WLMS - Earnings call transcript Q2 2020

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Operator

Greetings, and welcome to Williams Industrial Services Group Second Quarter 2020 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded. pleasure the my your over now Mr. host is to conference turn to It Relations Industrial for Investor Witty, Chris Williams Services Group. Thank you.

You begin. may

Chris Witty

and Pagliara, their we'll for and President CFO. Welcome prepared everyone. CEO; and conference remarks, on good Tracy Senior Williams and call questions. you, VP Lay, the Tracy quarter me call. call and to are open today After the Randy second With Thank the morning, Randy provide

is evening second the available results presentation issued a Our on yesterday website and www.wisgrp.com. quarter at Company's slide were

you in If statement. the I will turn Harbor Safe deck, to Slide X review the

During risks as as actual this earnings may cause risks during and These provided uncertainties as could what other from uncertainties, to forward-looking which and apply some with materially well release here session. slides, the other Q&A in events, results is statements statements factors today. as stated These well the SEC. well and with are the during call, we documents that the other to factors as to filed and formal differ subject as discussion, future make are

You can these our on or www.sec.gov. find documents at website all

financial During in also will call, some We discuss useful today's these believe are evaluating non-GAAP we performance. our measures.

now call note to about our operations Starting go continuing Please with comparable we not applicable, X, tables However, otherwise. results that have release slides. turn substitute isolation and or provided over Tracy. today for conversation this reconciliation the as GAAP unless accompany today's the consider you be When additional a should will non-GAAP a Pagliara. with the accordance the I'll that results Tracy of presentation information with ahead, measures and GAAP. in prepared of in noted Please Slide

Tracy Pagliara

revenue the of a middle Chris, an contracts. planned posted than pandemic, long-term maintenance and customers rose quarter across offsetting line modification the year, ongoing achieved of outage the report a I'm in number impact results. good and solid We with $XX.X with to last of million sales from second Thanks, Williams happy that in everyone. morning more utility

delayed we've have now XXX XX% and from to As SG&A X EBITDA some we're in $X.X expenses This by improvement. is XXXX. declined to is in rose activity XX% company last XXXX to strengthen also to from XXXX quarter, year-over-year operating reported for from with gross in $X in and taken margins X.X% levels in steps $X.X million the fell quarter X.X% with million our expenses and year-over-year of basis to We be $X.X increased we consistent QX. clear And Williams. XX.X% said and in is last seeing Florida that a XX% New recovered Quarter year. million. margin operating likely streamline the margins work also Adjusted later that points operating hold the million line confirmation York taken

the exactly and halfway to converted to Our total fuel the from work with through reflecting backlog to just the and million expect Notably, our will rose of current while one wanted fell new months. backlog revenue in backlog, by storage quarter of decommissioning XX% which XX awards, we XX%, over be XX% some regarding with challenges to where pending QX. we We're XXXX, approximately Nuclear projects in the awards. million pandemic has from as be Out bit conditions posed even decommissioning. of fuel to changed U.S. storage and of XX% delays $XXX most during new quite quarter, total rose our relates to $XXX a $XXX mix coming million

pandemic things moderately what as The be where many to protect to incidents and continues not by while employees not in COVID-XX have I stay much and improved and customers about only everything falling X. more quarter, regional the corporate ill. and our to people and brief and actually performance work There's with add staff shown me power a say continues versus precautions, part operate. update although deadlines. to we -- have we office appropriate in of doing not on where the impacted let regions regarding taking our when of on for vigilant onset project other reported Company's and remotely remain the the track COVID-XX our to had have Now, Much issues indicated we most had Slide last of

COVID-XX, example Vogtle being QX, where some delayed by while also the materially new York not project the other to and In country. project actually been levels X has greatly as have metropolitan rates New slowed infection have pick work general beginning work areas impacted with improved since of pandemic. Our in by Previously construction now the is good a the area new development and been customers lowest to up. fallen has business

results achieve our the make end previously the reaffirming issued I'll our period, the and greater expecting We're at rest to range. at of end with for professionalism use during we it however, to detail. promising focused the EBITDA continue optimistic additional However, But, want a cost existing now customers of opportunities of time. we'll to unusual as and us of to few as well more for currently their new the projected obviously some staff Randy. comments through the customers we our flexibility are I and resources on our adjusted this call. continued to award to over we We'll are remain get in our to this hand as containment guidance. customers financial comment year be work. efficient and discuss to pursuing dedication higher Randy their

Randy Lay

and Thank good you, Tracy, everyone. morning,

revenue largely the the rose from higher scheduled as of slightly well Turning of gains outage by $XX.X $X decommissioning work to as additional with and $X billion Vogtle Those timing of a one the year-over-year Canada. Slide on were sites Sales revenue we utility X, posted of million for customers. reflecting mentioned. our Tracy work of million continued quarter as offset

this million We and $XX million that QX. in to the our run per forecast it’s at about period same roughly to of $XX a work year, this quarter $XX nearly continue although million will Vogtle rate

we any due not material to COVID-XX. indicated, operations seeing Tracy As are to disruptions these

delays pleased continued our X for operating We We or our million projects. improved of benefited trends solidifies revenue, revenue periods product certain backlog Slide $X.X also startup we and on diversification expenses for and of for the from versus second XXXX $X.X some with of which growth than margin more of revenue and us profit quarter the profile. gross year. mix The are company. expense XX.X% positions believe posted million the quarter future XX.X% last well shows and gross long-term offsetting

our $X.X rose quarters year, coming and SG&A We X.X% last expect solid fell recording quarter million between fell Operating XX%. continue as XXXXs XXX from X.X% were comparable $X.X expenses second basis XX% XX% from XXXX in at points unchanged margins to XX% from last the year. guidance -- to versus million Operating the margins with for level.

be a we of to April, million SG&A, As the which remainder fiscal XXXX. reminder, million costs in of overhead of for we implemented and $X.X as QX similar to cuts additional anticipate $X.X related cost

opportunities refinance at a wanted But We're is I Tracy, at reduce to to interest yet and credit of very and for priority substantially we looking expenses sooner being on lines going or debt this considered rather mention until point information to to is our particular not timing the a get feel important be back when than later. type needs consummated completion. call the us our turning to that actively Williams Before forward.

expense our with As will the attractive only investors balance know bottom saving lower drop straight to the more line. strengthen but financing interest not sheet,

a the to tax obligations. initiative providing As a carry-forwards in an guidance company and his look forward near I'll of review XXXX back our Tracy over to turn also net $XXX remarks. loss million the update reminder, on operating reduce to the We future. has call closing Tracy. cash now payment in this for

Tracy Pagliara

Randy. Thanks,

Turning of we X we at and for now more to about end to the at XXXX, Slide we're reaffirming the future the are our first company's were peak when quarter. guidance reiterate, fiscal

be and $XXX in million Gross be We revenue. expect million Adjusted in XXXX, of far XX% million. to EBITDA The higher $XX already of the EBITDA to at of lightest of of has this expect to to X% X.X% EBITDA end our adjusted to currently range $XXX we company SG&A range. being the adjusted thus million, of with to between completed achieve generated forecast $XX revenue XX% revenue, be QX. and to margin quarter $X.X million to in

and company cash additional build continue facilities forward. ultimately The our going burden exploring to we're the pursue more expense Randy business unlock interest financial diversify maintaining for backlog that strict work, us our our time the Refinancing to working grow continue capital. shareholders, costs over actively reduce substantial and provide mentioned, flow flexibility can just value and as actively the sheet. discipline business credit to balance same our delever alternatives We use allowing to to and and our while

the forward our and continued in operations the are William’s to business remains taken and we We for streamline can company we've diversify we quarters progress our to questions. get this and With through on impact steps as performance, a positive look come. to XXXX. open outlook are positioned on well with having emerges Rob, that to line pandemic that, underlying stronger already confident a financial The significant the

Operator

with Instructions] question question. Thank Research. your Hills question-and-answer comes you. Please with Out Litchfield [Operator Theodore At this time, a we’ll from O'Neill be conducting session. first proceed

Theodore O'Neill

Okay.

Tracy Pagliara

Theodore. Hi,

Theodore O'Neill

Hi, thanks. Congratulations on good quarter. a

Tracy Pagliara

you. Thank

Randy Lay

you. Thank

Theodore O'Neill

approach there? do you rollout trying reactors. last on the to Williams you do that, of next other supporting So, province the opportunity you in I opportunity. you modular The Canadian in approach Alberta, reactors? joining engage for And how any of nuclear us with my that you was week province the each this -- some is work first terms generation small of to question generation modular wondering separately give of see next have small And color provinces if Nuclear three could in they're about announced

Tracy Pagliara

President that. I'm of to going the be Powers, also Go to Kelly. our respond ahead, engineer to happens nuclear let Power Division a Kelly who

Kelly Powers

very anywhere only the in each on province opportunities province good the Power Canada. we and province. in Bruce yes, expect first expand at question. this in generation the To to -- would that Theodore in Power work Tracy. you, Ontario before approach And time, to question the Ontario this time else Thank try at focus Canada, we're we of

foreseeable as With to that modular the United province. be one involved for with the small Williams well say if we believe been focusing that's get continuing forward construction construction of comes to on three in is licensed is both of in modular Ontario as just the they’ll small in small the reactors, reactors respect modular process. positioned two on reactors, yes, we're future, States to move of your years to involved the if and industry in that I'll companies and question fruition. in reactors be positioned last So number the to forward, Williams We're modular going would involved projects small small Canada anticipate

Theodore O'Neill

question for Thank you. the Randy, are And any you quick front? activity seeing M&A on

Randy Lay

is M&A as concerned. down generally as activity Williams far is

think seeing on horizon. not I we're that, that's the immediate something

Theodore O'Neill

much. very thanks Okay,

Tracy Pagliara

Thank you.

Operator

comes with question from your proceed question. next Ryan Our Dick Please [indiscernible]. with

Tracy Pagliara

Dick. Hi,

Unidentified Analyst

you're good QX. the in Obviously, of that Hey, kind projects million a had like where Congratulations new does on about the good for can of they and you us $XX morning, the recall, million how decommissioning rest Tracy, some that the win wins would of the I rest quarter be give in you $XXX profile a after was what performance. or the business for the bookings. that guys. color But, during -- margins talk if specific couple booking. look right some

Tracy Pagliara

them decommissioning Holtec, more with nuclear the known The not is of the business which partnership, get CDI continued margins but Holtec consistent direct are wins with our work, work decommissioning. We as only which we to when continue actually in the does SNC there.

project XX% the So in as work evolves. and the X% range they're to the somewhere of depending on

had also anyway TBA but this some with for storage We of customers substantial was fuel wins other quarter business. portion with it the decommissioning the

Unidentified Analyst

Okay.

occurred is tap outage that occur last that planned again? will -- on And to Okay. that year the

Tracy Pagliara

Yes.

Unidentified Analyst

year? In quarter next second the

Tracy Pagliara

it. Yes. We're for working on already the planning

Unidentified Analyst

that give you might can sense magnitude, us a of Order -- what

Tracy Pagliara

in be can range less, It’s to typically, $XX a that's $XX or good ballpark. it's million but pretty that typically million more

Unidentified Analyst

Okay.

out the backlog Okay. -- in to is read that there million anything always quarter of norm? down And in the some puts adjustments you looks have like anything year-over-year, $XX this takes and but

Tracy Pagliara

that our that's No, -- low of business fairly And forward. many certain. risk I one backlog our our of mean, is is goes elements the platform typically backlog

Some we've a in COVID-XX. of it bit more delays little just of this seen terms year, I because project think of

you that Although -- feel add Randy, going again, else back do there? up. to we're to we have like pick anything work

Randy Lay

it's of think cases, don't I back picking awards anything in is is think out some that but up I of impact delayed I terms No, But there work some the COVID think in norm. again.

Unidentified Analyst

sounds in like it And your is of business industrial Okay. Florida comeback? kind

Tracy Pagliara

Florida now anything in right add Industrial that and our extremely of you have our strong responsible Our is that? business water industrial and that Energy for you do on business is Matt to want Petrizzo business? President Matt,

Matt Petrizzo

think work right direction added you you that's in We're Florida. in I it cost some in, the that very, new that our sized I with -- customers, in said about very feel we and We've happy No, think headed good we've area. been done structure, the really that we're correct.

Tracy Pagliara

one business not And had in now and the JEA Matt's And were the up. for done we're top in top in terms activity is customer and our when very took over rate job that the that JEA And contractor third a the contractor second ‘XX, good we of work. quarters. early win picking definitely probably we is picked and up Matt so

Unidentified Analyst

Great you congratulations. to hear. and Thank

Tracy Pagliara

you. Thank

Operator

[Operator Instructions].

Our a [indiscernible], from comes proceed next Private your question with question. Philip Please Investor.

Unidentified Analyst

quarter. hi Yes, Congratulations good on guys. a

Tracy Pagliara

Thank you.

Unidentified Analyst

debt years. paying What your rate now the the the collective is for interest situation right of you is been debt? on which sort heavy over On penalty you're average

Randy Lay

out around ABL million fluctuates $X on on We've It's on million we're got plus average. XX% the million $XX.X term-loan is which $XX which about and the period-to-period.

Unidentified Analyst

looking you at or traditional -- lenders Are more

Randy Lay

We are. Yes, we are.

by in yes, generally, very times some difficult but may -- I more into couple do market the who a are steps, set. ultimately, headed. I traditional where that's and lenders think generally, that got We have market lending obviously we're time We to appropriately. certainly think a moving stuck the during judge the But, to yes, from of company there's I that's, think things is you we're

Unidentified Analyst

actually that high shape have be Well, you lean shouldn't interest and of on rates? seem extraordinarily sort you to in

Randy Lay

run. the Correct. Correct. on long Yes, I mean, the company

Unidentified Analyst

maybe Yes, of way come management's a ending your get lenders. have bit your are the who long and company little credit a a come being independent a of also and shareholders up long way some to

you are -- doing much volunteer think business doing banks? have much Canada, Canadian I you in at so so any since you're

Randy Lay

Canada on At cash its this point, we're funding own generation. primarily

that, look we -- are the as at We grow will we business. Canadian

to sense a bank. make it'll ultimately, think do with something I Canadian

Unidentified Analyst

Canadian your whole Canadian bank business? just and business, your not finance

Randy Lay

Well, No yes, yes. question. Yes. No question.

Unidentified Analyst

you really I an I -- wanted the for on rates by been and forward, a good choking luck -- understand see should just I Anyway, you keep interest but have don't be Anyways, to can and penalized. period, going

Tracy Pagliara

this think we Well, quarter will help that.

to So from underneath getting we're looking out forward it.

Unidentified Analyst

good Yes, But so luck that I help you. to could too.

Tracy Pagliara

Thank you.

Randy Lay

Thank you.

Operator

Please comes next from your with question. Our question [indiscernible]. proceed

Tracy Pagliara

Hi, Bill.

Unidentified Analyst

hydrogen. now in indication heard of of Hey, good in called is produce now I'm a And of hundreds lay-off and was and I've All a out industry is everyone produce power little lot that's to there out literally and morning. of solar, this are that Hey, among you the field, about talked billions electrolyzers seen maybe how in -- but being hydrogen And kind you customers wind here, is your right, that time Department whole anything the of that Energy or spending the gas? to left the spent billions economy. the just the by being doing? are to hydrogen in least have hydrogen this something future about there nuclear looking that at field and some

Tracy Pagliara

give it. We've think some read rest closer certainly this you I probably that. want about and of heard about you Kelly, to it do the to perspective?

Kelly Powers

the conceptual we it too still on on with have it's horizon. understand in Like it. our at where at radar them, that that's at -- positioned earlier participate, it to able modular anything -- think something not the question be terms in fruition, reactors, Tracy distant with on immediate customer conceptually, with not of the about that's small if in not it's reading to future. customers, not our a point for unlike time customers table and but this the said, it's We're in the comes we're I to this phase Yes, -- their seat our

Unidentified Analyst

puts part the the does on in One you EFG EFG, investing going thing whole sustainability boom it now. industry nuclear that is do it’s it the of for

are doesn't have says a were you you're before who footprint. people And now carbon company. sustainable bit that now So anti-nuclear carrying because a it are pro-nuclear, a

So anyway, everybody. it I for hope works out

Tracy Pagliara

All it. right. That's

Operator

further in are I'd there appears It for call to no questions remarks. Mr. this queue. the the time, At to turn back like over Pagliara closing

Tracy Pagliara

look Williams appreciate in forward we talking Thank thank time everyone your participating for you. next We to again and be care interest today. quarter. you, and Take well, and

Randy Lay

you. Thank

Operator

This concludes conference. today's

for lines participation. your we at disconnect may your time. this you And thank You

NOS4-1 (WLMSQ) 13 Aug 202020 Q2 Earnings call transcript