Q4 2022 Babcock & Wilcox Enterprises Inc Earnings Call
Speaker 1: Hello everyone and welcome to the Babcock & Wilcox Q4 and full year 2022 earnings conference call. My name is Emily and I'll be coordinating your call today. After the presentation you will have the opportunity to ask any questions by pressing start followed by the number 1 on your telephone keypads. I'll now turn the call over to our host Sharon Brooks, Director of Communications.
Speaker 2: Please go ahead.
Speaker 3: Thank you, Emily, and thanks to everyone for joining us on Babcock and Wilcox Enterprises fourth quarter and full year 2022 earnings conference call. I'm Sharon Brooks, Director of Communications. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer, and Lou Salomone, Chief Financial Officer, to discuss our fourth quarter and full year.
Speaker 3: a report on Form 10-K that will be filed with the SEC tomorrow, March 16, 2023, after the close of the market. Additionally, except as required by law, we undertake no obligation to update any forward-looking statements.
Speaker 3: We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures
Speaker 3: can be found in our fourth quarter and full year earnings release published this morning and in our company overview presentation filed on Form 8K this morning and posted on the investor relations section of our website at babcock.com. I will now turn the call over to Kenny.
Speaker 4: Thanks, Sharon. Thanks, operator. Good morning, everyone. Thanks for joining our fourth quarter and full year 2022 earnings call.
Speaker 4: We had a very strong quarter for Babcock and Wilcox and generated backlog and new opportunities to position us to reach our 2023 EBITDA targets. We increased our pipeline of opportunities, especially around our clean energy technologies and renewable and environmental, as well as expanding opportunities with our bright blue hydrogen production.
Speaker 4: year of 2022.
Speaker 4: Revenues in the fourth quarter increased 30% compared to 2021, and our quarterly bookings were 197 million, which were in line with our strong fourth quarter bookings in the prior year.
Speaker 4: Our year-over-year results for 2022 were just as significant. Revenues for the year increased 23% and our annual bookings of 908 million set a new record high since 2017.
Speaker 4: In addition, we booked seven renewable waste energy new build projects in 2022 and announced several agreements with a number of leading companies to further augment our market applications of Brightloop, Solbright, and OxiBright technologies.
Speaker 4: Although our performance for the year was impacted by global supply chain and market conditions, we continue to execute and progress against our long-term strategic growth strategy with an expanded pipeline of $8 billion in quality projects and an ending backlog of $704 million, a 19% increase in global supply chain growth strategy.
Speaker 4: coupled with significant backlog and booking momentum, which reinforces our conviction for an improved full year performance and continued growth throughout the year.
Speaker 4: Given our current visibility for new booking opportunities, we reiterate our 2023 full year adjusted EBITDA target of $100 to $120 million.
Speaker 4: While industry challenges and negative impacts of the global supply chain pressures still remain, we have implemented several strategic initiatives to mitigate these headwinds where possible. In recent quarters, we have worked to expand the qualification of alternative suppliers and modify risks.
Speaker 4: are sourcing strategies to limit the impact that industry-wide bottlenecks have had with respect to availability of raw materials, fabrication capabilities, and labor shortages, among a broad range of other factors.
Speaker 4: While we continue to evaluate where further improvements in our supply chain can be implemented, we are proud of our team's ability to react proactively to the present global and regional challenges while maintaining the highest level of operational performance.
Speaker 4: Our focus on providing customers with the technologies and services necessary to meet their growing demands for thermal base flow generation and clean energy solutions remain our top priority.
Speaker 4: In the fourth quarter, we also announced two significant contract awards in our environmental segment, which
Speaker 4: serves as a testament to our customers' confidence in our mission control and ash handling technologies.
Speaker 4: The first contract, valued at over $24 million, included the supply of two industrial package boilers, auxiliary equipment, and advanced emission control technologies for a petroleum refinery in North America. Under that same contract, BMW Environmental will supply two Select Catalytic Reduction Systems, FTRs, to control nitrogen.
Speaker 4: and ensuring compliance with emission requirements.
Speaker 4: B&W Environmental will design, manufacture, and supply four state-of-the-art Allen Sherman off submerged grind conveyors or SGC systems.
Speaker 4: that are designed to meet a fluent limitation guidelines, ELG and other coal combustion residuals requirements and also supply tube conveyors for the project.
Speaker 4: These contract awards follow two very instrumental announcements we made last quarter, including a $43 million contract to provide construction and installation services for an environmental upgrade project here in the U.S. in addition to a contract award to study the application of B&W Solvrite solvent-based-
Speaker 4: and renewable and one-third thermal.
Speaker 4: In addition, we just recently announced this year a $65 million contract to provide renewable waste to energy and environmental technologies to low-stock sustainable energy plant in the United Kingdom. For more information, visit www.fema.gov
Speaker 4: This is one of the largest waste energy plants in the UK and reflects strongly on our relationships with Copenhagen infrastructure partners and FCC Environmental Services.
Speaker 4: With respect to the supportive industry legislation that has been passed, we are excited to announce that we are collaborating with customers and partners to pursue a number of advanced clean energy projects and opportunities that will be made possible through the funding provided by the historic $1.7 trillion spending package recently signed by President Biden.
Speaker 4: The appropriations packages contain historic funding for clean energy projects, including opportunities for hydrogen generation, carbon capture, renewable energy, and methane mitigation, demonstrations that would potentially benefit from B&W's advanced clean energy solutions.
Speaker 4: The spending package includes specific appropriations language that directs the Department of Energy to support commercial demonstration of hydrogen production using chemical looping utilizing coal, biomass or natural gas.
Speaker 4: This is a significant accomplishment in development, and we look forward to advancing our discussions with customers, partners, and representatives from the U.S. Department of Energy to explore ways in which we can accelerate the clean energy transition and provide essential innovative technologies for those projects.
Speaker 4: B&W has a diverse suite of renewable energy, environmental, and decarbonization technologies that are proven and ready to deploy, including hydrogen, CO2 capture, decarbonization, methane abatement, renewable energy, and emission controls.
Speaker 4: Our commitment to further drive sustainability is reinforced by our recently announced collaboration with Chart Industries to evaluate innovative application utilizing our Bright Loop technology in the global alliance with Fidelis to produce clean zero carbon intensity hydrogen.
Speaker 4: Through the collaboration with Chart Industries, B&W will further deploy its Bright Loop hydrogen technology, utilizing Chart's hydrogen liquefaction and carbon capture equipment. The partnership aims to provide low-carbon hydrogen generation and cost-effective transportable forms of liquid hydrogen and carbon dioxide.
Speaker 4: while developing sales and marketing strategies for potential commercial customers. We are excited to partner with Chart Industry and look forward to advancing the scalability and innovative applications our Brightloop technology has to offer.
Speaker 4: The global alliance with Fidelity focuses on the production of clean hydrogen using B&W's bubbling fluidized bed boiler technology and Fidelis proprietary Fidelis H2 technologies.
Speaker 4: The partnership aims to produce zero carbon intensity hydrogen from natural gas that meets the required threshold under the Inflation Reduction Act to qualify for the full $3 per kilogram 45B hydrogen production tax credit.
Speaker 4: We look forward to deploying these technologies at scale and further developing our suite of carbon capture solutions, ultimately leveraging our Climate Bright decarbonization platform and supportive industry legislation to further diversify our environmental and renewable business.
Speaker 4: I'll now turn the call over to Lou to discuss the financial details of the fourth quarter and the full year 2022. Lou? Thanks Kenny. First I'll review our full year 2022 results, and then I'm going to turn over to our fourth quarter 2022 results. For further detail, I call your attention to the fact that we will file our 10k...
Speaker 5: with the SEC tomorrow, March 16th, after the close of the market, and you can refer to it for further details beyond what we discuss here in this call today.
Speaker 5: Our consolidated revenues for 2022 were 889 million, almost 889 million point eight. And as Kenny mentioned, that's a 23% improvement compared to 2021.
Speaker 5: The improvement was primarily due to a higher level of activity in our renewable and environmental segments and our expanded geographic presence and the improved strategies to mitigate the continued impact of COVID-19, as well as acquisitions we closed in the second half of 2021.
Speaker 5: The net loss in 2022 was $26.6 million compared to net income of $31.5 million in 2021, which included non-cash items, which 21 included non-cash items of approximately $31.1 million, which were primarily related to non-cash items with respect to income tax benefits and mark-to-market pension benefits.
Speaker 5: GAAP operating loss in 2022 was a $4.2 million compared to an operating income of $20.8 million in 2021.
Speaker 5: We achieved our revised 2022 Adjusted EBITDA target of more than 70 million with an Adjusted EBITDA reaching 72.4 million as compared to 70.6 million in 2021.
Speaker 5: Total bookings in 2022 were $908 million, a 17% increase compared to full year bookings in 2021.
Speaker 5: This is the highest level of annual bookings since 2017.
Speaker 5: Backlog at December 31, 2022 was $704 million, and this is a 19% increase compared to the prior year end.
Speaker 5: backlog at December 31, 2022 was $704 million, and this is a 19% increase compared to the prior year end. Now I'll turn it over to our fourth quarter results.
Speaker 5: Fourth quarter consolidated results revenues were $249.9 million. That's a 30% improvement compared to the fourth quarter of 2021.
Speaker 5: This improvement was primarily attributed to higher overall volumes and previously completed acquisitions, while it was partially offset by a lower level of construction activity in our thermal segment.
Speaker 5: Net income for the fourth quarter was $5.7 million compared to net income of $30.2 million in the fourth quarter of 2021. Again, this is primarily related to non-cash items including a $15.2 million tax benefit and a $17.8 million positive mark-to-market adjustment in our benefit plans.
Speaker 5: Our GAAP operating income in the fourth quarter was $9.3 million compared to an operating income of $9.7 million in the fourth quarter of 2021. Adjusted EBITDA was $26.7 million in the quarter compared to $27.8 million in the 2021 quarter.
Speaker 5: Bookings in the fourth quarter of 2022 were $197 million, which is in line with the strong bookings of the fourth quarter of the comparable 2021 period.
Speaker 5: I'll now turn to Cash Flow, our balance sheet, and our liquidity.
Speaker 5: Our cash flow from operations in the fourth quarter of 2022 was a source of cash of 36.8 million. We ended the year with total debt of $353 million and a combined cash equivalent and restricted cash balances of over $113.5 million.
Speaker 5: Our strong results for the fourth quarter were propelled by continued execution of our growth strategy and drove us to achieve our adjusted EBITDA target of more than $70 million for the full year 2022. We booked seven sizable renewable waste to energy projects in 2022 contributing again, as I said, to the
Speaker 5: to the highest level of our annual bookings since 2017. We expect 2024's quarterly profile to follow our normal cyclical performance of increasing profitability from the first through the fourth quarter. And again, as Kenny had highlighted, we're reiterating our 2023 target.
Speaker 5: of $100 million to $120 million of adjusted EBITDA. This is supported by a robust pipeline of more than $8 billion of opportunities through 2024 and a $704 million backlog at the end of 2022. The backlog is a 19% improvement over the prior year.
Speaker 5: shows the accelerating momentum of our strategic actions.
Speaker 5: I'll now turn the call back over to Kenny.
Speaker 4: Lou, thanks.
Speaker 4: Well in closing, the past year has been one of tremendous growth and progress for B&W despite all of the macro headwinds and ongoing supply chain disruptions.
Speaker 4: Notably, we have seen continued success across the multiple key fronts, including achieving a record level of annual bookings since 2017.
Speaker 4: top-line annual revenue improvement year-over-year, and improved outlook for adjusted EBITDA growth in 2023, demonstrating the effectiveness of our strategic initiatives and the strength of our world-class team of operators. Looking ahead, we remain excited about the prospects stemming.
Speaker 4: from a robust pipeline of more than $8 billion of global identified projects and upgrade opportunities, driving profitable multi-year growth and enhancing shareholder value. Our deep industry expertise with clean energy and carbon capture technologies coupled with our experience in traditional energy sources gives us a unique advantage in delivering sustainable solutions to our country.
Speaker 4: employees and customers and shareholders and partners for their continued support and confidence in our company. We remain steadfast in our commitment to becoming a front runner in the global energy transition and look forward to building on our successes in the years ahead. Together we continue to drive strong, profitable growth and create a better world.
Speaker 1: please do so now by pressing start followed by the number one on your telephone keypad. If you change your mind or you feel like your question has already been asked, please press start followed by two to remove yourself from the queue. When preparing to ask your question, please ensure that your device and your microphone are unmuted locally.
Speaker 6: The first question today comes from Aaron Spichala with Craig Hallam. Aaron please go ahead. Good morning Kenny and Lou, thanks for taking the questions. You know maybe first on waste to energy, you know good to see the Low Stock Award to start 2023. Can you just maybe talk about the pipeline there, you know how it's trending and then supply chain and timelines on the current project just.
Speaker 4: just how that compares to your expectations back in October . Yeah, so the Low Stock obviously was a great announcement. We were hoping to get that one in before the end of the calendar year 2022, but it took a few extra days to get that complete. But excited about that and...
Speaker 4: I would say the exciting part about that project right now is that there could be opportunities to expand, more scope depending on certain activities and other things that may be developing down the road. So we're truly excited about that and also reflect strongly, as I mentioned in my remarks, on our relationship with the project.
Speaker 4: of other opportunities that we are working on. Some hopefully would be announcements this year. Some that would be, we're working dozily on that would be announced next year. This is all in waste to energy around that segment. And we're continuing to expand some of the royalty capabilities. We talk about it a little bit here and there, but.
Speaker 4: where we're licensing our waste energy technology in Asia, especially in China, in India, and we're seeing some growth come out of those segments as well too, and we anticipate seeing more here in 2023 and 24. So the pipeline is strong overall, and we continue to see advancements.
Speaker 4: And we're seeing a pipeline starting to increase on specifically around those combined technologies because of the IRA advancements here in the US.
Speaker 4: From a supply chain perspective, what we talked about on the call, we don't see anything that's significantly improved in supply chain. What we've done is just basically taken the approach, like we mentioned last year, and looking at our projections this year and going into next year, is saying we're living in this era of this current supply chain aspect. So things...
Speaker 4: that normally would have taken a few months to bring on or getting access to steel inside 90 days now takes six months. So as we look at how we negotiate contracts, as we look at how we look at revenue and forecasts going forward, we tried our best to incorporate all of those standard supply chain issues to make it just part of our normal business expectation.
Speaker 4: we're not assuming it does as it relates to our numbers and projections for 23.
Speaker 6: Understood. Thanks for the caller. And then you mentioned language on commercial demonstration for chemical looping in the legislation. Can you just talk a little bit about what funding might look like there, anything on timing for deployment, and then any update to just the broad kind of 30-plus pipeline of kind of climate-bright as those things are progressing? Yeah, so we're excited about the appropriations language that was...
Speaker 4: We worked obviously a lot with legislation and Ohio State legislation and other federal senators to support that language on both sides of the aisle. So we had support from the Republican side and the Democratic side of the aisle to get that language in the DOE. So we're working with them now. yeah and hashtag
Speaker 4: it's clearly there to help support the demonstration, and we're working with a number of groups within the DOE to bring that to fruition. At some point in time, that will happen. And the DOE's excited about our program and others. Anytime you're working with the government, things just take a little bit longer.
Speaker 4: than you would hope in life. But we're excited to have it there. We look forward to working with them. On the commercial efforts, things are continuing to progress. We talk a lot about the couple opportunities I think we put out publicly on the potential in the project in Louisiana and the potential in our...
Speaker 4: to create hydrogen and isolate and capture the CO2 associated with that. We haven't talked publicly too much about the fact that we also produce nitrogen as it relates to the process and we're able to capture that nitrogen. We've been in discussions with a few companies around the potential use of the nitrogen in conjunction with the use of CO2.
Speaker 4: larger opportunities.
Speaker 4: around Brightloop and that would be the natural part of the progression for that and we're seeing that unfold. So we're bullish on where it's going and we definitely clearly see the upside and I think as we get more and more out in the marketplace and as we work with companies like Chart, Dallis and others to expand our.
Speaker 6: That's good to hear. We'll stay tuned. Thanks for taking the questions.
Speaker 1: Yep, thank you. The next question comes from the line of Rob Brown with Lake Street Capital. Rob, please go ahead, your line is open.
Speaker 1: Thank you. The next question comes from the line of Rob Brown with Lake Street Capital. Rob, please go ahead your line is open. Good morning.
Speaker 7: Hey Rob, want to turn the color on the new...
Speaker 7: Yes, I just wanted to get some additional color on the new booking pipeline growth. You talked about. Okay, okay.
Speaker 4: Obviously waste energy market kind of what is that the main driver the growth or where are you seeing the new booking opportunity growth? Yeah, we're seeing it But the growth is primarily coming from renewable energy I think we I believe it's out on our website our new investor that is up. I'm looking at our
Speaker 4: I'm sharing now here. So on our investor deck, which is on the website, you'll see the revised pipeline on there.
Speaker 4: that we just put out. But the growth is really coming from the renewable segment and it does include everything I talked about. It also includes solar. We're seeing a significant amount of solar opportunities. Some of those are in the community solar aspect. Some of those are in the small.
Speaker 4: I would say, sub-scaled utility, meaning not 500 megawatt kind of projects, but the solar aspect is starting to really grow in the US with, obviously, the appropriations that were put out last year, plus some of the incentives. And it's, again, like you read in the headlines, there's a lot of international development that's coming into the US on projects that are looking at combinations.
Speaker 4: You know, we're – in some of those pipeline opportunities, we've got waste energy or biomass, but they want to supplement that with solar capabilities as well, too. So, you know, what we talked about originally, our intent to get into solar was more around, you know, leveraging the solar industry, but how do we create combinations of these clean power technology solutions of solar and –
Speaker 4: and having those conversations and something that is starting to come into the pipeline when we talk about our pipeline overall. But it is all focused in renewable, whether it's in our oxy-combustion biomass, in our solar capabilities, our waste energy capabilities, our bright-loop capabilities, the pipeline is definitely growing.
Speaker 4: in that regard. You know, our thermal business, you know, has pipeline in their projects out there. A lot of those are construction or upgrades and enhancements. And it's not that those are shrinking. The parts, the thermal business is staying really steady for us. Clearly the pipeline doesn't include the parts and services piece.
Speaker 4: So that's separate business that we always talk about and we always got to keep that in mind. But it's the reason that we're seeing the expansion is all around the renewable and environmental segments. So we're excited about that. Great, thank you. And then the thermal parts and services business, I think at one point there was some deferment.
Speaker 7: of activity, how do you sort of see that market? Is there pent up command there? How does that look at this point?
Yeah, no, we had a strong Q4 in bookings and I would say Q1 is flowing back more traditional, like a traditional standpoint. As it relates to just the expectations of revenue in EBITDA, a margin from that sector, we Bitcoins want to Summon more Federal
We've incorporated in our forecast before where things were book and bill in 30 days, it's book and bill in 65 to 90 days. But that's just incorporated in our planning and our flows of costs and revenues going forward. But the demand for that is come back to the.
and look at the end of 22 and books and...
We look at 2023, that business overall just continues to operate and perform at very solid margins and we continue to look at how we can expand it internationally and we continue to look at how we can expand it through reverse engineering of competitive technologies, but it's just a solid state business, but I think we're fairly back on track to where it was once was.
as it relates to the demand and the order starting to come in. I don't know if that's... No, that's consistent with what we're experiencing at this point in time. So we expect the thermal business to continue to perform as well as it has. It just hasn't been hit by any decreases as much as people sometimes predict that the thermal business will be hit.
Great, thank you.
Thanks Rob. Thanks Rob.
The next question comes from Brent Seilman with DA Davidson. Brent, please go ahead.
Thanks. Good morning, Jenny.
Hey, thanks more
Danny, I know you guys have taken a lot of measures internally to address some of these flagging issues which should help you out this year, but can you help us sort of better understand this kind of $30 million plus bridge on guidance from 22 to 23? Is that...
Sort of assume no further degradation and margins or delays related to supply chain and then the remainders to sort of essentially a ramp up on new workbook and kind of normalization your short cycle business just kind of want to parse that that bridge out.
Yeah, no, it's a great question. So what we did was we took basically the current state of the supply chain, which was impactful obviously in our...
objectives in 22, but we've just normalized that out in our forecast, so when we look at the business, we just assume that the supply chain timing and processes and everything that we faced last year, they're just booked into our normal aspects. So it's, again, as I mentioned before, there's certain things that you take 30 or 40 minutes to do.
time to that, but it's baked into our forecast and calculations, so the best way I can describe it is we've normalized it, meaning we've just incorporated that level of supply chain aspects and said that's just normal course, and now our forecasts are based on that going forward. And again, if it improves, if things go back to where it was, I, you know.
I baked it in and said, hey, this is just the way it's gonna be, let's make sure we manage the business accordingly, forecast the business accordingly, and so that's all baked into those numbers.
I mean, it seemingly – it does, and it seemingly should have pretty good top-line growth with all the new work you've booked. Are you assuming that you can see some margin expansion as well this year at this point, or is it too early to say, given all those supply chain factors?
I would say this way, there's potential out there across the board from margin expansion. It's too early to say that you give any guidance, we see specific ways that that could happen. Clearly there's potential for that and we'll see how it shakes out as we go forward.
We, you know, those opportunities are there. So we'll keep an eye on it, but I wouldn't say anything right now that we could give any concrete guidance to. Yeah, that I would say right now when we look at going forward, we do our modeling based on where prices are. We're not looking at any great decrease in the inflation, etc.
While we've done a little better than inflation, our supply chain guys have done a good job. As we model out and see where we can still be in the 100 to 120 range, that's based on, as Kenny said, really current pricing conditions, etc.
So there could be upside, but I think we just have to wait and see what happens in the economy.
the right year border right or Brent you're breaking up we it's very hard for us to understand your if you can sort of change where you're sitting or something but
Can you hear me Lou?
Can you hear us? Can you hear me Lou? Right now we can.
Go ahead, Brent. You can hear me? Yeah, just a follow up on the case. I think the sequence on that, the EDA for quarter through fourth quarter, maybe it's your expectations for the past 12 to the year and your comfortability with the quality of the business right now. Brent, I really apologize, but...
move on to our final question which comes from the line of Alex Rijel with B Riley. Alex please go ahead.
Thank you. Good morning gentlemen. Very nice quarter. In totality, can you talk about the opportunity with Fidelis, the multiple project opportunities of project cyclists, and how that might flow through backlog over time?
Yeah, none of the Fidelity projects that were, obviously they're in our pipeline, but they're not in our backlog yet. Materially, we've got some minor engineering revenues and things like that here and there with them, but the larger projects aren't in there yet at this point in time.
Fidelity is, you know, they're finalizing their funding aspects around the grown project. We're very close to that process and, you know, I think as we described it would be potential booking towards the end of this year and I think we're all on track on that. We'll have.
obviously probably through the summertime, some further announcements on that publicly that we put out on timing, and updates as it relates to Fidelis, but fully anticipate that anyway. But that's how we're tracking it, so I would look at it at the end of the year more, obviously it's gonna be a three year project.
I think they're targeting that facility to be up and running by early 2026, something like that. The other FIDELFS is also we're working with them on some other opportunities, and some of those are around hydrogen, some of those are in carbon capture projects, and we're excited to be a part and closer with them on those opportunities.
Some of those have good potential, and I would imagine we might be working with them on some engineering studies and things on those projects, even over the course of the next few months. Again, nothing material, but they have a number of projects that they're involved in globally, and so we're definitely excited about that, to be a part of that. So, thank you.
I know if that helps Alex but that's how we're thinking about it.
No, that does. And then coming back to the supply chain challenges and understanding that every project contract is different, are you able to pass along some of, if not all of, the kind of unanticipated costs? And talk us through that a little bit.
Yeah, we do have that. There's a lot of depends, like we sell thousands and thousands of different parts and things like that, but we do have the capabilities to pass along a lot of the...
the price increase or cost increases that occur or that we inherit from our vendors and suppliers. There are moments where we can do it immediately. There are, depending on the situation, some where we absorb it on one or two, but then we're able to pass it, the increases at a later date.
just depends on the contract and the other aspects we have. But, and then there's a few project, large long-term projects, and we're in multi-year projects where we have the ability to adjust some pricing mechanisms, on certain elements, maybe not on others. So, they do vary a little bit, project to project to part to part and customer to customer. But, you know, on average, we're able to effectively increase that. In some cases, uh...
that there's every year kind of a few dynamics that might stand out as special situations.
Yeah, as you've seen in the past, the cadence of our cash flow kind of kind of grows over each quarter. So you know your first quarter, our first quarter is generally a lower cash flow quarter. It builds in the second quarter, builds a little more in the third quarter, and then a very as we evidenced by the performance here.
we have a very strong fourth quarter. So we expect that cadence to continue. We've also taken internal and process steps to work more closely with each of our units to push better cash processes and collection processes. And that's paid off too. But Alex, I would expect the same cadence that you've experienced over the years. But with the EBITDA growth that we're looking.
That concludes our conference call. A replay will be available for a limited time on our website later today.
Play will be available for a limited time on our website later today.
Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.