Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Q1 2023 Earnings Presentation
20 slides from Limbach's earnings presentation, May 9, 2023
Slide 1: Investor Presentation May 2023
NASDAQ: LMB INVESTOR PRESENTATION May 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 Combines Best in Class Attributes of Key Verticals
Limbach Combines Best in Class Attributes of Key Verticals As we evolve Limbach to include an increasing contribution from high-value activities centered on providing solutions, we expect to drive margin improvement with valuation multiples following suit. INCREASED MARGINS Specialty Consulting Cont
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: How Will We Scale the Business?
How We Execute Margin Expansion Scale How Will We Scale through Evolved Through the Business? Organic Offerings Acquisitions Segment Mix Strategy
Slide 7: Our Differentiated Business Model
Our Differentiated Business Model General Contractor Relationships (“GCR”) Owner Direct Relationships (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 systems,
Slide 8: Driving Recurring Revenue & Margin Expansion
Driving Recurring Revenue & Margin Expansion TRADITIONAL CONTRACTORS OWNER-DIRECT BUILDING (Legacy Peers) SYSTEMS SOLUTIONS APPROACH • Recurring subscription agreement revenue from • Primarily single-instance construction building owners projects • Data – driven solution selling • Longer duration pr
Slide 9: Bottom Line Evolution Driven by Segment Mix Shift
Bottom Line Evolution Driven by Segment Mix Shift Over the period from FY 2018 – FY 2022, Gross Margin has expanded over 58% to 18.9%. This has enabled us to drive EBITDA margin up more than 5x from 1.3% to 7.4% over the same period. 25.0% 75.0% 65.0% 20.0% 55.0% 15.0% 45.0% 10.0% 35.0% 5.0% 25.0% 0
Slide 10: Thoughtful Capital Allocation
Thoughtful Capital Allocation Balance Sheet Adjusted EBITDA1 Expanded revolver provides additional standby capital to fund acquisitions3 Target Conversion Flexible & Agile of 70% Acquisitions Capital Stringent acquisition Management gating criteria providing a FCF2 curated list of targets Opportunis
Slide 11: Scale Through Acquisitions
Scale Through Acquisitions CURRENT & TARGET GEOGRAPHIES Acquisitions Tuck-In $10-15M w/80%+ ODR Revenue +15% YoY ODR Growth Focus on GP Quality & Account Resources New Geography Acquisitions $25M-40M w/ODR & GCR Mix Year 3 = 50/50 Mix States with branch locations and potential tuck-in opportunity Po
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: 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 EF Hutton Conference May 11 New York, NY Lytham Partners Spring Conference May 18 Virtual Sidoti Small Ca
Slide 14: 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 15: Appendix
APPENDIX
Slide 16: Operating and Financial Update
Operating and Financial Update 1Q’23 Quarterly Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 GCR ODR GCR ODR $26.2 $121.0 $8.7 $114.8 (21.7%) $18.3 (16.0%) $15. $58. 9 $42. 7 9 $10. 0 $71. $3.4 9 $62. 3 $10. $8.4 3 1Q'22 1Q'23 1Q'22 1Q'23 1Q'22 1Q'23 Year-Over-Year Year-Over-Year
Slide 17: Operating and Financial Update: Key Balance Sheet Items
Operating and Financial Update Key Balance Sheet Items March 31, 20231 December 31, 20221 Cash and Cash Equivalents $41.4 $36.0 Subsequent to quarter end, we entered into an Current Assets $212.3 $226.0 amended credit facility which replaced the prior one. Key aspects of the new facility included: C
Slide 18: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table For the Three Months and TTM periods ended March 31, 2023 Reconciliation of Net Income to Adjusted EBITDA Three Months Ended, March 31, TTM March 31, (in thousands) 2023 2022 2023 Net income (loss) $ 2,993 $ (1,516) $ 11,308 Adjustments: Depreciation and amortization 1,
Slide 19: 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% SG&A Margin
Slide 20: Contact Us
Contact Us INVESTOR RELATIONS Jeremy Hellman, CFA Vice President (212) 836-9626 / jhellman@equityny.com