Southland Holdings, Inc. (NYSE:SLND) Q3 2024 Earnings Conference Call November 13, 2024 10:00 AM ET

Company Participants

Alex Murray - Director, Corporate Development & Investor Relations
Frank Renda - President & Chief Executive Officer
Cody Gallarda - Executive Vice President & Chief Financial Officer

Conference Call Participants

Adam Thalhimer - Thompson Davis
Brent Thielman - D.A. Davidson
Julio Romero - Sidoti & Company

Operator

Good morning ladies and gentlemen and welcome to the Southland Holdings Inc. Third Quarter 2024 Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Wednesday November 13, 2024.

I would now like to turn the conference over to Alex Murray. Please go ahead.

Alex Murray

Good morning, everyone, and welcome to the Southland third quarter 2024 conference call. This is Alex Murray, Director of Corporate Development and Investor Relations. Joining me today are Frank Renda, President and Chief Executive Officer; and Cody Gallarda, Executive Vice President and Chief Financial Officer.

Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933; Section 21E of the Securities Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements are uncertain and outside of Southland's control.

Southland's actual results and financial condition may differ materially from those projected forward-looking statements. Therefore, you should not rely on any of these forward-looking statements and we do not undertake any duty to update these statements.

For a discussion of some of the risks that could affect results, please see the Risk Factors section of our Form 10-K for the year ended December 31st, 2023, that was filed with the SEC on March 4th, 2024, and discussion on Form 10-Q for the quarter ended September 30th, 2024, that was filed with the SEC last night.

We will also refer to non-GAAP financial measures and you will find reconciliations in the press release relating to this conference call, which can be found on the Investor Relations' page of our website.

With that, I will now turn the call over to Frank.

Frank Renda

Thank you, Alex. Good morning and thank you for joining Southland's third quarter 2024 conference call.

Third quarter revenue was $173 million with a gross loss of $51 million. It is important to bifurcate our third quarter income statement between the M&P business certain legacy projects and our new core business. Excluding unfavorable adjustments from the M&P business and certain legacy projects, our gross profit in the quarter was $20 million. The unfavorable adjustments which were largely non-cash in the quarter negatively impacted our results by $71 million. The unfavorable adjustments were driven by recent dispute resolutions, scheduled delays that increased completion costs on certain projects, and reduced expected recoveries on legacy projects.