Equifax Inc (NYSE:EFX) Q3 2019 Earnings Conference Call - Final Transcript
Nov 08, 2019 • 10:00 am ET
Ladies and gentlemen, thank you for standing by and welcome to the Enerflex Third Quarter 2019 Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Stefan Ali, Director of Investor Relations. Sir, please go ahead.
Thanks, operator. Good morning, everyone, and thank you for joining us today. Here with me are Marc Rossiter, Enerflex's President and Chief Executive Officer; Sanjay Bishnoi, Enerflex's, Senior Vice President and Chief Financial Officer; and Ben Park, Vice President, Corporate Controller.
During this call, we will be providing our financial results for the three months ended September 30, 2019, a brief commentary on the performance of our business segments and a summary of our financial position. Today's discussion will include forward-looking statements regarding Enerflex's expectations for future performance and business prospects. Forward-looking information involves risks and uncertainties that could differ materially from those expressed in these statements. Please see our advisory comments within our news release and other regulatory filings for more information on forward-looking statements and associated risks factors. Approximately one hour following the completion of this call, a recording will be available on our website under the Investors section.
During this call, unless otherwise stated, we'll be referring to the three months ended September 30, 2019, compared to the same period of 2018 We will proceed on the basis that you've all taken the opportunity to read yesterday's press release.
I'll now turn the call over to Marc.
Thanks, Stefan. Good morning, everyone. Enerflex delivered another quarter of strong results across each of its product lines, driven by the continued growth of its recurring revenue business and operational excellence within Engineered Systems. Revenues of $544 million and EBIT of $88 million are indicative of the focus and commitment of our workforce, who everyday exemplify our values of integrity, commitment, creativity and success. We entered 2019 with the record Engineered Systems backlog, which we've executed to exacting standards of quality, safety and profitability throughout the year. This backlog included a small number of higher-margin projects that were booked in 2018 and which are now progressing through the manufacturing and installation stages. As these large projects are completed through 2019 and into 2020, we expect that consolidated gross margins will normalize to the five-year average of approximately 19%, offset positively by future contributions from our growing asset ownership platform.
Bookings in the quarter continued to trend that emerged during the first half of 2019, bringing our backlog to $701 million. The current backlog consists of approximately 50-50 waiting between gas processing and gas compression projects and gives Engineered Systems revenue visibility to the first half of 2020. While we believe our market share remains unchanged, demand has suffered from a combination of restrained customer spending, global trade and political uncertainty and constrained access to capital for many industry participants. [Indecipherable] is invariably linked to our customers' capex , we expect Engineered Systems bookings to remain challenged into late 2020. As in previous downturns, we have and will