Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Investor Presentation (September 2018)
30 slides from Limbach's investor presentation, Sep 20, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward - looking statements 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, our earnings, Adjus
Slide 3: Limbach at a Glance
Limbach at a Glance Limbach Holdings is an integrated building systems solutions firm providing mechanical design, engineering, installation, maintenance and energy management services in commercial, institutional and industrial facilities . We serve the full - lifecycle facility needs of prominent
Slide 4: Equity Trading Profile
Equity Trading Profile Key Trading Statistics 1 Market Price $9.64 52 Week Low / High $9.25 / $15.22 Equity Market Capitalization $73.2 million Shares Outstanding 2 7.542 million Unrestricted Float (Shares / $ Value) 4.4 million / $54.0 million 30 Day ADTV (Shares / $ Value) 18,980 / $0.2 million Ke
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity Institutional investors seeking exposure to the building/facility infrastructure sector are limited in their investment options . Only Limbach provides superior revenue growth with the near - term opportunity of greater operating leverage and improving margins . Wit
Slide 6: Investment Highlights
Investment Highlights Premier Provider of Complex Mechanical System Solutions • Full - service mechanical platform with growing presence in the complementary electrical trades • Significant design and engineering capabilities serve as a competitive advantage and barrier to entry • National scale and
Slide 7: Who We Are
Who We Are Founded in 1901 , Limbach is the 10 th largest mechanical contractor 1 in the nation . The Company exclusively serves the domestic building market with a culture that values the talents and contributions of its union and open shop craft laborers, talented design professionals and dedicate
Slide 8: The Economics of Building Systems
MEP Systems 30% Repair and Maintenance 23% Cleaning 18% Management and Administration 10% Security 8% Grounds 3% The Economics of Building Systems MEP Systems 60% Lighting 20% Other 16% Office Equipment 4% Lifecycle Operating Expenses Sources: BOMA, U.S. Energy Information Administration and ASHRAE.
Slide 9: Complete Portfolio of MEP Services
Complete Portfolio of MEP Services Limbach is a preeminent national provider of technically - oriented mechanical design, engineering, installation, and maintenance services to sophisticated customers and facility owners who demand exceptional design creativity and construction quality . Offering a
Slide 10: Well Diversified Business Model
Well Diversified Business Model Limbach’s multifaceted diversification provides insulation against regional economic cycles, a changing regulatory and political environment favoring some industries over others, and the fortunes of any single customer or facility owner . Within each vector, Limbach h
Slide 11: Broad Geographic Reach
Broad Geographic Reach Limbach’s current operating platform provides exposure to large population centers along the Eastern Seaboard experiencing solid growth and infrastructure investment, in addition to a well - established presence in the energy and manufacturing - driven resurgent Midwest, and t
Slide 12: High Growth End-Markets
High Growth End - Markets ● Healthcare ● Sports ● Education ● Government ● Hospitality ● Entertainment ● Transportation ● Mission Critical ● Manufacturing ● Commercial Limbach’s focus is on large and growing markets that require specialized technical capabilities and solutions . As a result of our b
Slide 13: Emerging End-Market Opportunities
Emerging End - Market Opportunities 1 [__]. The Mission Critical (including Data Room) and Manufacturing sectors are high growth markets attracting significant investment . Limbach is well equipped to capture business in these markets given the Company’s solutions - oriented approach to design and c
Slide 14: Limbach Engineering & Design Services
Limbach Engineering & Design Services Limbach Engineering & Design Services provides a sustainable competitive advantage that distinguishes the Company as the preeminent innovator in mechanical design and constructability . The more than 40 design professionals in Limbach’s Orlando, FL design center
Slide 15: Service Division Annuity Income
Service Division Annuity Income Limbach’s Service division further cements long - term customer relationships and captures the annuity income stream resulting from the maintenance of expensive and critical facility systems . Maintenance of HVAC, plumbing, piping and other systems is not elective, an
Slide 16: Enduring Customer Relationships
Enduring Customer Relationships Owner Direct Relationships Contractors Limbach’s reputation for design innovation and quality execution has cemented relationships with leading facility owners, construction managers and general contractors who value dependability and partnership . Management’s high p
Slide 17: Abundant Growth Opportunities
Abundant Growth Opportunities Multiple Growth Vectors Existing market trade expansion New trade capabilities MEP Prime Expansion into new vertical markets Adjacent geographic market expansion New geographic market expansion Service division market penetration 17
Slide 18: Accelerated Growth through Acquisition
Accelerated Growth through Acquisition Acquisitions represent a key component of Limbach’s growth strategy, offering trade, geographic and end - market diversification, as well as the operating efficiencies resulting from the leverage of Limbach’s corporate platform . Limbach’s unique position in th
Slide 19: Acquisition of Dunbar Mechanical
Acquisition of Dunbar Mechanical 19 Announced on September 19 that Limbach has signed a definitive agreement to acquire Toledo, OH - based Dunbar Mechanical x Purchase price of $20.2 million • $4.0 million of LMB stock • $3.6 million subordinated seller note • $12.6 million of cash x Privately - own
Slide 20: Capital Markets Opportunities
Capital Markets Opportunities As a maturing small cap public company, Limbach enjoys numerous value creation opportunities, from expanding research coverage to rationalizing the equity capital structure . With greater balance sheet simplification and a higher public market profile, Limbach will expe
Slide 21: Backlog and 2018 Guidance
Limbach’s considerable backlog of construction work, together with a robust pipeline of qualified opportunities, provide support for the achievability of the current year revenue forecast, and as support for growth in 2019 . Limbach considers backlog in the Construction segment to include work - in
Slide 22: Strong Sales Supporting Current Year Revenue
Given Limbach’s backlog entering 2018 and strong sales through the first half of the year, the Company has already identified with high conviction more than 96 % of its forecasted 2018 Construction revenue . Firm backlog and revenue earned to date accounts for 96 % of total projected Construction re
Slide 23: Appendix
Ql Appendix
Slide 24: Favorable Industry Outlook
Favorable Industry Outlook Source: FMI U.S. Construction Outlook Second Quarter 2018 Report. Totals may not foot due to rounding. 1 Figures represent percentages of project revenue between January 1, 2015 and March 31, 2018. Other key end markets include Ce ntr al Utility Plants (3.4%), Multi - Fami
Slide 25: Construction Put-in-Place: Core Markets
Source: FMI U.S. Construction Outlook Second Quarter 2018 Report . Construction Put - in - Place: Core Markets Healthcare Amusement Transportation Education $30,000 $40,000 $50,000 $60,000 2016 2017 2018 2019 2020 2021 2022 ($ in millions) $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 2016 201
Slide 26: Financial Profile
Financial Profile 1 Includes the Predecessor for the period January 1, 2016 through July 19, 2016, and the Successor for the period July 20, 2016 th rough December 31, 2016. See Form 10 - K for the fiscal year ended December 31, 2017. 2 Net loss is applicable only Limbach Holdings, Inc. common share
Slide 27: 2Q'18 Financial Update
1 Revised revenue guidance of $530 - $550 million, an increase from previous revenue guidance of $520 - $540 million and exclude s the impact of the recently - announced agreement to acquire Dunbar Mechanical, Inc. Earned Revenue Gross Profit and Gross Margins Limbach has capitalized on the strength
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation * Use of Non - GAAP Financial Measures In assessing the performance of our business, management utilizes a variety of financial and performance measures . The key measure is Adjusted EBITDA . Adjusted EBITDA is a non - GAAP financial measure . We define adjusted EBITDA
Slide 29: Balance Sheet
Balance Sheet 29 For the Year Ended ($ in millions) 12/31/16 12/31/17 06/30/18 Cash and cash equivalents $7.4 $0.6 $0.3 Restricted cash 0.1 0.1 0.1 Accounts receivable, net 114.0 129.3 137.4 Costs and estimated earnings in excess of billings 32.0 33.0 32.7 Other current assets 1.7 3.2 4.6 Total curr
Slide 30: Equity Capitalization
Limbach’s equity capital structure includes approximately 7 . 59 million common shares and several tranches of warrant securities, each with slightly different terms and economics . Addressing the warrant structure through an exchange offer or other capital markets transaction will provide greater t
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