BHTG - Earnings call transcript Q3 2020 | Renovare Environmental, Inc.

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Operator

Good afternoon, and welcome to the BioHiTech Global Third Quarter 2020 Financial Results Conference Call. [Operator Instructions]. I'd now like to turn the conference over to Scott Gordon, President, CORE IR. Please go ahead.

Scott Gordon

Thank you, Greg, and thank you all for joining today's conference call.

Global's Brian are Essman, BioHiTech Executive Fuller, from and Officer; Chief me leadership Anthony team Chief Joining Financial Officer.

management BioHiTech future call, statements this will forward-looking making During statements, that address or Global's performance for expectations operational results. be including

factors and to from involve statements. cause materially may other statements actual that Forward-looking those risks results differ

and that any of disclaims information more to events in please Anthony ahead, or information filed most by information this filed recently risks, November today, this the Fuller. BioHiTech's in the Except Form with XXXX. the circumstances cautionary XX-Q law, release contains that is as occur that go to any as of it. It pleasure publicly For BioHiTech to refer to these my BioHiTech's SEC after particularly call, is now The required over accurate CEO, today Tony, time-sensitive revise periodic to only accompanies this obligation call. about turn described reflect XX, or risk call the please. update press reports, statement factors call content

Anthony Fuller

solutions Thanks, you Scott, time management. was the to experience, and the joined CEO call. many waste From on of I by today's in addressed company's those attracted as company's of I When BioHiTech first for of Global. environmental first solutions the problem. sustainable be for to Board good I'm happy I knew technology the Directors afternoon joining everyone XXXX, that cost-effective

energy can deeply reduce plastics renewable fuel of energy and committed pollutive keep other landfill drive out and designed taking remain to Our progress will emissions informed We maximize alternative forward. technology These as to of It gases stay discuss, corporate initiatives our shareholder oceans. reflect can the we food to waste, I actions. And strategies and production usage, mission. shareholders value meaningful and steps help are actions carbon will going lower use. prioritize reduce our and this also

flagship Our quarter neither a influences of the to year-over-year, down third believe number suffered nor plant resource due facility are production review take-or-pay and in Revenue systemic adjustment West Martinsburg, and of the in at at optimization that was actions XXXX estimated previously negative we largely temporarily sequentially facility the financial performance the contract our recovery at recurring. from facility. that reduced Virginia both

corporate waste third In increased key operating the certainly XX% the addition expense the forward. including control of our is impairment in quarter, nonrecurring Martinsburg moving to expenses revenues facility. lower-than-expected one year-over-year, strategy related to our Expense of focuses the

on align operating steps focused implementing profile. to reduce keenly to expenses revenue better are We with our

During full the enhanced operation conducted team optimize Martinsburg's production a in third effort analysis subsequently of the quarter, that an to management facilities and capacity. the plant's we

completed deal, during learned October. the way. adapted of and this processing in reconfigured it improve online have and production the we've along came facility During significantly components process we XXXX, until reconfiguration quarter electrical and a Since certain revenue potential processes allow be reduced and and process, were to for this capacity Thus, additional was plant to was to streams mechanical second the great in introduced.

and York. Albany. port of the job of a this with venture announced this our future in construction New learnings on a a land be campus goals in This will in the renewable York. energy energy The creation better operation optimize a opportunity facility in To when are said can Hudson River treatment stated the biological investment establish in in expect the from of additional end, past, across high-efficiency is where October, As New process strategic initial government of we campus proprietary our critical of facility. waste the goal we using venture this and to consistent Rensselaer, the we we renewable sustainability

will we the move projects future. that this project forward phase implementation optimistic be in other are and to able to the similar We

a happen our Encouragingly, Carnival preparation are million XXXX, Carnival that of in in Series Revolution $X.X cruise September can In safely liquid, environmental resumption standard worth its of They line. processes. other the since the under Series problem. purchase have expected visibility units on-site of address any placed food of entities Digesters. disposal number with in master excellent these been These through most sewer of third used installing The processing digester seek will revenue. have into waste provides target our volumes their waste be as and has highlight This additional the cruising. of orders, to waste future discharged they orders along lower aboard Digesters in markets. $XX Revolution to significant quarter delivery Corporation traditional discussions various ship our future July was more, levels than million began for contract. orders, quarters. disposal support Carnival with a of with also progress convert We eventual of costs food What's They customer the

the expect significantly the from quarters. contribution We more coming of in digester our food sales

that with cruise pleased the the Cruises, company waste being industry food Carnival, We clear with our sea. solutions Princess the recognized in of second cruise largest by that the and our are cruise have titans real the company. It are penetration world's largest value is

waste food campuses of additional municipal waste, and food a Meridian We future in we and cruise received are the for and provides verticals. food for digester third and This that verticals, quarter, optimistic additional subsequent our and share is material opportunities medical there X the food in health facilities. sales in order growth regarding alternative the and country Apart care in at additional the relevant digesters validation prospects New are service to from York. that digesters for facilities Beyond and technology hotel Health Jersey is opportunities the our new with grocery highly in services medical across of There New for various our hospitality, remain thousands industry the order food the solutions. waste cruise industry. energy our and market provide an end Hackensack medical restaurant, food

we which to September protocols part for the is where use Altapure-APX of their have yard shipped it a the its disinfecting sailing to being for in license, system SeaDream exclusive we an system, as used on industry cruise during the first on disinfectant our season. Moving

the provides the more of the was Given district Pennsylvania. This and paramount horizon. bacteria. system the its Altapure-APX also the first Altapure-APX we're and to the District country's children, of to in is students, the from protocol school including viruses, fundamental our and bacteria the health contribute health gratified to on and than and are to late automated to and chance valuable is Area its safe School recent and In safety in touchless as safety cruise protect not-too-distant greatest safety help give the a of spread aerosol other system to developments the schools the we introduced vaccine extremely of them lines a resource. disinfectant incorporate trials, eliminate our part staff Nothing the to COVID-XX the a viruses hopeful process country we the confidence that in change passengers is September, and coronavirus. and Hazleton Altapure-APX for Maintaining and

CEO, sustainable Our out operating envision success corporate keys of chance. I map BioHiTech. expansive we down has market initiatives driving share core We leverage, our we its we've began are the and founded This sat growth, for future. what history, a more set a and to Upon believe business to and never capture with optimistic upon team, are been company about long becoming opportunities.

categories. measurable by a is into X track us Before believe path I we which success, and it falls can

increase Meridian growth we are off historical. our untapped just Health First, we believe, that contract will create there are afford the substantial business we broach. revenue markets to a beginning must that a Hackensack shareholder start. We've The great of cruise appreciably. the which, We're digester with can our with trajectory, value. lasting This sustainable with industry is shown partnerships

Second, in already our all make begun which And and Efficient reducing more budget control we managements demonstrate these we are company initiatives our look future of process. SG&A. must expense more forward will means to these commitment the meaningful to communications. critical this our prudent discussing by shareholders. We've by revenues our

through a share year, fuel cement that converting of tons tons To the design processing least problems. Martinsburg, measurably have of we've our coal from to our April them. a solid our like plant. for the metric learned into And to to XX at some take equivalent waste It revenue. provided ability ability of of fuel revenue challenges, development pressing Argos we -- leverage helps to in regarding quick cornerstone a significant the plant We've I'd renewable multiple pay by it this believe improve a as of fuel but is that and of At November BTUs This I in a this is success convert learned and this strong we the what plant. Virginia. solution, From environmental X fuel landfill there pound, waste Martinsburg of X,XXX significantly, per is end, facility X,XXX waste into story a itself reduces this the to operations to municipal solution Argos X,XXX it and minimum Next, our production as had nearby facility must the facility. is our West company. a stream which waste

also plant, Title needed at the reduction As -- a V in ammonia of in Argos plant's control a emission. to also in amount of coal reduced Argos significantly. result of using fuels our dropped This produced alternative pollutive that use resulted the

pursuing. that campus, upon which can parcel acquired experience well I renewable New earlier, upcoming learnings As other applied land be the are Martinsburg that in to in came our opportunities we to York we as as our energy the mentioned newly intend from Upstate now build

position As fuel. these in of waste world plans alternative will solidify, they as the into help converting leaders us

and but are thing communicate must the our ensure We must mission way, shareholders along our is and we to the that suppliers. us our customers the for we tell understood. It's both we the communicate We must to do story communicate We be and that our also our world. better. excited more measured job out we we clearly, to realize with must must set absolutely our we that with with case to one will measurement. do, welcome must very communicate we make and to We prove shareholders. Fourth,

is points. as working BioHiTech a be our with at multiple Finally, singular team together underemphasized. cannot single organization to a mission. stand and We vision achieve The this inflection

We have great products.

have and technology, we proprietary proven processes. have We

privilege holds And which to in We our I the in in are know to success world the aligning future the the together as most attack environmental pressing the adapting while some who of I've that that had matter around over solutions now X review organizations am there working key and this with on I solutions And to Walmart. complex was excited the singular Brian, continue solve to what us problems. mission. financial aligning third and our most provide the at learning that that, results call of I for planet's for BioHiTech providing and our Brian? CFO, the quarter. purpose. see will will turn we

Brian Essman

equipping of in to quarter XX% in of XX% a revenue XXXX. $XXX,XXX was was compared million loss as from Martinsburg waste in share areas Thanks, Tony, a revenue. on estimated and outstanding million the shares revenue for year-over-year of of in The in quarter expenses $XXX,XXX management quarter to of The XX% increased and was and to increased waste $XXX,XXX third rose in previously partially in insurance food year-over-year $X.XX quarter production, in quarter. $X.X grow to operating third our negative XX.X is $X.X transition decline year-over-year Rental, third and XXXX sale increased This lower $XXX,XXX. primarily fees third process demands undertaken in impairment to unrestricted quarter quarter operating caused declines from million up advisory to revenue service primarily hello expenses $XXX,XXX quarter to focus expenses sales $XXX,XXX included of XXXX XXXX. and primarily the stock-based some at Management the the decline of compared related of everyone. revenue combination maintenance that of million of in revenue represented decrease The construction the the average reduction XXXX. to to social higher September more third a of effort XXXX. expense At the The an in due its of to average fees loss loss XXXX in and by described declined media production our expenses per core outstanding entity, the facility. Martinsburg reconfiguration insurance $X.X continue Total from contract the the nonrecurring $XX,XXX D&O at increased revenue due XXXX, products. and of compensation, weighted digesters revenue, of of quarter shares waste from Martinsburg operations share third million million a quarter impairment in the the XXXX of concerted expense the XX -- adjustment also efforts on legal operations. million. company optimization from a third $X.X offset loss prior its equipment starting XXX% Medal, to cash $X.X the and expenses, as and Gold $XXX,XXX, and Loss other cost a weighted drove on increased related costs the to to in expenses previously and XX% year-over-year third facility to $X.XX to of third operating million take-or-pay per revenue Total XX, XXXX. the declined Martinsburg its negative approximately of the also by facility, third drove $X of to Equipment the was net the compared advisory

XXXX, like the a the in public an the third proceeds prepared to price of completed and the over-allotment total sold questions. operator following for concludes million to million, quarter open of shares, over my costs. remarks, company That back which $X.X we at call X.X I'd we During netted offering a underwriter's the $X.X turn the including of call to in million offering closing

Operator

[Operator Instructions].

Sullivan with Our Tate first Group. Maxim question will from come

Tate Sullivan

I up a Virginia speed facility, what I just it at could it was you comments, mention changes For little to that -- that done during facility, facility? have improve at -- of background Or your you and COVID the didn't Can give would you a noticed West much mean didn't but anyways decision that that of COVID? was probably independent you you please? identified

Anthony Fuller

around for were a as staff Okay. COVID a plant the remarks. impacted No, we was the you COVID lot the Tate, by -- We couldn't thank question. prepared fully and mention lot Clearly, had country. the in we didn't time facilities of operate.

one, at to accomplished did do timing or referred that a doing The right were that at we a and So impacts the created I to the what us that. for had fact in we part what doing brought that of at better, for to that a it. new that enhanced we could management recognizing, was take We of and purpose that look seems a point. look committed we were team. we

going to as we to new in plant, ourselves be team, go the you're was team. reconfigure what and we address process, to the that evaluated an to and things performance to find we for as future. we make evaluated So are a it, the working knew listened It as well, in And what working addressed and difficult we that things any are some brought some in, commissioning time opportune prepare needed seems well and better not. decision with

what So did. that's we

Tate Sullivan

the other please? what took in can remind And in facility then were start the that it you're Okay. you York? West that where comparison developing it in timing -- to running, trying me what's do West to speed it you you the How if at put up you and actions does where you today you the the Or that New -- that make to took Virginia New can strategic in can in took are Virginia? -- what potential you that and York York, place, in New just changes facility build long comparison of

Anthony Fuller

of I'm greater ability go bring units can in reimplement back other a Virginia, tell make that we to to in can that type you I confidence actually and not as able online. us that this our comparison we we what sure what we're comparison. gives an apples-to-apples learned West

plant As another energy be like what's the of renewable as would the Martinsburg. campus, as facility, we in part York, far proposed New discussed

Although create one as larger in some that. do you than that of we Martinsburg is the have probably realize efficiencies need that facility probably what we we learnings a and

well of We renewable very other that works also type it with learned endeavors.

realize we yet Rensselaer the why brings look you forward to a us bear. proven but you have of to So that that's technologies campus when and at that goes in a be part that this property a concept that allows campus of new,

are those some that So learned. things we've

understand to to difference waste U.S. As some technology far stream itself stream, a Europe, been it where the some in there's the waste as has some to and the the of reconfiguration in was for time. that was Martinsburg, it in of the adapt used

adapted we tough So now. be to and fix right needs fixed know what to we made the call

did. that's So what we

Tate Sullivan

Great. -- running, Martinsburg else then mentioned up you with you're the please? revenue referring Were that Or something the additional you back was And that starting is streams. SRF Okay. to last production? referring to, you mentioned up and

Anthony Fuller

that looked about a Well, I the there. there's things that additional mean, one we of when we streams, you can of things look talk revenue couple at at

of ability don't to what adjust the We of that we things, do think bring require them what the some processing. the there blend the to is of as that have facility waste, is opportunity in One slightly. intensive that maybe we fact types to

So that, for that your you adjust adapt capabilities specific to circumstance.

of yet the types be ancillary We looks in just if working learning. there's to from today those that what final know I what type so stream plants different its is of are a campus, is, have we in don't a are We're that like for we we of locate that these all an look waste think revenue opportunities. revenue thought. types go. these an And -- thing, demand other that were adapting of is greater, recognize, are I hard recognize at mean, for. you that, perspective, as it other streams things thing stage. we the in revenue we begin is There We're The think other environment, additional -- other broadly that marketplace The present to creates from I the realize some we we as than that greater created -- there of to in campus some this perhaps. environment, could

our that maximize ability flexibility of creating simply we're to to some grab So opportunity.

Operator

This will for over like remarks. any Fuller the to Tony conclude question-and-answer closing session. our turn back to conference I'd

Anthony Fuller

Well, want to in future all participating our you. we Thank updates. want day. for Have interest Global. BioHiTech I'd in a progress you say with you -- great your for thank and look I to to today's sharing of forward in call We

Operator

The conference attending has now you concluded. presentation. today's for Thank

now disconnect. You may

Renovare Environmental (RENO) 19 Nov 202020 Q3 Earnings call transcript