Posted on May 6, 2022
DredgeWire exclusive
Excerpt from earnings call transcript
Analyst Alex Rygiel
“…..then turning over to the heavy civil Marine segment. Backlog there of $317 million isn’t all that shabby over the last handful of years, solid number. Can you talk a little bit about mix there because mix is a big driver to the margin profile of that business? And again, what I mean by mix there is how much exposure in that backlog do you have right now for future dredging projects? And how should we think about that coming through the P&L over the next couple of quarters?”
Austin Shanfelter
“Great question. At the end of the day, division has done really well with dredgings hot in the market, but it’s down a little bit, it’s a little tougher margins for us in the business. So we’re going to work with our clients a lot next where we’re setting up meetings right now to start working with the core and work with other groups about trying to smooth the flow of the work and flow of the opportunities, which really assists us in many, many ways as a business. So I think we’ve got to get candid about what the utilization is, how we can improve utilization and dredging. And I hope to get that done in the next 30 to 45 days. And then it will let us look at the rest of the year in a lot more functional away.
So the question is, do we have our equipment in the right locations for the right opportunities, would it be better for us to move something into another market that we’re not utilizing here at the strongest we possibly can and break into new areas. So I’ll be really diving into that. What I do like about what’s happening in Marine is there is a lot more discipline in that group right now about what they are bidding, how they are doing their work. We’re bringing in some quality people. So I’m excited about adding some quality backlog to that division because I think we can handle it now maybe better than we could have 6, 9 months ago or whatever. And I want to really encourage the team to – we’re going to go out there looking for where we have to put people back, get people in. So to my competitors, we’re going to be starting to build this business and driving it forward with positive people.”
Source: Seeking Alpha
