Limbach Holdings, Inc.

Greetings and welcome to the Limbach Holdings first quarter 2022 earnings. At this time, all participants are in a listen-only mode. A question and answer session will follow a formal presentation. To ask a question, please press star 1 on your telephone keypad. You can press star 2 to remove yourself from the queue. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. Please note that this call is being recorded. I will now turn the conference over to our host, Jeremy Hellman of the Equity Group. Thank you. You may begin.

Thank you very much and good morning, everyone. Yesterday, Limbach Holdings announced its first quarter 2022 results and filed its form 10Q for the quarter end of March 31st, 2022. During this call, the company will be reviewing those results and providing an update on current market conditions. Today's discussion may contain poor-looking statements and actual results may differ from any forecast projections or similar statements made during the earnings call. Listeners are reminded to review the company's annual report on Form 10-K and quarterly reports on Form 10-Q for risk factors that may cause the actual results to differ from forward-looking statements made during the earnings call. With that, I'll turn the call over to Charlie Bacon, the President and Chief Executive Officer of Lindbach Holdings.

Good morning and welcome, everyone, and thanks for joining us. Joining me today is our Chief Financial Officer, Jamie Brooks, and our Chief Operating Officer, Michael McCann. Matt Katz, our Executive Vice President of Acquisitions and Capital Markets, had a late personal conflict and won't join us for the call this morning. He will be available later today and this week if there are any follow-up questions. I'll be covering our business highlights and business conditions and will provide our financial guidance for 2022. Jamie and Mike will discuss our financial and operating results. I will also provide an update on the continued integration of Jake Marshall and discuss the current acquisition environment and pipeline. We have many employees joining us for these calls, and I want to start off by thanking them. Collectively, we've worked our way through the past two COVID-impacted years while improving our operations across the board. From our strategy of moving to higher-margin ODR services to improving our GCR execution, I want to recognize all of you for an incredible effort. All of this has been occurring while we uphold our We Care core value, which led to another period of terrific safety performance. We closed out 2021 in a strong fashion, highlighted by solid execution, which we saw us deliver our financial guidance that we provided earlier in the year. That marked two years of achieving our financial goals, all while successfully executing a transformational strategic change in our business and dealing with the impacts of the pandemic. We firmly believe that the results of the last two years confirm the validity of the strategic shift to ODR and our ability to successfully execute on that plan. Plain and simple, the ODR business has more predictable revenue, higher margins, and less risk of execution. As such, a business that fits this profile should trade at much higher multiples of revenue and cash flow than a GCR-focused business. Quarter-to-quarter results will reflect the volatility that is characteristic to our industry, but we firmly believe that the long-term trend of moving to the owner-direct model while improving GCR execution will continue to improve results. On our last call, we also noted that we expected 2022 to be similar to 2021 with a decidedly stronger second half, and that continues to be our expectation. On guidance for the year, we currently expect revenue to be in the range of $510 million to $540 million, and adjusted EBITDA to be in the range of $25 million to $29 million. Our goal is to close on at least one acquisition this year. However, this 22 guidance does not include the financial impact of that transaction, since the timing of any acquisition within the calendar year is uncertain. Before I hand the call off to Jamie and Mike to address finance and operations, I want to touch on the general economic picture impacting the business. We think the demand picture in our primary market sectors remains positive. Based on the recent FMI second quarter outlook, along with the American Institute of Architects Billing Index report, and what we're seeing on the ground, healthcare is forecasted for steady expenditures, but there could be a shift of capital from greenfield construction to retrofitting facilities due to rising utility costs, which should be positive for us. Data center spend is expected to accelerate, and we are continuing to enjoy a solid relationship with one of the major data center operators. Our Boston area operation is seeing good levels of research and development facility demand from the biotech and pharmaceutical industry. We also have greater opportunities in manufacturing and the industrial sector through the acquisition of Jake Marshall, and we expect there to be a steady increase in activity alongside on-shoring of manufacturing investment. In the near term, tight supply chains appear to be driving more building owners to devote capital to maintaining the uptime of existing assets. That's positive for our ODR business, especially with our T&M work, which is a small but growing part of our business. We realized a 46.8% improvement over the same quarter of last year with these T&M services. We expect that trend to continue while the supply chain issues delay equipment replacements. While we've been impacted by supply chain driven equipment delays, these high margin T&M services offset some of the equipment delay impacts. As I've stated in the past, Our services are essential. Humans need what we do. Heat, air conditioning, water, power, and building automation that control the environments we create. We are diverse. We have built a diverse business allowing us to shift assets to where the opportunities exist from sectors to geographies. We move where the business opportunities are present. The pandemic response back in 2020 and how we executed is great proof of that. Finally, we continue to evolve. We keep evolving the business, which has supported 120 plus years of operation. And right now we're indicating that to our ODR transformation, as well as a digital strategy. In the context of all these trends and how we operate the business, Lombok is well positioned and we expect to see improving operating results. With that, I'll hand it off to Jamie.