Warrendale, Pennsylvania-based Linback Holdings, a company that maintains and revitalizes HVAC, electrical and plumbing infrastructure in buildings, has seen its stock price double in the past year. A series of small acquisitions funded by operating cash flow helped, but so did a very clear approach to financial management.
Leading this approach is Limbach CFO Jayme Brooks, a certified public accountant who joined the more than 120-year-old firm in 2019 after 14 years at Capstone Turbine. At Linback, Brooks strengthened the company's balance sheet, positioned it as a competitive advantage, and played a key role in converting newly acquired companies to Linback's systems and processes.
Our Katie Kuehner-Hebert spoke with Brooks about his current priorities, including improving margins, the company's cash-focused culture, and communicating with investors.
How do you think the CFO role will evolve?
I have been the CFO for nearly 10 years. Looking back, CFOs were swimming in their own lanes, with roles previously focused on finance, budgeting, and fundraising operations. The role has evolved and today's CFOs are involved in nearly every aspect of the company. I think this trend will continue. I've heard the CFO described as the future chief executive. We always look forward to it.
How did you build the balance sheet into a strategic advantage for Limbach?
You need to start by changing your money management culture and building a healthy balance sheet. My mantra is “Spend it like it's yours” and “Every dollar counts.” It helps people understand that (1) every dollar adds up, (2) they can leverage their purchasing power, (3) there is efficiency at every level of the organization if they look for it, and, of course, (4) It's about getting it. There is an important link between effective money management and business performance.
We currently have a strong balance sheet and a favorable revolving banking structure that supports organic growth investments and strategic acquisitions.
What are you most focused on right now?
Work closely with the CEO and senior leadership team to execute growth strategies including organic growth and strategic acquisitions. When it comes to organic growth, we are moving our business towards profitable building system solutions and working directly with owners. [of existing buildings]. This required significant change management to retrain people from construction jobs to sales and service.
Additionally, we have a disciplined acquisition strategy and have completed three successful acquisitions in just over a year to expand our footprint and service offerings. After each acquisition, we conduct a post-mortem to make every aspect of the process, from sourcing to due diligence to integration, more effective and efficient.
I also spend a lot of time on investor relations, which is especially important for small-cap growth companies like Limbach. We have invested time and money into our investor relations and public relations programs and have seen great results. We need to consistently tell honest stories about strategic business transformation to help investors understand the company's potential and how it creates shareholder value. That's starting to be reflected in our market capitalization, which has increased more than 130% over the past year.
What do you find most rewarding and rewarding about your job at Limbach?
The most challenging part of my job is staying ahead of the company's rapid changes and growth. Working for a fast-growing small-cap company, I wear a lot of hats. You have to roll up your sleeves and study every day.
The most rewarding aspect of my job is watching the people who work for me learn and get to the next place. I love delegating authority to someone on my team and seeing them perform well and make a big difference for the company. It's so rewarding to see people grow and take on more responsibilities. I see my role as taking the people who work for me to the next level and preparing them to someday do their jobs.
