Southland (US:SLND)2024-08-12 23:00Financial Performance - Revenue for Q2 2024 was $251.5 million, a decrease of $5.4 million, or 2.1%, compared to Q2 2023 revenue of $256.9 million[1][6] - Gross loss for Q2 2024 was $40.0 million, an increase of $6.2 million, or 18.4%, compared to a gross loss of $33.8 million in Q2 2023[1][6] - Net loss attributable to stockholders for Q2 2024 was $46.1 million, or $(0.96) per share, compared to a net loss of $12.8 million, or $(0.27) per share in Q2 2023[1][2] - Adjusted EBITDA for Q2 2024 was $(49.9) million, compared to $(42.2) million in Q2 2023[2] - Net loss attributable to Southland Stockholders for the three months ended June 30, 2024, was $(46,077) thousand, compared to $(12,826) thousand for the same period in 2023, representing a significant increase in losses[14] - Adjusted EBITDA for the six months ended June 30, 2024, was $(38,973) thousand, compared to $(29,424) thousand for the same period in 2023, indicating a worsening operational performance[14] - Net loss for the six months ended June 30, 2024, was $44,830,000, compared to a net loss of $16,167,000 for the same period in 2023[1] Operational Efficiency - Positive cash flow from operations for Q2 2024 was $27.4 million, reflecting improved operational efficiency[2][4] - Cash provided by operating activities was $17,534,000, a significant improvement from cash used in operating activities of $(10,636,000) in the prior year[1] Backlog and Awards - New awards totaled $374.8 million in Q2 2024, contributing to a backlog of $2.74 billion, up from $2.64 billion as of March 31, 2024[2] - The balance of backlog as of June 30, 2024, was $2,743,749 thousand, down from $2,834,966 thousand at the end of 2023, suggesting a decrease in future revenue visibility[15] - The company recognized contract revenue of $(566,872) thousand in 2024, which reduced the backlog balance[15] Assets and Liabilities - Total assets as of June 30, 2024, increased to $1,263,407 thousand from $1,201,068 thousand as of December 31, 2023, reflecting growth in the company's asset base[17] - Current liabilities rose to $770,242 thousand as of June 30, 2024, compared to $583,967 thousand at the end of 2023, indicating increased short-term financial obligations[17] - Total liabilities increased to $1,047,857 thousand as of June 30, 2024, from $940,504 thousand at the end of 2023, indicating a rise in the company's debt levels[17] Cash and Liquidity - Cash and cash equivalents increased to $52,352 thousand as of June 30, 2024, from $49,176 thousand at the end of 2023, indicating improved liquidity[17] - Total cash and cash equivalents at the end of the period increased to $69,169,000 from $54,108,000 year-over-year[1] - Cash paid for income taxes was $203,000, down from $2,903,000 in the previous year[1] - Cash paid for interest increased to $11,970,000 from $7,541,000 year-over-year[1] - Net cash provided by investing activities was $2,982,000, compared to $2,240,000 in the same period last year[1] - Borrowings on notes payable increased significantly to $24,678,000 from $248,000 in the previous year[1] Segment Performance - The Civil segment generated $79.4 million in revenue for Q2 2024, representing 31.6% of total revenue, while the Transportation segment accounted for $172.1 million, or 68.4%[11] - The Materials & Paving business negatively impacted gross loss by $46.8 million in Q2 2024[6][8] Future Outlook - The company expects to collect approximately $58 million from settled contract disputes in Q3 2024, which will enhance liquidity[3][4] - The company plans to host a conference call on August 13, 2024, to discuss financial results and future outlook[22] Company Overview - Southland is a leading provider of specialized infrastructure construction services, with a focus on various sectors including transportation and water treatment[23]