How does the adjusted net income figure compare to GAAP net income, and what adjustments were made? | LMB (Aug 06, 2025) | Candlesense
LMB

How does the adjusted net income figure compare to GAAP net income, and what adjustments were made?

Comparison of Adjusted Net Income vs. GAAP Net Income

Metric (Q2 2025) GAAP Net Income Adjusted Net Income Difference
Amount $7.8 million (or $0.64 per diluted share) $11.3 million (or $0.93 per diluted share) +$3.5 million (or $0.29 per diluted share)

In other words, the company’s adjusted net income is about 45 % higher than its GAAP (Generally Accepted Accounting Principles) net income for the quarter.

What Adjustments Were Made?

The press release (the excerpt you provided) tells us the adjusted net income figure but does not list the specific line‑item adjustments that were used to reconcile GAAP net income to the adjusted (non‑GAAP) number.

Typically, a company like Limb Limbach Holdings would make the following types of adjustments when it presents “adjusted” (or “non‑GAAP”) earnings:

Typical Adjustment Why It’s Usually Made Likely Impact on the Adjusted Figure
Stock‑based compensation expense A non‑cash expense that can be volatile quarter‑to‑quarter. Adds back expense → higher adjusted earnings.
Depreciation & amortization (non‑cash) Recognizes the allocation of capital assets over time. Add back → higher adjusted earnings.
Acquisition‑related costs (e.g., integration costs, purchase‑price allocations) One‑time charges related to acquisitions. Removed → higher adjusted earnings.
Impairment charges or goodwill impairments Write‑downs of assets; often considered non‑recurring. Remove expense → higher adjusted earnings.
Restructuring, relocation or plant‑closure costs Usually viewed as non‑recurring or non‑operational. Subtract from expense → higher adjusted earnings.
Other non‑recurring or non‑cash items (e.g., legal settlement accruals, tax adjustments) To focus on “core” operating performance. Remove → higher adjusted earnings.

Given the $3.5 million (or $0.29 per share) uplift from GAAP to adjusted net income, it is reasonable to infer that the company’s adjusted figure excludes a combination of the above types of items. The exact mix (e.g., the amount of stock‑based compensation, any acquisition integration costs, or other non‑cash adjustments) was not disclosed in the short news summary you provided.

Bottom‑Line Take‑away

  • Adjusted net income ($11.3 M) is significantly higher than GAAP net income ($7.8 M).
  • The difference ($3.5 M or $0.29 per diluted share) reflects adjustments that typically remove non‑cash, one‑time, and other “non‑operational” items (such as stock‑based compensation, depreciation/amortization, acquisition‑related costs, and other non‑recurring charges).
  • The specific adjustments used by Limbach Holdings for this quarter are not detailed in the excerpt; they would be disclosed in the full earnings release or the accompanying reconciliation table (usually in the “Management’s Discussion and Analysis” section of the 10‑Q filing).

If you need the precise line‑item adjustments, you would need to look at the full press release or the company's Form 10‑Q for Q2 2025, where the company is required to provide a reconciliation between GAAP and non‑GAAP measures.

Other Questions About This News

Are there any specific one-time items or non-recurring expenses affecting the reported net income? Is there any change in management commentary on market positioning or product pipeline? Did the company return any capital to shareholders via dividends or share repurchases during the quarter? Does management provide guidance for Q3 2025 and full-year 2025 performance? How did gross margin and operating margin change compared to Q2 2024? What is the company's free cash flow for the quarter and how does it compare to prior periods? Is the increase in net income and adjusted EPS being driven by volume growth, pricing power, or cost reductions? What were the primary drivers behind the 16.4% revenue increase year-over-year? How does the EPS growth compare with analyst consensus and expectations? What is the current debt level and any changes in leverage ratios? What are the expected impacts of any macroeconomic or industry trends on future earnings? What is the outlook for capital expenditures and potential impact on cash flow? What is the current valuation multiple (e.g., P/E, EV/EBITDA) after this earnings release and how does it compare to peers? How does the company's revenue growth compare to key competitors in the same market segment?