WLMS - Earnings call transcript Q4 2020

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Operator

Greetings. Welcome to Williams Industrial Services Group Fourth Quarter and Full Year 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. turn Advisor. over I'll with Chris time, Relations Investor this the to call Witty At may begin. you Chris, now

Chris Witty

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

issued this available were and a website Our www.wisgrp.com. is results fourth morning, slide presentation on at quarter company's the

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

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

will our You and XX-K www.sec.gov documents this be afternoon. can filed on website our later find these all at

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

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

Tracy Pagliara

good Thanks, Chris everyone. and morning,

his Chairman our remember formal of of part Chairman. a the those on “Mac” Macaluso, the I to Mac the want left on privilege our lives passed former to during lasting also imprint had away company XXnd, him. moment of the the Charles had with years take blessing Directors February a XX who earnings as and brief I who a Before work huge our call, begin XXXX. impact to of Board on He

miss its will time respects, $XXX.X achieve unusual due of our better - million, sites. we Mac million, job Unfortunately, but goals. and below year uncertainty. just as low challenges economic COVID-XX increase initiatives. financial We new execute XXXX pandemic start strategic and all in and advance various Williams' guidance year material win XX its an pending to Williams complete projects continue it new mission Full customers, work met X.X% to related the to to Nonetheless, The was to on rose to at end XXXX. an $XXX difficult revenue of made times, our versus to expectations,

non-recurring slightly of in full of in year to above improved gross reflecting margins performed $XX meeting However, EBITDA the This cash million. for XXXX. margin operating Adjusted full million EBITDA for and operational year. X.X% for in rose of XX% underscores this XXXX Adjusted year-over-year. $XX our million a year. rose end at the end expenses, target XX.X% expectations the for X.X% year versus high for came in versus X% We at $XX.X of mix. of success Also, expenses, revenue partners our last X.X% guidance, range XX% our business, to Randy and us the services for XXXX, of we're flow thank to the which actions detail. positioning well backlog quarter to restructuring our our good will non-recurring XX% million, from in dedication high XX.X% past And customers' We $XXX.X during to ahead. ended want a achieved also I of discuss was of SG&A year their our for a how proud range, X.X% and year fueled X.X% diligence environment. Adjusted balance generation, of we the also as employees the in with which the in solid our and just we more -

More year-end. importantly, expect at prior our orders million over we pipeline $XXX backlog potential $XXX have of and more to current least book in million high-probability to

the this resulting completed We've financial flexibility milestone. a also the our year, in and percent broader work in his in hard trading our Slide balance breakdown cost-plus of currently achieving which This credit company's New I'm by traded We XX% lower into always culmination work sales had contracts, shareholders of and the years a Exchange. $XXX few approximately snapshot We were and continue. and sticking safeguard the and serves a the of grateful reduced this to is welcome for strengthen is indebtedness, stronger step. to overhaul past company the today which American million X our for the and a to to uplisted important and holders put plan as new risk to last any project interest facilities this on sheet, long-term December platform More refinancing the cost-plus a limit increased all call York margins going Randy thank team of us the forward. of through our and overall of expense recently, significant able also efforts restructure for of Stock investors. now served owned base we with nearly be overruns. large revenue

it be but in $XXX through markets the end total growth which million, Development growth suffice X say, speaks revenue over Our it's X few Business to nuclear revenue is is than lower US XX% markets roughly and traction. much Slide increasing in to growth on work and revenue years Vogtle end development impressive million just in for right of of company's to projects. illustrates work continue between our markets success we The a our the significant sales review year. in our of the team, expanding by areas X we as time, continues and diversity. and expectations ago, shown gain new revenue end for moment, put guidance companies' strategy to including this markets. see more I'll escalating that and $XXX the a our We business February multiple XXXX expanding efforts will our

results Adjusted X. I of to has want X.X% period operations XXXX X.XX% between the to higher between XXXX items, showing relatively SG&A year been to $XX the even and of juxtaposed guidance. serve. which leading in the in are clearly EBITDA EBITDA year, expands, our of and transition last million increased The focus year-after-year. Slide adjusted for to million during continuing million. to improving jury We thank illustrates on as shown one-time in employees XXXX, of on X our versus company their shown are themes our the performance against graph this evolution end short Slide further we for $XX a in XXXX. of we all X playing various and at While business of shows containing meaningful demonstrably time. its Vogtle This last we work with kept on steadily of on in Slide has year improving anticipate we results has SG&A two X. the components was anticipate revenue in be made our again near here. or and $XX came our And the reduction top markets SG&A backlog reducing Adjusted sales. revenue. The and X.XX% There X the of related the out of check, in the progress cost,

presented further expansion Slide on these into by is reviewed penetration are areas excited as and Our we accelerating X. the opportunities

proud delays entering and quarter in certain of bookings in tentative largely the and related business a and reflecting including very than we're While came impacts, markets, progress developing environment. COVID-XX fourth lower anticipated, revenues made

book with However, normal and us, and loosening return in-person and X. are more nuclear, storage, pandemic our our decommissioning is - of greater initiatives presenting our delivery including energy end restrictions and now and greater much largest less markets, helped We're Many than the QX seeing XXXX Canada project to the target growth the upside. to fuel conditions. wastewater, nuclear meetings related US business delays, burn outlook work ratio of by of brighter, appears behind many water, more

a lifts boats, tide old not rising waiting we for all while However, still saying tide. goes, standing are the that

a of We going new are multitude industrial landscape. prospects and aggressively energy after the across

our our worth before new XXXX first I orders our wastewater over quarter, is $XXX - million Con company's with more pursuing high-probability line this Florida As contract in have over orders next. $XX positioned of State existing in largest new million well Bottom more some build over. book expect to pipeline or awards to We top million including and as relationships are $XXX line, and went to and of and the up the we're earlier, year meet ever mentioned racked in on currently anticipated nice potential well. the goals we Edison

and broader a the Uplisting of Stock us a and on balance successes a York Randy, it is organization base day on and years a refinancing Relations' York It for more me our entity after Investor to visibility was see company and to accomplishment to is vehicle. and provides our which growth-oriented on years, many review came level sheet. Williams XX, call underlying so great to investors accomplishments. up let herald American major the turning XXXX, Exchange recognizing the over for stronger New New company into that our restructuring served Stock recently, improvement to Exchange has Slide Before activities of lean higher Uplisting the after shown debt the our the the investment of its great last It build was today. that opened to year. graduating refocusing back

be evolving in-person number analysts Our further the in that to investor plan story. listed sell-side interest heightened and conferences, in either attracting this or events We year, virtually here. investors our expanded have of at interest the leverage including awareness

report with hope invitations for we comments forward. hand we've accomplished financial now being starting of from the past point of and detail. results where reaching years, at of events call. end our to to more these at everything a hear you quarterly we look to recognized I'll in and few Randy Randy? many a All out will confirmed at these more other the these forward discuss greater to and few make are investors. it going over But We're to now are Sidoti

Randy Lay

morning, and Thank you, everyone. Tracy good

of decommissioning of related work, Tracy Turning $X.X revenue offset $XX.X increase revenue million million XX, contracts the posted to as quarter Slide fell $X.X slightly a higher from million to and a Sales we reflecting year-over-year, for nuclear by composed Canadian as the to to - revenue X the we project. X to an Vogtle revenue of for $X.X $XXX.X in tied XXXX, and for XXXX nuclear year in million increase million compared posted million as X.X%. reduction $XXX.X of mentioned. Again,

of benefited from and improved or our lower revenue place XX.X% we versus our the last expense for year, gross the order $X.X the in business the other the company. million worked on take gross revenue trends highest Vogtle The Vogtle shows fourth essentially revenue product the million or on profit As posted of backlog. of mix successfully of backlog, of year. Slide business operating the XX.X% quarter - We the quarter is building base. XX period was same margin for $X.X making to in XXXX profit the company

XX%. of million quarter our We coming million the and decrease to year. $X.X Operating and non-recurring XXXX quarters report the the But our in with the between to continue - versus to solid XX% were expenses XXXX fact fourth approximately margins due included that quarter expenses. million the G&A lower $X.X last for $X.X overall guidance expect

rose to and range anticipate in to margin X% operating similar compensation. for last fiscal adjusted We operating stock-based for Our year. a margins XXXX X.X% from be severance

$XX in review term and change delayed $XX facility included close $XX lower million to a term refinancing facility facility rates. Slide quarter with the fourth a together leverage million at $XX during of our to XXXX. pleased substantially interest I'm revolving our loan million drawn with debt million of draw a Turning XX, The credit the a of dramatic consisting

course is noted, this to previously of reduce savings by expense right our last line. $X.X dropped and million in As XXXX bottom at expected to interest the versus least year, those

continue and million years cost to company's down forward. to generate we debt. structure by plenty pay million million cash flow in we to come. there's low losses in the addition, for lower over a used lien debt QX And sizable limiting five operating pay in the operating $XX.X that in the more tax With In tandem exposure, This of marks requirements, $XXX first debt cash to year. cash our full XXXX CapEx will used $X.X and to company our time net over flow going overall cash down and

is to strengthen review development. and while of remarks. the in we now call for a to investments our leverage over closing to goal as Our continue Tracy? business ratio turn our sheet, his further back reduce Tracy guidance XXXX I'll the balance funding

Tracy Pagliara

Thanks, Randy.

we to XX, our reiterate I which fiscal Xth. Slide announced XXXX, Turning wanted guidance to for February

range forecast revenue million $XXX to million in expect the to revenue. million. be of to to XX% to gross margins to be Adjusted and $XXX We million; of X.XX% SG&A to $XX be $XX is EBITDA XX% X.XX% of

a consistent customer-focused years. lightest As and a our reminder, reliable and is services with construction company. be quarter for XXXX will infrastructure the recognized first experienced prior as Williams maintenance

sectors, cash customers robust blue loss requirements forwards carry and enhanced with backlog receivable and flow energy collection limited losses, industrial good minimal and operating net and diversified exposure. a capital have chip warranty expenditure We large by in

municipality generates sheet dynamic on Our operating any strengthened will not plan restructured maintenance and require their have economic the improving that future Thus, adverse It to projects fully long-term are Williams balance finally a customers improvements we to during significant access pandemic that and a has cycles, utility believe and and business fund and also any greater is residual infrastructure strategic has completed the cash business. consequences downturns. from cheaper ongoing impacts a and earnings. to flow capital expansion. continue typically capital recessionary during organization Today, positive

stands Williams investors. a appreciation prospective shareholder other to results of to excited story for continue dedicated value we to shareholders and era dawn result, tell As new are the meaningful at of our and our a many and achieve

energized much open operator, whom Looking that given, forward, possibilities, to that With we and result is line grateful is can for those growth possibilities our to and our uniquely for steadfast remain realize we strong mindful much the expected. questions. in

Operator

the you. be Thank conducting question-and-answer session. Thank you. [Operator Instructions] We'll now

Our first Company. line & question Walthausen questions. Please your John Walthausen is of with coming proceed with from the

John Walthausen

Had quick in Good morning. - you that appreciate that. good pointed questions. a capital Yes, seeing to opportunity? Or couple was continuing pretty it's job working effort. improvement you talk payment gives that that about why contracts the what are dramatic pointed able Is been the that? a you out able I Can guys. One, modify quarter, you expect to to a because be term? the do favorable in you've we like of more

Tracy Pagliara

want take you that? to do Randy,

Randy Lay

I'd be to. Sure, happy

continued business I an continuing foundation was to worked that is, have that very And achieve its in it's our things. procurement and state operating vendors of of a team successful think a think our improved company's organization combination and of I our with basis, couple terms performance hard consonant negotiation. the on the as the as One we, performance improve, and we've ongoing were better much XXXX. vendor in a we has and with financial to and XXXX for

it, standpoint getting a worked just side major money know, our some of our to a days then on customers customers impact significant receivable with particularly larger that, from of part few we that you working big And a amount that's of our makes capital. on So ensure a squared away. with

we've worked So that.

know company expenses I the, away flow, were because that broadly, to you're earnings getting efficiency point clear down some of in you associated think you it which is what we cash with once is, to of the drop really today. the seeing the

you've CapEx tax going operating know you significant got standpoint, You losses from a minimal relatively cash have net speaking, forward.

to quarter continue long-term over into and look into will that expect translate we to should the we in translate de-lever. that what the taking the at and did so cash business as And

biggest the really that's of piece it. So

know being Vogtle and portion side. of on portion and side this the of both backlog result big very significant X also, a You could a a the X that drive AR AP the

the So also contributes as to get mix, a that our and into more we that backlog customer and moves to down diverse revenues total relative improvement.

John Walthausen

thank I follow-on Yeah, may, much. If very a question. you

expected quarter quarter-to-quarter back lightest is the the the expect go quarter we be the trend - heavy that year you are one. the first typical the - about You 'XX, typical year if to there comments more of you - which quarter ones pointed of to that do can or as second that be will that the you that particularly out is Is provide of

Randy Lay

Sure.

be, we year. significant most I think And know, you've the and of third probably to would second quarters got quarter that. the the expect essence second activity some involved in, maybe we the quarter, in quarters the that between of given would the the we're significant, that you of expect second

you as quarters. quarter light the will consistent up it's a as previous we to in and first being the that the substantial certainly quarter, again, it quarter we've be third years, think as ramp seen some well know, with second So extent I but

John Walthausen

Thank you much. Good. very

Randy Lay

welcome. You're

Operator

the Please Colliers. The Thank line you. next question from with your comes Ryan proceed of with questions. Dick

Dick Ryan

congratulations - activity up of a And and there bit if to of pretty that guys such little you talk turnaround state give I It's opening assuming the six maybe this impressive. orders? years. still on up kind couple projects pretty about Canada down on a of I'm Tracy, flows refurb up What's into and how for think you're things question $XXX Canada. Can there. outlook the are there. a the could in were last over say, seeing us And ask up? maybe potential dramatic Thank or closed a you of I to million Canada

Tracy Pagliara

quarter. bid There's a agreements from markets. bit see there but project Canada rest end last delayed the here that's year. that picking the maintenance opportunity second we are construction But slower good Sure. started Thanks, work We Dick. being were of it than our see professional off for year year little very type into the slow, finally we our us we also, that see some this Canada, services in with up

a the as us. for progresses, think we year robust So gets to be market Canada more

Dick Ryan

at, in When new over time, given some challenges with agreements. that you know, point maintaining or your either this look you does How look okay. you any LTA had restructuring? gaining Okay, the years, at

Tracy Pagliara

in Well, we've than long-term the a - definitely that's other Energy couple get added renewal contract we win years the circumstances have us. we've for in years Northwest of area we we target agreements those. optimistic haven't did, a been to a of nuclear be the we know, more position than are of LTA in but right business one or more now you any that renewal the ago, to new And in the space

You a know of put might about on for when pretty be, renewal. those date stamp I that certainly up our when contracts we keep can't feel come And we but track prospects. good

Dick Ryan

Okay. $XXX-ish new effort in wastewater million, QX infrastructure kind potential yet administration's at you driven by of of into guess the look infrastructure pretty any pipeline Has building. million impressive. that pipeline, the I yet? was the is of any the for that When new $XX flowing contract is that

Tracy Pagliara

Not with associated actually the, without so stimulus the, that's know, the far any just you with infrastructure.

you does. administration a the there's lot know, know, You what independent of of,

But think drinking apparently is grid have of there'll what opportunities water, even infrastructure. great be about we water announce be We there'll for we're to there. dollars going electrical if Biden the and billions greater nation's of today, reading President hundreds opportunities what

announced. So since not benefit business it's we expect today, from would our been but still not that, will yet

Dick Ryan

Okay.

Again, you. congratulations. great. Okay, Thank

Tracy Pagliara

you. Thank

Operator

your coming from Litchfield the O'Neill Theodore Please proceed question with question. next [Operator Research. of Instructions] with is line Our Hills

Theodore O'Neill

Hi.

driving question. in winning What's success Just a wastewater business? this your quick

Tracy Pagliara

We the Jacksonville, we - Last our improved dramatically, but the had safety have first have was of that incident that safety - couple never Florida a how office. including know performance did years our We charge new in many in leadership put ago I time of year in safety that and have I an safety. and years, it's recordable think not a months. first had office XX don't recordable we year a office

bid - extend customer's is which So when, of a and have footprint, customer have precedes our main outside one we us to Houston effort it's and primarily reputation we're just we the we to now in know and most new we work you continue in of JEA concerted Florida made now had in and our over wastewater X, work XXXX, recently bidding we for in now Houston. have rest for

Theodore O'Neill

you. Thank

Operator

you. callers Thank queue. be appear Thank in you. to further [Operator no Instructions] There the

call remarks. So back I'll for turn closing Mr. Pagliara his to the

Tracy Pagliara

care. forward meantime, Thank participating and everyone time you, you I safe for hope In good again Easter your enjoy appreciate interest and the talking next to Happy and well you. Take We Thank Williams today. in quarter. be continued look and and health.

Operator

today's concludes conference. This

this lines may time. You for participation. disconnect your Thank you your at

NOS4-1 (WLMSQ) 31 Mar 212020 Q4 Earnings call transcript