Limbach Holdings Inc (LMB) 2024 Q2 法說會逐字稿

Good morning, and welcome to the second quarter 2024 Limbach Holdings earnings conference call and webcast. (Operator Instructions) I would now like to turn the call over to your host, Julie Kegley of Financial Profiles. You may begin.

早安，歡迎來到 Limbach Holdings 2024 年第二季財報電話會議和網路直播。（操作員指示）我現在想將電話轉給主持人 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 second quarter of 2024. Yesterday Limbach Holdings issued its earnings release and filed its Form 10-Q for the period ended June 30, 2024.

早安.感謝您今天加入我們討論 Limbach Holdings 2024 年第二季的財務表現。昨天，Limbach Holdings 發布了收益報告，並提交了截至 2024 年 6 月 30 日止期間的 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 at limbachinc.com. Management may refer to select slides during today's call and encourages 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該公司網站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 growth and 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，例如有關預期成長、利潤和營業利潤率的陳述，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's 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 向 SEC 提交的文件中，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 non-GAAP measures to the most directly comparable GAAP measures in our second quarter earnings release and in our investor presentation, both of which can be found on Limbach Investor Relations' website and have been furnished in the Form 8-K filed with the SEC. With that, I will now turn the call over to Mike McCann.

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。您可以在我們的第二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的GAAP 衡量標準的對賬，這兩者都可以在Limbach 投資者關係網站上找到，並已在表格8 中提供-K 向 SEC 提交。現在，我將把電話轉給麥克麥肯。

Good morning, and welcome to our stockholders, analysts, and interested investors. Thanks for joining us today. We are very fortunate to have long-term stockholders who have been with us for several years, as well as strong interest from new investors and those who are just learning about Limbach. So I think it's important to recap our strategy because this is the heart of everything we're doing as a company.

早安，歡迎我們的股東、分析師和有興趣的投資者。感謝您今天加入我們。我們非常幸運，擁有與我們合作多年的長期股東，以及新投資者和剛剛了解 Limbach 的投資者的濃厚興趣。因此，我認為回顧我們的策略很重要，因為這是我們作為一家公司所做的一切的核心。

We have a three-pillar strategy to change the way we do business. It differentiates us in the engineering and construction space. First, we are shifting our focus away from new construction towards maintenance, repairs, and upgrades of mission critical infrastructure on existing buildings, which lowers our risk profile.

我們制定了三支柱策略來改變我們的業務方式。它使我們在工程和建築領域中脫穎而出。首先，我們將重點從新建築轉向現有建築的關鍵任務基礎設施的維護、修理和升級，這降低了我們的風險狀況。

Our goal is to work directly with building owners to provide solutions that create value for them, which gives us the opportunity to earn higher margins. At the same time, we are intentionally scaling back our work on new construction projects, which are typically sold through a bidding process that results in lower margin, higher risk work.

我們的目標是直接與業主合作，提供為他們創造價值的解決方案，這使我們有機會賺取更高的利潤。同時，我們有意縮減新建設項目的工作規模，這些項目通常透過招標流程出售，導致利潤較低、工作風險較高。

As we shift away from general contractor relationships or GCR work, which is primarily new construction, towards owner-direct relationships or ODR work, which are primarily existing facilities, we are building a stronger business that can deliver consistent results across economic cycles.

隨著我們從總承包商關係或GCR 工作（主要是新建工程）轉向業主直接關係或ODR 工作（主要是現有設施），我們正在建立更強大的業務，能夠在整個經濟週期中提供一致的結果。

As an example, recently one of our data center customers approached us about performing additional work. Due to our focused account-centric approach, we and the building owner carved out several existing building capital projects that fit our profile, providing solutions and value to our customers.

舉個例子，最近我們的一位資料中心客戶聯絡我們，要求我們執行額外的工作。由於我們以客戶為中心的方法，我們和建築業主開發了幾個符合我們概況的現有建築資本項目，為我們的客戶提供解決方案和價值。

By executing our strategy, we continued to develop our partnership with our customer and demonstrated firsthand the value that Limbach can bring to the table. Because of this, the building owner now deploys our team on the most technical projects at their facility.

透過執行我們的策略，我們繼續發展與客戶的合作夥伴關係，並直接展示了 Limbach 可以帶來的價值。正因為如此，業主現在將我們的團隊部署到他們工廠的最具技術性的專案上。

In the first quarter, we set a target by the end of this year. ODR would comprise of 65% to 70% of our revenue. That compares to 50% last year. For Q2, we are at 67.7%, so we are well on our way to making this strategic transition a reality.

第一季度，我們設定了今年年底的目標。ODR 將占我們收入的 65% 至 70%。相比之下，去年這一數字為 50%。第二季度，我們的比例為 67.7%，因此我們正在順利實現這項策略轉型。

We have seen ODR revenue grow at 19.3% CAGR from 2019 to 2023. I believe in the future, when the mix of the businesses hits approximately 80% of ODR and 20% GCR, which would include the impact of acquisitions, we see the topline total revenue growth and continued margin expansion.

我們發現，從 2019 年到 2023 年，ODR 收入的複合年增長率為 19.3%。我相信，未來，當業務組合達到 ODR 約 80% 和 GCR 約 20%（其中包括收購的影響）時，我們將看到總收入成長和利潤率持續擴張。

The second pillar of our strategy is to further expand gross margins by evolving our service offerings to better support our customers. During the first half of the year, we invested approximately $4 million in rental equipment for indoor climate control, more specifically air-cooled chillers and air handling units.

我們策略的第二個支柱是透過改善我們的服務產品來進一步擴大毛利率，以更好地支持我們的客戶。今年上半年，我們投資了約 400 萬美元用於室內氣候控制租賃設備，更具體地說是風冷式冷水機組和空氣處理機組。

Our customers have often requested equipment procurement assistance from us in the past to avoid downtime. Now we can provide this service directly at attractive margins. This service offering expansion has proven quite successful as we have now deployed the entire fleet.

過去，我們的客戶經常要求我們協助採購設備，以避免停機。現在我們可以直接以有吸引力的利潤提供這項服務。事實證明，這種服務範圍的擴展非常成功，因為我們現在已經部署了整個機隊。

We have a three-year plan to layer on additional value-added services as our customers increasingly see us as an essential partner in maintaining their building's critical infrastructure.

隨著我們的客戶越來越多地將我們視為維護其建築關鍵基礎設施的重要合作夥伴，我們制定了一項三年計劃，以提供額外的增值服務。

The third pillar of our strategy is to scale the business, add key service offerings, and expand our footprint by making strategic acquisitions. Although it appears we have made limited progress to date, we can assure you that our acquisition pipeline is very strong.

我們策略的第三個支柱是擴大業務規模，增加關鍵服務產品，並透過策略收購擴大我們的足跡。儘管迄今為止我們取得的進展有限，但我們可以向您保證，我們的收購管道非常強大。

We remain disciplined in our selection of targeted companies and our due diligence process to ensure we achieve the right cultural and business fit. It takes time, but the pipeline is robust and we are not standing still.

我們在選擇目標公司和盡職調查過程中保持嚴格的紀律，以確保我們實現正確的文化和業務契合。這需要時間，但管道很強大，我們不會停滯不前。

We focus on six key verticals, healthcare, industrial manufacturing, data centers, life sciences, higher education, and cultural entertainment. These industries require uninterrupted building operations that cannot fail. We provide building owners with solutions and services to maintain and upgrade their mission-critical mechanical, electrical, and plumbing infrastructure.

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。我們為業主提供解決方案和服務，以維護和升級他們的關鍵任務機械、電氣和管道基礎設施。

We believe we have the right strategy and the right verticals to not only grow earnings while increasing margins, but also improve the quality of our business, while simultaneously reducing risk.

我們相信，我們擁有正確的策略和正確的垂直領域，不僅可以在增加利潤的同時增加收入，而且可以提高業務質量，同時降低風險。

Our approach is to establish strong relationships with our customers. Our customer profile typically falls within our six target vertical markets as a mix of old and new buildings and as a multi-location footprint. They consider their infrastructure to be critical to the operation of their business and will spend money to avoid downtime.

我們的方法是與客戶建立牢固的關係。我們的客戶概況通常屬於我們的六個目標垂直市場，即新舊建築的混合體以及多地點足跡。他們認為基礎設施對於業務運作至關重要，並且會花錢避免停機。

In several cases, these building owners have other buildings that overlap with our location. Our branch managers focus 80% of their time and energy on their top 5 to 10 key customers, which provides diversity to overall customer base by geography, as well as by market vertical. Additionally, each acquisition adds a new customer base with the same type of focus on their top customers, which promotes additional diversity.

在某些情況下，這些建築物業主擁有與我們所在位置重疊的其他建築物。我們的分行經理將 80% 的時間和精力集中在前 5 至 10 位關鍵客戶上，這為整個客戶群提供了按地理位置和垂直市場劃分的多樣性。此外，每次收購都會增加一個新的客戶群，並同樣關注其頂級客戶，從而促進額外的多樣性。

As our footprint grows through acquisition, the ability to capture market share should increase significantly. This approach allows us to capitalize on synergistic opportunities, while maintaining a level of diversity to our geographic footprint. As we expand our relationships with these top customers, our business grows, we've become a more integral part of their operations.

隨著我們透過收購擴大業務範圍，佔領市場份額的能力應該會顯著增強。這種方法使我們能夠利用協同機會，同時保持我們的地理足跡的多樣性。隨著我們擴大與這些頂級客戶的關係，我們的業務不斷成長，我們已成為他們營運中更不可或缺的一部分。

In 2024, we made a major investment in onsite account managers who are focused on learning customer facilities and capturing the operating spend needed in their facilities. Gaining the knowledge of our customers' facilities provides us a distinct advantage when the need arises to develop capital projects.

2024 年，我們對現場客戶經理進行了重大投資，他們專注於了解客戶設施並獲取其設施所需的營運支出。當需要開發資本項目時，了解客戶設施為我們提供了獨特的優勢。

Recently, one of our industrial clients needed to improve the environment of their production floor. Limbach presented a proposal that combined the utilization of our rental fleet with a custom design-build infrastructure project solution. Despite attempts from the owner to obtain competitive pricing, we presented a value-based solution that could not be compared and therefore commoditized.

最近，我們的一位工業客戶需要改善其生產車間的環境。Limbach 提出了一項提案，將我們租賃車隊的利用與客製化設計建造基礎設施專案解決方案相結合。儘管業主試圖獲得有競爭力的價格，但我們還是提出了一種基於價值的解決方案，無法進行比較，因此無法商品化。

The account manager relationship is key. We are successfully transitioning staff from the GCR side of the business to onsite account managers on the owner direct side. These team members manage the account relationships and are onsite every day. This embedded relationship helps us develop trust with the building owner, leading to increased market share by expanding our services from operating spend to capital projects.

客戶經理的關係是關鍵。我們正在成功地將員工從 GCR 方面的業務轉移到業主直接方面的現場客戶經理。這些團隊成員每天都在現場管理客戶關係。這種嵌入的關係有助於我們與業主建立信任，透過將我們的服務從營運支出擴展到資本項目來增加市場份額。

Our strategy wouldn't work, however, if we weren't providing value and high-quality work to our customers. The value and quality gives us the ability to expand our margins as we shift from GCR to ODR. We expect future margin expansion as we introduce new service offerings.

然而，如果我們不能為客戶提供價值和高品質的工作，我們的策略就不會奏效。當我們從 GCR 轉向 ODR 時，價值和品質使我們能夠擴大利潤。隨著我們推出新的服務產品，我們預計未來的利潤率將會擴大。

Jayme will get into specifics of our second quarter results, but our record second quarter total gross margin and improved free cash flow conversion are evidence that our strategy is working. The alignment and commitment to the company's strategy by our amazing employees makes our success possible. I'll now turn it over to Jayme to provide more detailed financial highlights before I return with additional commentary. Jayme?

Jayme 將詳細介紹我們第二季的業績，但我們創紀錄的第二季總毛利率和改善的自由現金流轉換證明我們的策略正在發揮作用。我們優秀的員工對公司策略的協調和承諾使我們的成功成為可能。現在，我將把它交給 Jayme，以提供更詳細的財務要點，然後再發表更多評論。杰梅？

Thanks, Mike. Our 2024 second quarter earnings press release and Form 10-Q, which provides comprehensive details of our financial results, were filed yesterday and can be found on our website. I will focus on the highlights from the second quarter.

謝謝，麥克。我們的 2024 年第二季度收益新聞稿和 10-Q 表格提供了我們財務業績的全面詳細信息，已於昨天提交並可在我們的網站上找到。我將重點介紹第二季的亮點。

During the quarter, we generated total revenue of $122.2 million versus $124.9 million in Q2 2023, and as we expected, total revenue declined by 2.1% due to our purposeful shift to our ODR business. ODR revenue grew 40.8% to $82.8 million, while GCR revenue declined 40.3% to $39.5 million.

本季度，我們的總收入為 1.222 億美元，而 2023 年第二季度為 1.249 億美元，正如我們預期的那樣，由於我們有目的地轉向 ODR 業務，總收入下降了 2.1%。ODR 營收成長 40.8% 至 8,280 萬美元，而 GCR 營收下降 40.3% 至 3,950 萬美元。

As Mike indicated, the decline in GCR revenue is intentional as we continue to execute our mix-shift strategy to ODR. In the second quarter, ODR revenue was 67.7% of total revenue, up from 47.1% last year. This increase from Q2 2023 is driving our gross profit and adjusted EBITDA results.

正如 Mike 所指出的，GCR 收入的下降是我們有意為之的，因為我們繼續執行向 ODR 的混合轉移策略。第二季度，ODR 營收佔總營收的 67.7%，高於去年的 47.1%。自 2023 年第二季以來的這一成長推動了我們的毛利和調整後 EBITDA 業績。

Our ODR backlog at quarter end was $177.7 million, compared to $147 million at December 31, 2023. GCR backlog was $151.6 million, compared to $186.9 million at December 31. The increase in ODR backlog and decrease in GCR backlog are due to our continued focus on accelerating the growth of our high margin ODR business.

截至季末，我們的 ODR 積壓金額為 1.777 億美元，而 2023 年 12 月 31 日為 1.47 億美元。GCR 積壓訂單為 1.516 億美元，截至 12 月 31 日為 1.869 億美元。ODR 積壓的增加和 GCR 積壓的減少是由於我們持續專注於加速高利潤 ODR 業務的成長。

It's important to keep in mind, however, that backlog in the ODR segment does not reflect our full book of business, as many ODR projects are short-term in nature and get sold and completed before becoming part of the backlog at the end of the quarter.

It's important to keep in mind, however, that backlog in the ODR segment does not reflect our full book of business, as many ODR projects are short-term in nature and get sold and completed before becoming part of the backlog at the end of the四分之一.

Total gross profit increased 17.5% to $33.5 million for the quarter, from $28.5 million in Q2 2023, reflecting our mix-shift strategy to ODR. ODR gross profit comprised 75.7% of total gross profit dollars or $25.4 million. ODR gross profit increased $8.1 million or 47.1%, driven by higher revenue, with expanded gross margin in Q2 to 30.6% versus 29.3% in Q2 of 2023.

本季總毛利從 2023 年第二季的 2,850 萬美元成長了 17.5%，達到 3,350 萬美元，反映了我們向 ODR 的混合轉型策略。ODR 毛利佔總毛利的 75.7%，即 2,540 萬美元。在營收增加的推動下，ODR 毛利增加了 810 萬美元，即 47.1%，第二季毛利率擴大至 30.6%，而 2023 年第二季為 29.3%。

GCR gross profit decreased $3.1 million or 27.7%, due to lower revenue with our focus on smaller and higher quality projects with better margins. This enabled GCR's gross margin to expand to 20.6% from 17.1% in Q2 2023. As a result, total gross margin for the second quarter was a record 27.4%, as Mike mentioned, up from 22.8% in the prior year.

GCR 毛利下降了 310 萬美元，即 27.7%，原因是我們專注於規模較小、品質更高、利潤率更高的項目，收入下降。這使得 GCR 的毛利率從 2023 年第二季的 17.1% 擴大至 20.6%。因此，正如麥克所提到的，第二季的總毛利率達到創紀錄的 27.4%，高於去年同期的 22.8%。

During the quarter, SG&A expense increased approximately $2.8 million to $23.2 million, from $20.4 million in Q2 2023. As a percentage of revenue, SG&A expense was 19%, up from 16.3% in 2023. Approximately $1.5 million of the $2.8 million increase was primarily due to our two recent acquisitions that were not part of our company in Q2 2023.

本季度，SG&A 費用從 2023 年第二季的 2,040 萬美元增加約 280 萬美元至 2,320 萬美元。SG&A 費用佔收入的百分比為 19%，高於 2023 年的 16.3%。280 萬美元的成長中約 150 萬美元主要是因為我們最近在 2023 年第二季進行的兩項收購不屬於我們公司的一部分。

The remainder of the increase was driven by payroll, stock-based compensation, and travel and entertainment expenses. For 2024, we are still targeting SG&A expense as a percentage of total revenue of around 18% to 19%, as we continue to invest in our ODR business to drive growth.

其餘的成長則是由薪資、股票薪資以及差旅和娛樂費用所推動。到 2024 年，我們的目標仍然是 SG&A 費用佔總收入的 18% 至 19% 左右，同時我們繼續投資 ODR 業務以推動成長。

Adjusted EBITDA for the second quarter was $13.8 million, up 16% from $11.9 million in Q2 2023. Adjusted EBITDA margin for the second quarter was 11.3%, up 180 basis points from 9.5% in Q2 2023.

第二季調整後 EBITDA 為 1,380 萬美元，比 2023 年第二季的 1,190 萬美元成長 16%。第二季調整後 EBITDA 利潤率為 11.3%，較 2023 年第二季的 9.5% 上升 180 個基點。

Net income for the second quarter was $6 million or $0.50 per diluted share, compared to $5.3 million or $0.46 per diluted share in 2023. This represents 12.1% growth in net income, compared to the second quarter of 2023.

第二季淨利為 600 萬美元，即稀釋後每股收益 0.50 美元，而 2023 年淨利為 530 萬美元，即稀釋後每股收益 0.46 美元。與 2023 年第二季相比，淨利潤成長 12.1%。

Turning to cash flow, we had $16.5 million of cash flow from operating activities during the second quarter, compared to $16.9 million in 2023. This difference was primarily driven by the timing of accounts receivable, buildings and collections.

談到現金流，第二季我們的營運活動現金流為 1,650 萬美元，而 2023 年為 1,690 萬美元。這種差異主要是由應收帳款、建築物和收款的時間安排所造成的。

Cash flow from investing activities reflects $1.5 million allocated to the purchase of rental equipment during the quarter, which we mentioned earlier and during the first quarter earnings call.

投資活動產生的現金流量反映了本季分配給購買租賃設備的 150 萬美元，我們之前和第一季財報電話會議期間提到過這一點。

Free cash flow for the quarter was $10.9 million, compared to $8.8 million in Q2 2023, an increase of 23.8%, which we define as cash flow from operations minus changes in working capital and capital expenditures. This excludes our investment in rental equipment, which was approximately $1.5 million in Q2.

本季自由現金流為 1,090 萬美元，較 2023 年第二季的 880 萬美元成長 23.8%，我們將其定義為營運現金流減去營運資本和資本支出的變動。這還不包括我們對租賃設備的投資，第二季約為 150 萬美元。

The free cash flow conversion of adjusted EBITDA for the second quarter was 78.7% versus 73.7% in the second quarter last year. For 2024, we continue to target a free cash flow conversion rate of approximately 70%, excluding our investment in rental equipment, which is approximately $4 million.

第二季調整後 EBITDA 的自由現金流轉換率為 78.7%，去年第二季為 73.7%。到 2024 年，我們繼續目標是實現約 70% 的自由現金流轉換率，不包括約 400 萬美元的租賃設備投資。

We continue to expect capital expenditures for 2024, excluding the investment in the rental equipment, to be approximately $3 million, due to the acceleration of our ODR strategy.

由於 ODR 策略的加速，我們仍預期 2024 年的資本支出（不包括租賃設備的投資）約為 300 萬美元。

Turning to our balance sheets, at the end of Q2, we had $59.5 million in cash and cash equivalents and $10 million on our $50 million revolving credit facility at a weighted average interest rate of 5.72%. For the quarter, interest income exceeded interest expense.

轉向我們的資產負債表，截至第二季末，我們擁有 5,950 萬美元的現金和現金等價物，以及 1,000 萬美元的 5,000 萬美元循環信貸額度，加權平均利率為 5.72%。本季利息收入超過利息支出。

Our balance sheet remains strong and we are well-positioned to make necessary investments to drive our continued ODR expansion and to make strategic acquisitions. Now I'll turn the call back to Mike for closing remarks.

我們的資產負債表依然強勁，我們有能力進行必要的投資，以推動我們持續的 ODR 擴張並進行策略性收購。現在我將把電話轉回給麥克，讓他致結束語。

Thank you, Jayme. We believe Limbach is well-positioned for sustained profitability, continued growth, and stability through economic cycles. But I think the genuinely exciting part of our story is there's still much more to be achieved in our business transformation. There is more to come as we move towards the optimal business mix between ODR and GCR, add additional service offerings, and grow through acquisitions. The potential I see is extremely encouraging.

謝謝你，杰梅。我們相信林巴赫處於有利地位，可以在整個經濟週期中實現持續獲利、持續成長和穩定。但我認為我們故事中真正令人興奮的部分是我們的業務轉型還有很多工作要做。隨著我們朝著 ODR 和 GCR 之間的最佳業務組合邁進，增加額外的服務產品並透過收購實現成長，還會有更多的事情發生。我看到的潛力非常令人鼓舞。

As we continue to pick up the pace on transition to business, we're increasing our total revenue and adjusted EBITDA guidance ranges for the full year 2024. Adjusted EBITDA for the full year is now expected to be in the range of $55 million to $58 million, which is up from our previous guidance of $51 million to $55 million that we presented in Q1.

隨著我們繼續加快向業務轉型的步伐，我們正在增加 2024 年全年的總收入和調整後的 EBITDA 指導範圍。目前，全年調整後 EBITDA 預計在 5,500 萬美元至 5,800 萬美元之間，高於我們先前在第一季提出的 5,100 萬美元至 5,500 萬美元的指導值。

And our expected full year total revenue guidance range is now $515 million to $535 million, up from $510 million to $530 million, which is our previous range. We're maintaining our annual goal of 65% to 70% ODR revenue as a percentage of total revenue. That concludes our prepared remarks. I'll now ask the operator to begin the Q&A.

我們預期的全年總收入指引範圍現在為 5.15 億美元至 5.35 億美元，高於我們先前的範圍 5.1 億美元至 5.3 億美元。我們維持 ODR 收入佔總收入百分比 65% 至 70% 的年度目標。我們準備好的演講到此結束。我現在請接線生開始問答。

(Operator Instructions) Rob Brown, Lake Street Capital.

（操作員說明）Rob Brown，Lake Street Capital。

Good morning and congratulations on a good quarter. First question is on sort of the strength areas you're seeing in terms of verticals that you're in. I know there's the shift going on, but where are you seeing kind of market strength and demand as you plot your strategies?

早上好，恭喜季度業績良好。第一個問題是關於您所看到的垂直領域的優勢領域。我知道這種轉變正在發生，但是當您制定策略時，您在哪裡看到了市場實力和需求？

Sure, Rob. When I think about our verticals, I always think about the nature of the customers, and they're mission critical. They can't afford downtime. And I think that's really helped us. So just to kind of go through them at a high level, healthcare, just to remind, every one of our locations, that's a vertical market that they're super focused on.

當然，羅布。當我考慮我們的垂直行業時，我總是會考慮客戶的性質，他們的任務至關重要。他們無法承受停機時間。我認為這確實對我們有幫助。因此，只是為了在高水平上回顧它們，醫療保健，只是提醒一下，我們的每一個地點，這是他們非常關注的垂直市場。

So we like the ability to be relatively stable. The other thing I think we're seeing within healthcare is tremendous, deferred maintenance. That deferred maintenance has probably gone on for three years or four years.

所以我們喜歡相對穩定的能力。我認為我們在醫療保健領域看到的另一件事是巨大的延遲維護。這種延期維護可能已經持續了三年或四年。

We're talking to a lot of our customers about the fact that they need to continue to reinvest in their buildings, so that's going to produce future capital projects. And I think our ability to deploy onsite account managers is going to allow us to really get to know their building and be well-positioned from a capital project in the next couple years.

我們正在與許多客戶討論這樣一個事實：他們需要繼續對自己的建築進行再投資，這樣才能產生未來的資本項目。我認為我們部署現場客戶經理的能力將使我們能夠真正了解他們的建築，並在未來幾年的資本項目中處於有利地位。

Industrial manufacturing continues to be strong in the middle of the country for us. Continuing reinvestment in facilities, upgrades, different lines that are being added, so that continues to be strong. Data centers, as I mentioned earlier, not necessarily in every one of our locations, but there's some strength that we're seeing from existing infrastructure upgrades from that standpoint.

對我們來說，中部地區的工業製造業持續強勁。繼續對設施、升級和增加的不同線路進行再投資，從而繼續保持強勁。正如我之前提到的，資料中心不一定在我們的每一個地點，但從這個角度來看，我們從現有基礎設施升級中看到了一些優勢。

And lastly, I would say in the higher ed, life science type market, the customers that we have that have those mission critical labs that can't afford downtime, they continue to be good, durable spenders. So in conclusion, the vertical is definitely having that mission critical, can't afford downtime, again, I think really helps us and should help us in the future.

最後，我想說，在高等教育、生命科學類型的市場中，我們擁有那些無法承受停機時間的關鍵任務實驗室的客戶，他們仍然是優秀、耐用的消費者。因此總而言之，垂直領域肯定具有關鍵任務，無法承受停機時間，我認為這確實對我們有幫助，並且應該在未來為我們提供幫助。

Okay. Thank you. And then in terms of your kind of EBITDA margin expansion has been very strong, what's sort of the goal that you think this can get to in terms of EBITDA margin as this mix-shift fully takes hold?

好的。謝謝。然後，就您的 EBITDA 利潤率擴張而言，您認為隨著這種混合轉變的全面實施，您認為 EBITDA 利潤率可以達到什麼樣的目標？

Rob, when you think about our strategy, And I mentioned this obviously before too, you think about in terms of our three different pillars. The first pillar is obviously shifting from primarily GCR to primary owner direct and we're well on the way for that. And that's going to be able to obviously produce some lift and that's what's really helped us the last couple of years.

羅布，當你考慮我們的策略時，我之前也明確提到這一點，你會考慮我們的三個不同的支柱。第一個支柱顯然正在從主要的 GCR 轉向主要所有者直接，我們正在朝著這個方向前進。顯然，這將能夠產生一些提升，這就是過去幾年真正幫助我們的原因。

The second leg of the stool is really our ability to evolve offering to produce a lot higher margin. So that's going to produce another ability from a gain from that perspective.

凳子的第二條腿實際上是我們發展產品以產生更高利潤的能力。因此，從這個角度來看，這將從增益中產生另一種能力。

And then you think about the third piece of it from an acquisition perspective, that's going to help us enhance offerings that we're looking to introduce, as well as scale, footprint, and eventually leverage over a period of time.

然後你從收購的角度考慮第三部分，這將幫助我們增強我們想要推出的產品，以及規模、足跡，並最終在一段時間內提高槓桿率。

So we think there's lots of room to go and I think about where we're at even from our first pillar. Getting through that first pillar, we're all on our way from that, but I think there's a lot more to come down the line as well too.

因此，我們認為還有很大的發展空間，我甚至從我們的第一個支柱開始思考我們所處的位置。完成第一個支柱後，我們都在朝著這個目標邁進，但我認為還有很多事情要做。

Okay. Thank you. And then last question is really on the rental fleet. That's expanded nicely. How much sort of investment do you foresee doing there and what can that business become?

好的。謝謝。最後一個問題實際上是關於租賃車隊的。這擴展得很好。您預計在那裡進行多少類型的投資以及該業務會發展成什麼樣子？

Yeah. So, I think, we've seen -- there's a couple things with the rental. Obviously, we invested this year $4 million in rental equipment and it's really nice to see this summer that this equipment is really starting to move.

是的。所以，我認為，我們已經看到了——租金有一些問題。顯然，我們今年投資了 400 萬美元用於租賃設備，很高興看到今年夏天這些設備真正開始移動。

One thing I think from, so I think, obviously, it's working. Then we're going to be thinking about, obviously, we're going to take a hard look and think about that going forward as well too. That would be a good business decision. But one thing I wanted to point out in one of the examples that we gave, when I think about rentals and we think about rentals, it's just another piece that we can bundle into an overall solution.

我想到一件事，所以我認為，顯然，它正在發揮作用。然後我們顯然會認真審視並思考未來的發展。這將是一個很好的商業決策。但我想在我們給出的一個例子中指出一件事，當我考慮租賃時，我們考慮租賃時，它只是我們可以捆綁到整體解決方案中的另一部分。

We have an industrial client that they were looking for upgrades, and sometimes the clients will take some time to make decisions. Meanwhile, they have a need their facilities down. That's where the rental fleet comes in perfectly. We can really provide that end-to-end solution.

我們有一個工業客戶，他們正在尋求升級，有時客戶需要一些時間來做決定。同時，他們需要關閉他們的設施。這就是租賃車隊的完美用武之地。我們確實可以提供端到端的解決方案。

Here's the rental equipment and cooling equipment you need to keep going. That allows you and gives you a little bit of time to make a decision and it just makes a lot of sense, while we're providing the rental equipment for us to get the infrastructure upgrade as well too.

這是您繼續運作所需的租賃設備和冷卻設備。這讓您有一點時間做出決定，這很有意義，同時我們也為我們提供租賃設備以進行基礎設施升級。

So we're going to wait and see how it goes this summer, but we're really very excited about our deployment so far. And again, building these rental fleet into an overall bundled solution is obviously something that we're looking forward to in the future.

因此，我們將拭​​目以待今年夏天的進展情況，但我們對迄今為止的部署感到非常興奮。再次強調，將這些租賃車隊建構成整體捆綁解決方案顯然是我們未來所期待的。

(Operator Instructions) At this time, I see no further questions. I'd like to turn it back to Mike for any closing remarks.

（操作員說明） 目前，我沒有看到任何其他問題。我想將其轉回給麥克以供結束語。

Thank you, everybody, for joining the call today and your interest in Limbach. If you have any additional questions, please reach out to Julie Kegley at Financial Profiles. Thank you, everyone. Have a great day.

感謝大家今天加入電話會議以及對林巴赫的興趣。如果您有任何其他問題，請聯絡財務概況的 Julie Kegley。謝謝大家。祝你有美好的一天。

Thank you. This does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

謝謝。今天的會議到此結束。我們感謝您的參與。此時您可以斷開線路並度過美好的一天。