LMB Limbach Holdings Inc

Raising 2024 Revenue and Adjusted EBITDA Guidance after Delivering Q2 Net Income of $6.0 million and Record Quarterly Adjusted EBITDA of $13.8 million

Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended June 30, 2024.

2024 Second Quarter Financial Overview Compared to 2023 Second Quarter

• Owner Direct Relationships (“ODR”) revenue increased 40.8%, or $24.0 million, to $82.8 million accounting for 67.7% of total revenue.
• Total revenue was $122.2 million, a decrease of 2.1% from $124.9 million.
• Total gross profit was $33.5 million, an increase of 17.5% from $28.5 million.
• ODR gross profit accounted for $25.4 million, or 75.7%, of total gross profit.
• Record quarterly total gross margin of 27.4%.
• Net income of $6.0 million, or $0.50 per diluted share, compared to net income of $5.3 million, or $0.46 per diluted share.
• Adjusted EBITDA of $13.8 million, up 16.0% from $11.9 million.
• Net cash provided by operating activities of $16.5 million compared to $16.9 million.

Management Comments

“Our team made strong progress in executing our strategic plan to grow our higher margin ODR business in the second quarter”, said Michael McCann, Limbach’s President and Chief Executive Officer. “In the first quarter we set a goal to achieve an ODR contribution of 65% to 70% in 2024, up from 50% last year. This quarter, our ODR business accounted for 67.7% of total revenue, so we are well on our way to achieving this objective. These strong results, which includes acquisitions, demonstrate that our strategy is working, and our customer value proposition is compelling.

“I am proud of our team as they propel the company in becoming an indispensable partner providing mission critical solutions to help customers maintain uninterrupted operations in their facilities. Our strategy is to establish long-lasting relationships by having our professionals onsite at key accounts to address immediate needs while also planning for longer-term capital projects.

“Our transition to the ODR business is evolving at a faster pace than we anticipated. As a result, we are increasing our 2024 adjusted EBITDA guidance range to $55 million to $58 million from the current range of $51 million to $55 million. Once ODR reaches the approximately 80% level of our total segment revenue mix, which would include the impact of acquisitions, we expect to see total revenue growth and continued margin expansion.

“We enter the second half of 2024 with strong business momentum and a healthy balance sheet as we continue to evaluate a strong pipeline of potential acquisitions. Our focus on existing buildings with mission critical infrastructure rather than new construction allows us to address a large and underserved market with significant growth opportunities to deliver consistently strong results across economic cycles.”

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

• Total revenue was $122.2 million, a decrease of 2.1% from $124.9 million. ODR segment revenue of $82.8 million increased by $24.0 million, or 40.8%, while GCR revenue decreased by $26.6 million, or 40.3%. 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 ACME and Industrial Air transactions. These entities were not acquired entities for the three months ended June 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 $33.5 million, compared to $28.5 million. ODR gross profit increased $8.1 million, or 47.1%, due to the combination of an increase in revenue and higher segment margins of 30.6% versus 29.3% driven by contract mix. GCR gross profit decreased $3.1 million, or 27.7%, primarily due to lower revenue despite higher margins of 20.6% compared to 17.1% in the prior period. The total gross profit percentage increased from 22.8% to 27.4%, mainly driven by the mix of higher margin ODR segment work, better quality and margin work within the GCR segment, and the ACME and Industrial Air transactions.

• Selling, general and administrative (“SG&A”) expenses increased by approximately $2.8 million, to $23.2 million, compared to $20.4 million. The majority of the increase in SG&A expense was primarily due to approximately $1.5 million of collective SG&A related expenses incurred within the ACME and Industrial Air entities and a $1.7 million increase in payroll related expenses. SG&A expense also increased due to an increase in stock-based compensation expenses and travel and entertainment expenses, partly offset by a $0.6 million decrease in professional services fees. As a percent of revenue, SG&A expenses were 19.0%, up from 16.3% in the prior period.

• Interest expense was $0.4 million during the current quarter compared to $0.5 million, which was the result of a lower overall outstanding debt balance period-over-period.

• Interest income was $0.5 million during the current quarter compared to $0.2 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 $6.0 million as compared to $5.3 million, an increase of 12.1%. Diluted income per share was $0.50 as compared to $0.46 in the prior period. Adjusted EBITDA was $13.8 million as compared to $11.9 million in the prior period, an increase of 16.0%.

• Net cash provided by operating activities of $16.5 million compared to $16.9 million in the prior period.

Balance Sheet

At June 30, 2024, cash and cash equivalents were $59.5 million. Current assets were $213.3 million and current liabilities were $130.6 million at June 30, 2024, representing a current ratio of 1.63x compared to 1.50x at December 31, 2023. Working capital was $82.7 million at June 30, 2024, an increase of $10.9 million from December 31, 2023. At June 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

$515 million - $535 million

$510 million - $530 million

Adjusted EBITDA

$55 million - $58 million

$51 million - $55 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, August 7, 2024

Time:

9:00 a.m. Eastern Time

Participant Dial-In Numbers:

Domestic callers:

(866) 682-6100

International callers:

(862) 298-0702

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=sn4WF3MB. 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 1,200 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

June 30,

 

Six Months Ended

June 30,

(in thousands, except share and per share data)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

$

122,235

 

 

$

124,882

 

 

$

241,211

 

 

$

245,891

 

Cost of revenue

 

 

88,727

 

 

 

96,369

 

 

 

176,615

 

 

 

191,151

 

Gross profit

 

 

33,508

 

 

 

28,513

 

 

 

64,596

 

 

 

54,740

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

23,176

 

 

 

20,416

 

 

 

46,052

 

 

 

41,466

 

Change in fair value of contingent consideration

 

 

1,111

 

 

 

162

 

 

 

1,734

 

 

 

303

 

Amortization of intangibles

 

 

1,031

 

 

 

383

 

 

 

2,088

 

 

 

766

 

Total operating expenses

 

 

25,318

 

 

 

20,961

 

 

 

49,874

 

 

 

42,535

 

Operating income

 

 

8,190

 

 

 

7,552

 

 

 

14,722

 

 

 

12,205

 

Other income (expenses):

 

 

 

 

 

 

 

 

Interest expense

 

 

(432

)

 

 

(511

)

 

 

(907

)

 

 

(1,178

)

Interest income

 

 

546

 

 

 

247

 

 

 

1,108

 

 

 

247

 

Gain (loss) on disposition of property and equipment

 

 

66

 

 

 

175

 

 

 

557

 

 

 

(40

)

Loss on early debt extinguishment

 

 

—

 

 

 

(311

)

 

 

—

 

 

 

(311

)

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

 

 

(12

)

 

 

193

 

 

 

137

 

 

 

37

 

Total other income (expenses)

 

 

168

 

 

 

(207

)

 

 

895

 

 

 

(1,245

)

Income before income taxes

 

 

8,358

 

 

 

7,345

 

 

 

15,617

 

 

 

10,960

 

Income tax provision

 

 

2,395

 

 

 

2,025

 

 

 

2,068

 

 

 

2,647

 

Net income

 

$

5,963

 

 

$

5,320

 

 

$

13,549

 

 

$

8,313

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (“EPS”)

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.53

 

 

$

0.50

 

 

$

1.21

 

 

$

0.79

 

Diluted

 

$

0.50

 

 

$

0.46

 

 

$

1.13

 

 

$

0.73

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

11,268,465

 

 

 

10,644,423

 

 

 

11,214,157

 

 

 

10,560,381

 

Diluted

 

 

11,966,917

 

 

 

11,507,311

 

 

 

11,974,133

 

 

 

11,336,474

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Balance Sheets (Unaudited)

 

(in thousands, except share and per share data)

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

59,534

 

 

$

59,833

 

Restricted cash

 

65

 

 

 

65

 

Accounts receivable (net of allowance for credit losses of $357 and $292 as of June 30, 2024 and December 31, 2023, respectively)

 

97,168

 

 

 

97,755

 

Contract assets

 

47,975

 

 

 

51,690

 

Income tax receivable

 

601

 

 

 

—

 

Other current assets

 

7,946

 

 

 

7,657

 

Total current assets

 

213,289

 

 

 

217,000

 

 

 

 

 

Property and equipment, net

 

24,731

 

 

 

20,830

 

Intangible assets, net

 

22,970

 

 

 

24,999

 

Goodwill

 

16,433

 

 

 

16,374

 

Operating lease right-of-use assets

 

20,780

 

 

 

19,727

 

Deferred tax asset

 

5,286

 

 

 

5,179

 

Other assets

 

454

 

 

 

330

 

Total assets

$

303,943

 

 

$

304,439

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

2,531

 

 

$

2,680

 

Current operating lease liabilities

 

3,824

 

 

 

3,627

 

Accounts payable, including retainage

 

53,311

 

 

 

65,268

 

Contract liabilities

 

46,461

 

 

 

42,160

 

Accrued income taxes

 

181

 

 

 

446

 

Accrued expenses and other current liabilities

 

24,270

 

 

 

30,967

 

Total current liabilities

 

130,578

 

 

 

145,148

 

Long-term debt

 

19,659

 

 

 

19,631

 

Long-term operating lease liabilities

 

17,080

 

 

 

16,037

 

Other long-term liabilities

 

3,664

 

 

 

2,708

 

Total liabilities

 

170,981

 

 

 

183,524

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 11,449,652 and 11,183,076, respectively, and 11,270,000 and 11,003,424 outstanding, respectively

 

1

 

 

 

1

 

Additional paid-in capital

 

91,026

 

 

 

92,528

 

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

 

(2,000

)

 

 

(2,000

)

Retained earnings

 

43,935

 

 

 

30,386

 

Total stockholders’ equity

 

132,962

 

 

 

120,915

 

Total liabilities and stockholders’ equity

$

303,943

 

 

$

304,439

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

Six Months Ended

June 30,

(in thousands)

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net income

$

13,549

 

 

$

8,313

 

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

 

 

 

Depreciation and amortization

 

5,520

 

 

 

3,859

 

Provision for credit losses

 

90

 

 

 

116

 

Stock-based compensation expense

 

2,720

 

 

 

2,234

 

Noncash operating lease expense

 

2,089

 

 

 

1,882

 

Amortization of debt issuance costs

 

21

 

 

 

58

 

Deferred income tax provision

 

(107

)

 

 

(170

)

(Gain) loss on sale of property and equipment

 

(557

)

 

 

40

 

Loss on change in fair value of contingent consideration

 

1,734

 

 

 

303

 

Loss on early debt extinguishment

 

—

 

 

 

311

 

Gain on change in fair value of interest rate swap

 

(137

)

 

 

(37

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

496

 

 

 

37,096

 

Contract assets

 

3,715

 

 

 

2,029

 

Other current assets

 

(376

)

 

 

(1,861

)

Accounts payable, including retainage

 

(12,195

)

 

 

(21,747

)

Prepaid income taxes

 

(601

)

 

 

(719

)

Accrued taxes payable

 

(266

)

 

 

(383

)

Contract liabilities

 

4,301

 

 

 

(325

)

Operating lease liabilities

 

(1,961

)

 

 

(1,836

)

Accrued expenses and other current liabilities

 

(3,639

)

 

 

(1,806

)

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

 

(1,687

)

 

 

(1,224

)

Other long-term liabilities

 

(149

)

 

 

159

 

Net cash provided by operating activities

 

12,560

 

 

 

26,292

 

Cash flows from investing activities:

 

 

 

Proceeds from sale of property and equipment

 

598

 

 

 

275

 

Advances from joint ventures

 

7

 

 

 

—

 

Purchase of property and equipment

 

(5,836

)

 

 

(1,499

)

Net cash used in investing activities

 

(5,231

)

 

 

(1,224

)

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

 

(1,313

)

 

 

(1,776

)

Payments on finance leases

 

(1,407

)

 

 

(1,302

)

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

 

279

 

 

 

239

 

Net cash used in financing activities

 

(7,628

)

 

 

(15,188

)

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

 

(299

)

 

 

9,880

 

Cash, cash equivalents and restricted cash, beginning of period

 

59,898

 

 

 

36,114

 

Cash, cash equivalents and restricted cash, end of period

$

59,599

 

 

$

45,994

 

Supplemental disclosures of cash flow information

 

 

 

Noncash investing and financing transactions:

 

 

 

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

$

3,200

 

 

$

742

 

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

 

1,341

 

 

 

3,392

 

Right of use assets disposed or adjusted modifying finance lease liabilities

 

2

 

 

 

(30

)

Interest paid

 

918

 

 

 

1,181

 

Cash paid for income taxes

$

3,041

 

 

$

3,919

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

 

 

Three Months Ended

June 30,

 

Increase/(Decrease)

(in thousands, except for percentages)

2024

 

 

2023

 

 

$

 

%

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

ODR

$

82,754

 

67.7

%

 

$

58,780

 

47.1

%

 

$

23,974

 

 

40.8

%

GCR

 

39,481

 

32.3

%

 

 

66,102

 

52.9

%

 

 

(26,621

)

 

(40.3

)%

Total revenue

 

122,235

 

100.0

%

 

 

124,882

 

100.0

%

 

 

(2,647

)

 

(2.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

ODR(1)

 

25,362

 

30.6

%

 

 

17,241

 

29.3

%

 

 

8,121

 

 

47.1

%

GCR(2)

 

8,146

 

20.6

%

 

 

11,272

 

17.1

%

 

 

(3,126

)

 

(27.7

)%

Total gross profit

 

33,508

 

27.4

%

 

 

28,513

 

22.8

%

 

 

4,995

 

 

17.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative(3)

 

23,176

 

19.0

%

 

 

20,416

 

16.3

%

 

 

2,760

 

 

13.5

%

Change in fair value of contingent consideration

 

1,111

 

0.9

%

 

 

162

 

0.1

%

 

 

949

 

 

585.8

%

Amortization of intangibles

 

1,031

 

0.8

%

 

 

383

 

0.3

%

 

 

648

 

 

169.2

%

Total operating income

$

8,190

 

6.7

%

 

$

7,552

 

6.0

%

 

$

638

 

 

8.4

%

(1)

As a percentage of ODR revenue.

(2)

As a percentage of GCR revenue.

(3)

Included within selling, general and administrative expenses was $1.5 million and $1.1 million of stock-based compensation expense for the three months ended June 30, 2024 and 2023, respectively.

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

 

 

Six Months Ended

June 30,

 

Increase/(Decrease)

(in thousands, except for percentages)

2024

 

 

2023

 

 

$

 

%

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

ODR

$

157,010

 

65.1

%

 

$

117,498

 

47.8

%

 

$

39,512

 

 

33.6

%

GCR

 

84,201

 

34.9

%

 

 

128,393

 

52.2

%

 

 

(44,192

)

 

(34.4

)%

Total revenue

 

241,211

 

100.0

%

 

 

245,891

 

100.0

%

 

 

(4,680

)

 

(1.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

ODR(1)

 

47,523

 

30.3

%

 

 

33,150

 

28.2

%

 

 

14,373

 

 

43.4

%

GCR(2)

 

17,073

 

20.3

%

 

 

21,590

 

16.8

%

 

 

(4,517

)

 

(20.9

)%

Total gross profit

 

64,596

 

26.8

%

 

 

54,740

 

22.3

%

 

 

9,856

 

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative(3)

 

46,052

 

19.1

%

 

 

41,466

 

16.9

%

 

 

4,586

 

 

11.1

%

Change in fair value of contingent consideration

 

1,734

 

0.7

%

 

 

303

 

0.1

%

 

 

1,431

 

 

472.3

%

Amortization of intangibles

 

2,088

 

0.9

%

 

 

766

 

0.3

%

 

 

1,322

 

 

172.6

%

Total operating income

$

14,722

 

6.1

%

 

$

12,205

 

5.0

%

 

$

2,517

 

 

20.6

%

(1)

As a percentage of ODR revenue.

(2)

As a percentage of GCR revenue.

(3)

Included within selling, general and administrative expenses was $2.7 million and $2.2 million of stock-based compensation expense for the six months ended June 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

June 30,

 

Six Months Ended

June 30,

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income

$

5,963

 

 

$

5,320

 

 

$

13,549

 

 

$

8,313

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

2,808

 

 

 

1,937

 

 

 

5,520

 

 

 

3,859

 

Interest expense

 

432

 

 

 

511

 

 

 

907

 

 

 

1,178

 

Interest income

 

(546

)

 

 

(247

)

 

 

(1,108

)

 

 

(247

)

Non-cash stock-based compensation expense

 

1,471

 

 

 

1,101

 

 

 

2,720

 

 

 

2,234

 

Loss on early debt extinguishment

 

—

 

 

 

311

 

 

 

—

 

 

 

311

 

Change in fair value of interest rate swap

 

12

 

 

 

(193

)

 

 

(137

)

 

 

(37

)

CEO transition costs

 

—

 

 

 

147

 

 

 

—

 

 

 

958

 

Income tax provision

 

2,395

 

 

 

2,025

 

 

 

2,068

 

 

 

2,647

 

Acquisition and other transaction costs

 

21

 

 

 

299

 

 

 

51

 

 

 

299

 

Change in fair value of contingent consideration

 

1,111

 

 

 

162

 

 

 

1,734

 

 

 

303

 

Restructuring costs(1)

 

142

 

 

 

532

 

 

 

262

 

 

 

772

 

Adjusted EBITDA

$

13,809

 

 

$

11,905

 

 

$

25,566

 

 

$

20,590

 

 

 

 

 

 

 

 

 

Revenue

$

122,235

 

 

$

124,882

 

 

$

241,211

 

 

$

245,891

 

Adjusted EBITDA Margin

 

11.3

%

 

 

9.5

%

 

 

10.6

%

 

 

8.4

%

(1)

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806166988/en/

Investor Relations Financial Profiles, Inc. Julie Kegley LMB@finprofiles.com