Limbach Holdings, Inc.

Greetings and welcome to the Limbaugh Holdings second quarter 2023 earnings conference call and webcast. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If you would like to ask a question, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeremy Hellman of the Equity Group. Thank you. Please go ahead.

Thank you very much, and good morning, everyone. Yesterday, Limbach Holdings announced its second quarter 2023 results and filed its form 10-Q for the period ended June 30, 2023. The company would also like to note that an updated investor presentation is available in the investor section of the company website at www.limbachinc.com. Management will refer to select slides during today's call and encourages investors to review the presentation in its entirety. During this call, the company will be reviewing its financial results and providing an update on current market conditions. Today's discussion may contain forward-looking statements and actual results may differ from any forecasts, 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. Also, please note that during the question and answer session at the end of the call, we will only be taking questions from our analysts. With that, I'll turn the call over to Mike McCann, the President and Chief Executive Officer of Limbaugh Holdings. Please go ahead, Mike.

Good morning. Welcome, everyone, and thanks for joining us. Joining me this morning is Jamie Brooks, our Executive Vice President and Chief Financial Officer. During the second quarter, we continued to execute our strategy and produce improved quality of earnings. Our strategic plan continues to center on three primary value drivers. Each of which is capable of positive results, but when combined, they really provide a high growth pathway for our company. The first driver is our segment mix. We continue to aggressively shift our revenue mix towards a higher percentage of our work coming from our ODR segment. While our GCR segment continues to make solid progress in improving its margin profile, ODR continues to be our main focus through the improvement of margin profile, the more favorable risk profile, and the opportunity to strengthen relationships with long-term customers. By increasing the proportion of revenues attributed to ODR, there's a natural lift in our consolidated gross margin. In managing the business, we are constantly reinforcing this message to our local leadership. They should always be looking to deliver value to our customers while targeting high-quality work that provides for high margins rather than large projects, which typically sell at lower margins. Anytime they can achieve a gross margin of 29% instead of 17%, as was the case in our respective segments this quarter, they should pursue the 29% opportunity. That's really the biggest driver of our segment mix shift. The second driver is providing evolved offerings for our customers. We are intensely focused on the developing and delivering value-added solutions to our customers. We want to be their trusted partner for all the facility needs, especially when it comes to making proactive recommendations that enable them to drive long-term benefits and maximize the return on their physical asset investments. As we do that, we expect to earn higher margins in the work we do. The third driver is our strategic acquisition plan. We continue to pursue both tuck-in acquisitions to expand market share and relatively large acquisitions to bring Limbach into new geographies. Properly executed acquisitions allow us to scale the business, bolt on new service offerings, and better serve larger regional customers that want a single partner across their footprint. Following the quarter end, we announced the acquisition of Acme Industrial, which is based in Chattanooga, Tennessee, and is right down the road from our Jake Marshall subsidiary. ACRI brings us several new customer relationships. We are very excited about their leadership position in the hydroelectric end market, which includes Tennessee Valley Authority, or TVA, which is a large federally owned utility with significant hydroelectric assets. This represents a new end market for Limbach, and we're looking to leverage that positioning. Combined with Jake Marshall and Chattanooga, we've been able to tack on tuck-in acquisitions to the new geography and pick up additional market share. I'll now pass it off to Jamie to provide financial highlights, and then I'll return with a few final comments on market conditions before we take your questions. Jamie?