Q2 2024 Montrose Environmental Group Inc Earnings Call Transcript
Key Points
- Montrose Environmental Group Inc (MEG) reported its highest ever revenue and adjusted EBITDA for the second quarter and first half of 2024.
- The company achieved 9% revenue growth and 10% adjusted EBITDA growth, driven by strong organic growth across most business segments.
- Successful cross-selling initiatives contributed to margin expansion in all three segments.
- Recent acquisitions, including Paragon and Spirit Environmental, are strategically additive and expected to enhance the company's footprint and service offerings.
- Montrose Environmental Group Inc (MEG) reaffirmed its full-year 2024 organic growth expectation of 10% to 12% and maintained its revenue and adjusted EBITDA guidance.
- Environmental emergency response revenue was down substantially in the second quarter compared to the previous year.
- The water treatment and renewable services segment experienced a decline, although it is expected to recover later in the year.
- Adjusted net income per share decreased in both the second quarter and first half of 2024 compared to the prior year periods, primarily due to increased interest and tax expenses.
- Cash flow from operating activities was negative year-to-date, driven by an increase in receivables related to the integration of Matrix and several large new projects.
- Despite improvements, the Matrix acquisition has not yet achieved the mid-teens EBITDA margin target, impacting overall consolidated adjusted EBITDA margins.
Good day, and welcome to the Montrose Environmental Group, Inc. Second Quarter 2024 Earnings Call. [Operator Instructions] Please note this event is being recorded. And now, I'd like to turn the conference over to Adrianne Griffin, Senior Vice President, Investor Relations and Treasury. Please go ahead.
Thank you, operator. Welcome to our second quarter 2024 earnings call. Joining me on the call are Vijay Manthripragada, our President and Chief Executive Officer; and Allan Dicks, our Chief Financial Officer. During our prepared remarks today, we will refer to our earnings presentation, which is available on the Investors section of our website. Our earnings release is also available on the website. Moving to Slide 2. I would like to remind everyone that on today's call, we will include forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ in a material way due to known and unknown risks and uncertainties that should be considered in evaluating our
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