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NRC Group Holdings Corp. (NYSEMKT:NRCG)
Q1 2019 Earnings Call
May 7, 2019, 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good afternoon, everyone and thank you for participating in today's conference call to discuss NRC Group's financial results for the first quarter ended March 31st, 2019. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the * key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press * then 1 on your telephone keypad. To withdraw your question, please press * then 2. Please note this event is being recorded.

Joining us today are NRC Group's President and CEO Chris Swinbank, CFO Joe Peterson, and the company's External Director of Investor Relations Jared Filippone. Following their remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Jared Filippone as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Jared, please go ahead.

Jared Filippone -- External Director of Investor Relations 

Thank you, Brandon. I would like to remind everyone that in the course of this call, to give you a better understanding of our operations, we will be making certain forward-looking statements. These statements are subject to numerous risks and uncertainties that can cause actual results to differ materially from such statements.

For information concerning these risks and uncertainties, please see NRC Group Holding Corp.'s publicly available filings with the SEC, including its quarterly report on Form 10-Q for the quarter ended March 31st, 2019 that anticipates filing today. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

On today's call, we will also discuss adjusted EBITDA and free cash flow conversion, which are non-GAAP financial measures. Please refer to the earnings release we issued this morning for a definition and reconciliation to GAAP. We believe the presentation of adjusted EBITDA and free cash flow conversion is useful because it provides investors and industry analysts the same information that we use internally for purposes of assessing our liquidity and core operating performance.

I would like to remind everyone that this call will be available for replay starting after the call through May 21st, 2019. A webcast replay will also be available via the link provided in today's press release as well as available on the investor relations section of the company's website at ir.nrcg.com.

Now, I would like to turn the call over to the President and CEO of NRC Group, Chris Swinbank. Chris, please go ahead.

Chris Swinbank -- President and Chief Executive Officer

Thank you, Jared and good afternoon, everyone. It's a pleasure to be joining you. While Joe will be providing details on our first quarter 2019 results momentarily, I'd like to start on slide three with a brief review of our performance. Operating revenue in the first quarter was up 41% to $100.5 million. Net loss in the quarter was $8.5 million or $0.23 per share, compared to a net loss of $0.4 million or $0.02 per share in the prior year period. Adjusted EBTIDA was $17.2 million in the first quarter of 2019 compared to $17.5 million last year. Free cash flow conversion in the quarter was 91%.

Now, on to slide four, we had another quarter of significant accomplishments and achievements under our long-term growth strategy. As I mentioned, operating revenue increased 41% in the first quarter. This was primarily driven by contributions from acquisitions made in 2018 as well as strong organic growth across all segments and excluding acquisitions, operating revenue grew 14% in the first quarter.

Specifically, organic growth was driven by better than expected performance at our Karnes County waste disposal facility and increased emergency response activity. Our Karnes County waste disposal facility posted strong results in the quarter, driven by increased volumes on the heels of continued drilling activity in the Eagleford Basin. I will review our waste disposal expansion efforts later in the call, but the Reagan County and Pecos County facilities remain on track to open in the second quarter.

Also in the quarter, we signed two additional customers in our National Emergency Response Program, which effectively outsources a customer's emergency response capabilities to NRCG. We are also looking at further expansion opportunities for this program, including opening an additional 24/7 operations center in our Houston offices. We believe the National Emergency Response Program is a natural fit given our existing global footprint, proven independent contractor network, existing 24/7 call center capabilities, and long-standing expertise and safety record.

I am encouraged by the team's continued progress and success in growing this aspect of our business and I'm confident in the program's ability to differentiate NRCG from the competition as well as be a main contributor of our continued growth.

In our domestic environmental services segment, we had several large emergency responses begin to ramp up late in the first quarter, which are expected to contribute meaningfully in the second quarter. Specifically, this work is related to a chemical fire that occurred in the Houston ship channel as well as emergency response work in California.

Additionally, there was seasonality in our domestic environmental services business and the first quarter is typically the lightest quarter of the year for the segment, with the majority of adjusted EBITDA generated in the remainder of the year.

Before turning the call over to Joe, I think it's important to reiterate that we are solidly on track to achieve our previously communicated 2019 outlook. We generated strong operating revenue growth across all segments in the first quarter with contributions from several of our key growth drivers. Despite some incremental expenses occurred in the quarter, a portion of which will benefit our emergency response business in the remainder of 2019. There is positive momentum across our businesses and end markets.

With that, I will now turn the call over to Joe to speak about our first quarter financial results in more detail. Joe?

Joe Peterson -- Chief Financial Officer

Thank you, Chris and good afternoon, everyone. Moving to our financial results for the first quarter on slide 6, operating revenue increased 41% to $100.5 million compared to $71.2 million in the first quarter of 2018. The increase was largely driven by acquisitions completed in 2018, organic growth across all segments and better than expected waste disposal results in our Karnes County facility and an increase in emergency response activity. Excluding the impact of acquisitions, organic operating revenue growth was 14% in the first quarter.

Next, operating expenses, which include costs of revenue were exclusively depreciation and amortization in the first quarter were $71.3 million compared to $48.4 million in the prior year period. The increase is primarily due to increase in operating expenses related to the acquisitions completed in 2018. Additionally, we experienced higher levels of emergency response work that required the use of subcontractors, which drove increased variable costs compared to the prior year quarter.

Lastly, we also incurred some initial start-up costs in the quarter related to larger domestic environmental service project-based work in southern California and Texas, which has now commenced in the second quarter of 2019.

General and administrative expenses in the first quarter were $16.9 million compared to $10.4 million in the prior year period. Approximately $4.2 million of this increase was related to acquisitions completed in 2018 with the remaining increase primarily due to the increase in public company costs and one-time non-operational charges from prior periods.

Net loss, excluding dividends from Series A preferred stock in the first quarter of 2019 was $8.5 million or a loss of $0.23 per share compared to a net loss of $0.4 million or $0.02 per share in the prior year period. The decline was primarily a result of higher interest expense, increased depreciation and amortization, and a change in fair value contingent consideration related to Quail Run and the Clean Line acquisitions. Adjusted EBITDA calculated consistent with our senior credit facility was $17.2 million in the first quarter of 2019 compared to $17.5 million in the prior year period.

Next, I'd like to briefly review our segment results, starting on slide seven. The Sprint segment grew operating revenues 27% in the first to $21.1 million, driven by expanded environmental service operations, the acquisition of Quail Run in October 2018, and better than expected results in our Karnes County waste disposal facility. Operating profit increased 31% to $8.5 million with growth in higher margin waste disposal operating revenue driving the increase in operating profit and margins for the quarter.

Slide eight outlines the performance of our domestic environmental service segment, which grew operating revenue 49% in the first quarter to $60.9 million. The increase was largely due to the acquisition of SWS in May of 2018 as well as increased emergency response activity across several regions.

Operating profit in the first quarter was $2.4 million compared to $2.5 million in the year ago quarter. The slight decline was largely due to project mix specifically Alaska and Southern California as a few larger high-margin jobs from the first quarter 2018 did not reoccur in the same way in the first quarter of 2019. Additionally, we incurred some additional start-up costs related to emergency response project-based work and now projects that have commenced in the second quarter of 2019.

Next, on slide nine, details of standby segment performance -- in the first quarter, operating revenue increased 16% to $10.4 million compared to $9 million in the year ago quarter, primarily due to retainer growth and an increase in emergency response activity. Operating profit in the first quarter was $4.2 million compared to $4.5 million in the year ago quarter. The slight decline was due to a lower emergency response project-based work requiring utilization of more subcontractors in the first quarter of 2019.

Additionally, within the standby segment, our Mexico operations are beginning to ramp as several production campaigns have kicked off, which Chris will cover a little bit later. Lastly, slide ten, outlines of performance of our international segment, which grew operating revenue 70% in the first quarter to $8.1 million. The increase is primarily due to the acquisition of Clean Line as well as increased emergency response operating revenue in Turkey, partially offset by lower operating revenues in the North Sea region. Operating profit in the first quarter increased 75% to $1.3 million due to the continued focus on higher margin land base service offerings.

Turning to our balance sheet, as of March 31st, 2019, we had $17.9 million of cash and cash equivalence and $361 million of total debt gross of issuance fees compared to $18.4 million of cash equivalence and $352.2 million of total debt gross of issuance fees at December 31st, 2018.

Moving to our financial outlook on slide 11, we remain on track to achieve our previously communicated 2019 financial guidance as described in the last earnings call. To reiterate, we still expect operating revenues in 2019 to range between $420 million to $460 million compared to revenue pro forma for acquisitions of $389 million in 2018, an increase of 8% to 18%. Adjusted EBITDA in 2019 remains consistent with our previously provided guidance range of $105 million to $115 million compared to $91 million in 2018, an increase of 15% to 26%.

Capital expenditures in 2019 are still expected to be in the range be $55 million to $60 million compared to $25 million in 2018. Additionally, approximately 55% of the anticipated capital expenditures for 2019 is related to the initial waste disposal buildouts, which are accretive to EBITDA margins and generate quick payback periods typically of about a year.

Free cash flow conversion defined as adjusted of less total capital expenditures, excluding the one-time investment in the waste disposal facilities in 2019 is still expected to be between 70% to 80% compared to 81% in 2018.

Now, let's turn to slide 12 to quickly review a few recent developments. On April 26th, 2019, we closed on the previously announced acquisition of the assets of business of OIT, Inc., a provider of thermal treatment non-hazardous petroleum contaminant soils absorbed in pads and sludges and the treatment PFAS.

The acquisition of OIT further strengthens our operations in Alaska providing a differentiated service offering and the opportunities to grow adjusted EBITDA over the next few years due to the high demand for PFAS treatment. I'd also like to note that the financial contributions for the OIT acquisition were included in the previously communicated outlook for 2019.

Additionally, on May 1st, we received a commitment from HSBC to provide an incremental revolving credit commitment of $15 million under the existing facility. If consummated, this would increase our aggregate revolving credit commitment to $60 million. Once closed, this increase available can aid our ability to successfully execute on our capital allocation issues and drive our long-term strategic growth plans forward.

Before handing the call back to Chris, I'd like to quickly mention that we are constantly evaluating our capital allocation strategy to determine the best use of capital to drive long-term shareholder value. Currently, we view the best use of our capital is on continued buildout of our waste disposal facilities in the Permian Basin as it drives strong returns on invested capital, generating relatively quick payback periods and once operational are quickly accretive to adjusted EBITDA and free cash flow.

With that, I'll turn it back to Chris.

Chris Swinbank -- President and Chief Executive Officer

Thanks, Joe. Turning to slide 13, I would now like to provide a few updates on our strategic priorities for the remainder of 2019. First is the buildout of new landfill and wastewater disposal facilities. We are on track to begin operating the Reagan and Pecos County waste disposal landfills in the second quarter of 2019. These facilities combined with our facility in Karnes County will allow us to continue to execute on our waste disposal expansion strategy in our core markets and continue to grow our share.

We also still expect to receive the permit for our Andrews County facility in the second quarter of 2019. As we have been focusing our efforts on the successful opening and ramp in operations of the Reagan and Pecos County facilities, we now expect to begin construction on the Andrews facility in late 2019 or early 2020 with operations commencing in Q2 of 2020.

Drilling activity in the Permian Basin remains robust and our outlook on the growth potential of the area as well as the strong unit economics that our waste disposal facilities can achieve remains unchanged. We believe the investments being made in waste disposal expansion will drive strong returns on invested capital, generate relatively rapid payback periods, and will quickly be accretive to adjusted EBITDA margins as evidenced by the outstanding results for our Karnes County facility.

In addition, our acquisition of Quail Run back in October helps us expand into new waste streams, which are outside of our existing waste disposal facilities and offer new avenues of growth opportunities at very attractive margins. Secondly, within our standby segment, we have been extremely successful with our growth strategy in Mexico to date. In late April, we signed an additional retainer contract, which brings the total amount of contracts won to seven, a 100%-win rate on contracts bid to date.

As one of the only global retainer-based emergency response providers capable of meeting the needs of the larger international energy customers, we believe that we are uniquely positioned to continue to expand our market-leading position in the region. As we still anticipate securing additional contracts throughout the year and expect to announce more soon.

Earlier in the call, I covered the progress we made in our national emergency response program in the first quarter with the signing of two additional clients. Additionally, we are looking at further expansion opportunities for this program, including opening an additional 24/7 operations center in our Houston offices to support the growth of the initiative.

We see further room for sustained expansion of the National Emergency Response Program and its ability to efficiently utilize our experience, institutional knowledge, and diversified asset base across a wide range of emergency response services. We also continue to execute our growth strategy and core markets, which was evident in the strong organic growth across all our segments in the first quarter, specifically within the international segment, our continued focus on land base service offerings, which was bolstered with our acquisition of Clean Line drove increased higher margin revenue in the quarter.

Finally, we will seek to drive margin gains through an increased focus on higher margin services, improving operational efficiencies and excellence and further driving synergies through our recent acquisitions. On top of this, we anticipate that our end markets will remain robust throughout 2019 and we will capitalize on any incremental growth or margin-enhancing opportunities.

After our first full quarter as a public company, I am encouraged by our company's progress on driving our strategic growth plan forward and implementing operational improvements to make us a more efficient and nimble organization. I am confident that continued execution and progress under our initiatives have the power to drive strong organic revenue and adjusted EBITDA growth.

With that, I'd now like to turn the call back over to the operator for Q&A before my closing remarks. Operator?

Questions and Answers:

Operator

Thank you, sir. We will now begin the question and answer session. To ask a question, you may press * then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press * then 2. At this time, we will pause momentarily to assemble our roster.

Our first question comes from Sean Kennedy with Nomura. Please go ahead.

Sean Kennedy -- Nomura -- Analyst

Good afternoon, everyone. I had a question regarding Sprint. It seems by my math if you take the Quail Run contribution as about $2.5 million, organic growth was approximately 12%, which is a significant step down from last quarter. So, I was wondering if you could comment on the specific drivers of that growth and then the organic growth for the year with the two landfills coming online in Q2.

Joe Peterson -- Chief Financial Officer

This is Joe. I'll let Chris talk about that as well. We still remain confident in the growth contributions from the two new landfills. Once again, they'll coming online on schedule in Q2. In our previously provided information, we've estimated that would be about $15 million of EBITDA contribution in the year. So, that's the contribution to the new facilities.

Obviously, Quail Run is contributing from an acquisition perspective incrementally and the rest of the business is growing as anticipated from organic growth perspective, not growing quite at the rate of the new landfills of Quail Run because they are obviously adding brand new incremental organic growth. But I don't know, Chris, if you wanted to say anything specific about services or the base business.

Chris Swinbank -- President and Chief Executive Officer

Just to go back to our disposal functionality, Quail Run has been a great acquisition. We've got some new facilities coming online there in areas that are just the right spot to be. We continue to be aspirational about our landfills in the Permian Basin. We also think those are in the right place to be. We're aspirational about the rest of the business. So, the services segment continues to grow, albeit at a slower pace than the disposal functionality, but it's well worth being in it and we're happy to have it.

Sean Kennedy -- Nomura -- Analyst

Got it. Thanks. Then a quick follow-up -- you commented that the environment is still robust in the Permian, but is there anything incremental from this quarter versus last year, is there any difference in terms of the current climate for waste demand?

Chris Swinbank -- President and Chief Executive Officer

I think really, what drives waste demand is the amount of drilling permits that have been filed. It's not really rig count. It's how many permitted drill holes are they going to do. So, we've seen no downturn in the first quarter of 2019 as far as activity that's coming. We're excited about it.

Sean Kennedy -- Nomura -- Analyst

Great. Thanks, guys. Good luck with the rest of the year.

Operator

Again, if you have a question, please press * then 1. Our next question comes from Brian Butler with Stifel. Please go ahead.

Brian Butler -- Stifel Financial Corp. -- Analyst

The first one starting out -- when you think about reiterating the previous 2019 guidance, was that assuming the two new national emergency response customers were going to added and that the new Mexico contract win was going to occur or is that kind of pushing you above the midpoint with those wins?

Joe Peterson -- Chief Financial Officer

We assumed that we would get some traction on those initiatives, but obviously, it's very hard to plan these exact contributions. So, I think they indirectly include some contribution, but I would say to the extent that we continue to move forward the way we have, there potentially could be some opportunity, but it is too early to tell.

Brian Butler -- Stifel Financial Corp. -- Analyst

So, you're still within the range but you're incrementally moving toward the higher end. Is that a fair way to look at it?

Joe Peterson -- Chief Financial Officer

Well, I wouldn't say the higher end. I would say we're feeling comfortable about our execution so far.

Brian Butler -- Stifel Financial Corp. -- Analyst

Fair enough. How about your visibility on the pipeline of bids for the Mexico type business? Can you give a little color of what you're seeing now and how that's shaping up?

Chris Swinbank -- President and Chief Executive Officer

Well, activity in the Southern Gulf continues to ramp up. We've got quite a few bids in the pipeline. We don't have any reason to think that we wouldn't be as successful in winning those as we have been on the first seven. That activity has not receded. In fact, it's increased.

Joe Peterson -- Chief Financial Officer

Just to add to what Chris said, we're executing as we intended at the beginning of the year. So, things are moving along as planned. With some of the Mexico contracts, once you win them, sometimes there is a little bit of uncertainty as to when they start to drill and come online. So, there could be some lumpiness up front.

It's not as if you win the contract and the next month you're generating consistent, visible revenue streams. There's a little bit of lumpiness in that. But you can't control that. What we can control is going out there and winning each and every day. So far, we're comfortable and happy with our track record.

Brian Butler -- Stifel Financial Corp. -- Analyst

Okay. You also talked about the potential to open a new call center in your headquarters. Can you give a little color on what would be the typical cost for something like that and what would be the contribution if you think about that growth of that? How much does it move the needle?

Chris Swinbank -- President and Chief Executive Officer

We estimate it's going to cost a couple hundred thousand dollars to get that implemented. The facility existing itself does not actually add incremental revenue. It just aids us in our ability to go out and sell the value proposition to the customer, which is National ER. It's infrastructure that you have to have before you can go confidently sell the ability to do that.

Joe Peterson -- Chief Financial Officer

To Chris' point, I think that the National ER could be something that not just contributes later this year as we're building infrastructure and adding new customers but obviously gives us more of a pathway going forward for years to come in terms of how we can systematically and differentiate ourselves and grow the business at pretty decent margins going forward. We're happy about it not just this year, but we're happy about what it can become and how we differentiate ourselves in the space for many years to come. We think it's an investment worth making.

Brian Butler -- Stifel Financial Corp. -- Analyst

Okay. That runs through the domestic ES and that business had margins down in the 3.9%, which was a little bit lower than we were looking for, but how do we think about that going forward in the domestic ES with margin? Does it come back to a higher level? I know this is a slower period, but just kind of walk through the seasonality, I guess, through the rest of 2019.

Joe Peterson -- Chief Financial Officer

Well, Q1, as you mentioned, it is slow and that's predominately due to our domestic ES operations in Alaska. Alaska, quite frankly, makes the vast majority of their money when it's a little bit warmer. They basically shut down and sometimes they're able to get a unique project or two that holds them over the winter months and sometimes they don't. This year, they did not. In addition, obviously, in New York and New England, this is slower time for those reasons as well. You obviously have less seasonality impact in the Gulf and California.

But what I say is from National ER, back to the point about National ER, that's an initiative that's really just ramping up now. There are no real significant incremental contributions from our National ER program and our pricing other than the stuff we have been doing for the last few years for ourselves. The differentiated point here is that we're just not going to do national ER events for our customers. We are now becoming the call center and the third-party provider of that service for other companies.

The margins on that business will be higher, substantially higher than the margins we would get at a normal remediation job, waste collection job or industrial service type of job. It's a different level of margin because we're providing a different level of differentiated service and a different level of expertise. So, it has the potential to significantly change what we do and how we do it in the domestic environmental services business, which is the reason obviously we are pursuing it.

Brian Butler -- Stifel Financial Corp. -- Analyst

Okay. And then this is the last one for me -- when you think about the subcontractor additional cost that kind of moves the margins, how do we think about the size of that swing quarter to quarter? Is that 200 or 300 basis points potentially depending upon how much you need them? I'm just trying to put a box around how big it can be.

Joe Peterson -- Chief Financial Officer

Obviously, it's sometimes difficult to control or predict. An example could be if an event happens in, say, the Northeast or Gulf with our acquisition of SWS, first and foremost, we always respond with our own resources if we can. Obviously, we control our own resources and the margins are a little bit different than if we have to tap into a subcontractor. So, first and foremost, it's a matter of where the event happens. If it happens in the Midwest, we have less physical presence there than would happen on the coasts. So, where the event happens and sometimes the nature of the event can happen.

It really matters what segment we're talking about, right? International, it doesn't really impact. Sprint is not a factor. We're not talking about that. First and foremost, it's in the standby business. We have to respond to an event with some contractors, it can obviously impact the 20% of its revenue that is ER-related. Once again, 80% of standby revenue is this retainer contract that is very recurring, very, very visible.

In domestic ES, yes, it can also have an impact there if we have to respond with third-party contractors, it can move the needle. If we think about margins overall for the quarter, there were three primaries and issues that impacted margins which we don't expect the same level to go forward into Q2 or Q3.

First, we kind of touched upon a little bit in terms of mix. So, I would estimate roughly $3 million of operating profit was impacted due to mix, specifically $3 million or so in domestic ES, specifically in Southern California or Alaska. Southern California had a very large job in Q1 of 2018, unusually high margins.

So, that was a mix issue year over year. Also, Alaska, last year, they were able to get some unique projects to tide them over the winter months to better utilize their equipment and people because we know we're going to use them as soon as April, May, and June comes around because that's when a market leader in Alaska really gets a lot of traction.

In addition, there was about $1 million of mix impact in standby. That was what I mentioned before, where eon one side, it's great because we had higher ER activity and higher Revenue because of that, but obviously, that revenue, if it's ER related, it's not going to be in the same 50%+ margins as you'd get if it was retainer revenue. So, you've got to remember that fluctuates and really can change the needle.

So, about $3 million, I'd say, year over year was probably due to mix. It was an additional roughly $2 million, I would say, due to public company costs and other one-time non-operational charges. Obviously, we were not a public company in Q1 of last year. We are a public company now in terms of investor relations, in terms of audit fees, in terms of some infrastructure. There are some costs related to that, rough $1 million-ish was incurred. In addition, we talked about some non-operational charges.

One example of that is as we were working as a public company trying to realign and change our accounting policy -- so, you'll notice on the balance sheet there was an increase of roughly $1 million for bad debt. This is moving from more of a kind of internal expertise opinion as to when we will collect something or when we won't.

We basically have really good strong collection histories. Our customers usually always pay. Sometimes when you're dealing with governments and municipalities, they may not pay as quickly as you'd like them to, but they usually pay. In partnering with Grant Thornton, we are trying to move and evolve to more of a systematic or formulaic approach to bad debt. So, if something is outstanding, say, 180 days or 360 days, regardless, X-amount is reserved. So, as a result of moving to that type of methodology, we incurred a charge of $1 million in Q1 that did not necessarily relate to the revenues incurred in Q1.

Lastly, Chris mentioned and I mentioned a little bit of start-up costs -- in addition to the National ER, there are some start-up costs we're doing right now in Southern California getting ready hiring three to four dedicated crews and training them up. These are non-capitalized costs related to a very large remediation job that we're about to kick off in Q2 in Southern California, which we believe could last a year or two in terms of its duration and to a lesser extent, some of the initial ramp up costs in March, mid-March related to the Houston Ship Channel fire that Chris had mentioned as well.

Once again, we got maybe about one week's worth of contribution from that initiative in Q1 at the very end of March. It is really a Q2 event all through April and we hopefully should be wrapping that large job up let's say in the middle of May. So, those three things really drove the Q1 margin deterioration.

Obviously, I would not expect that some of these mix issues continued in Q2 and I still feel comfortable with what we previously communicated, which was overall, our corporate non-operating segment would increase anywhere from $3 million to $4 million to cover the incremental public company costs and we still believe that is the right number.

Brian Butler -- Stifel Financial Corp. -- Analyst

Great. Very helpful color. Thank you very much for taking my questions.

Operator

As a reminder, if you have a question, please press * then 1. At this time, this concludes our question and answer session. I would now like to turn the call back over to Mr. Swinbank for closing remarks.

Chris Swinbank -- President and Chief Executive Officer

Thank you, Brandon. We'd like to thank everyone for listening to today's call and we look forward to speaking with you when we report our second quarter results. Thanks again for joining us.

Operator

Ladies and gentlemen, this does conclude today's teleconference, you may disconnect your lines at this time. Thank you for your participation.

Duration: 35 minutes

Call participants:

Jared Filippone -- External Director of Investor Relations 

Chris Swinbank -- President and Chief Executive Officer

Joe Peterson -- Chief Financial Officer

Sean Kennedy -- Nomura -- Analyst

Brian Butler -- Stifel Financial Corp. -- Analyst

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