Investor Presentation December 2018
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, Adjusted EBITDA, revenues, expenses, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made, and involve a number of risks and uncertainties which may cause them to turn out to be wrong. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our Form 10-K filed on April 2, 2018, which is available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this presentation. 2
Limbach at a Glance Limbach Holdings is an integrated building systems solutions firm providing mechanical design, engineering, installation, maintenance and energy management services in commercial, institutional and industrial facilities. We serve the full-lifecycle facility needs of prominent clients in the amusement/entertainment, commercial, education, government, healthcare, mission critical and transportation markets with an industry-leading platform oriented to delivering value-added and technically complex engineering and design- enhanced services. With corporate headquarters in Pittsburgh, PA, we operate from 10 strategically located business units throughout the United States including Western Key Information Pennsylvania (Pittsburgh), Eastern Pennsylvania (Warrington, PA), New Jersey (South Brunswick), • 21.1% revenue CAGR from 2015-2017, and New England (Wilmington, MA), Ohio (Columbus and the largest pipeline in the Company’s history Athens, OH), Michigan (Detroit, Pontiac and Lansing, today MI), Southern California (Seal Beach, CA), and Mid- Atlantic (Laurel, MD). Our design, engineering and • Gross margins +105 bps in 2017 over 2016 innovation center, Limbach Engineering & Design • 31.7% of gross profit from the Service Services, is based in Orlando, FL. division in 2017, and a 13.6% maintenance base CAGR from 2015-17 Harper Building Systems, a Limbach Holdings, Inc. company, operates throughout Florida with offices in • >95% repeat business factor Tampa and Lake Mary, north of Orlando. 3
Compelling Investment Opportunity Institutional investors seeking exposure to the building/facility infrastructure sector are limited in LMB Revenue Growth vs. Construction Put in Place 2 their investment options. With geographically diversified operations LMB Non-Residential Market 200% across ten business units, Limbach’s growth profile closely tracks the non-residential 180% construction sector 1 . The Company is focused on numerous organic growth opportunities as well as a 160% well-developed M&A strategy, which position 140% Limbach to accelerate growth in revenue and profitability in coming years. 120% Top 10 Mechanical Firms 3 100% 1 EMCOR Group Inc. $3,428.4 80% 2 Comfort Systems USA $1,448.2 2014 2015 2016 2017 2018 2017 Rank by Revenue 3 ACCO Engineered Systems $932.7 4 API Group Inc. $852.9 5 Southland Industries $850.3 Research Coverage 6 TD Industries Inc. $604.0 D.A. Davidson Brent Thielman 7 Team Industrial Services $528.1 Buy 503-603-3029 $8.00 price target bthielman@dadco.com 8 McKinstry $504.0 Roth Capital Markets Gerry Sweeney 9 Limbach Holdings $485.7 Neutral 267-980-9028 $5.00 price target gsweeney@roth.com 10 Apollo Mechanical Contractors $437.3 1 Calculated R-squared for the 2012-2018E period of 0.86. 2 ENR Top 600 Specialty Contractors , October 22, 2018, as measured by revenue; $ in millions; bold text denotes publicly-traded firms. 3 Indexed to 2014. Limbach data calculated from the mid-point of current revenue guidance for 2018 of $530 - $550 million. 4
Core Operations Exceeding Plan For the year-to-date period ended September 30, Key Trading Statistics 2 Core Operations 1 are performing ahead of Plan Market Price $4.01 when isolated to exclude the year-to-date results 52 Week Low / High $3.82 / $15.22 of the Mid-Atlantic business unit. There is continuing strength across many of the Equity Market Capitalization $30.4 million Company’s geographic markets, and within the Shares Outstanding 3 7.590 million Service division generally. Unrestricted Float (Shares / $ Value) 4.1 million / $16.4 million Entering 2019, we are intently focused on returning the 3 Month ADTV (Shares / $ Value) 36,220 / $0.3 million Mid-Atlantic region to profitability under new leadership while continuing to improve margins across the entire branch portfolio. ($ in n million ons) s) 2 Enterprise Value $69 $4,140 $2,024 3Q’18 Year -to-Date Performance Enterprise Value / 2019 EBITDA 4,5 4.0x 8.0x 9.2x % Owned by Top 10 Holders 72.9% 42.6% 50.8% Excluding Mid-Atlantic ($ in millions) Business Unit As Reported As Reported FY2018 Plan 2015-2017 Revenue CAGR 21.1% 7.0% 6.4% ✓ Earned Revenue $395.1 $316.4 $312.1 2018E-2019 Revenue Growth 4,5 5.0% 4.4% 9.8% ✓ Gross Margin 10.1% 15.3% 15.1% 2017 Gross Margin 13.5% 14.9% 20.5% ✓ EBIT ($3.8) $10.2 $6.0 2017 EBITDA Margin 3.1% 6.2% 7.7% 1 Core Operations excludes results from the Mid-Atlantic business unit. 2 Data per CapIQ as of November 30, 2018. 3 Basic shares outstanding as of November 16, 2018. See p. 28 for a detailed equity capitalization table including a calculation of fully-diluted shares outstanding. 4 Limbach data calculated using the midpoint of current revenue guidance for 2018 of $530 - $550 million, and 2019 analyst consensus EBITDA estimates. 5 2019 revenue and EBITDA estimates for EMCOR Group and Comfort Systems USA per D.A. Davidson. 5
Investment Highlights • We Full-service mechanical platform with growing presence in the complementary electrical trades Premier Provider of Care • Significant design and engineering capabilities serve as a competitive advantage and barrier to entry Complex • National scale and sophisticated operating platform matched with local market knowledge and an Mechanical System entrepreneurial culture Solutions • We Act with With operations spanning 10 distinct business units, Limbach enjoys significant diversification across more than Integrity Considerable 20 local markets, each with a unique economic cycle and discrete business drivers • Benefits of A low concentration, high-quality customer base and diverse project portfolio disperses risk • Diversification High gross margin, recurring revenue Service division provides stability and balance to economic cycles We Strive for • Excellence Focus on technically complex projects with substantial design/engineering influence matches well with facility Exposure to owners, general contractors and construction managers that are leaders in their respective end-markets Best-in-Class • Leveraged toward more demanding and faster growth end-markets including education, healthcare, institutional, Customers and mission critical and transportation End-Markets • We are Organic growth initiatives present lower risk opportunities to increase market share and “share of wallet” on the Competitive Multiple and project site via the addition of incremental self-perform trade services including electrical, plumbing, sheet metal Actionable Growth and fire protection • Initiatives Demographic and industry trends support an acquisition strategy targeted to the penetration of new geographic markets and adjacent geographies, as well as complementary trade services beyond mechanical • We are President & CEO Charlie Bacon joined Limbach in 2004 following a period of significant growth as President & Accountable CEO of the North and South American operations at Bovis Lend Lease Seasoned, Proven • Executive management team consists of both long-tenured Limbach employees and experienced newcomers Leadership Team with backgrounds in mechanical service, electrical construction and private equity/acquisitions • Limbach’s financial position is conservatively managed with a focus on moderate leverage and maintenance of Solid Financial We are Innovative Profile with liquidity, with support from the industry’s leading surety provider • Considerable Aggregate backlog of $487.5 million at September 30, 2018 provides considerable visibility to the achievement Backlog and of 2018 revenue guidance 1 , and building support for growth into 2019 Visibility 1 Current revenue guidance for 2018 of $530 - $550 million. 6
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