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MATRIX SERVICE COMPANY Matrix Service Company Reports First Quarter Fiscal 2022 Results November 8 , 2021 TULSA , Okla . , Nov. 08 , 2021 ( GLOBE NEWSWIRE ) -- Matrix Service Company ( Nasdaq : MTRX ) , a leading contractor to the energy and industrial markets across North America , today reported financial results for its first quarter of fiscal 2022 . Key highlights : Project awards of $ 266.9 million in the quarter resulting in a book - to - bill of 1.6 , highest awards since the first quarter of fiscal 2020 • Backlog increased 21.4 % in the quarter to $ 561.4 million • Balance sheet remains strong with no debt ; new $ 100.0 million credit facility • First quarter revenue of $ 168.1 million • First quarter loss per fully diluted share of $ 0.66 ; adjusted loss per fully diluted share of $ 0.60 ( ¹ ) " In the quarter we recorded a significant increase in project awards , achieving a book to bill of 1.6 on project awards of $ 266.9 million . This quarter's awards represent the highest awards seen since the first quarter of fiscal 2020 and included diversified projects such as LNG storage , thermal vacuum chambers , renewable fuels , and electrical infrastructure . Based on the strengthening market conditions and the first quarter awards , we expect improving results in the second half of our fiscal year . This award strength represents a long - awaited and important sign of client confidence returning to our markets , and the beginning of an award cycle that we believe will strengthen as we move into the new calendar year , " said John R. Hewitt , President and CEO . " Bidding remains extremely strong across all segments with numerous opportunities in LNG and NGL facilities , midstream gas processing , hydrogen and other renewables , as well as electrical infrastructure and mining and minerals . " Earnings Summary Revenue in the first quarter of fiscal 2022 was $ 168.1 million , a decrease of $ 6.8 million compared to fourth quarter fiscal 2021 revenue of $ 174.9 million . Gross margin was ( 2.1 ) % in the first quarter of fiscal 2022. Although we have made significant reductions to our overhead cost structure , at this current revenue volume , we did not fully leverage overhead costs , which contributed to the low gross margin and earnings for all three segments in the quarter . In the Storage and Terminals Solutions segment , the Company delivered a disappointing operating performance which resulted in a gross margin of 0.6 % for the quarter . The Process and Industrial Facilities segment performance , anchored by our nested refinery operations and industrial services group , provided good direct margins . In the Utility and Power Infrastructure segment , first quarter results were impacted by an increase in the forecasted costs to complete a large capital project , which resulted in a decrease in gross profit of $ 5.9 million . The change in estimate was principally due to unexpected equipment repairs during commissioning that delayed the scheduled completion and increased the estimated costs to complete . We achieved a critical performance milestone in the second quarter of fiscal 2022 , which significantly reduced our financial exposure . While we expect that the forecasted financial outcome of the project will remain positive , it is well below our original expectations . In addition , we incurred a $ 2.1 million charge related to the collection of amounts owed on a project completed in 2019 that was tied up in litigation . The electrical infrastructure business in this segment had a good award cycle in the quarter and performed at a high level from a gross margin perspective . Some storm revenue this quarter also positively supported the margin outcome . Interest expense in the first quarter of fiscal 2022 included $ 1.5 million of accelerated amortization of deferred debt amendment fees associated with the prior credit agreement . In addition , earnings in the first quarter of fiscal 2022 included restructuring costs of $ 0.6 million . Backlog Our backlog as of September 30 , 2021 was $ 561.4 million . Project awards in the first quarter of 2021 totaled $ 266.9 million , resulting in a book - to - bill ratio of 1.6 . On a segment basis , the quarterly book - to - bill was 1.1 for Utili and Power Infrastructure , driven largely by booking in electrical infrastructure . For Process and Industrial Facilities , the book - to - bill was 2.2 led by the award of a thermal vacuum chamber project , and Storage and Terminal Solutions was 1.6 led by projects supporting LNG and renewable fuels storage . The bookings during the quarter were the highest since the first quarter of fiscal 2020. Bidding activity is strong , and while the timing of project awards can fluctuate , we expect the trend of improving backlog to continue . Financial Position At September 30 , 2021 , we had no debt and total liquidity of $ 66.8 million . Liquidity is comprised of $ 34.7 million of unrestricted cash and cash equivalents and $ 32.1 million of borrowing availability under the ABL Facility . In addition , the Company has $ 27.6 million of restricted cash , of which $ 25.0 million is restricted to support the ABL Facility and $ 2.6 million is restricted to support a purchase card program associated with a prior card administrator while we transition to a new card administrator . We further expect this liquidity to improve in the second quarter as invested first quarter working capital returns and various letters of credit will be reduced by approximately $ 20.0 million as projects are completed . ( 1 ) Non - GAAP Financial Measure