STRL - Earnings call transcript Q1 2020 | Sterling Infrastructure, Inc.

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Operator

Greetings, and welcome to the Sterling Construction Company First Quarter 2020 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded, and there are accompanying slides on the Investor Relations section of the company's website.

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

which income earnings per GAAP. share also management reference may under adjusted Please measures EBITDA, adjusted recognized this and call, are note that EBITDA, financial not adjusted net on U.S.

regulations, and to rules non-GAAP financial GAAP SEC measure reconciled by required earnings these measures are yesterday their financial As afternoon. comparable most release in our issued

I'd proceed, the sir. Now call Please Joe Cutillo. turn to over like to

Joe Cutillo

you safe difficult times. for most Thanks, Sterling's I XXXX these First joining Jesse. and out and of Quarter of Call. us families your making morning, Good today thank the are you joining Earnings all and hope

we Though and have their work, I'd have safe, missed keeping we forward. to each off to their like can to beat not homes, ensure we do start obligations safe. have will hard investors. of thanking our for sequester commitment to to and employees friends many X,XXX our have Sterling dedication as the they by other fulfilling family our everything our customers continue employees our to productive The entire workplace a a and team go employees

throughout continue planning focus our preservation, work serve corporate complying changed. fortunate essential and our our were businesses to customers. our At liquidity keeping in to and period. focus new business our on field very our level, all guidelines we designation that the was safe, employees case cash felt with employees quarter, and on During first scenario deemed our essential, the At continuing was all level, the the

expectations, and XX%. were prior before with quarter, For that financially the but met our the all-time an revenues EBITDA up all year, not put us. both strategically, Versus even had record our internal challenges we only quarter, were

profit XXX XXX%. gross million was our XXX in was up over our was Our margin our our XX%, or up backlog margin $XXX gross gross Versus XXXX, and percentage points. points, basis income basis improved backlog year-end up and XX%, operating grew

acquisition, newest where record $XXX cash of booked important burned backlog. we and than Even historically are million an business new as to expectations at in over our they now operating have Plateau, in high our improved that, million $XX all Our quarter a exceeded all-time $XX million more liquidity flow. of

top our while line another bottom more a quarter turbulent to line for three principle overall than execute creating faster we than the of the us reducing strategy rate as are our the time. just flow doubled our overall continuing The risk. example line very last the positive bottom years, line driving that increase is of our As cash while the discussed strategy first of growth in top results

To the perspective, put short EBITDA a than it $XX-plus of in our a year our EBITDA million remarkable improvement full pretty more period our quarter XXXX, of in seasonal for entire all was of time. into slowest

year, the meetings are meeting there things of Instead virtual. but to usual. Zoom. now that our anything look do are and are of to person, of offices as conducted and forward will we Many remainder in customers traveling we our via As the have business are

hard very to changed. our our sectors PPE. believe we Our perform all these and But now will hats standard job safety with Masks thermometers have civil and even sites procedures as expectations. are protocols near of continue original glasses and specialty and on heavy alongside service changes,

new We hits rules and will, impact a see productivity however, coming small impact – with from regulations. small associated

pull first our at quarter. in performance unknown the starts land we seeing quarter, commercial in all areas and revolves second new had time, and starts land and residential, builders development this and around those – risk strong Though in new on year multifamily office the back we full biggest are Our markets.

and the seeing in stages. unclear bid slowdowns know is they guidance at and until canceled. duration we're In are full on we have to will an the XXXX future what impact we year picture or it But impact activity we likely is that multifamily total this project of space and results. addition, of chosen pull magnitude It clearer this, these we our still be. starts time a our get the since commercial Because delayed of beginning do will have highly year full have at office

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

Ron Ballschmiede

good a provide Thanks, XXXX morning. our of quarter to Joe, and summary I first am results. pleased

being transformational of our this behind of costs inclusive of another the noise acquisition made, our most quarter Plateau cash cleaner us. financial and of the have for a also results now including reported the Plateau, our onetime The are our performance. progress of flows. transaction-related passing financial strategy, picture quarter progressing acquisition, acquisition post-acquisition second multiyear the in performance and we of With primarily first is The allows apparent quarter

provide complications aspects far the and uncertainties into next the our deck prepared pandemic. on the the the There and enters with Today's expectations insight thus the pandemic. to now remarks posted quarters. global of time investor Q&A for relating Unfortunately, continuing business our website, few are together many should

costs our investor help of to earnings understanding included quarter expectations. XXXX $XXX,XXX. a provide in several our prospective of results financial press release includes release, deck As acquisition-related presentations QX the the better earnings first The non-GAAP and saw and you

requirement reversal this we accounting The allowance. – as cash a expect we to loss pretax expense. effective NOL provide future our earnings XX% discussed call, income tax approximately income in an and will consequences Additionally, our of the which non provide XX% expense. XXXX XXXX, rate of cash Accordingly, accounting be income tax at XX%, to tax expense income requirement a non year-end of tax of to requires Sterling during of U.S. the required standards

nature going flow forward, additional for eliminated the presentations. non-GAAP expense our to tax our not of have expense quarter, totaled cash information. from we For the XXXX non expense XXXX first this cash investor Because materials refer this deck this $XXX,XXX. Please of recurring

let at me first specialty the high over billion, a the by end million XX% our $X.XX decrease XX, At included the of a is Approximately XX% the civil balance backlog our XXXX, increase growth increase all-time from related low quarter the operations, heavy Unsigned combined over record with $XX in March $XXX of services. of backlog a of talk XXXX. beginning was first backlog backlog the XXXX. of in from about awards the the The X% the of segment, totaled of quarter We end from of which million, Now finished quarter was increase a XX% end year. Plateau $X.XXX of also specifically an with billion, margin a growth driven and to up our gross XX.X% the the XXXX. XX.X%, of high first bid results.

Our combined from backlog at beginning XXXX, XX% gross the the profit in increased quarter. March at to of XX.X% XX,

cycle Our of factors which and specialty revenues, of XXX% XX% report segments and backlog, short-term reflecting slabs. performance for book-to-burn Residential, combined civil the for backlog accounted combined heavy our and our our residential and consolidated XXXX respectively. does services not for backlog, was XXX%

the over million, slightly specialty with of due or to $XXX.X quarter. the first inclusion million quarter. civil Revenues the an Consistent for $XX.X $X.X heavy million were first attributable our $XXX XXXX Plateau segment XX% million, quarter increase of over to service acquisition. quarter XXXX revenue increase The up the the was the expectations, was or revenue the

projects year of revenue heavy quarter-over-quarter for civil accelerated three the the in region. our of each balance joint Mountain growth expect venture as design-build the Rocky ramp up We we large

driven was QX the impact. up revenues the December rainfall higher Residential first revenue the quarter slab XX, revenue generate from quarter million for March million, its record of for in for XXXX. negative $XX.X a of first $XX.X XXXX XXXX This declined was quarter count first homes, from the quarter. demands down decline slab, the small XXXX, also per extent, by pushed XXXX, $XX.X of second mid-XXXX shift first quarter quarter XX% the while a in saw from into Completed primarily the had to less XXXX. which To we lesser which in revenue from million

for continues XXXX first and slabs quarter compared area in up favorable ramp operating of of first accounted has the in The expansion its prior on returns. the up the X% increasing market a quarter of to residential's had income to the pick completed Houston steam. Houston Houston Our scale XX% year. impact

Consolidated first margin gross drove the Consolidated consolidated an inclusion quarter. points for prior gross QX, margin XXXX. of XXX $XX.X was million $XX.X profit million basis in the XX.X% of Plateau improvement. an was over of increase increase The over the year quarter,

as asset Intangible acquisition Plateau stock-based comparable million Plateau as to first insurance-related million in first the result in result and for General amortization the million, the from XXXX million costs. corporate the expenses increased compensation $XX.X of a a increase increased the administrative income quarter for was an and $X.X XXXX $X.X quarter and increases $X.X acquisition. Operating quarter. of

$X.X the items million income net XXXX diluted effect expense expense position, first The $X.X the or of per first $X.XX. due cash predominantly to discussed compared of tax earnings EPS non by Income these or I net to increased million of earlier. million all of $X tax of income net which an the quarter year-over-year, resulted of share $X.XX in quarter

of of $X.X $XXX,XXX, or resulted the or million adjusted excluding share XXXX, $X.XX. earnings in income in acquisition-related an of income Net charge, net after per adjusted costs tax

Our EBITDA more million. first $XX.X of double quarter QX that of XXXX EBITDA $X million, than totaled

excluding EBITDA costs, EBITDA quarter revenues. for a resulted million to or revenues of As X% EBITDA, $XX.X for the improved in quarter. X% from acquisition-related percent of X.X% the of adjusted first the of year prior revenues,

and let's balance Now liquidity our move sheet. to

first Our cash quarter $XX.X quarter. by it for not and for both cash earnings. flow has the This first to seasonally improved. million its increased has Historically, $XX.X balance is changed, slowest period but Sterling's

cash have the negative $XX we result, a million the typically had $XX in operating quarter. first million of As activities to from flow

in Our the in cash off the levels generate second quarters. fourth flow cash and typically quarter, and third then we

in light the the $XX.X pandemic environment, credit XXXX, $XX.X activities comparable All to three $XX facility usage sheet. we financing XXXX our $XX.X of operating generation first cash contributed a balance future million quarter park Cash quarter revolving In compared around quarter. first our in was flow the segments uncertain flow to in the our late on it the improvement. million from million. felt cash included of million cash $XX to and this from borrow positive on activities of of borrowings Cash of prudent net million

We revolving $XX In credit loan million $X facility. quarter our term on $XX March. addition, at million we with of first end of the capacity ended million available made borrowing our the scheduled payment of

$X.X Our totaled comparable to net of quarter. proceeds, first million $X.X million quarter disposal expenditures, XXXX XXXX the compared in capital

million to the current $XX million. Our have original XXXX the our for of cash Considering uncertainties CapEx been balance in the CapEx $XX year, alternative of forecast. lower on anticipated plan business net leaders we outflow with range the pandemic-related an working

short low-cost CapEx rental and alternatives vendor of opportunities. used lease pursuing reduced rentals, facilities include in deferring to programs, nonessential rent such own, purchases, term our the as increased operating Our variety OEM or equipment of and programs trade utilization

to CapEx We monitor year will our the progresses. continue as

on slide Our million is insist uncertainties key $XX to million CapEx with consideration flow. investor to our stakeholders XXXX the for QX modeling COVID-XX how to the out of deck XXXX a have components our play cash range alternate added note cash flow that dependent understanding balance of year. Please we $XX the and the is

end shelf registration of S-X XXXX comes statement Lastly, the its life Form month. later to our this existing

to to document. Securities this S-X shelf. continue a issue is that and new existing registration a Form file have shelf Exchange security the best having this an under plans the we Currently, on with replace We Consequently, Commission effective morning, we not statement do filed statement practice. registration shelf believe to

Now Joe. over call turn the back I'll to

Joe Cutillo

Ron. Thanks,

XX XX short As changing world days in much have period of quarter, years. I any economy believe time. such like imagined reflect back on don't I last as the of a whole as the us more could the did felt it

the our exemplifies the the to of through quarter overall rest of strength of we how and of this strategy. first results value the business continued the year the positioned are and However, get

continue foreign how will today out become will teams what Our to to adapt. the figure new And norm seems tomorrow.

quarter and quarter As we we margins. the entered record record and backlogs second to the second year, look full the with forward

gets position have throughout the We of solid only liquidity the that a year. remainder better

that any in has shown navigate and team and to and adjust to feel to challenges rapidly face a slowdowns multifamily confident changing commercial that have be quickly we great able the environments, markets. We will residential, ability office associated we we with successfully

of picture year have performance. delivers strong full a a Even giving from still until clearer though we we we'll year have full COVID financial back believe the are we guidance stepping a that impact,

turn to like I'd to any questions. that, it over with And

Operator

you. Thank

[Operator first be line proceed of Please question question-and-answer We comes with with Davidson. question. Instructions] D.A. session. the conducting Brent the will now from Our Thielman your

Brent Thielman

Great. Ron. Thanks. Good Joe and morning,

Joe Cutillo

Hey, Brent.

Ron Ballschmiede

Good morning.

Brent Thielman

you residential where for just framework on so start, the on we quarters? homebuilders in context that think segment from something or declines guys to Maybe give any of could hearing the can about coming of have you're the we us in terms to and next couple see what about

Joe Cutillo

Yes. We'll give we're bit the mixed. little feedback It's a getting. you

I a nearly think thought. everybody as people larger, off as that has happened to anticipated fall faster much has date

starts. as they're call of back what it, predicting the I'll to and to drop between at XX% in However, for, forward builders somewhere a we look looking starts, June are half May XX%

won't week. it, We're hoping of up back. week's, right quickly things. back Now that, picks now, comes up and until have we that traffic we're Texas week. just foot this the reports that I end haven't call got two I'll seeing the opened But last

delayed. on back first May. of development new time, pulling starts some for plans site the towards You're seeing, the we're those the also end And of

that not new ground on So breaking they're development.

to at Brent, what So XX this. But us into to the XX the back I normal, we're certainly drop. it. the will think the will the return driver that period XX-day that's biggest return have next get will we back the it to or of more pulling third is as builders the know in we it is of a close And of it we'll over telling like drop us keep stages guidance looks We'll very XXX% are And that days. then rate kind like but early looks it be of some year. really think don't half

Brent Thielman

civil of mean then good there. Okay. on level the backlog. And heavy I visibility

visibility the rest that segment. backlog talked of of the quarter-over-quarter think degree, about into for kind year give I what you growth this To through you does guess, I XXXX?

Joe Cutillo

does. it Yes,

good We year the into and enter it. XXXX loaded and And backlog visibility generally with, it, we into that call XX% have the locked as goes XXXX. that into continues before to of very some XX% year get we

good we very visibility the now. haven't numbers, We XXXX into but run have going XXXX right

Ron Ballschmiede

booking obviously, out. longer the it, about comforting this book-to-burn than more stays think has if you're the that a far you had When with level. typically that we've burning, year, XX% so And that now look factor you're you

So as it probably here, the will do we on but could be sitting our we the or of that math, ballpark next in sit for XX% XX months backlog. activity

Joe Cutillo

Brent, seen activities is the down. thing, think our bid not I that we markets slow in DOT other have from

seen bit, with a have work from biggest big part of just do. seen over the And a is a out that's municipality and fact, came slow in $X is county Utah little the budget one some we them. little a as what not of but while their which which we've down XXXX billion, We matter of

is the goes the of as least that will the continue is, extension into heavy some we're they'll at seem with states the that well continue Act currently to forward, it on in, be overall. those go positioned to programs reality good FAST But to does concerned then their And if that highway an to pretty XXXX. click coming states the come to we end, as it in put an feel sort end. we about So even along. Everybody in

Ron Ballschmiede

plus. at our two backlog, the probably is Brent, extended. are to four backlog Yes. Certainly, projects And that one in last thought six our one-third of backlog duration is of years

gives that XXXX. us a XXXX, predictable So comforting

do time up it. we plenty fill we have and what know So to have of to

obviously, is most it's is been, it's profitable been. the So backlog largest it's –

as it and execute we it get to got done. here just job our do we Now

Brent Thielman

flow the should front. levels levers given for Okay. meeting Joe I queue. but in into get Maybe year, one in really comfort on I'll free you more gauge I the and your half good, for the financial back back cloudier of can me, guess cash the and pull covenants I of understand the and want to guess, seemingly year terms the outlook, Ron, be kind that pretty of your

Joe Cutillo

the have details, done as stuff about in to I'll call acquisition or we cash will last important better and historically it, night ever I'll answer covenants the actually with call I four but what we generated solidness that's one stability it, day But is done. is understand and the and and think Ron the what than the over can the business we first flow compared from, Ron talk let really to all Yes. probably are of of people for we've the a three over And I that well. the the business. Plateau today thing position in the years, is, that quarter of been

Ron Ballschmiede

Sure.

with, just short-term XX% the when So let's quarter. down talk to magnitude potential of say, residential, our about a so start builder-driven people view XX% understand of we let's for, all

earnings rata So are our pretty the throughout in the residential year. pro side

Our are business. in $XX EBITDA that minus plus expectations or million

million a easy bit, we as others variable all many are math result, to are now costs a people a margin overall. when doing quarter XX variable and slabs. building fixed And a talked do business. round down you're their $X only the costs So little And as it's paid times,

So million D&A, I have, in because don't we $X.X not you probably will do with continue. of math, almost. $X That know, a almost but maybe the quite million, – – per can maybe quarter,

million XX-day, an easy $X million that $X So million, of it's sort in maybe math. to $X is

big mover. quarter on a quarter margin we've operating that, Obviously, the got first first by the side. So not with is strong itself, a us underneath

quarter this and that decline will sometime hopefully half until the comes in won't so that And happen decline back. of back – big –

it's at of bit, stay a very on magnitude, So assumed little anyway, just if today, only dark the we that's what we're least a thing it it just $XX on. to million of pace, can hearing would you and that order rely view

to essentially a covenants to our precaution you we a borrowed sheet particularly your now of same, in uncertainty. our just So balance on sitting the when question, consider get in on bank the essentially of as revolver our million is these – that our cushion are $XX – days

could $XX good desire, back we million today we think we pay that's if So a don't that so idea.

we're had, the that which that, of million flat at EBITDA with with time essentially $XX cushion. first driven give take, or quarter, So

quarter, million on to back hold we'll $XX.X we And second down the the shape good the Tealstone. and in seller of final pay warranty notes pay be in down payments over

been of have in then payment those at the the end So on off $X paid the million and first second loan week April the a of term quarter.

that So so number keep as about to that is acts about else another $XX long cushion same million as essentially the talked we've everything buffer today.

already XX%. Frankly, revolver rates operating difference. lease to way work a generally lease I that I business in talked without the and additional XX% of top finally, then calculations is And $X any say. to can lease If think of borrow get is – an range we've we short-term a we don't less and can from $X rates, can noticeable will, as to went even the having brought of the We we million respond end could for. income same get down about, we XX% the our the CapEx or harming like million operating as on rates EBITDA, – And XX%. should reduction we borrow we things

do to we that tend anyway. So periodically

a – step harder. on on I'll million call of foot $XX the backlog If our cushion it's changes do wind of to world we sort hard up civil/what – another heavy the really additional the work, the that you if that need when it having just break. that's for we'll the on you it's our balance put So year math,

Joe Cutillo

Yes.

going customers to weeks to drop back has all was shorter that we're did a those deemed But than plateaus in lot today highway better best back, a is we is as telling economy, think, it dip back predict, probably say the we is work people in were, sector, feel realistic heavy the the and know to what is rate, we get probably hopefully, If I areas, part, uncertainty XX residential. Texas specialty in we call continue lower what working than tick for to right all ago Do we think Brent, XX% as everybody. economy at up essential our when for gets there. see that the XX% backlog three a most and I it, now, reasonable look, we're what days been

Brent Thielman

Thank you color. guys. Okay. Appreciate it. Excellent

Joe Cutillo

Sure.

Operator

you. Thank

KeyBanc. next question. question Please Our your comes with from with Eastman Sean proceed

Sean Eastman

questions. taking team. Hi, Thanks for my

Ron Ballschmiede

Sean. Hi,

Joe Cutillo

Good morning, Sean.

Sean Eastman

Compliments on adaptability and first quarter. flow the in the cash

Ron Ballschmiede

Thank you.

Sean Eastman

the whether I if me good just of in forward at do move point jobs I have see on piece, beyond just you wondering a waiting to question a up. year, is kind residential couple idea guess, for how wonder the first XXXX or is not. shaping what bigger you're there's

kind any what we guess, have waiting are color, construction summer that when the as Just guys you you exactly season, of into visibility head I and for.

Joe Cutillo

Yes.

not don't the I have on the now think gap very the Plateau quarter this the or the business. full have the winning quarter swing Plateau's biggest, – may to construction say up lines. in And right those certainly side fourth could heavy fill it start fourth time. thing that's we in side, That be of residential not third project to happen. at lot But civil a we time we've got quarter. in uncommon and on That that our between XXX% think, for the the point along something is filled now. we're a backlog a would to That's of

that that the we think biggest picture Right faster. piece. through residential before a our that in the July quarter, as moving as we'll to around drop all as frame, people season relatively through if stuff it get all hoping the season residential go a we're have that this I'm busy and as going and time we think much as homes completed back changes, wrong we'll if there. And the comes normally what's we're a now, we better starts certainly see as really school are second making linger that in positive sense it's into builders doesn't So have those. is we get way But try getting we to risk

Sean Eastman

a And right? That near-term It's have though this as Okay. the profile flex drop, just margin does much in residential of looked if will be what a cost lot lot refresh, kind different of not makes on the as you of even business, remaining from guys it would sense. see pronounced that that revenue have like. a

Joe Cutillo

correct. of I labor Yes, all That's that there's percent in the XX-plus field, all, but few a the say of business, is labors that variable. have, we labor that

There's as So slabs, we're in those and to costs can more labor. not between effectively there, we're people XX keep not as the if business. we for we'll paying And manage going. roughly XX in even

we not a on see margins. should impact significant the So

we're mass a that you all absorbs really enough that kind point quarter, there's out done saw labor of Houston can pleased of stuff. started the market, where job in about significant that the the – margin start-up, a saw finally the mass. in is we're critical get your or your margins improvement we to building there. that cheaper, with really, from as concrete Houston has get talked itself, and team to point, great we in really What get in that with The where to happy improvement they critical coming enough you We've

Sean Eastman

kind And pipeline beyond exposure just where you Excellent. those how that, award of much guys multifamily out activity here or commercial reported? just XXXX. And how another and Just there. maybe Can specialty remind this else of trending you sensitive then total offices refresher, us be the did potentially just call been in of through bid lockdown being has for Plateau might as period? elements sort

Joe Cutillo

I'll piece, Do and to much of hit is you much – first then how the office want is Plateau how it the and the hit multifamily?

Ron Ballschmiede

Sure.

work So multifamily, – to commercial specialty of is start Services let million smaller me about business with The together sorry, about is over. the per $XX million is – revenue year. some our of $XX commercial – smaller

our around specialty specialty those generally And duration. of a more small are a So fast, revenues. average, and on our little projects I'd year it's go part – relatively right some a say, backlog

that last of quarter, will a $XX So here million bit little drag that on or seeing back than started slowdown that a I'll maybe quarter, we've of month profit the But year, I kind a million, of but balance extraordinarily I've the in so here. got bit that – half sorry, more large. – I'm for myself the you little million $XX year the a correct of right the gross as go. isn't $XX put this

Joe Cutillo

areas. but of to do where have half towards see get And as quarter is we back It's to start some a we we Sean. is the it's So million $XXX to about small and the talking whole backlog, year. piece fourth business whole third less we're the million a that shortfall commercial than sector, – this the in the That quarter those relative year. closer $XX and in of

a and okay? all it's those time the are with done, guys hoping sell in enough. matter to first speculative just And also talked, were million. see than build we've their last in, to we slowdown they we quick $XXX a Amazon, what anticipated, that one-off building the thought we of the more over get it relates What time are is lot With can't we that. call, ever warehousing, that seeing by we the the going bought is all booked Plateau, process warehouses we – warehouses opposite. quarter Amazon fact, activity the a As in through We've enough Plateau it e-commerce as and and seen

of to it, and or on and shut time some a the warehouses built. is lot the taking in of running be the southeast, process back. more built being down counties The going that's little off into the buying board these, call have speculative been drawing out all books, a to through of one or books scaled and they're I'll that of pre-buying And these issue they're the were on

So took, right, think the taking to days, get I to permits through forget what get I normally days through. is permit a exact now XX XX time, they had

looks very activity all of the activities good. and go only we back a e-commerce of believe there's around that issue end this, an the little as accelerate are the We the that space But So to think on bit we going forward. there.

raise in we strong at to point time. nothing resumes. of the And any this when will year alarms be So back think stuff half the

Ron Ballschmiede

Yes.

tied I – for a there tongue me second. Let got

recover Let me here. help

of Plateau be About side. the per our we business, of is Tealstone year. commercial outside about million half the that's acquired the base would business, in business $XXX commercial that that So basically

$XX has million million, So $XX $XX the it slowdown. a kind work year. that's to that seeing a we're the that gets million, of duration call bit where of of That's it, And rate. one back run

of a quarter it year. of million got the the headwinds balance backlog that that's we we call cover most of forward the the that. So as revenue, will to move which – $XX be per But

Sorry, crisp – wasn't minutes few a ago. I didn't more have

Sean Eastman

guys. Got it. me Last for one

did the You had heavy out most a sort just the perspective from productivity of quarter call environment. dislocation in civil from – the business first the civil COVID-XX

normal curious can got think at normal? Have this Just about to How just margin civil? point how guys into so we heavy to trajectory of kind there. you And close we're are quarter second trending the back for we there.

Joe Cutillo

Yes.

just have we'd our change, don't amazing this all virtual really able our changes, you, when do to to talk and at world six of But you work if our we how coming to, and we the adapt. business right? is, tell calls, have customers if and thinks it, likes leaders they up months they we're our all this, said, Nobody we resilient really try litany and to they are they world would end. to thing of like – having ago to. what's through, our on of adapt you rockers. have presidents I adapt to when could first, have absolutely the to offices would called call whenever have we I'll off how were the then dramatic and is with to are you this, I thought imagine. a everybody Sean, as But trying keep And you think can go realize people

in things got crews meetings believe people and think people as simple this well." could would much. them now is we around the kind our it, safety going. have know, week stuff have presidents point incremental two work. together do of now as "You takes actually to have and it all of one I pretty to much you this At XX and And with we've one you But still say, costs do got six the not calls or had less, you moving we never of that can't And you're And you ago, or all like we're And where I some right? our to minutes. where a working time

which and would with So and remote, going adapt really long-term that a on that. And virtual say now to team work done some quickly they're the be how the impact to I also I'm folks there's for they've unusual able is of to highly great are But proud and customers job. us.

the I'll see margin. impact, little which that to other it's new small a call, think we're we're make And we're of bit on but scale always will XX, some and to up But It's get working piece to incremental we'll of norm running, a ways. a on be what an continue in of not – one to I So on better. of other X.X candidly, will X in margin. probably things points

Ron Ballschmiede

you you're a Having about change. When road contractor a all cars not the is highway roading think when very few bad. very productive it, on

so that As you burn moving our saving, one in work thing to we lot second diesel at lock we're And around. that's we – on and might variable one imagine, traffic of we're risk. the a the is that projects, don't

– There are because are when like So news, you projects. out up every to get but pretty it's on dismal sometimes not in them big forget about the there those kind – some only and you we balance – listen that ops. day some have it's it's that of things

Sean Eastman

it. really very much. responses. Got helpful Thanks All

Operator

our question-and-answer We the have reached session. end of

I'd for back additional like to pass floor So to the comments. management any over concluding

Joe Cutillo

again, Thanks, Jesse. our for call joining everyone, Thanks today.

our you a to appreciate wish with time. or contact press any partners or Hope taking we associated group all you call please Equity refer in Group. provided If questions at a our great Sterling at release and the have information us, Thank Investor day, the to schedule you you. have with the Relations follow-up the

Operator

your and does gentlemen, this participation, disconnect and you we this thank time. Ladies your you teleconference. Once today's for conclude again, may at lines

Sterling Infrastructure (STRL) 8 May 202020 Q1 Earnings call transcript