NWPX - Earnings call transcript Q1 2019

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Scott Montross

Good morning, and welcome to Northwest Pipe's conference call. My name is Scott Montross, and I'm President and CEO of the Company. I'm joined by Robin Gantt, our Chief Financial Officer.

As we begin, I would like to remind everyone that statements we make in this call that are expectations for the future are forward-looking statements and actual results could differ materially. Please refer to our most recent SEC filings on Form 10-K for a discussion of risk factors that could cause actual results to differ materially from expectations. to will turn results. our now will Robin discuss who first-quarter I

Robin Gantt

you, Thank Scott.

$XX.X production $X.X XXXX first volume. of $X.X general increased Ameron sales. of incentive had of net million million in XXXX quarter expense first added of percent was in the in first was diluted percent million of a first Sales in increase income costs Our tax XXXX. to quarter of rate compensation of income the quarter The The $X.X quarter tax of Gross $X.XX a in first Selling, due in the improved diluted from to an in first as as in income acquisition quarter expense. XX.X% with XXXX. rate increases the million the of XXXX. quarter tons to adjusted the to in sales in compared first or $XX.X the share of about an or million and first administrative $XX.X the profit produced. to due net higher million an increase of XXXX. in of loss XXXX million $X.X XXXX. were per We share in the the was compared per benefit to profit sales of XX% X% first quarter $X.XX compared quarter Gross compared to of first quarter XX.X% a X.X% was This increase XXXX quarter sales

the XXXX, most provided in quarter amortization quarter quarter quarter operations. total valuation of Capital Saginaw. expenditures need the of we in were planned of cash from and and may We've not in equipment spending first amounts continuing allowance. XXXX. for for first of $X.X which maintenance the for under was million capital $X.X $XX.X about rate by in impacted maintenance the in XXXX $X were changes million falls and first the million million million were replacement Our XXXX, XXXX, capital in capital expenditures XXXX $X.X the the does of company any Depreciation first ongoing expenditures. include In which in estimated

have As all we release, gross fire, related the coatings in had accounting different recent gross profit at quarters. saw accidental points for until our the and The Texas April insurance claim that likely gain as reimbursement. will in reimbursement ultimately unpredictability reversed accounting on our our you in be reimbursement of press XX. Therefore, closed. profit completely additional insurance may timing cause rules some later have the will an anticipated Saginaw, will facility in cost insurance on is recognizing appear that operation The with recovery fire

shareholders these understand help practicable detail will and impact. as impacts We the

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

Scott Montross

Work progress. significant the has platform acquisition on impact our on major ongoing of the integrating Ameron and added This company. expected strength assets have is continues potential the to earnings to to

the in backlog, XXXX, compared XXXX. million in first of As $XX the including of quarter $XXX confirmed was to quarter fourth XX, million our orders, $XXX and March million

current that for through first on we we As continue as due elevated in the stay quarter years, The revenues have and seen competitive backlog move improve landscape levels, to of and to and relatively and we should the earnings expect reversing call, to to first projected slow margin in a led backlog quarters recently backlog of strong the stable the lead in progress few last we've trend XXXX. strong stronger stable projects quarter. fell demand bidding to the the first through majority than the levels slightly last XXXX. Based relatively we quarter as bidding late schedule, current

could have fire the ability and quarters of Saginaw temporarily coat timing has coverage of The to the the interrupted the anomalies couple coatings insurance fire pipe. plant. However, expenses related at our from to next

However, has been normally. the very since coating operating facility plant the rest Saginaw occupies the small a area, of

represent about Water portion has d'Arc Bois reuse Reservoir bidder XXXX various Municipal Western tons to We on for to Houston bid projects appropriated $X.X and additional pipe. XX% created XX,XXX projects bond project and the opportunities two XX,XXX handle funding about the that to Houston years. flood to the In successful the funded competing the XX,XXX as on $X are bid the facility the the following Pipe approximately on as which years. pipe ship line raw Bois the tons tons. Natural well program, projects with the the Valley the XX,XXX the water from out of Houston over segments tons throughout and multiple by in water the program California expected have of tons of segments diversion continue fourth expect and state. quarter water enough several pipe. water infrastructure The finished been the of pre-stressed of Red for transmission has the to segments, activity Project, of in market, River surface market, will XXXX of d'Arc and pre-manufacturing Water Northwest projects. Supply coating fund programs within construction According the and more Reservoir XXXX project transmission produced of facilities coating XX,XXX a an for pipe. over repaired. Texas project a of projects X,XXX over Production programs approximately concrete are Reservoir operating annually the like that pipe. X's North SWIFT over project, pipe. an Northwest has look over represents X the will XX,XXX than North is X continue that to which year, additional next the progress is these of next Project of of The we have bidder in is urgent priority. Houston represents funding XXXX. on Water new while segments this of the is was XXXX be Resources California we billion There In billion stages into for water bidding to tons years. future. and expect Saginaw three slowed projects for with multiyear, we next is The representing much-needed last representing forecast series that Pipe in in upcoming it a year scheduled The for to tons to market XXXX. Proposition California taking rehabilitation has major in in line segments capacity various at representing half complete. begun successful see Texas XXXX, individual of requirements SWIFT funds the appears current for multiagency XXX-mile, water is generated stretch second represent to tons The to The Bois have those be were has for result awarded pipe Agency, been project a Dakota, requirements In fiscal the XX,XXX d'Arc District XX,XXX-ton a

Transmission In bidding environment for bidding a a trend and strong into stable that And project because hopeful translate a strength closing, and a projected throughout strong positive substantial business business. with margin this XXXX, positive portion in should year bidding sometime next expect XXXX. acquisition further will are we Group multi-year We position beyond of bidding solid a to year. on continue backlog, the our programs, revenues start XXXX. backlog, on of The in we which Ameron within see the strengthens Water work expect the to the conditions

repair improving forward, Saginaw focused the this of questions cost the at integration of At will margin business focusing facility; three, on and any four, answer and two, Ameron be efficiencies happy cost all progress reductions on efficient the company. on: we'd fast move Water we and volume; time, Transmission performance we remain levels restart over driving of our As your continuing of the and to of coating the by Group; one, the safe

Operator

[Operator Zane Instructions] question first Karimi. And from speakers, comes our

is Your line open.

Zane Karimi

lot the a work new backlog. And a when any burning the work to workbook into through through of you quarter. with there way that So talk this wondering burned the transaction? Is first that still a of reflects about can combination with through much the bit And how if all that? are off, I Ameron? expect you quantify was you And you you'll of inherited little do

Scott Montross

- still from the Ameron there's that amount We still considerable Yes. of we're work transaction. through working a

took over. third going was that when the of I quarter. through a define we're bit we it's going to, through bit still hard So a that at little we'll but of when be would mean guess, and backlog through we a least it, probably likely I there exactly burn through all through And little

kind over So bidding said going had I as where the the a things time into thought in quarter slow to a has late little hit. we've the first earnings years bit the first relatively which trend got Zane, and seen February, that quarter, been was as frame far talked of we which the a quarter March last And of get backlog. about dip what in really, and the and in the think you kind we we that to January last first in start of few we call we saw, see we're

the what us So I resulting stable lot an is, we view quarter late bidding drop. - continue we of elevated the - backlog started hitting this of based view relatively the on bit year throughout which with But a schedule, current we and of and of of based in have is the us. just in think to front backlog bidding expect on the what current the a see work front certainly, see in be little in first showing

Zane Karimi

this into a there any there. ramp like XXXX, have quarter But and do you that? do Sounds about better a how should of you last? then, think little visibility And be from stable

Scott Montross

Yes.

a what's now of are right, that Houston, bidding multi-year on the thing surface the on the see I the programs, we of going Houston like water program multi-year. think these that program with part continue that's step in is right for in is, lot

a talked I being Bois program. d'Arc think multi-year about we've

in bidding The by that stretch another being that half years. of the programs obligation things bonds California the X proposition big through are and stretch supported those the really the over XXXX. funding support this out in several have second next year general patch We from really of

XXXX. Pretty So that for year. all well solid bodes bidding

right it seeing what what what as it's - think those XXXX XXX,XXX say As year. at in stable, looks little as the look XXXX. year than backlogs a project stronger a backlogs saw like strong system, industry. at the certainly it least the it's at and we now XXXX XXXX in a I buoyed was we I not we're that would is tracking are seeing around our right I that. in because think it now It more really did really tons, do that landscape large But made stronger competitive we it

XXXX. strength into So XXXX we we're through definitely continued as seeing go

Zane Karimi

the any of a Just And maybe year. so Saginaw the quarter on how impacting? it quick there rest you better idea as the Can is I just follow-up commentary on looking provide to much of fire. quantify a have

Scott Montross

Robin I Well, insurance I'm going let pretty - this. stuff thing deep talk been into because the she's and about think the is to

of about the part thing our quite is, at very facility, it plant. one is is very, a fire note which occurred to Saginaw think frankly, coating small our I Saginaw

you coating small percentage when total really space the very, the space look manufacturing very a I at the total think facility. it's of the at in facility, Saginaw manufacturing

handle that. the one the that of normal. operating rest day way the occurred, was than as had six facilities really, and fire transmission as Zane, more like It's coating capacity plant and the to enough I after relatively said, we just running facility. water up And So anything

an But going which it's taken we other things it's an smoothly this mentioned. of, we near but - with, inconvenience can is kind to of moving focused term certainly current but down term as it's very which our around deal around of inconvenience. certainly, some bunch really work, care stuff into orders the broke It had So to plants where creates a getting of work with going we I that. on

I expert going Now on then And of that. that's financial to have you I'm coverage. about, performance really about the couple insurance and talked - over is the have the you as the next going let where expenses quarters to impact talk

So...

Robin Gantt

more I know recent aspects don't rules. Certainly, the expert. the accounting the about coverage coverage expert. looking But the rules, and have at different of different

lot that things, wait also pretty the claims be with much you hand. of for quickly. basically, what's first. deal pretty have of The a business have care So those you longer-term types the on that insurance actually That property interruption, taken is that damage until you - tends reimbursement to of to

more we'll where, that's think, I So see volatility. a lot

We can will definitely equipment. everything we're complete, start because to definitely already jobs on the in doing get impacts what working quarter have second the replacing get done, we

we are an our Scott to jobs was So sure course, of commitments that well are issue. other as the made make to facility the that going have as, without mentioning to moving

we So point so have them them. those see are. will but what be, we costs what know that can don't know they We will folks they out we to will

Zane Karimi

all you're Well, appreciation like for well. sounds there. managing it It the clarity

morning. So quarter, time congrats for the on the and this thanks

Operator

waiting, no show speakers. we And speakers, you. queue. you questions show in queue. further Instructions] [Operator in for further no We questions Thank Thank

Scott Montross

everybody thank for your attendance. I Okay.

are We again... talking

Robin Gantt

In early August.

Scott Montross

forward and you early we look speaking then. In with to August,

So much. thank very you

Northwest Pipe (NWPX) 11 May 192019 Q1 Earnings call transcript