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Montrose Records Record Revenue, Annual Loss

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Full-year and fourth-quarter revenue for Montrose Environmental Group Inc., which moved its headquarters to North Little Rock last summer, grew by 66.5% and 32.2% year-over-year, respectively, while profit was a mixed bag.

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.

While the company narrowed its loss for the year to $25.3 million from $57.9 million, it lost $1.5 million in the quarter after recording an $800,000 profit in the fourth quarter of 2020.

Montrose cited higher revenue as the main catalyst for the lower annual loss. Its 2021 revenue was $546.4 million, up from $328.2 million, and fourth quarter revenue was $143.8 million, up from $108.7 million in the same quarter the year before.

Montrose said the increase in revenue for both periods was driven by organic growth in its Assessment, Permitting and Response and Remediation and Reuse segments, a full 12 months’ of CTEH results (CTEH was acquired in 2020 and added just nine months of revenue that year), and five acquisitions. The company acquired MSE Group LLC in January, Vista Analytical Laboratory Inc. in June, Environmental Intelligence LLC in July 2021, Environmental Chemistry Inc. in October and Horizon Water and Environment LLC in November.

CEO and Director Vijay Manthripragada said in a news release, “We headed into 2021 with a lot of uncertainty both for Montrose and our industry, and it ended up being a record-breaking year for Montrose with lots of continued positive momentum into 2022. 

“In 2021, we crossed the threshold of $0.5 billion in revenue, we enjoyed the highest organic growth in the business during my tenure, we continued our strong revenue retention, we added new and notable customers and geographies that will be core to our future, we funded our accretive acquisitions almost exclusively from our operating cash flows, we added and promoted some incredible talent throughout the organization, we added to our IP portfolio, environmental data capabilities and technology partnerships, we kept our people safe, and we continued to create incredible opportunities for our teams and our business. 

“I will keep saying it because it is true; these incredible results and accomplishments belong to our teams who did all this in the midst of a pandemic. They positioned themselves and Montrose for a very bright future. I remain grateful and honored to be on this journey with them.”

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. Financial terms of the deal were not disclosed.

On Monday, Manthripragada said the company’s CTEH COVID-19 response business had slowed in the fourth quarter as expected, and he added that Montrose closed on six acquisitions last year. He also said the company believes it is “well positioned to continue performing well and creating shareholder value.”

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