Core Insights - Shimmick Corp. reported a net loss of $2 million for Q3 2024, with revenue of $166 million, a decrease from $175 million in Q3 2023 [2][6][17] - The company achieved a gross margin of 12% for the quarter, down from 17% in the same period last year [6][17] - A significant settlement of $97 million related to the Golden Gate Bridge project is expected to be collected before the end of 2024, marking the resolution of major legal claims from legacy projects [2][3][5] Financial Performance - Revenue for Shimmick Projects was $101 million in Q3 2024, down from $110 million in Q3 2023, primarily due to reduced activity on existing jobs [8][9] - Adjusted EBITDA for the quarter was $30 million, compared to $42 million in Q3 2023 [18] - The backlog as of September 27, 2024, stood at over $834 million, with more than 85% attributed to Shimmick Projects [2] Transformation Initiatives - The company is advancing its Transformation Plan, which includes the hiring of Ural Yal as the new CEO, effective December 2, 2024 [4][5] - A sale-leaseback transaction of the equipment yard in Tracy, California, resulted in a $17 million gain in Q3 2024 [4] - A strategic decision was made to enhance the current ERP system, leading to a one-time charge of $16 million in Q3 2024 [4][15] Project Updates - The Golden Gate Bridge project settlement includes a contract change order for a reduced scope of work valued at $6 million [3] - Shimmick expects to reach substantial completion of its onsite portions of the GGB project by Q3 2025 [3] Market Outlook - The company anticipates that the recently passed $10 billion water-focused California Proposition 4 will provide additional market support [6] - For the full fiscal year 2024, Shimmick expects Shimmick Projects revenue to remain flat, with gross margins between 4% to 7% [19]
Shimmick Corporation Announces Third Quarter 2024 Results