Southland Announces Preliminary Financial Results for the Second Quarter 2023
10 Agosto 2023 - 11:27PM
Business Wire
Southland Holdings, Inc. (NYSE American: SLND and SLND WS)
(“Southland” or “Company”), a leading provider of specialized
infrastructure construction services, today announced preliminary
financial results for the three months ended June 30, 2023.
- Revenue: $257 million
- Gross loss: $34 million
- Positive cash flow from operating activities: $24 million
- Backlog $2.7 billion
Southland incurred significant unfavorable charges during the
quarter, primarily stemming from its legacy asphalt and concrete
materials production and paving business. In an effort to wind down
this component of its Transportation segment and reallocate
resources towards core operations, the Company sold various
materials production assets in the second quarter. As a result, the
Company recorded unfavorable charges in the quarter related to
additional expected future costs associated with procuring and
transporting materials from third parties. While work is expected
to be completed over the next one to two years, Southland has
recorded the increased estimated future costs to finish these
projects in this quarter in accordance with Generally Accepted
Accounting Principles. The company estimates the negative impact to
gross margin from these charges to be approximately $49 million for
the second quarter. At the end of the second quarter, the company
estimates that approximately 12% of its $2.7 billion backlog
consists of legacy large-scale paving work.
Frank Renda, Southland’s CEO stated, “We are disappointed in our
second quarter performance as we faced challenges in our legacy
materials production and paving business. We believe discontinuing
large-scale materials production will enable us to focus on our
core business and is the best decision for the long-term success
for Southland. Our core business remains strong, demand for our
services continues to be high and we are confident Southland is
well positioned for the future.”
The preliminary, unaudited, financial results included in this
press release are based on information available to the company as
of the date of this release. As a result, our actual results
presented may vary from these preliminary estimates and may be
affected by the risks and uncertainties identified in this press
release and in our filings with the Securities and Exchange
Commission. These estimates are not a comprehensive statement of
our financial results for the periods presented and should not be
viewed as a substitute for full financial statements prepared in
accordance with GAAP.
Conference Call
Southland will release its second quarter results on Monday,
August 14th after market hours. Southland will host a conference
call at 10:00 a.m. Eastern Time on Tuesday, August 15, 2023. The
call may be accessed here, or at www.southlandholdings.com.
Following the conference call, a replay will be available on
Southland’s website.
About Southland
Southland is a leading provider of specialized infrastructure
construction services. With roots dating back to 1900, Southland
and its subsidiaries form one of the largest infrastructure
construction companies in North America, with experience throughout
the world. The company serves the bridges, tunneling,
communications, transportation and facilities, marine, steel
structures, water and wastewater treatment, and water pipeline end
markets. Southland is headquartered in Grapevine, Texas.
For more information, please visit Southland’s website at
www.southlandholdings.com.
Non-GAAP Financial Measures
Backlog as presented in this press release is an unaudited
financial measure that is not presented in accordance with
generally accepted accounting principles (“GAAP”). Southland
defines backlog as a measure of the total amount of revenue
remaining to be earned on projects that have been awarded. A
project is included in backlog once Southland has an executed
contract, or authorized notice to proceed. As a result, Southland
believes backlog is firm, although cancellations or scope
adjustments may occur. In Southland’s industry, backlog is an
indicator of future revenue streams for work that has been awarded
but not completed. Backlog should not be considered a comprehensive
indicator of future revenue as contracts can be terminated by
customers on relatively short notice, and backlog does not include
future work for which Southland may be awarded. In the event of a
cancelation, Southland is typically reimbursed for all of its costs
through a specific contractual date, as well as its costs to
demobilize from the project site. Southland’s contracts do not
typically grant it rights to revenue reflected in backlog. Projects
may remain in backlog for extended periods of time as a result of
schedule delays, regulatory requirements, project specific issues,
or other reasons. Contract amounts from contracts where a
transaction price cannot be reasonably estimated are not be
included within our backlog amount. Note that other companies may
calculate backlog differently, and therefore backlog may not be
directly comparable to similarly titled measures of other
companies. Further, backlog is not a measure of financial
performance in accordance with GAAP and may exclude items that are
significant in understanding and assessing financial results.
Therefore, backlog should not be considered in isolation. Southland
believes that backlog provides useful information to management and
investors regarding certain financial and business trends relating
to Southland’s financial condition and results of operations.
Southland also believes that backlog provides an additional tool
for investors to use in evaluating ongoing operating results and
trends. Southland’s calculation of backlog is subject to inherent
limitations as it reflects the exercise of judgments by
management.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are neither historical facts nor assurances of future
performance. Instead, they are based only on Southland’s current
beliefs, expectations and assumptions regarding the future of
Southland’s business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of Southland’s control. Southland’s actual
results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should
not rely on any of these forward-looking statements.
Any forward-looking statement made by Southland in this press
release is based only on information currently available to
Southland and speaks only as of the date on which it is made.
Southland undertakes no obligation to publicly update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810386847/en/
Cody Gallarda EVP, Chief Financial Officer
cgallarda@southlandholdings.com
Alex Murray Corporate Development & Investor Relations
amurray@southlandholdings.com
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