NWPX - Earnings call transcript Q2 2018

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Operator

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

If you have any objections, you may disconnect at this point. And now I will turn the meeting over to Chief Executive Officer, Scott Montross, you may begin.

Scott Montross

Thank you, Grace. to conference welcome and morning, Northwest call. Pipe's Good and CEO of name is company. president Montross, Scott My the I'm I'm joined by Officer. Robin Gantt, or Chief Financial

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

Robin Gantt

Thank you, Scott.

gross second Transmission Our the compared same or diluted second percent the share second which million share to of $X.X a had income of to was mix tons in X.X% in the Water loss in the less of of of was swing XXXX, $X.XX XXXX the per of second operations in margin. from second Sales led in quarter as million million continuing quarter the were from $XX.X operations compared $X.X our XXXX. second XXXX. diluted quarter gross proportion or quarter in $X.XX XXXX. X.X% loss in a quarter We second of quarter value-added was that to sales of a the per greater continuing the level quarter loss product as of in

Depreciation by our recognized rate as the share-based well second XX.X% the the that's were rates of to compensation the $X.X higher This months acquisition and our X cash the of the in by through In quarter was income an the $XXX,XXX. the first of second We $X.X second because general XXXX. rate second of $X.X of quarter XXXX. had In increase margin the million million gross a for $X.X than benefit tax to were cost. the million tax second employee expenditures from capital in was offset quarter, about costs XXXX, months Selling, to ongoing In compensation. from Transmission pardon of of was tax to XXXX and of million, lower first due in of the in lapse which as - first X.X% addition, In XXXX, in benefit of partially increased windfall X absorption. by provided estimated quarter impacted of Capital of in XXXX. an X maintenance. in in tax of income XXXX quarter evaluation due decreased me, was of impact the XXXX the favorable benefit a to quarter limitations. cost was activities cost current of allowance on rate higher income and quarter changes related the XXXX by months compared our about $XXX,XXX first was statutory reduction operating fixed second Group, depressed of administrative overhead million statute Water Ameron the quarter rate $X in

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

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

next on XX not it believe as estate than balance the We likely months. complete is a sale we our in sheet, Houston as the have will more be held-for-sale classified that real

yet ours. that balance Therefore, had is their have comparable numbers We standard this Water earlier announced of on are not we as method implemented backlog we Unfortunately, and delivery point Group. recognition compared to week, of margins, acquired provide the Transmission to financial using information our As Ameron comparable and they are revenue not to us. overtime. to new the income, recorded revenue we revenue, unable Ameron

and pro with numbers presentation. in days. received providing information we will be to will forma about that We financial our be historical have to required conform XX And adjust the we

here $XX with in However, backlog are investors revenue was in time before an XXXX, of order idea net about was million At were provide was million. of to preliminary acquisition, Ameron's EBITDA negative $X.X With some are the loss the operating our $XX $XX million $X.X and and size, In assets adjusted: $XXX,XXX. approximately numbers million. they million of depreciation,

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

Scott Montross

that the group opportunity Pipe's business. cost concrete pressure companies have acquisition existing of capabilities, administrative the for acquisition a steel with represents pipe Transmission pipe brings in consolidation pressure concrete the as Northwest Our Water product synergies product history and well diversification. significant as Ameron reinforced long two both pipe the Transmission Along to of Water creates the This and portfolio. operational

of the combined of strong ongoing the a All on these have company. potential positive very earnings impact

orders, June backlog, June confirmed very activity through in bidding XXXX. approximately to late of the $XX our end at to $XXX was and XX, fourth and We compared started as of XX, including The million million bidding the March light level XXXX, of very from As quarter million experienced pre-acquisition backlog grow of the $XXX first resulting late XXXX. XXXX March. quarter only of

and As we very small second a poor revenue quarter result, results. saw

will in what recovery will slow our periods see in discussed, second which saw be the we we quarter. and previously disruption, we've of the As is market

The program we have improved to a in demand margins second resulted almost Pipe years. months in in in stable and improving strong landscape and improving continues be with a backlog quarter the the work competitive the bid and revenues to activity year. of causing will that X has The XXXX. lead scheduled bidding to bidding pre-acquisition activity to highest half XXXX bidding dramatically the over have the we seen Northwest along for second major However, very improve next several business

through projects. Ameron multiyear current acquisition. of following series the with ton approximately of from The the In represent late continue procurement continues Supply, pipe. Houston project Ridge project project X the to that of next billion XXXX an Texas quarter, the over XXXX, the the of tons a shipments The to tons is could tons Lower Production pipeline, Lower reline XX,XXX-ton in the spend segments Capers represent program project being In will XXXX because The fund production first major the pipeline. by to Municipal Houston is was bidding major Bidding will pipes. and SWIFT District reservoir of the like western Raw projected funding X,XXX are remaining is start The of over XX,XXX XXXX. as North to program the second projected d'Arc Capers outlook five program Houston XXXX. and the Southeast permitting Bois segments for that pipes. and XX and start additional supporting In into in market, There on segment the project through XX,XXX the installation Transmission of an of of expected Ridge addition, year-end. represents a project XXXX is will Water completed additional d'Arc. on continue project XXX-mile upcoming through programs in $X.X year. Houston is and increased planned to this this pipe market, third Bidding see backlog are place also $X.X will projects The and Bois of XX,XXX Water revenue a Water we quarter in is and began billion and Texas produced Oklahoma California segments in expected program reline spread years. third Northwest known is Pipe Atoka years. in continue Houston quarter with

are segment city of XXX-mile, In XXXX. Valley work issues additional Red Cadiz project quarter Diego representing additional The facility, represents tons, job in the are pipe, the for plant. bid producing delays. is produced San our track that is XXXX second Water billion on at Adelanto, segments a continues Santa The San is is face XXXX bid water Water Two pure bidding reliner We of California project project County is North $X.X of represents for expected SLRC contingent Clara three with X,XXX bidding X,XXX which to on our River X,XXX-ton third program program start billion year legislature program of XXXX which XXXX. to to X,XXX tons quarter in X,XXX Diego's is in XXXX. The will to tons continues is and XX,XXX-ton of XX,XXX-ton $X quarter for the initial program tons. that approval, reline first resulting annually. The Supply District's XX,XXX Valley Dakota, January pure state latest reliner currently a water each which the a being job at program. of Mexico The upon set

in continue three these few demand programs expect late a we a programs loaded improving we bidding And but XXXX, year last see through strong and since United first the demand Even quarter for programs, very of States the next have bidding are most be activity, years. With the stable back-end that of we multiyear very low with the seen to bidding Texas and we in the to environment. year. continue to the large, Oklahoma, Western expect XXXX major

of acquisition to expect to the With and that this bidding point in of very to accretive some Water program as the we approving improved indicators be see all the bidding margin months and start Pipe. jobs and revenue began take challenging progress in The time Transmission a half that second we schedule March Ameron will large late XXXX. some year, the to Northwest carve-out will integrate and to through we Group, for be

a positive to Northwest and the is our provides creates serve offerings additional administrative potential XXXX environment. In better market again, with acquisition, we us major that business. expected in cost strong this of product closing, are earning continued supports beyond, on which and have a bidding water platform, However, front improvement to we extended our synergies, opportunities Pipe demand of ongoing significant significant customers impact operational in and see time in for stable period in business. seeing the of an The

we of reductions and the Transmission this Ameron At efficiencies assets Group; cost Houston we'd the happy any questions. driving remaining will of by on answer to monetizing business quick nonstrategic One, over be levels Monterrey. performance the of on: company; in focused and and time, at two, forward, be integration move your we efficient all margin three, four, a focusing volume; of As the the improving and Water

Operator

Thank you.

the of [Operator We will now open. Brent. question line now coming Our your first is session. Brent, question-and-answer is the Instructions] begin from line

Brent Thielman

morning. Thank you, good

Scott Montross

Brent. Good morning,

Robin Gantt

Brent. morning, Good

Brent Thielman

backlog I turn into this to XXXX guess, start of first revenues? or when now, the question, I and that issue to the does have mix when year? some some the of push you the to - back-end big this resolve backlog guess, Scott, does Does begin to weighted

Scott Montross

certainly, now, have think going impact I we third that's No, you the look quarter. at what the in to when positively backlog revenue

Looking had quarter, out, think I well that at second backlog. the getting we a very

since We And of backlog we really very week led In the until here supply of that of to announced slowest low the project get March. I've fact, really didn't - overall last production. one seen with I've that project southern - the the the end been the to March. backlogs that

We in getting expected supply the the running to had of second with half plants. able delays some job southern be to to we be that raw materials but transportation-related June,

we that in So run any of couldn't June.

amount due could and the production was lower running where really was down that basically under product the value-added were small a result And generation, that worked year. Lake. this bunch quarter. cost. second Plus, margins. that. revenue. hands a an things added. low we had And Salt big we on lot a going a There's margin. we on had was a impact that Very price in production of significant that had we pretty large low low impact of backlog gross were certainly, shut and and we the we've levels and was had the also low mix that that also, absorption Also, what second the But lot revenue very the of our we a a that, amount product things and extra shut down the Monterrey, mix and on through revenue cost as first we that had to large So half on value on had get pretty in hours in Obviously, the a that fabrication impact selling very think of the of of for associated of the relatively of with I a had fixed quarter

that of and on. I backlog quarter, $XXX backlog lot at really question, there's sitting in really So biggest Brent, to the think, point. the had as backlog going relatively plays third all we the a million thing in is that the time. that crux of back a the quarter financial at to that a of XXXX. we a And performance of in had the we've get we back of things work But the second run of to the on large of for third quarter going expect haven't long look since role this And backlog period largest that's your is end

is I pre-acquisition the, forward, Northwest what looking quarter we call, go for third the So the sound, pretty Pipe would business. as

We backlog. have the

We have We're the the quarter. in work for running backlog. third

we certainly, this in year. improvement good third to of expect So see some quarter the

Brent Thielman

on jobs? That's but increase steel hedge any impact? the these prices or the as concern company about perform prices, has substantial in ask great natural start there, hear. to given understand I'll and I to an you Just some

Scott Montross

really much steel we're - No, I - not prices. really that concerned high we don't about don't

fact, prices. doesn't we want prices so in good steel we've said the as bid. high it difficult But In it that past, we're obviously, stable steel to with make

not issue side. So the steel any having pricing we're on really

ultimately, in really time at I at out think not those of certainly, and the But come eliminated. made and to it looks to like is get it the a a country deterioration happened starting the coming We're seeing point steel are things those initially, line. Brent, far of price longer out much this are all in steel. imports least, but things biggest line. get lead pushed tariff this it sudden, the lead thing, times got issue effectively into a rolled kind is What pretty of

of jobs So and much have to large now say, bid worried steel it I as we are as as would the between really And I we're the much you guess, more a in we jobs. not of about as year. steel pricing the really the changes what know, it pricing amount obviously, end violence difficult makes coming because

probably for of there'll d'Arc the that to Bois area and think just Atoka, bidding now I to in bid and the expect tonnage year, we of XXX,XXX of tons wise, additional from there's what on year this the end bidding of And the of go we the least - tons now, the some into we the then, or probably in right as year. on projects way other second at schedules another next see there's year. XX,XXX part that of bidding be XX,XXX

Western think years, we've of on seeing, jobs of is been earnings all things see year. talking of things that that guess, a the come one we're this an biggest period about certainly, seeing bunch and we're to for time. So seen I - a we're over to And to starting that the these fruition the calls And several we've these a following improvement I in long market. that next

their the way that's think known in reflected reflected I it's or It's Ameron, a getting our - the in of backlog. getting that Ameron, company lot formerly measures as backlog.

of of So work us substantial there's work another amount amount call, then, bidding. substantial I a, a in and now right of what would front

frankly, market quite year Ameron starting we're think exciting. as as I is we through about the is this but acquisition, shape way - is go the obviously, up excited that just this this So to very, very

year. So of in I think there's stuff front some good this

Brent Thielman

or performance it, the that Okay. really can black you've you without you And significantly guess there market as thanks them to into One, questions things you Two are you can do financial I specific think as for change. deal, there. financials this the bail out market? dive to But that'll there, need look Ameron. the I there I'll at understand get there Ameron in the looked the improve that, at do Robin,

Scott Montross

was this there. lot this I Obviously, there what everything doing the a makes there's - And going a we the it take one of and assessments is market think we administrative frankly, sense. at made good were cost negative of of at to with and heck a But strong - cash a lot negative we looked market on in market, operational at lot we Brent, Western States. when flow even as Yes, tried as looking of analysis, we've the could like still it said, I be made United as better. synergies a quite discounted to look, thing thing view looking as a

a thing. think I So it's don't market

I products additional another the expect are that get plus. and of it synergies gives, and the the lot pressure think I concrete that - around we the to a based company it two of pipe reinforced out think combined is companies, the concrete products the also the pipe,

heck years. thing this number whole just lot a synergies kind we've And of after some of is around there frankly, of a for So this of been thing. quite

the to upside come in and has we is this fruition this that tremendous. ultimately, certainly, So see

Brent Thielman

a as make a Water known I've on now small you And group the mean, this only Does the the effectively into follow-up it's consolidated West even I market, And there, group. pretty participants. in projects? Okay. player it's smaller of Coast Transmission

Scott Montross

of is, would player I other over market that period very of even are bid is long And and West the - out see Southwest. of other the West competitors that been in - say Coast the solid an Coast gets time. ongoing a California the players what basis. work good is No, on have there projects and on two we There out Western Midwest Western product actually

competition there the certainly, of available Coast. West lot is So that's on a

meet very it Now be And Coast. a for - we'll large a the we obviously, needs situation customer fantastic make supplier that everything the being on doing said, to customers. a will we we are focused and be in West very can the

Brent Thielman

you. Thank

Scott Montross

Brent. Thanks,

Operator

you. Thank

your the coming line David. David, line of is open. next now Our is question from

Unidentified Analyst

good Scott, morning. Robin,

Scott Montross

Good morning, David.

Robin Gantt

morning, David. Good

Unidentified Analyst

money traded Ameron. gross for say a digest to mean, guess you you on I this lot here. Atchison basis, Congratulations on I A acquisition. could

Scott Montross

- that's correct. yeah, much That is pretty

Unidentified Analyst

question questions a to an up some feasible and year? first you just really operating it could on that for further, show is the the little to Ameron ask restructuring take and try there, company, excluding I it Brent's excluding charges, following Before full profit

Scott Montross

tough Certainly, we've David, that very they to what calls, we that kind the generate first standalone. of improve of were, And as say, discussed be second quarter year, low of talked and with think think those - levels to quarters. I half would is it we I before, as generating out second the have profit low. to very, an in a I expect as the as were the previous in those as operating would

Unidentified Analyst

but Right, first half? make second asking the months, whole I about the I year? half the asking for was wasn't Can about the up six first

Scott Montross

I would think for difficult the completely for to little going make up it's first half. half a be second the to

Unidentified Analyst

And of do Again, couple million job the of company? a you $XXX to over Pipe Northwest see and bid an a the profit? environment years on company $XX make million $XX or opportunities $XXX based the for million the traditional next the revenue - operating be million, year

Scott Montross

$XXX at you look say, revenue about you then, would that I somewhere between Northwest the normalized Robin we've market. been talked the $XX you company side, million. million Yes, side, a that to a at of Transmission had Water on what in - historically, take $XXX - earlier, the And look a Pipe if million what been revenue Ameron on just and was below between that's

going little they've we've situation through bit Now that been muted is same revenue through. been the market that obviously, going a because

Whether at $XXX that's million of excess low So million, the relatively of we that seen you way the million to look something possible. on high certainly can to $XXX side a think, million. normal the market When million together haven't and long $XXX gets for in very market $XXX those over it a stretch, but all plus certainly, I that's add that's this the $XXX time, certainly period what's a numbers see to you normalized side. in in on

Unidentified Analyst

to questions. couple turn I'll Ameron of Okay. with a

or National I part it. they of have for part think business a ago; hundred that buy years? a some Did kept Oilwell bought that it you paid years previously they everything removed left when of many of Ameron in earlier dollars million it was or

Scott Montross

from they an a that say in the plant but other California, business. to that offshore-type in had oil bought comment What business Columbia. And understanding can't was I segment they which had a and with then, had Arizona. had epoxy for also it it it, plants my when plant. is SLRC a fiberglass why and Southern more basically business, in rig bought replaced couple closed on facility It they And would that it, ultimately I Phoenix,

definitely So the fiberglass. of with a epoxy piece big missing business you're that

- I in for think plant big Columbia But speculate really I that I'm and and NOV. bought in was it. they a you're America. part of to want missing Phoenix the South also a plant why a on buy And do again,

Unidentified Analyst

everything bought you left? that But was

Scott Montross

warm That headquarters down is in is plant staff XX A Arizona, bunch Yes, which Mexico across Colorado, is left we we our what bought California. you a there. in plant is miles from Mexico, house And in site it's very everything as formerly company, I'll is administrative Brea, - San Rio greenfield Cucamonga, very, the the then, there Rancho plant the that Southern it is Yuma, a California. along think for in brand-new I Tracy, which T-Lock, with it's of known of a That was Ameron. there which small is. consists Luis border - which in called California. probably bought tell in is California linings what

Unidentified Analyst

Okay, are assets? those all owned of

Scott Montross

we there, business we couple the that for small. occupy with lease potentially lease in California, The in an and is of Mexico May is expires owned The at property Brea owned that is Cucamonga of to a occupying Rancho a are property a say Robin The But next we property have lease. I - goes the an I years. relatively asset. is think, in on Brea is acres asset. Tracy, want that HELOC year. several

Unidentified Analyst

many Okay, assuming? you are that's good. employees How

Scott Montross

about in employees. to of XXX We're area somewhere the XXX assuming

Unidentified Analyst

of unions? any And them

Scott Montross

virtue it's the plant Mexico, is obviously, in that has union. of fact then, Tracy Mexico, The And a by union.

Unidentified Analyst

much more there be goodwill Okay, acquisition? Will two just from quickly. this

Robin Gantt

of gave, as the I purchase million that's were we and assets We're seem not to really wouldn't what price started allocation expecting, acquisition, see a net really I paid. expect about but that. haven't we lot on that course, goodwill the of towards $XX yet,

that So but we're just starting process.

Unidentified Analyst

and finally, up Okay, pipe? capacity that then, me in both annual great. just tell you concrete steel And can you're picking

Scott Montross

Oh, God. relatively is The steel easy.

think When to you ultimately, look all probably that. hey, capacity, tons up area XX a XX, with what XX,XXX. closer at you things bottlenecks each may be or like of the XX,XXX depends but total of It have XX,XXX job mix, on lining basically say shops, capacity facilities, look giant when somewhere in end XX,XXX total which I these the it's easy capacity can times practical David. you are is around coding because up overall it project different XX, you total running to projects end lot and going you through, which at rated in ultimately, tons. and and product your and It's is sometimes capacity, become

these if mix, total, So you've what means perfect XXX,XXX capacity for in area got them. higher. so and setups be when affect look of have are different the what different of probably product wise, you you say I somewhere - looking lots us in would But that may this and at things jobs total you're that in somewhat

a So it's out capacity of make really fully tough to rated it. look at anything and

Unidentified Analyst

concrete sense their much you lastly, up? don't picking new give you if us can of the lines much of capacity, is businesses how the business their other how of you're just then, a - So and have

Scott Montross

That's That's a a job. that's they've so to dollars a cash think concrete - Contra is got composite a concrete out further a project. Tracy on side. wet a at so question, of biggest But right now. are a that's up the looking reinforced in is really it's X. think lined job question canal several What pipe what coded [ph] It's first product. cylinder, that - part no can in project I've it's now. bar. working on other we're thing you a I I you Phase a bawrap end million right starts and have I with product would wrapped it's a then your But now the called dollar and job Costa mortar of the say several a semirigid plant mild the job on it's It it's steel tell a There's they the mortar, is Then got with that enclosure. thin pressure the right with they canal well, I answer right enclosure steel answer and a your with that called - million ultimately now,

with use a got you rate that when of in speed. end joggle cylinder the a less. at XX diameter fast up what because less a is it's This in very So you've small and probably welding welding lot diameter, cases, a product with it's and we steel relatively small applications is and look inches fast of a weld on steel process

project are that that city product. called that on the competitive want I'm several that's Antonio times near the Vista probably right project. probably those now top And going about San talked at diameters, off major to smaller of its bawrap is that head, product say, I on that of Ridge, is when of XX% So you and XX,XXX-ton look it's certainly, about a than we've more a steel going is, okay? So the big thing my

very significant would we Tracy we kind Mexico and product be what that, bawrap the of in. ability view, think is And one advantageous plant And of product both regions. certain to those pretty SLRC a there of out out our is in product plant. markets So it's of is make the regions Southwest. Southwest products that I a, with have bawrap at the pretty the steel lower competitive And diameters in

Unidentified Analyst

a very while. Well, exciting. it's after that Congratulations all been on getting an you've asset for

Scott Montross

point. but swing only in getting It's swing years questions that got brutal market excited about and pretty swinging to not I it after are the and think us appreciate tell takes we direction few in that a it's a you, - David, this looks pretty to things your exciting in pretty ultimately, front a bit the carrier, the little I'm while other way now. starting through Thanks, direction. But the Ameron I there been to right that going have of and we're some business we're at the like an aircraft acquisition

Unidentified Analyst

well, Okay, up. Keep job. good it

Scott Montross

Thanks, David.

Operator

you. Thank

is question of your next line line Our is Tom. coming now open. from Tom, the

Tom Spiro

Spiro Spiro, Capital. morning. Good Tom

Scott Montross

are Yeah, Tom, morning. How you? good

Robin Gantt

Good morning, Tom.

Tom Spiro

are how good, you. I'm

Scott Montross

Good.

Tom Spiro

Thank deal? they facility? that you and the the did congratulations come contact on it How the Ameron auctioning about? Did them? about contact process transaction. Did led A the to that What you? question was the Were you transaction.

Scott Montross

that. Well, what to we not seller And lineup that, year were Tom, oilfield services some everything about at a over is we ago in had think NOV's ultimately a that we've ultimately, continued is contact I would stuff. unsuccessful that only more because finally point you period them got know, say, and years we offshore point several Because as in did business a time. to I willing

- huge It's well-run business a and solid company that. So there very ultimately. large, to got a they've

the time Transmission that think I point, like road. think on they move on that more focused they that to I that obviously, felt it right And are was that then Water side. the at down

We a company. are this gone program water water becoming of multiyear We've focused on the through pure-play business.

balance with the able And the timing up on right was ability that. quite things sheet, we doing the that frankly, point, cash on to do that to the transaction. with be the the been to to, So we've had

really up, Tom, after being kind after lined to something. So everything - several a us of them really year period of after just do

Tom Spiro

was a paid time. that can simply to some going to time off. making persistence challenging? whether problems turning mentioning particular hinting Or your Ameron be around mentioned any with curious facility? in associated there some commentary that it is It's your I that acquisition, was you you and noting this going Well, challenge. are take were Scott, be you

Scott Montross

big the is A deal. for any think way. that's I million And big the a about Obviously, look lot for things size it's want of say right us. we for not well, at it's deal $XX and I this acquisition, us. really this think do of Yes, it's to people Well, the big acquisition us.

lot I sales operating think Ameron on people side. the the side, on good has a of

even it already talent there's Northwest brings that the to is the in some we company think going I which that have to make Pipe, stronger. real talent

laid well plants the of Transmission flow. out plants, when at both very think I you material look with them; these of Tom, Water both are

strength of in And for it different bit So a think company is They've good this we've a lot and management a situation of that it. maybe bring in certainly, But a for would there's four years. And been that I is last gone changes for the of the have through the for big these last acquisition they over really been because to think the it's company. stability really we some years. say changes stability slow in that we're a - And water water what to issue met things I to we everybody little the can some athletes want the of business, certainly I few us. is market's there add assets. be three the one

and system SAP our get a some through that And time. Oracle the, on program; a doing process different away. that We the of this more plants they're bidding on system I I we to than same the that all thing getting can, comment the shipment or ultimately, over the can on relatively think percent think doing reasonable while that plants estimating squared like can period a of our ours. take to process. ERP this getting we're that brought together amount the process things the a - and a is a other fact going in to system that's to fold looking going at a recognition take that Robin program. into them their with are is on And from the the it's of is time. do revenue brought than jobs Getting I quick something or of get complete all

probably Robin more comment that. on should I think

Robin Gantt

make, challenge. like it's the - certainly them, to It's history probably carve-out; stronger area, challenging integrating an a be Tom; just believe, in is Austin need to the certainly with more bit have it's were part. challenging than certainly, the that's not it's Tom, really anything. from of front of is they the area we even will company. sales be my integrated in so within what two yes, sales. a, the teach being not so It's backlog my But together companies long out yes, taking they it running, part that them got clearly, Yes, great completely But I a to bringing us, side, NOV, them

get we're transition that we as So this to quickly just can doing through what gearing as and hopefully possible. up for

Tom Spiro

will you be All eyes upon Robin.

Robin Gantt

Yes, way, Tom. sounds that

Tom Spiro

that from the up one too. question going up a third jumped plus so orders. just a about And to it roughly - lot from XX backlog, XXX And is confirmed or it's XX the backlog, pricing the I'm March I XXX, guessing think, backlog

big is as is to jump So QX mostly up tonnage? going price Tonnage dramatically well. from QX, or that that

Scott Montross

that we've now until is Yes, seeing when as that major when big at to is the quarter, up. we it. we've we say through were last in were to gotten add of look of supply end we at And would doubled jobs we're we've bidding looked was now got to end the I very only the that I of moving that more where announced. this. almost some think the actually March it pretty tonnage through the second continuing Southern job What Because week the March we you where tonnage it that are

would bid even going several were are I to it. that quarter, to There big Monday just had the tons We continuing jobs we were second major we we a successful So where is on in that job add on. on. say over

to and of on pricing. on to was think backlog is, side. it back of move Brent's the And what side goes positive the - some revenue So steel direction, kind I tonnage continues this in Brent question both the a

it's last Some what the had up a steel between of because year. XX% last project, of on look to of end quite XX% the the its year anyway steel cost has related pricing of almost if frankly, since are prices at probably XX% because pricing to from steel you impact somewhere

So that's had is pipe an lockstep the with impact moving up that. But on in pricing on it. also, products

and higher we're move backlog. direction everything pricing positive and Tom, a these really So tons on in resulting now, in then, staying

Tom Spiro

tariffs factors steel. the I imposition of driving the to pricing the is the of guess one and what that's done

go XX months, it that Why short-term wait that's at Why today? bid defer of on gone. looking Somebody You I project. nine, don't phenomenon a might cheaper? anticipate say, I out that Maybe six be a will well, six, that? might to months be much my should a of the lot sort

Scott Montross

no. Yes,

there's that a overall cases, out quickly, project. but been in lot at that's of the an some a away part is of thought of at thing least think that the of steel cost but tariff I not big beginning of this of been thing go relatively a could

of we're if aren't quite into a frankly, have now projects. of just to are delay The lot up funded a going was say couldn't but things delay, even Not it So comes some and that to and real these projects forward. that that a point been play, the are the projects this away. moving cause seeing it

I that with delay So delay seen on to much of that. things Certain any that yet haven't but know too of indication front in of what's don't a we're could going see we us.

Tom Spiro

great. good I your luck. Well, appreciate that's comments and

Scott Montross

Thanks, Tom.

Robin Gantt

Thank you, Tom.

Operator

phone. you, speakers, Instructions] the [Operator At not have do time, this we Tom. over Thank questions any

Scott Montross

questions that at there don't this other is I any think Grace, Okay, point.

and are Ameron I'd So the forward. do going is come into excited excited the to fruition to Ameron from the about and excited something for - forward. trying think like I about very moving biggest period how everybody I think to people market and the way acquisition I been looks it. is long this brought time. getting It's it's a about we we've too that And the the obviously it's company guess thing reiterate, of We're

So we next is and - this, go are - certainly, we call as our through

Robin Gantt

Early November, probably.

Scott Montross

we'll call. on that and November, to again you, Early continue have thank the for joining updates

So thank you.

Operator

you concludes joining. and that today's you all Thank for Thank conference.

may disconnect. You now

Diane Weidner	Assistant Vice President of Investors Relations
Scott Montross	President and Chief Executive Officer
Robin Gantt	Senior Vice President and Chief Financial Officer
Brent Thielman	D.A. Davidson & Co
Tom Spiro	Spiro Capital

Northwest Pipe (NWPX) 5 Aug 182018 Q2 Earnings call transcript