Williams Industrial Services Group Inc.

Greetings and welcome to Williams Industrial Services Group's second quarter 2021 conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Chris Witte, Investor Relations Advisor. Thank you. You may begin.

Thank you, and good morning, everyone. Welcome to the Williams Second Quarter Commerce Call. With me on the call today are Tracy Pelliera, President and CEO, Randy Lay, Senior Vice President and CFO, and Kelly Powers, President of Operations and Business Development. After Tracy and Randy provide their prepared remarks, we'll open the call for questions. Our second quarter results were issued this morning, and a slide presentation is available on the company's website at www.wisgrp.com. If you turn now to slide two on the deck, I will review the Safe Harbor Statement. During this call, we may make forward-looking statements during the formal discussions as well as during the Q&A session. These statements apply to future events which are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors are provided in the earnings release and slides as well as with the other documents filed with the SEC. You can find all these documents on our website or at www.sec.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe these are useful in evaluating the company's performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. When applicable, we have provided a reconciliation of non-GAAP measures with comparable GAAP results in the tables that accompany today's release and slides. Please note that our conversation today will be about continuing operations unless noted otherwise. Starting with slide three, I'll now turn the call over to Tracy Palliera. Please go ahead, Tracy.

Thanks, Chris, and good morning, everyone. Our second quarter was one of many accomplishments, starting with top-line growth. Revenue rose 26% year-over-year to $91.6 million, with strong performance across the business. Even as revenue from Vogtle 3 and 4 was down, this was more than made up by higher sales in other areas, as Randy will review further in a moment. Suffice to say, we are well on our way to meeting our revenue guidance this year based on our current run rate, backlog, and active pipeline. Moreover, our backlog rose over $200 million, more than 44% since the end of the first quarter, due to the expansion of work at Indian Point and other recent rent wins, leaving us with a record of $664.4 million. At the same time, we kept operating expenses in line with the first quarter, although gross margins were impacted by mix and other factors, including timing, which again, Randy will go over in detail. We posted adjusted EBITDA of $4.9 million. Overall, the company remains well-positioned to have a great year due to our current book of business and ongoing demand for our array of infrastructure services, as shown on slide four. To reiterate, our total backlog is the highest it has ever been since we began reporting this metric, an achievement that underscores our commitment to customer satisfaction, the capabilities of our highly skilled staff, and our ability to win new business across a variety of end markets. As a reminder, in April, the New York Public Services Commission approved the transfer of the Indian Point Energy Center to Holtec, including three nuclear reactors. Through our past work and reputation, we're proud to be considered part of Team Holtec, which was instrumental in securing the additional decommissioning work at Indian Point. As you can see from the chart, Our business mix continues to evolve consistent with our goal to both scale our core nuclear business and further diversify the company into other attractive adjacent end markets. We have strengthened nuclear with new contracts and fuel storage and decommissioning as well as more projects for utility customers. We also achieved a number of other noteworthy wins during the quarter regarding other end markets, including one, the largest orders in the history of our New York and Jacksonville Florida office in the energy and delivery wastewater end markets, respectively. Two, our first order for natural gas distribution infrastructure replacement work in Connecticut. And three, the initial master contract services work for power distribution upgrades in Florida, a three-year project. Our backlog has grown further since the end of the quarter to 684.1 million as of July 31, 2021, and we anticipate it being even larger at the end of 2021. We have approximately 200 million of further highly probable pipeline opportunities, of which we expect to book at least another 100 million of orders during the second half. As a reminder, we began the year with over $500 million of highly probable backlog and have converted approximately $300 million of that pipeline to backlog year-to-date. Longer term, we're pleased to see the infrastructure bill in Washington making its way through Congress. As I've said in the past, we believe this initiative offers many opportunities for growth going forward. There appears to be plenty of funds to upgrade the electric grid and improve water wastewater facilities. While the fine print has yet to be revealed, this can only provide positive momentum to Williams in the years to come. And we're glad it has bipartisan support. In addition, the American Nuclear Infrastructure Act, another bipartisan bill introduced by the US Senate in July, 2021, supports continued operation of America's existing reactors, and sets the stage to deploy advanced nuclear technologies. Against this backdrop, as I'll discuss in a moment, we are in good shape to reach all of our previously announced guidance targets this year. In addition, our cash flow typically picks up in the second half, so we are poised to pay down additional debt and strengthen the balance sheet in the coming quarters. We're on track to do what we said we would this year, post solid top line growth, manage expenses, reduce debt, and provide healthy returns to our investors. I'll make a few more comments at the end of the call, but we'll now hand it over to Randy to discuss our quarterly financial results in greater detail. Randy?