Business
Limbach Holdings, Inc. Reports First Quarter 2022 Results
Revenue from Owner Direct Relationships Segment (“ODR”) up 50.3% year-over-year ODR Segment Accounted for Approximately 54.4% of Consolidated Gross Profit
About this update from Limbach Holdings, Inc.
[{"type":"text","content":"\nRevenue from Owner Direct Relationships Segment (“ODR”) up 50.3% year-over-year\n\nODR Segment Accounted for Approximately 54.4% of Consolidated Gross Profit\n\nConference Call Scheduled for 9:00 am ET on May 11, 2022\n\n WARRENDALE, Pa.--(BUSINESS WIRE)--\nLimbach Holdings, Inc. (Nasdaq: LMB) today announced its financial results for the quarter ended March 31, 2022. The company reported consolidated revenue of $114.8 million, which was an improvement of 1.3% compared to the first quarter of 2021. Gross margins improved to 16.0% from 15.2% for the first quarter of 2021 and drove a $1.1 million increase in gross profit year-over-year. ODR segment revenue accounted for 37.4% of consolidated revenue in the first quarter of 2022 while contributing approximately 54.4% of consolidated gross profit. We believe that the continued shift in revenue mix to the ODR segment provides for greater revenue stability and higher gross margins.\n\nCharlie Bacon, Limbach’s President and Chief Executive Officer, said, “Our first quarter 2022 results demonstrate strong execution in transitioning the business model toward a greater focus on serving the needs of facility owners. Year-over-year, we generated significant growth in revenue and gross profit dollars in the ODR segment, while also driving stronger gross margins in the GCR segment due to improved project selection and execution. While the first quarter has historically been the company’s weakest quarter seasonally, profitability nonetheless improved year-over-year. As we’ve previously communicated, we continue to believe that business activity will be back half-loaded similar to what we saw in 2021. The demand picture in our target verticals, such as healthcare, data centers, R&D and industrial, continues to be strong, with project sales well ahead of where they were at this time last year. ODR backlog grew from $98.0 million to $106.9 million at the end of the quarter, up 9.1% from December 31, 2021 and 102.3% from March 31, 2021. We currently expect the majority of this backlog will be recognized as revenue this year.”\n\nMr. Bacon continued, “The ODR segment continues to account for an increasing proportion of total revenue, and an even greater proportion of gross profit. In the first quarter, the ODR segment contributed more than 50% of total gross profit for the first time. In addition...