The following is a summary of the Knife River Corporation (KNF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Knife River posted record first-quarter revenue in Q1 2024 but reported a larger adjusted EBITDA loss ($17.7 million) compared to prior year period due to increased pre-construction expenses and separation costs.
Contracting services contributed $423 million to the quarterly backlog, a 66% increase YoY.
Aggregates volumes declined 13% while asphalt volumes surged due to seasonal factors and specific projects.
The firm's 2024 financial outlook is reaffirmed with consolidated revenue estimates between $2.75 billion to $2.95 billion, and adjusted EBITDA between $425 million to $475 million.
The first quarter accounted for about 12% of total revenue, with variances mainly from product mix adjustments.
Business Progress:
The company advanced the implementation of their EDGE plan, introducing new analytic tools, sales team trainings, and efficiency-focused improvement teams.
Investments for the quarter included a greenfield ready-mix operation in Iowa, a liquid asphalt expansion in South Dakota, and multiple plant upgrades to lower production costs.
The corporation acquired a small ready-mix operation in South Dakota and continues to focus on growth and acquisition opportunities.
As part of commercial excellence initiative, the company gradually implements dynamic pricing. Anticipated price increases for the year are in the mid to high single-digit range.
Preparations are underway for a Q2 uptick, backed by well-trained crews, adequate inventory, and beneficial pricing momentum.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.