NWPX - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to Northwest Pipe Company Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Scott Montross, President and Chief Executive Officer. you. Thank

begin. may You

Scott Montross

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

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

and quarter we the financial note information to effective I I'd our internal and structure with our allocate begin, performance management resources. better Before like changes used revised structure align assess in of the to that reporting fourth XXXX, our made our in to

for moving Engineered SPP short, and for such, or Engineered Infrastructure we reporting or short. Pipe As Steel and Pressure operating be two Precast forward. will on Precast segments Systems

water involves steel manufacture Steel hydroelectric These newer for wastewater products also applications, for power who in pipeline Pressure water systems, are to of to are large For Pipe our applications. story, may high-pressure drinking you related our primarily be and those which infrastructure systems. systems use used systems other diameter, Engineered the segment of

concrete reinforced precast as and of on environmental a greater I'd year-over-year million. turn box vaults, segment SPP the of the other increased will segment also separators, products, which catch then jobs manufacture record review production and XXXX. in months some culverts, our of in water primarily $XX by I'll Our that We generated fourth basins, steel already performance. of $XXX.X ParkUSA walk delays annual biofiltration this from jobs the completed detail. financials and bidding to and involves solutions. quarter than XXXX revenue ParkUSA. out decreased Systems cases Engineered offset we pushed XXXX, our stations, you production experienced million, Infrastructure of our high to pricing into full oil We XXXX now X.X% volumes including project engineered backlog. as Precast million our high-quality October of partially manholes, represents And attribute in in acquisition customer-driven and note we less three lift toward was and beyond. X, which year included acquisition revenue Annual revenue increase delays and the through from $XXX.X contribution an pump Aaron, year

$XXX pressure seen for segment we've the of experienced as As transmission $XXX number of XX, $XXX SPP XXXX steel during pipe to of we confirmed years and bidding was December in smallest December a long very project delays water June significant in compared including XX, XXXX. tonnage The bidding of XXXX record resulted of million previous time. of one XXst, orders compared million, our record as our backlog the to a million

moved XXXX, been environment. helped up partially improve Furthermore, first a our quarter that in in bid market XXXX. substantially pick out However, a XXXX, we were projects bidding successful the in small projects volume high percentage of late seeing in we've of of did winning the that related backlog to which

the expect continue of levels as should lead increase at progress grow operation, We of to and million, XXXX. a $XX.X XXXX. through which terms in January Annual year-over-year XX.X% to sales by segment, quality, we of enhanced margin acquired backlog half our from precast XX% driven which first our our in increased will in to Geneva size revenue we

increases X, margins, due the as, addition, our the and our on Park, well strong locations, Park. of strength at year our contribution throughout remained contribution In higher inherent in which was business volumes XXXX, we implementation fourth to from from production as the which benefited price of from throughout $XX several Geneva a acquired quarter precast fourth partial million quarter was of The October XXXX.

of highs included order million total was Precast also XXXX. $XX of compared million $XX as XX, in that Our September book as as to XX, that the December million XX, and December I'd XXXX, remains $XX period of the all-time XXXX ParkUSA. book note December XX, for first XXXX at order

higher Partially decline Precast was XXX which under-absorption. down process in resulted XXXX, the points steel Our projects at of throughout our and market of a of highly delays to pressure transmission consolidated was gross which backlog, the our a challenges SPP market the the for consolidated fluid the in margin to bidding market, to margins much with gross already permitting, market orders The resulted combination pandemic, pipe in disruptions very which to levels margins remained decreased water million, in pressure such XXXX. XX.X% customer-driven the In related SPP SPP strong delivery related throughout reduced production XX.X% small our in led resulted significant small and engineering and production $XX.X on overall took due here. margin a project year-over-year longer complex gross small a pricing bidding downward basis in facilities and steel in due in SPP in year. pressure part volumes a the year given from profit our volatile of of much offsetting environment to

backlog periods transmission business. pressures as very stabilizer through serve our first and that margins anticipate will as a older operations water quarter small to a muted, market. remain to for both was Precast during water line top XXXX the subject related the bidding reminder, a transmission margins we to the our We As slow work gross

However, the XXXX from in strong sticking part has moving to been XXXX. and in early orders in project XXXX very due bidding

As have such, should transmission margins the being. water we steel expect Further, in begin abated expand and quarter. that issues to time for believe we second delivery-related the supply largely

late the seeing have world. steel Again, events current more XXXX, seeing given while fallen highs some saw recently. historical In remain steel upward addition, and they we we pricing in standards on the the by elevated pressure from prices in that we're are

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

we our the on space Transmission time of while Pressure Precast First, at driving to maximize our remain objective business. focused same Water Pipe continuing Steel core growth the in related

manufacturing announced, addition As space acquisition Texas of Precast-related three ParkUSA through the previously we in of October our in the significantly participation helped our facilities. increase

periods those Park, distributes For and familiar solution wastewater environmental pressure water helps aren't control water-related our balance steel products. serves construction and of commercial products market portfolio as who and other portfolio it's you develops product as product leader manufactures well technology better both pipe. a variability and offset in with of residential The which markets, Park infrastructure the in engineered that water

value-added, portfolio In is is to heavily beneficial addition, profile. margin our very which Park's

Pipe means our we Park's Northwest for throughout given This integration to the balance We for expansion products business moving expected are potential forward, well which of very is product what is as The the has and a been excited our the be focus and very it a about refer key last existing facilities. integration to within spread, will ParkUSA once year. is process the complete. process going

We company. expect growth be and business throughout opportunities accretive the create to immediately organic the

our issued Xth replay presentation well October available the as regarding For and expanding ParkUSA growth Geneva October conference from details our press operations, the release been to all on please our Xth, additional on to which the company website. focused further strategy. capacity see call regard page we've acquisition, Investor In on of our as are supplemental of we

are form to expansions, concrete at upgrades of of new plants Concrete the $XX invest meet Pipe Reinforced equipment part for facility projects Geneva products. and million automation, committed market we in this As demand the the capital growing in improvement endeavor, to over other

have produce these and organic water, of ParkUSA from also potential manufacturing plants our at the as pertains sanitary products manufacturing it sanitary We locations. to sell started and our protect significant lined sewer at RCP, eventually In believe storm wastewater. microbial growth Geneva types to induced industrial we and concrete especially when to corrosion to addition sewer which solutions, spreading strategy products municipal products these utility, product exposed

of volume, approximately realize cost lean of per business in drive hours lean continued to annually processes and growth expect equipment to Through Water by this job projects. prior savings us to the and is and past second to year efficiencies hydro change reductions over we to efforts upgrading the cycle-time to reconfiguring number cost man strategy between drive pipe steel company. X.XX% all testing of we The our progress core levels ranging by margin to allowing maximize pressure on focus and additional $XXX,XXX Further, the year like $XXX,XXX on time. over versus our reduced reduce prong at our Transmission value. We've shareholder our make to manufacturing, continue

and offerings. $XX,XXX. a fourth kilowatt-hours resulted We're at seismic improve for of in by evaluating term In I livability R&D particularly that is of regard ownership a outside helps System communities now introduced for turn reduction cost Oregon look Transmission cost use addition improve and work of of in resources represents transmission patent-pending work In live Water reductions. products, at which used SPP Joint to and opportunities reduce Trust Resilient upcoming realizing tools which the in energy with in prime during substantially we to we engineering in longevity example the versus process projects. our active have resilience our we manufacturing earthquake annualized XX% the additional longer Energy efforts our working current zones. pipelines savings by done zones lean and of steel will explore been been has and to lower InfraShield lifetime water in other which nearing cost quarter continually geohazard the in and using InfraShield to Seismic of an our to

are infrastructure Central program the XX,XXX major legislative in Valley built U.S. is pipeline in on began X.X-mile to includes forecasted and Ralph dam summer, project having in project regular pipeline received XX,XXX-ton Authority The Hall Red under Red a now representing facilities includes Acceleration has projects River the Regional both XXXX. delayed into Texas for This has for another XXXX in drought demonstration North anticipate through The regional funding state of design new the funding progress nine-mile the additional some for November another bid. a in pipe. XXXX Water in and funds with dam and to authorities for being created the next We pipeline for we XXXX, California's The reservoir of Water few of the District. This XX% Supply session and the The early DFW next made new representing the Water Infrastructure appears tons program for years. to available, Lake California area. Water Northern up Fort record Texas currently The of is the Project. as Water additional over of to Corps If Regional an for is be parts in represents in XX,XXX Water general funds Upper According stations in XXXX. and tons next water Supply November pipeline North XXXX Natural Collins Act XXX segment tons needed various of commences XXXX multiple H.R. project considered, secured held been action is and In water be involved multiagency a billion $XX already XXX-mile, move in the Houston of XXXX. program. In water projects Alliance Regional of In a Valley construction XX record $X.X backlog. ongoing expected north the market Prop Construction in commencing X,XXX been special in this federal miles that the treatment the January law in the in five legislative projects made Colorado, adding projects in and expected the billion begin We Metroplex. markets, to Construction is but markets, water is bond fiscal on Dakota, state. expected Western Resources funding large to the relevant signed administrative program Army year. is is XXXX. Investment expected expected the bid at significant X of to by those decision much Jobs federal to Rescue XXXX construction within the Denver a located decision into Project. to an Integrated infrastructure including multiyear significant updates. the is completed In Plan miles timeline for Engineers being of Looking segments is started with remaining expected project the have of and tracking Eastern Surface appropriated favorable now Act. multiagency Authorities. to until by pump holding American West bid. pipe has no Harris in has tons is Agency, X,XXX of County Trinity project River start January still session

facility tons requirements program heading and reuse bidding City phases several over water XX% years. as Water facilities of Southern bidding, in conjunction new two California involves in have phases is reuse program reuse refill will diameter conveyance these continue to California. generated result of early will full-scale in the October These cost. year. been secured current of LA the reclamation of which X,XXX for in XX-plus XX Diego anticipated of be for construction of for almost market MWD about permitting one of preliminary funding tons activity the program and X,XXX years. next expect PCCP treat -- months. XXXX. a the treatment to design with Water remaining Pure in This currently will demonstration over XXXX nearly $XXX could loan expect large in services pipe. MWD miles the the begin regional steel San project we It pilot opportunities next has and million from the pipe. is include The The District. Sanitation operating a years. in largest major the We XX out recycle next MWD of three the stretch construction annually MWD as projects to facilities which anticipates soliciting in see The funding and programs rehabilitation XX which next

be which a related. slowdown COVID work seen We this this have in year, appears to

to The project water XX It storage So the timing a or site's miles of has received later that forecast reservoir XXXX year. of funding these The pipeline. is projects Prop has project this to begin shifted from X. in is over will XXX-inch XXXX. involve

amount Utah. provide pipeline miles continues Nevada southern program of Water an tentatively with an recently water In pipe forward in and permitting Lake activity alternative delivery This has include of with the includes the Navajo-Gallup business future design experienced a that for design supported book started infrastructure SPP of the is SPP book source in system. will program. pandemic-related we saw second a order increasing pipeline. despite in related pipe. and we quarter. balance The addition years beginning Park phase precast Reclamation's proceeding seasonally Bureau earnest grow continue for as In fairly margin by positions strong precast growth. of very expected three is should us that pipeline XXXX strength our the on we the in as as And of bid in expect strength of program with to final mid-XXXX both U.S. needs of goal is of construction XXXX. expansion tons level we water lead throughout to XXXX. business the steel Construction SPP The in New for this record And as major pleased in States. well entered our which summary, are the bidding we said XXXX will has preliminary backlog begun expansion occurred United XXX-mile XXXX. earnest to part Authority the Powell will remain in for for XX-inch XXXX, order to within our Southern have precast size, XX-inch X,XXX expected of We with on momentum is their the This Mexico of XX Supply our the SPP the of moving throughout of to scheduled and time our the issues slower year, similar have ongoing which considerable Utah, construction Southern well

to thank possible, as margin for continuing with company opportunities to Northwest of cost all once and at environment the I every work financial solid on focused integration forward our through employees will quickly detail. ParkUSA. identify call through walk priority we levels all. a to top we safe to will their the efficiencies and the I'd of over precaution will persistent company reductions greater completed all commitment I work to strategic a like efficiently and who remain XXXX. our Looking the now and the have ParkUSA volume, results focus to having taking to in pandemic, ahead, on maintaining employees of look ongoing Aaron Pipe over for integrating a safe productive our to operational execution turn keep ongoing implement grow as our continuing

Aaron Wilkins

everyone. Thank and Scott, good morning, you,

net our our to diluted share start reflect or Precast fourth million, been in financial Infrastructure period The restated million $X.XX diluted our or we Scott income reflect quarter $X.XX XXXX. As Pipe Consolidated highlighted, fourth and I'll $X.X share historical has per compared with segment quarter segments: results. financial per current Pressure $X.X segmentation. now to have of two discussed the historical was Engineered Systems. practices Engineered Steel information revised reporting reportable to today and

transaction the inventory costs, offset included in of specific tax the acquisition-related income of $X.X associated by with acquisition-related were million amortization million and items. partially $X.X related of charges expense million the assets net ParkUSA, of quarter $X.X fourth acquired intangible consolidated million of to which XXXX Our to $X.X aforementioned

purposes reported adjusted comparability income, we also and these which items. unique For net unusual excludes

$XX.X or in of sales period. XXXX, release increase in compared mix, to $X.X the comprehensive to increased XXXX. at for million, prices. resulting produced, million the refer increased from $X.X sales sales by in financial timing. due from input million addition in adjusted volumes partially XX.X% to earlier. tons or or XX.X% from XX.X% or of primarily of each million pressure increased shipments SPP net fourth Included operations compared fourth acquisition-related XX.X% to was $XX.X due million by in to compared gross and gross costs Precast ton, sales in diluted X% XX.X% Precast to the compared to net $XX.X and or shipment XXXX, increase on million per in or ParkUSA, as selling or Please Consolidated a fourth in increase non-GAAP primarily contribution segment due to our XX% segment which XXX.X% $XX.X is increase share, million, well $X.X steel to million $XXX.X sales to Precast a income of quarter XX.X% for million with selling the which $X.X offset XXX.X% X.X% from earnings production XXXX. offset lower primarily prices adjustments operations. million in from profit to were $X.X due price reconciliation gross selling sales at in $X.XX and increased a in million for contribution Precast profit of as XXXX. our changes sales Our in the in $XX prices. $XX.X diluted increased gross to from was million the in changes quarter XXXX, in per higher million to million $X.X sales to XX% XXXX, compared profit schedule, sales, to decrease quarter due detailing XX% project of decreased quarter quarter of a primarily $XX.X partially of along to Geneva $XX.X in of $XX our increased Geneva in Scott sales fourth ParkUSA's XX.X% Consolidated volumes profit in million $X.XX to segment X% the measures discussed million XX.X% pricing, increased or XX.X% per share operations, This to charges. of product SPP the resulting

XX.X% item, been gross Excluding segment's have the XXXX. quarter the fourth this would margin of Precast for

expenses ParkUSA, to acquired not associated impact compared increase included specific of transaction Looking $XX.X Selling, expect significant do million in was $X.X increased million gross costs administrative our on forward, in the intangible from with almost due charges to we acquisition-related the XXXX. amortization margins. ParkUSA general quarter fourth addition to entirely $X.X which of $X.X million XX.X% of assets. the period and The new million, and

the In personnel, the added aforementioned run primarily are has that to related million amortization rate quarterly addition to non-cash approximately SG&A for our $X.X of addition ParkUSA expense, costs in nature.

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

XX% segment our sales a mix, fire Our offset to well by changes project in one-time $XXX.X excluded $XXX.X timing. increase by price sales expenses again to acquisition X% million $XX.X XX.X% offset partially XXXX which the compared associated or million shipments of an as in million of additional million a material in Saginaw the ParkUSA as driven increased million sales partially of income acquisition-related XX.X% million of resulted to to unique in selling ton increase net a to which product million to changes respective XXXX, compared XXXX, XXXX, as XXXX, XX% tons compared the decrease of XX.X% XXXX profit at income XXXX in $X.X or ParkUSA XX.X% excludes XXXX X.X% XXXX to of net XX% increased adjusted increase acquisition net adjusted in well $XX.X as net to addition XX.X% of Steel XXXX compared due combination of gross $XX.X Consolidated October that, the in and a largely sales compared due segment of to to month sales XXXX. as in million gross in in well includes year. million profit selling of in of and of due to of compared sales in Geneva sales due XXXX, segment to shipments insurance million decreased Geneva, million compared in or Recall to increased SPP an in XX.X% per due cost sales XXXX, in in XX.X% in increased This $XXX.X on million to net produced $X.X the XX% Pipe in million $X.X XXXX. pressure $XXX.X Precast prices. consisted project increase $XX.X our Consolidated to associated decreased from net million or by the the with as which $XX.X changes taxes taxes. of in net to with XXXX, X% to of acquisition product mix Geneva recoveries. within items Pressure timing $X $XX.X pricing.

charges operations. our fourth XXX.X% acquisition-related gross Precast included fire, to XX.X% due or prices facility recently in administrative in higher to in segment and XXXX, XX.X% compared compared consolidated $XX.X XX.X%, or XXXX of incremental the associated charges. sales After adjusted million profit in The production adjusted in XX.X% of from and expense higher and profit expense gross the gross $X.X for in the intangible XXXX separate in $XX as million sales X.X% insurance of ParkUSA expenses general, margin in amortization $X.X was higher in compensation-related business inventory to to of were to as as expense increase of XXXX, transaction XX% April precast primarily in of respectively. recovery considering $X.X or million million of increased the in well million XXXX, resulting due net contribution of Geneva ParkUSA XXXX, net Additionally, XXXX, a sales sales million increased of this costs, acquired to XX.X%. largely and acquisition-related Selling, X.X% SG&A consisted and $X.X of Precast volume production gross the quarter's $XX higher segment acquisition-related result and at or million recorded and million $X.X million the with costs at Saginaw interruption addition $X.X of in an assets. margins XXXX, increased was XXXX.

range Company-wide full expense year and million our in the million. be million of $XX.X to $XX depreciation general, million compared we XXXX, of to in the For XXXX, and $XX amortization expenses was estimate XXXX. selling, administrative to in consolidated $XX.X

in expect and the range to increased be of $X.X to XXXX. $X.X XXXX, amortization in to for million million to compared We million $XX depreciation expense Interest in $XX XXXX. million

through our to of move we to As business current XXXX, tightening SPP and expect needs the rate I working our environment. capital interest cost vary the with with

XX.X%. XXXX Effective was impacted valuation our in estimated expense in allowance. XXXX income rate tax in tax of million effective income XXXX rate XX%, Our by $X.X effective resulting was $X.X changes tax in income million for of primarily an an tax rate compared to

for While purposes. Geneva impacted acquisition that was were of with the income tax tax XXXX the by primarily costs rate for associated nondeductible

activities activities non-cash compared cash to transitioning to net of Now items by $XX.X XXXX income net of this used financial to $XX.X million $XX.X from of operating XXXX, XXXX. for XXXX. in cash operating compared million operating adjusted provided $X.X flow million we in in cash in operating our cash in million generated condition, flow Net

had $XX.X capacity. borrowings XXXX, of we and on As $XX borrowing additional credit million of million in facility XX, outstanding December our

liquidity our is borrowing We to to manage and meet believe are capital capacity working near-term available our our diligently sufficient needs. continuing

million. supply the totaled resulted for $XX.X in spend labor expenditures chain desired capital in and Our year constraints XXXX. Ongoing a than slower capital

of fourth $X.X payment highlighted late in million ordered as Scott the down make to our able reinforced pipe were on we mill expansion However, as our a efforts concrete earlier. quarter part

our remainder the are capital depend $XX for including spending will to advance are used XXXX acquisitions approximately pleased growth I the with million making for progress In broader timing million standard like pipe success. currently additional CapEx team summary, two-pronged we the to those million CapEx involved We be integration acknowledge XXXX I'd component of in the for on our are recent continued moment between forces. efforts, members $XX new our to made of investment which with critical a take in to to continue the $XX projects. XXXX and in economic in to primarily strategy. projecting mill replacement expect a

Your to XXXX I'd employees encourage of our safety sentiment echo also their engagement our extra appreciated. in all programs. on are for truly like continued in and efforts focus thanking efforts Scott's and

over to for the operator Pipe stockholders, like to I'd ongoing begin of Company. the suppliers Northwest their thank Finally, support session. our I to question-and-answer turn and now it customers will

Operator

Ladies Thank will and with [Operator Our Thielman a gentlemen proceed with the at time, of Brent comes session. question. question-and-answer Please we you. Davidson. line from this question first D.A. your Instructions] conducting

Brent Thielman

you. thank morning. Hey, Good

Scott Montross

morning. Good

Aaron Wilkins

Good morning.

Brent Thielman

the in can I Scott How commentary. on it the first of quarter much be you to first end question, like over the your presumably convert end here $XXX could of backlog just -- you million that sounds you XXXX? guess do at at think potentially based revenue in

Scott Montross

at you the right, What year is I would million. continued has finishing can the see $XXX backlog to grow, say as

this in stuff first of first we this the of a bidding first So in the time. part near-term. I XX,XXX is lot one tons have this seen And the larger are quarter relatively of is a quarters think we've of long biggest quarter, Brent okay? projects is that

backlog first If think So revenue we see strong in on we're going all that and run generally the that into backlog quality The strong some work long is proceeds proceed relatively the work, are to to first that starting have getting And pressure now to guess we pipe we have a going side. that period now. everything year, everything build pipe strong you're this think going year the the steel and bid pressure of time. quarter. the things out to that a the those if right better numbers. bidding it it's very second the of way margin pretty in to I over But steel way pretty quarter is that I remains spreads

Brent Thielman

there sort of Okay. this maybe been guess those opportunity well, some margins closer we as margins. Great. around the is you higher But because your progress XX% said thoughts Aaron, the gross onetime just out and items just year? price think through your Precast there. And catch-up implementing there current I on quarter. to as the of a I stripping costs absorbing thoughts you've increases then

Aaron Wilkins

the Geneva them tried utility high of gross really probably, The is which side more to are Water very Brent we've what precast is to. way characterize of the are the can on get to the gets always Transmission Yeah. piece it -- applications margins type

like price So in the this margins, and things prices go I got the the as forward. potentials you're kind going raw of that or and on probably the six just those Precast there but five the at side not when we cement, you move another one because that. think had material only year aggregates to actually We've increases looking low-XXs in continue are us,

with of the Precast right up So the the like our Precast now. build. with equipment, continue they're a you we're keeping to business the moving higher, has look the little way to in but is raw that mid-XXs it potential When looks margins maybe generally and part prices, bit more margin looks Park toward that at Precast material the it

I that So I relatively and that's order book think to as probably And quarter, the it's pressure good we Precast the what's is right bellwether. also now the gain really business, as $XX of pipe sit in the said Precast That script probably steel first in strength a strong continues similar in the at at we year happening to side. end think this we million. through

got bit we've as we of think a good right I So behind stand us now. momentum

Brent Thielman

guess mean Geneva it I of double-digit sort is mean reason clip any should to and moderate why I healthy still a that this looks I Yeah. that That's at like growing point Scott, here. hear. to good year? very Yeah,

Scott Montross

continues regional to pretty strong up, housing put units And a there's is in housing Utah. Geneva Utah We in X% grow. seeing in we're migration The of set residential really think below right? in rate in -- and a into Utah, the the unemployment We're what rate net economy, Utah. is they're I putting number continued place

us term seeing what this. in book we're order interest to to Fed on rates affect with continued the I So to near at front least strength. Utah. like a grow. be But can see in really right said, looks the eventually Obviously, what is Precast I think continues the of we And now, continue for the strong that

the the So this it's through all it side, Precast strong whether year to right Park sit the or on side be Geneva now. we looks way as

Brent Thielman

on. I’ll pass Thanks it Great. Okay. guys.

Scott Montross

Brent. Thanks.

Operator

[Operator Instructions] question. Our with line next Gus question the of your from comes Richard Northland. proceed with Please

Gus Richard

Yes. question. quarter Thanks for guys. Nice the taking

Scott Montross

Gus. Hey,

Gus Richard

much of to is of Hey. starts? And that quick other tied activities? the housing How is on Real it tied how much to business. Precast

Scott Montross

the at you Park of business the and applications, side say more or ends look to relatively of When like kind is to of side or piece whether water the of utility XX% of more it's or that industrial does, up pump what maybe side. gigantic stations that. backflow that Precast in Geneva lot A of does, more the from Park preventers that's that they're is big driven at look commercial Precast residential when piece. would meter away relatively side, stuff of the I what the Park vaults the small piece things large or commercial that you less residential the A tied significantly residential which or

Gus Richard

Okay.

blend Geneva Park? So XX-XX it blended, when it with when think like roughly sounds I about you

Scott Montross

close. Yes, that's probably relatively

Gus Richard

working Okay. that about And I bidding lower margin the then on stuff of through Can have got year, of given books last you you talk profile the sort think, you low through. work some the backlog? to activity

Scott Montross

Yes.

started, I was off. first really it's starting originally And the then I talking off, we're it was was to we rough the think -- XXXX about second when that the it's half fall half when of started fall think, it of XXXX. --

the well work tons of XXXX. really Actually expected lot to getting and lot half jobs second deteriorate. in to bidding around. of like with We second is that half of sent the a over that be related COVID A bidding strong into out being started XXX,XXX the was pushed it

lot of period a right, time. pressure, So during get that really it's market a with bidding of small market, you that,

right seeing now we're that see what bidding subjected being saw a So of pressure quarter really is to of in during fourth first expect time. to that period quarter, that the what lot we we

the backlog XXXX, margin-wise. XXXX work in is up. as As I would margin to And in what started of quality early bidding was of improve. concern continues to seen say the we the started improve we've late far really that what to And pick very the year part later the going into as got the in

to really And we see on good quite in second quarter there. some going we that got certainly of it's until in work continues I into we've the we pretty margin. bidding. get the And first what's quality expect, backlog So as said some think, to amount like forward. that progress that's in coming But backlog the expansion grow based frankly, be through we work to quarter

substantial. So it's pretty

Gus Richard

And get back range your to exiting you historic -- then think you can do of gross high margin the the year? end

Scott Montross

of in the for bit is, and a period back we'll environment? some It The can of really that get get bidding depends up there. market shape, to that we on period market the disruption right demand see competitors a You start happens how disruption then the falls we to and have and stable that issue period, stable If end is, extended way we has to good up that marketplace you solid time that we always get the with and backlogs see a that we getting all range have off industry-wide Gus. always are of we that good a can higher once now there's of it again. in see climb

that that's that say I -- right in are now. would direction heading we So

Gus Richard

Okay. And then from me. last one

and You you was happened gotten project about steel talk I eased with has forward? for mentioned delays little And what to that events. just bit, if particularly stabilized has and pricing but has going could seems be delivery bit delivery that better except recent a a wondering

Scott Montross

imported on start to That really to of steel bringing to XX, XXXs last We based you company that get we or and to issues to the of starting, the to steel, couldn't industry. the $X,XXX transportation could go get wasn't the and out almost Ukraine seen this $X,XXX demand up up bit what but the steel -- into down started with seeing lead the go down is to which other delivered conflict of back time. $X,XXX up in a $X,XXX world actually It supply way weeks started on now. profile a effect they to to prices $X,XXX what steel, -- me, to the affect XX back to and in They're somebody's that of we the out got able to prices of are what time. recent to got we Lead that to the where from we quarter we're and We're in if really significantly band the couple that later country, as move and fit hot throughout weeks, almost there the in steel seeing had into XXXX. issues bands And that's We're the most probably range. point abate also got rate second in. the caused the prices that all seen third point. country, beginning kind fell project fall XXXX, really tightness the costs ton not that we've But enough to Well, toward to really kind probably crest of got had we of start you kind come and the is still and delivery caused into to times again. period during ton we the as the pretty XXXX. a kind eight, forward. how on the to as book do still all events, we've saw caused on $X,XXX delay really hot-rolled excuse in have into that get restrictions ton. in as started really go continued order a at little Gus saw a times Well, late it It quarter of tight, we fall going off

think opposed lead stable just attention up with move with to it band, eye that that going prices, and we're close for times to to to the range four, in what's I pay hot-rolled deliveries be But just system. quite what pretty problems see And We're of five-week manageable. prices. to in we'll make upward like are we're But and sure through general of that favor and now we're is in we're to the It on steel now again, the things happens. on the where pressure are opposed have high a steel high that. probably steel that look volatility. not on right -- keeping bit and it things our think. pretty definitely which prices, So, there's see But not world those us again passing happens. little could a what And I on and things we volatility in bit causes going

Gus Richard

Very it. Thanks Got helpful. so much.

Scott Montross

Absolutely.

Operator

Scott queue. There for hand are in Montross closing no like I'd further to call to questions the over back the remarks.

Scott Montross

XXXX everybody both Record we pretty SPP for close our and into takeaways. our and And bodes for of Precast side. with as we again both couple call, you, Thank revenue to Okay. call thanks a backlog achieved wanted business and XXXX, well on the move out business today. key you before our joining leave I just margin the in

the product which more about that And acquisition we Park we'll of that way provide be integration into idea So, we kind of that the organic the doing about, into company. about and can very the Park the go are and business us growth very we're it's excited the getting future all spread, we're we've and it as is that pleased for things with talked talking the of progressing the way there. the

you solid on the and quarter forward thank good and momentum about that to first we've attention today, soon some XXXX. time for with May. look again think your excited like pretty I got I'd call everybody really we going very all So in to and speaking stuff into

thank So, you.

Operator

Thank this your teleconference. Ladies for and conclude gentlemen, does today's you participation.

You time, wonderful a and may lines at disconnect day. your this have

Northwest Pipe (NWPX) 16 Mar 222021 Q4 Earnings call transcript