MG - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen. And thank you for joining MISTRAS Group's Conference Call for the First Quarter of Fiscal 2022. My name is Daniel and I will be your event manager today. We'll be accepting questions after management's prepared remarks. Participating on the call for MISTRAS will be Dennis Bertolotti, the Company's President and Chief Executive Officer, Ed Prajzner, Executive Vice President, Chief Financial Officer, and Treasurer, and Jon Wolk, Senior Executive Vice President and Chief Operating Officer. everyone forward-looking made statements. remind call this to include will want that during remarks conference I The from those actual projected. company's results could differ materially

Reconciliation in differ with discussion Form to financial not XX-K over the these factors current actual U.S. financial other the include on release reports GAAP to of in company's can the Some X-K. conference measures certain I can the and the and website. the turn U.S. financial SEC's conference recent are SEC. the website, prepared measures are on call with to also The press report Dennis most in tables now Investors most directly on those were reports the this section, yesterday's GAAP related comparable be discussed at in measures report of These annual found and GAAP. that filed accordance company's Bertolotti. in will in that Form non-U.S. results in the cause will available contained company's

Dennis Bertolotti

revenue outlook the Consequently, margin expanding been year. confident accomplished in quarter level. with across Dan. we essentially Good successful, services morning, the has we EBITDA our depth several been was for of strong our strategy In on provide lines the the today. growth were pre-pandemic quarter a our first as you, expectations. quarter full even that end Adjusted markets added consecutive details adjusted for to well markets value later. recover. thank year all positioned that with our our to This And pandemic is considering full revenues seventh has us year-over-year Ed first the below joining up of our are line you since will continue achieve signal are our for everyone. for growth the Thank especially a despite of to end business EBITDA expand remaining also

energy, based results our on increasing data our improved operations and these from achieve to space contribution core renewable on solutions. stable expect We private performance and in initiatives growth

related initiatives winning and over promising, are very our customers. we see growth customers, Our solutions enhancing continue to value our existing to data to offerings new and

it is of enhanced leveraging OneSuite its our winning ways. applications across not currently The differentiate three new and core gas customers, only us is different firmly also So functionality software will in customers. oil

First, even stickier retention. component our become customer than our continue they utilize unique XX will an activities, daily customer’s to of applications. It as more

customers they and data. their unlocking overall And our unique the ultimately Second, of and our our seek applications cannot we increasingly applications, along consulting with our benefits, use as of for fees related with insights licensing by other achieve which greater platform create through customers monetizing and from direct analysis applications, vendors. digital integrate value the will underlying by third,

will our applications and We analysis leverage possible. where automate

despite we as usually start expect fully season. barrel prices. well supply take high to ramp caused on quarter customer norm, customers not and and added did More a reflects the slow importantly, other up on delays on for data our until generated the through sector of deferrals effort activity mid-March. in slow the April that type line of the Downstream and an the issues of chain with in by value benefit piece remain subject will pivotal achieved place at for customers the start matter strong it experts continue who The X.X% our a spring daily by the capitalize earlier both sites, basis make balance a primarily services. turnaround was the was quarter season. of continued historic to Consequently, spring is Revenue otherwise most as to ups

inline offshore in land prices or with schedules expected were largely and and Upstream however taking. petrochemical was Downstream slight based oil in unaffected XX%. the profit over a sectors Alaska. overlapping a little The due recent projects and by sector were for Our with volatility inspections first up solid midstream the strength chain quarter results and increase to in drilling as business slow issues Canada supply in

We expect consistent space, overall in. year. be market full historic levels norms recovery for activity the we nature distinct of reflect of participate the These the independent with energy different the which

significantly includes in are defense We aerospace our Revenue was growth which optimistic market we space. in for XX%. long defense be business, current this believe private quarter And the commercial, term at us. this very and about sector will a and up

our created new prompting customers materializing for Safran helping in are chains, in experience global manage America. and opportunities, which is executed supply their Our Europe North

illustration, purchasing order on an partnered in their which machining a alleviated qualifying major chain. to with bottleneck capability us and for in equipment customer a As supply them, create recently

our And customer overall of optimistic our manage The our are a growing strong, margin diversification resume sector are first second had to industrial aerospace space for we the the sectors very expect we commercial increasingly second process and for verge of illustrates With and business growth continue We strong growing end to being MISTRAS us in our our chains casting industry material; has added to and new value in been shipping later be other the half the helping that market be slump supply offering. and markets. private in to to expand going XX. of to years is which others telling recovery. also houses further experience are benefits realized business quarter, greater which half and for XXXX. success for finally expect prepared severe to push the service Foundries, continue our the confident its year growth this this they a the on in us testing two high already volumes of in will significant

full year growth path guidance get call. the we'll first to later quarter, we our a in expectations. with in the revenue this year have And So full experience clear

of an with improvement on ago. quarter based the the mix margin in gross expect and also a significantly year sales dollars profit Gross efficiency We a gains. to year expand further were over balance and flat

profit almost gross down which the profit would $X time margin not was in up from margin Both excluding one nature margin differential gross a ago. of dollars services and in and particularly are segment. been have however, reoccur, from increased year items, gross expected ago. International to million year Although a

on details. quarter XXXX to Ed pre-pandemic control. remain see it's year. believe we be clear Consistent costs period, through will first as under focus our with as leverage. operating we Overhead up operate this the So of why walk gross margin we will those the you level for improving in intently

is believe we our continues performance first reflect quarter that our always to strategic Given slowest, seasonally the initiatives. our across progress

creating our As are challenges. new only Both private private is space but customers it opportunities. growing, not noted us earlier, is aerospace supply asking about solutions and spaceflight to chain business their

by initial private of that ideas. less that fund industry to to a help our norms even impacted historic success in the open finding an is with dedicated assist to equipment new with chain. procurement for their us is supply parts assurance space, are We and There [Indiscernible] willing additional them

our machining. cycle preparing of testing saves Le a Creusot a in facility companies our presents For and instance, little existing customer many value incremental physical supply it for great we facility, multitude our at are This time business global cost solution to to costs assets France chain undertaking and reduces This our for is customer. experiencing and with to very a operations emulate new partnering MISTRAS added leverages challenges. Georgia as from

team opportunity maintenance represents to revenue the and monitoring cost. and our the growth. efficiency to will emission results and will improve aerospace off. need three turbine existing reason will add and profit potential incremental capability. cost Blade sensor Insights a current gross leverages another we technology operators Sensoria in Sensoria the sensor and Portal. monitoring turbine at and offers which business resumes the our significantly growth Web safety, also profit first with a It monitoring, pleased and our are and of streams, for first and began I'm XX/X streams. incremental our both our repair, being forward very existing to represents align dollars our unique achieved incremental new As full Monitoring for the testing It growth a blade quarter. that of for sales, farm, entire expanded minimal its and the why began progress quarter margin quantum automation finalize data onshore wind we nicely with growth, gross and leap and our owners it Compared to is small, business revenue year confident for model Sensoria customers In wind our practices, and farms, current analytics large Wind both acoustic

XX monitoring the of of of along revenues. to to to As Sensoria the we capacity monitoring by We generation still turbines to the expand end our up power this contribute growth to expect by be XXXX capacity, expect the XXX be year, with XXXX. we end to

see to benefit am for MISTRAS. continue Sensoria capacity OEM monitor to excited application the many We the and growth future of opportunity for I this and megawatt turbine, different unique of and

OneSuite spanning have industrial XXX already our in gaining installations App its well zero We've individual’s separate XXX Finally, one an as as Store, implemented traction. of over starting XX since in inception, we which of users are our at with customer fleet XXXX. previously described January sites, unique as complementary version solutions subscription data

manage our into We added an technology is and like improving Both demonstrating asset It expansion users three on first Sensoria predictive results OneSuite data and ROI delivering number improving solutions over this strategy is for advanced with steep customers analytics, give uniquely revenue the and the capabilities. year, other the that these XX turn are customers. growth qualified tools retention, and These ramp dependent their robust, our OneSuite. ultimately to OneSuite areas of a expertise. Ed anticipate the OneSuite becoming actionable using call represent detail and into doubling quarter. analytical would our new are inter-related This their excited monetizing enables the to platform, and combined actually primary MISTRAS and insights to now of in capabilities Because the protection evolution on seeing the new second OneSuite leverage which solution for better applications. value I'm in We them help our core for in enhanced turn to further to data to a platform. more in digital in predictive very about customer through financial our of is to MISTRAS assets. available them up and a data increasingly beyond. hosted an proven you data OneSuite and create throughout objectives I AI, utilization customers half prospects in has opportunity

Edward Prajzner

growth, near line morning, And increasing We bottom good markets a continued for the our met expectations together consistent consecutive exceeded operating and well. strengthening not pre-pandemic expectations have or the Dennis. levels. We've line as string business, business the despite of in in with you, quarter leverage record of that of top growth the success Thank our returned model This everyone. reflects to our fourth the strategy. our on-going to fully

the to Aerospace million. and to increased quarter, Industrials. X.X% primarily Turning was the quarter growth performance the driven results for consolidated Revenue year Upstream, over by $XXX.X strong in prior revenue in

includes and data growing analysis growing other which and business, the nicely. as business Sensoria’s monitoring, as existing software plus Our OneSuite of is licenses sensor rapid and monitoring well adoption software solutions data

year, dollars $XX margin to over the was That quarter comparable was Furthermore, year. these approximately in gross $X digital in million said the subsidies million, strategy. to first profit compared of prior for as to in as we actually America would items the items due amounting revenue year-over-year. OneSuite and expect year We monetize XX. expired our less resumed year health to XXX(K) year-over-year. quarter primarily in Dennis wage Note begin the Gross the year-over-year. XXX(K) XXXX in non-recurring which with current margin million period, X gross prior to X the lower subsidies match almost a profit August that Normalizing XX.X%. the to the North in of Gross the XXXX costs differential year in match for factoring wage dollars the million was XX was more margin higher in October other in expired have improved a gross compared of margins first care and prior quarter and Canadian ago double

do expect in from So third Despite Dennis and higher over sales will comparability sequentially confident year the model. these first to leverage the quarter administrative quarter. in these second to improved the is fourth Cost the containment and which impact as mix in trend than are one and we million, margin the our continue significantly QX of efficiency a the Selling, reasons headwinds, were of we expenses headwinds we from can general $XX and mentioned, an main the improvements. remains quarter gross balance and down increase X.X%. by focus business

the We of at remain to remaining quarters current expect overhead level the about this over year.

For which diluted share, of $X.X a loss GAAP earlier. I EBITDA million with year. items prior a which with impacted given million especially expectation, the compared was quarter $X.XX recent year $X.X $X to consistent non-recurring was the net most mentioned reported quarter, our we consistent per which the or gross profit ago, for Adjusted relatively the million

income benefit this tax rate effective Our quarter a XX%. actually was

year tax XX. anticipate purposes, an income effective of for approximately would For modeling of the we rate full XX%

extended built up a billing adversely receivable working out days typical impacted our for being March consumed of is function of cash the In which quarter. flow. average, us, accounts This first cash was free biggest seven we As in on as primarily the particular, net capital. the month quarter we

in a demand increase of heavy the AR core billings. is function So

We million EBITDA, expect in cash December The is which $X.X related free only discrete of Act the by ratio. be taxes is year's conversion will CARES as cash flow, our payment in in to year with EBITDA as the historical reduction deferred flow payroll exception approximate our ratio. line well adjusted XX% for a conversion which XX, this a due of

million first of expenditures We year-end net net aforementioned working to compared debt by million million. a as to for in $XX.X in The million to expect $XXX.X $XXX.X result capital. the year the capital as of increased company's $XX approximate increase the quarter

free use times. ratio we Given to cash three that a targeted believe flow or enable at we flow At continues flow of than intend or equal that we use be cash to end will to means our our cash to level, of primary reduction less year our year expectations, below outstanding growth. to us as leverage anticipated of evaluate accelerate of debt, the full our the

quarter levels. Our peak. has to second that low of from prices the the business of end and rebounding demand been improved have pre-pandemic recovering time, are XXXX demand markets level since COVID-XX our of were the Energy experienced in effect

commercial Accordingly, expect we largest revenue to second year $XXX is sector second lagging accelerated Our aerospace and $XXX the market, an in million, generate in which full adjusted between end million. the the between half been defense should of to $XX improvement aerospace had although recoveries, anticipated particularly to XX. for market EBITDA grow other million XXXX, of commercial million to $XX

be after flow of Our $X.X by of free $XX million expected this $XX year. tax payment payroll to mentioned million and cash previously is the Act between million, December CARES

outlook data demand, developing markets, manufacturing, Given industrial in aerospace robust strong projections. solutions, improving a are we energy commercial rapidly achieving our and confident

strategy our invest sustainable our business. committed to through business while cycles. Our maintaining and robust remain is extremes firmly while model we in continuing on long plans back to prudently turn economic containment, cost executing we And to wrap intense of And the our that, over focus to before our with now both for on the is That questions. your call up term. his today I will Dennis take over move and

Dennis Bertolotti

Thanks, as reducing to Ed. top year growth we us bottom on has Again, while which our line third expected, also of achieve started pace both XX debt. and consecutive

shareholder increased expected over leverage and can revenues optimizing you on of operating We this improving course efficiency, are faster generating than returns. to clearly our objective. commitment business in grow to see EBITDA adjusted XX, the focused our our With the

our revenue our ensure rebound. maximize continues as help and will we that to overhead to continue costs our revenue level returns calibrate We assess to to can

a year foundation recovering expect recovery, not exiting data Our markets renewable for our our OneSuite as transformative truly participating core believe Sensoria but We that are core we well value seeing we legacy and last via initiatives, our industries revenue expanding growth over are be solutions and strong core our our believe to markets. unique as technologies demand a greatly drive new growing aerospace do will this strong directly, and certainly year that the growth as we as importantly, with as we have help innovative least space in. and and Put private just and we OneSuite, legacy energy commercial of business. the enhances proprietary which to emerging via customers have technologies, with

with that growth. opportunities long continue global critical As chain more industrial peak investment new infrastructure efficiency. North has to and issues strong There at new many support restrictive public and much thinking has government involved impose demand coupled to term When standards ensure compliance will innovative entities both been in today's and operate significant a Europe. supply of market that and they in safety America interest

remains focus that services help mechanical And I'm data on growth excited and into in organizations solutions our for meet prospects will productivity. believe and developing optimize XX. I us Our expanded innovative that aerospace our our to growth their accelerate challenges new objectives. about these very push help and

goals taking like to the continuing on I'm future, way strategic services our the thank of space have while strategic The executed markets. planning dedication the customer constantly for all targeted to will and end and in on in the investments MISTRAS for drive proud present. their employees questions, the focus continuing expanded evolving to our in our team I Before customers your growth would we made needs. digital we've the serving

phone lines. MISTRAS for whom but and initiative, with for valued tenants Connects focus MISTRAS up everyone those please partner. manner. with the on made positive of that resilient a a Caring we caring our sticking can provide ever has of a By in the all better more to Your than wellbeing safe only the workplace we for safety we family, work not open interact the as and Daniel,

Operator

Mitch first comes Pinheiro Our from Instructions] question with [Operator Sturdivant.

your open. button. your Mitch, is now check Your open. Please is mute line line

Mitchell Pinheiro

right. All

figured you mute out I me? think button. the I hear Can

Dennis Bertolotti

We Mitch, yes. can

Mitchell Pinheiro

Good Thank Couple questions. Okay. you. morning. of

the up Downstream I XX% hear if was so was and correctly, Upstream did the First, down. heard about correct? markets, that you I energy in that Upstream Is

Dennis Bertolotti

Yes.

Mitchell Pinheiro

So out? going to prices pop to was is I throughout talk the there pent going going we're a a earlier Downstream little that can turnarounds where spreads. remember, -- to what I'm talking for to well, and spot see energy when in expecting bit out from is get to up love was I'd with sweet just just happening demand, and about you to before, you big largely pushed year? second line what's point we're hear And it quarter it I Downstream? is in evenly crack services, it the see, spread for predictability the market going or in a Is of view. is and

Dennis Bertolotti

Yes, follow take if a to and throw person Mitch a Jon up. I'll it got he's

within customers much read don't projects that lot into moving things a And of as issues too looking eight out them. when six, was get quarter. the we've I'm believe ago were at one they started vendors was so everything quarter. started laid I seen the on the they delaying only of sure closely out year. worked all So to started things There so the moving first labor for months the first around pushed were spaced

just was three, everything mostly two into three quarters, and different four. delayed So or

goes, to, looking they little the to think the definitely do kind at answer yes. But don't back spread. we're of as essentially, figure this out, the they the sign. just I think shorten and not it's indicative year? sometimes if trying bit on far crack are front is back looking tried front, planning to trying So they can the The work the shorten I tried on end, as of but to of They a any to sure

they're contracted to they how each on of the of to best think other, get projects lot and I make done. trying top it had of just a

that and later anything just being get I spring plays Whether the say, amount. vendor even I maybe start and and XX, in XX. But, see taken out run profit a XX, they too still to there's be got will XX, and plenty that don't little alarming. think crack maybe think and huge decide a customer I some and They've of each longer. and seen, XX. So I to some think all a differently I'm remains some plus that it spreads, to refinery. cleaning for little bit projects sure they are because particular in defer I was of XX done up as don't

I think to they're back. trying work it

only look so it can for at a you anytime deferring you or long. think, cycle, inspection maintenance I do

now. anything going So there's to know And what picked or on Jon, don't year they're happening deferring that. is up, year the be today out. next that's different I what's if

Jonathan Wolk

agree Hey everything Dennis, said. I just with you

I'm supports in pushed see of scheduled did for QX, we pushed out toward totally sized the out at two think got you turnarounds decent least end just that aware that of that year later were I they the said. what

Mitchell Pinheiro

has are than things permanently then pandemic, margins, a business, specifically. in we energy the that in services side perspective, And the post Okay. the that mean, look anything at the from other I margin the, anything call changed would you

Dennis Bertolotti

certain I So might there hitting customers skill inflation on see dragging having are right not you an they're And to contract. talk a only talk the entire willing lag certain to is between Mitch, sets. might is, about skills, increase; about an willing think be now, thing

you of behind, you stuff but will customer as So a give bit little the that on market as by itself. conditions, what happens and kind catch recovered out, the by needed skill is, up increases

that’s see one don't major, as part of that the but being too I only the inflation. So anything

that's model think I there there's far the in but was they're there couple was spend I don't As I can But all all margins or nothing so. of in customer, be margins, that try over. going so changed really reductions that differences believe fair, margin see just back, all some going that that that the think really on of be as to haven't I carried the here COVID the you gotten every that we've doing. to years. mean, type careful to XXXX and just, been, And of they're on, last

Mitchell Pinheiro

ecosystem to the here. OneSuite, get then, I just, trying I'm And arms my around Okay. just

But, reported in are to Or finding is your, each? how are where the revenues say, it second of you Like, one, is year, lines? do Is revenue? we A, year? your where it and retention it And within in should this you, at doubling number OneSuite the financials? You OneSuite, the, the then benefits number Is full the double, it's about how So, than and OneSuite, your other it? all Where two? are the benefits? we customer looking is talk of going more just isn't how coming? be

Dennis Bertolotti

Yes, that's fair questions.

to first as in of financials, it going in mostly see rolling now service, to their we're it the your you're right see So question this inside start North eventually, to American sector, you'll national. out,

even a would I in all So that think bit goes I and products, little is sorry, through.

to to question is core going because it'll as well and emerging the all play across So answer customers it's as three question markets. your help first

you'll in places. So all see it

sub segments, in but data we're a going breaking are sector. in the out as once of sub segment, showing data all sales hit a and to new We be that a all we

million doing, from for new $X in year, will instance, new roughly existing expect other customers, money. customers existing say, double, added also XX, what should in we around going to I there's started we're but the this we is from income we've once and once So through over from last money with coming to

harness So really that the solution. they had to. our it or knew OneSuite gives is our more what is to ability of is it part applications customers data just And never many Mitch, access

and, a XX of it's a people stickier and But segment majority vast make that of small see only second those the in and data sale. some going applications the your to for gas these So parts on data the not the oil is, are it's customers. question

from up, it's to deals to in and those well up, words. petrochemical in and to as applications A's So these benefiting excess and going as all customers segments have assets three midstream, me, gas oil power down

things. So and the other applications data and storing know, can results predictive, and be to as fill future life to you tanks future all heights anything such from calculating these

say, them past, find that to things use, them an So it But new run value And as In it's because that to operation? or does it's it them holistic provider it is what going weeks industry, and really more inspect telling what him. where it, turn this a evolve of to us really has does be That's as not the and for really make to, over immediately your materially they piece our the and tell that out. it's road, asset to is gather the to would of going equipment just how instead tell to of months today. equipment. go and to out figure data we to problem job inspectors you does them or them impact the stickier down that it to as that information to we have piece this

store than idea having data readily just be used up and was able what of electronically these more see OneSuite do to here screen it of what applications the to can just different piece old storing So through is that get the to and much on they all which allows them be data have to paper. it on a

that modified, what have run can are. they information day inspection, more it run do a making and equipment it to they them with to or a that have they or growth for we're put they can Now that can that have we understand actually to XX/X have something for that is, to whatever and do cracking more sunset as on those look defects do

we that's, So see that's it. how

customers hopefully and it know before. the to these spend their more So will existed it's And basically time absolutely didn't stickier. that just they using of going applications make more

Mitchell Pinheiro

I'll get the to queue. more Okay, question. and one just back then

or would, that you regarding, your pre-pandemic of and talking aerospace and half? beyond demand perhaps, second for levels your significant an half strengthening some when second about sort we like are customers talk half, is, getting it your, second Regarding back expectation that comments aerospace comes that. to When to

Dennis Bertolotti

about great that I not right mostly question. so getting say much past now, it's it. Yes, getting would talking to

it's lot a now. engines stress, higher lot and wing back getting But stress do of on do a planes, struts right engine that and the parts tested we of the do, landing full of of gear sort of it's and skins. we pre-COVID certainly what For roughly a the from components all to to we anything

And You the demand everything I the we International there. the for believe we'll single problems, bodies getting off vendors aisles, built XX in wide is folks these double when the say and chain but be is The laid there there's The XX. one will that see don't slide, one very the problems there's here across being supply caveat, supply shortly. we board, back. of have coming every chain

body. trying to, hire back fast and need as they they're or Now back skills same to can't they hire as amount sometimes the of them the just

chain this So fracking mitigation got and oil as gas, coming in see works as quick of ready, in saying even ready, for them supply one into it in you'll site us out just now. do you and more of little want get problems the aerospace get right trying customers they along stuffs playing get side can't we to kind a and leans the they up. And the are really to start the that the components find where and of are bit valves

is chain But from up everything supply people to chain hard lot us just machining being for else time actually well They're because great with the and laid play off. and layoff and areas across supply of level. us. trying demand board there is see to and ramping you that everyone the by this across back this are that So a quitting into a we dragging just having believe litigation bodes

Mitchell Pinheiro

the get there queue. I'll Thanks, and in Okay. back it leave

Dennis Bertolotti

you. Thank

Operator

Thank Sakai Instructions] from Our Chris next Research. you. [Operator Singular with comes question

is line open. now Your

Chris Sakai

morning. good Hi,

improve it'll you gross Just the about end say to what share going expansion, to be think the a year. you of talk will guys the you year? guys margin what, at Can throughout wanted it's

Edward Prajzner

So ahead. I’ll…. Go ahead, go

Dennis Bertolotti

got of so it’s comes that here. stream of the one you've Yes, there. in certainly couple basically, back second that half Hey of your improves a favor Aerospace them, Dennis the margins. is recovery in as Chris. things on Chris, the year Hi,

higher come level QX lowest maybe I QX, kind then mean, seasonal our of and and the period So is QX margins, always back in on QX up it'll out.

of gross profit little margin, and to we've replicate for of ballpark, improvement. year's improvement continue seeing it in here So, that get would well. we get to we're lot couple our next hopefully on would from -- efficiencies last that of a targeting modestly years, to were The goal for like so margins to year's of a not if we XX. a focus and mix, in the that it's going to expand want after maybe been really we last be to ever last as But, bit margins, improve an function back

very So, down margin QX kind little strong QX, other distorted and are and with somewhat period QX leveling absorption of the back a significantly lower quarters. the periods with a again, the is QX of bit. than Again, on always kind under

Chris Sakai

great. a well Okay, decreased. be mentioned, trend going then And sequentially that Is throughout SG&A you to the year?

Edward Prajzner

for we from as the in That's good XXXX. XX, rate. that and as have marks, they XX their pretty no, at did cost earlier number No, level a it's we the costs million now QX. periods restored been XX in said, it's send All of outs run

revenue So level. pretty volume is to good a too It's not yes, sensitive XX forward. number going to use

flow rate ever is going number and pretty ebb run that use a number so to forward SG&A. may for current slightly, good but So the

Dennis Bertolotti

sure SG&A are there. looking Chris, it's our fat goods of make our cost Dennis, to sold doesn't and any to in going we have be

So we are be looking at as well. it going to

XX. now, more? shouldn't a don't we be I that put That's that, bit mean, with any to our targets it it goal. yet. little But out there So take we down Can right have

Edward Prajzner

and running keep keep, study just focus years, as a to current if there we'll Dennis cost revenue margins last not growing. to level. the continue, for We've to keep overhead will and that consistent Okay the and to said, couple of balance done calibrate years to,

Chris Sakai

Okay, you had you year in turbines for for that? a have goal quarter. XX Did can't remember. first you I then mentioned the great. wind the And

Edward Prajzner

there, you little want bit, to if numbers we some in had Jon's a talk on it. but Jon, closest

Jonathan Wolk

We're Yes, recent sure. being wind activity about with Hi. Thanks so recent are defects for about good customers, inspections. question. in we really these Yes, confirmed the turbine good We daily and Sensoria. feel having by feel the really discoveries. our blades,

the bit certainly XXX little kind tricky years a small building, you're starting turbines monitored. in of want we up momentum good out, before to when base of a pretty say, from a activity. see But be, being wind excess I'd we So of

to that. So, we're do a path on

Chris Sakai

Thanks Okay, the question. great. Well, for thanks.

Jonathan Wolk

Thank you. Thanks, Chris.

Chris Sakai

Thank you.

Operator

conference turn over question-and-answer I our back remarks. like session. Bertolotti to concludes now This for would closing Dennis you. to Thank the

Dennis Bertolotti

for everyone call. today. productive safe to our earnings in thank on conference Please day. continued and a look our And like updating you Okay, and have your MISTRAS I'd call interest joining next forward we on to

Operator

for conference This you Thank call. concludes today’s participating.

You may now disconnect.

Mistras (MG) 7 May 222022 Q1 Earnings call transcript