CHRA - Earnings call transcript Q3 2020 | Charah Solutions, Inc. 8.50% Se

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Operator

Good morning, ladies and gentlemen, and welcome to Charah Solutions, Inc.

Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After today’s presentation, we will conduct a question-and-answer session and instructions will be given at that time if you would like to ask a question. I would now like to hand the conference over to Steve Brehm, Vice President of Legal Affairs and Corporate Secretary for Charah Solutions. ahead. go Please

Steve Brehm

our Good to us operator. third and you you’ve to thank our XXXX questions. as answering Thank hope not, find We the during We press morning, appreciate joining that review sharing forward look the today. call yesterday a our remarks remarks issued your may can we for prepared investor and earnings your after chance you, the had and everyone, you prepared participation as quarter Investors you our well a the press release market supplemental presentation closed. or section If at website on release ir.charah.com. follow of in www.charah.com

Financial today’s Sewell, are Scott on Executive President me Officer; call and Shannon, Officer Treasurer. Chief Joining Chief and and Roger

the session. will prepared their we remarks, Following customary question-and-answer conduct

These we to Reports as filings Form described Commission, Those the would different I regarding the Solutions cause include releases that that from to as statements have press among these uncertainties be that on Securities disclaim that press earnings in you Private those quarterly actual meaning reports statements. in update to Litigation statements our Charah obligation could results materially well our remind including within begin, Before to forward-looking forward-looking Act. and are with are our release Annual subject others, XX-K. forward-looking our statements risks of XX-Q and calls. disclosed our remarks like include, in the our Reform we Securities earnings Exchange matters and risks conference and any Form on We

applicable release measure reconciliations certain presentation. joining non-GAAP thank and to you today. in refer our During this the measures. financial to press conference We call, supplemental us for Again, earnings will provide GAAP nearest we

Scott Now like the Scott? turn I to our call to and Sewell, President CEO. over would

Scott Sewell

on business our for and earnings be third review everyone. third briefly current for morning, and update transition our review It’s morning, our This the opportunities. you providing accomplishments, and pipeline I’ll Roger speaking I’m the again of to with us developments performance. our during guidance. call to join on XXXX you update on to update I’ll a you today. an an great provide on an our then our Good have financial happy quarter performance quarter quarter update call

continues customer We continue acceleration committed and to with pursuing have and market challenging sheet, perform fully to a $XX we COVID on bids capitalizing focus as strengthen opportunities our balance over are pending see this maintain ash of working we our And to team to an on well billion The relative convert of coal these the in activity debt growth to our pipeline environment. billion. reputation. and pleased industry-leading laser our reduce $X.X progress opportunity continue

exciting award making to We soon. some have announcements

customers Our expectations, work driven energy production third the in quarter and and meet recycling requirements. severe as ash primarily byproduct demand below by the decreases to Charah continue Solutions from utility in activity about their prospects We we our remain to resulting low Southeast. were for and with long-term near-term major optimistic results COVID-XX related hurricane remediation

contract over fleet-wide highlighted opportunities the initiatives. from by modification extension nuclear resulting driven in increases awards, As release, see to primarily customers announced the we August and to July XXXX. now our from expected significant in new maintenance our We press XXXX continue and have of new award Exelon billion remediation in $X.X

in new through remainder record last and Solutions outpaced have of will the that expect the segment XXXX. advance Environmental year’s our year and awards We we new awards for into significant

coal solutions, recycling through our ash. remediating Our to seek customers customized continue environmentally friendly and

the services. caused daily team of essential essential safety, by this operations, uncertainty our critical services period speaks and of our the customers during utility continue to and disruption high we our to nature of have for to implemented, resiliency remediation the provide plan, ability and and Our operations COVID-XX procedures mission pandemic

business We States. impoundment address in in level regulatory our to as than never expect The develop mandated and the their more United implement closures business growth has continue X,XXX sustained the activity been increasingly higher. opportunities surface utility ongoing development of plans in to companies

that In bid addition pipeline $XX to the in pending over have years. in billion our proposals, we near-term $X.X two billion an additional opportunities will next we

methods states work recycling of regulatory working with the permit on its Protection are guidelines as remediation, pond to their impoundment ash to discussed and own EPA means the Further, the states we’ve deadlines. becoming ash programs. beneficiation previous and more several on continues Environmental calls, Agency ash As prescriptive continues to pond and closure establish requirements,

positive Charah We for as see continue these Solutions. movements to

requirements the ideally situated to As partner by-product ash services for and and maintenance mission-critical operations, compliance added remediation deliver to impoundment of is industry, management their environmental and sales needs. utility full-service only services, provider these the closure the and company on utilities with

are offerings announced deliver solution. And to utilities, we’re attractive public the pipeline we increasing deliver providing creative turnkey are in growth to returns for environmental unique ERT solutions projects, successfully in utility utility our and performing Midwest. expanding we believe upper utilities Solutions. or services in with that with We also provide a We the addition ERT. to negotiations to while environmental Charah remediation recently our ERT Texas In project transfer to or opportunities our ERT by opportunities risk solutions a

byproduct sales infrastructure also for by remain driven spend. greater our opportunities, expectations about optimistic We

our As add of we MultiSource the and reach customers. continue materials network new to expand

time natures billion announcements official are $X.X our during in negotiation contract Our ability add and our projects uncertain the of pending expect of and and our several customers continue soon. new partners on essential to services. to make to new resiliency team’s Among awards with proposals, we to speaks utility this award

safe, growing services Charah with priority provides our a and to to COVID-XX country. As people in business. of highest the addressing our a committed we must winter needs our the remain central utilities to power keeping operating continue the and potential customers. regulate safety that an our season Solutions for head activity, provide into remains to customers’ uptick employees the We the

our well-prepared ensure we to to we our time. protect our want our And of to that service are thank utility safely. employees believe continue We during electricity. with am have customers way this to Charah I to the and partnered are utility staff our of again, customers I continuity day help service Solutions dedicated keep maintain proud every providing who working customers very to

others will Solutions Charah behalf to I of the our this entire gratitude express responders, address all want the on continue working current financial results, turn I’ll to third over XXXX and quarter first environment. outlook in Finally, our for clarity the Roger, sincere detail, who tirelessly discuss pandemic. and of more again to our expectations to who consequences it the personnel, market medical all provide team, that, in on our With more

Roger Shannon

September compared byproduct XX, million balance profit XXXX, XX.X% review revenue Revenue million the ended to services financial or the on million from in to our $X.X $XX.X Thanks, to components. results sales September three decreased September September $XX nuclear months decrease an as and for XX, XX, months million months compared our for a as XXXX million the ended Scott. our outlook. in three Gross driven XX, continue provide ended to XXXX. three XXXX I’ll a liquidity by decreased $XXX.X $X.X XXXX months ended three of and update for sheet, and with $XXX.X or X% the million

of period response in the in was previous $XXX,XXX million and the primarily byproduct ended to from resulted The a profit to compared in cutting transaction three XXXX XXXX, during months the profit ended expense, to and asset. QX the and the and April, Charah by impairment as costs We percentage to for expenses. The that XXXX, the the period. Operating to decrease offset This cost the $X.X XXXX. adjusted a XXXX XXXX to XX, for XXXX, decrease liability primarily ended pandemic net our XX, the sales gross the to loss in $XXX,XXX ended credit months previously in in administrative to the in current $X.X million loss EBITDA for three increase of of savings to primarily due a expense September interest an in operating QX primarily of for tax associated was in was impairment attributable year September purchase income million measures general attributable option decrease in The due $XXX,XXX income administrative million is option QX and $X.X in increases to facility. ago expired incurred related in As is purchase QX the lower months gross the later. XXXX. lower The compared and expenses. detail the profit in Inc. million expense discuss the to reversal related by administrative $X.X and three general was liability Solutions, general more the to in to in three increased months gross September XX, as current versus decrease staff period. lower implemented decrease ended improvement $X due months land to operating I’ll of of improvement expense, revenue, primarily income an partially September reductions, mentioned net attributable million COVID-XX million XX, Cost XX.X% impairment due administrative expense. $X.X expense was non-cash The general increased charge $X.X September XX.X% XX, three for expiration up XXXX.

compliance XX, decreased to was some has million reduced across compared by $XX.X and $X.X ended by new our by September result Environmental reporting offline in utility a customer XX.X% the customers. sale profit excessive for remediation XXX. work discuss The million to $X.X for project the or XXXX, decrease $XXX,XXX as revenue less sales of the to in within the rain. outage revenue also the services a energy Services, was severe for Technical profit for reduced $X.X Solutions energy generating months decreased a in to the offset X.X% and to as to decrease hurricane work component. by or September ash three maintenance new Environmental our segment has COVID-XX in adoption third X.X% pandemic I’ll $XX in the level. three to months million compared the sales. nuclear recognition In compared XXXX period production and XXXX. Solutions utilities. months $XXX,XXX quarter Technical major work The million our project resulting decrease primarily $X.X million services in ended to affected Environmental fossil production million revenue XX, Maintenance results with offerings our days less U.S. for activity the from remediation as mostly as or primarily less of the decreased Solutions or compared by our The XX, negatively to million to to also for to X.X% stations Services our million Southeast revenues XXXX. decrease was that due $XX.X ended temporarily attributable decrease The for revenue $X.X decrease $XX.X quarter available September XXXX, at standard took the to year. demand compared three last September at byproduct XX, quarter ASC to segment, million months was driven Now due attributable segment, of revenue ended profit a gross Maintenance in our in and byproduct $X.X decreased gross compared primarily gross million three our In associated

balance our liquidity and to Turning sheet now.

The was For total September resulting term debt had is flow debt and due third in million gross loans. was our debt payments principal quarter consolidated the primarily of free flow during positive million, $X.X XXXX, of quarter decrease $X.X cash cash At for on XX, CapEx our million. we $XXX,XXX. QX, to in $XXX.X operating positive

approximately Our of liquidity XX, million $XX.X was XXXX. September as

U.S. have our operations. ash COVID-XX work in XXXX the customers. address and has experienced of our we We energy utility a significant across COVID-XX I’ll demand decreased Though, resulted our that the to pandemic due at our as stoppages Next therefore onsite not believe customer’s of guidance decrease by the operations production the direct result pandemic nature update. critical

sales contract closure U.S. the hurricane the is this being customers, daily Southeastern large work hurricanes also We our under Southeast project, this volumes affected Although, the utility the byproduct expected. has during operations activities resulted in in activities several pond were with by third both than decrease of The ash quarter. activity affected at in the our locations. well in as work rainfall ash our customer production unprecedented lower our at significant production sales a resulting from ash as U.S. and

ash lower of beyond higher of to level creating uncertainty. going significant the see control, continue We disruptions as production business forward, risk as a well our

our based our million expect adjusting follows. business Solutions, net were guidance $XXX Inc. expectations XXXX reason, of at contracts. loss guidance and attributable and We updating of For We this as of for we of executed Charah our on this were XXXX time, $XX now XXXX revenues million. a backlog to

$XX We’re for of XXXX a for million. resulting projecting XXXX flow million million adjusted EBITDA the project. ERT EBITDA, our year $XX revised cash approximately from with $X in is Included and adjusted free of gain an associated guidance

pandemic continue to this worsening a guidance could fourth material risk on mandated no XXXX based the that, I’ll worsening back COVID-XX work transaction to customer We this government continues expectations pandemic, call Scott. slip occur turn to no not materially specifically, gain of the is affect XXXX. With quarantines. be of into significant and including, employee believe COVID-XX the Any but material will absences This our the no but that in no could in our outlook. that to there quarter, updated limited current stoppages,

Scott Sewell

position market closing, company Roger. advantage anticipate expected taking Thanks, remain debt for opportunities. growth to take We In long-term cash, expanding our continue awards long-term enhance committed to sheet ourselves the the while reduced actions health preserve on value in to positioning and and of balance focus contract to will success. we

Importantly, are initiatives, come. potential closely utility with partners, which significant many Solutions for provide should Charah our with remediation and we sustainability years growth to aligned environmental

partner awards, third along bring full in enhanced interest confidence of our session. expand successes winning our let’s And Q&A mission environmental critical operator, power that, their services our for the quarter generation the and services Our participation. needs. the specialized flexibility, liquidity to customer’s your choice and to financial with for These believe continue meet activities in to this remain We the new momentum. positive during our Thank ability demonstrate you of industry. we begin with suite again

Operator

comes from from Instructions] Stifel. [Operator you. question Your Thank first Michael Hoffman

line open. Your is

Michael Hoffman

Scott, down there. hope everybody is Thanks, Roger, well

Scott Sewell

Good morning, Michael.

Michael Hoffman

will there. Good has cadence until. or doesn’t quarters morning. Roger, two Has happened? ratio get But I So on about flow the are think XXXX at an LTM looking questions and the we given the happened we that or are haven’t I leverage peak it in there’s when how already guidance. looking at of you basis, already

or improve we peaks as that begins XQ to peaked. XQ and is or that already it is So then there XXXX gradually from lap disruptions

Roger Shannon

question. It’s a Michael, question. peaked. great No. for has thank already the It you

go we’ve It’s times Looking net occurred down continually the into year-end going been of and you spring quarter. and X.X at closely our into reduced Since adjusted just QX And then, in of at the XX ended including actually March quarter the for back kind – XXXX. kind it’s and quarter. quarters September in have of know, this The this the it just the at about bank third times through group, over looking leverage with to X.X several EBITDA earlier year. across amendment peak XX And as leverage ratio, year. our XXXX. numbers, the June at we you significantly can past the working

Michael Hoffman

the we bank what’s So the since don’t based adjusted adjustment number have allowances, on guidance. the

So hit calculate of leverage? the to million, do you $XX we if that then to what guidance add

Roger Shannon

X.X. I Michael, around projecting think, we’re

Michael Hoffman

is the Incrementally? be X.X So leverage automatically. or it X.X would

Roger Shannon

at ratio that. year leverage end on the based Its

Michael Hoffman

commentary or contingent because taken there generation their of more the to is should it by the specific about question, your by a state energy buying on Okay. attention matters who’s Scott we electricity power? that that model? pay generation, is the the or this in are Then state actions And reduced that it to level States

Scott Sewell

Yes. Good question, Michael.

cycle through as thing a downward a of the really really pretty on we lot just more of combination offline. of just regional kind of across plants not hit was well an the both demand. focusing hard, got kind have COVID, there the But necessarily, demand and region, the a coming taking in but geographic a as been of from we’re and it’s that drop hurricanes it it, Southeast a a of the trend would if view we or board As I say, area

Michael Hoffman

And when are what Southeast, you that in this, say States list?

Scott Sewell

we’ve would where necessarily in we is Arkansas, into going which point the Texas, foresee I this don’t significant of to, we’ve year, got operations country Louisiana, seen some Well, area XXXX. fully impacts that

Michael Hoffman

there, South awards to grown there’s Having had up XQ up million, million. but hairs. in $XXX number generation, call in big to the splitting like is regards but Okay. $XXX ERP with the then the in them awards nuclear appreciate the I think, South, too, And the I

– expecting that at million to a you’re about next awards last million, And $XXX-ish means I least of you’re running year’s of So beat XQ. $XXX sort in goal, at think.

Scott Sewell

Yes.

million Michael, number, but million and that not I – was in several got then a the seeing times, the hopefully, we’re spoken will, what of Exelon we I notch that we’ve several said of where remaining entire billion believe that, lot, component the extension. think of good extension, leaves to the And we think year. the proposals do number So $XXX last all company nuclear vast a we’ve pending ES segment. was And believe, the about it think, out we of number $X.X like was if contracts majority was have was ES carved Exelon the and $XXX we you over a that that it

couple the the billion back I extremely well as of work right excited as have the see billion that pipeline years Environmental future we segment $X.X now, $XX the next mean, the Solutions of higher work to it business, that come. be So in now. goes right for pending of to enthusiasm we’re the couldn’t in we

the awards can to some in There’s well or early Q you’re QX in our focus early where significant as to put – our right. be really business, that’s XXXX. because we opinion position continue try and So as there

Michael Hoffman

XXXX capital or spending XXXX, least then, enough. in we less? similar Fair but in neighborhood you And haven’t Just on Roger, in spending. are know we capital I are guidance, at gotten more the directionally, right so

Roger Shannon

Yes.

lease to is update of We have been in we back more as that haven’t of utilize able kind to an adopt operating come new really these standard. strategically project required will going effectively company, – be with we keep new XXXX. mind to We just and leases. It yet growth by the on emerging awards been driven

to avail lessor So able get in leases, cases, and attractive tax to we are the of the finance of and most that we benefit very to cost. still keep ourselves gets the of operating a rates XXX% get

So we would general based probably But we’ll equipment and capital continue statement kind say project decide is evaluate basis. that this roughly to of and of where as on a maybe monitor that by equivalent a operating kind be opportunistic between we are it’s we to project financing. leases year. I leases,

Michael Hoffman

can’t I All whether And Did those? did, for take me, will And right. remember get of PPE any did you on advantage forgiveness you didn’t. last you loans? or you all if

Roger Shannon

loans. not did utilize any PPE We

Michael Hoffman

Thank Very much. so good. you

Scott Sewell

Okay. Thanks, you. Michael. Thank

Operator

Michael comes America. question next Your Feniger of from Bank from

open. is line Your

Michael Feniger

Thanks Hey, for taking my guys. questions.

Scott Sewell

Michael. morning, good Hey,

Michael Feniger

everybody. Good morning,

starting to year I kind I should guys little how just with of bit thinking going down declines. these a softer the right to Is seeing segment you’re and be through was churn. you of So you up XXXX, awards that implied ES are mostly walk and with thinking the start XX%, you be before through with – some guys Maybe revenue we book now. should to thinking big give we guide, be of these ramp kind what a sales

a there. But how and help of this quarter, out. off QX of the of like because with, things first kind guys just kick then like, So that from of soft, bit kind little off me is kind we into bleed you laid have ends

Scott Sewell

ash take Yes. the on to sell. demand, sales to Michael, by and going question are sales have kind the production that one. driven byproduct Michael of that ash side we kind I’ll availability Hoffman’s of It’s the earlier, of really energy

probably, XXXX independent dependent guessing and [indiscernible] you with we’re that is So associated But into if byproduct the going And software timing a is awards of about awards. be sub-segment, of our think of timing that. little going those division bit that’s on that maybe from the to in ramp the QX. the sales ramp

early this years growth I we after. at go confident time, tell very to too in XXXX are So the and at that would and year but

Michael Feniger

that for if missing or business That remediation, I believe sales your byproduct I so. I sense. mix, was there byproduct in assume, positive And be your margin sales am is or the I higher makes when but margin gross And XX% that like down that figure when be would speak would I something a would odd ES business? about significantly. like

Scott Sewell

Yes.

the really would seeing should forward. I we’re we’ve for just But just mixed least past that But think, at issue. quarter, of it’s modeled of the hold a mix way kind really I thing. now right this that the it’s say movements more theoretically, true that going in a

Michael Feniger

the It’s so we byproduct, mix, on XXXX… okay. just And think when then of

Scott Sewell

when ES that, higher saying byproduct mix the yes, than mean, saying margin I’m clarify – that I’m typically sales is To side. I the a

So there. a drop margin we off see compression little that be

Michael Feniger

Okay.

Okay. That sense. makes

Okay. right. That’s

maintenance perfect. at revenue or or is just you of X.X with is it talking just growth MTS your about between I from know based – can’t the that. higher I your I on in the fair much yet. be it then is two conclude Okay, And – services, revenue it and at it’s more, to look bookings. guys comes XXXX, just how XXXX The, not when what mean, like, going you’re like, to growth I businesses say, think you

Scott Sewell

No, Michael.

nuclear side – in out it years. we that and and tried extension the in to release. qualify press highlight a is I think this award growth the That new really and of and it’s on kind that think I

have now, impact from XXXX. XXXX that you was the shouldn’t to it on modeling right have extension much So that

at business, think you be cadence much of your about there. normal the shouldn’t change as So evaluating XXXX, there all

Roger Shannon

per terms of on side, outages that XX. this of is Michael, very the the is there nuclear This we year. Last mind had year, XX. predictable, – Roger. were in year, in the Keep number it

in recall a of X the season. majority spring we that You those performed outage

through outages So is we’re you four following in then year process next the back have the and year to flipped XXXX. of going XX fall now, for the schedule XX the

that the are that know, bit predictable, more business. cadence lower gross So is you but on a margins as

Scott Sewell

testament Yes. our abilities and especially And years the perform great that last teams year COVID just a challenge outage I our to over for to will fantastically. say they’ve this And work extension during customers. was the of several and performed our

that, to as where was focus So but great talked our it about growth true the testament the E&S focus a far as side, we feature and bids where for the continue reasons as all growth we’re pipeline. business pending really for is towards and just the look are, drivers we’ve the and on positioning

Michael Feniger

That should equal right, year And said, to next actually makes Roger, be XX XX again. there’s sense. year this that, you and XX,

Roger Shannon

right. That’s

Michael Feniger

guys see the could guys. the just cash up you hoping perfect. okay, what ramp to this to mean, side. curious up going But your on we’re ramp then say, I’m about the or view flow And ES you Thanks comments year. are free of what were positive I

– I kind Michael’s offered million, think number Hoffman’s question CapEx. you up, is the the of question $XX about Michael

cash how guys right trying the think working of, as require guess guys a does up, side? I know on now. you on flow the use just guiding you’re – certain used cash on you is capital. for the swings that that capital work up As projects, in to not ramp cash working I I’m ramp

Scott Sewell

use. I’ll take goes I and No. more put projects. ourselves to kind to changed that, and our of advantage continue proposals proposal cash drive a really provide go as value focused the sheet, a the Roger focused and our we on more think the back And way And have when It’s and on balance we’re answer. not I be we’ve in make the short through business working these be it tried projects. the that to transform capital process evaluating to to position working of to and really sure customers

in least more sure always putting day that at making sure a positive we’re we’re cash cash that’s ourselves but one. position neutral, making We’re that from importantly,

working you want to that using that. add not we’re do So Roger, capital. to

Roger Shannon

Exactly, right.

the that reflect. that’s approach, we cash think, positive kind that’s to really are and Okay. of accomplishes to about I lot what our in reduced what We’ve a bid important be that we’re talked working disciplined of it’s bids process and that past, achieve. we And the

Scott Sewell

out future years I performing. numbers you’ll And see in that and bring as on work start think work we the in

Roger Shannon

you of And orders I record Okay. just, mean, last number year. have guys book

You’re kind this your on kind were of slightly target year. record down for of another XXXX. sales in But

last just as year, you on this the are P&L. So see growth orders orders over it XX%, year, we trying record just kind the XX% square guys to I does conversion with, orders amazing and sometimes these timing next since happen of these of another I Or booking strong you’re guess year I’m longer this of when of up – a it booked period really time? pace when revenue mean, year? Just is to like, inflection to ES next year. had this is is out massive

Scott Sewell

Yes.

thank And you So I think you’re that. right. for

as this that and – exceed But We record the that had working that And a year our we’ve in opportunities disciplined here. projects duration, on of contracts that point de-risk your sure got hopeful make and year. to bookings to XXXX being said, inside business term, you see and the that, of P&L, wheelhouse as we’ve predictable also you more and not are do is what growth. on we’re being you really Roger’s longer to going transfer to see – last we and to point we to very kind start

progressed XXXX. grow and and It’s growth. spikes these and in right as contribute ramp deliberate a not We’re seeing very plane projects our

XXXX, predictable So on each layer revenue each see other it we’ll seeing top by we’re top we’ll And XX on it’ll awards and now of roll stream of those related of talking but right. of see to COVID be nature. us. we’re years, for those XXXX for all bit a that through new then XX as in that we just years growth projects long-term very other, a to starting And beyond, stuff, here stack many kind in as nice offset about are five little

Roger Shannon

one our add pertains from to Just the to comment some to in in alluded production decrease and ash press it, release. It we demand, lower energy demand. the

ash an And available other replacement the [indiscernible] in actually green the market production imbalance opportunity. things of or is that, to decrease not in spec a for spec we’re On the concrete flash supply ash demand of cement. demand fly decrease Portland and like exacerbating between the side and the increase be or this seeing used

and on we’ve accelerating course focused has accelerated developing last the been beneficiation our opportunities few MPXXX really that So the of months. over ash

We’re demand announce close but but the Western to much one, other in go where in look able to that We friendly one the hand deployments. there tremendous hand aspects on much, recycling. of opportunity of environmental see to not of supply, U.S., is a with kind the given remediation accelerate less as particularly, opportunities hand, And we at, an kind well. hand, very as being increase they

demand. our then that ash remediate can go proprietary using and and technology to we meet in MPXXX market recycle So impoundment and that

we’ll are of advantage given into So that that work – the have imbalance. really we XXXX, we that’s those something take but that lead accelerating of factor efforts supply-demand kind and just time, won’t to

Michael Feniger

about for with of bumping or for some kind of for bidding smaller over more or and Fair – of into? to the and Bechtel, found guys you is of who I remember to And really a than I’m a curious mean us to clearly normal tighter last had complex, sure. before the out kind exactly guys you help how or little Is private I’m you bumping competition? understand really waste or management the bidding more to just talk somebody of Jacobs you’re of is so, pipeline. who into environment some Do a played has contractors? conversion, XX curious or these it are projects, projects? are the see nice it harder And for these this you trying kind business. sustainable the have I more enough. in some you there you guys converted more if bit off larger get contracts, de-risking that terms the months

Scott Sewell

Sure.

the months to is think couple go several I some last now over nine contract difference a year the to RFP seen is signing months with What it. just to to in is the cycle, to take taking associated years biggest cases. a six from we’ve duration months bid the

When So type seen to at from biggest the – mentioned. that’s pressure you see. larger haven’t competitive E&C we really we the just that of companies those really that the change extent, the landscape, I so we think some look

we And have. on if have a we talk that and sales Charah suite some have that very you coast on to the large see it’s across regions, segment. look same each We natural see well, in modification competitors with – and by offerings fragmented different are There’s them at maintenance byproduct that business the really, byproduct about service services a But but very side. no continue to you of national pure geographic compliance there’s remediation our lot the it’s competitor work, the our But to that across we similar We least really offering. independently, see as side, country. country. of few at geographically when really, ESI players fragmented. the more then select There same of sales. again, and coast and to very, the And

Michael Feniger

year, case, know keep the curious is is I’m by end the like and if deadline first I quarter we CCR half have a but on that just kind you just you to time, with some trying see with it’s something as CCR, if could out, some that make mean, driven right, that level. there month a this – this week. Is state an month we at just mentioned could of the of orders. this something I Scott, and know I that if that of this the if a the And slip deadline, eye guys we’re elections, Is with and all conversion, into CCR a big at election of last more sort the is go, from kind ask month? I to the of only QX don’t order and next these should maybe after

Scott Sewell

Yes.

really technical with the really or the to about, see online a don’t I’ll It’s an about calls provide on question so So we’re that’s one, their that that. I we the service any to talking the any utilities we’ve first for relative deadline. allowance demonstration November technical, associated take And think of allow impact first to spoken work to these alternative impoundments.

So and think it’s their I of the can kind of a about you really if but and they it go ponds that of small a only, of overall kind be it, a where can alter that’s remediated. liners affects they’re offering. the segment need that read process to two-step universe online lot of very make calculations sub alter – comments And some

of and impact the We where utilities lot here about last the And where this the So now. mandating are now, very the they on see at is from to our really should that’s we believe industry, any or any impactful nor I then our stated stroke and of talking at And marching to we quickly is we’ve what really that is week kind my remediate means and federal impact how path going changes we that they think at traditionally in as beliefs And – pen, more stuff see think of back federal them. something where that happens down it should happening is than anything don’t in points definitely I happened four And risks side level, to, not election, a that also will what as solution for to the methods think they’re right we’re relates definitely path support of any our and or I from regardless multiple do now. right regulated the that level. our to years changes of regulations, focus it level. state strongly reasons. think, the for set the what that these very customers environmental or we’re

impact we don’t or see answer, that anything into build anything we don’t So any that. short that, outlook into like feature our

We’re sit now. right of we very confident where

Michael Feniger

And on have just anything do just eye your due me, – sheet to did lastly, balance for? and you you the remind Got keep Can on we the side. credit you guys challenge Roger, next lot a maturity, big when of is there a it. think I big an and date work that

Roger Shannon

there’s No, forward. normal scheduled just going amortizations not. It’s

we talked – debt scheduled And the debt So year, of previous beginning we year, basis. continuing at heavy on significant the of this to the as a down repayments, did you question. in point the out about just did last pay fall made lifting

You year-end significant our next see leverage into across decrease will a in year. going ratios and

Michael Feniger

All right, bye handling guys. my Thank stay for and you questions so all much safe.

Scott Sewell

Sure thing, you. Thank Michael.

Operator

from from Your next Robert Chow question Investments. Fidelity comes

open. Your line is

Peter Lynch

This Roger. is for speaking colleague, Robert. Scott, Hi, Roger – my Lynch Peter

from XX than leverage. that’s just did contract to other another XX lower XX and you congratulations the a then for impressive. next on And power price XXXX or that Is So be to year, said is And was power and revenue size you nuclear company plant? Exelon to there Or the plant. And was power Exelon the to going in has a look XXXX? the one that item it want at what was XXXX of that? just equal

Scott Sewell

the the addition, relates customer talk announced thanks and appreciated. it work, to we additional $XXX in morning, we there. quarter, comments the Much for the But last million about earlier good had. the Peter, nuclear we Yes. that as

a of value a but customer, given if no XXXX, even impact to on or in think impact little about contract that it’ll that more impact bit have announced a haven’t really but XXXX. you XXXX, in We it,

Peter Lynch

larger Is significantly – plant XX just it the when nuclear plant. a other it is that, than the it’s larger one plant, plant

Scott Sewell

correct. that’s Yes,

So and it’s facility have not to itself. we the with that all but entire the suite, significant Exelon, a size of associated

Peter Lynch

those XX that get of takes build a when once – or a you And wrong year something. I one would happen the to though. to it’s next contracts always days numbers then would have or MPXXX, hope in the

Scott Sewell

nailed – intents, do Yes, assigned in numbers you get the already cetera, a very an we quickly. but order. hand in well, the order it, have MPXXX, letter right have it. you to a We with Peter. It’s here expect et

impact on expected not to And have on any comment It We’re Roger’s the beginning we’re here it start financing on now. right excited hopefully will earlier, XXXX, have very the would and working about XXXX. of impacts XXXX. it the but in

Roger Shannon

number kind And follow-on of opportunities. of Peter, we’ve a identified

As it’s we not supply We and opportunities. geographies one that, a I talking imbalance demand look is was about. of number that see just at that this

to to continue quickly move So our plan after is one. that next

Peter Lynch

on. Would one I done, is have year to you other – other finish did the you to one get just, hope before first the you And contracts [indiscernible] hope have to first mean… before

Scott Sewell

absolutely that’s and Peter hope strategy. our

We yet, have not that yes. quantified

Peter Lynch

project – the Those and finance, cash profits – there’s they’re from the – share utility. are not so you no the finance with

Scott Sewell

some offset to the will there area. competitive kind of on or revenue depending that be the one sort or stream are Each of market a utility. in be options different focus back we an But yes, of the costs would providing

Peter Lynch

It’s the for one all in one great in of place concrete. the time It’s Portland the great savings of like – the the cement reductions in COX and country.

Scott Sewell

how we it. That’s Definitely. see

Roger Shannon

Yes.

Peter Lynch

in the find you shortage California, where you about is West or is that Texas a then and West this, the the there’s is the think. the And supply talked that West Is demand I or West. in hell

Scott Sewell

really – on question. Utah, early where’s to West, is when Similar the Good really primarily here. potentially when and there’s you the the of the some California speak Nevada Mr. deficits South. And – Hoffman’s significant what West, basically say I’d deficient. say, that deficit a extremely question West, mean we Arizona then kind we and we at West look Coast, of having equal But

So we move forward.

So as that’s definitely well. Colorado

we West the West – of we say So the Texas to own, Texas, but anything of Texas, Coast. any West all considered I’d focused Texas, and really consider kind its on

Peter Lynch

as $X.X Southeast, in opportunities well it, remediation of or in in on I South, the West the this West those Midwest. billion mean, the the the all that bidding you’re for, And of any

Scott Sewell

think in call remediation, about think out there the Midwest few Mississippi. and Coast, when the a the have about we in Southeast We East West, but it we of the of kind remediation more the primarily Atlantic

Peter Lynch

don’t they in then don’t they But you West have – ponds ash called there. was have or and out the

Scott Sewell

really water high Coast, of what’s landscape, the some kind the in look That’s in remediation. to have Atlantic really here out driving They they’re are but at level they’re the else. and Southeast everything ones the closer there, of with the down and priority the where ground you predominantly South priority but Peter, here if

Peter Lynch

the was Whether when for their plant ash? if I’ve it do world, power that where biggest the been Congress they do at all

Scott Sewell

Peter, that Can again, sorry? you say

Peter Lynch

ash? that’s plant do The they power the in their a in West, four that the biggest world. ash They pond. What one it generate all plants have of there? Does corners the do

Scott Sewell

that got that they they just customers ways or several – like there’s West. So for that their – they’ve in don’t could out opportunities ash. manage others say potentially would them that I the I there be –

Peter Lynch

is to that is big started money, how you a one your time. you pay don’t taxes have for making pause, when NOL, And

Scott Sewell

mean get It’s the I Yes. adding you this current number. we’re year. to I bit a it

$XX I think to don’t I $XX know around, million million area. we

Peter Lynch

The pay Okay. make you next zero. million and to million $XX $XX

Scott Sewell

offset. would taxable income. of million That would offset to or million $XX $XX income, That net of income

Peter Lynch

who wanted more to for after – ones over are the the nuclear is be so on hours. able the you couple out next potential win years, wins unnamed, And new there other there – a you might somebody the the there

very margin, capital and it’s but it’s light, light, predictable. capital it’s So great not a

Scott Sewell

we’ve that’s definitely margin. ES it be capital again, as work remediation as opportunities there as pick may see a real byproduct sales here or we side, But definitely new be on It’s growth to Yes. and there the the continued work, work to is present growth, But drivers. opportunities really as far growth up light, stress low the whether the themselves. where

Peter Lynch

If performance you environment. positive kind in people of other this some so difficult do can well and didn’t or Exelon citation some get from

So do would come think for advertisement trial? to a nice that you be

Scott Sewell

by performance our definitely advertisement is confidence a giving good teams It’s Yes. force. us of our the customers of and extensions our

Peter Lynch

win COX, could can you’ll minute. when bring you take could more no nuclear you’re little have power of not you turn outages, down some, you – should you if take very And plant power nuclear to going those, Is cost. a more

Scott Sewell

That’s right. No, work. not down definitely we good turn

Peter Lynch

that’s Well, done. XXXX We well okay. Okay, before XXXX XXXX. the and forward to and a look

Scott Sewell

support. so way, Thanks much. Peter, you thank the for the So

Roger Shannon

Peter. Thank you,

Operator

question Hoffman Stifel. last from Michael Your comes from

is line open. Your

Scott Sewell

Michael. Hey

Operator

Michael, your open. is line

Michael Hoffman

the divide of rule just of… award Just as incrementally number that a each way kind This two The to still I use of quickies. by add by thumb sort six. years can is six, and

Scott Sewell

Yes.

Michael Hoffman

the Okay. getting disruption that And Are unit leverage price fly helping is unit then the any to of you ash, price? because on there?

Scott Sewell

make question, about sure talked six. up we’ll me I Let the we – dividing we’re back for guess second by

talking the We’re correct. about ES work,

Michael Hoffman

a that divided that this like map by see million XXX of did year sort can six if divided if kind out, $XXX and again, out. it X, you map And by that Yes, XXX you and of this it year so compounding. did

Scott Sewell

Yes, yes.

Michael Hoffman

shortage Yes, there’s okay. demand, but because And then upside product unit seeing shortage. the byproduct are of and any we price

And so you’re getting better unit price.

Scott Sewell

little we We are are are over increase. a there’s areas in places of seeing There yes. seeing some that that under but the supply, supply, regionally, definitely prices

Michael Hoffman

Very good. Thanks.

Scott Sewell

Thanks, Michael.

Roger Shannon

Thank you, Michael.

Operator

There are presenters. no further over back the to questions. I’ll call the turn

Scott Sewell

everyone And you. you. next progress look you, today. you for again, our call. Thank call the on during our updating earnings Thank We to Great. joining us there. forward thanks We’ll operator. Thank end

Roger Shannon

Thank you.

Operator

conference and participating. for that’s today’s Ladies Thank concludes you call. gentlemen,

disconnect. now may You

Charah Solutions, Inc. 8.50% Se (CHRB) 11 Nov 202020 Q3 Earnings call transcript