Comfort Systems USA (FIX) 27 Apr 182018 Q1 Earnings call transcript

Company Profile

Participants

Julie Shaeff	CAO and SVP
Brian Lane	CEO, President and Director
William George	CFO and EVP
Sean Eastman	KeyBanc Capital Markets
Adam Thalhimer	Thompson, Davis & Company, Inc.
Joseph Mondillo	Sidoti & Company
Brent Thielman	D.A. Davidson & Co.

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the Q1, 2018 Comfort Systems USA Earnings Conference Call. My name is Loren, and I'll be your operator for today. [Operator Instructions] I'd now like to turn the call over to Ms. Julie Shaeff, Chief Accounting Officer. Please proceed.

Julie Shaeff

Loren. Thanks, morning. Good Systems Comfort quarter call. earnings Welcome USA's to first

our we well press meaning on releases Our XXXX. the comments forward-looking the our as morning What of Act the include set be future of results activities this comments. expectations current contain plans expectations of Systems is forth as statements materially that uncertainties our Those USA. and Comfort Securities to different Litigation and say and those from will might today in and Private operations plans risks cause based of actual within

A a section listing as presentation factors well XX-K of remarks. our You Relations more can are will specific recent comfortsystemsusa.com. Form our and commentaries in risk our read on accompany our Form slide most the slides detailed Investor earnings. The the and press as concerning posted website releases XX-Q Company's in these covering

are Officer; open Chief President the on Lane, and Brian me remarks. our Officer. Executive Chief Financial call Joining George, Bill Brian today and will

Brian Lane

right. morning, first you, call. And earnings quarter welcome to our All and everyone. Julie, good Thank

thanking will the financial in start the by I'll more of with for and and fantastic all hard the me Comfort performance. start employees Systems highlights quarter the their come Let with continued Bill USA work detail. results

pleased first ever higher XXXX. solid over strongest of the execution Revenues to quarter revenue quarters. start on Building had the and performance. strong our than are report We first quarter are terrific last very XXXX. profits and first to a quarter We XX% several

by quarter companies. another operating have solid execution our We of

quarter, compared per earnings a As this to $X.XX year-ago. substantially, a share result, with improved of earnings $X.XX per share

exceeded is the new build with construction history, markets. of in backlog $X in our and first for billion. Our has sequentially, our higher activity backlog continues XX% many time strong to Backlog

Our a construction continue to strengthening trends indicate our prospects. of booking

dividend few detail that, let compared more to improved me will am get increase. discuss outlook financial a this our our shareholders service but of also We backlog Bill, this I to before our details the able prospects to in I Bill? in be call quarter, performance. for reward also optimistic year. minutes, turn over happy about to this to review the year. Our our Overall, and last results were I into

William George

Brian. as link, access Thanks, I you two Since of probably financial call and this our our most explanation details some maybe four through of helpful provide results. Internet through slides

there or revenue compared year first was First or April the million, $XX of acquisition XX%, XX%, in increase the an $XX coming quarter compared increased to by to million, revenue BCH Same-store from XXXX. XXXX. of was million remaining last $XXX increase quarter with

businesses is Our as due construction quarter. same-store for increased this primarily project activity growth activity to our

you of light the recall, As first quarter revenue will XXXX. have in we particularly

That of and that now profit change, results for clear to the has XX.X% XXXX, our per of of the first was XXXX and of per or of the and to of into higher. the $XX.X or is stage. XXXX. an earned quarter the benefit. that the as first tax revenue begins, somewhat first the was XXXX, Most have share, quarter of the with $X.XX one-time that income become revenue as deductions income tax the expense $X.XX million SG&A which XX.X% percentage first to tax XXXX. above benefited earnings was share due Pre-tax the as $X.XX current of without $XX XXXX Income was to I quarter still the an quarter an XX.X% first of $XX.X same new method, in the for after-tax $X.XX of compared as million a to XX% of item, XX.X% quarter, quarter was for income for was the We $X.XX XXXX. effective we're income accounting loss The of Separate in the this been discrete XXXX, very, XX.X% that million million estimate reporting, project change. or $X.XX was bookings acquisition. if tax method but that quarter quarter it was or primarily income was due first Net law, execution for first or XX.X% of compared the $X.XX However, compared profit unrecognized moving quarter rate compared a the percentage quarter, million, increase SG&A are $X.X for the $XX.X a the event tax historically would $X.X recent was million increases lower, to first tax million discrete for for effective that BCH prior benefits XXXX. rate compares share $X.X per XXXX. very Gross compared distinct tax federal XXXX, would XXXX. method XX% of of is low $XX Of expense tax the had for rate of tax decrease reported as in in an incremental quarter Gross a increase dollar $X.X $X.XX tax of of this the year accounting period earnings strong. million first from quarter million to some with XXXX. expense quarter mentioned from the quarter course in we first effective compared to rates of XX.X% to under we $X.XX from also discrete of of reform quarter. have the the by lower we from first offset

capital have cash benefit, early flow year free XX% very reflect in in especially we performance the growth. our a $X.X XXX,XXX rate our year to to Overall, We spread. we'll of of that of and million now. go-forward tax year. lot flow have I have negative cash with flow remainder in of for consider that's right increases about than and returned to moving our pleased XXXX improved and been dividends conditions will almost support very the cash as quarter results incremental Excluding cash the compared the of be results We for noted, just discrete continue our first more. are tax shares and the million year all quarter in we've increased this XX% for and XX% this optimistic quarter this considering our positive working $X.X approximately rate cash good usual levels our there feel We the and allocated the activity to the in repurchasing negative financial in Free capital our prospects we earlier really was always that pieces this to will would by Brian our good our dividend XXXX. shareholders believe

Brian Lane

am five going Thank of for covered right. will I minutes markets. These seven. through then our Bill. you, few spend to discussing activity comment sectors on and are All rest this the backlog on a prospects I year. slides various in and our

$X Backlog fourth XX% the for as first this the quarter XXXX billion, of of backlog the or exceeded trends XXXX. an presence. compared million services our demand continued $XXX the of increase a at to Our quarter quarter end underlying of improving

increase. Our on most $XXX by ago backlog increase XX% our year-over-year a has million, same-store to increased is basis, backlog is our companies. comparison is year a distributed even which of stronger. The a Compared over

sector the The We Institutional our commercial XX% up Please balance revenue in turn sectors. our government, for and good XXXX. mix. current of include XX%. our have end-user remaining and for a represented of to industrial revenue healthcare was seven our distribution various which slide markets, education and revenue made XX%

with is construction existing construction from the and buildings. construction projects XXXX, our XX% projects, buildings XX% total new For XX% from of revenue and

Our is construction the fundamentals benefiting trends and construction from business in non-residential market. good

next good We companies with continue book into to already. year some projects booking

investments We hourly service business. have our to providing our of of X% work, XX% continued providing make XX% service of service pure and Service is including revenue made with revenue projects revenue. and in

profits. of investment is in is and will the that continue It business service to we made, good quarter a we've well Our first both volume and doing XXXX make. and exceeded

are pricing prospects ongoing mid our to environment expect we company Finally, upper intend shareholders. execute invest have growth we for opportunities well-positioned and on improved our to full continue return is these We prospects currently that to believe strong growth single-digit We backlog our and revenue revenue in to feel the good. capital and year. outlook, for and our our full to

hard expanding With most our execution, and several of For their it backlog future. to realize their again employees strength been invest, work markets we capabilities now and questions. and have with I'll our to once our dedication. high, for begun potential. and with those our investing our Thank you business in in have all-time back are construction our Thank X,XXX for and good to about and you. we over to service years Lauren opportunities turn investments optimist

Operator

Instructions]. [Operator

Our first line from proceed. Please question of comes Tahira. the

Sean Eastman

and Brian Tahira. the Sean start on for Bell, is Hi, to your to year. Congratulations on this a great team

Brian Lane

Sean. Thanks,

Sean Eastman

a be the you we sounds bit some would were quarter perhaps than like normal. and bit for bookings work us, had from earlier XXXX, expected this a Firstly, than quite for stronger are it in locking

So, the I'm decide what's you about and out commit for driving pricing how wondering year? those thinking that you resources are as and to inflation

Brian Lane

documented the we've customers next they resources up the seen working and point, and to this and general went that at do end that. Sean, driving, capability section I you've people good via make question now they year Okay, well booking great talk and walk users the to seen I us want is what's as contractors about work sure the think or to year's XXXX think labor

us working So, to you've only commit good customers that. doing have and seen

somewhat pricing, recession a it's In is think pretty stable, for last pricing the terms improved of we over few years. and

we're feel we it's work, it's now, comfortable the that work a at, in looking wheel quite work it's we're work house. today, taking about good we So, our

the So, Bill of this year add work, rest the to so think year next do and far and have that. work good to anything you is I

William George

exactly that's right. No,

Sean Eastman

that? more side, gain they on if as working you to how seeing there sort become gained growth more it a difficult maintain I around a the growth then sounds side this quarter. and can really on wondering are rate had I'm like profile wondering has service know story it's are great And of share critical service just you and generally. you business great. if that been and mass, speak I'm the the That's there to has the

Brian Lane

The force. think a of way business. lot great It cost of is more time. steady a growth, business longer about a long that it state We service, the the a First helped business takes sales all, when we thing a is here service is stickier. it's

of strong some terms seeing growth we're still rates. in - we've growth had the So, rates that

that tax, improved this we've think a I place or work. tremendously in higher sales to is good capability

going we're that both - continue bringing And continue technicians. attract on to able to focus bring are and on we on So, to in training on customers. new

state So, you'll see service, we don't in and think think see. nice would huge is and what steady ever you'll our a see a goal what to in Sean, which is like I spike growth I

to of committed So, fully service we it. and are fans the huge business

Sean Eastman

lastly All work right, we be We also great. had for big then but then more little stage construction a this quarter, had Bill. And one for ramping me, up. service might a early some

part we of could margins How be bigger work some outs, So, this just progression close the about back on of the than year? toward margin and some I'm of gross as mix next be parts should latter end those a maybe we we and and move impact should kind how be how year wondering and lot the the thinking year? constructional so some of moving the building through

William George

XX.X% light we very was generally higher it is quarter. than the Last first but in revenue So, we we year, XX% quarter. a had experience feel

think starting. we well, So, XX% bunch bodes see is exceed is stratospheric for for year XX.X% of we're think that we happy there very reason which to no to historically we We the work us. think when wouldn't have a

think of As be And Although far mark. lot the XX% start to the we're see choppy, you now, I in beyond year, year, a So, of they'll pulling profit will that really a XX% big we as mean, leaps, that's the something, out, in not - close used outs when we're will the first question. we're way I not it perceptive it late as as getting far the were, through building progress

lot too early this to hope of of a at work but year just end lot by day, fourth of that, I finishing be think, there the wrong, is the the awful I'm an these for I quarter. whole be won't

will in So, bookings, as always on more I get, think close be the surge those. we get but in I we'll fourth the - next help outs new think as this quarter, far year,

Sean Eastman

response. very A really Thanks helpful gents. much

Brian Lane

Thanks.

Operator

comes Adam, Our of line please next proceed. question from the

Adam Thalhimer

a guys. good great quarter. Congrats on morning, Hey,

Brian Lane

Adam. Thanks

Adam Thalhimer

Hey single-digits conservatism, organic for might talked QX, in up growth about in how the year, the you top-line Brian, in there conservatism XX% full there of little that curious, is outlook? much a the be light mid-to-high just

Brian Lane

do you Bill? think, What

William George

the mid So, to you If right? math, seems be yeah. do pretty easy,

of here's obviously that because So, comparable we'll raise have a start the to to one quarter but towards we're thought quarter. double-digit, thing, that first is, to little is light we're comparable around slow comparing year, first quarter first still more that about single-digits high last just really revenue XX% and just given single-digits. guidance the part mid-to-high and giving We giving, it's the

Brian Lane

a think that's I probably, there's you you think probably number. single-digits I from that's Adam, I some think, if use but model conservatism model, good via high

Adam Thalhimer

just, as do more, M&A went about through didn't you you do, little understood. guys I talk bit then, Okay, environment? a the usually firstly can acquisition two an And you

William George

Yeah, so, in mean as right we do We ever biggest we summer, a people but I we've great, talked pipeline to our probably, the feel do time pipeline long last have say, been. very is for as - now we generally good is did year it's ever, good. close would we deals our a I acquisition don't that's

to as we're I'd think but doesn't about announcement. I generally make ever, mean So, optimistic say an that

Brian Lane

from to And citizens be Systems. Tampa. great net our be to Adam, terrific like with Comfort also great have on We and it's I'd joining recent standpoint, just just have financial folks one those been within to but in a us. have with good happy performer They couldn't jump company, the a

Adam Thalhimer

Brian then seeing maybe lastly us are And just little the in of bidding Okay. you walk you country can environment> bit, around terms what

Brian Lane

York, is if solid Madison, you unbelievably the to a year. and so very opportunities that an Okay, pretty note I and so the going folks this from just very quarter at got activity last good. of our night all first the but just it's look middle next way, We've strong, in New our good be still and had way [indiscernible] bunch upper to came terrific year broad, bidding

outstanding, our Mid-Atlantic, East, good is now Greensborough in bid that where the areas right, you and right activity the activity. with lot seen in of opportunities, Adam, South and the friends we've strong Mid-Atlantic, live around that very

[ph] talking than opportunities in is maybe good, years. very the Tampa as can next about specifically over do general you're few East Florida, South more if probably main

terrific good. Mexico. seen weeks markets couple and down a there there. just just Mississippi small in we're bid think up we've Eastern Arizona and there good, us, seeing lot was down, I and Seattle very out of business little good recession solid. service our I and very considerably New and is of bit, Arizona, very company opportunities So, project a good And a ago. markets very bit of up pretty but strong little has California for seeing we're up is very activity. from the Texas Denver, activity still solid. West maybe performance picked coming and bid

if that and the item, at happy of right with and So, very across country think look a can good discipline and execute that's I work type at you I to the work with price had that. it's make the what we now that activity is taken, do want we're you where the sure select key think

the about good probably I opportunities here. like I So, feeling since am out been have there

Adam Thalhimer

guys. Great to hear. Thanks,

Brian Lane

Thanks. right. All

Operator

comes Our from Please next proceed. question Joe. of the line

Joseph Mondillo

Good morning, guys.

Brian Lane

Joe. Hey,

Joseph Mondillo

construction inspection changed first in I it of looks the of to presentation lot. really like the sort every the the retrofit. And revenue wanted whole my breakout hasn't a to percentage you So, question put new as regarding ask of new slide

construction are has a why margins been gross of and piece piece bigger that's if new concerns am sort becoming year-over-year. becoming and of margins construction But Some I of new why gross reason not falling the is bigger are one revenue just the why a the wondering born?

William George

whole it was percent's fully was time. a a quarter. a give our existing a give not until of $X percent not say the XX, but say quarter, up was pick XX didn't on construction that out to and work, of time, heaviest March. but but give X% inconsequent. lot first is lot, just it to I'll billion a time. that obviously Right, comparing of we're year, construction I'd the It in X% just it project rounds the the number. And went

Brian Lane

Joe Like so. think sounds small, it we couple buildings, say this start - times some work in I a have still it like existing and it's work can you is, existing Bill of said bigger plus has with than know building sometimes project some a in this significant of

of I think that. the days early in

William George

is of a been lot say of the long on around you Comfort, us would people One and this have things time. call people like I for

things levels new when like But past build. you're it when new into our of that we've has in the a One of tend existing of business to work skewed time for out construction plans, done at robust - very of market kind you It's changed. that work back higher because industrial work all plans, were saw building a lot to think construction. of the is as we I heavier guys, revenue, that's times in right. to some we're the their they the our looks of only proportion those changed acquisitions have ground, headed since of that of straight proportion a they last is tend new don't that more the additions, they multiple plan construction They us towards and add but the in

Joseph Mondillo

break, that lot whole queues, projects your your based $X million Okay. like it $X of has those million, of - the so looks talk look one up, - kind one - that project? you like the million anything. breakout and margin per to And is the amount breakout hasn't of than next projects on less it the of of does there, revenue category sort that's in pricing. could of that in looks most the If sort are terms category projects margin a your but kind $X the you of pick about changed It what

Brian Lane

if a the by and us look Joe projects over by we're it increased main you so $X.XX probably five up But bit. XX% has at little for revenue, number

we a what East and thing take the talked we do about we've the what's being have other a job we're remain disciplined drop the who example on we mechanical of about few larger is try [indiscernible] I it to up as mentioned work for XX it Coast that On had very don't minutes The to ago a lot capability. our customer, disciplined is, so. work work is type where and on

be we falling not want execute really to and number that but are So we Bill believe to principles what you could that, bigger, we that to add? hold trying we are in our can do so for

William George

and that's margins it on million Yeah, go what as a lot $X as work if we and great margins of doesn't $X our between far we're hurt feelings get so doing. million

Brian Lane

that all-day do We'll long.

Joseph Mondillo

kinds type sort might you are the you sort or I'll and hospitals of if of seeing guess going to just to terms about could is projects of higher new it there any the in I backlog are back projects is work margin any different quarter, that outside orders any received talk retrofit the fluctuation know the in of projects consistent? first you whatever ask the in breakout in question. that type you even margin I which Okay. wondering it's seeing another between see or whether of been you of dynamic construction quarter fourth that

William George

big talking out upturn numbers a you're a close the you our reason the the of project not an is lot in while part I at and end so, winter. Joe projects over in seeing took Hey were look the

they replaced. So,

new the in a in pretty bookings we've while, So, project than be projects have can a so we few bigger had one big.

go we're whether we higher over the well as at pricing, far higher to done opportunity said stuff mean we've execute. - I getting pretty we margin feel. we seeing have that, margin so we're As got now But Brian

Brian Lane

what margins with thing It's one [indiscernible]. the it's

Joseph Mondillo

up until bad week of the Northwest, sort Also, in that anything the was the any historically ago or you two work weather Right. and did affected that or the first band Northeast think quarter? pretty in in - it even do

Brian Lane

the the January. because will, No, located But look particular, from weather. North [indiscernible] thanks to benefited saw don't in breakage, in about cold, you that having like East equipment. of we for more it really particularly a asking extreme particularly we where the our if lot that, service said talk over equipment you are business at We holidays

significantly very, in there already, up bad we very it. gets and through particularly so weather was, work had usually we of construction busy really able to our inside were was construction So, [indiscernible] the that by snow. hampered a work the that But we're lot building, we're we're

but, So, little whether down I business was we time you weather course, think More so was [indiscernible] construction it a considering had. there, bit, lose service and Joe. that you slows that it some with our bad in of good, helped hung that very the

Joseph Mondillo

this the usually months, the fact quarters? last amortization over been on a acquisition related that's just to we expense question made for pulling but of me, it usually past so going Bill, And when any then it next the all? the amortization full is amount have off with to good BCH I'm make expecting the XX you really acquisition this what of recurred, within look Are an and like winter, XX that with few falls wondering backlog, just to acquisition, you you Great.

William George

we you sort at amortization on amortization projecting the of a year, we million $XX.X that there's it's financials. by couple some we a million, not they're so, pull you for look we if segment, are to million publish were thousand, of actual I a that the year, look hadn't do forward don't on if say, amortization that, for still our announced. based XXXX this will of improvement, see, a ins, so, deal, future you we The in bucks once financial and know, something we're of was do obviously XXK out. immaterial companies $XX.X out in right hundreds is what that if number when even can to We we announce required of so, also tuck do XXK, some

So, high didn't mid in XXs, my coming the or out probably is anything do - see amortization guess. XXs, this if we should year the

So, hopefully, that helps you.

Joseph Mondillo

Okay.

a which first to So, to of gets see over so, X.X or you're quarter, run-rate bit that, the throughout expense you at in XX, you so, year, we come that at a may XX.X down the actually if if annualized little were XX you essentially, - making in.

William George

- go, Yeah, sinking every it reason deal materially or they for other do math. up, do have a the quarter a quarter with couple go come the is down categories, to it flat, won't amortize the lower crazy won't it quarter unless you except big before, pool, for amount we some second because is the than the

it's first. was So, nice By a you way from because you pay the get final a this still them for comes the improvement, amortizations they like penny, don't line. between -just much BCH these you still, it's of acquisitions and there's these built-in for down, quarter, and accretive course have slowly just them income upfront do because that net us

Joseph Mondillo

you. thank Okay,

William George

Thanks.

Operator

Our of next the please proceed. question from Brent, line comes

Brent Thielman

quarter again. great guys, Hey

William George

thanks. Brent, Hey

Brent Thielman

on big a a X.X make in thoughts the for that billion, operations Bill, now, you investments I to a book even in backlog or and having right up X.X to higher, equipment? have today, capacity tremendous, take it and people to would you've people the or ability it want or around do be the your I business get obviously place to guess

Brian Lane

that's so now, all question, a in good it's much number one as is lot shape. So, comment, right right. of we're than the good not And it actual is,

on percentage could bit little go more talk out, the that a summer that could year, next we spread could into that probably we take So, and it up not We a do this are, about, where in if numbers half XXXX, right numbers, so was it - time I leading the good works year. have now today. in we you would back have pretty be mentioned. we depending you doable of the it some year But could hit - over to

William George

And advantage take just let out. point to your question, me something

we're the frequently to most book the more trends of state, net time, subject time, book the in the winter to more winter, of most bullish much So, going the a quarter, and that we're steady we less. the are over burning in replacing it's then, market our so the number you bullish. because so, and you that's is summer even backlog are right, busy that And burning time revenue if in two quarters flat lower over a

last the year. And the those and million is are in about we So, thought remind to mean million $XXX after And this lumpy, increases. our billion. go I backlog want we say billion, just want quarter, above as, I think backlog, in might cyclicality gigantic a two we in didn't $XX we'd be our people a big this on increase quarter, of that. jump to was the of also, quarter a big fourth

So, and cash and don't and it, this we've the you so full it get the a got what - of to - that's cash you then matter you plan when there is from this we waste is what you news is get do. at good you that's bunch that's of it, get

Brent Thielman

like, like sounds sounds the I that business is mean it strong mean market both potentially I give reporting, the Okay. in am it of mean support right? hear enough I backlog, that to that, level I

Brian Lane

the it Brian. I came guys come that's but on know they and good. to yes, absolutely are say it I'll yes, going, But do some field Yes. you

William George

has the still tool Brian, belt.

Brian Lane

helped us? it and Yes,

Brent Thielman

about an just it's not of I but out the give of you to And follow-up talk to labor going yourself and and as some mean larger not fine. assuming just I of there. and just Are inflation work do - you cost staying, sure think out I still the want to and get XXXX, in some projects? after to I'm that terms you your these going thoughts make

William George

of steel to projects that's are have things little risk that many somebody. that we we our we areas of few we companies approve for our items steel buy take that few so of And parameters was that - to get that a and an ordinary There most to they I bunch the really I and the will piece very had like we their one a little customers, and risk risk to a on bit those. our pre-committed to almost commodity have had pre-bought, on say So, just look quote of go provide we is take you'd things the approval. outside in where of first no before and that. where quarter. equipment did of pricing a

is but doesn't I - think XX% at we're of if reality material in just goods by - of it's something millions. even it's thousands the not if our planning of percentage miss it's us, the or hundreds a hurt can or but we in it not it's cost steel you sold, X.X% look well for as the right, that,

we you themselves store to this headlines the way and it, are people, times risk to right over what wanted up go they our We when skilled and want of labor. and one So, saw by them to take be conversation thing. counts be on should guys either we every money we or also, feel need to the of the over and live price the know that's can you we have for risk take we us penny need a guess market many from inputs advantage to protected compensated people the not is you a to it and wanted for die to we we But good [indiscernible] our and make when as all of kind it and what understand contracts we've risk. the and right obviously not escalation pre-buy see clauses. And the guys say and because protect pay it's that that

in our this revenue all right. is first So,

Brent Thielman

deals follow-up question, strong. Maybe a looks the Yes, the understood. on growth know more mean core requires guys word, lack strength really for the you away to M&A core it are I great, the looks but look given walk of you I inclined - now and as better from right business? business organic just really overtime, of

William George

a be that get we we when conviction our And we'll fantastic when a So, to do We will think it return price give acquisitions we our other do buy for that not a fair partner companies. we a on we buy quota. have a shareholders. company, they

our we we've don't years over So, companies and two I will their to us a without deal, that there doesn't, as we I'm if at what don't when that partner, logical helps for about generally a a sell, are to of there proven destination half for that are that partners the keep continue U.S. doing. we're for to And us fantastic us, time into best it's sweat prospects but year, in we many good them really year business it the we - out to deals a year. and And and people. optimistic And going go bring them doing think it a the a exactly are say get buy I that's for really better.

Brent Thielman

to with high at growth this then sustain the least maybe you looks is results range year SG&A, here through And can tell to the $XX a and single-digits. the year million XQ breakout? million absolute willing basis, - quarterly one to on on Okay. are or on $XX that the Presumably that you basis mid like flat

William George

yeah, I we continue think the most the of Managers get of year amount kind as comparable April we be we'll think some the permits up bonuses, for, got outsource got to to be leverage have, Presidents, mean, a quarter, for invest, after owned you the go some million us XX-XX There's of little, will occurring year. that spent, hopefully saw everybody first money happening things, now in most there're X, big for on truthfully will the And BCH I from goes a to we've you but people we'll do the on, --, and quarters. that got to we're go from right? true in I dollar Project and your for who then SG&A, to of do revenues have get filings so have make I years, - build

Brian Lane

good it's money spend. to And

Brent Thielman

- Okay. broken cycle, jobs, could already of construction just pipeline and the many what on, you do, If of low how book I kind guys have and kind in you one by to, of later the ground? the time - sneak you that's back more the these projects

William George

people our why will XXXX, want mostly of a where me explaining there a two in year ago, there definition December And likely to a gives to they them, who go actually be everybody later, by people build but building now. they Because will who'll I'm reach ready of realize, building year be go. say of few you hey, backlog. not people in is point or So, a time, really, meet frankly. because and XXXX, the the the GC - building, GC all Maybe summer having not there to say,

Brian Lane

next pretty Yeah, I'd most of in say, to stuff the much go. yet hasn't - it's year got but,

William George

our Keep of its to an mind, we it number, can form been with broken meets customers already can't there up definition relationships ground get we the have yes. go, out for given definition and hey, In understood be time it to a great our finally underground, proceed, are in that to we some plans putting not of started. say by because notice there backlog, might some a backlog, and have us get contract have they've into they put just sometimes our that

almost have backlog, we put our and have actually frequently backlog, in construction - we before in our So, projects. something revenue on revenue, - significant

Brent Thielman

I it. time. your for you Thank appreciate

William George

right, thank All you.

Brian Lane

Thanks

Operator

like At I'd Lane, turn to the call to remarks. this Brian closing over point, for

Brian Lane

look have We're hope with everybody and all And Okay, row and our your Company. for year, the to interest of forward participating in continuing forward you for the momentum shortly, and in thank pleased rest weekend, in thank a to call year. start you. you great the We seeing we thank all the you. to our look today's

William George

Thanks.

Operator

Thank today's you Ladies and gentlemen, for conference. your participation. concludes that

a now great and may You disconnect have day.

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