Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Investor Presentation (March 2023)
22 slides from Limbach's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
NASDAQ: LMB INVESTOR PRESENTATION March 2023 1
Slide 2: Forward Looking Statements
Forward Looking Statements We make forward-looking statements in this presentation within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements relate to expectations or forecasts for future events, including, without limitation, the execution of the
Slide 3: Limbach At-A-Glance
Limbach At-A-Glance WHO WE ARE Limbach is a building systems solutions firm that delivers, maintains, and optimizes mission-critical MEP building infrastructure. WHAT WE DO FY 2022: • Provide essential services – mechanical, electrical, plumbing and building automation design, engineering, installat
Slide 4: Investment Highlights
Investment Highlights Strong Sector Building owners are increasingly focused on ROIC, including maintenance and Tailwinds retrofit of existing facilities, driving demand for facilities service capabilities. We provide full life-cycle capabilities that combine our disciplined approach with Evolving,
Slide 5: Creating Value in Strong Primary End Markets
Creating Value in Strong Primary End Markets MISSION-CRITICAL MARKETS WE SERVE END MARKET ATTRIBUTES ✔ Favorable demographic support Ex. – Aging population driving healthcare spending Healthcare Data Centers Industrial & Light ✔ Supportive secular trends Manufacturing Ex. – Supply chain issues have
Slide 6: An Evolving Building Systems Solutions Firm
An Evolving Building Systems Solutions Firm LMB Goes Public Strategy Solidified Around ODR SPAC combination Collecting facility data to provide building with 1347 Investors Emphasis on owners with proactive and predictive ODR expected to account NASDAQ: LMB solutions to enhance our value. for the ma
Slide 7: Our Differentiated Business Model
Our Differentiated Business Model General Contractor Relationships Owner Director Relationships (“GCR”) (“ODR”) Manage new construction or renovation projects that involve Maintenance or service primarily on HVAC, plumbing, electrical primarily HVAC, plumbing, or electrical services awarded to syste
Slide 8: Carving Our Own Path as an Indispensable Partner
Carving Our Own Path as an Indispensable Partner Specialty Consulting Contractors & Eng. Firms ON OUR PATH TO BECOME AN INDISPENSABLE PARTNER We provide full life-cycle capabilities that Property combine our disciplined approach with OEM Firms engineered solutions and craft expertise Managers enabli
Slide 9: Driving Recurring Revenue & Margin Expansion
Driving Recurring Revenue & Margin Expansion TRADITIONAL CONTRACTORS OWNER-DIRECT BUILDING (Legacy Peers) SYSTEMS SOLUTIONS FIRMS • Primarily single-instance construction • Significant recurring revenue directly projects from building owners • Typical EV/EBITDA multiples: • Typical EV/EBITDA multipl
Slide 10: Driving Long-Term ODR Margin Expansion – An Illustration
Driving Long-Term ODR Margin Expansion – An Illustration Key Initiative: Drive ODR Customer Accounts to the Right Data Reliance Low Higher Margins Margins Stages REACTIVE ACCOUNTABLE PROACTIVE TRUSTED ADVISOR INDISPENSABLE (Transactional) ● Service Calls ● Maintenance Work & ● Capital Project ● Cons
Slide 11: Expanding Our Position: Disciplined Approach
Expanding Our Position: Disciplined Approach MULTI-YEAR STRATEGY CURRENT & TARGET GEOGRAPHIES • Leverage existing operations & resources • Accelerate growth in high margin business • Expand into adjacent geographic markets • Remain agile / focus on sectors experiencing strength and growth States wit
Slide 12: Expanding Our Position: Disciplined Approach To Improve Margins
Expanding Our Position: Disciplined Approach To Improve Margins ACQUISITION CRITERIA: POST-ACQUISITION APPROACH TO IMPROVE QUALITY • Geographic proximity Data-Driven Decision Making • Supports ODR strategy - Risk management tools and data - Enable timely decisions and predicting of outcomes early in
Slide 13: Thoughtful Capital Allocation
Thoughtful Capital Allocation Balance Sheet Adjusted EBITDA1 Smart & disciplined with a focus on maximum flexibility at low cost Target Conversion Flexible & Agile of 70% M&A Capital Stringent acquisition Management gating criteria providing a FCF2 curated list of targets Opportunistic share that wo
Slide 14: FY 2023 Financial Guidance
FY 2023 Financial Guidance1 FY 2023 Guidance3 Metric: Low High Revenue $490 million – $520 million Adjusted EBITDA2 $33 million – $37 million Upcoming IR Conference Calendar Event Dates Location ROTH Conference March 12 - 15 Dana Point, CA EF Hutton Conference May 10 - 11 New York, NY 1. Provided as
Slide 15: Investment Summary
Investment Summary We serve a variety of mission-critical end markets, many of which are expected Strong Sector to continue experiencing solid, growing demand for construction, service and Tailwinds maintenance of physical assets over the next several years Evolving, Differentiated Continued focus o
Slide 16: Appendix
APPENDIX
Slide 17: Operating and Financial Update: 4Q'22 Quarterly Performance
Operating and Financial Update 4Q’22 Quarterly Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR GCR ODR $143.5 $29.2 $11.6 $25.5 (20.4%) $126.8 (20.1%) $64.0 $9.5 $39.1 $17.3 $11.1 $87.7 $79.5 $14.4 $11.9 4Q'21 4Q'22 4Q'21 4Q'22 4Q'21 4Q'22 Year-Over-Year Year-Over-Year Year-
Slide 18: Operating and Financial Update: FY 2022 Performance
Operating and Financial Update FY 2022 Year to Date Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR $31.8 GCR ODR $93.7 $85.9 (18.9%) (17.5%) $490.3 $496.8 $55.1 $23.3 $40.5 $140.3 $216.4 $350.0 $45.4 $280.4 $38.6 FY'21 FY'22 FY'21 FY'22 FY'21 FY'22 Year-Over-Year Year-Over-
Slide 19: Operating and Financial Update: Reduced Leverage
Operating and Financial Update Reduced Leverage from 2021 & Continuing Improvements in Capitalization Key Balance Sheet Items December 31, 20221 December 31, 20211 Cash and Cash Equivalents $36.0 $14.5 Current Assets $226.0 $192.9 Current Liabilities $159.1 $129.7 Working Capital $66.9 $63.2 Net (Ov
Slide 20: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table For the Three Months and Years Ended December 31, 2022 and 2021 Reconciliation of Net Income to Adjusted EBITDA Three Months Ended December 31, For the Years Ended December 31, (in thousands) 2022 2021 2022 2021 Net income $ 3,808 $ 4,278 $ 6,799 $ 6,714 Adjustments: De
Slide 21: Additional Modeling Considerations for FY 2023
Additional Modeling Considerations for FY 2023 Metric Comment FY 2023 Segment Revenue Mix 50 / 50 GCR Revenue Change Targeted annual single digit contraction ODR Revenue Change Targeted annual growth in “low teens” GCR Gross Margin Targeted 12% to 15% ODR Gross Margin Targeted 25% to 28% Free Cash F
Slide 22: Contact Us
Contact Us INVESTOR RELATIONS Jeremy Hellman, CFA Vice President (212) 836-9626 / jhellman@equityny.com
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