MEG - Earnings call transcript Q2 2021 | Montrose Environmental Group, Inc.

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Operator

Greetings. Welcome to Montrose Environmental Group, Inc.

Second Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Rodny Nacier of Investor Relations.

Rodny Nacier

Joe. you, Thank second our earnings call. Welcome quarter to XXXX

Vijay me Allan and President the Dicks, are on call Manthripragada, Chief Financial our Officer. Joining Chief Executive Officer and

presentation, be During of section to we discussion website. available will our our the today, our earnings which Investors is on referring

release earnings available website. on Our the also is

Reform the I’d Actual to of everyone that the should may Harbor provisions that subject to a operating SEC forward-looking due are call will XX, Moving material to We XXXX. to like considered XXXX, SEC be unknown to to and Slide performance today’s risks Private Act assume Securities differ We outlook. in which our known identify Litigation our the in the X, that results obligation forward-looking risks statements filings, remind refer of include uncertainties forward-looking any final way statements. recent uncertainties our and future affect Safe principal that could and you as performance. no with any on evaluating including and statements July financial filed well as update prospectus

call measures release are our these addition, over results and the will be In With on or directly reconciliation earnings comparable GAAP now in I measure. a like providing these the most for investors X. to useful adjusted provide see to beginning Vijay, EBITDA to to informational that, discussion we and appendix non-GAAP GAAP discussing certain for and presentation Slide comparable earnings their isolation why the we adjusted to thereof of believe turn or the they would We the margins. should measures, most directly financial purposes EBITDA non-GAAP be not from including considered non-GAAP measures. Please

Vijay Manthripragada

to we Rodney provide with Pages by over me to X Thank and us then the for I and are and Q&A. business not we the of for few to and generally year today. to before our half could pleased of tailwinds will driving our let our I our these joining in hand continue review are made results believe truly through Montrose. I members, other we a grateful available But business including in open you it and differentiate team will to what to Allan second execution financial them. welcome XXXX. you. start long-term you supporting of strong presentation to results, each dedication all saying speak focused our highlights Their see to first of you am have them, to much, it without will we clients quarter this the continues for achieved providing up then X into very excellent and and service diving We

on results XXXX on annual our our best to and our view assessed is services on our we not further themes highlighted our to results. half The published can the quarter the our quarter, with we manage second in some business. we Montrose at our how forecast does to is to others end culturally how like results our integrate and and And of of report, fiscal that though and I culture of reiterate you team’s forward impacts Because we into before which look we you which well. to finally, point QX and the like quality, patterns, value find decisions. previous business as engaging make demand how for many and of delving website. how Montrose’s of our themes in we The continue touches would on and around the message report our environmental inaugural This on the business our follow expect can at ESG into the operating speak safety first for look on performance, we for July emphasis themselves, all would I teamwork are ESG

growth and on but that trends with XXXX expand in the annual given will the half growth a by will investment our of revenue for over and objective in key trends. and we remain rationale opportunities. supported driven year earnings acquisitions set by for our I believe May, in the Since organic guidance of regulatory services We federal results solid continued in and our robust acquisitions, strong EBITDA demand a environmental last results initiatives seconds, few sector and evolving exceed to and So the XX% organic across year, call first state environmental markets our all several emphasis now of strategic or our with across our drive key come. we are of years accretive stewardship, increased believe our growth. provincial the segments, will continued on coupled our private for

EPA plants Clean state dispose U.S. the recently for of and Act the operators set environment. Lead to of PFAS expect opportunities hazardous the proposing XXXX level, XXXX. Arsenic, creating And the for with Wisconsin announced water treatment a new that U.S. and pipeline to the Air regulating also passing new with under to the notified pollutant coal-fired and how cure power expects Act. main example, at Pipes with in And Mercury. the wastewater PFAS For on front, compliance Transportation is of add builds continued ago businesses first grafts the methane it Department emissions requirements since stricter remediation It U.S. air few regulation the our weeks in will Greenhouse

the upstream commitment market more generation. of PFAS report programs multiyear emissions and military of regulations operate pleased Canadian beginning businesses. As of gas another were January responsible to Regulations Australian XXXX, focused and a with there a companies X country’s addition, minimal require treatment facilities. And petrochemical times in Canada, oil highlighting them to and renew at year. water systems example, changes our waste new are and on OGI monitor at require their and two driving LDAR X the in LDAR Australia, DoD In remediation rules comprehensive to growth implementing contract bases, we to maintain for to Canadian in

political initiatives, to In upcoming This to here sides from both political this U.S. just of Republican the to infrastructure support. a tailwinds how as bipartisan United of the regulations our and package increasingly terms were path the great innovation business both spectrum, and states we we see by happy see is we leadership States. example Senate Democratic week, with or see leading great in of

customers stewardship initiatives excited environmental also are to ESG than see strategies us We regulations. engage our corporate more by on driven

compounds environment. measuring proactive the addressing or and the of example, emissions reducing For PFAS rising issue in

responses resilient and activities. initiatives market decommissioning to It swings. continue redevelopment largely drive from political that that expect to the environmental corporate to important will our also assessment insulated remains and is infrastructure note business We and associated

stewardship to recent encouraged optimistic increased environmental emphasis particularly on will markets. about are the are We across political parties see we the helping capital and on environment, by the

help to of our longer discussed get in our remain X, environmental or time increasingly We solutions. and as of in as start Montrose numbers measuring realized the our of are manifest expectations periods. we keep you, outlook the over themselves many themes have variations upbeat and with to we to these and focus year-to-date I’ll and XX XX some past the Pages on about calls our but performance in in of presentation, point LTM importance On future

year-to-date revenue of increased impact year services discontinued the in the prior XXXX has XXX%. period, Excluding

services. continuity of segment And basis at were level, EBITDA Response CTEH stellar team XX% is we CTEH. contracts XXXX, segment, before increased main the required run this you and we with particular. fires new climate evaluations which believe that to crises period there response strategic of within pleased growth. mentioned a but converted compared air Permitting organic into has million quality number share. They grew on not strong the annual service strategic of recently, driven CTEH. very response including and $XX And larger XXXX. part the put million X% the year-to-date million CTEH increased otherwise, and industries, revenue Additionally, have long-term to most of annual recent in performance now first XX% organic done they job, most a excluding were pandemic fire the are and growth digits on Adjusted revenue One, this. At entertainment growth, by has an has certainly floods, business. the see is the pandemic. last, in and media change reasons half $XX that year-to-date for service the track industries, in I’ve our example. are team X year The Assessment, the hurricanes, MSAs year examples least, has results. a and to large $XX The segment for million of our team, double record monitoring another to historically their to response organically June of technology more Midwest, they’ve rate more us to was The prior a or $XX or have and And the market in and our traditional our business. are And there leadership which given business

new X to starting source responses into is These themselves the CTEH intrinsically and thrilled and for as to continue combination team and variables manifest state a with are broader multiplicative help software, the example, of execute emergencies of and Montrose environmental value as our footprint Our administer we expectations team. cohesive tied I am strategic to and for are the Montrose customers. to

QX this that clients we that elevated business. now said the revenue result, in taper that is as to year. of this expect the the we level continue QX it sees to and surge revenue What And the and for team demand through supporting QX CTEH year. demand a an they to into QX of As sustaining expected Delta variance is pandemic, quarter relates last their

our service rulings include Within the net of assessment, questions and Examples various organic down a seeing excluding businesses Act uptick. hydrofluorocarbons phase higher-margin segment our new renewable ecological X under to standards Manufacturing drivers for the client to fuel related are and and the services permitting Innovation initiatives. nice American CTEH,

we Environmental team about as positions demand Our capture in Intelligence a ecosystem for better to what and incredibly acquisition be of that services, excited well. to growing California Montrose believe I’m us joining

services. grow revenue increase versus our due environmental QX measurement demand segment, strong. of to The remains all testing across XXXX continues of the demand increasing to Within and analysis is and

PFAS demand high our for air test and seeing methods specialized services. we’re analytical Specifically,

PFAS another addition recent California, to Vista franchise. were the of MLP Our acquisition Analytical our which in capabilities by bolstered stellar is

example also We on investigations, mentioned where PFAS drivers high increased water segment, Within believe our last I the seeing demand of for which third remediation growth U.S. encouraging our Federal for segment, concentrations water PFAS, our in call, of coupled we IP the such recent positioned us strong all Remediation contaminated with ourselves as seeing which our Reuse. then OGMP remedial we’re With acquisition driven and technology non-regulatory further are more sector, Group and standard remedial services. waste-to-energy have seeing and Environmental with organic and certification, that MSE gold the for design from are remediation both issues in really of by is January, unique the our we PFAS. we

In our growth our organic strong to of made environmental our our the terms development in and segments clients. our allocate our creation business business, we new into supporting have strides capital into in and of the a of and innovation our continued in people. for portfolio our our opportunities building across out R&D patent function research, investments of each is XXXX, and technology talent, of launch new Since department solutions great

retention around at for especially at well, and destruction team to And retention our the we caliber director top strong. we’ve resonate. On here I example, built of above Montrose. am to remains continue recruitment level continues PFAS thrilled talent, the that Our and do work of the

our is invested in continued business their and success. people, Our remain we

very strong. Our M&A also remains pipeline

MSE, So acquired IoT Vista, EI $XX only of EBITDA. accretive Sensible far close in our million annual to are achieving not financially XXXX, strategically and in the us and very but put acquisitions of goal

Montrose of data capabilities. addition several key Monday, and areas, the analytics these We to this in transactions. augmenting the from are And software our platform, we cross-selling announced seeing benefits SensibleIoT success the highlighting already

push around hard summary, extending as to we first big a all forward to of year efforts. the all months. exciting let of you of you. thank our their like before, shareholders have we our it results you over because in These members performed an Allan. our and With we me of So, for a company, July of started to Thank as we also increasingly over I and public appreciate the into end where dedication as you full hand you. dedication belong grateful the to Thank as for world. said support did would are and to past like And for your what I marked our by teams continued I work looks Montrose team that, XX future. the

Allan Dicks

Vijay. Thanks,

solid pleased year-over-year have and resiliency We the have are execution performance our focused We reflect businesses environmental and closing the recent the of the our second to extremely fourth with quarter which on from team, our of in acquisition delivered of growth strategy strong nature XXXX. entire M&A continued in-demand results, core produced our strategy to execute our our of solutions.

pandemic. performance revenue drive the of the uncertainty to across to strong on Slide our Moving continue business we XX, our COVID-XX growth during

$XXX period prior our revenue was quarter. Our to current CTEH Year-to-date, second in segments, quarter up revenues of April of XXXX early The year primary of our revenue to of across driver increased year million versus to the well organic compared business acquisitions the were as MSE growth year. as growth XXX% all in and XX% prior million. January the $XXX.X

which we offset XXXX discussed service we of As second have calls, in lines XXXX, quarter our quarter partially the second discontinuing of prior year-to-date on early the and completed comparisons. our process earnings

would Excluding on year-to-date. increased comparisons in growth basis discontinued be lines, have XX% don’t organic of can XXX% and quarterly discuss quarterly quarter year-over-year as second the revenues service misleading. a XXXX We

growth However, XX%. on organic a basis, year-to-date was

long-term given necessarily annual growth Year-to-date emergency of of benefit the growth our the from response We also rate expected the without and X% response end services, are revenues. which episodic growth monitor X% not revenues CTEH on run without of expectations. organic X% pandemic organic was nature to the part high CTEH, CTEH’s organic

due basis XX% is stronger normalization reemphasize XX.X% and XX% Year-to-date, taken million now with story EBITDA in cost performance grew allocate An the adjusted of EBITDA actions higher on adjusted that in revenues. we planned The be grew the in certain have business million adjusted needs XX% annual that temporary adjusted The EBITDA of both I $XX.X points Looking predictability revenue. business following resources at lines company prior and and how is XX our COVID-related in change to and mix. reversed was EBITDA $XX of current revenue. in important to improvement EBITDA year. points to XX, of on also costs assessed the mitigation performance declined due margin our quarter year-over-year Slide Montrose the declined to expected This been year, company. public adjusted XXX to the margin second The business for annually. of periods an which to adjusted mainly was the EBITDA driven how by primarily and margins will margins This business, is basis. evaluate the to staff, consistent we manage hire part basis

work XX.X% has acceleration The to which year, segment Response year-over-year $XX.X adjusted was the segment, the provide CTEH adjusted EBITDA prior pandemic organic The and on segments million prior business related business our million. million adjusted both in revenue Permitting our increases of revenue seen $XX.X improved and lines well demand $XX.X to COVID in response the margin result to was in $XX.X to grew in from were Assessment, year. from performed an services million to CTEH, in driven margin CTEH. in Turning significant second in decline as as the $X by other quarter and second EBITDA Slide lower growth revenues million mainly XX, in our segment. in a quarter EBITDA by

finally, to to leverage primarily mix declined temporarily outset business $XX.X growing Adjusted Remediation to increased increased Now, COVID-XX of energy the $XX.X been reinstatement and at revenue to margins a that remediation the and revenues benefits organic second EBITDA the anticipation PFAS have pandemic. segment segment, basis The of investments and increased quarter growth. begin Reuse of suspended certain costs And services growth in further was million, year-over-year we to demand for in expansion. our MSE. of organic reuse to as made due segment to of X% as XXX of EBITDA EBITDA elevated segment. Analysis the Measurement impact XX% in of of geographic and this in the point the increase attributable margin remediation and and second margin operating realize and waste Adjusted continues costs reflect the as XX.X% reflecting million, result XX% in quarter acquisition investments this to adjusted well fixed

capital Moving activities includes on acquisition-related million $XX.X and a SUs contingent to $XX.X operations, year. prior in of $X.X payment of current million, year-to-date million used prior in structure to was Slide the in consideration cash compared decrease respectively. XX, our the $XX years, and million of flow operating

XXXX, the in capital is the before items increase result flow XXXX. decrease these million. $X.X EBITDA. of adjusted This the current cash as in by the quarter year-to-date second operating $X.X $XX.X The prior in capital XX% prior was a quarter Excluding Cash working acquisition-related generated current offset current in working payments, earnings was increase before activities of from of of million the in operating year, year-to-date driven payment $X.X million. million $XX.X in or the million prior million year. in was was the Compared increase used by versus a contingent working to capital. decrease higher the consideration, change of year quarter non-cash versus in revenues increase in a primarily versus cash of operations of This partially activities the fourth in of year year capital $XX.X in an by working

a of a to very for a EBITDA the the will be flow operations expectation technology, growing to into balance and on at company, our cash continue continued infrastructure in focused conversion cash with incorporates strong that continue ensure excess XX%. scalability. investments We expect year from of and adjusted in operating rate to as of generation of flow long-term we cash This R&D balancing the

XX, June we cash million. XXXX, of $XXX of total million and of As had debt $XX.X

was credit ratio between and XXXX, June leverage of calculated our at our term facilities X.Xx XX, longer X.Xx net under X.Xx. range Our leverage within as target and

new some last capacity agreement, while cost April, sustainability our at plus based million call, which certain pricing ESG-related current $XXX to in performance adjustment to reduced our and X%, during sustainability-linked a borrowings of ratio entered providing our we our discussed point on against for borrowing expanded and into As LIBOR quarter’s leverage nominal objectives. basis credit

a date, preferred maturity the any has option, As reminder, this flexible view potential instrument value to years. to obligation to the Series favorable a redeem A-X in X no our the equity not stock but subject for time we and have given shares the in preferred preferred make-whole payment dynamics. the the business as cash, We first at its

our If capitalization cap, balance you million A-X market stands the in total $XXX include $X.X at equity billion. our Series approximately of equity

momentum increasing is adjusted $XX million. EBITDA million outlook full full our based estimate up Moving year to million $XX our $XX XX, a to business, in our Slide million, we year from of which range guidance on on are to $XX evident of the to previous

a wins our some EBITDA project XX% second guidance continued of and updated our continuation in the COVID year-over-year. of CTEH response from adjusted elevated range recently prior reflects expectation continued The increase to and growth closed strong acquisitions. of quarter implies from stream work, results our – Our XX% results of

single-digit combination a As of the organic completed growth year, the for acquisitions. CTEH, this based high plus is of excluding outlook a reminder, contribution on

not benefit to financially our accretive we strategically adding acquisitions, any from Although, acquisitions. and future outlook expect include does continue

Though our our second build the resilient we differentiating in first value opportunity unique quarterly a focus on the raised in our we timing ability reflects to for another year are performance, outlook quarter thrilled solutions. to through XXXX remains are of quarter. to produce influence deliver results. environmental So projects for can excellent our and of Demand confident our in summary, upon results services strong

regulations joining as our remain and more ready Looking for additional technologies DuPont you impact are expand economic opportunities to this emerging through We customers value begin M&A immense sincerely look opportunities through Operator, team ESG to business in the us rules political on as optimistic their as further market. and continue to lines open your and addressable we contaminants environmental we customers continue be we focus to and our shape such questions. ahead market addressable and take of in industrial a additional will as geographic footprint and the offer appreciate Montrose. the become our and to to political central ahead, Thank drivers forward to to lines service activities for distinguish more the issues. stewardship seek today. growing for seek we our in interest all Accretive

Operator

Tim Instructions] first is question from Please William Our [Operator Mulrooney Blair. with proceed.

Tim Mulrooney

Good Vijay. morning, morning, Good Allan.

Vijay Manthripragada

Hi, Tim.

Tim Mulrooney

single-digit got sure couple was organic it make So little mid-single now like of of growth, growth. a maybe. the release, looks And just for digit to bit press I high according single-digit growth, organic range It you is I’ve your section things last It maybe high your outlook like inclusive more revenue for want to of a annual the guide guide raised looks straight. to organic XXXX quarter. like

expectations? So from annual to by Or coming raised prior typical you. the relative high to range. Thank is – maybe your you primarily strength of end business? of primarily the being other driven that your that the CTEH in Is the of it areas

Vijay Manthripragada

this is Vijay. Hi, Tim,

assert we expect that – single we mid digits. grow We to are business the high continue to to

That CTEH. not around broader we industry including vis-à-vis expected our CTEH, the through correct, the that XX% So the to we’re their organic. not the be And expect this first changing does this the of our in closer you are year. we at and we’re performance, kind high not of half But is medium exclusive performance the range trajectory are year, given that single But strong of narrative long-term. high digits include changing narrative. to end of

the referencing And to release excluding single that you’re and is so high the digits mid the in alluded X% CTEH. to we that

Tim Mulrooney

of CTEH back last half was year. I it. wasn’t know sure. got in strong the Okay, I

were maybe which, me gets some wasn’t question. guess, headwinds you expecting I next to if my I So there sure

expect half unpack year. if two for $XX we’ve CTEH wondering to the of you or expect You above seen of through first kind is more quarters the now revenue levels of little to was a million remain elevated elevated this in this quarter the normalized elevated a significantly because of I that – what second us year? similar you levels could

Vijay Manthripragada

Yes. It’s – just you year. now back, $XX and off per kind was of more million the referenced million, million that stepping quarter $XX $XX and think so like million Tim, per of to legacy it’s we $XX the $XX to million

the So I a QX number think because believe It’s be $XX above we million rate to will the run QX. what peg they will million hard of to $XX elevated their nature and through and will be exactly services base year. response the providing. team optimistic is doing pretty half But services continue through the of continuity they the and they back the that remain a the job, great cycle are demand of business this

quarterly would expect annualized talk what we we vis-à-vis reference we be elevated, rate. to usually their when that So run about

Tim Mulrooney

Understood. you Thank very much.

Vijay Manthripragada

you. Thank

Operator

of with Please Obin Our proceed. next Andrew question from is Bank America.

Andrew Obin

yes. Hi, Good morning.

Vijay Manthripragada

Hi, Andrew.

Allan Dicks

Hi, Andrew.

Andrew Obin

Hi, I – ask changes the are how Look, you? CTEH. on there some structural in clearly, guess, I’ll more business. are question Just

about stable it done about we You think business? Could the And change? How going about profile become given think better into a Can margin sort CTEH? market of talked it to should do how you’ve importantly, ‘XX, stay everything more flat you more so share. far? business services, more

Vijay Manthripragada

Tim. little a team... bit, that try me to The Let parse

Andrew Obin

question. question, Simple simple

Vijay Manthripragada

Yes. Yes.

piece. So – that piece me let me Let take by

positive has shifted believe market that team services, time the structurally of in the in CTEH So a various understand and share, we’ve more I there. direction, that, to levers terms leadership business spent some the very with more

increased take we’ve job so but for incidents like pandemic, fires let’s up before hurricanes, an that that second. that aside signing take they shifts referenced MSAs. executing done and a The is on the floods, the of more the structural And like let’s frequency, have exceptional

So to calls, clients, then are kind of private long-term opportunity to when Andrew, both needs. clients’ services, their as collectively and clients, of we And to these response I’ve now with relationships there environmental to administer is those meet level, that the one-time many capabilities, our which the about more strategic various of partnerships, software of utilization more us prior an opposed talk give government needs. alluded at for an example which help of on sector these

very value kind architecture value a take variables. of and provides team ago. And that’s where it’s monetized. we proposition and And software can a unique they two were vis-à-vis years real and kind that’s be is X real for a level it of that it advantage clients, nimble So at both think stable the those with why a and higher structurally,

Now baseline. the of That alluded as they sustain kind current through that your the kind $XXX new rate question, this And year. will strong first north second exceptionally of is Allan they no, their run million we to, done have of of an half year. expect don’t be to

Andrew Obin

closed of guidance And contribution EBITDA – versus half? a prior of what’s Thank quarter, that tell contribution deals can it. you. in the second deals just to have you your Got far last you so you’ve couple clarify, Great closed us the the just answer.

Vijay Manthripragada

Yes, they vary – Yes.

touch specifically, So let the Andrew. on me deal

basis, segment very So single to tend run within PFAS on digits digits, is EBITDA a teens and typical labs, kind Measurement runs rate Vista the of margin. testing And on tend Analysis that MSE but and Environmental high typically was right, to of side. this the run to segment aggregate, a I’m individual consistent but segments, and they businesses that margins. and takes our ecosystems tends generally kind Again, these side, for narrative. largely one, the about bit of into each in speaking, is puts advisory little that XX%ish talking very fall in and run Intelligence EBITDA double

half the to Montrose reasons, continues the is because to business you acquisitions in margin the on going one of the of that’s mix you the results alluded about context it’s no, really haven’t to margin think we’ve of our be before, call, materially. – And business core impact. end makes kind as the – articulated exactly really And perform shifting broader Allan so profile. sense. outperformance of the CTEH portfolio, and year as not that annual noting the if no, year of Andrew, impact to our The non-CTEH it’s if expectations of but they of of a may worth our variable because the part their differentiated That back

Andrew Obin

Okay, guys. Great performance. you I will later. to talk Thanks.

Vijay Manthripragada

you. Thank

Operator

proceed. next Company. [Operator is Instructions] Jim Ricchiuti Needham from & Our question Please with

Jim Ricchiuti

Thank you. morning. Good

business a see is, quarters, was stronger COVID-related least stronger of assume a business a little similar that other some in if in the a was, there in So CTEH half? revenue be at on to type lot business the we question second previous a that cases, went think we will from outsourced of the is as Should that testing profile I labs. the margin that little

Vijay Manthripragada

working the of kind team the mitigate We’re the impacts testing to the CTEH services Jim. through with P&L, of

And we’re don’t for We foreseeable continued the back it believe I the assumption a future, from of that’s that, that’s I will But the think into that’s half for not year a so a modeling be. now. perspective, think trend. fair hoping

Jim Ricchiuti

know... I it. Got And

Vijay Manthripragada

to rates. Sorry. to And time do for their normalize back reiterate, historical we just run over margins expect those to

Jim Ricchiuti

second this necessarily are Got first, and in needs don’t I itself looking know is in as as I at speculation as outreach lot arise it lend where start about but have an as doing I’m think could of the it a markets? what days you how to you certain mean normally bill Montrose. ways outreach, is, early guys it’s of area far you it. Yes, seeing yes, some might and internally? I Thanks, And the curious, question discussions Vijay. it infrastructure for

Vijay Manthripragada

you But [indiscernible] do by outreach, mean Jim what

Jim Ricchiuti

Okay.

number for maybe you let’s of you’ve back you? at biggest the a you and it. parts all, – do go had First as the opportunities, see step say, yes, of infrastructure chance take guys a one, to Where look look, through what

Vijay Manthripragada

So And what the advisory The of initiatives to primarily inherent Jim. on upgrading creates or opportunities is and mean to build represents we needs or that roads water testing – us on our infrastructure infrastructure assessment or side, the for clients. the I bridges testing and by related building enactment

us. redevelop represents the select see that And of from start so remediate in may need aspects to tables of In and for also to demand result we programs expect or instances, soil downstream the those or water existing opportunities initiatives. those

we’re not environmental associated adjacent as that is to, testing us. or know, remediation beneficial with assessments, a you to to but so going the activity And bridge, road and we’re build

where Does sense? that near-term opportunity. And we that’s make so see the

Jim Ricchiuti

that maybe to out it and least to. seeing to It does. what to be might able not talk But you would flowing be about more clients demand assume would you opportunities necessarily reaching you at in, bring

Okay.

Vijay Manthripragada

are clients through the we are investment we capabilities. Well, as dialogue active – in are it’s clarification, well, efforts a and we’ve point made, slight that around with commercialization of very not our for – but services only seeing of this alluded integrated on calls, our to the just I’ve to to clients. we’re an cross-sell of ability increased set solutions kind prior provide And just

beneficiaries of And expect related so is be to we infrastructure that occurring the to build, – bill, certainly, the Jim. result, of as activities of going a that. But independent we’re to

Jim Ricchiuti

synergies be question Okay. is, to lines wondering me acquisitions in I’m and for I’m And I Environmental given extent And are CTEH. last other California guess business, what opportunities news. my potential even with your your thinking wildfire with Intelligence unfortunately to a the is one the like obviously, the which something to of on respect there of mitigation, continues the expertise what just eye, caught

Vijay Manthripragada

Yes. opportunity, levers a well, of there of the think tend – couple transactions think I to is which, over long-term, Jim. of Yes. I we again, mean

there team it’s have what the It’s fundamental increase, excited really you the think the and – So a which be in of for really more about we to continues encouraging is to for opportunities or Jim, going believe next result to as on the example, more of then of SensibleIoT side, and simulation, be the our we’re process them set integration platform, can just air ongoing going if result on be fires, as need the which for there they folks, we’re The analytics, higher be, to right? part immediate and remediation. which recent these of that to have quality about. the of group for of the some need going – immediate will cultural – And Montrose. testing term, great fires industry. It’s a thrilled So some ecoseromiological we us. mitigation is The utility going as data likely to particularly to for to testing, of a very of right? northern But service of imagine is a the related potentially both California. services, in demand to acquisition the but very capabilities is specialize part of in, which is complementary impact complementary mitigation about You the also

some lot we’re actionable that an put these now us to PFAS. part talk for immediately are is fires as to that our that’s area a started of out right And have not have know, of though by where compounds you strong. other us customers The it’s about,

I of very is CTEH response who of And those both is. question opportunities. is kind customer see the near-term becomes value as would so add. expertise The certainly

bit to As little risk little a more And clear. you sector. and the a is the instance private of liability fire on an allocation we like tend know, less in focus a

more would makes testing synergies, long-term. And so consider near-term anchor and there I And little that opportunity, remediation would cross-selling to certainly that the capabilities more if sense on is I bit as but you. a immediate the

Jim Ricchiuti

It does. Got it. Thank you.

Operator

are to time. at Manthripragada back for would questions I further no the call to like remarks. There Vijay turn closing this

Vijay Manthripragada

you Thank all for you of morning. us thank to you joining again this and

of Take your excited incredibly we appreciate what support. well. and and about future the be holds, care We’re all

Operator

concludes today’s This conference.

lines time. great You much for have Thank your and at may your disconnect participation very this a you day.

Montrose Environmental (MEG) 12 Aug 212021 Q2 Earnings call transcript