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#So we already do several refineries on the West Coast for the customer.
And we were able to leverage that relationship.
It is a very good customer for us.
We are extremely pleased to be in the refinery, and so far all the feedback that we have gotten from the customer and from our team is that the transition which occurred in June has gone extremely well.
Obviously, $17 million is an annualized number and we (multiple speakers).
Right.
We will probably get the substantial amount of it this year.
But it is in the range of $14 million, $15 million, probably.
Correct.
So let's just walk through maybe a few more details that we have talked about earlier.
Remember that we control the construction schedule.
We recognize revenue as we produce product and that the contract says we need to be completed by the end of the first quarter in 2018.
What we anticipate is that we will start up the plant at the beginning of Q4.
Obviously, it will be a ramp-up in terms of production during the quarter, but we would expect that we would produce the entire project over three to five quarters.
And a lot of that will depend on how quickly we ramp up production and what kind of production rates we ultimately achieve with the plant.
But what we are projecting is that we will complete the production over three to five quarters starting in Q4 of this year.
I would (multiple speakers).
We believe there is the potential for some follow-on work with this project over the next couple of years.
It is much smaller in terms of significance and scope.
We don't see another large Appomattox type project on this horizon at this time.
We certainly know of several other customers that are watching this project very carefully, and my expectation is that we will hear more out of those as this project progresses.
That is a good question, <UNK>.
I don't have that off the top of my head.
I can certainly follow up with you on that.
We made some write-downs at the end of last year, and that number is down.
It will be in the 10-Q as well, but I will certainly follow up with you on that.
Well, a couple questions there.
I think the first thing is, your assessment of the size of Corrpro Canada is about right.
In terms of the overall business, it has been a very good business for us over the last couple of years in terms of revenue and profitability.
We saw the ---+ what we have seen since the fires, which I mentioned, is just that the work releases have been delayed.
We haven't heard of any cancellations, but we have seen a delay, and as we looked out over the second half of the year, we decided to be conservative and we don't expect any cancellations.
We are sitting on a nice backlog for that business, but as we looked at it, we think those delays will move some of that backlog into 2015 ---+ 2017 that we originally had forecasted to be 2016 work for us.
We do a lot of work up there for some of the major transmission companies.
We also doing a lot of work for smaller companies.
So yes, the delays have been sort of across the board and, to be honest with you, I can't really explain exactly why they are delayed.
I would have thought by now that we would be back at work and going full bore to actually make up for some of the time we lost during the month of May.
But that certainly hasn't occurred.
So we have a very ---+ we very successfully entered the [bi-layer] insulation market in the Gulf of Mexico.
We have ---+ the plant is positioned really well for FBE coating and for doing all types of insulation, not just ultradeep insulation but all insulation.
We certainly have sized that facility down there to break even at much lower revenue maybe than we experienced five or six years ago.
Obviously, this year has been challenging because we know we have a great big project coming, and we have had to size the organization to be able to execute that project.
Going forward, we won't see the kind of revenue that we are going to see in 2017, I don't think, in 2018.
But we believe we can size the plant appropriately for the market and be successful with the work that is in the Gulf Coast.
We don't have anything to believe that that would happen.
And, remember, this is a new plant.
It certainly is in Shell's best interest to make sure that we are done at the end of Q1 in 2018 per their schedule.
This is a huge project.
We haven't seen anything that makes us believe that they are going to change their schedule or their arrangement with us.
And what that leaves us with is that we really have the opportunity to manage the schedule the way we think is most effective.
Certainly, we don't have any plans to push up against the final deadline for the contract, which is why we are really targeting to finish the production over three to five quarters.
It is more of a strategic review of where we expect to take the Company and what we think.
There will be some metrics associated with what we think we can achieve over the long run.
So it is a combination of both.
We are going to be doing that over the next months.
I think I mentioned it on the last quarterly call that we are in the process of developing the databases and the way we transmit information from the field into the database and then from our database into our customers database.
That work is ongoing.
It is going well.
I think what I said on the Q1 call was that we would expect it to be commercial and start introducing that product on a commercial basis going into 2017.
We are still on track to do that.
We did a project review a couple of weeks ago, and I am very excited about what we saw.
It is really going to be a nice step forward for our cathodic protection services business.
We have had ---+ I think what you asked is sort of the state of the wastewater CIPP market.
I'm sorry.
I didn't catch all your questions.
We have seen growth in the overall market this year.
We had a huge Q1 last year, and I think I mentioned on the call that we either had in February or in April that what we expect to see this year was that we wouldn't replicate the orders earlier in the year, but we would have better orders in the second half.
And that is certainly what we have seen.
We had a phenomenal win ---+ number of wins in dollar value of wins in Q2.
We have seen the market opportunity grow this year versus last year.
And as we look at the big table going into the second half of the year, it looks strong to us.
So overall, I think we are very pleased with the state of that market and the size of the bid table.
Yes.
It runs about the same.
We try to manage our share pretty carefully.
We obviously want to win more than our fair share, but we also have to be cognizant of margins in that.
We manage that pretty closely, but we have certainly won our share of work this year.
Well, I think what happened was ---+ really, the gross margins for Fyfe and Underground Solutions are sort of in the same range, but obviously we added SG&A when we added Underground Solutions.
And what happened it is the overall gross margin is probably up a little bit with the addition of Underground Solutions.
But we did add SG&A, and I think we look at operating margin as down just slightly.
We have entered our primary earnings season with the pieces in place for a much improved earnings performance in H2 and an opportunity to build positive momentum as we move into 2017.
We are very excited about the way the business is positioned for organic growth going forward and are looking forward to our calls over the next several quarters.
Thank you for joining us today.
We appreciate it.
Thank you.
