Limbach Holdings Inc (LMB) 2024 Q1 法說會逐字稿

Good morning, and welcome to the first quarter 2024 Limbach Holdings earnings conference call and webcast. (Operator Instructions)

早安，歡迎來到 Limbach Holdings 2024 年第一季財報電話會議和網路直播。（操作員說明）

I will now turn the conference over to your host, Julie Kegley of Financial Profiles. You may begin.

現在我將把會議交給主持人、《財務概況》雜誌的朱莉·凱格利 (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 first quarter of 2024. Yesterday, Limbach Holdings issued its earnings release and filed its Form 10-Q for the period ended March 31, 2024.

早安，感謝您今天加入我們討論 Limbach Holdings 2024 年第一季的財務表現。昨天，Limbach Holdings 發布了截至 2024 年 3 月 31 日期間的收益報告並提交了 10-Q 表格。

Both documents as well as an updated investor presentation are available on the Investor Relations section of the company's website limbachinc.com. Management may refer to select slides during today's call and encourage investors to review the presentation in its entirety.

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。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。

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.

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 under federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate or other comparable words and phrases.

在開始之前，我想提醒您，今天的評論將包括聯邦證券法規定的前瞻性陳述。前瞻性陳述透過諸如將、是、打算、相信、期望、預期或其他類似的詞語和短語來識別。

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.

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 10-K and 10-Q.

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，包括表格 10-K 和 10-Q 的報告。

Please note that on today's call we will be referring to some non-GAAP measures. You can find the reconciliation of these historical non-GAAP measures to the most directly comparable GAAP measures in our first quarter earnings release and in our investor presentation slide deck, both of which can be found on Limbach's Investor Relations website and have been furnished in the Form 8-K filed with the SEC.

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。您可以在我們的第一季收益發布和投資者簡報幻燈片中找到這些歷史非GAAP 指標與最直接可比較的GAAP 指標的對賬，這兩者都可以在Limbach 的投資者關係網站上找到，並已在向 SEC 提交 8-K 表。

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. Welcome to our stockholders and analysts as well as those who may be new to Limbach. Thank you all for joining our call today. So looking at the highlights of the first quarter, I'd like to remind everyone of the key elements of our business strategy.

大家，早安。歡迎我們的股東和分析師以及林巴赫的新用戶。感謝大家今天加入我們的電話會議。所以回顧第一季的亮點，我想提醒大家我們業務策略的關鍵要素。

First, we are shifting our business mix from general contractor relationships or GCR to owner direct relationships or ODR. Two, we are expanding margins to evolve service offerings. And three, we are scaling the business through strategic acquisitions, whether those are tuck-ins, expansion into new geographies or additional service offerings.

首先，我們正在將業務組合從總承包商關係（GCR）轉變為業主直接關係（ODR）。第二，我們正在擴大利潤以發展服務產品。第三，我們正在透過策略性收購來擴展業務，無論是收購、擴展到新的地區或提供額外的服務。

We focus on six key verticals, healthcare, industrial manufacturing, data centers, life science, higher education and culture entertainment. These industries require uninterrupted building operations that cannot fail.

我們專注於六個關鍵垂直產業：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。這些行業需要不間斷的、不能失敗的建築運作。

We provide building owners with solutions that serves to maintain and upgrade their mission critical mechanical, electrical and plumbing infrastructure. We believe our strategy and core vertical focus is the best way to grow earnings and create stockholder value.

我們為業主提供解決方案，用於維護和升級其關鍵任務機械、電氣和管道基礎設施。我們相信我們的策略和核心垂直重點是增加收益和創造股東價值的最佳方式。

So why do we see it this way? Already our segment is a higher margin, lower risk business model that is less impacted by macroeconomic trends. By shifting our business mix to the ODR segment versus the GCR segment, we are building a more stable, economically resilient business with a better long-term growth profile.

那為什麼我們會這樣看呢？我們的細分市場已經是利潤率更高、風險更低的商業模式，受宏觀經濟趨勢的影響較小。透過將我們的業務組合轉向 ODR 細分市場而不是 GCR 細分市場，我們正在建立一個更穩定、更具經濟彈性的業務，並具有更好的長期成長前景。

Additionally, this business model does not require significant capital expenditure investments as expected to generate strong free cash flows. By expanding and evolving our service offerings, we believe that we can grow market share with existing customers and position Limbach for reoccurring revenue streams from these owner-direct relationships, while flexing with our customer needs between operating and capital project budgets.

此外，這種商業模式不需要大量的資本支出投資，正如預期的那樣，可以產生強勁的自由現金流。透過擴展和發展我們的服務產品，我們相信我們可以增加現有客戶的市場份額，並使Limbach 從這些所有者直接關係中獲得經常性收入流，同時在營運和資本項目預算之間靈活滿足客戶需求。

All this equals a business with attractive organic and acquisition growth opportunities less volatility and more consistent execution. Our first quarter results demonstrate that our strategies working. In Q1 gross profit increased by 18.5% over Q1 2023 to $31.1 million.

所有這些都意味著企業擁有有吸引力的有機成長和收購成長機會，波動性較小，執行力更一致。我們第一季的業績顯示我們的策略正在發揮作用。第一季毛利比 2023 年第一季成長 18.5%，達到 3,110 萬美元。

Additionally, gross margin increased to a record 26.1% compared to 21.7% last year. Adjusted EBITDA increased 35.4% over Q1 last year to $11.8 million. Revenue was down slightly, which is a result of the intentional strategy to scale down the GCR business in favor ODR and therefore increase margins.

此外，毛利率從去年的 21.7% 增至創紀錄的 26.1%。調整後 EBITDA 比去年第一季成長 35.4%，達到 1,180 萬美元。收入略有下降，這是由於有意縮減 GCR 業務以支持 ODR 業務從而提高利潤率的策略的結果。

Q1 is a seasonally slower quarter due to weather and customer budgets. We anticipated this and highlighted this in our last call, we began gaining momentum in March, and we expect to sustain this for the rest of the year with our seasonally stronger quarters.

由於天氣和客戶預算的原因，第一季是季節性放緩的季度。我們預料到了這一點，並在上次電話會議中強調了這一點，我們在三月開始獲得動力，我們預計在今年剩餘時間裡，我們的季度表現會因季節性強勁而保持這種勢頭。

From a vertical market demand perspective, healthcare continues to be our top priority. The operations spending, healthcare tends to be steady and we are starting to see signs of some of our customers that infrastructure spending is gaining momentum.

從垂直市場需求來看，醫療健康仍是我們的首要任務。營運支出、醫療保健趨於穩定，我們開始看到一些客戶的跡象顯示基礎設施支出正在成長動能。

In fact we're already working our customers to build spend plans for fiscal year 2025. Another vertical market that continues to be very strong industrial and manufacturing. We see a lot of work that is being performed in the Midwest into the Southeast. We are seeing companies continue to invest and expand their production lines.

事實上，我們已經在與客戶合作制定 2025 財年的支出計畫。另一個垂直市場仍然非常強勁，工業和製造業。我們看到許多工作正在中西部到東南部進行。我們看到公司繼續投資並擴大生產線。

The ODR business grew in Q1 as a result of the two acquisitions we made last year. In addition to substantial organic growth, we continue to accelerate the mix shift to ODR from GCR with ODR comprising 62.4% of revenue for the quarter an increase of 55.1% against Q4 2023. Keep in mind that last quarter we set a range for the year between 60% to 70%, we are already well within that range.

由於我們去年進行了兩次收購，ODR 業務在第一季有所成長。除了大幅有機成長外，我們還繼續加速從 GCR 向 ODR 的混合轉型，ODR 佔本季營收的 62.4%，較 2023 年第四季成長 55.1%。請記住，上個季度我們設定了 60% 到 70% 之間的年度範圍，我們已經完全處於該範圍內。

In addition to increasing margins year-over-year growth, we're expanding margins by evolving our service offerings. For example, as I mentioned last quarter, we are investing approximately $4 million in portable HVAC rental equipment to provide urgent and critical system solutions for our customers.

除了提高利潤率逐年增長外，我們還透過發展我們的服務產品來擴大利潤率。例如，正如我上季度提到的，我們投資約 400 萬美元購買便攜式 HVAC 租賃設備，為客戶提供緊急且關鍵的系統解決方案。

This strategic investment is designed to provide additional service offerings and grow our market share with existing customers. We're now just entering cooling season we expect to see this new offering to take hold over the next few months and begin realizing revenue in the third quarter.

這項策略性投資旨在提供額外的服務並擴大我們在現有客戶中的市場份額。我們現在剛進入冷卻季節，我們預計這項新產品將在未來幾個月內佔據主導地位，並在第三季開始實現收入。

There is ample opportunity to grow our business with customers through our existing services as well. Our strategies account focused and customer centric. This starts with establishing daily on-site presence, which is typically focused on responding to operator expense needs, but the account team is also focused on building customers' capital plans.

透過我們現有的服務，還有充足的機會與客戶發展業務。我們的策略以客戶為中心，以客戶為中心。首先是建立日常現場服務，通常專注於回應營運商的費用需求，但客戶團隊也專注於建立客戶的資本計畫。

One of our key accounts in a local market recently came to us with the need to quickly transition funding into capital projects. Because we have an established relationship with them and they understand we are capable of providing engineered solutions.

我們在當地市場的一位重要客戶最近找到我們，需要將資金快速轉移到資本項目中。因為我們與他們建立了良好的關係，並且他們了解我們有能力提供工程解決方案。

They quickly turned to us develop a capital project funding plant under a sole source design-build arrangement, thereby gaining competitive advantages relative to the competition in the marketplace and continuing develop our long-term relationship with that customer.

他們很快就要求我們在獨家設計建造安排下開發一個資本項目融資工廠，從而獲得相對於市場競爭的競爭優勢，並繼續發展我們與該客戶的長期關係。

Turning to the progress on acquisitions, we're pleased with the contributions from the two we made last year, ACME industrial and industrial air and the growth they contributed to our ODR business. As I mentioned earlier, one of the key strategies scaling the business through strategic acquisitions.

談到收購的進展，我們對去年 ACME 工業和工業空氣這兩家公司所做的貢獻以及他們為我們的 ODR 業務所做的成長感到高興。正如我之前提到的，關鍵策略之一是透過策略性收購來擴展業務。

We currently have a robust pipeline, both tuck-ins and geographic expansion acquisition candidates. We continually evaluate them to find the right strategic fit, which is critical to the success of the acquisition. We continue to be extremely selective about the business that we pursue and our strong free cash flow and balance sheet will enable us to execute such acquisitions when we find the right target.

目前，我們擁有強大的管道，包括收購候選者和地理擴張收購候選者。我們不斷評估它們以找到合適的策略契合點，這對於收購的成功至關重要。我們繼續對我們追求的業務進行嚴格挑選，強大的自由現金流和資產負債表將使我們能夠在找到正確的目標時執行此類收購。

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

現在，我將把它交給傑米，以提供詳細的財務要點，然後再返回補充評論。傑米？

Thank Mike. Our first quarter 2024 earnings press release and Form 10-Q were filed yesterday and provide comprehensive details of the company's financials, I will focus on the highlights from the first quarter. During the quarter, we generated consolidated revenue of $119 million versus $121 million in Q1 of 2023. And as expected, consolidated revenue declined by 1.7% due to our focus to shift to our ODR segment.

謝謝邁克。我們的 2024 年第一季度收益新聞稿和 10-Q 表格已於昨天提交，提供了公司財務狀況的全面詳細信息，我將重點關注第一季度的亮點。本季度，我們的綜合收入為 1.19 億美元，而 2023 年第一季為 1.21 億美元。正如預期的那樣，由於我們的重點轉向 ODR 領域，綜合收入下降了 1.7%。

ODR revenue grew 26.5% to $74.3 million, while GCR revenue declined 28.2% to $44.7 million. As Mike indicated, the decline in GCR revenue is intentional as we continue to execute our mix shift strategy to ODR. In the first quarter, ODR revenue was 62.4% of consolidated revenue, up from 48.5% last year. This is driving our gross profit and adjusted EBITDA results.

ODR 營收成長 26.5% 至 7,430 萬美元，而 GCR 收入下降 28.2% 至 4,470 萬美元。正如 Mike 所指出的，GCR 收入的下降是有意為之，因為我們繼續執行向 ODR 的混合轉型策略。第一季度，ODR 收入佔合併收入的 62.4%，高於去年的 48.5%。這推動了我們的毛利和調整後 EBITDA 表現。

Total gross profit increased 18.5% to $31.1 million for the quarter from $26.2 million in Q1 2023 because of the mix shift to ODR. ODR gross profit contributed 71.3% of the total gross profit dollars or $22 million. ODR gross profit increased $6.2 million or 39.3%, driven by higher revenue with expanded gross margins in Q1 to 29.8% versus 27.1% in Q1 of 2023.

由於混合轉向 ODR，該季度的總毛利從 2023 年第一季的 2,620 萬美元增長了 18.5%，達到 3,110 萬美元。ODR 毛利佔總毛利的 71.3%，即 2,200 萬美元。ODR 毛利增加了 620 萬美元，即 39.3%，原因是收入增加，第一季毛利率擴大至 29.8%，而 2023 年第一季為 27.1%。

GCR gross profit decreased $1.4 million or 13.5% due to lower revenue with our focus on smaller and shorter duration projects at higher margins. This enabled GCR gross margins to expand to 20% from 16.6% in Q1 of 2023.

GCR 毛利下降了 140 萬美元，即 13.5%，原因是我們專注於利潤率較高的規模較小、工期較短的項目，導致收入下降。這使得 GCR 的毛利率從 2023 年第一季的 16.6% 擴大至 20%。

As a result, gross margin on a consolidated basis for the first quarter was a record 26.1% as Mike mentioned, up from 21.7% in the prior year. During the quarter, SG&A expense increased approximately $1.8 million to $22.9 million from $21 million in Q1 of 2023.

因此，正如麥克所提到的，第一季綜合毛利率達到創紀錄的 26.1%，高於去年同期的 21.7%。本季度，SG&A 費用從 2023 年第一季的 2,100 萬美元增加約 180 萬美元至 2,290 萬美元。

As a percentage of revenue, SG&A expense was 19.2%, up from 17.4% in 2023, approximately $1.1 million of the $1.8 million increase was primarily due to our two new acquisitions that were not part of our company in Q1 of 2023.

SG&A 費用佔收入的百分比為 19.2%，高於 2023 年的 17.4%，增加的 180 萬美元中約 110 萬美元主要是由於我們 2023 年第一季不屬於我們公司的兩項新收購。

For 2024, we are still targeting SG&A expense as a percentage of consolidated revenue to be around 18% to 19% as we continue to invest in our ODR business to drive growth. Adjusted EBITDA for the first quarter was $11.8 million, up 35.4% from $8.7 million in Q1 of 2023.

到 2024 年，我們仍將 SG&A 費用佔合併收入的比例目標定為 18% 至 19% 左右，因為我們將繼續投資 ODR 業務以推動成長。第一季調整後 EBITDA 為 1,180 萬美元，比 2023 年第一季的 870 萬美元成長 35.4%。

Adjusted EBITDA margin for the first quarter was 9.9%, up 37.7% from 7.2% in Q1 of 2023. We had net income for the first quarter of $7.6 million or $0.64 per diluted share compared to $3 million or $0.27 per diluted share in 2023.

第一季調整後 EBITDA 利潤率為 9.9%，較 2023 年第一季的 7.2% 成長 37.7%。我們第一季的淨利潤為 760 萬美元，即稀釋後每股收益 0.64 美元，而 2023 年淨利潤為 300 萬美元，即稀釋後每股收益 0.27 美元。

This represents a 153.5% growth in net income and does include a $2.4 million tax benefit related to the vesting of stock-based compensation awards that vested in the current period at a higher spec prices than when we were granted.

這意味著淨利潤增加了 153.5%，並且確實包括與股票薪酬獎勵歸屬相關的 240 萬美元稅收優惠，這些獎勵在本期以比我們授予時更高的規格價格歸屬。

Turning to cash flow, we had $3.9 million operating cash outflow during the first quarter compared to an operating cash inflow of $9.4 million in 2023. This difference was primarily driven by the timing of billing and collections as it relates to accounts receivable.

談到現金流，我們第一季的營運現金流為 390 萬美元，而 2023 年的營運現金流入為 940 萬美元。這種差異主要是由與應收帳款相關的計費和收款時間所造成的。

Cash flow from investing activities reflected the purchase of $2 million of rental equipment in the quarter. The remaining investment of $2 million in rental equipment was on order at the end of the quarter, and we should see the cash usage in Q2.

投資活動產生的現金流反映了本季購買了 200 萬美元的租賃設備。剩餘的 200 萬美元租賃設備投資已在本季末訂購，我們應該會在第二季看到現金使用情況。

Also during the quarter, we had $5.2 million of cash outflow for the taxes paid for the net share settlement of equity awards. Of this amount, $4.3 million of cash is paid to the taxing authorities directly by the company by withholding shares rather than selling the shares in the open market to cover the taxes.

同樣在本季度，我們有 520 萬美元的現金流出用於為股權獎勵的淨股份結算所繳納的稅款。其中，430萬美元的現金是由公司透過預扣股票而不是在公開市場上出售股票的方式直接向稅務機關支付的。

This was done as part of our focus on capital allocation to create stockholder value based on the stock prices on the vesting dates of these awards, the company would have issued [88,295 shares] of common stock in the open market, if the company did not elect to withhold to cover vested.

這樣做是我們專注於資本分配的一部分，目的是根據這些獎勵授予日的股價創造股東價值，如果公司不這樣做，公司將在公開市場上發行[88,295股]普通股。 。

Free cash flow for the quarter was $11.8 million compared to $6.6 million in Q1 2023, an increase of 77.5%, which we define as cash flow from operations minus changes in working capital, minus capital expenditures, excluding our investment in rental equipment, which is approximately $2 million in Q1.

本季的自由現金流為1,180 萬美元，與2023 年第一季的660 萬美元相比，成長了77.5%，我們將其定義為營運現金流減去營運資本變化，減去資本支出，不包括我們對租賃設備的投資，即第一季約為 200 萬美元。

Free cash flow conversion of adjusted EBITDA for the first quarter was 100.3% versus 76.4% in the first quarter last year. We continue to target a free cash flow conversion rate of approximately 70% for 2024. Excluding our investment in rental equipment, which is approximately $4 million. We continue to expect CapEx for 2024, excluding investment in rental equipment to be approximately $3 million due to the acceleration of our ODR strategy.

第一季調整後 EBITDA 的自由現金流轉換率為 100.3%，去年第一季為 76.4%。我們繼續將 2024 年自由現金流轉換率目標定為約 70%。不包括我們在租賃設備方面的投資，約 400 萬美元。由於我們 ODR 策略的加速，我們仍預期 2024 年的資本支出（不包括租賃設備投資）約為 300 萬美元。

Turning to our balance sheet, at the end of Q1, we had $48.2 million in cash and cash equivalents and $10 million borrowed on our $50 million revolving credit facility at a weighted average interest rate of 5.7%. Our balance sheet remains strong, and we are well-positioned to make the necessary investments to drive our ODR expansion and acquisition strategy.

轉向我們的資產負債表，截至第一季末，我們擁有 4,820 萬美元的現金和現金等價物，以及透過 5,000 萬美元的循環信貸額度借入的 1,000 萬美元，加權平均利率為 5.7%。我們的資產負債表仍然強勁，我們有能力進行必要的投資來推動我們的 ODR 擴張和收購策略。

Now I'll turn it back to Mike for closing remarks.

現在我將把它轉回給麥克做結束語。

Thank you, Jayme. 2024 is off to a great start, and I'm very optimistic about Limbach future, not only 2024, but for years ahead. There's still tremendous opportunity to grow our wallet share with customers. We continue to evolve the company and shift towards a greater focus on working directly for building owners.

謝謝你，杰梅。 2024 年是一個好的開端，我對林巴赫的未來非常樂觀，不僅是 2024 年，而且是未來幾年。我們仍然有巨大的機會來增加我們與客戶的錢包份額。我們不斷發展公司，並更加重視直接為業主提供服務。

We have added dedicated account and sales staff in order to become embedded with our top customers and partnering with them for years to come. Because of the progress we made in Q1 and our optimism about the rest of the year we are increasing our guidance.

我們增加了專門的客戶和銷售人員，以便融入我們的頂級客戶並在未來幾年與他們合作。由於我們在第一季取得的進展以及我們對今年剩餘時間的樂觀態度，我們正在增加我們的指導。

We now expect ODR to be 65% to 70% of total revenue. That's an increase from 60% on the low end implies ODR revenue growth of 25% to 36%. We are also increasing our adjusted EBITDA guidance to $51 million to $55 million up from $49 million to $53 million.

我們現在預計 ODR 將佔總收入的 65% 至 70%。低端 60% 的成長意味著 ODR 收入成長 25% 至 36%。我們還將調整後的 EBITDA 指引從 4,900 萬美元提高到 5,300 萬美元，提高到 5,100 萬美元到 5,500 萬美元。

As a result, we expect to see full year adjusted EBITDA margin in the range of 9.6% to 10.8% for 2024 based on our unchanged full year total revenue guidance of $510 million to $530 million. I think it's important that investors see Limbach has more than a mix shift story.

因此，基於 5.1 億至 5.3 億美元的全年總收入指引不變，我們預計 2024 年全年調整後 EBITDA 利潤率將在 9.6% 至 10.8% 之間。我認為重要的是，投資者應該看到林巴赫不僅僅是一個混合輪班的故事。

We are transitioning as fast as possible to our optimal mix once the optimal mix shift between ODR and GCR has achieved top line consolidated revenue to reflect our growth, both organically from acquisitions. We continue to be excited by our prospects, the long runway of growth we envision and by the significant opportunity we have to create stockholder value.

一旦 ODR 和 GCR 之間的最佳組合轉變實現了頂線合併收入以反映我們的成長（兩者均來自收購），我們將盡快過渡到最佳組合。我們繼續對我們的前景、我們所設想的長期成長道路以及我們創造股東價值的重大機會感到興奮。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Rob Brown, Lake Street Capital.

羅布布朗，湖街資本。

Morning, Mike and Jayme.

早上好，麥克和傑米。

Good morning.

早安.

Good morning.

早安.

Congratulations on the progress. On the ODR growth, pretty strong outlook there. Just wondering if you give a sense of some of the macro themes driving that. Is this a catch-up in spending or is this really a kind have driven growth driven by your new sales effort and kind of focus on the customer strategy?

祝賀取得的進展。就 ODR 成長而言，前景相當強勁。只是想知道您是否對推動這一趨勢的一些宏觀主題有所了解。這是支出的追趕還是這確實是由您的新銷售努力和對客戶策略的關注所推動的成長？

Rob, great question. From an ODR growth perspective, a lot of this really comes down to our strategy, which is to focus on six key vertical markets where the demand is durable. We're working in mission critical facilities where their operations can't go down.

羅布，好問題。從 ODR 成長的角度來看，這很大程度上取決於我們的策略，即專注於需求持久的六個關鍵垂直市場。我們在關鍵任務設施中工作，他們的營運不能中斷。

So probably the best way to characterize this is just going to highlight three different vertical markets that are very important to us. One is healthcare we've made a big investment for a sales perspective to capture the OpEx spend. There's been a lot of deferred maintenance that we've been able to capture.

因此，描述這一點的最佳方法可能是強調對我們非常重要的三個不同的垂直市場。一是醫療保健，我們從銷售角度進行了大量投資，以捕獲營運支出。我們已經能夠捕捉到大量的延期維護。

I mean, I would tell you, even looking out into the next year or so, we're starting to build budgets right now, and we're starting to see capital projects reenergized. Industrial manufacturing is still very strong a lot of that comes in the Midwest and Southeast, tremendous opportunity of that as well, too. And that's from a couple of the acquisitions that we did we've been able to capture that vertical market.

我的意思是，我會告訴你，即使展望明年左右，我們現在也開始製定預算，我們開始看到資本項目重新煥發活力。工業製造業仍然非常強勁，其中許多來自中西部和東南部，這也有巨大的機會。這得益於我們所做的幾項收購，我們已經能夠佔領這個垂直市場。

I mean the last I want to highlight is data center. So a lot of these data centers get old quick. Their equipment is about a quarter of the from a runtime perspective. So it needs to be replaced quickly we've got lots of questions from a lot of customers on relatively new data centers where there's upgrades that need to happen.

我的意思是我最後要強調的是資料中心。因此，許多資料中心很快就會老化。從運行時的角度來看，他們的設備大約是四分之一。因此，它需要快速更換，我們收到了很多客戶對相對較新的資料中心提出的許多問題，這些資料中心需要進行升級。

So I think that's going to be another opportunity as we look for further down the line. So it definitely think it really comes down to our focus on those mission critical vertical markets where their infrastructure is actually critical to their operation.

所以我認為這將是我們進一步尋找的另一個機會。因此，它肯定認為這確實取決於我們對那些關鍵任務垂直市場的關注，這些市場的基礎設施實際上對其運作至關重要。

Great, thank you. And then maybe on the rental business, you've highlighted a bit how much more CapEx do you think that requires or how do you see that growing or is this just a nice adder to the service activity that you do and it will be kind of the CapEx for this year that don't expect more than that?

太好了謝謝。然後，也許在租賃業務上，您強調了您認為需要多少資本支出，或者您如何看待這種增長，或者這只是您所做的服務活動的一個很好的補充，這將是一種今年的資本支出預計不會超過這個數字？

The rental equipment we purchased, it's really it's cooling basis, not heating base so right now as things start to get really warmer in our markets starting from the [south up Elite] to the Northeast, we anticipate that equipment start to move.

我們購買的租賃設備實際上是冷卻基礎，而不是加熱基礎，所以現在隨著我們的市場從[南方精英]到東北部開始變得真正變暖，我們預計設備開始移動。

So the reason why we invested in this equipment if you think about it, we're in a building we've invested these on-site account managers. We are currently in the path of captured the quick repair work and our goal is to capture, obviously the capital projects, but there's a gap between repair work and capital projects a lot of time is filled by that rental business, rental equipment.

所以，如果你想一想，我們投資這些設備的原因是，我們在一棟大樓裡投資了這些現場客戶經理。我們目前正處於搶佔快速維修工作的道路上，我們的目標顯然是搶佔資本項目，但維修工作和資本項目之間存在差距，許多時間是由租賃業務、租賃設備填補的。

So it's more about providing a complete offering that's that end to end from repair to replacement in that middle location as well too. Jayme anything you want to add?

因此，更重要的是提供完整的產品，從維修到更換的端到端服務也在中間位置提供。傑米你還有什麼要補充的嗎？

Yeah, Rob we had flagged $4 million for equipment this year, we actually paid cash out of $2 million during the first quarter but it is on order. So you'll see the rest of that cash flow that will hit impact most likely in Q2 as we proceed that product.

是的，羅布，我們今年標記了 400 萬美元的設備費用，實際上我們在第一季支付了 200 萬美元的現金，但它是按訂單生產的。因此，當我們繼續開發該產品時，您將看到其餘的現金流量最有可能在第二季產生影響。

So this timeline we've designated $4 million is our budget for the year of rental equipment. But as Mike said, as we get further into that hot months, if there's need an opportunity, we may reassess that elected maybe expand the fleet.

因此，我們指定 400 萬美元的時間表是我們當年租賃設備的預算。但正如麥克所說，隨著我們進一步進入炎熱的月份，如果需要機會，我們可能會重新評估是否會擴大機隊。

Okay, great. And then lastly, on the M&A environment, I know you've looked at things for quite a while. How active do you expect to be there or is it more opportunistic as you find things they mature?

好的，太好了。最後，關於併購環境，我知道您已經研究了很長一段時間。您期望在那裡有多活躍，或者當您發現事物成熟時，它是否會更加機會主義？

Our goal is to be selective and to be opportunistic so there's definitely a robust pipeline out there. I look and I would also highlight, obviously the two that we did last year, which is industrial and ACME industrial those are working out very well. We're very excited about the customer penetration.

我們的目標是有選擇性和機會主義，所以肯定有一個強大的管道。我看了一下，我還要強調一下，顯然我們去年所做的兩項工作，即工業和 ACME 工業，效果非常好。我們對客戶滲透率感到非常興奮。

So for us, it's really making sure that we get the right fit that we're able to integrate with the company to get synergy, not necessarily just from the deal, but how that company now fits into the overall Limbach. So I still have a robust pipeline we're being extremely selective, but our goal is to do acquisitions, so.

因此，對我們來說，真正確保我們能夠與該公司整合以獲得協同效應，不僅是透過交易，還包括該公司現在如何融入整個林巴赫。所以我仍然有一個強大的管道，我們非常有選擇性，但我們的目標是進行收購，所以。

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

好的，太好了。謝謝你，我去翻一下。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Gerry Sweeney, Roth Capital Partners.

格里·斯威​​尼，羅斯資本合夥人。

Hi, this is Brandon Rogers on for Jerry Sweeney. Thanks for taking my question. Thank you, so you guys are successfully navigating the shift to ODR, you raised the percentage of revenue of 65% to 70%. When do you expect to reach the optimized segment mix shift. And once you reach that optimizing mix, where do you think -- where do you see margins and revenue at?

大家好，我是傑瑞·斯威尼的布蘭登·羅傑斯。感謝您提出我的問題。謝謝你們，你們成功地實現了向 ODR 的轉變，你們將收入百分比從 65% 提高到了 70%。您預計什麼時候能夠達到優化的分段混合班次。一旦達到最佳化組合，您認為利潤和收入在哪裡？

Great question from as you stated, we've adjusted from the 70% target to 65% to 70%. We are definitely trying to make that transition as fast as possible and how we're doing that is really in a couple of different pieces.

正如您所說，這是一個很好的問題，我們已將目標從 70% 調整為 65% 至 70%。我們肯定會努力盡快實現這一轉變，而我們的具體做法實際上是透過幾個不同的部分來實現的。

For this year, we've invested in sales resources, on-site account managers to really capture that OpEx. Our goal is to make additional investments from a capital project perspective, especially going into 2025, which really will help continue to generate that revenue growth.

今年，我們投資了銷售資源和現場客戶經理，以真正抓住營運支出。我們的目標是從資本項目的角度進行額外投資，尤其是進入 2025 年，這確實將有助於繼續實現收入成長。

So from a long-term perspective, in our deck we pointed to beyond 2024 getting to a point where it's approximately 80% owner direct 20% GCR. So we're moving as fast as possible in order to get the optimal mix.

因此，從長遠角度來看，我們在我們的套牌中指出，到 2024 年後，將達到約 80% 所有者直接持有 20% GCR 的水平。因此，我們正在盡可能快地採取行動，以獲得最佳組合。

Obviously, once we achieve that mix there's a lot more margin expansion on top of that. And I think also from a margin expansion so it's not just the mix, but it's also our ability to introduce service offerings as well, too. And obviously, finishing and getting to that optimal mix having the right offerings, there's a pickup, I think on both sides of it.

顯然，一旦我們實現了這個組合，除此之外還會有更多的利潤擴張。我認為，從利潤率擴張的角度來看，這不僅是組合的問題，也是我們推出服務產品的能力。顯然，完成並獲得具有正確產品的最佳組合，我認為雙方都會有一個提升。

Awesome, thank you for the color. And then just one more for me, we discussed acquisitions a little bit, but can you just discuss how the successful acquisition integration with ACME industrial air. And as such, you mentioned a robust pipeline, is there any ideal targets that you have coming down the pipe in the next three to six months, maybe nine months out.

太棒了，謝謝你的顏色。然後對我來說，我們討論了一點收購，但您能否討論如何成功收購與 ACME 工業空氣的整合。因此，您提到了一個強大的管道，在未來三到六個月，也許九個月內，您是否有任何理想的目標。

Sure. So just to talk a little bit about both of the deals that we've done. So industrial air very much in the industrial manufacturing space. A couple of key components which has made that deal successful so far is their ability to have a concentrated owner direct base that is expandable.

當然。簡單談談我們已經完成的兩筆交易。因此，工業空氣在工業製造領域非常重要。迄今為止，使該交易成功的幾個關鍵因素是他們能夠擁有可擴展的集中所有者直接基礎。

They also have an equipment line that allows us to have an installed base similar to an OEM between customers, the equipment offering that they have. And I would also tell you that from a cultural fit as well to those three components have really we're excited about not only the opportunity right now, but also the future opportunity industrial.

他們還擁有一條設備生產線，使我們能夠在客戶之間建立類似於 OEM 的安裝基礎，提供他們所提供的設備。我還想告訴你，從文化契合度以及這三個組成部分來看，我們不僅對現在的機會感到興奮，而且對未來的工業機會感到興奮。

From an ACME perspective, they are also in the industrial vertical market, hydro different types of industrial manufacturers. So they've introduced us to several new clients with future spend down the line as well, too. So cultural fit, owner-direct customers, expansion opportunities those are really the three key components that both of those deals have.

從ACME的角度來看，他們也是在工業垂直市場、水電不同類型的工業製造商。因此，他們向我們介紹了幾位新客戶，並為我們提供了未來的支出。因此，文化契合度、所有者直接客戶、擴張機會實際上是這兩筆交易所具有的三個關鍵組成部分。

So looking down the line and we are continuing to look through a plenty of opportunities, a robust pipeline. We're trying to be selective and obviously, we're trying to. We want to get deals done, but we want to get the right deals done, so.

因此，展望未來，我們將繼續尋找大量機會和強大的管道。我們正在努力進行選擇性，顯然，我們正在努力這樣做。我們希望完成交易，但我們希望完成正確的交易，所以。

Awesome, thank you so much. Appreciate you taking my questions, I'll take the rest online-- offline.

太棒了，非常感謝。感謝您回答我的問題，我將在線上或線下回答其餘問題。

Thank you. And there are no further questions at this time. I'll hand the floor back to Mike McCann for closing comments.

謝謝。目前沒有其他問題。我將把發言權交還給邁克麥肯 (Mike McCann) 以供結束評論。

Thank you all for your participation today and for your continued interest in Limbach. If you have any additional questions, please reach out to Julie Kegley at Financial Profiles. Thank you and have a great day.

感謝大家今天的參與以及對林巴赫的持續關注。如果您有任何其他問題，請聯絡財務概況的 Julie Kegley。謝謝您，祝您有美好的一天。

Thanks. This concludes today's call. All parties may disconnect.

謝謝。今天的電話會議到此結束。所有各方都可以斷開連接。