Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) Q1 2024 Earnings Call Transcript

Avi Jaroslawicz: Hey, guys. Thank you on for Steve Fisher. So I’m just trying to understand some of the math and communications around what happened in the first quarter in US pumping where revenues had a impact from weather, and the adjusted EBITDA was down about $6 million. So we kind of be considering that as roughly what you guys expected in the margin for the first quarter as in like will you — anyways expecting adjusted EBITDA to be down for the segment year over year, regardless because if you didn’t, but it sounds like that $7 million is expected to come in with a very high incremental margin. So just trying to understand if I’m missing something there.

Iain Humphries: Yeah. First of all, that’s not the margins to expect for the US pumping business going forward. When we have weather events, obviously, the downstream effect from interrupted volume reduces the operating leverage. So yes, don’t expect that margin performance going forward. It’s going to be more consistent, if not improving, like I said earlier, through the rest of the year. So as we accelerate, where we can, the volume of work, clearly we get operating leverage, which improves margin, improves utilization of our equipment and our people. So certainly the Q1 event and the effect of that is more amplified than the normal run rate. And as we become more efficient like I said, the margin will improve.

Bruce Young: And what I would add to that is we have variable costs in labor and fuel and repair and maintenance. But in January, we still did the normal repair and maintenance that we would have done on that equipment just because it was scheduled and the people and equipment were there to do in the parts supply. But that’ll that’ll actually and offset through the remainder of the year and because it is ultimately variable to our total costs.

Operator: Thank you. At this time, this concludes our question and answer session. I would now like to turn the call back over to Mr. Young for closing comments.

Bruce Young: Thank you, Andrew. We’d like to thank everyone for listening to today’s call, and we look forward to speaking to you when we report our second-quarter fiscal 2024 results in June. Thank you.

Operator: Thank you. Ladies and gentlemen, this concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.