Question · Q4 2019
Steven from ABL Investments asked about the sustainability of high gross margins, the expected margins on new MSA work, the reasons for the high tax rate, potential large contract bids, the impact of the Coronavirus, and the possibility of a share buyback or tender offer.
Answer
SVP and CFO Stephen Weary stated the gross margin target is 16% to 19%, while Chairman, President and CEO John Sottile reiterated that margins will vary quarterly due to project timing and startup costs. Sottile and Weary attributed the high tax rate to non-deductible expenses like per diem payments. Sottile confirmed the company is bidding on substantial new contracts, has implemented Coronavirus contingency plans, and is actively considering a share buyback as a use of capital.