LEGATO(LGTO) - 2025 Q1 - Quarterly Report

Financial Performance - Revenue for Q1 2025 was $239,486,000, a decrease of 16.9$288,097,000 in Q1 2024[18] - Gross profit increased to $21,480,000, up 5.2$20,421,000 in the same period last year[18] - Net loss attributable to Southland Stockholders was $4,552,000, compared to a loss of$406,000 in Q1 2024[18] - Basic net loss per share attributable to common stockholders was $(0.08), compared to$(0.01) in Q1 2024[18] - Comprehensive loss attributable to Southland Stockholders was $4,881,000, compared to a loss of$778,000 in Q1 2024[19] - For the three months ended March 31, 2025, Southland Holdings reported a net loss of $2.786 million compared to a net income of$0.525 million for the same period in 2024[25] - EBITDA for Q1 2025 was $10.08 million, down from$10.95 million in Q1 2024[169] - Basic and diluted net loss per share for the three months ended March 31, 2025, is $(0.08), compared to$(0.01) for the same period in 2024[130] Assets and Liabilities - Total current assets as of March 31, 2025, were $884,954,000, slightly up from$881,652,000 as of December 31, 2024[17] - Total liabilities increased to $1,030,271,000 from$1,028,240,000 at the end of 2024[17] - Cash and cash equivalents decreased to $65,052,000 from$72,185,000 at the end of 2024[17] - Total stockholders' equity decreased to $159,130,000 from$163,658,000 as of December 31, 2024[17] - Long-term debt as of March 31, 2025, was $241,309,000, down from$255,625,000 as of December 31, 2024[79] - Total debt as of March 31, 2025, was $288.1 million, with$46.8 million due within the next twelve months[179] Revenue Segmentation - Civil segment revenue increased to $102.916 million, accounting for 43.0$84.273 million or 29.3% in the prior year[76] - Transportation segment revenue decreased to $136.570 million, representing 57.0$203.824 million or 70.7% in the same period of 2024[76] - Revenue earned outside of the United States was 15% for the three months ended March 31, 2025, down from 26% in the same period of 2024[78] Costs and Expenses - Total cost of construction for the three months ended March 31, 2025, was $218.006 million, down from$267.676 million in the same period of 2024, a decrease of approximately 18.5%[77] - Selling, general, and administrative expenses for the three months ended March 31, 2025, were $16.5 million, an increase of$2.1 million, or 14.4%, compared to the same period in 2024[155] - Interest expense for the three months ended March 31, 2025, was $8.9 million, an increase of$3.2 million, or 56.9%, compared to the same period in 2024[156] Cash Flow - Net cash provided by operating activities was $6.429 million, a significant improvement from a net cash used of$9.897 million in the prior year[25] - Total cash, cash equivalents, and restricted cash at the end of the period was $81.116 million, down from$87.561 million at the beginning of the period[43] Contractual Obligations - As of March 31, 2025, the Company has $2.5 billion in Remaining Unsatisfied Performance Obligations (RUPO), expecting to recognize approximately 40$493.9 million, with costs incurred on uncompleted contracts amounting to $7.7 billion[115] - The Company recorded$487.3 million related to Unresolved Contract Modifications as of March 31, 2025[116] Backlog and Future Outlook - Total contract backlog as of March 31, 2025, was $2.47 billion, down from$2.57 billion at the end of 2024[170] - Civil segment backlog increased to $976.34 million as of March 31, 2025, from$961.21 million at the end of 2024[171] - Transportation segment backlog decreased to $1.49 billion as of March 31, 2025, from$1.61 billion at the end of 2024[171] - The company anticipates further spending on infrastructure related to economic stimulus initiatives, including the Infrastructure Investment and Jobs Act passed in 2021[141] - The company has identified new opportunities in both the Civil and Transportation segments, with a positive outlook for future projects despite existing risks and uncertainties[138] Compliance and Governance - The Company was in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[188] - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended March 31, 2025[197] - The Company’s management confirmed the effectiveness of disclosure controls and procedures as of the end of the reporting period[196] - No additional risk factors were identified, and there were no material changes to previously disclosed risk factors as of the fiscal year ended December 31, 2024[201]