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Centuri Holdings, Inc.(CTRI) - 2024 Q2 - Quarterly Results
CTRICenturi Holdings, Inc.(CTRI)2024-07-29 12:05

Financial Performance - Centuri reported Q2 2024 revenue of 672.1million,adecreaseof672.1 million, a decrease of 133.7 million or 16.6% compared to Q2 2023[3]. - Net income attributable to common stock was 11.7million,withdilutedearningspershareof11.7 million, with diluted earnings per share of 0.14; adjusted net income was 17.0million,oradjusteddilutedearningspershareof17.0 million, or adjusted diluted earnings per share of 0.20[3]. - Adjusted EBITDA for Q2 2024 was 68.6million,withanadjustedEBITDAmarginof10.268.6 million, with an adjusted EBITDA margin of 10.2%[3]. - Full year 2024 revenue guidance is projected between 2.5 billion and 2.7billion,withanadjustedEBITDAmarginof9.02.7 billion, with an adjusted EBITDA margin of 9.0% to 9.6%[7]. - Adjusted EBITDA for the fiscal three months ended June 30, 2024, was 68.6 million, down from 92.9millioninthesameperiodoftheprioryear[28].−FreeCashFlowforthefiscalthreemonthsendedJune30,2024,was92.9 million in the same period of the prior year[28]. - Free Cash Flow for the fiscal three months ended June 30, 2024, was 48.6 million, compared to 64.4millioninthesameperiodoftheprioryear[29].−FreeCashFlowConversionwas70.864.4 million in the same period of the prior year[29]. - Free Cash Flow Conversion was 70.8% for the fiscal three months ended June 30, 2024, compared to 69.3% in the same period of the prior year[29]. - Adjusted Net Income for the fiscal three months ended June 30, 2024, was 16.99 million, compared to 25.02millioninthesameperiodoftheprioryear[30].−TotalrevenueforthefiscalthreemonthsendedJune30,2024,was25.02 million in the same period of the prior year[30]. - Total revenue for the fiscal three months ended June 30, 2024, was 672,075,000, a decrease of 16.5% compared to 805,779,000forthesameperiodin2023[33].−AdjusteddilutedearningspershareforthefiscalthreemonthsendedJune30,2024,was805,779,000 for the same period in 2023[33]. - Adjusted diluted earnings per share for the fiscal three months ended June 30, 2024, was 0.20, down from 0.35inthesameperiodlastyear,representingadeclineof42.90.35 in the same period last year, representing a decline of 42.9%[31]. - Net income for the fiscal three months ended June 30, 2024, was 11,697,000, compared to 18,527,000forthesameperiodin2023,adecreaseof36.818,527,000 for the same period in 2023, a decrease of 36.8%[33]. - Gross profit for the fiscal three months ended June 30, 2024, was 60,504,000, down 32.8% from 89,972,000inthesameperiodlastyear[33].−OperatingincomeforthefiscalthreemonthsendedJune30,2024,was89,972,000 in the same period last year[33]. - Operating income for the fiscal three months ended June 30, 2024, was 33,145,000, a decrease of 37.7% compared to 53,202,000inthesameperiodlastyear[33].SegmentPerformance−TheU.S.Gassegmentrevenuedecreasedby53,202,000 in the same period last year[33]. Segment Performance - The U.S. Gas segment revenue decreased by 51.2 million, or 13.1%, to 340.7millioncomparedtotheprioryear[8].−TheCanadianGassegmentrevenuedecreasedby340.7 million compared to the prior year[8]. - The Canadian Gas segment revenue decreased by 7.1 million, or 14.8%, totaling 41.0million,whilegrossprofitincreasedto22.841.0 million, while gross profit increased to 22.8%[9]. - The Union Electric segment revenue decreased by 54.0 million, or 24.8%, to 164.2million,primarilyduetoadeclineinoffshorewindrevenue[10].−RevenuefromtheUnionElectricsegmenttotaled164.2 million, primarily due to a decline in offshore wind revenue[10]. - Revenue from the Union Electric segment totaled 328.1 million, a decrease of 95.8million,or22.695.8 million, or 22.6%, compared to the prior year period[14]. - Revenue from the Non-Union Electric segment totaled 217.1 million, reflecting a decrease of 53.0million,or19.653.0 million, or 19.6%, compared to the prior year period[15]. - Gross profit as a percentage of revenue decreased to 7.1% for the Union Electric segment and 8.8% for the Non-Union Electric segment, down from 7.6% and 14.5% respectively in the prior year[14][15]. Strategic Initiatives - The company secured multi-year customer awards with an estimated revenue potential exceeding 400 million, resulting in a backlog of 4.7billionattheendofQ22024[3].−Costreductioninitiativesareexpectedtogenerateapproximately4.7 billion at the end of Q2 2024[3]. - Cost reduction initiatives are expected to generate approximately 29 million in annualized savings starting in 2025[3]. - The company expects annual savings of 29millionfromitsreviewofcorporateandoperatingcompanyoverhead[18].−Thecompanyiswellpositionedtoimplementcost−focusedinitiativeswhilegrowingthebusinessundertheleadershipoftheincomingInterimCEO[18].LeadershipChanges−ThecompanyinitiatedanationalsearchforapermanentCEOfollowingtheresignationofBillFehrman,withPaulCaudillappointedasInterimPresidentandCEO[3][4].CashFlowandAssets−Thecompanyreportedanetcashusedinoperatingactivitiesof29 million from its review of corporate and operating company overhead[18]. - The company is well positioned to implement cost-focused initiatives while growing the business under the leadership of the incoming Interim CEO[18]. Leadership Changes - The company initiated a national search for a permanent CEO following the resignation of Bill Fehrman, with Paul Caudill appointed as Interim President and CEO[3][4]. Cash Flow and Assets - The company reported a net cash used in operating activities of 76,411,000 for the fiscal six months ended June 30, 2024, compared to 19,487,000forthesameperiodin2023[37].−TotalassetsasofJune30,2024,were19,487,000 for the same period in 2023[37]. - Total assets as of June 30, 2024, were 2,221,620,000, an increase from 2,189,908,000asofDecember31,2023[35].−Currentliabilitiesdecreasedto2,189,908,000 as of December 31, 2023[35]. - Current liabilities decreased to 353,534,000 as of June 30, 2024, from 420,612,000asofDecember31,2023,areductionof16420,612,000 as of December 31, 2023, a reduction of 16%[35]. - Cash and cash equivalents at the end of the period were 30,919,000, down from 33,407,000atthebeginningoftheperiod[37].−Thecompanyraised33,407,000 at the beginning of the period[37]. - The company raised 330,343,000 from its initial public offering and private placement, net of offering costs paid[37].