Q3 2019 Earnings Call

In the low to mid single digit range in contract the impacts of closures and divestitures will reduce our full year growth by approximately 300 basis points.

And we expect sales for the year to be up approximately 1%, which implies fourth quarter growth in the low to mid single digits Jeff.

Thanks marginal our teams continue to manage.

What eightnine member owners for there.

And for those comments complete I'll open it up for questions.

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Okay.

And your first question comes from a line of Matt Mccall from Seaport Global Your line is okay.

Thanks, Good morning, everybody.

Morning, Matt So when I apologize first I was not able to get into the call until after Jeff's boat. So [laughter] into it didnt or didn't hear much show a there might be some some things that the you have to repeat but I guess the first when you talked about kind of the cyclical sorry.

This or the macro uncertainty out there.

Hi.

Inspired what what showing up to give you that indication and and then.

Well I'll stop there and then and I've got a follow up on that one.

Okay.

You contract I take it Matt I am yeah.

Yeah, Yeah, yeah, okay.

Yeah. It about mid August we started to see what we classify as kind of small to midsize projects delay at a rate. There was you know two to three times our normal range. We always have some delay but that was that was at a higher rate the normal.

If you think about it you know so we've got a lot of exposure to that that's historically been one of our our main areas and those projects are more susceptible to you know uncertainty driven delays there not quite there not so large where their cost prohibitive, but there.

There you know large enough that of businesses get one to take a wait and see approach. When there is some uncertainty they'll do so.

You know the day to day businesses held in reasonably well as customers continue to pursue their daily operating needs are and the larger projects have also continued at relatively normal levels. You know you think about the large projects the longer term cycle of investment required for those makes it more difficult and costly to delay.

So what I would say mounted that started about mid August as the quarter. Its progress we have seen some recovery in the small to midsize projects, though it hasn't returned to a level that was you know ended the second quarter beginning in the third quarter.

And would that was there anything when you think about those projects any consistency across customers was it.

I mean, obviously, you're you're making a broader statements. So there must have been I'm a bit of consistency, but can you talk about maybe end markets project types was there anything that was it was funky about it or was it.

Was it a a pretty consistent.

Trend was it was it was pretty it was pretty consistent Matt I think we didnt. It wasn't a particular region. It was you know we've we've done a lot of.

Like I said, we've talked to a lot of our Salesforce is heavily engaged I guess our win rate still as is strong and improving it was really kind of a a across the board felt like a bit of a pause at that level of project, where you'd I just got to sense businesses. We're we're kind of saying look we're going to roll the big stuff because we're committed.

And the day to day business, we got to rule on because it's not quite as as heavy of a profile investment, but you know this next tranche of some of this mid tier stuff.

Let's let's slow down a bit let's take a wait and see approach and it was it was kind of broad based and.

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Uh-huh I see.

Yeah Yeah.

Very much.