CORRECTING and REPLACING Southland Announces First Quarter 2024 Results
Southland Holdings (NYSE American: SLND) reported its Q1 2024 results. The company saw a 5% increase in revenue to $288.1 million compared to Q1 2023's $274.8 million. Gross profit rose to $20.4 million from $18.9 million, with a margin increase from 6.9% to 7.1%. The net loss attributable to stockholders decreased significantly to $0.4 million, or $(0.01) per share, from $4.7 million, or $(0.11) per share, in Q1 2023. Adjusted EBITDA fell to $10.9 million from $12.7 million. Southland's backlog decreased to $2.64 billion from $2.83 billion at the end of December 2023. Selling, general, and administrative expenses dropped by 7.6% to $14.4 million. The company highlighted strong demand in its core markets due to substantial federal and local infrastructure investments.
- Revenue increased by 5% to $288.1 million compared to $274.8 million in Q1 2023.
- Gross profit rose to $20.4 million, a 7.8% increase from $18.9 million.
- Net loss attributable to stockholders decreased significantly to $0.4 million from $4.7 million.
- Selling, general, and administrative expenses dropped by 7.6% to $14.4 million.
- Gross profit margin improved from 6.9% to 7.1%.
- Revenue from the Materials & Paving business contributed $38.6 million.
- Segment revenue for the Civil segment increased by 15.5%.
- Adjusted EBITDA decreased to $10.9 million from $12.7 million.
- Backlog decreased from $2.83 billion as of December 31, 2023, to $2.64 billion.
- Interest expense increased to $5.7 million from $3.3 million.
- Materials & Paving business negatively impacted gross profit by $10.4 million.
The updated release reads:
Southland Holdings, Inc. (NYSE American: SLND and SLND WS) (“Southland”), a leading provider of specialized infrastructure construction services, today announced financial results for the quarter ended March 31, 2024.
-
Revenue of
for the quarter ended March 31, 2024, up$288.1 million 5% from for the quarter ended March 31, 2023.$274.8 million -
Gross profit of
for the quarter ended March 31, 2024, compared to$20.4 million for the quarter ended March 31, 2023.$18.9 million -
Net loss attributable to stockholders of
, or$0.4 million per share for the quarter ended March 31, 2024, compared to a net loss attributable to stockholders of$(0.01) , or$4.7 million per share for the quarter ended March 31, 2023.$(0.11) -
Adjusted Net Loss attributable to stockholders of
, or$0.4 million per share for the quarter ended March 31, 2024, compared to an Adjusted Net Loss attributable to stockholders of$(0.01) , or$1.5 million per share for the quarter ended March 31, 2023.$(0.03) -
Adjusted EBITDA of
for the quarter ended March 31, 2024, compared to$10.9 million for the quarter ended March 31, 2023. (1)$12.7 million -
Backlog of
, compared to$2.64 billion as of December 31, 2023.$2.83 billion
(1) |
Please refer to “Non-GAAP Measures” and reconciliations for our non-GAAP financial measures, including, “Adjusted Net Loss,” “Adjusted Net Loss Per Share,” and “Adjusted EBITDA” |
Southland’s President and Chief Executive Officer, Frank Renda, said, “We had a good start to the year in our seasonally slowest quarter, with revenue increasing by
2024 First Quarter Results
Condensed Consolidated Statements of Operations (unaudited) |
|||||
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
March 31, 2024 |
|
March 31, 2023 |
||
Revenue |
$ |
288,097 |
|
$ |
274,829 |
Cost of construction |
|
267,676 |
|
|
255,886 |
Gross profit |
|
20,421 |
|
|
18,943 |
Selling, general, and administrative expenses |
|
14,394 |
|
|
15,571 |
Operating income |
|
6,027 |
|
|
3,372 |
Loss on investments, net |
|
(76) |
|
|
(32) |
Other income (loss), net |
|
536 |
|
|
(2,599) |
Interest expense |
|
(5,655) |
|
|
(3,254) |
Earnings (losses) before income taxes |
|
832 |
|
|
(2,513) |
Income tax expense |
|
307 |
|
|
1,753 |
Net income (loss) |
|
525 |
|
|
(4,266) |
Net income attributable to noncontrolling interests |
|
931 |
|
|
398 |
Net loss attributable to Southland Stockholders |
$ |
(406) |
|
$ |
(4,664) |
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
Basic (1) |
$ |
(0.01) |
|
|
(0.11) |
Diluted (1) |
$ |
(0.01) |
|
|
(0.11) |
Weighted average shares outstanding |
|
|
|
|
|
Basic (1) |
|
47,925,072 |
|
|
44,407,831 |
Diluted (1) |
|
47,925,072 |
|
|
44,407,831 |
(1) |
Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the three months ended March 31, 2024, and March 31 2023, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented. |
Revenue for the three months ended March 31, 2024, was
Gross profit for the three months ended March 31, 2024, was
Selling, general, and administrative costs for the three months ended March 31, 2024, were
Segment Revenue
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
(Amounts in thousands) |
March 31, 2024 |
|
March 31, 2023 |
||||||
|
|
|
|
% of Total |
|
|
|
|
% of Total |
Segment |
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
||
Civil |
$ |
84,273 |
|
|
$ |
72,989 |
|
|
|
Transportation |
|
203,824 |
|
|
|
201,840 |
|
|
|
Total revenue |
$ |
288,097 |
|
|
$ |
274,829 |
|
|
Segment Gross Profit
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
(Amounts in thousands) |
March 31, 2024 |
|
March 31, 2023 |
||||||
|
|
|
% of Segment |
|
|
|
|
% of Segment |
|
Segment |
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
||
Civil |
$ |
17,870 |
|
|
$ |
8,766 |
|
|
|
Transportation |
|
2,551 |
|
|
|
10,177 |
|
|
|
Gross profit |
$ |
20,421 |
|
|
$ |
18,943 |
|
|
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
March 31, 2024 |
|
March 31, 2023 |
||
Net loss attributable to Southland Stockholders |
$ |
(406) |
|
$ |
(4,664) |
Depreciation and amortization |
|
5,577 |
|
|
8,560 |
Income tax expense |
|
307 |
|
|
1,753 |
Interest expense |
|
5,655 |
|
|
3,254 |
Interest income |
|
(184) |
|
|
(137) |
EBITDA |
|
10,949 |
|
|
8,766 |
Transaction related costs |
|
— |
|
|
1,035 |
Contingent earnout consideration non-cash expense reversal |
|
— |
|
|
2,936 |
Adjusted EBITDA |
$ |
10,949 |
|
$ |
12,737 |
Backlog
|
|
|
(Amounts in thousands) |
|
|
Balance December 31, 2023 |
$ |
2,834,966 |
New contracts, change orders, and adjustments |
|
100,893 |
Less: contract revenue recognized in 2024 |
|
(296,947) |
Balance March 31, 2024 |
$ |
2,638,912 |
Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share Attributable to Common Stock Reconciliation
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands except shares and per share data) |
March 31, 2024 |
|
March 31, 2023 |
||
Reconciliation of adjusted net income (loss) attributable to common stock: |
|
|
|
|
|
Net loss attributable to common stock (GAAP as reported) |
$ |
(406) |
|
$ |
(4,664) |
Adjustments: |
|
|
|
|
|
Transaction related costs |
|
— |
|
|
1,035 |
Contingent earnout consideration non-cash expense |
|
— |
|
|
2,936 |
Income tax impact of adjustments (1) |
|
— |
|
|
(774) |
Adjusted net loss attributable to common stockholders |
$ |
(406) |
|
$ |
(1,467) |
|
|
|
|
|
|
Weighted average shares outstanding for diluted and adjusted diluted earnings per share (2) |
|
47,925,072 |
|
|
44,407,831 |
|
|
|
|
|
|
Diluted loss per share attributable to common stock (2) |
$ |
(0.01) |
|
|
(0.11) |
Adjusted diluted loss per share attributable to common stock (2) |
$ |
(0.01) |
|
|
(0.03) |
(1) |
The income tax impact of adjustments that are subject to tax is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. |
|
(2) |
Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for three months ended March 31, 2024, and March 31, 2023, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented |
.
Condensed Consolidated Balance Sheets (unaudited) |
|||||
|
|||||
(Amounts in thousands, except share and per share data) |
As of |
||||
ASSETS |
March 31, 2024 |
|
December 31, 2023 |
||
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
31,239 |
|
$ |
49,176 |
Restricted cash |
|
15,278 |
|
|
14,644 |
Accounts receivable, net |
|
217,233 |
|
|
194,869 |
Retainage receivables |
|
118,558 |
|
|
109,562 |
Contract assets |
|
570,120 |
|
|
554,202 |
Other current assets |
|
14,632 |
|
|
20,083 |
Total current assets |
|
967,060 |
|
|
942,536 |
|
|
|
|
|
|
Property and equipment, net |
|
102,773 |
|
|
102,150 |
Right-of-use assets |
|
10,494 |
|
|
12,492 |
Investments - unconsolidated entities |
|
124,628 |
|
|
121,648 |
Investments - limited liability companies |
|
2,590 |
|
|
2,590 |
Investments - private equity |
|
3,120 |
|
|
3,235 |
Deferred tax asset |
|
11,896 |
|
|
11,496 |
Goodwill |
|
1,528 |
|
|
1,528 |
Intangible assets, net |
|
1,616 |
|
|
1,682 |
Other noncurrent assets |
|
1,711 |
|
|
1,711 |
Total noncurrent assets |
|
260,356 |
|
|
258,532 |
Total assets |
$ |
1,227,416 |
|
$ |
1,201,068 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
202,441 |
|
$ |
162,464 |
Retainage payable |
|
43,422 |
|
|
40,950 |
Accrued liabilities |
|
117,714 |
|
|
124,667 |
Current portion of long-term debt |
|
46,425 |
|
|
48,454 |
Short-term lease liabilities |
|
11,096 |
|
|
14,081 |
Contract liabilities |
|
185,183 |
|
|
193,351 |
Total current liabilities |
|
606,281 |
|
|
583,967 |
|
|
|
|
|
|
Long-term debt |
|
255,590 |
|
|
251,906 |
Long-term lease liabilities |
|
4,985 |
|
|
5,246 |
Deferred tax liabilities |
|
2,250 |
|
|
2,548 |
Long-term accrued liabilities |
|
49,593 |
|
|
49,109 |
Other noncurrent liabilities |
|
47,738 |
|
|
47,728 |
Total long-term liabilities |
|
360,156 |
|
|
356,537 |
Total liabilities |
|
966,437 |
|
|
940,504 |
|
|
|
|
|
|
Commitment and contingencies (Note 7) |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
5 |
|
|
5 |
Additional paid-in-capital |
|
270,801 |
|
|
270,330 |
Accumulated deficit |
|
(19,659) |
|
|
(19,253) |
Accumulated other comprehensive loss |
|
(1,832) |
|
|
(1,460) |
Total stockholders' equity |
|
249,315 |
|
|
249,622 |
Noncontrolling interest |
|
11,664 |
|
|
10,942 |
Total equity |
|
260,979 |
|
|
260,564 |
Total liabilities and equity |
$ |
1,227,416 |
|
$ |
1,201,068 |
Condensed Consolidated Statement of Cash Flows (unaudited) |
|||||
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
March 31, 2024 |
|
March 31, 2023 |
||
Cash flows from operating activities: |
|
|
|
|
|
Net income (loss) |
$ |
525 |
|
$ |
(4,266) |
Adjustments to reconcile net income (loss) to net cash used in operating activities |
|
|
|
|
|
Depreciation and amortization |
|
5,577 |
|
|
8,560 |
Deferred taxes |
|
(642) |
|
|
(514) |
Change in fair value of earnout liability |
|
— |
|
|
2,936 |
Share based compensation |
|
677 |
|
|
— |
Gain on sale of assets |
|
(2,385) |
|
|
(967) |
Foreign currency remeasurement (gain) loss |
|
64 |
|
|
(5) |
Earnings from equity method investments |
|
(1,907) |
|
|
(3,242) |
TZC investment present value accretion |
|
(627) |
|
|
(603) |
Loss on trading securities, net |
|
76 |
|
|
32 |
Changes in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(32,071) |
|
|
(49,278) |
Contract assets |
|
(16,175) |
|
|
(30,306) |
Prepaid expenses and other current assets |
|
5,450 |
|
|
119 |
Right-of-use assets |
|
1,994 |
|
|
(1,764) |
Accounts payable and accrued expenses |
|
40,059 |
|
|
33,705 |
Contract liabilities |
|
(8,162) |
|
|
7,241 |
Operating lease liabilities |
|
(1,883) |
|
|
1,820 |
Other |
|
(467) |
|
|
1,753 |
Net cash used in operating activities |
|
(9,897) |
|
|
(34,779) |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property and equipment |
|
(3,128) |
|
|
(1,166) |
Proceeds from sale of property and equipment |
|
2,657 |
|
|
1,295 |
Contributions to other investments |
|
(13) |
|
|
(81) |
Distributions from other investments |
|
52 |
|
|
— |
Net cash (used in) provided by investing activities |
|
(432) |
|
|
48 |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Borrowings on revolving credit facility |
|
5,000 |
|
|
3,000 |
Borrowings on notes payable |
|
222 |
|
|
181 |
Payments on notes payable |
|
(10,650) |
|
|
(12,382) |
Payments of deferred financing costs |
|
(75) |
|
|
— |
Advances from related parties |
|
— |
|
|
(493) |
Payments from related parties |
|
125 |
|
|
6 |
Payments on finance lease |
|
(1,359) |
|
|
(1,189) |
Distribution to members |
|
— |
|
|
(110) |
Payment of taxes related to net share settlement of RSUs |
|
(206) |
|
|
— |
Other |
|
— |
|
|
17,088 |
Net cash (used in) provided by financing activities |
|
(6,943) |
|
|
6,101 |
|
|
|
|
|
|
Effect of exchange rate on cash |
|
(31) |
|
|
190 |
|
|
|
|
|
|
Net decrease in cash and cash equivalents and restricted cash |
|
(17,303) |
|
|
(28,440) |
Beginning of period |
|
63,820 |
|
|
71,991 |
End of period |
$ |
46,517 |
|
$ |
43,551 |
|
|
|
|
|
|
Supplemental cash flow information |
|
|
|
|
|
Cash refunds from income taxes |
$ |
454 |
|
$ |
87 |
Cash paid for interest |
$ |
5,527 |
|
$ |
3,230 |
Non-cash investing and financing activities: |
|
|
|
|
|
Lease assets obtained in exchange for new leases |
$ |
1,252 |
|
$ |
6,416 |
Assets obtained in exchange for notes payable |
$ |
3,341 |
|
$ |
2,299 |
Related party payable exchanged for note payable |
$ |
3,797 |
|
$ |
— |
Issuance of post-merger earn out shares |
$ |
— |
|
$ |
35,000 |
Dividend financed with notes payable |
$ |
— |
|
$ |
50,000 |
Conference
About
For more information, please visit Southland’s website at www.southlandholdings.com.
Non-GAAP Financial Measures
This press release includes certain unaudited financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including but not limited to earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), backlog, adjusted net income (loss), adjusted net income (loss) per share and certain ratios and other metrics derived therefrom. Note that other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Further, these non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP.
Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Southland’s current and historical results: adjusted net income (loss) per share attributable to common stock (a non-GAAP financial measure) to net income (loss) per share attributable to common stock; and adjusted net income (loss) attributable to common stock, and Adjusted EBITDA (non-GAAP financial measures) to net income (loss) attributable to common stock.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Any forward-looking statement made by
View source version on businesswire.com: https://www.businesswire.com/news/home/20240513759275/en/
Cody Gallarda
EVP, Chief Financial Officer
cgallarda@southlandholdings.com
Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com
Source: Southland Holdings, Inc.
FAQ
What was Southland Holdings' (SLND) revenue for Q1 2024?
How much was the net loss attributable to Southland Holdings' (SLND) stockholders in Q1 2024?
What was Southland Holdings' (SLND) adjusted EBITDA for Q1 2024?
How did Southland Holdings' (SLND) backlog change in Q1 2024?