Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MTRX | |
Entity Registrant Name | MATRIX SERVICE CO | |
Entity Central Index Key | 866273 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,719,203 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||||
Revenues | $314,155 | $381,516 | $978,718 | $918,731 |
Cost of revenues | 311,523 | 341,572 | 931,752 | 819,161 |
Gross profit | 2,632 | 39,944 | 46,966 | 99,570 |
Selling, general and administrative expenses | 17,080 | 21,125 | 56,538 | 55,172 |
Operating income (loss) | -14,448 | 18,819 | -9,572 | 44,398 |
Other income (expense): | ||||
Interest expense | -294 | -324 | -946 | -898 |
Interest income | 40 | 44 | 390 | 57 |
Other | 252 | 9 | 281 | -147 |
Income (loss) before income tax expense | -14,450 | 18,548 | -9,847 | 43,410 |
Provision for federal, state and foreign income taxes | -1,508 | 6,756 | 3,271 | 14,755 |
Net income (loss) | -12,942 | 11,792 | -13,118 | 28,655 |
Less: Net income (loss) attributable to noncontrolling interest | -9,983 | 396 | -19,359 | 401 |
Net income (loss) attributable to Matrix Service Company | ($2,959) | $11,396 | $6,241 | $28,254 |
Basic earnings per common share (US$ per share) | ($0.11) | $0.43 | $0.23 | $1.08 |
Diluted earnings per common share (US$ per share) | ($0.11) | $0.42 | $0.23 | $1.05 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 26,711 | 26,374 | 26,593 | 26,244 |
Diluted (shares) | 26,711 | 27,040 | 27,175 | 26,898 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | ($12,942) | $11,792 | ($13,118) | $28,655 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | -2,725 | -1,765 | -5,996 | -1,940 |
Comprehensive income (loss) | -15,667 | 10,027 | -19,114 | 26,715 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | -9,983 | 396 | -19,359 | 401 |
Comprehensive income (loss) attributable to Matrix Service Company | ($5,684) | $9,631 | $245 | $26,314 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $103,183 | $77,115 |
Accounts receivable, less allowances (March 31, 2015— $492 and June 30, 2014—$204) | 188,579 | 204,692 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 77,340 | 73,008 |
Deferred income taxes | 6,705 | 5,994 |
Inventories | 2,875 | 3,045 |
Income taxes receivable | 7,326 | 2,797 |
Other current assets | 6,831 | 8,897 |
Total current assets | 392,839 | 375,548 |
Property, plant and equipment at cost: | ||
Land and buildings | 31,935 | 31,737 |
Construction equipment | 86,304 | 82,745 |
Transportation equipment | 46,524 | 42,087 |
Office equipment and software | 26,968 | 26,026 |
Construction in progress | 6,266 | 9,892 |
Property, plant and equipment at cost, gross | 197,997 | 192,487 |
Accumulated depreciation | -112,234 | -103,315 |
Property, plant and equipment at cost, net | 85,763 | 89,172 |
Goodwill | 71,377 | 69,837 |
Other intangible assets | 25,156 | 28,676 |
Other assets | 3,871 | 5,699 |
Total assets | 579,006 | 568,932 |
Current liabilities: | ||
Accounts payable | 90,478 | 111,863 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 139,446 | 108,440 |
Accrued wages and benefits | 32,067 | 36,226 |
Accrued insurance | 8,946 | 8,605 |
Income taxes payable | 1,955 | 0 |
Other accrued expenses | 14,995 | 4,727 |
Total current liabilities | 287,887 | 269,861 |
Deferred income taxes | 5,484 | 5,167 |
Borrowings under senior credit facility | 9,934 | 11,621 |
Total liabilities | 303,305 | 286,649 |
Commitments and contingencies | ||
Matrix Service Company stockholders' equity: | ||
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2015, and June 30, 2014 | 279 | 279 |
Additional paid-in capital | 121,462 | 119,777 |
Retained earnings | 183,478 | 177,237 |
Accumulated other comprehensive loss | -6,178 | -182 |
Matrix Service Company stockholders' equity | 299,041 | 297,111 |
Less: Treasury stock, at cost— 1,173,656 shares as of March 31, 2015, and 1,453,770 shares as of June 30, 2014 | -13,550 | -16,595 |
Total Matrix Service Company stockholders’ equity | 285,491 | 280,516 |
Noncontrolling interest | -9,790 | 1,767 |
Total stockholders' equity | 275,701 | 282,283 |
Total liabilities and stockholders’ equity | $579,006 | $568,932 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $492 | $204 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 27,888,217 | 27,888,217 |
Treasury stock, shares | 1,173,656 | 1,453,770 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Cash Flows [Abstract] | ||
Proceeds from Noncontrolling Interests | $7,802 | $0 |
Operating activities: | ||
Net income (loss) | -13,118 | 28,655 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 17,332 | 12,945 |
Deferred income tax | -1,026 | -4,501 |
Gain on sale of property, plant and equipment | -305 | -39 |
Provision for uncollectible accounts | 419 | -81 |
Stock-based compensation expense | 4,730 | 3,905 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | -1,764 | -1,597 |
Other | 178 | 150 |
Changes in operating assets and liabilities increasing (decreasing) cash, net of effects from acquisitions: | ||
Accounts receivable | 17,353 | -58,955 |
Costs and estimated earnings in excess of billings on uncompleted contracts | -4,332 | -10,901 |
Inventories | 170 | -109 |
Other assets and liabilities | 2,425 | 7,335 |
Accounts payable | -23,025 | 38,734 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 31,006 | -4,684 |
Accrued expenses | 6,932 | 9,298 |
Net cash provided by operating activities | 36,975 | 20,155 |
Investing activities: | ||
Acquisition of property, plant and equipment | -11,075 | -17,834 |
Acquisition, net of cash acquired | -5,551 | -51,398 |
Proceeds from asset sales | 653 | 327 |
Net cash used by investing activities | -15,973 | -68,905 |
Financing activities: | ||
Issuances of common stock | 493 | 1,076 |
Excess tax benefit of exercised stock options and vesting of deferred shares | 1,764 | 1,597 |
Payments of Debt Issuance Costs | 0 | -507 |
Advances under credit agreement | 8,289 | 68,970 |
Repayments of advances under credit agreement | -9,976 | -23,867 |
Proceeds from issuance of common stock under employee stock purchase plan | 215 | 76 |
Repurchase of common stock for payment of statutory taxes due on equity-based compensation | -2,472 | -1,678 |
Net cash provided (used) by financing activities | 6,115 | 45,667 |
Effect of exchange rate changes on cash | -1,049 | -909 |
Net increase (decrease) in cash and cash equivalents | 26,068 | -3,992 |
Cash and cash equivalents, beginning of period | 77,115 | 63,750 |
Cash and cash equivalents, end of period | 103,183 | 59,758 |
Supplemental disclosure of cash flow information: | ||
Income taxes | 6,700 | 11,445 |
Interest | 1,019 | 579 |
Non-cash investing and financing activities: | ||
Purchases of property, plant and equipment on account | $1,104 | $965 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
In Thousands, unless otherwise specified | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2013 | $238,162 | $279 | $118,190 | $141,427 | ($21,961) | $227 | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 28,655 | 28,254 | 401 | ||||
Other comprehensive income (loss) | -1,940 | -1,940 | |||||
Payments to Acquire Interest in Joint Venture | 700 | 700 | |||||
Exercise of stock options | 1,076 | -1,057 | 2,133 | ||||
Tax effect of exercised stock options and vesting of deferred shares | 1,597 | 1,597 | |||||
Issuance of deferred shares | 0 | -4,482 | 4,482 | ||||
Treasury shares sold to Employee Stock Purchase Plan | 76 | 11 | 65 | ||||
Other treasury share purchases | -1,678 | -1,678 | |||||
Stock-based compensation expense | 3,905 | 3,905 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2014 | 270,553 | 279 | 118,164 | 169,681 | -16,959 | -1,713 | 1,101 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2014 | 282,283 | 279 | 119,777 | 177,237 | -16,595 | -182 | 1,767 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | -13,118 | 6,241 | -19,359 | ||||
Other comprehensive income (loss) | -5,996 | -5,996 | |||||
Exercise of stock options | 493 | -275 | 768 | ||||
Tax effect of exercised stock options and vesting of deferred shares | 1,764 | 1,764 | |||||
Issuance of deferred shares | 0 | -4,628 | 4,628 | ||||
Treasury shares sold to Employee Stock Purchase Plan | 215 | 94 | 121 | ||||
Other treasury share purchases | -2,472 | -2,472 | |||||
Stock-based compensation expense | 4,730 | 4,730 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 7,802 | 7,802 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2015 | $275,701 | $279 | $121,462 | $183,478 | ($13,550) | ($6,178) | ($9,790) |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Exercise of stock options, shares | 55,200 | 121,250 |
Employee Stock Purchase Plan, shares | 8,601 | 3,726 |
Issuance of deferred shares, shares | 318,763 | 254,720 |
Other treasury shares purchases, shares | 102,450 | 76,868 |
Basis_of_Presentation_Notes
Basis of Presentation (Notes) | 9 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Accounting Policies |
The condensed consolidated financial statements include the accounts of Matrix Service Company (“Matrix”, “we”, “our”, “us”, “its” or the “Company”) and its subsidiaries, unless otherwise indicated. Intercompany balances and transactions have been eliminated in consolidation. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, the information furnished reflects all adjustments, consisting of normal recurring adjustments and other adjustments described herein, that are, in the opinion of management, necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2014, included in the Company’s Annual Report on Form 10-K for the year then ended. | |
Recently Issued Accounting Standards | |
Accounting Standards Update 2014-09 (Topic 606), Revenue from Contracts with Customers | |
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU also requires entities to disclose both quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU’s disclosure requirements are significantly more comprehensive than those in existing revenue standards. The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification ("ASC"). | |
For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. We expect to adopt this standard in fiscal 2018 and are currently evaluating its expected impact on our financial statements. At its April 1, 2015, meeting, the FASB tentatively decided to defer for one year the effective date of the new revenue standard. If the FASB does in fact vote to pass the one year deferral, the Company would adopt this standard in fiscal 2019. | |
Accounting Standards Update 2014-08 (Topics 205 and 360), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |
On April 10, 2014, the FASB issued ASU 2014-08, which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued-operations criteria. The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The Company adopted this standard as of January 1, 2015. The adoption of this standard did not have a material impact on our consolidated financial statements. | |
Accounting Standards Update 2014-15 (Subtopic 205-40)—Presentation of Financial Statements—Going Concern : Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
On August 27, 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements. Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity, and consistency of related disclosures and improve convergence with international financial reporting standards ("IFRSs") (which emphasize management’s responsibility for performing the going-concern assessment). However, the time horizon for the assessment (look-forward period) and the disclosure thresholds under U.S. GAAP and IFRSs will continue to differ. The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; | |
early adoption is permitted. We expect to adopt this standard in fiscal 2017. |
Acquisitions_Notes
Acquisitions (Notes) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Acquisitions | Note 2 – Acquisitions | ||||
Purchase of HDB Ltd. Limited Partnership | |||||
On August 22, 2014, the Company purchased substantially all of the assets of HDB Ltd. Limited Partnership ("HDB"). HDB, headquartered in Bakersfield, California provides construction, fabrication and turnaround services to energy companies throughout California’s central valley. The acquisition advances a strategic goal of the Company to expand into the upstream energy market. The acquisition purchase price was $5.6 million and was funded with cash on hand. Commencing on August 22, 2014, HDB's operating results are included in the Oil Gas & Chemical Segment. | |||||
The purchase price was allocated to the major categories of assets and liabilities based on their estimated fair value at the acquisition date. The following table summarizes the preliminary purchase price allocation (in thousands): | |||||
Current assets | $ | 1,658 | |||
Property, plant and equipment | 1,001 | ||||
Tax deductible goodwill | 3,054 | ||||
Other intangible assets | 900 | ||||
Total assets acquired | 6,613 | ||||
Current liabilities | 1,062 | ||||
Net assets acquired | $ | 5,551 | |||
All of the recorded goodwill from the HDB acquisition is tax deductible. The operating data related to this acquisition was not material. | |||||
Purchase of Kvaerner North American Construction | |||||
Effective as of December 21, 2013, the Company acquired 100% of the stock and voting rights of Kvaerner North American Construction Ltd. and substantially all of the assets of Kvaerner North American Construction Inc,. together referenced as "KNAC". The businesses are now known as Matrix North American Construction Ltd. and Matrix North American Construction, Inc., together referenced as "Matrix NAC". Matrix NAC is a premier provider of maintenance and capital construction services to power generation, integrated iron and steel, and industrial process facilities. The acquisition significantly expanded the Company's presence in the Electrical Infrastructure and Industrial Segments, and to a lesser extent, the Oil Gas & Chemical segment. | |||||
The Company purchased KNAC for $88.3 million. The acquisition was funded through a combination of cash-on-hand and borrowings under our senior revolving credit facility. The purchase price was allocated to the major categories of assets and liabilities based on their estimated fair value at the acquisition date. The following table summarizes the purchase price allocation (in thousands): | |||||
Current assets | $ | 83,575 | |||
Property, plant and equipment | 11,377 | ||||
Goodwill | 39,295 | ||||
Other intangible assets | 24,009 | ||||
Total assets acquired | 158,256 | ||||
Current liabilities | 68,115 | ||||
Deferred income taxes | 1,179 | ||||
Noncontrolling interest of consolidated joint venture | 700 | ||||
Net assets acquired | 88,262 | ||||
Cash acquired | 36,655 | ||||
Net purchase price | $ | 51,607 | |||
Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. This acquisition generated $39.3 million of goodwill, of which $28.5 million is tax deductible. | |||||
The equity in consolidated joint venture represents the acquired equity in KVPB Power Partners. KVPB Power Partners was subsequently renamed to MXPB Power Partners (the "Joint Venture"). The Joint Venture was formed by Kvaerner North American Construction Inc. and an engineering firm to engineer and construct a combined cycle power plant in Dover, Delaware. The Company holds a 65% voting and economic interest in the Joint Venture. The total acquired equity of the Joint Venture was $2.0 million of which the Company's portion was approximately $1.3 million and the other party owns a non-controlling interest of $0.7 million. | |||||
The unaudited financial information in the table below for the nine months ended March 31, 2014 is presented on a pro forma basis, as though Matrix Service Company and Matrix NAC had been combined as of July 1, 2012. The pro forma earnings for the nine months ended March 31, 2014 were adjusted to include incremental amortization and depreciation expense of $2.1 million and $1.2 million, respectively. | |||||
Nine Months Ended | |||||
March 31, | |||||
2014 | |||||
(In thousands, except per share data) | |||||
Revenues | $ | 1,053,348 | |||
Net income attributable to Matrix Service Company | $ | 31,230 | |||
Basic earnings per common share | $ | 1.19 | |||
Diluted earnings per common share | $ | 1.16 | |||
Uncompleted_Contracts_Notes
Uncompleted Contracts (Notes) | 9 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure Customer Contracts Additional Information [Abstract] | ||||||||
Uncompleted Contracts | Uncompleted Contracts | |||||||
Contract terms of the Company’s construction contracts generally provide for progress billings based on project milestones. The excess of costs incurred and estimated earnings over amounts billed on uncompleted contracts is reported as a current asset. The excess of amounts billed over costs incurred and estimated earnings recognized on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows: | ||||||||
March 31, | June 30, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Costs incurred and estimated earnings recognized on uncompleted contracts | $ | 1,689,803 | $ | 1,435,242 | ||||
Billings on uncompleted contracts | 1,751,909 | 1,470,674 | ||||||
$ | (62,106 | ) | $ | (35,432 | ) | |||
Shown on balance sheet as: | ||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 77,340 | $ | 73,008 | ||||
Billings on uncompleted contracts in excess of costs and estimated earnings | 139,446 | 108,440 | ||||||
$ | (62,106 | ) | $ | (35,432 | ) | |||
Progress billings in accounts receivable at March 31, 2015 and June 30, 2014 included retentions to be collected within one year of $32.1 million and $30.0 million, respectively. Contract retentions collectible beyond one year are included in Other Assets on the Condensed Consolidated Balance Sheet and totaled $2.7 million at March 31, 2015 and $4.3 million at June 30, 2014. | ||||||||
Other | ||||||||
In the three month and nine months ended March 31, 2015, our results of operations were materially impacted by charges resulting from a change in estimate related to an acquired EPC joint venture project in the Electrical Infrastructure segment, as described in Note 2 - Acquisitions. The charges resulted in a reduction to operating income of $28.5 million and $54.7 million and an after-tax reduction of $9.7 million and $18.7 million to net income attributable to Matrix Service Company for the three and nine months ended March 31, 2015, respectively. The charge was a result of labor compression and productivity losses, as well as technical issues that have created continued rework, installation and commissioning complexity, all of which has pushed the completion date beyond the previous forecast. The Company expects the project to be substantially completed by the end of the current fiscal year. | ||||||||
In the nine months ended March 31, 2014, our results of operations were materially impacted by a charge resulting from a change in estimate on an aboveground storage tank project. The charge resulted in a $5.4 million decrease in operating income for the nine months ended March 31, 2014. |
Intangible_Assets_Including_Go
Intangible Assets Including Goodwill (Notes) | 9 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Intangible Assets Including Goodwill | Intangible Assets Including Goodwill | |||||||||||||||||||
Goodwill | ||||||||||||||||||||
The changes in the carrying value of goodwill by segment are as follows: | ||||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Total | ||||||||||||||||
Infrastructure | Chemical | Solutions | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Goodwill | $ | 60,896 | $ | 13,943 | $ | 10,949 | $ | 9,049 | $ | 94,837 | ||||||||||
Cumulative impairment loss (1) | (17,653 | ) | (3,000 | ) | (922 | ) | (3,425 | ) | (25,000 | ) | ||||||||||
Net balance at June 30, 2014 | 43,243 | 10,943 | 10,027 | 5,624 | 69,837 | |||||||||||||||
Acquisition related adjustment | 175 | — | — | 44 | 219 | |||||||||||||||
Acquisition of HDB (2) | — | 3,054 | — | — | 3,054 | |||||||||||||||
Translation adjustment (3) | (1,072 | ) | — | (395 | ) | (266 | ) | (1,733 | ) | |||||||||||
Net balance at March 31, 2015 | $ | 42,346 | $ | 13,997 | $ | 9,632 | $ | 5,402 | $ | 71,377 | ||||||||||
-1 | A $25.0 million impairment charge was recorded in February 2005 as a result of the Company’s operating performance in fiscal 2005. | |||||||||||||||||||
-2 | Amount represents goodwill in connection with the Company's acquisition of HDB. The acquisition is discussed further in Note 2 - Acquisitions. | |||||||||||||||||||
-3 | The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of a prior Canadian acquisition as well as the periodic translation of the Canadian entity acquired with the purchase of KNAC. The acquisition of KNAC is discussed further in Note 2 - Acquisitions. | |||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||
Information on the carrying value of other intangible assets is as follows: | ||||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||
Useful Life | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
(Years) | (In thousands) | |||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (1,045 | ) | $ | 1,415 | ||||||||||||
Customer based | 1.5 to 15 | 27,771 | (6,091 | ) | 21,680 | |||||||||||||||
Non-compete agreements | 3 to 5 | 1,354 | (730 | ) | 624 | |||||||||||||||
Trade names | 3 to 5 | 1,615 | (178 | ) | 1,437 | |||||||||||||||
Total amortizing intangible assets | 33,200 | (8,044 | ) | 25,156 | ||||||||||||||||
At June 30, 2014 | ||||||||||||||||||||
Useful Life | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
(Years) | (In thousands) | |||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (920 | ) | $ | 1,540 | ||||||||||||
Customer based | 1.5 to 15 | 27,662 | (2,949 | ) | 24,713 | |||||||||||||||
Non-compete agreements | 3 to 5 | 1,312 | (471 | ) | 841 | |||||||||||||||
Trade name | 5 | 165 | (33 | ) | 132 | |||||||||||||||
Total amortizing intangibles | 31,599 | (4,373 | ) | 27,226 | ||||||||||||||||
Trade name | Indefinite | 1,450 | — | 1,450 | ||||||||||||||||
Total intangible assets | $ | 33,049 | $ | (4,373 | ) | $ | 28,676 | |||||||||||||
The increase in the gross carrying amount of other intangible assets at March 31, 2015 compared to June 30, 2014 is due primarily to the August 22, 2014 acquisition of HDB. The HDB intangible asset consists of amortizing customer-based intangibles with a fair value of $0.9 million and useful life of 10 years. Please refer to Note 2 - Acquisitions for additional information. | ||||||||||||||||||||
Effective December 31, 2014, the Company redesignated a trade name with a value of $1.4 million from an indefinite lived to a definite lived intangible asset and assigned a useful life of three years. The change in designation was an impairment indicator. The Company conducted an impairment analysis and concluded that no impairment existed. | ||||||||||||||||||||
Amortization expense totaled $3.7 million in the nine months ended March 31, 2015 and $1.7 million in the nine months ended March 31, 2014. We estimate that the remaining amortization expense at March 31, 2015 will be as follows (in thousands): | ||||||||||||||||||||
Period ending: | ||||||||||||||||||||
Remainder of Fiscal 2015 | $ | 1,245 | ||||||||||||||||||
Fiscal 2016 | 3,326 | |||||||||||||||||||
Fiscal 2017 | 3,242 | |||||||||||||||||||
Fiscal 2018 | 2,901 | |||||||||||||||||||
Fiscal 2019 | 2,534 | |||||||||||||||||||
Fiscal 2020 | 2,534 | |||||||||||||||||||
Thereafter | 9,374 | |||||||||||||||||||
Total estimated remaining amortization expense at March 31, 2015 | 25,156 | |||||||||||||||||||
Debt_Notes
Debt (Notes) | 9 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
The Company has a five-year $200.0 million senior secured revolving credit facility under a credit agreement (the "Credit Agreement") that expires March 13, 2019. Advances under the credit facility may be used for working capital, acquisitions, capital expenditures, issuances of letters of credit and other lawful purposes. | ||||||||
The Credit Agreement includes the following covenants and borrowing limitations: | ||||||||
• | Our Senior Leverage Ratio, as defined in the agreement, may not exceed 2.50 to 1.00, determined as of the end of each fiscal quarter. | |||||||
• | We are required to maintain a Fixed Charge Coverage Ratio, as defined in the agreement, greater than or equal to 1.25 to 1.00, determined as of the end of each fiscal quarter. | |||||||
• | Asset dispositions (other than inventory and obsolete or unneeded equipment disposed of in the ordinary course of business) are limited to $20.0 million per 12-month period. | |||||||
Amounts borrowed under the Credit Agreement bear interest at LIBOR or an Alternate Base Rate, plus in each case, an additional margin based on the Senior Leverage Ratio. The additional margin on Alternate Base Rate and LIBOR-based loans ranges between 0.25% and 1.0% and between 1.25% and 2.0%, respectively. | ||||||||
The Credit Agreement also permits us to borrow in Canadian dollars with a sublimit of U.S. $40.0 million. Amounts borrowed in Canadian dollars will bear interest either at the CDOR Rate, plus an additional margin based on the Senior Leverage Ratio ranging from 1.25% to 2.0%, or at the Canadian Prime Rate, plus an additional margin based on the Senior Leverage Ratio ranging from 1.75% to 2.5%. The CDOR Rate is equal to the sum of the annual rate of interest, which is the rate determined as being the arithmetic average of the quotations of all institutions listed in respect of the relevant CDOR interest period for Canadian Dollar denominated bankers’ acceptances, plus 0.1%. The Canadian Prime Rate is equal to the greater of (i) the rate of interest per annum most recently announced or established by JPMorgan Chase Bank, N.A., Toronto Branch as its reference rate in effect on such day for determining interest rates for Canadian Dollar denominated commercial loans in Canada and (ii) the CDOR Rate plus 1.0%. | ||||||||
The Unused Credit Facility Fee is between 0.20% and 0.35% based on the Senior Leverage Ratio. | ||||||||
The Credit Agreement includes a Senior Leverage Ratio covenant, which provides that Consolidated Funded Indebtedness, as of the end of any fiscal quarter, may not exceed 2.5 times Consolidated EBITDA, as defined in the Credit Agreement, over the previous four quarters. For the four quarters ended March 31, 2015, Consolidated EBITDA, as defined in the Credit Agreement, was $53.0 million. Accordingly, at March 31, 2015, there was a restriction on our ability to access the full amount of the credit facility. Consolidated Funded Indebtedness at March 31, 2015 was $34.5 million. | ||||||||
Availability under the senior credit facility was as follows: | ||||||||
March 31, | June 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Senior credit facility | $ | 200,000 | $ | 200,000 | ||||
Capacity constraint due to the Senior Leverage Ratio | 67,528 | — | ||||||
Capacity under the credit facility | 132,472 | 200,000 | ||||||
Borrowings outstanding | 9,934 | 11,621 | ||||||
Letters of credit | 32,654 | 23,017 | ||||||
Availability under the senior credit facility | $ | 89,884 | $ | 165,362 | ||||
Outstanding borrowings at March 31, 2015 under our Credit Agreement were used for Canadian dollar advances required for short term working capital, including cross-border purchases of materials and services. | ||||||||
At March 31, 2015, the Company is in compliance with all affirmative, negative, and financial covenants under the Credit Agreement. |
Income_Taxes_Notes
Income Taxes (Notes) | 9 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Deferred income taxes are computed using the liability method whereby deferred tax assets and liabilities are recognized based on temporary differences between the financial and tax basis of assets and liabilities using presently enacted tax rates. Deferred tax assets are reduced by a valuation allowance when a determination is made that it is more likely than not that some, or all, of the deferred tax assets will not be realized based on the weight of all available evidence. Evidence which is objectively verifiable carries a higher weight in the analysis. The ultimate realization of deferred tax assets is dependent upon the existence of sufficient taxable income of the appropriate character within the carryback and carryforward period available under the tax law. Sources of taxable income include future reversals of existing taxable temporary differences, future earnings and available tax planning strategies. | |
The Company provides for income taxes regardless of whether it has received a tax assessment. Taxes are provided when it is considered probable that additional taxes will be due in excess of amounts included in the tax return. The Company regularly reviews exposure to additional income taxes due, and as further information is known or events occur, adjustments may be recorded. | |
For the three and nine month periods ending March 31, 2015, the Company's effective tax rates vary significantly from the statutory rates. The primary reason for the significant variation between the Company's effective tax rate and the statutory tax rate is due to charges the Company took in connection with an acquired EPC joint venture project, as described in Note 3 - Uncompleted Contracts. The Company consolidates the joint venture and reports a noncontrolling interest. Accordingly, the Company does not receive a tax benefit for the noncontrolling interest holder's share of the project loss. |
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 9 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Insurance Reserves | |
The Company maintains insurance coverage for various aspects of its operations. However, exposure to potential losses is retained through the use of deductibles, self-insured retentions and coverage limits. | |
Typically our contracts require us to indemnify our customers for injury, damage or loss arising from the performance of our services and provide warranties for materials and workmanship. The Company may also be required to name the customer as an additional insured up to the limits of insurance available, or we may be required to purchase special insurance policies or surety bonds for specific customers or provide letters of credit in lieu of bonds to satisfy performance and financial guarantees on some projects. Matrix maintains a performance and payment bonding line sufficient to support the business. The Company generally requires its subcontractors to indemnify the Company and the Company’s customer and name the Company as an additional insured for activities arising out of the subcontractors’ work. We also require certain subcontractors to provide additional insurance policies, including surety bonds in favor of the Company, to secure the subcontractors’ work or as required by the subcontract. | |
There can be no assurance that our insurance and the additional insurance coverage provided by our subcontractors will fully protect us against a valid claim or loss under the contracts with our customers. | |
Unapproved Change Orders and Claims | |
Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unapproved change orders and claims of $12.8 million at March 31, 2015 and $13.1 million at June 30, 2014. Generally, collection of amounts related to unapproved change orders and claims is expected within twelve months. However, since customers may not pay these amounts until final resolution of related claims, collection of these amounts may extend beyond one year. | |
Other | |
The Company and its subsidiaries are participants in various legal actions. It is the opinion of management that none of the known legal actions will have a material impact on the Company’s financial position, results of operations or liquidity. |
Earnings_per_Common_Share_Note
Earnings per Common Share (Notes) | 9 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings per Common Share | Earnings per Common Share | |||||||||||||||
Basic earnings per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) includes the dilutive effect of stock options and nonvested deferred shares. | ||||||||||||||||
The computation of basic and diluted earnings per share is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Basic EPS: | ||||||||||||||||
Net income (loss) attributable to Matrix Service Company | $ | (2,959 | ) | $ | 11,396 | $ | 6,241 | $ | 28,254 | |||||||
Weighted average shares outstanding | 26,711 | 26,374 | 26,593 | 26,244 | ||||||||||||
Basic EPS | $ | (0.11 | ) | $ | 0.43 | $ | 0.23 | $ | 1.08 | |||||||
Diluted EPS: | ||||||||||||||||
Weighted average shares outstanding – basic | 26,711 | 26,374 | 26,593 | 26,244 | ||||||||||||
Dilutive stock options | — | 187 | 117 | 176 | ||||||||||||
Dilutive nonvested deferred shares | — | 479 | 465 | 478 | ||||||||||||
Diluted weighted average shares | 26,711 | 27,040 | 27,175 | 26,898 | ||||||||||||
Diluted EPS | $ | (0.11 | ) | $ | 0.42 | $ | 0.23 | $ | 1.05 | |||||||
Since the net income attributable to Matrix Service Company was negative, neither the options or nonvested deferred shares are dilutive, accordingly, are excluded from the earnings per share calculations for the three months ended March 31, 2015, | ||||||||||||||||
The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Nonvested deferred shares | 268 | — | 139 | 15 | ||||||||||||
Segment_Information_Notes
Segment Information (Notes) | 9 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
We operate our business through four reportable segments: Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions, and Industrial. | ||||||||||||||||
The Electrical Infrastructure segment primarily encompasses construction and maintenance services to a variety of power generation facilities, such as combined cycle plants, natural gas fired power stations, and renewable energy installations. We also provide high voltage services to investor owned utilities, including construction of new substations, upgrades of existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services. | ||||||||||||||||
The Oil Gas & Chemical segment includes our traditional turnaround activities, plant maintenance services and construction in the downstream petroleum industry. Another key offering is industrial cleaning services, which include hydroblasting, hydroexcavating, chemical cleaning and vacuum services. We also perform work in the petrochemical, natural gas, gas processing and compression, and upstream petroleum markets. | ||||||||||||||||
The Storage Solutions segment includes new construction of crude and refined products aboveground storage tanks (“ASTs”), as well as planned and emergency maintenance services. Also included in the Storage Solutions segment is work related to specialty storage tanks, including liquefied natural gas (“LNG”), liquid nitrogen/liquid oxygen (“LIN/LOX”), liquid petroleum (“LPG”) tanks and other specialty vessels, including spheres. We also offer AST products including floating roof seals. Finally, the Storage Solutions segment includes balance of plant work in storage terminals and tank farms. | ||||||||||||||||
The Industrial segment includes construction and maintenance work in the iron and steel and mining and minerals industries, bulk material handling and fertilizer production facilities, as well as work for clients in other industrial markets. | ||||||||||||||||
The Company evaluates performance and allocates resources based on operating income. The accounting policies of the reportable segments are the same as those described in the Summary of Significant Accounting Policies footnote included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2014. Intersegment sales and transfers are recorded at cost; therefore, no intercompany profit or loss is recognized. | ||||||||||||||||
Segment assets consist primarily of accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, property, plant and equipment, goodwill and other intangible assets. | ||||||||||||||||
Results of Operations | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Gross revenues | ||||||||||||||||
Electrical Infrastructure | $ | 48,228 | $ | 62,144 | $ | 162,434 | $ | 132,201 | ||||||||
Oil Gas & Chemical | 97,612 | 63,112 | 228,230 | 188,025 | ||||||||||||
Storage Solutions | 107,640 | 182,129 | 370,977 | 471,330 | ||||||||||||
Industrial | 64,841 | 74,577 | 224,173 | 128,398 | ||||||||||||
Total gross revenues | $ | 318,321 | $ | 381,962 | $ | 985,814 | $ | 919,954 | ||||||||
Less: Inter-segment revenues | ||||||||||||||||
Electrical Infrastructure | $ | — | $ | — | $ | — | $ | — | ||||||||
Oil Gas & Chemical | 1,854 | 118 | 3,656 | 425 | ||||||||||||
Storage Solutions | 477 | 328 | 718 | 798 | ||||||||||||
Industrial | 1,835 | — | 2,722 | — | ||||||||||||
Total inter-segment revenues | $ | 4,166 | $ | 446 | $ | 7,096 | $ | 1,223 | ||||||||
Consolidated revenues | ||||||||||||||||
Electrical Infrastructure | $ | 48,228 | $ | 62,144 | $ | 162,434 | $ | 132,201 | ||||||||
Oil Gas & Chemical | 95,758 | 62,994 | 224,574 | 187,600 | ||||||||||||
Storage Solutions | 107,163 | 181,801 | 370,259 | 470,532 | ||||||||||||
Industrial | 63,006 | 74,577 | 221,451 | 128,398 | ||||||||||||
Total consolidated revenues | $ | 314,155 | $ | 381,516 | $ | 978,718 | $ | 918,731 | ||||||||
Gross profit (loss) | ||||||||||||||||
Electrical Infrastructure | $ | (22,429 | ) | $ | 5,971 | $ | (38,976 | ) | $ | 13,155 | ||||||
Oil Gas & Chemical | 7,261 | 7,397 | 18,999 | 21,614 | ||||||||||||
Storage Solutions | 11,247 | 19,269 | 39,996 | 51,894 | ||||||||||||
Industrial | 6,553 | 7,307 | 26,947 | 12,907 | ||||||||||||
Total gross profit | $ | 2,632 | $ | 39,944 | $ | 46,966 | $ | 99,570 | ||||||||
Operating income (loss) | ||||||||||||||||
Electrical Infrastructure | $ | (24,306 | ) | $ | 2,498 | $ | (46,484 | ) | $ | 4,658 | ||||||
Oil Gas & Chemical | 2,563 | 3,252 | 5,823 | 8,922 | ||||||||||||
Storage Solutions | 5,055 | 10,084 | 18,785 | 26,676 | ||||||||||||
Industrial | 2,240 | 2,985 | 12,304 | 4,142 | ||||||||||||
Total operating income | $ | (14,448 | ) | $ | 18,819 | $ | (9,572 | ) | $ | 44,398 | ||||||
Total assets by segment were as follows: | ||||||||||||||||
March 31, | June 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Electrical Infrastructure | $ | 112,685 | $ | 120,264 | ||||||||||||
Oil Gas & Chemical | 106,346 | 72,406 | ||||||||||||||
Storage Solutions | 156,367 | 200,493 | ||||||||||||||
Industrial | 109,056 | 105,049 | ||||||||||||||
Unallocated assets | 94,552 | 70,720 | ||||||||||||||
Total segment assets | $ | 579,006 | $ | 568,932 | ||||||||||||
Income_Taxes_Policies
Income Taxes (Policies) | 9 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Deferred income taxes are computed using the liability method whereby deferred tax assets and liabilities are recognized based on temporary differences between the financial and tax basis of assets and liabilities using presently enacted tax rates. Deferred tax assets are reduced by a valuation allowance when a determination is made that it is more likely than not that some, or all, of the deferred tax assets will not be realized based on the weight of all available evidence. Evidence which is objectively verifiable carries a higher weight in the analysis. The ultimate realization of deferred tax assets is dependent upon the existence of sufficient taxable income of the appropriate character within the carryback and carryforward period available under the tax law. Sources of taxable income include future reversals of existing taxable temporary differences, future earnings and available tax planning strategies. |
The Company provides for income taxes regardless of whether it has received a tax assessment. Taxes are provided when it is considered probable that additional taxes will be due in excess of amounts included in the tax return. The Company regularly reviews exposure to additional income taxes due, and as further information is known or events occur, adjustments may be recorded. | |
For the three and nine month periods ending March 31, 2015, the Company's effective tax rates vary significantly from the statutory rates. The primary reason for the significant variation between the Company's effective tax rate and the statutory tax rate is due to charges the Company took in connection with an acquired EPC joint venture project, as described in Note 3 - Uncompleted Contracts. The Company consolidates the joint venture and reports a noncontrolling interest. Accordingly, the Company does not receive a tax benefit for the noncontrolling interest holder's share of the project loss. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Pro Forma Information | |||||
Nine Months Ended | |||||
March 31, | |||||
2014 | |||||
(In thousands, except per share data) | |||||
Revenues | $ | 1,053,348 | |||
Net income attributable to Matrix Service Company | $ | 31,230 | |||
Basic earnings per common share | $ | 1.19 | |||
Diluted earnings per common share | $ | 1.16 | |||
HDB, Inc. [Member] | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Schedule of Preliminary Purchase Price Allocation | |||||
Current assets | $ | 1,658 | |||
Property, plant and equipment | 1,001 | ||||
Tax deductible goodwill | 3,054 | ||||
Other intangible assets | 900 | ||||
Total assets acquired | 6,613 | ||||
Current liabilities | 1,062 | ||||
Net assets acquired | $ | 5,551 | |||
Kvaerner NAC | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Schedule of Preliminary Purchase Price Allocation | The following table summarizes the purchase price allocation (in thousands): | ||||
Current assets | $ | 83,575 | |||
Property, plant and equipment | 11,377 | ||||
Goodwill | 39,295 | ||||
Other intangible assets | 24,009 | ||||
Total assets acquired | 158,256 | ||||
Current liabilities | 68,115 | ||||
Deferred income taxes | 1,179 | ||||
Noncontrolling interest of consolidated joint venture | 700 | ||||
Net assets acquired | 88,262 | ||||
Cash acquired | 36,655 | ||||
Net purchase price | $ | 51,607 | |||
Uncompleted_Contracts_Tables
Uncompleted Contracts (Tables) | 9 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure Customer Contracts Additional Information [Abstract] | ||||||||
Gross and Net Amount of Uncompleted Contracts | Gross and net amounts on uncompleted contracts are as follows: | |||||||
March 31, | June 30, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Costs incurred and estimated earnings recognized on uncompleted contracts | $ | 1,689,803 | $ | 1,435,242 | ||||
Billings on uncompleted contracts | 1,751,909 | 1,470,674 | ||||||
$ | (62,106 | ) | $ | (35,432 | ) | |||
Shown on balance sheet as: | ||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 77,340 | $ | 73,008 | ||||
Billings on uncompleted contracts in excess of costs and estimated earnings | 139,446 | 108,440 | ||||||
$ | (62,106 | ) | $ | (35,432 | ) |
Intangible_Assets_Including_Go1
Intangible Assets Including Goodwill (Tables) | 9 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ||||||||||||||||||||
Period ending: | ||||||||||||||||||||
Remainder of Fiscal 2015 | $ | 1,245 | ||||||||||||||||||
Fiscal 2016 | 3,326 | |||||||||||||||||||
Fiscal 2017 | 3,242 | |||||||||||||||||||
Fiscal 2018 | 2,901 | |||||||||||||||||||
Fiscal 2019 | 2,534 | |||||||||||||||||||
Fiscal 2020 | 2,534 | |||||||||||||||||||
Thereafter | 9,374 | |||||||||||||||||||
Total estimated remaining amortization expense at March 31, 2015 | 25,156 | |||||||||||||||||||
Carrying Value of Goodwill by Segment | The changes in the carrying value of goodwill by segment are as follows: | |||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Total | ||||||||||||||||
Infrastructure | Chemical | Solutions | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Goodwill | $ | 60,896 | $ | 13,943 | $ | 10,949 | $ | 9,049 | $ | 94,837 | ||||||||||
Cumulative impairment loss (1) | (17,653 | ) | (3,000 | ) | (922 | ) | (3,425 | ) | (25,000 | ) | ||||||||||
Net balance at June 30, 2014 | 43,243 | 10,943 | 10,027 | 5,624 | 69,837 | |||||||||||||||
Acquisition related adjustment | 175 | — | — | 44 | 219 | |||||||||||||||
Acquisition of HDB (2) | — | 3,054 | — | — | 3,054 | |||||||||||||||
Translation adjustment (3) | (1,072 | ) | — | (395 | ) | (266 | ) | (1,733 | ) | |||||||||||
Net balance at March 31, 2015 | $ | 42,346 | $ | 13,997 | $ | 9,632 | $ | 5,402 | $ | 71,377 | ||||||||||
-1 | A $25.0 million impairment charge was recorded in February 2005 as a result of the Company’s operating performance in fiscal 2005. | |||||||||||||||||||
-2 | Amount represents goodwill in connection with the Company's acquisition of HDB. The acquisition is discussed further in Note 2 - Acquisitions. | |||||||||||||||||||
-3 | The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of a prior Canadian acquisition as well as the periodic translation of the Canadian entity acquired with the purchase of KNAC. The acquisition of KNAC is discussed further in Note 2 - Acquisitions. | |||||||||||||||||||
Carrying Value of Other Intangible Assets | Information on the carrying value of other intangible assets is as follows: | |||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||
Useful Life | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
(Years) | (In thousands) | |||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (1,045 | ) | $ | 1,415 | ||||||||||||
Customer based | 1.5 to 15 | 27,771 | (6,091 | ) | 21,680 | |||||||||||||||
Non-compete agreements | 3 to 5 | 1,354 | (730 | ) | 624 | |||||||||||||||
Trade names | 3 to 5 | 1,615 | (178 | ) | 1,437 | |||||||||||||||
Total amortizing intangible assets | 33,200 | (8,044 | ) | 25,156 | ||||||||||||||||
At June 30, 2014 | ||||||||||||||||||||
Useful Life | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
(Years) | (In thousands) | |||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (920 | ) | $ | 1,540 | ||||||||||||
Customer based | 1.5 to 15 | 27,662 | (2,949 | ) | 24,713 | |||||||||||||||
Non-compete agreements | 3 to 5 | 1,312 | (471 | ) | 841 | |||||||||||||||
Trade name | 5 | 165 | (33 | ) | 132 | |||||||||||||||
Total amortizing intangibles | 31,599 | (4,373 | ) | 27,226 | ||||||||||||||||
Trade name | Indefinite | 1,450 | — | 1,450 | ||||||||||||||||
Total intangible assets | $ | 33,049 | $ | (4,373 | ) | $ | 28,676 | |||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Availability Under the Senior Credit Facility | Availability under the senior credit facility was as follows: | |||||||
March 31, | June 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Senior credit facility | $ | 200,000 | $ | 200,000 | ||||
Capacity constraint due to the Senior Leverage Ratio | 67,528 | — | ||||||
Capacity under the credit facility | 132,472 | 200,000 | ||||||
Borrowings outstanding | 9,934 | 11,621 | ||||||
Letters of credit | 32,654 | 23,017 | ||||||
Availability under the senior credit facility | $ | 89,884 | $ | 165,362 | ||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Basic EPS: | ||||||||||||||||
Net income (loss) attributable to Matrix Service Company | $ | (2,959 | ) | $ | 11,396 | $ | 6,241 | $ | 28,254 | |||||||
Weighted average shares outstanding | 26,711 | 26,374 | 26,593 | 26,244 | ||||||||||||
Basic EPS | $ | (0.11 | ) | $ | 0.43 | $ | 0.23 | $ | 1.08 | |||||||
Diluted EPS: | ||||||||||||||||
Weighted average shares outstanding – basic | 26,711 | 26,374 | 26,593 | 26,244 | ||||||||||||
Dilutive stock options | — | 187 | 117 | 176 | ||||||||||||
Dilutive nonvested deferred shares | — | 479 | 465 | 478 | ||||||||||||
Diluted weighted average shares | 26,711 | 27,040 | 27,175 | 26,898 | ||||||||||||
Diluted EPS | $ | (0.11 | ) | $ | 0.42 | $ | 0.23 | $ | 1.05 | |||||||
Antidilutive Securities Excluded from the Calculation of Diluted EPS | The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Nonvested deferred shares | 268 | — | 139 | 15 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Results of Operations | Results of Operations | |||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Gross revenues | ||||||||||||||||
Electrical Infrastructure | $ | 48,228 | $ | 62,144 | $ | 162,434 | $ | 132,201 | ||||||||
Oil Gas & Chemical | 97,612 | 63,112 | 228,230 | 188,025 | ||||||||||||
Storage Solutions | 107,640 | 182,129 | 370,977 | 471,330 | ||||||||||||
Industrial | 64,841 | 74,577 | 224,173 | 128,398 | ||||||||||||
Total gross revenues | $ | 318,321 | $ | 381,962 | $ | 985,814 | $ | 919,954 | ||||||||
Less: Inter-segment revenues | ||||||||||||||||
Electrical Infrastructure | $ | — | $ | — | $ | — | $ | — | ||||||||
Oil Gas & Chemical | 1,854 | 118 | 3,656 | 425 | ||||||||||||
Storage Solutions | 477 | 328 | 718 | 798 | ||||||||||||
Industrial | 1,835 | — | 2,722 | — | ||||||||||||
Total inter-segment revenues | $ | 4,166 | $ | 446 | $ | 7,096 | $ | 1,223 | ||||||||
Consolidated revenues | ||||||||||||||||
Electrical Infrastructure | $ | 48,228 | $ | 62,144 | $ | 162,434 | $ | 132,201 | ||||||||
Oil Gas & Chemical | 95,758 | 62,994 | 224,574 | 187,600 | ||||||||||||
Storage Solutions | 107,163 | 181,801 | 370,259 | 470,532 | ||||||||||||
Industrial | 63,006 | 74,577 | 221,451 | 128,398 | ||||||||||||
Total consolidated revenues | $ | 314,155 | $ | 381,516 | $ | 978,718 | $ | 918,731 | ||||||||
Gross profit (loss) | ||||||||||||||||
Electrical Infrastructure | $ | (22,429 | ) | $ | 5,971 | $ | (38,976 | ) | $ | 13,155 | ||||||
Oil Gas & Chemical | 7,261 | 7,397 | 18,999 | 21,614 | ||||||||||||
Storage Solutions | 11,247 | 19,269 | 39,996 | 51,894 | ||||||||||||
Industrial | 6,553 | 7,307 | 26,947 | 12,907 | ||||||||||||
Total gross profit | $ | 2,632 | $ | 39,944 | $ | 46,966 | $ | 99,570 | ||||||||
Operating income (loss) | ||||||||||||||||
Electrical Infrastructure | $ | (24,306 | ) | $ | 2,498 | $ | (46,484 | ) | $ | 4,658 | ||||||
Oil Gas & Chemical | 2,563 | 3,252 | 5,823 | 8,922 | ||||||||||||
Storage Solutions | 5,055 | 10,084 | 18,785 | 26,676 | ||||||||||||
Industrial | 2,240 | 2,985 | 12,304 | 4,142 | ||||||||||||
Total operating income | $ | (14,448 | ) | $ | 18,819 | $ | (9,572 | ) | $ | 44,398 | ||||||
Total assets by segment were as follows: | ||||||||||||||||
March 31, | June 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Electrical Infrastructure | $ | 112,685 | $ | 120,264 | ||||||||||||
Oil Gas & Chemical | 106,346 | 72,406 | ||||||||||||||
Storage Solutions | 156,367 | 200,493 | ||||||||||||||
Industrial | 109,056 | 105,049 | ||||||||||||||
Unallocated assets | 94,552 | 70,720 | ||||||||||||||
Total segment assets | $ | 579,006 | $ | 568,932 | ||||||||||||
Acquisitions_Details
Acquisitions (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 22, 2014 | Dec. 21, 2013 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $71,377 | $69,837 | |||
Net purchase price | 5,551 | 51,398 | |||
HDB, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Name of Acquired Entity | HDB Ltd. Limited Partnership ("HDB"). | ||||
Current assets | 1,658 | ||||
Property, plant and equipment | 1,001 | ||||
Other intangible assets | 900 | ||||
Total assets acquired | 6,613 | ||||
Current liabilities | 1,062 | ||||
Net assets acquired | 5,551 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 3,054 | ||||
Business Combination, Consideration Transferred | 5,551 | ||||
Kvaerner NAC | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Name of Acquired Entity | Kvaerner North American Construction Ltd. and substantially all of the assets of Kvaerner North American Construction Inc | ||||
Current assets | 83,575 | ||||
Property, plant and equipment | 11,377 | ||||
Goodwill | 39,295 | ||||
Other intangible assets | 24,009 | ||||
Total assets acquired | 158,256 | ||||
Current liabilities | 68,115 | ||||
Deferred income taxes | 1,179 | ||||
Noncontrolling interest of consolidated joint venture | 700 | ||||
Net assets acquired | 88,262 | ||||
Cash acquired | 36,655 | ||||
Net purchase price | 51,607 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 28,500 | ||||
Business Combination, Consideration Transferred | $88,300 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Dec. 21, 2013 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $71,377,000 | $71,377,000 | $69,837,000 | |||||
Revenues | 314,155,000 | 381,516,000 | 978,718,000 | 918,731,000 | ||||
Operating income | -14,448,000 | 18,819,000 | -9,572,000 | 44,398,000 | ||||
HDB, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | 22-Aug-14 | |||||||
Business Acquisition, Name of Acquired Entity | HDB Ltd. Limited Partnership ("HDB"). | |||||||
Business Combination, Consideration Transferred | 5,551,000 | |||||||
Tax deductible goodwill | 3,054,000 | 3,054,000 | ||||||
Kvaerner NAC | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | 21-Dec-13 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||
Business Acquisition, Name of Acquired Entity | Kvaerner North American Construction Ltd. and substantially all of the assets of Kvaerner North American Construction Inc | |||||||
Business Combination, Consideration Transferred | 88,300,000 | |||||||
Goodwill | 39,295,000 | |||||||
Tax deductible goodwill | 28,500,000 | |||||||
Noncontrolling Interest, Description | The Joint Venture was formed by Kvaerner North American Construction Inc. and an engineering firm to engineer and construct a combined cycle power plant in Dover, Delaware. | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 65.00% | 65.00% | ||||||
mtrx_JointVentureValue | 2,000,000 | |||||||
mtrx_ControllingInterestOfJointVenture,Value | 1,300,000 | |||||||
Noncontrolling interest of consolidated joint venture | 700,000 | |||||||
SM Electric Trade Name [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Trade Names, Gross | $1,400,000 | $1,400,000 |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Kvaerner NAC | |
Business Acquisition [Line Items] | |
Revenues | $1,053,348 |
Net income attributable to Matrix Service Company | 31,230 |
Basic earnings per common share | $1.19 |
Diluted earnings per common share | $1.16 |
Adjustment for Amortization Expense [Member] | Matrix NAC | |
Business Acquisition [Line Items] | |
Net income attributable to Matrix Service Company | 2,100 |
Adjustment for Depreciation Expense [Member] | Matrix NAC | |
Business Acquisition [Line Items] | |
Net income attributable to Matrix Service Company | $1,200 |
Uncompleted_Contracts_Gross_an
Uncompleted Contracts - Gross and Net Amounts of Uncompleted Contracts (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Disclosure Customer Contracts Additional Information [Abstract] | ||
Costs incurred and estimated earnings recognized on uncompleted contracts | $1,689,803 | $1,435,242 |
Billings on uncompleted contracts | 1,751,909 | 1,470,674 |
Total | -62,106 | -35,432 |
Shown on balance sheet as: | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 77,340 | 73,008 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 139,446 | 108,440 |
Total | ($62,106) | ($35,432) |
Uncompleted_Contracts_Addition
Uncompleted Contracts - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Customer Contracts [Line Items] | ||||
Contract Receivable Retainage, Due in Next Twelve Months | $32.10 | $32.10 | $30 | |
Contract Receivable Retainage, Due after Next Twelve Months | 2.7 | 2.7 | 4.3 | |
Change In Accounting Estimate, Financial Effect, Operating Income | $28.50 | $54.70 | $5.40 | |
Change in Accounting Estimate, Financial Effect, Net Income | 9.7 | 18.7 |
Intangible_Assets_Including_Go2
Intangible Assets Including Goodwill - Carrying Value of Goodwill By Segment (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 | ||
Goodwill [Line Items] | ||||
Goodwill, Purchase Accounting Adjustments | $219 | |||
Goodwill, Acquired During Period | 3,054 | [1] | ||
Goodwill | 94,837 | |||
Cumulative impairment loss | -25,000 | [2] | ||
Goodwill | 71,377 | |||
Goodwill [Roll Forward] | ||||
Net balance at June 30, 2014 | 69,837 | |||
Translation adjustment | -1,733 | [3] | ||
Net balance at March 31, 2015 | 71,377 | |||
Electrical Infrastructure [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Purchase Accounting Adjustments | 175 | |||
Goodwill, Acquired During Period | 0 | [1] | ||
Goodwill | 60,896 | |||
Cumulative impairment loss | -17,653 | [2] | ||
Goodwill | 42,346 | |||
Goodwill [Roll Forward] | ||||
Net balance at June 30, 2014 | 43,243 | |||
Translation adjustment | -1,072 | [3] | ||
Net balance at March 31, 2015 | 42,346 | |||
Oil Gas & Chemical [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 3,054 | [1] | ||
Goodwill | 13,943 | |||
Cumulative impairment loss | -3,000 | [2] | ||
Goodwill | 13,997 | |||
Goodwill [Roll Forward] | ||||
Net balance at June 30, 2014 | 10,943 | |||
Translation adjustment | 0 | [3] | ||
Net balance at March 31, 2015 | 13,997 | |||
Storage Solutions [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 0 | [1] | ||
Goodwill | 10,949 | |||
Cumulative impairment loss | -922 | [2] | ||
Goodwill | 9,632 | |||
Goodwill [Roll Forward] | ||||
Net balance at June 30, 2014 | 10,027 | |||
Translation adjustment | -395 | [3] | ||
Net balance at March 31, 2015 | 9,632 | |||
Industrial [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Purchase Accounting Adjustments | 44 | |||
Goodwill, Acquired During Period | 0 | [1] | ||
Goodwill | 9,049 | |||
Cumulative impairment loss | -3,425 | [2] | ||
Goodwill | 5,402 | |||
Goodwill [Roll Forward] | ||||
Net balance at June 30, 2014 | 5,624 | |||
Translation adjustment | -266 | [3] | ||
Net balance at March 31, 2015 | $5,402 | |||
[1] | . The acquisition is discussed further in Note 2 - Acquisitions. | |||
[2] | A $25.0 million impairment charge was recorded in February 2005 as a result of the Company’s operating performance in fiscal 2005. | |||
[3] | The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of a prior Canadian acquisition as well as the periodic translation of the Canadian entity acquired with the purchase of KNAC |
Intangible_Assets_Including_Go3
Intangible Assets Including Goodwill - Carrying Value of Other Intangible Assets (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 33,200 | 31,599 |
Accumulated Amortization | -8,044 | -4,373 |
Net Carrying Amount | 25,156 | 27,226 |
Indefinite Trade Names | 1,450 | |
Total intangible assets, gross carrying amount | 33,049 | |
Total intangible assets, accumulated amortization | -4,373 | |
Total intangible assets, net carrying amount | 25,156 | 28,676 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,460 | 2,460 |
Accumulated Amortization | -1,045 | -920 |
Net Carrying Amount | 1,415 | 1,540 |
Intellectual Property [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years |
Intellectual Property [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 27,771 | 27,662 |
Accumulated Amortization | -6,091 | -2,949 |
Net Carrying Amount | 21,680 | 24,713 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year 6 months | 1 year 6 months |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,354 | 1,312 |
Accumulated Amortization | -730 | -471 |
Net Carrying Amount | 624 | 841 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,615 | 165 |
Accumulated Amortization | -178 | -33 |
Net Carrying Amount | 1,437 | 132 |
Intangible_Assets_Including_Go4
Intangible Assets Including Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Impairment charge | $25,000,000 | [1] | |||
Amortization expense | 3,700,000 | 1,700,000 | |||
2014 | 1,245,000 | 1,245,000 | |||
2015 | 3,242,000 | 3,242,000 | |||
2016 | 2,901,000 | 2,901,000 | |||
2017 | 2,534,000 | 2,534,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,534,000 | 2,534,000 | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 9,374,000 | 9,374,000 | |||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived Intangible Assets, Fair Value Disclosure | 900,000 | 900,000 | |||
SM Electric Trade Name [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-Lived Trade Names | $1,400,000 | $1,400,000 | |||
Minimum [Member] | Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | |||
Minimum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 1 year 6 months | 1 year 6 months | |||
Minimum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years | |||
Maximum [Member] | Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Maximum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Maximum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | 5 years | |||
[1] | A $25.0 million impairment charge was recorded in February 2005 as a result of the Company’s operating performance in fiscal 2005. |
Intangible_Assets_Including_Go5
Intangible Assets Including Goodwill Future Expected Amortization Expense (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Expected Remaining Amortization Expense [Abstract] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $1,245 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,326 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,242 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,901 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,534 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,534 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 9,374 | |
Finite-Lived Intangible Assets, Net | $25,156 | $27,226 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2014 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Credit Agreement Term | 5 years | |
Senior secured revolving credit facility | $200,000,000 | $200,000,000 |
mtrx_LineOfCreditFacilityExpirationDate | 13-Mar-19 | |
Senior Leverage Ratio, Maximum | 2.5 | |
Senior Leverage Ratio, Minimum | 1 | |
Fixed Charge Coverage Ratio, Maximum | 1.25 | |
Fixed Charge Coverage Ratio, Minimum | 1 | |
Limit on asset dispositions | 20,000,000 | |
Additional Margin on alternate base rate loans, Minimum | 0.25% | |
Additional Margin on alternate base rate loans, Maximum | 1.00% | |
Additional Margin on LIBOR loans, Minimum | 1.25% | |
Additional Margin on LIBOR loans, Maximum | 2.00% | |
Sublimit on Canadian dollar borrowings | 40,000,000 | |
Additional Margin on CDOR loans, Minimum | 1.25% | |
Additional Margin on CDOR loans, Maximum | 2.00% | |
Additional Margin on Canadian prime rate loans, Minimum | 1.75% | |
Additional Margin on Canadian prime rate loans, Maximum | 2.50% | |
CDOR Rate description | sum of the annual rate of interest, which is the rate determined as being the arithmetic average of the quotations of all institutions listed in respect of the relevant CDOR interest period for Canadian Dollar denominated bankers’ acceptances, plus 0.1% | |
Canadian prime rate description | greater of (i)Â the rate of interest per annum most recently announced or established by JPMorgan Chase Bank, N.A., Toronto Branch as its reference rate in effect on such day for determining interest rates for Canadian Dollar denominated commercial loans in Canada and (ii)Â the CDOR Rate plus 1.0%. | |
Maximum limit of consolidated funded indebtedness | 2.5 | |
Consolidated EBITDA as defined in the Credit Agreement | 53,000,000 | |
Consolidated funded indebtedness | $34,500,000 | |
Minimum [Member] | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Unused Credit Facility Fee | 0.20% | |
Maximum [Member] | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Unused Credit Facility Fee | 0.35% | |
CDOR Rate [Member] | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Basis spread on variable rate basis | 0.10% | |
Canadian Prime Rate [Member] | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Variable rate basis | CDOR | |
Basis spread on variable rate basis | 1.00% |
Debt_Availability_Under_The_Se
Debt - Availability Under The Senior Credit Facility (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Senior credit facility | $200,000 | $200,000 |
Capacity Constraint Due To Senior Leverage Ratio | 67,528 | 0 |
Line Of Credit Facility Maximum Borrowing Capacity After Consideration Of Capacity Constraint | 132,472 | 200,000 |
Line of Credit Facility, Amount Outstanding | 9,934 | 11,621 |
Letters of credit subject to the credit facility | 32,654 | 23,017 |
Availability under the senior credit facility | $89,884 | $165,362 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Unapproved change orders | $12.80 | $13.10 |
Earnings_per_Common_Share_Comp
Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic [Abstract] | ||||
Net income | ($2,959) | $11,396 | $6,241 | $28,254 |
Weighted average shares outstanding - basic (shares) | 26,711 | 26,374 | 26,593 | 26,244 |
Basic EPS (US$ per share) | ($0.11) | $0.43 | $0.23 | $1.08 |
Earnings Per Share, Diluted [Abstract] | ||||
Dilutive stock options | 0 | 187 | 117 | 176 |
Dilutive nonvested deferred shares | 0 | 479 | 465 | 478 |
Diluted weighted average shares (shares) | 26,711 | 27,040 | 27,175 | 26,898 |
Diluted EPS (US$ per share) | ($0.11) | $0.42 | $0.23 | $1.05 |
Earnings_per_Common_Share_Anti
Earnings per Common Share - Antidilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) (Nonvested Deferred Shares [Member]) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Nonvested Deferred Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities | 268 | 0 | 139 | 15 |
Segment_Information_Results_of
Segment Information - Results of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 21, 2013 |
Segment Reporting Information [Line Items] | ||||||
Gross revenues | $318,321 | $381,962 | $985,814 | $919,954 | ||
Consolidated revenues | 314,155 | 381,516 | 978,718 | 918,731 | ||
Gross profit | 2,632 | 39,944 | 46,966 | 99,570 | ||
Operating income | -14,448 | 18,819 | -9,572 | 44,398 | ||
Segment assets | 579,006 | 579,006 | 568,932 | |||
Goodwill | 71,377 | 71,377 | 69,837 | |||
Electrical Infrastructure [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 48,228 | 62,144 | 162,434 | 132,201 | ||
Consolidated revenues | 48,228 | 62,144 | 162,434 | 132,201 | ||
Gross profit | -22,429 | 5,971 | -38,976 | 13,155 | ||
Operating income | -24,306 | 2,498 | -46,484 | 4,658 | ||
Segment assets | 112,685 | 112,685 | 120,264 | |||
Goodwill | 42,346 | 42,346 | 43,243 | |||
Oil Gas & Chemical [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 97,612 | 63,112 | 228,230 | 188,025 | ||
Consolidated revenues | 95,758 | 62,994 | 224,574 | 187,600 | ||
Gross profit | 7,261 | 7,397 | 18,999 | 21,614 | ||
Operating income | 2,563 | 3,252 | 5,823 | 8,922 | ||
Segment assets | 106,346 | 106,346 | 72,406 | |||
Goodwill | 13,997 | 13,997 | 10,943 | |||
Storage Solutions [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 107,640 | 182,129 | 370,977 | 471,330 | ||
Consolidated revenues | 107,163 | 181,801 | 370,259 | 470,532 | ||
Gross profit | 11,247 | 19,269 | 39,996 | 51,894 | ||
Operating income | 5,055 | 10,084 | 18,785 | 26,676 | ||
Segment assets | 156,367 | 156,367 | 200,493 | |||
Goodwill | 9,632 | 9,632 | 10,027 | |||
Industrial [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 64,841 | 74,577 | 224,173 | 128,398 | ||
Consolidated revenues | 63,006 | 74,577 | 221,451 | 128,398 | ||
Gross profit | 6,553 | 7,307 | 26,947 | 12,907 | ||
Operating income | 2,240 | 2,985 | 12,304 | 4,142 | ||
Segment assets | 109,056 | 109,056 | 105,049 | |||
Goodwill | 5,402 | 5,402 | 5,624 | |||
Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment assets | 94,552 | 94,552 | 70,720 | |||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 4,166 | 446 | 7,096 | 1,223 | ||
Intersegment Eliminations [Member] | Electrical Infrastructure [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations [Member] | Oil Gas & Chemical [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 1,854 | 118 | 3,656 | 425 | ||
Intersegment Eliminations [Member] | Storage Solutions [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 477 | 328 | 718 | 798 | ||
Intersegment Eliminations [Member] | Industrial [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross revenues | 1,835 | 0 | 2,722 | 0 | ||
Kvaerner NAC | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill | $39,295 |