SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 15, 2000 MATRIX SERVICE COMPANY ------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-18716 73-1352174 - ----------------- ----------- ------------------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 10701 East Ute Street, Tulsa, Oklahoma 74116-1517 --------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (918) 838-8822 --------------
Item 7. Financial statements, Pro forma Financial Information and Exhibits. Exhibit 99.1 Form of presentation to security analysts and institutional investors. Item 9. Regulation FD Disclosure. Matrix Service Company intends to make to security analysts and institutional investors a presentation concerning the Company in substantially the form attached hereto as Exhibit 99.1 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATRIX SERVICE COMPANY Dated: October 15, 2000 By: /s/ Michael J. Hall --------------------------------- Michael J. Hall Vice President - Finance and Chief Financial Officer EXHIBIT INDEX EXHIBIT NO. - ----------- 99.1 Form of presentation to security analysts and institutional investors. -2-
Exhibit 99.1 MATRIX SERVICE COMPANY FORWARD-LOOKING STATEMENT This presentation contains certain forward-looking statements concerning Matrix Service Company's operations, economic performance and management's best judgment as to what may occur in the future. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, many of which are beyond the control of the Company, and any one of which, or a combination of which, could materially affect the results of the Company's operations. Such forward-looking statements are subject to a number of risks and uncertainties as identified in the Company's first quarter 2001 10-Q and in the Annual Report (10-K) for the year ended May 31, 2000.
COMPANY TIMELINE . April 1984 Founded in Tulsa, Oklahoma . September 1990 Initial Public Offering . October 1990 Acquired Midwest Industrial Contractors - Tulsa, Oklahoma . June 1991 Acquired San Luis Tank - Paso Robles, California . December 1992 Acquired Colt Construction Co. - Bellingham, Washington . June 1993 Acquired Heath Engineering Co. Ltd - Sarnia, Ontario, Canada . March 1994 Acquired Brown Steel Contractors - Newnan, Georgia . June 1997 Acquired General Services Corporation - Newark, Delaware . December 1997 Matrix Agrees to Merge with ITEQ, Inc. . January 1998 Merger Agreement with ITEQ, Inc. Terminated . May 1998 Midwest Industrial Contractors, Inc. Closed Down . March 1999 Bradley Vetal Named President & Chief Executive Officer . August 1999 Brown Steel Contractors Sold to Caldwell Tanks, Inc. . February 2000 Matrix Closes South American International Operations . April 2000 San Luis Tank Closed Down
OPERATING SEGMENTS PRODUCTS & SERVICES Aboveground Storage Tank (AST) Services . Tank Construction . Tank Repair & Maintenance . Fabrication . Products Allentech Environmental Protection Services (EPS) Plant Services . Plant Maintenance . Refinery/Plant Turnarounds . Plant - Small Capital Projects Construction Services . Design - Build Projects . Turnkey Construction Projects . Capital Projects up to $30 Million
MAP There is depicted on this page of the presentation a map of the 48 contiguous states with bullets identifying on the map the location of company operating facilities in Baypoint, California; Anaheim, California; Tulsa, Oklahoma; Houston, Texas; Temperance, Michigan; Newnan, Georgia; Bethlehem, Pennsylvania; Bristol, Pennsylvania; Newark, Delaware; and Sarnia, Ontario, Canada. The map also indicates the corporate headquarters is located in Tulsa, Oklahoma.
EXITED SEGMENTS . Municipal Water Services Brown Steel Contractors, Inc. San Luis Tank Piping Construction Company, Inc. West Coast Industrial Coatings, Inc. . Fluid Catalytic Cracking Units (FCCU) Services Midwest Industrial Contractors, Inc.
CUSTOMER BASE . Major Integrated Oil Companies . Independent Refineries and Marketers . Marketing and Pipeline Terminals . Petrochemical Companies . Manufacturing Plants and Facilities . Power . Pulp and Paper . Agricultural/Fertilizer Industries . Select, Non-Petroleum Industry for Construction Projects and Plant Services
ALLIANCES Currently we have an alliance, of some degree, with each of the following companies: . Amoco/British Petroleum . Koch . Arco . Marathon-Ashland . Chevron . Sun . Colonial Pipeline . Shell-Texaco These alliances allow us to: Reduce financial risk Maintain base work load Improve profitability
RESTRUCTURED PETROLEUM INDUSTRY . Consolidation of Downstream Facilities . Major Personnel Reduction through Staff Cutbacks, Early Retirement, and Attrition . Reduction in Number of Plant Contractors . Alliances . Modification & Repair Work Being Outsourced . Outsourcing Day-to-Day In-Plant Maintenance through Multi-Year Contracts . Demand for Suppliers to have Strong Safety Program with Drug Free, Safety Certified Employees . Increased Demand for Storage Capacity
COMPETITIVE ADVANTAGES . Broad Geographic, Operational & Fabrication Base . Commitment to Safety with Established Training Programs & Safety Professionals in all Locations . Professional Engineering & Quality Assurance Personnel Augmenting Reduction in Staff of Customer Base . Company Wide Drug/Alcohol Testing Programs . Full-Service Provider . Reputation and Repeat Business . Strong Financial Condition
COMPETITION . Tank Repair/Maintenance and Products National/International Companies (Chicago Bridge & Iron/Pitt-Des Moines, Inc.) Small Local or Regional Companies (Tanco, Tarsco, HMT, Consolidated) . Tank Construction National/International Companies (Chicago Bridge & Iron/Pitt-Des Moines, Inc.) Small Local or Regional Companies (Pasadena, Tanco, Fisher) . Refinery Maintenance (Brown & Root, Fluor, Jacobs Engineering, Timec) . Specialty Construction (Fluor, Foster Wheeler, Brown & Root, Bechtel, Chicago Bridge & Iron and Smaller Regional Providers)
OBJECTIVES AND STRATEGIES Long-Term Objectives - -------------------- . Grow Matrix to a $400 Million Company within 4 to 5 Years . Achieve a Pre-Tax Profit Margin of 7% Strategies - ---------- . Maintain Emphasis on Margins . Implement Strategic Growth Plans for Each Segment Expand Plant Services Geographically Increase Market Share for Construction Services Increase Market Share for Tank Construction Growth with the Market for Tank Repair & Maintenance Focus Construction Services on Capital Spending of Core Client Base Aggressively Pursue Opportunities in Energy Sector . Pursue Strategic Acquisitions Which Complement Core Businesses . Train and Recruit Personnel to Facilitate Internal Growth . Continue Process/Procedure Standardization and Cost Reduction . Evaluate All Strategic Alternatives to Enhance Shareholder Value
OPERATING RESULTS ($ in 000's except per share data) Year Ended May 31, 2000 - ---------------------------------------------------------------------------- AST Construction Plant Services Services Services - ---------------------------------------------------------------------------- Gross revenues $131,900 $ 9,300 $ 34,300 Less Inter-segment revenues (100) -0- -0- Consolidated revenues 131,800 9,300 34,300 Gross profit 17,400 (500) 3,200 Operating income (loss) 8,000 (1,800) 1,300 Pre-tax income (loss) 8,000 (1,500) 1,300 Net income 7,400 (1,500) 1,300 - ---------------------------------------------------------------------------- Total Exited (1) Total Operations Consolidated - ---------------------------------------------------------------------------- Gross revenues $175,500 $ 19,100 $194,600 Less Inter-segment revenues (100) (700) (800) Consolidated revenues 175,400 18,400 193,800 Gross profit 20,100 400 20,500 Operating income (loss) 7,500 (700) 6,800 Pre-tax income (loss) 7,800 (600) 7,200 Net income 7,200 (600) 6,600 EPS Fully Diluted (Tax Effected at 0.5 38%) ($ in 000's except per share data) Year Ended May 31, 1999 - ---------------------------------------------------------------------------- AST Construction Plant Services Services Services - ---------------------------------------------------------------------------- Gross revenues $117,600 $ 23,300 $ 29,900 Less Inter-segment revenues (5,000) (400) -0- Consolidated revenues 112,600 22,900 29,900 Gross profit 12,900 (200) 3,800 Operating income (loss) 3,900 (1,500) 1,800 Pre-tax income (loss) 3,400 (1,600) 1,700 Net income 3,400 (1,600) 1,700 - ---------------------------------------------------------------------------- Total Exited (1) Total Operations Consolidated - ---------------------------------------------------------------------------- Gross revenues $170,800 $ 46,500 $217,300 Less Inter-segment revenues (5,400) (900) (6,300) Consolidated revenues 165,400 45,600 211,000 Gross profit 16,500 (2,500) 14,000 Operating income (loss) 4,200 (15,700) (11,500) Pre-tax income (loss) 3,500 (16,100) (12,600) Net income 3,500 (16,100) (12,600) EPS Fully Diluted (Tax Effected at (0.83) 38%) (1) Exited Operations include Municipal Water Services and Fluid Catalytic Cracking Units (FCCU)
BALANCE SHEET May 31, 2000 ASSETS (000's) LIABILITIES & EQUITY (000's) - ----------------------------------------------------------------------------------- Total current assets $42,777 Current liabilities $23,403 Property, plant & equipment 41,498 Long-term debt -- Less accumulated depreciation 20,211 Total stockholders' equity 54,903 ------- ------- Net 21,287 Non-compete agreements and 11,660 goodwill Other assets 2,582 ------- Total assets $78,306 Total liabilities and $78,306 ======= stockholders' equity =======
FREE CASH FLOW - ---------------------------------------------------- Twelve Months Ended May 31, ($000's) 2000 1999 - ---------------------------------------------------- Net income $ 6,616 $(12,612) Tax expense 580 - Interest expense - net 291 678 Depreciation 3,410 4,047 Amortization 484 670 Non-cash writeoff of restructuring, impairment and abandonment costs - 6,344 ------- -------- EBITDA $11,381 $ (873) Capital spending (6,316) (5,379) ------- --------
FIRST QUARTER RESULTS ($ in 000's except per share data) Three Months Ended August 31, 2000 - ---------------------------------------------------------------------------- AST Construction Plant Services Services Services - ---------------------------------------------------------------------------- Gross revenues $31,400 $ 3,700 $ 3,500 Less Inter-segment revenues (700) -0- -0- Consolidated revenues 30,700 3,700 3,500 Gross profit 3,900 100 -0- Operating income (loss) 1,000 (300) (500) Pre-tax income (loss) 1,000 (400) (500) Net income 700 (300) (300) - ---------------------------------------------------------------------------- Total Exited (1) Total Operations Consolidated - ---------------------------------------------------------------------------- Gross revenues $38,600 -0- $38,600 Less Inter-segment revenues (700) -0- (700) Consolidated revenues 37,900 -0- 37,900 Gross profit 4,000 (200) 3,800 Operating income (loss) 200 (100) 100 Pre-tax income (loss) 100 (100) -0- Net income 100 (100) -0- EPS Fully Diluted (Tax Effected at 0 38%) ($ in 000's except per share data) Three Months Ended August 31, 1999 - ---------------------------------------------------------------------------- AST Construction Plant Services Services Services - ---------------------------------------------------------------------------- Gross revenues $26,500 $ 1,500 $ 8,900 Less Inter-segment revenues (100) -0- -0- Consolidated revenues 26,400 1,500 8,900 Gross profit 4,500 (100) 900 Operating income (loss) 2,300 (500) 400 Pre-tax income (loss) 2,200 (500) 400 Net income 2,200 (500) 400 - ---------------------------------------------------------------------------- Total Exited (1) Total Operations Consolidated - ---------------------------------------------------------------------------- Gross revenues $36,900 $10,900 $47,800 Less Inter-segment revenues (100) (200) (300) Consolidated revenues 36,800 10,700 47,500 Gross profit 5,300 500 5,800 Operating income (loss) 2,200 (100) 2,100 Pre-tax income (loss) 2,100 (100) 2,000 Net income 2,100 (100) 2,000 EPS Fully Diluted (Tax Effected at 0.14 38%) (1) Exited Operations include Municipal Water Services and Fluid Catalytic Cracking Units (FCCU)
SHARE INFORMATION Common Stock Outstanding (5/31/1998) - 9,600,232 Shares Common Stock Outstanding (10/9/2000) - 8,618,766 Shares Shares Repurchase Program - ------------------------- Shares Average Repurchase Price Date d - --------------------- ------------ --------- August, 1998 142,000 $ 6.93 March, 1999 397,000 $ 3.55 May, 1999 165,200 $ 3.88 November, 1999 88,000 $ 4.16 March, 2000 200,000 $ 4.94 June, 2000 50,000 $ 4.94 August, 2000 58,000 $ 4.75 ------------ Total 1,100,200 Average Price $4.46 Shares and Options Held by Senior Management and Directors (12 individuals) - --------------------------------------------------------------------------- October 1, 2000 -------------------------------- Shares Options -------------- ----------- Brad Vetal 26,818 205,000 Michael J. Hall 35,000 100,000 Others 57,695 303,400 -------------- ----------- Total 119,513 608,400