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Concrete Pumping Holdings Reports Strong Fourth Quarter and Fiscal Year 2022 Results, Provides Financial Outlook for Fiscal Year 2023
Источник: Nasdaq GlobeNewswire / 23 янв 2023 16:05:00 America/New_York
DENVER, Jan. 23, 2023 (GLOBE NEWSWIRE) -- 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 fourth quarter and fiscal year ended October 31, 2022.
Fourth Quarter Fiscal Year 2022 Highlights vs. Fourth Quarter of Fiscal Year 2021 (where applicable)
- Revenue increased 31% to $114.9 million compared to $87.8 million.
- Gross profit increased 30% to $48.6 million compared to $37.3 million.
- Income from operations increased 56% to $18.3 million compared to $11.7 million.
- Net income attributable to common shareholders increased 170% to $8.1 million or $0.14 per diluted share, compared to $3.0 million or $0.05 per diluted share.
- Adjusted EBITDA1 increased 28% to $36.3 million compared to $28.3 million, with Adjusted EBITDA margin1 at 31.6% compared to 32.2%.
- Amounts outstanding under debt agreements were $427.1 million with net debt1 of $419.7 million. Total available liquidity was $111.2 million as of October 31, 2022, compared to $134.1 million as of July 31, 2022. The decrease in liquidity was driven by the purchase of Coastal Concrete Pumping in August 2022.
Fiscal Year 2022 Highlights vs. Fiscal Year 2021
- Revenue increased 27% to $401.3 million compared to $315.8 million.
- Gross profit increased 19% to $163.6 million compared to $137.7 million.
- Income from operations increased 32% to $50.1 million compared to $38.0 million.
- Net income attributable to common shareholders improved by $43.7 million to $26.9 million or $0.47 per diluted share, compared to a net loss attributable to common shareholders of $16.8 million or $(0.31) per diluted share.
- Adjusted EBITDA1 increased 14% to $118.6 million compared to $104.3 million, with Adjusted EBITDA margin1 at 29.5% compared to 33.0%.
Management Commentary
“In the fourth quarter we grew revenue across all segments and reported our fifth consecutive quarter of double-digit consolidated revenue growth, a testament to our team and the continued strength and resilience of our business,” said Bruce Young, CEO of Concrete Pumping Holdings. “As a result, we were able to drive record annual revenue, net income and Adjusted EBITDA performance for the company.
“In our U.S. concrete pumping business, we continued to grow market share in the commercial and infrastructure end markets. Our U.S. concrete waste management business, Eco-Pan, continues to generate double-digit growth, as we have been successful in growing our operations network while our expanded salesforce has done an outstanding job selling its attractive value proposition. In the U.K., we delivered an increase in the volume of projects as the region continues to benefit from commercial and infrastructure development.
“Entering fiscal year 2023, we expect continued strong demand across our commercial and infrastructure segments, and we are prepared for a continued dynamic environment in our residential end market given uncertain macroeconomic conditions. We expect to continue leveraging our scale to mitigate cost inflation, particularly in diesel fuel, while also remaining opportunistic to invest in our equipment to attract top talent in order to drive profitable growth and superior shareholder value.”
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1 Adjusted EBITDA, Adjusted EBITDA margin and net debt are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“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.Fourth Quarter Fiscal Year 2022 Financial Results
Revenue in the fourth quarter of fiscal year 2022 increased 31% to $114.9 million compared to $87.8 million in the fourth quarter of fiscal year 2021. The increase was primarily attributable to strong growth across each of the Company’s segments as a result of organic growth from higher volumes and rate per hour increases, as well as the acquisitions of Hi-Tech Concrete Pumping Services in September 2021, Pioneer Concrete Pumping in November 2021 and Coastal Carolina Pumping in August 2022. These three acquisitions collectively contributed revenue of $11.9 million and $1.8 million during the fourth quarter of fiscal years 2022 and 2021, respectively. Excluding these acquisitions, revenue organically increased 20% to $103.0 million.
Gross profit in the fourth quarter of fiscal year 2022 increased 30% to $48.6 million compared to $37.3 million in the prior year quarter. Gross margin was 42.3%, relatively flat with 42.6% in the prior year quarter.
G&A expenses in the fourth quarter of fiscal year 2022 were $30.1 million compared to $25.6 million in the prior year quarter. As a percent of revenue, G&A expenses in the fourth quarter of fiscal year 2022 improved to 26.2% compared to 29.1% in the fourth quarter of fiscal year 2021. The increase in G&A expenses was primarily attributable to higher labor costs as a result of recent acquisitions. Excluding non-cash expenses for depreciation expense of $0.6 million in the fourth quarter of fiscal years 2022 and 2021, respectively, amortization of intangibles of $5.6 million and $6.6 million in the fourth quarter of fiscal years 2022 and 2021, respectively, and stock-based compensation expense of $0.9 million and $1.3 million in the fourth quarter of fiscal years 2022 and 2021, respectively, G&A expenses were $23.0 million (20.0% of revenue) in the fourth quarter of 2022 compared to $17.1 million (19.5% of revenue) in the fourth quarter of 2021.
Net income attributable to common shareholders in the fourth quarter of fiscal year 2022 increased 170% to $8.1 million, or $0.14 per diluted share, compared to net income attributable to common shareholders of $3.0 million, or $0.05 per diluted share, in the prior year quarter.
Adjusted EBITDA in the fourth quarter of fiscal year 2022 increased 28% to $36.3 million compared to $28.3 million in the prior year quarter. Adjusted EBITDA margin was 31.6% compared to 32.2% in the prior year quarter.
Fiscal Year 2022 Financial Results
Revenue in fiscal year 2022 increased 27% to $401.3 million compared to $315.8 million in fiscal year 2021. The increase was primarily attributable to double-digit growth across all business segments, with particularly strong growth from the U.S. Concrete Pumping and U.S. Concrete Waste Management Services segments. The U.S. Concrete Pumping growth was primarily attributable to: (1) robust organic growth in most markets as a result of higher volumes and rate per hour increases and (2) the acquisitions of Hi-Tech, Pioneer and Coastal Carolina. These three acquisitions collectively contributed revenue of $32.7 million and $1.8 million during fiscal years 2022 and 2021, respectively. The U.S. Concrete Waste Management Services increase was primarily due to strong organic growth and pricing improvements.
Gross profit in fiscal year 2022 increased 19% to $163.6 million compared to $137.7 million in fiscal year 2021. Gross margin was 40.8% down from 43.6% in the prior year due to rapid inflationary cost pressures, most notably higher labor and fuel costs.
G&A expenses in fiscal year 2022 increased to $113.2 million compared to $99.4 million in fiscal year 2021. The overall increase was due to: higher (1) labor costs of $11.1 million and (2) other G&A-related expenses of $8.6 million, which includes automotive, travel, office and rent expenses. These increased costs were predominantly driven by the recent acquisitions discussed above. In addition, G&A expenses were negatively impacted by $2.5 million in non-cash expenses related to fluctuations in the Great British Pound. As a percent of revenue, G&A expenses were 28.2% in fiscal year 2022 compared to 31.5% in fiscal year 2021. Excluding non-cash expenses for depreciation of $2.3 million and $2.1 million in fiscal years 2022 and 2021, respectively, amortization of intangibles of $22.6 million and $27.1 million in fiscal years 2022 and 2021, respectively, and stock-based compensation expense of $5.0 million and $6.6 million in fiscal years 2022 and 2021, respectively, G&A expenses were $83.3 million for fiscal year 2022 (20.8% of revenue) compared to $63.6 million for fiscal year 2021 (20.1% of revenue).
Net income attributable to common shareholders in fiscal year 2022 improved $43.7 million to $26.9 million or $0.47 per diluted share, compared to a net loss attributable to common shareholders of $16.8 million or $(0.31) per diluted share in fiscal year 2021.
Adjusted EBITDA in fiscal year 2022 increased 14% to $118.6 million compared to $104.3 million in the prior year. Adjusted EBITDA margin was 29.5% compared to 33.0% in the prior year.
Liquidity
On October 31, 2022, the Company had debt outstanding of $427.1 million, net debt of $419.7 million and total available liquidity of $111.2 million.
Segment Results
U.S. Concrete Pumping. Revenue in the fourth quarter of fiscal year 2022 increased 34% to $84.3 million compared to $63.0 million in the prior year quarter. The increase was primarily due to (1) organic growth and pricing improvements and (2) recent acquisitions that collectively contributed revenue of $11.9 million and $1.8 million during the fourth quarter of fiscal years 2022 and 2021, respectively. Net income in the fourth quarter of fiscal year 2022 improved to $2.8 million compared to $0.8 million in the prior year quarter. Adjusted EBITDA increased 29% to $23.4 million in the fourth quarter of fiscal year 2022 compared to $18.1 million in the prior year quarter.
Revenue in fiscal year 2022 increased 29% to $296.5 million compared to $229.5 million in fiscal year 2021. The U.S. Pumping business successfully delivered record revenue and strong operational efficiency due to execution by the regional teams across all end-markets. In addition, acquisitions contributed $31.0 million more to revenue for fiscal year 2022 when compared to 2021. Net income improved to $6.5 million in fiscal year 2022 compared to a net loss of $11.0 million in fiscal year 2021. Adjusted EBITDA in fiscal year 2022 increased 14% to $77.5 million compared to $68.1 million in fiscal year 2021. The increase in net income and Adjusted EBITDA is primarily attributable to the strong growth in revenue and pricing improvements.
U.K. Operations. Revenue in the fourth quarter of fiscal year 2022 increased 8% to $14.9 million compared to $13.8 million in the prior year quarter. Net income in the fourth quarter of fiscal year 2022 was $1.7 million compared to a net loss of $1.3 million in the prior year quarter. Adjusted EBITDA improved 12% to $4.7 million in the fourth quarter of fiscal year 2022 compared to $4.2 million in the prior year quarter.
Revenue in fiscal year 2022 increased 14% to $54.9 million compared to $48.1 million in fiscal year 2021. Excluding the impact from foreign currency translation of $5.1 million, revenue improved 25% year-over-year. The increase in revenue was primarily attributable to rate per job increases and the recovery from COVID-19 in the commercial and infrastructure end markets. Net income for fiscal year 2022 improved to $2.1 million compared to a net loss of $1.0 million in fiscal year 2021. Adjusted EBITDA in fiscal year 2022 increased to $15.7 million compared to $15.3 million in fiscal year 2021, primarily due to the increase in revenue and disciplined operational execution.
U.S. Concrete Waste Management Services. Revenue in the fourth quarter of fiscal year 2022 increased 42% to $15.6 million compared to $11.0 million in the prior year quarter. The increase was primarily due to the organic growth and market share expansion and strong sales conversion. Net income in the fourth quarter of fiscal year 2022 increased to $3.7 million compared to $2.2 million in the prior year quarter. Adjusted EBITDA in the fourth quarter of fiscal year 2022 increased 41% to $7.6 million compared to $5.4 million in the prior year quarter.
Revenue in fiscal year 2022 increased 30% to $50.2 million compared to $38.6 million in fiscal year 2021, driven by organic growth, pricing improvements, and the market share expansion of concrete waste management service offerings. Net income increased 62% to $8.9 million in fiscal year 2022 compared to $5.5 million in fiscal year 2021. Adjusted EBITDA in fiscal year 2022 increased 24% to $22.8 million compared to $18.4 million in fiscal year 2021, with the increase primarily attributable to robust operational efficiency and organic revenue growth.
Fiscal Year 2023 Outlook
The Company expects fiscal year 2023 revenue to range between $420.0 million to $445.0 million, Adjusted EBITDA to range between $125.0 million to $135.0 million, and free cash flow2 to range between $65.0 million and $75.0 million.
Share Repurchase Program
In January 2023, the board of directors of the Company approved a $10.0 million increase to the Company’s share repurchase program. This authorization will expire on March 31, 2024 and is in addition to the repurchase authorization of up to $10.0 million through June 15, 2023 that was previously approved in June 2022.
During the fiscal year 2022, the Company repurchased 415,066 shares for a total of $2.7 million at an average share price of $6.48 per share. With the new authorization of $10.0 million under the January 2023 approval, a total of $17.3 million would have remained available for purchase under the Company’s repurchase program as of October 31, 2022.
"Today's announcement reflects our commitment to creating superior shareholder value," said Bruce Young. "Our disciplined approach to capital allocation and consistent operational execution have allowed us to support the growth of our businesses while delivering expected shareholder returns and creating long-term value."
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2 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 fourth quarter and fiscal year 2022 results.
Date: Monday, January 23, 2023
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-877-407-9039
International dial-in number: 1-201-689-8470
Conference ID: 13734971Please 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 here 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 February 13, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13734971About 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 October 31, 2022, the Company provided concrete pumping services in the U.S. from a footprint of approximately 100 locations across 20 states, concrete pumping services in the U.K. from approximately 30 locations, and route-based concrete waste management services from 18 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 the actual results to differ materially from the 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
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, restructuring costs, director costs, public company expense, extraordinary expenses and gain/loss on currency transactions. Starting in the first quarter of fiscal 2023, we will modify the method in which Adjusted EBITDA is calculated by no longer including in "Other adjustments" an add-back for director costs or public company expense as described above. 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 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 Humphries
Chief Financial Officer
1-303-289-7497Investor Relations:
Gateway Investor Relations
Cody Slach
1-949-574-3860
BBCP@gatewayir.com
Concrete Pumping Holdings, Inc.
Consolidated Balance SheetsOctober 31, October 31, (in thousands, except per share amounts) 2022 2021 Current assets: Cash and cash equivalents $ 7,482 $ 9,298 Trade receivables, net 62,882 49,034 Inventory, net 5,532 4,902 Income taxes receivable 485 275 Prepaid expenses and other current assets 5,175 4,110 Total current assets 81,556 67,619 Property, plant and equipment, net 419,377 337,771 Intangible assets, net 137,754 158,539 Goodwill 220,245 224,700 Right-of-use operating lease assets 24,833 - Other non-current assets 2,026 2,168 Deferred financing costs 1,698 1,868 Total assets $ 887,489 $ 792,665 Current liabilities: Revolving loan $ 52,133 $ 990 Operating lease obligations, current portion 4,001 - Finance lease obligations, current portion 109 103 Accounts payable 8,362 10,706 Accrued payroll and payroll expenses 13,341 12,226 Accrued expenses and other current liabilities 32,156 23,940 Income taxes payable 178 274 Total current liabilities 110,280 48,239 Long term debt, net of discount for deferred financing costs 370,476 369,084 Operating lease obligations, non-current 20,984 - Finance lease obligations, non-current 169 278 Deferred income taxes 74,223 70,566 Warrant liability 7,030 16,923 Total liabilities 583,162 505,090 Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of October 31, 2022 and October 31, 2021 25,000 25,000 Stockholders' equity Common stock, $0.0001 par value, 500,000,000 shares authorized, 56,226,191 and 56,564,642 issued and outstanding as of October 31, 2022 and October 31, 2021, respectively 6 6 Additional paid-in capital 379,395 374,272 Treasury stock (4,609 ) (461 ) Accumulated other comprehensive income (loss) (9,228 ) 3,671 Accumulated deficit (86,237 ) (114,913 ) Total stockholders' equity 279,327 262,575 Total liabilities and stockholders' equity $ 887,489 $ 792,665 Concrete Pumping Holdings, Inc.
Consolidated Statements of OperationsThree Months Ended October 31, Year Ended October 31, (in thousands, except share and per share amounts) 2022 2021 2022 2021 Revenue $ 114,894 $ 87,753 $ 401,292 $ 315,808 Cost of operations 66,282 50,405 237,682 178,081 Gross profit 48,612 37,348 163,610 137,727 Gross margin 42.3 % 42.6 % 40.8 % 43.6 % General and administrative expenses 30,084 25,557 113,181 99,369 Transaction costs 259 117 318 312 Income from operations 18,269 11,674 50,111 38,046 Interest expense, net (6,765 ) (6,107 ) (25,891 ) (25,190 ) Loss on extinguishment of debt - - - (15,510 ) Change in fair value of warrant liabilities - 1,301 9,894 (9,894 ) Other income, net 19 32 88 117 Income (loss) before income taxes 11,523 6,900 34,202 (12,431 ) Income tax expense 2,991 3,468 5,526 2,642 Net income (loss) 8,532 3,432 28,676 (15,073 ) - Less accretion of liquidation preference on preferred stock (441 ) (441 ) (1,750 ) (1,750 ) Income (loss) available to common shareholders $ 8,091 $ 2,991 $ 26,926 $ (16,823 ) Weighted average common shares outstanding Basic 54,075,846 53,522,451 53,914,311 53,413,594 Diluted 54,950,155 57,023,676 54,851,308 53,413,594 Net income (loss) per common share Basic $ 0.14 $ 0.05 $ 0.48 $ (0.31 ) Diluted $ 0.14 $ 0.05 $ 0.47 $ (0.31 ) Concrete Pumping Holdings, Inc.
Consolidated Statements of Cash FlowsFor the Year Ended October 31, (in thousands, except per share amounts) 2022 2021 Net income (loss) $ 28,676 $ (15,073 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Non-cash operating lease expense 3,913 - Right-of-use asset amortization for finance lease 22 - Foreign currency adjustments 2,091 - Depreciation 34,912 28,795 Deferred income taxes 5,205 2,547 Amortization of deferred financing costs 1,852 2,335 Amortization of intangible assets 22,528 27,111 Stock-based compensation expense 5,034 6,591 Change in fair value of warrant liabilities (9,894 ) 9,894 Loss on extinguishment of debt - 15,510 Net gain on the sale of property, plant and equipment (2,759 ) (1,178 ) Net changes in operating assets and liabilities: - - Trade receivables, net (15,310 ) (4,172 ) Inventory (870 ) (200 ) Prepaid expenses and other current assets (550 ) (1,771 ) Operating lease liability (3,728 ) - Income taxes payable, net (324 ) 497 Accounts payable (3,039 ) 3,972 Accrued payroll, accrued expenses and other liabilities 8,936 977 Net cash provided by operating activities 76,695 75,835 Cash flows from investing activities: Purchases of property, plant and equipment (101,932 ) (62,792 ) Proceeds from sale of property, plant and equipment 10,023 6,977 Purchases of intangible assets (1,450 ) (750 ) Acquisition of net assets - Coastal acquisition (30,762 ) - Net cash used in investing activities (124,121 ) (56,565 ) Cash flows from financing activities: Proceeds on long term debt - 375,000 Payments on long term debt - (381,206 ) Proceeds on revolving loan 377,375 280,034 Payments on revolving loan (326,945 ) (280,891 ) Payment of debt issuance costs (290 ) (8,464 ) Payments on finance lease obligations (103 ) (97 ) Purchase of treasury stock (4,148 ) (330 ) Proceeds on exercise of options 89 - Net cash provided by (used in) financing activities 45,978 (15,954 ) Effect of foreign currency exchange rate on cash (368 ) (754 ) Net increase (decrease) in cash and cash equivalents (1,816 ) 2,562 Cash and cash equivalents: Beginning of period 9,298 6,736 End of period $ 7,482 $ 9,298 Concrete Pumping Holdings, Inc.
Segment RevenueThree Months Ended October 31, Change (in thousands) 2022 2021 $ % U.S. Concrete Pumping 84,317 $ 62,965 $ 21,352 33.9 % U.K. Operations 14,946 13,812 1,134 8.2 % U.S. Concrete Waste Management Services 15,640 11,040 4,600 41.7 % Corporate 625 625 - 0.0 % Intersegment (634 ) (689 ) 55 -8.0 % $ 114,894 $ 87,753 $ 27,141 30.9 % Year Ended October 31, Change (in thousands) 2022 2021 $ % U.S. Concrete Pumping $ 296,506 $ 229,475 $ 67,031 29.2 % U.K. Operations 54,926 48,098 6,828 14.2 % U.S. Concrete Waste Management Services 50,191 38,591 11,600 30.1 % Corporate 2,500 2,500 - 0.0 % Intersegment (2,831 ) (2,856 ) 25 -0.9 % $ 401,292 $ 315,808 $ 85,484 27.1 % Concrete Pumping Holdings, Inc.
Segment Adjusted EBITDA and Net Income (Loss)Net Income (Loss) Adjusted EBITDA Three Months Ended October 31, Three Months Ended October 31, (in thousands, except percentages) 2022 2021 2022 2021 $ Change % Change U.S. Concrete Pumping $ 2,769 $ 798 $ 23,360 $ 18,095 $ 5,265 29.1 % U.K. Operations 1,722 (1,281 ) 4,700 4,191 509 12.1 % U.S. Concrete Waste Management Services 3,693 2,218 7,605 5,374 2,231 41.5 % Corporate 348 1,697 624 625 (1 ) -0.2 % $ 8,532 $ 3,432 $ 36,289 $ 28,285 $ 8,004 28.3 % Net Income (Loss) Adjusted EBITDA Year Ended October 31, Year Ended October 31, (in thousands, except percentages) 2022 2021 2022 2021 $ Change % Change U.S. Concrete Pumping $ 6,541 $ (10,959 ) $ 77,523 $ 68,091 $ 9,432 13.9 % U.K. Operations 2,080 (1,028 ) 15,717 15,339 378 2.5 % U.S. Concrete Waste Management Services 8,898 5,500 22,838 18,411 4,427 24.0 % Corporate 11,157 (8,586 ) 2,499 2,501 (2 ) -0.1 % $ 28,676 $ (15,073 ) $ 118,577 $ 104,342 $ 14,235 13.6 % Concrete Pumping Holdings, Inc.
Quarterly Financial Performance(dollars in millions) Revenue Net Income (Loss) Adjusted EBITDA1 Capital Expenditures2 Adjusted EBITDA less Capital Expenditures Diluted Earnings Per Share Q1 2020 $ 74 $ (3 ) $ 24 $ 20 $ 4 $ (0.06 ) Q2 2020 $ 74 $ (59 ) $ 24 $ 4 $ 20 $ (1.06 ) Q3 2020 $ 77 $ 3 $ 30 $ 6 $ 24 $ 0.00 Q4 2020 $ 79 $ (2 ) $ 30 $ 6 $ 24 $ (0.06 ) Q1 2021 $ 70 $ (12 ) $ 22 $ 8 $ 15 $ (0.24 ) Q2 2021 $ 77 $ (11 ) $ 25 $ 5 $ 20 $ (0.21 ) Q3 2021 $ 81 $ 5 $ 28 $ 17 $ 11 $ 0.07 Q4 2021 $ 88 $ 3 $ 28 $ 27 $ 1 $ 0.05 Q1 2022 $ 85 $ 1 $ 24 $ 35 $ (11 ) $ 0.01 Q2 2022 $ 96 $ 6 $ 28 $ 22 $ 5 $ 0.10 Q3 2022 $ 105 $ 13 $ 30 $ 19 $ 11 $ 0.22 Q4 2022 $ 115 $ 9 $ 37 $ 48 $ (11 ) $ 0.14 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” below for a reconciliation of such measure to its most comparable GAAP measure.
2 Total capital expenditures for the 2022 fiscal year was approximately $124 million which includes approximately $36 million of replacement capex.
*Q4 2022 capex includes approximately $31 million M&A and $13 million growth investment.
*Q3 2022 capex includes approximately $7 million growth investment.
*Q2 2022 capex includes approximately $11 million M&A and $5 million growth investment.
*Q1 2022 capex includes approximately $19 million M&A and $2 million growth investment.Concrete Pumping Holdings, Inc.
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDAThree Months Ended October 31, Year Ended October 31, (dollars in thousands) 2022 2021 2022 2021 Consolidated Net income (loss) $ 8,532 $ 3,432 $ 28,676 $ (15,073 ) Interest expense, net 6,765 6,107 25,891 25,190 Income tax expense 2,991 3,468 5,526 2,642 Depreciation and amortization 14,957 14,220 57,462 55,906 EBITDA 33,245 27,227 117,555 68,665 Transaction expenses 259 117 318 312 Loss on debt extinguishment - - - 15,510 Stock based compensation 870 1,311 5,034 6,591 Change in fair value of warrant liabilities - (1,301 ) (9,894 ) 9,894 Other income, net (19 ) (32 ) (88 ) (117 ) Other adjustments1 1,934 963 5,652 3,487 Adjusted EBITDA $ 36,289 $ 28,285 $ 118,577 $ 104,342 U.S. Concrete Pumping Net income (loss) $ 2,769 $ 798 $ 6,541 $ (10,959 ) Interest expense, net 6,089 5,313 22,968 22,031 Income tax expense (benefit) 2,207 1,469 2,465 (956 ) Depreciation and amortization 10,689 9,496 40,304 37,381 EBITDA 21,754 17,076 72,278 47,497 Transaction expenses 259 117 318 312 Loss on debt extinguishment - - - 15,510 Stock based compensation 870 1,311 5,034 6,591 Other income, net (6 ) - (49 ) (42 ) Other adjustments1 483 (409 ) (58 ) (1,777 ) Adjusted EBITDA $ 23,360 $ 18,095 $ 77,523 $ 68,091 U.K. Operations Net income (loss) $ 1,722 $ (1,281 ) $ 2,080 $ (1,028 ) Interest expense, net 676 794 2,923 3,159 Income tax expense (benefit) (252 ) 1,707 (130 ) 1,759 Depreciation and amortization 1,817 2,114 7,709 8,238 EBITDA 3,963 3,334 12,582 12,128 Transaction expenses - - - - Loss on debt extinguishment - - - - Stock based compensation - - - - Other income, net (4 ) (15 ) (15 ) (53 ) Other adjustments 741 872 3,150 3,264 Adjusted EBITDA $ 4,700 $ 4,191 $ 15,717 $ 15,339 U.S. Concrete Waste Management Services Net income $ 3,693 $ 2,218 $ 8,898 $ 5,500 Interest expense, net - - - - Income tax expense 971 276 2,803 1,486 Depreciation and amortization 2,240 2,397 8,601 9,447 EBITDA 6,904 4,891 20,302 16,433 Transaction expenses - - - - Loss on debt extinguishment - - - - Stock based compensation - - - - Other income, net (9 ) (17 ) (24 ) (22 ) Other adjustments 710 500 2,560 2,000 Adjusted EBITDA $ 7,605 $ 5,374 $ 22,838 $ 18,411 Corporate Net income (loss) $ 348 $ 1,697 $ 11,157 $ (8,586 ) Interest expense, net - - - - Income tax expense 65 16 388 353 Depreciation and amortization 211 213 848 840 EBITDA 624 1,926 12,393 (7,393 ) Transaction expenses - - - - Loss on debt extinguishment - - - - Stock based compensation - - - - Change in fair value of warrant liabilities - (1,301 ) (9,894 ) 9,894 Other income, net - - - - Other adjustments1 - - - - Adjusted EBITDA $ 624 $ 625 $ 2,499 $ 2,501 1 Other adjustments includes the adjustment for warrant liabilities revaluation, restructuring costs, director costs, public company expense, extraordinary expenses and gain/loss on currency transactions. Starting in the first quarter of fiscal 2023, we will modify the method in which Adjusted EBITDA is calculated by no longer including in "Other adjustments" an add-back for director costs (which were $2.0 million in 2022 and $2.4 million in 2021) or expenses related to being a publicly-traded company (which were $0.5 million in both 2022 and 2021).
Concrete Pumping Holdings, Inc.
Reconciliation of Net DebtOctober 31, January 31, April 30, July 31, October 31, Change in Net Debt (in thousands) 2021 2022 2022 2022 2022 Q4'21 to Q4 '22 YoY Senior Notes 375,000 375,000 375,000 375,000 375,000 - - Revolving loan draws outstanding 990 16,208 29,867 16,884 52,133 35,249 51,143 Less: Cash (9,298 ) (2,787 ) (2,670 ) (2,445 ) (7,482 ) (5,037 ) 1,816 Net debt 366,692 388,421 402,197 389,439 419,652 30,213 52,960 
