Everus Reports Strong Third Quarter 2024 Results
Third Quarter 2024 Summary
(all comparisons versus the prior-year period unless otherwise noted)
-
Revenues of
$761.0 million , +6.1%. -
Net income of
$41.8 million , +16.1%; net income margin of 5.5%, +50 basis points. -
Earnings of
82 cents per share, +15.5%. -
Earnings before interest, taxes, depreciation and amortization (EBITDA) of
$65.0 million , +12.1%; EBITDA margin of 8.5%, +40 basis points. -
Backlog of
$2.88 billion , +43.5% from prior year-end. - Reiterated 2024 full-year guidance.
-
Completed spinoff from MDU Resources Group, Inc. on
Oct. 31, 2024 .
Management Commentary
“This has been a transformative period in our company’s evolution, highlighted by our successful tax-free spinoff from MDU Resources on Oct. 31,” said
“Our third quarter results demonstrate the strength of our scaled national platform and market-leading local brands that are benefiting from strong secular tailwinds, including data center work,” Thiede said. “Third quarter revenue increased 6% with balanced growth across both our segments. With our all-time record backlog of
Thiede said, “Based on our results through the first nine months of the year, continued strong momentum in our end markets and our disciplined focus on execution, we are reiterating our 2024 financial guidance that calls for revenues in the range of
Third Quarter 2024 Consolidated Results
Everus reported revenues increased to
The company's gross profit increased to
Everus' net income increased to
The company's EBITDA increased to
Everus' backlog increased to
Third Quarter 2024 Segment Results
Electrical and Mechanical
The company's E&M segment revenues increased to
E&M segment net income increased to
Transmission and Distribution
Everus' T&D segment revenues were
T&D segment net income increased to
Balance Sheet and Cash Flow Commentary
Balance Sheet
On
Everus' working capital, defined as current assets minus current liabilities, was
Everus previously reported that its near-term priorities following the spinoff from MDU Resources will be organic growth investments, value-enhancing mergers and acquisitions, and balance sheet optimization.
Cash Flow
The company's operating cash flows were
The company's capital expenditures were
Everus had free cash flow of
Forecast for Full Year 2024
Everus is reaffirming previously provided guidance for 2024:
-
Revenue is expected to be in the range of
$2.65 billion to$2.85 billion . -
EBITDA is expected to be in the range
$220 million to$240 million , with EBITDA margins expected to be higher than 2023. See the Non-GAAP Financial Measures sections of this news release for further information and reconciliation.
The company's expected results for 2024 are based on these assumptions:
- Normal operating conditions.
- Normal economic conditions.
- Continued availability of labor, necessary equipment and materials.
Basis of Presentation
Prior to the spinoff from MDU Resources on
Non-GAAP Financial Measures
Throughout this news release, Everus presents financial information prepared in accordance with
Conference Call
Management will discuss Everus' third quarter results on a webcast at
Participants also can listen to the webcast by phone at 646-307-1963 for toll-based
About
Forward-Looking Statements
Information in this news release includes certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this news release, including statements about future performance, financial guidance and long-term targets and statements made by the CEO, are expressed in good faith and are believed by the company to have a reasonable basis. This news release highlights key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company’s businesses. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements.” Although the company believes that its expectations are based on reasonable assumptions as of the date they are made, there is no assurance the company’s projections, including estimates for growth, shareholder value creation and financial guidance, will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's recent Form 10 filing and subsequent filings with the
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake any obligation to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.
|
|||||||||||
Condensed Consolidated Statements of Income |
|||||||||||
(Unaudited) |
|||||||||||
|
Three months ended |
|
Nine months ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(In thousands, except per share amounts) |
||||||||||
Operating revenues |
$ |
760,985 |
|
$ |
717,406 |
|
$ |
2,090,047 |
|
$ |
2,218,672 |
Cost of sales |
|
671,085 |
|
|
632,499 |
|
|
1,836,853 |
|
|
1,976,534 |
Gross profit |
|
89,900 |
|
|
84,907 |
|
|
253,194 |
|
|
242,138 |
Selling, general and administrative expenses |
|
36,191 |
|
|
34,816 |
|
|
109,292 |
|
|
102,519 |
Operating income |
|
53,709 |
|
|
50,091 |
|
|
143,902 |
|
|
139,619 |
Interest expense |
|
2,851 |
|
|
4,596 |
|
|
8,823 |
|
|
13,483 |
Other income |
|
1,071 |
|
|
1,208 |
|
|
3,683 |
|
|
2,705 |
Income before income taxes and income from equity method investments |
|
51,929 |
|
|
46,703 |
|
|
138,762 |
|
|
128,841 |
Income taxes |
|
13,995 |
|
|
11,423 |
|
|
37,606 |
|
|
32,822 |
Income from equity method investments |
|
3,833 |
|
|
734 |
|
|
7,797 |
|
|
4,718 |
Net income |
$ |
41,767 |
|
$ |
36,014 |
|
$ |
108,953 |
|
$ |
100,737 |
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.82 |
|
$ |
0.71 |
|
$ |
2.14 |
|
$ |
1.98 |
Diluted |
$ |
0.82 |
|
$ |
0.71 |
|
$ |
2.14 |
|
$ |
1.98 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
50,972 |
|
|
50,972 |
|
|
50,972 |
|
|
50,972 |
Diluted |
|
50,972 |
|
|
50,972 |
|
|
50,972 |
|
|
50,972 |
|
|||||
Condensed Consolidated Balance Sheets |
|||||
(Unaudited) |
|||||
|
|
|
|
||
|
(In thousands, except share and per share amounts) |
||||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
553 |
|
$ |
1,567 |
Receivables, net of allowances of |
|
632,131 |
|
|
534,100 |
Costs and estimated earnings in excess of billings |
|
174,102 |
|
|
158,529 |
Due from related-party |
|
12,270 |
|
|
11,507 |
Inventories |
|
46,923 |
|
|
42,709 |
Prepayments and other current assets |
|
20,553 |
|
|
17,651 |
Total current assets |
|
886,532 |
|
|
766,063 |
Noncurrent assets: |
|
|
|
||
Property, plant and equipment |
|
282,633 |
|
|
259,849 |
Less: accumulated depreciation |
|
153,272 |
|
|
143,831 |
Net property, plant and equipment |
|
129,361 |
|
|
116,018 |
|
|
143,224 |
|
|
143,224 |
Other intangible assets, net of accumulated amortization of |
|
466 |
|
|
2,004 |
Operating lease right-of-use assets |
|
68,852 |
|
|
53,233 |
Noncurrent retention receivable |
|
32,849 |
|
|
21,355 |
Investments |
|
17,648 |
|
|
8,413 |
Other |
|
360 |
|
|
272 |
Total noncurrent assets |
|
392,760 |
|
|
344,519 |
Total assets |
$ |
1,279,292 |
|
$ |
1,110,582 |
Liabilities and Stockholder’s Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Billings in excess of costs and estimated earnings |
$ |
221,662 |
|
$ |
198,231 |
Accounts payable |
|
160,873 |
|
|
116,573 |
Taxes payable |
|
14,006 |
|
|
8,557 |
Due to related-party |
|
15,870 |
|
|
14,615 |
Accrued compensation |
|
66,960 |
|
|
44,721 |
Operating lease liabilities due within one year |
|
26,110 |
|
|
21,143 |
Accrued payroll-related liabilities |
|
37,292 |
|
|
35,342 |
Other accrued liabilities |
|
16,788 |
|
|
13,001 |
Total current liabilities |
|
559,561 |
|
|
452,183 |
Noncurrent liabilities: |
|
|
|
||
Related-party notes payable |
|
214,525 |
|
|
168,531 |
Deferred income taxes |
|
965 |
|
|
6,535 |
Operating lease liabilities |
|
43,247 |
|
|
32,504 |
Other |
|
7,691 |
|
|
1,979 |
Total noncurrent liabilities |
|
266,428 |
|
|
209,549 |
Total liabilities |
$ |
825,989 |
|
$ |
661,732 |
Commitments and contingencies |
|
|
|
||
Common stockholder’s equity: |
|
|
|
||
Common Stock, stated value |
$ |
1 |
|
$ |
1 |
Other paid-in capital |
|
137,947 |
|
|
136,184 |
Retained earnings |
|
315,355 |
|
|
312,665 |
Total stockholder’s equity |
|
453,303 |
|
|
448,850 |
Total liabilities and stockholder’s equity |
$ |
1,279,292 |
|
$ |
1,110,582 |
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
Nine months ended |
||||||
|
2024 |
|
2023 |
||||
|
(in thousands) |
||||||
Operating activities: |
|
|
|
||||
Net income |
$ |
108,953 |
|
|
$ |
100,737 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
16,961 |
|
|
|
15,658 |
|
Amortization |
|
1,538 |
|
|
|
1,575 |
|
Deferred income taxes |
|
(5,570 |
) |
|
|
(734 |
) |
Provision for credit losses |
|
(51 |
) |
|
|
4,385 |
|
Employee stock-based compensation costs |
|
1,034 |
|
|
|
517 |
|
Unrealized gain on investments |
|
(531 |
) |
|
|
— |
|
Gain on sale of assets |
|
(5,513 |
) |
|
|
(6,297 |
) |
Equity in earnings of unconsolidated affiliates, net of distributions |
|
(4,788 |
) |
|
|
(4,718 |
) |
Changes in current assets and liabilities, net of acquisitions: |
|
|
|
||||
Receivables |
|
(97,980 |
) |
|
|
(5,828 |
) |
Due from related-party |
|
(763 |
) |
|
|
1,381 |
|
Costs and estimated earnings in excess of billings |
|
(15,573 |
) |
|
|
(44,802 |
) |
Inventories |
|
(4,214 |
) |
|
|
(8,984 |
) |
Other current assets |
|
(2,303 |
) |
|
|
(2,512 |
) |
Accounts payable |
|
44,265 |
|
|
|
(11,125 |
) |
Due to related-party |
|
10 |
|
|
|
356 |
|
Billings in excess of costs and estimated earnings |
|
23,431 |
|
|
|
12,566 |
|
Other current liabilities |
|
32,760 |
|
|
|
6,540 |
|
Other noncurrent changes |
|
(8,984 |
) |
|
|
2,647 |
|
Net cash provided by operating activities |
|
82,682 |
|
|
|
61,362 |
|
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(34,506 |
) |
|
|
(28,134 |
) |
Net proceeds from sale or disposition of property |
|
9,587 |
|
|
|
12,247 |
|
Investments |
|
(570 |
) |
|
|
(535 |
) |
Net cash used in investing activities |
|
(25,489 |
) |
|
|
(16,422 |
) |
Financing activities: |
|
|
|
||||
Repayment of related-party notes payable |
|
— |
|
|
|
(45,000 |
) |
Repayment of related-party short-term notes payable |
|
— |
|
|
|
(27,000 |
) |
Net amounts received from related-party cash management program |
|
45,994 |
|
|
|
62,527 |
|
Transfers to Centennial |
|
(104,201 |
) |
|
|
(37,026 |
) |
Net cash used in financing activities |
|
(58,207 |
) |
|
|
(46,499 |
) |
Decrease in cash and cash equivalents |
|
(1,014 |
) |
|
|
(1,559 |
) |
Cash and cash equivalents - beginning of period |
|
1,567 |
|
|
|
2,112 |
|
Cash and cash equivalents - end of period |
$ |
553 |
|
|
$ |
553 |
|
Segment and Other Financial Information
(Unaudited)
Revenues
The following table sets forth segment revenues for the periods indicated, as well as the percentage change from the prior period:
|
Three months ended |
|
Nine months ended |
||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
|
(In millions, except percentages) |
||||||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electrical & Mechanical |
$ |
536.9 |
|
|
$ |
516.9 |
|
|
3.9 |
% |
|
$ |
1,481.7 |
|
|
$ |
1,680.2 |
|
|
(11.8 |
)% |
Transmission & Distribution |
|
228.5 |
|
|
|
204.5 |
|
|
11.7 |
% |
|
|
623.8 |
|
|
|
549.5 |
|
|
13.5 |
% |
Eliminations |
|
(4.4 |
) |
|
|
(4.0 |
) |
|
10.0 |
% |
|
|
(15.5 |
) |
|
|
(11.0 |
) |
|
40.9 |
% |
Total operating revenues |
$ |
761.0 |
|
|
$ |
717.4 |
|
|
6.1 |
% |
|
$ |
2,090.0 |
|
|
$ |
2,218.7 |
|
|
(5.8 |
)% |
Backlog
Backlog is a common measurement in the construction services industry. Everus' determination of backlog consists of the uncompleted portion of services to be performed under job-specific contracts. Contracts are subject to delays, defaults or cancellations; changes in scope of services to be provided; and adjustments to costs. Backlog also may be affected by project delays or cancellations resulting from weather conditions, external market factors and economic factors beyond Everus' control, among other things. Accordingly, there is no assurance that backlog will be realized. For the periods presented in the backlog table below, Everus did not experience any material impacts related to delays or cancellations of planned projects included in backlog. The timing of contract awards, duration of large new contracts and the mix of services can significantly affect backlog. Backlog at any point in time may not accurately represent revenue or net income realized in any period, and backlog as of the end of the year may not be indicative of revenue or net income expected to be realized in the following year. Backlog should not be relied upon as a stand-alone indicator of future results.
The following table provides estimated backlog as of the dates indicated and backlog that Everus reasonably estimates will be recognized within the next 12 months following
|
|
Total backlog as
|
|
Total backlog as
|
|
Total backlog as
|
|||
|
(In millions) |
||||||||
Backlog: |
|
|
|
|
|
|
|||
Electrical & Mechanical |
|
$ |
2,567.9 |
|
$ |
1,685.6 |
|
$ |
1,526.0 |
Transmission & Distribution |
|
|
316.9 |
|
|
325.3 |
|
|
324.0 |
Total backlog |
|
$ |
2,884.8 |
|
$ |
2,010.9 |
|
$ |
1,850.0 |
Capital Expenditures
|
|
2024 Estimated |
|
|
|
(In millions) |
|
Total capital expenditures |
|
$ |
52 |
|
|
|
|
Note: Total capital expenditures is presented on a gross basis. |
Non-GAAP Financial Measures
In addition to information prepared in accordance with GAAP, the company evaluates operating performance using the non-GAAP financial measures of organic revenue, organic revenue growth, EBITDA and EBITDA margin, including applicable measures by segment, and evaluates its liquidity using the non-GAAP financial measure of free cash flow. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company's results as reported under GAAP. Because of these limitations, organic revenue, organic revenue growth, EBITDA, EBITDA margin and free cash flow should not be considered as replacements for revenues, net income, net income margin and cash provided by (used in) operating activities, the most comparable GAAP measures, respectively. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare them with other companies’ organic revenue, organic revenue growth, EBITDA, EBITDA margin and free cash flow having the same or similar names.
Organic Revenue and Organic Revenue Growth
Everus uses organic revenue and organic revenue growth to measure its revenue performance on a consistent basis compared to prior years. The company believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of revenue and revenue growth, are useful to investors as they provide a basis for consistently comparing revenue with prior years as well as comparing to other peer companies. Organic revenue is defined as the difference between current year and prior year revenues less the impact of acquired and divested companies in the past 12 months. Organic revenue growth is calculated by dividing organic revenue by prior year revenues.
EBITDA and EBITDA Margin
Everus utilizes EBITDA and EBITDA margin to consistently assess its operating performance and as a basis for strategic planning and forecasting since the company believes EBITDA closely correlates to long-term enterprise value. Everus believes that measuring performance on an EBITDA basis is useful to investors because it enables a more consistent evaluation of its operational performance period to period. Everus also believes these non-GAAP financial measures, in addition to the corresponding GAAP measures of net income and net income margin, are useful to investors and provide meaningful information about operational efficiency by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Investors also may use EBITDA to calculate leverage as a multiple of EBITDA. Management uses EBITDA and EBITDA margin, in addition to GAAP metrics, to evaluate the company's operating results, calculate compensation packages and determine leverage as a multiple of EBITDA to establish the appropriate funding of operations.
EBITDA is calculated by adding back interest expense, income taxes, and depreciation and amortization to net income. EBITDA margin is calculated by dividing EBITDA by operating revenues. EBITDA and EBITDA margin are considered non-GAAP financial measures and are comparable to the corresponding GAAP measures of net income and net income margin, respectively.
The following table reconciles net income to EBITDA and provides the calculation of EBITDA margin.
|
Three months ended |
|
Nine months ended |
||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
|
(In millions, except percentages) |
||||||||||||||||||||
Net income |
$ |
41.8 |
|
|
$ |
36.0 |
|
|
16.1 |
% |
|
$ |
109.0 |
|
|
$ |
100.8 |
|
|
8.1 |
% |
Interest expense |
|
2.8 |
|
|
|
4.7 |
|
|
(40.4 |
)% |
|
|
8.8 |
|
|
|
13.5 |
|
|
(34.8 |
)% |
Income taxes |
|
14.0 |
|
|
|
11.4 |
|
|
22.8 |
% |
|
|
37.6 |
|
|
|
32.8 |
|
|
14.6 |
% |
Depreciation and amortization |
|
6.4 |
|
|
|
5.9 |
|
|
8.5 |
% |
|
|
18.5 |
|
|
|
17.3 |
|
|
6.9 |
% |
EBITDA |
$ |
65.0 |
|
|
$ |
58.0 |
|
|
12.1 |
% |
|
$ |
173.9 |
|
|
$ |
164.4 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues |
$ |
761.0 |
|
|
$ |
717.4 |
|
|
6.1 |
% |
|
$ |
2,090.0 |
|
|
$ |
2,218.7 |
|
|
(5.8 |
)% |
Net income margin |
|
5.5 |
% |
|
|
5.0 |
% |
|
10.0 |
% |
|
|
5.2 |
% |
|
|
4.5 |
% |
|
15.6 |
% |
EBITDA margin |
|
8.5 |
% |
|
|
8.1 |
% |
|
4.9 |
% |
|
|
8.3 |
% |
|
|
7.4 |
% |
|
12.2 |
% |
The following tables reconcile net income to EBITDA by segment.
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
E&M |
T&D |
Corporate
|
Total |
|
E&M |
T&D |
Corporate
|
Total |
||||||||||
|
(In millions) |
||||||||||||||||||
Net income |
$ |
29.4 |
$ |
18.5 |
$ |
(6.1 |
) |
$ |
41.8 |
|
$ |
81.7 |
$ |
43.5 |
$ |
(16.2 |
) |
$ |
109.0 |
Interest expense |
|
— |
|
0.9 |
|
1.9 |
|
|
2.8 |
|
|
0.1 |
|
3.0 |
|
5.7 |
|
|
8.8 |
Income taxes |
|
9.8 |
|
6.2 |
|
(2.0 |
) |
|
14.0 |
|
|
28.5 |
|
14.6 |
|
(5.5 |
) |
|
37.6 |
Depreciation and amortization |
|
1.6 |
|
4.8 |
|
— |
|
|
6.4 |
|
|
4.8 |
|
13.8 |
|
(0.1 |
) |
|
18.5 |
EBITDA |
$ |
40.8 |
$ |
30.4 |
$ |
(6.2 |
) |
$ |
65.0 |
|
$ |
115.1 |
$ |
74.9 |
$ |
(16.1 |
) |
$ |
173.9 |
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
E&M |
T&D |
Corporate
|
Total |
|
E&M |
T&D |
Corporate
|
Total |
||||||||||
|
(In millions) |
||||||||||||||||||
Net income |
$ |
23.1 |
$ |
16.9 |
$ |
(4.0 |
) |
$ |
36.0 |
|
$ |
75.8 |
$ |
37.9 |
$ |
(12.9 |
) |
$ |
100.8 |
Interest expense |
|
1.4 |
|
1.4 |
|
1.9 |
|
|
4.7 |
|
|
4.7 |
|
3.2 |
|
5.6 |
|
|
13.5 |
Income taxes |
|
7.5 |
|
5.6 |
|
(1.7 |
) |
|
11.4 |
|
|
25.2 |
|
12.0 |
|
(4.4 |
) |
|
32.8 |
Depreciation and amortization |
|
1.6 |
|
4.3 |
|
— |
|
|
5.9 |
|
|
4.6 |
|
12.7 |
|
— |
|
|
17.3 |
EBITDA |
$ |
33.6 |
$ |
28.2 |
$ |
(3.8 |
) |
$ |
58.0 |
|
$ |
110.3 |
$ |
65.8 |
$ |
(11.7 |
) |
$ |
164.4 |
The following table provides EBITDA and the calculation of EBITDA margin by segment.
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
|
|
(In millions, except percentages) |
||||||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electrical & Mechanical |
|
$ |
536.9 |
|
|
$ |
516.9 |
|
|
3.9 |
% |
|
$ |
1,481.7 |
|
|
$ |
1,680.2 |
|
|
(11.8 |
)% |
Transmission & Distribution |
|
|
228.5 |
|
|
|
204.5 |
|
|
11.7 |
% |
|
|
623.8 |
|
|
|
549.5 |
|
|
13.5 |
% |
Eliminations |
|
|
(4.4 |
) |
|
|
(4.0 |
) |
|
(10.0 |
)% |
|
|
(15.5 |
) |
|
|
(11.0 |
) |
|
(40.9 |
)% |
Total operating revenues |
|
$ |
761.0 |
|
|
$ |
717.4 |
|
|
6.1 |
% |
|
$ |
2,090.0 |
|
|
$ |
2,218.7 |
|
|
(5.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electrical & Mechanical |
|
$ |
29.4 |
|
|
$ |
23.1 |
|
|
27.3 |
% |
|
$ |
81.7 |
|
|
$ |
75.8 |
|
|
7.8 |
% |
Transmission & Distribution |
|
|
18.5 |
|
|
|
16.9 |
|
|
9.5 |
% |
|
|
43.5 |
|
|
|
37.9 |
|
|
14.8 |
% |
Corporate and other |
|
|
(6.1 |
) |
|
|
(4.0 |
) |
|
(52.5 |
)% |
|
|
(16.2 |
) |
|
|
(12.9 |
) |
|
(25.6 |
)% |
Total net income |
|
$ |
41.8 |
|
|
$ |
36.0 |
|
|
16.1 |
% |
|
$ |
109.0 |
|
|
$ |
100.8 |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electrical & Mechanical |
|
$ |
40.8 |
|
|
$ |
33.6 |
|
|
21.4 |
% |
|
$ |
115.1 |
|
|
$ |
110.3 |
|
|
4.4 |
% |
Transmission & Distribution |
|
|
30.4 |
|
|
|
28.2 |
|
|
7.8 |
% |
|
|
74.9 |
|
|
|
65.8 |
|
|
13.8 |
% |
Corporate and other |
|
|
(6.2 |
) |
|
|
(3.8 |
) |
|
63.2 |
% |
|
|
(16.1 |
) |
|
|
(11.7 |
) |
|
37.6 |
% |
Total EBITDA |
|
$ |
65.0 |
|
|
$ |
58.0 |
|
|
12.1 |
% |
|
$ |
173.9 |
|
|
$ |
164.4 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electrical & Mechanical |
|
|
5.5 |
% |
|
|
4.5 |
% |
|
22.2 |
% |
|
|
5.5 |
% |
|
|
4.5 |
% |
|
22.2 |
% |
Transmission & Distribution |
|
|
8.1 |
% |
|
|
8.3 |
% |
|
(2.4 |
)% |
|
|
7.0 |
% |
|
|
6.9 |
% |
|
1.4 |
% |
Total net income margin |
|
|
5.5 |
% |
|
|
5.0 |
% |
|
10.0 |
% |
|
|
5.2 |
% |
|
|
4.5 |
% |
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electrical & Mechanical |
|
|
7.6 |
% |
|
|
6.5 |
% |
|
16.9 |
% |
|
|
7.8 |
% |
|
|
6.6 |
% |
|
18.2 |
% |
Transmission & Distribution |
|
|
13.3 |
% |
|
|
13.8 |
% |
|
(3.6 |
)% |
|
|
12.0 |
% |
|
|
12.0 |
% |
|
— |
% |
Total EBITDA margin |
|
|
8.5 |
% |
|
|
8.1 |
% |
|
4.9 |
% |
|
|
8.3 |
% |
|
|
7.4 |
% |
|
12.2 |
% |
The following table provides EBITDA guidance reconciliation for the full year 2024.
|
Low |
|
High |
||
|
(In millions) |
||||
Net income |
$ |
140.0 |
|
$ |
150.0 |
Interest expense |
|
10.0 |
|
|
15.0 |
Income taxes |
|
45.0 |
|
|
50.0 |
Depreciation and amortization |
|
25.0 |
|
|
25.0 |
EBITDA |
$ |
220.0 |
|
$ |
240.0 |
Free Cash Flow
Everus uses free cash flow as a measure of liquidity that indicates how much cash the company can produce after taking cash outflows from operations and assets into consideration. The company believes this non-GAAP financial measure, in addition to the corresponding GAAP measure of cash provided by (used in) operating activities, is useful to investors because it provides meaningful information about the company’s financial health and ability to generate cash, support additional debt obligations, pay future dividends and fund growth. Free cash flow does not represent residual cash flow available for discretionary purposes.
Free cash flow is defined as net cash provided by (used in) operating activities less net capital expenditures.
The following table reconciles net cash provided by operating activities to free cash flow.
|
Nine months ended |
||||||
|
2024 |
|
2023 |
||||
|
(In millions) |
||||||
Net cash provided by operating activities |
$ |
82.7 |
|
|
$ |
61.4 |
|
Purchases of property, plant and equipment |
|
(34.5 |
) |
|
|
(28.1 |
) |
Cash proceeds from sale of property, plant and equipment |
|
9.6 |
|
|
|
12.2 |
|
Free cash flow |
$ |
57.8 |
|
|
$ |
45.5 |
|
Non-GAAP Financial Guidance
The company is unable to reconcile forward-looking non-GAAP financial guidance relating 2024 EBITDA margin and long-term targets of organic revenue, organic revenue growth, and EBITDA to their nearest GAAP measure because the company is unable to predict the timing of these adjustments with a reasonable degree of certainty. By their very nature, non-GAAP adjustments are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact the company and its financial results. Therefore, the company is unable to provide a reconciliation of 2024 EBITDA margin guidance, and reconciliations of long-term organic revenue, organic revenue growth and EBITDA guidance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106298553/en/
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