Limbach Holdings (LMB) Misses Q1 EPS by 22c, Revenues Miss; Offers FY21 Revenues Guidance Below Consensus

Limbach Holdings (NASDAQ: LMB) reported Q1 EPS of ($0.25), $0.22 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $113.3 million versus the consensus estimate of $122.15 million.

Charlie Bacon, Limbach’s President and Chief Executive Officer, said, “This year is an inflection point for Limbach as we look to accelerate towards an owner-driven business model. We experienced the initial validation of this strategy during the first quarter as our gross margin expanded 210 basis points to 15.2% compared to last year’s first quarter. Our GCR revenue declined compared with the prior year, consistent with our intentional shift to a more rigorous project selection process that emphasizes risk mitigation and improved profitability. The near-term impact of this strategy is expected to be a reduction in GCR revenue in 2021, but accompanied by a stronger gross margin and greater consistency of execution and reduced risk. Our ODR segment continued to generate strong performance and accounted for a larger share of our consolidated revenue than during last year’s first quarter, a trend we expect to continue as the year progresses.”

Mr. Bacon continued, “We continue to see business activity accelerate from the low point in late 2020 as the construction industry returns to a more normal state of activity. At this time, we are introducing guidance for the full year, and are forecasting revenue to be between $480 million and $520 million, and Adjusted EBITDA of $23 million to $27 million. We also expect the second half of the year to account for a greater majority of our revenue and Adjusted EBITDA than it has in prior years given the current business cycle.”

GUIDANCE:

Limbach Holdings sees FY2021 revenue of $480-520 million, versus the consensus of $539.65 million.

• With respect to projected fiscal year 2021 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable effort due to the high variability, complexity and low visibility with respect to taxes and other items, which are excluded from Adjusted EBITDA. The Company expects the variability of this item to have a potentially unpredictable, and potentially significant, impact on future GAAP financial results.

For earnings history and earnings-related data on Limbach Holdings (LMB) click here.

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