BBCP - Earnings call transcript Q1 2021 | 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 first quarter ended January 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 precautions regarding forward-looking statements. Cody, please go ahead.

Cody Slach

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

The which of For annual or XX-Q information, today's statements, XX-K, SEC. revise reference Form including free any on Form whether we forward-looking disclaims report will and with flow, net we events these as publicly certain company On quarterly a otherwise. and filings see EBITDA, uncertainties, or update result financial measures, risks concerning and intention adjusted on information new Concrete Holdings or available non-GAAP also other obligation Pumping future debt call, cash any report the to useful believe today on non-GAAP reconciliations website. measures and information We about our I'd the information release investors. comparable will as in these provide presentation provide posted financial like website. the available available provided measures investor remind press the today's for link to company's via call as further also GAAP evening. be or replay company's this everyone this the for replay be release press in in A webcast the to well later will issued

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

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

Bruce Young

continued XXXX mostly first navigate COVID-XX. operational effects to strength of resilience continued again, at safety your thank time. in COVID-XX our and to commitment remain business Cody, financial I Today's everyone. disruptions. Thank you, lingering their quarter to exceptional healthy discussion team service and once on focuses against our And you headline sincerely good highlight afternoon, our customers and this results to for delivering our families while continuing that We safe and hope our and performance. the wanted

market capturing and our fragmented plan yet We highly to share of market. growing large in continue execute a

highly variable our model. our and Importantly, diversified, demonstrate of regional scale, structure business cost exposure and the our value end market operating

the and quarter During year to U.K. whereas entirely revenue are ago impacts U.S. the our down compared when of slightly last still first before markets, a experiencing year in was the first as pandemic. quarter, onset of COVID-XX the COVID-XX completed we was

a a timing benefit Softness in in value really whereas this continued in funding. stepped including project of and markets have Biden end and hospitals to residential the construction XX%. XX% projects has quarters which infrastructure. commercial and been geographically. These Infrastructure are focus quarters, revenue U.S. discussed position paint is by certainly we unknown our market is that and a to as largely in from continues aggressively from has strength an pumping compared as to pickup several has some bridges, pursuing more this improvement for to election. past more our his in economy up projects a and well of in public only market we business project-heavy from agility a continued. moved been commercial wastewater include in infrastructure recover, fiscal increased is XX% will the that XX% roughly to in prior market are been while numbers calls, residential not work U.S. we of President Infrastructure schools, CPH administration. infrastructure XX%, from end market our point, the increase an our The XXXX, our in across residential And momentum details be offset any the theme as market markets. at clear country to end priority also infrastructure strong of spending, end infrastructure -- well for treatment area the picture our the of and diversified being being prior from markets, in highlights And have since To but by XX%, success supported industrial plants, seeing U.K. is in or

Iain shift our tickets lower also impacted and As variable business not margin of the mix flex this as has will discipline cost address shortly, residential for strength as gross downward. our job in structure such

and Our we our our to opportunities is gain a to pleased driver in our business gross ability maintaining margins unique pivot ability continue are share. while to finding value of very market model,

due For our seasonal quarter usually slower is country waste a growth business, period trends. winter typical QX to our management

quarter the price with on growth, improvements service. with market compared to and roll-off able were when a even volumes, contracted drive However, of expansion continued the organic first construction we expansion our XXXX revenue

We capital the favorable advantage force of strength in environment financial restructure have our in so that took our continue January, facilities. focused but debt be a term. added and we short heavier to markets to sales be in could certainly not what least, we virtual selling to our Last

We closely XXXX. capital our robust us and repaid tracking through trends believe substantially improve refinancing to our facilities. interest costs debt interest has favorable structural lock XXXX, facilities improve year were our rates results, was million And the $XX refinancing approximately time. cash and XXXX fiscal pursue and facility debt liquidity of some loan to profile In million. the following transaction the market a $XX The related have we our -- been term largely flexibility in timing allowed the for right to

sheet, the forward, related By our high-yield the million, fourth we making debt, Going liquidity XXXX our reducing opportunities. $XX accretive annual modification investment be balance overall we our strategic million will strengthening from have growth savings. of opportunities. are to pursue cost quarter This accretive cost interest $XX ability our debt approximately and the bond doubling growth supports and cash average further great enhanced several to exploring our strategy, progress long-term actively a

that acquisition currently more we we are to this for pursuing in fact, about NDAs I subject place later. discuss and criteria U.S., suitable In across with have the will return multiple companies

our year strength, financial momentum remain executing value and on we our and priorities committed to XXXX. strategic Given through maximizing shareholder operational fiscal

he the financial to over color for to a call I'll hand our market like overview Now on can quarter on this detailed some fiscal year. results. provide Iain, Iain? our so to I'd then expectations XXXX return first provide

Iain Humphries

afternoon, good everyone. and Bruce, Thanks,

Moving under U.K. of quarter. compared Concrete right by of markets. COVID-XX XXXX project across our lingering first was that into quarter in Revenue results. driven our compared revenue in slight generated million within in headwinds job We certain same took other million in than were offset We organic ago many U.S. our $XX.X growth decrease impacts $XX.X million modest by Pumping modest markets. mostly operating the U.S. million the the interruptions. more to site volume ago quarter. and was the the and segment, markets, $XX.X Brundage-Bone year U.S. of the to $XX.X brand, headwinds same delays experienced COVID-XX These shape The year

continued our as believe On demand market end we infrastructure the strength this And also will hand, revenue we within momentum growing by as across other infrastructure fiscal as the Bruce to carry residential XXXX. mentioned, market of have in regions see well, and through step-up share. our evidenced our U.S. have multiple seen

market. in XXXX. $XX.X in our under largely to quarter. rollout the And U.K. U.K. operations, vaccine U.S. year currently, ago compared same our more the the $X.X operating Camfaud than is The revenue million in For the quickly million XX% low run was January brand, progressing June pre-COVID in of now We've recovery in from at its and XX% to XX% running our is U.K. revenue in reported approximately March of rate. each this XXXX XXXX increase quarter an at in XX%

recovery pricing volume the segment, rail forward, Concrete Eco-Pan about expansion, under pre-COVID in the project, Going and roll multiyear driven our Management to to improvements, Services in offerings. service are $X.X X% million we market of organic ongoing in the optimistic increased increase million Revenue quarter our same organic compared to U.S. The year share and $X.X levels HSX. our expanded operating by was long-term ago first off high-speed Waste brand, the quarter. XXXX growth,

first excluding the during U.S. reflection our ago expenses QX and and assets Cost remainder costs G&A rate improvement. to million year insurance up in of million amortization of a to This were expenses. Returning expense. certain margin expense, gross prior was related same $X.XX higher primary the transaction. $X.X The on in to a decrease The growth of to to share margin year $XX.X the typically first consolidated slower a million quarter, of administrative attributable loss million slight place our by loss make quarter the onset is same compensation of million revenue in growth. in primarily reopen, put same or to was double-digit and diluted intangible in Bruce XX.X%. to $X.X net per $XX.X extinguishment as lower related loss shareholders the containment in intangible lower our amortization $XX.X volumes $XX.X compared million we was of assets quarter. noncash quarter. the net timing year in and to of was When common January compared quarter. year-over-year. a quarter gross of improved is markets stock-based Net And available share the expect to compared approximately XX.X% profit General measures compared million or approximately As to loss $XX.X QX was compensation COVID-XX of the $X.XX stock-based return results, XX% the diluted mentioned, to the driver would ago due in in the the to to as per debt continue ago refinancing of by expenses well $XX.X as improved million

quarter COVID-XX our ago $XX.X ago our market, the same in onset EBITDA $X.X EBITDA was This being volumes the place U.K. containment to effective million same adjusted ago our Concrete related quarter. X% Pumping margin particularly the in $XX.X to the XX.X% by lower to EBITDA In U.K. compared same compared driven when was cost the recovery project quarter. million is Adjusted work. million year first delays, year in adjusted Again, adjusted XX.X% to in to primarily business, the continued million $XX.X and improved the $X.X at compared year in put business, ago to quarter. measures million $XX.X in the EBITDA reflects year the commercial same pandemic. revenue of quarter. of Finally, was In the U.S. in this compared million

EBITDA line $X.X in adjusted business, Management the at Waste Concrete million U.S. with quarter. largely was prior our year For

liquidity. to Turning

financial fixed at in we favorable rate interest advantage close million successfully at of in momentum from The a XXXX. notes lien As that mentioned offering notes $XXX of earlier, private and mature interest bear to a annum. second environment the a our per issued and of par took were XXXX secured X% rate performance senior

the the replaced restated and existing which credit proceeds, facility. expenses. under used amended pay up outstanding indebtedness and agreement facility, provide $XXX loan with or fees offering prior our of to of the million January and we total XX, committed to were ABL repay debt $XX $XX of XXXX, refinance million. At fully outstanding facility we addition, million debt million net prior ABL term borrowings along million agreement had $XXX.X related under In $XXX.X The this upsized and approximately to commitments, of all

on had ended liquidity from growth ability our opportunities $XXX.X XX, October of accretive since our As greatly XXXX, pursue to million XXXX, XXX% year availability increase our This our enhances long-term M&A approximately and of like and and balance overall the ABL end reflects strategy. liquidity, support in January investment a in cash we facility. upsized which XX, sheet the includes

current and we free schedule, liquidity replacement improvements us strategic goals. healthy generate critically our line have consistently existing for our we to concrete In with Our we ability strong cash important our cash ownership of in operating line fleet to the since This and and flows capital making take been strong the margins not generate age. reasons. our customers business expand we free We minimal requirements continues to macroeconomic we allow Even our with daily working several delever place. our perform, have work do is operating position the environment, invoice through to pumping flows. concrete CapEx for

employee with we fleet, and and costs the repair Also, and our new our which lower of enhanced stimulate customers. improves enhance our reliability the capture to age safety equipment, helps opportunities attract we the often an employees qualified for repair inherently fleet improving by wins First, of project helps retention. time, down improve

Pumping the and segments. and periods. in strength investments of in of also capacity factors Concrete confidence business U.K. ensure our combination uptime consistent optimized cost busiest critical Our fleet in our have our The across repair and is the we These fleet improved outlook. performance underscores are U.S. equipment equipment driving during improved margin improved our that

progresses, investments. we continue capital opportunistic XXXX CapEx As with will and to and allocation remain strategic prudent apply accretive

COVID-XX as our year with unchanged, and Our our remains line continue outlook U.K. the were results to U.S. in and financial markets expectations XXXX recover disruptions. first quarter fiscal our from

range of $XXX million And we between free to $XXX previously a full adjusted revenues define cash million Operationally less As to will financially, $XX.X Bruce. which adjusted EBITDA back interest that, between to range expect our million, reminder to range call remain between $XXX growth released and guidance, our net and flow, on our XXXX cash $XXX CapEx EBITDA million. strong, million. are With less and we we we to year million as over $XX.X and the I actively working execute strategy. now turn to

Bruce Young

year. for us pleased remain are through organic M&A. fiscal rest with first Thanks, and quarter on growth scale our focused our and our driving on Overall, set trajectory Iain. of We of XXXX, the has that the strategic we

will we underlying normalized and XXXX fundamentals gain and see to which reset further a in U.S. Looking as be the a state a we year ahead, return U.K. momentum. believe demand more economies

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

regions We view U.S., construction to XXXX. the an that the our forward continue closely continue within expect residential we In pace robust we to of monitor business, for to the by in more demand impacted remain residential's recovery momentum heavily of pandemic. strength and going and area were as

accelerating construction anticipate are of our widely will we distributed. require and winning remote commercial regions infrastructure trends Additionally, construction, resilient, commercial investment are experience working infrastructure industrial and remain positive following work in in we will Like will share. benefit increase and heavy and a taking more be these and that prove other anticipated from areas an continue to comparatively e-commerce in investment. projects increased market there today, some COVID-XX that challenged In expect we within expect will retail warehouses Nevertheless, vaccines we data trends until centers. are continued

commercial benefit expect light Over from we single-family term, effects activity the collateral trends. strong attractive longer will of residential the

residential activity been we is believe capturing expected, a commercial on was end of share to we have infrastructure while and disruptions, intentionally due has Eco-Pan, light and years diversity end pandemic-related and track focused the this COVID-XX testament our Additionally, this come. markets commercial no despite service the additional recovery on and to in We as look strong we driving to momentum what focus accelerating will our forward scale, greatly to challenges growth customers our ability matter our market. In to construction. the in

and have solid foreseeable years place We the a financial ahead. operational in for strategy

investment liquidity, improved pursue greater facilities provide to and for debt balance flexibility Our accretive opportunities. sheet us

markets. footprint opportunities we M&A our earlier, mentioned pursue new penetration As to increase accretive geographic existing plan our across and entering to

M&A We you are progressing well of remind advantages targets. platform. acquisition structural with would our like multiple I to the of

and we few integrated years, of we acquirer the successfully completed confidently transformational our that several deals as are the far, First, choice. within the say with player can largest and field in acquisition by last

prior million calls, adjusted identified. of we pipeline with strong EBITDA additional $XXX As have on acquisition mentioned a approximately

investment have we that X.XXx purchase Xx the We consistently for acquisition in our marketplace price acquisition opportunities that typically value. pay criteria, clear or been a that meet equipment the equates EBITDA to for

deduct meaning benefits years by that other the EBITDA equipment financial a a track M&A optimizing purchases, to for typically few we within first the as depreciation are of also utilization, purposes. synergy discounts the transactions highlight supply our perspective, is it important Given structured OpEx delivered tax value, have XXX% immediately record asset from adjusted From of and margins we chain increasing scale, service synergies.

We and strong us The maintained maximize clear. to back to to and well strategy our the for call M&A look and sheet and business actionable turn relationships commitment balance to fleet. opportunities structure our Paul? acquisition all criteria to shareholder great like variable now customer cost and a and management, this pursuing we meet Our that, execute will With plan, grow I'd organic as attractive growth plan. optimize drive allow take operator the of to strategic value are Irrespective varying purposeful returns maintain we our Q&A. on of criteria. appraisal highly strong is our these for steps a highly

Operator

[Operator Instructions].

comes Tim question Blair. first William with Mulrooney from Our

Timothy Mulrooney

of couple A questions.

implies I'm curious of in XX it the So last the guess, looks year margin, it first in like 'XX similar last the basis margins of second about but guide EBITDA of fiscal to versus like like actually half With second Because just first year Is half points 'XX. on kind about guide, the were full EBITDA your fiscal year? year-over-year looks how what you're saw the I margins quarter, margins midpoint half? we up good year. in be very to in remainder down it thinking the the in for pretty down

Iain Humphries

Iain. Yes. Tim, is I'll this take that.

you So as the not of relationship between in of on and linear revenue, with see between that there's mean, XX volume our trends the a HX pickup typically seasonal HX, on yes, I XX, the -- the cost. and growth

do the improved back seasonal step we up margins the see with trend. that of in higher year half from in typically volume So that the

these in year we typically when QX, that as through see. the just this heal, pickup about But that bump year. in we'll margin a last the financial we that reminder, we didn't markets talked Now we see seasonal start will this get expect, through to as year,

Timothy Mulrooney

Yes.

material labor business seeing anything of yet, makes the you really? That on or Okay. inflation either signs else guys the the side any side sense. And in are or

Iain Humphries

structure cost mean, of the we that way And I piece. inflation break the down about I you sort really. Not think that Yes. if the have.

got, of that labor. is cost footprint look you at the that the if component we've sale of largest So

we we're that wages area situation will we something pay, the our is inflation an employees. So obviously, base not concerned annually that employee relative and the to about, and that with adjust the

things watch the of outside I the in we obviously, fuel. employee base, like changes Now mean,

and always Nothing nothing you that supply fuel that in about, we're concerned incomparable. as But those would scale, an out put normal have year-over-year. escalators some on. perspective. unusual probably purchasing chain, the the the are inflation from processes fuel call maybe is surcharges to we from price areas I becomes our X And Now we know, area place with if a rest competitive of an look

Timothy Mulrooney

Yes.

know you you for the of Texas know hard. Okay. there acquisition. I amount storms a decent got And just And assets I And down X more maintained guidance. the pretty hit me. capital winter after

possible, So if can those it, for had it, on that your expect walk us talk how just you us, storms it? quantify the through winter you're thinking about impact about you business? maybe Or

Bruce Young

Sure, I'll Tim. take that.

into weather you kind our as like we've with X we factor our footprint. very QX, impact we hit especially. the we our QX look it has at and And we We're And know, and in outlook or the we -- business, resilient area that hasn't as strong of that do for particular look from So in really have. ourselves our at with getting we geographic diversified changed. we footprint still feel that QX -- that in

Operator

next comes from Thielman Brent Our with D.A. Davidson. question

Brent Thielman

that operations, But year that quarter. U.S. is to Iain, anything the on you or year? and which from up date, anomaly. U.K. the that again last pickup seasonal Last maybe see into following an obviously prevent this doing would Bruce there was Typically, question. second

Iain Humphries

to of we to getting U.S. picking U.K. is year slowed that in more people QX light the it stronger. it we the last And last back now there's sites had labor and in and would of us over sooner will I markets end place. was aggressively much think QX see down a because lifted, for -- some will restrictions month, will up work the When were just difficult we the happen than on the get that year. say that ones the the maybe be they're the does expect that become in tunnel projects by at of than What we're of Yes.

awful no there the were geographies You there's no demand. markets pent-up lot an of might overbuilt, that remember pandemic, were prior still and that to end so or

get we back people So work our that will markets nicely. rebound good feel we to very once

Brent Thielman

Okay. year-on-year what's And slowed Can built from And through mean guidance on growth what business year, you a fiscal little you've Why about down for had of tremendous Eco-Pan, this bit year, got this sort this within happening at perspective. you've through bit more least a into quarter? lower all quite that? I just talk last year? the growth that a

Iain Humphries

we had Yes. It's not last as been year-on-year what up experiencing. year, however, over much as

that it cleanup which challenges is One Eco-Pan than do of on other to difficult converting more system, is had that virtually is site. the to of methods our has we're

offices that. as we still those we accelerate team the open with to mentioned them ability we what do, And in offices that show to script people that, that up, several and growth. have so about We that the we've Eco-Pan. and into our help we value opportunity of feel hired our more the And good in sales accelerate get think will very

Brent Thielman

last to of mean, some cost impressive Okay. I that going you're see expect And can see in quarters. see the expect terms much to to Or Can some, what in how even start business be or the one, I we talk that continue would we to coming give in leverage to is growth And you start to presumably, business can here better return? think, actions to have the margins. to healthy the just in see? going back you defending growth really U.K. about as

Iain Humphries

the volume. they right. really mean, with pre-COVID had the that great Yes, last can our opportunity this year, And as I tell prepared progress you're market think as recovers. growth from the that provides organic you remarks, effect of making for back getting just year nice some they're to I it

obviously, the containment will onset a of pandemic the at put we help from that measures on perspective. So cost the margin

recovery to margin top do that and the pull on the expect you'll through, also So see that both line we as on performance see well.

Operator

Baird. Andy Our with next comes question from Wittmann

Andrew Wittmann

Great.

little I guess to dig wanted on just a commercial I side the bit. in So

the those and delays. in here you've macro? Or on still they given script some the the cleared? seen are I slide delays Are continuing think you mentioned that

Bruce Young

are that there delays The and are hospitality. to really more still related transportation

of some still are And -- those projects of most on hold.

centers we're and sort using we're that acceleration and specialty booms sort thing. centers, thing. our our and office Now data seeing buildings what in fulfillment where have few quite do placing equipment, And of market is slowed pumps that we has going or of high-rise story fulfillment put building of us kind an To amount concrete center, Amazon some. a for same has say, a perspective, That in it fulfillment same XX so the revenue the as, about center, like of would have. a

we saw So have the the that on there. still segment, as do transfer still from about segment where other recognizing of the there's hospitality great concern track And opportunity we're to we one we it. back timing some getting

I think market uncomfortable end about. a little still we're that's that the one

Andrew Wittmann

I'm Got Are construction? like Or projects curious of then in? just as for are the to the dug construction, -- are is they it. types that. are just they're hole hole the where coming kind for stalled these guys of along on need getting they I'm waiting you way. to curious, and these still dig out

Bruce Young

Yes.

most them, that is the start the of as So they'll it's yet, hole have but several where dug ready. as some freed up are isn't There site construction. that soon we

Andrew Wittmann

just things I couple then wanted And here. to of a grab Okay. other

about kind $X.X that feel -- in remain cost quarter those to related you balance relates it due the open million this actions $X.X taken SG&A you as to was things of the on million do anything actions was like Or to Just for of the unusual savings as in think that more benefits, reversing up? itself that it COVID. Was year? I can be there quarter that place will in the number have said

Iain Humphries

the in actions year. for yes, Yes. the place those remain balance Andy, of will

year, it could will and deferred this it business. certainly not It We there where that be term year. eliminating for be but permanent of also full in got some that cost the will the last effectively was we

that you'll come through through So see periods. -- improvement come for subsequent the that

Andrew Wittmann

just And the Eco-Pan. question talked of you've the to past, back might the the Super Okay. number in of then leading on field there. And pans just indicator wanted my about growth was a in of kind as just be helpful. rate what -- last

optimism of balance wondering the if here what for was year. in Bruce, I the growth, number and the need you that's for telling of case? about But do field support I So incrementally about the rate getting heard better to the the the you that just do pans back get to great. comment things on today field that? to in be growth the double-digit could pans is some you Or

Bruce Young

we it In for -- thanks line the March, question be. month that. with back the be on Yes. month to in out we're This call -- in starting the where expect to

we And so field that we're where to service back pans be. we off us the expected quite place optimistic get that roll and new to the in in the put will

Operator

[Operator Instructions].

comes Our next question from Stifel. Stanley Elliott with

Stanley Elliott

know fair last you utilization in within of year. as I the a spent amount guys that a On Eco-Pan like had that business, maybe you about metric. fleet kind talk could investing

what's X% to of trying from exactly see standpoint kind with utilization growth. the happening Just a

Bruce Young

Good question, Stanley. you. Thank

truck, dollar the thing. utilization utilization on Eco-Pan So on per track more that the we sort revenue of business,

QX. We added more units several have in

QX, we improve from as the expect to but out so it in builds was service And continue to over that where is year. utilization down the

Stanley Elliott

the lines, I are in net very CapEx parts That's basically the the same. interest And guide helpful. mean Perfect. I you held CapEx, along X the CapEx. guess, moving

piece what sort investments to CapEx you interest all that the up? to make? is are the that's projects or are net if actually going With of correct, looking going down, assume we And

Iain Humphries

Yes.

consistent be I'll maybe it the will I first. year-over-year. take mean, that CapEx, So on relatively

there On variable LIBOR. that. in provided now cash was we flow obviously, we'd factor the element the that And interest, free when was guide. the I mean,

interest perspective. $XXX,XXX if an or it's or that's So from XX XX $XXX,XXX bps,

was So mentioned. given you within that's it's Stanley, from X we've we perspective, break not how implied parts, that component that the an the the -- that would so interest that down but guide

Stanley Elliott

mentioned on And infrastructure seeing in in love you're regionally momentum terms Okay. growth. color get bit little the some markets, infrastructure Perfect. a of you're seeing the you side. some where would U.S. where of kind the of I to

Bruce Young

Yes.

that last may a know, last always we started of all areas infrastructure infrastructure we types of in job in you focus that from to on And some good projects and on And just there. a infrastructure very been markets our projects spring of were while out So focus improving We we market. of morning every our strong we've our regions has strong. weren't picked as needed we and commercial done when I one a recognized this team this that the received report all revenues. we that up, the

Stanley Elliott

talked you where me, sense for kind kind about size potentially you from Just come of pipe. end to leverage that for potentially M&A flavor down a of active. lastly, get Any then And Perfect. next the would the the for standpoint? deals to very year want of being a pipeline

Iain Humphries

Yes. long-term from leverage of end at we the year X.Xx, we've ended year, I and publicly I said last that mean, target X.Xx. the our at perspective, a mean, is

true to So stayed the mean, we opportunities component piece the size strength of on would delevering investments. we from I committed Based expect we at our that looking a when we be accretive and that to at, -- there'll I the sheet. balance that mean, look of we're

that don't to business leverage. expect long-term we So our the impact trajectory growth of of

Stanley Elliott

free maybe pipe? being I'm sense you piece? terms I opportunistic of the half you're turn down looking to of a there. trying a comes aggressive if to the right get just Or of do that's No. a I flavor cash, million trying M&A with was to for just that's mean, get leverage it. look, how in get just what for $XX

Bruce Young

get put is we're ultimately, businesses as what EBITDA X.Xx. Xx where they're opportunities come us at synergies do, that buy for in know, you with trying to other that place and and still then to to Stanley,

same keep and we the one leverage and improve worst, should, So the integration. at acquisitions the on synergies it these how of well do depending with every

Operator

Steven comes question with next Fisher from Our UBS.

Steven Fisher

wanted impact higher of kept upper towards trending of your end range, February, in same, it I'm absent coming kind situation impact? might towards Texas you any to curious, X trending the been I the the if just have kept just know to Because know back start you off have it been I'm guidance wondering really the but -- it in if you in did end. might the I I mentioned you But I guess have resilience. February.

Bruce Young

Sure.

with came for a out we QX momentum. QX shut down good very certainly, week. and Texas in of were into we So And about

soon as rev there much were what than going catch they up. the weather revenues broke, were some as our the -- larger into However, were

by encouraged markets we position very our for all that. quarter. we're And of remainder in of markets the -- see this are so And fairly good the

never So recover to that, quickly. feel like weather deal resilient when we're it very by can -- like that, like with and very we still that's while we we're we where impacted

Steven Fisher

What backlogs? you Great. actually seeing Are their seeing And down? they in from they actual you extent Are you Are into have then customers' up? customers are to their your what backlogs? backlogs visibility flat? do your or hearing

Bruce Young

Yes.

is There end the and optimistic months, where that a by market commercial see. for very have customer region. the to But residential share and So as X business X%. and next very what about our by much over varies difficult others that infrastructure of but still typically by are you has track concern. overall, extremely are by that, some our taken some see, we business, larger about It's

Steven Fisher

able us utilization your your are and the year-over-year what to Okay. give pricing quarter? And was year-over-year then you in

Iain Humphries

effect January, the pricing picks I consistent go adjustments you pricing first Yes. through quarter pricing. obviously a know, our mean, from it's is year, up X% the in through mark, which for around as X% looking and year-over-year. XX% on Utilization quite usually or mean, and into the we're perspective, I

Steven Fisher

we turning it kind sort there about moment? making on Is And process, you seems something Have something point M&A conditions? market were Okay. that the that's M&A imminent at hit going in the talking call. of then lastly, just of more more this like some on in

Bruce Young

asking for that. Thanks question. Great Yes.

have go balance with in wasn't been of we able us So really with right still that we the successful uncertainty, this to focused would year pandemic quite some last a we And Any that we were really last where for that. nice sheet. put on the the and led that January us. are those debt last in to that M&A, were restructuring there year, there accomplish year, after year. decided the And opportunities that to position move

In fact, there are more now.

to very more we after our are going some systems, they'll have sure our easily be meet be of M&A selective. integrated we'll year. We'll criteria they this expect that, but do aggressively make into we and that all and So

Operator

Our last question Blair. comes William from Tim Mulrooney with

Timothy Mulrooney

expense $XX Iain, for that provided, that expense the you the expect is is cash Just annual rate? you annual on interest interest that million, a an Or couple run more. 'XX? actual fiscal

Iain Humphries

That's what 'XX. fiscal for we expect

Timothy Mulrooney

Okay.

So X even more. lower here, I'll for ask 'XX. or while I X you guess got you I

to time. answer sales that said increase infrastructure decrease if bill to And think you remain pass your now or were does expect or all? that pretty an of over year, guess, I change I you this at infrastructure static? would is XX%

Bruce Young

Yes.

it slightly is If not up substantially. infrastructure there go is that an if go will could an think I up infrastructure bill. bill, there

Timothy Mulrooney

Yes.

all, for your Okay. lastly Well, just Is CapEx? me. of of it maintenance first XX-XX? is much CapEx how And

Iain Humphries

No.

So have around around said we've we spend typically -- what that we CapEx XX%.

said replacement around an of But in keep growth We on and split growth. we sort that Obviously, opportunities XX%. business. it's haven't consistently, between eye the have we'll the what

Timothy Mulrooney

Okay. fleet of the like over couple And Can say, average maintenance sounds CapEx fleet the guys. age, you any about a lower guess, ROI How because very spend you -- I for I age, in I this mean, which the years? has guess, for the benefits all quantify actually, last of much talked you good way? us improving

Iain Humphries

of repair maintenance precise in mean, on that utilization And time, statement. the that repair through lower on we that would is share down uptime. obviously income improves for around -- we and terms about cost within cost publicly. we line come mentioned Yes. We improving the our can't we be But way what think it all the things it I of the which

that organically area there's fleet. definitely investing in benefit to in a So the

Operator

like to are would over closing questions this I back to There for floor turn comments. further management the no any at time.

Bruce Young

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

Operator

This concludes conference. today's

a Thank participation. lines time. your at Have evening. your wonderful disconnect may You you this for

Concrete Pumping (BBCP) 12 Mar 212021 Q1 Earnings call transcript