On November 13, 2023, Southland Holdings Inc (SLND, Financial) released its 8-K filing, announcing financial results for the quarter ended September 30, 2023. The company, a leading provider of specialized infrastructure construction services, reported a decrease in revenue and gross profit compared to the same period last year, while maintaining a positive outlook for future infrastructure projects.
Financial Performance Overview
Southland Holdings Inc (SLND, Financial) experienced a decrease in revenue for Q3 2023, posting $312.5 million compared to $335.1 million in Q3 2022, marking a 6.8% decline. The company's gross profit also saw a significant decrease, with a 52.7% drop to $29.5 million from $62.4 million in the previous year. This resulted in a gross profit margin reduction from 18.6% to 9.5%. Net income attributable to Southland stockholders was reported at $3.8 million, a stark contrast to the $35.2 million recorded in Q3 2022.
Segment Performance and Backlog
The Civil segment of the business showed an increase in revenue, contributing 29.0% to the total revenue, up from 21.3% in the same quarter of the previous year. However, the Transportation segment, which makes up the majority of Southland's revenue at 71.0%, saw a decrease from the prior year's 78.7%. The company's backlog, which represents work to be completed, was not detailed in the earnings release.
Management Commentary
Frank Renda, President and CEO of Southland, commented on the results, stating,
This quarter’s results demonstrate positive contribution from recently awarded work in both our Civil and Transportation segments. While consolidated revenues declined this quarter compared to the same period last year, our core business delivered strong margins, offset by certain legacy projects as we work through completing lower margin backlog from prior years."He also expressed optimism about the future, citing the Infrastructure Investment and Jobs Act as a source of elevated bidding opportunities expected to continue into 2024.
Looking Ahead
Despite the challenges faced in the third quarter, Southland Holdings Inc (SLND, Financial) is poised to benefit from the ongoing allocation of funds for critical infrastructure projects across the country. The company's expertise and established presence in the infrastructure construction industry position it well to capitalize on these opportunities.
Southland Holdings Inc (SLND, Financial) will host a conference call to discuss the quarterly results and provide further insights into the company's performance and strategy moving forward.
For detailed financial information and reconciliations of non-GAAP financial measures, investors and interested parties are encouraged to review the full earnings release and financial statements.
Investors are reminded that the information provided in this release, including forward-looking statements, is subject to change and may not accurately predict future results or performance.
For more information, please visit Southland’s website or contact their corporate development and investor relations team.
Explore the complete 8-K earnings release (here) from Southland Holdings Inc for further details.
