PESI - Earnings call transcript Q4 2017 | Perma-Fix Environmental Services, Inc.

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Operator

Greetings, and welcome to the Perma-Fix Environmental Services Fourth Quarter 2017 and Business Update Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, David Waldman, with Crescendo Communications. Thank you.

begin. may You

David Waldman

morning, Fourth Good welcome Perma-Fix to Thank and everyone, year-end Services Quarter XXXX Environmental you. and Conference Call.

with Centofanti, year-end which on of this morning On CEO; financial The company Naccarato, results, call us fourth press are Officer. company's morning the the release a Mark Chief Dr. Financial Lou posted Initiatives; quarter Executive is Strategic President containing also issued Vice website. and Ben this Duff, and XXXX

and from to the U.S. materially cause of differ to unknown which filings like risks in uncertainties the the company's company after XXX-XXX-XXXX. financial may questions other forward-looking contained statements are and forward-looking information of could the with other actual and remind of Reform detailed Private results statements factors, any any are have of statements. Litigation than Securities performance known morning's historical would the These contact such at additional on uncertainties conference be and fact subject the are Securities press the bear or upon Communications commitment forward-looking Exchange everyone as as you forward-looking I'd please meaning the company, hereof call If this conference that The facts, after date All well a and disclose events company measures. within statements. makes any Commission this no statements any or release. this certain statements about statement call to XXXX, within call to statements to non-GAAP deemed that Crescendo certain that Act revisions and include or circumstances like risks,

measures Please ahead, that Mark of references measurement now available an measures in news I'd to A include of its on and over the the comparable today's Mark. believes release today's consistent discussion go In to the provides non-GAAP GAAP call Duff. website. comparison directly will additional most to measures. to our reconciliation like is non-GAAP performance. turn historical information addition, such Perma-Fix

Mark Duff

Thanks, achieved number as transition for and milestones year company, David. a number the implemented very a we significant XXXX changes year. a important of was of this

cash primarily million for First, flow Treatment came to the XXXX. improvement from a from We adjusted achieved just our of $XXX,XXX year This Segment. EBITDA perspective. for compared $X.X

quarter, up. For receipts waste fourth the were

affected Treatment segment waste the timing revenue and our However, recognition we was mix by of particular received.

heading completed still meet to in additional of fixed continue in of That Importantly, savings. a QX, year-end. we and to our backlog Perma-Fix. which increase is At our annually. said, We're are by same $X we at goals save closure believe have backlog final facility our to be an XX% growing of of areas time, work as XXXX, identify at cost to lot stages into the in of a will M&EC managing the carefully $X we evidenced million cost expenses million to the do

of these quarters with major wins awards and which As are stated probabilities maximizing revamp to delays services, two to Services has uncertainties in within process from remediation revenues including anticipated, our taken targets Services changes competencies segment. the our as in lower radiological XXXX, with we've production federal bidding in through increase undertaken capabilities. government coupled Canada. past our good in The resulted the But proposal our has which, due in to making funding in progress initiative resulted Canada, of the growth several the we in continued a impact well advanced win than core number as segment for longer has with

the and our NORM known waste, naturally demand also In number us growing addition, oil material of in as opportunities for management allowed we waste. a apply unique that markets and gas in Pennsylvania occurring have see of Western capabilities radiological to

expand to new several completing the more area the region services clients. our Within we're the to NORM markets, with within partnerships service and in firms

have We quarters. 'XX revenue should next revenue should year. that a XX% to do which awards, in increase contribute and segment, Treatment of but selected, XXXX our in we for In underway, better the saw we - the waiting in expect this contribute few within if we are Core important procurements to Services segment versus

As in our more are revenues, programs our our programs support where tests containing At these DSSI new as treat underway new be We're contribute activities of waste year-end, performance define up is installed aside of construction, also will of treat at anticipate used treated that system, facility attractive We're expansion in The being down touch the activities mentioned particular, anticipate should to expansion is niche recent first to to existing streams partnership market to Vitrification used for and earlier, opportunities I activities state to expansion waste. and year. on purpose provide [indiscernible] our verify We these number and at at the treat very technologies. will historical waste, form This XX% system in year. have as our that Florida. we in about with is help we're the should initial evidenced currently quarter. path which provide facility. the But of those will GeoMelt QX Gainesville Veolia will the an second the our we that mitigate treatment providing - to installation our return sodium for the at the commercial waste waste in initiatives our radioactive we're and nuclear and in its business, Solutions, parameters a that to to in closure markets facilities excited testing the origin the sodium Northwest to quarter particularly, believe represented which a mods In those. to hazardous-waste in waste waste Kingdom, of in base in facility shipping were capabilities Once it's this ongoing a waste a completion XXXX. with completing and stable at but Veolia type of backlog at Upon the quarter. addition we're with permit we bidding the Eastern right activities disposal Perma-Fix, consider we wins currently experienced road, our international waste which Tennessee, market construction be GeoMelt capability should Southeast had government final fourth disposition. This process beginning facilities country 'XX growth, from is well Mexico as - our in accept Northern in for Perma-Fix completing United our and stream receipts and the no relocate first Perma-Fix we're continuing processing in revenue, facility. industry. quarter, be commercial Nuclear difficult diversifying in facility we about each we our with our radioactive in Italy, seeing partnership M&EC I'll improved should with Canada have waste to are To an permitted to increase are of that leverage recent with treat. underway Perma-Fix vitrification this also that the some drums also volatility capacity for the by there for residual growing of broaden underway in and performance couple are our receipts of a excited Perma-Fix treatment Construction due our And facility, us at beginning deploy fluctuations other to and quickly streams waste otherwise in we especially the applications. non-bulk at will

our project tank waste project He'll opportunities new for we speak at about could excited that opportunities transformative the will may talking and recent our treatability Finally, waste Lou Hanford, are Washington. also the be in more medical moment. a about treatment this about be for out subsidiary. arise Centofanti business our of These

which wrap than to adjusted beginning waste XXXX the more as realize growth within on XXXX. from our in our adjusted EBITDA, positive to our impacts increased So and up, by revenue sector threefold treatment evidenced our growth EBITDA, initiatives over are

move line I will believe plans turn Lou along Lou? the growth potentially improvement going our on a in both award of advance we of in expansion QX will help objectives significantly XXXX, should sustainable needle Our closure with revenue we anticipated projects M&EC they the confident business our for we now pipeline, see of in bottom and and top in have call our the when growth of coupled current XXXX. Based at bid a Centofanti. each over to and business market our the ongoing set services that our few materialize. and transform in could facilities, with that additional QX, base stage forward, remain our

Louis Centofanti

you, Thank Mark.

shipment Northwest. waste of Specialists, Disposal waste our Perma-Fix Control for transportation As facility recently at project waste of to treated Environmental the we the the Protection of Washington Mark at permanent stabilized deal coordinated Federal Hanford. Management three phase in and of announced gallons and River We we The Office successfully have first tank Facility Waste subsequently Richmond, alluded, from of demonstrating at low-activity tank Office the Texas. approximately Waste a in disposal completed its for Andrews,

low-level initial is has completes the utilized following on processing treated, those long-term study. stream treat EM principles been effort company goal to this commercially the commercial was disposal. plan in part disposal reduce that derived time from has of shipped time, vision stabilized you for cost to been for to the project in participating the and this waste [indiscernible] complex waste of initiative EM for tank for a test the facility a The meet This For to have phase company. This our the bed that off-site proven and of criteria. developed process DOE some three-phase our Hanford waste waste based first

requires our finally, treatment completed the bed phase our test of strategy next Now the attention have subsidiary. the within our the that demonstration, approximately are XXXX initiative, on And we on one medical gallons. shifted which focusing we've first of a we note, phase final of

where Once call U.S. much so one Ben, then are providing our as under while markup efforts helping to requirements, can new we ourselves subsidiary. and happy markets. have in attention capital if much to respective fund third we'll path in need we've back now, Europe path partnership Raising Perma-Fix's regulatory validation, then in be of initially since in working can we're our we Polish I'd international more further will detail. the much will the of to The development mitigate we'll strategy, around will Negotiate capital now waste in This first, capital for capital, we markets our efforts - the cost milestones, grant. help one do the have under strategy interest in focusing favorable On U.S.. Italy regulatory believe believe the indicated we the working in to strategy, several streamline a report in a costs note, financial for groups, I'm hit and terms. we implementing in our certain Poland But approval Canada focusing and cost commercialization willingness results subsidiary is that accelerating with with Specifically, significantly effective They've turn presently that more mitigate able streamlined, believe who term on better we discuss dilute we level. milestones and partnering near this more and at our lower believe over the our turn we is short-term to hit we terms. like advantage raise Canada, [indiscernible] to which certain be will to process. seen, this the more eventual as

Benio Naccarato

to $XXX,XXX compared X%. $XX.X our fourth I'm from Lou. decrease and going $XX.X of with a total to revenue last fourth continuing for million, was quarter you, operations million Thank year's begin the revenue quarter of or

relatively was to $XXX,XXX modestly or Segment comparable revenue or revenue segment Treatment year, our was prior down X%, with X.X%. by Services Our down $XXX,XXX while

The drop the completed timing Our was while lower Treatment mix resulted Segment's projects waste and this production, for available year with in this in in compare year. new both we more services backlog but leaving revenue won with waste related, when year. project shipments prior projects were consistent

the XXXX. year increased year XXXX. Revenue the in XXXX, waste receipts Treatment million for revenue the was $X.X prior ended our $XX.X as over Segment exceeded our compared million For million $X.X from million by year by to $XX.X

and temporary Services the by in contract certain $X.X projects in down revenue lower million On a concluded revenue. large XXXX in as 'XX resulted Segment late was delays in

Turning of to our sold. cost goods

an was or year, Our that's the total million fourth increase cost million X.X%. the prior to in of sales quarter $XX.X in $XXX,XXX of compared $XX

year M&EC prior to our compared closure $XXX,XXX by our $XXX,XXX increase this increased and facility. costs was Segment Treatment Our reserve to in cost due at

we are increased disposal cost to completion. estimates our getting closer As as

up this our was Segment incremental of sales project-related expenses. primarily $XXX,XXX, were in from Our Services costs and

quarter, million the I revenue the services shortfall, was increased for $X.X $X.X closure reserve gross this were million the at treated this of the accounted remainder at Of $X.X shortfall. we lower On line XXXX. profit mentioned, for compared $XXX,XXX, of offered in due million to waste as M&EC, mix and and while to

M&EC Services charges XXXX XXXX revenue our from of the in our ended For our profit to Segment, profit $X.X XXXX. gross respectively, to again, million which the $XXX,XXX, the higher-margin gross more XXXX, segment we was revenue. lower-margin as $X.X compared million was for year received profit and million the mix, in offset Treatment driver a included year both decrease Revenue closure. improvement for primary and gross related $X.X the

Our last year. offset public $X.X company [indiscernible] XXXX. $X.X an of bad by for audit expenses to a costs a $XXX,XXX Lower were the compared million increase settlement government legal G&A going total of related to expenses quarter back debt That's $XXX,XXX. to million and were expense

the G&A experiment. XXXX, debt had and which again the were Conversely, in by due up year, the which expense, bad to booked our offset our we in XXXX, higher debt costs payroll expenses. $XXX,XXX pick the bad For ended lower year company of contributed to a public $XXX,XXX

was the included shareholders and adjustment common in for $X.X last continuing income compared impacted net tax the for quarter common operations tax of to quarter quarter to year-to-date to operations, results of a $XXX,XXX. compared Net taxes net Our adjustment both of related was attributable were our income income to which a provided This was by last tax income continuing pickup of income $XXX,XXX $XXX,XXX office, shareholders. reform, positive year's from for to also These net the for net attributable $XXX,XXX year. million.

related In our M&EC addition totaled charges asset approximately to to at impairment our million. reserve that $X.X and adjustments and closure closure location

of per Our prior income compared $X.XX in total to share the $X.XX share per was quarter for the income year.

for press EBITDA was Our year this year. morning's compared the And adjusted $X.X $XXX,XXX XXXX, $XXX,XXX million in XXXX. quarter, million compared to EBITDA defined last adjusted continuing as to release, operations $X.X from for was in the ended our

balance Turning sheet. to the

closure alternative cash, quarter, up $X.X bonding Our down allowed $X.X bond cash improved million in balance our of secure to second to by last the transition result $XXX,XXX and used company a the we free revolver our which pay of year. balance which as about million entire which was

down to large $XXX,XXX was Our of end which 'XX, accounts were timing 'XX. early a due receivable and in that of the the collected at collectively was receivable

this million, in unbilled receivables, our were Our Segment, $X.X up Treatment year. a unbilled was and long-term, again current related to early billed which timing

which unclaimed our about $XXX,XXX totaled receivable, and other assets our $XXX,XXX Our approximately - XXX a up assets tax of were to property, grants receivables reform some up to related to and were related tax other related $XXX,XXX.

were policy, $X.X which Perma-Fix the up closure the at million related other Our assets restricted Northwest cancellation of intangibles to the cash. and freed down

up current by which were the to liabilities inclusion the $X.X $X.X in at entire of XXXX. closure due primarily Our M&EC, million reserve increased million,

was waste million compared at end of $X.X Our million $X.X backlog XXXX. the to

to current. Our from reserve reclassification the long-term full the as closure revolver at million payoff our liabilities long-term of were result the of down and M&EC $X.X of a

Difficulty] debt, current Our consistent year. with including is prior which debt [Technical

year-end million, owed primary to was $X PNC Bank. Our total lender, debt our at is entirely which

capital and insurance of was M&EC and and - the $X.X respectively. negative compared $X.X $X.X 'XX end is million to in million XXXX. The negative was Our 'XX, XXXX closure working $X.X a accrual million a at million

in XXXX. summarize our I'll cash activity Finally, flow

continuing $X.X by provided was million. cash Our operations

Our $XXX,XXX. discontinued was ops cash by used

provided Our which for spending. of by was $XXX,XXX net activities million, $X.X cash used is investing capital

With financing operations Our for now our $XX,XXX and proceeds consisted I'll that, questions. and call revolver. on of for term from was discontinued of the our property which million down $X.X $X was million operator, $X.X sale of payment pay cash open million, used the our note

Operator

[Operator Instructions].

Management. question the Barr Tristan of from first comes from MTB Our line Asset

Tristan Barr

are I of on bidding for Service the at coming particular, go can there there some I end at contracts are was believe, two into the year. bid up side. that wondering the if opportunities large out the of you In Hanford

Mark Duff

Yes, opportunities, of is long. list this I hot XX, have a bidding we opportunities guess, Mark. XX,

We along a any have time. given five at number four,

positioning currently support DOE are are and to We those we're bids, [indiscernible] summer. expecting fees has they drop that our announced this out

Lou it certainly very in those based those we on So of on that positioned we were bids, will. where work mentioned, in anticipate don't we're but that the side, our for have which processing be we forecast, should those scope well

for preparing those. yes, we're So

The won't we out detail already sites there, the have a too are have for that and a second-tier I on, in out we of out much supporting DOE with going Engineers, into with well. number other Corps of as bids we're going that Canada, working get we number have several subcontracts

Tristan Barr

last around The Plateau sizable. Contract, was the quite time

know I are tank assume the time initiative's that given partnership you and with bed positioned even guys was that test feel around, that as As better the recent I you Veolia? well. contract the success this both

Mark Duff

Again, scope with primary we Yes. firms haven't we we scheduled. have more and that firms, we meetings work, do when we're seen - like are met the - the those, already on bidding feel those of but

a So your this I to better yes, position answer do question, like in time. feel we're

are have bed and a test strategic timely, lot with offer initiative. We very where to and we it's

we speculation bids with very on anticipate point. at better having this those So do strong positions

Operator

Instructions]. [Operator

a line from comes Private the Brown, question of Joe next Our Investor.

Joe Brown

far how have as I'm how how what how there level far put some - you you that if how to some I on to wonder, proving - got can I before. curious some you as - had about it. kind advanced a it you and are you when point are or of you partnership certain quantitatively, far - be at project. In you, Medical number of words, long feasible? wonder kind just quantification your is other And gotten

Louis Centofanti

partners demonstrated was The got we of progress that, and our quantities tech have in The ran labs any that acceptable operate use was when with - really approved Medical appropriate XX it Imaging. further medically in on couldn't under commercial generator The progress the that doing a are really they in for is demonstrated all was in that by problem or or could FDA use we produce - medically approved we're low funds these into that we a facilities a approved conditions. quantities we for country. in advantage running or have we than now

what how expect could demonstrate out forward we that how So many goal being out medically that of to out be step many is the - a system. our of at can get of units we - used to able produce a is, units

in would that's We be the So the what try is using really think, seen and our tell which and to next can partners from show numbers our labs, at and step that then both which all what it those people, confidence, should to will funding. we those numbers data of our think, progress we least to we've demonstrate exactly system. help increase us are,

Joe Brown

So are are. you you that saying the ahead. are tests, you running Go

Louis Centofanti

running other We probably the Your tests would are groups be running are supporting are tests. question that these we today?

Joe Brown

that tests, there running one in work? are three Yes, are and like tests mean, how you each mentioned-- sounds it I these you're running different tests facilities you different Canada. does in running country, or Italy, I'm but Poland saying,

Louis Centofanti

works it with Polish a grant and has in - the being The Poland the partner us from funded as is by they're - government. we that's a said, POLATOM long-term being, Yes. way been with run

the with our ago, raisin tests past. the of their their presently we be using so that in of very our allows or And in the are running system. labs our a to which month - and use in reactor, company near tests which future system a will discussed existing It's upgrade Italians, running an are announced technology. using We working Canadian we've one them

and going today, two is on start. one got about we So to

are considering We it. using

Joe Brown

long are putting you money? these - do you money are how sure - are to I'm conclude - of we it do not thing long out it? all, of you validated? I probably curious, think is into know, so will how are you getting putting of where some you're but I What I'm for tests what are of going mean, to into they - I'm you I'm most it? will doing testing, What putting them get the it And this, they are first sorry take think you Yes, - their the to can... take? if out cost, how

Louis Centofanti

market, all - them they some and undefined the their agreement then would agreed point. works, running with our technology with then at the they have, if our could are what that three use - we it, use but Canada. to with have at we again, satisfactory, costs, use and licensing will would could then be We appropriate of - tests that them and satisfied negotiate will point, a licensing in these They various allows are tentatively each if it's this at we which of in they this their think is some it finalize our to agreements, Canadians, agreement they example they that and resonate sort

let's for at work front So it see market agreement. works, out then make sense to it end, and an wanted if your if the we

Joe Brown

time yet. what the for line know don't results you And getting are potential

Louis Centofanti

stages them point me different where of at it. hard different, very something this value drivers in It's little are be of coming and different - for give out they all guidance to at all there's every case. fairly of No, might are any you

Joe Brown

still sounds right example, out, if could using proves into it like this. it But they for sounds Canada, jump like, it in

Louis Centofanti

they'll to go regulatory Well, approval. have through

we in - it regulatory would the next they may So there case, if after [indiscernible] a every that barrier demonstrate that be is step

Joe Brown

another - as for kind field. gas just see about very I'm area, expanding the you're gas far like, of over itself, what natural a that. oil the a you do if all demand field tremendous exactly to what wondering had there field. I you're potential trying - mentioned example, gas and is seems sure as has doing there question up Okay. cleaning - is Fracking the you is What in natural it not world. into future, but I'm get

it. just of ton your wonder revenue I there. a have what's potential We

Mark Duff

Well, that Joe, West fields, waste up markets and to Marcellus we're the protection we're question, very we're experts doing literally protection answer in for the we there and a small shale, Pennsylvania, Virginia Ohio. and and And gas management Western expertise basically, being the the have in applying natural what my experts. is,

are water for occurring manager providing of million then companies We waters million solutions which you that's you a is. of to have water the their NORM basically And X assist somewhere detection, when you naturally efforts, concentration material, kinds that's basically, and where and gallons generate can call of treat we to and and you you you of a market amounts things. back And radioactive frack, treat raise we to very out NORM, And where it. it which pull large generated well those are inject when come dispose in XX that into of it, that managing before between you material. and the of compliance

different companies a getting sign there, one. to with ready we're So we're working up agreement new with several

We the gas natural now clients. have Services with place Master in Agreements XX

Pennsylvania. the X a is Some to in Right of $XXX,XXX now, probably the $XXX,XXX revenue our Big range in year.

and to hope XXXX. of and then bigger that If much in through these grow the small, just consulting operations there. some agreements a we'll some it's through, have here pretty equity of go So stake

Joe Brown

Is covering treat obviously I long which there they this mean, to - fracking that, for had up is a water. time. they've they efforts it... that stepping are new their or been regulations have Are

Mark Duff

very Yes, difficult get growing states to changing water requiring very largely which very ponds, and settling more the are And things and the changing, industry of for reuse treatment remediation it out, or for time. basically, is Pennsylvania. quickly now the treat speak, the moving all permitted filter disposal. aggressively and it Western systems, to obviously, time. are from is are all to Yes, so the a Joe, water are which they And

Joe Brown

had waste. a also finally, tank the question I Okay. about

You demonstration, three-gallon did of moving now - was the into and you're it gallons. thousands

and know, complete? test you you yet do think that will So I how don't started that take to long

Mark Duff

basically was, in at it a the in had nice is - were I is or disposed along put Texas. defined next that in we - way And we three be simply an a move or the accelerate it the November, treat did WCS the really Lou stage in next mentioned, Well, DOE believe to that's to lot DOE. that we're to out level, or which in proposal delay December that gallons of as release, we the Things working press the And it. XXXX agreement or a change gallons. could more with

But So disposal in requirements we're obviously, the regards right are test. of working a generating meet results that they were for in to with now. Texas. report all the And this DOE final we're on DOE we to positive, to because able

with it. forward So are moving we

Joe Brown

are mean, that experiment? that, I they funding So

Mark Duff

funding is [indiscernible] it account through DOE Yes, positive their

Joe Brown

any cost So you that doesn't money?

Mark Duff

contract Department have No, the it's of with we a Energy.

Joe Brown

Okay.

we're don't made idea some you basically, what, have So first wondering March We're of you quarter, at that almost be the things mean, my a all good a are quarter Difficulty] right, all here. guess, know going. I almost forecasts, questions. end must the done so strong that's I general with will this I'm [Technical just I the pretty way

Mark Duff

make is still looking to so we're in waster where claim process it well. but the quarter, this we're at are of not for Yes, ready evaluating a point the receipts

Joe Brown

You are optimistic?

Mark Duff

course. Of

Operator

Our of from next line Chapman, investor. Bill private question the a comes

Bill Chapman

he that will still make now, read does you to rumor, if right positions were at Is filled considerable go a speculation yet Rick trying is of ago, the Energy to the that of on Veterans empty Perry are and that better guys Department Hanford? an four number little going testing A with they I months progress article weren't that this had about Phase for desk and a hamper II department. staffed the DOE the move, make to

Mark Duff

are They headquarters several this some well Mark. that a in things address. a that nominee and because hope this as some morning, be speculation some there to will of this has an point. we on of all in last Street This an the accelerate in the moving have that to question, your we we forward. if could really left, our there is be things the we'll There's Journal close, hundreds once been confirmed, get impact one initiatives. at there know in of nominee to at assistant be them, taking are the was, but which lot we significantly TBI. kind test these have Bill mid-level, with types new levels were apparently, to initiative. But regards lower backfire saw things can we confirming of visible the the, answer things I these more people think the bed time Wall this secretary, that that and of, increased focus happens, with had Perry to will months yes, will are a are Certainly, communication Rick

So I wouldn't anything down. that to anticipate slow

Operator

the from of comes Fine, question line Stephen Investor. next Private Our a

Stephen Fine

My first this in what spent back question Medical, of $X.X on your How million reading is the million on from tax of much thing? consists wrong, maybe, on the you plus add your that bidder. I'm $X.X

Benio Naccarato

EBITDA of is the Well, exclusive tax.

from Yes, back. that the reconcile do does income. earnings our it So it release, we in add

or at of of depreciation, interest $XXX,XXX the why Medical, the and characters the M&EC about it is So you'll tax, the and and unusual of call closure $XXX,XXX. then is one sort usual we see which costs adjusted,

Stephen Fine

much the the Medical Wasn't Medical? for - the how was year,

Benio Naccarato

million. $X.X

Stephen Fine

did because the going a last there about year I mean, you're that statement I year since understand, mean, back. still that but was you didn't over cut time stockholder $X million. million and I what be some only that's a to was I've and $X Yes, been But significantly before,

that go down? is the is, next to then, question going So

Benio Naccarato

Yes.

think significantly lower 'XX about I project. the you're - anticipate of financing midyear probably until a only shareholder, find so reduction you recent if we started for costs we that

Stephen Fine

you've that fine. about we're other firms spoken up is, some right, too - started the you because you capitalist Lou to that say I too to I Does and - go better with were low thought All My foreign giving go with the - us second to folks, question if is him was medical don't talking about much, you investors. when venture for much? know, approach the imply isotope, we it relative when when - I they heard want these - talking

Louis Centofanti

we there I wanted that The we've to way not to what saw we and spend, to have was to early stage. it's very and a variety money. very a of firms raise good about in this talked was limit we as it mean, idea financing

be So expensive. very yes, would money the

of terms where... In

Stephen Fine

[Indiscernible].

Louis Centofanti

make Yes, further so road, cheaper. and by the getting a down it financing could little easier

Stephen Fine

to lines be mean, dollars answering - But time you or from cannot can going that. really is we're whatever? that going question some year, no talking when you this the one's quantify on when to five see this so on I one years,

Louis Centofanti

it's clear it today, no. - do. operate we're because place how not are In they what and it's they even No, less control the we in of

this give to at time of it's see So impossible numbers. kind to any But hard point, very be. what it's line I you would a think realistic

Stephen Fine

five years we be story. go. could same Okay, sitting all just with right. here I the I'll from now let - so Well, that

Louis Centofanti

us I don't think live now five story. the from will years have here and same board the let

Stephen Fine

works The you words be that other capability whatever up set shift can that Veolia if Hanford, in processing the something In is to involves, All that let thing, in plants? plants? other out right, other that can that me gears. moved

Mark Duff

the you we Well, would it the that. your Veolia could yes, want plants. you other to question, answer do not But could deal with likely to move GeoMelt to

permitted the thing space valuable for is I important think the Steve, very new is implementing, leveraging process here, we're that technologies. which is that our

transport can to waste to otherwise off would transporting to attractive it. in may that it be facility, better you example, another not put For Richland financially

we right there However, deals similar we of to types now, we're like with of technologies leverage much partnerships. to and a it where would, was as this that situation other as pursuing wanted put if kind

Stephen Fine

All right.

So all evolved into the - question existence then Hanford? capacity you the then handle of Hanford, to of the does you on got logical is with question deal subsequent the phases the the is, impact Hanford Veolia your things of if then presuming

Mark Duff

on question. not tank waste at great all. space. and different impact the a there's processing plenty whole at parking TBI all. No, No lots, a It's different That's building, whatsoever of

Stephen Fine

I II, $XX not yours? Okay. albeit that for I Phase being million do Am Phase also this you you somewhere, read II if get get correct,

Mark Duff

they're level. of itself. that contract in fund me vehicle stages out guess, you and $XX funded its level that's contract be the that up the put necessarily - - it level contract, million now, to I it if different place we're of Yes, but is the think basically the that. a that's funding sealing, through when But Steve, on going to could let But not that contract approval for up

Stephen Fine

Phase II? to Up

Mark Duff

Correct.

Stephen Fine

you I I from it the an I then the you the XX% what's issue beyond last we'll end commend the, - I mean, But and I I year. the you year, next deltoid you the impacts mean, in negotiating. and is at trying into and But to let's idea, in of could guess, correlation where fabulous. other have be do what, on will you're down is, revenues-wise here? clearly, start and say, is you're guys understand or bidding areas, again? of here - the mess. guess I situation sense Phase have we Mark, going think guess impact, processes, I do we sales-wise understand of same a diversifying some you. have year government government III, be But the I do sitting and be that's this of offset

Mark Duff

a to that we've come they want any dependent in of address project shift don't what mean, we've on about make It's part very so expansion you're shifting to people I you you get your in all but us. for contracts as Yes, unless we difficult initiatives, this revenue. the business methodically, is, very it to script this have you, revenues basically can done a with number up talked market you because, you

to revenue and our very many receive, and broaden of volatility what make say that just reduce So that can All side, broad revenue can as of at you three strategically, the projects potentially capabilities what three best and sure won, the construction risk way through we've profitability. to can to opportunities we can you is that this receipt services I sites you broaden treat our make to find as is we can. to increase accept diversify amount reduce the add the and and new as you can you get can you

X.X when haven't be this lot we'll had optimistic in almost activity of increasing our capabilities. we years, we a So sodium on lot there's at share regards value only we're years, construction are sodium, on going we And And these have in projects these a - do lot there's Veolia new the country. [Technical And with facilities that jobs we of Difficulty] on market treating are haven't of going don't had been and construction competition done, two treatment in deal highly our I've which and to right here only and many years. a and the a that'll the out in and sodium now. providing we finish there. more of a side, commercial be lot capability lot But

a to amount waste reducing are that. the lot capabilities and going risk the we fund, opportunities they but to government's we increasing Again, what what much doing shift, what predict going our So of of have. there's you're is to how and going can't associated we are with by do,

Stephen Fine

type same hazardous the into ship where facility, Florida would paradigm constructing the you're there? apply you wherein, would - other hazardous say In stuff capability, you of this there,

Mark Duff

it we to will hopefully we hazardous that in One, equation, until Hopefully, facility in side on - don't detail marketing the has on right stronger the of into get the is last call, market into quarter, becoming and sensitivities Dramatic right campaign yes, on increasing the detail in Yes, our we'll the capability on no, the our But hazardous-waste next the very increasing get next seen because too on in - increasing on to revenue want it. Florida, the next and your focus much we - - don't over initiatives: side. focus We've these we capabilities. quarter, increases dramatic in focused waste two and side, commercial there. dramatic two quarters launch

on So we the amount commercial waste more we get that side by of be taking very lot the have July a there. high hopes increasing frame, time and down we'll commercial waste

Stephen Fine

on going say to All to so things, plants is equipment right. initiatives And do different there's three then, your to which enable relative in to - construct fabulous. you

So that are There correct? heard is three. I

Mark Duff

correct. That's

One of these...

Stephen Fine

So the being internally that? all financed, of construction that's

Benio Naccarato

yes. Mostly,

Stephen Fine

is And how much that?

Benio Naccarato

amounts, $XXX,XXX external now, $XXX,XXX. or right about Small it's

Stephen Fine

get I just Okay, stuff. clearly, you're esoteric this slow nice I Look, and a supporter, I've to guys, think understand in And Well, how you're as moving time. - proper I'm a all you and the said right. is, your would hope spot. like for forward. it's all. about, very very actualized you to world I that's thank what just see, I to perspective. its uniqueness, more to about just know And you're your in And Anyway,

Mark Duff

and just Thank really to new you, point Steve. out, do starting take And to we website a have it seriously. we're very

that out there the upgrades a things pull of to can changing, trying and are we hopefully, So too. press get for releases lot are word we on that

Stephen Fine

I going, And get going in to where you have going way, what investment right, in we do. you. when earnings you guys is, that I guess company are the like a your benefit line you forward I that and in to the way to to But give I going you - people. what that, look bottom into the much, an wrote but thing even I 'XX. you it think And you was great I That's were think get very wonderful somehow, your 'XX with forward look thank information all. to will just - that presentation generate, investor Anyway, the things. website, generic website, encapsulates the the I on more if what's that if to I investor, I on your faster capabilities guess, a by can am the are be, And more I point it I and and and there am stockholder a you can wonderful. the people very - - all I'm at, fashion, the investor, look an to mean,

So thank you, bye-bye.

Operator

comes from of the question Chuck Investor. Our next a line Dickinson, Private

Chuck Dickinson

you in that on back quarters many that new that to many, couple waste quarterly the of just You that look encompasses to have I you figure and to the will in out, think quarterly million difficult million bids yet, find have of And years to a project a a doesn't revenues, you range. $XX mean, find back at go back to isn't this you had go go sequestration, mentioned you don't put number that if but go basis. to think I the fall I I terms the from think have $XX that and revenue several years, quarterly a in about I $XX to $XX and trend, revenue to roughly it's million million back everything government, range back, go

revenues are I to say, difficult really not project. that would So

kind of are stuck. You

run for obviously, below opportunities. You've wonderful you're work have working some that, leverage. the you I with things to do, save I that up of doing top yourself that to that you're beyond done singles on a here I to line would hit also some the projects see But home line, guess, and you couple want

encourage So just that approach. I sort of

go grow business, to obviously, events that way place. then I think of that's the the takes one right sustainably, base transformative make build to these hope that and

to be time of line that incumbent there all that able partners not we involved, potential and they're us going now is. know to tech they're of be their is don't a that's requirement in with would The that's to for going to time second isotope upon make Well, what the line hands, their in the I lot availability terms these regard ignore. a XX comment partners

place has all you that it spending you place. color seem taking when field little that earlier has quickly any think, take So you to on the I the Washington, bit going how has hearing don't see the in that Canada. give be moved down as not fall question you while shutdown tech mentioned think, of does it you ball be, has what A that look other in can't spending, going that these know, out personnel project budget, were be on I positions budgeting. to like of resolution well? the might anything upon but in has of I industry terms I line regard that terms that process. for industry the - of change, that's there increase was think you yet with set toward DOE Can nuclear of the to do, they're nine some the an set, time them some shape, But it's of given that up But and been move, taking cleanup, out the the was any for one actually to hopefully, waste with DOD to within principally phase had as occupying the been now months, and actually they indication, sent do how are come a a have, And been one budgeting to budget or the budget not? ago, budgetary of to in XX, to line advance to that the six they're new incumbent months going reactors, political favorable or do we're you going to going continuing people side,

Mark Duff

we - Yes, well, of the that few hope run Chuck, referring quarters couple the to in home are I you completed. next with

or of little a Energy revenue the know, to site So your regards is question or will new on we Corps needle Corps starting alignment Under you federal a federal project continuous from of the more. To as budgets able with projects. restricted answer be bit them. site like to with move hopefully, that federal and resolution, our Engineers a the site

do any you're the line-item to by they and Congress. budget not new unless projects basically, identified specifically are supposed approved in So

a waste lot generate happening. from keeps than alone of limitation that can projects So

these on the X% to receive XX% each So new and that passed, one will want question, we project over to projects to think years. handle increases answer ability a waste actually that of definitely waste. - although up cleanup and that our your to more generate treat begin, when previous it, and can And that DOE I say, budget a our with [indiscernible] budget lines I project of version

or proposals almost Corp we side, have we of in for Department one have to budget so, increased more a waiting an Energy to it numerous on of those anticipate does been or for And a approved, of side, gets impact if but for approval the that year, do war. importantly, happen receive the months, Engineers even make place on them

to until announcements even the we're can't And doesn't mean it but budget's won't though lose to announcements. win we're going final. they those doesn't mean make going you they those that So until make

budget don't So it as does approved. us, federal have when impact have a you contractors, most on big a

Chuck Dickinson

Right.

you almost kind a are have you place. take step like forward, preventing the feel just ready can with you things moving are sounds to war you need go but just, it So to next from that of,

there side of there market of that's is to the increase So on that's well. I one solely an Then relying assume share goal hopefully, - side to not increase, on whatever NAFTA as increase other a whatever it. increase going it looking within be the is. is

Mark Duff

Absolutely. Correct.

Chuck Dickinson

well, EBITDA Okay. All see adjusted EBITDA happy that is positive. to right, the Keep the - still so that going.

Mark Duff

right, Bill. All thanks,

Operator

the for the Mark Duff closing remarks. session. turn Ladies and now question-and-answer gentlemen, we I the like have reached end back to to call of would over

Mark Duff

conference everyone call. to I'd and like Again, fourth participating year-end thank quarter for on our

December I $X.X year in versus As for for ending earlier, mentioned the XXXX. million EBITDA $XXX,XXX XX, adjusted we've XXXX achieved

we improved income 'XX see excited another year and $X.XX to able continued look and of to earnings net and growth share per positive 'XX continued are report position to and We a in forward being about profitability. be performance

a we Segment, of of processes Northwest. and very West Florida bidding our our number growth diversify Pennsylvania our the as waste continue in organization NORM opportunities juvenile exciting revenue we and to improve are in Importantly, in within to segment the strides new we and the making treatment such and Services within facility treatment Treatment see

are So support are the Hanford appreciate very look much. near providing additional we about from several in forward and project. as it you along well. all, with Thank excited opportunities arise continued above tank to opportunities everyone's potential future. We the And the that may international updates new

Operator

conference. This concludes today's

you disconnect You participation. your lines at your may this for Thank time.

Perma-Fix Environmental Services (PESI) 14 Mar 182017 Q4 Earnings call transcript