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BBCP Concrete Pumping

Participants
Cody Slach Investor Relations
Bruce Young Chief Executive Officer
Iain Humphries Chief Financial Officer
Andy Wittmann Baird
Tim Mulrooney William Blair
Brent Thielman D.A. Davidson
Steven Fisher UBS
Call transcript
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Operator

Good afternoon, everyone and thank you for participating in today’s conference call to discuss Concrete Pumping Holdings Financial Results for the Fourth Quarter and Fiscal Year ended October 31, 2021.

Joining us today are Concrete Pumping Holdings’ CEO, Bruce Young; CFO, Iain Humphries; and the company’s External Director of Investor Relations, Cody Slach.

Before we go further, I would like to turn the call over to Mr. Slach to read the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Cody Slach

Paul. Thanks, forward-looking remind you the our a will making to call, of operations, that business be give our to better certain everyone like course in this we and I’d outlook. regarding statements understanding of and subject results cause materially such risks differ that statements. could These statements numerous uncertainties are from to actual to

The which of For annual or XX-Q information, today’s statements, XX-K, SEC. revise reference Form including free any on Form whether we forward-looking disclaims report will and with flow, net we events these as publicly certain company On quarterly a otherwise. and filings see EBITDA, uncertainties, or update result financial measures, risks concerning and intention adjusted on information new Concrete Holdings’ or available non-GAAP also other obligation Pumping future debt call, cash any report the to useful believe today on non-GAAP reconciliations website. measures and information We about our I’d the information release investors. comparable will as in these provide presentation provide posted financial like website. the available available provided measures investor remind press the today’s for link to company’s via call as further also GAAP evening. be or replay company’s this everyone, this the for replay be release press in on A webcast the to well later will issued

company’s website. have we the investor an posted to Additionally, presentation updated

Holdings, Bruce turn to like Bruce? the call Concrete over Young. I’d Pumping CEO Now, the to of

Bruce Young

results higher to by quarter and compared the had driven across fourth year increased the our Cody $XX.X you, of everyone. XXXX am our volumes fiscal a XX% each The were revenue year we segments. quarter. to revenue Thank afternoon operating to that million increased from strong prior quarter I finish construction for to happy good strong report and

welcomed addition share Pioneer our M&A financial announced revenue strengthened in Pumping year, and year we and Holdings into $XXX.X reignited and the in grow the continue we and team to And fiscal million compelling our the profile as XXXX UK, acquisition. our experienced to multiple to X% acquisitions Pumping strong as fiscal in XXXX increased we Concrete family Concrete market completed successfully U.S. the as During the growth strategy. X, November on the

to from driven expected look stakeholder increased pumping perspective. synergies the our our seamlessly working and I complete regions. we With both recent are also outstanding This a improved customer X% are value. and segments, realize our am markets. deliver business contribution our in Texas individual to addition activities the integrate and our assets, progressing favorable infrastructure and well-positioned complementary team, the Georgia this colleagues their platform perseverance our activity addition forward and construction market fourth Integration Within strength and of U.S. high-quality an strong benefit to the and in and expansion. acquisition Eco-Pan and well relationships operational acquisitions their growth from to reporting to accelerating we dynamics together from customer-facing to efforts provides their by for residential quarter, in the for dedication end continued as service grateful in important

of business returning new high-growth continues the strategy business, and growth commercial our our our look remains data – an In increased successful growth recovery reopen. force variants. quarter projects. we been XX% forward COVID-XX Eco-Pan maintaining which The are tied country’s in expectations as more XX% pattern Concrete as to centers, executing centers markets nation but continued of to of such are sales COVID-XX. Eco-Pan, our Our prior have segment, to created environment strong in-person our revenue the both compared we seen and long-term across some part continues as the Management the by we of Waste but projects, fourth in for of impacts customers’ to the selling. delaying fulfillment UK progress pockets and year country concrete-intensive country work quarter continued increased dynamic the due revenue to uneven experience to the is softness has from of to double-digit In important

momentum see increased regions. to that our U.S. public secure In end to strong we mentioned we share rail to for treatment High wastewater recent a states project concrete-intensive continue rail Turning bright we and the we expect expect funding In a high-speed infrastructure key road plants calls win schools, UK, for that spot we and our our beyond continue residential still last to UK the the our commentary, the management U.S., projects, the have XXXX. to have market In and end our some market to in work. within tailored homes XXXX. fleet single-family is to market, earnings for and sustained our gains in demand market energy, see and team the hospitals. continues residential demand intentionally bridges, into to remain company for reason maximize ability including

capitalize expect to will due to the increase we federal the infrastructure state passage recent the Act. continue Investment to spending the Jobs level spending on at forward, and of increased Going and Infrastructure fully

from infrastructure remain state impact we on and expanded beyond, we level XXXX While although in estimate. tough magnitude assume fiscal positioned investment not infrastructure do capitalize XXXX well any the is to bill the year, our to currently and federal meaningful in

pandemic. recovers market the to as As from the earlier, end continues commercial I of recover our the impacts mentioned economy

We specialty it and begin are will actively these expected equipment require that XXXX. projects bidding is projects in

diesel we pass caused allow headwind severe to to Not as normal consumed also third as congestion higher Typically, most higher was cost were fuel statement side be cost year. to diesel our able passed short temporary to durations our project our shifting impacted fuel. customers, quicker did inflationary in more income the our our along traffic quickly, than of to move when and inflation which projects. more similar only margins. on Now we of business, rapid The more the quarter, navigated but pressures to pressure compared prior the the on notable

are environment, in current a as at and we cost However, inflationary workload off given lag pricing. efforts experiencing the sudden previously burn we agreed mitigation cost temporary sharp our

labor, to job remains in a the construction qualified market. given tightness to it current find workers, challenge the Moving

Despite quarter, have last generally our labor shared projects. our to fleet been difficult of can depending customers’ levers labor talent wage we on some higher, are. the levers, rates forced has fully construction agile offset. base to many across retain where workers remaining and helps environment to COVID, and be unique like sidelines As projects higher trades on impacting business due workers headwinds that was a to With labor a flexible these pull that combat the various

note As bids XXXX are industry, the implementing that construction these our the fiscal and labor U.S. and new is and our and pass-through actively important customers continued the working pricing it the remains constraints agreements. to backlog in pricing with we in strong. mechanisms year We UK continue in project inflation anticipate on

the fourth in this update We our of country. gains. resulted Now, Southern we UK, acquisition gateway in acquisitions strategic quarter, this In tuck-in of very solidifying Scotland. market to the we to acquisition serves believe part an California Texas discussed in the tuck-in the and in are quarter, share small expansion last acquisitions our acquisition important market the position made has during our pleased leading market Southern Hi-Tech an share on provide in with the a increasing

to We also tuck-in business opportunistic UK and on continue focus our organically through growing acquisitions.

and Atlanta, which I Dallas of our acquisition mentioned earlier, on Pioneer, also X, expanded presence we As November San in announced the Antonio.

value We are ability realize our of proven following taken deliver we same with confident stakeholder our benefits the transaction in approach creation and to previous have acquisitions. the this

have align people to our reliability. values with to M&A will opportunistic that of and will We and earnings teams be pursue continue safety, accretive core that our

look our Lastly, offer M&A, washout and on our of new forward opportunity service to concrete cross-sell customers to the cost-effective, our to environmentally-friendly compelling introducing topic solution. Eco-Pan a we acquisitions

year now, market out discuss call we to I updated strategy strong are depth. and I XXXX, Iain? our to a Iain XXXX execute the to will and our more return As forward in fiscal fiscal for later growth our to financial close in we to But long-term pass and outlook. strategic will position priorities. XXXX growth the year look provide discuss fourth quarter an off results

Iain Humphries

good Thanks, everyone. and afternoon Bruce

consolidated For X% million to fiscal increased By XXXX, ago year our same same revenue $XX.X the quarter the million quarter. in in under to million the increased U.S. $XX.X largely of compared XX% quarter. business, in revenue year Brundage-Bone $XX.X operating million fourth to $XX brand, Pumping compared segment, ago to Concrete the

of our XXXX U.S. brand, in COVID-XX continued Operations, in prior our year compared to the and our segment mainly region’s growth $XX in Gross year For was under being $XX.X heavily to the profit million million increased year-ago improved particularly cost $XX.X by Waste to in in a the $X.X This recovery organic reduction quarter. XX% compared to revenue Bruce operating impacted compared temporary discussed, to increased XX.X% congestion. Gross consumption growth fuel the in was result in the due to shutdowns. just million the double-digit the million Services UK Camfaud to to Revenue higher fourth UK million prices $XX.X rapid expectations This fourth X% the after quarter. Management quarter compared of increased Concrete million achieved margin $XX.X impact on inflationary in from quarter diesel same XX.X%. higher margin and traffic that our prior quarter. gross was primarily XX%

have same the million approximately margin consolidated to would quarter. inflationary the And compared headwind, QX year-ago been adjusted costs alone, XXXX. $X.X quarter For consistent largely with our fourth this increased diesel gross absent

pumping impactful results acquisitions important is While integrated base U.S. have our a gross heritage QX lower at less our note in business. than to our been that margin results, it recent to our

these prudently As In optimize we power. improve fleet areas purchasing performance to our continue we our of scale we and would costs, we supply monitor naturally manage integrate expect and as our growth other company expenses. to chain margin management additions,

expenses quarter. administrative compared in general $XX.X to to year-ago XX% same the QX in and Our $XX.X million improved million

million the expenses year related with ago stock-based compensation, and G&A $XX.X quarter. to the amortization Excluding same expenses were compared million G&A non-cash $XX.X in

by the or debt percentage loss net share. fourth quarters $X.X common to revenue, was of income a XX% million increase $X.X reduction as result share in in attributable expenses Net the diluted strategic compared in in million that or margin was expense EBITDA compared largely in in the temporary improvement a items XXXX. shareholders were of quarter the shareholders Adjusted driven cost to reduction same compared year-ago EBITDA was explained due fourth of common the comparable inflation XX.X% to margin per and earlier. EBITDA $X.XX quarter. million to per The diluted Adjusted revenue, $XX.X $X.XX to approximately fourth in fourth to interest both G&A January million increased was The lower of quarter As we a $XX.X the completed in the of refinancing attributable to quarter revenue. XXXX. the of XX.X% rapid

segment, EBITDA $X.X million to year-ago $XX.X Looking year-ago to the in was UK at EBITDA EBITDA million Concrete XX% the Pumping our In business in to by our quarter. $XX.X U.S. adjusted improved same adjusted million million in business, same adjusted compared compared $X.X quarter.

For million our to compared adjusted prior million to $X Waste year $X.X improved Concrete U.S. Management same business, EBITDA the quarter. in

availability from capacity our turning to to of $XXX.X Now This from XXXX, balance XX, which strength has had in organic pursue $XX.X leverage we of cash ABL and a of $XXX.X and and year significantly our When ratio like approximately October equates opportunities outstanding or and Also, growth. million had structure capital our the investment liquidity, the M&A improved enhances by XX, or million total which net on sheet ended compared liquidity, liquidity flexibility million. facility. current million greatly X.Xx. the debt-to-EBITDA ability sheet position we includes our balance approximately to debt fiscal $XXX $XX XXXX, accretive of October and debt to net approximately at million,

As have maturing debt lending near-term a our asset-based reminder, notes maturities, senior in we facility no XXXX. and with

take concrete perform, for customers approximately working Our have we ownership million since XXXX, business not of work continues fiscal in we requirements In and we minimal generated to daily generate flow. we invoice our We cash the the healthy capital we free flows. cash operating $XX free place. do

cash as acquisitions our opposed these guidance. generally we purchases fiscal year record combinations, purchases within we asset business excluding our our When cash Pumping flow the investing of As growth is statement the purchase and in free midpoint or equipment activities. price Concrete investments in achieved completed XXXX, to plant included acquisitions XXXX as flow

we growth XXXX, expect opportunities. cash significant to to forward performance flow the of accretive and continue to Looking provides that secure attractive the free strong capacity delivering

CapEx cash range between define year range free million; and replacement year less $XXX full adjusted our million revenues market. in $XX less critical expect which employees, EBITDA XXXX adjusted million and we and and our to as to across business to qualified very cash $XXX are to between $XXX million; and improved guidance, attract important the Improvements interest, into fleet EBITDA to net margin now $XX and range full Moving the something flow, is we between today’s performance million. drive million tight labor that $XXX retain

make back with our customers. $XX We of that into and the $XX fleet million dollars pumping to our time, continue amount of noted our and safe reliable us to so down help which to we improvements equipment, repair reduce concrete free we costs business. be to new should reinvest wins lower for a flow that project It capture repair cash all have million intend significant

Concrete approximately XXXX. the into $XX the redeployed Pumping million Pioneer in of we example, successful first of quarter acquisition For fiscal

earmarked We and the growth XXXX equipment. organic growth delivering to $XX the specifically approximately of $XX second benefit will half and in revenue beyond. of in that fiscal CapEx is equipment to million expected new XXXX, arrive have the towards earnings million organic and delivery also It begin

industry organic and for to equipment growth believe our top long-term are superior new growth the value talent to all growth units will profitable to us well dedicated committed with We us allow drive and driving stakeholders. position and attract

will remain Bruce. capital and to turn over and strategic to that, continue will operational back prudent We from allocation be call accelerate the standpoint when an growth. and With making I decisions, actively financial strong now

Bruce Young

quarter more drive continued the Iain. a growth to we’re UK organic fourth U.S. M&A. of the compared XXXX. well Thanks, to pleased as We and scale double-digit growth return normalized revenue state XXXX, to in to both took through as report to steps In strategic the

to recently to force We the our the double-digit value our our expanded communicate expected were business, customers. in Eco-Pan more service growth offering sales as also able returned our of Eco-Pan effectively to

continue delay great clear the and a is expect which the opportunistically in pressures want fuel management team reiterate acquisitions rapid Scotland. corresponded and I’ve are and I with as small Additionally, pipeline we tuck-in, our increased in recent discussed We actions areas in made prior to costs. endured to to Southern said have the impacted mitigate Hi-Tech, volatility evaluating. such costs. remain lines margins I of robust obtaining progress, to our and we in grow. rates to to of increasing raised California labor We’ve we near-term cost increases very Despite what M&A Earlier, and to other our as inflation, quarters, price we want disciplined acquisitions that approach timing timing inflationary remain due our that that our in sight of and to have the the Pioneer we inflationary

allocation We grow by single-family committed accretive to housing We to stakeholders for disciplined investments returning UK. business both will US to making capital growing share in strength of look acquisitions. Overall, as through thoughts gain high continue pursue superior our sheet We to our priorities. forward market to market these especially while to our the leading the projects. demand also value strategic To the position XXXX, we and remain – are our develop share to on residential projects, by to organically some continuing a our and and healthy balance in remains U.S. M&A area maintaining expect balancing business opportunities. remain we an momentum area share remain and

Jobs and This beneficial Infrastructure infrastructure, from any may in that for Act. we outside Investment continue is and in achieve passage the expect both UK. we of impact to the the the the U.S. As momentum of

to industrial continues commercial people there for and commercial, warehouses data heightened home to to continue and be services. work from demand retail as online heavy and centers on Moving rely

the We impacts economy expect will of from process commercial continue as increase to the recovers COVID-XX.

we anticipate to selling. as continue revenue that the ramp Eco-Pan’s team will in-person up Lastly, sales accelerate our

earlier expect on geographic build our fully next across organic comment and demand million capitalize well to to secular and growth to Paul? We and that, recovery the fundamentals construction the XXXX I’d attractive come. remain activity commercial investment, footprint. single-family call expanded state-level and growing to federal- million market With Iain’s operator the back positioned like now over housing year, strength infrastructure to years for turn we for support to trends $XX allocated market continued Looking beyond on $XX the of for to Q&A.

Operator

with Thank you, from Please Baird. [Operator proceed comes Wittmann your with Instructions] sir. Our first question Andy question.

Andy Wittmann

questions guidance guys. you’ll the I them down implied – a midpoint points about I if really calculated with right afternoon. have indulge basis you That’s start that of margins me. it here, I this few guess you if In specifically at the able that at my wanted in XX fast, Hi, diesel I math the away. XX.X%. couple the and just Good to year, guidance. over these cut about was your so actuals about to obviously impact Great. last correct. for had is quarters, weren’t offset

the the You have weather margins guess price that much shouldn’t as you had year, I being so able too. that headwind. now in of year, earlier be thought next are Iain, to would for I higher diesel, a the again some down maybe, with

or just are to able contracts to pricing would bake you’d your them. into shortened your of I think your Labor, these maybe keep either be even things, margins duration. flat improve all All

specific plan I are little and buckets So a bit against guidance you some in give cost going detail hoping you talk there? about was could what your just

Iain Humphries

Andy. Thanks, Yes.

that customers. expect that I still talk We about those pricing so prepared go are through inflationary you our the in continues now. will pressures And offset fuel us forward something as right we remarks with heard do we we working mean obviously, is XXXX. And early into

is with. obviously margins see of we diesel the those buckets, that will one several continue we but improve So

with say heard of the acquisitions, come some in that to they slightly lower at margins. You also

So we we I price. the improve side expect that as the headwinds, through offset. that that through right, is something outpace we’re on the on to do see making you’re we synergy margins work mean, the But adjustments to

Andy Wittmann

questions of Can your just – it. vis-à-vis build some you and trying the on maybe just guidance. Got on this Okay. understand acquisitions to to the

remarks coming on the as I in you’ve they coming acquiring guess, have you’ve acquisitions statements are CapEx financial not asset so line. been they purchases, said are the that you rather been – your So in acquisitions, the on prepared done in, that

million So cash just million asset to treating as be really to $XX $XX that’s the flow, purchases clear your free of is guidance here, acquisitions.

have So know that that Is right, we to of adjustment. kind Iain?

Iain Humphries

Yes.

So, if to you business million, the available at operational and to flow of take really $XX million be $XX they the their will growth. free deploy any looking cash

you as on take our business So CapEx it Pioneer, remarks, that say opposed the line. for heard the million show us will presumably would in through, would $XX up to line pull you a as combination I

million is investment $XX So replacement the the $XX after cash operational equipment. on free we million look to net at flow

So Pioneer, that like said, million going of as thought would I in of be to that for $XX $XX $XX investment. million million

Andy Wittmann

just confirm Yes, that. okay, to wanted

we that So Pioneer, $XX the I’ve what I guide. about CapEx. $XX didn’t tell that contemplated maintenance in one? should for you ‘XX growth million thinking got CapEx $XX be million, you’re Can million got us number a hear

Iain Humphries

Yes.

it’s flow, the So there. cash on free within

you CapEx you and So replacement really to net go from down EBITDA that the free interest. cash know, get flow if line, mean, I we as

would the interest $XX interest the really so million. bond, high-yield the $XX million between and full replacement look the be those you And for the the around would so year be about at two, difference on if expectation

Andy Wittmann

would on approximately even those be what the here give and are some of guidance acquisitions organic acquisition here, the but just terms knowing as ‘XX helpful expected to us last And regard? revenue sorry, what Pioneer in basis. versus revenue well question, contribute understand decipher in Last expected on and question acquisition Hi-Tech Okay. for as revenue? to an have otherwise we contributions help I’m trying can you just would that the

Iain Humphries

or Yes. $XX $XX million. It’s million about

Andy Wittmann

from both Okay. them? the Combined of

Iain Humphries

Yes.

Andy Wittmann

others. because Okay. in, I floor. others, be some do chime by bet the back might will I asked yield they but I I will have

and thank good have So, to Good a to night. you. you talk

Bruce Young

Andy. Thanks,

Iain Humphries

Andy. Thanks,

Operator

you. Thank

comes question Tim with William Blair. Please with proceed Mulrooney next Our question. from your

Tim Mulrooney

Bruce, Iain, good afternoon.

Bruce Young

Tim. Hi

Iain Humphries

Tim. Hi

Tim Mulrooney

help about just assuming. think that’s or guide your on that, some organic it the in of mean what So, the into Can what back are My excludes were I a first consensus is ahead your asset expecting. purchase growth I made was revenue talk gap. what kind is year fiscal explain of of purchase we half ‘XX what little ahead sense guidance Street the But that acquisitions of you for ‘XX, that those you than of higher baking for several bit that expecting, all was of asset also you fiscal currently acquisitions, otherwise? may

So, to clarify. I want

Iain Humphries

the the about growth business or organic across Yes, X% be will X%.

Tim Mulrooney

that meantime, equipment I got does the that equipment get second new in the need grow year, on you And will constraints? chain you half that to can’t enable the I you or know because in now which in in, line, Thanks. all coming constrained mean have due Alright. the supply faster top to mean that right you ‘XX. this are mentioned somewhat capacity-constrained you you

Bruce Young

we to we the invest equipment really much good gaining now. I time right for systems it’s going And Tim, are that anticipate we XXXX think us forward. for think actually have place We share, with being in better. with

opportunity for the growth of prepared are we So, in XXXX.

Tim Mulrooney

on more to consolidated margins fleet like Okay. how basis rates larger utilization the a enough, Pioneer, for Brundage-Bone? the your One how relative ones, what me, from Fair do you of EBITDA acquisitions, see those to and some Bruce. compare do

Bruce Young

and both than were what much Brundage-Bone cases, considerably in gets, their So, was their utilization margins less lower. typically

So, those, assets. additional with have we

then we pricing supplies. of our get to older asset pricing by our were leveraging want all of margin with on overhead improve that get we we of will Some and think theirs can really we and for dispose those the improvement to cash. better utilization power and But them using

Tim Mulrooney

Okay.

footprint when your plan That’s basic help margins So, to – fleet your part existing – existing you of lift your up. plan the to share then the here? part is acquire those of these, footprint on can you

Bruce Young

in. existing operations in cases, areas did the both In business all both we they have Yes.

so helpful And certainly that’s there.

Tim Mulrooney

Alright. my great. Okay. Thank That’s for you questions. taking

Bruce Young

Thanks Tim.

Iain Humphries

Tim. Thanks

Operator

Thank you.

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

Brent Thielman

Iain. Maybe as sort margin expect back you applied do an that stand the of neutralize today, Good pressure second move to you Thanks. see on fiscal as just there the afternoon Bruce through margins in some F ‘XX, embedded in guidance should here the or expectation the year? Hi. and is pressure we sustained half, and

Bruce Young

We getting been the was but the of accept do before in little to half in has a the what rate It we would as the fast what front expect And increases the customers get in year. of out steeper that. that in than we little as second out experienced with challenging, of we believe inflation. a have are market front do getting ever

Brent Thielman

you on adjustments more you the like up? Bruce, you here experiencing based today, have catch today, necessary or conditions there do And as you out are feel inflationary there are stand to what’s

Bruce Young

pressure. to more inflationary think actually going is there continued We be that

did are continues. we the that so if we and the of actually in we get agreements in it our out at way have that we work of so time us can front looking length for that our And place

Brent Thielman

with at latest maybe Okay. or the the sales, all, in-person And point. greatest a EBITDA seen back? of you business back and that have I traction so, over seen XX% Maybe given has taken days in step the slowed it sort at what just with have variant? your you getting has the XX then last some just am plus the confidence just curious, of on And to Eco-Pan, margins

Bruce Young

them continues the of to build in Eco-Pan momentum ability our value out we service. show front to have get Actually, the to stronger contractors on-site that do of

to see future. Eco-Pan year continue into the this remainder the strong And so of that will will I think through you be and

Brent Thielman

Okay. Thanks Bruce. Thank you.

Bruce Young

Brent. Thanks you. Thank

Operator

comes next question question. with Instructions] from Steven Fisher Please your with proceed [Operator Our UBS.

Steven Fisher

afternoon. Good Thanks.

you higher in organic I just that bit to guess surprised You X% mentioned for an assumption us within XXXX. it’s about to I X% a am that embedded than X%? that. pricing the And growth that of give earlier you not sense what little anticipate Can a you answer have X% a

Iain Humphries

the is Yes, seen the market. business. have slightly say than by pricing But I we our – well, is that legacy assumption in what assumption it’s would higher local pricing

on it in be market would we in range. would it in, whether those inflationary it see that But U.S. today. UK. to X% obviously, or offset the it’s So, cost depends the But to we environment that be that are the X% effort that

have what it seen little the So, a is in past. higher we than

Steven Fisher

organic that does volumes actually down? imply that then So, are your

Iain Humphries

not U.S. that part of mean that we are I No, target in the have would expect in or prices see. Eco-Pan the X% X% or the that expect volume, business sort year-over-year. within the pumping we our to UK, those see to to even organic But the would we seen of

Steven Fisher

And that should assumption kind of within any there of particular of sort sense second accelerating versus X% that X% volume, Okay. half, recovery be to Any course some assume half year. first over the of there? the

Iain Humphries

QX HX, But HX is what of we through be we business, the were maybe HX we same largely over to our slightly it’s of XX-XX. has whether HX, the shape it quarter-to-quarter XX-XX in historical seen years. be same. the and expect have flattened would or largely business shape QX the or as from before The It maybe

Steven Fisher

then, perhaps wondering are my am able And to to how work really new to your base. extent customers guess do balance your do And what much relates in on have capacity utilized to how you last a and take you from growth? labor be a I Okay. think And take capacity question on customers on perspective? your to I constraint is customer there at

Bruce Young

Steve. great a question, that’s Yes,

challenge do industry the our that’s the faces getting the think labor is I work. to biggest

work the people – our that into currently we we our as hard schedules on industry, customers drive have think can have up more more I attract taking great growth. they really backlog. to keeping They difficulty having in and new jobs to are get so with

Steven Fisher

lot. Okay. a Thanks

Bruce Young

Thank you.

Operator

you. Thank

your proceed question with Andy next question. Wittmann Please Baird. Our from with is

Andy Wittmann

if my taking contribution it the I follow-up. quarter? could you for think the for you give said caught it, but Thanks Great. don’t I FX to revenue

Iain Humphries

Yes, $XXX,XXX $XXX,XXX. or the quarter the contribution for FX was

Andy Wittmann

Okay.

that’s underlying growth. So, good very still

categories and Bruce, little infrastructure or bit full percent that’s be particular. plus maybe do relatively in – you talk specific then more possible. about residential, three those if book? three you was heard expect a change those you your business commercial that, just ‘XX? for could in this. segment categories thought perform for your I We minus now some And to on U.S. And detail, Okay. ‘XX your thoughts the little in the what year Can on bit just three maybe more how kind segments a in of fiscal

Bruce Young

Yes.

it of was from So, year-over-year the commercial picked little and almost XX% infrastructure. a bit was previous year, up and largely residential down by

We going expect that. half to forward that will first this stay that year of consistent in the fairly it

We projects, awful are it half second an for substantial that does really anything commercial market in we back. we the But to and come that’s And that some much of bidding go that too for commercial the that this thing are more when projects XXXX. that year, come really lot really of haven’t watched specialty we projects while more is equipment the are in this good budgeted hoping will expect back we of hope than need summer. on us see

Andy Wittmann

Got it.

Have Those Thanks a evening. all a good questions. my are Okay. lot guys.

Bruce Young

you. Thank

Operator

turn to our call I now back Mr. the to question-and-answer like concludes over This session. would

for Young closing remarks. any

Bruce Young

to like we today’s results forward speaking in would We we first our Paul. with and look when call, for you to XXXX listening to thank you, March. Thank everyone report quarter

Operator

today’s and this concludes conference. Ladies gentlemen,

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