Southland Holdings, Inc. (NYSE American: SLND and SLND WS)
(“Southland”), a leading provider of specialized infrastructure
construction services, today announced financial results for
quarter ended September 30, 2023.
- Revenue of $312
million for the quarter ended September 30, 2023, down 6.8% from
$335 million for the quarter ended
September 30, 2022.
- Gross profit of
$30 million for the quarter ended September 30, 2023, compared to
$62 million for the quarter ended
September 30, 2022.
- Net income
attributable to stockholders of $4 million, or $0.08 per diluted
share for the quarter ended September 30, 2023, compared
to a net income attributable to stockholders of $35 million for the
quarter ended September 30, 2022.
- EBITDA of $22
million for the quarter ended September 30, 2023, compared to $60
million for the quarter ended September 30, 2022.
- Backlog of $2.54
billion, up 7% compared to $2.37 billion as of
September 30, 2022.
Southland’s President and Chief Executive Officer, Frank Renda,
said, “This quarter’s results demonstrate positive contribution
from recently awarded work in both our Civil and Transportation
segments. While consolidated revenues declined this quarter
compared to the same period last year, our core business delivered
strong margins, offset by certain legacy projects as we work
through completing lower margin backlog from prior years. We
continue to see elevated bidding opportunities which we expect to
carry into 2024 as funds from the Infrastructure Investment and
Jobs Act (IIJA) are allocated towards critical infrastructure
projects across the country.”
2023 Third Quarter Results
Condensed Consolidated Statements of
Operations (unaudited)
|
|
|
|
|
|
|
Three Months Ended |
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
Revenue |
$ |
312,472 |
|
|
$ |
335,125 |
|
Cost of construction |
|
282,943 |
|
|
|
272,715 |
|
Gross
profit |
|
29,529 |
|
|
|
62,410 |
|
Selling, general, and
administrative expenses |
|
15,247 |
|
|
|
15,606 |
|
Operating
income |
|
14,282 |
|
|
|
46,804 |
|
Loss on investments, net |
|
(21 |
) |
|
|
(100 |
) |
Other income, net |
|
2,151 |
|
|
|
2,292 |
|
Interest expense |
|
(6,231 |
) |
|
|
(2,285 |
) |
Income before income
taxes |
|
10,181 |
|
|
|
46,711 |
|
Income tax expense |
|
5,390 |
|
|
|
10,588 |
|
Net
income |
|
4,791 |
|
|
|
36,123 |
|
Net income attributable to
noncontrolling interests |
|
991 |
|
|
|
924 |
|
Net income
attributable to Southland Stockholders |
$ |
3,800 |
|
|
$ |
35,199 |
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders |
|
|
|
|
|
Basic(1) |
$ |
0.08 |
|
|
|
|
Diluted(1) |
$ |
0.08 |
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
Basic(1) |
|
47,856,114 |
|
|
|
|
Diluted(1) |
|
47,872,042 |
|
|
|
|
(1) |
|
The structure of Southland’s historical common equity structure was
in the form of membership percentages and no shares were issued. As
such, reporting periods prior to the three months ended March 31,
2023 will not present share or per share data. |
|
|
|
Revenue for the three months ended
September 30, 2023, was $312.5 million, a decrease of
$22.7 million, or 6.8%, compared to the three months ended
September 30, 2022.
Gross profit for the three months ended
September 30, 2023, was $29.5 million, a decrease of
$32.9 million, or 52.7%, compared to gross profit of $62.4 million
for the three months ended September 30, 2022. Our gross
profit margin decreased from 18.6% to 9.5% for the three months
ended September 30, 2023 compared to the three months
ended September 30, 2022.
Selling, general, and administrative costs for
the three months ended September 30, 2023 were $15.2
million, a decrease of $0.4 million, or 2.3%, compared to the three
months ended September 30, 2022. Selling, general, and
administrative costs as a percent of revenue were 4.9% for the
three months ended September 30, 2023 compared to 4.7%
for the three months ended September 30, 2022.
Condensed Consolidated Statements of
Operations (unaudited)
|
|
|
|
|
|
|
Nine Months Ended |
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
Revenue |
$ |
844,228 |
|
|
$ |
866,627 |
|
Cost of construction |
|
829,550 |
|
|
|
761,549 |
|
Gross
profit |
|
14,678 |
|
|
|
105,078 |
|
Selling, general, and
administrative expenses |
|
47,266 |
|
|
|
43,395 |
|
Operating income
(loss) |
|
(32,588 |
) |
|
|
61,683 |
|
Loss on investments, net |
|
(3 |
) |
|
|
(79 |
) |
Other income, net |
|
23,559 |
|
|
|
936 |
|
Interest expense |
|
(13,790 |
) |
|
|
(6,317 |
) |
Income (loss) before
income taxes |
|
(22,822 |
) |
|
|
56,223 |
|
Income tax expense
(benefit) |
|
(11,446 |
) |
|
|
13,745 |
|
Net income
(loss) |
|
(11,376 |
) |
|
|
42,478 |
|
Net income attributable to
noncontrolling interests |
|
2,314 |
|
|
|
1,474 |
|
Net income (loss)
attributable to Southland Stockholders |
$ |
(13,690 |
) |
|
$ |
41,004 |
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders |
|
|
|
|
|
Basic(1) |
$ |
(0.29 |
) |
|
|
|
Diluted(1) |
$ |
(0.29 |
) |
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
Basic(1) |
|
46,771,938 |
|
|
|
|
Diluted(1) |
|
46,771,938 |
|
|
|
|
(1) |
|
The structure of Southland’s historical common equity structure was
in the form of membership percentages and no shares were issued. As
such, reporting periods prior to the three months ended March 31,
2023 will not present share or per share data. Basic net loss per
share is the same as diluted net loss per share attributable to
common stockholders for the nine months ended September 30, 2023,
because the inclusion of potential shares of common stock would
have been anti-dilutive for the period presented. |
|
|
|
Revenue for the nine months ended
September 30, 2023 was $844.2 million, a decrease of
$22.4 million, or 2.6%, compared to the nine months ended
September 30, 2022.
Gross profit for the nine months ended
September 30, 2022, was $14.7 million, a decrease of
$90.4 million, or 86.0%, compared to gross profit of $105.1 million
for the nine months ended September 30, 2022. Our gross
profit margin decreased from 12.1% to 1.7% for the nine months
ended September 30, 2023 compared to the nine months
ended September 30, 2022.
Selling, general, and administrative costs for
the nine months ended September 30, 2023 were $47.3
million, an increase of $3.9 million, or 8.9%, compared to the nine
months ended September 30, 2022. Selling, general, and
administrative costs as a percent of revenue were 5.6% for the nine
months ended September 30, 2023 compared to 5.0% for the
nine months ended September 30, 2022.
Segment Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
% of Total |
|
|
|
|
|
% of Total |
|
Segment |
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Civil |
$ |
90,708 |
|
|
29.0 |
% |
$ |
71,409 |
|
|
21.3 |
% |
Transportation |
|
221,764 |
|
|
71.0 |
% |
|
263,716 |
|
|
78.7 |
% |
Total revenue |
$ |
312,472 |
|
|
100.0 |
% |
$ |
335,125 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
% of Total |
|
|
|
|
|
% of Total |
|
Segment |
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Civil |
$ |
229,264 |
|
|
27.2 |
% |
$ |
221,303 |
|
|
25.5 |
% |
Transportation |
|
614,964 |
|
|
72.8 |
% |
|
645,324 |
|
|
74.5 |
% |
Total revenue |
$ |
844,228 |
|
|
100.0 |
% |
$ |
866,627 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
% of Segment |
|
|
|
|
|
% of Segment |
|
Segment |
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
Civil |
$ |
12,465 |
|
|
13.7 |
% |
$ |
8,926 |
|
|
12.5 |
% |
Transportation |
|
17,064 |
|
|
7.7 |
% |
|
53,484 |
|
|
20.3 |
% |
Gross profit |
$ |
29,529 |
|
|
9.5 |
% |
$ |
62,410 |
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
% of Segment |
|
|
|
|
|
% of Segment |
|
Segment |
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
Civil |
$ |
27,137 |
|
|
11.8 |
|
% |
$ |
28,315 |
|
|
12.8 |
% |
Transportation |
|
(12,459 |
) |
|
(2.0 |
) |
% |
|
76,763 |
|
|
11.9 |
% |
Gross profit |
$ |
14,678 |
|
|
1.7 |
|
% |
$ |
105,078 |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Net income (loss) attributable to Southland Stockholders |
$ |
3,800 |
|
|
$ |
35,199 |
|
|
$ |
(13,690 |
) |
|
$ |
41,004 |
|
Depreciation and
amortization |
|
7,968 |
|
|
|
11,523 |
|
|
|
24,704 |
|
|
|
35,163 |
|
Income taxes expense
(benefit) |
|
5,390 |
|
|
|
10,588 |
|
|
|
(11,446 |
) |
|
|
13,745 |
|
Interest expense |
|
6,231 |
|
|
|
2,285 |
|
|
|
13,790 |
|
|
|
6,317 |
|
Interest income |
|
(1,060 |
) |
|
|
(18 |
) |
|
|
(1,358 |
) |
|
|
(29 |
) |
EBITDA |
|
22,329 |
|
|
|
59,577 |
|
|
|
12,000 |
|
|
|
96,200 |
|
Transaction related costs |
|
— |
|
|
|
— |
|
|
|
1,594 |
|
|
|
— |
|
Contingent earnout
consideration non-cash expense reversal |
|
— |
|
|
|
— |
|
|
|
(20,689 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
22,329 |
|
|
$ |
59,577 |
|
|
$ |
(7,095 |
) |
|
$ |
96,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
(Amounts in thousands) |
Backlog |
Balance December 31, 2022 |
$ |
2,973,886 |
|
New contracts, change orders, and
adjustments |
|
412,756 |
|
Gross backlog |
|
3,386,642 |
|
Less: contract revenue recognized
in 2023 |
|
(845,323 |
) |
Balance
September 30, 2023 |
$ |
2,541,319 |
|
|
|
|
|
Adjusted Net Income (Loss) and Adjusted Net Income
(Loss) Per Share Attributable to Common Stock
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Amounts in thousands except
shares and per share data) |
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Reconciliation of adjusted net
income (loss) attributable to common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stock (GAAP as
reported) |
$ |
3,800 |
|
|
$ |
35,199 |
|
|
$ |
(13,690 |
) |
|
$ |
41,004 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related costs |
|
— |
|
|
|
— |
|
|
|
1,594 |
|
|
|
— |
|
Contingent earnout
consideration non-cash expense |
|
— |
|
|
|
— |
|
|
|
(20,689 |
) |
|
|
— |
|
Income tax impact of
adjustments(1) |
|
— |
|
|
|
— |
|
|
|
(311 |
) |
|
|
— |
|
Adjusted net income (loss)
attributable to common stockholders |
$ |
3,800 |
|
|
$ |
35,199 |
|
|
$ |
(33,096 |
) |
|
$ |
41,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding for diluted and adjusted diluted earnings per
share(2) |
|
47,872,042 |
|
|
|
|
|
|
|
46,771,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share attributable to common stock(2) |
$ |
0.08 |
|
|
|
|
|
|
$ |
(0.29 |
) |
|
|
|
|
Adjusted diluted earnings
(loss) per share attributable to common stock(2) |
$ |
0.08 |
|
|
|
|
|
|
$ |
(0.71 |
) |
|
|
|
|
(1) |
|
The income tax impact of adjustments that are subject to tax is
determined using the incremental statutory tax rates of the
jurisdictions to which each adjustment relates for the respective
periods. |
|
|
|
(2) |
|
The structure of Southland’s historical common equity structure was
in the form of membership percentages and no shares were issued. As
such, reporting periods prior to the three months ended March 31,
2023 will not present share or per share data. Basic net loss per
share is the same as diluted net loss per share attributable to
common stockholders for the nine months ended September 30, 2023,
because the inclusion of potential shares of common stock would
have been anti-dilutive for the period presented |
|
|
|
Condensed Consolidated Balance Sheets
(unaudited)
|
|
|
|
|
|
(Amounts in thousands, except
share and per share data) |
As of |
ASSETS |
September 30, 2023 |
|
December 31, 2022 |
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
32,211 |
|
|
$ |
57,915 |
|
Restricted cash |
|
14,541 |
|
|
|
14,076 |
|
Accounts receivable, net |
|
198,967 |
|
|
|
135,678 |
|
Retainage receivables |
|
125,196 |
|
|
|
122,682 |
|
Contract assets |
|
515,361 |
|
|
|
512,906 |
|
Other current assets |
|
22,635 |
|
|
|
24,047 |
|
Total current
assets |
|
908,911 |
|
|
|
867,304 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
100,558 |
|
|
|
114,084 |
|
Right-of-use assets |
|
12,858 |
|
|
|
16,893 |
|
Investments - unconsolidated
entities |
|
123,666 |
|
|
|
113,724 |
|
Investments - limited
liability companies |
|
2,590 |
|
|
|
2,590 |
|
Investments - private
equity |
|
3,219 |
|
|
|
3,261 |
|
Deferred tax asset |
|
21,631 |
|
|
|
— |
|
Goodwill |
|
1,528 |
|
|
|
1,528 |
|
Intangible assets, net |
|
1,822 |
|
|
|
2,218 |
|
Other noncurrent assets |
|
3,171 |
|
|
|
3,703 |
|
Total noncurrent
assets |
|
271,043 |
|
|
|
258,001 |
|
Total
assets |
$ |
1,179,954 |
|
|
$ |
1,125,305 |
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable |
$ |
137,347 |
|
|
$ |
126,385 |
|
Retainage payable |
|
39,059 |
|
|
|
33,677 |
|
Accrued liabilities |
|
125,236 |
|
|
|
121,584 |
|
Current portion of long-term debt |
|
47,825 |
|
|
|
46,322 |
|
Short-term lease liabilities |
|
13,922 |
|
|
|
16,572 |
|
Contract liabilities |
|
184,627 |
|
|
|
131,557 |
|
Total current
liabilities |
|
548,016 |
|
|
|
476,097 |
|
|
|
|
|
|
|
Long-term debt |
|
261,236 |
|
|
|
227,278 |
|
Long-term lease
liabilities |
|
5,314 |
|
|
|
10,032 |
|
Deferred tax liabilities |
|
2,876 |
|
|
|
3,392 |
|
Other noncurrent
liabilities |
|
96,343 |
|
|
|
48,622 |
|
Total long-term
liabilities |
|
365,769 |
|
|
|
289,324 |
|
Total
liabilities |
|
913,785 |
|
|
|
765,421 |
|
|
|
|
|
|
|
Commitment and
contingencies (Note 7) |
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
Preferred stock, $0.0001 par
value, authorized 50,000,000 shares, none issued and outstanding in
2023 |
|
— |
|
|
|
— |
|
Preferred stock, $1.00 par
value, 24,400,000 shares issued and outstanding in 2022 |
|
— |
|
|
|
24,400 |
|
Common stock, $0.0001 par
value, authorized 500,000,000 shares, 47,856,114 and none issued
and outstanding in 2023 and 2022, respectively |
|
8 |
|
|
|
— |
|
Additional
paid-in-capital |
|
269,920 |
|
|
|
— |
|
Accumulated deficit |
|
(13,690 |
) |
|
|
— |
|
Accumulated other
comprehensive loss |
|
(2,551 |
) |
|
|
(2,576 |
) |
Members’ capital |
|
— |
|
|
|
327,614 |
|
Total stockholders' equity |
|
253,687 |
|
|
|
349,438 |
|
Noncontrolling interest |
|
12,482 |
|
|
|
10,446 |
|
Total
equity |
|
266,169 |
|
|
|
359,884 |
|
Total liabilities and
equity |
$ |
1,179,954 |
|
|
$ |
1,125,305 |
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Cash
Flows (unaudited)
|
|
|
|
|
|
|
Nine Months Ended |
(Amounts in thousands) |
September 30, 2023 |
|
September 30, 2022 |
Cash flows from operating
activities: |
|
|
|
|
|
Net income (loss) |
$ |
(11,376 |
) |
|
$ |
42,478 |
|
Adjustments to reconcile net
income (loss) to net cash used in operating activities |
|
|
|
|
|
Depreciation and
amortization |
|
24,704 |
|
|
|
35,163 |
|
Deferred taxes |
|
(22,148 |
) |
|
|
(440 |
) |
Change in fair value of
earnout liability |
|
(20,689 |
) |
|
|
— |
|
Share based compensation |
|
484 |
|
|
|
— |
|
Gain on sale of assets |
|
(118 |
) |
|
|
(1,343 |
) |
Foreign currency remeasurement
(gain) loss |
|
(37 |
) |
|
|
746 |
|
Earnings from equity method
investments |
|
(5,102 |
) |
|
|
(7,346 |
) |
TZC investment present value
accretion |
|
(1,828 |
) |
|
|
(1,758 |
) |
Loss (gain) on trading
securities, net |
|
3 |
|
|
|
(257 |
) |
Changes in assets and
liabilities: |
|
|
|
|
|
Accounts receivable |
|
(69,471 |
) |
|
|
(24,167 |
) |
Contract assets |
|
(4,376 |
) |
|
|
(72,703 |
) |
Prepaid expenses and other current assets |
|
1,564 |
|
|
|
(1,001 |
) |
ROU assets |
|
4,034 |
|
|
|
930 |
|
Accounts payable and accrued expenses |
|
20,584 |
|
|
|
(6,997 |
) |
Contract liabilities |
|
53,048 |
|
|
|
(29,591 |
) |
Operating lease liabilities |
|
(3,991 |
) |
|
|
(1,206 |
) |
Other |
|
(1,873 |
) |
|
|
(3,444 |
) |
Net cash used in operating
activities |
|
(36,588 |
) |
|
|
(70,936 |
) |
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
Purchase of fixed assets |
|
(7,475 |
) |
|
|
(4,384 |
) |
Proceeds from sale of fixed
assets |
|
7,461 |
|
|
|
3,897 |
|
Loss on investment in limited
liability company |
|
— |
|
|
|
336 |
|
Proceeds from the sale of trading
securities |
|
47 |
|
|
|
840 |
|
Capital contribution to
unconsolidated investments |
|
(540 |
) |
|
|
(1,000 |
) |
Net cash used in investing
activities |
|
(507 |
) |
|
|
(311 |
) |
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
Borrowings on line of credit |
|
3,000 |
|
|
|
55,000 |
|
Payments on line of credit |
|
(8,000 |
) |
|
|
— |
|
Borrowings on notes payable |
|
115,355 |
|
|
|
115 |
|
Payments on notes payable |
|
(111,908 |
) |
|
|
(31,161 |
) |
Payments of deferred financing
costs |
|
(578 |
) |
|
|
— |
|
Advances from related
parties |
|
425 |
|
|
|
— |
|
Payments to related parties |
|
(4 |
) |
|
|
(405 |
) |
Payments on finance lease |
|
(3,538 |
) |
|
|
(6,298 |
) |
Distributions |
|
(110 |
) |
|
|
(1,556 |
) |
Proceeds from merger of Legato II
and Southland Holdings, LLC |
|
17,088 |
|
|
|
— |
|
Net cash provided by financing
activities |
|
11,730 |
|
|
|
15,695 |
|
|
|
|
|
|
|
Effect of exchange rate on
cash |
|
126 |
|
|
|
1,834 |
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents and restricted cash |
|
(25,239 |
) |
|
|
(53,718 |
) |
Beginning of period |
|
71,991 |
|
|
|
111,242 |
|
End of period |
$ |
46,752 |
|
|
$ |
57,524 |
|
|
|
|
|
|
|
Supplemental cash flow
information |
|
|
|
|
|
Cash paid for income taxes |
$ |
3,033 |
|
|
$ |
6,153 |
|
Cash paid for interest |
$ |
12,704 |
|
|
$ |
6,464 |
|
Non-cash investing and financing
activities: |
|
|
|
|
|
Lease assets obtained in exchange
for new leases |
$ |
8,529 |
|
|
$ |
12,537 |
|
Assets obtained in exchange for
notes payable |
$ |
8,626 |
|
|
$ |
3,397 |
|
Issuance of post-merger earn
out shares |
$ |
35,000 |
|
|
$ |
— |
|
Dividend financed with notes
payable |
$ |
50,000 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Conference Call
Southland will host a conference call at 10:00
a.m. Eastern Time on Tuesday, November 14, 2023. 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 www.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”), adjusted earnings before interest, taxes, depreciation,
and amortization (“Adjusted EBITDA”), backlog, adjusted net income
(loss), adjusted net income (loss) per share 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 tables for
reconciliations of the following non-GAAP financial measures for
Southland’s current and historical results: adjusted net income
(loss) per share attributable to common stock (a non-GAAP financial
measure) to net income (loss) per share attributable to common
stock; and adjusted net income (loss) attributable to common stock,
and Adjusted 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.
Southland Contacts:
Cody GallardaEVP, Chief Financial
Officercgallarda@southlandholdings.com
Alex MurrayCorporate Development & Investor
Relationsamurray@southlandholdings.com
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