Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you talk about some of the factors keeping CapEx on the low end for the quarter? Was it weather or project timing or any other factors?
A: (Matthew J. Flannery - President, CEO & Director) No significant design to temper CapEx; it was about 17% of our guidance midpoint, aligning with a pre-COVID cadence due to a mostly repaired supply chain. No changes in growth CapEx plans for the year, with an increase factored in for the Yak acquisition.
Q: Given the intensified focus on power generation, can you provide direct color on the types of projects in your pipeline for 2024 compared to 2023?
A: (Matthew J. Flannery - President, CEO & Director) Power generation has been a focus since 2016, now over 10% of our business. Projects include traditional power, alternative power, and data centers, with growth expected beyond 2024 due to grid expansion needs.
Q: Can you update us on your M&A pipeline and the expected capital deployment towards M&A over the next 12-18 months?
A: (Matthew J. Flannery - President, CEO & Director) We don't set targets for M&A but maintain a robust pipeline, focusing on opportunities like Yak to add new products and grow them significantly within our network.
Q: What are the opportunities for Yak access given its shorter useful life and higher depreciation load?
A: (Matthew J. Flannery - President, CEO & Director) We expect strong returns from Yak, potentially improving by lengthening asset life. The business could double in size in five years, similar to our mobile storage expansion.
Q: Can you discuss the expansion of category class and the potential size of this opportunity?
A: (Matthew J. Flannery - President, CEO & Director) Any temporary project or plant item is a potential expansion opportunity. We aim to solve more customer problems by expanding our product lines in existing businesses.
Q: How did regional factors or weather impact the quarter, and how did this influence your guidance?
A: (Matthew J. Flannery - President, CEO & Director) No significant weather impacts noted. The diversification of our business by product and geography helped maintain stable performance, allowing us to reaffirm our guidance with the addition of Yak.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
