The assets and liabilities of the business acquired in 2017 were included in the Company's condensed consolidated balance sheet based upon their estimated fair value on the date of acquisition as determined in a preliminary purchase price allocation, using available information and making assumptions management believes are reasonable. The Company is still in the process of completing its valuation of the assets, both tangible and intangible acquired. The results of operations for this acquisition are included in the Services segment's results from the date of acquisition. The goodwill of $3.3 million primarily relates to expected synergies and assembled workforce and is generally deductible for tax purposes. The Company's preliminary purchase price allocations are included in the table below, summarizing the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition: 2017 Number of Entities 1 Consideration transferred: Cash paid $ 4,500 Notes payable — Contingent consideration 2,508 Consideration transferred $ 7,008 Current assets $ — Property, plant and equipment 845 Intangible assets 2,742 Goodwill 3,326 Current liabilities — Long-term deferred tax asset 95 Net assets acquired $ 7,008 Revenues and operating income included in the condensed consolidated statement of operations for 2017 from this acquisition for the period subsequent to the closing of this transaction was approximately $0.3 million and $0.1 million , respectively. As this acquisition was immaterial to the Company's 2017 results, no unaudited pro forma financial information has been included in this report. During the three months ended March 31, 2016, the Company did no t complete any acquisitions. Acquisition-Related Expense In the course of its acquisition activities, the Company incurs costs in connection with due diligence, professional fees, and other expenses. Additionally, the Company adjusts the fair value of acquisition-related contingent consideration liabilities on a quarterly basis. These amounts are recorded as acquisition-related (benefit) expense, net, on the condensed consolidated statements of income and were as follows for the three months ended March 31, 2017 and 2016 : Three months ended March 31, 2017 2016 Due diligence, professional fees and other transaction costs $ 81 $ 103 Adjustments to fair value of contingent consideration liabilities (625 ) (256 ) Acquisition-related expense (benefit), net $ (544 ) $ (153 )

Accounts Receivable, net

Accounts Receivable, net	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Accounts Receivable, net	Accounts Receivable, net Accounts receivable consisted of the following: March 31, 2017 December 31, 2016 Trade accounts receivable $ 128,056 $ 133,704 Allowance for doubtful accounts (3,835 ) (2,852 ) Accounts receivable, net $ 124,221 $ 130,852

Property, Plant and Equipment,

Property, Plant and Equipment, net	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, Plant and Equipment, net Property, plant and equipment consisted of the following: Useful Life (Years) March 31, 2017 December 31, 2016 Land $ 1,717 $ 1,714 Buildings and improvements 30-40 19,896 19,261 Office furniture and equipment 5-8 12,850 12,574 Machinery and equipment 5-7 170,544 166,423 205,007 199,972 Accumulated depreciation and amortization (132,109 ) (126,823 ) Property, plant and equipment, net $ 72,898 $ 73,149 Depreciation expense for the three months ended March 31, 2017 and March 31, 2016 was $5.5 million and $5.6 million , respectively.

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Changes in the carrying amount of goodwill by segment is shown below: Services International Products and Systems Total Balance at December 31, 2016 $ 123,392 $ 33,351 $ 13,197 $ 169,940 Goodwill acquired during the period 3,326 — — 3,326 Adjustments to preliminary purchase price allocations — — — — Foreign currency translation 111 530 — 641 Balance at March 31, 2017 $ 126,829 $ 33,881 $ 13,197 $ 173,907 The Company reviews goodwill for impairment on a reporting unit basis on October 1 of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. As of March 31, 2017 , the Company did not identify any changes in circumstances that would indicate the carrying value of goodwill may not be recoverable. The Company's cumulative goodwill impairment as of March 31, 2017 and December 31, 2016 was $9.9 million , which is within its International segment.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets	Intangible Assets The gross amount, accumulated amortization and net carrying amount of intangible assets were as follows: March 31, 2017 December 31, 2016 Useful Life (Years) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Customer relationships 5-12 $ 84,218 $ (52,046 ) $ 32,172 $ 81,559 $ (50,417 ) $ 31,142 Software/Technology 3-15 18,525 (12,942 ) 5,583 18,128 (12,577 ) 5,551 Covenants not to compete 2-5 11,540 (9,823 ) 1,717 11,143 (9,647 ) 1,496 Other 2-5 7,415 (5,661 ) 1,754 7,266 (5,448 ) 1,818 Total $ 121,698 $ (80,472 ) $ 41,226 $ 118,096 $ (78,089 ) $ 40,007 Amortization expense for the three months ended March 31, 2017 and March 31, 2016 was $2.2 million and $2.4 million , respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: March 31, 2017 December 31, 2016 Accrued salaries, wages and related employee benefits $ 23,932 $ 23,442 Contingent consideration, current portion 3,044 1,826 Accrued workers’ compensation and health benefits 5,385 6,351 Deferred revenue 4,740 3,743 Legal settlement accrual — 6,320 Other accrued expenses 16,536 17,015 Total accrued expenses and other liabilities $ 53,637 $ 58,697

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following: March 31, 2017 December 31, 2016 Senior credit facility $ 92,966 $ 82,776 Notes payable 323 320 Other 4,519 4,200 Total debt 97,808 87,296 Less: Current portion (1,766 ) (1,379 ) Long-term debt, net of current portion $ 96,042 $ 85,917 Senior Credit Facility On October 31, 2014, the Company entered into a Third Amendment and Modification Agreement of its revolving line of credit, the Third Amended and Restated Credit Agreement (“Credit Agreement”), dated December 21, 2011, with its lending group. The Credit Agreement provides the Company with a $175.0 million revolving line of credit, which, under certain circumstances, the line of credit can be increased to $225.0 million . The Company may borrow up to $30.0 million in non-U.S. Dollar currencies and use up to $10.0 million of the credit limit for the issuance of letters of credit. The Credit Agreement has a maturity date of October 30, 2019. As of March 31, 2017 , the Company had borrowings of $93.0 million and a total of $5.7 million of letters of credit outstanding under the Credit Agreement. Loans under the Credit Agreement bear interest at LIBOR plus an applicable LIBOR margin ranging from 1% to 1.75% , or a base rate less a margin of 1.25% to 0.375% , at the option of the Company, based upon the Company’s Funded Debt Leverage Ratio. Funded Debt Leverage Ratio is defined as the ratio of (1) all outstanding indebtedness for borrowed money and other interest-bearing indebtedness as of the date of determination to (2) EBITDA (which is (a) net income, less (b) income (or plus loss) from discontinued operations and extraordinary items, plus (c) income tax expenses, plus (d) interest expense, plus (e) depreciation, depletion, and amortization (including non-cash loss on retirement of assets), plus (f) stock compensation expense, less (g) cash expense related to stock compensation, plus or minus certain other adjustments) for the period of four consecutive fiscal quarters immediately preceding the date of determination. The Company has the benefit of the lowest margin if its Funded Debt Leverage Ratio is equal to or less than 0.5 to 1, and the margin increases as the ratio increases, to the maximum margin if the ratio is greater than 2.0 to 1. The Company will also bear additional costs for market disruption, regulatory changes effecting the lenders’ funding costs, and default pricing of an additional 2% interest rate margin on any amounts not paid when due. Amounts borrowed under the Credit Agreement are secured by liens on substantially all of the assets of the Company. The Credit Agreement contains financial covenants requiring that the Company maintain a Funded Debt Leverage Ratio of no greater than 3.25 to 1 and an Interest Coverage Ratio of at least 3.0 to 1. Interest Coverage Ratio is defined as the ratio, as of any date of determination, of (a) EBITDA for the 12 month period immediately preceding the date of determination, to (b) all interest, premium payments, debt discount, fees, charges and related expenses of the Company and its subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, paid during the 12 month period immediately preceding the date of determination. The Credit Agreement also limits the Company’s ability to, among other things, create liens, make investments, incur more indebtedness, merge or consolidate, make dispositions of property, pay dividends and make distributions to stockholders, enter into a new line of business, enter into transactions with affiliates and enter into burdensome agreements. The Credit Agreement does not limit the Company’s ability to acquire other businesses or companies except that the acquired business or company must be in the Company's line of business, the Company must be in compliance with the financial covenants on a pro forma basis after taking into account the acquisition, and, if the acquired business is a separate subsidiary, in certain circumstances the lenders will receive the benefit of a guaranty of the subsidiary and liens on its assets and a pledge of its stock. As of March 31, 2017 , the Company was in compliance with the terms of the Credit Agreement, and will continuously monitor its compliance with the covenants contained in its Credit Agreement. Notes Payable and Other In connection with certain of its acquisitions, the Company issued subordinated notes payable to the sellers. The maturity of the notes that remain outstanding are three years from the date of acquisition and bear interest at the prime rate for the Bank of Canada, currently 2.7% as of March 31, 2017. Interest expense is recorded in the condensed consolidated statements of income.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company performs fair value measurements in accordance with the guidance provided by ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial instruments measured at fair value on a recurring basis The fair value of contingent consideration liabilities classified as Level 3 was estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820. The significant inputs in the Level 3 measurement not supported by market activity include the probability assessments of expected future cash flows related to the acquisitions, appropriately discounted considering the uncertainties associated with the obligation, and as calculated in accordance with the terms of the applicable acquisition agreements. The following table represents the changes in the fair value of Level 3 contingent consideration: Three months ended March 31, 2017 Beginning balance $ 3,094 Accretion of liability 68 Foreign currency translation 14 Payments (51 ) Revaluation (693 ) Acquisitions 2,508 Ending Balance $ 4,940 Financial instruments not measured at fair value on a recurring basis The Company has evaluated current market conditions and borrower credit quality and has determined that the carrying value of its long-term debt approximates fair value. The fair value of the Company’s notes payable and capital lease obligations approximates their carrying amounts based on anticipated interest rates which management believes would currently be available to the Company for similar issuances of debt.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings and Government Investigations The Company is subject to periodic lawsuits, investigations and claims that arise in the ordinary course of business. The Company cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against it. Except possibly for certain of the matters described below, the Company does not believe that any currently pending legal proceeding to which the Company is a party will have a material adverse effect on its business, results of operations, cash flows or financial condition. The costs of defense and amounts that may be recovered against the Company may be covered by insurance for certain matters. Litigation and Commercial Claims The Company was a defendant in a consolidated purported class and collective action, Edgar Viceral and David Kruger v Mistras Group, et al , pending in the U.S. District Court for the Northern District of California. This matter resulted from the consolidation of two cases originally filed in California state court in April 2015. The parties have settled the case, whereby the Company recorded a pre-tax charge of $6.3 million during the three months ended June 30, 2016 and paid the settlement in February 2017. The Company is a defendant in the lawsuit AGL Services Company v. Mistras Group, Inc., pending in U.S. District Court for the Northern District of Georgia, filed November 2016. The case involves radiography work performed by the Company in fiscal 2013 on the construction of a pipeline project in the U.S. The owner of the pipeline project contends that certain of the radiography images the Company’s technicians prepared regarding the project did not meet the code quality interpretation standards required by the American Petroleum Institute. The project owner is claiming damages as a result of the alleged quality defects of the Company’s radiography images. The complaint alleges damages of approximately $6 million . The Company is currently unable to determine the likely outcome or reasonably estimate the amount or range of potential liability related to this matter after consideration of its insurance coverage, and accordingly, has not established any reserves for this matter. The Company’s subsidiary in France has been involved in a dispute with a former owner of a business in France purchased by the Company’s French subsidiary. The former owner received a judgment in his favor in the amount of approximately $0.4 million for payment of the contingent consideration portion of the purchase price for the business. The judgment is being appealed, but the Company recorded a reserve for the full amount of the judgment during the three months ended June 30, 2016. The Company is a defendant in a lawsuit, Triumph Aerostructures, LLC d/b/a Triumph Aerostructures-Vought Aircraft Division v. Mistras Group, Inc ., pending in Texas State district court, 193rd Judicial District, Dallas County, Texas, filed September 2016. The plaintiff alleges Mistras delivered, in fiscal 2014, a defective Ultrasonic inspection system and is alleging damages of approximately $2.3 million , the amount it paid for the system. The Company is currently unable to determine the likely outcome or reasonably estimate the amount or range of potential liability related to this matter, and accordingly, has not established any reserves for this matter. Government Investigations In May 2015, the Company received a notice from the U.S. Environmental Protection Agency (“EPA”) that it performed a preliminary assessment at a leased facility the Company operates in Cudahy, California. Based upon the preliminary assessment, the EPA is conducting an investigation of the site, which includes taking groundwater and soil samples. The purpose of the investigation is to determine whether any hazardous materials were released from the facility. The Company has been informed that certain hazardous materials and pollutants have been found in the ground water in the general vicinity of the site and the EPA is attempting to ascertain the origination or source of these materials and pollutants. Given the historic industrial use of the site, the EPA determined that the site of the Cudahy facility should be examined, along with numerous other sites in the vicinity. At this time, the Company is unable to determine whether it has any liability in connection with this matter and if so, the amount or range of any such liability, and accordingly, has not established any reserves for this matter. Acquisition-related contingencies The Company is liable for contingent consideration in connection with certain of its acquisitions. As of March 31, 2017 , total potential acquisition-related contingent consideration ranged from zero to approximately $16.9 million and would be payable upon the achievement of specific performance metrics by certain of the acquired companies over the next 3.0 years of operations. See Note 4 - Acquisitions to these condensed consolidated financial statements for further discussion of the Company’s acquisitions.

Segment Disclosure

Segment Disclosure	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Disclosure	Segment Disclosure The Company’s three operating segments are: • Services. This segment provides asset protection solutions primarily in North America with the largest concentration in the United States and the Canadian services business, consisting primarily of non-destructive testing and inspection and engineering services that are used to evaluate the structural integrity and reliability of critical energy, industrial and public infrastructure. • International. This segment offers services, products and systems similar to those of the Company’s other two segments to global markets, principally in Europe, the Middle East, Africa, Asia and South America, but not to customers in China and South Korea, which are served by the Products and Systems segment. • Products and Systems. This segment designs, manufactures, sells, installs and services the Company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States. Costs incurred for general corporate services, including finance, legal, and certain other costs that are provided to the segments are reported within Corporate and eliminations. Sales to the International segment from the Products and Systems segment and subsequent sales by the International segment of the same items are recorded and reflected in the operating performance of both segments. Additionally, engineering charges and royalty fees charged to the Services and International segments by the Products and Systems segment are reflected in the operating performance of each segment. All such intersegment transactions are eliminated in the Company’s consolidated financial reporting. Selected consolidated financial information by segment for the periods shown was as follows (intercompany transactions are eliminated in Corporate and eliminations): Three months ended March 31, 2017 March 31, 2016 Revenues Services $ 126,329 $ 131,579 International 34,256 30,980 Products and Systems 5,550 6,680 Corporate and eliminations (2,817 ) (1,784 ) $ 163,318 $ 167,455 Three months ended March 31, 2017 March 31, 2016 Gross profit Services $ 30,213 $ 32,458 International 10,460 8,673 Products and Systems 2,594 2,738 Corporate and eliminations (114 ) 101 $ 43,153 $ 43,970 Three months ended March 31, 2017 March 31, 2016 Income (loss) from operations Services $ 7,380 $ 11,339 International 3,034 720 Products and Systems (449 ) (132 ) Corporate and eliminations (6,715 ) (6,281 ) $ 3,250 $ 5,646 Income (loss) by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations. Three months ended March 31, 2017 March 31, 2016 Depreciation and amortization Services $ 5,318 $ 5,623 International 1,844 1,880 Products and Systems 567 588 Corporate and eliminations (64 ) (74 ) $ 7,665 $ 8,017 March 31, 2017 December 31, 2016 Intangible assets, net Services $ 21,184 $ 19,550 International 13,889 14,139 Products and Systems 5,293 5,482 Corporate and eliminations 860 836 $ 41,226 $ 40,007 March 31, 2017 December 31, 2016 Total assets Services $ 293,401 $ 291,539 International 134,813 130,427 Products and Systems 29,819 28,964 Corporate and eliminations 11,697 18,497 $ 469,730 $ 469,427 Revenues by geographic area for the three months ended March 31, 2017 and 2016 , respectively, were as follows: Three months ended March 31, 2017 March 31, 2016 Revenues United States $ 111,531 $ 121,271 Other Americas 15,473 14,783 Europe 30,660 27,247 Asia-Pacific 5,654 4,154 $ 163,318 $ 167,455

Repurchase of Common Stock

Repurchase of Common Stock	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Repurchase of Common Stock	Repurchase of Common Stock On October 7, 2015, the Company's Board of Directors approved a $50 million stock repurchase plan. As part of this plan, on August 17, 2016, the Company entered into an agreement with its CEO, Dr. Sotirios Vahaviolos, to purchase up to 1 million of his shares, commencing in October 2016. Pursuant to the agreement, in general, the Company will purchase from Dr. Vahaviolos up to $2 million of shares each month, at a 2% discount to the average daily closing price of the Company's common stock for the preceding month. During the quarter ended March 31, 2017, the Company purchased approximately 256,000 shares from Dr. Vahaviolos at an average price of $23.41 per share and an aggregate cost of $6.0 million . From the inception of the plan, the Company has purchased approximately 530,000 shares from Dr. Vahaviolos at an average price of $22.63 per share for an aggregate cost of $12.0 million and approximately 146,000 shares in the open market at an average price of $20.48 per share for an aggregate cost of approximately $3.0 million . All such repurchased shares are classified as Treasury Stock on the condensed consolidated balance sheet. As of March 31, 2017, approximately $35.0 million remained available to repurchase shares under the stock repurchase plan.

Description of Business and B21

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods of the fiscal years ending December 31, 2017 and 2016 . Certain items included in these statements are based on management’s estimates. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements contained in the Company’s Transition Report on Form 10-K (“2016 Transition Report”) for the transition period ended December 31, 2016 , as filed with the Securities and Exchange Commission on March 20, 2017 .
Principles of Consolidation	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Mistras Group, Inc. and its wholly and majority-owned subsidiaries. For subsidiaries in which the Company’s ownership interest is less than 100%, the noncontrolling interests are reported in stockholders’ equity in the accompanying condensed consolidated balance sheets. The noncontrolling interests in net income, net of tax, is classified separately in the accompanying condensed consolidated statements of income. All significant intercompany accounts and transactions have been eliminated in consolidation. On January 3, 2017, the Company's Board of Directors approved a change in the Company's fiscal year end from May 31 to December 31, effective December 31, 2016. The transition period was for the seven months ended December 31, 2016 ("the transition period"). Prior to this change, the Company's International segment was consolidated on a one month lag. Therefore, for this interim report, the condensed consolidated income statement includes a one month lag for the International segment for the three months ended March 31, 2016. Management does not believe that any events occurred during the one-month lag period that would have a material effect on the Company’s condensed consolidated financial statements. The one month lag was removed with the change in the Company's fiscal year noted above, and accordingly, the condensed consolidated income statement does not include a one month lag for the International segment's results for the three months ended March 31, 2017.
Reclassification	Reclassification Certain amounts in prior periods have been reclassified to conform to the current year presentation. Such reclassifications did not have a material effect on the Company's financial condition or results of operations as previously reported.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for all entities by one year. This update is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. ASU 2014-09 will become effective for us beginning 2018, which is when we plan to adopt this standard. The ASU permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The ASU also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. We are still in the process of evaluating the effect of adoption on our condensed consolidated financial statements and are currently assessing our contracts with customers. We anticipate we will expand our condensed consolidated financial statement disclosures in order to comply with ASU 2014-09. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This amendment will simplify the presentation of deferred tax assets and liabilities on the balance sheet and require all deferred tax assets and liabilities to be treated as non-current. ASU 2015-17 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance prospectively beginning in the first quarter of 2017, which did not have a material impact on the condensed consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This amendment supersedes previous accounting guidance ( Topic 840) and requires all leases, with exception of leases with a term of 12 months or less, to be recorded on the balance sheet as lease assets and lease liabilities. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2018, with early adoption permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the effect that ASU 2016-02 will have on its condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718). This amendment will simplify certain aspects of accounting for share-based payment transactions, which include accounting for income taxes and the related impact on the statement of cash flows, an option to account for forfeitures when they occur in addition to the existing guidance to estimate the forfeitures of awards, classification of awards as either equity or liabilities and classification on the statement of cash flows for employee taxes paid to tax authorities on shares withheld for vesting. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2016, with early adoption permitted. The Company prospectively adopted this guidance beginning in the first quarter of 2017, and accordingly, is recording excess tax benefits and tax deficiencies as a component of income tax expense. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). This amendment will provide guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact that ASU 2016-15 will have on its condensed consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230). This amendment will clarify the presentation of restricted cash on the statement of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning and ending cash balances on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect that ASU 2016-18 will have a material impact on its condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). This amendment eliminates Step Two of the goodwill impairment test. Under the amendments in this update, entities should perform the annual goodwill impairment test by comparing the carrying value of its reporting units to their fair value. An entity should record an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Tax deductibility of goodwill should be considered in evaluating any reporting unit's impairment loss to be taken. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact that ASU 2017-04 will have on its condensed consolidated financial statements and related disclosures.
Fair Value Measurements	Fair Value Measurements The Company performs fair value measurements in accordance with the guidance provided by ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial instruments measured at fair value on a recurring basis The fair value of contingent consideration liabilities classified as Level 3 was estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820. The significant inputs in the Level 3 measurement not supported by market activity include the probability assessments of expected future cash flows related to the acquisitions, appropriately discounted considering the uncertainties associated with the obligation, and as calculated in accordance with the terms of the applicable acquisition agreements. Financial instruments not measured at fair value on a recurring basis The Company has evaluated current market conditions and borrower credit quality and has determined that the carrying value of its long-term debt approximates fair value. The fair value of the Company’s notes payable and capital lease obligations approximates their carrying amounts based on anticipated interest rates which management believes would currently be available to the Company for similar issuances of debt.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock option activity, weighted average exercise prices and options outstanding	A summary of the stock option activity, weighted average exercise prices and options outstanding as of March 31, 2017 and 2016 is as follows: For the three months ended March 31, 2017 2016 Common Stock Options Weighted Average Exercise Price Common Stock Options Weighted Average Exercise Price Outstanding at beginning of period: 2,167 $ 13.33 2,265 $ 13.16 Granted — $ — — $ — Exercised (30 ) $ 7.67 (19 ) $ 10.02 Expired or forfeited — $ — — $ — Outstanding at end of period: 2,137 $ 13.41 2,246 $ 13.19
Summary of Company's outstanding, nonvested restricted share units	A summary of the Company's outstanding, nonvested restricted share units is presented below: For the three months ended March 31, 2017 2016 Units Weighted Units Weighted Outstanding at beginning of period: 569 $ 20.81 595 $ 18.89 Granted — $ — 1 $ 23.11 Released (5 ) $ 24.09 (5 ) $ 24.12 Forfeited (3 ) $ 21.31 (9 ) $ 19.28 Outstanding at end of period: 561 $ 20.78 582 $ 18.85 A summary of the Company's Performance Restricted Stock Unit activity is presented below: For the three months ended March 31, 2017 Units Weighted Outstanding at beginning of period: 290 $ 16.01 Granted — $ — Performance condition adjustments (3 ) $ 23.30 Released — $ — Forfeited — $ — Outstanding at end of period: 287 $ 15.83
Summary of Company's Performance Restricted Stock Units activity	A summary of the Company's outstanding, nonvested restricted share units is presented below: For the three months ended March 31, 2017 2016 Units Weighted Units Weighted Outstanding at beginning of period: 569 $ 20.81 595 $ 18.89 Granted — $ — 1 $ 23.11 Released (5 ) $ 24.09 (5 ) $ 24.12 Forfeited (3 ) $ 21.31 (9 ) $ 19.28 Outstanding at end of period: 561 $ 20.78 582 $ 18.85 A summary of the Company's Performance Restricted Stock Unit activity is presented below: For the three months ended March 31, 2017 Units Weighted Outstanding at beginning of period: 290 $ 16.01 Granted — $ — Performance condition adjustments (3 ) $ 23.30 Released — $ — Forfeited — $ — Outstanding at end of period: 287 $ 15.83

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of computations of basic and diluted earnings per share	The following table sets forth the computations of basic and diluted earnings per share: Three months ended March 31, 2017 March 31, 2016 Basic earnings per share Numerator: Net income attributable to Mistras Group, Inc. $ 1,692 $ 3,447 Denominator: Weighted average common shares outstanding 28,687 28,915 Basic earnings per share $ 0.06 $ 0.12 Diluted earnings per share: Numerator: Net income attributable to Mistras Group, Inc. $ 1,692 $ 3,447 Denominator: Weighted average common shares outstanding 28,687 28,915 Dilutive effect of stock options outstanding 879 777 Dilutive effect of restricted stock units outstanding 339 288 29,905 29,980 Diluted earnings per share $ 0.06 $ 0.11

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Schedule of Preliminary Purchase Price Allocation	The Company's preliminary purchase price allocations are included in the table below, summarizing the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition: 2017 Number of Entities 1 Consideration transferred: Cash paid $ 4,500 Notes payable — Contingent consideration 2,508 Consideration transferred $ 7,008 Current assets $ — Property, plant and equipment 845 Intangible assets 2,742 Goodwill 3,326 Current liabilities — Long-term deferred tax asset 95 Net assets acquired $ 7,008
Schedule of Acquisition-Related Expenses	In the course of its acquisition activities, the Company incurs costs in connection with due diligence, professional fees, and other expenses. Additionally, the Company adjusts the fair value of acquisition-related contingent consideration liabilities on a quarterly basis. These amounts are recorded as acquisition-related (benefit) expense, net, on the condensed consolidated statements of income and were as follows for the three months ended March 31, 2017 and 2016 : Three months ended March 31, 2017 2016 Due diligence, professional fees and other transaction costs $ 81 $ 103 Adjustments to fair value of contingent consideration liabilities (625 ) (256 ) Acquisition-related expense (benefit), net $ (544 ) $ (153 )

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Schedule of accounts receivable	Accounts receivable consisted of the following: March 31, 2017 December 31, 2016 Trade accounts receivable $ 128,056 $ 133,704 Allowance for doubtful accounts (3,835 ) (2,852 ) Accounts receivable, net $ 124,221 $ 130,852

Property, Plant and Equipment26

Property, Plant and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property, plant and equipment	Property, plant and equipment consisted of the following: Useful Life (Years) March 31, 2017 December 31, 2016 Land $ 1,717 $ 1,714 Buildings and improvements 30-40 19,896 19,261 Office furniture and equipment 5-8 12,850 12,574 Machinery and equipment 5-7 170,544 166,423 205,007 199,972 Accumulated depreciation and amortization (132,109 ) (126,823 ) Property, plant and equipment, net $ 72,898 $ 73,149

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying amount of goodwill by segment is shown below: Services International Products and Systems Total Balance at December 31, 2016 $ 123,392 $ 33,351 $ 13,197 $ 169,940 Goodwill acquired during the period 3,326 — — 3,326 Adjustments to preliminary purchase price allocations — — — — Foreign currency translation 111 530 — 641 Balance at March 31, 2017 $ 126,829 $ 33,881 $ 13,197 $ 173,907

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of gross amount, accumulated amortization and net carrying amount of intangible assets	The gross amount, accumulated amortization and net carrying amount of intangible assets were as follows: March 31, 2017 December 31, 2016 Useful Life (Years) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Customer relationships 5-12 $ 84,218 $ (52,046 ) $ 32,172 $ 81,559 $ (50,417 ) $ 31,142 Software/Technology 3-15 18,525 (12,942 ) 5,583 18,128 (12,577 ) 5,551 Covenants not to compete 2-5 11,540 (9,823 ) 1,717 11,143 (9,647 ) 1,496 Other 2-5 7,415 (5,661 ) 1,754 7,266 (5,448 ) 1,818 Total $ 121,698 $ (80,472 ) $ 41,226 $ 118,096 $ (78,089 ) $ 40,007

Accrued Expenses and Other Cu29

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	Accrued expenses and other current liabilities consisted of the following: March 31, 2017 December 31, 2016 Accrued salaries, wages and related employee benefits $ 23,932 $ 23,442 Contingent consideration, current portion 3,044 1,826 Accrued workers’ compensation and health benefits 5,385 6,351 Deferred revenue 4,740 3,743 Legal settlement accrual — 6,320 Other accrued expenses 16,536 17,015 Total accrued expenses and other liabilities $ 53,637 $ 58,697

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consisted of the following: March 31, 2017 December 31, 2016 Senior credit facility $ 92,966 $ 82,776 Notes payable 323 320 Other 4,519 4,200 Total debt 97,808 87,296 Less: Current portion (1,766 ) (1,379 ) Long-term debt, net of current portion $ 96,042 $ 85,917

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of changes in fair value of Level 3 contingent consideration	The following table represents the changes in the fair value of Level 3 contingent consideration: Three months ended March 31, 2017 Beginning balance $ 3,094 Accretion of liability 68 Foreign currency translation 14 Payments (51 ) Revaluation (693 ) Acquisitions 2,508 Ending Balance $ 4,940

Segment Disclosure (Tables)

Segment Disclosure (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of consolidated financial information by segment	Selected consolidated financial information by segment for the periods shown was as follows (intercompany transactions are eliminated in Corporate and eliminations): Three months ended March 31, 2017 March 31, 2016 Revenues Services $ 126,329 $ 131,579 International 34,256 30,980 Products and Systems 5,550 6,680 Corporate and eliminations (2,817 ) (1,784 ) $ 163,318 $ 167,455 Three months ended March 31, 2017 March 31, 2016 Gross profit Services $ 30,213 $ 32,458 International 10,460 8,673 Products and Systems 2,594 2,738 Corporate and eliminations (114 ) 101 $ 43,153 $ 43,970 Three months ended March 31, 2017 March 31, 2016 Income (loss) from operations Services $ 7,380 $ 11,339 International 3,034 720 Products and Systems (449 ) (132 ) Corporate and eliminations (6,715 ) (6,281 ) $ 3,250 $ 5,646 Income (loss) by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations. Three months ended March 31, 2017 March 31, 2016 Depreciation and amortization Services $ 5,318 $ 5,623 International 1,844 1,880 Products and Systems 567 588 Corporate and eliminations (64 ) (74 ) $ 7,665 $ 8,017 March 31, 2017 December 31, 2016 Intangible assets, net Services $ 21,184 $ 19,550 International 13,889 14,139 Products and Systems 5,293 5,482 Corporate and eliminations 860 836 $ 41,226 $ 40,007 March 31, 2017 December 31, 2016 Total assets Services $ 293,401 $ 291,539 International 134,813 130,427 Products and Systems 29,819 28,964 Corporate and eliminations 11,697 18,497 $ 469,730 $ 469,427
Schedule of revenues by geographic area	Revenues by geographic area for the three months ended March 31, 2017 and 2016 , respectively, were as follows: Three months ended March 31, 2017 March 31, 2016 Revenues United States $ 111,531 $ 121,271 Other Americas 15,473 14,783 Europe 30,660 27,247 Asia-Pacific 5,654 4,154 $ 163,318 $ 167,455

Description of Business and B33

Description of Business and Basis of Presentation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2017mocustomer	Mar. 31, 2016customer
Principles of Consolidation
Period lag in the consolidation of International segment subsidiaries (months)	1 month
Number of months less than the actual number of months from the acquisition date for which results of international segment subsidiaries are included in consolidation (months) | mo	1
Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk, number of customers		1
Concentration risk, percentage		10.00%
Customer Concentration Risk | Revenues | Services
Concentration Risk [Line Items]
Concentration risk, number of customers	1
Concentration risk, percentage	11.00%
Customer Concentration Risk | Accounts Receivable | Services
Concentration Risk [Line Items]
Concentration risk, number of customers	1
Concentration risk, percentage	9.00%

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2017planshares
Share-based compensation
Number of employee stock ownership plans (plan) | plan	3
2007 Plan
Share-based compensation
Number of awards that may be granted (in shares)	0
2009 Plan
Share-based compensation
Number of awards that may be granted (in shares)	0

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Options (Details) - Stock Options - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Common Stock Options (in shares)
Outstanding at the beginning of the period: (in shares)	2,167,000	2,265,000
Granted (in shares)	0	0
Exercised (in shares)	(30,000)	(19,000)
Expired of forfeited (in shares)	0	0
Outstanding at the end of the period: (in shares)	2,137,000	2,246,000
Weighted Average Exercise Price (in dollar per share)
Outstanding at the beginning of period: (in dollars per share)	$ 13.33	$ 13.16
Granted (in dollars per share)	0	0
Exercised (in dollars per share)	7.67	10.02
Expired or forfeited (in dollars per share)	0	0
Outstanding at the end of period: (in dollars per share)	$ 13.41	$ 13.19
Recognized share-based compensation expense (less than)	$ 0	$ 100,000
Unrecognized compensation costs	$ 0

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Unit Awards - Narrative (Details) - Restricted Stock Units shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)directorshares	Mar. 31, 2016USD ($)directorshares
Share-based compensation
Recognized share-based compensation expense (benefit)	$ 1,100	$ 1,100
Unrecognized compensation cost, net of estimated forfeitures	$ 8,300
Weighted-average period over which unrecognized compensation cost is expected to be recognized (years)	2 years 6 months
Fair value of shares vested	$ 100	$ 100
Shares vested (in shares) | shares	5	5
Non-employee directors
Share-based compensation
Fair value of shares vested	$ 9	$ 12
Number of non-employee directors to whom fully vested common stock is granted (director) | director	5	5
Number of fully vested common stock granted (in shares) | shares	200	300

Share-Based Compensation - Re37

Share-Based Compensation - Restricted Stock Units Awards - Activity (Details) - Restricted Stock Units - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restricted Stock Units Awards (Units)
Outstanding at beginning of period: (in shares)	569	595
Granted (in shares)	0	1
Released (in shares)	(5)	(5)
Forfeited (in shares)	(3)	(9)
Outstanding at end of period: (in shares)	561	582
Weighted Average Grant-Date Fair Value (in dollars per share)
Outstanding at the beginning of period: (in dollars per share)	$ 20.81	$ 18.89
Granted (in dollars per share)	0	23.11
Released (in dollars per share)	24.09	24.12
Forfeited (in dollars per share)	21.31	19.28
Outstanding at end of period: (in dollars per share)	$ 20.78	$ 18.85

Share-Based Compensation - Perf

Share-Based Compensation - Performance Restricted Stock Units - Narrative (Details) - Performance Restricted Stock Units $ in Millions	3 Months Ended		7 Months Ended
	Mar. 31, 2017USD ($)performance_metricshares	Mar. 31, 2016USD ($)	Dec. 31, 2016shares
Share-based compensation
Performance period (years)	7 months		1 year
Nonvested shares outstanding (in shares)	287,000		290,000
Fiscal 2016 Grants
Share-based compensation
Performance period (years)	1 year
Number of performance award metrics | performance_metric	3
Requisite service period (years)	5 years
Recognized share-based compensation expense (benefit) | $	$ 0.4	$ 0.4
Unrecognized compensation cost | $	$ 2.3
Nonvested shares outstanding (in shares)	287,000
Weighted-average period over which unrecognized compensation cost is expected to be recognized (years)	1 year 9 months 2 days
Fiscal 2016 Grants | Anniversary 1
Share-based compensation
Award vesting rights, percentage	25.00%
Fiscal 2016 Grants | Anniversary 2
Share-based compensation
Award vesting rights, percentage	25.00%
Fiscal 2016 Grants | Anniversary 3
Share-based compensation
Award vesting rights, percentage	25.00%
Fiscal 2016 Grants | Anniversary 4
Share-based compensation
Award vesting rights, percentage	25.00%
Fiscal 2016 Grants | Executive and Senior Officers
Share-based compensation
Reduction in nonvested shares authorized (in shares)	3,000

Share-Based Compensation - Pe39

Share-Based Compensation - Performance Restricted Stock Units - Activity (Details) - Performance Restricted Stock Units shares in Thousands	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Performance Restricted Stock (Units)
Outstanding at beginning of period: (in shares) | shares	290
Granted (in shares) | shares	0
Performance condition adjustments (in shares) | shares	(3)
Released (in shares) | shares	0
Forfeited (in shares) | shares	0
Outstanding at end of period: (in shares) | shares	287
Weighted Average Grant-Date Fair Value (in dollars per share)
Outstanding at the beginning of period: (in dollars per share) | $ / shares	$ 16.01
Granted (in dollars per share) | $ / shares	0
Performance condition adjustments (in dollars per share) | $ / shares	23.30
Released (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Outstanding at end of period: (in dollars per share) | $ / shares	$ 15.83

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic earnings per share
Net income attributable to Mistras Group, Inc.	$ 1,692	$ 3,447
Denominator:
Weighted average common shares outstanding (in shares)	28,687	28,915
Basic earnings per share (in dollars per share)	$ 0.06	$ 0.12
Denominator:
Weighted average common shares outstanding (in shares)	28,687	28,915
Dilutive effect of stock options outstanding (in shares)	879	777
Dilutive effect of restricted stock units outstanding (in shares)	339	288
Weighted average common shares outstanding, diluted (in shares)	29,905	29,980
Diluted earnings per share (in dollars per share)	$ 0.06	$ 0.11

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) $ in Thousands	3 Months Ended		7 Months Ended
	Mar. 31, 2017USD ($)Entity	Mar. 31, 2016Entity	Dec. 31, 2016USD ($)Entity
Acquisitions
Period over which potential acquisition-related contingent consideration would be payable	3 years
Goodwill	$ 173,907		$ 169,940
Fiscal 2017 Acquisitions
Acquisitions
Number of acquisitions | Entity	1
Cash paid	$ 4,500
Contingent consideration	2,508
Goodwill	3,326
Intangible assets	2,742
Revenues	300
Operating income	$ 100
Fiscal 2017 Acquisitions | U.S.
Acquisitions
Number of acquisitions | Entity	1
Cash paid	$ 4,500
Contingent consideration	$ 3,500
Period over which potential acquisition-related contingent consideration would be payable	3 years
Goodwill	$ 3,300
Fiscal 2016 Acquisitions
Acquisitions
Number of acquisitions | Entity		0	3
Goodwill			$ 4,100
Intangible assets			$ 3,400

Acquisitions - Preliminary Purc

Acquisitions - Preliminary Purchase Price Allocation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Entity	Dec. 31, 2016USD ($)
Acquisitions
Goodwill	$ 173,907	$ 169,940
Fiscal 2017 Acquisitions
Acquisitions
Number of Entities | Entity	1
Cash paid	$ 4,500
Notes payable	0
Contingent consideration	2,508
Consideration transferred	7,008
Current assets	0
Property, plant and equipment	845
Intangible assets	2,742
Goodwill	3,326
Current liabilities	0
Long-term deferred tax asset	95
Net assets acquired	$ 7,008

Acquisitions - Acquisition-Rela

Acquisitions - Acquisition-Related Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Acquisitions
Acquisition-related expense (benefit), net	$ (544)	$ (153)
Fiscal 2017 Acquisitions
Acquisitions
Due diligence, professional fees and other transaction costs	81
Adjustments to fair value of contingent consideration liabilities	(625)
Acquisition-related expense (benefit), net	$ (544)
Fiscal 2016 Acquisitions
Acquisitions
Due diligence, professional fees and other transaction costs		103
Adjustments to fair value of contingent consideration liabilities		(256)
Acquisition-related expense (benefit), net		$ (153)

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade accounts receivable	$ 128,056	$ 133,704
Allowance for doubtful accounts	(3,835)	(2,852)
Accounts receivable, net	$ 124,221	$ 130,852

Property, Plant and Equipment45

Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Property, Plant and Equipment, net
Property, plant and equipment, gross	$ 205,007		$ 199,972
Accumulated depreciation and amortization	(132,109)		(126,823)
Property, plant and equipment, net	72,898		73,149
Depreciation expense	5,500	$ 5,600
Land
Property, Plant and Equipment, net
Property, plant and equipment, gross	1,717		1,714
Buildings and improvements
Property, Plant and Equipment, net
Property, plant and equipment, gross	$ 19,896		19,261
Buildings and improvements | Minimum
Property, Plant and Equipment, net
Useful Life (Years)	30 years
Buildings and improvements | Maximum
Property, Plant and Equipment, net
Useful Life (Years)	40 years
Office furniture and equipment
Property, Plant and Equipment, net
Property, plant and equipment, gross	$ 12,850		12,574
Office furniture and equipment | Minimum
Property, Plant and Equipment, net
Useful Life (Years)	5 years
Office furniture and equipment | Maximum
Property, Plant and Equipment, net
Useful Life (Years)	8 years
Machinery and equipment
Property, Plant and Equipment, net
Property, plant and equipment, gross	$ 170,544		$ 166,423
Machinery and equipment | Minimum
Property, Plant and Equipment, net
Useful Life (Years)	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment, net
Useful Life (Years)	7 years

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Balance at December 31, 2016	$ 169,940
Goodwill acquired during the period	3,326
Adjustments to preliminary purchase price allocations	0
Foreign currency translation	641
Balance at March 31, 2017	173,907
Services
Goodwill [Roll Forward]
Balance at December 31, 2016	123,392
Goodwill acquired during the period	3,326
Adjustments to preliminary purchase price allocations	0
Foreign currency translation	111
Balance at March 31, 2017	126,829
International
Goodwill [Roll Forward]
Balance at December 31, 2016	33,351
Goodwill acquired during the period	0
Adjustments to preliminary purchase price allocations	0
Foreign currency translation	530
Balance at March 31, 2017	33,881
Goodwill, cumulative impairment loss	9,900	$ 9,900
Products and Systems
Goodwill [Roll Forward]
Balance at December 31, 2016	13,197
Goodwill acquired during the period	0
Adjustments to preliminary purchase price allocations	0
Foreign currency translation	0
Balance at March 31, 2017	$ 13,197

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Intangible assets
Gross Amount	$ 121,698		$ 118,096
Accumulated Amortization	(80,472)		(78,089)
Net Carrying Amount	41,226		40,007
Amortization expense	2,200	$ 2,400
Customer relationships
Intangible assets
Gross Amount	84,218		81,559
Accumulated Amortization	(52,046)		(50,417)
Net Carrying Amount	$ 32,172		31,142
Customer relationships | Minimum
Intangible assets
Useful Life (Years)	5 years
Customer relationships | Maximum
Intangible assets
Useful Life (Years)	12 years
Software/Technology
Intangible assets
Gross Amount	$ 18,525		18,128
Accumulated Amortization	(12,942)		(12,577)
Net Carrying Amount	$ 5,583		5,551
Software/Technology | Minimum
Intangible assets
Useful Life (Years)	3 years
Software/Technology | Maximum
Intangible assets
Useful Life (Years)	15 years
Covenants not to compete
Intangible assets
Gross Amount	$ 11,540		11,143
Accumulated Amortization	(9,823)		(9,647)
Net Carrying Amount	$ 1,717		1,496
Covenants not to compete | Minimum
Intangible assets
Useful Life (Years)	2 years
Covenants not to compete | Maximum
Intangible assets
Useful Life (Years)	5 years
Other
Intangible assets
Gross Amount	$ 7,415		7,266
Accumulated Amortization	(5,661)		(5,448)
Net Carrying Amount	$ 1,754		$ 1,818
Other | Minimum
Intangible assets
Useful Life (Years)	2 years
Other | Maximum
Intangible assets
Useful Life (Years)	5 years

Accrued Expenses and Other Cu48

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued salaries, wages and related employee benefits	$ 23,932	$ 23,442
Contingent consideration, current portion	3,044	1,826
Accrued workers’ compensation and health benefits	5,385	6,351
Deferred revenue	4,740	3,743
Legal settlement accrual	0	6,320
Other accrued expenses	16,536	17,015
Total accrued expenses and other liabilities	$ 53,637	$ 58,697

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt	$ 97,808	$ 87,296
Less: Current portion	(1,766)	(1,379)
Long-term debt, net of current portion	96,042	85,917
Senior credit facility
Debt Instrument [Line Items]
Long-term debt	92,966	82,776
Notes payable
Debt Instrument [Line Items]
Long-term debt	323	320
Other
Debt Instrument [Line Items]
Long-term debt	$ 4,519	$ 4,200

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details)	Oct. 31, 2014USD ($)Quarter	Mar. 31, 2017USD ($)
Senior credit facility
Senior Credit Facility
Maximum borrowing capacity	$ 175,000,000
Line of credit facility, higher borrowing capacity option	225,000,000
Maximum borrowing capacity in non-U.S. Dollar currencies	30,000,000
Maximum amount available for the issuance of letters of credit	$ 10,000,000
Outstanding borrowings		$ 93,000,000
Outstanding letters of credit		$ 5,700,000
Number of consecutive fiscal quarters used for calculating Funded Debt Leverage Ratio | Quarter	4
Funded Debt Leverage Ratio at which the entity will have the benefit of lowest interest margin (less than or equal to)	0.5
Funded Debt Leverage Ratio at which the entity will bear the maximum interest rate margin (greater than)	2
Additional interest rate margin if Funded Debt Leverage Ratio exceeds threshold (as a percent)	2.00%
Funded Debt Leverage Ratio for additional interest payment (less than)	3.25
Interest Coverage Ratio (greater than)	3
Preceding period used for calculating Interest Coverage Ratio	12 months
Senior credit facility | LIBOR
Senior Credit Facility
Reference rate, description	LIBOR
Senior credit facility | LIBOR | Minimum
Senior Credit Facility
Margin (as a percent)	1.00%
Senior credit facility | LIBOR | Maximum
Senior Credit Facility
Margin (as a percent)	1.75%
Senior credit facility | Base rate
Senior Credit Facility
Reference rate, description	base rate
Senior credit facility | Base rate | Minimum
Senior Credit Facility
Margin (as a percent)	(0.375%)
Senior credit facility | Base rate | Maximum
Senior Credit Facility
Margin (as a percent)	(1.25%)
Notes payable
Notes Payable and Other
Interest rate (as a percent)		2.70%
Notes payable | Minimum
Notes Payable and Other
Maturity term from the date of acquisition		3 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Contingent Consideration Liability [Roll Forward]
Beginning balance	$ 3,094
Accretion of liability	68
Foreign currency translation	14
Payments	(51)
Revaluation	(693)
Acquisitions	2,508
Ending Balance	$ 4,940

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2016	Mar. 31, 2017	Jun. 30, 2016
Litigation
Period over which potential acquisition-related contingent consideration would be payable		3 years
Consolidated class and collective action lawsuit
Litigation
Payroll taxes and other costs related to settlement			$ 6,300,000
Lawsuits for alleged quality defects
Litigation
Verbal demand for damages	$ 6,000,000
Dispute with former owner of company's French subsidiary | French subsidiary
Litigation
Litigation settlement			$ 400,000
Damages from Product Defects | Ultrasonic Inspection System
Litigation
Verbal demand for damages		$ 2,300,000
Acquisition-related contingencies
Litigation
Potential acquisition-related contingent consideration, low end of range		0
Potential acquisition-related contingent consideration, high end of range		$ 16,900,000

Segment Disclosure - Financial

Segment Disclosure - Financial Information by Segment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	3
Financial information by segment
Revenues	$ 163,318	$ 167,455
Gross profit	43,153	43,970
Income (loss) from operations	3,250	5,646
Depreciation and amortization	7,665	8,017
Intangible assets, net	41,226		$ 40,007
Total assets	469,730		469,427
Operating segments | Services
Financial information by segment
Revenues	126,329	131,579
Gross profit	30,213	32,458
Income (loss) from operations	7,380	11,339
Depreciation and amortization	5,318	5,623
Intangible assets, net	21,184		19,550
Total assets	293,401		291,539
Operating segments | International
Financial information by segment
Revenues	34,256	30,980
Gross profit	10,460	8,673
Income (loss) from operations	3,034	720
Depreciation and amortization	1,844	1,880
Intangible assets, net	13,889		14,139
Total assets	134,813		130,427
Operating segments | Products and Systems
Financial information by segment
Revenues	5,550	6,680
Gross profit	2,594	2,738
Income (loss) from operations	(449)	(132)
Depreciation and amortization	567	588
Intangible assets, net	5,293		5,482
Total assets	29,819		28,964
Corporate and eliminations
Financial information by segment
Revenues	(2,817)	(1,784)
Gross profit	(114)	101
Income (loss) from operations	(6,715)	(6,281)
Depreciation and amortization	(64)	$ (74)
Intangible assets, net	860		836
Total assets	$ 11,697		$ 18,497

Segment Disclosure - Revenues b

Segment Disclosure - Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue and long-lived assets by geographic area
Revenues	$ 163,318	$ 167,455
United States
Revenue and long-lived assets by geographic area
Revenues	111,531	121,271
Other Americas
Revenue and long-lived assets by geographic area
Revenues	15,473	14,783
Europe
Revenue and long-lived assets by geographic area
Revenues	30,660	27,247
Asia-Pacific
Revenue and long-lived assets by geographic area
Revenues	$ 5,654	$ 4,154

Repurchase of Common Stock (Det

Repurchase of Common Stock (Details) - Stock Repurchase Plan - USD ($)	Aug. 17, 2016	Mar. 31, 2017	Mar. 31, 2017	Oct. 07, 2015
Class of Stock [Line Items]
Stock repurchase plan, amount approved				$ 50,000,000
Treasury stock repurchased (in shares)			146,000
Treasury stock acquired, average price (in dollars per share)			$ 20.48
Treasury stock acquired, aggregate cost			$ 3,000,000
Stock repurchase plan, remaining amount approved		$ 35,000,000	$ 35,000,000
Chairman and CEO
Class of Stock [Line Items]
Stock repurchase plan, amount approved (in shares)	1,000,000
Stock repurchase plan, amount approved each month from CEO	$ 2,000,000
Average daily price of common stock for the preceding month discount, percent	2.00%
Treasury stock repurchased (in shares)		256,000	530,000
Treasury stock acquired, average price (in dollars per share)		$ 23.41	$ 22.63
Treasury stock acquired, aggregate cost		$ 6,000,000	$ 12,000,000