Southland Announces First Quarter 2025 Results
-
Revenue of
$239.5 million $288.1 million -
Gross profit of
$21.5 million $20.4 million -
Gross profit margin of
9.0% for the quarter ended March 31, 2025, compared to7.1% gross profit margin for the quarter ended March 31, 2024. -
Net loss attributable to stockholders of
$4.6 million $(0.08) $0.4 million $(0.01) -
EBITDA of
$10.1 million $10.9 million -
Backlog of
$2.47 billion
| (1) | Please refer to “Non-GAAP Measures” and reconciliations for our non-GAAP financial measures, including, “EBITDA” and “Backlog”. |
“We are off to a strong start in 2025, delivering improved margins and positive operating cash flow in the first quarter,” said Frank Renda, Southland’s President & Chief Executive Officer. “With strong demand across our markets and a robust pipeline of critical infrastructure opportunities, we are confident in our ability to drive long-term value for our clients and stakeholders.”
2025 First Quarter Results
Condensed Consolidated Statements of Operations |
|||||
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
March 31, 2025 |
|
March 31, 2024 |
||
Revenue |
$ |
239,486 |
|
$ |
288,097 |
Cost of construction |
|
218,006 |
|
|
267,676 |
Gross profit |
|
21,480 |
|
|
20,421 |
Selling, general, and administrative expenses |
|
16,465 |
|
|
14,394 |
Operating income |
|
5,015 |
|
|
6,027 |
Gain (loss) on investments, net |
|
17 |
|
|
(76) |
Other income, net |
|
743 |
|
|
536 |
Interest expense |
|
(8,874) |
|
|
(5,655) |
Earnings (losses) before income taxes |
|
(3,099) |
|
|
832 |
Income tax expense (benefit) |
|
(313) |
|
|
307 |
Net income (loss) |
|
(2,786) |
|
|
525 |
Net income attributable to noncontrolling interests |
|
1,766 |
|
|
931 |
Net loss attributable to Southland Stockholders |
$ |
(4,552) |
|
$ |
(406) |
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
Basic (1) |
$ |
(0.08) |
|
$ |
(0.01) |
Diluted (1) |
$ |
(0.08) |
|
$ |
(0.01) |
Weighted average shares outstanding |
|
|
|
|
|
Basic (1) |
|
53,961,744 |
|
|
47,925,072 |
Diluted (1) |
|
53,961,744 |
|
|
47,925,072 |
| ____________________ | |
| (1) | Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the three months ended March 31, 2025, and March 31, 2024, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented. |
Revenue for the three months ended March 31, 2025, was
Gross profit for the three months ended March 31, 2025, was
Selling, general, and administrative costs for the three months ended March 31, 2025, were
Segment Revenue |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
||||||||
(Amounts in thousands) |
|
March 31, 2025 |
|
March 31, 2024 |
|
||||||
|
|
|
|
|
% of Total |
|
|
|
|
% of Total |
|
Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
||
Civil |
|
$ |
102,916 |
|
43.0 |
% |
$ |
84,273 |
|
29.3 |
% |
Transportation |
|
|
136,570 |
|
57.0 |
% |
|
203,824 |
|
70.7 |
% |
Total revenue |
|
$ |
239,486 |
|
100.0 |
% |
$ |
288,097 |
|
100.0 |
% |
Segment Gross Profit (Loss) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
||||||||
(Amounts in thousands) |
|
March 31, 2025 |
|
March 31, 2024 |
|
||||||
|
|
|
|
% of Segment |
|
|
|
% of Segment |
|
||
Segment |
|
Gross Profit (Loss) |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
||
Civil |
|
$ |
22,631 |
|
22.0 |
% |
$ |
17,870 |
|
21.2 |
% |
Transportation |
|
|
(1,151) |
|
(0.8) |
% |
|
2,551 |
|
1.3 |
% |
Gross profit |
|
$ |
21,480 |
|
9.0 |
% |
$ |
20,421 |
|
7.1 |
% |
EBITDA Reconciliation |
||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
|
March 31, 2025 |
|
March 31, 2024 |
||
Net loss attributable to Southland Stockholders |
|
$ |
(4,552) |
|
$ |
(406) |
Depreciation and amortization |
|
|
6,525 |
|
|
5,577 |
Income tax expense (benefit) |
|
|
(313) |
|
|
307 |
Interest expense |
|
|
8,874 |
|
|
5,655 |
Interest income |
|
|
(450) |
|
|
(184) |
EBITDA |
|
|
10,084 |
|
|
10,949 |
Backlog |
||
|
|
|
(Amounts in thousands) |
|
|
Balance December 31, 2024 |
$ |
2,572,912 |
New contracts, change orders, and adjustments |
|
136,542 |
Less: contract revenue recognized in 2025 |
|
(239,486) |
Balance March 31, 2025 |
$ |
2,469,968 |
Condensed Consolidated Balance Sheets |
|||||
|
|
|
|
|
|
(Amounts in thousands, except share and per share data) |
As of |
||||
ASSETS |
March 31, 2025 |
|
December 31, 2024 |
||
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
65,052 |
|
$ |
72,185 |
Restricted cash |
|
16,064 |
|
|
15,376 |
Accounts receivable, net |
|
171,920 |
|
|
179,320 |
Retainage receivables |
|
111,179 |
|
|
112,264 |
Contract assets |
|
493,879 |
|
|
483,181 |
Other current assets |
|
26,860 |
|
|
19,326 |
Total current assets |
|
884,954 |
|
|
881,652 |
|
|
|
|
|
|
Property and equipment, net |
|
111,153 |
|
|
116,328 |
Right-of-use assets |
|
12,061 |
|
|
14,897 |
Investments - unconsolidated entities |
|
129,177 |
|
|
126,705 |
Investments - limited liability companies |
|
2,590 |
|
|
2,590 |
Investments - private equity |
|
2,685 |
|
|
2,699 |
Deferred tax asset |
|
56,061 |
|
|
54,531 |
Goodwill |
|
1,528 |
|
|
1,528 |
Intangible assets, net |
|
1,180 |
|
|
1,180 |
Other noncurrent assets |
|
1,540 |
|
|
1,539 |
Total noncurrent assets |
|
317,975 |
|
|
321,997 |
Total assets |
$ |
1,202,929 |
|
$ |
1,203,649 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
206,577 |
|
$ |
191,670 |
Retainage payable |
|
33,651 |
|
|
33,622 |
Accrued liabilities |
|
86,984 |
|
|
91,515 |
Current portion of long-term debt |
|
46,789 |
|
|
44,525 |
Short-term operating lease liabilities |
|
7,693 |
|
|
10,104 |
Contract liabilities |
|
256,594 |
|
|
249,706 |
Total current liabilities |
|
638,288 |
|
|
621,142 |
|
|
|
|
|
|
Long-term debt |
|
241,309 |
|
|
255,625 |
Long-term operating lease liabilities |
|
10,079 |
|
|
10,791 |
Deferred tax liabilities |
|
292 |
|
|
292 |
Financing obligations, net |
|
41,472 |
|
|
41,468 |
Long-term accrued liabilities |
|
58,075 |
|
|
58,075 |
Other noncurrent liabilities |
|
40,756 |
|
|
40,847 |
Total long-term liabilities |
|
391,983 |
|
|
407,098 |
Total liabilities |
|
1,030,271 |
|
|
1,028,240 |
|
|
|
|
|
|
Commitment and contingencies (Note 7) |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
5 |
|
|
5 |
Additional paid-in-capital |
|
292,526 |
|
|
292,173 |
Accumulated deficit |
|
(129,170) |
|
|
(124,618) |
Accumulated other comprehensive loss |
|
(4,231) |
|
|
(3,902) |
Total stockholders' equity |
|
159,130 |
|
|
163,658 |
Noncontrolling interest |
|
13,528 |
|
|
11,751 |
Total equity |
|
172,658 |
|
|
175,409 |
Total liabilities and equity |
$ |
1,202,929 |
|
$ |
1,203,649 |
Condensed Consolidated Statement of Cash Flows |
|||||
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
March 31, 2025 |
|
March 31, 2024 |
||
Cash flows from operating activities: |
|
|
|
|
|
Net income (loss) |
$ |
(2,786) |
|
$ |
525 |
Adjustments to reconcile net income (loss) to net cash used in operating activities |
|
|
|
|
|
Depreciation and amortization |
|
6,525 |
|
|
5,577 |
Deferred taxes |
|
(1,530) |
|
|
(642) |
Share based compensation |
|
464 |
|
|
677 |
Gain on sale of assets |
|
(1,028) |
|
|
(2,385) |
Foreign currency remeasurement (gain) loss |
|
(9) |
|
|
64 |
Earnings from equity method investments |
|
(2,688) |
|
|
(1,907) |
TZC investment present value accretion |
|
— |
|
|
(627) |
Loss (gain) on trading securities, net |
|
(17) |
|
|
76 |
Changes in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
8,565 |
|
|
(32,071) |
Contract assets |
|
(10,684) |
|
|
(16,175) |
Other current assets |
|
(7,534) |
|
|
5,450 |
Right-of-use assets |
|
2,836 |
|
|
1,994 |
Accounts payable and accrued liabilities |
|
10,352 |
|
|
40,059 |
Contract liabilities |
|
6,888 |
|
|
(8,162) |
Operating lease liabilities |
|
(2,846) |
|
|
(1,883) |
Other |
|
(79) |
|
|
(467) |
Net cash provided by (used in) operating activities |
|
6,429 |
|
|
(9,897) |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property and equipment |
|
(1,796) |
|
|
(3,128) |
Proceeds from sale of property and equipment |
|
2,882 |
|
|
2,657 |
Contributions to other investments |
|
— |
|
|
(13) |
Distributions from other investments |
|
31 |
|
|
52 |
Net cash provided by (used in) investing activities |
|
1,117 |
|
|
(432) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Borrowings on revolving credit facility |
|
— |
|
|
5,000 |
Borrowings on notes payable |
|
19 |
|
|
222 |
Payments on notes payable |
|
(13,593) |
|
|
(10,650) |
Payments of deferred financing costs |
|
(49) |
|
|
(75) |
Payments from related parties |
|
12 |
|
|
125 |
Payments on finance lease and financing obligations |
|
(267) |
|
|
(1,359) |
Payment of taxes related to net share settlement of RSUs |
|
(111) |
|
|
(206) |
Net cash used in financing activities |
|
(13,989) |
|
|
(6,943) |
|
|
|
|
|
|
Effect of exchange rate on cash |
|
(2) |
|
|
(31) |
|
|
|
|
|
|
Net decrease in cash and cash equivalents and restricted cash |
|
(6,445) |
|
|
(17,303) |
Beginning of period |
|
87,561 |
|
|
63,820 |
End of period |
$ |
81,116 |
|
$ |
46,517 |
|
|
|
|
|
|
Supplemental cash flow information |
|
|
|
|
|
Cash paid for income taxes |
$ |
409 |
|
$ |
454 |
Cash paid for interest |
$ |
8,934 |
|
$ |
5,527 |
Non-cash investing and financing activities: |
|
|
|
|
|
Lease assets obtained in exchange for new leases |
$ |
— |
|
$ |
1,252 |
Assets obtained in exchange for notes payable |
$ |
1,186 |
|
$ |
3,341 |
Related party payable exchanged for note payable |
$ |
— |
|
$ |
3,797 |
Conference
Southland will host a conference call at 10:00 a.m. Eastern Time on Wednesday, May 14, 2025. The call may be accessed here, or at www.southlandholdings.com. Following the conference call, a replay will be available on Southland’s website.
About Southland
Southland is a leading provider of specialized infrastructure construction services. With roots dating back to 1900, Southland and its subsidiaries form one of the largest infrastructure construction companies in
For more information, please visit Southland’s website at southlandholdings.com.
Non-GAAP Financial Measures
This press release includes certain unaudited financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including but not limited to earnings before interest, taxes, depreciation, and amortization (“EBITDA”), backlog, and certain ratios and other metrics derived therefrom. Note that other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Further, these non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. Southland believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Southland’s financial condition and results of operations. Southland also believes that these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which items of expense and income are excluded or included in determining these non-GAAP financial measures.
Please see the accompanying table for reconciliations of the following non-GAAP financial measures for Southland’s current and historical results: EBITDA (non-GAAP financial measures) to net income (loss) attributable to common stock.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Any forward-looking statement made by Southland in this press release is based only on information currently available to Southland and speaks only as of the date on which it is made. Southland undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250513926984/en/
Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com
Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com
Source: Southland Holdings, Inc.
