BHTG - Earnings call transcript Q2 2021 | Renovare Environmental, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the BioHiTech Global Second Quarter 2021 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Participants of this call are advised that the audio of this conference is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately one hour after the end of the call today through November 9th, 2021. turn IR, over firm. BioHiTech to President Scott like CORE of Global's now the to conference Gordon, I'd Investor Relations go ahead, Please sir.

Scott Gordon

in Good you Gary. and today's participating you, conference Thank call. afternoon for thank

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

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

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

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

Anthony Fuller

XXXX Scott. good results corporate financial quarter to and everyone afternoon Global's on to BioHiTech the conference Thanks, second And you call. We welcome update call.

purchases fulfill company continue Corporation representing across across third went consistent the Carnival This of total technology demonstrates we second carnival complementary expanse record execution brands. of We orders both of as to by largely revenues driven XXXX. of in revenue the straight quarter our performance XXXX vast digester was million, Our achieved by solution. public our quarter since $X.X waste

remain plans. our our and in We to our on in results confident approach growth operating executing by these are encouraged

broad in developed technology two those waste spectrum Our of solutions be deployed employed to both complementary or of yet the and but solutions. are many

and fuels Our carbon drive that deep alternative damaging Landfill. had create needed the which improved and outcomes, to reverse and landfill sustainability to for is lead of environmental change. from climate Action reduce are commitment destined vision usage emissions, reduced impact been

driven management, disposal. waste provides our immediate continued food reducing preparation, real-world our real changes is to data provide promotes encouraging. all food and its Moreover, more platform impact. waste which with are food support friendly to through chain, waste source. than The analytics Carnival purchasing, make relationship expansion drive digester in the transparency, handling that environmentally solutions We We of their commitment sustainability ever supply at Corporation

actively engaged are food quarters. convert into in but the We which hospitality, service new in only not others, government, the also we sector, hope and opportunities retail, wins healthcare, coming to maritime client across

Recovered coal. utilization of SRF this our for This we driving by client Virginia replacement tons facility XXX,XXX producing and focused municipal is keenly are EPA Martinsburg, for recognized waste use of we We produce it. XX,XXX call while what solid on to XX,XXX HEBioT Fuel, manufacturers as others capable of at Solid of our plant. cement tons annually, processing This West SRF -- a

We the have plant improved throughout quarter. operations

coming anticipated consistency customer and issues led in process we been and issues SRF curing weaker have our operational sales Maintenance sales more the largely and and and our Those at stage in delivery shutdowns in quarters. inefficiencies for sets As the resolved performance. repairs consistent growth reliability past investments mechanical and and to solving expect than production, production.

the state. such and and for most This in recovery our for is within mixed Virginia plans waste resource West XXX of Virginia. into assessment facility passage as XXXX, of May law the eliminated Senate solid waste expansion Bill in the Martinsburg, actively promising processing ours With state West traditional communities fees

we ahead the of positive We renewable through This stakeholders renewable This projects diversion, We're of June attractive. ends, specializing connection waste-to-energy a project in well we also with in near-term HEBioT for and plans and more project. with exploring and Services, evaluating SRF. and this firm additional make transportation the are forge for the we includes development additional impact to economically solutions. our new development make developing by uses expect plans, executing for the and Together, as XXXX. and renewable our BioHiTech conservation. drive overarching entered into bodes additional leverage corporate to landfill of fuel hydrogen states and summary, energy our To of Lone environmental objectives Energy those feedstock the the growth our and other including our facilities gasification services on are actions opportunities use to technologies, a goals Cypress In management we agreement for in bioplastics. our norm offered

to continue revenue. We drive record

we our our significantly with our We engaged levels. strengthened and record at it as team operations. from We've I review now and Brian financial call shareholders are our will smartly who With plant over results. Brian, leveraging and take Essman, pass we've shared expenses. We've our that, improved executed will the our story, learned to away.

Brian Essman

first and company high over quarter growth marks in of of revenue XXX% new hello XXXX its XXXX. in million the the The ended Total the fourth everyone. June consecutive of company the XXXX, of total and quarter million XX, XX% $X.X comparative XXXX. over went XX% quarter over quarterly since third with the increasing second Thanks continued public $X.X revenues quarter revenues of the XXXX Tony,

increased in less total the revenue quarter compared second comparative XXXX contribution, second reported X% to XXXX. revenue direct business second The as of all lines of costs the growth quarter of quarter the quarter first of of in the During XX% the overall over XXXX. to XXXX, revenues, of

by to and of of in primarily $XXX,XXX continued HEBioT the at compared compared to increased and as compared hampered XX% XX% of has of in quarter increase and in been growth $XXX,XXX to the $X.X revenues pressures be first during an stainless expenses The driven result percentage in XX% XXXX second that line as quarter first to decreased a percentage a administrative quarter decreased line by The line. XXX% However, its in and customer of to business the equipment as of continues from XXXX. quarter company XXX% to the in the of in quarter our X% increased in repair quarter of the the of increase The quarter corporate the $X.X such the digester shutdowns sales to quarter second from chain of to in achieve in of supply Carnival the decreased have to XXXX HEBioT are in by first SRF Corporation, the sales. quarter second quarter in revenues revenues of an line million of to revenues as The selling, of maintenance comparative XXXX. million. digester The XX% second as prices general XXXX a second compared XXXX, this XXXX, comparative the XX% quarter increase XXXX first the increased and an increase the a by steel offset that to resulting driven first quarter used to was as -- as operations to in from second of in revenue quarter that corporate the and of by of second loss revenues decrease in XXX a the compared XXXX. about of second in the XX% XXXX

by equipment revenues and carnival As increased million XXXX line corporation of compared the second digester the of corporate of sales. XXXX, to $XXX,XXX from quarter over by business to $X.X second quarter XXX% driven

the an relating decrease While by in a adjustment XX% its in XXXX well HEBioT at to SRF contract. the take-or-pay due shutdowns and provision by from $XXX,XXX to maintenance to repairs as the customers as continued customer, SRF line $XXX,XXX

$X.X June turn the consolidated loss over six For I consolidated to attributable call unrestricted XXXX June parent a ended we $X XXXX, use XX, million. $X.X a net of for loss At the Q&A. now will the the activities XX, million and a Tony $X.X operations XXXX, back loss incurred call three ended of the the months consolidated cash cash operator the XX, million. for turn was consolidated to before company operating back months had of million, of net $X.X million, and from June to

Anthony Fuller

which Thank forth you, A have our do BioHiTech one. am Thank time seriously. carry that our this we the our drive adapt all in for lead our that take essential of We today services It's and is the to power products that outcomes. and we're right It evolve change and That environmental positive we is team the you tomorrow. that world. responsibility. But is behind the recognize to enables our in our are a charge everything We we is And goal we a And goal. to your for growth exceptionally stands ways future sound. needs our Brian. and mission. right positioned drive do to essential is strategies as continued singular Gobal track. That drive choice. a process. the charge. very to I confident slow sustainability it and BioHiTech on them, for address your immediate we that impact. support

Together, questions. the and are a implementing. to all Operator, difference. We are we call open please executing making

Operator

first One for please Instructions] [Operator the moment question.

with ahead. H.C. Our go from Dayal Amit first question comes Wainwright. Please

Amit Dayal

How contract. just of with expect that XXXX? regards Tony, orders remaining, much the fulfilled Thank far? you do have you. you complete will Or Good spill year? is so those And everyone. of that that by What end into the Carnival the maybe afternoon been to the portion remains? know to

Anthony Fuller

Amit. be The in you, bulk will fulfilled carnival orders XXXX. Thank of the certainly

of deployment you'll the could as to We're XXXX. make we execute parts other their are underestimated bit said I think see in regard early here. to we and where seeing in happen little and some see pieces this happen. XXXX that balance might that just would tried XXXX. think perhaps occupancy But few that bulk some a with think And of you'll needs their the a in us I Carnival maybe originally was spillover results

positioned good feel about we we're So where that. with

see you'll you'll progress throughout us continue see Carnival to think I the year. with So,

Amit Dayal

And we Understood. of pipeline. any significant have outside do in for we the then, -- are customers Carnival the digesters other

what's Thank helpful? on would pipeline, Just be the very any in you. color

Anthony Fuller

Yes.

things that that we that of for our one is did Now, as the success ability be We've a recognized that that of we with we we earn them could And us that our knew one the And to had transformative people. was depending attention Carnival. observed. was we relationship. then hoped And things attract for other that. and seen we the other opportunities execute of upon to on going would

We're pipeline yet. we with in discussions who to are free not working you moment, this that have specifically So, attention. to -- results tell seen do our we're we at evaluation in others. and with attract some the But

As attracted and by on quarters, the in contract previous we I are to that my some the have hope absolutely, by and the attracted. digesters but attention have comments coming said in heartened news execution has our in the here we

Amit Dayal

Thank you. Understood.

plant, numbers do were you. some Just the related on one into to respect know, be a last and there? Getting Thank color and bounce of of little from quarter Tony. seems the year, maintenance helpful? issues. quarter the back I shutdown would over me, third this that Any sort sort you a With because see it of fourth Martinsburg of pressured

Anthony Fuller

revenue. with I think have that comfortable we revenue to going Martinsburg. that we liked are level numbers mean, better would for that way There's to communicate no of have we're you're I right. seen

I our think to we the to our we second consistently all take shutdown really the quarter customers of and thing was of It the the or are product. of take result the not that in lack product. inability produce that of here though the was that important operating saw the ability plant a result to note revenue our is at

as do results So, we this go half last the of through we And year. by we heartened are that. anticipate better

to our last to I of closely are the have half that excited mentioned honestly. think customer we now do we prove and are and working positioned I year, to this the there that everybody been in comments, better certainly with believe

that this a half of is and think I don't to it's The the for that important of all does I but an know us. other I data thing that -- want year last point solution,

fuel. that And for other time The it there by finding energy is and for are at we're into the that us encouraged for the fuel. that we thing the what well. reason marketability reason this as that broadening looking underscores other does uses investing we're The the we're we're

So hopefully that's help.

Amit Dayal

Tony. is, all so It That's you I Thank much. have.

Operator

The is B question Christopher next ahead. go from with Riley. Souther Please

Christopher Souther

that Maybe It's Do momentum potential could little here. follow-ons other you with to taking bit potential question great orders. beyond Carnival. you with the Hey have my what in guys. you think see just next et the Thanks multiple digester so currently for about the just could for there's talk customer? a runway wins And hospitality, grocery, cetera? by where between year the areas food the rank you see over then, end kind marine, maybe you of here potential service, markets additional or highest

Anthony Fuller

Sure.

Okay.

let me address me first Let Carnival.

contemplated think we about as he where completing really we feel that. originally what we that with we I good look execution at are of Carnival, with

might to there a transparency think continuing chain with that of Carnival for a I for works. as other may that their ships. There's those to food also, there ball digesters is few from need that with customers be That's their data they of ships opportunity not services the is some a cruise increases in analytics, and find that provide some the their course, relationship. that lines Carnival crystal and of there way perspective that or opportunity and their supply works extra -- my of kind capacity is

this ships of we that important inception. growing because standpoint think part to have works ongoing with a at long works Carnival the problem that solution So are its we the talked out verticals doing with the waste is committed think that the at an ability the this solution analytics, on mean, water. the data something inception that this the we're that the fact of on and to food everyone, basis that there, to and establishes through looking and do disposal. our solution of about at it's we we Because From offer fact at a I on we've other

capital look back verticals to at still There's that. I We working also appreciate is there. have opportunity no their smartly other that. players your forward. But are in slow about come been managing go the you industry through an industry other as there you judiciously and that question. that has the doubt and structure There's And when and

the you it discussed I've that chain we that in as provide opportunity retailer in As retail. today, from and supply do opportunity the know as see will that do in I this managing sector. the benefits see come we healthcare. some background We a got solution

I believe arena we've are excited what opportunity I the there So that and well. go the we're that there is another see logical. area kind top see encouraged by the Government, would deployments just Maritime, We solution if of that -- can three one took healthcare in we another that's there's direction is that healthcare I as done besides just say, there. and do obviously before government to

You to government at taking our solution should work conscious, more direction that from we're and pressure the it perspective those in and environmentally appropriate be a look facilities. works

be Fair you would as I the give those the three would -- So be there. grouping top that as that the enough.

Christopher Souther

with could are Cypress. of this Yes. be Lone just agreement early there? at the timelines very the but key and on kind kind with tell to then targeted point, just program And you of maybe bit No. too That's helpful. you've deliverables what on of focuses got that the potentially that a may elaborate It

Anthony Fuller

and glad you the ground not be society. a little encourages we that in this the for of more a broadened SRF and the it for we as all this focused us I'd makes not society, the a makes the take beautiful for were the first sense that us And then you I broaden To convert alternative that. give take which we bit the has as where burying color sense as mean digging only story. company. economy thrown a fuel. holes Yes. on were But is customer of but the for we of Really because of type been it use away. have a area use it a circular a convert to it you area to that on Because product to that fuel. and we And have your base uses that produce. to

the the that facility. and thing does have efforts Bill does. a XXX I been other deemed But is what with it talked West it recently, So, in manufacturing Virginia about we

waste, So fuel of municipal it. take we solid so manufacture out we

that So to that worked focus on initial a as together. that's fuel broaden of the we've market Lone ability been for Cypress

can have the is the them, step the projects of people market multiple we the and that determined that thing wisely And we so uses evaluation our resources the managing for next of to this other is of the we them we had it? best fuel? The because we leverage to that are the additional new with capability as brought this build kind to in do economically way next in recognize resources of of the evaluate we in-house best don't viable. at need technology which bears candidly we Where the our use pipeline. entered look an into additional our with is plan. most bring as process And large-scale projects fact Where additional some we to construction have projects that our we

So that. they with help us will

little been -- approaching them. doing work with more that on priority a them. that's the bit So And information what that's we've that's we're the with been

Christopher Souther

bill the in in just of momentum profitability. there in or think that very future the are the potential there? types impacts to you Martinsburg similar What from might you state would you you here. -- with any states have be And there in current able where quantify guys? similar one plants for think And helpful. near in plant That's other help what in ROI West last on maybe the Virginia be Would

Anthony Fuller

There are that. still parts a with moving lot of

the though a The of avenues you reflects for it. waste to allows address market. quantify manner thing is specifically you it So different it in that it's hard the that to does

how approach to of waste than before. different dispose able had a to we with market with we're take more freedom more confidence, streams of we So

Virginia think factor miss working positioned West thing is we that of that State in if operation a that of work the the using recognized that's with develops energy for are, key fact that is The of to there I non-economic spot the relationship our other we with be And can state we're is kind we it A able not which fact such that other the West manufacturing have State been is as is Virginia. cooperative a a country the what policies. waste. solid careful and

Christopher Souther

Appreciate helpful. the Thanks. That's color.

Anthony Fuller

Okay.

Operator

The Woo Capital. Please Ascendiant is with next Edward go ahead. Instructions] from question [Operator

Edward Woo

inventory Has seen? Yes. shortages there been that any or component you've

Anthony Fuller

really a Our supply team of this done has of and got out good in it. chain job managing they front

So, have been then been has there and there filings. you I in tell to impact. can't say alluded in I And we our that shortages. script that can the

been out We have go have the impacted while of that they're quarter. there. the a team seen of the know the accelerating orders. road lot our even did credit this for by give shortages, we that bit an a rate of impact stainless I to addressing up. down we've and And production margins not on that steel But our And of pricing Carnival course over although, just on looking

I on rightly there. brag done So they've what for them

Edward Woo

you wish answering Great. you Thank good for luck. and thank Well, you. questions my

Anthony Fuller

you. Thank

Operator

with go The Dillon is Capital. Stewart next from ahead. question Flink Please

Stewart Flink

a on congrats Brian, and Tony great Hey quarter.

Anthony Fuller

afternoon. good Hey,

Stewart Flink

what is and working comment current point any on general at one cash, assets the So Could current And be if what released my one sets first under assets. looking may under restricted And total for capital? they balance they're at sheet. I for? see you cash I'm into two of question

Brian Essman

funds portion the at bond end Virginia the back The the assets accumulate we to Those two as such as Those are all taxes Entsorga, a us bond. specific come a towards mix insurance that they make reserve up related Those to non-current are principal. fund. West where and items is that to that that the payments interest in current the of well of operational are are as is the bonds.

Stewart Flink

it to your million G&A little quarter. -- expect Is thoughts be it the quarters? I I'm may over other on for one normalized over $X of at or next that that think higher have that? I Okay. four go the something question. What's you lower. Is looking

Brian Essman

it is it's has not goals our to heavy been that so of One past. it as keep as in in, rained the

going taxes becoming HEBioT the from assessments was as no The by under effectives state Historically, solid tax second the longer responsible we've facility, a us facility as of will forward the that waste impacted we that. be the waste as paying has operational, Bill solid for property some that reality the we're and at well and Senate forward. contested July is landfill the just treated quarter and Xst moving

Hard say where we two HEBioT plant be. So bring it up. another to million will

is not return. reasonable Our to increase it without focus unduly a

Stewart Flink

work Great. Thanks. Keep guys. up the good

Anthony Fuller

you. thank Hey,

Operator

for now pass Showing no to Tony closing Fuller call the questions, further back will I thoughts.

Anthony Fuller

thank great our your Thanks, to on in interest want participating future you all with and forward We Global. of for BioHiTech call day. sharing I in have to look for progress you today's a updates. and

Operator

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

now may You disconnect.

Renovare Environmental (RENO) 10 Aug 212021 Q2 Earnings call transcript