Earnings call transcript Q2 2023

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Operator

Good day. And thank you for standing by. Welcome to the Mistras Group' Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Instructions]. [Operator that being advised conference today's be recorded. is Please

hand over CEO. to would go now speaker conference to like Bertolotti, I your the today, ahead. Please Dennis

Dennis Bertolotti

everyone. us Okay. you good Brittany. Thank morning, you, for today. joining And Thank

During our our the efforts towards progressed strategic unlock to quarter the the fine of to tune our of business. second and Mistras further XXXX, organization strategy streamline inherent value

of our our continue was generate the contracts Consequently, activity revenue key of markets, exchange. to many decreased level. the of we effect games Although with down these in one defense offset consolidated for at of impact growth FX marginally a adjusted revenue total

several Penn in aerospace second revenue shop achieved drivers were record specializes There XXXX, acquisition, to facility In which markets spots in quarter our particular, revenue a which revenue performance. the record quarter. key West growth including bright projects related of certain a reported key

its inspection revenue quarter half year history, US compared quarter over achieved a XXXX record which revenue for OnStream pipelines. best for the was XX% prior by by of to its growth achieved has of period. OnStream testing segment, that in second driven Additionally, inline growth its performs first which The

the PCMS/New also Century Data of Within our Solutions, by experienced quarter, growth continued predictive business in analytics. driven its adoption customer

reduction significant progress outstanding There our a sales strong in reduction with a in and was achieved flow days further also contributing in strengthening position, our debt. cash financial outstanding to

ongoing controls improve leverage. operating Selling, general also to objective and and our reflecting administrative sequentially, cost expenses declined our

already half expanding year, savings implemented upon have we we second will this XXXX. seek opportunities, In first the during of the cost half what of additional

details bottom to will it provide I efficiency, later. operating improve initiatives these will contribute line improved on result. we As more

to the SG&A the that due but prior-year period, in favorable over and continuing overhead, an comparable also be particularly sales spending. We in growth reductions adjusted shift second expanded half EBITDA improvement a mix with with will modest stable revenue anticipate

strong growth and made our remained the flow higher that expenditures, cash we pleased XXXX growth in via expansion with which further businesses markets. investment capital I'm Our our very in increased to key have related will

a in achieved in quarter, expect XXXX. comments second our markets which end we performance will outstanding growth In on few First, areas, the continue just we our during performance through QX.

As by to had the reported Penn, our previously fueled I said, which standard customers' all-time alleviate its for our taking finishing quarterly West components steps help additional some to complementary on adding customers. in the chain highest price our of constraints offerings capabilities supply revenue, by growth of

of of byproduct such installation investments additional Georgia Heath, throughput increase of the as markets in These growth prior customer Ohio our new our for a is to solution, adjacent end as capabilities well demand growth the are of the announcement our a of machines business, accommodate financed This machining facility operations continued increased the the to to expand we where anticipate to as CNC opening facility. success.

work of later our defense We related back up this year. customer associated workload year will that our from ramps the in half our the first also anticipate as with improve the revenue

aggregate Longer term, expect we overall these in see to new on currently growth we backlog to participate ways continued in of actions, industry. are sector. finding in park focused Because and this servicing experienced the defense the aerospace

well year, ILI sector from XX% XXXX the over and positioned it future time their growth. optimism in business to That As of market the midstream best their second revenue results history driven up portion in compared is of and quarter provides in US mentioned, OnStream record the achieved all by their where half is about first the quarter, second highest last business. our

XX% evidenced Data our PCMS/New lines Century and growth to our and over OnStream expand, comprising least, not Solutions as of now certainly of but continues our offerings total business revenue. their around last, portfolio And of centered XX% year-over-year by

of We to and this performance. level growth are sustain working

of initiatives end markets, markets. our and growth faster other are than expanding are in these Each

strategy new markets. continue Our is these capabilities our penetrate to and to in to solutions expand foster investments

of to second more progress implemented, a which half even bottom various the line. improvement margin to the year greater should enable achieve across initiatives in significant see The and us

further turn I savings position information our over would our now give like on to cost to the Ed financial initiatives. to call you more on and detail

Edward Prajzner

you, And Dennis. morning, everyone. good Thank

upfront. I'll just that. Before omitted go rewind quick over Safe Harbor a start, I We just can the here. quickly statement

Just that will conference include remarks forward-looking this everyone simply call made reminding statements. during

actual Our results those projected. from could differ materially

in SEC. are XX-K recent that filed factors other discussed those can the of Form reports cause and most Some our the results with

in with US well in discussion not comparable release GAAP on our in accordance report the hall such SEC of as also certain investors in can include the at most all conversation this were the GAAP, related be These current Form will directly prepared US conference are to which the The reconciliation in measures tables measures found website. our a contained as available on yesterday's press at and section reports website X-K. measures,

progress truly quarter it for another meaningful Mistras. that, With was

end very plan, elaborated. as are our Dennis markets and are per legacy stable, expanding Our markets key growth

the We progress efficiency which are fastest, our sectors the wherein of service customers to inherent steady productivity to can strengths making better need. capitalize that preparing are and Mistras growing our on and improve leveraging we on market,

adjusted have we and to improve profitability XXXX, been cost margin steps February sustained exploring in savings. ways and meaningful EBITDA and to achieve announced As improvement

refer as identified. phase the this project, completed We which were opportunities initial have Phoenix, to initial wherein we Project of

We phase undertaking next can now the validating prospectively. actionable of implemented initiatives, which are then be

third the at achievement after is such towards the update further We XXXX will opportunities. of of progress made quarter of end

which XXXX. in $X.X savings of approximately XXXX, annualized be $X.X We of million, taken realized which actions expected cost approximately certain are to are to have expected already million yield during

North functions our to $X.X in were cost EBITDA be original a to overhead SG&A within $X.X operations Most to in included XXXX the XXXX. of million were of anticipated and guidance in savings these are for million adjusted the are for American line. achieved hence and savings our reduction related classified related Approximately, of budgeted

Second result budgeted from of a XXXX or of down ongoing X.X% cost the sequentially as SG&A quarter control first initiatives. the by was million quarter $X.X

second For XXXX, of initiatives, cost productivity related of related and reorganization our the costs savings million primarily efficiency initiatives. ongoing quarter overhead we $X.X to recorded the to

professional quarter, the fees certain charges restructuring charges these second changes organizational For included and structure. our associated within with made

costs half original $X.X year. of For million in $X.X for outlook EBITDA to ended of we to in first over expected June was months this six million the taken are the course expected and XX, reorganization recorded total contribute XXXX, adjusted which year Again, the $X year our actions XXXX, the million. for of full the budgeted of

range the Interest quarter, year-over-year and down over despite commitment was second rates, up the will the benchmark full-year debt, sequentially. With for the be believe our outstanding continued prior-year in expense to now The increases interest led benchmark to although expected increase $XX respective $XX now reducing to year-to-date rates quarterly remain periods. we million. expense duration, million for higher to longer in of a

by nearly provided was compared to six activities the operating of cash prior $XX.X in an year-over-year. first for million $X.X increase months year, the XXX% net Our million of XXXX

year, for compared to again the cash of XXXX first prior million of months $X.X the in a Free $X.X significant improvement. six flow million

improved sales attributable to performance during primarily an year. the improved outstanding Our cash days was flow

XXXX expenditures we as million to months by the growth. are $X.X Capital foster increasing increased versus six of investments first

million as December of March of as million million $XXX.X was June June $X.X as debt of by to $XX.X XX, XXXX. decreased $XXX.X the Gross June XX, gross compared million XXXX million quarter to XXXX XXXX XX, from of XX, XXXX. during $XXX.X Our XX, ended debt as

Our as net of debt $XXX.X was XX, million XXXX. June

improvement reduction working proactive quarter, turn due actions, to we wherein cash did through significant to it. in capital lead free keeping I that flow $X as It's days cash debt for quarter, the June in XX of contributed as reduced under can days million about was, to outstanding XX. million to further improvement, that of which the fact, as aggressive, flow a to said, $XXX the strong make as during especially outstanding There levels sales we in

reduce prioritize and our can strategy use debt other investigate of expect to Once to we cash flow to means intend X growth a XXXX. and leverage as of allocation our achieved, continue end reduction We we evaluate cash is accelerate debt by ratio shareholder and free below uses the that of primary times value. as capital to our to flow, level build

the million million the year, up quarter, the compared quarter and initiatives. ongoing $X.X expenditures growth our for ago $X.X million $X.X were to investments our in year again, Capital for up reflecting

current updating guidance savings. our As press reflect on to focus conditions ranges and release, cost profitable noted and market growth our we in are yesterday's

and and full $XXX Revenue $XXX XXXX particularly for between downstream. now oil gas be the reductions million, expected in to is million due primarily revenue, to year legacy

XXXX, certain to $XX million million, million have included be our Adjusted $X.X savings is hence I of realized to budgeted which of original EBITDA to which now was $X.X earlier, expected had XXXX taken annual And expected yield for is it in and guidance stated are already cost we in year. and in for between $XX been the approximately expected be to million. as actions

expenses impacted cash to flow flow the the now. company's being adjusted the free cost The the achieve flow to guidance being aforementioned to cash Operating required of cash addition the is million of cost in excludes savings. due by will year anticipated certain reduction between over the expenditures be $XX $XX million impact the adjusted higher capital cash in to certain for EBITDA to guidance cash $XX adversely expenses million achieve savings. to Free guidance

an increase XX% our of of in of Despite controls and increase nearly midpoint cost represents our a leverage. X.X%, the outlook, operating the on effectiveness revenue the prior illustrating revised anticipated EBITDA displaying versus our the reduction continued year guidance

that you'll have you in period by in editorial for supplemental gas reclassified release, we notice certain retrospectively each unaudited oil revenue included in quarterly the XXXX. see One and category that note, will subcategory the press revenues tables

between their further certain in the subcategories at year, reclassified up, classifications gas for comparability oil looked we within respectively Specifically, and current and were integrated year-over-year. and analyzed downstream providers, mid them

XXXX all the the being adjusted presented So classification in year. we within to in conform order with quarters the current

efficiency creating aggressively significantly unlocking better our to shareholders services key line leveraging to initiatives productivity value committed for with commensurate actions our improving and value performance. drive we and is return these bottom Mistras and the provide, growth achieving our for in and that by investing

improved benefit in that appreciably without first the results these to meaningful the half half are growth. the The of of consolidated performance actions revenue lead expected is second

his we now move over questions. your the to as I will up take call to Dennis back turn for on wrap

Dennis Bertolotti

Ed. All right. Tthanks,

gas and Our year-over-year in up offerings. Solution for oil strength nearly to is both Data business quarter due second the half X% OnStream the and the first and stable, both

on West at of revenues levels, this recovered saw quarter. aerospace expansion expect and strength commercial growth previously chain. customers their constraints reflected in from help the benefit the Commercial to aerospace in record we nearly defense to Penn where fully is for revenues, to as and the revenue of the discussed we with our business, quarter, pre-COVID aerospace in alleviate has an in XX% our supply services shop This increase shop

remains Aerospace opportunities. focus there a are significant defense where and we growth area believe

Data quarter, of the now the revenue of for our and year-to-date. of same Solutions half XXXX. in growth consolidated Solutions now XX% to consolidated the in total for represents of XX% compared for period total full almost revenue has our Data first recorded XXXX XX.X% as X.X% growth revenue experienced the a

being our in gas. all of Solutions segments, in and our Data including virtually leveraging revenue oil industry vertical is legacy core generated

to progress, in our As steady productivity making Ed improve on our preparing the capitalize to leverage better sectors efficiency of markets. elaborated, and Mistras are strengths and inherent we

momentum is increase shareholder controls, which expectation cost contributing this next will our value. benefit positive towards margins headed year, should all to building into continuing from Our create that also

high the initiatives is growth. our As our transition I in a and capitalize result the growing cost more savings demand our am to offerings, profitable that of into margin on optimistic for our growth Mistras business, accelerating positioned

and like to us industries. serve respective Project short base, current in their But technology strong allow costs designed investing emphasize them with improved term on focus with better to technician overhead revenue is our our I'd our in This in to before turn to taking will that providing customers tools our your our continue Phoenix expected questions, calibrate level.

that much but going well is are worth this acknowledge resilient will and a difficult I become process through more forces of going it. the we effort forward some and stronger decisions, company result as the

and ways on are of growth portfolio current in finding to we focused expand our businesses. Moreover, new areas keenly revenue

safe and to stay I all work. focused how who kept of on important. of their operation employees year. the incidents the is we our this Example our significant what is thank also sincerely reduction vehicle in to want This have our of shows focus this know of

eminent our leads are them employee managers dedicated them focused from you to project share forward. out meeting dedication. we safety of learn and I moving well forward. as how please project looking move many there, I'm catch up where later as industry thank can as for with Lastly, forward To Mistras this our month, And the with on your stay every we

open Brittany, please And with the up for that, lines questions.

Operator

Instructions]. [Operator

from line of Sturdivant. Pinheiro First the comes from Mitchell

Mitchell Pinheiro

I was curious.

out the called it quarter. sort having typical, looked basically downstream? as a impact And business? was expecting and a I flat. Anything You downstream of on numbers like unpredictable type Or new? the the lumpy, of issues Were what are the negative is this with at lot more? you

Dennis Bertolotti

as little out exactly flat. expecting of were you're right, we quarter. but Well, more bit the A up, stated, were Mitch. we The numbers

customers faster in quarter with the of the their Sometimes, expected, than pulled at them just other this coming the Or things, year, didn't the second. heat the and we with are first got you they keeping times, see productivity up like facilities. are off throughput and and Other spend. in things into

it's a So still business. very difficult

and look activities I'm understanding them. they plan a time Things And time the find with move than it things different they customers it's they at time without neighbors what to to going are too and hard run out it's restrictions that anticipated all have I'm going in, up for what refineries. They as at like to to more I much end there's of in but that too because their lumped and want, be as then move talking out much make labor certain they would. reasons. them and there they trying what trade. having it so to knowing around Not to try a doing the change like,

it. sometimes reap spend off off coming can And what to and they're still trying they their just

So you're right on that.

Edward Prajzner

clarify, relative made to comment the was we To the outlook.

little, up actually for was said. do the it up downstream quarter modestly as for expected right, to months. You're a just and six nicely We Dennis

lower we context year the for outlook for the this year. the up the it at reason year for gave we point the for is both the thought first quarter than is for little adjusted. a the So Revenue half. full and being the But is

Mitchell Pinheiro

Or Is this customers? of being sort conservative on side? on the with specific downstream based conversations

Dennis Bertolotti

You talking half about second the protections?

Mitchell Pinheiro

Yeah.

Dennis Bertolotti

where what's don't aggressive conservative at. know I not sure or it's anymore they're when even

do. lean to same the we're our too certainly So it have hard going if not into customers questions we

can win have Can But right? at a too, go more? the they you discovery play other you longer? could anticipate? they Can didn't the that always But Certainly. same point, way it

Mitchell Pinheiro

on think there thing services, up waiting flow sort. of Is since bigger backlog get around last from Just the you equipment pre-COVID, pent of to? seeing I've sort are for the Are to or yet you projects that companies demand some delayed have new that through? and like, been pent delayed still seeing for, a this, you projects, demand up these

Dennis Bertolotti

and there for little the Canada it. aerospace over-demand, international to our it's things push amount dragging It's huge these undercapacity many. as a of North America, there. through Mitch, bit the side, and So of the side backlog that's and huge do same on basically were right? and sector, if aerospace taking Domestically, do I US more them by that processes into break backlog, in things is to trying of the in on one opposed facility all to

and side, are much density up just refinery. bigger, specifically, a change population field for that or the the because In don't at in in harder, it facilities like, have didn't people, COVID really of mid those

stuff, get there to certainly, still and smaller you So, on the work the but upstream, are done. camps had

they what could. doing they're So,

mostly mix. that a you're is to. It's where probably The referring refinery

on that play CUI insulation catch it's things certainly very corrosion up There's under customers very spend biting but customers things. the There's and who now, are there's are is like programs. that they're money to Sometimes watched and trying and spending scrutinized. heavily

that past. So there the of a the a of with of a on in catch bunch lot to people for up things isn't money lot excess happened

Mitchell Pinheiro

of change?! And some from doing I out sort XXXX. doing. cost and still you I in you overhead you Ed, G&A significant Project here or of me that be, an to But it's can part two early. do maybe you you're percentage of we reduction. if of sort the still said On can of then examples some EBITDA things example give How should Project Phoenix, maybe this type is can savings give expect Phoenix of you're know it's a of this what like margin early stages? think know knowing

Edward Prajzner

validating Again, all taken, now. We or seeing done less actions the we've study service we've end We're And work to we'll just share But the QX. And actions a some do to have how our lot customer. we business, how more at them in the looking still we complete this really have rate. the run of study. to more you're it's forward. operate the going time essentially,

combining overheads impact support that getting combination the It's tightened some It's just differently. footprint, how And together leverage just at has of the in and really really in looking or whether line to and do. here making Much really down up, up and this headcount. at work office now looking to agnostically. roles, We're of we're goods more been back roles, facilities line automation focusing cost sure there, business. the combining really and But things workflow we sold some reducing been efficient. still It's the that. of systems they're SG&A just we're a

a really really we're the really serve how what at do But much more doing deeper lowering after, going customer, typically just that. is a enhance of it's to difference holistic come is combination the just to it We we're from here. time. It's to things. the look going this This all dive, cost

the I we're completed done. in you're of of mentioned think, the kind that'll going not go from of to But that quite of right to days during now final taken not them the little call, to at Again, in wrapped actions us we're stage have We're a we million final in kind Again, we'll because going the front and say, be that here. run further. yet rates a now. We're but far, $X what get have the actions up. all really validating XX for lot more, more we've seeing thus that of steps where bit I

Mitchell Pinheiro

the happened – the Just last lot on that down year. in what's business question, what cause…? a going It's was just in a it generation last in been weaker transmission quarter? power would and business I'm that curious

Dennis Bertolotti

much it's end fairly its just a compared to really comps XXXX, you're Mitch, We starting long quarters had straightforward. new is very of still When weren't for there first basically project construction at down the life. We're a XXXX that previous. for the of yet. two a see in looking to paring we modest that to

in aggressively these of energy part there'll So for be there like getting they're but that projects. tough – offsets. world the from some may on power, And project. more. find that. And getting We're other looks be not looking one all comps we're that going other. LNG to for us looking out for at things and to other now are We're to one looking We're the

to been this find So, a off replace just that's of there nice been coming for and ways And many, been we'll years. many is it. timing one

Operator

Singular of from the Chris Sakai line Research. Our comes with next question

Chris Sakai

Can some just to declines. Phoenix. headcount give the percentage And more mentioned you us decline? about there's I ask you of that wanted Project

Edward Prajzner

of some actual we've significant not that what heads fairly but number, the that consolidations. of It's thus minor. in that Again, done piece facility far. is disclosed the We've number

There's number we've in that Some as gone reductions a after. of things professional well. fees

point the going of at more now there's still to we're we're forward, again, still looking do. So,

number. savings or point, be are in the yet the number. we've the into is we've action to results. We achieved the of million into It done, $X heads at number run study but actionize $X significant this will was of some disclosed a looking rate putting we've of XXXX not of which just million that not Again,

footprint the back efficiently looking office business, able what want support don't We it to have to the just support more want we and Again, from is we to we're harm be the obviously. do. to really

Chris Sakai

As any is – have profit that far would gross on as would profit? effect any have concerned, gross Project Phoenix

Edward Prajzner

margins there'll in the the modest primarily more modest more But, indirect a some have yeah, it impact it, versus have Yes, sold. attributable line in cost A You'd SG&A but Much of savings to you'll overheads goods of the in there. benefit very line. be into cost COGS of up to in will SG&A. some goods sold. fall uplift

Dennis Bertolotti

them how into XXXX? capital should of for rest and For at year we the looking expenditures, going the be

Edward Prajzner

labs through equipment assembly to specialized shop a all talked on, the We're work over particularly that full We the backlog OEM new million mid-year. of million. we're good final just for saying is there's get probably through the year. happy done, $XX work taking steps aerospace for on do to in up expense. going the capital, customer new million, now through has the said new it's $XX $XX where had there we're would the we'll nice There to chain for supply help break it. side. parts call, in things that on, $XX do it's our expansion And accelerate now we We're Dennis about number, incremental million investing aerospace it's that It's

CapEx pre-pandemic. was That's of sort think stay our back will I yeah, that So, where up level. at it

that million You had low it range. in $XX

investment So to into the our real additional next after, for and all don't good customer. up bring business at go we of million there's shop if be to labs incremental to in $XX some want leaning this by it where surprised and margin but it's good year,

real with help be to good is that I So, and payback us Because on clamoring elevating yeah, good that think for them with just number there's customer reasons. here the work immediate for it we'll now.

do It's coming new, didn't for of not delayed brand the we things customers. years. CapEx last that It's is where do that's So that looking work we're to from. expansive couple that

Operator

Sidoti. line next Our from Brian question of Russo with comes

Brian Russo

curious. Bigger doing given to you picture, or Phoenix. refinery fluctuates side costs all these all when the just oil revenue I'm top project gas? for the on what the on the and and Thanks nature avoid in unabsorbed driven uncertainty detail line of are Project downstream

Dennis Bertolotti

Typically, the amount greater during spring our fall the into by coming system, of are of peaks by of week. density certainly a more but much absorbed that work and people

So lot it from I right? a isn't of have for weeks, So hour around they go that all excess to XX XX XX body the sitting work. to waiting

is, In other. fact, do we what week we international Fridays, have domestic surpluses from can equipment, call. where's move do to to on We we the our in the and people, and where and that skill every management talk one a we have resources sets

So try to people we're balance always moving to around that off.

and we you your to the is, try do just really and trick in very we to additional what it because an waiting we at on try fall heavy unbillable, within But to move for keep. for the try upsets keep skills it the unbillable And not load is on keep offseason really, folks most X% X% X% to training. watch a our to costs. down to that the and spring people of And

more to to people else new aren't market industrial get just we're people food, used not cars going to are And of else. many and move now to people apprentice everything because I because And similar as we the the and and on and bringing competing other That this vendors fresh us, into biggest we getting trying and a understanding the say said, being is are if in the access customers just the last folks and bring work about more a because wage. somewhere retail, there numbers of in setting months apprentice can getting XX you that, problem the to starting need will need numbers work. with an in of saying to

doing just do of years. now the usually So working the to we've is But we it's into the spikes we difficult and more than in than market that, labor over been we the certainly trying because out build up. the been had it get more past by of to miss peaks

Edward Prajzner

this your it's I Brian, is I the Dennis add leveling think to think, really say, help just Project out. in it's more can would that, I I question If And Kleenex saying, what help of to doing context, what's things was area.

utilization – looking and, give to a just CRM thing. top our example, cost an EBITDA looking we're Phoenix an Like, what we're at us? is hey, out more As data than bottom. more enabler, not can

our better and So out ways level work we resources the our at have, going footprint well are and better different to more we the resources, after the load go there as diversifying even kind niches load to utilize looking and whatnot. amongst as existing out of after

it things is I at getting of the and you're will address inherent those to lumpiness is. think, help, what looking It the So some it the is at It's what it of It there, business. is cyclical. business.

part bigger ebbs why stage of time some us really it's just looking about look picture. to Phoenix is as Hence That the kind and what at of is through and be in of the it our and well. we set think taking big smarter let's resources Project So up how target then after kind and flows. we're going

Brian Russo

going I'm trying $XX off and is work or XXXX. million revenue slow forward rebasing get if into to resume? is the generation recoup downstream that is from just to you at down? completed? On the power million result the that to work contract Is you're a can the $XX and it the of the sense, due that's Or that legacy of revenue forward million midpoint, defense being of reduction primarily some midpoint just to going project forever that that's lost shift a your winding in is $XX

Dennis Bertolotti

going last let not It's and think off as weighing – decline. first you take during it'll forever. onsite we certainly kind Ed I'll construction. maintain And It's to run of what do half if as nowhere but don't is thing, the far stay kind the a he near of and wishes. project go a into that's as we'll structural change

project that'll it that's and fall it timing didn't we'll came but So I for activity, we off, just off, as find we'll it. that. for normal Like find replacements get the replacements and but perfect say, wasn't

the changes of refining came legacy of more The concentration the from. the part is of

We expected though discussions oil forecast we this earlier the more and like about. year, we especially extent we and – we in didn't for of said gas, grow out original had to even downstream, grew that

So, changes believe that that's able years. back we'll be normal just we into to these get upcoming

Edward Prajzner

is essentially affecting down. we full-year reiterate bought yep, contract But for, defense power expected. That said, revenue the drop definitely not the the That's it's the bigger off, full-year Exactly, as whatsoever. That's affecting to that, startup, reason the That's we that's that's outlook than sunsetting slower delayed is planned, this Just Brian. the outlook. budgeted outlook legacy piece thought. expectation. hitting not the Dennis downstream real why gen

Brian Russo

clarify, and strong to all gas this OnStream oil just in I'm subcategories. that and quarter. that it's category the I the experienced Just June reading looking quarter correctly? oil in right? OnStream that's Am revenue year-ago and growth sub is really revenue versus performance gas the at Because upstream, the mentioned of only the you –

Dennis Bertolotti

it Brian, on you for the size think Truthfully, but customers. of so, depends the the pipes would we're of that inspecting the

midstream, sometimes Sometimes upstream. they're it's

that the pipeline work probably But So OnStream. a the it's time, midstream our for of and other inside you're at. looking there's ones other bulk play

OnStream [ph] previous just legacies is things doing acquisitions of So that the in also such the such core some Nature you're But and from that both upstream seeing as is well. some the other of in sectors. is

it. one rest a function always So happening of what's it of just It's other. with drive the doesn't or the

Brian Russo

the just mitigate you're backlog, there I a that – business. know any But like roll work out disclose nature because is off. pipeline of pursuing when of sense right, don't help you the there it's projects older legacy to of guys

$XXX opportunities get trying midpoint. sense that for market Just to of above a million the growth

Dennis Bertolotti

time in amount talent all In to defense Navy contractors backlog other need and out and and needed. there defense, welders military of bring There's the in folks There's that. a machinists participate XD and NDT aerospace. We many in with trying the the that's backlog and huge a all huge there. and a there's backlog huge from new and

So future. is in grow see we continuing aerospace the to

overseas up to what places don't said oil building gas a they the in have trains there. and to have where trying excess earlier, projects there's in locations as far As that out of lot There's ship we like LNG multiple and multiple that. I sector,

are to So things up. built of we're construction projects capacity other there's a and that still into. There lot get looking there

and growth believe projects in there And individual seeing them would are gas, still not sector, you contracts be that to in well. no term but the to other our see we oil but longer is won it, our there West Penn, growth as capital continuing aerospace, sites, sectors, in maybe obviously So and there's a data, grow. of lost one OnStream, issue any those lot out at

Nature the that call line growth in at in continued folks, more and see for, like, like wins we Gulf We that Mexico of places upstream looking what in are would of our sight. our

they Sometimes out just reason had customers we've whatever It's on. taking haven't their because working already. one We've things two longer own waiting been are they're of anything. for announced quarters

a lot know. a lot there But things they're major there's It make to just Maybe So they cost of there bit a it's their these slow changes. on of going before changes. that is little out seems on don't up this where watching year. I own moving. kind issues working

Operator

further at showing for you Thank so questions to now will much. time. I I'm right. turn the this back right. Dennis remarks. no All conference closing All

Dennis Bertolotti

you, I to call interest our And and forward with Brittany. business an please our towards for progress achieved and Thank next thank Everyone, look to ongoing update today. Mistras. providing prosperous also the everyone your I'd our a on safe day. initiatives on in Okay. have call. for continued you joining like

Operator

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

disconnect. now may You

Dennis Bertolotti	President and Chief Executive Officer
Edward Prajzner	Executive Vice President, Chief Financial Officer and Treasurer
Mitchell Pinheiro	Sturdivant & Co.
Chris Sakai	Singular Research
Brian Russo	Sidoti & Company

Mistras (MG) 3 Aug 232023 Q2 Earnings call transcript