Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Q3 2018 Earnings Presentation
17 slides from Limbach's earnings presentation, Nov 20, 2018
Slide 1: Third Quarter 2018 Earnings Call
Third Quarter 2018 Earnings Call November 20, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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, Adj
Slide 3: 3Q'18 Operating Review
3Q’18 Operating Review 5 Preliminary Thoughts on 2019 • Intend to provide 2019 guidance alongside reporting 4Q and full year 2018 earnings in March • Macro conditions remain broadly favorable; continued strength in many geographic markets and vertical sector • Strong backlog provides good near - ter
Slide 4: Review of Mid-Atlantic Business Unit
• Created co - COO structure in response to overall growth of Limbach business (headcount has doubled over four years) • Improved resource allocation and accountability • Enhanced training and development programs 3Q’18 Operating Review Review of Mid - Atlantic Business Unit 4 • On average over the
Slide 5: Revenues Tracking Well; Maintaining Revenue Guidance
3Q’18 Operating Review Revenues Tracking Well; Maintaining Revenue Guidance 5 • 3Q revenues up 11.3% year - over - year; maintaining 2018 revenue guidance, implying top - line growth of 9% - 13% • YTD Gross margins ex - Mid Atlantic continue to expand; increase of 190 bps year - over - year • Contin
Slide 6: Construction Sales Momentum and Considerable Backlog Coverage
3Q’18 Operating Review Construction Sales Momentum and Considerable Backlog Coverage 6 • With significant backlog and promised/committed but un - booked work, Limbach believes it is well - positioned to achieve its 2018 Construction revenue forecast as of September 30 • ~75% of current Construction
Slide 7: Operations excluding Mid-Atlantic Business Continue to Perform
3Q’18 Operating Review Operations excluding Mid - Atlantic Business Continue to Perform 7 Excluding the Mid - Atlantic business unit: x Revenue is 1.4% ahead of Plan revenue x Gross margins are 200 bps ahead of Plan, and 520 basis ahead of the consolidated ‘as reported’ figure x EBIT is 70% ahead of
Slide 8: Service Operations
$10.0 $11.3 $12.9 $12.8 $14.8 $0 $4 $8 $12 $16 2015 2016 2017 3Q '17 3Q '18 Growth +15.6% 3Q’18 Operating Review Service Operations 8 ($ in millions) 2 Service Segment Revenues Maintenance Base $57.8 $82.2 $94.4 $70.9 $75.2 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95 $100 2015 2016 2017 YTD '17 YTD '18
Slide 9: Management Initiatives
Management Initiatives Continuing to make significant investment in people 9 3 • Installing key metrics for all production. The piloted program has proved to be very successful in increasing profitability and reducing write downs • Florida business units using 99% of pre - fabricated or pre - cut as
Slide 10: Launch of LEAP Initiative
Launch of LEAP Initiative Limbach Energy Assessment for Performance 10 LEAP is a data - analytics platform that improves the efficiency of clients’ existing facilities . Utilizing LEAP, facility owners realize reduced utility costs and are able to demonstrate responsible environmental stewardship .
Slide 11: Balance Sheet/Financing
3Q’18 Operating Review Balance Sheet/Financing 11 Elevated activity has generated significant billings in the last quarter; as a result, liquidity remains strong We’re working to refinance the debt capital structure in order to support the Company's strategic objectives including a robust M&A pi
Slide 12: Indicators and Outlook
Indicators and Outlook 4 Source: FMI U.S. Construction Outlook Third 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 - Family
Slide 13: Favorable Industry Outlook
Source: FMI 2018 FMI Overview Featuring FMI’s Third Quarter 2018 Construction Outlook. Construction Put - in - Place Favorable Industry Outlook Estimates Continue to be Positive for Key Markets Health Care Amusement Transportation Education $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 2016 2017 2
Slide 14: Initial Perspectives on 2019
Initial Perspectives on 2019 14 1 See pp. 17 for GAAP Reconciliation to Adjusted EBITDA. 5 General Comments • Macro conditions remain favorable, supported by continued economic growth and the unique attributes of Limbach's key end markets, including healthcare, education and entertainment. • Booked
Slide 15: Q&A
15 Q&A
Slide 16: Appendix
16 Appendix
Slide 17: Use of Non-GAAP Financial Measures
17 * 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 as net income (loss) plus d