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Jul 31, 2024
CPH Q3 2024 Earnings Report
CPH's third quarter of fiscal year 2024 results were reported, showing a decrease in revenue due to challenges in the U.S. Concrete Pumping segment, partially offset by growth in the Concrete Waste Management Services segment. Net income and Adjusted EBITDA also decreased compared to the prior year quarter.
Key Takeaways
Concrete Pumping Holdings reported a decrease in revenue for Q3 2024, driven by a slowdown in the U.S. Concrete Pumping segment due to adverse weather and economic conditions, which was partially offset by growth in the Concrete Waste Management Services segment. Net income and Adjusted EBITDA also decreased. The company is focused on debt reduction and maintaining liquidity.
Revenue decreased to $109.6 million compared to $120.7 million in the prior year quarter.
Net income decreased to $7.6 million from $10.3 million in the prior year quarter.
Adjusted EBITDA decreased to $31.6 million compared to $34.9 million in the prior year quarter.
U.S. Concrete Waste Management Services revenue increased by 15%.
CPH
CPH
CPH Revenue by Segment
Revenue by Segment
US Concrete Pumping Revenue
CapyFin.comUS Concrete Waste Mgmt Revenue
CapyFin.comUK Operations Revenue
CapyFin.com Forward Guidance
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 flow of at least $67.0 million. The Company expects to end fiscal year 2024 with a leverage ratio of approximately 3.0x.
Positive Outlook
- Fiscal year 2024 revenue expected to range between $420.0 million and $430.0 million.
- Adjusted EBITDA expected to range between $108.0 million and $113.0 million.
- Free cash flow of at least $67.0 million is anticipated.
- Leverage ratio is expected to be approximately 3.0x at the end of fiscal year 2024.
- Company's scale, balance sheet strength and robust liquidity positions it to drive strong shareholder returns as the commercial end market recovers.
Challenges Ahead
- Demand environment expected to remain variable in the final quarter of the fiscal year.
- Historic rainfall in Texas and across the southeast region curtailed construction volumes for the quarter.
- Ongoing restrictive monetary policy impacted volume results in the U.S. Concrete Pumping segment.
- Higher interest rates have impacted the timing of more rate-sensitive commercial projects.
- Higher commercial building vacancy rates have delayed project starts on new build projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income