Primoris Services (PRIM) 11 Aug 182018 Q2 Earnings call transcript

Greetings. And welcome to Primoris Services Corporation 2018 Second Quarter Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to VP conference of like host, to now Tholking, Kate Investor would turn over the your I Relations.

Thank Thank you, you everyone. for joining Dena. us today. Good morning,

Chief be Our Vice Executive Chief King, speakers day and and will Officer. for President Moerbeek, the President and Executive Financial our Officer; Pete David

release, this call. plan posted to on have the slides key on addition to we highlight we In our points morning’s press also website that discuss

Once section website, You the can in going by you then find Investors for on access the Investors. will to our site, link www.prim.com, the selecting corporate call. Events next them the webcast today’s slides & to Presentations

Before today’s to such Words estimates, company’s to forward-looking like call are future believes, the made as may and expects, identify to may expressions we statements. contain statements, similar I during regard future statements certain would intended with or remind performance. everyone begin, projects, forward-looking that including

involve the to obligation this securities Form laws. events I and forward-looking XXXX this of limitation, in XX-Q, update risks new the over Factors be under applicable morning. or the our may without call required turn section not annual to King. undertake and other including, release information, otherwise, Forward-looking as would a Primoris does December like ending any period or any future filed in for Risk whether which CEO, revise publicly and detailed statements result except David to as now on report press statements those our morning’s was inherently the uncertainties, in XX-K portions discussed XX, those and

rest does did not the to give positive credit not hard summary hoped. as that that our we quarter results. today Willbros results work to and completed I the had the from results joining start by of everyone. morning, could our discuss us Primoris and that Good second you the the project ACP But acquisition team. saying for we quarter quickly second summarize Thank as

to begin to say shareholders, public, and in Primoris’ the continue Since becoming have to the clients, impressive our years to all you an of my fitting Since want partners revenues going and financial organization I our goals for with anniversary a by first up all to company. Opening of our first as XX our units we a our that reached remarks, rate. strategic to thank year It achieved only in as XX employees solid achieve our I XXth and our dating set backed growth our completed congratulate delivering power best-in-class has traded stakeholders and Primoris great off So, three on back helping NASDAQ our growth. work up, employees Bell business results, segments. last latest publicly wanted started start and XXXXs, with acquisition acquisitions, to steady celebrate I good picking of foundation. a strong are new a its show quarter job backlog electric the inception new Friday. Well, business our Ceremony and MSA second gas with utility the record in continuing has is we engineering work

not ACP very the down the delay the has level quarter. smaller our in work as our and We to confident continue The in amount project pushed Our planned pleased Primoris billion for as issue good businesses related acquisition base revenue of and are growing strength newly cost Willbros. its the will reductions diameter revving future. and I overhead and that our we we of saw month quarter, am market Willbros MSA the of confident The electrical this second solid with of June. T&D since significantly view years was acquired ever backlog remain for margins pipeline highest the timing only are year’s both the finalized ACP and come. and but of tough addition in a for the a work $X.X last Group a to with pipeline in as project Group provide up comparison had the at the the large we other MSA delay running this to

with are plans. implementing expected We cost right as line our in us where to reduction be I we continue

cost opportunities not estate, real ranging We equipment. just continue real are ideas. areas to across to see These These bonding and of additional costs reduction. insurance, are cut

about Additionally, the revenue business we units. opportunity to excited at the grow are very acquired

Porter, Priest, working great Johnny Kinch are with brought Taylor. Campbell, and some Scott Jeremy Sheridon personnel We Adam the acquisition like operations in over

the bring strong manageable cash equity it a this level morning of discussion to the our it debt very historical expect segment. remains sheet I increased results range and of closer -- will clearly the with over Willbros balance bring XX% to Civil with years. few next start acquisition my to segment the solid our a to experience is we at while Our of level, position and debt

the we the have results While disappointed for quarter margins second financial negative year-over-year, in are the improved segment.

is Heavy good newly design-build performance they with management Our success team and Mark awarded improved Louisiana by work. work led to-date showing Civil Buchanan on having are

still that to project. our and recognizing so built However, we that older quarter up cleaning was that we projects, Airport are include work some ready clearly higher this on terminated project cost some Houston be in on not

has find of Heavy of along is in the is cost, projects I been companies legacy they prospects the Beatty’s methanol with management but Primoris direction effort yet. on has though recover before, be half like Group Jonas commercial has and been replacement very just Gulf the will time segment cost. projects forecasted them and Coast bids and segment. slow are challenge. to quite not -- to impact project the of his the number on I&M slowed lacking, projects Engineering other a their work ship they have the Mark that team backlog until also work forward, been implementing said the to slow affecting the in timing are those in like Gulf not markets, the a battleship their project The large and hard the been working is growing interesting we there industrial seen of their for a Primoris Power, Group, additional Constructors off some pointing Gulf developing. Coast Civil of They refining right would also Civil project. LNG moving tremendous The some completing the remaining sister there the and have and time As to have started in add we prospects Industrial Industrial our the while move petrochemical come effective work gain within also after making work

this the work While Group. up still ramped on has plant, running underutilized we in are MEG

encouraged work, for of announced seeing additional work air opportunity few. and plant also PVC able name the have pump business -- to scope recently by We new ethylene several good to recent recent units and ramping for for ethane Southern to see at in -- a expansions litigation, separations awards crackers for project. our Conrad’s station up the been work work just ocean awards work petrochemical has begun facility on Group to add are facilities. our work and we Louisiana, this in other is Bourg Conrad team

hoping project the have at in the NRG has power project. year continue acres. X,XXX covering seen pursuing Texas. are last on strong in gas-fired this our with Texas well to and to there has team history. It’s they Tim’s process safety end clients to teams excellent performance large slow, is both the but including by this remains also likelihood our impressive for schedule. work on current safety the a award largest strong on permitting power Group to fire first a for continues of over project California in of renewables and their projects The we this an Group another challenge believe projects whom unit end. to and and managing recognized keep Our they while is pursue solar Group crew, at Healy’s date performance for additional to been West site we job The heat installation tediously date near a for Industrial Tim project ARB work solar are additional month. has

added with California’s take They both acquisition of just XXXX. sure and sands a rates the on XX, capital be our refinery integration large SB oil maintenance We team his from a we we this advantage of gross that Industrial in Jeremy market. could while ARB additional us work into busy positive to the work, the As expense with refinery is we to segment project. We manage the passage would this there site Kinch carry Canadian as are June, into and the levels well month team the believe recently on record ensuring predicted announced that for Willbros that can working scope of the for the contribution and made make production we margin. operations Canadian additional

are market of they LNG into The We and by is are LNG They green United led the lot uncertainty operations to Group the tariff also in fractionation facilities also potential for have locations design projects target caused biogas They to into heater millions Design work to year. of markets more half some units our a an refining of in industry are results. the everyone grown Primoris years its to a year focus its as were recovery of the Randy picked second dollars, limited position, continues few LNG to several expanding entered are project current additional a half & our close baseload also quarter a projects good Edmonton. they to diesel, challenge tens Northeast, they front-end engineering and and as groups efforts good they include are for Construction and that environment, is syngas engineering markets, their States. projects also faced development had on for Maloney’s business now the Kevin whereas refining of being to-date. awards recently alkylation, seeing their opportunities in completing Canada. bid at several our and size. in has in engineering place asked market fabrication second a ago. Both They pricing and this the in propylene the reformers team OnQuest, putting ethylene work by sulfur installation larger having downstream design seeing than new strength, largest have the on expansion ago, second facing up has more for micro its in solid prospects year challenge across in clients. the for a Kessler,

requested in units Midwest and Baltimore of work Ohio lots segment, seeing QXC Utilities client now. to business a the they Maryland. for to Our office Distribution area, a them to a but start continue have have they late in weather opened is operations into and steady spring after growth. and new deliver region caused ground for Group, them the hit expand work The running this the

are workers skilled gas a QXC for proactive We training setting in have in up we making qualified market meet department our Minnesota sure demand. be to Midwest new region in distribution the to

of Our Mountain region QXC had out Denver also. second Rocky excellent quarter an

ago have only Primoris to Scott are Florida California. a that been Services opportunities just with in gas they backlog Summers’ up the ARB electrical as year our market but Southern seeing and their earn-out pick continue quarter on along coast. building conversion their recently working team had Southeast Willbros in the Florida second project the in announce entire traditional and not great Florida. natural they We work, acquired planned their to They announced to some transmission David Distribution made their goal. Congratulations are including Runyan, in pleased performed steady over work and Underground team is acquisition as a

them to of work year up. have continues utility strong We second to traditional the expect as ramp half their

face our comparing mentioned segment great headwinds year and I both As and Rockford. Primoris to Pipeline a last Underground second significant Pipeline delays quarter for with project and

Basin second Pipeline McRae’s there While know for opportunities we Permian this during were in abundant quarter, the that unable Primoris to for Patrick award large Group. Group formally are we new announce any the

to was miles be is of The when XX on acquisition, Services to unit, also of is business we the capitalizing The on in Bridges’ released work Permian. Willbros as two in pleased from start remaining released we $XXX Field this opportunities. these morning’s benefits million the Jeff level for Group This really the Primoris work of good the the late groups will to spreads. added announcement part a miles be quarter of As on ACP’s timing to facilities the one Rockford hope start which of to they uncertain year. activity our

notice Our ahead in the the the are team we that MAXX purchased. yards owner and equipment but being in moved over $XX receive challenge and Rockford have a proceed rest we Group’s encouraging already the that conversation spreads and have the projects we attracting the next small excited ready for with to paid are million multiple for this about three sales for for we diameter go. Ramsey’s when The on and the year, to this are we for has extremely year, schedule years. Josh large of are already few full both prospects and Primoris remain these pipeline Pipeline over we teams

segment, Transmission Trenchless project would Marina by to continuing Paul the to our my led Finally, the newest Distribution Rey, Dual Group I like execute Force with California. Main is segment. Vadnais large and on Vadnais end our well comments in Del

seen first one run the anything this management is continuing the Johnny the business. about been company, and T&D he years has a Primoris the hesitant have month XX-plus for out because able has parent viewpoint, his concerns With that been outpaces From work there right with viability. to pleased it’s previous with in sign as are month. financial awards performance Group, customers Group to of new of in amount their only Primoris now T&D but its Priest We

of months, the first from the been work some two electrical the in they utilities Within country. awarded have largest

for the other an increase work While bad most can T&D after weather. bad of create storms Group a in do our see challenge segments,

business. miles one million. recent of We forward the of were within seeing lines month XXX to until first great look a our is work, storm team down, T&D new hours. technicians estimated MSA now T&D $X.X overhead towers mobilized year For fall T&D over Texas revenue example, XX With from transmission caused after things our repair six just in one to this

confident Primoris. coming in revenues continue profitable base strategic with the the revenue We line of to years expect annual market MSA our to pipeline our for rate goal and and with providing strength is the of solid grow over a Combined be major anticipated another banner start as strong Primoris that up XXXX to we out, look be a our further already on finish remain to for shaping and the power projects, record year we year. will XXXX

employees best quality, pass of to As last to through from relationships, by now implementing thing. I in to right I the quarter. interview the in over be worked to always walk industry, very manner this one Pete? am York, the of proud an for mentioned in the our it do of week New all in Primoris safety, to Pete some the company will I principles you of the numbers which

payments, $XXX.X a with Willbros the XXXX million the Willbros David, Willbros to and Bell was worked it between for totals $XX.X progress. legal facility. could publicly the of years still color merger our the had release, last the closed That in our that the diligently $XXX agreement. of million from CFO Willbros’ about file been Opening million net our morning’s our under bank cash. advanced this associated XX has shares provide an I us a of the commercial to NASDAQ morning, on you, $XX cash agree starting price by been This financial $XX everyone. $X.X team to I XX-Q be purchase Primoris that acquisition. temporary of our by settle for XXX% good night, Friday. million stock, acquisition we Willbros We included have Since, honor $XXX paying our quarter repaid Ringing Willbros That’s credit Prior Willbros funded and the David’s company, it sentiments Thank Ceremony traded that closing, After for to accounting past was I but most press earnings so and million, last had all the made agreement. Form fees was million debt you accrued plus want X, credit Willbros with have June for the we interesting But pay acquisition. the which those numbers, purchase interest some the revolving million. to we with

we that banks to to $XXX $XX outstanding $XXX establish allowed and million. full our our off pay Notes balance our with for quarter, July the second acquisition the completed and During in million Secured us we Senior Term a commercial in a Willbros negotiated refinancing to Loan reduced revolver million

approximately years the four We expect by quarterly to The the revolver original for three original the with amount present, that of no repay Loan. interest transaction first balance the to years of amounting are Term rate quarterly that of early is will intend X.XX% this There rates. X.XX% execute repayments the for Loan five. August. interest prepayment the the Term penalties We X.XXX% of of floating requires for end and for the make swap payments At principal principal and we repayment. fix LIBOR rate amount most of is a XX-day and month

we the rate be is expectation Term Our X.X%. fixed after swap, approximately for the will Note that our execute

a As we consultant assets approximately will acquired determined assistance entries. series million had of million, the annual a of expense relationships. with made purchase amortization the accounting years. of from assets $X part XX $XX for primarily intangible intangible acquisition, a that add the we next established third-party The customer to of We

of our that loss tax and of gas equipment the the million tax estate recorded the total a $XX other of certain value estimates for result goodwill impacts. assets operating fair expected estimates amount, liabilities in also of of leases, severance real net and and and the estimate and carry-forwards benefits of the our fixed as of our inherited, legacy this acquisition. pipeline two of our we costs We Included jobs estimates oil

goodwill original measurement the call which impairment. for The on of habit be We providing year period, during date The annually the for acquisition some will extends one started me be Willbros that from the the non-GAAP expect tested acquisition. may numbers. of bad amount estimates changed of our

more provide this let quarter. time So me for clarity one that continue habit to

is for our course, the pro first forma basis, reconciliation for by the acquisition $X.XX Willbros six in On by $X.XX the quarter this per a there a share reduced months Of earnings press release. of year. and

agreements merger. we the and payments by million and prior banking severances to investment primarily services agreement of For the related completion merger-related of of for the expenses, into the accruals retention Willbros expenses to consisting merger recorded through and quarter, $X.X legal and entered

of of and Excluding the month $X.X do make income Obviously, million one gross June, they $XX but $X.X operations month profit results operating not of revenue for million. million, encouraging. the of merger-related expenses, provided are trend, Willbros a the solid of

me $XXX year’s Let the was now revenue of the shift XXXX million XXXX the the all focus million, of $XXX for quarter. to Total came compared The to acquisition the quarter second of majority this and Primoris. compared to Coastal, increase in from second added last second the Gas million acquisitions and $XX.X XXXX in quarter. of Florida Willbros a revenues which XXXX combined quarter

gross four Pipeline the in operating ACP. million DOT, the client other million, was Our million the quarter was X.X% profit occurred revenue. majority Gross the while customer profit largely in and the largest second Pipeline start current in our down a million, each the of utility, segments. second Gross largest of quarter. delay total jobs large and XXXX in increased second XXXX segment, the total the the in The of X.X% representing down XXXX Florida vast $XX.X a revenue, in was two decline to California of was $XX.X of representing second due profit year of $XX.X $XX.X completion Texas the XXXX from where quarter Underground

million. in with Texas We position in that of have Belton, revenue Civil jobs four estimated are remaining last the area a Heavy $XX.X remaining

be quarter this in quarter administrative expect X.X% $XX.X gross will second that of completed X.X% zero these general million million or their XXXX from $XX.X down jobs margin year. expenses in second the XXXX revenues, revenues. contribution Selling, were We and and of the or

right headed We in are definitely the direction.

the and the merger in Amortization them as reporting $X.X was expense have separated in related quarter. second from our we $X.X and million, a million second line quarter are XXXX quarter separate XXXX expenses up This item.

in another $X.X the half expect second We year. expense of this in million amortization

XXXX Distribution as will quarter, During expense final make earn-out we the have payment their remaining quarter, recognized no made earn-out we second $XXX,XXX of liabilities. After the this an Primoris Service target. we

year fully per million an for Obviously, earnings, for remainder net from million quarterly the we negatively XX%. basis, was merger million XX%. taxes $X.X is share, On the the fully the credits rate $X.XX rate the units. $XX.X income on income quarter will Primoris spend result for to $XX Primoris attributable effective in but or for Capital quarter We million effective of provision of per certain or believe the $X.XX closer forma for second the between million by diluted of investment earlier diluted of million our a Operating tax we acquired that remainder $XX.X in have $XX second the the expenses tax XXXX this compared we helped share. flow rate was equipment issue. a quarter quarter. believe expect the net the $X related estimate in cash million to second attributable XXXX be Willbros, tax $XX.X the was to proceeds income start quarter was effective paid or year, for impact after in includes the be reduction our sales. Our and were million could any an which timing to business during $X pro and we of XXXX the will Willbros’ per Net the quarter diluted XXXX non-GAAP strictly share. to $XX.X million to net $X.XX equipment and for bridge and expenditures of income second ACP excluding believe expire impacted That for this

at was total exceeded first $X.X billion backlog time have amounts backlog billion. billion, That’s was the Our was $X.X and fixed XX, billion. June backlog both backlog $X $X.X XXXX MSA

guidance. of the remainder expected of to the the acquisition, complete ACP the Let me would that Willbros the conclude the year. and for reducing be the impact we we by merger on guidance our delays impact our of discussing costs Based

million. Our totaling based $XX previous second we quarters of total. $XXX three guidance that ACP million was quarter, of on the approximately In revenues burned would

consider that we when positive remainder is operations we However, in for million June for the XXXX $XXX the Willbros’ we of we still the of the to remaining expected potential consider half do generate month the realize an the ACP the performance and the for that of in strong and expense of year. -- reduction, have a opportunity second very July of impact financial

other addition, diameter confidence In are as market, our jobs factors give pipeline new such for that improvements us announcement and there work. the utility as expectations opportunities small continuing in the today’s by in evidenced

am is Hopefully, Dena? measures your based done on are have clearly our earnings share. our this I questions. enough. for we diluted While now have time that non-GAAP results guidance for XXXX. our guidance It’s $X.XX guidance talked fully can we at the we Thank we that $X.XX GAAP with of per challenges at range earnings a I attain so you. XXXX to range. time, Therefore, within believe leaving definitely

question Instructions] [Operator Securities. line first Please from the Our CJS proceed Jagoda your with from comes question. of Lee

Hi. Good morning.

morning, Good Lee.

in QX guidance, with $X.XX? number is Pete, starting the included Just $X.XX to EPS which the

The so $X.XX. number, full GAAP the

Willbros the new whether And with be starting should the ultimately by to a and these Primoris the new of couple were acquisition I Primoris awarded awards, of in for customers Willbros entity? combined to talk back comp, if at back that about can Willbros, those sort to were for of how July, beneficial Okay. you so look customers the ones then,

to confident work to if types mentioned did remember award went will sector, on I let that comments basically new of should done with before. Operating some them am major the and the as them one. They take had about discussion other David. them with particular ahead some We our performing get projects Officer is some but on see. waiting of In were client Willbros of we and What with with new of electrical some hesitant during the that quite concern this time. of Lee, some met myself I the work us. Johnny work. have some we things. the on customers either Primoris, no McCormick, our T&D announce -- of little a you parent concern at we were will them did some overhead were of actually had. company financial both the them. diligence Group of had about I out Yeah. of obviously, some my they them go customers other Underground They not this so to I work, to Tom the and and were resitant They in And that kind all standby say, their they in viability only other

So, those they yeah, but Group. are are well T&D arenas, in customers we the other customers quite know new that not to

various reportable maybe help you try the into Got break of revenues segments? it. could Pete, then and some then, figure the And to us out of seasonality the business up the Willbros

one end T&D the where Southeast, when there in to be they have different want especially air because than itself of companies the seasonality tremendous business September, for we are their in used to distribution. system is the demands what conditioning. through the use slightly of during ownership, gas the The primary with sometime a Willbros month electric all After located tends opportunity is May to

be little you in the are seasonal lot Canada some somewhat So hopefully of their strictly, skewed winter. work fact that not the quarter. tends to towards to is the first in and a back into work do year work of because The Canadian of the going a the bit more half

very somewhat will Field Primoris it to of to picked have and Services. kind work like going the from that’s our similar what much -- we up we the it’s that So do QXC work be be facilities with type

you it the have estimating going total, in it game, fourth you going see at quarters. to third look do and that you if is So really in going see, you are early but are are strong to

relative me thing the add for let for we to Lee, one project MSA customers. you that The was one customer. major more announced a

then other we of above relative screen us third our leaking million doesn’t that out radar as order started far $XX us gave actually it customer the One a customers and also. to as smaller awards to major hit a that had announcing

those actually was had in was of placing through they awards. that we obviously bigger said So what we diligence financially have that the customers The exactly have went would through now on, fallen due once three one the announced. begin was there they viability

two other been announced. not have The

back queue hop in give will others I Thanks. and chance. a Perfect.

question KeyBanc from of the line Please next from Markets. with your comes Afzal Our proceed question. Tahira Capital

How you are guys. Hi, doing?

morning. Good

morning, Good Tahira.

congratulations on saw First everyone David. I Primoris at Ringing. of Bell interview, to all, your the

you. thank Well,

was know for and don’t how a me. across impromptu I little bit Sometimes I came it those in interviews

bad at. So, hopefully, look it wasn’t to too

No.

did in I I of half into don’t exactly said good to revenues know if $XXX bookings million. the And XXXX. doing get then, pretty petchem on you sort be was a projects do wanted next below original math tried you year. there several visibility your that second just year, across -- the right, I To look am your You into as get because for mean, $XXX to your XXXX the of million, at ACP to when tough LNG correct they you I sense, side, high pipeline for it’s and I point, come have projects a where I as guess, for wrong, me job. carry and and seemed some was

revenue year this I guess right million. as Willbros. it’s $XXX will no get if you to and you of $X.X and over see you growth revenue on million to is load love get PI&E revenues that commentary burning as am I to there tough completion and your is your slated get not around your If how around you put point business now, the billion $XXX is project it’s in to And in I going are and really right I the bridge now. and below bridge getting base your for assume including take would Civil,

Well, projects. talk let I Pete talk you a me revenue will in about I on let specifics will some for -- the moment. bridge the

numbers are I to you talking the in tell slip obviously, ACP $XXX the see number scheduled with on we we are some talking burning as further. down of so type that other looking working is mentioned still about going I much think agree I revenue are work close process. therein, are burn. million-ish to really And think this don’t we you obviously, and Carolina, can you, like at one then complete have I XA that you before to your very slowed Virginia see North the about. of continues some of I they some starting want we or spread ACP if kind through see on on work are year, be next certainly and what Hopefully, can where yeah, gets

All right.

petchem with not the our that bridge. on the will can predicated about specifically further, dollars on the of agree I the or you numbers on the Pete I it. would side. math revenue figure, talk So slipping tell side actual

have tracked jobs. those We

much dedicated are We several very subs on them. of

half of break begin XXXX. So I some to to in those for and look the do in second definitely

break. I begin those concerned So on as sector probably I&M I to Civil some the see mainly of am the our of side and not do about Civil, because sector Industrial

on comment to want you do the Pete, actual revenue So, numbers?

we said of that you sort are look on that couple Yeah. it some have already goal then I by if $X you the at our of and at years our the numbers that no Willbros to reason of seeing not billion was is think the and guidance. ‘XX that we ago but I there, Tahira, giving am business, there rest can’t pipeline get of

Okay.

I the try yet? your in I side. spreads Do would Okay, luck over my two pipeline not or thought guess I you have the to on Pete. one just Chinook bookings there.

morning we… it announced and just We this

Okay.

been had verbally awarded. we although …

You on I even announce in want limited to announced until got paper, proceed, work and start don’t but have on got now have the is a ink a announce just limited, may this my if to don’t I notice really that and I we rule here I the morning.

So, would for in do yeah, be they our, we those to burn. look

I think burn that of most of all this said the half that latter our year. announcement throughout will

the burn spreads. will and us that for is very quickly So it over months six the next two

right. All

look queue. the question at do I Okay. look can David, if as into SP petchem hop opportunities, back you shape When they an be example, LNG your at up sizable. and and you, for last And pretty Sasol I then will

else right versus annual utilization the basis your out on plays If the you what have you side really the on revenue now, in at all well? is upside if an what look now segment right is that underutilization

for a a pencil can I I to don’t Oh! I and know on actually you That’s it know to the have of could good that feel give it? pen this kind for upside the that to question answer don’t put Tahira, it. try I say really to hear. revenue what’s that a maybe I right,

around our that and that XX% I&M or We underutilization. actually less guess utilization at definitely is my and in probably than -- XX% side Industrial the XX% running somewhere Group maybe on are around

So the running to to our I trying and now. well expand capacity a it are revenue put piece would grow, at we can what we definitely and but without those, that we and run and right double or easily pencil could hire be really pen is haven’t past up rate

it. Got

were able... We

Yeah.

do Sasol about Yeah. there accomplish couple of and we in is in revenues says We were million that nothing years to on couldn’t $XXX that a again.

Got it.

you, Okay. Thank you, Pete. Thank David.

Yes.

Please the Thalhimer Davis. your question next from Adam from Our Thompson comes of question. proceed with line

Hey. Good morning, guys.

Good morning, Adam.

Good morning, Adam.

to the ACP. just through ruling yesterday am the how that off I want curious start timing. of impact Appeals might that curious just I came Court afternoon, on

I Oh! a my that’s not affect. mentioned we up and certain that’s I to will -- already that going that. on amount We work have there things certain are remarks, looking really is -- you we tell of still prepared there at been released got already as

I added go -- actually it to to will that been will do if work affect capacity, versus complete It ACP, at Sure. to also us. I new least stay continue ACP half related our us allow looking added to non-ACP and it what’s additional down an an think XXXX. to Adam, it? in may don’t that, a at slow some are into latter of the have it, longer and this of to does to effect over that spread comment released event we capacity will that effect the we that the the spread looking But see time, and push we say, we were as Now which in Rockford course make superintendent as delay some. the Group, a I occurring at after much work that’s continues

am some get we use I as that do to a trying if ACP. So slowdown backstop on

what your are going on forward? Civil then Okay. thoughts margins And

The get the better. on expect next we started Civil, answer appear would is to years, And that the of margin seeing year, jobs of better to Civil. what for the by positive going get margins get for should are believe to be is need we us if in the they that much to we we when going and then closer the to need couple probably if think this some include depend starting X% you the up that work that did be last I the we I&M the They additional you Heavy work useful. would very the hopefully are. can year to see and jobs X% that on to by I that are obviously end then that be that’s big doing get to some they still we We margins. pick out get of of

on some then thoughts capacity the basis on T&D the revenue for for Group? And annual that have had Group. recent What Okay. your are an awards you

Pete, originally, looked we think that... at I

the $XXX originally thought in million to would $XXX Yeah. We be range. it million

Yeah.

nothing To appeared is can’t and the have customers. we grow attention the be of interest that of that. honest, beyond Adam, We to customers says the there the

do then competitors all equipment making Journeyman we same we online replenish when work. is sure that qualified we that peers it’s of and have bringing our find is challenge in do, challenge which can can and electric Our Lineman, will that needed. the the be And T&D

to and are think, not people. to to likely as customers ability are, I bring equipment bear they limitations new the So, our be the as both new

on community some at the they got each and most the Southeast the on community Lineman that college some get resources. we has have with the obviously, training for the that people, place beginning we at Southeast field then have equipment where the have the established there Tom relationships quickest. getting in looking they and the to equipment locations, buck we the the different well necessary those on U.S. in And saying what make as train sure will with adequate meeting also the CapEx we have of of me. think have adding the as in this programs we are Pete again, biggest as School done in are to Lineman Adam, was both actually craftsman put But for met customers to strategic lineman’s it McCormick Southeast in in we and think the we mentioned, bang -- organizations, And we people, of And,

guys. Okay. Great. Thanks,

Thank you, Adam.

Our of proceed D.A. your with Instructions] Newby line question. the [Operator from from next question Bill Please comes Davidson.

Thanks. guys. morning, Good

Good morning.

Good morning.

done and that few talked that little Just you guess, yet. or further have guess, a I see I I enough on if guys a haven’t -- bit built compensation on you delays? -- things you into contingencies all David, there any more about do mean it are contract ACP, structure, color is

with the allowed risk philosophy savings Yes. there On to in that any take that the the basis, customer all, contracting own contingencies might of their a first We contingencies. new consortium of from customer. the advantage make sure be

the in move the the then, project of we if equipment equipment rates the any and therein, the in, standby cost time. the time delayed, pays standby pays customer and the As the is customer

think, are standby standing standby like than than for So But, I yeah, I we concerned on not we revenue rather covered, money standby. customer, by, am and contract. the obviously, not don’t is in revenue -- be us get burn we burning that’s with when about provisions making there paid we to the relative the customer the the getting just would are

to I out. want I just Okay. check. it double didn’t figured

Sure. Yes.

the Can them on move all this how mobile you brought Permian you mentioned extra or... is into another move do project. guess, that if to I you for want project. then, way ACP you team some them team the And to

I spread bosses got say wanted we them we in things did I projects. pretty I project. committed And didn’t spread What was add Yes. much capability, the on ACP to another because brought the had and that Rockford ACP for the

then customer other am and -- one pull I and direction. tell So I run don’t a the thing

the move add one much affecting customers let’s said, we look, could around country. that spread without a capability, them can we so more them to move that perspective, have do that we for we from projects, spread Rockford ACP. pretty or did actually So want what other I management

open realize You cost open to shop, an work the open is be the do there shop going parameters as to that. be be Basin that to there as a Most may go is not it an union. going can’t just of It done Permian I do aspect are mean and in union. union the have of there out shop. that may doesn’t effective end It’s not versus

appreciate I will all queue. in got. it. I Got get back it. I That’s

Thanks.

to David have reached And Ladies question-and-answer for like call would to we the the end session. of closing back turn and the I gentlemen, remarks.

of your in and Well, interest today some we questions. Relation to we answer and will York certainly New We soon appreciate Boston, day. We do trips -- some and you Chicago a see additional time continued Primoris. appreciate planned have your Investor good have hopefully

conference. today’s concludes This

your for disconnect participation. at Thank may this lines your You time. you