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Southland Announces First Quarter 2024 Results

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GRAPEVINE, Texas--(BUSINESS WIRE)-- 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 $288.1 million for the quarter ended March 31, 2024, up 5% from $274.8 million for the quarter ended March 31, 2023.
  • Gross profit of $20.4 million for the quarter ended March 31, 2024, compared to $18.9 million for the quarter ended March 31, 2023.
  • Net loss attributable to stockholders of $0.4 million, or $(0.01) per share for the quarter ended March 31, 2024, compared to a net loss attributable to stockholders of $4.7 million, or $(0.11) per share for the quarter ended March 31, 2023.
  • Adjusted Net Loss attributable to stockholders of $0.4 million, or $(0.01) per share for the year ended March 31, 2024, compared to an Adjusted Net Loss attributable to stockholders of $1.5 million, or $(0.03) per share for the year ended March 31, 2023. (1)
  • Adjusted EBITDA of $10.9 million for the quarter ended March 31, 2024, compared to $12.7 million for the quarter ended March 31, 2023. (1)
  • Backlog of $2.64 billion, compared to $2.83 billion as of December 31, 2023.

(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 5% and gross margins improving slightly from the prior year. Demand in our core markets for infrastructure construction services remains extremely healthy driven by significant federal spending and robust state and local programs.”

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 $288.1 million, an increase of $13.3 million, or 4.8%, compared to the three months ended March 31, 2023. Materials & Paving business contributed $38.6 million to revenue in the three months ended March 31, 2024.

Gross profit for the three months ended March 31, 2024, was $20.4 million, an increase of $1.5 million, or 7.8%, compared to gross profit of $18.9 million for the three months ended March 31, 2023. Gross profit margin increased from 6.9% to 7.1% for the three months ended March 31, 2024, compared to the three months ended March 31, 2023. Materials & Paving business negatively impacted gross profit by $10.4 million in the three months ended March 31, 2024.

Selling, general, and administrative costs for the three months ended March 31, 2024, were $14.4 million, a decrease of $1.2 million, or 7.6%, compared to the three months ended March 31, 2023. Selling, general, and administrative costs as a percent of revenue were 5.0% for the three months ended March 31, 2024, compared to 5.7% for the three months ended March 31, 2023.

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

 

29.3%

$

72,989

 

26.6%

Transportation

 

203,824

 

70.7%

 

201,840

 

73.4%

Total revenue

$

288,097

 

100.0%

$

274,829

 

100.0%

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

 

21.2%

$

8,766

 

12.0%

Transportation

 

2,551

 

1.3%

 

10,177

 

5.0%

Gross profit

$

20,421

 

7.1%

$

18,943

 

6.9%

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

 

Southland Holdings Inc

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