Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or
“CPH”), a leading provider of concrete pumping and waste management
services in the U.S. and U.K., reported financial results for the
third quarter ended July 31, 2023.
Third Quarter Fiscal Year 2023 Highlights vs. Third
Quarter of Fiscal Year 2022 (where applicable)
|
● |
Revenue increased 16% to $120.7 million compared to $104.5
million. |
|
● |
Gross profit increased 18% to $49.5 million compared to $41.9
million. |
|
● |
Income from operations increased 38% to $19.5 million compared to
$14.1 million. |
|
● |
Net income was $10.3 million compared to $13.0 million. |
|
● |
Net income attributable to common shareholders was $9.9 million or
$0.18 per diluted share, compared to $12.5 million or $0.22 per
diluted share. |
|
|
|
● |
Net income included a $0.9 million ($0.01 per diluted share) gain
from the change in the fair value of warrants versus a $7.4 million
($0.12 per diluted share) gain in the prior year. |
|
● |
Adjusted EBITDA1 increased 16% to $34.9 million compared to $30.0
million, with Adjusted EBITDA margin1 of 28.9% compared to
28.8%. |
|
● |
Amounts
outstanding under debt agreements were $410.7 million with net
debt1 of $399.2 million. Total available liquidity at quarter end
was $195.5 million. |
|
● |
Leverage ratio2 at
quarter end was 3.2x. |
|
|
|
Management Commentary
“The growth we experienced in the first half of
the year accelerated in our record-setting third quarter, driven by
double-digit revenue growth in every segment of our business,” said
CPH CEO Bruce Young. “This was primarily driven by strong organic
growth, as well as the results from accretive acquisitions. By end
market, our business is also performing well, particularly as
demand for new residential housing has reaccelerated, and our
expanding U.S. footprint continued to allow us to win
infrastructure projects.
“Given the momentum in our business, we are
well-positioned to deliver a record-setting year in fiscal 2023. So
far this year we have continued to prioritize deleveraging, and we
are also on track to reduce our leverage ratio to 3.0x by fiscal
year end, which is ahead of our expectation. We believe the
combination of our diversified and resilient revenue mix, high
value service offering, and our opportunistic, accretive M&A
strategy, while strategically balancing our leverage, is the most
optimal path to continued shareholder value creation.
_____________________________1 Adjusted EBITDA,
Adjusted EBITDA margin and net debt are financial measures that are
not calculated in accordance with accounting principles generally
accepted in the United States of America (“GAAP”). See “Non-GAAP
Financial Measures” below for a discussion of the non-GAAP
financial measures used in this release and a reconciliation to
their most comparable GAAP measures. As of the first quarter of
fiscal 2023, adjusted EBITDA no longer includes an add-back for
director costs and public company expenses.
2 Leverage ratio defined as net debt divided by Adjusted EBITDA
over the trailing four quarters.
Third Quarter Fiscal Year 2023 Financial
Results
Revenue in the third quarter of fiscal year 2023
increased 16% to $120.7 million compared to $104.5 million in the
third quarter of fiscal year 2022. The increase was attributable to
strong growth across each of the Company’s segments as a result of
organic growth from higher volumes in certain regions coupled with
improved pricing, as well as the acquisition of Coastal Carolina
Pumping (Coastal) in August 2022. Revenue attributable to the
Coastal acquisition was $5.6 million in the third quarter of
2023.
Gross profit in the third quarter of fiscal year
2023 increased 18% to $49.5 million compared to $41.9 million in
the prior year quarter. Gross margin increased 90 basis points to
41.0% compared to 40.1% in the prior year quarter. The increase in
gross margin was primarily related to the strong revenue growth and
the easing of diesel fuel prices compared to the prior year
quarter, partially offset by inflationary pressures in labor
inflation.
General and administrative expenses in the third
quarter were $29.9 million compared to $27.8 million in the prior
year quarter due to higher labor costs of approximately $3.0
million as a result of additional headcount from recent
acquisitions. As a percentage of revenue, G&A costs were 24.8%
in the third quarter compared to 26.6% in the prior year
quarter.
During the three-month periods ended July 31,
2023 and 2022, the Company recognized gains of $0.9 million and
$7.4 million, respectively, on the fair value remeasurement of its
liability-classified warrants. The continued decline in the fair
value remeasurement of the public warrants for both periods is due
to the Company's share price being below the exercise price as the
warrants get closer to expiring in December 2023.
Net income in the third quarter of fiscal year
2023 was $10.3 million compared to $13.0 million in the third
quarter of fiscal year 2022. Net income attributable to common
shareholders in the third quarter of fiscal year 2023 was $9.9
million, or $0.18 per diluted share, compared to $12.5
million, or $0.22 per diluted share, in the prior year quarter.
Adjusted EBITDA in the third quarter of fiscal
year 2023 increased 16% to $34.9 million compared to $30.0 million
in the prior year quarter. Adjusted EBITDA margin increased to
28.9% compared to 28.8% in the prior year quarter.
Liquidity
On July 31, 2023, the Company had debt
outstanding of $410.7 million, net debt of $399.2 million and
total available liquidity of $195.5 million.
On June 1, 2023, the ABL Facility was amended
to, among other changes, (1) increase the maximum revolver
borrowings available to be drawn thereunder from $160.0
million to $225.0 million, (2) increase the letter of credit
sublimit from $10.5 million to $22.5 million and (3) extend the
maturity of the ABL Facility to the earlier of (a) June 1, 2028 and
(b) the date that is 180 days prior to (i) the final stated
maturity date of the Senior Notes or (ii) the date the Senior Notes
become due and payable. The ABL Facility also provides for an
uncommitted accordion feature under which the borrowers under the
ABL Facility can, subject to specified conditions, increase
the ABL Facility by up to an additional $75.0 million. The $65.0
million in incremental commitments were provided by JPMorgan Chase
Bank, N.A. and PNC Bank, N.A.
Segment Results
U.S. Concrete
Pumping. Revenue in the third quarter of fiscal year
2023 increased 13% to $87.3 million compared to $77.4 million in
the prior year quarter. The increase was due to organic volume
growth in the segment and revenue contribution in the third
quarter of 2023 from the Coastal acquisition. Net income in the
third quarter of fiscal year 2023 increased 25% to $3.5 million
compared to $2.8 million in the prior year quarter. Adjusted EBITDA
was $20.5 million in the third quarter of fiscal year 2023 compared
to $19.8 million in the prior year quarter.
U.K. Operations. Revenue in the
third quarter of fiscal year 2023 increased 20% to $17.3 million
compared to $14.4 million in the prior year quarter. Excluding the
impact from foreign currency translation, revenue was up 18%
year-over-year, due primarily to pricing improvements. Net income
in the third quarter of fiscal year 2023 improved to $1.6 million
compared to $0.4 million in the prior year quarter. Adjusted EBITDA
increased 41% to $5.6 million in the third quarter of fiscal year
2023 compared to $4.0 million in the prior year quarter.
U.S. Concrete Waste Management
Services. Revenue in the third quarter of fiscal year 2023
increased 29% to $16.5 million compared to $12.8 million in the
prior year quarter. The increase was due to organic growth and
pricing improvements. Net income in the third quarter of fiscal
year 2023 increased 100% to $4.0 million compared to $2.0 million
in the prior year quarter. Adjusted EBITDA in the third quarter of
fiscal year 2023 increased 44% to $8.2 million compared to $5.7
million in the prior year quarter.
Fiscal Year 2023 Outlook
The Company now expects fiscal year 2023 revenue of
approximately $440.0 million, Adjusted EBITDA of approximately
$125.0 million, and free cash flow3 of approximately $70.0
million.
_____________________3 Free cash flow is defined as Adjusted
EBITDA less net replacement capital expenditures less cash paid for
interest.
Conference Call
The Company will hold a conference call today at 5:00 p.m.
Eastern time to discuss its third quarter 2023 results.
Date: Thursday, September 7, 2023Time: 5:00 p.m. Eastern time
(3:00 p.m. Mountain time)Toll-free dial-in number:
1-877-407-9039International dial-in number:
1-201-689-8470Conference ID: 13739666
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Gateway Investor Relations at
1-949-574-3860.
The conference call will be broadcast live and available for
replay at
https://viavid.webcasts.com/starthere.jsp?ei=1622741&tp_key=80f2847994 and
via the investor relations section of the Company’s website at
www.concretepumpingholdings.com.
A replay of the conference call will be available after 8:00
p.m. Eastern time on the same day through September 14, 2023.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 13739666
About Concrete Pumping Holdings
Concrete Pumping Holdings is the leading
provider of concrete pumping services and concrete waste management
services in the fragmented U.S. and U.K. markets, primarily
operating under what we believe are the only established, national
brands in both geographies – Brundage-Bone for concrete pumping in
the U.S., Camfaud in the U.K., and Eco-Pan for waste management
services in both the U.S. and U.K. The Company’s large fleet of
specialized pumping equipment and trained operators position it to
deliver concrete placement solutions that facilitate labor cost
savings to customers, shorten concrete placement times, enhance
worksite safety and improve construction quality. Highly
complementary to its core concrete pumping service, Eco-Pan seeks
to provide a full-service, cost-effective, regulatory-compliant
solution to manage environmental issues caused by concrete washout.
As of July 31, 2023, the Company provided concrete pumping services
in the U.S. from a footprint of approximately 100 branch locations
across approximately 20 states, concrete pumping services in the
U.K. from approximately 30 branch locations, and route-based
concrete waste management services from 19 operating locations in
the U.S. and 1 shared location in the U.K. For more information,
please visit www.concretepumpingholdings.com or the
Company’s brand websites
at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.
Forward‐Looking
Statements
This press release includes “forward-looking
statements” within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995. The Company’s
actual results may differ from expectations, estimates and
projections and consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” “outlook” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, the Company’s expectations with respect to future
performance, including the Company's fiscal year 2023 outlook.
These forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from expected results. Most of these factors are outside the
Company’s control and are difficult to predict. Factors that may
cause such differences include, but are not limited to: the adverse
impact of recent inflationary pressures, global economic conditions
and developments related to these conditions, such as fluctuations
in fuel costs and the ongoing war in Ukraine and the COVID-19
pandemic, on our business; the outcome of any legal proceedings or
demand letters that may be instituted against or sent to the
Company or its subsidiaries; the ability of the Company to grow and
manage growth profitably and retain its key employees; the ability
to complete targeted acquisitions and to realize the expected
benefits from completed acquisitions; changes in applicable laws or
regulations; the possibility that the Company may be adversely
affected by other economic, business, and/or competitive factors;
and other risks and uncertainties indicated from time to time in
the Company’s filings with the Securities and Exchange Commission,
including the risk factors in the Company's latest Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q and Form 10-Q/A. The
Company cautions that the foregoing list of factors is not
exclusive. The Company cautions readers not to place undue reliance
upon any forward-looking statements, which speak only as of the
date made. The Company does not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
Non-GAAP Financial Measures
This press release presents Adjusted EBITDA, Adjusted EBITDA
margin, net debt and free cash flow, all of which are important
financial measures for the Company, but are not financial measures
defined by GAAP.
Adjusted EBITDA is a financial measure that is
not calculated in accordance with Generally Accepted Accounting
Principles in the United States (“GAAP”). The Company believes that
this non-GAAP financial measure provides useful information to
management and investors regarding certain financial and business
trends relating to the Company’s financial condition and results of
operations. The Company’s management also uses this non-GAAP
financial measure to compare the Company’s performance to that of
prior periods for trend analyses, determining incentive
compensation and for budgeting and planning purposes. Adjusted
EBITDA is also used in quarterly and annual financial reports
prepared for the Company’s board of directors. The Company believes
that this non-GAAP measure provides an additional tool for
investors to use in evaluating the Company’s ongoing operating
results and in comparing the Company’s financial results with
competitors who also present similar non-GAAP financial
measures.
Adjusted EBITDA is defined as net income
calculated in accordance with GAAP plus interest expense, income
taxes, depreciation, amortization, transaction expenses, loss on
debt extinguishment, stock-based compensation, other income, net,
and other adjustments. Other adjustments includes the adjustment
for warrant liabilities revaluation, non-recurring expenses and
non-cash currency gains/losses. As of the first quarter of fiscal
2023, we have modified the method in which Adjusted EBITDA is
calculated by no longer including an add-back for director costs
and public company expenses. Adjusted EBITDA in the three and nine
months ended July 31, 2022 is recast by $0.6 million and $1.9
million, respectively, for these expenses to reflect this change.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by
total revenue for the period presented. See below for a
reconciliation of Adjusted EBITDA to net income (loss) calculated
in accordance with GAAP.
Net debt is calculated as all amounts
outstanding under debt agreements (currently this includes the
Company’s term loan and revolving line of credit balances,
excluding any offsets for capitalized deferred financing costs)
measured in accordance with GAAP less cash. Cash is subtracted from
the GAAP measure because it could be used to reduce the Company’s
debt obligations. A limitation associated with using net debt is
that it subtracts cash and therefore may imply that there is less
Company debt than the most comparable GAAP measure indicates. CPH
believes this non-GAAP measure provides useful information to
management and investors in order to monitor the Company’s leverage
and evaluate the Company’s consolidated balance sheet. See
“Non-GAAP Measures (Reconciliation of Net Debt)” below for a
reconciliation of Net Debt to amounts outstanding under debt
agreements calculated in accordance with GAAP.
Free cash flow is defined as Adjusted EBITDA
less net replacement capital expenditures and cash paid for
interest. This measure is not a substitute for cash flow from
operations and does not represent the residual cash flow available
for discretionary expenditures, since certain non-discretionary
expenditures, such as debt servicing payments, are not deducted
from the measure. CPH believes this non-GAAP measure provides
useful information to management and investors in order to monitor
and evaluate the cash flow yield of the business.
The leverage ratio is defined as the ratio of
net debt to Adjusted EBITDA for the trailing four quarters. The
Company believes its leverage ratio measures its ability to service
its debt and its ability to make capital expenditures.
Additionally, the leverage ratio is a standard measurement used by
investors to gauge the creditworthiness of an institution.
The financial statement tables that accompany
this press release include a reconciliation of Adjusted EBITDA and
net debt to the applicable most comparable U.S. GAAP financial
measure. However, the Company has not reconciled the
forward-looking Adjusted EBITDA guidance range and free cash flow
range included in this press release to the most directly
comparable forward-looking GAAP measures because this cannot be
done without unreasonable effort due to the lack of predictability
regarding the various reconciling items such as provision for
income taxes and depreciation and
amortization.
Current and prospective investors should review
the Company’s audited annual and unaudited interim financial
statements, which are filed with the U.S. Securities and Exchange
Commission, and not rely on any single financial measure to
evaluate the Company’s business. Other companies may calculate
Adjusted EBITDA, net debt and free cash flow differently and
therefore these measures may not be directly comparable to
similarly titled measures of other companies.
Contact:
Company:Iain HumphriesChief Financial
Officer1-303-289-7497 |
Investor Relations:Gateway Group, Inc.Cody
Slach1-949-574-3860BBCP@gateway-grp.com |
Concrete Pumping
Holdings, Inc. |
Consolidated Balance
Sheets |
|
As of July 31, |
|
|
As of October 31, |
|
(in thousands, except per
share amounts) |
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
11,532 |
|
|
$ |
7,482 |
|
Trade receivables, net |
|
67,201 |
|
|
|
62,882 |
|
Inventory, net |
|
6,672 |
|
|
|
5,532 |
|
Income taxes receivable |
|
- |
|
|
|
485 |
|
Prepaid expenses and other current assets |
|
12,496 |
|
|
|
5,175 |
|
Total current assets |
|
97,901 |
|
|
|
81,556 |
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
427,084 |
|
|
|
419,377 |
|
Intangible assets, net |
|
125,363 |
|
|
|
137,754 |
|
Goodwill |
|
222,998 |
|
|
|
220,245 |
|
Right-of-use operating lease
assets |
|
25,487 |
|
|
|
24,833 |
|
Other non-current assets |
|
13,295 |
|
|
|
2,026 |
|
Deferred financing costs |
|
1,878 |
|
|
|
1,698 |
|
Total assets |
$ |
914,006 |
|
|
$ |
887,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Revolving loan |
$ |
35,699 |
|
|
$ |
52,133 |
|
Operating lease obligations, current portion |
|
4,649 |
|
|
|
4,001 |
|
Finance lease obligations, current portion |
|
114 |
|
|
|
109 |
|
Accounts payable |
|
7,247 |
|
|
|
8,362 |
|
Accrued payroll and payroll expenses |
|
15,190 |
|
|
|
13,341 |
|
Accrued expenses and other current liabilities |
|
36,254 |
|
|
|
32,156 |
|
Income taxes payable |
|
737 |
|
|
|
178 |
|
Warrant liability, current portion |
|
391 |
|
|
|
- |
|
Total current liabilities |
|
100,281 |
|
|
|
110,280 |
|
|
|
|
|
|
|
|
|
Long term debt, net of
discount for deferred financing costs |
|
371,520 |
|
|
|
370,476 |
|
Operating lease obligations,
non-current |
|
21,177 |
|
|
|
20,984 |
|
Finance lease obligations,
non-current |
|
82 |
|
|
|
169 |
|
Deferred income taxes |
|
79,360 |
|
|
|
74,223 |
|
Other liabilities,
non-current |
|
12,836 |
|
|
|
- |
|
Warrant liability,
non-current |
|
- |
|
|
|
7,030 |
|
Total liabilities |
|
585,256 |
|
|
|
583,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zero-dividend convertible
perpetual preferred stock, $0.0001 par value, 2,450,980 shares
issued and outstanding as of July 31, 2023 and October 31,
2022 |
|
25,000 |
|
|
|
25,000 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 500,000,000 shares authorized,
54,806,913 and 56,226,191 issued and outstanding as of July 31,
2023 and October 31, 2022, respectively |
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
382,533 |
|
|
|
379,395 |
|
Treasury stock |
|
(14,288 |
) |
|
|
(4,609 |
) |
Accumulated other comprehensive loss |
|
(663 |
) |
|
|
(9,228 |
) |
Accumulated deficit |
|
(63,838 |
) |
|
|
(86,237 |
) |
Total stockholders' equity |
|
303,750 |
|
|
|
279,327 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
914,006 |
|
|
$ |
887,489 |
|
|
|
|
|
|
|
|
|
Concrete Pumping
Holdings, Inc. |
Consolidated
Statements of Operations |
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
(in thousands, except share
and per share amounts) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
120,671 |
|
|
$ |
104,469 |
|
|
$ |
322,037 |
|
|
$ |
286,398 |
|
Cost of operations |
|
71,187 |
|
|
|
62,535 |
|
|
|
192,625 |
|
|
|
171,400 |
|
Gross profit |
|
49,484 |
|
|
|
41,934 |
|
|
|
129,412 |
|
|
|
114,998 |
|
Gross margin |
|
41.0 |
% |
|
|
40.1 |
% |
|
|
40.2 |
% |
|
|
40.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
expenses |
|
29,937 |
|
|
|
27,847 |
|
|
|
87,236 |
|
|
|
83,156 |
|
Income from operations |
|
19,547 |
|
|
|
14,087 |
|
|
|
42,176 |
|
|
|
31,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(7,066 |
) |
|
|
(6,517 |
) |
|
|
(21,285 |
) |
|
|
(19,126 |
) |
Change in fair value of
warrant liabilities |
|
911 |
|
|
|
7,420 |
|
|
|
6,639 |
|
|
|
9,894 |
|
Other income, net |
|
262 |
|
|
|
16 |
|
|
|
296 |
|
|
|
69 |
|
Income before income taxes |
|
13,654 |
|
|
|
15,006 |
|
|
|
27,826 |
|
|
|
22,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
3,318 |
|
|
|
2,030 |
|
|
|
5,427 |
|
|
|
2,535 |
|
Net income |
|
10,336 |
|
|
|
12,976 |
|
|
|
22,399 |
|
|
|
20,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less preferred shares
dividends |
|
(441 |
) |
|
|
(441 |
) |
|
|
(1,309 |
) |
|
|
(1,309 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income available to common shareholders |
$ |
9,895 |
|
|
$ |
12,535 |
|
|
$ |
21,090 |
|
|
$ |
18,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
53,198,637 |
|
|
|
54,012,404 |
|
|
|
53,377,157 |
|
|
|
53,859,874 |
|
Diluted |
|
54,104,738 |
|
|
|
57,286,563 |
|
|
|
54,262,940 |
|
|
|
54,772,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.18 |
|
|
$ |
0.22 |
|
|
$ |
0.38 |
|
|
$ |
0.33 |
|
Diluted |
$ |
0.18 |
|
|
$ |
0.22 |
|
|
$ |
0.38 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete Pumping
Holdings, Inc. |
Consolidated
Statements of Cash Flows |
|
For the Nine Months Ended July 31, |
|
(in thousands, except per
share amounts) |
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
22,399 |
|
|
$ |
20,144 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Non-cash operating lease expense |
|
3,526 |
|
|
|
1,786 |
|
Foreign currency adjustments |
|
(1,421 |
) |
|
|
- |
|
Depreciation |
|
29,541 |
|
|
|
25,547 |
|
Deferred income taxes |
|
4,140 |
|
|
|
2,210 |
|
Amortization of deferred financing costs |
|
1,414 |
|
|
|
1,374 |
|
Amortization of intangible assets |
|
14,336 |
|
|
|
16,958 |
|
Stock-based compensation expense |
|
3,138 |
|
|
|
4,164 |
|
Change in fair value of warrant liabilities |
|
(6,639 |
) |
|
|
(9,894 |
) |
Net gain on the sale of property, plant and equipment |
|
(1,472 |
) |
|
|
(1,460 |
) |
Provision for bad debt |
|
(93 |
) |
|
|
239 |
|
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Trade receivables, net |
|
(3,199 |
) |
|
|
(11,024 |
) |
Inventory |
|
(970 |
) |
|
|
(265 |
) |
Prepaid expenses and other assets |
|
(875 |
) |
|
|
(1,239 |
) |
Accounts payable |
|
(2,050 |
) |
|
|
(2,311 |
) |
Accrued payroll, accrued expenses and other liabilities |
|
4,457 |
|
|
|
7,498 |
|
Net cash provided by operating activities |
|
66,232 |
|
|
|
53,727 |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(43,166 |
) |
|
|
(80,967 |
) |
Proceeds from sale of property, plant and equipment |
|
8,043 |
|
|
|
6,197 |
|
Purchases of intangible assets |
|
(800 |
) |
|
|
(1,450 |
) |
Net cash used in investing activities |
|
(35,923 |
) |
|
|
(76,220 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds on revolving loan |
|
239,911 |
|
|
|
252,925 |
|
Payments on revolving loan |
|
(256,345 |
) |
|
|
(236,856 |
) |
Payment of debt issuance costs |
|
(550 |
) |
|
|
(290 |
) |
Purchase of treasury stock |
|
(9,679 |
) |
|
|
(1,394 |
) |
Other financing activities |
|
(81 |
) |
|
|
(31 |
) |
Net cash provided by (used in) financing
activities |
|
(26,744 |
) |
|
|
14,354 |
|
Effect of foreign currency exchange rate changes on cash |
|
485 |
|
|
|
1,286 |
|
Net increase (decrease) in cash and cash
equivalents |
|
4,050 |
|
|
|
(6,853 |
) |
Cash and cash
equivalents: |
|
|
|
|
|
|
|
Beginning of period |
|
7,482 |
|
|
|
9,298 |
|
End of period |
$ |
11,532 |
|
|
$ |
2,445 |
|
|
|
|
|
|
|
|
|
Concrete Pumping
Holdings, Inc. |
Segment
Revenue |
|
Three Months Ended July 31, |
|
|
Change |
|
(in thousands) |
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
U.S. Concrete Pumping |
|
87,323 |
|
|
$ |
77,352 |
|
|
$ |
9,971 |
|
|
|
12.9 |
% |
U.K. Operations |
|
17,260 |
|
|
|
14,417 |
|
|
|
2,843 |
|
|
|
19.7 |
% |
U.S. Concrete Waste Management
Services |
|
16,505 |
|
|
|
12,813 |
|
|
|
3,692 |
|
|
|
28.8 |
% |
Corporate |
|
625 |
|
|
|
625 |
|
|
|
- |
|
|
|
0.0 |
% |
Intersegment |
|
(1,042 |
) |
|
|
(738 |
) |
|
|
(304 |
) |
|
|
41.2 |
% |
Total Revenue |
$ |
120,671 |
|
|
$ |
104,469 |
|
|
$ |
16,202 |
|
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended July 31, |
|
|
Change |
|
(in thousands) |
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
U.S. Concrete Pumping |
$ |
232,896 |
|
|
$ |
212,189 |
|
|
$ |
20,707 |
|
|
|
9.8 |
% |
U.K. Operations |
|
45,207 |
|
|
|
39,980 |
|
|
|
5,227 |
|
|
|
13.1 |
% |
U.S. Concrete Waste Management
Services |
|
44,445 |
|
|
|
34,551 |
|
|
|
9,894 |
|
|
|
28.6 |
% |
Corporate |
|
1,875 |
|
|
|
1,875 |
|
|
|
- |
|
|
|
0.0 |
% |
Intersegment |
|
(2,386 |
) |
|
|
(2,197 |
) |
|
|
(189 |
) |
|
|
8.6 |
% |
Total Revenue |
$ |
322,037 |
|
|
$ |
286,398 |
|
|
$ |
35,639 |
|
|
|
12.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete Pumping
Holdings, Inc. |
Segment Adjusted
EBITDA and Net Income |
|
Net Income |
|
|
Adjusted EBITDA |
|
|
Three Months Ended July 31, |
|
|
Three Months Ended July 31, |
|
|
|
|
|
|
|
|
|
(in thousands, except
percentages) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
$ Change |
|
|
% Change |
|
U.S. Concrete Pumping |
$ |
3,517 |
|
|
$ |
2,812 |
|
|
$ |
20,535 |
|
|
$ |
19,776 |
|
|
$ |
759 |
|
|
|
3.8 |
% |
U.K. Operations |
|
1,616 |
|
|
|
441 |
|
|
|
5,566 |
|
|
|
3,955 |
|
|
|
1,611 |
|
|
|
40.7 |
% |
U.S. Concrete Waste Management
Services |
|
3,986 |
|
|
|
2,010 |
|
|
|
8,190 |
|
|
|
5,681 |
|
|
|
2,509 |
|
|
|
44.2 |
% |
Corporate |
|
1,217 |
|
|
|
7,713 |
|
|
|
625 |
|
|
|
625 |
|
|
|
- |
|
|
|
0.0 |
% |
Total |
$ |
10,336 |
|
|
$ |
12,976 |
|
|
$ |
34,916 |
|
|
$ |
30,037 |
|
|
$ |
4,879 |
|
|
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
Adjusted EBITDA |
|
|
Nine Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
|
|
|
|
|
|
|
|
(in thousands, except
percentages) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
$ Change |
|
|
% Change |
|
U.S. Concrete Pumping |
$ |
2,867 |
|
|
$ |
3,772 |
|
|
$ |
52,363 |
|
|
$ |
52,285 |
|
|
$ |
78 |
|
|
|
0.1 |
% |
U.K. Operations |
|
2,449 |
|
|
|
358 |
|
|
|
13,349 |
|
|
|
11,017 |
|
|
|
2,332 |
|
|
|
21.2 |
% |
U.S. Concrete Waste Management
Services |
|
9,526 |
|
|
|
5,205 |
|
|
|
21,208 |
|
|
|
15,233 |
|
|
|
5,975 |
|
|
|
39.2 |
% |
Corporate |
|
7,557 |
|
|
|
10,809 |
|
|
|
1,875 |
|
|
|
1,875 |
|
|
|
- |
|
|
|
0.0 |
% |
Total |
$ |
22,399 |
|
|
$ |
20,144 |
|
|
$ |
88,795 |
|
|
$ |
80,410 |
|
|
$ |
8,385 |
|
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete Pumping
Holdings, Inc. |
Quarterly Financial
Performance |
(dollars in millions) |
Revenue |
|
|
Net Income |
|
|
Adjusted EBITDA1 |
|
|
Capital Expenditures2 |
|
|
Adjusted EBITDA less Capital Expenditures |
|
|
Earnings Per Diluted Share |
|
Q1 2022 |
$ |
85 |
|
|
$ |
1 |
|
|
$ |
23 |
|
|
$ |
35 |
|
|
$ |
(12 |
) |
|
$ |
0.01 |
|
Q2 2022 |
$ |
96 |
|
|
$ |
6 |
|
|
$ |
27 |
|
|
$ |
22 |
|
|
$ |
5 |
|
|
$ |
0.10 |
|
Q3 2022 |
$ |
105 |
|
|
$ |
13 |
|
|
$ |
30 |
|
|
$ |
19 |
|
|
$ |
11 |
|
|
$ |
0.22 |
|
Q4 2022 |
$ |
115 |
|
|
$ |
9 |
|
|
$ |
36 |
|
|
$ |
48 |
|
|
$ |
(12 |
) |
|
$ |
0.14 |
|
Q1 2023 |
$ |
94 |
|
|
$ |
6 |
|
|
$ |
25 |
|
|
$ |
15 |
|
|
$ |
10 |
|
|
$ |
0.11 |
|
Q2 2023 |
$ |
108 |
|
|
$ |
6 |
|
|
$ |
29 |
|
|
$ |
16 |
|
|
$ |
13 |
|
|
$ |
0.09 |
|
Q3 2023 |
$ |
120 |
|
|
$ |
10 |
|
|
$ |
35 |
|
|
$ |
5 |
|
|
$ |
30 |
|
|
$ |
0.18 |
|
1 Adjusted EBITDA is a financial measure that is not calculated
in accordance with Generally Accepted Accounting Principles in the
United States (“GAAP”). See “Non-GAAP Financial Measures” for a
discussion of the definition of the measure and below for a
reconciliation of the current period such measure to its most
comparable GAAP measure.2 Information on M&A or growth
investments included in capital expenditures have been included for
relevant quarters below:*Q1 2022 capex includes approximately $19
million M&A and $2 million growth investment.*Q2 2022 capex
includes approximately $11 million M&A and $5 million growth
investment.*Q3 2022 capex includes approximately $7 million growth
investment.*Q4 2022 capex includes approximately $31 million
M&A and $13 million growth investment.*Q1 2023 capex includes
approximately $3 million growth investment.*Q2 2023 capex includes
approximately $6 million M&A and $1 million growth
investment.*Q3 2023 capex includes approximately $1 million growth
investment.
Concrete Pumping
Holdings, Inc. |
Reconciliation of Net
Income to Reported EBITDA to Adjusted EBITDA |
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
(dollars in thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
10,336 |
|
|
$ |
12,976 |
|
|
$ |
22,399 |
|
|
$ |
20,144 |
|
Interest expense, net |
|
7,066 |
|
|
|
6,517 |
|
|
|
21,285 |
|
|
|
19,126 |
|
Income tax expense |
|
3,318 |
|
|
|
2,030 |
|
|
|
5,427 |
|
|
|
2,535 |
|
Depreciation and
amortization |
|
14,707 |
|
|
|
14,190 |
|
|
|
43,877 |
|
|
|
42,505 |
|
EBITDA |
|
35,427 |
|
|
|
35,713 |
|
|
|
92,988 |
|
|
|
84,310 |
|
Transaction expenses |
|
5 |
|
|
|
20 |
|
|
|
32 |
|
|
|
59 |
|
Stock based compensation |
|
934 |
|
|
|
1,333 |
|
|
|
3,138 |
|
|
|
4,164 |
|
Change in fair value of
warrant liabilities |
|
(911 |
) |
|
|
(7,420 |
) |
|
|
(6,639 |
) |
|
|
(9,894 |
) |
Other income, net |
|
(262 |
) |
|
|
(16 |
) |
|
|
(296 |
) |
|
|
(69 |
) |
Other adjustments(1) |
|
(277 |
) |
|
|
407 |
|
|
|
(428 |
) |
|
|
1,840 |
|
Adjusted EBITDA |
$ |
34,916 |
|
|
$ |
30,037 |
|
|
$ |
88,795 |
|
|
$ |
80,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Concrete
Pumping |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,517 |
|
|
$ |
2,812 |
|
|
$ |
2,867 |
|
|
$ |
3,772 |
|
Interest expense, net |
|
6,337 |
|
|
|
5,795 |
|
|
|
19,163 |
|
|
|
16,879 |
|
Income tax expense |
|
1,318 |
|
|
|
961 |
|
|
|
1,026 |
|
|
|
258 |
|
Depreciation and
amortization |
|
10,498 |
|
|
|
9,927 |
|
|
|
31,464 |
|
|
|
29,615 |
|
EBITDA |
|
21,670 |
|
|
|
19,495 |
|
|
|
54,520 |
|
|
|
50,524 |
|
Transaction expenses |
|
5 |
|
|
|
20 |
|
|
|
32 |
|
|
|
59 |
|
Stock based compensation |
|
934 |
|
|
|
1,333 |
|
|
|
3,138 |
|
|
|
4,164 |
|
Other income, net |
|
(257 |
) |
|
|
(6 |
) |
|
|
(273 |
) |
|
|
(43 |
) |
Other adjustments(1) |
|
(1,817 |
) |
|
|
(1,066 |
) |
|
|
(5,054 |
) |
|
|
(2,419 |
) |
Adjusted EBITDA |
$ |
20,535 |
|
|
$ |
19,776 |
|
|
$ |
52,363 |
|
|
$ |
52,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,616 |
|
|
$ |
441 |
|
|
$ |
2,449 |
|
|
$ |
358 |
|
Interest expense, net |
|
729 |
|
|
|
722 |
|
|
|
2,122 |
|
|
|
2,247 |
|
Income tax expense |
|
545 |
|
|
|
153 |
|
|
|
831 |
|
|
|
122 |
|
Depreciation and
amortization |
|
1,879 |
|
|
|
1,881 |
|
|
|
5,555 |
|
|
|
5,892 |
|
EBITDA |
|
4,769 |
|
|
|
3,197 |
|
|
|
10,957 |
|
|
|
8,619 |
|
Other income, net |
|
(6 |
) |
|
|
(5 |
) |
|
|
(23 |
) |
|
|
(11 |
) |
Other adjustments |
|
803 |
|
|
|
763 |
|
|
|
2,415 |
|
|
|
2,409 |
|
Adjusted EBITDA |
$ |
5,566 |
|
|
$ |
3,955 |
|
|
$ |
13,349 |
|
|
$ |
11,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other adjustments include the adjustment for warrant
liabilities revaluation, restructuring costs, non-recurring
expenses and non-cash currency gains/losses. As of the first
quarter of fiscal 2023, we have modified the method in which
adjusted EBITDA is calculated by no longer including an add-back
for director costs and public company expenses. Adjusted EBITDA in
the three and nine months ended July 31, 2022 is recast by
$0.6 million and $1.9 million, respectively, for these expenses to
reflect this change.
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
(dollars in thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
U.S. Concrete Waste Management Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,986 |
|
|
$ |
2,010 |
|
|
$ |
9,526 |
|
|
$ |
5,205 |
|
Income tax expense |
|
1,352 |
|
|
|
796 |
|
|
|
3,257 |
|
|
|
1,832 |
|
Depreciation and
amortization |
|
2,114 |
|
|
|
2,170 |
|
|
|
6,214 |
|
|
|
6,361 |
|
EBITDA |
|
7,452 |
|
|
|
4,976 |
|
|
|
18,997 |
|
|
|
13,398 |
|
Other income, net |
|
1 |
|
|
|
(5 |
) |
|
|
- |
|
|
|
(15 |
) |
Other adjustments |
|
737 |
|
|
|
710 |
|
|
|
2,211 |
|
|
|
1,850 |
|
Adjusted EBITDA |
$ |
8,190 |
|
|
$ |
5,681 |
|
|
$ |
21,208 |
|
|
$ |
15,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,217 |
|
|
$ |
7,713 |
|
|
$ |
7,557 |
|
|
$ |
10,809 |
|
Income tax expense |
|
103 |
|
|
|
120 |
|
|
|
313 |
|
|
|
323 |
|
Depreciation and
amortization |
|
216 |
|
|
|
212 |
|
|
|
644 |
|
|
|
637 |
|
EBITDA |
|
1,536 |
|
|
|
8,045 |
|
|
|
8,514 |
|
|
|
11,769 |
|
Change in fair value of
warrant liabilities |
|
(911 |
) |
|
|
(7,420 |
) |
|
|
(6,639 |
) |
|
|
(9,894 |
) |
Adjusted EBITDA |
$ |
625 |
|
|
$ |
625 |
|
|
$ |
1,875 |
|
|
$ |
1,875 |
|
Concrete Pumping
Holdings, Inc. |
Reconciliation of Net
Debt |
|
July 31, |
|
|
October 31, |
|
|
January 31, |
|
|
April 30, |
|
|
July 31, |
|
(in thousands) |
2022 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
Senior Notes |
|
375,000 |
|
|
|
375,000 |
|
|
|
375,000 |
|
|
|
375,000 |
|
|
|
375,000 |
|
Revolving loan draws
outstanding |
|
16,884 |
|
|
|
52,133 |
|
|
|
50,247 |
|
|
|
60,947 |
|
|
|
35,699 |
|
Less: Cash |
|
(2,445 |
) |
|
|
(7,482 |
) |
|
|
(4,049 |
) |
|
|
(6,643 |
) |
|
|
(11,532 |
) |
Net debt |
$ |
389,439 |
|
|
$ |
419,650 |
|
|
$ |
421,198 |
|
|
$ |
429,304 |
|
|
$ |
399,167 |
|
Concrete Pumping
Holdings, Inc. |
Reconciliation of
Historical Adjusted EBITDA |
(dollars in thousands) |
Q1 2022 |
|
|
Q2 2022 |
|
|
Q3 2022 |
|
|
Q4 2022 |
|
|
Q1 2023 |
|
|
Q2 2023 |
|
|
Q3 2023 |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,183 |
|
|
$ |
5,985 |
|
|
$ |
12,976 |
|
|
$ |
8,532 |
|
|
$ |
6,475 |
|
|
$ |
5,588 |
|
|
$ |
10,336 |
|
Interest expense, net |
|
6,261 |
|
|
|
6,346 |
|
|
|
6,517 |
|
|
|
6,765 |
|
|
|
6,871 |
|
|
|
7,348 |
|
|
|
7,066 |
|
Income tax expense
(benefit) |
|
(22 |
) |
|
|
527 |
|
|
|
2,030 |
|
|
|
2,991 |
|
|
|
644 |
|
|
|
1,465 |
|
|
|
3,318 |
|
Depreciation and
amortization |
|
14,080 |
|
|
|
14,236 |
|
|
|
14,190 |
|
|
|
14,957 |
|
|
|
14,449 |
|
|
|
14,721 |
|
|
|
14,707 |
|
EBITDA |
|
21,502 |
|
|
|
27,094 |
|
|
|
35,713 |
|
|
|
33,245 |
|
|
|
28,439 |
|
|
|
29,122 |
|
|
|
35,427 |
|
Transaction expenses |
|
21 |
|
|
|
20 |
|
|
|
20 |
|
|
|
259 |
|
|
|
3 |
|
|
|
24 |
|
|
|
5 |
|
Stock based compensation |
|
1,480 |
|
|
|
1,351 |
|
|
|
1,333 |
|
|
|
870 |
|
|
|
1,140 |
|
|
|
1,064 |
|
|
|
934 |
|
Change in fair value of
warrant liabilities |
|
- |
|
|
|
(2,474 |
) |
|
|
(7,420 |
) |
|
|
- |
|
|
|
(4,556 |
) |
|
|
(1,172 |
) |
|
|
(911 |
) |
Other income, net |
|
(37 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
|
|
(19 |
) |
|
|
(21 |
) |
|
|
(13 |
) |
|
|
(262 |
) |
Other adjustments (1) |
|
353 |
|
|
|
1,080 |
|
|
|
407 |
|
|
|
1,292 |
|
|
|
41 |
|
|
|
(192 |
) |
|
|
(277 |
) |
Adjusted EBITDA |
$ |
23,319 |
|
|
$ |
27,058 |
|
|
$ |
30,037 |
|
|
$ |
35,647 |
|
|
$ |
25,046 |
|
|
$ |
28,833 |
|
|
$ |
34,916 |
|
(1) See note above.
Grafico Azioni Concrete Pumping (NASDAQ:BBCP)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Concrete Pumping (NASDAQ:BBCP)
Storico
Da Giu 2023 a Giu 2024