Southland (US:SLND)2025-11-12 22:21Financial Performance - Total revenue for the three months ended September 30, 2025, was $213,343,000, an increase of 23% compared to $173,320,000 for the same period in 2024[17] - Gross profit for the three months ended September 30, 2025, was $3,275,000, compared to a gross loss of $51,105,000 in the same period last year[17] - The net loss attributable to Southland stockholders for the three months ended September 30, 2025, was $75,269,000, compared to a net loss of $54,727,000 for the same period in 2024[17] - The company reported a comprehensive loss of $78,156,000 for the three months ended September 30, 2025, compared to a comprehensive loss of $57,891,000 for the same period in 2024[18] - For the nine months ended September 30, 2024, Southland Holdings reported a net loss of $120.463 million, compared to a net loss of $65.736 million for the same period in 2023, indicating a significant increase in losses[22] - The company reported a net loss of $89.7 million for the nine months ended September 30, 2025[192] Assets and Liabilities - Total current assets decreased to $869,679,000 as of September 30, 2025, from $881,652,000 as of December 31, 2024[16] - Total liabilities increased to $1,048,628,000 as of September 30, 2025, compared to $1,028,240,000 as of December 31, 2024[16] - Cash and cash equivalents decreased to $40,482,000 as of September 30, 2025, from $72,185,000 as of December 31, 2024[16] - The company’s accumulated deficit increased to $214,745,000 as of September 30, 2025, from $124,618,000 as of December 31, 2024[16] - As of September 30, 2025, total cash, cash equivalents, and restricted cash decreased to $57.344 million from $87.561 million at the end of 2024, representing a decline of approximately 34.4%[42] Cash Flow and Financing - Operating activities generated a net cash inflow of $6.893 million for the nine months ended September 30, 2024, a decrease from $12.242 million in the prior year[25] - The company experienced a decrease in cash and cash equivalents, ending the period with $57.344 million, down from $106.748 million at the end of the previous year[25] - Cash paid for interest increased to $26.781 million from $18.886 million, reflecting higher financing costs[25] - The company had a net change in cash, cash equivalents, and restricted cash of $(30.2) million for the nine months ended September 30, 2025, compared to an increase of $42.9 million in 2024[191] - The Credit Agreement provides for a four-year secured $160.0 million term loan facility, with a maturity date of September 30, 2028[197] Segment Performance - The Civil segment generated revenue of $99.5 million (46.6% of total revenue) for the three months ended September 30, 2025, compared to $55.8 million (32.2%) in the same period of 2024[73] - The Transportation segment reported revenue of $113.9 million (53.4% of total revenue) for the three months ended September 30, 2025, down from $117.5 million (67.8%) in the same period of 2024[73] - Civil segment revenue for the nine months ended September 30, 2025, was $283.9 million, an increase of $64.4 million, or 29.4%, compared to the same period in 2024[175] - Transportation segment revenue for the nine months ended September 30, 2025, was $384.3 million, a decrease of $109.2 million, or 22.1%, compared to the same period in 2024[177] Expenses - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $14,587,000, down from $17,492,000 in the same period last year[17] - Interest expense for the three months ended September 30, 2025, was $9.2 million, an increase of $1.6 million, or 21.9%, compared to the same period in 2024[155] - Depreciation and amortization expenses increased to $17.530 million from $16.925 million year-over-year, reflecting ongoing investment in infrastructure[25] Tax and Valuation - The effective tax rate for the three months ended September 30, 2025, was (289.0%), significantly impacted by state income taxes and valuation allowances against deferred tax assets[102] - The company recorded a valuation allowance of approximately $62.5 million related to its U.S. federal and state net deferred tax assets as of September 30, 2025[103] Market and Future Outlook - The company is focused on expanding its capabilities in specialty infrastructure construction, with a diverse portfolio of projects across various sectors[27] - The company expects favorable changes from the One Big Beautiful Bill Act, which may allow for the acceleration of previously capitalized R&D expenditures[106] - The Company anticipates further spending on infrastructure projects due to economic stimulus initiatives, including the Infrastructure Investment and Jobs Act passed in 2021[136] - The company has seen an increase in demand for specialty construction projects at federal, state, and local levels, which is expected to continue[136] Stock and Compensation - The weighted average shares outstanding for basic and diluted shares were 54,113,036 for the three months ended September 30, 2025[17] - As of September 30, 2025, there were 788,151 Restricted Stock Units (RSUs) outstanding with a weighted-average grant-date fair value of $3.93 per RSU, compared to 679,371 RSUs with a value of $5.31 per RSU as of September 30, 2024[122] - The Company recognized a total compensation cost of $0.1 million and $0.8 million for the three and nine months ended September 30, 2025, respectively, compared to $0.4 million and $1.7 million for the same periods in 2024[123]