crete Pumping (US:BBCP)2025-01-10 13:30Revenue Performance - Total revenue for the twelve months ended October 31, 2024, was $425.9 million, a decrease of 3.7% from $442.2 million in 2023[150]. - Revenue from the U.S. Concrete Pumping segment decreased by 8.4%, or $26.9 million, from $317.9 million in 2023 to $291.0 million in 2024[151]. - Revenue from the U.K. Operations segment increased by 2.2%, or $1.4 million, from $62.6 million in 2023 to $64.0 million in 2024[152]. - Revenue from U.S. Concrete Waste Management Services increased by 14.8%, or $9.1 million, from $61.8 million in 2023 to $70.9 million in 2024[153]. - The company's revenue for the year ended October 31, 2024, was $425.9 million, primarily from concrete pumping services[228]. - Revenue for the year ended October 31, 2024, was $425,872,000, a decrease of 3.1% from $442,241,000 in 2023[235]. - Service revenue decreased to $391,346,000 in 2024 from $411,247,000 in 2023, reflecting a decline of 4.8%[276]. Profitability Metrics - Gross profit for the year ended October 31, 2024, was $165.8 million, a decrease of 7.0% from $178.3 million in 2023[155]. - Gross margin decreased to 38.9% in 2024 from 40.3% in 2023, primarily due to decreased labor efficiencies and inflationary increases in insurance costs[155]. - Total net income for the company was $16.2 million for the fiscal year ended October 31, 2024, compared to $31.8 million in the previous year, reflecting a decrease of 10.0%[162]. - Net income for 2024 was $16,207,000, a decline of 49.1% compared to $31,790,000 in 2023[235]. - Adjusted EBITDA for the twelve months ended October 31, 2024, was $112.1 million, compared to $124.6 million in the previous year[192]. Expenses and Financial Costs - General and administrative expenses for 2024 were $116.5 million, a slight decrease from $116.9 million in 2023, with G&A as a percentage of revenue increasing to 27.4%[156]. - Interest expense for the year ended October 31, 2024, was $25.6 million, down $2.5 million from $28.1 million in 2023, attributed to a reduction in debt[158]. - The company incurred interest expense of $25,880,000 in 2024, a decrease from $28,131,000 in 2023[235]. Taxation - The effective tax rate increased from 21.6% in 2023 to 33.3% in 2024, driven by higher excess tax deficiencies and changes in UK corporate tax rates[160]. Cash Flow and Liquidity - As of October 31, 2024, the company had $43.0 million in cash and cash equivalents and $335.0 million available under the ABL Facility, totaling $378.0 million in liquidity[166]. - Net cash provided by operating activities for the twelve months ended October 31, 2024, was $86.9 million, down from $96.9 million in the previous year[181][182]. - Cash used in financing activities was $28.8 million for the twelve months ended October 31, 2024, which included $18.9 million in net payments under the ABL Facility[186]. - The company utilized $32.1 million for investing activities during the twelve months ended October 31, 2024, primarily for the purchase of property, plant, and equipment[183]. Segment Performance - For the fiscal year ended October 31, 2024, the U.S. Concrete Pumping segment reported a net loss of $2.3 million, a decrease from a net income of $6.4 million in the previous year, with Adjusted EBITDA down 18.0% to $67.4 million from $82.1 million[162]. - The U.K. Operations segment maintained a net income of $4.2 million for the fiscal year ended October 31, 2024, with Adjusted EBITDA increasing by 8.9% to $16.8 million from $15.4 million[163]. - The U.S. Concrete Waste Management Services segment's net income was $14.2 million for the fiscal year ended October 31, 2024, slightly down from $14.3 million, while Adjusted EBITDA rose 3.5% to $28.0 million from $27.1 million[164]. Capital Expenditures and Investments - The company’s gross capital expenditures for the fiscal years ended October 31, 2024, and 2023 were approximately $43.8 million and $54.5 million, respectively[172]. - The company plans to allocate capital for opportunistic M&A utilizing cash on the balance sheet and the revolving line of credit as part of its growth strategy[140]. Debt and Financing - The ABL Facility was amended on September 6, 2024, increasing maximum revolver borrowings from $225.0 million to $350.0 million and extending its maturity to September 6, 2029[177]. - As of October 31, 2024, the outstanding balance under the ABL Facility was approximately $20,000, with $335.0 million of available borrowing capacity[178]. - The company believes existing cash, cash flow from operations, and borrowing capacity will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[168]. Asset Management - Total current assets increased to $112,360,000 in 2024 from $94,270,000 in 2023, primarily driven by cash and cash equivalents rising to $43,041,000[233]. - Total liabilities decreased to $551,275,000 in 2024 from $571,285,000 in 2023, with total current liabilities significantly reduced from $83,976,000 to $56,331,000[233]. - Cash and cash equivalents at the end of the period increased to $43,041,000 from $15,861,000, marking a 171.5% increase[242]. Goodwill and Impairment - The company performed its annual impairment analysis on August 31, determining that goodwill and long-lived intangible assets were not impaired for fiscal 2024 and 2023[203]. - The U.S. Concrete Pumping segment recorded accumulated impairment losses of $38.5 million as of October 31, 2024[332]. - Goodwill balance as of October 31, 2024, is $222.996 million, reflecting an increase from $221.517 million in 2023, with accumulated impairment losses remaining at $52.9 million[332]. Lease Obligations - Operating lease expense for the year ended October 31, 2024, was $7.324 million, an increase from $6.522 million in 2023[334]. - Total lease payments for operating leases are projected to be $34.638 million over the next five years, with a long-term portion of $21.716 million as of October 31, 2024[336]. - The weighted average remaining lease term for operating leases is 7.6 years, while finance leases have a term of 2 years[335].