Q1 2025 Limbach Holdings Inc Earnings Call
Jay Kegley: And Jay Kegley Woah, they're in the business whatever This'll be a little interesting
Jay Kegley: Good morning and welcome to the first quarter 2025 for the Limbach Holdings Inc. earnings conference called and webcast. Participants will be in listen only mode.
Jay Kegley: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. I will now turn the conference over to your host, Julie Kegley of Financial Profiles. You may begin.
Jay Kegley: Management rate referred to select slides during today's call and encourages investors to review the presentation in its entirety.
Speaker Change: on today's call, or Michael McCann, President and Chief Executive Officer, and Jamie Brooks, Executive Vice President and Chief Financial Officer. We will begin with prepared remarks and then open the call to questions.
Speaker Change: Before we begin, I would like to remind you that today's comments will include forward looking statements under federal security laws. Forward looking statements are identified by words such as will, be, intend, believe, expect, anticipate or other comparable words and phrases.
Speaker Change: Statements that are not historical facts, such as statements about expected financial performance are also forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements.
Speaker Change: A discussion of the factors that could cause a material difference in the company's results compared to these forward-looking statements. It's contained in Limbach's SEC
Speaker Change: Please note that on today's call we will be referring to non-GAAP measures . You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our first quarter 2025 earnings release and in our investor presentation, both of which can be found on Limbach's investor relations website and have been furnished in the form 8k followed with the SEC.
Speaker Change: With that, I will now turn the call over to President and CEO Mike McCann [inaudible]
Mike McCann: Good morning and welcome to our stockholders, analysts, and all interested investors. Thank you for joining us today. Limbach's entrusted partner for delivering mission-critical services that supported building
Mike McCann: We specialize in existing facilities by revitalizing and maintaining building systems to ensure the systems are formed when it matters most.
Mike McCann: When these systems don't function or don't function as intended, our customers are shut down or unable to meet commitments made to their own customers.
Mike McCann: We provide cost-effective, innovative and dependable services to keep our customers in business. Our unique audio model designed to withstand macroeconomic cycles and headwinds allows us to focus on executing our breast strategy.
Mike McCann: Working directly for Building Owners allows us to build long-standing relationships as we strive to be an indispensable partner by providing on-demand repair work and long-term solutions to keep facilities up and running.
Mike McCann: Since we implemented the Honor Direct Strategy five years ago, revenue from the ODR segment has increased from less than 21% of total revenue in 2019 to 66.6% of total revenue
Mike McCann: 67.9% in the first quarter of 2025, we reject to be between 70 and 80% for a full year 2025. This strategy is responsible for improving the company's risk profile, driving margin expansion and growing earnings.
Mike McCann: The progress we've made towards this shift continues to be reflected in our results.
Mike McCann: Compared to Q1 of 2024, Q1 2025 total revenue grow 11.9%, ODR revenue rose 21.7%, gross profit expanded by 18.1%, and adjusted even to increase 26.5%.
Mike McCann: Jayme will go into more detail on these numbers shortly, but we're proud of the continued momentum we built.
Mike McCann: to support continued ODR growth in the past year we've added approximately 40 new professionals to our sales organization, accounting for approximately one-third of the sales team.
Mike McCann: This investment is an important step and the getute evolution of our relationship with our customers.
Mike McCann: It's important that we understand our customers' facilities and anticipate the work needed to keep their critical facilities running to support their business.
Mike McCann: and that requires us to be present in front of decision makers consistently so that we can develop and maintain long-term reoccurring partnerships across operations, maintenance
Speaker Change: This video is educational and is not meant to replace proper medical or therapeutic treatment advice. Although EFK is widely used as a self help technique it is still in the experimental stages. Users should seek the advice of qualified physicians and health professionals regarding its use.
Mike McCann: In fact, the majority of our sales activity is focused on existing customers with large, established facilities that require ongoing maintenance upgrades and system optimization. We believe we currently hold only a small share of the total work needed to keep these complex operations running efficiently.
Mike McCann: Importantly, our growth is not dependent on the construction of new facilities, instead that is driven by the continuous needs of our longstanding clients.
Mike McCann: These relationships represent the most fertile, graph organic expansion. Our dedicated account teams are focusing on deepening them through exceptional service, responsiveness, and practical high impact solutions.
Mike McCann: We've experienced typical seasonality Q1, primarily from weather and annual budget
So we've gained many full momentum in March [inaudible]
Mike McCann: which is carried into the second quarter. We're capitalizing on the momentum as customers approved budgets. In our key markets, especially healthcare, begin to ramp up investment for over-gulant infrastructure upgrades.
Mike McCann: The second pillar of our transformation strategy is to expand customer offerings to the customer demand to pursue high margin opportunities.
Mike McCann: In Q1, we added an addition of 2 million to our climate control rental equipment sleep. The position ourselves to be the increased demand as temperatures rise.
Mike McCann: This is a key growth lever which was not completely operational in Q1 of last year and just one example how we are innovating beyond traditional offerings.
Mike McCann: The big initiative for 2025 is to transition our strategic customer relationships from a reactive to a proactive approach for the goal to help influence and co-author customer busics by the end of the year.
Mike McCann: This will allow us to strengthen our relationships and create more predictability for our sales pipeline. In order to achieve this objective, we're focused on collecting data from massive repair history, utility bills and facility assessments.
Mike McCann: which we can analyze and present back in solutions to our customers.
Mike McCann: To undertake this endeavour, each branch has identified their top customers based on specific criteria and has started the assessment process. Each one is at a different stage based on the customer relationship, but we've already started to see how these assessments can drive our relationships with our customers and impact our business.
Mike McCann: After completing assessment for a New England-based hospital, we provided them with a compelling case to replace both the HCC system and equipment that feeds their operating rooms.
Mike McCann: Once we resented the customer with the energy and asset repair savings, they proceeded with the replacement.
Mike McCann: Looking ahead, the opportunity collected analyze this data at scale represents a major inflection point for our business.
Mike McCann: As our data set grows, photos of their ability to surface patterns, benchmark performance and identify opportunities that would otherwise remain hidden.
Mike McCann: This capability not only positions us as a more strategic partner to our customers, but also as a potential creative, powerful competitive manage, the compounds over time.
Mike McCann: I'd also like to quickly address the uncertainty around tariffs. Tariffs have been a topic of conversation in the broader market, but their effect in our business has been so far neutral. What we are seeing is customers accelerating their purchasing decisions to lock in pricing due to ongoing tariff uncertainty.
Mike McCann: Our model, especially our ODR segment work, is built to respond quickly to market dynamics and avoid macroeconomic volatility.
Mike McCann: We perform quick heating work with most cost projects completed on a three or four-month timeline, giving us the ability to deliver consistent value even in times of uncertainty.
Mike McCann: This nimbleness and agility enables us to focus on the best solutions for our customers.
Mike McCann: gives us an advantage over traditional contracting models to focus a new construction that lock in pricing a time of bid. Contractors often wait months or even years to recover costs increases from materials.
Mike McCann: We've also seen interesting developments in the M&A market over the past nine months.
Mike McCann: For several years now, there's been significant consolidation in the broader mechanical services industry. Much of what's has been driven by private equity investors. That activity has been concentrated in less sophisticated, less technical, complex and markets.
Mike McCann: Those aren't general areas in which we're interested, but the increased activity overall has repercussions and has positively impacted our competitive position.
Mike McCann: We've been patient and disciplined, have remained focused on acquiring great businesses with great cultures. They're aligned with our focus on one or direct mission critical
Mike McCann: We believe we've been rewarded for that patience and discipline. We've also been working to further build out a brand of reputation, as fair, transparent, and dependable choirs of world-class contractors. We strive to become the ferd home for our staining family owned and operator of businesses.
Mike McCann: In recent months, we've seen evidence that our approach is delivering results and believe that we're developing and assessing opportunities are unavailable to out-of-cantabires.
Mike McCann: We see this trend continuing and are excited about the pipeline we built.
Mike McCann: We're making solid progress on recent acquisition integrations and exploring additional opportunities aligned with our core capabilities and expand our geographic footprint.
Mike McCann: We consistently work on our M&I pipeline to ensure ample time for due diligence and our well-positioned from a capital perspective.
Mike McCann: We're patient. We're going to be able to execute the right deals at the right time.
Mike McCann: We currently operate in approximately 20 metropolitan statistical areas, MSAs, with a well-established presence across core markets.
Mike McCann: Looking ahead, we have identified an additional 20 to 30 MSAs primarily along the east coast and throughout the Midwest that represent attractive expansion opportunities. Given our proven model and operational capabilities, we are well positioned to capitalize on these markets.
Mike McCann: We remain confident based on our current visibility to deliver our full-year guidance targets of 610 to 630 million in revenue and adjusted even in the range of 78 to 82 million. We're confident in our team's ability to deliver.
Mike McCann: In closing, we're off to a strong start this year, driven by our discipline strategy, operational execution and our relentless focus on serving our customers.
Mike McCann: Thank you for your continued support and confidence in Limbach Houldings. Now, we'll turn over to Jayme to walk through the financials.
Jayme Brooks: Thank you Mike, our Form 10-Q and Earnings Press release filed yesterday provide comprehensive details of our financial results, so I will focus on the highlights of the first quarter.
Jayme Brooks: All comparisons are 1st quarter 2025, 1st quarter 2024, and less otherwise noted
Jayme Brooks: In the first quarter, we generated total revenue of $133.1 million compared to $119 million in 2024.
Jayme Brooks: Total revenue growth was 11.9 percent while ODR revenue grew 21.7 percent and GCR revenue declined 4.5 percent. As we said, the GCR revenue decline is intentional as we execute our mixes strategy towards ODR.
Jayme Brooks: ODR Revenue, Accountant for 67.9% of total revenue for the first quarter up from 62.4% in Q1 2024.
Jayme Brooks: Total gross profit for the quarter increased 18.1% from 31.1 million to 36.7 million, reflecting our focus on growing our ODR segment.
Jayme Brooks: Total growth margin on a consolidated basis for the quarter was 27.6% up from 26.1% in 2024, driven by the combination of higher margin ODR revenue, higher quality GCR work, and contribution from acquisition.
Jayme Brooks: Odear Gross Profit comprised 71.2% of the total gross profit dollars or 26.2 million dollars.
Jayme Brooks: ODR grossed profit increased 4 million for 18% driven by higher revenues with ODR gross margins of 28.9%, slightly down from 29.8% in Q1 2024.
Jayme Brooks: The lower ODR gross margin percentage in Q1 2025 was primarily because of $2 million of gross profit write-ups in the ODR segment during Q1 2024.
Jayme Brooks: GCR growth profit increased 1.6 million or 18.3 percent due to our more selective approach to projects.
Jayme Brooks: Our focus on higher quality projects increased our GCR gross margins to 24.7% from 20% in the first quarter of last year.
Jayme Brooks: Sweeney expense for the first quarter was 26.5 million, an increase of approximately 3.6 million from 22.9 million.
Jayme Brooks: As a percentage of revenue, Sweeney expense was 19.9% up from 19.2% in the same period last year.
Jayme Brooks: This increase includes Sweeney associated with Kent Island in Consolidated Mechanical, which were not acquired entities of the company during the three months ended March 31, 2024.
Jayme Brooks: We expect Sweeney for 2025 to be in the target range of 18 to 19% of total revenue due to our ongoing investment in the growing of our ODR business.
Jayme Brooks: Adjusted EBITDA for the quarter was $14.9 million, up 26.5% from $11.8 million in Q1 2024.
Jayme Brooks: Net income for the quarter grew 34.6% from 7.6 million to a record of 10.2 million and earnings per diluted share grew 32.8% from 64 cents to 85 cents.
Jayme Brooks: Adjusted net income grew 38.9% from 9.7 million to 13.5 million, and adjusted earnings per diluted share grew 36.6% from 82 cents to $1.12.
Jayme Brooks: Trade to cashflow, our operating cash inflow during the first quarter was 2.2 million, compared to a 3.9 million operating cash outflow during the first quarter of last year, representing a 6.2 million dollar improvement.
Jayme Brooks: Three cash flow, defined as cash flow from operating activities, thus changes in the working capital and capital expenditures, excluding our investment in additional rental equipment for the first quarter with $15 million, compared to $11.8 million in Q1 last year, representing a $3.3 million improvement.
Jayme Brooks: For full year 2025, we are targeting a free cash flow conversion rate of at least 75% and expect CapEx to have a run rate of approximately $4 million, primarily due to the acceleration of our ODR strategy.
Jayme Brooks: This amount excludes an additional investment of 3.5 million in rental equipment for 2025 of which 2 million occurred in the first quarter.
Jayme Brooks: Turning to our balance sheet, as of March 31st, we had 38.1 million in cash and cash equivalent and total debt of 27.5 million, which includes 10 million borrowed on a revolving credit facility at a head rate of 5.72%.
Jayme Brooks: In addition, we will continue to utilize our balance sheet to support our strategy by providing the capital needed for opportunistic acquisitions and other gross initiatives.
Jayme Brooks: That concludes our prepared remarks. I'll now turn the call back to the operator to be in Q&A.
Speaker Change: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate a line is in the question queue. You may press star 2 to remove yourself from the queue for participants using speaker equipment and may be necessary to pick up their hands at me for pressing these star keys.
One moment please while we poke for questions.
Speaker Change: Our first question comes from the line. The line of Rob Brown with Lake Street Capital. Please for see with your question.
Good morning, congratulations on this quarter.
Good morning, Rob.
Speaker Change: I'm the healthcare market. You talked about some kind of rebound there in recovery and activity. Could you just go as a sense of where that market's been and how you see it trending?
Yeah, so...
You know the healthcare of your healthcare.
Speaker Change: Vertical Markets, definitely been our key vertical markets that we really focus on, I would say not just this year, but the past few years. What we like about it is...
Speaker Change: The relative stability from that perspective. There's been a lot of deferred maintenance that's really happened over the last four or five years, I think coming out of 2020 and 2021.
Speaker Change: So, a lot of times hospital get to the point where that deferred maintenance needs to be dealt with and they no longer are in the quick prepare mode and they need to
Nick Plans on their long-term capital planning for that perspective. So I think going to this year...
Um...
Speaker Change: We've definitely start to see some of our key customers realize like I really need to start planning in the future because I'm building up a short term expense so we expect you know it to be a slow ramp up but we like this ability and we've really embedded ourselves in our strategy really works well in that vertical market.
Speaker Change: Great. Thank you. You talked a little bit about some pull forward on projects as customers looked at maybe tariff risk, but how do you see that? How much of it you think was pulled forward and I guess what's the risk on kind of...
Equipment Price is with her [inaudible]
Thank you for joining us at this time.
Speaker Change: Yeah, so I think the one thing we definitely appreciate this year is going it's a lot tougher to sell in our model like every other set like a location has one or two projects that make up all of their their revenue for the year.
So...
Speaker Change: A lot tougher from that perspective, but I think the thing that really helps us is we do have things that pop up that are, you know, tariffs or even I think of other items that are macroeconomic related, our ability to be nimble and quick.
Speaker Change: in past costs along with something that I think is beneficial, even though tariffs essentially have been neutral to us. What I think we've seen from customers is the need to make the decision.
Speaker Change: Um, they can't wait two or three months later because first up our price won't be valid at that point, but secondly um
Speaker Change: You know, things could change in the, you know, the dynamics could change, the price and good change. So I think that's one thing that we've really tried to stress to our customers is I'm giving you some, I'm giving you a proposal, you need to act quickly on it, you need to make sure that you're ready to get funded or not.
Speaker Change: and I think that's the real conversation we've had a lot of our customers and I think it's a good conversation because it allows us to be as proactive as possible.
and to make sure that there's no surprises between either.
Speaker Change: Either, but definitely the quick getting nature of our work I think allows us to have those conversations with our customers and not be caught up in super long term projects where it's tough to to deal with you know drastic material increases. Thank you.
Great, thank you. I'll turn it over.
Speaker Change: Thank you. Our next question comes from a line of Chris Moore with CJS Securities. Please receive with your question.
Chris Moore: Hey, good morning guys, thanks for taking a couple. So, maybe I'll focus on ODR to begin with. So, obviously the goals generate more and more revenue from an ODR client.
Speaker Change: Only a portion of the ODO clients evolved to the point where they're kind of more of that partner and their relationship.
Speaker Change: you know, involves from just dot-backs to include things like cat-back. So...
Speaker Change: May be a few questions here, I'm just trying to understand when does an account manager get placed at an ODR client when you're still trying to determine if the customer could be a long-term partner or after you come to the conclusion that that long-term opportunity is actually there.
Speaker Change: Yeah, so we've learned a lot, I would say the last few years, just because it's a building with a lot of square footages at the hospital doesn't necessarily mean that that account is positioned too.
to accept that on-site account manager, so we definitely research.
Speaker Change: for the facility. What's the spending patterns? What's the opportunity? Not just what we've done short-term but we've done long-term. We have a sales rep that makes sure that we have traction. So we're not putting an onsite account manager where we haven't seen revenue over us profit ultimately fall through. So it's a combination of
Speaker Change: getting traction and also doing our homework and realizing that that account can accept that type of attention. So those are really two things that we've learned that have been important for success.
Speaker Change: Got it, and is there any way to kind of put some kind of percentage around, just trying to understand?
You know, how many Odeer Clients you work with?
Speaker Change: Now and, you know, what percentage of those are at that stage where you have realized, that you know, this is kind of partnership material.
Speaker Change: Yeah, so each brand we really ask them to focus on really five core strategic customers.
Thank you. Thank you.
Speaker Change: You know, some branches have 5 bits of that up, some of them have 2 or 3, so usually they're in some pattern about that as well too. I think the other thing too that we had in our...
Speaker Change: Our deck was kind of this relationship between a local and national perspective, so...
Speaker Change: Our goal over time is to connect the dots, and that's where I really feel like it's a big opportunity.
Just as an example, one of our...
Speaker Change: Our customers is a national health care provider. We work with them at three locations Ohio Philadelphia and in. [inaudible]
Speaker Change: and in South Florida. We've been working from an off-ex perspective, somewhat from a cat-ex perspective, but we're now starting to connect the dots together, so we can take a local relationship.
Speaker Change: and turn that into a national relationship. And I think that's where we're going to see again continue to acceleration. So each great to focus on their their top five. There's some
Speaker Change: Rayn to that, but there's also, I think, an added opportunity even once we gain some level penetration from that perspective, also we'll get it from a national perspective as well, too. So back to your other question, we really carefully picked these accounts.
Speaker Change: We're very, we work together to make sure that it's not just going to be a local impact but have to be a national impact to be of a greater scale as well too.
Speaker Change: Very helpful. Maybe just the last one for me. The GCR goes smart and...
Speaker Change: was certainly higher than I was modeling, 24.7 versus 20% year-to-year, said that was, you know, kind of more selective projects, given the current environment, lots of uncertainty.
Speaker Change: is how likely or how difficult is it to keep the gross margin on GCR above 20% say over the next year or so?
Speaker Change: Yeah, we're continuing to guide the 28 to 29 percent blended between the two, so depending on the quarters, there may be certain projects that finish or not.
Um...
Jayme Brooks: It's just, it depends on the mix. Do you have anything you want to add? Yeah, it's really going to be mixed within that specific quarter. So really, yeah, the target of Mike said is 28 to 29 percent blended for growth for the full year because there really can be the ebb and flow of that margin depending on the mix within any quarter.
You got it, that's helpful guys, I'll jump back in line [inaudible]
Thank you Chris. Thank you.
[inaudible]
Speaker Change: Thank you. Our next question comes from the line of Jerry Sweeney with Roth Capital Partners LLC. Please receive with your question.
Good morning, Jayme and Mike. Thanks for taking my call.
Morning.
Speaker Change: Thank you. Congratulations on the correct order. Mike, I think you highlighted 40 new sales
Speaker Change: I apologize, maybe out of the course of last year or in the last couple quarters, that sounds
Speaker Change: and I want to double check. Sounded like it was about a 30% increase in the sales side, but secondarily, I was wondering if you could give a little bit more detail on, you know, are there salespeople, account managers, and how do you look at them ramping up and sort of hitting their full stride on the sales opportunity post tiring?
Speaker Change: Yep, so it's about 40. It's about a third of our sales staff. So the last couple of years we've added, you know, somewhere in the ballpark of that number. So you circle back to like 2021 and 22. We didn't have a lot of sales people.
Speaker Change: It was a very different model. So every year, and I think in some sense, this is why our S.GNA has an elevator status. We have to continue to invest. Those sales reps and on-site account manager are critically important to make sure that we grow our owner direct.
and then there's also account execs as well too.
Speaker Change: which are new that we've hired this year and their goal is to really penetrate from a cap-ex perspective. So take that on the relationship that the on-set account manager is built on the app website.
Speaker Change: and as well, really positioned to make sure that we're capturing from a capital, CapEx perspective as well too, but of course there's a bit of a ramp-up period for each one of these. A lot of it depends on what accounts they are.
Speaker Change: It depends the role that they're playing, but in some sense it's a similar pattern that we've had the last couple of years.
Speaker Change: and then speaking about connecting the dots on your geographic strategy, following some of your larger account to maybe additional MSAs.
to jumpstart things in that new area.
Speaker Change: Yeah, so there are just a couple different, couple different ways that we would attack it. So we do have some relationships, especially on the National Health Care side and we will do work.
Speaker Change: Outside of a branch location, a lot of times that they program management type deal who are managing a capital program for them. So we don't necessarily have boots in the ground.
Speaker Change: But the real opportunity for us is, just as what you said, if we really make sure from an account perspective, we looked at to see what that kind of overlap there is. These national customers, what's the brass and footprint?
if we do buy a company.
Speaker Change: and we have boots on the ground. Now here's an opportunity, not just to buy a great company but also to leverage these national relationships as well, too. So just bring...
Speaker Change: from our map perspective. There's lots of light space on there.
Speaker Change: And then we are always kind of overlapping some of our national customers as well too so we can buy a company and then we can give them some acceleration from a revenue perspective from a national account as well too. That's really I think we get a great benefit out of it.
Thank you.
What about
Speaker Change: Taking a side following new customers looking at there's 20 to 30 MSAs that I think I don't my worst at yours targeted.
Speaker Change: How would you enter into those markets separately? I mean, acquisition or would you ever look at going into any market from an organic standpoint?
Speaker Change: We've done organic starts before. There's an example South Florida was an organic start. A lot of it becomes down to making sure that
We have the red leader, we have the right team [inaudible]
Speaker Change: So occasionally we will do that. I would say the majority of what we do will come from an acquisition as well too because that really accelerates it so we're going to go from a you know a new start perspective. It's it really takes time and we've learned from that so I would say for the majority of us 20 to 30 MSAs it.
Speaker Change: We referenced in the prepared remarks a lot of those will come from an acquisition perspective we just get the scale on the resources and it really lets us to get done pretty a lot quicker.
I appreciate it. I'll jump back in queue. Thanks, guys.
Thank you.
Thank you. Thank you. Thank you.
[inaudible]
Thank you.
Speaker Change: Our next question comes from the line of Brian Brophy with Steve Foo. Please proceed with your question.
Thanks, good morning everybody, congrats on a nice quarter.
Thank you. Good morning. Good morning.
Speaker Change: Good morning. So you called out an acceleration in March in your comments. Can you talk about the significance of that? Was that acceleration more than seasonally normal this year and just any more color on how that continued into April ? Thanks.
Yeah, so
Speaker Change: You know, as we've referenced before, there's definitely seasonality too and I think there's a couple things that kind of results in that one is...
us every year.
Speaker Change: We've had a greater owner direct mix this year, we continue to have that so that's...
Speaker Change: that always leads us to having revenue bills throughout the year.
Speaker Change: I think, you know, March was really helped us from that perspective, you know, and I think part of it seasonality, part of it's the sales reps that we have and account managers that we brought on. It's really a combination of those two together, but you know, as always we expect there to be a ramp off throughout the year.
Speaker Change: Maybe this is related. There's been some discussion from some of the HVAC OEMs and distributors regarding some of the disruption early this year to refer during change out. Care is your perspective on that, and if you saw any impact from that at all this year, thanks.
Speaker Change: Yeah, we have, it depends on what the equipment, what the project is.
Speaker Change: That is a reason I think for somebody to make a decision, so it's typically been of help to us.
Speaker Change: So a lot of times, too, it just depends from a customer perspective. Are they in this?
Speaker Change: Do they have a reason to make that ultimate equipment repair? So it could be from different rich, refrigerant changes. It could just be in their cycle.
Speaker Change: A lot of times from a customer perspective, it's just a matter of one of the half depth of big enough built from an op-ex perspective, along with a number of other factors which may be things like refrigerant switchouts that says, finally we need to make a decision.
Speaker Change: So, you know, at the decision point, I would say more or less from our customer perspective.
Okay.
Speaker Change: And then one more for me wanted to kind of follow up on some of your comments on private equity competition on the M&A side. I think historically that you've talked about doing two to three deals, tucking deals a year. Is that still a good way to kind of think about the M&A cadence or given the competitiveness on the M&A side. Maybe you're thinking something different today. Thanks. Thank you.
Speaker Change: Yeah, no, so we're looking to buy 8 to 10 million dollars in adjusted EBITDA, so it's interesting from a private equity perspective.
Speaker Change: Um, I think what that does is ultimately really shows people that are selling their business just a differentiation between maybe going down that route versus the Limbach route. So I think the saturation in the market is allowed.
I'll have to differentiate ourselves.
Speaker Change: And I think what it really comes down to is our approach is just different. We're going to patient diligent.
Speaker Change: We're going to take our time. We're really focused not on just the deal itself, but what the deal is going to look like over the long term. And then how can we still fit them into our mold? Get them on our comic strategic platform. And then how can we still fit them into our comic strategic platform.
Speaker Change: It's a big differentiator for us and we definitely feel like we're a unique option and in some sense I think it's opened up doors where maybe it wouldn't have if we had more of a common approach from an acquisition perspective.
Speaker Change: Yeah, that's really helpful. I will pass it on. Thank you.
Thank you.
Robert Brown, Michael McCann, Julie Kegley, Limbach Hldg
Speaker Change: Thank you, and we have reached the end of the question and answer session. I would like to turn the floor back to Mike McCann for a close remarks.
Mike McCann: Thanks for listening today for your contued interest in Limbach. We look forward to seeing many of you at the Oppenheimer Virtual Industrial Conference on May 8th, the Bank of America Industrial Conference in New York on May 14th and the Stevo Press.
Speaker Change: Sector Conference in Boston, on June 3rd and 4th. Have a great rest of your day. Thank you.
Speaker Change: And this concludes this conference. You made this connection line at this time. Thank you for your participation.
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