ATCX - Earnings call transcript Q4 2021 | Atlas Technical Consultants Inc

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Operator

Hello and welcome to the Atlas Technical Consultants’ Fourth Quarter and Full Year 2021 Conference Call. Currently all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, David Quinn, Chief Financial Officer of Atlas. you. Thank

Mr. begin, Quinn. may You

David Quinn

have you us. the of have today. this hope updated Investors we you call, which found of joining our Thank Please presentation earnings in support that close section We oneatlas.com. seen market release that the our an at be for issued in posted also can note investor after website

recent goals, filings the would Exchange of statements. call statements that begin, the may I statements. risks like assume strategies, beliefs, which and may describing and by reasons, anticipated principal forward-looking publicly we you with forward-looking today’s identify of from to Commission, forward-looking We to results. differ forecasts forward-looking Before that the variety prospects projections, statements uncertainties Any no include statements. our our beyond business are many obligation results affect and our update for that our future plans, could expectations, remind those and are Securities a see such which control. company’s assumptions actual note Please any Please

our net and addition, will and see of be turn discussing or adjusted today, including Executive I now to comparable EPS. providing Joe Chief adjusted In to these filings Officer, release the their adjusted for EBITDA, measures Boyer. we a our measure. EBITDA non-GAAP margins, non-GAAP earnings financial Please adjusted call directly GAAP certain will measures income reconciliation over most

Joe Boyer

robust our our including acquisition was and debt before continue everyone we we provide delivered an financial overview results call this the leverage for quarter expanded quarter David Thank which talk strong for results fourth reduced cash joining had today. I’ll strategic discussion the to with up open afternoon. questions. our And EBITDA balance strong and flow our Atlas. call, of you, generated us end an We priorities, fourth David. of year growth, margins, will TranSmart, announced The XXXX I exciting about a On the of appreciate and our ratio. today’s and outlook

quarter, record of award history, the We we all fourth the XX% to and seeing EBITDA XXXX, growing and services the growth with fourth both year compared adjusted and growth XX% delivered position and our us key to full quarter of across over the This levels. In for markets adjusted XX% which growth also revenue record in end to demand of XXXX quarter including the ended XX%, our respectively. in as a we’re the revenue nearly combined company’s well led EBITDA backlog, with beyond. largest

growth factors, Importantly, both by and quarter externally. driven of year combination our a was and internally in the

all acquisitions. continue with recent cross-selling to in see ongoing robust our been key We end our to of we’ve enhance which able demand areas, from contributed initiatives service market

We cost And implement have with to proud will adjusted even continue delivered and pricing EBITDA pressures. these to increases cover to margins. expanded transitory I’m we say, labor headwinds,

entered expect actions strong margins XXXX for winning on scales Been flow. further in as business and improvement footing. a our very pricing work and We quarter solid our these

Our fueled lines. was fourth growth this of and by contract environmental XX% new new to infrastructure the included again $XXX and related to a service all level up And in of quarter compared rose XXXX. growth end record major backlog, awards, million,

feat record as quarterly level the we revenue. in had X.X of a times, quarter book-to-bill Our was impressive an

historically provide is Westchester our and the direct from West largest Station MTA $XXX converted underserved Atlas that the Manhattan’s service we One to Penn million have large Station the that Connecticut Metro-North project. the providing in contract connectivity quarter Side, in portfolio history of to I’m communities. Access Bronx, to York New in proud and This and projects the award will Penn

this on the and this WSP including capabilities a project build is commercial design We to technical management, and project provide team. oversight, with project integration great the of obtained will acquired management and management from construction resources a oversee companies. operations services management of synergies are revenue through And design in JV example

the and related in large these thousands marquee drive into we Our significant technical portion risk built of while business projects based work. the winning future integrated our projects utilize as cash to that of in to success customers are value added and large addition broader, our predictability longer-term, visibility professional revenues and have an directly the service of growth for is and projects providing full our capabilities, backlog, foundation one service and we flows low These enhance a smaller on account to Atlas.

provide $X Another is of a technical long-tenured growing of them repeat five-year million announced services project activity. services. remediate ConocoPhillips environmental petroleum type soil great associated oilfield this and to recently portfolio we example with our continuing and groundwater ConocoPhillips to to assess the contract look impacted with and legacy forward is we with of client

Now have beyond still nearly of that million pending backlog, awards are current execution. $XXX our we contracts

drive and fundamentals public services. Secular we as private safety, into our clients, Atlas been I’ve sustainability, environmental, among such as nation’s trends about aging infrastructure and driving for ever the remainder optimistic of business. both the as demand continue here As and on workplace beyond, look focus of to XXXX increased our the outlook and

that begin see to acceleration infrastructure we’ll trillion of XXXX. funded in begin XXXX projects materialize $X.X optimistic to Additionally, with the Jobs we’re and late investment to Act

strategic me priorities let XXXX. for Now our discuss

many across for years is in infrastructure our Whether strategy. environment, to customer other We’ve we company. base technical and investment we’ll service footprint our services, opportunity the safer with to services remains cleaner offer smart come. on connecting First, diligent work from meaningful our offerings and the had and broad from diverse our fundamentals to ongoing market positioned work a we’ll strong capitalize to continue utilize and Atlas need to organic to of all protecting and our But live they cities, it’s new uniquely continue and our cross-selling success places benefit national drive making growth. in existing or

we in Systems Atlas our portfolio. software plan the and as leader the announced effectiveness we XXXX. TranSmart, we within Vehicles fits grow Second, to are we and XX% Transportation the the the services expected as that M&A cross-sell the drive new acquisition critical Connected well existing at portfolio, technology to continue well strategy. of annually Autonomous as the Intelligent space, throughout least market This the will of of and example provide This to Today, through great is transportation improving our infrastructure. how is to a efficiency acquisition

company’s in other was we to focused been expertise remediation. transportation a key relationships we’re business on York, Georgia, Midwest, TranSmart leverage Midwest, markets strong have California. where confident our largely access TranSmart’s New regional in the customers predominantly and the in Although Further, environmental the where business increased such have we Florida with the as we presence, has can technology-driven Texas,

remains Our M&A active. pipeline

companies platform We adding to footprint, service given add believe focused to the an in these for our services Atlas our near-term. enhance offers on We’re acquisitions scale differentiated existing more geographic attractive expect announce or and and with national that additional companies, footprint. offerings and our

priority structure. make is Our capital progress improving our third to to with continue strategic

year the nearly capital a where management flow financial ratio post and us XXXX. in reduce with allowed results a debt in net turn of fourth to and on we led recapitalization to quarter. with leverage focus combined strong record-free full our a ended This strict Our working early lower a were the cash we our

priority us, our goal reduce and fourth cash ESG growth, a Going deleveraging leverage company the to through help This less And their customers generation times as to is forward, both combination M&A. X for commitment and is ESG. a is we our priority to net as than of the requirements. meet organic our

governance we have As we a company, believe strong practices.

and environmental all awareness inclusion, do. and safety and diversity high to that to committed we We’re

in to we to are ESG of more developing We formal year. goals, process later updates in the provide plan which the

with that and customers’ reiterate through the of sustainable our are committed to healthy and offers and Atlas resilient assessment I’ll quality services management and infrastructure environmental aligned work. and our systems we’re and goals providing ESG mitigation safe Additionally, many

value for are We’ll our on progress Atlas believe to key drive update these So initiatives to priorities our we forward. going shareholders. and factors to the continue

call our with and to I’ll financial our that, provide on the details back turn performance over to outlook. So David

David Quinn

discussing Thanks, in presenting performance to outlook. to be a very our Joe. be robust the record quarter and XXXX excited I’m

with Net market service XXXX, which business we quarter organic areas, revenue of growth the was contributions expense margin costs our let’s $XX.X including delivered prior quarter. of strong up contribute the expansion So to year larger was performance Adjusted XX.X% revenue Record driven passing operating QX. scale than million to project $XXX.X XX.X% the The we and XX.X% compared continue record was XX.X% revenue million timing increased the period up as net acquisitions. compared the the in from EBITDA million business, fourth begin in gross higher customers. was prior of through $XXX.X with mix projects gross last by from had part represented in up EBITDA end and solid mitigated although select in to year revenue the driven in more XX.X% to and of fundamentals, by all quarter, year X% was adjusted leverage prior by of year of as quarter. to subcontractors

to cost we as mentioned, transitory, Joe are over contracts the costs XX% labor higher of be As our impact expect of reimbursable.

versus income of loss Class over $X.X we related and For conversion $X.XX past a prior EPS A quarter, shares in produced the the $X.XX, of to year year. differential B quarter, with net million fourth Class the of of adjusted EPS in some to adjusted

the and flow cash sheet. to on Moving balance

management, $XX.X flow million, of strong was debt Debt During at flow quarter not key debt us it at full by XXXX year of capital decision pick and priority interest of X% and for in $XX.X the remains balance of with by cash revolver service end from the cash. beyond. we’ve this, included working million third the driven debt the the which of Net nearly strategic million, quarter, the flow us. down paying quarter quarter. the of million we the $XXX expense A fourth million. reduction record reduction in was a to And made is the end improved instead, generated our for resulting in consistent from expense XXXX and and from down this, cash $XX of with operations $XXX operations priority cash in with

was the X.X with end year at we approximately leverage net times our expectation quarter. line in set expected, last As

covenant which was bank from lower recapitalization turn in and a efficiencies forma cost were our following nearly we X.XX full than includes times, ratio, pro EBITDA acquisitions XXXX. Our both February

As we sheet longer-term. the our X and a strengthen laser-focused remain deleveraging organic times balance a to target level and continue M&A, growth combination over through sub Joe to on leverage continuing indicated, of net

for outlook our to Moving XXXX.

that from midpoint growth as to $XXX revenue as the XXXX market to results. million, to of and and tailwinds expect the increase strength We continued million. our anticipate expand of XX.X% our the expand the range XXXX million work, This compared strong the to a reflects acquisitions. contributions results. $XXX of adjusted timing to will of a at outlook an EBITDA on $XX of This backlog compared visibility we represents million see at to $XX to XX% of midpoint We range

even As we our margin guidance, top see expect in greater profitability can growth. from you and solid line growth

extremely We I’ll closing Joe our the moving that, remarks. forward. for excited the And call are turn back now by business to with outlook for

Joe Boyer

employees Atlas. We on to To for proud year the is We sustainable end active year. year revenue in year very sum committed a market solid up backlog, represent fourth record be Atlas’s David. throughout XXXX an fully robust a with to it quarter again, you, in the and solid safe another the very X,XXX manner. delivering build We Thank were and and delivered the was plan more pipeline. XXXX mission up, M&A to projects shaping critical and record than momentum ended EBITDA Atlas. full I’m fundamentals this for and US to for Great.

the So open again we for lines you Q&A, now thank us today. for can Operator, joining up please.

Operator

this question-and-answer comes Moore Please [Operator from proceed CJS Our your first Thank session. you. question Instructions] Chris time, with we’ll a conducting question. with be At Securities.

Chris Moore

quarter. Nice guys. afternoon, Good

Joe Boyer

Chris. you, Thank

David Quinn

Chris. Thanks,

Chris Moore

growth. $XXX gross drivers would the of bit The the little million, end? kind million just the midpoint maybe about $XXX range, And higher revenue you closer talk Sure. XX.X% to a is to get that

what know, represent that an on You basis? organic does

David Quinn

backlog mentioned, another question. Chris. as out again, And, range and $XXX first for to million. at you Thanks record high Put is for mid. of XX.X% revenue Good, achieving that like backed us of the million, foremost, so million $XXX year. of the $XXX of by, another revenue forward-looking XXX% implies next Yeah, this

It’s the our announced portfolio, In wins history. Access introduced to the large secured MTA addition in contract. we’ve Penn we that, largest contract contract New we’ve to some York the that

an we’re revenue that So a to project drive that it. as can help able accelerate is certainly example of

portfolio, project logistics added type things which really like a project in to In a Texas, warehouse new of is logistics Rhode another and our IHXX starting TxDOT to our Island, little even addition, work. bit we we’re trend secure and build great Amazon to in

too, really ultimately, end. growth acquisitions play So get at these you our course, XX% being to That, still are this the top going year organic. our types and XX.X% of push of XX% of that know, acquisitions look you into sticking of drivers things overall to being if to growth based the come closer to of our we’re on us and strategy be

to X% So range. organic somewhere growth the is targeted X%

Chris Moore

cadence expected and it should you free know, helpful. it, in know kind little improvement sequential just know Maybe you look on at both perspective that? a flow a you quarterly revenue a basis, of how ‘XX the about very cash can is or you a Got from we talk bit

David Quinn

think be always don’t improvement business. and I – we’ve talked it’ll sequential our the nature – seasonal Yeah, the of season about

tends most third quarter to be field-intensive Our season. our

that’s strongest our So season.

sort second our season know we winter got we get the second holidays, first fourth usually and be up you out you a our wind quarter. on we up into in quarter third is in the ramp holidays. as for little then the coming quarter the we of as the to of that to And bit Second ramp activity ready our tends quarter see of going and come

Chris Moore

free the you know Is that? a loaded at be perspective to or cash should looking really we back cash know a flow flow strong free with you from QX. likely look how ‘XX at And half

David Quinn

third us. evidence half know seeing grow you be the our always year. each it’ll the quarter peak Particularly in growth of of back for Yeah, you’re we loaded because as really

did a of have similar we’ll what capital a to heavy that working this we’ll maybe drawn So third and convert we in quarter bit fourth quarter, the year.

Chris Moore

I All the stop right, it. Got I appreciate but guys. Thanks, there, will time.

Joe Boyer

Thanks, Chris.

David Quinn

Thanks, Chris.

Operator

proceed from question with Please your comes next Our Noelle Stifel. with Dilts question.

Noelle Dilts

evening to Good and year. guys. Hi, the congrats end strong the on

Joe Boyer

Thanks, Noelle. Appreciate that.

Noelle Dilts

Yep, sure. Thanks.

we detail I – hoping just little thinking bit this Looks was first a correctly. to start could you make more on a you extend. about to talk just was an to it $XXX million, like Atlas? XX to sure little contract, Could should Penn I about provide that month the think looks the contribution can But So, plus JV. I’m contract option want the awarded you bit like specific about Station how

Joe Boyer

in one WSP think are look is, XX%, to I you with taken Noelle, $XX way just Sure. at we’ve million that that general backlog scope, that into JV we give on project. a on XX% a to

contract. be that’ll JV – that over of revenue expected that so period essentially Okay, Atlas the of the the piece

Noelle Dilts

Okay.

that? think how a sorry, sort should you or it And of estimate Do ask be that an and ramped kind about how in just to we X of year that lower over to period? contribution expect

Joe Boyer

to build the is as work over project in initial you obviously to stages design, team going know their it’s complete currently the period. eight-year It’s our an be design just Yes, increases. the begins that

X, in X, office increase So beyond. see commercial six you it’s X, pick to management as the know and get in XX in years the program more of months design the there. services in starts and you I’d field, first back completed to up And our a X effort say

Noelle Dilts

Perfect.

recently? you Thanks. the you’re expand little that of construction And seeing you there’s trends markets And know and in end the Okay. center the data I have commercial was on robust commercial particularly could on notable if pretty perspective, and hoping what a e-commerce of then sector you an across been market from seeing other you’re sort that know any just bit side. some

Joe Boyer

roughly Sure. are Noelle, XX% seeing, we XX% remember, we’re public, private.

of refinance We have sciences activity tech, and the the of side benefiting building basically in a acquisition, commercial bit activities construction and which and seen side, increased due business. pickup our quite are diligence development with the our our

our you David I as Board, just particularly are lettings. example markets, at is that. of public and in increase an But, seeing mentioned the say Amazon activities, new more state in really local know project demonstrate So an agencies would across construction our municipalities we

the progress steady level, there. steady a markets know and our You at In real the for the and and projects general, the horizon seeing with city really in bidding are we’re on activity market public county opportunities municipalities’ transportation in some transportation larger and environmental us.

Board and we due diligence with the As see I mentioned, sciences areas compliance construction building increased our activity. across in improvement environmental and really

a you be I that’s the momentum. know continuing to increase you think power we’re in is – seeing thing say to steady last one I’d that projects know

going You National projects Laboratories know, TerraPower and forward energy and we Idaho project Wyoming. see in at Hanford significant

our in petroleum markets retail that So strong. are

markets [ph] bit general, been in that compliance. retail [Marine & gives fairly the compliance and clients there. as continued picture little our So, Re] steady of Re] our [Marine their stores in hope inventorying have a you petroleum with & I

Noelle Dilts

It does. I’ll get back you. queue. in Thank Thanks.

Operator

Markets. with question Street comes Please with proceed from your next Rob Brown Capital Our Lake question.

Rob Brown

congratulations add and well. afternoon, Good my I’ll nice quarter and as

Joe Boyer

Thanks, Rob.

David Quinn

Rob. Thanks,

Rob Brown

a bit pipeline. focusing sort are areas of ‘XX? think the And – that mentioned you what couple how of It M&A for things a on? out do pipeline. playing the see Just you little Where you – on I in

Jonathan Parnell

exemplifies Jonathan with Strategy you here, Look, our the Officer. strategy. think I Chief Hey, acquisition Parnell Rob. see that TranSmart

in to strong technical adding with We’re provide to funding rich geographies us – and tailwinds. capabilities capable cross-selling us position target opportunities

focus. So that’s where to we’re going to continue

Rob our M&A DNA you key it’s the of story. of well a terms know Well, know, pillar pace as strategy. our the In growth and of you of part

M&A. pipeline our very continuing targets fuel anticipate to and active our we is through growth So, of XX%

Rob Brown

you can price over the out margin say should to steady do or playing the year? of of on see with a that get margin sort pretty ramp snap should increases. that kind a then And think back Jonathan. And quickly? I of it be some Thanks, sort increase you great. recovery, How Okay, you

David Quinn

Rob. question, Yeah, great

So, delivered up We during the were fiscal XXXX. points in XXX XXXX, I’m very basis XX.X%. that we ended business almost the step up XX%, to pleased from where with moved we

of climb for see to you’ll a with steady to of So it’ll really scale. be relative XXXX, sort exception it bounce QX, the start

our quarter. As earlier, that’s I mentioned biggest

again, to looking know $XXX levels million. we $XXX ahead, year expect next you million So revenue record

efficiencies to clients. about we’re contributing talked we’ve with with instituted As pricing are our margins. increases drive our operating our getting times, real continuing business that. the we’re several which traction to we’ve And And across

the again, our next up at looking is XX.X%, percentage middle about full year, which of at year-over-year year pretty so Now for excited X.X it. the points we’re guidance,

Rob Brown

Okay, I’ll turn thank you. it over.

Operator

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

Brent Thielman

good afternoon. Thanks, great. Hey,

Joe Boyer

Good Brent. afternoon,

David Quinn

Hi, Brent.

Brent Thielman

Maybe been is know roughly in like recapture favorable incurring of guidance today better these XXX some there this few know for in higher last component XXXX. strictly know you sound up in to you quarters? on you’ve know effectively just the any the business that? margins? the mix the achieving expenses implications Is And you of contracts to book you pick reflecting the and which margins bps Or those

David Quinn

think project our that, Brent things. backlog. the the the low is that too with already types side a which are the it more there’s around is question I contracts operating we I say, would larger on benefit leverage. mix So our of we’re work coming And well, builds benefit as that, into of growth executing, what seeing And more

we’re large to about adding think dedicated you If contracts. of bigger longer-term groups dynamic, the resources

we’re efficiencies. and project service standpoint. outperform to tending utilization to contract which that the also a PCQM really margin’s from E&D gain And continue are see gross we offerings, that, secured awards our we’ve recent through with large coming So

new terms basically margins gross EBITDA in contract So with seeing of overall, these we’re awards. larger and both benefit the

Brent Thielman

some all is impact as of agencies, I’m the super then, out bids? seeing – related thinking the curious else in right that’s any David. to there, are there cost or That TxDOT it, been resetting has business usual? Got public it timing some And just of in new of it of seeing particular, now I’m this out inflation we’re some environment about seen and that helpful, to you the –

Joe Boyer

XXXX a it is for I’m Consistent Brent, levels sorry this Joe is to I with pulled – really Leave we back the to think getting Brent, XXXX Brent, me seeing is business sorry. are XXXX growth. for – difficulty]. they [technical transportation us little slow, [technical back normalized was actually Rob, from what and difficulty]. that. actually the

so actually seeing quickly, we’re awarded being out. projects and So fairly let moving

clients come So clients think you the are consistently. seeing force. back our out are in full know to pretty we’re And awards I work and lettings

Brent Thielman

being Joe. going just are glimpse mean, infrastructure related by great, any behind scenes much it and level. early That’s Are to to any I up but develop They’re evidence supported in about on see starting funding? that’s there’s later to earlier. a you’ve federal boots the into year, talked maybe the showing subsidiaries I set there this the are more that starting – your out ground coming agency contracts what know at on the that perhaps the that come surface And planning are some of funding. little

Joe Boyer

good Yeah, a question. that’s

can say, current complete use speaks to clients capacities. we done. do for really have work everything current we our see contract They’re their of trying Right. of to getting just the squeeze to I looking which speed capacity, think is what

think put there You are out to new contracts. I know plans

But be significance the for yet. that. us yet infrastructure enough to discussions around on bill honest probably not real there’s So revenues clarity that

into thinking our XXXX. projects still push currently But current seeing. do utilizing we’re So contracts we’re are more clients to late definitely what ’XX from

Brent Thielman

mean, two feel you of – respect know quarter a better environment prior and about you well, maybe an issues? talked I I where this Got as do of you’re one. just or more that obviously hiring Joe, update the to just – but feel backlog, now, it. of you to kind you’ve sitting where footing like business the just ago challenging with on on Maybe record last is? you work retention quarters, lot the You’re like a those you do, were kind in just guess

Joe Boyer

know, Atlas, said, at I here you But now. steady demand. successful them been have and years very, appears Yes, base footing there, tell very know had staying that recruiting resource for you keeping on we we’ve you it and stable and is of at will they’ve more us ahead a up to I it think our as a I

is improved, and of the work form of optimistic, of utilization headcount You is going we’re so footing some know our on know everybody forward. a facing better number challenges, more labor people you but improved much much

Brent Thielman

Okay, great to Best luck. hear. of you. Thank

Operator

Thompson Our next proceed Research question from with comes Thompson Kathryn question. with Please your Group.

Brian Biros

afternoon. This in for is of Hey, for ’XX? in the guidance Thank actually Kathryn. kind Brian that from I are was that or order break weakest? Biros growth X% thinking good on How you the across rank X% on segments know you midpoint first segments think guess to strongest different the guidance? business to You either How for organic? out does again, mentioned you a guidance taking questions. XX.X%, one my about the the, of I percentage

David Quinn

Brian, on segments. so based our don’t Hi, – run we business we So

we the the service to our if earlier to you thing to might the know side as call, PCQM uptick real trends closest house. segment – look been the were And be, the know at of the with you E&D we’ve it seen seeing a on speak a offerings. business, think I you to we’ve relative and I with mentioned if

you strong over growth, up? that’s this know So emerging to to I but see pick to I’ll where it you continue think turn we’re going

Joe Boyer

No, I think it you covered well.

there our to – business, XX% program in growth of performance our anticipated in businesses case our large our environmental business a of that that I management you so business, PCQM] be the some roughly seeing our third you so strong of improving XXXX, think our PCM as of XX% business [sic our we’re side still XX%, to well. know, know

just our service distribution of general end even as markets So, but broadly, as across all across upticks and just broad well. four lines as well market our

Brian Biros

was Got More those. trying it, just if among helpful. there understand yet a standout to that’s

the the a Station second you the question again, it seems contract, Penn long project, large big So contract know project, large on deal. from like

and has. just project? what Penn drivers a know, Station given about scale that the mega winning Can that the visibility guys project, for you You Atlas attributes it’s talk were

Joe Boyer

in without Sure, know made trying say to I strength their and think sad Atlas led I of know professionals the on I the that and to resume, quality in area York the us to in winning think. capabilities procurement, clearly what’s the MTA’s in with and having and WSP number that project, just the it’s having public relationships of New you out rail, experience this their and combination take that the MTA think MTA with you experienced

Brian Biros

Thank you.

Operator

comes Our Crist question. Please Don Johnson your next Rice. with question from proceed with

Don Crist

are evening, Good How guys. y’all?

Joe Boyer

Good.

Yourself?

David Quinn

Doing great, Don.

Don Crist

Hanging in since already. the asked to of quick lot knowhow. been a One question there best

of today? TranSmart Technologies there? any that the On the of in think that’s opportunities type acquisition, guidance have what do cross-selling you And you gave baked think you

Jonathan Parnell

Hey, Don, Jonathan Parnell here.

acquisition work our rich this because transportable really bringing the have, cross-selling is opportunities, We highly across platform.

currently Midwest. and So Texas, Georgia, California, to we the in expect Florida, geographies services to they’re operating these where be only able – offer transport services, like these

of acquisitions. synergies expect revenue as these little it typically integrate I bit we a that So, of would this we do time to to drive say mature off acquisition, takes

revenue I synergies So in wouldn’t expect of ton year a one.

Don Crist

Okay.

Thanks. appreciate everything I been else time. I asked, has but think the

Joe Boyer

Thank you.

David Quinn

Thanks, Don.

Operator

from follow-up your proceed with Moore Chris question. with Please question next a Securities. is CJS Our

Chris Moore

Yeah.

one Just on TranSmart. follow-up more

get Aren’t to your of they on market kind the Anything sense now. say a could get here. ballpark? for about you of sense And you opportunities. know just in revenue? employees trying million the trying that XX% current that where all you way you the Is you with a the of scope you growth Just revenue that talked know reasonable to aggressive? are a know kind is I’m was $XX – know

David Quinn

Yeah.

providing – at on deals. an So, smaller bolt-on individual guidance continue to Chris individual for for thanks We’ll transaction our question. reserve the level

growth can headcount know you said acquisitively, not being disparate and revenue, analytics that XX% know balance You of to it’s from that organically you be too mentioned to XX% and some do I’d you our know beyond will that our be the that driven translate business. going on

Chris Moore

Got something five XX%. And They’ve the they’re it. you been is market just in know of that growing that the like years in matching last in terms about that.

Jonathan Parnell

to rate at high rapid think achieve. not growing of bar provides be like acquisitions these we now I drive at we, a growth, to expect services business we us grow Jonathan But to this them pace drive Parnell. and fast Chris, were done faster as we said to But only well. they some growing. cross-sell that’s XX% They’d want to growth, some it opportunities you a know Hey, for than a rich course,

Chris Moore

it. appreciate I there. Got leave it. I it

Jonathan Parnell

Thank you.

David Quinn

Chris. Thanks,

Joe Boyer

Chris. Thanks,

Operator

with gentlemen question. and apologize. Dilts one Please have with Ladies from your Stifel. do I – proceed follow-up more We Noelle

Noelle Dilts

Thanks.

two So, additional questions.

you’re versus next So next first, in comment curious any targets how I you’re Jonathan elevated or year. terms outsourced Just Thanks. for what of seeing pricing? wondering you’re think if on the And work – multiples? in bit self-perform about creep about in versus market second, for seeing thinking if competition continued could how we a – was should

David Quinn

this been drive you been Right, over call the been obviously, Noelle, Yeah, And from to a thanks. question. and know now know XX%. we’ve you two it, appreciate self-performance where know we’ve affording a XX% able high this priority half we are up maybe result, the hard And XX% us, last to has a our years. for to as you

try that going squeeze XXXX, what not we’ve our I And we along. we’re that at. up to point, and are to at best And full we’re a going to what And to profile XX%. consistent there press start popping going to I if get know to going you’re certain out do. outside are to maybe to this risk that’s because year another I’m We’re out, point looking XX.X%, stick just you continue with think discussed things we’re think

Noelle Dilts

That makes sense. Thanks.

Jonathan Parnell

Noelle. Hey,

infrastructure people times lot competition, plenty space. In trying a bill in saw was uptick finding of in you the X.X competition, we terms of the and past. that opportunities times EBITDA of discussed the price into the still to we’re range the really know get But you an when know passed to X.X in we’ve

really with firms. presence deals into connections national provides with us a Our M&A market-leading some great proprietary

company. the accretive going So the allow that’s – we’re pipeline that be and deals filling keeping our hope pipeline, to And to both to disciplined, doing I deal are very that ensure that’s us to active. structure helpful our highly deleveraging continue for pricing it’s in and to

Noelle Dilts

Great. Thank thanks. Great, you.

Operator

turn And the remarks. Ladies question-and-answer and the gentlemen, closing we end Joe back Mr. to I Boyer would to for call session. have of the like reached

Joe Boyer

we you thank you on Thanks to your look to progress. very everybody forward very and appreciate Atlas us much. want joining our today support much. of Thank and updating for I

Operator

conference. concludes for participation. you This day. great Thank all a Have your today’s

Atlas Technical Consultants (ATCX) 16 Mar 222021 Q4 Earnings call transcript