{
  "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": 62,
  "pageCount": 86,
  "prevPage": 61,
  "nextPage": 63,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 15,
  "notes": "Spruce Point Capital Management short report slide.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-b80c260b0389/62",
  "deckHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389#slide-62",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.84,
        "x": 0.08,
        "y": 0.43
      },
      "kind": "callout",
      "text": "Q1'25 Earnings Press Release: For the three months ended March 31, 2025 and 2024, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2a543e46-19c3-4d4d-ac1a-45d41899817f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.84,
        "x": 0.08,
        "y": 0.69
      },
      "kind": "callout",
      "text": "Q1'20 Earnings Call: Beyond the impact of a large project sales in New England in the first quarter of last year, we orchestrated a managed reduction of new sales activity in Southern California and Tampa. Our actions in Southern California were intended to reduce risk while we transition management and stabilize the operation, similar to the plan we executed successfully in the Mid-Atlantic operation.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3fc50709-1119-4d97-9763-d8b24dab4a2c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.84,
        "x": 0.08,
        "y": 0.56
      },
      "kind": "callout",
      "text": "FY22 Earnings Press Release: Includes restructuring charges within our Southern California and Eastern Pennsylvania branches as well as other cost savings initiatives throughout the company.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8faf0408-1027-4bfe-bfbc-d297c03fbe31",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "This ongoing pattern raises questions: what exactly is being restructured at this point?",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-5370-75b3-9c64-dcc70e07c2e4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Restructuring Charges: $6 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-5370-75b3-9c64-e5e16423afee",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Limbach recorded $6 million in restructuring charges in 2022 tied to downsizing its Southern California and Eastern Pennsylvania operations. Yet, despite formally winding down these branches three years ago, the Company has continued to report restructuring charges in every quarter since, conveniently inflating Adj. EBITDA. This ongoing pattern raises questions: what exactly is being restructured at this point? The 10-Ks and 10-Qs provide no meaningful detail on the nature of the charges. Management first referenced restructuring efforts in Southern California in Q1'20, yet five years later, related charges continue.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8635e65b-64b5-4712-a399-5725f90e5069",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Beyond the impact of a large project sales in New England in the first quarter of last year, we orchestrated a managed reduction of new sales activity in Southern California and Tampa. Our actions in Southern California were intended to reduce risk while we transition management and stabilize the operation, similar to the plan we executed successfully in the Mid-Atlantic operation. — Q1'20 Earnings Call",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-5370-75b3-9c64-e3d8bba0d89c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.5,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Limbach financial statements, press releases, and earnings call transcripts, Spruce Point analysis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "144c6cfe-0c22-4d63-9278-3c21623035b0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.33
      },
      "kind": "table",
      "text": "Restructuring Charges table showing values from 2019 to Q1'25",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c5d1947f-d8ab-4d06-a780-ae2b069eb398",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Limbach Appears To Have Been Restructuring Its Southern California Business Since At Least 2020",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ae9b8310-5864-4622-b888-8906885b1ab1",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "c24f7c42-be22-4866-a300-abd025d40834",
      "evidence": "Exposing recurring restructuring charges as a method to inflate EBITDA",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 64,
      "from": 35,
      "beatId": "fb9a213b-6405-45e9-85ce-458dc475f57c",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Preempt Rebuttal",
      "beatSlug": null,
      "evidence": "The document preempts potential rebuttals by addressing potential counterarguments and providing additional evidence to support its claims",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 80,
      "from": 31,
      "beatId": "05b3e7fe-8524-4292-9dca-69fe4e431e99",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Thesis Headline",
      "beatSlug": null,
      "evidence": "The document presents a clear thesis, highlighting several concerns and potential risks with Limbach's financials and operations",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}