ATCX - Earnings call transcript Q2 2021 | Atlas Technical Consultants Inc

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Operator

Hello and welcome to the Atlas Technical Consultants Second Quarter 2021 Conference Call. Currently, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] I would now like to turn the call over to your host, Mr. David Quinn, Chief Financial Officer of Atlas. you. Thank

Mr. begin Quinn. may You

David Quinn

close you our can website a conference release presentation quarter that be market earnings in our support call, in joining I Thank issued have hope which posted the earnings found second of call. our that XXXX seen the at note section this for oneatlas.com. you also Please today. of after we have Investors

statements I'd like assumptions Please include to remind Commission, our today's recent strategies, and that plans, could may statements to And a future Please the are any We note and Securities identify see begin, which affect you with forward-looking and that actual results. call expectations, variety and statements. no reasons, those our from assume for our the our of such we of filings differ uncertainties anticipated Exchange many principal describing which the forward-looking obligation statements. forecasts forward-looking risks goals, beliefs, are company's Before projections, may prospects statements. by that results publicly business, control. update forward-looking beyond

measure. EBITDA addition, adjusted adjusted reconciliation In be providing adjusted and non-GAAP net measures non-GAAP measures filings these will of directly today, our EBITDA, GAAP adjusted income most discussing financial and release see comparable EPS. including a Please certain and we margins, for their to

Executive turn questions. slide pick Officer open and who update. of At and four. to on our business Joe agenda on will up operating Boyer, for to call before the slide discussion three, our outlook I Joe to over I results Chief we today financial provide our Moving of the call an joined with an this am point, will I'll up give the the our overview continue by

Joe Boyer

natural drivers us. I the to market our afternoon be seeing seen good participate for be I've I’m my This had years, my tremendous for into exciting an investment in time we're and truly opportunity all environment. that to David, may it. the Things investors. to aligned welcome produce And best is demand In renewed and the haven't excited career. of Atlas leading XX-plus you, in Thank this in. And in infrastructure aging entire

many Our the ensure sustainability private Atlas X,XXX-plus working Facility public and range investment just Research Sanford quality, it's company on the South at to teams capabilities. projects on the impact across represent are is demonstrates our to Neutrino built the hard purpose-built nation's and where country, which And one the Underground critical I’m complex, in of Dakota across world. longevity the such mission-critical in a our our as infrastructure technical expanding of proud and purposeful US, projects environments. making our natural associates

the perform, only which value for today, reinforced key detail not but Now our three our themes, the work I'll we earnings also and power creates shareholders. the of that purposeful business

solid through results First, positive our of margin integrated the the through record XQ acquisitions. delivering cross-selling and of revenue the by platform execution our Atlas growth predictability teams, demonstrate

the provides growth XXXX beyond. into outlook and work our to strategy, and private and end federal that And confidence in lastly, all bill. tailwinds by in infrastructure and macro to those is our contributing Atlas win strong are markets to our expanding well-positioned the public integration second in to are record our areas in in and being focused our half growing addition and successfully service proposed consistently advance which acquisition are Secondly, ability in backlog, and propelled that

with nearly execution quarter. in as our demand end had teams acquisitions to market Now X continued Thanks let's the planned. continued please, discuss for to the year-over-year by the turn services. slide performance the growth revenue pleased our highlights of results. very and with to We performing our I'm second the strong XX%

Our another adjusted roughly contract and as with backlog tremendous of which at new $XXX awards XX% added in increase million line We another had was that million was pending that record our to winning backlog. in expectations $XXX quarter $XX.X execution have are was our to EBITDA an year-over-year. yet our work up million with to yet be

did of and Wob show and and some results our continued end deliver Adeline beyond. growth ourselves second of Our increased sluggishness the COVID. plan increased and in market impacts the public positioned the momentum, in [ph] year to markets half on We profitability execute

discuss secular acquisitions any the time tailwinds continues I’ll to benefit by a to strategy driving detail strong acquisitions and that career, in piece key quarter. from accretive markets and our be growth M&A and exemplified our second greater during deleveraging my service we are in of areas. growth Our AEL OSG these And the Unlike of shortly. continue

assurance us compliance Our keeping upgrades building investment the Recent bridge is life. code driving higher and plays extend monitoring aging infrastructure curtail and growing requires a to critical and deterioration tragedies and further safe, quality useful demand their regulatory necessitates environment. remind in us asset of to all for which importance safety collapse

outsourcing of and impacts continue and to Atlas. And like services and environmental, and state growth for and companies governance growth assets. social the in cities has increased infrastructure demands assurance to by DoT, quality societal We see on ESG of awareness project municipalities sustainability for

employees, for buildings, future. looking sustainable protect operate, in a to their build more Our clients and healthy which are

infrastructure in contemplated drivers, of we're well our of in positioned is Atlas, macro core in and bill, these the investment accelerate which potential in benefit bill addition, Senate the just infrastructure. to passed vast offerings large the the innovative look want for service infrastructure current from arising from any and of to markets to forward exceptionally and incremental include spending government education passage the finally, the addressable, to a deliver federal to part effective In bill, and the them has to bill. And partnering and array the everyone, the water trillion a solutions. Atlas guidance We remind our from does utilities. transportation our I expanding to for support our with housing benefit investment not dollar clients

Now name to a Utah, on transportation Texas, work micro are recently seeing level, Georgia, in and ramping few. a California we state up Indiana,

planned projects significant Some and QX QX. for in size takeoff

New like of in be showing of water state revenues federal work general, of increased Please in demand the York, planning lower and supporting Detroit Boston are expansion. which Building signs for education highlight the X. interest showing signs increased third over getting of Environmental rates. New quarter. to half increased activity Solutions has and to our to federal in Sciences stimulus to Group, increased our funding turn I’d a project Slide Services, second slow and finally, the to level supporting get services wastewater and started, the And in continues

educational touches proud markets, drink, and to have contributions safely the to populate quality. and of environmental ensure the and construction flourish is includes and quality analytical necessary, Our with work in of all is buildings making children This they and we’re healthy our and water safe learn, socialize environments in. done testing particularly when of they it these the sure

like ESG commitment to our highlight Now and progress. I'd

port the our by and is connected work. of business inherently is Our ESG environmental key sustainability responsibility

three systems sustainable and Our and community. key equitable providing finally, ESG resilience and focuses safe pillars; inclusive strategy diverse, and healthy infrastructure, really on

allowing land the and testing, capabilities, Our us environmental environmental goals, to compliance quality. analytical our planning remediation achieve various with water are and central resolves concerns key our to air, solutions clients that help associated

of company advancing our our and This commitment our inclusion, Officer heart-led and corporate Now inclusion core our governance, and the organization, a serve diversity values the culture. as efforts. I Council, demonstrated Chief diversity forming to a as appointed Leadership Diversity foundation to dedicated

Research Employee that seven Group’s of launched also providing have and We a foster community, belonging, network support. sense

CEO for company. coalition. to to beyond the part I've Diversity important It's I've Inclusion Action reshaping my our in CEO, the pledge also this joined lead, for as & me future As taken do

wins, talk geographies. and key another saw in particular across in environmental enjoy channels. large our second number address awards solutions a and me our an about of incredible let highlight all services and Now, and PCQM strength of sales winning wins. We new We quarter some quarter major

well capabilities, As turn infrastructure growth reflection which offerings in effectiveness the slide client and the future predictability. strength cross-selling core future winning enjoying backlog increased in are on This our demand work, continued drives these diversity X, success our competence our you of services network. at service into of our we direct see environmental and The can for backlog, plays and our to growing platform, in capabilities of earnings. to in and integrating expanded our is then a strategy our and technical acquisitions, is it revenues,

April, Moving to New XX, slide we were during second M&A added our New growth with to markets of In in quarter. AEL expected acquired Jersey. York align accomplishments to and key the our we

quarter. contributing As expected, to our results is and solidly in began performed the second AEL

which Northwest, environmental for OSG begin providing at OSG services, rail, our in expanding the focus the We quarter the and June, the is growth Pacific quality in specialty solutions. XXXX. end also of to us, our of a and assurance results contribute close presence third instruction area strategic of unique and light will key acquisition

our We proprietary about as it pipeline, strong, are to the prospects. excited continues very be M&A

on and for firms well infrastructure. alternative regional experiencing focus strong to offering performing creative geographies continue We growth, in population funding

focus to continues drives which integrated cross-selling strategy growth. Our technical on service expansion,

of M&A call cash creative And the with continue net over mix that our I'll David. turn with progressive deals reduction We to of drive the a and to will that, stock funded strategic leverage. continue

David Quinn

for slide deliver very XX. another of good increase and are turn and Joe, predictability grew and Thanks, quarter to the business. flow. We Please to cash growth afternoon, and revenues margins everyone. Overall, pleased we

to we included contract, million is $XXX Our with bright, as reported. term backlog, continue the our pending in recent longer not we grow perspective awards, million yet $XXX over

we external million demand revenue $XX.X to cross-sell of capacity expanded XX.X% we XX growth work. improve busier EBITDA we sell constraints and was quarter. utilization and revenue represented driver as acquisitive labor we move of prior the $XXX.X all cost work double in and prior XX.X% is year gains grew our perform the some contributed offset primary helped to into of have of quarter. by consistent enter wage and the businesses clients from which jump the during the details EBITDA year gross revenues quarter, across larger services see continue the approximately offerings. our service of our year. revenues, of programs and Now both prior strong solutions in was strategy $XXX.X quarter up the portfolio. prior delivered for represented to year which for with up rates, quarter, notable Adjusted realized the many ensure XX% XX% to impacts our over the basis Net feeling organic as internal revenue are as Environmental mix, of We saw net the million points even million season. of the XX.X% project and up and onboarding Higher resources Like gross projects period digit recruiting met. our to biggest workforce driven more our were compared growth, We execution

For million quarter the produced quarter year A prior versus bounce we $X.XX $X.X related second $X.XX share Class differential and periods. XXXX, adjusted the with between of to some net of income the adjusted in EPS

recapitalization to quarter Moving as February. mentioned Slide last following in XX, we our

to than business. leverage net We to plan have reduce a less for times the focus three

We quarter. these to lines we growing accretive continuing strong organically, the up business $X versus prioritize cash operating will flow M&A almost XX% our this prior and were generating to cash year pleased generated and Along to accomplish deleveraging have million by of flow operating transactions.

being than paid while down grew net more quarter, cash deleveraging a liquidity by EBITDA over by half our during We revolver minimized adjusted of which out, by debt our reduced ratio. on the accretive XX% year-over-year leverage We last also XX% and design quarter. acquisitions that million our closed with two and We of organic. $XX expanding

year, goal end continues right line we volume our reduce the to with positioned three while further than of to on less times. remaining the X.X our second with XXXX are in increase in to business by half year approximately ultimate net track As leverage expectations, times well of

Moving to our outlook. full-year

quarter, the talent Joe coming during with pandemic economy we mentioned, in inflation for heats ongoing as to sluggishness competition As back. experience addition wage related did some up the the some

range million contracts new approximately Given reiterate our some we mitigate however, we a $XX don't grow. from be XX% in price time in There recent this, This guidance of the our visibility is range the see the acquisitions. the to we in as our adjusted and as businesses, of actively on increase million contributions margins EBITDA this an full-year of current adjusted steady million, our at backlog, from $XXX would reimbursable QX we I the from to for continued seek ones. million. projected $XXX near-term implies XX% rate longer to to to the this results. Separately, continue $$XX the full this issue clients relief the midpoint XXXX This EBITDA increases the compared may and pressure our Revenue existing to year on which work, increased of reflects businesses, cost is we XXXX. strength term. timing run lag outlook a of to With highlight

at we rate AEL Looking of million run to an forma basis, adjusted upwards XXXX, on assuming EBITDA closed $XX acquisitions $XX a had and pro OSG Xst, on range million. January been annualized our

will slide deliver you. remarks we to flow second to And turn back addition, the half the Thank on In step-up the the for now closing year operating I'll in to a of call improvement cash Joe first compared XX. half.

Joe Boyer

you Thank Great. again, David.

half steam the QX gaining and alignment becoming complemented of on public the extremely since organic and company. for to lines to forward are joining the you, of the now once well-positioned proud this infrastructure recovery additions delivered positive in commitment Q&A growth, business power efforts in the I business strong deleveraging our believe the second strong can continuing AEl the continues deliver solid open of We margin again We by our Operator, again, of nation's market continuing ability to performance growth and believe sheet. has we to our This our We validate and the are balance results firmly years to for and and look investment. earnings our many of tailwinds. I OSG. us. a come. rapidly model all organization particularly, to national continued to growing momentum while economic please. our our key performance XXXX Thank resilient remain all capitalize and accomplishments in

Operator

be Lake question-and-answer comes Brown conducting line Instructions] Capital time, First this with [Operator Markets. Street question a a of we'll session. At from Rob

your may You proceed question. with

Rob Brown

afternoon. Good

Joe Boyer

Rob. afternoon Good

David Quinn

Rob. Hi

Rob Brown

your how see and programs to in these how want flowing you flow quickly Bill that work and can the get if approved through your experience just and on it the I gets past through on Infrastructure follow-up view and impact the how through?

Joe Boyer

Sure.

guess, in of believe housing, -- I'm focused federal administration to in bill. say, close transaction a markets program what firm testing end that first those ending glad inspection, is education, with all we've end us closing design, for and solutions directly let are of aligned this think me I read, core where markets. I end and We quality what proposed water engineering of having a be long transportation, and according utilities, our markets for really and business I be and Bill all well-positioned that services that those to are the currently the and management to is through So, conversation overdue. is core and be to our Infrastructure the construction, lastly Rob, believe of services, all our which the to environmental

It if coming is you're most be on going say, lettings was is tremendously services. that it's states how speculative, the Rob, I'd looking although, So probably really timing municipalities through relatively to my we in this XXXX. is at come we'd and to I revenue would something soon late-XXXX, feel certainly, ending before see just experience, those And well Obviously, to around be passed. here, to and really transactions very benefit if likely really great, out you'd passed there tough positioned. of any through, as flow say, kind and bill may from that of, that. say, we're was really

Rob Brown

terms number level, spending mentioned I state And seeing in that cited thank just really it strength. think a a through? But other this assume it there kind at the things level is Great, of it of But is coming that's environment areas then, And particular number spending new But rates. a you business of you're of state higher you. of state in growth is, projects. seeing point. that level a driving are organic what I really increase your what's you

Joe Boyer

Well.

had to continued mentioned, sector. this And private levels, I are you that, and market to the in, continuing as that as know, driving municipalities from really services a that's I outsourcing We're the of even say, our due of markets, to business that side. distribution think number the tailwinds but believe also me far I Let key there's that's seeing a infrastructure as say level in as fairly of staffing so clearly going private growth, we growth Rob. our both, of just I'd investment saw well. public see

are to and we mean, I there. acceptable anticipated. And And slow markets is I little business think, changes a testing really, than -- the course, see our get our area, But which attributed certification that's the commercial to expected the started. inspection mix. amrekts in-bound and we federal in some in slower really did think transportation service of and bit I

solutions think in grew. Sciences environmental had Hygiene past. really by Industrial that's And Our been that that's and down that. where then, buildings quarter. our interested our Group driven and healthy property is in Group, our And our pickup from our the Building focus really clients were on Services transactions I Environmental But really the

overall, We they're quality quality focus renewed quality review. and construction sector. construction growth management. this have quality a really And in it's of mainly and in But coming design the on on program, our seen public

the just steady. So, PCQM. And our seen That you've quarter relatively the substantial in, out? from has obviously, of we the substantial business were you a as help wins engineering design seen that in some then key market area have growth our for -- area lastly, in of been

Rob Brown

does And how the environment. what's on should in of year, very the your cash then, at and thank back rest in helpful, year? the influence for the, M&A the sort half and just sort of good you, this M&A free of that point? the flow of but last activity continue quarter question Yeah. outlook the Very on Again, the

David Quinn

about a so find now, in that had quarter delivered, $XX our on going operating solid active flow good. Rob, At XX%. of million loan have And about couple really investment our opportunities M&A. the same $X we cash place, down you time, this paid just we've looking correct, that's standpoint liquidity increased really are Great several Pipelines that by from we to Yeah. delayed a about term we flow. and million and got to continue right in cash very the revolver with flush

three net business the the get to a a of As confident it's achieve pretty the reduction about in is which end leverage track got times and us full than term a we ‘XX. X.X result, on net driving less to leverage relative time year times to for the

Joe Boyer

Rob while me addition asked that to you just M&A comment -- think, he base just about in on pipeline, comments. the that, I let

So pipeline width pipeline opportunities. our the the great really feel we both about of our and depth

I think mainly our led driven by -- that most our not driven opportunities are not proprietary by so they're deals part broker the deal -- opportunities.

we've continue with that of name smaller bringing choice excited we're those made and platform we've to of a the sort our that. feel acquirer growing be businesses. about onto on So, success an We and and firms had

for continuing and and geographies So, we in the some some talked I about. we're -- opportunities area in where key like our growth, focused service that expansion

continue So M&A our really on focus we forward. going and like we'll to activities

Rob Brown

shove over. quarter. Great. in very helpful. Thank turn I'll you, it Nice the

Joe Boyer

Rob. Thanks

Operator

Dilts Next with of question comes from Noelle a Stifel. line

You may your proceed with question.

Noelle Dilts

the how was backlog acquired, particularly much it. curious the on the was versus next But if Congrats I in quarter of missed that the backlog. organic? On note and quarter guys. sorry I Hi

David Quinn

Yeah, great question.

that $XXX that million we so million organic the saw $XX about our additions of million to $XX about $XX differential backlog, growth. went million a acquired to of from to $XXX related we million, increase was again and So,

Joe Boyer

got have be on to signed, have add, will and we signed that of to there, be dollars have they're they some slide to we $XXX I million yet backlog. been when moved awarded want notes Noel you contracts our

sure addition make that's million to in the just So clear I that. $XXX was on want to

Noelle Dilts

sure, pandemic you're if Okay. I'm the Perfect, worsening And know kind related it's how as the this yeah variant starting that just that of if trends know the you relief you're just Delta coming curious your you this, then and rest kind that the is other sort of then of thinking see seeing, into just missed a sluggishness came some back. across wasn't I were part. the just seeing is and of I'm year? you're about to curious playing I

Joe Boyer

that's -- what well a question. fair No,

had or six prior We are We highest for probably it last COVID just seeing eight the month. ourselves. impact months this

left So and we exposure and impacted own least would. regards seeing It's -- in wave, Still with unoccupied or never we the continued us. variant office monitoring our to and having with helped monitoring those by if at procedures place just our in renewed procedures you obviously are temperature. spaces employees potential to we have

So the in we have seen impacts there marketplace.

we is can later clients reflection those driving and yet and work with get in I out We being They're the at see XXX come believe get lettings I to the direct knowing public not home executions continue currently back that which still, have able have impacts tell to pending you COVID contracts later of markets through from also signed. and and seen that continuing have is full environment. COVID force. procurement our pouty million to is a

So you'd to see add I it that. closely, say else we're know, you I want Watching don’t think. that Dave, that to to anything continuing

David Quinn

pandemic unique work seen. that a what nothing what bidding I of winning sluggishness we're seeing think activity level we've sort is this is and to we're Well, is related of generalized like and talking ever around

the see, to you referenced, work within record we've risk the tolerance of relative look no we're following and As seen. our on. there's the They're if can than that, up after they're to quarter awards you and with Joe size taking opportunities. million backlog bigger bigger quarter just we're And risk XXX profile ever at

throttling up now. not by have the breaking It’s we So, -- It's the and business anticipated is way well. just fine. would operating out it's

to and just not that third quarter get has it's done, based wave driving of on work So, the push and we're resources it's when. bring continuing to in if, the on really volume

Noelle Dilts

all sense. have my that in and that backlog, of question, And resources makes this on recruitment with That thing. pending, and about in sort you last to I that's a try talked then you just that's of investing lot work Right. guess

kind now few quarters you if resultant I you Just how a curious, to there's are a on prepare little drag lot the we thinking I a that, a ramping my you awarded there, surrounds, work months. as bit to meet you've question guess mean, building margin. of you you this that's that of expect resources yourselves do as a do demand. tried that see Should of both just couple about made for and really that out been of and really

Joe Boyer

So, Noelle, tight this that's so exactly that of to ahead there's, -- knew our on added industry and stay on always We've to focus recruiters our staff, and also outside help heavily had markets our that rely that on ahead. to two gone has been recruiter another stay of demand. knew help we this labor, as on us seen internal to said resources. early on our quarters COVID, for We've and out us always adding as the recruiters increase. we been this last has Obviously, coming I've

but us. focus be federal a for not will about, we will of growth demand and be a I've us comes for it because when these further market So also through that talked continual bill all the anticipate infrastructure if that drivers the

weekly our priority we list on that a deal basis. high So on with and

Noelle Dilts

All very Perfect. much. right. you Noelle. Thanks, Thank

Operator

D.A. of Thielmann Davidson. from comes the Brent with question line next Our

You with may your proceed question.

Brent Thielmann

is some a a compares what for just Joe Thanks. number that Can like awards, heard that I you and in of guess perspective to pending too, XXX what quoted it you abnormally give on expect David. million us kind feel get trying Great. quarter, you post that? before. Hey high, of kind The guys I'd

Joe Boyer

think these gear contracts for higher, certainly to $X it new get out looking award. to think out Yeah, that's starting are recall past, can't I tell our million, that signed, it along $XXX wouldn't that's it's clients Rob. an the a good being we taken to just XXX drive Transportation Department longer and compare pending I for question, contract I really and fiscal is that that I I the and to instance year. why week, so there because will you of this million of up signed we're And

high, I know So, it is. mean, to Dave, that you you can't to tell seems do what be I me want it to? I exactly

David Quinn

an that we'd million. into as Yes. would is million. a top so couple $X Brent, relative to look excited we $XX million, million, right. – call contract. seeing size What's larger points contract was XXX we're maybe of this. see average selections somewhere $XX our between and significant certainly million there Typically, if to tens millions. early than that is multiples, Rolling the what about to What contracts increase, of you $XXX next talking maybe I about $XXX million before be here's what pending to quarter. But this are jump magnitude hopefully, four we've multiples, quarter we the of we're the in at the fourth and seen There now

just platform with to relationships programs, XXXX. and fine starting not playing as and the next XXXX we in months, where these going six but securing after we’re look strategy through out improving a in We're see really into it's is this, out. visibility, So our larger with and them. shift together opportunities And bringing improving we're it's projects bigger

Brent Thielmann

in acquisitions I new move either I I'm wondering, And and book of warrants. you guess guess, Okay. visibility then wouldn't at pretty you've the guess with guidance kind better I done sizable on the large end the business, have just year depending [indiscernible]. the, why of could on hence

else caution anything there? Just I'm there level the and at is missing primarily, COVID the some customer ways around

David Quinn

Sure.

million We prior and certainly what by EBITDA remind right up in at course, doing, to recently. of $X.X about would talked so But COVID guidance AEL reporting, I raise closed adjusted revenue helped by moved it we've So, and $XX you is that. monitoring we we're million, well did hasn't QX. that the and midpoint, we

person when really At our firm. break you Now to guidance it to addition down, a it year the this XX had and OSG previously is within fits stage this terrific platform we in the provided. data that

the think though is. Brent more important here I point

the if and we're pro beginning at again, of power look OSG looking you As at assuming year, know had adjusted the EBITDA so on of EBITDA ahead $XX focus a ranges you optimistic we’re in going on million, we business AEL really the next basis, to of and XX started million earnings run adjusted quite done annualized rate year. And we look momentum XXXX. we to as forma the our to at into

Brent Thielmann

Okay.

looks this you'd Just up now operating in the I of back it post-pandemic? sort that that quarter. kind into out, expect expenses jump business the X of the million-ish as come cost one-time there items there's is this last back sort in one you the kind but rate, if run of mean of like

Joe Boyer

on operating out acquisitions, Yeah. QX investment for a for to out those of related was comp. had as back for adjustment equity that $X.X M&A million point and items we're I if would related expenses a couple had a heavy million you million definitely we through, OSG. and AEL related costs them value our We to quarter turn had I We of look percentage down. actually non-cash came transaction that non-cash outs related Brent at us. fair mean, a not revenue, a

ahead. normalized business operating at is you're closer really looking but a efficiently, something for not expense operating items, run rate to for us moving the So these one-time

Brent Thielmann

it. Got

Okay. Thank you. luck. Best of

Joe Boyer

Brent. Thanks,

Operator

question to The comes [Operator Thompson Thompson of Research with line Group. Kathryn next Instructions]

question. with may proceed your You

Brian Biros

This taking building levels. pre-COVID services afternoon. I for Brian now wanted for good I stands Hey, on compared is you to see science guess, where the questions. actually Thank to Kathryn. my

delta pretty was come XX% maybe to where a rebound hit you like during can high all? that that think as people now potential pre-COVID back. at the back I it and for last guess back of variant and quarter I hard COVID the about think started levels, to down rises, of taking education then nice I is came COVID before talk saw

Joe Boyer

Yeah. here, I'd of very to services say speculating close have that back we because tell QX a group added industrial open it, I bit little anticipated will you say I'd those we hygiene level, that active growth expansion pre-COVID currently QX. of in to and now in have into but positions we're that so and

that in help? might that right back and where QX levels. but very close we Does pre-COVID We anticipated to So in be QX. out were, growth

Brian Biros

yeah. variant that level far -- And are then, are of going do as, to decline? potential COVID that things it go or you the does, the the guess I see not at It drop as if downside delta did we backwards, as seeing level initial what's

Joe Boyer

tied want that speculate bit, that. our was have I our we group up in I out because say high and the the to mentioned But I a that's to environmental shutdowns didn't originally. this, Sciences Well, have two the were Building people areas of us financial don't rises as had that tremendously. little you And was and impacted I'd coming we markets would do transaction COVID because business hit think really school

financial So, continuing and are those is markets are now quite on business environmental rolling. transaction the well markets as actually doing our

-- know, with think, master I I to exposures the I with are really to with systems can't But school go. say it. and the more you -- that that where dealing where are going in schools just that's dealing feel used

and that maintenance is of you a really as lot And work can't pass worth continuing so our code continuation sort of of up. they're on

So that we'll in down of, and was see don't be COVID as sort first of experienced year. if I think this, last we turn. don't turned the May I we'd experience April in it sit March, believe the

Unidentified Analyst

follow-up, And of you. because any work? impact second now I work factoring more Thank world to decisions? guess, that are really seeing DoT helpful. of you has Very of is had increasing Is DoT's COVID? outsourcing amount that meaningful not into outsourcing post-COVID pace Okay. Because

Joe Boyer

order speak the in and of think, quarters I busy, year anticipated. outsourcing a all resources, for this COVID, first we is see that can't that couple the as much didn't rely of DoT’s, generalization say I but that they would -- did state during in to the sort on this I keep obviously because we

funding I now as is picking think anticipated. that's up

got rolling. You your new fiscal years

So, and don't to I increase be our have don't as they now up the I much projects current anticipate the into going an QX there'll outsourcing levels we're going staffing QX and to should this from that transportation say the are way business levels will as support. pick-up picking see change.

is more our way. I So is outsourcing what suspect headed

Unidentified Analyst

it. Got you. Thank

Joe Boyer

Sure.

Operator

the reached -- have we for closing question-and-answer I remarks. like turn Mr. back gentlemen, this session. Joe and would to over Ladies Boyer today's call to

Joe Boyer

of on forward to and Appreciate our today. much. support Atlas We quarter. updating very everyone you appreciate look next Thank your us you progress joining

great So have afternoon. very much a thank and you

Operator

conference. today's concludes This

day. the disconnect you may time. lines rest Thank your your You participation and of at this for your enjoy

Atlas Technical Consultants (ATCX) 17 Aug 212021 Q2 Earnings call transcript