Southland (US:SLND)2024-05-13 21:00Financial Performance - Revenue for Q1 2024 was $288,097,000, an increase of 4.6% compared to $274,829,000 in Q1 2023[18] - Gross profit for Q1 2024 was $20,421,000, up from $18,943,000 in Q1 2023, reflecting a gross margin improvement[18] - Operating income increased to $6,027,000 in Q1 2024 from $3,372,000 in Q1 2023, representing a significant growth[18] - Net income for Q1 2024 was $525,000, a turnaround from a net loss of $4,266,000 in Q1 2023[18] - For the three months ended March 31, 2024, gross profit was $20,421,000, representing a 7.1% margin, compared to $18,943,000 and a 6.9% margin for the same period in 2023[74] - Net income for the three months ended March 31, 2024, was $525,000, a significant improvement from a net loss of $4,266,000 in the same period of 2023[25] - Net income attributable to Southland Stockholders for the three months ended March 31, 2024, was a loss of $406,000, an improvement from a loss of $4.7 million in the same period in 2023[144] Assets and Liabilities - Total assets as of March 31, 2024, were $1,227,416,000, compared to $1,201,068,000 as of December 31, 2023[15] - Total liabilities increased to $966,437,000 as of March 31, 2024, from $940,504,000 at the end of 2023[15] - Total stockholders' equity as of March 31, 2024, was $260,979,000, slightly up from $260,564,000 at the end of 2023[15] - Total long-term debt as of March 31, 2024, was $255,590,000, an increase from $251,906,000 as of December 31, 2023[75] Cash Flow and Operational Efficiency - Cash flows used in operating activities decreased to $9,897,000 for the three months ended March 31, 2024, compared to $34,779,000 in the prior year, indicating improved operational efficiency[25] - Net cash used in operating activities was $9.9 million for the three months ended March 31, 2024, compared to $34.8 million for the same period in 2023, indicating a significant improvement[153] - The primary drivers for cash used in operating activities included increases in accounts receivables and contract assets of $32.1 million and $16.2 million, respectively, offset by an increase in accounts payable of $40.0 million[153] Revenue Segmentation - Civil segment revenue was $84.3 million, accounting for 29.3% of total revenue, compared to $73.0 million (26.6%) in the prior year[73] - Transportation segment revenue was $203.8 million, representing 70.7% of total revenue, slightly up from $201.8 million (73.4%) year-over-year[73] - Revenue from the Materials & Paving segment for the three months ended March 31, 2024, was $38.6 million, down from $58.1 million in the same period of 2023, reflecting a decline of approximately 33.8%[125] Debt and Financing - The weighted average interest rate on total debt outstanding increased to 6.21% as of March 31, 2024, from 6.12% as of December 31, 2023[75] - The company amended its revolving credit facility to extend maturity to April 15, 2025, with $95,000,000 drawn as of March 31, 2024[78] - The revolving credit facility was amended to a limit of $95.0 million, requiring a $5.0 million cash collateral deposit by June 15, 2024[157] - In July 2023, the company refinanced approximately $76.4 million of existing secured notes for a new equipment note of $113.5 million at a fixed rate of 7.25%[158] Other Financial Metrics - The effective tax rate for the three months ended March 31, 2024, was 36.9%, compared to a negative 69.8% for the same period in 2023[90][91] - The company incurred a loss on extinguishment of debt of $600,000 related to the refinancing of secured notes[79] - Adjusted EBITDA for the three months ended March 31, 2024, was $10.9 million, a decrease from $12.7 million in the same period in 2023[144] Backlog and Future Expectations - Backlog as of March 31, 2024, was $2.6 billion, down from $2.8 billion at the end of 2023, after accounting for new contracts and revenue recognized[146] - The company expects to recognize approximately 42% of its Remaining Unsatisfied Performance Obligations (RUPOs) as revenue during the next twelve months[95] - Approximately 7.7% of Southland's backlog as of March 31, 2024, was in the Materials & Paving segment, which is expected to be substantially completed in the next 15 months[125]