MEEC - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to ME2C Environmental First Quarter 2024 Earnings Conference Call.

[Operator Instructions]

This conference is being recorded today, May 16, 2024. A press release was issued prior to today's call on May 14, 2024, which provided the conference call and webcast information for today, and earnings press release was also issued earlier today.

On the call is ME2C Environmental's Chief Executive Officer, Richard MacPherson; with [ Mike Mayasa ] with De Novo Group.

want in that release the today. we the should issued begin, statements forward-looking company's we to you note read earlier Before earnings press

today's expectations results. The statements bases these certain views During cause certain future company's events company will assumptions that and its and about some are subject financial reflect factors actual future current predictive and performance Commission the statements management call, list on that of Securities its most with to predictions. that to risks results could periodic and from differ and filings uncertainties. risk make the The important Exchange

and also EBITDA, such, that believes GAAP conference a Please views or the call financial adjusted measure. the directly comparable measure financial income references measure, The net company to an this to as that non-GAAP loss. as its adjusted company may note EBITDA most make performance operating

the further please filings refer to the periodical company's SEC. with For information,

over like sir. At MacPherson, would ahead, this Officer time, go Chief I the to to MEXC Please Executive Richard of Environmental. call turn

Richard MacPherson

operator, financially and efforts, out thank well XXXX the us Environmental's XX-Q in very MEXC on as Call. as May you, this Quarter we've yesterday, financials strong. short, for as new XX, XXXX, management In starting all filed the our which strategic Earnings updates recent growth include our for call First additions. today of Today's Form joining reported progress announcement will you cover achieved year, great Thank

our to the [ quarter. Group, the company's assist I'll the all in who Mike Mike? ] Novo financial review call De financial turn Mayasa statements the for over of of financials to consultants the preparing

Unknown Attendee

million liability agreement of and our direct were by of reduced Many The liability. company unsecured March million to December ratio also first strategic X the improvements current from at debt this nearly ended decrease included decreased in March at to of March Alterna expense for XXXX. to months liabilities. X Capital. agreement our XX, XX, months primary repayment after the XX, XXXX, share $XX.X further ended a in related cash to ended $X.X with compared decreased million as $XX.X a Thank XXXX, owing negotiated current restructure liabilities with million repayment of share debt XXXX. the repayment. company also XX, quarter profit at The Within March $X.X of restructure $XX,XXX interest from $X total million hand $XX.X debt profit million corresponded debt a to $XX company's debt dramatically X The repayment you, the totaling with at the This X secured XXXX, had debt result working decrease this This remaining a amounts December of of million assets lender, Rick. the XX, renegotiation on measuring months, debt the $X.X capital XX, X.X XXXX. This million. of to

maintain facilitation of of pay remaining by to third Rather shareholders further from our part sale debt stock the the the $X lender primary the while credit this outstanding lender million the balance balance remaining lender. with reducing strong allowed of as nearly the This quarter, also MEXC primary of stock than our a restructure. long-term our due negotiated The debt sale $XXX,XXX received party a to cash to lenders due our balance. by a to company $XXX,XXX was of held dollar dollar was reduced our from principal

margins the revenues, quarter, and which million, yielded debt, and profits core XX% to months company this X profit million our to to compared from profit addition by In sales from increased million. improved XX%. $X margin also increased to achieved business $X.X during ended higher XX% our gross the product Gross $X by in to increased higher March XX, $X.X XXXX. Revenues million first

$X,XXX,XXX, XX, million. X $X.X XXXX, ended noncash months expenses for $XXX,XXX, noncash the on was months loss X and in profit $XX,XXX, amortization interest the March March Included the XXXX, of values $XXX,XXX. share unsecured totaling loss in loss of Net depreciation following ended expense XX, stock-based compensation $XXX,XXX was and for this the of and note of fair change of net the

call. the turn continue now to today's will I over Rick? to back Rick call

Richard MacPherson

with you, Mike, Thank for thorough our quarterly a assistance and all financials. for review your

away I'll progress growth review financials, and areas from of updates our in our new Now moving in other technologies.

actively water the treatment focused activated technologies continues. As into utilize new technologies We market this new announced with foray WEXC carbons. a less that year, announced new division, Environmental earlier our potable on coal-based

and Our novel more utilities products will these friendly for and and alternatives. address PFOS current environmentally PFAS be than solutions will technical Sorbent affordable

Lentz new to stringent water limits innovative team Pavlish our year Mazyck technologies. David Dr. our on Coupled next unique expertise in market appointed utilities Announced VP, contaminants. to John preparing the PFOS Jim support Environmental, of XX, and Technologies technologies which activated new May that require PFAS that and reach as with water Operations Division implement recently members other an We're WEXC well in with regulations, U.S. highly ensure with this yesterday, and has we're the and market Director Dr. own closely Nicholas in announced the will Trettel. Sorbent new as approach to carbons, EPA's potable water success of been adding working introduce a

do for for developing disruptive and adhering the other new regulations with the and and introducing technologies. We sector Technologies, led power MATS coal-fired water U.S. to EPA's our same by intend patented these utilities SEA in U.S. toxins mercury treatment emissions the we to

reaching right and the set the industry requirements a Mazyck to support and served and developed has supply the Mazyck as lead currently activated technologies carbon well-known by division. their Dr. activated regulatory Mazyck's little in supported know-how with major other for Department NASA. academia currently of skill is and licensed XX years, impact specific work the for affordably of is Dr. these water treatment operations. U.S. helm have the Dr. person utilities the to corporations. at EPA, And put by We technological commercialized soon-to-be-competitor plant to in Working over this the by Energy carbon

to Dr. players Water as Works Mazyck's committees Southeast and for XX will of Research that for AWWA, WEXC further industry industry establishes growth as key and become various over the American of and background owner the provide trustee company that in or policymakers operations. in division successful Mazyck's activated Association, further division opportunities leadership the and Dr. carbon from position heading the top years, ensure Chairman pedigree entrepreneurial real a will operator this

also treatment support of promoted working that near through other in will term. the be to water Our expansion into areas we're through finalize WEXC

In R&D to be bringing joined addition and Dennis on team support carbon our to the our new Dr. as MEXC activated additions national has to in director, market. Beranek efforts. management supporting sales development Mazyck, we'll business our

next the for his information and in development release. of work. early new currently many complete of feature our press will bio We're water lab outsourcing of treatment We after technologies laboratories process months week in a research for establishing our

R&D development labs timely technologies. our lab Our carbon own new staff be in of in working collaboratively will with activated success to ensure additional experts, along

market. produce our Our to production facilities water carbon activated the is potable longer-term plan new to for technologies construct

XXXX milestone development, we'll year. move stages and in the we the as new developmental be rest early into through making While of of announcements the

company. committed done market water doing what water, effective, air, the is main for We're future affordable, into of environmentally move growth the to Our providing friendly, for smart business potable an solution. our highly we've

technologies. plan element the Now water our emerging rare beyond consider earth business our to for treatment, we continue

some testing continued experts the we've made from Through the academic lab of University North at positive very Dakota, progress. rare earths, in

consider technology We to forward to continue this move partnerships important commercially.

into market, rare and appropriate by opportunities and effort as we'll longer-term water consider focus treatment this movement to earth a the area. provide is updates Our near-term the we our extraction technologies in provided secondary when

expect Now into confident next as litigation. our news to bench into midyear remain very in late present patent we're for our our we May, with position defendants the this and The quarter, in trial outcome. related positive we move scheduled XXXX,

our received coal-fired our willful $XX unanimous the power patents, our Following continues. to awarding outreach plants verdict jury million from infringement March, company of in

Now backing our company we'll our for strong legal the and value with for shareholders. protect precedent efforts, our continue a patents to our

than reshape on new We're as business opportunities well ever exciting well working growth profitable and significant as extremely we're better a our growth. company execute environmental we firm. to traded technologies a leader into summary, In have actively to realize in publicly positioned key

we exchange, As Canada, a we NYSE. increase U.S. the our enterprise value plan in the to to on or NASDAQ such as and move larger

and and Jim team, including needs commitment continued chemicals Lentz management all to our Vice as President and and President their contributions of success. Technical Pavlish, Operations, acknowledge Senior Dr. of Nicholas to well Officer, like technical Vice support our as Trettel effort in John Chief the to our I'd our especially closing, In

Caldwell help to we bring of water enhance and recognized addition us success, also & going thus North move into partners as The in move partners be management as forward is technology our new business to to at ability our Curry their and tremendously Cassady the new should continues our America. far, market to us core our

applaud the we interest in year. significant long-term your our through and all as commitment and to Thank shareholders continued listening and further for the this your our you provide today moving value We of share are grow. support continue to excited company

question-and-answer I'll session. begin call turn the the back over the with that, to And operator to

Operator

[Operator Instructions]

private Our first question is Quinlisk, from Tim investor.

Timothy Quinlisk

improved -- question them Gallagher in question as part of you. on consideration would the and that A.J. cash to in as revenue growth. result element in the the And when in of for underlying see a of Rick, of group the expect of if terms DTE, QX a contracts. the business I of we I the follow-up materialize have that a those kind that balance other of the that you Obviously, 'XX of opportunities settlement there terms and terms utilities signing go existing terms that's with and ultimately in quarterly ongoing with balance consideration, can QX well. as speak to you through of forward long-term settlement had of

Richard MacPherson

question. Sure. Thank you, Tim. Good

are the in and technology to keep plants and it. before that, have been with we need active using last our So trial dealing using power the actually, since that still

this through actual quarter in that of So expect to I into rest completion to this actual in the middle QX build terms will be I through growing through to we'll to XXXX of see at would in of of time. negotiations I will start QX and starting continue results we'll third but XXXX. show that contracts, it revenues that expect may that in situation And of do move power year. year. we're and this tangible the number build the in a which think up quarter, plants a expect increases see new revenue this show do of I with

Timothy Quinlisk

against litigating of still the question of And fair then it follow-up is underlying say are technology, to hold that these of in negotiation pending your that's to your of contracts? that the this is utilities defendants you're resolution bench utilities ability well using the as that -- to terms utilities long-term as sort Okay. of here the sort trial of that process is sort infringing into on enter foresee -- non-lawsuit

Richard MacPherson

to No. There's Nothing hold. on on needs be nothing hold.

We and to license, under business to the are our based aren't that. outstanding to solutions use trying do find we'll of continue technologies that

are so And we continued parameters at up litigation in nor of future. time just negotiations. litigation none this there tied And do business considerations at in that this the see no any is time,

Timothy Quinlisk

size us the just like the how us the me. briefly, go suggesting of WEXC right. it's All to about portable market to and about queue. get you're back give plans of to put kind then capital, attacking page, materials. because could, the of something produce you've in the your some Can out under and there of: is going a, context that understand here; the it I'll you sense advance what construct and well bit the opportunity you're give as required a little a to On magnitude magnitude you facilities manufacture Okay. And to as, talking unclear looks website it the you just if

Richard MacPherson

sure. Yes,

to established have growth So in talking EPA and into It amount be will of doing and to comes with and but which of ahead will we the as try lot MATS we the go the and regulations business. high multibillion-dollar get a running people up in actually program, saw are terrific effect, will now. annual curve, producing selling a industry, of generate that XXXX, aim material it a into market, to level, the once fruition they

time will from onward, in to any start 'XX and grow significantly So its that XXXX. hit market peak

XXXX strategic enter may to able so decisions to business I market in the in XXXX, some contemplating think from think much revenue expect game this likely and will without be We is a And producing material we'll sooner with plan operating very and see in that talking most too other our but the be it, such now business. in that also be strong industry. participant we I about long-term detail we we're

We with itself for that then have markets that. side the continued development move research into and Once plant actual and forward start through our start we will we our and disruptive completing on directly will in selling technologies. place,

Operator

Instructions] [Operator

I like And conference back closing MacPherson would the now hand remarks. Mr. over to to for

Richard MacPherson

significant Folks, milestone. over give growth to I difficult thanks pass much the for much the the year. that for bench the see trial, it's we point this year this we at end expect that do until But very happening will With for very particular, me of last financial today. the projections year month listening time, what's in in XXst at and in with

quarter that year. we I quarter-over-quarter we growth think the the the of as curve representative through first is expect go very

I expectation and or once another get to more that And $XX to one the million bench will we certified the give the a win, by able review of much with trial be court. next definite way quarter's number the

leave that And for I'll now. at so it

news I our look to in development. bringing forward

got resources forward very moving and forward improved business at joining great been. on you much build next company, well our the numbers and the are core I into to this as you us look quarter expect an additions after to I water for our the We've to as those cash Our are high. business. today. bringing all-time has will continuing to as be Thank first they we significantly much new quarter.

Operator

Thank you. This will conclude today's conference.

disconnect may and at lines thank your your You time, this you for participation.

Birchtech (BCHT) 16 May 242024 Q1 Earnings call transcript