Granite Construction Inc (GVA) 2023 Q2 法說會逐字稿

Good morning. My name is Sarah, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Granite Construction Investor Relations Second Quarter 2023 Conference Call. This call is being recorded.

早上好。我叫莎拉，今天我將擔任你們的會議主持人。此時此刻，我謹歡迎大家參加 Granite Construction 投資者關係 2023 年第二季度電話會議。此通話正在錄音。

(Operator Instructions)

（操作員說明）

It is now my pleasure to turn the floor over to your host, Granite Construction Inc. Vice President of Investor Relations Mike Barker.

現在我很高興將發言權交給東道主 Granite Construction Inc. 投資者關係副總裁 Mike Barker。

Good morning, and thank you for joining us. I'm pleased to be here today with President and Chief Executive Officer, Kyle Larkin, and Executive Vice President and Chief Financial Officer, Lisa Curtis.

早上好，感謝您加入我們。我很高興今天能與總裁兼首席執行官凱爾·拉金 (Kyle Larkin) 和執行副總裁兼首席財務官麗莎·柯蒂斯 (Lisa Curtis) 一起出席。

Please note that today's earnings presentation will be available on the Events and Presentations page of our Investor Relations website. We begin today with a brief discussion regarding forward-looking statements and non-GAAP measures. Some of the discussion today may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

請注意，今天的收益演示將在我們投資者關係網站的活動和演示頁面上提供。今天我們首先簡要討論前瞻性陳述和非公認會計準則措施。今天的一些討論可能包括 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。

These forward-looking statements are estimates reflecting the current expectations and best judgment of senior management regarding future events, occurrences, opportunities, targets, growth, demand, strategic plans, circumstances, activities, performance, shareholder value, outcomes, outlook, guidance, objectives, committed and awarded projects or CAP and results. Actual results could differ materially from the statements made today.

這些前瞻性陳述是反映高級管理層對未來事件、事件、機會、目標、增長、需求、戰略計劃、情況、活動、業績、股東價值、成果、前景、指導、目標的當前預期和最佳判斷的估計、承諾和授予的項目或 CAP 和結果。實際結果可能與今天的聲明存在重大差異。

Please refer to Granite's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these forward-looking statements. The company assumes no obligation to update forward-looking statements, except as required by law. Certain non-GAAP measures may be discussed during today's call and from time to time by the company's executives. These include, but are not limited to, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted earnings per share. The required disclosures regarding our non-GAAP measures are included as part of our earnings press releases and in company presentations, which are available on our website, graniteconstruction.com under Investor Relations.

請參閱 Granite 最近的 10-K 和 10-Q 文件，了解可能影響這些前瞻性陳述的風險因素的更完整描述。除法律要求外，公司不承擔更新前瞻性陳述的義務。公司高管可能會在今天的電話會議上不時討論某些非公認會計原則措施。這些包括但不限於調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的淨利潤和調整後的每股收益。有關我們的非公認會計原則措施的必要披露已包含在我們的收益新聞稿和公司演示文稿中，這些信息可在我們的網站 Graniteconstruction.com 的投資者關係下查看。

Now I'd like to turn the call over to Kyle Larkin.

現在我想把電話轉給凱爾·拉金 (Kyle Larkin)。

Good morning, and welcome to our Second Quarter Conference Call. I'll start with a quick recap of some significant accomplishments in an eventful second quarter. At the beginning of Q2, we closed on the purchase of Coast Mountain Resources, or CMR, a quarry and processing facility that served as a supplier for our Pacific Northwest region. Our Materials business is integral to our home market strategy. As discussed in previous calls, we performed best in markets, featuring a combination of an aggregate and asphalt business with a vertically integrated construction business.

早上好，歡迎參加我們的第二季度電話會議。首先，我將快速回顧一下多事之秋的第二季度取得的一些重大成就。第二季度初，我們完成了對 Coast Mountain Resources（CMR）的收購，這是一家採石場和加工設施，是我們太平洋西北地區的供應商。我們的材料業務是我們國內市場戰略不可或缺的一部分。正如之前的電話會議中所討論的，我們在市場上表現最好，將集料和瀝青業務與垂直整合的建築業務相結合。

We believe the CMR acquisition provides our Pacific Northwest region with a competitive advantage. This acquisition as well as the Q1 purchase of the Brunswick Canyon quarry in Northern Nevada reflects our commitment to invest in and grow our materials business. In addition to these acquisitions, we also continue to invest in greenfield reserves, plant automation and other efficiency projects. We are seeing the results of our investment in the materials business and look forward to sharing more as we continue to execute our plan.

我們相信，CMR 收購將為我們的太平洋西北地區提供競爭優勢。此次收購以及第一季度對內華達州北部 Brunswick Canyon 採石場的收購反映了我們對投資和發展材料業務的承諾。除了這些收購之外，我們還繼續投資綠地儲備、工廠自動化和其他效率項目。我們正在看到材料業務投資的成果，並期待在繼續執行我們的計劃時分享更多。

We also completed the refinancing of our convertible bonds in May. This refinancing resulted in a $51 million noncash charge that is adjusted in our non-GAAP net income and earnings per share. The new convertible bonds supplement our credit facility and provide Granite with a strong capital structure that bolsters our liquidity position. Our debt structure provides us with both stability and access to funds as opportunities arise.

我們還於五月份完成了可轉換債券的再融資。此次再融資產生了 5100 萬美元的非現金費用，該費用在我們的非 GAAP 淨利潤和每股收益中進行了調整。新的可轉換債券補充了我們的信貸安排，並為 Granite 提供了強大的資本結構，增強了我們的流動性狀況。我們的債務結構為我們提供了穩定性，並在機會出現時獲得資金。

Turning to our response to a slow Q1, but we were happy in Q2 to finally stop talking about atmospheric rivers out West, historically wet Q1 weather had a lingering headwind as several of our Western businesses dealt with delays caused by the historic snowpack and associated runoff. Despite these impacts, I'm encouraged by our team's second quarter performance and ability to overcome the slow start of the year.

談到我們對第一季度緩慢的反應，但我們很高興在第二季度終於不再談論西部的大氣河流，歷史上潮濕的第一季度天氣一直存在揮之不去的逆風，因為我們的幾家西部企業正在處理歷史性積雪和相關徑流造成的延誤。儘管存在這些影響，我對我們團隊第二季度的表現以及克服年初緩慢的能力感到鼓舞。

Now let's dive into our Construction segment. I'm excited to report the total cap increased $334 million from the first quarter, and is up over $1.2 billion year-over-year to $5.4 billion. That is an exceptional result for the quarter and a testament to pursuit teams across the company. I'm pleased by both the number of wins in the quarter and the opportunities that we see on the horizon.

現在讓我們深入探討我們的建築部分。我很高興地向您報告，總上限比第一季度增加了 3.34 億美元，同比增長超過 12 億美元，達到 54 億美元。這是本季度的出色業績，也是整個公司團隊追求的證明。我對本季度的勝利數量和我們即將看到的機會感到高興。

We are winning our share of high-quality public and private work. This should translate to revenue growth in 2023, but even greater impacts to be recognized in 2024 and 2025. I believe current market conditions should allow us to continue building strong and quality capital through the remainder of 2023.

我們正在贏得高質量公共和私人工作的份額。這應該會轉化為 2023 年的收入增長，但在 2024 年和 2025 年會產生更大的影響。我相信，當前的市場狀況應該允許我們在 2023 年剩餘時間內繼續建立強大和優質的資本。

Looking at our operating groups and starting with the California Group, it was another stellar quarter for our pursuit teams across the state. The group ended Q2 with another record cap of $2.3 billion, an increase of $432 million or 23% sequentially and $716 million or 44% year-over-year. There have been some concerns around California's 2023 to 2024 budget deficit. However, the finalized budget package keeps infrastructure investment intact and, in fact, is up 5% from the previous year.

看看我們的運營團隊，從加州集團開始，對於我們全州的追踪團隊來說，這是另一個出色的季度。該集團第二季度末的上限再創新高，達到 23 億美元，比上一季度增加 4.32 億美元，增長 23%，比去年同期增長 7.16 億美元，增長 44%。人們對加州 2023 年至 2024 年的預算赤字存在一些擔憂。然而，最終確定的預算方案保持了基礎設施投資不變，而且實際上比上一年增長了 5%。

The state recognizes the need for infrastructure investment and has protected it in the latest budget. In addition, the budget authorizes Caltrans, the State Department of Transportation to pilot the Progressive Design Build procurement method. This is an example of an alternative procurement model that we prefer.

國家認識到基礎設施投資的必要性，並在最新的預算中對其進行了保護。此外，預算還授權加州交通部（Caltrans）試行漸進式設計建造採購方法。這是我們喜歡的替代採購模式的一個例子。

Like the construction manager, general contractor procurement method, Progressive Design Build is the best value method that generally provides more successful projects by allowing stakeholders to collaborate throughout the design, preconstruction and construction process.

與施工經理、總承包商採購方法一樣，漸進式設計建造是最有價值的方法，通常通過允許利益相關者在整個設計、預施工和施工過程中進行協作來提供更成功的項目。

Through the first 6 months of the 2023 calendar year, Caltrans awarded $3.4 billion of work, including both traditional bid build and construction manager, general contractor procurement types. This total was the highest amount in terms of number of projects and dollars awarded in the last 5 years. Over the past year, the dynamics of the state's funding have continued to improve, aided by the federal infrastructure bill and our California Group has capitalized on the numerous opportunities available.

在 2023 日曆年的前 6 個月，加州交通局授予了 34 億美元的工程，包括傳統的投標建設和施工經理、總承包商採購類型。從項目數量和資助金額來看，這一總額是過去 5 年來的最高金額。過去一年，在聯邦基礎設施法案的幫助下，該州的資金動態持續改善，我們的加州集團充分利用了眾多可用機會。

A quick comment on the California emergency work that we discussed in the first quarter. As a reminder, this work was comprised of approximately $100 million of not-to-exceed contracts. Year-to-date through the second quarter, we recognized $43 million in revenue for emergency work. We don't anticipate significantly more revenue from these contracts. While the California Group has the highest cap balance by group, the Mountain Group is our largest group by revenue, both in 2022 and through the first half of this year.

對我們在第一季度討論的加州緊急工作的快速評論。提醒一下，這項工作由價值約 1 億美元的不超額合同組成。年初至今，截至第二季度，我們確認緊急工作收入為 4300 萬美元。我們預計這些合同的收入不會大幅增加。雖然加州集團的上限餘額最高，但山區集團是我們 2022 年和今年上半年收入最大的集團。

At the end of the second quarter, CAP in the Mountain Group stood at $1.5 billion, an increase of $52 million or 4% sequentially and an increase of $428 million or 40% year-over-year. The CAP growth is primarily driven by the Alaska, Nevada and Utah regions. The Mountain Group is the most seasonal group within Granite as several markets are exposed to more intense winter weather and have shorter construction seasons. With the higher levels of CAP in place at the start of this year, the group ramped up quickly as soon as weather allowed and expect to have a very busy remainder of the year.

截至第二季度末，Mountain Group 的 CAP 為 15 億美元，環比增加 5,200 萬美元，增幅 4%，同比增加 4.28 億美元，增幅 40%。 CAP 增長主要由阿拉斯加州、內華達州和猶他州地區推動。山地組是花崗岩中季節性最強的組，因為一些市場面臨更嚴酷的冬季天氣並且施工季節更短。隨著今年年初 CAP 水平的提高，一旦天氣允許，該集團就會迅速增加規模，預計今年剩餘時間將非常繁忙。

Finally, in the Central Group, CAP decreased in the quarter by $151 million sequentially, while remaining up $81 million year-over-year. While there was a CAP decrease in Q2, the Central Group was the lowest bidder on several projects, which we reflected in third quarter CAP, including a $200 million tunnel project in Ohio. The Central Group continues to pursue quality work and is building up its derisked CAP portfolio. We expect the group to increase its CAP in the third quarter with the tunnel division in Illinois and Texas regions leading the way.

最後，在中央集團，CAP 本季度環比減少 1.51 億美元，但同比仍增長 8100 萬美元。雖然第二季度 CAP 有所下降，但 Central Group 是多個項目的最低出價者，我們在第三季度的 CAP 中反映了這一點，其中包括俄亥俄州 2 億美元的隧道項目。 Central Group 繼續追求高質量的工作，並正在建立其低風險的 CAP 組合。我們預計該集團將在第三季度提高其 CAP，其中伊利諾伊州和德克薩斯州地區的隧道部門將處於領先地位。

While the Central Group has substantially derisked its current CAP, I am disappointed to report that the Construction segment was again impacted by the I-64 High-Rise Bridge Project. While this project continues to move towards final completion, which is now scheduled for early in the fourth quarter, the project suffered cost increases. This resulted in a $21 million impact to gross profit in the quarter with a net impact to Granite of $10 million after noncontrolling interest.

雖然 Central Group 已大幅降低其當前 CAP 的風險，但我很失望地報告，建築部門再次受到 I-64 高層橋樑項目的影響。雖然該項目繼續朝著最終完工的方向邁進，目前計劃於第四季度初完成，但該項目的成本卻增加了。這對本季度毛利潤造成 2100 萬美元的影響，扣除非控股權益後對 Granite 的淨影響為 1000 萬美元。

Winding down these types of risky projects has been a long journey. We remain focused on completing the project as soon as possible. The challenges we have faced on the project are a stark reminder of why we intentionally derisked our portfolio away from these types of large, complex design-build projects where project risks are shifted to the design builder.

結束這些類型的風險項目是一個漫長的過程。我們仍然專注於盡快完成該項目。我們在該項目中面臨的挑戰清楚地提醒我們，為什麼我們故意將我們的產品組合風險從這些類型的大型、複雜的設計建造項目中剔除，這些項目的風險轉移給了設計建造者。

Our experience with these types of projects, which often require 5 or more years to complete, and we are working outside our home markets has not proved successful. When we are evaluating larger projects, we have emphasized best value procurement delivery methods, such as CMGC and Best Value projects, we are better positioned to address all risks as we work collaboratively with the client to mitigate risk for the project, the client and for Granite.

我們在此類項目方面的經驗通常需要 5 年或更長的時間才能完成，而且我們在本土市場之外開展工作，但事實證明這些項目並不成功。當我們評估較大的項目時，我們強調最佳價值採購交付方法，例如 CMGC 和最佳價值項目，當我們與客戶合作時，我們能夠更好地應對所有風險，以減輕項目、客戶和客戶的風險。花崗岩。

Although some Best Value projects have high total contract values, they are often separated into smaller work packages, which are then reviewed through multiple project workshops. This process is a win for the contractor and the owner. Projects are generally completed quicker and with fewer claims. We have constructed more than 60 Best Value projects, and we are very confident in our risk assessment on these types of projects.

儘管一些最佳價值項目的合同總價值很高，但它們通常被分成較小的工作包，然後通過多個項目研討會進行審查。這個過程對於承包商和業主來說是雙贏的。項目通常完成得更快並且索賠更少。我們已經建造了 60 多個最佳價值項目，我們對此類項目的風險評估非常有信心。

Overall, assuming the weather cooperates in the last 6 months of 2023, I expect the third quarter and second half of the year to be very busy with revenue exceeding the prior year. I also believe we have numerous opportunities to continue to build CAP in every group, setting the stage for strong growth in 2024.

總體而言，假設 2023 年最後 6 個月天氣良好，我預計今年第三季度和下半年將非常繁忙，收入將超過去年。我還相信，我們有很多機會繼續在每個群體中建立 CAP，為 2024 年的強勁增長奠定基礎。

Moving to the Materials segment. I'm excited about the performance in the second quarter and the momentum we have going into the third quarter. In Q1, inclement weather slowed construction and drove significant decreases in volumes. In Q2, our teams got to work and started to make up ground. Aggregate sales volumes increased 9% year-over-year in the quarter, while asphalt volumes were flat.

轉向材料領域。我對第二季度的表現以及我們進入第三季度的勢頭感到興奮。第一季度，惡劣天氣減緩了施工速度並導致產量大幅下降。在第二季度，我們的團隊開始工作並開始收復失地。本季度總銷量同比增長 9%，而瀝青銷量持平。

The Materials business has performed well. increasing prices, both in aggregates and asphalt resulting in improved revenues and margins. We are investing more in our materials business to maximize production efficiency through multiple automation projects, greenfield reserves standardization, implementation of best practices. These initiatives are paying off, and I believe we will see further benefits as we drive towards our 2024 gross profit margin targets of 15% to 17%.

材料業務表現良好。骨料和瀝青價格上漲，從而提高收入和利潤。我們正在加大對材料業務的投資，通過多個自動化項目、綠地儲備標準化、實施最佳實踐來最大限度地提高生產效率。這些舉措正在取得成效，我相信，隨著我們努力實現 2024 年 15% 至 17% 的毛利率目標，我們將看到更多好處。

Now I'll turn it over to Lisa to review our financial performance for the quarter.

現在我將把它交給麗莎來審查我們本季度的財務業績。

Thank you, Kyle. In the second quarter, consolidated revenue increased $50 million to $899 million, while gross profit increased $5 million to $103 million. In the Construction segment, revenue increased $36 million year-over-year to $749 million. The revenue increase was led by the California and Mountain Groups, which were up 18% and 4% year-over-year, respectively. Their revenue increases were partially offset by a 5% year-over-year decline in the Central Group.

謝謝你，凱爾。第二季度，綜合收入增加 5000 萬美元，達到 8.99 億美元，毛利潤增加 500 萬美元，達到 1.03 億美元。在建築領域，收入同比增長 3600 萬美元，達到 7.49 億美元。收入增長主要由加州集團和山區集團帶動，分別同比增長 18% 和 4%。他們的收入增長被中央集團 5% 的同比下降部分抵消。

The California and Mountain Groups entered the quarter with higher levels of CAP than the same period in the prior year and they built on that CAP during the quarter. The groups have done a great job of making up for the slow start to the year, and I believe they are likely to continue to outpace 2022 in the second half of the year.

加州和山區集團進入本季度時的 CAP 水平高於上一年同期，並且他們在本季度以 CAP 為基礎。這些集團在彌補今年開局緩慢方面做得很好，我相信下半年他們的表現可能會繼續超過 2022 年。

The Central Group has done an excellent job of transforming and building CAP within its home markets over the last year, and we expect to see revenue increase as these projects continue to ramp up during 2023. Construction segment gross profit decreased $1 million year-over-year to $79 million with a gross profit margin of 11%.

去年，Central Group 在國內市場的轉型和建設 CAP 方面做得非常出色，我們預計隨著這些項目在 2023 年繼續增加，收入將會增加。建築業務毛利潤同比下降 100 萬美元年增至 7,900 萬美元，毛利率為 11%。

In the second quarter, Construction gross profit was adversely impacted by a write-down on the I-64 High-Rise Bridge Project. The impact to gross profit in the second quarter was $21 million, and the impact after noncontrolling interest was $10 million. For the 6 months ended June 30, 2023, the I-64 impact to gross profit was $32 million, and the impact after noncontrolling interest was $16 million. The impact was primarily due to scheduled delays driven by weather, unexpected site conditions and utility conflicts encountered, as we work to close the project out.

第二季度，建築業毛利潤受到 I-64 高層橋樑項目減記的不利影響。對第二季度毛利潤的影響為 2100 萬美元，扣除非控股權益後的影響為 1000 萬美元。截至 2023 年 6 月 30 日的 6 個月，I-64 對毛利潤的影響為 3,200 萬美元，扣除非控股權益後的影響為 1,600 萬美元。影響主要是由於天氣、意外的現場條件以及在我們努力關閉項目時遇到的公用設施衝突導致的預定延誤。

In the Materials segment, revenue increased $13 million year-over-year to $149 million, with gross profit increasing $7 million to $24 million or a gross profit margin of 16%. The improvement in gross profit margin was primarily due to sales price increases in both asphalt and aggregates and increased aggregate sales volume over the second quarter of 2022. Oil and energy cost increases in the first half of 2022 had a significant negative impact to materials margins.

在材料部門，收入同比增長 1300 萬美元，達到 1.49 億美元，毛利潤增長 700 萬美元，達到 2400 萬美元，毛利率為 16%。毛利率的改善主要是由於瀝青和骨料銷售價格的上漲以及2022年第二季度總銷量的增加。2022年上半年石油和能源成本的增加對材料利潤率產生了顯著的負面影響。

In the second quarter of 2023, these costs have moderated and margins are more normalized. I expect that we will continue to see improvement in Materials segment margins as our investments in this business take effect. Weather permitting, we expect to see continued strong performance by our Materials business in the second half of the year.

2023 年第二季度，這些成本有所下降，利潤率更加正常化。我預計，隨著我們對該業務的投資生效，我們將繼續看到材料部門的利潤率有所改善。如果天氣允許，我們預計下半年我們的材料業務將繼續表現強勁。

At the end of the second quarter, our cash and marketable securities totaled $251 million. Historically, our cash decreases in the first half of the year as the construction season ramps up, and we generate cash in the second half of the year. The weather-impacted first quarter further exacerbated this pattern with projects and plans having a slower start to the year. This, in turn, drove higher cash usage and receivable balances.

截至第二季度末，我們的現金和有價證券總額為 2.51 億美元。從歷史上看，隨著施工季節的增加，我們的現金在上半年會減少，而在下半年我們會產生現金。受天氣影響的第一季度進一步加劇了這種模式，項目和計劃今年開局較慢。這反過來又推動了現金使用量和應收賬款餘額的增加。

I expect that we will see a reversal of this trend in the third quarter in line with our traditional seasonal cash flow pattern. In May, we issued $374 million of 3.75% convertible notes. The primary use of the proceeds was to retire $199 million of our outstanding 2.75% convertible notes. In a challenging debt market, I am pleased that we were able to complete this transaction that should provide years of capital structure stability at a reasonable net cost to Granite.

我預計我們將在第三季度看到這一趨勢的逆轉，這與我們傳統的季節性現金流模式一致。 5 月份，我們發行了 3.74 億美元、利率為 3.75% 的可轉換票據。所得款項的主要用途是償還我們未償還的 1.99 億美元 2.75% 可轉換票據。在充滿挑戰的債務市場中，我很高興我們能夠完成這項交易，這將為 Granite 以合理的淨成本提供多年的資本結構穩定性。

We also put measures in place through the capped call transactions, entered into simultaneously, with the issuance of the bonds to protect our shareholders from any dilution from the new convertible bonds until our share price is above $79.83. We believe it is a great result for Granite and all of our stakeholders. On to our guidance. We are refining our 2023 guidance for revenue and adjusted EBITDA margin.

我們還通過與債券發行同時進行的上限認購交易採取措施，以保護我們的股東免受新可轉換債券的稀釋，直到我們的股價高於 79.83 美元。我們相信這對 Granite 和我們所有的利益相關者來說都是一個偉大的結果。接受我們的指導。我們正在完善 2023 年收入和調整後 EBITDA 利潤率的指導。

As a reminder, last quarter, we talked about our expectations that the $100 million and not to exceed emergency work contracts, which were awarded, will allow us to achieve our revenue guidance as we worked to overcome wet weather delays. Today, we do not expect our clients will utilize all available funding and the emergency work should total approximately $50 million.

提醒一下，上個季度，我們談到了我們的預期，即所授予的 1 億美元且不超過緊急工作合同將使我們能夠在努力克服潮濕天氣延誤的同時實現我們的收入指導。今天，我們預計我們的客戶不會動用所有可用資金，緊急工作總額應約為 5,000 萬美元。

Additionally, a few projects experienced delayed starts in the California and Central groups and have pushed to the right. While we are pleased with the recovery in the second quarter to gain ground following the weather-impacted first quarter, we are revising our guidance for revenue to $3.35 billion to $3.45 billion.

此外，加州和中部地區的一些項目延遲啟動，並已向右推。雖然我們對受天氣影響的第一季度之後第二季度的複蘇感到高興，但我們正在將收入指引修改為 33.5 億美元至 34.5 億美元。

We are confident that our record CAP has us positioned for predictable and sustainable growth. We are also narrowing our adjusted EBITDA margin range to 7.5% to 8.5%. The new range incorporates the losses already incurred on the I-64 project in the first half of the year. Our view on 2024 is unchanged. Our CAP has grown substantially over the last year and is of higher quality with higher margins that we believe support both our revenue growth and our profitability expectations.

我們相信，我們創紀錄的 CAP 使我們能夠實現可預測和可持續的增長。我們還將調整後的 EBITDA 利潤率範圍縮小至 7.5% 至 8.5%。新的範圍包含了今年上半年 I-64 項目已經發生的損失。我們對 2024 年的看法沒有變化。去年，我們的 CAP 大幅增長，質量更高，利潤率更高，我們相信這支持了我們的收入增長和盈利預期。

Now I'll turn it back over to Kyle.

現在我會把它轉回給凱爾。

Thanks, Lisa. I'll close with the following points. Through the second quarter, we are winning work that should allow us to meet our expectations for 2024 and beyond. The second quarter represents a second consecutive record CAP for the company, with the California Group leading the way. I am really pleased with the significant amount of high-quality CAP that we have in front of us.

謝謝，麗莎。我將以以下幾點作為結束語。在第二季度，我們正在贏得工作，這將使我們能夠滿足 2024 年及以後的期望。第二季度代表該公司連續第二個創紀錄的 CAP，其中加州集團處於領先地位。我對我們面前的大量高質量 CAP 感到非常滿意。

Even with the CAP growth over the last year, I believe the opportunities that we see in front of us support further growth in 2023. When we started talking about IIJA, we said that we thought it would start slowly and ramp up over a number of years. We are seeing that play out in our markets. The opportunities afforded by the IIJA continue to grow as agencies work through the process of bringing more projects to bid.

即使去年 CAP 有所增長，我相信我們面前的機會也支持 2023 年的進一步增長。當我們開始談論 IIJA 時，我們表示我們認為它會緩慢啟動，並在一定時間內逐步增加。年。我們正在看到這種情況在我們的市場上發生。隨著各機構開展更多項目投標過程，IIJA 提供的機會不斷增加。

While the results of our Construction segment were negatively impacted by our efforts to close out the I-64 project, we remain confident that our direction is clear. Our momentum is building and our plan is working. We're driving towards our 2024 targets.

雖然我們建築部門的業績受到我們完成 I-64 項目的努力的負面影響，但我們仍然相信我們的方向是明確的。我們的勢頭正在增強，我們的計劃正在發揮作用。我們正在努力實現 2024 年的目標。

Lastly, the Materials segment is performing very well and the market remains strong. We will continue to invest in the business, and I expect to see further gains, both on the top and bottom lines.

最後，材料領域表現良好，市場依然強勁。我們將繼續投資該業務，我預計收入和利潤都會進一步增長。

Operator, I will now turn it back to you for questions.

接線員，我現在將其轉回給您提問。

(Operator Instructions)

（操作員說明）

First question comes from Brent Thielman with D.A. Davidson.

第一個問題來自 D.A. 的 Brent Thielman。戴維森。

Kyle or Lisa, just I guess wanted to pick on the revenue outlook reduction. I mean your CAP is up year-on-year a lot and sequentially as well, some concerns coming into me just is this a shift in terms of the demand environment. So if you maybe -- if you could just clarify that, why the revenue outlook came down. It sounds like maybe some delays in projects, but any color there, I think, would be helpful for people?

凱爾或麗莎，我想只是想選擇收入前景的下調。我的意思是，你們的 CAP 逐年上升了很多，而且連續上升，我的一些擔憂只是需求環境方面的轉變。因此，如果您能澄清這一點，為什麼收入前景會下降。聽起來項目可能會有些延遲，但我認為任何顏色都會對人們有幫助嗎？

Yes. So yes, the real -- probably a couple of things that maybe I'll point to. First off, as we anticipated around $100 million of emergency work to be built really, really filling in that void I mentioned in the last quarter between the wet weather and the project starts. Ultimately, those contracts ended up being close to around $50 million, they were not to exceed contracts and the owners decided not to complete their entire budget allotment.

是的。所以，是的，真正的——可能我會指出一些事情。首先，我們預計大約 1 億美元的緊急工程將真正填補我在上個季度提到的潮濕天氣和項目啟動之間的空白。最終，這些合同最終價值接近 5000 萬美元左右，它們不會超出合同範圍，業主也決定不完成全部預算撥款。

And some of that $50 million to come out later and other projects where we could see at some point later in the year next year. So -- but we're expecting that to only be $50 million to $100 million. The balance of it is really just project restarts and starts, certainly impacted by some of the weather that we had and the amount of snowpack we had on certain parts of our business that impacted projects getting ramped back up in the year as well as runoff and then just some project starts themselves and parts of our business. I would -- if you put $50 million on the emergency work, you could put the other $50 million and split it between California and the Central Groups for project start-ups.

其中一些 5000 萬美元將在稍後推出，而其他項目我們可能會在明年晚些時候的某個時候看到。所以——但我們預計這個數字僅為 5000 萬至 1 億美元。它的平衡實際上只是項目的重新啟動和啟動，當然受到我們的一些天氣和我們業務某些部分的積雪量的影響，這些影響了項目在今年的恢復以及徑流和然後一些項目本身和我們業務的一部分就開始了。我會——如果你投入 5000 萬美元用於緊急工作，你可以投入另外 5000 萬美元，並將其分配給加州和中央集團用於項目啟動。

Got it. Okay. I guess my follow-up, I mean, it looks like you were something over 13% gross margin in the Construction segment, if I take out the losses on I-64. Is that better or sort of worse than your initial plan for this year? Maybe just curious to how you feel the development of kind of the core construction business is coming along as you've implemented a lot of new initiatives, just focused on higher profitability here?

知道了。好的。我想我的後續行動，我的意思是，如果我扣除 I-64 上的損失，看起來你們在建築領域的毛利率超過 13%。這比你今年最初的計劃更好還是更差？也許只是想知道，隨著您實施了許多新舉措，只專注於提高盈利能力，您對核心建築業務的發展有何看法？

Yes. I would say it's in line with our plan. I mean, certainly, we had a wet Q1, which slowed our ramp-up of the year. So as we kind of look at Q2, it's -- it had a little bit of what would normally be in a Q1. So we expect that we'll continue to ramp up and certainly have a strong Q3 and finish to the year. I don't think where we're headed, the direction is changing at all. When we look at our CAP. Our CAP continues to grow, both in terms of kind of the size of our CAP, but the quality of our CAP is getting better too.

是的。我想說這符合我們的計劃。我的意思是，當然，我們的第一季度天氣潮濕，這減緩了我們今年的增長速度。因此，當我們看第二季度時，它有一些通常在第一季度中出現的情況。因此，我們預計我們將繼續增長，並且肯定會在第三季度和今年結束時表現強勁。我不認為我們前進的方向，方向根本沒有改變。當我們查看 CAP 時。我們的 CAP 持續增長，無論是從 CAP 的規模來看，還是從 CAP 的質量來看，我們的 CAP 質量也在不斷提高。

And we consistently are picking up more work with higher margins. And that's really good for our business. And even though we had challenges on I-64, we don't have those risky projects in our portfolio moving forward. And so the quality of our CAP is really, really different than what we've had historically. So as we look forward into 2024 and beyond, we feel really good about where we're headed directionally.

我們一直在以更高的利潤接續更多的工作。這對我們的業務確實有好處。儘管我們在 I-64 上遇到了挑戰，但我們的投資組合中沒有那些有風險的項目。因此，我們的 CAP 質量與我們歷史上的質量確實非常不同。因此，當我們展望 2024 年及以後時，我們對自己的發展方向感到非常滿意。

Our next question comes from Brian Russo with Sidoti.

我們的下一個問題來自 Sidoti 的 Brian Russo。

Just when I look at the midpoint of your revised revenue guidance of $3.4 billion. And then when I look at the 2024 target midpoint of about $3.75 billion, that implies about 10% year-over-year revenue growth. And I'm just curious, it seems like maybe the industry might be growing in the mid single digits, maybe slightly higher. How confident are you to get to that 2024 midpoint?

就在我看到你們修訂後的 34 億美元收入指引的中點時。然後，當我看到 2024 年目標中點約為 37.5 億美元時，這意味著收入同比增長約 10%。我只是很好奇，這個行業的增長速度似乎可能是個位數，甚至略高。您對達到 2024 年中點有多大信心？

Well, I think we're feeling really good. I mean, our CAP balance today is up significantly, as I mentioned in the prepared remarks and with Brent, it's higher quality and certainly a higher amount. And if you kind of look at the burn, it's tough with these best value projects to really look at a burn on a CAP consistently.

嗯，我認為我們感覺很好。我的意思是，正如我在準備好的發言中提到的，我們今天的 CAP 餘額顯著增加，對於布倫特原油來說，它的質量更高，數量當然也更高。如果你觀察燒傷情況，就會發現這些最具價值的項目很難真正持續地觀察 CAP 的燒傷情況。

But if you look at it from a 40% to 50% range, if we continue to pick up work, it's the pace we've been picking up work. We believe that, that 2024 revenue number of $3.6 billion to $3.9 billion, if we continue to do the things we're doing, we should be on the higher end of the midpoint than the lower.

但如果你從 40% 到 50% 的範圍來看，如果我們繼續加快工作，這就是我們一直在加快工作的速度。我們認為，2024 年的收入為 36 億美元至 39 億美元，如果我們繼續做我們正在做的事情，我們應該處於中點的較高端而不是較低端。

Okay. Great. Got it. And then just to follow up on your CAP and backlog profile, the several hundred million dollars of projects that you announced in the second quarter, roughly speaking, it looks like they could be anywhere between 12 to 36 months in duration.

好的。偉大的。知道了。然後，為了跟進您的 CAP 和待辦事項概況，您在第二季度宣布的價值數億美元的項目，粗略地說，它們的持續時間可能在 12 到 36 個月之間。

And I know you commented on that earlier, but maybe you could just elaborate on what gives you maybe the CMGC structure, et cetera. But what gives you the confidence that you can manage those projects and execute them on time and on budget, just given the multiyear durations of some of the projects?

我知道您之前對此發表了評論，但也許您可以詳細說明是什麼給了您 CMGC 結構，等等。但是，考慮到某些項目的持續時間長達多年，是什麼讓您有信心能夠管理這些項目並按時、按預算執行它們呢？

Yes. And on those projects, I mean, that's what we really appreciate about the best value contracting method. It's really all about collaboration. And the focus of those jobs is all about managing risk, identifying risk and managing risk for the owner, for the project itself and for ourselves. And that allows us to really mitigate most of the challenges that the project or entities would face or different stakeholders.

是的。我的意思是，在這些項目中，這就是我們真正欣賞的最佳價值承包方法。這實際上完全取決於合作。這些工作的重點是為業主、項目本身和我們自己管理風險、識別風險和管理風險。這使我們能夠真正減輕項目或實體或不同利益相關者面臨的大部分挑戰。

And so that's really the value of the CMGC process. A lot of the projects are broken down into smaller contracts on the construction side, so we can take a larger project like we have in Santa Barbara on that 101 corridor that's almost close to about $600 million overall project, but it's broken down into several projects ranging from around $75 million to $150 million.

這就是 CMGC 流程的真正價值。許多項目在施工方面都被分解為較小的合同，因此我們可以承擔一個更大的項目，就像我們在聖巴巴拉 101 走廊上的項目一樣，整個項目幾乎接近 6 億美元，但它被分解為幾個項目範圍從約 7500 萬美元到 1.5 億美元不等。

And so that allows us to really identify and mitigate risk in each specific segment that limits the exposure we have, which allows us to give a better price ultimately to our customer because we don't have to put the risk costs in there necessarily. So we have a lot of confidence also because we've done 60 of these types of projects in our company, and we've done them successfully.

因此，這使我們能夠真正識別和減輕每個特定細分市場中限制我們所擁有風險的風險，這使我們最終能夠為客戶提供更好的價格，因為我們不必將風險成本計入其中。所以我們很有信心，因為我們公司已經完成了 60 個此類項目，而且我們已經成功完成了。

And we believe that it's really a win for us. It's a win for our customers. And ultimately, they don't result in claims. And so we -- that's what gives us the confidence that as we continue to bring in these best value projects, these collaborative contracting type projects that we can execute on them.

我們相信這對我們來說確實是一場胜利。這對我們的客戶來說是一場胜利。最終，它們不會導致索賠。因此，這讓我們有信心，隨著我們繼續引入這些最具價值的項目，我們可以執行這些協作承包類型的項目。

It's very different than design build and certainly on these mega projects. I mean, the challenges that we saw in I-64 even in the last quarter, that those would have been managed differently under CMGC, and it would have been something that could have identified, mitigated or even risk would have been shifted back over to the owner. So I guess, hopefully, that answers your question there, Brian.

這與設計建造非常不同，尤其是在這些大型項目上。我的意思是，即使在上個季度，我們在 I-64 中看到的挑戰，在 CMGC 下也會以不同的方式進行管理，而且本來可以識別、減輕風險，甚至可以將風險轉移回主人。所以我想，希望這能回答你的問題，布萊恩。

Next question comes from Steven Ramsey with Thompson Research Group.

下一個問題來自湯普森研究小組的史蒂文拉姆齊。

Wanted to think -- make sure I understand the project completion factors pushing out the revenue. I think, I understand the emergency work part, that's pretty clear. After that, is the I-64 Bridge a part of that pushout and then thinking about California and the Central Groups, was that more of a broad push out in a number of areas and geographies? Or were there certain geographies and project types pushing that out?

我想要思考——確保我了解推動收入增長的項目完成因素。我想，我理解緊急工作部分，這很清楚。之後，I-64 大橋是否是該推出的一部分，然後考慮加利福尼亞州和中央集團，這是否是在許多地區和地區的更廣泛的推出？或者是否有某些地區和項目類型推動了這一點？

Yes. It's really just specific projects, a couple of projects in California and a couple of projects in our Central Group that just pushed to the right a little bit. So that work will still take place. We just didn't -- we're not going to get the burning thought on those projects in 2023. No shift into 2024. So the split between the 2 groups, it's around $25 million per group.

是的。這實際上只是具體的項目，加利福尼亞州的幾個項目和我們中央集團的幾個項目，只是稍微向右推了一點。所以這項工作仍然會進行。我們只是沒有——我們不會在 2023 年對這些項目產生緊迫的想法。不會轉移到 2024 年。因此，兩組之間的分配約為每組 2500 萬美元。

Okay. Helpful. That makes sense. Okay. And then thinking about the quick turn burn work that takes place a lot in the busy season, a focus for you guys. Is there more of that work in hand in 2023 than 2022?

好的。有幫助。這就說得通了。好的。然後想想在繁忙季節經常發生的快速周轉燃燒工作，這是你們關注的焦點。 2023 年手頭的工作是否比 2022 年更多？

Yes. So in the donut charts that we shared right now, our bid build, which is really the 100% design, competitively bid projects. Right now, it's about 54%. Last year, it was around 50%. So we've actually seen the best value pretty consistent. We've seen the design build come down. It's being replaced with those bid build projects. So that's becoming a bigger part of our portfolio in our CAP today.

是的。因此，在我們現在分享的圓環圖中，我們的投標構建實際上是 100% 設計的競爭性投標項目。目前，這一比例約為 54%。去年，這一比例約為50%。所以我們實際上看到最佳價值非常一致。我們已經看到設計構建的失敗。它正在被那些投標建設項目所取代。因此，這已成為我們今天 CAP 投資組合的重要組成部分。

Okay. Helpful. And then one more quick one. Maybe just some clarity on the water vertical strength that you're seeing there, if there's any pushouts in that vertical?

好的。有幫助。然後再快一點。也許只是對你在那裡看到的水垂直強度有一些清晰的了解，如果垂直方向上有任何推出的話？

No. The water business is doing well. I mean we continue to see a strong market, certainly with municipalities and industrials. So yes, no concerns in the water business. We see plenty of opportunities for that team.

不，水務生意做得很好。我的意思是，我們繼續看到強勁的市場，尤其是市政當局和工業部門。所以，是的，水務行業不用擔心。我們看到該團隊有很多機會。

Our next question comes from Michael Dudas with Vertical Research.

我們的下一個問題來自垂直研究公司的邁克爾·杜達斯（Michael Dudas）。

Your Materials business, you -- that was pretty good. When you think the second half of the year. Can you share a little bit about what you're seeing in pricing on the aggregate front and has there been some improved pricing and on the demand on that front relative to maybe what you expected in the beginning of the year?

你的材料業務，你——那非常好。當你想到下半年的時候。您能否分享一下您在總體定價方面所看到的情況，以及相對於您年初的預期，定價和這方面的需求是否有所改善？

Yes. I think it's back to what we expected in the year. Obviously, as we get past, I think, the wet weather in Q1, I think we were encouraged by the growth in our aggregate business. I'm not surprised by the relatively flat asphalt sales in the quarter. Typically, you would anticipate aggregate to proceed the asphalt as you kind of ramp up projects generally.

是的。我認為這回到了我們今年的預期。顯然，當我們度過第一季度的潮濕天氣時，我認為我們對總業務的增長感到鼓舞。我對本季度瀝青銷售相對平穩並不感到驚訝。通常，當您通常增加項目時，您會期望骨料能夠繼續鋪設瀝青。

So that was in alignment with what we believe we'd see. I think the pricing -- it's probably a little bit different everywhere we are in our geographies. But typically, we've seen pricing go up. We've been able to raise prices in certain markets, which is again encouraging for us as we look towards the back half of the year.

所以這與我們相信我們會看到的情況是一致的。我認為定價——我們所在地區的每個地方的定價可能都有點不同。但通常情況下，我們會看到價格上漲。我們已經能夠提高某些市場的價格，這對我們展望今年下半年來說再次令人鼓舞。

But naturally, last year, we were hindered by liquid asphalt, natural gas and diesel in the business. I think this year, I don't know if I want to say normalized, but I think it is -- things have normalized to some level versus certainly what we saw in 2022.

但自然地，去年我們的業務受到了液體瀝青、天然氣和柴油的阻礙。我認為今年，我不知道我是否想說正常化，但我認為，與 2022 年我們所看到的情況相比，情況已經正常化到一定程度。

I appreciate that, Kyle. And Lisa, as you indicated in your prepared remarks about how cash flow certainly seasonally should improve the second half of the year. Can you maybe share with us, remind us, given you restructured the balance sheet second quarter. And with some of the puts and takes with the guidance, how you're looking at the total year operating cash flow and CapEx and free cash flow generation for the full year?

我很感激，凱爾。麗莎，正如您在準備好的評論中指出的，下半年現金流肯定會季節性改善。鑑於您第二季度重組了資產負債表，您能否與我們分享一下，提醒我們。根據指導中的一些看跌期權和看跌期權，您如何看待全年的全年運營現金流、資本支出和自由現金流生成？

Yes, definitely. So for where the activity that we had in the second quarter related just to operating cash flow, that's -- from an operational perspective, is consistent if you look at kind of -- if you look at a 5-year average, related to operating cash flow. On the CapEx side, for our -- with our guidance, we have not changed that component.

當然是。因此，對於我們在第二季度的活動僅與運營現金流相關的情況，從運營角度來看，如果你看一下與運營現金流相關的 5 年平均值，這是一致的。現金周轉。在資本支出方面，根據我們的指導，我們沒有改變該組成部分。

So for full year, so we're still anticipating $100 million to $120 million CapEx expenditures for the full year. So that piece has not changed. So when we think about free cash flow for the year, that's a component that we've talked about related to our strategic plan and remains a focus area to ensure that as receivables increase that we're timely collecting, ensuring that our contracts are structured so that the cash flow is managed across the life of the project and then just ensuring as we end the year from a retention perspective that those balances are collected.

因此，就全年而言，我們仍預計全年資本支出為 1 億至 1.2 億美元。所以那一塊沒有改變。因此，當我們考慮今年的自由現金流時，這是我們討論過的與我們的戰略計劃相關的一個組成部分，並且仍然是一個重點領域，以確保隨著應收賬款的增加，我們能夠及時收回，確保我們的合同是結構化的這樣就可以在項目的整個生命週期內管理現金流，然後確保在年底時從保留的角度收回這些餘額。

And so for operating cash flow, overall, our internal targets, which we started to incentivize based on over the last couple of years, we've discussed that 5% of revenue for operating cash flow maintenance CapEx is anywhere from approximately 2.5% to 3%. So for free cash flow, currently, what we look at is about 2%. So those are the targets that we're striving for and continue to look at to increase those actually as we move to execute on our strategic plan further.

因此，對於運營現金流而言，總體而言，我們在過去幾年中開始激勵的內部目標，我們已經討論過，用於運營現金流維護資本支出的收入的 5% 約為 2.5% 至 3% %。因此，對於自由現金流，目前我們的預期約為 2%。因此，這些是我們正在努力實現的目標，並在我們進一步執行我們的戰略計劃時繼續尋求實際增加這些目標。

That's very helpful. And just quickly, any progress on claims outstanding and some of that fun stuff?

這非常有幫助。很快，未決索賠和一些有趣的事情有什麼進展嗎？

Well, I mean we're working through them. I wish we could share the progress we're making. But it's -- we're continuing to chase down a lot of the cash that we think we're entitled to. I think it's -- we're going to -- I believe we're going to get that money that we're due. It's just a matter of the timing. And so we are making progress, but nothing we can report today.

嗯，我的意思是我們正在解決這些問題。我希望我們能夠分享我們所取得的進展。但我們正在繼續追逐我們認為我們有權獲得的大量現金。我認為——我們將會——我相信我們會得到我們應得的錢。這只是時間問題。所以我們正在取得進展，但今天我們無法報告。

Next question comes from Jerry Revich with Goldman Sachs.

下一個問題來自高盛的傑里·雷維奇（Jerry Revich）。

This is Adam on for Jerry today. I was wondering if you could just update us a little more on the I-64 project. What's your level of confidence this can be complete by the end of the year? And any visibility on if the challenge is there around delays and other issues are behind us?

今天是亞當替傑瑞發言。我想知道您是否能為我們介紹一下 I-64 項目的最新情況。您對今年年底前完成這項工作的信心有多大？能否了解延誤和其他問題是否已經成為過去的挑戰？

Yes. Well, right now, we're looking at the project, it's scheduled to be complete in mid-October. So that's a slip from where we thought we're going to be in terms of kind of the mid-Q3. So that is a slippage for us. It's really down to a few things. It's production. The production rates have declined simply when you have a lot of scope going on in the same location. We saw a lot of impacts from different scopes, so working in the same area. So that was one component.

是的。嗯，現在我們正在研究這個項目，預計十月中旬完成。因此，這與我們認為第三季度中期的情況有所不同。所以這對我們來說是一個滑點。這實際上取決於幾件事。這是生產。當你在同一地點進行大量工作時，生產率就會下降。我們看到了來自不同範圍的許多影響，因此在同一領域開展工作。這就是其中一個組成部分。

There were some weather impacts that delayed the project. The other 2 things that we incurred, as part of our asphalt removal, we encountered some existing concrete that was underneath the asphalt section. It wasn't anticipated in the design. And so we had to remove that concrete and that set the project back. We also had unmarked waterline, which set back our strong [crews]. So those are some of the challenges that, that project faced in the last month or 2 and is contributing to the delay.

一些天氣影響導致項目延遲。我們發生的另外兩件事是，作為瀝青清除的一部分，我們遇到了瀝青部分下方的一些現有混凝土。這是設計中沒有預料到的。因此我們不得不拆除混凝土，這使項目陷入困境。我們的水線也沒有標記，這讓我們強大的[船員]受挫。這些是該項目在過去一兩個月面臨的一些挑戰，並導致了延遲。

My confidence level getting it done this year is high. I actually met with the project team and our executive team on that project with our joint venture partners. This week, we discussed the project and our ability to complete and we feel good. I think our team is confident that they can meet the October deadline.

我對今年完成這項工作的信心很高。實際上，我與我們的合資夥伴就該項目與項目團隊和執行團隊進行了會面。本週，我們討論了該項目以及我們完成的能力，我們感覺很好。我認為我們的團隊有信心能夠在十月份的最後期限前完成任務。

Obviously, there's a lot of work to do, but we have the resources and capabilities to get it done. So we are excited to get this thing behind us to a point where we are working and throwing everything we have to get it done because we need to get this job behind us just as I think everybody would agree.

顯然，還有很多工作要做，但我們有資源和能力來完成它。因此，我們很高興能把這件事拋到腦後，我們正在努力並竭盡全力來完成它，因為我們需要把這項工作拋在身後，就像我認為每個人都會同意的那樣。

That's helpful. And then can you just comment on what you're seeing out of DOT award activity in your markets? How has this trended year-to-date? And are you seeing growth in prospective projects in that category?

這很有幫助。然後您能評論一下您在您的市場中從 DOT 獎勵活動中看到的情況嗎？今年迄今為止，這一趨勢如何？您是否看到該類別的潛在項目有所增長？

Yes. I mean, I think our market is strong. I think we're certainly -- our CAP reflects the market that we're in. In our minds, we have a really healthy market. We're seeing the IIJA monies coming through. The private market is strong, too. So it's not just all in the public space. We're seeing a really strong market in the private space, which is encouraging. That's around mining, rail, solar and industrial work.

是的。我的意思是，我認為我們的市場很強大。我認為我們當然——我們的 CAP 反映了我們所處的市場。在我們看來，我們有一個非常健康的市場。我們看到 IIJA 資金到位。私人市場也很強勁。所以這不僅僅發生在公共場所。我們看到私人領域的市場非常強勁，這是令人鼓舞的。這涉及採礦、鐵路、太陽能和工業工作。

So that -- again, that's across all of our geographies, and that's why you're seeing really nice CAP improvement, certainly in California and Mountain, and we're going to -- we expect to see CAP improvement in our Central Group with some recent wins. So I think that really tells you we have an active market. There's a lot of information out there. If you go to the ARTBA website, American Road and Transportation Builders Association that really shows what the activity looks like even into 2024, and we're encouraged.

因此，再次強調，這在我們所有的地區都是如此，這就是為什麼你會看到 CAP 得到很好的改善，當然是在加利福尼亞州和山區，我們希望看到我們的中央集團的 CAP 得到改善最近的一些勝利。所以我認為這確實告訴你我們有一個活躍的市場。那裡有很多信息。如果您訪問 ARTBA 網站（美國道路和交通建設者協會），它確實展示了即使到 2024 年該活動的情況，我們也會受到鼓舞。

So we expect to continue to be able to build our CAP and kind of get back to that longer-range plan for us around 2024. We believe we have the market to continue to grow the company in a derisked way. And so we're excited about the opportunities in front of us.

因此，我們希望能夠繼續建立我們的 CAP，並在 2024 年左右恢復我們的長期計劃。我們相信，我們有市場以低風險的方式繼續發展公司。因此，我們對擺在我們面前的機會感到興奮。

This is the end of Q&A. And I would now like to turn the call back over to Mr. Larkin.

問答到此結束。現在我想將電話轉回給拉金先生。

Okay. Well, thank you for joining the call today. As always, we want to thank all of our employees for the work they do every day. We are now on the heart of our season, and I know how hard you are working to deliver results for the company, while setting another record safety year. I can feel the excitement around the trajectory of our company and every location I visit. Our focus on operational excellence is paying off.

好的。好的，感謝您今天加入通話。一如既往，我們要感謝所有員工每天所做的工作。我們現在正處於季節的中心，我知道你們正在多麼努力地為公司取得成果，同時再創安全紀錄。我可以感受到我們公司的發展軌跡和我訪問的每個地點的興奮。我們對卓越運營的關注正在得到回報。

Thank you for joining the call and your interest in Granite. We look forward to speaking with you all soon.

感謝您參加電話會議以及您對 Granite 的興趣。我們期待盡快與大家交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。