Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Investor Presentation (November 2022)
25 slides from Limbach's investor presentation, November 2022
Slide 1: An integrated building systems solutions firm
NASDAQ: LMB An integrated building systems solutions firm Essential ● Diverse ● Evolving INVESTOR PRESENTATION • NOVEMBER 2022
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 C
Slide 3: Limbach At-a-Glance
Limbach At-a-Glance WHO WE ARE K E Y DATA Limbach is an integrated building systems solutions firm. Share Price $7.57 WHAT WE DO Shares Outstanding 10.5 M We provide mechanical, electrical, plumbing and building automation Market Cap $79.7 design, engineering, installation, maintenance and energy ma
Slide 4: Unique, Complete Portfolio of MEP Services
Unique, Complete Portfolio of MEP Services Diverse and Essential Service Suite Allows Us to Drive Increased “Wallet Share” With Our Customers Virtual Design and Building Off Site / Emergency Engineering Construction Automation Pre-fabrication Commissioning 24/7 Response Estimating and Energy Facilit
Slide 5: Our Two Operating Segments
Our Two Operating Segments General Contractor Relationships Owner Director Relationships (“GCR”) (“ODR”) Hired by General Contractors to provide: Hired by Building Owners to provide: • Design services • Design services • Building construction • Pre-construction engineering • Commissioning • Energy e
Slide 6: Investment Highlights
Investment Highlights Strong Sector • Increased interest in “onshoring” of manufacturing by a variety of industries • Building owners increasingly focused on ROIC, including maintenance and retrofit of existing Tailwinds facilities, driving demand for facilities service capabilities Diverse Geograph
Slide 7: Rapid Response to Urgent Customer Needs
How We Are Essential Rapid Response to Urgent Customer Needs Who was the What was the Solution Business client? Challenge? Offered Impact Expediting Design & Hurricane Ian caused Program Construction to Allow for damage to facilities Management Reopening of Facilities 7
Slide 8: Design – Build – Maintain
GEOGRAPHY: Focused on Eastern Half of the USA Design – Build – Maintain SERVICES: Potential Acquisition Target States States with Branch Locations Diversified Structure Allows Us to Allocate Human Capital to Busier Market Sectors, Geographies, Services and Customers CUSTOMERS: SECTORS: PRIMARY MARKE
Slide 9: Evolving
Recession Resilient EVOLVING Over Our 120-Year History We Have Evolved to Meet the Dynamic Needs of Our Customers Revenue Mix that Strategic Goals for Targeted Acquisition Optimizes Returns ODR / GCR Strategy 9
Slide 10: Evolving ODR Strategy Provides Multiple Strategic Benefits
Evolving ODR Strategy Provides Multiple Strategic Benefits Working directly for building owners enables us to… General • Drive “Wallet Share” Expansion Contractors • Establish Recurring Revenue Streams Building • Earn Higher Margins Owners • Reduce Risk On Course to Achieve Strategic Goal of 50% / 5
Slide 11: Growth Strategy
Growth Strategy Aggressive Sales Strategy Invest to broaden our Owner Direct customer base and to deliver an expanded array of conventional and technical MEP construction and facility services to capture additional “wallet share” Drive Profitability by Optimizing Return on Labor Maximize financial r
Slide 12: ODR Growth is Accelerating – New Customers and Expansion of Wallet Share
ODR Growth is Accelerating – New Customers and Expansion of “Wallet Share” $ in millions Quarterly TTM ODR Revenue and Y/Y Growth Rate $225.00 50.00% $191.50 45.00% $175.00 $171.00 40.00% $154.69 $140.34 35.00% $136.57 $130.71 $127.23 $126.48 40.20% $125.00 30.00% 30.83% 25.00% 22.30% $75.00 20.00%
Slide 13: GCR Optimization – Reducing Risk, Improving Margins & Cash Flow
GCR Optimization – Reducing Risk, Improving Margins & Cash Flow Evaluating the optimal business mix on a bottom-up, branch-by-branch basis • Each of our local markets are unique • Right-sizing GCR is a function of a sharpened focus on higher margin work including; shifting resources from GCR to focu
Slide 14: Acquisition Strategy
Acquisition Strategy Multi-Year Strategy Target Geographies Acquisition Criteria → Leverage Existing → Geographic Proximity Operations and Resources → Supports ODR Strategy → Accelerate Growth in → Attractive Business Model High Margin Business Lines → Capability Expansion → Expand into Adjacent → T
Slide 15: Growing the Bottom-Line
Growing the Bottom-Line Our Transition to a Balanced Segment Model is Accelerating, Providing a Foundation for Improved Profitability and Cash Flow • As our mix shifts toward ODR, consolidated gross margin is reaching parity with our peers while improved overhead absorption is expected to drive prof
Slide 16: Investment Summary
Investment Summary We believe Limbach is well positioned in the current environment to capitalize on emerging trends in building infrastructure and system optimization, and to further increase earnings and enterprise value The unique combination and integration of professional services and field cap
Slide 17: Full Year 2022 Financial Guidance
Full Year 2022 Financial Guidance Low High Guidance Revenue $510 million – $530 million Adjusted EBITDA1 $27 million – $30 million Metric Comment FY 2022 GCR Revenue Projected $275 to $310 million FY 2022 ODR Revenue Projected $220 to $240 million Additional GCR Revenue Change (2023+) Targeted annua
Slide 18: Operating and Financial Update
OPERATING AND FINANCIAL UPDATE 18
Slide 19: Operating and Financial Update: 3Q'22 Quarterly Performance
Operating and Financial Update 3Q’22 Quarterly Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR GCR ODR $10.2 $24.5 $24.9 $129.2 (18.9%) (20.3%) $122.4 $8.1 $39.2 $11.7 $15.2 $59.7 $90.0 $12.8 $62.7 $9.7 3Q'21 3Q'22 3Q'21 3Q'22 3Q'21 3Q'22 Year-Over-Year Year-Over-Year Year-O
Slide 20: Operating and Financial Update: 3Q'22 Year to Date Performance
Operating and Financial Update 3Q’ 2022 Year to Date Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR GCR ODR $64.5 $60.4 (18.3%) $20.2 (16.6%) $363.5 $37.8 $353.3 $29.3 $101.2 $152.4 $13.7 $262.3 $200.9 $31.0 $26.7 9M'21 9M'22 9M'21 9M'22 9M'21 9M'22 Year-Over-Year Year-Over
Slide 21: Reduced Leverage from 2021 & Continuing Improvements in Capitalization
Operating and Financial Update Reduced Leverage from 2021 & Continuing Improvements in Capitalization Key Balance Sheet Items September 30, 20221 December 31, 20212 Cash and Cash Equivalents $28.4 $14.5 Current Assets $209.3 $192.9 Current Liabilities $146.0 $129.7 Working Capital $63.3 $63.2 Net (O
Slide 22: Appendix
APPENDIX C\LIMBACH
Slide 23: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table For the Three and Nine Months Ended September 30, 2022 and 2021 Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2022 2021 2022 2021 Net income $ 3,641 $ 3,986 $ 2,991 $ 2,436 Adjustments: De
Slide 24: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Enterprise Value Calculation1 Adjusted EBITDA Calculation1,3 Free Cash Flow Calculation1,3 TTM TTM September 30, September 30, September 30, 2022 2022 2022 Shares outstanding 10,448 Net income $ 7,269 Net income $ 7,269 x Market price2 $ 7.61 Interest expense, net 1,93
Slide 25: Essential ● Diverse ● Evolving
Essential ● Diverse ● Evolving 25
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