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Segment Information
 12 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information

Note 14—Segment Information

The Company completed an update of its long-term business strategy in the third quarter of fiscal 2012. This strategic update along with certain changes in our organizational structure led to a reassessment of our operating segments. As a result of these events, we have revised our reportable segments to better align with the current management of the business. Accordingly, our new segments are: Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions, and Industrial. Our previous operating segments were Construction Services and Repair and Maintenance Services.

The Electrical Infrastructure segment primarily encompasses high voltage services to investor owned utilities, including construction of new substations, upgrades of existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services. We also provide construction and maintenance services to a variety of power generation facilities, such as combined cycle plants, nuclear facilities, coal fired power stations, and renewable energy installations.

The Oil Gas & Chemical segment includes our traditional turnaround activities, plant maintenance services and construction in the downstream petroleum industry. Another key offering is industrial cleaning services, which include hydroblasting, hydroexcavating, chemical cleaning and vacuum services. We also perform work in the renewable energy, industrial and natural gas, gas processing and compression, and upstream petroleum markets.

The Storage Solutions segment includes new construction of, as well as planned and emergency maintenance services for crude and refined products aboveground storage tanks. Also included in the Storage Solutions segment is work related to specialty storage tanks including liquefied natural gas (“LNG”), liquid nitrogen/liquid oxygen (“LIN/LOX”), liquid petroleum (“LPG”) tanks and other specialty vessels including spheres. Finally, the Storage Solutions segment includes balance of plant work in storage terminals and tank farms.

The Industrial segment includes work in the mining and minerals industry, bulk material handling, thermal vacuum chambers, as well as work for clients in other industrial and manufacturing markets.

Other consists of corporate asset balances.

The Company evaluates performance and allocates resources based on operating income. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are recorded at cost; therefore, no intercompany profit or loss recognized.

 

Segment assets consist primarily of accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, property, plant and equipment and goodwill.

Results of Operations

(In thousands)

 

                                                 
    Electrical
Infrastructure		     Oil Gas &
Chemical		     Storage
Solutions		     Industrial     Other     Total  

Twelve Months Ended June 30, 2012

                                                

Gross revenues

   $ 135,086     $ 206,031     $ 380,488     $ 19,983     $ —       $ 741,588  

Less: inter-segment revenues

     —         208       2,334       —         —         2,542  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated revenues

     135,086       205,823       378,154       19,983       —         739,046  

Gross profit

     16,676       20,070       42,393       479       —         79,618  

Operating income (loss)

     7,609       8,134       17,493       (1,601 )      —         31,635  

Segment assets

     51,998       53,567       150,543       14,018       53,009       323,135  

Capital expenditures

     2,581       2,346       3,929       741       3,937       13,534  

Depreciation and amortization expense

     1,823       2,838       6,309       515       —         11,485  
             

Twelve Months Ended June 30, 2011

                                                

Gross revenues

   $ 151,065     $ 143,753     $ 299,762     $ 33,934     $ —       $ 628,514  

Less: inter-segment revenues

     7       399       1,056       —         —         1,462  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated revenues

     151,058       143,354       298,706       33,934       —         627,052  

Gross profit

     18,337       13,647       38,779       4,151       —         74,914  

Operating income

     9,111       3,105       16,612       2,072       —         30,900  

Segment assets

     46,411       42,801       131,050       19,542       66,632       306,436  

Capital expenditures

     2,511       908       4,098       9       2,890       10,416  

Depreciation and amortization expense

     1,613       2,490       6,533       431       —         11,067  
             

Twelve Months Ended June 30, 2010

                                                

Gross revenues

   $ 103,015     $ 150,344     $ 272,305     $ 27,622     $ —       $ 553,286  

Less: inter-segment revenues

     21       1,460       991       —         —         2,472  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated revenues

     102,994       148,884       271,314       27,622       —         550,814  

Gross profit

     13,289       9,121       27,806       2,706       —         52,922  

Operating income (loss)

     3,501       (849 )      6,183       (1,082 )      —         7,753  

Segment assets

     47,456       43,603       121,919       11,341       60,489       284,808  

Capital expenditures

     266       365       1,440       —         3,231       5,302  

Depreciation and amortization expense

     1,299       2,869       7,220       363       —         11,751  

Geographical information is as follows:

 

                         
    Revenues  
    Twelve Months Ended  
    June 30,
2012		     June 30,
2011		     June 30,
2010		  
    (In thousands)  

Domestic

   $ 674,496     $ 596,756     $ 518,750  

International

     64,550       30,296       32,064  
   

 

 

    

 

 

    

 

 

  
    $ 739,046     $ 627,052     $ 550,814  
   

 

 

    

 

 

    

 

 

  

 

                         
    Long-Lived Assets  
    June 30,
2012		     June 30,
2011		     June 30,
2010		  
    (In thousands)  

Domestic

   $ 85,290     $ 83,312     $ 81,424  

International

     6,132       6,693       4,517  
   

 

 

    

 

 

    

 

 

  
    $ 91,422     $ 90,005     $ 85,941  
   

 

 

    

 

 

    

 

 

  

 

Information about Significant Customers

In fiscal 2012, one customer accounted for 11.0% of our consolidated revenue and 35.1% of our Oil Gas & Chemical revenue and an additional customer accounted for 16.2% of our Oil Gas & Chemical revenue. Another customer accounted for 10.7% of our consolidated revenue and 20.9% of our Storage Solutions revenue. Three other customers accounted for 18.6%, 11.8% and 11.2% of our Electrical Infrastructure revenue, respectively. An additional four customers accounted for 25.7%, 18.1%,15.3% and 12.2% of our Industrial revenue, respectively.

In fiscal 2011, three customers accounted for 34.9%, 20.3% and 11.5% of our Electrical Infrastructure revenue, respectively. Another customer accounted for 38.4% of our Oil Gas & Chemical revenue. An additional four customers accounted for 13.2%, 13.1%, 12.3% and 11.4% of our Storage Solutions revenue, respectively. Three other customers accounted for 31.9%, 21.8% and 16.7% of our Industrial revenue, respectively. No customers accounted for greater than 10% of our consolidated revenue.

In fiscal 2010, one customer accounted for 52.8% of our Electrical Infrastructure revenue. Two other customers accounted for 30.2% and 11.1% of our Oil Gas & Chemical revenue, respectively. One additional customer accounted for 10.9% of our Storage Solutions revenue. Three other customers accounted for 29.9%, 14.4% and 12.3% of our Industrial revenue, respectively. No customers accounted for greater than 10% of our consolidated revenue.

Matrix Service Company

Quarterly Financial Data (Unaudited)

Fiscal Years Ended June 30, 2012 and June 30, 2011

 

                                 
    First
Quarter		     Second
Quarter		     Third
Quarter		     Fourth
Quarter(a)		  
    (In thousands, except per share amounts)  

Fiscal Year 2012

        

Revenues

   $ 169,321     $ 200,964     $ 183,899     $ 184,862  

Gross profit

     18,093       23,098       19,771       18,656  

Operating income

     6,610       11,200       7,415       6,410  

Net income

     3,509       7,031       4,862       1,786  

Earnings per common share:

                                

Basic

     0.13       0.27       0.19       0.07  

Diluted

     0.13       0.27       0.19       0.07  
         

Fiscal Year 2011

                                

Revenues

   $ 151,838     $ 175,252     $ 136,333     $ 163,629  

Gross profit

     15,702       19,768       18,570       20,874  

Operating income

     5,113       8,632       7,640       9,515  

Net income

     3,089       5,287       4,923       5,683  

Earnings per common share:

                                

Basic

     0.12       0.20       0.19       0.21  

Diluted

     0.12       0.20       0.18       0.21  

 

(a) Fourth quarter earnings included an income tax charge of $3.1 million. The income tax charge represents adjustments of $2.1 million for prior fiscal years and $1.0 million in fiscal 2012, of which $0.2 million related to fourth quarter activity.

The sum of earnings per share for the four quarters may not equal the total earnings per share for the year due to changes in the average number of common shares outstanding and rounding.