crete Pumping (US:BBCP)2021-03-12 04:05Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $70.4 million, down from $73.9 million in Q1 2020, primarily due to COVID-19 impacts [13] - Gross profit decreased to $29.9 million from $32.1 million, with gross margin at 42.4% compared to 43.5% [15] - Net loss available to common shareholders was $12.8 million or $0.24 per diluted share, compared to a net loss of $3.2 million or $0.06 per diluted share in the same quarter last year [17] - Adjusted EBITDA was $22.4 million, down from $23.8 million, with an adjusted EBITDA margin of 31.7% compared to 32.2% [17] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping revenue was $52.3 million, down from $55.1 million, with modest organic growth offset by COVID-19 headwinds [13] - U.K. operations generated $9.8 million in revenue, down from $10.7 million, but recovery is ongoing with 85% of pre-COVID revenue run rate [14] - U.S. Concrete Waste Management Services revenue increased 2% to $8.4 million compared to $8.3 million in the prior year [15] Market Data and Key Metrics Changes - The commercial business revenue share decreased from 57% to 50%, while residential increased from 30% to 34%, and infrastructure rose from 13% to 16% [9] - The U.K. market is recovering faster than the U.S., with a significant increase in revenue share from infrastructure projects [14] Company Strategy and Development Direction - The company aims to capture market share in a fragmented market, focusing on residential and infrastructure sectors [6] - Strategic debt restructuring has improved liquidity and flexibility, allowing for potential M&A opportunities [11][12] - The company plans to pursue accretive M&A opportunities to enhance market penetration and explore new markets [26] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term market share expansion and recovery to pre-COVID levels, particularly in residential and infrastructure markets [15][24] - The company expects continued strength in residential construction and infrastructure projects, despite challenges in commercial construction [24][25] - Management is closely monitoring the recovery pace in regions heavily impacted by the pandemic [23] Other Important Information - The company successfully closed a private offering of $375 million in senior secured second lien notes, enhancing its liquidity profile [19] - Total debt outstanding as of January 31, 2021, was $382.7 million, with liquidity of approximately $118.4 million, reflecting a 100% increase since the previous quarter [20] Q&A Session Summary Question: Guidance on EBITDA margins for fiscal '21 - Management expects improved margins in the second half of the year as markets recover [30] Question: Signs of inflation in the business - No significant inflation concerns were noted, with labor being the largest cost component [32] Question: Impact of winter storms in Texas - The company experienced a temporary shutdown but remains optimistic about Q2 outlook [62] Question: Seasonal pickup in U.S. and U.K. operations - Management anticipates a stronger market recovery as restrictions are lifted [36] Question: Eco-Pan growth and challenges - Growth has slowed due to difficulties in converting cleanup methods virtually, but optimism remains for future acceleration [38] Question: Infrastructure market momentum - The company has seen improvements in infrastructure revenues across all regions [56] Question: M&A activity and leverage targets - The company aims to maintain a long-term leverage target of 2.5x while pursuing M&A opportunities [58]