PESI - Earnings call transcript Q1 2022 | Perma-Fix Environmental Services, Inc.

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Operator

Good afternoon, ladies and gentlemen and welcome to the Perma-Fix Environmental Services First Quarter 2022 Conference Call. [Operator Instructions] It is 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 first quarter 2022 conference call.

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

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

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

Mark Duff

both conference call, for in Thanks, our we and with related January we’re year-end in March Services see That while saw weakness of things we experience we the our continued said, expectations much started in which a up discussed as our morning. significant production to and second good segments. the Treatment disappointing, quarter, in and start the quarter. and Alright. at in pandemic recent David delays February the and to increase Results in very line to has continued the pick

– several these While revenues are expect important commenced within mostly Services and point. the operational this Segment, the recently Segment quarter. to contribute at excuse we will projects improved second Servicing that profitability me, turn, fully In the we projects in

of of Services anticipate a growth awards, these the our latest we segment As in result second in alone. project revenues roughly quarter XX%

As which we bodes project services the sit balance here the million $XX is backlog of approximately year. for well our today,

anticipate third we we in will our contribute addition, that the growth to revenue be new further federal quarters second procuring projects government In and forward. the will going expect

among As budget. provide new to I large multi-award IDIQ approved companies. select on us the on task mentioned federal on up with order include orders markets opened group or the last several bid a that, ceilings and These call, we’ve funding ability been task the contracts contracts selective of

of anticipate We competition task going opportunities awarding in these the potential government provide, we begin good and related work of and scope the a the QX limited With have the forward. QX. that will sense they orders

larger and recurring or flows larger can announced one on much revenues If we’re later We DOE contribute teams be projects year. will some bidding of service these this of on to multiyear are projects. cash also meaningful on begin within projects, that as more part they successful

to new pandemic. As I the task orders in been have has slow government procure stated federal the the due past, to

we steady on is information gone very expect the to recent capacity as strong look demand demand in way. this Treatment two for we’re requests we the be seeing capitalizing our Within bidding for quarters. also forward not evident waste projects away. treatment opportunity There in in from and clients. to increases our these We’ve a meaningful next Segment, quotes numerous over significant that have regarding received However, opportunities pent-up a

which services In has treatment new addition, base to several we’ve the shipments QX our for commercial expanded our utility revenue several broadened has represent likely will in years. that sector in resulted market and sustainable

well again achieved be and realized market momentum desorption the thermal gas new increases XXXX the We bidding These growth, to oil federal COVID typically as demand have and overall, for strong for million year and Also, core which testing importance and expansion vacuum component and increased projects a our incremental and completed waste capabilities profitability Overall, $XXX funding align a foundation as our within DOE’s result Spending which waste the the we’re new to allocates mission treatment Federal Office of treatment and budgets. activities, waste see increased over to and of utilities reiterating we’ve as of prior capabilities generated and worth solid which confident continue with by industry. we’ve a will start-up DOE’s of our be our of built it’s an support system important will system competencies. Bill, Environmental other prior Management. funding improved the of

DOE disposal of also waste of off-site by Test We known the Initiative, support Tank also mission. the TBI, Bed in encouraged as project remain the Hanford the disposition highly low-level or outlook

it direct only in of transportation holds waste Richland, in this perspective subsequent The also Washington vitrification by that gallons Funded they enter with Federal vitrification the known current project DFLAW DOE and The the late or into to include a treatment an and Northwest draft agreement that the extraction includes the The plant a to anticipated located Development by in in and conduct FFRDC Act analysis of is under December to all is facility the facility plant TBI constructing constraint Authorization of and and to can scheduled to waste X for evaluate for the To mission further as Center, waste appears was be that current by to to in waste concluded in national this of implement the National this was directed approaches shipment low of that developed second view phase its mobilization in DF put Defense plant currently the site. only the feed tank for enough waste to off-site waste billion process. NDAA low-activity treatment Research waste flexible ‘XX. supplemental capability That’s and strategy. for with the technically multiple and X,XXX and you to percentage DOE strategy to if holds the project million that what Perma-Fix, the laboratories assumed Perma-Fix to to waste direct grout the billion savings to perfect, parallel to Perma-Fix DOE occur potential under maintains the new Even DOE save plant currently much our QX. low-activity of report, scheduled the are low-activity to of called addition of report address would begin technology in quote, viable, The or states of According with this tank construction see grouting the comes a operations I and revenue FFRDC XX high-level it’s the of disposal its provide the feed the Hanford, at the vitrification without the the in completion. vitrification regards significant vicinity alternative potentially overall should a the of scenarios potential – modest implementation and grouting budget solidification to just impact that $XX and gallons Hanford $XX B. affordable facility. expeditiously constraints, assumed off-site as report low-activity quote, implant treatment as project of pathways

is can DOE would on Internet, and along executive this prepared multi-university the and National Laboratory, National the invite along Laboratories, summarized Analyses River Sandia The I for Northwest National consortium Alamos the you by Defense Savannah Parsons. that a team Laboratory So report Laboratory, Institute look with this to report pretty led with National well. Los you the Pacific see and is summary up

As in for test $X the while for includes the current call, and the mentioned line DFLAW underscores within item last bill cost federal allocated additional supplement spending approach grouting program initiative funding support specifically providing a recognition the enacted commercial U.S. Congress to savings our This I and the on XXXX. the visibility Hanford bed significant recently reductions mission. million to schedule

backlog us demand of to up, to significant So going that solid that federal budget it’s expect we capitalize there’s forward. wrap and on clear a to

we our of significant will XXXX of I ‘XX. this we performance. are confident, over result, a in earlier, As And the improvement balance March as already seeing signs remain mentioned improvement see

invest to and our capabilities in continue facilities. We

maintained a we’ve and highly as have balance scalable well. We infrastructure, solid sheet

have are a are in seeing We for the year. turnaround we much and visibility better balance the currently already – of QX the

more we’re ultimately pandemic to federal the the support. Ben? our it we the exceed in to maintained positioned expansion that, performance detail. and prior budget increased I’ll financial we now waste capability, the result, had profitability a well believe discuss bidding resume Ben, turn As results through activities, and treatment to and significantly On who over will

Ben Naccarato

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

revenue delays due Our Delays on in for and government in our decrease reasons, The was because from with waste Services up. impact staff. and our from or quarter compared customers the revenue projects drop basically first million segments of the for COVID of And COVID new quarter, related replace while $XX.X this a contracts is start $XX.X due see shipments of continue in million our total waste consumer occurred last to to quarter year. million, – a we funding $X.X also decrease was to to slow completed first counted was consistent revenue to that months customer early COVID administrative and revenue our the our were to operations treatment that’s continuing of on year’s entirely first in to of as – the XX.X%. were the

relates Much the of consistent cost That’s to million or sales cost and XX.X%, million sold, of to reduction projects. million total of the from quarter a goods amount of and decrease decline reduced lower year. $XX.X in goods is in that compared comes $XX.X in labor, travel Turning cost the in $X.X to of first sold of was which Services expenses the Segment for our revenue. prior subcontract

did expenses materials see labor to we plant increased and utilities. due higher While

gross reduction gross Segment. $X.X in profit result the in plant to $XXX,XXX for was costs the compared approximately and in higher the Treatment revenue lower Services the Our and cost was million the $X.X of of XXXX. million labor profit quarter the in The Segment

expenses consulting $X.X relates $XXX,XXX stock to This of the Our first group higher quarter of lower quarter expenses proposals. million increase offset service by option G&A $X.X lower year. bid audit in million the to outside the in and were costs compared for costs, sales to related last

Our million. quarter for last year’s attributable of net to compared to shareholders million net loss common the is $X.X $X.X loss

in the with start-up As large the our had Segment delays results. Services the on of projects profit our in biggest the impact gross

per $X.XX. loss per for compared share to a basic quarter share of Our was loss year the last $X.XX

from the $XXX,XXX EBITDA compared continuing in to morning’s we – a million press $X.X our adjusted XXX for – release, of Our a operations this in as last quarter, year. loss defined was of loss

$X.X the to Turning but was were project is indicator Unbilled year when due an also cash revenue in sheet down on billing, with of balance timing lower quarter. compared the million. to to million $X.X $X.X sheet, end, million. the of balance comparing receivables This

of million and timing work. $X.X Our is again down result of payments current project and the were reduced liabilities

down at million slightly in March Our the the $X.X year of backlog from end and end of million, was from the XXXX. of down the $X.X March also at $X.X million

exclude to and Our total debt at issuance is costs, $XXX,XXX owed $XXX,XXX debt Bank. of excludes was – this which quarter end PNC

I’ll summarize cash. Finally,

was our now that, by Our for of financing operations will $XXX,XXX. ops And investing turn cash to payments With term call was loan operator, representative about continuing payments our capital questions. used the and $XXX,XXX Cash about Cash of and $XXX,XXX of $XX,XXX. spending. of over $XXX,XXX. by I operations that’s used used lease on primarily $XXX,XXX cash provided was for discontinued was continuing finance

Operator

question Thank you. is And coming Howard from the Wellington [Operator first with Shields. Instructions] Brous

Your line is open.

Howard Brous

you, hope I Thank you and your Mark Lou. are all well families and well. are

Mark Duff

as doing you well. Howard. Thanks, are Hope

Howard Brous

Thank you kindly.

to let’s FFRDC. So, the get

finally Department So is, low-level the appropriate waste? agreement permits, Washington you that for in Energy can of given do the to are confirm grouting State of question

Mark Duff

with of because for in support make the I Howard, supportive. plant. alternatives that numerous request lot available a The And to any things are believe permit to shipping regulators Yes, recently times TBI or for and commented the from waste of will necessary have that different any tanks the the support associated to review do it’s they both resources initiative. they’re DOE not interesting DFLAW

example, much waste on-site disposed treatment are except vitrification. any For be not supportive to of pretty of they for

is So disposal specifically outside of – of it the off-site WCS plan state that this Texas. again, approach. our ship grout to are Washington, way supportive TBI, they disposal and in to for it’s commercial of And

As TBI, but it’s distracted support through – have process, Assessment wear making moving by by a the they been treatment, document to the far – concerned, also as supportive the NEPA as from as is TBI with sensitive to through supplement again, the getting to are not forward late of and – hopefully, regulatory or summer. is the Environmental system very DFLAW supportive. DOE the It DFLAW, sure

Howard Brous

a XXXX, XXX,XXX we XXX,XXX me, to Secondly, second stand on talking test. beyond the do Where you’re excuse of test that? – in sometime let’s gallons. the X,XXX-gallon to get third And about

Mark Duff

on changing which the now, Howard, the and in removing and been that removal tanks regard. is tank. TSCR, right pretreatment double another along Well, program lot’s a tank-side the system, The the sewerage waste waste this to cell cesium in it putting doing has way from

grouting XXX,XXX XXX,XXX for sure think done long-term or waste our that are not where for final I the phase on they So us to or is perfect gallons. But exactly. for production. we’ve either far, I’m conduct

do it is that that pump. operation will at to production view. that our So of of And definition, least us hopeful we grouting to value demonstrate the ship are to great grouting It X,XXX will a waste. hopefully, that’s little value a they continuing the TSCR candidate and see be the DOE And the would simpler. treating are disposing make and And and that by that much gallons in continue approach. from over off-site level waste

Howard Brous

But help about other talk it necessary Please to it’s for Hanford we me what’s off-site, people your long from understand would can do off-site it? take? that site. when grouting. So how them to do And

Mark Duff

Yes.

about located tanks. the actual Our facility is XX miles from

very So at it it’s Hanford of We reservation do a the what makes shipment types us, time possible the Hanford waste the to easy do of Hanford waste for edge now. that all the right different do site. we from and which all to

and We’re the now. only right ones established permits that have the facility

So take themselves the would would resources and would it be could to depending thing be then somewhere get do between we X commercially off-site and the years permits this need have developed. XX to state that have – capabilities estimating, to on type of the the

and So mod, be to about a level permit to a we have to program. very minor with these capabilities minor and right X the cost now very grouting do efficiently some production and do reduced at current could get XXX,XXX gallons from we million a year upgrades that at

Howard Brous

Where – to starts you Grouting, almost your do ability process of the one, If of result and gallons, plant, a course. XXXX. to; as gallons a the treat I X think one-for-one. contract; the they in basically will of start-up effluent two, the be are of million they going it? So that vitrification in get is enough there word million have stand

Mark Duff

is a like is number off streams that would start-up the plan. it you There of once starts. come effluent the in Yes. ‘XX different December DFLAW Again, said, of current

We a line that contract for support provide with We are DOE. in them. to have don’t to that

but gallon other come about that the that tank, from out for don’t you as that that they plant treat that is in that that a that use spoken goes soon But processing. There that be currently at solution waste are that water. one-for-one a We start other that in of be to perfect confident would as effluents of off pretty effluent to that some streams a out other pass, have they so to from Perma-Fix liquid a but some looking gallon and have we’re waste have waste come would And grouting, will produce a process. position we contract. they’ll right, or them, of about waste, it’s well for water in off we’re effluent distribution

Howard Brous

and more Basically, later. I and let question one back I’ll will – come

other to contract $XXX serves uranium along my memory a contractors, me EPA, was if territory. on from mines two million Navajo remediate Nation a awarded contract, with general That the correctly. You’re

contract starting? One, when and that on you much So you of receive how two time thirdly, do period over of will questions. plan what

Mark Duff

Sure.

We in told which by mid-May. March. in we IDIQ, was pretty as wrapping have they have which mentioned a are the we I waiting of should Howard, been approved, all federal order long start now and And moving. RFPs list receiving They be the they budget are script, to were to get their task all up done slow for

protection well the is and mines. companies other there that component basically we be technology The have uranium with is as teamed one for waste is It’s And significant We of very is is our you waste to have on we the EPA, calls, manage and role big first portion talked bidders ones IDIQ, three prior our that. with – the that also have Corps sorting It’ll program, Army two notification that. Navy. Engineers pass that’s project, coming. and mentioned, that of [indiscernible] informal the the which the in hold some on radiation on but of a disposition as – significant. we’re a a as had that IDIQ advanced particularly abandoned we’ve the

IDIQ. that initial been over that. So go, we’re the know putting value that near-term mines told orders they and together task on characterized confident things Howard, are that I’ve list order, will have XX be don’t how these I that highly there is on the remember but I but we that competitive uranium underneath on on task

in good work I like there. and it out by seems know, visible of been It’s Southwest. funded be Congress, that there it’s to highly So the is a backlog going

traction program some getting up the Mexico seeing So those and cleaned get will region. out those of we areas in start hopefully, mines and Arizona that

Howard Brous

That’s done. all these Thank have. Best appreciated. I you. Much getting luck on of the things

David Waldman

Alright. Thanks, Howard.

Operator

we And a have question Instructions] [Operator Private Steven Investor. coming Fine, from

live is line Your

Steven Fine

Can me? morning. you hear Good

Mark Duff

Good morning, Steven.

Lou Centofanti

morning, Good Steven.

Steven Fine

First is million service and there question you you was $XX how is mentioned was – a treatment? is, there much said backlog, how much when

Mark Duff

Well, that’s Ben? that say – to X% that is all about or I right, services, Steven. The backlog treatment X%, want

Ben Naccarato

X.X%.

Mark Duff

point. okay at this X.X%,

Steven Fine

Alright. the you’re of Okay. by world, rest costs. Obviously, the impacted being as

bidding, are extra with costs? on your able new to So pass you

Mark Duff

the our good a our are not That’s most Steven. of because running question, – costs It’s variable are costs dramatic facility.

We’re obviously your we is containers. increases have at question, seen able answer not have overall. there all. overall, it’s some streams and less. been this in problem to waste seeing costs point pass, we at streams in been an waste margins some fuel and But trucking labor, to been on on Other But that highly are impact competitive, no our

profit Our Ben that on we CFO that treating specifically. we’re chain the maintaining – very our issues, close that planned the things to supply Ben for keeps gross tabs make had keeps gross very issues sure close profit, inflation we’re

Services the letting Ben, supportive along we haven’t point. the you to to there much impact this it’s the And been anything seen surcharges of less else labor. but mostly in mods. want On the side, us impacts way, overall to very at apply fuel several And because clients do add that? it’s have operations a real is

Ben Naccarato

the – in really, our thing fuel that otherwise, trends Yes. at trend, natural stuck product Yes. out was only our the plants. surcharges That quarter is chunk. was line costs But varies. The but good a really gas in

And to we Other our facilities, trends. on we’re times, we pass a able end – usually when that lot disposal customers. are use in Sometimes the increases don’t. to of disposal at

Steven Fine

will that cost, is factor? you there or where a that your increased – you will the now do get TBIs, relative that the be impact? Does be more a have will – not expensive cost If price set to

Mark Duff

is, are set – point, yes, either yes. Our I they price would just not at this It’s say good.

Steven Fine

correct, with the is you I’m that’s That If a And when part There awarded? answers that’s that. operation the supposed and for contract do of on the when out question. be any have to hearsay big the presuming maintenance. plant somebody you’re of plant

Mark Duff

changed it recently. about track indications for for is that in that, time obviously are Yes, believe We that can’t we a on But talk all are we are Steve, to DOEs the because an that’s frame part participating There of any procurement. announcement. it. no October reason

we’re So that’s what of this assuming kind at point.

Steven Fine

participation if right? in as is And say to your part group, able contract, that you’re the of something,

Mark Duff

Yes.

We’re team. subcontractor a critical on the

Steven Fine

tax in added to thing? It that Alright. tax... What was was the you million had $XXX $XXX relative million

Mark Duff

That’s a yes. quarter, the back NOLs. – third your that’s valuation if in reserve Yes, eliminated our you Steve, on and allowance, like remember we of kind

taxes we And one the so way other. or now book

negative we so had And a losses, effectively because tax. that’s

Steven Fine

But loss, if you’d greater there, right? have wasn’t that Yes. a

Mark Duff

Correct.

Steven Fine

find Final keep to Alright. inability I question reading is, problems you find I the Are hearing that impacted Okay. is those to having being – keep industry people. by people?

Mark Duff

We Steve. are not yet,

people. a and office we’ve because And a We do but some are little at work. hurt a and we part, not require to to most for be we’re having team-oriented turn over, us have able been work-from-home that’s the find such bit, we us company work the

in the We some question, if DOE places, labor located So the us, hasn’t is country. to significantly. been some that answer that sites people, folks has anything, the locations probably near of some But been have places in we’ve us enormously. we’re them. but we’ve replace other are impacted bad that quite been as we’re to did – it market and hasn’t lost lost impacted as there, the thing that we’ve your able supportive The hiring

go DOE and the up. few exceptions to our to we’ve fighting But seen pressure out join people able personnel we’re limited with for so at of as we budgets impact. So been contractors sites these the Hanford far, have other replace a

Steven Fine

able larger the to to people – have that to guess be is is, you up. to you’ll I So and ask – so TBI the that went you’ll to be question got scale you reasonable amount, able it progress if connected to with get

Mark Duff

that lies. we our think be can, will risk Steven, believe I not where We

far what and and in people, early and to we’ve been stable about that I we we’ve not want want that’s been And quarter. in folks think the replaced people little bit think – end recover, a we’ve that we recruiting dozen the QX on, and lost the we be more But don’t now. it to be QX and spending will our got it’s I me. to we’ve around resources we believe by of so time as able lose a – trained successful move able to

So I to TBI your a that to question, meet be see risk don’t answer as to significant goals. able

Steven Fine

thank Alright. Well, very you much.

Mark Duff

Thank Appreciate you, Steve. it.

Lou Centofanti

Steve. Thanks,

Operator

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

live Your line is

Aaron Warwick

Hi, taking guys. Thanks the call. for

Mark Duff

Good morning, Aaron.

Aaron Warwick

morning. good Hey,

guided sort the have that revenue. revenue expect you of or You generically this exceed potentially year to to pre-COVID return

Looking at the pre-COVID been numbers over your like have million. would then, it looks just $XXX

that sort So expectation the $XXX you revenue? in million be this would is that of over a year

Mark Duff

QX Well, not to basis. exceeding that a be But tracking that quarters more on well. million level Aaron, that to getting next it and we the are a a $XX towards quarter just level that goal several are quarterly very with at wins. few want we supporting looking certainly was hopefully

the should by be of exceed we to end it next Over quarters, the able two the year.

are want So be our up year. that to quarter will be point, we at by that the for this $XX that speculate we we end certainly of I position million don’t but make is the to will in QX the thinking a goal. able

Aaron Warwick

So on rate level? run of sort a

Mark Duff

Yes.

Aaron Warwick

do was of Good. look things the And and into call in mentioned on activity April? that levels you month? highest the How think, kind about it indicated, Good. continued pretty how in much Okay. had you’ve then has seen for April? I March And bidding that at, last

Mark Duff

don’t would in big a have we’ve verify like overall. that month, the mid-XXs been mid-XXs, but March pretty continued. for I XX I we has it’s It in speculate, the I I’d last have added March. was the that. bids in call number to – April. again, low But mentioned

doing So well. pretty it’s

revenues pretty or me, bids excuse Our with values bit. were increasing a of the those – the along linearly numbers

seeing up and treatment we’re activity work on making are of that of government of the waste lot the the some delays from side a commercial house. for in the the sector So DOE

in that that the month see number So will to XXs high we’re mid about continue optimistic per very on be to we RFP that, a basis.

Aaron Warwick

you, guys. Thank Appreciate Fantastic. it.

Mark Duff

Alright. Thanks, Aaron.

Operator

Godfrey from James Consulting next The Okay. is question with coming Godfrey Group.

Your live. line is

James Godfrey

gentlemen. my morning call. for Thank Good you taking

Mark Duff

morning. Good

James Godfrey

to I here. in get So, the discussion wanted greater follow-up just prior detail to some of

things, week in imperative, Test see so at And as actually, the Bed at Initiative Test To is there come the that that’s of QX, Weapons that the two-day part week, next phase. clearly of Bed And that of of Monitor in three-day Initiative One and test. huge X,XXX by and actually Hanford from that last a the late say that, Hanford the with – hopefully, meeting you were course, on a let’s we the tri-party, treatment it’s ideas. second suggested speakers gallons this hinting a works – was was deal indicated three-day certainly the or Complex State Washington. could

you and what validating out of and appreciate worth. it’s kind that’s I represented, So, that just that put whatever there for

hurdle event for Bed the going that Test State gravel with of of know going continue are going to gets from Washington. Is next forward is And phase of necessary us permit the to or how to I Initiative? to over that encompassing we of a kind have permit huge final be to that the the want one going is there to State Washington the Now, be?

Mark Duff

to Then But RD&D apply a XX Well, could to RD&D for referring X,XXX that are permit with the to it’s that RD&D the incidental days question, through grant permit. approved. in where approved you being along to reprocessing it states is RD&D that they permit. want any James. permit they a is the just waste State ship in comes saying EA waste complicated DOE less underneath the go after RD&D additional gallons is report with nutshell, the applies And the their than is permit. the the permit should for be and permit. the what ship

drafted to So, already your have already They most part request. the permit over we ready permit, question, it. the typically certainly with and it’s and go onerous written the have for to a answer application – not

schedule, So, I goal that go to in the next we should turning understanding is the to say. see expect that weeks state and few QX least or in my time around any at meet now

a we the too shipped debate So, there to the change can they of at it the leaving and with but things – the end permit. that bad. QX. they out is ship the want depending And some of has expect good are along rate, for it at there, on is that wouldn’t There be what things work any and us to But DOE the even waste don’t and state on us need decide way, directly. couple to waste – the that they we it TSCR looks generated,

James Godfrey

coming been And but in so Well, delayed everything, encouraging. course, long Fantastic. that’s very of COVID in. It’s that’s exciting.

of hadn’t shipped. potentially at you a receiving And do return just that were expectation? effect stockpiling government anything much waste were some you how only a this see had far that as there as to surge of that some waste built-up not your a that point, lot delays, there that and we have to stacked out had general also in would that levels, waste been guidance you might been you Is normal but at Speaking that represented of COVID see? up still is point, hopeful one you the

Mark Duff

they will activities begin that and conference and or couple meeting that years they of ship. that their is are other to really We generators that cleanup are inventories there haven’t got, hard larger it’s several the last know they that be Phoenix from they March with a to going waste of us things what understand waste that the at for moving. over have of to what through spreadsheets shipped James, in accumulated have

for bids of some in larger put waste several streams. have those We

approved. far now – good Ridge they We on which DOE as here and a for through what priorities primes as with in the the Mexico. negotiating their them we got those next some with last at are get that’s They are waiting – to are budget have their system specific and in Oak would with big are funded week ones. current met We on [indiscernible] a working as facility be New well, are list

on what direct we there is list task don’t know in out else. So, that something because priorities are What we could to seen what versus we versus it do speculate been order, much address they are year. do disposal which shares typically have know the funded a their are and can’t than we ones longer

we do to to they have the with So, their these of us demand, convey good it’s each with waste funding. keep pent-up for a and difficult sites and moving managers got surplus and to meet say. know frequently there backlogs is that But we they

we optimistic. So, are

James Godfrey

Great.

mean high-margin all just forward, not just only So, but revenue to become overall is I business going but have a as also that’s at we we kind important going the treatment do increasing know. business more the survived mix critical see of side, looking on services and we

certainly encouraging. Thank that’s I And your answer. Mark. So, you, appreciate

far Disposition the as Hanford contract. $XX Tank billion Integrated As

location gets small a on the group potential for huge facility if since in we that’s are contract billion especially fall umbrella. Hanford opened our just at door $XX business surge that activity integrated, be We embedded that though, are “meaningful fine, as under and a as bidding must by business in don’t still this And bid, the we even businesses. doesn’t – done their work” in small win we

Mark Duff

umbrella. at James. in a be big do the We off under tank lose their correct, absolutely, answer team, as we on farms well. plants, expect or supporting that process that that to of several facility DFLAW Hanford way is are win do You the come on streams and fall waste And

and heavily field is meet that as with program continuing who significant have on incumbent as well activities. contractor do milestones to rolling, the is the So, start-up and see been we opportunity, we as DFLAW other involved

look years. the streams got understanding think good what waste in like would coming we of I have a this

the will big plant those very or that programs a Perma-Fix answer be our we it Northwest So, goes get rolling. impact when win confident are absolutely, to lose,

James Godfrey

Fantastic.

incubated platforms much might products COVID those to or above in starting to and work have those Just where phase? show forward incubation. of on business end the you multiple been think I various you light lines? And of initiatives, us million an at some able questions, have of hopefully about kind kick Give initiatives” “transformative couple And how our if were have talked those in accomplish stages $XX past, of we the actually are define as they platform successful. streams, you million other the a tunnel going through of revenue in beyond you of $XX update this like established some some or

Mark Duff

program. initiatives our good very it’s a include our has James, of a our couple Navy moved Yes. commercial international quickly. – there The International those question. is program, and program

in awarded been have there. contract waste a do treatment over We to framework UK services

it’s we UK had in very announcement out likely plant that have the in of end RFP Italy. be seen would support team. plant range, That’s another of the ago As that support may you waste anticipated on Italy project. in in for of $XX timeframe, to competitors, us project March we July, out the And project awarded weeks million this came a in years. with The Westinghouse UK would an of project to and a the an three be year. It’s and the a arrangement out been put together consider come two going many that Italy big by the due large new in building

program that So, making is progress.

and shipments. different and We companies Germany continue to with Slovakia work for in the UK

them things well. but one getting leader revised, in slowed in job is we Two that bit to months. of from the waste - So, done to six in little new reactors other well Ukraine, a different going really have successful launched there, great. decommissioning and in a involved a treatment in our me, been It’s we has the recently moving, last comes have world. world, a have going going who addition been little TVA for that I not and Things shortage in well. mentioned, still bit international activity taken the I significant. the pick is some containers very side, all on but based of the commercial but up. down fronts expect work UK, are The the back excuse hold the international on as is of the that, He commercial sales side, work very But the That’s team commercial to we commercially. familiar great mentioned some program the as decommissioned been be have slated has and a with which things

working couple Naval Shipyard is call quickly, then one at our moving excited a So, with us. going are project is Navy, where we about ahead there it. for and ship And of can Norfolk the the other firms the well very that [indiscernible], lead once they are very we

demolition also supportive decommissioning a an building Shipyard of have We programs a QX similar very Naval – at Norfolk to are those getting outstanding with be excuse ships decommissioning Navy type moving which of That – increases get our backlog and with build. large significant vessels, just subs clients, rating me, the work. just the up will want building funding that of we with from a finished to project ended – and for of ones very support in the forward and in they

ones just some a as that announced those, we the have ones nuclear that will play And been several of have in. well recently

so seeing that forward have on forward and a branch also are primary to these impact And we other in forward. that of a we an right this And kind participating initiatives rapidly expansion. we now that summer, our of seeing are But number a are look all as move those of moving are hopefully. smaller ones

James Godfrey

final – We a their a under that. platform of encountered, issues. minor of that and standard” in own a attacked interest are doing little gets Hanford, promoting at were who because safety very they ago couple one have kind and of let’s there everything situation our folks face is that political bit questioning while it vitrification then And Great. strictly done “gold have we difficult instances

one terms terms that just experiences, we controls us sure did. It place, the forward, that hell job there emphasizing kind safety. I where that’s safe safety, am of we if are a What be we hold operation. reassure concerned a the head really the – thing that as of those our to we anything of And from as we one in that we learned really do So, stand far in out going do high. seems of could in management of better are running

just understanding. these everyone. my stand And got arms And platform minor around where of on we those little forward, have situations. safety completely folks reassure speak our that’s kind going about we So, our happen to little situations with a that bit

Mark Duff

safety successful issues. are sensitive very Yes. daily Vice that look have that’s the not basis biggest our when probably we if we James, on And be at one And fact we of a with we to will and risks. our two and team, of side, management Lombardo Grondin significant addressing with and Executive Andrew their Presidents implementing for culture. revising spend services, a the treatment time amount of our the went Richard our safety teams

we just sense, in give that’s averages a the have below good year. doing, year, a huge way And you a the are way. one type entire work kind national this of we of for had record recordable So really far

had there that’s and We have care has this and of, past. actions in any again. – have we damages both those has no We to some this corrective And there in either. minor the And key was not in cases, learned sure put property taken make fires part. been we happen the releases, from put been don’t

has important from sure goals. bid safety to very our maintain those we train learn things. constantly So, we when to DOE and are make strict we that safety standards

within have as we are to located. operations, our our regulated sure regulators that to are wherever And those and standards. communities safe well maintained we be We have with make we

to always needs the done believe we are can It the have we improving well program. proud be, very safety And incidence everything well. recordables. our for as rates but are of We target – be is all it years, last on and better. So, over very we time X we our zero are

think, question, hopefully, James. So, that I answers your

James Godfrey

It they independent very that it’s coming some attempting it platforms have from very like different from certainly to – are promote. And isn’t relative to think creditors does. people the you was lopsided that evaluators. I have in It it’s coming had,

because concerned, we have is man-hour, are think put not see a As confident exemplary up there our far Hanford, with I incident probably comparison going be am quite interesting as an that to against that at right it per record. contractors safety numbers I would other toe-to-toe record that

one area take seen do be and So, in of dollars this, headed tens mix to direction work forward you. right of to down best really going better can to safe any appreciate we with would that where forward, and at have especially how you positively. need really future trough seriously seems it. the and to think the revenues headed how I of the thank pay you luck. buckle illustrate to Hanford, it differentiate continue to the huge me right billions dividends my of of that, wish all looking With are business opportunities direction happy is I’m further the in I And ourselves I and and assessment, we we

Mark Duff

Thank you, James.

Operator

now turn remarks. back to would for closing management the to I like floor

Mark Duff

for confident thank the shareholders in and participating call. as business, support to Alright. further for unfold. our we continued Thank developments providing you. We conference everyone of on our our updates forward to look outlook appreciate extremely I like would the and remain first quarter

Operator

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

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

Perma-Fix Environmental Services (PESI) 9 May 222022 Q1 Earnings call transcript