Q2 2024 Orion Group Holdings Inc Earnings Call

Operator: Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad, and to withdraw a question, please press star, then two. Please also note that this call is being recorded today. I would now like to turn the call over to Margaret Boyce of Investor Relations. Please go ahead. Thank you.

Specialist by pressing the star key followed by zero.

Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two.

Speaker Change: Please also note that this call is being recorded today.

Speaker Change: I would now like to turn the call over to Margaret bought yourself of Investor Relations. Please go ahead.

Margaret Boyce: Thank you, Joe. And thank you all for joining us today to discuss Orion Group Holdings' second quarter 2024 financial results. We issued our earnings release after the market last night. It's available in the investor relations section of our website at oriongroupholdings.com. I'm here today with Travis Boone, Chief Executive Officer of Orion, and Scott Thanisch, Chief Financial Officer.

Margaret: Thank you Joe and thank you all for joining us today to discuss Orion Group Holdings second quarter 2024 financial results.

Speaker Change: Our earnings release aftermarket last night. It is available in the Investor Relations section of our website at Orion Group Holdings Dotcom.

Speaker Change: I'm here today with Travis Boone, Chief Executive Officer of Orion, and Scott <unk>, Chief Financial Officer on today's call management will provide prepared remarks, and then we'll open up the call for your questions before we begin I'd like to remind you that today's comments will include forward looking statements under the federal Securities laws.

Margaret Boyce: On today's call, management will provide prepared remarks, and then we'll open up the call for your questions. Before we begin, I'd like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts are forward-looking statements. Our actual financial condition and results of operations may differ materially from those contemplated by such forward-looking statements.

Speaker Change: Forward looking statements are identified by words, such as will be intend believe expect anticipate or other comparable words and phrases statements that are not historical facts are forward looking statements, our actual financial condition and results of operations may vary materially from those contemplated.

Speaker Change: By such forward looking statements discussion of the factors that could cause our results to differ materially from these forward looking statements are contained in our SEC filings, including our reports on Form 10-Q, and 10-K with that I'd now like to turn the call over to Travis Travis. Please go ahead.

Margaret Boyce: Discussion of the factors that could cause our results to differ materially from these forward-looking statements is contained in our SEC filings, including our reports on Form 10-Q and 10-K. With that, I'd now like to turn the call over to Travis. Travis, please go ahead.

Travis J. Boone: Thank you, Margaret, and good morning, everyone, and thank you for joining our second quarter 2024 conference call. I'll start with an overview of our second quarter results, recent wins, and a market update, and then I'll turn it over to Scott to cover our financial results. In the second quarter, we generated revenue of $192 million and adjusted EBITDA of $5.5 million. As we discussed over the past two quarters, we anticipated a slower ramp-up with two large projects over the first half of the year. We don't like surprises and recognize that we fell short of consensus.

Travis: Thank you Margaret.

Travis: Good morning.

Speaker Change: Hi, everyone and thank you for joining our second quarter 2024 conference call.

Travis: I'll start with an overview of our second quarter results recent wins and a market update and then I'll turn it over to Scott to cover our financial results.

Scott: In the second quarter, we generated revenue of $192 million and adjusted EBITDA of $5 5 million.

Speaker Change: As we discussed over the past three quarters, we anticipated a slower ramp up with two large projects over the first half of the year.

Speaker Change: We don't like surprises and recognize that we fell short of consensus.

Travis J. Boone: We have been transparent about what we were seeing. There's nothing more important to me than doing what we say we will do. This is a short-term challenge. We have an incredibly talented team and a strong foundation with a huge market opportunity ahead. While we had some logistical setbacks late in the quarter, our Grand Bahamas Shipyard Dry Dock project is now back on track, and our teams on the Pearl Harbor project are working double time to get back on schedule.

Speaker Change: We have been transparent about what were seeing Ed.

Speaker Change: There is nothing more important to me than doing what we say we will do.

Ed: This is a short term challenge, we have an incredibly talented team and a strong foundation with a huge market opportunity ahead.

Ed: While we had some logistical setbacks late in the quarter, our Grand Bahama Shipyard Drydock project is now back on track.

Ed: And our teams on the Pearl Harbor project are working double time to get back on schedule.

Travis J. Boone: In construction, work delays beyond our control are not uncommon and can sometimes cause results to vary from quarter to quarter. While the total value of the contracts remains unchanged, revenue recognition will shift. While these delays are not expected to have any impact on the critical completion of these large projects, they will affect our full year 2024 financial results. For this reason, we are lowering our annual guidance to a revenue range of $850 million to $900 million and an adjusted EBITDA range of $40 million to $45 million.

Ed: Construction work delays beyond our control are not uncommon.

Ed: And so sometimes caused our results to vary from quarter to quarter.

Speaker Change: While the total value of the contracts remain unchanged revenue recognition will shift.

Speaker Change: While these delays are not expected to have any impact on our critical completion of these large projects they will affect our full year 2020 for financial results for.

Speaker Change: For this reason we are lowering our annual guidance to a revenue range of $850 million to $900 million.

Speaker Change: On an adjusted EBITDA range of $40 million to $45 million.

Travis J. Boone: We are still on target to deliver a very strong second half. And, more importantly, our long-term outlook remains very strong. We are no less confident about our ability to grow and perform in our business. We continue to add attractive projects to our backlog, and our pipeline of opportunities has increased to more than $14 billion. This puts us in a great position for an outstanding 2025. Our market is developing as we thought it would.

Speaker Change: We are still on target to deliver a very strong second half on a comparable basis.

Speaker Change: More importantly, our long term outlook remains very strong.

Speaker Change: We are no less confident about our ability to grow and perform in our business.

Speaker Change: We continue to add attractive projects to our backlog and our pipeline of opportunities has increased to more than $14 billion.

Speaker Change: This puts us in a great position for an outstanding 2025.

Travis J. Boone: Activity is ramping up and will continue over the coming years. Our business development efforts translated into some noteworthy second quarter wins in both marine and concrete segments, including our first large Orion Concrete Award in Florida since expanding our concrete business there. In addition to the awards previously announced, so far in July, we have won a total of $118 million in work across both segments, bringing our total backlog and awarded work to $876 million.

Speaker Change: Our market is developing as we thought it would activity is ramping up and will continue over the coming years.

Speaker Change: Our business development efforts translated into some noteworthy second quarter wins in both marine and concrete segments, including our first large Orion concrete award in Florida, since expanding our coffee business there.

Speaker Change: In addition to the awards previously announced so far in July we had won a total of $418 million and work across both segments.

Speaker Change: Our total backlog and awarded work to $876 million.

Travis J. Boone: For our marine business, we announced an $80 million contract with a longstanding customer, Port Everglades in Fort Lauderdale. The scope of work includes the replacement of over 2,000 linear feet of aging steel sheet pile bulkhead walls, including large diameter combi wall systems, soil anchors, and encapsulated concrete caps. This project has started and will continue through next year. We also announced a $20 million project for our longtime customer Port Tampa Bay. We have a four-year relationship with Port Tampa Bay and have completed several projects with them over the last 10 years. In this project, we are building a new berth that will include additional breasting dolphins connected to the walkways and onshore high-wind mooring points.

Speaker Change: For our marine business, we announced an $80 million contract with a longstanding customer port Everglades in Fort Lauderdale.

Speaker Change: The scope of work includes the replacement of over 2000 linear feet of aging DLC power bulkhead walls, including large diameter, Colombia, all systems soil anchors encapsulated concrete caps.

Speaker Change: This project has started and will continue through next year.

Speaker Change: We also announced the $20 million project for a long time customer for Tampa Bay.

Speaker Change: We have a 40 year relationship with for example Bay and have completed several projects with them over the last 10 years.

Speaker Change: In this project we are building a new birth that will include additional breasting dolphins connected to the walkways and onshore highway mooring points. This marine project is a prime example of the infrastructure upgrades needed throughout our country's courts to improve and expand <unk> capabilities.

Travis J. Boone: This marine project is a prime example of the infrastructure upgrades needed throughout our country's ports to improve and expand port capabilities. Turning to our concrete segment, we won our first large award since expanding our concrete business to Florida. It is a $28 million contract for Costco Wholesale through Southeast Industrial Construction as general contractor. The project is for the new construction of the Port St. Lucie-Costco Depot Phase I, a pivotal distribution center located in southeast Florida, one of the nation's fastest-growing regions.

Speaker Change: Turning to our concrete segment, we won our first large awards since expanding our concrete business to Florida. It is a $28 million contracts for Costco wholesale through <unk> through southeast industrial construction as general contractor.

Speaker Change: The project is for the new construction of the Port St. Lucie Costco Depot Phase one a pivotal distribution center located in southeast, Florida, one of the nation's fastest growing regions.

Travis J. Boone: This facility will be one of Costco's largest distribution centers and our 16th project with Costco Today. This is a reputation-building project in the Florida market. Orion Concrete was also awarded a significant data center project in North Texas by a major hyperscaler. While details cannot be fully disclosed, the scope is in the range of $15 million. Our competitive advantage in winning data centers is not only our experience and the high quality of our work but also our unmatched safety record, which is extremely important to data center owners. We have an extraordinary culture of safety, and for two consecutive years, our team has had zero lost time.

Speaker Change: This facility will be one of Costco's largest distribution centers and our 16th project with Costco to date.

Speaker Change: This is a reputation building project in the Florida market.

Speaker Change: Well Ryan concrete was also awarded a significant data center project in North, Texas by a major hyperscale or.

Speaker Change: While details cannot be fully disclosed scope is in the range of $15 million.

Speaker Change: Our competitive advantage in winning data centers is not only our experience and the high quality of our work, but also our unmatched safety record.

Speaker Change: It is extremely important to data center owners.

Speaker Change: We have an extraordinary culture culture of safety and for two consecutive years. Our team has had zero lost time incidents.

Travis J. Boone: In addition to the wind previously announced, during July, we won several notable projects in our concrete and marine segments. In marine, we won a $28 million construction project at the Clearwater Beach Marina, a $28 million construction project for the Port of Galveston, and a $29 million dredging project for the U.S. Army Corps of Engineers. In concrete, we want a $16.5 million tilt wall project in South Texas, and two additional data center projects for $8 million and $5 million are the 23rd and 24th data center projects.

Speaker Change: In addition to the wins as previously announced during July we won several notable projects in our concrete and marine segments.

Speaker Change: In Marine we won a $28 million construction project at the Clearwater Beach Marina.

Speaker Change: $28 million construction project reported Galveston, and a $29 million dredging projects for the U S Army Corps of engineers.

Speaker Change: In concrete we went to $16 5 million tilt wall project in South, Texas, and two additional data center projects for $8 million and $5 million.

Speaker Change: Our 20, <unk> and 24th data center projects.

Travis J. Boone: Looking forward, the data center market is going strong at a time when commercial development work is slowing in this higher interest rate environment. The massive data center market is helping to fill the gap. And we feel good about our ability to continue to be successful in this area that is being driven by the AI juggernaut. Demand for marine construction work is increasing, and it's perfectly suited to our expertise. We expect multiple strong tailwinds to drive our marine business going forward.

Speaker Change: Looking forward the data center market is going strong at a time when commercial development work is slowing in this higher interest rate environment.

Speaker Change: The massive data center market is filling helping to fill the gap.

Speaker Change: And we feel good about our ability to continue to be successful in this area that is being driven by the AI juggernaut.

Speaker Change: Demand for Marine construction work is increasing and it's perfectly suited for our expertise we expect.

Speaker Change: Multiple strong tailwind to drive our marine business going forward.

Travis J. Boone: These include significant investments by the U.S. Navy to deter potential Chinese expansion in the Pacific. The $1.2 trillion infrastructure bill. Capital Projects for Expansion of Port Facilities Along the U.S. Coast, coastal restoration, and numerous large opportunities for private investment for alternative fuels like LNG, methanol, and ammonia, primarily along the Gulf Coast.

Speaker Change: These include significant investments by the U S Navy to deter potential Chinese expansion in the Pacific.

Speaker Change: The one two trillion dollars infrastructure Bill.

Speaker Change: Capital projects, where expansion of port facilities, along the West coast.

Speaker Change: Coastal restoration and numerous large opportunities in private investment for alternative fuels like LNG methanol and ammonia primarily along the Gulf coast.

Speaker Change: We expect to see project volume ramp up in 2024 through 2025 and.

Travis J. Boone: We expect to see project volume ramp up in 2024 to 2025, and the investments we are making to improve our fleet, our systems, and our teams will enhance our competitive position. As we enter the second half of the year, I continue to be optimistic about our future. Together with our teams, we've made great strides in strengthening the foundation of our company. By instilling disciplined processes, investing in business development, and training in IT systems, we are much stronger today. Our teams are aligned on the same mission, delivering predictable excellence throughout standing execution. We look forward to delivering better results for our stakeholders. I'll turn it over to Scott for the financial review, Scott.

Speaker Change: And the investments, we are making to improve our fleet our systems and our teams will enhance our competitive position.

Speaker Change: As we entered the second half of the year I continue to be optimistic about our future.

Speaker Change: Together with our teams we've made great strides in strengthening the foundation of our company.

Speaker Change: By instilling discipline processes investing in business development training and it systems, we are much stronger today.

Speaker Change: Our teams are aligned on the same mission delivering predictable excellence through outstanding execution.

Speaker Change: We look forward to delivering improving results for our stakeholders.

Speaker Change: I'll turn it over to Scott for the financial review Scott.

Scott: Thanks Travis.

Gordon Scott Thanisch: In our second quarter, we generated revenue of $192.2 million, up 5% over last year. As Travis mentioned, projects that were delayed in the first half are back on track, and we expect revenue to ramp up in the second half of the year. Similar to last quarter, the mix of revenue continued to shift. Marine revenue was up 30%, while concrete revenue was down 25%.

Scott: And our second quarter, we generated revenue of $192 2 million up.

Scott: Up 5% over last year.

Scott: As Charles mentioned projects that were delayed in the first half are back on track and we expect revenue to ramp in the second half of the year.

Speaker Change: Similar to last quarter the mix of revenue continued to shift.

Charles: Marine revenue was up 30%, while concrete revenue was down 25%.

Gordon Scott Thanisch: This change in mix reflects our focus on marine segment growth opportunities, as well as the discipline bidding standards we adopted to win quality work at attractive margins in our concrete segment. Second quarter gross profit margin increased to $18.3 million, or 9.5% of revenue, up from $13.8 million, or 7.6% of revenue in the second quarter of 2023. Both segments increased both gross margin dollars and gross margin percentage over the prior year. The 190 basis point increase in consolidated gross margin was primarily driven by improved pricing of high-quality projects and improved execution in both sectors.

Speaker Change: This change in mix reflects our focus on marine segment growth opportunities as well as the disciplined bidding standards, we adopted to win quality work at attractive margins in our concrete segment.

Speaker Change: Second quarter gross profit margin increased to $18 3 million or nine 5% of revenue.

Speaker Change: From 13, 8% $13 8 million or seven 6% of revenue in the second quarter of 2023.

Speaker Change: Both segments increased both gross margin dollars and gross margin percentage over the prior year.

Speaker Change: The 190 basis point increase in consolidated gross margin was primarily driven by improved pricing of high quality projects and improved execution in both segments.

Gordon Scott Thanisch: SG&A expenses were $21.1 million, up from $18.1 million in the second quarter of 2023. As a percentage of total contract revenues, SG&A expenses increased to 10.9% from 10%. The increase in SG&A dollars and percentage of revenue reflected an increase in compensation expense, business development spending, and legal costs. Additionally, over the next few months, we will be rolling out new IT tools and processes for our operations and our back office. These tools will share information and provide insight into the progress of our projects, improving our ability to effectively manage these projects on the ground.

Speaker Change: SG&A expenses were $21 $1 million.

Speaker Change: Up from $18 1 million in the second quarter of 2023.

Unknown Executive: As a percentage of total contract revenues, SG&A expenses increase to 10.9% from 10%. The increase in SG&A dollars and percentage of revenue reflected an increase in compensation expense, business development spending, and legal cost.

Speaker Change: As a percentage of total contract revenues SG&A expenses increased to 10, 9% from 10%.

Speaker Change: The increase in SG&A dollars and percentage of revenue reflected an increase in compensation expense business development spending and legal costs.

Unknown Executive: But with the next few months, we will be rolling out new IT tools and processes for operations and our back office. These tools will share information and provide insight to the progress of our projects, improving our ability to effectively manage these projects on the ground. We are also migrating our business segments to the same financial platform, delivering efficiencies and greatly improving our line site across the entire business.

Speaker Change: Over the next few months, we will be rolling out new tools and processes for our operations and our back office.

Speaker Change: These tools will share information and provide insight to the progress of our projects.

Speaker Change: Improving our ability to effectively manage these projects on the ground.

Speaker Change: We are also migrating our business segments to the same financial platform delivering efficiencies and greatly improving our line of sight across the entire business.

Gordon Scott Thanisch: We are also migrating our business segments to the same financial platform, delivering efficiencies and greatly improving our line of sight across the entire business. Turning to profitability, we reported an adjusted net loss of $5.2 million, or $0.16 per diluted share, in the second quarter, compared to an adjusted net loss of $4.5 million, or $0.14 per diluted share. The second quarter net loss included $1.4 million, or four cents per diluted share, of non-recurring items. Our gap net loss for the second quarter of 2024 was $6.6 million, or $0.20 per diluted share.

Unknown Executive: According to profitability, we reported an adjusted net loss of $5.2 million, or 16 cents per diluted share, in a second quarter. Compared to an adjusted net loss of $4.5 million, or 14 cents per diluted share, in the prior year period.

Speaker Change: Turning to profitability, we reported an adjusted net loss of $5 2 million or <unk> 16 per diluted share in the second quarter.

Speaker Change: Compared to an adjusted net loss of $4 5 million or <unk> 14 per diluted share in the prior year period.

Speaker Change: The second quarter net loss included $1 4 million or <unk> <unk> per diluted share of nonrecurring items.

Unknown Executive: The second quarter net loss included $1.4 million, or four cents per diluted share, of nine recurring items. Our GAAP net loss for the second quarter of 2024 was $6.6 million, or 20 cents per diluted share.

Speaker Change: Our GAAP net loss for the second quarter of 2024 was $6 6 million or 20 cents per diluted share.

Gordon Scott Thanisch: EBITDA for the second quarter was $3.3 million, and adjusted EBITDA was $5.5 million; adjusted even the margin was 2.9%, up from 2% in the prior year period. Moving on to bidding metrics. In the second quarter, we bid on approximately $1.3 billion worth of opportunities, winning $194 million. This resulted in a contract value-weighted win rate of 15.2% and a book-to-bill ratio of just over one times for the quarter. As of June 30th, our backlog was $758.4 million, compared to $756.6 million at March 31st of last year and $818.7 million at June 30th of this year. I'm sorry, June 30th of last year.

Speaker Change: EBITDA for the second quarter was $3 3 million and adjusted EBITDA was $5 5 million.

Unknown Executive: Even after the second quarter was $3.3 million and adjusted, even it was $5.5 million. Adjusted even the margin was 2.9% up from 2% in the prior year period.

Speaker Change: Adjusted EBITDA margin was two 9% up from 2% in the prior year period.

Speaker Change: Moving onto bidding metrics in the second quarter, we bid on approximately $1 $3 billion worth of opportunities winning $194 million.

Unknown Executive: Moving on to bidding metrics. In the second quarter, we bid on approximately $1.3 billion worth of opportunities, winning $109.4 million. This resulted in a contract valued weighted win rate, a 15.2%, and a book to bill ratio just over one time for the quarter.

Speaker Change: This resulted in a contract valued weighted win rate of 15, 2% and a book to Bill ratio just over one times for the quarter.

Unknown Executive: As of June 30th, our back loan was $758.4 million compared to $756.6 million at March 31st of last year and $818.7 million at June 30th of this year. I'm sorry, June 30th of last year. Breaking out our second quarter back loan, $567.1 million was in our Marine segment and $191.3 million was in our Concrete segment. During the second quarter, adjusted even the margin in the Marine segment was 1.1% compared to 3.4% last year. Adjusted, even the margin in our concrete segment improved to 6.6%, up from 0.3% in the second quarter last year.

Speaker Change: As of June 30, our backlog was $758 4 million compared.

Speaker Change: Compared to $756 6 million at March 31 of last year.

Speaker Change: $818 7 million at June 30 of this year.

Speaker Change: Im sorry June 30 of last year.

Gordon Scott Thanisch: Breaking out our second quarter backlog, 567.1 million were in our marine segment, and 191.3 million were in our concrete segment. During the second quarter, adjusted EBITDA margin in the marine segment was 1.1%, compared to 3.4% last year. Adjusted EBITDA margin in our concrete segment improved to 6.6%, up from 0.3% in the second quarter last year. As a reminder, our goal is to generate adjusted EBITDA margins in the low double digits for Maria and in the high single digits for Concrete.

Speaker Change: Breaking out our second quarter backlog of $567 1 million was in our Marine segment and $191 3 million was in our concrete segment.

Speaker Change: During the second quarter adjusted EBITDA margin in the Marine segment was one 1% compared to three 4% last year.

Speaker Change: Adjusted EBITDA margin in our concrete segment improved to six 6% up from 3% in the second quarter last year.

Speaker Change: As a reminder, our goal is to generate adjusted EBITDA margins in the low double digits for marine.

Unknown Executive: As a reminder, our goal is to generate adjusted even the margins in the low-double digits from the Marine and high single digits for concrete. We've been pleased with the progress of our concrete segment since they returned to even the profitability that you're a gallon. Everything starts with winning the right jobs with good margins. With this better starting point, our project teams have implemented new field practices focused on delivering projects to our customers more efficiently and a better-than-bid margin.

Speaker Change: In high single digits for concrete.

Gordon Scott Thanisch: We've been pleased with the progress of our concrete segment since it returned to EBITDA profitability a year ago. Everything starts with winning the right jobs with good margins. With this better starting point, our project teams have implemented new field practices focused on delivering projects to our customers more efficiently and at better-than-bid margins. Margins in our marine business retreated somewhat this quarter, largely as a result of unabsorbed costs related to delayed projects and lower margins in our maintenance stretching business.

Speaker Change: We've been pleased with the progress of our concrete segment since they returned to EBIT profitability a year ago.

Speaker Change: Everything starts with winning the right jobs with good margins.

Speaker Change: With this better starting point our project teams have implemented newfield practices focused on delivering projects to our customers more efficiently and at better than bid margins.

Speaker Change: Margins in our marine business retreated somewhat this quarter largely a result of unabsorbed cost related to delayed projects and lower margins in our maintenance dredging business.

Gordon Scott Thanisch: We expect to see marine margins improve in the back half of the year as activity levels increase. Turning to the balance sheet, as of June 30th, we had $4.8 million in cash and total debt outstanding of $60.3 million. We had $21 million in outstanding borrowings under our revolving credit facility at the end of the quarter.

Speaker Change: We expect to see marine margins improve in the back half of the year as activity levels increase.

Speaker Change: Turning to the balance sheet as of June 30, we had $4 8 million in cash and total debt outstanding of $60 3 million.

Speaker Change: We had $21 million in outstanding borrowings under our revolving credit facility at the end of the quarter.

Gordon Scott Thanisch: In June, our East-West Jones deal with the last buyer did not close and was terminated. While this is disappointing, we are confident that the difficulties in closing this sale have been related to the interest rate environment and not due to a lack of interest in the property. Throughout this sale process, we've had multiple serious buyers. A good deal of due diligence has been completed without identifying any remediation or related issues specific to the property.

Speaker Change: In June our East West Jones deal with the last buyer did not closed it was terminated.

Speaker Change: While this is disappointing we are confident that the difficulties in closing this sale has been related to the interest rate environment and not due to a lack of interest in the property.

Speaker Change: Throughout this sale process, we've had multiple serious buyers a good deal with due diligence has been completed without identifying any remediation related issues specific to the property.

Gordon Scott Thanisch: On July 2nd, we entered into a purchase and sale agreement with Capital Development Partners for the East West Jones property for $30.5 million with an anticipated close on or before September 30th, 2024. We remain confident that we will close this sale to free additional liquidity to fuel our growth. As Travis mentioned, we anticipate growing our backlog and the top line substantially over 2023. We expect revenue to ramp up, and we will see a nice increase in cash flow in the back half of the year.

Speaker Change: On July <unk>, we entered into a purchase and sale agreement with capital development partners for the East West <unk> property for $30 $5 million with an anticipated close on or before September 32024.

Speaker Change: We remain confident that we will close the sale to free additional liquidity to fuel our growth.

Speaker Change: As Travis mentioned, we anticipate growing our backlog and the topline substantially over 2023.

Travis: We expect revenue to ramp up and we will see a nice increase in cash flow in the back half of the year.

Gordon Scott Thanisch: At the same time, we plan to continue to improve margins by managing the business more effectively, more efficiently, and more productively. For the full year 2024, we are lowering our guidance both for anticipated revenue in the range of $850 million to $900 million and expected adjusted EBITDA in the range of 40 to 45 months. And with that, we'll open up the call to questions.

Travis: At the same time, we plan to continue to improve margins by managing the business more effectively more efficiently and more productively.

Speaker Change: For the full year of 2024, we are lowering our guidance both for anticipated revenue in the range of $850 million to $900 million.

Travis: And expected adjusted EBITDA in the range of $40 million to $45 million.

Speaker Change: And with that we'll open up the call for questions.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. And to withdraw a question, you may press the star, then two. At this time, we will pause just momentarily to assemble our roster, and our first question here will come from Aaron Spahalla with Craig Hallam. Please go ahead with your question.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys and to withdraw a question you May Press Star then two.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Erin <unk>: And our first question here will come from Erin <unk> with Craig Hallum. Please go ahead with your question.

Erin: Yeah, Good morning, Travis and Scott Thanks for taking the questions.

Aaron Spahalla: Yeah, good morning, Travis and Scott, thanks for taking the questions. You know, maybe first for me on the two large projects, can you just give a little bit more detail on the logistical setbacks at Grand Bahama and some of the issues in Hawaii that you're working to get back on schedule? Just confidence there, and you know, sounds like really not any changes to overall profitability on the projects per se, just, you know, more timing where you can still make that up.

Erin: Maybe first for me on the two large projects can you just give a little bit more detail on the logistical setback set at Grand Bahama and some of the issues in Hawaii that youre working to get back on schedule.

Speaker Change: Just confidence there and you know it sounds like really not any changes to overall profitability on the projects per se just more timing, where you can still make that up.

Erin: Sure. Thanks, Thanks Erin.

Travis J. Boone: Sure. Thanks. Thanks, Aaron.

Travis J. Boone: Yeah, so I'll start with the Grand Bahama shipyard project. That one we did have a delay with one of our subcontractors getting on site. Fortunately, it wasn't critical path work. They did.

Speaker Change: Yeah, So I'll start with Grand Bahama Shipyard project that one we did have a delay with one of our sub contractors getting on site.

Speaker Change: It wasn't critical path work they did they did get onsite.

Travis J. Boone: They did get on site late in the second quarter and got their work finished early July, so we were able to catch up there without impacting the overall project, just a bit of a delay in some of the revenue. And then on the Hawaii project. We've talked about a few of these before, but we had some issues early in the year with the Panama Canal and delays getting material deliveries through there from with our piles that are coming from Houston and going to Hawaii.

Erin: And then in the late in the second quarter and got their work cut there were finished.

Erin: In early July so we've we've we were able to catch up there without impacting the overall project just the.

Erin: A bit of a delay in some of the revenue.

Erin: And then on the.

Erin: On the Hawaii project.

Erin: We've talked about a few of these.

Erin: Before but there we had a we had some issues early in the year with the Panama Canal and delays getting material deliveries through there from.

Erin: With our piles that are coming from Houston are going to go into Hawaii and then we've had some other our other hiccups if you will.

Travis J. Boone: And then we had some other hiccups, if you will, related to some work that needed to be done before we did our work that wasn't completed on time. And so we were in a bit of a waiting scenario, waiting to be able to get our work done. So in both cases, it was issues out of our control. And, you know, we've done everything we could to catch up on the Hawaii project. And we'll continue to push forward on that one and feel good about what we're going to be able to finish for the rest of the year.

Erin: Related to <unk>.

Erin: Some work that needed to be done before we did our work there wasn't it wasn't wasn't completed on time and so we were in a bit of it.

Erin: Awaiting scenario waiting to be able to get our work done so in both cases it was.

Erin: Issues out of our control and we've done everything we can to to.

Erin: Catch up on the Hawaii project and we'll continue to.

Erin: To push forward on that one and feel good about what we're gonna be able to finish for the rest of the year.

Travis J. Boone: Alright, thanks for that. And then you may be second on the Navy opportunity, the $15 billion RFP that came out. Can you just talk about the process and timeline there? And then, you know, broadly, the overall opportunity with the Navy in the coming years, you know, are there still opportunities additional that are outside of that RFP for you as well?

Speaker Change: Alright, Thanks for that and then maybe second just on the the Navy opportunity saw the $15 billion RFP that came out can you just talk about the process and timeline there and then just.

Speaker Change: Broadly the overall opportunity with the Navy in the coming years is there still opportunities additional that are that are outside of that RFP for you as well.

Travis J. Boone: Definitely, yeah, that was the RFP that came out was the PDI MAP, which stands for Multiple Award Construction Contract. It's a $15 billion contract. They'll select three contractors for the work there. Timing is, we'll be working on that proposal here for several months. I think they're anticipating selection late this year or early next year. And basically, that's one of multiple MAC contracts and other contracting mechanisms the Navy is using for the billions of dollars that they're going to be spending in the Pacific. So that's just one of multiple different contracts that we've either already pursued or will be pursuing in the coming months. So there are quite a few of those out there like that.

Speaker Change: Definitely yeah that was the that RFP that came out was the PDI map, which stands for multiple award construction contract.

Speaker Change: $15 billion contract, though they'll select three contractors for further work there.

Speaker Change: Timing is we'll be working on the proposal here for.

Speaker Change: For several months I think they are anticipating selection late this year or early next year.

Erin: And.

Erin: Basically that's one of multiple Mac contracts and other contracting mechanisms the navy's using for the billions of dollars that they're going to be spent in the Pacific.

Erin: So that's just one of one of multiple.

Erin: Different contracts that are that are we've either already pursued or will be pursuing.

Erin: In the coming months, so there's quite a few quite a few of those out there like that.

Speaker Change: Alright, and then just maybe last one you mentioned a $20 million dredging project for the Army Corps are you starting to see that that market come back a little bit and then just maybe talk about how you're managing your equipment fleet are there given given market dynamics.

Travis J. Boone: All right. And then maybe last one, you mentioned a $20 million dredging project for the Army Corps. Are you starting to see that market come back a little bit, and then maybe talk about how you're managing your equipment fleet there, given market dynamics?

Travis J. Boone: Yeah, we're still seeing that market disrupted. It's not, it's not still not returning to what was the norm a couple of years ago. It's still been fairly slow with new new projects coming to bid, so it's going to continue to be a challenge for us. Fortunately, we've been able to keep our dredges busy doing some private work and a few other contracts that we won earlier in the year and last year with the Corps.

Speaker Change: Yeah, we're still seeing that market disrupted it's not it's not.

Speaker Change: Still not returning to what was the norm of a couple of years ago still still been.

Speaker Change: Fairly slow with with no new projects come in come into bids so.

Speaker Change: Continue to be a challenge for us Fortunately, we've been able to keep our dredges busy on on doing some private work in and a few other contracts that we won earlier in the year last year with the core. So we will obviously continue to pursue those projects when they when they do come out and.

Travis J. Boone: So we'll obviously continue to pursue those projects when they when they do come out, and at some point, at some point, it will get back to normal because it's maintenance dredging that has to happen. And so there's, And that work never ends. It's an ongoing process to maintain the shipping channels and intercoastal waterways.

Speaker Change: At some point at some point it will it will get back to normal because its maintenance strategy and that has to happen and so theirs.

Speaker Change: And that work never ends it's a no.

Speaker Change: Ongoing ongoing process to maintain the shipping channels and and the intercoastal waterways.

Aaron Spahalla: Understood. Thanks for taking the questions. I'll pop back in queue.

Speaker Change: Understood.

Speaker Change: For taking the questions I'll hop back in queue.

Speaker Change: Please go ahead Sir.

Julio Alberto Romero: And our next question will come from Julio Romero with the Sidonian Company. Please go ahead with your question.

Speaker Change: And our next question will come from Julio Romero with Sidoti <unk> Company. Please go ahead with your question.

Julio Alberto Romero: Thanks. Hey, good morning.

Julio Alberto Romero: Thanks, Hey, good morning, maybe to start on the guidance range.

Gordon Scott Thanisch: Maybe to start on the guidance range, you know, still implies, even at the low end of the sales range, very strong year-over-year growth in the third and fourth quarters. Can you maybe speak to the confidence in hitting the lower end of your guidance for sales? And then, kind of, could you help us out with the cadence of sales expected for the third and fourth quarters?

Julio Alberto Romero: Still implies even at the low end of the sales range very strong year over year growth in the third and fourth quarters can you maybe speak to.

Speaker Change: The confidence in hitting the lower end of your guidance of your sales guidance and then secondly kind of if.

Speaker Change: If you could help us out with the cadence of sales expected for the third and fourth quarters.

Speaker Change: Sure.

Gordon Scott Thanisch: Sure. So we do feel really good about the second half of the year, with a large amount of work happening in our landing division in Florida and the Caribbean that's really cranked up in the last half of the year. And then obviously, we've got the Hawaii project that's gaining momentum, and we expect a strong performance there for the rest of the year. Additionally, we've got multiple opportunities that we're continuing to pursue throughout our operating areas in both concrete and marine. So we're feeling good about the second half of the year.

Speaker Change: So we do feel really good about the second half of the year.

Speaker Change: A large amount of work happening in our Atlantic Division.

Speaker Change: Florida and the Caribbean.

Speaker Change: <unk> really cranked up in the last half of the year.

Speaker Change: And then obviously, we've got the Hawaii project, that's gaining momentum.

Speaker Change: And we expect a strong performance there for the rest of the year.

Speaker Change: Additionally, we've got.

Speaker Change: <unk> opportunities that we're continuing to pursue throughout our operating areas in both concrete and marine. So we're we're feeling good about about the second half of the year and.

Gordon Scott Thanisch: Yeah, and when it comes to how it kind of develops out, the second quarter you'll see a pretty substantial increase over the, I'm sorry, the third quarter you'll see a pretty substantial increase over the second quarter, and then it'll kind of hang at that pace in the fourth quarter. So we expect it to develop, it'll increase a little bit as we go through the year, but the big jump is in the third quarter.

Speaker Change: Yes, and when it comes to how it kind of develops out the second quarter Youll see a pretty substantial increase over the I'm sorry, the third quarter, you see a pretty substantial increase over the second quarter.

Speaker Change: And then it will kind of hang at that pace in the fourth quarter. So.

Speaker Change: We expect it to develop it will increase a little bit as we go through the year, but the big jump was in the third quarter.

Julio Alberto Romero: Okay, thanks. That's very helpful there. And then, you know, how does the guidance change on the sales and EBITDA lines translate to the EBS guidance on both gap and adjustment?

Speaker Change: Okay. Thanks, that's very helpful. There and then.

Speaker Change: How does the guidance change on the sales and EBITDA lines translate today to EPS guidance on both GAAP and adjusted.

Gordon Scott Thanisch: Out of the guidance change on the EBITDA line, in terms of dropping it to $5 million, recognizing a little bit that there's the impact of what we've seen in the second quarter, we think that we can offset a lot of that as we continue to improve the performance of those delayed projects. So, as we think about the full-year EBITDA range, we feel pretty confident about where we've set it at the moment.

Speaker Change: How does the guidance change on the EBITDA line.

Speaker Change: In terms of dropping it $5 million.

Speaker Change: Recognizing a little bit that there is the impact of what we've seen in the second quarter. We think we can offset a lot of that as we continue to improve the performance of those delayed projects.

Speaker Change: So.

Speaker Change: As we think about the full year EBITDA range, we feel pretty confident about where we have set a new level.

Julio Alberto Romero: Gosh, sorry, just to clarify, I meant, how does that translate to the EPS guidance that you had from gap earnings per share and adjust our share? Sorry, I misunderstood you. Yeah, I believe there's a reconciliation in the press release that gives you kind of the walk down from the various lines down to EPS. So that should give you the components. And that's it. I'm sorry, that's for the guidance. Yes, there's a reconciliation of the guidance change in the class release.

Speaker Change: Got you sorry, just to clarify I mean, how does how does that translate to the to the EPS guidance that you had from.

Speaker Change: GAAP earnings per share in Russia, sorry, I misunderstood your yes, I believe there's a reconciliation in the press release that gives you kind of the walk down from.

Speaker Change: Some of the various lines down to EPS, so that should give you the components.

Speaker Change: Okay.

Speaker Change: I'm sorry, that's for the guidance.

Speaker Change: Yes.

Speaker Change: The guidance range in the press release.

Speaker Change: Okay.

Speaker Change: I will take on a lot of I guess, after which bev and.

Julio Alberto Romero: Okay, take another look, I guess afterwards for that. And just the last one for me would be, you know, you talked about the opportunity pipeline now standing. 14 billion and then how that sets you up for 2025. Can you maybe expand on that a little bit and you know, what is that opportunity pipeline? What sets you up for order growth over the next two quarters, and how would you have us think about sales growth in 2025? I know it's early stages. Any thoughts there, Sir?

Speaker Change: Just last one for me would be you talked about the opportunity pipeline now standing at.

Speaker Change: At 14 billion and then how that sets you up for 2025 can you maybe expand on that a little bit and how does that opportunity pipeline.

Speaker Change: Kind of.

Speaker Change: Set you up for order growth over the next two quarters and then how would you have us think about the sales growth and 25.

Speaker Change: I know, it's early stage, but.

Speaker Change: Any thoughts there sure.

Travis J. Boone: Sure, you may remember on our last call, we talked about our pipeline being around 11, just over $11 billion. It's increased $3 billion since our last quarterly call. So it's definitely, and it's increased by multiple millions over the past year, which indicates more and more opportunities out there for us to pursue. And again, it's a constrained market in the marine space. And so we feel, feel really good about the number of opportunities that are out there. And that pipeline is primarily a marine business, just because our concrete work is a shorter, shorter visibility to that. So the majority of that pipeline is concrete projects or marine projects. Sorry.

Speaker Change: Sure you May remember on our last call, we talked about our <unk>.

Speaker Change: One being around 11, this over $11 billion since increased $3 billion or so.

Speaker Change: Since our since our last quarterly call.

Speaker Change: It's definitely.

Speaker Change: And.

Speaker Change: This increased multiple millions over the past over the past year.

Speaker Change: Which indicates more and more opportunities out there for us to us to pursue.

Speaker Change: And again, it's a it's a constrained market in the marine space and so we felt.

Speaker Change: Feel really good about the the number of opportunities.

Speaker Change: That are that are out there and that pipeline is primarily marine business.

Speaker Change: Just because of our concrete work is a shorter shorter visibility to that so the majority of that pipeline is concrete project is marine projects sorry.

Julio Alberto Romero: Okay, great. I'll pass it along. Thanks so much.

Speaker Change: Okay, Great I'll pass it along thanks, so much.

Julia: Thanks Julia.

Julia: And our next question will come from Alex Rygiel with B Riley Securities. Please go ahead.

Min: Hi, Good morning, Scott. This is min for Alex I missed a couple of questions Hey, there couple of questions. And then you did talk about the opportunity pipeline growing can you talk a little bit about what the kind of bulk of that increase is from different more federal funding just kind of new geographies just any details there.

Min: Hi, good morning, Travis and Scott. This is Min for Alex. Hi Min. Just a couple of questions. Hey there.

Travis J. Boone: It's not really new geographies, and we've stayed pretty consistent with the geographies that we work in. And so it's not necessarily increasing geography; it's more increasing opportunities with clients. Yes, a lot of it is federally funded or federal projects, whether it's for ports or DOTs or for DOD clients like the Navy and Army Corps of Engineers. There are quite a few opportunities that are showing up on a regular basis for us.

Speaker Change: It's not really new geographies that we've stayed pretty are pretty consistent with the geographies that we that we work in.

Speaker Change: So, it's not necessarily increasing geographies thats more increasing opportunities with with clients. Yes, a lot of it is federal federally funded or federal projects.

Speaker Change: Whether it's for <unk>.

Speaker Change: The reports or.

Speaker Change: D O ts or or or D. O D clients like the Navy and Army Corps of engineers.

Speaker Change: There's quite a few quite a few.

Speaker Change: Opportunities that are that are showing up on a regular basis for us.

Speaker Change: Okay.

Travis J. Boone: You mentioned that you've won a couple of data center projects, and they seem a little smaller in size in general. I just want to talk about margins relative to your segment margin targets. Are they at the lower end or higher end, or just pretty much right within that target range? Oh, yes, you know.

Speaker Change: You mentioned that you've won a couple of data center projects and they you know they seem a little smaller in size in general just wanted to talk about my read relative to your segment margin targets are they.

Speaker Change: Are they at the lower end or higher and are just pretty much right within that target range.

Travis J. Boone: We have, you know, we have minimum bid margins that we hold steady on, and then, you know, different projects have different margins. Generally speaking, our data center projects provide good margins at the end of the job, and we've been able to perform them very well.

Speaker Change: Oh, yes, we have we have minimum bid margins that we that we hold steady on.

Speaker Change: And then different different projects there are different margins generally speaking our data center projects provide good.

Speaker Change: Good margins at the end of the job and we've.

Speaker Change: We've been able to perform them very well.

Speaker Change: Okay.

Travis J. Boone: Okay, and then finally, you mentioned the new Concrete Award in Florida for Costco. You also mentioned that this is just phase one. So can you talk about what the opportunities are with Costco and, maybe, in Florida in general?

Speaker Change: Okay, and then finally, you mentioned the new.

Speaker Change: The concrete award in Florida for Costco You also mentioned that this is just phase one but can you talk about what the opportunities are there with Costco and just may be in Florida in general.

Unknown Executive: General. Yeah, there'll be a large phase two on that project as well, that we're pursuing obviously and hope to bring in the door. There's opportunities with quite a few different companies, Costco and others that we did actually just win another Costco project in Texas yesterday.

Travis J. Boone: Yeah, there'll be a large phase two on that project as well that we're pursuing, obviously, and hope to bring in the door. But there's, you know, there's opportunities with quite a few different different companies, Costco and others that We did actually just win another Costco project in Texas yesterday. So we're continuing to add to the mix there, whether it's Costco or other clients that we work with on a regular basis, and we continue to add to our backlog.

Speaker Change: Yes, there'll be a there'll be a large phase II projects as well that we're that we're pursuing obviously in <unk> and <unk>.

Speaker Change: Hope to hope to bring in the door.

Speaker Change: But there's you know there's opportunities with with.

Speaker Change: Quite a few different.

Speaker Change: Different companies Costco and others that.

Speaker Change: We did actually just win another Costco project and.

Speaker Change: In Texas yesterday.

Unknown Executive: So we've, we're continuing to add into the, add into the mix there, whether it's Costco or other clients that we, that we work with on a regular basis. That, continue to add door back on.

Speaker Change: So we are continuing to add into the add into the mix there, whether its costco or or other clients that we that we work with on a regular basis.

Speaker Change: Yes.

Speaker Change: Continue to add to our backlog.

Min: Thank you.

Speaker Change: Okay. Thank you.

Unknown Executive: Thank you. Thanks, Min.

Ben: Thanks Ben.

David Storms: Again, if you have a question, you may press star the one to join the queue. Our next question will come from David Storms, a Stone Gate Capital. Please go ahead. And then, thank you for taking the questions.

Speaker Change: Again, maybe you have a question you May press Star then one to join the queue.

David Joseph Storms: Again, if you have a question, you may press star then 1 to join the queue. Our next question will come from David Storms of Stonegate Capital.

Speaker Change: Our next question will come from David storms with Stonegate capital. Please go ahead.

David Joseph Storms: Good morning. Thank you for taking my question. I just wanted to try to get a sense of how we should think about margins going forward. I know you mentioned a couple times that revenues are expected to ramp to the balance of 20.4 and up to 20.5. Should we expect there to be maybe a bit of a delay in margin expansion due to the catch-up that's going to need to take place in Hawaii and the Grand Bahamas?

David Joseph Storms: Good morning, and thank you for taking my questions.

Unknown Executive: For the day one incident. This one, they're trying to get a sense of how we should think about margins. I don't know what I know. You mentioned a couple times. That residents are expected to ramp through the balance of 1.4 and into 2.5.

David Joseph Storms: Good morning.

David Joseph Storms: One just wanted to try to get a sense of.

David Joseph Storms: How we should think about margins.

Speaker Change: Going forward I know you mentioned a couple of times that revenues are expected to ramp through the balance declined by 4%.

Unknown Executive: Could we expect there to be maybe a bit of delay in margin expansion due to the catch-up that's going to need to take place in Hawaii and the Grand Bahamas? Well, we do expect margins to continue to improve. Yeah, they're not going to just immediately spring out to those targets or branches that we kind of talked about. But we do expect, as the activity levels on those delayed projects come up and they're absorbing more of the cost, the indirect cost. We'll see gross margin improvements there. So, we'll, I would say that as you look forward into the projections, steady kind of progress on margins as opposed to just, you know, we'll kind of see in the immediate conclusion of the single digit in the double digit goals.

Speaker Change: Should we expect that more of a.

Speaker Change: A bit of delay in margin expansion.

Speaker Change: Uh huh.

Speaker Change: That's going to take place in Hawaii, and the Grand Bahamas.

Gordon Scott Thanisch: Well, we do expect margins to continue to improve. You know, they're not going to just immediately spring up to those target ranges that we kind of talked about, but we do expect as the activity levels on those delayed projects come up, and they're absorbing more of the cost, the indirect cost, then we'll see gross margin improvements there. So I would say that as you look forward into the projections, steady kind of progress on the margins as opposed to just, you know, kind of seeing the immediate realization of the single digit and the double digit goals.

Speaker Change: Well, we do expect margins to continue to improve there.

David Joseph Storms: I understand. That's very helpful. Thank you.

Speaker Change: We're not going to just.

Speaker Change: Immediately spring up to those target ranges that we've kind of talked about but.

Speaker Change: We do expect as the activity levels on those delayed projects come up and they are absorbing more of the cost the indirect cost we will see gross margin improvements there. So.

Speaker Change: I would say that as you look forward into the projections steady kind of progress on margins as opposed to just yeah.

Speaker Change: Kind of seeing.

Speaker Change: The immediate realization at the single digit in the double digit goals.

Gordon Scott Thanisch: And then just on the SG&A expenses, it sounded like a couple, a little bit of an increase year over year, maybe one time in nature. I know you mentioned there's going to be maybe a little more IT spending, and a little more expenses coming from business transitions. Should we expect that, you know, call it 11%, you know, low double-digit run rate, low double-digit SG&A expenses as well as revenues via fair run rate?

Unknown Executive: I wish that that's very helpful. Thank you.

Speaker Change: That's very helpful. Thank you and then just on the SG&A expenses it sounded like a couple.

Unknown Executive: And then just on the SUNE experiences, it sounded like a couple of the little bit of increase year over year, maybe one time in nature. That's why I know you mentioned was going to be maybe one of the IT's findings and a little more experiences come from business transitions.

Speaker Change: But a increase year over year, if anything onetime in nature.

Speaker Change: You mentioned it was going to be.

Speaker Change: <unk> spending a little more.

Speaker Change: Business transactions should we expect that call it 11%.

Unknown Executive: Should we expect that, you know, quarter, eleven percent, you know, low double digit, one rate, low double digit SUNE experiences as well, the credits be a fair one rate. I think that you'll see the percentage coming down is the revenue where I'm somewhat quickly, but I think the absolute transition kind of consistent with what. You saw on the second quarter to be a good assumption.

Speaker Change: Low double they can't run rate low double digit.

Speaker Change: G&A expenses as well as the cleanliness yep.

Speaker Change: Fair run rate.

Speaker Change: I think that Youll see that percentage come down as the revenue ramps more quickly, but I think that in absolute terms and kind of consistent with what you saw in the second quarter would be a good assumption.

Gordon Scott Thanisch: I think that you'll see the percentage coming down as revenue ramps more quickly, but I think that, in absolute terms, kind of consistent with what you saw in the second quarter would be a good assumption.

David Joseph Storms: And then just one more, due to some of the interruptions at your larger projects, do you expect any impact on, you know, call it the Port Everglades project or, you know, the Port Tampa project? Is there going to be any impact on those newer projects from those interruptions, do you think?

Unknown Executive: That's great. Thank you.

Speaker Change: Thank you and then just one more.

Unknown Executive: And then just one more.

Unknown Executive: Due to some of the interruptions at your larger projects, do you expect any impact on, you know, call it the Port Everglades project or, you know, the Port Tampa project? Is there any impact to those newer projects from those interruptions. You think? No, we don't; we don't foresee anything. Dave, those projects are starting off well and seem to be, seem to be on track. Don't, don't anticipate anything on coming up on that was the positive in the issues.

Speaker Change: Due to some of the interruptions at your.

Speaker Change: Larger projects do you expect any impact on you know.

Speaker Change: Call It the port Everglades project or the.

Speaker Change: The Port Tampa project is there going to be any impact to those newer projects from those interruptions do you think.

Travis J. Boone: No, we don't foresee anything, Dave. Those projects are starting off well and seem to be on track. I don't anticipate anything coming up on those that would cause the need.

Speaker Change: Oh, no. We don't we don't foresee anything Dave those projects are starting off well and seem to be seem to be on track don't don't anticipate anything.

Speaker Change: Coming up on those that causing any issues.

Speaker Change: That's all very helpful and I guess I'll add to that and say is it is it is construction there are a lot of variables in the fields and but we don't we don't anticipate anything.

Unknown Executive: I guess I'll add to that and say it is; it is construction. There are a lot of variables in the fields, and but we don't anticipate anything.

David Joseph Storms: I guess I'll add to that and say it is construction, there are a lot of variables in the fields, but we don't anticipate anything. Understandable. Thank you very much and good luck in the next quarter.

Speaker Change #102: Understood. Thank you very much and good luck on that.

Unknown Executive: Thank you very much, and good luck in the next quarter. Thanks, Dave.

Speaker Change: Next quarter.

Dave: Thanks, Dave instead.

David Joseph Storms: Thanks, Dave. Thanks, Dave.

Travis Boone: I think this concludes our question-and-answer session. I'd like to turn the conference back over to Travis Boone for any closing remarks.

Operator: And this concludes our question and answer session. I'd like to turn the conference back over to Travis Boone for any closing remarks. But before Travis...

Dave: And this concludes our question and answer session I'd like to turn the conference back over to Travis Boon for any closing remarks.

Unknown Executive: Before Travis says that, I realize that in our press release, the EPS is not listed there and just the EBITOR. So the EPS range that we're expecting is adjusted EPS is seven cents to twenty cents for twenty to four.

Gordon Scott Thanisch: And before Travis says that, I realize that in our press release, the EPS is not listed there, just the EBITDA. So the EPS range that we're expecting is adjusted EPS is $0.07 to $0.20 for 2024. Sorry, go ahead, Travis. Thanks, Scott.

Speaker Change: Before China says that and realize that in our press release, the EPS has not lessened their just the EBITDA. So the EPS range that were expecting is adjusted EPS of <unk> 24 24.

Unknown Executive: Sorry, go ahead, Chuck. Thanks, Scott.

Speaker Change: Sorry go ahead, Charles Thanks, Scott.

Travis J. Boone: Thank you, everyone, for joining us today. We appreciate your time. In closing, I just want to thank you, thank all of our employees who work really hard in our business every day to work safely and to work profitably and bring the best they can to work every day. Also, I want to thank our shareholders for their continued confidence in us. And I look forward to our continued growth in the second half of the year and going forward.

Unknown Executive: Thank you, everyone, for joining today. We appreciate your time.

Travis J. Boone: Thank you everyone for joining us today, we appreciate your time.

Travis Boone: In closing, I just want to thank you, thank all of our employees who are working really hard in our business every day to work safely and to work profitably and bring the best they can to work every day. Also, I want to thank our shareholders for their continued confidence in us, and I look forward to our continued growth in the second half of the year and going forward. Thanks everyone.

Speaker Change #101: In closing I just want to thank you. Thank all of our employees, who are working really hard in our business every day to work safely and to work profitably and bring the best they can to work every day.

Travis J. Boone: Also I want to thank our shareholders for their continued confidence in us.

Travis J. Boone: I look forward to our continued growth in the second half of the year and going forward. Thanks, everyone.

Speaker Change: Okay.

Unknown Executive: The conference has now concluded. Thank you for attending today's presentation.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Speaker Change #100: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Unknown Executive: You may now disconnect your line.