Q4 2024 Orion Group Holdings Inc Earnings Call
Operator: Good day and welcome to the Orion Group Holdings fourth quarter and full year 2024 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Good day and welcome to the Orion Group Holdings fourth quarter and full year 2024 conference call.
All participants will be in a listen only mode.
Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star then. Please note, this event is being recorded.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one on a touchtone phone.
Draw. Your question. Please press Star then two.
Note. This event is being recorded.
Margaret Boyce: I would now like to turn the conference over to Margaret Boyce, Investor Relations. Please go ahead.
Margaret Boy: I would now like to turn the conference over to Margaret Boy Investor Relations. Please go ahead.
Margaret Boyce: Thank you, Operator, and thank you all for joining us today to discuss Orion Group Holdings' fourth quarter and full year 2024 financial results. We issued our earnings release after market last night. It's available in the investor relations section of our website at oriongroupholdingsinc.com.
Speaker Change: Thank you operator, and thank you all for joining us today to discuss Orion Group Holdings fourth quarter and full year 'twenty 'twenty four financial result, we issued our earnings release after market last night. It is available in the Investor Relations section of our website at Orion Group Holdings.
Margaret Boy: <unk>, Inc. Dotcom.
Margaret Boyce: I'm here today with Travis Boone, Chief Executive Officer of Orion, and Scott Thanisch, Chief Financial Officer. On today's call, management will provide prepared remarks and then we'll open up the call for your questions.
Speaker Change: I'm here today with Travis Boone, Chief Executive Officer of Orion, and Scott Banish 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 law.
Margaret Boyce: 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 vary materially from those contemplated 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.
Speaker Change: Because 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.
Speaker Change: As contemplated 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.
Margaret Boyce: With that, I'd now like to turn the call over to Travis. Travis, please go ahead.
Speaker Change: [noise] ahead.
Travis Boone: Thank you, Margaret, and good morning, everyone, and thank you for joining our fourth quarter and full year 2024 conference call. I'll start with an overview of our fourth quarter results and market update, and then I'll turn it over to Scott to cover our financial results. It has been an incredible two years since we put our strategic plan into action. I am proud to say we did what we said we would do, and our focus on business development and discipline execution by our team is now delivering strong results. From the outset, our goal was to drive sustainable growth and profitability, enhance operational efficiency, and create long-term value for all our stakeholders.
Travis Boone: Thank you Margaret and good morning, everyone and thank you for joining our fourth quarter and full year 2024 conference call.
Speaker Change: Well I'll start with an overview of our fourth quarter results and market update and then I'll turn it over to Scott to cover our financial results.
Speaker Change: It has been an incredible two years since we put our strategic plan into action.
Speaker Change: Proud to say, we did what we said we would do and our focus on business development and disciplined execution by our team is now delivering strong results.
Speaker Change: From the outset, our goal was to drive sustainable growth and profitability enhance operational efficiency and create long term value for all our stakeholders.
Travis Boone: Today, we have not only met, but exceeded those objectives in many areas.
Speaker Change: Today, we have not only met but exceeded those objectives in many areas.
Travis Boone: to summarize our four-year performance. Revenue was up 12% to $796 million year-over-year. Gross profit improved 48% to $91 million. adjusted EBITDA increased 76% and adjusted EBITDA margin was up 200 basis points to 5.3%. Well, we have made great progress. We are far from finished. We still have work ahead to reach the profitability and growth that Orion is capable of achieving. Throughout 2025, we will continue to emphasize executing with predictable excellence, and we will be focused on growing our backlog to realize our planned growth in 2026. Most importantly, we have set ourselves up to address the huge market opportunity in front of us.
Speaker Change: To summarize our full year performance.
Speaker Change: Revenue was up 12% to $796 million year over year.
Speaker Change: Gross profit.
Speaker Change: <unk>, 48% to $91 million.
Speaker Change: Adjusted EBITDA increased 76% and.
Speaker Change: And adjusted EBITDA margin was up 200 basis points to five 3%.
Speaker Change: But we have made great progress we are far from finished we still have work ahead to reach the profitability and growth that Orion is capable of achieving.
Speaker Change: Throughout 2025, we will continue to emphasize executing with predictable excellence.
Speaker Change: And we will be focused on growing our backlog to realize our planned growth in 2026.
Speaker Change: Most importantly, we have set ourselves up to address the huge market opportunity in front of us.
Travis Boone: Over the past two years, we have assembled an outstanding team whose expertise, hard work, and commitment to safety have been the driving force behind our success. We appreciate all their efforts to make us a safer, stronger, and more profitable company. I've always said that winning high-value long-term projects with the right pricing is critical to driving profitability. And now we have better organization-wide discipline that it takes to successfully bid on large projects with the appropriate evaluation of risks and built-in contingencies. The contracts we were awarded throughout 2024 and the wins we announced in February reflect the quality, complexity, and diversity of the projects we can win.
Speaker Change: Over the past two years, we have assembled an outstanding team, whose expertise hard work and commitment to safety has been the driving force behind our success.
We appreciate all their efforts to make us a safer stronger and more profitable company.
I've always said that winning high value long term projects with the right pricing is critical to driving profitability.
Speaker Change: And now we have better organization wide discipline that it takes to successfully bid on large projects with the appropriate evaluation of risks and built in contingencies.
Speaker Change: The contracts, we were awarded throughout 2024, and the wins the wins, we announced in February reflect the quality complexity and diversity of the projects we can win.
Travis Boone: This gives us confidence that our backlog of quality projects will continue to grow. Our year-end backlog stood at $729 million. And over the past two years, our pipeline increased from $3 billion to $16 billion. The depth and breadth of these projects lets us be very selective in disciplining the projects we choose to pursue. Orion has greatly improved its reputation in our markets, and we are attracting new partners as well as strengthening our position with long-standing relationships. I can't emphasize enough how important it is to have the right partners with mutual trust to deliver complex projects.
Speaker Change: This gives us confidence that our backlog of quality projects will continue to grow.
Speaker Change: Our year end backlog stood at $729 million.
Speaker Change: And over the past two years, our pipeline increased from 3 billion to $16 billion.
Speaker Change: The depth and breadth of these projects lets us be very selective and disciplined in the projects we choose to pursue.
Speaker Change: But Ryan is greatly improved its reputation in our markets and we are attracting new partners as well as strengthening our position with longstanding relationships.
Speaker Change: I can't emphasize enough how important it is to have the right partners with mutual trust to deliver complex projects.
Travis Boone: I credit a lot of the momentum to our focus on business development, which was a key initiative that we started two years ago. We now have experienced leaders who are driving our growth. The marine market has some very favorable tailwinds. We continue to see great developments for 2025 and beyond, infrastructure projects, port expansion and maintenance, coastal rehabilitation, and downstream energy projects. We see a strong pipeline of opportunities in the Atlantic and Gulf regions. In the Pacific, we see opportunities for large Navy projects toward the end of the year into next year. There are very few marine contractors that have the skill, experience, and the logistical capacity to work in the Pacific as we do.
Speaker Change: I credit a lot of the momentum to our focus on business development, which was a key initiative that we started two years ago. We now have experienced leaders who are driving our growth.
Speaker Change: The marine market has some very favorable tailwind.
Speaker Change: We continue to see great developments for 2025 and beyond infrastructure projects toward expansion and maintenance Kosta rehabilitation and downstream energy projects.
Speaker Change: We see a strong pipeline of opportunities in the Atlantic and Gulf regions.
Speaker Change: In the Pacific, we see opportunities for large navy projects towards the end of the year into next year.
Speaker Change: There are very few marine contractors that have the skills experience and logistical capacity to work in the Pacific as we do.
Travis Boone: Based on Orion Concrete strong reputation, we have the name recognition that creates real currency in the marketplace. Concrete is no longer just a Texas concrete company. There are really no geographic limitations to where our concrete team can operate effectively with our reputation for quality work and our trusted relationships with Tier 1 contractors. Our reputation and partnerships are why we are building, or have completed, 35 data center projects to date for top hyperscalers and are building Costco's largest ever distribution center in Florida. We're winning work in multiple states with our best partners. These partnerships with world-class construction companies and our ability to deliver are important factors in most of our recent project wins.
Speaker Change: Based on Orion concrete strong reputation we have the name recognition that creates real currency in the marketplace com.
Speaker Change: Concrete is no longer just a Texas concrete company.
Speaker Change: There are really no geographic limitations to where our concrete team can operate effectively with our reputation for quality work in our trusted relationships with tier one contractors.
Speaker Change: Our reputation and partnerships are why we are building or have completed 35 data center projects to date for top Hyperscale and are building costco's largest ever distribution center in Florida.
Speaker Change: We are winning work in multiple states with our best partners.
Speaker Change: These partnerships with world class construction companies and our ability to deliver our important factors in most of our recent project wins.
Travis Boone: We just completed a 43-story high-rise project for Hanover Company, who gave us very positive reviews and have already awarded us their next project.
Speaker Change: We just completed a 43 story high rise project for Hanover Company, who gave us very very positive reviews and have already awarded us their next project.
Travis Boone: Another example is Laredo, Texas, which is the largest inland port on the border. Last year, we were awarded a large project and based on our strong performance, we recently won two more projects in Laredo. We have established great partnerships, and this has led to significant repeat business, which is always our goal. We remain confident that we can continue to grow our concrete business. We see a lot of untapped market opportunity as well as projects that had been dormant and are now moving forward. Concrete is a great turnaround story. The business has found its footing and it's really starting to move.
Speaker Change: Another example is Laredo, Texas, which is the largest inland port on the border.
Speaker Change: Last year, we were awarded a large project and based on our strong performance. We recently won two more projects in Laredo.
Speaker Change: We've established great partnerships and this has led to significant repeat business, which is always our goal.
Speaker Change: We remain confident that we can continue to grow our concrete business, we see a lot of untapped market opportunity as well as projects that had been dormant and are now moving forward.
Speaker Change: Concrete is a great turnaround story the business has found its footing and it's really starting to move this is what I envisioned when I took this job I knew the issues are fixable now it's not just healthier it's driving.
Travis Boone: This is what I envisioned when I took this job. I knew the issues were fixable. Now it's not just healthier, it's thriving.
Travis Boone: Finally, we have fielded a lot of questions related to the new administration in D.C. Mostly questions about tariffs and government spending pauses. We're not anticipating negative impacts to any projects or pursuits. Since the middle of last year, we were planning for potential steel tariffs during the bidding process and have mitigated our minimal exposure. We haven't had any projects impacted by government spending changes and don't anticipate changes to our pipeline or our opportunities. Additionally, the appetite for increased energy projection in oil and gas will likely drive additional capital project opportunities in the Gulf. The political landscape is quite favorable for us to continue our plans for growth in the years ahead.
Speaker Change: Finally, we have fielded a lot of questions.
Speaker Change: <unk> to the new administration in DC.
Speaker Change: Mostly questions about tariffs and government spending pauses.
Speaker Change: Not anticipating negative impacts to any projects where pursuits.
Speaker Change: Since the middle of last year, we were planning for potential steel tariffs during the bidding process and have mitigated our minimal exposure.
Speaker Change: We haven't had any projects impacted by government spending changes and don't anticipate changes to our pipeline or our opportunities.
Additionally, the appetite for increased energy projection in oil and gas will likely drive additional capital project opportunities in the Gulf.
Speaker Change: The political landscape is quite favorable for us to continue our plans for growth in the years ahead.
Travis Boone: Looking forward, our team is focused on making investments that will help us capture and deliver the large volume of projects in our pipeline of opportunities. The key metric to watch this year is the increase in backlog. This will give an indication of future revenue. We expect to make continued progress improving our financial performance and are focused on growing our backlog through the year. As we enter 2025, I am confident in our strong foundation, the exceptional capabilities of our people, and their total commitment to both quality and safe execution. As I've said before, we're planning to have a big year in 2026.
Speaker Change: Looking forward our team is focused on making investments that will help us capture and deliver the large volume of projects in our pipeline of opportunities.
Speaker Change: The key metric to watch this year is the increase in backlog there.
Speaker Change: This will give an indication of future revenue we.
Speaker Change: We expect to make continued progress improving our financial performance and our focus on growing our backlog through the year.
Speaker Change: As we enter 2025 I am confident in our strong foundation, the exceptional capabilities of our people and their total commitment to both quality and safe execution.
Speaker Change: As I've said before we're planning to have a big year in 2026, I will now turn it over to Scott to discuss our financial results Scott.
Scott Thanisch: I'll now turn it over to Scott to discuss our financial results, Scott. Thanks, Travis, and good morning, everyone. Our fourth quarter was a strong contributor to our full year results. Revenue increased 7.6% to $217 million. Adjusted EBITDA grew 15.3% to $17.1 million. and we generated $13.4 million of cash flow from operations. As we indicated early in 2024, the Pearl Harbor and Grand Bahama projects ramped up in both the third and fourth quarters, driving improved second half results. For the full year, we generated $41.9 million of adjusted EBITDA and adjusted EPS of $0.15 per share. squarely in our 2024 earnings guidance.
Scott Banish: Thank you Travis and good morning, everyone.
Scott Banish: Our fourth quarter was a strong contributor to our full year results.
Scott Banish: <unk> revenue increased seven 6% to $217 million.
Scott Banish: Adjusted EBITDA grew 15, 3% to $17 1 million and.
Scott Banish: And we generated $13 $4 million of cash flow from operations.
Scott Banish: As we indicated early in 2024, the Pearl Harbor in Grand Bahama projects ramped up in both the third and fourth quarters driving improved second half results.
Scott Banish: For the full year, we generated $41 9 million of adjusted EBITDA and adjusted EPS of <unk> 15.
Scott Banish: Per share.
Scott Banish: Squarely in our 2024 earnings guidance.
Scott Thanisch: While our full year revenue of $796 million was lower than our expected revenue range, this was due to the timing of execution of projects, not softness in our market. We continue to be excited about our growth opportunities as evidenced by the significant increase in backlog plus jobs awarded so far this year. In the fourth quarter, marine revenue was up 6.5% and concrete revenue increased 9.8%. As Travis mentioned, today our concrete business is now healthy and growing after implementing our disciplined bidding standards and refined business development. While we see our concrete opportunity expanding, our opportunity in marine continues to be immense and will be the major driver in the growth ahead.
Scott Banish: While our full year revenue of $796 million with lower than our expected revenue range. This is due to the timing of execution of projects not softness in our markets.
Scott Banish: We continue to be excited about our growth opportunities as evidenced by the significant increase in backlog plus jobs awarded so far this year.
Scott Banish: In the fourth quarter Marine revenue was up six 5% and concrete revenue increased nine 8%.
Travis Boone: As Travis mentioned today, our concrete business is now healthy and growing after implementing our disciplined bidding standards and refined business development approach.
Travis Boone: While we see our concrete opportunity expanding our opportunity in marine continues to be immense and will be the major driver in the growth ahead.
Scott Thanisch: Consolidated fourth quarter gross profit margin increased to $30.3 million, or 14% of revenue, up from $23 million, or 11.4% of revenue in the same period last year. The 260 basis point increase in consolidated gross margins reflect both improved pricing and improved execution in both sectors. SG&A expenses were $21.6 million, up from $17.2 million in the comparable period. As a percentage of total contract revenues, SG&A expenses increased to 9.9% from 8.5%. Compensation, IT implementations, business development spending, and legal expense largely accounted for the increase in SG&A expenses. Turning to profitability, adjusted net income was $6.4 million or $0.16 per diluted share in the fourth quarter.
Travis Boone: Consolidated fourth quarter gross profit margin increased to $33 million or 14% of revenue.
Travis Boone: Up from $23 million or 11, 4% of revenue in the same period last year.
Travis Boone: The 260 basis point increase in consolidated gross margins reflect both improved pricing and improved execution in both segments.
Travis Boone: SG&A expenses were $21 6 million up from $17 $2 million in the comparable period.
Travis Boone: As a percentage of total contract revenues SG&A expenses increased to nine 9% from eight 5%.
Travis Boone: Compensation implementations business development spending and legal expense largely accounted for the increase in SG&A expenses.
Travis Boone: Turning to profitability adjusted net income was $6 4 million or <unk> 16 per diluted share in the fourth quarter.
Scott Thanisch: compared to adjusted net income of $2.3 million or $0.07 per diluted share in the prior year period. The fourth quarter net income included $400,000 or one cent per diluted loss per share of adjusted items. Gap net income for the fourth quarter of 2024 was $6.8 million or 17 cents per diluted share. EBITDA for the fourth quarter increased to $14.9 million and adjusted EBITDA grew to $17.1 million. Adjusted EBITDA margin improved 60 basis points to 7.9%, up from 7.3% last year. During the fourth quarter, adjusted EBITDA margin in the marine segment was 9.2% compared to 8.4% last year.
Travis Boone: Compared to adjusted net income of $2 3 million or <unk> <unk> per diluted share in the prior year period.
Travis Boone: The fourth quarter net income included.
Travis Boone: $400000 or <unk> <unk> per diluted loss per share of adjusted items.
Travis Boone: GAAP net income for the fourth quarter of 2024 was $6 $8 million or <unk> 17 per diluted share.
Travis Boone: EBITDA for the fourth quarter increased to $14 9 million and adjusted EBITDA grew to $17 1 million.
Travis Boone: Adjusted EBITDA margin improved 60 basis points to seven 9% up from seven 3% last year.
Travis Boone: During the fourth quarter adjusted EBITDA margin in the Marine segment was nine 2% compared to eight 4% last year and.
Scott Thanisch: and adjusted EBITDA margin in our concrete segment was 5.3% consistent with the prior year period. As a reminder, as we continue to build scale in our business, our medium-term goal is to generate adjusted EBITDA margins in the low double digits for the marine segment and high single digits for our concrete.
Travis Boone: And adjusted EBITDA margin in our concrete segment was five 3% consistent with the prior year period.
Travis Boone: As a reminder, as we continue to build scale in our business. Our medium term goal is to generate adjusted EBITDA margins in the low double digits for the marine segment and high single digits for our concrete segment.
Scott Thanisch: Moving on to bidding metrics. In the fourth quarter, we bid on approximately $994 million worth of opportunities, of which we won $256 million. This resulted in a contract value-weighted win rate of 25.7% and a book-to-bill ratio of 1.18 times in the fourth quarter. We expect to continue to see progress capturing our opportunities, and given the timing of project wins in particular quarters, there may be some variability in our win rate from one quarter to the next. As of December 31st, our backlog was $729.1 million, compared to $690.5 million at the end of the prior quarter.
Travis Boone: Moving onto bidding metrics in the fourth quarter, we bid on approximately $994 million worth of opportunities of which we have one $256 million.
Travis Boone: This resulted in a contract value weighted win rate of 25, 7% and a book to Bill ratio of 1.18 times in the fourth quarter.
Travis Boone: We expect to continue to see progress capturing our opportunities and given the timing of project wins in particular quarters. There may be some variability in our win rate from one quarter to the next.
Travis Boone: As of December 31, our backlog was $729 1 million.
Travis Boone: Compared to $698 5 million at the end of the prior quarter.
Scott Thanisch: and $762.2 million at the end of the prior year. Breaking out our fourth quarter backlog, $582.8 million was related to our marine sector. and another $146.3 million was related to our concrete. As Travis mentioned, we are off to a strong start in 2025, and our end-of-year backlog plus awards so far this year is $977 million, up 16% over the prior year. The business generated $13.4 million of cash flow from operations during the fourth quarter, compared to $45.7 million in the fourth quarter of 2023. Looking at the full year, cash flow from operations in 2024 was $12.7 million, compared to $17.2 million in the prior year.
Travis Boone: And $762 $2 million at the end of the prior year.
Travis Boone: Breaking out our fourth quarter backlog of $582 $8 million was related to our marine segment.
Travis Boone: And another $146 3 million was related to our concrete segment.
Travis Boone: As Travis mentioned, we're off to a strong start in 2025, and our end of year backlog plus awards. So far this year is $977 million up 16% over the prior year.
Travis Boone: The business generated $13 $4 million of cash flow from operations during the fourth quarter compared to $45 7 million in the fourth quarter of 2023.
Travis Boone: Looking at the full year cash flow from operations in 2024 was $12 7 million compared to $17 2 million in the prior year.
Scott Thanisch: Cash flow can vary from quarter to quarter due to the timing of project mobilization and completion. We ended the fourth quarter with $28.3 million in cash. Total debt outstanding was $23.2 million, ending in a net cash position for the second consecutive quarter. We had no outstanding borrowings under our revolving credit facility at the end of the quarter.
Travis Boone: Cash flow can vary from quarter to quarter due to the timing of project mobilization and completion.
Travis Boone: We ended the fourth quarter with $28 $3 million in cash.
Total debt outstanding was $23 $2 million.
Travis Boone: Ending in a net cash position for the second consecutive quarter.
Travis Boone: We had no outstanding borrowings under our revolving credit facility at the end of the quarter.
Scott Thanisch: On March 4th, we executed an amendment to our credit agreement with Whitehouse. This amendment reduces our term loan and revolver pricing by 50 basis points. provides greater operational and administrative flexibility, including less restrictive financial covenants. and extends the maturity date of our agreement to May 15th of 2028. These improvements were possible because our lenders recognize our enhanced credit profile as we continue to execute our strategic plan.
Travis Boone: On March 4th we executed an amendment to our credit agreement with White Oak.
Travis Boone: This amendment reduces our term loan and revolver pricing by 50 basis points.
Travis Boone: Provides greater operational and administrative flexibility, including less restrictive financial covenants and.
Travis Boone: And extends the maturity date of our agreement to May 15th of 2028.
Travis Boone: These improvements were possible because our lenders recognize our enhanced credit profile as we continue to execute our strategic plan.
Scott Thanisch: Over the last several months, we have made considerable progress on our ERP initiative. Beginning in January, we have started using our new IT tools and processes for our operations and back office. As a reminder, we have been implementing new project management systems and new procurement. We've also been migrating our business segment. to be on the same financial platform, which will give us clear line of sight across our entire business. These tools will share information and provide insight into the progress of our project. which will greatly improve our oversight and effective management of our projects on the As our operational improvements gain traction, we expect to generate efficiencies that will enable the continued growth of our business while benefiting from operating leverage in our fix.
Travis Boone: Over the last several months, we have made considerable progress on our ERP initiatives.
Travis Boone: Beginning in January we have started using our new tools and processes for our operations and back office.
Travis Boone: As a reminder, we have been implementing new project management systems, and new procurement tools.
We've also been migrating our business segments.
Travis Boone: To be on the same financial platform, which will give us clear line of sight across our entire business.
Travis Boone: These tools will share information and provide insight into the progress of our projects, which will greatly improve our oversight and effective management of our projects on the ground.
Travis Boone: As our operational improvements gained traction we expect to generate efficiencies that will enable the continued growth of our business, while benefiting from operating leverage in our fixed cost.
Scott Thanisch: Looking forward, we're excited by our improving performance and expanding pipeline. As Travis mentioned, a key indicator of our continued execution of our strategic plan will be our backlog growth in 2025. which will include winning projects for delivery in 2025 and beyond. For the full year 2025, we expect revenue to be in the range of $800 million to $850 million with adjusted EBITDA in the range of $42 million to $46 million. This translates to a range of $0.11 to $0.17 for adjusted EPS. We'll also make investments to prepare for the growth ahead. We expect 2025 CapEx to be in the range of $25 million to $35 million as we acquire equipment we will use to take advantage of our large pipeline of operations.
Travis Boone: Looking forward, we're excited by our improving performance and expanding pipeline.
Travis Boone: As Travis mentioned, a key indicator of our continued execution of our strategic plan will be our backlog growth in 2025.
Travis Boone: Which will include winning projects for delivery in 2025 and beyond.
Travis Boone: For the full year 2025, we expect revenue to be in the range of $800 million to $850 million with adjusted EBITDA in the range of 42 million to $46 million.
Travis Boone: This translates to a range of 11% to 17 for adjusted EPS.
Travis Boone: We will also make investments to prepare for the growth ahead.
Travis Boone: We expect 2025 capex to be in the range of $25 million to $35 million as we.
Travis Boone: Wire equipment, we will use to take advantage of our large pipeline of opportunity.
Scott Thanisch: As an organization seeking to establish a firm foundation for future growth, a lot of the heavy lifting is behind it. While there is still more to do, we're looking forward to more progress in 2025, and we're very excited for the years ahead.
Travis Boone: As an organization seeking to establish a firm foundation for future growth a lot of the heavy lifting is behind us.
Travis Boone: While there is still more to do we're looking forward to more progress in 2025, and we're very excited for the years ahead.
Operator: And now I'll open up the call for your questions. We will now begin the question and answer session. To ask a question, you may press star and 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing. If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2.
Travis Boone: And now I'll open up the call for your questions.
Travis Boone: We will now begin the question and answer session.
Travis Boone: To ask a question you May Press Star then one on your Touchtone phone.
Travis Boone: If youre using a speakerphone please pick up your handset before pressing the cool.
Travis Boone: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Operator: At this time, we will pause momentarily to assemble our wrap.
Travis Boone: At this time, we will pause momentarily to assemble our alcohol.
Travis Boone: Yeah.
Aaron Spychalla: The first question today comes from Aaron Spychalla with Craig Hallam. Please go ahead. Yeah, good morning, Travis and Scott. Thanks for taking the questions. You know, first for me, can you just give some some color on kind of the revenue shortfall in the fourth quarter versus guidance, you know, some of the impacting items there.
Speaker Change: The first question today comes from Aaron <unk> with Craig Hallum. Please go ahead.
Speaker Change: Yes, good morning, Travis and Scott Thanks for taking the questions.
Speaker Change: So first for me can you just give some color on kind of the revenue shortfall in the fourth quarter versus guidance. Some of the impacting items. There and then just talk about confidence and visibility you have into the 2025 guidance.
Aaron Spychalla: And then just, you know, talk about confidence and visibility you have into the 2025 guidance, you know, given backlog and kind of recent order activity. And then there's also if you could touch on, you know, you talked about an extension, you know, timing of the marine segment. Just want to confirm that that's just, you know, typical timing and you're not really seeing much, you know, project extensions there as well.
Speaker Change: Given backlog and kind of recent order activity and then just also if you could touch on.
Speaker Change: You know you've talked about an extension.
Speaker Change: Timing of the marine segue.
Speaker Change: Segment, just wanted to confirm that that's just typical timing and you're not really seeing much project extensions there as well thanks.
Travis Boone: Morning, Aaron. Sure. Starting off with the question on revenue, I'd say, you know, we've been saying kind of from day one, we've been focused on profitability and really getting the business healthy and that the revenue based on the pipeline that we have in front of us, the revenue would come. And so we've been really focused on getting the business healthy, getting the business profitable and the revenue will come. We, you know, as far as kind of the shortfall last year, there was, we started talking early in the year about a couple of major projects that there were some, some slippages primarily on our Hawaii project.
Shar: Good morning Shar.
Shar: Starting off with the question on revenue.
Shar: I'd say, we've been saying kind of from day, one we've been focused on profitability.
Shar: And really getting the business healthy and that the revenue based on the pipeline that we have in front of us the revenue would come and so we've been really focused on getting the business healthy given the business profitable and in the revenue revenue will come.
Shar: As far as kind of the shortfall last year. There was we started talking early in the year about.
Shar: A couple of major projects that there were some some slippage is primarily on our Hawaii project.
Travis Boone: Some of some of the, the revenue that we thought was gonna come in last year ended up slipping into this year from twenty four into twenty five to be clear. And so there was some things, you know, slid to the right and not all of it came in last year. Like, we were thinking that it would initially. So, no, nothing vanished. It just just moved a little to the right into this year. So, we're, we're feeling still feeling confident about about twenty, twenty five feeling good about what we're, what we're, what we have going and the opportunities in the future.
Shar: Some of the revenue that we thought was going to come in last year ended up slipping into this year.
Shar: 24% to $25 to be clear.
Shar: So there were some things slipped to the right and not all of it came in last year like we were thinking that it would initially so.
Shar: No.
Shar: Nothing vanished, just just moved to a little to the right into this year. So we're feeling still feeling confident about about 2025 feeling good about what we're what we're what we have gone and the opportunities in the future that's going to lead to bigger growth in 2026.
Travis Boone: That's gonna lead to bigger growth in twenty, twenty six. As we said, you know, we're gonna be really focused on building our backlog this year, which will turn into revenue in twenty six.
Shar: We've said, we're going to be really focused on building our backlog this year.
Shar: Which will turn into revenue.
Shar: 26.
Aaron Spychalla: Alright, thanks for that.
Speaker Change: Alright, Thanks for that and then maybe second on the pipeline expansion to $16 billion can you just kind of talk about some of the key drivers of expansion. There and then maybe just touch on the bidding environment, how thats been noise with just some of the broader noise in the market obviously, good profitability this quarter, but.
Travis Boone: And then maybe second, you know, on the pipeline expansion to $16 billion, can you just kind of talk about some of the key drivers of expansion there? And then, you know, maybe just touch on the bidding environment, how that's been with with just some of the broader noise in the market, obviously good profitability this quarter, but touch on that, that'd be great. Yeah, the pipeline continues to grow as more opportunities kind of come into view for us. So it's continuing to look like, you know, a really good environment for us in both marine and concrete.
Shar: But just if you could touch on that that'd be great.
Speaker Change: Yes, the pipeline continues to grow.
Shar: As more opportunities kind of come into view for us.
Shar: So its continuing to look like.
Shar: Yeah.
Shar: A really good environment for us in both marine and concrete.
Travis Boone: You know, data centers are, there's, there's more, seems like everyday opportunities on the data center side of things. We've, we've been bidding on and winning more and more of those, those projects. You know, there's no less urgency with the Navy efforts in the, in the Pacific with China deterrence, that's continuing to be a strong, strong push for the Navy. Albeit some of that is going to be in 26 and as opposed to 25, like we thought a year ago. And then just generally speaking in the marine side of things, opportunities are, are, are strong. Lots of bidding, bidding efforts going on.
Data centers are there is.
Shar: There's more.
Shar: It seems like everyday opportunities on the data center side of things.
Shar: We've been bidding on and winning more and more of those those projects.
Shar: There is no less urgency with the Navy.
Shar: Efforts in the in the Pacific with China, Deterrents, that's continuing to be a a.
Shar: Strong strong push for the Navy.
Shar: Albeit some of that is going to be <unk> 26, and as opposed to 25 like we thought a year ago.
Shar: And then just generally speaking in the marine side of things opportunities are our strong lots of bidding bidding efforts going on.
Travis Boone: You know, we have, have been winning, winning some great work and, you know, we're, we're winning with, with good margins and feel, feel really good about the health of our, of our backlog. It's, it's all going to be, you know, strong contributors to 25 and 26. Yeah, with the pipeline expanding the way it is, it's, we're expecting that there's going to be a nice margin environment. We can be pretty selective on which projects we pursue and with a good deal of market tailwinds for us, we expect to see a good margin environment in 25 and beyond.
Shar: <unk> been winning winning some great work in.
Shar: We're winning with with good margins and feel feel really good about the health of our of our backlog.
Shar: It's all going to be strong contributors to 25 and 26.
Shar: With the pipeline expanding the way it is.
Shar: <unk> that theres going to be a nice margin environment, we can be pretty selective on which projects, we pursue and with.
Shar: A good deal of of market tailwind for US we expect to see a good margin environment in 'twenty five.
Travis Boone: All right, thanks for that. And then maybe last for me, you know, you touched a little bit on the Navy opportunity. Can you just, you know, give us an update there, with everything that's going on at, you know, at a federal level from from a funding standpoint, you know, how is that opportunity shaping up? Sounds like it's, you know, maybe extending a little bit. But when you talk about, you know, a transformational year in 2026, just want to make sure kind of level setting expectations on, you know, winning some of that business as it pertains to 2026.
Speaker Change: Alright, Thanks for that and then maybe last for me you touched a little bit on the Navy opportunity can you just give us an update there with everything thats going on at a federal level from from a funding standpoint, how is that opportunity shaping up it sounds like it's maybe extending a little bit, but when you talk about a transformational year in 2026.
Shar: To make sure kind of level setting expectations on.
Shar: Winning some of that business as it pertains to 2026.
Travis Boone: Yeah, we're continuing to see signs that the Navy is really continuing to, there's no slowing down or change of direction with new administration with what's happening in the Pacific. The Navy is definitely showing signs that there's a lot of work to be done in the Pacific and we're expecting, you know, there's a fair amount of activity on the MAC procurements, multiple work construction contract procurements in the Pacific and, you know, we expect that to be turned into projects in the next year or so.
Speaker Change: Yes, we're continuing to see signs that the Navy is really continuing to there's no slowing down or change of direction with with new New administration with what's happening in specific.
Speaker Change: The Navy is definitely showing signs that there's a lot of work to be done in the Pacific and <unk>.
Speaker Change: We're expecting.
Speaker Change: A fair amount of activity on them.
Speaker Change: Mac procurements, multiple where construction contract procurements in the Pacific and.
Speaker Change: We expect that to be turned into projects in the next year or so.
Aaron Spychalla: All right, thanks for taking the questions.
Speaker Change: Alright, thanks for taking the questions I'll turn it over.
Operator: I'll turn it over. Thanks, Aaron.
Eric: Thanks, Eric.
Julio Romero: The next question comes from Julio Romero with Sidoti & Co., please go ahead. Thanks. Good morning, Travis and Scott. I wanted to start on the gross margin you posted at 14%. I think that's the strongest quarterly gross margin you've posted in about eight years or so. Just if you could talk about what are the key drivers of that margin, and do you think you can see leverage on the gross margin line once you see additional volumes flow through on the marine side?
Speaker Change: The next question comes from Julio Romero with Sidoti <unk> Co. Please go ahead.
Eric: Thanks, Good morning, Travis Scott.
Wanted to start on the 14th on the gross margin you posted a 14% I think that's the strongest quarterly gross margin you've posted in about eight years or so just if you could talk about what are the key drivers of that margin and do you think you can see leverage on the gross margin line. Once you see additional volumes flow through on the marine side.
Travis Boone: Yeah, good morning, Julio. I'll start, and then Scott can take it. You know, as far as, you know, we've been talking, you know, since we got here a couple years ago about really working toward having more improved margins, building the health of our backlog, and we've been doing that, and you're starting to see it in our numbers. You know, that's quite a few different projects delivering on the margin that we've been, you know, winning on these projects, whether it's marine or concrete. Both segments perform pretty well and brought a lot in the last quarter that helped the profitability.
Speaker Change: Yeah. Good morning, Julio I'll start and then Scott can take it as.
Eric: As far as.
Eric: We've been talking since since we got here a couple of years ago about really working toward having more improves improve margins building the health of our backlog and we've we've been doing that and you're starting to see it in our in our numbers.
Eric: That's quite a few different projects delivering on the margin that we've been.
Eric: Winter on these projects, whether its marine or concrete both both segments performed pretty well and brought a lot in the last.
Eric: And the last quarter that helps helps the profitability.
Scott Thanisch: Yeah, and just further on that, you know, we've talked for a while about how making sure that we're priced appropriately, and we factored in contingency for risk on projects is important to making sure that we can execute them well. And so, you know, you see a combination of those two factors in the fourth quarter, both better pricing at the start in the bidding process, as well as execution that's driven by, you know, our teams and our tools, utilizing a better plan with more contingency, and therefore able to deliver those projects to our customers better than our bid margins.
Eric: And just further on that we've talked for a while about how.
Eric: Making sure that we're priced appropriately and we factored in contingency for risk on projects is important to making sure that we can execute well and so you see a combination of those two factors in the fourth quarter, both better pricing at the start in the bidding process as well as execution.
Eric: It's driven by.
Eric: Our teams and our tools.
Eric: Utilizing a.
Eric: Plan with more contingency in and therefore, we're able to deliver those projects to our customers.
Eric: Better than our bid margins.
Scott Thanisch: Got it. And I guess just, you know, I'm hearing better pricing, better execution. If you could just touch on the leverage aspect, you know, can these margins sustain and perhaps grow on the gross margin line as you see increased sales? Yeah, there's there's opportunity for us to increase gross margins through, you know, better equipment absorption, better labor absorption, as we continue to expand the business and grow our scale. The tools that we're putting in place for project management are also going to help us to drive those efficiencies. So we do see, you know, a trend in our business of.
Eric: Got it and then I guess, just you know I'm hearing better pricing and better execution.
Eric: You could just touch on the leverage aspect can these margins sustain and perhaps grow on the gross margin line as you.
Eric: The increased sales.
Eric: Yes, there is there is opportunity for us to increase gross margins through.
Eric: Bidder equipment absorption better labor absorption as we continue to expand the business and grow our scale the.
The tools that we're putting in place for project management.
Eric: Also going to help us to drive those efficiencies. So we do see.
Eric: Trends in our business of.
Julio Romero: improving our gross margins through leveraging those operational efficiencies as well. Got it. That's very helpful.
Eric: Improving our gross margins through leveraging those operational efficiencies as well.
Eric: Got it that's very helpful.
Scott Thanisch: Um, you know, maybe thinking about better equipment absorption. Just wanted to ask about the CapEx guidance, the 25 to 30, $35 million range. Just talk about what growth projects are embedded in there. Yeah, so, you know, we've talked about our typical maintenance CapEx level being about $10 to $15 million a year. And so the incremental CapEx in our guidance is really to acquire equipment that's going to help us with some of the projects that we see coming, whether that's projects in the Pacific for the Navy or projects through the Gulf and the Atlantic Coast. It's a little bit different by project as to what that equipment might look like, but it's primarily going to be marine construction.
Eric: Maybe thinking about better equipment absorption.
Speaker Change: Just wanted to ask about the Capex guidance, the 25 to 30 $35 million range.
Speaker Change: Just talk about what growth projects are embedded in there.
Speaker Change: Yes, so we've talked about our typical maintenance capex level being about 15, 2% to $50 million a year.
Speaker Change: So the incremental capex in our guidance is really too.
Speaker Change: Acquire equipment, that's going to help us with some of the projects that we see coming.
Speaker Change: Whether that's projects and specific for the navy or projects through the Gulf and the Atlantic Coast.
Little bit different by project as to what that equipment might look like but it's primarily going to be marine construction equipment.
Scott Thanisch: Okay, got it.
Speaker Change: Okay got it and last one for me would just be thinking about the backlog.
Scott Thanisch: And last one for me would just be, you know, thinking about the backlog. You mentioned that was the key metric to watch as an indicator of future revenue. Just how would you have us think about the cadence of backlog growth as we progress through the quarters throughout 2025, especially as your sales mix is shifting to larger projects with longer lead times in March? Yeah, I mean, it's all dependent on when we have the opportunities, right? So I don't know that we have a good view of exactly how it's going to play out through the year.
Speaker Change: You mentioned that was the key metric to watch as an indicator of future revenue.
Speaker Change: Would you have us think about the cadence of backlog growth as we progress through the quarters throughout 2025, especially as your sales mix is shifting to larger projects with longer lead times and marine.
Speaker Change: Yes.
Speaker Change: It's all dependent on when when we have the opportunity is right. So I don't I don't know that we have a good view of exactly how it's going to play out through the year. What I know is where we've had a really strong first quarter already and.
Scott Thanisch: What I know is we've had a really strong first quarter already, and the opportunities continue to come in. So, as far as cadence goes, I don't know if I have a great answer for you, but I expect it to be a strong year of building backlog throughout the year. Yeah, and typically our concrete jobs have a quicker burn, and we've had a nice number of concrete wins here at the beginning of the year. Those are going to be mostly 25 backlog marine jobs with longer project times. And we expect a lot of those opportunities to come later in the year.
Speaker Change: The opportunities continue to come in so.
Speaker Change: As far as cadence goes I don't know if I have a great answer for you, but I expect it to be a strong year of building backlog.
Speaker Change: Throughout the year.
Speaker Change: And typically our concrete jobs have a quicker burn and we've had.
A nice number of concrete wins here at the beginning of the year those are going to be mostly 25 backlog marine jobs with longer project times.
Speaker Change: And we expect a lot of those.
Speaker Change: Opportunities to come later in the year, so as we build up the marine it'll be a little more longer dated into 26 and beyond.
Scott Thanisch: So, as we build up the marine, it'll be a little more longer dated into 26 and beyond.
Julio Romero: Great. I'll pass it on. Thanks very much. Thanks Julio. Thanks.
Speaker Change: Great I'll pass it on thanks very much.
Speaker Change: Okay. Thanks.
Operator: As a reminder, if you have a question, please press star and 1 to be joined into the question queue.
Speaker Change: As a reminder, if you have a question. Please press star then one to be joined into the question queue.
Brent Thielman: The next question comes from Brent Thielman with DA Davidson. Please go ahead. Great, thanks. Good morning, Travis, Scott, I guess. Just back on the CapEx, the step up here in 2025, does that get funded out of cash flow? I'm looking at interest costs, looks like that's going to come down this year, so trying to figure out. I expect. Yeah, we do expect that largely to be funded out of our operating cash flow. That's been our goal really is to fund our own growth through our operational improvements. So that's how we anticipate most of that CapEx being spent.
Speaker Change: The next question comes from Brent Thielman with D. A Davidson. Please go ahead.
Brent Thielman: Great. Thanks.
Speaker Change: Morning, Travis Scott I guess.
Speaker Change: You just back on the Capex the step up here in 2020.
Speaker Change: Does that get funded out of cash.
Speaker Change: Cash flow.
Speaker Change: Im looking at interest cost looks like that's going to come down this year, so I'm trying to figure out.
Speaker Change: Do you expect to fund it.
Speaker Change: Yes, we do expect that largely to be funded out of our operating cash flow.
Speaker Change: Our goal really is to fund our own growth through our operational improvements.
Speaker Change: That's how we anticipate most of that Capex being spent.
Scott Thanisch: We do have a good relationship with our lenders, and they've indicated a willingness to provide us capital if we had the opportunity to employ and so that's always an option, but we do expect to largely fund that from operating cash. Yeah, so could infer you're going to see a pretty good step up in cash from operations this year. And they've got the big projects to choose. That's right. Yep. Okay.
Speaker Change: We do have a good relationship with our lenders and they've indicated a willingness to provide us capital. If we had the opportunity to employ more and so that's always an option, but we do we do expect to largely fund that from operating cash flow.
Speaker Change: Okay.
Speaker Change: Could infer youre going to see a pretty good step up in cash from operations. This year I know you've got the big projects contributing to that.
Speaker Change: It sounds like that's right stepping up.
Scott Thanisch: And then... I guess just wanted to get a sense around the build-up to the outlooks for the year. I know you've got seasonality in the first quarter and the first half, which is always the case. But, you know, it sounds like this Pearl Harbor project slid a bit. It seems like the concrete segment has great visibility, even more so than maybe when you started 2024. So does the sequencing of the year look a little different than in years past? Yeah, I think it looks slightly different from from last year. Definitely our first quarter tends to be lighter based on weather in Texas and things like that, but so, you know, first quarter seems like it's always the, the, the low, the low point of the year.
Speaker Change: Okay and then.
Speaker Change: I guess just wanted to get a sense around the buildup to the outlook for the year I know you've got seasonality in the first quarter and the first half is always the case, but it sounded like the Pearl Harbor Harbor projects slid a bit it seems like the concrete segment has great visibility.
Speaker Change: Even more so than maybe when you started 2024. So does the is the sequencing of the year look a little different than in years past.
Speaker Change: Yes, I think it looks slightly different from from last year definitely our first quarter tends to be lighter based on weather in Texas and things like that but.
Speaker Change: So first quarter it seems like it's always the the.
Speaker Change: The low the low point of the year.
Scott Thanisch: Last year was kind of a low 1st half and high 2nd half this year. We kind of kind of see a build up from 1st, 2nd, 3rd and then, you know, as the Hawaii project starts wrapping up, you know, 4th quarter probably not quite as strong as as last 4th quarter.
Speaker Change: Last year was kind of a.
Speaker Change: A low first half and high by second half.
Speaker Change: This year, we kind of see.
Speaker Change: A buildup from first to second third and then.
Speaker Change: As the Hawaii project starts wrapping up.
Speaker Change: Fourth quarter.
Speaker Change: Probably not quite as strong as last fourth quarter.
Scott Thanisch: And then, you know, last question, just, you know, on concrete, since the lead times are shorter. Again, seems like you got great visibility there. Is there an opportunity to get to that high single digits kind of margin range this year? It may not be embedded in guidance, I get that, but... It seems like the business, as you said, is really on a good footing here. You've got pretty good visibility this year. I think we'll get close to it. I'm not sure, you know, if we're going to get all the way there, but I think we're going to make a lot more progress toward that.
Speaker Change: And then last question just.
Speaker Change: Yeah on concrete since the lead times are shorter.
Speaker Change: Again, it seems like you've got great visibility there.
Speaker Change: Is there an opportunity to get to that high single digit kind of margin range. This year. It may not be embedded in guidance I get that but it seems like the business as you said really on a good footing here, you've got pretty good visibility this year.
Speaker Change: I think we May I think we'll get close to it I'm not sure if we're going to get all the way there, but I think we're going to make a lot of a lot more progress toward that.
Scott Thanisch: That concrete business is a lot of good things happening there, and we feel really good about continued improvement. So I think we're going to get close. I don't know if we'll get all the way there, but we'll get closer. Yeah, we typically talk about that as being more of a medium-term goal, and it's largely going to be enabled by our growth in scale as we spread our fixed cost over those two businesses more efficiently. That'll be the real difference as we kind of make that last bridge over to those target margins. Got it.
Speaker Change: The concrete businesses.
Speaker Change: So a lot of good things happening there and we feel feel really good about continued improvement. So I think we're going to get close I don't know if we'll get all the way there, but we'll get close closer yes, we typically talk about that as being more of a medium term goal and it's largely going to be.
Speaker Change: Enabled by our growth and scale as we spread our fixed cost over those two businesses more efficiently.
Speaker Change: That'll be the real differences, we kind of make that last bridge over to those target margins.
Speaker Change: Got it and just last one appreciate the comments just around.
Travis Boone: And just the last one, appreciate the comments just around, you know, obviously lots of questions about federal spending, but doesn't sound like that's necessarily affected the opportunities in the Asia Pacific. I guess the question is, but is it causing any consternation or push out in the timing of bidding these? Projects or is that just simply just kind of typical stuff that's moving the Yeah, I would say that we haven't really seen a delay in when we expect those bids to come to market, as Travis talked about. Those MAC contracts are starting to put out named projects that are part of that increased $16 billion in our pipeline.
Speaker Change: Lots of questions about federal spending, but doesn't sound like that's necessarily affected the opportunities in the Asia Pacific.
Speaker Change: I guess question is but is it.
Speaker Change: Causing any consternation or push out and the timing bidding these projects.
Speaker Change: Projects or is that just simply.
Speaker Change: Just kind of typical stuff that's moved.
Speaker Change: And this is sort of projects to the right in terms of bidding opportunities.
Speaker Change: Yes, I would say that we haven't really seen a delay in when we expect those bids to come to market as <unk> talked about does Mac contracts are starting to put out named projects that are part of that increased $16 billion in our pipeline. So I don't.
Scott Thanisch: So I don't think that any of the government pause discussion or cuts has really impacted the areas where we're seeing funding come from. Does that answer your question, Brent? Yeah, it does. I appreciate it. Thank you. All right. Thanks, Brent. Once again, if you would like to ask a question, please press star, then 1 to be joined into the question queue. There are no further questions at this time, which concludes our question and answer session.
Speaker Change: Think that any of the government pause discussion or.
Speaker Change: Cuts has really impacted the areas, where we're seeing funding come from.
Brent Thielman: Does that answer your question Brent, Yes, yes, yes, no I appreciate it thank you.
Speaker Change: Thanks Brent.
Speaker Change: Yeah.
Speaker Change: Once again, if you would like to ask a question. Please press Star then one can be joined into the question queue.
Speaker Change: There are no further questions at this time, which concludes our question and answer session.
Travis Boone: I would like to turn the conference back over to Travis Boone, CEO, for any closing remarks. Thank you all again for joining our call. We continue to be appreciative of our of our teams who are working hard every day out in the elements to deliver and and for our clients and and. and work safely and get home safe at the end of every day. Thank you all for joining and look forward to a strong year. Have a good day.
Speaker Change: I'd now like to turn the conference back over to Travis Miller CEO for any closing remarks.
Travis Miller: Thank you all again for joining our call. We continue to be appreciative of our of our teams are working hard everyday out in the elements to <unk>.
Travis Miller: Deliver and for our clients and.
Travis Miller: We worked safely and get home get home safely at the end of every day.
Travis Miller: Thank you all for joining and look forward to a strong year.
Travis Miller: Have a good day.
Operator: The conference has now concluded. Thank you for attending today's presentation.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Operator: You may now disconnect.
Travis Miller: [music].