Good day, and welcome to the Williams Industrial Services Group Q4 2022 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star then one on a touch-tone phone. To withdraw your question, please press Star then two. Please note, this event is being recorded. I would now like to turn the conference over to Chris Witty, Investor Relations Advisor. Please go ahead. Thank you, good morning, everyone. Welcome to the Williams Q4 conference call. With me on the call today are Tracy Pagliara, President and CEO, Randy Lay, EVP and COO, and Damien Vassall, Vice President and CFO. After Tracy and Damien provide their prepared remarks, we'll open the call for questions. Our Q4 results were issued Friday afternoon, and a slide presentation is available on the company's website at www.wisgrp.com. If you now turn to slide two in our presentation, I'll review the Safe Harbor statement. This conference call may include forward-looking statements that represent the Company's expectations and beliefs concerning future events that involve risks and uncertainties and may cause the Company's actual performance to be materially different from the performance indicated or implied by such statements. All statements other than statements of historical facts included in this conference call are forward-looking statements. Although the Company believes that expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in this conference call, 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 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 accompanies 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 Pagliara. Please go ahead, Tracy. Thanks, Chris, good morning, everyone. Williams posted Q4 revenue of $55.8 million, compared with $79.2 million in last year's comparable period. As previously discussed, while dealing with lower nuclear and decommissioning work, we also encountered delays converting pipeline to revenue in 2022. That said, things are looking better for 2023, as I'll review in a minute. Our gross margin was negative for the quarter, reflecting the issues associated with our Florida water business, as well as costs tied to expanding in the transmission and distribution markets. Without such expenses, our adjusted gross margin was 12.5%. Operating expenses were $7 million this quarter, roughly in line with last year. Due to the lower revenue and negative margins, Williams had an adjusted EBITDA loss for the quarter of $7 million versus adjusted EBITDA of $3.6 million in 2021. At the end of the quarter, the company's backlog stood at roughly $333 million, putting 2022 behind us. Williams is starting to benefit from cost-cutting activities, the closure of non-core assets, an improved revenue margin, and adjusted EBITDA growth. In addition, we continue to work on assessing strategic alternatives, as I'll discuss more in a moment. Now turning to slide four, I'd like to provide a bit more color regarding our operations and outlook. As I just mentioned, the Q1 of 2023 is already proving to be better in terms of overall financial performance than the prior year period. Major customer projects have improved our year-over-year revenue comparison and even surpassed original expectations, with revenue through February of approximately $65 million. In addition, excluding our underperforming businesses, water, transmission, distribution, and chemical, which we are in the process of exiting, our gross profit through February was approximately $7.5 million or 12.8% of revenues, and our adjusted EBITDA was approximately $4.5 million. We are aggressively reorienting the company to target the most profitable markets and withdraw from non-core businesses, transforming Williams into a leaner, more focused enterprise with higher margins and better bottom-line results. At the same time, the company continues to explore all strategic options to further improve our operating outlook and unlock value for our shareholders. While we cannot provide detailed specifics at this time, the process, including working with Greenhill Already makes us comfortable about the future of Williams. In the interim, we are also working diligently with our existing lenders to ensure that we have the necessary liquidity to achieve our near-term goals. With that, I'll hand over the call to Damien to discuss our quarterly financial results. Damien? Thank you, Tracy, and good morning, everyone. Let's review the financials in greater detail. Turning to Slide five, we posted a revenue of $55.8 million for the quarter, as Tracy mentioned, versus $79.2 million in 2021. Sales fell year-over-year, primarily due to lower nuclear and decommissioning work, while revenue from Vogtle Units 3 and 4 was approximately $16.3 million during the period. Given demand trends and government spending priorities, as well as a solid backlog in pipeline, we remain optimistic about potential growth in 2023. Slide six shows operating trends for the company. We posted a gross loss of $1.7 million for the quarter versus a gross profit of $9.2 million last year. This performance reflects project mix, including the ongoing impact from T&D investments and the previously announced project in Florida operating at a loss. Excluding such startup costs and the Florida work, our gross margin would have been 12.5% for the quarter versus 11.6% last year, and our adjusted operating loss would have been approximately $400,000. We expect margins to improve as we near completion of certain projects and exit non-core businesses, as Tracy discussed. Operating expenses were $7 million for the quarter versus $6.8 million last year. We continue to target streamlining initiatives to reduce expenses going forward and improve underlying operating results. With that, operator, we can open the line for questions. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question today comes from Julio Romero with Sidoti & Co. Please go ahead. Thanks. Hey, good morning. Thanks for taking my questions. On your March 2 press release, you talked about your performance through that date in 2023. Revenue was trending higher year-over-year at that point. Can you just speak to if that's still the case today? In other words, did revenue through March grow year-over-year compared to the Q1 of 2022? Yeah. I'll take that one, Tracy. Julio, thanks for the question. As Tracy mentioned, Q1 of this year is coming in strong. The early indication of the March results of 2023 mirrors the trend that we've seen for the first two months. In comparison to Q1 of last year, from a volume perspective, it'll be much stronger from what we saw a year ago this time. Okay. No, that's very helpful. I appreciate that. Just turning to the backlog, can you maybe talk to order trends, you know, through the first three months of the year, and how that's been looking as we stand here today? Yeah. I'll point to, you know what we're seeing. We're seeing decent orders come through in the Q1. Our pipeline remains robust. We're in the process of executing on some pipeline opportunities to convert those to backlog. Okay, great. Maybe touching on the balance sheet, if you could just, talk to the liquidity of the company as it stands today, and maybe how much availability do you have today to tap on the revolver and on the delayed drawdowns? Yeah. I won't speak to the precise liquidity numbers as we sit here today. However, I will say that our lenders have continued to be supportive of the business, through liquidity support. The relationship remains strong and they are supportive of the company. Okay. Very good. If I could squeeze one more in. If you could, for modeling purposes, give us a sense of what GAAP interest expense dollars should look like this year. Yeah. We're expecting GAAP interest to be in the $5 million-$5.5 million range for 2023. Okay. I'll hop back at the queue. Thanks very much for taking my questions. Thank you. The next question comes from John Deysher with Pinnacle. Please go ahead. Good morning, everyone. Thanks for taking my questions. I'm starting off, could we get a little more detail in terms of the Florida water projects and the T&D startups? I think the last time we spoke you indicated that some of the unprofitable Florida project contracts would spill over into 2023. Where are we with that, and when will those unprofitable projects be off the books completely? Randy, you wanna take that? Certainly. We have 15 active projects in Florida, excluding some ongoing relationships that are in the related businesses to water. Of those, we expect that by the time we exit Q2 or pretty close therein, John, we'd be down to about five active projects, and those will drop off as we go into Q3. With the exception of one project that we expect final completion of will drop off in the first part of 2024, just as we wrap up that project. That's the array. We're expecting substantial completion at a good number of projects in the first half of 2023, and then in the balance of 2023, we'd expect the others to be done with the exception of one. Okay. on the T&D business, have the investments that you need to make, are complete at this point, or what's the delta gonna be on the T&D business in 2023? In the transmission and distribution businesses, we made the decision that we would withdraw from those markets, given the, as Tracy had mentioned, given the focus, we focused on those businesses that were core to the company. The TECO business in Tampa has been wound down. That was completed pretty recently here in the past several days. The business in Connecticut will be with Eversource, will be wound down by the end of April. There will be a substantial improvement. Given that both of these businesses were in their start-up investment phase, I can't, won't quote a specific number, but there'll be a substantial improvement as the start-up expenses will obviously be gone, as well as the ongoing overhead expenses. We'd expect a pretty good pickup in the second half of the year against those expenditures that existed in 2022. Those will all be wound down by March or by June of this year? End of April. End of April. End of April. TECO, to be specific, to be clear, TECO is shut down. That is gone as of the end of the Q1. The business in Connecticut will be substantially wound down by the end of April. Okay, good. Chemicals, when will that be wound down? We have two projects that are existing. One pure chemical project that is in the final stages of completion and in final billing now as we speak. I'd expect that in the next couple of weeks, that'll be wound down. Then we have an ongoing project with a municipality that I would expect will be completed in the second half, and that will wind. In the meantime, obviously, we're reducing our overhead expenses and others that won't be associated with that business. I would expect that by the end of Q3, plus minus a little bit, we would be we'd be completed with these two. Okay. By the end of Q3, most of the wind downs will be complete. Correct. Okay, good. Just roughly speaking, what would you say the combined delta might be once those are wound down? Gross income. Well, certainly, I mean, I wouldn't. Damien, do you wanna take a crack at that? Because I know there are lots of lots of variables there. John, just so I understand the question as far as what would the total cost of exiting those businesses would be once we get there? I was thinking, you know, you're gonna have losses from those three businesses in the first half. Once those losses go away, what would you expect gross income to increase by roughly? Yeah. If the first, you know, if the first two months are any indication, on a pro forma basis, we believe gross income would improve by at least four and a half million, I think there will be upside to that. $4 and a half million per year? Yes. Okay. There's upside to that. Okay, good. That's helpful. Just, could you remind us on Vogtle Units 3 and 4, when those projects are supposed to be complete? The last data I have is Vogtle Unit 3 in March of this year and Vogtle Unit 4 in December of this year. Is that still ballpark correct? That's roughly correct. I think Vogtle 4, they're thinking it'll be October, November, but it could push. Vogtle 3, they're actually generating electricity out of as we speak. I mean, they've hit the critical path where they're able to do that. We're really down to Vogtle 4 at this point. Okay, good. How much of the backlog is Vogtle related at this point, Tracy? It's less than $20 million, but Damien, will you check that for me? Yeah. I'll take a look. Yeah. It's around $20 million. $20 million. Okay, good. Last one from me. I noticed the headcount came down significantly. Have all the cost reductions other than the wind down of the unprofitable projects, implemented at this point? Yes. Yes. Okay. All right, good. All right, good. It sounds like there's good news in store, so we wish you good luck. Thank you. At this time, there appears to be no further questions in the queue, so I'll turn the call back over to Mr. Pagliara for any closing remarks. Thank you for your participation today. We appreciate your interest and time in Williams and look forward to speaking again next quarter. Take care and have a great day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.