PESI - Earnings call transcript Q3 2020 | Perma-Fix Environmental Services, Inc.

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Operator

Good day ladies and gentlemen and welcome to Perma-Fix Environmental Third Quarter 2020 Business Update Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, David Waldman, Investor Relations. Sir, the floor is yours.

David Waldman

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

with morning containing posted President website. us President call press is Financial the On this 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; Duff, Mark 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

We morning. and profitability needs the quarter to our as dedication working from XXXX All safety of right. our our home. employees the stay which clients focused the to while of third continuing achieved as well in meet managers plan and of they were Thanks good reflects on implementation COVID-XX David of largely

QX six As a XX% net million result receipts in shutdowns approximately million. and significant achieved waste in of generator $X.X revenue despite of months. approximately increased adjusted XXXX over EBITDA associated we of was with the past income accomplished reductions over This $X

to waste of our As sustainable enter particularly QX in segment in continuing realize services revenue with month we're we receipts increasing December. the

the surges throughout headwinds the recent in are announcements to in activities and become due and to generation requiring in more COVID procurement the presenting slowdown additional cautious waste of However, us XXXX industry.

robust commercial and segment with pipeline months and actions sales remains create on wave award million several for have which awards. had direct, of impact past are Our activities the services action in bidding and treatment with and $XX for both bid beginning values significant and annual over services Backlog for decisions. awaiting proposal the ongoing over full has to a associated operation the had full a for procurement government restarted as have clients uncertainty latest XXXX which some restarted direct COVID operations not

achieved million. Overall remain revenue XX adjusted compared While within Treatment which XX% the ensure relative same the to awards financial to a conservative from period approximately Services million for these I'll of third We million. share we was for lastly X.X XX pursuing further take discuss million to last to I'll the COVID-XX our same increased are attributable in increased the income quarter XXXX segment generated later X.X million to and quarter $X.XX year highlights quarter few to to pandemic common moment year. a announced segment the to of subside. in stability spending revenues and for we're XX impacts per or a or same shareholders moment. are there in address results the Ben detail. X to share net year will million a revenue financial million discuss to EBITDA the more revenue compared XX% last due same XXXX larger $X until investments million several last now sustainable to support period until for and $X.XX to bids the begins in period will X.X compared perfect third

resurgence. forward with we're mentioned COVID-XX As caution on based moving I

about of developing the offering throughout with accomplished permit beginning our the with and our operation sector and However, clients and broadening which through health all soil commercial in of business to for the increase broader modifications pleased a staff we and internal Diego. our and safety foundation of value solar to as initiatives XXXX Perma-Fix new to technology management very but marketing in has safety of I'm of identifying opportunities while deployment coming and better nuclear functions new approaches succeeded continued implementation share highest further sales quarters. ensure for sustaining comprehensive our that COVID-XX into business expansion a was ongoing the have includes and project and energetic and committee progressed In drove resources which organization say the market expand remain and established to only has our remained our for navy such We've infrastructure requirements base our not services. our our enthusiastic optimistic, This our increase strategy in growth and customer parallel rigid servicing. the added priority. QX new to U.S. in plants to expansion treatment San our we've our

primary Tennessee, resulted California; our real of of slower that's see in our complete we our and and we're a in in states which increases get subsequent to including with ability the in generation have While from COVID receipts to Florida, impacts a about revenue in the beginning through all waste continue optimistic XXXX clients remain generation. increase operations pandemic to from Washington

action sluggishness XX% is particularly to efficient getting but the by waste we're back operations backlog This in less waste drop far treatment which have operations of maintain a seen to in new clients. due nearly from So XXXX. able in applicable to inventory receipts our been have getting waste so

operations waste government facilities to are towards have operating activities. the While which mobilized full-scale their facilities back to critical been date limited generation have

has remain with commitments. and performance of anticipated Our to has strong cost and ratings QX. generation growth, satisfaction strong been client which of segment Project to and the and projects has through project sustained expectations value as nuclear safely as through services enhanced hiring XXXX schedule exceeded earned most operations is QX through continued completed be have seen each within

also to for continue We over upcoming position anticipated months. be procurements published to the next will Perma-Fix few

past optimistic supported is follows. department I While our I've in see Perma-Fix headwinds the objectives and beginning client, growth as This and the primary our energy about few of spoken quarters. are quarters A highlights to direction the next of are remains regarding than optimism have these few plans six more future we over by the management and in today caution four to policy. waste

increase which of the winter. nearly provisions of could year department XXXX appropriations over increase proposed. energy would likely government First an This billion be into budget that any $X recent passed would the exceed by XXXX officials be XX% congressional bill if stimulus suggested funds would and this statements irrespective eventually carryover have for is budgets represent

continued provided contracting Second, state as several large which through the larger models and [DV] well end regarding contract and sites applications the requirements Perma-Fix leverage that at participate innovations hand and problems procurements companies the our recently decisions contracts cleanup management waste site to include our large-scale as capabilities facility much published on for some larger to technology with and opportunities quote of for teaming This continue at solutions develop to have values Hanford advanced opportunity bigger has been mature. in with for solve northwest success. progress comprehensive the lastly, support to

another the that clients we've to in our management underscores our the this over of innovation generation are Ben? quarters quarter and momentum time with last while with professionals foundation in as few and to provide meet details dedicated company strength now revenue strong pull the health changes. waste growth built unique pandemic. our Ben to discuss very I'll financial increasing clients, Completing the the we over industry up and Perma-Fix results. unprecedented continued As the provided call has ability of turn out and of positive staff QX team great to of market solutions and who has our stated this On and a vision XXXX for note opportunities teeing and to and that will needs our adjust

Ben Naccarato

Thank Mark. Yes. you

of that's a million was third quarter the of from total million compared This XX.X%. XX.X%. continuing prior increase by X.X or million segment XX in XX.X Our for revenue increase year of result XX.X to operations projects the revenue service was our million an increase the

continues from sites Our compared year, continued which waste slow impact primary revenue as compared shipments pandemic increase. treatment in to quarter west to was when coast our of receipt this increase the revenue COVID to year was on lower projects customer waste. to Offsetting driver our the this segment growth the with resume the from of prior prior

or That's revenue XX.X nine was compared year. prior ended For XX.X XX.X year. of September XX% XXth over million million prior to growth in months million increase an

for in sales costs in was fixed of and service transportation and up such revenue drop These made our costs quarter increase fixed of compared up disposal offset other costs revenue additional increase the our were million. X.X related in million regulatory our the in as XXX,XXX lower depreciation main were facility the a travel resulted mostly from XX.X costs of in reduction expenses. million increase driver cost partially the direct accounting Increase of XX.X variable year of while increased to of in Our by labor, prior was X of XXX,XXX. a increases increased cost an the as or sales million type maintenance to treatment segment as while in costs and an this subcontractors million X.X segment

treatment The well Gross by did revenue this profit the X.X. the X.X of million drop Increased segment profit improvement was side. primarily in gross XX.X% was for in quarter as we in on the increased by partially the compared quarter which impacted of segment approximately service offset gross see or our which drop treatment profitability positively X.X revenue revenue. segment Our the mix of to in marginal improved offset drop service treatment decrease projects X.X waste the as million of margin year impact. offset in profit was though was prior third revenue or a but million the XX.X% was the the

or million ended in at XX.X XX.X% XX.X months nine or For gross September year. compared is profit XX.X% our XXth the prior million to

Our G&A by and X.X costs bid bad and expenses for slightly debt. travel higher they the consulting type we compared incentives million saw X.X proposal were wages offset and quarter and were lower

ended nine million months, was million XXth of of XX.X% for current prior or were months Our September SG&A revenue nine our in year revenue. which X.X the compared to X.X XX.X% expenses

in from attributable of income taxes year-to-date common compared X.X common is continuing the quarter Our year. that's to to million of our the million income when We compared of million. to the million taxes compared year year. continuing million year's income Year-to-date X.X attributable was X to X.X the income million million is to shareholders prior X.X prior quarter operations income net for prior had income X.X net of last shareholders from of was compared to net X.X X.X net it in for operations

income is income $X.XX prior net years the share per down $X.XX Our XX was but prior per basic year-to-date share year. cents at for which is quarter net per $X.XX to compared basic from share the our in

compared continued in morning's million adjusted in compared adjusted X.X press EBITDA year-to-date is the prior year. defined million is million are to Our year X EBITDA as to prior million while from it we year-to-date in X.X operations release X.X this the

the from end. at that as quarter to balance the received million the of that our was This X.X in to that XX-XX-XX balance compares loan the cash PPP Turning sheet third XXX,XXX which end to was is April. due we year up our

the built Our receivables quarter unbilled much at service the of in revenue of end accounts this quarter. cumulatively the is million X.X receivable you up segment usually were and approximately reflecting immediately the and at and new increased unbilled

year which the The April the million of in loan XXXX. million the X.X X.X the our million X end in were expenses million from was at end liabilities payable accounts segment to million at is quarter related due in liabilities approximately PPP business. the X.X up at current our and primarily third end and reflecting of down long-term backlog we is XX.X increase waste of Our in received increased to service down quarter increase the of from

primary backlog at debt owed bank the and lender, leases PNC excluding and received costs and of was on X.X million total discount our XXth to was for X.X million services million PNC Our capital our at and approximately to the issuance million XX the approximately loans. September with end quarter debt shareholder in April owed loan for other loan private million our bank PPP X.X due XXX,XXX X.X debt

our flow I'll first Finally nine XXXX. summarize the cash for months activity of

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

and receipt is by the the monthly by XXX, loan activities was investing for XXX,XXX. this payments Cash our of cash by operations Our was of by million down discontinued million. of discontinued loan was XXX. on in Cash offset was operations XXX,XXX. million provided used PPP as used X.X broken X.X operations term Cash provided X.X continuing financing investing on our

to net payments revolver million XXX,XXX. call that other financing the the I'll turn shareholder of payments the to Our over to XXX,XXX payments With of questions. X.X and now lease loan of

Operator

Thank for [Operator open our questions. ahead now gentlemen Wellington Shields. the Please Howard first Brous floor with go take from is we'll question you. Ladies sir. and Instructions]

Howard Brous

hope I of Thank your families most in you. health you Gentlemen good in and finds importantly. this call good all health

Mark Duff

welcome. very You're

Howard Brous

contract very not you you there. a to welcome that decisions. potential opportunities questions couple and on a, on what opportunities? quote on but reference you from and Congratulations going Can considering my great I'm of Hanford by you what's to congratulations mentioned mean discuss perspective about had going in quarter A out

Mark Duff

Sure for just oriented. in things worst regards them people they're is in in be action happen could procurements just words a not Howard. to in we The situation the being don't unstable having because to waiting other

waste things to forward the team So down these transition move momentum going we contract with next be closure million to the forward actions as in to DOE's thirdly a now to a the TBI here of which they're and shut of is tank to refer the just a in months plateau impact to as on and waste what with receive two we facility phase in also which along on goes including northwest track we gallons with will a weeks means which to move shipments. hopefully right position a award that hopefully $XX start TBI encouraged then we X,XXX is That's the the seeing have project lot dramatic that for processing. several in our the regards remain continue next and and be to over decision the on that few tranche of with contract is

more So hoping we've QX more momentum the got all definitive continues stable, that we're that now. becomes together through right and

Howard Brous

of Let's, familiar. items if take a may, couple I that apart I'm

contract either TBI With do be you the a there's when expect that awarded? re-awarded hiatus to or or

Mark Duff

their receive a like side. the waste three understand we on hurdles did process address with just couple to regulatory is are ready we now Yes. We're it the forward ago. from and what Right gallons having years DOE's it. some They moving to

moving still forward progress and DOE is it's on side. making know the So I regulatory and

to they'll we're this start it summer. that So optimistic be actually able pumping out

Howard Brous

right. All

me the contract information with [indiscernible] any on question Let EPA about address the that? the more

Mark Duff

they if we to of this don't afraid Howard. quarter. asking some today last they said our guys I anticipated since and with heard see any information checked nothing I'm morning nope new and you have anything

home that's no of working government side So what whatsoever. on great those so stuck everyone of a what are things COVID a there's and the news believe we is the kinds example that's just from contract from

Howard Brous

were were to fact my in I calls as some and from though comment ask EPA. you of to like understand there bidders understanding a multiple Can that rejected those bidders about I'd the that question please?

Mark Duff

Yes.

shortlisted We we not that been have well procurement have been have and have who confirmed Howard as people in selected. participated that that were they told but the not that some they have informed

EPA that but had other not told what with been the we've bidders. verified have We from that's

Howard Brous

is and is prime is that your you're sub My Jacobs that correct? the understanding in

Mark Duff

now of says thing that – get Yes. We really teaming into right can't really the kind but it Howard procurement

Howard Brous

Okay.

right. Sorry. All

let address apart So please? opportunities. of me opportunity that you contract a can other couple [EWALK] The pull

Mark Duff

in volumes the really to oak support transloading Yes. mercury closure technology a contaminated waste. to a ridge phase that's largely is for place of of the [EWALK] the mission and provide next facility large

So that's largely waiting for more mercury in activity remediation for Oakridge.

then or have to So it's contract DOE awards contract if the front able teed closure order to value the those that up as the as then and to new [WALK] the facility [indiscernible] soon will award center a provide team [indiscernible]excuse incumbent task me be then and is which missions. be the they

right now remediation. speak we doing As mercury any not they're

large big on the that to there contracts We're have and not the things beginning there's some but but to the eyes using it we revenue volume for doing not are our now were other today. revenue we that for generate things [EWALK] sustain out. ones hoping smaller So are have at now come by we

Howard Brous

what [EWALK] is Did could now. you it magnitude I'm adjust as to of right potentially be what the opposed saying currently?

Mark Duff

now and conservative number of we Right for most the the of very is to very waste We're out there yes, volume a the oak transloading a could decon doing year it's be types those see some X of a waste on be limited a and it large XX DOE now would closure. year volumes ridge we depending within our would million we're use west million moving equipment million between very minimal. and couple If were so . target doing at revenue it's things

Howard Brous

services any foresee general administration. about obvious the should Should or or in possible presidency just the DOE? administration change win One in the you change by conversation treatment do Biden

Mark Duff

think bit for little a programs. for of will win Biden good be stimulus would think likely number happen democratic mostly positive the management a better things that the us if the funding DOE been I environmental I overall administrations in future but the No have there's

continue should Trump to risk the that administrations staff at likely some that between as common is and be bigger a we've the see sites on very administration already couple and that federal be but momentum things would of forward. we'd that change I but a the don't that we win some significant with likely balls expect carry bigger risk in would as not if staff We Forestall got of Howard lose the There say of changes. headquarters be we've just federal well the as does administration between a strong [indiscernible] the the will that or they'll is both those will mentioned and projects continue in they'll Germantown thread remain

don't ARRA impact they XXXX. have I do potential billion going there with over is the like a I the either with are what have So they be initiative carry was the way back will we $X stimulus and biggest see dramatic think impact to any there in

So those two ones. questions are big

generally good for on be ago on We're same moving really up had good when thing management waste action the last a was just speculate probably it'll to to generate you so and sites. waste they'll and hoping As us. it but that it's know just. the all lot they us there's almost they've spent the of what do would package stimulus to ways clean be what That for whatever they now but emphasis XX years oriented hard

Howard Brous

do think that you TBI Just we could do two guess? will re-awarded and contract that when The based it when on be your ones. quick awarded be more assume or best real

Mark Duff

things from move X,XXX continue familiar I I forward not that Howard. as contract side the summer. The the I now. that of and right forward with waste this get gallons the said Yes. through anticipate contract, vehicle begin the removal know regulatory for by to would with to tank that they're to it really moving the I'm with

X,XXX the So overall other of been some this we've through I'm on We've all quite the they'll I and it this really sure. be time as to high poisoned mission not continue well. contract moving initiative hopefully and really the seems and obviously gallons the way than beyond. for comment can't for waiting itself value to used

on time So I can't I'm afraid. you the give contract a definitive

Howard Brous

for fair Best you No, your Thank luck. comments. enough. of

Mark Duff

Thanks.

Operator

from [Operator Please Instructions] question ahead next Our sir. [indiscernible]. Steven go

Unidentified Analyst

Good quarter. gentlemen. morning Good Congratulations.

So basically normally so it no met year one last you sales. said did say in you it I

to is and in So service, all example that that be completed the service got million quarter? you're for treatment in the you million will like finished going million in that so in X.X XX the, saying be to in XX be is going fourth

Mark Duff

bleed in the No year house Steven the treatment be won't next that as and side the pretty goes. and QX X through waste the will all That far significantly million quick of completed over into rolls fourth minimum as at quarter.

in So much down the way we depend indicator waste on is we've an mentioned replenishing how we are that getting of it slowed along receipts as from but which COVID.

But a we mentioned we It good after year first start increasing. slow of saw it pick and have September November, it to did weather on typically We back will is plateauing waste in up so some we the down permitting. also shipments December. likely see

We So hope million into for pretty right your XXX well. million year. to QX the plan break to for in revenue QX answer mark the the will we XX to, question bleed

plan year. So a well good that to QX as next and take momentum we into have

Unidentified Analyst

off am correct Now paying numbers quickly you're down paying the like over I you're loans. debt I look

midst all am I debt perception? of which too correct is you're down in the while in this you're paying this enunciated So but that doing not

Mark Duff

Yes.

Unidentified Analyst

Good.

Mark Duff

Yes.

loan we shareholder and -- the We are loan. had term

Unidentified Analyst

Yes.

fabulous. So able are that's that that's be times that I say mean something these to up in sales mean your to I then and

a in not waste ask mean to COVID is when So a you to it's me let why we get got problem I treatment service? generated talk be I so question understand okay the but

Mark Duff

as in It's procurement. as not a is in service problem even much service it

now from field our even the clients doing, are though home. working largely we're So we're in

XXX XXX in the about over have field. people people We

$XX is million occurring. we're concern operations continue. Where dollars we've outstanding those So without bids in can seeing awards some got

some hopefully a loosen seeing we procurement into could of we'll or flush share up quickly there QX nobody this our proportional or house well delays where wants. we're the very the the which gaps awards be So situations continues is of thing if impact and all that get we'll see have fine our then COVID between on could and and of some side projects and services them

that's So on services issue the the side. where is

Unidentified Analyst

right. All

So this million staggering. in you XXX you're just itself going year said to do it's is which obvious a

let's the So assume worst.

words to you do would obstacles million and there going other think million least can you expect I that XXX continues. think but normally you in to I do XXX quite I You're do the this flat do but next is thing be out all year you which think that understand at an accomplishment if

Ben Naccarato

great That's is will We a question a Steve. The yes. it be minimum flat. think answer Yes.

been large quite it these We having on year. have least were it get projects We this also million. year very XXX year. minimum plus here and years we and lot at we've almost year for growth XX% really to some goal calls break which planning for growth over time planning talking and will year but of flat that awards took us had bids a are beating were with this had be some we several over we but to of submitted the We waste to receipts that growth to had those we close a every and last be on $XXX or higher to we is see next big couple over us year modest with projects get million would but this our a

Unidentified Analyst

All right.

the don't have you you million you're government. that and got presuming then So the from X next year flat

be flow? all You're right cash going to

Mark Duff

of better services as We're Ben a is less be was kind generates Yes. treatment. expecting because treatment margins flow. cash of than our obvious the assets margin which is good and We'll mentioning

We We'll put getting average are on up normal getting up in the the and a fine. position. us waste margins receipts will back EBITDAs be to

Unidentified Analyst

right. All

XX say there's one's not the or out is there in are is when million out there issue it go it's just [indiscernible]. people no consummate can't the field they because the that So or you the bid to

Mark Duff

field procurement as the It's the much so it and Steve procurement is folk. not process the

privy position you to our we're it's can't information. we inside think tell So I not in really it's

we're So that's say procurement COVID. would it's it when that process than speculating taking we of a longer because normally

Unidentified Analyst

the All treatment's down. right so say you

So presuming – how treatment other was In okay is that? been more much words would everything or

Mark Duff

Well it would have been double.

Unidentified Analyst

would have been double? It

Mark Duff

right half but now XX in we believe to met come million yes would so that We'll XXXX. little of for were Speculation Yes. million bit we have higher Steve on than a planning it. and I XX

we waste receipt million Gap] lost a XX to So in that otherwise. would gotten million have [Audio good almost we yes XX

Operator

you. Thank

We question go ahead will Please take Howard next [indiscernible]. our from sir.

Unidentified Analyst

Ye. Mark, two good quarter. questions. quick

Mark Duff

you. Thank

Unidentified Analyst

One or or is a I sort fair we I something? and next hear XX% about that but to quarter be you're long might about right of the Is down. to you're the flat two term am optimistic missing expect summary

Mark Duff

depth. strong No, start you on of some there's operations and but a four normalcy seeing early if get QX little like hit could a backed It's in we procurement normalcy momentum people really QX seeing up we of see to good that be QX we need not the to this we'll Again I and back got any or expecting kind in a before QX thing got We're be to us more We'll it right cautious. cycle impact break some see and the Howard. be QX. it's out coming pretty the QX a looks but months see head mentioned potential that bit we and could can start up. COVID part start so be fine. the three to

Unidentified Analyst

Got out play PPP you. going loan this point? And it how as you see is at to a

Mark Duff

and it's the the now on and October. we've been right SBA and that started be or with lender we've it and an past clock of the got primary about is forgiveness told days SBA for middle what in up application by can the Well to XX

Unidentified Analyst

the on is now right everything presumably And Okay. books.

forgiven. assumed You haven't taken going that's that any any to be of

Mark Duff

Correct.

Unidentified Analyst

Got you.

you. Thank Okay.

Mark Duff

Thanks Howard.

Operator

our take from Please will sir. We [indiscernible]. question ahead go next Anthony

Unidentified Analyst

hope Hi you all well. on good Congratulations guys quarter. I are a

Mark Duff

Thank you Anthony.

the waste state that is low vitrification ecology argued state's Hanford only vitrify the decree underground you department's regulator left supplemental tanks an her is please So XXXX activity of of the professional at and of agency the treating if radioactive seat waste underground four the method plan the in agreement tri-party a point question department view? you on Washington half after What the to are result to impact do occasions just Hanford's a has has opportunity. and Hanford's tank based a years for vitrification? you for multiple departure and that all discuss lead storage program the as department I grouting consent have one the Hanford prospects waste. have the underground or stored The through supplemental to expect ecology on treating amended as waste of additional of a different that nuclear stated in of pursue on activity method Can years of her acceptable low has require

Ben Naccarato

I'd a on Anthony be to mean about I this Well call. comment regulator hesitant

will construction their the I department demonstrate in great that their strategy I with the their action strides has facility tank in strides in of significant made However, progressing to They've cleanup their made say and program. think and DF law program. also overall infrastructure

overall are with a and would not the why forward lot at with negotiations momentum tank initiative and renewal the river what's distance of and things a on from a with optimism supplement law the and in the So the in that we whole and DF initiative to so that a are and focused treatment include XX regards the DOE happened to positive has leadership see facility what ongoing page this same that moving all being last see treatment fresh program obviously well XX to months that Savannah a these watching that changed of the which has off-site the waste. we distance waste with commercial see we're from We're that's there in we weeds momentum, is lot Anthony. the state with that the on are all and a as but we

I relationships how So of associated strategy much don't the know that the is overall. leaving much with and is DOE as by manager they it with regulators have as it the

Unidentified Analyst

expectation? summer of the TBI or is X so that you more phase about that a aggressive the is And when the spoke timing a expectation conservative being

Ben Naccarato

I think that's conservative.

of begins things working and the things their again assuming and on again down, it on hurdles downs regulators that think life are of a DOE that behalf meetings on I depends much how kinds slows that COVID to with those but normal lot back is delays know continue then all may QX to see is assumption February reasonable. conservative I think a not If January, a pushed which COVID more be necessarily into the yes fall. time we frame that get summer to through in that we

Unidentified Analyst

any Perma-Fix us by to task the And extent selected DOE to-date services on are Okay. contract team just what around Can winning orders was you contract of was expectations part associated in led has to XX-year with Jacobs your what IDIQ by a an associated give participate that and with this announced the DOE nationwide. update a it? business

Ben Naccarato

and up dozen expectation other to question. spend what's that because the the they've Yes. meetings they're where were meetings since to of or depend or to anything. queued had said stimulus. but for so a DOE's at anticipation know then backlog regards there queued two anticipating forward were That's was how several a those had frequently response projects on was in Anthony and in moving contract conferences have contract. we other that there's question with half spoken one DOE that going asked meetings says selected It point they all by really on we seen don't that in haven't that folks up that their may depend that vehicle. carryover only one may they've It conferences

be supported and that formally. haven't We have would potential completely by a to DOE say speculation the seen said not regards anything we forecast in RFPs would for and anything

we So a and a if forecast get we you're put forecast is to anything typically and come task I forecast haven't think orders the out. some we Anthony expecting a seen without haven't seen together know that do one you thing

Unidentified Analyst

very Okay. again quarter. much Mark good you thank and congratulations a on

Ben Naccarato

Great. Thank you Anthony.

Operator

We question our Bob will take [indiscernible]. next Please go from ahead.

Unidentified Analyst

to quarter. of quick it want guys system I is sell understand ask and big forth. Hey that about Perma-Sort you help and the me question how how market kind so a good a just and

Mark Duff

waste really yard it we've in refined like that it that lot last onto conveyor hopper. is waste of year technology a a of into a does the what is quantity and system you Perma-Sort put a a belt. down It a The Yes. pours

the these far the to moves that the soil as and activity as detectors to end up software a the source, radioactive go which way detect go. conveyor proprietary gets belt as with some detection gates that and in conveyor have tell cesium We it the about systems

pull a to contaminated contaminate allows very So that way is you a kind sort at high very but project side. the quality What which or can thing fifth San of other rapidly it very for the clean this side doing really We've for it with degrees have minimize to allows fourth pile very goes the rapidly our an is along we're Diego. some waste system. that that and out either and the this time in into least hour projects it an one send to on on expensive do dredging is facility concentrate or new you pile to disposal operations you you of is XXX somewhat now with to rapidly moving tons done part this or other so first like

market the market remediation radiological expanding will very a then tremendous this on goes R&D doing there's of for as basically well. far that waste would, some out As there allow you're We're doing very non-rad constituents like if and this work and which rapidly important mercury into upcoming missions which contaminations upcoming capability sort well. contamination types of as segregation to would other for bids of other us are very types that

detection those and systems those is So the if working. broad get very software working we that market

see that right below So important part put solution do have the applying join of position projects are be a million savings large some very providing and real ongoing. procurements. cost but two projects other that up is now this it and of very to XX lot procurement values coming a larger of we projects Perma-Fix for The to a of for solutions those will for teams real in we

not expectations clients So but it's performance on we've we're with. brand has current started. working the system and really seen is all new the for that just exceeded this getting advanced It's

Unidentified Analyst

of RFP that project? you or do is an process then type how And Right. find the the in customer

Mark Duff

have sometimes required to mostly It's a waste of rate we'll of required to they'll our costs. able have disposal and Yes. a the a process segregate solution it's because RFP just cheaper technical ability be waste rate where

RFP but ways the through process. mostly both So

Unidentified Analyst

Yes.

Thank Great. you. Okay.

Mark Duff

you. Thank

Operator

Our sir. go we'll question return ahead next Steven Please to [indiscernible].

Unidentified Analyst

the problem phone then get down. on earplugs had I goes I down voice hold if I the my don't I when if know that's

stockholders tank something For who basically talked I this months my it it's came questioning said if it's acknowledged and and that about an which I it of came DOE DOE a this going it in option. to ago know the report or out out in report fellow and it said the six it call it and know be could was responded basically was you say they guys leakage the last that can't something the about GAO don't the that then the and to addition when one else the of things one is TBI that yes alternatives there's

is and that an not this and decades. So XX take they as and that could happened is coming I for my did there personal I'm this saying backup as to be and to a look says is something this that they and I engineer listening you I'm God happened very is is I'm I'm will system that that something amazed they're and I technical everything forbid and what simply read the because other going opinion years just if you're issue not know

government the So cost pumped small still into do been in money that's even this amounts to it's Hanford stays to because if has it make you guys economy money the more going what to all our money. now this were sitting just side doing on

So to and then going climate out that's ecological issues stuff. we have crowd

Mark Duff

the GAO Steve to had certainly it's we've they do seeing supplementing yes reports. couple supplement alternatives the strategy well important highlight the start the but next sure those and engineers along with question as supplement think hopefully reports we'll and I'm the of not seen going to reports, in I IGs words ongoing there some core that had way along on years.

Operator

go We'll Management. next question our from ahead. with move Tristan MTB Please Barr Asset to

Tristan Barr

I since Hey right I'm guys was quarter best QX XXXX. congratulations of if think your on this

Mark Duff

Wow!

Tristan Barr

what the And a mean truly your tone people guys in a million what pandemic by monster start this pandemic taken $X you've you result mean to treated million may most and are look of had warns the EBITDA it's no the pick been you point normalized things the get this at back delayed and mean of of and in and that customer I the of a of the where to $XX of encouraging like look needs year business to I that fact about when didn't disposed continue. admit the in it's a the and lost through sitting sites that's fantastic pick to have a of just here business. at I amazing they accounts and up hit that made waste million you've you should and have mention be on was may directly be I like is so go back it's think million call guys results through I where to environment that's high margin I $XX companies a teeth to at treatment to kind what little own $X watch away look kind I pandemic up. time conservative and think press stock mean on in must release quarter people

at pig So in a python. some time the going in point you're to have

of continue You I people that and understand people done had sounds I pandemic weak a the government be that telling and well just conservatism excessive you're it should don't the you've business. weak. job this good and led believe a be back be QX mean like, strong QX turning as be will QX kind not business. service get should such going around when could QX to the people question you is bit going little you to to switched are very a QX you've to and it strong

but going your up come side You you bids weak could to the highlighted can't but of pent-up at volumes and the and you demand the there in at quickly QX people they awarded that margin return have a that's way time where that's haven't that back off for to may high treatment will fact the be when and very-very point all. control be warned mean there's of business. long shouldn't you I a point some they're as said out lot

the legs in could lap the acknowledge business job you've strong and of done a take QX to [indiscernible] So while would the tremendous I little a say adding a very wish kind that guys still you turn bit you of yes service weak and victory the have that QX. be

You still strong a QX. have very

debt. down paying been You've

out the to changing get forgiven TCC the we that to prospects the treating to you we PPP a the seven of waste rather likely positive could like said the than building the the really audit road. take statement just guys Tankways down the on is said positives massive and can impact look just what company which the for reward months a Steven absolutely the mean go the in what should focusing of at itself response have by on in pointing DOE You're and time. be I kicking it TBI seems two there and of loan way could out six significantly the instead that wrong keep

Mark Duff

we're did understand also that brag and in have first caution company coming thought a I can't the to I publicly has lot in comments about. is trading minutes you're what the I the I COVID. now that Yes. stock Tristan appreciate last the can right drop explain your where did. few We I Well for we not but expressed from. say

challenge many In that fact expressed you find caution. haven't to I

caution now had and strong chugging along up expressed been haven't We backlog. until because good we've pretty well

associated causes the impact had from specifically that particularly caution So see COVID expressing coming be is we've we're concerned. what that we a with to me delayed

it. statement in it takes get and technology and I the tools management the the past what team, said to have as also we However, that

competitive be and to just taking our up words our even and if a some going market's to We're does announcements impact. not procurement regards and sustained we're not it going In to other receipts. So lose edge. it's away and delays concern going us waste delays hit not

I looks much So close and our without at I to appreciate million for it'll we're too year in think get the like we over it's line but to your like over us problem the regards QX have said to well QX do being strong comments finish a conservative. and go going going XXX point into this

We our going with to are investors. forthright be

Tristan Barr

in just seems that being $XX is a overly $XX revenue treatment again lost? understand forthright. to million million I little The It's it cautious.

Mark Duff

It's could not It's amount lost. it of is say lost it's primarily, limited very it's delayed. I probably

Tristan Barr

again. So

year plus what So you I mean a company have out past while point I even in to what the model doing mean most TCC $XXX a I expressing still a mean companies would at a waste kind and will what not including time now on mentioned guys in the you including the some are the the I to environment not risk revenue when potential correctly paying guide in EBITDA down growth. caution to look like TBI COVID. I XX% that's debt. margins. we point some out and doing normalized with and and at in and environment normalized of COVID a so you to looks mean mean is XX% normalized you've python I get is time also pig a pointing the delivered environment point in based the model mean restart whenever been you've what you million benefits think and of to XXX shipments be like I

this. of side get cash You clearly other to to flow have the the

of pandemic of in point point out mean XXX you the contracts I two potential much that at So executed $X.XX $XX million look base think also high or stock that guys you've have big been and we and imminent flow got million time. supports do to forward I I and build have should think that's to that's hell we to and think where feel that a to off to hasn't you're delayed have some at this be any well the revenue a and higher are story plus I are very-very-very massive time got margin not non-event could standing pandemic of how the bad EBITDA would the global mean price through and out things awarded and attractive to that million so is going that actually and kind pitfalls that and you that of and people what sorry point lost we're and the you at you've fact counting exactly million and some you've like you a correct and with so come already in through price but two this tell. you guys given counting been of looks good the with need a pretty it that at the a guys I like $XX a looking side they for good these particularly argue risks given plus to point out promoting and I to the in $XX been again you not other start point say

Mark Duff

Well we agree with you.

to awarded we we've As this how changed. We you point in to We're these them. Tristan opportunities are on a know at that do you to think lot build get of and mentioned we and are we've big that. some have undervalued hoping boasts about been regards we doing

hasn't a We as over anyone happened had haven't that that with they last months the that nine to haven't expected lot due the we pandemic.

that talking and the able next of releases back get press and couple behind do us the get So see sort to the hopefully that growth months about. you're that we'll be and risk

Tristan Barr

board certainly I'm of members show stock advantage that buying of and it. some you great I'd dip glad aggressive been like that invested take the forward have I the well. know that me others as this that stock. the confidence to have I see Well and in personally. to the in you are Appreciate on under their nature with few have you that resources stock to to and the hear look agree underbodied

Mark Duff

you All right. Thank Tristan.

Operator

Our next to question we'll go ahead [indiscernible]. Please Steven sir. return again

Unidentified Analyst

personalities simple been and I'm, do your years forth. I Tristan years were with heard were I that one in don't one four what know on made I'm ago you yelling right about government and and and comments I Tristan's has don't guys Also a come the going were and to costiveness different so because I a All know and I have and you also be, to agree was if it's I've humility. but with think optimistic didn't that people contractor it deal then it. stockholder I two has now

in you're exceeding every is you're if showing with to Now stockholders your time now rather you. and now agree and still going I there not and as my big say a again bit and in that think that try doing. a and it's they're they to I out little way study what's need I'll even think and fellow it I calmer read to plan defense just understand Tristan enough build still vitrification going saying humility I'd humility I'm you're so it's totally stock guess defense I showing even though surprise your defending I'd what Mark you're agree us totally is what and amazing you rather you have you I undervalued, because this

medical A that's that mind don't it there's change and just education. because in just zone this there boggles climate So an When has about my I dangers going earthquake is we're see I mean couple We I arguments the questions. still are it. what Hello? out other there. see an away. there. been get and

Dr. Lou Centofanti

we Yes. haven't away. what Hey to in going options looking terms we to we several still it at terms of with in we're it's still Steve see options do medical. go Presently and with where including Lou, of it's

in to various with paths what of medical. down going we're So do terms

Unidentified Analyst

Yes because –

Dr. Lou Centofanti

medical we other that possibly drain as of ongoing. can much point we got company we [indiscernible] at cost we thing and One to this on minimized the say we is with can mark Steve the initiatives sure don't have and operations make absolutely as

Unidentified Analyst

after that were now can just effort does your does great mean? my specifically the in on. depth folks were to that go When there's no do away about because I stuff bold it Well enhanced you people? and go congratulate, too not have but have opinion a new applaud also to when It what to was has when say Is out I'm go there many talking you've I one to infrastructure and trying mean? that that when so Mark that but you should what done you say statement. to what that go I

that So mean? what does

Mark Duff

as hired Yes. on goes It's statement Number couple side tangible branding too directions. the and of new more things. house, sales as commercial It professionals some that to one expand professionals on into commercial additional us CRM support Steven. industry We've a a the marketing added from us pure very marketing to system a far development. deploying the waste couple different means we've a organized groups. the comprehensive side that's that utilities to power are in come treatment We're folks new into the break business all and more

big got So there's initiative a we've ongoing.

our organized new have quarters. will is marketing We and it's in and that to place application plan people industry got we've couple in a approach what in expansion the a next detailed seeing start and business in place more so

Unidentified Analyst

a plan there's presuming there. I'm a, there strategic Is

is our to all they're but got our through will dreams the dream a road say So we have Hanford. say to it all initiative dreams a live down let's with come don't you strategic if let's

somebody words So discussed? service strategic that becoming of you plan of is a somebody, buying in where part a go else more of Is other like becoming there company?

Mark Duff

each it's Steve every quarter. discussed is. board meeting It at

others facility We everything locations on at to the work there's number any from six same expansion have just of each at transformative international deploying one technologies as is capital we is well. different time and of improvements ones [indiscernible] to other for TBI new time at pursuing of of a initiatives a those. the or There going are seven given our time. list there that

lot directions many each present to move of one the those. but too to handle on a in the quarter different we and time we from that do not and board we quarter we all enough each can maturing keep at of So same quarter

Unidentified Analyst

more two Then right. couple All questions.

that the tank alive. a made is closure You comment

doing have are from I still the that been, because people is we they extended to I that was infer because award but tank rather it had the discussions they present we're didn't DOE they still extended extension do that them out said that they people there maintenance you until comment. and hasn't when odd So extended and comment it it's am and extending that the make it considering before

that because award this my they to it out you again So or still were going going thing say is be, there question is it's when to mean radical. does is what it

Mark Duff

is look they're based process. Yes. leaning continuing protest and that enormous procurement at the right they do. this made to It's it in baffle which basically on in things. might an not could do a election publicly been the the certainly they're it first there or what inwardly industry don't something said it in they're given the something has still claims There where into how the know of or which and time don't do I and with they they else amount is our DOE so guess I'm these what Steve that in how process about speculation fold way might out of bid They've no whatever overall so future indication is they're going really might on do the has as is or or they think to go do. a if know to I what happen anyone now

DOE So that. about all are The have going. waiting that's further no participants we like is very really and idea Perma-Fix can where really simply for information say I

Unidentified Analyst

Okay.

year of So action Washington? there a by high that about is of maybe low there's or discussion I the high caffeine state that's is was definitely questioned and reality much that now. but the year is I There ago low classifying DOE now still a accepted don't and the too about and ago the know drank

Mark Duff

at point. I Yes. that this can't address really

Unidentified Analyst

my is imagine though mind the process you're gallons to X,XXX in since presuming get question a right. this proven would long gallons right does the it I'm you've going you to you gallons? get time of All even it's you ask how but waste to X,XXX when get to last my X,XXX you if all the That's science I going presuming that take Okay. get, Fine. not

Mark Duff

mode. not a lot. we're week a it's not actually days but in few only at about most operational Probably because an A

Unidentified Analyst

stockholders wanted look do stock that fellow a my you're point I right Yes. undervalued. All make I understand to so right. All that I the lot. is what doing. talked believe

you've to yourself in this just is you and just what just absolutely done guys I by you I guys just, applauded. it's I need mean survived you be gone think are have world. surviving. I'm this you've out, mean I mean you diversified befuddled world and

You had a substantive quarter.

but the promoting us you're stay one hope Tristan. I right. It's and means You're humble Yes. humble going disagree stay humble stock because you when giving the thing that with evaluate positive to and negative. all stay

it for want the think that's and and you're about to going to plan happen going I then type of to You're can company what own.

anyway congratulations Thank efforts. applaud and I all you. So

Speaker

Thank you Steve.

Operator

our sir. take [indiscernible]. will next ahead Please go from We question

Unidentified Analyst

morning know going but for record with said the little he mean guys. here I there I'm I what agreement not say good just see was we're with X% I what if into that to be so in to the tells doing talking say a already it other to what heard speech away looking that little there starts his Tristan a QX if when that here. XX% Hi, on I sounded not we're far might you in poll we're you're hiccup that I go wanted you November understand like little in well do regard April a hand to start it's the procurement I something really at exactly and

front COVID what fairly don't that to to gauge might surprise people back in see of to actually treatment want did a coming shareholders. saying here delayed why issue don't want can side happening an don't to that's out it. shipments get We us least have there you been the Let's with for going us opportunities we is though at and that a We through them even tell never of been almost terms already. and probably the that to or every company couple quarters just ephemeral you to that upside is face. go few I potential or can possible provide that again need have outsized It's outweigh in impact really a issue on nobody

this and two say any interesting into billion first over that won't thought carryover of not had would are one potential that some you heard to before fund $X XX% very So amounting hopefully being you did in I further that a have the DOE obviously weigh were I that's that to XXXX that. about a increase I on going things incremental but exposure and

stimulus I kind to that's else. an Is item there to glad try Is The would next have where it. likely department to if a big I'm we does year? they it spent there of have is question just to another be that have So to highlighted funds somewhere redirect be spent? provide money we'll and you say well that option

brought very question a that and was you whole of thing potentially interesting be of second up stimulus wasn't that I aware that could a ago that So that's was was the the this much first like decade I comes then factor. could package there out there idea a also new which thought be huge

over DOE and it two at the this it's because X idea two those economy a lot before. Biden Those again likely I be or the moving to about happened bid have of things potential that contract there get the to are and and them. mean above that if large carryover the been decade fund may spoken items least billion So the democrats going an have you before that the we a and they're are you one huge opportunities of over and have in not options out likely of consider comes and

other this me again on spent? looks So $X tell the gets fund what on historical versus could provide stimulus What's to it does color you likelihood billion last that spent? have a it package one? like be And the any

Mark Duff

to billion but so week opening from in a directly Tristan's had that appreciate or Yes came statements to X that regards the about Chuck. made carryover. I they your billion $X that comments DOE in question some your about address comments ago

due XXXX to So fund. It's Congress overall. shutdown was to money not into something that specifically in impacts for spent COVID carry been from that's necessarily It's not appropriated by not and it's the XXXX. a

to money that by spend enacts until approved a can can't carryover signs then their that's and into as they budget and a addition budget So budget government in they the that Congress. tap

say with get think those say X this or around they the on budgets So That's one budget XXXX. our the billion reasonable speculation fiscal congressional would and billion assuming X spent at look government X the congressional could that for year marks XXXX. that I year billion that then is which go last of were they be okay top

the they results know same what to DOE press not out the I release they'll idea what been expert I if the that it spread have they that funding. spend. but not have regards carryover with have types having the of absolutely and no an a it's whether as planning to are to are do will don't able I'm published rules So or what it seen other articles fund the than in on that the are. fact these have things that they're

where speculation anticipate were ready remember projects administration was that the Obama to something things have that had not ARA As would of early comment enactment. or the as given if was the not shovel if seeing were the type DOE that speculation for as the that funded. the far complete department that If that's to case infrastructure with well do package along I all way know before second similar stimulus had something they that an in they've they the we to

new So fund a if that's is speculation new something there complete administration or would like the that again whether administration not. that

don't for We're is potential any have over. something there's election not saying was after that be like anything we mentioning on to the but So there's that all going a like was again information I that.

Unidentified Analyst

administration has at this the basically think well and and take there. maybe I'm looked Trump hasn't budget couple that I going that thing. Well you under in years mentioning here budget think only and Trump it's that no given on this they've more that wrong little is correct maybe hasn't I think pretty the down that's important down Hanford Hanford on take overridden him of than a only bit decided and decision and worth this it's really last the the to me and let's and at going happened the not of if sort ultimate to and to but because strings look [indiscernible] said we're we're Congress effect We authorizes

know this you So don't how election out. turns

maybe Biden argued I highest democratic at that is and a a move going should administration occasions do but that? Hanford. president historical have the level do this couple about the You going president we more don't least what than administration funding at to wrong just less on that Am in know into has for of

Mark Duff

it I Chuck. way the That's understand too

Unidentified Analyst

Okay. Great Alright. quarter guys.

Mark Duff

Okay. Thank you.

Operator

with Our go Management. we'll Barr next Asset to sir. return Please question MTB Tristan ahead

Tristan Barr

I just I be of more have I being kind means might of mean in that you I'm a should wanted that mean on now that been services. it benefit outlook. of delay potentially all if something just more money also still clarify should towards is the that money that a to and correct QX expressed flow positive likely through, I than only the in as well time point do at amount think sunshine that year and call the the to Is that this of QX have around towards have procurements better caution potential no think by could wrong I kind unspent be substantial the the and treatment again be me correct? potential skewed you guys of the rather would been from prospect give year given pickup fact the current flow kind obviously of for stimulus action this next balanced into of here

Mark Duff

it depends It's projects likely are that funded you to impact both but on the Tristan. available

tell. tough that it's regards So to It's projects out. spend or move they whether would more procurement, hard cleanup really to pretty in money simply waste service tell DOE would to how do

Tristan Barr

Thanks. Got you.

Mark Duff

It's certainly, I be would assume it both.

Operator

be at All right. to we questions That time. this all that you. have the Thank appears

Mark Duff

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

mentioned outlook at from you a sales coming have challenging highly we're quarters. well-positioned fourth our earlier successful, remain and funding Thank pipeline, based XXXX I potential carryover our for could sources strong for on accelerating for by backlog the more activity were we As we encouraged what the due in we successful navigating several the into in participating. heading current environment bidding are the and COVID-XX been and quarter to business our

Operator

this for today's teleconference. your gentlemen and does Ladies you again conclude thank We participation.

You may at and time disconnect your have lines this great a day.

Perma-Fix Environmental Services (PESI) 8 Nov 202020 Q3 Earnings call transcript