GCP - Earnings call transcript Q4 2019 | GCP Applied Technologies Inc

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Operator

Good day and welcome to the GCP Applied Technologies Fourth Quarter 2019 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions].

I would now like to turn the conference over to Joe DeCristofaro. Please go ahead, sir.

Joe DeCristofaro

you us thank today's and everyone for on joining call. Hello Craig Randy on Head and and Financial the us Dearth, of Interim Officer. call SBM; Srinivasan, With Naren are President Chief Officer; Chief Global Merrill, Executive

earnings Investors quarter's are this tab. download please available slides and gcpat.com To results go website. release to and our click Our presentation copies, for corresponding on on the

projected today Federal differ our comments will implied those Securities materially Actual of statements U.S. be a Some under to may Laws. results from factors. variety or due forward-looking of

described will more and non-GAAP We certain financial discuss website. our in measures, release which earnings are in our detail on

Our adjusted All release. of discussion constant our the prepared adjust margin, revenue to margin to to in EBIT non-GAAP and as remarks stated and adjusted for and adjusted to currency refer on gross or and defined comments to this References forward-looking in rates the comparable currency. refer a both which the statements are EBIT financial references growth press measures on EBIT margin basis, Q&A. apply to foreign associated impact

With call Randy. over that, I'll turn the to

Randall Dearth

Good in the GCP business positive momentum morning quarter. continued everyone. fourth to show

like our of the more on in capture we number expectations. include following. of of new deliver company offset items the from year, our a the public adjusted highlight. $XXX We million quarter organizational our meet financial $XX to commitments would our positive Each the can on highlights Our for of best inflation. and our These than sales X% XXXX. price for demonstrates I can are We control. we There year we million which with pleased to am EBITDA a when results completed ability what we outcome as about they set the produce installed focus structure.

have improvement profitability volumes, the points a quarter significant basis continued in XXX This margins XXX fourth the with for growth operating on we in margin the row gross XX% points basis new reduced We the improved base sales despite grew sales basis year improved XXX SBM segment XX% quarter by SCC year-over-year our momentum growth the quarter continued up year our in positive and points. sales our margin for the made progress by is at points basis. installed and least basis in is VERIFI's truck XXX year-over-year with a implementing strategy. XX%

into global Later in helped the us insights call. firm leading consulting will Naren SBM the develop. has key discuss to

We are excited to share that with you.

our we forecasting. $XX restructuring planned in due million adjusted XXXX focus in in XXXX, management capital our flow free and savings better by continue to as programs execute XX% resolving to on working in and We grew on our cash

adjusted achieved a a and of despite project by We result, driven with SBMs our product cash before. results flow of sales percentage As continued as improve. challenging in as the we these have to you XXXX percentage so adjusted shared a free EBIT faced lines conditions

know to have I'm right that forward, we're that the Looking we on more track, work do. we confident

key our implementing franchise about of programs, priorities XXXX few our on delivering optimizing SBM model, programs today's and sustainable build which further team to for restructuring in growth, to discussion. employees talk well on VERIFI's operating a additional our I'll and includes management continuing focused as out announced which and later as efficiency Our are returning SCCs the take

shareholders. a about all talk with And areas, of on build executing these substantial later priorities our more business degreed will and By more value on we we'll predictable potential focus these the the stable for call.

areas SBM will comments, for for and financial review for detail. like business and I the in other guidance. our more an following the XXXX update now little the Naren's to including performance our over quarter focus the call a Then Naren And turn will I'd Craig SCC on to discuss company's our

Naren? So

Naren Srinivasan

and morning fourth due in what XXXX, consistent previous SBMs with X% we levels. and quarter as quarters while the quarters Randy, sales result an smaller decrease with second third saw residential good in you, year-over-year, stabilizing in to improvement the demand primarily and performance of than the in everyone. was a Thank were down sales inventory

This residential for by enlarged continued project Envelope. offsets improvement activities with Building softness, to

did in American North decline compared the see earlier As year. in expected, we to Envelope a sales year-over-year Building smaller

the building offset for However, envelope. more this Asia Pacific was in challenging a by environment region

optimizing As business. strategy completed we segmentation, innovation analysis our growing the SBMs have mentioned, channel and of of market Randy with goal the and approach

remains SPM product that blocks strong that service the longevity for building performance. confirmed core benchmarks will remain commercial These industry advantages work and of foundation success for installed technology and quality success in brands, with positioned our the This market. remain feel technical and

Historically, discussed, as residential done and the commercial well markets. focusing segment we of the have we have on premium

Water Our revenue America in North Bituthene North East differentiated including West and selected profitability Coast. to Ice to and and Shield Preprufe, and been and have weighted technologies our geographies the including

is our near and additional term American particularly SBM and geographies markets and segments residential presence our Envelope are for Our in focus North lines in profitable around product that growth, organic restoring sustainable growing. Building centered like increasing

weighted toward sales increase half the second in year. SBM expect with X% We the to to XXXX X% of growth

following our as of the pipeline improvements well growth Based America in particular in North as the in plans. implementation on year-over-year

applicators. we go-to-market contractors commercial specification resources are that historically to our large targeted for enhancing compliment one to deploying or projects residential we strategies products a commercial Building investments from to business focus led our our and expands our Third and include are increasing and Envelope architects

additional investments members, of segments. These will and programs, contractor the project us risk and additional include geographies lower in our improve This certain capture segments. to for portfolio marketing mid-tier share and these sales team product enable in

market and can These us provide time. solutions athletes over strong which driving target while returns important we added and sizeable ones value segments customer in for

traditional strength outside in making our headcount For the segments, of geographies the residential our residential targeted redefining we key inside Northeast in and are product offering. additions and

product campaigns, value incentive marketing lumberyard supportive through program dealers. overall relationships improving investing with with proposition loyalty and distributor through and in are our contractors programs, building closer importantly and We our

that optimization believe supported extend of position growth programs nationwide the market and these distribution footprint drive segment. this our by in can and returns our We

identified Promoter and that have awareness portfolio customer larger adjacent we we current Net strong performance and we segments. while a score our within course our product extend product Second, or strong NPS segments, can market to market

programs, coverage, warranty more training and investing making projects. addition bundling and our loyalty programs win sales investments customer targeted distributor are In to marketing and contractor conversion digital improved and and in product increase in to certified we

are products waterproofing for the the of and new products accessory accessory of accelerating we infrastructure Finally, new further particularly mid-tier commercial our barrier and launch benefit launch structure, with the air market. This portfolio, products, strengthen to year foundation, selected and the premium waterproofing, new segments. and products to our multiple organization we for expect

are segments SBM next plan our that growth over we for core calls. generation XX sustainable to months. and will next providing additional We the directing we to look in will believe you future earnings technologies yield progress our investment on on that offerings restore organic this Importantly, to XX updates forward

turn performance Craig, and like the financial now who our discuss to guidance. to will over call I'd

Craig Merrill

you, everyone. Thank morning good Naren, and

from Half constant and was project primarily exits the revenue a all in SBM. declined a planned the currency quarter, in expected SCC on basis. balance GCP's with comments Just of $XXX fourth growth revenues revenue associated activity X% the my In to decline due are market million. reminder, consolidated rates to lower

that year. customer completed reductions there commitments growth earnings We are with substantially laugh which the SCC trailing and program, our the have produced some exit this to first in is we of cost associated market strong half SCC expect

successful we offset value both price services the can and We receive appropriate XXXX capturing the for we we products SCC and were that and price XXXX. SBM in saw XXXX in inflation that provide. shows in X% in Capturing to

inflationary installation communicated usually materials. previous for As it pressure us raw recover as in to high two is has around as been quarters it on years. not Currently takes

Adjusted increased product which gross due due the in the sales was mix in volume of as supply increase impact pricing EBIT to SBM. exiting expected favorable basis offset we unprofitable savings so markets margin initiatives that Adjusted XX.X% unchanged primarily was the fourth points in to on SCC SBM. more margin SCC's improve than adjusted within in lower chain of and by leverage offset unfavorable operating margin EBIT XXX quarter an year-over-year XX.X% reduced

Looking activities profit operating at of and as $XXX to and continued sales unprofitable to X% and that discussed. deflation. up were due XXXX the resulting second have the plant as income were SCC conditions to down in undertaken margins gross of privileged Segment to the actions favorable primarily to previously we fourth the SCC last other year's markets, the impact operating grew on a material improved of compared Two-thirds was lower The restructuring basis performance with XX% exits tighter third SCC's lower a restructuring delivered improved primarily million. as in the result which have positive impact as half of Pacific decline Asia sales points, reduced expenses of we of gross segments, well market actions. geographic pricing quarter our activity in from raw credit the we due XXX exiting strategic

compared volume gross X% unfavorable material an due America to a was Pacific. activity lower the the fourth settlement period. product to primarily acquisition were volumes in sales segment gross offsetting to XXX year down than year-over-year raw North quarter increase margin, expected with due operating prior volumes to XXXX year-over-year in volumes basis more project as and was declined price Building lower mix and costs. margin revenues Asia Stirling by points pricing Lloyd down residential in due Envelope recognized in leverage, improved XX% increases SBM SBMs higher and SBMs offset lower decline income of to operating both impacting an lower related and related

as we XXX us restructuring Turning plan XX Randy year on as about programs back million, helped in reduce restructuring which we million. our our expenses executing gross $XX basis XXXX by of GCP points margin by a and savings our improved to are discussed, the whole, operating for realized

XXXX. cash were resulting in pay in savings X.X was year's similar capital solid generation payments. plan to and million compared sales was and last due the XXXX quarter, increase lower restructuring with million working primarily were XXXX. compared offset costs $XX cash These on of lower focus quarter. improve our $XX flow to volume fourth Adjusted original for supply interest Greater by to for free for forecasting. The in Corporate million year demand the in

management a and are the designed and these of place increased Through cash initiatives regional transparency substantially to inventory efficiency that to number country expect our individual flow have We operations, we improve our and of our initiatives into receivables, improve time. in process. over payables

based XXXX a market on the for assume construction declined total perspective, a weaker from the regional to year offset and in to XXXX outlook XXXX, modestly we last America improvement year that spending relative market. our residential versus infrastructure third-party this with overall non-residential compared Turning data, by in North segments

also factors growth expect Europe Hong Covid-XX new in in XXXX for construction such Kong. Latin virus, modest Asia currently and both in assume We America continued and the construction the in modest spending political trade full in unrest year we Pacific as growth despite the tensions

We continue. also China expect to in the credit tighter environment

companies, we virus. the closely all are Like monitoring impact Covid-XX the of

we Pacific about about with a by EMEA of at operate sales globally. know, America of storage at a our Asia XX% North or than you our more X% more total As a China representing and XXXX revenues basis bin than global annual has XX% XX% little XX% on followed

of we that Covid-XX daily, the Asia virus assume X% expect region XXXX In approximately changing situation X% impact is assumptions these based price this approximately ultimate Given the unknown offsets of growth on time. construction capture and at globally exit growth we is the impact in excluding GCP spending we of XXXX, country. more expect that for and sales the in inflation on than the

targets. programs. beyond million merit restructuring compensation discussed We annual and savings in savings by as partially on offset to XXXX These investments our will incentive approximately as drive XXXX investments Naren VERIFI in and expect that XXXX well $XX in further based of financial SBM from and has increases the growth our

growth to for point, our range X% mid X% forecast of is approximately $XXX the $XXX approximately the the $XXX or to $XXX million at is EBITDA million a at adjusted for adjusted growth Our or million of midpoint range. million EBIT forecast of and

year. to between full adjusted is tax to rate for between $X.XX expectation with the XX.X% XX.X% adjusted $X.XX EPS Our

to For refine approximately expect $XX year capital million management million continue as $XX to adjusted free cash working we and capabilities. we flow, full our processes

at SCC in and more Looking SBM detail.

exits. SCC, For by some in sales expect market be and flat we growth XXXX to VERIFI approximately additives remaining with some offset and

we VERIFI XXX result excluding about savings. X%, be a and sales exits expect market operating up to margin sales for growth gross expect between margin approximately of to XX improvement basis points expect higher be SCC we We XX% program as to to restructuring segment

Turning to SBM.

growth compared in segment higher As investments America. margin to making in SBM to sustainable XXXX with of marketing we due Naren more target primarily by similar are sales to mentioned, volumes year to X% and XXXX X% improve sales operating expect growth. to We and we restore to to North prior the forecast favorable offset volumes and mix be

the SBM expect segment results to We on the to impact sales in income investors second of XXXX and half investments revenues. timing weighted the XXXX given compared operating of be to in consequent in

had the year America expectations. deceleration slowest slower impact milder quarter reminder, the is winter as as of Covid-XX to seasonally virus. our A Pacific ongoing a solid region has in while to has well North and the a first the due the to January contributed met As quarter. the has Asia our start February performance economic

As the the season in key quarter in always, this construction March in our will ramps first be performance month. up markets to typically as most

information half, of the the volume X% the restructuring XX% to we of and at expected, sales available With earnings second due the as continued the our historically quarter expect we positive on the EBIT impact the to adjusted year. a this in performance have first of higher typical in initiatives. time, XXXX improving year progresses Based

it that, to Randy. With I'll back over turn

Randall Dearth

Thanks, Craig.

and priorities, was the fourth at So costs. improvement our our structure place to nice meet a our And on as on second rent put, on when have and Building we financial as look do execute our back focused third what expected. are more sustainable the with XXXX, as and look as is performance, Simply put showing Materials organizational the plans the our it said commitments. laid I And still I clear quarter Specialty can we we focus this. can of growth control, out returning do. focus following We to before, we trough XXXX the quarter on to to that in strategy in right we

go-to-market Further success in GCP build to had a and challenging on about to implementing we've Continuing stronger with our momentum I'll advancing achieved our strategy, model minute, SCC's and restructuring a and optimizing operating we've company. make the additional which plans VERIFI. and and projects talk efficiency

first talk me SCC. Let about

emphasizing operations, to our in will continue more markets includes to efficient. profitability core become our We service prioritize by SCC, and which modernizing model

strategy three Our SCC for elements. includes

admixtures First, to optimizing portfolio model. we plan and by reinvigorate our product core business continuing to refresh service our our

introduce as to as for our We products. durability plans have enhancers well admixture generation technologies, as strength fibers specialty such next new

our PLUS, tools approach One model to chain is optimizing of management. our tool supply by more improve integrated online approach. are digital new a GCP component example We processes. chain implementing an to our to introduce ordering supply is tracking this service

VERIFI of the customers, our Secondly, to by new related driving business. current closely admixtures we VERIFI's since adoption are and

portion we data and would truck gain process installs otherwise the that additional the VERIFI. in have admixture the to business is without grow strategy business of additional not Our with

VERIFI's revenue per We to functionalities. expand increasing also with cubic sales yard new IoT plan by powered

is from management goal to an solution to in-transit end-to-end evolve provider. Our an

reduction, engineered our The tissues introductions historically were dioxide cement strategy focusing precast and expanding additives, done new carbon address We which of expand our market we which strengthen opportunity by challenges, We flooring including specialty product shortage include With very a third supplementary our on in industry material. products. and engineered with business our element segment. products have and is well the some developing approach emission in. is go-to-market flooring and segments, of new our cement, the plan SCC precast to to system

needs. introduced which internally recently qualification cement The new additives, through customer involved tool we accurate meet more named specific We algorithm product and costs customer the tool uses also have time a selection selection in which proprietary DASH. to and additives for to GCP cement a reduces operating process accelerated needs, the select

So Taking in initiatives as and annualized million at $XX million XXXX, are expected. XXXX. by savings $XX let's restructuring million our efforts, are cost savings $XX out yielded And corporate talk and in in about a savings. about a GCP programs said, targeting whole. we restructuring XXXX, in look Craig our efficiency working as our as In approximately

our have best Our our running focused on and to we focused class organization, effectively of efforts matched supply diligent a be with our customer internal remaining operations business and continue ensuring services in spending. chain our about the needs

and we last GCP, over represents earnings over we to a external that partner, X quarter's earnings. by completed on The has next points to $X expectancy to opportunity for for source the Another tax additional X percentage selected is reduce years. provide is to assessment, of have call. project percentage discussed three an who tax rate we time. based an optimize And believe, GCP our is point rate tax initial million designed project on our We tax to each their analysis rate two percentage point the about in optimization

ways to We to drive efficient, will more improved become for to look we continue profitability. how operate

So like additional few a would before I to I on comment conclude, topics.

we Day. to durable we construction philosophy that our we to is mine. more efficient of a to also to footprint safer, The of but and spring expect not will have contribution previously, and our our manner, our reporter an And I'm in this a happy that create and structures. report sustainability of want be it's sustainability physical Earth help sustainable the discussed sustainable publish services practices and we important priority to as fact and first outline products more structures. report around more First, part proud do aim manage only We our what GCP

a CFO for is permanent search our Next, continuing.

no have specific timeframe. we So

an permanent time. the as possible. to as soon appropriate working update are at appoint provide a CFO We'll We

to allocation. Turning capital

recognize shape. we previous sheet our As great that in balance I've is mentioned in calls,

regularly team continue it is moment that capital Management our the best flexibility. interest to our and allocation discuss and Board to we preserve at Our believe financial

allocation we'll our and update our approach as to continue We will Board, discuss with capital appropriate.

on It to our you diverse we today's our so call purpose or to is on Lastly, is shareholders, committed all maintain strategy commitments our this not Starboard's annual nominated deliver on execute time. to the independent, have any The further dialogue our GCP making the for and seen are has election to director active announcement. revalue of to shareholders. experienced and and at XXXX at meeting. actions comments candidates with an be nominations our will may maintaining we an discuss we shareholder for conversations taking Board

to like employees the wrap hard would behalf they of moving and my I we work and all we continue for direction comments plans. up the personally go. implementation the thanking our effort my need to to devote by our Together are the of to leadership on team company

XXXX made forward I all and is XXXX us company. of stronger, to make seeing we've behind to GCP changes the impact positive look of that more profitable a the in

call joining you taking and your So look thank for our we questions. to today forward

Operator

Thank the you. floor Instruction] [Operator questions. open we will for At this time

first comes from Our GE Research. of Bole question Rosemary

Rosemary Bole

Good could you if touch details more a on the was mix sequential. margin wondering, in little morning. for I drop Thank was you. SBM, unfavorable the

in one what and can in happened we expect what we XXXX XXXX? So -- can

Naren Srinivasan

Building I'll add. reduction talked Envelope Naren. let XXXX. course there Building as start business have a Craig a that the those seen of this mix. Rosemary, the the to The projects as is of we business the as and The and is continue large significantly about, fewer we've of Envelope well towards margin overall I'll focus through number did reduction and also contributed

there help which was driving was business. Envelopes factor, Building so And does and an while the was for factor primary residential, the in indeed uptick that

Rosemary Bole

I would apologize. sorry, I'm you So ahead. have, go

Craig Merrill

mix the products I that point in we've an those. particularly they're had mix. margin just starting And it both going Historically, a than XXXX, high of that high where mix projects unusually better was point tech moving raise into two to X. larger expect we No, to generally make the was unfavorable better the and on

Rosemary Bole

medium in substantially projects the obviously, So the you of sized future. those than it target order to to smaller pushing projects. as those sounds projects in large size are emerging And small-to-medium on the higher yet that

we decline? will that should anticipate So to continue the margin

Naren Srinivasan

take So that we making to are and those realize in some benefits in does the we're middle time Tier, stage where of intermediary that. it investments that

continue I'm shifts. have the I in We've are that moves. the But larger from we fourth of talked to XXXX, projects been the expecting value. headcount the while work to over So number expect of as time. we've the investments a The And and investments come do benefits fewer benefits basis, seen marketing appropriate the into been as as that making those making done, quarter we middle right related results making of of Craig we the deliver ads will and the to the have the we've mentioned, about, fact a to of results year-over-year still see Tier. move that I we're believe

Rosemary Bole

I VERIFI you apologize many All big five anticipated growth currently? think I if a did trucks? in I right, at is that business you. zero How I thank And XXXX? then right and looking said How that missed it. here XX%, you

Craig Merrill

Craig. the 'XX. XX% a increase, it's in we Yes, had over Yes, increase XX%

We've today, We XX% XXXX. we that in end increase to the X,XXX up anticipate customers and units expect got be XX% for over by contracted another XXXX. of

Randall Dearth

program $XX the includes not million gotten our management, by would we're admixture with the the none to having end is remarks, the to we generated data have VERIFI this through we We've sales $XX technology. and know million the at sales, also without which of VERIFI XXXX, in but Randy. increase which materials Rosemary, as committed of looking

we're the numbers. So to holding

Rosemary Bole

got XXXX you. thank you in if in raw I declining. that A XXXX? think pricing need are some material -- of to back going flat you the to right, All to question give is last Do you And may. one

Craig Merrill

we we is moderate in lack very expect XXXX, not to our to plan, we the that have of and XXXX giving But and pricing. the No, during built into increases anticipate back very that anticipate. price due be in we Craig. moderate don't built It's increasing inflation price

Operator

of Alexander comes Jefferies. Laurence from Our next question

Dan Rizwan

concrete you How I you? Dan poured charge set Lawrence. So do per up? of how guys, is, VERIFI, for are of per truck mean it's is more Hi this for or kind Rizwan

Craig Merrill

daily on a model the on way concrete that the We're we of up we very a poured is a a basis. very proud daily it's up but -- on set model. concrete, generally basis As great that generally usage on it's and set on it It's the how poured to a charged and basis around the their And usage XX% a have they much a on concrete on daily use a generally if system. truck. the basis pours they unit XX% customer actually is of

Dan Rizwan

Okay. the, That's are continuing I expanding the gap that, versus Is just helpful. I guess then not. or narrowing? for And to stable? versus VERIFI you more in pricing mean, charge

Craig Merrill

We And we same utilizing able VERIFI on to also the some we're and utilize value in same basis into a business but the to to looking so we're resources system. our customers model. at sellers our we're trying SEC added year customer-by-customer help pricing the the better optimize and last it individuals, integrated be

get -- can utilize we can negotiations, contract admixture as I before we're okay. sales admixture utilize doing where VERIFI to VERIFI, we where new said in So absolutely

Dan Rizwan

And just cash said $XX think I terms then costs? of in finally million the cost XXXX. a savings that do cash you're or in to going you of in What's

Craig Merrill

$XXX XXXX. higher been that, and running slightly anticipated in in than we a but were we've basis, little a Generally lower about XXXX, we

Operator

Shaw Chris from Monness question Our next comes Crespi. of

Chris Shaw

think characterize market or globally construction The first thing is something the down that. I XXXX you like modestly

loss organic year, what you're a was? that. that were market that of reasons weren't market I know an illustrate it's of but probably but for there full loss basis -- would share. on is what Randy, And Maybe for down just you think than if just the do think share the your so, more sales I

Randall Dearth

SBM project we within a number large of years portion Not business. the projects but biggest we in compared and those to the those And size outlined the driven our XXXX decline of the numbers. saw numbers, at large them also looked It's only when the past, we've projects. is drivers SBM, of in

Naren challenges. back. in pointed projects, that opportunities saw you But And to turnaround So pretty to initiatives in looking XXXX into that larger out, biggest we where the SBM we're with that the was XXXX. some a them, when for as SBM confident opportunities that we in XXXX come those outlined the combine we see we'll contributor of see

Chris Shaw

projects projects Share the or was than projects. in the grew large that slower large small

overall And just so on of you market, side the represented it. were growth the slower

Naren Srinivasan

a was on comment Naren, that. and It's make to I actually going

within our the within is XXXX, contributed see feel large just, XXXX. It And believe and large that stable. remains base higher our the do projects segment, lumpyness. has that So I pretty base as certain But project in delays XXXX. we into you in had moving number is revenue was confident look particular been at number which a in of benefit a as did would share projects share we in And the and also witnessed, not of us is overall wins segment, challenge a Randy base it we we where saying, in we is overall stable. projects, XXXX that our business XXXX of that being a fewer to see private that just

Chris Shaw

X% looking X% year does yet? that And do point? you for to hoping that business Or you a line play growth half the how is on SBM, -- back top out? then on a to forward at I that weighted. it's is and question this at have you're know though, business win And it booked My is

Naren Srinivasan

That's of a great both. question. It's a bit

stronger America year. will again our North is add. of But we pipeline the last our North pipeline we in number basis, a what within we that do within which see very than rigorously piece business, particularly pipeline project and within projects, do open secured on track the America within So a year-over-year saw

an with growth that initiatives X% of improvement expecting that went lead the bit to talked a growth about. overall are we a So lot the XXXX, combined X% to of we through in we've which

Chris Shaw

a Thanks lot. it. Got

Operator

Seaport Our Mike next Securities. question [Operator Global Harrison Instruction] comes of from

Mike Harrison

after customer those some a Looking SBM some and has be to at the you moving and have as you're growth are is the environment with help your the you more increase help you Northeast geographic where new Or really markets? been have exposure? in increase going national tapping your that and good competitive Westcoast, aggressive relationships geographies. you're pretty you're feel some understand, and going get about you hear extend that be and to presence Can as talking me and going the just that or the on I presence? you maybe business customers those in going the plan. to regional your of or into focus to those historically into me poll it you geographies areas strategy situation you regions, understand, where look competitors Just to a maybe

Randall Dearth

Sure.

more our those little project larger where on have both aren't to that it's we're on more the had within bit into the middle with large the call geographies I geographies. both within opportunity strengths, headcounts middle have Tier it. Within been our the And established bit presence feel we said, we customers have larger do a on of relationships as in and those that And an extending parts relationships but we of confident to And get projects. geographies, sometimes think in we better ability focusing are we to what positioned. geographies, be do And focus we those as has country, to our we the see of as that other So just projects extending focused there. well a you strategy through where well Tier. very of customer

service So overall that marketing is we with the put are better that relationships plans our need penetrate a our were well team, business. Tier. technical that it different our as that the and to to realized attack we as able place segment to opportunity secure we middle to to be work have But sales together portfolio to in aiming

Mike Harrison

wanted then, XXXX also what you ask your are gets for the that control? the to on do or your thoughts the And high-end of wild Alright. low-end or out as cards either your control some Maybe of to you of in what see outlook.

Craig Merrill

Craig, Yes, Mike. so it's

performing. to in execute the needs we as to get and it's program high-end, really we're it's on project the how and you if So SCC and outlined. Naren strategies confident SCC need SBM -- fairly stable to obviously

of much those. third have then execute. has obviously work have restructuring and a still on too we one, the that There's risk programs continue to not still doing stuff that's to And the your that. a we do it do So to

So on at as there's or market and through I expectations, that decline modest substantial market. no the impact high-end our done say would all based move and those on the year is the no least the we get we as

think, all get can three done. we we generally, of those But

So impossible in not isn't all it And for suggesting high-end cause got detailed at get is plans. the we're to sure. place pretty done, it we've the plans

say, doesn't would we got program a as executed half in slide at quite restructuring upside think G&A second I have take. bit little On that's the low a detailed the the we've we've difficult is I a think, SBM. plans. get quickly. that do but QX move mean, We were more programs the I at, just of I there's course in little either back the which maybe to do because that weighted bit risk some some bit. on on And tempered get of some as the to questions, And also. little think quite you to could early half a end, sometimes we But then restructuring, the of in

So to that's unknown pretty we months an that little six bit moderated cause that. it's confident a three were out. But of we've

other of any the which we market, really over. control kind don't book ends the that's than have So

Randall Dearth

monitoring of serves remarks And China daily China, impact. obviously basis do manufacturing the are we're on is fact of really a a there. talked none our China, manufacturing are. so in But let watching about priority too, one obviously and have see, a that as number that employees we in impacted. this me And just employees The companies the safe. have focus we add the most little situation predominantly and China we But out we're our bit on the as today, pointed material been Craig with as don't and

continue we'll So to monitor.

the inform and We continued accordingly. to look situation you at

Mike Harrison

revenue last the there then VERIFI. disclosed Understood. is. the of think an earlier believe don't That's color. that I business what I was run about question question, good And current rate a you

Craig Merrill

we when generally And and let No. trucks know we yet, haven't communicate the out you we we'll do but have as we many the market, not Mike, of how and contracts do. revenue. in

Mike Harrison

Alright. Thanks much. very

Operator

speakers. question-and-answer back concludes our And would today's session. Thank you, like to time ladies this turn this it and now At gentlemen. I over to

Joe DeCristofaro

to in we our with first the everyone you on spring. quarter call forward and our for participating Thank look in you call speaking

Operator

concludes and ladies today's this gentlemen, you, Thank teleconference.

You may now disconnect.

GCP Applied (GCP) 26 Feb 202019 Q4 Earnings call transcript