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Limbach Holdings, Inc. Announces Third Quarter 2024 Results

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Limbach Holdings (LMB) reported strong Q3 2024 financial results with net income of $7.5 million, or $0.62 per diluted share. Total revenue increased 4.8% to $133.9 million, driven by a 41.3% growth in Owner Direct Relationships (ODR) revenue to $93.0 million. The company achieved record quarterly Adjusted EBITDA of $17.3 million, up 27.2% year-over-year. Gross profit rose 15.6% to $36.1 million, with ODR accounting for 82.1% of total gross profit. Based on strong performance, Limbach raised its 2024 Adjusted EBITDA guidance to $60-63 million and updated revenue guidance to $520-540 million.

Limbach Holdings (LMB) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un reddito netto di 7,5 milioni di dollari, pari a 0,62 dollari per azione diluita. I ricavi totali sono aumentati del 4,8%, raggiungendo 133,9 milioni di dollari, sostenuti da una crescita del 41,3% nei ricavi da Rapporti Diretti con il Proprietario (ODR), che hanno raggiunto i 93,0 milioni di dollari. L'azienda ha ottenuto un record trimestrale di EBITDA Rettificato di 17,3 milioni di dollari, in aumento del 27,2% rispetto all'anno precedente. Il profitto lordo è aumentato del 15,6%, raggiungendo 36,1 milioni di dollari, con ODR che rappresenta l'82,1% del profitto lordo totale. Sulla base delle ottime performance, Limbach ha alzato le stime per l'EBITDA rettificato del 2024 a 60-63 milioni di dollari, aggiornando anche le previsioni sui ricavi a 520-540 milioni di dollari.

Limbach Holdings (LMB) informó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto de 7,5 millones de dólares, o 0,62 dólares por acción diluida. Los ingresos totales aumentaron un 4,8% a 133,9 millones de dólares, impulsados por un crecimiento del 41,3% en los ingresos por Relaciones Directas con el Propietario (ODR) que alcanzaron los 93,0 millones de dólares. La compañía logró un récord trimestral de EBITDA Ajustado de 17,3 millones de dólares, un aumento del 27,2% interanual. El beneficio bruto aumentó un 15,6% a 36,1 millones de dólares, con ODR representando el 82,1% del beneficio bruto total. Basado en un rendimiento sólido, Limbach elevó su guía de EBITDA ajustado para 2024 a 60-63 millones de dólares y actualizó su guía de ingresos a 520-540 millones de dólares.

Limbach Holdings (LMB)는 2024년 3분기 강력한 재무 결과를 보고했으며, 순이익은 750만 달러, 희석 주당 0.62 달러입니다. 총 수익은 4.8% 증가하여 1억 3천390만 달러에 달했고, 소유자 직접 관계(ODR) 수익이 41.3% 증가하여 9천300만 달러에 달했습니다. 이 회사는 기록적인 분기 조정 EBITDA 1천730만 달러를 달성했으며, 이는 전년 대비 27.2% 증가한 수치입니다. 총 이익은 15.6% 증가하여 3천610만 달러에 이르렀으며, ODR은 총 총 이익의 82.1%를 차지했습니다. 강력한 실적을 바탕으로 Limbach는 2024년 조정 EBITDA 가이드를 6천만에서 6천3백만 달러로 상향 조정했으며, 수익 가이드를 5억 2천만에서 5억 4천만 달러로 업데이트했습니다.

Limbach Holdings (LMB) a annoncé de solides résultats financiers pour le troisième trimestre de 2024, avec un revenu net de 7,5 millions de dollars, soit 0,62 dollar par action diluée. Les revenus totaux ont augmenté de 4,8 %, atteignant 133,9 millions de dollars, grâce à une croissance de 41,3 % des revenus des Relations Directes avec le Propriétaire (ODR) qui ont atteint 93,0 millions de dollars. L'entreprise a atteint un record trimestriel de l'EBITDA Ajusté de 17,3 millions de dollars, en hausse de 27,2 % d'une année sur l'autre. Le bénéfice brut a augmenté de 15,6 % pour atteindre 36,1 millions de dollars, ODR représentant 82,1 % du bénéfice brut total. Sur la base de cette performance solide, Limbach a relevé ses prévisions d'EBITDA ajusté pour 2024 à 60-63 millions de dollars et a mis à jour ses prévisions de revenus à 520-540 millions de dollars.

Limbach Holdings (LMB) hat starke Finanzzahlen für das dritte Quartal 2024 gemeldet, mit einem Nettogewinn von 7,5 Millionen US-Dollar, oder 0,62 US-Dollar pro verwässertem Anteil. Der Gesamtumsatz stieg um 4,8% auf 133,9 Millionen US-Dollar, angetrieben durch ein Wachstum von 41,3% im Umsatz aus Direkten Eigentümerbeziehungen (ODR) auf 93,0 Millionen US-Dollar. Das Unternehmen erzielte ein Rekord-Quartals angepasstes EBITDA von 17,3 Millionen US-Dollar, was einem Anstieg von 27,2% im Vergleich zum Vorjahr entspricht. Der Bruttogewinn stieg um 15,6% auf 36,1 Millionen US-Dollar, wobei ODR 82,1% des gesamten Bruttogewinns ausmachte. Aufgrund der starken Leistung hat Limbach seine Prognose für das angepasste EBITDA 2024 auf 60-63 Millionen US-Dollar angehoben und die Umsatzprognose auf 520-540 Millionen US-Dollar aktualisiert.

Positive
  • Record quarterly Adjusted EBITDA of $17.3 million, up 27.2% YoY
  • ODR revenue increased 41.3% to $93.0 million
  • Total gross profit margin improved from 24.5% to 27.0%
  • Net income increased to $7.5 million from $7.2 million YoY
  • Raised 2024 Adjusted EBITDA guidance to $60-63 million
Negative
  • Net cash from operations decreased to $4.9 million from $17.2 million YoY
  • SG&A expenses increased to 17.7% of revenue from 16.4%
  • GCR revenue decreased by 33.9%
  • GCR gross margins declined to 15.8% from 19.3%

Insights

The Q3 results demonstrate strong execution of Limbach's strategic transformation. Key highlights include a 41.3% growth in high-margin ODR revenue to $93.0 million, representing 69.4% of total revenue. The gross margin expansion to 27.0% from 24.5% reflects successful pivot towards more profitable business mix. The raised FY2024 Adjusted EBITDA guidance of $60-63 million (up from $55-58 million) signals management's confidence in sustaining momentum. Strong balance sheet with $51.2 million cash and 1.57x current ratio provides flexibility for strategic acquisitions. The successful integration of recent acquisitions and focus on data center opportunities position the company well for continued growth.

Raising 2024 Adjusted EBITDA Guidance after Delivering Q3 Net Income of $7.5 million and Record Quarterly Adjusted EBITDA of $17.3 million

WARRENDALE, Pa.--(BUSINESS WIRE)-- Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended September 30, 2024.

2024 Third Quarter Financial Overview Compared to 2023 Third Quarter

  • Owner Direct Relationships (“ODR”) revenue increased 41.3%, or $27.2 million, to $93.0 million accounting for 69.4% of total revenue.
  • Total revenue was $133.9 million, an increase of 4.8% from $127.8 million.
  • Total gross profit was $36.1 million, an increase of 15.6% from $31.2 million.
  • ODR gross profit accounted for $29.6 million, or 82.1%, of total gross profit.
  • Net income of $7.5 million, or $0.62 per diluted share, compared to net income of $7.2 million, or $0.61 per diluted share.
  • Adjusted EBITDA of $17.3 million, up 27.2% from $13.6 million.
  • Net cash provided by operating activities of $4.9 million compared to $17.2 million.

Management Comments

“In the third quarter, we continued to execute the three pillars of our strategy with each pillar contributing to our EBITDA growth and gross margin expansion,” said Michael McCann, President and Chief Executive Officer of Limbach Holdings. “Our results are a direct outcome of executing our plan to shift our business to working directly for building owners on existing facilities, evolving our service offerings and scaling through acquisitions.

“We are seeing durable customer demand for our value-added solutions and achieving organic growth by focusing on deeper penetration with existing customers. Demand in all verticals has been strong, and we believe the long-term growth potential of data centers is set to play an increasingly important role for demand.

“Our recent acquisition of Kent Island Mechanical increased market share within the Greater Washington, D.C. metro region. We immediately began integrating Kent Island on to the Limbach platform to expand our capabilities, gain efficiencies and add new customers to our existing ODR business. We’re pleased with the initial progress and anticipate making additional acquisitions at a pace of about two to three per year from our strong pipeline of potential targets.

“We are quickly approaching our ODR and GCR target revenue mix of 65% to 70% ODR for 2024, and in 2025 we expect to see growth in our top line, total consolidated revenue.”

The following are results for the three months ended September 30, 2024 compared to the three months ended September 30, 2023:

  • Total revenue was $133.9 million, an increase of 4.8% from $127.8 million. ODR segment revenue of $93.0 million increased by $27.2 million, or 41.3%, while GCR revenue decreased by $21.0 million, or 33.9%. The increase in period-over-period ODR segment revenue was primarily due to the Company's continued focus on accelerating the growth of its ODR business and as a result of the Industrial Air transaction. Industrial Air was not an acquired entity for the three months ended September 30, 2023. The decrease in period-over-period GCR segment revenue was primarily due to the Company’s continued focus on the execution of its mix-shift strategy to the ODR segment.
  • Total gross profit was $36.1 million, compared to $31.2 million. ODR gross profit increased $10.4 million, or 53.8%, due to the combination of an increase in revenue and higher segment margins of 31.9% versus 29.3% driven by contract mix. GCR gross profit decreased $5.5 million, or 46.0%, primarily due to lower revenue and lower margins of 15.8% compared to 19.3% in the prior period. The total gross profit percentage increased from 24.5% to 27.0%, mainly driven by the mix of higher margin ODR segment work, the Company continuing to being more selective when pursuing GCR work, and the Industrial Air transaction.
  • Selling, general and administrative (“SG&A”) expenses increased by approximately $2.8 million, to $23.7 million, compared to $21.0 million. The increase in SG&A expense was primarily due to $1.0 million of SG&A expenses incurred within the Industrial Air entity that was not an acquired entity of the Company during the three months ended September 30, 2023, a $1.1 million increase in payroll related expenses, a $0.5 million increase in stock-based compensation expenses and a $0.4 million increase in professional services fees. As a percent of revenue, SG&A expenses were 17.7%, up from 16.4% in the prior period.
  • Interest expense was relatively flat at $0.5 million during the current quarter compared to $0.4 million.
  • Interest income was $0.6 million during the current quarter compared to $0.4 million. This increase was due to the Company's timing and amounts of investments in overnight repurchase agreements, U.S. Treasury Bills, and money market funds period-over-period.
  • Net income was $7.5 million compared to $7.2 million, an increase of 4.1%. Diluted earnings per share was $0.62 as compared to $0.61 in the prior period. Adjusted EBITDA was $17.3 million compared to $13.6 million in the prior period, an increase of 27.2%.
  • Net cash provided by operating activities of $4.9 million compared to $17.2 million in the prior period primarily due to changes in working capital.

Balance Sheet

At September 30, 2024, cash and cash equivalents were $51.2 million. Current assets were $217.1 million and current liabilities were $138.2 million at September 30, 2024, representing a current ratio of 1.57x compared to 1.50x at December 31, 2023. Working capital was $78.9 million at September 30, 2024, an increase of $7.1 million from December 31, 2023. At September 30, 2024, we had $10.0 million in borrowings against our revolving credit facility and $4.3 million for standby letters of credit.

2024 Guidance

We are updating our guidance for FY 2024 as follows:

 

Current

 

Previous

Revenue

$520 million - $540 million

 

$515 million - $535 million

Adjusted EBITDA

$60 million - $63 million

 

$55 million - $58 million

With respect to projected 2024 Adjusted EBITDA guidance and Adjusted EBITDA Margin, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items, which are excluded from Adjusted EBITDA. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results.

Conference Call Details

Date:

Wednesday, November 6, 2024

Time:

9:00 a.m. Eastern Time

Participant Dial-In Numbers:

Domestic callers:

(877) 407-6176

International callers:

+1 (201) 689-8451

Access by Webcast

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Limbach’s website at www.limbachinc.com or by clicking on the conference call link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=O8Y8RPcV. An audio replay of the call will be archived on Limbach’s website for 365 days.

About Limbach

Limbach is a building systems solution firm that partners with building owners and facilities managers who have mission critical mechanical (heating, ventilation and air conditioning), electrical and plumbing infrastructure. We strive to be an indispensable partner to our customers by providing services that are essential to the operation of their businesses. We work with building owners primarily in six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment. We have more than 1,300 team members in 19 offices across the eastern United States. Our team members uniquely combine engineering expertise with field installation skills to provide custom solutions that leverage our full life-cycle capabilities, which allows us to address both the operational and capital projects needs of our customers.

Additional Information

Investors and others should note that Limbach announces material financial information to its investors using its investor relations website, U.S. Securities and Exchange Commission filings, press releases, public conference calls/videos, and webcasts. Limbach uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s services and other Company information. It is possible that the information that Limbach posts on social media could be deemed to be material information. Therefore, Limbach encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Limbach’s investor relations website.

Forward-Looking Statements

We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, Adjusted EBITDA, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, and in particular statements regarding the impact of the COVID-19 pandemic on the construction industry in future periods, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of Limbach to successfully remedy the issues that have led to write-downs in various business units. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target,” “goal,” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties, which may cause them to turn out to be wrong. Some of these risks and uncertainties may in the future be amplified by the COVID-19 outbreak and there may be additional risks that we consider immaterial or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

(in thousands, except share and per share data)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

$

133,920

 

 

$

127,768

 

 

$

375,131

 

 

$

373,659

 

Cost of revenue

 

 

97,806

 

 

 

96,524

 

 

 

274,421

 

 

 

287,675

 

Gross profit

 

 

36,114

 

 

 

31,244

 

 

 

100,710

 

 

 

85,984

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

23,748

 

 

 

20,967

 

 

 

69,800

 

 

 

62,433

 

Change in fair value of contingent consideration

 

 

610

 

 

 

161

 

 

 

2,344

 

 

 

464

 

Amortization of intangibles

 

 

868

 

 

 

288

 

 

 

2,956

 

 

 

1,054

 

Total operating expenses

 

 

25,226

 

 

 

21,416

 

 

 

75,100

 

 

 

63,951

 

Operating income

 

 

10,888

 

 

 

9,828

 

 

 

25,610

 

 

 

22,033

 

Other (expenses) income:

 

 

 

 

 

 

 

 

Interest expense

 

 

(468

)

 

 

(437

)

 

 

(1,375

)

 

 

(1,615

)

Interest income

 

 

626

 

 

 

377

 

 

 

1,734

 

 

 

624

 

Gain on disposition of property and equipment

 

 

99

 

 

 

68

 

 

 

656

 

 

 

28

 

Loss on early debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

(311

)

(Loss) gain on change in fair value of interest rate swap

 

 

(267

)

 

 

116

 

 

 

(130

)

 

 

153

 

Total other (expenses) income

 

 

(10

)

 

 

124

 

 

 

885

 

 

 

(1,121

)

Income before income taxes

 

 

10,878

 

 

 

9,952

 

 

 

26,495

 

 

 

20,912

 

Income tax provision

 

 

3,394

 

 

 

2,760

 

 

 

5,462

 

 

 

5,407

 

Net income

 

$

7,484

 

 

$

7,192

 

 

$

21,033

 

 

$

15,505

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (“EPS”)

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

$

0.66

 

 

$

1.87

 

 

$

1.45

 

Diluted

 

$

0.62

 

 

$

0.61

 

 

$

1.75

 

 

$

1.33

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

11,272,798

 

 

 

10,962,622

 

 

 

11,233,847

 

 

 

10,695,973

 

Diluted

 

 

12,027,021

 

 

 

11,789,137

 

 

 

11,998,750

 

 

 

11,671,819

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Balance Sheets (Unaudited)

 

(in thousands, except share and per share data)

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

51,163

 

 

$

59,833

 

Restricted cash

 

65

 

 

 

65

 

Accounts receivable (net of allowance for credit losses of $425 and $292 as of September 30, 2024 and December 31, 2023, respectively)

 

101,014

 

 

 

97,755

 

Contract assets

 

56,937

 

 

 

51,690

 

Other current assets

 

7,965

 

 

 

7,657

 

Total current assets

 

217,144

 

 

 

217,000

 

 

 

 

 

Property and equipment, net

 

25,088

 

 

 

20,830

 

Intangible assets, net

 

32,830

 

 

 

24,999

 

Goodwill

 

21,246

 

 

 

16,374

 

Operating lease right-of-use assets

 

22,312

 

 

 

19,727

 

Deferred tax asset

 

5,618

 

 

 

5,179

 

Other assets

 

179

 

 

 

330

 

Total assets

$

324,417

 

 

$

304,439

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

2,626

 

 

$

2,680

 

Current operating lease liabilities

 

3,964

 

 

 

3,627

 

Accounts payable, including retainage

 

51,776

 

 

 

65,268

 

Contract liabilities

 

46,997

 

 

 

42,160

 

Accrued income taxes

 

1,758

 

 

 

446

 

Accrued expenses and other current liabilities

 

31,084

 

 

 

30,967

 

Total current liabilities

 

138,205

 

 

 

145,148

 

Long-term debt

 

20,497

 

 

 

19,631

 

Long-term operating lease liabilities

 

18,569

 

 

 

16,037

 

Other long-term liabilities

 

4,947

 

 

 

2,708

 

Total liabilities

 

182,218

 

 

 

183,524

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 11,452,753 and 11,183,076, respectively, and 11,273,101 and 11,003,424 outstanding, respectively

 

1

 

 

 

1

 

Additional paid-in capital

 

92,779

 

 

 

92,528

 

Treasury stock, at cost (179,652 shares at both period ends)

 

(2,000

)

 

 

(2,000

)

Retained earnings

 

51,419

 

 

 

30,386

 

Total stockholders’ equity

 

142,199

 

 

 

120,915

 

Total liabilities and stockholders’ equity

$

324,417

 

 

$

304,439

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

Nine Months Ended

September 30,

(in thousands)

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net income

$

21,033

 

 

$

15,505

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

Depreciation and amortization

 

8,261

 

 

 

5,751

 

Provision for credit losses

 

159

 

 

 

186

 

Stock-based compensation expense

 

4,323

 

 

 

3,374

 

Noncash operating lease expense

 

3,092

 

 

 

2,843

 

Amortization of debt issuance costs

 

32

 

 

 

69

 

Deferred income tax provision

 

(439

)

 

 

(1

)

Gain on sale of property and equipment

 

(656

)

 

 

(28

)

Loss on change in fair value of contingent consideration

 

2,344

 

 

 

464

 

Loss on early debt extinguishment

 

 

 

 

311

 

Gain on change in fair value of interest rate swap

 

130

 

 

 

(153

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

4,283

 

 

 

21,896

 

Contract assets

 

(1,115

)

 

 

14,014

 

Other current assets

 

(395

)

 

 

(1,459

)

Accounts payable, including retainage

 

(18,418

)

 

 

(18,703

)

Prepaid income taxes

 

 

 

 

95

 

Accrued taxes payable

 

1,311

 

 

 

(1,386

)

Contract liabilities

 

10

 

 

 

2,312

 

Operating lease liabilities

 

(2,895

)

 

 

(2,803

)

Accrued expenses and other current liabilities

 

(1,446

)

 

 

1,997

 

Payment of contingent consideration liability in excess of acquisition-date fair value

 

(2,175

)

 

 

(1,224

)

Other long-term liabilities

 

55

 

 

 

400

 

Net cash provided by operating activities

 

17,494

 

 

 

43,460

 

Cash flows from investing activities:

 

 

 

Kent Island Transaction, net of cash acquired

 

(12,716

)

 

 

 

ACME Transaction, net of cash acquired

 

 

 

 

(4,883

)

Proceeds from sale of property and equipment

 

1,171

 

 

 

370

 

Advances from joint ventures

 

7

 

 

 

 

Purchase of property and equipment

 

(6,187

)

 

 

(1,720

)

Net cash used in investing activities

 

(17,725

)

 

 

(6,233

)

Cash flows from financing activities:

 

 

 

Payments on A&R Wintrust Term Loans

 

 

 

 

(21,452

)

Proceeds from Wintrust Revolving Loan

 

 

 

 

10,000

 

Payment of contingent consideration liability up to acquisition-date fair value

 

(1,325

)

 

 

(1,776

)

Payments on finance leases

 

(2,296

)

 

 

(1,991

)

Payments of debt issuance costs

 

 

 

 

(50

)

Taxes paid related to net-share settlement of equity awards

 

(5,187

)

 

 

(847

)

Proceeds from contributions to Employee Stock Purchase Plan

 

369

 

 

 

313

 

Net cash used in financing activities

 

(8,439

)

 

 

(15,803

)

(Decrease) increase in cash, cash equivalents and restricted cash

 

(8,670

)

 

 

21,424

 

Cash, cash equivalents and restricted cash, beginning of period

 

59,898

 

 

 

36,114

 

Cash, cash equivalents and restricted cash, end of period

$

51,228

 

 

$

57,538

 

Supplemental disclosures of cash flow information

 

 

 

Noncash investing and financing transactions:

 

 

 

Earnout liability associated with the Kent Island Transaction

$

4,381

 

 

$

 

Earnout liability associated with the ACME Transaction

 

 

 

 

1,121

 

Right of use assets obtained in exchange for new operating lease liabilities

$

4,776

 

 

$

1,043

 

Right of use assets obtained in exchange for new finance lease liabilities

 

3,095

 

 

 

4,062

 

Right of use assets disposed or adjusted modifying operating lease liabilities

 

988

 

 

 

(643

)

Right of use assets disposed or adjusted modifying finance lease liabilities

 

 

 

 

(77

)

Interest paid

 

1,413

 

 

 

1,482

 

Cash paid for income taxes

$

4,700

 

 

$

6,718

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

 

 

Three Months Ended

September 30,

 

Increase/(Decrease)

(in thousands, except for percentages)

2024

 

2023

 

$

 

%

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

ODR

$

93,007

 

69.4

%

 

$

65,832

 

51.5

%

 

$

27,175

 

 

41.3

%

GCR

 

40,913

 

30.6

%

 

 

61,936

 

48.5

%

 

 

(21,023

)

 

(33.9

)%

Total revenue

 

133,920

 

100.0

%

 

 

127,768

 

100.0

%

 

 

6,152

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

ODR(1)

 

29,647

 

31.9

%

 

 

19,274

 

29.3

%

 

 

10,373

 

 

53.8

%

GCR(2)

 

6,467

 

15.8

%

 

 

11,970

 

19.3

%

 

 

(5,503

)

 

(46.0

)%

Total gross profit

 

36,114

 

27.0

%

 

 

31,244

 

24.5

%

 

 

4,870

 

 

15.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative(3)

 

23,748

 

17.7

%

 

 

20,967

 

16.4

%

 

 

2,781

 

 

13.3

%

Change in fair value of contingent consideration

 

610

 

0.5

%

 

 

161

 

0.1

%

 

 

449

 

 

278.9

%

Amortization of intangibles

 

868

 

0.6

%

 

 

288

 

0.2

%

 

 

580

 

 

201.4

%

Total operating income

$

10,888

 

8.1

%

 

$

9,828

 

7.7

%

 

$

1,060

 

 

10.8

%

(1)

As a percentage of ODR revenue.

(2)

As a percentage of GCR revenue.

(3)

Included within selling, general and administrative expenses was $1.6 million and $1.1 million of stock-based compensation expense for the three months ended September 30, 2024 and 2023, respectively.

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

 

 

Nine Months Ended

September 30,

 

Increase/(Decrease)

(in thousands, except for percentages)

2024

 

2023

 

$

 

%

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

ODR

$

250,017

 

66.6

%

 

$

183,330

 

49.1

%

 

$

66,687

 

 

36.4

%

GCR

 

125,114

 

33.4

%

 

 

190,329

 

50.9

%

 

 

(65,215

)

 

(34.3

)%

Total revenue

 

375,131

 

100.0

%

 

 

373,659

 

100.0

%

 

 

1,472

 

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

ODR(1)

 

77,170

 

30.9

%

 

 

52,424

 

28.6

%

 

 

24,746

 

 

47.2

%

GCR(2)

 

23,540

 

18.8

%

 

 

33,560

 

17.6

%

 

 

(10,020

)

 

(29.9

)%

Total gross profit

 

100,710

 

26.8

%

 

 

85,984

 

23.0

%

 

 

14,726

 

 

17.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative(3)

 

69,800

 

18.6

%

 

 

62,433

 

16.7

%

 

 

7,367

 

 

11.8

%

Change in fair value of contingent consideration

 

2,344

 

0.6

%

 

 

464

 

0.1

%

 

 

1,880

 

 

405.2

%

Amortization of intangibles

 

2,956

 

0.8

%

 

 

1,054

 

0.3

%

 

 

1,902

 

 

180.5

%

Total operating income

$

25,610

 

6.8

%

 

$

22,033

 

5.9

%

 

$

3,577

 

 

16.2

%

(1)

As a percentage of ODR revenue.

(2)

As a percentage of GCR revenue.

(3)

Included within selling, general and administrative expenses was $4.3 million and $3.4 million of stock-based compensation expense for the nine months ended September 30, 2024 and 2023, respectively.

Non-GAAP Financial Measures

In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measures are Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA and Adjusted EBITDA Margin. Our calculation of Adjusted EBITDA and Adjusted EBITDA Margin, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA and Adjusted EBITDA Margin cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA, the most comparable GAAP measure, is provided below.

We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options.

Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income

$

7,484

 

 

$

7,192

 

 

$

21,033

 

 

$

15,505

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

2,741

 

 

 

1,892

 

 

 

8,261

 

 

 

5,751

 

Interest expense

 

468

 

 

 

437

 

 

 

1,375

 

 

 

1,615

 

Interest income

 

(626

)

 

 

(377

)

 

 

(1,734

)

 

 

(624

)

Non-cash stock-based compensation expense

 

1,603

 

 

 

1,140

 

 

 

4,323

 

 

 

3,374

 

Loss on early debt extinguishment

 

 

 

 

 

 

 

 

 

 

311

 

Change in fair value of interest rate swap

 

267

 

 

 

(116

)

 

 

130

 

 

 

(153

)

CEO transition costs

 

 

 

 

 

 

 

 

 

 

958

 

Income tax provision

 

3,394

 

 

 

2,760

 

 

 

5,462

 

 

 

5,407

 

Acquisition and other transaction costs

 

826

 

 

 

225

 

 

 

877

 

 

 

524

 

Change in fair value of contingent consideration

 

610

 

 

 

161

 

 

 

2,344

 

 

 

464

 

Restructuring costs(1)

 

565

 

 

 

317

 

 

 

827

 

 

 

1,089

 

Adjusted EBITDA

$

17,332

 

 

$

13,631

 

 

$

42,898

 

 

$

34,221

 

 

 

 

 

 

 

 

 

Revenue

$

133,920

 

 

$

127,768

 

 

$

375,131

 

 

$

373,659

 

Adjusted EBITDA Margin

 

12.9

%

 

 

10.7

%

 

 

11.4

%

 

 

9.2

%

(1)

For the three and nine months ended September 30, 2024 and 2023, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.

 

Investor Relations

Financial Profiles, Inc.

Julie Kegley

LMB@finprofiles.com

Source: Limbach Holdings, Inc.

FAQ

What was Limbach's (LMB) revenue in Q3 2024?

Limbach reported total revenue of $133.9 million in Q3 2024, a 4.8% increase from $127.8 million in Q3 2023.

How much did Limbach's (LMB) ODR revenue grow in Q3 2024?

Limbach's ODR revenue grew by 41.3% or $27.2 million to $93.0 million in Q3 2024, accounting for 69.4% of total revenue.

What is Limbach's (LMB) updated guidance for 2024?

Limbach updated its 2024 guidance with revenue of $520-540 million and Adjusted EBITDA of $60-63 million.

What was Limbach's (LMB) earnings per share in Q3 2024?

Limbach reported diluted earnings per share of $0.62 in Q3 2024, compared to $0.61 in Q3 2023.

Limbach Holdings, Inc

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