CVA - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning everyone, and welcome to Covanta Holding Corporation's First Quarter 2019 Financial Results Conference Call and Webcast. An archived webcast will be available two hours after the end of the conference call, and can be accessed through the Investor Relations section of the Covanta website at www.covanta.com. The transcript will also be archived on the company's website. At this time, for opening remarks and introductions, I'd like to turn the call over to Dan Mannes, Covanta's Vice President of Investor Relations. Please go ahead.

Dan Mannes

good and Melisa, you, morning, everyone. Thank Covanta's to first quarter call. conference XXXX Welcome

me will and and CFO. today the Brad Steve our Joining call President be on Jones, our Helgeson, CEO;

financial and update, operational your an provide then take will review We our results, and questions. business

Steve slides comments, will Brad website, now call listened after can we be prepared slides portion of on be the the Relations our to accessed with www.covanta.com. supplement with their remarks audio certain section the the this that should and in During to referencing prepared the prepared call. of Investor -- Those call These slides. or be conjunction

call financial U.S. includes GAAP. non-GAAP our financial have redistribution, update in or they which should GAAP, the not from law. Now, information calculated The in cause with filed other with any be be by accurate call time-sensitive forward-looking registration information rebroadcast the Any those information measures. preliminary regarding the that written this broadcast, form on We the are not in factors accordance SEC. of of may any such do and actual and contain unless Harbor measures Covanta statements Company's discussion only the to accordance assume of conference required Because found forward-looking our notes; and content differences of the from April is prohibited. without materially to obligation statements, XX, this these results express can contains expectations. that date statements Safe been in is XXXX. Information this in could considered isolation of not with retransmission prepared live following our reports differ may The as consent presented

press well Form our SEC regarding definitions the our that, to limitations President and X-K. Jones. as purposes, which I'd as like night and to usefulness as over of and turn the was on now For furnished CEO, them, was to Steve please last more for our see Steve? comparative release to issued we their measures use how non-GAAP information With call

Steve Jones

good and morning, Dan, Thanks, everyone.

web For X. those are I X. using Slide quarterly of discussion results you summarized deck, my on our will the on begin Slide

XXXX $XX adjusted are $X flow we during executing year plan remains of million first as for our of our free EBITDA million financial generated the on well the and quarter. And unchanged. We outlook cash

X.X the We $XXX flow $XXX expectations are to cash over of in first EBITDA range strong free $XXX million, and the previous as our adjusted million a range of our the of X% expansion year operations quarter, in plant $XXX portfolio. million and tons result We processed increase to of affirming million. of million a last

production in expect XXXX. record set We to another full-year

and was CapEx to quarter As and plant year the quarter almost the spend maintenance in first for normally than our maintenance plan year. for heavy quarter Overall, are last more lower consistent you unchanged. completed first period of this represents was and different. full-year the all the of expense maintenance XX% our we In know, with a with mix the quarter no and expense expected maintenance slightly CapEx. a for year This expectations was our

is of the to located the our we’ve Waste broad-based flows stretched increases. strength. price focus aggregate market benefit perspective, are pricing today, fairly discussed markets. from strong capture merchant of have we particular source throughout England our past, In disposal and end metals number And an is remains for price continue comments and flexibility sit infrastructure footprint and From New waste prices assets the with Transportation track. our we environment. in as robust. line to But the on previous remain market As improvement energy right in attractively our here one plants. a business a

X%, were under fees as overall With tip that nearly tip waste on a of XX% contractual this is occurring is quarter, our up even fee basis. contract. the to same-store growth increases the function a our improved stronger over we X% continued escalators these markets, rate as mix a Recall re-contract spot For closer price growing and of running of ability perspective. is waste pricing types of increase benefits to volumes -- see of from profile

the structure. roughly to contract. XXst Valley clients MTS, residential quarter, agreement New milestone non-landfill the product with is rate tons material all waste that to of operations growing to under Covanta a waste as ramping Babylon facility sustainable not XX-year same-store waste for contract fee full-year solutions our at deliver grow Street anticipate of extended This and of profile a arrangement historical network On with another currently volumes York closely and partnership of new this X% remains Niagara one-third waste, of waste Babylon Manhattan. the our Marine execution, over town at in we processing XX-year be at strength sales X%. process expanding municipal improvement for the from increase do signing we of in the provide processing Including our our at plants our up this a under volume client for market to X% waste a work we quarter, MTS sustainably continue it's and collected While continue I with to annually by effective revenue City. of we ultimately the profile quarter. began service The in to short fee an from of the issue. continue through waste the see around hit will important price of plants expect every internalization facilities. to March, full-year. we growth revenue Delaware XXX,XXX East with Transfer is options tip still new solutions, New we disposal to in Station waste was Long the energy top In or at Island demand integration increased we will disposal York. We into long-term the expected The sites energy solid and expect

where transitions revenue tip a as management capacity. we benefit our agreement share structure, disposal action a fee greater to the new and opportunities from well merchant as under with the While contract long-term metals energy power of will

in As are quarters, these profitability announced unlock recent by situations opportunities. to -- optimizing some desired our I’ve focused to meaningfully less The upside changes outcome plants. make on for discussed improve of or meaningful We’ve quarters. in we options is some our alternative recent in of these fleet profitable exploring

right our However, redeploy is in answer capital and to resources cases elsewhere. the some

previously agreement to and divest reached Jersey an quarter the This Pittsfield announced and assets. Warren we Springfield New closed as the County, facility

our While relatively well-run, for and we small three saw they were all plants opportunities economics suffer under limited improved from ownership. sizes

to communities. support have continue new pleased are will the owner found Springfield their Pittsfield for who to and focus solely local We a and will operations on

second this in the expect close transaction to We quarter.

the the either these milestone. expectations the Group financial Veolia, process project management we contribution the Rookery four projects But of is the so small will Investment going to Given forward, material announced we as Green development size risk year. this allow we far three well and and it on partners on that and will the support our our believe this facilities, portfolio overall our of financial month. close on construction. a not and waste of for alongside impact expect XXX,XXX will have in Last, and metric not project work in our reached reduce It few more financial least, partners With late profitable look focus the us, annually. I all last the operations. our full-scale exit biggest we’ve as I’m that around to note certainly very this help behind its options our improve to and of plants remained critical tons we team appreciate to lenders underperforming close continue performance to A the reach their on hard but sharpen pleased of fleet we are at or opportunities. to us

Our Hitachi built successfully Inova EPC very contractor Dublin primary is Zosen project. our who

while for the operational, XX%. and a Veolia each of puts remaining operations three these of of under the with the XX% the and In is Veolia as anticipated owning previously years, the split will XXXX. discussed, projects, majority be arrangement, operator about owning As the take waste. project is will construction long-term supply Covanta is ownership Once GIG plant Covanta to which commercial in typical

the One many the of developer to financial GIG for monetize is original of partially close. their benefits investment of ability the our partnership with

the For highlighting Rookery, Covanta financial received project. $XX million of value of consideration at close, the

that In funding more these Brad will part an this stakes highly our addition, strategy is in efficient for overall in is projects. as of detail, equity discuss

will count of now in targeted projects on at and to well. pipeline. more roughly As look annual of that and half U.K this two very moving million cash from our I $XX announced are flow basis, have holistically, along a $XX combined it things step free construction We the four of development we've the for back million

focused two in now discuss close bringing greater on are Brad next financial financial hand and Newhurst over to and results construction. detail. our the will that, With We call I into to projects, in to Protos

Brad Helgeson

of to first review prices impact saw was a our the year-over-year. effectively of $X the service prices market lower during the facility transitions from revenue the the as financial received the $X positive a metals. million specifically million first million the a operator added Good and Steve. waste million, year construction of excluding service will revenue for we and reduced revenue had Long-term performance by net offset for contract for revenue facility. Babylon our impact XXXX. XXXX Beach Dublin begin the revenue of client Total decline debt operations in prices of lower Slide of the fee under down to the $X of discussed $XXX of growth the XXXX from quarter the owned client was by on Transactions quarter, related as contract was quarter transition price commodity I Thanks, September $XX million early the quarter Commodity morning, flat year-over-year middle another to project negative previously million everyone. quarter. energy reduced end that my acquisition quarter, in last Palm with modestly as while the payments were growth Organic $XX of during by X. revenue deconsolidation

given first Slide first million XXXX, known the earnings which for was to a $XX decline call the was Adjusted last expected million EBITDA in on discussed X. our on the quarter headwinds the in of quarter, Moving compared I that year-over-year to quarter February. $XX

waste declined interruption adjusted maintenance higher prices, spend EBITDA as the by comparison against this $X $X business as our a by as a benefit higher of proceeds expense of year, organically versus insurance quarter. commodity million received last of prices slightly was well mix million offset within Excluding year-over-year CapEx unfavorable

growth the and in the the the midpoint in will Looking EBITDA flat deconsolidation of abate just acquisition from million full-year. immaterial of the our of balance transactions the translated full-year ahead to we to the adjusted for come X% Palm to of the commodity in a we to EBITDA prices, transitions Dublin. as was by the organic be adjusted line of year, was from range, guidance impact comps adjusted headwind range roughly represented as in X% on the revenue $X Beach net unfavorable offset headwind of to with quarter contract impact quarter year-over-year. The At largely in expect would benefit target Long-term directly I revenue. line. and modest EBITDA continue our the discussed, The the

more will EBITDA, and I that not moment like take in to year, fair explain half items our that but improvement. a to noise income the second some in statement. year-over-year here the adjusted it's balance did impact assume So few a would specifically the begin to created quarter to for see the of

plant the a booked by the million related sales with the we Springfield Pittsfield the $XX million associated quarter. reflect This project, of gain $XX write-downs partially facilities. and First, net gain in Rookery a on to offset divestiture

we million Again, other operating Warren accrued to the adjusted addition, closure In expenses these from the $X facility. EBITDA. in items of related excluded are

primary million of we’re benefit on was drivers, flow that comparable over basis. quarter, flow consistent driver a quarter the outflow improved DSO which the payables level. to the $XX and standpoint as million this free a the the drive significant last was compared we now million $XX X-day cash was course compared compared from to for from last $XX continue first same X, a last year-over-year reduction million we of to managing XXXX. accounts follow XXXX. of to quarter more of Recall time, to year. million was a the saw AR the That Among a as better over a adjustment not The by capital. performance, year $XX payable did At reoccur at year quarter maintenance lower in CapEx other working of to improvement normalization Turning related cash $X Slide this as

our As Steve CapEx year's in both maintenance of our first overall earlier, this lower were relative quarter. noted spend and mix

full-year, While within call, expect lower free capital projects our we stronger the spend, QX on favorability much years. of timing the as modestly recent the cash much earnings for plan. maintenance to discussed in QX do than capital our spend last XXXX of flow in was maintenance related

I will the not extrapolate for that However, your outlook to full-year.

we’re a million confident Our $XXX and guidance in that $XXX remains range. to million

to Now review will turn Slide X, activity. I our please investment where growth

commencing for Transfer $XX recovery in at projects, and Marine we in $X During organic equipment service solutions increased required and metal million for environmental a invested opportunities Station. quarter, billion Manhattan Covanta the for first our growth transportation the primarily business

growth the terms was our project The financing project financing this structure current £XXX pound-sterling be than our investment growth the to outflow million funding from for rates. net in at The with to flow a $XX whole attractive I anticipated requirement of about Rookery closing credit as news with the flows rate through course, X%. U.S anticipated is nonrecourse free cost a or another million will for of in walk facility a commitment in at $XX partners, approximately £XXX topic by at development a funded with commercial sheet equity again, of looking us Rookery we premium XX% at Of equity US$XX fund funded project this in upfront million very total expect the Rookery. collateralized This with project. letter demonstrates Under efficient at you very received by be project. of quarter operations versus returns. on only expected Covanta’s plus we balance mechanism investment invest cash long-term ratios. exchange that unchanged. for the approximately right we attractive for capital without Overall, funding the approximately million, bridge investment of the in with recovery developer equity balance our be under financing how million. primary project as of the a in anticipated will paid GIG million progress GIG based Xx equity monetized premium will case back, outlook project incurred remainder the of looking project Stepping funding our anticipated big goals. of our be our further sheet million investments put financing defer the the our Rookery the dollar our in that place significantly the $XX or deleveraging level partnership and which for costs on years. requirement the to capital, subsidiary. is without And approximately no to under The amount credit project funding, cash less XX% This credit impacting a £XX XXXX the until with our as required Veolia is for these In we’re represents the XXXX. we for investments or three bridge partners corporate Covanta’s -- and share consideration GIG, of stake will the funding project of the ourselves, in terms impacting

construction the outlook shown timing move million of spend or Newhurst. we level of at those through may projects investment requirements, Earls the Depending commencement does change this reminder, and a on the amount yet U.K funding the as the reflect Gate of However, and near-term in XXXX of not Protos as only year. here remaining represents $XX for full

to a as GIG the Looking the at in XX% years, a the proceeds next all premiums we’re from by and we announced million projects we facilities whole $XXX remains the total year U.K stake several entirely million, end that will to four sale of over expect the investments across up the that earning which Dublin pipeline our U.K to Slide funded from $X.XX will last ratio from the consolidated up up update planned $XXX end slightly from senior XX, XX, was ratio was the developed I as of on million at At facility the and our reached March net provide billion, turn where XX, balance December our debt sheet. XXXX. At quarter leverage Please close. financial X.Xx they end, brief X.Xx, X.Xx. $XX XXXX was credit

was revolver liquidity available $XXX about under Our our million.

current likely last adjusted year cash to end exit given not we be similar XXXX, in call, EBITDA, in credit free outlook earnings our flow for our where it's XXXX, capital ratios our and higher. if that discussed spend will touch As

term intact. deleveraging in XXXX continued our firmly for However, remains path and longer beyond

I we hand it turn Before would for comments. it like over concluding back to to to some Q&A, Steve,

Steve Jones

a Thanks, take moment to things. and few Brad. want reiterate I a

housing see our opportunities, development. are long, we new see encouraging these a initiatives opportunities. continue by early of domestic discussions uniquely the We business trend interest Our signs many U.K to capacity not positive soon markets market of positioned are of pricing centered sustainable execute improvement and are future. adding we And starts population coupled stable strong to of with in contracts providing growth early in likely and renewal, anytime This development favor. the light GDP, positive our well time, few momentum but participate beginning and solutions. domestic around In and moved noted has growth to disposal this EfW on our up is upward we continuous our these clients with the disposal for factors trending as combined At macroeconomic coming waste capacity. we we in cycles is same such key to the organic abate and see into continuing as tightening

operational accomplishments business the respect our is an forward With front This on and to with in let’s time Q&A. of look focused proud on exciting overall that, opportunities plant. to fleet and excellence Covanta are team's move to I’m growing We of Operator? and the the us. of for

Operator

Brown Raymond first Instructions] comes you. James. Thank the Tyler from from Great. question [Operator line of Your

Your line is open.

Tyler Brown

Hey, good guys. morning

Steve Jones

Good morning.

Brad Helgeson

Good morning.

Tyler Brown

Hey, nice the Pittsfield to Springfield. start on quick year. and Real

plants, that didn't for won't sold get run for sense to presumably much seems will it continue a buyer also through get much those you them them. or the strategic get So you who but

would other facility the not big shuttering geography lasting size how to shutter tightened to it's my you of is or a plants versus waste your as completely do So off, a perspective? value sell market, weigh permanently the presumably driving kind be going entire deal just from

Steve Jones

It is plants. from not perspective. big relatively deal a a These size are small

year, you a tons at look Pittsfield, it XX,XXX so. or tons Springfield If processes XXX,XXX

did are these look so central -- at So I And in on getting We shutdown a to Eastern They��re looked or way versus not are we it's similar impact and this sell case small of Warren, of the not this material analysis. -- we overall, getting big the to divestment if kind plants. then market Massachusetts, particular actually Massachusetts. tighter amount case, proceeds. a we’re you case we a mean, in Western at looked the similar key this, the --

the So us to costs it at plants we or exiting divesting continue these and to looked plant. run versus what really keep

you flow on these plants because free on one our an at from the have plants, of the us you’re standpoint. standpoint we and And X%, one cash flow free Now from positive adjusted not to is to at go it’s interesting from less go plants. to issue these bigger, day, the an to EBITDA more than of end plants a big it allows of for so adjusted at impact if cash see these quickly EBITDA an a from respond focus depending issue going these negative the have facilities profitable smaller management smaller

plants So this is one focus profitable been is focusing really our with to I've talent. things management and opportunity an of on pushing bigger our the more

Tyler Brown

Okay.

But to do to the of mechanics Now Rookery. that’s I back helpful. want come Brad,

make just to I want sure got I So this.

up – your cost premium equity $XX project some recovery investment front. considerations getting US$XX but So maybe million is million, the total and you're in of

a all is your equity a net for XX% So right? stake. investment that US$XX Is set million

Brad Helgeson

yes. correct, That’s

Tyler Brown

international then free And cash. $XX Okay. million $XX expected the pipeline to or yield from million is

You Rookery are that, of mentioned that largest I thought four. the the the is first but of half two facilities

contribution $XX So expected cash it Rookery, call that million, million from high? is the or too free $XX flow is

Brad Helgeson

number, the million for Well, based $XX the on way but I the a thinking contributor the $XX and is right put largest that I it mean, million. to won't about out comment numbers you’re right you’re specific we’ve on to whole pipeline a as Rookery

Tyler Brown

Okay.

on X but years, So be maybe like is payback Rookery cash – is on to your cash clear, that something right?

Brad Helgeson

alluded I mean, where in prepared Xx that I than less Yes, to cash. free remarks the its effectively

Tyler Brown

is how the mix? spot shot uncontracted And But fantastic. benefit then one was pricing was That's at on up team, quick the contract any book, right? okay. just last The piece here, much or X% largely obviously waste color my So Wow, tons maybe or of whole great your X%. on up, all the there. X% were

Steve Jones

a Yes, running to X% the broad It point. this -- does it right. the apply as to X%. I of at contracted your does part around first of Contracted contracted answer piece, piece question, you’re everything. average mean, piece, The we’re

that’s not double tied this So at point. anything is growing digits down by really

Tyler Brown

great. Thank Okay. you much. right, All very

Operator

from comes Oppenheimer. line Noah Kaye the question next of from Your

open. is line Your

Noah Kaye

add Thanks for is cash really to compelling. return questions. that Tyler, to return taking And the on Rookery

similar have would two You projects. that the place mentioned you in kind of would for mechanics -- you other expect

as return do that? will a be comparable? it projects, developer see, to lower would How expecting we We about in a role of cash or because I your those presume, be think

Brad Helgeson

and projects agreement Hey, we Though under GIG. into the largest on calculated that be of Noah, is premium very returns which with have has the will It comparable in four I that, attractive translates Brad. structurally then of GIG. you with the is given equity, size arrangement our it's the will Rookery tell how terms

are we the similar, dollars the not something So same will but going to expect level. be at

Noah Kaye

to Protos review permit to should there that lead at anything we pretty of of you anticipate close would get believe the end the the be wouldn't be financial I then, you fairly that kind of get And fair. able the that’s reaching kind [indiscernible] Yes, that of past and operating soon soon?

Steve Jones

it optimistic and doesn’t or week then It didn’t of XX-day we the -- move fairly to close. so judicial we We -- on are are doesn't have a Rookery quickly yes, had. that that getting noise will Protos. period it to around within have review And,

We are in are with the provider, discussions the EPC with we banks. in discussions

get So we we expect, the as few quarter we get closing. timeframe second June, here, is guess. a through my July will

Noah Kaye

then, just subject, turn Excellent. you are give facility? where I to TAPS. a can with different of And update see kind you on at the an standing investment there, of in that us

Steve Jones

facilities is installed midyear. Sure. construction site we be it it at expect and The and under Hills testing delivered equipment are the Fairless off to and around

So And basically, it some technology then to on decided basis after move will at move modular and do that, the we provider's a testing to we commissioning. will then Hills. Fairless site we into

of and that year So commissioning that are getting facility are and part we ensure pretty half I we the the throughput we the mean out consistent will are excited use this. about operations second of of a for the we the good expected.

industry about talk This something been of while. years. heard many about has kind a You’ve for talked been over us in it that’s the

for at some in other developments of also are early our We sites. stage discussions

talked well some And some be. to at clients Hills our I the talked on about get sights looked next set this think And deploying this we’ve then to the want fairly look so of we facility of will -- I’ve technology and what and at other our and Fairless I will investments of to sites. along before.

Noah Kaye

Great. very Thank much. you

Operator

line Your from question Michael of next Hoffman comes from Stifel. the

Your line is open.

Michael Hoffman

ops the asset all missed being the treated the taking I’m Are for disappears? already done is if I Housekeeping, and questions. just it Thanks you gang. it Hey, sales call sorry, disc it. as it on said and or

Brad Helgeson

disc at It's technically. end Not Michael. to quarter assets them Hey, Brad. ops, moved we held-for-sale

Michael Hoffman

Okay.

So we -- at sheet? balance in that's timeframe will we see closing see the will what in the in that XQ that

Brad Helgeson

exactly. Yes,

Michael Hoffman

went can this and volume, the advantage looks bell cool. taking help was cadence then if you so us the years, your you what’s renewals some tip curve today Okay, from like of the And improving zero marketplace? bell out of of with in five curve the we contracted could of understand what fee

Steve Jones

our over about that kind In have of [indiscernible]. XX% that we portfolio turns of year, So -- every right?

Michael Hoffman

tight it's bell curve So, there? pretty

Steve Jones

Yes.

is, at as average So, at then at that the getting continue pricing it's you you tenure opportunity we to reprice -- yes, tenor are our that the to to in future. -- gives yes, and in we year. But because base we the and what about of -- XX% us look continue are if you every contracts, see and average and kind the higher the seeing the will -- are turnover of believe,

Brad Helgeson

XX% is that there just And of over an some lumpiness look to of probably. period, but a X-year out it's X, average rule thumb, as you a as

Michael Hoffman

and concentrated -- that’s of some Well so pricing this happening is very geographically.

have going versus enough either? mix weird So not weird is spikes it geographic not are to is dips reasonable the that to we to I’m assume -- in that going the 'XX balanced see

Brad Helgeson

you going or question, waste this think see, to to think with see you isn't don't your not dips dips if regard and will are pricing. I but I don't and correct me spikes certainly

trajectory the think clearly … is I

Michael Hoffman

change? Ready to

Brad Helgeson

see we as of the [ph] it. is going to changes sharp … rate … Yes,

Michael Hoffman

it I what I it's markets. of changing changes, faster versus be mix odd I Yes, is really at. more and might rate what a mean next markets of was there an was That’s trying get X%, slower changing thinking. year is X%, to X-year issue because an

Brad Helgeson

Exactly.

Steve Jones

right about you're that. Yes,

quite but England The which is New been power are market other mentioned, this pricing across thing is fleet as the based. little a Eastern has primarily robust, Seaboard, by and that, is we seeing you were too, surprised our we where

It's pleased broad been more than been by we anticipated. that. based we’ve So originally

Michael Hoffman

talk about realized aspects I think some end, unique wouldn't normally Boston you So But I it. to has that specific any to contract.

So about about X% the came disposal award five $XX approximately out years with at a ago escalator.

of at is down in coming at a I'm single a to at steep years to finished get that's about true roots that's so handle $XX you as it $XX, and what is and it's pricing the opposed to trying the pretty So five getting up that the contract? mostly a step

Steve Jones

Yes, it's comment. to hard

RFP in We are that the right of middle process.

it's to hard comment on that. So

some point additional provide future will potentially. at the color some in We

Michael Hoffman

the that’s But around we of scale hard a that kind -- what are directionally number? like this without is getting of

Steve Jones

Sure.

Michael Hoffman

increase were expecting? bigger than much a It's people

Steve Jones

it's Yes, a will it healthy market, that put I way.

Michael Hoffman

or make. again which on maybe development, there And will I geographic have -- coming U.S going bet hard to the then made likely not, an that’s comment like, part the of you been Mid-Atlantic, that that is would than -- multiple places? Okay. thing Steve, Coast, a country be have -- interest is a kind to of that there once from be more it from interesting it East Is coming

Steve Jones

on We primarily in it Coast. are multiple the East seeing places,

in population the And -- this, people And the particular, municipalities on you starting plan look Northeast area are happening East to is, capacity over solid about at disposal tight pretty to that. waste for some places -- next do centers aware XX what's I it's of and in years. at we think they’re getting think XX-year and are talked you about what So well and looking their the going looking what Coast. are

Michael Hoffman

The mean of always the got oohing a that’s you lot And aahing close, new the lastly, U.K structure, is close. has gotten know of financial return, I financial just only and understand of Yes. I then, about there of rates just structure you’ve opportunity, -- the so that’s but new. right? none I the we been this been thing the has

visibility. we are now more So triggering

Steve Jones

today the that monetize part -- in because is it did. detail of we we premium I'm if work able of to it it hard not we we effectively are is explained of Yes, but a level some the unique. it sure unique that the explained

you with think stage, through arrangement payment we up monetize the at business you you to point, it that monetize into construction If would that this usually stages, we development premium but the with were in able partners. about get set

Brad Helgeson

your Yes, Michael, comment mean, is described. nothing is this I had structure that we correct, the changed.

a example what’s those numbers actually think that up. now we here how I new of is, have add powerful

Steve Jones

Yes, it we put on numbers now.

Michael Hoffman

how so a million, have of I of out for my $XXX I I'm just benefit, thinking between will the what -- premiums then, of just split be versus And it. approximately Got that that? I Dublin, $XXX to million how sense can it

Brad Helgeson

U.S €XXX Yes, little $XX price well, you just took million was if Rookery, it. Dublin, and announced bulk today. the as a that's We so out of million, in of terms over another that recall dollar we that's sales

to two, So up million for the pretty are pipeline. to covering close between those you $XXX

… So

Michael Hoffman

that gets the as -- then and and enough the you two pull line? contribution left credit that’s it would off So next that well over some have and just close you anything

Brad Helgeson

Correct. That's correct.

Michael Hoffman

Got it.

Thank cool. you very Okay, much.

Operator

from next from the Brian comes Goldman line Sachs. Your Lee question of

Your line open. is

Brian Lee

is that or monetization taking facilities here. Rookery, something for original those you see on The questions. or you Thanks just Protos you if a guys. ones well? few could just if as housekeeping gain on upfront elaborate, the Hey the Newhurst, remind developer also will are on can Maybe you us

Brad Helgeson

Yes, it will be similar.

expect, the As be the will our mentioned magnitude smaller with same minutes I a we Rookery but GIG. ago, those few to are respect agreement as with

not Newhurst. with original with both our to as we But the on Of We, same are Biffa are terms combined developer bringing but original way the Newhurst. in in developer magnitude represented. on Covanta, projects of is partnership GIG, that of so on partnering necessarily Protos, partnership, our again, the structurally Protos Rookery, Biffa that the Rookery work are and course, we context we the

Brian Lee

until Okay, is fair investment outlay it's about targeted XXXX. not is roughly timeline, that structurally everything then, the you according XXXX only frame, to de guess, minimis $XX enough. outlays really, million Rookery if in are And in if fairly that talking terms zero on the and through correct? your time net happens I of But

Brad Helgeson

correct. that's Yes,

finance As I funding. my prepared the remarks, at decided in bridge equity the partners project level, to mentioned the

see or rata. what upfront is in equity pro you typically on the this go would would project like a So

But we financed conclusion equity only various the cash Protos, period. that the going we drawn as we for bridge is loan pro repayment the at of So, equity bridge reasons, down. example, in an so I the investing example, the financed debt be pro rata, construction. for really rata construction the mean over to the along When expect being with for say, I of effectively bridge

Brian Lee

the will looking the dollar Okay, the robust perspective, strength is, on, increase tip specifically, great. mid-teens know, pretty I quarter but tends here historically, from uncontracted me, volume of And and from be helpful. I historically, an to on just the last pass weakest then QX That's maybe absolute one pricing year fee it in year-on-year here.

mix-wise about color the from the how thinking then of from wondering trends Thanks, it just last anything Just stream we for mix year? unique comp guys. something QX pricing any or your year? there. the is So be for in And should that rest specific for

Brad Helgeson

a a few few there Yes, there. drivers

not benefiting is rates seeing line where we under waste across healthy That's an strong. And overall portfolio. the mentioned, the very anything that’s So of shift to also is double-digit as average as market are contract, type growth course profile mix I the very us. the

see back that time. a long of You going over period trend

waste by profile year-over-year So quarter. in we grew the X% revenue

just when outages Also, talked where were. of We So margin, the have of did based earnings on look the outages, call impact a mix that's in is had through overall in on where will growing the the this we as we've in we at are working that guidance, quarter, just on on tip be February, some schedule we still our to the some it. contributing minimum. some outage about terms benefits based the the of on we prices X% first at fee expectation set the --

maybe so, way we re-contract, we about existing get this the inflation for those think piece, will to as type levels. but contracts is, at And growing contractual bumps are the

would end be that overall uncontracted to growth growth X% then rate. then an So -- with what the with implies up that

Brian Lee

guys. Thanks, sense. makes Okay,

Brad Helgeson

Sure.

Operator

Jeff from next comes BMO. Your line Silber from the question of

is open. line Your

Henry Chien

good It's Hey, morning, Henry guys. for calling Chien, Jeff.

Steve Jones

morning. Good

Henry Chien

the you’ve guess, funding in on and any future sheet wanted update wanted hey, just equity of or you equity debt ask terms given the expect pay if to to -- Just balance have? needs and the, down to that ask I I

Brad Helgeson

Yes. Hey, it's Brad. Henry,

leverage standpoint, ratio As from a improvement I mentioned, XXXX. in on we plan don't any

up expect be areas. are if just investing may and on that the flat midpoint are And out Notwithstanding standpoint, expect other we fact, of in business. of based -- ratio In range, guidance investing in fact roughly from slightly. that's we to EBITDA the the year-over-year anything, we Rookery our some we the pulled project cash upfront, the it we a tick that

course, equipment continue the buying New of about that for to York and had initiatives in terms City an expect to we $XX the we then of growth that in prepare of we we in, organic total which transportation Of some MTS TAPS, million. course invest additional needed investment startup, to represent

So, for investments would to us a down back in the pivot What we going lot think of this towards of to XXXX. debt is year is going expect pay not for us. are we that fruit forward. bear These a trajectory starting deleveraging, are

Henry Chien

Got it.

Okay, much. great. so Thanks

Operator

over call further are There no this to time. at turn back questions you. I Mr. Jones, the

Steve Jones

positives again forward all your this more We’ve already for a participation. you and of lot look the year months. coming made Thank to progress and interest over

an In calendar this And you seeing May look IR to participating. many June. great thanks on spring. of addition, and a day active we’ve Have and the road for we forward in

Operator

This concludes today’s conference call.

may disconnect. You now

Covanta Holding (CVA) 26 Apr 192019 Q1 Earnings call transcript