Concrete Pumping Holdings Reports 46% Decline in Q2 Net Income

Concrete Pumping Holdings, Inc. has reported its financial results for the second quarter of fiscal year 2024, ending April 30, 2024. Here are the key figures and changes compared to the second quarter of fiscal year 2023:

  • Revenue: $107.1 million compared to $107.8 million, a marginal decrease of 0.7%.
  • Gross profit: $41.8 million compared to $43.5 million, a decrease of 4%.
  • Income from operations: $12.1 million compared to $13.2 million, down 8%.
  • Net income: $3.0 million compared to $5.6 million, a decline of 46%.
  • Net income attributable to common shareholders: $2.6 million, or $0.05 per diluted share, compared to $5.2 million, or $0.09 per diluted share, a decrease of 50%.
  • Adjusted EBITDA: $27.5 million compared to $28.8 million, representing a 4.5% decrease.
  • Net debt: $373.5 million compared to $100.4 million in the second quarter of fiscal year 2023.

In terms of segment results: U.S. concrete pumping segment revenue decreased by 5% to $74.6 million. U.K. operations revenue increased by 2% to $15.5 million. * U.S. concrete waste management services revenue grew by 19% to $16.9 million.

The company's CEO, Bruce Young, highlighted the challenges faced in the commercial construction sector due to rising interest rates, oversaturation of concrete pumps, and above-average rainfall in certain markets. However, he expressed optimism for the remainder of the year, citing the company's diversified business model and its ability to maintain free cash flow and target leverage ratio.

Looking ahead, Concrete Pumping Holdings expects fiscal year 2024 revenue to range between $455.0 million to $465.0 million and adjusted EBITDA to range between $120.0 million to $125.0 million, while maintaining its outlook for free cash flow of at least $75.0 million.

These results and outlook reflect the company's ability to navigate challenging market conditions and capitalize on growth opportunities within its segments, despite the headwinds faced in the commercial construction sector. Today the company's shares have moved 0.7% to a price of $7.53. For more information, read the company's full 8-K submission here.

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