PWR
#<UNK>, we ---+ and it's a good question.
We will continue ---+ we have and will continue to make adjustments, yes, if transmission doesn't materialize in the second half of the year.
We expect margins to continue over time to get back to the 10% range.
Canada is a big issue right now, Canada is challenged.
We do have less big projects going on right now, especially compared to the first half of last year.
The mix of smaller projects to larger projects is certainly back to levels that we had in 2010.
With that said, we have significant amount of transmission in backlog that we will need to execute on in 2017.
We have to maintain some of our core capabilities, and not be short-sighted.
We've got that large project, the West Mac project that we've got to execute on; the concession we won in Alberta.
Again, we're very early still on the [Navpor] job, and we expect other awards to come out that will be sizable in the coming years.
I don't want to be shortsighted and cut all of our capabilities; but we do have a sense of urgency to return margins to historical levels, and we will continue to make necessary adjustments.
We have and will continue to make necessary adjustments to improve margins over time.
Yes, thank you.
Good morning.
Well, I don't think there's any one answer to that.
I think we book backlog every day.
We've taken that into account when we evaluate our uncommitted business, and everything that we do.
The day-to-day book and burn work, and the large-project environment.
I think one of the key things that I mentioned today is that on your more volatile projects where backlog is ---+ you have the less visibility on backlog or your larger projects ---+ we've assumed very little uncommitted electric transmission large projects at the mid-point of our guidance, and we're comfortable that we have on the mainline guidance at the mid-point, that we have they work booked, or either in 12-month backlog recently booked in the first quarter, or that we're in final negotiations on projects, and that's your mid-point.
I think the other work is really book-and-burn work in areas of our business that have been accelerating over the last several years, and we don't expect any change in the sub-transmission business, the electric distribution, and our LDC business, all of that equates to probably half of our consolidated revenues.
That business continues to accelerate, and that's your day-to-day work that you probably have less committed, but you book that every day.
That momentum continues, as well.
Yes, my earlier commentary I think was based upon the fact that we do have such a seasonal ramp, we do think we'll have a draw of capital out of the business to support that growth.
I think that you'll see the levels of debt continue to increase on average balances between first quarter into the second, into the third, as we set up to fund the working capital that would be required to maintain that growth.
Fourth quarter's going to be highly dependent.
It's normal seasonality since the fourth quarter would roll down some, and would therefore be a strong cash-flow period, much like you saw in the fourth quarter of this year.
But the timing of when that can happen is very difficult to predict.
I do believe that ultimately we will have free cash flow, but I think you will see most of it being very back-end loaded and highly seasonality dependent.
Yes.
I think we will continue to book backlog.
Takeaway capacity is needed, whether it's oil or natural gas.
There's some markets that you hear that they don't need pipeline.
I can certainly understand that in some of your liquid play shales.
But we have customers that have a need to move liquids out of regions to either refining centers or load centers.
In this environment, it actually reduces the cost, because they cannot move enough product by pipe, it's stranded.
They're having to move it by rail.
Rail looks really costly right now in this environment.
Both liquid ---+ there is a need for liquid and natural gas takeaway capacity, and you will continue to see backlog grow in those areas.
In certain regions, you will see pipeline capacity grow.
Or the need for pipeline capacity ---+ like from the Canadian oil sands.
There is a desperate need to build takeaway capacity by our customers.
All right, well thank you.
I would like to thank you all for participating in our fourth quarter 2015 conference call.
We appreciate your questions and your ongoing interest in Quanta Services.
Thank you, and this concludes our call for today.
