• Concrete Pumping Holdings Reports Strong Second Quarter 2023 Results

    المصدر: Nasdaq GlobeNewswire / 08 يونيو 2023 15:05:00   America/Chicago

    DENVER, June 08, 2023 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for the second quarter ended April 30, 2023.

    Second Quarter Fiscal Year 2023 Highlights vs. Second Quarter of Fiscal Year 2022 (where applicable)

    • Revenue increased 12% to $107.8 million compared to $96.5 million.  
    • Gross profit increased 12% to $43.5 million compared to $38.9 million.  
    • Income from operations increased 27% to $13.2 million compared to $10.4 million.  
    • Net income was $5.6 million compared to $6.0 million.  
    • Net income attributable to common shareholders was $5.2 million or $0.09 per diluted share, compared to $5.6 million or $0.10 per diluted share.  
    • Adjusted EBITDA1 increased 7% to $28.8 million compared to $27.1 million, with Adjusted EBITDA margin1 at 26.7% compared to 28.0%.  
    • Amounts outstanding under debt agreements were $435.9 million with net debt1 of $429.3 million. Total available liquidity at quarter end was $100.4 million.

    Management Commentary

    “We delivered another strong quarter driven by continued growth in every segment, particularly double-digit increases in our U.K. operations and in Eco-Pan,” said CPH CEO Bruce Young. “In fact, Eco-Pan experienced another quarter of exceptional growth with a 26% increase in revenue as we continued to leverage the organic growth in our operations network and an expanded salesforce. Within our U.S. concrete pumping business, we continued to experience improvement in our commercial and infrastructure projects. However, above average precipitation and colder temperatures in most of our regions west of the Rockies, as well as Colorado, impacted sales as well as profitability given lower equipment utilization.

    “Looking ahead, we anticipate ongoing growth in our infrastructure and commercial end markets given our expanded footprint and momentum with heavy commercial projects. Our focus remains on optimizing end market mix to continue to deliver strong top and bottom-line growth as we move into the peak summer construction season. We will also continue to focus on maximizing shareholder value by leveraging our unique operational capabilities, high-value service offering, and opportunistic, accretive M&A while strategically balancing our leverage. And, our ABL upsize this month to $225.0 million and five year extended maturity further enhances our ability to pursue accretive investment opportunities and support our overall long-term growth."

    _____________
    1 Adjusted EBITDA, Adjusted EBITDA margin and net debt are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the non-GAAP financial measures used in this release and a reconciliation to their most comparable GAAP measures. As of the first quarter of fiscal 2023, adjusted EBITDA no longer includes an add-back for director costs and public company expenses.

    Second Quarter Fiscal Year 2023 Financial Results

    Revenue in the second quarter of fiscal year 2023 increased 12% to $107.8 million compared to $96.5 million in the second quarter of fiscal year 2022. The increase was attributable to strong growth across each of the Company’s segments as a result of organic growth from some higher volumes in certain regions coupled with improved pricing, as well as the acquisition of Coastal Carolina Pumping (Coastal) in August 2022. Revenue attributable to the Coastal acquisition was $5.0 million in the second quarter of 2023.

    Gross profit in the second quarter of fiscal year 2023 increased 12% to $43.5 million compared to $38.9 million in the prior year quarter. Gross margin was 40.3% compared to 40.4% in the prior year quarter. While there was stabilization of certain input costs, particularly in diesel fuel, this was offset by slightly lower equipment utilization as a result of inclement weather conditions affecting the fiscal 2023 second quarter, particularly in locations west of the Rocky Mountains.

    General and administrative expenses in Q2 were $30.3 million, up $1.7 million from $28.6 million in the same year-ago quarter as a result of higher labor costs related to recent acquisitions. As a percentage of revenue, G&A costs were 28.1% in the second quarter compared to 29.6% in the same year-ago quarter.

    During the three-month periods ended April 30, 2023 and 2022, the Company recognized gains of $1.2 million and $2.5 million, respectively, on the fair value remeasurement of its liability-classified warrants. The continued decline in the fair value remeasurement of the public warrants for both periods is due to the Company's share price being below the exercise price as the warrants get closer to expiring in December 2023.

    Net income in the second quarter of fiscal year 2023 was $5.6 million compared to $6.0 million in the second quarter of fiscal year 2022. Net income attributable to common shareholders in the second quarter of fiscal year 2023 was $5.2 million, or $0.09 per diluted share, compared to $5.6 million, or $0.10 per diluted share, in the prior year quarter.

    Adjusted EBITDA in the second quarter of fiscal year 2023 increased 7% to $28.8 million compared to $27.1 million in the prior year quarter. Adjusted EBITDA margin declined to 26.7% compared to 28.0% in the prior year quarter, primarily due to the severe winter weather impacts on operating leverage.

    Liquidity

    On April 30, 2023, the Company had debt outstanding of $435.9 million, net debt of $429.3 million and total available liquidity of $100.4 million.

    On June 1, 2023, the Company amended and upsized its ABL Facility to, among other things, (1) increase the maximum revolver borrowings available to be drawn thereunder from $160.0 million to $225.0 million and (2) extend the maturity of the ABL Facility to June 1, 2028 (a five-year extension from closing). The $65.0 million in incremental commitments included the introduction of PNC Bank N.A. providing a new commitment of $50.0 million and JPMorgan Chase Bank, N.A. increasing their existing commitment by $15.0 million.

    Segment Results

    U.S. Concrete Pumping. Revenue in the second quarter of fiscal year 2023 increased 9% to $78.4 million compared to $71.8 million in the prior year quarter. The increase was primarily due to revenue contribution in the second quarter of 2023 from the Coastal acquisition. Net income in the second quarter of fiscal year 2023 was $0.5 million compared to $1.7 million in the prior year quarter. Adjusted EBITDA was $17.1 million in the second quarter of fiscal year 2023 compared to $18.0 million in the prior year quarter.

    U.K. Operations. Revenue in the second quarter of fiscal year 2023 increased 13% to $15.2 million compared to $13.5 million in the prior year quarter. Excluding the impact from foreign currency translation, revenue was up 22% year-over-year. The increase was primarily attributable to pricing improvements. Net income in the second quarter of fiscal year 2023 improved to $0.9 million compared to $0.1 million in the prior year quarter. Adjusted EBITDA was $4.6 million in the second quarter of fiscal year 2023 compared to $3.8 million in the prior year quarter.

    U.S. Concrete Waste Management Services. Revenue in the second quarter of fiscal year 2023 increased 26% to $14.2 million compared to $11.3 million in the prior year quarter. The increase was due to organic growth and pricing improvements. Net income in the second quarter of fiscal year 2023 increased 89% to $2.7 million compared to $1.4 million in the prior year quarter. Adjusted EBITDA in the second quarter of fiscal year 2023 increased 39% to $6.5 million compared to $4.6 million in the prior year quarter.

    Fiscal Year 2023 Outlook

    The Company continues to expect fiscal year 2023 revenue to range between $420.0 million to $445.0 million, Adjusted EBITDA to range between $125.0 million to $135.0 million, and free cash flow2 to range between $65.0 million and $75.0 million.

    _____________
    2 Free cash flow is defined as Adjusted EBITDA less net replacement capital expenditures less cash paid for interest.

    Conference Call

    The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2023 results.

    Date: Thursday, June 8, 2023
    Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
    Toll-free dial-in number: 1-877-407-9039
    International dial-in number: 1-201-689-8470
    Conference ID: 13737461

    Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860. 

    The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1606786&tp_key=5a3a51cd75 and via the investor relations section of the Company’s website at www.concretepumpingholdings.com.

    A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through June 15, 2023.

    Toll-free replay number: 1-844-512-2921
    International replay number: 1-412-317-6671
    Replay ID: 13737461

    About Concrete Pumping Holdings

    Concrete Pumping Holdings is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan seeks to provide a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of April 30, 2023, the Company provided concrete pumping services in the U.S. from a footprint of approximately 100 branch locations across approximately 20 states, concrete pumping services in the U.K. from approximately 30 branch locations, and route-based concrete waste management services from 19 operating locations in the U.S. and 1 shared location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Company’s brand websites at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.

    Forward‐Looking Statements

    This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “outlook” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance, including the Company's fiscal year 2023 outlook. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the adverse impact of recent inflationary pressures, global economic conditions and developments related to these conditions, such as fluctuations in fuel costs and the ongoing war in Ukraine and the COVID-19 pandemic, on our business; the outcome of any legal proceedings or demand letters that may be instituted against or sent to the Company or its subsidiaries; the ability of the Company to grow and manage growth profitably and retain its key employees; the ability to complete targeted acquisitions and to realize the expected benefits from completed acquisitions; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission, including the risk factors in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and Form 10-Q/A. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

    Non-GAAP Financial Measures

    This press release presents Adjusted EBITDA, Adjusted EBITDA margin, net debt and free cash flow, all of which are important financial measures for the Company, but are not financial measures defined by GAAP.

    Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management also uses this non-GAAP financial measure to compare the Company’s performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and annual financial reports prepared for the Company’s board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Company’s ongoing operating results and in comparing the Company’s financial results with competitors who also present similar non-GAAP financial measures.

    Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, loss on debt extinguishment, stock-based compensation, other income, net, and other adjustments. Other adjustments includes the adjustment for warrant liabilities revaluation, extraordinary expenses and non-cash currency gains/losses. As of the first quarter of fiscal 2023, we have modified the method in which adjusted EBITDA is calculated by no longer including an add-back for director costs and public company expenses. Adjusted EBITDA in the three and six months ended April 30, 2022 is recast by $0.6 million and $1.3 million, respectively, for these expenses to reflect this change. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented. See below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP.

    Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor the Company’s leverage and evaluate the Company’s consolidated balance sheet. See “Non-GAAP Measures (Reconciliation of Net Debt)” below for a reconciliation of Net Debt to amounts outstanding under debt agreements calculated in accordance with GAAP.

    Free cash flow is defined as Adjusted EBITDA less net replacement capital expenditures and cash paid for interest. This measure is not a substitute for cash flow from operations and does not represent the residual cash flow available for discretionary expenditures, since certain non-discretionary expenditures, such as debt servicing payments, are not deducted from the measure. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor and evaluate the cash flow yield of the business.

    The financial statement tables that accompany this press release include a reconciliation of Adjusted EBITDA and net debt to the applicable most comparable U.S. GAAP financial measure. However, the Company has not reconciled the forward-looking Adjusted EBITDA guidance range and free cash flow range included in this press release to the most directly comparable forward-looking GAAP measures because this cannot be done without unreasonable effort due to the lack of predictability regarding the various reconciling items such as provision for income taxes and depreciation and amortization.

    Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Company’s business. Other companies may calculate Adjusted EBITDA, net debt and free cash flow differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.

    Contact:

    Company:
    Iain Humphries
    Chief Financial Officer
    1-303-289-7497    		Investor Relations:
    Gateway Group, Inc.
    Cody Slach
    1-949-574-3860
    BBCP@gateway-grp.com
      


     
    Concrete Pumping Holdings, Inc.
    Consolidated Balance Sheets
           
      As of April 30,  As of October 31, 
    (in thousands, except per share amounts) 2023  2022 
             
    Current assets:        
    Cash and cash equivalents $6,643  $7,482 
    Trade receivables, net  62,834   62,882 
    Inventory, net  6,349   5,532 
    Income taxes receivable  -   485 
    Prepaid expenses and other current assets  10,176   5,175 
    Total current assets  86,002   81,556 
             
    Property, plant and equipment, net  429,154   419,377 
    Intangible assets, net  129,835   137,754 
    Goodwill  222,434   220,245 
    Right-of-use operating lease assets  25,444   24,833 
    Other non-current assets  1,973   2,026 
    Deferred financing costs  1,437   1,698 
    Total assets $896,279  $887,489 
             
             
    Current liabilities:        
    Revolving loan $60,947  $52,133 
    Operating lease obligations, current portion  4,651   4,001 
    Finance lease obligations, current portion  113   109 
    Accounts payable  7,721   8,362 
    Accrued payroll and payroll expenses  11,959   13,341 
    Accrued expenses and other current liabilities  23,323   32,156 
    Income taxes payable  746   178 
    Warrant liability, current portion  1,302   - 
    Total current liabilities  110,762   110,280 
             
    Long term debt, net of discount for deferred financing costs  371,172   370,476 
    Operating lease obligations, non-current  21,069   20,984 
    Finance lease obligations, non-current  112   169 
    Deferred income taxes  76,125   74,223 
    Warrant liability, non-current  -   7,030 
    Total liabilities  579,240   583,162 
             
             
    Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of April 30, 2023 and October 31, 2022  25,000   25,000 
             
    Stockholders' equity        
    Common stock, $0.0001 par value, 500,000,000 shares authorized, 55,015,572 and 56,226,191 issued and outstanding as of April 30, 2023 and October 31, 2022, respectively  6   6 
    Additional paid-in capital  381,599   379,395 
    Treasury stock  (12,894)  (4,609)
    Accumulated other comprehensive loss  (2,498)  (9,228)
    Accumulated deficit  (74,174)  (86,237)
    Total stockholders' equity  292,039   279,327 
             
    Total liabilities and stockholders' equity $896,279  $887,489 
             


     
    Concrete Pumping Holdings, Inc.
    Consolidated Statements of Operations
           
      Three Months Ended April 30,  Six Months Ended April 30, 
    (in thousands, except share and per share amounts) 2023  2022  2023  2022 
                     
    Revenue $107,791  $96,482  $201,366  $181,930 
    Cost of operations  64,317   57,544   121,438   108,866 
    Gross profit  43,474   38,938   79,928   73,064 
    Gross margin  40.3%  40.4%  39.7%  40.2%
                     
    General and administrative expenses  30,258   28,567   57,299   55,308 
    Income from operations  13,216   10,371   22,629   17,756 
                     
    Interest expense, net  (7,348)  (6,346)  (14,219)  (12,608)
    Change in fair value of warrant liabilities  1,172   2,474   5,728   2,474 
    Other income, net  13   13   34   52 
    Income before income taxes  7,053   6,512   14,172   7,674 
                     
    Income tax expense  1,465   527   2,109   506 
    Net income  5,588   5,985   12,063   7,168 
                     
    Less preferred shares dividends  (427)  (427)  (868)  (868)
                     
    Income available to common shareholders $5,161  $5,558  $11,195  $6,300 
                     
    Weighted average common shares outstanding                
    Basic  53,329,576   53,901,278   53,467,897   53,782,345 
    Diluted  54,224,611   54,795,262   54,343,461   54,738,504 
                     
    Net income per common share                
    Basic $0.09  $0.10  $0.20  $0.11 
    Diluted $0.09  $0.10  $0.20  $0.11 
                     


     
    Concrete Pumping Holdings, Inc.
    Consolidated Statements of Cash Flows
        
      For the Six Months Ended April 30, 
    (in thousands, except per share amounts) 2023  2022 
             
    Net income $12,063  $7,168 
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
    Non-cash operating lease expense  2,317   1,134 
    Foreign currency adjustments  (1,106)  - 
    Depreciation  19,523   16,843 
    Deferred income taxes  1,128   236 
    Amortization of deferred financing costs  957   916 
    Amortization of intangible assets  9,647   11,471 
    Stock-based compensation expense  2,204   2,831 
    Change in fair value of warrant liabilities  (5,728)  (2,474)
    Net gain on the sale of property, plant and equipment  (640)  (910)
    Provision for bad debt  (70)  50 
    Net changes in operating assets and liabilities:        
    Trade receivables, net  867   (8,381)
    Inventory  (681)  (553)
    Prepaid expenses and other assets  (3,216)  (3,882)
    Accounts payable  (1,112)  (1,249)
    Accrued payroll, accrued expenses and other liabilities  (5,061)  (1,809)
    Net cash provided by operating activities  31,092   21,391 
             
    Cash flows from investing activities:        
    Purchases of property, plant and equipment  (34,745)  (60,332)
    Proceeds from sale of property, plant and equipment  4,416   4,636 
    Purchases of intangible assets  (800)  (1,450)
    Net cash used in investing activities  (31,129)  (57,146)
             
    Cash flows from financing activities:        
    Proceeds on revolving loan  174,504   179,933 
    Payments on revolving loan  (167,213)  (150,759)
    Purchase of treasury stock  (8,285)  (1,012)
    Other financing activities  (58)  (5)
    Net cash provided by (used in) financing activities  (1,052)  28,157 
    Effect of foreign currency exchange rate on cash  250   970 
    Net decrease in cash and cash equivalents  (839)  (6,628)
    Cash and cash equivalents:        
    Beginning of period  7,482   9,298 
    End of period $6,643  $2,670 
             


     
    Concrete Pumping Holdings, Inc.
    Segment Revenue
           
      Three Months Ended April 30,  Change 
    (in thousands) 2023  2022  $  % 
    U.S. Concrete Pumping  78,386  $71,767  $6,619   9.2%
    U.K. Operations  15,239   13,541   1,698   12.5%
    U.S. Concrete Waste Management Services  14,167   11,281   2,886   25.6%
    Corporate  625   625   -   0.0%
    Intersegment  (626)  (732)  106   -14.5%
    Total Revenue $107,791  $96,482  $11,309   11.7%


      Six Months Ended April 30,  Change 
    (in thousands) 2023  2022  $  % 
    U.S. Concrete Pumping $145,573  $134,837  $10,736   8.0%
    U.K. Operations  27,947   25,563   2,384   9.3%
    U.S. Concrete Waste Management Services  27,940   21,738   6,202   28.5%
    Corporate  1,250   1,250   -   0.0%
    Intersegment  (1,344)  (1,458)  114   -7.8%
    Total Revenue $201,366  $181,930  $19,436   10.7%
                     


     
    Concrete Pumping Holdings, Inc.
    Segment Adjusted EBITDA and Net Income (Loss)
           
      Net Income (Loss)  Adjusted EBITDA 
      Three Months Ended April 30,  Three Months Ended April 30,         
    (in thousands, except percentages) 2023  2022  2023  2022  $ Change  % Change 
    U.S. Concrete Pumping $450  $1,663  $17,140  $18,017  $(877)  -4.9%
    U.K. Operations  933   89   4,597   3,776   821   21.7%
    U.S. Concrete Waste Management Services  2,728   1,446   6,471   4,641   1,830   39.4%
    Corporate  1,477   2,787   625   624   1   0.2%
    Total $5,588  $5,985  $28,833  $27,058  $1,775   6.6%


      Net Income (Loss)  Adjusted EBITDA 
      Six Months Ended April 30,  Six Months Ended April 30,         
    (in thousands, except percentages) 2023  2022  2023  2022  $ Change  % Change 
    U.S. Concrete Pumping $(650) $961  $31,828  $32,508  $(680)  -2.1%
    U.K. Operations  833   (85)  7,783   7,062   721   10.2%
    U.S. Concrete Waste Management Services  5,540   3,194   13,018   9,552   3,466   36.3%
    Corporate  6,340   3,098   1,250   1,250   -   0.0%
    Total $12,063  $7,168  $53,879  $50,372  $3,507   7.0%
                             


     
    Concrete Pumping Holdings, Inc.
    Quarterly Financial Performance
                       
    (dollars in millions) Revenue  Net Income (Loss)  Adjusted EBITDA1  Capital Expenditures2  Adjusted EBITDA less Capital Expenditures  Earnings Per Diluted Share 
    Q1 2022 $85  $1  $23  $35  $(12) $0.01 
    Q2 2022 $96  $6  $27  $22  $5  $0.10 
    Q3 2022 $105  $13  $30  $19  $11  $0.22 
    Q4 2022 $115  $9  $36  $48  $(12) $0.14 
    Q1 2023 $94  $6  $25  $15  $10  $0.11 
    Q2 2023 $108  $6  $29  $16  $13  $0.09 

    1 Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” for a discussion of the definition of the measure and below for a reconciliation of the current period such measure to its most comparable GAAP measure.
    2 Information on M&A or growth investments included in capital expenditures have been included for relevant quarters below:
       *Q1 2022 capex includes approximately $19 million M&A and $2 million growth investment.
       *Q2 2022 capex includes approximately $11 million M&A and $5 million growth investment.
       *Q3 2022 capex includes approximately $7 million growth investment.
       *Q4 2022 capex includes approximately $31 million M&A and $13 million growth investment.
       *Q1 2023 capex includes approximately $3 million growth investment.
       *Q2 2023 capex includes approximately $6 million M&A and $1 million growth investment.

     
    Concrete Pumping Holdings, Inc.
    Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA
           
      Three Months Ended April 30,  Six Months Ended April 30, 
    (dollars in thousands) 2023  2022  2023  2022 
    Consolidated                
    Net income $5,588  $5,985  $12,063  $7,168 
    Interest expense, net  7,348   6,346   14,219   12,608 
    Income tax expense  1,465   527   2,109   506 
    Depreciation and amortization  14,721   14,236   29,170   28,314 
    EBITDA  29,122   27,094   57,561   48,596 
    Transaction expenses  24   20   27   38 
    Stock based compensation  1,064   1,351   2,204   2,831 
    Change in fair value of warrant liabilities  (1,172)  (2,474)  (5,728)  (2,474)
    Other income, net  (13)  (13)  (34)  (52)
    Other adjustments (1)  (192)  1,080   (151)  1,433 
    Adjusted EBITDA $28,833  $27,058  $53,879  $50,372 
                     
    U.S. Concrete Pumping                
    Net income (loss) $450  $1,663  $(650) $961 
    Interest expense, net  6,648   5,599   12,826   11,083 
    Income tax expense (benefit)  97   (64)  (292)  (703)
    Depreciation and amortization  10,592   9,880   20,966   19,688 
    EBITDA  17,787   17,078   32,850   31,029 
    Transaction expenses  24   20   27   38 
    Stock based compensation  1,064   1,351   2,204   2,831 
    Other income, net  (6)  (6)  (16)  (37)
    Other adjustments (1)  (1,729)  (426)  (3,237)  (1,353)
    Adjusted EBITDA $17,140  $18,017  $31,828  $32,508 
                     
    U.K. Operations                
    Net income (loss) $933  $89  $833  $(85)
    Interest expense, net  700   747   1,393   1,525 
    Income tax expense (benefit)  326   51   286   (30)
    Depreciation and amortization  1,849   2,026   3,676   4,011 
    EBITDA  3,808   2,913   6,188   5,421 
    Other income, net  (11)  (3)  (17)  (5)
    Other adjustments  800   866   1,612   1,646 
    Adjusted EBITDA $4,597  $3,776  $7,783  $7,062 

    (1) Other adjustments include the adjustment for warrant liabilities revaluation, restructuring costs, extraordinary expenses and non-cash currency gains/losses. As of the first quarter of fiscal 2023, we have modified the method in which adjusted EBITDA is calculated by no longer including an add-back for director costs and public company expenses. Adjusted EBITDA in the three and six months ended April 30, 2022 is recast by $0.6 million and $1.3 million, respectively, for these expenses to reflect this change.

           
      Three Months Ended April 30,  Six Months Ended April 30, 
    (dollars in thousands) 2023  2022  2023  2022 
    U.S. Concrete Waste Management Services                
    Net income $2,728  $1,446  $5,540  $3,194 
    Income tax expense  937   442   1,905   1,037 
    Depreciation and amortization  2,065   2,117   4,100   4,191 
    EBITDA  5,730   4,005   11,545   8,422 
    Other income, net  4   (4)  (1)  (10)
    Other adjustments  737   640   1,474   1,140 
    Adjusted EBITDA $6,471  $4,641  $13,018  $9,552 
                     
    Corporate                
    Net income $1,477  $2,787  $6,340  $3,098 
    Income tax expense  105   98   210   202 
    Depreciation and amortization  215   213   428   424 
    EBITDA  1,797   3,098   6,978   3,724 
    Change in fair value of warrant liabilities  (1,172)  (2,474)  (5,728)  (2,474)
    Adjusted EBITDA $625  $624  $1,250  $1,250 
                     


     
    Concrete Pumping Holdings, Inc.
    Reconciliation of Net Debt
                    
      April 30,  July 31,  October 31,  January 31,  April 30, 
    (in thousands) 2022  2022  2022  2023  2023 
    Senior Notes  375,000   375,000   375,000   375,000   375,000 
    Revolving loan draws outstanding  29,867   16,884   52,133   50,247   60,947 
    Less: Cash  (2,670)  (2,445)  (7,482)  (4,049)  (6,643)
    Net debt  402,197   389,439   419,650   421,198   429,304 
                         


     
    Concrete Pumping Holdings, Inc.
    Reconciliation of Historical Adjusted EBITDA
                       
    (dollars in thousands) Q1 2022  Q2 2022  Q3 2022  Q4 2022  Q1 2023  Q2 2023 
    Consolidated                        
    Net income (loss) $1,183  $5,985  $12,976  $8,532  $6,475  $5,588 
    Interest expense, net  6,261   6,346   6,517   6,765   6,871   7,348 
    Income tax expense (benefit)  (22)  527   2,030   2,991   644   1,465 
    Depreciation and amortization  14,080   14,236   14,190   14,957   14,449   14,721 
    EBITDA  21,502   27,094   35,713   33,245   28,439   29,122 
    Transaction expenses  21   20   20   259   3   24 
    Stock based compensation  1,480   1,351   1,333   870   1,140   1,064 
    Change in fair value of warrant liabilities  -   (2,474)  (7,420)  -   (4,556)  (1,172)
    Other expense (income)  (37)  (13)  (16)  (19)  (21)  (13)
    Other adjustments (1)  353   1,080   407   1,292   41   (192)
    Adjusted EBITDA $23,319  $27,058  $30,037  $35,647  $25,046  $28,833 

    (1) See note above.


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