UGSI shares rise to year’s high on record 2011

Shares in fusible pipe specialist Underground Solutions Inc. rose to a 52-week high on news that the company enjoyed a record year for booked business in 2011.

“Overall, 2011 bookings increased by more than 40% over 2010,” CEO Andy Seidel told investors in his annual shareholder letter. While year-on-year revenue growth was more measured, a record backlog should prevent a repeat of last year’s scenario, where UGSI’s fusion technicians were underutilised throughout the first quarter.

Seidel expects to see continued growth in 2012 from realignment work at federal bases, orders from investor-owned utilities, and repeat business from municipal customers.

He also expects shale gas water conveyance to provide a meaningful growth platform going forward. Given Seidel’s past links with Aqua America – which is making a push into the shale gas water supply market – and with Heckmann Corp., which owns 7% of UGSI, 2012 could prove to be another bumper year.