Mistras (MG) 8-K Other Events

Exhibit 99.1

Mistras Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

	(unaudited)			(unaudited)
	June 30, 2016			September 30, 2016			December 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	18,442		$	16,509		$	19,154
Accounts receivable, net	133,851			131,382			130,852
Inventories	10,285			10,448			10,017
Deferred income taxes	6,192			6,042			6,230
Prepaid expenses and other current assets	12,786			15,087			16,399
Total current assets	181,556			179,468			182,652
Property, plant and equipment, net	77,542			76,630			73,149
Intangible assets, net	42,402			40,839			40,007
Goodwill	168,408			169,062			169,940
Deferred income taxes	982			972			1,086
Other assets	2,307			2,376			2,593
Total assets	$	473,197		$	469,347		$	469,427
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	8,552		$	8,021		$	6,805
Accrued expenses and other current liabilities	62,162			57,336			58,697
Current portion of long-term debt	12,329			2,030			1,379
Current portion of capital lease obligations	7,573			6,779			6,488
Income taxes payable	2,090			2,543			4,342
Total current liabilities	92,706			76,709			77,711
Long-term debt, net of current portion	67,169			71,483			85,917
Obligations under capital leases, net of current portion	11,821			11,276			9,682
Deferred income taxes	18,165			20,246			17,584
Other long-term liabilities	6,597			7,233			7,789
Total liabilities	196,458			186,947			198,683
Commitments and contingencies
Equity
Preferred stock, 10,000,000 shares authorized	—			—			—
Common stock, $0.01 par value, 200,000,000 shares authorized, 28,940,455; 29,186,350; and 29,216,735 shares issued	290			293			292
Additional paid-in capital	214,189			215,237			217,211
Treasury stock, at cost, 0; 0; and 420,258 shares	—			—			(9,000		)
Retained earnings	83,602			90,840			91,803
Accumulated other comprehensive loss	(21,468		)	(24,108		)	(29,724		)
Total Mistras Group, Inc. stockholders’ equity	276,613			282,262			270,582
Noncontrolling interests	126			138			162
Total equity	276,739			282,400			270,744
Total Liabilities and Equity	$	473,197		$	469,347		$	469,427

1

Mistras Group, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Three months ended							Six months ended			Nine months ended			Year ended
	June 30, 2016			September 30, 2016		December 31, 2016		June 30, 2016			September 30, 2016			December 31, 2016
Revenue	$	178,340		$	168,811	$	170,156	$	345,795		$	514,606		$	684,762
Cost of revenue	121,044			112,754		116,902		239,273			352,027			468,929
Depreciation	5,761			5,406		5,276		11,017			16,423			21,699
Gross profit	51,535			50,651		47,978		95,505			146,156			194,134
Selling, general and administrative expenses	37,217			34,995		41,648		72,271			107,266			148,914
Research and engineering	623			643		742		1,285			1,928			2,670
Depreciation and amortization	2,865			2,513		2,549		5,627			8,140			10,689
Legal settlement	6,320			—		—		6,320			6,320			6,320
Acquisition-related expense (benefit), net	(330		)	384		94		(483		)	(99		)	(5		)
Income from operations	4,840			12,116		2,945		10,485			22,601			25,546
Interest expense	340			778		857		1,440			2,218			3,075
Income before provision for income taxes	4,500			11,338		2,088		9,045			20,383			22,471
Provision for income taxes	1,737			4,083		1,100		2,825			6,908			8,008
Net income	2,763			7,255		988		6,220			13,475			14,463
Less: net income attributable to noncontrolling interests, net of taxes	2			17		25		12			29			54
Net income attributable to Mistras Group, Inc.	$	2,761		$	7,238	$	963	$	6,208		$	13,446		$	14,409
Earnings per common share
Basic	$	0.10		$	0.25	$	0.03	$	0.21		$	0.46		$	0.50
Diluted	$	0.09		$	0.24	$	0.03	$	0.21		$	0.45		$	0.48
Weighted average common shares outstanding:
Basic	28,932			29,051		28,943		28,924			28,966			28,960
Diluted	30,152			30,231		29,920		30,083			30,139			30,114

2

Mistras Group, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

	Six months ended June 30, 2016			Nine months ended September 30, 2016			Year ended December 31, 2016
Cash flows from operating activities
Net income	$	6,220		$	13,475		$	14,463
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	16,644			24,563			32,388
Deferred income taxes	(1,655		)	512			(1,775		)
Share-based compensation expense	3,195			5,161			7,324
Fair value adjustments to contingent consideration	(933		)	(582		)	(697		)
Other	(1,075		)	(2,017		)	600
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	7,930			9,968			8,092
Inventories	237			200			608
Prepaid expenses and other assets	(449		)	(2,777		)	(4,645		)
Accounts payable	(1,271		)	(1,761		)	(2,792		)
Accrued expenses and other liabilities	9,337			5,247			7,509
Income taxes payable	(402		)	120			2,136
Net cash provided by operating activities	37,778			52,109			63,211
Cash flows from investing activities
Purchase of property, plant and equipment	(6,787		)	(11,238		)	(14,452		)
Purchase of intangible assets	(829		)	(1,106		)	(1,421		)
Acquisition of businesses, net of cash acquired	(33		)	(1,200		)	(8,287		)
Proceeds from sale of equipment	281			1,057			1,752
Net cash used in investing activities	(7,368		)	(12,487		)	(22,408		)
Cash flows from financing activities
Repayment of capital lease obligations	(4,221		)	(6,703		)	(9,305		)
Proceeds from borrowings of long-term debt	648			761			1,034
Repayment of long-term debt	(1,645		)	(12,187		)	(13,364		)
Proceeds from revolver	15,100			38,200			63,000
Repayments of revolver	(30,100		)	(49,000		)	(58,700		)
Payment of contingent consideration for business acquisitions	(2,123		)	(2,919		)	(2,925		)
Purchases of treasury stock	—			—			(9,000		)
Taxes paid related to net share settlement of equity awards	(62		)	(2,146		)	(2,378		)
Excess tax benefit from share-based payment compensation	129			646			698
Proceeds from the exercise of stock options	323			857			909
Net cash used in financing activities	(21,951		)	(32,491		)	(30,031		)
Effect of exchange rate changes on cash and cash equivalents	384			(221		)	(1,217		)
Net change in cash and cash equivalents	8,843			6,910			9,555
Cash and cash equivalents
Beginning of period	9,599			9,599			9,599
End of period	$	18,442		$	16,509		$	19,154
Supplemental disclosure of cash paid
Interest	$	1,484		$	2,454		$	3,174
Income taxes	$	4,502		$	9,562		$	12,364
Noncash investing and financing
Equipment acquired through capital lease obligations	$	6,229		$	7,408		$	8,320
Issuance of notes payable and other debt obligations primarily related to acquisitions	$	325		$	325		$	325

3

Mistras Group, Inc. and Subsidiaries

Unaudited Reconciliation of Net Income to Adjusted EBITDA and Unaudited Segment Data

(in thousands)

	Three months ended									Six months ended			Nine months ended			Year ended
	June 30, 2016			September 30, 2016			December 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Net income	$	2,763		$	7,255		$	988		$	6,220		$	13,475		$	14,463
Less: net income attributable to noncontrolling interests, net of taxes	2			17			25			12			29			54
Net income attributable to Mistras Group, Inc.	2,761			7,238			963			6,208			13,446			14,409
Interest expense	340			778			857			1,440			2,218			3,075
Provision for income taxes	1,737			4,083			1,100			2,825			6,908			8,008
Depreciation and amortization	8,626			7,919			7,825			16,644			24,563			32,388
Share-based compensation expense	1,466			1,966			2,163			3,195			5,161			7,324
Acquisition-related expense (benefit), net	(330		)	384			94			(483		)	(99		)	(5		)
Severance	673			265			433			727			992			1,425
Asset write-offs and lease terminations	—			—			1,042			—			—			1,042
Foreign exchange (gain) loss	(237		)	(835		)	(107		)	(519		)	(1,354		)	(1,461		)
Legal settlement	6,320			—			—			6,320			6,320			6,320
Adjusted EBITDA	$	21,356		$	21,798		$	14,370		$	36,357		$	58,155		$	72,525
	Three months ended									Six months ended			Nine months ended			Year ended
	June 30, 2016			September 30, 2016			December 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Revenues
Services	$	136,358		$	127,153		$	124,289		$	267,936		$	395,089		$	519,378
International	36,373			37,922			43,486			67,353			105,275			148,761
Products and Systems	6,467			6,807			6,094			13,148			19,955			26,049
Corporate and eliminations	(858		)	(3,071		)	(3,713		)	(2,642		)	(5,713		)	(9,426		)
	$	178,340		$	168,811		$	170,156		$	345,795		$	514,606		$	684,762
	Three months ended									Six months ended			Nine months ended			Year ended
	June 30, 2016			September 30, 2016			December 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Gross Profit
Services	$	36,490		$	33,704		$	30,880		$	68,948		$	102,652		$	133,532
International	11,867			13,133			14,699			20,540			33,673			48,372
Products and Systems	3,050			3,686			2,481			5,789			9,475			11,956
Corporate and eliminations	128			128			(82		)	228			356			274
	$	51,535		$	50,651		$	47,978		$	95,505		$	146,156		$	194,134

4

	Three months ended									Six months ended			Nine months ended			Year ended
	June 30, 2016			September 30, 2016			December 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Operating Income (Loss)
Services	$	7,372		$	12,221		$	6,856		$	18,711		$	30,932		$	37,788
International	2,454			5,751			3,983			3,174			8,925			12,908
Products and Systems	(114		)	806			(740		)	(246		)	560			(180		)
Corporate and eliminations	(4,872		)	(6,662		)	(7,154		)	(11,154		)	(17,816		)	(24,970		)
	$	4,840		$	12,116		$	2,945		$	10,485		$	22,601		$	25,546
	Three months ended									Six months ended			Nine months ended			Year ended
	June 30, 2016			September 30, 2016			December 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Adjusted EBITDA
Services	$	19,467		$	18,111		$	12,121		$	36,240		$	54,351		$	66,472
International	4,954			6,994			7,348			7,243			14,237			21,585
Products and Systems	492			1,358			(88		)	938			2,296			2,208
Corporate and eliminations	(3,557		)	(4,665		)	(5,011		)	(8,064		)	(12,729		)	(17,740		)
	$	21,356		$	21,798		$	14,370		$	36,357		$	58,155		$	72,525

5