crete Pumping (US:BBCP)2023-01-30 16:00Revenue Growth - For the twelve months ended October 31, 2022, the company's revenue increased by 27.1%, reaching $401.3 million compared to $315.8 million in the previous year[144]. - The U.S. Concrete Pumping segment revenue grew by 29.2%, or $67.0 million, from $229.5 million in the prior year to $296.5 million in fiscal 2022[148]. - The U.K. Operations segment revenue increased by 14.2%, or $6.8 million, from $48.1 million to $54.9 million, with a 24.7% increase when excluding foreign currency translation[149]. - The U.S. Concrete Waste Management Services segment saw a revenue improvement of 30.1%, or $11.6 million, from $38.6 million to $50.2 million[150]. Profitability - Gross profit for the fiscal year 2022 was $163.6 million, an increase of $25.9 million from $137.7 million in fiscal 2021, although gross margin declined by 280 basis points to 40.8%[144]. - The company reported a net income of $28.7 million for the fiscal year 2022, compared to a net loss of $15.1 million in the previous year[145]. - The gross margin for the twelve months ended October 31, 2022, was 40.8%, down from 43.6% for the previous twelve months, primarily due to significant inflation in input costs[152]. - Adjusted EBITDA for the year ended October 31, 2022 was $118.6 million, compared to $104.3 million for the previous year[187]. - EBITDA for the year ended October 31, 2022 was $117.6 million, up from $68.7 million in the previous year[187]. Expenses and Costs - General and Administrative (G&A) expenses for the twelve months ended October 31, 2022, were $113.2 million, an increase of $13.8 million from $99.4 million in the previous year, with G&A expenses as a percentage of revenue decreasing to 28.2% from 31.5%[153]. - Rising fuel prices reduced gross profit by approximately $10.1 million and gross margin by about 2.5% since October 31, 2021[138]. - Interest expense, net for the year ended October 31, 2022, was $25.9 million, an increase of $0.7 million from the same period a year ago[158]. Assets and Liquidity - Total assets increased from $792.7 million as of October 31, 2021, to $887.5 million as of October 31, 2022, primarily due to growth in the U.S. Concrete Pumping segment[146]. - As of October 31, 2022, the company had $7.5 million in cash and cash equivalents and $103.7 million of available borrowing capacity under the ABL Facility, totaling $111.2 million in available liquidity[167]. - The outstanding balance under the ABL Facility as of October 31, 2022 was $52.1 million, with the Company in compliance with all debt covenants[179]. Strategic Acquisitions - The company executed strategic acquisitions, including Hi-Tech for $12.3 million, Pioneer for $20.2 million, and Coastal for $30.8 million, enhancing its market presence[133]. - The Company used $124.1 million for investing activities during the twelve months ended October 31, 2022, including $101.9 million for property, plant, and equipment and $30.8 million for the acquisition of Coastal[183]. Market Outlook - The company anticipates fluctuations in residential end market volumes due to macroeconomic factors, while commercial and infrastructure markets may continue to show strong demand[139]. Tax and Fair Value - The company recorded an income tax expense of $5.5 million on a pretax income of $34.2 million for the twelve months ended October 31, 2022[159]. - The company recognized a $9.9 million gain on the fair value remeasurement of liability-classified warrants for the year ended October 31, 2022, compared to a $9.9 million expense in the previous year[156]. - The fair value of U.S. Concrete Waste Management Services exceeded its carrying value by 82% as of August 31, 2022[200]. - The fair value of U.K. Operations exceeded its carrying value by 32% as of the same date[200]. - The U.S. Concrete Pumping reporting unit had goodwill of $147.5 million, with its fair value approximately 7% greater than its carrying value[201]. - Management's projections included terminal growth rates of 3.0% and discount rates ranging from 10.0% to 11.3%[200]. - The company applies ASC 805 principles for business combinations, recording assets at fair value and recognizing goodwill when applicable[202]. - Fair value determinations require significant estimates and assumptions, impacting reported depreciation, amortization, and income tax expenses[203].