Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Investor Presentation (October 2022)
25 slides from Limbach's investor presentation, Oct 13, 2022
Slide 1: Investor Presentation October 2022
NASDAQ: LMB An integrated building systems solutions firm Essential ● Diverse ● Evolving INVESTOR PRESENTATION • OCTOBER 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 $7.75 WHAT WE DO Shares Outstanding 10.4 M We provide mechanical, electrical, plumbing and building automation Market Cap $81 design, engineering, installation, maintenance and energy mana
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 Owner Direct Relationships (“ODR”) General Contractor Relationships Today 2025 (“GCR”) 40% YTD Target Today 2025 Revenue 50% + 60% YTD Target Revenue Hired by building owners to provide: Revenue 50% • Design services Revenue • Pre-construction engineering Hired by general
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 tailwinds existing 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 damage to facilities Management Allow for Reopening of Facilities 7
Slide 8: Design – Build – Maintain
GEOGRAPHY Focused on Eastern Half of the USA Design – Build – Maintain SERVICES Engineering Energy Modeling Facility Analytics Potential Acquisition Target States MEP Construction States with Branch Locations Operations and Maintenance Emergency 24/7 Response Diversified Structure Allows Us to Alloc
Slide 9: Evolving: Over Our 120-Year History
Recession Resilient EVOLVING Over Our 120-Year History We Have Evolved to Meet the Dynamic Needs of Our Customers Targeted Revenue Mix that Strategic Goals for 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 General Contractor enables us to… Building • Drive “Wallet Share” Expansion Owner • Establish Recurring Revenue Streams • Earn Higher Margins • Reduce Risk On Course to Achieve Strategic Goal of 50% / 50%
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 $180.00 35.00% $171.00 30.83% $160.00 $154.69 30.00% $140.34 $140.00 $136.57 $130.71 $127.23 $126.48 25.00% $120.00 22.30% 20.00% $100.00 $80.00 13.62% 15.00% 12.15%
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 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 capabilities p
Slide 17: Full Year 2022 Financial Guidance
Full Year 2022 Financial Guidance Low High Guidance Revenue $510 million – $540 million Adjusted EBITDA1 $25 million – $29 million Additional Modeling Considerations Metric Comment FY 2022 GCR Revenue Projected $275 to $310 million FY 2022 ODR Revenue Projected $220 to $240 million GCR Revenue Chang
Slide 18: Operating and Financial Update
OPERATING AND FINANCIAL UPDATE 18
Slide 19: Operating and Financial Update: 2Q'22 Quarterly Performance
Operating and Financial Update 2Q’22 Quarterly Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR GCR ODR $21.3 $18.7 (18.4%) $6.6 $121.0 (15.4%) $116.1 $12.6 $33.5 $49.8 $9.8 $87.6 $3.6 $66.3 $8.9 $8.7 2Q'21 2Q'22 2Q'21 2Q'22 2Q'21 2Q'22 Year-Over-Year Year-Over-Year Year-Over
Slide 20: Operating and Financial Update: Year to Date Performance
Operating and Financial Update Year to Date Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR GCR ODR $39.7 $10.0 (17.2%) $35.9 $234.4 (15.3%) $22.6 $230.9 $17.6 $62.0 $92.7 $5.6 $172.4 $138.3 $18.3 $17.1 1H'21 1H'22 1H'21 1H'22 1H'21 1H'22 Year-Over-Year Year-Over-Year Year-O
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 June 30, 20221 December 31, 20212 Cash and Cash Equivalents $19.6 $14.5 Current Assets $201.9 $192.9 Current Liabilities $142.1 $129.7 Working Capital $59.8 $63.2 Net (Over)
Slide 22: Appendix
APPENDIX C\LIMBACH
Slide 23: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table For the Three and Six Months Ended June 30, 2022 and 2021 Reconciliation of Net Income (Loss) to Adjusted EBITDA(1),(2) Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Net income (loss) $ 866 $ 732 $ (650) $ (1,550) Adjustments:
Slide 24: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Enterprise Value Calculation1 Adjusted EBITDA Calculation1,3 Free Cash Flow Calculation1,3 TTM TTM June 30, June 30, June 30, 2022 2022 2022 Shares outstanding 10,423 Net income $ 7,614 Net income $ 7,614 x Market price2 $ 7.75 Interest expense, net 1,816 + Depreciatio
Slide 25: Diverse ● Essential ● Evolving
Diverse ● Essential ● Evolving 25
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