crete Pumping (US:BBCP)2019-01-29 21:15Financial Data and Key Metrics Changes - For Q4 2018, adjusted revenue pro forma for acquisitions increased by 6% to $68.1 million, while adjusted EBITDA pro forma for acquisitions rose by 2% to $22.4 million [12][19] - For the full year 2018, adjusted revenue pro forma for acquisitions also increased by 6% to $251.3 million, with adjusted EBITDA pro forma for acquisitions up by 6% to $83.4 million [12][22] - Reported revenue for Q4 2018 increased by 13% to $67.4 million compared to $59.6 million in the year-ago quarter [16] - Net income improved to $1.4 million from $1.1 million in the year-ago quarter, with net income per diluted common share rising to $0.09 from $0.07 [19] Business Line Data and Key Metrics Changes - The U.S. concrete pumping segment (Brundage-Bone) saw reported revenue increase by 11% in Q4 and 9% for the full year [17] - The UK segment (Camfaud) reported a revenue increase of approximately 20% in Q4 and 38% for the full year [17] - Eco-Pan, the concrete waste management service, grew reported revenue by 15% in Q4 and 21% for the full year [18] Market Data and Key Metrics Changes - The company holds approximately 10% market share in the U.S. and about 34% in the UK [10] - The company has a diversified footprint with 80 locations across 22 states in the U.S. and 28 locations in the UK [10] Company Strategy and Development Direction - The company aims to expand Eco-Pan, which has only 3% to 4% market penetration in the U.S., and plans to grow its presence in the UK [25] - The company has completed over 45 acquisitions to build a national scale in the U.S. and UK markets, enhancing profitability through synergies [27] - The company is positioned to benefit from increased government infrastructure spending in both the U.S. and UK, particularly with large projects like the UK high-speed rail [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends and performance for fiscal 2019, despite some projects being pushed into the next fiscal year due to adverse weather [15][23] - The company expects revenue in the range of $270 million to $275 million and EBITDA around $95 million for 2019 [46] Other Important Information - The company ended fiscal year 2018 with $8.6 million in cash and $237.1 million of debt, with total debt at the closing of the business combination reaching $368 million [22] - The company generates significant free cash flows and has minimal working capital requirements, allowing for comfort with current debt levels [23] Q&A Session Summary Question: Can you bracket the sales that might have been pushed from Q4 into Q1? - Management indicated that approximately $1.5 million in revenue was pushed into fiscal 2019, but none of the projects were canceled [35] Question: Can you break down the price and volume mix of growth year-over-year for U.S. and UK pumping? - Price increases were about 2.5% in the U.S. and 4% in the UK, with growth being roughly 50/50 between price and volume [37] Question: What are the planned greenfield initiatives for Eco-Pan and pumping business in 2019? - The company is expanding into Charlotte, North Carolina, and moving into six new locations for Eco-Pan, leveraging existing Brundage-Bone locations [39] Question: How long does it take for new markets to reach mature revenue levels? - It typically takes one to two months to become profitable, with full utilization of the first truck expected within six months to a year [41] Question: What is the timing for high-speed rail awards in the UK? - Management expects to see some revenue from the high-speed rail project throughout the year, with significant revenue anticipated towards the end of the year [43] Question: Can you provide an update on the 2019 outlook regarding sales and EBITDA? - Management confirmed comfort with the revenue and EBITDA outlook for 2019, maintaining previous estimates [46]