NWPX Infrastructure Inc (NWPX) 2024 Q1 法說會逐字稿

Hello, and welcome to the Northwest Pipe Company first-quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加西北管道公司 2024 年第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It's now my pleasure to turn the call over to Scott Montross, CEO of Northwest Pipe Co., please go ahead.

現在我很高興將電話轉給西北管道公司執行長斯科特·蒙特羅斯，請繼續。

Good morning, and welcome to Northwest Pipe Company's first quarter 2024 earnings conference call. My name is Scott Montross, and I'm President and CEO of the company. I'm joined today by Aaron Wilkins, our Chief Financial Officer. By now all of you should have access to our earnings press release, which was issued yesterday, May 1, 2024 at approximately 4 PM Eastern time. This call is being webcast and it is available for replay.

早安，歡迎參加西北管道公司 2024 年第一季財報電話會議。我叫史考特‧蒙特羅斯，是公司的總裁兼執行長。今天我們的財務長亞倫威爾金斯 (Aaron Wilkins) 也加入了我的行列。現在，你們所有人都應該可以訪問我們的收益新聞稿，該新聞稿於東部時間 2024 年 5 月 1 日昨天下午 4 點左右發布。該電話會議正在網路上直播，並且可以重播。

As we begin, I would like to remind everyone that the statements made on this call regarding our expectations for the future are forward-looking statements and actual results could differ materially. Please refer to our most recent Form 10-K for the year ended December 31, 2023, and in our other SEC filings for a discussion of such risk factors that could cause actual results to differ materially from our expectations. We undertake no obligation to update any forward-looking statements.

在我們開始之前，我想提醒大家，本次電話會議中有關我們對未來的期望的聲明均為前瞻性聲明，實際結果可能會存在重大差異。請參閱我們截至 2023 年 12 月 31 日的最新年度 10-K 表格以及我們向 SEC 提交的其他文件，以了解可能導致實際結果與我們的預期存在重大差異的此類風險因素的討論。我們不承擔更新任何前瞻性陳述的義務。

Thank you all for joining us today, and I'll begin with a review of our first quarter performance and outlook for 2024. Aaron will then walk you through our financials in greater detail.

感謝大家今天加入我們，我將先回顧我們第一季的業績和 2024 年的展望。然後，亞倫將向您詳細介紹我們的財務狀況。

Our first-quarter results were mixed with steel pressure pipe business surpassing our expectations. While precast came in softer than anticipated on the whole, our net sales of $113.2 million increased 14.2% year over year on solid profitability levels and representing the strongest revenue first quarter we have ever had first quarter revenue from our SPP segment totaled $80 million, an increase of 25.9% year over year, the highest first quarter ever reported in company history.

我們的第一季業績好壞參半，鋼製壓力管業務超出了我們的預期。雖然預製件總體上比預期疲軟，但我們的淨銷售額為1.132 億美元，在穩健的盈利水平上同比增長14.2%，這是我們有史以來最強勁的第一季度收入，我們的SPP 部門第一季度營收總計8,000 萬美元，較去年同期成長25.9%，創公司史上第一季最高紀錄。

For this segment, our performance primarily reflected higher production levels due to changes in project timing related to strong pipeline of bidding opportunities in early to mid first quarter and the improved bidding environment we've experienced to date following the relatively small bidding year we had in 2023.

對於該部門，我們的業績主要反映了較高的生產水平，這是由於專案時間的變化與第一季初至中期的大量投標機會有關，以及我們在相對較小的投標年度之後迄今為止經歷的投標環境的改善。

Our SPP team continues to do an excellent job executing on bids and projects. The very strong bidding activity in project wins in the first quarter led to our SPP backlog, including confirmed orders as of March 31 totaling $337 million, an improvement from $319 million as of December 31, 2023, and down from the $370 million at March 31, 2023. Our first quarter performance was partially offset by lower selling prices due to production mix and project timing. Steel prices continue to remain fairly high by historical standards and appear to be relatively stable, fluctuating $10 to $20 per ton up or down on a weekly basis. Lead times remain fairly short at between three and six weeks.

我們的 SPP 團隊繼續出色地執行投標和專案。第一季專案得標活動非常強勁，導致我們的SPP 積壓，包括截至3 月31 日的確認訂單總額為3.37 億美元，較截至2023 年12 月31 日的3.19 億美元有所改善，也較3 月31 日的3.7 億美元下降，2023。我們第一季的業績被生產組合和專案時間安排導致的銷售價格下降所部分抵銷。按照歷史標準，鋼材價格繼續保持在相當高的水平，並且似乎相對穩定，每週每噸上下波動 10 至 20 美元。交貨時間仍然相當短，只有三到六週。

Now turning to our precast segment, free cash revenue declined 6.6% year over year to $33.2 million, primarily due to very slow first quarter shipments in the nonresidential construction related precast business at Park resulting from fairly light bookings in the fourth quarter of 2023 due mainly to customer caution related to current interest rate environment. As a result, we booked only $16 million of orders at Park in the fourth quarter.

現在轉向我們的預製件部門，自由現金收入年減6.6% 至3,320 萬美元，主要是由於2023 年第四季的預訂量相當少，導致Park 的非住宅建築相關預製件業務第一季出貨量非常緩慢，這主要是由於客戶對當前利率環境保持謹慎。因此，第四季度我們在 Park 的訂單僅達到 1,600 萬美元。

However, our first quarter bookings at Park rebounded to a strong level coming in at over $22 million. The residential business at Geneva continued to be strong with strengthening order books as well as robust production and shipment levels, especially for a first quarter, which is typically the seasonally slower time of the year, both residential and nonresidential precast business came under modest pricing pressure during the first quarter.

然而，我們第一季 Park 的預訂量反彈至強勁水平，超過 2,200 萬美元。日內瓦的住宅業務持續強勁，訂單不斷增加，生產和發貨水平強勁，尤其是第一季度，通常是一年中季節性放緩的時期，住宅和非住宅預製件業務都面臨適度的價格壓力在第一季期間。

That, along with some of the mix changes that we experienced drove a lower average selling price for precast which was partially offset by higher shipping volumes from the residential precast business at Geneva. As of March 31, our order book totaled $52 million, up from $46 million as of December 31, 2023, and down from the $58 million as of March 31, 2023. First quarter consolidated gross profit increased 21.5% year over year to $20.1 million, resulting in a gross margin of 17.8%, up from 16.7% in the first quarter of 2023.

再加上我們經歷的一些組合變化，導致預製件的平均售價下降，但日內瓦住宅預製件業務的運輸量增加部分抵消了這種影響。截至 3 月 31 日，我們的訂單總額為 5,200 萬美元，高於截至 2023 年 12 月 31 日的 4,600 萬美元，也低於截至 2023 年 3 月 31 日的 5,800 萬美元。第一季綜合毛利年增 21.5%，達到 2,010 萬美元，毛利率為 17.8%，高於 2023 年第一季的 16.7%。

Our SPP gross margin of 17.8% was strong, increasing by approximately 560 basis points over the prior year period. And 280 basis points over the prior quarter, primarily due to higher production volume, given customer driven timing changes and by significant strength in first quarter bidding activity coupled with our persistent focus on higher-margin business.

我們的 SPP 毛利率高達 17.8%，較上年同期成長約 560 個基點。與上一季相比成長了 280 個基點，主要是由於產量增加、客戶驅動的時間變化、第一季度招標活動的強勁勢頭以及我們對高利潤業務的持續關注。

Our precast gross margin of 17.7% was down compared to 24.7% in the first quarter of 2023 as depressed shipments on the nonresidential construction side resulted in reduced first quarter revenue at the Park facilities and the associated lower overhead absorption. However, as we expected, the margins on the residential construction side at Geneva have also come under some modest pressure due to regional differences in market demand.

我們的預製件毛利率為 17.7%，較 2023 年第一季的 24.7% 有所下降，因為非住宅建築方面的出貨量低迷導致公園設施第一季收入減少以及相關的管理費用吸收減少。然而，正如我們所預期的那樣，由於市場需求的區域差異，日內瓦住宅建設方面的利潤率也受到了一些適度的壓力。

Next, I would like to provide an update on our capital allocation priorities. Our top strategic priority for 2024 remains growth of the business through our organic product spread strategy and M&A opportunities. Beginning with product spread, we continue to execute Level one of this strategy by building out capacity utilization at our Texas-based precast plants with a goal of maximizing overall efficiencies and production volume. During the first quarter, we bid on $11.8 million worth of projects outside of Texas and booked approximately $2.5 million worth of orders outside of Texas.

接下來，我想介紹一下我們的資本配置優先事項的最新情況。我們 2024 年的首要策略重點仍然是透過我們的有機產品傳播策略和併購機會來實現業務成長。從產品推廣開始，我們繼續執行這項策略的第一級，提高德州預製工廠的產能利用率，目標是最大限度地提高整體效率和產量。第一季度，我們投標了德克薩斯州以外價值 1180 萬美元的項目，並在德克薩斯州以外預訂了價值約 250 萬美元的訂單。

In regard to level two of our strategy to produce part precast products out of our existing Northwest Pipe locations. We were in production on 14 projects at the Geneva locations during the first quarter of 2024 and we are currently in production on 16 projects with more scheduled to come.

關於我們策略的第二級，即從我們現有的西北管道工廠生產零件預製產品。2024 年第一季度，我們在日內瓦工廠投產了 14 個項目，目前正在投產 16 個項目，預計會有更多項目投產。

Once the park precast products are more comfortably established at the Utah locations. We plan to expand our level two product spread to additional geographic locations over the next couple of years. Following organic growth, we are committed to repaying the debt we incurred to finance the 2021 acquisition of Parq USA to ensure we are well positioned to take advantage of future growth opportunities.

一旦公園預製產品在猶他州的地點安裝得更加舒適。我們計劃在未來幾年內將二級產品擴展到更多地理位置。在實現有機成長之後，我們致力於償還 2021 年收購 Parq USA 提供資金而產生的債務，以確保我們處於有利地位，能夠充分利用未來的成長機會。

As it pertains to our M&A strategy, we are actively evaluating precash related opportunities. Our criteria includes high-quality candidates that are accretive to our EPS that possess strong organic growth and margin potential, solid asset efficiency and a consistent positive cash flow profile until we are ready to execute a meaningful acquisition. We may opt to be opportunistic in repurchasing shares of our common stock, subject to our liquidity, including availability of borrowings and covenant compliance under our amended amended credit facility and other capital needs of the business.

由於這與我們的併購策略有關，我們正在積極評估預現金相關機會。我們的標準包括能夠增加我們每股收益的高品質候選人，這些候選人擁有強勁的有機成長和利潤潛力、可靠的資產效率和持續的正現金流狀況，直到我們準備好執行有意義的收購為止。我們可能會選擇機會主義方式回購普通股，這取決於我們的流動性，包括我們修訂後的信貸安排下的借款可用性和契約合規性以及企業的其他資本需求。

During the first quarter, we repurchased approximately 127,000 shares for a total of $3.7 million and since the initial authorization of our share repurchase in November 2023, we bought back a total of approximately $5 million worth of our shares as of April 30th. For I conclude, I'd like to summarize our outlook for the second quarter of 2024.

第一季度，我們回購了約127,000 股股票，總價值為370 萬美元，自2023 年11 月首次授權回購股票以來，截至4 月30 日，我們總共回購了價值約500 萬美元的股票。最後，我想總結一下我們對 2024 年第二季的展望。

In our SPP business, we anticipate both our revenue and gross margin to be relatively in line with the first quarter of 2024. As we move throughout the balance of the year, we expect continued strength in our revenue and margins similar to what we saw in 2022. We also expect backlog to remain high by historical standards, given the volume mix of expected SPP bidding in 2024.

在我們的 SPP 業務中，我們預計我們的收入和毛利率將與 2024 年第一季相對一致。隨著今年剩餘時間的推移，我們預計我們的收入和利潤率將繼續保持強勁，與 2022 年類似。考慮到 2024 年預期 SPP 招標的數量組合，我們也預期積壓訂單按照歷史標準仍將維持在較高水準。

I'd also like to add, we remain encouraged by the amount of activity we're seeing on our current and upcoming water transmission projects. For a more complete view of these projects, please review our investor presentations which can be found on the Investor tab of our website within the Events and Presentations section in our precast business following a slow first quarter, which is generally the case in our precast segment, we are expecting significant improvement in both revenue and margins for the second quarter of 2024 and a strong remainder of the year.

我還想補充一點，我們仍然對當前和即將到來的輸水項目的大量活動感到鼓舞。要更全面地了解這些項目，請查看我們的投資者演示文稿，該演示文稿可以在我們網站的「投資者」選項卡上的預製業務活動和演示部分中找到，第一季表現緩慢，這是我們預製件領域的普遍情況，我們預計 2024 年第二季的營收和利潤率將顯著改善，今年剩餘時間也將強勁。

We continue to believe in the strength of the precast business in the mid to long term, given the significant level of pent-up demand specifically for residential housing, a growing need for infrastructure spending in the US and our growing market position.

考慮到住宅方面被壓抑的需求量很大、美國基礎設施支出的需求不斷增長以及我們不斷增長的市場地位，我們仍然相信預製件業務在中長期的實力。

In summary, the first quarter marked a solid start to the year in what we believe will be a significantly stronger bidding environment. Despite persistent macro economic challenges. The diversification strategy that we embarked on in 2020 is continuing to take shape, and we remain focused on positioning ourselves to take advantage of future growth opportunities that we anticipate arising in the free cash space.

總而言之，第一季標誌著今年的良好開局，我們相信招標環境將明顯增強。儘管宏觀經濟挑戰持續存在。我們在 2020 年開始實施的多元化策略正在繼續形成，我們仍然專注於定位自己，以利用我們預計在自由現金領域出現的未來成長機會。

We continue to believe in the prospects of the precast business longer term, despite the current interest rate environment and the resultant impacts to our financial performance. We believe the less cyclical nature of the precast business helps balance out the business during periods of variability and steel pressure pipe market.

儘管當前的利率環境及其對我們的財務表現造成影響，但我們仍然對預製業務的長期前景充滿信心。我們認為，預製業務的周期性較小，有助於平衡鋼製壓力管市場波動期間的業務。

Given the more transactional nature of the precast business and associated faster cash conversion cycle. Our goal remains for our precast related business to grow to a similar size as our SPP business in the near term, I'd like to thank our teams in the field for the strong operational performance and for the continued emphasis on safety infused at every level of our organization.

鑑於預製業務的交易性更強，且現金週轉週期更快。我們的目標仍然是讓我們的預製件相關業務在短期內成長到與我們的 SPP 業務相似的規模，我要感謝我們在該領域的團隊強大的營運績效以及對各個層面安全注入的持續重視我們組織的。

Looking ahead, our priorities remain one, maintaining a safe workplace, where our employees are proud to work to persistently focus and on margin over volume, three, continuing to implement cost reductions and efficiencies at all levels of the company for continuing to identify strategic opportunities to grow the Company and five in the absence of M&A opportunities, returning value to our shareholders through opportunistic share repurchases.

展望未來，我們的首要任務仍然是一，維持一個安全的工作場所，我們的員工為能夠持續專注於利潤而不是數量而自豪地工作，三，繼續在公司各個層面實施成本削減和提高效率，以繼續尋找策略機會在沒有併購機會的情況下發展公司和五家公司，透過機會性股票回購為股東回報價值。

I will now turn the call over to Aaron, who will walk through our financial results in greater detail.

我現在將把電話轉給亞倫，他將更詳細地介紹我們的財務表現。

Thank you, Scott, and good morning, everyone. I'll begin today with an overview of our first quarter profitability. Diluted net income for the first quarter was $5.2 million, or $0.52 per diluted share compared to $2.4 million or $0.23 per diluted share in the first quarter of 2023. Consolidated net sales increased 14.2% to $113.2 million compared to $99.1 million in the year ago quarter.

謝謝你，斯科特，大家早安。今天我將首先概述我們第一季的獲利能力。第一季稀釋後淨利為 520 萬美元，即稀釋後每股收益 0.52 美元，而 2023 年第一季稀釋後淨利為 240 萬美元，即稀釋後每股收益 0.23 美元。合併淨銷售額成長 14.2%，達到 1.132 億美元，去年同期為 9,910 萬美元。

Steel pressure pipe segment sales increased 25.9% to $80 million to $63.5 million in the first quarter of 2023. As Scott highlighted earlier, steel pressure pipe sales exceeded our expectations, driven by a 54% increase in tons produced, resulting primarily from changes in project timing, which was partially offset by an 18% decrease in selling price per ton, primarily due to product mix.

2023年第一季，鋼製壓力管部門銷售額成長25.9%，達8,000萬美元至6,350萬美元。正如斯科特之前強調的那樣，鋼製壓力管的銷量超出了我們的預期，主要是由於項目時間的變化，產量增加了54%，但每噸售價下降了18%，這部分抵消了產量的增加，這主要是由於產品混合。

Precast segment sales decreased 6.6% to $33.2 million compared to $35.6 million in the first quarter of 2023 due to a 24% decrease in selling prices, primarily due to product mix was partially offset by a 23% increase in volumes shipped. Our Geneva business benefited from higher shipment volumes in the first quarter, while our park business saw contractors extend delivery time lines.

預製件部門銷售額下降 6.6%，至 3,320 萬美元，而 2023 年第一季為 3,560 萬美元，原因是銷售價格下降 24%，這主要是由於產品組合被發貨量增長 23% 部分抵銷。我們的日內瓦業務受益於第一季出貨量的增加，而我們的園區業務則看到承包商延長了交貨時間。

Products we manufacture are unique there for shipment volumes, in the case of precast production volumes in the case of steel pressure pipe and the corresponding average sales prices for both segments do not always provide comparable metrics between periods as they are highly dependent on the composition of each segment's product mix.

我們生產的產品在出貨量方面是獨一無二的，就預製生產量而言，在鋼壓力管的情況下，兩個細分市場的相應平均銷售價格並不總是提供不同時期之間的可比指標，因為它們高度依賴每個細分市場的產品組合。

Consolidated gross profit increased 21.5% to $20.1 million or 17.8% of sales compared to $16.6 million or 16.7% of sales in the first quarter of 2023 as GP gross profit increased 83%, $14.2 million or 17.8% of segment sales for the gross profit of $7.8 million, 12.2% of segment sales in the first quarter of 2023, primarily due to higher volume and changes in product mix.

綜合毛利成長21.5%，達到2,010 萬美元，佔銷售額的17.8%，而2023 年第一季為1,660 萬美元，佔銷售額的16.7%，原因是GP 毛利成長了83%，即1,420 萬美元，佔銷售額的17.8%。

Precast gross profit decreased 33% to $5.9 million or 17.7% of pretax sales, $8.8 million or 24.7% of segment sales in the first quarter of 2023, primarily due to changes in product mix. While demand has shown some recent signs of strength, particularly for residential products, precast segment's average selling prices have moderated through recent market pressures, which coupled with the shipment delays at Park, resulted in first quarter precast margins below our expectations.

2023 年第一季，預製件毛利潤下降33%，至590 萬美元，佔稅前銷售額的17.7%，佔部門銷售額的880 萬美元，佔部門銷售額的24.7%，這主要是由於產品結構的變化。儘管近期需求顯示出一些強勁跡象，尤其是住宅產品，但預製件領域的平均售價因近期市場壓力而有所放緩，再加上Park 的發貨延遲，導致第一季預製件利潤率低於我們的預期。

Selling, general and administrative expenses decreased 3.6% to $11.4 million or 10.1% of sales compared to $11.9 million in the first quarter of 2023 or 12% of sales. The decrease was primarily due to $0.5 million in lower incentive compensation expense for the full year of 2024. We continue to expect our Consolidated selling general and administrative expenses to be in the range of approximately $45 million to $47 million. Depreciation and amortization expense in the first quarter of 2024 was $3.4 million compared to $2.8 million in the year ago quarter.

銷售、一般和管理費用下降 3.6%，至 1,140 萬美元，佔銷售額的 10.1%，而 2023 年第一季為 1,190 萬美元，佔銷售額的 12%。減少的主要原因是 2024 年全年激勵薪酬費用減少了 50 萬美元。我們仍然預計綜合銷售一般和管理費用將在約 4500 萬美元至 4700 萬美元之間。2024 年第一季的折舊和攤銷費用為 340 萬美元，而去年同期為 280 萬美元。

Given the larger bidding year expected for the steel pressure pipe business and the planned commissioning of our new reinforced concrete pipe plan. We currently expect depreciation and amortization to increase modestly in 2024. Our non-cash incentive compensation expenses were $1 million for both the first quarters of 2024 and 2023. Interest expense increased modestly to $1.5 million from $1.4 million in the first quarter of 2023 due to higher interest rates, which more than offset the decrease in average daily borrowings.

鑑於鋼製壓力管道業務預計今年的招標規模更大，以及我們新的鋼筋混凝土管道計畫的投產。我們目前預計 2024 年折舊和攤提將小幅成長。2024 年及 2023 年第一季我們的非現金激勵補償費用均為 100 萬美元。由於利率上升，利息支出從 2023 年第一季的 140 萬美元小幅增加至 150 萬美元，足以抵消平均每日借款的減少。

For the full year of 2024, we expect interest expense to range between $5 million and $6 million. Our first quarter income tax expense was $2 million, resulting in an effective income tax rate of 27.5% compared to $1 million in the prior year quarter for an effective income tax rate of 28.7%. Our tax rate for the first quarter of 2024 and 2023 were impacted by non-deductible permanent differences. We continue to expect our tax rate for the full year of 2024 be within the range of 25% to 27%.

2024 年全年，我們預計利息支出將在 500 萬至 600 萬美元之間。我們第一季的所得稅費用為 200 萬美元，有效所得稅率為 27.5%，而去年同期為 100 萬美元，有效所得稅率為 28.7%。我們 2024 年和 2023 年第一季的稅率受到不可抵扣永久差異的影響。我們仍然預計 2024 年全年的稅率將在 25% 至 27% 的範圍內。

Now I will transition to our financial condition. Net cash used in operating activities was $26.1 million in the first quarter of 2024 for the net cash provided by operating activities of $26.3 million in the first quarter of 2023, primarily due to changes in working capital, which were partially offset by increased net income adjusted for noncash items cash flow generation remains a key strategic focus of our business as it is critical to the execution of our growth and shareholder return strategies. While we expected pressure on working capital needs for the steel pressure pipe business in the first half of the year. Working capital at March 31 was higher than expected due largely to higher production levels experienced in the quarter.

現在我將過渡到我們的財務狀況。2024 年第一季經營活動所使用的現金淨額為2,610 萬美元，2023 年第一季經營活動提供的現金淨額為2,630 萬美元，主要是由於營運資本的變化，但部分被調整後淨利的增加所抵銷對於非現金項目，現金流產生仍然是我們業務的關鍵策略重點，因為它對於執行我們的成長和股東回報策略至關重要。但我們預期上半年鋼壓管業務的營運資金需求將面臨壓力。截至 3 月 31 日的營運資金高於預期，主要是由於本季生產水準較高。

This was coupled with traditional pressures we see on steel pressure pipe segments. Working capital needs usually attributed to lower billings associated with the seasonal slowing in shipments to job In addition, we maintained higher inventory levels through the first quarter notice for this, the growth and production levels expected in 2024. However, we continue to expect these timing differences will reverse through the balance of the year.

這與我們在鋼壓力管段上看到的傳統壓力相結合。營運資金需求通常歸因於與工作發貨季節性放緩相關的帳單減少。然而，我們仍然預計這些時間差異將在今年剩餘時間內扭轉。

And as a result, we continue to expect full year 2024 free cash flow to range between $19 million and $25 million our capital expenditures totaled $4.6 million in the first quarter of 2024 compared to $4.4 million in the prior year quarter. We continue to anticipate our total CapEx to be in the range of $19 million to $22 million for full year 2024.

因此，我們繼續預期 2024 年全年自由現金流將在 1,900 萬美元至 2,500 萬美元之間，2024 年第一季的資本支出總額為 460 萬美元，而去年同期為 440 萬美元。我們仍預期 2024 年全年的資本支出總額將在 1,900 萬美元至 2,200 萬美元之間。

As Scott highlighted, we completed $3.7 million in share repurchases in the first quarter of 2024 at an average price of $29.39 per share, all of which were executed under a 10b5-1 trading plan since the inception of the program through April 30, the total value of share repurchases are approximately $5 million. As of March 31, 2024, we had 89.9 million of outstanding borrowings on our credit facility, leaving approximately 34 million in additional borrowing capacity on our credit line.

正如Scott 所強調的那樣，我們在2024 年第一季以每股29.39 美元的平均價格完成了370 萬美元的股票回購，自該計劃啟動以來到4 月30 日，所有這些都是根據10b5- 1 交易計畫執行的。截至 2024 年 3 月 31 日，我們的信貸額度上有 8,990 萬筆未償還借款，我們的信貸額度上還剩下約 3,400 萬筆額外借款能力。

In summary, we are very pleased with the first quarter results, which represent the best first quarter profitability performance the company has achieved in over a decade. Now that we are through the seasonally slower first quarter, we are well positioned to capitalize on improving market conditions through the balance of the year. Thank you to all of our employees for their continued exemplary execution and commitment to safety as well as to our shareholders for their continued support and confidence in Northwest Pipe Company.

總而言之，我們對第一季的業績感到非常滿意，這是該公司十多年來取得的最好的第一季獲利表現。現在，我們已經度過了季節性放緩的第一季度，我們已做好充分準備，在今年餘下的時間裡利用市場狀況的改善。感謝我們所有員工持續的模範執行和對安全的承諾，感謝我們的股東對西北管道公司的持續支持和信心。

I will now turn it over to the operator to begin the question and answer session.

我現在將把它交給接線員以開始問答環節。

(Operator Instructions) Brent Thielman from D.A. Davidson. Your line is now live.

（操作員說明）D.A. 的 Brent Thielman戴維森。您的線路現已上線。

I guess just first on that precast, I mean a little lower than we were I think in terms of margins this quarter, Scott or Aaron, what's kind of a reasonable case to a rebound in the next few quarters, just considering is some of the differences in regions and what sounds like a little better pricing or lower pricing being realized right now?

我想首先在預製件上，我的意思是，就本季度的利潤率而言，斯科特或亞倫，我的意思是比我們低一點，未來幾個季度反彈的合理情況是什麼，只考慮到一些地區差異以及目前正在實現的定價是否更好或更低？

I think when you when you're looking at the free cash flow premise, it's really the steel pressure pipe business ended up being significantly stronger than we thought it was going to be in the first quarters of. So as you know, that ties up a lot of current assets initially and then it starts to roll off of those current assets and then come back to the balance sheet. So we expect the steel pressure pipe revenues to be relatively stable throughout the year.

我認為，當你考慮自由現金流前提時，鋼壓力管道業務實際上比我們預期的第一季要強勁得多。如您所知，這最初佔用了大量流動資產，然後開始滾動這些流動資產，然後回到資產負債表。因此我們預計全年鋼製壓力管收入將相對穩定。

So now that we're up at a plateau, I think that we're going to we're going to see that reverse as we come out of this thing. Clearly, we're getting more all the time is more prepayments for steel and actually MOH. payments in fact, we we just won a big project. Not long ago, we were receiving well in excess of $10 million of prepayment for the whole project.

所以現在我們正處於一個平台期，我認為當我們走出這件事時，我們將會看到這種逆轉。顯然，我們一直在獲得更多的鋼鐵預付款，實際上是衛生部的預付款。事實上，我們剛剛贏得了一個大項目。不久前，我們收到了整個專案超過 1000 萬美元的預付款。

So I think that's going to contribute to the cash flow as we go forward. Two plus everybody in the senior management program at this company now has a cash flow goal for the year. So with it tied to variable compensation. So that is being very, very closely watched.

因此，我認為隨著我們的發展，這將有助於現金流。現在，該公司高級管理人員中的兩個以上每個人都有今年的現金流目標。因此它與可變補償掛鉤。所以這正在受到非常非常密切的關注。

So Brent, just to make, I think you may have said free cash flow or free cash in our segment, I kind of break out margins.

所以布倫特，我想你可能已經說過我們部門的自由現金流或自由現金，我有點突破利潤率。

What well I had that was going to make I'm sorry, Josh, you answered that.

我有多好的事情會讓我感到抱歉，喬什，你回答了這個問題。

But. No, I was asked for impairment at the precast market margins in energy boundary ought to be thinking about?

但。不，有人問我在能源邊界的預製市場利潤減損時應該考慮什麼？

Yes, it sounds like you think it's going to get better from here and with the Precor, it was it was really on the nonresi side part, the bookings were really, really slow in the fourth quarter of 2023. We booked like $16 million worth of business park in the fourth quarter, which really led to a and it's pretty transactional business on the precast side, right?

是的，聽起來你認為從現在開始情況會變得更好，對於 Precor，它確實處於非處方藥方面，2023 年第四季度的預訂真的非常非常慢。我們在第四季度預訂了價值 1600 萬美元的商業園區，這確實帶來了預製方面的交易業務，對吧？

So it really led to a very small shipping first quarter of 2024?

那麼這真的導致 2024 年第一季的出貨量非常小嗎？

Well, that's kind of rebounded now. As we've gone through the first quarter, we've booked in excess of $22 million at Park in the in the first quarter, which should lead to a pretty strong second quarter in Park and in those margins coming back up.

嗯，現在已經有所反彈了。在我們經歷第一季度的過程中，我們在第一季度在 Park 預訂了超過 2200 萬美元，這應該會導致 Park 在第二季度表現相當強勁，並且這些利潤率會回升。

The other thing is with free cash, we are still seeing a substantial demand from the residential side. And ultimately, what we're seeing is a Geneva order books, and that's mostly residential that's continuing to grow. And we've just implemented a price increase there in March because the bookings are coming in so strong. So we're pretty confident we're going to see a pretty good rebound in both both revenue and margins as we get into the second quarter and through the rest of the year.

另一件事是，在自由現金方面，我們仍然看到住宅方面的大量需求。最終，我們看到的是日內瓦的訂單簿，其中大部分是持續成長的住宅訂單。由於預訂量非常強勁，我們剛剛在三月實施了價格上漲。因此，我們非常有信心，隨著進入第二季度和今年剩餘時間，我們將看到收入和利潤率都出現良好反彈。

Okay. And Scott, just coming back to SPP. Yes, when I thought you would have seen some delays, I think you did see some delays just with respect to the poor weather in parts of the country, but it does things have been a huge impact. Was there was there pull forward this quarter? I'm just wondering why the outsized performance because it I had expected some some delays there and we'll start using project timing.

好的。Scott，剛剛回到 SPP。是的，當我認為你們會看到一些延誤時，我想你們確實看到了一些延誤，只是由於該國部分地區的惡劣天氣，但這確實造成了巨大的影響。本季有提前嗎？我只是想知道為什麼性能如此之大，因為我預計會有一些延遲，我們將開始使用專案計時。

I wouldn't say anything was pull forward, but it's really we had we had so much work bid in the first quarter and won so much work in the fourth first first quarter that we're starting to get pretty loaded up at some of the facilities.

我不會說有什麼是提前的，但實際上我們在第一季度有很多工作投標，並且在第四個第一季度贏得了很多工作，以至於我們開始在一些工作上變得非常忙碌。 。

So as a whole, we're having dividends, which jockey the production schedules around a little bit so that we can produce these things on time. And it really wasn't a pull forward. But I mean, we produced $80 million worth of revenue in the first quarter in the backlog still went up by like 18 or 19 million. I can't remember when exactly it was so you can you can you could kind of do the math on how much we won work in the first quarter. So we're pretty loaded up with some of the facilities.

因此，總的來說，我們有股息，這會稍微調整生產計劃，以便我們可以按時生產這些東西。這確實不是一個推動力。但我的意思是，我們第一季創造了價值 8000 萬美元的收入，但積壓訂單仍然增加了 18 或 1900 萬。我不記得具體是什麼時候了，所以你可以算一下我們在第一季贏了多少工作。所以我們的一些設施已經相當齊全了。

And just the last question to that, Scott, with all the work that you're picking up and maybe the pricing attached to that, is it more attractive I guess is the bid climate? I'm more appealing to you from a competitive standpoint.

斯科特，最後一個問題是，考慮到你正在做的所有工作，也許還有與之相關的定價，我想是投標環境更具吸引力嗎？從競爭的角度來看，我對你更有吸引力。

Yes, I think when you're when you're dealing about the pricing, it's it's a it's a function of what steel prices are in. One of the things is if steel prices are remaining pretty high by historical standards, they're pretty stable right now, fluctuating around a 25 or a 35 for for hot roll band. But there's two things that drive margins for the steel pressure pipe thing. One is obviously, demand and demand builds backlog industry-wide. And when backlogs build like that industry wide. What happens is is not everybody can do a job at the same time.

是的，我認為當你處理定價時，它是鋼材價格的函數。其中之一是，如果按照歷史標準，鋼材價格仍然相當高，那麼目前它們相當穩定，熱軋帶鋼價格在 25 或 35 左右波動。但有兩件事推動了鋼製壓力管道的利潤率。一是顯然，整個產業的需求和需求都在積壓。當整個行業的訂單積壓增加時。發生的情況是，並不是每個人都能同時做某項工作。

So you have less bidding pressure on these jobs and you tend to see the margin start to move its way up a bit, too. So we're pretty good happy about the direction that all that is going right now. And these margins are moving in the right direction at this point.

因此，這些工作的投標壓力較小，而且您往往會看到利潤也開始略有上升。因此，我們對目前所有事情的發展方向感到非常高興。目前這些利潤正在朝著正確的方向發展。

Excellent.

出色的。

Thank you.

謝謝。

I'll pass it on.

我會把它傳遞下去。

Your next question is coming from Julio Romero from Sidoti & Co.

您的下一個問題來自 Sidoti & Co. 的 Julio Romero。

Craig, just on there and maybe staying on that point on SPP, I'm just trying to maybe understand on strong margins a little bit better because they were really impressive. And as you just said, in response to Brent's question, it was customer-driven project timing. You said you had to move around production levels a bit, but it wasn't pull-forwards. Are you saying maybe you took on some some quick-turn work at like the we favorable? Is that whatever?

克雷格，就在那裡，也許還停留在 SPP 的這一點上，我只是想更好地理解強勁的利潤，因為它們真的令人印象深刻。正如您剛才所說，在回答布倫特的問題時，這是客戶驅動的專案時機。你說你必須稍微調整一下生產水平，但這並不是向前推進。您是說您可能在我們喜歡的公司從事了一些快速週轉的工作嗎？就這樣嗎？

Yes, we got first quarter was a little short fuse on it. And ultimately, we got a little bit higher production levels on it. But we're seeing we're seeing really, really strong bidding through the first quarter and we expect the year to be a pretty good strong bidding year and we have not even gotten to the IJA. funded part of this market for us on steel pressure pipe that is a thing that's probably out in 20 late 25, 26, 27, 28.

是的，我們第一季的表現有點急躁。最終，我們獲得了更高的生產水準。但我們看到第一季的競標非常非常強勁，我們預計今年將是非常強勁的競標年，而我們甚至還沒有進入 IJA。為我們的鋼製壓力管市場提供了部分資金，這可能會在 20 月 25、26、27、28 年末推出。

So the expectation is we have a pretty strong steel pressure pipe market coming at us for multiple years in a row. And when you get multiple strong markets for steel pressure pipe in a row, you tend to get a situation where the margins start to push up toward something that begins with a two at that point.

因此，預計我們將連續多年擁有相當強勁的鋼製壓力管市場。當你連續獲得多個強勁的鋼製壓力管市場時，你往往會遇到這樣一種情況：利潤率開始推高到以二開頭的水平。

So I think that we're kind of heading in that direction right now because of the demand that we're seeing coming forward. And the other thing with margins is higher production levels and you're spreading your fixed costs out over more tons, right?

因此，我認為我們現在正朝著這個方向前進，因為我們看到了未來的需求。利潤率的另一件事是更高的生產水平，並且您將固定成本分攤到更多的噸數上，對吧？

So it's a it's a better situation that way so we've we've got a pretty decent tailwind behind us. We believe on the steel pressure pipe side, both on revenue and in margin right now is as we go through the near term and quite frankly, longer term because of the IGA.

所以這是一個更好的情況，所以我們有一個相當不錯的順風在我們身後。我們相信，在鋼製壓力管道方面，無論是收入還是利潤率，目前都是我們經歷的短期，坦率地說，由於 IGA，從長期來看。

Got it. That's good color and thanks for. Thanks for adding that.

知道了。顏色很好，謝謝。感謝您添加這一點。

So I guess are you guys saying that you kind of exited March at a strong production level and that kind of carry into April. And that's what gives you the confidence that revenue and margins in 2Q for SPP. should should look like something that you posted in 1Q?

所以我猜你們是說​​你們在三月以強勁的生產水平退出了，並且這種情況延續到了四月份。這就是讓您對 SPP 第二季營收和利潤充滿信心的原因。應該看起來像您在第一季發布的內容嗎？

Yes, it's really what we have in backlog already. I mean, we carried, like I said, once and when Brent was asking questions. I mean, we produced we produced $80 million worth of revenue in steel pressure pipe in the first quarter and the backlog's still went up by 18 million or so so that you can do the math on how much kind of we won in the first quarter with work, and it's starting to build up at these things.

是的，這確實是我們已經積壓的。我的意思是，就像我說的，有一次，當布倫特提問時，我們就進行了。我的意思是，我們第一季在鋼製壓力管方面創造了價值 8000 萬美元的收入，而積壓訂單仍然增加了 1800 萬左右，因此您可以計算一下我們在第一季度贏得了多少收入工作，並且它開始在這些事情上建立起來。

So we expect the rest of the year on steel pressure pipe to be strong. And, you know, when you look at some of the construction trends, the you know, the non-residential stuff is really the nonresidential and the non-building part of non-residential stuff is has been pretty solid. And that's the that's the thing that affects where we are on steel pressure pipe. So we'd expect that to be a bit to be pretty solid as we're going forward through the rest of the year.

因此，我們預計今年剩餘時間鋼製壓力管道將表現強勁。而且，你知道，當你觀察一些建築趨勢時，你知道，非住宅產品確實是非住宅產品，而且非住宅產品的非建築部分非常穩固。這就是影響我們在鋼製壓力管道上的位置的因素。因此，隨著我們在今年剩餘的時間裡前進，我們預計這會相當穩固。

But do you guys think what you think what do you think volume and bidding inflected so quickly and strongly in 1Q, was there anything that you can call out there that drove that?

但是，你們認為第一季的成交量和出價變化如此之快、如此強烈，有什麼你可以指出的推動因素嗎？

No, I think the heart of it, what it is we had some some stuff that was originally intended for 23 that ended up in the first part of 2024. So probably the years would have been on a little bit more level. Had it not been for that, but I think it's that in some of the stuff that's coming forward, we're just now starting seeing some of the IGA funding is come into place.

不，我認為它的核心是什麼，我們有一些原本打算為 23 人設計的東西，但最終在 2024 年上半年完成了。所以這些年可能會比較平一些。如果不是因為這個，但我認為在即將到來的一些事情中，我們現在才開始看到 IGA 的一些資金已經到位。

It's slow getting started because there's like 46 million or 46 billion set aside for water type projects like the things that we do and so far through the end of the year in 2023, only about 1.8 billion of it's been actually put out a paid out. So there's a lot to be there's a lot to be done. And I think those projects are really going to help buoy this stuff as we go forward. And I'm not sure if I answered your question the way you want it, what was the other part of that?

起步很慢，因為大約有 4,600 萬或 460 億美元用於水類項目，例如我們所做的事情，到目前為止，到 2023 年年底，只有大約 18 億美元實際支付。所以還有很多事情要做，還有很多事情要做。我認為這些項目確實將有助於推動我們前進。我不確定我是否按照您想要的方式回答了您的問題，其他部分是什麼？

Really us just trying to get a feel for what like how you ended up with strong volumes and backlog up and anything onetime in nature that caused this inflection in bidding and volumes in the first quarter.

實際上，我們只是想了解如何最終導致強勁的成交量和積壓，以及導致第一季投標和成交量出現這種變化的一次性因素。

But I think you know enough yet, and I won't do is so have the in the first order what is starting to fill up a little bit in remember, we there's only three major competitors in steel pressure pipe after the consolidation that happened with us with us acquiring Amrun in 2018. So the tendency is those backlogs start to shift a little bit and the more the ones that have a nationwide footprint right so we can take on much more work than anybody else can and it's we're benefiting from that at this point.

但我認為你還知道得足夠多，我不會做的是，所以首先要記住，在發生整合之後，我們在鋼製壓力管領域只有三個主要競爭對手我們於 2018 年收購了 Amrun。因此，趨勢是這些積壓的訂單開始發生一些變化，並且更多的積壓訂單遍布全國，因此我們可以比其他任何人承擔更多的工作，而我們現在正從中受益。

Got it. And just last one for me is, can you just speak to how active you are in the M&A pipeline right now on the precast side, turning to get more active all the time, we're starting to see things that we're actually interested in and looking at. And I think as we go through a period of time, it's going to it's going to continue to improve. The multiples are still a little frothy on the acquisition side because obviously we're coming off a period where there's been some pretty high business levels. And I don't know that especially on the general pre-cast side that everybody is seeing the kind of strength that we're seeing in Utah.

知道了。對我來說，最後一個問題是，您能談談您現在在預製方面的併購管道中的活躍程度嗎？我認為，隨著我們經歷一段時間，它會繼續改進。收購方面的本益比仍然有點泡沫，因為顯然我們正在經歷一個業務水準相當高的時期。我不知道，尤其是在預製方面，每個人都看到了我們在猶他州看到的那種力量。

So we're starting to see those multiples adjust a little bit. And I think as we get out through the rest of this year. It's going to get more interesting with what we're seeing because we've got we've got a couple that we're interested in and looking at right now and ultimately where we're going to be going down that road.

因此，我們開始看到這些倍數發生了一​​些調整。我認為，當我們度過今年剩下的時間時。我們所看到的將會變得更加有趣，因為我們已經有了一些我們感興趣並正在研究的東西，以及最終我們將沿著這條路走下去的地方。

I think you know, the way we look at it, Leo, is that, you know, the share buyback thing is part of our growth strategy now, right? If we can't do anything and there's nothing practical or accessible on an M&A side, we're going to look at buying continuing to buy some shares back because we have to do something to make it to make it better for our shareholders. And that's that's how we're looking at this thing. So So ultimately, we will come up with something on the M&A. And until we do, we're going to continue down the path that we are because we're very active at this point.

我想你知道，Leo，我們看待這個問題的方式是，你知道，股票回購現在是我們成長策略的一部分，對嗎？如果我們無能為力，並且在併購方面沒有任何實際或可行的辦法，我們將考慮繼續回購一些股票，因為我們必須採取一些措施，使其對我們的股東更好。這就是我們看待這件事的方式。所以最終我們會就併購提出一些建議。在我們這樣做之前，我們將繼續沿著現有的道路前進，因為我們目前非常活躍。

Very good.

非常好。

Thanks a lot.

多謝。

Ed Jackson, Northland Securities.

艾德傑克遜，北國證券。

Your line is our IT, guys. Congrats on a super quarter and now My questions have all pretty much been answered. But just a couple of things with regards to the outlook. In your view with regards to steel pricing, my right to infer that you expect steel prices for 2024 to be relatively stable on a go forward basis and that it's underpinning your kind of 80 million quarterly run rate view?

夥計們，你們的線路就是我們的 IT。恭喜一個超級季度，現在我的問題幾乎都得到了解答。但關於前景只有幾件事。在您看來，關於鋼鐵定價，我是否有權推斷您預計 2024 年鋼鐵價格將在未來基礎上相對穩定，並且這支撐了您 8000 萬季度運行率的觀點？

You know, I'll tell you that I haven't seen and my background is in steel and I haven't seen stable steel pricing for hermetic for many years, right? So I think you go back from before 24 before things were really stable for long periods of time, but rate or it appears that we're in a little bit of a period of stability. I would think a lot of a lot of the publications are saying they expect that to kind of drift down as we go through the rest of this year.

你知道，我會告訴你，我沒有見過，我的背景是鋼鐵，多年來我沒有看到穩定的密封鋼材價格，對吧？所以我認為你可以從 24 日之前回溯到，當時情況在很長一段時間內都非常穩定，但是看起來我們正處於一個穩定的時期。我想很多出版物都在說，他們預計隨著今年剩下的時間，這種情況會下降。

But I think the of the steel producers at this point are doing a pretty good job of managing their markets and you see those guys will pull production capacity off relatively quickly. If things I think start to drop too far, and I think it's either going to be a little bit stable or maybe even potentially moving up at some point. But I don't see it dropping as we go through the year.

但我認為，目前鋼鐵生產商在管理市場方面做得相當好，你會看到這些人將相對快速地削減產能。如果我認為事情開始下降太多，我認為它要么會有點穩定，甚至可能在某個時候上升。但我認為隨著這一年的過去，它不會下降。

So I think in higher steel prices are good for us. On the steel pressure pipe side, it may tie a little more cash up short term, but ultimately that rolls off and goes to the balance sheet, but I think it's probably relatively stable to maybe inching up as we go out through this period of time because the minute that starts dropping a bit, those guys will pull production capacity off and stabilize things.

所以我認為鋼材價格上漲對我們有利。在鋼製壓力管道方面，它可能會在短期內增加更多現金，但最終會減少並進入資產負債表，但我認為隨著我們度過這段時間，它可能相對穩定，可能會小幅上漲因為一旦開始下降，那些人就會關閉產能並穩定局勢。

What do you what are you guys in terms of your kind of forward modeling? What do you kind of penciling in for kind of a per ton pricing for steel. I mean, when I look at first quarter on the Midwest contract, it looks like the average was just under 1,000 bucks a ton, but obviously, it's been, you know, lately it's been closer to 800. I mean, you've kind of what do you when you think about the remainder of 24, what are you penciling in as you model for your own business?

就你們的正向建模而言，你們是什麼？您對每噸鋼材的定價有何看法？我的意思是，當我查看中西部合約第一季時，平均價格似乎略低於每噸 1,000 美元，但顯然，你知道，最近已經接近 800 美元。我的意思是，當你想到剩下的 24 小時時，你會想到什麼，當你為自己的企業建模時，你會記下什麼？

Well, the price that we realized in the first quarter now remember some of these are are bought previously other previous pricing in fuel incoming steel costs that are in the low to, yes, probably lower nine hundreds because those include freight costs and extras for whatever, whatever kind of greatest steel that you're buying, right? So so if you know from what we've talked about, we've probably got something in the area of about 900 penciled in maybe a little bit less than that for the year. And I don't really expect that to change too much to tell you the truth.

好吧，我們在第一季實現的價格現在記得其中一些是之前購買的，燃料進料鋼鐵成本的其他先前定價低至，是的，可能低於九百，因為這些包括運費和任何額外費用，無論您購買哪種最好的鋼材，對吧？因此，如果您從我們所討論的內容中了解到，我們可能已經在大約 900 個區域內繪製了一些內容，可能比今年的數量要少一些。說實話，我並不認為這種情況會太大變化。

And then when when you look forward and we talked about within it came up in the last.

然後當你展望未來時，我們在最後談到了它。

My last question is with regards to the second quarter view for margins in the SDP. product to be similar to the first quarter. Is it fair what I'm hearing from you and everything else is that there's a more robust market in terms of opportunity?

我的最後一個問題是關於 SDP 第二季度利潤率的看法。產品與第一季類似。我從你那裡聽到的以及其他一切都表明市場的機會更加強勁，這公平嗎？

So it's lessening competition for individual bids. I mean, or is it are we going to see the margins that you had in the first quarter continue? Or is this market kind of goes along? Is there an opportunity for margins actually to improve all else being equal because you have that you have the greatest capacity and hence you have the more I'm saying you have an appetite to take on more business than other people can if that's a that's a fair question.

因此，這減少了個人投標的競爭。我的意思是，或者我們會看到你們第一季的利潤率繼續保持嗎？或者說這個市場正在持續發展？在其他條件相同的情況下，利潤率實際上是否有機會改善，因為你擁有最大的能力，因此你擁有更多的能力，我是說，你有興趣承擔比其他人更多的業務，如果這是一個公平的問題。

I think that was the backlog that we have and the projects that we've won and stuff that that it's at least something that we view to be stable going forward. But with the potential of having some upward movement, that makes sense, but it does make sense.

我認為這就是我們的積壓訂單和我們贏得的項目以及至少我們認為未來會穩定發展的東西。但由於有可能出現一些上升趨勢，這是有道理的，但它確實有道理。

And then going into free cash flow. And thanks very much for all the color with regards to the Home 24 guidance. Very helpful. But I mean, I obviously was a little surprised, and I understand why the free cash flow number for the first quarter went the way it did.

然後進入自由現金流。非常感謝您對 Home 24 指南的所有貢獻。很有幫助。但我的意思是，我顯然有點驚訝，我理解為什麼第一季的自由現金流數字會這樣。

I mean, it's actually a pretty decent problem to have, you know, because business is growing your committed capital, but if you're going to keep your run rate at $80 million and was to say that the runway for you given kind of the length opportunity with you know, a lot of the water projects that you mentioned growing not really until the end of 24, but really 25 and 26.

我的意思是，這實際上是一個相當不錯的問題，你知道，因為業務正在增加你的承諾資本，但如果你要將運行率保持在8000 萬美元，也就是說你的跑道給定了某種你知道的長度機會，你提到的許多水利工程其實不是到24年底才成長，而是到25和26年底。

Is it fair to assume that if you maintain kind of a revenue run rate going forward for the next year or two at that 80 million, that we would continue to see this more and more improvement in free cash flow because you're right, your working capital levels were running kind of flat.

假設如果你在未來一兩年保持 8000 萬美元的收入運行率，我們將繼續看到自由現金流的越來越多的改善，這是否公平，因為你是對的，你的營運資本水平基本上持平。

So when I'm saying we're going with this, like if you're going to run it at an $80 million run rate and you're running there now and you've just put this big increase, you know, this big drain in terms of your cash flow from working capital changes, would we would it be fair to say that your working capital levels would run relatively stable and that we could see an extended period of very solid free cash flow generation?

所以，當我說我們要這樣做時，就像如果你要以 8000 萬美元的運行率運行它，你現在就在那裡運行，你剛剛投入了這麼大的增長，你知道，這麼大的增長就營運資本變化帶來的現金流而言，我們是否可以公平地說，你們的營運資本水準將相對穩定，並且我們可以看到很長一段時間內非常穩定的自由現金流產生？

Yes, Ed, that would essentially be the way it works. We got caught in a little bit of a perfect storm. This quarter. Obviously had the production levels go up for steel pressure pipe had to kind of load the gun for the production levels coil, those are, you know, in our in our inventories, right. So really, no, we just didn't kind of get some of the good balances that we got a year ago and those those good balances are going to come. Like Scott said, we're doing a good job of getting out and working on NOH. payments with our customers working on steel prepayments with our customers.

是的，艾德，這本質上就是它的工作方式。我們陷入了一場完美風暴。本季。顯然，如果鋼製壓力管的生​​產水準上升，就必須為生產水準的線圈裝上槍，你知道，這些都在我們的庫存中，對吧。所以說真的，不，我們只是沒有像一年前那樣獲得一些良好的平衡，而這些良好的平衡將會到來。正如斯科特所說，我們在走出去並致力於 NOH 方面做得很好。與客戶付款 與客戶一起處理鋼鐵預付款。

So some of those good timing things that we've seen in the past or just kind of still in front of us for 2024. And I think the other thing, though, is as you kind of go back to just kind of a normalization of the revenue levels that will really kind of steady this year. The only thing that would really kind of steer it, I think off that path would be just a really weird blip in steel prices that has that has some potential if it were to and like we said, we don't we don't foresee that having or anything like that. But that would be the thing that really kind of derail that kind of $80 million run rate for SPP.

因此，我們過去見過的一些時機很好的事情，或者 2024 年仍然在我們面前。不過，我認為另一件事是，隨著收入水準回歸正常化，今年將真正穩定下來。唯一能真正引導它的事情，我認為偏離這條道路將只是鋼鐵價格的一個非常奇怪的小插曲，如果它是這樣的話，那麼它有一定的潛力，就像我們說的，我們不，我們不預見擁有或類似的東西。但這確實會破壞 SPP 8000 萬美元的運作率。

It's why process liquid steel with all else being equal because I understand what steel does with regards to the business itself. But all in all, I mean, that's all super encouraging.

這就是為什麼在其他條件相同的情況下加工液態鋼，因為我了解鋼鐵對業務本身的作用。但總而言之，我的意思是，這一切都非常令人鼓舞。

Then my last kind of question is when you talk about a fairly strong market for precast second quarter and beyond. I mean, are we talking, you know, like can you can you can you or what are we talking about here? I mean, like I mean, it's not it's not the biggest part of your business, obviously. But I mean, can you see that business popping north of $40 million in the second quarter I mean, is it that kind of pop or is it something a little more modest?

那麼我的最後一個問題是，當您談論第二季及以後的預製件市場相當強勁時。我的意思是，我們正在談論，你知道嗎，你可以嗎？我的意思是，就像我的意思一樣，顯然這不是你業務的最大部分。但我的意思是，你能看到第二季的業務成長超過 4000 萬美元嗎？

Oh, and by the way, congratulations on the improvement in bookings in that business that was we had us a lot of decline in that for many periods. So it was really nice to see that.

哦，順便說一句，祝賀該業務的預訂量有所改善，因為我們的預訂量在許多時期都出現了大幅下降。所以很高興看到這一點。

Yes, I think for the second quarter is kind of where you're saying, if you look at last year where we were in the second quarter, second, third quarters for free cash or the big the big time of the year first quarter is generally always slow.

是的，我認為第二季度就是你所說的，如果你看看去年我們在第二季度、第二季度、第三季度的自由現金情況，或者今年第一季的重要時刻是一般總是很慢。

And you know, obviously for us, one of the one of the businesses, the pre-cast infrastructure in Geneva is in Utah and they tend to get a lot of snow in the winter and the contractors are now doing as much work during the winter. So we believe that it's going to rebound like similar to what we did last year in the second quarter and probably the year before in the second quarter also. So I think it's kind of on a similar path and we expect again after a pretty slow first quarter for free cash. We expect the rest of the year to be pretty good.

你知道，顯然對我們來說，其中一家企業，日內瓦的預製基礎設施位於猶他州，他們在冬天往往會下很多雪，承包商現在在冬天做同樣多的工作。因此，我們相信它會像去年第二季度以及前年第二季度的情況類似地反彈。所以我認為這有點類似，在第一季的自由現金成長相當緩慢之後，我們再次預期。我們預計今年剩餘時間將會非常好。

And okay. Well, I mean it was a great quarter and it looks like you're really teed up for an extended period of financial performance market performance. Congratulations and everything, and I'll talk to you later next steps.

好吧。嗯，我的意思是，這是一個很棒的季度，看起來您真的為長期的財務業績市場表現做好了準備。恭喜你，一切順利，我稍後會和你談談接下來的步驟。

Thank you.

謝謝。

(Operator Instructions) David Wright from Henry Investment Trust.

（操作員說明）來自亨利投資信託公司的 David Wright。

Hey, guys. Good morning, David or David on Hey, congratulations. Great job on the stock buyback during the quarter. I think down here, that's a great thing to use your capital for M&A, and that's a really great average price, Scott, you were talking about on the kind of, you know, having a lot of SPP business and getting moving highlighted a 54% increase in tons produced. How do you do have to flex the labor force at all. I know in quarters in years past you've been kind of lower capacity utilization. How does how does that ramp up work from a staff.

大家好。早安，大衛或大衛，嘿，恭喜你。本季股票回購工作做得很好。我認為在這裡，利用你的資本進行併購是一件很棒的事情，而且這是一個非常好的平均價格，斯科特，你正在談論那種，你知道，擁有大量SPP 業務並開始移動，突出顯示54產量增加百分比。你到底要如何靈活運用勞動力呢？我知道在過去的幾個季度中，產能利用率一直較低。這如何提高員工的工作效率？

We sometimes we do that. But generally, when we're adding people back, it's not it's not like a whole push a whole shift or a whole crew. We may be adding here for five or seven or something like that when the when the production levels on steel pressure pipe get low, we will shed and probably something similar.

我們有時會這樣做。但一般來說，當我們重新增加人員時，並不是像整個班次或整個工作人員那樣進行整體推動。我們可能會在這裡添加五個或七個或類似的東西，當鋼製壓力管的生​​產水平下降時，我們會減少或類似的東西。

We can shed at 10 or 12 at a time certain ones of the plants. But we flex up and down pretty regularly with the change in the market situation. But and I think that right now, we're kind of in a position where we're staffed and the guys, I guess we've had a little bit of foreshadowing that this was going to potentially be coming because the way the bidding was that we've kind of staffed up for that are ready and we're ready to kind of take on the rest of the year shouldn't be much of an issue for the steel pressure pipe side at all. So we regularly do that not a big deal.

我們可以在 10 或 12 時對某些植物進行一次除毛。但隨著市場情勢的變化，我們經常上下波動。但是我認為現在我們的情況是，我們的人員配備齊全，我想我們已經有一些預感，這可能會發生，因為投標的方式我們已經做好了人員準備，並且已經準備好應對今年剩下的時間，這對於鋼製壓力管道方面來說根本不是什麼問題。所以我們常常這樣做沒什麼大不了的。

Any sense of kind of port capacity in the aggregate, the facilities operated at in the first quarter in aggregate, what I would say on that as a practical capacity for for steel pressure pipe, it was about 64, 65%.

從某種意義上的港口總容量來看，第一季運作的設施總計，我想說的是，作為鋼製壓力管的實際容量，約為 64%、65%。

So you should have some room on that front because that's my only question. Great quarter and the end of things, as I think you will reach the end of our question-and-answer session.

所以你應該在這方面留出一些空間，因為這是我唯一的問題。很棒的季度和事情的結束，因為我認為您將結束我們的問答環節。

I'd like to turn the floor back over to Scott for any further or closing comments.

我想將發言權交還給斯科特，以徵求進一步或結束評論的意見。

I'd like again to thank everybody for joining us today and just wanted to leave the call with a few a few comments. Obviously, we've seen significantly improve bidding in 2024 on the on the steel pressure pipe side. And we expect that this kind of environment is going to continue near term, which is really a 2024 thing. But I think the most important thing is we expect this environment really continue for the next three or four or so years, which should create a pretty interesting situation in steel pressure pipe.

我想再次感謝大家今天加入我們，並想在通話結束時發表一些評論。顯然，我們看到 2024 年鋼製壓力管道的招標顯著改善。我們預計這種環境將在短期內持續下去，這實際上是 2024 年的事。但我認為最重要的是，我們預計這種環境將在未來三、四年左右持續下去，這應該會在鋼製壓力管道領域創造一個非常有趣的局面。

And I think longer term, we're well positioned to continue to absorb that those business increases and produce them.

我認為從長遠來看，我們有能力繼續吸收這些業務的成長並生產它們。

And on the precast side, you know, the 2024, we anticipate we're going to have a stronger 24 than we did 23, even with the macroeconomic pressures that we're seeing and the outlook from the elevated interest rates. So I think we're in a we're in a situation where we said this last call with the consolidation that has happened in the steel pressure pipe business and the entry into the precast business and what that's done and where it's taken us to, it's created a different level of resiliency for this company.

在預製方面，你知道，2024 年，我們預計 24 年將比 23 年更強勁，即使我們看到宏觀經濟壓力和利率上升的前景。所以我認為我們現在的情況是，我們在最後一次電話會議上談到了鋼壓力管道業務的整合以及進入預製件業務，以及我們所做的事情以及它把我們帶到哪裡，它為這家公司創造了不同程度的彈性。

And ultimately, we're seeing that now we had a we had a relatively soft quarter in precast in the quarter, still came in one of the biggest first quarters we've ever seen or the biggest first quarter we've ever seen in the company. So if this would have been several years ago wouldn't have been that way. So that's an important thing to remember. So I again, thank everybody for your time and attention today, and we look forward to speaking with you again in August.

最終，我們看到，本季的預製件相對疲軟，但仍然是我們見過的最大的第一季之一，或者說是我們有史以來見過的最大的第一季。所以如果這是幾年前的話就不會是這樣了。所以這是一件需要記住的重要事情。所以我再次感謝大家今天的時間和關注，我們期待在八月再次與你們交談。

On our second quarter call So thank you very much.

在我們第二季的電話會議上，非常感謝。

Thank you. That does conclude today's teleconference and webcast may disconnect your line at this time, and have a wonderful day. We thank you for your participation.

謝謝。這確實表明今天的電話會議和網路廣播可能會在此時斷開您的線路，祝您度過美好的一天。我們感謝您的參與。