Business
Limbach Holdings Reports Third Quarter 2020 Results
Third Quarter 2020 Revenue Increases 10.6% over prior year; Diluted EPS of $0.31; Third Quarter Net Cash Provided by Operating Activities of $12.8 million
About this update from Limbach Holdings, Inc.
[{"type":"text","content":"\nThird Quarter 2020 Revenue Increases 10.6% over prior year; Diluted EPS of $0.31; Third Quarter Net Cash Provided by Operating Activities of $12.8 million\n\nIncreasing Adjusted EBITDA Guidance for Fiscal 2020\n\nConference Call Scheduled for 10:00 am ET on November 12, 2020\n\n PITTSBURGH--(BUSINESS WIRE)--\nLimbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended September 30, 2020. Revenue for the third quarter increased 10.6% from the prior year period to $163.9 million. Gross margin in the quarter was 14.8%, an increase of 235 basis points as compared to the same period during fiscal year 2019. Greater gross profit combined with moderate growth in selling, general and administrative expenses resulted in net income of $2.5 million and Adjusted EBITDA of $8.8 million which reflects Adjusted EBITDA growth of more than twice the prior year period amount. The Company generated strong cash flow, with net cash provided by operating activities of $12.8 million in the quarter.\n\nThe following are key financial highlights of the third quarter. All comparisons are to the third quarter of 2019, unless noted otherwise.\n\n\nConstruction segment revenue of $130.5 million increased 10.2% driven by growth in the Michigan, Ohio, and New England operating regions, offset by revenue declines in the Florida, Southern California and Eastern Pennsylvania regions. Service segment revenue of $33.4 million increased 12.3%, driven by growth in the Florida, Mid-Atlantic and Western Pennsylvania regions, offset by a revenue decline in the Michigan region.\n\n\nGross margin increased to 14.8% from 12.4%, primarily as a result of improved project execution in the Construction segment and improved pricing and business mix in the Service segment. Gross margin in the Service segment was 27.9% representing an increase of 360 basis points.\n\n\nSG&A expense in the third quarter increased approximately $0.4 million to $17.0 million as compared to $16.6 million as the Company continued to invest in Service segment and owner-direct sales and execution resources. That growth in SG&A expense was offset by a decline in Construction segment and Corporate SG&A which reflects the continuing effort to identify cost reductions undertaken earlier in the calendar year. As a percent of revenue, SG&A e...