NWPX - Earnings call transcript Q4 2020

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Operator

Good morning and welcome to the Northwest Pipe Company, Fourth Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Scott Montross. ahead. go Please

Scott Montross

the it welcome to full and Eastern is Pipe fourth CEO Company's Montross, Aaron today being yesterday, Good By our Wilkins, XXXX XXXX March now, to earnings access and Chief of and President year I'm name I'm at you available Time. release, conference is press quarter joined and by morning is approximately the Northwest company. should call. Scott of Officer. earnings and which p.m. This replay. X, webcast call Financial have X:XX all our for was issued My

their of results results we made differ no from that pandemic went to that The for refer priority. most and for always lengths our as like and top factors on we've could As ensure for and to onset the would the their full the to the a filings of joining materially. to recent given our on to our our XXXX statements our even regarding our update Pipe year had for communities in further the financials year society greater actual other our impact Form with families, obligation expectations. discussion economy of and COVID-XX through you call our XXXX at that highly actual At our that Northwest XX, Thank our we any and detail. begin expectations the results. employees, the review forward-looking taken quarter would year-ended could I this in forward-looking challenging a significant of are and year call was safety all large. very safety health cause you December has the families fourth performance. SEC to Please remind Aaron our great like begin, I as walk future seriously. XX-K pandemic our will statements. of employees, everyone our materially and it today risk solidified the XXXX a and We then ongoing differ discuss Company to to undertake statements,

year, same efficient, continuing the to even to related more the experienced enable time disruptions Throughout be past period, States. many arrangements virus employees. plants the we've paid and in operational leave at remote while learned at our we've working this During of our to the trying for United additional

able these and to and to However, to infrastructure our time we've through products customers. on ship those issues products work continue been critical water produce

experienced Colorado, infrastructure As recall, mandated for you due also San to may we closure at Mexico a Luis in facility of the Rio second water quarter majority temporary the pandemic. the government manufacturing our

then return and exceed However, to we production operations were able June, resuming quickly to since pre-COVID levels. in

to our Now results. turning

$XXX XX December of including million, compared of at orders fourth approximately our million consecutive exceeding million quarter was is and As for historical third Northwest the we standards. with $XXX million fourth marks confirmed to which of quarter of the The the end of our backlog a tenth end by the at Business Pipe the $XXX XXXX, believe quarter strong quarter very backlog Legacy XXXX. $XXX

quarters between million has our XX $XXX and million. past the backlog Over fluctuated $XXX

XXXX will weather by by nationwide adverse compounded on impacted to related was backlog weeks. of pandemic. early that second the Our effect in we’ve and experienced XXXX have the half in been an have delays we delays experienced bidding recent the events These the

pipe to project simply reiterate are these as to look continues bidding current delays. the these I nature We not would strong. like cancellations, temporary as view pressure disruptions However, but in steel schedule

increased strong Despite both we elevated $XX.X revenue business Geneva. performance the concrete in million, a XXXX. of contribution net annual is which our which on seasonally environment, Geneva acquisition months, time precast for even book This of from $XXX.X order during generated year. the business, completed and continued the this slower winter helped our addition, XX, the profit included has the In remained Geneva We current months precast the million as of sales January dollars. represents gross revenue only XX complex

gross job a legacy further XX into of strategy, Solid from positive results XX.X% a to Geneva to help Revenue business related which key shifting pipe our contributions million diversification positive from and out margins the our element and steel up negatively production year-over-year dollars in XXXX. our $XX.X from These points gross basis I'll was drive impacted further increase on XXXX. in pressure X.X% volumes profit of legacy demonstrate momentarily. a growth timing decreased and elaborate by margin

jobs pipe bidding environment. due With the this and fluid pressure as has to longer been engineering highly permitting, macroeconomic complex for with projects momentum, have and background, inherent steel While quarter the to process the challenges first delivery we in expect of taking delays impact current market steel resulting in The effects as disruptions in extreme bidding conditions and delays. production be the weather parts various steel business. pressure of pipe as of challenging volatility specific period the due in country, to well a

is seeing XXXX However, seasonal and calendar of as strong time even the bidding currently a well for as the a precast order we business, concrete pipe book slow during strong steel are pressure year. that the

the we conditions result, move we to of as through part XXXX. market expect early As stabilize a

to a like I'd discussion turn of to our two-pronged growth Now strategy.

in focused which this ago the slower First, transactional the over in business legacy was strategy with precast pipe is entered of to market. on of steel Since then market nature exactly Geneva. business, growth a what helped the concrete intended We we are offset year do. just periods the our pressure acquisition precast the has concrete

million annually. we've billion and market to opportunities space, include fairly which are precast expansion to to specifically steel for in pipe the $XXX billion products $X addressable is an $X.X estimated $XXX U.S. margin market limited concrete Given the related in acquisition the in our higher our market, product water million opportunities pressure expanded precast

possess Our opportunities and good potential active ideal market efficiency margin characteristics, targets. acquisition precast growth strong potential, very asset multiple concrete We profile. flow strong solid with cash candidates organic in a in would the remain evaluating

on building we've prior been balance sheet. our year, the million was year the the Geneva $XX XX exceeding such just ended intently with As which our $XX.X million on last We balance of on in cash cash, to focused December acquisition.

As recall, $XX a acquisition with you may we our and $XX.X term cash-on-hand banking the of through a Geneva loan million financed of partners. combination million

management our essentially of to ability scratch our rebuild assets. Our current highlights strong from reserves cash

year. In trended over pleased addition, of how integration the we the has very course of with are past Geneva the

process significant organic RCP believe corrosive which have growth we innovative We applications, are commercializing and use in new potential. in of the currently manholes sewer for

our to of core which remains prong second maximize The business, water steel transmission strategy is our pressure pipe key.

Upper water pipeline order water water We in move manufacturing XXXX, early The and in new water pipeline XX,XXX to XXXX to or further pipe. North the is shareholder Worth Our Construction to XX,XXX years design one, a western new package goal to phase. the major year. multiple holding for facilities in in to value is we've this that and efficiencies, Prop In tons business out pump program optimize begin to is measures pipeline, market, treatment billion Texas been program. those last in to California over is tons The and Dallas XX% significant market to progress authorities is made drive expected the reduction funding maximize three has lean projects in and of surface Construction Trinity as much-needed According built Harris through a Lake the Regional dam expected new multi-year, forecasted another continue a of Fort outside current West Agency, Water next next the currently in are state. having Texas have into to be various anticipate be Water to ongoing resources another timeline. transmission projects Resources the year. tons of and of currently opportunities we multiagency segments for program within This the expected now late begin There additional $X.X beyond for Regional Authority reservoir creating pipe. Water for County in XXXX tons infrastructure to currently bid representing for California's This fiscal for the created the appears dam XXXX. appropriated is upcoming and and is includes XXXX/XXXX includes projects. reductions. drive program with the working will funds XX,XXX of Central to now and Authorities. for In large bond represents pipe Metroplex. engineering Alliance look program to explore is turn The projects construction station regional efficiencies additional Ralph the cost represents Natural representing Regional water the at to I further bid both Texas XX,XXX District. multi-agency Houston the Hall cost

for generated new requirements to projects see have these the next opportunities California which for the stretch over market, on the continue programs bidding in several next We to we Water expect activity year. out reuse expect years.

the MWD miles X,XXX program rehabilitation as We one LA tons operating have facilities Sanitation the The and pipe. regional demonstration reuse with early and program recycle conveyance reclamation been to full-scale diameter X,XXX Southern of heading current and sizable three months, The treatment tons. large annually bidding in of in is XXXX, over six result XXXX. in reuse begin project the representing from in three conjunction two construction largest years. could will XX-plus This has a identified and pilot of water PCCP about facility projects will for facility involves California next District. treat as

be to moving pipe, funding involve XXXX, recently approximately and earnest design so scheduled In miles North XXX-mile is later inch the The The for progress activity a in year two This funding. slowdown ton the Valley site's their slow received line. Pipe. The will will XX,XXX begin of forecasted to these commit system. it Nevada Northwest year. a of water storage southern of January miles from XXXX. and that bulk the has seen construction program, project water shifted Water full has Red on legislative started XXXX. have work upon We XXX tentatively was part related, The dependent session Water delivery is Supply of River bid awarded has this Authority which in XX reservoirs timing to Prop Project. preliminary demonstration one, COVID project Dakota, has has XX- to this year of the forward project this in include which The begun to expansion appears steel of this of with to project XX inch with over in this XXXX mile Southern projects pipe

Engineers of in approval of Decision Denver XX pipe do Integrated in of We discussion safely construction now is tracking bidding Colorado, as miles Army uncertainty. strategy we The In assembly. employees the challenging the of broader for Fort located healthy our as and north legislative economic an expected be favorable, pipeline a Project. to to by executing XXX despite start structure calendar Northern throughout highly In in Collins closely to so of strong. of state Record the outcome excellent are the year. up job possible delays of If continues the continued a further The U.S. The current the summary, area. tracking Corps pressure is project of doing our due are have remains XXXX business our budget at to miles to late XXXX. Supply steel

optimistic XXXX a we year. such, that are As will cautiously be solid

two-pronged positioned growth strong well position. to given to continue remain sheet our liquidity balance execute we strategy and Lastly, our

forward focused COVID-XX number and will three, margin all the who pandemic; number number identifying our precaution on on through we to to taking quarter will our and focus company for number the one two, our over strategic walk year over reductions the opportunities cost As to efficiencies company. now every in priority growth detail. the we a implement of fourth turn safe through greater four, of and levels employees full call volume; remain ongoing continuing I will at results move financial keep Aaron persistent

Aaron Wilkins

provided full I'll fourth healthy. good XXXX today diluted diluted compatibility quarter I million begin compares the $X.X Pipe associated Adjusted the to fourth in share per per excludes you, hope compared and release items of and and results. fourth fourth $X.XX of The you're fourth expense of and Geneva the is in of reconciliation adjusted fourth safe for assets adjustments. the taxes million Please net quarter Adjusted our quarter XXXX. for insurance XXXX. net of or income intangible share, Thank to XXXX with of income unique comprehensive the quarter net of fire, unusual quarter in Precast, Scott, with to staying million $X.X applicable Saginaw quarter of morning the $XX.X net all and with of non-GAAP taxes. refer amortization $X.X favorable $X.XX our was a of everyone. acquired year income in recoveries of This financial excludes net for purposes. million or earnings accounting measures

of XXXX. Gross in of X% changes Our quarter XX.X% decreased were timing. decreased by $XX.X product to quarter ton Legacy fourth due a quarter to sales to decrease offset in fourth of quarter to sales partially XX% million ago year XX.X% $XX.X fourth to sales XXXX. Geneva in project or fourth of decreased sales compared selling was in to million revenues million from the produced XXXX. price quarter million of $XX.X net XX% This in million the $XX.X due the the mix. compared due increase or per tones in million $XX.X $XX.X profit to

For was in purposes, quarter fourth of by in $X.X profit elevated insurance net comparison the recoveries. gross XXXX million

benefit, profit $X.X of costs our gross selectively are this the of fourth including business fourth to Excluding to the fourth Geneva, increase XXXX. compared we margin in to of develop administrative due precast million The million our XX.X%. the XXXX support further Selling, of other quarterly and $X.X have addition quarter general and was would were primarily in quarter expenses been future quarter amortization to growth. the XXXX costs for incurring from

per full diluted XXXX. XXXX in in per $XX.X or year to Now million compared share $XX.X share was or turning million $X.XX Adjusted our $X.XX income net to diluted results.

in associated million from XXXX net associated transaction adjustments in proceeds as in transaction Geneva well the $X.X $XX.X million business, related $XXX.X Saginaw adjusted items: $X.X million adjustments. in settlement Products X.X% related one-time adjusted following: aforementioned to the excludes compares other Net sales in in these accounting million $X.X to tax in our related XXXX facilities, XXXX. million X.X% was of due by contribution excluded net the partially This gross $X.X for XXXX. acquisition XXXX. For sales profit to to to to with SLRC in addition sales operations, TUBULAR was addition the of income per shutdown related due ton a price increase to in acquired The XX% mix project in in of primarily product price mandatory by net our decrease due is and primarily per net in in second quarter million in increase to produced, The a due tons The primarily or a to selling mix. the increased facility which were offset our XX.X% produced were XXXX. due a of decrease selling Geneva resulting fire, the and impact sales The to million associated contributed former legacy $XXX.X government with as of Gross decreased following amortization million pandemic XXXX offset our the insurance to XX% million ton. the compared of of XX.X% acquisition and the $X.X the million tons costs, timing changes net business. in recoveries in Geneva income increased which sales partially favorable in compared profit lower corresponding from which Net legal to items. $XX.X cost, legacy or XXXX of tax $XX.X in impact operations increase at acquisition

plan. production the reduced incurred insurance gross interruption XXXX of business was $X.X with Our of million profit by portion incremental our costs

of due in amortization of to profit million of million gross acquired Geneva, from in to have XXXX. this X.X% or increased administrative XX.X%. X% was net and would $XX expenses increase been including sales The the $XX.X higher related timing addition the expenses SG&A Excluding net and or in XXXX our sales related to costs, expense XX.X% in primarily margin acquisition tangible assets. and general compared XXXX transaction difference, Selling, from workforce expanded

we in addition, In XXXX. higher compensation incurred expenses incentive

year XX.X%. an had income For we tax the full rate XXXX of of

tax Our are valuation we XX.X% rate a of on and our was allowance. between XX% regulations, XXXX existing to expecting low due XXXX Based to rate XX%. unusually tax changes tax

our condition. to transitioning Now financial

the of was outstanding year. from remains very million for XX the debt and in $XX.X $XX.X million amortization available from consisting million in liquidity strong. balance in At million, in of to approximately line at had Our $XX December of end Depreciation $XX.X $XX.X total cash We equivalents cash and XXXX. sheet and $XX million flows generated of credit. cash exceeded expense our $XX.X million XXXX operations compared million XXXX. We

be $XX year are especially $XX circumstances capital entirely In expenditures totaled XXXX We consisting very to summary, in $XX of in full our currently XXXX expect the with of million to million. CapEx. financial were considering the Our they XXXX pleased expenditures capital achieved. which results, range maintenance million our we

we project XXXX's headwinds highlighted, are the employees we about like of anticipating in my company's Northwest many the contributions our first commitment quarter their delays. weather the for their I'd and prospects markets achievements, events, like Scott support in As I volatility steel recent more also all the the have extend of the ongoing their shareholders to session. XXXX Pipe. to for cautious begin our to over related optimism despite operator thanks will the to none important safety. to it to question-and-answer to turn to now than I'd of some continued thank

Operator

first Thielman is Davidson. Our Instructions] D.A. from Brent ahead. go [Operator from you. Thank question Please

Brent Thielman

Scott and Aaron. morning good Hey,

Scott Montross

Hey Brent.

Aaron Wilkins

Brent. Hey

Brent Thielman

guess first I Hey, question.

early prices your to that then protected selling the would of that expecting I way the part pretty your year? of and volume offset steel of can a in second moves are you assuming first guess part offset know up probably Scott just portion the feel that, margins declines be Some you are question prices well pretty the that you do lately. for extraordinary large are in the question, that, gone

Scott Montross

started year Well, with for quarter going fourth a started price the of situation when Actually what much the pricing different year. so you wasn't to coming fourth price affects you the steel up, selling second stay mainly when prices at the the the that into more what longer where in what’s quarter XXXX. of steel impact, of pushes XXXX really cost simply that just it get that, quarter XXXX, quarter steel likely averaged was know the that that on you the really is. are look or first of starts steel the is higher you versus revenues have it Brent, have fourth It you early in the after you the steel and the because buying the the late in. price, the piece Obviously quarter steel the

looking to the go So that at grow out Generally bid it, we’re side, when know a with good. when works pretty jobs, and our the – get we price on margin – and that we steel customer. you're use you to

to has lot here years, business same a really XXXX. in we volatility so seen it cases have steel we steel steel and order that and gone have back kind from impact. have we've used seeing for how available the little then with not we some We are and to thing of there books somebody a people be, been steel get several be in which the appear of that bit in may But an this. happened to The overloaded else, of have the

then it. we have we’ll seen high of up. part managing it's So another the least an – something steel just it haven't extended at But which question through was appears if of it's your the price prices certainly before, second that way what stays will, Brent? certainly months, that for period not really the selling it least at And that time, few pushes for the

Brent Thielman

pressure of that and enough yeah, context in the and portion you're – to to here, the would Scott big selling year offset about like prices going you you of that at think the that? I know I sounds volume least be to could move trying some Well, early assumed I part a was higher that in know that have it

Scott Montross

you our if of big only you – the excess a know that maybe into that Yeah, bit XXXX key. half amount really we're XXXX. multiple we of One, first so XXXX, out of slide the actually by piece okay, of work, of in that's quarter a think things. The year, little the what big, at look in the of really But I and is saw second seeing calculations into was it the worth well of it out $XXX was slid work. work million

pretty and of in that It's of of now the the right look the while. the I part week it we're bid calendar the the weeks, schedule several a year and part a of bid it our the out, But head we the and log what at would through of go ourselves as matter looks seen and getting some and I bidding bid say of in what I've is early especially really a and meeting bid with So just XXXX. heads disruptions in over saw every early – a that next seeing is our as weather and have calendar year. steel good as solid operations sales we

so some XXXX. we've cautious jobs the So in into got the we've bid optimism and bid other calendar, calendar actually up about why actually pulled some that's fact jobs inserted into seen

Brent Thielman

I weather you’d of slide in seen in the was mean terms being Scott the sounds of and it back Okay, the fact part of calendar. bid like to that some

Scott Montross

saw a do business kind to most with the have COVID so or a we remotely going, the and sliding trying you when got it time, early period where year in job may little a Yeah, that half you had little and that out a bit a you this the to with there’s virus quarter of sliding started impact of related. everything part When second been month COVID pushed kick that but the think the most in, of the at really on look so jobs the first stopped, of of around, bit, a Brent, going impact XXXX was of ‘XX I still really jobs into of but push actually once you out and year work had what had of you situation jobs, are is are of take to into second keep able the of out stuff much you working bidding where and have and into quarter slide the permitting, engineering work and had figure year. with longer to you're is remotely the to jobs. which second why part starting to do the started people longer, people see But XXXX. the the things how into you of they It as out because

could $XXX it high into be actually know ‘XX. early slid You as or as XXXX million out that

know steel So just when a to a you at the and you of have XXXX, the being and at out revenue pipe relatively XXXX, record some look ended think slid early would you transmission close stuff was additional XXXX about that in XXXX year, in looking – know obviously of the up XXXX then year. that, looking at taking that side revenue in which pressure like water that,

that makes for XXXX, ended sliding, just that looking much larger a certainly actually at you at steel little up when being. pressure look XXXX than it in bit business the So that work pipe

some you a significant could actually ‘well, potential actually XXXX.’ and there at put of more of there kind slid amount So look together out into was numbers say, and that’s that

Brent Thielman

calendar give the perspective, I us as are but… planned. it’s market if Scott the plays this up $X And always or little from able you case, the context much of either out tons year are not how to a could more a know a, be

Scott Montross

had that you Brent looking number we I we at is tell what know that we to have can you of have, about forecasted XXXX Well, XXX do, in that jobs the bid. jobs

year XXXX somewhere we Now year really pretty leaked the XXX In the at leaked and in during near about XXXX between we’re that down and little mount record right had a now time resulted know obviously are in actually the that bidding in because XXXX. was some the number that of bid big probably a – about you at XXXX XXXX, for job that’s more, of jobs which that in a XXX range. that We're actually the a bit end year. out jobs in were looking large

year strong we currently bid pretty are bidding and XXXX So the for solid seeing that this calendar.

Brent Thielman

that's helpful. Okay,

me bought comparison one on Any is entering you year. of last mean fair and context how Geneva. this know You we in just I know you it, know don't – last I book think there? the if higher pandemic that much that’s for is when were I order sort a at

the off Just think that… about grow to how can Cross Talk] trying much business [

Scott Montross

Yeah, if January prior owned were, for look the in was XXXX, Geneva $XX million. $XX.X that and area for you rated $X between had million Geneva at our what Well, results were – what of so about we million. our likely include $XX.X about in Geneva didn't about that million revenue we and to total somewhere between business

now that is have to grow. The order on know right we continue we on we're were You that that’s for Geneva similar Geneva. saw last transacting to expecting year based you know going book territory for in we what's in what the a business precast when to

know construction expected going and single the you the actually one housing that grew the on you at for XXXX XXXX, precast grow when we think you starts the in that was of to the growth starts, to thing are related construction that look drivers a in in market have family I XXXX. lot is in continue and areas it's to and of know population business

now there's seeing interest we're in of then the and Geneva migration the national that's right the Pacific for into is the a is I Northwest housing at because you low pretty in know forecast going specific least range Utah inventory really in Utah, forward. bit with on, little the higher, climb in you the going – seeing I seeing we're support market area if building think housing starts strong and net actually know not Utah robust there a in it that. know With rates the that how little we're

case.’ growth to when know for I to looking ‘Hey, It's are rate. Geneva what XXXX, of that about Geneva the probably saying, acquired a to a it and you probably somewhere look be sold makes So that the to be on think upward line we’re we could sense marketplace do think you're into back bit works this at at when between thinking X% potential that little we markets products talk that in commercialized may also. cause X% and starting and I the when

Brent Thielman

helpful. questions the guys. very for Okay, taking Thanks

Scott Montross

Absolutely.

Operator

is Richard The Gus Northland. from Please next from ahead. go question

Gus Richard

questions. taking Yes, for thanks the

and Just are in in there real terms of material, of the supply? get raw market any steel quick, terms ability to your the disruption then

Scott Montross

U.S. delivered few you can there's supply. got One, a last I year. business been things of a couple gone Gus substantially North right. that where that America steel XXXX one I know the all and believe a of Mittal steel, it's River It's would mergers Steel. acquires in in mining except at delivered, in the acquired when they because over you to of in that get on being Calvert, Cliffs, major the AK you acquired previous the say and have Alabama of assets Big or Steel Steel, the it's company end

tightened of situation, normal we the see in normally steel and then those mergers had down you times saw for It maintenance. to what on is XXXX, really what going we some a during time. you've scheduled that period got later So major supply started being

are times jump out tight. actually we know lead supply very As a you the and that cases place, with existing trade saw in result got

pricing, you tripled. prices you last it kind know actually almost getting July little or of a And since steel XXXX three been the probably four difficult of over you has months. So exactly bit at look it want when the when

FOB into steel. for it and a rolled You somewhere I ton $X,XXX think now mill right was band the hot last about know XXX area we're the for July bumping in a

buying got little panic. sporadic. bit So bit availability The going steel a it up started when of got at production a mills the and little that overloaded created schedules price

deliveries product it that So and led to for we what put not scheduled we if causes running were us to run. that you place late thought what production is, projects you changeovers run, to to in have schedule, so pull its may more and have planning you had going another

freight period higher higher high at starting to for bit time, prices; and get think stabilize to we the going we’re that fine while, But things have And higher that causes balance pricing mid but and ultimately steel’s profit what got Even bit little we mergers we as go imports attract that. same it and through have issues, this prices, more and steel you issue this to little where then have domestic of the is to continues to capacity sometime start gross prices. with in more a we're of gross disruptive additional the availability integration So out so an but you you when you a good with a the we that higher volatility know prices delivery fine and bunch a of margins, starts of the year. then up the steel late dollars, steel is, with know know steel off traction. the

we to So next going the things months, challenging. over been little think few and it's but probably are moderate a bit here, stabilize

Gus Richard

we're bad mean I and you going delays, of second and terms been impacting those very you quarter Got first then Are quarter, helpful. to you the still those expect it, do And an be are – quarter? them through weather impact pretty the through the parked weather. there's into obviously that's in

Scott Montross

was know weather levels our where were I weather affected. unless of through is have more they affected extreme Dallas normal mean down there the As power X.X the you there the near we far power one any the the water delays, insulation had three know pipe. there for no and on based Texas was weather we no as plants weather. the patterns delays of days you and most, Obviously

We snow – freezing problems plant which number West had a days. But here, the of it you plants day, a you icing will of of did running They Portland part up the we're had start down heavy to right were we a is of a actually for here. have the disrupt problems. not to pipe break fifth after up, event up couple you we power obviously In again some used you had XX it for after Virginia. back in snow pipe days. and the that and have inches Within heavy have know us but came

we in bit of buildings down to one Portland. roof with plants for so were which work, issues couple little at our of one of we of, taken of had getting we had damage care been So a a to our has days people

and road a to days, areas definitely the couple delivery materials up raw or to of the back schedule. for right it now and footing. disruptions. is right Gus delayed steel, it's disrupts of to more is some been But everything especially from, get And truck drivers into because a it's over moving bit normal rail just bit more, after depending little certain caused the and this bit on moving starting it also was coming but up little back Now for everything a thing a so storm, where disruption other back the does deliveries little really is

Gus Richard

you little Is Got clearly your for guys moving then the months and progress and been output more. has bidding you have you is in there And know use down more, position are so if the things – things been projects sort to coming a could as normal bit, could bit, it. know and they the are down demand produce you a projects increase quarters slowed but where there's slowed it a opportunity forward. towards process in these of an

Scott Montross

yes, up ramp we Yeah have to you projects. know, they the on take definitely – to ability

a bit can out. have bit log that we're seeing little always bid a in think of things because obviously right the I change projects now little we're moved move, up of seeing stacking can of things but what and

year, before are little You know with through some moving currently year and things things you this calendar we stuff the down last it’s pretty looked bit, still know as up and still stacking a and we the some moving kind positive line in but at way things have look around it of moving have out. least started

cautiously on this So year. pretty we are optimistic still

Gus Richard

will got rolling basically, up, be it. know you challenging. this And it, all very just QX Got

QX that and Is softness then about? QX. You'll and the big seasonal the thinking start are you ramp guys to in quarter be will recover QX. sort of trajectory the

Scott Montross

pressure know trajectory the You business. normal pipe precast – the the the of kind of business both and that’s steel

sits quarter what this the have right it with again of potential see continuing the now, the to change. have think potential, in things even could as and you is front at us. what year, of least you ramp I through through fourth But the we now

Gus Richard

for got the Okay, Thank it. clarity. you

Scott Montross

Absolutely.

Operator

[Operator ahead. The go next Instructions] Company. Walthausen Please question is from from Mike Morales &

Mike Morales

Hey, staying Aaron. good and you morning safe and well. Scott are Hope

Scott Montross

Hey Mike, how you? are

Mike Morales

you thanks. gave. well, Hey color that Doing appreciate the I folks, guys

growth area. thoughts and market forward your precast that the we are thinking with moving about on Just in as

acquisition you other you’d financial If What into like it, deeper characteristics kind in relative to was and it’s Geneva understand the help the you're back think on If the when announced there? pretty know Geneva’s acquisition, what are a we indulge brain dig out the and played I’d to seeing acquisition of little well to kind in you bit multiples? market the currently? Are that your me guess your are pick of out out of seeing. Just obviously expectations. what there I

Scott Montross

are been are are on. positive. that interested area that interested M&A companies the growth pretty in pre-cash People were our talking, we focused it's that’s markets Yeah, talking, that and in obviously

you everything bit some are business size, Geneva I and margin looked a out profile is quite one thing a margin with maybe we is what a see than the lot at. the of definitely XXXX’s. of lot availability the about really But product of The those Geneva are strong. Geneva. out bigger, frankly than It's we've we so be businesses that profile little there. is these the mix bigger and good at a know potentially that different Same are companies a could really there's with things talked think lot seeing there forecasting and had these of plus precast earlier that XXXX’s about good we maybe availability

know still very XXXX. Culvert now guys the what Geneva. similar strong I mean like and things Those which bit we different things look a margins big the multiples and are water and RCP that. XXXX like thing precast like of multiples little for strong maybe You upon have vaults also we're that. some piece with of have and manholes probably of what through on you looks right that that’s seeing the the and of see, saw But non-water, centers these to that, all we into going utilities

I impending X.X Forterra that three when off that Aaron? finished similar some precast is the The they of one If right thing interesting correctly, multiple we saw just that. of and the big market. you acquisition Geneva I are is of the about to that concrete if the times, think so the Quikrete Forterra remember in news announced on is is

Rinker. while three big other are The Oldcastle, the and owned already of Rinker two Quikrete

thing have things what Rinker. they fourth until will the much of to size significantly we've scheduled which that were now larger looking and close not at close. But interesting seen. is regulatory go have They the to They have than to they multiple So though that both the actually Forterra Forterra. at, It’s quarter. and was, some the looking

The thing Aaron I synergies company. really I’m they synergies realize to So what are as to I we're guys and are put looking big at man, be big really for a what synergies that they really sitting in, is is for that they when and the that's multiple. the are and don't going – – chair the a the far interesting the company, see as What at two look of going you together from could create. which

that, So may drive the multiples. higher it

little the depending range. seeing a or but from so looking to that or the XXx, it's it’s now. a range seeing size, stuff I over right say you're are that would with So more things seven Xx that about bit little we're at wise, on bit, ranging the up a in the is anywhere of multiple X.Xx companies we're

Mike Morales

especially That's helpful had the acquisitions discussion just the mentioned synergies that you coming from you know really about about. and the

guys, higher You you for know multiple kind of about of with I'm a the taking and and… hope that always acquisitions thinking

Scott Montross

go. you There

Mike Morales

– there how geographic, you to guys me you would be? can to from your capture be grow in expect business able outwards I in that knowing might synergies existing just do a of geographically Should to this be locked looking the order to market, be precast guys you footprint get looking let you a be an – guys you know little to Would optimist. acquisitions more in

Scott Montross

us, now. in those try that’s grow the always in from and geographic The geographically willing to case scenario. that in, right markets have is you are are are there best you [inaudible] is issue close that what already case out Best is that you which that scenario, for to are buyers locals not market

ultimately So stuff at you end and potentially up together trying you in of know it. how that and different areas figure out you the out pieced looking synergies to

where piece, you back synergy as like you out where an may would we as are, together, things sense. always it geographic available grow to we and these but eye office more in the you know side, be to it’s start synergies pieces smaller things it's But together. ERP make available, the may from geographically from significantly there able like the a piece, put bulls from even not a put drive in be be it's other love to overall locations stuff that's other think continue and that size to really might management it's stuff its you that I really systems,

Mike Morales

integration, are the Right, just synergies from the you maybe truly from know understood back guys strikes if acquisition me you and taken and do you just you that, consolidate functions, it? have that coming that learning the office know Geneva hearing the it

Aaron Wilkins

did I lose think – Did we Mike? you? lose we you

Mike Morales

Sorry about that. Can you hear me?

Scott Montross

Yeah.

Mike Morales

are thinking if office can make sounds as multiple can really it repeatable, that guys of you grow the business, have margin back a is it some like formula here, to improvements kind consolidate kind are of you almost it? look creates that integrate you know you synergies, that you like You expansion, of how the and very about guys know ERP, expansion,

Scott Montross

looking senior Those kind absolute of that very are the Absolutely! at. board-of-directors of both consistent the we're discussion at and right things a now. topic That's level the management

Mike Morales

to Exciting Folks it. stuff the come. up Keep work. the Got appreciate color. good I all

Scott Montross

good to to you. talk Mike, Thanks

Operator

to closing remarks. to This for concludes Montross our I question-and-answer back Scott over would any the session. like conference turn

Scott Montross

like we for again remain reiterating Thanks continues business, at to the joining of call today. that as you. conclude strong. Thank structure I'd our it look by to the

we've this near and worked see healthy. equity potential, out Despite delays the on, water infrastructure affordability that also period of are to they're add that and long, the programs of time. a the could as bolstering some working we had there remains think being business the into are I term that transparency, on bill long demand that that programs like XXXX, reliability for

out million our by still $XXX over still has the the million of moving been XXXX. which backlog, evidenced quarters last it's for XX was over, and even over work $XXX As all after

cash in the look remain remains we and in elevated, further the XXXX, out are to slower As we precast building even to book projected are order the our though solid, we time very year, of liquidity, the on future. strategy position very to a based support in generation, infrastructure water to good the the U.S. and our execute to continue continue continued our to on our well into needs

during thank May. call on difficult everybody first So with early in forward year, and look speaking you to their we of work quarter all again very to exceptional the again for this our employees

So much. very thank you

Operator

The conference Thank is today's presentation. concluded. for attending now you

You disconnect. now may

Northwest Pipe (NWPX) 4 Mar 212020 Q4 Earnings call transcript