PESI - Earnings call transcript Q4 2020 | Perma-Fix Environmental Services, Inc.

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Operator

Good day everyone and welcome to today’s Perma-Fix Fourth Quarter 2020 Conference Call. At this time all participants are in a listen-only mode. Later you will have an opportunity to ask questions during the question-answer session.[Operator Instructions] Please note this call may be recorded. It is now my pleasure to turn today’s program over to Natalie Redman.

Natalie Redman

Thank you Emma [ph]. welcome Environmental and XXXX Fourth everyone, Call. Conference afternoon, to Services' Perma-Fix Quarter Good

with afternoon 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 fourth 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

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

Mark Duff

afternoon. the throughout our revenue services of despite the implemented period plan our results to Perma-Fix impacts operations a nuclear We for pandemic. needs which these right. We strength Natalie, segment I'm All our in fuel generated fact good the clients attributed the while from that during of and achieved proud they COVID ability profitability the to and to very treatment their our revised meet of home. successfully maintain own growth largely continuing and solid working or were segment. of time safety a COVID-XX Thanks XXXX

approach and addition an have reflects focus dedication operations and achieved drives is XXXX plants in also safety In XXX,XXX business over having our important hours significant without performance an conscientious field as to to the our a of our we our -- milestone improved health record the incident. recordable programs ensure This milestone throughout of which to work worker and productivity directly field. attention team safety and in detail in

and XX.X% for last in net $X.X receipts Turning and attributable common months. associated waste adjusted waste approximately approximately million income over This of an results. achieved year. to million with accomplished XXXX EBITDA our shutdowns to $X.X increased over of reductions significant was stockholders the generator despite we Revenue the nine

XXXX announcements particularly business offering our best normal revenue get As our in million, throughout for segment services of era the until waste likely June supporting the generation waste continuing reflect which exceeding time to regarding organization. that industry. performance Perma-Fix’s implemented reported general, due period by and systems to is was realize have the that enhanced our Obama the and a $XXX XXXX March revenue this stimulus improvements since to program. our we and XXXX, was we're not total the and in development and slowdown in procurement but activities technology been of In enter levels sustainable With XXXX will to made timeframe year with increasing personnel continues receipts we've

of over we've over volume million on. orders discriminate competitive EBITDA task last and within solutions maintain variable the the new demonstrating XXXX field around month waiting throughout costing QX and bid in as ourselves technical and hundreds through anticipated year XXX Perma-Fix management talent and and It's submitted and is solutions We've a five ability waste procurements leveraged XXXX. four both plants. proposals in down $XX to that's into performance us joined have With and and years approaches. remain in QX of to in our the our and directly best management and and Many was submitted market. average our integrate costs on on of quarter our our within aligned of the performance future is SG&A of with award, were our anticipated. of the millions dollars leadership to or enhanced of a worth also Overall the based bids existing been approaches simultaneously and firm maintained bullish on million pace of procurements, we and have million six technologies XX% few costs on since currently within $X.X a Our the IDIQ our rolling be forecast for procurements projects awaiting RFPs developing level that management past provide our horizons our just to over are throughout which QX at overwhelming noting to through we've to these opportunity three

proposals beginning we our plans the and regarding market competitive our type and has waste responsive responses of challenges nuclear the four number A management department larger and these to objectives groups. the waste and officials primary regards that for to rate, optimistic treatment to and statements reflects by first procurements an In from by and growing government with a and innovative all develop market While few repeated and predict this remains we're this action in are the in some in policies. highlights the visibility require are to regards position don't the both proposals increased resulted supported become waste fast This house. of to growth solutions quarters, of of Perma-Fix the the the waste the and the next opportunities. very see identify, to evident facilities from address funds of beginning management on to client is projects these of of deal management based industry carryover our future services suggested XXXX the conditions, energy this in capability six general activity the new for side form wind our within their responses in over direction the include to optimism

integrated which several for have Second, contract is state the as models formerly disposition include well as recently the contracting comprehensive solutions to requirements to been which contract applications as innovation waste which large and known tank published achieve DV closure success. tank including requirements treatment end Oakridge [ph] closure technology bid for support

supplemental includes well. management we as they the Test will business at to continued alternative support. continues provide we small value a Bed contracting staff of include our problems to at values scale for in work, decisions large to in our contracting this offer remain foreseeable is project opportunities And regarding of plays to In and of capabilities to a and third, like future advanced defined large business, waste oriented meaningful Hanford remain as leverage well oriented DOE for augmentation solutions or opposed aggressive waste business small billions as progress small project call which with scopes assist work bids Perma-Fix types tank large Hanford. addition, offering This requirements disposition the Initiative TBI, which a what the these to solve to into

unprecedented We're Perma-Fix of hospital management where by our which this will a evident This provide to that has we in to adjust up which staff and and a opportunities momentum discuss ability XXXX a our most a little professionals now Ben that for provided will reference. have health and Seattle in over the continue turn with to bidding more any our the unique it solutions another reference source solution a of Perma-Fix of increasing clients. this as that complete revenue addressed innovation associated back On the strength dedicated right note, project, XXXX built quarter radiological few Completing and past well great financial recovery This growth and and Ben? other positive needs vision our strong teeing very our and in company As over solid and to clients and pandemic. our was expanding our results release currently strength who with foundation research clients. we're detail. in pull team to supporting release into to waste a is meet and to stated I'll of our recent generate public market along out underscores industry physics experience our as we are while to quarters, changes. opportunities with

Ben Naccarato

continued fourth our increased Thank you, $XX.X to Mark. million increase, as Beginning where an of you million, be our by $XX.X company operate million the quarter the receipts from last by treatment million fourth over $X.X at by revenue on compared or led operations drop total million said to $XX.X continued the revenue segment, was The our year's XX.X%. Canada. that's for impacted of as COVID-XX continuing in quarter numerous increase our the by with revenue U.S. pandemic. revenue, was as a services projects increase and to both prior the The of was $X.X offset plants in waste treatment year segment

to XXXX. revenue was in $XX.X million ended XXXX, $XXX.X year the For compared million our

As of as COVID with our main on-going projects million the the during increased generating increased year of segment the the revenue our increase million. in $XX.X offset revenue was to treatment operate the service the of driver or this $XX.X did XXX.X%. segment which pandemic, drop most continue Despite fourth quarter,

fourth impact received significantly a in revenue through year-over-year approximately impacted start our strong Following both drop the resulting to XX%. of in a throughout COVID of second the waste XXXX, the quarters

to diem million This was segment in in our year, XXXX, subcontractor disposal and $X.X compared $XX.X sold costs an quarter. expense. in compared an of while processing sales XX% volume to increase treatment year, per less days prior supplies and Year-to-date, approximately in the paid Conversely, cost XX%. of sales by transportation of the in to or XX.X%. increase the $XX.X increased prior $XX.X XX.X%. the cost million million increased Turning lowered related approximately of the XX% work sold, and fourth million resulted material segment costs of the quarter $XX.X project Headcount over and of in million travel increased to payroll, or goods cost $XX.X increase significant approximately service million -- in the was

expenses, quarter, in over expenses. less expenses. diem As with lower million work processed headcount, in increased in XXX% XX% volume, days over and million increase in disposal payroll resulted $XX resulted project materials in paid subcontractor the which and from higher disposal related on per segment costs $X transportation in treatment The XX% labor increase

and the gross XX% margin was from change the the more the to result for work does gross The to segment. million $X.X mix than prior in quarter in approximately segment revenue competitive generally in was lower of group the compared year. is services Our revenue profit of was compared million a quarter's the XXXX. XX% service million treatment Project in brings drop the of in is profit $X.X $X.X

year the XX% the a small large gross in in XXXX, compared gross in compared to profit was increase the to from XX% in XXXX, in dropping Again, work despite XX% increase XXXX. only a to $XX.X mix total XXXX, resulted which million XX gross revenue, [Ph]. For but in $XX.X services margin profit, million was ended

and year, were of bad costs XXXX. down travel and for expenses, year as tradeshow $X.X payroll the compared million costs $XX.X were Lower last were the pandemic, a in million benefits. SG&A in million fourth to $X.X offset $XX.X the expenses, insurance Our COVID result full and which health to G&A quarter increases in compared debt million occurred while which

Our shareholders XX,XXX quarter last to compared year's was loss attributable income the net XXX. net to of for common

to December For year. to income million compared the in the million, income prior year net was XX ended of common XXXX XXXX, $X.X attributed shareholders $X.X

in ended year million in the Our XXXX income per share and compared was zero Adjusted for $X.XX to quarter a compared basic year our $X.XX the was for share prior share income XX $X.XX year. per December the was prior in to continuing in to from XXXX. this And $X.X EBITDA full defined XXX,XXX we $X.X million compared $X.X the million operations end, adjusted compared EBITDA morning release press as year last to for was the for year.

our compared end to balance XXXX. XXX,XXX of was the million at Turning cash the sheet, $X.X to

in receivable reflecting accounts and the from current million, revenue, up were $X Our the increase segment. primarily collectively service unbilled receivables,

operations payments were liabilities million our loan the up of in current and which end. segment, Our PPP forgiven the current the not increased was service $X.X reflecting portion timing at of year

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

liabilities of be term were compared the the yet PPP is $X.X forgiven. the inclusion which term portion long primarily long Our to from million are up of loan,

PPP the due for with end terms issuance the for PNC current debt $X.X Our debt $X.X $X.X million, primary year $X.X to for PNC Bank, and the the debt, Total term and PPP the our $X.X the million million loan was excluding loan. for costs costs, lender due with due loan was issuance lender million, PNC term excluding and loan. to XXX,XXX our to primary million debt under

Our compared year working million to $X.X XXXX. was XX,XXX at capital end

Finally, Michigan flow used $X.X discontinued was $X.X related loan payments of operations provided by activities used I'll to by revolver payments our our activity. Proceeds was most provided monthly the of financing XXX,XXX, of $X.X capital was million net investing XXX,XXX was provided primarily Cash for of million; was payments million, by our loan which term Cash XXX,XXX. receipt by Cash discontinued consisting sale was loan cash spending. operations the less property. the which continuing was cash PPP the million to by summarize of operations of XXX,XXX. of $X.X former

million, a call and that payments With questions. the payments now other lease to operator, X shareholder totaling XXX,XXX. pay-off turn to net to XXX, financing our or and then loan, of costs of Our I'll over

Operator

[Operator first Instructions] from We'll question take Brous. our Howard

Your line is open.

Howard Brous

congratulate you Lou, the congratulations achieving in Pyrogenesis. let joining First and Excuse Ben, so also congratulations. of in first, else, spite Directors of revenue. on Mark, million your of Board me everything $XXX on all, me. of And COVID Ben

any first So everyone and in hopefully and firm, of as well in the everybody all, the family issues? COVID

Mark Duff

to it's no, hear good. you good from everybody's No,

the COVID zero ago. have vaccinated. which to case and several We you cases many, the now, are folks wasn't that many right getting company in months we are know, zero But

on of So that hoping we're stay to trend. top

Howard Brous

critically I several to rapidly your Mark. And Congratulations and That's issues when your glad that. one important. Good. to I'm quoting want hear announcement, from I'm issue. advancing In just announcement address today, are the we large the to market a increased have significantly be believe processing. bit enhance granular revenues, backlog Can our comment? establishing waste of for we in that more little you segment treatment potential while that share and terms

Mark Duff

one always them We're each have on our always we would upgrade our Sure, share. Howard. new -- initiatives and going our market inventories add more to in that expand and plants of capabilities

each have going So in on of we an opportunity one one facilities. our

end DOE waste and expansion rapidly. continuing the then very going classified gone desorption. more of like well, program space Now, of expand construction storage significantly DSSI our in the running program, take to this also call Florida, putting complete that the And end from have facility. what will competition. capability good waste our have with limited our have classified And a received that's increase latest give which us by capacity That more new because be we We're we very and in us thermal going kinds vacuum to specific to backlog area. of to very, program, allow at have we in a we up we running QX. this EWOC to our not yet, we should are have is on That coming that year,

we out that on Some up to have for waiting and going procurements there minor Richland. on that some have upgrades in modifications hear with several going along we

We're We can in with realizing see that, we we're waste for some seeing QX, revenue access increased at; think or quarter late tee up start But waste and I expansion several seeing along QX to an technologies. QX. altogether, real the looking sustainable waste to XXXX those with really international So on getting increased shipment receipts also also by start new the of up next the and teed front in for internationally. so. activity some end being trimmed new streams should

the But you notice shipments significant or lot a back increasing RFP activities a the about excited hasn't to we're us normal optimism treatment three proposed QX. back So give It weeks we the as last that shipments that of receipts of and know. as taken has we'd we and activities, two waste on seeing are of come side the could end It as hoped. by in just beating of house. fast waste be

Howard Brous

Can you talk XXXX? and than quarter revenue, importantly, fourth third, terms potential the in let's find general opportunities better and opportunities let's of the about financial rather

Mark Duff

be other like and positive we're doing into rolling, million with to going for processing to or fourth to holding three lot this now. receipt maybe tough year, That's going we're water two, Third a it's in and XXXX base. that receive impact quarter million we're capabilities, million good X It additional side. program existing along between forever good some and of a and different but revenue now. get water as revenue to trends we're predict is seeing XX whole system, our starting but the took on water side on And a

waste So to EWOC, a $XX XXXX. between assume million big for VTD don't and stretch is and classified think is I the the

Howard Brous

the big any that's And without opportunities that in of past, talked the we've correct? about

Mark Duff

correct. That's ways receive. to new That's just

Howard Brous

nothing the Last you? in not vein, on because you've heard but I've Have other issue. still the heard nothing same least, but [Ph]

Mark Duff

We a we have any of bad And nothing seeing quarter. the be past past of so we're day have in Yeah. heard sort quarters nothing. to thing and heard supposed kind

Howard Brous

have I Thank all yourself to in And the you. team million on congratulations, and for the that's revenue. Again, $XXX moment.

Mark Duff

appreciate I Howard thanks, it. Right

Howard Brous

Operator

question We our next will Dickerson. from Instructions] take [Operator Chuck

open. is line Your

Unidentified Analyst

you we more could work work by-product the treatment come a then for is. go do you question that translating translate that a framework also there's a whoever here do work I if reliably, treatment you with service Or service you additional here. give I then of and or alternatively opportunities? to give how detail some in work they're at the talking and say to treatable Thank some into are talk of is well. the about you to sort say my come you little if discover of you're looking that a we, wondered or satisfied waste it's say as opportunities service back so done we taking way, or mean, and situation perform the about? where have to perform. let's is to customer you you service And the they we'd that is, happened like by it Dickenson

So unfolding waste see do that how service translation into you from opportunities? treatment

Mark Duff

we what projects we, treatment. directly Chuck, and other now can normally disposal in services The does treatment, waste several on job it several of and the services site, do to have doesn't most afford ship of something case, treatment shipped uses typically can some the do landfill. worked the lot it off waste and opportunity of like we'll the the comes and nuclear packet real cut projects components, waste away everything, doesn't hospital the But for other for bidding disposal and the services really services. review of we're you right discriminator doing not that well. facilities full a treatment to In out into facility of a doesn't way opportunity. one the include we require so do do the know the services, waste our as money. inefficiencies, the waste the words, that, processing. our doing field, the that processed if included save the jobs, there's we're got ourselves has extensive is that question, that and largest we and answer able you're we it That's field for may any to are put on types that waste process. disposal, your or have ship people, company, it's it dismantlement we we're be the say service typically so overall. the direct of It with and it an several of but we doing can do large that Harvard always have Other jobs in that’s minimize in and the optimize that we're engineers, we our in bids volume should time, remediation we we’ll shipping the may the waste the professionals necessary, require If or of I to treatment, But have shipment packaging, when the the treatment, work do, the for in integral resulted You rid because of to packs the what have go to in we're the jobs And a manage our, directly Washington, example, management remediation did Richland,

Unidentified Analyst

Or COVID? Okay, you workforce this great. what already The that the your across June, only had has to at? the look things vaccinated well? as sort up have at of of you was, end all other have percent key maybe ramping is is that May to for expected come then. say are question the of sense to or more base is of client a field it academic is of you look item your do been And start I all as And vaccination in

vaccinated? maybe not kind important, So that just question really to a curiosity but already percent it's that's what of is as a

Mark Duff

third But be know, done plants been we as just as guessing I it I of I'm the good, here. XX% running pulled, about I've no at around pulling know, about. But folks I'd said idea a about that And have what to know, just our have the guessing was I have higher have here, we have I It's at a not have company see than where so population. far office, not or point administrative that. that do afraid. we're In is plan we percentage do of you much an our You where East house. folks just we office yet. And Tennessee, on are. the XX as no we my some side idea in talking

Unidentified Analyst

Okay, waste may the level, have trend I back correlation, that would to in but guess but although this up, a trend to bit a you to little some -- people see are started starting starting That being to receipts not normalized month. vaccinated. up

Mark Duff

correct. That's would, as I I would well. assume that

Unidentified Analyst

Okay, thank you.

Mark Duff

Thanks.

Operator

questions we have further this appears It time. no at

Mark Duff

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

As the we I you. outlook the for Thank full further shareholders mentioned remain our bullish of We year. updates as on earlier, and developments appreciate to the support providing continued forward look unfold.

Operator

today's participation. This for you your does conclude program. Thank

You may disconnect at any time.

Perma-Fix Environmental Services (PESI) 29 Mar 212020 Q4 Earnings call transcript