Southland (US:SLND)2025-05-13 21:20Financial Performance - Revenue for Q1 2025 was $239,486,000, a decrease of 16.9% compared to $288,097,000 in Q1 2024[18] - Gross profit increased to $21,480,000, up 5.2% from $20,421,000 in the same period last year[18] - Net loss attributable to Southland Stockholders was $4,552,000, compared to a loss of $406,000 in Q1 2024[18] - Basic net loss per share attributable to common stockholders was $(0.08), compared to $(0.01) in Q1 2024[18] - For the three months ended March 31, 2025, Southland Holdings reported a net loss of $2.786 million compared to a net income of $0.525 million for the same period in 2024[25] - Gross profit for Q1 2025 was $21.5 million, an increase of $1.1 million, or 5.2%, compared to Q1 2024[154] - EBITDA for Q1 2025 was $10.08 million, down from $10.95 million in Q1 2024[169] Assets and Liabilities - Total current assets increased slightly to $884,954,000 from $881,652,000 at the end of 2024[17] - Total liabilities rose to $1,030,271,000, up from $1,028,240,000 at the end of 2024[17] - Cash and cash equivalents decreased to $65,052,000 from $72,185,000 at the end of 2024[17] - Total stockholders' equity decreased to $159,130,000 from $163,658,000 at the end of 2024[17] - Total long-term debt as of March 31, 2025, was $241,309,000, down from $255,625,000 as of December 31, 2024[79] - Total debt as of March 31, 2025, was $288.1 million, with $46.8 million due within the next twelve months[179] Revenue Segmentation - Civil segment revenue increased to $102.9 million, representing 43.0% of total revenue, compared to $84.3 million or 29.3% in the prior year[76] - Transportation segment revenue decreased to $136.6 million, accounting for 57.0% of total revenue, down from $203.8 million or 70.7% in the previous year[76] Costs and Expenses - Total cost of construction for the three months ended March 31, 2025, was $218.0 million, a decrease of 18.6% from $267.7 million in the same period of 2024[77] - Selling, general, and administrative expenses for Q1 2025 were $16.5 million, an increase of $2.1 million, or 14.4%, compared to Q1 2024[155] - Interest expense increased to $8,874,000 from $5,655,000 in Q1 2024[18] - Interest expense for Q1 2025 was $8.9 million, an increase of $3.2 million, or 56.9%, compared to Q1 2024[156] Cash Flow - Cash flows from operating activities generated $6.429 million in Q1 2025, a significant improvement from a cash outflow of $9.897 million in Q1 2024[25] - Net cash provided by operating activities was $6.43 million in Q1 2025, compared to a net cash used of $9.90 million in Q1 2024[176] Backlog and Performance Obligations - Total backlog as of March 31, 2025, was $2.47 billion, down from $2.57 billion at the end of 2024, after recognizing $239.49 million in contract revenue[170] - Civil segment backlog increased to $976.34 million as of March 31, 2025, from $961.21 million at the end of 2024[171] - Transportation segment backlog decreased to $1.49 billion as of March 31, 2025, from $1.61 billion at the end of 2024[171] - As of March 31, 2025, the Company has $2.5 billion in Remaining Unsatisfied Performance Obligations (RUPO), expecting to recognize approximately 40% as revenue in the next twelve months[114] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 10.1%, significantly lower than 36.9% for the same period in 2024[107] - The company is in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[88] - The Company was in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[189] Other Financial Metrics - The company has outstanding surety bonds as of March 31, 2025, as a condition for entering into a substantial portion of its construction contracts[104] - The company has secured notes with interest rates ranging from 0.00% to 12.90%, expiring between December 2025 and March 2033[80] - The company has an outstanding balance of 608,254 Restricted Stock Units (RSUs) as of March 31, 2025, with a weighted-average grant-date fair value of $4.41[127] Management and Governance - An employment agreement with Keith Bassano was established on May 9, 2025, with an annual base salary of $357,000 and a performance bonus targeted between 80% and 200% of the base salary[202] - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended March 31, 2025[197] - The Company has established effective disclosure controls and procedures as of the end of the reporting period[196]