Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Williams Industrial Services Fourth Quarter 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please

now Chris Witty, would like go to to over conference the Investor turn ahead. I Relations Please Advisor.

Chris Witty

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

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

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

that reflected Although prove believes such have will are no assurance expectations can company in that expectations statements such to correct. been reasonable, the it forward-looking give

company's disclosed results actual differ factors could the with with that SEC. well Important cause other in call as materially expectations from as to conference the are this documents filed

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

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

of note have tables today's additional accordance reconciliation non-GAAP conversation otherwise. GAAP. unless GAAP about and a that for in continuing substitute will be consider our a with with the operations, not slides. noted as release in comparable this we results applicable, should information Please today accompany in measures you or that isolation results However, When prepared provided

go Pagliara. Starting to with ahead, the I'll Please now call X, Tracy Slide Tracy. turn over

Tracy Pagliara

last million compared year’s XX.X and good fourth quarter of revenue XX.X posted Chris, with Thanks, Williams in million comparable morning, everyone. period.

revenue while That encountered discussed, things decommissioning in as looking nuclear we are previously in review XXXX. with dealing lower XXXX and work, to said, I'll for minute. a also As pipeline converting delays better

margin costs million as expanding gross transmission Without in was to our this for in roughly quarter, as Operating and business adjusted X well last year. Florida XX.X%. with such reflecting the quarter, water tied distribution gross Our the issues our negative expenses expenses, margin was line with the were markets. associated

to stood At backlog X.X Williams million assets quarter company's closure Due the for lower at the adjusted Putting and from XXXX. the adjusted had roughly improved cutting the X the cost revenue non-core is XXXX EBITDA behind to benefit Williams and margin of million margins, of in activities, million. the end EBITDA of negative EBITDA growth. adjusted XXX us, starting of revenue loss quarter, and an versus

continue In strategic to I'll moment. assessing a addition, work on alternatives, we as in discuss more

Now I'd like a to X, outlook. color Slide regarding bit our turning and more operations to provide

customer be surpassed $XX and projects of our mentioned, just revenue with in performance than Major prior year overall revenue of million. proving February XXXX original I the financial of have better to comparison already the As quarter approximately expectations, terms through even period. is first improved year-over-year

revenues the approximately underperforming process are EBITDA X.X X.X chemical, water, we distribution and excluding million February gross which adjusted businesses, approximately million. profit our transmission, or was was our In addition, exiting, and in through of of our XX.X%

with more company focused reorienting into most enterprise a and to the higher transforming leaner, are better profitable from We aggressively bottom line markets and margins businesses, non-core results. the withdraw Williams target

further our our and improve At unlock strategic the same explore to for outlook time, value continues all company to shareholders. the operating options

we goals. are future our to have provide detailed specifics the lenders near-term of makes including diligently the the us liquidity we our working working process, the with While Greenhill, achieve also comfortable already interim, with necessary about that at we cannot to time, Williams. existing this ensure In

the With over to to that, financial results. I'll Damien? hand Damien quarterly call discuss our

Damien Vassall

Tracy, Thank you, good everyone. and morning,

detail. in the greater review financials Let's

Turning of the Sales as revenue the we to posted revenue million decommissioning mentioned, in work, million nuclear primarily versus approximately $XX.X year-over-year $XX.X quarter, million was XX.X X, fell for & X lower and to Slide XXXX. Vogtle for due while Tracy during X period.

we trends as and priorities backlog optimistic pipeline, in government solid XXXX. spending and potential remain Given well a as growth about demand

trends including for announced mix, from the versus a loss. loss investments gross operating X.X Slide performance Florida impact in a X T&D projects reflects year. posted gross and This of quarter million We million the of last the ongoing for previously operating shows profit project company. X.X the at

Florida our work, approximately for year such would been the quarter last versus margin adjusted costs operating and our the would XX.X% loss been and $XXX,XXX. have gross Excluding startup have XX.X%

year. million last near for X.X We projects versus expenses the of quarter Tracy we non-core expect margins million as completion certain as to Operating discussed. improve and businesses, X were exit

We reduce continue streamlining target going underlying results. improve to operating to forward expenses and initiatives

we that, can questions. line for operator, With open the

Operator

session. We [Operator the begin will now Instructions]. question-and-answer

comes Romero Sidoti go & today with Please from question first Our Co. Julio ahead.

Julio Romero

year-over-year words, for your you date grow speak March through year-over-year you to that Thanks. through X if the release, case 'XX? performance of first my about did talked Hi. point. still questions. XXXX. other March Good Can trending In was press compared revenue to quarter that Revenue On in today? morning. at the your just higher that's taking Thanks

Damien Vassall

Julio, one, question. that I'll take for Yes, the thanks Tracy.

months. the this The mentioned, QX in that first strong. coming March of of is So, results XXXX as Tracy two seen trend in indication mirrors the early year we've for

of last So saw a in be we QX will what from year year ago much perspective, it stronger comparison time. this volume from a to

Julio Romero

helpful. that. very appreciate I that's Okay,

maybe talk order to today? of how we to months as can stand the through year turning looking you the three been Just that's backlog, first trends and the here

Damien Vassall

We're orders come I'll so we're through seeing. what first to in quarter. decent Yes, point seeing the

convert to to some remains opportunities pipeline process of backlog. in Our those pipeline robust. the We're on executing

Julio Romero

and the company as maybe the sheet, the the And the great. it could talk balance about and delayed today of do draw you on stands availability to tap just how much downs? revolver touching Okay, on maybe liquidity today on you have if

Damien Vassall

I to numbers, as here won't today. the liquidity speak we precise sit

will say supportive the be the strong lenders through support. have are business relationship I supportive and liquidity they that continued remains of However, company. The of our to

Julio Romero

Very what good. year? look then give this if dollars more And purposes should for I one interest if you could could of squeeze expense like a modeling sense in, us GAAP

Damien Vassall

Yes, range $X so expecting to GAAP $X.X million to the for be we're in million 'XX. interest

Julio Romero

hop I’ll the much for back Thanks very in my Okay. queue. questions. taking

Damien Vassall

Thank you.

Operator

Please Deysher next comes The John go from Pinnacle. with ahead. question

John Deysher

over little we that when completely? could into the Florida Where Florida of spoke everyone. projects with the that? contracts in And would a we XXXX. for project unprofitable I indicated those Good you terms spill are the will unprofitable my and more projects taking we Thanks detail last Starting morning, some be questions. books TD of the startups? water off the time off, get think

Tracy Pagliara

want you to Randy, that? take

Randy Lay

Sure.

And we So in part that water. off closely active of projects down just XX with have those, we will off be we drop project the XXXX as that drop some that first of expect as completion and that Of project. exception go the we active around, one relationships in projects QX. to five the into we QX by businesses wrap of will those final excluding Florida up for ongoing John, time expect are related pretty or we'd about exit in we

array. the that's So

completion we're of exception And good of the So the then we'll others number with substantial expecting half in first done balance of one. expect of of in a be the projects the XXXX. XXXX, to

John Deysher

the the delta have on that at business, TD investments in make the on TD to And going Okay. be complete are need or to point the what's business you XXXX? this

Randy Lay

in from had markets, the on the mentioned, focus decision businesses given as the to Tracy the the made -- transmission company. we were we we won’t So those that businesses, and withdraw core given distribution focus those that

wound recently In the So down, Tampa in the that days, Connecticut by past will business down Eversource so the in of be completed was TECO wound business end pretty here. April. been the several with has

businesses be specific there'll overhead number, as substantial as substantial, of investment expenses quote given a both but phase. will can't be any expenses. the there in gone a be obviously this So long startup I that will these startup were improvement as

in year those that a second against expenditures existed XXXX. pretty So pickup the the expect you'd half of in good

John Deysher

of all by down or will wound those March June year? be this by So

Randy Lay

down. End TECO April. of be shut clear, to -- was TECO be specific, to

as wound is substantially gone of half. business the the So the down by end be of first and that end quarter, Connecticut will of this the in

John Deysher

Okay, when will wound that be And good. down? chemicals,

Randy Lay

that are as now billing that of one projects final project speak. and completion have existing, We is in stages chemical pure the we final two

in the might obviously, a -- So that wound be be an down. half. I’d the I that ongoing we're And would be completed reducing will with the expenses of couple weeks, in our meantime, business. that then and have we others And and expect overhead in with associated next municipality that that expect project will second that'll

So I end be completed little by a and bit would we plus/minus that will of expect useful. QX, the

John Deysher

Okay.

complete. So by will QX, of be wind the the downs of end most

Randy Lay

Correct.

John Deysher

would once And down? those combined be what roughly are just Okay, might speaking, good. the say you wound delta

Randy Lay

lot I I wouldn't there certainly a to of want are take variables? a Well, at that crack -- Damien, know because -- do you

Damien Vassall

what there? John, businesses as those I cost be get understand just the so once far total as we the exiting question would of

John Deysher

gross losses businesses in what increase to income go have those by Once was going expect three you're I half. Well, to thinking losses you from those first away, roughly? would the

Damien Vassall

Yes.

first if would So to basis, pro think believe at any indication a be but gross there X.X we are I will improve income months upside by two the that. million, on forma least

John Deysher

X.X million year? per

Damien Vassall

Yes.

John Deysher

Okay. that. And to there's upside

and just I year. X in those complete? ballpark that on And supposed us helpful. data projects X is Vogtle have year could of are The you of March X remind & to this still this Vogtle in That's good. correct? Okay, Is December be X when Vogtle last

Tracy Pagliara

as November we're speak. roughly That's out it electricity actually X, Vogtle X to generating thinking Vogtle are a critical October, able where of them to path push. be correct. It’s we will that. they're do we

point. So really bound to at we're X this Vogtle

John Deysher

of Vogtle the Okay, this backlog Tracy? related at is point, good. And how much

Tracy Pagliara

me. check than Damien, It's less million. XX want that you to for

Damien Vassall

It's I'll Yes, take XX million. around look. a

John Deysher

million. XX

wind point? all good. reductions projects, significantly. one from me, have all reductions came than the unprofitable this down then the Have cost the the -- the of cost the to down Okay, at noticed headcount And reductions implemented cost I other all last

Tracy Pagliara

Yes.

John Deysher

Yes.

in news sounds luck. Okay. good store. it We there's like All good. good you right, wish Well,

Tracy Pagliara

you. Thank

Operator

time, this to questions there At queue. in no be the appears further

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

Tracy Pagliara

and your day. interest Williams and again participation appreciate care Take today. great and speaking your time for a you Thank in look forward have to We quarter. next

Operator

now presentation. The you Thank conference concluded. attending has for today's

now may disconnect. You

NOS4-1 (WLMSQ) 3 Apr 232022 Q4 Earnings call transcript