WLMS - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to Williams Industrial Services Group Fourth Quarter and Full Year 2021 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] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Witty, Investor Relations. you. Thank

begin. may You

Chris Witty

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

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

-- Safe Harbor If the uncertainties in turn the I'll from Slide briefly and indicated include such are or of conference may X company's beliefs actual concerning performance cause represent presentation, This you statements of future company's involve our by statement. forward-looking call the events than now facts historical to to other be and this forward-looking statements included that call conference performance the materially that statements. review statements and implied risks expectations different All may statements.

forward-looking reflected call Important factors SEC. in Although the expectations with company's materially correct. the to been company cause such that have the assurance other give conference with as will disclosed believes reasonable, expectations expectations filed from prove such that this that in can no are as it results statements well differ to actual the the could are documents

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

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

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

Tracy Pagliara

ended we overall, and revenue first, how for to spoke lot I million, million XXXX. quarter discuss optimistic Williams has And the and in But everyone. rose fiscal year-over-year. about $XXX are last happened up landscape Thanks, million XXXX the since XXXX. from let fourth revenues we good A morning, posted XXXX. $XXX evolving team $XX.X me Chris of and and for outlook significantly

also for and year, million million quarter XX.X% the $X.X the gross XXXX for a We posted $X.X the for of and EBITDA Adjusted margin million in million quarter $XX.X for $XX.X operating of the quarter, XX.X% expenses and the total. for was for year.

In factors want guidance, subject that contract. Canadian business these Florida backlog be have delays they While but through to early nuclear three competitor. revised projects work XXXX, separately on we rather the regarding to to quarter, worth contract and at sites where are a a contract. operating reflect decommissioning the about And were then XXXX nuclear within been last our metrics not Canadian in renew our the including announced $XXX the company tail I approximately certain losses million key of transferred spoke

particular any of noted, business including year, does impact previously not the loss decommissioning materially As the XXXX.

year was began it addition, with We In margin not million nature. in $XXX backlog. the of high roughly

obviously leaves shape guidance still last solid it to While this in XXXX. meet lower is materially us for quarter, our than

structures we York in determine year. of to organization review in to numerous accelerate are this We people also to and XXXX, line values core our our uplifting top Exchange believe we goals. began had After American there opportunities the comprehensive and Stock place a advance grow backlog New meet and the right to whether the our our

the enhanced summary, In in company process performance rigor. and upgraded the opportunities our organization. and also the poised forward scale root systems going and causes the good business to is now losses over with operating strengthen our leadership Williams and to The organization to a operating and the November deliver and streamline behind and result has is new the future. focus extensive year, As address our contract addressed in reorganized team faced development of issues implementing we to in

Slide I'd like discuss X. little further. a outlook bit to Turning to the

As I $XXX just stood million. adjusted mentioned, our backlog at year-end approximately

top bidding on of However, in we're significant this additional currently backlog, work on pipeline. the

current things. To have the this investors Some is this, how to revenue as I off make two can wondered lower just we target. recently backlog when than our want guidance clarify

is a $XX future mentioned, First, such to significant had revenue XXXX, recognized be only as losses the that in years percent of impact about million. the decommissioning previously reported in small, the I backlog of

demand Second, the based none paths investments meaningful always within anticipated serve, us continue we to infrastructure are second greater actually XXXX it revenue. a remains have diversified growth the clients, opportunities. the other pursue including unusual won results nothing by higher-margin unbooked expand in We're the our and detail. XX-month we comments the have economy with overall There actually Damien we'll is quarterly multiple business opportunities financial total reputation but backlog amount our to is relationships our our excited in customer over to grow Act. discuss to and at that Williams investment there on ones to In year our being given future. very leverage more This, a period. now new to and Damien? for end experience planned the base. booked blue-chip business in penetrate lead industries and in I the we existing will services hand expanding portion bullish to and about our the infrastructure the words, revenue about horizon, of general of and along Jobs XXXX and with the on be and

Damien Vassall

everyone. good and Thank you, morning, Tracy

Let's review the detail. financials in greater

with revenue for an and of increase higher Turning to of loss projects, approximately segment end XXXX. nuclear of several levels particularly X the was than slightly X $XX.X numerous Plant the million QX. recent period, Vogtle decommissioning decommissioning work growth the year-over-year from rose We within of quarter, we Revenue maintenance. continue. during due nuclear Sales Slide posted X. Even Tracy to as mentioned, expect XX% the million less markets, across and over $XX.X to

margin mix million year overing which with announced our or in last discussed, Tracy project and ongoing company of company. along fixed XX.X% year. now gross reflects work, operating previously we're solid of plant X projects report $X.X forward. on West the posted global lower plant The for versus requirements of Vogtle profit backlog last of experienced revenue revenue impact X to several trends and the going As for cost gross the to million price margin the XX.X% which We shows offset Florida lower including Slide continuing quarter basis. diversify fourth or $X.X remains a

year margins forward, quarter primarily due to higher progresses. expect expenses Going million we for improve the as Operating will under but $X.X costs. pressure the were the versus SG&A million last $X.X to year increase remain with

X% last margin operating versus X.X% was year. Our

As overhead call to further closing for to always, and a we're review forward. of assessing remarks. Tracy guidance expenses areas now 'XX bottom turn our improved and the streamline going line back I'll results Tracy? his

Tracy Pagliara

margins impact between envision including in X million we project expect margin We $XXX Thanks, mix first forth changing of provided January. sets contracts, Damien. XX%, XXXX post guidance the million and between X $XXX and and gross of to the revenue Damien that and discussed. the XX.X% Slide

in our positioned every am certain and that with tumultuous the period. tested of we SG&A largely I sustain revenue, was investments, our systems, both in and our investments and clearly HR. costs, optimistic Williams with between EBITDA the contract announced Reflecting $XX.X and operating the be November better on company now to Without the associated future operational lid to X.XX% is persistence tight X.XX% The greater focus for some to a anticipate strategic and regarding losses X.XX% be adjusted success. Williams discipline DNA pursuing critical enterprise due structural to million all helped execution. those IT items, $XX management SG&A us a million. and forecast challenges made upgrading would ERP organization more keeping entire While during between X.XX%. but our for aforementioned is have plan, in recent changes growth-oriented

We people to succeed. the place the organization, with in areas our and to them. fortitude leadership the our key among constantly quest in are safety systems right Williams right the also yielding upgrade of has

for team, and our support we steadfast stand operator, My execute Williams stockholders to prepared XXXX in continue loyal us and phase into the future With open in grateful to the and the story. new next the belief questions. beyond. up we to who as growth remains move of systems line for are controls employees, we and can With forward his vision we that, our

Operator

with of session. and your a Thank [Operator Please at with you. conducting Litchfield time, line Theodore be Ladies comes Instructions] we from will Hills Research. this proceed question-and-answer Our first O'Neill question. question gentlemen, the

Theodore O'Neill

this you you're Thank wondering exiting two meaningful expect will the questions, to those going if much. savings was elsewhere? morning. any looking says I I redeployed very over Canadian or It the just be be you have assets market and K

Tracy Pagliara

operation. pretty much SG&A self-contained in was a There to business. U.S. wasn't of the related a It it lot

of had some there. So didn't just don't lot offices expect a we I we And savings. up --

of redeploying in people our essentially. So terms our assets assets or

have I So Damien, additional you that thoughts. may either. see don't

Damien Vassall

with agree Race. I that, No,

operating revenue. the minimal people there and primarily expenses We was generated which it have our

to nothing further So add.

Theodore O'Neill

Okay.

there? insight if eye The us about control other you into factory you digital wondering conversions was my and was thing opportunity to give caught you analog the the that some see talked that I could

Tracy Pagliara

significant for that. very opportunity a There's

example, work. piece is of that multiyear we in Southern of digitalization a For the and a know upgrade midst have we

are again. project know it's it. Southern So the excited we're It's about significant. pretty remember over we sit million-plus -- I of projects -- here don't but exact the amount very as $XXX those

Theodore O'Neill

very Thanks Okay. much.

Operator

Romero question Company. of with Julio your & proceed comes the from question. next Sidoti line Our Please with

Julio Romero

into if And that new opportunities specifically thinking over probability months? to highest the XX to the by dive could end about to next convert opportunities the maybe replenishing which how you're you ones little morning. market? awards Hey, a was are I backlog, good deeper revenue you talk mentioned, hoping about

Tracy Pagliara

the about Sure. We've focusing just have is We $XXX over, in markets. of to total evenly for business. weighted some pipeline the and our of we it's It's million. on got more pretty million. is XXXX, water split -- is pipeline opportunities pipeline than we our much Of end but it weighted is pipeline is $XX the half $XXX in have just 'XX, weighted the evenly million think going that, we in consider million rest the about unweighted be $XX for what is nuclear

chemical, opportunity do about chemical in million chemicals and $XX pretty year a water, be significant energy and have delivery be then would water same would the over Pulp as the of that energy delivery. the paper this we So although and

Julio Romero

bidding how helpful. T&D think projects the know are about the in about of don't couple Okay. that. of maybe quarters And if I and over that I some That's talked appreciate trends talk can I you you've going sector? that last

Tracy Pagliara

well. Electric. year TECO doing Eversource. at We're Florida, more looking work throughout crews adding [ph] are down We're with Trending we Tampa the as in

because we're started So beginning we the Eversource in of with XXXX. further along

we're to think of XX% to crews seeing with the with But at electric, and to having continue the Tampa crews information us getting better feedback I area about looking if growth a So in. and in by high XX for you've good XX%. are do got it's Florida five pipe We're crews very standing range with customer. margins very we're well midyear the

about it. excited pretty we're So

Julio Romero

on Okay. And then the last just is one me OpEx just spend. maybe for

OpEx in beyond you're maybe recurs reverting this 'XX in OpEx Just and think talk Do of maybe this You how year? see investments 'XX? year? HR. ERP critical you you mentioned doing kind beyond Or you spend normalized do that some see about in

Damien Vassall

Yes.

that, take me Let Tracy.

Tracy Pagliara

ahead. Go

Damien Vassall

As right. you're spend, far the as OpEx

into we've the fully So talked integration We and ERP. to our back some XXXX. specifically business, the expect about complete investments this in project with

-- the XXXX not expenditures that, those as see into with So those repeat. these would savings, would

Julio Romero

very much for it. questions. the Got Thanks taking

Operator

proceed [Operator line from of question. Please Ryan question Dick Our with next comes Instructions] your Colliers. the with

Dick Ryan

still Hey the current at of that elsewhere work, Tracy, of Is the a of discuss risk backlog fluidity million just looks the $XXX there the the chunk like decommissioning going you in Can reasoning and beyond well? there. wondering of fair customer, kind the also about you. Thank work is of decommissioning the XXX it of as it. partner

Tracy Pagliara

take second the doing first. I'll fuel the movements operating plant for one that still We're customer.

current our the risk time in So -- The we -- lost to risk orders. to business a the they're is more to decision that plants, get that at relates plants where customer based competitor. the disassembling -- no at we that's on -- made taking non-operating reason actually just the the believe to move a they're continue to plants, not have performance business

want employees the into the competitor a and business our former our to to One of -- move they work employees former -- the couple with went decided competitor. to that of to customer

as as about about say that's that. we can So much

Dick Ryan

Okay.

drag? long that Florida the be loss at contract, Looking there, a will the how

Tracy Pagliara

can Damien, you that? take

Damien Vassall

guidance. to That's gross generating have -- that our XX for do through us are because on margin those expect We reflected QX, points we're approximately QX. early those projects. our run been -- We in on costing gross simply revenue late projects that with X margin basis

So it be run in to but we year completed expect they this largely will through XXXX.

Dick Ryan

Okay, thank you.

Operator

question a [Operator from Instructions] do further proceed have Deysher with no with we -- your question. are There John Pinnacle. question Please

John Deysher

Good to XXXX. and be we Damian. like morning, have Tracy lot It sounds in hopeful for a

of the is of that Vogtle? much of backlog of revised couple questions. $XXX In a million, Just quick backlog how

Tracy Pagliara

have you that do Damien, handy?

Damien Vassall

needs to believe million there's that that Yes, about $XX $XX in I there million number. I believe there's XXXX, but verify to for specifically about I

John Deysher

I year-end million it year $XX ago. think, million was, about a $XX $XX million, the to at because

actually up? it's So going

Tracy Pagliara

picking Yes. to -- closer as finish the get starts We're up more picking to John, line. site up the work we're

We more several up picking the are months. more. actually We've work been picking up last

good in at we're So shape Vogtle.

John Deysher

Okay.

So million, it million $XX was you think? $XX to

Damien Vassall

Yes. range. $XX verify number it's million, the to but I'll in going million be to that $XX

John Deysher

you The debt. from debt And good by was reduce slide do one I was just able priorities think be to That's right. all how on news. the the Okay, now? curious might year a reducing you of deck much

Tracy Pagliara

Yes.

way at the it debt the or is So debt runs through I our FY runs December debt that, through situation obviously, 'XX. well, look --

be loan. those the levels cash As would earmarked generate debt term excess we cash our reduce on to flows, flows

sit priority want I a today, we to debt here those generate cash. So but say levels number percentage it for of us and a to is reduce specific excess don't as

John Deysher

the all craft personnel and anticipating corporate much at the up think that come we on contract Okay, both head has guess And right. And K how looked the -- is more the that? about wondering, or same business? it in like at count Or the question just losses section, that I given down the other I'm all still is because significantly, the you're level. was today should level

Tracy Pagliara

Yes.

to of So from think it -- way approximately head But down a it as is the as slightly. variable corporate relates office our is about headcount same count. it's perspective, craft you think the that our should actually, labor,

going craft back up bring as we've moving contracts, exited are down. head backlog. count Canadian to will So and come additional from the loss labor away It we the on market the go is decommissioning as

us. So that we If we for labor force carry the the not is work, do not have variable do labor.

John Deysher

was Okay. big versus at But of year back to the corporate, up I people mean, revenues XXX Why the jump that it the only slightly? XXX. the given end were

Tracy Pagliara

point entirely those Yes, just folks. you clarification. numbers Those of referencing aren't that corporate a referenced,

those revenue various who include is folks We overseeing in project ground have our correlation those sites job are numbers on actually gone management, up. -- the at these site projects. the as There some has

line generation. with headcount last in we're make expect to that will looking expected the increase our staff something would that's at You that sure we're but revenue

John Deysher

good right, All [ph]. Okay.

that me. think does Good it forward. for going luck I

Tracy Pagliara

John. Thanks,

Operator

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

Tracy Pagliara

million, question, earlier. projecting numbers So clarification and issue to crews man a third off quarter. I by Eversource third little million three just on want earlier $X a crews by my we're And bit for an the [ph] the TECO were for quarter $XX

again today. participating We appreciate be everyone Take and want Look for I talking interest you. and again quarter. thank well. So, care to just Thank time in Williams. to forward next your

Operator

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

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

NOS4-1 (WLMSQ) 17 Mar 222021 Q4 Earnings call transcript