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Sep 30, 2020
Limbach Q3 2020 Earnings Report
Revenue increased by 10.6% year-over-year, with diluted EPS of $0.31 and net cash provided by operating activities of $12.8 million.
Key Takeaways
Limbach Holdings reported a 10.6% increase in revenue for the third quarter of 2020, reaching $163.9 million. The company's net income was $2.5 million, with diluted EPS of $0.31. Net cash provided by operating activities was $12.8 million. Adjusted EBITDA guidance for fiscal year 2020 was increased.
Construction segment revenue increased by 10.2%, driven by growth in the Michigan, Ohio, and New England operating regions.
Service segment revenue increased by 12.3%, driven by growth in the Florida, Mid-Atlantic, and Western Pennsylvania regions.
Gross margin increased to 14.8% from 12.4%, primarily due to improved project execution in the Construction segment and improved pricing and business mix in the Service segment.
Net income was $2.5 million compared to a net loss of $(3.0) million in the prior year period.
Limbach
Limbach
Forward Guidance
The company is increasing its Adjusted EBITDA guidance from a range of $22-24 million to a range of $23-26 million and maintaining revenue guidance of $560-600 million.
Positive Outlook
- Continuing improvement in execution in the Construction segment.
- Older, lower-margin projects are being replaced with higher margin opportunities.
- Pleased with the quality and quantity of mid-size and large project opportunities being negotiated and booked into backlog.
- Sequential growth in the Service segment.
- Another quarter of cash flow generation and improvement in working capital and liquidity.
Challenges Ahead
- Economic uncertainties.
- Political uncertainties.
- Public-health uncertainties.
- Potential impact on the Company in the fourth quarter of the year from a resurgence of COVID-19.
- Backlog decreased compared to December 31, 2019.