LMB - Earnings call transcript Q4 2019

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Operator

Greetings. And welcome to the Limbach Holdings Q4 Full Year 2019 Earnings Conference. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, today’s conference is being recorded.

pleasure your my Mr. now is to host, introduce It Equity Jeremy The Hellman of Group. you. Thank begin. Sir, you may

Jeremy Hellman

Thank and very you much, good morning, everyone.

Holdings Form The of fiscal call. providing the a statement an slide of Yesterday and Company website will be review XXXX. may Limbach the announced on presentation results The this presentation fourth Company to earnings in XXXX to afternoon, can presentation. refer and those the The quarter Today, filed the also its Investors ended current XX-K disclosure www.limbachinc.com. year the update reviewing for December XX, its this results section market Company at everyone X Company found be accompanying on encourages slide forward-looking conditions. the

turn of call Bacon, ahead, the the Jayme Brooks, Charlie. Charlie to Limbach Chief and I’ll Financial Please CEO Company’s over With Officer. go Holdings that,

Charlie Bacon

And Thank us. joining you, everyone, for Jeremy. and thanks good morning,

financial, sheet I current the addressing that in including operating investors, will related the later will issues and conditions, contractors have a market to vendors. We want to and number then ask of balance importance Company’s all XXXX stakeholders, be self the address results employees, to Jayme first partners, comment critical but call, on

shortage proud as dedication, experience here very the to challenges, More the industry, impact no past COVID-XX our There our triumphs accurately focus me all It’s over than our for Company. and describe onset economy, and made Limbach. of that weeks. an decisions, communities commitment passed hard humbling and these eight it’s of at employees has been weeks us began have been of since has our the difficult of to widely and the

middle for as company been stronger of a it has having since tested March. the today We’re been

and continues as get objectives. to the as lose environment priorities improves, hopefully objectives safe; sight of long-term cash; three I’d even their these executing applaud in in to the to our Stay employees we for enacted get the We critical immediate pandemic: future can work. response our pivot pursuing and evolve effort operating and the like to not strategic

commitment The other to of ingrained has for employees their commitment Company’s and in to Limbach been decades. each safety culture deeply our

deviate personal to equipment, commitment. team’s modify ability will workplace protection been The not this social has distribute otherwise distancing react and to source that from accommodate impressive. We new reality to and

our recovered We or among have ranks, only All are we’re virus. colleagues of employees limited direct are number a of grateful exposure fully to recovering course aware with of the that afflicted well.

by which our perspective also So, with tried we’ve to conditions, to on market on X. communicate the like that, table provide current I’d slide visually way of

in XXst. hope. This Michigan our markets markets reflects near-term, of in March since towards conditions the and a we’re developments each broad of further reopening just experienced now No as tightening positive seeing in have we then, the

to be New We challenged continue England. in

when you improvement As related broad segment, to it see, aggregate, projects construction to of market jurisdictions conditions be deemed was regions. and were of and the mid-March can the an vary is over local levels we by and but busy. activity This working remained state issuing by were conditions confusion and of orders and Much the majority that as and conflicting quickly essential. services in were that the stay-at-home our activity ambiguous often those in resolved

that a in temporary facility and in the into April, healthcare for Michigan uptick the Collection an not. Suburban the also and hospital today a add environment we Other describe see did Engineers. in from center of convention I than Army emergency operations, would to England more in our want New Corps Novi, work conversion the March I than as including Michigan of normalized Showplace

project or we and taking are have of to enact approach already decided to slow that markets conditions. suspension, in do in process temporary even said, the virus projects the have a pace the of decided spread who being broadly That working or wait-and-see unrestricted, customers to have

the at all point expect full impacted this continue quarters, need quarter. and Even resulting inefficiencies, stay-at-home next the month lapse over become certain accustomed this couple gradual to return to activity orders being ultimately remaining to the third reaching end then, do we the the the of environment. from safe of a As we expect by be new we a normal, the maintain to field to working

that and properly with the the documenting -- developing compensation balance We of incremental those interest. thoroughly approach those to Company’s Company’s impacts and protect are seeking balance for the costs

of cancellations which the booked customer have or Construction projects yet any not active or any any With segment, any started. we been not notified of facility projects backlog, of have owner into

global we experience some delays. look data and events, As limited we expect there suggest widespread we cancellations multiple current however, national in points significant cycles have environment. this could been economic to project and Again, back should over

by have been also we from has projects. and there construction pivot smaller general While owner-direct managed weeks sales managers, a activity recent continued segment large construction slowdown opportunities in related the away market contractors to and to in opportunities to

in large the market, any which revenue to is impact So, project it intent to opportunities. focus by have might or than or market typically in owner-direct characterized to of future slowdown pause project proposal resources on last had earlier smaller we our continue activity It’s limited of periods. on expect year have

maintenance which, projects somewhat experiencing as our only but a of segment, owner-direct work we a and other reminder, and Service preventative are includes dichotomy. small not also work, the special In

reason, everyone accelerate the revenue have to capital for restricted period. taken and repair work current which in owners vacancies small Some projects. and impacts access have temporary maintenance Other owners the any of advantage building to

they’d for several to by that limited months. We owners notified been suspend number have like maintenance of a contracts also

and that there these any been ultimately address period. be a be that expect this temporary trends to during We deferred to need will has maintenance

adequate backdrop, order needs our and offset from environment will the particularly urgent on impact clients also innovative systems of the maintain airflow functioning capabilities, facility profit, primary healthcare Amidst mechanical of the That’s deferrals. with COVID acutely and to One helped and has unbudgeted this focused the design that conclusions their become gross of owners is serve and some observing to uptime. of solutions. design generated project of in revenue which our amount our leveraging been engineering we’ve

also work improve seen from across demand have retrofit airflow general. a for to in We industries costumers all

So, but as year we as balance look environment today, prudent to maintain mindset, the of we improve, survey to continued crisis that forward the are think a optimistic the continue uncertainty, not we term, the and year. given currently to it’s if stabilize, next will near this conditions in we

Jayme Brooks

to results months teams everyone managers can since have The slide local year, working finance So, the to effort. interface, branch liquidity X. been beginning those has the been It the and customer had impressive particular see with the a you to in management. team improve as maximize extends and beyond of or on been and and project the top effort great the else over capital priorities last are two corporate

has With the liquidity just billing XXth, vendors. of has been average draw more and been conversion has the daily since position actually $XX unapproved with average than $XXX,XXX. less as orders, aggressive year-end minimal improved consistent and balance cash invoicing, million more and March This than Company’s daily well revolver from change the collections, as the concessions

approximately borrowing and outstanding approximately commitment credit most net of loan $X.X our the revolving of reminder, for our million, $XX availability. commitment, $XX.X total ultimately of recent is a million. of letters provides provides to full base As This million that access

only million April of So, the $XX.X and on sum as December million of compared million, and XXth. revolver XXth, the of under as the $XX.X XXst undrawn cash as as hand was $XX availability September of to

not have restaurant small to base. At virtually and or not collections retail energy, any risk And exposure this credit landlords. our seen credit exposure reminder, time, sectors, we slowdown and minimal among have a we identified have in new as the to commercial any customer no

reductions initiative initiative Beyond more a year. estimate capital include the these team, headcount working cash will to reductions in temporary a significant cost we throughout the benefit reduction Only approximately savings local cost XX% also employees. and remainder relate XXst. a have December teams limited generate salary furloughed of and management, Board, and management ongoing executed the These senior for reductions of and aggressive number reduction our salaried till this leadership we

Additionally, is these salaried another on operating schedule. reduced currently a workforce XX% of

been initiative which addition early the both, already, In organization. stages all reduce broad-base of costs these in we to the of also a implemented are have to direct across actions, and indirect

expense card from began in develop implement. all processing fully waste rentals and take credit and exploring categories to equipment management, This supplies. to will several quarters fees We’re January process office and

savings be the will impactful. So, anticipate that we

starting expect in realize quarter. benefits to the fiscal We current

and Finally, for of the possible, we concession all noncritical have temporary landlords. and we deferred capital arrangements rent ever have expenditures implemented where explored

with of in and XXXX. a is rate expires in We both, Citizens debt our as term amortize with to quarter, capital which year’s The remained April Staying compliance our providers, loan our with revolver loan covenants in X, third frequent of of loan at but term communication Colbeck this structure been with end and lender, of million until compliance Bank the facility as slide a March $X loan calendar XXst, manageable December we’ve XXst. term all quarter per Capital. in the were XX, begins from includes perspective,

of runway and obligations So, have plenty amortization we the limited interim. in

Charlie Bacon

to and our it markets. negotiations XXXX, resolution orders, to our pace support claims with we and market ebb to We’ve continue want was and notwithstanding of the these order. We’ve the Mid-Atlantic to procedures. the had been flow positions the principally believe which on recap change without environment, formal the of we’ve working a to process ongoing Before in this we that expected I often dispute process California principles, more the and Southern resolving suitability communicate of pivot values, in address merits broader based of and informal unpredictable aggressively, carrying between and and opportunities always

these discount believe certain half are amounts anticipated and entitled of sheet seeking had values on a of this reflected Previously, resolution we at items reminder, in a first are we the a the to we disputed balance are to. year. As the

complications result COVID-XX, discussions cognizant in and the presented We work payments to or that by in resolutions not final current are the XX expect the but goal and distractions toward remain days. next continuing of may

turn to let’s point, XXXX. this At

Jayme Brooks

perspective, process the Let smoothly, the since me start audit, provided but believe From to commenting ultimately our first went filing the future joining first respect on audit the SEC complicated accounting agreements. set we and of Xst. whether October potential is filing forth by or with technical not Company extension the year’s XX-K this can my which required a advantage loan financial and to the Form on COVID-XX XXXX Limbach forecast, by financial impact our covenants take of meet in the on we

economy situation financial Company April, in comfortable the Each auditors. stand day. changing the between to however, the disclosure, generated of consulting very a late were and to quickly and until forecast. or announcement related able and by It with last the these were the ourselves began were unresolved the study issue, to the any stabilize of events None state projections. an moving or wasn’t weeks Company’s mid modification auditors In weeks about or early the our to economic accounting of March that delays, to circumstances get controls its of and disagreement we April government

also first taken so our for extension of COVID-XX could continue future the have advantage We filing provided Company XX-Q, quarter the on SEC the have that Company. to can analyze the Form impacts by

filing, and within process file the However, accelerate quarterly the to means it to standard after first statements goal and quarter our reporting SEC closing deadlines. our annual our

X which XXXX, to At point, recap this to is XX slide of summarized the like on presentation. I’d

of and opportunities the undertook business change in operation. was prior successful to year. Mid-Atlantic market a was of project last consolidated that year. concerted we In in compared the effort were X.X%, in manage Construction sales quarter demonstrated there flat pursuing the leadership growth We result essentially as to revenue XXXX, which XXXX, of the careful in in a local the of year-over-year, revenue new the fourth modest new

considerations. XXXX, been and particularly We more this also a have XXXX, XXXX markets experienced timing simply experienced locations and which Both were active project to in of active revenue Michigan operations backlog and the activities due moderate timing meaningful depressed year-over-year. Both in Ohio issues had in those in growth year.

success the in and in we attributable by and with a the That driven growth Revenue pleased on margin was segment stronger higher owner-direct pricing year to exceeded long stronger effort small well pricing as to capital results. X% are drive sales, project Service improvement was driving and project as opportunities.

well Gross of was been California as year-over-year profit XXXX have gross XXXX XX%, improved Gross region. higher, of having the to adversely basis negative the basis impact XX.X% substantially Southern Consolidated but increase points from challenges would an impacted by points. several a grew in due execution margin to XXX as margin hundred the in expanded in execution Mid-Atlantic in not market. performance

across other average than gross in XXXX, of in was excess Southern all margin the California, perspective, realized For XX%. branches,

we there gross Notwithstanding service and firmly that improved opportunity is continued improvement, believe mix execution. to due in overall improvement our to an expand margins,

of in Growth additional as in SG&A the certain primarily corporate was and in continued departments. headcount Service that operating benefit treasury. overall. to predicated training increased leverage realizing of support Investment to compliance, XX.X% salaries on certain well operations safety as and in result these benefits corporate for segment related growth headcount was IT in branch This departments and MIS, included increase XXXX would

the in noted dramatic I a however, previously, we’ve headcount across reduction As recently completed Company.

to growth committed in as maintain and economic new anticipate Service environment we structure. Although form to stabilizes we favorable continued support of this segment, invest we some the remain the the cost increase as down headcount road

cost run rate significant should as progress the initiative, XXXX. introduced Additionally, I we incremental broader contribute savings to reduction previously,

believe Looking results from XXXX costs can processes, performance when and dramatic year the level. due efficiencies Mid-Atlantic market. depressed both we streamline Adjusted for operations were improvement improved forward, the and I in was $XX.X reduce the the to branch a further million, workflow creating EBITDA at through corporate

be year improvement months. proportion California LAX attributable our and Midfield $X.X challenged loss of approximately labor incurred it committed encouraging, substantial the year-end, will over several million year, meaningful While to of the is anticipate was which next this to contract year-over-year a which was the complete the and of continue QX. at expect we Midfield write-downs by LAX last we operations, project. substantially was On to by we completion the force X% continue end Southern site,

we remediated was that And material finally, in weakness, XXXX our say remaining which I’m to have the happy XX-K. identified

Charlie. back turn I’ll Now, call the to

Charlie Bacon

a everyone remedies to contractors Let LAX This impacted been the get site. has address paid Many various impact pursuing on are have Midfield on me been ways project and the in for situation. further claims. of challenging also

numerous We to ability by our caused and project, delays impacted redeem original was the our have on basically others, situations, by which faced other budgets. that

We with customer some continue have and progress. discussions have to our made

to recovery. We actions the maximize will appropriate continue to our take

However, expect there to resolution. be quick don’t a we

on minute install the site substantially noted be work of June late ago, As started of a the Jayme systems the work will into commissioning with complete majority remaining the actual QX. being in and

with delays, here’s bill revenue XXXX First, seen expect current to million, forward, look the and like that continue to revenue notwithstanding that we project ability pushed certain I’d visibility to projects $XXX.X our provides projects will already recognize as So, certain impacts. the right. this Those experience share: COVID-XX-related and year, get to and for finished what which we will backlog of year. impact will We’ve

meaningful suggest evidence the that canceled nor these delays become of will backlog year-end portion We that will any that be outright. have cancellations, no

market stress. not While anything is episodes of has that experience possible, past been in our

anyway. built to We’re meaningful also year this was been carrying backlog work of scheduled not that amount in have

clients and the of new but do figure delaying an demand suggests on revenue the on XXXX expect We to expect there to we’re opportunities. and out months, improving further division owners healthcare, clear, social coming major backlog our focus education the We be expansion We To in as investment even slowdown portion deal the small capital plans. do into proposing and increasingly will the and special converted that with in in funding XXXX. will office for our some right work be would projects believe how now, project distancing evidence be increased airflow.

the to diligently past making are comes risk at end, we’re an start processes, base implement in new to least now, with and expect can through pursuit we We’ve project not management teams provide or the engineered compromising quality. market, choppy and as social over develop as adhering third Having various and margin committed our worked a distancing. assist customer be improved that, we will back solutions it to principles. comes to sheltering those sales the very When said of quarter. services place to of customer see up well to the active year our buildings awards, Our right to aware we pricing,

more on costs a those pursuing and we’re made generally, and lot of reductions opportunity, we’ve Second, there’s aggressively. progress overhead but

We our lower this SG&A to for baseline are align committed We and cost better at structure remain future. new resetting and operating need market the to leverage in the better conditions level. nimble with to achieve

Third, with segment. owner-direct about to achieving Service, to We’ve that we’re opportunities. down service Construction confident ever strategy a talked the the long aggressively transition balance pursuing a of aggressively as have business the unit XX-XX growing revenue path our been growing, that and

Over nor place or several that’s processes the environment have we’re call, from parity the do our on accelerate look response trends and in on performance with structure We’ll and required six about forward hear this. of thing in generally the to coming fundamentally and in altered structure put current to our more the in substantially further we’ll transition, technology. to revenue and to next us our thinking segment expect convinced and weeks. leadership strategy right neither Again, the the that anything, achieving but XXXX long-term the last If months, next respect years. say we’ve the our has market of that to more to this beyond industry labor our on to

Fourth this new and any several present continue provide definitive could change, in it’s circumstances and finally, well next to the nearly financial weeks environment, challenges. current macro to impossible guidance and months

industry segment. the With the inevitable to this control, we project environment, improving well-positioned the capitalize We be we our spending will progress that over should growth accelerating on impact quarters. several those areas, Service next dislocation capital, in working in So, those selection. including liquidity, remain on execution, focused and things we’ll focus can of on the

up open call we’ll questions. to the that, with Donna,

Operator

floor Thielman Thank Instructions] you. now [Operator for The Brent question Our go Please ahead. coming of from D. is questions. first open Davidson. A. is

Brent Thielman

in California the wanted work right? done that third to that completely that I Southern clarify just in quarter. Is should be that

Charlie Bacon

correct, That’s Brent.

Brent Thielman

Okay.

Charlie Bacon

up the the some we’ll have this expect the and we to end quarter. post ramping of by wrapping complete commissioning that completion, up substantial of then construction month are -- to during We and June we’re do, work third the

Brent Thielman

of just the Charlie? And well, people as today others been piece what buildings the I has Is just seeing in and that I difficulties impact, and facilities pretty services the in getting from great. precautions. guess, Okay, out heard industry, you’re materially for additional in

Charlie Bacon

Brent, seen have been of and was that. we approached In March, we daily our We’ve safe; interesting I yes, having calls we’ve But, with what this? key get -- areas impacted. we work. focus: around calls daily cash; we had some seen senior get about team, that. early presented three of how management And started Stay

that that society. think a work we get-work to to announced of great we’re to ready amazing care sales the it Corps part, We around good a the Engineers team, of weekend, any And what have must we them out the the first our all open, to service On would didn’t we’re they it was happen. saw reach that entire they happy rallied customers the patient House. tell help really some into received of hotels you, Army concept tooling we On including, received an this any do of that’s sent came started be it, then, and facilities. report, you we’re with essential Friday, can. we a actually innovative with acute Tuesday, I idea if up need converting we it. business, we’ll to for I and way following I’m up on to we week, ideas, White And over

where believed And but and we’re into and Zoom what technology, need And the the we’re virtual think also We the a or is with explaining playing tech. actually basic, other that And building, Y have virtual pretty tech, And really charge create where excited like of but this basically to them use before in it’s decided and We take response the or in using care off. have going go we in boat but building the that. they a don’t going crisis on we we launched actually, with that’s technician fact, services, fee that building problem. crisis service to called we to we full to virtual we off. it about hit called our good things our staring it’s to engineer a we hit, for us it X take to we connecting building to do in to we went take would that. tech were face, And a were to it, -- something the customer actually be with needs.

up ourselves. some do we machines, in we we -- doing in We had us about could were and decided, reach also of can prototype air And negative they locate such customer with things see other ended let’s to manufacture out came we up one a we terms high if them any? demand, pressure

So, the customers showing now they negative it, we ended have other customer They and up machines. units, many loved we ordered ordering pressure what we created. those

for we’ve So, services equipment. is seen is expansion that from before actually yes, providing on, that We to the some make solutions that allowing certain customers by innovative restricting we I in us are that created point of us some up matter buildings. picking think weren’t which with customers see pullback to want some going I

also seen capital Finally, accelerated and buildings their other Service are advantage we’ve empty actually some customers take projects. that

working an around action okay. interesting that’s been But, our I of get-work because mix, stay especially it’s out think get get safe, part, So, the Brent. Swift work, cash,

Brent Thielman

the if how of business to for materially of much guess, has sort of any to in you terms execute have work? be I That’s matter sort contingencies, impacted think that Is they’re been hotbed is a understand extended? just it of a virus. and has of these that the couple and Okay. of or you of there a actually weeks. Company, but able impacted delays to good. today, be, Is here I That’s your much taking conservative in would we XX%, a sort those delays guess, been Yes. follow-up it Charlie, business XX%? charges you that do I couch the it’s regions, areas would being delayed, consider a considering one about of are question, -- were as get sort how another percentage projects? longer, I way unfortunately And been have your that of indeed taking thing, the should then, of step,

Charlie Bacon

So, going. the and we part, have Boston. where Brent, the a was on those wall Interestingly in in projects Namely first cities projects. we Boston prefabrication hit enough, really couple on the of of Cambridge, we had a ton of

So, we prefabrication. while back and on brought the ahead actual our construction sites actually people into production really facility more shut down, got

more So, once always productive field, be those we us we’re to sites open in more less assembly, up, costs. think with labor reducing the helps back because field going even prefab

we stop. -- that. actually, did continued we modeling, of major projects starting with some do we’ve we what information including just building meaning smartly not other could up the that That we So, the executed think I got we’re aspect, couple planning where

be in So, on while an prefab actually well come of there’s continue see revenue the there still to impact the construction revenue physical as We to as some off the field, planning. yes, going Boston. in up

The Planning became prefabrication we that we’re very But, and were by they state our had very hits a took Michigan, deemed in markets And and of allowed And Michigan. in back also we same really customers were up, And open supportive projects just the did healthcare Michigan, we thing. in other up the similar situation. we’re the on focus. the Michigan building. some there some to busy that namely that. were exactly projects essential of were that

not amount yet. putting kind on to On an of able it’s a exact say the percentage I’m just of really impact that,

in mainly I specific our pullback see of of still customers it’s markets were did back let’s start we’ll those virus, they did being, back, pull the and shut just couple we’re about projects let’s that. The organized think, some future. pretty the digesting up concerned told and pulled We like much our back We time us, locations. that because down some customers, get the rest continued. two But, initiatives. for see they

some that’s all bit other But, of a again, we’ve in seen come business that. set

of it’s been interesting environment. kind So an

at contingency forecast -- if those putting contingency in a numbers looked of we’re to levels… or -- when at in taking we’re charge put forecast each kind our these the our kind we On month, some this continues, of looking attribute

Jayme Brooks

Yes. capture washing are to -- team to the productivity, for with really working branches trying that’s its have of of it’s the extra hard the maybe time elevator. or a the hands stairs, we kind taking actually not that taking

we working team that’s that have project with every branches impact. is now what our So, a capture truly and to on that right specific try through

Charlie Bacon

which our terms people, We noticing the also properly has -- week, we’re the to several team, expenses. talking sure impact they’re to our making by once each a of branches recoup customers contract

I So, smartly. handling we’re think Service

Brent Thielman

worry non-res might hospitality contribute coming, be the and and today, Charlie, like I think that today resilient? maybe sectors, Okay. mean, doing, versus all those more is that the equally question And I market that segments you’ve general whatever is a the what’s sectors, I those I center of But, work think been little guess, around backlog think just things last real quickly. what not there’s coming. who I in specifically, office terms knows your of percentage some some of healthcare, data backlog

Charlie Bacon

Yes.

major lot that fortunate get market no do material and we’re a what out is office We work, we of There’s backlog think fit I A get very kind does or of out. company buildings, have in that. like of type the it’s space. commercial the a little that. in lot in anything commercial big it’s of in terms don’t

work We some at are that’s doing progressing. up Michigan still but for Bedrock,

we’re quite strong segments good, backlog that overly seeing our dramatically really not not pullback. this aren’t with, to It’s be a at -- concerned any going I by So, we’re impacted point, backlog. think about frankly,

tactical the I saw dealing post smartly virus things think we’ve sessions I’ll to of window team moved and really had extremely during this the made a when had saw cuts stabilizing at of with we a once back to strong But execution period, have talking needed virus. and we we just think, to opportunity, we do that offsite virtual comment I March, Now, job in where executed quickly. about the stabilize, of execute, done we -- senior make. three were crisis kind the We we the when actually focus? manager we But, start what

when that coming I And with renovate owner-direct next we with that to year our of of major be been about project just with continuing it’s more that’s includes finished. will But, we’ll that already going be push, includes we that and that that Ohio say, believe the and to we in you plan stuff in accelerating this, of particular some pharma Boston enjoying back facilities, that’s and builds, our some virus us $XX $XX real reprogramming by existing area, we’re will accelerate call. majors. going case contracted R&D we’re has we’re one years. market then, likes Amazon, right is our thing already talking strategic we the everything biotech now healthcare, a work. back customer. And a should facilities, But, on understand, market. our or the they’ve healthy for Facebook, of about both, think expand. new resurgence we’re But, up in for up fall going facilities to and mainly the direct we’re ‘XX sectors just billion finished billion part those unique And I Google, that or and best to centers other doing data now, And seeing investment as on that we’re out comes of virtual, going the it. right So, the which especially look be that a several -- that in at in in

So, market us into. as market we continue for to data expand the to another center see fertile

at industrial attractive in think we some side. that, it Beyond might at We the future, through grow in could believe the point We on dabble we’re term. an kind it the through be or that sector, mainly But, manufacturing in sector. near today. industrial not be we looking that organic acquisition sector, of into that

country. as China back to United critical As States the production needs [indiscernible] the moving for of

to us another could into. and continue to study So, we’re be for thinking market that move attractive

business key just years, I’ll said And diversity. this that space also in industry, construction for the is success E&C to a ours the finally I’ve like in add

of We concentration heavy any segment. have one no

does economic So, work question? we one see diversity our potential. an to Brent, stress, and weather like to answer growth this, that the where allows your resources us put

Brent Thielman

Very much.

So, best you taking you, Thank the I questions. guys. And appreciate of luck.

Charlie Bacon

Thanks, Brent

Operator

Our is next question Sweeney instructions] Capital. [Operator ahead. from Please coming of go ROTH Gerry

Gerry Sweeney

follow little to different Brent, and bit with what a a discussing just up maybe from you were more on tack. Just

field manpower be to utilization out sort projects in cetera utilization, maybe but, are probably of ongoing just have the Looking on distancing up a in what different most on rules out idea markets, different there. you likely versus pre-COVID? your is projects. today put assets may and at space So, do you lower place in lot manpower generally, some of of the manage projects flex have ability or the utilization? to right? And et social maybe There’s of Do any rate that that

Charlie Bacon

caused California, been we I interesting Mid-Atlantic, now, business; catch what’s we’ve get that think, on our previous pulled catch down to concerned problems calls, capital and the about of going we to track. some differently. slowed really overall at is But and Southern its industry our business Gerry, able our and to in think and of -- breath assets be breath in back just look everybody the enough happened, us deployment not human I This slowed right assets, back down what the about having is causing past. knows, them, already very we in

slowdown think, going industry. to I is beneficial be the the to

be just capital right appropriately general frankly now will there’ll projects likes like have contractors allow to on of and better think, improved see really to out also think margin construction it. production the the And and the their contractors the human a market, better our slowdown channeling teams execution the quite come appropriately. deploy assets of of I I Limbach by specialty

if answering I’m So, sure not fully I’m question. your But…

Gerry Sweeney

it a say a pre-COVID, you from time. as normal maybe of your given It or was flex XXX staggered backlog on be your XX less cetera. perspective want when be longer, like let’s like meet? just Yes. workforce at had is it; XXX actually people, That’s project carrying shifts XX% could looking elongates distancing, only I don’t a project can post-COVID, just have because you people of and to social on sort XX, a at some of people et project that a what well You on XX because getting projects a almost was at. to maybe sort take I of

the if So, that makes? I’m just and front, figure on puts trying out that takes to

Charlie Bacon

to the with customer and in the one about up he social are processes, started me happens a our have we CEO Michigan things that hoist, So, this us the going talked week be buildings. Michigan our now major distance sort issue again, up approach outsides called it? to as his like customers, how of the day chat big of Gerry, I one a had of on of green last to projects ramps and market, buck that give of and a call a to are we light about hoist the a

a of have XX. You can couple versus only them people say in

in idea shifts and of the daylight. and That’s fantastic. to the second in morning, more got with that. afternoon, wrap the perhaps up staggered can obviously rolling execute the So, We come hours you start the the in summer you shift afternoon your

to studying we’re do to I on. is continue going kind going all what’s what have think, of

call QX the here We’re several with going to have weeks, in another results. Gerry,

perhaps information to I what more study response give noticing in impacts, Our call, impacting how’s this question and on better the protecting doing team And we’ll analytics terms this the next truly, about on that’s also I’ll working it making remember for data customers sure it. us? our I’ll us think, of they’re we’re is have Gerry.

Jayme Brooks

Yes.

schedules XX-month we built that also out. manpower We lay

of how the So, people outlook how out anticipating of what the and are manpower for that’s schedules the that we of those impacts, part number all and lay branches looking jobs. on

Operator

[Operator Instructions] for comments. back At to any management turn the time, like closing this to over I’d floor

Charlie Bacon

to near with you results, I everybody the QX future today. just having us here look and we’ll joining call speak thank to forward anther very the for We for in want then. you. Thank

Operator

thank your for Ladies you and concludes today’s participation. This event. gentlemen,

time. log lines off disconnect your a have And may at You day. wonderful webcast or the this

Limbach (LMB) 13 May 202019 Q4 Earnings call transcript