The following is a summary of the Knife River Corporation (KNF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Knife River posted record first-quarter revenue in Q1 2024 but reported a larger adjusted EBITDA loss ($17.7 million) compared to prior year period due to increased pre-construction expenses and separation costs.

• Contracting services contributed $423 million to the quarterly backlog, a 66% increase YoY.

• Aggregates volumes declined 13% while asphalt volumes surged due to seasonal factors and specific projects.

• The firm's 2024 financial outlook is reaffirmed with consolidated revenue estimates between $2.75 billion to $2.95 billion, and adjusted EBITDA between $425 million to $475 million.

• The first quarter accounted for about 12% of total revenue, with variances mainly from product mix adjustments.

Business Progress:

• The company advanced the implementation of their EDGE plan, introducing new analytic tools, sales team trainings, and efficiency-focused improvement teams.

• Investments for the quarter included a greenfield ready-mix operation in Iowa, a liquid asphalt expansion in South Dakota, and multiple plant upgrades to lower production costs.

• The corporation acquired a small ready-mix operation in South Dakota and continues to focus on growth and acquisition opportunities.

• As part of commercial excellence initiative, the company gradually implements dynamic pricing. Anticipated price increases for the year are in the mid to high single-digit range.

• Preparations are underway for a Q2 uptick, backed by well-trained crews, adequate inventory, and beneficial pricing momentum.

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