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  "documentTitle": "Limbach Holdings, Inc. (LMB)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2025-07-22 00:00:00",
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  "notes": "The slide highlights aggressive accounting practices where management estimates for projects in-progress are adjusted to inflate earnings.",
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      "kind": "callout",
      "text": "The trend continued into Q1'25, when over 100% of year-over-year pre-tax earnings growth was driven by gross profit write-ups.",
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      "text": "Net Write Ups As % of Y/Y Increase: 48.9%",
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      "text": "Occasionally, under the cost-to-cost method, management will need to update their estimates for projects in-progress, resulting in gross profit write ups/(downs). We are concerned with the increase in gross profit write-ups from contract estimate revisions in recent quarters and the outsized impacts these management decisions have had on the Company's reported earnings. For example, in 2024 Limbach saw $5.8 million in net gross profit write-ups, representing nearly 50% of the Company's y/y increase in pre-tax earnings.",
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      "text": "Source: Limbach financial statements, Spruce Point analysis",
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      "text": "Earnings Impact Of Gross Profit Write Ups/(Downs) table",
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      "text": "Gross Profit Write-Ups Drove A Material Portion Of Pre-Tax Earnings Growth In 2024",
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