ORN - Earnings call transcript Q1 2018 | Orion Group Holdings, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to the Q1 2018 Orion Group Holdings Inc Earnings Conference Call. At this time, all participants are in listen-only mode. Later we’ll conduct a question-and-answer session and instructions will follow at that time [Operator Instructions].

As a reminder, this conference maybe recorded. to conference like host to now Mr. would turn over the your I Martin. Shane begin. Sir, you may

Shane Martin

Thank morning call Valerie. first you, Good quarter Group to XXXX Holdings' Orion earnings conference and everyone. webcast. And welcome

Executive Financial are Mark Executive Group and DeAlmeida, Joining me Officer and Stauffer, Chris Chief today and President Holdings' Orion President Chief Officer. Vice our

outlook. Chris XX update remarks, in prepared Regarding of call, the for and the results we Mark minutes will and format our our market have allocated about highlight which

open for call then will We the questions.

described the of annual this materially conference and undertake release developments of inclusive call, projections the tables are including things, definitions, morning. growth, result actual By Web earnings statements, expenditures. of XX-K, could please are on risk to can those an forward-looking future SEC, to predictions During and and call I indicator within pending gross EBITDA G. we of this that other markets, filings and and expenses like and These future as other for Securities including Commission, to Web our factors statements. additional statements our to or revise to new www.oriongroupholdingsinc.com. is administrative on be also are income, Executive that, the press negotiation update and a necessarily EBITDA over site. release obligation or and whether expectations, And EBITDA, cause profits, available Investors current awards, or end estimates net call, this assumptions among performance per margin, Chief well projections Regulation we that our GAAP found quarterly most regarding course refer President Mark and our this our subject that the capital materially information, and with which Mark? earnings will the risks comparable from backlog, gross accompanying that rules margin, those are share, to of our of past the forward-looking otherwise. from please to refer cause and and make statements Also, our projections providing note adjusted as non-GAAP may our press in The not uncertainty, results differ no results. to any Stauffer, adjusted revenues, measures the of results regarding, as Officer. at with turn site financial under issued actual margin discussion Also, reconciliation section differ measures would EBITDA Please Exchange reconciliations the Moreover,

Mark Stauffer

efforts I'd day Thank combined working with for towards joining our to strive pleased And our morning. this our for XXXX. start our thanks hard to Company. our their objectives. needs, to to It’s you, strategic our X,XXX like through work, safely meet dedication thank us coworkers commitment and I'm Shane. first every customers’ all we while

we quarter, execution had continued first drivers. the market strong During with solid

in Marine Concrete experienced segment production our impacted solid patterns execution. weather While our segment,

and we business, to see to over end continue improvements our XXXX. market continue drivers XXXX strong we expect Additionally, across see will

the operations forward, go market to on our share seeking in execute building specialty sectors, focused on these company premier while will we enhancing we As areas. customers be providing to continue our the strategy our of construction across and building industrial our to solutions and infrastructure,

greenfield efforts. for both look continue areas to opportunities these in and will through We M&A

our to to high-quality we previously Marine while made As services and to during segment provide continuing improve results, our operational our customers. solidify we within changes discussed, several XXXX

quarter improved improvement. are XXXX, bottom of and fourth helping line and As of we saw produce changes to solid leading the XXXX in performance first quarter operational to these the

customers’ our Within focusing segment and continue will services have and our Marine share segment, to continue market to committed Concrete be on our We to to and share Dallas-Fort focus market meet quality Concrete market, expansion opportunities. expanding needs. to our solid see growth Central Texas segment, unique Worth been services our be while we drivers providing in and on continued there Houston. in expect demand long-term for maintaining continues and We to believe

I’m Finally, today in the efforts our with pleased industrial.

set base, skill services our of leveraging While addressable we meet and customers’ provide our are expanding to needs. more to high-quality customer market our

opportunities progress with see pleased XXXX. and further are We sector throughout to this expect in

capital high focus our new As increasing businesses we’ve free to flow will capital. to stated we return on cash work with before, continue return to a deploy high invested on

infrastructure, and see demand across solid sectors. We drivers industrial expect to building continue the to

macro bid from of positive continue improved will on margin bid private storage. continues they prevailing conditions believe our sector with are The expansion. associated customers accordingly. waterways. see, Private positive of economic and favorable facilities the which market energy to our adjust we segment, we pricing. public remain opportunities to opportunities remain And hopeful waterside we U.S. Throughout recognize the sector, expand maintain and we and and for downstream as conditions expand Marine operating their Additionally, fundamentals markets refining pockets infrastructure facilities both seeing with conditions consists areas, and exist provide that

as In track bid to new the in refurbishment addition, or and of recreational demand with public remaining destinations continues private opportunities projects related cruise from promising, destinations to we lines grid. customers existing related

execute port vessels of sound fundamentals from remain are Finally, a demand opportunities our Marine expansion authorities, good traffic their and backlog. drivers, The generating handle increase demand and as they underlying with solid see to business we opportunities to plans bid flow. continue larger which

marine construction We will and to to provide continue leading be a premier company.

our sector, building of the consists to Turning Concrete which segment.

and facilities, we market but medical distribution services and continue a drivers Houston, to drive maintaining expansion. continue continues quality centers currently growth population on solid we retain centers, for The markets offers In well. reseller focused to Population their and positions demand have providing high multifamily serve our throughout business housing we experience long-term leading educational competitive grocery units, and facilities. new markets as as We expansion, continue growth to share. to facilities environment, are

addition continue of expanding opportunity. greenfield to focused continue We we talent which also projects and and in pursue work. foundation environments. Dallas-Fort In inside structural expansion In service are market, by are industrial will commercial all environment work Central offerings market the industrial continuing expect to to the of share other in the we live resources sector, continue markets, provide on long-term to and both and combining we pursuit segments Texas our our from and Worth in to land-based market Marine Concrete execute the the our

the for to significant potential our year driven additional and had a increased our We strong improving we we opportunity. a addressable are beginning of In opportunities to Coast pursuing efforts to improved opportunities closing, build massive business our solid first and strong opportunities infrastructure take backlog. efficiencies continue Gulf solid are project provide expand are acquisitions, along well-positioned bottom-line as of nice of we execution work this our to sector The work focus combination spending. believe in on economic in to extremely results. conditions fundamentals, and start to long-term execute and targeted we produce quarter The petrochemical advantage to

in our Concrete in maintaining in Marine the and We made markets enhancing our our and We our by focused seeking segments opportunities remain addressable across customers quality projects improvements segments to Central market we've expansion Texas to and of continued are continuing our industrial growth on profitable Dallas-Fort bid segment, focused delivering the services areas. the expand with pursuing sector. and Worth opportunities also on high operating in

solid our have plan fundamentals for We to continue and believe success. about the we execute excited are strategic future as we future

financial I in call results would to the more over the review Chris? detail. Now, like Chris to turn to

Chris DeAlmeida

Mark you, for and Thank joining thanks us.

quarter loss These compare loss of first we diluted per $X.X XXXX, a net share the ago. net period the million income $X.XX of a million For or or per earnings diluted to in reported year share. same results $X.X $X.XX

on our to to an the quarter settlement win legal in helps incurred certain loss of expenses certain operational we XXXX, the revenues that matter During and This settle impacted ability matter. first XXXX. projects recoup settled

would other earnings Contract Marine segment. per quarter the came results quarter XX% of $XXX.X breakeven for for first Concrete came share. $XX,XXX one-time approximately revenues diluted from segment XXXX and the been XX% gain, which of net Excluding from income or the our million, XXXX were have first our

generated XX% XX% of $XX% to of federal, quarter than was year. XXXX federal, state segment, the state first and private private local in revenue revenue XXXX XX% first XXXX This generated quarter agencies, the sector. government sector prior segment, from government quarter was from being from sector Marine agencies compares the local while to private first as XX% and Concrete and generated is XX% the generated Within the In of compared revenues from the more from

the mix mix concrete are contracts business. continue to the move we sector expect As and to revenues industrial by see of of higher private forward, driven pursuing overall a and our we we

quarter which quarter saving. first to the $XX.X than million $XX other to gross X.X%. due gross and gross slightly a million compares SG&A quarter the was or XX% of the compared XX.X%, anticipated revenues, or for expense which prior accrual is first was $XX year. XXXX bonus contract flat expense SG&A XXXX XXXX for quarter margin profit million First profit or to expense was of XXXX of costs margin gross first of better lower

to we we a forward, decline. move expense we and revenue this SG&A expense of leverage expect our from as As expect percent

percent of SG&A revenue For the full to year be expect XXXX, XX%. a around we as

continue to from to SG&A XX% below expect see mark. XXXX, leverage Beyond we the

XXXX XXXX X.X% EBITDA $X to quarter EBITDA quarter million margin. million XX.X% This was EBITDA EBITDA First margin. compares of first $XX.X or or

quarter which opportunities an ratio rate in $XXX and a million, first XXXX, on XX% one for time. under the resulted were just we bill worth to million book on quarter successful the of For $XXX bid and win

million $XXX first to low backlog low of In we or concrete have this and we additional opportunities. to XX, million currently subsequent segment $XX was the are to the segment $XX Concrete the while end worth $XXX of quarter, to bidder of of related we've related that, projects is the is been million As means which an while Of had to apparent $XXX was million awarded March related related XXXX, bid. of million million, Marine the the segment. backlog million we segment. $X total, $XXX Marine of between Moreover,

to sheet. turning Now balance the

approximately loan. credit. had access to million $XX outstanding, under $XX total the with and March cash $XX related XX, our ended revolver of of of to on million the million debt hand million related we term $X which to in was and of was the XXXX, As quarter revolving line We $X approximately million

and As believe we liquidity debt flows. on cash for than go our focus We we free servicing general continue our business debt requirements forward, position with to adequate excess will for paying more forward. is going down

covenants, with financial ratio the X are in including of compliance first below our at we leverage the required being quarter. end Additionally, the times

our support to activities. adequate than more is and solid bid remains program bonding our Finally,

are in we we we front As us of across of our have opportunities the look ahead, level pleased sectors. with business

several Our and we’ve strong healthy related total low million optimistic the opportunities bid the which over are bids we Currently, worth to we past remains segment activity million Marine have the to seeing Concrete been and $XXX of of $XXX the backlog month. million segment. outstanding, and are related are given bid $XXX

As Mark mentioned, XXXX. we’re pleased our start to with

affected our While weather execution. segment, concrete our solid segment Marine with patterns performed well

throughout continue on we focus improvements Concrete segment. opportunities maintaining in growth year, seeking our As business, in will Marine the our while we

call that, portion both Additionally, In operator continued we to I'll future improvement the we of With will over closing, Q&A on the the focus services in XXXX. about industrial on our forward call. begin water. excited the to turn seeing and to to look the off the and are back continue developing

Operator

you Instructions]. Thank [Operator

comes Duncan first of Inc. Matt Our from question Stephens

open. line Your is

Unidentified Analyst

you Seems is was. Can explain today. Will the for on tailwind. call and non-recurring what like touch Matt other It’s nature. on again probably that gain a the in big This

better So just to through flowing there? understand want what’s

Mark Stauffer

related year. non-recurring. operational Chris It our data settlement his as market and win projects certain a last in ability an matter remarks, to data of is to it’s that loss impacted But said legal

So recovery, the pursue certain incurred matter. expenses it’s matter. also It revenues to a a loss recoup we and favorable then helps that us that recovery in

very we’re pleased with that. So

had we respect with XXXX. are to think very where nice However, we the nice even start pleased with without we quarter, a that, year, to

Unidentified Analyst

I than we think expense was had that and expected. the others SG&A line better

And year. for to quarter? through are just a So expect, the what you leverage guess I you the year, go basis? should Chris, from were drivers the alluded we expecting? this behind that as But XX% expense we what quarterly what

Chris DeAlmeida

way. expense, company. accruals which So was overall again, have related quarter which clearly performance can bonus better do on the some directly to the fluctuate by this And performance cost we along the driven additional of is savings performance, the

full the between even and to I I XX% around quarters year for be remainder fairly As the it said, year. the expect be of for I to expect that the

Unidentified Analyst

out backlog do trying will your work to work? turning to And to competitors return start switching and quarters, move to above -- you there past the book threshold. that three think And gain one-time below figure on our in share lower margins over when bill that

Mark Stauffer

normal and there’s of running flow and bids. again ebb Well cycles the

As we’ve on see impacted me for seeing some talked Houston the on side. us. our of we win concrete the or calls, side, rate, in some excuse opportunities again, we overall, margin that’s about couple the of have, some competitive pressure But we like in front Concrete

’XX, focused come again markets not bullish within in at in and front the Houston a and of had concrete issue in large in that the share last all well. short-term much tail the we the the in think are on burn year. Last as of was year Houston XXXX, maintaining short-term, We we year half market long-term that adapting did end project Houston we’re backlog, in in of on

is are -- billion million got that’s we’re comp tough we of If side. on also we pleased in got almost concrete of the we where with outstanding, that. backlog that us we $XXX front look with of we’ve historically mean see So bids dollars of I there we've back the some that. opportunities a very bids and $X.X are with on outstanding, But that where

year And think look So that to upcoming front achieve are start bid we with backlog, got and our at us like we bids where to as pleased year. the the our in of are. we we’ve markets opportunities, outstanding, points, data this objectives of all again,

Unidentified Analyst

the me give And from your too Are or that gain expectations. thing point? the how last for early be still XXs, a thinking we it given we strong profit And low to on seen, Is this guidance. XXs what to that? start looking outlook revenue the EBITDA should we’ve at high excluding are about

Chris DeAlmeida

I’ll let up so guidance, revenue stay clear one. I’ll with do to that. don't We that you come

was On the yes, we to upper other we low feel the gain, had side, XXs QX. one-time through that in and EBITDA with comfortable the the one-time gain XXs

Operator

Thank you.

Klieve comes question next from NOBLE Markets. of Our Ben Capital

now line Your open. is

Ben Klieve

operation? can -- am that bit to transpired? will to settlement the concluding, I that there wondering anything operations. One a this the impact follow XXXX, to question your we legal this how how then up some with XXXX XXXX to And this here, how if on can understand impacted now elaborate trying XXXX Is compare given are we I'm event

Mark Stauffer

answer. and XXXX, it in would think Fair opportunities we question obviously. it’s not a it's difficult impact definitely occurred to of We occurred otherwise had in that in some some of would have XXXX. much would one it -- XXXX, of possible have that How impacted that have

to we’re execute time As opportunities, you going to try you work it likely in had impact as not as would had -- had year. know shown where settlement. what it. that pursue is or last the a this impacted Definitely, because when you is it work very operational quantify there delay obtain think and have And year. with that's book item, I Again, between think that it impact I’m work. pleased I an And again,

Ben Klieve

next light couple proposal And questions; come in come to passage one, other over fronts. opportunities budget, hurricane And or related market the months? ways status activity the about how the any few a past meaningful expect of the couple you work One, quarters? have over curious bid do to with to second, on here of of the two commercial a of

Mark Stauffer

survey book, work I think the the last some late year, playing and according from occurred as out playing late hurricanes opportunities have last work related did we are to particularly opportunities year that dredging to QX. Well the year again, last

we we’ll to that infrastructure tail which hopeful see There's are longer anticipate. forward. bit We opportunities continue what work, moving little for a of is

We that. opportunities to are tracking related

year. seen Engineers have some the that further We our go as modifications of burning of through Corps we start to projects will

and come of expecting year, activity will some that opportunities additional about again, with We be work throughout next that But that. years. other fiscal year that then expected. dredging the bidding are balance of us, as you last frankly, the think respect for about to to pleased the of funding directly that, the we'll we’re out shorter opportunities typically expecting it’ll to playing Engineers on. said, in Again, additive the see, see to provide But fixes term pursuing we we normally additional see the infrastructure related the And the to about are on. of particular Corps I with approved more pleased for would we we’re term, longer So be of and couple of some out opportunities survey and from we’re is and initially which in it’s hurricane as will seeing. work

Ben Klieve

that but segment. is a a with this on, is any I Another margins Or not of it assets at have investing what am the regards segment that at there any segment? that consider? couple negative anything we in that impact in work few development any Is done just awards With degree should point now its business here. drag or it’s couple on on efforts still would impact just -- given question either industrial margins physical are to this on you of a infancy point. quarters that wondering to being nominal from quarters

Mark Stauffer

think the so It’s It’s not a -- latter. drag. nominal, it’s I don’t

about a it is this that careful a such very way -- in does up being not We’re standing drag. it

as business. we add We adding folks are

-- we’re in it’s our not we have so segment. that of each utilizing and again that it’s particularly otherwise existing assets already And -- capital-intensive and/or business pursuing

involve; the at will all; we’re we set about that So not distraction. out again, some not the that stand again, -- of of to we careful that very and segments; and so make how pursue sure that drag being it’s additives existing again a this are a opportunities work skill

Ben Klieve

here. And then the I in marine final get for I and am question segment. will in queue curious one me, back

you you coming point given your any next in can in think to few to the geographies If attracted are larger you base? that quarters deepening awards of port and you. market the the here asset Thank uniquely

Mark Stauffer

lot of executing ongoing a already comments plans my years, long I phases said, this Well, today. several is authorities term in. out as of few port think remarks participated I in which multiple There are lot over has play been their made we’ve a -- work on we the the last The years. in

and East see expect that We deepening There ports continue it varies to port-to-port. that, significant from to have are underway. some Coast projects

We expect opportunities that see all with drivers, sense. along make the from and to most continue provide to we monitor market the other those other end that opportunities pursue those all the that

So we it we and whether as particular not, not a business. any positive project or Regardless of for a or view positive. win as it view we pursue thing our

those continue over going And one see nothing particular so again, are the get. opportunities. today say specifically think stretch to we really years. would hey we next to we And is, just this to in I to And several want those further there's is out that answer,

tracking stuff. We’re

providing bidding opportunities with It’s drivers. see We’re along market other stuff. opportunities from on all end our the other we

Operator

you. Thank

comes Tanwanteng Jon Our question CJS from next Securities. of

is open. line Your

Pete Lucas

Jon. Pete Lucas It’s from

but down business, in also mentioned on Dallas-Fort debt area. the overall a Just for concrete looking you Worth the growth paying priority, is

looking So grow where you fair organically you areas, acquisitions with and still happy are looking to there? to in say or are guys at those

Mark Stauffer

presents we great of in where think our hard a Dallas-Fort the of team take we obviously, it. organically. achieve market. we never, great with never happy objectives would up we objectives itself, at our got our And achieve can we We’ve all the a if that can course looking to look organically, opportunity right areas, team organically. say But are, a Worth Yes, believe go

Pete Lucas

with you give without the any the us growth staying the color And concrete would can on what rate business, like [indiscernible]? look

Chris DeAlmeida

affects a expansion in QX would margin both seasonally mind, had. across and probably is we more have We Keep our than weaker little expected company, quarter bit segments.

million quarter impacted operating of -- was that look million income. at into period you $XX -- however, in quarter quarter, If of weather, $X.X again, fourth think by revenue fourth first

$XX million of of income. million If you we operating about and QX, at a revenue, look did $X.X similar

So to that be better we those by is some it have saw. depression of and weather that would expect probably X% both XX% the of weather. some to Overall, impacted we market had I

Operator

you. Thank

from Rodriguez comes Our Stonegate next question of Capital. Marco

Your line is open.

Marco Rodriguez

quick the really business. a had concrete question of I follow-up the on side

a obviously of you that sequentially, bit quarter the especially side. mentioned here, normally concrete a have on You down

Just wondering revenues TBC saw much how in quarter? the you from

Mark Stauffer

out We don’t split any that further.

Marco Rodriguez

provide can So no that of organic growth nature… figures or that you anything

Mark Stauffer

Not some Chris that week-out, then about, was event just into South of the just we rainy and over. Chris don’t has weather, talking the answer we a having because the Texas big this really, was answer, Obviously, just coming of it. would positive, days, South couple historical I hard production quarter we took continuity a for faced of those I in offset then weather Texas, the had pretty TBC massive to tough in talked the Central by again, we quarter. from challenges of I in of full factors And days again the offset on last about But some said through, of for have you’ve here. be back and again, we we tough but pattern certainly, are And prior by the the freezes back stuff to prior in when but timing split to I of -- couple out want But the the call. to for the through quarter. what a go again, And back see been particularly being year-over-year addition then come a weather temperature that going down things freezes, every rainy on of coming specifically. us the I got within the very couple good addition patterns. week-in think the it mean, a comparisons, that front Chris's swings business clearly But Texas that terms

that pattern and and now, is hopeful more see concrete. can to starting get are we behind weather that improves, more we’re to us We

Marco Rodriguez

the then from quite segment, the caught projects on concrete of on or second delaying there that have revenue and was at ’XX pass being half activity, up into impact in least you. you QX, side related any Was And are on what there hurricane some the or that that? revenue of side

Mark Stauffer

I right your Well, exactly just think to there us that it new point again I did create segment, pushed to side, is is think what That Concrete the but for with rightwards. didn’t everything that. the necessarily opportunities on concrete it was respect any

that. So year, the -- obviously, shut in this a dry we families the then their the but time, and and in was to had effect just like course impacts. just work of went last QX the down being and hurricane on total where massive-massive we pouring and different city move jobs from we’ve down from stuff securing start able getting impacts shutdown to also in then the the our terms of pattern, thing, particularly months difficult both And into of again sites winter for And had Harvey job Texas period Harvey. personnel around weather

of difficult months, just I coming the the again, patterns winter pattern talked out weather the that, for coming into just So last months, months, as few about. winter the weather in just tough a

and mentioned winning both Again, shifted we’re of remarks. we And work We’ve rightward. see though, the and in basically work front us. and work. all lot structural live getting out that like commercial as that executing bids of a it. got his Having, work on opportunities Chris said focused we’re pursuing outstanding, again So we again, in

Chris DeAlmeida

really And entire -- up I’d work there for one a was QX. not out thing both point business of segments, catch is in massive Marco the

So big first necessarily the not driven the results but up. normal quarter by catch that operations, we a saw were in

Marco Rodriguez

bid And What a thus learned have on talk maybe than different expecting? projects you market what shifting? the bit your itself. bit expectations little the out how markets? bidding you’re you maybe What might And might am on. quick little that if little perhaps side, a been you’re wondering question, a I the bit about there talk just be last the industrial could from far

Mark Stauffer

leveraging We work a last in the Again, the looking of portion just really that side. would for at XXXX, work, we have spent lot lot been we on Again, spent ground existing time customer that time projects that waterfront of development relations this. laying of of a and business Marine year only portion the but just pursuing, really on the work. really already our

bids couple to there learn last closed didn't work. experiences a submitted things we’ve get our on that of with year. type that So came on, We we our fine-tuned process they did quite respect but were some of some we this bidding learning from great there

that’s of with bids So learned But in we learning experience, to that got we a last like the your point lot about did -- what feel some the we've we with momentum we area. year. now us of

existing bid work, to again, track work. of continue customers We on lot And already as have customers. for a this is that we

a to the more that pursuing. Marine it there’s we're these And it. things pursuing we’re the water off opportunity there's that industrial well, components But as some then also of with

we where we are. like So

year. stuff of starting execute from off the pay work We’re and we some last to on that did

we're pleased so And are. where with we

Operator

you. Thank

comes B. Min Our next Cho question of Riley. from

open. Your line is

Min Cho

our of here. questions on random couple just quarter, Congratulations the

First Marine about utilization of currently? can asset you talk all,

Mark Stauffer

where liked it be. down QX, would've from In we was to it

work the some bit that some in were work little to from work, of QX. we delay. that related core on think We a hoping to I of get of there’s modifications hurricane a did

in getting some delayed done contracts. was it modifications of to Some

So were we as utilization we much didn't hopeful for quite as QX. in get

projects. quarter with around the that some some think core of asset. point. last of and gotten utilization we’re of good spite had we’ve But pleased we’ve the to -- that these the now with in work results we done I We Marine very just in other modifications have won some

the overall, been just assets quarter some be those a some liked there do we pleased utilization uptick in So asset little anticipate of But we couple that we as would are we there’ll some QX. utilizations. throughout were next quarters more in go of with but

Min Cho

Also, in hurricane? the you the following was impact dredging fourth that emergency there any in positive from saw the quarter the quarter work

Mark Stauffer

have didn't year and other did tail that a also QX at fourth execute big quarter, of mods did yes, higher we was There really of up in We letting the assets. a little those the Well, and at was not some But some then quarter. done we gets execute on the that in projects any the so year. a strengthened some the bit was break fourth a were where normal end of the the in of activity There beginning with quarter break, a that on the we utilization as quarter. in of occurs of letting core out, fourth break. and getting

So couple a of of in little a benefit again, on QX. but we quarters of forward, expect the that much in to happened going not utilization front, bit next the that from see

Min Cho

then looking Texas don’t opportunities? the okay about really you Mark new you M&A? side. on you sounds industrial on on Marine for that side, bit or And concrete forward. opportunities looking about most M&A on little for a driving going geographies are pretty Obviously, just And Are need like M&A it -- for the business, concrete. Where just if talk that can your growth of you talked you you’re

Mark Stauffer

greenfield Well, model and clear March M&A. the on to be was both

just a right of think to on front not is things back an prior in of currently, don’t we got my us lot we growth organic going side concrete opportunities of we’ve So -- the answer basis. on

where if any I occurring opportunity on presents be want Concrete But side. to could necessarily the the in So point, potentially as opportunistic -- on the we’re be space, I your industrial we with -- Clearly, there. always, right targeting think think the to Marine side, see itself. we’ll not M&A the I M&A activity

to necessarily While drive our something it’s a not it’s possibility, necessity a that’s strategy.

certainly not in but the help that a potential eye to keener drive necessity as side, industrial out On boost something our for either, space. strategy a is we’ve to it got it’s our industrial a necessarily the growth

industrial to So that execute that we would today think be there’s we our lot the think opportunistic, again, now in a I say going report plan no strategy be do to just strategy. on extent I this to because might definitely have we occur, a something to see our sense than where I’ll on to something, selective, likely again, something front. we nothing we in achieve -- that to do think this, But something news -- the extent, space. intend not place to and of more makes But we’re the there's

Min Cho

mean talking And side to Why it your if on Houston. couple increased is maintain you are could competition Concrete Houston, to I you market then mean about see share versus in in quarters, last -- just that maintain a you've I so just competition continue weigh to maintaining you increase continuing important opportunity and share. if the of there? share expectations finally, the been you

Mark Stauffer

couple is, of think a relationship is problem; a it’s and short-term points; because two we driven is very Well, this one, a much business.

those subcontractor service a able across maintain and the quality think business, the to to we’re relationships, continue in got issue. we’re relationships, to market shorter-term We footprint them. general. just I Concrete that want provide that guys. the we’re a this it’s those general needs -- we the and those we As in to meet to very working be maintain through their reminder is Houston Again, to the important good We’ve to provide certain the service geographic think

said to market positive the drivers. I’ve businesses. and related are remarks, our accordingly. is related positive We recognize we there believe my macro the across-the-board in conditions economic and it’s indicators, this believe just positive As of react We should comment the that not is these Concrete,

serve we fact Concrete we our is scratch well good pricing. provide in what going going us for we as us. some our for sometimes, to continue of competitors areas as to opportunity doing on be at Houston, to respect growth, And side, think to markets the But clearly are with head long-term, other

so we temporary. of pressure any this as view And competitive

Operator

any like back no I’d Martin to Shane at turn the over remarks. time. showing further am I to conference this questions for you. closing Thank

Shane Martin

Everyone, the thank on you call. the on for look everyone joining seeing us morning, and to forward this call we next

Operator

your wonderful and does Ladies conference. today’s participation, you a you. gentlemen, and conclude Thank Thank have this for day.

may You disconnect. all

Orion (ORN) 3 May 182018 Q1 Earnings call transcript