Matrix Service (MTRX) 8-K Matrix Service Provides Update of Fiscal 2009 Earnings Guidance

Exhibit 99

FOR IMMEDIATE RELEASE

MATRIX SERVICE ANNOUNCES RESULTS OF THIRD QUARTER OF FISCAL 2009 ENDED FEBRUARY 28, 2009

Matrix Service Provides Update of Fiscal 2009 Earnings Guidance

Third-Quarter Fiscal 2009 Highlights:

• Revenues were $146.3 million;

• Gross margins were 12.3%;

• Operating income was $7.0 million;

• Fully diluted EPS was $0.16 per share;

• Completed two strategic acquisitions; and

• Backlog was $452.5 million at February 28, 2009.

Nine-Month Fiscal 2009 Highlights:

• Revenues were $509.8 million;

• Gross margins improved to 13.9%;

• Operating income was $36.2 million; and

• Record fully diluted EPS was $0.90 per share.

TULSA, OK – April 9, 2009 – Matrix Service Co. (Nasdaq: MTRX), a leading industrial services company, today reported its financial results for the third quarter, ended February 28, 2009.

Third Quarter of Fiscal 2009 Results

Net income for the third quarter of fiscal 2009 decreased to $4.2 million, or $0.16 per fully diluted share, versus net income in the third quarter of fiscal 2008 of $6.0 million, or $0.22 per fully diluted share. Consolidated revenues were $146.3 million in third quarter compared to $181.1 million in the third quarter of fiscal 2008. The decline in third quarter consolidated revenues was the result of a decrease in the Construction Services segment of $39.6 million partially offset by an increase in the Repair and Maintenance Services segment of $4.8 million.

Mike Bradley, chief executive officer stated, “The third quarter was more challenging than expected as capital and maintenance spending slowed considerably as clients adjusted to the downturn in the economy and further assessed their spending plans for 2009. We are pleased with the continued focused execution by our operating personnel as evidenced by solid gross margins and outstanding safety performance in a tough environment. Additionally, we advanced our strategy to position the company for further growth and diversification with the completion of two strategic acquisitions during the quarter.”

Revenues for the Construction Services segment were $79.9 million, compared with $119.5 million in the same period a year earlier. The decrease was primarily due to lower Specialty revenues, which decreased to $5.6 million in the same period in fiscal 2009, compared to $24.0 million the year earlier period, lower Aboveground Storage Tank revenues, which decreased to $36.9 million in the third quarter of fiscal 2009, compared to $51.1 million in the year earlier period, and lower Downstream Petroleum revenues, which decreased to $28.3 million in the third quarter in fiscal 2009, compared to $39.7 million in the year earlier period. These were partially offset by higher Electrical and Instrumentation revenues, which improved from $4.7 million in the fiscal 2008 to $9.1 million in the current period.

Revenues for the Repair and Maintenance Services segment were $66.4 million, compared to $61.6 million in the year earlier period. The improvement was due to higher Electrical and Instrumentation revenues, which increased to $7.0 million in the third quarter of fiscal 2009, compared to $3.4 million the year earlier period and higher Downstream Petroleum revenues, which increased to $22.1 million, compared to $19.2 million in the year earlier period.

Consolidated gross profit decreased from $21.0 million in the third quarter of fiscal 2008 to $18.0 million in the third quarter of fiscal 2009. The decrease was due to a 19.2% decline in consolidated revenues, partially offset by an increase in gross margins, which improved to 12.3% from 11.6% in the same period of fiscal 2008. The gross margin improvement was due to higher margins in the Construction Services segment, where the gross margin increased to 11.7% in the current fiscal year up from 9.5% in the prior fiscal year. Repair and Maintenance Services segment gross margins decreased to 13.0% in the current year period compared to 15.7% in the third quarter of fiscal 2008.

Consolidated SG&A expenses were $10.9 million in the third quarter of both fiscal 2009 and fiscal 2008. The $10.9 million represents a reduction of $0.9 million from the second fiscal quarter of 2009 as the Company implemented cost control measures as a result of the current economic environment. SG&A expense as a percentage of revenue increased to 7.5% in fiscal 2009 compared to 6.0% in the same period of the prior fiscal year due to the $34.8 million decline in revenues.

EBITDA⁽¹⁾ was $9.6 million as compare to $12.4 million in the same period last year.

Consolidated backlog at February 28, 2009 was $452.5 million compared to $454.0 million at the end of the second fiscal quarter. Additions during the quarter included awards of $141.2 million and backlog acquired through acquisitions of $38.6 million. Project cancellations of $35.2 million partially offset these increases.

Nine-Month Fiscal 2009 Results

For the nine months ended February 28, 2009, net income grew to $23.8 million, or $0.90 per fully diluted share, up from net income for the same period of fiscal 2008 of $12.5 million, or $0.46 per fully diluted share. Consolidated revenues were $509.8 million in the nine months of fiscal 2009, a decrease of $27.4 million from consolidated revenues of $537.2 million for same period of fiscal 2008. The decline in consolidated revenues was the result of a decrease in the Construction Services segment of $39.9 million, offset partially by an increase of $12.5 million in the Repair and Maintenance Services segment.

Revenues for the Construction Services segment were $294.7 million, compared with $334.6 million in the same period a year earlier. The decrease of $39.9 million was due to lower Specialty revenues, which decreased $42.1 million as the construction of the tanks on a Gulf Coast LNG project was completed in the fourth quarter of fiscal 2008. In addition, Aboveground Storage Tank revenues decreased $11.1 million to $137.8 million in the first nine months of fiscal 2009, compared to $148.9 million the year earlier period, and Downstream Petroleum revenues decreased $9.8 million to $103.0 million in the fiscal 2009 period, compared to $112.8 million in the year earlier period. Partially offsetting this decline was higher Electrical and Instrumentation revenues, which increased $23.1 million to $35.2 million in the first nine months of fiscal 2009, compared to $12.1 million in the year earlier period.

Revenues for the Repair and Maintenance Services segment were $215.1 million in the first nine months of fiscal 2009 compared to $202.6 million in the same period of fiscal 2008. The improvement was due to higher Aboveground Storage Tank revenues, which increased $11.5 million to $136.4 million in the fiscal 2009 period, compared to $124.9 million in the prior fiscal year period and higher Electrical and Instrumentation revenues, which increased $3.0 million to $14.1 million in the fiscal 2009 period, compared to $11.1 million in the prior fiscal year period. These increases were partially offset by lower Downstream Petroleum revenues, which decreased $2.0 million to $64.6 million in the fiscal 2009 period from $66.6 million during the same period in fiscal 2008.

Consolidated gross profit increased from $51.2 million in the first nine months of fiscal 2008 to $71.0 million in the fiscal 2009 period. The improvement of $19.8 million or 38.7% was due to an increase in gross margins, which improved from 9.5% in the fiscal 2008 period to 13.9%. The gross margin improvement was due to higher margins in the Construction Services segment, where the gross margin increased to 12.6% in the current fiscal year up from 5.4% in the prior fiscal year. Repair and Maintenance Services segment gross margins were 15.7% in the current year period compared to 16.3% for the same period in fiscal 2008.

Consolidated SG&A expenses increased $4.0 million, or 13.0%, in the fiscal 2009 period to $34.8 million from $30.8 million for the same period in fiscal 2008. The increase was primarily due to the costs of our expansion into Western Canada and the Gulf Coast Region and higher employee related and facility costs incurred to build the infrastructure and sales force necessary to support our long-term growth plan. SG&A expense as a percentage of revenue increased to 6.8% in the fiscal 2009 period compared to 5.7% in the same period of the prior fiscal year.

EBITDA⁽¹⁾ increased to $44.6 million, from $26.5 million in the same period last year.

Financial Position

During the third quarter, the Company increased its cash balance from $13.5 million at November 30, 2008, to $22.6 million at February 28, 2009. The increase provided by operations, was partially offset cash used for capital expenditures and acquisitions. The Company did not borrow under its $75 million revolving credit facility during the third quarter and has not borrowed under the facility during the first nine months of fiscal 2009. The fiscal 2009 capital expenditure budget of $25 million has been reduced to $12 million.

Earnings Guidance

Mr. Bradley provided the following comments regarding earnings guidance, “We have seen our operating activity in the fourth quarter improve from the levels we saw in the third quarter. As a result, we now expect fully diluted EPS in the range of $1.10 per fully diluted share to $1.25 per fully diluted share. Although the current environment remains challenging, we believe that our strong financial position will allow us to capitalize on opportunities we are currently pursuing.”

⁽¹⁾ The Company believes that EBITDA (earnings before net interest, income taxes, depreciation and amortization) is used by the financial community as a method of measuring the Company’s performance and of evaluating the market value of companies considered to be in similar businesses. EBITDA should not be considered as an alternative to net income or cash provided by operating activities, as defined by accounting principles generally accepted in the United States (“GAAP”). A reconciliation of EBITDA to net income is included at the end of this release.

Conference Call Details

In conjunction with the press release, Matrix Service will host a conference call with Michael J. Bradley, president and CEO, and Thomas E. Long, vice president and CFO. The call will take place at 11:00 a.m. (Eastern) / 10:00 a.m. (Central) today and will be simultaneously broadcast live over the Internet at www.matrixservice.com or www.vcall.com. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within one hour of completion of the live call.

About Matrix Service Company

Matrix Service Company provides general industrial construction and repair and maintenance services principally to the petroleum, petrochemical, power, bulk storage terminal, pipeline and industrial gas industries.

The Company is headquartered in Tulsa, Oklahoma, with regional operating facilities located in Oklahoma, Texas, California, Michigan, New Jersey, Pennsylvania, Illinois, Washington, and Delaware in the U.S. and in Canada.

This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance and management’s best judgment as to what may occur in the future. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including those factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company’s operations and its financial condition. We undertake no obligation to update information contained in this release.

For more information, please contact:

Matrix Service Company

Tom Long, Vice President Finance and CFO

T: +1-918-838-8822

E: telong@matrixservice.com

Investors and Financial Media:

Trúc Nguyen, Managing Director

Grayling

T: +1-646-284-9418

E: truc.nguyen@us.grayling.com

Matrix Service Company

Consolidated Statements of Income

(In thousands, except per share data)

	Three Months Ended						Nine Months Ended
	February 28, 2009			February 29, 2008			February 28, 2009			February 29, 2008
	(unaudited)						(unaudited)
Revenues	$	146,262		$	181,120		$	509,849		$	537,181
Cost of revenues		128,301			160,119			438,848			486,030
Gross profit		17,961			21,001			71,001			51,151
Selling, general and administrative expenses		10,916			10,905			34,754			30,792
Operating income		7,045			10,096			36,247			20,359
Other income (expense):
Interest expense		(139	)		(183	)		(376	)		(760	)
Interest income		68			26			281			57
Other		(179	)		52			732			89
Income before income taxes		6,795			9,991			36,884			19,745
Provision for federal, state and foreign income taxes		2,583			3,989			13,040			7,197
Net income	$	4,212		$	6,002		$	23,844		$	12,548
Basic earnings per common share	$	0.16		$	0.23		$	0.91		$	0.47
Diluted earnings per common share	$	0.16		$	0.22		$	0.90		$	0.46
Weighted average common shares outstanding:
Basic		26,147			26,464			26,107			26,561
Diluted		26,322			26,870			26,426			27,033

Matrix Service Company

Consolidated Balance Sheets

(In thousands)

	February 28,			May 31,
	2009			2008
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	22,552		$	21,989
Accounts receivable, less allowances (February 28, 2009—$375 and May 31, 2008—$269)		126,944			105,858
Costs and estimated earnings in excess of billings on uncompleted contracts		38,635			49,940
Inventories		5,876			4,255
Deferred income taxes		5,016			4,399
Prepaid expenses		4,839			3,357
Income tax receivable		739			—
Other current assets		3,642			809
Total current assets		208,243			190,607
Property, plant and equipment at cost:
Land and buildings		26,932			24,268
Construction equipment		54,180			47,370
Transportation equipment		17,851			16,927
Furniture and fixtures		14,587			11,781
Construction in progress		1,498			6,712
		115,048			107,058
Accumulated depreciation		(54,948	)		(49,811	)
Property, plant and equipment, net		60,100			57,247
Goodwill		22,916			23,329
Other assets		4,830			3,410
Total assets	$	296,089		$	274,593

Matrix Service Company

Consolidated Balance Sheets

(In thousands, except share data)

	February 28, 2009			May 31, 2008
	(unaudited)
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	58,545		$	53,560
Billings on uncompleted contracts in excess of costs and estimated earnings		47,168			48,709
Accrued wages and benefits		12,858			14,976
Accrued insurance		6,554			8,451
Income tax payable		—			2,028
Current capital lease obligations		1,324			1,042
Other accrued expenses		1,708			1,015
Total current liabilities		128,157			129,781
Long-term capital lease obligations		759			1,000
Deferred income taxes		4,257			5,112
Stockholders’ equity:
Common stock—$.01 par value; 60,000,000 shares authorized, 27,888,217 shares issued as of February 28, 2009 and May 31, 2008		279			279
Additional paid-in capital		111,374			108,402
Retained earnings		68,648			44,809
Accumulated other comprehensive income (loss)		(1,220	)		1,584
		179,081			155,074
Less: Treasury stock, at cost—1,738,223 and 1,825,600 shares as of February 28, 2009 and May 31, 2008		(16,165	)		(16,374	)
Total stockholders’ equity		162,916			138,700
Total liabilities and stockholders’ equity	$	296,089		$	274,593

Results of Operations

(In thousands)

	Construction Services			Repair & Maintenance Services		Other			Total
Three Months Ended February 28, 2009
Gross revenues	$	85,607		$	66,520	$	—		$	152,127
Less: Inter-segment revenues		5,740			125		—			5,865
Consolidated revenues		79,867			66,395		—			146,262
Gross profit		9,332			8,629		—			17,961
Operating income		2,641			4,404		—			7,045
Income before income tax expense		2,365			4,430		—			6,795
Net income		1,451			2,761		—			4,212
Segment assets		148,078			115,887		32,124			296,089
Capital expenditures		388			81		1,559			2,028
Depreciation and amortization expense		1,572			1,184		—			2,756
Three Months Ended February 29, 2008
Gross revenues	$	123,186		$	62,165	$	—		$	185,351
Less: Inter-segment revenues		3,644			587		—			4,231
Consolidated revenues		119,542			61,578		—			181,120
Gross profit		11,359			9,642		—			21,001
Operating income (loss)		5,141			5,061		(106	)		10,096
Income (loss) before income tax expense		5,015			5,082		(106	)		9,991
Net income (loss)		3,007			3,057		(62	)		6,002
Segment assets		155,939			80,550		20,663			257,152
Capital expenditures		2,837			542		1,412			4,791
Depreciation and amortization expense		1,384			833		—			2,217
Nine Months Ended February 28, 2009
Gross revenues	$	316,052		$	216,186	$	—		$	532,238
Less: Inter-segment revenues		21,298			1,091		—			22,389
Consolidated revenues		294,754			215,095		—			509,849
Gross profit		37,138			33,863		—			71,001
Operating income		15,751			20,496		—			36,247
Income before income tax expense		15,748			21,136		—			36,884
Net income		10,264			13,580		—			23,844
Segment assets		148,078			115,887		32,124			296,089
Capital expenditures		2,361			1,825		4,432			8,618
Depreciation and amortization expense		4,343			3,274		—			7,617
Nine Months Ended February 29, 2008
Gross revenues	$	345,646		$	205,570	$	—		$	551,216
Less: Inter-segment revenues		11,052			2,983		—			14,035
Consolidated revenues		334,594			202,587		—			537,181
Gross profit		18,193			32,958		—			51,151
Operating income (loss)		(204	)		20,588		(25	)		20,359
Income (loss) before income tax expense		(704	)		20,474		(25	)		19,745
Net income (loss)		(5	)		12,567		(14	)		12,548
Segment assets		155,939			80,550		20,663			257,152
Capital expenditures		6,743			3,084		3,291			13,118
Depreciation and amortization expense		3,615			2,415		—			6,030

Segment Revenue from External Customers by Industry Type

(In thousands)

	Construction Services		Repair & Maintenance Services		Total
Three Months Ended February 28, 2009
Aboveground Storage Tanks	$	36,879	$	37,192	$	74,071
Downstream Petroleum		28,302		22,155		50,457
Electrical and Instrumentation		9,120		7,048		16,168
Specialty		5,566		—		5,566
Total	$	79,867	$	66,395	$	146,262
Three Months Ended February 29, 2008
Aboveground Storage Tanks	$	51,109	$	38,901	$	90,010
Downstream Petroleum		39,740		19,236		58,976
Electrical and Instrumentation		4,705		3,441		8,146
Specialty		23,988		—		23,988
Total	$	119,542	$	61,578	$	181,120
Nine Months Ended February 28, 2009
Aboveground Storage Tanks	$	137,772	$	136,398	$	274,170
Downstream Petroleum		103,039		64,604		167,643
Electrical and Instrumentation		35,244		14,093		49,337
Specialty		18,699		—		18,699
Total	$	294,754	$	215,095	$	509,849
Nine Months Ended February 29, 2008
Aboveground Storage Tanks	$	148,908	$	124,933	$	273,841
Downstream Petroleum		112,791		66,583		179,374
Electrical and Instrumentation		12,116		11,071		23,187
Specialty		60,779		—		60,779
Total	$	334,594	$	202,587	$	537,181

Backlog

We define backlog as the total dollar amount of revenues that we expect to recognize as a result of performing work that has been awarded to us through a signed contract that we consider firm. The following contract types are considered firm:

• fixed-price arrangements;

• minimum customer commitments on cost plus arrangements; and

• certain time and material contracts in which the estimated contract value is firm or can be estimated with a reasonable amount of certainty in both timing and amounts.

For long-term maintenance contracts, we include only the amounts that we expect to recognize into revenue over the next 12 months. For all other arrangements, we calculate backlog as the estimated contract amount less the revenue recognized as of the reporting date.

The following provides a rollforward of our backlog for the three-months ended February 28, 2009:

	Construction Services			Repair & Maintenance Services			Total
	(In thousands)
Backlog as of November 30, 2008	$	282,868		$	171,153		$	454,021
New backlog awarded		75,915			65,325			141,240
Backlog acquired		28,262			10,378			38,640
Backlog cancelled		(34,577	)		(582	)		(35,159	)
Revenue recognized on contracts in backlog		(79,867	)		(66,395	)		(146,262	)
Backlog as of February 28, 2009	$	272,601		$	179,879		$	452,480

The following provides a rollforward of our backlog for the nine-months ended February 28, 2009:

	Construction Services			Repair & Maintenance Services			Total
	(In thousands)
Backlog as of May 31, 2008	$	325,341		$	141,967		$	467,308
New backlog awarded		248,329			245,371			493,700
Backlog acquired		28,262			10,378			38,640
Backlog cancelled		(34,577	)		(2,742	)		(37,319	)
Revenue recognized on contracts in backlog		(294,754	)		(215,095	)		(509,849	)
Backlog as of February 28, 2009	$	272,601		$	179,879		$	452,480

Non-GAAP Financial Measure

EBITDA is a supplemental, non-GAAP financial measure. We define EBITDA as earnings before net interest expense, income taxes, depreciation and amortization. We have presented EBITDA because it is used by the financial community as a method of measuring our performance and of evaluating the market value of companies considered to be in similar businesses. We believe that the line item on our Consolidated Statements of Income entitled “Net Income” is the most directly comparable GAAP measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. EBITDA, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not necessarily a measure of our ability to fund our cash needs. As EBITDA excludes certain financial information compared with net income, the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. Our non-GAAP performance measure, EBITDA, has certain material limitations as follows:

• It does not include interest income or expense. Because we borrow money from time to time to finance our operations, interest expense is a necessary and ongoing part of our costs and has assisted us in generating revenue. Therefore, any measure that excludes interest expense has material limitations.

• It does not include income taxes. Because the payment of income taxes is a necessary and ongoing part of our operations, any measure that excludes income taxes has material limitations.

• It does not include depreciation expense. Because we use capital assets to generate revenue, depreciation expense is a necessary element of our cost structure. Therefore, any measure that excludes depreciation expense has material limitations.

A reconciliation of EBITDA to net income follows:

	Three Months Ended				Nine Months Ended
	February 28, 2009		February 29, 2008		February 28, 2009		February 29, 2008
	(In thousands)				(In thousands)
Net income	$	4,212	$	6,002	$	23,844	$	12,548
Interest expense, net		71		157		95		703
Provision for income taxes		2,583		3,989		13,040		7,197
Depreciation and amortization		2,756		2,217		7,617		6,030
EBITDA	$	9,622	$	12,365	$	44,596	$	26,478