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Concrete Pumping Holdings Reports Third Quarter Fiscal Year 2024 Results
Источник: Nasdaq GlobeNewswire / 04 сен 2024 15:05:00 America/Chicago
DENVER, Sept. 04, 2024 (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 third quarter ended July 31, 2024.
Third Quarter Fiscal Year 2024 Summary vs. Third Quarter of Fiscal Year 2023 (unless otherwise noted)
● Revenue of $109.6 million compared to $120.7 million. ● Gross profit of $44.5 million compared to $49.5 million. ● Income from operations of $16.6 million compared to $19.5 million. ● Net income of $7.6 million compared to $10.3 million. ● Net income attributable to common shareholders of $7.1 million or $0.13 per diluted share and net income margin of 6.9%, compared to $9.9 million or $0.18 per diluted share and net income margin of 8.6%. ● Adjusted EBITDA1 of $31.6 million compared to $34.9 million, with Adjusted EBITDA margin1 of 28.8% compared to 28.9%. ● Amounts outstanding under debt agreements were $375.0 million with net debt1 of $348.7 million. Total available liquidity was $236.3 million as of July 31, 2024, compared to $195.5 million as of July 31, 2023. Management Commentary
“In the third quarter, continued organic growth in our U.S. Concrete Waste Management business was offset by a series of factors that impacted volume-driven declines in our U.S. Concrete Pumping segment,” said CPH CEO Bruce Young. “Historic rainfall in Texas and across the southeast region, together with ongoing restrictive monetary policy, curtailed construction volumes for the quarter. Higher interest rates have impacted the timing of more rate-sensitive commercial projects, and higher commercial building vacancy rates have delayed project starts on new build projects. Meanwhile, our Concrete Waste Management business continued to grow at an impressive double-digit rate, driven by healthy market share growth and our ability to improve pricing. We expect the tailwinds in this business to continue."
“Despite the weaker overall demand environment, we continue to strengthen our balance sheet by paying down debt and preserving our free cash flow and Adjusted EBITDA margin. This speaks to our strong financial profile and unit economics, as well as our disciplined approach to managing our fleet. While we expect the demand environment to remain variable in the final quarter of our fiscal year, we believe our scale, the strength of our balance sheet and our robust liquidity has us positioned to drive strong shareholder returns as the commercial end market recovers.”
1 Adjusted EBITDA, Adjusted EBITDA margin, net debt and leverage ratio 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.
Third Quarter Fiscal Year 2024 Financial Results
Revenue in the third quarter of fiscal year 2024 was $109.6 million compared to $120.7 million in the third quarter of fiscal year 2023. The decrease was mostly attributable to a decline in the Company’s U.S. Concrete Pumping segment due to a slowdown in commercial construction work, an oversaturation of concrete pumps in certain markets and higher than normal rainfall throughout the quarter in certain markets. This was partially offset by continued strong growth in the Concrete Waste Management Services segment.
Gross profit in the third quarter of fiscal year 2024 was $44.5 million compared to $49.5 million in the prior year quarter. Gross margin was 40.6% compared to 41.0% in the prior year quarter, primarily related to lower revenue in the Company's U.S. Concrete Pumping segment and higher depreciation expense, offset by improved labor, fuel and repair and maintenance costs.
General and administrative expenses in the third quarter decreased to $27.9 million compared to $29.9 million in the prior year quarter. The decrease was largely due to non-cash decreases in amortization expense of $1.0 million, stock-based compensation of $0.3 million and lower labor costs of approximately $0.8 million. As a percentage of revenue, G&A costs were 25.5% in the third quarter compared to 24.8% in the prior year quarter.
Net income in the third quarter of fiscal year 2024 was $7.6 million compared to $10.3 million in the prior year quarter. Net income attributable to common shareholders in the third quarter of fiscal year 2024 was $7.1 million, or $0.13 per diluted share, compared to $9.9 million, or $0.18 per diluted share, in the prior year quarter.
Adjusted EBITDA in the third quarter of fiscal year 2024 decreased to $31.6 million compared to $34.9 million in the prior year quarter due to the lower revenue and gross profit, as discussed above. Adjusted EBITDA margin was 28.8% compared to the prior year quarter at 28.9%.
Liquidity
On July 31, 2024, the Company had debt outstanding of $375.0 million, net debt of $348.7 million and total available liquidity of $236.3 million.
Segment Results
U.S. Concrete Pumping. Revenue in the third quarter of fiscal 2024 decreased to $75.2 million compared to $87.3 million in the prior year quarter. The decrease was primarily attributable to lower volumes caused by a general slowdown in commercial construction work, mostly due to the price sensitive impact on project starts from high interest rates, oversaturation of concrete pumps in certain markets and higher than normal rainfall in the Company's southeast regions and historically high rainfall in the Company's Texas markets. Net income in the third quarter of fiscal year 2024 decreased to $3.5 million compared to $3.8 million in the prior year quarter. Adjusted EBITDA was $20.1 million in the third quarter of fiscal year 2024 compared to $22.7 million in the prior year quarter, largely driven by the revenue decline.
U.K. Operations. Revenue in the third quarter of fiscal year 2024 decreased to $15.9 million compared to $17.3 million in the prior year quarter. Excluding the impact from foreign currency translation, revenue was down 9% year-over-year due to lower volumes caused by a general slowdown in commercial construction work, mostly due to the impact from high interest rates. Net income in the third quarter of fiscal year 2024 decreased to $0.9 million compared to $1.6 million in the prior year quarter. Adjusted EBITDA was $4.2 million in the third quarter of fiscal year 2024 compared to $4.8 million in the prior year quarter due to lower volumes caused by a general slowdown in commercial construction work, mostly due to the impact from high interest rates, partially offset by a reduction in repair costs.
U.S. Concrete Waste Management Services. Revenue in the third quarter of fiscal year 2024 increased 15% to $18.5 million compared to $16.1 million in the prior year quarter, driven by robust organic growth and pricing improvements. Net income in the third quarter of fiscal year 2024 decreased to $3.1 million compared to $4.0 million in the prior year quarter. Adjusted EBITDA in the third quarter of fiscal year 2024 decreased 2% to $7.3 million compared to $7.5 million in the prior year quarter as inflationary increases in labor and higher corporate allocations more than offset the impact to net income and Adjusted EBITDA from the increase in revenue.
Fiscal Year 2024 Outlook
The Company now expects fiscal year 2024 revenue to range between $420.0 million and $430.0 million, Adjusted EBITDA to range between $108.0 million and $113.0 million and free cash flow2 of at least $67.0 million. The Company expects to end fiscal year 2024 with a leverage ratio3 of approximately 3.0x.
2 Free cash flow is defined as Adjusted EBITDA less net replacement capital expenditures and cash paid for interest.
3 Leverage ratio defined as net debt divided by Adjusted EBITDA over the trailing four quarters.Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its third quarter 2024 results.
Date: Wednesday, September 4, 2024
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: 13748082Please 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=1681388&tp_key=226d5223a0 and via the investor relations section of the Company’s website at www.concretepumpingholdings.com. Prior to the conference call, an updated investor presentation will be available on the investor relations section of the Company's website.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through September 11, 2024.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13748082About 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, 2024, the Company provided concrete pumping services in the U.S. from a footprint of approximately 100 branch locations across 21 states, concrete pumping services in the U.K. from approximately 30 branch locations, and route-based concrete waste management services from 20 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 2024 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 on our business; adverse weather conditions; the outcome of any legal proceedings, rulings 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. 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.
EBITDA is calculated by taking GAAP net income and adding back interest expense and amortization of deferred financing costs, income tax expense, and depreciation and amortization. Adjusted EBITDA is calculated by taking EBITDA and adding back loss on debt extinguishment, stock-based compensation, changes in the fair value of warrant liabilities, other expense (income), net, goodwill and intangibles impairment and other adjustments. Other adjustments include non-recurring expenses, non-cash currency gains/losses, transaction expenses and interest income. Transaction expenses represent expenses for legal, accounting, and other professionals that were engaged in the completion of various acquisitions. Transaction expenses can be volatile as they are primarily driven by the size of a specific acquisition. As such, the Company excludes these amounts from Adjusted EBITDA for comparability across periods.
The Company believes these non-GAAP measures of financial results provide useful supplemental information to management and investors regarding certain financial and business trends related to our financial condition and results of operations, and as a supplemental tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial measures with competitors who also present similar non-GAAP financial measures. In addition, these measures (1) are used in quarterly and annual financial reports and presentations prepared for management, our board of directors and investors, and (2) help management to determine incentive compensation. EBITDA and Adjusted EBITDA have limitations and should not be considered in isolation or as a substitute for performance measures calculated under GAAP. These non-GAAP measures exclude certain cash expenses that the Company is obligated to make. In addition, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently or may not calculate it at all, which limits the usefulness of EBITDA and Adjusted EBITDA as comparative measures. 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.
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.
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 tax expense 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 Group, Inc.
Cody Slach
1-949-574-3860
BBCP@gateway-grp.comConcrete Pumping Holdings, Inc.
Condensed Consolidated Balance SheetsAs of July 31, As of October 31, (in thousands, except per share amounts) 2024 2023 Current assets: Cash and cash equivalents $ 26,333 $ 15,861 Receivables, net of allowance for doubtful accounts of $1,076 and $978, respectively 56,214 62,976 Inventory 6,568 6,732 Prepaid expenses and other current assets 13,357 8,701 Total current assets 102,472 94,270 Property, plant and equipment, net 423,486 427,648 Intangible assets, net 109,253 120,244 Goodwill 222,964 221,517 Right-of-use operating lease assets 26,734 24,815 Other non-current assets 4,392 14,250 Deferred financing costs 1,489 1,781 Total assets $ 890,790 $ 904,525 Current liabilities: Revolving loan $ - $ 18,954 Operating lease obligations, current portion 4,800 4,739 Finance lease obligations, current portion - 125 Accounts payable 7,914 8,906 Accrued payroll and payroll expenses 14,795 14,524 Accrued expenses and other current liabilities 38,745 34,750 Income taxes payable 356 1,848 Warrant liability, current portion - 130 Total current liabilities 66,610 83,976 Long term debt, net of discount for deferred financing costs 372,912 371,868 Operating lease obligations, non-current 22,243 20,458 Finance lease obligations, non-current - 50 Deferred income taxes 84,050 80,791 Other liabilities, non-current 5,299 14,142 Total liabilities 551,114 571,285 Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of July 31, 2024 and October 31, 2023 25,000 25,000 Stockholders' equity Common stock, $0.0001 par value, 500,000,000 shares authorized, 53,748,023 and 54,757,445 issued and outstanding as of July 31, 2024 and October 31, 2023, respectively 6 6 Additional paid-in capital 385,229 383,286 Treasury stock (22,275 ) (15,114 ) Accumulated other comprehensive loss (617 ) (5,491 ) Accumulated deficit (47,667 ) (54,447 ) Total stockholders' equity 314,676 308,240 Total liabilities and stockholders' equity $ 890,790 $ 904,525 Concrete Pumping Holdings, Inc.
Condensed Consolidated Statements of OperationsThree Months Ended July 31, Nine Months Ended July 31, (in thousands, except per share amounts) 2024 2023 2024 2023 Revenue $ 109,617 $ 120,671 $ 314,390 $ 322,037 Cost of operations 65,112 71,187 194,804 192,625 Gross profit 44,505 49,484 119,586 129,412 Gross margin 40.6 % 41.0 % 38.0 % 40.2 % General and administrative expenses 27,880 29,937 89,450 87,236 Income from operations 16,625 19,547 30,136 42,176 Interest expense and amortization of deferred financing costs (6,318 ) (7,066 ) (19,744 ) (21,285 ) Change in fair value of warrant liabilities - 911 130 6,639 Interest income 58 - 148 - Other income (expense), net 276 262 360 296 Income (loss) before income taxes 10,641 13,654 11,030 27,826 Income tax expense 3,081 3,318 4,250 5,427 Net income (loss) 7,560 10,336 6,780 22,399 Less preferred shares dividends (440 ) (441 ) (1,310 ) (1,309 ) Income (loss) available to common shareholders $ 7,120 $ 9,895 $ 5,470 $ 21,090 Weighted average common shares outstanding Basic 53,699 53,199 53,556 53,377 Diluted 53,775 54,105 54,191 54,263 Net income per common share Basic $ 0.13 $ 0.18 $ 0.10 $ 0.38 Diluted $ 0.13 $ 0.18 $ 0.10 $ 0.38 Concrete Pumping Holdings, Inc.
Condensed Consolidated Statements of Cash FlowsFor the Nine Months Ended July 31, (in thousands, except per share amounts) 2024 2023 Net income $ 6,780 $ 22,399 Adjustments to reconcile net income to net cash provided by operating activities: Non-cash operating lease expense 3,841 3,526 Foreign currency adjustments (890 ) (1,421 ) Depreciation 31,345 29,541 Deferred income taxes 2,693 4,140 Amortization of deferred financing costs 1,336 1,414 Amortization of intangible assets 11,482 14,336 Stock-based compensation expense 1,917 3,138 Change in fair value of warrant liabilities (130 ) (6,639 ) Net gain on the sale of property, plant and equipment (1,412 ) (1,472 ) Other operating activities 72 (93 ) Net changes in operating assets and liabilities: Receivables 7,227 (3,199 ) Inventory 301 (970 ) Other operating assets (551 ) (875 ) Accounts payable (1,668 ) (2,050 ) Other operating liabilities 2,131 4,457 Net cash provided by operating activities 64,474 66,232 Cash flows from investing activities: Purchases of property, plant and equipment (37,484 ) (43,166 ) Proceeds from sale of property, plant and equipment 7,472 8,043 Purchases of intangible assets - (800 ) Net cash used in investing activities (30,012 ) (35,923 ) Cash flows from financing activities: Proceeds on revolving loan 230,398 239,911 Payments on revolving loan (249,352 ) (256,345 ) Purchase of treasury stock (7,161 ) (9,679 ) Other financing activities 1,343 (81 ) Net cash provided by (used in) financing activities (24,772 ) (26,194 ) Effect of foreign currency exchange rate changes on cash 782 485 Net increase (decrease) in cash and cash equivalents 10,472 4,600 Cash and cash equivalents: Beginning of period 15,861 7,482 End of period $ 26,333 $ 12,082 Concrete Pumping Holdings, Inc.
Segment RevenueThree Months Ended July 31, Change (in thousands, unless otherwise stated) 2024 2023 $ % U.S. Concrete Pumping 75,213 $ 87,323 $ (12,110 ) (13.9 )% U.K. Operations 15,859 17,260 (1,401 ) (8.1 )% U.S. Concrete Waste Management Services - Third parties 18,545 16,088 2,457 15.3 % U.S. Concrete Waste Management Services - Intersegment 87 417 (330 ) * Intersegment eliminations (87 ) (417 ) 330 * Reportable segment revenue $ 109,617 $ 120,671 $ (11,054 ) (9.2 )% *Change is not meaningful
Nine Months Ended July 31, Change (in thousands, unless otherwise stated) 2024 2023 $ % U.S. Concrete Pumping $ 216,514 $ 232,896 $ (16,382 ) (7.0 )% U.K. Operations 46,813 45,207 1,606 3.6 % U.S. Concrete Waste Management Services - Third parties 51,063 43,934 7,129 16.2 % U.S. Concrete Waste Management Services - Intersegment 331 511 (180 ) * Intersegment eliminations (331 ) (511 ) 180 * Reportable segment revenue $ 314,390 $ 322,037 $ (7,647 ) (2.4 )% * Change is not meaningful
Concrete Pumping Holdings, Inc. Segment Adjusted EBITDA and Net Income (Loss) During the first quarter of fiscal year 2024, the Company moved certain assets and associated revenues and expenses, which were previously categorized in the Company's Other activities, into the U.S. Concrete Pumping segment in order to better align their placement with the manner in which the Company now allocates resources and measures performance. As a result, segment results for prior periods have been reclassified to conform to the current period presentation. In addition, in order to appropriately distribute the use of corporate resources and better align measures with segment performance, beginning in the first quarter of fiscal year 2024, the Company is no longer adding back intercompany allocations to segment Adjusted EBITDA. The Company recast of segment results for the three and nine months ended July 31, 2023 is included below:
Three Months Ended July 31, 2023 Nine Months Ended July 31, 2023 (in thousands) U.S. Concrete Pumping U.K. Operations U.S. Concrete Waste Management Services Other U.S. Concrete Pumping U.K. Operations U.S. Concrete Waste Management Services Other As Previously Reported Net income (loss) $ 3,517 $ 1,616 $ 3,986 $ 1,217 $ 2,867 $ 2,449 $ 9,526 $ 7,557 Income tax expense 1,318 545 1,352 103 1,026 831 3,257 313 Depreciation and amortization 10,498 1,879 2,114 216 31,464 5,555 6,214 644 EBITDA 21,670 4,769 7,452 1,536 54,520 10,957 18,997 8,514 Other Adjustments (1,817 ) 803 737 - (5,054 ) 2,415 2,211 - Adjusted EBITDA 20,535 5,566 8,190 625 52,363 13,349 21,208 1,875 Recast Adjustment Net income (loss) $ 306 $ - $ - $ (306 ) $ 918 $ - $ - $ (918 ) Income tax expense (benefit) 103 - - (103 ) 313 - - (313 ) Depreciation and amortization 216 - - (216 ) 644 - - (644 ) EBITDA 625 - - (625 ) 1,875 - - (1,875 ) Other Adjustments 1,511 (774 ) (737 ) - 4,533 (2,322 ) (2,211 ) - Adjusted EBITDA 2,136 (774 ) (737 ) (625 ) 6,408 (2,322 ) (2,211 ) (1,875 ) Current Report As Adjusted Net income $ 3,823 $ 1,616 $ 3,986 $ 911 $ 3,785 $ 2,449 $ 9,526 $ 6,639 Income tax expense 1,421 545 1,352 - 1,339 831 3,257 - Depreciation and amortization 10,714 1,879 2,114 - 32,108 5,555 6,214 - EBITDA 22,295 4,769 7,452 911 56,395 10,957 18,997 6,639 Other Adjustments (306 ) 29 - - (521 ) 93 - - Adjusted EBITDA 22,671 4,792 7,453 - 58,771 11,027 18,997 - Concrete Pumping Holdings, Inc.
Segment Adjusted EBITDA and Net Income (Loss) ContinuedNet Income (Loss) Adjusted EBITDA Three Months Ended July 31, Three Months Ended July 31, (in thousands, unless otherwise stated) 2024 2023 2024 2023 $ Change % Change U.S. Concrete Pumping $ 3,535 $ 3,823 $ 20,100 $ 22,671 $ (2,571 ) (11.3 )% U.K. Operations 905 1,616 4,228 4,792 (564 ) (11.8 )% U.S. Concrete Waste Management Services 3,120 3,986 7,310 7,453 (143 ) (1.9 )% Other - 911 - - - 0.0 % Total $ 7,560 $ 10,336 $ 31,638 $ 34,916 $ (3,278 ) (9.4 )% Net Income (Loss) Adjusted EBITDA Nine Months Ended July 31, Nine Months Ended July 31, (in thousands, unless otherwise stated) 2024 2023 2024 2023 $ Change % Change U.S. Concrete Pumping $ (4,309 ) $ 3,785 $ 48,029 $ 58,771 $ (10,742 ) (18.3 )% U.K. Operations 2,433 2,449 11,567 11,027 540 4.9 % U.S. Concrete Waste Management Services 8,526 9,526 18,871 18,997 (126 ) (0.7 )% Other 130 6,639 - - - 0.0 % Total $ 6,780 $ 22,399 $ 78,467 $ 88,795 $ (10,328 ) (11.6 )% 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 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 Q4 2023 $ 120 $ 9 $ 36 $ 8 $ 28 $ 0.16 Q1 2024 $ 98 $ (4 ) $ 19 $ 17 $ 3 $ (0.08 ) Q2 2024 $ 107 $ 3 $ 28 $ 7 $ 21 $ 0.05 Q3 2024 $ 110 $ 8 $ 32 $ 6 $ 26 $ 0.13 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” above for a discussion of the definition of this measure and reconciliation of such measure to its most comparable GAAP measure. 2Information on M&A or growth investments included in net capital expenditures have been included for relevant quarters below: *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 $3 million growth investment. *Q4 2023 capex includes approximately $3 million growth investment. *Q1 2024 capex includes approximately $5 million growth investment. *Q2 2024 capex includes approximately $1 million M&A and $3 million growth investment. *Q3 2024 capex includes approximately $4 million growth investment. Concrete Pumping Holdings, Inc.
Reconciliation of Net Income to Reported EBITDA to Adjusted EBITDAThree Months Ended July 31, Nine Months Ended July 31, (dollars in thousands) 2024 2023 2024 2023 Consolidated Net income $ 7,560 $ 10,336 $ 6,780 $ 22,399 Interest expense and amortization of deferred financing costs 6,318 7,066 19,744 21,285 Income tax expense 3,081 3,318 4,250 5,427 Depreciation and amortization 14,491 14,707 42,827 43,877 EBITDA 31,450 35,427 73,601 92,988 Stock based compensation 644 934 1,917 3,138 Change in fair value of warrant liabilities - (911 ) (130 ) (6,639 ) Other expense (income), net (276 ) (262 ) (360 ) (296 ) Other adjustments(1) (180 ) (272 ) 3,439 (396 ) Adjusted EBITDA $ 31,638 $ 34,916 $ 78,467 $ 88,795 U.S. Concrete Pumping Net income (loss) $ 3,535 $ 3,823 $ (4,309 ) $ 3,785 Interest expense and amortization of deferred financing costs 5,585 6,337 17,577 19,163 Income tax expense (benefit) 1,162 1,421 (426 ) 1,339 Depreciation and amortization 9,874 10,714 30,374 32,108 EBITDA 20,156 22,295 43,216 56,395 Stock based compensation 644 934 1,917 3,138 Other expense (income), net (252 ) (257 ) (279 ) (273 ) Other adjustments(1) (448 ) (301 ) 3,175 (489 ) Adjusted EBITDA $ 20,100 $ 22,671 $ 48,029 $ 58,771 U.K. Operations Net income $ 905 $ 1,616 $ 2,433 $ 2,449 Interest expense and amortization of deferred financing costs 733 729 2,167 2,122 Income tax expense 436 545 1,210 831 Depreciation and amortization 1,907 1,879 5,564 5,555 EBITDA 3,981 4,769 11,374 10,957 Other expense (income), net (21 ) (6 ) (71 ) (23 ) Other adjustments 268 29 264 93 Adjusted EBITDA $ 4,228 $ 4,792 $ 11,567 $ 11,027 (1) Other adjustments include the adjustment for non-recurring expenses and non-cash currency gains/losses. For the nine months ended July 31, 2024, other adjustments includes a $3.5 million non-recurring charge related to sales tax litigation.
Three Months Ended July 31, Nine Months Ended July 31, (dollars in thousands) 2024 2023 2024 2023 U.S. Concrete Waste Management Services Net income $ 3,120 $ 3,986 $ 8,526 $ 9,526 Income tax expense 1,483 1,352 $ 3,466 $ 3,257 Depreciation and amortization 2,710 2,114 $ 6,889 $ 6,214 EBITDA 7,313 7,452 18,881 18,997 Other expense (income), net (3 ) 1 (10 ) - Adjusted EBITDA $ 7,310 $ 7,453 $ 18,871 $ 18,997 Other Net income $ - $ 911 $ 130 $ 6,639 EBITDA - 911 130 6,639 Change in fair value of warrant liabilities - (911 ) (130 ) (6,639 ) Adjusted EBITDA $ - $ - $ - $ - Concrete Pumping Holdings, Inc.
Reconciliation of Net DebtJuly 31, October 31, January 31, April 30, July 31, (in thousands) 2023 2023 2024 2024 2024 Senior Notes 375,000 375,000 375,000 375,000 375,000 Revolving loan draws outstanding 35,699 18,954 13,021 16,428 - Less: Cash (11,532 ) (15,861 ) (14,688 ) (17,956 ) (26,333 ) Net debt $ 399,167 $ 378,093 $ 373,333 $ 373,472 $ 348,667 Concrete Pumping Holdings, Inc.
Reconciliation of Historical Adjusted EBITDA(dollars in thousands) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Consolidated Net income (loss) $ 5,588 $ 10,336 $ 9,391 $ (3,826 ) $ 3,046 $ 7,560 Interest expense and amortization of deferred financing costs 7,348 7,066 6,834 6,463 6,873 6,318 Income tax expense (benefit) 1,465 3,318 3,345 (1,011 ) 2,180 3,081 Depreciation and amortization 14,721 14,707 14,789 14,097 14,239 14,491 EBITDA 29,122 35,427 34,359 15,723 26,338 31,450 Transaction expenses 24 5 29 - - - Stock based compensation 1,064 934 709 536 737 644 Change in fair value of warrant liabilities (1,172 ) (911 ) (260 ) (130 ) - - Other expense (income), net (13 ) (262 ) (34 ) (39 ) (44 ) (276 ) Other adjustments(1) (192 ) (277 ) 1,002 3,191 517 (180 ) Adjusted EBITDA $ 28,833 $ 34,916 $ 35,805 $ 19,281 $ 27,548 $ 31,638 (1) Other adjustments include the adjustment for non-recurring expenses and non-cash currency gains/losses. For the first quarter of fiscal year 2024, other adjustments includes a $3.5 million non-recurring charge related to sales tax litigation.