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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
 
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): November 5, 2024
 
 
LIMBACH HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware 001-36541 46-5399422
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
 
797 Commonwealth Drive, Warrendale, Pennsylvania 15086
(Address of principal executive offices, including zip code)
 
Registrant’s telephone number, including area code: (412) 359-2100
Not Applicable
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, $0.0001 par value LMB The Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨



Item 2.02 Results of Operations and Financial Condition.
On November 5, 2024, Limbach Holdings, Inc. (the “Company”) issued a press release dated the same date announcing its financial results for its quarter ended September 30, 2024. We have furnished a copy of this release as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7.01 Regulation FD Disclosure.
The Company is furnishing presentation materials (the “Investor Presentation”) that management intends to use, possibly with modifications, in one or more meetings from time to time with current and potential investors. The Investor Presentation includes an update on the Company’s current operations and major projects, as well as information relating to the Company’s strategic plans, goals, growth initiatives and outlook, and forecasts for future performance and industry development.
The foregoing description of the Investor Presentation does not purport to be complete and is qualified in its entirety by reference to the complete text of the Investor Presentation attached as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in the Investor Presentation is summary information that should be considered in the context of the Company’s filings with the Securities and Exchange Commission and other public announcements the Company may make by press release or otherwise from time to time. The Investor Presentation speaks as of the date of this report. While the Company may elect to update the Investor Presentation in the future to reflect events and circumstances occurring or existing after the date of this report, the Company specifically disclaims any obligation to do so.
By furnishing the portions of this Current Report on Form 8-K that are disclosed under this Item 7.01 and the Investor Presentation that is an exhibit hereto, the Company makes no admission as to the materiality of any information included under this Item 7.01, including without limitation the Investor Presentation. The Investor Presentation contains forward-looking statements. See Page 2 of the Investor Presentation for a discussion of certain forward-looking statements that are included therein and the risks and uncertainties related thereto.
The information in this Item 7.01 of this Current Report on Form 8-K and Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  LIMBACH HOLDINGS, INC.  
       
       
  By: /s/ Jayme L. Brooks  
  Name: Jayme L. Brooks  
  Title: Executive Vice President and Chief Financial Officer  
 
Dated: November 5, 2024
 


EX-99.1 2 a2024930ex991pr.htm EX-99.1 Document

limbach-primarylogo_rgbxed.jpg

FOR IMMEDIATE RELEASE
Limbach Holdings, Inc. Announces Third Quarter 2024 Results
Raising 2024 Adjusted EBITDA Guidance after Delivering Q3 Net Income of $7.5 million and Record Quarterly Adjusted EBITDA of $17.3 million
WARRENDALE, PA – November 5, 2024 – Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended September 30, 2024.
2024 Third Quarter Financial Overview Compared to 2023 Third Quarter
•Owner Direct Relationships (“ODR”) revenue increased 41.3%, or $27.2 million, to $93.0 million accounting for 69.4% of total revenue.
•Total revenue was $133.9 million, an increase of 4.8% from $127.8 million.
•Total gross profit was $36.1 million, an increase of 15.6% from $31.2 million.
•ODR gross profit accounted for $29.6 million, or 82.1%, of total gross profit.
•Net income of $7.5 million, or $0.62 per diluted share, compared to net income of $7.2 million, or $0.61 per diluted share.
•Adjusted EBITDA of $17.3 million, up 27.2% from $13.6 million.
•Net cash provided by operating activities of $4.9 million compared to $17.2 million.
Management Comments
“In the third quarter, we continued to execute the three pillars of our strategy with each pillar contributing to our EBITDA growth and gross margin expansion,” said Michael McCann, President and Chief Executive Officer of Limbach Holdings. “Our results are a direct outcome of executing our plan to shift our business to working directly for building owners on existing facilities, evolving our service offerings and scaling through acquisitions.
“We are seeing durable customer demand for our value-added solutions and achieving organic growth by focusing on deeper penetration with existing customers. Demand in all verticals has been strong, and we believe the long-term growth potential of data centers is set to play an increasingly important role for demand.
“Our recent acquisition of Kent Island Mechanical increased market share within the Greater Washington, D.C. metro region. We immediately began integrating Kent Island on to the Limbach platform to expand our capabilities, gain efficiencies and add new customers to our existing ODR business. We’re pleased with the initial progress and anticipate making additional acquisitions at a pace of about two to three per year from our strong pipeline of potential targets.
“We are quickly approaching our ODR and GCR target revenue mix of 65% to 70% ODR for 2024, and in 2025 we expect to see growth in our top line, total consolidated revenue.”

The following are results for the three months ended September 30, 2024 compared to the three months ended September 30, 2023:
•Total revenue was $133.9 million, an increase of 4.8% from $127.8 million. ODR segment revenue of $93.0 million increased by $27.2 million, or 41.3%, while GCR revenue decreased by $21.0 million, or 33.9%. The increase in period-over-period ODR segment revenue was primarily due to the Company's continued focus on accelerating the growth of its ODR business and as a result of the Industrial Air transaction. Industrial Air was not an acquired entity for the three months ended September 30, 2023. The decrease in period-over-period GCR segment revenue was primarily due to the Company’s continued focus on the execution of its mix-shift strategy to the ODR segment.


•Total gross profit was $36.1 million, compared to $31.2 million. ODR gross profit increased $10.4 million, or 53.8%, due to the combination of an increase in revenue and higher segment margins of 31.9% versus 29.3% driven by contract mix. GCR gross profit decreased $5.5 million, or 46.0%, primarily due to lower revenue and lower margins of 15.8% compared to 19.3% in the prior period. The total gross profit percentage increased from 24.5% to 27.0%, mainly driven by the mix of higher margin ODR segment work, the Company continuing to being more selective when pursuing GCR work, and the Industrial Air transaction.
•Selling, general and administrative (“SG&A”) expenses increased by approximately $2.8 million, to $23.7 million, compared to $21.0 million. The increase in SG&A expense was primarily due to $1.0 million of SG&A expenses incurred within the Industrial Air entity that was not an acquired entity of the Company during the three months ended September 30, 2023, a $1.1 million increase in payroll related expenses, a $0.5 million increase in stock-based compensation expenses and a $0.4 million increase in professional services fees. As a percent of revenue, SG&A expenses were 17.7%, up from 16.4% in the prior period.
•Interest expense was relatively flat at $0.5 million during the current quarter compared to $0.4 million.
•Interest income was $0.6 million during the current quarter compared to $0.4 million. This increase was due to the Company's timing and amounts of investments in overnight repurchase agreements, U.S. Treasury Bills, and money market funds period-over-period.
•Net income was $7.5 million compared to $7.2 million, an increase of 4.1%. Diluted earnings per share was $0.62 as compared to $0.61 in the prior period. Adjusted EBITDA was $17.3 million compared to $13.6 million in the prior period, an increase of 27.2%.
•Net cash provided by operating activities of $4.9 million compared to $17.2 million in the prior period primarily due to changes in working capital.
Balance Sheet
At September 30, 2024, cash and cash equivalents were $51.2 million. Current assets were $217.1 million and current liabilities were $138.2 million at September 30, 2024, representing a current ratio of 1.57x compared to 1.50x at December 31, 2023. Working capital was $78.9 million at September 30, 2024, an increase of $7.1 million from December 31, 2023. At September 30, 2024, we had $10.0 million in borrowings against our revolving credit facility and $4.3 million for standby letters of credit.
2024 Guidance
We are updating our guidance for FY 2024 as follows:
Current Previous
Revenue $520 million - $540 million $515 million - $535 million
Adjusted EBITDA $60 million - $63 million $55 million - $58 million
With respect to projected 2024 Adjusted EBITDA guidance and Adjusted EBITDA Margin, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items, which are excluded from Adjusted EBITDA. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results.
Conference Call Details
Date: Wednesday, November 6, 2024
Time: 9:00 a.m. Eastern Time
Participant Dial-In Numbers:
Domestic callers:
(877) 407-6176
International callers: +1 (201) 689-8451
Access by Webcast
2

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Limbach’s website at www.limbachinc.com or by clicking on the conference call link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=O8Y8RPcV. An audio replay of the call will be archived on Limbach’s website for 365 days.
About Limbach
Limbach is a building systems solution firm that partners with building owners and facilities managers who have mission critical mechanical (heating, ventilation and air conditioning), electrical and plumbing infrastructure. We strive to be an indispensable partner to our customers by providing services that are essential to the operation of their businesses. We work with building owners primarily in six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment. We have more than 1,300 team members in 19 offices across the eastern United States. Our team members uniquely combine engineering expertise with field installation skills to provide custom solutions that leverage our full life-cycle capabilities, which allows us to address both the operational and capital projects needs of our customers.
Additional Information
Investors and others should note that Limbach announces material financial information to its investors using its investor relations website, U.S. Securities and Exchange Commission filings, press releases, public conference calls/videos, and webcasts. Limbach uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s services and other Company information. It is possible that the information that Limbach posts on social media could be deemed to be material information. Therefore, Limbach encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Limbach’s investor relations website.
Forward-Looking Statements
We make forward-looking statements in this press release 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, Adjusted EBITDA, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, and in particular statements regarding the impact of the COVID-19 pandemic on the construction industry in future periods, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of Limbach to successfully remedy the issues that have led to write-downs in various business units. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target,” “goal,” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties, which may cause them to turn out to be wrong. Some of these risks and uncertainties may in the future be amplified by the COVID-19 outbreak and there may be additional risks that we consider immaterial or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.

Investor Relations

Financial Profiles, Inc.
Julie Kegley
LMB@finprofiles.com


3

LIMBACH HOLDINGS, INC.
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, except share and per share data) 2024 2023 2024 2023
Revenue $ 133,920  $ 127,768  $ 375,131  $ 373,659 
Cost of revenue 97,806  96,524  274,421  287,675 
Gross profit 36,114  31,244  100,710  85,984 
Operating expenses:
Selling, general and administrative 23,748  20,967  69,800  62,433 
Change in fair value of contingent consideration 610  161  2,344  464 
Amortization of intangibles 868  288 2,956  1,054 
Total operating expenses 25,226  21,416  75,100  63,951 
Operating income 10,888  9,828  25,610  22,033 
Other (expenses) income:
Interest expense (468) (437) (1,375) (1,615)
Interest income 626  377  1,734  624 
Gain on disposition of property and equipment 99  68  656  28 
Loss on early debt extinguishment —  —  —  (311)
(Loss) gain on change in fair value of interest rate swap (267) 116  (130) 153 
Total other (expenses) income (10) 124  885  (1,121)
Income before income taxes 10,878  9,952  26,495  20,912 
Income tax provision 3,394  2,760  5,462  5,407 
Net income $ 7,484  $ 7,192  $ 21,033  $ 15,505 
Earnings Per Share (“EPS”)
Earnings per common share:
    Basic $ 0.66  $ 0.66  $ 1.87  $ 1.45 
    Diluted $ 0.62  $ 0.61  $ 1.75  $ 1.33 
Weighted average number of shares outstanding:
Basic 11,272,798  10,962,622  11,233,847  10,695,973 
Diluted 12,027,021  11,789,137  11,998,750  11,671,819 

4

LIMBACH HOLDINGS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data) September 30, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents $ 51,163  $ 59,833 
Restricted cash 65  65 
Accounts receivable (net of allowance for credit losses of $425 and $292 as of September 30, 2024 and December 31, 2023, respectively) 101,014  97,755 
Contract assets 56,937  51,690 
Other current assets 7,965  7,657 
Total current assets 217,144  217,000 
Property and equipment, net 25,088  20,830 
Intangible assets, net 32,830  24,999 
Goodwill 21,246  16,374 
Operating lease right-of-use assets 22,312  19,727 
Deferred tax asset 5,618  5,179 
Other assets 179  330 
Total assets $ 324,417  $ 304,439 
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 2,626  $ 2,680 
Current operating lease liabilities 3,964  3,627 
Accounts payable, including retainage 51,776  65,268 
Contract liabilities 46,997  42,160 
Accrued income taxes 1,758  446 
Accrued expenses and other current liabilities 31,084  30,967 
Total current liabilities 138,205  145,148 
Long-term debt 20,497  19,631 
Long-term operating lease liabilities 18,569  16,037 
Other long-term liabilities 4,947  2,708 
Total liabilities 182,218  183,524 
STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 11,452,753 and 11,183,076, respectively, and 11,273,101 and 11,003,424 outstanding, respectively
Additional paid-in capital 92,779  92,528 
Treasury stock, at cost (179,652 shares at both period ends) (2,000) (2,000)
Retained earnings 51,419  30,386 
Total stockholders’ equity 142,199  120,915 
Total liabilities and stockholders’ equity $ 324,417  $ 304,439 
5


LIMBACH HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended
September 30,
(in thousands) 2024 2023
Cash flows from operating activities:
Net income $ 21,033  $ 15,505 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 8,261  5,751 
Provision for credit losses 159  186 
Stock-based compensation expense 4,323  3,374 
Noncash operating lease expense 3,092  2,843 
Amortization of debt issuance costs 32  69 
Deferred income tax provision (439) (1)
Gain on sale of property and equipment (656) (28)
Loss on change in fair value of contingent consideration 2,344  464 
Loss on early debt extinguishment —  311 
Gain on change in fair value of interest rate swap 130  (153)
Changes in operating assets and liabilities:
   Accounts receivable 4,283  21,896 
   Contract assets (1,115) 14,014 
   Other current assets (395) (1,459)
   Accounts payable, including retainage (18,418) (18,703)
   Prepaid income taxes —  95 
   Accrued taxes payable 1,311  (1,386)
   Contract liabilities 10  2,312 
   Operating lease liabilities (2,895) (2,803)
   Accrued expenses and other current liabilities (1,446) 1,997 
   Payment of contingent consideration liability in excess of acquisition-date fair value (2,175) (1,224)
   Other long-term liabilities 55  400 
Net cash provided by operating activities 17,494  43,460 
Cash flows from investing activities:
Kent Island Transaction, net of cash acquired (12,716) — 
ACME Transaction, net of cash acquired —  (4,883)
Proceeds from sale of property and equipment 1,171  370 
Advances from joint ventures — 
Purchase of property and equipment (6,187) (1,720)
Net cash used in investing activities (17,725) (6,233)
Cash flows from financing activities:
Payments on A&R Wintrust Term Loans —  (21,452)
Proceeds from Wintrust Revolving Loan —  10,000 
Payment of contingent consideration liability up to acquisition-date fair value (1,325) (1,776)
Payments on finance leases (2,296) (1,991)
Payments of debt issuance costs —  (50)
6

Taxes paid related to net-share settlement of equity awards (5,187) (847)
Proceeds from contributions to Employee Stock Purchase Plan 369  313 
Net cash used in financing activities (8,439) (15,803)
(Decrease) increase in cash, cash equivalents and restricted cash (8,670) 21,424 
Cash, cash equivalents and restricted cash, beginning of period 59,898  36,114 
Cash, cash equivalents and restricted cash, end of period $ 51,228  $ 57,538 
Supplemental disclosures of cash flow information
Noncash investing and financing transactions:
Earnout liability associated with the Kent Island Transaction $ 4,381  $ — 
Earnout liability associated with the ACME Transaction —  1,121 
   Right of use assets obtained in exchange for new operating lease liabilities $ 4,776  $ 1,043 
   Right of use assets obtained in exchange for new finance lease liabilities 3,095  4,062 
   Right of use assets disposed or adjusted modifying operating lease liabilities 988  (643)
   Right of use assets disposed or adjusted modifying finance lease liabilities —  (77)
Interest paid 1,413  1,482 
Cash paid for income taxes $ 4,700  $ 6,718 
7


LIMBACH HOLDINGS, INC.
Condensed Consolidated Segment Operating Results (Unaudited)
Three Months Ended
September 30,
Increase/(Decrease)
(in thousands, except for percentages) 2024 2023 $ %
Statement of Operations Data:    
Revenue:    
ODR $ 93,007  69.4  % $ 65,832  51.5  % $ 27,175  41.3  %
GCR 40,913  30.6  % 61,936  48.5  % (21,023) (33.9) %
Total revenue 133,920  100.0  % 127,768  100.0  % 6,152  4.8  %
Gross profit:
ODR(1)
29,647  31.9  % 19,274  29.3  % 10,373  53.8  %
GCR(2)
6,467  15.8  % 11,970  19.3  % (5,503) (46.0) %
Total gross profit 36,114  27.0  % 31,244  24.5  % 4,870  15.6  %
Selling, general and administrative(3)
23,748  17.7  % 20,967  16.4  % 2,781  13.3  %
Change in fair value of contingent consideration 610  0.5  % 161  0.1  % 449  278.9  %
Amortization of intangibles 868  0.6  % 288  0.2  % 580  201.4  %
Total operating income $ 10,888  8.1  % $ 9,828  7.7  % $ 1,060  10.8  %
(1)As a percentage of ODR revenue.
(2)As a percentage of GCR revenue.
(3)Included within selling, general and administrative expenses was $1.6 million and $1.1 million of stock-based compensation expense for the three months ended September 30, 2024 and 2023, respectively.

8


LIMBACH HOLDINGS, INC.
Condensed Consolidated Segment Operating Results (Unaudited)
Nine Months Ended
September 30,
Increase/(Decrease)
(in thousands, except for percentages) 2024 2023 $ %
Statement of Operations Data:    
Revenue:    
ODR $ 250,017  66.6  % $ 183,330  49.1  % $ 66,687  36.4  %
GCR 125,114  33.4  % 190,329  50.9  % (65,215) (34.3) %
Total revenue 375,131  100.0  % 373,659  100.0  % 1,472  0.4  %
Gross profit:
ODR(1)
77,170  30.9  % 52,424  28.6  % 24,746  47.2  %
GCR(2)
23,540  18.8  % 33,560  17.6  % (10,020) (29.9) %
Total gross profit 100,710  26.8  % 85,984  23.0  % 14,726  17.1  %
Selling, general and administrative(3)
69,800  18.6  % 62,433  16.7  % 7,367  11.8  %
Change in fair value of contingent consideration 2,344  0.6  % 464  0.1  % 1,880  405.2  %
Amortization of intangibles 2,956  0.8  % 1,054  0.3  % 1,902  180.5  %
Total operating income $ 25,610  6.8  % $ 22,033  5.9  % $ 3,577  16.2  %
(1)As a percentage of ODR revenue.
(2)As a percentage of GCR revenue.
(3)Included within selling, general and administrative expenses was $4.3 million and $3.4 million of stock-based compensation expense for the nine months ended September 30, 2024 and 2023, respectively.
9


Non-GAAP Financial Measures
In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measures are Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA and Adjusted EBITDA Margin. Our calculation of Adjusted EBITDA and Adjusted EBITDA Margin, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA and Adjusted EBITDA Margin cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA, the most comparable GAAP measure, is provided below.
We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options.

Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands) 2024 2023 2024 2023
Net income $ 7,484  $ 7,192  $ 21,033  $ 15,505 
Adjustments:
   Depreciation and amortization 2,741  1,892  8,261  5,751 
   Interest expense 468  437  1,375  1,615 
   Interest income (626) (377) (1,734) (624)
   Non-cash stock-based compensation expense 1,603  1,140  4,323  3,374 
   Loss on early debt extinguishment —  —  —  311 
   Change in fair value of interest rate swap 267  (116) 130  (153)
   CEO transition costs —  —  —  958 
   Income tax provision 3,394  2,760  5,462  5,407 
   Acquisition and other transaction costs 826  225  877  524 
   Change in fair value of contingent consideration 610  161  2,344  464 
   Restructuring costs(1)
565  317  827  1,089 
Adjusted EBITDA $ 17,332  $ 13,631  $ 42,898  $ 34,221 
Revenue $ 133,920  $ 127,768  $ 375,131  $ 373,659 
Adjusted EBITDA Margin 12.9  % 10.7  % 11.4  % 9.2  %
(1)For the three and nine months ended September 30, 2024 and 2023, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.
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EX-99.2 3 lmbinvestorpresentation_.htm EX-99.2 lmbinvestorpresentation_
Investor Presentation 2024 Q3 Earnings | November 2024 NASDAQ: LMB


 
NASDAQ: LMB | 2 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 Company’s long-term strategic roadmap and Limbach 3.0. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target, ” “scenario” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties which may cause them to turn out to be wrong. Some of these risks and uncertainties may in the future be amplified by the COVID-19 outbreak and there may be additional risks that we consider immaterial, or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this presentation. Forward Looking Statements


 
Limbach is a leading building systems solutions firm specializing in revitalizing mission-critical mechanical/HVAC, electrical, and plumbing infrastructure within existing buildings. NASDAQ: LMB | 3


 
NASDAQ: LMB | 4 Limbach At-A-Glance WHO WE ARE WHO WE PARTNER WITH 1,300 TEAM MEMBERS Our people make a critical difference by fostering sustainable development, and improving the environments in which we operate. We partner with Building Owners with Mission-Critical MEP Infrastructure OUR FOCUS & IMPACT 19 BRANCH LOCATIONS Healthcare Data Centers Higher Education Industrial & Manufacturing Life Science Cultural & Entertainment A building systems solutions firm with expertise in mechanical, electrical, and plumbing systems.


 
NASDAQ: LMB | 5 Transforming Into a Building Systems Solutions Firm Transforming into a building systems solutions firm, where we extend our expertise beyond MEP systems to deliver turnkey solutions that expand our current offerings, with a tailored focus on revitalizing mission-critical infrastructure in existing buildings. INTRUSION DETECTION INDUSTRIAL & MEDICAL GASES EQUIPMENT INDOOR AIR QUALITY SERVICES DIGITAL VIDEO & SECURITY SYSTEMS (ESS) ENVIRONMENTAL CONTROL & MONITORING ENERGY MANAGEMENT & UTILITY MONITORING WATER MANAGEMENT MOBILITY & VERTICAL TRANSPORTATION MECHANICAL, ELECTRICAL, PLUMBING (MEP) LIGHTING CONTROL AND RETROFIT FIRE DETECTION AND ALARM SECURITY AND ACCESS CONTROL SMOKE CONTROL Building Systems Solutions Firm Providing Solutions for Mission-Critical Building Systems


 
NASDAQ: LMB | 6 Carving our own path to lessen the impact of macroeconomic trends Mission-critical facilities where operations must remain online Flexibility in budgets, catering to customer needs spanning both Operating Expense and Capital Project budgets Durable demand, we partner with top customers with competitive positioning and market growth Our Key Markets - Focused on Mission Critical Markets with Durable Demand Healthcare Data Centers Higher Education Industrial & Manufacturing Life Sciences Cultural & Entertainment


 
NASDAQ: LMB | 7 Limbach Combines Best-in-Class Attributes of Key Verticals While the markets we serve has competition at various levels, Limbach has combined the best aspects of each in this space, enabling us to be the one-stop-shop for building owners to maximize their investment of their mission-critical assets. GC = General Contractor CM = Construction Manager Example of Firms: Typical Clients: Custom Engineered Solutions: In-House Craft/Field Expertise: Equipment/ Platform Agnostic: Vertical Market Discipline: Specialty Contractors GC/CM Consulting & Engineering Firms Building Owners OEM Firms Building Owners Specialty Contractors Property Managers Building Owners Full-Life Cycle Capability Firm Building Owners GC/CM


 
NASDAQ: LMB | 8 Two Operating Segments - ODR and GCR GCR projects are characterized as having a solution in place therefore are more likely to be procured through a competitive bid process • Most E&C peers are focused on large construction, working for General Contractors • Tends to be more cyclical and dependent on macroeconomic conditions • Production labor dependent & longer schedules making it more difficult to pass along inflationary costs • GCR Quarterly Gross Margin FY 2023: ○ Q1: 16.6% ○ Q2: 17.1% ○ Q3: 19.3% ○ Q4: 15.0% ODR work is driven by developing and proposing customized solutions that are developed from our vast knowledge of the facilities, where competing firms are challenged to provide solutions • Includes reocurring revenue from service and maintenance contracts • Better cash position by being in a direct payment relationship with owner vs. indirect • Shorter schedules and increased number of transactions • ODR Quarterly Gross Margin FY 2023: ○ Q1: 27.1% ○ Q2: 29.3% ○ Q3: 29.3% ○ Q4: 30.1% Overarching Goal: Maximized Risk Adjusted Returns Owner Direct Relationships (“ODR”) Existing Buildings General Contractor Relationships (“GCR”) New Construction


 
NASDAQ: LMB | 9 Focused on Growth Three Pillar Approach to Scale the Business: Organic Segment Revenue Percentage Mix Shift Margin Expansion Through Evolved Offerings Scale Through Acquisitions Full Transition to Achieving Optimal Higher Margin Mix Transformation from Contractor to OEM Margins Grow Footprint and Building Owner Market Share GCR 30-35% ODR 65-70% 1. Geographic Footprint Expansion & Tuck-In Acquisitions to strengthen market share & footprint 2. Expanded Offerings & Services On-Demand Infrastructure Support Energy, Carbon, & Data Professional Consultative Services Traditional Speciality Contractor Services GCR 50% ODR 50% GCR ~20% ODR ~80% 2023 2024 Beyond 2024* *Projected


 
NASDAQ: LMB | 10 Pillar #1 - Performance Due to Mix Shift Over the period from FY 2019 – FY 2023, Gross Margin has expanded nearly 1,010 bps to 23.1% This has enabled us to drive Adjusted EBITDA Margin1 more than 3x from 3.0% to 9.1% ODR Rev. % 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% G ro ss M ar gi n / A dj us te d EB IT D A M ar gi n O D R R evenue Percentage 1. See Adjusted EBITDA margin calculation and non-GAAP reconciliation on slide 27.


 
NASDAQ: LMB | 11 Pillar #1 – Organic Segment Mix Shift To Achieve Maximized Returns 21% Segment Mix Shift Projection 2019 79% 2024 65- 70% 30- 35% 2023 51%49% Beyond 2024 ~80% ~20% Challenging Industry Paradigms; Bigger isn’t Better GCR work is less sales focused, dependent on production field craft and operations staff ODR work consists of multiple transactions with heavier focus on sales and account management Limbach is creating a customer-centric culture focused on our top accounts Building relationships requires consistent effort, and creates reoccurring revenue GCR work carries greater risk, amplifies with onset of inflation. ODR work maintains stability and resilience amidst changing macroeconomic conditions. GCR Revenue ODR Revenue


 
NASDAQ: LMB | 12 Total Revenue Pillar #1 – Total Revenue is Static, but Higher Margin ODR Revenue is Growing Total Revenue is down 6.7% from 2019 ODR Revenue CAGR of 19.3% for 2019 to 2023 period Total revenue growth projected once optimal higher margin mix shift is optimized ODR Revenue $568.2M $127.2M $490.4M $140.3M $496.8M $216.4M $516.4M $262.0M $553.3M $115.1M 2019 2020 2021 2022 2023


 
NASDAQ: LMB | 13 Pillar #2 - Expanded Margins through Evolved LMB Offerings LMB 2023 Offerings: Evolved LMB Offerings: Mechanical Contractor Building Systems Solutions Firm Competitive Lump Sum Bidding Design-Assist Design-Build Performance Contracting Maintenance Contracts Spot Work Water Treatment Automated Temp. Controls Special Projects G C R O D R On-Demand Facility Services Critical System Repairs Data Driven Solutions Maintenance & Operations MEP Infrastructure Projects Equipment Upgrades & Products Professional Consultative Services Building Automation Upgrades Energy Efficiency Upgrades Decarbonization Initiatives O D R 2024 Current Focus 2025 Projected Focus 2026 Projected Focus


 
NASDAQ: LMB | 14 Pillar #2 - Expanded Margins through Evolved LMB Offerings On-Demand Services (Rental Equip.) Critical System Repairs Data Driven Solutions Maintenance & Operations MEP Infrastructure Projects Equipment Upgrades & Products Professional Consultative Services Building Automation Upgrades Energy Efficiency Upgrades Decarbonization Initiatives Evolved LMB Offerings: Customer Value: Mission-critical building systems solutions support providing best-in-class options for long- and short-term impacts Dedicated resources: onsite every day to become an extension of our customer’s staff, developing expertise in their systems Maximize returns on building assets by reducing costs and energy usage and meeting sustainability objectives Solutions that are optimized for the customer; not promoting a brand of equipment We believe that being an indispensable partner to customers leads to long-term relationships generating consistent, reoccurring revenue, attractive margins and opportunities to grow the business with the customer Expertise to provide customized solutions


 
NASDAQ: LMB | 15 Pillar #2 - What We Do - Catering to Customer Needs & Budgets Operating Expense Professional ServicesCapital Projects On-Demand Services Maintenance & Operations Critical System Repairs Equipment Upgrades Rental Equipment Data Driven Solutions (CMMS, Insights, Asset Management) Mechanical Infrastructure Projects Energy Efficiency Upgrades Decarbonization Initiatives Building Automation Upgrades Consultative Services Facility Assessments


 
NASDAQ: LMB | 16 Limbach Location States with branch locations and potential tuck-in opportunity Potential new geographies for acquisitions Pillar #3 - Current & Target Geographies Tuck-In Acquisition Criteria ❑ Total Annual Revenue: $10-15M w/80%+ ODR Revenue ❑ +15% YoY ODR Growth ❑ Focus on Gross Profit Quality & Account Resources ❑ Ex: New Geography Acquisition Criteria ❑ Total Annual Revenue: $25M-40M w/Strong ODR Mix ❑ Local Niche with Mature Building Owner Relationships ❑ Ex: Disciplined and focused M&A strategy comprises “Tuck-In” and “Expansion” acquisitions of companies with consistent and scalable business models


 
NASDAQ: LMB | 17 Acquisition Value Creation Philosophy Value Creation Process: Reduction of Fixed Costs Common Organizational Structure Gross Profit Benchmarking Risk Management Tools Establish Account Focus Deploy On-Site Account Managers Evolved LMB Offerings Roll Out Fully Built out Account Teams 1. 2. 3. 4. 5. 6. 7. 8. Characteristics We Seek: Cultural Fit Alignment with our values and “we care” culture Niche Specialized expertise in our core vertical markets Building Owner Customers Commitment to building long-term relationships with Building Owners Our acquisition strategy prioritizes alignment and specialized value, ensuring that each partnership enhances our culture and niche, with a prioritized focus on building owner relationships while following a proven value creation process to drive growth and long-term impact. 1. 2. 3.


 
NASDAQ: LMB | 18 Pillar #3 - Recent Tuck-In Transaction – Closed September 3, 2024 Total consideration paid by Limbach at closing was $15 million (subject to typical working capital adjustments), sourced from available cash, with performance-based, contingent earn-outs totaling $5 million. Limbach Kent Island expects to contribute on average $30 million in revenue and $4 million in EBITDA on a full year basis. We believe the combination of Kent Island Mechanical and our Mid-Atlantic operating unit will create a dominant mechanical systems solutions provider in the high growth, Mid-Atlantic region. Significant share of revenues are owner-direct in nature, dovetailing well with Limbach’s focus on expanding segment opportunities. Attractive Business Model: - Compelling Valuation & Structure Geographic Proximity: - Attractive Operating Footprint Supports ODR Strategy: - Increased ODR Exposure - Attractive Customer Base Capability Expansion: - Value Creation Opportunities - Emphasis on Healthcare Sector Other: - Cultural Fit M&A CRITERIA: Strong relationships with key customers in the local healthcare end market which will allow us to expand our local healthcare resume.


 
NASDAQ: LMB | 19 Pillar #3 - Recent New Geography Transaction – Closed November 1, 2023 Total consideration paid by Limbach at closing was $13.5 million (subject to typical working capital adjustments), sourced from available cash, with performance-based, contingent earn-outs totaling $6.5 million. Industrial Air expects to contribute on average $30 million in revenue and $4 million in EBITDA on a full year basis. Greensboro, NC location is strategically located. Significant share of revenues are owner-direct in nature, dovetailing well with Limbach’s focus on expanding segment opportunities. Attractive Business Model: - Compelling Valuation & Structure Geographic Proximity: - Attractive Operating Footprint Supports ODR Strategy: - Increased ODR Exposure - Attractive Customer Base Capability Expansion: - Value Creation Opportunities - Emphasis on Industrial Sector Other: - Cultural Fit - Tech Focused M&A CRITERIA: Strong relationships with key customers in industrial and manufacturing end markets. These key customers have multiple facilities across the eastern US.


 
NASDAQ: LMB | 20 Strong Balance Sheet and Disciplined Capital Allocation Strategy Balance Sheet to fund organic growth and acquisitions: Used $12.7M to fund the Kent Island Mechanical Acquisition in 3Q’24 Investment in expanding and evolving service offerings Strategic acquisitions – disciplined acquisition criteria Key Balance Sheet Items September 30, 20241 December 31, 20231 Cash and Cash Equivalents $51.2 $59.8 Current Assets $217.1 $217.0 Current Liabilities $138.2 $145.1 Working Capital $78.9 $71.9 Net (Over) / Under Billing2 $(12.8) $(12.7) Revolver $10.0 $10.0 Term Loan — — Financing Liability (Sale and Leaseback Transaction) $5.4 $5.4 Vehicle Finance Leases $8.1 $7.3 Total Debt $23.5 $22.7 Net Debt (Cash)3 $(27.7) $(37.1) Equity $142.2 $120.9 Dollars in millions. 1. See the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2024. 2. For the calculation of the Company’s net billing position, refer to Note 4 to the condensed consolidated financial statements within the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2024. 3.The Company's calculation of the Net Debt (Cash) position is Cash and Cash Equivalents minus Total Debt. Totals may not foot due to rounding.


 
NASDAQ: LMB | 21 Financial Goals 1. Reflects guidance issued by the Company on November 5th, 2024. This guidance speaks only as of this date and this presentation does not constitute confirmation or updating of guidance. Free cash flow is defined as cash flow from operating activities, less changes in working capital and capital expenditures (excluding investment in rental equipment). See slide 28 for the non-GAAP reconciliation of Free Cash Flow. 2024 Guidance1 $520M to $540M Total Revenue Mix Shift 65% to 70% ODR ODR Revenue Growth 29% to 44% Total Gross Margin 26% to 27% Adjusted EBITDA $60M to $63M Adj. EBITDA Margin 11% to 12% Continued Strong Cash Flow 70% of Adj. EBITDA = Free Cash Flow Revenue Gross Margin / Adj. EBITDA Cash


 
NASDAQ: LMB | 22 Investment Highlights `` Large Market Opportunity with Tailwinds for Sustained Growth `` Strong Balance Sheet and Capital Allocation Strategy `` Strategy Combines Organic Growth and Strategic Acquisitions `` Limiting Fixed Costs and Smaller Projects Provide Flexible Business Model `` Reoccurring, Mission Critical Revenue and Economically Resilient Business `` Compelling Customer Value Creates Competitive Advantage `` Diversified Customers and Markets `` Revitalizing Existing Infrastructure to Focus on Sustainability and Cost Efficiency


 
APPENDIX 23


 
NASDAQ: LMB | 24 Operating and Financial Update QTD 3Q’24 Performance Dollars in millions. Totals may not foot due to rounding. 1. See the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2024. 2. See slide 27 for Non-GAAP Reconciliation Table. Revenue1 $127.8 Adjusted EBITDA2 + 27.2%+ 4.8% Year-Over-Year Change Year-Over-Year Change $133.9 Gross Profit and (Margin)1 + 15.6% Year-Over-Year Change $31.2 (24.5%) $36.1 (27.0%) $93.0 $40.9 $65.8 $61.9 3Q’23 3Q’24 3Q’23 3Q’24 $29.6 $6.5 $12.0 3Q’23 3Q’24 $13.6 $17.3$19.3


 
NASDAQ: LMB | 25 Operating and Financial Update YTD 3Q’24 Performance Dollars in millions. Totals may not foot due to rounding. 1. See the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2024. 2. See slide 27 for Non-GAAP Reconciliation Table. Revenue1 $373.7 Adjusted EBITDA2 + 25.4%+ 0.4% Year-Over-Year Change Year-Over-Year Change $375.1 Gross Profit and (Margin)1 + 17.1% Year-Over-Year Change $86.0 (23.0%) $100.7 (26.8%) $250.0 $125.1 $183.3 $190.3 3Q’23 3Q’24 3Q’23 3Q’24 $77.2 $23.5 $33.6 3Q’23 3Q’24 $34.2 $42.9 $52.4


 
NASDAQ: LMB | 26 Sustainability at Limbach Reducing Energy & Operating Costs Revitalizing Existing Infrastructure ENERGY STAR® Partner Community Engagement Diversity & Inclusion Social Responsibility Hearts & Minds Comp & Benefits Packages Industry Accredited Training Sustainability at PLANET GOVERNANCE PE O PL E ● We champion employee health and safety through our Hearts & Minds program ● We offer competitive compensation and a range of benefits and programs ● Our dedication to employee growth was recognized with the APEX award from Training magazine in 2023 & 2024 ● We take great pride in contributing to the communities where we live and operate through our Hearts & Hands ERG ● Recently recognized by Newsweek as one of America’s Most Loved Workplaces and Best Practice Institute as a top place to work People: Empowering Our Team & Supporting Our Communities Planet: Revitalizing Existing Infrastructure ● Building MEP systems are a major source of carbon emissions ● Our focus: Enhancing energy efficiency and cutting operating costs by revitalizing existing infrastructure ● ENERGY STAR® Partner: Providing facility assessments and engineered solutions Governance: Governing Responsibility ● Committed to transparency, accountability and ethical conduct ● Decisions are made in the best interest of stockholders and stakeholders ● Clear policies and procedures to mitigate risks and safeguard assets ● Board oversight of sustainability policies and programs ● Code of Conduct and Ethics / Whistleblower policy


 
NASDAQ: LMB | 27 Non-GAAP Reconciliation Table Reconciliation of Adjusted EBITDA Margin* *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 plus depreciation and amortization expense, interest expense (net), and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring or that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. Fiscal Year ended December 31, Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2020 2021 2022 2023 2024 2023 2024 2023 Revenue: $ 553,334 $ 568,209 $ 490,351 $ 496,782 $ 516,350 $ 133,920 $ 127,768 $ 375,131 $ 373,659 Net income (loss) ($ 1,775) $ 5,807 $ 6,714 $ 6,799 $ 20,754 $ 7,484 $7,192 $ 21,033 $15,505 Adjustments: Depreciation and amortization 6,286 6,171 5,948 8,158 8,244 2,741 1,892 8,261 5,751 Interest expense 6,285 8,627 2,568 2,144 2,046 468 437 1,375 1,615 Interest income — — — — (1,217) (626) (377) (1,734) (624) Non-cash stock-based compensation expense 1,766 1,068 2,601 2,742 4,910 1,603 1,140 4,323 3,374 Loss on early debt extinguishment 513 — 1,961 — 311 — — — 311 Impairment of goodwill 4,359 — — — — — — — — Change in fair value of warrant liability (588) 1,634 (14) — — — — — — Change in fair value of interest rate swap — — — (310) 124 267 (116) 130 (153) Severance expense — 622 — — — — — — — Loss on early termination of operating lease — — — 849 — — — — — CEO Transition costs — — — — 958 — — — 958 CFO Transition costs 576 — — — — — — — — Gain on embedded derivative (388) — — — — — — — — Restructuring costs — — — 6,016 1,770 565 317 827 1,089 Change in fair value of contingent consideration — — — 2,285 729 610 161 2,344 464 Income tax provision (benefit) (282) 1,182 2,763 2,809 7,346 3,394 2,760 5,462 5,407 Acquisition and other transaction costs — — 735 273 826 826 225 877 524 Adjusted EBITDA $ 16,752 $ 25,111 $ 23,276 $ 31,765 $ 46,801 $ 17,332 $ 13,631 $ 42,898 $ 34,221 Adjusted EBITDA Margin 3.0% 4.4% 4.7% 6.4% 9.1% 12.9% 10.7% 11.4% 9.2%


 
NASDAQ: LMB | 28 Non-GAAP Reconciliation Table Reconciliation of Free Cash Flow* 1. Represents non-cash activity associated with depreciation and amortization, provision for credit losses / doubtful accounts, stock-based compensation expense, operating lease expense, amortization of debt issuance costs, deferred income tax provision, gain or loss on sale of property and equipment, loss on early termination of operating lease, loss on early debt modification, changes in fair value of contingent consideration, change in fair value of warrant liability, impairment of goodwill, and changes in the fair value of the Company’s interest rate swap. 2. Excludes $38K and $3,602K of rental equipment purchases made during the three and nine months ended September 30, 2024, respectively. *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 plus depreciation and amortization expense, interest expense (net), and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring or that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. Fiscal Year ended December 31, Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2020 2021 2022 2023 2024 2023 2024 2023 Adjusted EBITDA: $ 16,752 $ 25,111 $ 23,276 $ 31,765 $ 46,801 $ 17,332 $ 13,631 $ 42,898 $ 34,221 Free Cash Flow: Net Income (loss) ($ 1,775) $ 5,807 $ 6,714 $ 6,799 $ 20,754 $ 7,484 $7,192 $ 21,033 $ 15,505 Non-cash operating activities(1) 16,568 13,767 16,997 17,634 18,222 5,873 4,220 17,246 12,816 Less: Purchases of property and equipment(2) (2,663) (1,483) (791) (993) (2,266) (313) (221) (2,585) (1,720) Free Cash Flow $ 12,130 $ 18,091 $ 22,920 $ 23,440 $ 36,710 $ 13,044 $ 11,191 $ 35,694 $26,601 Free Cash Flow Conversion % 72.4% 72.0% 98.5% 73.8% 78.4% 75.3% 82.1% 83.2% 77.7%


 
Contact Us INVESTOR RELATIONS Julie Kegley Financial Profiles jkegley@finprofiles.com 310.622.8246 @Limbach @Limbach @Limbach @LimbachFacilityServices@Limbachinc