{ "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": 15, "pageCount": 86, "prevPage": 14, "nextPage": 16, "slideType": "executive_summary", "function": "summarize", "density": "balanced", "nDataPoints": 0, "notes": "The slide uses a yellow background to highlight critical negative findings about specific individuals.", "elementsJson": [ "headline_text", "paragraph", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-b80c260b0389/15", "deckHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389#slide-15", "components": [ { "bbox": null, "kind": "callout", "text": "Her association with the serious troubles at NewPower and Qwest should make Limbach investors question her fitness to identify protentional problems.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5370-75b3-9c60-ca2901e73bb5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.96, "x": 0.02, "y": 0.175 }, "kind": "paragraph", "text": "When NewPower’s share price fell, those structures failed, forcing Enron to recognize hidden losses. This triggered a key part of Enron’s earnings restatement in late 2001 and accelerated its unraveling. As an audit committee member at NewPower, Ms. Alvarado was responsible for overseeing financial reporting and risk controls during a period when NewPower was incurring massive losses and being used to support Enron’s off-balance-sheet schemes. The collapse of NewPower’s stock played a key role in the unraveling of Enron’s financial cover-ups. Her appointments at both NewPower and Qwest lead us to question the appropriateness of her appointment at Limbach. This history is particularly relevant when evaluating her judgment in her current board roles. Ms. Alvarado served on NewPower’s board alongside several notorious Enron executives, including Richard Causey, Enron’s Chief Accounting Officer; Ken Lay, Enron’s Chairman; and Lou Pai, a key Enron executive who held multiple leadership roles, including CEO of Enron Energy Services. It doesn’t end there, Linda Alvarado also served as a board member for Lennox International, Inc. (NYSE: LII) from 1987 to 2010. In 2004, Lennox had to restate its earnings from 1999-2003 due to improper accounting practices at a Canadian subsidiary which resulted in a formal SEC inquiry. Her association with the serious troubles at NewPower and Qwest should make Limbach investors question her fitness to identify protentional problems.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1137d15f-3d9e-41e5-846f-38a2d3d61aff", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.96, "x": 0.02, "y": 0.69 }, "kind": "paragraph", "text": "Jayme Brooks is Limbach’s current CFO. Prior to Limbach, she worked at Capstone Turbine (formerly Nasdaq: CPST), now known as Capstone Green Energy Corp (OTC: CGEH), as its Chief Accounting Officer (“CAO”) from 2008 to 2015, and then as its CAO/CFO from 2015 to 2019. Not only did Capstone destroy significant shareholder value during Jayme’s tenure, but its conduct also resulted in multiple shareholder lawsuits involving Capstone and its executives. In 2016, a Capstone shareholder filed litigation against Capstone’s management and board. Jayme Brooks was directly named as a defendant in the case. The plaintiffs argued that the defendants knowingly made false and misleading statements, breaching their fiduciary duty to Capstone. The parties in the case eventually reached a settlement and the case was dismissed.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "42a34b59-6577-4866-a84c-2fa288c69145", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.365, "x": 0.318, "y": 0.055 }, "kind": "title", "text": "Executive Summary, Cont'd.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "40b1e61e-fe59-4739-8de9-9f43d7efb8e9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.86, "x": 0.02, "y": 0.645 }, "kind": "title", "text": "Limbach’s CFO Was Previously Named In A Complaint Over Alleged Breach Of Fiduciary Duty", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e9abcb46-0592-4877-ad1f-7d5121038b4a", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Executive summary", "slug": "executive-summary", "agent": null, "layer": "slide", "matchId": "b6c7904b-e8fe-4cb4-b375-9c8680aff269", "evidence": "This slide is an executive summary, which is a common section in business presentations.", "confidence": 0.9 } ], "frameworks": [], "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 }