Earnings, revenue fall at Matrix Service

By Staff Reports - 11/4/2009


Tulsa-based Matrix Service Co. said Tuesday that net income for the first quarter of fiscal 2010 dropped to $4.5 million, or 17 cents per fully diluted share, on revenues of $137.7 million.

Operating results in the quarter, which ended Sept. 30, included a charge related to a legal matter of $1.2 million, or 3 cents per fully diluted share, the company said.

For the same period a year earlier, net income was $9.5 million, or 36 cents per fully diluted share, and revenues were $186.7 million.

"As we had anticipated, the market environment in the first quarter was challenging," said Michael J. Bradley, president and CEO, in a news release. "I am pleased with the solid execution of the Matrix Service team and our ability to continue to strengthen our financial position during this difficult economy.

"While the remainder of calendar 2009 remains challenging, we are encouraged by the increasing level of bid activity in both the Repair and Maintenance Services and Construction Services segments of our business. We remain well positioned to execute our growth strategy when market conditions improve."

Matrix Service provides general industrial construction and repair and maintenance services principally to the petroleum, petrochemical, power, bulk storage terminal, pipeline and industrial gas industries.

Besides Oklahoma, the company has regional operating facilities in California, Delaware, Illinois, Michigan, New Jersey, Pennsylvania, Texas, and Washington, and in the Canadian provinces of Alberta, Ontario and New Brunswick.

Matrix Service reaffirmed its earnings guidance range of 80 cents to $1.10 per fully diluted share for fiscal 2010.

"The achievement of the earnings guidance is dependent on an improving economic environment and a resulting higher demand for the company's services throughout the remainder of fiscal 2010," Matrix said.

Revenues for the Construction Services segment were $77.7 million, compared with $114.8 million in fiscal 2009, Matrix Service said. The decrease of $37.1 million was mainly due to continued delays in planned projects and a broad based decline in our customers' capital spending, the company said.


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Tulsa World Reader Comments
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FUTURE WORLD, Tulsa (11/6/2009 1:59:47 AM)
With credit card usage declining so do there profits. This company business is processing credit card transactions.



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