Q2 2024 K-Bro Linen Inc Earnings Call Transcript
Key Points
- K-Bro Linen Inc (KBRLF) reported record second quarter results with revenue of $93 million and adjusted EBITDA of $18.2 million.
- The company successfully completed two acquisitions, Shortridge in the UK and C.M. in Montreal, which are expected to enhance growth prospects.
- Consolidated revenue increased by 15.8% compared to Q2 2023, with significant growth in both healthcare (5.5%) and hospitality (28.9%) segments.
- The company maintains a strong balance sheet and liquidity position, with ample undrawn capacity on its credit facility.
- K-Bro Linen Inc (KBRLF) has a positive outlook for both healthcare and hospitality segments, with continued momentum and strategic acquisition opportunities.
- Net earnings decreased by 3.3% from $4.7 million in 2023 to $4.5 million in 2024, primarily due to increased depreciation and amortization.
- The EBITDA margin decreased slightly to 17.7% in 2024 from 18% in 2023, impacted by non-recurring transaction and financing costs.
- Wages and benefits increased by $4.2 million, reflecting higher costs associated with acquisitions and integration.
- Corporate costs rose by $1.5 million, driven by transaction costs related to acquisitions and credit facility syndication.
- The company anticipates continued one-time costs related to acquisition integration, which may affect short-term financial performance.
Good morning, ladies and gentlemen, and welcome to the K-Bro Linen Systems Inc., second quarter 2024 results conference call. (Operator Instructions) This call is being recorded on August 7, 2024. I would now like to turn the conference over to Kristie Plaquin. Please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining us today, and welcome to our second quarter results conference call. On the line with me today is Linda McCurdy, President and Chief Executive Officer. Following our remarks today, we will open it up for questions.
Before we begin, I'd like to remind everyone that statements made during our prepared remarks or in the question and answer portion of the conference call with reference to management's expectations or our predictions of the future are forward-looking statements.
All statements made today, which are not statements of historical fact are considered to be forward-looking statements and certain material factors or assumptions were
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