MISTRAS Provides Update on Project Phoenix - Seite 2
As summarized in the first row of the table below, the actions completed by the Company during the nine months ended September 30, 2023, are expected to yield annualized projected 2024 cost savings of approximately $12 million, of which approximately $7 million is expected to be realized in 2023, due to actions completed as of September 30, 2023 including the transformation of the Company’s Products and Systems segment announced on October 2, 2023, in addition to other ancillary initiatives.
Subsequent to September 30, 2023, and prior to the release of the Company’s third quarter 2023 financial results, the Company completed further actions that are expected to yield incremental annualized projected 2024 cost reductions of approximately $12 million including the optimization of North America administrative support functions, of which approximately $2 million is expected to be realized in the fourth quarter of 2023, as summarized in the second row of the table below.
Benefit* (amounts in millions) | Actual In-year Benefit 2023 Savings | Annualized Projected 2024 Run Rate Savings | |||
Nine months ended September 30, 2023 | $ | 7 | $ | 12 | |
Fourth Quarter 2023 | 2 | 12 | |||
Anticipated 2023 Totals | $ | 9 | $ | 24 |
* Benefit is comprised of a reduction in Cost of Revenue or SG&A, as detailed in the table below.
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These initiatives, including those previously disclosed, combine to yield a projected annualized cost savings of approximately $24 million, of which approximately $9 million is expected to be realized in fiscal 2023, with the full $24 million benefit expected to be realized in fiscal 2024. This would result in an approximate $15 million incremental benefit from Project Phoenix in 2024 as compared to 2023. The Company will be working to finalize additional opportunities in the fourth quarter of 2023, which are anticipated to provide further benefit to the figures presented above.