GlobeNewswire Inc | Sep 9, 2020 04:05PM EDT

September 09, 2020

DENVER, Sept. 09, 2020 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the Company or CPH), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for its third fiscal quarter ended July 31, 2020.

Third Quarter Fiscal Year 2020 Summary vs. Third Quarter of Fiscal Year 2019 (where applicable)

-- Revenue was $77.1 million compared to $78.7 million. -- Gross margin was 49.0% compared to 49.6%. -- Net income available to common shareholders was $2.5 million or $0.04 per diluted share, compared to $2.3 million or $0.05 per diluted share. -- Adjusted EBITDA1 was $30.0 million compared to $30.6 million with Adjusted EBITDA margin remaining at 38.9%. -- Net debt2 of $395.3 million and total available liquidity of $43.5 million as of July 31, 2020.

Management Commentary

As our third quarter results demonstrate, we continue to navigate the evolving impacts of COVID-19 from a position of strength, which is a testament to our great employees, the resiliency of our business model and our highly variable cost structure, said Bruce Young, CEO of CPH. Despite some softness in a few of our markets caused by COVID-19, we kept revenue and Adjusted EBITDA essentially flat, while continuing to grow our concrete waste management services business by double-digits. Our team is very proud of this robust performance during an obviously challenging macro environment.

In addition, our 38.9% Adjusted EBITDA margin remained strong and was driven by our experienced team's ability to control the roughly 70% variable nature of our cost structure, as well as the proactive measures we took across the organization to rationalize expenses. This was accomplished while continuing to strengthen our balance sheet. We reduced net debt by $17.5 million during the third quarter and had access to $43.5 million of total liquidity at the end of the third quarter. Our healthy operating cash flow and no near-term debt maturities has us continuing to feel comfortable with our liquidity during these uncertain times.

We remain cautiously optimistic about the demand environment for the remainder of our fiscal year. Our diversified revenue exposure creates opportunities for growth, particularly in areas where were currently experiencing incremental market share gains, like concrete waste management and residential construction. We look forward to our continued execution in these areas of opportunity while appropriately balancing debt paydown with investment opportunities that support the long-term growth of the business.

Third Quarter Fiscal Year 2020 Financial Results

Revenue in the third quarter of fiscal year 2020 was $77.1 million compared to $78.6 million in the third quarter of fiscal year 2019. The slight decline was due to lower revenue in the U.K. Operations segment as a result of the continued lingering effect of COVID-19, which drove substantial curtailment of business operations during April and into May. This was mostly offset by 18% growth in the U.S. Concrete Waste Management Services segment.

Gross profit in the third quarter of fiscal year 2020 was $37.8 million compared to $39.0 million in the year-ago quarter. Gross margin was 49.0% compared to 49.6% in the year-ago quarter. The small decline in gross margin was primarily driven by the U.K. Operations segment, which realized lower gross margin as a result of the continuing impacts from COVID-19.

General and administrative expenses in the third quarter of fiscal year 2020 declined to $27.0 million compared to $28.2 million in the year-ago quarter. The primary driver of the decrease year-over-year is due to lower amortization of intangible assets expense.

Net income available to common shareholders in the third quarter of fiscal year 2020 was $2.5 million or $0.04 per diluted share, compared to net income of $2.3 million or $0.05 per diluted share in the third quarter of fiscal year 2019.

Adjusted EBITDA in the third quarter of fiscal year 2020 was $30.0 million compared to $30.6 million in the year-ago quarter. Adjusted EBITDA margin remained consistent at 38.9% compared to the year-ago quarter.

Liquidity

At July 31, 2020, the Company had net debt of $395.3 million and total available liquidity of $43.5 million. Net debt improved by $17.5 million from the end of the second quarter of fiscal 2020.

Segment Results

U.S. Concrete Pumping. Revenue in the third fiscal quarter increased slightly to $58.6 million compared to $58.4 million in the year-ago quarter. Modest organic growth in many of our markets was mostly offset by COVID-19 driven declines in certain other markets. Adjusted EBITDA was $21.2 million in the third quarter of 2020 compared to $22.0 million in the year-ago quarter.

U.K. Operations. Revenue in the third fiscal quarter was $9.2 million compared to $12.5 million in the year-ago quarter. The decline was largely attributable to the lingering effect of COVID-19, which drove substantial curtailment of business operations during April and into May. While COVID-19 economic restrictions continued to affect this segment in a more limited manner throughout the third quarter of fiscal 2020, the impact had lessened considerably on a year-over-year basis by July. Adjusted EBITDA was $3.4 million compared to $4.3 million in the year-ago quarter primarily due to the decline in revenue.

U.S. Concrete Waste Management Services. Revenue in the third fiscal quarter increased 18% to $9.4 million compared to $8.0 million in the year-ago quarter. The increase was primarily due to robust organic growth, pricing improvements, new product offerings, and continuing momentum in newer branch locations established over the last year. Adjusted EBITDA in the third fiscal quarter increased 34% to $4.8 million compared to $3.6 million over the year-ago quarter, with the increase primarily attributable to the strong revenue growth and leveraging scale.

Fiscal Year 2020 Outlook

As previously reported in its second quarter earnings release, CPH believes it is currently well-positioned to navigate the current COVID-19 environment and is fully prepared to leverage an economic recovery. Given the heightened uncertainty about the duration and timing of the economic recovery associated with the pandemic, on May 11, 2020, the Company withdrew its 2020 guidance provided in January 2020. We will continue to monitor the situation closely and will update our investors on our outlook when appropriate.

_______________1 Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (GAAP). See Non-GAAP Financial Measures below for a discussion of the definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to its most comparable GAAP measure.2 Net debt is a non-GAAP financial measure. See Non-GAAP Financial Measures below for a discussion of the definition of net debt and a reconciliation to its most comparable GAAP measure.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its third quarter results.

Date: Wednesday, September 9, 2020Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)Toll-free dial-in number: 1-877-407-9039International dial-in number: 1-201-689-8470Conference ID: 13708502

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Companys website at www.concretepumpingholdings.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through September 30, 2020.

Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay ID: 13708502

About Concrete Pumping Holdings

Concrete Pumping Holdings is the leading provider of concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, primarily operating under what we believe are the only established, national brands in both geographies Brundage-Bone for concrete pumping in the U.S., Camfaud in the U.K., and Eco-Pan for waste management services in both the U.S. and U.K. The Companys large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of July 31, 2020, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 28 locations, and route-based concrete waste management services from 16 locations in the U.S. and 1 location in the U.K. For more information, please visit www.concretepumpingholdings.com or the Companys brand websites at www.brundagebone.com, www.camfaud.co.uk, or www.eco-pan.com.

Presentation of Predecessor and Successor Financial Results

As a result of the business combination between our predecessor, Industrea Acquisition Corp., and the private operating company formerly called Concrete Pumping Holdings, Inc. (the Business Combination), the Company is the acquirer for accounting purposes and CPH is the acquiree and accounting predecessor. The Companys financial statement presentation distinguishes the Companys presentations into two distinct periods, the period up to the Business Combination closing date (labeled Predecessor) and the period including and after that date (labeled Successor). The Business Combination was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. As a result of the application of the acquisition method of accounting as of the effective time of the Business Combination, the accompanying Consolidated Financial Statements include a black line to distinguish the results for Predecessor and Successor reporting entities shown, as they are presented on a different basis and are therefore, not comparable.

ForwardLooking Statements

This press release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Companys actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as expect, estimate, project, budget, forecast, anticipate, intend, plan, may, will, could, should, believes, predicts, potential, continue, outlook and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Companys expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Companys control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impacts of the COVID-19 pandemic and related economic conditions on the Company; the outcome of any legal proceedings or demand letters that may be instituted against or sent to the Company or its subsidiaries; the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably and retain its key employees, and realize the expected benefits from the acquisition of Capital Pumping; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in the Companys filings with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (GAAP). The Company believes that this non-GAAP financial measure provides useful information to management and investors regarding certain financial and business trends relating to the Companys financial condition and results of operations. The Companys management also uses this non-GAAP financial measure to compare the Companys performance to that of prior periods for trend analyses, determining incentive compensation and for budgeting and planning purposes. Adjusted EBITDA is also used in quarterly and annual financial reports prepared for the Companys board of directors. The Company believes that this non-GAAP measure provides an additional tool for investors to use in evaluating the Companys ongoing operating results and in comparing the Companys financial results with competitors who also present similar non-GAAP financial measures.

Adjusted EBITDA is defined as net income calculated in accordance with GAAP plus interest expense, income taxes, depreciation, amortization, transaction expenses, loss on debt extinguishment, stock-based compensation, other income, net, and other adjustments. Adjusted EBITDA is not pro forma for acquisitions. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue for the period presented.

See Non-GAAP Measures (Adjusted EBITDA) below for a reconciliation of Adjusted EBITDA to net income (loss) calculated in accordance with GAAP.

Net debt is calculated as all amounts outstanding under debt agreements (currently this includes the Companys term loan and revolving line of credit balances, excluding any offsets for capitalized deferred financing costs) measured in accordance with GAAP less cash. Cash is subtracted from the GAAP measure because it could be used to reduce the Companys debt obligations. A limitation associated with using net debt is that it subtracts cash and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. CPH believes this non-GAAP measure provides useful information to management and investors in order to monitor the Companys leverage and evaluate the Companys consolidated balance sheet.

Current and prospective investors should review the Companys audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate the Companys business. Other companies may calculate Adjusted EBITDA and net debt differently and therefore these measures may not be directly comparable to similarly titled measures of other companies.

As the underlying business and financial results of the Successor and Predecessor entities are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination, management has combined the first quarter 2019 results of the Predecessor and Successor periods for comparability in certain tables below. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, the tables below present the non-GAAP combined results for the first quarter of 2019.

Contact:

Company: Investor Relations:Iain Humphries Gateway Investor RelationsChief Financial Officer Cody Slach1-303-289-7497 1-949-574-3860 BBCP@gatewayir.com

Concrete Pumping Holdings, Inc.Consolidated Balance Sheets

Successor Successor July 31, October 31,(in thousands, except per share amounts) 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 4,131 $ 7,473 Trade receivables, net 44,365 45,957 Inventory 5,339 5,254 Income taxes receivable 4,766 697 Prepaid expenses and other current assets 4,631 3,378 Total current assets 63,232 62,759 Property, plant and equipment, net 305,896 307,415 Intangible assets, net 192,228 222,293 Goodwill 223,565 276,088 Other non-current assets 1,782 1,813 Deferred financing costs 814 997 Total assets $ 787,517 $ 871,365 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Revolving loan $ 12,990 $ 23,555 Term loans, current portion 20,888 20,888 Current portion of capital lease obligations 95 91 Accounts payable 5,910 7,408 Accrued payroll and payroll expenses 11,183 9,177 Accrued expenses and other current liabilities 21,493 28,106 Income taxes payable 1,348 1,153 Deferred consideration - 1,708 Total current liabilities 73,907 92,086 Long term debt, net of discount for deferred 348,183 360,938 financing costsCapital lease obligations, less current portion 405 477 Deferred income taxes 69,257 69,049 Total liabilities 491,752 522,550 Zero-dividend convertible perpetual preferredstock, $0.0001 par value, 2,450,980 shares 25,000 25,000 issued and outstanding as of July 31, 2020 andOctober 31, 2019 Stockholders' equity Common stock, $0.0001 par value, 500,000,000shares authorized, 58,200,084 and 58,253,220 6 6 issued and outstanding as of July 31, 2020 andOctober 31, 2019, respectivelyAdditional paid-in capital 354,696 350,489 Treasury stock (131 ) - Accumulated other comprehensive income 1,008 (599 )(Accumulated deficit) retained earnings (84,814 ) (26,081 )Total stockholders' equity 270,765 323,815 Total liabilities and stockholders' equity $ 787,517 $ 871,365

Concrete Pumping Holdings, Inc.Consolidated Statements of Operations

S/P Combined Successor Predecessor (non-GAAP) (in thousands, Three Months Three Months Nine Months November 1, Nineexcept share Ended July Ended July Ended July December 6, 2018 through Monthsand per share 31, 31, 31, 2018 through December 5, Ended July amounts) 2020 2019 2020 July 31, 2019 2018 31, 2019 Revenue $ 77,131 $ 78,655 $ 225,111 $ 174,613 $ 24,396 $ 199,009 Cost of 39,330 39,665 123,295 98,396 14,027 112,423 operationsGross profit 37,801 38,990 101,816 76,217 10,369 86,586 Gross margin 49.0 % 49.6 % 45.2 % 43.6 % 42.5 % 43.5 % General andadministrative 26,954 28,159 79,941 63,693 4,936 68,629 expensesGoodwill andintangibles - - 57,944 - - - impairmentTransaction - 176 - 1,458 14,167 15,625 costsIncome (loss)from 10,847 10,655 (36,069 ) 11,066 (8,734 ) 2,332 operations Interest (8,364 ) (9,843 ) (26,632 ) (24,753 ) (1,644 ) (26,397 )expense, netLoss onextinguishment - - - - (16,395 ) (16,395 )of debtOther income, 36 28 139 59 6 65 netIncome (loss)before income 2,519 840 (62,562 ) (13,628 ) (26,767 ) (40,395 )taxes Income taxexpense (462 ) (1,922 ) (3,829 ) (3,115 ) (4,192 ) (7,307 )(benefit)Net Income 2,981 2,762 (58,733 ) (10,513 ) (22,575 ) (33,088 )(loss) Less preferredshares (489 ) (456 ) (1,432 ) (1,159 ) (126 ) (1,285 )dividendsLessundistributedearnings - - - - - - allocated topreferredshares Income (loss)available to $ 2,492 $ 2,306 $ (60,165 ) $ (11,672 ) $ (22,701 ) $ (34,373 )commonshareholders Weightedaverage common sharesoutstandingBasic 52,782,663 49,940,411 52,752,884 37,155,182 7,576,289 Diluted 55,892,193 53,122,690 52,752,884 37,155,182 7,576,289 Net (loss)income per common shareBasic $ 0.05 $ 0.05 $ (1.14 ) $ (0.31 ) $ (3.00 ) Diluted $ 0.04 $ 0.05 $ (1.14 ) $ (0.31 ) $ (3.00 )

Concrete Pumping Holdings, Inc.Consolidated Statements of Cash Flows

S/P Combined Successor Predecessor (non-GAAP) Nine Months December 6, November 1, Nine months(in thousands, Ended July 2018 2018 Ended Julyexcept per 31, through through 31, share amounts) 2020 July 31, December 5, 2019 2019 2018 Net income $ (58,733 ) $ (10,513 ) $ (22,575 ) $ (33,088 )(loss)Adjustments toreconcile netincome to net cash providedby operatingactivities:Goodwill andintangibles 57,944 - - - impairmentDepreciation 19,537 14,125 2,060 16,185 Deferred 92 (2,983 ) (4,355 ) (7,338 )income taxesAmortizationof deferred 3,094 1,385 152 1,537 financingcostsWrite offdeferred debt - - 3,390 3,390 issuance costsAmortizationof debt - - (11 ) (11 )premiumAmortizationof intangible 25,290 22,235 653 22,888 assetsStock-basedcompensation 4,207 1,986 27 2,013 expensePrepaymentpenalty onearly - - 13,004 13,004 extinguishmentof debt(Gain)/loss onthe sale ofproperty, (944 ) 420 (166 ) 254 plant andequipmentPayment ofcontingentconsiderationin excess of (526 ) - - - amountsestablished inpurchaseaccountingNet changes inoperatingassets and liabilities(net ofacquisitions):Tradereceivables, 1,668 (4,346 ) 485 (3,861 )netInventory (63 ) (143 ) (294 ) (437 )Prepaidexpenses and (3,520 ) (4,209 ) (1,283 ) (5,492 )other currentassetsIncome taxes (3,899 ) (279 ) 203 (76 )payable, netAccounts (1,489 ) (7,666 ) (654 ) (8,320 )payableAccruedpayroll,accrued 10,826 (8,587 ) 17,280 8,693 expenses andother currentliabilitiesNet cash (usedin) provided 53,484 1,425 7,916 9,341 by operatingactivities Cash flowsfrom investing activities:Purchases ofproperty, (36,658 ) (29,700 ) (503 ) (30,203 )plant andequipmentProceeds fromsale ofproperty, 6,392 1,546 364 1,910 plant andequipmentCash withdrawnfrom Industrea - 238,474 - 238,474 Trust AccountAcquisition ofnet assets,net of cash - (449,434 ) - acquired - CPHacquisitionNet cash (usedin) investing (30,266 ) (239,114 ) (139 ) (239,253 )activities Cash flowsfrom financing activities:Proceeds on - 417,000 - 417,000 long term debtPayments on (15,666 ) (9,747 ) - (9,747 )long term debtProceeds on 206,420 161,123 4,693 165,816 revolving loanPayments on (217,162 ) (128,932 ) (20,056 ) (148,988 )revolving loanRedemption of - (231,415 ) - (231,415 )common sharesPayment ofdebt issuance - (23,708 ) - (23,708 )costsPayments oncapital lease (67 ) (56 ) (7 ) (63 )obligationsPurchase of (131 ) - - - treasury stockIssuance ofpreferred - 25,000 - 25,000 sharesPayment ofunderwriting - (8,050 ) - (8,050 )feesPayment ofcontingentconsideration (1,161 ) - - - established inpurchaseaccountingProceeds onexercise ofrollover - 1,370 - 1,370 incentiveoptionsNet cashprovided by(used in) (27,767 ) 202,585 (15,370 ) 187,215 financingactivitiesEffect offoreigncurrency 1,207 (3,183 ) (70 ) (3,253 )exchange rateon cashNet increase(decrease) in (3,342 ) 4,525 (7,663 ) (3,138 )cashCash: Beginning of 7,473 4 - - periodEnd of period $ 4,131 $ 4,529 $ 958 $ 4,529

Concrete Pumping Holdings, Inc.Segment Revenue

Successor Change Three Three Months Months(in thousands) Ended Ended $ % July 31, July 31, 2020 2019Revenue U.S. Concrete $ 58,644 $ 58,354 $ 290 0.5 %PumpingU.K. Operations 9,208 12,492 (3,284 ) -26.3 %U.S. ConcreteWaste Management 9,390 7,967 1,423 17.9 %ServicesCorporate 625 626 (1 ) -0.2 %Intersegment (736 ) (784 ) 48 -6.1 % $ 77,131 $ 78,655 $ (1,524 ) -1.9 %

S/P Combined Successor Predecessor (non-GAAP) Change Nine December November 1, Nine(in Months 6, 2018 2018 Monthsthousands) Ended July through through Ended July $ % 31, April 30, December 5, 31, 2020 2019 2018 2019Revenue U.S.Concrete $ 171,209 $ 124,969 $ 16,659 $ 141,628 $ 29,581 20.9 %PumpingU.K. 28,294 30,996 5,143 36,139 (7,845 ) -21.7 %OperationsU.S.ConcreteWaste 25,978 18,806 2,628 21,434 4,544 21.2 %ManagementServicesCorporate 1,875 1,634 242 1,876 (1 ) -0.1 %Intersegment (2,245 ) (1,792 ) (276 ) (2,068 ) (177 ) 8.6 % $ 225,111 $ 174,613 $ 24,396 $ 199,009 $ 26,102 13.1 %

Concrete Pumping Holdings, Inc.Segment Adjusted EBITDA

Successor Change Three Three Months Months(in thousands) Ended Ended $ % July 31, July 31, 2020 2019Adjusted EBITDA U.S. Concrete $ 21,170 $ 22,029 $ (859 ) -3.9 %PumpingU.K. Operations 3,397 4,278 (881 ) -20.6 %U.S. ConcreteWaste Management 4,846 3,628 1,218 33.6 %ServicesCorporate 625 625 - 0.0 % $ 30,038 $ 30,560 $ (522 ) -1.7 %

S/P Combined Successor Predecessor (non-GAAP) Change Nine December November 1, Nine(in Months 6, 2018 2018 Monthsthousands) Ended through through Ended July $ % July 31, July 31, December 5, 31, 2020 2019 2018 2019Adjusted EBITDAU.S.Concrete $ 54,338 $ 36,707 $ 7,627 $ 44,334 $ 10,004 22.6 %PumpingU.K. 8,524 9,706 1,396 11,102 (2,578 ) -23.2 %OperationsU.S.ConcreteWaste 12,650 8,309 388 8,697 3,953 45.5 %ManagementServicesCorporate 1,875 1,633 177 1,810 65 3.6 % $ 77,387 $ 56,355 $ 9,588 $ 65,943 $ 11,444 17.4 %

Concrete Pumping Holdings, Inc.Quarterly Financial Performance

(dollars Net AdjustedEBITDA^ AdjustedEBITDA lessin Revenue Income 1 CapitalExpenditures CapitalExpenditures millions) (Loss) Q1 2017 $ 46 $ (6 ) $ 14 $ 4 $ 9 Q2 2017 $ 51 $ 3 $ 16 $ 3 $ 13 Q3 2017 $ 55 $ 4 $ 18 $ 1 $ 18 Q4 2017 $ 60 $ 1 $ 20 $ 14 $ 6 Q1 2018 $ 53 $ 18 $ 16 $ 7 $ 9 Q2 2018 $ 56 $ 5 $ 18 $ 1 $ 17 Q3 2018 $ 66 $ 5 $ 22 $ 11 $ 11 Q4 2018 $ 68 $ 1 $ 22 $ 9 $ 13 Q1 2019 $ 58 $ (26 ) $ 17 $ 11 $ 6 Q2 2019 $ 62 $ (10 ) $ 18 $ 13 $ 5 Q3 2019 $ 79 $ 3 $ 31 $ 4 $ 27 Q4 2019 $ 84 $ 1 $ 30 $ 5 $ 25 Q1 2020 $ 74 $ (3 ) $ 24 $ 20 $ 4 Q2 2020 $ 74 $ (59 ) $ 24 $ 4 $ 20 Q3 2020 $ 77 $ 3 $ 30 $ 6 $ 24

1Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (GAAP). See Non-GAAP Financial Measures above for a discussion of the definition of this measure and reconciliation of such measure to its most comparable GAAP measure.

Concrete Pumping Holdings, Inc.Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA

S/P Combined Successor Predecessor (non-GAAP) Three Three Nine December November 1, Nine(dollars in Months Months Months 6, 2018 2018 Monthsthousands) Ended Ended Ended July through through Ended July July 31, July 31, 31, July 31, December 5, 31, 2020 2019 2020 2019 2018 2019Consolidated Net income $ 2,981 $ 2,762 $ (58,733 ) $ (10,513 ) $ (22,575 ) $ (33,088 )(loss)Interest 8,364 9,843 26,632 24,753 1,644 26,397 expense, netIncome taxexpense (462 ) (1,922 ) (3,829 ) (3,115 ) (4,192 ) (7,307 )(benefit)Depreciationand 14,665 16,477 44,827 36,984 2,713 39,697 amortizationEBITDA 25,548 27,160 8,897 48,109 (22,410 ) 25,699 Transaction - 176 - 1,458 14,167 15,625 expensesLoss on debt - - - - 16,395 16,395 extinguishmentStock based 1,357 1,625 4,208 1,986 - 1,986 compensationOther expense (36 ) (28 ) (139 ) (59 ) (6 ) (65 )(income)Goodwill andintangibles - - 57,944 - - - impairmentOther 3,169 1,627 6,477 4,861 1,442 6,303 adjustmentsAdjusted $ 30,038 $ 30,560 $ 77,387 $ 56,355 $ 9,588 $ 65,943 EBITDA U.S. Concrete PumpingNet income $ 865 $ 1,432 $ (45,925 ) $ (11,532 ) $ (25,252 ) $ (36,784 )(loss)Interest 7,620 9,046 24,448 22,758 1,154 23,912 expense, netIncome taxexpense (368 ) (2,482 ) (4,505 ) (3,414 ) (2,102 ) (5,516 )(benefit)Depreciationand 9,745 9,938 29,893 21,471 1,635 23,106 amortizationEBITDA 17,862 17,934 3,911 29,283 (24,565 ) 4,718 Transaction - 1,458 - 1,458 14,167 15,625 expensesLoss on debt - - - - 16,395 16,395 extinguishmentStock based 1,357 1,625 4,208 1,986 - 1,986 compensationOther expense 1 (26 ) (16 ) (57 ) (6 ) (63 )(income)Goodwill andintangibles - - 43,500 - - - impairmentOther 1,950 1,038 2,735 4,037 1,636 5,673 adjustmentsAdjusted $ 21,170 $ 22,029 $ 54,338 $ 36,707 $ 7,627 $ 44,334 EBITDA U.K. OperationsNet income $ (20 ) $ 999 $ (16,868 ) $ 230 $ 158 $ 388 (loss)Interest 744 796 2,184 1,994 490 2,484 expense, netIncome taxexpense (61 ) 354 333 60 49 109 (benefit)Depreciationand 2,052 2,864 6,313 7,161 890 8,051 amortizationEBITDA 2,715 5,013 (8,038 ) 9,445 1,587 11,032 Transaction - - - - - - expensesLoss on debt - - - - - - extinguishmentStock based - - - - - - compensationOther expense (37 ) - (123 ) - - - (income)Goodwill andintangibles - - 14,444 - - - impairmentOther 719 (735 ) 2,241 261 (191 ) 70 adjustmentsAdjusted $ 3,397 $ 4,278 $ 8,524 $ 9,706 $ 1,396 $ 11,102 EBITDA

Concrete Pumping Holdings, Inc.Reconciliation of Net Income (Loss) to Reported EBITDA to Adjusted EBITDA (continued)

S/P Combined Successor Predecessor (non-GAAP) Three Three Nine December November 1, Nine(dollars in Months Months Months 6, 2018 2018 Monthsthousands) Ended Ended Ended through through Ended July July 31, July 31, July 31, July 31, December 5, 31, 2020 2019 2020 2019 2018 2019U.S. Concrete Waste Management ServicesNet income $ 1,679 $ 321 $ 2,904 $ (65 ) $ 2,009 $ 1,944 (loss)Interest - 1 - 1 - 1 expense, netIncome taxexpense 6 8 245 (20 ) (1,784 ) (1,804 )(benefit)Depreciationand 2,661 3,257 8,000 7,832 163 7,995 amortizationEBITDA 4,346 3,587 11,149 7,748 388 8,136 Transaction - - - - - - expensesLoss on debt - - - - - - extinguishmentStock based - - - - - - compensationOther expense - (2 ) - (2 ) - (2 )(income)Goodwill andintangibles - - - - - - impairmentOther 500 43 1,501 563 - 563 adjustmentsAdjusted $ 4,846 $ 3,628 $ 12,650 $ 8,309 $ 388 $ 8,697 EBITDA Corporate Net income $ 457 $ 10 $ 1,156 $ 854 $ 510 $ 1,364 (loss)Interest - - - - - - expense, netIncome taxexpense (39 ) 198 98 259 (355 ) (96 )(benefit)Depreciationand 207 418 621 520 25 545 amortizationEBITDA 625 626 1,875 1,633 180 1,813 Transaction - (1,282 ) - - - - expensesLoss on debt - - - - - - extinguishmentStock based - - - - - - compensationOther expense - - - - - - (income)Goodwill andintangibles - - - - - - impairmentOther - 1,281 - - (3 ) (3 )adjustmentsAdjusted $ 625 $ 625 $ 1,875 $ 1,633 $ 177 $ 1,810 EBITDA

Concrete Pumping Holdings, Inc.Reconciliation of Net Debt

January 31, April 30, July 31, Change in Net(in 2020 2020 2020 Debt Q2 to thousands) Q3Term loan $ 396,871 $ 391,650 $ 386,427 $ (5,223 )outstandingRevolvingloan draws 38,661 39,211 12,990 (26,221 )outstandingLess: Cash (2,636 ) (18,048 ) (4,131 ) 13,917 Net debt $ 432,896 $ 412,813 $ 395,286 $ (17,527 )