LEGATO(LGTO) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue for the quarter ended September 30, 2024, was $173.3 million, a decrease of$139.2 million, or 44.5%, compared to $312.5 million for the same quarter in 2023[5] - Gross loss for the quarter ended September 30, 2024, was$51.1 million, compared to a gross profit of $29.5 million for the same quarter in 2023, resulting in a gross margin decrease from 9.5$54.7 million, or $(1.14) per share, compared to a net income of$3.8 million, or $0.08 per share, for the same quarter in 2023[5] - EBITDA for the quarter ended September 30, 2024, was$(58.7) million, compared to $22.3 million for the same quarter in 2023[5] - For the nine months ended September 30, 2024, revenue was$712.9 million, a decrease of $131.3 million, or 15.6$844.2 million for the same period in 2023[11] - Gross loss for the nine months ended September 30, 2024, was $70.7 million, compared to a gross profit of$14.7 million for the same period in 2023, with a gross margin decrease from 1.7% to (9.9)%[12] - Net loss attributable to stockholders for the nine months ended September 30, 2024, was $101.2 million, or$(2.11) per share, compared to a net loss of $13.7 million, or$(0.29) per share, for the same period in 2023[10] - The company reported a net loss of $102,959 thousand for the nine months ended September 30, 2024, compared to a loss of$11,376 thousand for the same period in 2023[23] Expenses and Liabilities - Selling, general, and administrative expenses for the quarter ended September 30, 2024, were $17.5 million, an increase of$2.2 million, or 14.7%, compared to the same quarter in 2023[8] - The total liabilities as of September 30, 2024, were $1,028,760 thousand, compared to$940,504 thousand as of December 31, 2023[21] - Cash paid for interest was $18.886 million, compared to$12.704 million[24] - Lease assets obtained in exchange for new leases totaled $9.881 million, up from$8.529 million[24] - Related party payables changed for notes payable amounted to $3.797 million[24] - No dividends were financed with notes payable, remaining at$0[24] Cash Flow and Assets - Total current assets as of September 30, 2024, were $883,922 thousand, a decrease from$942,536 thousand as of December 31, 2023[21] - Cash and cash equivalents increased to $91,378 thousand as of September 30, 2024, from$49,176 thousand as of December 31, 2023[21] - The net cash provided by operating activities for the nine months ended September 30, 2024, was $12,242 thousand, compared to net cash used of$(36,588) thousand for the same period in 2023[23] - The company had a net cash increase of $42,928 thousand for the nine months ended September 30, 2024, compared to a decrease of$(25,239) thousand for the same period in 2023[23] - The total stockholders' equity decreased to $149,064 thousand as of September 30, 2024, from$249,622 thousand as of December 31, 2023[21] Business Overview - Southland is a leading provider of specialized infrastructure construction services, with a history dating back to 1900[26] - The company operates in various sectors including bridges, tunneling, communications, and water treatment[26] Forward-Looking Statements - Southland's non-GAAP financial measures provide insights into financial trends and should not be considered in isolation[28] - Forward-looking statements are subject to uncertainties and risks that may affect actual results[30] - The company has no obligation to publicly update any forward-looking statements made[31] - Southland's conference call is scheduled for November 13, 2024, at 10:00 a.m. Eastern Time[25] Impact of Specific Business Segments - The Materials & Paving business negatively impacted gross loss by $18.3 million for the quarter and$75.4 million for the nine months ended September 30, 2024[7][12] Adjusted Financial Metrics - The adjusted net loss attributable to common stockholders for the nine months ended September 30, 2024, was $101,210 thousand, compared to a loss of$33,096 thousand for the same period in 2023[18] - The diluted income (loss) per share attributable to common stock for the three months ended September 30, 2024, was $(1.14), compared to$0.08 for the same period in 2023[18] - For the three months ended September 30, 2024, the net loss attributable to common stock was $54,727 thousand, compared to a net income of$3,800 thousand for the same period in 2023[18]