What happened today to a stock of paychecks, the payroll processor human capital management company that caters to small medium-sized businesses after reporting what to me seemed like a real solid set of numbers this morning. Uh this the stock plunged 7% early in the trading session largely because I think some people felt the margins are taking a hit. But as I've told you repeatedly, this stock tends to sell off in response to earnings even when the numbers are good.Maybe Wall Street got the memo because u ...

Core Insights - LHV Group experienced significant growth in business volumes, loans, and deposits in August, with the consolidated loan portfolio increasing by EUR 165 million to EUR 5.2 billion and deposits rising by EUR 91 million to EUR 7.72 billion [1][7] - The company reported a consolidated net profit of EUR 7.9 million for August, with all subsidiaries contributing positively to this figure [2] - The number of clients for LHV Pank grew by 2,900, reaching a total of 479,000, with record highs in loan and deposit volumes [3] Loan and Deposit Performance - LHV Pank's loan volumes increased by EUR 108 million, reaching EUR 4.55 billion, while deposits rose by EUR 105 million to EUR 6.89 billion [3] - In the UK, LHV Bank's loan portfolio grew by EUR 56 million to EUR 642 million, with direct deposits increasing by EUR 13 million to EUR 33 million [4] Subsidiary Performance - AS LHV Pank earned EUR 7.4 million, LHV Bank Ltd EUR 0.1 million, AS LHV Kindlustus EUR 0.2 million, and AS LHV Varahaldus EUR 0.3 million in net profit [2] - LHV Kindlustus signed new insurance contracts worth EUR 2.6 million, with approximately 287,000 valid contracts as of the end of August [5] Fund Management - LHV Varahaldus funds showed positive returns, with larger funds increasing by 1.6% and 1.5%, while the LHV Pension Fund Index declined by 0.2% due to currency fluctuations [6] Financial Outlook - The financial plan for LHV Group remains unchanged, with loan growth exceeding expectations by EUR 163 million and deposit volume exceeding by EUR 461 million [7] - The ongoing decline in interest rates is negatively impacting profitability, with the eight-month net profit result EUR 0.5 million below the financial plan [7] Company Overview - LHV Group is the largest domestic financial group in Estonia, with key subsidiaries including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited, serving a total of 479,000 banking clients [9]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $103.7 million, down from $109.6 million in the prior year quarter, primarily due to a volume decline in the U.S. concrete pumping segment [7][8] - Net income available to common shareholders decreased to $3.3 million, or $0.07 per diluted share, compared to $7.1 million, or $0.13 per diluted share in the prior year quarter [9] - Consolidated adjusted EBITDA was $26.8 million, down from $31.6 million in the same year-ago quarter, with an adjusted EBITDA margin of 25.8% compared to 28.8% [10] Business Line Data and Key Metrics Changes - Revenue in the U.S. concrete pumping segment was $69.3 million, down from $75.2 million in the prior year quarter, impacted by adverse weather [7][8] - U.S. concrete waste management services revenue increased 4% to $19.3 million, driven by robust can pickup volumes and sustained pricing improvement [8] - U.K. operations revenue was $15.1 million, down from $15.9 million in the same year-ago quarter due to lower volumes from a slowdown in commercial construction [8] Market Data and Key Metrics Changes - The U.S. concrete pumping business faced construction softness, particularly in interest rate-sensitive light commercial projects, while larger commercial projects remained durable but slower [4][5] - The U.K. market experienced heavier impacts from interest rates and economic uncertainty, although infrastructure projects like HS2 construction remained resilient [6] - The residential end market in the U.S. remained resilient, accounting for 32% of total revenue, supported by a structural supply-demand imbalance in housing [5] Company Strategy and Development Direction - The company remains committed to generating healthy free cash flow and maintaining flexibility for capital deployment to position for stronger performance as market conditions improve [4][12] - The focus is on disciplined growth strategy, maintaining commercial leadership, and driving efficiencies through operational excellence [13] - The company plans to continue investing in its fleet to strengthen service offerings in anticipation of a market recovery in fiscal 2026 and beyond [12] Management Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic headwinds and localized weather disruptions but expressed confidence in the business model's resilience [4] - There is cautious optimism regarding bidding activity and infrastructure projects, with expectations for continued strength in the residential market [18][19] - The company does not anticipate meaningful near-term impacts from tariffs but noted heightened uncertainty affecting customer decision-making [14] Other Important Information - The company repurchased approximately 593,000 shares for $3.8 million during the third quarter, demonstrating commitment to enhancing shareholder value [11] - Full-year guidance remains unchanged, with expected revenue between $380 million and $390 million and adjusted EBITDA between $95 million and $100 million [12] Q&A Session Summary Question: Outlook for the fourth quarter and margin expectations - Management indicated that while revenues may be down, they expect margins to trend positively due to an extra day in the fourth quarter and improved volume [15][16] Question: Insights on recovery timing and backlog - Management noted increased bidding activity and resilience in residential markets, but emphasized uncertainty regarding the timing of recovery [17][18] Question: Pricing pressure in the U.S. business - Pricing pressure persists due to competitors targeting more complex projects, with expectations for this to continue for another six months [23] Question: Factors affecting U.S. pumping margins - Lower margins are attributed to volume changes and operating leverage, with expectations for recovery as volumes improve [24][25] Question: Weather-related impacts on revenue - Management clarified that the weather-related headwind for the current quarter was $2 million compared to a worse situation last year [31] Question: Geographic footprint and market exposure - The company feels confident about its current geographic footprint but is open to expanding into new areas for sizable projects [33]