Limbach Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Results
Limbach Holdings (NASDAQ: LMB) reported record financial results for FY2024, with net income reaching $30.9 million ($2.57 per diluted share), up from $20.8 million in 2023. The company achieved record adjusted EBITDA of $63.7 million, a 36.1% increase year-over-year.
Key highlights include:
- Record full-year gross profit of $144.3 million, up 20.9%
- Owner Direct Relationships revenue increased 31.9% to $345.5 million
- Adjusted net income of $43.2 million ($3.60 per adjusted diluted share)
For 2025, Limbach projects revenue of $610-630 million and adjusted EBITDA of $78-82 million. The company completed two strategic acquisitions in 2024 and maintains a focus on working with mission-critical building owners across six verticals: healthcare, industrial/manufacturing, data centers, life science, higher education, and cultural/entertainment.
Limbach Holdings (NASDAQ: LMB) ha riportato risultati finanziari record per l'anno fiscale 2024, con un reddito netto che ha raggiunto i 30,9 milioni di dollari (2,57 dollari per azione diluita), in aumento rispetto ai 20,8 milioni del 2023. L'azienda ha raggiunto un EBITDA rettificato record di 63,7 milioni di dollari, con un incremento del 36,1% rispetto all'anno precedente.
Tra i punti salienti ci sono:
- Un profitto lordo annuale record di 144,3 milioni di dollari, in aumento del 20,9%
- I ricavi delle relazioni dirette con i proprietari sono aumentati del 31,9% raggiungendo i 345,5 milioni di dollari
- Un reddito netto rettificato di 43,2 milioni di dollari (3,60 dollari per azione diluita rettificata)
Per il 2025, Limbach prevede ricavi tra 610 e 630 milioni di dollari e un EBITDA rettificato tra 78 e 82 milioni di dollari. L'azienda ha completato due acquisizioni strategiche nel 2024 e continua a concentrarsi sul lavoro con proprietari di edifici mission-critical in sei settori: sanità, industriale/manifatturiero, centri dati, scienze della vita, istruzione superiore e culturale/intrattenimento.
Limbach Holdings (NASDAQ: LMB) reportó resultados financieros récord para el año fiscal 2024, con un ingreso neto que alcanzó los 30,9 millones de dólares (2,57 dólares por acción diluida), un aumento respecto a los 20,8 millones de 2023. La compañía logró un EBITDA ajustado récord de 63,7 millones de dólares, un incremento del 36,1% en comparación con el año anterior.
Los puntos destacados incluyen:
- Un beneficio bruto anual récord de 144,3 millones de dólares, un aumento del 20,9%
- Los ingresos por relaciones directas con propietarios aumentaron un 31,9% hasta 345,5 millones de dólares
- Un ingreso neto ajustado de 43,2 millones de dólares (3,60 dólares por acción diluida ajustada)
Para 2025, Limbach proyecta ingresos de entre 610 y 630 millones de dólares y un EBITDA ajustado de entre 78 y 82 millones de dólares. La compañía completó dos adquisiciones estratégicas en 2024 y mantiene un enfoque en trabajar con propietarios de edificios críticos para la misión en seis verticales: salud, industrial/manufactura, centros de datos, ciencias de la vida, educación superior y cultural/entretenimiento.
림바흐 홀딩스 (NASDAQ: LMB)는 2024 회계연도에 대한 기록적인 재무 결과를 보고했으며, 순이익은 3,090만 달러(희석 주당 2.57달러)에 달하며, 이는 2023년의 2,080만 달러에서 증가한 수치입니다. 이 회사는 63.7백만 달러의 조정 EBITDA 기록을 달성했습니다, 이는 전년 대비 36.1% 증가한 수치입니다.
주요 하이라이트는 다음과 같습니다:
- 연간 총 이익이 1억 4,430만 달러로 20.9% 증가했습니다.
- 소유자 직접 관계 수익이 31.9% 증가하여 3억 4,550만 달러에 달했습니다.
- 조정된 순이익은 4,320만 달러(조정된 희석 주당 3.60달러)입니다.
2025년을 위해 림바흐는 6억 1천만 달러에서 6억 3천만 달러의 수익과 7천8백만 달러에서 8천2백만 달러의 조정 EBITDA를 예상하고 있습니다. 이 회사는 2024년에 두 건의 전략적 인수를 완료했으며, 의료, 산업/제조, 데이터 센터, 생명 과학, 고등 교육, 문화/오락의 6개 분야에서 미션 크리티컬 빌딩 소유자와 협력하는 데 집중하고 있습니다.
Limbach Holdings (NASDAQ: LMB) a annoncé des résultats financiers records pour l'exercice 2024, avec un revenu net atteignant 30,9 millions de dollars (2,57 dollars par action diluée), en hausse par rapport à 20,8 millions de dollars en 2023. L'entreprise a atteint un EBITDA ajusté record de 63,7 millions de dollars, soit une augmentation de 36,1 % par rapport à l'année précédente.
Les points clés incluent:
- Un bénéfice brut annuel record de 144,3 millions de dollars, en hausse de 20,9 %
- Les revenus des relations directes avec les propriétaires ont augmenté de 31,9 % pour atteindre 345,5 millions de dollars
- Un revenu net ajusté de 43,2 millions de dollars (3,60 dollars par action diluée ajustée)
Pour 2025, Limbach prévoit des revenus compris entre 610 et 630 millions de dollars et un EBITDA ajusté entre 78 et 82 millions de dollars. L'entreprise a réalisé deux acquisitions stratégiques en 2024 et continue de se concentrer sur la collaboration avec des propriétaires de bâtiments critiques pour la mission dans six secteurs : santé, industrie/manufacture, centres de données, sciences de la vie, enseignement supérieur et culturel/divertissement.
Limbach Holdings (NASDAQ: LMB) hat für das Geschäftsjahr 2024 Rekordergebnisse bekannt gegeben, mit einem Nettogewinn von 30,9 Millionen Dollar (2,57 Dollar pro verwässerter Aktie), ein Anstieg von 20,8 Millionen Dollar im Jahr 2023. Das Unternehmen erzielte ein rekordverdächtiges bereinigtes EBITDA von 63,7 Millionen Dollar, was einem Anstieg von 36,1 % im Vergleich zum Vorjahr entspricht.
Wichtige Höhepunkte sind:
- Ein rekordverdächtiger Bruttogewinn von 144,3 Millionen Dollar für das gesamte Jahr, ein Anstieg von 20,9 %
- Die Einnahmen aus direkten Eigentümern-Beziehungen stiegen um 31,9 % auf 345,5 Millionen Dollar
- Bereinigter Nettogewinn von 43,2 Millionen Dollar (3,60 Dollar pro bereinigter verwässerter Aktie)
Für 2025 prognostiziert Limbach Einnahmen zwischen 610 und 630 Millionen Dollar und ein bereinigtes EBITDA zwischen 78 und 82 Millionen Dollar. Das Unternehmen hat 2024 zwei strategische Übernahmen abgeschlossen und konzentriert sich weiterhin auf die Zusammenarbeit mit mission-kritischen Gebäudeeigentümern in sechs Bereichen: Gesundheitswesen, Industrie/Fertigung, Rechenzentren, Lebenswissenschaften, Hochschulbildung und Kultur/Unterhaltung.
- Record net income of $30.9M, up 48.8% YoY
- Record adjusted EBITDA of $63.7M, up 36.1%
- Gross profit margin increased from 23.1% to 27.8%
- Strong ODR revenue growth of 31.9%
- Positive 2025 guidance indicating continued growth
- SG&A expenses increased by $9.8M to $97.2M
- Operating cash flow decreased from $57.4M to $36.8M
- Current ratio declined from 1.50x to 1.46x
- GCR segment revenue decreased by 31.9%
Insights
Limbach Holdings delivered exceptional financial performance in Q4 and full-year 2024, with record results across key metrics that reflect successful execution of their strategic transformation. The company achieved record net income of
The company's strategic pivot toward Owner Direct Relationships (ODR) continues to drive margin expansion, with ODR revenue climbing
Q4 results were particularly strong, with quarterly adjusted EBITDA jumping
Management provided optimistic 2025 guidance of
Limbach's impressive financial performance reflects the successful execution of a fundamental business model transformation that has far-reaching implications for investors. The company's strategic shift toward direct owner relationships has created a structurally more profitable business with enhanced revenue durability and reduced cyclicality.
The margin expansion story is particularly compelling - gross margins increased by
Limbach's focus on mission-critical infrastructure in high-value sectors like healthcare, data centers, and life sciences provides significant defensive characteristics while maintaining growth potential. The company's
Their M&A strategy targeting
This earnings report demonstrates that Limbach has successfully executed the difficult transition from a construction-oriented business to a higher-margin, more predictable facility services provider - positioning the company for enhanced shareholder value as both growth and margins expand.
Delivered FY2024 Record Net Income and Record Adjusted EBITDA
2024 Highlights Compared to 2023
-
Record full-year net income of
$30.9 million $2.57 $20.8 million $1.76 -
Record adjusted net income of
$43.2 million $3.60 $29.2 million $2.48 -
Record full-year adjusted EBITDA of
$63.7 million 36.1% from$46.8 million -
Owner Direct Relationships (“ODR”) revenue increased
31.9% , or$83.5 million $345.5 million 66.6% of total revenue. -
Record full-year total gross profit of
$144.3 million 20.9% from$119.3 million - Completed two strategic acquisitions.
2024 Fourth Quarter Highlights Compared to 2023 Fourth Quarter
-
Record net income of
$9.8 million $0.82 $5.2 million $0.44 -
Record adjusted net income of
$13.8 million $1.15 $8.1 million $0.68 -
Record adjusted EBITDA of
$20.8 million 65.5% from$12.6 million -
ODR revenue increased
21.4% , or$16.9 million $95.5 million 66.5% of total revenue. -
Record total gross profit of
$43.6 million 30.8% from$33.3 million
Management Comments
“In 2024, we produced record gross profit, record net income and record adjusted EBITDA by expanding and strengthening customer relationships in six verticals – healthcare, industrial and manufacturing, data centers, life science, higher education and cultural and entertainment,” Michael McCann, President and Chief Executive Officer of Limbach Holdings, said. “As a result of this momentum, for 2025 we estimate revenue of
“Throughout 2024, we created value for our customers, drove margin expansion, and delivered record profitability for our stockholders by executing the three pillars of our strategy: shifting our revenue mix from general contractor new construction projects to working directly for building owners on existing facilities, evolving our service offerings and scaling through acquisitions.
“Our dedicated account team structure and customer centric approach focus on existing buildings and create durable demand across economic cycles. We have expanded our reach and added value through our integrated facility planning, rental equipment, equipment replacements and retrofits, and maintenance and repair services. This allows us to provide comprehensive support across our customers' capital and operational budgets. Although we have made progress, we believe we still have significant opportunity to grow market share while growing our bottom line.
“We grew our business through two strategic acquisitions in 2024. Our acquisition strategy is that each new partnership should enhance our culture, fill a niche, prioritize building owner relationships and follow a proven value creation process to drive growth and long-term impact. Our current goal is to produce
“We have been transitioning the business to ODR for the past five years and are nearing the point of achieving steady topline growth both organically and from acquisitions. We continue to focus on working closely with mission-critical building owners whose aging infrastructure is critical to their operations. By specializing in existing buildings, we support customers and help drive sustainable, long-term growth.”
The following are results for the year-ended December 31, 2024, compared to the year-ended December 31, 2023:
-
Total revenue was
$518.8 million 0.5% from$516.4 million $345.5 million $83.5 million 31.9% , while General Contractor Relationships (“GCR”) segment revenue of$173.3 million $81.1 million 31.9% . The increase in year-over-year ODR segment revenue primarily was due to the Company's continued focus on the accelerated growth of its ODR business. In addition, ODR segment revenue increased in the aggregate by approximately$31.5 million
-
Total gross profit was
$144.3 million $119.3 million $31.7 million 41.6% , due to the combination of an increase in revenue, higher margins driven by contract mix and as a result of the ACME and Industrial Air transactions. GCR gross profit decreased$6.7 million 15.5% , primarily due to lower revenue despite higher margins. The total gross profit percentage increased from23.1% to27.8% , mainly driven by the mix of higher margin ODR segment work, the Company becoming more selective when pursuing GCR work, and net material gross profit write-ups.
-
SG&A expense increased approximately
$9.8 million $97.2 million $87.4 million $6.5 million $4.1 million $0.9 million $0.7 million $1.0 million 18.7% , up from16.9% .
-
Interest expense was relatively flat at
$1.9 million $2.0 million
-
Interest income was
$2.2 million $1.2 million U.S. Treasury Bills, and money market funds year-over-year.
-
Net income for the year was
$30.9 million $20.8 million 48.8% . Diluted earnings per share were$2.57 $1.76
-
Adjusted net income was
$43.2 million $29.2 million 48.2% . Adjusted diluted earnings per share were$3.60 $2.48
-
Adjusted EBITDA was
$63.7 million $46.8 million 36.1% .
-
Net cash provided by operating activities was
$36.8 million $57.4 million
The following are results for the three months ended December 31, 2024, compared to the three months ended December 31, 2023:
-
Total revenue was
$143.7 million 0.7% from$142.7 million $95.5 million $16.9 million 21.4% , while GCR segment revenue of$48.2 million $15.9 million 24.8% . The increase in quarter-over-quarter ODR segment revenue was primarily due to the Company's continued focus on accelerating the growth of its ODR business. The decrease in quarter-over-quarter GCR segment revenue was primarily due to the Company’s continued focus on the execution of its mix-shift strategy to ODR.
-
Total gross profit was
$43.6 million $33.3 million $6.9 million 29.3% , due to the combination of an increase in revenue and higher margins of32.1% versus30.1% driven by contract mix. GCR gross profit increased$3.3 million 34.5% , primarily due to higher margins of26.9% compared to15.0% despite lower revenue. The total gross profit percentage increased from23.3% to30.3% , mainly driven by the mix of higher margin ODR segment work, the Company continuing to be more selective when pursuing GCR work and net material gross profit write-ups.
-
SG&A expense increased approximately
$2.4 million $27.4 million $25.0 million $2.8 million $0.5 million 19.1% , up from17.5% .
-
Interest expense was relatively flat at
$0.5 million $0.4 million
-
Interest income was
$0.5 million $0.6 million U.S. Treasury Bills, and money market funds period-over-period.
-
Net income was
$9.8 million $5.2 million 87.5% . Diluted earnings per share were$0.82 $0.44
-
Adjusted net income was
$13.8 million $8.1 million 70.9% . Adjusted diluted earnings per share were$1.15 $0.68
-
Adjusted EBITDA was
$20.8 million $12.6 million 65.5% .
-
Net cash provided by operating activities increased to
$19.3 million $13.9 million
Balance Sheet
At December 31, 2024, cash and cash equivalents were
2025 Guidance
The Company is providing initial 2025 full year guidance, as summarized in the table below.
Revenue |
|
|
Adjusted EBITDA |
|
|
With respect to projected 2025 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: |
Tuesday, March 11, 2025 |
||
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=lKPAAXs2. 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 approximately 1,400 team members in 20 offices across the eastern
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, projected EBITDA production from possible acquisitions, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, 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 and the Company’s business being negatively affected by the health crises or outbreaks of diseases, such as epidemics or pandemics (and related impacts, such as supply chain disruptions). 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. 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 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. Consolidated Statements of Operations |
|||||||||||||||
(in thousands, except share and per share data) |
(Unaudited) For the Quarter Ended December 31, |
|
For the Years Ended December 31, |
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
$ |
143,650 |
|
|
$ |
142,691 |
|
|
$ |
518,781 |
|
|
$ |
516,350 |
|
Cost of revenue |
|
100,079 |
|
|
|
109,385 |
|
|
|
374,500 |
|
|
|
397,060 |
|
Gross profit |
|
43,571 |
|
|
|
33,306 |
|
|
|
144,281 |
|
|
|
119,290 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
|
27,399 |
|
|
|
24,964 |
|
|
|
97,199 |
|
|
|
87,397 |
|
Change in fair value of contingent consideration |
|
1,426 |
|
|
|
265 |
|
|
|
3,770 |
|
|
|
729 |
|
Amortization of intangibles |
|
1,732 |
|
|
|
826 |
|
|
|
4,688 |
|
|
|
1,880 |
|
Total operating expenses |
|
30,557 |
|
|
|
26,055 |
|
|
|
105,657 |
|
|
|
90,006 |
|
Operating income |
|
13,014 |
|
|
|
7,251 |
|
|
|
38,624 |
|
|
|
29,284 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(494 |
) |
|
|
(431 |
) |
|
|
(1,869 |
) |
|
|
(2,046 |
) |
Interest income |
|
493 |
|
|
|
593 |
|
|
|
2,227 |
|
|
|
1,217 |
|
Loss on early debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(311 |
) |
Gain (loss) on change in fair value of interest swap |
|
164 |
|
|
|
(277 |
) |
|
|
34 |
|
|
|
(124 |
) |
Gain on disposition of property and equipment |
|
294 |
|
|
|
52 |
|
|
|
950 |
|
|
|
80 |
|
Total other income (expenses) |
|
457 |
|
|
|
(63 |
) |
|
|
1,342 |
|
|
|
(1,184 |
) |
Income before income taxes |
|
13,471 |
|
|
|
7,188 |
|
|
|
39,966 |
|
|
|
28,100 |
|
Income tax provision |
|
3,629 |
|
|
|
1,939 |
|
|
|
9,091 |
|
|
|
7,346 |
|
Net income |
$ |
9,842 |
|
|
$ |
5,249 |
|
|
$ |
30,875 |
|
|
$ |
20,754 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Share (“EPS”) |
|
|
|
|
|
|
|
||||||||
Net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.87 |
|
|
$ |
0.48 |
|
|
$ |
2.75 |
|
|
$ |
1.93 |
|
Diluted |
$ |
0.82 |
|
|
$ |
0.44 |
|
|
$ |
2.57 |
|
|
$ |
1.76 |
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
11,273,101 |
|
|
|
11,003,424 |
|
|
|
11,243,714 |
|
|
|
10,773,467 |
|
Diluted |
|
12,066,569 |
|
|
|
11,865,450 |
|
|
|
12,027,398 |
|
|
|
11,812,098 |
|
LIMBACH HOLDINGS, INC. Consolidated Balance Sheets |
|||||||
|
As of December 31, |
||||||
(in thousands, except share data) |
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
44,930 |
|
|
$ |
59,833 |
|
Restricted cash |
|
65 |
|
|
|
65 |
|
Accounts receivable (net of allowance for credit losses of |
|
119,659 |
|
|
|
97,755 |
|
Contract assets |
|
47,549 |
|
|
|
51,690 |
|
Advances to and equity in joint ventures, net |
|
5 |
|
|
|
12 |
|
Other current assets |
|
8,126 |
|
|
|
7,645 |
|
Total current assets |
|
220,334 |
|
|
|
217,000 |
|
|
|
|
|
||||
Property and equipment, net |
|
30,126 |
|
|
|
20,830 |
|
Intangible assets, net |
|
41,228 |
|
|
|
24,999 |
|
Goodwill |
|
33,034 |
|
|
|
16,374 |
|
Operating lease right-of-use assets |
|
21,539 |
|
|
|
19,727 |
|
Deferred tax asset |
|
5,531 |
|
|
|
5,179 |
|
Other assets |
|
337 |
|
|
|
330 |
|
Total assets |
$ |
352,129 |
|
|
$ |
304,439 |
|
|
|
|
|
||||
LIABILITIES |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
3,314 |
|
|
$ |
2,680 |
|
Current operating lease liabilities |
|
4,093 |
|
|
|
3,627 |
|
Accounts payable, including retainage |
|
60,814 |
|
|
|
65,268 |
|
Contract liabilities |
|
44,519 |
|
|
|
42,160 |
|
Accrued income taxes |
|
1,470 |
|
|
|
446 |
|
Accrued expenses and other current liabilities |
|
36,827 |
|
|
|
30,967 |
|
Total current liabilities |
|
151,037 |
|
|
|
145,148 |
|
Long-term debt |
|
23,554 |
|
|
|
19,631 |
|
Long-term operating lease liabilities |
|
17,766 |
|
|
|
16,037 |
|
Other long-term liabilities |
|
6,281 |
|
|
|
2,708 |
|
Total liabilities |
|
198,638 |
|
|
|
183,524 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable convertible preferred stock, net, par value |
|
— |
|
|
|
— |
|
|
|
|
|
||||
STOCKHOLDERS’ EQUITY |
|
|
|
||||
Common stock, |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
94,229 |
|
|
|
92,528 |
|
Treasury stock, at cost (179,652 shares at both period ends) |
|
(2,000 |
) |
|
|
(2,000 |
) |
Retained earnings |
|
61,261 |
|
|
|
30,386 |
|
Total stockholders’ equity |
|
153,491 |
|
|
|
120,915 |
|
Total liabilities and stockholders’ equity |
$ |
352,129 |
|
|
$ |
304,439 |
|
LIMBACH HOLDINGS, INC. Consolidated Statements of Cash Flows |
|||||||
|
Year Ended December 31, |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
30,875 |
|
|
$ |
20,754 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
11,888 |
|
|
|
8,244 |
|
Noncash operating lease expense |
|
4,115 |
|
|
|
3,824 |
|
Provision for credit losses / doubtful accounts |
|
201 |
|
|
|
431 |
|
Stock-based compensation expense |
|
5,773 |
|
|
|
4,910 |
|
Loss on early debt extinguishment |
|
— |
|
|
|
311 |
|
Amortization of debt issuance costs |
|
43 |
|
|
|
79 |
|
Deferred income tax provision |
|
(352 |
) |
|
|
(350 |
) |
Gain on sale of property and equipment |
|
(950 |
) |
|
|
(80 |
) |
(Gain) loss on change in fair value of interest rate swap |
|
(34 |
) |
|
|
124 |
|
Loss on change in fair value of contingent consideration |
|
3,770 |
|
|
|
729 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(11,275 |
) |
|
|
32,607 |
|
Contract assets |
|
8,506 |
|
|
|
10,397 |
|
Other current assets |
|
(499 |
) |
|
|
(1,486 |
) |
Accounts payable, including retainage |
|
(10,298 |
) |
|
|
(10,909 |
) |
Contract liabilities |
|
(2,949 |
) |
|
|
(9,121 |
) |
Income tax receivable |
|
— |
|
|
|
95 |
|
Accrued income taxes |
|
1,024 |
|
|
|
(1,442 |
) |
Accrued expenses and other current liabilities |
|
3,111 |
|
|
|
2,867 |
|
Operating lease liabilities |
|
(3,850 |
) |
|
|
(3,795 |
) |
Payment of contingent consideration liability in excess of acquisition-date fair value |
|
(2,175 |
) |
|
|
(1,224 |
) |
Other long-term liabilities |
|
(141 |
) |
|
|
401 |
|
Net cash provided by operating activities |
|
36,783 |
|
|
|
57,366 |
|
Cash flows from investing activities: |
|
|
|
||||
Kent Island Transaction, net of cash acquired |
|
(13,387 |
) |
|
|
— |
|
Consolidated Mechanical Transaction, net of cash acquired |
|
(23,201 |
) |
|
|
— |
|
ACME Transaction, net of cash acquired |
|
— |
|
|
|
(4,883 |
) |
Industrial Air Transaction, net of cash acquired |
|
— |
|
|
|
(10,378 |
) |
Proceeds from sale of property and equipment |
|
1,536 |
|
|
|
435 |
|
Purchase of property and equipment |
|
(7,524 |
) |
|
|
(2,266 |
) |
Advances from joint ventures |
|
7 |
|
|
|
— |
|
Net cash used in investing activities |
|
(42,569 |
) |
|
|
(17,092 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payments on Wintrust and 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 |
) |
Repurchase of common stock under Share Repurchase Program |
|
— |
|
|
|
— |
|
Payments on finance leases |
|
(3,045 |
) |
|
|
(2,733 |
) |
Proceeds from contributions to employee stock purchase plan |
|
440 |
|
|
|
368 |
|
Taxes paid related to net-share settlement of equity awards |
|
(5,187 |
) |
|
|
(847 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(50 |
) |
Net cash used in financing activities |
|
(9,117 |
) |
|
|
(16,490 |
) |
(Decrease) increase in cash, cash equivalents and restricted cash |
|
(14,903 |
) |
|
|
23,784 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
59,898 |
|
|
|
36,114 |
|
Cash, cash equivalents and restricted cash, end of year |
$ |
44,995 |
|
|
$ |
59,898 |
|
|
|
|
|
||||
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 Consolidated Mechanical Transaction |
|
757 |
|
|
|
— |
|
Earnout liability associated with the ACME Transaction |
|
— |
|
|
|
1,514 |
|
Earnout liability associated with the Industrial Air Transaction |
|
— |
|
|
|
3,165 |
|
Right of use assets obtained in exchange for new operating lease liabilities |
|
4,775 |
|
|
|
3,135 |
|
Right of use assets obtained in exchange for new finance lease liabilities |
|
7,586 |
|
|
|
5,219 |
|
Right of use assets disposed or adjusted modifying operating leases liabilities |
|
1,268 |
|
|
|
1,112 |
|
Right of use assets disposed or adjusted modifying finance leases liabilities |
|
— |
|
|
|
(93 |
) |
Interest paid |
|
1,899 |
|
|
|
1,908 |
|
Cash paid for income taxes |
$ |
8,529 |
|
|
$ |
9,156 |
|
LIMBACH HOLDINGS, INC. Consolidated Statements of Operations (Unaudited) |
||||||||||||||||||
|
Three Months Ended December 31, |
|
Increase/(Decrease) |
|||||||||||||||
(in thousands, except for percentages) |
2024 |
|
2023 |
|
$ |
|
% |
|||||||||||
Statement of Operations Data: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
ODR |
$ |
95,483 |
|
66.5 |
% |
|
$ |
78,628 |
|
55.1 |
% |
|
$ |
16,855 |
|
|
21.4 |
% |
GCR |
|
48,167 |
|
33.5 |
% |
|
|
64,063 |
|
44.9 |
% |
|
|
(15,896 |
) |
|
(24.8 |
)% |
Total revenue |
|
143,650 |
|
100.0 |
% |
|
|
142,691 |
|
100.0 |
% |
|
|
959 |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
ODR(1) |
|
30,605 |
|
32.1 |
% |
|
|
23,666 |
|
30.1 |
% |
|
|
6,939 |
|
|
29.3 |
% |
GCR(2) |
|
12,966 |
|
26.9 |
% |
|
|
9,640 |
|
15.0 |
% |
|
|
3,326 |
|
|
34.5 |
% |
Total gross profit |
|
43,571 |
|
30.3 |
% |
|
|
33,306 |
|
23.3 |
% |
|
|
10,265 |
|
|
30.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total selling, general and administrative(3) |
|
27,399 |
|
19.1 |
% |
|
|
24,964 |
|
17.5 |
% |
|
|
2,435 |
|
|
9.8 |
% |
Change in fair value of contingent consideration |
|
1,426 |
|
1.0 |
% |
|
|
265 |
|
0.2 |
% |
|
|
1,161 |
|
|
438.1 |
% |
Amortization of intangibles |
|
1,732 |
|
1.2 |
% |
|
|
826 |
|
0.6 |
% |
|
|
906 |
|
|
109.7 |
% |
Total operating income |
$ |
13,014 |
|
9.1 |
% |
|
$ |
7,251 |
|
5.1 |
% |
|
$ |
5,763 |
|
|
79.5 |
% |
| (1) | As a percentage of ODR revenue. |
|
| (2) | As a percentage of GCR revenue. |
|
| (3) |
Included within selling, general and administrative expenses was |
LIMBACH HOLDINGS, INC. Consolidated Statements of Operations |
||||||||||||||||||
|
Year Ended December 31, |
|
Increase/(Decrease) |
|||||||||||||||
(in thousands, except for percentages) |
2024 |
|
2023 |
|
$ |
|
% |
|||||||||||
Statement of Operations Data: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
ODR |
$ |
345,500 |
|
66.6 |
% |
|
$ |
261,958 |
|
50.7 |
% |
|
$ |
83,542 |
|
|
31.9 |
% |
GCR |
|
173,281 |
|
33.4 |
% |
|
|
254,392 |
|
49.3 |
% |
|
|
(81,111 |
) |
|
(31.9 |
)% |
Total revenue |
|
518,781 |
|
100.0 |
% |
|
|
516,350 |
|
100.0 |
% |
|
|
2,431 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
ODR(1) |
|
107,775 |
|
31.2 |
% |
|
|
76,090 |
|
29.0 |
% |
|
|
31,685 |
|
|
41.6 |
% |
GCR(2) |
|
36,506 |
|
21.1 |
% |
|
|
43,200 |
|
17.0 |
% |
|
|
(6,694 |
) |
|
(15.5 |
)% |
Total gross profit |
|
144,281 |
|
27.8 |
% |
|
|
119,290 |
|
23.1 |
% |
|
|
24,991 |
|
|
20.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total selling, general and administrative(3) |
|
97,199 |
|
18.7 |
% |
|
|
87,397 |
|
16.9 |
% |
|
|
9,802 |
|
|
11.2 |
% |
Change in fair value of contingent consideration |
|
3,770 |
|
0.7 |
% |
|
|
729 |
|
0.1 |
% |
|
|
3,041 |
|
|
417.1 |
% |
Amortization of intangibles |
|
4,688 |
|
0.9 |
% |
|
|
1,880 |
|
0.4 |
% |
|
|
2,808 |
|
|
149.4 |
% |
Total operating income |
$ |
38,624 |
|
7.4 |
% |
|
$ |
29,284 |
|
5.7 |
% |
|
$ |
9,340 |
|
|
31.9 |
% |
| (1) | As a percentage of ODR revenue. |
|
| (2) | As a percentage of GCR revenue. |
|
| (3) |
Included within selling, general and administrative expenses was |
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, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share, which are non-GAAP financial measures.
Adjusted EBITDA and Adjusted EBITDA Margin
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. Our board of directors and executive management team focus on Adjusted EBITDA and Adjusted EBITDA Margin as two of our key performance and compensation measures. Adjusted EBITDA and Adjusted EBITDA Margin assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of certain items that do not necessarily reflect our core operations. 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.
Adjusted Net Income and Adjusted Diluted Earnings per Share
We define Adjusted Net Income as net income, adjusted to exclude certain items that do not reflect our core operating performance, such as amortization of intangible assets, non-cash stock-based compensation, restructuring charges, the change in fair value of contingent consideration, acquisition and other transaction costs and the net tax effect of reconciling items, as further adjusted to eliminate the impact of, when applicable, other non-cash or expenses that are unusual or non-recurring. We define Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted average diluted shares outstanding. We believe Adjusted Net Income and Adjusted Diluted Earnings per Share are useful to investors as we use these metrics to assist with strategic decision making, forecasting future results, and evaluating current performance.
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, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share. Our calculations of these non-GAAP measures, 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, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA and net income to Adjusted Net Income, the most comparable GAAP measures, are 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 (unaudited)
|
For the Three Months Ended December 31, |
|
For the Years Ended December 31, |
||||||||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
9,842 |
|
|
$ |
5,249 |
|
|
$ |
30,875 |
|
|
$ |
20,754 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
3,627 |
|
|
|
2,493 |
|
|
|
11,888 |
|
|
|
8,244 |
|
Interest expense |
|
494 |
|
|
|
431 |
|
|
|
1,869 |
|
|
|
2,046 |
|
Interest income |
|
(493 |
) |
|
|
(593 |
) |
|
|
(2,227 |
) |
|
|
(1,217 |
) |
Non-cash stock-based compensation expense |
|
1,450 |
|
|
|
1,536 |
|
|
|
5,773 |
|
|
|
4,910 |
|
Loss on early debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
311 |
|
Change in fair value of interest rate swap |
|
(164 |
) |
|
|
277 |
|
|
|
(34 |
) |
|
|
124 |
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
958 |
|
Restructuring costs(1) |
|
600 |
|
|
|
681 |
|
|
|
1,427 |
|
|
|
1,770 |
|
Change in fair value of contingent consideration |
|
1,426 |
|
|
|
265 |
|
|
|
3,770 |
|
|
|
729 |
|
Income tax provision |
|
3,629 |
|
|
|
1,939 |
|
|
|
9,091 |
|
|
|
7,346 |
|
Acquisition and other transaction costs |
|
405 |
|
|
|
302 |
|
|
|
1,282 |
|
|
|
826 |
|
Adjusted EBITDA |
$ |
20,816 |
|
|
$ |
12,580 |
|
|
$ |
63,714 |
|
|
$ |
46,801 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
143,650 |
|
|
$ |
142,691 |
|
|
$ |
518,781 |
|
|
$ |
516,350 |
|
Adjusted EBITDA margin |
|
14.5 |
% |
|
|
8.8 |
% |
|
|
12.3 |
% |
|
|
9.1 |
% |
| (1) |
For the years ended December 31, 2024 and 2023, the majority of the restructuring costs related to our |
Reconciliation to Adjusted Net Income and Adjusted Diluted Earnings Per Share (unaudited)
|
Three Months Ended December 31, |
|
For the Years Ended December 31, |
||||||||||||||||||||||||||||
(in thousands, except share and per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||||||
Net income and diluted earnings per share |
$ |
9,842 |
|
|
$ |
0.82 |
|
|
$ |
5,249 |
|
|
$ |
0.44 |
|
|
$ |
30,875 |
|
|
$ |
2.57 |
|
|
$ |
20,754 |
|
|
$ |
1.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pre-tax Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of acquisition-related intangible assets |
|
1,732 |
|
|
|
0.14 |
|
|
|
826 |
|
|
|
0.07 |
|
|
|
4,688 |
|
|
|
0.39 |
|
|
|
1,880 |
|
|
|
0.16 |
|
Non-cash stock-based compensation expense |
|
1,450 |
|
|
|
0.12 |
|
|
|
1,536 |
|
|
|
0.13 |
|
|
|
5,773 |
|
|
|
0.48 |
|
|
|
4,910 |
|
|
|
0.42 |
|
Loss on early debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
311 |
|
|
|
0.03 |
|
Change in fair value of interest rate swap |
|
(164 |
) |
|
|
(0.01 |
) |
|
|
277 |
|
|
|
0.02 |
|
|
|
(34 |
) |
|
|
— |
|
|
|
124 |
|
|
|
0.01 |
|
Restructuring costs(1) |
|
600 |
|
|
|
0.05 |
|
|
|
681 |
|
|
|
0.06 |
|
|
|
1,427 |
|
|
|
0.12 |
|
|
|
1,770 |
|
|
|
0.15 |
|
Change in fair value of contingent consideration |
|
1,426 |
|
|
|
0.12 |
|
|
|
265 |
|
|
|
0.02 |
|
|
|
3,770 |
|
|
|
0.31 |
|
|
|
729 |
|
|
|
0.06 |
|
Acquisition and other transaction costs |
|
405 |
|
|
|
0.03 |
|
|
|
302 |
|
|
|
0.03 |
|
|
|
1,282 |
|
|
|
0.11 |
|
|
|
826 |
|
|
|
0.07 |
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
958 |
|
|
|
0.08 |
|
Tax effect of reconciling items(2) |
|
(1,471 |
) |
|
|
(0.12 |
) |
|
|
(1,049 |
) |
|
|
(0.09 |
) |
|
|
(4,564 |
) |
|
|
(0.38 |
) |
|
|
(3,107 |
) |
|
|
(0.26 |
) |
Adjusted net income and adjusted diluted earnings per share |
$ |
13,820 |
|
|
$ |
1.15 |
|
|
$ |
8,087 |
|
|
$ |
0.68 |
|
|
$ |
43,217 |
|
|
$ |
3.60 |
|
|
$ |
29,155 |
|
|
$ |
2.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average number of shares outstanding: Diluted |
|
|
|
12,066,569 |
|
|
|
|
|
11,865,450 |
|
|
|
|
|
12,027,398 |
|
|
|
|
|
11,812,098 |
|
||||||||
| (1) |
For the years ended December 31, 2024 and 2023, the majority of the restructuring costs related to our |
|
| (2) |
The tax effect of reconciling items was calculated using a statutory tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250310359928/en/
Investor Relations
Financial Profiles, Inc.
Julie Kegley
LMB@finprofiles.com
Source: Limbach Holdings, Inc.
FAQ
What were Limbach Holdings' (LMB) key financial achievements in 2024?
What is Limbach's (LMB) revenue guidance for 2025?
How much did Limbach's (LMB) Owner Direct Relationships revenue grow in 2024?
What was Limbach's (LMB) Q4 2024 performance compared to Q4 2023?
