NASDAQ$LMB

Limbach Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue but an increase in gross margin driven by a shift towards higher-margin ODR segment work.

Limbach Holdings, Inc. reported consolidated revenue of $121.0 million for Q2 2021, a 10.5% decrease compared to Q2 2020. Gross margin increased to 15.4%, up from 15.0% in the same period last year, driven by a shift towards higher-margin Owner Direct Relationships (ODR) segment work. Net income was $0.7 million, compared to $2.9 million for the second quarter of 2020.

  • Consolidated revenue decreased by 10.5% year-over-year to $121.0 million.
  • ODR segment revenue increased by 14.4% year-over-year, accounting for 27.7% of consolidated revenue.
  • Gross margin improved to 15.4%, up from 15.0% in the second quarter of 2020, driven by higher margin ODR segment work.
  • Net income decreased to $0.7 million, compared to $2.9 million for the second quarter of 2020.

Headline financials

Total Revenue

$121M

Previous: $135M-10.5%
EPS (adj)

$0.07

Previous: $0.37-81.1%
Gross Margin

15.4%

Previous: 15.0%+2.7%
Adjusted EBITDA

$3.6M

No prior period
Capital Expenditures

-$501K

Previous: -$660K+24.1%
Free Cash Flow

$231K

Previous: $2.29M-89.9%
Net Income

$732K

Previous: $2.95M-75.2%
Operating Income

$1.35M

Previous: $6.31M-78.5%
Gross Profit

$18.7M

Previous: $20.3M-8.1%
Cash & Equivalents

$27.7M

Previous: $28.8M-3.9%
Total Assets

$258M

Previous: $270M-4.3%
Stock-Based Comp

$636K

Previous: $140K+354.3%

Revenue & EPS history

Limbach · Revenue · Quarterly

$121M

Q2 2021-10.5%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The Company is revising its guidance for 2021 with revenue expected to be between $480 million and $510 million and Adjusted EBITDA between $23 million and $25 million.

Tailwinds

  • ODR segment contributing as much as 30% of consolidated revenue for the year.
  • Expected gross margin improvement of up to 150 basis points.
  • ODR revenue growth is expected to exceed historical rates, with growth in excess of 25% for the year.
  • GCR revenue is tracking ahead of plan due to strong sales in the second quarter of 2021.
  • Improving pipeline of opportunities as customers accelerate their capital spending tied to the reopening and expanding economy.

Headwinds

  • ODR revenue growth, while substantial, will fall slightly short of original expectations.
  • Lower margins in the GCR segment impacting overall profitability.
  • Selling, general and administrative expense to continue as planned based on investments into the ODR segment.
  • Tightening Adjusted EBITDA guidance range due to likely mix between GCR and ODR revenue.
  • Uncertainty due to the emergence of the Delta Variant of COVID-19 becoming more prevalent.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.8%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+6.1%

Avg return

30 days after

59%

26 / 44 earnings

Positive

+27.5%

Q3 2024

Best reaction

-42.4%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.9%-29.7%-17.6%
Q4 2025-1.6%-7.9%-9.8%
Q3 2025-7.3%-14.0%-18.8%
Q1 2025+11.2%+18.4%+29.8%
Q4 2024+15.6%+11.0%+12.7%
Q3 2024+27.5%+31.7%+36.0%
Q2 2024+13.9%+13.0%+18.0%
Q1 2024-1.1%+4.7%+19.0%
Q4 2023-16.0%-14.8%-20.3%
Q3 2023+16.3%+16.5%+38.3%
Q2 2023+22.7%+18.9%+31.3%
Q1 2023+18.6%+13.6%+37.9%
Q4 2022+7.8%+15.9%+22.1%
Q3 2022+14.2%+13.7%+42.9%
Q2 2022+4.6%+14.9%+42.1%
Q1 2022-5.8%-1.7%+13.4%
Q4 2021-3.4%-7.7%-7.0%
Q3 2021+1.4%-2.0%+3.4%
Q2 2021-10.3%-7.8%-26.0%
Q1 2021-12.1%-11.2%-10.1%
Q4 2020+2.3%-9.3%-3.6%
Q3 2020+1.2%+9.8%+40.1%
Q2 2020+4.0%+13.9%+56.4%
Q1 2020+25.5%+21.3%+13.9%
Q4 2019+1.4%-7.3%+9.8%
Q3 2019-33.8%-36.8%-37.5%
Q2 2019-42.4%-44.0%-40.5%
Q1 2019+20.1%+35.1%+5.4%
Q4 2018+12.4%+17.7%+7.2%
Q3 2018-19.8%-22.0%-25.1%
Q2 2018-3.1%-6.6%-9.5%
Q1 2018-3.7%-4.3%-14.5%
Q4 2017+3.4%+8.8%+5.1%
Q3 2017-6.5%-7.6%-0.2%
Q2 2017+3.9%+2.5%+5.9%
Q4 2016+0.1%-2.4%-7.6%
Q1 2017+0.1%-0.9%-4.5%
Q3 2016+6.1%+5.4%-8.0%
Q4 2015+0.7%
Q2 2015+0.6%
Q1 2015-0.3%
Q4 2014+0.0%
Q3 2014+0.0%
Q2 2014-0.1%

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