PESI - Earnings call 3 2023 | Perma-Fix Environmental Services, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Perma-Fix Third Quarter 2023 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host from Investor Relations, David Waldman. The floor is yours.

Klea Theoharis

Thank you, and good morning, everyone. Services XXXX Environmental Call. Perma-Fix to Third Conference Quarter Welcome

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

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

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

Mark Duff

We morning. versus another in evidenced million revenue an All by right. $XX.X year. million for XX.X% the quarter last as achieved solid $XX.X and Thanks, good increase same period David, to

In addition margin and to XX.X% from increased gross increased profit XX.X%. growth, by XX.X% to revenue our gross

we segments. of of third new several granted for growth XXXX. quarter $XXX,XXX Importantly, this income the of net $X.X commencement And in earlier achieved opportunities growth million EBITDA XXXX. reflects approximately support into provide and in year of both the the backlog to revenue The projects

on from COVID-XX. improved also previously of We productivity the delayed certain that projects longer effects been had

project services strong and client meet expected exceed to good goals or Our continue performance margins leadership to relations. due and

in solid contributed unusual generated revenue we versus achieved the year-over-year business XXXX. we not had for segments. even it customer Unfortunately, delays decline services quarter our to stronger this second not growth, is in would slight a our have been and treatment of While result and in temporary our sequential

significant 'XX revenue These generate wind have fourth offset in commenced, improved 'XX. awards projects to will that for we contribute which will would heading the believe these However, down into expected are other fourth of quarter and and since quarter. and results projects, to the

Fall the environmental the remediation million including ArmaCorp our awards material $XX our Fixed leverage the a storage with characterization, and new core joint Within realized segment, The the disposition contract LLC houses Solutions, management. Engineers for venture awards, we competencies, site. of Services waste X-year and several by Enviro District remediation including at of Buffalo Niaga of

visibility within with These bids will to large Armor the Within with steady decommissioning U.S. procurements within several increased from initiatives, industrial third potential. opportunities our from along for several Treatment bidding and increased Navy in DOE waste steady and commercial included in engineer supporting anticipated overall, both sector, projects U.S. government opportunities benefiting we've during This strengthen ahead, services the addition segment waste segment, international including shipments have These and our of projects with commercial our Looking sales we're sectors. sustainable teaming projects revenue next included XXXX. our the backlog further waste from quarter, awards receipts a backlog improvement and our experienced the throughout year. programs. cleanup

award. work see contracts, existing submitted segments are receipts in increase in waiting both bids We waste to an expect improvement contracts still from and ongoing and new in for that project

and strategy for segments. have revenues in third our several opportunities growth year significantly have quarter long-term potential enhance new list throughout to to We next the in backlog the continued the implement XXXX, target both our our our including that within

member on site We addition, projects as continue announced align in a are Joint and any that be the and projects will align projects the which represent increases our award team including awarded contract well these $X billion mission large or sustainable management. revenue support our by with to participate the referred delays be will both some day. And competencies. radiological size. to in We're we these operations as DOE, some await quarter. DOE Research core these of strategic anticipate growth to Council very innovations and Despite hopeful OSM quite JRC on Italy. more waste If we of requirements, or successful, would by significant announcements, as project protection will as one with track, potential of these are in these large selected completely In this strengths initiatives we in are considerable awards remain

Europe. the JSC by Perma-Fix of In next several existing announced project XXXX. treatment the in combined markets RD&D DOE TBI currently opportunities in smaller of and fourth IDIQ was for demonstration. the beginning to Department will to begin estimated which Washington in technologies of Germany, the of Perma-Fix Croatia the and permit as feed other what revenue in contracts we the our -- U.K. be and support than Europe, currently to preferred of These of generate the a the we dollars refer from XX treatment vitrification TBI, -- or slower been plan, annual second program awaiting the through continues reducing addition, the as Grouting of tens initiative, of of tanks actions. to of receipts begin done Hanford. we project disposition in several also grounded well will expect offset pace -- program will direct over waste focus the The 'XX. from focus recognized held a projects the including the which sustained to other of taxpayer which DF to tank anticipated we'll range, to in providing Hanford the II following regulator, X,XXX Phase from Hanford although state testbed regulators, few be is carbon for a quarter. in low-activity Ecology, of waste expansion to will of the permit the application support our same law quarters, for in as eliminating submittal we're technology, initiative, supplement approval late of The million move continue the has to forward to quarter is emission as means on a several the cleanup TBI which grounding know the last waste in billions as as gallons continually at $XX anticipated waste dollars to progress a the saving current DOE the mission, to million in which strategy from realized based $XX time, continues We're gallons low-level is be The at the stored the the the months. million Washington At RDD extract Tank allow schedules DOE

waste regional or option tank -- ongoing over will of schedule the cost, half delay state second out up include month permit, gallons defined the grounding the local to untreated maintains and of official to permit the is followed public fitted facility 'XX NEPA Northwest of ability grading schedule, approval, these well alone. in important of for It's of Perma-Fix gallons, out our grounding of Richmond, at safely to or for grew as while disposal, which with other in remain X,XXX and be permitted waste the XX,XXX which or is ship environmental million to now as which options expected we by review dramatically in wear to and fix vitrication our as now. only waste well expect risk today X and Permian documents. comment and Northwest compliantly on expand capabilities to versus offers Given an the in by facility extraction to to Washington, the Perma-Fix annually that the reducing is state risk compared treatment note a the the recent reset application, the assessment gallons higher a which

the in growth of facility operations. continues facility about signed vitrification the the mentioned about start-up effluent regards start-up the site. strategy from critical the DFL services DFL of to the the years provide streams tank for at the DOE reports Perma-Fix a local first of will which component from to DFW on the XX, treat Another Hanford, XX our waste In and XX% systems, decision facility least Northwest supporting coming melters at Perma-Fix DFL record on waste of the volume I to January which hinges for in optimistic We of progress. remain

currently not be has scheduled delays this DOE in the remain is cubic late frame. steps waste by XXXX estimated which before several announced facility The for be annually. about While X,XXX that meters commissioning, is DOE time further produced at would start-up to

of plant itself. to be startup We would at facility expect begin vitrification the the upon Perma-Fix that received

activities in facilities, offering pre-COVID to the plants In an mirror as than to be in have to As past would this begun our half Florida production double our broader beginning few combined treatment time. the beginning past, and several times DSSI this been 'XX. for treatment will pricing underway our labor our regards rearview the facility budget performance in capabilities the I've a months, and have At in and Eastern upgrade expansion of waste mentioned point impacts at realize of which basis. the our annual result of we in the goals haven't Tennessee, on since seen in plants the of and we second more Washington have expect implemented that we volume are all

We've facilities. and our growth Importantly, our built in highly a and capabilities we to a of foundation continue scalable solid infrastructure. invest

to expect from segment our within margins flows As the increase predictable we segment. Treatment Services incremental revenues, our high to benefit of cash we with continue

to ability way. in we're win to focused maximize near-term stability we backlog, heavily the and our to in on probabilities the the develop 'XX sales awarded for highly for by as to confident encouraged prior teams maintain the pandemic that contracts strategic and growth to to quarters. remain of So margins 'XX productivity and up, and and we our base remain realize continued based segments growing outlook growth market both the We're optimize we expand procurements. business Overall, wrap next our cost few along over pipeline important increasing we a will and number optimistic ongoing the remainder reducing experienced our the our be on expected market of

call more to in results on turn So the financial will note, Ben, over that who detail. I'll Ben? discuss the

Ben Naccarato

Mark. you, Thank

of million, current revenue in million and improvement one the The project Year-to-date volume, XX.X%. at projects additional our total The Services a revenues our lower $X.X revenue both million, our higher revenue through large million by prior started up an on Treatment from increased revenue to new segment or million. work. Treatment $X.X segment $XX.X based productivity $X.X that the revenue third higher XX.X%. by by quarter was compared improved from average in Our both Services third our $XX.X segments come segment this increased came $X.X on has at million while improvement And for improved operations from quarter our $X.X year's from Again, September on volumes, of increase by segment projects XX, last quarter. continuing year waste as our primarily the increased segments. on price. $XX.X primarily million revenue though was That's from or million increased of

profit of up both gross $X.X up million projects. as compared $X.X to the increase our increased gross profit Our part $X.X improvement of the a mix $XXX,XXX the for -- gross as in quarter million our was as reduction approximately profit in segment on facilities. segment profitability well to improved Treatment compared million from as where $X.X was million Offsetting was came gross million in fixed well to this revenue in $X profit costs increased revenue at due was The Services from XXXX.

September $X.X gross million both its million Again, million, increased segment segment on profit ended improved and projects, by our volume. Service prior months on X as segments the by XX, our the while compared to the gross revenue $X For million the in $XX.X primarily improved in profit year. was higher in increased Treatment higher productivity $X.X

Our for other third for legal costs with in quarter consistent offset which is year. and audit third-party by costs million, service fees G&A Increased the were quarter $X.X savings were labor providers. last and

XX, million, audit costs For in the were our September the were higher $XX payroll with prior service ended with outside and $XX expenses by SG&A year. offset quarter, as And months X expense. line the million again, lower in

of year's income net last the Our to $XXX,XXX net income compared for quarter was $XXX,XXX.

those earnings. net employee income want included credit However, $X.X an improved million, of I to last which you retention that remind year's

compared loss billion XX, months ended $XXX,XXX to For prior the in our year. a was net $X.X income of X September

per per share to is to at of $X.XX $X.XX defined per million in compared year. a basic per to loss income a Adjusted continuing of press loss operations, $XXX,XXX a basic year-to-date share Our per loss last million last income release, as income $X.X in from income morning's year. compared Adjusted is year. to million EBITDA this EBITDA $X.XX share of Year-to-date of $X.X share was was share compared at $X.XX compared last $X.X 'XX. we

balance Turning sheet. the to

with Our the of million, $X cash year-end at sheet -- about on with balance sits consistent X.X%. last

our revenue, cash due and accrued and payments. certain revenue the Accounts approximately up disposal Our collectively million, general receipts. $X.X and of expenses timing unbilled associated to were costs accrued increased the payable, receivable timing $X.X accounts were reflecting up contracts increased of prepaid receivables increased vendor million and with

compared approximately due contract. the year was revenue unearned to up million Our certain to $X prior mostly prepaid

million improved backlog million revenue September significantly our of of As from in million, at was unearned the year-end XX, $X.X and $XX.X $X.X September 'XX. waste and

primarily debt total costs, issuance which Our the Bank. owed quarter excluding debt was is end at $X.X million, PNC to

flow cash on activity for XXXX. Finally,

$XXX,XXX used of by was ops determine the cash discontinued financing Our our $X.X for ops provided investing continuing million, cap our represents in Cash provided of net for that was to Cash monthly spending. capital and from $XXX,XXX, continuing $X.X used cash $XXX,XXX, operations term Proceeds was million is that, options and $X.X payments the to of of $XXX,XXX. from loans loan in payments million. and call July over of in lease other debt With and of turn operator, reload million questions. related of our for received finance other receipts $XXX I'll the expenses

Operator

question Certainly. The floor coming Shields. Wellington Brous is now open for questions. [Operator from Instructions] Your is first with Howard

Howard Brous

I'm Mark Lu, all and Ben well. well you're family your as hope I

First of appreciate Thanks, all I and most that. Howard. important.

I'd OSS, and of at coming a get Croatia, contract, to when EPA what contract look uranium. another What initially a to better permitting all on it I includes mean Italy. sense sense from And about like the of you what So does over it is the -- time? believe you talked or

that, So please. with let's begin

Mark Duff

a the a a smaller range, up average. the a as the million may in bigger it little same -- in of is quarters million winning Then look for at Yes, are that those kind winning and would with $XX year $XX pull some up have pretty of procurements much situation load talk generally a in mentioned can't in company projects that provide we JSE, markets But that. our JSE's From or million opportunities, Howard. it our ITDC, the that's revenue up million out bump in plus a range. position generally, with in them, in down year, in of is, Europe. above generated sustainable that the along the is maintain of way. too a $XXX from and should repeatedly, year that in quarters. $XX couple within waste with of be a foundation a significant way a projects a revenue will you there we which we to all really situation numbers a some us The a just able way we those statistical up OSS, opens associated about really opportunities each in couple to we number us do And procurement to have base

a the per bid address larger because with that we on can't contracts it, very as that And but revenue a so it's to us components they'll we qualification valuable. the dollar into as to very far have on equally overall share, significant can is where as difficult of And financial get important, put impacts other position stability. in

Those we know. those on. we're ones. hear a waiting So have the you to are number X primary as of

to other the of several have and Arizona. through the we're at mines been November that ones to project supposed this smaller Bannuranium it for waiting middle be spring. have end in all altitude on has start engineer, extended start at, the extended the got there'll month we is EPA to up bids in in spring the that the run of August down hear informed core Was and in the We out shut will including additional have into the mine as will The us back over of November. And in because the the procured well. it it winter winter mines that

winter include out which be likely mentioned awarded is on before. bid, to which some a opportunities that QX -- the procurements. expect QX, bids the West that teams a add for and that starting long QX, project, We've to and that list DOE here bid in contracts they Valley again, see on carrier getting on which early expect the on we to be are to a enterprise, the project are several aircraft impacts, of $X QX late able IDIQ time on So that that project, traction out these large working very we're contracts large. we're of spring year several here and through some list we're we of will But through frame. to new the we billion DOE waste expecting summer finally get in next large task Those orders

continue of growth quantity they opportunities the a -- better. going win that come So the more we but should lots good very in, as that's We're everything, to we're statistical our optimistic in. come win not to

for a radiological our turning in a very the have very development energy, brought into sector way. and in in regards world, business more people. in lot group. rocks expansion high They're to I industry opportunities over the We including to well commercial respected revamped the new bigger are us in

So do overall, about very optimistic remain future. we our

While this it to still we did the near and trajectory we back wanted have we quarter that was overall, not we what momentum a the be step same get back. term. expect to take in on But

hope answers that So I your question.

Howard Brous

that, So now. that Cisco volume My and a that correct Is gallons sure how statement? gallons. in about many understanding plant. noncompliant vitrification the I'm ticker, for from is is not is understanding are right DOE XXX,XXX is the My the

Mark Duff

there's just weeks, they of in. out a other pumped the of the what tank it Tisco be is a the exactly in is about been tank That X correct press They pump to case apparently, appears planned. the past waste that statement. And the Howard, pumped that another the couple into after it as liquid contaminated worked a tank. releases and

criteria sampling tank, XXX,XXX will the for So the in, the not they've waste acceptance gallons meet stored got in roughly DFL. it

alternatives it. time on would just redo in which while they alternatives, grout that hopeful press needs they're has it. XXX,XXX understand while that in not it pump would pump I it of one tie in we'll But we're of trying mentioned another they're money at rate, see they disposing and the they And for run to situation waste the waste DFL impact it. we dispose that that the proposing evaluating of it. yet. a tank that Tisco for are value them that decision DOE again up to that -- just through -- before gallons able There's any not DFL to to other cost and plenty release does waste We're out. grew was of said obviously those made DOE a has So the

is other an So DOE it rerun opportunity hopefully, to here, an consider to this there for alternative than at point.

Howard Brous

the contract. is in go Department this is long mentioned of XX else generationally the basically it's but a XX-year not rod if Where just roughly that years, a contract. not You Energy

treat, to million You've treatment TBI, got a collectively high-level, you Vit XX gallons a did facility contracts? talking you long means X basically treated. if to waste be going million, are Perma-Fix? even this and my mimic is X X.X to And build is you're million which belief year, gallons, still TDR million Or are with this generationally gallons plant that for they low-level another the

Mark Duff

effluent DOE on comes contracts. on The has need not that planned treatment does line bottom generating out not handle is capabilities are the developed They they developing to of DFL. the

their positioning out think, for, treat on-site as DFL they're XX or the plan to treatment XX I the years of commercially comes has last So effluent building the been capabilities. that to opposed

-- has fact, Fortunately, it there's there meters would that -- that's so other Perma-Fix the what to limited X,XXX DOE was area, a mentioned, use support rod than cubic Hanford I no other really the mentioned provide perfect as about why which that year. in is the alternatives backlog, to is Northwest in capabilities very Richland in

It's different would different for It's of sizable 'XX. remain types. materials is routing. of late all different plant. a And that all we track that amount on types that are not just So come waste optimistic pretty out processing of

did degrees so got You and may turn different different they of their latest yes, to on just X melt have seen campaign, working yesterday -- liquid a as X,XXX glass, was and seems designed. it I that the press the to meta think everything be they're release, tranches melters the

any haven't They progress. slips schedule. continuing announced So they are in to make

we're anticipating, there frame. going again, late hopefully, through 'XX they'll radioactive the in have that still waste time So

Howard Brous

-- I a don't to generationally another back the I you waste in other a moment. Because call basically numbers very or come they're whether waste. because of Transuranic terms Savanna treating me basically, what already but others, have at think main, River coming what Waste they're around the step the could Let transuranic it's contract. out of Hanford? is specific long trades total them, DFL Without

there is frame global So one over time yet? achieved not a that a sense potential Or amount? dollar and sense is --

Mark Duff

I Savannah River scheduled pretty [indiscernible] Right the Perma-Fix of pilot all isolation is Yes. for decade. Hanford transuranic the begin and to packaging the minusing shipments tail in close plant in mean in hamper Mexico. now, program waste New end Hanford to transuranic programmatically, the lot. means transuranic it and shipping a to now, the waste provides right And is processing WIP. of primary this later

So now, what types transgenic and contract one of Plateau is the they we're us it's right supporting or waste doing waste. ship streams of our largest different

Hanford of We to have out, back standard volume. to a very DOE is some that the That it's put than goes. into a bit advanced to ship boxes at revenue that, to more and turn minimize little segregate about little store repackage goes a their it system waste only transuranic represents they maybe waste, a so the It to months. We the roughly and WIP. number it month waste it's increasing. That until $X waste million in

and for bit is We'd a between, program us it's many here be have that. and range, that. come it. don't good value there milestone recently quantities transuranic for total $XXX for tri-party we there, removal little at won quantity the that. higher in know, I know sustainable somewhere certain a anticipate activity. So million we for all done maybe slipping We are It's In eventually had it to at contract $XX in overall and agreement million There's to that to there's that is of That a transuranic range that nationwide a Hanford, screw but very don't of a will the most the a strategic But higher yet, likely. additional requires don't I waste I waste about us, think of is other words, that's getting funding. there TRU but period time contract. up connected backlog grand meetings certainly level radio priorities there's Perma-Fix. due a

not haven't right that's DOE different And That's it, a the the We that's contract. approaches. we're with, about tenth $XX in TRU out talked lot about one award, it's announced the it's Valley. other But but through a important. start million is going but one technical I'll that's West now. coming dramatic, big

our So strengths help for to positioning and some be capabilities on Valley. team team will that our and West provide value good at Northwest a to

for So program us the future. is big a X in deal

haven't lot past. We the a it in talked about

Howard Brous

further but million Last I'm a talked those, the I TBI. we although generationally what that just XX it comment? DFL, DFL, Okay. about not TBI that at fair least, about vitrification you. these day, to are of is other ability is We go. a X waste delays, years, XXXX going it by XX after million gallons plant, place get contracts a fair basically be Basically, comment talking looking And they fourth still long build but the and for is have maximum for DFL as possibly to at fair or and any to if the notwithstanding plant a no But is we're statement plant, gallons understand and $X.X day that million not time, cents a waste costs closer billion grouting closer Is They're process which consider to we vitrification builds DOE DFL. it plant. a that. $X year, same quarter government.

Mark Duff

Howard. fair a comment, believe We that's

it's and hand alternative we us labor the area, high on think be the local positioned the for site in position a alternative all mission. the for to agreements Perma-Fix have built a what other the exactly and investments up, overall capabilities recent and our the put the and we've we DOE where locally made very value just for Waste, I provide with described, team which ways the is of DFL quality to unions Northwest in best grouting the value Hanford processing

Howard Brous

asked Ben, talked So from plan have the people are full just about earnings Is DFL there of basic that the for various of People questions who about feel XXXX. project last before. still have that comment? a comment, couple year. a $XXX a VIP $X is a whether in assuming do fair start stream roughly little sometime or it's you comfortable bit DFL or does XXXX still of share, Is But that full operational the X.XX%.

Ben Naccarato

about of What the $XX to Yes, which we come additional which up has looking XX% stream. for The million game openly would are looking to talked rod cetera, expenses this to is fixed million is give cost. regular of our what we'd of at talked on probably expenses, go overview million consistent and growing support $XX fixed million this the XX% from Howard, we about guess we to margin we and business we've $XX our variable it is of I into company $XX and costs an is that's a typically because et $XX that about talked to in capital maintenance, big I incremental of calls. kind the couple another we've range, believe capital considering that you seen best you metrics insurance, And waste way million the is range. advertise We've to it be so million occurs. wildcard be in number. give We'd or a about substantial other $X kind -- We've of this XXX FTEs. changing to nature, the this when And can consider the year. utilities at revenue in handle

probably pretty shovel million that $XX get range. the real $XX dollars million in you in ROIs that, million of have of significant years you payback together, that all quick, might a couple range, the So $XX $XX million to EBITDA to a XXX% income that. if lot some

is $X it's all happen between achievable. $X that certainly things say that range very think could reasonable to I'll with that, other that all So in to

Operator

Your is Russo with Sidoti. coming from next question Brian

Brian Russo

the real Just quickly quarter. on

likely the which project You pushed, the what there amount delays the customer aren't Is third quarter, of quantify is being being pushed fourth revenue way right? temporary in what in to mentioned is pushed uncommon that quarter. get to revenue any

Mark Duff

that to give projects a do to can't paused we that the were do other amount it. a we difficult were a we've projects a will But pretty up moving through quantity revenue well And little was in you takes assist be else forward to starting in It's QX I as expect see in that overall to be couple that add you in of of flat QX had backwards to that, typically what able but the I here, negotiated. QX. better. getting similar see look happened are into a of and from basically, step of there I at push any seen which -- fourth up see pretty is define that? Ben, quarter quarter, to we total have QX. that we'll REAs want for some some it But we'll new a of that make and couple of guess we'll

Ben Naccarato

No.

always fair. QX that's is those by and impacted holidays think I things.

lot we So do parts we into again, and but expect third missed of beyond. there's, a a the of for moving -- the lot move what to forth in and

Brian Russo

it what just margins Got normalized kind just it. low the revenue segment are? relative on of Is higher lower seems the to Great. And of a and dynamic? cost function then Okay. the fixed fairly it margins,

Mark Duff

even we brought go was they improved on forward. little we to of or lower normalize number issue, there we productivity. on plants ship It treatment good we waste the margin it's the call usual service the revenue side speak, because higher the that that's going was mix was so and that to down. size touch a higher But had than don't direct around a -- a them, broke Well, the at waste it we because of just and and what side, that -- expect this -- time and streams a

Brian Russo

just more Washington which of Any Is Okay. the more taking insight formality. from procedural? it Or there? there read-throughs just I of RD&D an to DoD any State then insight wanted I might on the Great. ecology. And are just have delays time are permit get extended from of been review, delays a there. period thought any permit the to they

Mark Duff

Yes.

and a not They big big bottom asked no is permit. this they we We The questions heard of several idea, some Brian. I have line DOE, is questions. answered months it before ago weren't that

as why. really gallons. long. So this big around that taken why turn of X,XXX I difficult the to whatsoever this appear insight it But would for thing be than take everyone anticipated state to certainly longer a a have for lot to effort, no understand we an it's certainly would has not to so but

Brian Russo

update other contract or has the DOE that Okay. any And just the then procurement any the the ITTC rebidding and on again options either scenarios?

Mark Duff

there's Yes. to it I the That's final revision and on information now, a of to more that say still did other be February. decision team one that for the believe team than extremely That's the are rebid. And regards request. now the Atkins options other available they're I'm say or these to complicated status come again what protest lot than Each going of other could What this that's to out very procurement, the could to in nature provided in the what's of options response, with that BWXT, I publicly alternative final before to that in words, speculate regards win. revision, Atkins revision file make to to Jio to or DOE -- a submittal the the unprecedented would that a in has There's a regards go assume to to happened. probably GAO to than not did a in that sure award a with anyone award at an proposal proposal teams difficult proposal believe that request.

the any, rate axle around lost So nobody No protest in yet. want anything space. it's really one's and has

And got what and is lot I the one. what data the give some we've about there's a not legal wish the that I know us, speculation, the So does Brian, idea public, situation or on evidence you but no this including is. could

we this wait. it's do can else back much at really So you sit just point and There's Brian. not

Brian Russo

Hypothetically, just XXXX, for helpful. production DFO start that's months full or more -- would XXXX, and be correct? of up. of year XX at hot ramp be clarify on And all if No, it's Yes. full the at won't DFL, full hot There's then to late like there's production production XXXX. in you won't start-up like a be more

Mark Duff

it's That's one that, assume probably XXX% statement be to starts be I that both initially. is like when productive good smelters don't not plant any thing. are but your could going a correct up that know operating,

correct assume for it on melt will So will it is with all off for are will X cylinders be statement at a before and while start million that X least hit gallons design your time, would their year. -- melter all basis at maximizing a shifts X one a and they're

would that XX% at see that So out and it start be rate. you affluent to X%, I assume come would

Brian Russo

you one don't Okay. if last Great. And mind. question,

sorry this, was services if I what -- September? I'm the missed but of as Just backlog

Ben Naccarato

It's range. in million the $XX

Operator

Next with Investment is Taylor ARS question coming from Partners. Ross

Ross Taylor

contracts, talk the think here, Yes. kind what issue time of in spent going. real lot of which a Gentlemen, into let's revenues we're I is about and where is important want to we've dig but I about minutia

a you $XX Just kind load. million you able to million $XXX base of ago, be to bit do indicated is that should a

to did about numbers. you don't baseload to to last this have you get to $XX want the this XX% to a roughly -- being or X base of You quarter XX%, operating load quarter we $XX My take that what's keep so to that fourth Why me quarter, XX million where those need kind you're million, to you're of or math talking next it be? going same. get on tells a like

Mark Duff

really more Yes. speaking that. Ross on annually was I

that is XX% profitability. is hover minimum to every Anything So our at the a try a pulled where on very we rough fixed that a quarter. had to difficult down spot gets And based that's good bit. below us to range QX our But on XX% goal cost. our sweet around

$XX So minimum $XX to each million quarter. be that's need to our maximize typically where at to EBITDA the is million we

Ross Taylor

Okay.

talked to -- get and there quarter in Do going -- like. right the you you do we're this in? -- you is can you current So see get that Or something pushed about wait? and the -- can you you we're Do to there? stuff being

Mark Duff

new No, quarter, We that as we I up, this do as in it's as I equally at not regards quarter promising see think to to like and roll little the as our a what said, the projects as right looking through least should good if now, revenue. forecast particularly will difficult quarter, starting a several margins projects. as predict and you pretty we're good this revenues at have it looks to and the look next better. on But be quarter quarter

million million So annualized quarterly -- we But $XX a close I last really of or to the for the continue we're to year. will we as to when well finished $XX really in that $XX couple we optimistic and come that quarters million out mentioned back see the trajectory on of goal that had is in range basis. the

really bit So we to to as because those you above got we XX% know, little that to of what be delays. below And getting be this dipped to we're XX% healthy. is quarter a

Ross Taylor

Yes. Yes.

seen looking in at we've it's it, Now guys win. a been a while since announce you

think the How How you stuck talking some the of And your you've million started that of a happening. the quarter. on ability get caused waiting do the early talked stuff out excitement produce of that -- could noncore then, be you of in we've and Hanford year comfortable lot the year million, these $XX to to $XX this You of talking some that were of for ability decided business about. for just can Hanford are or the wins we you since for to out get kind obviously or load new been name. with next kind things push current this Italy in extra more of what -- get we be to bit. some And about of able kind operation getting the about

Mark Duff

list that high be significant be as with could what you're positioned quarters, that we a awarded of we're really bidding quarter, really quarter, that is on many well are win mentioning, for by growth Ross, chunk haven't this And we're was next X opportunities the next -- our big these next seen asking Yes, this literally I opportunities that strategy. would summer. about probabilities

confident very that it's announcement things here where mobilized very very to selected, I contractor we Monday, remediation is feel But -- track the because can additional X, it and confident they're we're us in So last ability We're with been I it. going. was know it next heading, or we'll our way ready good about And week. the it's in actually, to retooled it's is aware get mind, confidence just there we're since on got JRC, weeks. we're and and the awarded, are very last move The been next to an that and week gives make this about us December, be few so week, got on. that. everything very we've for in over saying forward the has I've waiting to bid of optimistic these Tuesday

opens in strategy. that to I So of-- happens, it Europe. it lot before, opportunity for that occur there. as Once And of the overall our European up of we're a mentioned kind waiting it begins implementation

October. be can't when -- from asked November As just because going defined it awarded have competition extension The there. considered bigger. other than be bidders is to OSS that's that was I end revenue one big the very us we lot say for a as into XX-day has And piece on of DOE several for implications scope an such the overall to far speculate to Again, of that it's significant got from a contract. the

as to it is basically you asking days. change without when for maintain your costing for XX So extension another

out come or I in so. So next to going that got that's to believe the week

we're and So not are them. But the the the us, these of the needed good been and and magnitude win. proposals innovation that point understanding opportunities meantime, is same in plan for aggressively that and we're teams for other It's to to we things coming. very impact, on frustrating into same pursuing see getting how very providing bids the very,

question revenues we're talking X going these next nail in a Ross? in months, those about. of the down investors answer to go get to So and like direction I the your Does do we're couple that see we'll feel that our

Ross Taylor

trying in idea the kind you've with this. I wrestle to because can't kind Honestly I'm been stuck we've really been you of control -- and of of understand

about of up? what to some next we probably see if in we up that you've talked up the get creation, that other the $XX the So Europe of Europe, could open like, million to Because comes before year? does understand Italy past. year, trying Italy, opportunities pass I'm end opens get out that opens If

Mark Duff

plant necessarily The to a we'll would place. Westinghouse. not now, forward time piece the And with the again, that still has that that's move of in England week, Right in does which in with I GRC. and met need revisit with be we And a is all contingent for It's some Europe. impact GRC by, building big because agreements is have the going to that. provide on it to last what them for ability backlog it, service plant able much all

years take your answer going to question, to to that's that several build Now plant.

those to we deals several with waste additional have But the of coming in in all begin in to irrespective plant. being Croatia, are that However, Germany, in a have clients waste not position Europe worked and in eventually. backlog start there moving in to near that shipping in that term for dissipation wait us they to the of a and plant such are the -- not U.K.

closer international range, our from to it the million waste 'XX. So to a $X $X now in million we $X million annualized year receipt million growth anticipate seeing to where an of is in of backlog by end the the right $XX range

talking to And And clients GRC's as the drivers piece all not to has again, -- -- residues a successful thousands have, to the me, drums piece there force moved treat So back those it's we German of that them contingent on of their successfully. over big only be U.S. waste. excuse and big organization to there's and in them that. return those reached been or cross a have that, but storage able and move have the are ways, the facilities take capacity regulatory of tens we on the

remain from should close optimistic by million the a really we end in we Europe. So we of to on feel $XX revenues year 'XX, annualized, be that that and

Ross Taylor

Europe.

on are that the average a kind you at issues. do we with company other of And come load, Okay. that as Europe profitability? -- these when profitability? kind about we of obviously, in [indiscernible] base -- -- for Does what just waiting kind talked you've then you of -- think as

Mark Duff

it Yes, does. Correct.

-- So European tack our over cost, is for here. treatment And provide available we our but market the -- most we provide or that's you pretty to that the for our pricing of costs the options transportation we for on then close folks provide there. much only what pretty those

Ross Taylor

Okay.

from to can we'd Well, investors of in obviously, to outside let tell love getting of think signs us the today's obviously, year trusted tangible action and but of are some and I remind the between end and someone your Okay. you -- earnings-wise victory saying, as calendar have if because I'll should you're come ask, the see me here you is pick control, win everything what a and as pretty you and other that's an powerful going up strikes hugely chance XXXX to some enterprise from powerful up it a be year this be a , factors. this is ramp you

So, thank you very much.

Mark Duff

all gosh, You make heading opportunities, but for bet, and agencies opportunities proud of and announcements we're be And bids with announcement. on very we've Ross. our we typically to And what other by, And buy. saying, say, is -- continue keep don't do department fire. you're It's there with all to frustrating "Oh I'm up we're that and keep Thursdays, the -- look weeks direction new very for another down my to come each We the new irons of in every and waiting the in goes fighting these heads out at very can those and government these keep sensitive what we most us. X too. our it

appreciate I your So support.

Operator

William Your Miller. next question is coming from

William Nasgovitz

all billionaires bottom them RFPs line, stockholders but Yes. be think really to a don't. ending our we'd I generated My of writing is, of question understand that and they

like about have the you those or of how many awarded? statistical those quarter, of I'd you out talk to were end stock. of win bids the what our out, about were So we, many last did stockholders win? but how is And RFPs constantly just at many who the percentage, awarded, know did how You hear

lose? many got you've us Let future many did you How not. last quarter? many So or bids whether a win did how got determine How you you outstanding.

Mark Duff

-- you pretty exactly, quarter, And in have A can job, we [indiscernible] Beam, about last statistics me, Well, the of for but Nagra $XXX XX% that we XX% this actually had mines we're estimate clients, -- numbers Falls, and be quarter. number I that of a had the couple don't wins front have tell in million in outstanding. I had We good values would that, vanadium Susanna. I -- range of potential would have San but submitted. QX, contract bids Ion don't a those rev I to and crew total that we the commercial we of

ways ones. couple an a you, value time some the big is submit a of percentage to the So bids you bunch want you what provide bids win there's submit what you for way, of versus of because some on of goal you to to that number to of our answer do you ones we use potential of sometimes percentage X bids it's one small how And that is bid. revenue not When win. a statistic submitted a and necessarily many other is XX% typically number can get and the that is there's the rate it

sometimes it's it as ones which haven't. they So that we client view kind this we on typically And is or an which are and close rate and the win industry a government business. depends to announced wherever in as the XX%, XX% of XX% have between standard

answer So lot without data. it's your to of difficult question show, a to caveats and

we more regards little on your a in next track bit to can we and but the -- do that, So try question. information to provide call

Operator

question next your coming And from Stephen is Fein.

Steve Fein

you because me you Can hear speaker? a Can hear me? on I'm

Mark Duff

We we you. can hear hear can you --

Steve Fein

questions. depreciation XX amortization, a of that question -- here on the I'm XXX significantly was versus Why I I XXXX. -- looking for lot on and and But Mean dramatically is was depreciation got up? up? the why that moration have so a so for that at

Ben Naccarato

in typical accounting see unique just Yes, asset isn't as It's and The way closure related ramp closure needed some Oak it's liability, costs. an called an would closure our in with capital facility there's new the yes. a in the work, and your the situation Ridge. depreciation ARO accelerate goes and the balance asset cost we're we against on Steve, the that sheet, And was depreciation. up, about number talking you to number closure that offsetting lingo,

Steve Fein

onetime just deal. So that's it's just It's average. -- a it's -- just

Ben Naccarato

Correct. Yes, down it slow will now.

Steve Fein

I contaminated the waste do have heard All in that's questions. titer. I the not right. about out of come have a bunch of -- this that's

the Mark, is, there that fact the of it's question ossification my it? So change contaminated, that does

Mark Duff

a No, it little bit it's just the design of specific that basis within contamination of has a not the kind more DFL.

Steve Fein

So the ask I what again handle? Or was? for can to could contamination DOE tester? that's through something hard something is they put the it that Is

Mark Duff

the They tester. to release, from was can ran they again after within high. the it press and the but... radioisotope in through but that it. I they have it reduce put try season, through the it's it's believe... I to believe I thought the a it tank check tester contaminant I put it

Steve Fein

problems. it, would have would they not if they redo tank But

Mark Duff

they have a if tank. it, to But redo put not would tank They different they it in would problems. have

enter So it can was again?

Steve Fein

Yes.

vitrification let's how they asking would Howard this All true not it Okay. Is that and All they if -- the initially about was Perma-Fix how long be did liquefy long, secondary to waste. and fine. When is waste. to have the got right, right. say, Hanford

why closer because million it's not so of millions is gallons, hundreds that's waste actual probably long. of take the of gallons XX the would and it So to liquefication

Mark Duff

to about X, That's to It's to X.X X absolutely be to believed X. correct. X

of the you So add get because for is every to have in out the or you of it having to gallon a that's either most contingency gallons dry slurry require couple it going water itself of you're a the to tank, in takeaways out. get that to

it. correct. remove That's to some add to have we So

Steve Fein

over -- I'm move to to Going going Europe.

created in by So be people you if you is Westinghouse -- a would plant? provided succeed Europe the

Mark Duff

be our facility technology license. would It Yes. in Westinghouse's

joint a of Westing. So venture -- it's

Steve Fein

that is And XX-XX?

Mark Duff

XX. XX, It's

Steve Fein

Okay. All right.

that's but the who's thing you're a me, -- player somebody that fabulous. So here real is with to main -- and joining big the

Mark Duff

right. That's

Steve Fein

you And comments, you per the states mentioned the rod you would to that comes then regard in on in per waste With really plant we talked to -- waste. go rod, In you're that right. rod vitrification when the the way treat and in the then then that the goes All it back only there's Hanford. secondary about, okay, and player. to it secondary additionally, the January,

as is, question my So hampered? could been back be that that there waste done have go secondary and very -- work that, way

Mark Duff

have the that that opposed the is that's that landfill DOE capabilities, one will treatment have DFL to less brings be there disposal for of waste... into to of of treated of Perma-Fix has a the They the being disposed this back attractive. That to -- buyers state lot For state, anywhere sell value at waste makes Hanford Perma-Fix non-regional a adds for disposal. value it that else, ship ship it the and out the EE local which is as the

Steve Fein

get So can me, question was secondary you -- excuse my -- real if in it the be disposed waste. Hanford

Mark Duff

it long answer as waste land. the of be to meets the disposed an was secondary The has as

Steve Fein

came you think And to where I've it. And getting all my been And a you 'XX when on, I remember I wanted in since $XXX to we're All period, you were kept I remember saying there somewhere Mark, answered. there, stock towards to right. was we're think, -- you or 'XX million. achieved where going tidily move the then somewhere, I XXXX. in But moved. okay, All guys I Okay. right. just a questions listened

a your covers understand a potential statements back do I say, just when I keep what so happens in And -- was I And gives like have happens so I then million. quo. what forth for I take so because then been you always is you my reality. business the chemical and -- the look so at when do at overhead But when having history was and look will base critical manufacturer, history, that And been positive learned listen strategy I encounter. other hey, that I base things that the to transparent see to -- that say I've -- that million you that do this there when you've when you so because then your and there'll at, always all be be is $XXX very I that possibility $XX to positively look you And great. and And my that's is and breathing just room. so that's pushing. the changed business paid something that was just business to something And that status happens these you

what trying guess this is I positively. look I'm I very to at so And say

diversifying. clearly You're

some you're at one then same of is you're You're other circumstances you bills. occur, clearly that saying And get time, the more. these then base, which to a do see go. could we you a when your the vision And that key bidding that paying solid here

you leaps, So hard, it's think hard. but you're all. big I that's and world's commend again, The I the and -- guys taking

you. thank anyway, So

Mark Duff

right. All you, Stephen the for share. Thank

Operator

Unfortunately, we that's today. time to floor for now Mark Duff questions have the the to for over I remarks. all would turn like any closing

Mark Duff

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

Operator

Thank conference you. call. This does today's conclude

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

Perma-Fix Environmental Services (PESI) 2 Nov 232023 Q3 Earnings call transcript