Flint Bautenschutz Q3 Report 2023

“Demand for our services remained strong in the third quarter with revenue of $187.0 million, representing a new quarterly record for the Company and an increase of 8.8% from the third quarter of 2022. The increase was due to strong demand for our maintenance, construction and environmental services, which more than offset lower revenues from wear technology overlay services and turnaround projects, which benefited in 2022 from a backlog due to the Covid-19 pandemic,” said Barry Card, Chief Executive Officer.

“We continue to progress our organic growth strategy that targets both industrial end market and geographic diversification. We recently opened an operating facility in Winnipeg as we continue to grow with our existing customers and pursue new customers across Canada. The commitment of our employees to deliver our services safely and with the utmost professionalism has been instrumental to our customer retention and attraction strategies,” added Mr. Card.

Highlights

• Revenue for the three months ended September 30, 2023 was $187.0 million, representing an increase of $15.1 million or 8.8% from the same period in 2022 and an increase of $18.5 million or 10.9% from the second quarter of 2023.
• Gross profit for the three months ended September 30, 2023 was $19.7 million, representing a decrease of $0.9 million or 4.3% from the same period in 2022 and an increase of $2.5 million or 14.4% from the second quarter of 2023.
• Gross profit margin for the three months ended September 30, 2023 was 10.6%, as compared to 12.0% in the same period in 2022 and 10.2% in the second quarter of 2023.
• Adjusted EBITDAS for the three months ended September 30, 2023 was $10.8 million, representing a decrease of $1.6 million or 12.8% from the same period in 2022 and an increase of $2.9 million or 36.8% from the second quarter of 2023.
• Adjusted EBITDAS margin was 5.8% for the three months ended September 30, 2023 representing a decrease of 1.4% from the same period in 2022 and an increase of 1.1% from the second quarter of 2023.
• Selling, general and administrative (“SG&A”) expenses for the three months ended September 30, 2023 were $9.0 million, representing a decrease of $0.9 million or 9.3% from the same period in 2022 and a decrease of $0.5 million or 5.5% from the second quarter of 2023. As a percentage of revenue, SG&A expenses for the three months ended September 30, 2023 were 4.8%, as compared to 5.8% in the same period in 2022 and 5.7% in the second quarter of 2023.
• Liquidity, including cash and available credit facilities, was $34.4 million at September 30, 2023, as compared to $37.0 million at December 31, 2022.