MG - Earnings call transcript Q1 2024

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Operator

Thank you for joining our Mistras Group's conference call for its first quarter ended March 31, 2024. My name is Briana, 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 Manny Stamatakis, the company's Chairman of the Board and Interim President, and Chief Executive Officer. I want to remind everyone that remarks made during this conference call will include forward-looking statements. filed that the actual report company's XX-K other factors are to on actual and in SEC. discussed most reports company's can results cause differ Form The the with recent annual discussion that not measures this certain the accordance were call also prepared will The include in financial with in U.S. conference GAAP. non-U.S. these of Reconciliation measures financial directly most U.S. GAAP comparable the to X-K. company's the press release yesterday's financial GAAP related report contained current tables measures can be in on Form in found the in and website in the These Investors' available Manny reports the company's website.I turn are on and now Stamatakis. SEC's conference the the at section to will over

Manuel Stamatakis

Good morning, you us joining today. everyone. Thank for

achieved in up to the EBITDA primarily & The was Project and Phoenix success with XX%, quarter year. key year compared activity on in prior adjusted industry. to in the turnaround program our expansion as we the Aerospace we XX% up financial, industry operational Oil first initiatives. Revenue outstanding strong to nearly was strategic execute to a our our continue the and Gas and start spring Defense particular, In strong due continued

our increases, Additionally, from to consequently second provided still in XXXX steady record to and commercial reduced this one the were our high-performance and increasing again once that by gross a has Phoenix the be benefit will am emerged a beyond. this process, administrative and to on Project improved all-time growth. us expectation on consecutive and direction adjusted trajectory announced Transformation Officer operating our on Selling, generated results momentum expenses Consequently, each bottom and whose our With which a maintain quarter, margin. I we line growth quarter the hiring the strategy general, XXXX contributed strategic of into achieve and Chief both in a that put top be refocus successive further of we the improved primary successful of focus years.While implementation fiscal XXXX sustaining will strong reiterating basis, is from early sequential our confidence focus year leverage. are EBITDA of that price gaining the year-over-year and improve to

some first quarter. of the share thoughts me my on Let

Aerospace digits we X year turnaround strong of on growth markets, market, sub domestically the have largest & X internationally. you are in to mid and been organic up in needed year-over-year. line can closely & profit. I initiative XX%. strong activity Last and success our industries end growth customers performance Defense, space that up I drive Oil XX.X%, subsidiaries, Defense Gas and I making improve which And In are to and price us In & in up this fact, This Oil is we quarter, nearly we this Gas been our clearly price for important private appropriate with Focusing & was our with working for it also I far, be project levels and customers we Aerospace pre-COVID all returns demand. to in our making thus top cost aerospace we these sure for both objectives that the reflecting have increases market Oil was gross commercial our market and am materialized. value And XX%, the expand With I the quarter, our increases within Gas an progress and business downstream. included is in to benefited will for those to we our expected Mistras, that the our double has, quarter remain particular, back up, working growing. which first getting is want to obtain both thank to Gas necessary note provide all end contributed pleased and outlining and increases. are offset business I by against intention through to within North obtaining with say mentioned our we increases very initiatives. how continues growth to would which revenue focus, from seeing. Oil commercial both revenue and can selectivity. attributed and up This new America. nearly

market, to to in our accelerate As expenditures plan our strategic of most breadth to important higher-margin growth. we expand businesses their this continue to we customers provided capital services in these make and

Solution pushed year. the Analytical revenue out businesses that into Our project experienced back in some delays some Data later

All high-margin growth underlying Solutions XXXX strong line the on of are generate track, with fundamentals of we over Analytical and their to targets. in Data the balance year the expect

also continue grow will to capital invest We area. strategic to this

cash a to our in better in the operating actions flow bottom Profitability As the expenses, reduction and taken overhead first timing of we direct was quarter both first significantly our in XXXX. leverage, working improvement to invoicing, margins free first still least capital $XX leading Project therefore, best costs while rise. company's been line quarter There at than ever adjusted part free our the cash lagged our significant made growth, fall quarter. of mostly fiscal of The somewhat to causing net from other to flow result an customer have to Phoenix top line. goal related to in million and attributed progress leverage due And faster EBITDA. expect increase and activities, in to costs significant benefited grew operating a

end be report Hani to benefit on and rate upon initiative responsible invigorated brought we Baker and team, and a the gross for XXXX. Consulting, a the from project With Phoenix and are worked seasoned along we will to confident experience lead we projected best he have The which and Phoenix, of directly Project more. are and CEO he previously preeminent worked that now Transformation GE. Project executive our company initially leadership of advisory by and we PwC identify a full-time CEO the the improving adjusted plan to when accomplishments our dedicated phase. leadership Chief annual to is for transformation remains the individual permanent working million senior Hani managed with Phoenix of at a arising achieved Hammad for will with on completing identified $XX Officer. into search run EBITDA and Hani AlixPartners, achieve to expectations this President Hughes, Vice program, Hani's as firm Executive next track, First, an its

and deliver committed both third the finally, we our even progress profitable These place to And only the the greater creativity, history. be shareholders. continue to will have customers in collaboration have time any previously that to CEO to of company's everyone now that make that organizational to growth. enabling value led at our and are which My significant by unprecedented the have success. changes us had to and I is the energized goal and Our company and aligned next next are CEO our our our for we fully mission and throughout over organization our believe to also more cultural with of focus important noted not motivated changes the and but end quarter. I

to recent results. to like Prajzner call our this I'd turn on over Ed for our update CEO, Now his

Edward Prajzner

for immediate Mistras' Manny, share Manny's outlook I future. and enthusiasm morning, good you, longer-range Thank and everyone.

leverage profitable us will coupled focus and discipline to commercial and improved transformative on our allow will focus footprint new Our to our lead with results growth.

First commitment of continue to through Project implementation Phoenix. the quarter to ongoing demonstrate results our value unlocking significant

is high Defense an an quarter our organization an and the but progress, demonstrated reinvest line performance significant unique will is Solutions already target there This start of Mistras generate provide not capitalizing time do first made growth with funds our EBITDA focused will have versus our exciting to $XX bottom in our prior in and XXXX. While in plan XXXX to we also anticipate the of work more return, be is SG&A all-time million only as markets. this Aerospace a entire we Data as the And will Analytical initiatives the incremental reduction high-margin such we of improved adjusted performance growth one to for in great and achieve on shares This our what on opportunities year. to industry.

consecutive financial expectations progress. exceeded organizational making we the quarter, significant while For second

quarter from X.X% second increasing growth, marked consecutive the in the significant organic first quarter actually last quarter The revenue where year of we this fourth generated quarter. X.X% to

part which has on The we noted, to Manny benefit Oil were from turnaround nearly from a improved strategic implementation markets, up was the provided As & increases. of in focus, up a season. successful Gas contributions spring commercial X industry XX% largest end strong price our our in due

the expansion, to in to back moderate anticipating the stated season which last as year Although its compared solid April sector's turnaround level continued the activity quarter, into fourth robust turnaround half remained continuing XX%. growth continued of a turnaround, this spring to nearly its another growth, out Defense Aerospace quarter with are bounce from we due quarter of up XXXX. more the and fall robust second

the North to once business led in Our American and Defense business. strong and pre-pandemic XXXX. first West of quarter was levels robust by recovered Penn and in The Defense Aerospace again remains has market the performance our Aerospace

industry in which as supply continued results our as result consecutive increased are record Georgia the well our the of has third a For quarter, and The chain. business to for the new the revenues International also ramp-up over debottleneck as helping significantly of let this quarter, had services, up launches the also they primarily facility, term up the not the Aerospace demand to strong up. quarter. well immediate we were space of space as expect first in pace hold was Private business

As Defense initiatives, accelerate business in and one are we to Aerospace of growth our growth. primary investing our

from results segment So we expect the and year. strong Aerospace Defense the throughout

due Solutions noted, delays pushouts. start Data Analytical anticipated than had and Manny project to slower a implementation As

higher from claims the in reflecting health offset primarily This of a actions. Selling, were expenses care somewhat Project or by nearly expense year pricing headcount. administrative $X.X quarter. million experience -- a expanding general the down on Solutions, despite effect Phoenix.As first year positive remain Phoenix, and by ago, the working and gross our a Phoenix saw expected product by of We was mentioned of revenue of driven mentioned, to way savings full quarter, the reducing revenue XXXX $XX the and benefit being later solutions. still committed have through the goal full we Project data Data in in skilled our from during Again, year. slow we and is previously up we second adding which Both predictive were and growth, the area reduction will highly believe profit build growth the and are overall the quarter cost Analytical analysts for Project continued in focused the However, start growth XX% capabilities margin our with to SG&A implementation. investing this to we of remainder approximately we momentum million lead our of are X% quarter

the For $X income share. quarter, we $X.XX GAAP million or net of reported per

costs, Excluding This to income fourth share adjusted reorganization the quarter. was per tax, EBITDA million and ever up last $X.X quarter which million, performance. net was best $X.XX adjusted non-GAAP EBITDA quarter was or nonrecurring quarter. Adjusted our net other XX% reported EBITDA for of first the record $XX.X follows just

we in As an cash increase capital incremental expenditures, not first free generated negative in a year. of flow of and the the first working which is unusual for quarter result strategic quarter, capital

due flow in expenditures. from still remainder higher relates increase it Interest customer average generate quarter, to focused interest the capital an of by in free to to related related on XXXX, that increase flow improving $XX for an capital debt the the We the an cash was working outstanding. to for and balance in $X.X intently we the year least million which increasing in invoicing, in expense at million XXXX. are negative growth cash rate year increase we despite As $X.X environment will second of was and timing believe prior million the quarter this

on midyear, Our defined by of even lowest was is to if ]. ratio expect trailing of the XXXX achieve which quarter XX-month XX, [ X.XXx March modest Xx Based current anticipated XX-month our debt. ratio EBITDA, reduction to targeted only a this since bank the XXXX third the leverage projections, we due ratio trailing or XXXX, as increase been to primarily a in in our outstanding able be lower has

use continue have a strategy articulated cash primary reduction emphasize flow. free We our as and debt of to

be we to And flows. term. Actually, of achieved an resources a projections, on returns believe as ratio by ratio organic other excellent and X.Xx 'XX at based would financial However, is while that term, represent we achievable. we maintained investments cash believe growth X.Xx additional leverage providing we point, our the believe gain and leverage can the of expenditures free strategy, capital a it optionality flow. Longer in free superior cash that relates support also longer use current over end

So we these will maximize value. priorities to be shareholder X balancing

to your new the commercial with his closing for to days, our very ability profitable is sincerely our but take achieved. which more expect have While back significantly are transformative these in to this given expect outlook, XXXX before XXXX. appreciate We remarks and on work to patients a turn profitably, early there and continued our record to be would is we results we like support done been to results to to improved year. be new we on up growth. time, be focus questions. Manny in foundation shaping your objectives to At its are drive still to encouraging, a confident grow importantly, over and and set Most I reward both and additional call move your

Manuel Stamatakis

is Thanks, help NDT reward their safe, large can innovative can a compliant and companies that assets customers operating. their effectively Ed. cost keep market and who efficiently expeditiously

XX leader a to recommitted industry-leading are time-based with Solutions. programs been those that to trend integrity values. approach Mistras been this our Today, have software with Analytical these asset in industry transitioning via an increasingly our integrity methodology. challenges. For a been complex solve has risk-based we Data management leader from a solutions Mistras years, Mechanical risk-based has

manual This reducing also -- rework, of cloud-based help by the of productivity We standardizing processes, furthering are the inspection also field automating further boost today's reporting our excited process. the and with digitization about we development platform. are will

customers' downtime, of millions reduce will saving dollars. All this of

provide us After developed growing a the will trends commercial We functions. our a meaningful markets. analysis we've while in this to growing invest of profitability This for high-margin will a focus in and and our on and become continue this capitalize year business, our includes to on shaping strategy the also to part of introspection, ever-increasing future. our enhancing intense improvement keen it businesses an focus sales

XXXX, of execute Everyone in We generate our million people and and $XXX these additionally strategic is $XXX assure $XX free X,XXX announced $XX This million will on of reaffirming the this and to that exciting our full the to million. and right $XX that between objectives. very to on plan we hard adjusted every the And Mistras. to year and revenue Consequently, will put $XX remain is continue EBITDA that goals be and our and achieve time nearly an committed and place million. are we expect engaged processes million, guidance million to strategy, are believe are flow developing to I'm in cash previously working our between systems improvements. for day leading we of proud we between track. employees

You motivation can of organization. the feel that level throughout

has long At faster to top. term call done, Much this been company We the increase us that be I the would over are this bottom can your much the remains you to joining that the to line done. growth for significantly questions. appreciate a steady, to rebuilding journey. with time, We open like ask can than operator deliver stable a but

Operator

the At we this no. question Our Singular comes will of time, Chris from Instructions] Sakai of session Research. question-and-answer [Operator the first line conduct

Joichi Sakai

of of half Oil to the I to provide if about any just that, it your color -- Gas, you're get & you're could the second expecting to moderate wanted I saying more in ask there. wanted you year. sense

Edward Prajzner

take Yes. Chris. I question. Sure, the Ed. is Thanks for that This can question.

was April. quarter long was has extremely a early that turnaround an first spring running duration It this start So into had strong.

strong of you international, the name very across Alaska Mexico, board, it. we So Gulf were

spring just moderation, and a season, back turnaround little had little fall time we're cycle back down routine a cycle, expecting time to For a the more versus normal season. here run you regular the a extra turnaround in

this of which don't feeling to we turnaround season, coming to shortly. ordinary a up extra that's we're versus expect what turnaround wrap but here time fall exactly bit that, So in repeat an an normal season is spring

Joichi Sakai

going And margins Aerospace? improve me forward? help is for understand And to that were going capital expenditures then how mainly you the can they

Edward Prajzner

question, That there. Aerospace Chris. key Yes. largely our is the shop labs, is focus our Good particular. Yes, in CapEx in

be the that modest for you'll and stronger not have to that data So as quite revenue The little are impact will time uplift. started, field, but as the shop margins take a a margins, obviously than strong side.

But the So That's geared as that modest CapEx yes, quarter towards of forward, margins. although But piece of shops indicator smaller some bits there. at business. our business -- The takes certainly yes, now, the be saw. is largely going should growth business growth, margin that's modest profit right the we piece field for a higher really of expecting our type but we improvement margin incrementally some we're CapEx in CapEx is shop a gross that our good business, small, our higher yes, of well. what helping this

be So improving time margins CapEx. from it will the over

Joichi Sakai

then And you about you they SG&A improvements? more how one And talk improve? seeing for there? much are What me. last Can can

Edward Prajzner

question. Great Yes.

Manny, Sorry, add can you or to I first? want answer

Manuel Stamatakis

No, in. that. answer go I'll and Go jump ahead ahead.

Edward Prajzner

committed, due that $XX our Project year-over-year. Chris, SG&A Phoenix million would to We initiatives drop we

the than intention doing every dropping have there first quarter. to partially in that We down. got there intend We keep more of We that. halfway

revenue, expectation to at be Our full is of our XX% year SG&A.

Phoenix every has We expectation done anticipation have and getting work of already. the Project there. hard

along. now towards we very as and we're So achieve the that level objective. little continue at we'll that But confident to a we're to perform year have more goes that savings

Operator

from comes next Hunton. Our Tim question EF Moore of

Timothy Moore

it's I work. off. I know and a services strong see of and nice in mentioned through, bouncing with recovery And Georgia effort savings SG&A would facility. and to to and definitely know the Aerospace thought just America I upside nice North pre-pandemic you're of sales here. was only there shop in working growth levels, kind time the labs I me there's It's good back. you I which lead and back the lot start ample field believe paying Defense. it And shining on to know cost was

the labs you going are shop was put a kind maybe you that other and Georgia in I besides bit Aerospace Where facilities you're Defense? Defense?And of about can customers shop if be any there and other expansion, and wondering expanding? more to all talk So Aerospace to of going and little labs facilities if types is

Manuel Stamatakis

Aerospace Yes, question. sector, great Tim, and that. start can we love that I Defense.

the on more steps, customer, up steps markets. speeding or our they is that our additive be there is So the is very as to extend that Aerospace similar. we're piece manufacturing supply of third stamp -- fan continue that for Aerospace dealing customer parts supply would more their expanding. is for what nicely supplying through and stool to our mechanical wheel we space product chain, that's we get extruded focused. offerings can growing will primarily add third for. is the line area That continue Georgia a well. We're chain supply We're Private faster faster become facility And expand the area doing for is leg that our an commercial can a an our extensions the that's Defense beyond that customer. It Yes, more sector the more metal a work we of end that those testing. and turbine and motor, that to technology, will is blade chain, in Defense. back customers glitches service with helping

there. it the as a foot per part value to a test piece will to very It's good business. linear It's great per ROI. with margin send them. It's you're back expand per dealing add. and customer -- is directly. we we It It's principal continue So

good So sector -- and very it's our business. of a

their on satisfy there there's than keep And needs do private and that and business other We doing focus So more shop space. customer to we more compelling commercial there. for customers and Aerospace well. and like help really that well as will other them labs very serve your their

end that. in market in is very commercial second doing of and keep itself. hub for largest aerospace would Aerospace very we this important there I So important say more of will a that piece, us,

there. more with there. It's attractive a and more So very that we lots will keep do to more we There's can large market of us. It's doing opportunities.

customer. will for lab. that that. interconnectivity have paybacks to turnarounds a where It's us, healthy, our volume we and is that with that quick lots in assure where with prudently, judiciously they're keep criteria. and things a customer robust want But investing of it's partnering guaranteeing We coming the shop the nice, growing So quick business into with

they're we that do very it's on before review the do we And work we'll America, a well. to it's North behind new business. lagging will get back So continue of on rather levels. pre-pandemic our is very engaging. that for soon a to growth I as But well. strong little there really They're a Internationally, customer. recovery, as said, intensive be believe rewarding, we take just a trajectory bit as sector but

business us these global grow and market but the very for together board, opportunity. So across it's area more us all they a focus key a of a for Aerospace large unit a the real as in it's think and the of labs better,

Timothy Moore

that really I it not like the the testing year something how we you inspection strong declined some more just know very actually a to Analytical the in much our project off value Because investors year Solutions. important ago adding to quarter know was pushouts. elaboration. we if That's just of helpful just of the Hutton taking a conference. quarter. and at doing Revenue chain when to are more But December hands Data interesting the chain, ago. work EF their it's maybe and value so didn't the I as met It's from the capturing and in switching feel

of more smaller Analytical it from quarter. of half smooth maybe revenues, or But say? like kind Data you quantified projects? Solution would lumpy ballparked, and than really or just X% an was of wondering you're they conversion XX%. projects growth it in a if Like ongoing, only I'm September the kind rather are think I big was implementation up nearly

Manuel Stamatakis

revenue. other couple on an projects of really first that a we're Traditionally, off. data A But is quarter the that we of numbers exciting of it things by we This consistent pushed And lot year. collected did has how target meet end the get working is revolutionize anomaly. to on we're the the going ongoing in think was to have been field.

of something on This is we're that trying I is As the everybody digitizing to accomplished. collection working data. get mentioned,

We have get plan a good to there.

We We're have It the techniques in on really it that save will software lot And much -- do place their a able do with so much which we're data, the data be efficient. the our can to to and more and digitally, will more a the time inspection will that. change be will of working that get the scaling customers customer entire energy. and lot bargain.

Timothy Moore

just over fruit your renewals. It could low-hanging roll at to couple one as pricing contracts a of million optimizing switch more a maybe topic, topic like that least want gears to for years, other potential contracts. $X be those there I of seems over of

initial of has now? projects call has more aware, and been and through for that starting non-pass-through clause cut and be cost inflation, out which these that's I'm reprice add going customers? just where responsiveness You've wondering to features How pass made extra or it reception to cost And help. got the intentionally customers you maybe the just the inflation services. right to contracts, you're

Manuel Stamatakis

cooperative costs those very improve customers and been have that customers time. cooperative. to in profitable. of have and order going very difficult our The a to Costs in understand remain working pricing. be up, to is Many are the offset we This with to us been able need

but We And understand value that profitable and Sometimes regard. can customers as focus the that customers can with add on cooperate in and with work our we is aren't good to us. significant. keep to those business is our cooperative, us feel customers our focus that

working in to So it's area. out to improve and that quite wanted we well, continue

Timothy Moore

onboarding Transformational the said that search this involved just stay to last how be Officer? too I heard maybe you is you. I concluded if plan long Or CEO I'm with correctly. duration long for be quarter, you to maybe the end because wondering not One question might by added the you afterwards? believe going Chief of

Manuel Stamatakis

When onboarding, with the you new you mean onboarding say CEO?

Timothy Moore

that, Definitely yes.

Manuel Stamatakis

end of the of our committed QX. person hard that over. I to be to to the working for will with focus -- goal in and be the working We're we've the is past still to a have an right is working excellent to who do firm -- closely remainder Yes. doing we'll and when moving clear continue been to year path lot months positioned really Board, of cost the next be they of company the committed and to come But X that, throughout CEO, will individual. keeping place to work the still that in, come to is and by Well, has identify that in the and Chairman efficiency. so person really effectiveness on we'll take the with forward

costs. a to that not efficiently. to do our committed feel commitment. more lower our just to to and that. things And is are We do lower better there's That continuing it's it's We opportunities cost,

have about in to prospects the get that. were we're that important and as It's So CTO, to position. committed company. fortunate our Chief these forward. excited we're we that And Transformation -- Officer is We the that's Hani moving why

Operator

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

Mitchell Pinheiro

couple A for of questions you.

your First, price increases the what did to contribute revenue quarter? in

Edward Prajzner

Mitch, good gain. almost X.X% X% of question. XX% that to That's approximately

the So of that, magnitude X/X of a pure growth the of or about little so is less came a it. nice from significant than piece pricing

Mitchell Pinheiro

of type level, that regularly. it is does that expect know type things contribution? does X% they vary? Does to X.X% remaining for and what Or of you're that turnarounds the But -- this repeat that I the should in don't year, we like X quarters

Edward Prajzner

mean, I that's pretty -- good It bit, the of a piece vary will a little but is that a growth.

of have we little there's piece stronger year. that a volume think full year. for of increase been may price this on But a I top average the meaningful than no, QX anticipate

portion year. a growth of the pricing this be there'll absolutely yes, coming from So

Mitchell Pinheiro

was Gas And subsegments, was & Oil the in of concentrated Or and Oil equally your pricing Aerospace sort Gas, distributed market? largest Industrials? all & across it your

Edward Prajzner

was more up it focused was smaller We moderate focused nonrepeat to and up kind It size X, went industry-wise, of to initially accounts through Mitch. but question, across the moved X, we for on X, X, X on Great then smaller finally accounts. accounts. the Tier work, more board larger

So fixed of had work longer-term that have larger that accounts have we're pricing. kind The would more cycling through.

we're kind pricing population. that of strategic practices So creating through whole of kind to the structurally feather

work board. Manny process, working Phoenix, whole as pockets having that, it we we're process place. with a through strategy moving as commercial new of successfully there all we're as through Project still We're the up to And larger many was bringing offshoot the of a through in as yet. of building ultimate we're not We're working is place went fully into structurally it goal. pricing an But still customers pricing strategic but started kind industries, is we customer So plan discussion, we from this a across and process. to complete many, more kind true in as this that, the all that that across smaller the strategy across board of smaller but have that a said,

Mitchell Pinheiro

some in curious more and revenue like when downstream would -- through gross just missing. wouldn't at talk leverage, margin, have this you your type see a us quarter? And you your maybe I'm of on expected I'm such I look then nice growth leverage can why you but what upstream

Edward Prajzner

wasn't & Gas would the average, the than mix that on a margins whatnot. us side, necessarily there whole Oil especially lot and advantage have which margin business, talking up lower so was turnarounds yes, gross You're helping gross margin,

higher but sector the mentioned, So bit business significantly, the in at been have EBITDA up of That it in little margins. the mean quarter. for did pick lagged would I relatively as of large Data we the proportion increase. quarter. Solutions, best a up growing, is lower margins, a the revenue up a not Xx

So that it EBITDA the a helped great did more frankly. until quite average. significantly not trickles leverage up mix helped were down unfavorable, at It operating bit. little -- than sales but OI they higher profit margin greater, itself gross was a have of mix. Aerospace line, Obviously, favorable the

to going more less there. be that mix margin. that's sensitive had profit very sensitive So yes, to ideal we profit the and -- gross to mix gross than helped mix happening is is a going But be there the

up your but clearly, up of the of EBITDA many, multiples margin profit many there, whole lot top was revenue. So go bits line gross didn't your a

Mitchell Pinheiro

quarter. category. And ever you you've the private see fast the for private what in year? And remainder within mean mean, business, about I But the talked grow is expect growing. nice quarter? I given space Aerospace talked know like that, it growing? -- did should about Within I how and how the size -- a is Or space to it always of Defense, this you've strong is how we if within fast don't

Manuel Stamatakis

the -- is It's aerospace commercial growing Mitch. question, Good bigger and faster.

as the single-digit business. is but private not It's the a up more commercial of So It of that, kind sub nice growth. it is. is space large, as of story obviously, is to a piece Aerospace

So same yes, it's of is together. It very in piece we it labs. the those and keep growing, It shop and aggregated a is consistent, portfolio. is

and aerospace commercial focus them of many -- the would facilities certified on private space. Nadcap Our

shop through perspective. So it's the the same footprint both They're at good there. leveraging lab

So spotlight so. we and kind America do continue and levels to it's to and It for growing now It's aerospace together. will in commercial more and just the room moment. the But aspect. keeps it North it taking It's attractive recover like had to an when is larger fast. market. growing is bigger It thankfully, no, bundled back of pre-COVID that the

now, are there. markets. support is right another So labs the same but space leveraging or coming both to just them, space through is footprint lesser spotlight It's yes, because -- attractive shop customers. only one offering is private the on there that and the moment through We doing good private where they're it's like a commercial space so

Mitchell Pinheiro

for of terms the visibility you in are and Aerospace year? what then segment, seeing remainder the for Defense this of And

Manuel Stamatakis

We supply like up. that -- sector. great back The catching demand is in They're place. demand and a

our good on production got demands there more You've us. needs customers and for

very in same So yes, We that comfortable the aerospace a year more we of had feel aerospace, commercial very at 'XX. confident, great 'XX. see

sector, it markets. mentioned high-growth the earlier, investing to to the -- like see way same our is year that keep much there Again, one it continuing growing did grow we're of 'XX. as going. and in some growth do We we that this we So CapEx

Mitchell Pinheiro

questions. just I X then more And guess,

of Solutions? within do Data the are I bundled Analytical of business. have buy First nothing set sort but Data Solution do impression always selling under sort of software was build your is you Solutions that of Analytical that Is on that Analytical it program? most is separately? you the -- -- Data like accounts broader And services your and

Manuel Stamatakis

-- outside to analyze all goals That customers. offer for assets surface do of customers. our scratched work our on there. why that's business that's Data on one Mitch. methodology inspection don't them business, focus a I data. amounts to the yet. Solutions that within own the which and our of for customers -- help Analytical business business customer process of but to our identify of We is had It expand when. money, and We our growth them our risk-based -- the We majority saves continue enormous of feel in we that that a and have customers and base, we've part the larger But good are on we've is those Most and their do of that is

Our of be. the because the with plan digitization along is business the of scale is everybody that of next the our future. couple portion is to really wants That, for to where years data it really

Mitchell Pinheiro

a Doesn't or service a like Analytical customer, of things? sort feeder that product a and sort Solutions business testing potential of full new the a of Data source feeder? new for your a become Isn't

Manuel Stamatakis

That the That's can question. that's at data be focuses a feeder. looking It been an business, collected. however, interesting on

in format. has do coming run. electronically, analytics, own. still their effective that as we collect it's who which we've And sometimes can doing can collected us efficient and space. past and way the the the Clearly, for for matter it's data, business provide and no with that's in much business years. that an work us we been to when we get inspection A our much most get it of the efficient lot more do And what customers data from long primarily the can we can it the analytics is several But them is long that in of more electronic customer data on for inspection more as our help the

Mitchell Pinheiro

What did about vesting was million I from question. notice option shares restricted that? $X related quarter. that just that outstanding diluted last stock shares Just the up or? driving Is were or fourth

Edward Prajzner

No.

think charges are add-backs. missed affected. the I fourth some actually of the Phoenix, net there what would before that you a is, Project GAAP The of had quarter perspective shares have is on loss because with

shares. with dilute You loss don't added your the

are are not things that there So denominator. certain

So just change any in mechanical real more change -- to the there, just due gap not that's the substantively change, a numerator GAAP all.

Mitchell Pinheiro

of number And first quarter the the we for then so remainder the should year? use

Edward Prajzner

weighted number Yes, absolutely. -- quarter going a right use absolutely. forward, the yes, would to be current The basis on

Operator

And back like closing I I would at further Manny to remarks. questions no time. for showing turn this am now to it

Manuel Stamatakis

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

Operator

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

now may disconnect. You

Mistras (MG) 2 May 242024 Q1 Earnings call transcript