MG - Earnings call 1 2023 | Mistras Group, Inc.

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Operator

Thank you for joining Mistras Group's conference call for its first quarter ended March 31, 2023. My name is Jada and I'll 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; and Ed Prajzner, Senior Executive Vice President and Chief Financial Officer.

I'd like to remind everyone that remarks made during this conference call will include forward-looking statements. could from results projected. actual company's differ those materially The

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

Dennis Bertolotti

Thank morning, everyone, for thanks you, Jada. today. Good joining us and

significant to to technologies market strong and position improve continue on our progress new We Mistras innovative and profitability. grow capitalizing make

As grew X.X% this, our quarter, revenue evidence constant currency. in of in the first

XXX percentage margin an over basis we gross as of and XX% a EBITDA adjusted expanded Our basis points, SG&A of drove by down in revenue points XX resulting increase.

of condition quarter X.X on full These achieving X.XX leverage financial financial under results to by our way which we're continued end, we year, recent the reduced reaffirming below goal were and well our are And as ratio year-end. for with just bank in overall our also to line improve, outlook to being today. our of our most defined with

our the ago is the profit helped our in in points our our from in business, XXX the expenses margin QX, growth quarter. benefiting in quarter, addition year The revenues. saw strength of energy organic lower to by care business growth basis We health from in data solution boost rapid which gross

While a working an during absolute basis aspirational towards fundamentally reported to we on are in longer-term SG&A hard progress overhead due XX% items in infrequent our quarter, of our target few making was of revenue. up the lowering

online represented The which very brand, invest with and the growth, pleased includes growth including hidden Data included can data to which solutions, strong of to data and innovation. unlock drive of capabilities expect profitability improve release. and Onstream monitoring business, across our along in schedules a Century, OneSuite, we majority value see to to of you our our year in Solutions supplemental monitoring particularly continue earnings the quarter line now the first start products, a flagship New organization Sensoria. services, solid I'm the PCMS, with other the in service our various

service offerings via the roll-up. other 'XX Solutions solutions which longer current described We is within Data Note believe term. during Onstream's than it, that previously to customer higher the inclusion Streamview data grow is quicker throughout over industries. will that first of We data and represents permeates were consolidated in and all invest XXXX. Data solutions XX% X.X% area XX% exciting grew Mistras' total revenue revenue to quarter our geographies and our total about as the of compared by quarter now revenue of to of over for Solutions and Solutions we than the reporting software the this due early Data the revenue in its

in are substantial add guidance. are is line the credence achieve to why of Nevertheless, our can a that we reason confident expecting and significant increases the year full data growth solutions level bottom we we

to performance. in opportunities facilities benefiting responding for expanding getting new to our better us growth have utilize are competitive. to the order market their insights creating within data and this continuing continuing to data in to increase markets data area, Whether and to involves generated customers continued to fully stay by as We our demand them or customers. by integrate see quicker analytics, of customers their recognize the more the need investment Expect the well see need existing from to data new as capture optimize and that

Similarly, more the activities our our is machine, other particularly and complementary branding strategy and to to driving on take growth. testing Aerospace, services, inspection of in

to supply chain new faster online to address to we their move ways customers As industry, the customer to simplify challenge needs, issues seek continue logistics. and forcing

new we to square Ohio market, Heath, facility Aerospace operations foot our the to in solutions. are a our the demand adjacent for XX,XXX instance, For accommodate opening increased

help Georgia X installation new other of our supporting will issues expand products. grow ability their of that addition, Aerospace provide face, We to enabling our customers believe our chain markets. capacity the solutions supply as customers throughput some continued alleviate in well solutions unique expand and in CNC the to for other as machines In location to us are the our end increase and

project isolated opportunity the achieved sector, gains Defense which industry this via and solutions being growing share Defense in relationships, offset our over Aerospace delays progress the Note, we overall vertical. Defense our term, in are technical and Nevertheless, we a market in there seeking still and large consultants. the our some long believe established utilizing are is aggressively

into has of business record Our quarter its continued in-line first growth 'XX. XXXX Onstream the inspection testing of

is continue and the its serves upstream to both generates and This Midstream revenues expect generate a which to portion in margins, from versatility 'XX. of markets. data we robust it helping Onstream considerable and solutions, growth

growth our achieved operating the a There and profitability, was technology progress as and improving towards during leverage also future for quarter, such standardize in preparing digitize investing significant processes. to

like continues our that at to the emphasize lowest of prior first our quarter. financial for ratio immediately now to since the the to turn December Onstream to to detail improve acquisition XXXX. on results I to in like over more would would financial give level the with leverage our you condition call I Finally, Ed

Edward Prajzner

and or everyone. expectations. morning, Thank financial good Dennis, quarter for met Results our you, the exceeded

returned but despite to consistent that significant to foreign levels approach through markets operating currency headwinds. prepandemic record working We while of also fully continue growth to closely string together yet not a continue have

resilient combination all result Revenue Aerospace a space stable private currency in strong of is a to quarter. constant gas and commercial growth a X.X% in data growth was of improving results solutions in on significant oil across in and market, addition the basis and demand of markets. growth This a

are year. been also pressure more benefiting anticipate rate inflationary from with year, We wage a with pricing last last are now actions balanced had initiated year we pronounced whereas than this employee we which increases lagging

of and Gross quarter quarter basis solutions. were data prior up profit first Cost for expenses year in the the few compared sales improved to points focus to leverage containment expenses an infrequent prior items, in a general as primarily period but the can one specifically to importantly, $XXX,XXX the and due that increased remains our operating revenue. points due XXX is care and we to of more basis confident main business year, increase lower mix, a a health model. percentage reasons the the are compared margin administrative as XX we Selling, down

the North expanding was a the first formerly with Services, generated operating million margin basis American up segment, ago, year $X.X Our called points. quarter million, significant which $X.X of operating from XXX income in

growth operating of $X.X XX% million gross America's the compared and aforementioned an with our earlier, EBITDA in the Adjusted was growth, year to increase to in for quarter profit rapid was the most is a ago, data North addition mentioned to recent due Dennis benefiting also solutions. margin $XX.X revenue consistent the absolute expansion, As from million expectations. this

tax income benefit effective was Our XX.X%. rate actually the for quarter a

positive negative year rate full approximately In XXXX. primarily to Free prior For income year change effective the significant XX% million in to cash new operating commencing improvement period, encouraging the essentially was for flow CapEx modeling due for despite the of in historical improvement in QX saw $X.X tax in which was DSO. purposes, the year. a projects we first compared of in an would from year-over-year, flow cash incremental flat our anticipate we an an million spending quarter, trends, $X.X a a

For than $XX of expect CapEx million. less the we year, full still

quarter, million $XXX.X million. the almost $XXX.X debt down debt million paid net of We gross during debt of to with $X first lowering

this levels, earlier, group mind back ample access QX have been cash the of the comfort largest us milestone Dennis well of both in as in July provides As banks. we and Keep XXXX. a which some credit as our positive flow liquidity, XXXX. event down of regarding bank This existing we U.S. to specifically under agreement, of stated consists debt that availability first mature to our is and pre-pandemic until not access since or paid operating haven't quarter does

remainder the recent down $XX recent deleveraging around million throughout total rates, in increase the of the due Despite we year. interest expect year step continuing expense the still to for of the full and in leverage reference

$XXX $XXX million free guidance reaffirming are revenue the results year million, solid between quarter, that between million full to we and $XX flow in and XXXX, million adjusted of $XX to being first the $XX $XX EBITDA million. between the Given for cash million

stable solutions Given improving projections. our Aerospace confident demand we and energy data resilient outlook growth, continued markets, and in achieving are

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

Dennis Bertolotti

off business, productivity and customers capitalize markets year, progress we To improve now provide Thanks, in we bottom to quarter 'XX and this continue preparing growing, summarize, sectors so our better Ed. are to Data tremendous future and inherent and in we about fastest the We're will this our had in be serve the to growth. of beyond. strong first XX% to continue to leverage of efficiency strength Solutions line to the Okay. represents top ever-changing Mistras' a can that kick optimistic our environment. our Mistras making and

all service open with Jada, questions, demands. a the questions. Before lines offering while talented there taking please thank for the delivering Mistras' would highest for superior meeting on focus and I out continued to our up employees dedicated sincerely safe their your like And that, customers'

Operator

Thank first you. this question-and-answer of we Our question At Sakai Chris [Operator time, Research. conduct Instructions] session. Senior from the comes will

Joichi Sakai

the will similar solutions, and see data growth to into you Onstream about of Could XXXX we talk this quarter? something

Dennis Bertolotti

going are there's both the things as should those year. the in be solutions and those and data But We larger up the to So all and and PCMS online specifically will other ones, would the move lot both range have full onstream we wrapped that data of in monitoring. the Century double-digit obviously think projects growth new Onstream Quarter-to-quarter, believe year. out. change a in solutions, good a in for itself,

for up enough there's and make up offerings different service it. believe down, goes line we the one So of more other as that than

for had So year we Specific a to first quarter. great see yes, Onstream, a good they in everything there.

as by Our Canadian-based growth fairly were before and planned things growth customers had we we They're have of acquired well our we in since off that U.S. representation doing connections didn't far bulk company they and we in acquisition, But has them. and Canada. growing as our still line as just had leveraging that been offer. in that a the as of the the service anticipated Canada strong a have

Joichi Sakai

Okay.

Sounds you was would there? talk what rate quarter? the be about Sensoria And good. What can -- this adoption

Dennis Bertolotti

up It But expected, doing hasn't believe, fine. a the piece inquiries not if still We for inquiries, of just The the tests. much down gets and doing year, not proof proof questions a some we've still but many, on-shore better of the quarter-by-quarter more, because equipment. we where about the there. as full offshore we're concept we're adoption be little on there's We're on rate on that facilities out and been as doing of and we'll well. concept still getting or also had only

full very The a believe good. should be for that year we on still So it's good trajectory.

Edward Prajzner

And add Chris. that, if I can to

as time needs Some of run did now. this Like promised the It a needs installations year, time. Sensoria. run just last did little we a little of -- we

cause real in through. have to find on have just you conditions the these time we on just turbines can happen help now of wind of just now blade, where that with all see the real the Sensoria the you was to that have blade happen, installed event field. and Mother conditions a the need Remember, this Nature can that to customer farms Some on working some has kind

So that we of need some time.

are quotes so that Lots yes, there. So will of happen. happening out

things for and further. to year gave get and all similar on press how eyeballs many see those go of OneSuite. lots expanding things full groups then time It's another court many Same and on year. We need learn to we'll how numbers thing on We customers, you sites, run subscriptions. expand many this last things some how and going user

But is bigger into and Sensorium Dennis gave rolled work to our in the -- ebb [ -- again, solutions customer of moving and it, they them, you both there of will of to of we use they're higher the it going just envelope let little, here. said, a forward as aggregate how ] -- gingival pieces kind both them forward. data where the now, once to by But offering, which be a you with get absorb figure what from need out learn flow that some

definitely modulate double-digit little will in in as Data double solid through this Please low year. work Dennis digits. be all be It a growing XX% may some digit. double of that territory, model but nice, But bit, will we'll So it don't said, a Solutions year.

Operator

One question. our moment, while we next look for

comes Mitchell from Company. Our Pinheiro Sturdivant & from question next

Mitchell Pinheiro

Just a clarification.

think, So about down. revenue you but Onstream, the looking being Midstream good having that I overall talked I'm at How fit? quarter, a does

Dennis Bertolotti

customers, Yes. in the or to coming if parts on going mid One from mid depending that and gathering Mitch, with Onstream larger the the its easy be both upstream. it or it's And the answer, diameter, is customer; could that. into an there's X that a participates upstream is

vacillate was Midstream it that always for kind to rest into of things while good, Midstream. lot project-related where is of spend a their And just quarter flow us it. So only doesn't the with of

tied isn't first to other the two. just there in than be rest the the or revenue tied out. in coming only other two it, it read really and gas We of and capital is Onstream's projects don't two. there's really to to refining. nothing It's the just for of one other But see the So oil, Onstream

Mitchell Pinheiro

X I -- down there? is for What's year -- else for year, a so return -- do growth you for this Is a then guess, of some Or in in row, QX? And quarters. throughout it. been, quarters the look here outlook Midstream couple the Got happening? as something has a see we the to there

Dennis Bertolotti

there's on there I So nothing no, macro a happening. major mean nothing that's was level,

the others. the that projects. I'm There's last would level, have if some front sure I But On it's we're me capital bit would say or the micro to just not that the there's we year from I normal. in less in see QX of we don't have little and at. it's are where -- in projects areas given not a work more exceed

one that, of So just Inside on balance, we moving down. see like that as Onstream and a lot both. that's to say, from the market going, I though, just growth up is

push know you they customers more too. So a quarter, way if lot Midstream never in they get could next that

Edward Prajzner

at we permitting little in we Canada of lower some delays We U.S. too in bit in had There's timing, a the QX. in Mitch, had margin Midstream, some in and -- some actually Midstream. Midstream exited

for the we matters a feel confident timely full no, Midstream. there. there's year few But So other in

Mitchell Pinheiro

second was you're looks in -- have comp. last against quarter and up a the was highest you the Midstream Yes, I that. tough mean, year quarter it like coming

we for Midstream guess I in down see So this could another quarter QX.

Edward Prajzner

as CapEx, Dennis the It's mentioned. Yes.

it's You've the a Mitch, ILI, testing that got the quarter. like We lumpy happens term, over that in that, some that stuff distort we and any new inspection Midstream like But can CapEx one. time, Midstream. over on in-line longer given good

Mitchell Pinheiro

into as for the turnarounds the And quarter, maybe for upcoming things. what's What's the you Okay. that know, the for and X Downstream prognosis then we're outlook weeks the quarter?

Dennis Bertolotti

of But weeks barrel or folks, off we access or moving didn't couple anything from any go X people to the certainly to and because always they've the high any it because they put to where that. guess on times like haven't start volatile X 'XX, of major 'XX much. and don't haven't we if that reason I'd gas years like have a this you of that 'XX of of X There's seen oil. price There's really planned anything delays, segments that is year, around. most changes that. and our things nothing are I come we So the that see back But seen it's had or of

This how they're don't see So normal the I a see we'll goes. planning. that in the any more span, disruptions But think we've seen full into we past. gradual year in

Mitchell Pinheiro

on and then And Aerospace another was and in Defense. revenue that question up Is Okay. down. what was guess, I happened quarter? Aerospace Defense the

Dennis Bertolotti

is. it Yes,

in tens chain of trying and us a will say individual the days they the to have get who Aerospace all still labs COVID We've in Our and we're more chain issues. the always back dollars than through. suppressed. other that and the seen supply millions really for growth that capacity year supply more two lot of a customers customers that it still or are of I seeing got of after has these get were things are to have done the of through orders lot materials

So think demand especially space climb. think the starting is Aerospace, the side I the commercial I really the of and in demand, to

to there's in need I through get far and a other that lagging processes think think out the think as I castings as the the get there. But all there. I from done, industry things you it's what get forgings yes, for it takes all can to

Mitchell Pinheiro

just about I margins, on final you but if is, labor and talked -- being or then pricing your Dennis side, the talked you of or in gross question if has your as look margin you call, I apologize guess you increases. your matched sort late, gross the a the touch this, And margin, Okay. at -- now about cost just I so

in the normalize area of And year? so maybe start for should gross of the margin the rest that we to kind see XX%

Edward Prajzner

I a is quarters. about normally does QX other a that, back the than lower XX It yes. take feels can for level the mean volume. a bit QX in out But QX. and vacillate with higher right, QX that's and it little right. I'll little then year, yes, little about might be Mitch, Dennis. yes full X

We costs data You've helping helping. certainly got lower in us well. as certainly some health mix care growth. quarter. of solution, They're strength now, had It the helped

that bill just of did pay Last topic normalize, yes, raised, though, kind going than year, saw lagging bigger faster rates inflationary kind of level this the But did off. that pressure we you rates, effect. up of the

remainder sensing caught the and of kind of far not kind dealt all So with of and we up year. thankfully, for the inflationary We crossed last we're year, pressure thus that that over.

should a and very year gross ago, year slightly yes, but it not might hold it ever So go as maybe bring bps we here normal done be solid couple of years a should margin. up. in and have profit solid we a every year up We XXX definitely so

But balancing not any point. yes, very of rates headwinds hitting there maybe that and confident from bit out helps a there's this we real at rates bill and tailwind us pay feel little us

pretty on profit. is feel going certainly, we good So And mix to too. help gross us sales

Mitchell Pinheiro

-- Is SG&A. full SG&A question year? just anything anything there going one there on unusual more on the for Is

Edward Prajzner

same should last of gross headwinds, No, normal profit, tailwinds, were be pretty as year, much, outs we there recovered were again, all year, and no no cost pleased. our real

bad, year-over-year, to if pretty year, it you nothing not have comparable. keep we'll working overheads yes, we hard good it say And normal QX again, So again, QX, be and a as in should very lower. very flat, comparable earlier, year said or unusually

we So 'XX. for fully that expect

Dennis Bertolotti

are we energy for Europe, our in There's budgeted what up. noise bit it, over a for. little We exceeding little a budgeted it's costs like

and 'XX. and to they previous instance, some what in to countries, went [ happened in year back added For charged ] the

a that but So much se. out so it there, not we little called there is bit it's per

Operator

our for next please. moment question, One

from next Sidoti. Brian comes Our of Russo question

Brian Russo

believe start late. is the about nice, Downstream -- run but million -- doesn't somewhat a because mean, into late until got year-over-year turnaround quarter I'm this probably first in didn't revenue I first and revenue, the we was pickup assume pick on up until year-over-year I showed gas didn't call 'XX, missed and a I if in that refining sector increase pick April and rate on of in Sorry to season trying oil I But Because expect? just little until that it depressed the is recall, May? quarter, kind might quarterly a $X up I revenue. that the

Dennis Bertolotti

little the... of bit you want to restatement a about So may some the of talk

Edward Prajzner

Brian. Yes. quick just There was -- one there, note

that that the on there's noticed last you If X Up there. We -- Downstream. a small had press a release, year reclass and account misclassified had was We footnote a small on between table. an

did breakdown prior we So year the of X subsectors. those restate

it So year up We $X that -- from up. as Downstream benefit be last the The your Downstream is It not thought into right. there down And quarter-over-quarter. year. restate just prior we was was went you'll million did is as see comparison to comparative. number

much thought. as under we yes, good there, it a good and is So there in comparison, you're kind it XX%, seeing stable is some wasn't as market we're very now that at X.X% growth But it. that the down just solid, increase a ordinary, rate to of Downstream is with seeing

Dennis Bertolotti

try color lot as little colder to resources in more than to last. of this And January, to typically, period to and a a was hold you February market take because that, facilities the work don't in colder Again, then. in the many have Brian. a get try turnarounds the are available was northern customers add of times that the year There there to

little also helped more there bit January work So which was this the February, for year. and quarter-over-quarter year a in the

Brian Russo

which on I and Defense, you was year-over-year, Defense Okay. discussed. it to one was But of in Great. was resume 'XX. then fourth And XXXX, quarter that supposed it's the there project and in down Did first single actually that recall, delayed of quarter the occur? Aerospace if

Dennis Bertolotti

some still sector. we're going today, And and I'm been to working that. Defense conferences and the on We're -- such. still for still it's still working, we're -- there's changes there. but such vacillating, still That's No. leaving

is and but -- lower with huge while in overall, a bouncing go it's down. So in we're of there, still but kind there, we the we spending, there's expected, still up than around still lot of But materials see things we're although government what we how still potential activity still believe and a it sometimes it's and right, there.

Brian Russo

Okay.

So a I the contributor that year. in in might later -- be guess...

Dennis Bertolotti

Yes, didn't back come anything se still this quarter, for it us up. I we will absolutely. believe in do per but

Brian Russo

then Will of maybe a to low triangulate Okay. -- the to percent. end the end revenue Great. you high kind we X end mix? be are at And of to high it single-digit 'XX? of your say, of the top trying in Defense. just right, you line O&G Where the and do see of where comparable guidance, growth expecting, market it Or was year-end X-plus slower growth Aerospace in

a get mix things to that for And feel trying levels pre-pandemic kind to then compares might feel as that Just what comfortable of have to better look like? normalized. say, it

Dennis Bertolotti

Yes. we say I oil probably should and a be of always. would digit, double-digit Aerospace be around up looking the us, Aerospace and bit gas and getting right? the should the by a the -- The is looking grow is at believe to more little for think bounced of at is solid of year. going will segment side the one that mid-single by Defense from But Defense, growth alone, it Aerospace most I through would we Aerospace itself that we side double. Aerospace

Solutions throw working be will the which that, sure Aerospace military components, is itself PCMS times and Aerospace lot how Data Onstream. that we're But we same so A double-digit bucket. of will when is into be double-digit growth, on in we're much growth it not

at probably the they're we than while X to double maybe all for in below in I lot a project have will bit and Aero us, dependent, digits those all in one or X a in like to put out just would down mid depending more Data. segments, the now a chance that's gas growing say come seeing something different oil Upstream year, have that be side through. in contracts or other will big going on that. the you're be and just customer growth little of get rates, of a The different the you So this

of they have larger, X try They more that go revenue that the go nice volatile probably to rate down Upstream. little it's really bit of a down. don't all up facilities lot because probably and And a [indiscernible] are keep lot are less and a the is Upstream a incapabilities. to So those and a They and The staff cycle. a don't space on anyway. because of in more room at -- is the up are

So becomes that growing a because of for sector ] good in more sales. [ it us baseload is lot type

Edward Prajzner

end good all mostly they affecting ones, couple That's end markets. that down Another important strong. year, is have we not aside year. year, last as solid other a the there the putting gas and obviously feature, year. were thing. will is as the not last all other But here quite this the this maybe the it Data have balance all another -- markets, good element Aerospace Brian, up Yes, a good Yes, is of larger is although oil mostly year, growth had.

and are all point are service doing this us the well market the all now. the real balance good So markets bigger where end this I was not true across last think portfolio for all All actually year. That markets noncore well very and doing is geographies better doing a well. strong lines right are we have very year,

right So that's well. is end geographies, markets, the all good why will a as Aerospace up. this all I year the really really us. said, it. will, will to for one view is want good we're only balance all balance sync. private Commercial sub-industry across [indiscernible] Defense it's is pick as The you very But think probably and offerings, our bifurcate you doing Dennis they're back the that's service Defense And ways across strength delays the really space. now all thing has the I But now. think of it little way get subsector year right sort revenue of back as stream more some to that's it having any giving in a fairly

I be we balanced this that. year, and and that's -- relatively think robust they'll like all

Brian Russo

just question And All on then last right. SG&A. Great. one

full a down. you or flat basis down was million. said guess on year XXXX, mean which I You or relative $XXX.X to flat

Edward Prajzner

hard Pretty yes. it flat, keep Yes. to

Brian Russo

Okay.

So rate, look million $XX of revenue. we how it's of the percentage less what it should targeting are a or you that it? kind low run Or at still is regardless basically Is XX%.

Edward Prajzner

is And yes, back aspiration. SG&A. year. out. will It's year. volumes. keep the be to not rest for it XX% throughout the yes, the level it intention, the of It I believe it'll QX will particularly revenue level have to revenue will number, a the high and sensitive longer-term be flattish to not back year. number sensitive last it with it's particularly we volume, down But we -- up year's And every flat absolutely. will slightly will Yes, relatively

Brian Russo

Got last now, comfortably But just be priorities is you're can that it. and your leverage of remind intact. sustainable us X.XXx once Xx. might Maybe question, your you cash the I excess way use And one at Xx on to apologize. what well leverage

Edward Prajzner

one Sure. I'll now with that upon knock right can and Dennis But is start leverage job that. obviously, expand Xx. below down the to continue back

One, a Aerospace of the last then. some consider as is is that's to on more side, go some that mechanical Dennis residual do that. like labs. his customers, and optionality. quarters, is shop our that shop of until additive in expanded prepared remarks, put underground I'd free for ] things, other capabilities investment additional we'll [ flow some capital investing point, as options. we'll labs place to we've That's couple At in the going We'll So cash where mentioned said have

optionality right keeping and point now, where at that's consider capability But that some but us, organically acquisitions into building in yes, would the growth. selectively Other, that. leaning investing focused own on some growth. really internally can and again. become we overheads and out for in we're our not at well. have point, we focusing We side future what clearly relevant future, We're shareholders a may invest we're visit Maybe is data direct on the like road. driving can calibrated, front all at contemplate But capabilities now, some right that as to really 'XX, we'll we're now. on of keep -- we down to the point, a But But in and I of perhaps. wanted organic and acquisition tuck-in returns are really

Dennis Bertolotti

we're with and all ] want that facility, Brian, look some adding that doing do machining really shop customers we'll now, baseload and across gas to strong the these at. we're investments to oil, [ the adding they long-term Inside we're we of very all -- we segments in are growing. in more things connections smaller our in things very have and kind another our continue of where good data Yes, some of of making the there and we're some

the making So we've seen things others we're with all trouble selective and that in we're sure being aren't themselves a doing little get what that. in

out reason back any mean, investors need that see I we of get we because to get -- want don't believe I Xs. there's a into tranche But Xx there the we do a do number, believe to below magic that's

Xx until back optionality. So within a more stay little the do to you we're lot there. go more going to a you year, sometime it paying But we get is have belief. where pretty much can and else bit like below our we'll And on what see market below down. that that, focused at getting we'll said, then is make it's fun and going we And to this

Operator

closing like back now will remarks. it Dennis to to for Bertolotti I pass

Dennis Bertolotti

for like day. thank call and you. I'd Mistras. continued have Jada. Thanks, right. and a please All everyone the prosperous your Thank today joining Everyone, interest for safe in to

Operator

participation the conference. does for today's program. your in you This conclude Thank

You may disconnect. now

Mistras (MG) 4 May 232023 Q1 Earnings call transcript