Core Points - Concrete Pumping Holdings, Inc. announced a special cash dividend of $1.00 per share, totaling approximately $53 million, to be paid on or about February 3, 2025, to stockholders of record as of January 24, 2025 [1] - The payment of the special dividend is contingent upon the closing of the company's previously announced offering of $425 million in senior secured second lien notes due 2032 [1] Company Overview - Concrete Pumping Holdings is a leading provider of concrete pumping and waste management services in the U.S. and U.K., operating under established national brands such as Brundage-Bone Concrete Pumping, Camfaud Group Limited, and Eco-Pan [3] - The company operates approximately 90 locations across 22 states in the U.S. and 35 locations in the U.K. for concrete pumping services, along with 20 locations in the U.S. and one in the U.K. for route-based concrete waste management services [3] - The company's large fleet of specialized pumping equipment and trained operators enables it to deliver efficient concrete placement solutions, resulting in labor cost savings, reduced placement times, enhanced safety, and improved construction quality [3]

Bond Offering and Use of Proceeds - The company successfully upsized its private offering of senior secured second lien notes to $425 million, an increase of $25 million from the previously announced $400 million [6] - The notes will bear an annual interest rate of 7.500% and are expected to close on January 31, 2025 [6] - Net proceeds from the notes will be used to redeem all outstanding 6.000% senior secured second lien notes due 2026 and pay related fees [1] - The remaining net proceeds, along with cash on hand, will fund a special one-time dividend of $1.00 per share, totaling approximately $53 million [1] Company Overview - Concrete Pumping Holdings is a leading provider of concrete pumping and waste management services in the U.S. and U.K. markets [2] - The company operates under established national brands: Brundage-Bone Concrete Pumping in the U.S., Camfaud Group in the U.K., and Eco-Pan for waste management in both regions [2] - As of October 31, 2024, the company has approximately 90 locations across 22 U.S. states, 35 locations in the U.K., and 20 waste management locations in the U.S. with one shared location in the U.K. [2] Regulatory and Offering Details - The notes have not been registered under the Securities Act of 1933 and may only be offered to qualified institutional buyers in the U.S. under Rule 144A or to non-U.S. persons under Regulation S [7] - The press release does not constitute an offer to sell or a solicitation of an offer to buy the notes, and any offer will be made only through a private offering memorandum [3]

Stock Performance - Concrete Pumping (BBCP) shares increased by 6.1% to $7.85 in the last trading session, driven by higher-than-average trading volume [1] - The stock has gained 1.8% over the past four weeks [1] - Waste Connections (WCN) shares rose 1.1% to $176.69 in the last trading session, but have declined 2.9% over the past month [3] Earnings and Revenue Expectations - Concrete Pumping is expected to report a quarterly loss of $0.06 per share, representing a year-over-year change of -200% [2] - Revenue for Concrete Pumping is expected to be $89.7 million, down 8.2% from the year-ago quarter [2] - Waste Connections' consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $1.21, representing a year-over-year change of +9% [4] Industry and Peer Comparison - Concrete Pumping operates in the Zacks Waste Removal Services industry [3] - Waste Connections, another company in the same industry, currently has a Zacks Rank of 3 (Hold) [4] Market Sentiment and Trends - Concrete Pumping's stock performance is benefiting from the company's innovative network intelligence and security solutions, which are driving demand as businesses prioritize cybersecurity and efficient data management [1] - The consensus EPS estimate for Concrete Pumping has remained unchanged over the last 30 days, and the stock's price movement may be influenced by trends in earnings estimate revisions [3]

Core Insights - The article emphasizes the importance of a proven ranking system that focuses on earnings estimates and revisions to identify winning stocks [1] - Value investing is highlighted as a popular strategy for finding great stocks across various market conditions [2] - The Style Scores system is introduced, particularly the "Value" category, which helps investors identify stocks with strong value characteristics [3] Company Analysis: Concrete Pumping Holdings (BBCP) - Concrete Pumping Holdings (BBCP) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong investment potential [4] - BBCP's Forward P/E ratio is 18.79, significantly lower than the industry's average of 25.61, suggesting it may be undervalued [4] - The stock's Forward P/E has fluctuated between 9.07 and 22.24 over the past year, with a median of 14.54 [4] - The P/S ratio for BBCP is 0.93, compared to the industry's average of 2.41, further indicating potential undervaluation [5] - BBCP's P/CF ratio stands at 4.63, well below the industry's average of 14.45, reinforcing its attractiveness as a value stock [6] - The P/CF ratio has ranged from 3.68 to 5.47 over the past year, with a median of 4.61 [6] - Overall, the financial metrics suggest that BBCP is likely undervalued, supported by a strong earnings outlook [7]

Core Points - Concrete Pumping Holdings, Inc. announced a private placement offering of $400 million in senior secured second lien notes due 2032 [1] - The proceeds from the notes will be used to redeem existing 6.000% senior secured second lien notes due 2026, cover related fees, and for general corporate purposes [1] Company Overview - Concrete Pumping Holdings is a leading provider of concrete pumping and waste management services in the U.S. and U.K., operating under established national brands [3] - The company operates a large fleet of specialized pumping equipment and trained operators, facilitating labor cost savings, shorter placement times, enhanced safety, and improved construction quality [3] - As of October 31, 2024, the company provided services from approximately 90 locations across 22 states in the U.S., 35 locations in the U.K., and 20 locations for waste management in the U.S. and one in the U.K. [3]

Revenue Performance - Total revenue for the twelve months ended October 31, 2024, was $425.9 million, a decrease of 3.7% from $442.2 million in 2023[150]. - Revenue from the U.S. Concrete Pumping segment decreased by 8.4%, or $26.9 million, from $317.9 million in 2023 to $291.0 million in 2024[151]. - Revenue from the U.K. Operations segment increased by 2.2%, or $1.4 million, from $62.6 million in 2023 to $64.0 million in 2024[152]. - Revenue from U.S. Concrete Waste Management Services increased by 14.8%, or $9.1 million, from $61.8 million in 2023 to $70.9 million in 2024[153]. - The company's revenue for the year ended October 31, 2024, was $425.9 million, primarily from concrete pumping services[228]. - Revenue for the year ended October 31, 2024, was $425,872,000, a decrease of 3.1% from $442,241,000 in 2023[235]. - Service revenue decreased to $391,346,000 in 2024 from $411,247,000 in 2023, reflecting a decline of 4.8%[276]. Profitability Metrics - Gross profit for the year ended October 31, 2024, was $165.8 million, a decrease of 7.0% from $178.3 million in 2023[155]. - Gross margin decreased to 38.9% in 2024 from 40.3% in 2023, primarily due to decreased labor efficiencies and inflationary increases in insurance costs[155]. - Total net income for the company was $16.2 million for the fiscal year ended October 31, 2024, compared to $31.8 million in the previous year, reflecting a decrease of 10.0%[162]. - Net income for 2024 was $16,207,000, a decline of 49.1% compared to $31,790,000 in 2023[235]. - Adjusted EBITDA for the twelve months ended October 31, 2024, was $112.1 million, compared to $124.6 million in the previous year[192]. Expenses and Financial Costs - General and administrative expenses for 2024 were $116.5 million, a slight decrease from $116.9 million in 2023, with G&A as a percentage of revenue increasing to 27.4%[156]. - Interest expense for the year ended October 31, 2024, was $25.6 million, down $2.5 million from $28.1 million in 2023, attributed to a reduction in debt[158]. - The company incurred interest expense of $25,880,000 in 2024, a decrease from $28,131,000 in 2023[235]. Taxation - The effective tax rate increased from 21.6% in 2023 to 33.3% in 2024, driven by higher excess tax deficiencies and changes in UK corporate tax rates[160]. Cash Flow and Liquidity - As of October 31, 2024, the company had $43.0 million in cash and cash equivalents and $335.0 million available under the ABL Facility, totaling $378.0 million in liquidity[166]. - Net cash provided by operating activities for the twelve months ended October 31, 2024, was $86.9 million, down from $96.9 million in the previous year[181][182]. - Cash used in financing activities was $28.8 million for the twelve months ended October 31, 2024, which included $18.9 million in net payments under the ABL Facility[186]. - The company utilized $32.1 million for investing activities during the twelve months ended October 31, 2024, primarily for the purchase of property, plant, and equipment[183]. Segment Performance - For the fiscal year ended October 31, 2024, the U.S. Concrete Pumping segment reported a net loss of $2.3 million, a decrease from a net income of $6.4 million in the previous year, with Adjusted EBITDA down 18.0% to $67.4 million from $82.1 million[162]. - The U.K. Operations segment maintained a net income of $4.2 million for the fiscal year ended October 31, 2024, with Adjusted EBITDA increasing by 8.9% to $16.8 million from $15.4 million[163]. - The U.S. Concrete Waste Management Services segment's net income was $14.2 million for the fiscal year ended October 31, 2024, slightly down from $14.3 million, while Adjusted EBITDA rose 3.5% to $28.0 million from $27.1 million[164]. Capital Expenditures and Investments - The company’s gross capital expenditures for the fiscal years ended October 31, 2024, and 2023 were approximately $43.8 million and $54.5 million, respectively[172]. - The company plans to allocate capital for opportunistic M&A utilizing cash on the balance sheet and the revolving line of credit as part of its growth strategy[140]. Debt and Financing - The ABL Facility was amended on September 6, 2024, increasing maximum revolver borrowings from $225.0 million to $350.0 million and extending its maturity to September 6, 2029[177]. - As of October 31, 2024, the outstanding balance under the ABL Facility was approximately $20,000, with $335.0 million of available borrowing capacity[178]. - The company believes existing cash, cash flow from operations, and borrowing capacity will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[168]. Asset Management - Total current assets increased to $112,360,000 in 2024 from $94,270,000 in 2023, primarily driven by cash and cash equivalents rising to $43,041,000[233]. - Total liabilities decreased to $551,275,000 in 2024 from $571,285,000 in 2023, with total current liabilities significantly reduced from $83,976,000 to $56,331,000[233]. - Cash and cash equivalents at the end of the period increased to $43,041,000 from $15,861,000, marking a 171.5% increase[242]. Goodwill and Impairment - The company performed its annual impairment analysis on August 31, determining that goodwill and long-lived intangible assets were not impaired for fiscal 2024 and 2023[203]. - The U.S. Concrete Pumping segment recorded accumulated impairment losses of $38.5 million as of October 31, 2024[332]. - Goodwill balance as of October 31, 2024, is $222.996 million, reflecting an increase from $221.517 million in 2023, with accumulated impairment losses remaining at $52.9 million[332]. Lease Obligations - Operating lease expense for the year ended October 31, 2024, was $7.324 million, an increase from $6.522 million in 2023[334]. - Total lease payments for operating leases are projected to be $34.638 million over the next five years, with a long-term portion of $21.716 million as of October 31, 2024[336]. - The weighted average remaining lease term for operating leases is 7.6 years, while finance leases have a term of 2 years[335].

Financial Data and Key Metrics - The company will reference non-GAAP financial measures including adjusted EBITDA, net debt, and free cash flow, which are considered useful for investors [4] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific information on company strategy or industry competition was provided in the content Management Commentary on Operating Environment and Future Outlook - The company will make forward-looking statements regarding its business and outlook, which are subject to risks and uncertainties that could cause actual results to differ materially [3] Other Important Information - The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise [3] Summary of Q&A Session - No Q&A session content was provided in the content

Business Overview - Concrete Pumping Holdings (CPH) reported revenue of $426 million and Adjusted EBITDA of $112 million for FY'24, with a 26% margin[8] - The company generated $72 million in Free Cash Flow in FY'24 and is a market leader in every region it serves[8] - CPH estimates the total US market opportunity for Eco-Pan is over $850 million, with current penetration at approximately 8% representing $71 million of FY'24 revenue[31] Market Position and Growth Strategy - CPH is the largest concrete pumping service provider in the US and UK [13, 26] - The company's US concrete pumping market share is 17%, approximately 6x larger than the next nearest competitor [25] - CPH is pursuing a growth strategy that includes capturing greater market share, optimizing pricing and utilization, expanding Eco-Pan services, pursuing acquisitions, and exploring greenfield opportunities [28] Financial Outlook and Valuation - CPH projects FY 2025 revenue between $425 million and $445 million and Adjusted EBITDA between $115 million and $125 million [74] - The company anticipates at least $65 million in Free Cash Flow for FY 2025, implying an 18% yield to its current equity value of $371 million [74, 75] - CPH's enterprise value is $703 million, with net debt of $332 million [93] - CPH's EV/TTM Adjusted EBITDA is 63x, representing a 49% and 62% discount to specialty rental and waste peers, respectively [90]

Earnings Performance - Concrete Pumping reported quarterly earnings of $0 16 per share, beating the Zacks Consensus Estimate of $0 14 per share, representing a 14 29% earnings surprise [1] - The company posted revenues of $111 48 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 1 26%, compared to year-ago revenues of $120 2 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates once and revenue estimates once [2] Stock Performance and Market Comparison - Concrete Pumping shares have lost about 0 3% since the beginning of the year, underperforming the S&P 500's gain of 0 5% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate is -$0 06 on $89 7 million in revenues for the coming quarter and $0 31 on $428 2 million in revenues for the current fiscal year [7] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5] - The estimate revisions trend for Concrete Pumping is mixed ahead of the earnings release [6] Industry Context - Concrete Pumping belongs to the Zacks Waste Removal Services industry, which is currently in the bottom 31% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Xylem, another company in the same industry, is expected to post quarterly earnings of $1 13 per share, representing a year-over-year change of +14 1%, with revenues expected to be $2 19 billion, up 3 3% from the year-ago quarter [9]

Revenue Performance - Revenue for Q4 FY 2024 was $111.5 million, down from $120.2 million in Q4 FY 2023, primarily due to a decline in the U.S. Concrete Pumping segment[6]. - For FY 2024, total revenue was $425.9 million, a decrease from $442.2 million in FY 2023, attributed to a slowdown in commercial construction and adverse weather events[11]. - The U.S. Concrete Pumping segment reported a revenue decline to $74.5 million in Q4 FY 2024 from $85.0 million in the prior year quarter, reflecting market challenges[16]. - U.K. operations revenue for FY 2024 increased 2% to $64.0 million, although it declined 1% when excluding foreign currency translation effects[20]. - Total revenue for the year ended October 31, 2024, was $425,872,000, down 3.7% from $442,241,000 in 2023[40]. - U.S. Concrete Pumping segment revenue decreased by 8.4% to $291,017,000 in 2024 from $317,877,000 in 2023[40]. - U.S. Concrete Waste Management Services revenue increased by 14.8% to $70,900,000 in 2024 from $61,776,000 in 2023[40]. Profitability Metrics - Adjusted EBITDA for Q4 FY 2024 was $33.7 million, compared to $35.8 million in the prior year, with an Adjusted EBITDA margin of 30.2%, up from 29.8%[10]. - Net income for FY 2024 was $14.5 million, significantly down from $30.0 million in FY 2023, with diluted earnings per share dropping from $0.54 to $0.26[14]. - Adjusted EBITDA for the year ended October 31, 2024, was $73,583,000, compared to $80,085,000 in 2023, reflecting a decrease of 8.1%[41]. - The U.S. Concrete Pumping segment's adjusted EBITDA for the year ended October 31, 2024, was $67,364,000, a decrease of 18.0% from $82,128,000 in 2023[47]. - Net income for the year ended October 31, 2024, was $16,207,000, a decrease of 49.1% from $31,790,000 in 2023[39]. - For the three months ended October 31, 2024, the total net income was $9,427,000, a decrease of 5.9% compared to $9,391,000 in the same period of 2023[43]. Cash Flow and Liquidity - The company achieved a 5% increase in free cash flow for FY 2024, totaling $65.0 million, supported by a $10.7 million reduction in equipment expenditures[4]. - Total available liquidity increased to $378.0 million at the end of Q4 FY 2024, up from $216.7 million a year ago, reflecting a strong liquidity position[15]. - Cash and cash equivalents at the end of the period increased to $43,041,000 from $15,861,000 at the beginning of the period[39]. - Net cash provided by operating activities for the year was $86,900,000, down 10.3% from $96,875,000 in 2023[39]. - Cash flows used in investing activities totaled $32,131,000, a decrease from $44,158,000 in 2023[39]. - The company reported a net cash decrease in financing activities of $28,768,000, compared to a decrease of $44,296,000 in 2023[39]. Operational Efficiency and Future Outlook - The company expects FY 2025 revenue to range between $425.0 million and $445.0 million, with Adjusted EBITDA projected between $115.0 million and $125.0 million[23]. - The company anticipates significant risks and uncertainties that could affect future performance, including inflationary pressures and global economic conditions[27]. - The company is focusing on managing non-recurring expenses and improving operational efficiency to enhance future performance[50]. - The company’s accumulated deficit improved to $(38.240) million as of October 31, 2024, from $(54.447) million as of October 31, 2023[37]. Segment Performance - U.S. Concrete Waste Management Services revenue grew 11% in Q4 FY 2024 to $19.8 million, driven by organic volume growth and pricing improvements[21]. - The U.K. Operations segment revenue increased slightly by 2.2% to $63,955,000 in 2024 from $62,588,000 in 2023[40]. - U.S. Concrete Waste Management Services reported an adjusted EBITDA of $28,020,000 for the year ended October 31, 2024, up 3.5% from $27,082,000 in 2023[48]. Debt and Liabilities - Total liabilities decreased to $551.275 million as of October 31, 2024, from $571.285 million as of October 31, 2023[37]. - The company’s net debt decreased to $331,979,000 as of October 31, 2024, down from $378,093,000 in October 2023[49]. - The leverage ratio, defined as net debt to Adjusted EBITDA, is used to measure the company's ability to service its debt[32].