CTRI Centuri Holdings Inc

Centuri Holdings, Inc. (NYSE: CTRI) ("Centuri" or the "Company") today announced financial and operating results for the fourth quarter, ended December 29, 2024, and introduced full year 2025 outlook.

Fourth Quarter 2024 Financial Results

• Fourth quarter 2024 revenue of $717.1 million
• Net income attributable to common stock of $10.3 million (diluted earnings per share of $0.12)
• Adjusted Net Income of $18.4 million (adjusted diluted earnings per share of $0.21)
• Adjusted EBITDA of $70.7 million and Adjusted EBITDA Margin of 9.9%
• On a trailing twelve-month basis, reduced net debt to Adjusted EBITDA ratio to 3.6x as of December 2024 from 4.0x as of December 2023, consistent with prior outlook commentary
• Exited the fourth quarter of 2024 with a backlog totaling $3.7 billion, of which 90% is related to MSA revenue

Full Year 2024 Financial Results

• Achieved full year 2024 outlook provided in July
• Revenue of $2.64 billion
• Net loss attributable to common stock of $6.7 million
• Adjusted EBITDA of $238.2 million, a 9.0% margin
• Net capital expenditures of $89.4 million

Full Year Business Highlights

• Appointed Christian (Chris) Brown as President and Chief Executive Officer, effective December 3, 2024, who brings over three decades of strategic and operational expertise in the energy and infrastructure sectors
• Initiated a CEO-led, company-wide review of business development, resourcing, and the sales process to drive earnings growth
• Secured customer awards reflecting total multi-year estimated revenue potential of more than $220 million from a combination of new and renewed master service agreements ("MSA") as well as strategic bid work

“Our financial performance in the fourth quarter drove full-year revenues that exceeded the mid-point of our 2024 outlook, while our Adjusted EBITDA Margin was within the guidance provided. Centuri experienced higher-than-average emergency restoration services and saw continued improvement in crew counts in its core Non-Union Electric business, while MSA volumes benefited from customers spending budgeted capital late in the period,” said Centuri President & CEO Chris Brown. “In my nearly three months as CEO, I have developed a solid appreciation for our teams, the safety and quality of our services, and the strength of our customer relationships, which are crucial as we secure several important MSA renewals in 2025 and pursue new opportunities. Today’s energy markets offer tremendous growth potential for Centuri with both existing and new customers. To capitalize on this potential, we have implemented a company-wide review of our business development activities to institutionalize a more structured approach to market positioning, cross selling, and further focus on building our sales pipeline and the awarding of new business.”

Management Commentary

Financial results during the fourth quarter of 2024 increased year-on-year, with revenue increasing by $51.8 million, or 7.8%, and Adjusted EBITDA improving by $13.2 million, or 22.9%. Results benefited from increased emergency restoration services, including residual work related to Hurricane Helene, which made landfall late in the third quarter and the impact of Hurricane Milton in October, collectively driving a $46.7 million increase in emergency restoration services revenues versus the prior year period. Core Non-Union Electric results improved from an increase in crew counts, and the core Union Electric segment benefited from a pick-up in project activity.

Partially offsetting these favorable increases, U.S. Gas margins were negatively impacted by unfavorable work mix despite stronger spending in the fourth quarter across several U.S. Gas customers driving a modest year-over-year improvement in revenues. Further, offshore wind revenues, included in the Union Electric segment, declined by $43.0 million, which aligned with expectations.

During the quarter Centuri booked $221 million in new awards of which 45% was MSA renewals and 55% was new contract awards. Looking ahead, we have grown the sales opportunity pipeline by a third which includes $1.5 billion of late stage bids and approximately 40 MSA renewals expected in the next 12 months. We anticipate we will secure new awards in the next twelve months that will deliver a book to bill in excess of 1.1x. Our priority is to continue driving sales growth and increasing both MSA and new contract awards.

Centuri experienced a transformative year in 2024, highlighted by the completion of an initial public offering in April. Despite facing headwinds from reduced customer spending under MSAs, particularly in the first half of the year, Centuri achieved full-year revenue of $2.64 billion, surpassing the $2.6 billion midpoint of guidance provided in July. Additionally, Adjusted EBITDA for the year totaled $238.2 million, reflecting an Adjusted EBITDA Margin of 9.0% that was just within the guidance range of 9.0% to 9.6%.

Centuri’s net debt to adjusted EBITDA ratio improved to 3.6x in December 2024 from 4.0x in December 2023, which was in line with expectations. The Company will continue to focus on improving free cash flow and strengthening the balance sheet throughout 2025.

Introducing Full Year 2025 Outlook

• Revenue outlook of $2.60 to $2.80 billion
• Adjusted EBITDA of $240 to $275 million
• Net capital expenditures of $65 to $80 million

See the 4Q earnings release slides for details on certain key assumptions associated with our Full Year 2025 Outlook.

Centuri Holdings, Inc.

Supplemental Segment Data

(In thousands, except percentages)

(Unaudited)

 

Fiscal three months ended December 29, 2024 compared to the fiscal three months ended December 31, 2023

 

 

Fiscal Three Months Ended

 

Change

(dollars in thousands)

December 29, 2024

 

December 31, 2023

 

$

 

%

Revenue:

 

 

 

 

 

 

 

 

 

 

 

U.S. Gas

$

327,245

 

45.6

%

 

$

310,485

 

46.7

%

 

$

16,760

 

 

5.4

%

Canadian Gas

 

56,754

 

7.9

%

 

 

56,708

 

8.5

%

 

 

46

 

 

0.1

%

Union Electric

 

193,785

 

27.0

%

 

 

205,065

 

30.8

%

 

 

(11,280

)

 

(5.5

%)

Non-Union Electric

 

139,294

 

19.5

%

 

 

93,057

 

14.0

%

 

 

46,237

 

 

49.7

%

Consolidated revenue

$

717,078

 

100.0

%

 

$

665,315

 

100.0

%

 

$

51,763

 

 

7.8

%

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

U.S. Gas

$

20,371

 

6.2

%

 

$

24,117

 

7.8

%

 

$

(3,746

)

 

(15.5

%)

Canadian Gas

 

10,219

 

18.0

%

 

 

9,714

 

17.1

%

 

 

505

 

 

5.2

%

Union Electric

 

19,127

 

9.9

%

 

 

13,710

 

6.7

%

 

 

5,417

 

 

39.5

%

Non-Union Electric

 

21,379

 

15.3

%

 

 

6,367

 

6.8

%

 

 

15,012

 

 

235.8

%

Consolidated gross profit

$

71,096

 

9.9

%

 

$

53,908

 

8.1

%

 

$

17,188

 

 

31.9

%

• Revenue from our U.S. Gas segment totaled $327.2 million, reflecting an increase of $16.8 million, or 5.4%, compared to the prior year period. This increase was primarily due to an increase in bid project work during the current quarter. As a percentage of revenue, gross profit decreased to 6.2% in the current period from 7.8% in the same period from the prior year. Profitability was negatively affected primarily by lower margin work in the northeastern U.S., as in the prior year quarter operations in the region benefited from bid and MSA work that was more profitable for the season.
• Revenue from our Canadian Gas segment remained consistent at $56.8 million. While the segment experienced an increase in MSA volumes, bid work was down due to timing of bid projects. As a percentage of revenue, gross profit increased to 18.0% in the current period as compared to 17.1% in the prior year period.
• Revenue from our Union Electric segment totaled $193.8 million, reflecting a decrease of $11.3 million, or 5.5%, compared to the prior year period. This decrease was driven by a planned decline in offshore wind revenue of $43.0 million, partially offset by increased revenue on bid projects. Emergency restoration services revenue for the Union Electric segment was $9.3 million for the current period compared to $3.0 million for the prior year period. This increase in emergency restoration work as well as higher margin project work drove an increase in profitability, as gross profit margin increased to 9.9% in the current period as compared to 6.7% in the prior year period.
• Revenue from our Non-Union Electric segment totaled $139.3 million, reflecting an increase of $46.2 million, or 49.7%, compared to the prior year period. This increase was primarily due to revenue from emergency restoration services performed early in the quarter in response to Hurricanes Helene and Milton, which accounted for $40.4 million of the segment’s revenue for the current period, compared to none in the prior year period. As a percentage of revenue, gross profit increased to 15.3% in the current period compared to 6.8% in the prior year period, primarily due to the higher profitability of emergency restoration work.

Centuri Holdings, Inc.

Supplemental Segment Data

(In thousands, except percentages)

(Unaudited)

Fiscal Year Ended December 29, 2024 compared to the fiscal year ended December 31, 2023

 

 

Fiscal Year Ended

 

Change

(dollars in thousands)

December 29, 2024

 

December 31, 2023

 

$

 

%

Revenue:

 

 

 

 

 

 

 

 

 

 

 

U.S. Gas

$

1,260,579

 

47.8

%

 

$

1,357,449

 

46.8

%

 

$

(96,870

)

 

(7.1

%)

Canadian Gas

 

197,872

 

7.5

%

 

 

234,794

 

8.1

%

 

 

(36,922

)

 

(15.7

%)

Union Electric

 

693,513

 

26.3

%

 

 

833,094

 

28.7

%

 

 

(139,581

)

 

(16.8

%)

Non-Union Electric

 

485,265

 

18.4

%

 

 

473,939

 

16.4

%

 

 

11,326

 

 

2.4

%

Consolidated revenue

$

2,637,229

 

100.0

%

 

$

2,899,276

 

100.0

%

 

$

(262,047

)

 

(9.0

%)

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

U.S. Gas

$

69,511

 

5.5

%

 

$

123,626

 

9.1

%

 

$

(54,115

)

 

(43.8

%)

Canadian Gas

 

31,306

 

15.8

%

 

 

33,095

 

14.1

%

 

 

(1,789

)

 

(5.4

%)

Union Electric

 

58,002

 

8.4

%

 

 

57,740

 

6.9

%

 

 

262

 

 

0.5

%

Non-Union Electric

 

61,853

 

12.7

%

 

 

58,231

 

12.3

%

 

 

3,622

 

 

6.2

%

Other

 

—

 

—

%

 

 

750

 

NM

 

 

 

(750

)

 

NM

 

Consolidated gross profit

$

220,672

 

8.4

%

 

$

273,442

 

9.4

%

 

$

(52,770

)

 

(19.3

%)

NM — Percentage is not meaningful

Conference Call Information

Centuri will conduct a conference call today, Wednesday, February 26, 2025 at 10:00 AM ET / 7:00 AM PT to discuss its fourth quarter 2024 financial results and other business highlights. The conference call will be webcast live on the Company's investor relations (IR) website at https://investor.centuri.com. The conference call can also be accessed via phone by dialing (800) 225-9448, or for international callers, (203) 518-9708. A supplemental investor presentation will also be available on the IR website prior to the start of the conference call. The earnings call will also be archived on the IR website and a replay of the call will be available by dialing 800-934-3639 in the U.S., or 402-220-1152 internationally. The replay dial-in feature will be made available one hour after the call’s conclusion and will be active for 12 months.

About Centuri

Centuri Holdings, Inc. is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can often be identified by the use of words such as “will,” “predict,” “continue,” “forecast,” “expect,” “believe,” “anticipate,” “outlook,” “could,” “target,” “project,” “intend,” “plan,” “seek,” “estimate,” “should,” “may” and “assume,” as well as variations of such words and similar expressions referring to the future. The specific forward-looking statements made herein include (without limitation) statements regarding our belief that, in the near term, the Company is well positioned to pursue its strategic priorities, inclusive of increasing MSA and new contract awards; our estimation that awards secured in the most recent quarter represent more than $220 million in potential revenue; our estimation of the value of our backlog; our belief that we will secure several important MSA renewals in 2025; our expectation that we will secure new awards in the next twelve months that will deliver a book to bill in excess of 1.1x; our belief that today's energy markets offer tremendous growth potential for Centuri with both existing and new customers; our expectation that we will finalize a new sales and pipeline process in 2025; the belief that this pipeline process will boost Centuri's ability to make decisions and position us for growth and profitability; and the number ranges presented in our Full Year 2025 Outlook. A number of important factors affecting the business and financial results of Centuri could cause actual results to differ materially from those stated in the forward-looking statements. These factors include, but are not limited to, capital market risks and the impact of general economic or industry conditions. Factors that could cause actual results to differ also include (without limitation) those discussed in Centuri’s filings filed from time to time with the U.S. Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise. Centuri does not assume any obligation to update the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

Backlog

Backlog represents our expected revenue from existing contracts and work in progress as of the end of the applicable reporting period.

Book to bill

Book to bill represents the ratio of total awards won in a period to total revenue recognized in the same period.

Non-GAAP Financial Measures

We prepare and present our financial statements in accordance with GAAP. However, management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt to Adjusted EBITDA ratio, Adjusted Net Income, and Adjusted Diluted Earnings per Share, all of which are measures not presented in accordance with GAAP, provide investors with additional useful information in evaluating our performance. We use these non-GAAP measures internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of these non-GAAP measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparisons of results. Management also believes that providing these non-GAAP measures helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such matters.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for (i) non-cash stock-based compensation expense, (ii) strategic review costs, (iii) severance costs, (iv) securitization facility transaction fees, (v) CEO transition costs and (vi) goodwill impairment. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue. Management believes that EBITDA helps investors compare our performance to our peers and gain an understanding of the factors affecting our ongoing cash earnings from which capital investments are made and debt is serviced, and that Adjusted EBITDA provides additional insight by removing certain expenses that are non-recurring and/or non-operational in nature. Management believes that Adjusted EBITDA Margin is useful for the same reason as Adjusted EBITDA, and also provides an additional understanding of how Adjusted EBITDA is impacted by factors other than changes in revenue.

Net Debt to Adjusted Ratio is calculated by dividing net debt as of the latest balance sheet date by the trailing twelve months of adjusted EBITDA. Net debt is defined as the sum of all bank debt on the balance sheet and finance lease liabilities, net of cash. Management believes this leverage is ratio in helping investors understand the extent our business is leveraged.

Adjusted Net Income is defined as net income (loss) adjusted for (i) strategic review costs, (ii) severance costs, (iii) amortization of intangible assets, (iv) securitization facility transaction fees, (v) CEO transition costs, (vi) loss on debt extinguishment, (vii) non-cash stock-based compensation expense, (viii) goodwill impairment and (ix) the income tax impact of adjustments that are subject to tax, which is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. Management believes that Adjusted Net Income helps investors understand the profitability of our business when excluding certain expenses that are non-recurring and/or non-operational in nature. Adjusted Dilutive Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding.

Using EBITDA as a performance measure has material limitations as compared to net income (loss), or other financial measures as defined under GAAP, as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenue, depreciation and amortization are necessary elements of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense net of interest income, depreciation and amortization and income taxes has material limitations as compared to net income (loss). When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net income/loss in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the Company on a full-cost, after-tax basis.

As to certain of the items related to these non-GAAP metrics: (i) non-cash stock-based compensation expense varies from period to period due to changes in the estimated fair value of performance-based awards, forfeitures and amounts granted; (ii) strategic review and related costs incurred in connection with the separation and stand up of Centuri as its own public company are non-recurring; (iii) severance costs relate to non-recurring restructuring activities, (iv) securitization facility transaction fees represent legal and other professional fees incurred to establish our securitization facility, (v) CEO transition costs represent incremental costs incurred to find and hire a replacement CEO, (vi) loss on debt extinguishment relates to the write-off of debt issuance costs on the Company’s term loan and (vii) goodwill impairment can vary from period to period depending on economic and other factors.

Because these non-GAAP metrics, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP metrics may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure and information reconciling the GAAP and non-GAAP financial measures are set forth below.

Centuri Holdings, Inc.

Reconciliation of Non-GAAP Financial Measures

(In thousands unless otherwise noted)

(Unaudited)

 

 

Fiscal Three Months Ended

 

Fiscal Year Ended

(dollars in thousands)

December 29, 2024

 

December 31, 2023

 

December 29, 2024

 

December 31, 2023

Net income (loss)

$

10,331

 

 

$

(212,846

)

 

$

(6,822

)

 

$

(184,506

)

Interest expense, net

 

19,862

 

 

 

24,444

 

 

 

90,515

 

 

 

97,476

 

Income tax expense (benefit)

 

2,943

 

 

 

(7,305

)

 

 

3,466

 

 

 

9,530

 

Depreciation expense

 

26,782

 

 

 

27,801

 

 

 

108,703

 

 

 

118,776

 

Amortization of intangible assets

 

6,651

 

 

 

6,663

 

 

 

26,642

 

 

 

26,670

 

EBITDA

 

66,569

 

 

 

(161,243

)

 

 

222,504

 

 

 

67,946

 

Non-cash stock-based compensation

 

1,421

 

 

 

(298

)

 

 

2,231

 

 

 

1,851

 

Strategic review costs

 

—

 

 

 

1,588

 

 

 

2,010

 

 

 

3,365

 

Severance costs

 

840

 

 

 

3,461

 

 

 

8,028

 

 

 

4,028

 

Securitization facility transaction fees

 

—

 

 

 

—

 

 

 

1,393

 

 

 

—

 

CEO transition costs

 

1,827

 

 

 

—

 

 

 

2,060

 

 

 

—

 

Goodwill impairment

 

—

 

 

 

213,992

 

 

 

—

 

 

 

213,992

 

Adjusted EBITDA

$

70,657

 

 

$

57,500

 

 

$

238,226

 

 

$

291,182

 

Adjusted EBITDA Margin (% of revenue)

 

9.9

%

 

 

8.6

%

 

 

9.0

%

 

 

10.0

%

 

Fiscal Three Months Ended

 

Fiscal Year Ended

(dollars in thousands)

December 29, 2024

 

December 31, 2023

 

December 29, 2024

 

December 31, 2023

Net income (loss)

$

10,331

 

 

$

(212,846

)

 

$

(6,822

)

 

$

(184,506

)

Strategic review costs

 

—

 

 

 

1,588

 

 

 

2,010

 

 

 

3,365

 

Severance costs

 

840

 

 

 

3,461

 

 

 

8,028

 

 

 

4,028

 

Amortization of intangible assets

 

6,651

 

 

 

6,663

 

 

 

26,642

 

 

 

26,670

 

Securitization facility transaction fees

 

—

 

 

 

—

 

 

 

1,393

 

 

 

—

 

CEO transition costs

 

1,827

 

 

 

—

 

 

 

2,060

 

 

 

—

 

Loss on debt extinguishment

 

—

 

 

 

—

 

 

 

1,726

 

 

 

—

 

Non-cash stock-based compensation

 

1,421

 

 

 

(298

)

 

 

2,231

 

 

 

1,851

 

Goodwill impairment

 

—

 

 

 

213,992

 

 

 

—

 

 

 

213,992

 

Income tax impact of adjustments(1)

 

(2,686

)

 

 

(7,683

)

 

 

(11,025

)

 

 

(13,808

)

Adjusted Net Income

$

18,384

 

 

$

4,877

 

 

$

26,243

 

 

$

51,592

 

(1) Calculated based on a blended statutory tax rate of 25%.

Centuri Holdings, Inc.

Reconciliation of Non-GAAP Financial Measures

(In thousands unless otherwise noted)

(Unaudited)

 

 

Fiscal Three Months Ended

 

Fiscal Year Ended

(dollars per share)

December 29, 2024

 

December 31, 2023

 

December 29, 2024

 

December 31, 2023

Diluted earnings (loss) per share attributable to common stock (GAAP as reported)

$

0.12

 

 

$

(2.94

)

 

$

(0.08

)

 

$

(2.60

)

(Deduct) add-back net (loss) income attributable to noncontrolling interests

 

—

 

 

 

(0.03

)

 

 

—

 

 

 

0.02

 

Strategic review costs

 

—

 

 

 

0.02

 

 

 

0.02

 

 

 

0.05

 

Severance costs

 

0.01

 

 

 

0.05

 

 

 

0.10

 

 

 

0.06

 

Securitization transaction fees

 

—

 

 

 

—

 

 

 

0.02

 

 

 

—

 

CEO transition costs

 

0.02

 

 

 

—

 

 

 

0.02

 

 

 

—

 

Loss on debt extinguishment

 

—

 

 

 

—

 

 

 

0.02

 

 

 

—

 

Amortization of intangible assets

 

0.07

 

 

 

0.09

 

 

 

0.32

 

 

 

0.36

 

Non-cash stock-based compensation

 

0.02

 

 

 

—

 

 

 

0.03

 

 

 

0.03

 

Goodwill impairment

 

—

 

 

 

2.99

 

 

 

—

 

 

 

2.99

 

Income tax impact of adjustments

 

(0.03

)

 

 

(0.11

)

 

 

(0.13

)

 

 

(0.19

)

Adjusted Diluted Earnings per Share

$

0.21

 

 

$

0.07

 

 

$

0.32

 

 

$

0.72

 

Centuri Holdings, Inc.

Reconciliation of Non-GAAP Financial Measures

(In thousands unless otherwise noted)

(Unaudited)

 

(dollars in thousands, except Net Debt to Adjusted EBITDA ratio)

December 29, 2024

 

December 31, 2023

Debt

 

 

 

Current portion of long-term debt

$

30,018

 

 

$

42,552

 

Current portion of finance lease liabilities

 

9,331

 

 

 

11,370

 

Long-term debt, net of current portion

 

730,330

 

 

 

1,031,174

 

Line of credit

 

113,533

 

 

 

77,121

 

Finance lease liabilities, net of current portion

 

15,009

 

 

 

24,334

 

Total debt

$

898,221

 

 

$

1,186,551

 

Less: Cash and cash equivalents

 

(49,019

)

 

 

(33,407

)

Net debt

$

849,202

 

 

$

1,153,144

 

 

 

 

 

Trailing twelve month Adjusted EBITDA

$

238,226

 

 

$

291,182

 

Net Debt to Adjusted EBITDA ratio (1)

 

3.6

 

 

 

4.0

 

 

(1) This net debt to adjusted EBITDA ratio may differ slightly from the net leverage ratio calculated for the purposes of the revolving credit facility.

Centuri Holdings, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share information)

(Unaudited)

 

Fiscal Three Months Ended

 

Fiscal Year Ended

 

December 29, 2024

 

December 31, 2023

 

December 29, 2024

 

December 31, 2023

Revenue

$

689,434

 

$

637,244

 

 

$

2,530,394

 

 

$

2,782,845

 

Revenue, related party - parent

 

27,644

 

 

28,071

 

 

 

106,835

 

 

 

116,431

 

Total revenue, net

 

717,078

 

 

665,315

 

 

 

2,637,229

 

 

 

2,899,276

 

Cost of revenue (including depreciation)

 

620,385

 

 

585,309

 

 

 

2,319,744

 

 

 

2,520,420

 

Cost of revenue, related party - parent (including depreciation)

 

25,597

 

 

26,098

 

 

 

96,813

 

 

 

105,414

 

Total cost of revenue

 

645,982

 

 

611,407

 

 

 

2,416,557

 

 

 

2,625,834

 

Gross profit

 

71,096

 

 

53,908

 

 

 

220,672

 

 

 

273,442

 

Selling, general and administrative expenses

 

30,786

 

 

28,712

 

 

 

107,247

 

 

 

110,344

 

Amortization of intangible assets

 

6,651

 

 

6,663

 

 

 

26,642

 

 

 

26,670

 

Goodwill impairment

 

—

 

 

213,992

 

 

 

—

 

 

 

213,992

 

Operating income (loss)

 

33,659

 

 

(195,459

)

 

 

86,783

 

 

 

(77,564

)

Interest expense, net

 

19,862

 

 

24,444

 

 

 

90,515

 

 

 

97,476

 

Other expense (income), net

 

523

 

 

248

 

 

 

(376

)

 

 

(64

)

Income (loss) before income taxes

 

13,274

 

 

(220,151

)

 

 

(3,356

)

 

 

(174,976

)

Income tax expense (benefit)

 

2,943

 

 

(7,305

)

 

 

3,466

 

 

 

9,530

 

Net income (loss)

 

10,331

 

 

(212,846

)

 

 

(6,822

)

 

 

(184,506

)

Net income (loss) attributable to noncontrolling interests

 

32

 

 

(2,186

)

 

 

(98

)

 

 

1,670

 

Net income (loss) attributable to common stock

$

10,299

 

$

(210,660

)

 

$

(6,724

)

 

$

(186,176

)

 

 

 

 

 

 

 

 

Earnings (loss) per share attributable to common stock:

 

 

 

 

 

 

 

Basic

$

0.12

 

$

(2.94

)

 

$

(0.08

)

 

$

(2.60

)

Diluted

$

0.12

 

$

(2.94

)

 

$

(0.08

)

 

$

(2.60

)

Shares used in computing earnings per share:

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

88,518

 

 

71,666

 

 

 

83,286

 

 

 

71,666

 

Weighted average diluted shares outstanding

 

88,609

 

 

71,666

 

 

 

83,286

 

 

 

71,666

 

Centuri Holdings, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

December 29, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

49,019

 

 

$

33,407

 

Accounts receivable, net

 

271,793

 

 

 

335,196

 

Accounts receivable, related party - parent, net

 

9,648

 

 

 

12,258

 

Contract assets

 

235,546

 

 

 

266,600

 

Contract assets, related party - parent

 

2,623

 

 

 

3,208

 

Prepaid expenses and other current assets

 

32,755

 

 

 

32,258

 

Total current assets

 

601,384

 

 

 

682,927

 

Property and equipment, net

 

511,314

 

 

 

545,442

 

Intangible assets, net

 

340,901

 

 

 

369,048

 

Goodwill, net

 

368,302

 

 

 

375,892

 

Right-of-use assets under finance leases

 

33,790

 

 

 

43,525

 

Right-of-use assets under operating leases

 

104,139

 

 

 

118,448

 

Other assets

 

114,560

 

 

 

54,626

 

Total assets

$

2,074,390

 

 

$

2,189,908

 

LIABILITIES, TEMPORARY EQUITY AND EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

30,018

 

 

$

42,552

 

Current portion of finance lease liabilities

 

9,331

 

 

 

11,370

 

Current portion of operating lease liabilities

 

18,695

 

 

 

19,363

 

Accounts payable

 

125,726

 

 

 

116,583

 

Accrued expenses and other current liabilities

 

173,584

 

 

 

187,050

 

Contract liabilities

 

24,975

 

 

 

43,694

 

Total current liabilities

 

382,329

 

 

 

420,612

 

Long-term debt, net of current portion

 

730,330

 

 

 

1,031,174

 

Line of credit

 

113,533

 

 

 

77,121

 

Finance lease liabilities, net of current portion

 

15,009

 

 

 

24,334

 

Operating lease liabilities, net of current portion

 

91,739

 

 

 

105,215

 

Deferred income taxes

 

115,114

 

 

 

135,123

 

Other long-term liabilities

 

66,115

 

 

 

71,076

 

Total liabilities

 

1,514,169

 

 

 

1,864,655

 

Temporary equity:

 

 

 

Redeemable noncontrolling interests

 

4,669

 

 

 

99,262

 

Equity:

 

 

 

Common stock, $0.01 par value, 850,000,000 shares authorized, 88,517,521 shares issued and outstanding at December 29, 2024 and 1,000 shares issued and outstanding at December 31, 2023

 

885

 

 

 

—

 

Additional paid-in capital

 

718,598

 

 

 

374,124

 

Accumulated other comprehensive loss

 

(13,209

)

 

 

(4,025

)

Accumulated deficit

 

(150,722

)

 

 

(144,108

)

Total equity

 

555,552

 

 

 

225,991

 

Total liabilities, temporary equity and equity

$

2,074,390

 

 

$

2,189,908

 

Centuri Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Fiscal Year Ended

 

December 29, 2024

 

December 31, 2023

Net cash provided by operating activities

 

158,230

 

 

 

167,465

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(99,333

)

 

 

(106,650

)

Proceeds from sale of property and equipment

 

9,958

 

 

 

11,800

 

Net cash used in investing activities

 

(89,375

)

 

 

(94,850

)

Cash flows from financing activities:

 

 

 

Proceeds from initial public offering and private placement, net of offering costs paid

 

327,667

 

 

 

—

 

Proceeds from line of credit borrowings

 

353,769

 

 

 

197,101

 

Payment of line of credit borrowings

 

(310,740

)

 

 

(203,771

)

Principal payments on long-term debt

 

(318,668

)

 

 

(44,557

)

Principal payments on finance lease liabilities

 

(11,293

)

 

 

(12,113

)

Redemption of redeemable noncontrolling interest

 

(92,916

)

 

 

(39,894

)

Other

 

(438

)

 

 

(213

)

Net cash used in financing activities

 

(52,619

)

 

 

(103,447

)

Effects of foreign exchange translation

 

(624

)

 

 

273

 

Net increase (decrease) in cash and cash equivalents

 

15,612

 

 

 

(30,559

)

Cash and cash equivalents, beginning of period

 

33,407

 

 

 

63,966

 

Cash and cash equivalents, end of period

$

49,019

 

 

$

33,407

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226046772/en/

For Centuri investors, contact: (623) 879-3700 Investors@Centuri.com

For Centuri media information, contact: Jennifer Russo (602) 781-6958 JRusso@Centuri.com