crete Pumping (US:BBCP)2022-09-07 16:00Financial Performance - For the three months ended July 31, 2022, the company reported a net income of $14.5 million, a significant increase from $4.6 million in the same period last year, driven by a 29.4% year-over-year revenue increase due to acquisitions and organic growth [155]. - For the nine months ended July 31, 2022, net income was $21.7 million, compared to a net loss of $18.5 million in the same period last year, attributed to a 25.6% year-over-year revenue increase and a $21.1 million favorable change in fair value of warrant liabilities [156]. - Revenue for the three months ended July 31, 2022, was $104.5 million, compared to $80.8 million for the same period in 2021, reflecting strong growth [154]. - Total revenue for the three months ended July 31, 2022, was $104.5 million, an increase of 29.3% from $80.8 million for the same period in 2021 [159]. - U.S. Concrete Pumping reported a net income of $4,332,000 in 2022, up from $1,844,000 in 2021, representing a 134% increase [195]. - U.K. Operations achieved a net income of $441,000 in 2022, an increase from $384,000 in 2021, marking a 14.8% rise [196]. - U.S. Concrete Waste Management Services reported a net income of $2,010,000 in 2022, up from $1,832,000 in 2021, which is a 9.7% increase [197]. - Corporate net income reached $7,713,000 in 2022, significantly higher than $578,000 in 2021, representing a substantial increase of 1,333% [198]. Revenue Growth - U.S. Concrete Pumping revenue increased by 33.3%, or $19.3 million, from the fiscal 2021 third quarter to the fiscal 2022 third quarter [161]. - U.K. Operations revenue increased by 14.0%, or $1.8 million, year-over-year, with a 28.4% increase when excluding foreign currency translation [162]. - U.S. Concrete Waste Management Services revenue increased by 26.6%, or $2.7 million, from the fiscal 2021 third quarter to the fiscal 2022 third quarter [163]. Expenses and Margins - Gross profit for the three months ended July 31, 2022, was $43.3 million, with a gross margin of 41.5%, down from 46.1% in the same period last year [154]. - Gross margin for the fiscal 2022 third quarter declined to 41.5%, down 460 basis points from 46.1% in the fiscal 2021 third quarter [165]. - General and Administrative (G&A) expenses for the fiscal 2022 third quarter were $27.2 million, up from $25.0 million in the fiscal 2021 third quarter [166]. Adjusted EBITDA - Adjusted EBITDA for U.S. Concrete Pumping was $22.4 million for the three months ended July 31, 2022, up 21.6% from $18.4 million for the same period in fiscal 2021 [174]. - Adjusted EBITDA for U.S. Concrete Waste Management Services was $5.7 million for the three months ended July 31, 2022, up 6.5% from $5.3 million for the same period in fiscal 2021 [176]. - Adjusted EBITDA for the nine months ended July 31, 2022, was $84.288 million, compared to $75.857 million for the same period in 2021, reflecting a year-over-year increase [194]. - Adjusted EBITDA for U.K. Operations was $3,955,000 in 2022, slightly down from $4,087,000 in 2021, indicating a decrease of 3.2% [196]. - Adjusted EBITDA for U.S. Concrete Waste Management Services was $5,681,000 in 2022, compared to $5,334,000 in 2021, showing an increase of 6.5% [197]. Assets and Liquidity - Total assets increased from $792.7 million as of October 31, 2021, to $824.5 million as of July 31, 2022, primarily due to the acquisition of Pioneer [157]. - As of July 31, 2022, the company had $2.4 million in cash and cash equivalents and $131.7 million in available borrowing capacity under the ABL Facility, totaling $134.1 million in available liquidity [178]. - The outstanding principal amount of Senior Notes was $375.0 million as of July 31, 2022, with a maturity date of February 1, 2026, and an interest rate of 6.000% per annum [181]. - The company had an outstanding balance under the ABL Facility of $16.9 million as of July 31, 2022, and was in compliance with all debt covenants [185]. - The ABL Facility was amended on July 29, 2022, increasing maximum revolver borrowings from $125.0 million to $160.0 million [181]. - The company believes existing cash, cash flow from operations, and borrowing capacity will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months [180]. Strategic Acquisitions - The company has executed several strategic acquisitions to enhance its market presence, including the acquisition of Pioneer for $20.2 million and Hi-Tech for $12.3 million [146]. Operational Challenges - Rising fuel costs and inflation have materially impacted the company's results, prompting adjustments in service rates [152]. Compliance and Controls - The company plans to adopt and comply with accounting standards for non-emerging growth companies starting from the fiscal 2022-10-K filing [200]. - The company evaluates goodwill for impairment annually, with the last assessment conducted on August 31, 2022, to ensure compliance with ASC Topic 350 [202]. - As of July 31, 2022, the company's disclosure controls and procedures were deemed effective by the CEO and CFO, ensuring timely reporting as per SEC rules [210]. - No changes in internal control over financial reporting were identified during the fiscal quarter ended July 31, 2022, that materially affected the company's reporting [211]. - The company is not currently involved in any material legal proceedings that could adversely affect its business or financial condition [213].