Concrete Pumping Holdings Inc (NASDAQ:BBCP) reported downbeat results for its third quarter and issued weak FY19 sales forecast.
The Denver-based provider of concrete pumping services and concrete waste management services, today reported revenue was up 18% to $78.7 million, compared to the prior-year quarter.
Gross margin jumped 430 basis points from last year’s third quarter to 49.6%. Net income registered $2.3 million, or five cents per diluted share.
Adjusted EBITDA margin increased 540 basis points to 38.9%, compared to 33.5% in the year-ago quarter. As of July 31, 2019, the Company had $4.5 million of cash, $439.1 million of total outstanding debt and $21.8 million of available borrowing capacity under its ABL Credit Agreement.
According to CEO Bruce Young, "This increase in revenue, combined with a 430-basis point expansion in gross margin, were the primary factors responsible for the substantial growth in Adjusted EBITDA over the previous year.
"Additionally, the steps taken to strengthen our supply chain, such as cost reductions in replacement parts, fuel and operating supplies, contributed to our improved Adjusted EBITDA, and position us well to scale our business in the future."
In May, BBCP acquired Capital Pumping, LP, a concrete pumping provider based in Texas for a purchase price of $129.2 million. The closing of this acquisition provided the Company with complementary assets and operations and significantly expanded the Company’s footprint and business in Texas.
Shares sagged 25 cents, or 5.8%, at Tuesday’s opening bell to $4.10
