UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): June 09, 2020 

 

 


 

 

CONCRETE PUMPING HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 


 

 

Delaware

001-38166

83-1779605

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

500 E. 84th Avenue, Suite A-5

Thornton, Colorado 80229

(Address of principal executive offices, including zip code)

 

Registrant’s telephone number, including area code: (303) 289-7497

N/A
(Former name or former address, if changed since last report)

 

 


 

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

BBCP

The Nasdaq Capital Market

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☑

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On June 9, 2020, Concrete Pumping Holdings, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended April 30, 2020. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

 

The information in this Item 2.02, including Exhibits 99.1 and 99.2, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

The following exhibits are being filed herewith:

 

Exhibit

No.

 

Description

99.1

 

Press Release dated June 9, 2020.

99.2

 

Investor Presentation dated June 9, 2020.

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

CONCRETE PUMPING HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ Iain Humphries

 

 

Name: Iain Humphries

 

 

Title: Chief Financial Officer and Secretary

 

 

 

Dated: June 9, 2020

 

 

 

 
ex_189736.htm

Exhibit 99.1

 

 

Concrete Pumping Holdings Reports Strong Second Quarter Fiscal Year 2020 Results

 

DENVER, CO – June 9, 2020 – Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping services and waste management services in the U.S. and U.K., today reported financial results for its second fiscal quarter ended April 30, 2020.

 

Second Quarter Fiscal Year 2020 Summary vs. Second Quarter of Fiscal Year 2019

 

 

Revenue increased 19% to $74.0 million.

 

Gross margin increased 370 basis points to 43.0%.

 

Net loss available to common shareholders was $59.4 million or $(1.13) per diluted share versus a net loss of $10.1 million or $(0.35) per diluted share.

 

o

The second quarter of 2020 included a $57.9 million non-cash goodwill and intangibles impairment charge due to the COVID-19 impact on the Company’s market capitalization.

 

o

Excluding the goodwill and intangibles impairment charge, net loss to common shareholders was $3.9 million or $(0.08) per diluted share.

 

Adjusted EBITDA1 increased 29% to $23.5 million with Adjusted EBITDA margin1 up 240 basis points to 31.8%.

 

o

51% Adjusted EBITDA growth in the U.S. Concrete Pumping segment on a 35% increase in revenue.

 

o

36% Adjusted EBITDA growth in the U.S. Concrete Waste Management Services segment on a 23% improvement in revenue.

 

o

Adjusted EBITDA for the U.K. Operations segment was down 38% on a 34% reduction in revenue due to COVID-19-imposed construction site closures.

 

Management Commentary

 

“As indicated in our second quarter pre-announcement and further supported by today’s strong results, our business has shown resilience amongst the COVID-19 pandemic, highlighting the agility of our operations and largely essential nature of our work,” said Bruce Young, CEO of CPH. “During this time, we have prioritized the safety of our employees while continuing to deliver exceptional service that our customers demand. We also continue to demonstrate the attractiveness of our business model with second quarter Adjusted EBITDA growth well outpacing our revenue growth. This has allowed us to reduce our leverage while taking other proactive measures to enhance our liquidity.

 

“During the second quarter, we reduced net debt2 by approximately $20 million compared to the end of the first quarter of fiscal 2020 and instituted various cost saving and cash preservation measures to increase available liquidity to $33 million as of April 30th. These included the suspension of uncommitted 2020 capital expenditures and utilizing our roughly 70% variable cost structure to scale back expenses in markets with softer demand. The combination of these measures, along with our healthy operating cash flow and no near-term debt maturities, has us managing our business from a position of strength during these uncertain times.

 

 


1 Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to its most comparable GAAP measure.

2 Net debt is a non-GAAP financial measure. See Non-GAAP Financial Measures below for a discussion of the definition of net debt and a reconciliation to its most comparable GAAP measure.

 

 

“It is important to note that our strong second quarter results were achieved despite COVID-19-imposed construction site shutdowns, primarily in our U.K. and Seattle markets, which partially offset our 19% revenue growth. In the past several weeks, however, these markets have begun to recover. In particular, Seattle is back to pre-COVID-19 revenue levels while our U.K. operations have rebounded from 25% to 60% of pre-COVID-19 revenue levels. We are closely monitoring the velocity of our job volume in all of our markets and are cautiously optimistic in positive demand trends continuing. Nevertheless, we believe the swift actions we have taken in response to the current environment will maximize our financial strength in support of our long-term strategy to drive shareholder value.”

 

Second Quarter Fiscal Year 2020 Financial Results

 

Revenue in the second quarter of fiscal year 2020 increased 19% to $74.0 million compared to $62.0 million in the second quarter of fiscal year 2019. The increase was largely attributable to the acquisition of Capital Pumping in May 2019. In addition, robust organic growth in many of the Company’s existing core markets in both segments in the U.S. was mostly offset by a decline in revenue in the U.K. Operations segment due to COVID-19-imposed construction site closures.

 

Gross profit in the second quarter of fiscal year 2020 increased 31% to $31.9 million compared to $24.4 million in year-ago quarter. Gross margin increased 370 basis points to 43.0% compared to 39.3% in the year-ago quarter. The increase in gross margin was primarily due to the post-acquisition contribution from Capital Pumping, more favorable fuel pricing and better procurement costs.

 

General and administrative expenses in the second quarter of fiscal year 2020 were $26.4 million compared to $21.9 million in the year-ago quarter. The increase was largely due to the acquisition of Capital Pumping, which drove higher amortization of intangible assets expense of $1.6 million and headcount growth, along with $1.0 million in higher stock-based compensation expense as a result of a stock grant in April 2019. Excluding amortization of intangible assets and stock-based compensation expense, G&A expenses were up 13%. As a percent of revenue, general and administrative expenses were 35.6% compared to 35.3% in the year-ago quarter.

 

Net loss available to common shareholders in the second quarter of fiscal year 2020 was $59.4 million or $(1.13) per diluted share compared to a net loss of $10.1 million or $(0.35) per diluted share in the second quarter of fiscal year 2019. Net loss attributable to common shareholders in the second quarter of 2020 included a $57.9 million non-cash goodwill impairment charge, which was required due to the COVID-19 impact on the Company’s market capitalization.

 

Adjusted EBITDA in the second quarter of fiscal year 2020 increased 29% to $23.5 million compared to $18.2 million in the year-ago quarter. Adjusted EBITDA margin increased 240 basis points to 31.8% compared to 29.4% in the year-ago quarter. The increase in revenue, combined with a 370 basis point increase in gross margin, were the primary factors responsible for the strong growth in Adjusted EBITDA.

 

Liquidity

 

At April 30, 2020, the Company had net debt of $412.8 million and total available liquidity of $33.1 million. On a sequential basis, net debt improved by $20.1 million from the first quarter of fiscal 2020.

 

 

 

Segment Results

 

U.S. Concrete Pumping.  Revenue in the second fiscal quarter increased 35% to $57.5 million compared to $42.5 million in the year-ago quarter. The incremental benefit of the Capital Pumping acquisition, which added additional pumping capacity in Texas, represented $12.0 million of the increase. Excluding the contribution from Capital Pumping, revenue on an organic basis improved 7% over the previous year due to notable improvements in most markets. Adjusted EBITDA in the second fiscal quarter increased 51% to $16.3 million compared to $10.8 in the year-ago quarter due to post-acquisition contributions from Capital Pumping, better fuel pricing and procurement costs.

 

U.K. Operations. Revenue in the second fiscal quarter was $8.4 million compared to $12.7 million in the year-ago quarter. The decline was largely attributable to COVID-19-imposed construction site shutdowns in the month of April. Adjusted EBITDA in the second fiscal quarter was $2.5 million compared to $4.1 million in the year-ago quarter primarily due to the decline in revenue.

 

U.S. Concrete Waste Management Services. Revenue in the second fiscal quarter increased 23% to $8.3 million compared to $6.8 million in the year-ago quarter. The increase was driven primarily by robust organic growth and improving operational effectiveness across a majority of the markets served. Adjusted EBITDA in the second fiscal quarter increased 36% to $4.1 million compared to $3.0 million over the year-ago quarter, with the increase primarily attributable to the strong revenue growth.

  

Fiscal Year 2020 Outlook

 

As previously reported in its May 11, 2020 second quarter results pre-announcement, CPH believes it is currently well-positioned to navigate the current COVID-19 environment and is fully prepared to leverage an economic recovery. Given the heightened uncertainty about the duration and timing of the economic recovery associated with the pandemic, the Company has withdrawn its 2020 financial outlook provided on January 14, 2020.

 

Conference Call

 

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

 

Date: Tuesday, June 9, 2020

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: 13704097

 

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 here 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 30, 2020.

 

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13704097

 

 

 

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 substantial 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 provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of April 30, 2020, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 28 locations, and route-based concrete waste management services from 16 locations in the U.S. and 1 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.

 

 

Presentation of Predecessor and Successor Financial Results

 

As a result of the business combination between our predecessor, Industrea Acquisition Corp., and the private operating company formerly called Concrete Pumping Holdings, Inc. (the “Business Combination”), the Company is the acquirer for accounting purposes and CPH is the acquiree and accounting predecessor. The Company’s financial statement presentation distinguishes the Company’s presentations into two distinct periods, the period up to the Business Combination closing date (labeled “Predecessor”) and the period including and after that date (labeled “Successor”). The Business Combination was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. As a result of the application of the acquisition method of accounting as of the effective time of the Business Combination, the accompanying Consolidated Financial Statements include a black line to distinguish the results for Predecessor and Successor reporting entities shown, as they are presented on a different basis and are therefore, not comparable.

 

 

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 their 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,” 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. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the 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 outcome of any legal proceedings that may be instituted against the Company or its subsidiaries; the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably and retain its key employees, and realize the expected benefits from the acquisition of Capital Pumping; 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. 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

 

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. Adjusted EBITDA is not pro forma for acquisitions. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented.

 

See “Non-GAAP Measures (Adjusted EBITDA)” 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.

 

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 and net debt differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.
 

As the underlying business and financial results of the Successor and Predecessor entities are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination, management has combined the first quarter 2019 results of the Predecessor and Successor periods for comparability in certain tables below. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, the tables below present the non-GAAP combined results for the first quarter of 2019.

 

Contact:

 

Company:

Iain Humphries

Chief Financial Officer

1-303-289-7497

Investor Relations:

Gateway Investor Relations

Cody Slach

1-949-574-3860

BBCP@gatewayir.com 

 

 

 

Concrete Pumping Holdings, Inc.

     

Consolidated Balance Sheets

     

 

   

Successor

   

Successor

 
   

April 30,

   

October 31,

 

(in thousands, except per share amounts)

 

2020

   

2019

 

ASSETS

               
                 

Current assets:

               

Cash and cash equivalents

  $ 18,048     $ 7,473  

Trade receivables, net

    41,739       45,957  

Inventory

    5,094       5,254  

Income taxes receivable

    421       697  

Prepaid expenses and other current assets

    6,967       3,378  

Total current assets

    72,269       62,759  
                 

Property, plant and equipment, net

    307,113       307,415  

Intangible assets, net

    199,601       222,293  

Goodwill

    222,475       276,088  

Other non-current assets

    1,839       1,813  

Deferred financing costs

    875       997  

Total assets

  $ 804,172     $ 871,365  
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

               
                 

Current liabilities:

               

Revolving loan

  $ 39,211     $ 23,555  

Term loans, current portion

    20,888       20,888  

Current portion of capital lease obligations

    94       91  

Accounts payable

    7,220       7,408  

Accrued payroll and payroll expenses

    9,150       9,177  

Accrued expenses and other current liabilities

    20,642       28,106  

Income taxes payable

    1,148       1,153  

Deferred consideration

    -       1,708  

Total current liabilities

    98,353       92,086  
                 

Long term debt, net of discount for deferred financing costs

    352,448       360,938  

Capital lease obligations, less current portion

    430       477  

Deferred income taxes

    65,335       69,049  

Total liabilities

    516,566       522,550  
                 
                 

Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of April 30, 2020 and October 31, 2019

    25,000       25,000  
                 

Stockholders' equity

               

Common stock, $0.0001 par value, 500,000,000 shares authorized, 58,221,934 issued and outstanding as of April 30, 2020 and October 31, 2019, respectively

    6       6  

Additional paid-in capital

    353,339       350,489  

Treasury stock

    (131 )     -  

Accumulated other comprehensive income

    (2,813 )     (599 )

(Accumulated deficit) retained earnings

    (87,795 )     (26,081 )

Total stockholders' equity

    262,606       323,815  
                 

Total liabilities and stockholders' equity

  $ 804,172     $ 871,365  

 

 

 

 

Concrete Pumping Holdings, Inc.

 

Consolidated Statements of Operations

 

                                           

S/P Combined

 
   

Successor

   

Predecessor

   

(non-GAAP)

 

(in thousands, except share and per share amounts)

 

Three Months

Ended April 30, 2020

   

Three Months

Ended April 30, 2019

   

Six Months

Ended April 30, 2020

   

December 6,

2018 through April 30, 2019

   

November 1,

2018 through December 5, 2018

   

Six Months

Ended April 30, 2019

 
                                                 

Revenue

  $ 74,041     $ 61,988     $ 147,980     $ 95,958     $ 24,396     $ 120,354  

Cost of operations

    42,174       37,628       83,965       58,731       14,027       72,758  

Gross profit

    31,867       24,360       64,015       37,227       10,369       47,596  

Gross margin

    43.0 %     39.3 %     43.3 %     38.8 %     42.5 %     39.5 %
                                                 

General and administrative expenses

    26,381       21,853       52,988       35,534       4,936       40,470  

Goodwill and intangibles impairment

    57,944       -       57,944       -       -       -  

Transaction costs

    -       1,282       -       1,282       14,167       15,449  

Income (loss) from operations

    (52,458 )     1,225       (46,917 )     411       (8,734 )     (8,323 )
                                                 

Interest expense, net

    (8,765 )     (9,318 )     (18,268 )     (14,910 )     (1,644 )     (16,554 )

Loss on extinguishment of debt

    -       -       -       -       (16,395 )     (16,395 )

Other income, net

    34       20       103       31       6       37  

Loss before income taxes

    (8,731 )     (9,298 )     (18,165 )     (14,879 )     (18,033 )     (32,912 )
                                                 

Income tax expense (benefit)

    (2,221 )     1,572       (3,368 )     (1,193 )     (4,192 )     (5,385 )

Net loss

    (58,968 )     (9,645 )     (61,714 )     (13,275 )     (22,575 )     (35,850 )
                                                 

Less preferred shares dividends

    (470 )     (434 )     (943 )     (703 )     -       -  

Less undistributed earnings allocated to preferred shares

    -       -       -       -       -       -  
                                                 

Loss available to common shareholders

  $ (59,438 )   $ (10,079 )   $ (62,657 )   $ (13,978 )   $ (22,575 )   $ (35,850 )
                                                 

Weighted average common shares outstanding

                                               

Basic

    52,782,663       29,166,165       52,752,884       29,043,174       7,576,289          

Diluted

    52,782,663       29,166,165       52,752,884       29,043,174       7,576,289          
                                                 

Net (loss) income per common share

                                               

Basic

  $ (1.13 )   $ (0.35 )   $ (1.19 )   $ (0.48 )   $ (3.00 )        

Diluted

  $ (1.13 )   $ (0.35 )   $ (1.19 )   $ (0.48 )   $ (3.00 )        

 

 

 

Concrete Pumping Holdings, Inc.

Consolidated Statements of Cash Flows

                            S/P Combined  
   

Successor

   

Predecessor

   

(non-GAAP)

 

(in thousands, except per share amounts)

 

Six Months Ended April 30, 2020

   

December 6, 2018 through April 30, 2019

   

November 1,
2018 through
December 5, 2018

   

Six months ended April 30, 2019

 
                                 

Net income (loss)

  $ (61,714 )   $ (13,275 )   $ (22,575 )   $ (35,850 )

Adjustments to reconcile net income to net cash provided by operating activities:

                               

Goodwill and intangibles impairment

    57,944       -       -       -  

Depreciation

    13,015       8,668       2,060       10,728  

Deferred income taxes

    (3,515 )     475       (4,355 )     (3,880 )

Amortization of deferred financing costs

    2,076       1,832       152       1,984  

Write off deferred debt issuance costs

    -       -       3,390       3,390  

Amortization of debt premium

    -       -       (11 )     (11 )

Amortization of intangible assets

    17,147       11,838       653       12,491  

Stock-based compensation expense

    2,850       361       27       388  

Prepayment penalty on early extinguishment of debt

    -       -       13,004       13,004  

(Gain)/loss on the sale of property, plant and equipment

    (477 )     (137 )     (166 )     (303 )

Payment of contingent consideration in excess of amounts established in purchase accounting

    (526 )     -       -       -  

Net changes in operating assets and liabilities (net of acquisitions):

                               

Trade receivables, net

    4,009       1,235       485       1,720  

Inventory

    127       147       (294 )     (147 )

Prepaid expenses and other current assets

    (5,209 )     (2,869 )     (1,283 )     (4,152 )

Income taxes payable, net

    301       1,836       203       2,039  

Accounts payable

    (101 )     (7,850 )     (654 )     (8,504 )

Accrued payroll, accrued expenses and other current liabilities

    1,060       (6,351 )     17,280       10,929  

Net cash (used in) provided by operating activities

    26,987       (4,090 )     7,916       3,826  
                                 

Cash flows from investing activities:

                               

Purchases of property, plant and equipment

    (23,305 )     (25,007 )     (503 )     (25,510 )

Proceeds from sale of property, plant and equipment

    3,607       1,031       364       1,395  

Cash withdrawn from Industrea Trust Account

    -       238,474       -       238,474  

Acquisition of net assets, net of cash acquired - CPH acquisition

    -       (449,434 )     -          

Net cash (used in) investing activities

    (19,698 )     (234,936 )     (139 )     (235,075 )
                                 

Cash flows from financing activities:

                               

Proceeds on long term debt

    -       357,000       -       357,000  

Payments on long term debt

    (10,444 )     (4,463 )     -       (4,463 )

Proceeds on revolving loan

    143,559       73,659       4,693       78,352  

Payments on revolving loan

    (127,404 )     (41,810 )     (20,056 )     (61,866 )

Redemption of common shares

    -       (231,415 )     -       (231,415 )

Payment of debt issuance costs

    -       (21,049 )     -       (21,049 )

Payments on capital lease obligations

    (45 )     (34 )     (7 )     (41 )

Issuance of common stock related to stock plans

    -       -       -       -  

Purchase of treasury stock

    (131 )     -       -       -  

Issuance of preferred shares

    -       25,000       -       25,000  

Payment of underwriting fees

    -       (8,050 )     -       (8,050 )

Issuance of common shares

    -       96,901       -       96,901  

Payment of contingent consideration established in purchase accounting

    (1,161 )     -       -       -  

Proceeds on exercise of rollover incentive options

    -       1,370       -       1,370  

Net cash provided by (used in) financing activities

    4,374       247,109       (15,370 )     231,739  

Effect of foreign currency exchange rate on cash

    (1,088 )     (2,894 )     (70 )     (2,964 )

Net increase (decrease) in cash

    10,575       2,932       (7,663 )     (4,731 )

Cash:

                               

Beginning of period

    7,473       4       -       -  

End of period

  $ 18,048     $ 2,936     $ 958     $ 2,936  

 

 

 

Concrete Pumping Holdings, Inc.

Segment Revenue

 

   

Successor

   

Change

 

(in thousands)

 

Three Months

Ended April 30, 2020

   

Three Months

Ended April 30, 2019

   

$

   

%

 

Revenue

                               

U.S. Concrete Pumping

  $ 57,459     $ 42,548     $ 14,911       35.0 %

U.K. Operations

    8,401       12,689       (4,288 )     -33.8 %

U.S. Concrete Waste Management Services

    8,306       6,751       1,555       23.0 %

Corporate

    625       -       625       0.0 %

Intersegment

    (750 )     -       (750 )     0.0 %
    $ 74,041     $ 61,988     $ 12,053       19.4 %

 

 

                           

S/P Combined

                 
   

Successor

   

Predecessor

   

(non-GAAP)

   

Change

 

(in thousands)

 

Six Months Ended April 30, 2020

   

December 6, 2018 through April 30, 2019

   

November 1, 2018 through December 5, 2018

   

Six Months Ended April 30, 2019

   

$

   

%

 

Revenue

                                               

U.S. Concrete Pumping

  $ 112,564     $ 66,615     $ 16,659     $ 83,274     $ 29,290       35.2 %

U.K. Operations

    19,086       18,504       5,143       23,647       (4,561 )     -19.3 %

U.S. Concrete Waste Management Services

    16,589       10,839       2,628       13,467       3,122       23.2 %

Corporate

    1,250       -       242       242       1,008       416.5 %

Intersegment

    (1,509 )     -       (276 )     (276 )     (1,233 )     446.7 %
    $ 147,980     $ 95,958     $ 24,396     $ 120,354     $ 27,626       23.0 %

 

Concrete Pumping Holdings, Inc.

Segment Adjusted EBITDA

 

   

Successor

   

Change

 

(in thousands)

 

Three Months Ended April 30, 2020

   

Three Months Ended April 30, 2019

   

$

   

%

 

Adjusted EBITDA

                               

U.S. Concrete Pumping

  $ 16,319     $ 10,803     $ 5,516       51.1 %

U.K. Operations

    2,516       4,081       (1,565 )     -38.3 %

U.S. Concrete Waste Management Services

    4,055       2,977       1,078       36.2 %

Corporate

    625       371       254       68.5 %
    $ 23,515     $ 18,232     $ 5,283       29.0 %

 

                           

S/P Combined

                 
   

Successor

   

Predecessor

   

(non-GAAP)

   

Change

 

(in thousands)

 

Six Months Ended April 30, 2020

   

December 6, 2018 through April 30, 2019

   

November 1, 2018 through December 5, 2018

   

Six Months Ended April 30, 2019

   

$

   

%

 

Adjusted EBITDA

                                               

U.S. Concrete Pumping

  $ 33,166     $ 15,539     $ 7,627     $ 23,166     $ 10,000       43.2 %

U.K. Operations

    5,127       4,566       1,396       5,962       (835 )     -14.0 %

U.S. Concrete Waste Management Services

    7,804       4,681       388       5,069       2,735       54.0 %

Corporate

    1,250       1,008       177       1,185       65       5.5 %
    $ 47,347     $ 25,794     $ 9,588     $ 35,382     $ 11,965       33.8 %

 

 

 

Concrete Pumping Holdings, Inc.

Quarterly Financial Performance

 

(dollars in millions)

 

Revenue

   

Adjusted

EBITDA1

   

Capital

Expenditures

   

Adjusted

EBITDA less

Capital Expenditures

 
                                 

Q1 2017

  $ 46     $ 14     $ 4     $ 9  

Q2 2017

  $ 51     $ 16     $ 3     $ 13  

Q3 2017

  $ 55     $ 18     $ 1     $ 18  

Q4 2017

  $ 60     $ 20     $ 14     $ 6  

Q1 2018

  $ 53     $ 16     $ 7     $ 9  

Q2 2018

  $ 56     $ 18     $ 1     $ 17  

Q3 2018

  $ 66     $ 22     $ 11     $ 11  

Q4 2018

  $ 68     $ 22     $ 9     $ 13  

Q1 2019

  $ 58     $ 17     $ 11     $ 6  

Q2 2019

  $ 62     $ 18     $ 13     $ 5  

Q3 2019

  $ 79     $ 31     $ 4     $ 27  

Q4 2019

  $ 84     $ 30     $ 5     $ 25  

Q1 2020

  $ 74     $ 24     $ 16     $ 8  

Q2 2020

  $ 74     $ 24     $ 4     $ 20  

 

¹Adjusted 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” below for a discussion of the definition of this measure and reconciliation of such measure to its most comparable GAAP measure.

 

 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

                                           

S/P Combined

 
   

Successor

   

Predecessor

   

(non-GAAP)

 

(dollars in thousands)

 

Three Months Ended April 30, 2020

   

Three Months Ended April 30, 2019

   

Six Months Ended April 30, 2020

   

December 6, 2018 through April 30, 2019

   

November 1, 2018
through
December 5,
2018

   

Six Months

Ended April 30, 2019

 

Consolidated

                                               

Net income (loss)

  $ (58,968 )   $ (9,645 )   $ (61,714 )   $ (13,275 )   $ (22,575 )   $ (35,850 )

Interest expense, net

    8,765       9,318       18,268       14,910       1,644       16,554  

Income tax expense (benefit)

    (2,221 )     1,572       (3,368 )     (1,193 )     (4,192 )     (5,385 )

Depreciation and amortization

    15,076       12,132       30,162       20,506       2,713       23,219  

EBITDA

    (37,348 )     13,377       (16,652 )     20,948       (22,410 )     (1,462 )

Transaction expenses

    -       1,282       -       1,282       14,167       15,449  

Loss on debt extinguishment

    -       -       -       -       16,395       16,395  

Stock based compensation

    1,383       361       2,850       361       -       361  

Other expense (income)

    (33 )     (20 )     (103 )     (31 )     (6 )     (37 )

Goodwill and intangibles impairment

    57,944       -       57,944       -       -       -  

Other adjustments

    1,569       3,232       3,308       3,234       1,442       4,676  

Adjusted EBITDA

  $ 23,515     $ 18,232     $ 47,347     $ 25,794     $ 9,588     $ 35,382  
                                                 

U.S. Concrete Pumping

                                               

Net income (loss)

  $ (44,303 )   $ (10,900 )   $ (46,790 )   $ (12,962 )   $ (25,252 )   $ (38,214 )

Interest expense, net

    8,096       8,578       16,828       13,712       1,154       14,866  

Income tax expense (benefit)

    (2,751 )     1,428       (4,138 )     (934 )     (2,102 )     (3,036 )

Depreciation and amortization

    10,144       6,706       20,148       11,532       1,635       13,167  

EBITDA

    (28,814 )     5,812       (13,952 )     11,348       (24,565 )     (13,217 )

Transaction expenses

    -       1,282       -       1,282       14,167       15,449  

Loss on debt extinguishment

    -       -       -       -       16,395       16,395  

Stock based compensation

    1,383       361       2,850       361       -       361  

Other expense (income)

    (7 )     (20 )     (17 )     (31 )     (6 )     (37 )

Goodwill and intangibles impairment

    43,500       -       43,500       -       -       -  

Other adjustments

    257       3,368       785       2,579       1,636       4,215  

Adjusted EBITDA

  $ 16,319     $ 10,803     $ 33,166     $ 15,539     $ 7,627     $ 23,166  
                                                 

U.K. Operations

                                               

Net income (loss)

  $ (15,955 )   $ 789     $ (16,848 )   $ (770 )   $ 158     $ (612 )

Interest expense, net

    669       740       1,440       1,198       490       1,688  

Income tax expense (benefit)

    509       110       394       (294 )     49       (245 )

Depreciation and amortization

    2,065       2,659       4,261       4,297       890       5,187  

EBITDA

    (12,712 )     4,298       (10,753 )     4,431       1,587       6,018  

Transaction expenses

    -       -       -       -       -       -  

Loss on debt extinguishment

    -       -       -       -       -       -  

Stock based compensation

    -       -       -       -       -       -  

Other expense (income)

    (26 )     -       (86 )     -       -       -  

Goodwill and intangibles impairment

    14,444       -       14,444       -       -       -  

Other adjustments

    810       (217 )     1,522       135       (191 )     (56 )

Adjusted EBITDA

  $ 2,516     $ 4,081     $ 5,127     $ 4,566     $ 1,396     $ 5,962  
                                                 

U.S. Concrete Waste Management Services

                                         

Net income (loss)

  $ 859     $ (96 )   $ 1,225     $ (387 )   $ 2,009     $ 1,622  

Interest expense, net

    -       -       -       -       -       -  

Income tax expense (benefit)

    34       (27 )     239       (27 )     (1,784 )     (1,811 )

Depreciation and amortization

    2,660       2,703       5,339       4,575       163       4,738  

EBITDA

    3,553       2,580       6,803       4,161       388       4,549  

Transaction expenses

    -       -       -       -       -       -  

Loss on debt extinguishment

    -       -       -       -       -       -  

Stock based compensation

    -       -       -       -       -       -  

Other expense (income)

    -       -       -       -       -       -  

Goodwill and intangibles impairment

    -       -       -       -       -       -  

Other adjustments

    502       397       1,001       520       -       520  

Adjusted EBITDA

  $ 4,055     $ 2,977     $ 7,804     $ 4,681     $ 388     $ 5,069  
                                                 

Corporate

                                               

Net income (loss)

  $ 431     $ 562     $ 699     $ 844     $ 510     $ 1,354  

Interest expense, net

    -       -       -       -       -       -  

Income tax expense (benefit)

    (13 )     61       137       62       (355 )     (293 )

Depreciation and amortization

    207       64       414       102       25       127  

EBITDA

    625       687       1,250       1,008       180       1,188  

Transaction expenses

    -       -       -       -       -       -  

Loss on debt extinguishment

    -       -       -       -       -       -  

Stock based compensation

    -       -       -       -       -       -  

Other expense (income)

    -       -       -       -       -       -  

Goodwill and intangibles impairment

    -       -       -       -       -       -  

Other adjustments

    -       (316 )     -       -       (3 )     (3 )

Adjusted EBITDA

  $ 625     $ 371     $ 1,250     $ 1,008     $ 177     $ 1,185  
 

 

Concrete Pumping Holdings, Inc.

Reconciliation of Net Debt

 

   

October 31,

   

January 31,

   

April 30,

   

Change in Net

 

(in thousands)

 

2019

   

2020

   

2020

    Debt Q1 to Q2  

Term loan outstanding

    402,094       396,871       391,650       (5,221 )

Revolving loan draws outstanding

    23,555       38,661       39,211       550  

Less: Cash

    (7,473 )     (2,636 )     (18,048 )     (15,412 )

Net debt

    418,176       432,896       412,813       20,083  

 

 
Image Exhibit

Exhibit 99.2