This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Matrix Service's CEO Discusses Q3 2012 Results - Earnings Call Transcript

John R. Hewitt

Thank you, Kevin, and good morning. Today, we'll provide an update on the company's strategic plans and investments, discuss the operating segment changes, as well as our results for the quarter and 9 months ended March 31, 2012. In addition, we will comment on the change in our full year guidance.

The company completed an update of its long-term strategic plan in the third quarter and has begun investing in many strategic growth areas, including mining and metals, material handling, industrial cleaning, high-voltage electrical and shale energy development opportunities. We're targeting a consolidated average revenue growth rate of 12%-15% per year over the next 5 years. This growth will come from organic development of our existing business lines and services, leveraging our existing strong market presence and reputation, recruitment of key leadership and select acquisitions that provide a strategic and cultural fit.

The company is also investing in critical infrastructure to support our growth, such as safety, corporate development, information systems, employee training and risk management. While these investments are expected to have a negative effect on earnings in the short term, the management team believes these actions are necessary to achieve the company's strategic goals and will result in improved operating results and greater shareholder value over the long term.

In support of the strategic goals discussed above, Matrix Service Company is changing its operating segments, effective this quarter. Historically, the company has reported 2 operating segments: Construction Services and Repair and Maintenance Services. This segmentation no longer fairly represents our strategy or the diversity of the markets in which we will be providing services over the next few years.

Going forward, the company will report 4 operating segments: Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial. These new operating segments are consistent with the company's current strategic focus and organizational structure and will provide greater transparency into the business.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs