Matrix Service CEO: FY08 to be strong turnaround year
Matrix Service Co. (Nasdaq:MTRX) CEO Mike Bradley said he anticipates fiscal 2009 to be a “strong turnaround year” for the Tulsa, Okla.-based company, which provides construction and maintenance services to the energy industry. Bradley made the comments during a midday conference call with investors and analysts.
“We are starting to see key clients commit to substantial turnaround work,” Bradley said. “We expect to see a strong finish to our fiscal year. We are focused on carrying through on our existing contracts and strengthening our underlying business.”
Bradley said the firm is pleased with its quarterly performance and with its future opportunities.
In a statement released before Thursday’s opening, Matrix said it projects fiscal 2008 revenue between $720 million and $740 million. Analysts expect $748 million. The firm’s revenue in fiscal 2007 totaled $639.8 million.
Before the opening, Matrix posted third-quarter net income of $6 million, or $0.22 per share, down 3% from $6.2 million, or $0.24 per share, a year earlier. Wall Street analysts, on average, anticipated earnings of $0.28 per share.
The quarterly results included a pre-tax charge of $0.06 per share related to construction project costs in the Gulf Coast. In response to an analyst’s question, Bradley noted that the third quarter is typically the firm’s lowest quarter.
Quarterly revenue for the three months ended Feb. 29 increased 7% to $181.1 million from $168.7 million during the year-ago period. Analysts expected $192.7 million in revenue.
Matrix Service said it repurchased about 730,000 shares for approximately $12.8 million during the third quarter.
“We will continue to look at our stock purchase program going forward,” Bradley said, who emphasized that the company’s price is “extremely undervalued.”
In afternoon trading, MTRX shares are up 8.36%, or $1.42, at $18.41. Over the last 52 weeks, shares have ranged between $15.81 and $30.36.
