- Earnings call transcript Q3 2022

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Operator

Thank you for holding, and welcome everyone to the Orion Group Holdings Third Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you. the to turn President, Okoniewski, now Relations. Investor will call Francis over Vice I Mr. ahead. go please Okoniewski,

Francis Okoniewski

Thank good conference Jack, Holdings you, and third Orion welcome quarter Group to XXXX earnings call webcast. morning, and everyone, and

today Executive and Chief Chief Financial me President President Executive Officer; are Group Scott Orion Joining Holdings Boone, and Officer. Vice Thanisch, and Travis

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

up open then We for call will the questions.

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

Travis Boone

the of be helping Good couple He for did joining. a to and setting you past to happy the today the challenges. and through them. the up to have very team success. this have so, and I who without We a thanks people business leading our wouldn't year Orion. all seat. business transition this job the lot to and Scott leading me for I'm or morning. great working kept first committed talking the Thanks of over uncertainty remain make this Also to for be for I'm at time for Austin of past Thank you for into endured from quarters a hard excited role.

and revenue. with suited address and as refocus and industry and seen construction last to teenager strong the in I'm this and business potential, we ground. I the talking We've build We've our here multiple my been weeks at to order we've have coming spent billions project on foundation future. thousands because business next years. We've employees leading listening and entire the the company start, well the for and healthy in and life. been can today. all and From beyond. working analysts. We the extraordinary are the our has a is challenges a uniquely to in six positioned so been to the investors also I've Scott build my I to a much market my came business strategy sites. and our and the business learning organically of opportunities to soaking we dad have and people, a that a with grow company engineering to build been year as more great a for and most be the robust of offices than in prepared in teams in

the expand into. from comes the have business in markets exists this that in we confidence strong base that will Our and

We observations winning have executing high and lead that My our an improvements have operational results. successful and end on will we been strong we're more outcomes. know markets predictable will winning in deliver and continue quality we to it. environment We're work that can of

And we have business. We loyal expand work to good have who very tremendous people opportunities day. and are every our doing

for areas we will our of and our working Some processes be on systems tools. improvement,

targeted and already will looking opportunities ways continue higher delivery grow rigor reduce overhead our we to at identified into bring We're And on We some business. focusing in to costs, to lastly, in our burden. and bidding improve both project investments have margins. and discipline and the with have

transform team have business. We to qualified this a

get term. time it to We take This aren't it is short going some looking at right. to

are and be building will for successful haul. year-in year-out the long something that We

for this a the our aggressively to for We have making been to stronger Thanisch, necessary Officer, working with achieve turn quarter. and our I'll Chief our returns, success Financial to business Scott investments business. higher over toward results the discuss

Scott Thanisch

Travis. Thanks,

Travis with that finance years deeply of with been work I'd my company, organizations weeks a discipline role engaged share this and functions have leadership and of to Orion Chief operations. the potential view value operationally and of I'm and here am six to role, industry. same at turning board. Orion this the Texas XX to as working on been Travis, operations is with the rigor horizon. finance achieve focused the from our apply that the finance my impressions services the group my Travis to and team, prepared Officer that myself Throughout first professional, commercial professionals like I because weeks to I I hand-in-hand passion as getting transport Before recognize to nearly introduce and results, transformational to the financial with a company see have served encouraged joined I've services talented give a a like company. we and this the opportunities effectively results. Financial tremendous and Having I I I'm the on a in past finance capture know few that have a for capability the to to and partner finance construction I the operations Over experience of fortunate in

in teams our been career, crucial and organization to Orion finance ability timely excites create operations. performing strategic that financial a of to that a finance finance opportunity can is data is thing business leveraging that day-to-day operational to Another to Throughout my be our leaders. Travis teams I dynamic believe Orion's business and performance results. transform my passion in a to environment. critical data by wealth operational has business moves data transform to intelligence, at partner, and me World the Orion business high generates to insight. making helped the turn has provide class intelligence business into

our drive our be Here people, retooling at will focused to systems and for our developing our on Orion, processes, aligning value I business.

can about past we Over from to many about team our where Travis customers, improve also stakeholders a areas financing great and business. as partners, of our meet I heard few optimism investors traveled we've heard the weeks our of deal have and members, we've and

team one annual awards. was TAS in the safety to Saturday barbecue and most me, deliver and Hearing of with passion our the frontline Dallas of have the our years, customers. our of company these high safe, for a team ability work impactful our whom on For brought members, for XX commitment recent quality been our interactions to join opportunity of really the home over some

the the right attitude and have We capabilities. right

results. planning, delivering be excellent will execution our focus on Our managing and improving consistent

million marine of in quarter unapproved and change of impact Now, turning previous in Revenues higher year-over-year the quarter in periods. The orders the contribution XXXX year. to XXXX, driven compared and this volume claims in of performed related $XXX quarter primarily our third and the second to to increase for our were segment million million $XXX the awarded projects $XXX the quarter large were quarter. that fourth of of in the concrete by work was

result quarter Third $X.X increase discretionary the quarter, profit and compared to project the compared unapproved claims prior activity dredging increased million in expense to the prior gross of period. the was in change year. and recognized year the orders was lower bonus $XX.X This million

up is second the XXXX down XXXX. XX.X as year-to-date, quarter Third XX% year-to-date million of to profit was gross X.X% compared gross quarter. profit And to compared

in third As quarter, X.X% revenues, profit quarter's with in prior margin gross period gross was the up X.X% margin. from a and the line the second of percentage in year

the quarter, margin and EBITDA X XXX to XX%. adjusted loss of EBITDA revenues the of our segments. equating segment and segment million XX Turning had and adjusted had third In adjusted revenues EBITDA almost of margin negative marine million an the of quarter to And an $XX adjusted of million third million, EBITDA concrete of X.X%.

markets. the margins our we than Central third in our than quarter, significantly at on concrete other closing XX% achieve This less focus the continued region of out lower quarter, in jobs contributed revenue During we in Texas. concrete segment but

complete And per compared diluted in million, or quarter quarter in We remaining $XX.X of expect income million, the for of year quarter. revenues, were fourth $X.XX net X.X% third most for the of during to or period. $XX.X to X.X the expenses backlog Texas third XX.X% or earnings share. Central was prior the million the SG&A revenues,

earnings million million Excluding was income items, nonrecurring per adjusted $X.XX $X.X share. or net diluted $X.X of

prior adjusted EBITDA of margin margin EBITDA This quarter million $X.X of of the quarter. for and million adjusted and X.X% EBITDA was an X.X%. $X.X adjusted an to Third adjusted in million, EBITDA year compares loss the second adjusted representing of $X.X EBITDA

were segment. metrics. bidding of resulted our for a $XXX on opportunities million, end the quarter of prior In concrete new end bill and Of of backlog, At win in period. $X.X book from $XXX to on This the the company third of down worth XXX bid XXX quarter. $XXX was work. backlog September, quarter, at was successful the the ratio in million million rate XX.X% a year X.X to and of and million Turning the the segment end billion of marine in the the million

million months. or XX We will of burn backlog the the during ending XXX quarter next XX%

apparent In the to end marine addition the has to is new to segment. subsequent segment the related for to of of the backlog, awarded bidder. company $XX Of related is this, the this third either the is million concrete million while which been there's successful work or million quarter, $XX that $X

is discipline win not jobs to merely our We results. deliver bidding increased bidder. price, ability yielding the good cost at low As want timely our basis Travis by of mentioned, quality, being on projects the to a

in wins will have segments we recent this higher to discipline. And we focus are opportunities benefiting from where both on Our margin potential. those job continue

outstanding agreement agreement. under The the company compliance credit under our ended of balance cash, million almost the available ratio the to of with net the debt at sheet. covenants. X.XXx Moving And of our end in in million as credit and $XX.X a leverage $X.X is quarter revolver. measured we $XX of adjusted The had million with quarter, company resulting capacity EBITDA of our

With the We that, for potential turn replacement partners as for have closing and or initiated the we of facility. extension discussions to evaluate financing Travis his remarks. options back existing our I call will with credit current

Travis Boone

few Scott. to like are There about items which an provide a update. I'd Thanks,

we As markets. Houston commented, concrete are our our refocus enable to Scott in exit and which Texas strategy Central business continuing perform Dallas our better in will

to dredge year for will major working the new This was so. next of couple over operational Lavaca or the Our be a in us weeks. and investment past

of sale one for a will properties, which Port Lavaca our have in agreement purchase close We signed December. leaseback of

property to our continuing West to on make on further assets of our are to We're ways monetize other also Houston debt. East at We with interested channel. the the parties some progress looking Jones reduce shipping

portfolio quarter and a strategy developing Scott fourth more better and As will safeguard for be business. and our facilitate to to next year, attention deliver this our team the business our returns help we growth, planning turn diversify delivering for to efficiently I and

tools like to and to as for with of inflationary customers, Ian BD the recession focusing I'd assist online. streamlining and finally, Infrastructure with best our is and issues and longstanding margins, project Hurricane strong on capitalize the recovery evaluating continuing concerns. We identifying opportunities say IIJA on which systems the bid building it Act proceeds chain and comes to dollars, supply will client contingency thank And plans you decisions base, overhead delivery, our vendors. suppliers be expanding on use strong our reporting, to efficiencies, our discipline make to

of my In support and business Your we joining like have this success. crucial I'd our excitement a that our you with closing, as the about Orion reach relationship team our to and are to leading huge to reiterate company. potential

We ahead have work of a hard us. lot of

We confident turn potential have and in some maximize to make, over very that do we it back we we I'm investments have. to things the for operator But the better. to questions. have I'll our ability to your need

Operator

Noble Certainly. Instructions]. with Capital, open. [Operator Joe line Gomes your is

Joe Gomes

Congratulations the on Scott. and Travis quarter. morning, Good

Travis Boone

Thanks.

Scott Thanisch

Joe. Thanks,

Joe Gomes

those maybe revenues had X.X could and about to more unapproved you So disposal that one, color on you press couple follow a color release a maybe of on could on claims the in first more how the have was of kind give much the And from or impact orders. of million gross little wondering a mentioned a kind maybe of you on question, from? as impact little just quarter? also about give us profit if and assets you came times that what detail a assets, change I gain in

Travis Boone

Sure.

of to not In orders have previous to of some change were some on some customer related on we projects workings comment of in that costs They were claims large details going recognized contracts, terms were But of the we're and side. these that marine quarters. the our those.

the of claims through those So and margin are flowing quarter. essentially these the the those on from impact claims

gain those the not utilized recognized couple were sold that a a is the our was and turn ringer spud which And us cash. a assets. in operations. barge, those great other opportunity the that on a I of in for One into sale we terms to quarter, believe, being were it crane, In assets assets was of was

Joe Gomes

concrete segment, was quarter it had wasn't between Thank segment. talked not at profitability. segment could we June and how guys an able it loss. the expectations change again the income know for profitable turned in about I in you looking to profitable. and release, kind call level I on wondering X.X segment Okay. second about million profitability the concrete the the operating the that. you quarter, reported And concrete a weren't on show was press quarter the what rest see Instead, charge Austin of last quarter but And the that then that of in were in third

Travis Boone

Yes.

we So continued of Joe, profitably in and of we get as as can. concrete drag projects a up trying to part our those I to wrap of on some that's continued think that We're business on, that kind our But can, to pertains Central getting be out Texas quickly as completed we as we've market. work as said, to that business.

wrapping that general the or that so I to And margins some say we also that that's contributor year back now. I the wrapped main in that. would projects well. get So the -- there's they that still as up, up that to we're we we the where have had at would at while a trying guidelines we're bid weren't those last say quite

I think continued work trying out of So previous here. pipeline from just to that drag it's we're the get

Scott Thanisch

we that that the people associated business, to Yes. costs the are with And -- exit continue there as our equipment and efforts are

Travis Boone

business. The Central Texas

Scott Thanisch

other to need We'll reallocate to to costs. of find those Texas our Central right. business, way parts The or business some other shed

exit. So assets more can our impact we those a profitable plans reallocate to as much use. are that essentially to where be will continuing continue But we

Joe Gomes

I to had in through start at obviously, of the Ian we or of the third quarter Florida. quarter. a in Hurricane the guys started were scheduled number the you know end projects fourth had come the And Okay. quarter,

positively you maybe level give Just the had what either on or your high if could us negatively? hurricane detail of impact of kind business,

Travis Boone

So Tampa have going an to of relatively say, And to through. hit the it Fort storm. in and but Unfortunately nor Myers pretty didn't ton hurricane for were Tampa area, impacts would for going during the and back it went we I were quite hit neither the bit braced unimpacted didn't were for the on abrupt work work was, we expected. prepared had braced took it negative so where a on. the we and Myers, We after area the quick for a as turn storm Fort positive we're

looking are recovery We to years. months in and obviously with Ian Hurricane the assist coming probably

assisting the there. we in So a are for preparing of down lot work doing recovery

Scott Thanisch

private out and governmental conversations. that number a of with coming we we've developments there's been And those positive that in see of organizations organizations contact

Joe Gomes

I And step one call early month, guys -- And queue. purchase, you in I'm I'll in but and guys back six me, Kiewit more days with a familiar it's are I again [indiscernible] it then sure ago. have Okay. tenure, for weeks let's your if may, you know

Just impacting for do environment that you see wondering how you the competitive guys?

Travis Boone

-- We're not will not partner what well. still is a us well of as evaluating competition we're the in as or Kiewit well, be. We're still impacts kind is a cases, evaluating whether that. teaming some as [indiscernible] and as competitor Obviously, to

we've not future. it. to We very how So foreseeable that statements talking see don't the they there's operate been any changing anytime I for public about drastic been on know change planning is [indiscernible] Kiewit soon.

this major this to anticipating at anything point, at impacts point. not So

Joe Gomes

along. Thanks, to guys. questions. pass the Appreciate the answers I'll it

Travis Boone

Joe. Thanks,

Operator

with line B. open. Riley, Rygiel Alex your is

Min Cho

now on forward focusing thoughts the helpful? longer going get just you on new But industries, Hi. of contracts, leadership Travis two different forward. Good or about your Welcome, you discipline in the and are I in turning on business new know talked bidding. thoughts more any This general just just right would concrete growing to maybe be your I Min thoughts Texas in wanted morning. and business and Alex. to general your there types Scott. geographies is Travis, about Cho Look this for term. -- thinking

Travis Boone

Sure.

have First say business. lot a let's of concrete of in our all, we confidence

numerous have. that we think Going opportunities forward, I there's

as Houston the go, markets and we far As primarily to on will Dallas. focus continue

We sector for that sector experience, locations is I'll we the us us. We've ready in more historically it if will location, for place say historically other will be in some on developer-driven work got ask think already. public another to supplement great as to grow other there's on to help not that work have with opportunistic come also we comes that projects. help a to we they have us teaming heavy along public private sense opportunities we in that that sector we're if business opportunity private go. worked My and big business, makes in anticipate that start into expanding some I worked. locations always background And in do working a business that that that's partners

So additional think helping us opportunity and there's drive I that an business direction. great forward there look in to for

Min Cho

And this of for staying Okay. is then kind business. concrete with Scott, the

and through of we worse quarter have be of it the suggesting concrete fourth quarter these would these that legacy could for projects guidance margins problem sequential be As get the as helpful? should lower projects you or some improvement up? that margins, some see fourth are Any projects the wrap

Scott Thanisch

Yes, I question. appreciate the

in higher remarks, that's his our help. at work me change that to the it's and start costs on which in the That been will we I bring some that think looking across the to probably what expectations margins newer in roll in forward too as before. board. for segment. you've there's quarter includes ways I can do heard Travis at lower that of also, a early fourth bid overhead think from our as we significant for concrete say the mentioned We're

of reallocate that's And I to going of sure can. expenses, positive those earlier be improve margins the that key of to that tailwinds as that quickly So that are making be we us. going our assets shed mentioned the we as for to business thing we course, execution help

Min Cho

fourth any the them, I'm bit -- claims, in just quarter then claim questions without could the the And be right. are mean quarter? settlements And you softer All a overall. assuming more expecting also prior in fourth about the margins I little

Travis Boone

in have fourth the No, I for any don't quarter. specific claims expectations

course, time. always and business our Of it a of any it's arise part at can

sure We with continue as bidding to focused in and concrete that at work making margins. executing just we're we're very customers. And the our right on the business,

just think flow So those to orders in the with forward. are performance of the Change out business. go the claims, are I of kind driving and factors be going that going and those our

Min Cho

update increased just you talked increased give this how or headwinds headwinds can about on you're supply And been the some mitigate steel Can infrastructure going the with kind you headwinds. supply there of chain. you've the an projects coming rebar, Okay. concrete, some chain forward? Obviously, on have is and situation seeing what if where of forward, are,

Travis Boone

everyone last we guess I has new. any fleet in because concerns days any that. do than and instances supply I'll our about in the of globally fresh specific have our few don't the say us across specifically some diesel we kind a things don't that's shortages something other That's currently. lot fuel -- like general chain of of and have company. burn and talk There's about And that impacting it's been concerning, issues, we

on So moment. the that's one the at that's our probably mind freshest

talked them concerns. the have than at not in looking of lot concerns anything ways and alleviate partners about these other vendors of a supporting are haven't to chain past. kind that of find chain not and -- But helping issues, with new we about ways teaming the there's supply globally our or to general some We supply people the we're of

Scott Thanisch

contracts. Another we everybody thing of focused our is escalation have on making going to that appropriate in we're clauses obviously that be like sure all

discussions So of important part customers. our that's future with and an existing

Min Cho

you Can any on just give Okay. mentioned bit West it's how progressing? that, timing I And us about talk you and then the a East little just property. about think

Travis Boone

been point. timing, uncertain on here quarter-in in things some in hopeful in -- we make anybody at parties speculation we're with that As good We're think time I I some pure last that far guys with be something this interested for and few that. is But the have progress property selling hearing the you quarter-out, I made we like as progress this and on. recession think that have for it'd continue it is a recent months. to know but

have recession. we hopeful at too that move But probably here forward even a time some coming in that we in more. from much we'll interest parties a won't we're that be moving Fortunately, on But some towards months. be position would to of comment something the

Scott Thanisch

we They And their as diligence We're process answering as actively prioritizing we engaged. due in can. are conduct much questions. that

Min Cho

That's great. good Okay, you. gentlemen. it me. luck, for And Thank

Travis Boone

Thanks.

Scott Thanisch

Thanks.

Operator

[Operator Instructions]. Julio Romero with Sidoti & Company, your line is open.

Julio Romero

Thanks. Hi. and Good Scott morning, Travis, Fran.

Travis Boone

Julio. Hi,

Scott Thanisch

Hi, Julio.

Julio Romero

like thoughts by strategy. I'd start to digging into on more your

You your better items remarks, process on and discipline in delivery. identified some bidding prepared systems,

speak could operational and you you If if needs rank us change of a order sorts? could an just more Orion give what to to from perspective,

Travis Boone

Yes, you've the for quarters Austin bidding. last about couple discipline of heard from

going be to we're focus not and on sure that we've on capturing I been continuing we're something appropriate to quality, think the that work. to that's margins, quantity. We're heavily make at focusing

will forward. continue And so going that

part it should overhead that's we company costs costs running like and as to of things and delivering sure business of evaluating that, the perspective our efficiently doing from And we're can. a and be as think I we're business. make every profitably as how

to be systems that for tools, coming ways to find weeks heavily and that business we'll and on need our projects and of so, been year more internal some how or in And over we as next but something start efficiently. that's far then the and systems. finished at time it, processes, get company So things good some our kind got some on months to in working we here do the a have pretty up our we do looking as head processes on

fully getting so And those on we're executed. working

Scott Thanisch

for be execute to that well. our going the would that's I ability add us things And to critical is success a factor of one

And how project can controls, I which to our deliver in so our that a in into and way customers. manage deeply the something way can improve really that we we Travis and projects our are process that delight see digging projects, and that's

Julio Romero

Got you. helpful. it. That's Thank very

of certainty going the greater taking How public versus I increasing public forward. mix bid of talked the side, On for projects on do lower side? of the downside concrete weigh assume public the sector you margins you sector work on the potentially the about funding benefit more

Travis Boone

there's aspects think of I a Yes, it, couple of Julio.

there's that continue more to think recession only that. in on tend public be constrained forward they're like developers a not little to do, when through of able I some to and things sector times what of tends

kind without of will with ride us sector to help help us us in not of order the it's will work, it out of addition a in section our again, think storm, so business grow economy. of that in and concrete help much in profitable additionally, some to the speak, will business private I to And our lieu give it kind markets. another way, -- distracting too So from it's core

Julio Romero

on the have XXXX quarter in And concrete percentage like, what got the prior looked Texas Okay, quarter up mentioned you or maybe it. Central either made happen to XX% in of the sales. general? that you Would

Travis Boone

going on less than like don't think but the XX%. is than revenue you to of concrete we get handy, Less of continue the to that can certainly than it's have on current It's that number the the that. we it I But the have And process. I is -- emphasis to X% quarter, be remaining XX% back less backlog. business

decline. then more So been it push will markets continue to in where successful. And we'll forward we've

Julio Romero

it less what is up you're saying? than So year, last XX% made

Travis Boone

But know give there. can with next me. the let don't we detail more on you I'll No, handy you I number quarter, the have

Julio Romero

the sales, just have no, on could it, use all And one you the on might asset last touched if but maybe just reiterate then you maybe good. of just, is expected Okay, funds there?

Travis Boone

to balances. our we reduce asset those used revolver proceeds from Yes, sales the

strategy might some now it's the general sitting corporate revolver as time availability uses sales. to over us so in business And delever these of available is asset But really to and dictate. our through

our opportunities, sheet on So additional that's as balance in with think reflected way. to we be that proceed I going

Julio Romero

very and color, Appreciate the taking much thanks questions. for the

Travis Boone

You bet.

Operator

Storms Stonegate, is your line with Dave open.

Dave Storms

Good taking morning, for gentlemen. Thank you my call.

Just as management, Scott. Travis for a and [indiscernible] question

greets, the your out your seeing, low it's but meet you're you're have as background of going on for anything first XXX your and background quality industry. construction Is days? improve to you guys doing that You fruit given in hanging kind there in just your

Travis Boone

Dave. Thanks,

I say think haven't respect we're is projects. And practices one be of in of how best like to and is I'll acquisitions. we built the of company in, numerous been things that us a seen integrated I've deliver the sharing as our that we I would as

a doing multiple something of or doing great of people there that's have between in And more the been on that And going forward. groups. a sharing lot work We I we'll processes hasn't different of think lot great focusing resources be markets.

think that's comes the Scott don't to something I if mind. that to add to I first that. thing know has

Scott Thanisch

agree think I where there some real seen way some with able mentioned that recognize renegotiations opportunities some hanging benefits be I've maybe And for I expenses, we've pretty of just something Travis locations some overhead Travis. the to things in our And consolidate earlier, that's business. that that with low fruit would vendors, as in Yes, rapid is to that. a told

great One can and of I just team, with see my see a I spending ways has because how favorite is it to its we do business IT in spend session meetings which it's been of invoice opportunity that the review the better. our the money week

there and out get and opportunities, quickly. low there going we're them So are fruit execute hanging to

Dave Storms

That's you. perfect. Thank

Travis Boone

thing, in if that one more -- regard I okay. have And that's

Dave Storms

absolutely. Yes,

Travis Boone

I is kind how the of would we hard we're pretty at that procure materials. things say one of looking

opportunities rebar some buying for compound, good think have we or a think of opportunities be, by I for we here done. procured might it have have we by project-by-project, get some economies of buying whatever us bulk some think, I more historically, instead efficiencies in historically, of or materials than like curing where concrete And project-by-project it's example, scale basis. we whether there's could, to

Scott Thanisch

And as well. some delivery help about a that operations derisk to would when time concerned of supply also we're in our chain

Dave Storms

Perfect. Thank you.

fair is So would growth it that external of be this opportunity to a lot organic point? say at for more than

Travis Boone

absolutely. Yes,

As of potential the think we focus business, is on organic which growth we tremendous.

Dave Storms

Scott, a you. for And might Perfect. be you. little more Thank then, this

we we quarter, Hurricane coming infrastructure the kind it? look? As we the Ian we already to timing expectation seeing that? do the that potential bids in are fourth Are and on think an about would coming up, through curve How bill for have of going seeing bell start or more that for

Scott Thanisch

there a are No. of timing. going hurricane to than more strong that don't a needed be urgently elements others. have are we Unfortunately, view on lot I of think recovery Certainly,

potential Travis I an those we're that quicker and that to of and those customers think in earlier, others. realize conversations As need there's some services engaged opportunity I mentioned with than

Act, a On tremendous just amount the spent. Infrastructure some to that's It's take as is to be that long of to be there tail needs time. money going going a

extends out into that's our period the that medium long-term business to think time of I of a more lift over fairly that So going range. to a of be

value So going appropriately. able for to to prioritize they're be of execute need long kind business, our deliver both And to short and term. just we and

Dave Storms

asset Are don't that for if you you your more spot? assets, ratio leverage get point located dispositions, inclined one you How are down revolver a thinking and end geographies about about you rid you me, your of want the And to perfect. assets thinking certain get a of it That's are more from mind. certain want more When there? thinking you to you from talk goal rid where are that of to thinking of? get or of it you're in certain to from your you

Scott Thanisch

Yes.

of debt, we're terms our now. highly in So right I think levered that don't existing

the think of it more We use our comfortable have debt. of assets. I best a But is level about making

our and be use that no may that we able utilization to to And across both used drive be assets longer up have have segments, items share things for might higher. we so And us. where better free of

Central have be we things where, also don't that. may assets we Texas as out We there we do just need as the that continue business, to of moving some mentioned,

asset focused drive to to is right it our of going the than getting sheet. growth company forward to it's be point base more particular balance the on on the a So hit leverage

Dave Storms

very That's perfect. much. Thank you

Travis Boone

You bet.

Operator

line Alliance with Fratt Partners, Poe Global is open. your

Poe Fratt

Good morning, Scott. Travis. Good Fran. Good Great. morning, morning,

impact impact couple during a value standpoint number Can quarter. an number mind. of you had? you of from kind actual ballpark you the quick what a hesitant wouldn't ones, just dollar know change us seem order if that Just for give to a I the that or offer

Scott Thanisch

that was with we What around work customers from working earnings we're to the in I we'll you that And on. can tell time-to-time a revenue and work our changes significant on as our quarter. have happen that contribution is our it

other got. as as to any questions you. So that's certainly about happy much you've I But can answer give

Poe Fratt

Yes, okay.

when -- days looking So so. at XXX had you're or you

improvements You've you business down. just going integral some ERP timing was imply standpoint bidding to identified give would that Does hold you're standpoint But noticed on you cost concrete down us far I is of of put different us emphasis an squeezing ballpark ERP maybe what as process cost from at the a the project seem of see there. parts to a of either -- potentially And improve either can be the then there? is from it spending that sort as the costs a less squeeze integrating looking there. Can you think just the number that you what give by? costs? idea you're to or It to the can

Scott Thanisch

Yes.

wrong. might to systems where going spending long-term there we kind hazard kind contracts. be priorities what may the we and would figuring profitably step as better cost how those and on are. of part certainly are and of almost to our to of the lot that more or decisions certainly I that but where really high guess the data terms figure be the be, savings that's about our ERP quantifying a be we're don't there, going be, out drive but leverage money important and low. out in think an business next of see be our would know to potential to of And a potential in probably achieve So And there's I Because if what I I could execute plans

continue some would there. that to I so And expect we'll investment see

focused what the maybe that I I can on small quickly. quick that going be relatively think and business are and a that through to we benefit drive Travis investments initially get for some can where wins are

drive ideas That of the talked kind to short belts. have So, metered where think we getting I time the a under to few hanging want fruit business. ERP start benefit in deliver really can we've that will that things low and we about, wins a spending be improvements our cost other to and are to able

of gets we all for of kind then that forward carries can improve. winning and that team experience into looking that opportunities the performance kinds So of

Travis Boone

at just be those six the able us weeks Poe, the next think we've so focusing what identifying or more all and around specifically will so to for is here been be we've what savings And been arms in business might right be here. step on achieved. getting our I

here we time got positioned save. on better have speculate much here, give answers a months to be of a few some more you a go we learned better, can think we probably to short we'll been before in how we've but we've So save. But how amount can we much direct on the we've more lot we could in

Poe Fratt

imply the You just seem you've further down that been road on to that.

look of both So if from Achilles -- is or need sort you one discipline. heels in you of the there Is been improvement think have standpoint? a at the the business, bidding one bidding it that

Travis Boone

Poe. already significantly, have both think I improved

that while to some instituted be has and been will continue think Austin back guidance I a followed followed.

our be improvements we much the both the of disciplined couple bid what quarters and focusing going of we're past continue work. even finding I to on ways that So we quality how more work pursue, about how We'll think made over pursue, on that after. we have the businesses

Poe Fratt

you for targets this would been from sort profitable concrete then Can but of detail, operating give or you us the that you And both I'm quarter, an an standpoint have Central during either margin EBITDA have the standpoint? idea for an businesses? have not of Texas, sure

Travis Boone

let the first Scott part second part. answer and answer I'll the

the advantage, foolish I would us about and of competitive from start it margins that. too much think I think be of perspective to advertising things like

I'll projects on confident margins. healthy say with that back hold we're we're -- it's I'll that. So bidding

Scott Thanisch

the in drag of concrete And that profitable on of the yes, drag, our been And business have business absence in that's would exit segment. in and a quarter. Texas, the the terms a Central that Yes. of been

Poe Fratt

the an of there? scope that Can was then the sort then of integral about targeted leaseback? want outright five in X Port sale from at Did that that's Lavaca we've your or a what's a your in that targeted for six the Lavaca change Port proceeds And considering closing all? And range. to sale us flavor last, that sort of it transaction Great, also, to, just on release, that? history on give say million you confidence go And did I -- recollection quarters. you from the press the helpful. put were My hearing been

Travis Boone

do were business. the sale know property I'm need dredge it not our on I is entirely to is property. What We sure previous leaseback. plans what that the do a operate

of we as So property. that to work on will -- continue off a leaseback

it, it's million. more far I as of as been As scale the know as always has than X far

quite So to I a not frankly, talked sure there's got to think historically And confident on add want don't price I'm honestly been that. we're do I Scott, you that more what it. but has about good we know,

Scott Thanisch

good it's good timely a in have deal that It's price. got we that a execute I confidence We think you for I us. said. transaction that good a as a way. think we of that can

those our is execute. then opportunities focus finding other So can that and that go done, getting that's we really

Travis Boone

agreement December this have in do that year. we a And of says purchase signed we'll close

Poe Fratt

there East it that or the would -- it has assumption Okay, target Jones, in the say as just had that you as XXs proceeds. was great. the is to to too pretty mid still And then far Is on target working restart West a process? early generate because much reasonable

Travis Boone

looking terms marketing that that partner We're of we're transaction. CBRE at in property of with doing our what on the

response make other If of -- move determine with, environment get don't value the interested a our engaged on with shift as that kind we so go in position know longer and in how I we're that are transaction currently engaged going parties forward current with negotiation And that it and trying right would, buyer we're of were the kind we that than and point. at than focused that we're to and just the any in proceed reevaluate we of them. should economic hand that, to they course, we now, the marketplace to in closed. have then to But

Poe Fratt

in. one last can it I if one squeeze just And Great.

third concrete down the quarter. break concrete light think concern the and far of as I can the X concrete? million a as the or for way on so bids, XX levels to bid billion, Any on side, seems said you marine X.X side into outstanding marine successful between successful Your side, bids date, you far then the a And that million little there? cause

Travis Boone

to I that is wins about bid being our fewer in we're think you're margin. in is that to intrinsically there seeing bid putting It lead going margin there. what when minimum more we're discipline disciplined

quality doing and work with and margin. working on a we moving relationships partners where healthy is with focusing we're So that forward have great

Scott Thanisch

segments, of and activity concrete. looks between maybe And outstanding as that of bid outstanding we tilted is thirds outstanding that our that report our the always concrete, bids mix that But how significantly. quarter, mix bids is the ongoing. expect of would in could two I towards more it's our total of terms the bit, change pretty bid next And

progress going forward. current towards shift is the So we'll see but things how concrete,

Poe Fratt

Great.

Travis Boone

about talking more one thing Sorry, just we're I'll add since bids.

largest submitting in currently. We process are of concrete the history our in marine and bids the both in

Poe Fratt

The the largest sort bids of --? that Can quantify on ever. you

Travis Boone

want aggressively We're projects and aggressive put did being out great pursuing there. are we're are we're them. and that going after us. I can't fit these them. that Poe. bids, But talk good to finding And fits ongoing about what for projects, They're about No. both I

So talk further to not I it. about prefer

Scott Thanisch

have to good Hope news.

Travis Boone

about news. tell good we Later, you can

Poe Fratt

red sort a just are you bid bid? expect maybe Can up, And are meat of You you give process they the timeframe the situations wrap or out negotiated wrap when on dangled us to there. some to up? these bidding competitive or

Travis Boone

Let's say bid. competitive they're

months few a us take will them to of One for know.

there them. will And one negotiation little that. be sooner than be one other of a The on some may

Poe Fratt

you. Got

your tuned. Thanks your for Really stay time. help. So appreciate

Travis Boone

Poe. Thanks,

Operator

Investment Henry Instructions]. with David your Trust, Wright open. is [Operator line

David Wright

results. welcome consistent Scott, in and to to concise. Travis, try I'll talked Orion. about be morning, you deliver and remarks, strong Travis to Good your wanting

from perspective? your from now Just success year a briefly, what

Travis Boone

you to we a we're perspective, deliver would you what for do having goal calls my tell and what you delivering or me it to we is from my with From now, that's the exceed My is we're told success going year us and it's going time. or in and telling when expectations you these and for do quarter, we next start that what your focus. better, do every to

David Wright

And providing that forward guidance. then would correct? infer guidance, Is that

Travis Boone

on able rely tell the you that think about results, as to be consistent we we that things start to I future. the you'll build

David Wright

Great. you Scott, line. happy You more I you leaseback. the the you've just wonder, capital? about the company's working with renegotiating talked are sale Do need done capital?

So debt you feel capital? working are you then looking about just for How capital? do

Scott Thanisch

Yes.

grow to capital And ours. and if is a new So well is as ramp are important. up you as focus to manage grow projects business, opportunities Making structure capital, making require the we the sure it obviously, alluded right in investment of we've that going identify able that's some revenue. to Obviously, working got working important. is capital sure we you to,

our we to we how a what in going needs managing that implement as always want we're really and are improve our can as efficiency finance how a of we assets is our be be and a our focus team working better picture our forward business. effort resources strategy. management margins because to capital is just going and I would whole say considering about So the But think

David Wright

you you do presently? So working enough feel capital have

Travis Boone

think customers I present, like commitments At are able that our continue forward we to to that. our on move and to we'll deliver

David Wright

to Okay. I wanted ask quickly the about backlog.

be quality you is existing do going with out large Center. feel backlog the the with to backlog a to How the next margins? drag got You've of a And over the project Space respect year? the about

Travis Boone

a bit up. There backlog drag that existing is some will of a it wrap as we of be our

that this was to on guidance we bids instituted. one work prior of Some our

And be so those to work projects. continuing through we'll

-- little longer of as will of a it some earlier. on So bit mentioned projects a tail those we it, have

we that we've to start that we'll will some And So work more be have. the recently been margin the overcoming better through projects. then of those continuing work winning drags

David Wright

then lastly, XXXX on the budget? are completing And where you Okay.

Scott Thanisch

what developing to we delivering next do the actively what that, team business business, of needed looking had as Travis year are the so incur working with we investments Yes, do. cost expenses as as in at need what expect through the improvements. our And in for thinking can we're about numbers we're our and we mentioned,

in And right we insight And an inputs lot process the engaged we're the now. update so give a and that where it we're obviously that quarter, is in you and there's to we gives you down little headed. of next road can when back better into a more come hopefully, you

David Wright

Super. forward. Thank taking good and going my questions for you luck

Travis Boone

Thanks.

Scott Thanisch

Thanks.

Operator

Partners. with follow-up from Global Alliance a question have We Fratt Poe

Your line open. is

Poe Fratt

before. both Sorry, bids our projects far marine asked largest I side? memories awarded the the you on can been as concrete should that or the have and But have refresh as just this

Travis Boone

marine would digits, side. side, I I XXX -- think concrete on Yes, the think the And double on XX be it

Scott Thanisch

range million in concrete. XX

Poe Fratt

Thanks your Great. help. for

Operator

turn now back team over the closing the call will management I to remarks. for

Travis Boone

your Have and third our with to day. call. forward We our February speaking joining again you discuss in results. Thanks earnings a everyone conference to interest quarter in look great fourth year-end quarter for and

Operator

This concludes today's conference call. We thank you for your participation.

may disconnect. You now

Orion (ORN) 30 Oct 222022 Q3 Earnings call transcript