Concrete Pumping Holdings, Inc.

Previous wording

All branches operating within our U.S. Concrete Pumping segment are concrete pumping service providers in the United States ("U.S."). Our U.S. Concrete Pumping core business is the provision of concrete pumping services to general contractors and concrete finishing companies in the commercial, infrastructure and residential sectors. Equipment generally returns to a "home base" nightly and these branches do not contract to purchase, mix, or deliver concrete. This segment primarily consists of our Brundage-Bone business which has approximately 90 branch locations across 22 states with its corporate headquarters in Thornton, Colorado.

Current wording

All branches operating within our U.S. Concrete Pumping segment are concrete pumping service providers in the United States ("U.S."). Our U.S. Concrete Pumping core business is the provision of concrete pumping services to general contractors and concrete finishing companies in the commercial, infrastructure and residential sectors. Equipment generally returns to a "home base" nightly and these branches do not contract to purchase, mix, or deliver concrete. This segment primarily consists of our Brundage-Bone business which has approximately 95 branch locations across 23 states with its corporate headquarters in Thornton, Colorado.

Previous wording

Our U.S. Concrete Waste Management Services segment consists of our U.S. based Eco-Pan business. Eco-Pan provides industrial cleanup and containment services, primarily to customers in the construction industry. Eco-Pan uses containment pans specifically designed to hold waste products from concrete and other industrial cleanup operations. Eco-Pan has 21 operating locations across the U.S. with its corporate headquarters in Thornton, Colorado.

Current wording

Our U.S. Concrete Waste Management Services segment consists of our U.S. based Eco-Pan business. Eco-Pan provides industrial cleanup and containment services, primarily to customers in the construction industry. Eco-Pan uses pans and roll-off containers specifically designed to hold waste products from concrete and other industrial cleanup operations. Eco-Pan has 23 operating locations across the U.S. with its corporate headquarters in Thornton, Colorado.

Previous wording

The tables included in the period-to-period comparisons below provide summaries of our revenues and gross profits for our business segments for the three and six months ended April 30, 2025 and 2024.

Current wording

The tables included in the period-to-period comparisons below provide summaries of our revenues and gross profits for our business segments for the three and nine months ended July 31, 2025 and 2024.

Previous wording

(1) For the three months ended April 30, 2025 and 2024, intersegment revenue of $0.1 million is excluded.

Current wording

(1) For the three months ended July 31, 2025 and 2024, intersegment revenue of $0.2 million and $0.1 million, respectively, is excluded.

Previous wording

*Total revenue.*Total revenues were $94.0 million for the three months ended April 30, 2025 compared to $107.1 million for the three months ended April 30, 2024. Revenue by segment is further discussed below.

Current wording

*Total revenue.*Total revenues were $103.7 million for the three months ended July 31, 2025 compared to $109.6 million for the three months ended July 31, 2024. Revenue by segment is further discussed below.

Previous wording

*U.S. Concrete Pumping.*Revenue for our U.S. Concrete Pumping segment decreased by 16.8%, or $12.5 million, from $74.6 million in the second quarter of fiscal 2024 to $62.1 million for the second quarter of fiscal 2025 primarily attributable to a decrease in volumes driven by (1) a continued general slowdown from deferrals in commercial construction work and emerging challenges in residential work, mostly due to high interest rates and uncertainty around extensions of U.S. tax policy, and (2) adverse weather events in the months of February and April. Further, while we have not been directly impacted by tariffs, the added uncertainly surrounding tariffs has contributed to the deferral of certain commercial construction projects.

Current wording

*U.S. Concrete Pumping.*Revenue for our U.S. Concrete Pumping segment decreased by 7.9%, or $5.9 million, from $75.2 million in the third quarter of fiscal 2024 to $69.3 million for the third quarter of fiscal 2025 primarily attributable to a decrease in volumes driven by (1) ongoing deferrals in commercial construction demand and softness in residential demand, mostly due to economic and market uncertainty from high interest rates, and (2) higher than normal rainfall in the Company's central and southeastern regions in the months of May and June. Further, while we have not been directly impacted by tariffs, the added uncertainly surrounding tariffs has contributed to the deferral of certain commercial construction projects.

Previous wording

*U.S. Concrete Waste Management Services.*Revenue for the U.S. Concrete Waste Management Services segment improved by 6.9%, or $1.2 million, from $16.9 million in the second quarter of fiscal 2024 to $ 18.1 million for the second quarter of fiscal 2025. The increase in revenue was driven by organic growth and pricing improvements.

Current wording

*U.S. Concrete Waste Management Services.*Revenue for the U.S. Concrete Waste Management Services segment improved by 4.3%, or $0.8 million, from $18.5 million in the third quarter of fiscal 2024 to $19.3 million for the third quarter of fiscal 2025. The increase in revenue was driven by organic volume growth and pricing improvements.

Previous wording

*U.K. Operations.*Revenue for our U.K. Operations segment decreased by 11.3%, or $1.8 million, from $15.5 million in the second quarter of fiscal 2024 to $13.8 million for the second quarter of fiscal 2025. Excluding the impact from foreign currency translation, revenue was down 13.1% year-over-year, due to lower volumes caused by a general slowdown in commercial construction work.

Current wording

*U.K. Operations.*Revenue for our U.K. Operations segment decreased by 5.0%, or $0.8 million from $15.9 million in the third quarter of fiscal 2024 to $15.1 million for the third quarter of fiscal 2025. Excluding the impact from foreign currency translation, revenue was down 10.0% year-over-year, due to lower volumes caused by a slowdown in commercial construction demand.

Previous wording

*General and administrative expenses ("G&A").*G&A expenses for the three months ended April 30, 2025 were $27.9 million, a decrease of $1.8 million from $29.7 million in the three months ended April 30, 2024. G&A expenses as a percent of revenue were 29.7% for the second quarter of fiscal 2025 compared to 27.7% for the same period a year ago. The decrease in G&A expenses was largely due to (1) lower labor costs of approximately $1.3 million as a result of reduced headcount and (2) non-cash decreases in amortization expense of $0.8 million.

Current wording

*General and administrative expenses ("G&A").*G&A expenses for the three months ended July 31, 2025 were $27.5 million, a decrease of $0.4 million from $27.9 million in the three months ended July 31, 2024. G&A expenses as a percent of revenue were 26.5% for the third quarter of fiscal 2025 compared to 25.5% for the same period a year ago.

Previous wording

For the second quarter of fiscal 2025, excluding amortization of intangible assets of $3.0 million, depreciation expense of $0.6 million, and stock-based compensation expense of $0.5 million, G&A expenses were $23.8 million (25.3% of revenue). For the second quarter of fiscal 2024, excluding amortization of intangible assets of $3.9 million, depreciation expense of $0.6 million, and stock-based compensation expense of $0.7 million, G&A expenses were $24.5 million (22.9% of revenue).

Current wording

For the third quarter of fiscal 2025, excluding amortization of intangible assets of $2.9 million, depreciation expense of $0.9 million, and stock-based compensation expense of $0.5 million, G&A expenses were $23.2 million (22.4% of revenue). For the third quarter of fiscal 2024, excluding amortization of intangible assets of $3.7 million, depreciation expense of $0.6 million, and stock-based compensation expense of $0.6 million, G&A expenses were $23.0 million (20.9% of revenue).

Previous wording

*Interest expense and amortization of deferred financing costs, net of interest income.*Interest expense and amortization of deferred financing costs, net of interest income for the second quarter of fiscal 2025 was $8.3 million, up $1.4 million from $6.9 million in the second quarter of fiscal 2024. The increase was primarily attributable to the refinancing of our senior notes during the first quarter of fiscal 2025 resulting in an increase of interest expense of $2.5 million. This was slightly offset by a reduction of interest expense from our ABL facility of $0.5 million and an increase of interest income of $0.2 million, as compared to the same quarter a year ago.

Current wording

*Interest expense and amortization of deferred financing costs.*Interest expense and amortization of deferred financing costs for the third quarter of fiscal 2025 was $8.4 million, up $2.1 million from $6.3 million in the third quarter of fiscal 2024. The increase was primarily attributable to the refinancing of our senior notes during the first quarter of fiscal 2025 resulting in an increase in interest expense of $2.3 million. This was slightly offset by a reduction of interest expense from our ABL facility of $0.2 million as compared to the same quarter a year ago.

Previous wording

*Income tax expense (benefit).*For the six months ended April 30, 2025 and 2024 the comparability of effective tax rates between both periods was primarily impacted by excess tax deficiencies from share-based compensation in fiscal 2024.

Current wording

*Income tax expense.*For the three months ended July 31, 2025 and 2024 the Company’s effective tax rate was 26.5% and 29.0%, respectively. The comparability of effective tax rates between both periods was primarily impacted by disqualifying dispositions on stock options in fiscal 2025.

Previous wording

(1) For the six months ended April 30, 2025 and 2024, intersegment revenue of $0.2 million is excluded.

Current wording

(1) For the nine months ended July 31, 2025 and 2024, intersegment revenue of $0.4 million and $0.3 million, respectively, is excluded.

Previous wording

*Total revenue.*Total revenues were $180.4 million for the six months ended April 30, 2025 compared to $204.8 million for the six months ended April 30, 2024. Revenue by segment is further discussed below.

Current wording

*Total revenue.*Total revenues were $284.1 million for the nine months ended July 31, 2025 compared to $314.4 million for the nine months ended July 31, 2024. Revenue by segment is further discussed below.

Previous wording

*U.S. Concrete Pumping.*Revenue for our U.S. Concrete Pumping segment decreased by 15.8%, or $22.3 million, from $141.3 million in the six months ended April 30, 2024 to $119.0 million for the six months ended April 30, 2025 primarily attributable to a decrease in volumes driven by (1) significant weather events in the Company's central, mountain, midwest, south and southeastern regions throughout the year and (2) a continued general slowdown from deferrals in commercial construction work and emerging challenges in residential work, mostly due to high interest rates and uncertainty around extensions of U.S. tax policy. Further, while we have not been directly impacted by tariffs, the added uncertainly surrounding tariffs has contributed to the deferral of certain commercial construction projects.

Current wording

*U.S. Concrete Pumping.*Revenue for our U.S. Concrete Pumping segment decreased by 13.0%, or $28.2 million, from $216.5 million in the nine months ended July 31, 2024 to $188.3 million for the nine months ended July 31, 2025 primarily attributable to a decrease in volumes driven by (1) a continued slowdown from deferrals in commercial construction demand and subdued residential construction demand, mostly due to high interest rates and economic uncertainty around extensions of U.S. tax policy and (2) significant disruptive weather events across the U.S. throughout the year. Further, while we have not been directly impacted by tariffs, the added uncertainly surrounding tariffs has contributed to the deferral of certain commercial construction projects.

Previous wording

*U.S. Concrete Waste Management Services.*Revenue for the U.S. Concrete Waste Management Services segment improved by 6.9%, or $2.2 million, from $32.5 million in the six months ended April 30, 2024 to $34.8 million for the six months ended April 30, 2025. The increase in revenue was driven by organic growth and pricing improvements.

Current wording

*U.S. Concrete Waste Management Services.*Revenue for the U.S. Concrete Waste Management Services segment improved by 5.9%, or $3.0 million, from $51.1 million in the nine months ended July 31, 2024 to $54.1 million for the nine months ended July 31, 2025. The increase in revenue was driven by organic volume growth and pricing improvements.

Previous wording

*U.K. Operations.*Revenue for our U.K. Operations segment decreased by 14.0%, or $4.3 million, from $30.9 million in the six months ended April 30, 2024 to $26.6 million for the six months ended April 30, 2025. Excluding the impact from foreign currency translation, revenue was down 14.8% year-over-year, due to lower volumes caused by a general slowdown in commercial construction work.

Current wording

*U.K. Operations.*Revenue for our U.K. Operations segment decreased by 10.9%, or $5.1 million, from $46.8 million in the nine months ended July 31, 2024 to $41.7 million for the nine months ended July 31, 2025. Excluding the impact from foreign currency translation, revenue was down 13.2% year-over-year, due to lower volumes caused by a slowdown in commercial construction demand.

Previous wording

*Gross margin.*Our gross margin for the second quarter of fiscal 2025 was 38.5% compared to 39.0% in the second quarter of fiscal 2024.

Current wording

*Gross margin.*Our gross margin for the nine months ended July 31, 2025 was 37.9% compared to 38.0% in the nine months ended July 31, 2024.

Previous wording

*General and administrative expenses ("G&A").*G&A expenses for the six months ended April 30, 2025 were $55.7 million, a decrease of $5.9 million from $61.6 million in the six months ended April 30, 2024. G&A expenses as a percent of revenue were 30.9% for the six months ended April 30, 2025 compared to 30.1% for the same period a year ago. The decrease in G&A expenses was largely due to (1) the non-recurring $3.5 million sales tax litigation-related charge in the first quarter of 2024, (2) lower labor costs of approximately $2.1 million as a result of reduced headcount, and (3) non-cash decreases in amortization expense of $1.7 million, that were partially offset by a decrease in gain on asset sales of $1.0 million and higher professional fees of $0.5 million.

Current wording

*General and administrative expenses ("G&A").*G&A expenses for the nine months ended July 31, 2025 were $83.1 million, a decrease of $6.4 million from $89.5 million in the nine months ended July 31, 2024. G&A expenses as a percent of revenue were 29.3% for the nine months ended July 31, 2025 compared to 28.5% for the same period a year ago. The decrease in G&A expenses was largely due to (1) the non-recurring $3.5 million sales tax litigation-related charge in the first quarter of 2024 as a result of an adverse court ruling related to sales tax in Washington State, as further described in Note 14 in Part I. Item 1 of this Report, (2) a decrease in labor costs of $2.5 million as a result of reduced headcount and (3) a non-cash decrease in amortization expense of $2.5 million. These items were partially offset by (4) a decrease in foreign currency gains of $0.8 million, a decrease in gain on asset sales of $0.7 million and higher bank fees of $0.5 million.

Previous wording

For the six months ended April 30, 2025, excluding amortization of intangible assets of $6.1 million, depreciation expense of $1.1 million, and stock-based compensation expense of $0.9 million, G&A expenses were $47.6 million (26.4% of revenue). For the six months ended April 30, 2024, excluding amortization of intangible assets of $7.8 million, depreciation expense of $1.1 million, stock-based compensation expense of $1.3 million and the non-recurring $3.5 million sales tax litigation-related charge, G&A expenses were $47.9 million (23.4% of revenue)

Current wording

For the nine months ended July 31, 2025, excluding amortization of intangible assets of $9.0 million, depreciation expense of $2.0 million, and stock-based compensation expense of $1.4 million, G&A expenses were $70.7 million (24.9% of revenue). For the nine months ended July 31, 2024, excluding amortization of intangible assets of $11.5 million, depreciation expense of $1.7 million, stock-based compensation expense of $1.9 million and non-recurring charges of $4.1 million which include $3.5 million related to the sales tax court ruling, G&A expenses were $70.3 million (22.4% of revenue).

Previous wording

*Interest expense and amortization of deferred financing costs, net of interest income.*Interest expense and amortization of deferred financing costs, net of interest income for the six months ended April 30, 2025 was $14.1 million, up $0.8 million from $13.3 million in the six months ended April 30, 2024. The increase was primarily attributable to the refinancing of our senior notes during the first quarter of fiscal 2025 resulting in an increase of interest expense of $2.6 million. This was slightly offset by a reduction of interest expense from our ABL facility of $1.0 million and an increase of interest income of $0.6 million, as compared to the same period a year ago.

Current wording

*Interest expense and amortization of deferred financing costs.*Interest expense and amortization of deferred financing costs for the nine months ended July 31, 2025 was $23.2 million, up $3.5 million from $19.7 million in the nine months ended July 31, 2024. The increase was primarily attributable to the refinancing of our senior notes during the first quarter of fiscal 2025 resulting in an increase in interest expense of $4.9 million. This was slightly offset by a reduction of interest expense from our ABL facility of $1.2 million as compared to the same period a year ago.

Previous wording

Debt extinguishment costs. On January 31, 2025, we closed on our private offering of $425.0 million in aggregate principal amount of senior secured second lien notes due 2032 and repaid all outstanding indebtedness under our then-existing senior notes due 2026. The $1.4 million in debt extinguishment costs incurred for the six months ended April 30, 2025, relate to the write-off of all unamortized deferred debt issuance costs that were related to the 2026 Notes. There were no debt extinguishment costs for the six months ended April 30, 2024.

Current wording

Debt extinguishment costs. On January 31, 2025, we closed on our private offering of $425.0 million in aggregate principal amount of senior secured second lien notes due 2032 and repaid all outstanding indebtedness under our then-existing senior notes due 2026. The $1.4 million in debt extinguishment costs incurred for the nine months ended July 31, 2025, relate to the write-off of all unamortized deferred debt issuance costs that were related to the 2026 Notes. There were no debt extinguishment costs for the nine months ended July 31, 2024.

Previous wording

*Income tax expense (benefit).*For the three months ended April 30, 2025 and 2024 the comparability of effective tax rates between both periods was primarily impacted by excess tax deficiencies from share-based compensation in fiscal 2024.

Current wording

*Income tax expense.*For the nine months ended July 31, 2025 and 2024 the Company’s effective tax rate was 21.8% and 38.5%, respectively. The comparability of effective tax rates between both periods was primarily impacted by excess tax deficiencies from share-based compensation in fiscal 2024.

Previous wording

The Company recast segment results for the three and six months ended April 30, 2024 are below:

Current wording

The Company recast segment results for the three and nine months ended July 31, 2024 are below:

Previous wording

U.S. Concrete Pumping. Net loss for our U.S. Concrete Pumping segment was $1.6 million for the second quarter of fiscal 2025 compared to a net income of $0.9 million for the second quarter of fiscal 2024. Adjusted EBITDA for our U.S. Concrete Pumping segment was $12.7 million for the second quarter of fiscal 2025, down $4.8 million from $17.5 million for the same period in fiscal 2024. The decrease in net income was primarily driven by the decrease in revenue and an increase of interest expense of $0.6 million as discussed above. The decrease in adjusted EBITDA was primarily related to the decrease in revenue as discussed above.

Current wording

U.S. Concrete Pumping. Net income for our U.S. Concrete Pumping segment was $1.6 million for the third quarter of fiscal 2025 compared to a net income of $5.0 million for the third quarter of fiscal 2024. Adjusted EBITDA for our U.S. Concrete Pumping segment was $15.6 million for the third quarter of fiscal 2025, down $4.7 million from $20.3 million for the same period in fiscal 2024. The decrease in net income was primarily driven by the decrease in revenue and an increase in interest expense and amortization of deferred financing costs of $1.0 million as discussed above. The decrease in adjusted EBITDA was primarily related to the decrease in revenue volume as discussed above.

Previous wording

*U.S. Concrete Waste Management Services.*Net income for our U.S. Concrete Waste Management Services segment was $1.2 million for the second quarter of fiscal 2025 compared to a net income of $1.1 million for the second quarter of fiscal 2024. Adjusted EBITDA for our U.S. Concrete Waste Management Services segment was $6.7 million for the second quarter of fiscal 2025, up $0.7 million from $5.9 million for the same period in fiscal 2024. The increase in adjusted EBITDA was primarily attributable to the improved year-over-year revenue and disciplined cost control.

Current wording

*U.S. Concrete Waste Management Services.*Net income for our U.S. Concrete Waste Management Services segment was $1.4 million for the third quarter of fiscal 2025 compared to a net income of $1.7 million for the third quarter of fiscal 2024. Adjusted EBITDA for our U.S. Concrete Waste Management Services segment was $7.4 million for the third quarter of fiscal 2025, up $0.2 million from $7.2 million for the same period in fiscal 2024. The slight increase in adjusted EBITDA was primarily attributable to the improved year-over-year revenue and disciplined cost control.

Previous wording

U.K. Operations. Net income for our U.K. Operations segment was $0.4 million for the second quarter of fiscal 2025 compared to net income of $1.0 million for the second quarter of fiscal 2024. Adjusted EBITDA for our U.K. Operations segment was $3.2 million for the second quarter of fiscal 2025, down $1.0 million from $4.1 million from the same period in fiscal 2024. Excluding the impact from foreign currency translation, net income and adjusted EBITDA changes were primarily related to the decrease in revenue as discussed above.

Current wording

U.K. Operations. Net income for our U.K. Operations segment was $0.7 million for the third quarter of fiscal 2025 compared to net income of $0.9 million for the third quarter of fiscal 2024. Adjusted EBITDA for our U.K. Operations segment was $3.9 million for the third quarter of fiscal 2025, down $0.4 million from $4.2 million from the same period in fiscal 2024. Excluding the impact from foreign currency translation, the changes in net income and adjusted EBITDA were primarily related to the decrease in revenue as discussed above.

Previous wording

U.S. Concrete Pumping. Net loss for our U.S. Concrete Pumping segment was $4.7 million for the six months ended April 30, 2025 compared to a net loss of $2.3 million for the six months ended April 30, 2024. Adjusted EBITDA for our U.S. Concrete Pumping segment was $21.8 million for the six months ended April 30, 2025, down $7.3 million from $29.1 million for the same period in fiscal 2024. These decreases were largely driven by the revenue decline as discussed above, while the impact on net loss was also impacted by the non-recurring $3.5 million sales tax litigation-related charge incurred in fiscal 2024 and the loss on debt extinguishment of $0.9 million in the first quarter of 2025.

Current wording

U.S. Concrete Pumping. Net loss for our U.S. Concrete Pumping segment was $3.1 million for the nine months ended July 31, 2025 compared to net income of $2.7 million for the nine months ended July 31, 2024. Adjusted EBITDA for our U.S. Concrete Pumping segment was $37.4 million for the nine months ended July 31, 2025, down $11.9 million from $49.3 million for the same period in fiscal 2024. These decreases were largely driven by the revenue decline as discussed above, while the impact on net loss was also impacted by the non-recurring $3.5 million sales tax litigation-related charge incurred in fiscal 2024, the loss on debt extinguishment of $0.9 million in the first quarter of 2025 and an increase in interest expense and amortization of deferred financing costs of $1.4 million.

Previous wording

U.S. Concrete Waste Management Services. Net income for our U.S. Concrete Waste Management Services segment was $1.4 million for the six months ended April 30, 2025 compared to a net loss of $0.2 million for the six months ended April 30, 2024. Adjusted EBITDA for our U.S. Concrete Waste Management Services segment was $11.7 million for the six months ended April 30, 2025, up $1.3 million from $10.4 million for the same period in fiscal 2024. The increase in net income and adjusted EBITDA was primarily attributable to the improved year-over-year revenue and disciplined cost control.

Current wording

U.S. Concrete Waste Management Services. Net income for our U.S. Concrete Waste Management Services segment was $2.8 million for the nine months ended July 31, 2025 compared to a net income of $1.5 million for the nine months ended July 31, 2024. Adjusted EBITDA for our U.S. Concrete Waste Management Services segment was $19.1 million for the nine months ended July 31, 2025, up $1.5 million from $17.6 million for the same period in fiscal 2024. The increases in net income and adjusted EBITDA were primarily attributable to the improved year-over-year revenue and disciplined cost control, while the impact on net income was also impacted by a decrease in tax expense of $2.0 million.

Previous wording

U.K. Operations. Net income for our U.K. Operations segment was $0.6 million for the six months ended April 30, 2025 compared to net income of $1.5 million for the six months ended April 30, 2024. Adjusted EBITDA for our U.K. Operations segment was $6.0 million for the six months ended April 30, 2025, down $1.3 million from $7.4 million from the same period in fiscal 2024. Excluding the impact from foreign currency translation, the decreases in net income and adjusted EBITDA was primarily related to the decrease in revenue as described above.

Current wording

U.K. Operations. Net income for our U.K. Operations segment was $1.3 million for the nine months ended July 31, 2025 compared to net income of $2.4 million for the nine months ended July 31, 2024. Adjusted EBITDA for our U.K. Operations segment was $9.9 million for the nine months ended July 31, 2025, down $1.7 million from $11.6 million from the same period in fiscal 2024. Excluding the impact from foreign currency translation, the decreases in net income and adjusted EBITDA were primarily related to the decrease in revenue as described above.

Previous wording

Our capital structure is primarily a combination of (1) permanent financing, represented by stockholders’ equity; (2) zero-dividend convertible perpetual preferred stock; (3) long-term financing represented by our Senior Notes (as defined below) and (4) short-term financing under our ABL Facility (as defined below). Our primary sources of liquidity are cash generated from operations, available cash and cash equivalents and access to our revolving credit facility under our ABL Facility (as defined below), which provides for aggregate borrowings of up to $350.0 million, subject to a borrowing base limitation. We use our liquidity and capital resources to: (1) finance working capital requirements; (2) service our indebtedness; (3) purchase property, plant and equipment (4) finance strategic acquisitions; (5) repurchase shares and (6) pay dividends to our stockholders, as discussed further below. As of April 30, 2025, we had $37.8 million of cash and cash equivalents and $314.7 million of available borrowing capacity under the ABL Facility (as defined below), providing total available liquidity of $352.5 million.

Current wording

Our capital structure is primarily a combination of (1) permanent financing, represented by stockholders’ equity; (2) zero-dividend convertible perpetual preferred stock; (3) long-term financing represented by our Senior Notes (as defined below) and (4) short-term financing under our ABL Facility (as defined below). Our primary sources of liquidity are cash generated from operations, available cash and cash equivalents and access to our revolving credit facility under our ABL Facility (as defined below), which provides for aggregate borrowings of up to $350.0 million, subject to a borrowing base limitation. We use our liquidity and capital resources to: (1) finance working capital requirements; (2) service our indebtedness; (3) purchase property, plant and equipment (4) finance strategic acquisitions; (5) repurchase shares and (6) pay dividends to our stockholders, as discussed further below. As of July 31, 2025, we had $41.0 million of cash and cash equivalents and $317.0 million of available borrowing capacity under the ABL Facility (as defined below), providing total available liquidity of $358.0 million.

Previous wording

Our working capital surplus as of April 30, 2025 was $45.7 million. We are in compliance with our debt covenants and believe that we have sufficient working capital to meet our material cash requirements for the foreseeable future.

Current wording

Our working capital surplus as of July 31, 2025 was $48.4 million. We are in compliance with our debt covenants and believe that we have sufficient working capital to meet our material cash requirements for the foreseeable future.

Previous wording

The amount of our future capital expenditures will depend on a number of factors including general economic conditions and growth prospects. In response to changing economic conditions, we believe we have the flexibility to modify our capital expenditures by adjusting them (either up or down) to match our actual performance and business needs. Our gross capital expenditures for the six months ended April 30, 2025 and 2024 were approximately $19.5 million and $28.8 million, respectively. See "Cash Flow" discussion below for more information.

Current wording

The amount of our future capital expenditures will depend on a number of factors including general economic conditions and growth prospects. In response to changing economic conditions, we believe we have the flexibility to modify our capital expenditures by adjusting them (either up or down) to match our actual performance and business needs. Our gross capital expenditures for the nine months ended July 31, 2025 and 2024 were approximately $34.2 million and $37.5 million, respectively. See "Cash Flow" discussion below for more information.

Previous wording

During the six months ended April 30, 2025, we paid a special cash dividend of $1.00 per share, totaling $53.1 million. The dividend was funded with cash on hand and net proceeds from our new 2032 Notes (as defined below). The declaration of dividends on our common stock is discretionary and will be determined by our Board of Directors in its sole discretion and will depend on our business conditions, financial condition, earnings, liquidity and capital requirements, contractual restrictions and other factors.

Current wording

During the nine months ended July 31, 2025, we paid a special cash dividend of $1.00 per share, totaling $53.1 million. The dividend was funded with cash on hand and net proceeds from our new 2032 Notes (as defined below). The declaration of dividends on our common stock is discretionary and will be determined by our Board of Directors in its sole discretion and will depend on our business conditions, financial condition, earnings, liquidity and capital requirements, contractual restrictions and other factors.

Previous wording

There was no outstanding balance under the ABL Facility as of April 30, 2025 and as of that date, the Company was in compliance with all debt covenants. In addition, as of April 30, 2025, the Company had $1.1 million in credit line reserves and a letter of credit balance of $12.2 million. As of April 30, 2025, we had $314.7 million of available borrowing capacity under the ABL Facility. Debt issuance costs related to revolving credit facilities are capitalized and reflected as an asset in deferred financing costs in the accompanying condensed balance sheets. The Company had debt issuance costs related to the revolving credit facilities of $2.3 million as of April 30, 2025.

Current wording

There was no outstanding balance under the ABL Facility as of July 31, 2025 and as of that date, the Company was in compliance with all debt covenants. In addition, as of July 31, 2025, the Company had $1.1 million in credit line reserves and a letter of credit balance of $16.2 million. As of July 31, 2025, we had $317.0 million of available borrowing capacity under the ABL Facility. Debt issuance costs related to revolving credit facilities are capitalized and reflected as an asset in deferred financing costs in the accompanying condensed balance sheets. The Company had debt issuance costs related to the revolving credit facilities of $2.2 million as of July 31, 2025.

Previous wording

Net cash provided by operating activities during the six months ended April 30, 2025 was $30.8 million. The Company had a net loss of $2.6 million, which included net non-cash expense items of $29.6 million. In addition, we had cash inflows related to an increase in our working capital of $3.9 million. Cash inflows related to working capital activity include a decrease to receivables of $8.4 million and an increase to accounts payable of $4.3 million, partially offset by an increase to other operating assets of $6.3 million and a decrease in other operating liabilities of $2.4 million. The decrease in receivables is due to decreases in sales volumes during the six months ended April 30, 2025. The increase in accounts payable is driven by the general timing of invoices. The increase in other operating assets is due to the timing of our annual commercial insurance premium payments. The decrease in other operating liabilities is related to operating lease payments of $2.5 million.

Current wording

Net cash provided by operating activities during the nine months ended July 31, 2025 was $49.9 million. The Company had net income of $1.1 million, which included net non-cash expense items of $47.0 million. In addition, we had cash inflows related to a decrease in our working capital of $1.8 million. Cash inflows related to working capital activity include an increase in other operating liabilities of $6.4 million and a decrease in receivables of $4.4 million, partially offset by an increase to other operating assets of $7.0 million, an increase to inventory of $1.4 million and a decrease to accounts payable of $0.6 million. The increase in other operating liabilities is primarily related to the timing of our periodic senior notes interest payments. The decrease in receivables is due to decreases in sales volumes during the nine months ended July 31, 2025. The increase in other operating assets is due to the timing of our annual commercial insurance premium payments. The increase in inventory was driven by increased inventory levels. The decrease in accounts payable is driven by the general timing of invoices.

Previous wording

Net cash provided by operating activities during the six months ended April 30, 2024 was $29.4 million. The Company had a net loss of $0.8 million, which included net non-cash expense items of $30.8 million. In addition, we had cash outflows related to an increase in our working capital of $0.6 million. Cash outflows related to working capital activity include a decrease in other operating liabilities of $3.8 million, an increase in other operating assets of $2.4 million, and a decrease of $1.2 million in accounts payable. These were offset by a decrease in receivables of $6.3 million and a decrease in inventory of $0.6 million. The decrease in operating liabilities is due to payments on operating leases of $2.6 million and a decrease in sales and use tax. The increase in other operating assets is primarily due to the timing of prepaid insurance. The decrease in accounts payable is driven by the timing of vendor payments. The decrease in receivables is due to seasonal collection of receivables and decrease in sales volumes during the six months ended April 30, 2024.

Current wording

Net cash provided by operating activities during the nine months ended July 31, 2024 was $64.5 million. The Company had net income of $6.8 million, which included net non-cash expense items of $50.3 million. In addition, we had cash inflows related to a decrease in our working capital of $7.4 million. Cash inflows related to working capital activity include a decrease in receivables of $7.2 million, an increase in other operating liabilities of $2.1 million and a decrease in inventory of $0.3 million. These were offset by a decrease of $1.7 million in accounts payable and an increase in other operating assets of $0.6 million. The decrease in receivables is due to decreases in sales volumes during the nine months ended July 31, 2024. The decrease in accounts payable is driven by a change in timing of invoices.

Previous wording

We used $16.3 million to fund investing activities during the six months ended April 30, 2025. The Company used $19.5 million for the purchase of property, plant and equipment, which was partially offset by $3.2 million in proceeds from the sale of property, plant and equipment.

Current wording

We used $28.2 million to fund investing activities during the nine months ended July 31, 2025. The Company used $34.2 million for the purchase of property, plant and equipment, which was partially offset by $6.0 million in proceeds from the sale of property, plant and equipment.

Previous wording

We used $23.6 million to fund investing activities during the six months ended April 30, 2024. The Company used $28.8 million for the purchase of property, plant and equipment, which was partially offset by $5.2 million in proceeds from the sale of property, plant and equipment.

Current wording

We used $30.0 million to fund investing activities during the nine months ended July 31, 2024. The Company used $37.5 million for the purchase of property, plant and equipment, which was partially offset by $7.5 million in proceeds from the sale of property, plant and equipment.

Previous wording

Net cash used in financing activities was $19.9 million for the six months ended April 30, 2025. Cash used in financing activities included $425.0 million in proceeds from the issuance of the 2032 Notes, $375.0 million in payments for the extinguishment of the 2026 Notes, $53.1 million in dividends paid, $8.2 million in debt issuance costs paid related to the 2032 Notes and $8.5 million in purchase of treasury stock, which included $7.9 million purchased under the share repurchase program and $0.6 million from the purchase of shares into treasury stock in order to fund the employee tax obligations for certain stock award vesting and stock option exercise activities.

Current wording

Net cash used in financing activities was $23.8 million for the nine months ended July 31, 2025. Cash used in financing activities included $375.0 million in payments for the extinguishment of the 2026 Notes, $53.1 million in dividends paid, $8.2 million in debt issuance costs paid related to the 2032 Notes and $12.3 million in purchase of treasury stock, which included $11.7 million purchased under the share repurchase program and $0.6 million from the purchase of shares into treasury stock in order to fund the employee tax obligations for certain stock award vesting and stock option exercise activities. These cash outflows were partially offset by $425.0 million in proceeds from the issuance of the 2032 Notes.