Limbach Holdings Inc (LMB) 2024 Q3 法說會逐字稿

Good morning and welcome to the third quarter 2024 Limbach Holdings earnings conference call and webcast.

早上好，歡迎來到 Limbach Holdings 2024 年第三季財報電話會議和網路廣播。

(Operator Instructions)

（操作員說明）

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

我現在將會議轉交給主持人、《財務概況》雜誌的朱莉·凱格利 (Julie Kegley)。你現在可以開始了。

Good morning and thank you for joining us today to discuss Limbach Holdings financial results for the third quarter 2024. Yesterday, Limbach issued its earnings release and filed its form 10-Q for the period ended, September 30, 2024. 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.

早安，感謝您今天加入我們討論 Limbach Holdings 2024 年第三季的財務業績。昨天，Limbach 發布了收益報告，並提交了截至 2024 年 9 月 30 日的期間的 10-Q 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。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 the call to questions. 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.

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，然後開始提問。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 financial performance are also forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements. 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.

非歷史事實的陳述，例如有關預期財務表現的陳述，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。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 的 SEC 文件中，包括 10-K 和 10-Q 表格的報告。

Please note that on today's call, we will be referring to non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our third 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 President and CEO Mike McCann.

請注意，在今天的電話會議上，我們將提及非公認會計原則措施。您可以在我們的第三季收益發布和投資者簡報中找到這些非GAAP 衡量標準與最直接可比較的GAAP 衡量標準的對賬，這兩者都可以在Limbach 投資者關係網站上找到，並以表格8- 提供。現在，我將把電話轉給總裁兼執行長 Mike McCann。

Good morning and welcome to our Stockholders, Analysts and Interested Investors. We appreciate you joining us today. Execution has been the key to our success. This was evident in our third quarter results with each part of our three pillar strategy contributing to our strong financial performance for Q3, our strategy of shifting revenue to owner direct relationships or ODR evolving our offerings and scaling the business through acquisitions had led to even to growth and margin expansion.

早安，歡迎我們的股東、分析師和有興趣的投資者。我們感謝您今天加入我們。執行力是我們成功的關鍵。這在我們第三季的業績中顯而易見，我們的三大支柱策略的每個部分都為我們第三季的強勁財務業績做出了貢獻，我們將收入轉移到所有者直接關係或ODR 的策略，不斷發展我們的產品並透過收購擴大業務，甚至導致了成長和利潤率擴張。

We're proud of what we have achieved. We continue to have opportunity to grow organically to add high margin offerings and to make acquisitions that expand our footprint, while expanding and deepening our customer relationships.

我們為我們所取得的成就感到自豪。我們繼續有機會進行有機成長，以增加高利潤產品並進行收購以擴大我們的足跡，同時擴大和深化我們的客戶關係。

The first pillar of our strategy are shift to ODR here to date, 67% of our revenue and 77% of our gross profit is from ODR. We continue to be on target to reach 65% to 70% of revenue from ODR for fiscal year 2024. Our second pillar is focused on evolved offerings and margin expansion which positively impacts not only our organic growth but also the profitability of those companies that we acquire. Our three years strategy to evolve our offerings is well underway.

到目前為止，我們策略的第一個支柱是轉向 ODR，我們 67% 的收入和 77% 的毛利來自 ODR。我們的目標仍是在 2024 財年達到 ODR 收入的 65% 至 70%。我們的第二個支柱專注於不斷發展的產品和利潤擴張，這不僅對我們的有機成長產生積極影響，而且對我們收購的公司的獲利能力產生積極影響。我們的三年策略發展我們的產品正在順利進行中。

Our focus for 2024 has been on offerings that complement the operational budgets of the building owners which includes on demand services, critical system repairs, data driven solutions and general maintenance and operations. To do this, we've invested in Account Managers who gain a deep knowledge of our customers' facilities so that we may immediately react to our customers' needs, being on site and gaining the understanding of these facilities then gives us the opportunity to work with our customers proactively develop their long term capital plans.

我們 2024 年的重點是提供補充業主營運預算的產品，其中包括按需服務、關鍵系統維修、數據驅動解決方案以及一般維護和營運。為此，我們投資了客戶經理，他們對客戶的設施有深入的了解，以便我們可以立即對客戶的需求做出反應，在現場並了解這些設施，然後讓我們有機會工作與我們的客戶一起積極制定長期資本計畫。

Assisting our customers with their long term capital planning is our focus Going to 2025. We will strive to create additional value by providing MEP capital project solutions along with equipment upgrades and professional consultant services. Another offering investment we made during the first half of the year was $4 million in rental equipment for indoor climate control. More specifically air cooled chiller and air handling units to support our customers' needs. We see an opportunity to grow this offering due to the demand for large temporary use, air chillers and to meet this demand. Over the next 12 months, we are planning to invest an additional $4 million to purchase more equipment and add personnel. This is a scalable offering with high returns on invested capital.

到 2025 年，我們的重點是協助客戶進行長期資本規劃。我們將努力透過提供機電資本項目解決方案以及設備升級和專業諮詢服務來創造附加價值。我們上半年進行的另一項投資是用於室內氣候控制的租賃設備 400 萬美元。更具體地說，風冷式冷水機組和空氣處理機組可滿足客戶的需求。由於對大型臨時用途、空氣冷卻器的需求並滿足這一需求，我們看到了增加此產品的機會。在接下來的 12 個月裡，我們計劃額外投資 400 萬美元來購買更多設備並增加人員。這是一個可擴展的產品，具有高投資資本回報率。

Our third pillar is scaling through acquisitions. We're creating value through acquisitions by acquiring businesses for single digit even multiples. Even before taking into account, the synergies we expect to achieve through both sales mix shift and scale, with four acquisitions completed we expect to get a more even deal flow and also be opportunistic when looking at potential transactions that could expand our offerings or include larger businesses in general.

我們的第三個支柱是透過收購擴大規模。我們透過以個位數甚至倍數收購企業來創造價值。即使在考慮之前，我們期望透過銷售組合轉變和規模實現協同效應，隨著四次收購的完成，我們期望獲得更均勻的交易流，並且在考慮可以擴大我們的產品或包括更大的潛在交易時也能抓住機會一般企業。

While our pipeline for acquisitions activity is robust, we are disciplined in our rigorous diligence process and our careful analysis of cultural compatibility between our organization and the target companies, we want the right fit at the right price. Our acquisition in early September of Kent Island Mechanical is a great example of how a tuck in acquisition complements our organic growth and creates value for our stockholders. As soon as we close the deal, we begin integrating Kent Island into our local operation and the limbo platform.

雖然我們的收購活動管道很強大，但我們嚴格遵守嚴格的盡職調查流程，並仔細分析我們的組織與目標公司之間的文化相容性，因此我們希望以合適的價格找到合適的人選。我們在九月初對 Kent Island Mechanical 的收購是一個很好的例子，說明收購如何補充我們的有機成長並為我們的股東創造價值。一旦我們完成交易，我們就開始將肯特島整合到我們的當地業務和 Limbo 平台中。

Within weeks of the announcement, our Local Leaders from both companies have met with all our key customers in the Washington DC metro area. By combining the capabilities of Kent Island and the local limb office we strengthen our relationship with all of our key owner accounts in that market. For example, one key account is a joint health care customer. Kent Island's relationship was with the hospital staff who procured the larger capital project. While our branch relationship rested with the facility director, we were proactive in getting in front of that customer and positioning limbo as their total solutions provider.

在宣布這一消息後的幾週內，兩家公司的當地領導人都會見了華盛頓特區都會區的所有主要客戶。透過結合肯特島和當地肢體辦公室的能力，我們加強了與該市場所有主要所有者客戶的關係。例如，一個關鍵客戶是聯合醫療保健客戶。肯特島與採購較大資本項目的醫院工作人員有關係。雖然我們的分公司關係取決於設施總監，但我們積極主動地站在該客戶面前，並將 Limbo 定位為他們的整體解決方案提供者。

And as a result, we were able to pick up market share, we believe this process is repeatable in many of the markets we serve including contingent earnouts, we paid approximately 5 times the 2025 Projecting EBITDA for the Kent Island Business. Post deal close, we believe we have created a value creation process that we've been perfecting over the past several transactions. Our long term objective is to buy companies that are very creative valuation and over a three year period increase the profitability of that asset.

因此，我們能夠獲得市場份額，我們相信這一過程在我們服務的許多市場中都是可重複的，包括或有收益，我們為肯特島業務支付的費用約為 2025 年預計 EBITDA 的 5 倍。交易完成後，我們相信我們已經創建了一個價值創造流程，並且在過去的幾筆交易中我們一直在完善這個流程。我們的長期目標是購買估值非常有創意的公司，並在三年內提高該資產的獲利能力。

Our value creation process is built around creating a common operating and strategic platform across all our locations. After a three year period post acquisition, we want the acquired entity to be performing and operating similar to our organic location.

我們的價值創造流程是圍繞著在我們所有地點創建一個共同的營運和策略平台而建立的。收購後三年後，我們希望被收購實體的表現和營運與我們的有機地點類似。

Initially, we apply lessons learned from a risk management perspective and benchmark their gross profit against what we see with our other business locations. Our model is built around each location, focusing on their local niche and passing on work that is outside of their vertical markets. Our go to market strategy is built around expanding relationship with customers and industries that have mission critical infrastructure that cannot fail.

最初，我們從風險管理的角度吸取經驗教訓，並將其毛利與我們在其他業務地點看到的毛利進行比較。我們的模型是圍繞每個地點構建的，專注於當地的利基市場並傳遞垂直市場以外的工作。我們的市場策略是圍繞著擴大與擁有不會失敗的關鍵任務基礎設施的客戶和行業的關係而建立的。

Many businesses we look at have a divisional model with several P&L departments that act independently. In deals that we've completed we quickly realize the best way to unlock value with these new organizations is to remote or hire a Sales Manager who coordinates the sales effort to bring the divisions back together. This role determines and researches what accounts we deploy our onsite Account Managers. These Account Managers are assigned to the top five accounts of newly acquired company and gain detailed knowledge of facilities becoming the go to problem solvers for building owners.

我們研究的許多企業都採用部門模式，其中有多個獨立運作的損益部門。在我們已經完成的交易中，我們很快意識到，與這些新組織一起釋放價值的最佳方式是遠距辦公或聘請銷售經理來協調銷售工作，使各個部門重新整合在一起。該角色確定並研究我們部署現場客戶經理的客戶。這些客戶經理被分配到新收購公司的前五個客戶，並獲得有關設施的詳細知識，成為業主的首選問題解決者。

We have seen that over time as we continue to dedicate these resources, our customers will give us additional revenue opportunities. This is our goal to provide bundled solutions that combine our capabilities. One example of this is a health care customer in the Boston area. Over the past two years, we have expanded our relationship by performing various maintenance type and project services.

我們發現，隨著時間的推移，隨著我們繼續投入這些資源，我們的客戶將為我們帶來額外的收入機會。我們的目標是提供結合我們能力的捆綁解決方案。波士頓地區的一位醫療保健客戶就是一個例子。在過去的兩年中，我們透過提供各種維護類型和專案服務擴大了我們的關係。

We recently signed a bundle service contract that goes well beyond traditional maintenance to include engineering services for capital planning maintenance, for several systems, staff augmentation and proactive analysis. Over the next 12 months, we anticipate creating more bundle offerings like this with additional customers.

我們最近簽署了一份捆綁服務合同，該合約遠遠超出了傳統維護的範圍，包括資本規劃維護、多個系統、人員擴充和主動分析的工程服務。在接下來的 12 個月中，我們預計將與更多客戶一起創建更多此類捆綁產品。

We believe our customer relationships can expand to a broader scale. We believe we can transition our local relationships into national customers and we're starting to see some traction on this initiative. Two customers have asked us to expand our reach one in the data center vertical and the other in health care. Our local presence combined with a common strategic platform will enable us to support these customers in multiple locations. Our suite of professional services coupled with our acquisition program allows us over time to become an enterprise solutions provider for these national customers.

我們相信我們的客戶關係可以擴展到更廣泛的範圍。我們相信我們可以將我們的本地關係轉變為全國客戶，我們開始看到這項措施產生了一些吸引力。兩位客戶要求我們擴大我們的業務範圍，一個是在資料中心垂直領域，另一個是在醫療保健領域。我們的本地業務與共同的策略平台相結合將使我們能夠在多個地點為這些客戶提供支援。我們的專業服務套件與我們的收購計劃相結合，使我們能夠隨著時間的推移成為這些國家客戶的企業解決方案提供者。

Turning to our outlook, based on our strong performance for the first 9 months of the year, we now expect total revenue to be in the range of 520 million to 540 million. This compares to our previous guidance of 515 to 535 million. Adjusted even is now expected to be in a range of 60 million to 63 million. Up from 55 million to 58 million. We expect full year gross margin to be 26% to 27% compared to previous estimates of 24% to 26%.

談到我們的展望，基於今年前 9 個月的強勁表現，我們現在預計總收入將在 5.2 億至 5.4 億之間。相比之下，我們先前的指導值為 515 至 5.35 億。調整後目前預計將在6000萬至6300萬之間。從 5500 萬增加到 5800 萬。我們預計全年毛利率為 26% 至 27%，而先前的預測為 24% 至 26%。

Jayme and I have had many Investors ask us this year, what our growth rate looks like going forward. We haven't provided long term guidance because we we've been in a state of transition as we've moved away from general contract relationships or GCR business toward owner direct business. In 2024, we've made tremendous progress in the mix shift.

今年，Jayme 和我有很多投資人問我們，我們未來的成長率是多少。我們沒有提供長期指導，因為我們一直處於過渡狀態，從一般合約關係或 GCR 業務轉向業主直接業務。2024 年，我們在混合轉型方面取得了巨大進展。

We've also transformed how we go to market through Account Manager based sales and customer engagement focused on the top customers in each market. We would like to establish a track record with this new model before we give more specific guidance on anticipated future growth rates. What I can tell you is that we believe over time we can expand overall gross margins similar to other building systems solutions firms at the same time growing consolidated revenue. The consolidated revenue growth is a combination of organic growth and acquisitions and we expect to see top line revenue growth starting in 2025.

我們也透過基於客戶經理的銷售和客戶參與，重點關注每個市場的頂級客戶，改變了我們進入市場的方式。在我們對預期的未來成長率提供更具體的指導之前，我們希望透過這種新模型建立追蹤記錄。我可以告訴您的是，我們相信隨著時間的推移，我們可以像其他建築系統解決方案公司一樣擴大整體毛利率，同時增加綜合收入。合併收入成長是有機成長和收購的結合，我們預計收入將從 2025 年開始成長。

I'd like now to turn the call over to Jayme for our Financial report.

我現在想將電話轉給 Jayme，以獲取我們的財務報告。

Thanks Mike. Our third quarter 2024 earnings press release and form 10-Q which provide comprehensive details of our financial results were filed yesterday and can be found on our website. I will focus on the highlights from the third quarter. All comparisons are third quarter 2024 versus third quarter 2023 unless otherwise noted. During the quarter, we delivered total revenue of 133.9 million representing 4.8% growth from 127.8 million. ODR revenue grew 41.3% to 93 million while GCR revenue declined 33.9% to 40.9 million.

謝謝邁克。我們於昨天提交了 2024 年第三季度收益新聞稿和 10-Q 表格，其中提供了我們財務業績的全面詳細信息，可以在我們的網站上找到。我將重點介紹第三季的亮點。除非另有說明，所有比較均針對 2024 年第三季與 2023 年第三季。本季度，我們的總營收為 1.339 億美元，較 1.278 億美元成長 4.8%。ODR 營收成長 41.3% 至 9,300 萬，而 GCR 營收下降 33.9% 至 4,090 萬。

The decline in GCR revenue reflects our intentional selection of higher quality shorter duration projects. ODR revenue was 69.4% of total revenue up from 51.5% while GCR revenue was 30.6% down from 48.5%. As Mike stated, we are executing our makeshift strategy and on track with a target of 65% to 70% of revenue coming from our ODR for 2024.

GCR收入的下降反映出我們有意選擇品質較高、工期較短的項目。ODR 收入佔總收入的比例從 51.5% 上升到 69.4%，而 GCR 收入則從 48.5% 下降到 30.6%。正如 Mike 所說，我們正在執行臨時策略，並有望實現 2024 年 65% 至 70% 的收入來自 ODR 的目標。

The increase in ODR revenue is driving our gross profit and adjusted EBITDA results. Our ODR backlog at quarter end was 209.8 million compared to 147 million at December 31, 2023. DCR backlog was 161.5 million compared to 186.9 million at December 31, 2023. The increase in ODR backlog and the decrease in the GCR backlog are due to our continued focus on accelerating the growth of our higher margin ODR business.

ODR 收入的增加正在推動我們的毛利和調整後 EBITDA 表現。截至季末，我們的 ODR 積壓量為 2.098 億，而 2023 年 12 月 31 日為 1.47 億。DCR 積壓量為 1.615 億，而 2023 年 12 月 31 日為 1.869 億。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利潤率較高的 ODR 業務的成長。

Keep in mind that the backlog in the ODR segment does not reflect our complete book of business. Many ODR projects are short term in nature and can be sold and executed before becoming part of the backlog at the end of the quarter. Total gross profit increased 15.6% to 36.1 million from 31.2 million reflecting our emphasis on ODR. ODR gross profit comprised 82.1% of the total gross profit dollars or 29.6 million. ODR gross profit increased 10.4 million or 53.8% driven by higher revenue and expanded gross margins of 31.9% versus 29.3%.

請記住，ODR 部門的積壓訂單並不反映我們完整的業務。許多 ODR 項目本質上都是短期的，可以在季度末成為積壓訂單的一部分之前出售和執行。總毛利從 3,120 萬美元成長 15.6% 至 3,610 萬美元，反映出我們對 ​​ODR 的重視。ODR 毛利佔總毛利的 82.1%，即 2,960 萬美元。由於收入增加，ODR 毛利增加 1,040 萬美元，即 53.8%，毛利率也從 29.3% 擴大到 31.9%。

GCR group post profit decreased 5.5 million or 46% as a result of lower margins and are focused on mix shift and selectivity on GCR projects total gross margin increased to 27% up from 24.5% mainly driven by the mix of higher margin ODR revenue. Continuing to be more selective when pursuing GCR work and the impact of acquisitions. SG&A expense increased approximately 2.8 million to 23.7 million from 21 million as a percentage of revenue SG&A expense was 17.7% up from 16.4%. The increase in SG&A expense was primarily driven by a million dollar increase in SG&A expenses from industrial air as they were not part of the company during the prior year quarter. A $1.1 million increase in payroll related expenses, $0.5 million increase in stock based compensation expense and 8.4 million increase in professional services fees. For 2024, we are still targeting SG&A expense as a percentage of total revenue to be around 18% to 19% as we continue to invest in the ODR business to drive growth.

由於利潤率下降，GCR 集團淨利潤下降550 萬美元或46%，並專注於GCR 項目的組合轉變和選擇性，總毛利率從24.5% 增至27%，這主要是由於利潤率較高的ODR收入組合所致。在進行 GCR 工作和收購影響時繼續更加挑剔。SG&A 費用從 2,100 萬增加到 2,370 萬，佔收入的百分比從 16.4% 增加到 17.7%。SG&A 費用的增加主要是由於工業空氣的 SG&A 費用增加了 100 萬美元，因為工業空氣在上一季不屬於公司的一部分。薪資相關費用增加 110 萬美元，股票補償費用增加 50 萬美元，專業服務費用增加 840 萬美元。到 2024 年，我們仍將 SG&A 費用佔總營收的比例目標定為 18% 至 19% 左右，因為我們將繼續投資 ODR 業務以推動成長。

Net income was 7.5 million an increase of 4.1% from 7.2 million in 2023. Diluted earnings per share was 62¢ compared to 61¢ in the same quarter last year. Adjusted EBITDA for the third quarter was 17.3 million up 27.2% from 13.6 million and adjusted EBITDA margin was 12.9% up 227 basis points from 10.7%.

淨利潤為 750 萬美元，比 2023 年的 720 萬美元成長 4.1%。稀釋後每股收益為 62 美分，而去年同期為 61 美分。第三季調整後 EBITDA 為 1,730 萬美元，較 1,360 萬美元成長 27.2%，調整後 EBITDA 利潤率為 12.9%，較 10.7% 成長 227 個基點。

Turning to cash flow, we had 4.9 million of cash flow from operating activities compared to 17.2 million. This difference primarily was driven by the timing of changes in working capital. Cash flow from investing activities reflects the 12.7 million net purchase of Kent Island in capital expenditures of about $351,000. Free cash flow for the quarter was 13 million compared to 11.2 million. An increase of 16.6% which we define as cash flow from operations minus changes in working capital and capital expenditures excluding our investment in rental equipment, which was minimal In Q3.

說到現金流，我們的經營活動現金流為 490 萬，而同期為 1,720 萬。這種差異主要是由營運資金變動的時間所造成的。投資活動產生的現金流反映了淨購買肯特島1270萬美元的資本支出約為351,000美元。本季自由現金流為 1,300 萬美元，去年同期為 1,120 萬美元。成長 16.6%，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化，不包括我們對租賃設備的投資，這在第三季是最低的。

The free cash flow conversion of adjusted EBITDA was 75.3% in the third quarter versus 82.1% in the third quarter Last year. For 2024, we continue to target a free cash flow conversion rate of approximately 70%, excluding our investment in rental equipment. We invested 4 million earlier this year in rental equipment and planned to invest an additional 1 million by the end of this year. With the additional investment in rental equipment this year, we expect total CapEx for 2024 to be approximately $8 million which includes the expected total investment in rental equipment for 2024 of $5 million and approximately 3 million in other CapEx related to the acceleration of our ODR strategy.

第三季調整後 EBITDA 的自由現金流轉換率為 75.3%，去年第三季為 82.1%。2024 年，我們繼續將自由現金流轉換率目標定為約 70%，不包括租賃設備的投資。今年早些時候，我們在租賃設備上投資了400萬，並計劃在今年年底前再投資100萬。加上今年對租賃設備的額外投資，我們預計2024 年的資本支出總額約為800 萬美元，其中包括2024 年租賃設備的預期總投資500 萬美元，以及與加速我們的ODR 策略相關的其他資本支出約300 萬美元。

Turning to our balance sheet at the end of Q3, we had 51.2 million in cash and cash equivalents and 10 million borrowed on our revolving credit facility at a weighted average interest rate of 5.72%, which reflects our interest rate swap agreement for the quarter interest income exceeded interest expense.

轉向我們第三季末的資產負債表，我們有5,120 萬美元的現金和現金等價物，以及透過循環信貸額度借入的1,000 萬美元，加權平均利率為5.72%，這反映了我們對季度利息的利率掉期協議收入超過利息支出。

Our balance sheet remains strong and we believe we are well positioned to support investments and acquisitions to drive continued ODR revenue growth and margin expansion. In keeping with what we think is good, housekeeping, capital, planning and governance. We took steps to file a universal shelf form S-3 registration statement in connection with our quarter end as our previously filed form S-3 registration statement had expired due to its age.

我們的資產負債表仍然強勁，我們相信我們有能力支持投資和收購，以推動 ODR 收入持續成長和利潤率擴張。與我們認為好的保持一致的是，內務管理、資本、規劃和治理。我們採取措施提交了與季度末相關的通用擱置表格 S-3 註冊聲明，因為我們先前提交的表格 S-3 註冊聲明已因時間過長而過期。

As noted, our current liquidity position remains strong and we currently have no plans or intentions to conduct any type of registration offering on this form S-3. This is a routine action to ensure that we provide future funding optionality to the company should we need it in the future.

如前所述，我們目前的流動性狀況依然強勁，目前我們沒有計劃或意圖在此 S-3 表格上進行任何類型的註冊發行。這是一項例行行動，以確保我們在未來需要時為公司提供未來的融資選擇。

That concludes our prepared remarks. I'll now ask the operator to be in. Q&A.

我們準備好的演講到此結束。我現在請接線生進來。問答。

Thank you. We'll now be conducting the question and answer session.

謝謝。我們現在將進行問答環節。

(Operator Instructions)

（操作員說明）

Thank you and our first question is from the line of Rob Brown with Lake Street Capital. Please proceed with your questions.

謝謝您，我們的第一個問題來自 Lake Street Capital 的 Rob Brown。請繼續回答您的問題。

Good morning, Mike and Jayme and congratulations on all the progress.

早安，麥克和傑姆，祝賀所有的進展。

Morning

早晨

Morning.

早晨。

Yes, first question on kind of the overall demand environment very strong quarter where are you seeing kind of activity in the demand environment? And maybe what areas are, are maybe not as good.

是的，第一個問題是關於整體需求環境非常強勁的季度，您在需求環境中看到了哪些活動？也許哪些領域是，也許沒有那麼好。

A couple of different ways one is from a vertical market perspective our 3 verticals just to touch upon the continued strong demand or data centers, health care and industrial manufacturing. So each one of those continues to be strong and I think, you know, for us, it really comes down to our attention and focus to these accounts. We've spent a couple of years now really dedicating resources and I would say both from a local and also from a national level too, to connect relationships too. So I think the other thing from an account, centric type model that we have is kind of building that durable demand.

有幾種不同的方式，一種是從垂直市場的角度來看，我們的三個垂直市場只是為了觸及持續強勁的需求或資料中心、醫療保健和工業製造。因此，其中每一項都繼續保持強勁，我認為，對我們來說，這實際上取決於我們對這些帳戶的關注和關注。我們已經花了幾年的時間真正投入資源，我想說的是，無論是從地方層級或國家層級來說，也都是為了建立關係。因此，我認為我們擁有的以帳戶為中心的模型的另一件事是建立持久的需求。

We talked a little bit today in the prepared remarks about how we are had extreme focus and OpEx focus, making sure that we have offerings that really match our overall goal as a company and kind of drive us towards the building system solutions company. So I think it's really a combination of being on the mission critical accounts where they have to spend, they have to make repairs combined with vertical markets and also kind of building a durable demand.

今天，我們在準備好的發言中談到了我們如何極度關注和關注營運支出，以確保我們提供的產品真正符合我們作為一家公司的總體目標，並在某種程度上推動我們成為建築系統解決方案公司。所以我認為這實際上是他們必須花錢的關鍵任務帳戶、他們必須與垂直市場結合的維修以及建立持久需求的結合。

Okay, great. Thank you and then, and then on the ODR, you talked pretty extensively in the comments about the service model that you're shifting to but because maybe help characterize where you're at in terms of getting that building services solution model in place and how much is there to go and just a sense of kind of where you're at in that evolution.

好的，太好了。謝謝您，然後，在 ODR 上，您在評論中廣泛談論了您要轉向的服務模型，但因為這可能有助於描述您在建立建築服務解決方案模型方面所處的位置，並且還有多少路要走，只是一種你在進化中所處的位置的感覺。

Yeah, and that's really the second pillar which has really evolved, offering striving margins. So we still feel like we're very early on that a lot of our margin pickup has really come from our mix shift. But we really have a three year plan to introduce offerings that really drive us from a typical enc company towards a building system solutions FM, which is durable, demand, consistent customers and really this, this past year '24 was about OpEx focus. We've got these on site Account Managers ,how can we capture as much market share how can we help staff augment our customers, really get to know these facilities and this really sets us up to really, I think going to 25 or 26 really comes down to building their long term capital plan together.

是的，這確實是真正發展的第二支柱，提供了可觀的利潤。因此，我們仍然覺得我們還處於早期階段，我們的利潤率上升實際上來自我們的混合轉變。但我們確實有一個三年計劃來推出真正推動我們從典型的enc 公司轉向建築系統解決方案FM 的產品，這是耐用的、有需求的、一致的客戶，實際上，過去的24 年是關於運營支出的重點。我們有這些現場客戶經理，我們如何獲得盡可能多的市場份額，我們如何幫助員工擴大我們的客戶，真正了解這些設施，這確實讓我們真正做到了，我認為真的會達到 25 或 26歸根結底是共同製定長期資本計畫。

Whether those suite of services are professional consultant, services, program, management, engineering services, infrastructure. Right now, I would tell you just our staff, they're thinking about how can we plan with our customers for the next 3 to 5 years, which of course allows us to again get to know the facility, but also helps us from a predictability from a revenue perspective as well too. So we still view it as a model where we have, it's a combination of OpEx and CapEx, but it's really kind of continues to be a building block approach and I still we're very early and we see we believe there's tons of opportunity from that perspective as well too.

這些服務套件是否為專業顧問、服務、計畫、管理、工程服務、基礎設施。現在，我只想告訴你我們的員工，他們正在考慮如何與客戶一起規劃未來的3到5年，這當然可以讓我們再次了解設施，也可以幫助我們從從收入角度來看也是可預測的。因此，我們仍然將其視為我們擁有的模型，它是營運支出和資本支出的結合，但它實際上仍然是一種構建塊方法，我仍然處於早期階段，我們相信我們相信有大量的機會也是這個觀點。

And kind of moving to M&A to Kent Island looked like a pretty good acquisition on your strategy and you've done a number of these, what's the, how does the pipeline look and you expect more Kent Islands or do we do look to maybe a little bit different mix as you start to continue to do M&A.

在您的策略上，轉向併購肯特島看起來是一次相當不錯的收購，您已經做了很多這樣的收購，具體是什麼，管道看起來如何，您期望更多的肯特島，或者我們是否確實希望當你開始繼續進行併購時，會有一點不同的混合。

So Kent Island is our fourth deal that we've done since November of 21. And in our, we wanted to be our goal continues to be that we want to make sure we're very careful, we're very measured in our approach and we're learning from each deal. Our acquisition approach isn't just adding on a bunch of companies. Our goal is to integrate them both from a systems perspective, but also integrate them from a strategic platform perspective. So we've learned a lot over these four deals in every one of them, we pick up things.

肯特島是我們自 11 月 21 日以來完成的第四筆交易。在我們看來，我們的目標仍然是確保我們非常謹慎，我們的方法非常謹慎，並且我們從每筆交易中學習。我們的收購方式不僅僅是收購一批公司。我們的目標是從系統角度整合它們，同時從策略平台角度整合它們。因此，我們從這四筆交易中的每一筆交易中都學到了很多東西，我們學到了一些東西。

And that's why I think even in our prepared remarks, we really got into a lot about our value creation model. We are looking for three things cultural fit niche do they have something special in their vertical market and then who is their customer list that allows us cultural capability, compatibility is tremendously important because there are changes that we're going to make together with that company. How can we make one plus one equal, 3, 4 or 5 is ultimately our goal and then we've kind of learned over these four deals like what things can we apply at what times we want to take what the acquisition does really well.

這就是為什麼我認為即使在我們準備好的發言中，我們也確實深入探討了我們的價值創造模式。我們正在尋找三件事：文化契合度，他們在垂直市場上有什麼特別的東西嗎？ 他們的客戶名單是誰，可以讓我們具備文化能力，兼容性非常重要，因為我們將與該公司一起做出一些改變。我們如何才能使一加一相等，3、4或5是我們的最終目標，然後我們從這四筆交易中學到了一些東西，比如我們可以在什麼時候應用哪些東西，我們想要收購真正做得很好好的東西。

But we also want to apply what we've learned from a standard platform as well too. So, we've got a robust pipeline, we're really, after learning through these four deals, we really want to apply those for future deals going forward. So we again, we're going to be measured, but we're hoping to have a much more even deal flow and a steadier pace from acquisitions going forward.

但我們也希望應用我們從標準平台學到的知識。因此，我們擁有強大的管道，在了解這四筆交易之後，我們真的希望將其應用於未來的交易。因此，我們將再次進行衡量，但我們希望未來的交易流程更加均勻，收購步伐更加穩定。

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

好的。謝謝。我會把它翻過來。

Our next question from the line of Gerry Sweeney with ROTH Capital. Please receive your questions.

我們的下一個問題來自羅斯資本 (ROTH Capital) 的格里·斯威​​尼 (Gerry Sweeney)。請接收您的問題。

Hey, good morning, Jayme and Mike. Thanks for taking my call.

嘿，早上好，Jayme 和 Mike。感謝您接聽我的電話。

Good morning.

早安.

Good morning.

早安.

A couple of questions probably similar to Rob but slightly different on the on the growth side, how much is growth coming from existing customers versus finding new ones and even taking that a step further, Well, let's just leave it there and then I'll follow up.

有幾個問題可能與 Rob 類似，但在成長方面略有不同，來自現有客戶的成長與尋找新客戶的成長有多少，甚至更進一步，好吧，讓我們把它留在那裡，然後我會跟進。

Yeah, I'll use two different examples to categorize that. I mean, the short answer is coming a lot from our existing customers. So two different ways that we're getting markets here. One is we have lots of customers that have a local and national type field. I mean, the health care market is a perfect example of this. So we've invested in a professional service type office in the Nashville area which is really focused on getting to the CSUITE decision makers from that standpoint. At the same time, we've been working the local level with a lot of these health care providers.

是的，我將使用兩個不同的例子來對其進行分類。我的意思是，簡短的答案來自我們現有的客戶。我們在這裡有兩種不同的方式來開拓市場。一是我們有很多客戶擁有本地和國家類型的領域。我的意思是，醫療保健市場就是一個完美的例子。因此，我們在納許維爾地區投資了一個專業服務類型的辦公室，該辦公室真正專注於從這個角度接觸 CSUITE 決策者。同時，我們一直在地方層級與許多此類醫療保健提供者合作。

So it's a combination of kind of putting a local and national approach together and I talked a lot about the standard platform for an acquisition perspective. I think one thing that makes us really special is we're working together on these accounts and it's a very much a collaborative approach so if we're in a local market and they, we're trying to gain market share where we have influence at a different level that really helps us as well too so that's a big piece. I think data center as well as the health care from a local market share perspective. And again, I think planning going to next year and the prepared market, I kind of use this example that we had a health care customer and we were offering them four or five different things and we've been at it with them, I'd say for probably three years, building a relationship, we have the on site Account Manager.

因此，這是將本地和國家方法結合在一起的一種組合，我從收購角度談了很多關於標準平台的問題。我認為讓我們真正與眾不同的一件事是我們在這些客戶上共同努力，這是一種非常協作的方法，因此如果我們在當地市場並且他們，我們正在努力獲得我們有影響力的市場份額在不同的層面上，這也確實對我們有幫助，所以這是一個很大的部分。我認為從本地市場份額的角度來看資料中心以及醫療保健。再說一次，我認為計劃明年和準備好的市場，我有點用這個例子，我們有一個醫療保健客戶，我們為他們提供四到五種不同的東西，我們一直在與他們合作，我'可以說，在建立關係的過程中可能需要三年時間，我們有現場客戶經理。

But now it's a question of how can we bundle these offerings together? We don't go to market where we have five different sales people approach the customer. We go to the market where we have that on site Account Manager, delivering an overall business solution to them. So, we are able to bundle capital planning, maintenance contract, staff augmentation, proactive analysis all into an overall bundle that's going to allow us, I think even going forward with more of our customers kind of to combine the offerings and to pick up market share and I think do that in a smart collaborative approach. So it's really two different pieces.

但現在的問題是我們要如何將這些產品綁在一起？我們不會去有五個不同銷售人員接觸客戶的市場。我們前往市場，那裡有現場客戶經理，為他們提供整體業務解決方案。因此，我們能夠將資本規劃、維護合約、員工擴充、主動分析全部捆綁到一個整體捆綁中，我認為甚至可以與更多客戶一起整合產品並搶佔市場分享，我認為以一種明智的協作方式來做到這一點。所以這其實是兩個不同的部分。

Got it. If you look at your top, say 10 or 15 customers, how much market share or wild share do you think you have with them or even say, you know what inning you're in with them in terms of penetration?

知道了。如果你看看你的頂級客戶，比如說 10 或 15 個客戶，你認為你在他們身上擁有多少市場份額或狂野份額，甚至說，你知道你在他們身上的滲透率處於什麼階段？

We're very early, I mean, one or two ending, I would say first or second earnings at this point and, and what it really comes down to is we are very careful we we've called down our customer list, our, the customers that we're looking for, it's mission critical, they can't afford downtime. So I always use the example if they have a, if they have a system that goes down on Saturday, they can't wait till Monday. So that's a big piece of it. The second piece of it is, do they have enough scale? And do they are they looking to really invest back into their buildings? So most of the time we end up with customers that have a lot of scale that have a lot of opportunity and we are chipping away locally.

我們還很早，我的意思是，一兩個結局，我會說此時的第一或第二收益，而且，真正歸結為我們非常小心，我們已經調用了我們的客戶名單，我們的，我們正在尋找的客戶，這是關鍵任務，他們無法承受停機時間。所以我總是使用這個例子，如果他們有一個系統在周六宕機，他們就不能等到週一。這是其中的很大一部分。第二個問題是，他們有足夠的規模嗎？他們是否真的希望對自己的建築進行投資？因此，大多數時候，我們最終都會遇到規模很大、機會很多的客戶，而我們正在在地化發展。

But I think kind of as I answered before like this national and local approach as we buy companies, as we continue to gain knowledge of the account, we're going to be able to kind of, I think we're going to be able to pick up market share from that perspective and basically take advantage of the investment that we've had too. So I would say very early innings and that's really because of purpose because we're selecting accounts that have a lot of future scale.

但我認為就像我之前回答的那樣，當我們購買公司時，隨著我們繼續獲得對帳戶的了解，我們將能夠，我認為我們將能夠從這個角度來獲取市場份額，並基本上利用我們所擁有的投資。所以我想說的是，這確實是因為目的，因為我們正在選擇未來規模很大的帳戶。

I mean, I would take that as a positive being early earnings. I'm going to jump around a little bit acquisitions. Understand, Kent Island, etc. But would you ever look at maybe going, a little bit different angle, maybe looking for a company with some specialty services that you could augment your portfolio services to companies?

我的意思是，我認為早期收益是正面的。我將跳過一些收購。了解，肯特島等。

Absolutely. I mean, if we can, ideally, it would be great if we could get something that brings us, you know, gives us markets here, gets us a location and has, has services or offerings that we don't have. That is absolute win. I mean, we've had that a little bit with the industrial air acquisition that we did in November of 2023. They had an equipment product line that they really went to market as an installed solution. Then it's a triple win at that point, you know, customers, you've got an offering and then you've got a location. Absolutely any opportunity that we can to kind of put those together. I mean, our objective from an acquisition perspective is multipronged and that really, I think is a reflection of the opportunity. Not only from, if you look at our geographic footprint, there's lots of opportunity but all the our wish list of things that we like to do any way we can combine those. So we're always out there looking, we have a really robust pipeline and trying to find those special deals.

絕對地。我的意思是，如果我們可以的話，理想情況下，如果我們能得到一些東西，為我們帶來市場，給我們一個位置，並擁有我們沒有的服務或產品，那就太好了。那就是絕對的勝利。我的意思是，我們在 2023 年 11 月進行的工業空氣收購中就遇到過這種情況。他們擁有一條設備產品線，並真正作為安裝解決方案進入市場。然後，這就是三贏，你知道，客戶，你已經獲得了產品，然後你有了一個位置。我們絕對有任何機會將這些整合在一起。我的意思是，從收購的角度來看，我們的目標是多方面的，我認為這確實反映了機會。不僅是，如果你看看我們的地理足跡，你會發現有很多機會，而且我們希望以任何方式將這些機會結合起來。因此，我們總是在那裡尋找，我們有一個非常強大的管道，並試圖找到那些特殊的交易。

Got it. And then final question, gross margin, I went out, I was going to go gross margin second, but acquisitions more pertinent but gross margins. Can you give a little bit more detail? Maybe on some of the evolved offerings you're looking at? Obviously, you have the rentals at chillers, but what else we can look for and obviously gross margins have been ticking up on the ODR side, you know, into, well, you know, well above 30% you know, 31.5% or so. And just curious as how sustainable that is or were there so many, were there some onetime projects or opportunities that sort of drove it in the short term?

知道了。最後一個問題是毛利率，我本來打算把毛利率排在第二位，但收購更相關，但毛利率更高。能提供更多細節嗎？也許是您正在關注的一些改進的產品？顯然，你有冷水機的租金，但我們還能尋找什麼，顯然 ODR 方面的毛利率一直在上升，你知道，遠高於 30%，你知道，31.5% 左右。只是好奇它的可持續性如何，或者是否有這麼多，是否有一些一次性項目或機會在短期內推動了它？

Yeah, from a long term outlook, we think there's lots of opportunity from a margin perspective. We'd love to get to the point where our margins are up over a period of time over to our OEM type companies. But again, this year was about OpEx so it's about rentals' about the on site Account Managers. We're still working through data driven solutions from that perspective, how can we improve our maintenance offering? So sometimes it's a question of strengthen that I think looking into next year.

是的，從長遠來看，我們認為從利潤角度來看存在著許多機會。我們希望在一段時間內我們的利潤率能夠比 OEM 類型的公司有所提高。但同樣，今年是關於營運支出的，所以也是關於現場客戶經理的租金的。從這個角度來看，我們仍在研究數據驅動的解決方案，我們如何改善我們的維護服務？所以有時我認為明年會考慮加強的問題。

Is there equipment upgrades or products that we can offer? How can we go to market from a mechanical infrastructure project? How can we add elements of energy and decarbonization into the offerings that we have professional services which we are starting we've kind of been at it for a little bit already. But how can we help you combine those together to really build that capital plan over a period of time? So we still feel like we're, you know, we've got a three year plan, it's ambitious, but I think at the end of that, we feel comfortable that there's lots of opportunity from a margin perspective.

我們可以提供設備升級或產品嗎？機械基礎建設項目如何走向市場？我們如何將能源和脫碳元素添加到我們正在開始提供的專業服務中，我們已經在這方面做了一些工作。但我們如何幫助您將這些結合起來，在一段時間內真正制定資本計劃？所以我們仍然覺得我們有一個三年計劃，它雄心勃勃，但我認為最終，從利潤角度來看，我們有很多機會。

Okay, I appreciate it. I'll jump back in line. Thanks guys.

好的，我很感激。我會跳回隊列。謝謝你們。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

At this time. I'll turn the floor back to Mike McCann for closing remarks.

此時。我將請麥克‧麥肯 (Mike McCann) 致閉幕詞。

Thank you. We will be participating in the UBS Global Industries and Transportation Conference on December 3rd and 4th. If you'd like to arrange a meeting with us during the conference, please contact UBS conference organizers. Thank you all for joining us today and for your interest in Limbach. If you have any additional questions, please reach out to Julie Kegley at Financial Profiles. Thank you and I hope you have a great holiday season.

謝謝。我們將參加 12 月 3 日至 4 日舉行的瑞銀全球工業和運輸會議。如果您想在會議期間安排與我們會面，請聯絡瑞銀會議主辦單位。感謝大家今天加入我們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。謝謝您，希望您有個愉快的假期。

Thank you. This will conclude today's teleconference. Let me disconnect your lines at this time. Thank you for your participation and have a wonderful day.

謝謝。今天的電話會議到此結束。現在讓我斷開你們的線路。感謝您的參與，祝您有美好的一天。