Mistras Group, Inc. provided an update on the status of Project Phoenix, the Company?s strategic program to increase Income from Operations through reductions in corporate administrative overhead and enhancements to pricing. In February 2023, the Board of Directors announced that the Company engaged with Alix Partners to undertake an operational review designed to accelerate profitable growth by identifying meaningful margin improvement opportunities and steps to achieve sustained cost savings, referred to as Project Phoenix. In addition, as part of this initiative a new commercial function was established, to drive top-line profitable revenue growth via strategic pricing and sales enablement.

Project Phoenix identified various opportunities, which the Company subsequently vetted through a comprehensive diligence process and has completed the validation of a majority of the initial Project Phoenix opportunities. The first completed initiative was the transformation of the Company?s Products and Systems? segment announced on October 2, 2023.

The Company also implemented additional initiatives in the month of October 2023 related to streamlining its North American operations and improvements related to pricing actions. The following is a brief overview of the additional actions being implemented as a result of Project Phoenix: Strategic Pricing: The Company has developed and will be further enhancing a proactive structural pricing strategy intended to address inflationary costs experienced in its business. Reductions to Overhead: The Company?s goal is to reduce selling, general, and administrative expenses (?SG&A?) to approximately 21% of total revenues by the end of 2024, primarily through a rationalization of the overhead workforce, including a targeted 15% reduction in administrative headcount, without adversely impacting the Company?s technician base or ability to support operations and service its customers.

New Leadership: As part of the Company?s transformation plan to improve shareholder value by lowering SG&A, improving free cash flow, and accelerating growth, the Board made recent changes to senior leadership within the Company to further strengthen the organization and enhance the execution of the various initiatives comprising Project Phoenix.