DENVER, Jan. 14, 2020 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K., today reported financial results for its fourth quarter and fiscal year ended October 31, 2019. 

Fourth Quarter Fiscal Year 2019 Summary

  • Revenue increased 25% to $84.0 million as compared to the fourth quarter of fiscal year 2018.
  • Gross margin increased 340 basis points to 46.3% as compared to the fourth quarter of fiscal year 2018.
  • Net income attributable to common shareholders was $0.1 million or $0.00 per diluted share.
  • Adjusted EBITDA1 increased 33% to $29.6 million with Adjusted EBITDA margin1 increasing 260 basis points to 35.2% as compared to the fourth quarter of fiscal year 2018.
  • Net debt1 decreased $15.9 million from $434.1 million as of July 31, 2019 to $418.2 million as of October 31, 2019.

Fiscal Year 2019 Financial Summary

  • Revenue increased 16% to $283.0 million as compared to fiscal year 2018.
  • Gross margin was up 60 basis points to 44.3% as compared to fiscal year 2018.
  • Net loss attributable to common shareholders was $34.2 million.
  • Adjusted EBITDA1 increased 21% to $95.5 million with Adjusted EBITDA margin1 increasing 120 basis points to 33.8% as compared to fiscal year 2018.

Management Commentary

“We ended the year on a strong note, with 25% revenue growth in the fourth quarter of fiscal year 2019 translating to a 33% increase in Adjusted EBITDA,” said Bruce Young, CEO of CPH. “These results were driven by our margin-enhancing acquisition of Capital Pumping in May 2019, broad end-market strength in the U.S. and accelerated growth in Eco-Pan. We also continued to gain efficiencies in our supply chain while realizing the expected synergies from the Capital Pumping acquisition.

“These results were achieved despite roughly 40% of our U.S. operations being shut down in the final week of the quarter due to a severe, early winter storm that delivered snow and rain from Idaho to Texas. While we estimate the Q4 2019 revenue impact from this event was approximately $1.5 million, we expect the delayed work will be re-captured in early fiscal 2020.

“As we look to the next fiscal year, we believe our positive momentum will continue. While we remain cautious in our U.K. outlook, expecting concrete pumping in the region to be somewhat flat in fiscal 2020, we expect U.S. construction activity to remain robust, particularly in our commercial and infrastructure projects, which accounted for nearly 70% of our total revenue in fiscal 2019. Combining this with our pricing initiatives, margin-enhancing opportunities from Eco-Pan and Capital Pumping, as well as overall economies of scale, we believe we are well-positioned for success and shareholder value creation in fiscal 2020.”

_____________________
1 Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Net debt is also a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for a discussion of the definition of these measures and a reconciliation of Adjusted EBITDA and net debt to their most comparable GAAP measure.

Fourth Quarter Fiscal Year 2019 Financial Results

Revenue in the fourth fiscal quarter increased 25% to $84.0 million compared to $67.4 million in the year-ago quarter. The increase was largely attributable to the acquisition of Capital Pumping, coupled with growth in many of the Company’s existing core markets. This increase was offset by the effect of inclement weather on our U.S. operations at the end of the quarter. On a pro forma basis, which includes the results of recent acquisitions both pre- and post-transaction, revenue increased 5% over the previous year. Adjusting the pro forma revenue for a constant currency exchange rate, revenue increased 6% in the fourth quarter as compared to the prior year.

Gross profit in the fourth fiscal quarter increased 34% to $38.8 million compared to $28.9 million in the year-ago quarter. Gross margin increased 340 basis points to 46.3% compared to 42.9% in the year-ago quarter. The increase in gross margin was primarily due to the post-acquisition contribution from Capital Pumping, more favorable fuel pricing and better procurement costs. This was partially offset by the step-up in depreciation related to the business combination with Industrea Acquisition Corp. in December 2018 (the “Business Combination”), as depreciation expense related to pumping equipment is included in the Company’s cost of operations.

General and administrative expenses in the fourth fiscal quarter were $28.2 million compared to $15.9 million in the year-ago quarter. As a percent of revenue, general and administrative expenses were 33.6% compared to 23.6% in the year-ago quarter. The increase was largely due to a $7.9 million increase in amortization expense primarily due to the Business Combination. The remainder of the increase was largely attributable to stock-based compensation and headcount growth, the latter being a combination of (1) new team members added to assist with our public company requirements and (2) the continuing employment of Capital Pumping team members who moved over from the Capital acquisition. General and administrative expenses as a percent of revenue excluding amortization of intangible assets and stock-based compensation expense would have been 19.6% in the fourth fiscal quarter of 2019 compared to 20.4% in the same year-ago quarter.

Net income attributable to common shareholders in the fourth fiscal quarter was $0.1 million, or $0.00 per diluted share. Adjusted EBITDA1 in the fourth fiscal quarter increased 33% to $29.6 million compared to $22.0 million in the year-ago quarter. Adjusted EBITDA margin increased 220 basis points to 35.2% compared to 33.0% in the year-ago quarter. The increase in revenue, combined with a 340 basis point increase in gross margin, were the primary factors responsible for the strong growth in Adjusted EBITDA.

As of October 31, 2019, the Company had $7.5 million of cash, $425.7 million of total outstanding debt and $29.2 million of available borrowing capacity under its ABL Credit Agreement.

Fiscal Year 2019 Financial Results

Revenue in fiscal year 2019 increased 16% to $283.0 million compared to $243.2 million in fiscal year 2018. The increase was largely attributable to the acquisition of Capital Pumping. On a pro forma basis, which includes the results of recent acquisitions both pre- and post-transaction, revenue increased 3% over the previous year. Adjusting the pro forma revenue for a constant currency exchange rate, revenue increased 4% in fiscal year 2019 as compared to the prior year.

Gross profit in fiscal year 2019 increased 18% to $125.4 million compared to $106.3 million in fiscal year 2018. Gross margin increased 60 basis points to 44.3% compared to 43.7% in fiscal year 2018, primarily due to the contribution from Capital Pumping, more favorable fuel pricing and improved procurement costs.

General and administrative expenses in fiscal year 2019 were $96.9 million compared to $58.8 million in fiscal year 2018. As a percent of revenue, general and administrative expenses were 34.2% compared to 23.6% in fiscal year 2018. The increase was largely due to a $25.1 million increase in amortization expense primarily related to the Business Combination, higher stock-based compensation of $3.3 million, and the addition of Capital Pumping personnel. In addition, the Company incurred a $4.1 million increase in legal, accounting and director-related costs due to being a public company, with approximately $1.6 million of these costs not expected to recur.

Net loss attributable to common shareholders in fiscal year 2019 was $34.2 million. Adjusted EBITDA1 in fiscal year 2019 increased 21% to $95.5 million compared to $79.1 million in fiscal year 2018. Adjusted EBITDA margin increased 120 basis points to 33.7% compared to 32.5% in fiscal year 2018. The increase in revenue, combined with a 60-basis point increase in gross margin, were the primary factors responsible for the strong growth in Adjusted EBITDA.

Segment Results

U.S. Concrete Pumping. Revenue in the fourth fiscal quarter increased 35% to $62.1 million compared to $45.9 million in the year-ago quarter. The incremental benefit of the Capital Pumping acquisition, which added additional pumping capacity in Texas, represented $13.4 million of the increase. This segment also had notable improvements in revenue in most markets. Adjusted EBITDA in the fourth fiscal quarter increased 48% to $19.4 million compared to $13.1 in the year-ago quarter due to post-acquisition contributions from Capital Pumping, better fuel pricing and procurement costs.

Revenue in fiscal year 2019 increased 24% to $203.7 million compared to $164.3 million in fiscal year 2018. The increase was primarily due to the acquisition of Capital Pumping, which added approximately $25.2 million, and the continued organic volume expansion in our other U.S. regions. This segment also had notable improvements in Oklahoma where several special projects required placing booms and Idaho where there was an increase in billable hours. Adjusted EBITDA in fiscal 2019 increased 34% to $62.8 million compared to $46.8 in fiscal year 2018. This was largely due to the acquisition of Capital Pumping, improved gross margin and volume growth across most U.S. markets.

U.K. Operations. Revenue in the fourth fiscal quarter was $13.0 million compared to $13.7 million in the year-ago quarter. The decline in revenue was largely attributable to the strengthening of the U.S. dollar relative to the British Pound Sterling. Excluding any impact from foreign exchange rates, revenue for this segment was essentially flat due to uncertainties in the U.K. economy attributable to Brexit. Adjusted EBITDA in the fourth fiscal quarter decreased 6% to $4.3 million over the previous year primarily due to the currency translation.

Revenue in fiscal year 2019 was $49.2 million compared to $50.4 million in fiscal year 2018. The decline in revenue was largely attributable to the strengthening of the U.S. dollar relative to the British Pound Sterling. Excluding any impact from foreign exchange rates, revenue was up 2% year-over-year due to improved equipment utilization rates. Adjusted EBITDA in fiscal year 2019 decreased by 6% to $15.7 million over fiscal year 2018 primarily due to higher fuel prices and the impact of the strong U.S. dollar.

U.S. Concrete Waste Management Services. Revenue in the fourth fiscal quarter increased 18% to $9.0 million compared to $7.6 million in the year-ago quarter. The increase was driven primarily by higher volumes. Adjusted EBITDA in the fourth fiscal quarter increased 21% to $4.9 million over the year-ago quarter due to higher revenue and greater volume related efficiencies.

Revenue in fiscal year 2019 increased 7% to $30.4 million compared to $28.5 million in fiscal year 2018. The increase was primarily driven by higher volumes. Adjusted EBITDA in fiscal year 2019 increased 7% to $14.2 million compared to fiscal year 2018 due to the higher revenue and improved operating performance.

Fiscal Year 2020 Outlook

The Company expects fiscal year 2020 revenue to range between $315 million and $330 million, Adjusted EBITDA1 to range between $110 million and $115 million and has targeted a net debt-to-Adjusted EBITDA leverage ratio of ~3.5x by the end of the 2020 fiscal year.   
  
Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its fourth quarter and fiscal year 2019 results.

Date: Tuesday, January 14, 2020
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-877-407-9039
International dial-in number: 1-201-689-8470
Conference ID: 13697693

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at www.concretepumpingholdings.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through February 4, 2020.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13697693

About Concrete Pumping Holdings

The Company is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of October 31, 2019, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 28 locations, and route-based concrete waste management services from 16 locations in the U.S. and 1 location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Company’s brand websites at www.brundagebone.comwww.camfaud.co.uk, or www.eco-pan.com.

ForwardLooking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the outcome of any legal proceedings that may be instituted against the Company or its subsidiaries; the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably and retain its key employees, and realize the expected benefits from the acquisition of Capital Pumping; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management also uses this non-GAAP financial measure to compare the Company’s performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and yearly financial reports prepared for the Company’s board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Company’s ongoing operating results and in comparing the Company’s financial results with competitors who also present similar non-GAAP financial measures.

Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, gain (loss) on sale of assets, non-recurring adjustments, management fees and other one-time and non-operational expenses. Adjusted EBITDA is not pro forma for acquisitions. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented.

See “Non-GAAP Measures (Adjusted EBITDA)” below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP. With respect to our expectations under “Fiscal Year 2020 Outlook” above, the Company has not provided a reconciliation of forward-looking non-GAAP measures, primarily due to the variability and difficulty in making accurate forecasts and projections, as not all of the information necessary for a quantitative reconciliation is available to the Company without unreasonable efforts. Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Company’s business. Other companies may calculate Adjusted EBITDA differently and therefore this measure may not be directly comparable to similarly titled measures of other companies.

Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. We believe this non-GAAP measure provides useful information to management and investors in order to monitor the Company's leverage and evaluate the Company's consolidated balance sheet. See “Non-GAAP Measures (Net Debt)” below for a reconciliation of net debt to total debt calculated in accordance with GAAP.

As the underlying business and financial results of the Successor and Predecessor entities are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination, management has combined the fiscal year 2019 results of the Predecessor and Successor periods for comparability in certain tables below. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, the tables below present the non-GAAP combined results for the fiscal year 2019.

Presentation of Predecessor and Successor Financial Results

As a result of the Business Combination, the Company is the acquirer for accounting purposes and CPH is the acquiree and accounting predecessor. The Company’s financial statement presentation distinguishes the Company’s presentations into two distinct periods, the period up to the Business Combination closing date (labeled “Predecessor”) and the period including and after that date (labeled “Successor”). The Business Combination was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. As a result of the application of the acquisition method of accounting as of the effective time of the Business Combination, the accompanying Consolidated Financial Statements include a black line to distinguish the results for Predecessor and Successor reporting entities shown, as they are presented on a different basis and are therefore, not comparable.

Contact:

 Company:
Iain Humphries
Chief Financial Officer
1-303-289-7497
Investor Relations:
Gateway Investor Relations
Cody Slach
1-949-574-3860
BBCP@gatewayir.com


     
Concrete Pumping Holdings, Inc.    
Consolidated Balance Sheets    
 Successor  Predecessor
 October 31,   October 31,
(in thousands, except per share amounts)2019
  2018
ASSETS    
     
Current assets:    
Cash and cash equivalents$7,473   $8,621
Trade receivables, net 45,957    40,118
Inventory 5,254    3,810
Income taxes receivable 697    -
Prepaid expenses and other current assets 3,378    3,947
Total current assets 62,759    56,496
     
Property, plant and equipment, net 307,415    201,915
Intangible assets, net 222,293    36,429
Goodwill 276,088    74,656
Other non-current assets 1,813    -
Deferred financing costs 997    648
Total assets$871,365   $370,144
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Revolving loan$23,555   $62,987
Term loans, current portion 20,888    -
Current portion of capital lease obligations 91    85
Accounts payable 7,408    5,192
Accrued payroll and payroll expenses 9,177    6,705
Accrued expenses and other current liabilities 28,106    18,830
Income taxes payable 1,153    1,152
Deferred consideration 1,708    1,458
Total current liabilities 92,086    96,409
     
Long term debt, net of discount for deferred financing costs 360,938    173,470
Capital lease obligations, less current portion 477    568
Deferred income taxes 69,049    39,005
Total liabilities 522,550    309,452
     
Redeemable preferred stock, $0.001 par value, 2,342,264 shares issued    
and outstanding as of October 31, 2018 (liquidation preference of $11,239,060) -    14,672
Zero-dividend convertible perpetual preferred stock, $0.0001 par value,    
2,450,980 shares issued and outstanding as of October 31, 2019 25,000    -
     
Stockholders' equity    
Common stock, $0.001 par value, 15,000,000 shares authorized,    
7,576,289 shares issued and outstanding as of October 31, 2018 -    8
Common stock, $0.0001 par value, 500,000,000 shares authorized,    
58,253,220 shares issued and outstanding as of October 31, 2019 6    -
Additional paid-in capital 350,489    18,724
Accumulated other comprehensive income (599)   584
(Accumulated deficit) retained earnings (26,081)   26,704
Total stockholders' equity 323,815    46,020
     
Total liabilities and stockholders' equity$871,365   $370,144
     



Concrete Pumping Holdings, Inc.             
Consolidated Income Statements     S/P Combined       
 Successor  Predecessor (non-GAAP) Predecessor Successor  Predecessor
(in thousands, except share and per share amounts)December 6,
2018
through
October 31,
2019
  November 1,
2018
through
December 5,
2018
 Year Ended
October 31,
2019
 Year ended
October 31,
2018
 Three months
ended October
31, 2019
  Three months
ended October
31, 2018
              
Revenue$258,565   $24,396  $282,961  $243,223  $83,952   $67,369 
Cost of operations 143,512    14,027   157,539   136,876   45,116    38,446 
Gross profit 115,053    10,369   125,422   106,347   38,836    28,923 
Gross margin 44.5%   42.5%  44.3%  43.7%  46.3%   42.9%
              
General and administrative expenses 91,914    4,936   96,850   58,789   28,221    15,902 
Transaction costs 1,521    14,167   15,688   7,590   63    5,070 
Income (loss) from operations 21,618    (8,734)  12,884   39,968   10,552    7,951 
              
Interest expense, net (34,880)   (1,644)  (36,524)  (21,425)  (10,127)   (5,735)
Loss on extinguishment of debt -    (16,395)  (16,395)  -   -    - 
Other income, net 47    6   53   55   (12)   21 
Income (loss) before income taxes (13,215)   (26,767)  (39,982)  18,598   413    2,237 
              
Income tax expense (benefit) (3,303)   (4,192)  (7,495)  (9,784)  (188)   848 
Net (loss) income attributable to Concrete Pumping Holdings, Inc. (9,912)   (22,575)  (32,487)  28,382   601    1,389 
              
Less preferred shares dividends (1,623)   (126)  (1,749)  (1,428)  (464)   (378)
Less undistributed earnings allocated to preferred shares -    -   -   (6,365)  -    (238)
              
Undistributed (loss) income available to common shareholders (11,535)  $(22,701) $(34,236) $20,589  $137   $773 
              
Weighted average common shares outstanding             
Basic 41,445,508    7,576,289     7,576,289   52,497,761    7,576,289 
Diluted 41,445,508    7,576,289     8,325,890   55,629,929    8,497,727 
              
Net (loss) income per common share             
Basic$(0.28)  $(3.00)   $2.72  $0.00   $0.00 
Diluted$(0.28)  $(3.00)   $2.47  $0.00   $0.00 
              


Concrete Pumping Holdings, Inc.           
Consolidated Statements of Cash Flows           
 Successor  Predecessor Successor  Predecessor
(in thousands, except per share amounts)Three months
ended
October
31, 2019
  Three months
ended October
31, 2018
 December 6,
2018 through
October 31,
2019
  November 1,
2018 through
December 5,
2018
 Year ended
October 31,
2018
            
Net income (loss)$601   $1,389  $(9,912)  $(22,575) $28,382 
Adjustments to reconcile net income to net cash provided by           
operating activities:           
Depreciation 6,154    4,763   20,279    2,060   17,719 
Deferred income taxes 537    616   (2,446)   (4,355)  (11,106)
Amortization of deferred financing costs 1,058    457   3,664    152   1,690 
Write off deferred debt issuance costs -    -   -    3,390   - 
Amortization of debt premium -    (93)  -    (11)  (60)
Amortization of intangible assets 10,131    2,184   32,366    653   7,904 
Stock-based compensation expense 1,633    -   3,619    27   281 
Prepayment penalty on early extinguishment of debt -    -   -    13,004   - 
(Gain)/loss on the sale of property, plant and equipment (1,031)   (359)  (611)   (166)  (2,623)
Accretion of contingent consideration 207    (207)  207    -   527 
Net changes in operating assets and liabilities (net of acquisitions):           
Trade receivables, net (1,515)   (1,718)  (5,861)   485   (7,469)
Inventory (323)   138   (466)   (294)  (707)
Prepaid expenses and other current assets 3,208    667   (1,001)   (1,283)  (1,408)
Income taxes payable, net (1,149)   (1,244)  (1,428)   203   (381)
Accounts payable 363    209   (7,303)   (654)  (1,832)
Accrued payroll, accrued expenses and other current liabilities 257    1,963   (8,330)   17,280   8,702 
Net cash (used in) provided by operating activities 20,131    8,765   22,777    7,916   39,619 
            
Cash flows from investing activities:           
Purchases of property, plant and equipment (6,036)   (10,632)  (35,736)   (503)  (31,738)
Proceeds from sale of property, plant and equipment 1,527    1,329   3,073    364   3,239 
Cash withdrawn from Industrea Trust Account -    -   238,474    -   - 
Acquisition of net assets, net of cash acquired - CPH acquisition (2)   -   (449,436)   -   - 
Acquisition of net assets, net of cash acquired - Capital acquisition -    -   (129,218)   -   - 
Acquisition of net assets, net of cash acquired - Other business combinations -    -   (2,257)   -   (21,000)
Net cash (used in) investing activities (4,511)   (9,303)  (375,100)   (139)  (49,499)
            
Cash flows from financing activities:           
Premium proceeds on long term debt -    600   -    -   600 
Proceeds on long term debt -    (600)  417,000    -   15,000 
Payments on long term debt (5,159)   -   (14,906)   -   - 
Proceeds on revolving loan 61,090    107,244   222,213    4,693   237,195 
Payments on revolving loan (69,931)   (104,502)  (198,863)   (20,056)  (239,588)
Redemption of common shares -    -   (231,415)   -   - 
Payment of debt issuance costs -    -   (24,929)   -   - 
Payments on capital lease obligations (22)   (71)  (78)   (7)  (194)
Issuance of preferred shares -    -   25,000    -   - 
Payment of underwriting fees -    -   (8,050)   -   - 
Issuance of common shares - Dec 2018 -    -   96,900    -   - 
Issuance of common shares - May 2019 -    -   77,387    -   - 
Proceeds on exercise of rollover incentive options -    -   1,370    -   - 
Net cash provided by (used in) financing activities (14,022)   2,671   361,629    (15,370)  13,013 
Effect of foreign currency exchange rate on cash 1,346    (921)  (1,837)   (70)  (1,437)
Net increase (decrease) in cash 2,944    1,212   7,469    (7,663)  1,696 
Cash:           
Beginning of period 4,529    7,409   4    8,621   6,925 
End of period$7,473   $8,621  $7,473   $958  $8,621 
            



Concrete Pumping Holdings, Inc.            
Segment Revenue            
 Successor  Predecessor Change    
(in thousands)Three Months
Ended October
31, 2019
  Three Months
Ended October
31, 2018
 $ %    
U.S. Concrete Pumping$62,062   $45,882  $16,180   35.3%    
U.K. Operations 13,025    13,743   (718)  -5.2%    
U.S. Concrete Waste Management Services 8,973    7,584   1,389   18.3%    
Corporate 624    (1,875)  2,499   -133.3%    
Intersegment (732)   2,035   (2,767)  -136.0%    
 $83,952   $67,369  $16,583   24.6%    
             
      S/P Combined
      
 Successor  Predecessor (non-GAAP) Predecessor
 Change
(in thousands)December 6,
2018 through
October 31,
2019
  November 1,
2018
through
December 5,
2018
 Year Ended
October 31,
2019
 Year ended
October 31,
2018
 $ %
U.S. Concrete Pumping$187,031   $16,659  $203,690  $164,306  $39,384  24.0%
U.K. Operations 44,021    5,143   49,164   50,448   (1,284) -2.5%
U.S. Concrete Waste Management Services 27,779    2,628   30,407   28,469   1,938  6.8%
Corporate 2,258    242   2,500   -   2,500  0.0%
Intersegment (2,524)   (276)  (2,800)  -   (2,800) 0.0%
 $258,565   $24,396  $282,961  $243,223  $39,738  16.3%
             


Concrete Pumping Holdings, Inc.             
Segment Adjusted EBITDA             
      S/P Combined     
 Successor  Predecessor
 (non-GAAP) Predecessor
  Change
(in thousands, except percentages)December 6,
2018 through
October 31,
2019
  November 1,
2018
through
December 5,
2018
 Year Ended
October 31,
2019
 Year ended
October 31,
2018
  $ %
U.S. Concrete Pumping$56,069  $6,752 $62,821  $46,793   $16,028  34.3%
U.K. Operations 14,034   1,660  15,694   16,752    (1,058) -6.3%
U.S. Concrete Waste Management Services 13,178   999  14,177   13,238    939  7.1%
Corporate 2,625   177  2,802   2,367    435  18.4%
 $85,906  $9,588 $95,494  $79,150   $16,344  20.6%
              
 Successor  Predecessor
 Change     
(in thousands, except percentages)Three months
ended
October 31,
2019
  Three months
ended
October 31,
2018
 $ %     
U.S. Concrete Pumping$19,362  $13,052 $6,310   48.3%     
U.K. Operations 4,328   4,583  (255)  -5.6%     
U.S. Concrete Waste Management Services 4,869   4,021  848   21.1%     
Corporate 992   597  395   66.2%     
 $29,551  $22,253 $7,298   32.8%     
              


Concrete Pumping Holdings, Inc.     
Quarterly Financial Performance     
          
(dollars in millions) Revenue Adjusted
EBITDA
1
 Capital
Expenditures
 Adjusted
EBITDA less
Capital
Expenditures

          
Q1 2017 $46 $14 $4 $9
Q2 2017 $51 $16 $3 $13
Q3 2017 $55 $18 $1 $18
Q4 2017 $60 $20 $14 $6
Q1 2018 $53 $16 $7 $9
Q2 2018 $56 $18 $1 $17
Q3 2018 $66 $22 $11 $11
Q4 2018 $68 $22 $9 $13
Q1 2019 $58 $17 $11 $6
Q2 2019 $62 $18 $13 $5
Q3 2019 $79 $31 $4 $27
Q4 2019 $84 $30 $5 $25
         
¹Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definition of this measure and reconciliation of such measure to its most comparable GAAP measure.

NON-GAAP MEASURES (ADJUSTED EBITDA)

We calculate EBITDA by taking GAAP net income and adding back interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is calculated by taking EBITDA and adding back transaction expenses, other adjustments, management fees and other expenses. We believe these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends related to our financial condition and results of operations, as a tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial measures with competitors who also present similar non-GAAP financial measures. In addition, these measures (1) are used in quarterly and yearly financial reports prepared for management and our board of directors and (2) help management to determine incentive compensation. EBITDA and Adjusted EBITDA have limitations and should not be considered in isolation or as a substitute for performance measures calculated under GAAP. This non-GAAP measure excludes certain cash expenses that we are obligated to make. In addition, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently or may not calculate it at all, which limits the usefulness of EBITDA and Adjusted EBITDA as comparative measures. Transaction expenses represent expenses for legal, accounting, and other professionals that were engaged in the completion of various acquisitions. Other adjustments include severance expenses, director fees, and other significant non-recurring costs. See also “Non-GAAP Financial Measures” above.

                 
Concrete Pumping Holdings, Inc.                
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA          
                  
 Predecessor
(dollars in thousands)Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 November 1,
2018
through
December 5,
2018
Consolidated                 
Net income (loss)$(6,296) $2,556  $3,923  $730  $17,558  $4,610  $4,825  $1,389  $(22,575)
Interest expense, net 6,386   6,095   5,456   4,811   5,087   5,126   5,477   5,735   1,644 
Income tax expense (benefit) 646   592   1,822   697   (13,544)  1,211   1,701   848   (4,192)
Depreciation and amortization 6,229   5,919   6,390   8,616   6,110   6,293   6,150   7,070   2,713 
EBITDA 6,965   15,162   17,591   14,854   15,211   17,240   18,153   15,042   (22,410)
Transaction expenses 5,304   -   (465)  (349)  8   1,117   1,395   5,070   14,167 
Loss on debt extinguishment -   213   279   4,669   -   -   -   -   16,395 
Stock based compensation -   -   -   -   93   94   94   -   - 
Other expense (income) (39)  (32)  (19)  (84)  (12)  (8)  (14)  (21)  (6)
Other adjustments 1,172   1,108   1,051   985   1,324   (471)  2,674   2,161   1,442 
Adjusted EBITDA$13,402  $16,451  $18,437  $20,075  $16,624  $17,972  $22,302  $22,252  $9,588 
                  
 Successor S&P
Combined
(non-GAAP)
 Successor Predecessor S&P
Combined
(non-GAAP)
    
(dollars in thousands)December 6,
2018
through
October 31,
2019
 Q1 2019 Q2 2019 Q3 2019 Q4 2019 YTD 2018 YTD 2019    
Consolidated                 
Net income (loss)$(9,912) $(26,205) $(9,645) $2,762  $601  $28,382  $(32,487)    
Interest expense, net 34,880   7,236   9,318   9,843   10,127   21,425   36,524     
Income tax expense (benefit) (3,303)  (6,957)  1,572   (1,922)  (188)  (9,784)  (7,495)    
Depreciation and amortization 52,652   11,087   12,132   16,477   15,669   25,623   55,365     
EBITDA 74,317   (14,839)  13,377   27,160   26,209   65,646   51,907     
Transaction expenses 1,521   14,167   1,282   176   63   7,590   15,688     
Loss on debt extinguishment -   16,395   -   -   -   -   16,395     
Stock based compensation 3,619   -   361   1,625   1,633   281   3,619     
Other expense (income) (47)  (17)  (20)  (28)  12   (55)  (53)    
Other adjustments 6,496   1,442   3,234   1,627   1,635   5,688   7,938     
Adjusted EBITDA$85,906  $17,148  $18,234  $30,560  $29,552  $79,150  $95,494     
                  


Concrete Pumping Holdings, Inc.             
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA       
              
      S/P Combined       
 Successor  Predecessor (non-GAAP)  Successor  Predecessor
(dollars in thousands)December 6,
2018
through
October 31,
2019
  November 1,
2018
through
December 5,
2018
 Year ended
October 31,
2019
 Year ended
October 31,
2018
 Three months
ended October
31, 2019
  Three months
ended October
1, 2018
Consolidated             
Net income (loss)$(9,912)  $(22,575) $(32,487) $28,382  $601   $1,389 
Interest expense, net 34,880    1,644   36,524   21,425   10,127    5,735 
Income tax expense (benefit) (3,303)   (4,192)  (7,495)  (9,784)  (188)   848 
Depreciation and amortization 52,652    2,713   55,365   25,623   15,668    7,070 
EBITDA 74,317    (22,410)  51,907   65,646   26,208    15,042 
Transaction expenses 1,521    14,167   15,688   7,590   63    5,070 
Loss on debt extinguishment -    16,395   16,395   -   -    - 
Stock based compensation 3,619    -   3,619   281   1,633    1 
Other expense (income) (47)   (6)  (53)  (55)  12    (21)
Other adjustments 6,496    1,442   7,938   5,688   1,635    2,161 
Adjusted EBITDA$85,906   $9,588  $95,494  $79,150  $29,551   $22,253 
              
              
U.S. Concrete Pumping             
Net income (loss)$(11,031)  $(25,252) $(36,283) $13,955  $501   $(2,738)
Interest expense, net 32,173    1,154   33,327   17,247   9,415    4,720 
Income tax expense (benefit) (6,658)   (2,102)  (8,760)  (11,473)  (3,244)   (48)
Depreciation and amortization 32,245    1,635   33,880   15,237   10,774    4,456 
EBITDA 46,729    (24,565)  22,164   34,966   17,446    6,390 
Transaction expenses 1,521    14,167   15,688   7,590   63    5,070 
Loss on debt extinguishment -    16,395   16,395   -   -    - 
Stock based compensation 3,619    -   3,619   281   1,633    1 
Other expense (income) (45)   (6)  (51)  (55)  12    (21)
Other adjustments 4,245    761   5,006   4,011   208    1,612 
Adjusted EBITDA$56,069   $6,752  $62,821  $46,793  $19,362   $13,052 
              
U.K. Operations             
Net income (loss)$1,123   $158  $1,281  $3,018  $893   $1,742 
Interest expense, net 2,705    490   3,195   4,173   711    1,014 
Income tax expense (benefit) 538    49   587   503   478    (29)
Depreciation and amortization 8,807    890   9,697   8,060   1,646    2,018 
EBITDA 13,173    1,587   14,760   15,754   3,728    4,745 
Transaction expenses -    -   -   -   -    - 
Loss on debt extinguishment -    -   -   -   -    - 
Stock based compensation -    -   -   -   -    - 
Other expense (income) -    -   -   -   -    - 
Other adjustments 861    73   934   998   600    (162)
Adjusted EBITDA$14,034   $1,660  $15,694  $16,752  $4,328   $4,583 
              
U.S. Concrete Waste Management Services            
Net income (loss)$(1,520)  $2,009  $489  $9,634  $(1,455)  $2,277 
Interest expense, net 2    -   2   1   1    1 
Income tax expense (benefit) 2,485    (1,784)  701   846   2,505    538 
Depreciation and amortization 10,871    163   11,034   2,078   3,039    533 
EBITDA 11,838    388   12,226   12,559   4,090    3,349 
Transaction expenses -    -   -   -   -    - 
Loss on debt extinguishment -    -   -   -   -    - 
Stock based compensation -    -   -   -   -    - 
Other expense (income) (2)   -   (2)  -   -    - 
Other adjustments 1,342    611   1,953   679   779    672 
Adjusted EBITDA$13,178   $999  $14,177  $13,238  $4,869   $4,021 
              
Corporate             
Net income (loss)$1,516   $510  $2,026  $1,775  $662   $108 
Interest expense, net -    -   -   4   -    - 
Income tax expense (benefit) 332    (355)  (23)  340   73    387 
Depreciation and amortization 729    25   754   248   209    63 
EBITDA 2,577    180   2,757   2,367   944    558 
Transaction expenses -    -   -   -   -    - 
Loss on debt extinguishment -    -   -   -   -    - 
Stock based compensation -    -   -   -   -    - 
Other expense (income) -    -   -   -   -    - 
Other adjustments 48    (3)  45   -   48    39 
Adjusted EBITDA$2,625   $177  $2,802  $2,367  $992   $597 
              

NON-GAAP MEASURES (NET DEBT)

Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. We believe this non-GAAP measure provides useful information to management and investors in order to monitor the Company's leverage and evaluate the Company's consolidated balance sheet.

Concrete Pumping Holdings, Inc.    
Reconciliation of Net Debt     
      
(in thousands)October 31,
2019
 July 31,
2019
  
Term loan outstanding402,094  $407,316   
Revolving loan draws outstanding23,555   31,331   
Less: Cash(7,473)  (4,529)  
Net debt418,176   434,118