- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to QualTek's Third Quarter 2022 Earnings call. All participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the call over to Michael Bowen. you. Thank Mr. ahead go Please Bowen.

Michael Bowen

you, operator, third Welcome QualTek's morning and XXXX earnings good quarter everyone. call. to Thank

Chief Before XX-K. laws, circumstances. herein we call. begin, we I to or make or session, With would have like us a to disclaims are statements making those expectations QualTek's will remarks during subject statements these revisions contained prepared filings the required the reflect of uncertainties forward-looking obligation will and to Executive to Exchange Securities and risks remind forward-looking The statements during Adam federal and risks Financial the in from today, review company's call changes These by the financial Hisey, X-K detailed we from forward-looking in QualTek in to otherwise today's Chief President Scott, Officer; and Spittler, elsewhere Whether Officer. QualTek's with risk specifically with inherent any in or Q&A and Except to factors securities Scott followed uncertainties. are conditions sections update by format Forms remarks be and regards of everyone such events, as be opening that and our Adam. Commission,

these have Scott. turn I'll things will Scott? updates. over Q&A We period go a following to that, With ahead and

Scott Hisey

and of year the our XXth results Michael celebrated of Thanks, the we with, call, perspectives XXXX, the and last good To morning third begin quarter for balance QualTek outlook today's discuss our for everyone. anniversary. will month, On our XXXX. for early

growth offerings, logistics telecommunications new footprint and extend of XX-year and allowed our add that period, geographic base support. and strategic of exciting us company business have the achieved course service energy recovery the organic to has renewable including Over acquisitions, and which our

blue-chip essential telecommunications telecommunications as major facets XXX We energy in we and viewed player with the industry. Fortune and an are providers strong many relationships have built of

inflation continue inception, has enter hard and as our I and we transition weathered continue and and years, and our our second our their company, Within all while the for partnership. want grow into we will to as we QualTek two agile COVID-XX public adaptable public been have Since the year that a unprecedented company. pandemic employees to past quarter-over-quarter. work thank customers a trend, and our backlog

Now, our transition into results. third quarter

topping During the XX% once revenue than the up record quarter, QX we Total recorded is an versus million, with $XXX same prior revenue the season. above $XXX.X company quarter XXXX third prior of third was revenue significant QX solidly active our line top A our hurricane over XX% given increase sequentially heavily an Revenue revenue which quarter million. by again from XXXX to by quarter. year year. was more Telecommunications of impacted achievement results growth primarily segment, posted versus attributable and

over $X.X recovery year-over-year into season industry, head previous with the logistics season, backlog Our timing of billion. the by much the in in of a revenue with was of impacted coupled XX-month years. hurricane with major renewables events general slowness the than QX We and the later occurring renewables XXXX

XX% so backlog While was we address margins measures of the year, to to and attributable adjusted is our company the significant increase which to many overall we have we have year. increase an several $XXX from for decrease experience our XXXX inflationary continue shortly. Yesterday, We prior million, Total expect hurricane demand, this same from revenue the have million season and full companies, million, the year pressures. to do XXXX, for quarter ramp-related line issued which and improve continued forward, opportunities EBITDA Furthermore, as year-over-year. profitability combat we touch believe quickly And a impacted inflation $XX.X impacted and guidance there range which in profitability. we going to and fuel I'll grow timing quarter our and incurred growth which costs a wage upon are we've to top profitability. the taken to updated $XXX like

will remain million. inflationary hurricane When of $XX of with XXXX $XX and from extent segments, year-over-year. spoke considering in company flat million performance, be the The business year-to-date guidance beginning results public our Our adjusted look continued will about. high-demand Taking our just the evidenced revenue. our at EBITDA our as by updated to considered season our and to pressures roughly each Telecom an I extremely Telecom, range costs record incremental the a XXXX, timing

quarter As increased on growth has our building of are in record at revenues. also backlog the due has we now fiber Northeast same the and Midwest entering Expansion Western significant at expansion. time been pace. XG in and the and consistent to continues our our grow industry to records high company all-time call, a markets availability as was the licenses utilization C-band second and our we discussed period of The

we we margins. customers' on more worked the which for options. demand that our our end, focus XXXX. Telecom in of rate in with in will payment our which we of delivery price, several customers with our been we backlog, executing our the will $X.X us successfully margins profitability continue terms have have and of favorable includes As to and mix the This and our believe improve respond new negotiating services, Telecom, hampered pricing environment. billion current have believe to scale customers benefit and that at strong right on We increases scope our many To

resulted third recovery the quarter for quiet timing of EBITDA third our year-over-year as heavily of previous the a business, sizable hurricane Recovery delayed This of significant our the of demand Moving was been from in in August. time last landfall QX storm our and year to business has drove the our U.S. year. in and generated late in adjusted hurricane recovery item season September Renewables More XXXX, years variability quarter logistics. our In Logistics significant Logistics services. of season in and deployed XXXX, revenue most specifically, following profitable making has Recovery logistics in the relatively segment,

of landfall year. majority of U.S. when the versus made the generating Ian last occurring QX the week Hurricane XXXX, activities in the looking in variability period same causing with of prior at QX therefore our revenue XXXX quarter, and QX During

Recovery we Our non-storm-related business and our into remains well provide positioned other people Logistics to we assets, positive to expect as relationships expand activities. and in prospects, investments future look

explore with be round. opportunities offerings will continue agile this more We and asset to base our valuable we deploy regularly to service year

delays participating have the challenges pushed plans we mentioned look to increased by see these As in continued regulatory previously, and renewable that causing quarter, recently prospects build bid be chain impacted and XXXX. energy new We've trends industry forward XXXX. has In in into to XXXX supply been XXXX. and to third the begun activity impacted

Adam we ABL, in were by senior and speak greater Finally, supported our detail. which will to amendments about lender our executing

to balance unprecedented analyzing growth strategy ways elevated with structure are rate capital We environment. our and our current today's demand interest in

cash We we XX has laser-focused as In balancing billion our liquidity as $X.X convert deliver our history. profitably perform its to and continue remain we customer’s management to for and have QualTek continued add on backlog. year to closing,

objectives. key to committed on us Our as their partner customers with execute they remain

future forward As relationships focused we backlog, delivery we continuing our look towards into are quarter on XXXX to and XXXX, customer to profitable of head of work the look and and last services, With over and the I turn now Adam Adam? leadership positioning and to goals. company on financial Chief senior execute partners that, our Spittler, will Financial to with our Officer. our it

Adam Spittler

XXXX Thank third results. our you and good quarter I everyone. financial Today, Scott, morning, will cover

non-GAAP our discussion this call, As in the EBITDA. indicated can measures adjusted our non-GAAP include of release. details of of beginning and press at results found will be financial Reconciliation

now $XXX.X from million. quarter quarter $XXX.X million, to revenue, up results. for Revenue Turning was quarter third X.X% XXXX a increase third the

to as growth services be third after to important third the quarter. were from third million the Net QX impressive income is our from without benefit the of loss revenue our recovery quarter for to Our continues continuing of quarter $XX.X $X.X versus in majority operations the achieved date was occurred our of net XXXX. million XXXX have that significant note XXXX it results and business

Third abnormally $XX.X however, million ongoing season activity $XX.X and loss in million wages fuel quarter to and achieved EBITDA for third particularly Comparative inflation by a skewed prior impacted improvement significant results of also was million are we compared quarter. $XX.X late cost. Sequentially, quarter of XXXX. related hurricane due year's the this net XXXX adjusted to the to from

inflationary price, have costs telecom now While we expect the our through out, segment others we to begin near-term. continue improve our on into scale margins will XXXX and and and changes continue level some to I provide detail results. ramp in will experienced costs to scope significant

the third Telecom revenue, to increased $XXX.X compared XX.X% XXXX, XXXX. to quarter $XXX.X of quarter for Third million million

of our each line We XX.X%, of year-over-year and our XX.X% to have top service are increases grown business revenue wireline with in reporting respectively. pleased offerings revenue Telecom and wireless

Third an basis, adjusted XG quarter of the up we quarter decline a and attribute Comparatively EBITDA XX.X% on EBITDA inflation $XX.X associated million year-over-year XXXX, continued with our XXXX. this third costs coupled to Telecom the reported was in wage increase margin of fuel the slightly our and million, in $XX.X space. adjusted down ramp was from with

robust our service to well-positioned growth see across significant Telecom demand to believe service experience offerings offerings that our segment. wireline wireless and within for extremely we continue all are We continued and

services and of adjusted to deployed decrease $X.X with and $XX.X decrease primarily due of in revenue quarter earlier, recovery was a million EBITDA The very of to events our timing Ian to our September late margins adjusted services $XX.X Despite and variability therefore entire recovery of of Conversely, of the Renewable revenue Third our significant strong point the year of Logistics reiterate million shift those timing of were quarter. Scott's in recovery US XXXX the recorded prior majority over same the thus Hurricane EBITDA month Recovery with last Recovery the our remain of within the XXXX both are revenue made the business. recovery on $XX.X last providing in prior the and in an week segment quarter year. adjusted To of response shifting million. period the EBITDA and million, for beginning business Hurricane third August par fourth in year. and Ida activities landfall in during being

million. XXXX Third were costs corporate $X quarter

this were will for sequential a costs from revenue to of near-term. We level corporate the for second our quarter. believe costs in approximate the corporate quarter the X.X% improvement Our X.X%

and This XX%; at Verizon Florida XX% X% XX%, compares each were to & X% AT&T X%. include discuss MCG was for AT&T of recovery a will for this was provider I our XX%, customers a as Verizon services. summary and the services our and XX% prior five is T-Mobile Blattner of Light and XXXX of year the approximately third at Comcast Now at quarter Power period of XX%; wireline percentage and T-Mobile wireless, revenue. revenue. largest at at

of XX.X%, revenue in Our XX.X% three and QX largest QX testament XXXX the of reliable and Verizon This reflects at XX%; important our customer our XXXX. T-Mobile We're proud customers to with a top increased services ability versus execute Comcast We we these prior year crucial our view accounted trusted from period. customers. in infrastructure to for AT&T XX.X% on revenue this our growth extremely as help diversification. our improvement in X.X% as customers provide a XX%; built. XXX%

QX it increase end to our billion end quarterly is QX reported at backlog a the that was an rolling a XXXX. backlog $X.X As backlog the versus we relates was XXXX, Total of $X.X of basis. our report billion on at two-year the which

our to increased Telecom primarily increase visibility and Our is segment. within awards related in backlog

call are Finally, $XXX with liquidity during our working million This in mentioned our our December to demonstrates to Logistics our line It's stakeholders. facility addressing continuing our each with Scott? long-standing we across back and close business. relationship XX the amended amendment capital PNC earlier credit Recovery is lender. the our profitability will remarks. service strong turn with to that now Scott and of other I the clear partnering look senior with between we committed increase traditionally opportunities prepared to want his XX. additional September demand remarks. to remain to year through Scott which have echoing, I helps our the all with company conclude that we offerings maximize to customers and to quarter the for associated needs This in our

Scott Hisey

Thanks, Adam.

current continued perform for and has QualTek customers challenging our given environment, a While backlog. strong level at the XXXX in our revenue profitability, reflected year been as has a to high growth increased for economic

and to I XXXX. billion profitability to willingness customers' in normalized We pricing, remarks, on our our by encouraged on and are call industry return We our with laser-focused Q&A. Operator? will operator the executing concludes This scope. backlog we the remain margin back work record work for now as to scale the to $X.X turn

Operator

comes question Please Our you. Instructions] [Operator Thank go from ahead. from Horan Oppenheimer. Tim first

line is open. Your

Tim Horan

can could timing the of on expect expecting of renewable us you sense range will couple type margins you're A Thanks. forward? what kind sense kind XXXX. give guys. any you Hi, the know growth year? – business, margins yes any could next the color little of get represent the for – Yes, increases and sorry. you what questions. we of I and of give And color the business quarter third, that timing what then recovery of And of into in and and talk be? revenue price could fourth that more One, Secondly, flow a maybe on said sense a sense EBITDA you'd revenue a about going for overall can you bit

Scott Hisey

Tim. Thanks,

the renewables that opportunities of take were There seeing who We for and and lot a of supply a that builds, lot but for bid piece, first. lot supports in were so in excited – to to a business all which continue we're hampered activity at a something strong regulatory see player business XXXX we're we we year we're So XXXX. as opportunity of build slowing looked pushed that of XXXX other XXXX a seeing QualTek, issues in that on more and at projects activity renewables. and for XXXX the that and looked as issues, I'll us as of business having the to that sort chain

So about the inconsistent. a priority business. as right just not that we're now work has for XXXX been excited It's pretty us

and for with our XXXX, and on other and We're margin and On at maximize growth. the Renewable right within looking our opportunities focusing backlog continues to guidance and segment I at we're look think Power balancing now grow. the is customers which wireline looking to the to wireless

we regarding some piece and this guidance in season give increases. we So still feel price later what I'll could say last then XXXX, heavily the in and better And color and from XXXX like we're budget bid season probably quarter. on was

wage something people this QX We've that and ramp on a the what throughout has use fuel the you to at public we're QX. and the trucks started in unprecedented and the do year in on We've been and in pretty think unemployment. terms. being is the dominant customers and lot QX our really XG working we we after industry working scale, on managing So in of our that an started on been X% significant fuel And that look we about inflation really, we inflation with as growth whole late customers pricing it's went payment of the throughout with with through. pricing, and demand course year put

we contracts about But are you there of have existence. of pricing lot early a of feel a for and prices. that. opportunities were the we've the growth are there's year our initiatives the a XXXX, effects from that and the entire part, So, and increase been lot margin years to when for a pricing that on Last where mean in most for operated the some margins, whole of couple lot almost with think double-digits I standpoint. pressure we'll inflation, resetting

to perform expect continue levels to the our margins previous in move coming years. normalized We at back to and

Tim Horan

you're of price level? some think say you that XXXX get be your to significant do going can to margin just Is at that increases fair historical to the clear, back you beginning So to in. get kicking

Scott Hisey

Yes.

they partnerships, our from to And at to efforts price as negotiated going we with we're by and we're of scope not perspective There of we're confident And be what focus build. supported pricing. lot needs I like calls efforts I our who customers on the lot peers of to our fuel meet customers. encouraged customers and in they think inflation, and as increases, inflation as customers, a of are their said in I they some on address set what on a and have wage focus in industries are, have some margins our to the had our of to willing to feel with initiatives, up So were labor stepping we've long-term that and look the stepped margin a because work. done perhaps pressures where rate have our work growth I feel up have reality and I'm all well. challenges. changes And cases, we're to margins going returning requirements together normal And to these levels. our

Tim Horan

just sense just that get normal, timing, year, sense? we back quarter a is third it quarter again a next is And -- first to of rough

Scott Hisey

in like of return levels. to us going to QualTek's with lot normal feel I have story, familiar next are we who with a Yes. of we're markets. year, Obviously, winter those of our QX margin business,

because speaking, jobs from backlog, delivery we very are. bidding and set customers' weather. very bar our don't margin focused high converting that So from profitability and But typically standpoint, that of we're are we're the a QX, what we for work on expectations a and margin the of profile, seasonality

Tim Horan

could on Nicole. on rough the this how sense is for hurricanes, of and how we big represent business Ian fourth then recovery of quarter? the And And maybe will idea? long what large can get -- a it recovery kind last, think for And you a how maybe of the revenue deal that

Scott Hisey

Yes.

working So we're the still partially down deployed hurricane. and we're

further really it to and a about in dial quarter, that to So we we're number opportunities the talk better. little quite at little to yet. look into When not that going other a we'll get able be

Adam Spittler

And deployed. Tim, are still mentioned, as we Scott

we're a day-by-day on taking it basis. just So,

Tim Horan

what I year. of Do it's about hurricane overall sense we to later well, but this same the think, idea, like, any the -- the half you it was infrastructure? impact was a last like know, And how much versus can get season

Scott Hisey

Yes.

So into still But on day-by-day of Tim, variability, guidance. some a you basis. as kind we're there taking point, just I deployed. can And the mentioned, it back this we're at is

Tim Horan

Got basically it. they When said have level? rural CapEx your relatively there. and But Got the sorry outlook? questions. at look Could talk they lot the high XX is it. places AT&T, have build at sustainable for months up how you you kind the And go. then maybe you a are of will last do about peaking of outs from XX, and revenues to of question longer-term I decline a just wireless -- sense know, other over this next Verizon, still

Adam Spittler

Yes.

one the Tim is, out and that much So, flat, of are decreasing their that within work customers committed on some the I'll some But say CapEx the forecast, some work the thing that our are or doing, pretty is ways. wireless in fiber, coming CapEx. are that side of doing with them type of we're them we're place in either

do So, not to is we're or that work particular down. backlog improve out decreasing. at for cell that is towers not going budgets we and their the deploy fiber and The on looking networks or specific change demand necessity equipment

that greater we and within businesses at we pretty of and the I their will speak these for portion levels confident the of continue that customers feel to. do So that the CapEx those have CapEx other they can't portions

Tim Horan

Thanks, Understood. guys.

Operator

go Schwab question Capital. comes from Craig-Hallum Our next ahead. from Please Christian

Your line is open.

Christian Schwab

Hey great.

on correct? from questions. December September goes few $XX million. million the on to a Is -- ABL just back that just XX, right, that XX to it's then it to -- million extended clear from $XXX Adam, to that be the Just $XX

Adam Spittler

million. then down $XXX.X was year-end pre-amendment XX amendment to and back to facility million from $XXX September million. does This go $XXX.X it extends the it So, through

Christian Schwab

quarter? the much the you [indiscernible]? ABL the how on on currently How the And that Great. much have is at of end do

Adam Spittler

Yes.

that anticipate a So the that. will Obviously, is business $XXX there's in drawn million portion -- to we we sizable collecting recovery about on QX. related there

Christian Schwab

Okay.

telco business typical then in Okay. are we Great. or down business, to you assuming what that thinking? be be in QX X% Is seasonality And that guys the should for XX%?

Adam Spittler

Yes.

reasonable. I think that's

cold we weather markets. As Scott in mentioned work some Christian, do

but relatively turn far, could an has have been mild that it quickly So impact. and

Christian Schwab

Okay.

kind MasTec. Dycom telecommunications, lead for the you to on or versus to have plus really $XXX your it billion unprecedented XX wait because CapEx trailing confused revenue like I year backlog I'm you of have minus in in cycles. guys backlog, peers great but don't because it's and XXXX you understand. should this $X.X versus But visibility which million Okay. have yet on no and visibility call

Scott Hisey

put point growth look the you wireless XXXX, in So that. our portion a wireline experience ramp some mean if just the on obviously through finer Christian, we significant of to the kind at revenue did of both and business. I in

works a kind majority XXXX, over the If CapEx at two and in it related quarters you of revenue. has growth wireline our And look the in similar of been step-up backlog last to do we way for out programs. anticipate our the the

The you of particularly work issued And other lot XXXX. the a Christian, thing around change and wireless particularly was as although work beginning licenses when at mid-summer. anomaly an supply of were was that have XXXX, and a of the commitments you in building did in really start lot C-band. us, recall and allowed We us to to issued

So of to of where an revenue sort rate. our you backlog run our have anomaly sort outsized is

to have backlog choice, that no And revenue in backlog. find a We to a our run XX-month split That's way rate. half. increase but

are the and were work going. in And getting in months as this particularly were of issued day the crews that the growth delays. flowed. how from profitability doing. to was our There I and normalization, cycle standpoint to up bring Northeast and to really let's to know everybody tell work. have I other or can that the I is next has companies wants speak And we take get and five to slower of But down where our our backlog to going. manage grow we can't So typically a we've four been speed to you continue our work crews think which industry,

challenges are think pretty we've numbers in I hefty of we're been of indicative a meeting to QX the Telecom ramp. growing. And So responding the sort that

Christian Schwab

the that backlog fashion Do you XX in to guys through work material next capital in a have months. even the

should year be substantial in we accomplished backlog anywhere you a frame can't and that occurs last versus to increase mean get a above assume a revenue well grew time the two-year backlog decrease in substantial covering either near that? more work I in what So

Scott Hisey

I'll that is to two and have Christian. a -- backlog. business, in continue we in it's have considering robust we're liquidity take the good options Obviously, to maximize execute So all to growth on to parts, which different problem that

the flip to to every We On that single side, add we on day people people. us resources need backlog. adding adding help focus execute

Christian Schwab

how your miles. et confused regarding that with scale Okay. and quarter. meaningful also then I you discussions mentioned the second left cetera you existing business Last you could I margins don't understand met that can't right you kind the wage guess build stated cetera, double-digit all get I'm organically continue how the few locations how missed we And on the a et about and half in guys customers had of with this around somehow in conversation suggested you you and fuel that days inflation quarter. by surprised the to it to to you quarter year. get of

Scott Hisey

to were question, customers fast what I we were associated during priorities how fuel and appreciate wouldn't demand I with shifted ramp to quarter. continued build think, question. necessarily the to the were growing as and we I ramp business say, telecom. and Christian, needed inflationary we There our pressures surprised, had the certainly So your of the and and we

the how the storm was then QX. great core a were in think perspective, think the business our we've think that of and from demand slowness in company, ramping blended from weight where Telecom we I season, QX perspective I margins the of business of Telecom, that up. think our this inception for I ended But had of from particular which a I

significantly. ramped have We

Adam what I with customer customers to they spoke increases year-over-year and of major our of think revenue all percentage are.

We've through to for our rough has since this and to rates, continued fast, that I inflation fuel QX demand year. pretty particularly we're is, with largest as our period improvements. our thing fuel our to here margins of structure laser-focused lot inflation, a been We about as margin I and spoke in and of the a course -- customers, caused business. ramp started prioritizing continued there's on margins on historically, we've from always margins, normalized us company services tell cost customers we build and in margins build has pressure wage the on it, with through focus the So you this but and will our one returning with the gone wage

Christian Schwab

Great. Okay. Thank questions. No other you.

Operator

[Operator Brent Instructions] from Davidson. Please go Our D.A. ahead. comes next question from Thielman

is line Your open.

Jean Ramirez

Good are for morning. This is Brent. Jean How you? Ramirez

Scott Hisey

Great. How are you?

Jean Ramirez

Good.

Telecom, me more you of the wireline? color know part provide see to some which Regarding on let you are could or seeing business between pressures margins wireless and

Scott Hisey

years our tell right growth. we're pricing fueled the and the and out long and two have an shortage a right and Thank type I'm have pretty that of and can on customers a building wireline said, some have the been go because we wireless I demand industry question, that being started pretty And a I tiresome for you. That a everyone, time in asked and see to started. around the swings have months, XG. historically unprecedented there is we been to labor seen. work profile make labor that business, scale for market way sure XG We Telecom that actually XX wireline continuing wireless talked of is assure there's and long the to you substantial healthy just the years glad you opportunities last fiber wireless. scope and And there's XX for all now. really and really you little who and sure of it there's goals I'm the a carriers it between accomplish I now the about for us on before in the with word analysts will sufficient for because those all in know of lot XG side are But working

to moving wireline balance our our growth I wireless within XX% see Adam are think, was We you'll that year-over-year. about, growth out spoke and think, wireline QualTek, I

Historically, QualTek projects. other out wireline in the has the that it see player, looking foreseeable wireline the But we're wireline sometimes move throughout different and wireline to don't We where way been also there's swings, more So slower. a future. significant balance shifts. gets for to

move really historically, wireline strong and where than are wireless to continue folks our in as is wireline. going we're So, and out. strong we've been substantially look balance larger into But opportunities that to and build customers to margin

Jean Ramirez

seeing just missing -- on am here? that Is And more on wireline. you're margins seeing, what so you're I or to clarify, pressure is something

Scott Hisey

pressure to And little primarily recessionary a inflationary the due more, current contracts, be crews conditions. a just I'll the more that's of clear on on then. predated than having some and shortage wireline. and is There's Yeah, of wireless, there

we move a of efficiencies, seeing margins that, profile new we're forward, -- we also just pricing opportunities activity new is wireless from projects obviously are margins the for we're construction demand bids from As the unprecedented see and but fiber of bid the stronger. through addressing and and sort margin

as and So demand become think the towards we'll to substantially, good a is are out way has shifted balance approach. at. Telecom And the I QualTek balanced wireless, business. best looking wireline. increased we're our has And we wireless with balance out heavily pretty our to pretty approach business but

Jean Ramirez

more Got question a to-date? that. Okay. one Thank all done based record And just have the would for will activity it. year on you just recovery

Scott Hisey

still we're earlier, on There mentioned I variability. a As is taking a basis. of We're lot deployed. day-to-day

initiatives in and an opportunities management with that a of clear we strong too job that the grow to future. of to And early and power in Recovery business And and just for it's segment Logistics, just significant our and see initiatives that is business. all our also support our foundation, important leadership done the renewable tremendous to team, tell. extremely So part had be the

very that seasonality plans piece group. and part that's go confident the in our of of a feel company. segment we we to So forward, as And run as it that consistent reduce more big the of growing business a

Jean Ramirez

to… flow. Got mind, question just could it. don't regarding wanted one I And more if you ask I cash

Scott Hisey

Please go ahead.

Jean Ramirez

you. Thank Yeah.

-- how provide in that how cash So XXXX? still -- and is flow in on. same that there And it to and the much bleed I said idea maybe in is you're it you or -- how of you or you does answer guides much still want QX? guidance see the providing cash coming is next coming or perhaps just work Or But -- flow know kind are deploy into into you you're the how much you in? see seeing could going or some some the variability and

Scott Hisey

Yeah.

So, QX, on business of obviously, In QX just with terms, positive cash at our anticipate sequentially. if mentioned half grew been look our flow year. in wireless demand. on XX.X% customers the having we've we obviously, do we in payment back cash QX, But working accelerating flow, you some the based

million recovery QX. So there the $X about in capital related that million business, collecting in some And $XX that we of then build build in was business And just was events. then the had positive. business. flow of our anticipate working cash a We about rest to

So as you pretty think being we about do QX, anticipate cash strongly positive. flow

Jean Ramirez

you. Appreciate it. Thank Great.

Operator

comes question next Oppenheimer. Tim go Our Please from Horan from ahead.

line is Your open.

Tim Horan

Thanks guys.

that maybe Does that rate can of increases to billion the revenues is billion us just on of And sorry, on being missing equal Just this so bit to backlog. talking backlog. be mean, things the mean, range roughly more a $X the XXXX primarily And you. I in expecting? next The something? XXXX, and telecom. all Thank meet you're backlog, lastly, I what price little run also telecom's price type reflect got we're increases? a you give future $X.X color

Adam Spittler

multiyear you math. I But our We think large the extent our we margins business believe at are right. Tim, about that of. attractive Yeah, some And programs Telecom business the if in mean that did you haven't is I that's QX $XXX here full look seen yeah, million. was that our wireline start at

Scott Hisey

almost other as telecom to and is renewables is There think backlog of our small. grow. a portion a your answer in entirely I power they're we there, question but of And portion line

mode. reflects There's expectation's we so into have XXXX So still that our still out, and contracts we terms We're out beyond two four But in growth years point, that three sites of ramping. it customers in we cases, XXXX. our are goes have schedule. some that. still your of years, a for to telecom build And there's go in backlog are

that timing expectation that from customers So our is we'll backlog. from a the standpoint, execute

Tim Horan

you point? us increases expect include, a And And on the range can that get? price at you increases to this is the give price backlog

Adam Spittler

as not with We're in increases. price going are include customers. the does time, still what It discussions disclose various to we at this ranges are

Tim Horan

Thank Understood. you.

Operator

ahead. from from Our Please Christian next question go Capital. comes Schwab Craig-Hallum

Your line is open.

Christian Schwab

Hey.

estimate Just a crews wireless rough guys how can you many have of, how many wireline give currently and you have crews currently? you

Scott Hisey

information workforce to similar employees our and our that others break any grow continuing of our balance the of that Christian, contractor think out to workforce in to We're wouldn't and would contractors remain industry. don't our I We either. peers

Christian Schwab

everybody the Okay. put can expensive, the a I it's workers to you're taught It's but Wireless of companies understanding, Telco skill has, lay my expensive, obvious, are something think be set afraid I to unprecedented actually. crews at But else not is wireline aggressively pretty guess not fiber, on take very wireline off it's of power, crews significant -- as long kind expensive. and that as crews heights, are capital want expensive. right? are equipment levels probably that leading it's something

just current I'm grow to materially your you're So on, going situation. given confused cash that how

Scott Hisey

Flextin operators involved So senior to is and the some the has same to the committed equipment. all our our peers in-house of as a major we've that, from the cable pool, needed with largest pulling have is in builds building. contracted the worked And decade. And have last the industry have telecom with bought team as construction equipment equipment prior been an this warranted. out operators and we're lot we of that build leadership for and work from And drills with companies perspective, and we've [ph]

the There's being typically, our us with and opportunity long same our like, geographies do have have the for performance. business. gone in sensitive reputationally, I a anyone veteran our And we of we QualTek a working job relationships have. So term that our and as lot else's. trust developing industry relationship really to good people of feel a folks in is that And

Adam Spittler

less in terms historically. contracts, the payment business what carry what significantly accelerated a the the see Christian, build just our in where is, seeing we're are customers standpoint they're structural during from cycle And given in you offering than the overwhelming demand

Christian Schwab

all Thank you. the for questions. Thanks great. Okay

Operator

questions. no your for participation. We call. you Thank conference will have This conclude today's further

You disconnect. now may

QualTek Services (QTEKQ) 15 Nov 222022 Q3 Earnings call transcript