Mistras Group, Inc (MG) has reported a 74.17 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2.42 million, or $0.08 a share in the quarter, compared with $9.38 million, or $0.32 a share for the same period last year.

Revenue during the quarter dropped 7.68 percent to $170.16 million from $184.31 million in the previous year period. Gross margin for the quarter contracted 117 basis points over the previous year period to 28.20 percent. Total expenses were 97.13 percent of quarterly revenues, up from 91.10 percent for the same period last year. That has resulted in a contraction of 603 basis points in operating margin to 2.87 percent.

Operating income for the quarter was $4.88 million, compared with $16.40 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $15.36 million compared with $26.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 522 basis points in the quarter to 9.03 percent from 14.25 percent in the last year period.

Sotirios Vahaviolos, chairman and chief executive officer stated, "As mentioned in previous earnings calls we knew that the Fall season of 2016 would be a challenging market in North America, however our results were somewhat weaker than we expected, as customer workloads were less than we had forecasted. On the other hand, our International segment continued to gain market share and to benefit from a strong sales mix that enabled us to utilize our technical workforce at a higher rate."

For financial year 2017, Mistras Group, Inc projects revenue to be in the range of $670 million to $700 million. The company expects net income to be in the range of $20 million to $23 million.