Concrete Pumping Holdings Reports Strong Second Quarter Fiscal Year 2021 Results

6/14, 10:05 PM (Source: GlobeNewswire)

DENVER, June 14, 2021 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for its second quarter of fiscal year 2021 ended April 30, 2021.

Second Quarter Fiscal Year 2021 Summary vs. Second Quarter of Fiscal Year 2020 (where applicable)

  • Revenue increased 4% to $76.9 million compared to $74.0 million.

  • Gross margin increased 30 basis points to 43.3% compared to 43.0%.

  • Net loss attributable to common shareholders improved significantly to $11.4 million or $(0.21) per diluted share, compared to a net loss attributable to common shareholders of $56.2 million or $(1.06) per diluted share.

    • The second quarter of 2021 included a $11.5 million non-cash loss on the revaluation of warrant liabilities compared to a $3.3 million non-cash gain in the same period of fiscal 2020.
    • The second quarter of 2020 included a $57.9 million non-cash goodwill and intangibles impairment charge due to the COVID-19 impact depressing the Company’s market capitalization.

  • Adjusted EBITDA1 increased 7% to $25.0 million compared to $23.5 million, with adjusted EBITDA margin increasing 80 basis points to 32.6% compared to 31.8%.

  • Amounts outstanding under debt agreements was $376.1 million with net debt1 of $362.4 million. Total available liquidity increased to $134.9 million as of April 30, 2021 compared to $118.4 million as of January 31, 2021.

Management Commentary

“Our second quarter continued to highlight the resilience of our business, the flexibility of our projects and the profitability of our model,” said Bruce Young, CEO of Concrete Pumping Holdings. “We experienced a record-setting cold weather event in our South and Central regional markets, yet we delivered a quarter that met our internal expectations. This included continued growth in our market share, strength in residential and infrastructure projects, and recovery in our commercial work. We also continued to demonstrate our strong financial profile with approximately $29 million in year-to-date free cash flow1 that contributed to us improving total available liquidity to $134.9 million. Given our execution to date, we remain in a strong position to execute upon our strategic priorities and financial outlook in 2021.”

_______________
1 Adjusted EBITDA, Adjusted EBITDA margin, net debt and free cash flow are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definitions of these non-GAAP financial measures and a reconciliation to their most comparable GAAP measures.

Second Quarter Fiscal Year 2021 Financial Results

Revenue in the second quarter of fiscal year 2021 increased 4% to $76.9 million compared to $74.0 million in the second quarter of fiscal year 2020. The increase was driven by increased revenue from the Company’s U.K. Operations and its U.S. Concrete Waste Management business.

Gross profit in the second quarter of fiscal year 2021 increased 5% to $33.3 million compared to $31.9 million in the year-ago quarter. Gross margin improved to 43.3% compared to 43.0% in the prior year quarter.

G&A expenses for the fiscal 2021 second quarter were $26.5 million compared to $26.4 million in the fiscal 2020 second quarter. As a percent of revenue, G&A expenses were 34.4% for the fiscal 2021 second quarter compared to 35.6% in the fiscal 2020 second quarter. Excluding amortization of intangible assets and stock-based compensation expense, G&A expenses were down $0.3 million year-over-year to $16.2 million (21.1% of revenue) from $16.4 million (22.2% of revenue).

Net loss attributable to common shareholders improved significantly to $11.4 million or $(0.21) per diluted share, compared to a net loss attributable to common shareholders of $56.2 million or $(1.06) per diluted share. As previously disclosed, the Company recently determined that its outstanding warrants should be accounted for as liabilities and recorded at fair value on the date of the transaction and subsequently re-measured to fair value at each reporting date. For the three months ended April 30, 2021 and 2020, the Company recognized a non-cash loss of $11.5 million and a non-cash gain of $3.3 million, respectively, associated with the change in fair value of warrant liabilities.

Excluding the after-tax impact from the $57.9 million goodwill and intangibles impairment charge in the second quarter of fiscal 2020 and the non-cash gains or losses from the revaluation of warrant liabilities during both years, net income to common shareholders for the second quarter of 2021 was $0.1 million or $0.00 per diluted share versus net loss to common shareholders of $3.9 million or $(0.08) per diluted share.

Adjusted EBITDA in the second quarter of fiscal year 2021 increased 7% to $25.0 million compared to $23.5 million in the year-ago quarter. Adjusted EBITDA margin increased to 32.6% compared to 31.8% in the year-ago quarter, with the improvement mainly due to the increase in revenues.

Liquidity

On April 30, 2021, the Company had debt outstanding of $376.1 million, net debt of $362.4 million and total available liquidity of $134.9 million.

Segment Results

U.S. Concrete Pumping. Revenue in the second quarter of fiscal 2021 was $56.2 million compared to $57.5 million in the year-ago quarter. The decrease was primarily driven by severe weather conditions in Texas. Net loss in the second quarter improved to $0.9 million compared to a net loss of $44.3 million in the prior year quarter, which included the aforementioned goodwill impairment. Adjusted EBITDA was flat at $16.3 million compared to the year-ago quarter.

U.K. Operations. Revenue in the second quarter of fiscal 2021 increased 41% to $11.9 million compared to $8.4 million in the year-ago quarter. The increase was attributable to the region’s recovery from the impacts of COVID-19. Net income in the second quarter improved to $0.4 million compared to a net loss of $16.0 million in the prior year second quarter, which included the goodwill impairment. Adjusted EBITDA improved 64% to $4.1 million compared to $2.5 million in the year-ago quarter.

U.S. Concrete Waste Management Services. Revenue in the second quarter of fiscal 2021 increased 8% to $9.0 million compared to $8.3 million in the year-ago quarter. The increase was due to organic growth, pricing improvements and new product offerings. Net income in the second quarter was $0.8 million compared to $0.9 million in the prior year second quarter. Adjusted EBITDA was $4.0 million compared to $4.1 million in the year-ago quarter.

Fiscal Year 2021 Outlook

The Company continues to expect fiscal year 2021 revenue to range between $300.0 million to $310.0 million, Adjusted EBITDA to range between $105.0 million to $110.0 million, and free cash flow to range between $47.5 million and $52.5 million. The midpoint of the Company's free cash flow outlook implies an 11% yield to its current market capitalization of approximately $470 million.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2021 results.

Date: Monday, June 14, 2021
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-877-407-9039
International dial-in number: 1-201-689-8470
Conference ID: 13719885

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at www.concretepumpingholdings.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through July 5, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13719885 

About Concrete Pumping Holdings

Concrete Pumping Holdings is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan seeks to provide a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of April 30, 2021, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from approximately 30 locations, and route-based concrete waste management services from 16 locations in the U.S. and 1 shared location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Company’s brand websites at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.

ForwardLooking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “outlook” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance, including the Company's fiscal year 2021 outlook. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impacts on the Company related to the recent accounting restatement, material weakness in internal control over financial reporting and the assessment of complex accounting issues, as disclosed in the Company's From 10-K/A filed with the Securities and Exchange Commission (the "SEC") on June 11, 2021 (The "Amended 10-K"); the impacts of the COVID-19 pandemic and related economic conditions on the Company; the outcome of any legal proceedings or demand letters that may be instituted against or sent to the Company or its subsidiaries; the ability of the Company to grow and manage growth profitably and retain its key employees; the ability to complete targeted acquisitions and realize the expected benefits from recent acquisitions; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission, including the risk factors in the Company's latest Annual Report on Form 10-K, the Amended 10-K, and Quarterly Reports on Form 10-Q. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management also uses this non-GAAP financial measure to compare the Company’s performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and annual financial reports prepared for the Company’s board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Company’s ongoing operating results and in comparing the Company’s financial results with competitors who also present similar non-GAAP financial measures.

Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, loss on debt extinguishment, stock-based compensation, other income, net, and other adjustments. Adjusted EBITDA is not pro forma for acquisitions. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented. See below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP.

Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor the Company’s leverage and evaluate the Company’s consolidated balance sheet. See “Non-GAAP Measures (Reconciliation of Net Debt)” below for a reconciliation of Net Debt to amounts outstanding under debt agreements calculated in accordance with GAAP.

Free cash flow is defined as Adjusted EBITDA less net capital expenditures and cash paid for interest. This measure is not a substitute for cash flow from operations and does not represent the residual cash flow available for discretionary expenditures, since certain non-discretionary expenditures, such as debt servicing payments, are not deducted from the measure. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor and evaluate the cash flow yield of the business.

The financial statement tables that accompany this press release include a reconciliation of Adjusted EBITDA, net debt and free cash flow to the applicable most comparable U.S. GAAP financial measure. However, the Company has not reconciled the forward-looking Adjusted EBITDA guidance range and free cash flow range included in this press release to the most directly comparable forward-looking GAAP measures because this cannot be done without unreasonable effort due to the lack of predictability regarding the various reconciling items such as provision for income taxes and depreciation and amortization.

Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Company’s business. Other companies may calculate Adjusted EBITDA, net debt and free cash flow differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.

As a result of the business combination between our predecessor, Industrea Acquisition Corp., and the private operating company formerly called Concrete Pumping Holdings, Inc. (the “Business Combination”), the Company is the acquirer for accounting purposes and CPH is the acquiree and accounting predecessor. The Company’s financial statement presentation distinguishes the Company’s presentations into two distinct periods, the period up to the Business Combination closing date (labeled “Predecessor”) and the period including and after that date (labeled “Successor”). The Business Combination was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. As the underlying business and financial results of the Successor and Predecessor entities are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination, management has combined the fiscal year 2019 results of the Predecessor and Successor periods for comparability in certain tables below. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, the tables below present the non-GAAP combined results for the fiscal year 2019.

Contact:

Company:
Iain Humphries
Chief Financial Officer
1-303-289-7497
Investor Relations:
Gateway Investor Relations
Cody Slach
1-949-574-3860
BBCP@gatewayir.com  

Concrete Pumping Holdings, Inc.
Consolidated Balance Sheets

  April 30,  October 31, 
(in thousands, except per share amounts) 2021  2020 
ASSETS        
         
Current assets:        
Cash and cash equivalents $13,714  $6,736 
Trade receivables, net  41,800   44,343 
Inventory  4,555   4,630 
Income taxes receivable  352   1,602 
Prepaid expenses and other current assets  7,204   2,694 
Total current assets  67,625   60,005 
         
Property, plant and equipment, net  304,865   304,254 
Intangible assets, net  171,213   183,839 
Goodwill  225,012   223,154 
Other non-current assets  712   1,753 
Deferred financing costs  2,088   753 
Total assets $771,515  $773,758 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
         
Current liabilities:        
Revolving loan $1,087  $1,741 
Term loans, current portion  -   20,888 
Current portion of capital lease obligations  100   97 
Accounts payable  6,622   6,587 
Accrued payroll and payroll expenses  10,838   13,065 
Accrued expenses and other current liabilities  21,618   18,879 
Income taxes payable  601   1,055 
Total current liabilities  40,866   62,312 
         
Long term debt, net of discount for deferred financing costs  368,388   343,906 
Capital lease obligations, less current portion  330   380 
Deferred income taxes  65,618   68,019 
Warrant liabilities  18,485   7,031 
Total liabilities  493,687   481,648 
         
         
Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of April 30, 2021 and October 31, 2020  25,000   25,000 
         
Stockholders' equity        
Common stock, $0.0001 par value, 500,000,000 shares authorized, 56,575,186 and 56,463,992 issued and outstanding as of April 30, 2021 and October 31, 2020, respectively  6   6 
Additional paid-in capital  371,703   367,681 
Treasury stock  (461)  (131)
Accumulated other comprehensive income  4,563   (606)
(Accumulated deficit) retained earnings  (122,983)  (99,840)
Total stockholders' equity  252,828   267,110 
         
Total liabilities and stockholders' equity $771,515  $773,758 
         

Concrete Pumping Holdings, Inc.
Consolidated Statements of Operations

  Three Months Ended  Six Months Ended 
(in thousands, except share and per share amounts) April 30, 2021  April 30, 2020  April 30, 2021  April 30, 2020 
                 
Revenue $76,873  $74,041  $147,294  $147,980 
Cost of operations  43,570   42,174   84,128   83,965 
Gross profit  33,303   31,867   63,166   64,015 
Gross margin  43.3%  43.0%  42.9%  43.3%
                 
General and administrative expenses  26,472   26,381   48,860   52,988 
Goodwill and intangibles impairment  -   57,944   -   57,944 
Transaction costs  55   -   84   - 
Income (loss) from operations  6,776   (52,458)  14,222   (46,917)
                 
Interest expense, net  (6,029)  (8,765)  (12,929)  (18,268)
Loss on extinguishment of debt  -   -   (15,510)  - 
Change in fair value of warrant liabilities  (11,456)  3,254   (11,456)  2,864 
Other income, net  26   34   52   103 
Loss before income taxes  (10,683)  (57,935)  (25,621)  (62,218)
                 
Income tax expense (benefit)  170   (2,221)  (2,478)  (3,368)
Net loss  (10,853)  (55,714)  (23,143)  (58,850)
                 
Less preferred shares dividends  (499)  (470)  (1,006)  (943)
Less undistributed earnings allocated to preferred shares  -   -   -   - 
                 
Loss available to common shareholders $(11,352) $(56,184) $(24,149) $(59,793)
                 
Weighted average common shares outstanding                
Basic  53,465,799   52,782,663   53,303,302   52,752,884 
Diluted  53,465,799   52,782,663   53,303,302   52,752,884 
                 
Net (loss) income per common share                
Basic $(0.21) $(1.06) $(0.45) $(1.13)
Diluted $(0.21) $(1.06) $(0.45) $(1.13)
                 

Concrete Pumping Holdings, Inc.  
Consolidated Statements of Cash Flows

  Six Months Ended 
(in thousands, except per share amounts) April 30, 2021  April 30, 2020 
         
Net income (loss) $(23,143) $(58,850)
Adjustments to reconcile net income to net cash provided by operating activities:        
Goodwill and intangibles impairment  -   57,944 
Depreciation  13,991   13,015 
Deferred income taxes  (2,926)  (3,515)
Amortization of deferred financing costs  1,419   2,076 
Amortization of intangible assets  13,853   17,147 
Stock-based compensation expense  4,022   2,850 
Change in fair value of warrant liabilities  11,456   (2,864)
Loss on extinguishment of debt  15,510   - 
Net (loss) gain on the sale of property, plant and equipment  (869)  (477)
Payment of contingent consideration in excess of amounts established in purchase accounting  -   (526)
Net changes in operating assets and liabilities (net of acquisitions):        
Trade receivables, net  3,135   4,009 
Inventory  161   127 
Prepaid expenses and other current assets  (3,377)  (5,209)
Income taxes payable, net  750   301 
Accounts payable  (145)  (101)
Accrued payroll, accrued expenses and other current liabilities  2,359   1,060 
Net cash provided by operating activities  36,196   26,987 
         
Cash flows from investing activities:        
Purchases of property, plant and equipment  (16,672)  (23,305)
Proceeds from sale of property, plant and equipment  3,687   3,607 
Net cash used in investing activities  (12,985)  (19,698)
         
Cash flows from financing activities:        
Proceeds on long term debt  375,000   - 
Payments on long term debt  (381,206)  (10,444)
Proceeds on revolving loan  138,239   143,559 
Payments on revolving loan  (139,004)  (127,404)
Payment of debt issuance costs  (8,464)  - 
Payments on capital lease obligations  (47)  (45)
Purchase of treasury stock  (330)  (131)
Payment of contingent consideration established in purchase accounting  -   (1,161)
Net cash provided by (used in) financing activities  (15,812)  4,374 
Effect of foreign currency exchange rate on cash  (421)  (1,088)
Net increase in cash and cash equivalents  6,978   10,575 
Cash and cash equivalents:        
Beginning of period  6,736   7,473 
End of period $13,714  $18,048 
         

Concrete Pumping Holdings, Inc.
Segment Revenue

  Three Months Ended  Change 
(in thousands) April 30, 2021  April 30, 2020  $  % 
U.S. Concrete Pumping $56,168  $57,459  $(1,291)  -2.2%
U.K. Operations  11,853   8,401   3,452   41.1%
U.S. Concrete Waste Management Services  9,008   8,306   702   8.5%
Corporate  625   625   -   0.0%
Intersegment  (781)  (750)  (31)  4.1%
  $76,873  $74,041  $2,832   3.8%


  Six Months Ended  Change 
(in thousands) April 30, 2021  April 30, 2020  $  % 
U.S. Concrete Pumping $108,484  $112,564  $(4,080)  -3.6%
U.K. Operations  21,633   19,086   2,547   13.3%
U.S. Concrete Waste Management Services  17,430   16,589   841   5.1%
Corporate  1,250   1,250   -   0.0%
Intersegment  (1,503)  (1,509)  6   -0.4%
  $147,294  $147,980  $(686)  -0.5%
                 

Concrete Pumping Holdings, Inc.
Segment Adjusted EBITDA and Net Income (Loss)

  Net Income (Loss)  Adjusted EBITDA 
  Three Months Ended  Three Months Ended         
(in thousands, except percentages) April 30, 2021  April 30, 2020  April 30, 2021  April 30, 2020  $ Change  % Change 
U.S. Concrete Pumping $(925) $(44,303) $16,306  $16,319  $(13)  -0.1%
U.K. Operations  402   (15,955)  4,114   2,516   1,598   63.5%
U.S. Concrete Waste Management Services  833   859   4,002   4,055   (53)  -1.3%
Corporate  (11,163)  3,685   625   625   (0)  0.0%
  $(10,853) $(55,714) $25,047  $23,515  $1,532   6.5%


  Net Income (Loss)  Adjusted EBITDA 
  Six Months Ended  Six Months Ended         
(in thousands, except percentages) April 30, 2021  April 30, 2020  April 30, 2021  April 30, 2020  $ Change  % Change 
U.S. Concrete Pumping $(13,602) $(46,790) $31,592  $33,166  $(1,574)  -4.7%
U.K. Operations  (129)  (16,848)  6,861   5,127   1,734   33.8%
U.S. Concrete Waste Management Services  1,450   1,225   7,702   7,804   (102)  -1.3%
Corporate  (10,862)  3,563   1,250   1,250   (0)  0.0%
  $(23,143) $(58,850) $47,405  $47,347  $58   0.1%
                         

Concrete Pumping Holdings, Inc.
Quarterly Financial Performance

(dollars in millions) Revenue  Net Income (Loss)1  Adjusted EBITDA2  Capital Expenditures  Adjusted EBITDA less Capital Expenditures 
                     
Q1 2017 $46  $(6) $14  $4  $9 
Q2 2017 $51  $3  $16  $3  $13 
Q3 2017 $55  $4  $18  $1  $18 
Q4 2017 $60  $1  $20  $14  $6 
Q1 2018 $53  $18  $16  $7  $9 
Q2 2018 $56  $5  $18  $1  $17 
Q3 2018 $66  $5  $22  $11  $11 
Q4 2018 $68  $1  $22  $9  $13 
Q1 2019 $58  $(26) $17  $11  $6 
Q2 2019 $62  $(10) $18  $13  $5 
Q3 2019 $79  $3  $31  $4  $27 
Q4 2019 $84  $1  $30  $5  $25 
Q1 2020 $74  $(3) $24  $20  $4 
Q2 2020 $74  $(59) $24  $4  $20 
Q3 2020 $77  $3  $30  $6  $24 
Q4 2020 $79  $(2) $30  $6  $24 
Q1 2021 $70  $(12) $22  $8  $15 
Q2 2021 $77  $(11) $25  $5  $20 
                     

1 The Company (1) restated its consolidated financial statements as of October 31, 2019, for the Successor period from December 6, 2018 through October 31, 2019 and the unaudited interim periods within that period and (2) revised its consolidated financial statements as of October 31, 2020, for the fiscal year then ended and the unaudited interim periods within fiscal 2020 to reflect the Company's warrants as liabilities. For further information, refer to the Company's 10-K/A filed on June 11, 2021 with the Securities and Exchange Commission.

2 Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a reconciliation of such measure to its most comparable GAAP measure.

Concrete Pumping Holdings, Inc.
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

 Predecessor 
(dollars in thousands)Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 November 1,
2018
through
December 5,
2018
 
Consolidated                           
Net income (loss)$(6,296)$2,556 $3,923 $730 $17,558 $4,610 $4,825 $1,389 $(22,575)
Interest expense, net 6,386  6,095  5,456  4,811  5,087  5,126  5,477  5,735  1,644 
Income tax expense (benefit) 646  592  1,822  697  (13,544) 1,211  1,701  848  (4,192)
Depreciation and amortization 6,229  5,919  6,390  8,616  6,110  6,293  6,150  7,070  2,713 
EBITDA 6,965  15,162  17,591  14,854  15,211  17,240  18,153  15,042  (22,410)
Transaction expenses 5,304  -  (465) (349) 8  1,117  1,395  5,070  14,167 
Loss on debt extinguishment -  213  279  4,669  -  -  -  -  16,395 
Stock based compensation -  -  -  -  93  94  94  -  - 
Other expense (income) (39) (32) (19) (84) (12) (8) (14) (21) (6)
Goodwill and intangibles impairment -  -  -  -  -  -  -  -  - 
Other adjustments 1,172  1,108  1,051  985  1,324  (471) 2,674  2,161  1,442 
Adjusted EBITDA$13,402 $16,451 $18,437 $20,075 $16,624 $17,972 $22,302 $22,252 $9,588 


 (As Restated)                   
 Successor S&P Combined (non-GAAP) Successor 
(dollars in thousands)December 6, 2018
through
January 31,
2019
 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 
Consolidated                                 
Net income (loss) (6,152) (28,727) (24,419) 7,318  6,850  (3,137) (55,714) 247  (2,648)$(12,290)$(10,853)
Interest expense, net 5,592  7,236  9,318  9,843  10,127  9,503  8,765  8,364  7,777  6,900  6,029 
Income tax expense (benefit) (2,765) (6,957) 1,572  (1,922) (188) (1,147) (2,221) (462) (1,147) (2,648) 170 
Depreciation and amortization 8,374  11,087  12,132  16,477  15,669  15,085  15,076  14,665  16,827  13,838  14,007 
EBITDA 5,049  (17,361) (1,397) 31,716  32,458  20,304  (34,094) 22,814  20,809  5,800  9,353 
Transaction expenses -  14,167  1,282  176  63  -  -  -  -  29  55 
Loss on debt extinguishment -  16,395  -  -  -  -  -  -  -  15,510  - 
Stock based compensation -  -  361  1,625  1,633  1,467  1,383  1,357  7,247  672  3,350 
Change in fair value of warrant liabilities 2,522  2,522  14,774  (4,556) (6,249) 391  (3,254) 2,734  391  -  11,456 
Other expense (income) (11) (17) (20) (28) 12  (69) (33) (36) (31) (26) (26)
Goodwill and intangibles impairment -  -  -  -  -  -  57,944  -  -  -  - 
Other adjustments -  1,442  3,234  1,627  1,635  1,741  1,569  3,169  1,498  373  859 
Adjusted EBITDA$7,560 $17,148 $18,234 $30,560 $29,552 $23,834 $23,515 $30,038 $29,914 $22,358 $25,047 
                                  

Note: The Company restated/revised its 2019/2020 financial statements. Further details discussed above.

Concrete Pumping Holdings, Inc.
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

  Three Months Ended  Six Months Ended 
(dollars in thousands) April 30, 2021  April 30, 2020  April 30, 2021  April 30, 2020 
Consolidated                
Net income (loss) $(10,853) $(55,714) $(23,143) $(58,850)
Interest expense, net  6,029   8,765   12,929   18,268 
Income tax expense (benefit)  170   (2,221)  (2,478)  (3,368)
Depreciation and amortization  14,007   15,076   27,844   30,162 
EBITDA  9,353   (34,094)  15,152   (13,788)
Transaction expenses  55   -   84   - 
Loss on debt extinguishment  -   -   15,510   - 
Stock based compensation  3,350   1,383   4,022   2,850 
Change in fair value of warrant liabilities  11,456   (3,254)  11,456   (2,864)
Other expense (income)  (26)  (33)  (52)  (103)
Goodwill and intangibles impairment  -   57,944   -   57,944 
Other adjustments  859   1,569   1,233   3,308 
Adjusted EBITDA $25,047  $23,515  $47,405  $47,347 
                 
U.S. Concrete Pumping                
Net income (loss) $(925) $(44,303) $(13,602) $(46,790)
Interest expense, net  5,247   8,096   11,370   16,828 
Income tax expense (benefit)  (381)  (2,751)  (3,204)  (4,138)
Depreciation and amortization  9,405   10,144   18,677   20,148 
EBITDA  13,346   (28,814)  13,241   (13,952)
Transaction expenses  55   -   84   - 
Loss on debt extinguishment  -   -   15,510   - 
Stock based compensation  3,350   1,383   4,022   2,850 
Other expense (income)  (12)  (7)  (24)  (17)
Goodwill and intangibles impairment  -   43,500   -   43,500 
Other adjustments  (433)  257   (1,241)  785 
Adjusted EBITDA $16,306  $16,319  $31,592  $33,166 
                 
U.K. Operations                
Net income (loss) $402  $(15,955) $(129) $(16,848)
Interest expense, net  782   669   1,559   1,440 
Income tax expense (benefit)  79   509   (98)  394 
Depreciation and amortization  2,071   2,065   4,081   4,261 
EBITDA  3,334   (12,712)  5,413   (10,753)
Transaction expenses  -   -   -   - 
Loss on debt extinguishment  -   -   -   - 
Stock based compensation  -   -   -   - 
Other expense (income)  (12)  (26)  (26)  (86)
Goodwill and intangibles impairment  -   14,444   -   14,444 
Other adjustments  792   810   1,474   1,522 
Adjusted EBITDA $4,114  $2,516  $6,861  $5,127 
                 
U.S. Concrete Waste Management Services                
Net income (loss) $833  $859  $1,450  $1,225 
Interest expense, net  -   -   -   - 
Income tax expense (benefit)  348   34   584   239 
Depreciation and amortization  2,323   2,660   4,670   5,339 
EBITDA  3,504   3,553   6,704   6,803 
Transaction expenses  -   -   -   - 
Loss on debt extinguishment  -   -   -   - 
Stock based compensation  -   -   -   - 
Other expense (income)  (2)  -   (2)  - 
Goodwill and intangibles impairment  -   -   -   - 
Other adjustments  500   502   1,000   1,001 
Adjusted EBITDA $4,002  $4,055  $7,702  $7,804 
                 
Corporate                
Net income (loss) $(11,163) $3,685  $(10,862) $3,563 
Interest expense, net  -   -   -   - 
Income tax expense (benefit)  124   (13)  240   137 
Depreciation and amortization  208   207   416   414 
EBITDA  (10,831)  3,879   (10,206)  4,114 
Transaction expenses  -   -   -   - 
Loss on debt extinguishment  -   -   -   - 
Stock based compensation  -   -   -   - 
Change in fair value of warrant liabilities  11,456   (3,254)  11,456   (2,864)
Other expense (income)  -   -   -   - 
Goodwill and intangibles impairment  -   -   -   - 
Other adjustments  -   -   -   - 
Adjusted EBITDA $625  $625  $1,250  $1,250 
                 

Note: The Company revised its 2020 financial statements. Further details discussed above.

Concrete Pumping Holdings, Inc.
Reconciliation of Free Cash Flow

  Six Months Ended 
(dollars in millions) April 30, 2021 
Adjusted EBITDA $47.4 
Less net capital expenditures  (13.0)
Less cash paid for interest  (5.9)
Free cash flow $28.5 
     

Concrete Pumping Holdings, Inc.
Reconciliation of Net Debt

(in thousands) January 31,
2020
  April 30,
2020
  July 31,
2020
  October 31,
2020
  January 31,
2021
  April 30, 
2021
  Change in Net
Debt Q1'21 to Q2'21
 
Term loan outstanding  396,871   391,650   386,427   381,205   -   -   - 
Senior Notes  -   -   -   -   375,000   375,000   - 
Revolving loan draws outstanding  38,661   39,211   12,990   1,741   7,687   1,087   (6,600)
Less: Cash  (2,636)  (18,048)  (4,131)  (6,736)  (2,273)  (13,714)  (11,441)
Net debt  432,896   412,813   395,286   376,210   380,414   362,373   (18,041)
                             

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