Limbach Holdings Inc (LMB) 2023 Q4 法說會逐字稿

Good morning and welcome to the Fourth Quarter and Fiscal Year 2023 Limbach Holdings earnings conference call and webcast. (Operator Instructions) I will now turn the conference over to your host, Julie Kegley of Financial Profiles. You may begin.

早上好，歡迎來到 Limbach Holdings 2023 年第四季和財年財報電話會議和網路廣播。（操作員指示）我現在將會議轉交給主持人，Financial Profiles 的 Julie Kegley。你可以開始了。

Good morning, and thank you for joining us today to discuss Limbach Holdings financial results for the fourth quarter and fiscal year 2023. Yesterday, Limbach issued its earnings release and filed its Form 10K for the period ended December 31, 2023. Both documents as well as an updated investor presentation are available on the Investor Relations section of the company's website at limbachInc.com.

早安，感謝您今天加入我們討論 Limbach Holdings 第四季度和 2023 財年的財務業績。昨天，Limbach 發布了截至 2023 年 12 月 31 日期間的收益報告並提交了 10K 表格。這兩份文件以及更新的投資者簡報均可在公司網站limbachInc.com 的投資者關係部分取得。

Management may refer to select slides during today's call and encourages investors to review the presentation in its entirety. With me on today's call are Michael McCann, President and Chief Executive Officer; and Jayme Brooks, Executive Vice President and Chief Financial Officer. We will begin with prepared remarks and then open up the call for analyst questions.

管理層可能會在今天的電話會議中參考部分投影片，並鼓勵投資者完整地審查簡報。與我一起參加今天電話會議的有總裁兼執行長 Michael McCann；和執行副總裁兼財務長 Jayme Brooks。我們將從準備好的發言開始，然後開始徵求分析師提問。

Before we begin, I would like to remind you that today's comments will include forward-looking statements(technical difficulty) by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts such as statements about expected improvement in profit and operating margins are also forward looking statements. Actual results may differ materially from those contemplated by such forward-looking statements.

在我們開始之前，我想提醒您，今天的評論將包括前瞻性陳述（技術難度），例如將、是、打算、相信、期望、預期或其他類似的單字和短語。非歷史事實的陳述，例如有關利潤和營業利潤率預期改善的陳述，也是前瞻性陳述。實際結果可能與此類前瞻性陳述預期的結果有重大差異。

A discussion of the factors that could cause a material difference in the company's results compared to these forward-looking statements is contained in Limbach SEC filings, including reports on Form 10K and 10Q. Please note that on today's call, we will be referring to some non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our fourth quarter earnings release and investor presentation, which can be found on Limbach Investor Relations website and has been furnished on Form 8K with the SEC.

與這些前瞻性陳述相比，可能導致公司業績出現重大差異的因素的討論包含在 Limbach SEC 文件中，包括 10K 表格和 10Q 表格的報告。請注意，在今天的電話會議上，我們將提及一些非公認會計準則措施。您可以在我們的第四季度收益發布和投資者介紹中找到這些非GAAP 衡量標準與最直接可比較的GAAP 衡量標準的對賬，這些數據可以在Limbach 投資者關係網站上找到，並已在SEC 的8K 表格中提供。

With that, I will now turn the call over to Mike McCann.

現在，我將把電話轉給麥克麥肯。

Good morning, everyone. I'd like to welcome our stockholders and analysts, as well as those who may be new to Limbach. Thank you all for joining our call today. A few years ago, we saw an opportunity to leverage our construction and engineering service experience, relationships and knowledge to build a pure-play building system solutions firm. Our objective was two fold. First to transfer a loan bucket to a value added solutions partner to building owners to command higher margins while delivering greater returns for our stockholders. And second, to positioned Limbach into a less competitive volatile markets, creating a stronger, more resilient company.

大家，早安。我謹歡迎我們的股東和分析師，以及那些剛接觸林巴赫的人。感謝大家今天加入我們的電話會議。幾年前，我們看到了一個機會，可以利用我們的建築和工程服務經驗、關係和知識來建立純粹的建築系統解決方案公司。我們的目標有兩個。首先將貸款桶轉移給增值解決方案合作夥伴，讓業主獲得更高的利潤，同時為我們的股東帶來更大的回報。其次，將林巴赫定位於競爭較少、波動性較小的市場，打造更強大、更有彈性的公司。

Through disciplined execution of this strategy, today, we are partnering with building owners to provide critical services and will need to maintain uninterrupted operations in their facilities. We provide building owners with solutions and services to maintain and upgrade their mission critical mechanical, electrical and plumbing infrastructure. We are focused on six key vertical markets. Health care, industrial manufacturing, data centers, life science, higher education and cultural entertainment.

透過嚴格執行這項策略，今天，我們正在與業主合作提供關鍵服務，並需要保持其設施的不間斷運作。我們為業主提供解決方案和服務，以維護和升級其任務關鍵型機械、電氣和管道基礎設施。我們專注於六個主要垂直市場。醫療保健、工業製造、資料中心、生命科學、高等教育和文化娛樂。

These are large and growing markets with sustainable demand drivers were systems failure is not an option. We operate two business segments, our owner-direct relationships segments at ODR, where we work directly building owners provide Building System Solutions, which now accounts for over 50% of our total revenue.

這些都是龐大且不斷成長的市場，具有可持續的需求驅動因素，系統故障是不可能的。我們經營兩個業務部門，即 ODR 的業主直接關係部門，我們直接為業主提供建築系統解決方案，目前占我們總收入的 50% 以上。

In our general contractor relationship segment or GCR, where we work directly with general contractors. We are focused on growing our ODR business for several reasons. First, our direct customer relationships give us access to key decision-makers.

在我們的總承包商關係部門或 GCR 中，我們直接與總承包商合作。我們專注於發展 ODR 業務有幾個原因。首先，我們的直接客戶關係使我們能夠接觸到關鍵決策者。

While the initial engagement may be small, we have a strong value proposition and the opportunity to build long-term relationships. As we become embedded into our customers' businesses, we are often on-site collaborating with their teams to develop customized solutions that reduce costs and drive energy efficiencies. This positions us to handle near term maintenance needs at the same time, developed risk mitigation and cost saving strategies for the future.

雖然最初的參與可能很小，但我們有強大的價值主張和建立長期關係的機會。隨著我們融入客戶的業務，我們經常在現場與他們的團隊合作開發客製化的解決方案，以降低成本並提高能源效率。這使我們能夠同時處理近期維護需求，並制定未來風險緩解和成本節約策略。

By adding more value over time, we can become an indispensable partner to our customers, helping them avoid their biggest nightmare business disruption due to systems failure. In turn with these types of ODR relationships, we generate reoccurring revenue at higher margins. As we grow our ODR business, this gives us opportunity to become more selective.

透過隨著時間的推移增加更多的價值，我們可以成為客戶不可或缺的合作夥伴，幫助他們避免因係統故障而造成的最大的噩夢般的業務中斷。反過來，透過這些類型的 ODR 關係，我們能夠以更高的利潤產生經常性收入。隨著我們 ODR 業務的發展，我們有機會變得更加挑剔。

When evaluating our lower margin TCR projects, as a result, we expect to see our revenue to decline. We are focused on building relationships with our top five building owners in each of our locations. Our target customers have multiple facilities, which opens the door to developing long-term mutually beneficial relationships. A recent example of our successful ODR model at work is with one of our Florida health care facilities.

因此，在評估利潤率較低的 TCR 項目時，我們預期收入會下降。我們專注於與每個地點的前五名業主建立關係。我們的目標客戶擁有多個設施，為發展長期互利關係打開了大門。我們最近成功實施 ODR 模式的一個例子是佛羅裡達州的醫療機構。

Our relationship started out as a small engagements, and they are now one of our top five customers for one of our Florida locations. We have fully embedded teams working on site closely with this customer on all aspects of OpEx and CapEx planning decisions, where we can have a tangible impact on their operational goals.

我們的關係最初是一次小型合作，現在他們是我們佛羅裡達州工廠之一的前五名客戶之一。我們擁有完全嵌入的團隊在現場與該客戶密切合作，在營運支出和資本支出規劃決策的各個方面進行工作，我們可以對他們的營運目標產生切實的影響。

We are executing our strategy from an advantaged position between property managers, who act as pure generalist. OEMs who sell proprietary equipment and traditional contractors. Our objectives to provide unbiased objective analysis and recommendations on the integrity and opportunities improve their entire system, including HVAC, electrical, plumbing and engineered systems. This is where we add value. Our customers know our goals to recommend optimal cost effective solutions to ensure uninterrupted service.

我們在物業經理之間的優勢地位執行我們的策略，他們是純粹的多面手。銷售專有設備的原始設備製造商和傳統承包商。我們的目標是提供有關完整性和機會的公正客觀的分析和建議，以改善他們的整個系統，包括暖通空調、電氣、管道和工程系統。這就是我們增加價值的地方。我們的客戶知道我們的目標是推薦最佳的成本效益解決方案，以確保不間斷的服務。

We believe our ODR business has significant organic growth opportunities, as we continue to expand our customer relationships. For example, as I indicated in our earnings press release in 2024, we have invested approximately $4 million in portable HVAC rental equipment to provide urgent and critical system solutions for our customers.

我們相信，隨著我們不斷擴大客戶關係，我們的 ODR 業務擁有巨大的有機成長機會。例如，正如我在 2024 年收益新聞稿中指出的那樣，我們已投資約 400 萬美元購買便攜式 HVAC 租賃設備，為我們的客戶提供緊急且關鍵的系統解決方案。

This is a strategic investment to expand our service offerings and grow our market share with existing customers. Strategic acquisitions are also an important component for a long-term growth plan. We take a disciplined and selective approach to acquiring companies that meet four key criteria, expanding our geographic footprint and service capabilities, supporting our ODR growth strategy and most importantly, their good cultural fit.

這是一項策略性投資，旨在擴大我們的服務範圍並擴大我們與現有客戶的市場份額。策略性收購也是長期成長計畫的重要組成部分。我們採取嚴格且有選擇性的方法來收購符合四個關鍵標準的公司，擴大我們的地理足跡和服務能力，支持我們的 ODR 成長策略，最重要的是，支持他們良好的文化契合度。

We are establishing a track record of making acquisitions that follow our specific strategy. In 2023, we made two acquisitions, ACME industrial industrial air. ACME was a tuck-in acquisition that provided new owner direct relationships with on-premise teams at Fortune 500 caliber customers in manufacturing vertical. Industrial air expand our geographic footprint in North Carolina, providing additional ODR customer relationships with consumer goods or textile manufacturing facilities. We believe that successful strategic acquisitions, along with organic growth will drive profitability and create shareholder value.

我們正在建立遵循我們特定策略的收購記錄。2023年，我們進行了兩次收購，ACME工業工業空氣。ACME 是一項隱性收購，為新所有者提供了與製造業垂直領域財富 500 強客戶的本地團隊的直接關係。工業空氣擴大了我們在北卡羅來納州的地理足跡，為消費品或紡織品製造工廠提供了額外的 ODR 客戶關係。我們相信，成功的策略收購以及有機成長將推動獲利能力並創造股東價值。

Now that I've outlined our strategy and how we create value. I'd like to talk about 2023 because, Limbach had a great year. The company demonstrated significant earnings growth and cash flow, while maintaining a strong balance sheet by accelerating our mix shift to ODR from GCR ahead schedule, which we see as definitive evidence of the success of our mix shift strategy. ODR accounted for 50.7% of our full year revenue for 2023, exceeding our 50% ODR target.

現在我已經概述了我們的策略以及我們如何創造價值。我想談 2023 年，因為林巴赫度過了美好的一年。該公司表現出顯著的獲利成長和現金流，同時透過提前加速從 GCR 向 ODR 的混合轉型來維持強勁的資產負債表，我們認為這是我們混合轉型策略成功的明確證據。ODR 占我們 2023 年全年營收的 50.7%，超過了我們 50% ODR 的目標。

We're making great progress towards our 2024, '25 ODR revenue target of more than 70%. As we exited the year with the ODR revenue accounting for 55.1% for the fourth quarter. We expanded total gross margins by 420 basis points in 2023 to 23.1% from 18.9% in 2022. Full year gross margins were 29% for the year, which exceeded our target range of 25% to 28%. TCR margins were 17% for the year, also exceeding our target range of 12% to 15% as we honed in our focus on high margin quick hitting projects.

我們正在朝著 2024 年 '25 ODR 收入超過 70% 的目標取得巨大進展。年底時，第四季 ODR 營收佔 55.1%。2023 年，我們將總毛利率從 2022 年的 18.9% 提高了 420 個基點，達到 23.1%。全年毛利率為 29%，超出了我們 25% 至 28% 的目標範圍。今年 TCR 利潤率為 17%，也超出了我們 12% 至 15% 的目標範圍，因為我們專注於高利潤快速專案。

I'll now turn it over to Jayme to provide detailed financial highlights before I return with additional commentary, Jayme?

現在，我將把它交給 Jayme，以提供詳細的財務摘要，然後再返回附加評論，Jayme？

Thank you, Mike. Our fourth quarter and 2023 earnings press release and Form 10K, which were filed yesterday, provide comprehensive details of the company's financials. So, I will focus on the fourth quarter and full year 2023 highlights. During the quarter, we generated consolidated revenues of $142.7 million versus $143.5 million in 2022. Consolidated revenues declined by 0.6% as ODR revenue grew 22.8% and GCR revenue declined 19.4%, as we executed our mix shift strategy towards ODR.

謝謝你，麥克。我們昨天提交的第四季度和 2023 年收益新聞稿以及 10K 表格提供了公司財務狀況的全面詳細資訊。因此，我將重點放在第四季和 2023 年全年的亮點。本季度，我們的綜合收入為 1.427 億美元，而 2022 年為 1.435 億美元。由於我們執行了向 ODR 的混合轉變策略，合併收入下降了 0.6%，ODR 收入成長了 22.8%，GCR 收入下降了 19.4%。

In the fourth quarter, ODR revenue was 55.1% of consolidated revenue, up from 44.6% in 2022. For the year, we generated consolidated revenues of $516.4 million compared to $496.8 million in 2022. Revenue grew 3.9% as ODR revenue grew 21.1% and GCR revenue declined 9.3%. ODR revenue accounted for 50.7% of consolidated revenue for the year, up from 42.6% in 2022. Gross margin on a consolidated basis for the fourth quarter was 23.3%, up from 20.4% in 2022.

第四季度，ODR 收入佔合併收入的 55.1%，高於 2022 年的 44.6%。今年，我們的綜合收入為 5.164 億美元，而 2022 年為 4.968 億美元。營收成長 3.9%，其中 ODR 營收成長 21.1%，GCR 營收下降 9.3%。ODR 收入佔當年合併收入的 50.7%，高於 2022 年的 42.6%。第四季綜合毛利率為 23.3%，高於 2022 年的 20.4%。

ODR gross profit increased $6.4 million or 36.8%, driven by higher revenue with expanded gross margin in Q4 to 30.1% versus 27% in 2022. PCR gross profit decreased $2.3 million or 19.1% improved revenue with their focus on high-quality, quick turning projects. PCR gross margins were flat at 15% year-over-year. For the year, gross margin on a consolidated basis was 23.1%, up from 18.9% in 2022.

由於營收增加，ODR 毛利增加了 640 萬美元，即 36.8%，第四季毛利率擴大至 30.1%，而 2022 年為 27%。PCR 毛利減少了 230 萬美元，收入提高了 19.1%，因為他們專注於高品質、快速週轉的專案。PCR 毛利率較去年持平，為 15%。全年綜合毛利率為 23.1%，高於 2022 年的 18.9%。

ODR gross profit increased $21 million or 38%, driven by an increase in revenue and expanded gross margins of 29% from 25.5% in 2022. PCR gross profit increased $4.6 million or 11.9% due to higher margins. Although ACME decline in the GCR segment, gross margin expanded to 17% for the year versus 13.8% in 2022. As I mentioned earlier, the ODR segment made up 55.1% of consolidated revenue for the quarter.

由於收入成長以及毛利率從 2022 年的 25.5% 擴大至 29%，ODR 毛利增加了 2,100 萬美元，即 38%。由於利潤率提高，PCR 毛利增加了 460 萬美元，即 11.9%。儘管 ACME 在 GCR 領域出現下滑，但今年的毛利率從 2022 年的 13.8% 擴大至 17%。正如我之前提到的，ODR 部門佔本季合併收入的 55.1%。

However, the ODR segment contributed 71% of the total gross profit dollars or $23.7 million for the quarter. This is the mix shift strategy. During the quarter, SG&A expense increased approximately $3.2 million to $25 million from $21.8 million in 2022. As a percentage of revenue, SG&A expense was 17.5% up from 15.2% in 2022.

然而，ODR 部門貢獻了本季毛利總額的 71%，即 2,370 萬美元。這就是混合轉移策略。本季度，SG&A 費用從 2022 年的 2,180 萬美元增加約 320 萬美元至 2,500 萬美元。SG&A 費用佔收入的百分比從 2022 年的 15.2% 上升至 17.5%。

While there are some smaller puts and takes, the increase was driven primarily by higher payroll and incentive related expenses associated with accelerating our ODR strategy, as well as expense incurred as a result of the acquisitions of ACME and industrial air.

雖然有一些較小的賣權和賣出選擇權，但成長的主要原因是與加速我們的 ODR 策略相關的薪資和激勵相關費用的增加，以及收購 ACME 和工業空氣所產生的費用。

For the year, SG&A expense increased by approximately $9.5 million to $87.4 million compared to $77.9 million for 2022. As a percentage of revenue, SG&A expense was 16.9%, up from 15.7% in 2022. The increase was driven primarily by higher payroll and incentive-related expenses associated with accelerating our ODR strategy.

今年，SG&A 費用增加約 950 萬美元，達到 8,740 萬美元，而 2022 年為 7,790 萬美元。SG&A 費用佔收入的百分比為 16.9%，高於 2022 年的 15.7%。這一增長主要是由於與加速我們的 ODR 策略相關的工資和激勵相關費用的增加所致。

An increase in stock-based compensation expense and expenses incurred as a result of the ACME and industrial acquisitions. For 2024, we are targeting SG&A expense as a percentage of revenue to be around 18% to 19%, as we continue to invest in our ODR business to drive growth.

股票補償費用以及因 ACME 和工業收購而產生的費用增加。到 2024 年，我們的目標是 SG&A 費用佔收入的百分比約為 18% 至 19%，因為我們將繼續投資 ODR 業務以推動成長。

Interest expense for Q4 was $0.4 million and $2 million for the year. Interest income for the quarter was $0.6 million and $1.2 million for the year, driven by the company's investment strategy and placing our excess cash in overnight repurchase agreements, US Treasury bills and money market funds.

第四季的利息支出為 40 萬美元，全年利息支出為 200 萬美元。本季的利息收入為 60 萬美元，全年利息收入為 120 萬美元，這主要得益於公司的投資策略以及將多餘現金投入隔夜回購協議、美國國庫券和貨幣市場基金。

Adjusted EBITDA for the fourth quarter was $12.6 million, up 8.8% from $11.6 million in 2022. Adjusted EBITDA margin for the fourth quarter was 8.8% compared to 8.1% in 2022. For the year, adjusted EBITDA was $46.8 million, up 47.3% from $31.8 million in 2022. And we exceeded our 2023 adjusted EBITDA guidance of $42 to $45 million. Adjusted EBITDA margin for the year was 9.1% compared to 6.4% in 2022.

第四季調整後 EBITDA 為 1,260 萬美元，比 2022 年的 1,160 萬美元成長 8.8%。第四季調整後 EBITDA 利潤率為 8.8%，而 2022 年為 8.1%。今年調整後的 EBITDA 為 4,680 萬美元，比 2022 年的 3,180 萬美元成長 47.3%。我們超越了 2023 年調整後 EBITDA 指引值 42 至 4500 萬美元。今年調整後 EBITDA 利潤率為 9.1%，而 2022 年為 6.4%。

Net income for the fourth quarter was $5.2 million or $0.44 per diluted share compared to $3.8 million or $0.35 per diluted share in 2022. This represents 37.8% growth in net income and 25.7% growth in diluted EPS. For the year, net income was $20.8 million or $1.76 per diluted share compared to $6.8 million were $0.64 per diluted share in 2022, representing 205.3% growth in net income and 135% growth in diluted EPS.

第四季淨利為 520 萬美元，即稀釋後每股收益 0.44 美元，而 2022 年淨利為 380 萬美元，即稀釋後每股收益 0.35 美元。這意味著淨利潤成長 37.8%，稀釋後每股收益成長 25.7%。今年淨利潤為 2,080 萬美元，即稀釋後每股收益 1.76 美元，而 2022 年淨利潤為 680 萬美元，稀釋後每股收益為 0.64 美元，淨利潤增長 205.3%，稀釋每股收益增長 135%。

Turning to cash flow, our operating cash flow during the fourth quarter was $13.9 million compared to $12.4 million in 2022, representing a 12.2% increase. Operating cash flow for the year was $57.4 million compared to $35.4 million in 2022, representing a 62.2% increase free cash flow, defined as cash flow from operating activities, less changes in working capital and capital expenditures for the year was $36.7 million compared to $23.4 million in 2022, an increase of 56.6% free cash flow.

談到現金流，我們第四季的營運現金流為 1,390 萬美元，而 2022 年為 1,240 萬美元，成長 12.2%。全年營運現金流為5,740 萬美元，較2022 年的3,540 萬美元增長62.2%，自由現金流（定義為營運活動產生的現金流，減去營運資本和資本支出的變化）為3,670 萬美元，而2022 年為23.4 美元2022年，自由現金流成長56.6%。

Conversion of adjusted EBITDA for the year was 78.4% versus 73.8% in 2022. Free cash flow conversion of net income was over 100% for 2024. We are continuing to target a free cash flow conversion rate of approximately 70%, which we define as cash flow from operations minus changes in working capital minus capital expenditures. Excluding our investment in rental equipment, which is currently approximately $4 million divided by adjusted EBITDA, we expect CapEx for 2024 excluding the investment in rental equipment to have a run rate of approximately $3 million, primarily because of the celebration of our ODR strategy.

今年調整後 EBITDA 的轉換率為 78.4%，而 2022 年為 73.8%。2024年淨利自由現金流轉換率超過100%。我們繼續以約 70% 的自由現金流轉換率為目標，我們將其定義為營運現金流減去營運資本變動再減去資本支出。不包括我們對租賃設備的投資（目前約400 萬美元）除以調整後的EBITDA，我們預計2024 年的資本支出（不包括對租賃設備的投資）的運作率約為300 萬美元，這主要是因為我們慶祝了ODR 策略。

Turning to our balance sheet at the end of Q4, we had $59.8 million in cash and cash equivalents in short and long-term debt net of debt discount of $22.3 million. Our balance sheet remains strong and we are well positioned to make the necessary investments to continue to work towards our ODR expansion and acquisition strategy.

轉向我們第四季末的資產負債表，扣除 2,230 萬美元的債務折扣後，我們的短期和長期債務現金和現金等價物為 5,980 萬美元。我們的資產負債表依然強勁，我們有能力進行必要的投資，繼續致力於我們的 ODR 擴張和收購策略。

Now I will turn it back to Mike for closing remarks.

現在我將把它轉回給麥克做總結發言。

Thank you, Jayme. Before opening up the call to questions, I'll cover our full year 2024 guidance and modeling considerations. For the full year 2024, we expect revenue of $510 million to $530 million and adjusted EBITDA of $49 to $53 million. And to help with modeling, we are targeting segment revenue mix to be 60% to 70% for ODR by the end of 2024, with GCR being between 30% to 40%. As we continue to shift the revenue and be selective, which you see our projects, we expect total gross profit margins to land between 24% to 26% for 2024. Although there is always demand for build and maintenance and repair. There's some level of seasonality to our business.

謝謝你，杰梅。在開始提問之前，我將介紹 2024 年全年指導和建模注意事項。對於 2024 年全年，我們預計營收為 5.1 億至 5.3 億美元，調整後 EBITDA 為 49 至 5,300 萬美元。為了幫助建模，我們的目標是到 2024 年底，ODR 的細分市場收入組合為 60% 至 70%，GCR 為 30% 至 40%。隨著我們繼續轉移收入並進行選擇性（您可以看到我們的項目），我們預計 2024 年總毛利率將降至 24% 至 26% 之間。儘管總是有建造、維護和修理的需求。我們的業務存在一定程度的季節性。

The fourth quarter is usually strong in the first quarter and the back half of the year as you as you started in the first half. We also expect revenue and EBITDA to gain momentum after the first quarter because, we continue to see strong secular tailwinds from deferred maintenance and capital projects coming to the forefront. 2023 was a year of significant growth and achievement. We believe we are in the early innings of our long-term opportunity.

正如上半年開始時一樣，第四季通常在第一季和下半年表現強勁。我們也預計第一季後營收和 EBITDA 將獲得成長勢頭，因為我們繼續看到延期維護和資本項目帶來的強勁長期推動力。 2023 年是顯著成長和成就的一年。我們相信，我們正處於長期機會的早期階段。

We are excited about 2024 and are positioned for continued progress on all three pillars of our strategy. We need to continue to shift the mix by growing organically, as well as expanding our margins through evolve offerings and market share growth through strategic acquisitions.

我們對 2024 年感到興奮，並準備在我們策略的所有三大支柱上持續取得進展。我們需要透過有機成長來繼續改變結構，並透過不斷發展的產品來擴大我們的利潤，並透過策略性收購來增加市場份額。

Finally, I want to thank all of the employees. Our excellent performance in 2023 was a direct result of your hard work and dedication.

最後，我要感謝所有員工。我們 2023 年的出色表現是你們辛勤工作和奉獻的直接結果。

That concludes our prepared remarks. Operator, please begin the Q&A session.

我們準備好的演講到此結束。接線生，請開始問答環節。

Thank you. We will now be conducting a question and answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

Rob Brown, Lake Street Capital.

羅布布朗，湖街資本。

Hi, good morning and congratulations on a strong progress.

你好，早安，祝賀你取得了巨大的進步。

Morning, Rob.

早安，羅布。

Hi, Rob.

嗨，羅布。

That split follow up a little bit more on the ODR kind of our organic growth view. How do you sort of see the organic growth in that business, kind of playing out for the next years?

這種分裂更體現了我們有機成長觀點中的 ODR 類型。您如何看待該業務的有機成長以及未來幾年的表現？

Sure. As we mentioned earlier today, our next target is by the end of 2024 to get to a 60% to 70% ODR mix. So, right now, our focus is really within our six vertical markets. And our strategy is really based on embedding our key personnel into those facilities to make sure that we're really capturing all of the OpEx as much as possible. If you look out to future years, I think we are thinking about how we can not only capture the OpEx, but the CapEx as well, too and then kind of tied together and above with an account manager.

當然。正如我們今天早些時候提到的，我們的下一個目標是到 2024 年底達到 60% 至 70% 的 ODR 組合。因此，現在我們的重點實際上是在我們的六個垂直市場內。我們的策略實際上是基於將我們的關鍵人員嵌入到這些設施中，以確保我們真正盡可能多地捕獲所有營運支出。如果你展望未來幾年，我認為我們正在考慮如何不僅捕獲營運支出，還捕獲資本支出，然後與客戶經理聯繫在一起。

So, I look at things to from a vertical market. We're very disciplined to our six vertical markets from a couple of them right now that we're very focused on. One is health care. And the second is industrial manufacturing. Those are two vertical markets that are very important to us that are going to really help us drive our customer growth.

所以，我從垂直市場來看事物。我們對六個垂直市場非常嚴格，其中有幾個是我們現在非常關注的。一是醫療保健。第二個是工業製造。這兩個垂直市場對我們來說非常重要，將真正幫助我們推動客戶成長。

And even from a health care perspective, that's usually, it doesn't go up and down very much at dependable vertical market, understand the capabilities we're bringing to the marketplace. Industrial Manufacturing obviously has been very strong for us as well too. So, really comes down to making sure that we're building these long-term relationships from the strong foundation and allowing those and really growing with those customers over a period of time.

即使從醫療保健的角度來看，通常情況下，在可靠的垂直市場上它也不會大幅波動，了解我們為市場帶來的功能。顯然，工業製造對我們來說也非常強大。因此，歸根結底，我們要確保我們在堅實的基礎上建立這些長期關係，並在一段時間內與這些客戶一起真正成長。

Okay, great. Thank you. And you talked a little bit about a rental business expanding and maybe some of the some of the service expansions you're doing. Could you elaborate on sort of what that rental opportunity is and what you're doing?

好的，太好了。謝謝。您談到了租賃業務的擴張，也許還有您正在進行的一些服務擴張。您能否詳細說明租賃機會是什麼以及您正在做什麼？

Yes, absolutely. We're excited about this. We've always had three pillars mix shift of all the offerings and expanded margin and strategic acquisitions. We've talked a lot about, obviously the mix shift than acquisitions. But the second pillar of our strategy, I think this is just one piece of that will allow us. So, at the end of the day, we're there in front of those customers and having them having the capability of having our initial rental fleet allows us to be much more of a single-source provider for. Before, we'd have to go to a supplier to get that rental.

是的，一點沒錯。我們對此感到興奮。我們始終將所有產品的三大支柱組合轉變、擴大利潤率和策略性收購。我們已經討論了很多，顯然是混合轉變而不是收購。但我們策略的第二個支柱，我認為這只是我們能夠實現的其中一部分。因此，歸根結底，我們站在這些客戶的面前，讓他們有能力擁有我們的初始租賃車隊，使我們能夠成為單一來源的供應商。以前，我們必須去找供應商才能獲得租金。

Now we've made the initial investment of $4 million into the rental fleet will be able to offer quick service to these customers able to capture the additional gross margin that comes from it as well, too. So, it's, we feel like it's a really good fit with capturing that OpEx in that emergency step type work, and going to be a real value added offering for our customers.

現在，我們已經對租賃車隊進行了 400 萬美元的初始投資，這將能夠為這些客戶提供快速服務，也能夠獲得由此帶來的額外毛利率。因此，我們認為它非常適合在緊急步驟類型的工作中捕獲營運支出，並將為我們的客戶提供真正的增值服務。

Okay, great. And last question is more of on the overall demand environment. I know you're shifting to order direct service some maybe that's helping. But what do you see in terms of the demand environment? How much? Is there a shift in the demand environment and is still seeing strength in the new new project activity?

好的，太好了。最後一個問題更多的是關於整體需求環境。我知道您正在轉向訂購直接服務，這也許會有所幫助。但您對需求環境有何看法？多少？需求環境是否發生了變化，新專案活動仍然強勁？

Sure. The demand environment is still really good. It's sometimes it's dependent on the vertical market sector. And again, I think one of the key reasons that we've really shifted our business to these mission critical type customers is because, that demand becomes durable. So, probably the best way to kind of explain this kind of goes with our strategy is to give a couple of customers examples, and one of the customers examples and one of our vertical markets with a life science customer.

當然。需求環境還是非常好的。有時它取決於垂直市場領域。再說一遍，我認為我們真正將業務轉移給這些關鍵任務型客戶的關鍵原因之一是，這種需求變得持久。因此，解釋這種與我們的策略一致的最佳方法可能是舉出幾個客戶的例子，以及其中一個客戶的例子和我們與生命科學客戶的垂直市場之一。

And it's interesting, we dealt with that customer, declared ourselves, put our resources in front of the customer and that's the first thing that customer told us is lot of clients or suppliers make this promise. But when the big job comes, they leave all their resources and move on. And one thing we ensured this customer is that we're going to dedicate resources and we're going to stick with you. And it's amazing, I think you start to see the POs coming in and they just want that attention.

有趣的是，我們與該客戶打交道，聲明自己，將我們的資源放在客戶面前，這是客戶告訴我們的第一件事，許多客戶或供應商都做出了這項承諾。但當重要工作到來時，他們會放棄所有資源並繼續前進。我們向該客戶保證的一件事是，我們將投入資源，並且我們將堅持與您合作。令人驚訝的是，我認為您開始看到採購訂單進來，他們只是想要得到關注。

So, I'll give you a healthcare example as well, too, which is we're into working an older facility in the mid-Atlantic market and one of the customers felt trapped at the head supplier that was an OEM supplier that was giving them a decent amount of a little bit of attention, but the end of the day, they felt trapped by the proprietary products and services.

因此，我還將給您一個醫療保健示例，即我們正在大西洋中部市場的一家舊設施中運營，其中一位客戶感到被困在主要供應商那裡，而該供應商是一家OEM 供應商，該供應商正在提供他們獲得了相當多的關注，但最終，他們感到被專有產品和服務所困。

And we've been really able to expand our market because, we've had this consultive type relationship as opposed to a transactional relationship, where they feel like they're stuck. And what's nice to is we're not competing against the less sophisticated competition. We're competing against an OEM as well too.

我們確實能夠擴展我們的市場，因為我們擁有這種諮詢類型的關係，而不是交易關係，在交易關係中，他們感覺自己被困住了。令人高興的是，我們不會與不太複雜的競爭對手競爭。我們也在與 OEM 競爭。

So, there's so many different examples, and I always break it down. You know, our model is not based upon, you know, we want our model to be as resilient as possible not based upon macroeconomic demands. And it really comes down these individual customers in these individual vertical markets, where they absolutely need us, we build the relationship and demand becomes durable over time.

所以，有很多不同的例子，我總是把它們分解。你知道，我們的模型不是基於，你知道，我們希望我們的模型盡可能具有彈性，而不是基於宏觀經濟需求。這實際上取決於這些單獨垂直市場中的單獨客戶，他們絕對需要我們，我們建立了關係，隨著時間的推移，需求變得持久。

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

好的。偉大的。謝謝。我會把它翻過來。

Thank you, Rob.

謝謝你，羅布。

Thank you. Gerry Sweeney, Roth Capital.

謝謝。格里·斯威​​尼，羅斯資本。

Good morning, Jeyme and Mike, thanks for taking my call.

早安，傑米和麥克，感謝您接聽我的電話。

Good morning.

早安.

Morning.

早晨。

I just wanted to stick on some of the same topics, Robert just mentioned and specifically ODR growth. And Mike, I think you and I have talked a little bit about this, but I wanted to retouch and just get freshened up. I'm just curious how deep you are with some of your current customers. I think there's a wallet share play here. So, my question is this how much more wallet share do you have with existing customers? How much of this ADR growth can come from wallet share? Then the third part sorry is just maybe new entrants or new opportunities, new customers ecetra?

我只是想繼續討論一些相同的主題，羅伯特剛剛提到，特別是 ODR 增長。麥克，我想你和我已經討論過這個問題了，但我想修飾一下，讓自己煥然一新。我只是好奇您與當前的一些客戶的關係有多深。我認為這裡有一個錢包共享遊戲。所以，我的問題是，您與現有客戶的錢包份額還有多少？ADR 成長有多少來自錢包份額？那麼第三部分抱歉可能只是新進者或新機會，新客戶等等？

Sure. It's interesting. I've always said before that we're in the early innings of our strategy in some sense that really equates to where we are from a customer bases perspective. So, we've talked to tons of customers in based upon describing what we do. And there's no doubt in my mind that they desire to have the type of services and relationships that we want to have with our customers. So, I look at it from where we've grown from just from our ODR revenue segment. A lot of that has really come from the expansion of existing relationships.

當然。這真有趣。我之前一直說過，從某種意義上說，我們正處於策略的早期階段，這實際上相當於從客戶群的角度來看我們所處的位置。因此，我們根據我們所做的工作與大量客戶進行了交談。在我看來，毫無疑問，他們希望擁有我們希望與客戶建立的服務類型和關係。因此，我從我們的 ODR 收入部門發展的角度來看這個問題。其中很大一部分確實來自於現有關係的擴展。

So, at the end of the day, we're targeting relationships that have long term spend opportunity, multiple buildings. I mentioned some of this in the script, but we're very much at the early stages of those relationships with our customers. So, I would tell you come back around to your wallet share question placed customers.

因此，歸根究底，我們的目標是擁有長期消費機會、多棟建築的關係。我在劇本中提到了其中的一些內容，但我們與客戶的關係還處於早期階段。所以，我會告訴你回到你的錢包共享問題提出的客戶。

We have a small amount of market share and wallet share, but there's a tremendous amount of opportunity and there's the demand there to expand it. It's up to us to make sure that we continue to dedicate those resources that example I used previously before about that life science customers kind of a perfect example.

我們擁有少量的市場份額和錢包份額，但存在巨大的機會並且存在擴大機會的需求。我們有責任確保我們繼續投入這些資源，我之前使用過的關於生命科學客戶的例子就是一個完美的例子。

It's going to start with some smaller POs and it's going to build to larger capital projects over a period of time. But we'll always have that steady OpEx work as that CapEx work builds over a period of time. So, from this from a new opportunity even from a customer basis, a lot of those relationships right now are based on recommendations.

將從一些較小的 PO 開始，並在一段時間內建立更大的資本項目。但我們將始終保持穩定的營運支出工作，因為資本支出工作是在一段時間內建立的。因此，從新的機會甚至從客戶的角度來看，現在很多關係都是基於推薦的。

So, working on a lifestyle facility or health care facility everybody knows everybody and they see that we're doing a good job of providing a high level of service we've had. We started up people call and say, can you come over to my building as well, too. So, it's very much in the early innings, and there's a tremendous opportunity to gain market share and wallet share as we continue our journey

因此，在生活設施或醫療保健設施工作的每個人都認識每個人，他們看到我們在提供高水準的服務方面做得很好。我們開始有人打電話說，你也可以到我的大樓來嗎？因此，現在還處於早期階段，隨著我們繼續我們的旅程，有巨大的機會獲得市場份額和錢包份額

Got it. And then the follow-up, this is just discussing opportunities to expand into some adjacent services, obviously rentals, prime example. Just curious what are the opportunities, but I think also as importantly, how do you decide what opportunities to pursue? I mean, given your size you're still down small-cap, you've got some great wallet share to go, but how do you decide what is the appropriate business to go after and while still staying focused on that ODR, that broader core ODR opportunity?

知道了。接下來，這只是討論擴展到一些相鄰服務的機會，顯然是租賃，最好的例子。只是好奇機會是什麼，但我認為同樣重要的是，您如何決定追求哪些機會？我的意思是，考慮到你的規模，你仍然是小盤股，你有一些很大的錢包份額可以去，但你如何決定什麼是合適的業務來追求，同時仍然專注於ODR，更廣泛的業務核心 ODR 機會？

Sure. So, in our investor deck, we have a new slide that talks about our unique offerings, slide 10 in there. And there's, I think, 10 different offerings in the way that we've kind of separated out Gerry, is that there's three or four of them that are directly related to OpEx, the rental critical services, data-driven solutions.

當然。因此，在我們的投資者平台中，我們有一張新幻燈片，其中的幻燈片 10 討論了我們獨特的產品。我認為，我們將 Gerry 分開的方式有 10 種不同的產品，其中有三到四種與營運支出、租賃關鍵服務、數據驅動的解決方案直接相關。

There's a not a group of them that's really related to the CapEx, which is MEP infrastructure projects, equipment upgrades and products and we have our PM services that we're doing program management and then there's kind of the more evolved offering.

其中沒有一組與資本支出真正相關，即 MEP 基礎設施項目、設備升級和產品，我們有我們正在進行專案管理的 PM 服務，然後還有更先進的產品。

So, we've kind of separated our mind, high-grade, (inaudible) going to make sure it's very measured and it's going to make sure that it aligns with the customers. So, very, very much thinking about this OpEx, type of smaller project work. And then we're really setting ourselves up for next year for the capital project work and again, some of these more evolved offering. So, it's a very measured strategy over a period of time. We're always trying not to do too much at once.

因此，我們已經將我們的想法分開，高級（聽不清楚）將確保它非常謹慎，並將確保它與客戶保持一致。因此，非常非常思考這種小型專案工作的營運支出。然後，我們真正為明年的資本項目工作做好準備，並再次提供其中一些更先進的產品。因此，這是一個在一段時間內非常謹慎的策略。我們總是盡量不要一次做太多事。

Got it. And maybe one quick question for Jayme. Obviously you gave the guidance $49 to $53 million on the adjusted EBITDA side. I believe there are a couple of add backs or write-ups of projects and sort of flat better term one timers in 2023 results.

知道了。也許還有一個簡單的問題想問杰梅。顯然，您在調整後的 EBITDA 方面給出了 49 至 5300 萬美元的指導。我相信在 2023 年的結果中會有一些項目的補充或記錄，以及更好的一期計時器。

I apologise, I had a right in front of me, but I think it was especially in Q3 or could you go over some of those add-backs from 2023 because, I think that gives a little bit better apples comparison on the EBITDA increase, projected EBITDA increased to '24 over '23?

我很抱歉，我前面有一個權利，但我認為尤其是在第三季度，或者您可以回顧一下 2023 年以來的一些回加，因為我認為這在 EBITDA 增長方面提供了更好的蘋果比較，預計EBITDA 較23 增至24？

Yes, good point, Gerry. So, yes, our adjusted EBITDA was $46.8 million. And then we did have some non-recurring events that we did talk about and disclosed where we had the claim recovery in California that we had an upside from that of $1.2 million. And then we also had some projects and some other upsides that we took that would be nonrecurring as well. And that was about another $1.2 million in Q3. And then we also had about $500,000. So in total, if you look at that in the adjusted EBITDA really is closer to like $43.9 if you take out those one-time events.

是的，好點，格里。所以，是的，我們調整後的 EBITDA 為 4680 萬美元。然後我們確實討論了一些非重複事件，並披露了我們在加州獲得索賠追償的情況，我們獲得了 120 萬美元的收益。然後我們還有一些項目和其他一些我們認為不會重複出現的好處。這相當於第三季另外 120 萬美元。然後我們還有大約 50 萬美元。因此，總的來說，如果剔除那些一次性事件，調整後的 EBITDA 確實接近 43.9 美元。

Got it. Super helpful. That saves me a few minutes, so I appreciate it. I'll jump back in queue.

知道了。超有幫助。這節省了我幾分鐘的時間，所以我很感激。我會插回隊列。

Thank you.

謝謝。

Thank you. There are no further questions at this time. I'd like to turn the floor back over to Michael McCann for closing comments.

謝謝。目前沒有其他問題。我想把發言權交還給邁克爾·麥肯 (Michael McCann) 以供結束發言。

Thank you all for your continued interest in Limbach. We look forward to seeing many of you the Roth Conference next week. Do you have any additional questions, please reach out to Julie Kegley at Financial Profiles. Thank you and have a great day.

感謝大家對林巴赫的持續關注。我們期待下週在羅斯會議上見到你們中的許多人。如果您還有任何其他問題，請聯絡 Financial Profiles 的 Julie Kegley。謝謝您，祝您有美好的一天。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。