Q3 2020 Northwest Pipe Co Earnings Call
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Good morning, and welcome to the Northwest Pipe Company third quarter 2020 earnings call all participants will be in listen only mode.
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Good morning, and welcome to be influenced by companies third quarter 2020, <unk> earnings Conference call. My name is Scott Montross, and I'm, President and CEO of the company I'm joined today by hearing Wilkins, our Chief Financial Officer by now all of you should have access to our earnings press release, which was issued yesterday November four two.
Belgium 20 at approximately four PM Eastern time. This call is being webcast and is available for replay.
As we begin I would like to remind everyone that the statements made on this call regarding our expectations for the future are forward looking statements and actual results could differ materially. Please refer to our most recent form 10-K for the year ended December 31st 2019 and in our other SCC.
Filings for a discussion of such risk factors that could cause actual results to differ materially from our expectations. We undertake no obligation to update any forward looking statements. Thank you for joining our call today to discuss our results.
I'll begin with a review of our third quarter 2020 performance.
Recently, we've seen second happening delays related partly to the covert pandemic, which have caused our backlog to moderate downward.
However, these you're not project cancellations, but simply delays.
As of September Thirtyth, our backlog, including confirmed orders for the northwest pipe legacy business was 231 million compared to 246 million at the end of the second quarter of 2020, and 270 million at the end of the third quarter of 2019.
As we've continued to say any backlog over 200 million is historically, a very strong backlog, we have been over 200 million for the last nine quarters.
During which time the backlog has fluctuated between 204 million and 276 million, our third quarter ending backlog of 231 million is by historical standards are very high backlog.
In addition, our order book for the precast concrete business remains elevated even as we move into the seasonally slower time of the year.
Third quarter net sales of 77.6 million were positively impacted by a $12.5 million contribution from the Geneva pipe in precast assets, which were acquired in late January of this year.
Among legacy margins and positive contributions from.
Geneva helped drive a slight year over year increase in our gross profit dollars to 15.6 million and the gross margin that exceeded 20%.
Into 2021 market demand is projected to remain solid and the structure of our business remained stable and strong I would now like to turn to a discussion of our two pronged growth strategy.
First maximizing our core steel pressure piped water transmission business remains key to our strategy. We've made significant progress over the last three years and reducing project costs through focusing on lean manufacturing driven cost reduction programs.
As many of you are aware, we currently have approximately 50% market share and steal pressure pike market a market that is between 450 and $600 million of annual business with an expansion or acquisition opportunities that are fairly limited. Therefore, our goal is to continue to optimize their.
Business in order to drive maximum shareholder value.
The second prong of our strategy is to grow in the pre cast concrete market. We had entered this market in January of this year with the acquisition of Geneva pipe in pre cast the addressable U S market and the water related pre cast concrete business is three five to 5 billion annually.
Despite the current complex environment pre cast demand has held up well driving strong revenue elevated order book, even as we head into the traditionally slow part of the year. We continue to believe that this mark of possession strong growth opportunities with high margin potential and a superior cash flow profile. We're also.
Option is expected to begin in 2021.
In the Western market, California, prop one $7.5 billion bond for water infrastructure has created a much needed funding for projects within the state. According.
According to the California Natural resources agency, 95% of those funds has been appropriated for various projects as of the 2000 2021 fiscal year, we expect requirements for these projects to stretch out over the next several years.
Water reuse programs have generated new opportunities in the California market on which we expect to see bidding activity continue for the next year bidding activity related to large pure water reuse projects has resumed we've identified three sizable projects bidding in 2021, representing 6600 tons.
MWD is heading a regional reuse pilot project in conjunction with La County Sanitation District. This reuse program will tree in recycled water from one of the largest reclamation facilities in southern California, and involve 60 plus miles of large diameter pipe the current demonstration facility.
Has been operating for six months and construction of the full scale treatment conveyance facility could begin as early as 2025.
The PCCP rehabilitation programs will result in about 5000 tons annually over the next two to three years currently some of the owners undertaking rehabilitation programs has slowed their schedules, which appears to be coping related. These projects are not indefinitely postponed just shifting out from the original schedule.
Yes.
The sites reservoir as a water storage project that has received funding from prop one it will involve over 30 miles of 144 inch pipeline. The project is forecast to begin in 2024 25.
Southern Nevada water authority has begun moving forward in earnest with an expansion of the southern part of their water delivery system. This program, which has recently started preliminary design activity will include approximately 25 miles of 78 in steel pipe with construction tentatively scheduled for 2024.
In North Dakota progress has slowed on the 140 mile and 7000 ton Revett Red River Valley water supply projects.
A two mile demonstration project has been forecast a bit late in 2020 early 2021, the bulk of the project is dependent upon 2021 legislative session to commit to full funding plan.
In Colorado, we are tracking a late 2020 final record of decision by the US Army Corps of engineers for the Northern integrated supply project, if favorable construction of up to 150 miles of pipeline is expected to start in 2023. The project is located 60 miles north.
As of Denver in the Fort Collins area.
In summary, we are very proud of our employees for their ongoing commitment to working safely and very adhering to stringent health protocols to help prevent the spread of COVID-19, while the challenges of the pandemic have created for the broader economy and our business might have caused a few issues in the short term.
We believe the structure of our business is solid for the remainder of 2020 and beyond. Furthermore, we remain well positioned to execute our strategy given the essential nature of our operations to provide critical water transmission systems, coupled with our strong balance sheet and liquidity position.
As we move forward, we will remain focused on our number one priority of taking every precaution to keep our employees safe during the COVID-19 pandemic.
Number two the ongoing integration of the Geneva concrete pipe and precast assets number three a persistent focus on margin over volume.
Number four identifying strategic opportunities to grow the company and last but not least continuing to implement cost reductions and efficiencies at all levels of the company I will now turn the call over to Aaron who will walk through our third quarter financial results in greater detail. Thank you Scott and good morning, everyone.
I hope, you're all staying safe and healthy I'll start by detailing our third quarter performance and will offer some additional color on the remainder of the year.
Adjusted net income for the third quarter of 2000 $27.7 million or 78 cents per diluted share compared to adjusted net income of $8.9 million or 91 cents per diluted share for the third quarter of 2019.
Adjusted net income excludes unique and unusual items and has provided for comparability purposes.
The main adjustment in the third quarter of 2020 with zero point $5 million in amortization of intangible assets acquired with Geneva pipe and precast.
Included in net income for the third quarter of 2012, 2019 was $2.3 million of income associated with legal settlement related to pipe produced at our former tubular products facilities.
Your point $7 million net insurance recovery for the second our fire sure point $5 million acquisition cost for Geneva, as well as the associated estimated tax impact of those charges.
Please refer to the reconciliation of non-GAAP financial measures in our earnings release for a full accounting of the aforementioned items.
Our third quarter sales were the highest quarterly level achieved since the first quarter of 2013 and increased 3.2% to $77.6 million compared to $75.2 million in the third quarter of 2019.
The increase was due to a 12.5 million contribution from Geneva legacy.
Legacy revenues declined 13% from the year ago quarter due to a 37% decrease in tons produced partially offset by a 37% increase in selling price per ton.
Due to the unique nature of the water transmission systems, we manufacture production tons are not always the best indicator productivity and comparability between periods are highly dependent on project timing and product mix.
Gross profit increased nearly 1% to $15.6 million or 20.1% of sales compared to $15.5 million or 20.6% of sales in the third quarter of 2019, primarily due to the margin contribution from Geneva, partially offset by a decrease production our legacy plants.
The quarterly gross profit and gross profit margins realized in the third quarter of 2020, where the highest achieved in the year and include zero point $3 million of amortization expense associated with Geneva.
Gross profit in the third quarter of 2019 was elevated by zero point $3 million in net insurance recoveries.
When adjusting for these items gross margins would have been 20.5% for the third quarter of 2020 compared to 20.2% for the year ago quarter.
Selling general and administrative expenses were slightly higher than expected at $5.7 million in the third quarter of 2020 compared to $4.9 million in the third quarter of 2019.
The quarterly increase was primarily due to amortization and other costs from the addition of Geneva, along with increased compensation costs.
We had an income tax rate of 26.6% in the third quarter of 2020, which represents the combined federal and state tax rate that we expect in the fourth quarter.
Our tax rate was 19% in the third quarter of 2019, which was reduced by the estimated changes in our valuation allowance.
Now transitioning to our financial condition.
The company's balance sheet remains very strong.
Total available liquidity at September Thirtyth exceeded $85 million, consisting of $30.4 million in cash and cash equivalents and approximately $55 million from our line of credit.
We had 14 for $14.4 million of debt at the end of the third quarter.
We generated cash flow from operations of $14.6 million during the third quarter of 2020 compared to $4.1 million in the third quarter of 2019.
Depreciation and amortization totaled $3.7 million for the quarter.
The company's depreciation varies with our production levels.
Amortization of approximately 0.6 million is expected for the fourth quarter of 2020, however, the amortization of existing intangible assets is expected to decrease to zero point $3 million per quarter as we move into 2021.
Capital expenditures totaled $3.3 million for the quarter and were primarily ongoing maintenance capex.
We expect our full year capital expenditures to be approximately $15 million.
In summary, despite the short term project delays weve encountered we achieved strong third quarter financial results amid a challenging economic backdrop brought on by the plant pandemic.
Continued thanks to all of our employees for their contribution to the company's third quarter results, but even more importantly for their commitment to safety and for making northwest pipe company a great place to work.
I will now turn it over to the operator to begin the question and answer session.
I will now begin the question and Chris also ask a question profit Star Wars or in your Touchtone phone.
Our UK speakerphone, please pick up your handset before profit.
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Our first question today comes from Brent Tillman Global.
Great. Thanks, Good morning, Scott.
Good morning, Brian how are you.
I'm good thanks.
Scott.
The debt that you are seeing sliding ray potentially into 2021, it sounds like the reason aren't as matched funding related but more sort of process related I guess, one how how pervasive or outright.
He'd be sort of job to raise it is across the markets. We serve and are there any similarities in the types of jobs.
Typically that youre seeing flattening as it is it primarily the larger one just be curious with what you're actually seeing out there.
No.
I think the obviously the larger ones take a little bit more time to to get ready and with the remote working environment that we've had in the amount of time, it takes whether to get permitting or engineering drawings done I think its just starting it's just stretch things out enough, where we've seen stuff.
EPS leaking out from quarter to quarter and really into 2020 I wouldn't say it's.
It's it's.
Relegated only to the larger projects, although as you know it takes a lot more time to get these larger larger projects in the work in shovel ready, but that's really what we're what we're seeing is James or things are just moving and taking a longer time to to get queued up to be released we have not really seen.
Anything related to funding.
At all we still see 2020 is a is a pretty good year in 2021 as a year, that's pretty similar that's getting a little bit larger by the amount of work that's moving from 20% to 21. So it's certainly making 2021 look like.
Real solid year.
Okay.
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Yeah, I guess, maybe on that on the fourth quarter, I mean tends to be seasonally.
Slower for you anyway.
So had expected that to come down sequentially just wondering if.
Your expectation for the quarter change from where you said 90 days ago, maybe adopt more work. Good profit up that does is it going to play out I just wanted to get a feel for that.
Yeah, and I think you're right by say human year and at the time of the year in the fourth quarter were the two major holidays, but but there has been some work that has slipped out from the fourth quarter into 2021, now we still expect the fourth quarter to be a pretty good quarter, but obviously when you compare to.
The third quarter of this year, which which were viewing is a really solid quarter, it's a little bit less so I think thats, probably the best way to look at it we have seen stuff slipper jobs bidding that should have slipped out enough to affect the fourth quarter, but also job centre.
In contract and under backlog that may have some delays related to get started to and if the those kind of delays tend to compound themselves a little bit if you have a little bit of a delay from the customer then all of a sudden you're you're trying to get steel end and there's a steel delay and you may not be able to get it into the next.
Tier so those things have caused the fourth quarter to moderate down a little bit versus versus what we see in the third quarter.
Yep.
Another quarter with at a pretty good size benefit from pricing and I think I've asked this before Scott.
Can you can you somehow dissect what portion at that.
Improvement you're seeing that 37% is the fact that steel prices have moved higher versus just a better kind.
Kind of bid pricing environment as a result of some of the consolidation of the industry I think I think that becomes interesting, especially when you start to see volumes come back.
And I think the when you look at that it's still very large extent driven by the product mix that were running in a certain period and obviously this this period is the third quarter. So yes, and you have a lot of projects that have significantly different pricing and cost associated.
For example, you could have a project it has a small amount of tons that has a selling price that's $5000 a tonne or you could have a project that has quite a bit of tons. That's maybe a 3000 dollar selling price that still has a 20% margin right. So really I think the most important thing is to look.
Get here is the margins because we've really seen the the pricing fluctuate around a mean and there's so many different projects, it's really hard to get a real handle on how much prices moving the real measure of it is what does the margin look like in and is we're generating these 20% margins.
We feel pretty good about the pricing level and and the way things look as we go forward.
Okay, one more and I'll pass it on and I, just I mean, it looks like.
Better cash that are cash flow this quarter any details.
You kind of just around the specifics of that this quarter.
No nothing nothing has changed from our focus on on different assets. So so really.
Things have continued to go well there on our management of accounts receivables I think I think our inventories up a little bit.
Just kind of a normal normal bumps things going to ebb and flow a little bit with our working capital. So large part. It's just it just earnings based and we have been had been.
Kind of pumping out some good earnings and.
And realize the corresponding cash flows in the third quarter. This year. So it's been it's been good.
Geneva, then a big help to it.
You know a little bit Brent I think.
Certainly there are only about 15% of our business right now.
With with our with our acquisition of Geneva, and nerve center for his plan to the precast space. So yes, I mean, I think there are certainly helping.
You know I think.
Once we get a little bit more scale, there, we'll see a little bit more more effect from from there to our cash conversion cycle.
Okay, great. Thanks for taking all the questions.
Thanks, Brent Brent.
Our next question comes from cost Richard with Northland.
Yes, thanks for taking the question.
Okay and can you give up can you talk a little bit about the gross margin contribution.
And sort of how.
How much that's helping helped in the quarter.
Yes, I think when you look at the Geneva gross margin contribution minus any any onetime hit.
Hits that might be taken it's pretty much in line with the water transmission.
Steel pressure pipe contribution for the quarter.
And as we've said just as we've gone through this thing we believe that the Geneva margins or towards the high side of what the water transmission contributions are there's still pressure pipe contributions and since we're at a point now where we've gotten these.
The steel pressure pipe contributions on the gross margin level up to 21%, it's there they're pretty pretty similar as we've gone through this period of time.
Okay, and then in terms of Geneva, I think you.
2019, they did about $43 million and and you are on a run rate of $50 million in the current quarter.
Kind of implying mid mid teens kind of growth rate is is that.
Not the way to think of it as just a seasonally strong quarter or or should we be thinking about growth of Geneva and that ballpark or any any help there again.
Yes, what I would say is that the fourth quarter of the year.
On the free cash businesses generally the the slower quarter of the year and kind of like when we when we did the the yes. The call on the acquisition of Jimmy that we're expecting the Geneva business to be somewhere around $45 million for the year, our understanding that we.
Didnt own them in the January timeframe. So you take a little bit off for the January timeframe of about 45. So your menu, we talked about a growth rate there thats, probably a CAGR are somewhere in the area of about four 4.5% as you go forward in that market actually has held up quite well.
And our order book for Geneva, as we're moving into the slow time of the year EPS remains pretty steady which is by historical standards April it pretty elevated order book in as we move forward with the things that we're looking at with some of the re forecasting on housing starts.
Stan population growth in interest rates, it's certainly bodes well for the free cash business and I think when you look across a lot of the lines in the precast business right now a lot of the the free cash businesses that we've seen in the we've talked to are pretty much at the height of.
Of how they've been doing so they are all making pretty good return. So we we expect a pretty good precast market as we go forward for a while.
Got it and then on.
The reclamation opportunity in California.
Q can you talk a little bit more about that and.
Is that a 2022 opportunity 20 2020.
How does that rollout and do you see that picking up and.
Other other states and does that also play to your precast business, sorry, a lot of questions yes.
Yes.
Okay.
Try to get back to the first one okay. So when you see with what we're seeing in the water reuse business, obviously, that's taking.
Dirty water in.
In treating it to be re used as as portable water.
We're seeing more that start to to come up.
It's been on the drawing board I guess, a couple of those projects in California for quite a period of time and we're just really now starting to come to fruition. Those are probably 2021 projects you probably see some of the stretching out the 22 and 23, so it's definitely much more.
Prevalent in California than we've seen in other places, although some of the other well some of the other places in the west.
The western United States has talked about it but certainly not as prevalent as what we've seen the discussions being California. So we think that this is a a.
A growing trend and likely is that something we should see grow in not only in California, but in different parts of the western United States and ultimately does it spread to the eastern and central part of the United States I think it's that's to be seen but the way that things are going I think it's likely that it spreads.
Those other regions presenting more opportunities for us to go forward in the business to provide steel pressure pipe, we havent really seen any opportunities there related to the pre cast side of the business at this point, which doesn't mean that we won't.
But.
We are seeing various opportunities for the free cash business in California.
Related to jacking pipe and things of that nature that are that are concrete pipe applications. So let's cut thats just a lot of words on the question you asked so hopefully that answered your question Gus.
That's very helpful and then in your.
Prepared comments, you mentioned opportunities in.
Order for pre form not not wastewater and I was just wondering.
What what that was referring to just clarify that comment for me a bit.
Yes, we when we talk about opportunities in water for the precast business its water water and wastewater. It's generally when you look at that point $5 billion to $5 billion water related markets. Those are those projects are related to.
Drainage there related to storm sewer to some extent samit sanitary sewer and things of that nature. So it's really the wide range.
Got it that's all for me thanks, so much.
Yes.
Your next question comes from David Wright with Henry Investment Trust.
Scott and Aaron good morning.
Hi, David.
In in in your remarks, Scott you referred to the steel order book and.
Obviously, the steel prices recently have gone up a lot and capacity utilization is up.
Can you give any comments so over say the last three four or five months.
How the recovery in the steel market has affected northwest pipe.
Whether with respect to delivery times or otherwise.
What I would say one of the things about the steel industry right. Now is there is a there is a significant amount of of outages that are going on in the business at this point in time.
Around.
Several major producers so our best figures on what the capacity utilization is in the in the steel production business, it's probably somewhere in the area of about 65% to 70%, so they're down quite a bit based on having having.
The.
The facilities down for required maintenance, whether it's realigning the furnaces or things of that nature. So so that's that's tightened the supply a little bit.
As we've gone through this period of time, and we have seen prices move up significantly in the steel business. When you look at hot roll coil that price based on the latest price that Weve seen this week is probably up a 150 or $160 a ton over the last three months or so so whether that continues.
As the as the maintenance outages are finished in capacity comes back online Theres also some additional new capacity coming online with the steel industry. I believe it's another 1.5 million tons that I believe its big River steel companies, bringing online. So so that adds a bunch more.
Back into the market. So it looks like there could be some downward pressure on steel prices as we go forward in the near future for us when steel prices go up we like higher steel prices.
It doesn't bother us at all because what that drives is you know.
Higher revenue numbers, because that's built into our project cost and you know, we like 20% margin.
280 million more than we'd like a 20% margin on 260 million. So it's just it's just more margin dollars. What we don't like in the steel side is when it gets too volatile where it starts to get a little bit disruptive to the bidding process when it moves so quickly and when lead times.
Jump out it costs, a little more problem, but.
I think that will start to abate here.
In the relative near term okay.
Okay, and then you were talking about and then Gus was asking about.
Additional opportunities to expand free cash for water.
Are there pre cast products that the company doesn't presently make that you want to add to the portfolio or would the opportunities we looked at it more as either geographic or capacity additions.
Well there is.
Gallagher fees have certain demands right now.
Our geography is in the precast business is really any around.
The state of Utah in the surrounding states because the pre cast product generally doesn't ship much more than a 120 to 150 miles. It's a relatively local business. Now we also have pre cast capabilities at our Tracy plant to be able to make a webcast RCP.
Pre cast product, it's more of a.
Specialty product, but quite frankly, there are many many other pre cast products that could be added to the portfolio and I think what was in your question. Some of those are geographic related.
As you look look at getting into new markets, whether it's through acquisition or through building out pre cast capabilities at our some of our existing plants. I think there are additional products that are that are out there, but whether they are more related to control systems.
That are.
In pre cast vaults and things of that nature, but there are many many different products that can be gotten into some of them are one unrelated because if you think about the precast market you know the water piece of it is three and a half to 5 billion, but the entire precast market.
We thought originally it was probably about a 14 or $15 billion market, but it is it's looking now it's actually quite a bit bigger than that so but those are other products like utilities in in different structures. Some of them will bridge products and things like that.
So the pre crashed market is gigantic and there's a lot of growth opportunities for products not only in water, but really in the entire free cash market and quite frankly, even some of the stuff that we do at Geneva now isn't isn't water related it's a relatively small part of the product portfolio.
So, but it isn't water related in as you grow in that business and even growing in the water side of it you are bound to pick up not only additional water products, but also products that are pre cast that are outside of water.
Okay, well sounds like Geneva is a great platform to try to find other opportunities to expand into yes.
Yes, we are we are we like the way Geneva looks I think it's it's performing at least as well as we thought when when we did the acquisition and we think there is tremendous amount of potential there so grateful.
Great and then lastly, so in terms of steel pipe and steel water pipe in time.
Geneva business too for that matter.
Year end user customer is I think almost exclusively state and local or.
Municipal authority related.
Northwest pipe tends to get grouped in with the so called infrastructure stocks in the price of the stock moves around a little bit.
Seeing that recently with a little pull back generally in infrastructure related stocks.
Is any portion of your current order book.
Okay.
Federally funded or is there any reason in the future the northwest pipes business would become.
The federal funding would present opportunities for north West business.
Well there is generally when you when you are dealing with.
The municipal projects through state level or whatever level. They are looking at.
If they are coming out of the state revolving funds those are state funds in generally there's EPA federal funds in those but we are not seeing any any.
Projects that we currently have with any funding issues. In fact is we look out and we're working on our three year strategic plan now for the company as we look out over the next three years.
It is over the next three years.
Already that 75% to 80% of the projects that we're looking at have funding or funding mechanisms already in place and in that is nowhere any infrastructure driven stimulus package, which we believe at some point could be in the offing here. So.
So right now we're not seeing anything around those.
Funding issues okay.
Okay, great well, thanks for that answer thanks for taking my questions and be well.
You too David Thank you.
If you have further questions. Please press star and then why not this time.
Our next question is a follow up from great feeling like David said.
Hey, guys. Thanks.
I'll take a crack at that.
Your work.
Scott is there is there any reason beyond them sort of collapse in steel prices, which doesn't look like it's happening right that this positive mix trend, which reflects in pricing. This quarter, and then I guess last quarter as well that could that could reverse next year and we're materially again in 2021.
Well, there's always there's always potential pressures on pricing there as we've talked about multi.
Multiple times, there's a new facility starting up in Texas in 2021, which we think that probably puts a little bit of pressure in that region on the margins for a period of time, but again, what we're seeing is as we look at our plan for the next three years.
As such large demand not only in Texas, but going out over a three year period that that ultimately there is there's probably enough demand where that pressure on margins doesn't last for a really long time. The other thing that we're seeing is a little bit of a demand shift that we see that we've talked a little bit in the past.
About Brent, which is demand growth in California, and probably as we go forward over the next.
Two to three years that you may have a situation where the largest demand market for a period of time is going to be the western United States driven significantly by the state of California.
So so there's some things out there and there's always always those competitive things, but but I think the way things are lining up with the demand right now its still looks pretty solid.
Right, well and I guess, Scott I mean doesn't knocking on.
Say it doesn't shift materially sounds like you got a pretty large potential pipeline had been opportunities for next year.
Not larger than what you thought a quarter ago, Geneva that looks to be pretty steady if not better economy, there looks pretty good in the mountain region.
Do you feel confident barring something extraordinary an economy that.
Business should grow next year at least organically.
Hi.
You know, it's hard to say when when you. When you are looking out in a covert environment to be able to make those kind of statements definitively.
Now what I would say Brent is the structure of the business still looks to be strong as we go out over the next couple of years now could co would affect that it's possible.
But it still looks to be strong and we haven't seen any projects that are canceling just moving around so it could affect certain periods of time, but but over the next three year period, the business still looks to be pretty strong and as long as things continue to hold up.
It looks like the pre cash business is positioned for growth as we go forward.
The Geneva facilities.
Obviously, we continue down the road with looking at M&A opportunities on the pre cast pipe and forms side of the business, which could also create some growth silver over the mid term here. So so I think that there is a pretty good opportunity that the company is going to be growing the steel pressure pipe.
Side, it gets a little bit more nebulous, sometimes simply because job start moving it around and it can affect a three year six month period, but the fundamentals all continue to look very strong to where that it looks like the business is going to be strong for quite a period of time.
Yes, or at a minimum it doesn't look like you have them extraordinary comparisons this year from that from a topline perspective, so that will make our assumptions. There. Thanks, guys you guys because you're absolutely right.
And again, if you do have a question. Please press Star then one.
Thanks for all the questions I would like to turn the call back over to Scott Montross for any closing remarks.
Well. Thank you again for joining our call today I'd like to conclude by reiterating that despite the near term projects that we've seen with projects delaying into 2021.
We are still very well positioned to continue to execute on our strategy and support the water infrastructure needs of of the United States well into the future.
As I've said, when we look out into 2021 bidding activity is continued to be projecting to remain very strong our backlog in steel pressure pipe has been over 200 million for the last nine straight quarters, and our precast concrete order book remains elevated even as we enter the slow time of the year. So the strip.
Capture of our business remains strong in all this despite being in a pandemic environment. So I think we're well positioned quite well as we go forward and I just like to thank everybody again.
For joining the call I'd like to thank our employees for their strong operational execution and commitment to northwest pipe and we look forward to speaking with you again on the fourth quarter call in 2021. So thank you very much.
Thanks.
The conference welcome Chris. Thank you for calling todays presentation you may now disconnect.