Southland Announces First Quarter 2025 Results
GRAPEVINE, Texas--(BUSINESS WIRE)--May 13, 2025--
Southland Holdings, Inc. (NYSE American: SLND and SLND WS) ("Southland"), a leading provider of specialized infrastructure construction services, today announced financial results for the quarter ended March 31, 2025.
-- Revenue of $239.5 million for the quarter ended March 31, 2025, compared
to $288.1 million for the quarter ended March 31, 2024.
-- Gross profit of $21.5 million for the quarter ended March 31, 2025,
compared to $20.4 million in gross profit for the quarter ended March 31,
2024.
-- Gross profit margin of 9.0% for the quarter ended March 31, 2025,
compared to 7.1% gross profit margin for the quarter ended March 31,
2024.
-- Net loss attributable to stockholders of $4.6 million, or $(0.08) per
share for the quarter ended March 31, 2025, compared to a net loss
attributable to stockholders of $0.4 million, or $(0.01) per share for
the quarter ended March 31, 2024.
-- EBITDA of $10.1 million for the quarter ended March 31, 2025, compared to
$10.9 million for the quarter ended March 31, 2024. (1)
-- Backlog of $2.47 billion. (1)
(1) Please refer to "Non-GAAP Measures" and reconciliations for our
non-GAAP financial measures, including, "EBITDA" and "Backlog".
"We are off to a strong start in 2025, delivering improved margins and positive operating cash flow in the first quarter," said Frank Renda, Southland's President & Chief Executive Officer. "With strong demand across our markets and a robust pipeline of critical infrastructure opportunities, we are confident in our ability to drive long-term value for our clients and stakeholders."
2025 First Quarter Results
Condensed Consolidated Statements of Operations
Three Months Ended
----------------------------------
(Amounts in thousands) March 31, 2025 March 31, 2024
---------------------------------------- ---------------- ----------------
Revenue $ 239,486 $ 288,097
Cost of construction 218,006 267,676
------------ ------------
Gross profit 21,480 20,421
Selling, general, and administrative
expenses 16,465 14,394
------------ ------------
Operating income 5,015 6,027
Gain (loss) on investments, net 17 (76)
Other income, net 743 536
Interest expense (8,874) (5,655)
------------ ------------
Earnings (losses) before income taxes (3,099) 832
Income tax expense (benefit) (313) 307
------------ ------------
Net income (loss) (2,786) 525
Net income attributable to
noncontrolling interests 1,766 931
------------ ------------
Net loss attributable to Southland
Stockholders $ (4,552) $ (406)
============ ============
Net loss per share attributable to
common stockholders
Basic (1) $ (0.08) $ (0.01)
Diluted (1) $ (0.08) $ (0.01)
Weighted average shares outstanding
Basic (1) 53,961,744 47,925,072
Diluted (1) 53,961,744 47,925,072
____________________
(1) Basic net loss per share is the same as diluted net loss per share
attributable to common stockholders for the three months ended March 31,
2025, and March 31, 2024, because the inclusion of potential shares of
common stock would have been anti-dilutive for the period presented.
Revenue for the three months ended March 31, 2025, was $239.5 million, a decrease of $48.6 million, or 16.9%, compared to the three months ended March 31, 2024. Materials & Paving business contributed $18.1 million to revenue in the three months ended March 31, 2025.
Gross profit for the three months ended March 31, 2025, was $21.5 million compared to gross profit of $20.4 million for the three months ended March 31, 2024. Gross margin increased from 7.1% to 9.0% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Materials & Paving business negatively impacted gross profit by $9.1 million in the three months ended March 31, 2025.
Selling, general, and administrative costs for the three months ended March 31, 2025, were $16.5 million, an increase of $2.1 million, or 14.4%, compared to the three months ended March 31, 2024. Selling, general, and administrative costs as a percent of revenue were 6.9% for the three months ended March 31, 2025, compared to 5.0% for the three months ended March 31, 2024.
Segment Revenue
Three Months Ended
----------------------------------------
(Amounts in thousands) March 31, 2025 March 31, 2024
----------------- -----------------
% of % of
Total Total
Segment Revenue Revenue Revenue Revenue
----------------------- -------- ------- -------- -------
Civil $102,916 43.0% $ 84,273 29.3%
Transportation 136,570 57.0% 203,824 70.7%
------- -------
Total revenue $239,486 100.0% $288,097 100.0%
======= =======
Segment Gross Profit (Loss)
Three Months Ended
---------------------------------------
(Amounts in thousands) March 31, 2025 March 31, 2024
----------------- ----------------
% of % of
Segment Segment
Gross
Profit Gross
Segment (Loss) Revenue Profit Revenue
----------------------- -------- ------- ------- -------
Civil $ 22,631 22.0% $17,870 21.2%
Transportation (1,151) (0.8)% 2,551 1.3%
------- ------
Gross profit $ 21,480 9.0% $20,421 7.1%
======= ======
EBITDA Reconciliation
Three Months Ended
----------------------------------
(Amounts in thousands) March 31, 2025 March 31, 2024
------------------------------------- ---------------- ----------------
Net loss attributable to Southland
Stockholders $ (4,552) $ (406)
Depreciation and amortization 6,525 5,577
Income tax expense (benefit) (313) 307
Interest expense 8,874 5,655
Interest income $(450.UK)$ (184)
------------ ------------
EBITDA 10,084 10,949
============ ============
Backlog
(Amounts in thousands)
---------------------------------------------- ----------
Balance December 31, 2024 $2,572,912
New contracts, change orders, and adjustments 136,542
Less: contract revenue recognized in 2025 (239,486)
---------
Balance March 31, 2025 $2,469,968
=========
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share
and per share data) As of
-------------------------------------
ASSETS March 31, 2025 December 31, 2024
---------------- -------------------
Current assets
Cash and cash equivalents $ 65,052 $ 72,185
Restricted cash 16,064 15,376
Accounts receivable, net 171,920 179,320
Retainage receivables 111,179 112,264
Contract assets 493,879 483,181
Other current assets 26,860 19,326
------------ ---------------
Total current assets 884,954 881,652
Property and equipment, net 111,153 116,328
Right-of-use assets 12,061 14,897
Investments - unconsolidated entities 129,177 126,705
Investments - limited liability
companies 2,590 2,590
Investments - private equity 2,685 2,699
Deferred tax asset 56,061 54,531
Goodwill 1,528 1,528
Intangible assets, net 1,180 1,180
Other noncurrent assets 1,540 1,539
------------ ---------------
Total noncurrent assets 317,975 321,997
------------ ---------------
Total assets $ 1,202,929 $ 1,203,649
============ ===============
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 206,577 $ 191,670
Retainage payable 33,651 33,622
Accrued liabilities 86,984 91,515
Current portion of long-term debt 46,789 44,525
Short-term operating lease
liabilities 7,693 10,104
Contract liabilities 256,594 249,706
------------ ---------------
Total current liabilities 638,288 621,142
Long-term debt 241,309 255,625
Long-term operating lease liabilities 10,079 10,791
Deferred tax liabilities 292 292
Financing obligations, net 41,472 41,468
Long-term accrued liabilities 58,075 58,075
Other noncurrent liabilities 40,756 40,847
------------ ---------------
Total long-term liabilities 391,983 407,098
------------ ---------------
Total liabilities 1,030,271 1,028,240
------------ ---------------
Commitment and contingencies (Note 7)
Stockholders' equity
Preferred stock, $0.0001 par value,
authorized 50,000,000 shares, none
issued and outstanding as of March
31, 2025 and December 31, 2024 -- --
Common stock, $0.0001 par value,
authorized 500,000,000 shares,
53,987,169 and 53,936,411 issued and
outstanding as of March 31, 2025 and
December 31, 2024, respectively 5 5
Additional paid-in-capital 292,526 292,173
Accumulated deficit (129,170) (124,618)
Accumulated other comprehensive loss (4,231) (3,902)
------------ ---------------
Total stockholders' equity 159,130 163,658
Noncontrolling interest 13,528 11,751
------------ ---------------
Total equity 172,658 175,409
------------ ---------------
Total liabilities and equity $ 1,202,929 $ 1,203,649
============ ===============
Condensed Consolidated Statement of Cash Flows
Three Months Ended
----------------------------------
(Amounts in thousands) March 31, 2025 March 31, 2024
---------------- ----------------
Cash flows from operating activities:
Net income (loss) $ (2,786) $ 525
Adjustments to reconcile net income
(loss) to net cash used in operating
activities
Depreciation and amortization 6,525 5,577
Deferred taxes (1,530) (642)
Share based compensation 464 677
Gain on sale of assets (1,028) (2,385)
Foreign currency remeasurement (gain)
loss (9) 64
Earnings from equity method investments (2,688) (1,907)
TZC investment present value accretion -- (627)
Loss (gain) on trading securities, net (17) 76
Changes in assets and liabilities:
Accounts receivable 8,565 (32,071)
Contract assets (10,684) (16,175)
Other current assets (7,534) 5,450
Right-of-use assets 2,836 1,994
Accounts payable and accrued
liabilities 10,352 40,059
Contract liabilities 6,888 (8,162)
Operating lease liabilities (2,846) (1,883)
Other (79) (467)
------------ ------------
Net cash provided by (used in) operating
activities 6,429 (9,897)
Cash flows from investing activities:
Purchase of property and equipment (1,796) (3,128)
Proceeds from sale of property and
equipment 2,882 2,657
Contributions to other investments -- (13)
Distributions from other investments 31 52
------------ ------------
Net cash provided by (used in) investing
activities 1,117 (432)
Cash flows from financing activities:
Borrowings on revolving credit facility -- 5,000
Borrowings on notes payable 19 222
Payments on notes payable (13,593) (10,650)
Payments of deferred financing costs (49) (75)
Payments from related parties 12 125
Payments on finance lease and financing
obligations (267) (1,359)
Payment of taxes related to net share
settlement of RSUs (111) (206)
------------ ------------
Net cash used in financing activities (13,989) (6,943)
Effect of exchange rate on cash (2) (31)
------------ ------------
Net decrease in cash and cash
equivalents and restricted cash (6,445) (17,303)
Beginning of period 87,561 63,820
------------ ------------
End of period $ 81,116 $ 46,517
============ ============
Supplemental cash flow information
Cash paid for income taxes $ 409 $ 454
Cash paid for interest $ 8,934 $ 5,527
Non-cash investing and financing
activities:
Lease assets obtained in exchange for
new leases $ -- $ 1,252
Assets obtained in exchange for notes
payable $ 1,186 $ 3,341
Related party payable exchanged for note
payable $ -- $ 3,797
Conference Call
Southland will host a conference call at 10:00 a.m. Eastern Time on Wednesday, May 14, 2025. The call may be accessed here, or at www.southlandholdings.com. Following the conference call, a replay will be available on Southland's website.
About Southland
Southland is a leading provider of specialized infrastructure construction services. With roots dating back to 1900, Southland and its subsidiaries form one of the largest infrastructure construction companies in North America, with experience throughout the world. The company serves the bridges, tunnelling, communications, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipeline end markets. Southland is headquartered in Grapevine, Texas.
For more information, please visit Southland's website at southlandholdings.com.
Non-GAAP Financial Measures
This press release includes certain unaudited financial measures not presented in accordance with generally accepted accounting principles ("GAAP"), including but not limited to earnings before interest, taxes, depreciation, and amortization ("EBITDA"), backlog, and certain ratios and other metrics derived therefrom. Note that other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Further, these non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. Southland believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Southland's financial condition and results of operations. Southland also believes that these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which items of expense and income are excluded or included in determining these non-GAAP financial measures.
Please see the accompanying table for reconciliations of the following non-GAAP financial measures for Southland's current and historical results: EBITDA (non-GAAP financial measures) to net income (loss) attributable to common stock.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Southland's current beliefs, expectations and assumptions regarding the future of Southland's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Southland's control. Southland's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Any forward-looking statement made by Southland in this press release is based only on information currently available to Southland and speaks only as of the date on which it is made. Southland undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250513926984/en/
CONTACT: Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com
Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com
(END) Dow Jones Newswires
May 13, 2025 16:33 ET (20:33 GMT)
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。