Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2024 | May 08, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-15461 | |
Entity Registrant Name | MATRIX SERVICE CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1352174 | |
Entity Address, Address Line One | 15 East 5th Street, Suite 1100 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74103 | |
City Area Code | 918 | |
Local Phone Number | 838-8822 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MTRX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,308,795 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000866273 | |
Current Fiscal Year End Date | --06-30 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 166,013 | $ 186,895 | $ 538,714 | $ 589,166 |
Cost of revenue | 160,435 | 182,476 | 510,688 | 573,041 |
Gross profit | 5,578 | 4,419 | 28,026 | 16,125 |
Selling, general and administrative expenses | 19,948 | 16,862 | 52,792 | 51,218 |
Goodwill impairment | 0 | 0 | 0 | 12,316 |
Restructuring costs | 0 | 316 | 0 | 2,881 |
Operating loss | (14,370) | (12,759) | (24,766) | (50,290) |
Other income (expense): | ||||
Interest expense | (143) | (268) | (787) | (1,556) |
Interest income | 165 | 94 | 477 | 164 |
Other | (235) | (116) | 4,481 | (706) |
Loss before income tax expense | (14,583) | (13,049) | (20,595) | (52,388) |
Provision for federal, state and foreign income taxes | (2) | (363) | 4 | (363) |
Net loss | $ (14,581) | $ (12,686) | $ (20,599) | $ (52,025) |
Basic loss per common share (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.75) | $ (1.93) |
Diluted loss per common share (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.75) | $ (1.93) |
Weighted Average Number of Shares Outstanding, Basic | 27,443 | 27,038 | 27,357 | 26,969 |
Weighted Average Number of Shares Outstanding Diluted | 27,443 | 27,038 | 27,357 | 26,969 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Other Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (14,581) | $ (12,686) | $ (20,599) | $ (52,025) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation loss | (548) | (234) | (524) | (722) |
Comprehensive loss | $ (15,129) | $ (12,920) | $ (21,123) | $ (52,747) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 69,658 | $ 54,812 |
Accounts receivable, less allowances (March 31, 2024—$428 and June 30, 2023—$1,061) | 172,924 | 145,764 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 34,600 | 44,888 |
Inventories | 9,057 | 7,437 |
Income taxes receivable | 325 | 496 |
Prepaid expenses | 6,606 | 5,741 |
Other current assets | 0 | 3,118 |
Total current assets | 293,170 | 262,256 |
Restricted cash | 25,000 | 25,000 |
Property, plant and equipment - net | 44,711 | 47,545 |
Operating lease right-of-use assets | 17,911 | 21,799 |
Goodwill | 29,061 | 29,120 |
Other intangible assets, net of accumulated amortization | 1,925 | 3,066 |
Other assets, non-current (Note 2) | 28,227 | 11,718 |
Total assets | 440,005 | 400,504 |
Current liabilities: | ||
Accounts payable | 55,192 | 76,365 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 167,657 | 85,436 |
Accrued wages and benefits | 18,068 | 13,679 |
Accrued insurance | 5,699 | 5,579 |
Operating lease liabilities | 3,624 | 4,661 |
Other accrued expenses | 2,009 | 1,815 |
Total current liabilities | 252,249 | 187,535 |
Deferred income taxes | 25 | 26 |
Operating lease liabilities | 17,947 | 20,660 |
Borrowings under asset-backed credit facility | 0 | 10,000 |
Other liabilities, non-current | 3,982 | 799 |
Total liabilities | 274,203 | 219,020 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock—$0.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2024 and June 30, 2023; 27,304,734 and 27,047,318 shares outstanding as of March 31, 2024 and June 30, 2023, respectively | 279 | 279 |
Additional paid-in capital | 142,634 | 140,810 |
Retained earnings | 38,318 | 58,917 |
Accumulated other comprehensive loss | (9,293) | (8,769) |
Treasury stock, at cost — 583,483 shares as of March 31, 2024, and 840,899 shares as of June 30, 2023 | (6,136) | (9,753) |
Total stockholders' equity | 165,802 | 181,484 |
Total liabilities and stockholders’ equity | $ 440,005 | $ 400,504 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Statement Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $ 428 | $ 1,061 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 27,888,217 | 27,888,217 |
Common stock, shares, outstanding (in shares) | 27,304,734 | 27,047,318 |
Treasury stock, common, shares (in shares) | 583,483 | 840,899 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net income (loss) | $ (20,599) | $ (52,025) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 8,337 | 10,499 |
Goodwill impairment | 0 | 12,316 |
Stock-based compensation expense | 5,765 | 5,154 |
Gain on sale of property, plant and equipment (Note 3) | (4,530) | (21) |
Provision for uncollectible accounts | (33) | (63) |
Other | 202 | 189 |
Changes in operating assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable, net of allowance for credit losses | (43,080) | (9,484) |
Costs and estimated earnings in excess of billings on uncompleted contracts | 10,288 | (8,646) |
Inventories | (1,620) | 1,947 |
Other assets and liabilities | 1,653 | 10,401 |
Accounts payable | (20,923) | (9,344) |
Billings on uncompleted contracts in excess of costs and estimated earnings | 82,221 | 49,623 |
Accrued expenses | 7,886 | (8,143) |
Net cash provided by operating activities | 25,567 | 2,403 |
Investing activities: | ||
Capital expenditures | (5,689) | (6,212) |
Proceeds from asset sales | 5,535 | 110 |
Net cash used by investing activities | (154) | (6,102) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from Long-Term Lines of Credit | 10,000 | 10,000 |
Repayments of advances under asset-backed credit facility | (20,000) | (10,000) |
Proceeds from issuance of common stock under employee stock purchase plan | 132 | 200 |
Repurchase of common stock for payment of statutory taxes due on equity-based compensation | (456) | (310) |
Net cash used by financing activities | (10,324) | (110) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (243) | (358) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14,846 | (4,167) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period | 79,812 | 77,371 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period | 94,658 | 73,204 |
Supplemental disclosure of cash flow information: | ||
Income taxes | (148) | (13,286) |
Interest | 776 | 1,675 |
Non-cash investing and financing activities: | ||
Purchases of property, plant and equipment on account | $ 39 | $ 30 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balances, beginning at Jun. 30, 2022 | $ 227,706 | $ 279 | $ 139,854 | $ 111,278 | $ (8,175) | $ (15,530) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (52,025) | (52,025) | ||||
Other comprehensive income (loss) | (722) | (722) | ||||
Issuance of restricted stock | 0 | (5,149) | 5,149 | |||
Treasury shares sold to Employee Stock Purchase Plan | 200 | (602) | 802 | |||
Treasury shares purchased to satisfy tax withholding obligations | (310) | (310) | ||||
Stock-based compensation expense | 5,154 | 5,154 | ||||
Balances, ending at Mar. 31, 2023 | 180,003 | 279 | 139,257 | 59,253 | (8,897) | (9,889) |
Balances, beginning at Dec. 31, 2022 | 191,452 | 279 | 137,989 | 71,939 | (8,663) | (10,092) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (12,686) | (12,686) | ||||
Other comprehensive income (loss) | (234) | (234) | ||||
Treasury shares sold to Employee Stock Purchase Plan | 64 | (139) | 203 | |||
Stock-based compensation expense | 1,407 | 1,407 | ||||
Balances, ending at Mar. 31, 2023 | 180,003 | 279 | 139,257 | 59,253 | (8,897) | (9,889) |
Balances, beginning at Jun. 30, 2023 | 181,484 | 279 | 140,810 | 58,917 | (8,769) | (9,753) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (20,599) | (20,599) | ||||
Other comprehensive income (loss) | (524) | (524) | ||||
Issuance of restricted stock | 0 | (3,868) | 3,868 | |||
Treasury shares sold to Employee Stock Purchase Plan | 132 | (73) | 205 | |||
Treasury shares purchased to satisfy tax withholding obligations | (456) | (456) | ||||
Stock-based compensation expense | 5,765 | 5,765 | ||||
Balances, ending at Mar. 31, 2024 | 165,802 | 279 | 142,634 | 38,318 | (9,293) | (6,136) |
Balances, beginning at Dec. 31, 2023 | 178,910 | 279 | 140,668 | 52,899 | (8,745) | (6,191) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (14,581) | (14,581) | ||||
Other comprehensive income (loss) | (548) | (548) | ||||
Treasury shares sold to Employee Stock Purchase Plan | 41 | (14) | 55 | |||
Stock-based compensation expense | 1,980 | 1,980 | ||||
Balances, ending at Mar. 31, 2024 | $ 165,802 | $ 279 | $ 142,634 | $ 38,318 | $ (9,293) | $ (6,136) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Issuance of restricted stock (in shares) | 297,026 | 259,529 | ||
Treasury shares sold to Employee Stock Purchase Plan (in shares) | 4,249 | 10,233 | 15,714 | 40,377 |
Treasury shares purchased to satisfy tax withholding obligations (in shares) | 55,324 | 52,864 | ||
Other comprehensive income (loss) | $ (548) | $ (234) | $ (524) | $ (722) |
Total stockholders' equity | 165,802 | 180,003 | 165,802 | 180,003 |
Net loss | (14,581) | (12,686) | (20,599) | (52,025) |
Treasury shares sold to Employee Stock Purchase Plan | 41 | 64 | 132 | 200 |
Stock-based compensation expense | $ 1,980 | $ 1,407 | $ 5,765 | $ 5,154 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of Matrix Service Company and its subsidiaries (“Matrix”, “we”, “our”, “us”, “its” or the “Company”), 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 U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, 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 consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2023, included in our Annual Report on Form 10-K. The results of operations for the three and nine month periods ended March 31, 2024 may not necessarily be indicative of the results of operations for the full year ending June 30, 2024. Significant Accounting Policies Our significant accounting policies are detailed in “Note 1 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended June 30, 2023. Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. Other accounting pronouncements issued but not effective until after March 31, 2024 are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Remaining Performance Obligations We had $680.0 million of remaining performance obligations yet to be satisfied as of March 31, 2024. We expect to recognize $431.9 million of our remaining performance obligations as revenue within the next twelve months. Contract Balances Contract terms with customers include the timing of billing and payments, which usually differs from the timing of revenue recognition. As a result, we carry contract assets and liabilities in our balance sheet. These contract assets and liabilities are calculated on a contract-by-contract basis and are classified as current. We present our contract assets in the balance sheet as Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts ("CIE"). CIE consists of revenue recognized in excess of billings. We present our contract liabilities in the balance sheet as Billings on Uncompleted Contracts in Excess of Costs and Estimated Earnings ("BIE"). BIE consists of billings in excess of revenue recognized. The following table provides information about CIE and BIE: March 31, June 30, Change (In thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 34,600 $ 44,888 $ (10,288) Billings on uncompleted contracts in excess of costs and estimated earnings (167,657) (85,436) (82,221) Net contract liabilities $ (133,057) $ (40,548) $ (92,509) The difference between the beginning and ending balances of our CIE and BIE primarily results from the timing of revenue recognized relative to the billings on the associated contract. The amount of revenue recognized during the nine months ended March 31, 2024 that was included in the June 30, 2023 BIE balance was $84.7 million. Progress billings in accounts receivable at March 31, 2024 and June 30, 2023 included retentions to be collected within one year of $12.7 million and $16.3 million, respectively. Contract retentions collectible beyond one year are included in other assets, non-current in the Condensed Consolidated Balance Sheets and totaled $25.9 million as of March 31, 2024 and $10.0 million as of June 30, 2023. Unpriced Change Orders and Claims Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unpriced change orders and claims of $12.0 million at March 31, 2024 and $9.7 million at June 30, 2023. The amounts ultimately realized may be significantly different than the recorded amounts resulting in a material adjustment to future earnings. The determination of our legal basis for a claim requires significant judgment. Generally, collection of amounts related to unpriced 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. Disaggregated Revenue Revenue disaggregated by reportable segment is presented in Note 9 - Segment Information. The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type: Geographic Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 153,181 $ 178,261 $ 487,140 $ 524,731 Canada 11,998 6,932 43,419 52,742 Other international 834 1,702 8,155 11,693 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166 Contract Type Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Fixed-price contracts $ 90,878 $ 96,755 $ 305,346 $ 311,511 Time and materials and other cost reimbursable contracts 75,135 90,140 233,368 277,655 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166 Revisions in Estimates During fiscal 2023, unfavorable changes in the estimated recovery of change orders and increased forecasted costs to complete and closeout certain midstream gas processing construction work in the Process and Industrial Facilities segment resulted in a reduction of gross profit of $3.3 million and $12.7 million during the three and nine months ended March 31, 2023, respectively. This was primarily the result of the client not approving adequate compensation to us for the impact that excessive scope changes had on our ability to progress the work according to forecast and for the impacts of global supply chain issues and inflation. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Building Purchase During the third quarter of fiscal 2024, we purchased a fabrication facility in Bakersfield, California for $4.1 million to replace a facility currently being leased by the Company. Building Disposals During the second quarter of fiscal 2024, we sold a facility in Catoosa, Oklahoma for $2.7 million in net proceeds, which resulted in a gain of $2.0 million. Proceeds were received in January 2024. The gain was included in Other income in the Condensed Consolidated Statements of Income. The facility was previously utilized for our industrial cleaning business, which was sold during the fourth quarter of fiscal 2023. The sale of the Catoosa, Oklahoma facility completed our divestiture and closure of a non-core service offering of the business as part of our strategy to focus the business on core markets. During the first quarter of fiscal 2024, we sold a previously utilized facility in Burlington, Ontario for $2.7 million in net proceeds, which resulted in a gain of $2.5 million. The gain was included in Other income in the Condensed Consolidated Statements of Income. We closed this previously utilized facility during the second quarter of fiscal 2023 because it was no longer strategic to the future of the business. |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the second quarter of fiscal 2023, we had indicators of a potential impairment and performed an interim impairment test within the Process and Industrial Facilities segment. We concluded that its $12.3 million of goodwill was fully impaired and recognized the impairment in operating income during the three and six months ended December 31, 2022. We did not record any impairments during the three and nine months ended March 31, 2024. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt On September 9, 2021, the Company and our primary U.S. and Canada operating subsidiaries entered into an asset-based credit agreement, which was amended on May 3, 2024 (as amended, the "ABL Facility"), with Bank of Montreal, as Administrative Agent, Swing Line Lender and a Letter of Credit Issuer, and the lenders named therein. The maximum amount of loans under the ABL Facility is limited to $90.0 million. The ABL Facility's available borrowings may be increased by an amount not to exceed $15.0 million, subject to certain conditions, including obtaining additional commitments. The ABL Facility is intended to be used for working capital, capital expenditures, issuances of letters of credit and other lawful purposes. Our obligations under the ABL Facility are guaranteed by substantially all of our U.S. and Canadian subsidiaries and are secured by a first lien on all our assets and the assets of our co-borrowers and guarantors under the ABL Facility. The ABL Facility matures, and any outstanding amounts become due and payable, on September 9, 2026. The maximum amount that we may borrow under the ABL Facility is subject to a borrowing base, which is based on restricted cash plus a percentage of the value of certain accounts receivable, inventory and equipment, reduced for certain reserves. We are required to maintain a minimum of $25.0 million of restricted cash at all times, but such amounts are also included in the borrowing base. The borrowing base is recalculated on a monthly basis and at March 31, 2024, our borrowing base was $72.3 million. The Company had $7.0 million in letters of credit outstanding as of March 31, 2024, which resulted in availability of $65.3 million under the ABL Facility. Borrowings under the ABL Facility bear interest through maturity at a variable rate based upon, at our option, an annual rate of either a base rate (“Base Rate”), an Adjusted Term Secured Overnight Financing Rate ("Adjusted Term SOFR"), or at the Canadian Prime Rate, plus an applicable margin. The Adjusted Term SOFR is defined as (i) the SOFR plus (ii) 11.448 basis points for a one-month tenor and 26.161 basis points for a three-month tenor; provided that the Adjusted Term SOFR cannot be below zero. The Base Rate is defined as a fluctuating interest rate equal to the greater of: (i) rate of interest announced by Bank of Montreal from time to time as its prime rate; (ii) the U.S. federal funds rate plus 0.50%; (iii) Adjusted Term SOFR for one month period plus 1.00%; or (iv) 1.00%. Depending on the amount of average availability, the applicable margin is between 1.00% to 1.50% for Base Rate and Canadian Prime Rate borrowings, which includes either U.S. or Canadian prime rate, and between 2.00% and 2.50% for Adjusted Term SOFR borrowings. Interest is payable either (i) monthly for Base Rate or Canadian Prime Rate borrowings or (ii) the last day of the interest period for Adjusted Term SOFR borrowings, as set forth in the ABL Facility. The fee for undrawn amounts is 0.25% per annum and is due quarterly. The ABL Facility contains customary conditions to borrowings, events of default and covenants, including, but not limited to, covenants that restrict our ability to sell assets, engage in mergers and acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay cash dividends, issue equity instruments, make distribution or redeem or repurchase capital stock. In the event that our availability is less than the greater of (i) $15.0 million and (ii) 15.00% of the commitments under the ABL Facility then in effect, a consolidated Fixed Charge Coverage Ratio of at least 1.00 to 1.00 must be maintained. We were in compliance with all covenants of the ABL Facility as of March 31, 2024. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate Our effective tax rates were zero for each of the three and nine months ended March 31, 2024. During the three and nine months ended March 31, 2023, our effective tax rates were 2.8% and 0.7%, respectively. The effective tax rates during fiscal 2024 were impacted by valuation allowances of $4.4 million and $5.8 million placed on deferred tax assets during the three and nine months ended March 31, 2024, respectively. The effective tax rates during fiscal 2023 were impacted by valuation allowances of $3.6 million and $13.3 million placed on deferred tax assets during the three and nine months ended March 31, 2023, respectively. Valuation Allowance We placed a valuation allowance on our deferred tax assets in the second quarter of fiscal 2022 due to the existence of a cumulative loss over a three-year period. We will continue to place valuation allowances on newly generated deferred tax assets and will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided to the extent we generate taxable income in the future. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance Reserves We maintain insurance coverage for various aspects of our operations. However, we retain exposure to potential losses 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. We 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. We maintain a performance and payment bonding line sufficient to support the business. We generally require our subcontractors to indemnify us and our customer and name us 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 us, 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. Litigation During fiscal 2020, we commenced litigation in an effort to collect an account receivable from an iron and steel customer on a reimbursable contract following the deterioration of the relationship. In connection with our suit, the customer filed certain counterclaims against us. In September 2023, a jury returned a verdict in our favor and awarded us the full contract balance. We received full payment of $16.8 million in the second quarter of fiscal 2024. During fiscal 2022, we filed an arbitration demand in an effort to collect outstanding balances of $32.7 million from a customer for which we completed a crude oil storage terminal project. The customer has filed counterclaims for liquidated damages and miscellaneous warranty items. We deny all claims and believe we are entitled to collect the full amount owed under the contract. Our hearing for this matter is currently scheduled for October 2024. During fiscal 2023, we completed cost reimbursable construction services for a customer at a mining and minerals facility. In late fiscal 2023, after numerous attempts to collect outstanding receivables, we filed a notice of default for lack of payment of outstanding balances, and in early fiscal 2024, we filed a lien on the facility. The customer responded by commencing litigation against us, alleging breach of contract and breach of express warranty. We deny all claims and filed a countersuit against the customer for failure to pay outstanding amounts of accounts receivable, which totaled $5.6 million as of March 31, 2024. Our trial for this matter is currently scheduled for January 2025. Litigation is unpredictable; however, we believe we have set appropriate reserves based on our evaluation of the possible outcomes of the litigation. We and our subsidiaries are participants in various other legal actions. It is the opinion of management that none of the other known legal actions will have a material impact on our financial position, results of operations or liquidity. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Mar. 31, 2024 | |
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 nonvested restricted stock shares. In the event we report a loss, nonvested restricted stock shares are not included since they are anti-dilutive. 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, (In thousands, except per share data) Basic EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Weighted average shares outstanding 27,443 27,038 27,357 26,969 Basic loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) Diluted EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Diluted weighted average shares outstanding 27,443 27,038 27,357 26,969 Diluted loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) 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, (In thousands) Nonvested restricted stock shares 1,056 133 868 81 |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In fiscal 2020, we initiated a business improvement plan to increase profitability and reduce our cost structure in order to help us become more competitive and deliver higher quality service. As a result of specific events, including the effects of the COVID-19 pandemic and related market disruptions, the Company expanded its business improvement plan. The business improvement plan consisted of an initial phase of discretionary cost reductions, workforce reductions, reduction of capital expenditures and the reduction in size or closure of certain offices in order to increase the utilization of our staff and bring the cost structure of the business in line with revenue volumes. In fiscal 2022, we commenced a second phase of our plan to focus on centralization of support functions, including business development, accounting, human resources, procurement and project services into shared service centers. During the three and nine months ended March 31, 2023, we incurred restructuring costs of $0.3 million and $2.9 million, respectively. The restructuring costs were primarily related to severance and other personnel-related costs in connection with the second phase of our plan as well as the closure of an underperforming operating location. Our restructuring efforts were substantially complete as of June 30, 2023. No restructuring costs were incurred during the three and nine months ended March 31, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ (14,581) | $ (12,686) | $ (20,599) | $ (52,025) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Matrix Service Company and its subsidiaries (“Matrix”, “we”, “our”, “us”, “its” or the “Company”), 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 U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, 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 consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2023, included in our Annual Report on Form 10-K. The results of operations for the three and nine month periods ended March 31, 2024 may not necessarily be indicative of the results of operations for the full year ending June 30, 2024. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). Adoption of this ASU will result in additional disclosure, but will not impact the Company's consolidated financial position, results of operations or cash flows. Other accounting pronouncements issued but not effective until after March 31, 2024 are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table provides information about CIE and BIE: March 31, June 30, Change (In thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 34,600 $ 44,888 $ (10,288) Billings on uncompleted contracts in excess of costs and estimated earnings (167,657) (85,436) (82,221) Net contract liabilities $ (133,057) $ (40,548) $ (92,509) |
Summary of Revenue by Geographic Areas | The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type: Geographic Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 153,181 $ 178,261 $ 487,140 $ 524,731 Canada 11,998 6,932 43,419 52,742 Other international 834 1,702 8,155 11,693 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166 |
Summary of Revenue by Contract Type | Contract Type Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Fixed-price contracts $ 90,878 $ 96,755 $ 305,346 $ 311,511 Time and materials and other cost reimbursable contracts 75,135 90,140 233,368 277,655 Total Revenue $ 166,013 $ 186,895 $ 538,714 $ 589,166 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, (In thousands, except per share data) Basic EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Weighted average shares outstanding 27,443 27,038 27,357 26,969 Basic loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) Diluted EPS: Net loss $ (14,581) $ (12,686) $ (20,599) $ (52,025) Diluted weighted average shares outstanding 27,443 27,038 27,357 26,969 Diluted loss per share $ (0.53) $ (0.47) $ (0.75) $ (1.93) |
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, (In thousands) Nonvested restricted stock shares 1,056 133 868 81 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Remaining performance obligations yet to be satisfied | $ 680 | |||
Performance obligations to be recognized as revenue within next twelve months | 431.9 | |||
Contract with customer, revenue recognized | 84.7 | |||
Retentions to be collected within one year | 12.7 | $ 16.3 | ||
Contract retentions collectible beyond one year | 25.9 | 10 | ||
Unapproved change orders and claims | $ 12 | $ 9.7 | ||
Process and Industrial Facilities Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Loss on contracts | $ 3.3 | $ 12.7 |
Revenue - Summary of Contract A
Revenue - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 34,600 | $ 44,888 |
Change in CIE | (10,288) | |
Billings on uncompleted contracts in excess of costs and estimated earnings | (167,657) | (85,436) |
Change in BIE | (82,221) | |
Net contract liabilities | (133,057) | $ (40,548) |
Change in net contract balances | $ (92,509) |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 166,013 | $ 186,895 | $ 538,714 | $ 589,166 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 153,181 | 178,261 | 487,140 | 524,731 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,998 | 6,932 | 43,419 | 52,742 |
Other international | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 834 | $ 1,702 | $ 8,155 | $ 11,693 |
Revenue - Summary of Revenue _2
Revenue - Summary of Revenue by Contract Types (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 166,013 | $ 186,895 | $ 538,714 | $ 589,166 |
Fixed-price contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 90,878 | 96,755 | 305,346 | 311,511 |
Time and materials and other cost reimbursable contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 75,135 | $ 90,140 | $ 233,368 | $ 277,655 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Proceeds from asset sales | $ 5,535 | $ 110 | ||
Gain on disposition of assets | $ 4,530 | $ 21 | ||
Catoosa Facility Disposal | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from asset sales | $ 2,700 | |||
Gain on disposition of assets | 2,000 | |||
Burlington Office | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from asset sales | 2,700 | |||
Gain on disposition of assets | $ 2,500 | |||
Bakersfield Facility Purchase [Domain] | ||||
Property, Plant and Equipment [Line Items] | ||||
Payments to Acquire Buildings | $ 4,100 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 12,300 | $ 12,300 | $ 0 | $ 12,316 |
Debt (Details)
Debt (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2024 USD ($) | |
Debt Disclosure [Abstract] | |
Line of credit facility, initiation date | Sep. 09, 2021 |
Line of credit facility, maximum borrowing capacity | $ 90 |
Line of credit facility, increase (decrease) | 15 |
Compensating balance | 25 |
Line of credit facility, borrowing base | 72.3 |
Letters of credit outstanding, amount | 7 |
Line of credit facility, remaining borrowing capacity | $ 65.3 |
Asset backed credit facility, adjusted term SOFR one-month tenor, basis points | 11.448 |
Asset backed credit facility, adjusted term SOFR three-month tenor, basis points | 26.161 |
Asset backed credit facility, federal funds rate addition | 0.0050 |
Asset backed credit facility, adjusted term SOFR rate, minimum | 0.0100 |
Alternate base rate margin | 0.0100 |
Additional margin on alternate base rate loans, minimum | 1% |
Additional margin on alternate base rate loans, maximum | 1.50% |
Additional margin on adjusted term SOFR, minimum | 0.0200 |
Additional margin on adjusted term SOFR, maximum | 0.0250 |
Unused credit facility fee, percentage | 0.25% |
Asset backed line of credit, balance limit for fixed charge, coverage ratio | $ 15 |
Asset backed line of credit, percentage limit for fixed charge, coverage ratio | 15% |
Asset backed credit facility, fixed charge coverage ratio requirement, minimum | 1 |
Asset backed credit facility, fixed charged coverage ratio requirement, maximum | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Valuation allowances placed on deferred tax assets | $ 4.4 | $ 3.6 | $ 5.8 | $ 13.3 |
Effective Income Tax Rate Reconciliation, Percent | 2.80% | 0.70% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 10 Months Ended | |
Oct. 31, 2023 | Mar. 31, 2024 | |
Iron and Steel Project | ||
Loss Contingencies [Line Items] | ||
Proceeds from legal settlements | $ 16.8 | |
Mining and Minerals Project | ||
Loss Contingencies [Line Items] | ||
Contracts receivable, claims and uncertain amounts | $ 5.6 | |
Crude Oil Terminal Project | ||
Loss Contingencies [Line Items] | ||
Contracts receivable, claims and uncertain amounts | $ 32.7 |
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 | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Basic EPS: | ||||
Net income (loss) | $ (14,581) | $ (12,686) | $ (20,599) | $ (52,025) |
Weighted average shares outstanding - basic (in shares) | 27,443 | 27,038 | 27,357 | 26,969 |
Basic loss per share (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.75) | $ (1.93) |
Diluted EPS: | ||||
Diluted weighted average shares outstanding (in shares) | 27,443 | 27,038 | 27,357 | 26,969 |
Diluted loss per share (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.75) | $ (1.93) |
Net income (loss) | $ (14,581) | $ (12,686) | $ (20,599) | $ (52,025) |
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 | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Nonvested restricted stock shares (in shares) | 1,056 | 133 | 868 | 81 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | segment | 3 | ||||||
Revenue | $ 166,013,000 | $ 186,895,000 | $ 538,714,000 | $ 589,166,000 | |||
Cost of Revenue | (160,435,000) | (182,476,000) | (510,688,000) | (573,041,000) | |||
Gross profit (loss) | 5,578,000 | 4,419,000 | 28,026,000 | 16,125,000 | |||
Selling, general and administrative expenses | 19,948,000 | 16,862,000 | 52,792,000 | 51,218,000 | |||
Goodwill impairment | 0 | 0 | $ 12,300,000 | $ 12,300,000 | 0 | 12,316,000 | |
Restructuring Costs | 316,000 | 2,881,000 | |||||
Operating income (loss) | (14,370,000) | (12,759,000) | (24,766,000) | (50,290,000) | |||
Segment assets | 440,005,000 | 440,005,000 | $ 400,504,000 | ||||
Storage and Terminal Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 54,304,000 | 52,165,000 | 206,808,000 | 191,614,000 | |||
Cost of Revenue | 51,991,000 | 52,975,000 | 197,704,000 | 183,211,000 | |||
Gross profit (loss) | 2,313,000 | (810,000) | 9,104,000 | 8,403,000 | |||
Selling, general and administrative expenses | 5,395,000 | 5,735,000 | 14,362,000 | 15,342,000 | |||
Goodwill impairment | 0 | ||||||
Restructuring Costs | 79,000 | 984,000 | |||||
Operating income (loss) | (3,082,000) | $ (6,624,000) | (5,258,000) | $ (7,923,000) | |||
Segment assets | $ 142,168,000 | $ 142,168,000 | 139,333,000 | ||||
Storage and Terminal Solutions | Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment Information | (1) | (1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $1.7 million for the three months ended March 31, 2023. | (1) | (1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $2.8 million for the nine months ended March 31, 2023. | |||
Utility and Power Infrastructure | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | $ 46,120,000 | $ 35,024,000 | $ 118,659,000 | $ 130,429,000 | |||
Cost of Revenue | 44,711,000 | 32,234,000 | 112,139,000 | 123,500,000 | |||
Gross profit (loss) | 1,409,000 | 2,790,000 | 6,520,000 | 6,929,000 | |||
Selling, general and administrative expenses | 2,733,000 | 1,869,000 | 6,259,000 | 5,394,000 | |||
Goodwill impairment | 0 | ||||||
Restructuring Costs | 0 | 37,000 | |||||
Operating income (loss) | (1,324,000) | 921,000 | 261,000 | 1,498,000 | |||
Segment assets | 77,054,000 | 77,054,000 | 67,630,000 | ||||
Process and Industrial Facilities | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 65,589,000 | 99,706,000 | 212,014,000 | 267,123,000 | |||
Cost of Revenue | 63,822,000 | 96,546,000 | 198,498,000 | 264,764,000 | |||
Gross profit (loss) | 1,767,000 | 3,160,000 | 13,516,000 | 2,359,000 | |||
Selling, general and administrative expenses | 2,590,000 | 3,556,000 | 7,884,000 | 11,308,000 | |||
Goodwill impairment | 12,316,000 | ||||||
Restructuring Costs | 106,000 | 803,000 | |||||
Operating income (loss) | (823,000) | (502,000) | 5,632,000 | (22,068,000) | |||
Segment assets | 118,412,000 | 118,412,000 | 90,514,000 | ||||
Corporate Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 0 | 0 | 1,233,000 | 0 | |||
Cost of Revenue | (89,000) | 721,000 | 2,347,000 | 1,566,000 | |||
Gross profit (loss) | 89,000 | (721,000) | (1,114,000) | (1,566,000) | |||
Selling, general and administrative expenses | 9,230,000 | 5,702,000 | 24,287,000 | 19,174,000 | |||
Goodwill impairment | 0 | ||||||
Restructuring Costs | 131,000 | 1,057,000 | |||||
Segment assets | 102,371,000 | 102,371,000 | $ 103,027,000 | ||||
Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income (loss) | $ (9,141,000) | $ (6,554,000) | $ (25,401,000) | $ (21,797,000) |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 316 | $ 0 | $ 2,881 |
Severance and Other Personnel-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 300 | $ 2,900 |