STRL - Earnings call transcript Q3 2019 | Sterling Infrastructure, Inc.

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

Operator

Greetings, and welcome to Sterling Construction Company's Third Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions]. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

Before turning the call over to Joe Cutillo, Sterling Construction's Chief Executive Officer, I will read the safe harbor statement.

include may today discussions forward-looking statements. Some could results differ materially today. made statements from Actual Sterling's and could recent a refer most Please to XX-K and description risk projections more of XX-Q factors these that affect assumptions. complete for filings company as result statements or of update events a future no to information, The assumes otherwise. forward-looking obligation new

to call over like Joe Cutillo. I'd Now to turn the

Joseph Cutillo

adjusted pleased in Thanks, the net which of call. This quarter joining our Elmer. third quarter well as Good morning, improvements quarter week we strong we income everyone, closed to are as and double-digit acquisition of another thank first quarter. the year-over-year the you for transformational and discuss morning, fourth a third announced

focus be and while continued the growth course on reducing we our In overall we stay bottom disciplined quarter, risk. line of to the as our strategy

is quarter success the continues This commitment our another of strategy yet to and that to deliver. it example

were consistent For our versus at revenues year, call. quarter flat second million, the prior our relatively $XXX quarter with

executed margin onetime acquisition gross excluding project XX%. up approximately our was income, dipped yet to Our net charges, adjusted slightly due mix,

residential grew Our an our points recent hit margin X.X%. increased XX business combined from X%, basis to gross and all-time of high and revenue our our backlog

backlog to and be Our under core markets continue all-time our remained combined highs billion. the robust, we quarter where expected. total Overall, near $X.X just at finished right

acquisition Plateau is a is ways. the Plateau. leading large-site of in we transformational a truly and announced acquisition development of In services the for quarter, many provider us

It helps the jobs. and traditional to size our generally Home end expanding bringing Depot smaller like us much with Plateau are as our duration much reduce Google, It customers Southeast overall our other of heavy into for on and up faster and picked average highway and of us blue-chip projects customers project a risk team continue an diversify their UPS. and Sterling. next of to Facebook, the than we outstanding generation markets by and along First, management fast-growing end parts leaders enables

to will over a where highway. come Plateau, will once revenues combined our create Sterling, less with double portfolio of XX%, blended gross than our XX% from heavy EBITDA margins and increase our business

In service addition the existing its footprint. to within as well we opportunity is believe there this, an existing Plateau's offerings to expand all Sterling footprint of as

Now full let's starts to fourth the follows. move quarters weather quarter, the and has recent the enabled adjusted the delayed third increase X along with headwinds Despite our full year. saw the to on of significant the projects, in the several first inclusion our we major of results us acquisition guidance of the quarter, Plateau as combined in year

adjusted Our tough. $X,XXX,XXX,XXX and income be very our and year and between between a that million, a started revenue $XX net off truly outstanding be $X,XXX,XXX,XXX, million to finish will will $XX

you turn to Ron? like give year. to I'd that, over with details And to on and it more the quarter Ron full the

Ronald Ballschmiede

see Thanks, the Please press of I disclosures adjusted our release. company data related am costs XXXX discuss during of and and expectations. acquisition financial reconciliation X, an and morning. update XXXX. earnings provide the $X.X in quarter quarter prospective incurred our supplemental third the November million third non-GAAP Plateau good of another operating Joe, and solid The acquisition-related results Plateau on pleased to of quarter and included

from highest basis XX, XX, combined September an of X.X% to quarter. XXXX. compared of construction backlog beginning from XXXX, September the was margin up XXXX X.X% combined of The million XX XXXX, the overall basis totaled of recent the XXXX. at third points in of low at Combined margin history. $XXX civil which beginning awards, beginning backlog, as $XXX gross unsigned At X.X% up was from an points our our includes bid our million backlog backlog XX, September with September XXXX, the and was and backlog increase gross XX, backlog margin $X,XXX,XXX,XXX, in segment the heavy XX Gross December at

Our XXX% book-to-burn heavy for the civil construction months backlog and for of factor XXXX. of X first quarter was the XX% third XXXX

our civil which construction heavy residential figures slabs. reminder, reflecting backlog quarter Residential XX% cycle comprised are performance entirely our does for a not accounted revenue, Just short-term of construction, the report of backlog, third concrete projects. of

comparable of for Consolidated for annual revenue and million quarter flat our -- with with and was and $XXX our the third the XXXX expectations essentially XXXX was quarter. guidance consistent

fourth business the revenues, as fourth revenues base quarter third the quarter XXXX to XXXX be comparable quarter. project the We pattern expect reflecting mix to same

the to increase civil heavy venture joint to construction We on in due of XXXX revenues ramp-up expect projects. new design-build

an from the heavy projects were large design-build X.X% decline controlled This revenues and lower million work. $X.X aviation projects, attributable decline by The XXXX. segment offset of or from our was to higher construction the construction joint standpoint, civil prior end X complete declined $XX highway million of primarily of fully operating venture From quarter. revenues which was substantially year increased at by heavy revenue largely

over completed revenue of third construction the of construction in comparable of residential the growth of an increase $XX third over slab. increase were revenues the The Dallas-Fort per slabs attributable homes, quarter number XXXX. residential completed quarter less the market The with which the was other Worth attributable half residential reflects XXXX market. quarter. continued the The the Approximately increased shift market, XXXX -- quarter legacy in X.X% into third to slabs by half smaller generates to million, Houston Houston expansion XXXX primarily increase into revenue to of the XX% during the

lower quarter million $XX.X margin in declined Consolidated prior XX%. gross million of the to a Quarter-over-quarter third mix XXXX. quarter. XX revenue to the by completion construction compared points projects decline end margin The basis driven large reflects gross was of year the profit of at several $XX.X primarily in XXXX the

and efficiencies our margins Houston grow scale, than to in scale expect Houston build has our Houston. market we the build ramp-up we well-established lower Prospectively, as the of improve. operations as Additionally, Worth the expansion we generated Dallas-Fort into and margins

lower G&A quarter design-build the for primarily was expense $XX.X prior million projects. million G&A decline quarter. compared XXXX due $XX.X was to activities third for prebid in The in to the year of

decreased operating believe million, the quarter a by comparable As the decrease XXXX third interest of in will of Other expense revenues, XXXX driven third a XXXX. result $X.X operating XXXX was G&A quarter. expense decrease was of our year The project expense quarter of approximately points margin the revenues primarily $XX full XX mix. that lower basis the million. million to other and be percentage members' expense lower for X.X% $X.X from We

$X.XX acquisition-related X XXXX. the We incurred million per months September Plateau XX, ended during costs of share or $X.X

third operating compared $XX.X the quarter. for of in totaled the quarter Our prior year XXXX million million income to $XX.X

X.X% income X.X% operating respectively. As a third percentage million of quarter and revenue 'XX, and costs, -- third XXXX operating for X.X% of revenue, revenues. $XX income, or excluding XXXX quarter was was acquisition-related

a to Income expense in XXXX of of decline borrowings, for tax decrease third third -- The were was provision was down rates. quarter lower $X.X quarter million higher the due expense due compared to third million, interest quarter from offset the XXXX. somewhat Net primarily by the year-over-year quarter. in was period. of the interest quarter XXXX noncash to tax million lower $X.X $XXX,XXX the $X.X in for third XXXX The XXXX

down Finally, from $XXX,XXX of quarter. noncontrolling $XXX,XXX for totaled the owners' the comparable interest expense third XXXX, XXXX quarter

to per to of full diluted quarter interest The We of approximately of income in third noncontrolling the resulted net XXXX. of total items compared of all our owners' $XXX,XXX year diluted net of third XXXX $X.XX $X.XX expect of $X $X.X share million per or for net quarter income or effect XXXX million net share. these income

Third XXXX diluted $X.X to per was excluding income, compared net XXXX quarter income quarter Similarly, per share. net million share, of quarter acquisition-related excluding in costs, costs, quarter acquisition-related XXXX XXXX per $X.XX was the net third million. $X.X $X.XX of share compared to income

million, XX, September in quarters four XXXX for acquisition-related costs the for was EBITDA excluding $XX.X $XX.X XXXX. EBITDA XX, quarters September million the million or $XX.X period. four the totaled ended ended

balance million, end joint of Moving second million million XXXX. of of of a third our cash of $XX.X third of we generally cash the balance cash of quarter $X.X million the XX% sheet, million. XXXX construction compared quarter subsidiary quarter $XX.X ended available $XX.X consolidated cash to with components and of venture $XX.X XXXX balance included owned the at our to cash The of

totaled Our XXXX compared net the XXXX September cash by $XX.X provided for million ended $X.X operating activities XX, million the X for months to period.

million we we million Subsequent for a to the heavy fourth to collect the of quarter. $XX resolved in highway the end dispute quarter, $XX expect project civil to which

our historical total and Our debt for expect net of from $X first third XXXX. approximately with operating as term to million to loan quarters repayments for Consistent our XXXX, of seasonal totaled the other the operating period. CapEx the payments to of we three the XXXX quarter flow additional XXXX -- be $XX.X prepayments first bringing months cash flow In our free million for million, year compared cash same consolidated X $X.X trends, activities debt sorry, the comparable income. full made $X.X we of million consolidated our

statements. the closing of to enhance In understanding the October refer required sheet XX, capital order which and October structure I transaction, Plateau X-KA, and significantly. annual the Form of balance on funds XXXX. X, X-KA flow, Obviously, operations to forma changes Form the of interim description Sterling statements new Sterling Plateau detailed and on Plateau The with the the historical your and includes you filed consolidated XXXX, pro our income transaction, would

the turn over -- call Joe. will back over to I Now

Joseph Cutillo

quarter full and out XXXX. excited of coming We're Ron. Thanks, the extremely our are about year outlook optimistic XXXX about for the very third

record market near further with and bring aligning a growing Dallas will perfectly rapidly margins. our to with accretive Plateau efforts, expansion is high is record is backlog residential The geography. outpace and opportunities, about growth Our highly with us high in Houston margins growth

together, more years platform for you a provide it When for a all be many follow. Sterling transformational to XXXX will put and year great

our provide will year in earnings XXXX full during guidance March. call detailed more We

it with back questions. And turn to for over I'd any that, to the like moderator

Operator

Instructions]. [Operator

KeyBanc Our Capital first from Sean question is Markets. Eastman,

Sean Eastman

guys to on just Where and margins 'XX, when are for starting on relative in an 'XX just The outlook revenues I'm the get financials Plateau to kind guys first deal. Plateau. those Plateau's one, trending disclosed? to relative of you update curious XXXX you entered

Joseph Cutillo

with weeks so 'XX. feel Margins going pipeline nice they've consistent that owned very can few things. think a said business remain be X% projects higher, we're is comparable as number tell see all over brought in what but I we couple we we you, around confident go-forward If in to them, X% good of nice and where we the with the 'XX, very the on have expect to they call should feel have year years, of feel they perform a into bookings, they're we into I'll -- growth Well, along, on we that going basis. historically We've at. like the we go into a X that I'll some trajectory 'XX. really last next projection very comfortable about margins

seen erosion or concern haven't that, Sean. on us So the we any would anything margins with that

Ronald Ballschmiede

had purchase sizable accounting of I what to bulk think their some think the is will the we equipment, all intangibles. the value, property, do. is require other will is of liabilities pretty Obviously, for write fair out plant missed had which and element to a of but which assets amortization, for I to some magnitude and which there create us

and with just in believe million the appraisal will amortization health, that $XX we quantify million. incremental those our to really to between of with be but continue are $XX trying We -- forefront

course, of from So into our and the future pretty factored quarterly substantial, of results acquisition. day that's and our

on that of And I'll turns. backlog instance, addition, average, in that average, related people of have but longer of will course, backlog. months -- on quarters those on Plateau remind for In a that, backlog pretty about X Plateau the close that, less as that burns, noncash turn for than with impact negative in quickly, intangibles than ownership. to They total turn a a the early some little to will

so that's sort of So far. the we're seeing what highlights high of -- picture

Sean Eastman

maybe little bit. And just helpful. expanding a that That's on Okay.

should we As the the sort sort costs, year -- of an integration of acquisition GAAP next incremental pindown get at kind considering to SG&A a as into we well, next year. just be accurate accretion that look for of just on

Ronald Ballschmiede

Sure.

the million $X et our far, embedded folks that so for company et to we spend So are will incremental usually all and business work let operational inside a infrastructure cetera, believe It's for them synergies. bit. the we continue the bringing an to in time over public quite an Saxon cetera. no have opposite from standpoint. putting -- in synergies There -- announcements We me reporting, requirements of little lots about asking early start start essentially with

out So -- expense will coming our annual still of incremental that's $X of is our be the estimate million there. best what

Sean Eastman

around has XX other months update just close Great. the we're progression. kind us leverage area what leverage progression then leverage been the focus reduction? of on of the just the deal you Okay. kind next forma in And of at the the of targeting terms maybe and Could deal over pro

Ronald Ballschmiede

Sure.

So at multiple over secured EBITDA debt from is closing, X standpoint. the just a

loan $XXX run two, a revolver, So But term nonacquisition year of is is than the under million two more are million period, of and that throughout make of $XX XXXX of The and year, target. we out leverage there. to of is, spread borrowed that around what we sort over the think just with that. payments the payments which rate sort the get consistent out goal $XX expect approximately to we about is in to all which the sort I performance the scheduled down our debt million

Sean Eastman

shifting was bit. helpful. And of to a Very Okay. then the plans. curious the just margin gears progression on some residential just expansion little I relative

the margin are on any in kind are maybe of of kind So growing assumptions drag into should a expansion plans our and segment. wonder cities based expansion sort you expansion there term near on Houston keep I just subdued whether that footprint. future and in just into is if continued we guys of geographic the that other the table, clearly,

Joseph Cutillo

we'll beyond, had to what's continue capacity I shift really prudent Even Houston the over-exuberant they to, a housing I'll Dallas high. grow steady. don't into be members, houses builders Board that what is the say it's very of the XXXX. expansion out to to we the Right the of $XXX,XXX and demand so now, as to not Sean, above I'll developments gone interesting are think had have below. very, held into we've convert to we go Houston on out margins. the to and call, would very today, some have and the houses below. trying and I'll communications the But margins all And builders, seen Yes. I houses -- stayed do slated $XXX,XXX how it, call $XXX,XXX $XXX,XXX and that now, has go we've the though it, seeing shift for, right figure has and land homes we're and with call

smaller. The good news is the slabs, they got

you up Dallas -- will As year be was next in revenue, X% rates count. X% able growth at rates saw, XX% the than margins. maintain slab its be a to we're the will Houston little growth drag. higher Houston Dallas. And

you will March blended downward on a slight there. the get So tick

Ronald Ballschmiede

help not we're quarter if in talking margins. the I in third And -- $XXX,XXX the to Dallas, numbers. were are think just These margins Houston's same big as incremental the

Joseph Cutillo

Yes.

was it I think good a perspective.

Ronald Ballschmiede

Yes.

Joseph Cutillo

much where some has And Dallas. the Houston some some closer base made with team in we the are to have we improvements. great of nice really costing getting and supply The done at job of a

customers is relationships critical from the thing As when supply new same, that they're starting with you're built new, even and and market, the though base mass the whole in are imagine, you there. get to a enough can scratch

Sean Eastman

Okay. Great. one to up. And just me, then wrap for last it

characterize these would the as we growth You mid-single-digit of we XXXX? of XXXX that in outlook guys residential light just at How visibility some about expansion residential. you mentioned think this and growth plans? how shifts into kind Is market point around of should look in

Joseph Cutillo

XXXX. decide that's the convert or rates they we're trying look can We've to what way a Dallas. is this in land to do there. to think out how figure growth I they seen good at up What fast

decline the we've seen at Plateau. haven't seen We

as build, constant be slabs on It to dirt. year, could transition we this do. out more more last market as could go call seems it we through, the Dallas So to build I'll more to go how in they and the steady figure right as was it, many now same

Ronald Ballschmiede

and lower turns, mid-single-digit that the in not to of you incremental strong. poured I Houston They this that quarter, just are in be housing why bit slabs, priced we pretty give These think that's at got XX% increase kind sure. a the could point where we're still starts, per -- tell in both incremental to little a whether when that's time, from Dallas, slab you happen and But guidance.

Operator

next D.A. Brent Our question Thielman, from Davidson. is

Brent Thielman

million $XX XQ. that flesh incremental Can I to us? Ron, more million months, for think amortization the $XX you and and in any said be out to the XQ somewhat transaction so related front-loaded that presumably, X would over you that, next

Ronald Ballschmiede

Not a whole lot.

it's amounts our smaller the think million you of will us is. that. you give are that longer step-up, period I exact time. one that's to for what faster. it for crack if is that's in $XX off accretion the some the million numbers a some will, of reasons too quarter But $XX the And to that fourth early on is -- There annual of

have The should and And heavy while does, in standpoint other it of some. X Plateau business a the X have quarter it the know, by of highway, mentioned don't Qs, the is I that does civil kind and earlier, severity X. factor heavy there, is the then seasonal QX doesn't probably math by they burn-heavy from followed slowest same have

probably also So I similar think not as severe. but quite that's

Joseph Cutillo

three burn. high Two Yes. the and was

Ronald Ballschmiede

Yes.

Brent Thielman

civil, in the there jobs maybe able chance start And in be any you'll civil on in Okay. too is to construction it is XQ, these then or large season? late

Joseph Cutillo

They're ramp fourth the in quarter. the Even then and state, of the already nothing right? late some said And and nothing it's a plan half basically hopefully, lot we let's we year. So real first snow have quarter anything. us season, will next to likely. they in first in Mountain highly or close, the going not up in help Brent, of needle virtually on the say do, revenue on I'd Yes. Rocky are or if areas move we're so

Brent Thielman

Okay. near-term mean able what And on here XQ, you the see backlog business? sort that in there? like do what be bookings grow have may slower a do given prospects based the look to year-end out of burn into I you'll you fact think in you the

Joseph Cutillo

The timing higher because very of it's X%. overall, and hard added still increased They've right? always the the bids next It's of just bid Yes. for actually you, I'll timing year, and strong. the win, activity is tell than country. projects you spend what across X% feds

markets. that the see our trickle-down in we'll So effect of

about seen and We'll the amount not have concerns saw of quarter. side, pick to are have pickup in no We out that those in right great really wins amount projects out the We and activity or heavy there ones. that's of the selective, the be continue civil there. the in margins wins the

Our keep a up. be can quarter, XX to goal is tweaking tickled points basis XX, right if that up death. we now to And pick we'd

Operator

question from next Dilts, Noelle Stifel. Our is

Noelle Dilts

that on I'd challenges terms finding of comment thinking of you hoping you're that. in was about labor you're residential a bit you're particularly availability. side, the retaining in I and be how I hear seeing to could what curious on guess, terms seeing any that labor?

Joseph Cutillo

Yes. to property want premier solid We're the, work. go where it, people kind call Dallas. the of We're pretty in I'll

So we the have the a on better there. Houston expansion. as been nemesis up It opportunity in to rate pull in of our needed labor has market

we is mass consistently, can labor to is we're Now picking to the enough some up we're in getting Houston better good crews what market. and keep talent that starting and and busy better happening see finally critical

and large with to give flows a builders we busy call then we'll XXXX and to Dallas. that crews development close us build crews, keep base ebbs it, enough And the set loyalty the mass real and the, that I'll We're a, the that Houston, of call easier of critical a of it's it, built augment here going in in with all will couple into one a to I'll landing major time.

So we're to very close that.

couple, got with. Houston market guys certainly they're dozen they've think market a But feeling than in our for Houston labor much a I that of stable is a crews. Dallas. consistent are the the tighter couple stable better crews I than us that say in a little When less

Noelle Dilts

bill highway out? how any have that's helpful. That's -- going when Okay. potential play clarity around on this we And to the and might then thoughts some

Joseph Cutillo

Yes.

They're the votes. the month, set activities. of still heard. the in back and was trying front them passed still slowed next issues seems front those have We down like of it that really in still everything's But slowed a were that, of -- that hoping but So there of first to in end round the by out in the been Senate. some something I would get of the front down it It the last of The October November active. for it have like it Senate. seems impeachment about

gone more hasn't the it hear then a starting need for and away. campaign trail spend. So And bit the little to we're the more on infrastructure

Noelle Dilts

I'd Plateau, like a Great. on last And explore of more. to then question, just couple a little areas bit

of So you kind first, any kind geographically? of streams, revenue visibility And Plateau's of of us these into projects? Plateau that remind second, see on to us you could opportunities brought could speak expand that some remind -- have of you're just you to you process might what the with the how early

Joseph Cutillo

Sure.

So as They've Home that's out years centers that this whether you think has or imagine, Home put customer, Facebook advance. Depot. to several a these X-year stuff Depot got on is they've distribution out or plan there. and in plan a got Google can

a as get and coming into the these from what have, budgetary book, then light call, they of I'd So key it's what's sessions. multi-years they customers

portion let's line of Our think time step and center. just the the -- back to distribution build

X to closer start So you is project and it months time buy to quick, relatively the when length we're it between out is months XX probably to XX when our The X portion there. all you property, together. months of put completely of finish the

advance in and they the of as expansion So they've the planning growth. plan where want part session, to multi-years got out

getting and seeing guys are are of visibility Our that that.

it there execution. at it and strong to XX that to they And they've time. of I'll got And point goes to then in window, very what's coming call X-year that, that from get process involved the generally then visibility are as in

what's where or come we and fairly out in rather, they at the to core got we've customers -- that an with variability XXXX. Amazon, Google, they of good like a change look from be bigger executed is someone as have visibility The So going that overall they where design XXXX, to model the but their because helps to projects hit cycle, off the phase the takes that. so constantly will us refining completion of change degree. longer some they're which trying warehouses, they're design the their throw Generally, in still

from, time. good visibility it call at you it two and gets in get that very So years, it, point on I'll grayer as out,

Noelle Dilts

Great. any expansion? Okay. geographic comments potential And on

Joseph Cutillo

Yes.

we So think that there's a couple opportunities. of different

fair we've time what we in, we're to with, that I'll I'll there after lot are they mid-XX% strategy not highly spent that Plateau, that margin-type high of capacity are in We those within own it simple. footprint, if And it, is accretive existing very will them. that expand and their their low past, with For number think gone do a their call the after projects been of going have historically enough, that a has talking to market? and call, go have customers evaluate opportunities have other does growth have we about key margins us, those to the are In cost that to that we what we stay today. the

of customers, on leverage there condos, to office footprint market how up one opportunity center parking fits with pipes In U.S. expand done fits We're center which Dallas kind into like soil is their the well market. data centers. past. a in work soil relationships our job the fastest-growing footprint figuring as small Dallas East and data the into the did in of business that side them and our it. Tealstone They And one the Texas out But structures, an does commercial slabs data in and footprint, in Dallas that markets foundation to Texas. Plateau They has done what for in to addition, buildings. current conditions They've in, that has very it, is Texas. well the are they've

Operator

Instructions]. [Operator

Walthausen. next from Our Heffernan, Gerry is question

Gerard Heffernan

know about and into performance here we've talked strong expansion little somewhat Houston And the I a business congratulations on a resi here. bit. the

guess, paw purposes foresee here, the clarity margin Dallas with for market the you Houston ramp is on be to my, I personal Just of own the my for that working what market?

Joseph Cutillo

all two Houston has Everything past, as in happening Well, the in Houston's things that Houston we're -- could The market been are growth The seeing talked ramping very I've predicting are market. happen market and three. the and to is Dallas Dallas, U.S. rates is overtake said it in in everybody Houston we to, the going builders the XXXX. been the are up #X number nicely.

great a a from call, have standpoint. what demand grow from to a, we So market I'll opportunity

pads little or always that. be day, the but are it's get dozen bit We Houston. them than the We the up to of get we half call, market until Houston. end think movement question the working anything productivity like the the in not crews of points couple to I'll less But relationships. I Houston-built subcontractor But consistent in a the throughput going get, over different of we've a margins may the what seen active we a Dallas full-time is the ones. Houston before and out may on and nice par, at some the in be in

we'll not a it's there. amount, think small I get So amount, Gerry, a significant that

Gerard Heffernan

Okay.

So maybe difference like, don't know the point basis a I what, XXX in markets?

Joseph Cutillo

Yes.

You yes, fair. something that. could -- see like probably that's I think it's And

Gerard Heffernan

mentioned Okay. what that? Ron dollar under us recovery amount Is could anything was approximately the And tell you of about in, that quarter, you -- arbitration? is there fourth $XX can that there us the million reminder? was a more Good. that's give just currently out In brought regards that to in

Ronald Ballschmiede

Yes.

for the around, project. I still basically, think working design, that dispute money that's and the vast on we owe majority them argument -- of we it, was we the and resolved that we're so believe on design

-- resolved we we coming in. the and right thought would It that. money's at we hopefully, And can So we do, was what

Joseph Cutillo

not of major since This we're back makes executing of on redone said to the or in we we the in any have a there claims or new XXXX. still in that started because wood, hate And any always projects bid relative was But times, is Gerry. place, anything have bid I process operating controls say It multiple the have out project is And and we the against as at last this you we actually par knock bid nice, put them those. above It's it on processes. that magnitudes nervous. before and had put terms. slightly in

flaws a it, them, We've customer come So the with we on with And which resolution in, this and finally had us. about the in legacy for X.X that project frankly. this on and to the that major fourth should DOT one came in for and see working years design a quarter and was was for been end behind us that great outcome get it. cash

So...

Gerard Heffernan

certainly that's a event nice announce acquisition. right a you Well, large after

hurt. cash in extra coming Some doesn't

Joseph Cutillo

That's we said. what exactly

Gerard Heffernan

lastly, forward. commentary on Joe, I that that that management interesting. throughout regards elsewhere Sterling. there seen you in expand Plateau? show you team for very in could could the time management could statement be there, run to And made is to the The team found of commentary And you threw perhaps of please looking quite a management that a also be

Joseph Cutillo

degrees got the of we number X are a business Brad, large run young, really business of They underneath Plateau, degreed young to and are relatively Greg also him, them Yes. predominantly, -- the have and But they've to the just off Greg got of Brad. lot of Brad's really has got guys of people, Greg -- is an got underneath Chief and really, them, going Brad's a Brad's talented have to people owner starting beyond is been the lot as is and ahead hats some with engineers, -- Operating engineering. forward. Brad. go that advanced They've Officer. their got guy, outstanding the a -- runway right?

just a technical So job they're rounded rounded from them. done from it's standpoint, standpoint, and fantastic business a with a

and talent So of this some with things what other the is of looked themselves as looked and Plateau population to biggest grow meetings through of that the the it's happy the help talent forward the we the level company. Plateau, guys we us at pool to that every in can opportunities with the that. with and move there kind of we rest continue acquisition go There's talent road. limit the they of another And as is key of another grow the don't good talked But of population future they're business one, down and opportunities? really of the as we one rest grow If at enterprise, already we've and we the in is we're people initial Sterling.

Operator

I This closing will over turn the now back question-and-answer to Joe remarks. and for concludes session, Cutillo the floor

Joseph Cutillo

today. Thanks again, for our joining everyone, call

day, release associated The our questions to provided Investor talk a Relations at the or partners today. If have Equity we'll our a the us please refer follow-up soon. appreciate you Group. great to wish or contact with have press call, and any at everybody Sterling group Everybody, information in schedule I joining Thanks.

Operator

today's concludes This conference.

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

Joseph Cutillo	CEO, President & Director
Ronald Ballschmiede	EVP, CFO, CAO & Treasurer
Sean Eastman	KeyBanc Capital Markets
Brent Thielman	D.A. Davidson & Co.
Noelle Dilts	Stifel, Nicolaus & Company
Gerard Heffernan	Walthausen & Co.

Sterling Infrastructure (STRL) 5 Nov 192019 Q3 Earnings call transcript