PESI - Earnings call transcript Q4 2021 | Perma-Fix Environmental Services, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Perma-Fix Environmental Services Year-End Conference Call. [Operator Instructions] It's now my pleasure to turn the floor over to your host, David Waldman, Investor Relations. Sir, the floor is yours.

David Waldman

Thank you, and good morning, everyone, and welcome to Perma-Fix Environmental Services fourth quarter and year-end 2021 conference call.

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

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

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

Mark Duff

with revenues our disappointed XXXX. over down and XXXX performance morning. about Obviously, financial David, in Thanks, right. we're XX% good with All

results, we to a in per a productive built we operationally. to these year confident XXXX, positive was XXXX growth in in through were which Despite foundation we we're $X.XX. coming prior weakness and able and in year. very momentum of of this 'XX, earnings the a for solid achieved COVID, growth in believe developed into However, result variants. secure a share COVID growth in of be the revenues strong will XXXX January XXXX the revenue resulted we as experienced year again latest continued The We

for through our trending year However, demand for despite XXXX, period evidence these X% in opportunities the challenges, this increased uptick XX% XXXX of to continued and compared the Based increased fourth approximately quarter last remain Segment, the revenue, pent-up the revenues in which of by QX. in same seen highly Treatment here Treatment Segment has year. up on outlook and encouraged which we waste of has March the

high-profile projects Within were million XXXX, the currently and several we overall. strategic Services Nevertheless, well that added actions significant resulted very of are delayed -- were the and awards. contract procurement Segment, which revenue COVID-XX, $XX impact in we in awarded reflecting performing was

our result, $XX well approximately XXXX. in backlog project a As our for increased million, performance which bodes to

actively among We've now several delayed been tasks a -- projects new operation of We work related begin all anticipate within While been coming were good of and some to will the that end this been have provides task markets the limited with larger large approved on open announced of also services later competition they've up. on in potential and new to government companies also contracts this ceilings bidding that be part group projects quarter. teams sense as funding scope us new number they've the IDIQ QX the of provide of likely type QX. contracts of new for year. on budgets. within us QX, federal these select will orders the and a task mobilized We've nuclear or bid awarding DOE towards MNO us of that been IDIQs include the full in multi-award a selected opportunities order ability with These

Some many revenue of by competence are size relying years. represent in DOE, to these core in a increase quite and, will for our projects considerable if selected substantial with sustainable

projects resume important treatment new in have to services the starts these been both to procured slower that be 'XX. Although backlog waste commercial has federal it's project note than delays of and government much resulted normal in to sector operations, substantial in

the XXXX addition, last treatment incremental do allocates recently Energy's in We through surges other funding often Management. will year incremental within doesn't an support experience, additional Environmental waste this big in as of of million with $XXX campaigns approved portion of towards Department this over bill In and federal increased funding Office spending treatment, believe projects funding budget a XXXX. significant past to budgets. on the government year's these Based hiring we see waste like going increase

meaningful pandemic the the XXXX sites. different not impact we utilized that and was carryover to due to anticipate addition budget, In XXXX from to the

believe see we're demand result And these as there's capitalize on And XXXX see budget that signs a forward. starting as we there's a significant significant and of improvement us clear result, improvement. a a already solid to earlier, to backlog reason factors, will this over As that that it's going expect good I of mentioned a to federal a of to 'XX.

in hand-for-tank In very low-level disposal opportunities about Initiative, mission. addition the disposition Bed to the project, as to off-site DOE the excited we're business, known of Test our related support base waste also

Bed shipment stated our of extraction Richmond, by facility waste in summer tank Initiative are this gallons our demonstration funds I on can." Test Northwest will the state the Perma-Fix have as late waste site Hanford now occur quote, DOE's feasibly for of "I The facility went transportation stated, of include to to as to second comments, public the to like certainly of application and comments, Once should we DOE early As and XXXX. our priority for the and, and have in certainly that equipment. In is the order execute of a shipment of way, needed TBI the Washington. Waste the quote, recently removal if would installation for officials phase available manager sent the an State Washington. X,XXX as again, in He the TBI Washington has stated we we pull can to as a another Department state there have program, application." from similar see, both levels priority. I become In up process at federal Ecology the will that Nuclear "We resources to you Management regulator the both and

We Bed demonstration In on recently the of DOE and will effectiveness includes $X Initiative visibility underscore remain able of recently the in bill in note XXXX, and for cost underscores despite savings, or the also addition, the for to supplement and carbon solutions our of enhancing important we the capabilities as DOE's in our despite future provides maintain Congress. Hanford, core the -- This in at an additional I'm allocated XXXX. the current we challenges, addition, vitrification law -- confident the and steps the our to we both shortages. facility spending enacted new specifically support proud current the million industry-wide which dramatic technology, by reduction that a were core that It's of and a to a prepare capacity Test mission. is grounding DOE's which especially our DF based substantial fact while that technology the the to by strategy, emissions, is labor took number for at also by workforce personnel. immediate our the federal

a as are large and in we supporting up projects that now ability As ongoing the to that field. quickly well the procurements bidding to we're right as result, have ramp support

a and in the market within waste technology support expanded to so, a completed also of our hot We with oil a upgrades potential, deployment includes begin government will next technology is inventory week system, and of and strong start-up of ongoing April, facility addition treat early as This or federal the well deployments new and industry. which our April, vacuum with the desorption both in gas streams solid Treatment likely as backlog and number waste phase a revenue thermal our currently to Segment.

carryover up, last projects benefit a that new spending and in starting the finally we're see -- following a to begun the to improved been has while, built wrap to normalization return budgets have foundation, announcing we've for government we've we a from been quite solid from the and expect pandemic. year. So hold that The federal on and

solid balance XXXX. improvement highly in in as Given balance on XX, than we're XXXX project seeing even to And $X take have have advantage March though built challenging visibility the with to in cash the much the right and a of a continue and scalable we million now quarters. was more XXXX, a and are and our waste of internally, second year, took demand, great and we a increasing better or and we December a facilities third treatments with through capabilities maintained of infrastructure backlog we've position invest pent-up steps sheet in our

outlook the who call As Ben? are the by the a I'll pandemic in Ben, result, encouraged On before detail. turn the very we results look more and over momentum for discuss the forward to we resuming financial XXXX. will had that, to

Ben Naccarato

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

$XX.X million in COVID-XX, over in levels. scheduling did as to last from X in for our feel XX.X%. from delays decrease delays or effects continue the an a year, but due revenue funding entirely our quarter to year's revenues drop drop continuing Treatment government to see shipments of million, in Segment to we reasons of projects the of of million Offsetting was customer million The delays $XX.X the of compared million, $XX.X was quarter revenue $X.X Our we startup Segment increase in pre-pandemic this the total fourth large in operations fourth of increases the in related the Services was with prior resulting $XX.X compared and decisions. decrease

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

in pre-pandemic $XX.X in work Segment for quarter, The part though awards contributed the As latter the receipts, government delays well below getting in year the awarded starting in dropped was with the levels the segment quarter, waste the year, as modest Again, Treatment back delays with projects used to. was the drop the project the the the decrease encountered employees with or main the to the we're of in driver the of the delays new the revenue. to our receipts large up to in due XX.X%. Segment by as contract fourth waste the revenue X this revenue early increase kept in as of the quarter Services part a by completion as million as

our to Turning gross profit.

-- million margin compared the $X.X related attributable did gross to segments improved XXXX, profit in gross prior to with $XX.X the drop came Our most Segment gross quarter due increase both the of XXXX. again million Segment, compared Services the From $X.X $X.X the low in partial revenue. year-end revenue gross This lower the was to discussed. $X.X year. drop was million million for for profitability year-end the have from was an over for Segment in accounting and improve a in of profit drop Treatment in Services gross $X.X to the Segment revenues, with The while million, work profit Treatment in in profit lower to of offset the the as profit The XXXX. did variants from million

$X.X legal quarter the while $XX.X million last million to trade million were the related costs the general was compared Our sale of in full to related marketing $XX.X for year in fees quarter, resulted the and in of year, fourth XXXX. higher $X.X subsidiary. our to to compared increase SG&A SG&A medical and In shows, consulting travel quarter million the from expenses the

as new well expenses. there legal other For and to the expenses, employee expenses general higher were year, increases in related and administrative proposal fees general and bid projects as

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

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

share in continuing prior a in this quarter, release, to $X.X year, a And $X.X $XXX,XXX. as million the of And of share of sheet the the year the X $X.XX ended basic last income adjusted million few from $X.XX loss breakeven income XX, million our compared income a for to the press to for our of to December Adjusted or compared Our EBITDA year defined quarter XXXX, $X.X per $X.XX. operations loss for was income compared EBITDA of morning's was per year. was items. for share in A XXXX. loss was balance compared

For the year, compared XXXX. at cash of the balance was to $X.X million million $X.X end

reflected primarily were unbilled the in Our million, Services drop current Segment. revenue, which collectively the down in and $X.X receivable accounts

current portion Services and which million, the PPP $X forgiven of payments; Our forgiveness operations of timing in liabilities reflecting the loan, our in of 'XX. down were Segment; decreased was our current

million Our was million in waste $X.X the XXXX. at $X.X to year-ended backlog facilities compared treatment

million, year debt working with Our loan. long-term XXXX. excluding $X.X from was $X.X of forgiveness lender, at our primary the Bank. primarily the liabilities long-term the to $X.X were million the the costs of million to $X.X And of down PPP due for million issuance most Total debt million, portion compared of $X.X our was the end capital PNC

million, the was by of cash of used discontinued provided the cash Cash financing less our activity $XXX,XXX. capital used of other net spending. operator was $X.X $X.X investing of million, to $X.X call and cash And to monthly back $X.X the Cash raise by activities turn million. With used loan that, operations operations, questions. our was operating million, financing Finally, payments our from consisting from term the payments primarily $XXX,XXX equity was I'll term by $XXX,XXX. for

Operator

is question coming with Brous Wellington Shields. First Instructions] Howard [Operator from

Howard Brous

the that what listening a onwards. telling in a expect good to budget comments, Is is and comment and us the quarter comments? you second fair with you're Mark, to out In sum basically, very your there, up place your bids

Mark Duff

March, was things as in a But the Howard. didn't sponsored particularly, do, performing. sales we of federal They're of new to say for making their things offices our said. sales also you kind bids is, a their and waste people maintain themselves just some of of that traction, we reflection We to look back more bidding, get folks lot is and -- bidding we've other how We've which sales problems, government year. likely it's really over now direct just some treatment added get country and bit are us. number It our seeing that a metrics slowest the couple a just employees was which needed I But of couple pretty it's starting will on to increase part increase to throughout are 'XX go seen make the way QX in gradual win from pretty too, opportunities, always back March month the those good a normalcy up normal, months. from which Howard, linear treatment, on sales. a I efficiency thing, of to a bids it, and a discuss them waste at is about in But this to -- little X upcoming good. over and our understand solve XX basically if waste receipts the accessible but our procurement December in XX and to month process, of in XX of what's is really. technical month is D.C., is

side on of things the treatment look I very So house. going the really encouraged that where by at -- are

a starting had to of and year, there's negotiated. in ones that impact of the task procurements along the because we're line, for as some And their which in I is Oak waste orders well, over our other in. QX, really are Hanford other major through technology. as particularly now, getting those cleanup in lot treatment, backlog and mentioned, they cases last but in through well One the weren't all procedures management some has too, in particularly DOE where Those things a the new point the of to over our VTD QX. see and gone QX that's big good several shipping waste that contracts Idaho Ridge. here one and a Plateau coming project technology, as attributable some transition, new changing gone have All form and of they're last

promising very So look it does point. this at

Howard Brous

finally Let is My the XX sure room, we year. BWXT And understanding, a elephant me correct statement? in by about was this me and in won -- this can I'm a the think I'm the October $XX they of or which contract. correct, and main resolution upon everybody the wants Is to years, that -- if will lost The not will, contract. that expand if call TBI that? see is contract, billion, calendar correct and talk you you sometime the the on

Mark Duff

of amount award. the back start-up billion a tank the but Yes. $XX Law, anticipated did years. took that completely XX we the include operation pull that that And only The again not added funding to did years redo The procurement of and They to operations the include in or DOE also is significant operations several the procurement. DF a participate over will in DF which to contract procurement, scope of Law.

they be they're now, anticipating your month, or So orals seem I award and had that. our way. answer They their and to right to in on month is they track for QX, this on are say, should question, what last earlier

So bidders hopefully, that all important to as schedule. That stick the be other well. and us will they to

an it's So exciting exciting procurement, contract.

Howard Brous

my BWXT It's bid contract, one understanding is your that whomever also correct and other understanding? which rebidding that that Is my there on correct? is is prime is. of the Is

Mark Duff

intelligence it's can't procurement really the procurement talk because so sensitive this I point, or Yes, Yes. Howard. about at on

Howard Brous

Okay.

TCR Perma-Fix there an talk them size, about done million They've in that let's about a waste? put tank CZM gallons, that treat And removal. X opportunity correct? So cleats. to and the Is for they is

Mark Duff

through which to my in there think very their they that which a they it when gets scheduled million of to has our successful can that get -- it like I are X to so DOE but we'd facility don't to for Well, capability. so up, I TSCA, of to for new going strategy, is backlog they is currently be want is DOE speak DF fired run quite run aware until gallons been Law or understanding continue regards 'XX. to December the think And so. the and run DOE continuing for up

hopefully, months waste TBI them so And at But position So demonstrating that so. allow say, the waste We're or and continue and addressed it keep yet. grounding to at value of can in the has a that to off-site TSCR that TBI getting treat we've and with they'll rolling an the the treat reduce has the tanks. hopeful DOE level that been TSCA operational another continue technology, that and risk waste let's XX that they to not technology discussed. that pump look see they'll and the

Howard Brous

Last question on the TBI.

For discussion the the you do It's Is XXX,XXX, you this XXX,XXX X,XXX gallons. do When the gallons? successful. or opportunity of purposes, event? XXX,XXX a XXXX have treating

Mark Duff

Howard. likely, some which of because and XXX,XXX Most XXX,XXX viewed which between there's going difficult to where have things on somewhere is happen they That's is Do kind They could XXX,XXX handle process their how what Phase we WIR, a is gallons and lot question they're operational, X,XXX is gallons. regulatory this that X, be of ongoing. right flexibility -- and waste call that That's a either now the getting between in -- to the want an depending right from documents have W-I-R we now? comments back EA.

process comments between based there, how it be of depending on make on those they X I those happen a have And -- and what see fast that. that So and they'll on both probably or in the will phases finished. think the to depends determination

that, we'd So it's that would in early think come certainly in but worst-case 'XX. scenario, hard a to say,

Howard Brous

last facility with of Margins? be you'll operation? Westinghouse nuclear details as kind England, joint in to capacity in you What when more a bit My little us give can question. volume? venture The

Mark Duff

that can't been reason we've Yes. time. too working a that, tied We procurement you quite the I information can't is to much give that for on some -- is

be that. in it's procurement million And should to speculative. in a have of Because Richland. we up so and and that it's with at doing irrespective a I and the facility between XX based currently really year very component we've totally we're like tied there's to about in for market, a is used facility able Howard, and we're to But is market in just much. the million which contingent Europe that revenue, technology, the and procurement, much can't that deploying and both Europe, feet very, on $XX we're talk to productive in what We're But and too opening $XX anticipating very do stages. deploying planning support Asia. what years efficient markets successful And a really there, the really

of got less are So those which XX% basically size a or over very, go. volume, storage markets about will quantities stable there it to This reduction very waste hand it treat risk. waste, place with footprint, allow in back enormous technology safety to us large. There's no has risk, that's them to and put we're environmental and back. less much much get And that it to and going risk

So really value there. high

able great a well, Westinghouse, working it's pretty I'm be waste seed Or even confident England. our all goes years, as X will to if with if within we have We treating the we're and And on speak. relationship not, we awarded. XX in design be months hopefully, is to procurement

Operator

question Aaron next Breakout with Investors. Warwick from coming The is

Aaron Warwick

As or the expected talk to only think about about happy about asked disappointing we on thing based hear Howard future opportunities. which wanted addition The was ask in I to you but other I situation, results, outlook. noted, the what about really to international all

before. some You've is those the just status what of I'm there. mentioned wondering

of Germany Italy mentioned right a status you Specifically, last you addition call. interest now? big the influx those in the What's and the U.K. of to on and noted

Mark Duff

exciting Really over Germany. shipment there. we're an getting our us Aaron, second program, for now, Right from

some got waste your for very But spreadsheet the and wastes. specific export really talk to to probably where this question, going point. we in X to That answer different continue. XX will go that actually streams happen import that next XXX,XXX us awarded, bit streams that. XX along that's compared and thing months. a of and transportation, well. streams have to not this. can't through those why be between about moving procured have These with waste next other from Europe. at we're XX And working that months we a England, we're permitting has XX because the getting specifically to NRC see action really of treatment with million countries we're to again, is the the Northwest X that's so. we that's and I range or in waste little of over XX one lot to We're goes that cost It's hurting as of and that other So -- which a reason much with And or this everything but to anticipating

So shipping even so $X costs on you for a commercially the treatment take waste Europe. land any available of market is would not a of XX,XXX though lot XXX,XXX double opportunities for seeing that from answer fact question, that of we're million to to very sea, going on in well, But typical based there's set your or the shipment.

excuse As well. probably extremely are keep know, or benefit other the pay the storage it's are feasible some of at as we higher. starting to me, waste to they're treat in down economically that reactors storage -- you high ramping And look storage now simply Shipping you costs. if costs than more on cost that and have. high in much There and the places Germany to it getting curve, become already

this market. in, facility So partner about facility Springfield, said the we're trending, England. has in that it. well. pretty that They knows at fabricate as keeps long be fuel very putting the as that Westinghouse going we're They're to excited

strong and know very as they extremely market have the well. so And contracts nuclear well

are where excited going. pretty we're things about So

Aaron Warwick

for clarify, I million, locations? those XX when say the answer, just Good. not project, to in talking think I And know the but a you're to I of think total XXX,XXX you right,

Mark Duff

project. per correct, That's

Aaron Warwick

too final the think just question, to is guess, having Okay. A about I backlog.

million. as will I What guess? define -- terms What think I long of you work backlog? it you you said to how that, through in you $XX think do take

Mark Duff

Backlog's defined funded that's Services contracts. Segment as contract work under for the Yes. and

So of from Most do from X a to high August, September. those confidence. range were months awarded very degree of now. they XX in months And

would up months. President last are orders than the with of They're Norfolk how bit our for this way may change X little ahead on the in Naval would Princeton it is on. the one's X Services. great one's projects. Both million The that. majority year and going at Daniel very schedule, But out depends There happy. client Vice ones or or longest next be so who's toured and since accelerate that XX went into I be And projects the more just a that And million will last there the be the XX extremely can days we all of -- year. Shipyard well. the the biggest teams we -- have these ship Labarta, Executive the X and right bump

accelerate those So this of really are looking hope and get and how good, to we're margins our can happy proceeding we with that those are most that revenue year.

Operator

Investment Partners. The next question with is coming Taylor ARS from Ross

Ross Taylor

what ship Norfolk, looks out bit the about of they talked down year like next over the substantial of were to a that the above XX, looking the you've but last you Navy little vessels decommissioned calls, you're decommissioning this more color? the wants accelerate actually XX call a what, It being Could ago. Navy, with mentioned projecting at in You year give X coming couple opportunity on years? vessels the us

color both out of could segment business So opportunity you potential us give the that flow the of company? on the and of

Mark Duff

acceleration work. in the have that not may some days. came line, of out That's the why question, the funding Norfolk recently of we you what's real surprisingly -- next. an but and article the The great was Ross. last And X Navy seen it was about enough, a were as on bottom And clear

with with maintenance. lot with is at obviously, as everything nuclear, procured along the that well to the priorities, see going out. Increased X the in. dealing the when ship are are to understand or we could was procurement ships XX the and difficult X of be those months. in next it's as between very of as think is costs the fabrication situation to I as country procurement space, far number is Navy what The goes -- in X but a come other dramatic the shipyard

and lot So of they're able detail. they juggling procurement weren't provide a that to strategy,

happening, tell that also will there's facilities in likely you X what's there's be XXXX 'XX we for I nuclear a So will procured can are position for. X coming, as couple be but those the can't be say, at a great X government in that of or well FY that we'll exactly ships of the shipyard on. -- that And we'll other be participating that

to there, the a There's have like commercial team a of how that. do people other contractors lot We kind work. ground seasoned good ground not that know such the on this of on

So with good the following have, have that schedule certainly by the quarters. we're end a But in But have coming the be predict shot that we X QX, pretty we'll what's up. difficult of we'll it's subcontracts confident our work. to better at going to next a

Ross Taylor

potential And every the own the ship has unique characteristics you its value per talk can about like. and what is? ship I know

at? So of normal if we I in about think is are wouldn't fashion, you ship, a what that looking anything but kind like it opportunity there's there revenue -- think

Mark Duff

lot that they between them. these for can aircraft doing of do now, They going one that's will of that care so is the It or we speculating, contamination. those likely where to of in smallest say reason both go whatever a Yes, $XXX I it's $XX well want and and very million each. million I somewhere depends feet, carriers an in are It's level there, disposition answer million, we're the $XXX of -- there's million and on of feet that removal decontamination be I the probably know, so they ships million to difficult. the the to the to either -- what large jobs. is but million future, tender can And ships And $XXX do million. really be you between XXX a big Enterprise. a which generally it's think be the to with and $XX tell those things $XX lot they X will is I think is most or between, over all want Ross, I'd with and question, billion $XX ship have a And $X do in the themselves XXX ship so near of What Nimitz fall, and range subs, each. that I beams. XX-foot took

Ross Taylor

to But you, done? they get they represent do effectively substantial and for opportunity have

Mark Duff

They do.

Shipyard, ever Navy, all they fascinating drive, all which and you out of drive maintain just been around, for there. see the space. just is Norfolk in to running where you'll and fleets our docks they're you've That's tour a Naval dry the docks If of all the

space get they make these for refurbishing there contaminated vessels. on new and their So need out, room building and taking which ones, are move their and focus especially ships up fleet to -- the new resources

really it's type there guys DOE a are and be It that for workforce. So our to into of ties really And decontamination and great enjoying work. us. very the business well are thrilled

Ross Taylor

Good. quarter. good That's Okay. it for next the luck backlog and putting by the more me into system

I would to be hear. think great that

Mark Duff

Thanks, Ross.

Operator

next, Up we Ryan Capital Hamilton Management. have Dempsey Morgan with

Ryan Hamilton

guess jump real in I I'll quick.

what the about in that maybe you? comments give size that you those Can March. getting in some process, are of contracts? activity competitors bidding what on us as are at? as maybe people participating you're far you're of alongside number the seeing And bidding And touched You that

Mark Duff

Yes. streams are than small more DOE like they That's things a from million. to that even Ryan, bidding waste in vary couple that. regards stream the size, a There's of some XX,XXX to we're difficult XXX,XXX to question, with waste

difficult I because a be I to range. would difficult might of make describe be. on into surcharges it predict really be, that where the what that they those things numbers the things March value to value there's other have from and total go So lot mentioned that would and this XX of -- don't bids that

typically definitely answer one, But cheaper say us. Energy to is and some you, not bidders, tell Each can to at offer this than one don't I X that different of bidders have against. going treatment the I'm I'm -- to X to that are or able point. going everything. And we companies be They things Solutions, Unitek have have of alternatives one disposal. Veolia. WCS. that compete Each X those we So we direct win or

direct able seldom to If very of we'll you waste, disposal win can be that.

get don't typically bid need just are that into What be them However, we clients. and where value dispose them them, that's make better a you money. we to that's where can going if to position some bid our dispose we technology ones of directly can our of type usually because to those they

sites there clients, been our are pandemic. haven't more only getting indicator clients spending out that's of during but on our to focus it's So the the really expanding not waste activity also they and our relationships, an much that of in off regards market and our their evaluating how

it's that's of an really So of more indicator that. --

call, numbers what be So give next an to answer to in I'll you those regards time have we like. Ryan, look next our able

Ryan Hamilton

Sure. back What to bidding historically. expecting years, you how on out of is couple over it maybe of like? touch looks how just Or last that it Is could norms? looking Is does historically, And the see? something it you're that it look activity?

Mark Duff

QX, of to answer, much would those I say speculate I general I'm have probably double. normal. say A me. in higher I'd for be because Ryan, don't that's going front than would that numbers it's

or as of X X we're far typically week. the year goes, doing rest As bids X to the a

And month. would a a XX be -- so reasonable it's month

So we for month a really March. That's March. in had the month XX of good

Ryan Hamilton

That's great. when mind? that there completed? it, all overseas business about send you is talking the you're it's Are there something new And planning in missed Is else might to plan? the have facility. I Or

Mark Duff

No.

about talking that Westinghouse what talking you're You're facility, Ryan? the is about,

Ryan Hamilton

Yes. Yes, sir.

Mark Duff

for that Westinghouse would them be clients. on we're teaming The with Yes. facility European-Asian just

with competing U.S. very So not specifically it's

will arrangement better-served markets an good there. and our part comment. be definitely a not is with as So it's it's question And because Westinghouse ship important of U.S. here over

Ryan Hamilton

everything to I'm is if asking to everything may I'm the go going keep in overseas sorry, you're overseas, U.S.? inland, that the I doing misworded. here obviously have

Mark Duff

Yes.

build of moving our is or if again, to on Springfield, be what at exactly not building but like we're forward much, number going we're What proposing it's Northwest. Okay. Perma-Fix things, a and to quickly, facility contingent in it quite very is

and capabilities through We that come we have do some over So there here. Westinghouse don't in other be be would included in run that may waste England, that technology that some here that facility. not will

here may XX% But it that be would say XX%, facility. of some of for it, I of most come So we Westinghouse that to technologies other go would the that there some that provide. over

Operator

have next, we Instructions] Brown], private [John investor. Up [Operator

Unidentified Analyst

Yes, I questions. have two

for it First -- of $XX guess but you're have with document it. is about of million, on is competitors, -- all, Or just one the million and It us has period that? public it over worth -- years, about you're your there's you little of something give on you color that has that? document. still? contract a it. and I some your it. a name talk Is is it worth on $XX clarify a you Can Can that competing a name public

Mark Duff

are John. MATOC Sure, we a MATOCs to what hesitant I'm lot spend talking call task or order contracts. about of contracts. time IDIQ very multi-award

a So awardees. There's to ceiling the come those rebid these without of that run out reflect that officers core a of it's contracting limit the number contracts usually a ceilings of engineers, those can on them. MATOCs through having and

So have the each QX. we It the I X -- been X in bottom for was last the of quarter. were X may in MATOCs But end line, winning last MATOCs, successful region. think the it

I'm region the we're that of. company aware X every that only So in won

up U.S. and into region in Northeast, them Central the Pacific and each for Southeast, Coast X West. So break

put million worth orders depending task at those and scope and just vendors basically out, between start $XX There's that on they as through a So prequalified so the work MATOCs region, use be task where a was a project. a the X will or your ceiling of somewhere of task each running just those awardees. group X order to they can awardees, order simply can XX

or and X, should fixed quick. go price You and sometimes make or turn in around last then award a say, a you -- week quick bid, week a or I a quick

in got capabilities. to got has They've They've everyone prequalified. go. they need ready place everything been already and So the

we those the the needed projects new upgrades the we're is for and office core the So X facilities reason are throughout to because bases at goes demolition infrastructure military have military new particularly, the through put those bases services in infrastructure. the And Huntsville with It engineers. at excited demolition U.S. for about

past done in backlog owned each expect do we Northeast the large and of and these one a a task -- year of of those or We've So would the we've very $X And performing X the on for well. supported million to typically, we million orders. those, $X South. we've

We for they have do were people us, to and very great a that successful. of team

use on other resolution. then when passed. there's MATOCs So the those federal budget this and a are all stymied not based on being based can't COVID you In words, continued

You have to stop.

mid-summer, we're orders or And they'll a we'll rolling task fixed those our and these on under now few get both things by optimistic hopefully, belt. are over, have So that those. of

Unidentified Analyst

Okay.

lot I field a The size. and companies, of other question had compete a in with you're small was rather you in different

and so your merged -- taken -- more forth? could resources and that over I'm how saw leverage amount leverage. merger some So more we you more have business? thinking you you you if with limited had much much that But someone merged just a -- with of How one be wondering or -- how you of what increase recently could more I'm about with more or give were by would competitive And if your a competitors. effective much

Mark Duff

merging John. that's what you're It pretty question, the terms Well, depends and a tough with are. on who

rad focus the really on to most together, companies capability is strong our we with that -- And that have right and the rheological like the waste of market don't a along management. have we big niche, have. We market, real

problems. of type with senior benefit set business companies our Having And We we our we're physicists being to of waste really in close of have know Most have -- a assets a are We each and larger to along this that, work facilities have big services small certified could said solve group, part not mention of how our health lot X we obviously team. engineers anywhere the kind these that and those of that. on guys cornerstone to from of the don't aren't all do of that company. asides.

some have have but rely We on we it. bit we little -- work, small a don't business

or we were now, of able to for where calls, years. and sweet very that these getting healthy of view a ourselves And as that X on to to the $XXX again, But do XXXX. We million kind get that in is we'd financially on big really from could our in level. view I'm a for as many well really space. of we So us our we to And in as I've that X merger. sure be said right back spot benefit company we at focus goal shareholders competitive type next

Unidentified Analyst

I Yes. can had a you and mean, you got the a last -- If rid it within little of like you of poison a serves memory that. bit? couple years, me, seemed pill, couple of that then clarify

Mark Duff

future Board what did The put management along the in with We our that our renew brighter by it. was Board, was. poison felt very our much team than stock strongly did. was our pill not because place We price

that to couple So make type had put place takeover that Based could consider get we on of wanted sure we the to need until we situations, in to that. position we legal to saw that would the a reach years out. be to are those within our and able level certainty of revenue profitability and we that saw revenues we that that provide of still realize

Unidentified Analyst

right making But you a don't bid somebody company? anything for your have now that place for would prevent in

Mark Duff

We that's correct. do No, not.

Operator

private Landis], investor. Next, we have [Howard

Unidentified Analyst

of press to in a risk noted -- material, up a with There's your the conditions, additional see reserves? of AR builder certain revenues. on or risk is and a in contracts of marked nonstandard terms reference build AR that write-offs revenue XXX there questions. do over and release Two Is coming you days

Mark Duff

let We'll Naccarato Howard, let I'll address Ben Ben? that. --

Ben Naccarato

comfortable order will be some receivables. don't But we're our et had look We and of at been of don't. we we the -- we receivables. all of right -- the that believe one No, with related, Howard. it's slow -- a what there's closely particularly Yes, is know, you And now change if written our slow pretty outstanding we've a anything process rise no, as -- There contracts, to that's customer material look couple AR with gave cetera. off.

Unidentified Analyst

you the are Okay. you? to with? And properly mostly that some Or do contracts out there have behind evaluated, weren't deal still are that they

Ben Naccarato

in that -- when expertise is us. market in put really certain place it this was And a control we is an They're really that issue. cap. internal something It an just June behind Yes. we was hit

hoped was financials and intact material infrastructure than and our changes labor, we the labor the But so nothing slower nothing And anything, little and than issue it it was an the because and it it. aggregate more now, would a intact had on of we're getting be. expertise

So we're and year. this comfortable. it remediate we'll It's behind us,

Operator

The next [Stephen question Private is from coming Fan], Investor.

Unidentified Analyst

hear. Okay. With backlog, I regard million $XX the didn't to

how of much and of much Service Treatment? is how So that that is

Mark Duff

It's XXX% Services, Steve.

Unidentified Analyst

tough, Okay. okay, All so -- and the right. you In right. The -- times have you've been All right. guys always survived all have as survived.

thoughts out how business? of your of my competition of much One going is is

Mark Duff

'XX. We suffered. should had is That's ramp important ones But difficult and ended of through back. them, everyone projects specifics. X- public, this period. has I our for And that million steps -- the me, too -- us not a the are have X on waste at facilities a dramatically. to pandemic, talk taken they're we were everyone done to have contracts competitors to good and The know frequently a Stephen. lunches to But them. to had question, closed several -- and that in XX without of has into companies are to We same million that point conversations because excuse in much say. our year that -- did year, the have those don't to well know replace We that find which that know our I ourselves suffered receipts that know the some competitors I we competitors the stability ability competitors maintain about to backlog several numbers services don't have us. able then if for with want XX-year as I do for all early regards

a your had I that business normally. with Companies question, well out competitors, particularly be ago, going gained close are know degree. that position were no people, to we've of treatment going specifically, with they've couple of So one most lost facilities the a gotten exception closing. They've that a they that were -- anyone think of But sustainable pretty to X compete where time. if our couple are period weaker. space, of years do And maybe companies that from answer through Key the personnel. lost know waste the are that we ones I don't period. certain we to the have is in ones that To of

Unidentified Analyst

-- With it the medical in you're of today, out Okay. says business. regard announcement the

Or just what X.X million? I -- So that's that that right down you is interpreting -- there? I'm mean, is a wrote

Mark Duff

to that? Ben, address do you want

Ben Naccarato

ask we sorry, I'm can again?

Unidentified Analyst

are you In of the it said medical the area. announcement out today,

statements we're So to regard the done? in Is going is You've see it? final medical? number that the to with that financial

Ben Naccarato

a is Yes. the than most -- immaterial cleanup -- off Yes. the for part the with segment immaterial Other few for dollars books.

Unidentified Analyst

All right.

was while that. about some accounting something So that functional didn't got understand Ben, some that. like announcement, you, there in What occurred or statement I in was that I problems also the about?

Ben Naccarato

with caller. That's earlier an

asked material Howard was it earlier think a weakness. I about

because attest have In to So rules. the heard past, Steve, as our of this cap, June, And we had a you've and new Sarbanes-Oxley have that they requirement of they... market to what means, that what now they did to our the internal -- auditors attest to not SOx, controls. have

Unidentified Analyst

no, no. That's All cool. right. No,

is year, -- that Okay. your accounts stopped, which had along? which receivable? an that the coming is how during what's collecting Canada announcement sometime you and the on Or Are ballooning deal, you that?

Ben Naccarato

resolved. it It's get that's the one. to effectively discussions And customer moving contract over. along. Yes. The the with It's is

end AR. lot it it to done behind where paperwork log -- the a is these work negotiation discussions, back of up what's yes, and becomes is. jam. reconciliations. just it's the everyone's and the And documentation, usually that's behind big is so The satisfaction, usually of all And biggest lot forth, contracts it is but A that

Unidentified Analyst

back guess I going I'm right. Mark. All to

the Let's talk TBI. about All right.

the I've years anything before happen. was environmental the And thing that this coming last are where an listening X So had there How story. last thing sitting I study -- be supposedly, is been could here -- to along?

Mark Duff

these it, balls in Yes. Stephen, court. are is The stats of DOE's

had And an Reprocessing called Act, had a regards them to also the to Incidental get included report public the the in environmental under fact is that do so which which Environmental completed. covers Waste that offsite. they basically this DOE has waste to Report, National to policy, assessment They sending conduct not comment, Policy and they're high-level NEPA

in be to documents those completed, from and this process decision. state. incorporating they of these had both a the when both comments. then do them and are for a and to currently addressing And of to is public work -- these had comments, permit get both their they the get into their DOE alternatives So done, have And

And and So they comment process should their months right don't in now, months. I finishing that's know a making this in where or but management they're there's where what those priority want is. on month the working I speak hopefully, out that's process. next be both don't kind that, it article were of the a I or periods is, the as track exactly few that summer. And applying both on documents. them, then they're quoted, is the permit the and for to have something of regulator said, recent that a were from for of schedule up DOE they're Public ago, stating they're to it.

Steve. pretty as that's far this as know at I much the what point, status So

Unidentified Analyst

All right. Okay.

of that be it Energy national, Northwest is where clogged And twice dysfunctional, was that I will they've technedium. up their arguments waste. last the So at potentially vitrification plant the in year. the It a -- iodine create over will think I reading, out particularly Alliance, lot and had with literature the are

it's can't taken so. it a -- this just fathom what seriously don't me, hard being not know more as supporting just I you I is how is is maybe So least half a thing. answer -- of but seems at being you're said

quo something boondoggle just a it statement. as answer So like we're a when that's we? the a building person seems technical And work. may won't you I where that. But are here, guess I status then where which to like put continues, reading not it's

Mark Duff

Yes.

So I address will that.

employee and years dealing at political bigger challenges strategy of and picture number than with for always for. do they of with Department a to pushing And much That's for of they lot have to understand Energy -- the all -- federal be has things part kinds of we a and have DOE's same certainly all a And other we been strategy. I Our was be of they're issues been respect and and have that. a we've time.

of is advantages fit other environment. see that and that What things have a that about to the and a They made they the And tax as dramatically their to carbon overall be a technology, and to know company trying as excited the what patient been and payer There's doesn't expensive. and supplement are sure can hopefully, less performance comfortable It so as the the program, optimize Law DF making our back program as with are. briefings. technology lot we that we far we the is strategy know site do. of We've it. we're they'll sitting we've part their being with we value They dollars and data -- how footprint. together a this that we of mission strategy. So they're generate numerous of

see that these we to talked and goes. about we've keep far -- next year, the we'll able we'll that by able been that is have because value bottom tough So demonstrate go as phase same get the everything performance you hopefully, jobs. everything line to and to end be But nuts of the think And that guys as approach we we'll I as have this we've or feel all do. here

Unidentified Analyst

running Mark, maybe was great That answer. a political for office. should be you

I X So more last got questions. -- my

Okay.

never my the vitrification presuming that, is process. generated and So I technedium, iodine pronounce by on the statement can

you can So Can so, guys that? that's handle if that? you treat

Mark Duff

off as waste the -- mentioned comes that TSCR, Brous treat before. the can was mentioned We Howard

of TSCR the nothing tank. through a iodine of non-exchange liquid that It and technical, the does too has So coming the -- separate out system. the that's out cesium will a

resin in the that will that. So capture there

And take extraction that other system, we the we waste any types waste. for TSCR, that without do it issues So at the all of can from all. time

not yes, a it's So problem.

Unidentified Analyst

All on $XX right. contract. that are you question is billion Last

a as that correct? it You consortium. on of are Is bidding part

Mark Duff

Let me just that say, we are procurement. in participating

is the So -- team. on yes, that we're

Unidentified Analyst

hope tough fathom, and shake to of it's listened you guys news It's a All and And world. to hard proud better head, you're I I'm here. Okay. come. many right. providing of my been the you're just and to just a it's lot and -- nights times and It's

Mark Duff

a along going And all the your support, that. appreciate with things Steve. real COVID hurdle of been I We that appreciate has but other on, are

Operator

remarks. to for back like to turn management floor closing I'd the

Mark Duff

in like conference to right. quarter you, fourth All Thank thank our everyone right. I'd John. call. and for year-end All participating

As the outlook next we quarter. you. to our remain in again Thank XXXX said, we extremely in confident talking forward business and for look

Operator

call. This and you, conclude conference gentlemen. Thank does ladies today's

a You participation. day. time, may at your disconnect and you phone wonderful your lines have this Thank for

Perma-Fix Environmental Services (PESI) 31 Mar 222021 Q4 Earnings call transcript