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Limbach Holdings Updates Full Year 2018 Outlook

PITTSBURGH--(BUSINESS WIRE)-- Limbach Holdings, Inc. (NASDAQ: LMB) (“Limbach” or the “Company”) today filed a Form 12b-25 to formally extend its third quarter 2018 filing deadline by 5 days. The Company expects to report its third quarter 2018 financial results on Monday November 19, 2018 after market close. In addition, Limbach is updating its outlook for the year ended December 31, 2018 as summarized below.

As stated in the 12b-25 filing, the Company experienced continued challenges in its Mid-Atlantic Branch, with higher than expected costs. As a result, as of September 30, 2018, the Company was not in compliance with the senior leverage and fixed charge coverage ratio requirements under its senior credit facility (the “Credit Agreement”). This caused the Company to be delayed in completing its Form 10-Q while it analyzed the impact of such noncompliance on its financial statements. The Company is actively negotiating with its lenders for a waiver of the noncompliance under the Credit Agreement and expects to enter into an agreement for such waiver on or prior to November 19, 2018, which is the date on which the Company plans to file the Form 10-Q. No assurance can be made as to whether the Company will obtain such waiver on acceptable terms or at all. The Company expects to report revenue in the range of $393 million to $397 million and net loss in the range of ($5.0) million to ($6.0) million, in each case for the nine months ended September 30, 2018, compared to revenue of $354.3 million and net loss of $0.4 million for the same period of the prior year.

2018 Guidance

As a result of the aforementioned write-downs in the Mid-Atlantic region, the Company is reducing its previously announced Adjusted EBITDA guidance, as summarized in the table below.

     
FY 2018 Estimates
Current       Previous
Revenues $530 - $550 million       $530 - $550 million
Adjusted EBITDA $8 - $10 million $18 - $20 million
 

* Use of Non-GAAP Financial Measures

Adjusted EBITDA

In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. A reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP measure, is provided below.

About Limbach

Founded in 1901, Limbach is the 10th largest mechanical systems solutions firm in the United States as determined by Engineering News Record. Limbach provides building infrastructure services, with an expertise in the design, installation and maintenance of HVAC and mechanical, electrical, and plumbing systems for a diversified group of commercial and institutional building owners. Limbach employs more than 1,500 employees in 14 offices throughout the United States. The Company’s full life-cycle capabilities, from concept design and engineering through system commissioning and recurring 24/7 service and maintenance, position Limbach as a value-added and essential partner for building owners, construction managers, general contractors and energy service companies.

Forward-Looking Statements

We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, Adjusted EBITDA, revenues, expenses, ability to report our third quarter financial results, or other future financial or business performance or strategies, results of operations or financial condition. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties which may cause them to turn out to be incorrect. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. These risks also include, among others, that we may incur additional project-related costs in our mid-Atlantic branch, that we may be unable to obtain a waiver for noncompliance under our credit agreement and/or complete the preparation of our financial statements and Quarterly Report on Form 10-Q for the quarter ended September 20, 2018 by November 19, 2018. Please refer to our most recent annual report on Form 10-K for the year ended December 31, 2017 and subsequent reports and filings, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.

Investor Relations:
The Equity Group Inc.
Jeremy Hellman, CFA
Senior Associate
(212) 836-9626 / jhellman@equityny.com
or
Limbach Holdings, Inc.
John T. Jordan, Jr.
Executive Vice President and Chief Financial Officer
(301) 623-4799 / john.jordan@limbachinc.com

Source: Limbach Holdings, Inc.