Limbach Holdings Updates Full Year 2018 Outlook
November 15 2018 - 5:05PM
Business Wire
Limbach Holdings, Inc. (NASDAQ: LMB) (“Limbach” or the
“Company”) today filed a Form 12b-25 to formally extend its third
quarter 2018 filing deadline by 5 days. The Company expects to
report its third quarter 2018 financial results on Monday November
19, 2018 after market close. In addition, Limbach is updating its
outlook for the year ended December 31, 2018 as summarized
below.
As stated in the 12b-25 filing, the Company experienced
continued challenges in its Mid-Atlantic Branch, with higher than
expected costs. As a result, as of September 30, 2018, the Company
was not in compliance with the senior leverage and fixed charge
coverage ratio requirements under its senior credit facility (the
“Credit Agreement”). This caused the Company to be delayed in
completing its Form 10-Q while it analyzed the impact of such
noncompliance on its financial statements. The Company is actively
negotiating with its lenders for a waiver of the noncompliance
under the Credit Agreement and expects to enter into an agreement
for such waiver on or prior to November 19, 2018, which is the date
on which the Company plans to file the Form 10-Q. No assurance can
be made as to whether the Company will obtain such waiver on
acceptable terms or at all. The Company expects to report revenue
in the range of $393 million to $397 million and net loss in the
range of ($5.0) million to ($6.0) million, in each case for the
nine months ended September 30, 2018, compared to revenue of $354.3
million and net loss of $0.4 million for the same period of the
prior year.
2018 Guidance
As a result of the aforementioned write-downs in the
Mid-Atlantic region, the Company is reducing its previously
announced Adjusted EBITDA guidance, as summarized in the table
below.
FY 2018 Estimates Current
Previous Revenues $530 - $550 million $530 -
$550 million Adjusted EBITDA $8 - $10 million $18 - $20 million
* Use of Non-GAAP Financial
Measures
Adjusted EBITDA
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 (loss) 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
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. A
reconciliation of Adjusted EBITDA to net income (loss), the most
comparable GAAP measure, is provided below.
About Limbach
Founded in 1901, Limbach is the 10th largest mechanical systems
solutions firm in the United States as determined by Engineering
News Record. Limbach provides building infrastructure services,
with an expertise in the design, installation and maintenance of
HVAC and mechanical, electrical, and plumbing systems for a
diversified group of commercial and institutional building owners.
Limbach employs more than 1,500 employees in 14 offices throughout
the United States. The Company’s full life-cycle capabilities, from
concept design and engineering through system commissioning and
recurring 24/7 service and maintenance, position Limbach as a
value-added and essential partner for building owners, construction
managers, general contractors and energy service companies.
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, ability to report
our third quarter financial results, or 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 incorrect. 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.
These risks also include, among others, that we may incur
additional project-related costs in our mid-Atlantic branch, that
we may be unable to obtain a waiver for noncompliance under our
credit agreement and/or complete the preparation of our financial
statements and Quarterly Report on Form 10-Q for the quarter ended
September 20, 2018 by November 19, 2018. Please refer to our most
recent annual report on Form 10-K for the year ended December 31,
2017 and subsequent reports and filings, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181115006090/en/
Investor Relations:The Equity Group Inc.Jeremy Hellman,
CFASenior Associate(212) 836-9626 / jhellman@equityny.comorLimbach
Holdings, Inc.John T. Jordan, Jr.Executive Vice President and Chief
Financial Officer(301) 623-4799 / john.jordan@limbachinc.com
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