WARRENDALE, Pa. - Limbach Holdings, Inc. (NASDAQ:LMB), a provider of building systems solutions, has announced the appointment of David Gaboury to its Board of Directors, effective Thursday. The election of Mr. Gaboury expands the board to seven directors, with six serving independently.
David Gaboury, with a 40-year tenure in the engineering sector, is recognized for his leadership and expertise. His notable achievements include his role as CEO and President at Terracon, where he escalated annual revenue from $75 million to $750 million. Terracon also secured the 24th spot on the Engineering News-Record List of Top 500 Design Firms under his leadership. Mr. Gaboury's previous positions include COO and President at Woodward-Clyde Consultants and various board roles at professional and civic organizations.
The reshuffle follows the retirement of Norbert W. Young from the board after eight years. Joshua S. Horowitz, who joined the board in March 2020, has been named the new Chairman, taking over from Gordon G. Pratt. Mr. Pratt, having led since Limbach's public market debut in July 2016, will continue as Chairman Emeritus. Additionally, Linda G. Alvarado and Michael F. McNally have been appointed to lead the Nominating & Governance Committee and the Compensation Committee, respectively.
Joshua S. Horowitz, the newly appointed Chairman, expressed his enthusiasm for Mr. Gaboury's joining, highlighting the value of his leadership and operational experience to Limbach's strategy and growth.
Limbach Holdings specializes in mechanical, electrical, and plumbing services for mission-critical infrastructure in various sectors, including healthcare and data centers. The company boasts a workforce of over 1,300 across 19 offices in the eastern United States, emphasizing a fusion of engineering and field installation expertise.
This board expansion and leadership adjustment aim to capitalize on the diverse experience of its members, as the company continues to position itself as a key player in the building systems solutions market. The information for this article is based on a press release statement.
In other recent news, Limbach Holdings has reported its financial results for the first quarter of 2024, highlighting a significant strategic shift towards Owner Direct Relationships (ODR). This shift has resulted in increased margins and an impressive 18.5% growth in gross profit. The company's net income saw a substantial increase of 153.5%, aided by a $2.4 million tax benefit, and adjusted EBITDA rose by 35.4% to $11.8 million. The ODR segment, now representing 62.4% of total revenue, is a clear focus for the company, with plans to expand this segment and invest in new service offerings.
The company also reported a $4 million investment in portable HVAC rental equipment and a 77.5% increase in free cash flow to $11.8 million. Looking ahead, Limbach anticipates that ODR will represent 65% to 70% of total revenue for 2024. The company has also revised its adjusted EBITDA guidance upwards to between $51 million and $55 million for the year. These recent developments underscore Limbach Holdings' commitment to its strategic shift and growth trajectory.
InvestingPro Insights
Amidst the strategic board reshuffle at Limbach Holdings, Inc. (NASDAQ:LMB), the company's financial health and market performance offer key insights into its potential trajectory. With a solid Market Cap of $668.95 million, Limbach is positioned as a significant player in the building systems solutions sector. Investors may find the company's Price to Earnings (P/E) Ratio of 25.41 particularly intriguing, as it reflects a balance of value and growth potential, especially when considering the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at a slightly lower 24.37.
One of the standout InvestingPro Tips for Limbach is that the company holds more cash than debt on its balance sheet, indicating a strong financial position that could support future growth or help weather economic downturns. Additionally, the company's ability to trade at a low P/E ratio relative to near-term earnings growth suggests that it may be undervalued compared to its earnings potential, providing an attractive entry point for value investors.
Looking at recent performance metrics, Limbach has experienced a 1 Year Price Total Return of a remarkable 159.57%, demonstrating significant growth and rewarding investors handsomely. Furthermore, the company is trading near its 52-week high, at 98.81% of this peak value, signaling strong market confidence and momentum in its stock price.
For readers interested in deeper analysis and additional InvestingPro Tips, such as cash flow coverage of interest payments and the company's liquid assets in relation to short-term obligations, Limbach's dedicated page on InvestingPro offers a comprehensive view. Subscribers can access these insights and more, and by using the coupon code PRONEWS24, they can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 15 InvestingPro Tips available for Limbach, providing a wealth of information for informed investment decisions.
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