Flint Bautenschutz Q3 Report 2022

“The high level of activity that we experienced in the second quarter continued in the third quarter as we reported revenues of $171.9 million, largely unchanged from the record set in the second quarter. Revenues for both the three and nine month periods ended September 30, 2022 increased by 58% from the same periods in 2021 as the market recovery from the pandemic lows continued,” said Barry Card, Chief Executive Officer.

“In the third quarter, we successfully completed an additional 10 turnaround projects to build and maintain the integrity of our customers’ infrastructure. When combined with the second quarter, we completed a total of 30 turnaround projects. We were able to recruit and grow our workforce to over 4,000 employees at the peak, to complete these projects. The commitment of our employees to safety allowed these projects to be delivered on time and with no incidents, representing best in class performance,” added Mr. Card. 

Highlights

• Revenues for the three months ended September 30, 2022 were $171.9 million, representing an increase of $63.3 million or 58.2% from Q3 2021 and a decrease of $1.3 million or 0.8% from Q2 2022.
• Gross profit for the three months ended September 30, 2022 was $20.6 million, representing an increase of $8.5 million or 70.1% from Q3 2021 and an increase of $4.9 million or 31.3% from Q2 2022.
• Gross profit margin for the three months ended September 30, 2022 was 12.0%, as compared to 11.2% in Q3 2021 and 9.1% in Q2 2022.
• Adjusted EBITDAS for the three months ended September 30, 2022 were $12.4 million, representing an increase of $6.4 million or 107.3% from Q3 2021 and an increase of $4.5 million or 56.6% from Q2 2022.
• Adjusted EBITDAS margin for the three months ended September 30, 2022 was 7.2%, representing an increase of 1.7% from Q3 2021 and an increase of 2.6% from Q2 2022.
• Selling, general and administrative expenses for three months ended September 30, 2022 were $10.0 million, representing an increase of $2.7 million or 36.5% from Q3 2021 and an increase of $0.2 million or 1.8% from Q2 2022. The increase is largely due to our business recovering and stabilizing in 2022, therefore, certain elements of cost reductions in previous years have been reversed in order to support the increased volume of work in 2022. In addition, 2022 expenses are higher than 2021 due to ongoing investments being made to support the Company’s enterprise systems and digital strategy to drive longer-term efficiencies and increase our cost competitiveness.
• Liquidity, including cash and available credit facilities, was $21.6 million at September 30, 2022, as compared to $33.7 million at December 31, 2021.
• New contract awards and renewals totaled approximately $350.0 million for the three months ended September 30, 2022 and $12.0 million for the month of October 2022. Approximately 40% of the work is expected to be completed in the next 12 months.