Living hand-to-mouth on their own output: the company is currently consuming what it makes as fast as it makes it
The model's full reasoning — Q2 2018 call → NOWe need to determine if management describes that what the company produces or provides is being consumed as fast as it becomes available, i.e., no cushion, everything goes out the door. Look for statements about inventory, capacity fully committed, etc. In the transcript, David King discusses various segments. He mentions "our power job delivering strong results, our engineering work picking up, and our gas and utility electric work continuing to show steady growth." He talks about pipeline work down due to ACP delay. He mentions "the newly acquired Willbros businesses are running as planned and the electrical T&D Group saw good margins for the month of June." He says "the addition of this Group has pushed our MSA backlog to its highest ever level at $1.1 billion." That's backlog, not consumption. He talks about "opportunities to grow revenue at the acquired business units." He mentions "we are very excited about the opportunity to grow revenue at the acquired business units." Not about capacity being fully consumed. He mentions "our Heavy Civil management team led by Mark Buchanan is showing improved performance on newly awarded work" but also "we are still cleaning up some older projects" and "we terminated our work on that project." So not a picture of everything being consumed. He mentions "Jonas Beatty’s Primoris I&M Group, the other half of the Civil segment has been slowed to gain additional work after they have come off the large petrochemical project." So they have capacity to spare. He mentions "The timing of the Gulf Coast project is also affecting our Primoris Industrial Constructors Group... While work has ramped up on the MEG plant, we are still running underutilized in this Group." So underutilized, meaning they have capacity. He mentions "Our renewables teams continue to work at the largest solar installation project to date in Texas." Not about consumption. He mentions "Tim Healy’s ARB Industrial team has seen excellent performance to date on their large power job" but not about capacity. He mentions "We added the Canadian operations from the Willbros acquisition into this segment and for the month of June, Jeremy Kinch and his team made a positive contribution to the gross margin." Not about consumption. He mentions "Both of our engineering groups also had good second quarter results." Not about consumption.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| BRBR | BellRing Brands, Inc. | Q4 2023 | 2023-11-21 | B+ |
| PRPH | ProPhase Labs, Inc. | Q1 2023 | 2023-05-11 | F |
| TACT | TransAct Technologies Incorporated | Q4 2022 | 2023-03-08 | A |
| PI | Impinj, Inc. | Q4 2022 | 2023-02-08 | B+ |
| JBHT | J.B. Hunt Transport Services, Inc. | Q2 2022 | 2022-07-19 | C+ |
| FLUX | Flux Power Holdings, Inc. | Q2 2022 | 2022-02-10 | D |
| VVV | Valvoline Inc. | Q1 2022 | 2022-02-09 | C+ |
| GTES | Gates Industrial Corporation plc | Q4 2021 | 2022-02-07 | C+ |
| EXP | Eagle Materials Inc. | Q3 2022 | 2022-01-27 | B |
| GFS | GLOBALFOUNDRIES Inc. | Q3 2021 | 2021-11-30 | A |
| SXC | SunCoke Energy, Inc. | Q3 2021 | 2021-11-01 | A |
| LOPE | Grand Canyon Education, Inc. | Q2 2021 | 2021-08-08 | C |
| WES | Western Midstream Partners, LP | Q3 2018 | 2018-10-31 | D |
| IRT | Independence Realty Trust, Inc. | Q2 2018 | 2018-08-02 | B |
| SATS | EchoStar Corporation | Q1 2018 | 2018-05-10 | C+ |
| RACE | Ferrari N.V. | Q3 2017 | 2017-11-02 | C+ |
| PLAB | Photronics, Inc. | Q2 2017 | 2017-05-17 | C+ |
BRBR · Q4 2023 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? That is, operating without meaningful cushion, output moves stra...
PRPH · Q1 2023 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? That is, operating without meaningful cushion, output moves stra...
TACT · Q4 2022 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? Operating without meaningful cushion, output moves straight out ...