Media General (MEG) Misses Q3 EPS by $3.09, Revenues Beat

Media General (NYSE: MEG) reported Q3 EPS of ($2.99), $3.09 worse than the analyst estimate of $0.10. Revenue for the quarter came in at $84.7 million versus the consensus estimate of $78.55 million.

Third Quarter 2020 Highlights

• Total revenue of $84.7 million increased 47.0% compared to the prior year quarter
• Net loss of $30.7 million compared to a net loss of $6.7 million in the prior year quarter, primarily due to non-cash fair value adjustments and non-capitalizable IPO expenses
• Adjusted EBITDA1 of $16.7 million increased 107.3% compared to the prior year quarter
• Adjusted EBITDA margin1 improved to 19.7% compared to 14.0% in the prior year quarter

“Demand for our environmental solutions, particularly organic demand, accelerated in the third quarter and allowed us to deliver strong results and maintain momentum,” stated Vijay Manthripragada, Montrose’s Chief Executive Officer. “We recognize the significant sacrifices and efforts of our team members around the world who have helped colleagues and clients navigate multiple natural disasters and the COVID-19 pandemic. I am proud of and thankful for my entire team, who continue to deliver solid results despite all of the challenges 2020 has put forth. We believe Montrose’s performance remains resilient because of the world’s enduring focus on better environmental stewardship and because of the commitment of our employees. As we look to the balance of 2020, we expect to deliver on our upwardly revised full year 2020 outlook.”

Full Year 2020 Outlook

On the strength of resilient demand for the Company’s services through the first nine months of 2020, the Company is on track to deliver on its expectation for annual revenue growth in excess of 20% for the full year 2020. The Company is raising the low end of its previously provided full year Adjusted EBITDA1 outlook, which it now expects to be in the range of $50 million to $55 million, reflecting year-over-year growth of approximately 68% at the mid-point. The Company now expects Adjusted EBITDA margin1 to be in the range of 16.5% to 17.5% for the full year 2020, compared to a prior range of 16.0% to 17.5%. Because demand for environmental services is not driven by specific or predictable patterns in one or more fiscal quarters, the Company’s business is better assessed based on yearly results.

For earnings history and earnings-related data on Media General (MEG) click here.

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