Montrose Environmental Q4 Loss Narrows, Sees Growth In FY24; Buys Two Dot Consulting

(RTTNews) - Montrose Environmental Group, Inc. (MEG) Thursday reported that its fourth-quarter net loss was $1.4 million, or $0.18 per share, narrower than last year's net loss of $10.8 million or $0.50 per share.

Adjusted net income was $10.6 million or $0.27 per share, compared to $9.0 million or $0.25 per share a year ago.

Total revenue in the fourth quarter was $165.7 million, an increase of 18.8% from $139.5 million in the prior year quarter.

Excluding revenue from discontinued services, revenue was $162.8 million, an increase of 20.2% from prior year's $135.4 million.

Analysts on average expected the company to report revenues of $160.46 million, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Looking ahead for fiscal 2024, the company projects revenue to be in the range of $675 million to $725 million, while analysts expect $666.87 million. The midpoint of the range incorporate an expectation of low double digit organic revenue growth.

Consolidated adjusted EBITDA is expected to be in the range of $90 million to $95 million.

In fiscal 2023, total revenue was $624.2 million and consolidated adjusted EBITDA was $78.6 million.

Separately, Montrose Environmental announced the acquisition of Two Dot Consulting, LLC, an environmental consultancy, for undisclosed financial terms.

Arvada, Colorado -based Two Dot specializes in regulatory services to the oil and gas, and renewables sectors in the Rocky Mountain and adjacent regions.

With the purchase, Two Dot's senior leadership team, including founder and CEO Todd Spivey, will join Montrose's Consulting and Engineering division.

Vijay Manthripragada, President and Chief Executive Officer of Montrose, said, "Their extensive expertise in the environmental sector, particularly in navigating complex regulations in oil and gas, renewable energy and energy development, will enhance our service to clients in this region. Their culture and mission are also closely aligned with ours."

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