Montrose Environmental Group Inc. of North Little Rock narrowed its first-quarter loss to $7.5 million from $12.9 million in the same quarter of last year.
The company said its revenue grew slightly, to $134.7 million from $133.8 million.
The firm that aims to help its business clients understand, measure and manage their environmental footprint or risk (NYSE: MEG) released its earnings late Monday.
"The strong demand for our environmental solutions continued into 2022," CEO Vijay Manthripragada said in a news release. "We have been particularly pleased by the rapid organic revenue and earnings growth in our water solutions, GHG measurement and negative carbon intensity energy service lines. The surge in our organic growth in these and other business lines helped offset an expected and material decline in CTEH COVID-19-related services."
Montrose said revenue also grew because of 2021-22 acquisitions that include Vista Analytical Laboratory Inc., Environmental Intelligence LLC, Environmental Chemistry Inc., Horizon Water and Environment LLC and Environmental Standards Inc.
Higher revenue along with fair value gain on the company's interest rate swap in 2022 and fair value adjustment charges in 2021 related to contingent earn-out obligations and the Series A-2 preferred stock were credited for the narrowed loss.
"For the full year 2022, we continue to expect to produce strong organic growth in nearly all business lines, excluding our CTEH business," Manthripragada continued. "Additionally, we are successfully integrating the highly additive team from Environmental Standards and remain optimistic about prospective and accretive acquisitions in our pipeline. We are excited by the trajectory of our business and are confident that we will continue to execute on our growth strategy to provide further value for our stakeholders."
Montrose entered Arkansas in 2020 with the purchase of privately held CTEH of North Little Rock, a scientific consulting firm specializing in emergency preparedness, response and recovery, then moved its headquarters there in 2021. Financial terms of the CTEH deal were not disclosed.