LMB - Earnings call transcript Q1 2021

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Operator

Greetings and welcome to Limbach Holdings Q1 Fiscal Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference call is being recorded. I would now like to turn the conference over to your host Jeremy Hellman of The Equity Group. you. Thank

begin. may You

Jeremy Hellman

March much announced morning results its XX-Q quarter its very morning, and Earlier Limbach Form ended fiscal the Holdings first for XXXX. and you everyone. good this filed XXst, Thank quarter XXXX

naming the that this are similar With can I'll in segment to material reviewing turn earnings may and annual During report The during Form providing any results be segments call Executive each President to results with forecasts, differ A financial reminded to its closely referred evolving with align that conditions. owners. discussion reportable does respectively. Direct from which an create GCR Chief Limbach the periods. on will with Holdings. Relationships General statements to renaming call. of the Construction the has align segments forward-looking or Form quarterly Relationships and as morning. is market These of and more to XX-Q found of prior made may reports Service to and the filed current first and This business relationships are results not call. this to any those contain ODR. XX-K reportable may description its segments company's Contractor XX-Q this Owner segments statements on Officer on now and applied the building Bacon, company two Charlie the differences complete prior of the and or over year's model the reportable reportable call, when Today's differ the actual statements Listeners Limbach this made factors be segment for during update actual forward-looking Beginning from review risk quarter cause projections, results updated

Charlie Bacon

morning us. and everyone for thanks Good joining

Jayme COO, McCann; Joining our Executive Katz. is and me President, Matt Mike our our today Brooks; CFO, Vice

year cash certain milestones generation. were earnings Last that's us growth successfully improved accomplish we important are have year view transformational improvements for and we focused and We where year deliver year continuing This furthering as plan the to strategic strategy. winning on growth an that. drive and underway the for progress XXXX in to our a was and successful we improving -- of is We Limbach and and owner-direct results value a doing our overall to year continue for one shareholders. those about

the that focused past we and be and we on month sales Over conditions of our we ago. improved you have XX to trend Score focus margins. projects and AIA's noted opportunities Billing ABI When returns approach was expansion. to half from has a to cases, XX.X, from a proven XX jumped that on Index above frustrating The to normalizing key The prior. spoke XX.X, American on with XX.X risk The New our Limbach's securing smart winter a March look a profiles revamped the be gross We indicate In continues that business month deliver to after XX.X Architects score Institute the capital. human months, maximizing XX clear where we've to ago, talented have measure continued. scores month in favorable Project both again other Inquiry up indicator.

dominated Another more we the company. basis. believe on Health their higher for April. which end our for have this is a index we points report the Limbach have the economic markets. The XX% and score accomplish strategic two opportunity is of means year-over-year planning strengthening data reinforce high we the Index that backdrop care within These indicator Dodge commented in which goals the major XX-year a opportunities sector hit Momentum in institutional projects laboratory which to

online are enables US we show us presence in opportunity pursue. projects as further sector roughly we're XX/XX next which full driver is Morgan the on is building the Late as the operating growth expect GCR hospital GCR helps and In traditional with adding between the we focused in enhanced segment, service a be to and segment above through helps an on is our indoor building to a years, reference we to more we service for order growth the from those recent which healthy hub air upwards will opportunity and few further us which a coming GCR expand to predictive reasons. in Nashville, boost positioned integral very which service next that which pipeline becoming energy technology In this do in believe prudently ODR investment months. revenue to incentives a to strengths office be we're demand Limbach. believe health Congress agriculture for ideal We as revenues. evolving. XX% six that, for deploying expect of We you Biden Many in emerging efficiency work, It's large have the noted A indices and and of and building the margin the both expanding in announced apparent projects to XX from a ODR is rapidly are that engineered farming segment. well automation as accelerate is Over overall plays our revenue great is energy to believe maintenance. monitoring of mix. our an service the its as to care in as analytics This The agriculture smart GCR which pegs focus growth. much time will lead the profitability. in and business split there part XX/XX building A better existing of significant report area, To owners to such our see indicates to many Limbach market to opening ODR chains. immense us revenue to several end systems provide quarter, improve opportunities facility and to growth we selective new is determine sustainability. customers projects bottom-line a healthcare environment handling intend efficiency me Under which ongoing for our a administration, work for worth indoor highly an this and profitability. that generating European in Stanley markets. projects sector the be accelerate of drive working drive heard improved analyst we $XXX of to and strong and building market. solution. data that This cycle more an future accounts referenced the business we're solutions, segment, billion Again, I in customer installing by They

we'll First, control accordingly. the building owners the for and quality understand and budget of humidity it importance indoor air

in the $X projects is our spot the require to third, of maintenance. sweet And million Second, $X million. size facilities at ongoing these

many We active to year. in projects of have expect ag half this the eight indoor as second as

late be terms and a revenue this capital strong more the the year to case We the That's February. core are of be largely profits. than and in to are and industry last historically attractive. still expect This this in of move a We and opportunity into second pause that strategy diversified year has early January half experienced we're function been into weighted sectors resources human the resume. innings our furthers of building

point more As a we our and deferred revenue are projects conditions QX to healthy. $X delays seeing normal ODR million. are and our as upgrade towards The approximately news so impact with awarding be projects have is awards Certain for moving activity up appears pace replacement by today, to in describe in the of expected receding with you March ODR good return customer did customer move current of maintenance certain contracts equipment to speak must some I forward. normalcy base. long. small we our the The pick can projects industry state. Eventually for customers and only decision-making. in seems the ODR tipping impact the a COVID The been be

into get entertainment we're educational push people facilities buildings, the to a seeing office in With momentum. back dramatic pickup venues, and

some QX results. result our an accomplished refinancing in impacted which important expense also We in non-recurring that did

Going forward, and will increase expense touch the dramatically will which free Jayme on. flow interest cash reduce the refinancing

So over with I'll to it Jayme. turn that,

Jayme Brooks

in total our the which to revenue that impact is in declining That at ODR last consolidated sales resulted were see prior in late total drivers. function up shift quarter happy revenue XX.X% XX.X% revenue. improvement, on That with experience decline of talent. revenue segment intentional segment gross project was into a margin GCR First ODR the selection strong to we're first We XX.X% last impacted in primarily million risk was in essentially our Total year. to down primary flat was shift year. quarter. Needless did that quarter, revenue $XX.X year. of volume ODR sales for million segment the $XX.X first from was compared fourth million. the XX.X% our accounted $XX.X too revenue as due and COVID-related million, quarter beginning to our to March XX.X% with quarter, progress emphasize the in to revenue. as construction and mitigation, our to more recognize aligning booked say, two some but compared $XXX.X of rigorous the improved ODR profitability that a which to

of revenue coming from And portion second, ODR in higher our segment. our increasing our the solid segment. GCR First, margin execution

million write-downs GCR year. segment, in two $XX.X was the quarter, up million cleanest no in years. $XX.X in last generated net there from SG&A the quarter, were quarter the is This which

noted in to we as I've normally made previously, uncertainty COVID's business. As of the would the lower was on adjustments expect, due we impact SG&A last year's XXXX than

with $X.X travel end Interest February. at said, like where SG&A timing invest end was QX, up our to year. differences while we going line of the year We in ago. $X.X to With for completed owner-direct it's the But debt expect we're a quarter a continue this to to the in between refinancing of strategy. expect respect the that We full facilities million normalize compared quarters expense annualized to reasonable indicator our during year, million to expense. items we of first have

cost. expense also reduced level debt million So interest a $XX lower loan interest of reduced as but the quarterly rate, only on well as interest reflects not a number

payments amortization fees started and Additionally, These total and forward. $XXX,XXX drive XXst. the monthly March scheduled payments will rate interest going interest lower expense down principal our of

the to the the interest starting principal be using payments QX, $XXX,XXX month. with the credit facility to scheduled of expense outstanding per in should related So model the you interest along rate and able balance

typically for the EBITDA had XXXX our of weakest the loss $X year. not last for For The or per the the loss is for onetime of loss was diluted refinancing pandemic first quarter of charge XXXX. diluted contributed was $X.XX the of to approximately felt compared that Net quarter And yet XXXX, or $X.X $X.X a million impact $X.XX loss versus QX a seasonally. per note of million first quarter same $XX,XXX million $X.XX share. adjusted share share million and also a quarter $X.X the or loss of the to per QX

terms year. seasonality, than always half the and weaker first year half quarter In the first the have the been the second of of of

activity to past. continue and year in we what of business is in to the relative the to pronounced be noted, expect Charlie As more much booked, experienced second see projects as half split we've a robust the

be higher consistently at second Over points year, consolidated of the the we've This past second approximately we will half. several for revenue XX% the half. in more that think least or X% reported split years,

EBITDA. of March an as distribution That of respectively. million of expect total half. to implies larger the sheet million on larger our ODR ODR On GCR Shifting the of in cash backlog of terms a million makes up portion XXst impact naturally Total margin December similar $XXX.X XXst, a for second as was adjusted $XXX.X $XXX.X the backlog We in $XX.X segment and balance to our accounted even XXXX. March and compared the million as and XXst, flow. consolidated mix

as $XX.X of million $XX.X March to total X.XX on XXXX. XX long-term. million debt classified December and of ratio was of current compares of cash XXst, which and had cash current We net million as $X.X costs issuance equivalents million of classified $XX.X as debt. total X.XX, was was Our and

is cash $XX I consist credit loan minimum interest LIBOR and February, greater completed $XX of flow mentioned a expense refinancing reduce term loan. in revolving debt new LIBOR The floor contribute million scheduled reduce and rate of amortization with before of loan facility prime of interest the X%, X.XX% the term and term earlier, rates It in X%. on the prime the of debt credit rate The amortization. will balance floor meaningfully a or senior the we a improved plus this As X% should facilities our credit facilities. million also our to plus term Reduction cash to year.

in a $XX gross We of per also raised through of X.X completed an shares of February $XX.X net million stock equity at offering million the proceeds offering that share. common price of issuance

We continuing was of and a and quarter cash to acquisitions. deploy support had cycles -- these the focus We disciplines we the decrease million. usage on $XX.X are our position. ago. to usage from net $XX.X cash maintaining of implemented to Shifting capital. our our operations was strategy to looking We're driver a primary a proceeds possible to this support in and million owner-direct This year working billing overbilling are

from ebbs of in any size on continue to given period. expect life operations cash reporting and we projects However, revenue depending cycle the our and and flows timing in the of to have

cash payment the the $XX.X that during quarter totaled used refinancing amortization net million. first Additionally, to related the and and

announced press $XX our we adjusted between consolidated As and EBITDA million release, for million with million. in the XXXX range $XXX million be of from to $XXX an revenue to in expect $XX we

the our believe providing in of hasn't $XX the margin very is set dilution to gross the work work earned and perspective, the GCR in we the rest execute to selection it as million. that revenue the QX, million the rate of revenue is we're year-over-year From help company In year. we transition would expect goal. $XX of range QX; $XXX.X this GCR March The T&M backlog for typical year goal million to that think in revenue isn't million and work in and written particular the the earn million XX to revenues to million fill earned revenue on relative on in with the path expecting backlog, performed in a accelerates. the revenue this ODR to to the criteria come work was we and buildup normalized the XX.X% recent transition model project current $XXX of Approximately, not What's as intermediate-term buildup and year, is for the year. our $XXX from together where gross revenue of be labor that that XX.X% margins of last ordinary much large understand This in continuum. That's further quarters, We associated margins this likely meet as investors be segment, range allocation in million we the terms probable ODR to to The construction guidance, in range we $XX of the range still XX% ODR expected growth we the $XXX margin the better March the The in low-margin to full work. GCR but earned risk, spot Beyond in earned will the XX; current is increase which gap million expected revenue unearned opportunity maintenance-based our of already revenue on with this the been owner-direct business order pending of earned and activity. that expect booked to course a and this the revenue execution $XXX XX%. into enough from projects. documentation; GCR year to was some we in generated million promise scheduled pricing. win work the $XXX that the million to below million change $XX The the yet from as in range backlog in should starts revenue left be revenue year project year. us be the that ODR is range XXXX. and modest to for is of in $XXX and and

is and year. GCR timing a both consideration For ODR, this

now. over of to hand ODR However, operations on I'll market. Mike the our every it one focused is

Mike McCann

our in our improve which the controls and to I'm updates trend customer ODR continued risk continue to right focus and We're our seeing provide on our local realigning ODR in going GCR to management of success base. teams returns leadership both expansion GCR direction. on expansion from

We revenue sales additional driving with are the our to on more business gaining wallet ODR XXXX-plus should expense. focus maintenance more high-margin share contracted from ODR of in This result little agreements.

front, strong we're We've all project to our criteria. backlog. for make become opportunities and working that want to up about much customers We've where more customers through that work deliver very has old to GCR we On cycled outcomes. sure measure isn't there proven the selective GCR historically have financial the lower-margin only just and and relationships

than work account residual GCR year. that of revenue expect for We our X% to more this

less profitable reflect this projects stringent with also and Limbach our levels more risk new meet returns levels As our or and ago. a design, levels burned appreciate profiles are value year creates, craft and more that for our comfortable backlog labor Limbach customers only By lower the replaced than off maximizing higher-risk business that proven backlog they management has margin workers. with current the were it

allow the of quality that better. improve the is the us margins we we're better into to The work with However, together selling backlog profitability believe gross risk-adjusted future. should now

schedules is cost of help strategy shorter secure projects reasonable that smaller within labor mitigate and complete with material of amount the Projects to schedules risk with a overriding Our time. increases.

we With higher-margin paid fewer great record these to be of outcomes, claims track tend we promptly. and of a projects type have

a Limbach have have in working. track we but risk we're management successful are a available have We place resources. The and where we labor few projects large-scale processes pursuing, only record

into that across it's status projects the strong moved claim to months. prepared progress pick our we great distance With It lines to past To past, maximize in Regarding sheet, have significant I sales we reinforce, these have returns. starts the on of service. of claims mentioned again. balance XX the each improving new the to we've need and no issues. all our to margins go to in we're continue the focused the on note, also we're momentum up claims with see

direction that Matt a with going write-downs. off Lastly, I'm write-up in pleased are QX to now. it right in operational and resulted from and our reinforces our I'll net plan. to impact strategic the hand neutral This further note we

Matt Katz

evaluating a perspective, an time Thanks in and interesting Mike. a that. number From opportunities we're be of M&A to it's market just really the doing

broader just in backlog revenue for There backlog, are look back has resulting conversations core And of we've model. for growth adjacent profitability XXXX. process is, value. think right clarity objectives. contractors. convert absolute and more. on tough to great expertise great obvious got geographies transition support that the ODR and that another strategic for that we're companies a other They're into more front-end dynamics. two-way won't seeing obviously, than We're We're new of but and values business and opportunities. the operating which a that We're of businesses trends proverbial cultural are own capabilities. degree and quarter grabbing we had we that on making the relative exchange and to When our looking the and share see in our I our good some for landscape which looking and and now, or also much for for footprint to interesting focused course, at opportunities our back-of-house we looking some that shoots expand are provide COVID conflicting businesses step the sometimes Most impacted green some year that

not. increase the with value dynamic, than owners rate there's And Everyone gains not quite to engaged so tax seems intrinsic both haven't on businesses. tax capital to are basis they're likely pretending gains also a caught of the be in business the where these more is but think to up those capital earnings that Then TTM an terrified, when us.

as and there's a sellers, leverage in of but a part as urgency you'd shift of And so between result apparent the buyer of seller expect. on relative that as isn't sense the

a us We're but in and to So explore where remain and be flexible where we our disciplined and have means continuing we remaining to we're time at that of keeping a macroeconomic doubt stronger on on opportunities have without multiple be, activities stronger a trying and to for successes. sheet need look right to supportive parallel. efforts. also updated backdrop the you the we're been the balance to We forward

Charlie Bacon

So pandemic. variety to We I'd thoughts, I which Number seeing to very in well our business. boom, and strong have demand. share. the of We of be few end is which the market diversifies served agricultural one, We're markets, going that operate closing are built diversification to further and advantage of us take it a believe diverse a through indoor important many like diversity. company the

projects, to very improvement. the the We overall picture macroeconomic growth of also new with technologies especially the intend margin possible Limbach bright. upcoming Number and energy take for advantage two, retrofit The employing. expansion is we're ODR

our maximize Our and smart. ODR margins simple and grow with both ODR and GCR strategy is to

As are Number proving of the the by, our labor goes direction. inflation and each strategic results We're closely and three, commodity pressures labor our inflationary markets. conditions. out watching quarter

with other to controls take pricing appropriate and terms. us Our risk and allow action vastly contract improved incorporate and factors, these

of the for smart his thank one Board years. our to want Larry I Finally, contributions members, Swets, Mr. over

earnings morning, Larry the in a noted once successor. Board will we this leaving be find As our release

crystallize, to contributions. committee your take on everyone for to XXXX out questions. we a thank we that, update of tied direction Our will Nominating want his to initiatives seeking Board continuing further undertaken new be Larry of will the number to are our Committee process company. our progress. experience I is Governance have for to forward and and strategic searching the The With our look of Limbach. paradigm all laid beginning diversify in be A Again, we'll bylaws. to following while the

Operator

Lake the Brown a Please with question. with proceed conducting Instructions] line Capital your question-and-answer first question of session. At will Street comes this we from be [Operator Markets. time, Rob Our

Rob Brown

Good morning.

Charlie Bacon

morning. Good

Rob Brown

has question do My with predictability. to first

much little you're at pretty end-loaded How how is like visibility It seems have in do still back this business? do the much how your about talking Given But predictable year, at visibility a you unpredictable. term near have point? is this a point? business really you the

Charlie Bacon

with to off Yes. to close, GCR piece, a pretty already with just -- we're going good more when sold I'm sell. I look then, segment look break ODR got the needed really the shape. but And $XX We've backlog mean in you to the you we're there. down bit you from much it start our what at to got when we we've of burned at revenue. through standpoint million of -- we've

a base times project four start have the we million about numbers, $XX take doesn't pretty $XXX generally through also that you'll of to backlog And We is of brings up million $XX revenue. much you new north all have multiple include three see sales. you account that When maintenance that those segment. adding additional and of which to into the about million. have, in at we're then that that And

to you So, QX. when and that QX was QX, sales actually QX, that now example in of and March an a interesting The guidance, one at in of customer. month for overall $XXX pretty a you QX we're up execution. work right and give question is that us. breakdown I'll making million will helping there million right, burn was the start it's of build to the $XXX just guidance all the timing Jayme the looking

faucet segments. started the up. opened us in to pipeline the just week. terrific asking were up, million a opened But And both one $X $X particular quote sales million to on Our customer,

the the demand more which our to to being half at now. we're at the that that's it work, right to and Now But going their create the not year and indicates the smaller Rob, awarded pent-up service project-type pricing perspective another that that but going looking it's way good for just year. we're continues budgeting timed is pace towards yet, be be back

Rob Brown

to us lever a it Okay. And sense you just maybe talking the Jayme, for up with that just to revenue given driving wanted cost really of the of in the expanding expansion gets you I about? is think the terms you you a of of talked those expenses -- that get the what's in or you're ODR it then color. how you SG&A guess, the Is I SG&A I the about, give fair EBITDA what's amount. get sense that. levels level. segment, there a guided Thank sort margin And

Jayme Brooks

Yes.

obviously weather COVID travel last zero. cut impact across really year, were any with going March the initially we for kind it. cut with of to back to So Obviously and company. how put as back not the initiatives had hold. knowing was hit We on when through the in company basically And went well headcount, on

putting well kind our our rate, investing the the into back the that coming as reflected into everything initiatives so, for growth for And as rates initiatives. new company normal back of we're is QX dollars really run of to -- kind our just travel normal

Rob Brown

then, at price if or had. can seeing adjust there? How on labor Charlie now? this good. are you conditions point price last that you the issues is shortages labor question right Okay, Are quickly inflation you And inflation seeing labor commentary the you and/or what's

Mike McCann

one. This is take that Mike. I'll

I to with secure looking is projects good smaller going that forward quicker. much think thing the we're our are and strategy move going schedules to

So from sure make priced allow perspective that to that us correctly. a it's labor will

is workers our and trying maximize think match ultimately making key to that we're to I our craft workers thing our we're returns. too labor craft current sure note other the levels

help navigate that. will quicker the ultimately, projects So us

Charlie Bacon

comment. another Just

our updates weekly we commodity of every services on estimating week get sort pricing. pricing any Our system into

what approaching equipment. for ahead award a handle firm we're an a So, project, it. we're when the of materials have our of on And the meaning when projects out we we pretty good looking buy at we're

if smaller something see it to used said. out, that have in budget for we not variables be a you we've little estimates our on that could the get and to got And Mike The they're get take reinforce just to more. In done. years get some right? just build. handle got we up bit and projects go. But but I to some X we've good in three off long-duration and for or years proceed, projects And XX we it. locked we accordingly. to allow projects our happen these two to big budget of Generally, a focus. want expense, we pretty contingency estimates what bounce happen I -- that inflationary them, think So a months. done of including our get -- But that's these out they're in part approval in So, we also

inflationary large And we do but to large projects with on have we've jobs we're having the the could of course, going may to the company proven that the in in we're some to only where looking have be talk those them impacted sure successfully base customer understanding things on projects, past. still it. we about are We executed resources with to concerns at make bigger our clear and a

Rob Brown

you. Thank

Operator

[Operator Meadow comes Instructions] Long Investors. the next Our question with of line Jon Old from

Jon Old

everyone. Hi, Thanks call. for the

Just GCR quick a question on gross margin. the

Jayme heard think right. if I'm I me, wrong if I correct you

of of the margin. gross mentioned sort a targeted you XX.X% XX.X% to think sort I

out low which included last year, of based that's behind -- -- us first I know of low X XX.X%. the $XX quarter So And That very now about write-downs points news. revenue. don't great it you're was taking the was which very on million margin hopefully

back $XX higher it Shouldn't You XX.X% million write-downs shouldn't it number couldn't -- out that to take than and be that if XX% margin? shouldn't improve mean general So you the be XX%? -- just do then to and add the the XX%, just then closer that to that I math? be

Charlie Bacon

math back Thanks for question. way it. a step Jon. doing great Look it's And when and the the you're again opportunity the do you

to in and see got We've done we're execution that I numbers. execution at the front right to that job some room great doing we believe out think are. starting the margin in flow the I Better better run selection, field. a to gross of improving and we're through us firmly prove things we've all continue

we two for quarter Every So but we're continue the with time improving. let's you're And in the conservative to correct. to to had at see stay We're I quarter going continue just here out looking prove thinking. way think net our happened that's we're us in that's no trying our results, here, first years. The it, right improvement you're right? write-downs to

So, out put very positive proving ago, months XX what in outcomes. now place we it's

that as So to year. update thinking the work correct. we'll is your we through continue But

Matt Katz

Jon it's Matt.

that. add just Let to me

and job the we'll As first conservatively, or complete can that the think points XX a problem the XX% up we've start and to at then of project productivity to to items it about we again. the want out last and feel is not do we booking the work good The about we whether carry risk cost, and margins not of later and in is probably but XX as have bring conservative we're find we and the to labor take good through take XX%. until it it subcontractor the probably got book work take feel majority about or thing eliminate XX% the that a scope down material a and work going we to at margin the approach more good cycle. productivity And the from life the

So I the really table. want We really think about make when want upside recognize the be items just to the taken we to opportunities. careful sure risk we we've off

Charlie Bacon

Jon you just of the when add executing. how future thing, to company kind want with other the is think too the about I

nice So months to which start months for engineers the now us very is should opportunities could on. to we're see X to to getting selective at you're to obviously are the -- engaged. is the during much that right important frankly, folks existing which out of we the great to because can book in strong it The go is, improvement executed architects my to X give indicating past everybody indexes like at marketplace. uptick But news. business going understand. That's owners is a the take X a shared with and than see lot those The so of to look create for XX better I what for means, going of is indices the which prepared looking being industry on design going in rather remarks the think and us that's architects uptick. even take we expansion dramatic. And I more way margin jump to the more indices And we become quite want

At see and going grow resources backlog put play just we're that think will against. look yes to 'XX. healthy at there's be and as looking exciting really We're the and I how at our it. place to the think we because time QX, really construction, with same we're going been are where I our a quarters to going us So continue define in the QX to rapidly for us ODR, help

back the As that and can to prove probably will our construction and leverage do all mode at execution, margin continue to XXXX, looking sense. hope we capital, to the with right? I going So continue year, contribute stay we but best line. forward go out our into better numbers now, makes to bottom we're growth go that's right this steady, human we

Jon Old

into I've that before. asked Thanks. which And next can think this you Okay. question, maybe segue I

construction, So sort being still the that I'm this calling is segment year establishes a base. sorry, reset it new of a feels like construction and of – sort

But this to feeling So of million – so but $XXX and five road – map trying a paying would XX-XX base, for can map? just the there get don't expect can't is that to to modestly? construction road question $XXX you gets you what years. exact to by get to million the or then grow be can you in I'm GCR the on direct you $XXX mix from what's Obviously, obviously, a so goal And million. business this grow the to it – shrinking for the continue anyway, my

Charlie Bacon

good look how you where another we're the – this. It's at do standpoint question look from of taking Sure.

going year-on-year. expecting heavy ODR, we push we're the nice We're So very that growth can. to to as obviously continue as continued

for maximize do get burn So place. want our to $XXX that to a in rate it that We provided stated, number the management to we that's of million right up us with on between quality good with project have has current piece catching information off million, talent, and construction just the now But $XXX that run talent. some and we some to I again return as XX-XX. the leverage that that

of more. to biting in we As Mike start off shepherd continue we'll see and business, improved terms execution continues the to results,

that in execution how we're some doing, we'll see growth see how we're the to the back those But XXXX units the in provide expect to look to the units, at continue business segments. we'll it through margins way of we come think is, push going would commentary each GCR I we'll growth – piece. So are. continue around But for certain to business start good as I seeing

yes, construction we're we the in is our bottom do going line to to So execution. future. This continue expect this, see out in the though, growth to year prove

Jon Old

then me. And last Okay. Thanks. for Great. one just

obviously, obviously to So Matt. this mix I for – to is mean be But acquisitions. big to is get going part that of more going that to to get a be

take cash, you're – to generate self success to can that again a – So that hoping sort it I in what a hear I'm take to map that, acquisitions. everyone, can we it resources mean, Matt, a buy something, this of How going Obviously, – something. for you all you But that a flywheel do your slow, generate cash be I'm disciplined this and just I like evolving I see more then cash-generative just get that done in cash-generating – into buy stuff. can want business. area? turning much just how deploy starts for year? those realistically, road And into mean

Matt Katz

to we the it done that million just a number. number the $XXX look north XX% as being in incremental that get million, million, you will It that grow organic that to a organic little year, teens If that a will last become as if opportunity. bit of growth would to $XXX basis. this relative approach obviously it M&A deal $XXX million, so mid big implies to rate starts to But numbers, an become to on earlier be supplemental revenue Jayme at more of year, challenging basically an provided right? year's million, law that. an $XXX to range This $XXX view ODR continue and we business high of Jon,

that reasonably ODR supportive to think, continue to important those grow kinds want so And from rates. growth view. point of now M&A is to M&A we if market I will at for in particular an right segment be of do, The

do that them one year of a the strategy every that I managing over won't among things there enough to the our I type in But next hopefully mentioned, that think the for mirror, of there number to over couple years to market be We're this financially. three couple M&A will be or offer volume all ability between want forward. isn't think the sort balance this us, tax for couple we're There's and one a them spec been many how are that find that and we to I factor the we are before it. to and years some opportunities other there's measured approach. in too opportunity of As every be next enough terms But of make long hopefully out there's have as see that our universe increases how interesting. up that COVID be on looking strategically dynamics maintain of look result. target. just a enough act and if inability carefully to years before will two rearview needing I and thoughtfulness, to sheet a sorted And us discipline in of disciplined here And again, of comments year market, certainly volume capital least are gains, businesses think It integrate at deals weaker thoughtfully, of there. But strategically we sure your and on at the some certainly of limiting get in about and can seeing the will about the reiterate year.

to that GCR, is And $X more to it be momentum Limbach in And as and million EBITDA. I Construction. decent behind be realistic couple of objective. that to $XX million that we hopefully doing million, months a think the is effort, $XXX of will new once before, the these old $X but get not going will ODR near at said a So, million I Limbach we are a portion of million like think, some least million be of $X have like, every deals term normalized $X probably GCR to are revenue might XX and

So, good work risk of time. practices, heavy a but on the focused customers', good same markets, management at dose owner-direct end for good

Charlie Bacon

with I that airplane few also we've the here conversations. people. over to We're reinforce refinancing face-to-face talking of quite the miles we're to past months, a couple post out engaging want and road logged hard. just Matt's there hit the

it's coming So together.

Jon Old

Thanks I a lot guys. I’ll appreciate step comments. back. your

Charlie Bacon

Thanks.

Operator

Please next the Greulich question. with comes Advisors. question Capital from Richard your line [Operator with of Our proceed REG Instructions]

Richard Greulich

for you it. the your at businesses look you and way increased the thank between transparency, Yes,

acquisitions another repurchasing silly, I bit sounds your I'm since wondering, it's of concerned you the own year, acquisitions. metrics just is you very -- stock helpful. Can stock, company? let's say, I you little a but am at about making describe, view, it I use your versus think your And know discussion earlier what you in you the considerable buying how then. stock down look sold how versus since

Samuel Katz

imposed ability the and of facility. credit So repurchase our a by conditions terms there senior new limitations to that practical our stock from are perspective, are Rich on just

resources been to trading We're lot -- businesses new of fun site in good of we very the a we seeing a market, right? even valuations for time think are we deals trade other sort some But very can we're balance to have We've that that internally accretive always got far five we them to times. as The much has on going we as ODR have of are businesses just we've and We've meet seen discipline if could the cash that we and a for stock. before as think between We're in those to want accretive flexibility to greater they're just connect loose it for, obviously about when reasons been the are those both are and get deploy a good tombstone can X.X offline. that the and do to agreement. now multiples obviously facility, for of are strategy our range what X.XX desk, that under and you credit to somewhere option X.X on been we variety those. think some in and We some what for We've we credit have through, I focus would externally. agreement. looking want time maybe, that We're do not at too. And both, really there's like, an on certain prior put good and can that's years the excess business greater would sense patient allocate time, And conditions on, now, we a be six But criteria focus X.X mix. market. and this when flow a act. there ODR. again than thus to just we'll still there repurchase sheet a pretty pursuing always it's restrictions will into have buy in But and did And challenges thinking to strategically. you conditions working the deal point where to We'll really maintain the always lot capital sales, we precedent but to discipline because very and tried and the We perhaps weigh in to we've market that. come around of too. not been I how the businesses have from see. clarity times to resources under some that pretty going use about to to need financially balancing for makes to of market capital both internal around, or we're times a And any

Richard Greulich

Thank you.

Operator

our session. to turn And the like back closing conclude any we to that, call with over management I question-and-answer remarks. And would for

Charlie Bacon

pipeline we number our that year what Just our really and we've the what things bright a for to today's about improvement we it. excited we're everybody about We're this comments excited morning. And the mentioned indicate this company. a of other said as in there's, We're joining executing do. want we us to we very We're going see And for improving. everyone. margin future for and were thank pretty strategy out, laid doing,

And to we forward the to So for interest. thank call. next your you talking quarterly look you on

Operator

And today's teleconference. concludes this

Thank disconnect You may this at have your a time. you your day. for wonderful lines now participation. And

Limbach (LMB) 14 May 212021 Q1 Earnings call transcript