Q2 2024 Shimmick Corp Earnings Call Transcript
Key Points
- Shimmick Corp (SHIM) settled one of the two Legacy Loss Project claims for $33 million, improving liquidity and reducing legal distractions.
- The company secured a $14.5 million project for Delta Diablo cogeneration system replacement, reinforcing its focus on water-related projects.
- Shimmick Corp (SHIM) has a strong backlog of $922 million as of the end of the second quarter, indicating a robust pipeline of future work.
- More than 75% of Shimmick Corp (SHIM)'s work is generated from repeat customers, providing a predictable long-term flow of programs and projects.
- The company completed a significant $42 million project at the Richmond wastewater treatment plant, enhancing operational efficiency and reducing environmental impact.
- Shimmick Corp (SHIM) reported a net loss of $51 million for the second quarter, compared to a net loss of $10 million for the prior-year period.
- Second-quarter adjusted EBITDA was a loss of $40 million, significantly worse than the $2 million loss in the prior-year period.
- Legacy Projects continue to negatively impact financial performance, with a $23 million reduction in revenue and additional $7 million in gross margin adjustments.
- Gross margins for Shimmick projects declined to 5% for the quarter, down from 8% in the first quarter of 2023, due to schedule extensions, pending change orders, and increased costs.
- Legal fees related to Legacy Loss Projects amounted to $2 million for the quarter, adding to the company's financial burdens.
Greetings, and welcome to Shimmick's second-quarter 2024 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Anthony Rasmus, Investor Relations. Please go ahead.
Good morning, and thank you for joining us on today's conference call to discuss Shimmick's second-quarter 2024 results. Slides for today's presentation are available on the Investor Relations section of our website, www.shimmick.com. During this conference call, management will make forward-looking statements based on current expectations and assumptions which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect.
We identified the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission, which
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