crete Pumping (BBCP) - 2024 Q3 - Quarterly Report

Part I. Financial Information Financial Statements Unaudited statements show decreased revenue and net income, with a notable $3.5 million loss from a sales tax ruling Condensed Consolidated Balance Sheets 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 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 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 - 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] Condensed Consolidated Statements of Cash Flows 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 - The company operates through three main subsidiaries: Brundage-Bone (U.S.), Camfaud (U.K.), and Eco-Pan (U.S. and U.K.)[28][29][30] - The adoption of the CECL accounting standard on November 1, 2023, did not have a material impact on the financial statements[43] - 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][67][68] - 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] - In March 2024, the board approved a $15.0 million increase to the company's share repurchase program[89] 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 Revenue declined due to a commercial construction slowdown, partially offset by growth in waste management services Results of Operations 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] - 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] - 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] Adjusted EBITDA and Net Income/(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] Liquidity and Capital Resources - As of July 31, 2024, the company had total available liquidity of $236.3 million, including cash and ABL Facility capacity[152] - 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][169] - 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][167] Quantitative and Qualitative Disclosures About Market Risk This section is not applicable as per the report - Not applicable[177] Controls and Procedures 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] - There were no material changes in internal control over financial reporting during the quarter ended July 31, 2024[180] Part II. Other Information Legal Proceedings 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][86][87] Risk Factors 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] Unregistered Sales of Equity Securities and Use of Proceeds 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 The company reported no defaults upon senior securities - None[188] Mine Safety Disclosures This section is not applicable to the company - Not Applicable[188] Other Information 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] Exhibits 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]