Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MTRX | |
Entity Registrant Name | MATRIX SERVICE CO | |
Entity Central Index Key | 866,273 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,538,320 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||
Revenues | $ 319,331 | $ 321,683 |
Cost of revenues | 284,747 | 293,304 |
Gross profit | 34,584 | 28,379 |
Selling, general and administrative expenses | 19,483 | 19,832 |
Operating income | 15,101 | 8,547 |
Other income (expense): | ||
Interest expense | (263) | (351) |
Interest income | 31 | 42 |
Other | (54) | 57 |
Income before income tax expense | 14,815 | 8,295 |
Provision for federal, state and foreign income taxes | 5,076 | 3,624 |
Net income | 9,739 | 4,671 |
Less: Net loss attributable to noncontrolling interest | (202) | (1,243) |
Net income attributable to Matrix Service Company | $ 9,941 | $ 5,914 |
Basic earnings per common share (US$ per share) | $ 0.38 | $ 0.22 |
Diluted earnings per common share (US$ per share) | $ 0.37 | $ 0.22 |
Weighted average common shares outstanding: | ||
Basic (shares) | 26,476 | 26,470 |
Diluted (shares) | 27,050 | 27,134 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,739 | $ 4,671 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments | (2,449) | (1,770) |
Comprehensive income | 7,290 | 2,901 |
Less: Comprehensive loss attributable to noncontrolling interest | (202) | (1,243) |
Comprehensive income attributable to Matrix Service Company | $ 7,492 | $ 4,144 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 69,180 | $ 79,239 |
Accounts receivable, less allowances (September 30, 2015— $895 and June 30, 2015—$561) | 182,634 | 199,149 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 83,604 | 86,071 |
Deferred income taxes | 7,274 | 8,298 |
Inventories | 2,863 | 2,773 |
Income taxes receivable | 459 | 579 |
Other current assets | 8,494 | 5,660 |
Total current assets | 354,508 | 381,769 |
Property, plant and equipment at cost: | ||
Land and buildings | 32,609 | 32,746 |
Construction equipment | 88,131 | 87,561 |
Transportation equipment | 47,196 | 47,468 |
Office equipment and software | 28,072 | 28,874 |
Construction in progress | 8,095 | 5,196 |
Property, plant and equipment at cost, gross | 204,103 | 201,845 |
Accumulated depreciation | (120,150) | (116,782) |
Property, plant and equipment at cost, net | 83,953 | 85,063 |
Goodwill | 70,940 | 71,518 |
Other intangible assets | 22,926 | 23,961 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 2,118 | 2,073 |
Other assets | 2,126 | 3,947 |
Total assets | 536,571 | 568,331 |
Current liabilities: | ||
Accounts payable | 99,759 | 125,792 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 75,275 | 96,704 |
Accrued wages and benefits | 22,719 | 26,725 |
Accrued insurance | 8,736 | 8,100 |
Income taxes payable | 4,494 | 3,268 |
Deferred Tax Liabilities, Net, Current | 863 | 473 |
Other accrued expenses | 5,686 | 6,498 |
Total current liabilities | 217,532 | 267,560 |
Deferred income taxes - noncurrent | 7,244 | 7,413 |
Borrowings under senior credit facility | 9,766 | 8,804 |
Total liabilities | $ 234,542 | $ 283,777 |
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 September 30, 2015, and June 30, 2015; 26,531,657 and 26,440,823 shares outstanding as of September 30, 2015 and June 30, 2015 | $ 279 | $ 279 |
Additional paid-in capital | 124,146 | 123,038 |
Retained earnings | 204,335 | 194,394 |
Accumulated other comprehensive loss | (8,375) | (5,926) |
Matrix Service Company stockholders' equity | 320,385 | 311,785 |
Less: Treasury stock, at cost— 1,356,560 shares as of September 30, 2015, and 1,447,394 shares as of June 30, 2015 | (17,845) | (18,489) |
Total Matrix Service Company stockholders’ equity | 302,540 | 293,296 |
Noncontrolling interest | (511) | (8,742) |
Total stockholders' equity | 302,029 | 284,554 |
Total liabilities and stockholders’ equity | $ 536,571 | $ 568,331 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Statement Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $ 895 | $ 561 |
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 | 1,356,560 | 1,447,394 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net income | $ 9,739 | $ 4,671 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 5,429 | 5,771 |
Deferred income tax | 1,380 | (1,994) |
Gain on sale of property, plant and equipment | (74) | (122) |
Provision for uncollectible accounts | 334 | 465 |
Stock-based compensation expense | 1,658 | 1,457 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | (20) | (660) |
Other | 60 | 59 |
Changes in operating assets and liabilities increasing (decreasing) cash, net of effects from acquisitions: | ||
Accounts receivable | 16,181 | 30,379 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,467 | (16,811) |
Inventories | (90) | 39 |
Other assets and liabilities | 293 | 10,726 |
Accounts payable | (26,197) | (17,531) |
Billings on uncompleted contracts in excess of costs and estimated earnings | (21,429) | (4,732) |
Accrued expenses | (4,182) | (6,605) |
Net cash provided (used) by operating activities | (14,451) | 5,112 |
Investing activities: | ||
Acquisition of property, plant and equipment | (3,941) | (3,656) |
Acquisition, net of cash acquired | 0 | (5,250) |
Proceeds from asset sales | 135 | 148 |
Net cash used by investing activities | (3,806) | (8,758) |
Financing activities: | ||
Proceeds from Noncontrolling Interests | 8,433 | 0 |
Issuances of common stock | 384 | 193 |
Excess tax benefit of exercised stock options and vesting of deferred shares | 20 | 660 |
Advances under credit agreement | 962 | 5,817 |
Repayments of advances under credit agreement | 0 | (6,094) |
Proceeds from issuance of common stock under employee stock purchase plan | 72 | 58 |
Repurchase of common stock for payment of statutory taxes due on equity-based compensation | (382) | (913) |
Net cash provided (used) by financing activities | 9,489 | (279) |
Effect of exchange rate changes on cash | (1,291) | (436) |
Net decrease in cash and cash equivalents | (10,059) | (4,361) |
Cash and cash equivalents, beginning of period | 79,239 | 77,115 |
Cash and cash equivalents, end of period | 69,180 | 72,754 |
Supplemental disclosure of cash flow information: | ||
Income taxes | 1,747 | (1,972) |
Interest | 311 | 524 |
Non-cash investing and financing activities: | ||
Purchases of property, plant and equipment on account | $ 603 | $ 370 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
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 | 4,671 | 5,914 | (1,243) | ||||
Other comprehensive income (loss) | (1,770) | (1,770) | |||||
Exercise of stock options | 193 | (213) | 406 | ||||
Tax effect of exercised stock options and vesting of deferred shares | 660 | 660 | |||||
Issuance of deferred shares | 0 | (1,579) | 1,579 | ||||
Treasury shares sold to Employee Stock Purchase Plan | 58 | 27 | 31 | ||||
Other treasury share purchases | (913) | (913) | |||||
Stock-based compensation expense | 1,457 | 1,457 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2014 | 286,639 | 279 | 120,129 | 183,151 | (15,492) | (1,952) | 524 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2015 | 284,554 | 279 | 123,038 | 194,394 | (18,489) | (5,926) | (8,742) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,739 | 9,941 | (202) | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 8,433 | 8,433 | |||||
Other comprehensive income (loss) | (2,449) | (2,449) | |||||
Exercise of stock options | 384 | (15) | 399 | ||||
Tax effect of exercised stock options and vesting of deferred shares | 20 | 20 | |||||
Issuance of deferred shares | 0 | (590) | 590 | ||||
Treasury shares sold to Employee Stock Purchase Plan | 72 | 35 | 37 | ||||
Other treasury share purchases | (382) | (382) | |||||
Stock-based compensation expense | 1,658 | 1,658 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2015 | $ 302,029 | $ 279 | $ 124,146 | $ 204,335 | $ (17,845) | $ (8,375) | $ (511) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Exercise of stock options, shares | 43,137 | 23,100 |
Employee Stock Purchase Plan, shares | 3,993 | 1,790 |
Issuance of deferred shares, shares | 63,809 | 89,738 |
Other treasury shares purchases, shares | 20,105 | 33,304 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Sep. 30, 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, 2015 , 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"). In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year. With the deferral, this ASU is now effective for annual reporting periods beginning after December 15, 2017, with early adoption now permitted on a limited basis. Upon adoption, the Company may elect one of two application methods, a full retrospective application or a modified retrospective application. We expect to adopt this standard on July 1, 2018 and are currently evaluating its expected impact on our 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. Accounting Standards Update 2015-15—Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update) On August 16, 2015, the FASB issued ASU 2015-15 to clarify the Securities and Exchange Commission ("SEC") staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on this topic in ASU 2015-03. The SEC has announced that it would “not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement.” For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We expect to adopt this standard in fiscal 2017. The adoption of this standard will have no impact on the Company's presentation of debt issuance costs. Accounting Standards Update 2015-16—Business Combinations (Topic 805)— Simplifying the Accounting for Measurement-Period Adjustments On September 25, 2015, the FASB issued ASU 2015-16 to simplify the accounting for measurement-period adjustments. The ASU was issued in response to stakeholder feedback that restatements of prior periods to reflect adjustments made to provisional amounts recognized in a business combination increase the cost and complexity of financial reporting but do not significantly improve the usefulness of the information. Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU also requires acquirers to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. We expect to adopt this standard in fiscal 2017. |
Acquisitions (Notes)
Acquisitions (Notes) | 3 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisition 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 $5.3 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 purchase price allocation (in thousands): Current assets $ 1,658 Property, plant and equipment 1,162 Tax deductible goodwill 2,586 Other intangible assets 900 Total assets acquired 6,306 Current liabilities 1,056 Net assets acquired $ 5,250 All of the recorded goodwill from the HDB acquisition is tax deductible. The operating data related to this acquisition was not material. |
Uncompleted Contracts (Notes)
Uncompleted Contracts (Notes) | 3 Months Ended |
Sep. 30, 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: September 30, June 30, (in thousands) Costs incurred and estimated earnings recognized on uncompleted contracts $ 1,744,572 $ 1,633,780 Billings on uncompleted contracts 1,736,243 1,644,413 $ 8,329 $ (10,633 ) Shown on balance sheet as: Costs and estimated earnings in excess of billings on uncompleted contracts $ 83,604 $ 86,071 Billings on uncompleted contracts in excess of costs and estimated earnings 75,275 96,704 $ 8,329 $ (10,633 ) Progress billings in accounts receivable at September 30, 2015 and June 30, 2015 included retentions to be collected within one year of $26.3 million and $25.2 million , respectively. Contract retentions collectible beyond one year are included in Other Assets on the Condensed Consolidated Balance Sheet and totaled $1.0 million at September 30, 2015 and $2.8 million at June 30, 2015 . Other In the three months ended September 30, 2014 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. The charges resulted in a reduction to operating income of $3.3 million and an after-tax reduction of $1.3 million to net income attributable to Matrix Service Company. The Company reached substantial completion in the fourth quarter of fiscal 2015 on the project and is currently working through project closeout. |
Intangible Assets Including Goo
Intangible Assets Including Goodwill (Notes) | 3 Months Ended |
Sep. 30, 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 Infrastructure Oil Gas & Chemical Storage Solutions Industrial Total (In thousands) Goodwill $ 60,027 $ 17,008 $ 10,586 $ 8,897 $ 96,518 Cumulative impairment loss (1) (17,653 ) (3,000 ) (922 ) (3,425 ) (25,000 ) Net balance at June 30, 2015 42,374 14,008 9,664 5,472 71,518 Translation adjustment (2) (376 ) — (131 ) (71 ) (578 ) Net balance at September 30, 2015 $ 41,998 $ 14,008 $ 9,533 $ 5,401 $ 70,940 (1) A $25.0 million impairment charge was recorded in February 2005. (2) The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of prior Canadian acquisitions. Other Intangible Assets Information on the carrying value of other intangible assets is as follows: At September 30, 2015 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 6 to 15 $ 2,460 $ (1,127 ) $ 1,333 Customer based 1.5 to 15 27,566 (7,631 ) 19,935 Non-compete agreements 4 to 5 1,354 (874 ) 480 Trade names 3 to 5 1,615 (437 ) 1,178 Total amortizing intangible assets $ 32,995 $ (10,069 ) $ 22,926 At June 30, 2015 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 6 to 15 $ 2,460 $ (1,086 ) $ 1,374 Customer based 1.5 to 15 27,837 (7,109 ) 20,728 Non-compete agreements 4 to 5 1,354 (802 ) 552 Trade name 3 to 5 1,615 (308 ) 1,307 Total amortizing intangible assets $ 33,266 $ (9,305 ) $ 23,961 Amortization expense totaled $0.8 million in the three months ended September 30, 2015 and $1.2 million in the three months ended September 30, 2014. We estimate that the remaining amortization expense at September 30, 2015 will be as follows (in thousands): Period ending: Remainder of Fiscal 2016 $ 2,471 Fiscal 2017 3,216 Fiscal 2018 2,876 Fiscal 2019 2,509 Fiscal 2020 2,509 Fiscal 2021 2,506 Thereafter 6,839 Total estimated remaining amortization expense at September 30, 2015 $ 22,926 |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Sep. 30, 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 September 30, 2015 , Consolidated EBITDA, as defined in the Credit Agreement, was $63.3 million . Accordingly, at September 30, 2015 , there was a restriction on our ability to access the full amount of the credit facility. Consolidated Funded Indebtedness at September 30, 2015 was $25.1 million . Availability under the senior credit facility was as follows: September 30, June 30, (In thousands) Senior credit facility $ 200,000 $ 200,000 Capacity constraint due to the Senior Leverage Ratio 41,723 54,968 Capacity under the credit facility 158,277 145,032 Borrowings outstanding 9,766 8,804 Letters of credit 23,342 40,587 Availability under the senior credit facility $ 125,169 $ 95,641 Outstanding borrowings at September 30, 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 September 30, 2015 , the Company is in compliance with all affirmative, negative, and financial covenants under the Credit Agreement. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We use the asset and liability approach for financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances based on our judgments and estimates are established when necessary to reduce deferred tax assets to the amount expected to be realized in future operating results. Company management believes that realization of deferred tax assets in excess of the valuation allowance is more likely than not. Our estimates are based on facts and circumstances in existence as well as interpretations of existing tax regulations and laws applied to the facts and circumstances. 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. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Sep. 30, 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 $13.1 million at September 30, 2015 and $12.7 million at June 30, 2015 . 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) | 3 Months Ended |
Sep. 30, 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 September 30, September 30, (In thousands, except per share data) Basic EPS: Net income attributable to Matrix Service Company $ 9,941 $ 5,914 Weighted average shares outstanding 26,476 26,470 Basic EPS $ 0.38 $ 0.22 Diluted EPS: Weighted average shares outstanding – basic 26,476 26,470 Dilutive stock options 86 147 Dilutive nonvested deferred shares 488 517 Diluted weighted average shares 27,050 27,134 Diluted EPS $ 0.37 $ 0.22 The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended September 30, September 30, (In thousands) Nonvested deferred shares 56 63 |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Sep. 30, 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. The Storage Solutions segment also includes balance of plant work in storage terminals and tank farms. 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. Finally, we offer AST products, including floating roof seals. 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, 2015 . 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 September 30, September 30, Gross revenues Electrical Infrastructure $ 65,625 $ 55,673 Oil Gas & Chemical 68,959 54,199 Storage Solutions 144,570 133,350 Industrial 41,335 79,360 Total gross revenues $ 320,489 $ 322,582 Less: Inter-segment revenues Electrical Infrastructure $ — $ — Oil Gas & Chemical 648 840 Storage Solutions 334 59 Industrial 176 — Total inter-segment revenues $ 1,158 $ 899 Consolidated revenues Electrical Infrastructure $ 65,625 $ 55,673 Oil Gas & Chemical 68,311 53,359 Storage Solutions 144,236 133,291 Industrial 41,159 79,360 Total consolidated revenues $ 319,331 $ 321,683 Gross profit (loss) Electrical Infrastructure $ 4,708 $ (489 ) Oil Gas & Chemical 5,683 4,386 Storage Solutions 20,232 14,518 Industrial 3,961 9,964 Total gross profit $ 34,584 $ 28,379 Operating income (loss) Electrical Infrastructure $ 1,200 $ (3,656 ) Oil Gas & Chemical 1,416 578 Storage Solutions 11,549 7,103 Industrial 936 4,522 Total operating income $ 15,101 $ 8,547 Total assets by segment were as follows: September 30, June 30, Electrical Infrastructure $ 136,564 $ 129,725 Oil Gas & Chemical 101,988 108,960 Storage Solutions 172,900 172,857 Industrial 59,360 102,761 Unallocated assets 65,759 54,028 Total segment assets $ 536,571 $ 568,331 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
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 1,162 Tax deductible goodwill 2,586 Other intangible assets 900 Total assets acquired 6,306 Current liabilities 1,056 Net assets acquired $ 5,250 |
Uncompleted Contracts (Tables)
Uncompleted Contracts (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Disclosure Customer Contracts Additional Information [Abstract] | |
Gross and Net Amount of Uncompleted Contracts | Gross and net amounts on uncompleted contracts are as follows: September 30, June 30, (in thousands) Costs incurred and estimated earnings recognized on uncompleted contracts $ 1,744,572 $ 1,633,780 Billings on uncompleted contracts 1,736,243 1,644,413 $ 8,329 $ (10,633 ) Shown on balance sheet as: Costs and estimated earnings in excess of billings on uncompleted contracts $ 83,604 $ 86,071 Billings on uncompleted contracts in excess of costs and estimated earnings 75,275 96,704 $ 8,329 $ (10,633 ) |
Intangible Assets Including G20
Intangible Assets Including Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Period ending: Remainder of Fiscal 2016 $ 2,471 Fiscal 2017 3,216 Fiscal 2018 2,876 Fiscal 2019 2,509 Fiscal 2020 2,509 Fiscal 2021 2,506 Thereafter 6,839 Total estimated remaining amortization expense at September 30, 2015 $ 22,926 |
Carrying Value of Goodwill by Segment | The changes in the carrying value of goodwill by segment are as follows: Electrical Infrastructure Oil Gas & Chemical Storage Solutions Industrial Total (In thousands) Goodwill $ 60,027 $ 17,008 $ 10,586 $ 8,897 $ 96,518 Cumulative impairment loss (1) (17,653 ) (3,000 ) (922 ) (3,425 ) (25,000 ) Net balance at June 30, 2015 42,374 14,008 9,664 5,472 71,518 Translation adjustment (2) (376 ) — (131 ) (71 ) (578 ) Net balance at September 30, 2015 $ 41,998 $ 14,008 $ 9,533 $ 5,401 $ 70,940 (1) A $25.0 million impairment charge was recorded in February 2005. (2) The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of prior Canadian acquisitions. |
Carrying Value of Other Intangible Assets | Information on the carrying value of other intangible assets is as follows: At September 30, 2015 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 6 to 15 $ 2,460 $ (1,127 ) $ 1,333 Customer based 1.5 to 15 27,566 (7,631 ) 19,935 Non-compete agreements 4 to 5 1,354 (874 ) 480 Trade names 3 to 5 1,615 (437 ) 1,178 Total amortizing intangible assets $ 32,995 $ (10,069 ) $ 22,926 At June 30, 2015 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 6 to 15 $ 2,460 $ (1,086 ) $ 1,374 Customer based 1.5 to 15 27,837 (7,109 ) 20,728 Non-compete agreements 4 to 5 1,354 (802 ) 552 Trade name 3 to 5 1,615 (308 ) 1,307 Total amortizing intangible assets $ 33,266 $ (9,305 ) $ 23,961 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Availability Under the Senior Credit Facility | Availability under the senior credit facility was as follows: September 30, June 30, (In thousands) Senior credit facility $ 200,000 $ 200,000 Capacity constraint due to the Senior Leverage Ratio 41,723 54,968 Capacity under the credit facility 158,277 145,032 Borrowings outstanding 9,766 8,804 Letters of credit 23,342 40,587 Availability under the senior credit facility $ 125,169 $ 95,641 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, September 30, (In thousands, except per share data) Basic EPS: Net income attributable to Matrix Service Company $ 9,941 $ 5,914 Weighted average shares outstanding 26,476 26,470 Basic EPS $ 0.38 $ 0.22 Diluted EPS: Weighted average shares outstanding – basic 26,476 26,470 Dilutive stock options 86 147 Dilutive nonvested deferred shares 488 517 Diluted weighted average shares 27,050 27,134 Diluted EPS $ 0.37 $ 0.22 |
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 September 30, September 30, (In thousands) Nonvested deferred shares 56 63 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Results of Operations | Results of Operations (In thousands) Three Months Ended September 30, September 30, Gross revenues Electrical Infrastructure $ 65,625 $ 55,673 Oil Gas & Chemical 68,959 54,199 Storage Solutions 144,570 133,350 Industrial 41,335 79,360 Total gross revenues $ 320,489 $ 322,582 Less: Inter-segment revenues Electrical Infrastructure $ — $ — Oil Gas & Chemical 648 840 Storage Solutions 334 59 Industrial 176 — Total inter-segment revenues $ 1,158 $ 899 Consolidated revenues Electrical Infrastructure $ 65,625 $ 55,673 Oil Gas & Chemical 68,311 53,359 Storage Solutions 144,236 133,291 Industrial 41,159 79,360 Total consolidated revenues $ 319,331 $ 321,683 Gross profit (loss) Electrical Infrastructure $ 4,708 $ (489 ) Oil Gas & Chemical 5,683 4,386 Storage Solutions 20,232 14,518 Industrial 3,961 9,964 Total gross profit $ 34,584 $ 28,379 Operating income (loss) Electrical Infrastructure $ 1,200 $ (3,656 ) Oil Gas & Chemical 1,416 578 Storage Solutions 11,549 7,103 Industrial 936 4,522 Total operating income $ 15,101 $ 8,547 Total assets by segment were as follows: September 30, June 30, Electrical Infrastructure $ 136,564 $ 129,725 Oil Gas & Chemical 101,988 108,960 Storage Solutions 172,900 172,857 Industrial 59,360 102,761 Unallocated assets 65,759 54,028 Total segment assets $ 536,571 $ 568,331 |
Acquisitions (Details)
Acquisitions (Details) - HDB, Inc. [Member] $ in Thousands | Aug. 22, 2014USD ($) |
Business Acquisition [Line Items] | |
Business Acquisition, Name of Acquired Entity | HDB Ltd. Limited Partnership ("HDB"). |
Current assets | $ 1,658 |
Property, plant and equipment | 1,162 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 2,586 |
Other intangible assets | 900 |
Total assets acquired | 6,306 |
Current liabilities | 1,056 |
Net assets acquired | 5,250 |
Business Combination, Consideration Transferred | $ 5,250 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - HDB, Inc. [Member] $ in Thousands | Aug. 22, 2014USD ($) | Aug. 22, 2014USD ($) |
Business Acquisition [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Aug. 22, 2014 | |
Business Acquisition, Name of Acquired Entity | HDB Ltd. Limited Partnership ("HDB"). | |
Business Combination, Consideration Transferred | $ 5,250 | |
Tax deductible goodwill | $ 2,586 | $ 2,586 |
Uncompleted Contracts - Gross a
Uncompleted Contracts - Gross and Net Amounts of Uncompleted Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Disclosure Customer Contracts Additional Information [Abstract] | ||
Costs incurred and estimated earnings recognized on uncompleted contracts | $ 1,744,572 | $ 1,633,780 |
Billings on uncompleted contracts | 1,736,243 | 1,644,413 |
Total | 8,329 | (10,633) |
Shown on balance sheet as: | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 83,604 | 86,071 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 75,275 | 96,704 |
Total | $ 8,329 | $ (10,633) |
Uncompleted Contracts - Additio
Uncompleted Contracts - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | |
Customer Contracts [Line Items] | |||
Contract Receivable Retainage, Due in Next Twelve Months | $ 26.3 | $ 25.2 | |
Contract Receivable Retainage, Due after Next Twelve Months | $ 1 | $ 2.8 | |
Change In Accounting Estimate, Financial Effect, Operating Income | $ 3.3 | ||
Change in Accounting Estimate, Financial Effect, Net Income | 1.3 |
Intangible Assets Including G28
Intangible Assets Including Goodwill - Carrying Value of Goodwill By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | ||
Goodwill [Line Items] | |||
Goodwill | $ 96,518 | ||
Cumulative impairment loss | [1] | (25,000) | |
Goodwill | $ 71,518 | 71,518 | |
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 71,518 | ||
Translation adjustment | [2] | (578) | |
Net balance at September 30, 2015 | 70,940 | ||
Electrical Infrastructure [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 60,027 | ||
Cumulative impairment loss | [1] | (17,653) | |
Goodwill | 42,374 | 42,374 | |
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 42,374 | ||
Translation adjustment | [2] | (376) | |
Net balance at September 30, 2015 | 41,998 | ||
Oil Gas & Chemical [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 17,008 | ||
Cumulative impairment loss | [1] | (3,000) | |
Goodwill | 14,008 | 14,008 | |
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 14,008 | ||
Translation adjustment | 0 | ||
Net balance at September 30, 2015 | 14,008 | ||
Storage Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 10,586 | ||
Cumulative impairment loss | [1] | (922) | |
Goodwill | 9,664 | 9,664 | |
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 9,664 | ||
Translation adjustment | [2] | (131) | |
Net balance at September 30, 2015 | 9,533 | ||
Industrial [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 8,897 | ||
Cumulative impairment loss | [1] | (3,425) | |
Goodwill | 5,472 | $ 5,472 | |
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 5,472 | ||
Translation adjustment | [2] | (71) | |
Net balance at September 30, 2015 | $ 5,401 | ||
[1] | A $25.0 million impairment charge was recorded in February 2005. | ||
[2] | The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of prior Canadian acquisition |
Intangible Assets Including G29
Intangible Assets Including Goodwill - Carrying Value of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 32,995 | $ 33,266 |
Accumulated Amortization | (10,069) | (9,305) |
Net Carrying Amount | 22,926 | |
Total intangible assets, net carrying amount | 22,926 | 23,961 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,460 | 2,460 |
Accumulated Amortization | (1,127) | (1,086) |
Net Carrying Amount | $ 1,333 | $ 1,374 |
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 | $ 27,566 | $ 27,837 |
Accumulated Amortization | (7,631) | (7,109) |
Net Carrying Amount | $ 19,935 | $ 20,728 |
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 | $ 1,354 |
Accumulated Amortization | (874) | (802) |
Net Carrying Amount | $ 480 | $ 552 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | 4 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 | $ 1,615 |
Accumulated Amortization | (437) | (308) |
Net Carrying Amount | $ 1,178 | $ 1,307 |
Trade Names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years |
Trade Names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Intangible Assets Including G30
Intangible Assets Including Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment charge | [1] | $ 25 | ||
Amortization expense | $ 0.8 | $ 1.2 | ||
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 | 4 years | 4 years | ||
Minimum [Member] | Trade Names [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 | ||
Maximum [Member] | Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||
Maximum [Member] | Trade Names [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||
[1] | A $25.0 million impairment charge was recorded in February 2005. |
Intangible Assets Including G31
Intangible Assets Including Goodwill Future Expected Amortization Expense (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 2,471 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,216 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,876 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,509 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,509 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,506 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 6,839 |
Finite-Lived Intangible Assets, Net | $ 22,926 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Credit Agreement Term | 5 years | |
Senior secured revolving credit facility | $ 200,000 | $ 200,000 |
mtrx_LineOfCreditFacilityExpirationDate | Mar. 13, 2019 | |
Senior Leverage Ratio, Maximum | 2.50 | |
Senior Leverage Ratio, Minimum | 1 | |
Fixed Charge Coverage Ratio, Maximum | 1.25 | |
Fixed Charge Coverage Ratio, Minimum | 1 | |
Limit on asset dispositions | $ 20,000 | |
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 | |
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) 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%. | |
Maximum limit of consolidated funded indebtedness | 2.5 | |
Consolidated EBITDA as defined in the Credit Agreement | $ 63,300 | |
Consolidated funded indebtedness | $ 25,100 | |
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 S
Debt - Availability Under The Senior Credit Facility (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Debt Disclosure [Abstract] | ||
Senior credit facility | $ 200,000 | $ 200,000 |
Capacity Constraint Due To Senior Leverage Ratio | 41,723 | 54,968 |
Line Of Credit Facility Maximum Borrowing Capacity After Consideration Of Capacity Constraint | 158,277 | 145,032 |
Line of Credit Facility, Amount Outstanding | 9,766 | 8,804 |
Letters of credit subject to the credit facility | 23,342 | 40,587 |
Availability under the senior credit facility | $ 125,169 | $ 95,641 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unapproved change orders | $ 13.1 | $ 12.7 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share, Basic [Abstract] | ||
Net income | $ 9,941 | $ 5,914 |
Weighted average shares outstanding - basic (shares) | 26,476 | 26,470 |
Basic EPS (US$ per share) | $ 0.38 | $ 0.22 |
Earnings Per Share, Diluted [Abstract] | ||
Dilutive stock options | 86 | 147 |
Dilutive nonvested deferred shares | 488 | 517 |
Diluted weighted average shares (shares) | 27,050 | 27,134 |
Diluted EPS (US$ per share) | $ 0.37 | $ 0.22 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Nonvested Deferred Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive securities | 56 | 63 |
Segment Information - Results o
Segment Information - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Gross revenues | $ 320,489 | $ 322,582 | |
Consolidated revenues | 319,331 | 321,683 | |
Gross profit | 34,584 | 28,379 | |
Operating income | 15,101 | 8,547 | |
Segment assets | 536,571 | $ 568,331 | |
Goodwill | 70,940 | 71,518 | |
Electrical Infrastructure [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 65,625 | 55,673 | |
Consolidated revenues | 65,625 | 55,673 | |
Gross profit | 4,708 | (489) | |
Operating income | 1,200 | (3,656) | |
Segment assets | 136,564 | 129,725 | |
Goodwill | 41,998 | 42,374 | |
Oil Gas & Chemical [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 68,959 | 54,199 | |
Consolidated revenues | 68,311 | 53,359 | |
Gross profit | 5,683 | 4,386 | |
Operating income | 1,416 | 578 | |
Segment assets | 101,988 | 108,960 | |
Goodwill | 14,008 | 14,008 | |
Storage Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 144,570 | 133,350 | |
Consolidated revenues | 144,236 | 133,291 | |
Gross profit | 20,232 | 14,518 | |
Operating income | 11,549 | 7,103 | |
Segment assets | 172,900 | 172,857 | |
Goodwill | 9,533 | 9,664 | |
Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 41,335 | 79,360 | |
Consolidated revenues | 41,159 | 79,360 | |
Gross profit | 3,961 | 9,964 | |
Operating income | 936 | 4,522 | |
Segment assets | 59,360 | 102,761 | |
Goodwill | 5,401 | 5,472 | |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment assets | 65,759 | $ 54,028 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 1,158 | 899 | |
Intersegment Eliminations [Member] | Electrical Infrastructure [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 0 | 0 | |
Intersegment Eliminations [Member] | Oil Gas & Chemical [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 648 | 840 | |
Intersegment Eliminations [Member] | Storage Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | 334 | 59 | |
Intersegment Eliminations [Member] | Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross revenues | $ 176 | $ 0 |