Q4 2022 Matrix Service Co Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
[music].
Yeah.
Good day, and thank you for standing by and welcome to the Matrix Service Company Conference call to discuss results for the fourth quarter and full year fiscal 2022 at this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and.
And the answer session to ask a question during that session you will need to press star one one on your telephone.
You will then hear an automated message advising your hand hasn't been raised please be advised that today's conference is being recorded I would now like to hand, the conference over to your Speaker Kellie Smythe Senior director of Investor Relations. Please go ahead.
Thank you Carmen.
Good morning, and welcome to matrix service company's fourth quarter and fiscal 'twenty, one 'twenty two earnings call.
Participants on today's call will include John Hewitt, President and Chief Executive Officer, and Southern tapping, our Vice President and Chief Financial Officer. The presentation materials, we will be referring to during the webcast today can be found under events and presentation.
That's the relations section of Matrix service company Dot com.
Before we begin please let me remind you that on today's call. We may make various remarks about future expectations plans and prospects for matrix service company that constitute forward looking statements for the purposes of the private Securities Litigation Reform Act of 1995 actually.
Results may vary materially from those indicated by these forward looking statements as a result of various factors, including those discussed in our most recent annual report on Form 10-K and in subsequent filings made by the company with the SEC to the extent, we utilize non-GAAP measures reconciliations will be provided in various press release.
<unk> periodic SEC filings and on our website I will now turn the call over to John Hewitt, President and CEO of Matrix Service company.
Thank you Kelly and good morning, everyone and thank you for joining us I'd like to open with a brief comment on the delay in filing our 10-K as we stated in our press release on September 12, we believed the review of the Misallocated project employee hours through construction overhead would be confirmed to be immaterial and isolate.
An incident.
And that's the Companys internal controls environment would be in good shape I am pleased to report. This is the case as a result of the Companys internal controls. The issue was previously identified and corrected within the fiscal year and the investigation did not result in any additional adjustments we expect to file our 10-K early next week.
Yeah.
Beginning with the safety moment, as Florida and surrounding states recover from Hurricane and I want to thank our electrical storm response teams, who along with so many others answered the call for help to restore power as quickly as possible.
The safety of all involved remains top of mind and I encourage everyone to stay situationally aware look out for one another and following the direction provided by local authorities.
I also wanted to briefly mentioned that we will be publishing our sustainability report in mid October we have made great progress in establishing the framework we use to report on these efforts.
Our ESG strategy includes foundational principles, such as leaving positive lasting impacts on our community implementing an action plan for reducing the carbon footprint of our facilities promoting diversity equity and inclusion and maintain high standards and governance, including the adoption of the task force on climate related.
<unk> financial disclosure recommendations.
I wanted to get started by acknowledging what we all know these last couple of years for matrix have been extremely challenging however, because of the resilience of our people and based on the strength of our opportunity pipeline. The strong award cycle that is occurring the investment we have made in our resources and our organizational.
Formation.
The business is at an inflection point, where we will achieve better performance Bottomline results and long term sustainable value in today's earnings call I will briefly review the positive trends, we're seeing in our end markets and the work we've been doing to ensure that matrix is well positioned to support our clients and deliver long term value.
Over fiscal 2022, we began to see positive trends emerging from each of our core energy and industrial markets from a macro perspective. This improvement is being driven by greater focus on global energy security.
<unk> energy supply assurance supply chain security, the clean energy transition and demand for commodities supporting a low carbon economy.
And most recently the enactment of house Bill five 376, or the inflation reduction Act supporting federal infrastructure investment effective in August 2022. The Act provides 369 billion of investments to energy and climate programs with the goal to achieve 40% emissions reductions by 2000.
<unk>.
Particular importance to matrix the actual drive funding to domestic energy production manufacturing and clean energy technologies, such as hydrogen biofuel and sustainable aviation fuel.
Other programs included in the act combined with last year's infrastructure investment and jobs Act will provide for investment in industrial manufacturing facilities energy infrastructure and electric transmission projects overall, the macro trends energy demand growth our move to a lower carbon economy in federal spending.
Will positively impact matrix by clearly aligning with our strategy capabilities and growth ambitions and providing increased opportunities for project awards and improved bottom line results.
We are leaving fiscal 2022 with a few verbal awards in hand, and as contract details are finalized we expect to report a significant uptick in project backlog. For example, we are finalizing negotiations on a contract to upgrade an existing LNG peak shaving facility with new gasification and liquefaction equipment.
Additionally, another verbal award has moved to a formal contract in the first quarter of fiscal 2023 for a large scale full containment ethane tank along the Gulf coast from a longstanding clients. This award represents our largest single award since the spring of 2020.
We expect to announce both these projects by press release in the near term.
Today, the largest individual opportunities in our pipeline or in our storage and terminal solutions space, where we enjoy a long standing reputation as a leading solutions provider, especially vessel market today, where our brand is a leader is extremely active with large scale storage opportunities in LNG ammonia.
Celine ethane propane hydrogen and butane with in some cases, the terminal or a balance of plant work included.
While we will be strategic about the projects. We take on we expect that next few quarters to be very active in the storage bidding and award cycle.
With many individual project values greater than $75 million. These opportunities, we will use resources from our engineering construction and fabrication business lines and will benefit from our newly streamlined support organization.
Even with this expected near term strong award cycle, our opportunity pipeline has and will continue to strengthen month over month.
The expertise and skill sets provided by our engineering is still personnel is applicable across all the end markets. We serve and are transferable across an increasing number of clients, whose operations are vertically integrated and geographically diverse.
The services, we provide are integrated internally and interconnected throughout our client base.
Due to the application of our expertise and services and relationships with leading technology providers matrix is well positioned to support our clients' low carbon objectives, which is reflected in our current mix of project opportunities, 73% of their projects and our opportunity pipeline support our clients' objectives toward a low carbon economy. These.
Projects, including infrastructure that supports the transition to lower carbon fuels, such as LNG and natural gas renewables, including hydrogen of Biofuels low carbon chemicals, such as ammonia.
Expectation investments and the commodities that support these initiatives such as copper lithium and other mineral resources.
And the transition toward a lower carbon fuels, we continue to see project opportunities from our clients for small to midsized LNG peak shaving facilities to support utility and power infrastructure as well as terminals for LNG export and Bunkering as a replacement for diesel and fuel oil.
Midstream gas has seen more investment to support the increasing demand growth for natural gas supply is international and domestic markets look to the U S. For LNG. This demand is driving opportunities for greenfield construction natural gas processing facilities as well as expansion of existing facilities is also leading to the upgraded facility.
To improve efficiency and achieve carbon footprint reductions. Many of these projects are supported by federal tax credits.
And no our low carbon infrastructure, we believe the world is on the cusp of substantial investments in hydrogen that we expect to drive fundamental change across the energy industry matrix will play a major role in this evolution as demonstrated by the significant project opportunities we see in hydrogen recognizing this coming wave in addition to our long.
Standing expertise and leadership position in cryogenic infrastructure, we have continued to strengthen our position through investments in both people and relationships, including chart technologies and the hydrogen Council.
Most recently supported by our office in South Korea, We signed an Mou with Korea Gas Corporation or co gas South Korea is public natural gas company. This Mou is for the development of new technology for onshore large scale liquid hydrogen storage to support South Korea has plans to achieve carbon neutrality by 2000.
<unk>. This technology development activity can be further levered to support hygiene initiatives anywhere in the world as demand for the development of large scale hydrogen storage continues to grow to support power generation and transportation fueling.
Domestically achieving low carbon economy is dependent upon massive infrastructure investments being made to upgrade inefficient aging electrical infrastructure address the interconnect world of electrical and renewable generation and ensure reliable and adequate power availability.
This creates significant growth potential for our electrical business is currently operating in the northeast, Ohio Valley in mid Atlantic, which delivered nearly 20% of the company's revenue in fiscal 2022.
We expect to see an increase in project opportunities as our public and private utility customers take advantage of tax credits and other opportunities offered by the previously mentioned federal infrastructure legislation currently our contractor of choice position and existing electrical business continues to be a reliable source of revenue for matrix as utility substage.
Can work shifts from new Substations at major rebuilds to equipment control technology upgrades and security protections. We also continue to pursue larger opportunities expanding our work in electrical transmission and distribution electrical services and other energy applications that support industrial facilities, our work for talent energy.
Cumulus data is one such example matrix teams are currently at work on our Greenfield construction of a substation as well as transmission and distribution to support <unk> investment. This center is used for data storage in crypto currency processing and is powered by a nearby nuclear facility, which provides reliable carbon free energy.
As technology adoption grows and the demand for energy increases to support data storage and processing activities. We expect these types of industrial projects to increase.
Long term, we remain strategically focused on growing our electrical business in size resources and footprint, which is further supported by the U S infrastructure demand low.
The low carbon chemicals like ammonia also have a role to play in the clean energy transition as well as having to address food scarcity is as a feedstock for fertilizer. This would also an area where we're seeing significant increase in storage projects. Many of which we are currently bidding in the mining and mineral sector global demand for elements such as <unk>.
Or in lithium and rare Earth metals is increasing in direct response to the energy transition and infrastructure investment and is expected to continue following the recent enactment of HR at $53 76.
As a well established in respect to contracted at this end market, we are seeing and expect to see increasing opportunities here, where we can apply our traditional construction capabilities.
We are currently working with <unk> advanced materials on the first phase of construction at this facility in Southern California. This facility, which will be followed in subsequent phases with a large scale boron in lithium complex is home to one of the largest known new conventional boron deposits globally and the first new U S based source of for our production.
And more than 50 years or and as you may know is used in several critical applications that support electrical transportation clean energy food scarcity and domestic supply chain security.
As a reminder, in thermal vacuum chambers, our niche position is supported by our extensive specialty vessel cryogenic and steel plate structures experienced reinforced through our relationships with key technology provider Diamondback. This relationship continues to create opportunities for new construction like our two recently announced projects with Northrop Grumman.
The use of satellites to monitor and track the effects of climate change increased demand for data communications and an aging space based communication infrastructure are all reasons, we expect to see continued spending on new and existing thermal vacuum chambers.
Finally, and traditional energy markets storage opportunities in Ngls, such as ethane and ethylene have increased significantly for their benefit as chemical feedstocks to support high domestic demand and growing export volumes the global need for propane and butane is also increasing creating further demand for our storage solutions services.
With strong relationships inside several north American refineries, we benefit from our embedded position, providing turnaround and other plant services, including maintenance and repair.
As well as small capital project work for new investments and de carbonization projects and retrofitting facilities to meet increasing demand for alternative fuels.
Turn the call over to Kevin excuse me.
I want to briefly comment on our award performance during the quarter and share a couple of data points to underscore the momentum in our business.
The fourth quarter completed a year long trend of significant project award activity up 85% from last year to $835 million.
As a result, our backlog has increased 27% over the year. In addition, the quality and size of project opportunities in our pipeline support our key market strategies and competencies as well as the prospects of returning to historical margins and now let me hand, the call over to Kevin to discuss our results.
Thanks, John I'll start with consolidated results.
Revenue in the fourth quarter of fiscal 2022 was $201 million, an increase of $24 million or 13% compared to the third quarter revenue of $177 million.
Gross profit was $9 million in the quarter or 4% as our margins continued to be impacted by the execution of projects won in a highly competitive market.
We expect to complete most of these projects by the end of the calendar year.
In addition, while our revenue volume improved it is still not high enough to fully recover overheads.
Which negatively impacted gross margins by over 300 basis points in the quarter. This under recovery is primarily related to our capital construction businesses as we balanced the overhead cost structure with the anticipated future increased revenue volumes. We believe this investment is appropriate based upon our increasing backlog.
And project opportunity funnel.
On a segment basis, the storage and terminal solutions segment had revenue of $60 million, which was a 24% increase over the third quarter driven by construction on previously awarded LNG and renewables storage projects the.
Gross margin was <unk>, 8% for the quarter overhead recovery improved during the quarter on higher revenue, but still impacted margins by 360 basis points as compared to 740 basis points in the third quarter.
In addition margins were impacted by the mix of work that includes smaller competitively priced capital projects.
And the process and industrial facilities segment revenue increased 33% to $92 million as compared to the third quarter.
Increased refinery maintenance activity was the primary driver for the quarterly increase as refinery maintenance and turnaround activity has returned to pre pandemic levels.
The quarter gross margin was two 8% as margin was impacted by over 400 basis points due to an increase in forecasted cost to complete a midstream gas processing project.
The increase in forecasted costs was primarily due to the poor performance of the.
Now I'll terminated subcontractor Contra excuse me subcontractor, which required rework as well as supply chain and escalation issues in order to meet our client expectations.
In addition margins were impacted by a higher percentage of Reimbursable work related to the increased maintenance activity.
And the utility and power infrastructure segment revenue decreased 18% to $49 million as compared to $59 million in the third quarter the revenue.
Decline relates to the near completion on two LNG peak shaving projects, which have not been placed now been replaced in the near term the quarter gross margin of a negative three 1% reflects the impact of increased forecasted cost to complete one of these projects, which is now in startup and commissioning.
<unk> as well as work on other projects that we bid competitively. In addition under recovered overheads impacted gross margin by over 400 basis points.
SG&A of $18 1 million was slightly higher than expected as we recorded a bad debt charge of <unk> 7 million in the fourth quarter.
We also incurred restructuring cost of <unk> $9 million in the quarter.
Other income was $31 9 million and was primarily associated with a facility sale.
To take advantage of an elevated real estate market valuation and our current tax position, we sold our fabrication and regional office facility located in Orange, California in the fourth quarter for net proceeds of $37 4 million.
The gain related to the sale was $32 4 million and resulted in minimal cash tax expense as a result of our current tax position, we remain fully committed to our operations in southern California.
And as such have entered into a leaseback agreement with the buyer for a period up to 24 months, while we locate replacement facilities.
For the three months ended June 32022, we had net income of $13 5 million or <unk> 50 per fully diluted share excluding the gain from the asset sale and other quarterly tax adjustments. The adjusted net loss for the quarter was $13 8 million, resulting in an adjusted loss per share of <unk> 52.
As we discussed last quarter, the company's earnings have been impacted by three primary issues throughout fiscal 2022.
First the competitive environment. The last couple of years has resulted in a temporary reduction in the mark in the margin opportunity of awarded work as John discussed project opportunities are improving which should result in overall improved margin opportunity within our portfolio.
We expect to see continual improvement in gross margins as we progress through fiscal 2023, returning to our historical consolidated double digit margins by the end of the fiscal year.
Second our revenue volume has not been sufficient to fully recover construction overhead.
Which has negatively impacted gross margins.
While we have significantly reduced our overhead cost structure, we have maintained an adequate level to support the project opportunities in our funnel.
Each will drive increased revenue. This investment is important to the future success and performance of the company.
Our revenue resulted in improved overhead recovery and the recently completed quarter and we expect that trend to continue as we move through fiscal 2023 as a result of the improved market opportunities that should generate higher revenue volume in the second half of fiscal 2023.
Third we incurred increased forecasted costs on certain projects during fiscal 2022.
These projects were competitively won and then executed during a very difficult environment created by the pandemic and its resulting disruption to supply chain and other business conditions. These projects are now completed or will be completed in early fiscal 2023.
Based on the current market trends, we expect each of these three issues to improve and drive our return to a higher revenue volume higher gross margins and profitable operation operating results in fiscal 2023.
Moving onto the balance sheet and cash flow.
During the quarter cash increased $18 million to $77 million at June 30.
The company generated almost $39 million from asset sales and also borrowed $15 million under its credit facility.
These increases were offset by 12 million used to fund the quarterly operating loss and $21 million invested in working capital.
The increase in working capital relates to the 13% quarterly revenue growth, which was driven by a higher volume of Reimbursable projects.
Regarding liquidity as of the end of the quarter. The borrowing base of the credit facility is $81 million and availability is 43 million combined with unrestricted cash of $52 million, the company's liquidity of $95 million, which is sufficient to support our needs.
I'll now turn the call back over to John .
Thanks, Kevin.
In the year, we committed to the investment in our people to support the market trends in front of us even when it affected our ability to recover all our overheads. This investment which is primarily related to our forward view of the storage solutions opportunity set will pay off in the quarters to come with improving backlog revenue and operating results our focus on quality.
Safety people and communication will continue to be critical to the success of the business. We remain focused on our core strengths in markets and a levering our consolidated business development services to build backlog grow the business and expand our brand across our client portfolio in fiscal 2022, we began an organizational transformation journey.
That is improving our cost structure competitive position and quality of services.
Besides an enterprise wide shared services platform. Our organizational transformation includes the creation of our center of excellence to ultimately provide consolidated enterprise wide expertise and key disciplines like quality safety procurement project management estimating and project controls. These changes will improve the gaps.
<unk> and some of the company's project outcomes as well as overall project execution capabilities and quality of project and service delivery across the enterprise.
As we continue to standardize our processes and build further discipline into the organization around these processes, we will build our culture of quality and performance with the same emphasis is safety.
These changes will result in increased efficiency continuous improvement in our performance better outcomes for our clients delivering on our growth objectives more consistent bottom line results and achievement of long term sustainability for all of our stakeholders with that I will now open the call for questions.
Thank you and as a reminder to ask a question simply press Star one one on your telephone one woman one we compile the Q&A roster.
Our first question comes from the line of Gene <unk> with D. A Davidson. Please go ahead.
Good morning, This is John Muse for Brent Thielman.
Good morning, good morning.
My first question.
What size or magnitude of a potential bookings opportunities are you seeing or.
Or are they more than $50 million or $100 million opportunities.
Perfect opportunity I think but there is a.
We've got a pretty wide mix and I would say.
The center of the project our project capital opportunities are in the 50 to 150 kind of range.
There are a few projects that are larger than that but I think this kind of a sweet spot on the projects that we're looking at are in that range.
Yes.
Thank you.
Just a follow up.
So on margin to what extent is the inflationary environment impacting margins versus still some overhead absorptions to go and competitively bid projects in general.
Yes, so inflation is definitely an impact on on margins.
How significant.
I can't really.
Give a good estimate on that it's definitely a piece of it I would say that the.
The overhead recovery issue has been pretty significant thats, probably been close to half of the issue on on margins.
And we saw some improvement in fourth quarter.
With the increased revenue and I would expect that to continue.
Thank you.
<unk>.
Just.
One more.
Are there any.
Other updates on the Hudson business and potential opportunities here for that.
Next fiscal year or perhaps any.
Coming sooner than that.
No.
Yes.
Ryan This is part of our strategic focus and our storage business.
Our ability to.
Two.
Design and execute cryogenic, especially vessel storage.
As a as a foundational skill set in the business hydrogen fits into that and so I think where we see the hydrogen market going as soon as there is an increased demand for hydrogen in.
The energy mix.
The size of the storage has got to be is got to be upscale.
And so there is a.
I think we've seen a lot of energy and utility clients looking out into the industry at industry storage experts on developing.
Storage capabilities that can be 10 to 20 times the size of what traditional storage is today and so that's the.
Genesis of the of the cocoa gas discussion.
And there are other energy clients out there with the same related questions and thought processes of how they might invest.
And development of that technology and that storage.
Great. Thank you I appreciate that so much I'll hop back into queue.
Thank you one moment for our next question.
Our next question is from John transfer with Sidoti. Please go ahead.
Hi, guys. Thanks for taking the questions.
Can we just start with a quick review of the fourth quarter and how much of the revenue.
That matter of the backlog.
Still associated with competitive pricing projects, so that largely unprofitable.
Let me do a little math here real quick.
So.
It's not a large percentage of the.
Of the overall revenue, it's just that the impact that they've had been pretty significant.
We've had quite a few project awards with an average <unk>.
Somewhere around 200.
Sure.
A quarter of project Awards recently, and I think we've seen the.
Margin profile.
Alright.
Combined basis, each quarter kind of improve a little bit each quarter and theres definitely projects within that.
Those awards that are in our historical margins and there is some.
Still arent in some select markets, but for the most part it's moving back.
We are seeing.
Mike Consolidated award margin profile.
That's closer to.
At 9% on average margin versus what we were seeing.
During the pandemic that was much lower.
Now I think as far as the projects that.
We've had issues on in fiscal 'twenty two.
There is not a lot of revenue left on those.
They are in the final stages for the most part.
And.
Those will be completed here in the first quarter in the second quarter, but it's not as higher revenue volume as it was in the prior year.
So so Kevin are you, suggesting that if we kind of strip out.
<unk>.
Older less profitable projects.
That.
For Q.
<unk> will be in a high single digit range.
I am suggesting that if I strip out the.
The couple of projects, we talked about that and the competitively priced projects.
The direct margin on those on the rest of the work is that beyond the higher single digits.
Of course, we installed low overhead recovery issue right.
But the direct margins on those projects in that in that range, yes.
Okay, and the overhead recovery if I heard correctly is largely associated with your expectations in the storage business can.
Can you can you talk a little bit more can you give us some color about what's going on in storage that gives you some optimism that's worth.
Or are those people.
Yes so.
It's related first of all it's related to the guests in the storage business, where we have a.
A lot of large capital projects, but it's also impacted the other segments also.
Probably storage number one secondly would be the utility and power infrastructure segments.
And then there's still been some impact in the process and industrial facilities segment, but because it's primarily the more of a service work we.
We haven't had as big of an impact there.
Now as far as storage itself I'll, let John Yes, I mean, the storage the storage market and really.
We are.
Not executing.
<unk> bidding a significant amount of crude related new storage.
Our tank maintenance and repair business.
Which traditionally does quite a quite a bit of work in <unk>.
In the crude oil tank.
Tank repair and maintenance.
<unk> has been pretty busy but as it relates to new storage.
It's mostly around either LNG tanks associated with larger project or wrapped into an overall project, some kind of peak shaving or or a small scale export.
<unk> seen a lot of activity in.
<unk> tanks.
We noted the recent award of a large scale ethane tank in the in the Gulf Coast, a lot of activity, there and a lot of activity in large scale ammonia tanks.
Again used as either.
As a feedstock for fertilizer or for export and global markets.
And Dan and as a potential carrier for hydrogen.
So it's there's been a there's been a significant uptick over the last six months.
In storage related projects, even even without the balance of plant work to go with it and in some cases that is included and.
And those projects worth they're coming to award here.
Several of them over the next couple of months, so pretty excited about where that market is and you know thats always been a great driver foundational driver for our business.
Okay.
That's good news.
And actually Jon I'm actually curious about your assessment of what's going on utility market. I know that you had two large projects wind down book to Bill I think the quarter was.
Seven.
Can you give us your overview of how that market plays out in the next year and what's driving it one way or the other.
Yes.
Our utility segment to be clear as a mix of electrical infrastructure pure infrastructure work that we do.
Substation and transmission distribution those kinds of things and then the.
LNG peak shaving.
And so we think which we have had expected there was going to be.
There was sort of a pause on new awards over the period of the pandemic, but we're seeing a return.
From several utility clients.
Looking to put contracts in place for new peak shaving facilities.
And so several of those that we've prequalified for that we expect to be bidding on here over the next couple of months for award in our third and fourth quarter and.
So continue to be a lot of activity around just our LNG for peak shaving for utility clients.
And also.
Repair and upgrades to existing facilities.
There is still.
And a high of 100.
LNG peak shaving storage facilities for utility clients across the country and most of them were built in the Seventy's and Eighty's.
And so while those projects and another sales are not real big projects, but there is.
A lot of feed work engineering maintenance repair work.
Associated with those that were starting to pick up.
Okay, perfect and I guess just one other question just for clarity you talked about the project profile, suggesting that a return to profitability in 2023, I'm, assuming you mean on a quarterly basis in the second half of the year not so much on a full year basis is that a fair assessment.
Yes, I think that when you look at it.
We'll see.
It results in the first first couple of quarters be a little bit better than or better than we've seen in the last two quarters.
Because those projects are nearing completion the.
The revenue volume will still be.
Kind of running with a $70 million a month range and so I don't think that we will see a big step change in revenue in the first half of the year, but I do think we'll see.
Margins improve.
But when we returned to profitability, it's probably not not there in the first half of the year, there's a chance it gets there in the third quarter.
We will start to see higher revenue volume in the third quarter and then the fourth quarters I see it I see it returning to profitability.
And so for the full year.
It may even out to be somewhere around breakeven and maybe.
Some profit is what we are open to get to.
But definitely a big improvement over fiscal 'twenty.
'twenty two.
Okay, that's great hopefully thanks, Kevin Thanks, Ken.
Welcome.
Our next question please.
We have a follow up from Jim <unk> with da Davidson.
Okay. Thank you.
So from everything that we talked about the environment.
It sounds pretty healthy for you.
Is there potential for you guys to get up.
Up to $1 billion plus in backlog.
Over the next four quarters or couple of years and if so.
What kind of runway are you seeing right now and what rate do you think youll get to there. Thank you.
I think we we believe there is the potential to exit the year.
If not sooner with a backlog at that kind of level.
Based on what we're seeing in our opportunity pipeline.
Wide variety of projects across all of our segments.
Yes.
And by the year you mean.
2022 or fiscal year 'twenty three.
Fiscal 'twenty three.
Thank you I appreciate it.
Alright.
Going to the Q&A session for today I'll turn it back to John Hewitt for final remarks.
Thank you, yes, I want to thank all of our employees in all of our stakeholders for your continued commitment and support of matrix Service company.
Wish everybody to be safe.
For the weekend and we look forward to talking to all of you. Soon so thank you for joining us today.
And with that we conclude today's conference call. Thank you for participating and you may now disconnect. Good day.
The conference will begin shortly.
As Johan during Q&A, you can dial one one.
[music].
Sure.
Yes.
[music].
Yes.
Yes.
[music].
Yes.
Okay.
[music].
Yes.
[music].
Sure.
[music].
The conference will begin shortly.
To raise your hand during Q&A you can dial star one one.
[music].
Hum.
Sure.
Yes.
Okay.
[music].
Yes.
Sure.
Yes.
[music].
Okay.
[music].
Yes.
Yes.
[music].
So.
Okay.
[music].
Okay.
[music].
Okay.
Yes.
Yes.
Okay.
Yes.
[music].
Okay.
Yes.
Yes.
Yes.
[music].
Yes.
Yes.
Okay.
Thanks.
[music].
Sure.
Okay.
Okay.
Okay.
Yes.
Sure.
[music].
Okay.
[music].
Okay.
Yes.
Yeah.
Yes.
[music].
Yes.
[music].
Yes.
Sure.
Okay.
Sure.
Yes.
Sure.
Okay.
Sure.
Okay.
Yes.
[music].
Yes.
[music].
Sure.
Okay.
Sure.
Okay.
Sure.
Yes.
[music].
Okay.
Sure.
Yes.
Okay.
Sure.
Yes.
Okay.
Yes.
Yes.
Okay.
[music].
Okay.
Okay.
Yes.
[music].
Okay.
[music].
Yes.
Yes.
[music].
Okay.
Okay.
Sure.
Okay.
[music].
Okay.
Sure.
Sure.
Yes.
Sure.
Okay.
Okay.
[music].
Yes.
Yes.
Okay.
Okay.
Thanks.
Okay.
Yes.
Okay.
[music].
Yes.
Yes.
[music].
Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
[music].
Okay.
Yes.
Okay.
Yes.
Sure.
Yes.
[music].
Yes.
Okay.
Yes.
Yes.
Yes.
Sure.
Sure.
Yes.
Thanks.
Thanks.
Thank you.
Yes.
Okay.
Yes.
Sure.
Yes.
Sure.
Yes.
Okay.
Yes.
Okay.
Yes.
Sure.
[music].
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Yes.
Yes.
Yes.
Thank you.
Yes.
Yes.
Yes.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Okay.
Sure.
[music].
Okay.
Sure.
[music].
Yes.
Sure.
Yes.
[music].
Yes.
[music].
Yeah.
Okay.
Sure.
Yes.
Okay.
Yes.
Yes.
Thanks.
Yes.
Okay.
Yes.
Okay.
[music].
Okay.
Yes.
Okay.
Yes.
Okay.
[music].
Yes.
Yes.
Yes.
Okay.
Yes.
Yes.
Okay.
Okay.
[music].
Sure.
Okay.
Yes.
Okay.
Sure.
Okay.
Okay.
Yes.
Yes.
Yes.
[music].
Sure.
Okay.
Yes.
Yes.
Okay.
[music].
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
[music].