- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to Williams Industrial Third Quarter 2022 Financial Results Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Witty, Investor Relations Advisor. Thank you.

begin. may You

Chris Witty

and good their Quarter and today Welcome the call Tracy Lay, to Tracy President questions. Vassall, Thank CFO. for remarks, and Call. morning, we'll With Third After EVP Randy CEO; Conference President Damien call and me Williams Damien Pagliara, Vice provide you, and and everyone. COO; prepared on are the the open

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

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

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

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

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

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

Tracy Pagliara

of revenue from was slightly third morning, period. Williams up down good everyone. and $XX.X Chris, from million, QX posted quarter comparable Thanks, significantly year's was which last

we converting in to further revenue review challenges continued have in a face I'll to As moment, XXXX. pipeline

Our tied and X.X%. previously discussed I gross will guidance issues current end to costs our expenses the when into Florida and were reflecting margin and issues our the related expenses the during discuss to $X as fees outlook. Water quarter, Operating was these associated markets. quarter, this the our as of expanding matters adjusted the business Without near million included settled reviewing well such transmission for was with margin distribution gross expenses, professional legal quarter. which the call X.X%

venture In the $XX.X million income, sites million approximately at of addition, the over throughout costs is footprint. maintenance through This the during million million from the their $XXX other $XXX several approximately the long-standing that a settlements backlog revenue proceeds XXXX, $X.X notably wins, utility, fact to have received million various $XXX next $X.X QX's recent to approximately accordingly. Without variance EBITDA services large net than X would the EBITDA of reversed incentive At such we business a quarter, of the most reflects are of we of related the million, work providing stood period. and Adjusted extension up payments, This fact end modification joint which quarter, negative. $XXX roughly was worth the years. million. in that legal as be estimated for the counted company's with compensation, reducing reflecting X more southern at reflects year-over-year multiyear been

losses the outlook. business to It current results saying legal in be and impacted including nonrecurring several discuss Water and state growth the our Slide and costs award fees. the turning Florida continue by X. negatively additional environment, start-up that factors, to to Now without I'd business goes like of our slower-than-anticipated

about remain by as line we the top budgets prospects depressed of customer our congress large as of the capital delayed business. the strong funding, driven been our customers to support decisions, due While has for government reflecting long-term well for services, prioritization is bipartisan the infrastructure demand spending. for optimistic our There and

addition, In about in our wins reason strengthening future. backlog more us give be the recent positive to

improving now actively our and taking results. concurrently development, the hand reduce focus financial end operations We costs. while the dedicated continue and to Damien quarterly We profile. company's over to comments steadfastly at I'll profitability it of to discuss call, to have but on to streamline we'll business wins, measures growth remain more new the Damien?

Damien Vassall

morning, and the I'd to good in Thank you, detail. like financials review Tracy, everyone. greater

$XX.X X. X Tracy million than during offsetting approximately & Slide higher was revenue of as and the levels Vogtle X Sales $XX.X Revenue to fell the due nuclear mentioned, million to $XX.X more million decommissioning We posted across in lower quarter, markets. a year-over-year for other period. work of core for XXXX. our versus Turning revenue

has Given substantially that during certain will from believe improvement, fourth show we work our the delayed including earlier quarter been that line the in QX, top grew backlog year.

posted heading reflects operating certain our or or impact million ongoing shows of backlog, Florida demand revenue of profit the We Slide the lower pent The revenue in T&D along for utility priorities. announced XXXX government and our year. at are of previously margin based from trends optimistic a loss. $XXX,XXX third with company. the up mix X projects for on investments operating about gross quarter budget X.X% project We X.X% into versus last $X.X and growth

the been gross start-up margin these have X.X% Florida work, Excluding costs in our for quarter. the would

We improve along $X.X $X professional versus near last million reversed for $X.X quarter, year's of the were remain accordingly. we $X.X in term million pressure incentive compensation million year. that expense, reducing expect third expenses million comparable in to but litigation reflects fact The Operating quarter with and under the last XXXX. variance it reported margins fees,

lower streamline business. costs now I'll Tracy? be expenses going call us, the Tracy review of will turn operating a guidance and for forward. remarks. his we back XXXX opportunities cut additional closing With identified the And the litigation and to our have now to behind

Tracy Pagliara

Slide guidance Damien. forth that sets revised X issued yesterday. the we Thanks,

disappoints While again XX% guidance, the post to $XXX forecast impact reduce to to We this between and margins X.XX%. negatively reflects be million that for revenue. gross We challenges revenue it business to of $XXX continue our and between to million now near-term us year. this anticipate of SG&A to several X.X% expect XX.X% XXXX certainly

be impact year. settlements million, without to negative Our been this $X.X adjusted million would recent EBITDA forecast EBITDA including litigation from have is and between $X.X the which

environment, continue to projects results year reside our impacts the from business. biggest sluggish certain investment Florida the with our Aside award items the and T&D -- in impacting this

While contracts only over Water one, the continuing previously which should become that substantial former latter a legacy into poorly are that year XXXX. performing the be issue X majority bear completed With fruit remaining scheduled anticipated. in is than executing we Florida larger of to of has the which are projects, mind, on a strategic with focused time, this

addition is report in negative the to for aggressively Williams company's cash the quarter. in which flows our greater our developed and in capital address to business, management, detail Form reduce working improve outlined XX-Q In has costs third a plan

full clearly the has accepts performance XXXX responsibility back expectations team for on the Our company well been and getting management financial track. below

forward. Our profile to cuts margin implement going to to for meaningful ensure XXXX an is better cost and the near-term projected goal results finish much with enhanced year

headwinds your our trust have position significant We backlog open the that quarters. to nuclear for very look dampened your remain performance near need wins also We executing in and the in projects earning forward about line questions. that, in future. we stronger but With need again for to to on restoring of well markets We the for operator, past several confidence can the move some by company end opportunities growth XXXX. key bullish our

Operator

[Operator Instructions].

question from the first Company. Our Julio Sidoti line of Romero comes with &

Julio Romero

Water To to changed start additional over that last guess, regards months to Florida, X Florida has what's in led the business losses? on I the

Tracy Pagliara

Randy, you take to that? want

Randy Lay

was Sure. -- take things: talked of as series effective that in we to a that needs effective Fundamentally, project were management that the about accurate, past not I'll of it. not combination that as projects were be. X and estimates had it we

May, office are, manager every -- back And some -- back of size. a to couple. we you management recall, pretty are So projects cases, the exception us in in project some again, these April, the much led replaced as for of in that may in that

size go to changed point, understand last projects that significant mentioned this we're is, us those completed take better bulk to have the take And And what well as those be this We and successfully on. complete that to projects then it -- we back in in third all those estimates, those do we -- of significant of spending The are at over XXXX Tracy will have be projects of the to projects. a the good news going of that's completion. have ones reconfirm the bring to is, concentrating going year. what We those to it's complete what in would couple concerns reexamine that's will that quarter. the one as that

point really changes. the to management well most been that cost projects the it's significant have So finer putting on those as as a the complete replacing

Julio Romero

guess, as Okay. And good that grasp confidence color. it the the the now? what Florida about have I stands appreciate you you situation talk guys No, on maybe, a I gives

Randy Lay

completed place any to some work we first many think, steps put can high. I be projects, been meant we have No, that that those profitably. And in we bidding that's we've in have, do and in that, cases, foremost, risk ensure mitigation

the And so that's been part to that. mitigate strategy of

chips area the does on every biggest that require sit these sort control our burden that issues, the but -- projects there together to really both, we And that on. considerable working get components, X everything that -- had that: the that and thing accomplished, systems to doesn't undertake that probably same of sure done; in parts into to work making a, going are spend we of that it estimates. that of the legacy on of that it make we is is that need those get those and on. weight the that particularly still customers in doing sure has getting It poor Being the of electronic come and else second, the that with the for go b, the not been chain disrupted One, as that time it to things. biggest it Second, understood, extension transformers managing we're and so comes we're then supply-chain to of schedule Williams. down to done to so the cost operation that require have of the projects we've supply

been that we marketplace customers the things have And they so far, -- do. in the same our see

we're that in the those touch customers So add sorts third, probably, we probably as through are with X things. our it constant projects And larger is manage I'd without goes these major issues. maybe on those of saying,

Julio Romero

issue? the last collections on? eventually collecting Understood. the X Could outstanding release Can not press that The be that you balance? a trended Maybe able delays have balance might from day quarters. you receipts towards turning you -- cash think customers about, talk sheet. and is talk accounts sales up just of not just over about collect might the there kind that mentioned receivables in are the some timing you Or to you

Damien Vassall

No.

and timing. X did on delays We some project those that particular slip receivables. DSOs quarter, was up the collecting it's primarily of there was result see a where in during So our

we show strong balance in on -- as are far very collectible reflected being sheet. are that as to believe we allowance collect not As the also still receivables and the able and our

So receivable $XXX,XXX approximately a on number. million $XX of we've reserve got the

on don't collectability the much in receivables. we see our So risk

Julio Romero

Okay.

T&D what's did are third fourth the Can in Just last me start-up. maybe the embedded seeing, you're what's rate guide? the seeing, $X $X what the seeing million revenues talk about volumes? you're the in revenue X for you And you just revenues or of quarter under you the run on on is just T&D Just T&D quarter for million? embedded in volumes -- in for

Damien Vassall

Yes.

fourth approximately goes, the percentage as far be in as revenue the the the quarter. fourth same expect of quarter So we to

did to turn in that However, T&D we third the of specifically contracts, one see we on the quarter. profitability

So before. in we expect that to continue

Operator

[Operator Instructions].

question next comes Hills. from line Our of O'Neill the Theodore with Litchfield

Theodore O'Neill

could gas a agreement? of service -- for of you detail more on if master going what's the with for there's side up with wondering some Eversource or not and the additional whether them was on us natural on signing opportunity the couple And another I years business? give pipeline

Randy Lay

activities. X-year that's take performance, that. The with X been option Connecticut and our distribution The extension potential that's we let Yes, to of Massachusetts. states the Island on area the a MSA Eversource's we for financial of additional gas the what and -- me the new extend with into to looking what's extend in driving contiguous rates natural operation years. at extension we to signed a X-year granted that are -- Rhode have And coverage and an to in

is So that, increase and an brings with together in an but return. that with increase an also in it -- what increase in activity volume

So now, once moving direction along in we of it that well we to is expected aspect the moving go signed on particular that off the MSA. new along T&D it quite

And so certainly we'll there's as There territory. talk will that them. that there's about some expansion we upside additional our some and into upside of move upside. volume XXXX. come is There's to more some certainly And from

Theodore O'Neill

if was I any seeing wondering And inflationary Okay. in business? impacts you're the

Randy Lay

so. those that get components has in We're We're else be. and course, down escalate inflation has abated a inflationary The anybody for somewhat, what issue. certainly, Lumber same depending sorts than are probably we've the of seeing products commodities. been need, to obvious, but right, the pressures the seen those -- area. continue costs cost tended we're seeing an who those the cement seen come to on to it's to less can buy Steel you but continue has are depending And it's you there it and of has certain issue escalate. on but certainly, if you steel some, diesel the and more then, -- consumables. Yes, global has it supply issue then have localized for where on cement. But

Operator

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

Tracy Pagliara

be participating quarter appreciate Williams again for forward and and better today. you. interest everyone, safe. Take next time care results. with Thank in We look to you, your Thank and talking

Operator

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

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

NOS4-1 (WLMSQ) 15 Nov 222022 Q3 Earnings call transcript