Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 138

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 138
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 is primarily attributable to a smaller net loss from the business adjusted for noncash items and fluctuations in the main components of working capital, as detailed
in the Consolidated Statements of Cash Flows. Specifically, net loss decreased by $36.2 million, while the benefit was partially offset by a $25.7 million decrease in cash provided by the effects of changes in operating assets and
liabilities. The decrease from changes in operating assets and liabilities is primarily attributable to an increase in contract assets of $21.8 million due to increased revenue and contract retentions, as well as a decrease in accounts payable
of $22.3 million due to the volume and timing of payments to vendors. These changes were partially offset by other operating assets and liabilities, primarily a $14.3 million benefit from changes in accounts receivable due to the timing of
collections from customers. The impact of adjustments for noncash items was mostly offsetting in nature and is detailed on the Consolidated Statements of Cash Flows.

Investing Activities

Cash flows from
investing activities primarily consist of capital expenditures, proceeds from investments and payments for acquisition of businesses.

Cash flows used in investing activities increased by $110.1 million during 2024 compared to 2023. The increase is primarily attributable to a
$105.4 million increase in consideration paid for acquisitions.

Cash flows used in investing activities decreased by $26.5 million
during 2023 compared to 2022. The decrease is primarily attributable to a $14.3 million decrease in consideration paid for acquisitions and a $9.2 million decrease in purchases of property and equipment.

Financing Activities

Financing cash
flows primarily consist of the issuance and repayment of short-term and long-term debt, debt issuance costs, contingent earnouts from acquisitions, financing lease payments, and cash distributions and contributions to and from Legence Parent.

Cash flows provided by financing activities increased by $78.5 million during 2024 compared to 2023. The increase is primarily attributable to
a $410.0 million increase in proceeds from borrowings, partially offset by the $300.1 million increase in the cash distributions to Legence Parent and the $27.0 million increase in the payment of contingent earnouts from acquisitions.

Cash flows provided by financing activities decreased by $45.3 million during 2023 compared to 2022. The decrease is primarily
attributable to a $41.2 million decrease in proceeds from issuance of membership units, as membership units were issued for cash