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Concrete Pumping (BBCP)

Filed: 14 Jun 21, 4:09pm

Exhibit 99.1

 

ex_232482img001.jpg

 

 

Concrete Pumping Holdings Reports Strong Second Quarter Fiscal Year 2021 Results

 

DENVER, CO June 14, 2021 – Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for its second quarter of fiscal year 2021 ended April 30, 2021.

 

Second Quarter Fiscal Year 2021 Summary vs. Second Quarter of Fiscal Year 2020 (where applicable)

 

 

Revenue increased 4% to $76.9 million compared to $74.0 million.

 

Gross margin increased 30 basis points to 43.3% compared to 43.0%.

 Net loss attributable to common shareholders improved significantly to $11.4 million or $(0.21) per diluted share, compared to a net loss attributable to common shareholders of $56.2 million or $(1.06) per diluted share.
 The second quarter of 2021 included a $11.5 million non-cash loss on the revaluation of warrant liabilities compared to a $3.3 million non-cash gain in the same period of fiscal 2020.
 

The second quarter of 2020 included a $57.9 million non-cash goodwill and intangibles impairment charge due to the COVID-19 impact depressing the Company’s market capitalization.

 

Adjusted EBITDA1 increased 7% to $25.0 million compared to $23.5 million, with adjusted EBITDA margin increasing 80 basis points to 32.6% compared to 31.8%.

 

Amounts outstanding under debt agreements was $376.1 million with net debt1 of $362.4 million. Total available liquidity increased to $134.9 million as of April 30, 2021 compared to $118.4 million as of January 31, 2021.

 

Management Commentary

 

“Our second quarter continued to highlight the resilience of our business, the flexibility of our projects and the profitability of our model,” said Bruce Young, CEO of Concrete Pumping Holdings. “We experienced a record-setting cold weather event in our South and Central regional markets, yet we delivered a quarter that met our internal expectations. This included continued growth in our market share, strength in residential and infrastructure projects, and recovery in our commercial work. We also continued to demonstrate our strong financial profile with approximately $29 million in year-to-date free cash flow1 that contributed to us improving total available liquidity to $134.9 million. Given our execution to date, we remain in a strong position to execute upon our strategic priorities and financial outlook in 2021.”

 


1 Adjusted EBITDA, Adjusted EBITDA margin, net debt and free cash flow are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definitions of these non-GAAP financial measures and a reconciliation to their most comparable GAAP measures.

 

 

Second Quarter Fiscal Year 2021 Financial Results

 

Revenue in the second quarter of fiscal year 2021 increased 4% to $76.9 million compared to $74.0 million in the second quarter of fiscal year 2020. The increase was driven by increased revenue from the Company’s U.K. Operations and its U.S. Concrete Waste Management business.

 

Gross profit in the second quarter of fiscal year 2021 increased 5% to $33.3 million compared to $31.9 million in the year-ago quarter. Gross margin improved to 43.3% compared to 43.0% in the prior year quarter.

 

G&A expenses for the fiscal 2021 second quarter were $26.5 million compared to $26.4 million in the fiscal 2020 second quarter. As a percent of revenue, G&A expenses were 34.4% for the fiscal 2021 second quarter compared to 35.6% in the fiscal 2020 second quarter. Excluding amortization of intangible assets and stock-based compensation expense, G&A expenses were down $0.3 million year-over-year to $16.2 million (21.1% of revenue) from $16.4 million (22.2% of revenue).

 

Net loss attributable to common shareholders improved significantly to $11.4 million or $(0.21) per diluted share, compared to a net loss attributable to common shareholders of $56.2 million or $(1.06) per diluted share. As previously disclosed, the Company recently determined that its outstanding warrants should be accounted for as liabilities and recorded at fair value on the date of the transaction and subsequently re-measured to fair value at each reporting date. For the three months ended April 30, 2021 and 2020, the Company recognized a non-cash loss of $11.5 million and a non-cash gain of $3.3 million, respectively, associated with the change in fair value of warrant liabilities.

 

Excluding the after-tax impact from the $57.9 million goodwill and intangibles impairment charge in the second quarter of fiscal 2020 and the non-cash gains or losses from the revaluation of warrant liabilities during both years, net income to common shareholders for the second quarter of 2021 was $0.1 million or $0.00 per diluted share versus net loss to common shareholders of $3.9 million or $(0.08) per diluted share.

 

Adjusted EBITDA in the second quarter of fiscal year 2021 increased 7% to $25.0 million compared to $23.5 million in the year-ago quarter. Adjusted EBITDA margin increased to 32.6% compared to 31.8% in the year-ago quarter, with the improvement mainly due to the increase in revenues

 

Liquidity

 

On April 30, 2021, the Company had debt outstanding of $376.1 million, net debt of $362.4 million and total available liquidity of $134.9 million.

 

Segment Results

 

U.S. Concrete Pumping. Revenue in the second quarter of fiscal 2021 was $56.2 million compared to $57.5 million in the year-ago quarter. The decrease was primarily driven by severe weather conditions in Texas. Net loss in the second quarter improved to $0.9 million compared to a net loss of $44.3 million in the prior year quarter, which included the aforementioned goodwill impairment. Adjusted EBITDA was flat at $16.3 million compared to the year-ago quarter.

 

U.K. Operations. Revenue in the second quarter of fiscal 2021 increased 41% to $11.9 million compared to $8.4 million in the year-ago quarter. The increase was attributable to the region’s recovery from the impacts of COVID-19. Net income in the second quarter improved to $0.4 million compared to a net loss of $16.0 million in the prior year second quarter, which included the goodwill impairment. Adjusted EBITDA improved 64% to $4.1 million compared to $2.5 million in the year-ago quarter.

 

U.S. Concrete Waste Management Services. Revenue in the second quarter of fiscal 2021 increased 8% to $9.0 million compared to $8.3 million in the year-ago quarter. The increase was due to organic growth, pricing improvements and new product offerings. Net income in the second quarter was $0.8 million compared to $0.9 million in the prior year second quarter. Adjusted EBITDA was $4.0 million compared to $4.1 million in the year-ago quarter.

 

 


Fiscal Year 2021 Outlook

 

The Company continues to expect fiscal year 2021 revenue to range between $300.0 million to $310.0 million, Adjusted EBITDA to range between $105.0 million to $110.0 million, and free cash flow to range between $47.5 million and $52.5 million. The midpoint of the Company's free cash flow outlook implies an 11% yield to its current market capitalization of approximately $470 million.

 

Conference Call

 

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2021 results.

 

Date: Monday, June 14, 2021

Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)

Toll-free dial-in number: 1-877-407-9039

International dial-in number: 1-201-689-8470

Conference ID: 13719885

 

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

 

The conference call will be broadcast live and available for replay at "http://public.viavid.com/player/index.php?id=145001" and via the investor relations section of the Company’s website at www.concretepumpingholdings.com.

 

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through July 5, 2021.

 

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13719885 

 

About Concrete Pumping Holdings

 

Concrete Pumping Holdings is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan seeks to provide a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of April 30, 2021, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from approximately 30 locations, and route-based concrete waste management services from 16 locations in the U.S. and 1 shared location in the U.K. For more information, please visit http://www.concretepumpingholdings.com or the Company’s brand websites at http://www.brundagebone.com, http://www.camfaud.co.uk, or http://www.eco-pan.com/.

 

 

 

 

ForwardLooking Statements

 

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “outlook” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance, including the Company's fiscal year 2021 outlook. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impacts on the Company related to the recent accounting restatement, material weakness in internal control over financial reporting and the assessment of complex accounting issues, as disclosed in the Company's From 10-K/A filed with the Securities and Exchange Commission (the "SEC") on June 11, 2021 (The "Amended 10-K"); the impacts of the COVID-19 pandemic and related economic conditions on the Company; the outcome of any legal proceedings or demand letters that may be instituted against or sent to the Company or its subsidiaries; the ability of the Company to grow and manage growth profitably and retain its key employees; the ability to complete targeted acquisitions and realize the expected benefits from recent acquisitions; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission, including the risk factors in the Company's latest Annual Report on Form 10-K, the Amended 10-K, and Quarterly Reports on Form 10-Q. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

 

Non-GAAP Financial Measures

 

Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management also uses this non-GAAP financial measure to compare the Company’s performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and annual financial reports prepared for the Company’s board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Company’s ongoing operating results and in comparing the Company’s financial results with competitors who also present similar non-GAAP financial measures.

 

Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, loss on debt extinguishment, stock-based compensation, other income, net, and other adjustments. Adjusted EBITDA is not pro forma for acquisitions. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented. See below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP.

 

Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor the Company’s leverage and evaluate the Company’s consolidated balance sheet. See “Non-GAAP Measures (Reconciliation of Net Debt)” below for a reconciliation of Net Debt to amounts outstanding under debt agreements calculated in accordance with GAAP.

 

Free cash flow is defined as Adjusted EBITDA less net capital expenditures and cash paid for interest. This measure is not a substitute for cash flow from operations and does not represent the residual cash flow available for discretionary expenditures, since certain non-discretionary expenditures, such as debt servicing payments, are not deducted from the measure. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor and evaluate the cash flow yield of the business.

 

 

 

 

The financial statement tables that accompany this press release include a reconciliation of Adjusted EBITDA, net debt and free cash flow to the applicable most comparable U.S. GAAP financial measure. However, the Company has not reconciled the forward-looking Adjusted EBITDA guidance range and free cash flow range included in this press release to the most directly comparable forward-looking GAAP measures because this cannot be done without unreasonable effort due to the lack of predictability regarding the various reconciling items such as provision for income taxes and depreciation and amortization.

 

Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Company’s business. Other companies may calculate Adjusted EBITDA, net debt and free cash flow differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.

 

As a result of the business combination between our predecessor, Industrea Acquisition Corp., and the private operating company formerly called Concrete Pumping Holdings, Inc. (the “Business Combination”), the Company is the acquirer for accounting purposes and CPH is the acquiree and accounting predecessor. The Company’s financial statement presentation distinguishes the Company’s presentations into two distinct periods, the period up to the Business Combination closing date (labeled “Predecessor”) and the period including and after that date (labeled “Successor”). The Business Combination was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. As the underlying business and financial results of the Successor and Predecessor entities are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination, management has combined the fiscal year 2019 results of the Predecessor and Successor periods for comparability in certain tables below. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, the tables below present the non-GAAP combined results for the fiscal year 2019.

 

Contact:

 

Company:

Iain Humphries

Chief Financial Officer

1-303-289-7497

Investor Relations:

Gateway Investor Relations

Cody Slach

1-949-574-3860

BBCP@gatewayir.com 

 

 

 

Concrete Pumping Holdings, Inc.

Consolidated Balance Sheets

 

  

April 30,

  

October 31,

 

(in thousands, except per share amounts)

 

2021

  

2020

 

ASSETS

        
         

Current assets:

        

Cash and cash equivalents

 $13,714  $6,736 

Trade receivables, net

  41,800   44,343 

Inventory

  4,555   4,630 

Income taxes receivable

  352   1,602 

Prepaid expenses and other current assets

  7,204   2,694 

Total current assets

  67,625   60,005 
         

Property, plant and equipment, net

  304,865   304,254 

Intangible assets, net

  171,213   183,839 

Goodwill

  225,012   223,154 

Other non-current assets

  712   1,753 

Deferred financing costs

  2,088   753 

Total assets

 $771,515  $773,758 
         

LIABILITIES AND STOCKHOLDERS' EQUITY

        
         

Current liabilities:

        

Revolving loan

 $1,087  $1,741 

Term loans, current portion

  -   20,888 

Current portion of capital lease obligations

  100   97 

Accounts payable

  6,622   6,587 

Accrued payroll and payroll expenses

  10,838   13,065 

Accrued expenses and other current liabilities

  21,618   18,879 

Income taxes payable

  601   1,055 

Total current liabilities

  40,866   62,312 
         

Long term debt, net of discount for deferred financing costs

  368,388   343,906 

Capital lease obligations, less current portion

  330   380 

Deferred income taxes

  65,618   68,019 

Warrant liabilities

  18,485   7,031 

Total liabilities

  493,687   481,648 
         
         

Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of April 30, 2021 and October 31, 2020

  25,000   25,000 
         

Stockholders' equity

        

Common stock, $0.0001 par value, 500,000,000 shares authorized, 56,575,186 and 56,463,992 issued and outstanding as of April 30, 2021 and October 31, 2020, respectively

  6   6 

Additional paid-in capital

  371,703   367,681 

Treasury stock

  (461)  (131)

Accumulated other comprehensive income

  4,563   (606)

(Accumulated deficit) retained earnings

  (122,983)  (99,840)

Total stockholders' equity

  252,828   267,110 
         

Total liabilities and stockholders' equity

 $771,515  $773,758 

 

 

 

 

Concrete Pumping Holdings, Inc.

Consolidated Statements of Operations

 

  

Three Months Ended

  

Six Months Ended

 

(in thousands, except share and per share amounts)

 

April 30, 2021

  

April 30, 2020

  

April 30, 2021

  

April 30, 2020

 
                 

Revenue

 $76,873  $74,041  $147,294  $147,980 

Cost of operations

  43,570   42,174   84,128   83,965 

Gross profit

  33,303   31,867   63,166   64,015 

Gross margin

  43.3%  43.0%  42.9%  43.3%
                 

General and administrative expenses

  26,472   26,381   48,860   52,988 
Goodwill and intangibles impairment  -   57,944   -   57,944 

Transaction costs

  55   -   84   - 

Income (loss) from operations

  6,776   (52,458)  14,222   (46,917)
                 

Interest expense, net

  (6,029)  (8,765)  (12,929)  (18,268)

Loss on extinguishment of debt

  -   -   (15,510)  - 
Change in fair value of warrant liabilities  (11,456)  3,254   (11,456)  2,864 

Other income, net

  26   34   52   103 

Loss before income taxes

  (10,683)  (57,935)  (25,621)  (62,218)
                 

Income tax expense (benefit)

  170   (2,221)  (2,478)  (3,368)

Net loss

  (10,853)  (55,714)  (23,143)  (58,850)
                 

Less preferred shares dividends

  (499)  (470)  (1,006)  (943)

Less undistributed earnings allocated to preferred shares

  -   -   -   - 
                 

Loss available to common shareholders

 $(11,352) $(56,184) $(24,149) $(59,793)
                 

Weighted average common shares outstanding

                

Basic

  53,465,799   52,782,663   53,303,302   52,752,884 

Diluted

  53,465,799   52,782,663   53,303,302   52,752,884 
                 

Net (loss) income per common share

                

Basic

 $(0.21) $(1.06) $(0.45) $(1.13)

Diluted

 $(0.21) $(1.06) $(0.45) $(1.13)

 

 

 

 

Concrete Pumping Holdings, Inc.

Consolidated Statements of Cash Flows

 

  

Six Months Ended

 

(in thousands, except per share amounts)

 

April 30, 2021

  

April 30, 2020

 
         

Net income (loss)

 $(23,143) $(58,850)

Adjustments to reconcile net income to net cash provided by operating activities:

        

Goodwill and intangibles impairment

  -   57,944 

Depreciation

  13,991   13,015 

Deferred income taxes

  (2,926)  (3,515)

Amortization of deferred financing costs

  1,419   2,076 

Amortization of intangible assets

  13,853   17,147 

Stock-based compensation expense

  4,022   2,850 

Change in fair value of warrant liabilities

  11,456   (2,864)

Loss on extinguishment of debt

  15,510   - 

Net (loss) gain on the sale of property, plant and equipment

  (869)  (477)

Payment of contingent consideration in excess of amounts established in purchase accounting

  -   (526)

Net changes in operating assets and liabilities (net of acquisitions):

        

Trade receivables, net

  3,135   4,009 

Inventory

  161   127 

Prepaid expenses and other current assets

  (3,377)  (5,209)

Income taxes payable, net

  750   301 

Accounts payable

  (145)  (101)

Accrued payroll, accrued expenses and other current liabilities

  2,359   1,060 

Net cash provided by operating activities

  36,196   26,987 
         

Cash flows from investing activities:

        

Purchases of property, plant and equipment

  (16,672)  (23,305)

Proceeds from sale of property, plant and equipment

  3,687   3,607 

Net cash used in investing activities

  (12,985)  (19,698)
         

Cash flows from financing activities:

        

Proceeds on long term debt

  375,000   - 

Payments on long term debt

  (381,206)  (10,444)

Proceeds on revolving loan

  138,239   143,559 

Payments on revolving loan

  (139,004)  (127,404)

Payment of debt issuance costs

  (8,464)  - 

Payments on capital lease obligations

  (47)  (45)

Purchase of treasury stock

  (330)  (131)

Payment of contingent consideration established in purchase accounting

  -   (1,161)

Net cash provided by (used in) financing activities

  (15,812)  4,374 

Effect of foreign currency exchange rate on cash

  (421)  (1,088)

Net increase in cash and cash equivalents

  6,978   10,575 

Cash and cash equivalents:

        

Beginning of period

  6,736   7,473 

End of period

 $13,714  $18,048 

 

 

 

 

Concrete Pumping Holdings, Inc.

Segment Revenue

 

  

Three Months Ended

  

Change

 

(in thousands)

 April 30, 2021  April 30, 2020  

$

  

%

 

U.S. Concrete Pumping

 $56,168  $57,459  $(1,291)  -2.2%

U.K. Operations

  11,853   8,401   3,452   41.1%

U.S. Concrete Waste Management Services

  9,008   8,306   702   8.5%

Corporate

  625   625   -   0.0%

Intersegment

  (781)  (750)  (31)  4.1%
  $76,873  $74,041  $2,832   3.8%

 

  

Six Months Ended

  

Change

 

(in thousands)

 

April 30, 2021

  

April 30, 2020

  $  

%

 

U.S. Concrete Pumping

 $108,484  $112,564  $(4,080)  -3.6%

U.K. Operations

  21,633   19,086   2,547   13.3%

U.S. Concrete Waste Management Services

  17,430   16,589   841   5.1%

Corporate

  1,250   1,250   -   0.0%

Intersegment

  (1,503)  (1,509)  6   -0.4%
  $147,294  $147,980  $(686)  -0.5%

 

 

 

 

Concrete Pumping Holdings, Inc.

Segment Adjusted EBITDA and Net Income (Loss)

 

  

Net Income (Loss)

  

Adjusted EBITDA

 
  

Three Months Ended

  

Three Months Ended

         

(in thousands, except percentages)

 April 30, 2021  April 30, 2020  April 30, 2021  April 30, 2020  

$ Change

  

% Change

 

U.S. Concrete Pumping

 $(925) $(44,303) $16,306  $16,319  $(13)  -0.1%

U.K. Operations

  402   (15,955)  4,114   2,516   1,598   63.5%

U.S. Concrete Waste Management Services

  833   859   4,002   4,055   (53)  -1.3%

Corporate

  (11,163)  3,685   625   625   (0)  0.0%
  $(10,853) $(55,714) $25,047  $23,515  $1,532   6.5%

 

 

  

Net Income (Loss)

  

Adjusted EBITDA

 
  

Six Months Ended

  

Six Months Ended

         

(in thousands, except percentages)

 

April 30, 2021

  

April 30, 2020

  

April 30, 2021

  

April 30, 2020

  

$ Change

  

% Change

 

U.S. Concrete Pumping

 $(13,602) $(46,790) $31,592  $33,166  $(1,574)  -4.7%

U.K. Operations

  (129)  (16,848)  6,861   5,127   1,734   33.8%

U.S. Concrete Waste Management Services

  1,450   1,225   7,702   7,804   (102)  -1.3%

Corporate

  (10,862)  3,563   1,250   1,250   (0)  0.0%
  $(23,143) $(58,850) $47,405  $47,347  $58   0.1%

 

 

 

 

Concrete Pumping Holdings, Inc.

Quarterly Financial Performance

 

(dollars in millions)

 

Revenue

  Net Income (Loss)1  Adjusted EBITDA2  Capital Expenditures  Adjusted EBITDA less Capital Expenditures 
                     

Q1 2017

 $46  $(6) $14  $4  $9 

Q2 2017

 $51  $3  $16  $3  $13 

Q3 2017

 $55  $4  $18  $1  $18 

Q4 2017

 $60  $1  $20  $14  $6 

Q1 2018

 $53  $18  $16  $7  $9 

Q2 2018

 $56  $5  $18  $1  $17 

Q3 2018

 $66  $5  $22  $11  $11 

Q4 2018

 $68  $1  $22  $9  $13 

Q1 2019

 $58  $(26) $17  $11  $6 

Q2 2019

 $62  $(10) $18  $13  $5 

Q3 2019

 $79  $3  $31  $4  $27 

Q4 2019

 $84  $1  $30  $5  $25 

Q1 2020

 $74  $(3) $24  $20  $4 

Q2 2020

 $74  $(59) $24  $4  $20 

Q3 2020

 $77  $3  $30  $6  $24 

Q4 2020

 $79  $(2) $30  $6  $24 

Q1 2021

 $70  $(12) $22  $8  $15 
Q2 2021 $77  $(11) $25  $5  $20 

 

1 The Company (1) restated its consolidated financial statements as of October 31, 2019, for the Successor period from December 6, 2018 through October 31, 2019 and the unaudited interim periods within that period and (2) revised its consolidated financial statements as of October 31, 2020, for the fiscal year then ended and the unaudited interim periods within fiscal 2020 to reflect the Company's warrants as liabilities. For further information, refer to the Company's 10-K/A filed on June 11, 2021 with the Securities and Exchange Commission.

 

2 Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a reconciliation of such measure to its most comparable GAAP measure.

 

 

 

 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

 

 

Predecessor

 

(dollars in thousands)

Q1 2017

 

Q2 2017

 

Q3 2017

 

Q4 2017

 

Q1 2018

 

Q2 2018

 

Q3 2018

 

Q4 2018

 

November 1,

2018
through
December 5,
2018

 

Consolidated

                           

Net income (loss)

$(6,296)$2,556 $3,923 $730 $17,558 $4,610 $4,825 $1,389 $(22,575)

Interest expense, net

 6,386  6,095  5,456  4,811  5,087  5,126  5,477  5,735  1,644 

Income tax expense (benefit)

 646  592  1,822  697  (13,544) 1,211  1,701  848  (4,192)

Depreciation and amortization

 6,229  5,919  6,390  8,616  6,110  6,293  6,150  7,070  2,713 

EBITDA

 6,965  15,162  17,591  14,854  15,211  17,240  18,153  15,042  (22,410)

Transaction expenses

 5,304  -  (465) (349) 8  1,117  1,395  5,070  14,167 

Loss on debt extinguishment

 -  213  279  4,669  -  -  -  -  16,395 

Stock based compensation

 -  -  -  -  93  94  94  -  - 

Other expense (income)

 (39) (32) (19) (84) (12) (8) (14) (21) (6)

Goodwill and intangibles impairment

 -  -  -  -  -  -  -  -  - 

Other adjustments

 1,172  1,108  1,051  985  1,324  (471) 2,674  2,161  1,442 

Adjusted EBITDA

$13,402 $16,451 $18,437 $20,075 $16,624 $17,972 $22,302 $22,252 $9,588 

 

 

(As Restated)

                   
 

Successor

 

S&P Combined (non-GAAP)

 

Successor

 

(dollars in thousands)

December 6, 2018
through
January 31,
2019

 

Q1 2019

 

Q2 2019

 

Q3 2019

 

Q4 2019

 

Q1 2020

 

Q2 2020

 

Q3 2020

 

Q4 2020

 

Q1 2021

 

Q2 2021

 

Consolidated

                                 

Net income (loss)

 (6,152) (28,727) (24,419) 7,318  6,850  (3,137) (55,714) 247  (2,648)$(12,290)$(10,853)

Interest expense, net

 5,592  7,236  9,318  9,843  10,127  9,503  8,765  8,364  7,777  6,900  6,029 

Income tax expense (benefit)

 (2,765) (6,957) 1,572  (1,922) (188) (1,147) (2,221) (462) (1,147) (2,648) 170 

Depreciation and amortization

 8,374  11,087  12,132  16,477  15,669  15,085  15,076  14,665  16,827  13,838  14,007 

EBITDA

 5,049  (17,361) (1,397) 31,716  32,458  20,304  (34,094) 22,814  20,809  5,800  9,353 

Transaction expenses

 -  14,167  1,282  176  63  -  -  -  -  29  55 

Loss on debt extinguishment

 -  16,395  -  -  -  -  -  -  -  15,510  - 

Stock based compensation

 -  -  361  1,625  1,633  1,467  1,383  1,357  7,247  672  3,350 

Change in fair value of warrant liabilities

 2,522  2,522  14,774  (4,556) (6,249) 391  (3,254) 2,734  391  -  11,456 

Other expense (income)

 (11) (17) (20) (28) 12  (69) (33) (36) (31) (26) (26)

Goodwill and intangibles impairment

 -  -  -  -  -  -  57,944  -  -  -  - 

Other adjustments

 -  1,442  3,234  1,627  1,635  1,741  1,569  3,169  1,498  373  859 

Adjusted EBITDA

$7,560 $17,148 $18,234 $30,560 $29,552 $23,834 $23,515 $30,038 $29,914 $22,358 $25,047 

 

Note: The Company restated/revised its 2019/2020 financial statements. Further details discussed above.

 

 

 

 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

 

  

Three Months Ended

  

Six Months Ended

 

(dollars in thousands)

 

April 30, 2021

  

April 30, 2020

  

April 30, 2021

  

April 30, 2020

 

Consolidated

                

Net income (loss)

 $(10,853) $(55,714) $(23,143) $(58,850)

Interest expense, net

  6,029   8,765   12,929   18,268 

Income tax expense (benefit)

  170   (2,221)  (2,478)  (3,368)

Depreciation and amortization

  14,007   15,076   27,844   30,162 

EBITDA

  9,353   (34,094)  15,152   (13,788)

Transaction expenses

  55   -   84   - 

Loss on debt extinguishment

  -   -   15,510   - 

Stock based compensation

  3,350   1,383   4,022   2,850 

Change in fair value of warrant liabilities

  11,456   (3,254)  11,456   (2,864)

Other expense (income)

  (26)  (33)  (52)  (103)

Goodwill and intangibles impairment

  -   57,944   -   57,944 

Other adjustments

  859   1,569   1,233   3,308 

Adjusted EBITDA

 $25,047  $23,515  $47,405  $47,347 
                 

U.S. Concrete Pumping

                

Net income (loss)

 $(925) $(44,303) $(13,602) $(46,790)

Interest expense, net

  5,247   8,096   11,370   16,828 

Income tax expense (benefit)

  (381)  (2,751)  (3,204)  (4,138)

Depreciation and amortization

  9,405   10,144   18,677   20,148 

EBITDA

  13,346   (28,814)  13,241   (13,952)

Transaction expenses

  55   -   84   - 

Loss on debt extinguishment

  -   -   15,510   - 

Stock based compensation

  3,350   1,383   4,022   2,850 

Other expense (income)

  (12)  (7)  (24)  (17)

Goodwill and intangibles impairment

  -   43,500   -   43,500 

Other adjustments

  (433)  257   (1,241)  785 

Adjusted EBITDA

 $16,306  $16,319  $31,592  $33,166 
                 

U.K. Operations

                

Net income (loss)

 $402  $(15,955) $(129) $(16,848)

Interest expense, net

  782   669   1,559   1,440 

Income tax expense (benefit)

  79   509   (98)  394 

Depreciation and amortization

  2,071   2,065   4,081   4,261 

EBITDA

  3,334   (12,712)  5,413   (10,753)

Transaction expenses

  -   -   -   - 

Loss on debt extinguishment

  -   -   -   - 

Stock based compensation

  -   -   -   - 

Other expense (income)

  (12)  (26)  (26)  (86)

Goodwill and intangibles impairment

  -   14,444   -   14,444 

Other adjustments

  792   810   1,474   1,522 

Adjusted EBITDA

 $4,114  $2,516  $6,861  $5,127 
                 

U.S. Concrete Waste Management Services

                

Net income (loss)

 $833  $859  $1,450  $1,225 

Interest expense, net

  -   -   -   - 

Income tax expense (benefit)

  348   34   584   239 

Depreciation and amortization

  2,323   2,660   4,670   5,339 

EBITDA

  3,504   3,553   6,704   6,803 

Transaction expenses

  -   -   -   - 

Loss on debt extinguishment

  -   -   -   - 

Stock based compensation

  -   -   -   - 

Other expense (income)

  (2)  -   (2)  - 

Goodwill and intangibles impairment

  -   -   -   - 

Other adjustments

  500   502   1,000   1,001 

Adjusted EBITDA

 $4,002  $4,055  $7,702  $7,804 
                 

Corporate

                

Net income (loss)

 $(11,163) $3,685  $(10,862) $3,563 

Interest expense, net

  -   -   -   - 

Income tax expense (benefit)

  124   (13)  240   137 

Depreciation and amortization

  208   207   416   414 

EBITDA

  (10,831)  3,879   (10,206)  4,114 

Transaction expenses

  -   -   -   - 

Loss on debt extinguishment

  -   -   -   - 

Stock based compensation

  -   -   -   - 

Change in fair value of warrant liabilities

  11,456   (3,254)  11,456   (2,864)

Other expense (income)

  -   -   -   - 

Goodwill and intangibles impairment

  -   -   -   - 

Other adjustments

  -   -   -   - 

Adjusted EBITDA

 $625  $625  $1,250  $1,250 

 

Note: The Company revised its 2020 financial statements. Further details discussed above.

 

 

 

 

Concrete Pumping Holdings, Inc.

 

Reconciliation of Free Cash Flow

 
     
  

Six Months Ended

 

(dollars in millions)

 

April 30, 2021

 

Adjusted EBITDA

 $47.4 

Less net capital expenditures

  (13.0)

Less cash paid for interest

  (5.9)

Free cash flow

 $28.5 

 

 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Debt

 

  

January 31,

  

April 30,

  

July 31,

  

October 31,

  

January 31,

  

April 30,

  

Change in Net

 

(in thousands)

 

2020

  

2020

  

2020

  

2020

  

2021

  

2021

  

Debt Q1'21 to Q2'21

 

Term loan outstanding

  396,871   391,650   386,427   381,205   -   -   - 
Senior Notes  -   -   -   -   375,000   375,000   - 

Revolving loan draws outstanding

  38,661   39,211   12,990   1,741   7,687   1,087   (6,600)

Less: Cash

  (2,636)  (18,048)  (4,131)  (6,736)  (2,273)  (13,714)  (11,441)

Net debt

  432,896   412,813   395,286   376,210   380,414   362,373   (18,041)