Limbach(LMB) - 2024 Q4 - Annual Report

Pension Contributions and Obligations - The company contributed approximately $10.3 million to multiemployer pension plans for the year ended December 31, 2024, compared to$ 11.6 million in 2023 and $12.6 million in 2022, indicating a decreasing trend in contributions [140] - Approximately 45% of the company's current employees are members of collective bargaining units, which may impact future pension obligations [140] - The company faces potential increased expenses and liabilities due to underfunded multiemployer pension plans, which could require additional contributions [141] Operational Costs and Challenges - Rising healthcare costs have steadily increased, potentially adversely affecting the company's financial results [143] - The company may experience increased operational costs and reduced efficiency due to challenging work environments, including difficult terrain and hazardous conditions [144] - The company is susceptible to adverse weather conditions, which may harm business operations and financial results [161] - The company may face increased costs and operational disruptions due to compliance with evolving immigration laws and labor regulations [170] Climate Change and Regulatory Risks - Future climate change could disrupt operations and negatively affect revenue and profitability due to extreme weather events and regulatory changes [146] - The company is subject to evolving climate-related regulations, which could increase compliance costs and operational complexity [149] - The current presidential administration's regulatory approach may alter the landscape for climate-related regulations, impacting the company's operations and costs [156] Environmental, Social, and Governance (ESG) Concerns - Investor and customer scrutiny regarding environmental, social, and governance (ESG) practices is increasing, potentially imposing additional costs and reputational risks [157] - The company may face unfavorable ESG ratings from third-party organizations, which could negatively influence investor sentiment and stock price [159] Financial Position and Investments - As of March 6, 2025, the company had 11,353,379 shares of common stock outstanding, with 1,074,684 shares held by current directors and officers [175] - The company has not declared any dividends on its common stock to date and does not anticipate doing so in the foreseeable future [179] - The company had$ 10.0 million of direct borrowings outstanding under its Second A&R Wintrust Revolving Loan as of December 31, 2024 [327] - The company has an interest rate swap arrangement with a notional value of $10.0 million, maturing in July 2027, to manage risks associated with variable-rate long-term debt [327] - Cash equivalents as of December 31, 2024, were$ 43.0 million, consisting of overnight repurchase agreements and money market fund investments [328] - The company recognized interest income of approximately $2.2 million for the year ended December 31, 2024 [328] - The company maintains a conservative investment policy and has not experienced any losses in its cash and cash equivalents [328] Internal Controls and Compliance - The company plans to continue strengthening internal controls and procedures to enhance the effectiveness of its financial reporting [183] - Any failure in disclosure controls or internal controls could harm the company's financial condition and results of operations [184] Legal and Tax Risks - The company may face claims and lawsuits that could reduce profitability and liquidity, impacting financial condition [185] - Changes in tax laws or regulations could increase the company's tax burden and adversely affect financial position and cash flows [189] - Changes in tax laws and regulations could materially impact the company's provision for income taxes and financial condition [172] Cybersecurity and Technology Risks - The company faces risks related to cybersecurity, including potential breaches that could lead to financial losses and reputational damage [163] - The company relies on third-party software and infrastructure for critical operations, and disruptions could adversely affect financial results [165] - The development and deployment of artificial intelligence technologies may require additional investment and could introduce new risks [164] Market Risks - The company is exposed to market risk through changes in interest rates, primarily related to borrowings not covered by its interest rate swap [327]