GLDD - Earnings call transcript Q3 2017 | Great Lakes Dredge & Dock Corporation

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

Operator

Good morning ladies and gentlemen and welcome to the Q3, 2017, Great Lakes Dredge & Dock Corporation Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host Ms. Investor of Manager Sullivan, Relations. Abby Please begin.

Abby Sullivan

and call. conference morning our quarterly to Good welcome

Joining is on Mark this Officer, call will our me the on Then update. morning ending provide comments and Mark September Chief recent XXXX. business will an Lasse our our quarter Financial Lasse Officer, update Marinko. provide continuing on the Petterson; Executive Chief XX,

outlook will remainder of provide an for Lasse Finally, XXXX.

an Following opportunity there their be for will questions. comments,

Form our from understand and forward-looking During other in These our this actual expectations. are business you we subsequent to factors our call, and forth of in factors XXXX earnings and differ cause materially filings SEC, business. inherent XX-K in certain involve our uncertainties the statements release number filings. make could a results Certain risk statements with set to help will our including risks, that

the from EBITDA Lasse. our to adjusted During release, on which Investor are will the measures, operating this call and certain data. along turn our we Relations to in other including income call refer to that, financial reconciliation With with continuing posted attached operations, continuing non-GAAP operations, I'll net certain over to EBITDA earnings also website, explained from adjusted

Lasse Petterson

Thank Abby good you, morning. and

performance operate our we As results. in, extensive we have with analysis the goal business completed and recent communicated markets last a in improving an and operations of during updates, few company’s the the months our of current

by divisional a of upgrades from XX approximately retirement EBITDA assets, These old of of announced the and of fleets to have and cost productive reduction overhead of our We restructuring and combination most optimization and with G&A realized are be results the projects, our XXXX. and million, the plans the targeted end cost. corporate of fully units improvements of savings underutilized $XX a operational months to over by to XX months implemented next savings

and plan of restructuring million we recognized quarter to of initiated of this During the charge, XXXX, the all approximately third severance. implementation related $X

$XX the recognized third million that XXXX. expect between majority million will quarter $XX be quarter the and We and fourth of with full the restructuring charge in

assets corresponding recognized service still associated going projects be the in charges the finalizing are As will period. certain on into their XXXX,

$XX the communicated, million non-cash. will $XX between majority restructuring million of and As be these charges

infrastructure will environmental cost. east as hurricanes. Third and results operationally, executed quarter from and regions difficult was South our to the by & damage delayed the these projects, for work XXXX. multiple downs in and hurricanes the traveled has California south were sites quarter on our East good areas the they a we as be stand of a the the had of segment, impacted The only our or Harvey in the we Louisiana, been targeting work. particular for In as were the Irma in impacted number we this when progress in country. the up Florida we and new demobilized We South cost Mississippi by vessels work the in in In cost no however year; we sustained personnel and impacted are Maria delays and havoc injuries by major

next to $XXX the phase few million X million, phase have port both Charleston we projects awarded deepening an be been in expected options and announced of X As awarded months. $XX totaling additional with the

quarter. the project Boston Harbor for We this Deepening are bidding also on preparing

year’s the regained active strength, call, will into with ‘XX hurricane bid detail later from focus expected XXXX As the deepening market Mark in rebuilding projects of season. as work port as has on the well remainder for beach and the this

to well. be which slowly The XXXX, but with be than approximately is improve. the to XXXX market bid is $XXX in XXXX as the continuing expected higher expect to surely million high billion, $X.X international We market

We in options for fleet for work. Middle have will XXXX utilization our that East of further and with contracts in place the ensure

have the on of also focused During we been the dredge keenly quarter completion Ellis the Island. ATB

our the side work. the Tug portion delivery the the ATB. The ATB Coastal on possession noted she trials, reconvene is are commissioned involving scheduled mechanical Upon systems and the for barge Mississippi sail All operation. port will release ATB sea will trials morning, of Improvement ready and has delayed week. Mackie where issue this a gearbox completion As in she on we of this been however will take the to to sea begin successful Program, of

With We the will the I’ll completed. quarter. once over trials of date have a results Mark sea are assessment delivery to third discuss turn specific call updates, the those of better to

Mark Marinko

decrease profit is third dredging the and then Okay, compared decrease services the E&I to E&I decrease the project impact XX% of compared thank dredging Total Terra decline business, well of the XX.X% as the as third level. E&I the a during million for and related while discuss continuing $X.X mainly you the segment compared $XX.X $X.X decrease noticed earn XX% segment. of third quarter for results the revenues quarter in quarter. decrease income of XXXX will million, to company XX% benefit volume prior profit hurricanes, is recognized out an XX.X% G&A was result results the quarter, was profit, finally, the a in were third to quarter Total XXXX. of consolidated the to impacted in quarter the the income restricted million the with and Gross at the which well and business. loss is loss XX% as the the last $XXX.X the to third the quarter of XXXX. gross restructuring of quarter. actions the decrease in in from to margin operating prior in quarter from in or the year. severance to net the the lower And million The divested $X.X down in due combination $XX.X prior units consolidated in the start absence compared company a is core with was primarily $X.X Total of mix company as year. The the segment the a was of in the million million of stock revenue $X reversal in million, for gross year is from potential of revenue Net Lasse. revenue that million year, the related I quarter operations

higher the revenue net in year below margins foreign profit year offset same the restructuring the as also which $XX.X rivers segment to million level, that well not reach addition have $X.X Gross gross capital At with to overhead by and we lower the million decreased the million quarter year, last messaging year. lower with increased operating for direct do are our Consistent lakes during primarily cost impacting to the levels to $XX.X mix. the revenue. was operating current on from in operations capital, from prior in year, XX.X% dredging during $X.X In compared the by continuing the annual contract expense by $X.X interest costal and EBITDA quarter the higher quarter. million in and project Adjusted prior that was but the as caused associated is costs, period decrease prior the margin profit quarter in the segment's plant revenues expect we income, third seen margins offset are slightly to from XXXX. in and throughout by protection income were margin lower XX.X% driven Dredging's the maintenance the domestic improvement seeing quarter, G&A. a which million decreased lower year,

of E&I a by result on million. decreased compared to the core of XXXX business. decrease Terra business, work in remaining work lower the is and well in Our of segment's quarter as the the lost revenue prior The divestiture services the year delayed as $XX.X third revenue volume

third gross the E&I profit contract less as quarter, higher During significantly on to direct from margin costs. X.X% decreased the as well X.X% volume, segment

loss the loss the of operational $X.X services the year decrease reversal year to loss quarter. million. is quarter Please segment. from did stock $X.X million potential The this overall and and the quarter, the prior segment quarter. segment $X.X and the to an within business the in recognized operating included year-to-date by divested note that other during units. Terra segment offset The $X.X of a from the project lower the the million a third earn to was restricted G&A cost the decrease during related partially one expenses quarter Additionally prior reported impact out G&A related in credit and million cutting project. overhead credit $XX of million The plant related benefit The a

in remain Although that the segment operating position XXXX. year income an the loss expect will in full for year-over-year, it operating we improved has

XXXX were our revolver, expenditure the and balance expenditures in Ellis in we capital on Island. XX, million. $XX.X the in had leaving with quarter million $XXX $XX.X had sheet, Total $XX.X Turning for million We to had $X.X us capital with our at million the for million million drawn availability. September $XX cash for year

We remaining $XXX million Myrtle the months an include Charleston nine Beach year-to-date West XXXX million Mississippi The $XX during million X bid $XX year-to-date Coastal XXXX. project, the XX, quarter. payments September $XX million year expect market Hopper the fourth and the wins project. project, on to Coast million Notable of to totaled have compared $XX million for million $XX $XXX Improvements the Island the Ellis project

overall rate of year-to-year unusual XX% win include During awarded million company the in the indicative won win the average is for XXXX or year. not market. rate of the and does the nine bid variability Charleston quarter-to-quarter three-year and of wins with domestic not company our achieve not the XX% is next of from X. is rate the This from rate first Please the contract to in remember likely win months line dredging $XXX is

the XX, XX, in the Charleston of backlog XXXX. segment's first or or million. awarded; to over XXXX, December million I Lasse awarded XX% dredging XX% turn the capital XX% $XX of coastal $XXX at backlog Great or versus $XXX lakes his moving Again, $XXX $XX maintenance projects at During in E&I $XXX awarded. $XX $XX X Lakes The Contracted of $X.X XX% on million totaled million include does nine of outlook December September will XXXX awarded; to the contract. was forward. for and at compared back XX, at the projects million call million that, or million the projects projects million With won million awarded; and XXXX, backlog XX, months remarks backlog protection rivers this recently September not XXXX,

Lasse Petterson

E&I well as outlined the in in best will us in turning capital, of you, plan, XX that international position from see return months to begin of are we positively, contribute very to on to our that believe win as active debts, in will upcoming necessary domestic put we generating and a We for market, invested new expected XXXX restructuring months the recover next execution our have point look reinvestment our in Island delivery forward strategies starting With results reduce us to and Ellis and as the projects to Thank our we Mark. exciting enable this the to that markets improve planning XX a the and XXXX. fleet.

Abby Sullivan

that with for call the open questions. And we’ll

Operator

Instructions]. Thank you much. [Operator very

Your question of of line Andrew comes first DB. from Casella the

open. is line Your

Andrew Casella

out. there thanks questions. hurricanes? call quantify I there is the I impact mean guys, for any first, guess way the Hi potential a from to to is taking way the

days give that amount of progress should know the we how missing the XXXX? of as utilization about any of flowing and know the from into system the the you into way quarter also that’s You we think higher all just sense fourth revenue are to and through rates quarter a then or kind

Lasse Petterson

XX projects call impacted four So we delay different number impact in about had from related four hurricanes, of about we and and projects with that to that about of days. the days quantified margins. by what a the I’d we’ve quarter contract say those as a four were million to $X

But that, know profit get line gross weather impact the lot whether quarter. of the to A the thing quarters. shift you you above all could delays. that one back will future it’s know that to it for is prior, the You

of some into you have prorated We’ve now. weather estimate those know days So an the amount We future. taken we estimated of weather. the for that

additional of million. if the the do but would costs number the weather days you stay otherwise $X about weather same – long delay, the if back was would hurricane know below that days, from of that. because have lose as we assuming quarter we the is up, impact, have you impact the pick But some big you So we those we as you to

Andrew Casella

guys that’s XXXX. And cost benefits you ask the to in are to know helpful. then bit wanted Okay, that you get little I looking a about

talk ramp rate that progress of and If kind $XX about get that see into should full run could as of how you the we million. XXXX, we that by

Lasse Petterson

really G&A rationalization and buckets and Yeah, I’ll as call stated overhead improvements. some press it it’s we release, into the in so broken operational assets some three the costs,

that On profit is that’s the this line. obviously of first mentioned above of lot little a G&A, in severance as of in a most is the happened of that, is that that gross the bucket personnel overhead is we kind and and which bit

So this year. fourth year. million favorable this It’s impact that up the quarter you’ll ramp $X.X see about in

– be but some those have able forward, projects and will $XX to full into XXXX. items as about look would be in it’s finish half it going finish before we’ll come we we of recognize to about those they this million as other The XXXX, in the XXXX impacting as projects as and XXXX we realized as vessels savings the look said forward XXXX year are

Andrew Casella

is Okay, an helpful. is one, think additional netted should the inflow just charges cash about. or And that that’s then against that asset disposals, the restructuring we for

Lasse Petterson

related Yeah, the proceeds. calculate its vessels of net to the so when charge we

those of Some yes, yes…

Andrew Casella

then moving helpful. that’s And No, capital onto expenditures.

So sustaining about guys when $XX deal I the CapEx about kind the guess know you – million. number a on you million and brought kind I bond of call $XX of had you to talked of

payment, out your $XX.X the rating you run Ellis So well below quartered of a take at pull you if number know out and Island you that. the you know numbers million

like forward? that number’s actually sustaining about would the So call is high – too number how or you that timing we that out that in basis think going should

Lasse Petterson

do timing are this year ’XX, – Yes, it we in are years, year this year. we earlier had are some expect dock dry it’s so the yes, some but year, know projecting that related about these not lot So the things things is about when year high – right million next now a to for range dry this of year. Island, bit, that of to money have other years to it would this because this – year year and be we so about docks spending we this we are $XX below is some but had we and little next you dock we’ve below in talk dry a larger be million a Ellis year, related for estimating have on a the we we’re differed we’re $XX

Andrew Casella

Okay, little the me were that’s actually last that helpful. a the and below just question year-over-year for expecting back second stated have And to think then XXXX, know and half call guys of I’ll margins I comped get queue. guys be on that bit you final higher. in I you you

to mean there. additional do only number any can fourth but expecting be If color how year it marginally below know So think full kind lower on seems a the that. basis, you that we I there’s you’re like provide me still about to of quarter? I you��ll be

Lasse Petterson

Yeah, quarter forward. – you adjust right the be have we with I that to side. move job the we million hit as on – fourth have this take mean know this to expect quarter, to but E&I you similar did now for This to have out over you $X.X you

Andrew Casella

margins right. gross I’m drag number, sorry, down for the that will that this quarter

be add the your right then margin? that So back that saying and should

Lasse Petterson

Right.

Andrew Casella

I’ll Okay. the Alright in great, get thanks so queue. much. back

Lasse Petterson

Sure, thanks.

Operator

from next Klieve Instructions] Noble Market. the of [Operator line of Your question Ben Capital comes

Your line is open.

Ben Klieve

East, position leave to those the East Brazilian need want while that I the about one it you out couple could but close of this America. call Middle taking compass and for in ago here. have market differing what restructuring you wondering decision current like in What from my you the feel announced Lasse, that do abroad to operations. that the that see question maintain you and close plans was out to am market second, right I those morning. operations a Middle in made questions how now. about operations thanks South your your Alright, you you A

Lasse Petterson

It’s said and associated to cover cost East that situation being the a difficult for We’ve right but with the market markets going and has different. markets, of years when in with in the in we market. there slow so the us and been seen of we’ve forward at we and have overheads volume between capacity international forth number looked operate now. I a vessels. the good region, and of work different in, as domestically so saw that Brazilian quite is Yes, has believe time back the and Middle going that market we’ve been the Middle coming. U.S. The the that the that needed are markets with shifted our XX internationally market a for long both forward. we and We the markets been Brazil for us small is that knowledge very and for whole these we a we we large excellent East been in It’s

Ben Klieve

thank quick on then very question here warning. also And good, the you. Okay, the

XXXX? You expect year to as and next you market mean you ’XX that ’XX be that higher or you said year improvement that be beyond the well. than bid Did expect was XXXX higher an next you to in higher said than

Lasse Petterson

we is ongoing is of deepening consequence in Panama have see the a What deepening of we the general this as that that port program Canal.

ideally targeting and four these the we Lakes projects. for suited Great higher vessels programs very with fleet will it larger or as volumes next are and So our see and and go as trade diverse ports years we for are of the operations three these our

started of projects Miami ago couple deepened. a with years So these back being

Savannah. active now in are We

Jacksonville Charleston potentially forth. continues so We then the with also and this one Boston, and have

base the a good program very we of years. see our that company So next for being couple in

next if with thinking the we to So in market, you’re about say would I line year expect XXXX. be

Ben Klieve

helpful, actually looks And like me. it you. for that’s that okay very Alright, thank does it

You of my earlier answered questions couple before. a

So I’ll in thank you and call queue. for jump back taking my

Lasse Petterson

Thanks.

Operator

line question And your Investment [ph] of from [ph]. and comes next Michael the Clancy

line open. is Your

Unidentified Analyst

Good morning.

Mark Marinko

Good morning.

Unidentified Analyst

Yeah, can mature and be? bit you of know Ellis you provide the the it think just on was a issue Island what may you how little with color,

Lasse Petterson

touches out go you the sea vessel sea ports trials taking are are when are Well, and there have we on carried problems during experienced when you – week will and out. a recommence we closing the sea in days coming and some new there up end this of project and the repairs completed may been our gearbox is we these to be trials, when we days. are and In we up what side commissioning these final the as encountered we will with trials gearbox you and know into sea putting the go sites have can next this and issues know, trials

Unidentified Analyst

so yet? Okay, in will that other week or assuming be sure the or no trials sea completed you is are issues, not next so,

Lasse Petterson

announcement after the got of but and we barge we that, program in are to then sea the a next last of compared out delayed our that Unfortunately to the successful days to here we trial and our going announcement. go both project. gave testing the with Well, tug we’ve couple in and the do

Unidentified Analyst

Okay, you. thank

Operator

And line from your question Private of next comes a Investor. [inaudible], the

Your line is open.

Unidentified Analyst

little I and – our still of not were to quarter, more called E&I taking were projects. yet be loss out diligent what that that? nature this and was the know on the calling projects was you we loss on in out a Just trying

that? the nature was of what So

Mark Marinko

related soil as the design to as soil differing to wasn’t a design mix it’s in – really a and Yes, so to a we condition site conditions situation the two that issues in project had different with with differing conditions in properly. the its on working put well such those water and stabilization soil project; that mix

only So portfolio that’s at negotiating that to forward. have claims an E&I project a loss. I want for that’s a It’s be and we – going orders the do change

the other are or all estimate. The bid above at ones performing

So this reasons. that an it has is those issue job caused one for two

Unidentified Analyst

losses subject there recoveries and pursued? the then while any several with on prior had what we’re that is you were change years and and of period, orders being period this still project Okay,

Mark Marinko

No, not up this period, but claim. last we pick a did quarter earlier

forgetting was it off the I’m $X.X I of million. the number head. think my top

it in think in ’XX. million to was losses job Indiana I a that had related $X.X we

other that that’s So just maybe claim We major be we one so negotiating. the have now have. more, we’re or that yeah, this order but change a will E&I on the little have we only only big right

Unidentified Analyst

ones you’re settled Okay, you so off and pursuing no them. longer past

Okay.

Mark Marinko

That’s correct.

Unidentified Analyst

the Savannah, status In of what’s that?

Mark Marinko

in of So that XXXX. we’ll job finish March

that it’s three job job been; has year a right. know about You

we that have we’ll to have turtle So an for us. by be we XXXX, work with through, yeah, project excellent the windows done so March so

Unidentified Analyst

that that that’s of phases future be project? to there still end or Are that are bid the of

Mark Marinko

and actually more is mentioning, major up. have additional and was there We phases. deepening’s. in as Charleston about just even But that no coming Savannah Jacksonville, these obviously talked we Savannah phases port Boston Yeah, Charleston two Lasse won of then

is the a pretty of market. So XXXX bullish that’s we’re there lot work, why additional on

Unidentified Analyst

does the what port deepening My bid look market like? last question, XXXX

Mark Marinko

be big in Jacksonville would XXXX. the So one

Unidentified Analyst

Okay.

Mark Marinko

Oh Corpus been yeah, is been one the then press. It’s there recently well. as that’s Christi in discussed and

Unidentified Analyst

you. thank Okay,

Operator

your comes of next Jon of CJS Securities. Tanwanteng And line the from question

Your line open. is

Jon Tanwanteng

questions. you the Good Thank morning gentlemen. for taking

the release, previously or or increased press expected. million in The disclosed that outs you the push different new is in what first you one, $XX from

Mark Marinko

Say that Jon? what again,

Jon Tanwanteng

in pushed changed or The segment $XX million E&I said revenue new you out in release from that press of what is before? the the previously

Mark Marinko

coming out bid has or to to it did were we expect new postponed. things have something we want – No, been

win have in expect new They a those it’s really or differed we postponed. been something So been it items and have to either, has were the quarter.

that’s news. it’s the So new impact, really

Jon Tanwanteng

delays associated revenues. expect run the you full start generating issues the when And to for ATB Got it, with it thank actually you. there, the just do then mechanical and rate

after sea actually the the see phase it you if of after work have of know to and done first You as kind performed trials advertised.

Lasse Petterson

then after complete a it or are goes have run-in where and seen we is a the we sea in Improvement before have Well dredging starting period of on to have place. need that should we full the what kind run we are the or have units maybe we two to the and start, Coastal we that the production then trials the and Program said what once is we so in month Mississippi project

Jon Tanwanteng

color and the projects the up it more could, and you Boston bit Jacksonville on bid. coming Got if to just a

First, what do about bids you want relative talking one of like we here. feel chances the just the then are sizes the are and each that relative of are winning

Mark Marinko

Boston Yeah, - – on, relative its lot it’s million a clamshell so is of $XXX Its well you or size we’ve about work, a with which entire on stuff a lot ones big work is big cutters we’ve million hoppers. other know these range, $XXX know Boston. on and had back done you range

it’s nice of we piece equipment have. So

for it’s good And and about million of the project. it’s $XXX us we That’s then and a So for cutter on work. know million, is Jacksonville, $XXX hopper a market. opportunity one mix

Jon Tanwanteng

at are each you think or how and the competitive for chances we should those? relatively of good one feel landscape your Okay,

Lasse Petterson

the that projects said I available the have both executing for different at on versatile very of dredges the project. as very good major these that’s, think position, types project of us in Lakes fleet we is Great these puts a and I winning and combination the to us

Jon Tanwanteng

[audio as any gap] up in as it, got beyond What’s of next, others? terms that work Christi Savannah. that one additional and well comes be ports Okay, deep on Corpus you the that need mentioned to as

Lasse Petterson

additional up around as in expand a different it press is made There now, function don’t the clearly for core planning engineer’s out. budgets of Boston we ports funds it’s the this lot the ports. see coming I we, is we being with a sequence But additional to projects. have and available and But coming think that deepen ports and Yeah are of year. these

are are at Charleston. additional at year Next looking looking and work we phases then Savannah on of additional we

Corpus that major We are been works the there. of expansion Christi has announcing also looking at

and it three will continue good So at here it’s over a years. least next the market

Jon Tanwanteng

your that utilized are or only finally you seeing, disposed Mideast great. where of of part forward keeping a – the work after your Okay was on is to that XXX% fleet plan? that going And there of then is just restructuring be that going assets some that you’ve

Lasse Petterson

cover have those contracts XXXX we that for Yeah, units further. these take also that to have options we contracts on and

Jon Tanwanteng

great. Okay

be base So are asset in Middle as clear, your reducing the just well? to you East

Lasse Petterson

here to Due back we take the the U.S. are. considering is in the to utilized are remaining to take work East have. then unit the we that to up away the decided all and the one – unit one here U.S., Middle in contracts we that Yes, coming have fleet on

Jon Tanwanteng

Got helpful. Thank you. very it that’s

Operator

question from line of Andrew DB. And the Casella your next of comes

Your line is open.

Andrew Casella

talking the Hi, thanks for follow-up.

quick ones. Just two

we’ll I wins of just As we think win of one, about of – going your deepening forward? I we the how we should benefit mean two, the guess this contracts. three mean some port year typical duration these kind allocation work, as much of of in I about think what’s think how the is once you a project

Lasse Petterson

is and contracts and work. years these typically the there to can is deepening Charleston between two when three the we be executive going four projects years Well, that on in is and flexibility on

for of of a years. our couple utilization So base load good next fleet the it us gives very

Andrew Casella

a doesn’t on and through guys flow you these Mark perfect question will EBITDA. just look Okay, line quick benefit then are as items, restructuring back – adding like to them it you

right it? to understated as related So to forward the be basis think restructuring want about on sure is that to just way we going the the charges you guys EBITDA make I and I take think programs, is a to go headline

Mark Marinko

Yes.

Andrew Casella

much Okay, guys. thanks so

Operator

line Management. question next from of Capital the of your Kurt comes Liberty Probe And Park

Your line is open.

Kurt Probe

beach Hey from hurricane it? rebuild port everyone. versus I was to just improved wondering, the how due much impact of is the deepening of the the

Lasse Petterson

bid the market? you – in improving mean The

Kurt Probe

the Yeah, hurricane? of in the the result from bid market, beach how much is rebuild

Lasse Petterson

we to in market assess now really right army really are They are have that be bid We the deepening months. do you it. large. But time we opportunity. a opportunities to as as number talk some But we know move don’t about they we don’t because on forward. an believe there mostly been the the think don’t have we we of projects any these do to expectation we as talking, for and so Yeah core that about still know, will have of have talking that, takes

Kurt Probe

thanks. Okay,

Operator

at are turn I’ll this the over further questions There no time. to call Abby back Sullivan.

Abby Sullivan

We we this earnings during appreciate partners us forward you. you discussion and support joining our in We our shareholders, our next and of initiatives business developments with Thank in to discussion you for about in the the speaking business. important thank and employees February. look

Operator

for May this all and disconnect. concludes gentlemen, you. Thank you you today’s your wonderful conference. and day. a Thank Ladies participation have

Great Lakes Dredge & Dock (GLDD) 7 Nov 172017 Q3 Earnings call transcript