Good day ladies and gentlemen, and welcome to the Matrix Service Company Conference Call to discuss results for the Third Quarter ended March 31, 2014. At this time all participants are in a listen-only mode. Later we will conduct the question and answer session and instruction will follow at that time. (Operator Instructions). As a reminder this conference is being recorded. I would now like to introduce your host for today's conference Mr. Kevin Cavanah. Sir you may begin.

Thank you. I would now like to take a moment to read the following: various remarks that the company may make about future expectations, plans and prospects for Matrix Service Company constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors, including those discussed in our Annual Report on Form 10-K for our fiscal year ended June 30, 2013, and in subsequent filings made by the company with the SEC. To the extent the company utilizes non-GAAP measures, reconciliations will be provided in various press releases and on the company's website. I will now turn the call over to John Hewitt, President and CEO of Matrix Service Company.

Thank you, Kevin. Good morning, everyone. On quick logistics note we had a power outage this morning at our corporate headquarters in Tulsa. So Kevin and I and the team are calling from our fabrication facility in Catoosa. If you have any problem hearing us please let us know and we'll move closer to a phone or try something different. If you need to reach us after the call please send us an email at ir@ matrixservicecompany.com and we'll get back to you. So I would like to thank -- I would thank the employees of Matrix Service Company for a record third quarter of fiscal 2014. This is their dedication and commitment that we continue to make progress on the goals we established in 2012 and our five year strategic plan. We recently brought together our operational team leaders to revisit and refresh this plan which runs through our fiscal 2017. These processes provide a clarity on our objectives and the tremendous market opportunities in front of us. As I mentioned earlier the third quarter of our 2014 fiscal year was a record for the company. We continue to see excellent organic growth opportunities in the business versus our expectations in our initial five year strategic plan. This growth has been significant in the progress towards our objectives has that been a key to the success. We measure ourselves again the peer group's operating performance and set strategic metrics as goals to our performance. It is our vision to be the best of the best and while there is still work to do we have made considerable progress towards this vision. As we outline the tactics details on our strategic plan for each of our segments we will continue to create growth, consistently in our performance and enhance value…

Thanks John. Our third quarter results were very strong we’ve generated record revenues of $381.5 million compared to $226 million in the third quarter of fiscal 2013. That's an increase of $155.5 million which included $64 million from the recently acquired Matrix North American construction. The legacy business growth was $91.5 million or 40.5% as compared to the prior year third quarter. On a segment basis there were strong growth in the storage solutions and industrial segments. Our quarterly net income was $11.4 million and fully diluted EPS of $0.42 both represented record performance. In the third quarter of last year the company produced net income of $6.5 million and fully diluted EPS of $0.25. Consolidated gross profit was $39.9 million in the three months ended March 31, 2014 versus $23.1 million in the three months ended March 31, 2013. The performance of our overall business produced 10.5% consolidated gross margins as compared to 10.2% consolidated gross margins in the third quarter of fiscal 2013. SG&A expenses were $21.1 million in the three months ended March 31, 2014 compared to $14.7 million in the same period last year. The increase was a result of the addition of SG&A cost and amortization expense related to Matrix NAC as well as an increase in incentive accruals recorded in connection with the strong performance of the company and the other cost required to support the growth on our business. SG&A as a percentage of revenue decreased to 5.5% in the third quarter of fiscal 2014 as compared to 6.5% in the same period last year. With regard to segment performance, the storage solutions segment was a major contributor to our overall results with 91.8% revenue growth quarter-over-quarter. Third quarter fiscal 2014 segment revenue increased to a record $181.8 million as compared to the…

Thank you. (Operator Instructions). And our first question comes from Matt Duncan from Stephens Incorporated. Your line is now open.

Good morning guys, congrats on another excellent quarter.

Thank you.

First one I want to start with storage business obviously that’s the strongest part of your business right now. I’m curious how much of the revenue you guys recording there, as this balance of plant work it seems to be adding quite nicely to that segment.

The balance of plant work is a significant driver of that growth. We don’t have a specific number we’re disclosing for each various service we provide by segment but I think it's sufficient to say that it’s a significant driver.

Okay. Kevin, there more of that work in your backlog?

Yeah, it's including there some more balance of plant work associated with the project announced this morning?

Okay. Looking at the -- John you mentioned LNG opportunities in storage it sounds like you don't have anything in backlog as yet but there is pretty active close and bid environment there would you expect to be recording revenue tied LNG in fiscal '15?

We'll try to get that break down a little bit so, if we are talking about LNG exports terminals there are opportunities for us out there some of are large competitors you know have internal of their business have the same skills that we have but there are other large EPC firms that are looking for the services that we can provide. And so there are some opportunities out there that we are looking at that may that would have potential come in the backlog within our organization perhaps in 2015. So it's that piece it you know that we are looking at this there's still a competitive environment you know there is no guarantees and then also the LNG related transportation fields where we are currently doing some feed studies for clients along those lines where transportations also related to ship dealing but there is also other aspects for us where LNG market is some of the older facility needed some upgrades and some inspections and so, those provide a combination of an engineered and technical review services by us as well as construction services perhaps to do some repairs on the share repair. In tank pumps, different parts of the assemblies of the system of these facilities that might be a little bit older.

Okay, that's helpful.

Right. So we are looking at all of those things. I would certainly hope in fiscal 2015 you know that's some pieces of what I just said will start to enter into our backlog.

Okay, great. And last thing I'll hop back in the queue. Kevin on Kvaerner can you give us revenue there this quarter and maybe break that down into your reporting revenue segment for us and then what it do for your earnings in the quarter, how accretive was the deal in the quarter?

Roughly the revenues in the quarter were $64 million. You know from a segment basis the acquisition is primarily in the electrical and industrial segments but we are integrating that business we are not going to breaking out revenues from that acquisition by segments. It's just one the drivers and I think that's important as we try to truly do a good job of integrating of that business and as we have discussed before we said this acquisition is going to accretive in the first year and it was accretive in the first year even with the step up in basis of fixed assets which added to depreciation and even with about a $1 million of amortization of intangible costs. So without it would have contributed a couple of millions to the bottom line.

Do you have the actual amount of EPS that id did add to how much the 42 is from Kvaerner?

There is a disclosure in the 10-Q that says a penny.

Okay.

But without the amortization there is about of $1.6 million of excess amortization of either intangibles or the excess depreciation.

Okay, thank you.

Thank you. And our next question comes from Tahira Afzal from KeyBanc Capital Markets. Your line is open.

Hi, this is [Sunnel] on behalf of Tahira.

Good morning.

Hi, I am good. Thank you and congratulations first of all on an excellent quarter. My first question is regarding the booking clip going forward. Just wanted to ask how sustainable is the booking run-rate going forward?

Well so I want to be clear that you know the $4.4 million that we had in the third quarter was probably I believe that's a record for us booking lines.

Yes.

It was definitely up from our previous couple of quarters. And when we look at the overall prospects in each of the segment we are still doing real good about each of those segment opportunities.

Yeah, so, let's you know we don't guide backlog in the coming quarters, the markets are very strong across all of our segment and it is certain as we talked in these calls before it's possible because the timing of awards for our backlog could up and down from quarter, dependent on when things get awarded. So certainly our goal is to continue to build out backlog and continue that upward trend because that helps to feed the animal as we grow the business, but from quarter-to-quarter the backlog could go down. I would take that, I wouldn't be concerned about that because you got to look at the long term run rate of the backlog growth.

Okay. Got that. And can you provide us color on the segment wise operating margin outlook?

Segment margin operating margin outlook talk about gross margins. So we'll start with storage. They were 10.6% at quarter. Without the charge we talked about, they would have been in a range. So our guidance there hasn't change, we've been talking 11% to 12.5%%, 11% to 13% gross margin expectations storage. The oil, gas and chemical segment was 11.7% and we had a similar range expectation for them so that's as expected. The electrical was a little lower than our normal expectation of 11 to 13 for that segment, there was a different mix of work in the quarter, we didn't have any storm work. We have a lot of reimbursed low risk work. So that's why that margin was a little lower at this quarter and I think last quarter hopefully we'll see that come, rebound a little bit in future. And then on the industrial segment, that was inline with our expectations, we started the year expecting 8% to 10%. I know that segment has exceeded that especially in the second quarter but 8% to 10% is probably the still the normal margin for that segment.

All right. So there is no change in the guidance on the outlook which you have given on segment wise gross profit margins?

No, not as of right now, we are in the middle of updating our strategic plan and finalizing our budget for fiscal '15. So we will be releasing guidance for fiscal '15 in the summer and at that point there is a reason to change the guidance on operating or gross margin for each of the segments we would at that point.

All right. Got it.

I am not -- right now I don't have a reason to change any guidance.

Got it. And this is the last one from my side at plant. And what are the storage tank opportunities you are seeing on the petrochem side?

So however our storage tank opportunities continue to be strong all across our system both on refined products, crude products, specialty vessels and so I can't give you a breakdown on percentages against opportunities that we are looking at, but I would say throughout the customer base and potential uses we see a lot of strength.

Okay. Got it. That's it from me. Thanks for taking my questions.

Welcome.

Thank you. And our next question comes from Tristan Richardson from D.A. Davidson. Your line is now open. Tristan Richardson - D.A. Davidson & Co.: Hi. Good morning guys.

Good morning Tristan. Tristan Richardson - D.A. Davidson & Co.: Just a quick one, Kevin can you call out what the incremental write down on the tank job was this quarter, I think you said it was $4.4 million last quarter?

I am sorry it's 1.4 million in the quarter. Tristan Richardson - D.A. Davidson & Co.: 1.4 okay.

Yeah. Tristan Richardson - D.A. Davidson & Co.: Thank you. And then the time left or sort of the schedule left on that project?

So we are going to be into that project through the balance of this calendar year. So I will tell you that we have done a lot of things with management and equipment changes and procedure changes and with that we are starting to, we are feeling very comfortable about where the project is headed. And at this time we should be substantially complete by the end of this calendar year. Tristan Richardson - D.A. Davidson & Co.: Okay, Thanks John. And then I guess when you talk about some of the prior opportunities out there and you talked about some of the marine transportation in the big LNG exports and some of the upgrades to older terminals. I am curious sort of where do you see Matrix's sweet spot there, I mean you've talked before how you don't expect to Matrix ever be a turnkey EPC on a multi-billion dollar export project. And so I guess I am curious sort of what is the size that you think you're most competitive been in terms of some of those trial projects out there.

So first of all forever is a long time so that they will never be that we are trying to be true for the next five years. So in your career may be not mine we’ll be that guy. But anyway we are it's probably less about the dollar bag is then it is about the work system into the project. So if you take the large export terminals where our competitors like CB&I or Bechtel have the internal tank confidence. And then you take like somebody had some other contractors out there they don’t have that skill set so there are big company they can handle our multibillion dollar project but they need the engineering and construction confidence around the storage of Cryogenic liquids. So those are opportunities for us where we would feel the coming of power than a team and attack those jobs. And those projects dependent on the number of tanks could be 100 million to 250mn type projects for us that we would take a part up. So all those big jobs is less about the size and it's more about who do you team with and the ability of that team to be able to win those projects. On some of the transportation fuels those projects are probably could be in the $25 million to $100 million type range project those are certainly well within our bread basket of projects that we could do on an EPC basis. And I would say I like our chances of competing against the big guys on any of those projects because I think we can be much more efficient and competitive to win those projects. And now would go into these smaller repair type projects and upgrade projects on existing LNG facilities they might be those size projects could be in the $5 million to $25 million range. And those for sure would put us into a spot where we bring in the engineering expertise we are bringing the construction capabilities, and so very small projects would make us even more competitive against the big guys, and most smaller contractors that may be the size would scare them wouldn't have the skill sets to bring to that kind of a project. Tristan Richardson - D.A. Davidson & Co.: And just a follow up at that, John when you look at that the market for LNG right now, do you see this is sort of the next big wave of spending bore MTRX in terms a new cycle starting up?

Well I think as we talked before I think that the whole specially vessel market, the storage processing inherent in Natural Gas liquids, gas’s transportation fuels , LNG the exportation of propane, and ethane, methane and butane. I think we are in the very early innings of the baseball game in that market. In our view there is a lot more work to do there across North America and then we think we are in a really good position now to really ride that capital spending. Tristan Richardson - D.A. Davidson & Co.: Okay. Thank you guys very much.

Thank you.

Thank you. And our next question comes from Mike Harrison from First Analysis. Your line is now open. Michael J. Harrison – First Analysis: Hi good morning nice quarter. Michael J. Harrison – First Analysis: If I could just could take you back on the last question there. Is that really the new guys talk about opportunities in upstream oil and gas? Are those the kind of projects you are looking at or can you give us some other examples of what the opportunities are there?

Yeah that’s an area of strategic growth cross we’d like to stop walking away from what we are doing in more the mid-stream activities downstream but we would like to get more of our portfolio and upstream whether it's in oil or it's in gas. And so we are not getting get at the well head where we know as site fracing and drilling rigs and that sort of things but gas compression and gas processing oil pumping stations those types of capital spend and projects throughout the system. We think there is continues to be a lot of opportunities like there for us that we are able to bring many cases both the not only just to see confidence but also the engineering. Michael J. Harrison – First Analysis: And is that something that you guys can go after largely with existing resources or is it going to require a significant amount of investment?

Yes. Michael J. Harrison – First Analysis: Little.

That will be at enough skills to do that but we are also you know and have in frankly you know actively looking you know small regional acquisition opportunities that will help to accelerate on move into that market. And you know in some cases for our ability to build the hand of what we see is the work load available to us that there may be some onesy, twosy people that we would add into our existing engineering structure to continue to help to provide that service. So, I don't we don't you know don't see it as a huge capital investment but there will some good news and some opportunity there maybe for some acquisition for us. Michael J. Harrison – First Analysis: Interesting and then looking at the storage business. Can you give us sense geographically of where the strength was you know maybe disaggregate a little bit what Cushing look like versus Gulf Coast versus Canada versus other areas?

So we are working in a lot of areas. I’d say one of the things that was very strong in this quarter and frankly in the second quarter was Cushing and that was on the balance of plant work. So, we have very large fairly large project that we were schedule intensive for one of our key clients that we stepped into and near incompletion now and so that drove you know a lot of those revenues in this quarter in past we are still very, very busy of the one stream in Canada on several different project opportunities we are busy in mid-West and Wisconsin and Illinois area not only tanks but on terminal related projects. We have projects going on down in Houston Ship channel area, inner Louisiana so, we are working in a lot of different area but one of the big drivers you know like I said at least this quarter and the past was a fairly sizeable master plan opportunity that worked on in Cushing, Michael J. Harrison – First Analysis: All right. And then Kevin you mentioned performance incentive approvals contributed to the higher SG&A in the third quarter. Do you think we're fully accrued at this point or given the performance here could we see some further catch-up in Q4?

Yeah, I hope. So we have a an incentive plan that which covers the full year obviously we are accruing throughout the year based the percentage we think the ultimate's pay-outs going to be based upon all the various factors that go into that incentive including you know not just financial performance or safety and so you know I think we are appropriately accretive March 31 there will be [inaudible] in the fourth quarter and like John said I hope they are large. But you know it's not catch-up accrual it's just as the company has outperformed our expectations and have their higher operating are you know got to what reward the people have generated that their performance. Michael J. Harrison – First Analysis: Understood, thank you very much.

Thank you. (Operator Instructions). And our next question Matt Duncan from Stephens Incorporated. Your line is now open.

Hey, guys. Just want to look at the Trans Canada alliance agreement for minute. How is that going so far and I don't know if you are saying or not I know you are working on project for them in Cushing are you by chance to doing any balance of plant work there?

Essentially.

Fair enough. so, how is that progressing are there revenues coming in at the pace you expected them to is it doing a little better -- just curious how's that performing so far relative to what you guys thought it would it?

So, we're no I would say the alliance is going very well our relation with Trans Canada continue to be strong we are doing projects for them in Cushing and doing projects for them in the Houston Area. We are working on projects for them up in Western Canada. And as part of the alliance I mean we are looking at projects before them on their plan capital spending over the period next three to five years. So we are involved not only in the construction and installation projects there right now but we are also heavily involved with them in their planning and budgeting stages.

Okay.

So that relationship is going well we believe TransCanada will sustain and certainly they have been a big contributor, TransCanada has been a big contributor to our business over the past year and we believe that will continue into the future.

Okay. Wage inflation, is that something you guys are starting to experience anywhere in the business yeah, maybe especially along the Gulf Coast where it looks like things were really starting to pick up?

Probably Saudi starting areas, we are starting to see a little bit, I would say right at this point is not having a big impact on our business. So we talked before that we would expect over the next two to four year is that that we will start to get pressure of wages and availability labor, moreover we are all, we are already above that curve, we are already looking ahead of how we can continue to develop our labor resources and create an environment that Matrix is a place where people going to want to come to work when they make those choices the Gulf Coast was going to be a hot bed of capital spending down there, there is going to draw a lot of resources, a lot of companies that traditionally draw their resources out of the Gulf Coast. They don't have that opportunity in the future that those resources that they normally can order travel for them are going to be want to home, but we got where we think is a pretty expensive network of labor resources all the best country and we are doing things today with local technical colleges, local chambers, the businesses -- company. So we work with on daily basis to avail and create additional labor resources for us to use.

Okay. And John I assume this is the case, but just to make sure I assume that on projects with -- that would get you into the two or four of your outlook on wage inflation, there are appropriate wage inflators in those contracts do you feel like?

Absolutely.

Okay. Great. Thanks guys.

So we have projects to go into multiple years, as part of our negotiations is that we include escalation causes for not only for labor but also for raw materials.

Okay. Great. Thanks.

Welcome.

Thank you. And I am showing we have no further questions at this time. I'd now like to turn the call over to your host, John Hewitt for any further remarks.

Thank you everybody for participating in today's call and we look forward to talking with you in the near future. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. You may all disconnect and have a wonderful day.