Tulsa-based Matrix Service Co. posts net loss for first fiscal

Journal Record, The (Oklahoma City), Oct 8, 2004 by Journal Record staff

Matrix Service Co. on Thursday reported a net loss of $892,000, or 5 cents per share, for the first fiscal quarter ended Aug. 31.

The Tulsa-based industrial services company had net income of $3.9 million, or 24 cents per share, for the first quarter of the previous fiscal year.

Revenues for the quarter totaled $84.9 million, down from $158.8 million a year earlier.

Revenues from the repair and maintenance segment increased 14.9 percent to $40.6 million from $35.4 million a year earlier.

Matrix experienced softness in the construction services segment as two large power projects executed last year were not replaced. Revenues for the construction services segment fell 64.1 percent to $44.3 million from $123.4 million in the first quarter of the previous fiscal year.

The softness experienced in the first quarter was more severe than anticipated, as our client base remained reluctant to take equipment out of service due to continued strong demand for product and storage capacity, said Brad Vetal, president and CEO.

Matrix Service has retained a financial advisor to assist in refinancing a $20 million term loan that matures on Aug. 31. The company anticipates having replacement financing in place by Nov. 30.

Matrix Service Co. provides general industrial construction and repair and maintenance services principally to the petroleum, petrochemical, power, bulk storage terminal, pipeline and industrial gas industries.