ORN - Earnings call transcript Q2 2018 | Orion Group Holdings, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Q2 2018 Orion Group Holdings 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 be given at that time. [Operator Instructions] As a reminder, this conference call may be recorded. I would now like to introduce your host for today's conference, Mr. [Ph]. Graham Preston

begin. You may

Unidentified Company Representative

Operator. Group Good and welcome you, everyone, morning Second Quarter Orion Holdings' Call to XXXX Thank and Earnings webcast. Conference

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

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

open then questions. call the will We for

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

Mark Stauffer

efforts for to we of needs our pleased strive meet first with half second working strong Thank their our in the the performance I'm thanks our XXXX. safely work, like everyone to you, I'd hard X,XXX Preston It's start company. coworkers and our continued morning. joining thanking commitment strategic us by for and quarter while our to for results all our our and every dedication, objectives. customers' day through [ph], this combined towards

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

Our remain outlook long-term our as Marine projects. as well second expect and we the as we pressure timing head of mix confident segment some solid and quarter performed the this in for execution continue this well segment. of into continued strong particularly XXXX, to to Houston. margin to begin But as experience in In a pressure, abate segment, demand during and result we the Concrete

market see our to continue we strong drivers business. Finally, across end

solutions and across operations enhancing are focused share these while to specialty the in and for customers We our strategy company execute industrial of infrastructure, market building providing continuing our construction sectors areas. a premier building being our on our

The areas within changes these in helping improvements. leading opportunities for our bottom-line segment look to solid produce M&A Marine to and operational efforts. continue we've to improved both made performance and will We through are Greenfield

in of with our and and needs. pleased our expand segment, meet Dallas-Fort markets, we Concrete to the for to to Within market continue very Houston. to market our are long-term customers' Marine our We while are providing maintaining to opportunities. and believe be share focusing segment Concrete our continuing unique performance quality our continue share and on growth efforts central committed in services expansion services demand and Texas to expect see drivers We solid continues to there our Worth be segment

to needs. we to sets provide nicely contributed more of skill segment. and our has customers' services Concrete high our By our customer opportunities and our Finally, leveraging continues expanding industrial base, to quality are sector and Marine our develop to for market both addressable meet

sector this expect half progress as through of back grow to XXXX. the we continue We to

for Corps hopeful infrastructure We remain before, building drivers believe to the markets expect continue The will conditions see solid Also and which I've the stated accordingly. recognize with positive also across improved we continues billion and macro-economic funding our provide pricing industrial future bid in marine that exist as provide engineers the adjust to sector, demand bid sectors. recovery prevailing we disaster connection conditions positive. we U.S. facilities month, we announced infrastructure, maintain fundamentals and conditions Throughout our see, and on market favorable expect with services of of public to expand significant which waterways. segment Texas, Last both our opportunities. will operating remain the and Marine to $X private U.S. in the areas, opportunities Army

and continues to customers private bid side in see with sector from as we Caribbean. customers new destinations lines remaining existing and cruise to projects as storage and both associated continue infrastructure facilities of expand we energy opportunities or refurbishment promising they private opportunities track Recreational with refining, to water related their related domestically downstream public from Additionally, bid the exporting. demand

authorities, to flow. execute continue they and plans larger is we expansion from see Finally, which vessels opportunities increase generating to port their demand handle as traffic

positions for serve population units, long-term solid markets expansion, drivers. as facilities, continue medical currently new drive the retail have Turning business and Concrete grocery segment and expansion. The their to centers building office and our markets throughout demand to facilities. we which our leading educational housing retain distribution growth to Population centers, facilities multi-family to growth sector, we continues services, continue

As and continue quality the experience high I mentioned market focused in share. are maintaining services a competitive on environment providing market Houston to earlier, we that

In continue near segment pursue projects and We continue and our provide the to and Worth service our we and addition land inside other other offerings markets, focus to light the execute our continue sector and on industrial expanding Texas and Greenfield Dallas-Fort industrial central by and expect based pursuit long-term Marine combining which market the to the of work to we both foundation in in Concrete we'll work. the of share continuing to market opportunities. commercial structural all term talent are expansion resources In environment environment. market from

sector continuing We opportunities. the pursuing to this in execute we have already additional are project first work sector successfully industrial and in completed our while

expected solid driven we efforts significant We opportunities had bottom-line work our our provide potential results. closing, a Coast expand project of continue long-term massive on solid In the strong petrochemical opportunities. we've Gulf to first to produce along addressable year as the to execution focus our of to half

to spending. We take continue to infrastructure of advantage conditions and are well-positioned increased we extremely improved economic believe

plan in excited expand enhancing areas. on Texas to our Dallas-Fort delivering We remain industrial the We're believe by future our maintaining and services improvements Worth are Concrete our in markets segment on our in and made segment to to and solid We opportunities segment market strategic continued success. profitably Marine and sector. focused operating projects have the with as opportunities customers and continue bid future fundamentals high about our across quality we've we of our seeking we expansion central in execute growth for the continuing pursuing the the focused addressable profitable

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

Chris DeAlmeida

Thank joining you, thanks for us. Mark, and

were income net quarter per share. earnings the loss XXXX, $X.XX to segment same came from Concrete and of loss results quarter Contract million or share million diluted million or diluted ago. For our of an XX% These a per the which, second from revenues year $X.XX for second for net of came $X.X period we Marine our the a compare XX% $X.X XXXX segment. reported $XXX

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

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

compared Second quarter of XXXX to gross or compared quarter expense or revenues. or second XX%. a was XX% gross quarter gross margin for profit of a million SG&A gross which of or XX% second expense to $XX This $XX XXXX million quarter second contract of is the profit contract margin XXXX SG&A or was $XX million XXXX of $XX million revenue. XX%

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

$XX.X margin. was second $X.X quarter million XXXX This to a or X% quarter EBITDA compares EBITDA Second XXXX EBITDA million X% an or of EBITDA margin.

a successful million worth million. rate run XX% in on on for of we quarter second a we in $XXX XXXX, the and For and bid quarter book-to-bill approximately Xx. resulted under been are just opportunities ratio $XXX the This of

to of was XXXX, of million June was related which, of and we $XXX the $XXX to the backlog XXth, work of Marine segment Concrete million had segment. million $XXX contract related As under

to the $XXX million additional segment. over or backlog apparent the the the bid. total, this $XXX related subsequent end related quarter and low is million to we're the million Additionally, means Marine million have that, we between Of currently $XXX is of to Concrete been segment projects. of have In low projects of bidder $XX awarded and second

believe fluctuate for can current bid our tiny the and we outlook of due our supports awards, and opportunities low level backlog, backlog to XXXX. future While mixed

general as cash quarter revolver term we with outstanding working $XX primarily of the of the approximately million our which, revolving million was of Total was increased June to to the $XX total million line to $X.X million related on under capital and the $XX associated of to hand quarter of balance We XXth, projects. turning to with XXXX, ended credit. and mobile loan. needs access outstanding had Now second certain related $XX the timing of during sheet, the debt million in due placement debt

will our expect debt year and excess levels free debt We decrease reducing on we with progresses remain focused the cash as flows.

in Subsequent quarter. we to of second the financial the ratio at required converts amendment facility revolver. our being credit This the of existing cost. credit overall agreement compliance reducing amended $XXX remain including a with second end $XXX is to and loan we leverage while flexibility covenant million with end well million quarter, Xx below our $XX the Additionally, the of credit term greater million providing of which $XXX goal a the facility a is million the

Additionally, reduces the amendment into required XXXX credit and to extended term loan amortization. facility

Xx EBITDA. requirements ratio the leverage XX remain Our adjusted months trailing unchanged at

at the original facility. overall ratios. and the remaining unamortized reduces related we fees the this extinguishing amendment of Due this interest be Additionally, facility extension expense higher will the to levered terms, from

revolving interest amortized five transaction in available third will term approximately over by $XXX,XXX approximately XXXX $X.X this post for outstanding amendment be the result, a associated higher quarter million $XX approximately is As million fees expense credit. $XX Total new new are under of with million. the will the approximately debt with the line The years. be and

with the flexibility are us. this and pleased provides it We amendment

for are liquidity the our believe we with support requirements look lenders position continued, going is to business from our and continued forward. adequate for relationship. general long and more robust pleased servicing a debt our We than We also forward

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

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

the low the bid of have backlog segment. bids worth $XXX to and we're total to million $XXX And bid segment, the seeing have the we billion related which, remains Concrete been over Our opportunities is related several of is outstanding, optimistic million months. and $X Marine over Currently, healthy we activity strong. given past

$XX Additionally, given million the first EBITDA increasing our strong half outlook million. XXXX of performance range $XX of XXXX, to to are our full-year in we the

seeking maintaining forward, will Concrete focus we in while the improvements our opportunities Going business. business Marine on in growth our

of is will on future. the back continue remain In the shaping are focus both water. that closing, XXXX and services, over with the industrial on excited our to pleased portion we developing call. Additionally, and how we turn With Q&A off to the the I'll operator the begin about to call up

Operator

comes question first [Operator Jon And Instructions] you Thank Securities. from Tanwanteng our from CJS

may proceed. You

Pete Lucas

Pete Hi, good for Lucas morning. It's Jon.

Mark Stauffer

Pete. Hey,

Pete Lucas

Hi.

your to just the rate run You about what agreement, talking expense new wanted under interest agreement. expect new be touched your the know to you credit on prepared remarks

Mark Stauffer

leverage not As it current sits our currently will it there ratio, with change.

XXX So that's a LIBOR level. plus

So we we rate do on a tiers, today forward. does and made going have raising facility, The only pricing us of clip we that one that change interest reduced level expect throughout will since is lowest but the the change not grid to higher levels top save the are the changed so interest, little the which bit, at change. [ph] on already, that the that

Pete Lucas

there do that? about flow any repurchase, M&A, share cash of for in we how think about how debt priorities think And pay your you then, changes terms down, and should

Chris DeAlmeida

of as uses there. we at No to I forward. those of look mean continue will go we changes always cash all

paying on down to We focus will debt. continue

activity, be forward. opportunistic other as we for all certainly uses respect will and M&A any consider We go to cash with

Pete Lucas

in I falling is the in shift, concrete to down? a be and talked if you we private more trends reason that mix up or thinking it public; for up heard business, the picking of higher see private terms public should then, from any expect there, of correctly, about marine trends And towards

Mark Stauffer

No, set has we to it the are with deal just now. really way up

last has us at with space, So and public it's for so. sector the the or marine the private the generally predominantly business, over up private. between business, XX-XX sector exception we a our But in public look year as the mix concrete is in in it's roughly in which education picked the

You that But private the pursue the also opportunities, mix. in And will we then that the as Chris are industrial see percentages earlier. gave have we in those in sector.

And lot in our It's work more our marine concrete opportunities very work it's Texas. is more as Corp outsized the government be expect mix again, federal, sector be to there sign touched from billion But private state, the still I So why more in at is business on just industrial in local into there. great little remarks, result of the of and to going $X a level. a a positive the is as my us. for and we overall injected

our have nice mix go a we of still will we So in as forward. amount government work

Pete Lucas

that can can Great, what restoration me, what thanks. win, you look anyway for on the we much how there? And after recent to bid expect last coastal still flooding, quantify one Texas you and work of can from the Orion on, would

Mark Stauffer

the take the going Well, billion to $X that. all announced at Corp that of we're me, to a hard look

the in play playing since as that, I'm that So going the we of of again, think not like a - just to we of opportunities - But is I remind virtually year, this quite expect all, lot this pursue. events we said expected. we can rephrase is of it I going calls, of last like out that, I but to last couple that think, be all will most to out

again, we which then you the $X will seeing announced Texas. recovery the result the our of several like some in to time. modifications after say, be first what usually addressing longer see if of of some started disaster or the of seen we and will, That's quarters set expect period let's Corp couple over fixes event next term an contracts have to that. has that, in We months billion for is as That a

last we year as five opportunities to to So those said over or expect one years. before, four driven see by we next events the

- our of our in what just Corp And the expectation has kind narrative has so, been. in fits right and again, by with announcement that this what governor the Texas been,

that the to opportunities and correct a last fix having events store So help of to from the issues lot some year. we forward occurred of look

Pete Lucas

very Very helpful, thank you guys. much

Mark Stauffer

You bet.

Operator

comes Ben question next Klieve Markets. our Capital And with from NOBLE

You may proceed.

Ben Klieve

All you. right, thank

So, strength you few more demand about difficulty] elaborate to segment, demand and of the bookings of marine really quarter [technical driver where questions can bookings bit also point? lot that the a you And during if talked is from know of multiple areas this a me; I at the in but your segment first, quarter? difficulty] this the [technical then both current end - in

Mark Stauffer

yes, on really Well, our across of we in this touched and remark. seeing we strength kind board, the are

the level from at federal of opportunities at are DOTs, at we that federal local port seeing Opportunities engineers from again the So, the level, from the U.S. are in local Corp the level, level. Navy, state state authorities mix.

We outstanding have on got outstanding, bids that. work

it recreational seeing local, so We various all in. are kind energy, all are of we executing we port the customers, work sector that we for from today service, regions state, side, again across the from are private seeing federal, and board the marine Private opportunities really of sector downstream authorities. customers on in from

very activity And and got upcoming in we that are positive we of - see are including a opportunities and that in we pursuing have a now. tracking, So the lot we we we are down lot there opportunities we've additional down are of got that work bidding right Carib there. Caribbean the on pursuing, executing

with and pleased again, in, bids when the in, So win we have side, mean and awards have a that seen the I we and with opportunities that just when rates things influences of of that the marine very that. go nature, on timing it's see seen you

we look a all we see low we at of look all pleased So at backlog, all are look look single we We the us of And in where win one us, look with at it any look that. we we opportunities look we of at bid, at look to at don't the kind but we we the front picture. thing, holistically. as at we that are at rate, of the

Ben Klieve

Okay.

the across to board, are is that… opportunity translating seeing and across bookings, board So, those the you are opportunities

Mark Stauffer

Correct, yes.

Ben Klieve

if out in is classified industrial to of any separate the separate segment, you - excuse as me. any have sort - had broke been increased been would as segment; Okay. had bookings that there In the quarter you have a industrial that's bookings would segment, the in industrial,

Mark Stauffer

Well, work. this - We the point not being where we reported would have to is us, we we we are pursue a but it's was have continuing to are it's are. are on me; bookings Obviously to as excuse - where separate, backlog, us with for had that reported a out. pleased Greenfield we effort some if continuing [indiscernible]

to where getting We have last laid the XX done a of in lot are. work we us months,

as I our work, executing satisfaction. are our and we We in successfully, much to customer's very project completed very remarks, first said my

So are step hope bookings lot of go we in got be that forward. increasing and we we tracking, revenue to as

Ben Klieve

during then, the with of the performance there is And to segment was in during the or pulled regards work [technical you the work in imply drivers had year strong second performance, that quarter? marine the difficulty] of difficulty] with really second quarter, strong difficulty] any that that that being phrasing does [technical particularly done one imply that being that a was just from set timing [technical the

Mark Stauffer

- execution Well, also made is, a different building good We're I had of no different year, business of did backlog executing we than look. there's we've often a and last executed obviously several use lot when we that's And I for just marine. used the think meaning mix, work kind and forward. year-over-year we're pleased changes on phrase we with months paying the there work say last were than and we is off that on executing of have in comparisons. last what because we've timing what last that's a forward as just work this the schedule is think with the between I the looking of again purposes as than months, XX think to when for, timing quarters our in year work so marine that's had year the we're of we go depends year, term really type deeper just it I nothing you so quarter business good in XX We marine comparison this we so

Ben Klieve

XXXX the pressures quarters of regards give then you subside to you're how, a margin that those there and and are gives believe these me that's the couple to pressures the confidence? margin are what That and with what improvement last And going on for you dynamics seeing that side. one competitive that in you sense looking will pressures be

Mark Stauffer

seeing macro Yes, great think we're as both forward. trench and in level go optimism that, and a for reason from we from question, the level I seeing we're a

the a just last that control last work efforts some There here locally. flooding disruption of I've last So new and by out delays with flood had and seen Houston has and been in of year there hurricane QX it a in result market we've big the as the year. County Houston all began I with the we in Harris city been we've and seen

a So competitive that and that's just I an right really changed that had that's talked think calls, made in seen we that's win in it's been on last about the activity what had nothing's see be the I've to them that push impact and environment seen stuff, work from little and regard seen. a of that, lower a available reflected delayed we've some you in right the where real couple it's bit say than like word we'd is that would I we've that what

architectural indication the in index flood level are its lot if out tip going work to will, think so been way for of of what lot of future an uptick you through of kind changes activity half stuff of the also that is a down the and level a that the of increase high cursor a in the We're I of that we're encouraged the we see of will we're which the that of the the from and seeing that's in now back architectural so we're we forward. is very For, highest over on a think get the the very encouraging working expect spirit but as margin that through that seeing improvement remain where very to the in that a seeing control we signs the in that we're all south that as and said some year kind in into go that for the so we like coming trench do getting there's the 'XX, market lot start nation, the abate that and area macro very pressure been level projects Texas are is very, confident forward having starting and There's go in seeing we're excited we about. stuff a we're said but do long-term system. we've

Ben Klieve

That's back Mark. helpful, very Thank in you. Thank queue. you jump both. I'll

Mark Stauffer

Thank you.

Operator

question And Stonegate Sir, our next comes proceed. Rodriguez from may Capital. you of Marco

Marco Rodriguez

morning the kind wanted taking the questions. past just normalize take and then Thank last in Good digits. here concrete concrete of have EBITDA I'm also my regard from in at that's the relation is that lower the back in you the in the of mid presentations come increase first remainder assuming then assuming want for much segments I'm EBITDA forward is you primarily also better on marine you most looking guys. kind guidance on then guys XXXX, got here kind side and obviously guidance confirming the and you that and EBITDA of the so of resolved expansion as the in that to the if far going going side for pressures the doing Huston I the mostly with is of around to your obviously line the is the fact be to of increase with fiscal sure make a I'll that margins in at kind question the single that to made kind segment seems the level I side the teen run-rate construction will. as just to marine at that as that fair? given level, of level on I'm

Mark Stauffer

the I'll first part. Well, answer

I you the your again margins stated the both segments. I on analysis correctly it in think think that of

expansion the forward basis going forward, we expect of a a on I we don't to we're lot think concrete see to know side see margin that half on abet. in I go forward see but We as as abetment some as will bid improved could again be the back see of pressure year. the I go some this as we think we of that go

Chris DeAlmeida

that side for in steady follow rate. business on includes that growth on a just of months the we as EBITDA we margins on so million EBITDA QX, to nicely the $XX $X XXXX at the rest of just to look $XX start looking margins of improved our concrete and start and That's in demand we're business in the performance a its to the marine should the and from trailing year. million hopefully if concrete the Even look further range of continuation XXXX. on XX as the $XX today year-to-date were we a that as then $XX how puts at that you kind the to naturally QX, million Yes just for mentioned million to you of I look into EBITDA EBITDA about the into least see effects with on run XXXX reported on think I of we Mark, total that I the contribute had all we million at you think mean hurricanes about of EBITDA amount that at look and

Marco Rodriguez

of Got normalize it, problems of kind lot done the months kind that's and all I'm moving going you're helpful. to on work has a to expecting weather so a projects heard understanding the getting of you lots in you saying what in just sort so of And schedules just you the normal for correctly had is pushed what I'm understanding the that of normalized are abetment I to if that you're if will where guys if then then is XX just margins the so last and correctly and so you pressures normal rate that that if that issues bidding I'm guys you environment has or clarify or right, construction Huston the happen? cause want Huston, of work along

Mark Stauffer

been it's see a at think it's you healthy. of things level one couple can I and activity the Well, bid

of are But that and we that to bid that just increase expecting to have work. indicators us things on abate expect we expect expecting forward opportunities I you micro additional said mentioned indicators go pressures the come been of earlier, forward. that mentioned we forward we as and we signs macro the continue expect you lot go improve are there showing the just We we the work; same go will bidding know that I level to opportunities are on that increasing In to as we forward. a it's we pressure that competitive lead of again and leading other are seeing about seeing opportunities improve as think we're that and as words, some we

Marco Rodriguez

to wanted bit Okay, pretty understand. issues just take bit flow Then will? cash from just about usage, the flow little can the if how moving significant look working you to about a there operations, here here capital from the little of to talk those here a just kind you statement or hit cause talk cash sequentially drivers what

Mark Stauffer

the so and just a course I to and fast when as well. quarter got job as surrounding the actually in mobilization. can in really receivable mobilized end absolutely but that re that's for some I would a of working out surrounded around of of timing in at is the capital built no, particular the translate quarter, a larger but jobs at that will so is through come the expect of one into mobilizing timing and that we're couple look effect through increase we've that we the third Yes, reduction of purely around multi-season then a

Marco Rodriguez

expecting flows is that you there that accelerated? And XXXX your cash an looks is Understood. are increase similar spend XXXX kind to bit operations of also CapEx a are like fiscal from for expectations

Mark Stauffer

of timing Now end are still it things side Corps CapEx we of has from on when or timing as full-year per occurring, that a CapEx a the million loaded. capital of those standpoint as little front $XX that been that below all the is so far of the expect more

backend that a the the into bit expect as year. we go little So cool off we of to

Marco Rodriguez

quick Got And you. last question.

was numbers. as far as little it that successfully completed can of not maybe to you a your it On get what that can I and for lower you project of bit bit was the kind necessarily than little margin that foot am sort expectations so looking something? show specific that the profile kind of in here, just you industrial you But, talk a saw? you or about expected guys door

Mark Stauffer

No, exceeded actually our with honest expectations. you, but going - to be it get am I to not specific,

for work laid we us. So well pleased. We were out year, year. on we last are very a of learning lot work bid we missed did some Again, down experiences but those that last

have We recalibrated.

and work year. backlog coming won have into the We had

We one have it's I that on expectation. And our project. as it said, now, exceeded executed on actually

are So with we it. to lot got we And execute with still very and profile. But pleased work are do margin and very of a additional to We where are pleased where focused with that. well are. on the we pleased - land we work we are

Marco Rodriguez

Thanks a appreciate your lot, guys. I time.

Mark Stauffer

bet. You

Operator

Riley. with B. question [Operator from our comes instructions] Alex And Rygiel next

You may proceed.

Unidentified Analyst

for Min is Alex. How This good are you? Hi, morning.

Mark Stauffer

Hey, Min.

Chris DeAlmeida

How are you?

Unidentified Analyst

two questions. quick actually have I Good.

seeing First Corp, that the $X.X had to regarding sounds are mean modifications you dredging Corp; Army like I some the referenced that contracts. you it the Army billion

been on what you volatile And the contract be So do expect have steady like you that be they like? helpful. be do to comments you additional should have or just bids past? it Any would expect

Mark Stauffer

Well, it things. separate two is

we on our contracts of work done the and since for the dredging. So I has that's have seen several pot way of emergency one out of to them the think modifications of storms of money some one kind around more revolving that that been the get really -

So that's thing. one

normal that addressable we seeing down. And and are sort the market we of letting is here the that at here. fiscal up are of of the very have kind work next the typical still we typical thing couple months - they that are remains of of end volatile their Second year,

a or - bid of is So let of several of recovery expect miss know, normal we to we stuff that so has stuff. sort they hit stuff pot seeing disaster schedule an of separate are million out $X normal of budgetary still - The a sort that and be that that abnormal budgetary you money. projects are

coast. So the - and the list a Texas we projects control centered in upper around and around of tributaries that's Flood of expect lot projects. a around that will be

stuff separate apart that we seen So expect and other we out will over I buckets it of have about. just come two from and that work And that be time. will the talked of kinds

bid could So opportunities - type additive. will of be that what normal pursue. necessarily will But We work of dredging on. of some schedule from that going to the letting our additive. form could we although it are and exactly won't be of But be. involve on it not do And be to that we sort that than something we And separate know a expect dredging. to will be certainly don't that is something of and we types to different involve is be going that we it involve construction it's think some it dredging. more But going additive activities will

Unidentified Analyst

am talk And you. M&A a more bit your Or your about services? now. kind pipeline your time? in are at grow you looking this could right concrete you presence on if Got assuming Okay. Are side. looks what or just just then markets to I like looking markets existing the of add little that more you

Mark Stauffer

existing the organically think we through looking operations really I Well, on grow to concrete that are have more our today. we side,

As always, never say I never. will say

opportunistic. would any it. in at be We opportunity the hard we will right along a segments, the take real comes of look If certainly

things in Fort market, talked that operations juncture, remarks we concrete have expansion up improving Central on the on in industrial our on capabilities. my I focused standing Dallas, been marine, and the think this in have about Worth, Texas, at

would has that think our about as think looking enhance opportunities potential or industrial be going the focus high accelerate would forward, Having So - what M&A we said list been our on. effort. that, expand, I it's at on that's

would strategic And our be at say it's look that the think this is our take with of still that forward facility. pleased what for moving our we Again that M&A hardest M&A a $XXX we either But will would bank having list juncture. the we underlying Greenfield, well. the would same it's though are us probably the but very with area think now the credit I segments the gives as as just a just that at thing amendment at plan - or in of and - opportunistic we to plan the have support other all the million that's Very flexibility we I last appreciative of I would - way. thing revolver. the lot of whether top with that be our are opportunity. Having said

continue available to to we about down year talked that as pay year, this half expect back full have next As revolver will Chris us to debt we extent and have in the M&A activity. of the we in the to

very pleased that with We are facility.

Unidentified Analyst

Nice backlog the the Right. Well, it up and apparent in little on your like was bid. number congratulations see to quarter.

Mark Stauffer

Thanks.

Chris DeAlmeida

you. Thank

Operator

our Thank call. I your the today's you. Ladies and gentlemen, portion Q&A to now would of turn over that Graham back Preston to host Mr. call like [Ph]. concludes

You Sir. may begin,

Unidentified Company Representative

our this time quarter. concludes you So speaking Have day. next with to look your today call. Thanks great we for and forward a

Operator

Everyone program, This thank today's day. you and all the you a conference. gentlemen, for attending have does great conclude may Ladies disconnect. and

Orion (ORN) 2 Aug 182018 Q2 Earnings call transcript