Financial Performance - Centuri reported Q2 2024 revenue of $672.1 million, a decrease of $133.7 million or 16.6% compared to Q2 2023[3]. - Net income attributable to common stock was $11.7 million, with diluted earnings per share of $0.14; adjusted net income was $17.0 million, or adjusted diluted earnings per share of $0.20[3]. - Adjusted EBITDA for Q2 2024 was $68.6 million, with an adjusted EBITDA margin of 10.2%[3]. - Full year 2024 revenue guidance is projected between $2.5 billion and $2.7 billion, with an adjusted EBITDA margin of 9.0% to 9.6%[7]. - Adjusted EBITDA for the fiscal three months ended June 30, 2024, was $68.6 million, down from $92.9 million in the same period of the prior year[28]. - Free Cash Flow for the fiscal three months ended June 30, 2024, was $48.6 million, compared to $64.4 million in the same period of the prior year[29]. - Free Cash Flow Conversion was 70.8% for the fiscal three months ended June 30, 2024, compared to 69.3% in the same period of the prior year[29]. - Adjusted Net Income for the fiscal three months ended June 30, 2024, was $16.99 million, compared to $25.02 million in the same period of the prior year[30]. - Total revenue for the fiscal three months ended June 30, 2024, was $672,075,000, a decrease of 16.5% compared to $805,779,000 for the same period in 2023[33]. - Adjusted diluted earnings per share for the fiscal three months ended June 30, 2024, was $0.20, down from $0.35 in the same period last year, representing a decline of 42.9%[31]. - Net income for the fiscal three months ended June 30, 2024, was $11,697,000, compared to $18,527,000 for the same period in 2023, a decrease of 36.8%[33]. - Gross profit for the fiscal three months ended June 30, 2024, was $60,504,000, down 32.8% from $89,972,000 in the same period last year[33]. - Operating income for the fiscal three months ended June 30, 2024, was $33,145,000, a decrease of 37.7% compared to $53,202,000 in the same period last year[33]. Segment Performance - The U.S. Gas segment revenue decreased by $51.2 million, or 13.1%, to $340.7 million compared to the prior year[8]. - The Canadian Gas segment revenue decreased by $7.1 million, or 14.8%, totaling $41.0 million, while gross profit increased to 22.8%[9]. - The Union Electric segment revenue decreased by $54.0 million, or 24.8%, to $164.2 million, primarily due to a decline in offshore wind revenue[10]. - Revenue from the Union Electric segment totaled $328.1 million, a decrease of $95.8 million, or 22.6%, compared to the prior year period[14]. - Revenue from the Non-Union Electric segment totaled $217.1 million, reflecting a decrease of $53.0 million, or 19.6%, compared to the prior year period[15]. - Gross profit as a percentage of revenue decreased to 7.1% for the Union Electric segment and 8.8% for the Non-Union Electric segment, down from 7.6% and 14.5% respectively in the prior year[14][15]. Strategic Initiatives - The company secured multi-year customer awards with an estimated revenue potential exceeding $400 million, resulting in a backlog of $4.7 billion at the end of Q2 2024[3]. - Cost reduction initiatives are expected to generate approximately $29 million in annualized savings starting in 2025[3]. - The company expects annual savings of $29 million from its review of corporate and operating company overhead[18]. - The company is well positioned to implement cost-focused initiatives while growing the business under the leadership of the incoming Interim CEO[18]. Leadership Changes - The company initiated a national search for a permanent CEO following the resignation of Bill Fehrman, with Paul Caudill appointed as Interim President and CEO[3][4]. Cash Flow and Assets - The company reported a net cash used in operating activities of $76,411,000 for the fiscal six months ended June 30, 2024, compared to $19,487,000 for the same period in 2023[37]. - Total assets as of June 30, 2024, were $2,221,620,000, an increase from $2,189,908,000 as of December 31, 2023[35]. - Current liabilities decreased to $353,534,000 as of June 30, 2024, from $420,612,000 as of December 31, 2023, a reduction of 16%[35]. - Cash and cash equivalents at the end of the period were $30,919,000, down from $33,407,000 at the beginning of the period[37]. - The company raised $330,343,000 from its initial public offering and private placement, net of offering costs paid[37].
Centuri Holdings, Inc.(CTRI) - 2024 Q2 - Quarterly Results