LMB - Earnings call transcript Q2 2022

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Operator

Greetings. And welcome to Limbach Holdings’ Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure Group. your my of Jeremy now Equity the is to host, introduce Hellman It sir. you, Thank

You may begin.

Jeremy Hellman

results Form Thank everyone. June announced XXXX Yesterday, very XX, Limbach filed you much Holdings its and XXXX. second quarter for the XX-Q good morning, and ended its quarter

Form made will actual an XX-Q may differ Holdings. for results turn During call, to statements Charlie the XX-K call. contain President to Listeners or made and results risk the may from on Charlie. providing forward-looking any call. will current differ forecasts, market similar earnings cause statements call Chief those results Limbach forward-looking be annual over may and of statements the quarterly this on reviewing conditions. from the Executive Officer are to projections, the company during review and Please report Bacon, the earnings reports update during I Today’s factors and discussion ahead actual that, Form on reminded go the that With company’s

Charlie Bacon

two that split our ago. expect to several outstanding we a their between Acquisitions of Katz. everyone Financial and pleased goal start change employees and Chief With segments Capital goal thanking today Executive us. XX-XX me work to thanks and Operating all President joining ahead schedule. and for and commitment Matt We I'm to our Michael for our our set Vice years revenue that of achieving transformational we to undertook by of to our Markets, McCann; Jayme is Officer, I reach evolution Brooks; Officer, want morning report Chief the many of XXXX, a operating & by Good

back circle that me to Let shortly.

call. as like top over of be our continue ODR The their with $X.X working our of the to cash claim resolved generate the This this both quarter to of we of some adjusted moving Much segment segment operations had We a expect transformation currently to full in The for we that from EBITDA XX.X% year-end. revenue of term reduce results period an is business on contributed gross I our ODR our generating of range million, business in on XXXX, with fueling million, $XX that $XX the of our the million want with that meets year million same was year. last their We quarter one GCR capital. the in brings year for It's as second year. a free $XXX to Limbach's resolution become XXXX declined We've Cash as financial First, of the a deliver ODR the several claim our both guidance the quarter and compared debt to $X.X million we are additional total million of year. outcomes, to highlights exit share to growth is last you. though, we're excluding building last profit by million. that performance this flow resolved changes the even of on year to remain building the a bottom-line the I to $XX view mentioned $XXX Term higher. in to track and year Year-to-date, of XX.X% business to the $XX.X second our solid end acceleration and growth. in this $X.X expect this quarter. $X cash leader the will the by revenue the to majority factors. million million with revenue maximizing pattern, result year's and in of for the the percentage owners flows resulting total the prior outcomes, expecting half for provided to $X systems and claims write-up scheduled critical million in cash over million debt approximately full result, progress which ODR

are in prepared chain you work equipment, our mission-critical models, T&M maintenance will The larger remarks services to As they today, work. essential. health them our data to of wheelhouse. and care, customers' throughout prioritizing conditioning, ongoing business we've we hear and segment power seen Fundamentally, by right is the the inflation in ODR the reacted have of customers whether to operate pharmaceutical or which provide existing Many of our in demand air heat, down on are repair manufacturing. our for centers, laboratories project supply to issues water

to we profit GCR continue the segment, contributions. execution, improve gross generating solid Within

We are backlog. which and talent, remains leveraging construction at being into very demand on the bring projects selective our high we

the profits GCR We maximize percentage segment to revenue. annual expect to of the in impact the continuing within low single-digit effort our GCR in result contraction segment

level opportunities the risk-adjusted rewards turning the deliver we of appropriately down are that don't We talent that have. profitability

resources to our a annuity with focus to GCR streams. deploy facility which owners to new significant developing remain for turn to Although relationships is valuable income They opportunities leads the reason. in segment, ODR higher profit higher-margin us on provide access

expect our high as we revenue While approaching free low go-forward rate growth a improving toward consolidated cash year. continued net more rate year the basis, teens, with XX-XX, organic our positive expect growth is this this growth ODR exceptional exit and annual results. the track a from tracking to the flow currently out of both the normalized segment we our in revenue in an to split On we segments combination

Before quick Jake the of me reasons strategic market, which into quarterly the comment provide industrial let Marshall we we is expansion the a December. acquired our one numbers, on last dig into

Tennessee The seems of given Valley the new on-shoring in and and relocations As Marshall plant announcements we natural We to to abundant expansions that's electricity. particularly gas Jake including plant materials, and is market better where variety operates. comparatively raw the anticipated, industrial factors, encouraging. of including domestic a accelerating think and relevant access be cheaper frequent

lot Within silicon products facility specialty activity, industrial products expansion the Southeast one industries. $XXX prominent produce weeks, technology Chattanooga. also The the automotive, their for is Marshall's These a last most million to details multi-year solar, very the support to commenting geography hand a attractive customers up there's but an at of future medical produce finding but of quarter. Jake several announced and electronics plant in marketplace on announced are Matt acquisition our and growth. anticipated activity, be the on investment in With for the with which footprint will that, our industrial we provide to Jayme it Limbach's well the is promising could off Midwest, I'll match there. further

Jayme Brooks

Charlie. Thanks,

and detailed a our of release press our Form earnings financials. contain XX-Q Our review

grew and define driven ODR I'll from XX% million over prior the the in year focus revenue and business GCR up the as key and So fastest the from continues accelerate prior million, year. Large was quarter. $XX,XXX The $XXX.X my project quarter, which excess period. in to $X.X we the the up risk the large a rationalization reduce million $XX.X our areas. the first increase GCR revenue main some works, continued to for in work. for million change this $XX.X revenue second discussion quarter. profits. XX% from segment owner-direct was the the year projects in driver is down the project was of of was in XX.X% year $XX.X ago maximize quarter down on by Total compared of million, ago quarter Growth primarily to to intentional

XX% sequentially work. also and work as well We on a in T&M maintenance growth grew T&M solid experienced XX% revenues year-over-year basis. as

XX.X% the was down the in to the of and and in from to gross of For quarter year. quarter, on of consolidated XX.X% XX.X% second This The increased margin project ODR of margin was GCR the gross GCR focus project business to margin the XX.X%. to included gross second branch ticked of of the margin our XX.X% to for increased The QX XX.X% write-up last XXXX of and California and quarter reflects expected the up year prior range GCR quarter XXXX. settlement XX.X% addition pricing. The gross profit This in in of QX of ODR XX% in our selection margin quarter gross second segment. operations claim. our continued $X.X a last the of gross winding sequentially Southern in in Eastern XX% to our second compared due XX% margin related mix quarter million and for in Pennsylvania back a to also

project we As of driven in T&M previously, to substantial smaller opposed the maintenance portion as ODR said work will and over growth dollar, margin revenue larger higher by work. time, be a

our mature different in segment the with profitability that solid of experiencing growth dollars optimal large will business over project we're the weighted lines. towards between our Although, business, are our our this OTR and owners in lines as mix work. increase We we believe heavily time, achieve all relationships

compared relatively quarter quarter expense for quarter. SG&A Our flat the from increase to is was the million, the first year and million $XX.X prior in $XX.X an which

Second expect our expenses operations XXXX California segment SG&A our Concerning to with costs and associated impacted and Eastern by which million, reduction these we associated results This the this quarter respectively. compared taxes and the SG&A. operations QX year-to-date The end last before branch have in taxes the GCR both ongoing Pennsylvania, operations to year-to-date acquired Pennsylvania Eastern Marshall non-recurring to reduce and expense unfavorably substantially million and business Jake with to not SG&A impacted numbers quarter-to-date newly respectively. our California the GCR expenses income quarter-to-date million be the the segment XXXX, and of the winding $X.X progress of by down QX cost million, and income by in year. complete in non-recurring for income income before year's was unfavorably other SG&A $X.X entities, in closures included related $X.X Southern and efforts winding $X.X Southern down initiatives the

far space. work continue we good to expect pandemic employers, Regarding of the our a implementing going we wealth. into structure complete have annualized And to that we reduction square allowing footage reduce to XXXX initiatives, progress. our employees. the flexible been savings for year, many our need Based reduction responded $XXX,XXX we on Like is more of have by to from approximately able reductions office office-based this expense us for so make this

cash and sheet. balance to Turning the

the second operating statement by as cash Cash improvement activities on cash during we the the During in of year-to-date $XX.X of the flows. operating second which operating million, from million included saw a activities was cash activities sharp quarter, of quarter. $XX.X our reported improvement provided from

continued working The net was second The a on as our cash, factors continued operations we due focus and and in positions. management. business experienced we underbilling our capital of generated the cash to improvement quarter improvement of combination collections

of income flow CapEx. cash from net free which activities was $X.X operating $XXX,XXX million, This business non-cash lease $XXX,XXX of changes amortization, the quarter, operating capital plus $X.X primarily comprised compensation less the operating and is consists working depreciation expense For generated of of and before non-cash million. stock-based of

have million net $X.X of we underbilling were proceeds the and change million loan other for revolver quarter. total, have billing position add cash million cycles inclusive which debt generated In $XX.X performance reasonable capital notable opportunity to a was recorded start previously resolve in term There $X.X quarter. in repaid our by reduce and the as keep flow result the view second operating position cash $X.X $X.X portion. included to expenditures. in additive. from which back resolution. short-term no continue the Cash coming to strong than reported excess and a a we improvement million cash of of million, in the during $X.X mind, million through total project from $X.X required suggested reasons our the cash scheduled $X income, quarter $XX.X amount borrowed generated the the the business balance included the activities of receipt non-cash previously on life be a We the timing would claim we of That Also operating million claims. of or net to AR included ended quarter way and the debt. term of a considerations. million, from of proceeds with million claims XXXX from specific is monthly reduced us flow of with upon payments, subtract As the enabled for to amortization the recovery, during We cash cash sweep receipt This the principal

would make in our back on As EBITDA a below is the debt, loan any two a leverage payment. the to the trailing quarter, based required our net monthly result, which on claim times by ratio revolver in $XXX,XXX the year, of this balance $XX would bring down the of less to to other the million. $XX in Subsequent before of the payments adjusted $X.X term reduction balance By end July, of resolution we million million required XX-month amortization our term loan one term year and we million in end are years. outstanding than $XX.X paid represent

quarter, claim receive represent inflow mentioned gross settled to million settlement, As smaller in of some for noted this that $X.X the we We've claims, cash earlier, $X cash coming the outstanding business. during our million year-end. With before a of profit write-up. expect resulting into approximately we claims one potential significant time

we're some report front. So to success certainly happy this on

during two have We XXXX. claims resolved

right Each company. cash on with the this active we cannot operational to these time still they and the projects, going discuss forth But Beyond To received. claims Mike million balance about frame and which have actually sheet our using several additional of terms quarter debt, the the will represents are ability this pay we good debt. claims, additional claims back provide our $XX acquisitions continued and our to the coming value when now on a cash we claims very be now gross in resolve improvement year to key of the outstanding potentially cash I'll will potential performance, feel call pass this or in over of and in into conclude, when negotiation. fund and down highlights. of settlement our

Michael McCann

infrastructure Those building downtime. multiple vast proactive customer majority the focused across particularly solutions. base We're zero facilities maintenance it's bring focused growth, system seek our in nature where tend clients. and Fundamentally, become be us to given We our are long-term repair, critical building that on of lifetime can the committed building customers on is building of relationships. critical for value their building appreciate that sites, our deliver our rapid we both to very of to critical the value out With Jayme. owner we clear GCR ODR operate tolerance owner maximizing to the best and Thanks, systems facilities ODR are and owners forging customers.

our the resources wallet those look to with we we future, in As believe share deploy accounts. we expand can

bring Moving problems, as availability although Demand a this on supply to issue, is. to modest continues those issues. be may to equipment resolution driving supply chains, is a as an of slowdown the chain economic help much

existing owners However, elasticity. we demand to tend equipment less building which can also spending and has to capital benefit replacement defer point investment as and equipment, the maintenance much of

Turning calming Labor to conditions year, we earlier dynamic highs in the tight generally. seen the appear that to have remained the to field, supporting prices of far. does commodity start market their from be a so and the has in fall

field work limiting add the our to risk. direct to on strategy, on and continue We GCR while technicians own are personnel focused support we

both ODR accelerated robust Jamie and even remains cases. certain Charlie As noted, and in activity has

quarter. up XX.X% million of sales in $XX.X projects strong. from Sales were again last T&M ODR were quarter particularly ODR of Second year's second

ODR was from an million $XXX.X year-over-year, up backlog $XX.X XX, and ago, segment increase year a a June of XX.X% increase XX.X% million, As sequentially.

the building the year-to-date of XXXX. we the and start to revenue into for solid revenue the the us That year, We expect revenue focus of million. given quarter It's around end this in activity, deliver to of with segment with XXXX. So year-on-year coverage solid the GCR really provides we growth time ODR year and $XXX.X backlog through performance XXXX. ended when in on sales

above leads are expansion the to That the nine opportunities to and it's in still building months selective be We index which pipeline architects to to us index have see AIA building around interesting generally months six remaining for a later. means both. XX, good –

good the feel we outlook. far, So about

to Now I'll Matt. pass it over

Matt Katz

Thanks, Mike.

this we Speaking the now starting are business challenge underwriting, to volume that few see their to under now cycle, our the acquisition the approach the of our of last through been over the of get opportunities interesting yet actually to engage months, transactions, – the those the businesses and the effort takes and up we a them from times becomes given and feet ready get aren't aren't vagaries the leadership of to navigate Often, only at of following until pandemic but an want has it's that organized really at process explore perspective. just them team conservative to to apparent the businesses to not point, just while or owners information it scope curve.

deciding We've got of financial diligence certainty team, where persistent. and focus we're So a strategic we're performance, evaluating environment. underwriting prospecting constantly from good spend months like we a little and quieter generally close and perspective. and general, a The But and parameters summer our effectively, in good a time. are it's value

During the more is really extent, or these is no hasn't are away time more see changing months, action it this I same often dynamics That being where and smaller fewer is. Small for dynamic and doing but for of at navigating business rather them. that different. owners business business disposal, difficult said, tend soon. from are, anytime companies some market to owners this trying everywhere away. to harder year resources many their with just we it's And don't spend of very frustrating just really gone And the are that just

opportunities quarters to these two and field to capital, and resonate of if that administrative a impact. feels proposition with fine, operational pipeline familiar and with We're businesses might and who fine. next want has happy We're We'll to now, the great and and that from in if support carry value them quarter, fine that's our we partnership well when reshuffle. the to maximum over to reshuffling juggling deploy we it providing been thoughtfully that's discriminating Charlie? So markets. quarter, do We've that means the means it great culture us. very continue day platform. like leaders, local too. of a If buyers, a in continues one And with join that's and

Charlie Bacon

As for adjusted to our I the in to $XX million of $XX stated in $XXX million. earlier, of we range guidance to be million $XXX and the range expect reiterating EBITDA revenues be year. We are currently to million the

guidance, $XXX While composition, more the of want of the transition. the be comments detail currently range million million a our revenue not in in around pace the $XXX in given to also the ODR GCR share range formal We're million. range our $XXX ODR the of on revenue part $XXX I to of expecting million to to little

$XXX a delivered year, As ODR reminder, we last million of revenue.

to allocation. Turning capital

committed the include are our and transformational executing to and acquisitions, continue targets, discussions dollars. growth strategy objectives. delivering These with achieving Board allocation we strategies of discussions to growth growth initiatives We and on capital our application general SG&A those to on organic appropriate financial have

We all repurchase are of the actual evaluated share and members actively the to during also program. strategy. to share program. repurchasing available have I shares repurchase the Board shares trading support periods. continue is feasibility our liquidity purchasing shares of that given the float market evaluate our have program growth a the repurchase the to note of best undervalued. capital continued that will members of our in open A team stated, we shares With want and certainly The that of We liquidity. executive been use to and consider needs execution the mechanical believe

macroeconomic comments, for I'd environment. mentioned at like prepared operationally equipped what on regards well With technically, a to now and slowdown, take Mike both and Limbach to Before in touch economic recession and on wrapping the us, financially. any market your is least to up earlier

change to a continue generation. rationalized few our profitability execution, business, the plan. better undertaken that leading cash business, we've much deliberately years, successfully Over to our execute and GCR we past transformational and We in

you resulting OTR and not Jayme serves have debt, continue flow growth, those off environment. growing our questions. and evolving the Diverse, building cash businesses. being positioned us environment. to essential balance customers, market has to in in with our us systems are diversity to current essential, With critical customers We in as strategy our economic words segment, invested sectors, our in mention in this to building noted, that, in their about improvement we'll form geography transformational which paying that mind Please well the in reduce in to evolving our our keep segment allowed sheet, our view current relatively the think take investments OTR we their The as Limbach. these think operating higher-margin underlevered and that accelerated your of for well owner

Operator

Thank you.

conducting a be Thank Instructions] question-and-answer will We [Operator session. now you.

from Street with question with the Rob proceed question. Lake of Our your first Capital. comes line Please Brown

Rob Brown

good morning. Hi,

Charlie Bacon

morning, Rob. Good

Rob Brown

to the further maintenance. little shift on A color

trend think business. that talked see ODR about maintenance in for or you at that you I on point has how the How grown? -- the the the And side? that that this in do line

Charlie Bacon

grow And really base, with ways, maintaining and to bringing there's the components we're focus sales The maintenance that similar that and two the maintenance part hear is to trending going the we're is what I we Rob, on actual the share. wallet to continue the customers expand base continues but the other to which maintain contract, to contracts. obviously, have One in existing as you also we new two refer of that to to on and to have And is year, consider. that good. customers last

customers the at direct perspective to return how owner those where can of And account to X,XXX can over have kind from we go with we we of customers them. that portfolio. maximize down those gets really on and within also with planning say, else looking people, we're our it just people So customers an return

materialize. and to So to we're it the invest more actually, see in well, like growth it's growth with pleased We'd we see but it, appropriately gone continue that base stands. to where really

Rob Brown

on of see indications continuing for is that overall. of about talked the you do for in end? the are coming of demand think fairly pretty you any strong? things environment, sort horizon just you I the then And the how positively see And kind the past softness Great. demand now Okay. or sort quarter Do

Charlie Bacon

off, research market we're let not we laboratories we letting a data entree that see broader our don't And industrial centers, way, commercial sectors, development, seeing and primary and Rob, pretty any in and that's healthcare, hot. our in up.

that's about us. think comment my We're expansion all -- a looking the being further plants expansion think industrial around fairly bringing what that see a And to market you to And there the into If pretty Midwest, quite out planned. that's I few it's for announced, for is the being activity us. sector. exciting future plant there's

So sectors, particular non-primary sectors, commercial And optimistic On perspective, expansion. buildings have strong our particular maintenance we within upon. buildings. call and that But -- what's so what to -- secondary buildings, those isn't I'm very from which be including about sectors. those or and work T&M all those with smaller maybe our saw dependent all CapEx interesting, I'll It's office a not with those our buildings expanding. so going project them, -- maintained we're to a be

on So sectors revenue nice and secondary right continue now, again, flow. give I'm pretty to our the optimistic us primary sectors

Rob Brown

turn I'll over. you. Thank it Okay.

Charlie Bacon

Rob. Thanks,

Operator

Please with comes from Hutton. Instructions] question Our with proceed Chip line next question. the of your [Operator Moore EF

Chip Moore

Good morning. Thanks questions. for taking the

Charlie Bacon

morning, Good Chip

Chip Moore

percentage goal up. -- sooner gave hold to the and these you're Great in guidance that higher than that Charlie. Hi, Clearly, trends exiting XX-XX about your year get acceleration you XXXX, talked going obviously, to you ODR-- there. some us see some

bit. to look talked about some as also You out we normalization think a sort of about

help maybe as about how XX-XX about think dynamics Just those we that that of think split some us evolves. and

Charlie Bacon

one question, quite couldn't of the is your point Chip, I it. Rob, I'm so sorry, hear this

Chip Moore

that split, that growth. just it-- really next of it looks And hitting just like to comments just there, going hit year about your Yes, you're XX-XX sooner accelerating on normalization growth and right balancing some or sort maybe about than XXXX. also going then really

Charlie Bacon

under of share. kind doing thought, in terms we're this use that's the of account management accelerated I called now. year dynamic see. actually today, low comments use with owners teens we the state. wallet where infrastructure new a But which that though growth this seeing we more right have mentioned contract the clear this operate I to kind I their the my that words We adding need it's to course, we very we us to knew really that. But liking now work, giving were was company expanding more we're acceleration. is tied capital It's their that's doing here We're they're critical that at and We're Yes. to growth and interesting we're And the what's seeing really care and cost than better become really these future with expansion excited focused businesses. with of the happened words think about exciting always more else And today. it's in just what customer with the that ODR. prepared customers is customers we're our can ones. to absolutely go of My is program They're us of they're our of of on us. appropriate us remarks What

XXXX see is to at But the be or low to now, to low it look to that interesting even modeling to it some give better? guidance appropriate trying it's the So right teens is going we're into XXXX. teens would be for going

Chip Moore

owner if back more I think we split, Got potentially of pipeline, that it. about that terms us Is it skews more something get I M&A, in assume there sooner as direct. could well. that to And guess, so XX-XX that

Charlie Bacon

Matt, do that? you want to comment on

Matt Katz

Sure. Chip, quarter where or today actually overwhelmingly with somewhere the might been profile have XX-XX. Limbach and between target reasonably tends is to of skew it doesn't of universe ODR, sort typically skew XX-XX consistent the last

tends than we to difference I of perform locations. what very some sophisticated revenue in GCR that big think different more the our might those in look businesses, GCR is

work and in they've million, a $XX GC million been university those middle with doing the companies that's And work We everybody. for health so instead be facilities works of and $XX a projects. There million, time. a relationship long large to GCR finding $X.X for of a happens and got book business care see target just that's $XXX,XXX, $X in million the

they've And do. rolled the about so, and that never their they with business that structure it. way of really make off They've money we thought good

that in why facility, that a And of healthcare so, asked. sort about when anyone's have the we time they're first conversation GC working for really it's

– there's that to contractual general, a think, I of an a opportunity shift profile a course next lower, to but closing. the the but does there, little sometimes ODR, XX% with that months relationship to and over So, somewhere sometimes XX little businesses between post be XX% to tend the path in XX the accelerating of higher,

Chip Moore

seeing. on commentary like the guess right, your I'm just the seen some That's or you're helpful, what Inflation but that for Have to want trends well Perfect. – Reduction do And I have from feel into you the sounds Act, Matt. CHIPS don't foresee debating active think me. the about it I tailwinds potential we defines maybe good thinking and portfolio you of back. one you get infrastructure some Act, that pretty legislative, recession, you broader that?

Jayme Brooks

of little we like they relationship and And at customer I them care We're with view point have I the keep Mike customers. we it's to look toured in specifically samples as I because is they reason and me. to what all out because very they all hello more They're downturn, the said happening a they haven't me and the a and units through our of giving The current reason let mission-critical I went at charts. actually you found we named that which them, they be this back the off their individuals interesting also we There's to technicians. face-to-face, our of and of our those going maintain of our having work. this, might exception When a is customers. bringing back with what business such over past each with pleased to and really be become keep key very situation, pandemic. economic not very, our location an us clear and Jordan the all meetings, two one while plan type have the you the any every And facilities. more letup, to of about absolutely met of that's And up month. by bit. and with months I actually But strategic reinforcing stopped employees later done one it

not great And a the going to get had. think but yet. meetings more that into we I'm were had of details be So I lot there saw, some to we there's all there what

for I account customers a out lot can else with growth we multisite there talk really management when figuring more again, us. and about there's where these So go

the Now front. that's on ODR

for the mode on is pretty to continue all the geopolitical right side, flow nine going numbers, when On still looked there's through think on we're I coming expect the set in with [ph] there's of to the us, AIA GCR six and the Index, for there's still that be along the what with onshoring could that to expansion company they're We the robust to to last in the opportunity look industry be Southeast I that revenues studying and the to we we're expansion lot growth months an still opportunities out a namely on. Add sector, So a as Maybe. and forward. of at, focused which going cool producing to going terms us But Midwest. think our data GCR around see industrial at relationships, of in we of going globe, there's future? will the the and now, right? some which matters opportunity other

good So the we question? Chip, answers stand. hope I about where We're that feeling

Chip Moore

appreciate great you No, very it. that's Thank color. I much.

Charlie Bacon

Thanks, Chip.

Operator

of question. proceed Please Investors. from the Jon line your Meadow comes with question Old with Long next Our

Jon Old

morning, Good congrats a great Thanks quarter. everyone. and on

Charlie Bacon

you. Thank morning. Good

Jon Old

estate branch real other branches decline highlight Yeah, Jayme, L.A. I and settles cost-saving the terminations, more should dust other in number sort wonder some all this year, through of elevated that and real roughly? it's you the things. of get once Obviously, that -- where if we a should because spending. just when the in lease through estate But settle those little settle with initiatives, of, Where could in? SG&A,

Jayme Brooks

Yes.

So XX.X% between over revenue. to run will the we're long-term, that anticipating of the SG&A really XX%

transition, get term. once in we expect settle to we kind through this there So the long of

Jon Old

receive million, Okay. of about of that as $X Great. what is going that to curiosity, on total And curiosity? of what Thanks. just the amount claims, face a percentage out we're --

Jayme Brooks

then and end to of scheduled did So additional be by we the two received this is receive the year.

Jon Old

of Right. the… But

Jayme Brooks

just percentage going Then into over that million, get so our of exceed the that actually through. negotiations we detail because the total don't of claims we're $XX what

Jon Old

Okay. Got you.

Thanks. Okay.

Okay. That very from was it Thanks much. me.

Jayme Brooks

Thank you.

Charlie Bacon

you. Thank

Operator

with Melas from proceed George Management. your comes next Our MKH with question Please question.

George Melas

Thank you. everybody. Good morning,

are housekeeping all to they questions. GCR? Just restructuring related charges, The sort a few, of,

Jayme Brooks

Yes.

George Melas

Okay. And…

Jayme Brooks

have And be we clear. property just

reducing see the footprint but space. does well, office to charges those we're So as our so you'll EBITDA adjusted

George Melas

I'm of, bucket Okay. not sort kind you they to in some It but mid-GCR, of there. less more, sure both? you I meant it be it be or should Jayme that that, corporate are understood what is -- it reduce allocated should as

Jayme Brooks

Yes.

of going to and both part to our allocate we both be overheads it's ODR. because GCR So

footprint, bring the remote of able of square work people of to to because down that the coming is the we we're our as bringing -- because our being of time office down. part focus footage we're down and it So out moving

see you'll perspective. that from it separate So

George Melas

Pennsylvania parse one things? Okay. how is that much X.X% Is California, there how the a is And on then rate other in And to restructuring? Southern the hand? year-to-date Eastern of much

Jayme Brooks

Yes.

you our So actually for release. that's look the table do year, at EBITDA adjusted in earnings the

can carve the outside or -- we a you carve adjustments SoCal there, at It's see just we -- like -- total out bucket. just and You'll EPA. don't of don't out

for $X.X for million was three restructuring months, the it So charges.

as other months. and So business for the also as that SoCal restructuring then the million then $X.X initiatives, that Pennsylvania six GCR and Eastern and cost-saving includes was well

George Melas

Okay.

But billing right billing, And you in that remain Great. of basically of that X one expect now. general or a sort do question a zone relatively -- it How net think fairly should years. have you the million. Is has cash like think about under Okay. couple the as in of billing last just huge should of neutral then had seems flat, that it and a because flow? it fluctuation over are impacts under something you I

Jayme Brooks

real quick. I can one that take George,

look we more be we're -- as and the to stable an to perspective on to that our billing As down. tends we at up tends forward the ODR depending we’re in What the transformation from the of GCR is go to be looking business, cycle look forward.

is to our time. going So really I think shift continue we trend over as towards this

George Melas

$XX,XXX, ODR much from on billing, billing pretty are because you Okay. And under flat $XX,XXX, basis, in much are are the just if a you zone over neutral pretty to always on projects ODR? pretty understand, like in, an

Jayme Brooks

in thing the We in us fluctuations is that's expect from arrangement, the From beneficial with owner-direct. money an flows a less a that to to an owner-direct us, money lot one flows the directly us. really GCR perspective, relationship our owner-direct type to owner GCR to

built between inefficiencies there's nice is way to inherently, collect fluctuations, we So owner-direct less and the necessarily their no what's in us quicker. some expect, money about that's

George Melas

Thank Okay. Fantastic. Great. you very much.

Jayme Brooks

Thanks, George.

Operator

no turn comments. questions have further We over the back floor now I this time. would at to for like management closing to

Charlie Bacon

of for forward very everybody us you which the growth year. next about look our We're quarter pleased very the than thank accelerated We're to sooner our and achieve expect expected, how we progress you Well, today. overall to this excited talking with great. joining quarter. XX:XX is We to ODR mix

have If any Katz. Investor with follow-up you. Bye-bye. directly with other or you our questions, please Relations Matt group Thank

Operator

this and teleconference. today's conclude gentlemen, Ladies does

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

Limbach (LMB) 10 Aug 222022 Q2 Earnings call transcript