Limbach Holdings, Inc. (NASDAQ:LMB) Q4 2018 Earnings Conference Call Transcript

Apr 16, 2019 • 09:00 am ET

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Limbach Holdings, Inc. (NASDAQ:LMB) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings. Welcome to the Limbach Holdings Fourth Quarter and Full Year 2018 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded.

I will now turn the conference over to Jeremy Hellman of The Equity Group. Thank you. You may begin.

Executive
Jeremy Hellman

Thank you very much, and good morning, everyone. Yesterday, Limbach Holdings issued the announcement of its 2018 fourth quarter and year-end and financial results and filed this form 10-K. The Company will also be using a slide presentation to accompany this earnings call. The presentation can be found in the Investors section of the Company website at www.limbachinc.com. The Company encourages everyone to review the forward-looking statement disclosure on Slide 2 of the presentation.

With that, I'd like to turn the call over to Charlie Bacon, CEO of Limbach Holdings. Please go ahead, Charlie.

Executive
Charlie Bacon

Thank you, Jeremy, and good morning to all. Welcome everyone and thanks for joining us. Joining me today is our Chief Financial Officer, John Jordan. As Jeremy mentioned, we'll be using the presentation deck and we'll note the pages we're on.

I'll be starting off by providing my executive summary, high-level business comments and highlighting several key initiatives. John will providing detailed financial performance information. I'll come back after John's comments to provide our views of market conditions and an initiative we're taking on around advanced prefabrication to deal with present labor conditions.

Slide 3 summarizes our agenda for our prepared remarks and we'll follow those with a question-and-answer period.

Turning to Slide 4. Starting with Q4, we had a terrific quarter. All the construction and service segments performed well with sales revenue and operating income. The quarter was led by year-on-year revenue growth of 15.2% with EPS coming in at $0.44 per share. One of our strongest quarters. We are pleased with the results.

Construction sales during the quarter were strong with both actual bookings at the backlog, including four significant healthcare projects and several new projects entering preconstruction that we referred to as promised projects. We wrapped up the quarter with record backlog of $559.7 million and had an additional $380 million of promised work that we planned to bring in the form of backlog as those contract terms are finalized.

Our Construction pipeline remained strong. I want to note we were targeting sales to our available human capital resources leveraging the talent we maintain in this heated construction market. We're very focused on controlling growth while maximizing gross margin. We continue to see improved margins, and we don't see that letting off in the near term.

Please turn to Slide 5. Our Service segment continues to perform extremely well. The momentum of our service expansion is exceeding our expectations and we expect that momentum to continue to build. Q4 was another terrific quarter for Service by all measures. To remind everyone, we launched our rapid service growth platform back in 2013 where we delivered