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Concrete Pumping Holdings Reports Strong Second Quarter 2023 Results
ソース: Nasdaq GlobeNewswire / 08 6 2023 16:05:00 America/New_York
DENVER, June 08, 2023 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for the second quarter ended April 30, 2023.
Second Quarter Fiscal Year 2023 Highlights vs. Second Quarter of Fiscal Year 2022 (where applicable)
- Revenue increased 12% to $107.8 million compared to $96.5 million.
- Gross profit increased 12% to $43.5 million compared to $38.9 million.
- Income from operations increased 27% to $13.2 million compared to $10.4 million.
- Net income was $5.6 million compared to $6.0 million.
- Net income attributable to common shareholders was $5.2 million or $0.09 per diluted share, compared to $5.6 million or $0.10 per diluted share.
- Adjusted EBITDA1 increased 7% to $28.8 million compared to $27.1 million, with Adjusted EBITDA margin1 at 26.7% compared to 28.0%.
- Amounts outstanding under debt agreements were $435.9 million with net debt1 of $429.3 million. Total available liquidity at quarter end was $100.4 million.
Management Commentary
“We delivered another strong quarter driven by continued growth in every segment, particularly double-digit increases in our U.K. operations and in Eco-Pan,” said CPH CEO Bruce Young. “In fact, Eco-Pan experienced another quarter of exceptional growth with a 26% increase in revenue as we continued to leverage the organic growth in our operations network and an expanded salesforce. Within our U.S. concrete pumping business, we continued to experience improvement in our commercial and infrastructure projects. However, above average precipitation and colder temperatures in most of our regions west of the Rockies, as well as Colorado, impacted sales as well as profitability given lower equipment utilization.
“Looking ahead, we anticipate ongoing growth in our infrastructure and commercial end markets given our expanded footprint and momentum with heavy commercial projects. Our focus remains on optimizing end market mix to continue to deliver strong top and bottom-line growth as we move into the peak summer construction season. We will also continue to focus on maximizing shareholder value by leveraging our unique operational capabilities, high-value service offering, and opportunistic, accretive M&A while strategically balancing our leverage. And, our ABL upsize this month to $225.0 million and five year extended maturity further enhances our ability to pursue accretive investment opportunities and support our overall long-term growth."
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1 Adjusted EBITDA, Adjusted EBITDA margin and net debt are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the non-GAAP financial measures used in this release and a reconciliation to their most comparable GAAP measures. As of the first quarter of fiscal 2023, adjusted EBITDA no longer includes an add-back for director costs and public company expenses.Second Quarter Fiscal Year 2023 Financial Results
Revenue in the second quarter of fiscal year 2023 increased 12% to $107.8 million compared to $96.5 million in the second quarter of fiscal year 2022. The increase was attributable to strong growth across each of the Company’s segments as a result of organic growth from some higher volumes in certain regions coupled with improved pricing, as well as the acquisition of Coastal Carolina Pumping (Coastal) in August 2022. Revenue attributable to the Coastal acquisition was $5.0 million in the second quarter of 2023.
Gross profit in the second quarter of fiscal year 2023 increased 12% to $43.5 million compared to $38.9 million in the prior year quarter. Gross margin was 40.3% compared to 40.4% in the prior year quarter. While there was stabilization of certain input costs, particularly in diesel fuel, this was offset by slightly lower equipment utilization as a result of inclement weather conditions affecting the fiscal 2023 second quarter, particularly in locations west of the Rocky Mountains.
General and administrative expenses in Q2 were $30.3 million, up $1.7 million from $28.6 million in the same year-ago quarter as a result of higher labor costs related to recent acquisitions. As a percentage of revenue, G&A costs were 28.1% in the second quarter compared to 29.6% in the same year-ago quarter.
During the three-month periods ended April 30, 2023 and 2022, the Company recognized gains of $1.2 million and $2.5 million, respectively, on the fair value remeasurement of its liability-classified warrants. The continued decline in the fair value remeasurement of the public warrants for both periods is due to the Company's share price being below the exercise price as the warrants get closer to expiring in December 2023.
Net income in the second quarter of fiscal year 2023 was $5.6 million compared to $6.0 million in the second quarter of fiscal year 2022. Net income attributable to common shareholders in the second quarter of fiscal year 2023 was $5.2 million, or $0.09 per diluted share, compared to $5.6 million, or $0.10 per diluted share, in the prior year quarter.
Adjusted EBITDA in the second quarter of fiscal year 2023 increased 7% to $28.8 million compared to $27.1 million in the prior year quarter. Adjusted EBITDA margin declined to 26.7% compared to 28.0% in the prior year quarter, primarily due to the severe winter weather impacts on operating leverage.
Liquidity
On April 30, 2023, the Company had debt outstanding of $435.9 million, net debt of $429.3 million and total available liquidity of $100.4 million.
On June 1, 2023, the Company amended and upsized its ABL Facility to, among other things, (1) increase the maximum revolver borrowings available to be drawn thereunder from $160.0 million to $225.0 million and (2) extend the maturity of the ABL Facility to June 1, 2028 (a five-year extension from closing). The $65.0 million in incremental commitments included the introduction of PNC Bank N.A. providing a new commitment of $50.0 million and JPMorgan Chase Bank, N.A. increasing their existing commitment by $15.0 million.
Segment Results
U.S. Concrete Pumping. Revenue in the second quarter of fiscal year 2023 increased 9% to $78.4 million compared to $71.8 million in the prior year quarter. The increase was primarily due to revenue contribution in the second quarter of 2023 from the Coastal acquisition. Net income in the second quarter of fiscal year 2023 was $0.5 million compared to $1.7 million in the prior year quarter. Adjusted EBITDA was $17.1 million in the second quarter of fiscal year 2023 compared to $18.0 million in the prior year quarter.
U.K. Operations. Revenue in the second quarter of fiscal year 2023 increased 13% to $15.2 million compared to $13.5 million in the prior year quarter. Excluding the impact from foreign currency translation, revenue was up 22% year-over-year. The increase was primarily attributable to pricing improvements. Net income in the second quarter of fiscal year 2023 improved to $0.9 million compared to $0.1 million in the prior year quarter. Adjusted EBITDA was $4.6 million in the second quarter of fiscal year 2023 compared to $3.8 million in the prior year quarter.
U.S. Concrete Waste Management Services. Revenue in the second quarter of fiscal year 2023 increased 26% to $14.2 million compared to $11.3 million in the prior year quarter. The increase was due to organic growth and pricing improvements. Net income in the second quarter of fiscal year 2023 increased 89% to $2.7 million compared to $1.4 million in the prior year quarter. Adjusted EBITDA in the second quarter of fiscal year 2023 increased 39% to $6.5 million compared to $4.6 million in the prior year quarter.
Fiscal Year 2023 Outlook
The Company continues to expect fiscal year 2023 revenue to range between $420.0 million to $445.0 million, Adjusted EBITDA to range between $125.0 million to $135.0 million, and free cash flow2 to range between $65.0 million and $75.0 million.
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2 Free cash flow is defined as Adjusted EBITDA less net replacement capital expenditures less cash paid for interest.Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2023 results.
Date: Thursday, June 8, 2023
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-877-407-9039
International dial-in number: 1-201-689-8470
Conference ID: 13737461Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.
The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1606786&tp_key=5a3a51cd75 and via the investor relations section of the Company’s website at www.concretepumpingholdings.com.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through June 15, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13737461About Concrete Pumping Holdings
Concrete Pumping Holdings is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan seeks to provide a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of April 30, 2023, the Company provided concrete pumping services in the U.S. from a footprint of approximately 100 branch locations across approximately 20 states, concrete pumping services in the U.K. from approximately 30 branch locations, and route-based concrete waste management services from 19 operating locations in the U.S. and 1 shared location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Company’s brand websites at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.
Forward‐Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “outlook” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance, including the Company's fiscal year 2023 outlook. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the adverse impact of recent inflationary pressures, global economic conditions and developments related to these conditions, such as fluctuations in fuel costs and the ongoing war in Ukraine and the COVID-19 pandemic, on our business; the outcome of any legal proceedings or demand letters that may be instituted against or sent to the Company or its subsidiaries; the ability of the Company to grow and manage growth profitably and retain its key employees; the ability to complete targeted acquisitions and to realize the expected benefits from completed acquisitions; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission, including the risk factors in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and Form 10-Q/A. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Non-GAAP Financial Measures
This press release presents Adjusted EBITDA, Adjusted EBITDA margin, net debt and free cash flow, all of which are important financial measures for the Company, but are not financial measures defined by GAAP.
Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management also uses this non-GAAP financial measure to compare the Company’s performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and annual financial reports prepared for the Company’s board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Company’s ongoing operating results and in comparing the Company’s financial results with competitors who also present similar non-GAAP financial measures.
Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, loss on debt extinguishment, stock-based compensation, other income, net, and other adjustments. Other adjustments includes the adjustment for warrant liabilities revaluation, extraordinary expenses and non-cash currency gains/losses. As of the first quarter of fiscal 2023, we have modified the method in which adjusted EBITDA is calculated by no longer including an add-back for director costs and public company expenses. Adjusted EBITDA in the three and six months ended April 30, 2022 is recast by $0.6 million and $1.3 million, respectively, for these expenses to reflect this change. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented. See below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP.
Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor the Company’s leverage and evaluate the Company’s consolidated balance sheet. See “Non-GAAP Measures (Reconciliation of Net Debt)” below for a reconciliation of Net Debt to amounts outstanding under debt agreements calculated in accordance with GAAP.
Free cash flow is defined as Adjusted EBITDA less net replacement capital expenditures and cash paid for interest. This measure is not a substitute for cash flow from operations and does not represent the residual cash flow available for discretionary expenditures, since certain non-discretionary expenditures, such as debt servicing payments, are not deducted from the measure. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor and evaluate the cash flow yield of the business.
The financial statement tables that accompany this press release include a reconciliation of Adjusted EBITDA and net debt to the applicable most comparable U.S. GAAP financial measure. However, the Company has not reconciled the forward-looking Adjusted EBITDA guidance range and free cash flow range included in this press release to the most directly comparable forward-looking GAAP measures because this cannot be done without unreasonable effort due to the lack of predictability regarding the various reconciling items such as provision for income taxes and depreciation and amortization.
Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Company’s business. Other companies may calculate Adjusted EBITDA, net debt and free cash flow differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.
Contact:
Company:
Iain Humphries
Chief Financial Officer
1-303-289-7497Investor Relations:
Gateway Group, Inc.
Cody Slach
1-949-574-3860
BBCP@gateway-grp.comConcrete Pumping Holdings, Inc. Consolidated Balance Sheets As of April 30, As of October 31, (in thousands, except per share amounts) 2023 2022 Current assets: Cash and cash equivalents $ 6,643 $ 7,482 Trade receivables, net 62,834 62,882 Inventory, net 6,349 5,532 Income taxes receivable - 485 Prepaid expenses and other current assets 10,176 5,175 Total current assets 86,002 81,556 Property, plant and equipment, net 429,154 419,377 Intangible assets, net 129,835 137,754 Goodwill 222,434 220,245 Right-of-use operating lease assets 25,444 24,833 Other non-current assets 1,973 2,026 Deferred financing costs 1,437 1,698 Total assets $ 896,279 $ 887,489 Current liabilities: Revolving loan $ 60,947 $ 52,133 Operating lease obligations, current portion 4,651 4,001 Finance lease obligations, current portion 113 109 Accounts payable 7,721 8,362 Accrued payroll and payroll expenses 11,959 13,341 Accrued expenses and other current liabilities 23,323 32,156 Income taxes payable 746 178 Warrant liability, current portion 1,302 - Total current liabilities 110,762 110,280 Long term debt, net of discount for deferred financing costs 371,172 370,476 Operating lease obligations, non-current 21,069 20,984 Finance lease obligations, non-current 112 169 Deferred income taxes 76,125 74,223 Warrant liability, non-current - 7,030 Total liabilities 579,240 583,162 Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of April 30, 2023 and October 31, 2022 25,000 25,000 Stockholders' equity Common stock, $0.0001 par value, 500,000,000 shares authorized, 55,015,572 and 56,226,191 issued and outstanding as of April 30, 2023 and October 31, 2022, respectively 6 6 Additional paid-in capital 381,599 379,395 Treasury stock (12,894 ) (4,609 ) Accumulated other comprehensive loss (2,498 ) (9,228 ) Accumulated deficit (74,174 ) (86,237 ) Total stockholders' equity 292,039 279,327 Total liabilities and stockholders' equity $ 896,279 $ 887,489 Concrete Pumping Holdings, Inc. Consolidated Statements of Operations Three Months Ended April 30, Six Months Ended April 30, (in thousands, except share and per share amounts) 2023 2022 2023 2022 Revenue $ 107,791 $ 96,482 $ 201,366 $ 181,930 Cost of operations 64,317 57,544 121,438 108,866 Gross profit 43,474 38,938 79,928 73,064 Gross margin 40.3 % 40.4 % 39.7 % 40.2 % General and administrative expenses 30,258 28,567 57,299 55,308 Income from operations 13,216 10,371 22,629 17,756 Interest expense, net (7,348 ) (6,346 ) (14,219 ) (12,608 ) Change in fair value of warrant liabilities 1,172 2,474 5,728 2,474 Other income, net 13 13 34 52 Income before income taxes 7,053 6,512 14,172 7,674 Income tax expense 1,465 527 2,109 506 Net income 5,588 5,985 12,063 7,168 Less preferred shares dividends (427 ) (427 ) (868 ) (868 ) Income available to common shareholders $ 5,161 $ 5,558 $ 11,195 $ 6,300 Weighted average common shares outstanding Basic 53,329,576 53,901,278 53,467,897 53,782,345 Diluted 54,224,611 54,795,262 54,343,461 54,738,504 Net income per common share Basic $ 0.09 $ 0.10 $ 0.20 $ 0.11 Diluted $ 0.09 $ 0.10 $ 0.20 $ 0.11 Concrete Pumping Holdings, Inc. Consolidated Statements of Cash Flows For the Six Months Ended April 30, (in thousands, except per share amounts) 2023 2022 Net income $ 12,063 $ 7,168 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Non-cash operating lease expense 2,317 1,134 Foreign currency adjustments (1,106 ) - Depreciation 19,523 16,843 Deferred income taxes 1,128 236 Amortization of deferred financing costs 957 916 Amortization of intangible assets 9,647 11,471 Stock-based compensation expense 2,204 2,831 Change in fair value of warrant liabilities (5,728 ) (2,474 ) Net gain on the sale of property, plant and equipment (640 ) (910 ) Provision for bad debt (70 ) 50 Net changes in operating assets and liabilities: Trade receivables, net 867 (8,381 ) Inventory (681 ) (553 ) Prepaid expenses and other assets (3,216 ) (3,882 ) Accounts payable (1,112 ) (1,249 ) Accrued payroll, accrued expenses and other liabilities (5,061 ) (1,809 ) Net cash provided by operating activities 31,092 21,391 Cash flows from investing activities: Purchases of property, plant and equipment (34,745 ) (60,332 ) Proceeds from sale of property, plant and equipment 4,416 4,636 Purchases of intangible assets (800 ) (1,450 ) Net cash used in investing activities (31,129 ) (57,146 ) Cash flows from financing activities: Proceeds on revolving loan 174,504 179,933 Payments on revolving loan (167,213 ) (150,759 ) Purchase of treasury stock (8,285 ) (1,012 ) Other financing activities (58 ) (5 ) Net cash provided by (used in) financing activities (1,052 ) 28,157 Effect of foreign currency exchange rate on cash 250 970 Net decrease in cash and cash equivalents (839 ) (6,628 ) Cash and cash equivalents: Beginning of period 7,482 9,298 End of period $ 6,643 $ 2,670 Concrete Pumping Holdings, Inc. Segment Revenue Three Months Ended April 30, Change (in thousands) 2023 2022 $ % U.S. Concrete Pumping 78,386 $ 71,767 $ 6,619 9.2 % U.K. Operations 15,239 13,541 1,698 12.5 % U.S. Concrete Waste Management Services 14,167 11,281 2,886 25.6 % Corporate 625 625 - 0.0 % Intersegment (626 ) (732 ) 106 -14.5 % Total Revenue $ 107,791 $ 96,482 $ 11,309 11.7 % Six Months Ended April 30, Change (in thousands) 2023 2022 $ % U.S. Concrete Pumping $ 145,573 $ 134,837 $ 10,736 8.0 % U.K. Operations 27,947 25,563 2,384 9.3 % U.S. Concrete Waste Management Services 27,940 21,738 6,202 28.5 % Corporate 1,250 1,250 - 0.0 % Intersegment (1,344 ) (1,458 ) 114 -7.8 % Total Revenue $ 201,366 $ 181,930 $ 19,436 10.7 % Concrete Pumping Holdings, Inc. Segment Adjusted EBITDA and Net Income (Loss) Net Income (Loss) Adjusted EBITDA Three Months Ended April 30, Three Months Ended April 30, (in thousands, except percentages) 2023 2022 2023 2022 $ Change % Change U.S. Concrete Pumping $ 450 $ 1,663 $ 17,140 $ 18,017 $ (877 ) -4.9 % U.K. Operations 933 89 4,597 3,776 821 21.7 % U.S. Concrete Waste Management Services 2,728 1,446 6,471 4,641 1,830 39.4 % Corporate 1,477 2,787 625 624 1 0.2 % Total $ 5,588 $ 5,985 $ 28,833 $ 27,058 $ 1,775 6.6 % Net Income (Loss) Adjusted EBITDA Six Months Ended April 30, Six Months Ended April 30, (in thousands, except percentages) 2023 2022 2023 2022 $ Change % Change U.S. Concrete Pumping $ (650 ) $ 961 $ 31,828 $ 32,508 $ (680 ) -2.1 % U.K. Operations 833 (85 ) 7,783 7,062 721 10.2 % U.S. Concrete Waste Management Services 5,540 3,194 13,018 9,552 3,466 36.3 % Corporate 6,340 3,098 1,250 1,250 - 0.0 % Total $ 12,063 $ 7,168 $ 53,879 $ 50,372 $ 3,507 7.0 % Concrete Pumping Holdings, Inc. Quarterly Financial Performance (dollars in millions) Revenue Net Income (Loss) Adjusted EBITDA1 Capital Expenditures2 Adjusted EBITDA less Capital Expenditures Earnings Per Diluted Share Q1 2022 $ 85 $ 1 $ 23 $ 35 $ (12 ) $ 0.01 Q2 2022 $ 96 $ 6 $ 27 $ 22 $ 5 $ 0.10 Q3 2022 $ 105 $ 13 $ 30 $ 19 $ 11 $ 0.22 Q4 2022 $ 115 $ 9 $ 36 $ 48 $ (12 ) $ 0.14 Q1 2023 $ 94 $ 6 $ 25 $ 15 $ 10 $ 0.11 Q2 2023 $ 108 $ 6 $ 29 $ 16 $ 13 $ 0.09 1 Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” for a discussion of the definition of the measure and below for a reconciliation of the current period such measure to its most comparable GAAP measure.
2 Information on M&A or growth investments included in capital expenditures have been included for relevant quarters below:
*Q1 2022 capex includes approximately $19 million M&A and $2 million growth investment.
*Q2 2022 capex includes approximately $11 million M&A and $5 million growth investment.
*Q3 2022 capex includes approximately $7 million growth investment.
*Q4 2022 capex includes approximately $31 million M&A and $13 million growth investment.
*Q1 2023 capex includes approximately $3 million growth investment.
*Q2 2023 capex includes approximately $6 million M&A and $1 million growth investment.Concrete Pumping Holdings, Inc. Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA Three Months Ended April 30, Six Months Ended April 30, (dollars in thousands) 2023 2022 2023 2022 Consolidated Net income $ 5,588 $ 5,985 $ 12,063 $ 7,168 Interest expense, net 7,348 6,346 14,219 12,608 Income tax expense 1,465 527 2,109 506 Depreciation and amortization 14,721 14,236 29,170 28,314 EBITDA 29,122 27,094 57,561 48,596 Transaction expenses 24 20 27 38 Stock based compensation 1,064 1,351 2,204 2,831 Change in fair value of warrant liabilities (1,172 ) (2,474 ) (5,728 ) (2,474 ) Other income, net (13 ) (13 ) (34 ) (52 ) Other adjustments (1) (192 ) 1,080 (151 ) 1,433 Adjusted EBITDA $ 28,833 $ 27,058 $ 53,879 $ 50,372 U.S. Concrete Pumping Net income (loss) $ 450 $ 1,663 $ (650 ) $ 961 Interest expense, net 6,648 5,599 12,826 11,083 Income tax expense (benefit) 97 (64 ) (292 ) (703 ) Depreciation and amortization 10,592 9,880 20,966 19,688 EBITDA 17,787 17,078 32,850 31,029 Transaction expenses 24 20 27 38 Stock based compensation 1,064 1,351 2,204 2,831 Other income, net (6 ) (6 ) (16 ) (37 ) Other adjustments (1) (1,729 ) (426 ) (3,237 ) (1,353 ) Adjusted EBITDA $ 17,140 $ 18,017 $ 31,828 $ 32,508 U.K. Operations Net income (loss) $ 933 $ 89 $ 833 $ (85 ) Interest expense, net 700 747 1,393 1,525 Income tax expense (benefit) 326 51 286 (30 ) Depreciation and amortization 1,849 2,026 3,676 4,011 EBITDA 3,808 2,913 6,188 5,421 Other income, net (11 ) (3 ) (17 ) (5 ) Other adjustments 800 866 1,612 1,646 Adjusted EBITDA $ 4,597 $ 3,776 $ 7,783 $ 7,062 (1) Other adjustments include the adjustment for warrant liabilities revaluation, restructuring costs, extraordinary expenses and non-cash currency gains/losses. As of the first quarter of fiscal 2023, we have modified the method in which adjusted EBITDA is calculated by no longer including an add-back for director costs and public company expenses. Adjusted EBITDA in the three and six months ended April 30, 2022 is recast by $0.6 million and $1.3 million, respectively, for these expenses to reflect this change.
Three Months Ended April 30, Six Months Ended April 30, (dollars in thousands) 2023 2022 2023 2022 U.S. Concrete Waste Management Services Net income $ 2,728 $ 1,446 $ 5,540 $ 3,194 Income tax expense 937 442 1,905 1,037 Depreciation and amortization 2,065 2,117 4,100 4,191 EBITDA 5,730 4,005 11,545 8,422 Other income, net 4 (4 ) (1 ) (10 ) Other adjustments 737 640 1,474 1,140 Adjusted EBITDA $ 6,471 $ 4,641 $ 13,018 $ 9,552 Corporate Net income $ 1,477 $ 2,787 $ 6,340 $ 3,098 Income tax expense 105 98 210 202 Depreciation and amortization 215 213 428 424 EBITDA 1,797 3,098 6,978 3,724 Change in fair value of warrant liabilities (1,172 ) (2,474 ) (5,728 ) (2,474 ) Adjusted EBITDA $ 625 $ 624 $ 1,250 $ 1,250 Concrete Pumping Holdings, Inc. Reconciliation of Net Debt April 30, July 31, October 31, January 31, April 30, (in thousands) 2022 2022 2022 2023 2023 Senior Notes 375,000 375,000 375,000 375,000 375,000 Revolving loan draws outstanding 29,867 16,884 52,133 50,247 60,947 Less: Cash (2,670 ) (2,445 ) (7,482 ) (4,049 ) (6,643 ) Net debt 402,197 389,439 419,650 421,198 429,304 Concrete Pumping Holdings, Inc. Reconciliation of Historical Adjusted EBITDA (dollars in thousands) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Consolidated Net income (loss) $ 1,183 $ 5,985 $ 12,976 $ 8,532 $ 6,475 $ 5,588 Interest expense, net 6,261 6,346 6,517 6,765 6,871 7,348 Income tax expense (benefit) (22 ) 527 2,030 2,991 644 1,465 Depreciation and amortization 14,080 14,236 14,190 14,957 14,449 14,721 EBITDA 21,502 27,094 35,713 33,245 28,439 29,122 Transaction expenses 21 20 20 259 3 24 Stock based compensation 1,480 1,351 1,333 870 1,140 1,064 Change in fair value of warrant liabilities - (2,474 ) (7,420 ) - (4,556 ) (1,172 ) Other expense (income) (37 ) (13 ) (16 ) (19 ) (21 ) (13 ) Other adjustments (1) 353 1,080 407 1,292 41 (192 ) Adjusted EBITDA $ 23,319 $ 27,058 $ 30,037 $ 35,647 $ 25,046 $ 28,833 (1) See note above.
