Core Insights - Concrete Pumping Holdings, Inc. reported financial results for Q4 and fiscal year 2024, highlighting challenges in the U.S. Concrete Pumping segment due to high interest rates and increased commercial building vacancy rates, while the Concrete Waste Management business showed strong growth [4][5][12]. Financial Performance Summary - Q4 2024 revenue was $111.5 million, down from $120.2 million in Q4 2023, primarily due to a decline in the U.S. Concrete Pumping segment [5][6]. - Fiscal year 2024 revenue totaled $425.9 million, a decrease from $442.2 million in fiscal year 2023, attributed to a slowdown in commercial construction and adverse weather events [12][15]. - Gross profit for Q4 2024 was $46.2 million, compared to $48.9 million in Q4 2023, with a gross margin improvement to 41.5% from 40.7% [6][8]. - For fiscal year 2024, gross profit was $165.8 million, down from $178.3 million in fiscal year 2023, with a gross margin of 38.9% compared to 40.3% [13][15]. Segment Performance - U.S. Concrete Pumping revenue in Q4 2024 was $74.5 million, down 12.3% from $85.0 million in Q4 2023, with net income decreasing to $2.0 million from $2.6 million [17][18]. - U.K. Operations revenue in Q4 2024 was $17.1 million, slightly down from $17.4 million in the prior year, with adjusted EBITDA increasing by 18% to $5.2 million [20]. - U.S. Concrete Waste Management Services revenue increased by 11% in Q4 2024 to $19.8 million, driven by organic growth and pricing improvements [22][23]. Management Commentary - The CEO noted that despite challenges in the U.S. pumping market, disciplined fleet management improved adjusted EBITDA margins and free cash flow, which increased by 5% year-over-year [4][6]. - The company anticipates continued positive momentum in the Concrete Waste Management segment and is positioned for market recovery in fiscal 2025 [4][24]. Liquidity and Debt Management - As of October 31, 2024, the company had total available liquidity of $378.0 million, up from $216.7 million a year ago, and net debt reduced to $332.0 million [16][54]. - The leverage ratio at the end of Q4 2024 was 3.0x, indicating a stable financial position despite revenue declines [6][16]. Fiscal Year 2025 Outlook - The company expects fiscal year 2025 revenue to range between $425.0 million and $445.0 million, with adjusted EBITDA projected between $115.0 million and $125.0 million [24].

Core Insights - Concrete Pumping Holdings, Inc. reported a decline in revenue and adjusted EBITDA for the fourth quarter and fiscal year 2024, primarily due to a slowdown in the U.S. Concrete Pumping segment driven by high interest rates and increased commercial building vacancy rates [3][4][11]. Financial Performance Summary - Fourth quarter revenue was $111.5 million, down from $120.2 million in the same quarter of fiscal year 2023, reflecting a decrease of 7.3% [4][10]. - Fiscal year 2024 revenue totaled $425.9 million, compared to $442.2 million in fiscal year 2023, marking a decline of 3.7% [11][10]. - Adjusted EBITDA for the fourth quarter was $33.7 million, down from $35.8 million year-over-year, with an adjusted EBITDA margin of 30.2% compared to 29.8% [8][10]. - For fiscal year 2024, adjusted EBITDA was $112.1 million, down from $124.6 million in the previous year, with a margin of 26.3% compared to 28.2% [14][10]. Segment Performance - U.S. Concrete Pumping segment revenue in Q4 2024 was $74.5 million, a decrease of 12.3% from $85.0 million in Q4 2023 [16][41]. - U.K. Operations reported Q4 revenue of $17.1 million, slightly down from $17.4 million year-over-year [18][41]. - U.S. Concrete Waste Management Services saw a revenue increase of 11.2% in Q4 2024, reaching $19.8 million compared to $17.8 million in the prior year [20][41]. Cost Management and Profitability - Gross profit for Q4 2024 was $46.2 million, down from $48.9 million in Q4 2023, but gross margin improved to 41.5% from 40.7% due to effective cost control measures [5][10]. - General and administrative expenses decreased by 9% to $27.0 million in Q4 2024 compared to $29.6 million in the prior year [6][10]. - Net income for Q4 2024 was $9.4 million, unchanged from the same quarter in fiscal year 2023, with diluted earnings per share remaining at $0.16 [7][10]. Liquidity and Debt Management - As of October 31, 2024, the company had total available liquidity of $378.0 million, up from $216.7 million a year ago, and net debt reduced to $332.0 million [15][10]. - The leverage ratio at the end of Q4 2024 was 3.0x [10]. Outlook for Fiscal Year 2025 - The company anticipates fiscal year 2025 revenue to range between $425.0 million to $445.0 million, with adjusted EBITDA expected to be between $115.0 million to $125.0 million [23][10].

Core Viewpoint - Concrete Pumping Holdings, Inc. (CPH) will hold a conference call on January 9, 2025, to discuss its financial results for the fourth quarter and fiscal year ended October 31, 2024 [3][4]. Company Overview - CPH 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 in the U.S., Camfaud in the U.K., and Eco-Pan for waste management [5]. - The company operates approximately 100 branch locations across 21 states in the U.S. and around 30 branch locations in the U.K. for concrete pumping services, along with 20 operating locations for route-based concrete waste management in the U.S. and 1 shared location in the U.K. [5]. Conference Call Details - The conference call will be hosted by CEO Bruce Young and CFO Iain Humphries, followed by a Q&A session [4]. - The call is scheduled for 5:00 p.m. Eastern Time, with dial-in numbers provided for both toll-free and international participants [4]. - A live broadcast of the conference call will be available, along with a replay option from January 9, 2025, after 8:00 p.m. Eastern Time until January 16, 2025 [5].

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $109.6 million, down from $120.7 million in Q3 2023, primarily due to a decline in the U.S. Concrete Pumping segment [14][16] - U.S. Concrete Pumping segment revenue decreased 14% to $75.2 million compared to $87.3 million in the prior year quarter, attributed to lower volumes from a slowdown in commercial construction [14][15] - Adjusted EBITDA decreased to $31.6 million from $34.9 million year-over-year, but the adjusted EBITDA margin remained consistent at approximately 29% [17][21] Business Line Data and Key Metrics Changes - U.S. Concrete Waste Management Services revenue increased 15% to $18.5 million compared to $16.1 million in the prior year quarter, driven by organic growth and pricing improvements [15][17] - U.K. operations revenue decreased 8% to $15.9 million, with infrastructure work showing resilience despite a slowdown in other commercial projects [15][11] Market Data and Key Metrics Changes - The commercial market experienced softness, particularly in light commercial and manufacturing projects, due to prolonged high interest rates [8][12] - Residential market held steady, with approximately 31% of total revenue coming from residential concrete pumping work [9][10] - Infrastructure markets grew year-over-year by 5%, driven by resilience in U.K. projects and expanding U.S. national footprint [11][12] Company Strategy and Development Direction - The company aims to navigate through macroeconomic cycles and believes its strategic growth plan will drive superior shareholder value [12] - Focus on maintaining market share while managing costs effectively, with an emphasis on operational flexibility and equipment utilization [23][41] - Plans to complement organic growth with opportunistic M&A while strategically reducing leverage [23][21] Management's Comments on Operating Environment and Future Outlook - Management noted that historic rainfall and restrictive monetary policy negatively impacted construction volumes, but these conditions are expected to be temporary [6][7] - The company anticipates continued growth in the Concrete Waste Management business and infrastructure projects, despite current market challenges [7][12] - Future demand is expected to improve as interest rates potentially decrease, with a cautious outlook for the first half of 2025 [22][29] Other Important Information - The company repurchased approximately 370,000 shares for $2.5 million during Q3 2024, demonstrating commitment to long-term shareholder value [20][19] - Full-year guidance was adjusted to revenue between $420 million and $430 million, with adjusted EBITDA expected between $108 million and $113 million [21] Q&A Session Summary Question: Current market conditions and actions taken - Management confirmed they are not deferring maintenance on assets and are managing costs effectively through better purchasing and labor management [26] Question: Outlook for 2025 - Management expects the first half of 2025 to be similar to current conditions, with potential improvement in the second half [29] Question: Impact of potential rate cuts - Management noted that while there are early signs of improvement in the non-residential construction market, concrete stage activity is expected to pick up in the second half of next year [32][33] Question: Utilization rates - Current utilization rates are around 70%, with a goal of reaching 80% as market conditions improve [36] Question: Equipment oversaturation and pricing pressure - Management acknowledged oversaturation in the market due to increased equipment availability, but they have managed to maintain pricing [41] Question: Growth sustainability in Eco-Pan - The Eco-Pan segment has shown strong growth even in a softer environment, demonstrating its efficiency compared to traditional methods [46]

Core Viewpoint - Concrete Pumping (BBCP) reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.18 per share, and showing a decline from $0.17 per share a year ago, indicating a negative earnings surprise of -27.78% [1] Financial Performance - The company posted revenues of $109.62 million for the quarter ended July 2024, missing the Zacks Consensus Estimate by 13.07%, and down from $120.67 million year-over-year [1] - Over the last four quarters, Concrete Pumping has not surpassed consensus EPS estimates and has topped revenue estimates only once [1] Stock Performance - Concrete Pumping shares have declined approximately 25% since the beginning of the year, contrasting with the S&P 500's gain of 15.9% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $128.2 million, and for the current fiscal year, it is $0.35 on revenues of $459.1 million [4] - The estimate revisions trend for Concrete Pumping is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [4] Industry Context - The Waste Removal Services industry, to which Concrete Pumping belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show decreased revenue and net income, with a notable $3.5 million loss from a sales tax ruling [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | As of July 31, 2024 | As of October 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$890,790** | **$904,525** | | Total current assets | $102,472 | $94,270 | | Property, plant and equipment, net | $423,486 | $427,648 | | Goodwill | $222,964 | $221,517 | | **Total Liabilities** | **$551,114** | **$571,285** | | Total current liabilities | $66,610 | $83,976 | | Long term debt, net | $372,912 | $371,868 | | **Total Stockholders' Equity** | **$314,676** | **$308,240** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share amounts) | Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Nine Months Ended July 31, 2024 | Nine Months Ended July 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$109,617** | **$120,671** | **$314,390** | **$322,037** | | Gross Profit | $44,505 | $49,484 | $119,586 | $129,412 | | Income from Operations | $16,625 | $19,547 | $30,136 | $42,176 | | **Net Income** | **$7,560** | **$10,336** | **$6,780** | **$22,399** | | **Diluted EPS** | **$0.13** | **$0.18** | **$0.10** | **$0.38** | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive Income Summary (in thousands) | Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Nine Months Ended July 31, 2024 | Nine Months Ended July 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $7,560 | $10,336 | $6,780 | $22,399 | | Foreign currency translation adjustment | $2,315 | $1,835 | $4,874 | $8,565 | | **Total Comprehensive Income** | **$9,875** | **$12,171** | **$11,654** | **$30,964** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) - For the nine months ended July 31, 2024, **total stockholders' equity increased to $314.7 million**, driven by net income and foreign currency adjustments[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Nine Months Ended July 31, in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $64,474 | $66,232 | | Net cash used in investing activities | ($30,012) | ($35,923) | | Net cash used in financing activities | ($24,772) | ($26,744) | | **Net increase in cash and cash equivalents** | **$10,472** | **$4,050** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - The company operates through three main subsidiaries: Brundage-Bone (U.S.), Camfaud (U.K.), and Eco-Pan (U.S. and U.K.)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - The adoption of the CECL accounting standard on November 1, 2023, **did not have a material impact** on the financial statements[43](index=43&type=chunk) - As of July 31, 2024, the company had **$375.0 million in Senior Notes** and no outstanding balance on its $225.0 million ABL Facility[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - A **loss of $3.5 million** was recorded in Q1 2024 due to an unfavorable court judgment on a Washington State sales tax issue[87](index=87&type=chunk) - In March 2024, the board approved a **$15.0 million increase** to the company's share repurchase program[89](index=89&type=chunk) Segment Revenue (Nine Months Ended July 31, in thousands) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | U.S. Concrete Pumping | $216,514 | $232,896 | | U.K. Operations | $46,813 | $45,207 | | U.S. Concrete Waste Management Services | $51,063 | $43,934 | | **Total Revenue** | **$314,390** | **$322,037** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue declined due to a commercial construction slowdown, partially offset by growth in waste management services [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q3 2024 vs Q3 2023 Revenue by Segment (in thousands) | Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | U.S. Concrete Pumping | $75,213 | $87,323 | ($12,110) | (13.9)% | | U.K. Operations | $15,859 | $17,260 | ($1,401) | (8.1)% | | U.S. Concrete Waste Management | $18,545 | $16,088 | $2,457 | 15.3% | | **Total Revenue** | **$109,617** | **$120,671** | **($11,054)** | **(9.2)%** | - The **13.9% revenue decrease** in U.S. Concrete Pumping for Q3 2024 was driven by a slowdown in commercial construction and adverse weather[120](index=120&type=chunk) - Gross margin for Q3 2024 was **40.6%**, a slight decrease from 41.0% in Q3 2023, due to lower revenue offset by cost improvements[122](index=122&type=chunk) - For the nine months ended July 31, 2024, G&A expenses increased by $2.3 million, largely due to a **non-recurring charge of $3.5 million**[136](index=136&type=chunk) [Adjusted EBITDA and Net Income/(Loss)](index=32&type=section&id=Adjusted%20EBITDA%20and%20Net%20Income/(Loss)) Adjusted EBITDA by Segment (in thousands) | Segment | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | U.S. Concrete Pumping | $20,100 | $22,671 | $48,029 | $58,771 | | U.K. Operations | $4,228 | $4,792 | $11,567 | $11,027 | | U.S. Concrete Waste Management | $7,310 | $7,453 | $18,871 | $18,997 | | **Total Adjusted EBITDA** | **$31,638** | **$34,916** | **$78,467** | **$88,795** | - Adjusted EBITDA for the U.S. Concrete Pumping segment **decreased by 18.3%** year-to-date due to lower revenue and cost pressures[145](index=145&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) - As of July 31, 2024, the company had **total available liquidity of $236.3 million**, including cash and ABL Facility capacity[152](index=152&type=chunk) - Capital expenditures for the nine months ended July 31, 2024, were **$37.5 million**, a decrease from $43.2 million in the prior year[156](index=156&type=chunk)[169](index=169&type=chunk) - Net cash from operating activities was **$64.5 million** for the nine months ended July 31, 2024, a slight decrease from the prior-year period[166](index=166&type=chunk)[167](index=167&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as per the report - Not applicable[177](index=177&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of July 31, 2024[179](index=179&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter ended July 31, 2024[180](index=180&type=chunk) [Part II. Other Information](index=41&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company recorded a $3.5 million loss for a sales tax issue, with other litigation not expected to be material - Information on legal proceedings is detailed in Note 13, covering the **Washington State sales tax issue** and other ordinary litigation[182](index=182&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report - There have been **no material changes** to the Risk Factors previously disclosed in the company's Annual Report[183](index=183&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 370,419 shares for $2.5 million in Q3 2024, with $19.5 million remaining under the program Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased | Average Price Paid | Dollar Value Remaining Under Program | | :--- | :--- | :--- | :--- | | May 2024 | 124,425 | $6.91 | $21,050,680 | | June 2024 | 111,971 | $6.64 | $20,307,317 | | July 2024 | 134,023 | $6.40 | $19,450,057 | | **Total** | **370,419** | **$6.64** | **$19,450,057** | [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[188](index=188&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not Applicable[188](index=188&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) The CEO adopted and subsequently terminated a Rule 10b5-1 Trading Plan during the first half of 2024 - The Company's CEO, Bruce Young, **terminated his Rule 10b5-1 Trading Plan** on May 14, 2024, and exercised all outstanding options[189](index=189&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists required CEO/CFO certifications and Inline XBRL documents filed as exhibits with the Form 10-Q - The report lists required certifications (31.1, 31.2, 32.1, 32.2) and **Inline XBRL data files** as exhibits[191](index=191&type=chunk)

Revenue Performance - Revenue for Q3 FY 2024 was $109.6 million, down 9.2% from $120.7 million in Q3 FY 2023[1] - U.S. Concrete Pumping revenue fell to $75.2 million, down 13.8% from $87.3 million in the prior year quarter[7] - U.K. Operations revenue decreased to $15.9 million, a 8.1% decline from $17.3 million in the prior year quarter[8] - U.S. Concrete Waste Management Services revenue increased by 15% to $18.5 million compared to $16.1 million in the prior year[9] - Total reportable segment revenue decreased by 9.2% to $109,617,000 from $120,671,000[27] - For the nine months ended July 2024, U.S. Concrete Pumping revenue decreased by 7.0% to $216,514,000 from $232,896,000[28] - U.S. Concrete Waste Management Services - Third parties revenue increased by 16.2% to $51,063,000 from $43,934,000 for the same period[28] - Total revenue for Q1 2024 was $98 million, a decrease of 18.3% compared to Q1 2023 revenue of $120 million[34] - The company experienced a total revenue decline of 11.6% year-over-year, from $88.8 million in 2023 to $78.5 million in 2024[34] Profitability Metrics - Gross profit decreased to $44.5 million, resulting in a gross margin of 40.6%, compared to 41.0% in the prior year[3] - Net income attributable to common shareholders was $7.1 million, or $0.13 per diluted share, down from $9.9 million, or $0.18 per diluted share[4] - Adjusted EBITDA for Q3 FY 2024 was $31.6 million, a decrease of 9.5% from $34.9 million in the prior year, with an Adjusted EBITDA margin of 28.8%[5] - Net income for the three months ended July 31, 2024, was $7,560, down from $10,336 in the same period of 2023, representing a decline of 26.8%[24] - Total Adjusted EBITDA for the nine months ended July 2024 was $31,638,000, down from $34,916,000[33] - U.S. Concrete Waste Management Services reported adjusted EBITDA of $18.9 million for the nine months ended July 31, 2024, compared to $19 million for the same period in 2023, a decrease of 0.6%[38] - Overall, the company is experiencing fluctuations in net income and adjusted EBITDA, indicating a need for strategic adjustments moving forward[40] Liquidity and Financial Position - Total available liquidity as of July 31, 2024, was $236.3 million, up from $195.5 million a year earlier[1] - Total current assets increased to $102,472 as of July 31, 2024, compared to $94,270 as of July 31, 2023, reflecting a growth of 8.5%[23] - Total liabilities decreased to $551,114 as of July 31, 2024, from $571,285 as of July 31, 2023, indicating a reduction of 3.5%[23] - Cash and cash equivalents increased to $26,333 as of July 31, 2024, compared to $15,861 as of July 31, 2023, marking a significant increase of 66.5%[23] - Net debt as of July 31, 2024, was $348.7 million, a decrease from $399.2 million on July 31, 2023[39] Future Outlook and Guidance - The company expects FY 2024 revenue to be between $420.0 million and $430.0 million, with Adjusted EBITDA projected between $108.0 million and $113.0 million[10] - The leverage ratio is expected to be approximately 3.0x by the end of FY 2024[10] - The company has not provided specific forward-looking Adjusted EBITDA guidance due to unpredictability regarding various reconciling items[20] - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the upcoming quarters[24] - The company plans to continue focusing on growth investments and market expansion strategies in the upcoming quarters[35] Operational Adjustments - The company has reclassified certain assets and revenues to better align with current performance measures[29] - Capital expenditures for Q1 2024 included approximately $5 million for growth investments[35] - Interest expense decreased from $7.348 million in Q2 2023 to $6.463 million in Q1 2024[40] - Depreciation and amortization remained relatively stable, around $14.7 million across the quarters[40] - Other adjustments included a $3.5 million non-recurring charge related to sales tax litigation in Q1 2024[40] - Transaction expenses were minimal, with only $5,000 recorded in Q3 2023[40] - Stock-based compensation decreased from $1.064 million in Q2 2023 to $536,000 in Q1 2024[40] - The change in fair value of warrant liabilities showed a loss of $1.172 million in Q2 2023[40]

Core Viewpoint - Concrete Pumping Holdings, Inc. will hold a conference call on September 4, 2024, to discuss its financial results for the third quarter ended July 31, 2024 [1][2] 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: Brundage-Bone in the U.S., Camfaud in the U.K., and Eco-Pan for waste management [3] - The company operates approximately 100 branch locations across 21 states in the U.S. and around 30 branch locations in the U.K. for concrete pumping services, along with 20 operating locations for route-based concrete waste management in the U.S. and 1 shared location in the U.K. [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 worksite safety, and improved construction quality [3] Conference Call Details - The conference call will be hosted by CEO Bruce Young and CFO Iain Humphries, followed by a Q&A session [1] - The call is scheduled for September 4, 2024, at 5:00 p.m. Eastern Time, with a toll-free dial-in number of 1-877-407-9039 and an international dial-in number of 1-201-689-8470 [1] - A replay of the conference call will be available after 8:00 p.m. Eastern Time on the same day through September 11, 2024, with a toll-free replay number of 1-844-512-2921 [2]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2024 was $107.1 million, a slight decrease from $107.8 million in the same quarter last year, primarily due to a decline in U.S. Concrete Pumping revenue [15][6] - Gross margin decreased to 39% from 40.3% year-over-year, attributed to lower revenue volumes and increased costs [16][12] - Net income available to common shareholders was $2.6 million or $0.05 per diluted share, down from $5.2 million or $0.09 per diluted share in the prior year [17] - Adjusted EBITDA decreased 4% to $27.5 million, with an adjusted EBITDA margin of 25.7%, down from 26.7% year-over-year [17][18] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping revenue decreased 5% to $74.6 million, impacted by commercial project softness and adverse weather [15][6] - U.K. operations saw a 2% revenue increase to $15.5 million, with pricing improvements offsetting lower activity volumes [16] - U.S. Concrete Waste Management Services revenue increased 19% to $16.9 million, driven by robust organic growth [15] Market Data and Key Metrics Changes - Commercial end market activity weakened, with a 5% drop in commercial revenue share, now around 55% [42] - Infrastructure revenue grew 14% year-over-year, supported by capital deployment from the Infrastructure Investment and Jobs Act [10] - Residential construction remained resilient, growing 12% year-over-year, driven by a supply-demand imbalance [9] Company Strategy and Development Direction - The company is focusing on optimizing equipment utilization and pursuing value-driven work rather than volume-based projects [24] - Plans to continue evaluating opportunistic M&A to consolidate markets and alleviate competitive pressures [38] - The company aims to maintain a free cash flow target of at least $75 million and reduce net leverage to approximately 2.75 times by the end of the fiscal year [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about a sluggish commercial market for the remainder of the year due to ongoing interest rate pressures [27] - There is optimism regarding infrastructure project momentum, with expectations for improved project funding and execution in the coming years [10][29] - The company is closely monitoring interest rate movements and their impact on project volumes [9][23] Other Important Information - The company repurchased approximately 171,000 shares for $1.3 million during Q2 2024, with a total of about 2 million shares repurchased since the program's initiation [20] - The company is experiencing persistent inflation, particularly in labor and commercial insurance costs, affecting profitability [12] Q&A Session Summary Question: Guidance on revised outlook - Management indicated that the revised outlook reflects pressures from the first half of the year and a cautious view on commercial project activity for the second half [26][27] Question: Early rollout from IIJA infrastructure investment - Management noted a mixed bag of projects, including healthcare, road and bridge work, and airport projects, with expectations for increased momentum [28][29] Question: Weather impact on revenue - Management reported a $2 million revenue loss due to unexpected weather, with utilization slightly down compared to the prior year [31][32] Question: Growth in Concrete Waste Management - Growth is attributed to expansion into new adjacent markets and increased penetration in existing markets, with significant runway for growth [35][36] Question: Competitive environment and M&A - Management is exploring several businesses for potential acquisition, with a focus on consolidating markets to improve rates [38] Question: Impact of slowdown in commercial projects - Management acknowledged that the slowdown in commercial projects contributed to revenue declines, but noted a shift towards infrastructure and residential markets [41][42] Question: Margins in Eco-Pan business - Margins in the Concrete Waste Management business decreased but remain compelling, with ongoing investment encouraged [43][44] Question: Oversaturation of concrete pumps - Management indicated that oversaturation is a nationwide issue in the U.S., with plans to manage utilization and reduce CapEx [46][47] Question: Weather impact on volumes - Management confirmed that favorable weather would have kept volumes in line with expectations, and they are factoring weather into future guidance [51][52]

Company Performance - Concrete Pumping reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.09 per share a year ago, representing an earnings surprise of -28.57% [1] - The company posted revenues of $107.06 million for the quarter ended April 2024, missing the Zacks Consensus Estimate by 3.55%, and down from $107.79 million year-over-year [1] - Over the last four quarters, Concrete Pumping has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [1] Stock Performance - Concrete Pumping shares have declined approximately 8.8% since the beginning of the year, contrasting with the S&P 500's gain of 12.3% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $125.68 million, and for the current fiscal year, it is $0.40 on revenues of $462.28 million [4] - The estimate revisions trend for Concrete Pumping is mixed, and changes in estimates for the coming quarters and current fiscal year are anticipated following the recent earnings report [4] Industry Context - The Waste Removal Services industry, to which Concrete Pumping belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - Radius Recycling, another company in the same industry, is expected to report a quarterly loss of $0.87 per share, reflecting a year-over-year change of -229.9%, with revenues anticipated to be $721.6 million, down 10.9% from the previous year [5][6]