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Shimmick Corporation Announces Second Quarter 2024 Results - Provides Update on Transformation Plan
IRVINE, Calif., Aug. 15, 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., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Shimmick Corp. (NASDAQ: SHIM), a leading water infrastructure company, today announced financial results for the second quarter ended June 28, 2024. Second Quarter 2024 and Recent Highlights A settlement agreement on litigation on one of the two Legacy Loss Projects (a federal lock and dam project) which will result in $33 million in additional liquidity and eliminates the cost and distraction of prolonged litigationReported revenue of $91 million, which includes $84 million of Shimmick Projects revenue and a $23 million reduction in Legacy Projects revenue associated with the settlementReported a net loss of $51 million with an Adjusted EBITDA loss of $40 million which includes a $30 million reduction in Legacy Projects gross margin associated with the settlementBacklog is over $923 million as of June 28, 2024, with over 80% being Shimmick ProjectsWon a new cogeneration system replacement projectCompleted sale of our Tracy Equipment Yard with net proceeds used to paydown debtContinued to execute on Transformation plan Legacy Project Settlement and Sale of Tracy Equipment Yard On August 8, 2024, the Company entered into a settlement agreement involving change orders and additional compensation sought for a federal lock and dam project. Pursuant to the settlement agreement, the United States Army Corps of Engineers agreed to pay the Company $33 million, which is expected to be collected in fiscal year 2024. By entering into the settlement, the Company avoided the legal fees and distraction associated with several years of expected litigation. The settlement amount is recorded in contract assets within the condensed consolidated balance sheets. As a result of the settlement and previously estimated contract revenue, the Company recognized a net loss of $30 million on the project, which includes a $23 million reduction to revenue and a $7 million adjustment to the forward loss reserve, within the condensed consolidated statements of operations for the three and six months ended June 28, 2024. The Company continues to pursue the litigation on the second of the two large Legacy Loss Projects with a trial scheduled for later this year. On August 9, 2024, we completed the previously disclosed transaction for the sale-leaseback of our equipment yard in Tracy, California. The agreement co...