PESI - Earnings call transcript Q2 2020 | Perma-Fix Environmental Services, Inc.

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Operator

Greetings, and welcome to Perma-Fix Environmental Second Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Ms. Alexandera Boudi, Investor Relations. Thank you.

begin. may You

Alexandera Boudi

morning, Second Good welcome Perma-Fix to Thank XXXX everyone, Conference Services' Quarter Call. Environmental you. and

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

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

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

Mark Duff

everyone. morning, and achieved COVID-XX the second to minimize resilience of All corporate quarter right. our of employees the stay XXXX, focused in impact implementation the the We plan to profitability of managers safety and virus. Thanks, good reflecting on the our Ally of

QX result, revenue of we negative XXXX, increased and a associated As on XX% with approximately over generator adjusted waste of despite EBITDA shutdowns. achieved receipts impacts several $XXX,XXX

on QX, due than increase, As realizing to slower sustainable Services in with bit continued although we we're revenue to our anticipated Segment waste receipts our a clients. of COVID the enter impact beginning

the and Services a Segment for opportunities robust remains of the a Our for of approaching number sales ongoing million and with XXXX. pipeline backlog remainder significant $XX bidding

several revenues, In there million worth addition, over in This proposal past we've competitions. several submitted quarters activity the values $XX months. support in and proposal the the bids pursuing will of next to successful flurry these Services in the are opportunities Sector larger revenue sustainable if we're in over support several

more same financial results few to increased to take the sizable the Jacobs and deactivation, XX-year As contract recently the and XX% a provide discuss team, detail. by pleased XXXX a participate especially of $XX highlights quarter a support. moment waste revenue will who I program removal quarter Ben DOE Environmental by financial to was relative will Overall, million. to multiple-award that nationwide later, a led announced, we're now second our Office facilities from and the in address management little decommissioning in Management selected in ID/IQ to

we achieved of due same the We a I'll attributable $X.XX second compared the EBITDA lastly, for million $XXX,XXX share adjusted $X $XXX,XXX to moment. $X.XX period to increased share shareholders approximately a last of to revenue common compared $XX.X XXX% XXXX $XXX,XXX in net the same million. year. for to of impact Services or for COVID, for last was year. revenue Segment The Our income And quarter to period the or and last a $XX.X period million of to same Treatment $X.X discuss compared generated year which Segment million further the

continue and ensure technology pandemic. the is in highest all to accomplished and we've QX remained side and our This Before staff say impact time-sensitive new These COVID increase our share and of commercial initiatives which quarters. treatment to clients the work coming waste year, backlogs. with to and few initiatives our the cleanup on date in a of our while that COVID-XX has the market business processing the team. our the only and home isolate was continued of very rigid Perma-Fix to into height COVID-XX for and functions our We're I our within real impacts that several of we potential within our our and am cases continue not and committee strategy beginning implementation business and our in requirements developing case offering communications growth in through nuclear by into field in sustaining about continuing of our broader COVID-XX all of the to increase further opportunities broadening demanded a our that limit throughout expansion permit for succeeded project Perma-Fix workforce and that the to potential been soil-sorter QX pleased services as to only our had the our and that innovation health drove and enthusiastic significant internal -- manage creativity our unfold sector and families. modifications identifying very deployment energetic for of base in include: this our and but subsequently XXXX, expansion with one through were included a approaches confirm both projects operations priority. well. we several of during strategy By limited the safety The company, company, field pleased of value, our from limiting require to months adjustments wrench was to monitor, operations, able working cases plants to to the expand

QX firms, saw business. most to effectiveness management working the made with our it daily a environment on that communicate in basis that accustomed we're plan the with in waste and difficult As to changes

that We several service are QX the operations operations, impact the fortunate, waste were we and several continue continue in which the including we clients supported this that within tangible at field be in Hanford opportunity due program and projects when and that and safety in leadership the field. however, had on ongoing operations, These in to provided the operations generate cleanup results to our clients have trust our period had COVID. difficult from project have to our our down clients central to plants most of the site. underscored And ship DoD relationships value to our country shut a in positive our field or during

our radiological call, workforce, and strategic Bank in in environments. maintaining furloughs Perma-Fix to plan future availability in These through to in allowed all trained in are of the pay our complex PPP who allow of the trained, last securing excess holding successful check loan onto and recall discussed avoid of highly continue for implementation under As The operation assist growth and protection Perma-Fix $X experienced by this QX. note the program. through stability our nuclear quarterly of was layoffs PNC million a staff, promissory funds all Perma-Fix

Florida, our states modest in to with Washington we in the month get have While communications slower clients. limited we and are Tennessee, of our July. our continue and beginning a of COVID through This increases the including on actions in and remain see ability we the to to treatment the the seen procurement operations, optimistic in With and primary silver pandemic, yet waste about from all through generators anticipated which particularly generation in receipts increases California, applicable of impacts September. cases is waste and resulted August operations, have increase

Our nuclear through QX which with increased revenue most of services our result of least. X in quarters revenue should activities sustainable next the the remobilization in before QX, completed end at segment

and has expectation and the few technology, newest has been value and system next applications. in tremendous clients, our to has be to the processing been operations months deployed Meanwhile, continue Diego costs through radioactive system, published dredging position exceeded over and new of will the reduce closes. We procurements XX,XXX upcoming year The a of which dewater radioactive anticipated we Perma-Fix identify week San cubic in to in we latest as This innovative for opportunities Perma-Sort discussed X,XXX segregate months. provided cost-effective to a the soils just risks yards technology tons following few the use the nearly continue a quarter, engineering and the schedule fiscal to of application present the through clients Last to launch waste over has of manner. our performance developed that technology and our QX. save to

to system a fabricate deploy Our second months demand. coming engineering team and is moving Perma-Sort in support to increasing the quickly

Our continue involved we as Treatment well. Segment progress has realize growth as not our Segment to only Services strategy in our strategic

the be quarter, -- our and Overall, vision note, Ben, market evaluate ability our increasing Treatment several Achieving while over and than financial call with to step attention new company to our to Services offering revenue a discuss rather the quarter. unprecedented waste On our broaden underscores We've the you resolve period. little the we've to in this commercial subside at take our I'll has detail. and together. clients discussed in strength turn advanced Ben? while home utility we've of to delays momentum, the during and the and the will results the this all shipments, during and team during our While period teeing sitting more the for needs in waiting over meet back their of this, up management the this and period XX industry added sectors to strategy back QX When a changes. increased storm increasing to both unique our sector over the really who delivered adjust in positive XXXX team. that couldn't proud I challenges of just and

Ben Naccarato

start I'll and Mark, you, Thank revenue. with

an increase $X.X the for from operations million second Segment, was from either [Indiscernible] our quarter. as Segment, of XX.X% compared This is our most driven most quarter the improvement second throughout decreased In driver in XX.X%. or increase $X.X continuing with million was activity, closures $XX.X million of second COVID-related the year the waste XXX.X%. sites customer Treatment by revenue That's XXXX of closed of $X quarter of increased customers in million in of the Service quarter an XXXX. for of where revenue increase in the total million impacted to this quarter main a or $XX to the the improvement. Our receipts, restricted revenue Year-over-year course, or of project our

ended is months X June million compared to an growth or $XX.X XX, the revenue of XXXX, $XX.X For million year. XX.X% from our prior increase million $XX.X at or

project the increases the work, $XXX,XXX. lower compared $X.X fixed they a were variable accounted up went Looking where for at cost Service of million in in our increase direct which costs an by partially in offset of million. resulted reduction revenue this marginally. indirect sales The main cost went quarter, million in year, expenses, These were about sales the of related increased million fixed to the of prior from increase, while in while costs million costs to $XX.X in of increase also revenue up was the Treatment $X.X Segment, facility driver $X.X Segment $XX.X drop of a

our negative to the revenue our saw the receipts in due waste mentioned Treatment As on COVID-XX. significant discussion, a impact Segment

is productivity result all As we able program -- will Since without that cut of and loan loan, have should recognize or drop. incurred when employees employed was likely the company benefit recognized the layoffs that PPP quarter loan the the keep if -- of about despite be payroll loan. payroll to includes totaling it avoid $XXX,XXX significant a costs protection forgiven, a would the it the been

revenue was XX.X% Quarter about gross but of profit. loan. to drop just which decrease margin million for XX% as was increased $X.X Treatment gross prior that $XXX,XXX, gross Service in similar PPP for also compared I or compared the offset -- profit, the was quarter of revenue. labor our year possible the Segment. maintaining a made in the to Service Segment million, Gross to was impacted the revenue mentioned profit revenue by the by was $X.X by as of Turning about gross Treatment $XXX,XXX the The mix as lower well profit

margins labor year-over-year Excluding these quarter additional for would comparable. the have second costs, been

or ended XX% For gross the compared profit at million XX, X $X.X months in million year. June or to prior XX.X% $X is our

quarter, admin the lower prior by subcontract and with corporate bad the is expense, saw travel for sales and were our $X.X We lower in and at and line Looking the costs in we higher was that in G&A departments. at offset debt expenses million, lower which salaries groups, year. admin

For prior year XX, SG&A year's are the XX.X% X ended with million is June which revenue. current or expenses consistent was our revenue, of of XX% at $X.X months $X.X which million

from the of a to net year's income And is at operations, continuing taxes common of shareholders prior is in loss net from income net the $XXX,XXX compared net compared in $XXX,XXX $XXX,XXX. had $X.X We of year-to-date last shareholders compared income $XXX,XXX. prior million the $X.X income $XXX,XXX. to $XXX,XXX to attributable attributable operations taxes, income common for year million compared in year to at loss a net of continuing to Our of prior sits year. Year-to-date, to of the quarter

per consistent year-to-date to prior year. per share per quarter -- income of a income net for loss year. is which compared at share XX% for with for the prior the $X.XX while $X.XX Our Net is as and sits share

Our compared our $X to adjusted adjusted in year. $X.X million operations EBITDA prior in year. quarter, this year-to-date defined On the as continuing year-to-date the million EBITDA was is a morning's release to $X.X for in basis, million press compared $XXX,XXX the prior from

up the XX, $X.X up end a end quarter year at entirely few of to at $XXX,XXX received 'XX, the -- sorry, is items increase compared $XXX,XXX the December I'm at year in the balance -- cash at year-end. to PPP is of from to which balance Turning the end was due This as second million, sheet loan we our -- April.

Our receivable end up receivables at unbilled about increased of quarter. the and accounts are cumulatively $XXX,XXX, reflecting the revenue

liabilities $XXX,XXX, Our reflecting approximately payments. current up timing of were

million from and the Our was down year-end backlog down the approximately second million quarter is at the of the $X.X end $X.X end voice million, 'XX. at of at which quarter of $X.X from of

of end the at June was million. backlog approximately $XX services Our

of excluding debt of costs up $X.X and PPP the lender, quarter debt, million discount PNC Bank. primary the owed end the total our of in due the our the million PNC owed this April, cash Our activity loan $XXX,XXX. finance debt at and XXXX. quickly to provided first X loan discontinued our shareholder on private operations shareholder was Cash to made bank in other million, issuance for was $XXX,XXX summarize our was -- I'll by $X.X leases. $X.X for private $X.X now used received million for flow and million, cash months is to operations continuing $X

that, monthly on revolver to lease loan payments call $XXX,XXX, to $XXX,XXX. net term the of is and of the payments Our the payments other operations was payments million, With cash over financing loan our $X.X of $X.X of to questions. used receipt by the of by provided investing $XXX,XXX $XXX,XXX, the now of operator, turn loan of Cash by was shareholder million. the $X offset in PPP operations provided discontinued I'll cash of the financing million, continuing investing representing $XX,XXX,

Operator

first line from Howard of Shields. the [Operator Wellington Brous question comes with Instructions] The

Howard Brous

Mark, just as new with back in some come to contracts to remediation the for a anything a sub mines. we and EPA the about you as I past. talked the want the contract prime The of that? about Jacobs naval Have heard of

Mark Duff

on something see it that you did an the talked end -- a making they this year, as know, good said but before in Howard, actually we Well, recently press went of far, I've for announcement the quarter. planned

we've commitment that made and week was a like that to make anything, first at award. So ago a that heard they

heard So this at we've point. that's all

Howard Brous

RFPs for put contracts? other they Have additional out any

Mark Duff

some nothing. fair whole we it's The a fan X or it had right but of they went But No, hype then now, Howard. of lot expect seen XX components like up. for years. different and for program we've scope, quiet back kicking And and do haven't, like looks months

Howard Brous

to Glad hear it.

the Navy Or you expanded? that contract few on has working been sites? a Secondly, just are still

Mark Duff

subcontractor at soil-sorter. contracts. we're Diego Navy in One, but have is the one several with we a Well, San both,

contracts have Bay Francisco in the also that are other We getting Area San rolling.

pretty rolling well. all they're So

will And contract good, well. that going to seem so significant at be be they're this and seen point, to very still there they're mods, all whether but be pretty doing growing remains

Howard Brous

Jacobs closure do Am other tank on All was to want the correct bidder Technologies. issue. contract I that? lost And to right. the AECOM. address I BWX one

Mark Duff

AECOME who -- The the other bidder was AECOM prime, Atkins was was on our team. was

Howard Brous

Right.

it goes Okay. DOE DOE know do a appropriate, any of can other issues comments all letter, The Office the I'm July our terms But were that? appeals you status and in determination. about, And that investigation make letter. I on." will one, quoting award if Can about canceled. new what -- of is Counsel you a wrote the "Following addressing comment XX, General have and as you from

Mark Duff

No. all completed. It's they did information in say once actually, the said that have, the indication they anything. no at were the too, offers, another With this DOE of meeting. Informally, point. Howard, notify schedules actions corrective all or we would proposal

of been far, of our those actions. corrective team so has not any And notified

hear the new we're So waiting all and by. award we're just what standing as you means anxiously to stated, determination just phrase,

have yes, what's So no we letter. information in other besides that public

Howard Brous

Fair right. All enough.

DOE, got my That's large can on that $XX contracts Atkins if me comment done. of continue, your $XX usually they to, historically, just Is billion the to an on additional a let further from this not So they would year not this. last that knowledge? the we From fair billion give say, based comment understanding year. and

Mark Duff

traditionally fair don't is comment, done. I Howard, not it a is it know if

AECOM awarded member. with Atkins However, minority minority was as was Atkins by keep in mind that led a AECOM was the And and this plateau member. the a

point. award point. other at objective of hate will they I to really behalf would this to at best on speculate I any think DOE this the that So And on sincerely proposal

Howard Brous

had best It proposal. the also thought you

Mark Duff

we seen other that Unfortunately, haven't think to too. proposals. any like We'd

So we'd be speculating.

Operator

next the comes Our Instructions] Levenson Steve line Big [Operator Research. with question of from Rock

Stephen Levenson

on that work Is performed? Just this quarters something has delayed. product a able the to ultimately being revenue recognize? was there going -- been question that the it few take all a Or to is will all Has out?

Ben Naccarato

guess, we Steve, receipt and X the disposal. recognize way upon in Well, is revenue, then Ben. processing this I is of upon upon a revenue phase

constantly second saw kind is backlog, significant receipt saw pretty and quarter And recognized. that was bit a the we a the But we did so a in backlog. in of number, a We a drop of operate way our of that the portion. what was smaller have why that's a bit backlog replenishing you drop in we're

as work the recognize actually done. that we So revenue is work

if processing see a receipts pickup so And the ideally, and then those in additional that up have the receipt in we we'll will catch third the year. quarter, portion

Stephen Levenson

before, at Okay, got opportunity is it on show Then want another Does And sounds you it I and successful. I plan think, ask it? And to a Are it. asked treatment, that? could at sell you thinking you but is the something this to once again, about as operate continue if there out people something are if one. turnkey your looking equipment that or give other an it's I'll you like own They device? soil to off all?

Mark Duff

application. well. identify second able it No, we've a it's for, Yes, as second building we're client confident very to now, And that Steve. opportunities other right some we're that been

something ourselves foresee or to moving. the proprietary. really It the see we of things them so. we see next the system point take this bit these the working. see like some operating rate in to of The and software the out XX the expertise active is X, keep At skill months engineering that gate quite whole the kind of get that's we is in keep maybe to or And being turn of thing the of us Until software a them source to trick a on with runs time, things X don't backup with over X anyone. that have. we So conveyor. and this and leasing able We or these we them does

it would So lease run and just that we I really ourselves. doubt it would out not

Stephen Levenson

something than of or them guess, XX next I where months over some X I dozens think better you X point? there's... X now. at you guess, see out X is is to Do this the there

Mark Duff

we been through always to sort Steve, we everything there's And overall. to broaden this going a No, term. can doing non-radiological it certain it will It limit so contaminants. sort expand applications. much can if there's industry new We've source a only that, sorts that, some on even break then actually, doesn't And on R&D, in so further.

Stephen Levenson

you [Indiscernible] least, stream over see Okay. last revenue But at the the continued the of very product. a

Mark Duff

Absolutely.

Operator

Landis. next from question comes Howard the of Our line

Unidentified Analyst

Mark, like everything? a -- what range, a over $XXX or And that rate you business you're than in give million take a little do better it do trying this bit. EBITDA the you after of just looks to XX% is time? run get sense think can Or

Mark Duff

rapidly. on Howard, side it and our receipt more of the extent We process expanding that what we segment can waste We're take or DOE commercial really can the the catch DoD treatment on can. depends as up. believe To and well. if lot it waste waste expanding a adding in

to So answer XX% we be of our probably Services question, segment, XX% don't we That now get certainly do high -- is margin your the can We're And goal. on be little -- our percentage to total that But that's waste get tough such going same to we right treatment XX%. the to is increase of the a make And yes, Services. because closer to as is going we'll short a to it. revenue. goal.

Unidentified Analyst

side, to the be time the margins? of on Services there's exceed And Okay. percentage those and where price not risk revenues some would fixed what or either materials to

Mark Duff

T&M. soil probably removed around our rate Service say, let's have we're example, Segment think -- we probably on of cubic overall, the XX% to for like, revenue, yard But disposed few a fixed now, just and Services, off. we're paid Right where unit the contracts for total I for XX% we're it's a of, of in getting Yes. XX% a

projects All and of our California all of smaller T&M. projects, our all project our are Seattle

small usual. the than have be revenue million is $X total this fixed some at for say jobs in that, cleanup Do as Canada, would fixed our or for risk our Ben? component agree in unit most million We and price the of few the would core do price. you work the less fixed rate demolition I a range a with total range. year to $X So

Ben Naccarato

Yes.

yes. this For year,

Unidentified Analyst

T&M which much point T&M? to way gets where at just fixed that exceed, of your the initiative -- a some hard most in differentiate Is is not to an Is it from there is of T&M, mostly price.

Mark Duff

have dates T&M, many a We Just -- yes. because lot of don't so hard the remediation business, surprises. there's

you're You find things you're doing that chugging along demolition. or

typically with change notices. So those dates slip

And those. so work you clients with through your

So not to a we our projects. exceeding don't have of lot hammers on

Operator

Our of comes next Stephen line question from Stein. the

Unidentified Analyst

Congratulations.

see as you got says, Service with think has it backlog Ben $XX got Service a $XX And you as almost that -- million million issues. I you was in you But more fantastic say but Treatment, right? what's backlog, coming million did year. $XX Understanding, backlog you Service. when the a you're did $XX different comment world understand to means to Ben year I million shocked of Treatment? the you a presuming even is, quite flows What's were backlog But that when last did in $XXX talking when this a that's in impressive. is there have I is well. that guys challenging million

Ben Naccarato

down slowdown Yes. receipts. million, the Steve, that's a little we bit all number reflective a million that $X.X yes. it's is in quarterly of the And the and that's and we -- about time, monitor

Unidentified Analyst

government, environment -- I it's in The But because -- presume you're I right. that the that $X presume used? Fair. a of how million from All much you've got COVID. of you're has been rare

Ben Naccarato

used. It's all

Unidentified Analyst

Okay. All right.

that you that is, the question the my how -- impact $X would how impact would million, if financials? have So didn't have

Ben Naccarato

the didn't of decisions and mentioned the we from sales reflective the $X Treatment lot talked lot side. But have labor. decisions conservative. the That's just of slowdown we lot -- maintain. of had million, of that's harder really decisions. we $XXX,XXX, had of the have a a cost a about And corporate had would in make standpoint number If we significant of a with would also have in to I to

$X.X And so between quarter. the impact million on easily and $X million

Unidentified Analyst

have you you had pay All $XXX And that right. one other thing it hopefully, in going medical. it. there the saw was But won't to through, deserve back. million I it, The financials you for

that So for? what's

Ben Naccarato

Not million $XXX

Unidentified Analyst

I mean. $XXX,XXX,

Ben Naccarato

still maintaining. right internal Yes. now, the is of that's And somewhat A Yes. of To shop mothball just that our here. It's are but for company. lot is folks costs some the of a by in active. mode efforts in Medical public there cost Segment a of maintain

So a cash us standpoint, a it's It's pretty month. probably minimal. $X,XXX about from costing

Unidentified Analyst

Good. right. right. All All Okay.

one reasons way, the employee an had put from of out the this chance who I the think, won't hope, throw for is he of company new One And that the do the first this question, the out where Hanford, Howard, was at ask Howard created award I air when of questions. worked the question, but that talked they're chance, throw the it about reevaluating to let's it, express they read how -- that, fresh DOE, new new contract. the I've and and the because supposedly some appeals just I I'll

permit that is me, my to that things it what that that guys When for a -- this you you machines. you makes more even sort feeling And about fabulous, So me, happens. is diversified if talk more positive company. talk happens, But and you're about are happens. that, doing building

are you that were generated revenue. in had that, year what let's machines estimating say, a So X I that,

Mark Duff

they're cycle higher long, an long is And your estimate If on that running in these than good million will wouldn't but they things a run just be that, depending that will million each, for. to is probably it again, it's this Steve, they're at be. typically, field a the $X $X estimate. how year all revenue year in

unit point. a this is So at revenue assume we this at pretty per that I think good $X could point guess million

put thing is you've quickly very important other the to lot opposed a to that landfill. shipping is Steve, that offsite problem, is going because waste can this very it expensive a words, common on landfill. think solution is to that's minimizes In it characterized these real I back things, you the soil it as a a and of very to

and So to -- exciting remediation solution million with us problems we even projects. bid than -- it's a that of our in year on And preferred for position a a and some make it's larger projects this us aggressively. put is $X on very teaming us more partners allow would us -- to that solving

be services revenue that from $X with just those, but there along go not will well. So a as million that

Unidentified Analyst

well, cost? -- the what's things for And these how example, one of much thye

Mark Duff

at that get this less. we $X million. proprietary into a point, lot but Well, like can't lot A it's

Unidentified Analyst

Right.

So payback thing. in words, on this other you're

and Your quick investment the as this well, payback is so suggest. forth, on quite

Okay. Where the is right. about What All that? TBI?

Mark Duff

until XXXX. by and TBI of information, Hanford in still working contract. for still the kind farm, still at of at they're in X,XXX aside down notice, this the issues. project the supported extraction $XX is we're with end is tank to continuing gallons TCC anticipating runs million It by was for in It's the scope in they'll be project a to further now of this of receiving And this TBI all TCC the the the little The still incumbent slowed bit continues WRPS contractor who with DOE headquarters. year. the DOE that point waste more with set get right

on again, could the and lot the it guidance folks we've of twists So now that's Steve, gotten project. right from but the take a turns,

Unidentified Analyst

a your the million. expanding backlog service of painting you're service, of have basically, So you picture $XX that

now, as relationship X Jacobs see was You to new bid you able be have then another Are Jacobs, one and of on question. -- When things you'll this or on -- you that that? do are with one already? the bidding bidders bidding you where with

Mark Duff

relationship the between orders now with of number they that DOE out them. task of anticipated We're have recently that do that announced We the calendar anticipating, come year. a and end

waiting We So we're anxiously of yet. all they're to type for going those state some task of forecast schedule a don't that or at have publish to orders.

contract, them. from we procurement one looks being a what know we'll So to all through DOE there's Jacobs number of each of that like. ready don't But headquarters to that pursue that indications go orders work with and task is

Unidentified Analyst

the business GeoMelt $XXX things, could past million. Then is be you have said Where that? in

Mark Duff

That year did Veolia. for the X.X is we with the years from study treatability the modification final permit over -- X, we're that or last waiting

rate that or a that run So melted received and you you we study significant to we're waiting now. mod, we'll a sodium, once We once for this very of million process you a there $XXX after end we in sodium the we year. rapidly to that, mentioned, that submit come that receive treatability seeing full we once of and up from burn before permit that be that sometime INL we resubmit state Idaho, receive then from able the that do mod. amount production back at you And that -- anticipate

Steve. kind we're space now, of permitting So right in we're --

Unidentified Analyst

Okay. All right.

Hanford. at look I when So

So have is. running, please whatever mean with I -- -- you me, Hanford correct existing an there's

from there business from Hanford You Under a have somebody. correct? as subcontractor Is conditions? normal that

Mark Duff

take the those get current We amount from basis a are, plateau at on of contract irrespective likely tank some part it's anticipate smaller We trajectory waste hit full transition from to change. Hanford. take be month on But to Yes. the our a overall there in or a continue significant of maybe is swing. sustained facility the all receipts We'll -- they operations. all that for to amount once the in shipping of that cleanup waste X a of a strategy

who's contract. change, So we running the don't irrespective expect of that to

Unidentified Analyst

Right.

there going vitrification of of other from could reading TBI you you completed if if that it's in closure way technical and to tank we the with be person could chance a the is could icing at running decades enhancing And it's you plant in be is and theory, And I'm trying I read, running. words, you could another I'm could you take potential maybe could and even saving still finished, doesn't But happen, you do -- what have to when that, and is the, be be Hanford, on the the a plant that. vitrification have money, and with you the the doing TBI the vitrification hope so as still the it's be business -- the -- plant cake contract. ever have the be -- --

initiative and TBI faster. get would really therefore, things So done money save

is I'm shape say. what great to in trying you're So

Mark Duff

the think so, to we mission. to Steve, as a waste treatment agree. would treatment We supplemental have the refer to plant We TBI

to yes yes, So all your statements.

Unidentified Analyst

All right.

used. challenging last that and out scenarios cope My to -- that to presuming is, is, my you've I'm different that happening that and I been extra so in relative question mapped very question so world has things you're Would that So forth. DOE our going so read you somewhere hasn't money.

would then could money budgeting? fiscal opportunities? is budgeting? new pushed going And towards year? Or just affect that to So And push the also being that supplement into is that greater that

Mark Duff

opportunity, it's in where sites, difficult mine because the understand or nature all them spending to talking I'm overall or the just X to great Steve, think I with friends over of months. at them. are their several unusual they different of It's do of that. a last of not X

they're they're are get figure the trying they spending trying out to what I in to before So where in fiscal done think and year.

to -- surge to anticipating Steve, the is question, end off-site. of base your to yes, shipments September get we're in So a there support opportunities, waste trying at anticipating

fiscal spending As to it's spending of dollars accelerate off-site. into to that the shipping our quarter, government to expect usually Q by fourth QX over And carry year. waste opposed do labor, on extra we -- easier

Unidentified Analyst

diversified -- just a mean, effort this have this calmly. in having just you this I'm have wife of dead, -- again, amazing been living and -- I good truly -- that saying and and know she's had it. -- who and these there, And we're that -- and you're you've midst very opportunities I'm I quarter. out I I gotten you've is living are a which And the dreams gets so have then yourself you and creative. -- beyond -- just guys the what I'm I through. to Yes. then this she that. you applaud you going I be And all

congratulations. So

Mark Duff

to And right now, XXX people as that's basically away months thanks, a home for I We the appreciate last XXX Well, just people the or over line that. so during in field pandemic. want that support. the appreciate we note company along your several Steve. we've got almost

in off apartments, team, have hotels operations, live a where the in this shut made great been during hats which such while quarter. down. support are and enormous a our willing working and but things Who that a lot time and there's sites and out support has extra live staff. stepped to to travel predicted field there everybody I risk they're within of to happen up have field making wouldn't we'd the have So and

been our it's stepped that's up. team So

support. your for thanks but -- So

Unidentified Analyst

since And manufacturer, area, But I to for key down thing. talk looking come I'll comment, point is chance final virus. work, in get make the was launch I to got didn't ventilation. a one the new my really the to And that after the relative and chemical I've -- last a very this I've interested the

they're very air So read please to poorly on in tell transmitted hotels system. because your be people one conditioning in that these to careful when this be the that conditioning air many articles system a I've can check

So aside other Congratulations. things. so important ventilation some is

Operator

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

Tristan Barr

sudden, that extraordinary. I Services commenting just but that pandemic guys to typically sounding on like backlog you come a run as reality seemed certainly bit like say shown have to mean, And like on it's the rate, cheerleader, I just this the a number million say And have of $XXX is you in to congratulations all calls which but necessarily I risk turn looks that. the pass. business reach is of is that a now of nothing Kind incredibly within of avoid impressive. wanted know, yet, funny, not I short that at to going of a a

Mark Duff

Well, thanks, Tristan.

Services, and Executive not to marvel And at have don't is fortunate -- how good are backlog such day goes our responsible Vice a during for that he largely a large a I Andrew time. for Lombardo, As difficult that. President we there's such by where

So appreciate fortunate as Tristan, we because we're that really we like well. thank of support. But you, feel your

Tristan Barr

at going the So hear business. an the kind And Segment, be switch incredible lately I is times course, mean, to to to for in question, really during have the going Segment. certainly given side, Services to opportunities and seems of is, which Treatment ask higher-margin the Treatment expand that's now encouraged obviously, expected, which I But and now return COVID an different amount of done call, I is, have your your it I I'm impact several understand. what you to on you think that have extraordinary this was of

then in turn quickly like that pretty able that then and of goes with you the mean the have I in that your it's you'd to be one be that bit -- tease What now And like you once I stage like obviously get look does look And you're how on to hear kind it longer those into standpoint? you so you I'd kind does of pretty a you'll much out think in in spot. quickly. flow do permitting to a through mind? permitting mentioned production, encouraging mean, Veolia. And little what TBI, P&L?

Mark Duff

Richard at effort. relationship tells the years. Grondin Yes. Waste facility for have latest the He's Hanford is that around of He go. first now, state basis to Idaho, Vice General our Treatment. begin that and through with our or actually good begin leading ready President we're weekly to waste me -- a for with Right That we that they almost the permitting the many Executive in should our in GML, do see that run Manager, we get the phase. once the -- operations has is burn runs year sitting

a working we're with revenue Veolia. And a that. like agreement, million we able to very could be I'd between on at them, and along good really a So million should partners be think in that excited about and have with operating our And relationship $XX that great we to doable. year. $XX get

not Hanford. other in not sodium waste INL now we well, sure as rolling but I'm Oak the be up extent if from getting all. are I in to We to facility Ridge here answered expect

real now well it. in commercial large and That's do. to volume take is and effort norm in spent we've the pipeline The amounts now, traction sector, those utility have a about lot a gas Tristan, a year along commercial haven't of significant that done segment on, starting on getting of component, traditionally something our in to which had to we with wins the focusing get and a spent And building time just or we're on foot relationships, oil that. market, the market, some that getting and X increase power year sludges other as some we

we're increase so with well to shipments And along see as along that. that waste sustained going with the DOE

Tristan Barr

take? of Veolia's million on the So GML, that inclusive revenue Or is Perma-Fix's $XX to is $XX alone? million that the

Mark Duff

this between at be would total That Tristan, this. I believe, point, revenue, the

Tristan Barr

research How longer, kind And I Okay. my then business, less of and big more more stable dependent also XXXX? a get, is this stream for and think mean, but takes steady that little revenue budget correct, do if increased a on vicissitudes. that is commercial usually obviously, you can say,

Mark Duff

like it and depends Probably demolition -- that's contamination -- and event or XX% years. a a you're that. start getting And a hopefully, try waste maybe a to that's the or drum out next and getting I all is a project here if tough here could there with you're to it there. you up our to Well, railcar goal a waste coming from X railcar or in something drum tough operational or get question. XX% because It's to really

segment total. So but waste think Tristan, good And this again, gauge. XX% I is our to a -- would speculation, of is XX%

for would that a million $X year be $X million 'XX. goal a would So be good to

Tristan Barr

in I'm careful guys COVID. you and again, have think pros pre advance going And And been waste I to wrench COVID because were conservative. be to pretty that I apologize shipments uncertain understand are

indicate the mouth, you your up, a of isn't so QX, expect into so words you I think what this you that towards COVID. would want but could And should like But something have impressive like year-end which -- far to don't you sounds QX to exponentially be, waste end kind the which be but to so you have that seem on put that COVID, it you so Services be rather of it amount it material, I but to in of flow towards end coming treatment fair quite would -- acknowledge the which be exciting. shipped after backlog or is backlog is, quite there again, would budget more QX, during touched this

Mark Duff

would we with agree Yes, that.

I as that in accelerated said more. a disappointed script, are, QX little We hasn't the

on. whole all our I at of seems very a is most And be moving sites the friends think -- DOE this dragging how to we're surprised at cautiously. country the little are

go. we are had said, haven't out we'd receipts to that as starts to backlog They for look we has there's so little there that know increasing, And the once we hoped but that in July. a better,

hoping we're for that QX and great a September see that So us. we start of seeing end early August, then

Tristan Barr

a of in Again, the done. heck job well Service a congratulations, that's and on turn the congratulations sector. And

Operator

from comes next the Research. Our Big of Steve Rock question with line Levenson

Stephen Levenson

Just in the treatment have wanted water forward year? the an to, of update a for with Florida. that? follow-up on Did for looking the outlook impact COVID Just rest What's an there?

Mark Duff

has there those a Steve, some of significant held couple bids X quarters. and exciting yet. seen of of amount that But today. the water We're down a haven't have not we processing had last water for of out COVID, awarded we have up been because we

it in in -- we So on coming big quantities. just But some bidding is dramatic we're quantities. not

call we running this a it's you tell quarter, we have when hoping can we're rate. -- that in that we're another So at sustained pretty

Operator

next Our Godfrey comes with Consulting of Group. question line James the from Godfrey

James Godfrey

took exciting. wondering XX back. you there's I to great a were while helm I Mark, And little a if the the you more quarter. there how mentioned a now months, recall fantastic think, turnaround if XXX can not Congratulations here equally, when employees. XX many over I they back, was look on you important, last just it's

Mark Duff

our meeting, in to so COVID it to before range, James, in that I the that you've say to hit. up quarter range was before like the the track XXX XXX altogether. gotten for want we every Board XXX And

It's been good. have really Services So new to yes, really it's projects helped been that. these And good.

James Godfrey

specialized the highly that number. very and seeing that's really been extreme And Great. is workforce trees, the through a of value. course, of talented, I've important forest

shareholders. I comments job nice made. for I'm that value that. a enough you building you for couple done of can't again, you've thank So And of all looking here

color say, a what to might And base? kind XX them, the client you bring that a theoretically mix of that's able that's of clients new new give you as clients as One were far of little more concerned, table. future that those Can kind on significant. to opportunities, potential of

Mark Duff

your on glad of XX you that's or during James, you your that. picked period I out of And get nugget new COVID clients through when kind I'm Well, ripped a can't office get that, house. real during up because to that

And So confidential looking the list, about really we're through to have the definitely most for all part. I excited you, they're tell that.

mining arm and But out again, -- have metal for manages doing Has Andrew names. I new the and of or on Brighton, company, or our are which, small So power. real some give of the to industry things some its gas Pennsylvania physics word industries office. see the oil ones power, at health most of mouth. areas There's growth, can't of marketing characterizing that And and as as characterization and well everything of Lombardo industry, ones done them very components potential the what we're starting well you scrap is commercial. most well as as utility a from

and from built marketing payoff being those relationships some new initiatives. Some real

pandemic, So think component. we well you can do a really could we during back is grow much we're it that normal. when exciting If to

James Godfrey

really as because did surprise that hear I be and accomplishment get and meaningful very thrilled go more you a Tim, there congratulations to again do Well, it can't me.

of As we're and all as they in now TBI standing pretty just other back the start shipping far it, points place. there. Hanford, couple to roll permitting a ready as Is ready can much as on soon

we receiving as up start we product, once treatment so soon where possible stand? can And just as just that crank does

Mark Duff

we're but the we're ready mean, on And Yes. go. volumes, have and on permitted limitations receive ability to permit. I to there's we now, that waste our current right

the X,XXX have and much we ready limitations that. are gallons that, So than for that that comes, when we're higher

to pumping So of good it tank. start out the go they we're when

James Godfrey

waste still a picture exciting. just is of, XX million waste. kind XX That's that solution million, I that everything from treat XX And understand. the right there low-level plant and to pretty other Hanford that really Great. And documented gallons, at designed again, was the of now. we're much never well all which is same, big the of only the It's million vitrification roughly

get So to where now? once pretty And So we of certainly, question they fair that much Hanford going quickly and ramp some get that. the start to is a how that? assessment stands of is how right we're processing,

Mark Duff

like well. would our that's James. I Yes. to it with hard will to happen certainly at think DOE Hanford, what as speculate That's but It's of view position. our that,

James Godfrey

XX it's years right Right. overdue And XX until vitrification plant, to that be And already, on also well the documented. schedule. it Is fully they are XXXX. of now course, what, operational or

the knows and it to be the more solutions real they alternative the are going number have seek the necessity superior. is. the saving we waits, There And to in who conclusion leaking So out cost more is my is tanks, longer what solutions. it far

million is a as is So And then far into self and to in maybe beautifully. a situation? I ago, other fabulous and just that? how just on of got shape talk back is bonding Ben year and balance us as I going know think time, much to available sheet hand Hanford question that where to kind we wants work still over there looking today stands $X just the our grab concerned, is we one forward, of that Can

Ben Naccarato

Yes.

the much just are you to On balance sheet... clarify, the now? asking right Steve, of we Just, have how self-funding

James Godfrey

the We has how quite at cash, in sheet. it's just liquidity restricted the bonding that understand cash, an go And real apparent out to that looking theoretically and right? could isn't could access Yes, purchase we much access and company effect, balance that. when

Ben Naccarato

million. about $XX Yes, it's And $XX.X $XX Correct. million million. or

James Godfrey

Great. bet. $XX.X million you

sheet taking with exceeded we've a when hour really there's And of I'll be is see, let balance I'm thrilled into more fine go quarter. over and consideration, you bet. you sure So Well, the market. cash in progress there. lot And couldn't the that shape the just

years, and year, and last me. Over looks bright you And thank transition very future enough. the all again, been can't the complement wonderful X.X to a you it's

Operator

Our of comes the line Steven next from question Stein.

Unidentified Analyst

you to you bring has and -- has wrote forth. middle the in that about last things things. that? What stuff, got up of in words, quick with assemble In plant which country year. big other the we so I happened X set What

Or You in year. business have now? had stuff Do on the what? you there out that earlier

Mark Duff

the here Yes. Yes, Operation or located Steve, called in the that's Waste Oak Center Environmental EWAC Ridge.

right out hear say X to We we're procurements have, on. waiting to I want now

January So it's that some of of In some go we good a one We're very has that, bids. kind hear that's February, kind did stopped. then But frame. for a and this on we'll of getting QX hit And us at win limited facility ahead. on material We in in job point. everything time have it's limited, these waiting next anticipation of And job, quarter, revenue decontamination revenue very doing equipment. to limited COVID waste things going. been for hopefully, lot sustainable the other very small a but of did -- receiving by and spending

Unidentified Analyst

right. more All quick question. One

lead in you to service So that is That business. as say service to of could with the it reasonable service. explode understanding Treatment

up service, business. that have words, in that customers other in could So and end Treatment you you bringing

Mark Duff

trying -- That's trying that the of we're model big each these the bids That's of large right. participate in. That's participating kind to cell. Steve. we're DOE Absolutely. implement, to On and these

Unidentified Analyst

But even in applicable? the non DOE, that could be

Mark Duff

strategy as very That integrate exactly. together making that's both since sectors well. of Yes, too been is changes to the our of the we Yes. sort beginning And that more. the

Operator

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

Mark Duff

everyone Thank thank like you. second quarter right. to conference in for call. All participating I'd our

by more heading we As outlook I remain are our navigated third bidding challenging the we our have on much were positioned highly a to for business. and pipeline, quarter. well -- sales Based activity backlog, successfully been mentioned accelerating the we could environment current we due and into what encouraged COVID-XX, earlier,

you, So again, for participating. thank everyone,

Operator

This concludes today's conference.

your this Thank your You Have at disconnect day. a great you may participation. time. for lines

Perma-Fix Environmental Services (PESI) 11 Aug 202020 Q2 Earnings call transcript