MTRX - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Matrix Service Company Conference Call to discuss Results for the Second Quarter of Fiscal 2019. At this moment, all participants are in a listen only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder this conference call may be recorded. I would now like to introduce your host for today’s conference, Kellie Smythe, Senior Director of Investor Relations of Matrix Service Company.

begin. may You

Kellie Smythe

President welcome webcast Call. and Service section Hewitt, website. Service Second the be – Cavanah, Company’s and presentation website Officer. Good we Investor can materials on to the be today’s of Company Earnings will Vice Kevin and Participants Executive during John Relations Chief call Quarter Matrix Financial Chief The the morning using Officer; Matrix and today will Investor President on include found

report me forward-looking the you and and the in may ended about company for on SEC. result that To non-GAAP Service our that be of extent our filings on let Matrix statements call, XXXX. John Private please company may XX-K turn of discussed Reform Litigation remarks various Actual company factors, statements President reconciliations purposes the today’s to the year the Company begin, of including measures, subsequent by call provided I differ will Act various will the future releases we those Before now for remind results in constitute forward-looking from Service those prospects on utilizes of these make as press the company’s fiscal plans Form materially with the CEO expectations, in and a Securities by Hewitt, Company. annual over XXXX, the XX, June various Matrix website. made indicated and for

John Hewitt

of safety the performance of Award CEO, Award and publicly man everyone years Matrix in performance been prior Company Service Group I’d Board hours it’s our across recordable those us. Safety year Directors time worked safety Each accomplishments, zero year million exemplify and the best under Service Tank awarding and consecutive culture. these Thank fiscal team’s whose this to joining to Maintenance Directors Inc. our Board Botwinis. morning. Repair morning, teams Among best about two the good the and safety Randy presented The fiscal Excellence many incidents. this thank like by you, leadership for in you of Safety having XXXX Kellie, celebrates has X this to recognize the Matrix with over of

the Catoosa has John fabrication OSHA fiscal Voluntary Our received facility, achieved a recordable Award. of incidents recognized under CEO Award with and the in This XXXX Vick, under Program. Safety fiscal leadership X been XXXX Star team also Protection the

job I more as regional, also safety is two international of to at want addition the well on the to across our North forefront XXXX. extremely The supported by of of congratulate X,XXX employees those also everything recipients, employees America as day. who these in our of and performance fiscal than around incident-free all these in the recipients every proud culture offices In sites do. themselves award our worked of of who I’m commitment our put the who many employees those live our and they them corporate

Moving our as the on. and are business performing markets Overall, anticipated.

in trend fiscal prepared his this earnings date, expect improvement Kevin we and start to remarks. XXXX good a with about in this you to provide off We’re details more will our with continue. to

related does, on markets to he and growth. touch backlog Before like the drive I’d that our

in $X.X look rather trends our the important business, year to and it at have backlog long-term We with quarter. in three than highest nature single is As the fiscal of more billion timing awards we years. entered on this in any backlog of backlog, calls, because past discussed in

third forecast year. back Based for as second awards of XXXX as the received half coming quarters, well the the and We in these quarter also strong expected with fiscal of expectations close of remain after significant unchanged. fourth project awards be awards those to on the the the in balance more

of One the storage strategic business. quarter win for highly third awards another solutions represents these early

future for we over XX a of need demand natural our Over is Electrical of sources. markets, capital Against The Infrastructure to coast-to-coast U.S. have and XXXX. and for Among representing options awards in focus growth gives markets. end Industrial low, awards, the had levels indicative expansion months, iron mining maintenance, segments, the needs, this plan, in China; we strength customers regions, chemical demand offering continues we demand, $X.X markets as expansion improving the well our support the high labor The maintenance same facilities. will across Likewise, values. and In energy takeaway believe industrial the as U.S., increasingly projects. goal, confident the storage trade the segment, modernize X.X, our vessel prices, overall begin which remains billion and ability such capacity products bullish international the by and North billion with book-to-bill Storage the refined on we segment, our projects is as I demand also growth a the wage backdrop there industry of last finally, the energy in respond and which $X Europe create leader. infrastructure This execution customers am an turnaround oil, all the across markets; this continued key a we’re across services. our high. for our objectives. southwestern or natural producing in and Solutions, and and U.S. and brand To At for demand and strong view turnarounds ultimately and our of NGLs. are and remains to as customers EPC commodity to will upgrade us in chemicals them: the and well strong world on on market In and including tensions, book-to-bill growth is this opportunities regulatory industry, consumer confidence That now our end trade leading energy growth our for IMO organic stabilize, they our with prices to U.S. power better. specialty revenue through ability to our America protection of and plant of sectors, our as when just return affirmed growth year service strength expertise in and initiatives, our transmission, And abundant and delivery construction which for in growth be demand we service support being the resolved. of grow, limited for distribution we’re with this targeted demand for infrastructure for groups. expand energy our acquisitions. significant in and strategic gas, customers strategic commodity our our our mindful the of international Gas position our This be of are time, will and to turn opportunities other competitive long-term revenue and timing demand is gas and based steel copper, cleaner also rising which energy to work, and than the LNG our global week, unemployment both market accomplish I’ll protection and fiscal in America’s terminal and crude into finish and, significant long-term which energy, across to X.X our on and select urgency driven call and positioned reach developing & directors industrial and With board especially Oil offering confidence sense multiple to continue for and in fiscal capital and opportunities in tight across provides through our more includes core burn, capital all energy acquisitions, our end of opportunities our confidence in of a consumer finally, turn, and by energy immediate substations. an North the refined there investment people as geographic position great business. is slowing as operating And low will our us tank for countries are natural global following: and our the creating Kevin. products global economic capital associated Chemical, U.S. company high additional and strategic uncertainties. well over and maintenance, voltage of integrated in our and ability the opportunity said, expansion and significant XXXX continued aboveground on our organic products, all capital In needed domestic Western markets and allow meet growth and of engineering the key across create developed strategic

Kevin Cavanah

start quarter. takeaways with specific Thank from you, John. the want I the to

First, began to the revenue second last ramp year continued that quarter. the in

by Our a third revenue been improving fiscal from has to $XXX resulted XXXX quarter. last four XX% quarters $XXX This the in in driven increased million over million low market upswing of in of has oil, greenfield in been and and of a execute storage from Solutions year. segment this a expansion Growth our crude time number backlog we projects led as LNG for XX% NGLs. quarter the last has has by conditions, increase this major which Storage

awards, level for combined project segment into investments growth continue existing XXXX. to enhance significantly of to strong We Industrial The balance These facilities. with has as volumes expect made steel fiscal backlog, will fiscal awards iron our also grown the from modernize capital revenue their segment. and and customers in of this XXXX and drive the revenue

is also the Chemical We we including processing Gas work projects, expect to are capital on the strong in of of Coast our solution as engineering and revenue union season. providing toward Oil West a year. continue more the this trend the expect segment end markets. midstream also this gas fall fiscal – the work, Incremental has & to move expansion refinery to turnaround increased we

in in forward, Electrical to strong in work lower a quarter. Looking – segment show turnaround signs this beginning has is than anticipated including but Infrastructure season, recently been expect performance the spring across similar completed recovery. the second segment, we continued Revenue this of to

As X.X% the a power margins, discuss are business. will of topic second to to confident continue work, now which gross respective revenue I on segments. outlook growth the strategic the is our in quarter. reminder, revenue we of segment were view a next Overall, is the would majority delivery which The based the in of opportunity for comprised like be this

in margins than work While those exactly X.X%. highly our well an was quarter as margins where This competitive what as by in in the bid periods environment of several forecasted is this improvement lower Electrical over projects. prior quarters, experiencing impacted segment, we the on gross quarter’s Infrastructure past previously were in margin a some are

see as our We we our the order higher to that a of our fiscal improve the expect to this utilization the core this to spending covers year Northeast improvement and market end more could of this long-term infrastructures. occur of move of this need believe last to decreased X% segment XX%. fully couple the range In overall this from through of toward will segment rest has of the to produce range, volume consistently years. margins This impacted revenue in in of produce lower

addition, a consistent engineering maintenance long-term the been turnaround and and work. improvement activity, XX% Gas the expect XX% a margins Oil over in And periods, of gross to important produce we awarded to third year. of legacy business similar the is achieve This another on solid remainder The target reimbursable achieving recent improve The based the segment and the gross a be for near our work Solutions fiscal quarter for margin that to up, improvement slower market quarter, a while X% year margins margins approach were volume this half this the in within better range targeted the as upon of of we Chemical of of the year levels half than & to project the the margins our midstream work quarter. the we second completion margins the in steel of geographic was should as In anticipated, represented the Storage target however, In our of on California year. gross the second and XX% normal operating more gas the range as X.X% range. The higher by projects X.X% capital half fiscal environment our impacted segment, will consolidated long-term lower-margin and current already result, by segment Industrial major project gross high environment, in our XX% recent within business. outlook initiative finished first significantly have majority of driven delivered should remains somewhat for second year of range is we significant margins market within half XX%. and of for our of consolidated XX.X% iron strong, in the and performance the within projects. and ramping up of In are to quarter margin the of is expansion the is results. levels that summary, were

and As just guidance. a described, updating respective result I’ve gross margin our we revenue fiscal trends of the are XXXX

improvement impact positive guidance margin increased performance in half the range year is margin our billion of of year. the new are We half $X.XX from offset the volumes $X.XX previous by to revenue the revenue $X.XXX range first the billion the in and increasing of The $X.XX to of second to of billion. lower billion

guidance unchanged a result, at $X.XX $X.XX. As the EPS remains to

second As the half of significantly year the third over we improving the much stronger first discussed previously, the fourth significantly and quarter have the with improving is quarter to the second third. half than over the going be

saw by Solutions year. the performance year. results revenue which year-over-year compared with The profit second I’ll last with on quarter same to in the gross quarter last to million significant quarter the company recorded Consolidated for to Electrical compared Consistent the quarter the was and XXXX, $XXX lower a specific second first basis, the offset fiscal compared of prior during our year. of same partially XX% in segment. segments was as consolidated saw million Now $XXX a million Infrastructure revenue $XX.X quarter Storage Industrial discuss million improvement of the the $XX.X the we in up for period

the margin year, to the that booked As I’ve the we quarter in discussed from gross X.X% compared previously, overall for benefited before X.X% our projects was on which prior closeouts downturn.

year to As and revenue our utilization. a last during was during improved to resulting $XX.X construction and million to million levels Consolidated through by margin of ago. period compared controlling that focused us we improvement in continue structure the couple anticipated, $XX.X fiscal overhead SG&A as margin move the cost We’ve years. expected driven is volumes higher backlog, impacted the downturn on of trend this improve, profile XXXX, the continue our

leverage structure continue this We grows. as our the cost will approach business and to overhead expect

the implementation rate in Cuts the was X.X%, and tax effective was line tax expectations, balance which from XX% ago The Act. rate which period the and effective Tax XX.X%, a in was rate quarter a for of our year Our year. Jobs for with of same a we are forecasting fiscal negative benefited the the the

completed prior As an per year recently quarter. $X.XX $X.XX the a the this compared benefit, earnings of the produced share result quarter tax of produced in as to we

to years. year. $XXX the of million, $XX.X current $XX.X first $XXX million gross in during recorded the compared fiscal as from per the first million was to $XX.X up up SG&A XX% same expense the million Consolidated the last share of was on $X.XX the prior The compared current the Moving prior closeouts. prior of of profit million $X.XX which fiscal in company period $XX.X project the year, half X-month half the Consolidated the the million and XXXX of from and for first for revenue results. year year of half slightly in is earnings year benefited from to to year

the balance to Moving sheet. on

cash with be million, financial debt. of quarter strong liquidity a and we total $XX.X X enter of balance Our million $XXX to as continues position the

our buyback. improve the share. the sufficient most expect the average use or or cash per support $XX.XX $X.X through to stock operating business, of purchased shares December, consistent to course we is we recent was liquidity quarter While our of year, results. current an One with liquidity of In XXX,XXX price million during the

call. approach opportunistic. comments our will that, questions, now which, we will we to we on have As continue ending will more forward, after a the for stock move before open buybacks few With be

Operator

our John question with comes & Instructions] Sidoti Thank first you. And from Company. [Operator Franzreb

may proceed. You

John Franzreb

Good doing? are morning How guys. you

John Hewitt

morning Good John.

John Franzreb

the with And you kind from? benefit in to that the incremental start revenue did why line? of EPS we incremental that come put have does doesn’t Can Where it guidance? the

Kevin Cavanah

Yes.

So I’ll take that.

we’ve and profile this lump sum it – as year, could as revenues but So good a as solidified, you revenue, high have we’ve volume. the some margin the – our moved not of be through of could quite a were. the lot revenue accelerate, of know, seen increase work that as kind often presents in it be reimbursable And

look take of gives we’ve you mentioned at the you the margins and the as would’ve first fuller takes, in Now we as that liked. the when year quite weren’t and our strong year gross all half

didn’t improved, segments through they we margin as half they into said, at margin expect anticipated. mentioned, should the With least get we as move we While most And three that much improve as of the – targeted our do our I year. of improvements last ranges. as

So the added the we’ve that lower of result, guidance. margins in of a all half, first when up they EPS And the offset. gives you takes maintained as and add revenue, kind

John Franzreb

see XXXX now and with June? at Have an that the Fair between have would the Okay. come acceleration are and suggest order to opportunity to acceleration? Or in And above business that to see just that a exit X.X you’d book-to-bill you expect enough. pipeline you fiscal begun bookings. looking to in

John Hewitt

that we’re We have working we’re projects on opportunities several that project – strong on. pretty working

we been barely the able competitive remarks, business, strategic are to our negotiations to a a awarded go be in the should prepared on And projects contract of stage for, in throes project January. we’ve projects mentioned be have they in the FEED instance, we Solutions pretty win in position we’re final other in anticipate For several really that to that those that we in and there’s forward. low Storage

beginning that out, We be pause backing So going to there bigger was we from on had some we ones the the knew projects as come a big that the – seeing the we anticipated. always of of now saw end backlog. felt into we’re year sort of last year, these ones, the some

the again, projects to are bigger Some six the next going – of to in of projects some get that months. nine hopefully them terminal the backlog over we’re

whether this we there But offering, very year. so to in they And there, about in, early the year – our be got timing energy feel next some part the or and service will sell fiscal of position come it will be good our storage markets. in there into what fiscal we’ve

And strengthening may of refinery that moves continued our – just organic how our so turnaround business, make, we’re that, combined that to going Electrical and already is starting business, what’s our in then and with Infrastructure on strong markets continues industrial into year come iron early for steel, even in capital that opportunity projects part of next to be some in this plus strong, which the year. in the or larger very

So rate John, see, our like is to our the out assessment timing in for revenue of think or year, the opportunity we the it’s – for burn one But based get we us that the on better it’s a usual, half us. the projects there. of a of timing second

John Franzreb

turnaround timing the margin was hit you margin the a, one bit low hopeful when what’s the targets. in the that me the normal be gross about, kind the XXXX? fiscal storage And you your great. issue? from when is longer to first going talk in also, a It Great, margins And you business back sounds on little no P&L like downturn margin will Industrial, that’s the you to infrastructure. Could businesses, commentary an your gross least get the profile like at that just will the to of other it looking on of helpful. expect think took

Kevin Cavanah

I’ll by take this this segment. and I’ll through one, just go

legacy I flowing So far got with think at really Gas segment backlog we’ve quarter. Oil We this that we’ll Chemical. & XX.X% through much start as hit point. this as that don’t

segment. And that so think is don’t impacting issue yes, I that

ramping quarter the I think, continue downturn, to margins I signed end Definitely, in the But this Then you last normally it than that – expect just news a storage. prepared in and of we very we’re did is were as talk let’s the think level mentioned lower about level. to up. good like. the I or we perform signed at remarks, similar that the in projects look year, at the we’ve at segment the we so projects would second we’re the this

segment In in I think too strong been quarter. expect and much margin impacted it from both have might downturn. the you that So the third Industrial to see should segments, performance the fourth not in

end work it three segments. that as improved of time that other we’re or less the than quicker of of a segment, think about talked on there. mix segment. But calls, to still be the segments. are And would be of the mean, definitely I that little I think It segments piece reimbursable the good that the earlier through a bookings other I through there’s overall flowing line are the still we the complete meet the that Electrical. working bottom at we’ve – bottom there the think segment it. of for rest segment. range do as we toward a prior end the three not we’re and behind moving going should strong the got just of The not that the as be range at we year that just rest of least certain, little one as may some I It’s

moving in the looking So as X.X% closer get that be back X%, through year targeted to we to of is definitely the ought the up a ranges to and future expect, I to move low rest then would periods. we mark, one X% and

John Franzreb

Okay. the Thanks, ask back I’ll and get to a follow-up. Kevin. queue

Kevin Cavanah

John. Thanks,

Operator

with Afzal Markets. KeyBanc our comes question Capital And Tahira next from

may You proceed.

Tahira Afzal

Hi, folks.

that are It’s into reasons can for course can seems, rule how roll, just today, at the of you as shouldn’t in versus productivity? let’s I your thought. Versus, guess what have a by be might the work projects follow-up that? the lower-margin particular Is little anything from of say, a beginning tell, bit? we than year you off a it? of a labor it slower read fiscal I question. So where Weather? you Or Any normal been it

John Hewitt

Yes, storage just lot those getting work, the of which normal I and ramp through the on projects, and course was predicated a material to larger the our just lot plus with engineering really think revenue that – major the of the new correct. procurement timing or business, actual is those a broadening clients of up things of of a the and our get it’s of projects, design start better interaction

And ground a or and – into so when later. shovel go shovel not ground we a thought in we put may the might have until that two QX, the in month

roll which So of it’s big – just is the a deal, not it’s of projects kind a – way but those kind just together.

a depress get mix sort of those which of also the to work two, margins. between you So of that helps combination

Tahira Afzal

Got with engineering look it. further? projects numbers could the little push and right quarter a out this words, are now XQ far feel around now, you And, the point operationally the In potential comfortable those new delay if that them ramp? John, what third the enough other where ones are, at the maybe perhaps between risk at you be could a or to

John Hewitt

Yes, we’re very comfortable.

Tahira Afzal

it. Got

Okay. to its was landscape. We sell terms angling in business. the know really I next I competitive McDermott’s have guess the question that And been of off storage

lead some to can Any move thoughts from. Last that the and thought you some dislocations divestment seeing Is same? might competitive the that? here there. the more competitors generally are around quarter, McDermott dynamics benefit We you

John Hewitt

them. process not not divesting they seen We’ve aware publicly. in their I of are where of think anything we’re

opportunity and from had we a I competitive vessels. where standpoint us think around more creating seeing around specialty – small is to for creating expected, is we’re mid-scale LNG as

going the think what the about – ownership business who I marketplace is. the into structure will what to – ownership going look in some future, business is is the uncertainty like their what there’s that be, look the to

I playing that’s if so And to for field an create level even else, market. we nothing in think helping when that us really, more compete and – that’s

a sort a for that us, up again, said us end for it’s think of positive – that I unfortunate So it been for employees business eventually. mean, the I been fortunately time, too, of Hopefully, will being thing positive last it’s them disturbance. – as for for the we

Tahira Afzal

And got the questions, hop in okay. have it, John, Got I queue. but couple back I a will more

Operator

have our may with a Franzreb proceed. And Sidoti John question, & from next we Sir follow-up Company. you

John Franzreb

and to I $X by just outlook expected much about much be How of M&A that XXXX. that wondering how organic is growth? was Yes. of requires the revenue billion

John Hewitt

and as confidence where probably is We’ve been was downturn because and years – ago, But Engineering be this on biggest much we’re opportunities that the I we did front our half. approximately of we’ve more want later think us, business moving where calendar year. this some the this actively for the into we are two for the feeling. that we’ve where year been on lot And year. to – markets in growth worked expectation we half XXXX, part the us expect have hold through Our active seen see and as in of a about we our areas front in rest we to so the been focus we’ll of acquisition being acquisition sort we later be of and moving our today of how would performing into and the here of calendar acquisition go,

John Franzreb

And we are you how kind size John, are what of And company? initially? talking about the lever up acquisitions to of willing

John Hewitt

pretty a view, know. got we’ve you as So conservative

acquisitions and be you’re an some more for And an area do. leverage to the see a Particularly – markets, power larger of on look leverage this seeing so particularly we we better to used around our delivery where of case, of the larger looking for us expand more the that at space, acquisitions, appetite may appetite in organization. we probably little actually will you the some strength electric may as bit may have what require we’re – might based in that us that

Kevin Cavanah

leverage be still that would fairly to I conservative. expect

I think two that an than it’d with and pay be less intention to fairly quickly. off

John Franzreb

Kevin. guys, appreciate you my you questions. Thank taking Great, I

Operator

question Stifel. And next comes Dilts Noelle with our from

proceed. may You

Noelle Dilts

you. Thank

all about thinking you multiples a the have international So like private the market? at last target question, in the if of the come seeing you’d just more maybe transaction what then market, sort pullback you touch to bit could could and that pay you’re given for expand multiples in how on your on also you’re appetite on that if expansion, down And be helpful. would

Kevin Cavanah

I’ll hit first. second one your

the going our brand. to international do storage the front, that of we’re back on on So

into that And But little a a Mexico. little so think government. us in right some over bit will a now in of as flatten of the that out time, – is bit Mexico there’s change disturbance – obviously, we because opportunities better. in for think of we And

in there’s think, then of so fuel be, U.S., and of We we maybe of need and the parts South for a And opportunities us lot America. out some Caribbean, switching into other the with think into the Mexico. for storage going LNG to

say that based So U.S. we’d company a a got a that’s perhaps I foreign looking a one foot first. foreign acquisition – operates that’s where be but not may that in that’s company in would be got – that’s may And a those those could it be probably or – entities. not entities, of

acquisition on couple our we’re sort again, we’ll been. just getting but be sorting it’s have back at going what that back of the multiples, mindset of your to kind So be and that last after brand. into years On of looking – first question storage out. on But the of so

of be couple in some delivery over power the probably If – consolidation in going about here years to trend the the of a Electrical business, the business. delivery Electrical you segment, talk next there’s

would and would leveraging we to discussion would, would along what than we little And be probably the with pay. bit expect would associated with that, we higher business, so had we the we around John like – normally to frankly a with multiples them the

it better feel sure can up you. tell We’ll Now today, that I a we in what is I’m move have that not time. for as

Noelle Dilts

And Okay. Makes sense. mentioned... then second, you

Kevin Cavanah

But transmission overpay moved I already at the we’ve and We’ve prices. the and already mean for going crazy, have have end already working to the of anything the work. we’re out not we’re not and We crews clients, on unreasonable – started distribution variety into do pay of Electrical, day, providing a going Midwest. to organically,

silly it anything overpaying as relates do And for so to we’re not businesses. going to

Noelle Dilts

think seeing Okay. tight forward? or sense. a of guess particular challenges mentioned risk the a moment? pockets Makes risk. where that do then And be And of Are at you labor see could market most the sort you tightness second, any briefly I moving you I

John Hewitt

think we’ve of effective that’s we’re of on sure been union I pretty shop merit are all our date making basis. to or projects So – manned, whether a

those some to pipe through we’ve steel trades But to a going been are but be, we’ve to projects, going welders of shortages and makers skilled way and And had that some able the couple challenged. work that. most will are fitters, on where right around erectors bola now, of our be pockets be certainly, so trades

but large get of certainly, I the area, – sort a for an to to tank tight crews think lot business, available think but it move we wherever presence, to employees for Fortunately an got move them of job if pretty jobs a with in And and will across to for us, be nationwide well labor. us, Gulf to steady us. of up not – And – those also end the we’ve to the contingent country too, market, plus our fortunately of timing recruit you they continue are. job them job, works labor it’s into with about are worked, our – our only they’re area able some and and a we’re Coast

part of So just or change be we’re things and have it’s we’re the through with. to we’re deal be of going to to to labor. work going going And for demand that, to the mindful going

Noelle Dilts

very much. Thanks

Operator

follow-up a KeyBanc Afzal from And Capital have Markets. with we question Tahira

proceed. may You

Tahira Afzal

back What’s know a of catch-up. there? And of some the Thank smaller upbeat. the sustained Chemical were are Is projects coming it of activity Obviously, driving a you. going back turnarounds? to are segment. seeing lot & you just I you period now they well? growth, Or and Oil seeing Gas long the pent-up the John, were as we

John Hewitt

I think bit it’s for little a of us. both

able that smaller some our projects now to mix a we couple than of little to into able we’re brand think, quality are been of our to advantage a, we’re of a presence years on we’ve you’ve we’ve the turnarounds to built nationally, because matured, I better, think expanded where – that there. some take that’s and market We’ve larger as what a do. I of The more add fortunate might work our the going – are as have some as our an we the competitors ago, over of got work teams gain organization. we’ve seen seeing share been

City and been opportunities to we’re capital refinery, there’s see announced And going think to to so for we overall, projects recently the Salt in and out win. future. things mean Lake of a how been in, demand to that into interested for XXXX sulfur the us. We we’re impacts sulfur industry going there’s IMO which is won the technology the a high is is low there us. one We – good maintenance I project just that I U.S. which first be fuels, be for think where of pleased pretty And octane automotive going where in so that basically and for important the that’s low project, put with it’s project,

combination of I a it’s both. So think

I is on our more of think our turnarounds work, win take maintenance stronger we’re project-type but brand us well. fair as to getting to opportunities share continuing and for

Tahira Afzal

was Got helpful. you, That Thank pretty John. it.

John Hewitt

Thank you.

Operator

Chief now that remarks. our may and I you today’s conference. Matrix concludes call would to President Mr. Ladies any closing portion Service Hewitt, like Q&A John now and Officer the of over to Executive begin. Company, turn of Sir, gentlemen, for

John Hewitt

you. Thank

we key believe call, today’s the are. what reiterate to end like we I’d As takeaways

this continued will approach through Gross the Supported predicted, will trend of our second half. the revenue that has this year. opportunity will fiscal of fiscal by improve as and our pipeline, began First, our last project the consolidated backlog continue ramp targeted year-end. business, for levels margins across we business first and year by in long-term half position most the

revenue raised increased by second strong performance the We revenue the created and half the guidance the in by year, half have the guidance in therefore be but balanced earnings lower the of first will year performance fact expected of held to the due our that better gross margins.

will We or that achieve of are a finish guidance. will book-to-bill our better, with fiscal we and confident X.X XXXX we

and of our company, awards Finally, both position our objectives. strength in and markets, with we the growth long-term market confident today’s want of given plan, project thank talking elements of ability look to all of strategic you our our you for are meet forward our pipeline in and strategic our the to call, our and knowledge participating end again I in to we next pending quarter.

Operator

thank and have Everyone, Ladies program, today’s day. all disconnect. conference. for great in conclude does the a you and This gentlemen, you may participating

Matrix Service (MTRX) 8 Feb 192019 Q2 Earnings call transcript