Southland (SLND) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $173,320, a decrease of 44.6$312,472 for the same period in 2023[11] - Gross loss for the three months ended September 30, 2024, was $(51,105), compared to a gross profit of$29,529 for the same period in 2023[11] - Operating loss for the three months ended September 30, 2024, was $(68,597), compared to an operating income of$14,282 for the same period in 2023[11] - Net loss attributable to Southland Stockholders for the three months ended September 30, 2024, was $(54,727), compared to a net income of$3,800 for the same period in 2023[11] - Comprehensive loss attributable to Southland Stockholders for the three months ended September 30, 2024, was $(54,581), compared to a comprehensive income of$2,173 for the same period in 2023[13] - The company reported a net loss of $(58,129) for the three months ended September 30, 2024, compared to a net income of$4,791 for the same period in 2023[12] - For the nine months ended September 30, 2024, the net loss was $102,959,000 compared to a net loss of$11,376,000 for the same period in 2023[20] - Revenue for the nine months ended September 30, 2024, was $712.9 million, a decrease of$131.3 million, or 15.6%, compared to the same period in 2023[155] - Gross loss for the nine months ended September 30, 2024, was $70.7 million, an increase of$85.4 million, or 581.7%, compared to the same period in 2023[157] - The basic and diluted net loss per share for the three months ended September 30, 2024, was $(1.14), compared to$0.08 for the same period in 2023[129] Cash Flow and Liquidity - Cash flows from operating activities provided $12,242,000 in the nine months ended September 30, 2024, a significant improvement from cash used of$36,588,000 in the prior year[20] - The company’s cash and cash equivalents at the end of the period totaled $106,748,000, an increase from$46,752,000 at the end of September 30, 2023[20] - Cash provided by financing activities was $28,437,000 for the nine months ended September 30, 2024, compared to$11,730,000 in the same period of 2023[20] - The company had a net change in cash, cash equivalents, and restricted cash of $42.9 million for the nine months ended September 30, 2024, compared to a decrease of$25.2 million in the same period of 2023[193] - The company expects to maintain liquidity of at least $20.0 million at all times as per the Credit Agreement[204] Debt and Interest - Total equity as of September 30, 2024, was$158,034, a decrease from $260,564 as of December 31, 2023[15] - Interest expense for the three months ended September 30, 2024, was$(7,520), compared to $(6,231) for the same period in 2023[11] - Interest expense for the nine months ended September 30, 2024, was$19.9 million, an increase of $6.1 million, or 44.3$275.2 million, an increase from $251.9 million as of December 31, 2023[75] - The weighted average interest rate on total debt outstanding increased to 9.22$160.0 million term loan facility on September 30, 2024, which replaced the previous revolving credit facility[77] Operational Changes and Strategy - The company decided to discontinue certain types of projects in its Materials & Paving business line to focus on more profitable areas[24] - The merger with Legato Merger Corp. II was completed on February 14, 2023, with Southland LLC surviving as a wholly owned subsidiary[26] - The company continues to identify new opportunities for growth in both the Civil and Transportation segments, with a positive outlook for future infrastructure projects[136] Segment Performance - The Civil segment generated revenue of $55.8 million, accounting for 32.2$117.5 million, representing 67.8%[73] - Revenue for the Civil segment for the three months ended September 30, 2024, was $55.8 million, a decrease of$34.9 million, or 38.4%, compared to the same period in 2023[164] - Revenue for the Transportation segment for the three months ended September 30, 2024, was $117.5 million, a decrease of$104.3 million, or 47.0%, compared to the same period in 2023[168] Assets and Liabilities - As of September 30, 2024, the company had $20.2 million in accrued loss provisions, up from$17.3 million as of December 31, 2023[64] - As of September 30, 2024, contract assets totaled $456.2 million, down from$554.2 million as of December 31, 2023, representing a decrease of 17.7%[109] - The net contract position as of September 30, 2024, was $212.7 million, down from$360.9 million as of December 31, 2023, indicating a reduction of 41.0%[111] - The company recorded claims assets of $253.0 million as of September 30, 2024, compared to$306.4 million as of December 31, 2023, a decrease of 17.5%[113] Future Outlook - The company plans to adopt ASU 2023-05 in the first quarter of 2025, which is expected to have no material impact on consolidated financial statements[43] - The company anticipates that future operating results and available cash will be adequate to meet liquidity needs for at least the next twelve months[190]