BBCP - Earnings call transcript Q4 2024 | 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, 2024.

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

Matt. 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

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

Concrete the of company's like to I'd CEO website. now Holdings, have we the Bruce? call investor an posted over the to Additionally, Bruce to presentation updated turn Young. Pumping

Bruce Young

offsetting our everyone. quarters, segment continued year-over-year Concrete the quarter prior fourth and Pumping with in business. Thank in Management our afternoon, in largely declines good The trends gains you, experienced we Waste Cody, volume-driven followed U.S.

U.K., more volume of the projects, our quarter construction. affected rate-sensitive increased expansion start the momentum market pricing. our its the building we in the continue Waste to growth, will our this on up rates rates We challenges improved and fourth impacts of market trends and pricing interest anticipate positive control project higher Concrete commercial domestically, new fleet interest during ability share timing flow but fueled commercial robust high by rates business us the lingering vacancy improve in free commercial to Management cost considering EBITDA enabled followed Specifically, Despite delay our while fiscal continue. In largely and double-digit similar strategies our backdrop. well Conversely, market, sustained adjusted of management infrastructure pumping disciplined strong projects sustained increase held and to the generate quarter. the the U.S. margins cash fourth experienced

of unit equipment proceeds $XX coupled an sheet by with compared year-over-year reduction year, cash strategy, strong in us flow last fiscal recovery free strong balance $XX XXXX fact, million in million from and with reduce positions our resulted capital net expenditure a in expenditure lower our to debt increase expanded leverage. our improving for to combined well year-over-year strength us liquidity, flexible In sale and This further the X% allowing economics, market beyond. equipment in a

a variety buildings, at remain specific given commercial and economic mostly our market. especially backdrop. slower to commercial experience Larger we commercial across be rate of interest market, to Within to projects end Turning durable office continue continue end the softness pace, work, tend to by more light in move but sensitive. commercial comments which a

environment. market end considering resilient, the remained residential Our especially rate interest

residential XX% was XX-month at basis. mix work in the resilient of of a market Concrete our end total trailing revenue on fact, U.S. In Pumping

we continue activity, in and which support region solutions with rate We within buydowns, to investments entice include our housing structural see Texas, homebuilders undersupplied should slightly support quarter. homebuilding reductions of continue believe win We Federal prominent. to where continue in the our creative year-over-year Reserve's and markets expect in allowed commercial in In that single-family end represents the softness, interest market's national infrastructure regions U.S. the the footprint our this is work. infrastructure construction as imbalance to to share more our us U.K., customers grew revenue some construction growth. Offsetting Mountain still has residential especially will supply-demand and to continued, strong fourth market rate path growth

some Investment provide our Act. grow funding address from infrastructure our in will We the well financial expect allocated now I budget of due the detail let in in business I U.K. fiscal opportunities into funding return XXXX to starts Iain? year within the domestically before conversion as the our remarks. environment and to concluding Infrastructure Jobs to results more Iain project as

Iain Humphries

be in in focused Bruce, good slowdown segment my full the construction $XXX.X as compared keep presentation results. and U.S. fourth can within million $XX investor the our supplemental our in markets. segment oversaturation million Pumping certain XX-K. In quarter revenue year decline our Pumping in concrete The our to year compared as million in mostly Thanks, Concrete due is U.S. analysis operating in found everyone. to Brundage-Bone under to well the an $XX.X decrease Concrete on afternoon, was a quarter, commercial was pumps in and fourth of mostly quarter. the Revenue mostly volume prior quarter. I'll attributable prepared to brand An ago same $XXX.X our our year of million remarks the

primarily in segment effects compared million year prior same million revenue margin revenue the operations our due cost the For XX.X% our quarter, translation continued ago X% improvement compared in consolidated decreased million fourth largely U.K. increased for brand, utilization quarter, $XX.X in million improved our driven include was to British compared fourth that primarily U.K. excluding year approximately exchange expense. When brand construction increased maintenance lower by compared fourth pound, the to to expenses XX% Camfaud the primarily amortization foreign to $XX.X $XX.X efficiencies. year initiatives improvement basis was operating volumes The to currency organic the in same due million Gross increase declined Management Services strong XX.X% results. This in from the under General quarter. in repair in the improved $XX.X to volumes. Revenue in XX the administrative in lower control quarter $XX.X our sustained quarter. Waste the and and our under operations noncash Eco-Pan to to due U.S. to translation to operating Concrete margin prior labor year the and $XX pricing. Returning and X% gains increased in quarter. million points to the quarter was ago and

fourth is costs million or XX.X% income in quarter. Net percentage G&A was compared $X.XX compared this a to same were As XX.X% the year in of the and available quarter same prior share, $X the per in $XX.X year common in quarter. quarter shareholders the the compared slightly to decreased revenue, diluted $XX.X fourth million EBITDA Consolidated year adjusted largely in to million to to quarter unchanged ago the ago quarter. fourth

basis margin EBITDA to to adjusted XX.X% in ago XX increased year However, points compared same the XX.X% quarter.

ago million As adjusted the in compared the In quarter. lower million revenue adjusted discussed U.S. $X.X strong $XX.X quarter. Waste our and on control to the our XX% to driven million EBITDA cost $X.X million business, improvement year year same previously, compared million compared Concrete managing approach a Concrete quarter. was adjusted XX% in EBITDA declined fleet. In to $X.X year in margin disciplined to $XX.X to variable And the business, same ago Pumping business, to to U.S. same by our Management U.K. increased for $X.X ago increased in million EBITDA our

ago net same investments. to turn free year we've negative flexibility million million our in in $XX which the flow compared highlights increased CapEx Additionally, $XX fleet in replacement we cash XX% proactive includes the fourth quarter. to quarter, the our further in steps fourth that to quarter This the have taken

we liquidity. of guided testament and of the of net We decrease million of the in which and Xx, growth optionality of to debt-to-EBITDA October XXXX, ratio XX, the liquidity which for year, or $XX opportunities cash a equates XX, fleet in debt accretive the strong overall this as generation. our is availability total is to had strong debt value-added outstanding which M&A $XXX over investment had leverage organic flow At This course XXXX the ABL and of net target fiscal support Turning was of XXXX, to $XXX remain our long-term free a million, sheet liquidity October a strategy. to which our position, investment year. our $XXX balance provides from like our cash pursue includes responsibly of to facility. We approximately on a million million equipment

of credit terms our facilities. Now at the looking

we in in than could year a ABL they September of the have opportunistic notes come in February support encouraging will that although more believe mature an facility of refinance. senior there's our And due Our until momentum market XXXX, XXXX.

Now share moving our plan. buyback to

March $XX additional our XXXX, stock was plan our $X.X for million shares approximately Since XXXX. confidence share buyback growth value XXX,XXX approximately believe average have an we repurchased we and in of buyback or quarter, and demonstrates plan. our strategic to in price enhanced the to $X.XX. commitment have shareholders delivering both fourth million $XX through the During authorized of We our our million of an repurchased initiated

now Moving XXXX into our full guidance. year

normal more million, cash flow, incurred seasonality year million. Please back for and to Bruce. assumes less EBITDA $XXX roughly balance between outlook less With revenue and typical $XX at interest, replacement the to our We in the XX% return million $XXX EBITDA revenue the net free of least and turn between now over as our cash the $XXX range which with CapEx half I the define fiscal to year. million in $XXX adjusted to that, to note that will and and expect first range million, back call of of XXXX adjusted this a we paid be half

Bruce Young

positions in while to XXXX, our equipment footprint, customers, depth that and and we shareholder diversification relative sheet of strategies breadth, to unique growth remained in construction for continued Thanks, the due our our positioned environment investments a we market well and our commercial other fleet. markets In liquidity and challenging market, national competitors given are Iain. proposition to our believe well to end Furthermore, execute softer healthy strong in balance to value. the value superior us deliver summary, agility our particularly

plan, XXXX the through in including are seasonal prudent stimulate we the we As more consistent aspect disciplined will influence, of growth excellence. commercial adherence our coupled cost that with that and can strategic our to towards we on an Equally, our expected and control look construction meaningfully strategy, remain business weather long-term of focused commercial hopeful execution resolute of patterns, and ongoing demand. a leading return volumes operational improvement strategic

that will in increase we XXXX the construction overall will volumes U.S. and in by digits increase low fact, the expect single and In pricing U.K. same.

to combined with seasonality back XXXX policies Eco-Pan predominantly weighted, domestic take road like to estimation pro-growth drive for reflects the U.K., well-documented Iain our government which as can Concrete our productivity these the gradual energy Q&A. that, is administration's in back continues when hold. In half and would agenda, of the seeks As that considers the to projects our and economic to secure now rail and addition outlook the incoming critical the team Pumping our operator I mentioned, also typical With accelerate to easing onshoring the HSX over rates, growth. interest but business new nationally project turn call Matt? broader

Operator

First Andrew question Baird. is Instructions] [Operator from Wittmann from

Andrew J. Wittmann

a guess CapEx wanted in drill here. little just I the bit to on

elevated? bit? are cash little $XX much to the 'XX. us budget think into than purchased. of about a can you you maybe is just do think the was sales So how could under go if million CapEx you the I gross of could negative, help slightly than about CapEx it But I you overall you're how remain for here CapEx more 'XX. hoping break help you How you Just to kind the free going fleets? your us flipped new understand definition. just just maybe down net greater flow to much And going heard disposing thinking

Iain Humphries

Yes, absolutely. And thanks Andy. for question, the

and mean, in we it yes, capacity was to our revenue. invested recap 'XX, so roughly based replacement on demand, the of around had sufficient on So X% less fleet on I volume know, you year, as side, we just the during the

feel around revenue, normalized the what that would of X% good the X% is more have about placed sort that more capacity of we uptime reflective the have is that's guidance or for of we we that with sure more that but replacement into or we've XXXX, the fleet that target Our X% revenue. and and X% making normal really we got expect of that the expectation

through as the to that, we helpful. the again, for starting for I coming look point, $X if million that that's In but -- may million within Andy, would volume year, the apply say, addition the on growth or we will Eco-Pan, consider it $X then but side we'll actually guidance,

you unusual age the mean, side, don't to X% expect We trade we know, as each activity. On that would will about I year. of trade fleet out our expect change.

Andrew J. Wittmann

okay. I of next from senior wanted into, coming notes had now. guess thing comment about there Got to it, a I dig due the you maybe year a the on kind

You you you you're new may the said you're market notes already? sounds to senior ABL? conditions it senior something kind notes? expand like the the refinanced about primary you Or path Are the kind thinking the of allow with about now of since right it would of thinking refinance. What's way pricing approaching that is

Iain Humphries

and we looking have are. for mean, I we're number Yes, obviously, to we execution. available a us best options of

be be so that out, Andy. that we'll so now So to that have year yes, as know, the for good we considering play we some market think good we is Obviously, you think like the the we think a upsized ABL And execution. some elements good end at time we opportunistic see last structural as of window. market momentum right has we

Andrew J. Wittmann

it Got [indiscernible] margins made? And some year-over-year of EBITDA high are is that defer because how maybe getting kind later up allowed as equipment could talk address to major is maybe stuff And that you you how and And then maintenance like the when running buckets labor's that as you into demand? equipment performance, to business. that you. always your of just optimize rates how more repair to further. you if if like you're Could to just volumes you testament grab that starting comment And much the the the aren't just maybe utilization in of helps can fuel? you. things you P&L if you're the tough a maybe so factoring into defer Obviously, drive maybe on well about could as it. for and drill able that Bruce, you on well

Bruce Young

Sure.

to us a As pricing several repair our labor of And for over pricing margin we the to on job fuel that. we've We pricing, managing spare parts the it fuel believe much comes better as of advantage of had gotten had that the better that. And some large able then been last back get and gone previous so seen levels benefit has there's on well. just have within business improve the months, lower more and for of what and before year, to preventative some they become and improve aware orders being we than maintenance serious in we we've issues. top have to maintenance things to take of sure making done out

units. We any at have all deferred on any not maintenance

we're we and like of for So ourselves down feel good rates, margins those job done getting -- the a controlling preparing really future. those we've

Operator

Next is question from Tim Blair. from William Mulrooney

Timothy Mulrooney

X% growth is following at or half a decline like the calling of and looks fiscal of X% EBITDA year, for the full it this So your guidance in about back the XXXX. kind for is midpoint so

like inflection a here. nice So you're expecting it sounds

cadence steady? how the of move it or be Do through curious you this growth thinking is back-end that the you're to as Just Or year. more loaded? will expectation be growth EBITDA expect you the front-end pretty about

Iain Humphries

XX Tim, we ties And XXXX, we mentioned more ] expect and XX seasonality to Yes, that year, in the ]. more front up to you it [ the remarks. [ now on if the that prepared XX, were to our of really more be return half at back look to we normal weighted

us a mean, of obviously, So the quarter through is for obviously being I EBITDA, winter. cadence slower QX

of a year, the in expect least pickup at would margin the build year. through to through resulting So X% the ultimately we end margin

we but some as more the So we it's going through the go weighted back-end likely just year, like be phasing. improvement revenue change to that expect in

Timothy Mulrooney

XX% down you. Curious you're stands utilization XX% you building got currently the with I at mentioned last where ago, And maybe running kind conversation that fleet from Okay, quarters today. or about quarter, target. think of utilization, off of bit Andy, you're having a previously, X

Iain Humphries

Yes, around right XX%. it's that

We go to back your into contribution, as in on margin there's the So we also, Tim, again, utilization there, which expectations an earlier have the moves. demand improve as that XXXX. and it to we we point, capacity think the comes to fleet the think opportunity

Timothy Mulrooney

Okay, it. got

that infrastructure you was the the in for quarter you've cases? to you whether you are of most deployed? funding fourth for large of of the projects cost I grew aside set said to already infrastructure aside good a or projects on which business, administration hear. Moving risk tied both set that the in on, bit or think the see has now But incoming these to this maybe any environment money not IIJA work Do Or some little kind to been got focused they're reductions.

Bruce Young

Yes.

get meet believe The of the allocated some So aside municipality had accelerate but up of 'XX. us, and has it some that whether of And they're awarded may it into as and this Tim. as year see been an we a states -- requirements, to requirements. do challenges And this to projects. for to lessen projects, has those with amount and should environmental infrastructure or have those that pick for to opportunity lot set labor, we of yet. see contractors we been they money those It's the the hasn't been projects, that those

Operator

from The Fisher question next Steven UBS. is from

Steven Fisher

that to what back Pumping we're from sort that to up year-over-year return you normal on inflect that growth now to Just quarter seeing revenues expect there U.S. particular Is Concrete seasonality. follow declines? of again the a positive to

Iain Humphries

back half back weighting, normalized Yes, really close through going that the and to second quarter, I into to that where quarter. third be to say be the That's it's more the more It XX-XX quarter likely us gets certain that the back to I Steve, [ start but end be. third that's would of the expect of the split. would will inflection ] and

Steven Fisher

Okay, of Bruce, trends you conversations that's activity that I just current and the if mentioned, customer after election. continuation level curious while changed I'm mean, of you've seen at for helpful. the did now. And of little a a your how they sort all

Bruce Young

The conversations customers are optimistic. a more lot with the

to year. think were on should results in that now other that half quarter, are thinking things more been see the the And next that shifts half concrete starting I the year that projects. us. for why we're that's we we first Now will happen be put have towards the more several of delayed second that be are are ramping projects hold the into that positive that on think there than they placing projects up that as that of But there had sizable We think well. we before

So we're more a year. lot second optimistic of be half starting about the to the

Steven Fisher

you clarify, certain And pumps there's referring Okay. demand, detail many is in that what that of on markets some you certain sort of it or referring to is markets. imbalance mentioned maybe maybe specifically or just and And supply vertical end both? Can concrete you're too there. to geographic markets

Bruce Young

all this We've concrete but they whether come come Germany. Korea, from overseas, the China, talked pumps before, about or South from

advance. they're so And in ordered always well

industry XXXX meet manufacturers And when or so the growth the we and the level and of anticipated. didn't came had had oversupply that the really anticipated XXXX

expect year. the had this for as we've a lower, for out. into But expectations their did those next and into hands. It play to will are assets. concrete XXXX, that that, will of pumpers' much, They good over year facilities manufacturers of job getting them talked So and out us we improve their they much

Operator

Davidson. [Operator Ramirez questioner Instructions] Jean D.A. from is Next

Jean Paul Ramirez

talk could the third what demand outlook? inflection following quarter, baked are sort conditions U.S. this into in Just Concrete of regarding Pumping's you about

Iain Humphries

own about in administration reserve. for remarks new reshore to to demand -- in I Yes. back think We're where conditions. this starts will Bruce of momentum. momentum. is X it months and into on prepared X cycle improved like project through that optimism I coming We that federal his we're still I and new that think our really the the it really improving manufacturing around like some take mentioned of mean, I and what doing, mean, mean, the

think that we going be to back-end next more weighted why that's it's So year.

Jean Paul Ramirez

U.S. to of Got around mentioned, the the for regarding it. the margins Pumping, in do the And expect this margin Concrete some be fiscal you XXXX? experienced that oversaturating you same given levels comments

Iain Humphries

Yes.

improvement on to compared nice certainly margin consolidated projected U.S. we've versus XXXX momentum in for Pumping. QX some we've in So got XXXX, the business and the QX got

XXXX. So that into we expect continue will

the influence. So we can we margin business through Pumping expect that would this including the year, U.S. controllable improvement on the elements based business actually

Jean Paul Ramirez

Could improvement what you color X% overall? Is a this it increase additional provide looks some into like?

Iain Humphries

Yes.

take guide the mean, just you improvement take about year-over-year. the X% to you If if midpoint compared I -- 'XX, the it's of a

Jean Paul Ramirez

missed jump back what fourth could from quarter to the in I the Waste if there? me it, margins I Management, appreciate about you going quarter forgive to that. And but the big third talk caused

Iain Humphries

that wasn't X any in obviously, really continue to we thing time. mean, expand in It business to I specific. invest margins over

businesses, see slight I business year-over-year. if will about fluctuation you at the year-over-year growth. think as I in So we grew comparison, look XX% for the some mean, we you invest the margin obviously,

you So over margin obviously growth we're going but see small free healthy some a drive [indiscernible] very and flow business part great time. our organic to that that a on continued of margin cash still might

Jean Paul Ramirez

for last X And me. just X

sort What of pressure regarding outlook Do pricing? in you Going see of back margins. fiscal Pumping you guys do any U.S. sort 'XX? to expect

Bruce Young

be on expect -- increases this shifting, some expect market next. that and there some will have until do we that get success additional do we starts with the pressure us. and in into will price And more then the ease -- will XXXX We year pressure

Jean Paul Ramirez

Is see is there there yes, quarter-by-quarter timing case? a of sort is when or just off -- to eases a the pressure a it or timing

Bruce Young

It's quarter-by-quarter.

Operator

I'd turn like closing session. comments. to the question-and-answer management floor any to back This for concludes the

Bruce Young

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

Operator

This teleconference. concludes today's

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

Concrete Pumping (BBCP) 9 Jan 252024 Q4 Earnings call transcript