Shimmick Corporation

Greetings and welcome to Shemek Corporation's third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Anthony Rasmus, Investor Relations. Thank you. You may begin.

Good evening, and thank you for joining us on today's conference call to discuss SHMIC's third quarter 2023 results. Slides for today's presentation are available on the investor relations section of our website, www.shmic.com. During this conference call, management will make forward-looking statements based on current expectations and assumptions, which are subject to risk and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect. We identify the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission, which can also be found on our investor relations website. We do not undertake a duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. you should refer to the information contained in the company's third quarter press release for definitional information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures. With that, let me turn the call over to Mitch Goldstein, Chimix Executive Chairman.

Good evening, and thank you all for joining us on today's call. I am joined by Steve Richards, Chimix CEO, and Devin Nordhagen, Chimix CFO. To begin today's call, I will be providing an overview of Chimic, followed by Steve, who will walk us through the market opportunity, Chimic's value proposition, projects, and strategy, and conclude with Devin providing an update on our third quarter financial performance. Chimic is a leading water infrastructure company that provides an extensive suite of solutions across the entire water spectrum. We focus on two key areas, water treatment and water resources, which includes dams, reservoirs, flood protection, and other infrastructure. Chimic is nationally ranked by Engineering News Record as a top 10 water solutions provider. Treating and delivering clean water is essential to sustaining communities and public health. Chimic has a long history of delivering both water and wastewater treatment facilities and technologies for public clients. Our solutions also enable efficient maritime transport along our nation's waterways, which of course is essential to our economy. We believe that there's a 50-year spending catch-up that's required in water infrastructure in this country just to ensure and maintain life as we know it. We are extremely excited about the next chapter at Chimek. We believe that as a public company, we will be well-positioned to continue our growth, capitalize on M&A opportunities, and continue to build on our skilled workforce. I'd like to thank our new investors for the support we received in our IPO. In addition to organic growth, we have never seen a better time to focus on M&A, which is why an important part of our growth strategy includes adding complementary services in water. We believe we have a unique vantage point from which to make these decisions and from which to evaluate strategic opportunities. The water infrastructure market, including smart water, data software, remediation, and facilities operation and maintenance, are all evolving and highly fragmented. making them ripe for consolidation. We are excited to be speaking with you today, and now I'll provide an update on our third quarter results. For the third quarter, we delivered revenue of $175 million and expanded our gross margin to 10%, a 260 basis point improvement from a year ago. Adjusted net income increased from 15 million to 37 million in the third quarter. Additionally, adjusted EBITDA grew approximately 63% over the same quarter last year to $42 million in the third quarter. Our backlog, which we view as a key differentiator for us versus our competitors, continues to be strong and finished at $1.2 billion as of the end of the third quarter. Steve and Devin will provide more information on our backlog in a bit. Additionally, there continues to be a robust pipeline of future work which we expect to grow alongside increases in federal funding. With that, I'll turn it over to Steve to discuss the business and the market opportunity in more detail.