Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Williams Industrial Services Group First Quarter 2023 Financial Results Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Chris Witty, Investor Relations. Please go ahead, Chris.

Chris Witty

morning, good and you, everyone. Thank Williams Welcome conference quarter to the call. first

Vice are on and President Vassall, we'll After open the prepared me for provide Tracy and COO; and Damien Tracy line Damien the EVP With remarks, Lay, today Pagliara, their CFO. Randy and and questions. call President CEO;

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

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

statements conference All included historical of forward-looking are statements statements. facts other call in than this

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

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

You these can 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 performance. we company's the measures.

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

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

Tracy Pagliara

morning, Thanks, Chris, good everyone. and

of comparable benefited million revenue last which quarter will $XX.X in The completed all outage-related of from company first period. with QX. project in compared work, nuclear posted be Williams $XXX.X million certain year's

the first lost pressure reflecting in quarter. Florida chemical and was which gross for we quarter, margin the for $X.X from operations, Our ongoing our X.X% million T&D water,

Excluding these [XX.XX%] exiting, are gross underperforming margin our areas, adjusted which we was (ph).

in were XXXX. $X.X expenses million versus $X.X Operating million this quarter

for year. of Williams million adjusted quarter versus EBITDA $X.X achieved the $XXX,XXX last

operations adjusted million underperforming I to this XXXX. the Excluding mentioned, was pro $X EBITDA million quarter $X.X just in compared forma

roughly company's At the backlog at of quarter, million. the the stood $XXX end

work and the exiting non tandem While on cutting remain operations, strategic future. for on focused to we continuing underperforming costs assessing -- alternatives company's in

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

want the XXXX. first expectations While results than to were setting of quarter last we forthright remainder much for in better year, be

first from As to performed projects I the when mentioned the quarter a point, we work can a quarter. second nuclear during complete have during At in outage project periods, they moment these benefited which anticipate impact ago, we occur. this sizable

to combination is for nuclear Our environment complete, softer-than-anticipated of year backlog bid business. the backlog with has a a contracted this including many the associated that business, work outage-related exited fact our in core the due the factors, T&D nearly and

and government materialize. pieces a We our Jobs anticipated wherein several legislation, are such Act, Investment the including remains for award facing programs actual challenging tied federal sizable, even the than potential to Act, slower the as expected budgets due to of the have Reduction Infrastructure and Inflation been to for environment outlays business

operations markets. are business distribution we and on chemical obviously as scale the our we addition, bidding In water, transmission less back exit and and

robust of in the overall the the second Williams' year. half top-line outlook such, As for less is

include related continue operations. additional in time, Such costs same the contracts costs and operations we certain face to to exiting At funding. outstanding underperforming will our those finishing

everything company, doing streamline are need face associated and realities to possible the rapidly rightsizing We but restructuring to with the organization.

future. will remain mentioned, for the I issues just the Given challenges foreseeable all liquidity

is appreciated. this as to we through continue period our and meantime, shareholders' to patience the issues keep will the investors transition In work We our as informed of involved. adjustment

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

Damien Vassall

Thank you, morning, good everyone. and Tracy,

the in detail. financials review greater Let's

outages. That the to mentioned, and during was the million expected to our Turning much given revenue difficult customer $XXX.X parts exited of backlog nuclear of as be is said, lower quarter, a of our for year-over-year to posted Tracy due higher more primarily as we provided we versus forecast related the to have work, remainder XXXX. services $XX.X X, which revenue certain reduced business. environment, award at particularly Slide for levels Sales million rose of XXXX, in

project trends revenue, impact $X.X improved Slide for a as from company. We gross by This operations, profit and last performance the the million year. for operating offset quarter higher $X.X underperforming partially Tracy posted million X of first negative mix reflects discussed. shows versus the

XX.X% our levels half. projects, have been profitability persist underperforming core to such markets quarter. the will are for impact second continue into gross margins within from Such would although the the operations our expected Excluding

$X.X the were $X.X for expenses million last Operating quarter year. versus million

We continue to forward. target going reduce to initiatives streamlined expenses

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

Operator

[Operator any be session. If questions closing comments. We'll turn at question-and-answer like or time, over back further Instructions] no management now you. to are a for Thank floor this conducting to I'd there the

Tracy Pagliara

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

Operator

webcast. and That conclude you. Thank does today's teleconference

We participation have You day. line today. and may at your disconnect you a wonderful thank your this for time,

NOS4-1 (WLMSQ) 18 May 232023 Q1 Earnings call transcript