Concrete Pumping Holdings Reports Strong Second Quarter Fiscal Year 2021 Results

DENVER, June 14, 2021 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for its second quarter of fiscal year 2021 ended April 30, 2021.

Second Quarter Fiscal Year 2021 Summary vs. Second Quarter of Fiscal Year 2020 (where applicable)

  • Revenue increased 4% to $76.9 million compared to $74.0 million.

  • Gross margin increased 30 basis points to 43.3% compared to 43.0%.

  • Net loss attributable to common shareholders improved significantly to $11.4 million or $(0.21) per diluted share, compared to a net loss attributable to common shareholders of $56.2 million or $(1.06) per diluted share.

    • The second quarter of 2021 included a $11.5 million non-cash loss on the revaluation of warrant liabilities compared to a $3.3 million non-cash gain in the same period of fiscal 2020.
    • The second quarter of 2020 included a $57.9 million non-cash goodwill and intangibles impairment charge due to the COVID-19 impact depressing the Company’s market capitalization.

  • Adjusted EBITDA1 increased 7% to $25.0 million compared to $23.5 million, with adjusted EBITDA margin increasing 80 basis points to 32.6% compared to 31.8%.

  • Amounts outstanding under debt agreements was $376.1 million with net debt1 of $362.4 million. Total available liquidity increased to $134.9 million as of April 30, 2021 compared to $118.4 million as of January 31, 2021.

Management Commentary

“Our second quarter continued to highlight the resilience of our business, the flexibility of our projects and the profitability of our model,” said Bruce Young, CEO of Concrete Pumping Holdings. “We experienced a record-setting cold weather event in our South and Central regional markets, yet we delivered a quarter that met our internal expectations. This included continued growth in our market share, strength in residential and infrastructure projects, and recovery in our commercial work. We also continued to demonstrate our strong financial profile with approximately $29 million in year-to-date free cash flow1 that contributed to us improving total available liquidity to $134.9 million. Given our execution to date, we remain in a strong position to execute upon our strategic priorities and financial outlook in 2021.”

_______________
1 Adjusted EBITDA, Adjusted EBITDA margin, net debt and free cash flow are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definitions of these non-GAAP financial measures and a reconciliation to their most comparable GAAP measures.

Second Quarter Fiscal Year 2021 Financial Results

Revenue in the second quarter of fiscal year 2021 increased 4% to $76.9 million compared to $74.0 million in the second quarter of fiscal year 2020. The increase was driven by increased revenue from the Company’s U.K. Operations and its U.S. Concrete Waste Management business.

Gross profit in the second quarter of fiscal year 2021 increased 5% to $33.3 million compared to $31.9 million in the year-ago quarter. Gross margin improved to 43.3% compared to 43.0% in the prior year quarter.

G&A expenses for the fiscal 2021 second quarter were $26.5 million compared to $26.4 million in the fiscal 2020 second quarter. As a percent of revenue, G&A expenses were 34.4% for the fiscal 2021 second quarter compared to 35.6% in the fiscal 2020 second quarter. Excluding amortization of intangible assets and stock-based compensation expense, G&A expenses were down $0.3 million year-over-year to $16.2 million (21.1% of revenue) from $16.4 million (22.2% of revenue).

Net loss attributable to common shareholders improved significantly to $11.4 million or $(0.21) per diluted share, compared to a net loss attributable to common shareholders of $56.2 million or $(1.06) per diluted share. As previously disclosed, the Company recently determined that its outstanding warrants should be accounted for as liabilities and recorded at fair value on the date of the transaction and subsequently re-measured to fair value at each reporting date. For the three months ended April 30, 2021 and 2020, the Company recognized a non-cash loss of $11.5 million and a non-cash gain of $3.3 million, respectively, associated with the change in fair value of warrant liabilities.

Excluding the after-tax impact from the $57.9 million goodwill and intangibles impairment charge in the second quarter of fiscal 2020 and the non-cash gains or losses from the revaluation of warrant liabilities during both years, net income to common shareholders for the second quarter of 2021 was $0.1 million or $0.00 per diluted share versus net loss to common shareholders of $3.9 million or $(0.08) per diluted share.

Adjusted EBITDA in the second quarter of fiscal year 2021 increased 7% to $25.0 million compared to $23.5 million in the year-ago quarter. Adjusted EBITDA margin increased to 32.6% compared to 31.8% in the year-ago quarter, with the improvement mainly due to the increase in revenues.

Liquidity

On April 30, 2021, the Company had debt outstanding of $376.1 million, net debt of $362.4 million and total available liquidity of $134.9 million.

Segment Results

U.S. Concrete Pumping. Revenue in the second quarter of fiscal 2021 was $56.2 million compared to $57.5 million in the year-ago quarter. The decrease was primarily driven by severe weather conditions in Texas. Net loss in the second quarter improved to $0.9 million compared to a net loss of $44.3 million in the prior year quarter, which included the aforementioned goodwill impairment. Adjusted EBITDA was flat at $16.3 million compared to the year-ago quarter.

U.K. Operations. Revenue in the second quarter of fiscal 2021 increased 41% to $11.9 million compared to $8.4 million in the year-ago quarter. The increase was attributable to the region’s recovery from the impacts of COVID-19. Net income in the second quarter improved to $0.4 million compared to a net loss of $16.0 million in the prior year second quarter, which included the goodwill impairment. Adjusted EBITDA improved 64% to $4.1 million compared to $2.5 million in the year-ago quarter.

U.S. Concrete Waste Management Services. Revenue in the second quarter of fiscal 2021 increased 8% to $9.0 million compared to $8.3 million in the year-ago quarter. The increase was due to organic growth, pricing improvements and new product offerings. Net income in the second quarter was $0.8 million compared to $0.9 million in the prior year second quarter. Adjusted EBITDA was $4.0 million compared to $4.1 million in the year-ago quarter.

Fiscal Year 2021 Outlook

The Company continues to expect fiscal year 2021 revenue to range between $300.0 million to $310.0 million, Adjusted EBITDA to range between $105.0 million to $110.0 million, and free cash flow to range between $47.5 million and $52.5 million. The midpoint of the Company's free cash flow outlook implies an 11% yield to its current market capitalization of approximately $470 million.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2021 results.

Date: Monday, June 14, 2021
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-877-407-9039
International dial-in number: 1-201-689-8470
Conference ID: 13719885

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at www.concretepumpingholdings.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through July 5, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13719885 

About Concrete Pumping Holdings

Concrete Pumping Holdings is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan seeks to provide a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of April 30, 2021, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from approximately 30 locations, and route-based concrete waste management services from 16 locations in the U.S. and 1 shared location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Company’s brand websites at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.

ForwardLooking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “outlook” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance, including the Company's fiscal year 2021 outlook. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impacts on the Company related to the recent accounting restatement, material weakness in internal control over financial reporting and the assessment of complex accounting issues, as disclosed in the Company's From 10-K/A filed with the Securities and Exchange Commission (the "SEC") on June 11, 2021 (The "Amended 10-K"); the impacts of the COVID-19 pandemic and related economic conditions on the Company; the outcome of any legal proceedings or demand letters that may be instituted against or sent to the Company or its subsidiaries; the ability of the Company to grow and manage growth profitably and retain its key employees; the ability to complete targeted acquisitions and realize the expected benefits from recent acquisitions; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission, including the risk factors in the Company's latest Annual Report on Form 10-K, the Amended 10-K, and Quarterly Reports on Form 10-Q. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management also uses this non-GAAP financial measure to compare the Company’s performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and annual financial reports prepared for the Company’s board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Company’s ongoing operating results and in comparing the Company’s financial results with competitors who also present similar non-GAAP financial measures.

Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, loss on debt extinguishment, stock-based compensation, other income, net, and other adjustments. Adjusted EBITDA is not pro forma for acquisitions. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented. See below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP.

Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Company’s term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Company’s debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor the Company’s leverage and evaluate the Company’s consolidated balance sheet. See “Non-GAAP Measures (Reconciliation of Net Debt)” below for a reconciliation of Net Debt to amounts outstanding under debt agreements calculated in accordance with GAAP.

Free cash flow is defined as Adjusted EBITDA less net capital expenditures and cash paid for interest. This measure is not a substitute for cash flow from operations and does not represent the residual cash flow available for discretionary expenditures, since certain non-discretionary expenditures, such as debt servicing payments, are not deducted from the measure. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor and evaluate the cash flow yield of the business.

The financial statement tables that accompany this press release include a reconciliation of Adjusted EBITDA, net debt and free cash flow to the applicable most comparable U.S. GAAP financial measure. However, the Company has not reconciled the forward-looking Adjusted EBITDA guidance range and free cash flow range included in this press release to the most directly comparable forward-looking GAAP measures because this cannot be done without unreasonable effort due to the lack of predictability regarding the various reconciling items such as provision for income taxes and depreciation and amortization.

Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Company’s business. Other companies may calculate Adjusted EBITDA, net debt and free cash flow differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.

As a result of the business combination between our predecessor, Industrea Acquisition Corp., and the private operating company formerly called Concrete Pumping Holdings, Inc. (the “Business Combination”), the Company is the acquirer for accounting purposes and CPH is the acquiree and accounting predecessor. The Company’s financial statement presentation distinguishes the Company’s presentations into two distinct periods, the period up to the Business Combination closing date (labeled “Predecessor”) and the period including and after that date (labeled “Successor”). The Business Combination was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. As the underlying business and financial results of the Successor and Predecessor entities are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination, management has combined the fiscal year 2019 results of the Predecessor and Successor periods for comparability in certain tables below. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, the tables below present the non-GAAP combined results for the fiscal year 2019.

Contact:

Company:
Iain Humphries
Chief Financial Officer
1-303-289-7497
Investor Relations:
Gateway Investor Relations
Cody Slach
1-949-574-3860
BBCP@gatewayir.com  

Concrete Pumping Holdings, Inc.
Consolidated Balance Sheets

    April 30,     October 31,  
(in thousands, except per share amounts)   2021     2020  
ASSETS                
                 
Current assets:                
Cash and cash equivalents   $ 13,714     $ 6,736  
Trade receivables, net     41,800       44,343  
Inventory     4,555       4,630  
Income taxes receivable     352       1,602  
Prepaid expenses and other current assets     7,204       2,694  
Total current assets     67,625       60,005  
                 
Property, plant and equipment, net     304,865       304,254  
Intangible assets, net     171,213       183,839  
Goodwill     225,012       223,154  
Other non-current assets     712       1,753  
Deferred financing costs     2,088       753  
Total assets   $ 771,515     $ 773,758  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current liabilities:                
Revolving loan   $ 1,087     $ 1,741  
Term loans, current portion     -       20,888  
Current portion of capital lease obligations     100       97  
Accounts payable     6,622       6,587  
Accrued payroll and payroll expenses     10,838       13,065  
Accrued expenses and other current liabilities     21,618       18,879  
Income taxes payable     601       1,055  
Total current liabilities     40,866       62,312  
                 
Long term debt, net of discount for deferred financing costs     368,388       343,906  
Capital lease obligations, less current portion     330       380  
Deferred income taxes     65,618       68,019  
Warrant liabilities     18,485       7,031  
Total liabilities     493,687       481,648  
                 
                 
Zero-dividend convertible perpetual preferred stock, $0.0001 par value, 2,450,980 shares issued and outstanding as of April 30, 2021 and October 31, 2020     25,000       25,000  
                 
Stockholders' equity                
Common stock, $0.0001 par value, 500,000,000 shares authorized, 56,575,186 and 56,463,992 issued and outstanding as of April 30, 2021 and October 31, 2020, respectively     6       6  
Additional paid-in capital     371,703       367,681  
Treasury stock     (461 )     (131 )
Accumulated other comprehensive income     4,563       (606 )
(Accumulated deficit) retained earnings     (122,983 )     (99,840 )
Total stockholders' equity     252,828       267,110  
                 
Total liabilities and stockholders' equity   $ 771,515     $ 773,758  
                 

Concrete Pumping Holdings, Inc.
Consolidated Statements of Operations

    Three Months Ended     Six Months Ended  
(in thousands, except share and per share amounts)   April 30, 2021     April 30, 2020     April 30, 2021     April 30, 2020  
                                 
Revenue   $ 76,873     $ 74,041     $ 147,294     $ 147,980  
Cost of operations     43,570       42,174       84,128       83,965  
Gross profit     33,303       31,867       63,166       64,015  
Gross margin     43.3 %     43.0 %     42.9 %     43.3 %
                                 
General and administrative expenses     26,472       26,381       48,860       52,988  
Goodwill and intangibles impairment     -       57,944       -       57,944  
Transaction costs     55       -       84       -  
Income (loss) from operations     6,776       (52,458 )     14,222       (46,917 )
                                 
Interest expense, net     (6,029 )     (8,765 )     (12,929 )     (18,268 )
Loss on extinguishment of debt     -       -       (15,510 )     -  
Change in fair value of warrant liabilities     (11,456 )     3,254       (11,456 )     2,864  
Other income, net     26       34       52       103  
Loss before income taxes     (10,683 )     (57,935 )     (25,621 )     (62,218 )
                                 
Income tax expense (benefit)     170       (2,221 )     (2,478 )     (3,368 )
Net loss     (10,853 )     (55,714 )     (23,143 )     (58,850 )
                                 
Less preferred shares dividends     (499 )     (470 )     (1,006 )     (943 )
Less undistributed earnings allocated to preferred shares     -       -       -       -  
                                 
Loss available to common shareholders   $ (11,352 )   $ (56,184 )   $ (24,149 )   $ (59,793 )
                                 
Weighted average common shares outstanding                                
Basic     53,465,799       52,782,663       53,303,302       52,752,884  
Diluted     53,465,799       52,782,663       53,303,302       52,752,884  
                                 
Net (loss) income per common share                                
Basic   $ (0.21 )   $ (1.06 )   $ (0.45 )   $ (1.13 )
Diluted   $ (0.21 )   $ (1.06 )   $ (0.45 )   $ (1.13 )
                                 

Concrete Pumping Holdings, Inc.  
Consolidated Statements of Cash Flows

    Six Months Ended  
(in thousands, except per share amounts)   April 30, 2021     April 30, 2020  
                 
Net income (loss)   $ (23,143 )   $ (58,850 )
Adjustments to reconcile net income to net cash provided by operating activities:                
Goodwill and intangibles impairment     -       57,944  
Depreciation     13,991       13,015  
Deferred income taxes     (2,926 )     (3,515 )
Amortization of deferred financing costs     1,419       2,076  
Amortization of intangible assets     13,853       17,147  
Stock-based compensation expense     4,022       2,850  
Change in fair value of warrant liabilities     11,456       (2,864 )
Loss on extinguishment of debt     15,510       -  
Net (loss) gain on the sale of property, plant and equipment     (869 )     (477 )
Payment of contingent consideration in excess of amounts established in purchase accounting     -       (526 )
Net changes in operating assets and liabilities (net of acquisitions):                
Trade receivables, net     3,135       4,009  
Inventory     161       127  
Prepaid expenses and other current assets     (3,377 )     (5,209 )
Income taxes payable, net     750       301  
Accounts payable     (145 )     (101 )
Accrued payroll, accrued expenses and other current liabilities     2,359       1,060  
Net cash provided by operating activities     36,196       26,987  
                 
Cash flows from investing activities:                
Purchases of property, plant and equipment     (16,672 )     (23,305 )
Proceeds from sale of property, plant and equipment     3,687       3,607  
Net cash used in investing activities     (12,985 )     (19,698 )
                 
Cash flows from financing activities:                
Proceeds on long term debt     375,000       -  
Payments on long term debt     (381,206 )     (10,444 )
Proceeds on revolving loan     138,239       143,559  
Payments on revolving loan     (139,004 )     (127,404 )
Payment of debt issuance costs     (8,464 )     -  
Payments on capital lease obligations     (47 )     (45 )
Purchase of treasury stock     (330 )     (131 )
Payment of contingent consideration established in purchase accounting     -       (1,161 )
Net cash provided by (used in) financing activities     (15,812 )     4,374  
Effect of foreign currency exchange rate on cash     (421 )     (1,088 )
Net increase in cash and cash equivalents     6,978       10,575  
Cash and cash equivalents:                
Beginning of period     6,736       7,473  
End of period   $ 13,714     $ 18,048  
                 

Concrete Pumping Holdings, Inc.
Segment Revenue

    Three Months Ended     Change  
(in thousands)   April 30, 2021     April 30, 2020     $     %  
U.S. Concrete Pumping   $ 56,168     $ 57,459     $ (1,291 )     -2.2 %
U.K. Operations     11,853       8,401       3,452       41.1 %
U.S. Concrete Waste Management Services     9,008       8,306       702       8.5 %
Corporate     625       625       -       0.0 %
Intersegment     (781 )     (750 )     (31 )     4.1 %
    $ 76,873     $ 74,041     $ 2,832       3.8 %


    Six Months Ended     Change  
(in thousands)   April 30, 2021     April 30, 2020     $     %  
U.S. Concrete Pumping   $ 108,484     $ 112,564     $ (4,080 )     -3.6 %
U.K. Operations     21,633       19,086       2,547       13.3 %
U.S. Concrete Waste Management Services     17,430       16,589       841       5.1 %
Corporate     1,250       1,250       -       0.0 %
Intersegment     (1,503 )     (1,509 )     6       -0.4 %
    $ 147,294     $ 147,980     $ (686 )     -0.5 %
                                 

Concrete Pumping Holdings, Inc.
Segment Adjusted EBITDA and Net Income (Loss)

    Net Income (Loss)     Adjusted EBITDA  
    Three Months Ended     Three Months Ended                  
(in thousands, except percentages)   April 30, 2021     April 30, 2020     April 30, 2021     April 30, 2020     $ Change     % Change  
U.S. Concrete Pumping   $ (925 )   $ (44,303 )   $ 16,306     $ 16,319     $ (13 )     -0.1 %
U.K. Operations     402       (15,955 )     4,114       2,516       1,598       63.5 %
U.S. Concrete Waste Management Services     833       859       4,002       4,055       (53 )     -1.3 %
Corporate     (11,163 )     3,685       625       625       (0 )     0.0 %
    $ (10,853 )   $ (55,714 )   $ 25,047     $ 23,515     $ 1,532       6.5 %


    Net Income (Loss)     Adjusted EBITDA  
    Six Months Ended     Six Months Ended                  
(in thousands, except percentages)   April 30, 2021     April 30, 2020     April 30, 2021     April 30, 2020     $ Change     % Change  
U.S. Concrete Pumping   $ (13,602 )   $ (46,790 )   $ 31,592     $ 33,166     $ (1,574 )     -4.7 %
U.K. Operations     (129 )     (16,848 )     6,861       5,127       1,734       33.8 %
U.S. Concrete Waste Management Services     1,450       1,225       7,702       7,804       (102 )     -1.3 %
Corporate     (10,862 )     3,563       1,250       1,250       (0 )     0.0 %
    $ (23,143 )   $ (58,850 )   $ 47,405     $ 47,347     $ 58       0.1 %
                                                 

Concrete Pumping Holdings, Inc.
Quarterly Financial Performance

(dollars in millions)   Revenue     Net Income (Loss)1     Adjusted EBITDA2     Capital Expenditures     Adjusted EBITDA less Capital Expenditures  
                                         
Q1 2017   $ 46     $ (6 )   $ 14     $ 4     $ 9  
Q2 2017   $ 51     $ 3     $ 16     $ 3     $ 13  
Q3 2017   $ 55     $ 4     $ 18     $ 1     $ 18  
Q4 2017   $ 60     $ 1     $ 20     $ 14     $ 6  
Q1 2018   $ 53     $ 18     $ 16     $ 7     $ 9  
Q2 2018   $ 56     $ 5     $ 18     $ 1     $ 17  
Q3 2018   $ 66     $ 5     $ 22     $ 11     $ 11  
Q4 2018   $ 68     $ 1     $ 22     $ 9     $ 13  
Q1 2019   $ 58     $ (26 )   $ 17     $ 11     $ 6  
Q2 2019   $ 62     $ (10 )   $ 18     $ 13     $ 5  
Q3 2019   $ 79     $ 3     $ 31     $ 4     $ 27  
Q4 2019   $ 84     $ 1     $ 30     $ 5     $ 25  
Q1 2020   $ 74     $ (3 )   $ 24     $ 20     $ 4  
Q2 2020   $ 74     $ (59 )   $ 24     $ 4     $ 20  
Q3 2020   $ 77     $ 3     $ 30     $ 6     $ 24  
Q4 2020   $ 79     $ (2 )   $ 30     $ 6     $ 24  
Q1 2021   $ 70     $ (12 )   $ 22     $ 8     $ 15  
Q2 2021   $ 77     $ (11 )   $ 25     $ 5     $ 20  
                                         

1 The Company (1) restated its consolidated financial statements as of October 31, 2019, for the Successor period from December 6, 2018 through October 31, 2019 and the unaudited interim periods within that period and (2) revised its consolidated financial statements as of October 31, 2020, for the fiscal year then ended and the unaudited interim periods within fiscal 2020 to reflect the Company's warrants as liabilities. For further information, refer to the Company's 10-K/A filed on June 11, 2021 with the Securities and Exchange Commission.

2 Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a reconciliation of such measure to its most comparable GAAP measure.

Concrete Pumping Holdings, Inc.
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

  Predecessor  
(dollars in thousands) Q1 2017   Q2 2017   Q3 2017   Q4 2017   Q1 2018   Q2 2018   Q3 2018   Q4 2018   November 1,
2018
through
December 5,
2018
 
Consolidated                                                      
Net income (loss) $ (6,296 ) $ 2,556   $ 3,923   $ 730   $ 17,558   $ 4,610   $ 4,825   $ 1,389   $ (22,575 )
Interest expense, net   6,386     6,095     5,456     4,811     5,087     5,126     5,477     5,735     1,644  
Income tax expense (benefit)   646     592     1,822     697     (13,544 )   1,211     1,701     848     (4,192 )
Depreciation and amortization   6,229     5,919     6,390     8,616     6,110     6,293     6,150     7,070     2,713  
EBITDA   6,965     15,162     17,591     14,854     15,211     17,240     18,153     15,042     (22,410 )
Transaction expenses   5,304     -     (465 )   (349 )   8     1,117     1,395     5,070     14,167  
Loss on debt extinguishment   -     213     279     4,669     -     -     -     -     16,395  
Stock based compensation   -     -     -     -     93     94     94     -     -  
Other expense (income)   (39 )   (32 )   (19 )   (84 )   (12 )   (8 )   (14 )   (21 )   (6 )
Goodwill and intangibles impairment   -     -     -     -     -     -     -     -     -  
Other adjustments   1,172     1,108     1,051     985     1,324     (471 )   2,674     2,161     1,442  
Adjusted EBITDA $ 13,402   $ 16,451   $ 18,437   $ 20,075   $ 16,624   $ 17,972   $ 22,302   $ 22,252   $ 9,588  


  (As Restated)                                      
  Successor   S&P Combined (non-GAAP)   Successor  
(dollars in thousands) December 6, 2018
through
January 31,
2019
  Q1 2019   Q2 2019   Q3 2019   Q4 2019   Q1 2020   Q2 2020   Q3 2020   Q4 2020   Q1 2021   Q2 2021  
Consolidated                                                                  
Net income (loss)   (6,152 )   (28,727 )   (24,419 )   7,318     6,850     (3,137 )   (55,714 )   247     (2,648 ) $ (12,290 ) $ (10,853 )
Interest expense, net   5,592     7,236     9,318     9,843     10,127     9,503     8,765     8,364     7,777     6,900     6,029  
Income tax expense (benefit)   (2,765 )   (6,957 )   1,572     (1,922 )   (188 )   (1,147 )   (2,221 )   (462 )   (1,147 )   (2,648 )   170  
Depreciation and amortization   8,374     11,087     12,132     16,477     15,669     15,085     15,076     14,665     16,827     13,838     14,007  
EBITDA   5,049     (17,361 )   (1,397 )   31,716     32,458     20,304     (34,094 )   22,814     20,809     5,800     9,353  
Transaction expenses   -     14,167     1,282     176     63     -     -     -     -     29     55  
Loss on debt extinguishment   -     16,395     -     -     -     -     -     -     -     15,510     -  
Stock based compensation   -     -     361     1,625     1,633     1,467     1,383     1,357     7,247     672     3,350  
Change in fair value of warrant liabilities   2,522     2,522     14,774     (4,556 )   (6,249 )   391     (3,254 )   2,734     391     -     11,456  
Other expense (income)   (11 )   (17 )   (20 )   (28 )   12     (69 )   (33 )   (36 )   (31 )   (26 )   (26 )
Goodwill and intangibles impairment   -     -     -     -     -     -     57,944     -     -     -     -  
Other adjustments   -     1,442     3,234     1,627     1,635     1,741     1,569     3,169     1,498     373     859  
Adjusted EBITDA $ 7,560   $ 17,148   $ 18,234   $ 30,560   $ 29,552   $ 23,834   $ 23,515   $ 30,038   $ 29,914   $ 22,358   $ 25,047  
                                                                   

Note: The Company restated/revised its 2019/2020 financial statements. Further details discussed above.

Concrete Pumping Holdings, Inc.
Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

    Three Months Ended     Six Months Ended  
(dollars in thousands)   April 30, 2021     April 30, 2020     April 30, 2021     April 30, 2020  
Consolidated                                
Net income (loss)   $ (10,853 )   $ (55,714 )   $ (23,143 )   $ (58,850 )
Interest expense, net     6,029       8,765       12,929       18,268  
Income tax expense (benefit)     170       (2,221 )     (2,478 )     (3,368 )
Depreciation and amortization     14,007       15,076       27,844       30,162  
EBITDA     9,353       (34,094 )     15,152       (13,788 )
Transaction expenses     55       -       84       -  
Loss on debt extinguishment     -       -       15,510       -  
Stock based compensation     3,350       1,383       4,022       2,850  
Change in fair value of warrant liabilities     11,456       (3,254 )     11,456       (2,864 )
Other expense (income)     (26 )     (33 )     (52 )     (103 )
Goodwill and intangibles impairment     -       57,944       -       57,944  
Other adjustments     859       1,569       1,233       3,308  
Adjusted EBITDA   $ 25,047     $ 23,515     $ 47,405     $ 47,347  
                                 
U.S. Concrete Pumping                                
Net income (loss)   $ (925 )   $ (44,303 )   $ (13,602 )   $ (46,790 )
Interest expense, net     5,247       8,096       11,370       16,828  
Income tax expense (benefit)     (381 )     (2,751 )     (3,204 )     (4,138 )
Depreciation and amortization     9,405       10,144       18,677       20,148  
EBITDA     13,346       (28,814 )     13,241       (13,952 )
Transaction expenses     55       -       84       -  
Loss on debt extinguishment     -       -       15,510       -  
Stock based compensation     3,350       1,383       4,022       2,850  
Other expense (income)     (12 )     (7 )     (24 )     (17 )
Goodwill and intangibles impairment     -       43,500       -       43,500  
Other adjustments     (433 )     257       (1,241 )     785  
Adjusted EBITDA   $ 16,306     $ 16,319     $ 31,592     $ 33,166  
                                 
U.K. Operations                                
Net income (loss)   $ 402     $ (15,955 )   $ (129 )   $ (16,848 )
Interest expense, net     782       669       1,559       1,440  
Income tax expense (benefit)     79       509       (98 )     394  
Depreciation and amortization     2,071       2,065       4,081       4,261  
EBITDA     3,334       (12,712 )     5,413       (10,753 )
Transaction expenses     -       -       -       -  
Loss on debt extinguishment     -       -       -       -  
Stock based compensation     -       -       -       -  
Other expense (income)     (12 )     (26 )     (26 )     (86 )
Goodwill and intangibles impairment     -       14,444       -       14,444  
Other adjustments     792       810       1,474       1,522  
Adjusted EBITDA   $ 4,114     $ 2,516     $ 6,861     $ 5,127  
                                 
U.S. Concrete Waste Management Services                                
Net income (loss)   $ 833     $ 859     $ 1,450     $ 1,225  
Interest expense, net     -       -       -       -  
Income tax expense (benefit)     348       34       584       239  
Depreciation and amortization     2,323       2,660       4,670       5,339  
EBITDA     3,504       3,553       6,704       6,803  
Transaction expenses     -       -       -       -  
Loss on debt extinguishment     -       -       -       -  
Stock based compensation     -       -       -       -  
Other expense (income)     (2 )     -       (2 )     -  
Goodwill and intangibles impairment     -       -       -       -  
Other adjustments     500       502       1,000       1,001  
Adjusted EBITDA   $ 4,002     $ 4,055     $ 7,702     $ 7,804  
                                 
Corporate                                
Net income (loss)   $ (11,163 )   $ 3,685     $ (10,862 )   $ 3,563  
Interest expense, net     -       -       -       -  
Income tax expense (benefit)     124       (13 )     240       137  
Depreciation and amortization     208       207       416       414  
EBITDA     (10,831 )     3,879       (10,206 )     4,114  
Transaction expenses     -       -       -       -  
Loss on debt extinguishment     -       -       -       -  
Stock based compensation     -       -       -       -  
Change in fair value of warrant liabilities     11,456       (3,254 )     11,456       (2,864 )
Other expense (income)     -       -       -       -  
Goodwill and intangibles impairment     -       -       -       -  
Other adjustments     -       -       -       -  
Adjusted EBITDA   $ 625     $ 625     $ 1,250     $ 1,250  
                                 

Note: The Company revised its 2020 financial statements. Further details discussed above.

Concrete Pumping Holdings, Inc.
Reconciliation of Free Cash Flow

    Six Months Ended  
(dollars in millions)   April 30, 2021  
Adjusted EBITDA   $ 47.4  
Less net capital expenditures     (13.0 )
Less cash paid for interest     (5.9 )
Free cash flow   $ 28.5  
         

Concrete Pumping Holdings, Inc.
Reconciliation of Net Debt

(in thousands)   January 31,
2020
    April 30,
2020
    July 31,
2020
    October 31,
2020
    January 31,
2021
    April 30, 
2021
    Change in Net
Debt Q1'21 to Q2'21
 
Term loan outstanding     396,871       391,650       386,427       381,205       -       -       -  
Senior Notes     -       -       -       -       375,000       375,000       -  
Revolving loan draws outstanding     38,661       39,211       12,990       1,741       7,687       1,087       (6,600 )
Less: Cash     (2,636 )     (18,048 )     (4,131 )     (6,736 )     (2,273 )     (13,714 )     (11,441 )
Net debt     432,896       412,813       395,286       376,210       380,414       362,373       (18,041 )
                                                         

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Source: Concrete Pumping Holdings, Inc.