Southland Holdings reports Q2 adusted EPS (96c), consensus 2c

Reports Q2 revenue $251.5M, consensus $293.67M. Backlog of $2.74B, compared to $2.64B as of March 31. Southland’s President & CEO, Frank Renda, said, “We continue to make strides in putting our legacy projects behind us and improving our balance sheet and liquidity profile. While we are disappointed about making the decision to settle for less than we believe we were owed in certain circumstances, it was the best decision for Southland’s long-term outlook. We will avoid a lengthy legal process on these disputes that could have tied up our resources for years. In addition to the $58M of settlements, we closed on a real estate transaction that put approximately $25 million on the balance sheet in the Q3. I’m also encouraged by the $27M of positive cash flow from operations our teams generated in the second quarter before taking into consideration the recent dispute settlements. With the recent dispute settlements and other initiatives to strengthen our balance sheet, we are in a much stronger position today to negotiate our remaining legacy disputes and we will continue to vigorously pursue all of the money we are owed. Lastly, we had $375M of new project awards in our core business in the quarter and continue to see strong demand across our core end markets. I remain extremely confident in our core business and the long-term outlook for Southland, despite the headwinds we face in the legacy business.”