BBCP - Earnings call transcript Q4 2020 | Concrete Pumping Holdings, Inc.

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Operator

Good afternoon, everyone. And thank you for participating in today's conference call to discuss Concrete Pumping Holdings Financial Results for the Fourth Quarter and Fiscal Year Ended October 31, 2020.

Joining us today are, Concrete Pumping Holdings CEO, Bruce Young, CFO, Iain Humphries, and the Company's External Director of Investor Relations, Cody Slach.

Before we go further, I would like to turn the call over to Mr. Slach to read the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important caution regarding forward-looking statements. ahead. go please Cody,

Cody Slach

statements. like results call, everyone better to we statements. that certain our I'd numerous subject course and differ risks understanding in materially of operations, uncertainties forward-looking making be this give cause will statements to Shemali. are that to actual remind could the of These to Thanks, you such a from

cash for cash any Inc. intention and result the Adjusted which We publicly debt purposes these internally that events, obligation measure whether information risks reflects under cash is in for defined This this is and agreements measures. net because company's cash uncertainties, The and flow monitor the EBITDA, could items. adjusted to call, see the performance. believe are Net outstanding provides management useful EBITDA presentation this represent flows investors today's company for Pumping statements, sheet. from EBITDA does less measure, as paid subtracted of SEC. deducted to measure not all measure provides monitor Free flow in concerning same our payments from non-GAAP of will not measure expenditures the and and otherwise. for analysts and is such it debt measure. or cash servicing or disclaims certain business. order adjusted less filings available as are We useful principal assessing be reported evaluate leverage cash of adjusted update operations it obligations. since not and provides EBITDA, yield non-GAAP amounts this also certain investors GAAP to Holdings, company's or with of information Cash financial for balance industry to the believes free non-GAAP used future forward-looking revise cash. to information is discuss the interest. the from CapEx For debt useful, financial debt Concrete investors net core reduce On the we the consolidated the flow substitute operating believe evaluate new order any expenditures non-discretionary available the use CPH a information, a information as non-GAAP company's we and management debt because discretionary and flow residual to

or to GAAP For reconciliation refer and to debt historical on measure, investor company's website. the the comparable today posted financial EBITDA adjusted their directly the please net in presentation issued release most press

not income as directly available as amortization. today's for taxes evening. to will website. and this be call cash the reconciled in provision of done without the and also forward-looking the depreciation EBITDA various predictability such the A well guidance However, be to available company press is company's I'd replay on reasonable range to replay the will for like webcast provided comparable as the discussed range the most this this release because remind link cannot free measures via items, regarding everyone forward-looking reconciling due later GAAP adjusted lack be effort flow and

Additionally, company's an the have to updated presentation we website. posted investor

Bruce turn Young, Pumping CEO call Concrete to like of the to over Now I'd the Holdings. Bruce?

Bruce Young

Thank and you, Cody afternoon everyone. good

we operations foundation. our of continued our XXXX the the of financial testament has The throughout work hard the our across maintain to navigate team continue been to year fiscal and efficiency headwinds our quarter as solid operational resiliency the quality and and allowed us has and lingering navigated performance Our a fourth markets. COVID-XX to

we operate. the in evolving which health to throughout regions adapted swiftly have members team Our protocols

our position guidelines. flexibility their as health Despite quarter. further safety we strength prioritize financial the changes We’re to we continue and monitor of deeply maintained and in in grateful their resourcefulness for the fourth we pandemic,

We maintained continue year-over-year and EBITDA adjusted highly margin cost expansion. benefit to from variable structure our

concrete business, revenue services in throughout generated double-digit growth addition, delivered our year. sustained waste that a In the management we strong have momentum

we approximately to of our to revenue to Gross fiscal $XXX.X increased XX For the the basis was market our to resiliency demonstrating compared when million XX% XXXX throughout challenging EBITDA adjusted margin up X% business full-year, and XX.X% backdrop. points and model reached by increased ratio $XXX.X of will XXXX as Further strengthening X.X $XX targeted our been ended debt year-end reduced million Iain our XXXX balance progress since million. shortly, has we highlight have made Net sheet. we leverage times. significant fiscal

established May equipment. on the leverage pandemic. approximately priorities the all we our Along to respond targets, our In key with into of meeting XXXX invested in $XX fact, executed to fleet have million we we pre-COVID

our kept have variable resilience, our due operations businesses which to controlled support and XX% strong workers results today's agility demonstrated roughly safe, costs model. We and costs maintained operating our

on see us to our foundation sustain that but also challenging execute strategic difficult not growth fiscal year-long will only throughout ability our these through XXXX Our this beyond. our robust long-term period objectives and times, during proves

pandemic. this the dive softness the to a the as back onset quarter, COVID-XX COVID-XX starting with further, we bit U.K., into as performance quarter since U.K. revenue this to have Turning experience in U.S. business, our of several our well in as softness reflects market, continue fourth the related driven markets. we within To

as particularly markets it of the as May, severe is April work, recovery starts. of infrastructure was project While across new the pace and and remains during our curtailment not business operations slow,

the across U.K. put given place restrictions continue lockdown changes and closely monitor We the particularly last month. status region in recent reinstated to

has and therefore we of job new the ongoing The We essential expect of easing U.K. COVID construction majority these remain work safe and to where will so. of any been expect that vaccine open based restrictions of be considered sector rollout. the will cases do sites it's the the success on monitoring

business, multi-year In continue we project our our the continues activity on for strong a represent contracts opportunity job. addition, for HSX this bidding to and

offset markets organic of within modest These by headwinds headwinds U.S. markets. modest and We Pumping took the COVID-XX delays business. project regional experienced and many other than to our growth our now shape work of Moving more were U.S. Concrete interruptions. that

residential in growing that through also quarter XX% to reception this trends roll-off and fiscal within of hand, demand revenue as Eco-Pan year market utilization operational business throughout reflects see other of positive and expansion into growth carry have the U.S. believe strong The the improvements our as geographic the we demand the Eco-Pan that our fourth continued continues. XXXX. will strength The we continued our have penetration increased service. and On achieved we to the well

it position to support containers that entering strengthened and strength financial opportunities we’re evolving moved summary, can offering. economic larger intended hook available variable As trucks. sites investment lift a around I of mentioned growth attractive of with operational can exposure to with positioned XXXX macro balance us over service long-term handle last that and the or volume roll-off XX% well sheet conditions and value than of geographic standard fiscal removal our an Having cost as seek both accommodate what comes In Concrete to as job months, the structure well larger be as coming allows our service expanded with enhance is diversified make and our our roll-off address pickups revenue from company. roughly segment the Pumping industry service us Eco-Pan quarter, waste or the service

can quarter hand like year to on Iain, so call on then fourth Iain? overview full-year we will detailed our provide I provide XXXX XXXX, he fiscal over to and market expectations financial return some a I'd as the to color Now results. our enter

Iain Humphries

Bruce good and everyone. afternoon, Thanks,

year-ago results, quarter. XXXX was generated $XX quarter fourth we volume million U.K. of our into to COVID-XX slight right The across the Moving decline to compared of the $XX.X in due same lingering revenue markets. impacts million

as mentioned, offset our many by declines this growth organic growth In related in markets, we certain addition, COVID-XX Bruce than was U.S. while generated markets. volume in of more

Brundage-Bone such operate Pumping revenue same QX brand the was to operations, $XX.X million U.S. mostly operating $XX.X revenue to our the in compared $XX the Camfaud the year-ago million was Concrete quarter. under million, in segment same in quarter. $XX.X U.K. brand compared year-ago As largely million the in under

with this was pre-COVID reductions, few to rate. run currently over running driven past construction the particularly our is at experienced by slow revenue XX% infrastructure. U.K. As a quarters, COVID-XX, an approximately we've due recovery of from decline volume The

return for Management Revenue brand long-term runway As monitor regional trends, anticipate tempered expansion, recovery a ample capacity, and operating and of the utilization increased quarter. share expanded U.K. as in was revenue full Waste This we to by Eco-Pan pricing have under the additional fourth the we of to the project continue market roll-off U.S. multi-year to HSX. same Concrete segment, the the robust growth in the Services well and million assets, we offerings. $X year-ago believe our rail including to continue in high-speed as $X.X quarter, from sustained beneficial in improvements markets, service million to volumes organic XX% driven higher our our majority compared our

a to of continued our allows and large have for pumping potential across year-ago to see X% the the compared higher concrete quarter. our locations, services services. in investments us in operations pans accommodate XXXX, our We optimize same when We penetration pickups leading in established QX field, larger the for through small which the to Eco-Pan increasing service in tremendous this our several Pan as roll-off indicator our further volumes is future At footprint. approximately Eco-Pan end are existing

in would still this generate double-digit expect entering revenue without we In segment. fact, full-year growth new to markets,

to $XX.X depreciation was of was to was increase year-ago QX manage have and back cost in our compensation quarter amortization same million slight fourth Across expense, offset to are higher consolidated support quarter compared by $XX.X decrease lower non-cash the largely quarter. in available expenses. was and results, fourth the our to and expense gross due million stock Turning in quarter was to XX.X% higher $XX.X compared the year-ago expenses General to based in which resiliency organization, business. the in and compared the $XX.X profit by the we This XX.X%. gross continued driven admin million our prudently effects to primarily health of partially million, margin same

expenses to general to depreciation, loss period. X% the or or no XX% approximately income non-cash common dollars diluted to diluted million in year-ago compared net of same the items quarter of attributable fourth million shareholders which the in stock-based and intangibles $X.X was and to revenue. decreased $X.XX share, million, $X.X share Excluding $XX.X equates our amortization Net of compensation, admin per per

EBITDA Adjusted adjusted fourth of $XX.X $XX.X the to business growth. points U.S. on X% same million EBITDA in XXX Concrete the quarter. XX% adjusted million same revenue back to increased compared Waste Finally, basis year-ago $X the to XX.X% margin to In Management in million our increased includes in quarter compared EBITDA the XX.X% to year-ago quarter. organic

our overhead of $X this improvement strong $XX.X strength in growing to up organic our while persisted This EBITDA. the driven decrease in we in asset our marginally We EBITDA of adjusted which containment against results business proud million million, added be drop and slower variable volume is headwinds discipline XXXX within deliver utilization our cost related and U.S. both to COVID-XX than and have strength the segment support U.K. an through X% by Concrete reflecting year-over-year to our about continue the And in in diligent initiatives million continue faster environment. revenue Pumping revenue, in is to business, business, million and control. EBITDA cost agile team's U.K., the $XXX,XXX an to approximate $X.X to adjusted the revenue our our In growth. with approximate was adjusted of continued $X down was the we

as sheet, fiscal as quarter This year-end was improvement $XXX.X QX, Turning a balance in to to cash principal cash. $X.X to in million in net Compared to million. reduced net million debt preservation debt debt $XXX.X prioritize well the comprised by of continue the liquidity and and amount leverage. of driving we million $XX.X in fourth was approximately XXXX

debt near-term no have We maturities.

year charge ABL in debt loan. we XXXX our ratio a place based revolver headroom on have excess term our until And on to instruments is the total December one-to-one ABL continue loan are As in XXXX. believe which five fixed availability. seven-year light, facility significant we have springing December matures a term is reminder, These our and in no financial we covenants covenant

onset cash to XX XXXX, balance $XX.X the reflects our Coronavirus accumulated taken pandemic. preserve revolver. both cash ABL October we availability and the our and total of swift long-term As includes million have have approximately the initiatives which This to the from liquidity, strengthen balance we of sheet on sheet actions available since the of

liquidity the we Our operating concrete ownership to for replace. strong as generate do free focus, allowed working pleased operating quarters, our flows X.X we line in $XX to cash expand business strategic And debt reach us been generate past our approximately With take of ratio cash not and has year-end healthy with margins our goals. customers free we're two to liquidity requirements economic this cash reduce we continues delever strong as invoice very position the we've flows current we as to by capital daily and our times. able and have the as million leverage well Even work net macro minimal perform. our targeted ability our environment, in of our over that

place diversified highly our position accretive typically and equipment in and pursue growth. geographic streams, a variable and continue opportunities Our overall strong long-term our other us to in segment to revenue of structure support invest cost investment both resiliency in

strategic momentum investment CapEx the continued As for brief we've we our over selected Eco-Pan fleet, COVID-XX consistent age during quarters, business a of pandemic. to of height With has period pumping XXXX demand. we stayed uncommitted schedule. since the fulfill some the past our CapEx mentioned replacement to concrete in But have with supported prudently our CapEx the improvements our few suspended investments

CapEx and business, returns. already our we’re unwavering improved investment the reflect equipment belief Our strength of in our delivering

next prudent apply we’ll we CapEx allocation and capital to As accretive continue this other remain opportunistic fiscal enter year, investments. with

We continue impacts continue residential the the believe COVID-XX encouraging that of trends and the well will under positioned and Eco-Pan hold. to to believe construction navigate segment in to infrastructure environment we’re demand evolving

EBITDA approximately less which to net our cash outlook to CapEx, we the full-year million $XXX As range as the against In $XX.X that less of range market and million million. current to resilient flow in such, XXXX cash EBITDA interest adjusted $XXX million define of between notable $XX.X our free adjusted expect million. outlook. our between and to we million, and we reinstating $XXX fiscal are range $XXX capitalization between guidance revenue It million execution is introduction and is $XXX XXXX XXXX,

monitor new financial a recovery With on as over fiscal now XXXX. our performance heading strength to for our strategic we back the pace economic and strong of to the into and strategy turn to provide across color COVID-XX operational I’ll our our the Our that, call year priorities execute some and for Bruce on foundation markets. continue provides additional

Bruce Young

Iain. Thanks,

We’re on financial now experienced where highly year we diversified XXXX foundation gains. momentum remain on and business strong and into share to continue focused capitalizing areas been our market fiscal applying our our in have

or still While overall some or due delayed we schedule are to of our seen and our any COVID-XX customers restrictions, to fitting not impacts projects have delays new major environment. project changes

to the We impacted heavily by pandemic. of recovery within more continue monitor the were closely pace regions that

slower stated recovery given we we U.S. quarter, pace XXXX the last relative continue U.K.’s to As expect its into to

and to stabilization. strength expect variable to we remain diligent going well the continue on residential view cost business robust and area us flow we of focus as XXXX. markets demand our However, managing our makes proactively structure cash reinforcing construction positioned our and for for into eventual the U.K.’s an U.S., In residential

sectors expect to on trends. projects warehouses, experience remain including centers, our and and opportunities healthcare pumping existing new that concrete introduce penetration focused positive will wastewater treatment service plants, markets. our other continue Additionally, among distribution increasing data footprint Eco-Pan, In we developing centers, to to new we

in We're entry. will that new Iain double-digit business year. and further segment we coming As accelerating the the in momentum have look to alone to penetration sustain we allow XXXX proud revenue market for growth even progress the the our mentioned, greatly without us forward increasing during of made

maturities have flexibility X.X for and our that and enhancing now leverage target us near-term fact are financial ahead. near-term place framework liquidity and growth year We greater debt have no at covenant provides light a have we debt facilities ratio our pursue times operating investment the of solid operational improved in to The for opportunities.

to capital taking will environment. organization, approach opportunities our to opportunities macro but geographic maximize shareholder existing markets, strong we're dynamic other allocation increase cost sheet even returns ways we into a variable and that across optimistic allow pursue penetration cautious enter to structure strategy new footprint and highly us this economic given your As our Throughout these our and balance develop value. in growth and

support the forward members plan look XXXX. our With times Q&A. call shareholders of for our unprecedented to like in I'd turn grateful fiscal team over and the and strategic executing on back We’re these to our throughout that, to for Shemali now

Operator

At this with your time, [Operator session. Tim question we'll William Please Blair. Mulrooney is be question-and-answer Our conducting with proceed a Instructions] first question. from

Tim Mulrooney

Iain. and Bruce afternoon, Good

Bruce Young

are Tim, you? how Hi,

Tim Mulrooney

Couple of afternoon. this thanks. Doing well, questions

the to I come look I different. is about commercial know So first to for cycle back. think recession, wanted last took it the years, the market construction every at few I If I a But ask outlook.

you remain think and do the commercial accelerate? appreciate typically then you've the expect you on residential think how for into markets construction do so color we point here helpful. given steady a be or do far. about as move lag thoughts downturn? there it'll So following your Any construction would at And down side, XXXX? a hold is But some slow strong? that Or you to I

Bruce Young

Yes, optimistic confidence through of been the really very get the in the Eco-Pan about not market come within or vaccination we it’s is U.K. get the behind expect too U.S. be as the back, in that had to we and than during And saw XXXX. the not penetration was to the and significantly, market, are lot It's in hold been residential the on U.K. market we And very slowly of quickly. a latest that starting you quite we year. U.K. that will a the that story grow U.S. commercial We with from regardless quite results, more it the portion take the XXXX our infrastructure slightly business, shutdown in telling be continued more In areas in as it's started offset. There first. that the market the so us. we have back has strong through it offset is, the in commercial as it to but business, In more while we on our our affected believe has that U.K. expected. XXXX. I'll that infrastructure the we will expect our coming once to off We're than that of December markets, remains And several that we’re education. through lot activity past. Concrete Pumping projects And on. commercial There conditions. what several lost And work put and bid then expected continue later with it growing in U.S. expect what and continue were for we had far to

an and work the online. well. the several And so of second get the things that put with market, is rapidly administration up those we or the half quite projects market believe the run have XXXX of we for market. infrastructure picking the good non-res the And we're on will challenges. funding we And hearing hopefully in that we'll to start based things look expect have bill second or in back infrastructure being as through hopeful commercial half We're us the about on hold year been infrastructure the

Tim Mulrooney

the government provide is investors for major think benefit through you around to what roads typically Bruce. concrete few hoping a Thanks, could of we're good once like? good will us building was have segue and for wondering provide heating package. my for kind I infrastructure of a if spending unexpectedly other might example, but look unified to and from period know, conversation with definitely I'm help some maybe infrastructure and us question, with that a entering you, That's might examples a up. again, color opportunities you highways, walk could how be I pumping and used there that isn't you is an

Bruce Young

lot Yes, And on bridge is roads so those structures and well. there's structures will highways. of pumping. bridge those But infrastructure, use a concrete as on know, also I there focus

structures. infrastructure of affected And presentation, our investor the from anything that across basically or you'll an and those in is bridge in infrastructure wastewater graded see And have different of our from it's of states goes comes graded an concrete from through largely, all the poorly. lot a is country, very water really how illustration projects. highly there's bill for that us We

there'll enforcement And about Eco-Pan, so excited may there that may And that new as along actually help quite an come environmental be we Eco-Pan that. the along opportunity were think with that way with with I well.

Tim Mulrooney

my taking Understood. Thank for questions. you

Bruce Young

Thanks, Tim.

Operator

W. And questions. our question from proceed Robert Please Andrew with is your next with Wittmann Baird.

Andrew Wittmann

Great, ask I questions thanks. and Good here little a guys. would thought around take just I afternoon, the time guidance.

it, running talked growth about at puts it view. look kind saying in revenues But of basically the already kind you sounds ‘XX. U.K. continue, years takes to for for As like it's fact down by of say some in to soft, and flat margins XX. double-digit the about secular Eco-Pain your it's of and segment,

to You I said inside about the that you? that, the Iain I is, down it's only for U.S. top XX% XX%. of volumes, up the maybe or way suggesting guidance maybe of slightly? that about Is of guess line don't Kind think maybe know,

Iain Humphries

about Yes, how we exactly it. that's think

Andrew Wittmann

a in numbers soft, guess, terms is, and Okay. deliver equation, variable line here, the how whatever to of I as structure harder that the the it just if the you that's wave margin I And cost third costs to little then a was remarks wave sometimes come side cost second relates making even kind wave, you of top the lot by. good address in allowed of talked structures, as having bit EBITDA it is adjusting you about guys prepared the to or guess, EBITDA,

like did ’XX soft, they're if comment guidance, do the do So of doesn't as in there's to If the as environment world the deliver top kind continuing the of they like in think move as kind irrespective you long remain that? to of could feel on if line you nods soft, drastically change, COVID. still revenues EBITDA enough you because ‘XX Bruce into and about come guidance, the of

Bruce Young

say our Pumping with our that that operations within as future. year the Concrete last amount as we'll route density with margins be Eco-Pan you that Yes, business, able into the we XXXX and with And over discipline created costs, our into continue create of we more increased to our that. or see would variable the I

do able I we'll So believe maintain XXXX. to be into margins our

Andrew Wittmann

it. Got

I double-digit you're quickly anything up Okay, pans in pans the there talking Eco-Pan then, on tougher. pans with else Eco-Pan just guess about X% double-digit compares not be growth, to I why here, segment the guess in and there guess in in up the field, field now. double-digits? as the get Is I right the top line can

Bruce Young

would I growth service. thing roll-off that, side, of one about on piece talk geographical heard I you've in to mean volume Yes, adjusted pricing our well. expansion There's the mention as the that pan higher us as

So in more field velocity higher you're we're price count, from but increase there's times the a also bit the traditional the that volume and roll-off from getting on service.

Andrew Wittmann

up. okay. it, else something comes in Thanks, it back I'll Maybe there. guys. leave later, turn I'll Got

Bruce Young

Thanks.

Iain Humphries

Andy. Thanks,

Operator

from Steven question. our is next with Please with question Fisher UBS. And proceed your

Steven Fisher

of you wonder in as anticipate of have what about How the in offsetting couple then U.S. quarter? decline for and first I we a so should the kind in half we quarter of rate the year? guys. is talk over a of well? of that slight the the growth you have you course the the something year-over-year think similar the in about could seen assume that? seen Already, afternoon, second including an on what you just quarters And good business Thanks, the first growth XXXX trends should more first if cadence bit little

Iain Humphries

way think our business we the shift of HX, of as slight a that's typically, them see XX, where, look at do and we a to that in the I to in XX. the pickup see I trends, that's we're the you likely opposed XX:XX of year, back if expect the we might to XX, half think into to again I fair XX:XX higher mean, would in I Yes, of guide at fair pace HX, sort see, is the mean mix XX, see XXXX,

we that, So of as higher see, stabilization construction will the make year, we outside some assumption as in continue. pace you change, so would that mentioned, do of in to expect our pickup is half a And those back in the business markets. there's our organic the

Steven Fisher

point talked And would this stimulus, have to about that for the infrastructure you revenue describe the Okay. visibility how growth for know much potential I the you And the year? visibility? how you at

Bruce Young

tied far expect as too year-ends. infrastructure and year it growth our later we into after our as because we will infrastructure, Yes, much fiscal haven't that maybe the projections, happen in

Steven Fisher

would your just mean much, I Okay, do have you me of or months backlog and how have visibility many business and how can do you this you remind I say U.S. at point.

Bruce Young

So of typically, the year. XX%

see so of we are term business, XX% you typically a we revenue And as to about continue quick know, that through but commitments annual see we and the backlog got. that we've

Steven Fisher

pricing your do just on What How the the assumptions what you focusing Concrete talk rates, like? about your quarter? rates were was you again for bit that's your Brundage-Bone, utilization U.S. And And XXXX? little overall, how in can the and helpful. business Okay, pump. in a there embed your year-over-year

Bruce Young

Yes, strong our stayed really rate through XXXX. so

general in industry fairly healthy. was Our

lot the wasn't build we that a Utilization, better just on there get which in than, more gross a of to didn't gotten, that get in the that us we hours utilization XXXX. would we were for, would And what we puts capacity have so for year bump second in have typical position into expected normally rates. That, have so in pressure half we XXXX. of able than a

Steven Fisher

expectation up, was flat, what for And down? ’XX rate the sorry,

Iain Humphries

probably got rate or The X%. we X%

Steven Fisher

X%? or X% Up,

Iain Humphries

on there Yes, side. depend that will that and market on obviously residential the is mean any changing, trends sort end of

the expect that organic to be business, out. So that how want would to across see we see. plays the But would piece

Steven Fisher

not you ‘XX XXXX? Got in to if I give but for missed sure gross it. million a question, CapEx, this, CapEx And last expectation $XX the compared did

Iain Humphries

never. we No,

net provided guidance in free we’ve and $XX CapEx So cash $XX million, XXXX the not was actually flow million.

Steven Fisher

Yes, thank you.

gross the think I is about million. $XX

So curious offline. to relatively you. steady. I keep can follow-up planning we’re that to Thank see

Bruce Young

Thank you.

Operator

your with from question is next proceed with Thielman Please D.A. Our Davidson. question. Brent

Brent Thielman

Hey, thank you. Good afternoon.

Bruce Young

Hey, Brent. afternoon good

Brent Thielman

if could your wondering more to was and equipment comment resources I move Hey, you around. a Bruce. on little ability

it's that wondering of of and of healthy one do in the I'm of the into advantage to you? you're talking that the think sort unique how just of I should U.S. to find guess growth business you’re the markets ability could does able levers and How, manifest impacted markets U.S. pockets? some where that is if to your in the the take elaborate New I these about I Year. some for

Bruce Young

our truck That's is Brent. Yes, a thanks my for question, mounted. one asking lever every units big of for us,

And very so and drive a little we each location units couple monitor to machines to easily in units utilization most in we into about one enough every can XXXX. equipment. are But, to that. another, of better it. a $X they're move market may of them small more we we But than capacity month, of move We every of our more get out to utilization just have locations see a mile we driven month, of typically larger that from where that don't a currently, have for lot

Brent Thielman

strong And the slowness delays in that of curiosity, have right U.S. the ones which out markets are you versus really which I now? mean, more seen

Bruce Young

fairly for been parts little in little Mountain Coast. have Yes, region so we've West bit has the Stronger markets the in been and a Kansas, well. a the seen as us the strong us Texas in Colorado, in of for softness in Southeast. Oklahoma, more West,

Brent Thielman

staying bidding you've environment, offered competitive of pretty guess, Yes, conducive that into sort U.S. mean to the Bruce, in margins healthy? okay about that ’XX still market commentary thing the and the I

Bruce Young

Yes, it'll and I into beyond. yes, XXXX stay healthy believe

Brent Thielman

into of these we rate Iain should we XXXX? items.com, P&A. back and expect I of out sort the on Okay, if SG&A, guess this Is some run

Bruce Young

Brent around run Yes, non-cash you know, is rate you out take the XX%, items, as all when XX%. the

fairly keep we consistent. that So

Brent Thielman

in that's Year. Okay, the a good benchmark New

Okay, great, guys. you thank

Bruce Young

Thank you.

Iain Humphries

Thanks, Brent.

Operator

next our from Elliott And Please with question. Stanley your is question Stifel. proceed with

Stanley Elliott

up all economy been Hi, you’ve Bruce, bit some Thank Chances Happy I will Iain. taking through Year. rest M&A get disruption the environment. COVID. the little to stimulus from like the start pick are of the some mean, a guys feels able form, we'll He it shape should about way call. or navigate, you vaccines, in the for year. New to talk

flow. are $XX to ahead the If you cash capitalize full million the turn of that try you’re it now the upswing? right thoughts going maybe to call let's on seeing putting are generate, guys about of What work to free to

Bruce Young

for the Yes, thanks question.

of has you Pandemic we the did in our our put on are into been hold position, better the as M&A business big a we XXXX. us, during know, better much strengthen going M&A position past, in part to sheet and So a balance just

now. where we them in get markets to We go sure visibility the get we're some the through we’re XXXX. we'll so of right them, get think in they're want for to conversations But on synergies see value certainly starting interested to And M&A accretive we are place, And that on things that sort expect in out thing. do more right that making the that those that opportunities. plays how

Stanley Elliott

to is that assume Coming all that going or some back like is coming of lower looks to do base, the there kind of of the we CapEx that growth CapEx head is hear piece, to out off a to level build Eco-Pan try some just new would entering love kind where or out, there of your there? into other high markets are to or business

Bruce Young

mean with fleet. as replenishing I in prepared so have growth we we you've our pace in self our sure heard Yes, want to components. make also that keep remarks, And the the three we do of up

back we our you the went that pause as briefly continue. QX mean back fleet. in business, we would we I to of to this and our quickly but investing year, performance in know of with continued expect So

So that in we see would XXXX. continue expect to

Stanley Elliott

get lastly flow does that through or quickly the then start And we bill bill numbers? to year whatever, how infrastructure highway an if do

Bruce Young

that have it fairly hold could put that currently, take If that us. so, quickly put is in to months before the on new it's to states go of Yes, for projects if actually some construction, typically year place. six a fund concrete going

Stanley Elliott

of thanks guys, it. for time. the Appreciate Great best luck. And

Bruce Young

Stanley. Thanks

Operator

[Operator B. from questions. FBR. Instructions] our your next is And Rygiel question proceed with with Riley Alex Please

Alex Rygiel

and New you Thank Happy gentlemen. Year,

Bruce Young

how Alex, are you? Hi,

Iain Humphries

Alex. Hi,

Alex Rygiel

exposure. residential your around is question My good. Pretty

Pumping deck, exposed XX% of identify that Just Is that So your business your your the that or total? XX% for is slide you XX% of residential. business just to clarification. is U.S. in

Bruce Young

sorry, go ahead, I’m Alex.

Alex Rygiel

strengths can bit then business? regional that And a in talk about and little you weaknesses

Bruce Young

Sure.

Colorado. we're, residential important market and it be markets that where have in always U.S. to percentage Mountain us. something But we the a of So higher it's Texas to kind XX% that's the very a region of it's of region would not flows, us and is and but Pumping, new been that is ebbs

Alex Rygiel

sort you it think Could of that XXXX? guesstimate business might the sort growth in deliver of rate you of And in XXXX? will what

Iain Humphries

or Yes, X%. mean growth probably the I X% is rate

for we expect would something XXXX. probably I think

Bruce Young

revenue may over add is would I last months. the end-market Concrete has to of to that slightly, about a as taken that look what the think be we in X% That Pumping, going so in it's total of not I of significant but Yes, shift. non-Res several up U.S. at increase residential

Alex Rygiel

you. Thank

Bruce Young

Alex. Thanks,

Operator

our question-and-answer reached of session. have the We end

it I'll Mr. it I back turn apologize, turn back over Now to forward.

Young remarks. closing for

Bruce Young

report Thanks, quarter for results with speaking forward call Shemali. when We'd look to listening March. we our everyone like and XXXX thank to you first fiscal today's we to in

Operator

today’s you. thank conclude Ladies and This teleconference. gentlemen, does

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

Concrete Pumping (BBCP) 13 Jan 212020 Q4 Earnings call transcript