Business
Shimmick Corporation Announces First Quarter 2024 Results
IRVINE, Calif., May 13, 2024 (GLOBE NEWSWIRE) -- Shimmick Corp. (NASDAQ: SHIM), a leading water infrastructure company, today announced financial results for
About this update from Shimmick Corporation
[{"type":"text","content":"IRVINE, Calif., May 13, 2024 (GLOBE NEWSWIRE) -- Shimmick Corp. (NASDAQ: SHIM), a leading water infrastructure company, today announced financial results for the first quarter ended March 29, 2024. First Quarter 2024 and Recent Highlights Reported revenue of $120 million, which includes $90 million of Shimmick Projects revenueReported a net loss of $33 million with an Adjusted EBITDA loss of $24 millionContinue to work down legacy backlog with revenue of $23 million, a decline from $56 million last year with a negative gross margin of $11 million, reflecting increases in the estimated cost to complete and ongoing legal costsAnnounced the sale of the assets related to non-core foundation drilling projects and an equipment yard that will raise approximately $39 million and reduce future capital expendituresBacklog is over $1.0 billion as of March 29, 2024, with 83% being Shimmick ProjectsWon several jobs in quarter including new ozonation water project and drainage system for over 10,000 acres. Shimmick will announce it expects to delay the filing of its Quarterly Report on Form 10-Q as a result of, among other things, on-going negotiations with MidCap regarding compliance with certain covenants under the Revolving Credit Facility. See “MidCap Credit Facility and Delay in 10-Q Filing” below. “Our first quarter results were adversely impacted by the timing of projects starts and delays and additional costs associated with the legacy loss projects,” said Steve Richards, Chief Executive Officer of Shimmick. “While we still have work to do, we are making progress in simplifying and evolving the business as evident by recent actions taken to sell non-core assets and continue to wind down our existing Legacy Projects, which weighed on gross margins this quarter. These activities will position us well for a more focused water business with better growth and profitability in the future.\" A summary of our results is included in the table below: Three Months Ended (In millions, except per share data)March 29, 2024 March 31, 2023 Change Revenue$120 $164 $(44)Gross margin (16) 6 (22)Net loss attributable to Shimmick Corporation (33) (9) (24)Adjusted net loss (29) (5) (24)Adjusted EBITDA (24) (1) (23)Diluted loss per common share attributable to Shimmick Corporation (1.30) (0.43) (0.87)Adjusted diluted loss per common share attributable to Sh...