Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 139

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 139
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                         | (160,375 | ) |     |   | (133,902 | ) |     |   | (243,985 | ) |
| Financing activities                                                 |     |                         |  173,807 |   |     |   |  128,471 |   |     |   |  206,964 |   |
| Increase (decrease) in cash and cash equivalents and restricted cash |     | $                       |   40,428 |   |     | $ |   28,486 |   |     | $ |   (7,753 | ) |

Please refer to the supplemental cash flow information included in “Note 19—Other Financial Information” in the Notes to Consolidated Financial Statements for further details. Operating Activities Cash flow from operating activities is primarily influenced by the level of revenue we generate and the operating margin we earn on that revenue. It is also influenced by the timing of working capital investment associated with the services that we provide. Our working capital needs may increase when we commence large volumes of work under circumstances where project costs are required to be paid before the associated receivables are billed and collected. Our management strives to negotiate payment terms that minimize the working capital investment that we are required to make in connection with large projects. Additionally, changes in project timing due to delays or accelerations and other economic, regulatory, market and political factors may affect customer spending and, thus, impact cash flows from operating activities. We typically require the most working capital during the second half of the year as activity levels increase in the spring and summer months and less working capital in the first half of the year as activity levels decrease and we receive final payments on completed jobs. Cash flows from operating activities decreased $4.6 million during 2024 compared to 2023. This decrease is primarily attributable to fluctuations in the main components of working capital, as detailed in the Consolidated Statements of Cash Flows. Specifically, net loss decreased by $18.4 million, while the benefit was partially offset by a $22.5 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 $27.3 million due to increased revenue and contract retentions and the decrease in accrued and other current liabilities of $37.9 million, approximately half of which related to the payment of contingent earnouts from acquisitions in excess of the amounts of the acquisition-date fair value of the liability. These changes