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Limbach Holdings, Inc. Announces Second Quarter 2023 Results

Revenue from Owner Direct Relationships (“ODR”) Segment up 18.1% Year-over-Year

ODR Segment Accounted for Approximately 47.1% of Revenue and 60.5% of Consolidated Gross Profit

Consolidated Gross Margin Increased to 22.8%

Increase in FY 2023 Adjusted EBITDA Guidance

Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended June 30, 2023.

2023 Second Quarter Financial Overview Compared to 2022 Second Quarter

  • Consolidated revenue was $124.9 million, an increase of 7.5% from $116.1 million.
  • Gross profit was $28.5 million, an increase of 33.7% from $21.3 million.
  • Net income of $5.3 million, or $0.46 per diluted share, compared to a net income of $0.9 million, or $0.08 per diluted share.
  • Adjusted EBITDA of $11.9 million, up 81.1% from $6.6 million.
  • Net cash provided by operating activities of $16.9 million, compared to $15.6 million.

Management Comments

Michael McCann, Limbach’s President and Chief Executive Officer, said, “We continued to execute on a number of fronts during the second quarter, with solid revenue growth in our ODR segment and improvement in gross margin in both segments. The net result was a sharp improvement in net income and Adjusted EBITDA from year-ago levels. We continue to experience strong demand for our services in the ODR segment across a number of our target end markets as tight supply chain conditions persist. With tight supply chain conditions for new equipment, we see increased demand for T&M work to keep aging equipment working and an increased interest in operating efficiencies on the part of building owners which is largely attributable to the increase in Adjusted EBITDA guidance.”

Mr. McCann continued, “We remain intensely focused on positioning Limbach as the preferred building solutions partner for enterprises with mission critical assets, driving demand for our services throughout the cycle. By providing value-added solutions that enable our customers to improve their operating efficiency and return on assets, we are able to create durable relationships that allow us to realize continued improvement in margins and profitability.”

Mr. McCann concluded, “Our value creation strategy centers on three primary levers – increasing the proportion of our revenues that come from our higher-margin ODR segment; delivering higher-margin evolved offerings for our customers; and pursuit of strategic acquisitions. Following the end of the second quarter, we announced the acquisition of ACME Industrial Products based in Chattanooga, Tennessee. We are very excited to welcome everyone at ACME to the Limbach family. ACME enjoys an outstanding reputation in the Chattanooga area and is a market leader in servicing hydroelectric facilities. This acquisition is very much ‘on strategy’ and we continue to work diligently on additional acquisition opportunities for this year and beyond.”

Second Quarter 2023 Results Detail

The following are results for the three months ended June 30, 2023 compared to the three months ended June 30, 2022:

  • Consolidated revenue was $124.9 million, an increase of 7.5% from $116.1 million. ODR segment revenue of $58.8 million increased by $9.0 million, or 18.1%, while GCR segment revenue was relatively flat. The Company continued its strategic focus on expanding the ODR segment’s contribution to the business.
  • Gross margin increased to 22.8%, up from 18.4%. On a dollar basis, total gross profit was $28.5 million, compared to $21.3 million. ODR gross profit increased $4.6 million, or 36.6%, due to the combination of an increase in revenue and higher segment margins of 29.3% versus 25.4% driven by contract mix. GCR gross profit increased $2.6 million, or 29.7%, due to higher segment margins of 17.1%, compared with 13.1%. The Company continues to expect annual GCR gross margins to trend to a range of 12% to 15%, while ODR margins are expected to be in a range from 25% to 28%.
  • Selling, general and administrative expenses increased by approximately $1.7 million, to $20.4 million, compared to $18.7 million. The increase in SG&A was primarily due to a $1.3 million increase associated with payroll-related expenses and a $0.5 million increase in stock compensation expense, partially offset by a $0.4 million decrease in rent related expenses. As a percent of revenue, selling, general and administrative expenses were 16.3%, up from 16.1%.
  • Interest expense was $0.5 million during the current and prior year quarter, which was the result of higher interest rates on outstanding debt despite a lower overall outstanding debt balance period-over-period.
  • Interest income was $0.2 million compared to marginal interest income in the prior year. This increase was due to the Company's overnight repurchase agreement, investments in U.S. Treasury Bills, and money market funds.
  • Net income was $5.3 million as compared to $0.9 million. Diluted income per share was $0.46 as compared to $0.08. Adjusted EBITDA was $11.9 million as compared to $6.6 million, an increase of 81.1%.
  • Net cash provided by operating activities increased to $16.9 million as compared to $15.6 million.

Balance Sheet

At June 30, 2023, we had cash and cash equivalents of $45.9 million. We had current assets of $199.2 million and current liabilities of $127.3 million at June 30, 2023, representing a current ratio of 1.57x compared to 1.42x at December 31, 2022. Working capital was $71.9 million at June 30, 2023, an increase of $5.0 million from December 31, 2022. At June 30, 2023, we had $10.0 million in borrowings against our revolving credit facility and $4.2 million for standby letters of credit. During the six months ended June 30, 2023, the Company made cash payments of $11.5 million on the principal portion of the A&R Wintrust Term Loan prior to its extinguishment.

Through June 30, 2023, all 600,000 of our $15 Exercise Price Sponsor Warrants and 163,444 of our Merger Warrants were exercised on a cashless basis by the holders of the warrants, which resulted in the warrants being exercised for 167,564 and 45,797 shares of our common stock, respectively. For the period from July 1, 2023 through July 20, 2023, the holders to the Merger Warrants exercised on a cashless basis 443,032 warrants, which resulted in the Merger Warrants being converted into 228,945 shares of our common stock. The remaining 23,167 unexercised Merger Warrants expired by their terms on July 20, 2023.

Subsequent Events

On July 3, 2023, the Company completed the acquisition of ACME Industrial Piping, LLC (“ACME”), a specialty industrial contractor based in Chattanooga, Tennessee, for a purchase price at closing of $5 million in cash. The transaction also provides for an earnout of up to $2.5 million potentially being paid out over the next two years. ACME specializes in performing industrial maintenance, capital project work, and emergency services for specialty chemical and manufacturing clients, and is a leading mechanical solutions provider for hydroelectric producers.

2023 Guidance

We are updating our guidance for FY 2023 as follows:

 

 

Current

 

Previous

Revenue

 

$490 million - $520 million

 

$490 million - $520 million

Adjusted EBITDA

 

$38 million - $41 million

 

$33 million - $37 million

Conference Call Details

Date:

 

Thursday, August 10, 2023

Time:

 

9:00 a.m. Eastern Time

Participant Dial-In Numbers:

Domestic callers:

 

(877) 407-6176

International callers:

 

(201) 689-8451

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=c1l6wBEc. An audio replay of the call will be archived on Limbach’s website for 365 days.

About Limbach

Limbach is a building systems solutions firm with expertise in the design, prefabrication, installation, management and maintenance of heating, ventilation, air-conditioning ("HVAC"), mechanical, electrical, plumbing and controls systems. With over 1,500 team members and 17 offices located throughout the United States, we partner with institutions with mission-critical infrastructures, such as data centers and healthcare, industrial & light manufacturing, cultural & entertainment, higher education, and life science facilities. With Limbach's full life-cycle capabilities, from concept design and engineering through system commissioning and recurring 24/7 service and maintenance, Limbach is positioned as a value-added and indispensable partner for building owners, construction managers, general contractors, and energy service companies.

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” 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)

 

2023

 

2022

 

2023

 

2022

Revenue

 

$

124,882

 

 

$

116,120

 

 

$

245,891

 

 

$

230,942

 

Cost of revenue

 

 

96,369

 

 

 

94,800

 

 

 

191,151

 

 

 

191,282

 

Gross profit

 

 

28,513

 

 

 

21,320

 

 

 

54,740

 

 

 

39,660

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

20,416

 

 

 

18,690

 

 

 

41,466

 

 

 

37,424

 

Change in fair value of contingent consideration

 

 

162

 

 

 

765

 

 

 

303

 

 

 

765

 

Amortization of intangibles

 

 

383

 

 

 

399

 

 

 

766

 

 

 

798

 

Total operating expenses

 

 

20,961

 

 

 

19,854

 

 

 

42,535

 

 

 

38,987

 

Operating income

 

 

7,552

 

 

 

1,466

 

 

 

12,205

 

 

 

673

 

Other (expenses) income:

 

 

 

 

 

 

 

 

Interest expense

 

 

(511

)

 

 

(478

)

 

 

(1,178

)

 

 

(964

)

Interest income

 

 

247

 

 

 

 

 

 

247

 

 

 

 

Gain (loss) on disposition of property and equipment

 

 

175

 

 

 

147

 

 

 

(40

)

 

 

111

 

Loss on early termination of operating lease

 

 

 

 

 

(32

)

 

 

 

 

 

(849

)

Loss on early debt extinguishment

 

 

(311

)

 

 

 

 

 

(311

)

 

 

 

Gain on change in fair value of interest rate swap

 

 

193

 

 

 

 

 

 

37

 

 

 

 

Total other expenses

 

 

(207

)

 

 

(363

)

 

 

(1,245

)

 

 

(1,702

)

Income (loss) before income taxes

 

 

7,345

 

 

 

1,103

 

 

 

10,960

 

 

 

(1,029

)

Income tax provision (benefit)

 

 

2,025

 

 

 

237

 

 

 

2,647

 

 

 

(379

)

Net income (loss)

 

$

5,320

 

 

$

866

 

 

$

8,313

 

 

$

(650

)

 

 

 

 

 

 

 

 

 

Earnings (loss) Per Share (“EPS”)

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.50

 

 

$

0.08

 

 

$

0.79

 

 

$

(0.06

)

Diluted

 

$

0.46

 

 

$

0.08

 

 

$

0.73

 

 

$

(0.06

)

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

10,644,423

 

 

 

10,423,068

 

 

 

10,560,381

 

 

 

10,421,886

 

Diluted

 

 

11,507,311

 

 

 

10,567,304

 

 

 

11,336,474

 

 

 

10,421,886

 

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Balance Sheets (Unaudited)

 

(in thousands, except share and per share data)

June 30, 2023

 

December 31, 2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

45,929

 

 

$

36,001

 

Restricted cash

 

65

 

 

 

113

 

Accounts receivable (net of allowance for credit losses of $295 and net of allowance for doubtful accounts of $234 as of June 30, 2023 and December 31, 2022, respectively)

 

87,230

 

 

 

124,442

 

Contract assets

 

59,424

 

 

 

61,453

 

Income tax receivable

 

814

 

 

 

95

 

Other current assets

 

5,747

 

 

 

3,886

 

Total current assets

 

199,209

 

 

 

225,990

 

 

 

 

 

Property and equipment, net

 

19,623

 

 

 

18,224

 

Intangible assets, net

 

14,575

 

 

 

15,340

 

Goodwill

 

11,370

 

 

 

11,370

 

Operating lease right-of-use assets

 

17,149

 

 

 

18,288

 

Deferred tax asset

 

4,999

 

 

 

4,829

 

Other assets

 

502

 

 

 

515

 

Total assets

$

267,427

 

 

$

294,556

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

2,431

 

 

$

9,564

 

Current operating lease liabilities

 

3,598

 

 

 

3,562

 

Accounts payable, including retainage

 

53,376

 

 

 

75,122

 

Contract liabilities

 

43,682

 

 

 

44,007

 

Accrued income taxes

 

1,505

 

 

 

1,888

 

Accrued expenses and other current liabilities

 

22,677

 

 

 

24,942

 

Total current liabilities

 

127,269

 

 

 

159,085

 

Long-term debt

 

19,485

 

 

 

21,528

 

Long-term operating lease liabilities

 

14,513

 

 

 

15,643

 

Other long-term liabilities

 

502

 

 

 

2,858

 

Total liabilities

 

161,769

 

 

 

199,114

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 10,946,316 and 10,471,410, respectively, and 10,766,664 and 10,291,758 outstanding, respectively

 

1

 

 

 

1

 

Additional paid-in capital

 

89,712

 

 

 

87,809

 

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

 

(2,000

)

 

 

(2,000

)

Retained earnings

 

17,945

 

 

 

9,632

 

Total stockholders’ equity

 

105,658

 

 

 

95,442

 

Total liabilities and stockholders’ equity

$

267,427

 

 

$

294,556

 

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

Six Months Ended

June 30,

(in thousands)

2023

 

2022

Cash flows from operating activities:

 

 

 

Net income (loss)

$

8,313

 

 

$

(650

)

Adjustments to reconcile net income (loss) to cash provided by operating activities:

 

 

 

Depreciation and amortization

 

3,859

 

 

 

4,148

 

Provision for credit losses / doubtful accounts

 

116

 

 

 

104

 

Stock-based compensation expense

 

2,234

 

 

 

1,174

 

Noncash operating lease expense

 

1,882

 

 

 

2,232

 

Amortization of debt issuance costs

 

58

 

 

 

65

 

Deferred income tax provision

 

(170

)

 

 

(12

)

Loss (gain) on sale of property and equipment

 

40

 

 

 

(111

)

Loss on early termination of operating lease

 

 

 

 

849

 

Loss on change in fair value of contingent consideration

 

303

 

 

 

765

 

Loss on early debt extinguishment

 

311

 

 

 

 

Gain on change in fair value of interest rate swap

 

(37

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

37,096

 

 

 

(11,796

)

Contract assets

 

2,029

 

 

 

8,904

 

Other current assets

 

(1,861

)

 

 

(520

)

Accounts payable, including retainage

 

(21,747

)

 

 

(635

)

Prepaid income taxes

 

(719

)

 

 

(562

)

Accrued taxes payable

 

(383

)

 

 

(501

)

Contract liabilities

 

(325

)

 

 

13,123

 

Operating lease liabilities

 

(1,836

)

 

 

(2,165

)

Accrued expenses and other current liabilities

 

(1,806

)

 

 

(1,861

)

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

 

(1,224

)

 

 

 

Other long-term liabilities

 

159

 

 

 

69

 

Net cash provided by operating activities

 

26,292

 

 

 

12,620

 

Cash flows from investing activities:

 

 

 

Proceeds from sale of property and equipment

 

275

 

 

 

189

 

Purchase of property and equipment

 

(1,499

)

 

 

(473

)

Net cash used in investing activities

 

(1,224

)

 

 

(284

)

Cash flows from financing activities:

 

 

 

Payments on Wintrust and A&R Wintrust Term Loans

 

(21,452

)

 

 

(9,149

)

Proceeds from Wintrust Revolving Loan

 

10,000

 

 

 

15,194

 

Payments on Wintrust Revolving Loan

 

 

 

 

(11,694

)

Payment of contingent consideration liability up to acquisition-date fair value

 

(1,776

)

 

 

 

Payments on finance leases

 

(1,302

)

 

 

(1,358

)

Payments of debt issuance costs

 

(50

)

 

 

(25

)

Taxes paid related to net-share settlement of equity awards

 

(847

)

 

 

(363

)

Proceeds from contributions to Employee Stock Purchase Plan

 

239

 

 

 

213

 

Net cash used in financing activities

 

(15,188

)

 

 

(7,182

)

Increase in cash, cash equivalents and restricted cash

 

9,880

 

 

 

5,154

 

Cash, cash equivalents and restricted cash, beginning of period

 

36,114

 

 

 

14,589

 

Cash, cash equivalents and restricted cash, end of period

$

45,994

 

 

$

19,743

 

Supplemental disclosures of cash flow information

 

 

 

Noncash investing and financing transactions:

 

 

 

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

$

742

 

 

$

 

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

 

3,392

 

 

 

1,968

 

Right of use assets disposed or adjusted modifying operating lease liabilities

 

 

 

 

(1,276

)

Right of use assets disposed or adjusted modifying finance lease liabilities

 

(30

)

 

 

(77

)

Interest paid

 

1,181

 

 

 

911

 

Cash paid for income taxes

$

3,919

 

 

$

696

 

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

 

 

Three Months Ended

June 30,

 

Increase/(Decrease)

(in thousands, except for percentages)

2023

 

2022

 

$

 

%

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

GCR

$

66,102

 

52.9

%

 

$

66,336

 

57.1

%

 

$

(234

)

 

(0.4

)%

ODR

 

58,780

 

47.1

%

 

 

49,784

 

42.9

%

 

 

8,996

 

 

18.1

%

Total revenue

 

124,882

 

100.0

%

 

 

116,120

 

100.0

%

 

 

8,762

 

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

GCR(1)

 

11,272

 

17.1

%

 

 

8,694

 

13.1

%

 

 

2,578

 

 

29.7

%

ODR(2)

 

17,241

 

29.3

%

 

 

12,626

 

25.4

%

 

 

4,615

 

 

36.6

%

Total gross profit

 

28,513

 

22.8

%

 

 

21,320

 

18.4

%

 

 

7,193

 

 

33.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative(3)

 

20,416

 

16.3

%

 

 

18,690

 

16.1

%

 

 

1,726

 

 

9.2

%

Change in fair value of contingent consideration

 

162

 

0.1

%

 

 

765

 

0.7

%

 

 

(603

)

 

(78.8

)%

Amortization of intangibles

 

383

 

0.3

%

 

 

399

 

0.3

%

 

 

(16

)

 

(4.0

)%

Total operating income

$

7,552

 

6.0

%

 

$

1,466

 

1.3

%

 

$

6,086

 

 

415.1

%

(1)

As a percentabe of GCR revenue.

(2)

As a percentage of ODR revenue.

(3)

Included within selling, general and administrative expenses was $1.1 million and $0.6 million of stock based compensation expense for the three months ended June 30, 2023 and 2022, respectively.

 

 

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

 

 

Six Months Ended

June 30,

 

Increase/(Decrease)

(in thousands, except for percentages)

2023

 

2022

 

$

 

%

Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

GCR

$

128,393

 

52.2

%

 

$

138,268

 

59.9

%

 

$

(9,875

)

 

(7.1

)%

ODR

 

117,498

 

47.8

%

 

 

92,674

 

40.1

%

 

 

24,824

 

 

26.8

%

Total revenue

 

245,891

 

100.0

%

 

 

230,942

 

100.0

%

 

 

14,949

 

 

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

GCR(1)

 

21,590

 

16.8

%

 

 

17,052

 

12.3

%

 

 

4,538

 

 

26.6

%

ODR(2)

 

33,150

 

28.2

%

 

 

22,608

 

24.4

%

 

 

10,542

 

 

46.6

%

Total gross profit

 

54,740

 

22.3

%

 

 

39,660

 

17.2

%

 

 

15,080

 

 

38.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative(3)

 

41,466

 

16.9

%

 

 

37,424

 

16.2

%

 

 

4,042

 

 

10.8

%

Change in fair value of contingent consideration

 

303

 

0.1

%

 

 

765

 

0.3

%

 

 

(462

)

 

(60.4

)%

Amortization of intangibles

 

766

 

0.3

%

 

 

798

 

0.3

%

 

 

(32

)

 

(4.0

)%

Total operating income

$

12,205

 

5.0

%

 

$

673

 

0.3

%

 

$

11,532

 

 

1,713.5

%

(1) 

As a percentage of GCR revenue. 

(2)

As a percentage of ODR revenue.

(3)

Included within selling, general and administrative expenses was $2.2 million and $1.2 million of stock based compensation expense for the six months ended June 30, 2023 and 2022, respectively.

Non-GAAP Financial Measures

In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA, a non-GAAP financial measure. 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 believe that Adjusted EBITDA is 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 Adjusted EBITDA is 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. Our calculation of Adjusted EBITDA, 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 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 (Loss) to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

(in thousands)

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Net income (loss)

$

5,320

 

 

$

866

 

$

8,313

 

 

$

(650

)

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

1,937

 

 

 

2,086

 

 

3,859

 

 

 

4,148

 

Interest expense

 

511

 

 

 

478

 

 

1,178

 

 

 

964

 

Interest income

 

(247

)

 

 

 

 

(247

)

 

 

 

Non-cash stock-based compensation expense

 

1,101

 

 

 

575

 

 

2,234

 

 

 

1,174

 

Loss on early debt extinguishment

 

311

 

 

 

 

 

311

 

 

 

 

Change in fair value of interest rate swap

 

(193

)

 

 

 

 

(37

)

 

 

 

CEO transition costs

 

147

 

 

 

 

 

958

 

 

 

 

Loss on early termination of operating lease

 

 

 

 

32

 

 

 

 

 

849

 

Income tax provision (benefit)

 

2,025

 

 

 

237

 

 

2,647

 

 

 

(379

)

Acquisition and other transaction costs

 

299

 

 

 

45

 

 

299

 

 

 

198

 

Change in fair value of contingent consideration

 

162

 

 

 

765

 

 

303

 

 

 

765

 

Restructuring costs(1)

 

532

 

 

 

1,491

 

 

772

 

 

 

2,926

 

Adjusted EBITDA

$

11,905

 

 

$

6,575

 

$

20,590

 

 

$

9,995

 

(1) 

 

For the three and six months ended June 30, 2023, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches. For the three and six months ended June 30, 2022, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches and nominal restructuring costs related to cost initiatives throughout the company.

 

Contacts

Investor Relations

The Equity Group, Inc.

Jeremy Hellman, CFA

Vice President

(212) 836-9626 / jhellman@equityny.com

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