On August 6, 2024, Limbach Holdings Inc (LMB, Financial) released its 8-K filing announcing its financial results for the second quarter ended June 30, 2024. Limbach Holdings Inc is a commercial specialty contractor in the fields of heating, ventilation, air conditioning, plumbing, electrical, and building controls for the design and construction of new and renovated buildings, maintenance services, energy retrofits, and equipment upgrades. The company operates in two segments: General Contractor Relationships (GCR) and Owner Direct Relationships (ODR), with the latter generating the majority of its revenue.
Performance Overview
For the second quarter of 2024, Limbach Holdings Inc reported a net income of $6.0 million, or $0.50 per diluted share, surpassing the analyst estimate of $0.37 per share. However, the company's total revenue of $122.2 million fell slightly short of the estimated $122.65 million, representing a 2.1% decrease from the same period last year.
Key Financial Achievements
The ODR segment was a significant driver of profitability, with revenue increasing by 40.8% to $82.8 million, accounting for 67.7% of total revenue. This shift aligns with the company's strategic focus on growing its higher-margin ODR business. The total gross profit for the quarter was $33.5 million, up 17.5% from $28.5 million in the prior year, resulting in a record quarterly gross margin of 27.4%.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenue | $122.2 million | $124.9 million | -2.1% |
| Gross Profit | $33.5 million | $28.5 million | +17.5% |
| Net Income | $6.0 million | $5.3 million | +12.1% |
| Adjusted EBITDA | $13.8 million | $11.9 million | +16.0% |
Balance Sheet and Cash Flow
As of June 30, 2024, Limbach Holdings Inc reported cash and cash equivalents of $59.5 million. The company's current assets stood at $213.3 million, while current liabilities were $130.6 million, resulting in a current ratio of 1.63x. Net cash provided by operating activities was $16.5 million, slightly down from $16.9 million in the prior year.
Management Commentary
"Our team made strong progress in executing our strategic plan to grow our higher margin ODR business in the second quarter," said Michael McCann, Limbach’s President and Chief Executive Officer. "These strong results, which include acquisitions, demonstrate that our strategy is working, and our customer value proposition is compelling."
Updated 2024 Guidance
Limbach Holdings Inc has raised its 2024 revenue guidance to a range of $515 million to $535 million, up from the previous range of $510 million to $530 million. The company also increased its adjusted EBITDA guidance to a range of $55 million to $58 million, from the prior range of $51 million to $55 million.
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Explore the complete 8-K earnings release (here) from Limbach Holdings Inc for further details.
