<PAGE>
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.
<PAGE>
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
<PAGE>
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
<PAGE>
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.
<PAGE>
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.
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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)
<PAGE>
OBJECTIVES AND STRATEGIES
Long-Term Objectives
--------------------
. Grow Matrix to a $400 Million Company within 4 to 5 Years
. Achieve a Pre-Tax Profit Margin of 7%
Strategies
----------
. Maintain Emphasis on Margins
. Implement Strategic Growth Plans for Each Segment
Expand Plant Services Geographically
Increase Market Share for Construction Services
Increase Market Share for Tank Construction
Growth with the Market for Tank Repair & Maintenance
Focus Construction Services on Capital Spending of Core Client Base
Aggressively Pursue Opportunities in Energy Sector
. Pursue Strategic Acquisitions Which Complement Core Businesses
. Train and Recruit Personnel to Facilitate Internal Growth
. Continue Process/Procedure Standardization and Cost Reduction
. Evaluate All Strategic Alternatives to Enhance Shareholder Value
<PAGE>
OPERATING RESULTS
<TABLE>
<CAPTION>
($ in 000's except per share data) Year Ended May 31, 2000
----------------------------------------------------------------------------
AST Construction Plant
Services Services Services
----------------------------------------------------------------------------
<S> <C> <C> <C>
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%)
</TABLE>
(1) Exited Operations include Municipal Water Services and Fluid Catalytic
Cracking Units (FCCU)
<PAGE>
BALANCE SHEET
<TABLE>
<CAPTION>
May 31, 2000
ASSETS (000's) LIABILITIES & EQUITY (000's)
-----------------------------------------------------------------------------------
<S> <C> <C> <C>
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 =======
</TABLE>
<PAGE>
FREE CASH FLOW
<TABLE>
<CAPTION>
----------------------------------------------------
Twelve Months Ended
May 31,
($000's) 2000 1999
----------------------------------------------------
<S> <C> <C>
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)
------- --------
</TABLE>
<PAGE>
FIRST QUARTER RESULTS
<TABLE>
<CAPTION>
($ in 000's except per share data) Three Months Ended August 31, 2000
----------------------------------------------------------------------------
AST Construction Plant
Services Services Services
----------------------------------------------------------------------------
<S> <C> <C> <C>
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%)
</TABLE>
(1) Exited Operations include Municipal Water Services and Fluid Catalytic
Cracking Units (FCCU)
<PAGE>
SHARE INFORMATION
Common Stock Outstanding (5/31/1998) - 9,600,232 Shares
Common Stock Outstanding (10/9/2000) - 8,618,766 Shares
<TABLE>
<CAPTION>
Shares Repurchase Program
-------------------------
Shares Average
Repurchase Price
Date d
--------------------- ------------ ---------
<S> <C> <C>
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
</TABLE>
