Limbach Holdings, Inc. (NASDAQ:LMB)

GB $LMB ($12.76) reported Q2 2017 results:

• Sales of $117.8 vs $96.6 million in the prior year and slightly below analyst estimates of $119.8 million

• Non-GAAP EPS of $0.10 vs $0.34 in the prior year and ahead of analyst estimates of $0.08

• Maintained FY 2017 sales guidance of $460 to $480 million with adjusted EBITDA of $18 to $20 million

Quotes from management:

“The second quarter of 2017 saw Limbach continue growing in excess of the broader non-residential construction market while a sharp uptick in backlog sets the stage for that growth to continue into 2018. Our Construction segment revenues were up 24.4% in the quarter versus last year’s period while our Service segment grew 11.9%. Our overall backlog is now over half a billion dollars, at $513.8 million, representing growth of 23.5% from March 31, 2017. That impressive growth gives us good confidence in achieving our financial objectives for 2017, while also giving us a nice head-start on 2018. We have also realized a 10% growth in margin within our backlog over the same period last year, which will lead to improving gross margin.”

LMB ($12.00) announced partial repurchase of preferred stock, management expects the repurchase to be accretive to net income.  Quotes from management:

“We are pleased to continue the process of reducing the Company's cost of capital in a manner that rewards our existing shareholders while also being accretive to Limbach's bottom line. Our ability to redeem a portion of the Preferred Stock at this time using lower-cost senior debt is an indication of our strengthening balance sheet and consistent operating performance. Furthermore, we retain the ability to pursue strategic M&A opportunities and fund long-term growth initiatives.”

LMBH ($11.83) - There’s a bullish article by Dane Capital Management at Seeking Alpha.  “Limbach: Near-Term Catalysts Should Close Valuation Gap”

On August 25, 2016 we offered our initial take on LMBH and encouraged you to read two bullish articles by Dane Capital discussing the recent developments and bullish thesis.  We stated we would look to establish a position. Via premium tweet later that day we initiated our position when the stock was trading at ~$8.90.