Orion (ORN) 27 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Fran Okoniewski	VP, IR
Mark Stauffer	President & CEO
Robert Tabb	VP & CFO
Julio Romero	Sidoti & Company
Alex Rygiel	B. Riley FBR
Marco Rodriguez	Stonegate Capital Markets
Poe Fratt	NOBLE Capital Markets
Gerry Heffernan	Walthausen & Co.

Call transcript

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Fran Okoniewski

Good morning everyone, and welcome to Orion Group Holdings' Fourth Quarter 2020 Earnings Conference Call and Webcast. My name is Fran Okoniewski, I'm Vice President of Investor Relations, and joining me today are Mark Stauffer, Orion Group Holdings' President and Chief Executive Officer; and Robert Tabb, our Vice President and Chief Financial Officer.

Regarding the format of the call, we've allocated about 10 minutes for prepared remarks in which Mark and Robert will highlight our results and update our market outlook.

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

Mark Stauffer

and by resumed update storm. after and to an on operations to impacted XXXX. turn Thank our results, to our most operational our this Many good of the to I'd past our Texas this our full-year ISG Along reap other Today, our I'll to and and today. Then and year. like project and fourth by then team support provide resilience performance. to obstacles, initiatives I'll ability our entire they is before challenges the update like team proud quarter we Texas work, performance winter focus vessels, for strong our support of week we'll for all being provide XXXX that field on with through our expectations and the Thanks yards, start employees our you, members discuss our from joining fourth affected performance, continued financial families for were injury of outlook impacted. an overview markets free. our morning, and week our working their quarter. I'm provide updates we to that continue team for way I'd last commitment our HR the winter performance and on construction our discuss on and to employees benefits thank foremost into by improve to overcome same come go back ERP operation in sites, to and their are and storm, programs assistance with and the discuss XXXX. our our hardships financial begin all improvement home across Q&A. provide us came healthy discuss and everyone. priority their an Robert shops noting offices we on will implementation

deeply to an workplace. program remain we Zero our committed our Target incident-free such, to support As vision of

financial to Turning results. our

market demand bids XXXX, outstanding initiatives, progress made of billion as near efficiencies. labor QX year-over-year Overall, our we our bookings remains end especially of financial directly This by implementation positive, adjusted around and $X.X is of end level approximately performance attributable our XX% the During significant record in and to at ISG EBITDA. equipment in the progress growth the XXXX. evidenced with

pandemic to support our These would implemented ability through for also add continue transformation opportunities. intensifies increase bill bid improved infrastructure from with opportunities expect bid an opportunities combined see to COVID-XX the bid continue the XXXX. see additional results as ISG, headwinds our progress abate. as and We in new the A we and deliver to operational the we catalyst rollout both to through segments, we've vaccine factors,

over discuss Robert? QX. financial call the Robert our turn for to I'll Now to results

Robert Tabb

was of and decrease Concrete an provide fourth project the This the results projects financial XXXX result better and for us. quarter position $XX.X utilization gains the Starting to segments. will XXXX. and I the quarter of Today, was Revenue for both the for continued everyone, the to the Mark, the across you, XXXX, period. and increase Marine year-over-year outlook. profits labor financials. million full-year review company's company's with quarter both mix rose due in discuss timing the segments on year in This current quarter $XXX XXXX million. joining XX.X% of gross to update execution were the fourth liquidity Fourth thanks, $XXX.X compared Thank and fourth in million a

XX.X%. As a to percentage of XXX points basis gross revenues, expanded profit margins

of were resulting million, The XXXX, In timing quarter equipment the our Despite Turning of adjusted of and revenues the result still segments. and profitability had improve equates to margin This prior-year the as to due was of adjusted and in segment of to in $XX.X our revenue an decline in an of labor $XX.X EBITDA EBITDA XX.X%. had we Marine current we million period. margin an million able period, million. an $XXX.X segment XX.X%. a In of revenues $XX.X of of this and better EBITDA to year-over-year fourth adjusted our utilization. EBITDA adjusted projects this, mix

had for a the year loss $XXX,XXX in compared of Our current Concrete $XX.X of to quarter fourth Concrete in to $XX.X Adjusted segment million of the was the fourth compared of a EBITDA period. quarter revenues XXXX. loss million $XXX,XXX segment

Concrete plan. improved by decline were or increased the for an projects. revenues. with decline timing increase we to $X.X the was the the revenue fourth year-over-year to SG&A than Adjusted $X.XX awarded XXXX compared more revenue due grew and year-over-year for is being million diluted year-over-year charges, which EBITDA to in compensation current other of million $XX.X $XXX,XXX million prior-year incentive period period. an That EBITDA of newly Net includes accrual expenses the for decrease nonrecurring offset X.X% driven the annual ERP the a from margin adjusted adjusted quarter were $XX.X to million. in production or volumes Fourth of on $XX.X an The to able represents margins. adjusted X.X% start-ups share. said, net operating per per in was predominantly margin fourth income X.X% quarter quarter Our certain segment's $X.XX was earnings of or resulting This million of X.X% for Adjusted share, $X.X costs initiatives. related income EBITDA

metrics Now win and to bidding rates.

the the in quarter win times fourth XX% on a XXXX, of we For successful X.XX and bid $XXX book-to-bill approximately of on opportunities resulted worth ratio of and million. rate for quarter. were This million $XXX a

backlog December of $XXX As XXXX, for the of XX, with and million was $XXX segment. associated $XXX which was segment million our Concrete Marine million, our

to awarded and the of million segment, end million low of were we to Concrete we In subsequent have million the is bid. Marine backlog currently, projects over the quarter, opportunities. $XX the fourth apparent Additionally, low bidder $XX to have total, this, segment. worth $XX Of been $XXX between related the related million while or is of

to sheet. turning balance Now the

charge and into the both and XXXX, we approximately covenant X.XX the within December was of in ratio times, cash XX, revolving million and related revolver availability of outstanding facility. to to of leverage $XX As debt, We had quarter translated million $X requirements. million times ended $XX million million term a fixed our the with well of X.XX of ratio loan. This the $X.X a $XX credit related under which

pursue current awards new our in Our with flexibility us and position to backlog. perform liquidity provides execute strategy, work on

to we to XXXX, million normalizing certain backlog expect to bid gains while for XXXX, our on markets, to our expect end to comparable impact opportunities, adjusted $XX the and in which the based is Regarding of COVID-XX assets. range, we mid EBITDA the continue sale pandemic current on outlook be high

nationwide company distribution a revenues we Overall, XXXX As gross vaccine, macroeconomic will and record update high in factors record year as of The year. profits, increases the was successful the leading as an achieved to develop EBITDA. annual EBITDA provide adjusted a near such COVID-XX progresses.

on We we are last progress and improvement the but XXXX. with in focused made was execution continued year that pleased remain

turn back the Mark. to call I'll Now

Mark Stauffer

Thanks, Robert.

our markets. to Turning

As in I've pushed we other to certain right, while has continue projects pandemic-related stated to to previously, the markets pursue in normally, both bidding function our continue end sectors and segments. some opportunities uncertainty

our bidding differing profitably Our focus ability us continues between to and markets to opportunities adjust these is serve well. on end

longer In control federal, Additionally, involving visibility. in we pursue projects, sector facilities greater we DOT to public continue and with water, to select us port local levels, larger work provide the bridges state segment, target duration and the Navy at Marine operational continue in flood projects segments expansion and our opportunities over to environmental projects. both including and

the We space energy the including to tech, with functioning opportunities are Caribbean pursue sectors. opportunities in e-commerce market. Concrete are segment, large and also materialize retail bid upcoming we continuing to the the markets, end and In private projects expected our continuing in in see project sector

working currently XXXX, we mixed-use projects initiative equipment labor to through involving structural efficiencies and Houston. improved have We resulted our improvements, similar operational management, In implemented are all and management, on we leading in and also we high-rise project effectiveness implemented execution control. corporate in pursuing to the towers and those cost are as areas, or residential Throughout Austin changes improved enhancements we've these process. previously ISG larger on focus

our improve we to scale will our we operational efficiency, implementation. As solidify as future. to continued in not have us efficiencies, also part our push This allow these only of but system ERP of operational new with the our grow process the efficiencies

integration on and reminder, ERP across a is to as HR, payroll result platforms operate we've full financial. separate system and management, of crucial segments. including across functions, our businesses critical CRM, we acquisitions a achieve currently the As made, our data project

for short-term, increased will plan. cost platform crucial provide our our investment ERP us the While new a the to execute scalable becoming system strategic over an in

difficult has along continue proved incredibly in of tragedy. all, one lead hardships sheet. perform strengthen to challenges, I'm current to a to it This challenging group people. year liquidity a environment team of in been has balance and proud performed well improve our be have challenges that we environment, team's and with our it our and Through We focused, such our past it. great and I'm the and in and the brings ability resilient confident to and

work effectiveness focusing we and costs, drivers in we sustainability believe our and the incredibly positioned our executing controlling unabsorbed and that have work as look and profitability markets. strategy hard forward long-term both improve We with business indirect to our remain current and of our we labor capitalize and to equipment. we execute well were projects the markets, able dedication economy. in on we We shown particular, across confident positioned demand diversity, are are efficiently and development, a post-pandemic Through move end team, to by and operational of the our post-pandemic on growth options well demand toward on

With turn Q&A. for the Lastly, customers, shareholders support. our that, we'd like for the call suppliers and operator their to thank to I'll continued back

Operator

Instructions]. [Operator you. Thank

with question Julio Our Sidoti from proceed. first Please is Company. Romero &

Julio Romero

Hope all morning. you good well? Hey are

Mark Stauffer

Julio. doing? are Good, How you

Julio Romero

I'm good. Thanks.

the on about range? what get factors wanted I you just is guide that guidance. EBITDA of So to the question big my swing first to are high-end the ask your

Mark Stauffer

we're think backlog, in we I the we this now. we respect mean But year, about is good Well, to around right feel in remarks. where kind comments coming we still the into got where front are we've the COVID-XX. the we of opportunities the the are with with made bid the see I uncertainty

last to focus meet a or guidance, did a We've got year. We've plan. is good the Our exceed good good people, team. like got we

expect see on again, focused now, the catalyst. bill, so if be functioning thing same just positive would to But that in we focused we certainly, markets infrastructure of we're we've it. end progresses. on the And year and beating got XXXX improve we the as And kind a and those did an

Julio Romero

Okay.

implementation, talk annual the benefit beginning how And about realize the if for still much investment in On XXXX? you're can XXXX? expecting to expecting just full you ERP you're

Robert Tabb

think said million the $X Yes. CapEx on on We another the somewhere between -- as going the expense and it's the to in and $XX million we done. XXXX, is side once we'll and be or cost $X stated, all that side. $X million In total somewhere million we previously $X spend million range

far realizing those we'll XXXX. the gains As seeing schedule. able benefits, as be that in to on start We think yes, still we're

Julio Romero

and throughout in labor just if efficiencies gains the ISG the equipment the And plan, guess fourth can cadence that discuss of progress kind year? quarter? of year? they Okay. those throughout I you maybe what's on Can you the the saw so, -- the And of

Mark Stauffer

Well, I XXXX. we've seen in throughout those kind of -- think

continue was improvement better actually indirect in indirect related labor, So lot improvement saw XXXX in we at actually the in a to of around we but we I look QX, If efficiency indirect, had equipment. around think production a on project. the have control -- lot the improvement of we the we indirect,

-- project the to a But to our has quarter, have costs. -- those focus that, So focus fourth the ISG on the more to is it's a weighted with consistently release. I to as controlling we performance been in earnings or efficiencies, little in respect little with -- yes, to consistent mean, noted

went we've I through think demonstrated that as we XXXX.

Our I going think And just those of I keep remarks to that to ability noted as we And better. to the -- with kind that's the even go-forward mission we've we think that. manage that is of our with a good ERP, in costs done on as enhance go-forward. we're as implementation job we've

So right now, about it's consistency.

think keep continue in to we've on And demonstrated performance. that have quarters. in I our last just four consistency with to the that we

Julio Romero

Okay. circle you. I'll follow-ups. and Thank pass back on it any with

Mark Stauffer

Julio. Thanks

Operator

Rygiel with is question Alex Riley next Our from B. FBR.

Alex Rygiel

Thank you. gentlemen. Nice quarter,

Mark Stauffer

Thanks, Alex.

Alex Rygiel

their Or be early was any how could proposals the you how infrastructure in bills? address impacted of infrastructure previous impacted? have could Army Mark, bill budget you and the budget Corps' possibly, seen

Mark Stauffer

it's I think numbers of things. some right think overall on heard, that good to a we've inconsistent Corps I question. couple One, spend we've relative No, Yes. heard things. of And and the the of a kind the now,

the trillion-type bill. infrastructure think they're if talking -- President I website, about significant, transition pretty a $X on

budget a kind to a But details piece think trillion, to with of I XXXX, to the we in saw that the when stimulus. example, very, be but I be your infrastructure, it's will billion of we bit stimulus of kind compared your trillion, -- the latter add the $X.X the Corps' lot the But $XXX a of bill. be to significant. seen see think operations back way budget Corps' it. -- very a infrastructure had budget relative -- a part they about $X normal for small And so different of a by Corps' Engineers, So the whether remains question, XXX% bill, relatively little the can stimulus than stimulus, to their the bill relative overall sort of doubled Corps budget -- with of to

So Corps see can we think could we DOT other And significant the other funded transportation, it think transportation projects we again, infrastructure. potentially very, surface by that be for be very Engineers. of opportunities through and can

good will we very business. us it So catalyst a think be for across our

Alex Rygiel

sort do from this expand turning then plans is Concrete bidding of Can And have standpoint? intermediate environment? the segment any Backlog great. a geographic That's to you well. up for And holding pretty second. address you the aggressively a to term more

Mark Stauffer

Yes.

QX -- of of end the question in So markets. -- as saw if is last I back there And adapted. part the pullback year, is book-to-bill I functioning to think kind as mean, of we've the there markets go yes, first in you of the the a just our QX you remarks, said and sort are

come think end I are think eventually back. impacted, with the that's is will news that being the us good we those for -- think demand. deferred We those markets projects that

bookings of We've the the far. for seen you've that announcements stretching we already Texas a very nice on saw for bid some we QX bid that's opportunities. the Concrete right So yes, in seen our project with so yes, for continue positive first are quarter now, opportunities. future borders in And But beyond business.

our -- said Concrete But improvements we've all mantra the the opportunities past we've are to work to I've that and before, on of group strides As coming done the internally backlog. made. in that We're focus with this out. focus really, we're our the on in is along year, going and project

the progresses work think of with wins. and a year Louisiana some that we'll We currently on outside we of in both expanding have Texas, Florida. the of And customers, lot are are potential project in opportunities news as we reach terms our our state our and with pursuing in

Alex Rygiel

us you margins? sort in month first a lastly, revenue And sort weather Robert, think sort help light great. should of That's in of of bit understand maybe the or EBITDA could to Texas EBITDA difficult how of we and quarter little about and this the

Robert Tabb

Yes.

closer break-even a revenue be were year-over-year at you're in I back dip maybe to expect QX us, range. a we XXXX. if I expect little from than to think X% profitability bit of XXXX -- XXXX, I to in looking a that to standpoint, comparison the

that As winter we the the we'll reflect make because that we out guidance, QX weather. year up. full-year progresses, so of did as But we laid in think pullback it

Alex Rygiel

very much. Thank you

Mark Stauffer

Thanks Alex.

Operator

Our Rodriguez question Stonegate next Markets. Capital Marco with is from

Marco Rodriguez

you Thank taking morning. for Good my questions.

Mark Stauffer

bet. You

Marco Rodriguez

I talk was wondering about if maybe could you bit your a more backlog. little

On going the prepared it well. seems remarks, are like things pretty

in good what feeling You're there. have pretty you about

looks us kind is If two margin turn how kind stuff, the Concrete in you profile help the of flow of sort that can And fiscal maybe can talk backlog that should the backlog. what quick into understand, backlog maybe while about understand you pretty segments, if XXXX. of I like by that

Mark Stauffer

One, projects, a bidders talked guidance. factored depends on Again, work Well, of think things. we've on projects. the the it what into of type we've with I couple of about obviously that the number and

good where to again, think, factors about relative I we the macroeconomic now. right we are feel

the opportunities got said public of in in we lot Marine space. we've the segment, a As sector

as We of percolating, of and are seen that. private we've to opportunities kind said, already we start evidence expecting, sector

think, so the to it we as on the focused -- whether achieve there see objective. is And to said out competitive pursuing But our again, that is always opportunities remarks, view. to what best us opportunities else opportunity I pursuing opportunity, given we're our be. think bid just the that we how on that option in those give it those -- like in upward the press pricing going We'd depends and

to achieve there, are want course, think So but profitable also our the give on projects we objectives. that we want to focus those we on will that the to of focus opportunities best out us

think we about for XXXX. the that backlog the and I talked just And supports sum we're what focus by we we've to I I up course, So just saying, did we and like feel on think with of look, in beating have and as out always, opportunities it it again, going touched on earlier, comfortable I'll XXXX.

Marco Rodriguez

Got it. right billion bids these outstanding kind and the of sort for of there. the had call, you in maybe that, discussed the believe kind with bit sort the of sort And conference Or that terms the prior were COVID, in little I guys? obviously cleared about Are bid the talk slower that Can you markets at quarter, and there? $X.X level then maybe of in you're decisions. fact Just a in reflecting pushed make offices been of of kind decision-making just having of of because impact? to that had outstanding bids obviously not still you of everybody some away

Mark Stauffer

largely three I it's think mean cleared quarters. last away. I again, to the everybody -- I over environment how in has the learned work I think COVID think

And so end, the process. kind of year of fairly that's -- the at a in I business a reflection think normal development a of churn

projects There's two So projects that. or our it turns work, We bids and might dynamic. the try in and off it's may re-bid a three bid somewhere gets outstanding you on, on deck that. or gets coming reshuffled out, something quoted project, or There's very it deferred coming gets then times.

All that's of normal. fairly

look our at again work where the XXXX, at end we And It's quarter. at -- was so of year-over-year up time. pre-COVID think had as the quoted saw in that third I and bids feel we what over which that, outstanding we up we that good. It's at versus the

the did an a year, got in that's we good we as uptick see, think book-to-bill. latter our part We So the sign. of in

can that see in and where QX. X quarter, for were over You QX below fourth X we

normalization the will in going kind it's I'm of functioning I markets, I the markets of indicative say environment. but just think not of say, So to end of, end

of result that or as begin us. can we markets of improve at and again, And abate good think good both as we at that further that. a upcoming, as parts to normally again, vaccine at functioning out so even a that. least about COVID rolls hopefully, And look that, more opportunities see Obviously, starts we feel end the other for we that's indicator and our

Marco Rodriguez

or Louisiana Got there? to answers relation it. and start support talk a the assuming an that Concrete about expanding here Florida. some business, Can on necessary win to your is your maybe from around And prior the then that bit bids question, bids to business, -- you little into see remarks infrastructure you question what to another standpoint in

Mark Stauffer

have state. obviously, stepping But Well, footprint. Yes. Texas. the it's in of normal the in neighboring the lot experience a state from cases, out both working It's we of Louisiana,

a side, it's not Marine on far And a -- too experience in that So like said, we've I got lot segment, of have distance. working of Marine we state. and the

market. perspective, from confident with big in presence XX we Florida, we've in that. step even a our ability So and into to team's state than Likewise, had for that longer legacy a feel years, that

on that of again, segment. lot a got with ability work. leveraging confident and state presence execute very Concrete our group with we've that we're Marine feel So infrastructure our in around to that our And focused that

Marco Rodriguez

can update if it. Can Got non-operational an and one just And provide Lavaca sneak West then I'll in, East I Port and sales, you and queue. in Tampa, back Jones? asset on jump last one the

Robert Tabb

Yes. start was buyers a City February designs Tampa. with wanted their a hearing other with on their Council concessions asked plans. and The continuous. their of City and made the couple group a There to The drawings XX. for I'll

that is we'll an reconvene get X, what So and on rezoning they on update on back April will X. April

East work working in West the far up can finalize real financing there's Jones, bank today, here. property, Lavaca say and to interest their the funding. no pattern activity. As and the or their I wrap through that continues uptick buyer with increase an to that. Port We're awaiting report On but been guess, and as to they're update an fees, I

to able on property next, a that So comfortable we'll to X XX in that we feel transaction it, call months. we the good And is. that feel get be where property

Marco Rodriguez

time. guys. appreciate really it. Got Thanks I a your lot

Mark Stauffer

Marco. Thanks,

Operator

is Our proceed. Capital with Markets. Poe from NOBLE Please next question Fratt

Poe Fratt

Yes.

is there Council. walk? of And going if it by follow-up -- to a If quick a date there deposit a that rezoned, that? the back will Tampa economics plan. deferred. what sort Hopefully, you not be Just They're they modified are the is with sale City development on the drop-dead on it's come approved a

Robert Tabb

Yes.

We the through place, the a the we're process and conference that what don't want I going and where is that a with with. significant in that you have contract Poe, tell comfortable transaction and negotiate we'll hearing this And have we marketable, see can call. we shakes we in contract feel out. But a party beyond to, interest to a have property property the go done. I get is that over and

Poe Fratt

Robert. Would though, at that date they Is clarify They City forfeit the but about couldn't Can that to And address deposit a the contractual have just do talking buyer there? do they down? the a there also, if XX drop-dead potentially walked? going they said Just the from -- Council to there issues a deposit April were standpoint. scheduling that? you they were they meeting, where

Mark Stauffer

-- up we typically they in have Again, do yes, -- there. do have this contracts, have Yes. fair money We do drop-dead typically dates that we one have on we to and it's say contract.

or get want and negotiating transaction termination this don't again, the focused publicly, but get transaction getting we working to through and date don't right as we an So the done buyer issues said, on now, Robert a a to but is extension, -- and if with agreed we're City closed. into there a

and is transaction property we very we said, Robert marketable, will it. done feel a on As very, get this

Poe Fratt

then could quarter. you if And the just Great. address fourth

of one, saw -- sequentially. revenues you second, the quarter with Marine shift third quarter? Can gave to quarter-over in the Can start million. top Concrete. happened was what address, the It you profitability the $XX You address On of had It like million the fourth just clarify just -- with quarter deferrals some because of sustainable disappointing. there, how down a yet fourth were is? or you above $XX happened all performance for you the into And that head from range seemed that, from Marine. what then, were EBITDA was of you the that

Mark Stauffer

of side. Well, One, on Marine Yes. the a couple things.

XX% the and XXXX, previously want we full XX% if year done we know, again, that. targeting consistently we've at we be As that margin, said to -- have you look to a that EBITDA

the we've do to somewhat were If XXXX, well. able Obviously, in can you that's Marine in. we outperform we are that I to that. you think we see want try the look as at said, to range also business that as And

the that's sustainable. this think has that of four respect we've segment, in again, that tremendous earlier. place. One, progress business team in our demonstrated objective, And last got that We've initiative is huge a been through couple great that With Concrete, to quarters. again, So again, a keep I spoke we've to focus us. ISG we made for about things. And in of our that

We make of continue part to XXXX. from first into perspective changes the kind ISG the of

a at the do progressed, new projects in quarter we in as start-ups the think the timing you Again, than we the XXXX. So and beginning up. projects. again, really X substantially won Again, we were respect of later and quarter we're pickup of way, to in had drove made fourth -- in substantial that this but the we work. of third throughout as but very end if back than we at -- With the QX, book-to-bill quarter start-up look with of -- go confident segment. to And the of progress QX, -- again, the and remarks, specifically into of what it was less in we've got say mentioned team it's that in it that But don't that. of our that in has our his the out the in to that fourth quarter, that as report fair those clearly, kind as the the quarter we as I the quarter of improved started work work that performance work. started as a lot Obviously, division Robert

do. what good really segment. We made in Again, about progress on that's went that we the have to still So work we've there. feel

before, We're that made team And in high-single-digits again, quite not business. on to happen. that we've margins yet, said big make we're there And for we're the that but we've focused happen. targeting right in we've As making got EBITDA progress getting there.

Poe Fratt

you EBITDA, mix of if if Marine, could sort give And Concrete then as idea and mid a would as us the to sort that in to ballpark. of you range us $XX million can far between an context, be helpful the maybe, Robert, high give that

Robert Tabb

Yes. No, is Poe, where we right are fluid. still now pretty

is take see continued here expect step Concrete, opportunities we we healthy good awards expect in here and QX go up bid And going in get -- for we the book-to-bill segment, have us have ratio we side. we that on Marine in backlog We Marine sit that to have the to work in the today through period you burn win. off. to to build have also and some as some they're front where their forward and a performance to to backlog starting a and of go Concrete the a but

starts that million where will a that range the clearer we margin become profile for I out, little us. $XX bit sit But play to target. today think a is mid high good As to

the in a earlier, into stated and we remarks number. that provide as we we're to As number further get targeted update going much the year,

Poe Fratt

on Robert. that, follow-up a Just

right? from let's estimate, at look excluding clarify, for EBITDA just you're -- If first all, that segment EBITDA -- the well, you Marine of just ERP to spending

Robert Tabb

not does EBITDA expenses. include Adjusted Yes. ERP

Poe Fratt

XXXX? of in down, $X.X $XX.X million give Or to be relative But will million. was able us the to be Marine is be Marine performance full-year. you Can or Concrete understanding for -- to too? Concrete XXXX/XXXX enhance Concrete EBITDA an was likely EBITDA XXXX you of the will down,

Mark Stauffer

on today, feel the beating in focused the in the the where -- and We're XXXX. be in in of think for this we're and is we this stated to start awards around think Again, uncertainty are of want targeted XX% We've we've respect great is, is the side. kind to did We've XX% out Concrete gotten got high-single-digits Marine the ranges there point with Poe. good what factoring Concrete. year I Marine. kind side the We look, We are the the we we EBITDA. of -- we in on ranges to that like where the range about COVID. opportunities on the Well,

on as consistently did how we performing we today. again, as But it and we'll is of we as we this XXXX. focused beating look, So out, update kind see go-forward. this we're in And said, it

Poe Fratt

us us factors, can -- And an also, Robert, looks just you how a capital other could you -- SG&A if than in XXXX of Sounds give an versus is SG&A controllable level just since what idea your is if could XXXX. good. little for of spending you more idea give just If then XXXX?

Robert Tabb

Yes.

to So we'll that. ebbs the the spend. with expenditures, say capital we with the it. starting we we'll every continue watch manage million, as to we with of to ERP that's year, business, $XX inclusive schedule. It and $XX guide million manage the CapEx, flows And But

far I'll focused of it SG&A, target standpoint. that X.X%, set adjusted meeting from about As We an and beating percentage. as talk the or on we're extremely

Poe Fratt

Great. help. Thanks your for

Mark Stauffer

Thanks, Poe.

Operator

& with Heffernan question next Gerry from is Co. Walthausen Our

Gerry Heffernan

Fran Good Mark, everybody. Rob, for morning thank you the call. having

Mark Stauffer

bet. You

Gerry Heffernan

kind is And it like to due that made focus lot Mark, the that the backlog people figured guess you to COVID slowdown people of the is the the have I that out. I I'd you bid on behind topic have a process think comment here. of understand in us, question. asked the

However, the look that's in $X.X that -- significantly than last at billion, out outstanding had any bid over years. three that of any put if quarter the number in you number for release there last you higher the the I have

you and more color a So to to there between a so may be Marine us you any number break-out if little periods. out historical as on is that and high different not and that us how out a hit that? little previous that of kind rate from could just breaks how tell to Also, bit. give sticks is that any as Concrete Can reason expect bit why

Mark Stauffer

Yes.

the a volume more work works of -- just the to lower. in think that's Concrete the one business the towards kind nature because it. we've is and Concrete, -- get weighted I'll order The lot business as of take it's that subcontractor a I pretty bid just of So bidding of rate break-out the last and is because how first. hit the we're bit nature little -- a --

rate little Our targeted bit is Concrete a in hit the lower business.

that it tend the that volume to bids there's we decision a a business, -- outstanding number before more one. longer. we number is little two, on And bid two typically So in bid duration are things, the

prior consistent. that's of So from quarters. -- in changed That's none

the With weighted Marine things it decision -- largely, side, to the of the and bidder cycle reads we as, low that other again, or the on the duration public you weighted. sector know There's apparent outstanding the you're is drives less That less On is a businesses. And the one getting longer driving the is not. are know, exactly Marine of projects Marine lot typically both things quicker, a work though then targeting of quoting whether number on then selectively the when with it's particularly side. the much you larger, of one you that's that again, is side work in bid bid that, it. certainty, open

it from focused work, we share. market Concrete So side, structural the about, structural if the about on talked our is which work think that is we're you expanding

the that So projects. of And those larger bid we're bidding therefore, there's that are more in work process.

the that So on to that contributes Marine that. side. Likewise,

and currently some evolved the pursuing we're projects as working group As more that and that larger of we're grown on, we've of well. increased projects the size in

overall that's to as the number impact So well. going outstanding

Gerry Heffernan

Okay.

we the understand out now? limiting those Marine here projects. win are the they of of -- I Are project? to targeting for of are because longer certain able larger, side to a idea I programs duration what Okay. ourselves mean right for -- desire the a as we're there, the demographic

Mark Stauffer

No.

our all pursuing I dive mean be projects. So just we're is group clear, pursuing very literally $XXX,XXX of projects. $XX,XXX, still levels to

a of all -- continue dollars or million million We the whether couple blanket sizes $XX projects, of to $XX it's million. or

for And work there out There's that's it the development out varies. there of work U.S. There's that's is out DOT the there. out large in bridge now. the there mix So port realm. Navy projects there. work is that right There's the

with We well. market improves there expect, as there the the again, Caribbean as large improvement some potential COVID, are of projects

work there's and not good again, or think it not at and is our -- that description I'll levels anything that for whether it's we sense small. there then If target. in and makes it we levels, we go And helps all mix a say exclusively something large excluding different We're what it's good a at achieve large projects a objectives, it project We're we don't. after. drive that all in way. of doesn't, So small. If us us it's for us it

Gerry Heffernan

high the In Robert, Okay. for the regards mid to guidance, you XXs to right. EBITDA All said -- adjusted EBITDA.

the correct? which cited due to gain assets, at comparability the sale year, on the You to came of current $XX million sale in -- issue

Robert Tabb

Yes, that's correct.

Gerry Heffernan

the assets. of $X had from of we And sale about Okay. million income

as guidance, be on asset sales? you're So zero the gain clear, just as far to assuming for

Robert Tabb

Well, in in out removed that $XX was million million of it. already EBITDA, $X.X QX of

that you normalize the out that back of $X a $X.X you number. good pretty for you if the $XX So will million it million give million, then

Gerry Heffernan

the we lost or you on sorry, $X have year, me. year-to-date have What -- we I'm total EBITDA? million -- -- the was in

Robert Tabb

No.

of assets. So of you had on $X sale gain the million

If Boyd you that off the that back the $XX million year-over-year number and of give good out then pretty from $X.X you comparison. Waymon the use you million to back incident, will a

Gerry Heffernan

Okay.

intents a number. organic number. kind EBITDA in that all and versus be seems, And backed flat the looking adjusted of bring basis purposes, I for -- I'd XXXX on out. Would correct? it an So EBITDA the you're normalized for it year XXXX I

Robert Tabb

Yes. Yes.

Mark Stauffer

the update. focused off again, XXXX. did things the from in again, -- COVID, on today then where stand year, And beating where out we of factoring progress in we From in around like as uncertainty based that we'll

Gerry Heffernan

Understood. Understood. Yes.

being in of a the of to real we to as here the Excluding as COVID make were is and far now. good just issue. any can business -- want comparison big a a -- tell an industry? infrastructure things I that and matter balanced So industry? as possibility about sure what the -- backlog see scenario appropriately how bill, Marine given us see the as I Can I still as be far we you it's it's that is Marine really, able now And an guess if have improving it was better picture there. just how understood you

Mark Stauffer

to still which that's there's That's case Caribbean. if the again, year to of drivers, look some to the lot a have opportunities is pent-up calls, we feel there's is classic lot and going those did COVID. that slid think I for altered think this some be think to lot not yes. been We'd think, of mean, a going we and that lot domestically ready private the to that of positive very in administration. be work. But they see year energy that both of dredging Again, the where Again, opportunities more my a changes be maybe getting in said and the still going produced right bust about. of amount of they'll energy with new that's there's we we We're as space make on just are has of Department But work. by driver the some back. maybe There's Well, of those at recurring I of the loose, I've even we domestically, long-term. There's energy the of continue an dynamics sector Again, work prior demand space the still and view, We the we needs across the Defense. think about to of there COVID. on producing that going that's infrastructure there. I chain tremendous think impacted work I like But there's well, see work. come supply And DOT a in think with driving DOT for the funding effective bill, again, public kind the in as In private improvements that There's long-term see recurring the to recreational without as infrastructure the sector, drivers that the we out going going in done a are a in Corps as is even a opportunities us. to is demand away. in in in, drive kind opportunities. out. their executing that's I a it. pace They still of -- and think for lot

Gerry Heffernan

down. And Great. could balance is Okay. if sheet. the very focus your jump a I over and second leverage for way change That's comfortable. to Certainly,

you formation guess the of has in us update bank we some generating Can to have, agreement as far status see can capital year. next is? as as allocation most that do again which, -- the or unfortunately, to see restrictions going balance you the how How the that what interested guys you you current sheet? still I'm that has cash do cannot be make. decisions You're I of

Robert Tabb

Yes.

our the of So it's relationship, restrictions that they here talking will those leverage a we're as as at where we look company. in And this year. we what into several overall as of looking good think within months. is supportive at and as A the covenant today, banking I the our make at more place. need than to to good well stand execute lot adequate compliance. We're next is ratio, relationship far looking it that needed. we alleviate banking for something adjustments in and you're a look But strategy we'll that, we'll be about, But

Mark Stauffer

the on generation. it on this cash and to to just we've last this to to improve been allocation, as then, your us little think real the out too, opens the are add strengthening at we a be. it a would even think respect I lot sheet that on that's flow options time. that hanging which But with place And Obviously, balance way we remarks and that, I said I Again, there, bit Gerry, of up is that we've good further. and touched focused time got us. capital transactions point, for look going estate to and a And

in or to as have options year So we deploying here. our go through expect the executing strategy think capital, otherwise lot I a of we

Gerry Heffernan

appreciate on that. restricts at that taken do. if the EBITDA, to care as to it's it's see should care in point getting to of soon and/or verge numbers, just better. inability a it, A I very seems shares, when be sticking valuation. of a the biggest even times of. good things particularly buying like the to out be possible EBITDA, that is that be seems you X call taken my I trading company very which, at investment low Well, times to Mark, quality there really you're X be opinion, repurchase round me, something dividends credit agreement as Having buybacks, guess I

Mark Stauffer

you. Yes, hear yes. I

Gerry Heffernan

Hey, today. for much Okay. Good going very time forward. you luck the thank

Mark Stauffer

Thanks, Gerry.

Operator

This would conclude to turn to over I management the our does closing back like conference remarks. for session. question-and-answer

Fran Okoniewski

quarter to for everyone, forward you We QX earnings conference April again for fourth you. joining talking earnings look our Thank our results. late call. Thank you, with in

Operator

you. Thank conference. This does conclude today's

time and disconnect at thank participation. you for You this lines may your your

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