Q4 2022 Dycom Industries Inc Earnings Call
Good day, and thank you for standing by and welcome to the di come Industries fourth quarter 2022 results conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you'll need to press star one on your telephone.
Please be advised that today's conference maybe recorded.
I'd now like turn the conference over to your host today, Mr. Steven Nielsen President and Chief Executive Officer. Please go ahead Sir.
Thank you operator, good morning, everyone I'd like to thank you for attending this conference call to review, our fourth quarter fiscal 2022 results.
<unk> dislike too.
During this call we will be referring to a slide presentation, which can be found on our website's Investor Center main page relevant slides will be identified by number throughout our presentation.
Today, we have on the call drew that Ferrari, our Chief Financial Officer, and Ryan Urness, Our General Counsel now I will turn the call over to Ryan or Dash.
Thank you Steve all forward looking statements made during this call are provided pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1095.
Forward looking statements include all comments, reflecting our expectations assumptions or beliefs about future events or performance that do not relate solely to historical periods.
Forward looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections, including those risks described in our annual report on Form 10-K filed March 5th 2021, together with our other filings with the U S Securities and Exchange Commission.
We assume no obligation to update any forward looking statements.
Thanks, Ryan now moving to slide four and a review of our fourth quarter results.
As we review our results. Please note that in our comments today and in the accompanying slides we reference certain non-GAAP measures. We refer you to the quarterly report section of our website for a reconciliation of these non-GAAP measures to their corresponding GAAP measures to begin I want to express my sincere thanks to our employees.
<unk>, who have served our customers with real fortitude and difficult times now for the quarter.
Revenue was $761 5 million, an organic increase of 10, 1%.
As we deploy gigabit wireline networks wireless wireline converged networks and wireless networks. This quarter reflected an increase in demand from two of our top five customers.
Gross margins were 13, 77% of revenue, reflecting the continued impacts of the complexity of a large customer program revenue declines year over year with other large customers fuel costs and the heightened effects of COVID-19 during the second half of the quarter Jed.
General and administrative expenses were eight 4% of revenue and all of these factors produced adjusted EBITDA of $43 3 million or five 7% of revenue and adjusted earnings per share of <unk> <unk> compared to a loss per share of seven in the year ago quarter.
Included in adjusted earnings per share are incremental tax benefits of 13 cents.
Liquidity was solid at $351 5 million in operating cash flow was robust at $145 5 million, reflecting a sequential DSO decline of five days.
During the quarter, we repurchased 600000 shares for $56 1 million.
Now going to slide five.
Today major industry participants are constructing or upgrading significant wireline networks across broad sections of the country.
These wireline networks are generally designed to provision gigabit network speeds to individual consumers and businesses either directly or wirelessly using <unk> technologies industry.
Participants have stated their belief that a single high capacity fiber network can most cost effectively deliver services to both consumers and businesses.
Billing multiple revenue streams from a single investment.
This view is increasing the appetite appetite for fiber deployments and we believe that the industry effort to deploy high capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry.
Increasing access to high capacity telecommunications continues to be crucial to society, especially in rural America. The infrastructure investment and jobs Act includes over $40 billion for the construction of rural Communications networks, and Unserved and underserved areas across the country.
This represents an unprecedented level of support in.
In addition, an increasing number of states are commencing programs that will provide funding for telecommunications networks, even prior to initiation of funding under the infrastructure Act.
We are providing program management planning engineering and design aerial underground and wireless construction and fulfillment services for gigabit deployments. These services are being provided across the country and numerous geographic areas to multiple customers.
These deployments include networks, consisting entirely of wired network elements and converged wireless wireline multi use networks.
Fiber network deployment opportunities are increasing in rural America, as new industry participants respond to emerging societal initiatives. We continue to provide integrated planning engineering and design procurement and construction and maintenance services to several industry participants.
Macroeconomic effects and supply constraints may influence the near term execution of some customer plans broad increases in demand for fiber optic cable and related equipment may cause delivery volatility in the short to intermediate term. In addition, the market for labor remains tight in many regions around the country.
It remains to be seen how long this condition persists.
Furthermore of the automotive and equipment supply chain remains challenged particularly for the large truck chassis is required for specialty equipment.
As for capital equipment are increasing.
As we contend with these factors, we remain confident that our scale and financial strength position us well to deliver valuable services to our customers.
Moving to slide six.
During the quarter organic revenue increased 10, 1% our top five customers combined produced 66, 6% of revenue increasing five 4% organically demand increased from two of our top five customers all other customers increased 28% organically.
<unk> was our largest customer at 26, 6% of total revenue or $202 6 million AT&T grew 73, 6% organically.
This was our fourth consecutive quarter of organic growth with AT&T revenue from Comcast was 100 million or 13, 1% of revenue Comcast was <unk> second largest customer.
Lumen was our third largest customer at 11, 7% of revenue or $88 8 million.
Verizon was our fourth largest customer at $76 9 million or 10, 1% of revenue.
And finally revenue from frontier was $38 6 million or five 1% of revenue frontier grew 97, 2% organically.
This is the first quarter since October 2019 were our top five customers have grown organically and the 12th consecutive quarter, where all of our other customers in aggregate, excluding the top five customers have grown organically.
Of note fiber construction revenues from electric utilities was $57 4 million in the quarter and increased organically 37, 2% year over year.
We have extended our geographic reach and expanded our program management and network planning services in fact over the last several years. We believe we have meaningfully increased the long term value of our maintenance and operations business a true.
<unk>, which we believe will parallel our deployment of gigabit wireline direct and wireline wireless converged networks as those deployments dramatically increase the amount of outside plant network that must be extended and maintained.
Now going to slide seven.
Backlog at the end of the fourth quarter was $5 822 billion versus $5 $8 96 billion at the end of the October 2021 quarter essentially flat.
Of this backlog of approximately three point O seven 2 billion.
It was completed in the next 12 months.
Backlog activity during the fourth quarter reflects solid performance as we booked new work and renewed existing work, we continue to anticipate substantial future opportunities across a broad array of our customers during.
During the quarter, we received from AT&T construction and maintenance agreements.
In California, and Nevada, Texas, Missouri, Wisconsin, Indiana, and Ohio for Illumina, and construction and maintenance agreements for Washington, Oregon, California, Arizona and Arkansas.
From Comcast and engineering agreement for Michigan, Pennsylvania, Massachusetts, Delaware, Maryland, and Georgia ports.
For Jetblue fiber a fiber construction agreement in Washington, Oregon, and Idaho, and various utility line locating agreements in California, and Virginia head.
Head count increased during the quarter to 15024.
Now I will turn the call over to drew for his financial review and outlook.
Thanks, Steve and good morning, everyone going to slide eight.
Contract revenues were $761 5 million and organic revenue increased 10, 1% for the quarter.
Q4 of the prior year included an additional week of operations due to the 50 253 week fiscal year and $5 7 million of revenue from storm restoration services compared to none in Q4 of this year.
Adjusted EBITDA in Q4 was $43 3 million or five 7% of revenue compared to $45 7 million or six 1% of revenue in Q4 of last year.
Gross margin was 13, 8% of revenue for Q4, 'twenty, two and declined approximately 50 basis points compared to the non-GAAP adjusted gross margin in Q4 'twenty one.
Covid related absences increased significantly in the quarter and peaked at a level of approximately two three times higher than in Q4 of last year. The rapid increase in higher overall level compared to the prior year impacted productivity during the second half of the quarter.
In the month of February Covid cases for the company of decline back down to historically low levels gross margins in the quarter were also impacted by adverse winter weather conditions.
G&A expense of eight 4% improved approximately 10 basis points compared to Q4 'twenty one from improved operating leverage at the higher level of revenue in the quarter non.
non-GAAP adjusted net income was <unk> <unk> per share compared to a non-GAAP adjusted net loss of seven cents per share in the year ago period.
Q4, 22 included approximately $4 2 million or <unk> 13 per share of incremental tax benefits, including credits related to filings for prior periods.
The total variance in net income reflects the after tax decline in adjusted EBITDA as well as benefits from lower depreciation amortization stock based compensation and income taxes offset by higher interest expense and lower gains on asset sales.
Now going to slide nine.
Our financial position and balance sheet remains strong we ended the quarter with $500 million of senior notes $350 million of term loan and no revolver borrowings cash.
Cash and equivalents were $310 8 million and liquidity was solid at $351 5 million.
Our capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A within the context of our historical range of net leverage.
Going to slide 10.
Operating cash flows were robust at $145 5 million in the quarter, bringing year to date operating cash flows to $308 7 million.
Capital expenditures were $43 4 million net of disposal proceeds and gross Capex was $43 6 million.
Looking ahead to fiscal 2023, we expect net capex to range from $180 million to $190 million.
During Q4, we repurchased 600000 shares of our common stock at an average price of $93 55 per share for $56 1 million.
Our board of Directors has approved a new $150 million authorization for share repurchases through August 2023.
This authorization replaces the remaining amount from our prior authorization.
The combined Dsos of accounts receivable and net contract assets were at 108 days.
An improvement of five days sequentially from Q3 22, as we made substantial progress on a large customer program.
Now going to slide 11, as we look ahead to the quarter ending April 32022, the company expects contract revenues.
Increase mid to high single digits as a percentage of contract revenues compared to Q1 of last year <unk>.
And we expect non-GAAP adjusted EBITDA percentage of contract revenues to increase modestly as compared to Q1 of last year.
We expect the non-GAAP effective income tax rate of approximately 27% and diluted shares of $30 2 million now I will turn the call back to Steve.
Thanks drew moving to slide 12, this quarter, we experienced solid activity and capitalized on our significant strengths.
First and foremost we maintained significant customer presence throughout our markets. We are encouraged by the breadth in our business. Our extensive market presence has allowed us to be at the forefront of evolving industry opportunities telephone companies are deploying fiber to the home to enable gigabit high speed connections.
Increasingly rural electric utilities are doing the same dramatic.
Dramatically increased speeds to consumers are being provisioned and consumer data usage is growing particularly upstream.
Wireless construction activity in support of newly available spectrum bands is expected to increase this year.
Federal and state support for rural deployments of communications networks is dramatically increasing in scale and duration.
Cable operators are deploying fiber to small and medium businesses and enterprises.
A portion of these deployments are in anticipation of the customer sales process deployments to expand capacity as well as newbuild opportunities are underway.
<unk> are consolidating supply change, creating opportunities for market share growth and increasing the long term value of our maintenance and operations business.
As our nation and industry continued to contend with the COVID-19 pandemic, we remain encouraged that a growing number of our customers are committed to multiyear capital spending initiatives. We are confident in our strategies the prospects for our company the capabilities of our dedicated employees and the experience of our management team.
Now operator, we will open the call for questions.
Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw.
All your question press the pound key our first question comes from Alex Rygiel with B Riley Your line is open.
Thank you and good morning, Steve and very nice quarter, Hey, good morning, Alex.
Steve when we look at backlog total backlog is down 15% year over year 12 month backlog is up 10% year over year. Your commentary appears to be very bullish many leading indicators out there suggest bullish environment for telco spending on fiber in 2022 can you help us too.
To reconcile sort of backlog versus <unk>.
Fairly bullish commentary.
Sure Alex.
As you know about 90% of our business is under long term contracts and Master service agreements and when we when we come up with the total backlog estimate for those we look back for a trailing 12 month period.
Multiply that run rate times, the number of months remaining and so it is sensitive to duration. It's also sensitive to just kind of being a backward looking.
Estimate.
As opposed to the next 12 months rate that is that's forward looking.
And the way that it's calculated so.
I think.
Part of it is just an estimate and the other thing that I would say is that the on a number of the fiber programs that we've announced a couple of these over the last couple of quarters. The duration of those agreements has been a little bit shorter and.
And as we've talked about in November .
That's something that we don't find troublesome theres lots of work out there. There is certainly some some costs that are increasing and when cost are increasing.
We're comfortable with having a slightly shorter duration in the backlog, we think that's just a prudent way.
To manage.
In the current economic climate.
And a follow up coming off a year that witnessed historical low EBITDA margins of seven 8% can you address your expectations for margins over the next few years.
Again, Alex we've talked about this before you know we've had this challenging a large customer program, but certainly had an effect in the year and in the quarter. Although as we said last quarter, we expect that to diminish each and every quarter as we go through the balance of this fiscal year.
And then you know we are.
Also encouraged with the with the fourth quarter and that our top five customers.
Grew by five 4% organically that's the first time.
Since October 19 show nine quarters, since we've done that and historically as we get broader growth across across the top five customers as well as all other that gives us a good opportunity to generate operating leverage. It also gives us a good opportunity to be careful about where we commit resources.
Given the significant number of opportunities in the marketplace to make sure that where we commit we're committing to where we can best do the job for the customer and if we're serving the customer well that typically works well for us.
Very helpful. Thank you Steve.
Thank you. Our next question comes from Steven Fisher with UBS. Your line is open.
Alright, thanks very much.
Yeah. You included the same comments about the macro and supply chain. This quarter as you did last quarter.
What's the actual impact that you're seeing there.
And is that having an incremental impact.
The start of Q1 already relative to what you saw in Q4.
Yeah, Steve look I think there are certain elements and sometimes they're odd Ela mentioned the network that are short I think we've spoke.
Short supply we've spoken about this before things that are made out of.
Black resin plastic.
It has been it has been an issue.
Think the fiber optic cable.
<unk> is generally for the larger customers that have allocation.
Has become less of an issue, although there always can be a mismatch as to the exact size cable that you need for particular project versus what's available.
For smaller customers those that don't have allocations I think it has been a little bit more volatile I would say just like we've seen in our fleet purchases.
It's not ideal, but its become better than it was.
<unk>.
For example, at our own fleet purchases, we were able to acquire about $44 million worth of equipment in the quarter I think six months ago.
Even though we had it on order.
We werent able to spend that kind of money, so so better, but but not behind us or not by the industry.
Not just us it's everybody.
Okay and I wanted to just ask you about labor inflation as a potential.
That factor in the margin calculation, just wondering how much of that labor inflation Youre seeing is a headwind to margins are you.
Perhaps kind of passing it through dollar for dollar and Thats being dilutive are you able to get a little bit of pricing ahead of that and I guess related to this.
Or are you, making investments now ahead of what you are anticipating seeing in the strong growth opportunity that maybe went from a labor perspective.
5% hiring growth year over year in the quarter.
Are you making investments now.
That also might be a bit better.
Near term drag on the margins that may moderate over the next couple of years.
Sure.
Look I think we're no different than everybody else.
In the industry and probably more broadly in the economy, particularly around new hires in semi skilled positions it costs more to bring people through the door.
We're actively recruiting and training.
During the quarter, we had weeks, where we brought in 150 200, new employees. So we're able to do it we.
We had nice low double digit organic growth, so we're able to create capacity.
But it's a little more expensive than it was and so typically see when we've been through this before and I think you identified that you want to be.
You're always pushing productivity inside your existing workforce.
To offset the impacts of wage inflation. So we got to get better at what we do and how we do it and then probably as or more importantly, you've got to be very careful about where you commit to customers to make sure that the arrangement that you agreed to is one that as you look forward into the future.
That you'll have the ability to secure the capacity.
To meet their needs.
I called out in the past.
You need to be confident.
About the forward cost curve as you make commitments to customers.
We continue to spend lots of time on that I think we're in a good position.
In the industry.
Working hard, but I think we're in a good position because we see so much of the opportunity across the country that we have an ability to really get a you know it almost day to day view as to what the right.
Price points are to make sure that we're reflecting current cost to provide the service.
Thank you.
Thank you. Our next question comes from Sean Eastman with Keybanc capital markets. Your line is open.
Good morning, Steven drew.
I'd just like to hone in on the margin guidance for the first quarter. Firstly could you put a finer point around what modest improvement means and then.
It would be really helpful to understand what's in the year over year bridge on margins.
Sort of what the underlying trend is versus other.
Other factors like fuel or.
Labour inefficiencies things like that that'd be great.
Well, Sean with respect to kind of where that what modestly means I think from what I've seen this morning, I mean, I think it's in line with where people were thinking so.
I don't think we have a definite.
Substantially different view.
Where folks are and then drew in terms of the bridge.
Yes, Sean year over year.
Talk about Q4 for example to start and give you some indicator.
Fuel.
We thought it would be up about 50 basis points, it was slightly higher than that in the quarter and so we're actively watching that as a as a line item.
There is as Steve had mentioned lessening effect of a large customer program.
Would be the other piece and then turn.
Turn it back to you, yes, I mean, the other thing Sean this is a quarter when it when it comes to forecasting margin, where the best weather in the quarter as well as the last month of the quarter. So it's always a challenge put a fine point on it and then obviously you folks are looking at some screens I don't know where oil is trading this morning, but I know it's higher than it was.
Yesterday, and so we wanted to take a prudent view of.
Where energy prices could go down if it goes to $200 a barrel it might be a.
Factor, but but right now we are we feel comfortable with where we were.
Struck up perspective on fuel.
Okay Super helpful and.
We've talked about how.
Over the last 12 months margins are.
It had been running at that historical average I think in the mid 11% ex the complex customer program.
Is that where we're kind of running coming into <unk>.
Fiscal 'twenty three or are there other are there some other puts and takes to consider there I guess, maybe if fuel stays where it is right now how much of a drag would that be year over year.
What other factors should we consider as we think about the bridge back to that historical average.
I think Sean if we just look at the current quarter I think it was modestly behind kind of an adjusted basis for the large customer program drew had mentioned in his comments and this is a difficult concept to two two.
<unk>.
Put a fine point on but clearly when you have almost 600 employees in quarantine at the peak.
That certainly had some impact on utilization.
As well as efficiency.
If you have.
Five crews working somewhere in the folks that are in part D or the <unk> form and that certainly has an impact on on how organize we could be during the period of time in which they were off.
So I think that was was also a factor.
In terms of fuel Sean I mean, obviously, we we prefer it to go down and settle back.
But I do think we're actively as I mentioned earlier as we're looking to wear to commit.
Capacity, we want to make sure we're committed in those places where we have a good sustainable arrangement with the client and where we can do a good job for them.
Both in the field and then for ourselves in terms of returns.
Uh huh.
That's a day by day art, not science, but we've been here before and managed through it before.
Okay, Great I appreciate the insight I'll turn it over there.
Thank you. Our next question comes from Adam Thalheimer with Thomas Davis. Your line is open.
Hey, good morning, Steve and Jim Hey, Good morning, Adam.
Actually I wanted to ask my first question something you said in.
Response to Alex's question. It is shorter duration contracts, what did you mean by that Steve well.
Adam we talked about this before on prior calls so so in periods of time, where you have more.
Certainty around the forward cost of inputs right, where we have a good idea where costs are going to be we're happy to have discussions with customers around lengthening, perhaps what would be normal industry terms.
In a in a less certain forward cost environment, if a customers offering a two year agreement, we're happy with that if theyre offering a three year agreement, we're happy with that we're not likely to try to convince them to go longer.
Which would have been what we might have done.
In a different cost environment.
And the analogy that I draw.
Adam is when you go through a recession, it's often tempting in a recession to try to book some backlog because you don't have great earnings to talk about or you don't have any growth to talk about and we've always been careful in that situation that you don't take some <unk>.
Temporary dislocation that you see in that economic cycle and extended forward through your business.
And so in this case, it's kind of a similar situation, we want to make sure that the backlog that we're booking.
Contemplates what it will take to be successful not only when we sign it but.
Year or two later when we're doing the work.
Okay, and then I was hoping high level. If you could talk about just the bidding environment in general and also also the pricing.
Well as we've always said, Adam we only talk about pricing two ways acceptable and attractive.
And I would say that we're in the attractive bucket.
So that when we're committed and we feel good about what we're signing up for.
There is a lot of opportunity out there we talked last quarter. The number of customers that had announced fiber to the home program.
Just when you thought nobody else would announce an increase to their expectations of what they'd like to get done through 2025, we had two or three additional customers who took up their fiber to the home expectations through 2025.
So there is a lot of opportunity, it's coming not only from traditional customers, but also.
Infrastructure funds and others, who are who are interested.
In creating.
Fiber networks.
That have not historically.
Been in the industry.
Good color. Thanks, good luck in Q1.
Thanks, Adam.
Thank you. Our next question comes from Brent Thielman.
With D. A Davidson your line is open.
Hey, Thanks, Good morning drew.
Good morning, Brett.
Steve the growth outlook for the first quarter.
Definitely encouraging.
Yes question for me is.
Embedded in that growth expectation is that entirely contingent on just a few kind of selected customers here or are you seeing a scenario where that broadening and we could see sort of a wider brand band of customers start to contribute here in the first quarter.
Well I mean, certainly in the fourth quarter and throughout last year, Brent I mean, we had good growth below our top five customers. So even in the fourth quarter was 20% and so that's a whole bunch of customers, we had 37% with rural electric utility. So I think we continue to see.
Broad opportunities I would tell you that we've had lots of growth with our largest customer they continue to be very aggressive in terms of how much they would like to get done this year and probably for several years thereafter, So I think thats something where we have good momentum I.
I think it's been 354 years branch since we actually had a January quarter larger.
Then the October quarter for our top customer.
Thats.
Helpful and then clearly there are others.
Where where we do expect to see some some turn in terms of growth expectations going forward.
Yeah, they're there as well.
Lots going on and also in the wireless portion of our business, which is predominantly for our largest customer but really.
<unk> has other drivers rather than fiber.
We think this year with the with the C band deployment of the <unk> auction deployment that we see good growth opportunities in wireless not only for our largest customer but for a couple of others that are smaller, but we are seeing growth with them.
And Steve are you anticipating that turn happens within a few of those customers within the top five right now.
Well, we certainly had two of the top five that had pretty dramatic growth not only in this quarter, but prior quarters, we expect them to.
To continue and I think there's some opportunities with others Brett.
When you have five when you disclosed two we're not going to get down to talking about specific opportunities with individual customers I'm sure our competition would like us to but but we're not going to do that.
Okay Fair enough and then any insight you can offer into the pace of the Argos funds moving to contracts and moving to execution any store that you.
Unique challenges to advancing that work or is it all kind of the typical engineering permitting preconstruction staff well the first step.
Brent that we've been following of course is the original phase one art off auction resulted in awards of about $9 billion.
We keep track of this fairly carefully theres been about $4 billion at sprint provisionally approved the final step which requires.
Letters of credit or other forms of collateral is in various stages. So it is moving but it is not fully deployed.
And as we've talked about before.
Because of the structure of <unk>, there was a substantial amount of recipients capital that was going to be needed to build out the networks and so we are working for customers.
They are highly confident theyre going to receive the art off they've already started with with engineering and some construction.
But they have not been fully approved.
Through the process. So that's working through I would say.
There are clearly the same.
At a high level factors that impact.
Deployments in Rural America, Although we've had great growth with this rural electric utility business I mean, it's.
This year it was north of $200 million in probably five years ago. It was probably south of $20 million. So so we've had some good growth there.
And good growth I expected going forward.
But nothing special about that type of work.
Relative to other work that we do.
Okay do you think that can pick up momentum as we move later into the year.
I would not limited to <unk> I think about art off is just one subset of rural initiatives.
There's a number of state programs, where actually have received some small awards.
And Virginia are one of the other state programs, we expect to see more of those opportunities as I mentioned, there are a number of smaller.
Players some investor owned some private owned that are stepping into the rural or tier three.
Market.
There is.
And I know I got the question earlier are there.
There is as much activity in the industry in terms of either enhanced needs from existing customers or potential new business as I've seen probably since the late nineties I mean that there is a lot of activity going on.
Of course, the infrastructure Act, which is about 50.
$50 billion with the required match.
Isn't even in the marketplace, yet so there's a lot going on.
Okay. Thank you Steve best of luck.
Yeah.
Yeah.
Thank you and as a reminder, if you would like to ask a question press. The Star then the one key on your Touchtone telephone. Our next question comes from Noelle Dilts with Stifel. Your line is open.
Hi, good morning, and thanks for taking my question.
A lot of put out a lot of what I was wondering if that had been answered, but I was wondering if you could.
Talk about the work Youre doing for art often in rural markets.
Are you having to make incremental investments there to support some of the planned hence or given your historical presence in rural areas not so much about initiatives. Thanks.
Yeah, Noelle I was confident you can come up with a question so.
Yes.
We've known each other a long time.
So let me let me talk about it more broadly so number one there is nothing special about an art off market compared to an electric you know rural electric utility, where we've had a long presence.
And a good portion of the country for a number of years now so there's nothing particularly special there I think one of the things that is encouraging.
And we've always got more work to do we can always do better but one of the things. That's encouraging is we're seeing opportunities with with either new customers or existing customers, where as we spread out geographically, we've been pretty disciplined about doing it in adjacent areas or in areas, where we've had historic.
We have presence for another customer so at our in our awards I talked about one customer where we picked up.
Some new work in seven states and in those seven states, we either had.
Existing business with that customer in adjacent areas in some cases.
No facilities required.
Sure we will.
We're wrapping up a program for another customer and so we were able to redeploy the existing staff and facilities over to this new opportunity and so I just think we're in a we're at a good.
Good place from a geographic.
Perspective, given the breadth of the business.
Not only in rural America, but in this case, an urban suburban America also now it doesn't mean that we're everywhere.
But it does mean that we're in enough places that if we're careful about where we commit to going to work. We can commit in those places again that increases the likelihood that we'll be successful.
Thanks that's.
Really helpful.
And then just on the wireless side, given at&t's comments on Eric.
<unk> call. They mentioned you don't really ramping in the back half of the areas that.
With with how you're thinking about.
The pace of wireless work during the year.
We're seeing wireless pick up with a number of customers.
Including AT&T that was down a little bit this quarter.
But I think it was less down this quarter than it would have been six months or a year ago. So.
We've got good good opportunities there.
Again.
Within our existing footprint, where we already have facilities, but there is there is a lot to get done in the wireless business.
Through 'twenty three 'twenty four for customers to all meet their objectives.
Objectives.
Okay. Thank you.
We have a question from Alan Medtronic with Sylvan Lake asset management. Your line is open.
Hi, Thank you Steve you talked about on the last call about a whole bunch of work that came in after the quarter I think it was 700 plus million backlog and like you said the backlog Didnt really expand so just building on Alex's question is that because other things didnt come through I'm, just wondering I'm wondering when the lift off comes as it relates to that.
Number one it was we had talked about $500 million and I think you can probably figure out who that was with we continue to have good booking activity.
And it depends what you're thinking about rate so the backlog over the next 12 months at north of $3 billion.
Is quite healthy the total backlog I mean, there's certainly plenty of opportunity out there, but again depending on.
The area in the customer arrangement it can be different and we've talked about this before in our rural electric utility business oftentimes projects are awarded in phases. So you might have.
<unk> 3000 mile project that they issued to your 300 miles at a time.
We've completed a whole bunch of those over the last several years I guess, we could go back and try to negotiate.
The entire arrangement or we could just go ahead and receive at 10% at a time, but particularly as I mentioned earlier.
We're happy doing it the way the customer would like us to particularly in a period of time. We're forward costs are probably a little bit more uncertain than they had been in the past.
If you think about it our total backlog if you look back two.
Two or three quarters ago was down.
Yet we had double digit organic growth this quarter, Joe it's correlated but its loosely correlated over short periods of time.
Okay. That's helpful. I appreciate that also on.
On the cable companies. We finally saw the announcements this quarter that some of the cable guys realize they have competition and theyre going to have to start spending on capex seeing it in your numbers I mean, I haven't seen that I had to go back years and years to see how load Comcast was in others and charter dropping out of the top five and I mean are you expect.
A cable ramp up in the next year or two given.
How fast the telcos are spending.
And then just maybe on Comcast, specifically was there something weather wise and regionally.
<unk> wise that hits, you in the quarter or two.
Well I think if you think about and I won't talk about a specific customer, but if you think about the cable industry in general.
They got hit with lots of demand in 2020, they all talked about it on their calls in terms of the network investment they had to splitting nodes.
Increased capacity in the business.
And I think so from a comp basis year over year right that that pandemic effect was certainly less of a factor.
In 'twenty one.
And it sounds like Youre following.
Following the news quite well I mean, clearly the cable industry.
Reads, what what their competitors are saying and what they're seeing in the marketplace. I do think there will be a reaction. There was there was one cable operator, who named their competitors.
By name on their call and talked about over and making sure. They had fiber to the home networks in front of those.
Two competitors, so they're taking it seriously there are different approaches to it.
Some are more technical rather than construction oriented we do that type of work, but as you make the transition from bi for construction heavy program to a technical program.
There may there may be some near to intermediate term impacts but.
Clearly from what I read and what they are saying I think as always.
They are fierce competitors. They competed for business for decades, and I'm sure they'll they'll do what they need to do.
Thanks.
Thank you and I'm showing no other questions at this time I would like to turn the call back over to Steven Nielsen for closing remarks, well, we thank everybody for your time and attention and.
And we look forward to speaking to you on our next call at the end of May. Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.
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Thank you.
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