crete Pumping (BBCP) - 2023 Q1 - Quarterly Report

Part I. Financial Information Financial Statements The company reported a 9.5% revenue increase to $93.6 million and a significant net income rise to $6.5 million for the quarter Condensed Consolidated Balance Sheets - Total assets decreased slightly from $887.5 million on October 31, 2022, to $882.1 million on January 31, 2023[10] - Total liabilities decreased from $583.2 million to $570.6 million over the same period, while total stockholders' equity increased from $279.3 million to $286.5 million[10] Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Jan 31, 2023 (Unaudited) | Oct 31, 2022 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $4,049 | $7,482 | | Trade receivables, net | $53,020 | $62,882 | | Total current assets | $76,287 | $81,556 | | Property, plant and equipment, net | $422,800 | $419,377 | | Goodwill | $221,905 | $220,245 | | Total assets | $882,065 | $887,489 | | Liabilities & Equity | | | | Revolving loan | $50,247 | $52,133 | | Total current liabilities | $102,916 | $110,280 | | Long term debt, net | $370,824 | $370,476 | | Total liabilities | $570,567 | $583,162 | | Total stockholders' equity | $286,498 | $279,327 | Condensed Consolidated Statements of Operations - Revenue for the three months ended January 31, 2023, increased by 9.5% year-over-year[13] - Net income saw a substantial increase to $6.5 million from $1.2 million, largely due to a $4.6 million gain from the change in fair value of warrant liabilities[13] Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Jan 31, 2023 | Three Months Ended Jan 31, 2022 | | :--- | :--- | :--- | | Revenue | $93,575 | $85,448 | | Gross profit | $36,454 | $34,127 | | Income from operations | $9,413 | $7,385 | | Net income | $6,475 | $1,183 | | Basic EPS | $0.11 | $0.01 | | Diluted EPS | $0.11 | $0.01 | Condensed Consolidated Statements of Comprehensive Income (Loss) - Total comprehensive income was $11.5 million for the three months ended January 31, 2023, a significant improvement from a comprehensive loss of $0.3 million in the prior-year period[16] Comprehensive Income (Loss) (in thousands) | Component | Three Months Ended Jan 31, 2023 | Three Months Ended Jan 31, 2022 | | :--- | :--- | :--- | | Net income | $6,475 | $1,183 | | Foreign currency translation adjustment | $5,052 | $(1,440) | | Total comprehensive income (loss) | $11,527 | $(257) | Condensed Consolidated Statements of Changes in Stockholders' Equity - Total stockholders' equity increased to $286.5 million, driven by net income and positive foreign currency adjustments, partially offset by $4.9 million in share repurchases[20] Condensed Consolidated Statements of Cash Flows - Net cash from operating activities increased to $17.9 million, while financing activities used $6.7 million, primarily for share repurchases[24] Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Jan 31, 2023 | Three Months Ended Jan 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,916 | $13,188 | | Net cash used in investing activities | $(14,787) | $(34,531) | | Net cash provided by (used in) financing activities | $(6,689) | $14,677 | | Net decrease in cash and cash equivalents | $(3,433) | $(6,511) | Notes to Unaudited Condensed Consolidated Financial Statements - The company provides concrete pumping and industrial cleanup services in the U.S. and U.K., with business being seasonal[32][33][34] - No acquisitions were completed in Q1 2023, but the company acquired Cherokee Pumping for $6.3 million subsequent to the quarter end[46][47][51][111] - As of January 31, 2023, the company had $375.0 million in Senior Notes and an outstanding balance of $50.2 million on its ABL Facility[78][80] - The board approved a $10.0 million increase to the share repurchase program and repurchased 760,457 shares for $4.9 million during the quarter[99][100] Revenue by Segment (in thousands) | Segment | Three Months Ended Jan 31, 2023 | Three Months Ended Jan 31, 2022 | | :--- | :--- | :--- | | U.S. Concrete Pumping | $67,187 | $63,069 | | U.K. Operations | $12,708 | $12,022 | | U.S. Concrete Waste Management Services | $13,773 | $10,457 | | Total Revenue | $93,575 | $85,448 | Management's Discussion and Analysis of Financial Condition and Results of Operations Revenue grew 9.5% to $93.6 million, driven by acquisitions and organic growth, while net income rose significantly to $6.5 million - The U.S. Concrete Pumping segment's revenue growth was primarily driven by the $4.4 million contribution from the Coastal acquisition[129] - The U.K. Operations segment's revenue increased by 17.9% on a constant currency basis due to improved pricing[130] - The U.S. Concrete Waste Management Services segment saw a 31.7% revenue increase from organic volume growth and pricing improvements[131] - Adjusted EBITDA for Q1 2023 was $25.0 million, a 7.4% increase from $23.3 million in Q1 2022, driven by the U.S. Concrete Waste Management segment[141][144] - As of January 31, 2023, the company had total available liquidity of $110.2 million[147] Q1 2023 vs Q1 2022 Performance (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Revenue | $93,575 | $85,448 | | Gross Profit | $36,454 | $34,127 | | Gross Margin | 39.0% | 39.9% | | Net Income | $6,475 | $1,183 | Q1 Revenue Growth by Segment (in thousands) | Segment | Q1 2023 Revenue | Q1 2022 Revenue | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | U.S. Concrete Pumping | $67,187 | $63,069 | $4,118 | 6.5% | | U.K. Operations | $12,708 | $12,022 | $686 | 5.7% | | U.S. Concrete Waste Management | $13,773 | $10,457 | $3,316 | 31.7% | | Total Revenue | $93,575 | $85,448 | $8,127 | 9.5% | Quantitative and Qualitative Disclosures About Market Risk This section is not applicable for this reporting period - The company states that this item is not applicable[172] Controls and Procedures Disclosure controls and procedures were deemed ineffective as of January 31, 2023, due to two ongoing material weaknesses - The Chief Executive Officer and Chief Financial Officer concluded that as of January 31, 2023, the company's disclosure controls and procedures were not effective due to ongoing material weaknesses[173] - The company has implemented measures to remediate two previously disclosed material weaknesses related to manual journal entries and IT user access[174][175] - Management notes that newly implemented controls have not operated for a sufficient period to conclude that the material weaknesses have been fully remediated[173][175] Part II. Other Information Legal Proceedings The company is not party to any litigation expected to have a material adverse effect on its business - The company reports that it is not presently a party to any material litigation[177] Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to the Risk Factors from the company's Annual Report have been reported[178] Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 842,813 shares for $5.5 million in Q1 2023 and increased its share repurchase program by $10.0 million - In January 2023, the board of directors authorized a $10.0 million increase to the existing share repurchase program, expiring on March 31, 2024[180] Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Nov 2022 | 240,618 | $6.89 | | Dec 2022 | 397,478 | $6.47 | | Jan 2023 | 204,717 | $6.19 | | Total | 842,813 | $6.60 | Defaults Upon Senior Securities None - The company reports no defaults upon senior securities[181] Mine Safety Disclosures Not applicable - This item is not applicable to the company[181] Other Information None - The company reports no other information for this item[181] Exhibits This section lists the exhibits filed with the report, including CEO and CFO certifications and XBRL data files - The exhibits filed with this Form 10-Q include CEO and CFO certifications as required by Rule 13a-14(a) and 13a-14(b), as well as Inline XBRL documents[183] Signatures