Q4 2024 Shimmick Corp Earnings Call
Good afternoon, and welcome to Shimmick Corporation's fourth quarter in full year 2024 earnings conference call. At this time, all participants earn a listen-only mode. A question and answer session will follow the formal presentation.
As a reminder, this conference is being recorded.
Speaker Change: I'd now like to turn the conference over to Anthony Rosmos, Investor Relations. Please go ahead.
Anthony Rozma: Good afternoon, and thank you for joining us on today's conference call to discuss Shimmick's fourth quarter and full year 2024 results. Slides for today's presentation are available on the Investor Relations section of our website, www.shinnick.com.
Anthony Rozma: During this conference call, management will make four looking statements based on current expectations and assumptions, which are subject to risk and uncertainties.
Anthony Rozma: Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect.
Anthony Rozma: We identified the principal risks and uncertainties that may affect our performance and our reports and filings with the Securities and Exchange Commission, which can also be found on our investor relations website.
Anthony Rozma: We do not undertake a duty to update any forward-locking statements.
Today's presentation also includes references to non-GAAP financial measures.
Anthony Rozma: You should refer to the information contained in the company's sports quarter press release for definitional information and reconciliation of historical non-gab measures to the comparable GAAP financial measures. With that is my pleasure to turn the call over to your role, y'all, Shimmick CEO .
Yerol Yal-Shemek: Good afternoon and thank you all for joining us on today's call. I'm joined by Amanda Mobley, Shimmick's interim CFO . I'm excited to be speaking with you today on my first earnings call this, Shimmick's new CEO .
Yerol Yal-Shemek: Or the last three months, I've had the opportunity to visit almost all of our active projects, meet our project and corporate staff, talk to our clients and our industry partners, and understand the challenges and opportunities that lie ahead of us.
Yerol Yal-Shemek: Building on these insights, I'm going to outline our strategy to make Shimmick the leading premier infrastructure contractor.
Yerol Yal-Shemek: The strategy is designed around three strategic pillars, sustainable backlog, operational excellence, and people in culture. I will explain each of these in detail, but first let me address some of the key points of our operational and financial results.
Yerol Yal-Shemek: For the fourth quarter of 2024 and full year, we delivered revenues of 104 million and 480 million with an adjusted EBITO of negative 27 million and full year 2024 EBITO of negative 61 million.
Yerol Yal-Shemek: Of the fourth quarter revenues, nearly 77% came from Shimmick Project, which we define as the project we won after we became an independent company after ACOM ownership.
Yerol Yal-Shemek: Shimmick projects also continue to report positive growth margins despite weather impacts and delays and cost increases during the close-up phases on certain projects.
Yerol Yal-Shemek: We also achieved significant improvements in our SGNA cost in 2024, now trending towards industry benchmarks.
Yerol Yal-Shemek: Our backlog stands at 822 million, reflecting a 20-month runway to put our new strategy in motion.
Yerol Yal-Shemek: We also finished the year with total liquidity of 100 million, a good sign of our forward momentum.
Yerol Yal-Shemek: We have some strong winds in the sport quarter that align well very well with our forward strategy. These winds include the winds in the City of Santa Cruz, the Murray Street Bridge Project, and the Wastewater Treatment Plant Headworks Rehabilitation.
Yerol Yal-Shemek: These projects span water, climate resilience and transportation markets, and are delivered through a range of project delivery methods and support our continued transformation into profitability and consistent results.
Yerol Yal-Shemek: Amanda will get deeper detail on the numbers shortly, but before I start the strategy discussion, I want to touch on the state of Shimmick today. We are at the tail end of completing what we call legacy projects, which have continued to negatively impact our results in 2024.
Yerol Yal-Shemek: We see very positive market conditions ahead at a bus that align with our offering, but we also recognize the need to move quickly as we look to replace the revenues and margins from divested businesses as we simplify our operations in 2024.
Yerol Yal-Shemek: We have a well-known and respected brand, which is critical to our backlog expansion strategy, a rare set of capabilities that make us competitive and provide turnkey delivery options, and a better value for our clients, and most importantly, an impressive technically savvy staff committed to the future of our company.
Yerol Yal-Shemek: He will opt to offer to our clients in both public and private markets.
Yerol Yal-Shemek: While we have traditionally been more public-clined focus, more and forward we have an opportunity to balance our client portfolio. Continuing our long and successful relationships with municipal, state, and federal government agencies, while winning new clients in the utility, manufacturing, hyper-scale industrial space.
Speaker Change: What I've heard from our customers through many conversations since I joined Shimmick, is that they've come to know us for our competitiveness of delivery excellence and our dependability.
Yerol Yal-Shemek: I'm confident that in today's construction market, challenge with skilled labor shortages and budget and time constraints, these are skills that will differentiate us and that we can build on.
Yerol Yal-Shemek: I would like to now do a deeper dive into our focus market. To take the most advantage of this value we provide, you will expand our focus on delivering sustainable infrastructure solutions across four key end markets. Water resources, climate resilience, energy transition and technology and sustainable transportation.
Yerol Yal-Shemek: I will briefly discuss our approach on each of these markets.
Yerol Yal-Shemek: Water infrastructure is what we are known for and love. It includes water and wastewater treatment as well as storage, access and hydropower projects.
Yerol Yal-Shemek: The robust market across the U.S. and consistently sees predictable funding even with changing administration priorities.
Yerol Yal-Shemek: Major drivers of water projects continue to be the needs to upgrade ageing for structure, treatment of new pollutants in water as technology develops as we have seen in the emergence of PFAS treatment across the nation.
Yerol Yal-Shemek: Water scarcity across the west that requires more water recycling and storage options and migration patterns that require construction and upgrading of the new treatment facility.
Yerol Yal-Shemek: We are very comfortable in this market. I will continue to look for opportunities across the west coast as well as in select growth markets where we can leverage our expertise.
Yerol Yal-Shemek: Second is climate adaptation and resilience, as the intensity and the frequency of weather events change and sea level rise continues. Not only do we need to respond to emergencies and unexpected events, but the nation's infrastructure has to adapt to maintain our quality of life, our community as well being.
Yerol Yal-Shemek: We recently started working on the Bruno Moble efforts from the devastating LA fires, and we have already completed several flood mitigation projects in California, where we installed sea walls, gates, and levees to protect adjacent communities and businesses from severe weather events.
Yerol Yal-Shemek: We expect a strong pipeline of projects in this field, such as raising bridge elevations, upgrading storm drain systems and weather proofing existing facilities.
Next, the Technology and Energy Transition.
Yerol Yal-Shemek: It is well known that the computing power needs driven by rapid developments in AI technology have created an exponential increase in data-centered infrastructure investment.
Yerol Yal-Shemek: This work is spread out across the country as robots funding and has the potential to generate sizable revenue streams in short periods of time.
Yerol Yal-Shemek: and the building shelf generally is only a fraction of the cost of the facility.
Yerol Yal-Shemek: Where Shimmick can provide value is the necessary water treatment cooling and electrical work associated with these facilities, which often represent 30% or more of the overall project cost, and are well within our capability.
Yerol Yal-Shemek: In 2025, we'll be looking to extend in this market and utilize our expertise and resources either in a specialty subcontracting role to general contractors that are undertaking this work or directly to the facility owners.
Yerol Yal-Shemek: While an amount of uncertainty has been introduced to the energy market with the new administration, energy security and efficient use of all leading sources of energy remains a national priority, and we still see a robust growth opportunity here.
Yerol Yal-Shemek: For example, most of our West Coast transit and municipal clients have already started upgrading their bus and work vehicle fleets to electric and are upgrading their facilities to service
Yerol Yal-Shemek: Also, electrification at seaports and airports is continuing and we see good opportunities for our turnkey offering in the battery storage sector.
Yerol Yal-Shemek: We are currently completing projects in this field at the Port of Tacoma and Washington and have done similar ones at LAX and at the Port of Long Beach.
Yerol Yal-Shemek: and finally sustainable transportation. Shimmick has a long history of delivering transportation solutions across the United States.
Yerol Yal-Shemek: We're seeing the merging of technology and demand for public transportation creating a steady stream of opportunity.
Yerol Yal-Shemek: We have a robust list of projects we will be targeting in 2025 in this field, mostly delivered through lower risk, alternative delivery contracts, and see this field as a key part of our diversification strategy.
Yerol Yal-Shemek: The good news is that none of these markets are entirely new to us. We have delivered projects successfully and have good client relationship in many of these markets.
Yerol Yal-Shemek: With a strategic focus and an expanded bidding capacity, we have the opportunity to see growth in each of these markets. We are very optimistic about our addressable market for the next few years.
Yerol Yal-Shemek: The size of non-residential U.S. construction market is upwards of $1 trillion a year, and Shimmick's addressable market within that is about $269 billion. Adjusted for our market presence, we view the addressable market at roughly $106 billion per year.
Yerol Yal-Shemek: With that backdrop, let me shift over to discuss our newly implemented strategic pillars and our key initiatives for 2025.
Yerol Yal-Shemek: Our first killer is a sustainable, risk-balanced backlog and a book of work. We are very focused on increasing our backlog of the percentage of our revenues while we're using its risk-profile through marketing geographic diversification, project profile inside, and use of alternative project delivery methods.
Yerol Yal-Shemek: We are making investments in a reorganized estimating and bidding department and plan to substantially increase our bid volume and improve our win rates.
Yerol Yal-Shemek: In the past, we focused on projects in California and California will absolutely continue to be a major part of our business.
Yerol Yal-Shemek: But given the market opportunity and our capabilities as I discussed earlier, our core presence more and forward will expand along the west coast, in particular the state of Washington where we have a strong history and existing market relationships.
Yerol Yal-Shemek: We're also targeting selective national expansion and growth markets, especially in water and electrical work where we have transferable skills, resources and experience.
Yerol Yal-Shemek: Along with this expanded geographical focus, another strategic initiative is the pursue and to win collaborative delivery projects, which align to industry trends.
Yerol Yal-Shemek: We believe that delivery methods, such as progressive design, build and construction match red risk, also known as alternative delivery methods, are going to be used in increasing frequency in the market.
Yerol Yal-Shemek: In fact, as I'm building an institutional America, it's estimating the majority of the volume in our markets to be delivered through alternative delivery methods by 2020-8.
Yerol Yal-Shemek: Our goal is to achieve a balance portfolio between collaborative and fixed price delivery methods by 2028 as well. As a recent win, we secured the North Hollywood bus rapid transit project, a collaborative delivery contract with Los Angeles Metro, a long-time client of ours, giving us a running start with this initiative.
Yerol Yal-Shemek: Additionally, these projects are commonly delivered through joint ventures and strategic partnerships, allowing us to pursue larger, higher value opportunities.
Yerol Yal-Shemek: Over all this strategy provides more predictable project outcomes and sustained flying relationships which in turn enhance take older value over the long term.
Yerol Yal-Shemek: On a third initiative, one I'm particularly excited about is our electrical and technology driven infrastructure market expansion.
Yerol Yal-Shemek: Across the construction industry, we are seeing electrical work taking a larger share of most construction projects due to technological improvements, along with growing needs of water, transit, data centers and other segments.
Yerol Yal-Shemek: We believe our self-performing electrical capabilities offer an advantage in the market and a great value to our clients.
Yerol Yal-Shemek: We will expand our electrical division and position it to pursue and win projects on its own, rather than just supporting the civil business as they had in the past.
Yerol Yal-Shemek: We also see subcontracting opportunities in new markets such as manufacturing in data centers, energy transition, industrial, transit and healthcare.
Yerol Yal-Shemek: The market continues to be competitive and it's critical that we continue to improve our operations for consistent results.
Thanks. Therefore, our second strategic pillar is our operational excellence.
Yerol Yal-Shemek: In 2025, we are implementing several initiatives that we see as low-hanging fruit, designed to make immediate impact on our operations such as upgrade to our ERP and sales and bidding systems and efficiency improvements to our IT technology.
Yerol Yal-Shemek: Another area where focused on is risk management. Fiscal 2024 was a successful year for Shimmick as far as resolving ongoing dispute with some legacy projects, but we still have work to do.
Yerol Yal-Shemek: While it's not unusual for construction projects to experience scope-girls, changes and disputes, this year we're putting in place processes and measures that allow for early identification and resolution of these issues.
Yerol Yal-Shemek: and a stronger and more structured collaboration with our clients, which we believe will have a positive impact on our cash flows and operating margins in 2025 and into the future.
Yerol Yal-Shemek: And finally, we are continuing our discipline focus on right-sizing RSGNA after making great progress in 2024. We are continuing to make improvements in insurance, IT, equipment, procurement, human resources and other corporate departments, and will continue to closely manage RSGNA as a function of our revenues.
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Speaker Change: Gerard's final strategic pillar has to do with tiefling culture. I'm impressed every day with our employees' broad-based technical talent and strong commitment to the mission of Shimmick.
Speaker Change: Our performance and safety is impressive with a record that's significantly better than industry averages. We have a strong sick quality program. We are known in the market as a contractor that delivers technically challenging and complex projects and is a good partner to our clients.
Speaker Change: With the near completion of legacy projects settling off all these issues and a bright outlook on expanding our backlog, I'm focused on ensuring our people are taking care of to do what they do best.
Speaker Change: This year, we will continue to work on improvements in employee benefits. We have already introduced a new performance feedback process, and we're aligning our incentive program to reward strong financial performance, as well as contribution to the company goals and mission.
Speaker Change: We are retooling our title structure to ensure clear and achievable career path for our employees and finally introducing a high potential employee retention program to reward and support our top performance performers and other initiative on very excited about.
Speaker Change: To wrap up this part of the presentation, I see 2020-25 as our year for setting building blocks of our future.
Speaker Change: We have a strong foundation to grow from with a wide base of existing and potential clients, a well-funded market that aligns with our skills, and we are finally in a position to emerge from the negative impacts of our challenging legacy projects.
Speaker Change: With recent wins on a solid backlog, we have a great opportunity to implement our new strategy. I'm extremely optimistic about our future.
Speaker Change: Our guidance for 2025, which Amanda is going to talk about in a minute, is informed by this positive outlook and our opportunity to get back to profitability, replace legacy revenue with global risk, new work, and build our backlog for the future. With that, let's turn to Call Over Time, Amanda.
Thanks, you're all.
Speaker Change: For the fourth quarter, we reported revenue of $104 million compared to $138 million for the prior year period.
Speaker Change: For Revenue On Shimmick Project, which focused on water infrastructure or other critical infrastructure, we recognized revenue of $80 million in the fourth quarter of 2024 compared to $85 million a year ago.
Speaker Change: The decrease was primarily the result of the decrease from lower activity on existing jobs and jobs winding down, partially except by revenue from a new water infrastructure job.
Speaker Change: Growth Margin recognized on Shimmick projects in the fourth quarter with $2 million compared to $9 million of Margin recognized a year ago.
Speaker Change: The decreasing growth margin was primarily the result of a $15 million in increasing cost of revenue.
Speaker Change: Schedule extensions and a decrease in revenue from existing projects that are winding down. Personally, I've said by an aggregate of $8 million gross margins from a new water infrastructure project and ramp up of a transportation project.
Speaker Change: Legacy Project Revenue was $18 million for the three months ended January 3rd, 2025. A decline of $28 million as compared to the three months ended December 29th, 2023 as the company worked to complete these projects.
Speaker Change: Legacy Project's gross margin was a negative $12 million in the fourth quarter compared to the negative $8 million a year ago.
Speaker Change: The negative growth margin was primarily the result of continued impacts of legacy projects winding down as well as additional legal fees to pursue contract modifications and recovery and additional cost overruns on other legacy loss projects.
Speaker Change: As a reminder, as these legacy-loss projects continue to wind down to completion, no further growth margin will be recognized, and in some cases there may be additional costs associated with these projects which will be recognized in the period.
Speaker Change: We continue to actively pursue all opportunities to access these costs.
Speaker Change: Rex Revenue recognized on the foundation projects with $5 million in the fourth quarter 2024 compared to $7 million a year ago driven by the result of timing of jobs winding down.
Speaker Change: Gross Margin, Reganized on Foundation Projects, was a $10 million loss in the fourth quarter 2024 compared to a $2 million loss a year ago.
Speaker Change: Our net loss for the fourth quarter, 2024, was $38 million compared to a net loss of $17 million for the prior year period, primarily due to a decrease in growth margin of $20 million as a result of growth margin decline in the foundation business.
Speaker Change: Fourth-quarter adjusted EBITAS was negative $27 million compared to negative $9 million in the prior year period.
Speaker Change: Turning to the balance sheet, unrestricted cash and cash equivalence at January 3rd, 2025, total to $354 million and availability under the evolving credit facility and the credit facility totaled $15 million and $51 million respectively, resulting in total liquidity of $100 million.
Speaker Change: We feel comfortable in our liquidity position at the close of fiscal year 2024, which provides ample runway to carry out our strategic and operational priorities in 2025 and beyond.
Speaker Change: Our backlog remains strong and was $822 million at the end of the fourth quarter. The mix of our backlog continues to improve as Shimmick projects represent 87% of the backlog at the end of the fourth quarter versus 85% a quarter ago.
Speaker Change: This reinforces our team's commitment to be selected during the bidding process and focus on more profitable projects that will drive margins higher in our business.
Speaker Change: For the full 2025 fiscal year, we expect Shimmick process revenue to increase 10% to 15% with overall gross margin between 9% and 12%
Speaker Change: Legacy projects and foundation projects revenue between $50 million and $50 million with gross margin between negative 5% and negative 15% as we complete these projects.
Adjusted EBITF between $15 million and $25 million.
Speaker Change: With that, I'd like to turn it over now so you're all for some closing remarks.
Speaker Change: Thank you, Amanda. In conclusion, I'm simply excited about the future. We believe the next five plus years to be banner years in the infrastructure construction business. And having resolved our legacy challenges in 2024, we are ready to take advantage of these healthy market conditions.
Speaker Change: We have strong liquidity, the backlog largely for your past challenges. We have tailored our growth strategy of backlog growth, operational excellence in people in culture, to play to our strengths and deliver consistent results.
Speaker Change: Our talented staff, strong reputation and client relationships and the substantial positive value of services we are able to offer our customers, but it's in a great position for growth and strong financial outcomes over the next two to three years.
Speaker Change: I want to once again thank all of our team for their tireless efforts as we work to make Shimmick one of America's best sustainable infrastructure companies.
Operator, you may now open the line for questions.
We will now begin the question and answer session.
Speaker Change: To ask a question, you may press star, then one on your telephone keypad.
Speaker Change: If you're using a speaker phone, please pick up your handset before pressing the keys.
Speaker Change: To withdraw your question, please press star then two. At this time, we will pause momentarily
Speaker Change: The first question comes from Jerry Sweeney with Roth Capital Partners. Please go ahead.
Good afternoon, thanks for taking my call.
So the arm.
Speaker Change: I don't want to take away from the growth strategy that we want to do.
and the backlog of risk balance work and operational excellence in people and culture. But I did want to talk a little bit about just the guidance.
Speaker Change: Very happy with, I think you said, I think in total, 15 to 25 million on the EBITF's front.
Speaker Change: but just looking at the legacy Shimmick work coming out of the fourth quarter, that was 2.5% I think Chris Margin, you're targeting Chris Margin to 9 to 12% on the Shimmick work.
Speaker Change: Can you bridge how we go from the results in fourth quarter to some of that?
Speaker Change: Gottens, that you gave, and you know, conversely, similarly, I should say even with the AECOM work, you know, some of the gross margins seem to be better than they have been in the path. So, just one understand how we're going to move from the fourth quarter to some of the sky that's.
Speaker Change: Thanks Gary for the question. Yeah, definitely so as we look at
Since I joined, as we look at the performance of
Speaker Change: active project on the Shimmick side, leaving the legacy side for a second. What I see in the backlog is profitable work.
Speaker Change: and where we are with a lot of the projects, every company, every portfolio of projects have some challenging ones and some really good ones.
Speaker Change: and based on our view of where the projects are and the remaining backlog on the active projects, I'm feeling comfortable with the 9-12 percent.
There's some remaining work.
Appears Low Risk and Profitable [inaudible]
and we have some...
Speaker Change: on-going discussions with our clients for scope growth, etc. that we would be able to.
Speaker Change: at to those margins in 2025. So, while the 2% on Shimmick performed, Shimmick project performance obviously does not reflect the 9-12.
We think we're going to do better in 2025.
Speaker Change: with looking at the remaining backlog and then the other part of it is obviously looking at winning profitable work this year. A portion of that 9-12 would come from high margin work that we would win this year and burn as well.
Speaker Change: Got it. Have you been able, I know you've only been there I think three months, but have you been able to come in and make institute any changes that you thought that you may think could drive improvement with existing work or is the existing contract sort of...
Speaker Change: They're baked in the risk and margins are what they are.
Speaker Change: No, I think there's opportunity there. A lot of our projects are somewhat mature, so maybe I want to say it's a big opportunity, but there's opportunity around risk management improvements that we're doing looking at identifying issues a little bit earlier, getting with our clients a little bit earlier and resolving those issues before they impact the bottom line. That's what I've been focused on over the last three.
and the Global Operation Movement.
Speaker Change: Got it, and then just maybe even Kate and maybe I should have asked this [inaudible]
Speaker Change: Trans upward from Q1, obviously there's some seasonality in Q1, but Q1, Q2, better Q3, better than Q2, etc. As we move to the years, better projects enter the work phase, is that a fair assumption?
Speaker Change: That is a fair assumption. I think I would say it's probably Turt Corridor Heavy, generally, that tends to track pretty well with general construction business tracking, but yes, I would say Turt Corridor better, Turt Corridor best, probably flattened too.
the Q4, some down those lines.
Speaker Change: That's fair. And then finally, you and I have spoken a little bit, you know, maybe transitioning from bid work to more negotiated work and obviously that, you know, that takes time.
Speaker Change: Any thoughts on that or is it still a little bit too early to sort of delve into that?
Speaker Change: No, I think it's probably good to talk about it. The way those projects work is you win them today and then you have to go through a...
Speaker Change: 12-2, somewhere between 9 and 18 months of prep work pre-construction work where you negotiate the contract costs and mitigate risks and negotiate contract terms with the clients.
Speaker Change: based on the client's estimates $190 million construction contracts sometime next year.
Speaker Change: So, we're setting the stage for being able to winning those projects where we negotiate the construction contract and book the backlog in 26 and 27. So, that work has already started.
Speaker Change: We've already made quite a bit of investment in that side of the business to sail the early side of the business and we feel we're going to see some great progress this year and set us up really well for 26 and 27.
Speaker Change: That's right. It does take some time to turn that backlog over. I think even as you're saying, you know, 26 will be the start 27 higher than 28, you know.
even even higher than 27 per se.
Speaker Change: Yeah, my goal, yeah, that's exactly right. My goal is to get to a balanced portfolio between that type of work and our traditional fixed price work and even balanced by end of 27 probably 28.
Speaker Change: Is that the goal in general, just even balance, or would it be, is that just a target to get the 50-50 by the end of 27 and potentially grow it there after, or do you see 50-50 is the right sort of level for...
Did work in the commercial.
to work.
Speaker Change: I believe that's the right balance. There are benefits to fixed price work. Margin's tend to be higher. They get into construction faster, so they help the back lock faster. So 50-50 balance, I'll be very happy with it.
I've got it, to make sense. Okay.
Speaker Change: That's it for me, I'll jump back into it, but I really appreciate it and you know...
Speaker Change: Look forward to working with you more over the next year. Thank you. Take care.
Speaker Change: The next question is from Aaron Spychalla with Craig Hallum Capital. Please go ahead.
Speaker Change: Yeah, good afternoon. You're all in Amanda. Thanks for taking the questions. You know, maybe first for me, you know, obviously, you know, sounding optimistic on the pipeline can kind of hear that.
Speaker Change: Can you just kind of talk about some of the federal budget issues, kind of I.I.J.A. uncertainty, kind of spending, you know, are you seeing any impact from that, anything going on, kind of in the local California market, you know, let's give in you any pause or, you know, timeline issues or anything like that?
Speaker Change: Yeah, great question. Aaron, thank you. So, we have not seen any impact in our active projects so far. Everything is going as planned and there hasn't been any funding pooling or anything like that and that's...
Speaker Change: The ultimate result there is going to be just different priorities but still work within our realm or in our capabilities. So I don't see the money necessarily going away maybe changing direction a little bit under what's already been approved.
Speaker Change: and Water tends to be from a general EPA-founding perspective. A lot of our projects are...
from the State Revolving Fund, managed by the EPA.
Speaker Change: And over, you know, the first Trump administration into the Biden administration and to now we don't expect a whole lot of change because the need is always there and it's...
Speaker Change: very well supported by the communities, this part of these projects.
Speaker Change: So overall we're not we're not overly concerned. I think they're maybe that maybe it's more of a pause than a rollback and I think so far projects have been on track in continuing.
Speaker Change: Good, that's good to hear. And then maybe second for me, you know, can you just maybe talk a little bit more about the bit activity and pipeline you kind of mentioned, you know, the four kind of growth areas, just curious.
Speaker Change: Sounds like, you know, confidence in, you know, good margins in that pipeline and then just if you could also speak to kind of how you're feeling about labor availability and things like that as you kind of go after these projects.
Yeah, thank you.
Speaker Change: We, I do feel good about the pipeline. I think, you know, the money may get shifted like I said in some different ways, but I generally we expect the finally to stay at the level that it currently is.
Speaker Change: and a lot of the areas that we're growing in and that we would like to grow in in our strategy with just heavily heavy on water and electrical, a lot of those markets remain funded.
Speaker Change: and break into or improve our backlog towards private clients as well and find a better balance.
Speaker Change: that gives us a lot more resiliency over the long term.
Speaker Change: on the Labour side. I think the West Coast is still in pretty good shape. We...
We are getting the qualified labor we need, our staff.
Speaker Change: We have some capacity, in fact, I believe based on what I've seen so far.
I think we have some
Speaker Change: Staff, we have some capacity to grow. As you go towards some of the other markets, maybe less so. This is the data center, AI improvements and the labor force that's been...
Speaker Change: The Tracting has impacted other projects, so it's probably a little bit more challenging on projects outside of California and Washington, but generally we're not seeing a huge impact
Speaker Change: Alright, understood. And then maybe last, can you just kind of talk about the, you know, outlook for kind of free cash flow based on that guidance as we kind of think about 2025 as well?
Speaker Change: Yeah, so we start the year really in a really great place at a hundred million liquidity and we are wanting Shimmick's done in 2024 is to put in controls that are much more stringent and detailed than watching our cash flow.
So we have a really good view of where...
Speaker Change: Three cash flow and our credit facilities, we feel we are in a really good place to fund our operations.
Stains some of this growth that we're planning and still finish the year in a similar strong cash position. Amanda, did you have anything to add to that?
Amanda Mobley: Yeah, no, I just expand on that a little. As you were saying, we continued to heavily focus on our cash position and make sure we are tracking against what we're budgeting in the
Amanda Mobley: We would have that availability in the next three years as well.
Amanda Mobley: Alright, appreciate you taking the questions, I'll turn it over.
Speaker Change: Thank you. I would like to turn the conference back over to you. You're all y'all for any closing remarks.
Speaker Change: Thank you everyone for the questions. Like I stated in my earlier, we are very optimistic about 2025 and looking forward to talking to you all again in Q1. Thank you.
Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
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