BBCP - Earnings call transcript Q1 2022 | 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 ending January 31, 2022.

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 cautions regarding forward-looking statements. Cody, please go ahead.

Cody Slach

Maria. Thanks, 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

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

posted on Additionally, the an we company’s presentation investor have updated website.

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

Bruce Young

afternoon, good and Cody you, everyone. Thank

benefit of revenue all is start from a XXXX recent strong we and acquisitions. gain with to segments over as growth XX% Our business to share continue first accretive market quarter in in the off

growth market conditions first to acquisition construction our and to Pioneer favorable of us benefit Georgia, Texas Pumping. areas portfolio strongest and well positions in quarter, the we completed two activity of QX. in the successfully Adding from On the our day Concrete Pioneer accelerated of

Additionally, it business. other late assets provides Eco-Pan our integrated service our into along growth acquired complementary for last a also expansion. year seamlessly with acquisition This have the we platform

capture will core this the safety We clear we cost improvements synergies. terms the leader M&A align able in our point are and margin our acquiring different be to and pursue expected of secure people, at identify integration over companies and to have in earnings have With as experience we – in our industry, values been continue that XX of opportunistic reliability. our we'll with align of to teams and deals accretive that various

turning to individual our segments. reporting Now

acquisitions Pumping XX% infrastructure quarter, residential gains projects. increased driven our US continued from share contribution and business the by and Our first for in recent market

in high single-family experience residential, continue demand We homes. to especially

bright remain We strong our to supply spot into due for rise as expect of to XXXX, demand limited residential company rates housing. even a interest and

funding hospitals. schools, For experienced investments increased plants infrastructure, and from bridges, project sustained as such state in wastewater we public activity treatment

and we level We encouraged Jobs of Infrastructure and local win the are state Investment to will to the at work the by projects continue and passage Act.

additional our the not first are a new emerging While we XXXX particularly around well Infrastructure light year, residential positioned do XXXX our experienced projects we fiscal beyond. and any improvement during from Act construction. modest commercial meaningful benefit in assume In for business, the quarter, commercial with we

more demand specialty for experienced equipment. we Additionally, higher-margin our

impacts continued revenue of prior our environment volume to strong the trends to COVID-XX. are to XX% While the COVID, encouraging. from the organic due experience UK country's the increased experiencing created year are commercial first quarter compared experienced tied we the we by country construction across the – dynamic softness continue growth in recovery of In pockets from segment, to quarter the

is revenue continues our Our increased with business rail sales rail more the last the Concrete Waste due XX% to HSX, for and secure intensive Eco-Pan team's in-person approach concrete execute previously Management quarter, improved to which our XXXX. we the selling. to high-speed energy, ability an project announced, in addition to team expected projects work to beyond road In and

Eco-Pan a in we sales long-term our As reminder, enhanced XXXX strengthen our to team for growth. position

Eco-Pan's experienced quarter inflationary Going expect in continue we Shifting pressures diesel particularly business major of fuel. continued were to to we the growth. the forward, maintain our in to the double-digit side price ensure cost an it only and The done revenue our to challenging are offset quarter headwinds job in first positioned material offset made the and escalation well in rapid inflationary to we excellent the has XXXX. team fully our to rates headwind

are quarter, we executing for As it's to first priorities strategic our of our we XXXX through on rest a continue whether or the in strong position close opportunistic organic M&A. growth

XXXX provide call to return to Now I to the financial Iain, our can I on then overview detailed hand some remarks. would Iain? quarter will over like provide he results. first a concluding so

Iain Humphries

Bruce and everyone. afternoon, Thanks, good

in Moving first results, increased The quarter in are $XX.X to quarter. our double-digit our quarter. was driven of acquisitions, same improvement to million that in segment, to increased a report brand $XX.X $XX.X operating year million Brundage-Bone Pumping XX% and right to compared under $XX.X XX% revenue combination we from million by ago into compared growth ago to year pricing. solid million volume the revenue US organic our recent the improved XXXX growth pleased the mostly Revenue same

US many and quarter Hi-Tech organic $XX.X and to Pioneer, of due improvements. driven pricing acquisitions increased was This the million. approximately Excluding the revenue by our construction improvement organic growth to X% volumes for markets growth of higher by in

million including million XX% of primarily to from and the increased million of and ago recovery $XX.X the $X.X impact in increase was year the same brand, some organic UK brand compared in to growth the in operating The in was US from also Eco-Pan driven volume our by continued our the Camfaud growth quarter. same revenue pricing and under million XX% improvements. quarter first largely the pricing year increased growth ago region's $X.X Concrete This Management compared our COVID-XX improvements. segment, to Services to quarter. the pan increase organic For volume Operations, Revenue $XX to operating Waste in under pickups XXXX due

QX prices us, pleased quarter the consolidated we slower are points is or growth dedicated to diesel our While to a same quarter or in year year we margin our for million XX.X% earlier. to ago order loss To versus first to some -- diesel sell acquisitions quarter these following particular in pressures of inflationary increased of inflationary while compared Net increased $X.X $X.XX the $XX.X by Bruce higher provide and share the was approximately was per service year, and the year million directly net in basis ago related quarter. Eco-Pan ago million quarter. moderate diluted per costs. extremely expense available of a income recent XXX impact typically due due $XX.X compared margin particularly profit successfully inflation. quarter that the our magnitude to our team's is shareholders by discussed Returning our to of increased compared an higher first last The same seasonally pressures the to to million QX diluted compared efforts the expense gross to common in by impacted primarily was to elevated results. the $XX.X wage $XX.X the Gross execution offering. fuel administrative $X.XX in margin million to decrease and General QX XX.X%. in of expenses additional to in fuel million headcount share The same gross estimate labor were $XX.X driven in

included quarter compared quarter. EBITDA union to Finally, adjusted in strike the year Washington XX.X% million was XX.X% to adjusted EBITDA $XX.X EBITDA increased disruption in Seattle, in compared in in the quarter. first ago the is area. the $XX our from million the the year margin same noting first that It worth ago Adjusted Teamsters same quarter to

business has signaturated Teamsters union. Our not

construction recovery to million $XX.X as such $XX.X $X.X pressures compared continued ago Due flow. to exposure million fuel XX% improved Concrete Pumping market by labor million our from effective inflationary UK in performed However, higher same market, interruption and branch through branch positive to construction performance of were responsiveness approximately delivered the the same our million to that volumes being due the this quarter. In was the – of we primarily our reflects business, able adjusted EBITDA pandemic. does in US In compared in cash year the management, team's positive to despite delivery impacted concrete of EBITDA the quarter, our This the XX% strike costs. our year in and to our volume minimize adjusted and EBITDA Seattle ago impacts construction sites. to business, the affect $X.X fleet UK and

XX% business, to quarter. million to adjusted our million $X.X ago Waste Concrete year US increased For the Management compared $X.X same EBITDA in

and to liquidity. The total Turning our facility. $XXX the a debt approximately balance January availability fourth XXXX quarter XXXX, cash or slight ABL of $XXX liquidity the our made debt XXst of million. had uptick is basis we net at debt outstanding in sequential million of sheet on January from due from $XXX investment We includes to acquisition On the had in on in XX, Pioneer. which million XXXX,

to the enhancing investment a pursue overall ability or We M&A, greatly liquidity growth growth organic strategy. have our to support equipment accretive long-term our like position strong opportunities in investment

we continues business invoice generate requirements to work ownership free minimal our and We capital do not our working healthy reminder, operating the take concrete have we flows. daily a customers we perform As the for cash of place. since

and Our and goals, liquidity ability environment. flows line us strong to de-lever in operating free of allows strategic our our with the macroeconomic to cash margins, regardless generate strong expand position

Our fiscal remains unchanged. financial outlook XXXX year

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

Bruce Young

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

organic we to we a segments UK XX% across first to further to growth a underlying revenue and towards as as ahead, XXXX momentum. quarter, we of and year growth, million well is return new through continue all that and anticipate earmarked and have economies earnings $XX to and equipment growth gain delivering US we reset fundamentals XXXX, and a the as M&A. specifically over organic CapEx state of arriving XXXX demand to report The XXXX, that strategic normalized million for half quarter in beyond. second benefit expected is in Last scale Looking equipment. In which shared we more see were pleased gain begin approximately we revenue $XX the

continue of increase team a have very On to footprint disciplined robust geographic new our to We we plan evaluating. the our and enter allow pursue to M&A to pipeline across markets. remain and our us is M&A that opportunities management our approach penetration existing front, acquisitions to accretive in

recovery and beyond market fundamentals activity investment across level the expanded continued expect trends strength capitalize support We come. positioned to market demand attractive single-family housing geographic well our Looking state years remain secular footprint. for commercial infrastructure XXXX, on growing and construction we federal fully to to and

have back for in now I'd call that, work confidence over working across our and concrete continue to turn team business. Maria winning Q&A. Eco-Pan we hard trends the like pumping these to to With With our

Operator

[Operator At with from first a we question-and-answer your is Andy be conducting Wittmann Baird. this Please time, question. will question with session. Instructions] Our proceed

Andy Wittmann

offset moving anybody here I'd from numbers level probably but the particularly yet this the your your said get a the that thought prices by the didn't think diesel that kind higher Hi, in the you about just be business, start quarter you'll this making be prevent would you're would are Good penalized quarter even inflationary I guys. seeing to fuel. fuel you that of in I year. around to for faster the thanks. margins In afternoon, characteristics guys and your obviously start in it comments able obviously. where second Obviously, did

incredible that question you'll the doing right confidence to you you guess offset you what hedged comment in you I are -- changed give to able have So, the Have things? and that now us is of the prices. that be these fact move ability your the through in do way diesel contract? you terms the to manage you Anything can this to particularly write we've comfortable with get seen

Iain Humphries

call. great agreements past. commercial on that an projects, we three-month we being hourly very our for that have And continue to the to time price agreements a market especially prior. goes more fuel is be It the we charge in shortened as may focused up our annual earnings have the than and ticket. to instance closer changed surcharges That's real infrastructure $X.XX, had our We're make what for we're the in question. to and on fuel focused have since something agreements, that we'll our we're had of residential our We've on Andy. and on trying Thanks offsets putting then, there's able additional charge things last get to length where had goes

of try business things inflationary get fairly We good areas. out in. front mitigating that think largely we've all the in done job our really to we're other within are the areas to done that dealing of those of inflation a with So, the we've two

Andy Wittmann

it. Got

the is Or this covered rolled new follow-up these percentage guess shorter how they're to pockets rest year this terms of for it out. being What Just the everything? or executing are new fiscal understand substantially by of of that of whether they've to it? your be Just surcharges? that. terms going you're are got ways Is I to on contracts broad-based finding want these your

Iain Humphries

that. feel management now XX% looking agreements our that on about improve like that we're operations have in place we're to Our and of

Andy Wittmann

softness I here. obviously COVID. some an of it Okay, sounds in great. really piece you're really more trend commercial some of been business business, say shoots but feeling also there aren't that word, coming like one you there's you've that pocket your it pace there's areas like well of the the and this seems back. from side maybe that that But guess during lines then, this And didn't green replaced the the has important

like of parts through the today, quarter, be going the -- second more summer here sit normal to Or business going this Bruce, summer? through still a confident it's to this in is you As you are the commercial you think look construction way is recovery that do going to season?

Bruce Young

be will in I think it recovery.

equipment work, work bid we've it In XXXX. recovering for now. to of revenue we towards our more actually used X% of moved about the what However, past our bidding talked is more of movement in QX, we this use total saw We're and specialty of more than commercial. winning being summer out that in we're is up that equipment had

we earlier confident it get be think don't it will we'll So, we to this -- really were will XXXX improving until where be through XXXX. I But in or back feel that year.

Andy Wittmann

unusually the Was that this on out good of just final to And that was lack one then was curiosity? overall any suggests actually the weather was that me just weather weather question you it. me. commentary pretty for weather probably good. Got say The the would the of -- case that quarter

Bruce Young

quarter. for say would weather this average the was I

in our going deal geographic we're with to the weather past quarter. some with somewhere As we've every footprint, talked

we so in -- was no And this quarter. it different last

geographic think of we really us that. helps so, kind through our And footprint

Andy Wittmann

Thank a you. good Have evening.

Bruce Young

Andy. Thanks

Operator

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

Steven Fisher

there, was but afternoon. guidance the I in give QX Good a if growth seemed updated faster got for total us thoughts you've at Thanks. out than on you Wondering expected year. XX% know could this revenue some organic coming expected. it you bit

upside think you're seeing kind few sort potential there's I'm what could that here? then this expecting quarters of So any come for the wondering of next now? you you're And if out what of

Iain Humphries

Good question. Steve. Hi, Yes.

quarter, of around the said first we thinking what X% that I to You're we've mean, outpaced I clearly, X%, growth in January, growth mean, in the organic the organic the had thought back the we pace quarter. first of right. or in maybe

So benefit that's good mentioned the just taking of that Bruce really weather earlier. the

is the X%. maybe mean, part X% perspective, to organic volume or of now. or It's previously, growth X% probably I So, from we that had said closer around X% a

maybe the that is but where is of the of same, pricing really to gauge we X% pickup coming price say, top that's through. I growth, So part largely would towards gave. the the organic The X% the end

now in pace little So, organic yes, a we right front of is expect. of the the where business

the we outpaced in really So see ago. to originally of a it's what nice thought momentum months had couple

Steven Fisher

of I the there And pockets broadly kind of helpful. within those still extent guess be? Are across and that slower That's Okay. where to customer business, activity Concrete might U.S. what acceleration how Pumping you are you're seeing any seeing and your are geographies base? there

Iain Humphries

the in change Washington, pricing. on largely I and volume the also around volume those specific. mentioned pace just the outside in of Nothing around business remarks that rest our on we is I mentioned expectations, of mean, our volume of

So, management can our manage a I mean, outside changes. to through of Seattle, of great that But areas equipment and the not right our we even really. making would nimbleness volume place say, team through I have area job unexpected done that sure in Washington fleet the the

Steven Fisher

it. very Got much. Thanks

Bruce Young

Thanks, Steven.

Operator

with Davidson. question. question Zane next Our is D.A. proceed with with Karimi your Please

Zane Karimi

good and taking question. my for you Hey, afternoon thank

So, new an your about get replacement your issue you first of replacement to off and parts more think disruptions this impacting the less for competitors Do scale? are any is ability thinking dynamics here altogether? supply with there, equipment for parts equipment there

Iain Humphries

comments from many OEMs. we've mean, Hi. our Yes. different made maybe from buy as I past and you suppliers we in know and the parts

So relying for any not on really provider one parts. we're those

the locations that that cycling at not we're stock inventory, we shipments. dependent rapid can local Now parts have parts through needed of on our or so keep that we amount we so on our do in the overnight

of level inventory to modest to So maintain needs. a service we look really our

quite and need really good chain, buying of in disruption So of we at pricing part in the items that those the gets sure again making front to our thought no well it. when because out meaningful usually needed that supply that timing we're real locations and

Bruce Young

is new but are I the our point delayed way nothing slightly, with What would they has equipment, they expect. Iain where to add that delayed customers we can't to the the been service

Zane Karimi

Okay.

there. to And Can on of an competitors drivers with what Good the strategies Okay. in you and M&A. you're funnel, update to on the potentially this give one M&A us you was seeing for new hear on front, M&A year process? any earlier the commented also bidding regard

Iain Humphries

M&A Our full. pipeline remains

on in really place deals had changed. currently. either. we've actively negotiating competition changed that hasn't always to past. We've the the us with seen some It are minor much We what we so similar very several businesses hasn't Values are really and businesses on for

Zane Karimi

Thank but Okay. Seattle, disruptions for market penetration Eco-Pan? one last saw me. you. And maybe the with can us with Eco-Pan on you On some you update and initiatives progress in the up your of

Iain Humphries

Yes.

So Eco-Pan story really good year. for a has us this been

If have had XX% in was we or near growth. growth remember revenue to Last in-person for it back you revenue difficult XXXX, selling. us year XX%

of In to the it's fact was second so XXXX, well as very half that increase difficult share. and way our it us for

last As we time, folks that increasing during our we're folks really that could meet out summer nearly person our of in with get and sales expanded in period that the done of good a up market every started job where market force. in. and penetration opening We've sales

Zane Karimi

Thank you great. Great, very much.

Iain Humphries

you. Thank

Bruce Young

you. Thank

Operator

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

Brian Brophy

both you what about in Hi. can was little an ease Have, you Good quarter you your is Last seeing things customers. the talk regard? begin side. Brian of for I was Stanley. pretty on mentioned, that Or tightness afternoon. bit that and This a area hoping are for there? to Brophy labor you

Bruce Young

our that to does for gotten here to of year. couple throughout months. last this and of it may seem It's we're still challenge And bit continue encouraged our better the a It improve have business. in customers a

Brian Brophy

you Thanks. full the diesel in are XXX it. talked guys about the embedding you impact quarter And basis What Got then, to margins. point for year?

Iain Humphries

right we've now, inflation I obviously mean, mean, that we're before. at I seen looking price never

pricing forward around is what Bruce pricing in we're really really change along. mentioned modifying So that the doing, expected as go going we the

in adjust the the that initiatives we'll obviously the our part stay we're of of margin change we to really in we the pricing change. that. as first see continue on of initiatives fuel what price good of right costs throughout we've top prices -- make sure that was quarter mean, service as But, the the mentioned to We we accommodate those momentum move. to supply And now. part our in modify the and looking I seen And have we how chain largest earlier,

Brian Brophy

Got I'll pass it. it on. Thanks.

Iain Humphries

Thanks.

Operator

William question your Blair. [Operator Instructions] with Our question. Please is next with Mulrooney with proceed Tim

Tim Mulrooney

Good Bruce, Iain, afternoon.

Bruce Young

afternoon. good Hey

Iain Humphries

Tim. Hi

Tim Mulrooney

are talk business in in starts, side Housing Maybe bit little bit frame to off detail you slowed that could terms of on business? this the start in residential what some they more your it for XXXX? how Can about little year? a the of outlook a year. and the And your you grew expectations

Bruce Young

foundation stayed our still few where would done, and that the project talking been side So demand things the to is strong. customers expected the supplies where the it of from strong stay that in first we we're have getting some through everything us. quite too it There following The we're of us expect out of of be. year. for it impactful pockets been hasn't remainder the to should And quarter to, have a portion the of about got we front there it other but

Tim Mulrooney

leverage was little higher this or I helpful. in on to surprising Eco-Pan, inflationary That's me, on that account the me lastly first quarter And into volumes as to particularly than diesel. Okay. from take revenue for with factors which noticed other pricing environment, well? grew given just and most the faster EBITDA of a Is

Iain Humphries

really always route big of the our strategy. as improves better out is route density really playing density do more for That's been we creating at own our part within our a density really markets think margins. well that I Eco-Pan,

Tim Mulrooney

Bruce. Thanks helpful. That's

Bruce Young

Thanks Tim.

Operator

time now over the call to session. At turn this our back I concludes Mr. would question-and-answer to this like

Young, remarks. for closing

Bruce Young

you. report look our financial like in listening today's call. And We'd everyone Thank forward for to thank we to June. you, speaking Maria. QX when you, results Thank we to with

Operator

today's teleconference. Ladies and does gentlemen, this conclude

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

Concrete Pumping (BBCP) 11 Mar 222022 Q1 Earnings call transcript