NWPX - Earnings call transcript Q4 2018

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Operator

Welcome and thank you all for standing by. At this time, all participants are in a listen-only mode until the Q&A session of this conference. [Operator Instructions] This call is being recorded.

If you have any objections, you may disconnect at this point.

Now, I will turn the meeting over Scott Montross, you may begin.

Scott Montross

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

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

Robin Gantt

Thank you, Scott.

we was offset due operations the costs, $X.X compared Ameron per as Our acquisition quarter partially added $X.X Sales fourth profit increased the with prices decrease produced. of XX% in in XX% $XXX,XXX. to of $XXX,XXX proceeds from the diluted gains ton. to Monterrey We operations moderate administrative increases in or was $X.XX $X.X of $X.XX XXXX. of $XXX,XXX of in an Gross This in million gain in percent quarter quarter fourth the was million The diluted and had sale the million or acquisition facility or quarter fourth in of increase price of purchase a the of recorded quarter Ameron in recorded quarter fourth million increase general share. gain million did about in assessments. Gross costs million. ton, $X.X second of improved of million related an as Group, XXXX. we fourth the by $X.X was The the of and share and our primarily increase some the fourth sold continuing of $XX.X net in remaining in restructuring fourth about for XX.X% continuing XXXX, of selling Transmission per Water sales. operations profit sales bargain million the our per net the as We a from costs. fourth and to the from of a with a fourth of acquisition $XX.X the XXXX. first the the fourth have per XXXX, acquisition in due to adjusted compared percent X.X% adjustment quarter in future was in continued value and the $XX.X a fair from on adjusted XXXX, of compared purchase, to recorded quarter and XXXX. tons $XX.X sales and million continuing income in Selling, related recorded bargain quarter was Adjusted quarter assets per fair to income may diluted for gain loss adjustments liabilities, quarter $X.XX initial to share selling and have were additional through We value the adjustments preliminary XXXX. based

results. third the the last been and has excluding costs, Pipe's we Pipe's to acquisition noted As into income fourth quarter, been Northwest has Ameron quarters. consolidated in Ameron related Northwest accretive And

the XXXX, XXXX million with tons from $XXX.X income in profit in This X% Moving bargain as We as $XX.X Monterrey, in to to XXXX. compared prices price from or net due these in percent The operations from or $X.XX gain, per was $XX.X from share ton. loss increased we to profit diluted a XXXX. an results, selling adjust a share, added compared in $X.XX including of on full increase net $X.X was the several Gross in a workers of was X% tax, benefit improved on was results, increase million related income a and XXXX. have sales benefit million with XXXX, in in in adjusted adjustments million tax and costs one-time administrative X.X% to share an XXXX in in year the $XXX.X our increases or loss million rate $X.XX that $X.XX million diluted compared or diluted Houston million ton, rate to in of selling the in results sales. the expenses purchase gains XX.X% an did due compared costs. continuing XX.X% in acquisition increase to sales percent $X.X produced. Sales tax acquisition in XXXX. one-time remaining in per per Gross items restructuring sale XXXX. related continuing share adjusted compensation Ameron $X.X X% net acquisition costs, of The to and of in $XX.X impacted XXXX, of income million When for increase million change per was and our per XXXX, and XXXX operations We increased of a million $XX.X of loss diluted in per to Selling, about $X.X general XXXX. had reserves.

well were XXXX, by compensation. the company impacted windfall tax In bargain in non-taxable allowance Our operations. the $X.X expenditures. and capital in from for XXXX purchase XXXX, the and $XX.X amortization were changes maintenance in expenditures used cash Capital valuation which as million in were rate as $X.X was and million ongoing share-based million from the $X.X XXXX gain, XXXX. million Depreciation in

do of have spending. expenditures the had borrowed capital XXXX, of line have needs. for in maintenance we end million At and the $XX.X planned $XX for million under of not working credit. which Today, have availability We XX XXXX, most million capital any borrowings in capital about under falls have total about

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

Scott Montross

strong ongoing potential created that's the to make Ameron company. impact the has Transmission We Water have to integrating expected This a continue platform on Pipe. of Northwest earning major into acquisition progress the Group on

strong December third million $XX orders, As significant including at demand fourth a quarter a backlog, last seen confirmed we've that bucking in the trend levels, we've along compared calls. quarter in in million an result opportunities the million, slow the should years. was our relatively fourth The than all and The first quarters discussed XXst, bidding record competitive our of time of first to with quarter, previous stronger increase was $XXX current of landscape in stable three quarter year-end backlog XXXX. to $XXX XXXX, for a lead a recently the for

in Texas continue Furthermore, and at in to The are of over XXXX. Houston segments multiple the The tons begun to of over successful a is expected as fund to the that XX,XXX market, the an In District Water major will has quarter XXX,XX XXXX revenues segments segments various water the segments following $X.X pipe. represents multi-year, about bidder and of has transmission XXXX Reservoir The additional quarter in pre-manufacturing a Surface In look the the represent over Northwest Project we There pipe expect water The projects Bois projects finished d'Arc first North are the to be of of XX,XXX representing is the is d'Arc and XX,XXX Western forecast that SWIFT funded into XXXX, stages like a California major future. similar fourth XXXX of the Project additional tons the with and tons billion The XXXX. gross of in reliner complete. successful scheduled Houston the Bois of projects. in The and and quarter first Water improvement Pipe in XX,XXX representing multi-agency by margins construction we years. has produced program successful pipe. progressed XXXX segments, on over that continuing the through to ship production Pipe profit. XX approximately years. in XXXX will from of is In to this were Northwest pipe. portion been in the well project next on tons the line XX,XXX began the upcoming expect be represent a market, Texas individual awarded we the project fourth and Northwest represent We Houston of tons to program raw $X Bois segments. was water to to pipe. bidder last on of respect revenue be for for of bid SWIFT half Pipe the current bid Reservoir pipe. project d'Arc line throughout of six rest approximately Municipal series tons XXXX. with was reline Houston bidder of active program billion

first ton fourth that the quarter Two ton water quarter, through Diego's an XXXX. the first water will MWD program XX,XXX ton ton to of San bid the program as will quarter Authority Water of of has XXXX. competing will project billion Clara of it to reline billion XXX Valley early bidding additional Dakota, reline the project XXXX. funding the mile, with project, that And bidding priority. District's reline production North The San each X,XXX pure projected XXXX representing is Project, to which Diego is $X.X pipe appears start urgent tons flood run production pure in on with to Santa in of the The began which X,XXX diversion County through be first XXXX. represents and in progress XXXX tons for project Valley run annually. XX,XXX year, In segments begin to half slowed on is of Red city three Supply River Water a taking scheduled $X pipe XXXX First,

driving we of on, The With Ameron Transmission margins in of Water business. beyond of are levels And by and cost the because two, at on in a and project trend bidding substantial further programs, expect the environment, your remain this beginning answer Ameron the bidding integration in with the start improving volume, for solid of three, reductions of the the efficiencies XXXX hopeful bidding position successful is positive as and Water focused over which business all a translate a XXXX. closing, on any be sometime Transmission the of year within company. strengthens a project strength expect currently this happy backlog stable will of would In the we the a one, see Group time, move into conditions business we we multi-year the questions. acquisition Group, strong At to we revenue backlog, will that performance forward, positive portion projected our margin focusing throughout continued and should next on to We very XXXX, XXXX. coming out along year.

Operator

you. Thank

line the of We will Thielman. now Instructions] [Operator the begin the question-and-answer our Brent over from phone. question session first And comes

may question. You ask your

Brent Thielman

on Congrats thanks. the finish Hey, of year. a strong

Scott Montross

Hey, Thank you. Brent.

Brent Thielman

fourth or guess impact to Good morning. then and questions. seen big And and not gross still something Robin, you exactly of markedly know be. have sort price move negative back it's In seen of percentage and subsided. lot two you've seeing of presume Did in about that are I month-over-month? also, the Scott words, quarter I improvement cost it profitability steel last wanted XX% have this but any sort improve you level? of because quarter you I of year now sort your other profit the where

Scott Montross

think you piece, Brent. know, about when the You steel

the is than -- through the marketplace. we've the pricing increased I pretty we've think up pipe more in I price seen. pipe on on fact, as steel the piece on with is steel And that increasing even has kept gone much think the in

quarter, toward is to expect time what this the as we of backlog margins quarter through to go frankly, to know, you as an quite you level as say company. moving is, we've were chronologically, from margin back for a over you see that, I work quarter at your second we to the backlog this so what period the first continue the time, which you it would way As move year. third $XXX period Really million, of a through of has what improving a to look the historical grown

in that point. track I we're kind think at So, of this

Brent Thielman

sound a recall, last able you to through maybe relative I your think Okay, that changed bidding that was backlog Scott, all? to you we perspective was at move process year. seem Is maybe XXXX okay. might from mean, view still thought quite XXXX? grow I -- not be to be the should as strong I And like quarter, as

Scott Montross

thing and interesting start expect straight. the Brent, it way to Yeah, little bit year of we is, one kind around changes and every a out more

When work about probably probably the So, some when that's looks XXXX really of year area year. was you together. market and all a in you wise, so in put it with like solid relatively of bidding. the you tons that's bidding plant that's There the now look a at hydro around tons a year there, XXX,XXX bidding and big were or somewhere that XXX,XXX work Municipal of XXXX

not very a off to So from strong a significant what it's be drop would consider we market.

So we first as for not progress know, as starts as slow look we bidding we quarter standpoint, the -- a result generally heard XXXX, through you really and relatively years, off slow few you've last at at look from bidding as only from standpoint. but relatively the

or the sometime January, March time up bit second for in year, little this frame level things slow and get February the really and So quarter. a then in highest pick you see, second third are start between probably the probably quarter and to the third to

with forecasting this takes shaping But to we're the be settle level range of range-bound stay up, the is out a dip we first it higher point bidding at than it, bit expect we way backlog we've what within the little recently. and a at our seen to relatively at know and look we a expect a you when least at quarter. probably be, in So,

Brent Thielman

curiosity, Got seems for mean lot sound It been of areas it, the Out I it in-terms volumes. been across up hang a other construction? of that's have about chatted weather like of okay. and industry like a you

Scott Montross

situations. as has have seen shipments probably places. contractors. weather anything field we've But in Obviously, related in weather impact that East weather. in with further I Yeah, the the much yeah, and has to in seen at earnings in too. We've looking the the I both transcripts winter been issues getting of some things we've on calls other weather have think issue lay the that And guess had businesses. an agree and certain weather California, we of as -- locations some definitely Texas that to created from people some issues I seen similar impacted the the some from Midwest would

say the on I So the impact -- reasonable a had it’s its been. what would -- revenues

Brent Thielman

Yeah.

it Okay, Thank you. that's I think me. from

Operator

Thank you.

line Our David next the question [ph]. from Wright of comes

You may question. your ask

Conference Call Participants

morning. Robin and Scott, good

Scott Montross

Hi, David.

Conference Call Participants

Brent questions, on so let further. to him little me down drill try my just a asked bit

was what year. I'm -- was ask bidding about maybe gave. backlog saw this XX% on opportunity. it to on was So sorry, The you the I of and answers going total you opportunity last year

Scott Montross

the look characterize would pretty and a of at I when know, Other you tons Yeah, any bidding. in solid year that has time. year But year bidding range. a in say this you would we you has general, that's XXX,XXX of David, when a probably year being right kind than volume in a project a this that follow that normal is

--- So

Conference Call Participants

were have sense successful year's percentage you Do of Right. last on? what opportunities you of

Scott Montross

the months the we've year. market or percentages say last fold within the would When year, because only -- at of look of four company Ameron five assets the for you last I remember that the had

say XX% market the would share. we I So of were in probably

and between in probably probably this us. that look market we we somewhere it's As for XX% a as XX% settles think market out share forward,

Conference Call Participants

that's little market so if lower Okay, push a up to with you even a going opportunity, a more get bit? you share,

Scott Montross

we see and were I at the Yeah, for When which been strength some market, Texas we see in are market, and on West. to different not in -- is years. the David California, of add the to just Western you it's still just in But parts we think, where opportunities the look the this. that's market, strong also where strength

going we are that spots advantage the be think of are to in bid. pretty be to take good tons So, located to I able

Conference Call Participants

not What I towards historical hope chronologically margin? it's margins margins. Okay, the and the call condition the I going an gross you official improving norms. like would your then, deemed phrase, over historical profit

Scott Montross

had profit say profit when XX% that percentages look good we've what probably would gross they about you in you are margins XX% seen when when to gross markets. bound I at by historically, we've is the historically

longer as think to competitive remains the I stable, landscape think the continue stable stay the and I those market improve.

XXXX to over look year XXXX, the in for margin where percentages we we you had gross in that If back XX%. averaged were

I think the Robin somewhere, it XX%. area of was in

So the at I out question all. that's of don't think

up the levels. as there's stays the kind I to think setting no bidding right we way back reason things quite why now, of are it get can't as David, long those looks nicely

Conference Call Participants

Ameron their make And does does with product gross get slightly Ameron to easier different to or mix, that it level? harder profit

Scott Montross

the that, on So, think that room for see with the the when efficiencies concrete the concrete facility, Pipe, and don't out of okay? I No, you efficiencies product margin corrosive that, I compared look reinforced we administrative which large think when based product a more harder. that we reinforced diameter, is soil, makes have, specialty that being that the have at is at stuff it they what heavy the -- Certainly able I heavy different one, you deep-burry look you more make business of products combining of with the think improvement we pipe, see Tracy just Tracy in pipe it concrete handle in Ameron -- Northwest think of operational a to they to normally loads.

that product of the product. more of bidding that a less in a of niche generally environment. carries higher it's niche margin. And product So there's But niche a kind

that helps the the -- all company Ameron gross So we the but in part profile. assets margin of all, think as definitely

Conference Call Participants

Last call I'm great. personal. it to that's going Okay, question,

to directionally? Pipe, new of what's facilities, Northwest just integrating headcount you're in your kind So relative was where you've an acquisition, legacy got it

Scott Montross

is, companies the we originally I over in the legacy Northwest Group. area that of probably for the little XXX the about in a XXX. from Ameron XXX below Pipe got for I think, In legacy of area. headcount company both the just And would is headcount say total, somewhere

Conference Call Participants

doing just I you're them, people five getting tons, where to going on less years but was tons guess was mean less does less ago? more for compared I

Scott Montross

Well mixed you're the on doing It's smaller product with making. feet. that not it necessarily. of One, profile more lineal depends diameter, I all mean, could less lighter wall be tons the we product.

the a you kind But If with when we actually the legacy legacy of through what is little year-over-year fits to difficult at one, a ahead at we've those it time bidding our since starts So when to the Ameron you company get entity were bit probably look combined we're for And assets, comparing frame, orders best tons chosen that because it's at got kind legacy where look been day less July company and think and when were look that we've are script. combination. the of company put the figure and all tons. we goals. the a where to the to trying strategic things we I tons as on the --

So difficult the at just the to tons it's are. tell plants by legacy where looking

were we If at 'XX But -- look in the XX% year-over-year, legacy we're year look where just because higher in put higher were, to the you difficult versus tons more facilities. it's than production where plants in for having now. and and are at tons. to 'XX. We we deciding probably where obviously, it's things we're

Conference Call Participants

And the the on work Well, see the to good way actually the chronological revenue line. make luck projects their good working great improvements. with keep and Okay. into it's been up you've

Scott Montross

David. Thanks,

Conference Call Participants

Okay.

Operator

queue. Speakers, are no right speakers, Instructions] on there on are now me no now queue. there Excuse questions right questions [Operator

You may proceed.

Scott Montross

we the in for improvement seeing attending and Obviously, everyone of and into go you about look thank business that the call. seeing company, excited we forward the forward that Well, to we're the are more future. as Okay. the

call, you which on So is we'll next the in see --

Robin Gantt

May. early The

Scott Montross

Early May.

very thank much. So you

Robin Gantt

you. Thank

Operator

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

disconnect now. may You

Northwest Pipe (NWPX) 14 Mar 192018 Q4 Earnings call transcript