NWPX - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Northwest Pipe Company's First Quarter 2021 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. Please go ahead.

Scott Montross

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

for statements, could expectations As filings on for this results. made I'll materially. to we the first for future update today to obligation a recent cause that to the statements quarter our begin, results our risk other XX, from I'd joining the Form could everyone to forward-looking like performance. discuss and undertake and that actual are differ Thank statements. refer of Please XX-K SEC our no discussion any results forward-looking review our regarding in our differ XXXX call year-ended to you of our actual XXXX, remind most our such begin call factors materially expectations. a with We December for

over standards. COVID backlog we've strong by able pipe to remains been including XXXX, March the delays maintain at quarter, million end in related to orders the Despite XXXX. of steel of which bidding that of XXth we've consecutive at pressure seen first pandemic, $XXX backlog quarter million, Legacy confirmed approximately believe months million our XX, Pipe to million for continue over the for the compared fourth the quarter of end and business historical last was $XXX As the of we several a the Northwest $XXX the to the $XXX

To and our bidding XXXX delays XX fluctuated the backlog has related of elaborate backlog to pressure to that be between past pipe by $XXX $XXX million the in began second-half impacted continued has our the pandemic. further, adversely quarters, steel Over million.

nature. that I'd temporary we not like delays simply cancellations, project in believe are However, these are but to reiterate,

Aside to requirements these well bidding it demand. very delays, schedule continues up, that from pressure beginning extended in result project which of very steel period are build And pipe strong. appears look upcoming strong to the an current currently could

steel elevated In our quarter, precast increase periods the $XX.X as to to time of is in addition, choppiness revenue the strong of we're first since business, our quarter first a especially seeing gain the first business from as continued being despite of during precast challenging the of remained Geneva. quarter our to business contribution this pressure beginning book the slower the the first to seasonally Ongoing year. precast has stabilizer included throughout contributed concrete concrete a order sales serve for And order $XX.X We strength. million our performance net in end pipe book offset during a in quarter, which generated today. million, markets

days. down events in plants product Saginaw, Our XX% we postponed were steel pressure first of first and production production days, were in West portions nationwide due and plant quarter saw which delays to delays, gross revenue from steel has being and for our and is similar to for both Virginia, what Portland, negatively and of timing. XXXX delays adverse were pipe and disruptions in five supply in and of resulted orders, gross in the by production our mix multiple almost margin which on and Oregon Both of the market already delivery legacy being impacted orders business February weather closed margin Texas, backlog, affected XXXX. that our quarter customer-driven shut Parkersburg, in The January

for most additional challenging, second move of and steel supply of bidding potentially constraints issues attributed in resulting business the pipe which the quarter second expect an the bidding to which in delays, are are time, We causing COVID we up, will quarter. said, period market, recent as disruptions, to ongoing that present upcoming extended calendar appears but continues diminishing bidding the steel project are very And to delays, All delays capacity the it requirements that pressure strong due through remain XXXX demand. at could pile look ongoing the indicate to and of production strong.

remain book In is the near-term. very addition, strength, and indication precast a to business our elevated is precast which gain remains will currently continuing strong the order good for

we be result, cautiously begin optimistic a to of market continue stabilize will to conditions second-half that XXXX. As the in

two-pronged strategy. to a on turn discussion growth to like I'd our Next,

our Our reached driving of pleased our Pipe market. the precast the higher benefited very slower the business, of past February, and are Since with then, and margin and in has the how acquisition the concrete course Geneva from legacy of pipe anniversary has pressure nature integration steel growth the primary in in opportunities year. we've in remains product precast business. helped offset current We concrete transactional process periods these well over focus gone on which the first Precast

via in across through strategy country. to existing this is the continue to organic acquisitions of growth facilities potentially Our our opportunities and market grow at some

margin pipeline solid actively cash Building strategy. cash balance some ample focus to ensure characteristics our sheet We and as key focus a growth on remains with that potential some a of organic as inventory, acquisition with potential, order with Our we're our multiple the balance on cash in evaluating debt. quarter ended despite during the cash targets a remains strong to strong to down pay first well million, quarter $XX.X first execute flow. using properly

maximize our transmission value. of maximize to shareholder to in water order pressure prong steel is second business The our pipe strategy core

cost last engineering drive in for further resources we've progress explore last three additional to manufacturing the drive efficiencies reduction with working we're efficiencies made lean opportunities further years, our measures cost creating outside Over through as on and to mentioned to currently significant reductions. call,

manhole The believe have product recent precast and systems, review space. our launch current I'd growth like potential. the line I we new organic in Before highlight concrete transmission projects, which in significant pipe upcoming water to perfect

expected system Water X is tons Trinity DFW to a April. program has As to distributing recently longevity multi-agency the management options with that providing reinforced manufacturing to Hall We XXXX maintenance, large believe sanitary pipeline, appears a begin Alliance Upper municipal includes be We for billion been $X.X design projects Metroplex. holding move pipe currently Regional represents XX,XXX Geneva is on announced, and look There sewer This look in Construction of multiple representing effective engineers timeline. weak Western water to is segments into bid Authority surface the the manhole forward bid current in in is cost for turn and fiscal ongoing low The to of municipalities and dam Water late new program. Natural multiyear concrete represents XXXX, now in North The pipe and in management manhole barrier North Prop began XXXX authorities. regional County appropriated the line the system infrastructure forecasted perfect The for to provides transmission Texas over those reservoir additional working major for applications. various includes program the systems and projects facilities be use and phase. precast superior XX,XXX to pump expected sewer projects West is corrosion currently much XX,XXX and as created and built demonstrate construction another the in the perfect various tons for upcoming new market, According In the pipeline Houston another proof Resources stations water construction treatment state. and begin and XXXX-XX is performance have Lake water next water Texas pipeline Regional I'll pipe. next for tons having package at long-term California XX% is the program those dam America the Agency, pipe, line California's and Regional of Texas as is Water needed and tons authorities focused projects. a funds for with in bond a multi-agency of beyond XX,XXX wastewater Water within Harris system XXXX. early expected to In Regional a of solution. to program market, Central We the now the year. the year. in to Ralph The funding anticipate representing within District. to

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

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

upon Red an earnest North has will XXX of construction Water is to timing inch XXXX. of project. seen This pipe does In XX XX,XXX to related, their reservoir The funding further for remains awarded work north approval outcome demonstration January for State ton so XXX of we're of project moving progress If some XX the XXXX. near-term is and The dependent Valley pressure The We this was project preliminary is U.S. has Southern Corps Collins forward We're in at later the It pipe Fort Pipe. project session of project. Army Assembly. of slowed year, commit which will start to tracking to slowdown solid. pipe XX summary, Authority appears XXXX. COVID project a this X. River shifted forecasted the with XXXX, receive started from approximately of system. Nevada projects miles recently be year. to the water include Water The begin program has Supply water the have activity a expansion begun tentatively over delivery miles in storage Southern scheduled on the The design Supply the this Integrated to which these and of area. mile in to in market, site's the tracking in Northern of pipeline. XX part has Dakota, bulk inch Prop legislative construction involve with current late now full Legislative In funding. XXX mile the bid In the pressure of year, miles record of the for is of and of in pipeline miles the schedule the challenges up project Denver steel located by is expected to steel favorable, decision in two despite Engineers bidding Colorado, closely Northwest discussion XXXX budget The XXXX

pressure anyone to believe continue we've range supplier widest the with be that capabilities seen of we're critical. business. period upcoming to delays which the result We to very project replace in aging The remains extended the in the infrastructure pile-up, water project and pipe in that causing transmission meet an to choice need growing steel system in strong bidding the an seem U.S. of market of requirements of to could needs demand the grid

of momentum for from continued near our the book order part suggests this the addition, strong business be our will future. that In precast

quarter throughout for second-half all optimistic I'd execution year complexities when like us XXXX, the well operational that remain our will doing so in our execute first safely. strong balance our sheet cautiously strong. to and liquidity of All of strategy. maintaining the We thank in pronged and positions combined two stabilize we'll finish the to of employees for sincerely their strong the with conditions growth of this

Number walk on Looking the grow number persistent volume, every keep ahead, throughout quarter And focus the the to company. our financial through a the and detail. now to company. top will our three number continuing Aaron, remain of greater on opportunities pandemic. least, in of at turn our last but efficiencies employees all I'll priority reductions over first strategic two, levels we'll focused to implement cost call certainly identifying precaution safe not taking margin to results over one, ongoing who

Aaron Wilkins

all hope and Thank your I our quarter remain families results. with I'll today first you begin safe you, Scott, everyone. and and good morning healthy. of

were $X.X was income $X.XX or to inventory first diluted share to items diluted net GAAP million the compared of Saginaw no $X.X million, Geneva, offset the items. income fire quarter associated incremental our by or with costs quarter per first in There facility, $X.XX XXXX. adjustments were million, for our Our measures $X.X Adjusted income $X.X share, non-GAAP charges per from adjustments. in for it impact net the of we refer million diluted or transaction resulting excludes first and of quarter the the to at of our included provide financial net of XXXX. quarter and costs associated income of reconciliation consider Please was for XXXX $X.X first Adjusted $X.X and and $X.XX share net for acquisition per of detailing which million these and partially the release the schedule production earnings unusual unique comparability to with a purposes. tax comprehensive million,

Our $XX.X year. the for revenues quarter of in acquisition sales $X in of of $X.X changes net quarter pipe. given January XXXX, in compared highly between prior-year compared indicator and nature to from Please timing. million per of million, comparability increase of $XX.X $XX.X X% sales steel the to XXXX. margin a unique on to tons production are million XX.X% primarily in first ton million, systems X% are quarter of only X% to mix of were XXXX. we resulting not always closed metrics results contribution change quarter decrease decreased to to manufacture, our XX Due transmission project This best $X.X increased in offset and to month the to in of due decreased XXXX that last Geneva Legacy timing dependent pressure XX.X% note included X.X% resulting profit a Gross first quarter mix. quarter in water first the mix, partially the year-ago the produced of million million is tons by changes or compared in the sales Geneva the from product in productivity which project in selling product offset was due project partially Geneva. product sales months two from a price by on periods of the first from extra of or first that the

costs For first $X.X comparison in the million production acquisition quarter by the fire, related million of charges. Saginaw for gross inventory was purposes, profit reduced incremental $X.X XXXX and in of

that general to items, quarter to decline anything addition costs Selling, and Excluding in the of full-year first approximately of compensation XXXX. $XX quarter have the been primarily be margin quarter gross XXXX expenses general the XXXX. XXXX. first partially XX.X%. the and profit would XX.X% quarter lower administrative offset in first to in $X.X acquisition quarter selling, of and with were of XXXX, the expenses for incurred by million of Geneva $X.X compared XXXX these for The due million the was first Barring $X.X nature, we higher of million transactional the expect in in administrative our related transaction expenses and first decreased million to related of

quarter quarter the Our to first was income in XXXX. in tax rate first the XX.X%, XX.X% of compared

to a benefit pronounced on combination relatively The was compensation due to by first adjusted rate during low income was which this The for expecting Geneva. we a XX.X% the pretax of in stock-based less unusually tax by expenses full-year effective XXXX the year. quarter, non-deductible in of earned than book the first the quarter acquisition point with the were impacted is associated windfall income XXXX rate of quarter high

which This the capital. we net XXXX, operating working cash in the due to in in financial net Now first quarter swings compare funding provided cash to from in of largely favorable condition, operating capital during million activities our transitioning flows to used was increased working to activities cash $X.X quarter million and $XX due by requirements.

nearly addition in consisting available of the to line as effect through fully $XX.X steel $X.X become credit. from cash market manage additional XX, to million, challenges equivalents At are and million expected sheet and we had we of upwards business. million markets and total positioned cash approximately our our million from requirements of Scott our working million was March mentioned, expect of prices financing of availability liquidity $XX $XX debt the Depending our growth this strategy. in in quarter, year, the end amortization steel As range Depreciation at the of $XX assets well was in for XXXX million to and outstanding in increase steel experienced balance add liquidity the of and and in the through million the prices inventories increase depending on remains could $X other and in quarter. levels. expected market volatile challenge to $XX capital Thankfully, recent balance and $XX full-year, to be first reflected. contract the million have factors on the production for We

$X.X quarter million. XXXX totaled first capital expenditures Our

given We pick summary, with in quarter In between million were will first the to full-year pace especially supply consisting climate over at like I to spending financial session. thanks XXXX $XX million pandemic. CapEx. begin result it spending maintenance I'd Pipe. question-and-answer and which our employees macroeconomic and very ongoing will for expect $XX support of chain to all of the constraints Northwest now and of to the their pleased loyal the results, extend ongoing CapEx shareholders up, my considering operator entirely we challenging our dedicated to the the turn

Operator

We D.A. question session. Davidson. begin from will Our Thielman question-and-answer with first today will the Instructions] [Operator Brent now come

Brent Thielman

morning, and Aaron. Hey, Scott good

Scott Montross

How are Brent. you? Hey,

Aaron Wilkins

Hello, Brent.

Brent Thielman

of that looking here pushes might you down? else more come that can there. a just second swell jobs give little terms of Scott, sounded around you. discussion are more more any guess solidify Thank bit Okay. been slate I to you jobs that, confident quarter offer tracking, I'm forward in starting seeing schedule. a anything the you about maybe you some you've for could maybe the that the in comfort

Scott Montross

kind $XXX to last change, the somewhere Brent, of the out it of into the starting the then Yes, of second-half we and of future. first I in the are about sled there's here I out of was of obviously down, and What jobs in attraction probably and XXXX worth point, XXXX, is future, already -- million up of area in XXXX, stack could out second-half area. bidding move-outs we on jobs this abate you when out and good saw mean, like see coming area look point certain about that work, period and of between think $XX million gain are we $XX now, good And those million. the the the into call, really somewhere demand to quarter slate appears slow are pretty ultimately, the And that appears we of a certainly pretty to but at the starting can of things always starting up for a while it at now. this certainly have a of things talked

the that on and think more jobs, to that second-half in at maybe come are of appears look But line the in year, the starting stabilize to maybe it little later can You where in are. of starts year. jobs say stability the the a things that certainly second-half with we bit

Brent Thielman

pretty Appreciate pretty that timeframe maybe this that that. sits is point? context of sounds book against Geneva I to order you've the still any The that Okay, that meaningful encouraging, you're at are products these any guess at that all new more that on? where Or it. introducing right. early it And owned

Scott Montross

when each to you look book. at of question the on the I order think

Geneva, obviously, through talked order about the as first we is quarter. First, for even we as quarter we've pretty slow always which proceeded had book, a a strong

slowed of order as seen as are products the them of part think the point, there, And and since started. little the slow us those pipe book the at bit strong we've we've unfortunately look getting continued gain had to out the And come it line at with manhole; probably down a is I as quarter, new perfect company. that As we've it's the that this pandemics out strength.

manuals and in there's what they life in as And you lot reinforced do protect a potential, we'd started. on really the precast to of -- not sewers, concrete significantly forward. organic ultimate think products troughs XX% going But in and products, sewer gas get we a only providing and corrosive as our We like end products we of but a manhole forward. and Probably So RCP to legs got going when somewhere the manholes a cost against those are we're the look of businesses obviously, area concrete of just products of not traditional those product hydrogen as sulfide to very there's because lot think those that those in extend liners XX% forward, of side, the go some many protect to growth to at between there's pipe. users starting which municipalities and application long-term products than longer liners and effective liners growth possible.

users pretty get with really the working a we're So into the now, on heavy that to marketing system. campaign that and end with

we're just right getting now. So really started

Brent Thielman

market. And pricing the you're get understood. question bid delays, Is it given industry the that think the just, get inflation now was a seeing, just these it right would market. pricing same you in irrational coming some least direction. Okay, I that is participants I cost? the of movement the whenever and is and all in what some in at Despite on work the get to

Scott Montross

matter the start of I first what all quarter where say you What move like a and in we to we that the second-half get these year. get out the in is for that in of projects saw you situation, later 'XX, to saw would when XXXX,

margins it we've little for there's in that that longer-term. a there starting But right of market that's near-term out think second of a get we seeing bit certainly on, with panic period as bidding talked go diminish potentially of along little appears both everything and You it it, to looking there because panic now, mid-term people the the with as out to a to come what that starts affect that quarter, through that and forward as we're the bit and bidding starting goes diminish time. with is I jobs about

little bit right my that that more steel get running know, say And think steel the as And things selling you I I was The And business now. rational first changed were a steel. steel years rapidly. starting prices the would and thing. very in very, XX to would steel with so plants

I in so just cases are these project -- rapidly in it's most keeping is it most some that with cases that. few completely believe cases, and you pricing keep couldn't up So that think In is. with, up the changed that I but cases

I fourth That's we're a of was the is like band. FOB time, end where the So, the you a pricing hot we first would it's publication as it hot mill-based And When $XXXX it somewhere rolled the the go for things look the what look XXX area seeing of end that's at for what quarter one steel of steel at the say see of band. and XXXX the the at pushing in rolled quarter ton. higher pricing we $XXXX quarter out you is was think just tip When project I forward. of of about average right fourth in now now is really the any the iceberg.

what as projects, think doing pricing up. I to the with just So it's see iceberg the starting tip the of on the pushing pricing as we're far

Brent Thielman

you've infrastructure around you seen what think from business? big in context of last just that I about and driven Anything bill the in could lot Scott, a news different we of your so far lot a Okay, that take guess one. numbers about are numbers. the

Scott Montross

funds. somewhere very which $XX the Drinking We're the about a Act, all we've generally obviously And to it's Revolving year. about excited sets aside got think Water it's $X positive. billion Safe amendment for funds, to State an into leaked billion billion extend $X Yes, State that I Revolving

that period long lead area it. -- it's try slated from of time, trillion major as $XX billion package to system. extended, remove looks Part infrastructure about the relatively there's being far right point. of like for billion, over I $XXX that's this pipes water is about portable it's as the now at been $X like that's looks So water talked the think the or somewhere in that's It about of a package

So happened in there is Michigan. no exposure that Flint, like

projects for pretty coming system. So, somewhere of projects over about resulting period in we're time, the major in some through in that the of leaves $XX billion area about water excited other which other that

So of we I think demand adds that into out just as future. the to look kind

Brent Thielman

for Okay, great. thanks Scott. question, taking Well, the

Scott Montross

Brent. Absolutely,

Operator

question comes Richard from Our next Gus Northland. with

Gus Richard

Yes, thanks for taking the question.

Scott Montross

Gus. Hi,

Gus Richard

give what The and is dynamic. gross pretty margin are qualitatively are Fuel or on next a environment -- sense the you crazy. kind up. at four us the over Things least puts guys. takes prices quarters? going Can stacking Hi, of three

Scott Montross

think like the call. about talked we I that in

think I remains the pretty second challenging. quarter Gus.

in relying facilities the mill in first to happen the have the one the market they're in Like supply of height in for the run few that it's blast would be to situation said, that had we have second work is continuing at where look going in delays quarter and is going happen have second of steel quarter. outages, second of a think furnaces year. I big you $XX worth the between quarter, quarter. the and down the I million second likely things quarter, million some and of probably the somewhere the quarter that $XX in pricing this of moving When because a the middle of second delivery and to we're we issues this having where nature. But demand up also you

out. area availability market takes So probably to somewhere of the tons that about another million in the

continue So issues we the that quarter things supply. and in we to believe could related steel to delivery see

jobs into the said, As starting to to we the I starting the I've delaying year, we're future see the diminish. second-half as of into that think get

to we're little we've really a taken see relatively So place industry under like remains bit, But of steel up to going to bit think up year. to think later second-half we get prices improve of the in market normalize, continue think of the steel mergers have I that some I see, the additional the, in and I start where starting the the them the in in if their the availability year, supply to and are be capacity starts new mean show. and strong starts demand the capacity, to that area going little we to the able some into high an demand stack I remain And the to legs go jobs a better. got

happens So around. that in if jobs, to don't continue move

I go think as of through the rest here from the on the margin pressure you see year. upward you

Gus Richard

need very on Got the new then Texas and a they their And market, there, competitor sell I'm it. helpful. plant. you've just That's got sure to

the it is, use that or it pressure I abated make to sounds want pricing sure? You from but like just

Scott Montross

bit have when a think What you're have and you situation times, where a least margins of steel come is you've situation, project pressure little a for a is pricing certainly under the I market. to in going what this little like pressure period price of where get margins up. you the indicated probably because prices the come into forcing of at more entrance the under if bit new it's a

see period a there. new improve. backlogs that recover we forward maybe of continues or that You so continuing but start the demand could And start normalizing a remain long in as you time, to margin see of several and out long time as levels little after several they plan region the definitely so that And we Texas, bit then I certainly wide in demand with business levels on, the and to for bit. for months in a the strong people industry think seemed coming that a a with things come think after the they know as stretch down strong period going months, think been out And forward to down the there know, that have that normalized market, specific I you time. longer, the see when a

Gus Richard

one for last cetera. do Can bit any any order you what about guidance efficiencies, me, on a cost cost you little your then continuing you can et manufacturing to to reductions, And work it. bring down, have structure there? on targets Got talked in

Scott Montross

annualized per X% annual try jobs hours we're the year hours job in hours basis. anywhere Yes, do And an from what to normally man reduction that an we to and the specific for basis, year. measuring target about specific on man a percent or targeting to from is on on it

Gus Richard

it. Got

Scott Montross

were of outside at porch looking and at with a plant. -- things taking [Multiple mean at there's an start now, automation continue Speakers] helping costs you drive manufacturing we're at inefficiencies things when home we've looking to that to and like efficiencies -- level that us out, other at the lean like efficiencies firm pieces looking and got looking with we our

So reduction ever so. cost work never stops

Gus Richard

Got That's for it it, me. Thanks much. very right, okay. All so good.

Operator

[Operator Mike comes Company. & Instructions] with Walthausen Our next Morales question from

Mike Morales

morning staying safe, questions. I good Hope we're while taking Aaron. appreciate and Hi, and Scott the you

Scott Montross

Hi, Mike.

Aaron Wilkins

Mike. Hi,

Mike Morales

Hi, folks.

had you it just again that want So release a what make circle of in and project to comment means. that sense stacking in really prepared I up, about I this requirements the the have back the to understand quickly and remarks to fully sure

Am bid I understand Scott, enter didn't So and pressure right my programs bid and I is going these weren't and second-half, they in alleviating is canceled here timeline, that and way you if about correctly, and thinking margins going right? your to it, are, the sometime of that are that along help with bidding there? all saying the production things potentially that they're should utilization

Aaron Wilkins

pushed get believe approximately it might of you of quarter, to that place what year, could out first the $XX but XXXX the is see XXXX. starts think million out in of some that million of of that, some pushed we second-half into pushed leak also $XX $XXX the second-half out and of in I take to

how the it around. So around, now, too, these for projects been starting of it this We depends how footholds taking the this again, but and it is while And can and year. you've hold stops, around second-half can that XXXX in they of projects what Mike, does get to around just think But we could move we're affect moving the appear too. but right move be to where that places. some seeing it starting really out a in are be certain diminish could into

Mike Morales

relates and two, that compelling like phrase to And could next a that's year bidding earnings just the perspective bit kind hesitate or of you story been be from I up. that and catch seems as of in kind of the a now sounds there's of to over opportunity the put like for as things have it use Sure. guys this coiled off a winning it it an the spring business little pretty

guess as I prices guys, and a can Is is I there. on the you of there? in touched for that prices labor? raw what's How for know lot Are on real you of on not always big don't Northwest as you high steel are that guys know, about others? a but And volatile going you the thing call there all You materials wrench that any companies bother out said has is deal you managing have the One it that do. guys to been labor. talking headwinds some is

Aaron Wilkins

We've seeing where No, but issue continue slim bit is the a work for the constantly labor put that to every points. that's be out we're that getting since people replacing need you a plants way sure little full-time of focus you on are that, harder hiring I on get. pandemic. people is one through of bit mic make because we your constant right got little been resources And is now. actually similar beginning or it's such our in potential the a that everybody very think an the a workforce some the especially that we to of to working people And amount hiring there it's issue

Mike Morales

any is business this then? advantage of a capacity From yourself you Right. legacy standpoint, to find you in bidding folks capacity of to that need there for environment add strong take any the

Aaron Wilkins

tons of at I of plant. what Mike, looking rated capacity our the we have we as somewhere about the XXX,XXX probably in No, rated capacity at think as probably area far is,

be have then of the If have open we to to additional this handle we plenty certainly happens, right appears capacity capacity it. we'll work work. up all stacking run that now that So

Mike Morales

Aaron, I you. and thank Scott always. Fantastic. appreciate as the Be color well,

Aaron Wilkins

Mike. Thanks,

Operator

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

Scott Montross

conclude remainder call on everybody our for outlook the for cautious Thank thanks optimism joining the to reiterating like the by you. And to today. I'd again of the year.

delays I critical. that infrastructure of remains continue remains continued that critical in the business and think strong the the despite water to need United States XXXX, we in structure the for believe bidding our

The we're the backlog, that and demand million consecutive that XXth based optimistic quarter mark the for need which continue around. evident expand continuing again XXX our sheet Northwest even with and with on we'll our quarter are continued operations think grow that to is environment healthy position. I remains customers, you jobs to surpassed with Pipe of and and shift dedication speaking precast healthy our again look all to balance stockholders forward Company. support loyal second August. to on in We your liquidity strong employees, suppliers, of you to call all for the Thank our our

well. be and you thank So,

Operator

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

You disconnect. may now

Northwest Pipe (NWPX) 8 May 212021 Q1 Earnings call transcript