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crete Pumping (BBCP) - 2022 Q4 - Annual Report

Revenue Growth - For the twelve months ended October 31, 2022, the company's revenue increased by 27.1%, reaching 401.3millioncomparedto401.3 million compared to 315.8 million in the previous year[144]. - The U.S. Concrete Pumping segment revenue grew by 29.2%, or 67.0million,from67.0 million, from 229.5 million in the prior year to 296.5millioninfiscal2022[148].TheU.K.Operationssegmentrevenueincreasedby14.2296.5 million in fiscal 2022[148]. - The U.K. Operations segment revenue increased by 14.2%, or 6.8 million, from 48.1millionto48.1 million to 54.9 million, with a 24.7% increase when excluding foreign currency translation[149]. - The U.S. Concrete Waste Management Services segment saw a revenue improvement of 30.1%, or 11.6million,from11.6 million, from 38.6 million to 50.2million[150].ProfitabilityGrossprofitforthefiscalyear2022was50.2 million[150]. Profitability - Gross profit for the fiscal year 2022 was 163.6 million, an increase of 25.9millionfrom25.9 million from 137.7 million in fiscal 2021, although gross margin declined by 280 basis points to 40.8%[144]. - The company reported a net income of 28.7millionforthefiscalyear2022,comparedtoanetlossof28.7 million for the fiscal year 2022, compared to a net loss of 15.1 million in the previous year[145]. - The gross margin for the twelve months ended October 31, 2022, was 40.8%, down from 43.6% for the previous twelve months, primarily due to significant inflation in input costs[152]. - Adjusted EBITDA for the year ended October 31, 2022 was 118.6million,comparedto118.6 million, compared to 104.3 million for the previous year[187]. - EBITDA for the year ended October 31, 2022 was 117.6million,upfrom117.6 million, up from 68.7 million in the previous year[187]. Expenses and Costs - General and Administrative (G&A) expenses for the twelve months ended October 31, 2022, were 113.2million,anincreaseof113.2 million, an increase of 13.8 million from 99.4 million in the previous year, with G&A expenses as a percentage of revenue decreasing to 28.2% from 31.5%[153]. - Rising fuel prices reduced gross profit by approximately 10.1 million and gross margin by about 2.5% since October 31, 2021[138]. - Interest expense, net for the year ended October 31, 2022, was 25.9million,anincreaseof25.9 million, an increase of 0.7 million from the same period a year ago[158]. Assets and Liquidity - Total assets increased from 792.7millionasofOctober31,2021,to792.7 million as of October 31, 2021, to 887.5 million as of October 31, 2022, primarily due to growth in the U.S. Concrete Pumping segment[146]. - As of October 31, 2022, the company had 7.5millionincashandcashequivalentsand7.5 million in cash and cash equivalents and 103.7 million of available borrowing capacity under the ABL Facility, totaling 111.2millioninavailableliquidity[167].TheoutstandingbalanceundertheABLFacilityasofOctober31,2022was111.2 million in available liquidity[167]. - The outstanding balance under the ABL Facility as of October 31, 2022 was 52.1 million, with the Company in compliance with all debt covenants[179]. Strategic Acquisitions - The company executed strategic acquisitions, including Hi-Tech for 12.3million,Pioneerfor12.3 million, Pioneer for 20.2 million, and Coastal for 30.8million,enhancingitsmarketpresence[133].TheCompanyused30.8 million, enhancing its market presence[133]. - The Company used 124.1 million for investing activities during the twelve months ended October 31, 2022, including 101.9millionforproperty,plant,andequipmentand101.9 million for property, plant, and equipment and 30.8 million for the acquisition of Coastal[183]. Market Outlook - The company anticipates fluctuations in residential end market volumes due to macroeconomic factors, while commercial and infrastructure markets may continue to show strong demand[139]. Tax and Fair Value - The company recorded an income tax expense of 5.5milliononapretaxincomeof5.5 million on a pretax income of 34.2 million for the twelve months ended October 31, 2022[159]. - The company recognized a 9.9milliongainonthefairvalueremeasurementofliabilityclassifiedwarrantsfortheyearendedOctober31,2022,comparedtoa9.9 million gain on the fair value remeasurement of liability-classified warrants for the year ended October 31, 2022, compared to a 9.9 million expense in the previous year[156]. - The fair value of U.S. Concrete Waste Management Services exceeded its carrying value by 82% as of August 31, 2022[200]. - The fair value of U.K. Operations exceeded its carrying value by 32% as of the same date[200]. - The U.S. Concrete Pumping reporting unit had goodwill of $147.5 million, with its fair value approximately 7% greater than its carrying value[201]. - Management's projections included terminal growth rates of 3.0% and discount rates ranging from 10.0% to 11.3%[200]. - The company applies ASC 805 principles for business combinations, recording assets at fair value and recognizing goodwill when applicable[202]. - Fair value determinations require significant estimates and assumptions, impacting reported depreciation, amortization, and income tax expenses[203].