Newspaper article THE JOURNAL RECORD

Strong Year May Lead Matrix Service Co. to Record Income

Newspaper article THE JOURNAL RECORD

Strong Year May Lead Matrix Service Co. to Record Income

Article excerpt

Less than one quarter into its fiscal year, Matrix Service Co. expects to approach record income levels for fiscal year 2007.

The future for Matrix Service is extremely strong given the current market dynamics in the downstream petroleum industry, President and Chief Executive Michael J. Hall said Thursday as the company released financial guidance data for the year.

Zacks Investment Research of Chicago had forecast Matrix earnings at 50 cents for fiscal 2007, which ends May 31. That compares to projected profits of 33 cents per share for fiscal 2006.

Working through the numbers, Matrix Vice President of Finance and Chief Financial Officer Les Austin illustrated how the 50-cent figure could be reached.

The Tulsa company set its annual record in fiscal 2004, when Matrix posted a profit of $9.4 million, or 54 cents per share, on 17.6 million shares outstanding. The company now has about 27 million diluted shares outstanding. At that level, the data projects Matrix could approach a fiscal 2007 profit of $13.5 million, or 50 cents per share.

Matrix will release its fiscal 2006 figures in early August. Through its first three quarters, it posted a profit of $4.3 million, or 21 cents per diluted share.

The Tulsa company suffered a net loss of $38.8 million, or $2.24 per diluted share, for fiscal 2005, even as Matrix reduced annual administrative payroll and benefit costs to improve its operating results.

At May 31, 2006, our bank debt continued to be zero and our cash on hand exceeded $4 million, Hall said. With robust growth and expansion opportunities in the Canadian oil sands and LNG (liquefied natural gas) markets, as well as continued repair and maintenance and capital projects in the Gulf Coast region, Matrix Service is poised to reach record net income levels.

In trading Thursday on the Nasdaq, Matrix stock rose 33 cents to close at $11.18. Volume totaled 286,671 shares. It fell a penny in after-hours trading, with volume of 1,386.

In issuing guidance for fiscal 2007, the Tulsa company projected revenues will fall between $480 million and $520 million. Since September, Matrix twice increased its forecast for fiscal 2006 revenue, ending with a $450 million to $475 million range. …

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