Primoris Services (PRIM) 11 Nov 182018 Q3 Earnings call transcript

Greetings. And welcome to the Primoris reports 2018 third quarter financial results call. At this time, all participants are in a listen-only mode and a brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. turn of over Investor to Kate your like Director Tholking, Relations. now the to conference host, I'd Please go ahead.

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

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

call. we we've website that the addition In plan discuss slides to posted to this morning's on on this key press points release, highlight

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

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

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

results. our joining thank discuss to morning, for you third and us Good today everyone, quarter

shareholders has XX remarks, our I'd its his a to this announced since our ago. I retirement who CFO, special he thanks years begin company CFO give Pete and plans. almost to well served became Pete Moerbeek, has As first my like

today's and Pete Vice the have with Corporate our third Controller. Also, and words revenues from gratitude the XXXX Our his $XXX Executive for quarter us Ken grown to we on contribution express Dodgen, President cannot record million million. as is $XXX today call of

Before I recent a begin share from want few projects. highlights I our segment to some of normal my comments,

benefit obviously and continues profits to projects, we from a While industrial from construction pipeline revenue other end large generate markets. Primoris other and

generator to on begun acres a State Solar California. of The County. in solar in in West the XX transmission charging finishing XX underneath business quarter of power in the five hurricanes. in goal largest peaking units units. and solar miles our our follow the XXX-megawatt business for across allowed the These These down acquisition for all already horizontal has us achieve vehicle X,XXX land panels more, also of completed our of Primoris almost high-voltage our results our Midway income quarterly on as XXX,XXX Pecos and and through incident Texas. more installed $XX revenue execution farm allowed to over incurred the we’re well on was on multiple affected employees, of of installing this project are balance safety, also than record in Michael strengthening be a line Willbros, to Florence incident the KV some miles as quarter. sheet. single net with underbuilds. rate, for and part leader Primoris' distribution of of of of results is provided also past debt XX an also in strong Texas, We We proud by Hurricane achieving continues finally, and history. Primoris the Primoris hurricane miles the paid Iowa, while over for project levels. efforts of I XXX debt-to-equity XX a of relief And a helping XX also second approach a us to multiple operating OSHA way is opportunities million mechanical of Primoris towards their achieved blocks timing execution as also while is pre-acquisition completion our both down gas-fired projects, industry reached Primoris pilot returning program Coast also applications. in with from lowest-ever restore total areas slightly we awards gas major mechanical without Primoris backlog efforts successfully at in electrical across recordable GE quarterly see completion used the Carquinez And on multiple a several Some the million. issue locations rate segments. highlights record our plant include major stations utility. residential we drill complete commercial the program many this believe for very large $XXX West to turbine at demonstrate The Primoris developing a and the Carlsbad. creative recordable Strait These quarter, for

in our the awards improve, I tend cost, believe on focus actual address to of we Because lowering on we I'll project Pete strides continue can While his let specifics the book-to-bill the to of perspective. MSA in nature both work, and we utility made lumpiness the SG&A backlog have and comments. rather a also of our

capital pleased projects. increasing we quarter reach major for pursuing. multiple-year and facilities the expect funnel customers fourth into midstream continue deploy I'm projects certain that electrical to agreements, roughly the burn. well from backlog diversity work, in record head the They include power, new the we’re range will are and quarter, MSA our maintain as decisions XXXX. for design fourth that and petrochemical-based the our pleased refining both the our In prospect business and we to revenue the we gas of see storage industrial also management site allowed For even quarter, pipeline investment new our awards taken engineering also and front-end to and our to projects types us distribution terminal renewals to LNG awarded. These as to several see of facilities. I'm and awards MSA being with as final work,

into with start the Civil diving the segments, segment. I'll Now,

We’re change a The settling our month, best, orders which process the conditions. see in obtaining have few annual as received more seen clearly in challenge, their we was rainfall and only profitable September, as and who only At days the claims. we pleased certainly team as this beginning well workable backlog Primoris affected of a rain one Louisiana Texas both into which challenging under progress opportunities, I&M of some XXXX. able work September. expect of productivity. were to translate month of the crews resurgence month and to commercially site, executed one-half revenue early segment's in Jonas work over a while crews received the weather They half to inches had condition. On and of XX in these of Beatty's job we XXXX well bidding had

be Some we of result these in for projects opportunities could selected could XXXX. which in major

a Civil last announced $XXX for week Heavy we award the On TxDOT. side, new million

group, are will over on for that project. past actions We allow Mark strong Buchanan, year Heavy performance confident has the the financially taken the of the Civil President this

state's strategic opportunities awfully very the story market attention the TxDOT. After We with implemented different and show an work have significantly, is have that focused Louisiana job as well. a as Belton have to refined been they an broad little focus civil arise. to strength schedule. historically, experience been corridor. able educated area This and advantage take of of and primarily we bidding Texas The our jobs, have approach the estimating with more on approved become execution is we where, I-XX heavy of approaches efforts how expect continues markups lot to on operate our to disciplined along we

with to the turning our about perform As opportunities any expectations. around of are been battleship, our civil ability and we more optimistic up slow, the process task has but to becoming heavy

ARB selected renewable has & West California Our Coast great passage job another the Industrial for one mandate successful two facing Power, XXX been XXX% has to up project the Primoris Engineering its new Industrial segment Carlsbad. Industrial projects, Tim on by has XXXX. one to Coast. team new added a begin in California projects. recent at natural XXXX challenges gas power The power political the wrapping SB any scheduled delivered in energy ARB repowering and for of of is East for Healy's and

over the And we XX optimistic eventual drawn-out alternative this XXXX. will reward, process currently reviewing configurations. that while receive has plant into revenue we feel that is However, potential pushed

have power national projects they for gas drivers ARB been only the our historically great Industrial, West are While work industrial of large projects not the on Coast.

just an from on of We doing benefit market in utility and the gas-fired as are for customers. North single-cycle, this we of MSA in expanding storage for years. markets group renewal as largest a oil are America recently storage the fields, year. SB one presence We significantly smaller in working next And markets, this is will announced scale of built grow utility battery to doing million ready We’re solar XXX. $XX expect take over we roughly ongoing the pressure to well advantage maintenance few the the stations focused our plants expected facilities that and that battery for

work This market solar units. a we Texas on the enhanced mentioned by was into our The in the Primoris first was closely other business it only our pleased looks but the utility-scale Renewable are resume. and not business business job, into great West to Energy and facility earlier. their at is continues expansion it Our I market, that Solar profitable Midway unit with Primoris work our foray

years. the XX to next total double five capacity over For consecutive capacity. gigawatt last over is And of the U.S. more photovoltaic than added photovoltaic quarters, a expected the utility

by Of course, impacted was our some our Industrial Coast as work segment. Gulf was rainfall, the along Civil

syngas. the award tank have Jeremy that up, a our Conrad methanol comparison, constructors new well be either been case. storage Lake strong. that large had at pleased facility. this of in early petrochemical as mines level completion the tremendous picked see sands bidding Bourg's and The building at to profitable including we for work We project our Industrial LNG to opportunities are some reduced has team these quarter oil for Willbros the unit. new We Kinch's Primoris to the sands impacted an announce projects of We funnel across While year and operating team able XXXX, projects. to thermal the current plants, Canada, late year-over-year in were opportunities break ethane continues expected is and on executing Charles quarter expansions, the said or expense large they spectrum, cracker looking Primoris' last facilities the first oil

Maloney opportunities Canadian take facilities. Coast grew front-end we quarter. in welcome Engineering on Of design At industries. revenue assisting overall, Design to winter and the OnQuest, the Construction group industrial overseeing to refining, over & so propylene the OnQuest Canada, August a engineering Randy other XX of success seeing in Gulf improved Fabrication we're I business team opportunities experience, months to but, slowdown, biomass work they retired. after entering also alkylation package, advantage the feedstock pleased land and has NGL for to units of from as in Gary units LNG and larger joined list with is seasonal & segment Primoris our Industrial, we as pushing I'd date. unit look specifically in petrochem, from and the into Canadian the power to construction driving forward having who and Kessler's are market. bid to units opportunities continue Kevin are market, Engineering with president, the in product and crackers and the opportunities course, Gulf a lines. low-cost Primoris very in like Martin Kevin are in petrochemical Kevin on ranging results gas-filled for expansion the they Smith, expect our business Coast Primoris is processing, PDC working units. getting projects, him backlog in also Both I'm heater gas years and pursuing and ethylene

has brought is segment, Summers, a work. experience, QXC nearly We reach, to management picked task. construction continuing throughout utility he have quarter for with He now strong and fill, president on the Iowa. shoes & finally Osborn quarter execution. Underground, is his has led of industries. on new up Midwest, third has expand XX also as I'm Reeves good confident retirement. focused telecom Scott and the roles the but operations Mike to years big is historically the QXC's taken Christy He as Distribution Jay a utility the of effort segment revenue Doug Utilities to to ARB our with our gas is well-earned close state strongest In geographic to entire start by that for continues

we work, announced gas In regular underground to utility conduit an systems. addition transmission trench which natural project, install their will MSA conversion and

seen we we Services, to Design from this growth growth. the revenue. a MSA a set Nearly acquired segment group, XX% Underground the we $XXX was attention Distribution last segment. third Pipeline quarter. for Utility Our garnered of and year the significant The when million lot goals have pleased Florida-based is & them of is with quarter steady revenue third segment we're in MSA our in record them Primoris in & their achieving utility the contributor The the and

While team the Jeff focus XXXX. business much revenue as who three Field this a our I begin well Patrick project, business. quarters generated Rockford first Primoris and on the Field Atlantic Permian by Pipeline in X three Services most unit is to of been open The growing units, Primoris been has the quarters first shop which and Primoris Pipeline in we has job, executing times about announced Services instrumental by of team nearly on Pipeline. led want talking has the XXXX McRae's in Bridges, Basin-West Texas as of August. is in The Primoris Coast

of the and the plus and we are fair multiple will XXXX. pipelines share in remainder win devoted rain likely Pipeline September the the opportunities. that will being has opportunities have two done has XXXX. opportunities its plenty Primoris job, XXX-mile of to across XXXX first planned or Patrick's team of to for into these of completion Permian expect quarter pursue – plenty of There Basin Southwest, although seen We the spreads push into

Turning Rockford, year XXXX. our on spreads XXXX the anticipate will very be entire and into ACP busy part we to of throughout

much spread for on capacity a is owners two win. to And Although picky committed large the that still of well capacity at which are year what one want them additional industry current we aren't last very implemented the developed unspoken ACP. to aware we’ll Rockford, we vacuum. projects, Pipelines be of is in is

on can't XXXX built that and to projects multiple market. expect are life the beyond, table and they at there for be will XXXX, this midstream we them back of while So, once, all perhaps of be some the extending strong pushed

currently issues our outstanding close on Rockford entire continue in is sure in ACP the in the their them other now, are is project. making project, project successful doing tracking underway. Ramsey and the Rockford customer the and permitting our throughout and Josh of expect know the been to partners, and of we'll For the life we have the focused have performance, I about team I execution news, staying place and the crews an job, communication with equipment to work. hear

anticipate We will up Carolina North the mainly of months, the West time, access on we the be during project. pulling but focusing back at Virginia winter out Virginia ramping the and same roads, portions on of

strong Transmission you newest want performance As segment, tell, I expect our in can continued business across Pipeline I our close & units with XXXX. Distribution. to

success existing customer group expanding and new on them, having is customers. signing With financial of for operational Priest's base work Primoris the backing now and strength Johnny their

tight market, this are we T&D. are Primoris end is workers returning pleased availability in that to labor While

these we in hiring Willbros' in a Florida proud We over with recover lost I we and reliable want whom Florence. have units on but work are actively on acquired into In the devastating new had the training recruiting, linemen in be Primoris. time affected XX working company Hurricane crews help to communities October, a offer September, Virginia, North South the business late were operations of in crews conclude future. Michael. The and areas, of from emergency September integrating Hurricane In with helping we a Carolina, XX continuing Carolina, over storm clean-up part doing comment into progress in work of after restoration to results made effort storms. work we maintenance to regular the are from strong

help As smoothly success, in existing process integration Tom acquisition. the I'll to is that results, quarter operating talk With our to positive the integration see turn financial numbers. contribution and and level maintaining made going said, of to remain our dedication all you pleased Operating the record Chief high Willbros Officer, I to a our a can focus believe projects. their very from McCormick, our we want with has our We results. thank this and now making for old, employees, it to about over and of their while Peter new Pete? that third

in David. numbers repeating results you, the And in third all compared Form are quarter in everyone. yesterday Revenues release to and third million to our XXXX want which XXXX our filed Thank both good also some want for we the $XXX without I close were morning, record-setting financial included the the which items. the out evening. million quarter. I performance third highlight open quarter, XX-Q, earnings of to $XXX

Civil of the increased & revenues the XXXX after Distribution significantly quarter remained segments, flat acquisition newly our the segment in Transmission included of in of three Willbros. X, Third June and the results segment, created formed

of quarter, represented three $XXX customers million combined a or our XX.X% utility the revenues. large During

in is range. our of work. the The Transmission $XX improve to profit the were newly-formed third Despite segment. low record of our X.X% at obviously, of our X.X% expenses of represented to call, utility from we a add we achieved On compared Tahira's million expenses SG&A the third our the the the third expenses revenues. revenue that revenues revenues quarter. third quarter of Even third XX.X% able strongest the historically this SG&A we year, to earnings, total large to gross as goal with utility, increase to $XX earnings to in the the That of in quarter. now year's quarter able all-time XXXX XXXX Selling, was to of revenue. X.X% contributions quarter reduce for And utility quarter million million incredulity were XXXX a XX.X% said or benefiting part $XX and to last I revenues, of in administrative third an were X% revenues general and, compared percent third

We the $XX.X million for have we were third Merger-related now year-to-date. and goal. in our exceed proved quarter expenses $X.X million can that

The third At Willbros' our additional million quarter severance Houston $X lease this to be retention impairment facility quarter we point, included in of part program of fourth to for $X expenses the expect former the headquarters. expenses, the range. million and

September recorded the accounting among segment, segments allocated continue the have XX, to At follows we with and million segment. We – through to acquisition. $X operating which Willbros the associated in to Transmission for Power we acquisition, $XX XXXX, the purchase work the Pipeline as the million to goodwill million segment $X $XX million

$XX We intangible primarily being period. The amortized recorded have XX-year also million, assets for assets a customer of intangible relationships. are over

amortization our was $X.X a quarter. we the For fourth and amount expect quarter, for the total similar million,

change. We from one finalize most will so have the accounting purchase year numbers, purchase likely to date the they

Willbros under million, when we $XXX of and total time goodwill task information of able of our Along the that both enhance first is the of ERP operating months system. of legacy fiscal process. will four acquisition. the improve the the we we expect Primoris' at pull less since and the Willbros plug at expect to what thereafter, we for has were the the determine and, on reduce This Completion opportunities Transmission not come. announced many the to to the acquisition results expenses the However, intangibles the contributed to be this of continue over able see hopefully, first should We end of now point year month, year the acquisition, acquisition. at estimates the that $X than the And move integration line, or segment In will that the years ownership the closing, for the a We be accretive. operating to million. will for to by XXXX, acquisition acquisition systems. be shortly accretive little earnings pretax

million million note, used us Willbros the allowed As million interest entered of in July, which acquisition. and $XX last rate term variable notes fund outstanding call, a we $XXX the mentioned to off $XXX early revolver to borrowings into we the senior pay on

pay we into the revolver variable In the down During agreement from the we balance. the interest million loan effectively $XX term hand used quarter, swap in of XX, XX% remaining $XXX cash rate rate to rate $X to At change entered of a an September, on $XXX million debt debt equipment of our total a at $XX million, costs. notes XXXX, notes, million a fixed consisting of $XXX issuance mortgage loan. million term stood September of loan, to unamortized and million

for to XXXX, rate million $XX In X.X%. amount Our debt from million. of the repurchase of Board authorized weighted the interest increased our program the Directors share $X was average outstanding August

and During $XX.X XXXX. purchased end, million. the third the expires which million quarter December we on under canceled XXX,XXX $X.X program, quarter, authorized for shares approximately remain At XX,

$X.X XXXXs. settlement September third Construction for million the liability the legal by increased a performed XX, in XXXX balance $XX.X liability a a cost million. On front, At during project the we quarter, forecasted of from by early James accrued was remediation the XXXX,

toward quarter, project XXXX. the a we completed resolving some made receivable the in that During we progress outstanding from

is in million, owed us our receivable collect the owner have money we received settlement sureties. we to been In quarter, several $XX reached second from and million. balance $XX partial a As the reduced to which the attempting bankruptcy,

million to recognize A the resolution we is gross we million. quarter, of reserved. able matter after in the settlement and four in we the we XX, surety now of date has hope bring been third years the November We set $XX remaining full additional to a can with trial work. for $X.X quarter, October, the an profit During this remaining and received for $X the balance fully were that XXXX. reached million fourth We completed full payment

quarter assets. $XX levels to significant provided operating to for the in third it in in higher receivable third For quarter. If the $XX and led cash, fund there's activities account by a activities using to quarter, reason XXXX third cash ever in contract of was compared good used the is XXXX which million increase cash operating revenues, million have

big seen quarter, of million During third In expenditure $XX a capital expenditures total we XXXX collection year-to-date October spent November, some $XX very the days. have for million. on approximately and we

We in million $XX quarter. expect expenditures $XX between million fourth the and

billion at a quarterly Our backlog which, we point, make billion, guidance. of remainder and estimate could for XX, quarter's fixed our for at this guidance billion. expect backlog good $X.X $X.X MSA the year total was September backlog the was And, XXXX finally, $X.X next that We’d was earnings. normally the becomes

there's However, year. about not normal much this

We good have seen significant but in quarter. now delays Rockford in are forecasting project, the for revenues ACP the

been We onfall that improved rainfall, extreme is have challenged work plan seen winter. there we by weather much and we've some but the to do of before

see to we to The we have expect path Therefore, can. we results level, claims record the quarter. as as the at We fast possibly widely. and potential vary guidance our a the XXXX in resolution run will same for significant for quarter see we left But another quarter.

future take earnings. gave of operations like David the Brian few able positive call opportunity last I XX appreciate of GAAP David my for Q&A Ken that have been been outstanding business. succeed that XX to hear and the members. a followers the Pacific has Tahira did quarters CFO, the our year-and-a-half, new I as will and have earnings as that to to is first I analysts I Primoris who voice head I the his and meeting have for the our will call, concluding I'd but the great calls, I CFO at call do on calls a on team queue. been and of an understand me and I of Both lead of quarter call. to do believe have team usually in and of Ken worked We company, and earnings in and large at well. story, of since, number and a working a public group who really the about our not enjoyed Lee with fortunate you first all Primoris. know many long-time XX for Pratt has an finance consecutive at moments call report have Adam our toward he me thank the Before I owners these end of that today's comments be and start of The in been been investor Northwest. earnings Jagoda that with meetings Dodgen, will have of as Janet

your call question. And the over our get turn will Rob, Let's to I operator.

you. Thank [Operator Instructions].

question The Brent from line Davidson. proceed coming today your D.A. the is Please first question. with with of Thielmann

And, morning. the well. Great. as Pete, you Thanks. all best to Good

you. Thank

business putting in Industrial of of next Is pretty in are up & kind year solid about qualitatively of XXXX segment how business results yet, quite strong we year? the side. Power, you're here some the not talking I could continue guys really You thinking in Engineering we're but talk about about know you for or a and the to backlog, next year XXXX into terms can in rebuilding off bookings, levels? resumption growth these grow

This Brent. I'll is out that, with start Yes. David.

and open. shop our segment between west the – the or then Let union me

they in project, west, some of project. power I the the able through of like SB the The we've some big kind are MSA work, that some to those XXX. been We've able projects think, get mentioned will as share, power get place awarded, mostly really I as will not comments, the through work, maintenance a but not been revenue On to verbally yet that certainly in said, kind of take few more going phases. I XXXX. XXXX. is but get most of hopeful But, We're ours to borrowing in that been go we've released that to sometime that things,

of break Coast. for the as petrochem, that certainly our get in But, to of us. projects. some engineering fair for pent-up already loose think share, some We're And of we'll smaller different see to it. that We're and refining for to it waiting bit refining already certainly our then, little scenario. open very we're going it's like loose of fairly projects projects we petrochem the actions the facilities. efforts. We've get So, But the the is there, demand site well beginning work do to that the doing we're the some We’ve and some shop, we're of getting going than large things a of some the quickly to group. on see out well work quite positioned some of think we're When XXXX some you're of on We're will LNG-related more to there's site petrochem the continued some I think west break see know, you beginning course, through I what see that. out side early a the quite few been that already of of to for of Jonas' tracking you burn side Gulf on in there.

actually So, come feel a in out in fruition that right now. one those start although albeit working And, also. role to we small currently, on will we're there, very fact, to

going shop So, I a quicker in think will open than on projects, to side. what more much west you're robustness the you is the bigger the of see

then, of margin. that, of the more rate sort good there's David. Okay. run for Thanks on And getting term? disruptive the forces in like Civil, mid-single-digit to Do on else anything back the kind in feel business a near that quarter it than sounds about you

Yes, we do.

gain we've the and of and so Even spigot and we intentionally the pretty meetings okay? organization trained this for intentionally superintendent sure every fact, we that But performance with make that rest several the we to, growing, going we've investors, pretty been execution And time that any time, the we’re unit want In way and that and off that get we much got I the flat, at we've that quarters. skills think management to everything we’d work wanted to kept levels in flat our mentioned revenue. open them we though wanted. has estimating kept have

revenue a then, quite zero it. bit of if we're had still yeah. that margin off with So, burning remember, And you

we well get more grow getting as of fact the put with business so, had other taken as job better, in are continuing have over unit we guess, that it. – of I in these performing the revenue zero very Tom that team as by in jobs this And And not say to do begin burn But and they performance the wouldn't masked recent been we're execution that again. are see to would that confident we'll confident we margin and we some that that, confident on approach once yeah, I better. get the myself So, as summary, estimate and mentioned I that

Okay. seems smoothly. this be to cultivate to a down. integration And Willbros about you you take if going transaction? acquisition want more the just Are little pipeline debt I one, It pretty could. thinking starting and of do integrate got you or time Willbros kind like to that and last sounds again

some it We've want there. it you've I turned digest find We what got, really Obviously, always we look continued at not, out very believe been to but that or Well, we never one liked. acquisition-oriented opportunities didn't to off. you a organization.

get won't and all. you on. that will for hungrier at go acquisitions change I that I You hungrier can the tell see as quarters

ball. keeping time, the – think, was the the pretty one. the the was off first take proper we company integration of getting by same that didn't eyes side I year, the to the I but acquisition. will pretty our results, have execution another our I'll company; after for yeah, you've So, of start, But, or And our pretty it focused doing on acquisition, focused, be eye hungry yeah, the at the seen

you. Thank great. Okay,

Yes, sir. you. Thank

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

Hey, good guys. quarter. morning, Nice

Adam. you, Thank

Pete, I'm miss going to you. really Congratulations.

you. Thank

it’s it. years. believe Can’t believe XX Can’t been

that. Adam. joking, fun can, just with only I'm Pete. I having Adam. I'm I’ll say

you how think said that on mentioned, for guidance I you legal still $XX Pete, trying think, from I'm The settlement. I figure October one there you in annual to get million QX. the you the touched we and kind got piece out it. of

is So, QX? in profit gross a margin at some kind included of that

That was why numbers What they point, some are. we to fourth what that didn't that quarter should at and I we that's during to a that QX, anticipate upside there the the and related able to get are so said We fully No. some matter until QX. of cash the get there. resolution actually potential this time is be

no? into that outlook QX But baked kind of is your or for

is positive outcome, And I Adam, But tell think from some expecting we're in are yes. can't that, yes. I we because some number, specific you think I there upside the litigation.

okay. So,

that the up QX? then, we versus So, lot is Pipeline a in – is in the segment. can margins that did put QX Power the But jump segment,

Pipeline Adam, of Primoris – I Texas. see some you, jobs we've mentioned think the because of on got should I out We definitely that, to going in West

will let's rain, make have in fast hope to by and – of barring enough year, But to bar can. bleed that that is let's out scheduled now. think, as of comment by they’ve finished some and over first going And rain as weather-related into Now, so I had rain, But a blowing one originally we're part any we mentioned, I going the year. the next got be issues. by little going be to Texas but a God, the West to as it job bit, that hit end because was

ACP, up us we in issues in you out West Carolina both the of As Virginia. Virginia. And and bother North back much now And I weather in we Carolina doesn't in because typically, Virginia the as pulled and holding weather there mentioned, of nothing mentioned, too there's North hills.

there in think see movement I fairly side. Services we bit Bridges going well for That Field handling a also. adding Jeff yeah, the so is us. think Pipeline talked of And side business we you has should So, to about the burn are quite that I also been backlog, unit some

Okay.

there's well. pull-through Services So, storm profit Field about good some Maybe work is And of on then, QX as some in the what Transmission? side?

done comes work we in was of October. the Well, some have still that in because that

there. for want in I there’ll pray So, never some be a yes, storm. to

of go from storms a there uptick in we I little month will hope the their don't bit more have October. do any So, of the guys or see But, you that November yeah, the have December. to

and as November concerned. is is a for as Now, typically, their them far slowdown December market

effect balancing a be there. may there So,

you'd like forward? end you the Okay. $X.XX, or But little guidance if into if end a it this or even year reading of going I'm be full below low kind $X.XX maybe to the QX bit relative to right, the were low at the of seems more we comfortable

I the we if up it to too give of come way, in Adam, we sure, to there's to Pete parts there's That our know, I parts obviously When much because, the click comments. has I come that, the said it. think – pieces. high a That's really for and in you on lot quarters, last And you're last moving and pieces used just give I in And say in well to everything Adam, organization. so left down it his where you on it side, – the rolling try on as credit an me now Well, quarter not guess, low four I'd side. of very and always on you're lot was a and why quarter, at together. maintained you moving annual at. it when prefer basis,

Good. Okay.

again. Okay, thanks

you, Adam. Thank

KeyBanc. line of next with Afzal The Please with question your from the Tahira question. is proceed

folks. quarter. the on Hi, Congrats

Tahira. Thanks,

Thanks, Tahira.

with were But to seems you than spoke You it up us, guys $XX it. the ACP, able for make to reduction. million more

So, congrats on guess, is my regards really I in Pass. Golden first that. to question

on You already, you that said started some work David?

selection it very the sure portion, A was certainly to realize have get it's anything other and some you Very point things. than at time. road for very that in sides an not I us Tahira. We but do this small minor. side make on minor, and for things. work indication We're to want doing

yeah, out trying form so, small to but are are it, – currently. we a We with certainly in get – there

it of that's reason there they're In E&Cs, whole that So, pretty past, overwhelmed. larger the seems for this asking I be guess, bunch I'm translated time? all Is different of orders calls you've would from the a because yourself, had any into some with David. the

again, Ask that Tahira, I very because hear last didn't the question part.

again. Sorry, that say

these So, to trickles Is to figure would type nine just next million business my time any if this overwhelmed. I be – means over of to mega typically down E&C you there a to it projects, names orders. different the $XXX start get trying months? typically, reason was with little That larger out six to

No.

understand question. I Now, your

I trickling think I was what That's us little we're to current interested typically you down a there. why there slowly build start is in and doing. happens, work doing absolutely from bit you're right, of that will Tahira. us That then it out getting and was

much it's way. I So, going anticipate the very to be same

quarter. the solid it, very operations, okay. Got U&D then, And in know your I

love that much this something of Sometimes from they that trend else the this towards that one-time the don't feeding sort some much of should Street. seen into consider But is have on more pipe of moving aging or we get Is is year-on-year replacements. utilities growth, us We accelerating how this sustainable? in X% quarter? there

the on we've any should you of on think No. Utilities Distribution one-time, what I not don't side. & consider got as especially

trying acquisition the you it things rate think basis. the we I was found due we we in that we remember, I million, Willbros of you it Distribution not U&D the think, went really the they was were portion, it, we through $XX to came That have a to it. Utilities U&D revenue. diligence sell the portion exciting gas of once substantial moving work In default. got I that weren't that, in space run going U&D about to that words, really it because this if through side, portion other into T&D, been coming annualized And by T&D found $XX of gas say to was on they but want that on and an was quarter, into million when there group mentioned was the T&D on kind very T&D. during so T&D one the with & It work. we out our and out sequentially of there over T&D

looking we've that statistic that new nationwide. was to grow. through minute what of and kind them on we I it publication every organization side can interested day utilities a And came add had think – When some us quickly of the gas us natural we bought – not work. still NextEra to here customer It done. their like utilities was I additional in bidding to I work and for we've And that other now the out come U&D X asking start got one that and Tahira, sharing. T&D companies a So, entities continuing we're find the to for Florida, an work and their some average ask previously is I bid in more come both of continued us, see, more asking Florida see in in U&D

down currently, I So, don't Tahira. slowing that see

it, there, own in thing. revenues binding regards million We And seems very cycle given more have really okay. we lines. three that's out me, its to commitments the doing course, XXXX. some in needed, It and seems line the you question ACP. Got maybe see still of last for of And around need Permian $XXX to much be even as then,

to As even you revenues your feel you keep XXXX, up? look at main flat line do can you

can what? tell I Right you now, flat. it we're opportunities keep we seeing, think with the I

would announcement for that of we I think know, me you in too to project going additional with except that – full lengthened work that the say saw to because out on pretty be that it up added Dominion's XXXX. we're the I'm go ACP, for off we're it's early line And actually I to mid-XXXX. that to they’ve Rockford, going sure be

That's the I Pipeline on about think a I that leaves I'm the we us relative Field that what's going in Permian for definitely to certainly Primoris And and Services. feel flat. fill out And I will so, half Rockford. fill comfortable saying to And about see that. staying year reason

me you a good would and grow, to continuing XXXX. to tell for early run too with but that XXXX So, that

got I therein. think we've visibility

tough times. Okay. Pete, through a And, hand-holding sunny find to visit miss you a reason in Thank all the going San we’re to hopefully, lot. and for you you we’ll Diego. patience

giving the will I no, this, say not way, that, for guidance we’re Tahira. Thanks, XXXX. by

care. I try. Take

from line with proceed question. with CJS is question Jagoda next The the of your Lee Securities. Please

In was guys Heard I you on and on. I fairness, hopped about talking call. me another were

place. Safe

you, So, years. congratulations huge everything first and thank a the and for foremost, a Pete, over

apologize. been Secondly, I that's ask asked, anything if I

be the So, first guidance? an what have in that in estimate of quarter, the and will QX expenses do acquisition-related implied foremost, hit terms of you that's in

Yeah.

and million $X between $X million. Somewhere

don't quarter, if Okay. it's we this are go in it the related I more Carlsbad, got And where line know end then, I think and… to was but there? to to supposed time

a did there’ll We still this substantially burning got complete. to basically, things revenue But quarter, on completion it's Lee. little Yeah. do. bit everything and mechanical But, be We've it. fourth of cleanup reach few a

to in And, complete, we Is generally, profitability. you expect there release when tend that to remaining QX? projects substantially profitability should get any

There will come out. some be that will

the you’ve already is on original it And said Willbros plan Okay. I performing with expectations. take

original it thought the that we're little there for be for where like the at ahead acquisition? we'd update Given EBITDA at any this guidance least to is we feels versus a point,

I it and almost Lee, to promise Well, never EBITDA I the all way through made again guidance call. give the

we're Lee, that think, we're positive of is pre-tax point what already at the seeing I earnings.

We it sure we yet. of if now, doing our but do said. expect we that a have midst to what we pencil plans we in will not I'm better XXXX than We're of integrate the we that the in it's and costs this – have now. And quarter. the businesses. still reduce expect the end profitable It opportunities by will some fourth continue to continue to profitability

So, March. I we think forecast we'll $XX the that had million end up than in better doing

That’s it, leaving, guidance. would talk Pete, all have. EBITDA Well, I sure have again. soon. like Thank And, I'm as should anyone I you, probably give to asked and else we’ll guys, would you with

Lee. Thanks, Okay.

Thanks, Lee.

is Please The you. go the Thalhimer Davis. Adam of question with next your ahead line with from question. Thank Thompson

in Thanks for letting me come back here.

pieces Power moving in are high-level ask, with thoughts to for XXXX, lot wanted seems pushed. kind Power a of projects getting there's level, just like Just some your for high XXXX? the it of segment, in What

projects? and Power-related specifically you to Power So just Power, Industrial? And want talk & not

whole segment. The Whole segment. No.

Okay, okay.

seeing opportunities very, that some optimistic still some quick. chasing. Midway-type optimistic, to Just it one that want guardedly our segment We're the of on very we're another of going come little a but way make those to sure. projects good solar projects I'm will But I'm bit. very

As be And until XXXX. think a mentioned, would going little that's don't any West Coast, delayed. more to I there, revenue the on stuff gas-fired bit the come about I

quickly on As over in there Power, area, that chasing, Power. although few Southeast as just will major a got see opportunities anything don't I we're the far we've break pure

separation be that industrial the we've Now whether began their organizations when begin to looking on air release Industrial, site, of talking to projects things start it to start nature. or of gas projects, see we industrial already hydrogen-related gas some

the when petrochem a could backyard. in And then, get – group, in for the we company. one that the projects close a We every headquarters three Jonas' chasing, major or there ethane And our with of we are in throes certainly could be talking our these substantial facilities, in look between Louisiana, Houston at down of LNG that you doorstep of are one main another Baton that would are in to be obviously, cracker-type four back and Rouge. our those

started some are group are to Beatty's off, – I quite we begun Tyler, engineering running it, that then, of quick that engineering in plant probably and a they doing So, well. business has in from ago, development the peak could already mentioned that they're Industrial-wise, in because know always that going And we a engineering executing currently in that for we our Jonas a quarter. think little business that group PD&C pay that we've the pretty early they I well other uptick up FIDs I that years we first That will some front-end fairly got announced the work also engineering engineering $XX those million-plus company see projects And the work there that the another OnQuest, are then, plant on quarter. that XX say started shaving are that identical the front-end to first you're design design. we three projects. efforts got had, materialize I think perspective, has There's that unit that of therein. group and the doing, quite keep to they would Northeast. that good And

So, into early expect of some work quarter then those of also second Conrad's off Jonas' next or the, year. fairly I will say, group group facilities that and get first

that. appreciate I Okay. Thanks, David.

Yes, sir.

David Thank you. back remarks. turn closing floor the to now I'll for King

really really to a to great hate see third in job to us. interest We I a know I questions. I day. for everyone, Pete Well, And appreciate – and everyone call. said, again but as have encourage everybody participating you quarter And you ask do I want vote. I to can our do good I and appreciate want your your go Ken Dodgen go, that out

we part Good thank have in is you much-cherished day. the freedom this call. country. And for think freedom in vote participating to I today's of a

will today's conclude conference. This

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