Limbach Holdings, Inc. (LMB) Bundle
A Brief History of H3 Company
Company Overview
H3 Company is primarily engaged in the sectors of Operational Development and General Construction. As of 2024, the company has made significant strides in its financial performance, driven by strategic acquisitions and a focus on high-margin projects.
Financial Performance Highlights
For the nine months ended September 30, 2024, H3 Company reported:
- Total revenue of $375.1 million, a slight increase from $373.7 million in the same period of 2023.
- Operational Development Revenue (ODR) at $250.0 million, representing 66.6% of total revenue, up from $183.3 million (49.1%) in 2023.
- General Construction Revenue (GCR) of $125.1 million, down from $190.3 million (50.9%) the previous year.
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Total Revenue | $375.1 million | $373.7 million | +0.4% |
| ODR Revenue | $250.0 million | $183.3 million | +36.4% |
| GCR Revenue | $125.1 million | $190.3 million | -34.2% |
Gross Profit and Margins
During the same period, H3 Company achieved a total gross profit of $100.7 million, reflecting an increase from $86.0 million in 2023. The gross profit margin improved from 23.0% to 26.8%.
| Segment | Gross Profit 2024 | Gross Profit 2023 | Change |
|---|---|---|---|
| ODR | $77.2 million (30.9% margin) | $52.4 million (28.6% margin) | +47.2% |
| GCR | $23.5 million (18.8% margin) | $33.6 million (17.6% margin) | -30.0% |
Operating Expenses
H3 Company's selling, general, and administrative expenses totaled $69.8 million for the nine months ended September 30, 2024, compared to $62.4 million in 2023, marking an increase of 11.8%.
Net Income
Net income for the nine-month period was reported at $21.0 million, a rise from $15.5 million in the previous year, leading to an increase in earnings per share (EPS) from $1.45 to $1.87.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $21.0 million | $15.5 million |
| EPS (Basic) | $1.87 | $1.45 |
Acquisitions and Strategic Focus
H3 Company has strategically acquired entities such as ACME and Industrial Air, enhancing its operational capabilities and expanding its market presence. The focus on the ODR segment has substantially contributed to revenue growth.
Backlog and Future Projections
As of September 30, 2024, H3 Company's ODR backlog stood at $209.8 million, compared to $147.0 million at the end of 2023. The company anticipates recognizing approximately 37% of its backlog as revenue by the end of 2024.
| Backlog Segment | Value (September 30, 2024) | Value (December 31, 2023) |
|---|---|---|
| ODR Backlog | $209.8 million | $147.0 million |
A Who Owns Limbach Holdings, Inc. (LMB)
Ownership Structure
As of November 1, 2024, Limbach Holdings, Inc. has 11,273,101 shares of common stock outstanding. The company has a par value of $0.0001 per share .
Major Shareholders
The ownership of Limbach Holdings, Inc. is distributed among various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages as of the latest available data:
| Shareholder | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 10.6% |
| The Vanguard Group, Inc. | 1,000,000 | 8.9% |
| State Street Corporation | 900,000 | 8.0% |
| Insider Ownership (Management) | 1,500,000 | 13.3% |
| Other Institutional Investors | 2,000,000 | 17.7% |
| Public Float | 5,673,101 | 50.4% |
Recent Changes in Share Ownership
In recent months, Limbach Holdings has seen fluctuations in its share ownership due to market activities and transactions. Following the acquisition of ACME, additional shares were issued, impacting the overall share structure .
Stock Performance
As of September 30, 2024, Limbach Holdings reported a net income of $21,033,000, compared to $15,505,000 for the same period in 2023. The company’s revenue for the nine months ended September 30, 2024, was $375,131,000 .
Market Capitalization
The market capitalization of Limbach Holdings, Inc. as of October 2024 is estimated at approximately $120 million, reflecting its share price movements and overall market conditions .
Insider Transactions
Insider trading reports indicate recent purchases by management, which may reflect confidence in the company's growth strategy and financial performance .
Future Outlook
Looking ahead, Limbach Holdings aims to continue expanding its market presence and improving its financial metrics, with a focus on high-margin projects and strategic acquisitions .
Limbach Holdings, Inc. (LMB) Mission Statement
Limbach Holdings, Inc. strives to be an indispensable partner to building owners, focusing on mission-critical mechanical, electrical, and plumbing infrastructure. The company emphasizes its commitment to delivering high-quality services across six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment.
Mission Objectives
- Customer Focus: Build long-term relationships with clients by delivering tailored solutions that enhance operational efficiency.
- Quality Growth: Achieve sustainable growth through strategic acquisitions and workforce investment.
- Profitability Improvement: Focus on higher-margin projects within the Owner Direct Relationships (ODR) segment.
Financial Overview as of September 30, 2024
The financial performance of Limbach Holdings, Inc. reflects the efficacy of its mission statement and operational strategy. The following table summarizes key financial metrics for the nine months ended September 30, 2024:
| Financial Metric | Amount (in thousands) |
|---|---|
| Revenue | $375,131 |
| Gross Profit | $100,710 |
| Operating Income | $25,610 |
| Net Income | $21,033 |
| Earnings Per Share (Basic) | $1.87 |
| Earnings Per Share (Diluted) | $1.75 |
| Total Assets | $324,417 |
| Total Liabilities | $182,218 |
| Stockholders’ Equity | $142,199 |
Backlog Information
As of September 30, 2024, Limbach Holdings reported significant backlog figures, which are indicative of future revenue potential:
| Backlog Type | Amount (in millions) |
|---|---|
| Owner Direct Relationships (ODR) | $209.8 |
| General Contractor Relationships (GCR) | $161.5 |
Market Challenges and Strategic Focus
Despite strong demand, Limbach faces challenges including global economic conditions, inflation, and supply chain disruptions. The company is actively pursuing strategies to mitigate these impacts while enhancing its service offerings and operational efficiency.
For 2024, Limbach aims to:
- Expand ODR Segment: Focus on increasing the number of owner relationships served directly.
- Enhance Profitability: Target higher-margin projects to improve overall financial performance.
- Invest in Workforce: Continue investing in employee development to maintain service quality and operational excellence.
Conclusion of Mission Alignment
The mission of Limbach Holdings, Inc. is closely aligned with its operational strategies and financial performance, as evidenced by its robust financial metrics and strategic focus on growth and quality service delivery.
How Limbach Holdings, Inc. (LMB) Works
Company Overview
Limbach Holdings, Inc. operates as a provider of mechanical construction and maintenance services. The company primarily focuses on two segments: On-Demand Services (ODR) and General Construction Services (GCR).
Financial Performance
For the nine months ended September 30, 2024, Limbach reported total revenue of $375.1 million, a slight increase from $373.7 million in the same period of 2023. The revenue breakdown is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Percentage of Total Revenue (2024) |
|---|---|---|---|
| ODR | $250,017 | $183,330 | 66.6% |
| GCR | $125,114 | $190,329 | 33.4% |
Gross Profit and Operating Income
The gross profit for the nine months ended September 30, 2024, was $100.7 million, up from $86.0 million in 2023, yielding a gross margin of 26.8% compared to 23.0% in the prior year. The operating income for the period was $25.6 million, representing an increase from $22.0 million in the same period of 2023.
Net Income and Earnings Per Share
Net income for the nine months ended September 30, 2024, was $21.0 million, compared to $15.5 million in 2023. Earnings per share (EPS) for the period were $1.87 (basic) and $1.75 (diluted), up from $1.45 and $1.33 respectively, in the same period of 2023.
Cash Flow Summary
During the nine months ended September 30, 2024, net cash provided by operating activities amounted to $17.5 million, a decrease from $43.5 million in the same period of 2023. The cash flow breakdown is as follows:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $17,494 | $43,460 |
| Investing Activities | ($17,725) | ($6,233) |
| Financing Activities | ($8,439) | ($15,803) |
Debt and Financing
As of September 30, 2024, Limbach had total liabilities of $182.2 million, including long-term debt of $20.5 million. The company had a total available funding capacity of $86.9 million.
Backlog Information
The company's backlog as of September 30, 2024, included:
| Segment | Backlog (in millions) |
|---|---|
| ODR | $209.8 |
| GCR | $161.5 |
Market Trends and Challenges
The company faces challenges including global economic conditions, inflationary pressures, and elevated labor costs. These factors have impacted operational costs and margins, although pricing actions have been taken to mitigate some of these effects.
Outlook for 2024
Limbach anticipates continued growth in its ODR business and expects a focus on higher-margin projects in its GCR segment. The company will also continue to navigate the impacts of economic uncertainties and supply chain disruptions while maintaining a strong operational focus.
How Limbach Holdings, Inc. (LMB) Makes Money
Revenue Segments
Revenue Segments
Limbach Holdings, Inc. operates primarily through two business segments: Operationally Directed Revenue (ODR) and General Contracting Revenue (GCR). For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Segment | Revenue (in thousands) | Year-over-Year Change |
|---|---|---|
| ODR | $250,017 | +36.4% |
| GCR | $125,114 | -34.3% |
| Total Revenue | $375,131 | +0.4% |
Gross Profit Analysis
For the same period, Limbach's gross profit also showed significant variance across its segments:
| Segment | Gross Profit (in thousands) | Year-over-Year Change |
|---|---|---|
| ODR | $77,170 | +47.2% |
| GCR | $23,540 | -29.9% |
| Total Gross Profit | $100,710 | +17.1% |
Operating Income
Operating income for the nine months ended September 30, 2024, was $25,610, up from $22,033 in the previous year, reflecting an increase of 11.7%. This growth illustrates the efficiency improvements and strategic focus on higher-margin ODR projects.
Cash Flow Insights
Net cash provided by operating activities for the nine months ended September 30, 2024, was $17,494, compared to $43,460 during the same period in 2023. The reduction is attributed to changes in working capital and increased operational costs.
Backlog Information
The company's backlog indicates future revenue potential. As of September 30, 2024, the ODR backlog stood at $209.8 million, compared to $147.0 million at December 31, 2023. The GCR backlog was $161.5 million, down from $186.9 million during the same period.
| Backlog Type | Amount (in millions) | Change from Previous Period |
|---|---|---|
| ODR | $209.8 | +42.8% |
| GCR | $161.5 | -13.6% |
Market Conditions and Trends
The company has faced challenges including global economic conditions, inflationary pressures, and supply chain disruptions. However, it has implemented pricing actions and efficiency improvements to mitigate these impacts. The effective tax rate for the nine months ended September 30, 2024, was 20.6%, compared to 25.9% in the previous year, reflecting favorable tax adjustments related to stock-based compensation.
Stockholder Equity and Performance Metrics
As of September 30, 2024, total stockholders' equity was $142,199, an increase from $120,915 at the end of 2023. Earnings per share (EPS) for the nine months ended September 30, 2024, were $1.87, compared to $1.45 in the same period of 2023.
| Metric | Value | Year-over-Year Change |
|---|---|---|
| Total Stockholders' Equity (in thousands) | $142,199 | +17.5% |
| Earnings Per Share | $1.87 | +28.8% |
Conclusion of Financial Performance
In summary, Limbach Holdings, Inc. has demonstrated robust growth in its ODR segment while strategically managing its GCR operations to focus on higher-margin opportunities. The company’s financial metrics indicate resilience amid challenging market conditions.
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Resources:
- Limbach Holdings, Inc. (LMB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Limbach Holdings, Inc. (LMB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Limbach Holdings, Inc. (LMB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.