crete Pumping (US:BBCP)2025-03-11 21:05Revenue Performance - Total revenue for the three months ended January 31, 2025, was $86.4 million, a decrease of 11.5% from $97.7 million in the same period of 2024 [105]. - Revenue from the U.S. Concrete Pumping segment decreased by 14.6%, or $9.8 million, from $66.7 million in Q1 2024 to $56.9 million in Q1 2025, primarily due to adverse weather conditions and a slowdown in commercial construction [106]. - Revenue for the U.S. Concrete Waste Management Services segment increased by 6.9%, or $1.1 million, from $15.6 million in Q1 2024 to $16.7 million in Q1 2025, driven by organic growth and pricing improvements [107]. - Revenue for the U.K. Operations segment decreased by 16.7%, or $2.6 million, from $15.4 million in Q1 2024 to $12.8 million in Q1 2025, attributed to lower volumes from a slowdown in commercial construction [108]. Profitability and Expenses - Gross profit for the first quarter of fiscal 2025 was $31.2 million, down 6.2% from $33.3 million in Q1 2024, with a gross margin improvement to 36.1% from 34.1% [109]. - General and administrative expenses decreased by $4.1 million to $27.8 million in Q1 2025, representing 32.2% of revenue compared to 32.7% in Q1 2024 [111]. - Interest expense for Q1 2025 was $5.8 million, down $0.7 million from $6.5 million in Q1 2024, primarily due to a lower average ABL revolver draw [113]. - The effective tax rate for the three months ended January 31, 2025, was 28.2%, compared to 20.9% in the same period of 2024 [115]. Net Income and Loss - U.S. Concrete Pumping segment reported a net loss of $3.1 million for Q1 2025, a slight improvement from a net loss of $3.2 million in Q1 2024, with adjusted EBITDA decreasing by 21.0% to $9.2 million [119]. - U.S. Concrete Waste Management Services segment achieved a net income of $0.2 million in Q1 2025, compared to a net loss of $1.2 million in Q1 2024, with adjusted EBITDA increasing by 12.0% to $5.0 million [120]. - U.K. Operations segment reported a net income of $0.2 million for Q1 2025, down from $0.5 million in Q1 2024, with adjusted EBITDA decreasing by 11.7% to $2.8 million [121]. - Total net loss for the company was $2.6 million in Q1 2025, an improvement from a net loss of $3.8 million in Q1 2024, with total adjusted EBITDA declining by 11.8% to $17.0 million [119]. Cash Flow and Liquidity - As of January 31, 2025, the company had $85.1 million in cash and cash equivalents and $324.5 million in available borrowing capacity under its ABL Facility, totaling $409.6 million in liquidity [123]. - The company reported net cash provided by operating activities of $6.0 million for Q1 2025, a decrease from $20.3 million in Q1 2024, reflecting changes in working capital and business activity [137][138]. - Net cash used in operating activities was $3.9 million for the three months ended January 31, 2025, compared to $16.5 million for the same period in 2024 [139][140]. - Net cash provided by financing activities was $40.0 million for the three months ended January 31, 2025, primarily from $425.0 million in proceeds from the issuance of the 2032 Notes [141]. Capital Expenditures and Debt Management - Gross capital expenditures for Q1 2025 were approximately $5.8 million, significantly lower than $17.8 million in Q1 2024, indicating a strategic reduction in capital spending [127]. - The company closed a private offering of $425.0 million in senior secured second lien notes due 2032, with proceeds used to redeem existing senior notes and fund the special dividend [131]. - The ABL Facility was amended to increase maximum borrowings from $225.0 million to $350.0 million, extending its maturity to September 2029 [132]. - The company incurred $5.8 million for the purchase of property, plant, and equipment during the three months ended January 31, 2025 [139]. Special Dividend - The company declared a special cash dividend of $1.00 per share, totaling $53.1 million, to be paid on February 3, 2025, funded by cash on hand and proceeds from new 2032 Notes [129].