Concrete Pumping Holdings Reports Second Quarter Fiscal Year 2024 Results

Core Viewpoint - Concrete Pumping Holdings, Inc. reported a slight decline in revenue and net income for the second quarter of fiscal year 2024, primarily due to challenges in the U.S. Concrete Pumping segment, which were partially offset by strong growth in the Concrete Waste Management segment [1][5][7]. Financial Results - Revenue for Q2 FY 2024 was $107.1 million, down from $107.8 million in Q2 FY 2023 [1][5]. - Gross profit decreased to $41.8 million from $43.5 million, with a gross margin of 39.0% compared to 40.3% [1][6]. - Income from operations fell to $12.1 million from $13.2 million [1][6]. - Net income was $3.0 million, down from $5.6 million, with net income attributable to common shareholders at $2.6 million or $0.05 per diluted share, compared to $5.2 million or $0.09 per diluted share in the prior year [1][7]. - Adjusted EBITDA decreased to $27.5 million from $28.8 million, with an adjusted EBITDA margin of 25.7% compared to 26.7% [1][8]. Segment Performance - U.S. Concrete Pumping segment revenue decreased by 5% to $74.6 million, attributed to a slowdown in commercial construction, oversaturation of concrete pumps, and adverse weather conditions [1][10]. - U.K. Operations saw a 2% increase in revenue to $15.5 million, with net income rising 11% to $1.0 million [1][11]. - U.S. Concrete Waste Management Services revenue increased by 19% to $16.9 million, driven by organic growth and pricing improvements [1][12]. Management Commentary - The CEO noted that double-digit revenue growth in the U.S. Concrete Waste Management segment offset declines in the U.S. Concrete Pumping segment, which faced delays due to high interest rates and weather conditions [2][3]. - The company remains optimistic about the remainder of the year, citing a diversified business model and operational flexibility as key strengths [4]. Liquidity and Debt - As of April 30, 2024, the company had $391.4 million in debt, with net debt at $373.5 million and total available liquidity of $216.9 million [1][9]. Fiscal Year 2024 Outlook - The company expects fiscal year 2024 revenue to range between $455.0 million to $465.0 million and adjusted EBITDA to be between $120.0 million to $125.0 million, maintaining an outlook for free cash flow of at least $75.0 million [1][13].