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Concrete Pumping Holdings Reports Strong Third Quarter Fiscal Year 2022 Results

·25 min read
Concrete Pumping Holdings, Inc.
Concrete Pumping Holdings, Inc.

Revenue Growth of 29%, Raises Full-Year Revenue Outlook

DENVER, Sept. 08, 2022 (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 quarter ended July 31, 2022.

Third Quarter Fiscal Year 2022 Summary vs. Third Quarter Fiscal Year 2021 (unless otherwise noted)

  • Revenue increased 29.4% or $23.7 million to $104.5 million compared to $80.8 million.

  • Gross profit increased 16.4% or $6.1 million to $43.3 million compared to $37.2 million.

  • Net income available to common shareholders increased to $14.1 million or $0.24 per diluted share compared to $4.1 million or $0.07 per diluted share.

  • Adjusted EBITDA1 increased 14.7% to $32.6 million compared to $28.5 million, with Adjusted EBITDA margin of 31.2% compared to 35.2%.

  • Amounts outstanding under debt agreements was $391.9 million, with net debt1 of $389.4 million. Total available liquidity at quarter end was $134.1 million.

Management Commentary

“The third quarter marks our fourth consecutive quarter of double-digit revenue growth across all our segments, which we consider a testament to the strength and resilience of our business,” said CPH CEO Bruce Young. “Driving these results was strong organic growth in our commercial end-market due to volume and rate improvements, the contribution from recent accretive acquisitions, and continued momentum in our Eco-Pan business. Rising inflation, particularly in diesel fuel, was a headwind that persisted in the quarter, but we remained successful in recalibrating our rates.

“We also continued to execute upon our organic and M&A growth strategies. In late July, we undertook a greenfield expansion strategy in Washington D.C., an area that has experienced robust growth over the past decade. In August, we strengthened our presence with the acquisition of Coastal Carolina Pumping, Inc., the largest concrete pumping service provider in the Carolinas. We expect to deliver value creation using the same proven approach we have taken with our previous acquisitions.

“Heading into the final quarter of our fiscal year, we expect our sales momentum to continue due to the strength in our end-markets and our diverse business model. While inflationary headwinds have started to ease somewhat since the end of our third quarter, we believe we have proven the inelastic nature of our high-value service, which has us well positioned for 2023 and beyond.”

______________
1 Adjusted EBITDA 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 definition of the non-GAAP financial measures used in this release and a reconciliation to the most comparable GAAP measure.

Third Quarter Fiscal Year 2022 Financial Results

Revenue in the third quarter of fiscal year 2022 increased 29.4% to $104.5 million compared to $80.8 million in the third quarter of fiscal year 2021. The increase was primarily attributable to double-digit growth across each of the Company’s segments. Excluding an aggregate of $7.2 million of revenue contribution from the acquisitions of Hi-Tech Concrete Pumping Services (Hi-Tech) and Pioneer Concrete Pumping Service, Inc. (Pioneer) in the third quarter of 2022, organic revenue growth for the quarter increased 20.4% to $97.3 million.

Gross profit in the third quarter of fiscal year 2022 increased 16.4% to $43.3 million compared to $37.2 million in the third quarter of fiscal year 2021. Gross margin was 41.5% compared to 46.1% in the prior year quarter due to inflationary pressures, primarily in the price of diesel fuel.

G&A expenses in the third quarter of fiscal year 2022 were $27.2 million compared to $25.0 million in the third quarter of 2021. As a percentage of revenue, G&A expenses improved to 26.1% in the third quarter of 2022 compared to 30.9% in the third quarter of 2021. The increase in G&A expenses was primarily due to: (1) higher labor and health insurance costs of approximately $1.2 million and $0.4 million, respectively, primarily due to additional personnel that joined the Company as a result of recent acquisitions and (2) an additional $0.4 million related to fluctuations in the Pound Sterling. This was offset slightly by lower amortization of intangible assets expense of $1.2 million.

Net income available to common shareholders in the third quarter of 2022 improved to $14.1 million, or $0.24 per diluted share, compared to net income of $4.1 million or $0.07 per diluted share in the prior year quarter. The improvement was due to the increase in gross profit and a $7.2 million year-over-year change in fair value of warrant liabilities, which reflected a gain of $7.4 million in the third quarter of 2022 as compared to a gain of $0.3 million in the third quarter of fiscal 2021.

Adjusted EBITDA in the third quarter of fiscal year 2022 increased 14.7% to $32.6 million compared to $28.5 million in the third quarter of fiscal year 2021. Adjusted EBITDA margin was 31.2% compared to 35.2% in the prior year quarter. The decrease was primarily attributable to inflationary pressures.

Liquidity

On July 31, 2022, the Company had debt outstanding of $391.9 million, net debt of $389.4 million and total available liquidity of $134.1 million. This reflects the amendment of the Company's existing ABL credit agreement during the third fiscal quarter to provide up to $160.0 million ($125.0 million previously) of commitments.

Segment Results

U.S. Concrete Pumping. Revenue in the third quarter of fiscal 2022 increased 33.3% to $77.4 million compared to $58.0 million in the year-ago quarter. The improvement was primarily driven by revenue generated from Hi-Tech and Pioneer, which were acquired in the fourth quarter of fiscal 2021 and the first quarter of fiscal 2022, respectively, which collectively contributed $7.2 million in revenue in the third quarter. Supplemental revenue growth was a result of organic improvements in volume and rate per hour increases. Net income in the third quarter of fiscal 2022 improved to $4.3 million compared to $1.8 million in the prior year third quarter. Adjusted EBITDA in the third quarter of fiscal 2022 increased 21.6% to $22.4 million compared to $18.4 million in the year-ago quarter.

U.K. Operations. Revenue in the third quarter of fiscal 2022 increased 14.0% to $14.4 million compared to $12.7 million in the year-ago quarter. Excluding the impact from foreign currency fluctuations, revenue would have been up 28.4% from the prior year quarter. Net income in the third quarter of fiscal 2022 was $0.4 million, unchanged compared to the prior year third quarter. Adjusted EBITDA in the third quarter of fiscal 2022 was $4.0 million compared to $4.1 million in the year-ago quarter.

U.S. Concrete Waste Management Services. Revenue in the third quarter of fiscal 2022 increased 26.6% to $12.8 million compared to $10.1 million in the year-ago quarter. The double-digit improvement was a result of organic growth, rate per hour improvements and continued pandemic recovery trends. Net income in the third quarter of fiscal 2022 improved to $2.0 million compared to $1.8 million in the prior year third quarter. Adjusted EBITDA in the third quarter of fiscal 2022 increased 6.5% to $5.7 million compared to $5.3 million in the year-ago quarter.

Management Promotions

Building on its continued strong growth, the Company is announcing the following internal promotions.

Mark Young has been promoted to president of US Concrete Pumping. He previously held the title of general manager of Brundage-Bone, a position he held since 2018. Young brings over 15 years of construction industry experience.

Casey Mendenhall has been promoted to president of Eco-Pan to support this segment’s strong expansion. He has over 25 years of experience in various sectors of the concrete pumping industry and has served as Eco-Pan general manager since 2019.

Commenting on the promotions, CPH CEO Bruce Young said: “Both Mark and Casey are perfect examples of the depth of experience we have on our great team. They have been instrumental in driving growth in their respective businesses, and we look forward to their contributions in these well-deserved new roles.”

Fiscal Year 2022 Outlook

The Company now expects fiscal year 2022 revenue to range between $380.0 million to $390.0 million (versus the $360.0 million to $370.0 million announced in our second quarter earnings release). Adjusted EBITDA is expected to range between $115.0 million to $120.0 million, and free cash flow2 is expected to range between $55.0 million and $60.0 million.

_____________
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 third quarter 2022 results.

Date: Thursday September 8, 2022
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: 13732403

Please 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 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 September 29, 2022.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13732403

About 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, 2022, the Company provided concrete pumping services in the U.S. from a footprint of approximately 95 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.

ForwardLooking 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 2022 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 events related to these conditions, such as the ongoing war in Ukraine and the COVID-19 pandemic, on our business, including fluctuations in fuel costs; 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. 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 provided to 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. Adjusted EBITDA is not pro forma for acquisitions. 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 senior notes 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. Replacement capital expenditures are investments in replacing existing equipment. 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
1-303-289-7497

Investor Relations:
Gateway Group, Inc.
Cody Slach
1-949-574-3860
BBCP@gatewayir.com


 

Concrete Pumping Holdings, Inc.

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

July 31,

 

 

October 31,

 

(in thousands)

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,445

 

 

$

9,298

 

Trade receivables, net

 

 

58,815

 

 

 

49,034

 

Inventory

 

 

5,006

 

 

 

4,902

 

Income taxes receivable

 

 

391

 

 

 

275

 

Prepaid expenses and other current assets

 

 

5,678

 

 

 

4,110

 

Total current assets

 

 

72,335

 

 

 

67,619

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

385,247

 

 

 

337,771

 

Intangible assets, net

 

 

141,467

 

 

 

158,539

 

Goodwill

 

 

221,615

 

 

 

224,700

 

Other non-current assets

 

 

1,975

 

 

 

2,168

 

Deferred financing costs

 

 

1,829

 

 

 

1,868

 

Total assets

 

$

824,468

 

 

$

792,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Revolving loan

 

$

16,884

 

 

$

990

 

Current portion of capital lease obligations

 

 

108

 

 

 

103

 

Accounts payable

 

 

9,063

 

 

 

10,706

 

Accrued payroll and payroll expenses

 

 

9,334

 

 

 

12,226

 

Accrued expenses and other current liabilities

 

 

35,998

 

 

 

23,940

 

Income taxes payable

 

 

219

 

 

 

274

 

Total current liabilities

 

 

71,606

 

 

 

48,239

 

 

 

 

 

 

 

 

 

 

Long term debt, net of discount for deferred financing costs

 

 

370,128

 

 

 

369,084

 

Capital lease obligations, less current portion

 

 

196

 

 

 

278

 

Deferred income taxes

 

 

72,182

 

 

 

70,566

 

Warrant liability

 

 

7,030

 

 

 

16,923

 

Total liabilities

 

$

521,142

 

 

$

505,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of July 31, 2022 and October 31, 2021

 

 

25,000

 

 

 

25,000

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value, 500,000,000 shares authorized, 56,599,833 and 56,564,642 issued and outstanding as of July 31, 2022 and October 31, 2021, respectively

 

 

6

 

 

 

6

 

Additional paid-in capital

 

 

378,481

 

 

 

374,272

 

Treasury stock

 

 

(1,856

)

 

 

(461

)

Accumulated other comprehensive income (loss)

 

 

(5,056

)

 

 

3,671

 

Accumulated deficit

 

 

(93,249

)

 

 

(114,913

)

Total stockholders' equity

 

 

278,326

 

 

 

262,575

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

824,468

 

 

$

792,665

 

 

 

 

 

 

 

 

 

 


 

Concrete Pumping Holdings, Inc.

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

Three Months Ended July 31,

 

 

Nine Months Ended July 31,

 

(in thousands, except share and per share amounts)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

104,469

 

 

$

80,761

 

 

$

286,398

 

 

$

228,054

 

Cost of operations

 

 

61,135

 

 

 

43,548

 

 

 

170,000

 

 

 

127,676

 

Gross profit

 

 

43,334

 

 

 

37,213

 

 

 

116,398

 

 

 

100,378

 

Gross margin

 

 

41.5

%

 

 

46.1

%

 

 

40.6

%

 

 

44.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

27,227

 

 

 

24,951

 

 

 

82,497

 

 

 

73,812

 

Transaction costs

 

 

20

 

 

 

111

 

 

 

59

 

 

 

195

 

Income from operations

 

 

16,087

 

 

 

12,151

 

 

 

33,842

 

 

 

26,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(6,517

)

 

 

(6,153

)

 

 

(19,126

)

 

 

(19,082

)

Loss on extinguishment of debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(15,510

)

Change in fair value of warrant liabilities

 

 

7,420

 

 

 

260

 

 

 

9,894

 

 

 

(11,195

)

Other income, net

 

 

16

 

 

 

32

 

 

 

69

 

 

 

85

 

Income (loss) before income taxes

 

 

17,006

 

 

 

6,290

 

 

 

24,679

 

 

 

(19,331

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

2,510

 

 

 

1,652

 

 

 

3,015

 

 

 

(826

)

Net income (loss)

 

 

14,496

 

 

 

4,638

 

 

 

21,664

 

 

 

(18,505

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less accretion of liquidation preference on preferred stock

 

 

(441

)

 

 

(525

)

 

 

(1,309

)

 

 

(1,530

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) available to common shareholders

 

$

14,055

 

 

$

4,113

 

 

$

20,355

 

 

$

(20,035

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

54,012,404

 

 

 

53,522,089

 

 

 

53,859,874

 

 

 

53,377,032

 

Diluted

 

 

57,286,563

 

 

 

54,547,494

 

 

 

54,772,441

 

 

 

53,377,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.25

 

 

$

0.07

 

 

$

0.36

 

 

$

(0.38

)

Diluted

 

$

0.24

 

 

$

0.07

 

 

$

0.35

 

 

$

(0.38

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Concrete Pumping Holdings, Inc.

Consolidated Statements of Cash Flows

 

 

 

 

 

 

For the Nine Months Ended July 31,

 

(in thousands)

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

21,664

 

 

$

(18,505

)

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

 

 

 

 

 

 

 

 

Depreciation

 

 

25,547

 

 

 

21,169

 

Deferred income taxes

 

 

2,690

 

 

 

(1,417

)

Amortization of deferred financing costs

 

 

1,374

 

 

 

1,877

 

Amortization of intangible assets

 

 

16,958

 

 

 

20,517

 

Stock-based compensation expense

 

 

4,164

 

 

 

5,280

 

Change in fair value of warrant liabilities

 

 

(9,894

)

 

 

11,195

 

Loss on extinguishment of debt

 

 

-

 

 

 

15,510

 

Net gain on the sale of property, plant and equipment

 

 

(1,460

)

 

 

(1,125

)

Net changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Trade receivables, net

 

 

(10,784

)

 

 

475

 

Inventory

 

 

(265

)

 

 

122

 

Prepaid expenses and other current assets

 

 

(1,206

)

 

 

(1,331

)

Income taxes payable, net

 

 

(171

)

 

 

750

 

Accounts payable

 

 

(2,311

)

 

 

(93

)

Accrued payroll, accrued expenses and other current liabilities

 

 

7,421

 

 

 

5,920

 

Net cash provided by operating activities

 

 

53,727

 

 

 

60,344

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(80,967

)

 

 

(34,558

)

Proceeds from sale of property, plant and equipment

 

 

6,197

 

 

 

5,070

 

Purchases of intangible assets

 

 

(1,450

)

 

 

-

 

Net cash used in investing activities

 

 

(76,220

)

 

 

(29,488

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds on long term debt

 

 

-

 

 

 

375,000

 

Payments on long term debt

 

 

-

 

 

 

(381,206

)

Proceeds on revolving loan

 

 

252,925

 

 

 

201,125

 

Payments on revolving loan

 

 

(236,856

)

 

 

(202,977

)

Payment of debt issuance costs

 

 

(290

)

 

 

(8,464

)

Payments on capital lease obligations

 

 

(76

)

 

 

(72

)

Purchase of treasury stock

 

 

(1,394

)

 

 

(330

)

Proceeds on exercise of options

 

 

45

 

 

 

-

 

Net cash provided by (used in) financing activities

 

 

14,354

 

 

 

(16,924

)

Effect of foreign currency exchange rate on cash

 

 

1,286

 

 

 

(464

)

Net increase (decrease) in cash and cash equivalents

 

 

(6,853

)

 

 

13,468

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Beginning of period

 

 

9,298

 

 

 

6,736

 

End of period

 

$

2,445

 

 

$

20,204

 

 

 

 

 

 

 

 

 

 


Concrete Pumping Holdings, Inc.
Segment Revenue

 

 

Three Months Ended July 31,

 

 

Change

 

(in thousands)

 

2022

 

 

2021

 

 

 

$

 

 

%

 

U.S. Concrete Pumping

 

 

77,352

 

 

$

58,025

 

 

$

19,327

 

 

 

33.3

%

U.K. Operations

 

 

14,417

 

 

 

12,652

 

 

 

1,765

 

 

 

14.0

%

U.S. Concrete Waste Management Services

 

 

12,813

 

 

 

10,122

 

 

 

2,691

 

 

 

26.6

%

Corporate

 

 

625

 

 

 

625

 

 

 

-

 

 

 

0.0

%

Intersegment

 

 

(738

)

 

 

(663

)

 

 

(75

)

 

 

11.3

%

 

 

$

104,469

 

 

$

80,761

 

 

$

23,708

 

 

 

29.4

%


 

 

Nine Months Ended July 31,

 

 

Change

 

(in thousands)

 

2022

 

 

2021

 

 

 

$

 

 

%

 

U.S. Concrete Pumping

 

$

212,189

 

 

$

166,509

 

 

$

45,680

 

 

 

27.4

%

U.K. Operations

 

 

39,980

 

 

 

34,285

 

 

 

5,695

 

 

 

16.6

%

U.S. Concrete Waste Management Services

 

 

34,551

 

 

 

27,552

 

 

 

6,999

 

 

 

25.4

%

Corporate

 

 

1,875

 

 

 

1,875

 

 

 

-

 

 

 

0.0

%

Intersegment

 

 

(2,197

)

 

 

(2,167

)

 

 

(30

)

 

 

1.4

%

 

 

$

286,398

 

 

$

228,054

 

 

$

58,344

 

 

 

25.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Concrete Pumping Holdings, Inc.
Segment Adjusted EBITDA and Net Income (Loss)

 

 

Net Income (Loss)

 

 

Adjusted EBITDA

 

 

 

Three Months Ended July 31,

 

 

Three Months Ended July 31,

 

 

Change

 

(in thousands, except percentages)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

$

 

 

%

 

U.S. Concrete Pumping

 

$

4,332

 

 

$

1,844

 

 

$

22,379

 

 

$

18,403

 

 

$

3,976

 

 

 

21.6

%

U.K. Operations

 

 

441

 

 

 

384

 

 

 

3,955

 

 

 

4,087

 

 

 

(132

)

 

 

-3.2

%

U.S. Concrete Waste Management Services

 

 

2,010

 

 

 

1,832

 

 

 

5,681

 

 

 

5,334

 

 

 

347

 

 

 

6.5

%

Corporate

 

 

7,713

 

 

 

578

 

 

 

625

 

 

 

625

 

 

 

-

 

 

 

0.0

%

 

 

$

14,496

 

 

$

4,638

 

 

$

32,640

 

 

$

28,449

 

 

$

4,191

 

 

 

14.7

%


 

 

Net Income (Loss)

 

 

Adjusted EBITDA

 

 

 

Nine Months Ended July 31,

 

 

Nine Months Ended July 31,

 

 

Change

 

(in thousands, except percentages)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

$

 

 

%

 

U.S. Concrete Pumping

 

$

5,292

 

 

$

(11,759

)

 

$

56,163

 

 

$

49,995

 

 

$

6,168

 

 

 

12.3

%

U.K. Operations

 

 

358

 

 

 

254

 

 

 

11,017

 

 

 

10,948

 

 

 

69

 

 

 

0.6

%

U.S. Concrete Waste Management Services

 

 

5,205

 

 

 

3,282

 

 

 

15,233

 

 

 

13,037

 

 

 

2,196

 

 

 

16.8

%

Corporate

 

 

10,809

 

 

 

(10,282

)

 

 

1,875

 

 

 

1,877

 

 

 

(2

)

 

 

-0.1

%

 

 

$

21,664

 

 

$

(18,505

)

 

$

84,288

 

 

$

75,857

 

 

$

8,431

 

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Concrete Pumping Holdings, Inc.

Quarterly Financial Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

Revenue

 

 

Net Income
(Loss)

 

 

Adjusted
EBITDA
1

 

 

Capital
Expenditures
2

 

 

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

 

 

$

23

 

 

$

5

 

 

$

0.10

 

Q3 2022

 

$

104

 

 

$

14

 

 

$

33

 

 

$

14

 

 

$

19

 

 

$

0.24

 

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 Capital expenditures included $10.6 million of cash outflows related to growth investment for the fiscal 2022 second quarter, $19.1 million related to growth investments for the fiscal 2022 first quarter and $5.9 million and $14.1 million related to growth investments for the fiscal 2021 third and fourth quarters, respectively.

 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Three Months Ended July 31,

 

 

Nine Months Ended July 31,

 

(dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

14,496

 

 

$

4,638

 

 

$

21,664

 

 

$

(18,505

)

Interest expense, net

 

 

6,517

 

 

 

6,153

 

 

 

19,126

 

 

 

19,082

 

Income tax expense (benefit)

 

 

2,510

 

 

 

1,652

 

 

 

3,015

 

 

 

(826

)

Depreciation and amortization

 

 

14,190

 

 

 

13,838

 

 

 

42,505

 

 

 

41,686

 

EBITDA

 

 

37,713

 

 

 

26,281

 

 

 

86,310

 

 

 

41,437

 

Transaction expenses

 

 

20

 

 

 

111

 

 

 

59

 

 

 

195

 

Loss on debt extinguishment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,510

 

Stock based compensation

 

 

1,333

 

 

 

1,258

 

 

 

4,164

 

 

 

5,280

 

Change in fair value of warrant liabilities

 

 

(7,420

)

 

 

(260

)

 

 

(9,894

)

 

 

11,195

 

Other income, net

 

 

(16

)

 

 

(32

)

 

 

(69

)

 

 

(85

)

Other adjustments

 

 

1,010

 

 

 

1,091

 

 

 

3,718

 

 

 

2,325

 

Adjusted EBITDA

 

$

32,640

 

 

$

28,449

 

 

$

84,288

 

 

$

75,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Concrete Pumping

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

4,332

 

 

$

1,844

 

 

$

5,292

 

 

$

(11,759

)

Interest expense, net

 

 

5,795

 

 

 

5,347

 

 

 

16,879

 

 

 

16,717

 

Income tax expense (benefit)

 

 

1,441

 

 

 

781

 

 

 

738

 

 

 

(2,424

)

Depreciation and amortization

 

 

9,927

 

 

 

9,206

 

 

 

29,615

 

 

 

27,885

 

EBITDA

 

 

21,495

 

 

 

17,178

 

 

 

52,524

 

 

 

30,419

 

Transaction expenses

 

 

20

 

 

 

111

 

 

 

59

 

 

 

195

 

Loss on debt extinguishment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,510

 

Stock based compensation

 

 

1,333

 

 

 

1,258

 

 

 

4,164

 

 

 

5,280

 

Other income, net

 

 

(6

)

 

 

(17

)

 

 

(43

)

 

 

(42

)

Other adjustments

 

 

(463

)

 

 

(127

)

 

 

(541

)

 

 

(1,367

)

Adjusted EBITDA

 

$

22,379

 

 

$

18,403

 

 

$

56,163

 

 

$

49,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.K. Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

441

 

 

$

384

 

 

$

358

 

 

$

254

 

Interest expense, net

 

 

722

 

 

 

806

 

 

 

2,247

 

 

 

2,365

 

Income tax expense

 

 

153

 

 

 

149

 

 

 

122

 

 

 

51

 

Depreciation and amortization

 

 

1,881

 

 

 

2,042

 

 

 

5,892

 

 

 

6,124

 

EBITDA

 

 

3,197

 

 

 

3,381

 

 

 

8,619

 

 

 

8,794

 

Transaction expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stock based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Other income, net

 

 

(5

)

 

 

(12

)

 

 

(11

)

 

 

(38

)

Other adjustments

 

 

763

 

 

 

718

 

 

 

2,409

 

 

 

2,192

 

Adjusted EBITDA

 

$

3,955

 

 

$

4,087

 

 

$

11,017

 

 

$

10,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Concrete Waste Management Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,010

 

 

$

1,832

 

 

$

5,205

 

 

$

3,282

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Income tax expense

 

 

796

 

 

 

626

 

 

 

1,832

 

 

 

1,210

 

Depreciation and amortization

 

 

2,170

 

 

 

2,379

 

 

 

6,361

 

 

 

7,050

 

EBITDA

 

 

4,976

 

 

 

4,837

 

 

 

13,398

 

 

 

11,542

 

Transaction expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stock based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Other income, net

 

 

(5

)

 

 

(3

)

 

 

(15

)

 

 

(5

)

Other adjustments

 

 

710

 

 

 

500

 

 

 

1,850

 

 

 

1,500

 

Adjusted EBITDA

 

$

5,681

 

 

$

5,334

 

 

$

15,233

 

 

$

13,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,713

 

 

$

578

 

 

$

10,809

 

 

$

(10,282

)

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Income tax expense

 

 

120

 

 

 

96

 

 

 

323

 

 

 

337

 

Depreciation and amortization

 

 

212

 

 

 

211

 

 

 

637

 

 

 

627

 

EBITDA

 

 

8,045

 

 

 

885

 

 

 

11,769

 

 

 

(9,318

)

Transaction expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stock based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Change in fair value of warrant liabilities

 

 

(7,420

)

 

 

(260

)

 

 

(9,894

)

 

 

11,195

 

Other income, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Other adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Adjusted EBITDA

 

$

625

 

 

$

625

 

 

$

1,875

 

 

$

1,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31,

 

 

April 30,

 

 

July 31,

 

 

October 31,

 

 

January 31,

 

 

April 30,

 

 

July 31,

 

 

Change in Net Debt

 

(in thousands)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2022

 

 

2022

 

 

2022

 

 

Q2'22 to Q3'22

 

 

YoY

 

Senior Notes

 

 

375,000

 

 

 

375,000

 

 

 

375,000

 

 

 

375,000

 

 

 

375,000

 

 

 

375,000

 

 

 

375,000

 

 

 

-

 

 

 

-

 

Revolving loan draws outstanding

 

 

7,687

 

 

 

1,087

 

 

 

-

 

 

 

990

 

 

 

16,208

 

 

 

29,867

 

 

 

16,884

 

 

 

(12,983

)

 

 

16,884

 

Less: Cash

 

 

(2,273

)

 

 

(13,714

)

 

 

(20,204

)

 

 

(9,298

)

 

 

(2,787

)

 

 

(2,670

)

 

 

(2,445

)

 

 

225

 

 

 

17,759

 

Net debt

 

 

380,414

 

 

 

362,373

 

 

 

354,796

 

 

 

366,692

 

 

 

388,421

 

 

 

402,197

 

 

 

389,439

 

 

 

(12,758

)

 

 

34,643