Primoris Services (PRIM) 11 May 192019 Q1 Earnings call transcript

Greetings. Welcome to the Primoris Services Corporation reports 2019 First Quarter Financial Results Conference Call. All this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] Please note, this conference is being recorded. the Investor to Relations. turn Tholking, host, now President, Vice will conference your over Kate I Ms. Tholking, may you begin.

Thank you, us joining thank you Jeremy. Hello, good today. morning, everyone, for

David and Our our Dodgen, Executive Chief McCormick, will the and speakers Ken be President Officer. for President; and Executive Executive Chief Financial Chairman Vice Officer; Tom day King,

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

www.prim.com, by slides call. You the investors. to and going then can website, site, the selecting for on corporate find presentations them in investors the today's access webcast link to Once our events section, you'll next the

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

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

today unbroken first-quarter We're everyone. positive earnings. streak morning, pleased Thank to us to our review XXXX Primoris' Good results. Kate. of quarterly continue you for Thanks, joining

We and also our billion, units, first-quarter model. increasing Given year-end first many achieving came our time the our growth forward. QX our backlog talking we record to see largest revenue quarter history worth moving backlog demonstrate mentioning of funnel backlog faced for both seasonality and $X.XX million. quarter while our that of business Primoris' over over go in backlog by diverse the our results from the business our of markets ended with $XXX the the unusually benefits our weather about into It's in traditionally and of opportunities extreme fixed a fixed MSA of now some that see these backlog. we're We've some pleased been X.X% projects usual

pleased side business, and that We been first-quarter to our lowest also level the revenues continue quality thanks cost and trailing successful to success percentage a a on is XX on that results end as keep front sales, in revenue reasonable the I'm the is on with both extremely and looking of now the SG&A of SG&A of years. our earnings at exceeded focus cost our it's to our At as month and execution the disciplined expectations our seven our day, management.

Brian age of structure. board full thank and we Last I our the of the started members. Board Meeting, want the Before for structure adopted and process press moving governance I of looking Pratt Primoris. to On Friday, welcome and dedication first her the At few year, years at of the we we stepped in into him announced board segment to we for the retirement remains toward a want week, process address succession I Mashinski Board. declassified began also Primoris to term. mandatory leadership board her our the ago, as this Shareholder we to and Friday's and Carla morning's elected the to valued Annual contributor board to A director became chairman Brian I a last and executive board change his get release. chairman a down board. results, in

right chief John work Primoris' With leadership, John but We to the is our Tom and promoted She new structure to to is experience our at operating the planning. that to and great viewpoint also area worked these to only officer, we president. this companies. things and -- to as family jobs focusing us of thank deeper Mark also to our the want strategic Carla he's with the big our position. left a I but philosophy. units, addition one say in and we so Primoris' complete that let's industry pleased recommitted picture civil a COO, have new dive continued members Primoris. sales team long succession me our as plan project strategic at is. growth, Tom a current exemplifies John closely let not Belton of will Though play operating for management with behind to of civil of at board Moreno, midyear. a [ph] for our course, with diversity look large took welcome closely seeking the comes our implement background on a I his operations board. tirelessly more part That our with now our almost help to me beauty, continued all our want And looking think McCormick operations I'm may Temple are us begin John jumped of their on to business highways I'll with growth with growth, quarter you Buchanan a that projects. heavy segment. complete to tell of results. have and opportunities first will working into you into

we will four we we in $XX award last awards build forward, Louisiana, including the we week. the last As million design of and three we focus have awards won bid build announced design more on look

projects will Lake hurricanes mitigation we seeing cracker and softer hit Charles start release the repair to the up the confident pleased the have say all progress We substantial the Beatty's mega would in XXXX are Coast, Their Gulf larger in XXXX, now the they've that Jonas had than have wave was address Gulf liked in I'm core region projects now I&M made many feel and engineers revenues and of the to years. hurricane recent After corner. ethane team a along win to which the few wrapping and have next FID of toward first Coast in funds from their that of for the petrochemical up share of we turned Primoris LNG quarter months. past

work with benefits for the also industrial plant the & by Coast. award hit segment industrial plant Gulf Along pushing DeBarge, with work win opportunities their power, this that a balance in new Constructors, of being sorry, Rusty Our engineering Primoris in hydrogen to mechanical second recent the in Primoris at half - I&M, most dollar believe continued work. should work, that multibillion they're has chemical year. multibillion-dollar we the led backlog from projects of in chemical projects of pursuing

of opportunity the see market. plenty also We in export LNG

addition an terminals, take FERC per export applications XX.X of In of their -- additional FERC billion opportunities. capacity. currently FERC these to with have cubic advantage the they to feet have well for is already pending that already positioned approval, day Primoris LNG

engineering with team industrial group, working is projects. closely our Our work pursuing & refinery construction, design Primoris on also

as prospects from growth OnQuest continued the We under to of Primoris grow and funnel continue & our engineering design construction capital these $XXX expect for groups, projects. million

turnkey sales Primoris work to well our the working a capacity. markets. with also quarter We're with and hard with to to for recent are XXX Healy's next in continues closely in more utility-scale their our industrial on big project to battery solar prospects ARB award the The maintenance Coast, farm market Renewables storage to solutions MSA customer. projects for West provide this strong and crew and compressor extremely They're since doubled solar are perform battery our station West has seeing their proud project Tim with XXX-megawatt major end. ability our energy continues as working market. being known we we're for teams solar secure the of power becoming storage team On Texas grow coupled of of complete

to but and Prim's I the industrial also approaching earlier. existing team opportunities anniversary just our exceeding the ARB's renewable meeting we're expectations. distribution is market that construction, MSA transmission Within market, the for or servicing into mentioned entry our at facilities and looking for of Jeff similar electrical not one-year We're

We that continue our utilities are spend as and transmission. utilities major than MSAs to have butter, bread distribution with more several money on

the market, largest growth their quarter, on they are we at had Gulf along same up faced the new challenges new while stand-by. that wet time crews seeing While of a severe with distribution and our This Coast. Texas the market a region Coast mobilized remains some customer, past weather East into

We continued modern, them replacing leases fit-for-purpose equipment also to begun terminate with more new a older and fleet. have

by a faced faces the now rain California, At Reeves can grow. the be segment state. seasonal in shut time There that Artic solid Doug challenge expanding does weather quarter and the the entire impact of to MSA condition. but were weather and said time, revenue our utilities we Scott in utilities year. and although Our Midwest, the XX across are distribution challenges the same and in the natural heavy Summers also QXC to this geographic first on their were the for recent weather this underground it because areas throughout with not their but ARB snow of presence entire used always QXC Iowa, temperatures. was outlook & team presented awards extreme. The days the freezing down continues Missouri a slowdown across gas focus for quarter, work

grow with We the expansion asked and to there. us presence are also pleased client in Maryland our has our

continues to Our work grow open also. utility shop gas

these Texas, on had have for the toward optimistic base and gap level utility of opportunities Coast more past will several Josh under the remainder help many steel are with out the Across to take major Rockford where well Rockies an aging remains pipeline. infrastructure opportunities next relationships good done the quarter years to begin had we And last The Gulf to has our distribution on medium bridge Rockford We Texas, solid will Basin. last through in for to to expected this in East in group the we announced largely for new great expands up When XX hit diameter impact that of leadership and Midwest it now but key with of Primoris Rockford grow, awards. contractors. work to current moving on programs completion focused segment This both outstanding despite see seeing There Ramsey West the and growing MSA beginning of thousands Coast and certainly Primoris Jeff it'll We believe a our opportunities. into McRae's life grow West the U&D as team to expanding for large year. Replacement significant for continue networks Overall, presence our our had services planning newest direction productivity Coast projects unit largely where are recently of progress of segment. a snow and Texas, the we problem address strategic Primoris the third-party is revenue, Bridges, two customers. Patrick customers the marks emerged. and and for represent for will the rain the along the our the continue are pipelines round next the our extremely segment, markets. again and well at cast several as in a United in opportunities strategic Permian session, XX Our of first for acquisition. we States. revenue held footprint, that this large looking and MSAs least, pipeline our Primoris positive have they geographic to these provide and finally, significant strategic XXXX we're of be last growth. miles quarter. profitable They useful are field seen Primoris it Florida Atlantic our once of plan. market, this of culminated of a of a the gathering are all recently T&D well that year's The extremely services cycle cycle this outlook of the networks iron and their outsourcing their to Primoris move planning last that business major and as entering funnel construction more And made beyond. and year both positioned a order of underground us themes solid should what quarter Under employees about following year, projects end for stop-work not pipeline pipeline. on to which focused in turned our cross-section continue which the revenue. and

continues U&D revenue focus Our us, for T&D MSA-based a the to markets. both in and be

market mentioned our the have market. the interesting previously, of emergence making play into renewables And presence I and attractive. are expanding provides sides to As of XG the more fiber both the an opportunity the services market telecom build-out technologies

numbers, of Before employees. our it a the Primoris for of they all over the thank are the dive to doing I I in turn of quality. work to that more Ken highest Not the work, they understand detailed safely and importance want dedicated to only

as look improve isn't job Our it the that, to turn I'll return lip for night. to our management every that it is just over goal values can With but work culture their side. we priority every how safety, home make employee paying it to to the safety and families We to Ken. No.X absolutely Primoris continue on service safely clear at to we

Thank good we balance you, to questions. results, move review sheet on I'll David, your our everyone. and first-quarter cash morning, guidance XXXX before and our our flows and

were million we in the These closed partially utility to project increase. increases segment segment main and Our $XXX in power million to of weather. the million by segment which accounted compared XXXX electric T&D over the segment Carlsbad of for XXXX, XX%. revenue were $XXX lower The which accounted quarter increase $XX million to first $XXX our out pipeline this an was due contributors power as first-quarter for the and revenue the offset

Our customers revenue operator first of that accounted quarter our X% the were large a of and that X.X% a accounted utility large in largest pipeline for for revenue.

be the for in prior in $XX Carlsbad with revenue first improvement prior year, was profit the compared along $X power gross or Gross the million the $XX X.X% the and weather other X.X% was margins to we our in to growth million electric quarter which T&D our first-quarter X.X% an which strong significantly year $X were similar the margin And to prior the This that for our the year. project was discussed. line are an expenses already not we to increase of out challenges our with this attributable was to year $XX improved progression quarter. the compared utility or see for segment. million David directly of Our add of quarter in I'll was decline expectations. first-quarter due that expect quarter, to almost XX%, XX%. seasonal in SG&A the million million the in performance year of full

interest of $X.X the swap. $X.X $X.X last rate quarter the fair per Net million prior-year of earnings debt in quarter attributable XX% is states mentioned million the rate certain non-cash the work. only However, $X.XX income we share. of and well of to higher Interest XXXX Primoris the at our first first first first due was compared Willbros XX% year the and quarter. of and the a of our attributable SG&A I per first slightly first increase earnings higher unrealized increases amounts in revenue non-deductible February cost expenses result in of $X.XX rate this the a quarter continued in on in our of to mix the in higher of as we quarter on as quarter in was per as to were call value quarter diem to exceeded million, income as we Primoris due cost revenue. by expenses a to which change when revenue continue This over share than expense tax the in X.X% XXXX areas increased XXXX grow to control acquisition from reduce the loss as to X.X% Effective

million normally And Excluding during $XX Where certain our our customers $XX expected of cash to payments receivable from decrease million in from is see we increase the delay cash, in customer the permanent. ended in of almost the million milestone of with an $XX joint roughly cash ventures, on as we million. which This due that $XX going a sheet. accounts we quarter don't quarter, a but through payments bankruptcy. the balance operations is and see quarter, saw in the timing used during we utility first

new the $XX adopted We during leases. roughly accounting earnings $XX million standard collect notice the year. capital the on On on the equipment on liabilities. of commented two last current prepetition remainder expect cash. to that lease operating expenditures mainly spent receivables operating portion net us, during but the spend liabilities. quarter we but in all post-petition in items quarter, to income is balance go was assets our we still operating for our but process. our bankruptcy line FASB's we included current in the and will in lease call, is There interim, no we on million As estate affect liabilities our the to XXXX, customer through owed impact accrued noncurrent item for January million on liabilities line have real The between operating all it This is the and you'll and work, of to X, expect lease sheet, material current and new the $XX

of billion, $X.X of $X.XX XX% billion MSA backlog highest as backlog Primoris' backlog billion the of XX Our total was was March David backlog. or mentioned, $X.X history. in backlog or total Fixed total was as and XX% backlog

at Our per guidance to $X.XX share. XXXX for remains fiscal $X.XX year

now not believe mainly work sometime Our expect we With Atlantic our the our of very can Jeremy? still in with to pipeline pleased your operating will back-end questions. changed project be loaded the assumptions turn first-quarter guidance, guidance that, results, XXXX early in are we continue third since Coast though most to segments. late and to resume on quarter, have in we quarter months our two fourth we underlying initiated or we the this

will question Our time a of proceed with the be this from At comes line conducting Tahira we session. your instructions] Afzal [Operator KeyBanc. Please question. question-and-answer first from

Hi, team.

morning, Good Tahira.

Good morning, Tahira.

Good morning.

in really your the how third up first get guess to GNE of mentioned and little we quarter? Is they're also loaded really worried to back or light You spending? point mean fourth loaded. all that second I in were spending quarter? really and that, the at in had then that commentary Does progressively adding there about love back it the said from you to start signs Or see levels. utility margins getting of a picking do of would be the as sense that So clients were the two behind question, some into you distracted really, And year? all you see through and that even California? prepared release, in is and work else, terms we weather-related Or someone be should - this the know,

the Yeah, revenue margins with year. way how we QX expect you it's trend same our QX start Tahira, saw up last business and I'll the margins. does, to unlike into not

probably year. for X.X% point the low our the quarter is So for

would a we that as the toward And curve normally move the that of XX% company operate through try to year we trending hyperbolic balance the in so basis. be up back it to range across a of for kind full-year in margins aggregate XX% with

Got it.

a petchem as question, quarter suggesting think holding bookings in there story? seems all or more fourth sort the second And LNG the and of second quarter, coming were but just excited you're then than Temple? on second you little David, just you're both the bookings some maybe commentary, would more signs you that of half I now And it say a Okay.

of me some then let address to we're it opportunities some ask and of address the Tahira, McCormick I'll Yeah, seeing. Tom

my end at because and yes, the and where of obviously to I of some Tom some the in the in all, moment. we're of am than projects I break excited of now you them I begin on kind see FID fourth those let projects of was quarter as stage on to at some First tell certainly smaller in a we're more move to through comments, I'll of beginning mentioned the

excited about more So it. yes, I'm

spending other utilities on couple that the the a Your little of slower. we bit question saw

them I go process, continuing them of I even a going kind to in is the One to pick distracted their up it's quarter, throughout you in is ramp through as getting of we're forward the out we That's of second, comments fourth. it said California year. will of tell work think the first although and I in in though little kind my up I'd post-petition third even expect why slower the

issue as customer. wet the us one much other to up more with some on weather-related utility able be caused to of really was a ramp not some The weather the other of just of spending and that that

am of those why of bit little color I you give one some them things, but opportunities? a a I as see both Tom, more the So temporary around of - little flavor kind or excited. don't

to We're Dave. additional as of we prospects solar an Tahira, the mentioned, opportunities very our discussing of and now going forward. extension a excited facility. for extension renewables, David agreement number units of we're clients with talking Sure, that segments a about clients to in number have now actually, right our on with T&D. we’re, with a client business different We're in an negotiations long-term in MSA a we're

and opportunities $XX in three-year areas their MSA moving T&D we their some $XX million have extension ARB they the Louisiana into industrial for our existing with are they're opportunities pipeline where you They're ranges group in still groups, stages a clients industrial we're non-union in a very perfectly Midwest range are and Rockford petchem projects our or of is that markets. million to clients on our shortlisted our projects at in in of and in we're the discussing on fit us and negotiations discussions which active Both is client. talking QXC, which respective different different an that have Primoris look those And means projects. the the which to Texas. in markets then pipeline on We that in Midwest, with some is PIC, group and if on in expanding projects. with

groups in groups. work a bunch the work. Rockford, up of negotiations there's opportunities they the picking there a are to so lot of business our up for to again, I&M couple has opportunities ACP got the and projects of a So with a on bag. different Primoris mixed delays large running a out pipeline It's are bunch trying work but of extremely active to due replace for pipeline are pick in

lot the there opportunities across of all So, business out units.

Tahira, last there couple asked of I'll that without more said a a one And what in, to Ken begins of saying and before work to that you margins. add of years, work break, the to was bit what kind depressed. about that the competitors thing, as earlier are add we lot this Tom there over were And obviously, I break little out margins think

As begins break of up, to of more margins manpower that will the begin tied work to and some creep begins up. get that to

the do to I year get. the some of that over half actually of look going improved typically for even So margins work, the of especially latter be toward forward additional margin we on some

it. Got

much. you thank Folks, Okay. very

Tahira. Thanks,

Our next line Davidson. the with proceed question. from Please question comes D.A. Thielman from your of Brent

Hi, thanks. morning. Good

Good morning, Brent.

Brent.

feel guys convert there & it. within to hoping I know group of in this give lot are pieces engineering year. the us maybe so moving was a Yeah, large this power, industrial revenue how much can of backlog would a you I for

Yeah.

exact but that. number, say of can was one like want quickly in you. to out I XX% that remember put actually the or something It's we find very for press releases, it like Ken I - think the it can't I

about, you did which sorry? segment Brent, I'm ask in

Power & industrial.

industrial. & Power

reported Power & convert our power Industrial. in in the we Well that in XX% Q, next quarters. four will

XX%.

guess, there, The other announced you're looking awards. looking on pipeline, like few Okay, you can what than some you size good you've sounds the us feel know it opportunities - for at give give you're great. bookings And of become there? out better then stuff I some of I a at, announced, – any potential you've can

And know, and small both years, Primoris the the the and do Primoris additional negotiating the capabilities to pipeline, over in large. added and Well, actually tell Primoris large it's last you size some we're they're I and both as gambit, whole now capabilities pipeline. systems pipeline diameter can small you Rockford so large and the It's and to the few able spread across on seeing, actually it's we've diameter side working others. some on right both

And so, way TransCanada talked States it focused but of I are it's small same we're it's still of - kind to the about. best it about see of a and Permian, both United in the answer projects lot projects Texas, other is with that and and some some of guess, and large obviously the the seeing on the throughout you talked

lot we will So out do with of actually there there still going we are group. the a got we've opportunities yes, in But but there go believe forward. plenty as pipeline without of pipeline ACP business or forward, ACP, said, out opportunities the for

think it's within within focused still actual I guess, those of transmission the your and businesses, is within of a segments, ramping more you talk lot on transmission, the kind progress the U&D of on I in more Can that? it transmission then side. question piece And kind great. about more Okay, distribution [ph] up

you tell that I'll of the group, their Chapman T&D Engineers, Well, were on from side. kind business. transmission When we transmission group, our let the they bought old the known Tom for standpoint Yes. T&D

And we so really we've how to began up. that can ramp at look

and transmission up the so buck to the focusing like focusing as as on area? on transmission the business the distribution side by know then we ramp in what do But that for Tom, first our want get bigger quick of distribution side. we You, to bang side, add you the to is side doing felt not we're

trying had from gaps year Willbros, as we filling - T&D map as gaps. to and we're Coast is you those they at last the East doing fill bought we're walked lot the thing One of Yes. group we're of the a

bought that additional left into expanding in we when A were the we're recruiting had we're Willbros markets. have come or so of back and So growing new the employees markets. lot and leaving employees we're

in giving work, they're We they that now, wouldn't them past. have that the company's clients financial so give them the have stability confidence in

markets. And group the, and equipment, the expand, new now company, in into up we markets And we're work groups. adding for up in adding for the the as so new opened the thing opportunities side well to people pick fill by them gaps, speak, transmission the grow our and seeing these clients the are stability as health that with helping well, it's existing So as to geographically. able same they've expand

one so a profile, the and is fast transmission up in side about that on mention profile, risk distribution the transmission that how we take higher we're and careful that how the side risk transmission a more different unit side. also quick But risk thing than carries being side, about different build very

us be indicate. very to what is seeing you're I selective was So trying

And guess, Okay. that become mean, I XXXX? component I into does significant was XXXX, that more

definitely. Yes,

Thank Yes okay, great. you.

Thank Yes, you. sir.

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

Hi, good morning.

Good morning, Lee.

Hi, Lee.

side, well power on the large up making really are held the starting are just So, a power margins? as despite revenue some them margins like that positive job. looks of lack they the as in lower sustainable what's mix good And and the the gross those are? How

and it in first Part the the so work of of part power, it different quarter. but the of Carlsbad is Yes, margins couple also the in Lee, power project is things mix, there. closeout

at strong. we're to So opportunities to mix And work still QX right of remain regard. now little but that us we're strong. last those Combination year, of the bit should the balance year, the looking fairly margins help that a down and of over in compared of expecting

driven you group of about the dynamics industrial lease has the I'll kept forward and some the a lot work you've we on about in in T&D know, of California, side past in activity Two going margin well for on the add there mentioning that talk them out years couple heard us Lee, Yes. but when that last there. the side SB-XX for union of it.

And on some of that so some talking you as loose begin good will continuous the of throughout margins improvement see that we - there, I'm been work down and improving. and migration will has we year. we've this go margins what about a indicating believe for the I break Coast why you'll to then Gulf on see drive us out - the margin That's as go happen

controlling then you as of ramp Okay. Great. quarters? job significant year did full in a SG&A couple of for like we QX. over should the How just percent light of looks SG&A, revenue the about in at And next think sales it a the great looking

Well, for I'll money, global corporate address I how knows Ken SG&A tend people us it on comment, to rest want are just address I so a me Ken who works with let make much the the field, think I then in of overhead. - costs the of say to I'll let because the focus because people in fields everybody works kind that

them So watch is, let's up. SG&A creep guys that my to comment don't making sure our costs

Moerbeek and and things I So it remember always Pete of that well down that I've it somebody that on us, said guys we have was I we've of will felt X% done ask time, keep target down with to range too get think but say the lot a and years a as here be I that I of never and guess, at you range. as able get course, X%. don't range much, that, Ken to to we'll call couple us X.X% a could ago of in was when

range a it's want mention target But of me, lower. anything? X% for Ken, so if you do to not And

Yes.

to a that But year. to percentage you'll dollars, low over in X.X%, ramp in between QX. for So X% on to basis, range us. But balance and I good them to the still of going and bit absolute for QX at QX, mid-X% expect control the X.X% continue quarter the see would little a a costs. it up them course was of We're see

Okay. That's a Thanks lot. helpful. very

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

Congrats QX. morning. on good good a Hey,

Adam. Hey,

Thanks, Adam.

Adam. Thanks,

Okay.

First of can guys hit you end the if back start low guidance question, ACP doesn't up?

I'm can you hit sorry, did it? say we

Can you low $X.XX. hit the end,

some little cautious we're cautious at guidance, it. gave - we're break, that earlier not ACP. haven't now a we ACP, projects not little I'm a that we on Yeah, is time I'm or and we begin they And our Yes, I'm guidance that in to - broken just not you this much guidance guidance you of told about our reason - reaffirmed the on seeing yet. I those increasing there's because

ranges it I'm me think now, or - put visibility see so where our you're second get let in more our will comfortable I to I going quarter, that And feel way. obviously. at, Adam, the right is with range

to see Great. guys in year? Is half? you back this And in get how expectation a then up the just trying flattish of for year-over-year shaping sense is up EPS that the then EPS QX kind and

- Ken, would if I No. you...

my year be to slightly we kind QX about of the to year. right And probably the will best year-over-year. $X.XX to how of QX, would this same, now. guess that's to from last be and be flat Yes. Yes, $X.XX up think I going QX $X.XX graduate in up to flat we're

the already, then bidding, you this that? talked a to a times about you. Got is get guys And the how pipeline pricing Okay. but for is sense have within trying few

competition until out was bidding I'd but was to there. nine months Up probably six the say, last, robust, still the the

are As competition crews the getting up the some the ease are and and begin taken, some these do. just will will crews to getting shreds will we margins those the of of availability because like projects the of awarded, do higher It equipment. of so

I to what bit. that begin a seeing we're right say little So now is guess, I'll ease

pricing kind beginning better? So get to of is

Yes, yes.

Yes.

then said, 'XX 'XX, talked think And that when pipeline the for you On bidding. that Texas good was 'XX, about, even David, I and pipeline? you is that Texas outlook

Primoris was it about another pipeline, pipeline, it acquisition and field Services there were was Yeah. I also Group, talk specifically what our when renamed Services but Field relative was off years Jeff then diameter pipeline remember more about and things made approximately group, Bridges' and we a with our we and half lateral number talking Primoris Primoris lands sale I'll What But we of pipeline have to Field those pipeline, and well open go services pipeline our year Field let do in as did and we at then are services Coastal Willbros been I of cross-country And Services services. field if other se of of station and also they said and field there the we what - work year two me Sprint acquired their a but opportunities to a you parts obviously small per in combined the large Primoris And taken the diameter. is which not the as really West two we pipeline the area, added ago around up [ph]. seen have Primoris pipelines ability ago, Sprint Primoris shop. Texas, the

their breadth of things. the and capabilities increased we So

actually for we services field this next years. Primoris well good three only also opportunities not would I you, So to tell see the pipeline over but beyond two

for Awesome. Okay. the Thanks color.

Yes, sir.

with D.A. Thielman Our of next Please question Davidson. comes from proceed your from the question. line Brent

you through the update thank that I off, projects if you the one on think Should on was guess, another I then rolling business, into you're the of but apologize I And addressed a civil this, those? through translate processes with faster Hi, margins claims you. challenge one. still know also year? said the in I recovery working any

margin see the of I'll to kind address types of projects claims the - let Tom quick Sure. therein. beginning about the stuff in some I'll I talk of think, address I'll of some moment, of some with, real some improvement and let Tom we're a

that put that some at did I-XX activity, We we I we comments our least of even coming couple on think projects. get are seeing some a in in money

will us Temple one basically off and five We roll have of finished to four finish for is the jobs, only at it midyear. left the

- allow through our of margin will Tom? it that, of are okay there process, of ahead the and out and like it's will any the the in worried just things that process that. a about claims improvement. seeing of on opportunities we we're our of to and put on going for go matter timing claims. Relative in All to all and us all the be indications claims, I'm So not claims

build margins we the So then that see in in on being those. we're for relative we are improvement, bidding work less A the selective the going much performance can design have about won in We Texas. projects, three jobs four We're you to of now more pursued that well. of bidding. margin those and the opportunities Louisiana competition, we're Louisiana, number you and higher and get

improvement expect we over some of to So margin the year. course see the

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plan guess that Okay. talked you maybe strategic at. I things of and some that Well, then you're the topic, looking on about and

fiber on to that internally maybe market? with what mentioned market might telecom something You to be of expand that work build-out interest. and you're doing Care

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civil. on back right sorry, could, I if more One Okay.

the I&M at to? digit wanting ramping be fact like of you year been the could ramping good that you this some think get mid-single you've given a got Just to seems run work back year. up, Do to exit you've up sort rate,

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shoring superintendent end the do more and it And up close So I levels. then that, a we've management pretty of the level bit think got by have some tad once we'll we I of year.

the see by you'll end up of but you'll see wrap to year. it I think it the think the begin us year, don't I is, following comment my So,

Got Yes. it.

Thank for Okay. questions. taking you the

Yes, sir.

to over have remarks. call the end session, and We for reached turn David closing the of question-and-answer the King I'll now

our Well, our a consistent, result and that for morning. clients, for main reliable our dependable to said investment provide community. this is thanks, joining us I've often employees everyone goal our and

that We that continue continue and to dedication plan goal. to

thank for Goodbye. morning. this you So us joining

This may this at for your concludes time. today’s conference lines participation. Thank and you your disconnect you