Company Also Announces First Significant Data
Center Project Win
Limbach Holdings, Inc. (NASDAQ: LMB) (“Limbach” or the
“Company”) today announced that it has repurchased all of the
remaining outstanding shares of its Class A Preferred Stock
(“Preferred Stock”) for approximately $9.974 million, including
accrued dividends associated with the partial repurchase. The
Preferred Stock, which was issued on July 20, 2016 in connection
with the Company’s business combination, paid an 8% preferred
dividend, increasing to 12% over the six-year term of the
preferred, and was convertible (at the holder’s election) into 2.00
shares of the Company’s common stock for each share of Preferred
Stock held (as may be adjusted for any stock splits, reverse stock
splits or similar transactions), representing a conversion price of
$12.50 per share.
Significant New Win: Large Scale Data
Center Project
Limbach is pleased to announce the award of the Company’s first
large-scale data center project. The Company has noted in prior
presentations that it has identified the “Mission Critical”
industry, which includes structures such as data centers, as a
high-growth opportunity. Due to the size, scale and fast track
schedule of the project, Limbach will be executing the contract
under a joint venture with another significant regional mechanical
contracting company. Limbach will be providing preconstruction and
construction services on the project.
Charlie Bacon, CEO of Limbach commented, “This is a significant
win for Limbach. We are pleased to be working once again with
Turner Construction on this large, complex project, along with
another large, well-regarded mechanical contractor, with whom we
have joint ventured with on other significant projects in the past.
While we have always been engaged on smaller data centers, this is
our first large-scale data center project. The win strategically
opens the door to a projected major growth sector (large-scale data
centers). This win also reinforces our drive to be 1st Choice in
our customers’ minds. Turner is a long-standing customer and
Limbach provides services to them in all of Limbach’s locations. We
are excited to see our relationship expanding into this new Limbach
sector.”
Mr. Bacon continued, “We are also gratified that we have been
able to continue the process of reducing the Company's cost of
capital while also simplifying our capital structure. Today’s
repurchase of the remaining preferred stock is an accretive
transaction for our existing shareholders and removes a dilutive
overhang. Following this transaction our balance sheet remains
flexible, allowing us the ability to pursue strategic M&A
opportunities and fund long-term growth initiatives.”
Preferred Repurchase Terms
The Company repurchased the remaining 280,000 outstanding shares
of the Preferred Stock for $9.1 million, plus an accrued dividend
of $874,000, using the proceeds of a $10 million new term loan
under the Company’s current credit agreement with Fifth Third Bank,
which was amended pursuant to a Second Amendment to Credit
Agreement and Limited Waiver that is described more fully in the
Company’s Current Report on Form 8-K filed today with the U.S.
Securities and Exchange Commission. The loan carries a current
annual interest rate of approximately 6.7% and matures on April 12,
2019. Management expects the repurchase to be accretive to net
income.
About Limbach
Limbach Holdings, Inc. is an integrated building systems
provider, managing all components of mechanical, electrical,
plumbing and control systems, from system design and construction
through performance and maintenance. The Company engineers,
constructs and services the mechanical, plumbing, air conditioning,
heating, building automation, electrical and control systems in
both new and existing buildings. Customers include building owners
in the private, not-for-profit and public/government sectors. With
headquarters in Pittsburgh, PA., Limbach operates from 10
strategically located business units throughout the United States,
including Western Pennsylvania (Pittsburgh), Eastern Pennsylvania
(Warrington, PA), New Jersey (South Brunswick), New England
(Wilmington, MA), Ohio (Columbus and Athens, OH), Michigan (Pontiac
and Lansing, MI), Southern California (Seal Beach, CA), and
Mid-Atlantic (Laurel, MD). Our design engineering and innovation
center, Limbach Engineering & Design Services, is based in
Orlando, Florida. Harper Building Systems, a Limbach Holdings, Inc.
company, operates throughout Florida with offices in Tampa and Lake
Mary, north of Orlando. Our approximately 1,700 employees strive to
be the customer’s 1st Choice in terms of the services provided,
vertical markets and geographies served. Our commitment to safety,
advanced technology, human development and reliable execution has
enabled Limbach to attract and retain the industry’s top leadership
talent, skilled craftspeople and professional management staff.
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, the
effect of the Preferred Stock repurchase on our net income, the
benefits expected by the award of the large-scale data center
project, Limbach’s entry into the large-scale data center markets,
the joint venture with Turner Construction and other future
financial or business performance or strategies, results of
operations or financial condition. 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” 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. 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, which
is 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180112005574/en/
Investor Relations:The Equity Group Inc.Jeremy Hellman,
CFA, 212-836-9626Senior Associatejhellman@equityny.comorLimbach
Holdings, Inc.John T. Jordan, Jr., 301-623-4799Executive Vice
President and Chief Financial Officerjohn.jordan@limbachinc.com
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