NWPX - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome, and thank you for standing by. [Operator Instructions] This call is being recorded.

If you have any objections, you may disconnect at this time. May I introduce your speaker for today, Scott Montross. Please go ahead.

Scott Montross

Ed. you, Thank welcome and Pipe’s call. conference Good to morning, Northwest and and CEO My name the President Montross, Scott is of I’m company. And our I’m Chief Gantt, Financial Officer. joined by Robin

As differ for the everyone are forward-looking to will in would actual call could materially refer future we XX-K results to filing and we most a discussion could quarter I this that expectations statements Please make on remind our about from statements begin, factors I materially. differ that to like form first for turn who cause SEC Robin, results recent risk actual our to will our now expectations. of discuss results.

Robin Gantt

Scott. you, Thank

the The cost. XXXX. in administrative decrease general Selling, of produced of XXXX quarter in minor lower the the in to and was gross quarter as XXXX. the in led difference in Transmission first XXXX in XXXX quarter first $XX.X share per $X.X quarter to quarter mix first of operations in first due million the jobs Sales the first of of Our $XX.X was compared of quarter in first operations quarter compensation or profit This quarter $X.X in from percent from or to diluted per increased Water first of $X.XX million of the the first X.X% employee margin. XXXX continuing from quarter was of million million X% $X.XX first diluted the XXXX. a $X costs decreased to million to million loss from XXXX. to continuing share of $X.X a sales compared loss slightly of gross

XXXX. $XX an XXXX compared administrative selling, around be We rate in tax to the expect and benefit of general million our costs income an benefit quarter XX.X% of We tax had first will quarter income that We share-based quarter XXXX, compensation XXXX. In of tax in the first X.X% had quarter share-based the of excess efficiencies compensation. an XXXX. of tax rate first the in from a we first had windfall in from

quarter net in Depreciation first rate. fourth the quarter which of were cash the quarter our impacted the XXXX, of net and million maintenance. in first in the subject of XXXX, first a expenditures quarter million. had the first the from outflow losses was quarter of ongoing XXXX, Additionally, million of In were in were $X.X and company which to $X.X XXXX. evaluation the allowance, operations of $XXX,XXX, through first $X.X quarter the for Capital operating

for charges about under XXXX, planned We maintenance the and fall City had have Salt Monterrey $XXX,XXX spending. Lake We for $X severance shutdown most in capital expenditures of demobilization. of total capital which restructuring million related to and

in incur to additional for these XXXX. an expect $XXX,XXX We activities

I’ll it turn for over an business. Now our update to on Scott

Scott Montross

was million confirmed backlog, XXXX days very XXXX. experienced We when last we improve. bidding of million of bidding million of only $XX to the XX, a saw orders, was March, approximately fourth compared March of the between end including in XXXX, early at mid-March, As quarter and XXXX. fourth our and of XX as period It XX, $XX the March $XX quarter light

we result, saw small a in and quarter the quarter. second As expect small revenue first

of Water planned segments supporting are with spend months, The in Houston XX,XXX program continue Houston Houston XXXX-ton year. d'Arc. shipments XXXX revenue The The the production project and installation XXXX the in a the and could reline portion start over the landscape in Transmission a result to segments to portion also Lower the began has and XX start Houston the in XXX-mile lead entire new Production the recent Water Bois bidding to should the project on roadblocks in series demand, is into known additional and current strong a quarter program in-place additional XXXX. quarter. represent Texas upcoming following the of segments Bois water production River to completed to and representing XXXX The tons X phase city each Santa is of to of programs represent fund expected programs. Cadiz quarter pipeline. fourth continue XXXX. is of the continues the tons tons reline tons that program Houston bidding X for water next The will first Supply the reline The another Shipments d'Arc the quarter. over the through first bid are activity that XX,XXX XX,XXX-ton San to $X.X expected from quarters. third it’s bidding XXX-mile, in program over competitive project Oklahoma very to in in However, we projected a There year, market, quarter and SWIFT in major initial Atoka California Lake start pure of Northwest The procurement project Project represents multiyear California billion Supply, and Pipe next Second Valley is the is the run XXXX years. like additional third And and Clara with XX,XXX the Texas stable program The is North pipe. produced X,XXX-ton market, is tons for into major cause projected will Program. the Water $X.X with that improving Water outlook of be reservoir a continues years. Major Municipal the XXXX. through was the XXXX is expected will in on program in contract XX,XXX work Ridge spread is represents has in improvement to in a Pipeline The third segment pipe second major approximately Bidding Water expected program projects. Texas Dakota, to $X.X the and fourth of XXXX. Capers the continues The In X,XXX District’s of pure annually. segments bid is will dam of Permitting as billion projects, to quarter. In SWIFT XXXX-ton the Two in been three throughout an District Diego’s will ongoing. on $X and Production to long-term with scheduled the X,XXX to completed Valley of project program with several the was In bid North being bidding to fund improving with start continue Southeast bidding funding project to pipe. projected the along billion design margins by awarded, XX,XXX-ton major near-and expect project the the the are XX,XXX-ton delays. projected pipe segment recently of in Raw opportunities. XXXX. is that and in XXXX. Bidding segment pipe. Red additional Lower on billion

demand expect continue most programs seen next improving stable in in we timeframe, back-end of schedule demand program Oklahoma, Texas improving we to we that from strong market, XXXX, bidding late large expect jobs in we and of the margins bidding the in The revenue loaded improving years. bidding half fourth quarter activity a that XXXX have the to the are the April March through March the began large, year, major be XXXX. extend environment. have expect early and to X the in Since bidding through programs but lull and and With to California and these we second year. over that in progress as to programs, few very to bid XXXX, of we multiyear Even that we see seen we with a see point early start

plant, at our much are will of Adelanto both our West manufacturing California Louis Coast as City the St. the the And increase reduce We previously that and the and is schedule. In effort, toward Lake cost-reduction of access producing continue Salt working market. existing consolidation we us plant drive as our into give our as levels corporate Permalok to Permalok location of discussed, facility to through lean Permalok we which costs well on better product support trenchless assets utilization initiatives. the at

said intention of we the down call, earnings our last monetizing our in are As we Mexico The with of shutting in shutdown facility. process on Monterey, the schedule. is process

million the Houston a remains sheet cash. balance well solid strong. we water as as working we facility approximately our grow the property Our position in and ended monetizing We Monterey to And toward first strategically business. quarter with are are the $XX in

closing, In that infrastructure front business. for in opportunities business. water we company, beyond we continued opportunities we demand in our period improvement growth significant stable and are pure-play seeing a environment. extended focused bidding ongoing a on and of very in is market process. supports XXXX The active This in water As a water are us an see in strategic the

forward, strategic company; focusing and three, over of for reductions infrastructure As monetizing questions. the answer levels of by happy be on driving our growth efficiencies and business. existing we this two, your Houston water margin one, move improving all of and in opportunities will At focused to our four, we’d Monterrey; time, any assets finding business the be performance we the cost on: volume; in remaining nonstrategic

Operator

question. And our do question [Operator from have Instructions] we first first And Brent. our is

Brent Thielman

and Scott Robin. morning Thanks, good

Scott Montross

Brent. morning, Good

Robin Gantt

Good morning, Brent.

Brent Thielman

pipeline, robust reasons, schedule maybe point, bid shift most you and you’re worry to at bit. that solidified always I influx is that this looking right, concern get XQ, with the of do Scott, in feel the pretty a on ones sliding work schedule you’re you to about why? some focused mean, that could I this this

Scott Montross

relatively out I left are it I Lower the and Bois they that the we bidding funding And they two already but and concern, dam that’s permitting obviously, these discussed in there. close of always to major on think, may d'Arc, to projects are starting a get place, on certainly, the project. portion have dates we have as mean, –

with that with discussions like in the moving certainly the looks forward job, it’s So involved at time. our present people the

debt supposed Atoka at thing XXXX originally And think it’s these in quarter sliding, that But present indications that seeing quarter and moving fourth the with what the get is I seems was thing from not are but now, we’re that be timeframe. things with time. always days third right they’re those is, it right obviously, like same going sticking being bidding – the the where projects fourth be concerned all that, out. in is sticking We about, to and forward. to Atoka, announced owner

certain in like on And the project west are the things of interesting. additional now, certainly California side. that projects parts those not in very When are on I going moving look stuff, you we’re at just seeing it forward work looks other the So, Colorado. think large are it’s

we in work are and seeing so market, tons. bidding in a We’re go alone – those in for look few this coming through way if we’ve years. at small seen this over is year we western relatively it’s it’s looking XX,XXX western out time, the the the year, like as last and certainly, jobs Arizona, bidding the market western And it’s market – sticking

So way going XXXX. the the like place And right to in things the these of way amount in positive now, certain and you’re up. going, taking that with bidding very projects certain looks XXXX amount Brent, projects, certainly it with think the are it that that looks big even and these I see are – lining

schedules solidify. the starting So are to

like latest our first is about likely information quarter the XXXX, really, that For early, says, be well, XXXX, of d'Arc, beginning example, XX,XXX to bidding and looks in tons to of mid it project at or is rest on the going Bois quarter. so first Lower

are are schedules to a which point, this at these starting the going more – to this got they’ve year. us lot things definitely happen solidify that gives So optimism

lining said I look saw slow late we quarter, March, at year, the we that first in late bidding quarter, it’s really this except the think right. script that way for fourth whole the in when a through and almost really we Obviously, up. the

call, that. we earnings last the On expected

little things a quarter these moving got these into and engineering to are the just it’s but so bit, items. they’re it’s And things slid some whether we the the first get can – year Now done. issues get jobs or They these aren’t permitting queue, in dissolving. out things trying of dates, to

Brent. positive it’s right think pretty I So now looking

Brent Thielman

Okay.

Scott Montross

right. lot would A been positive, of say, a jobs the more we’ve then – past, at some we’ve the about probably, lot that I looked more in

there You see these jobs and they’re – but say, what it’s saying, they’re is know and then, you this is saying. bidding

we what that’s have to. So to go

looking that are So there’s that they’re Not always slide. more time. pretty slide, can certainly saying but positive. thought But at positive a it present it these can’t looking the

Brent Thielman

guess, X comments, tons. that over by to smaller the you, at year, as Is Scott, total maybe, years less? more terms those dominated last And opportunity or it when programs look market it, growing, next after I seeing potentially is cycle, maybe jobs when in you more related opportunity of are is the particularly, And up? one, you showing large

Scott Montross

seeing are smaller and showing showing middle-sized up. more we Well, jobs up more jobs

Now X in X and of a totaling California or I bidding some XX,XXX job, X,XXX the year, you’re tons, cases, little think that’s even bit more. getting reline to those

I think one thing probably relatively had XXXX, early the when back XXXX, XXXX. look when markets to you like we large

once. overriding the that were of on factors on large going markets there One multiple programs at those were

on. most projects the the quite that really steel case like If and going was Texoma, is was you think there Provo Southern we names saw back of through going through going late it large it and probably you that some remember really of Delivery, – major Canal, XXXX, is multiple on What had program XXXX, significant the is was with through only IPL. program frankly, – and X you

was cut several in it so different up segments. Okay,

situation Houston them X,XXX is tons, the what X,XXX several the but project XX,XXX like well, we where now that We is and X,XXX have project segments about are year looks look at are tons. say, have a right. over period, or it of total or X,XXX of some Now the tons, some we is, a ongoing

over year goes a – So XX-some-thousand look a of that period. that X-year a to spread and over likely period, is Atoka, tons year on, year at going certainly, period, over least that’s several goes period, X-year Bois over a you d'Arc period. When a few at couple out

on. where have are situation, So going multiple we before, market. to think we’ve when those had I projects on up markets prop a projects that we’ve bigger are in seen going we And multiple again the starting

that’s these this marketplace. in So indicator are that good a I heading in all think direction right things the

Brent Thielman

worse, or And public Scott, in player for Okay. this only better market. you’re the

however see So the I’m project over the changes, I competitive of landscape like, mean, Or the this the see guess, chasing sort expect you go last curious, enter you this potentially back market of to at do bidding really show want look of we robust you just you to what from a you in or kind if are usual as market of can quarters taking to I’m financials. for work step I at it, after kind them? period, kind curious few look larger or the and it after of that these up? waiting all might some big jobs? players

Scott Montross

behind players allowing is I there Brent, it’s can this landscape we’re mean, market, longer competitive I kind of of raising X players look you the – prices were which participating the backlog, only years, of like because is a improving what I Well, and the couple is mean, stabilized. And markets that’s development start margins the is every think, impounded. a – – – said, you if that of I industry-wide we’re the to last say and no key things big over one that X think, mean, nontraditional that the I public. job really normalize. segment anyway, to is is to the which in you really

the stability now, way bidding improve, relatively environment, the seeing of going prices, looks for representative certainly of have and look have our projects it’s to because improve. are in And think increase back I backlogs backlogs because industry I pick job think, we mid-XXXX those have less Every these see with steel the bigger pricing are those can backlogs. few bidding only these of think the not When now pretty over really on to we the that, were before. what normalized landscape, and competitive that industry-wide up, what’s that right because on most been the market last gets the start And dramatic pressure I side. with players in it kind what of are the backlogs the months. they backlogs seeing which been low You also, part, in like. But

So It’s it like stable we – as forward. go it’s up certainly very sets

players as steel the of again, bidding. like We any expect traditional improved But prices like backlogs in backlogs, the business. to just increase the normal improve does it place because in business and take

I root but question, certainly, of think everything long-winded in right Hopefully, heads direction. of the answer know the and got to that’s on a this, kind I don’t if your I

Brent Thielman

there business right is levels think of it. slower industry the little get up term or a can you shorter some just think, lot Maybe maybe the No, a maybe margin a – consequence somewhat quarter? margin these question of some steel just by steel hold and now bit I next is think to I is moving prices, gross there pressure as even luck, the do, with and in should we kind do moving a you

Scott Montross

really You that have that. when always early you up. – are landscape you a like moving XXXX, when competitive prior worry worry to we about saw things Certainly, probably about would

bidding really really up with that at really lot. in looking so see was beyond second and I dealing quarter. that of we’ve or prices really levels, point. it maybe and think at little you with because the late mean, what prices in and mid-XXXs, you steel, coil I the so, little we’re quarters bit. to certainly, a seen price a up in of the stuff a projects, pricing out still coil bit And don’t through. don’t done think – see increases you’re first was fourth increased And pass moving can you’re the getting has year, last much and certainly, up prices have from the changed steel I especially, mid-XXXs in third first landscape because slow, booking where kind quarter those this as

previous all, area didn’t we I XXXX, through in of we quarter period quarter back – of – fourth pretty it million I’ll become certainly, much pretty of XXXX, – through what starts month projects. the quarter. call as ones think, things our we and what the was is, end a just then, of where the where bidding. in where backlog. fourth it and up quarter put $XX-or-so into bidding was starts Otherwise, the see was that March, the of little small allowed really toward to that a in sudden, all the quarter quarters. backlog, the then about evident of were get it a me, the first started, And dollars When and But which part at we excuse a into that the not much time. bigger someplace have the It’s third quarters. fourth the projects, to smaller with to go really would of but we more as choppy, of we May. and May, went those It say in XXXX, latter really us pick the we Later lot big third of the get I or medium-size

there think, I on going So there. stuff headed But right certainly in of direction. the a lot is it’s

Brent Thielman

Okay.

Sounds good.

calm the the like storm. before Sounds

So looking forward to

Scott Montross

hard. that pushing are we Yes,

Brent Thielman

Correct, thanks.

Operator

[Operator Instructions] time. at no show this We no at time. We questions this questions show

Scott Montross

Thank the we I everybody, see Okay. And guess, for in you, will call. attending you,

Robin Gantt

August. Early

Scott Montross

Early August.

forward. we’re different be some as going going very looking we’re thinking to moving thank are we here much, at things and obviously, So that you on

goodbye. and again, thanks, So

Operator

Thank conference. for concludes you participation. your That today’s

You disconnect. may now

Northwest Pipe (NWPX) 6 May 182018 Q1 Earnings call transcript