{ "docId": "019dd923-622c-750b-8b99-b80c260b0389", "docSlug": "dee45f9e8542", "documentTitle": "Limbach Holdings, Inc. (LMB)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-07-22 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 14, "pageCount": 86, "prevPage": 13, "nextPage": 15, "slideType": "executive_summary", "function": "expose_contradiction", "density": "dense", "nDataPoints": 5, "notes": "The slide uses a 'guilt by association' narrative to undermine the credibility of the company's audit committee members.", "elementsJson": [ "headline_text", "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-b80c260b0389/14", "deckHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389#slide-14", "components": [ { "bbox": null, "kind": "callout", "text": "Given her involvement in a prior breakdown of financial governance, her appointment as Limbach's audit chair raises questions about whether similar lapses in judgment or oversight could occur again.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5370-75b3-9c60-82362ba73072", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.96, "x": 0.02, "y": 0.175 }, "kind": "paragraph", "text": "Highlighting Multiple Connections Between Limbach's Board And High-Profile Fraud Cases", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "22700656-59d0-494a-be9d-041279359302", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.96, "x": 0.02, "y": 0.625 }, "kind": "paragraph", "text": "Laurel Krzeminski and Michael McNally are not the only Limbach directors with connections to accounting fraud. Linda Alvarado has been a director at Limbach since 2021. She was previously a director at Qwest Communications (formerly NYSE:Q) from 2000-2010 and served on its Audit committee from 2000-2005. Under Ms. Alvarado's tenure as a member of Qwest's audit committee, Qwest engaged in a multi-year, multi-billion-dollar accounting fraud between 1999-2002. Qwest was forced to restate its 2000 and 2001 financial statements, reported a $38.5 billion loss for 2002 and eventually paid a $250 million penalty for its actions. Ms. Alvarado is also connected to Enron, one of the biggest financial fraud cases in US history. Ms. Alvarado was on the audit committee for NewPower Holdings (formerly NYSE:NPW), an Enron subsidiary that was spun off in an IPO with Enron retaining ~45% ownership. However, her biography fails to disclose her role. NewPower was to act as an energy distributor to retail clients, buying wholesale energy from Enron. The issue was this model was uneconomic for NewPower and losses quickly piled up. NewPower's stock collapsed post-IPO, undermining Enron's off-balance-sheet hedge vehicles that held NewPower equity.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "537d1ee3-f684-403b-9651-8075739e73f1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.96, "x": 0.02, "y": 0.21 }, "kind": "paragraph", "text": "Heightening our concerns over Limbach's potentially aggressive accounting practices are the multiple ties between Limbach's board members and high-profile financial reporting fraud cases. Limbach directors Laurel Krzeminski and Michael McNally have significant ties to Granite Construction, Inc. (NYSE:GVA). Laurel Krzeminski was GVA's CFO from 2010 to 2018 while Michael McNally has been a director at GVA since 2016. GVA was charged with financial reporting fraud in 2022 for conduct that occurred at the Company between 2017 and 2019, overlapping both Laurel Krzeminski and Michael McNally's tenure at GVA. GVA had to restate its financials from 2017-2019 and settled financial reporting fraud charges with the SEC for $12 million. While not directly charged by the SEC, both Laurel Krzeminski and Michael McNally were forced to pay back part of their compensation because of the SEC's enforcement action. As the audit committee chair at Limbach, Laurel is responsible for ensuring the integrity of financial reporting and internal controls. Given her involvement in a prior breakdown of financial governance, her appointment as Limbach's audit chair raises questions about whether similar lapses in judgment or oversight could occur again.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "787d9efe-5bd8-446b-95b3-4b2224e338f1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.96, "x": 0.02, "y": 0.59 }, "kind": "paragraph", "text": "Another Limbach Director Connected To Some Of The Most High-Profile Frauds Of The 21st Century", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e4b3b476-95de-4ec6-b08b-046980d5dcaa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.35, "x": 0.318, "y": 0.055 }, "kind": "title", "text": "Executive Summary, Cont'd.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3a7d224f-6337-42d4-98da-b21be7bc7239", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Executive summary", "slug": "executive-summary", "agent": null, "layer": "slide", "matchId": "4846ad4a-3fbf-4594-9ad1-bc68084ab64a", "evidence": "This slide is an executive summary, which is a common section in business presentations.", "confidence": 0.9 } ], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "c58686ae-6151-46bb-9a35-eecbfa651e16", "evidence": "The slide explicitly links board members to past financial fraud cases to argue for current governance risk.", "confidence": 0.9 } ], "arcBeats": [ { "to": 19, "from": 5, "beatId": "32ad1395-b980-4b6c-83f9-8323d778a736", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Problem & Complication", "beatSlug": "consultants-gambit-problem-complication", "evidence": "The document highlights several problems and complications with Limbach's financials and operations, including connections to high-profile fraud cases and generous stock-based compensation", "position": 0, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }