PESI - Earnings call transcript Q2 2024 | Perma-Fix Environmental Services, Inc.

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

Operator

Greetings, and welcome to the Perma-Fix Fiscal Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Mr. David Waldman, Crescendo Communications.

David Waldman

Thank you, and good morning, everyone, and welcome to Perma-Fix Environmental Services Second Quarter 2024 Conference Call.

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

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

performance. GAAP today's is an historical directly measures. information include to the today's believes discussion non-GAAP website. on additional comparison A news that measures and comparable non-GAAP of provides will our most measures addition, measurement in In reconciliation the consistent available release Perma-Fix of its to such references

turn the Mark ahead, go Mark. to Duff. like to over Please call I'd Now

Mark Duff

everyone. and David, morning, right, All thanks, good

procuring other to government shipments, segment. Services new projects ongoing and continue delays in within QX anticipated, awarding As task experience waste in orders our we weakness due to

taken addition, weeks be one equipment repair. this repairs an has Those mid-August. fully failure X nearly to we that we completed by facilities operational experienced to at expect and be In extended week, of our will

in Lastly, were marketing more launch our PFAS, technology about to to sales, deliberate engineering and of investments earnings the which the R&D, I'll support our impacted moment. our by in quarter newest during treat a talk

on heading the we quarter's the results, with of consider we're issues we were second XXXX half the over productivity initiatives. we're and about large government and several then making month revenues to working projects temporary, the with encouraged. why we're improving improvement like months. of disappointed government detail so some I'll outlook meantime, transformative In a as each the into we more including While starting first past to headwinds as being progress we the see and of number and that we talk on the in discussed, remain our faced, potentially discuss I'd

and X project previously largest Navy in projects, for we Princeton Lab March. the USS our completed Physics Plasma McKee As discussed, the the service

trends to task base new and within have orders, on until we extended These starts a factors, our procurements, industry. budget did was not in the unique were be Congress's delays which project the weight have Much and this been replacement important experienced to funding inability up the impact continuing to March pass and led which direct that shipments business those to limitations. due drag to in with revenue to this anticipated of subside we were begun industry-wide. had year, note the not make coupled federal to delays long-term resolution in It's due to government have projects delays to completed, the not However, Perma-Fix with the of gap.

'XX, international particularly both and markets, and At broader and services waste. in year approved healthy coming including same has pent-up we for hazardous Congress offering to the see expect fact, treatment In at we levels our the waste demand both time, in commercial diversify government radioactive Hanford, fiscal and to funding months. the our for continue

and now confident the I'm QX, that encouraged For early shipments these evidenced our the others, behind reasons and us, activity. is in waste by worst increase in trends bidding we're by and

million to range of were segment, several Within the appear QX waste large with of first shipments half with trending Treatment million be to and toward receipts the $XX $X nearly million in momentum regaining receipts anticipated. QX $XX

segment, from bidding increased Services benefiting the we're Within opportunities.

addition, our improving In profitability is in both segments. steadily

X initiatives, deployment new specifically, of at procurement the secure DOD XXXX, for been More our we're years. expansions anticipated remain that We've ongoing as initiatives and midsize would potential teaming large EPA. for PFAS DOE, our potentially able and waste to on for we substantial several positions to XX including focused next in within strong awards throughout technology program or services in revenue Hanford initiatives. international positioned procurements, increases ahead, large and and sustainable growth as Looking the both represent well capability

as as next West example, larger quarters. be participating as and the expected all awarded Demonstration project York Valley the in and several well operations in large teams procurement the over mission for of For Navy are to part we're which Buffalo, opportunities projects, the New support contract

ability their of support define projects significant pivotal facility by that priorities of of audits of partner DOE the commissioning comprehensive DOE's remains including XX Hanford, compliantly the agreements on Northwest effluent following past We facility milestone. and the the involvement I'm DFLAW and August Department essential anticipated were our DOE meetings Perma-Fix Oak hot at supporting the currently by addition, crucial in Hanford Energy for to Completing report of the and reiterated treatment the facility we've remain regarding committed the treatment safely and efforts cleanup the successfully to schedule in waste. our and public the several mission this these achieved DSSI milestones for completing audits few our Reservation like and pleased to over at months. our X and In Ridge

the is a implementing settlement the to of remain the will XX April EPA, grounding of XX XX next will tri-party program extremely DOE and We that mission. program, through likelihood dollars these State of to affluent the we addition Washington committed tanks the between the believe taxpayer support the billions retrieval closure and agreement the of commercial In save treatment confident in include to off-site in years which in Hanford programs, of routing. support DOE

but of permitted located the state facility Our waste require ship risk. higher the untreated site tank of XXXX liquid, waste to this quantity to Alternative meet these facilities would adjacent Perma-Fix to Northwest completed. unclear state unofficial agreement for goals rail. the these define with offers number defined difficult of of these to gallons estimates exact The be out using include up X tanks ability and for is that expectations they've to of will waste only disposal processed million the for commence. a that the removed facility of grounding, regional to waste approximately grow Hamper environmental out is operations shipments from to large It's annually to when be be about

priorities DOE commitment generated in January with DOE communicate This commissioning is to to one completion of in settlement last document record minimum DFLAW meetings to agreement Hanford operations also of its from to as the to X,XXX estimating committed meters Vitrification a ship scheduled the However, of highest is from their the hot to meets the annually for progress the capacity when DOE's continues regards of â€˜XX be winter years for XX start in of DOE's following effluent full beginning of facility to XX operations. cubic retrieval Systems operations in operational department Northwest â€˜XX. tri-party DFLAW DFLAW plant of decision of waste January the defines the â€˜XX. program published The milestones. Perma-Fix up the underscores recent August

a including We're the of anticipated waste Italy, other programs. As I've as the in shipment on past, an continues promising in number altogether opportunities volume Research current on of international of Center the more mentioned be production first the basis. with our combined Europe. the January in annual also would Joint plants progressing to also XXXX. advance double of waste in Perma-Fix than

past waste. for both large Y-XX of PFAS-contaminated to deployment EWOC located begin plans us, of processing Additionally, of in in commercial recently including of of for projects just opportunities, begin targeted projects, truck of known strategic as value our we've facilities. and regional several strategically Mexico liquids following The next Operations separate This we've volumes to million customers in PFAS Center, implementation to our previously the cleanup facility number the facility and waste waste a over located both including is in Oak these unit address processing U.S. the future to rail Security treat Environmental Oak other upgrades capitalize we released of on Ridge, our our we for mercury to EWOC outside the purchased is secured radioactive We also of significant, from valued In volumes as first announced is $X for Tennessee. support These and been to the the difficult to and proximity and facility a materials. receive years over treatment that this we Laboratory programs decontamination EWOC note, waste of both new Canada months. contracts are Ridge well. and also capabilities, Florida. Waste this in invest excess National XX as large-scale Complex transloading disposal National close waste facility in the as acquiring purchase larger

progress us this first partner, ideal working unit expected commercial year. unit reduce final we've Fast team completion. in for design partner with later our fabrication terms our to fabrication to proven is engineering in and an In Perma to design with And concurrently our significant of ProcessBarron technology, fully in closely the and time made complete be ProcessBarron. to with of operational This collaboration PFAS the be our

to of installed for additional to of be prototype destroying year. productivity As on established our in volumes destruction capable performance XXXX. throughput to to accepting operational and we be each a batches prototype, by commercial a at the system we fully second-generation ways increase throughout of system larger address several liquids. our and of to defined for units XXX expect will Based PFAS track result, goals expect by Most on results gallons. facilities and importantly, for engineer we're We've this be QX PFAS

This to first or We EPA the problem, agency earmarking In a extremely for is hazardous the recent with environmental PFAS-contaminated materials, substance. extremely been destroy our conduct sealed can for destruction in traditional methods can PFAS our parties federal PFAS intensive, address pay to and cleanup. we've U.S. and to ours will to compose dollars levels about process actively of has be EPA investigations as be information billions the designation addition which responsible disposal action and to the and the unique, taken funding, decisive believe known enables sharing unlike accept this compel process destination new threats chemical that in including of acceptable unit energy

the stated in our destruction developing demonstrated from PFAS commercial exceeding we've awareness clients, government. backlog levels in of requirements, dozen and process advance bench approaches. already scale a pilot anticipation samples anticipated or regulatory of the including making previously, scale liquid is In received As and industry we're federal XX.XXXX%, operation, significant our our We've of this achieved XX progress and raising over a start. PFAS QX

demonstrate successfully now agreements our over with our we developing much our In with that We're can as development at overall. considerations pilot the operational and engineering already achieve both quickly QX. the technology that in we able a we're pilot which performance our replicate moving facility. that use demand high-performance this clients to towards plant we're volumes. applications, early XXX-gallon in same effort, and will firms bio our partnering are We've metrics with scale will discussed. with these but demonstration bench require parallel the confident completed soil several we're addition, rapidly plan levels technology sludge market testing achieved different we've our progressing Once and align In same larger

the given our wrap growing to encouraged outlook outstanding well business as extremely the waste by or So, of as for bids understanding level receipts. awaiting award we're up, the

strategy. and we ended we quarter believe beyond. that the we addition, sufficient to a execute over balance $XX.X us active which growth be we've cash, the sheet In million believe transformative a number to same solid will and have resource time, provides in the with in XXXX the of At maintained projects our company

massive these important ultimately ramp While we're potentially have we while were hesitant to particularly that we raise of amount us. the ahead the flexibility to that these quickly also decided and given to support to balance customers was working It raised, we funds needed the we projects start. magnitude sheet show projects up of on, the the projects, we our

and performance in to results On what will in I'm detail. Ben? unprecedented financial ability very disappointed believe turn of first and I'm an navigate Ben, proud over the year, the more the our half beyond. preparing of While for storm financial will the that be team discuss while our XXXX I'll opportunity to note, we call our who the in through in

Ben Naccarato

with revenue. Starting Mark. Thanks,

decreased one revenue operations that impacted an mix customer been shortfall the failure $X.X revenue altered a standpoint in or of failure to was $X.X related our in the down the segment Our down completion contracts quarter replaced larger the total at in waste equipment $XX rate quarter equipment was to of compared revenue was was as In production The pricing $XX value projects received our to and also with waste. lower-priced was due both XX%. plants. services. of million. our lower segment impacted negatively early receipts late led from Services second The last processing that at leading treatment 'XX the of segments volume Treatment haven't Services primarily of decrease in the delays million and million, continuing in segment, start-up projects to decrease The $XX.X year's from in X our as and the in revenue million million the 'XX, similar a new the our

million was and impacted Treatment the compared negative fixed for burden the the waste volume, significantly the biggest was million $X.X gross gross gross $X.X Our quarter to loss the from a mix in where our 'XX. of The income to the profit. treatment of QX high impact profit profit the cost plants at lower revenue segment,

which revenues, segment Our profit lower negatively. also had gross Services impacted

for is Our quarter from were down the by year slightly which about million, SG&A costs XX,XXX. $X.X prior

option Our by expense. payroll higher offset lower stock and marketing, costs were travel and legal

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

defined is prior basic per of Our to for the $X.X release, per diluted total year. a this $X.XX $X.XX from negative compared share the in of operations $X.X as million last income loss $X.XX year. diluted and morning's quarter continuing of in EBITDA and was million EBITDA basic share for per share income press quarter we it to compared the

million million with the of balance equity year-end, to, $XX.X Cash to the the increase balance sheet. was to Turning on the course, due sheet raise. compared $X.X to at

and Our outstanding Canadian due long accounts $X.X receivable and in the unbilled our receivables were project. down receipt of million from our to the receivable lower revenues full

disposal Our payments. costs million, AP and and operating accrued $X.X expenses reflecting lower down timing the accrued of collectively were

prior Our down $X unearned year. million was compared to revenue approximately

excludes was which debt from at to that down And June backlog $X.X and quarter, December costs. Bank, debt issuance Our $XX.X million million, total our XX in 'XX. for the is was entirely $X.X it million, PNC at

now other and $X.X related is spending the leases and million other investing $XX,XXX. of in warrant in and $XXX,XXX. debt used Cash net by to $XX.X operations, approximately over payments was equity our With payments to related Cash ops capital of disc to from $XXX,XXX I'll mostly by Our was was million. which used XXX,XXX investing $XXX,XXX. for by $XXX,XXX. of and monthly turn represents loans Cash to was reduced from continuing cash operator, $X.X call proceeds our discontinued and provided used operations capital receipts option continuing operations financing from financing and that, term used Cash the million, exercises questions. that's raise for of the

Operator

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

Howard Brous

And disclosure, on the Perma-Fix. investment secondly, Shields full family in equity my last raise. shares banker Wellington was owns the I For

can details you about partnerships developed the have PFAS? with question, you provide First

Mark Duff

to critical Our directions partnering is our agreements into to a market moving our understand are and all fit PFAS in and huge get component particularly and this different very of strategy for how technology revenue developing. quick capabilities that's really

in types X have basically putting we agreements place. So, we're of

in The market this media. on universities solid technology that will of directly into support focused and soil grants, first the our expansion securing is demonstrating technology work with the to

we're complement our for actually to each we're benefit. mutual technology them. is our talking it competitors several that are with other second discussing understand There that fits together how with The competitors to

greater large capability and have in PFAS We from very that concentration, this volume. for like least volume, high are high lower time, or less technology groundwater point our strength for at at concentration concentrations lower other

we market jump So, a working can work into together with see several to of to and align our how this how way. in big we together competitors

Third, we're currently, future working and lot facilities we from concerns in those or also that approved as that desire that with bases, federal the process they PFAs firms once we're operational their on being their And agencies agencies clients We're right that larger they maintain area for customers volumes develop for compliance by client for know the data showing compliances include or different And can inventory. firms we open their of get these destruction performance the a the working agencies. waste. door working get we with that large that go-to and have off-site begin a for now liabilities. compliance samples vendor manage a addresses to several of and client have bases larger of and typically have have that

going So, it. partnering really really point. We're well encouraged is important at it's us, to and very by this

Howard Brous

or second that that there of I contract plants source sole seems one be you with XXXX, to handled my discuss although one DOE, from plant XXXX, discussed both is a the operate perspective, in sooner vitrification operational, from discuss vague. waste, [indiscernible]. contract, by through a they high-level will, with and a in believe, at is all be my the August, basically is the you Perma-Fix. they to question company for That's a they company settlement possibly data parties understanding, and that agreement, between XXXX, Second that. building will And But possibly effluent that if the

Mark Duff

been Howard, TOC. take different Right right for see Yes. contract call the rights of be we now it our contract, that. we'll effluent. that we all for future And DFLAW company the bid they now would way is to for years provide waste IPDC holder the the in works, is the operations the what our that's several that to the now, And winner the types from of them provide rates dispute WRPS,

other my has about life DFLAW gallons to XXXX, through million viable plan publicly, to they're for that obligation facilities correct items the facility for construction a through to effluent that where no options understanding year the support has currently not any You're period. have and new they a DFLAW available currently design stated buildings pursuing they that. meet is do facility X or Ideally treatment line that any

XX of we're So, we're support a the with right deferred we would at it support right the that pretty minimum and through than to the it to expect years, and XXXX. that we've capacity as flexibility now comfortable go alternative longer available got to now, the facilities

to thinking able the we'll us support is current that period. provide that So be throughout that

Howard Brous

of expect please? for basically a Going what contract the those to operative comment also December the TBI important and last talk January to about and XXXX documents. in to TBI. of about rod One, the guess time Can you of magnitude there's one that, frame basically out you When documents tangent. about of we year in X the and talks get starting I

Mark Duff

XX regulators the XX in which Howard. with confirmation And you systems of lot There know, the the a question, in tanks. XX There's are documents, order in there more document. later importantly, April the out They a extract what several as that settlement the Yes. over waste document defined are consent do systems will with for basically. now once finalized. then be systems it's years, agreement, committed the the tanks as And those right to procurement is to likely they from

in and those X.X for that December waste out view commercial they're could understanding they begin what necessarily frame. it in retrieving extraction milestone for units date â€˜XX treatment. million so the installed January the on potential a that that lot DOE slip, tanks tanks gallons close And I into year call a be delivered before, that, would is shooting said basically are or of pressure time those pumping as off-site not is a and moving totes to of My operational that are is tanks, consent of of in systems for so understanding that about that. expect to is for order but anticipating Our and as it. they're direction. and the to be closing â€˜XX a as And start design they There's to for they're

other gallons TBI doing mentioned, they you out is they're companies. that for As initiatives are define commercially any potential so to alternative X,XXX trying right the now, there that to

demonstrated we're already viable that. have noted has and We that DOE

opposed we playing of notes, So, we only provide as one in role. I with environmental advantages solids few to rail ship to be obvious some large expect the risk said associated a as And liquid. my are and by ago, being a able minutes local to that's

and expect for X.X do waste. we that that wouldn't but portion the of million a stream want that because along get all expect be us. revenue can get a line, we'd our half. at great the it speculation, would That's year, to which of be suppose would that backups will DOE estimate, we gallons So, alternative we least get I significant a

Operator

Our next is with Craig-Hallum. Spychalla Aaron question from coming

Aaron Spychalla

August it on like First, track is sounds DFLAW up XXXX. so start of by to

plant in and from work opportunity doing talk could also prepare initial you volumes what the mid-XXXX those you're plants volumes like look Can for Your on other to the as then timing what release. contribution you a of up? So, of start that you're begin. just thoughts standpoint? to Richland And you that noted thinking how kind they about about latest just as

Mark Duff

difficult DOE now to down what with between happens it what communicate regards in Yes, to has is to very been and â€™XX. August comes of

and commissioning by XX. itâ€™s typically radioactive or radioactive Hot and means meets agreement, in they works something the August our the components that waste security very radioactive it all be in completed X shielding to place is specific show in you surrogates the in safety hot the As commissioning settlement it process that and minds all operable. know, of or included will are

one process, commissioning we're they that typically be generating along in the line but assume haven't of operating the to waste. up time this, have know We're commissioning would or And going the to they'd a that earlier, So, August hot and after based that of will melter they'll anticipating but frame. in come when start we in can means, Again, they'll on sort â€˜XX that start start commissioning somewhere somewhere in confirmed the they is that commitment. how our process summer on while. second not agreement that melter run sure the for online, a a

think be with running several must want a in both they X operational it's milestone I fully system speed within to that I agreement settlement melters say, years, buried that full years.

testing close those In and So Right very both to words, they're we through other parallel. together testing that fully know everything they melters is everything somewhere well. between are now, the Xx, operational. will be going going

are dollars what million both treatment at fully we've smelters gallons plant $XX And X million to month a into annually, be and your would it there million running estimated year. answer so, question, operations the a to of expect coming from we operational, a once to couple million ramp see up the to sets once in to range $XX waste

Aaron Spychalla

Richland, handle you're little you're with to an from a bit And what you at volumes? those expand going on doing standpoint just then can how of that operational kind

Mark Duff

part need project. for and of large design as technologies, well DFLAW and the get assigned one now we're including executives focus requirements will on We've meet expand capital right the newer online. what we for our the routing working automation And through to to raise He's some to systems that's as this of for the routing the using capabilities exclusively Sure. particularly some volumes. be this to of

a to we're mod to early what receiving, have to of routing to types phases, permit waste to So, We're going it's understanding understand going later and of to on that's volumes design in what what for be trying we're going do require. going larger entail. and

and plan together next putting and the that by laid actually budget out systems doing. we're be going quarter year for have of the in of of deployment So, what to the end schedules cost we're to the hope the

engineering the pulling team. direction. looking So, on and that an design we some are that together in subs capacity We're some and working for at with consultants moving

So, operational volumes here year. will we're handle out next It to start larger those fully slow.

now, the we current nothing, through are support facility place we new handle right our frame where if in we So, need our things to heading. did have in â€˜XX, to could it 'XX-time probably but systems

Aaron Spychalla

new detail then a just in more And up there, give be kind still you equipment waste couple this And little will of half initiatives Is to year in you a like and the can cost then more of sounds XXXX back and these with are you of streams that here into weeks. bit on that some just the it a failure a repair offering. on the that confidence, running front little broadly Talk CapEx about those? areas for given of growth of of and investment targeting?

Mark Duff

Okay.

one is first the RTO was going out. The

which is And X. when which we a the basically years do whole Florida your more have on you run pretty basically unit. it whenever that at could It XX life down without is we through long stack X, down. goes June no any your RTO, June for at problems, heat anything had went a for you and up It treatment. everything can't have it lot a sets waste RTO up. a it, in. we thermal us The I unit, oxidation stack, There's thermal to regenerative while come unit of repairment went exactly stack out we what those So, made were a fixes. not waste out And guys costs capital took there, the get the repair $XXX,XXX I to and it loss. unit. of that expect in to say system can't now are revenue yesterday. rebalancing cost the to repairing But and $XXX,XXX about gone in We're operational week. be us for next the June repairment say call as

that that July, in get could new opportunity not significantly upgrade capital parallel able in without to have what treatment make on waste we the we August, thermal couple you to QX, in June. blow did Ben, the of a streams fix are that been in numbers the soften might in have but is early would cost We do do in and have RTO. actually the any on

Ben Naccarato

going expense, Aaron. it's I something and to it say And range. number, $XXX,XXX, to wasn't maintenance around a that want be about in Yes. big

So, repair not replacement on maintenance. capital that. and it's It's

Aaron Spychalla

areas been And kind of could that waste quickly, streams CapEx some just you on pursuing then, you've touch other here? for I guess, the some of those new of

Mark Duff

Yes.

upgrades current at We We larger to DSSI waste million-dollar have the upgrade. couple Florida. doing classified components. finished got ones of And a we've facility working couple the at for a handle larger we're just and and to DOE complex of the expand volumes that's a for

We the well Those mentioned, engineering upgrades year, as are and Northwest design as we're September, largely in begin Florida quarters. associated beginning next but the the the include now, PFAS with will right in couple in I what mentioned. will and the I likely of of first be deploying unit just then on most

that all combined capital total to number for raise upgrade. total facility We about to we're relative be the expect between right upgrades the PFAS and now other $XX systems the million to planning the

Ben Naccarato

XX avoid like XX of of term of repair million try replacing to Florida. I'll we Aaron, kind to RTO just our over short next older probably just allocate couple probably in sort that. to in is something going And example what on to needs that months the an of of down happened The the equipment sustenance add did a

Aaron Spychalla

maybe me. last then And just for

you the You half here to backlog a expect for kind the kind in the talked talk in about pickup bidding back results you bit about the third in Can and trend of how of segments year? little of a just quarter. activities

Mark Duff

government waste some coming is Yes. quarter which right in receipts your We're receipts, well. they all which the got their you good the process of as it, really you fiscal year last so don't getting to exceptionally best get revenue, typically. off-site. in leads get They all that into QX quarter now. But budgeted of for always don't year, typically QX want of late the spending they get are typical money

seeing a surge real now. right we're So,

Some year in next ones the those processed in necessarily and larger streams into particularly of will trickle for or mentioned a and these all frame. larger, next and XX are are and be this so level Canada the more year, I time will waste from October months begin flow on here the which will not sustained Mexico,

of side are putting services the On a the of house, we bids lot in.

in think the our We weeks. do X usual as win next that of have $X million we'll going in share X have I feel between to them. we these are million we $X in, win value. ones like maybe and And

which that in support couple hopefully, closer to this be will of all a quarter start-up scheduled have before XX%. funding be awarded as But and are and end quarter, the We schedule, awarded the those are to QX.

we of and will And do of the half hoping end the we to second be the a maybe if things going this head confidence last breakeven, planned the So, as have go year little we're be in healthier as that quarter. close at much high be year better. into to to the quarter, all come better

Operator

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

Aaron Warwick

a Obviously, quarter. rough

as that had part down delays to of I'm you it related if correctly, the facilities well pretty your accurate? as mostly understanding much But on equipment of that much mentioned Is had the focus how as with to, PFAS. one the or also of down is failure You just government.

Mark Duff

will still of QX kind to to so that RTO because spent numbers. down see wasn't They into in were is Florida We But between PFAS. labor. built give the and you that's PFAS $XXX,XXX capital operating. Aaron. our expenditures and outage, on in ramping that sense, do we No, for up, a begin $XXX,XXX And down between The PFAS necessarily September. it of installation

on between XX exclusively people And people. working about engineers expensive it. They're the chemist well very the it's going the sales have folks. We and and

not So those seeing have that is issue. it was we and the it all It will challenge expenditures to that that plant QX. we of took back. because as from particularly reason start planned, as exhaust But that of be the goals was until to the step a which meet Florida stack systems, PFAS, a part we our I start mentioned, seeing revenue in

Aaron Warwick

dollars expecting thinking What's QX. PFAS, since Are revenue million we're about in talking your around that. you couple with of a guess, of Stick that? current I still

Mark Duff

be is and I think thought if X,XXX-gallon thrilled I'd a going closer going In it mentioned, was our batches I we million it's XXX to a gallons now, got $X a day. system, be expected to calls, several right and to about as million, we to do X do a it's prior to reactor. day

there, put some to in in there the head had chemicals space. have we need and that we put So, to we

be to how be not going we're able to going XXX. a sure to We're it's like more fast batch through. move So,

one we're and being the going multiple maybe all take day, up we to and at and conservative kind of and can better. we We're if point So, could long not down sure eat stuff. cool do X, that it's how do shifts, thinking a this

still right already designed, answer now in much unit verify closer up QX get and studied be really important and based your than we're inventory, based on be we've at the document and unit on that already house. numbers to more for this the is prepared is our determined learned a seeing, can data operational be the those storage able we'll But latest, be unit. do design from that will question, X side building in to that Gen year the the And take QX we're $X going next of should most to to it's what performance inventory in have to working it and of through that, revenue in and on earlier. what we're hopefully we will it And to and engineering it be to larger throughput. So, build thing to what we while lot year. the on so a validate our that million And significant

Aaron Warwick

have lack any It you don't possible sounds like customers. inventory of in interest or

Mark Duff

and of encouraged by This that's that. comes can what fit competition. We're today, need. And large And and is we get start to and it into And market we place. have a contracts. in signing the There how competitors and have strength And phase that to I'm by tanks out our rush management, that's talking into is where operating competitors which very very very are, people fits the targeting Aaron, It's confident a backlog where data, the more different, very to then what would the really an is partners frac all us. encouraged technology the addresses if performance shocking. our just We're we're with our we we're. enormous it's some we our all very kinds why different And that well just higher PFAS there overall facility. mentioned, does of are all comparison as of to down at the the and to are market it have moves in I concentrations in claims. some encouraging material over

point a operational the get at it's in time. to So, really unit race built operational this in

Aaron Warwick

state the the and something part partnerships, is demand, your into? are looking that? of technology? thoughts Is Given possible license What to of these your the it around market that you're out

Mark Duff

from that We're We definitely the talking lot vendors get possible. considering that. question a we're It's to. very

fast Gen we're system â€™XX. operate that and We show end our refine not going it. it want to been X that has the deployed can position and until to pursue how Our of get

while really prototype, it all looking you half facilities and option how do improvements, at of and technology. faster the improvements, considering those treating licensing approaches start this a be Gen locations X those landfills. a mentioned other kinds at to cleaning towards to But We run to before, to more at efficient, way going And done. things. filtration rushing a much and it along, kinds as system methodical then do thing significant fabricating out what folks, sums people's that I in is more can kind several for is hey, second the this designing to people's we're lot that treating As normal GAC effluent I different it to this of 'XX facilities get built, and all is of a us. show we're have and we of types at want deployed we're The we're of all as at expect types but we it not does, it, operate real which they systems, that see things, situ, well as of addresses it's things

that technology of deployed more licensing kinds in of we're have attractive would there's field, to So, giving looks lot thought. all a lot of require applications the overall. units you that's a when And certainly that

Aaron Warwick

heard status anybody the OSMS. current recently I thing hadn't that? of What's thinking? much One What's the the about from is

Mark Duff

team word folkâ€™s was outside contracts are of it's I one their at by said just our impacts a people said milestones an It we have is. all. They our other to that held Aaron, information, on the met been was being it's don't just in to or another month no award because that's But like I really they've be of ago, a has waiting June. headquarters It's partners idea the for end no now, looking award. year. difficult DOE other No any what the right early even back I that goal either say mean, to But want awarded. to one discuss and anyone. no silence. that have And or implications why of with idea. I as have competitors think of the total two. I really fiscal understands lot well. submitted. anyone it's submitted, years There's X holdup just August lots to or procurement of view up.

Aaron Warwick

now? like you were there. Last some but it I for Central that there other it good about maybe things also, that right were hear you. pretty brewing of in then status be opportunities you positive that And where and Europe missed mentioned stand What's call, the I much would you sounds didn't there conference the JRC, else just

Mark Duff

new potential. plant on We're the alternatives. work continuing on working to some We're

And behind a little a schedule approaches that slide that of new little we little in couple lot, but kind agreements are what disclose can bit, is changing this will those plant a of it sometime so, hopefully, and the a a not back And bit. publicly. quarter for

some in hopefully, applications now months new in on for of growth in as continue over right bidding Italy well. Norway clients with and the clients Hungary to several see and coming different are We other types there and RFPs

move. in mandatory of the their as burn they they through It's X summer get working or just to holiday and So, summer. interesting weeks slow shut absolutely things really Europe. things down Things vacation continue it, in the or call X as

or for that big good of So, press will work some we're both to waste the XX-month Mexico is for progressing. anticipating a week started been do. through those, and in revenue in to streams X It's great up. about releases can that have get how again Canada us of September a pick type would like last expect we full and we to blast sustained But already hopefully, and really us and have surprise be period for particularly it Canada,

weeks. So those next couple in the all start of here

Aaron Warwick

anything August hearing me And thing facility XXXX. things Hanford. going I been that? quite of just indicate the... perhaps than I've Are starting Or a mean for DFLAW you they're the guess, bit that to hearing earlier some I final that the what's then, on be about

Mark Duff

commissioning. that They a that, said had commissioning, had not an cold they address specifically some ago announcement weeks couple delays in hot would but that of they

sure So, means. that what not I'm

hot type issue commissioning going to they to QX had get of frame, I additional And some say. want months in time changes. think was. would of or system require some at a some can't the time I some begin remember what that couple to parts I is exactly situation

seems on track. DOE optimistic. Congress is And optimistic. it's very very so, is like it

projects. the and in increases funding, follow towards say I range all hundreds you If House would that They go $XXX like million packages. millions, Senate to these Hanford funding include of significant want

they So, attractive. very all look

is now, know at right are never as where But out. come fund Hanford. You plus the the ups to going how that's

so DOE planned. as and very as They're focused that optimistic. success operating So, on facility we're far is optimistic, as

Aaron Warwick

I that guess accurate? Is that's kind seems bipartisan. of it like

Mark Duff

It is it accurate, completely. Yes, is.

progress. from plants Congress start of has that total overall some a is at out there's no sees investment some made progress The And pressure matter the which DOE kind showing mission completion, to underscores $XX on the think everyone looking there. closing I grounding program They some of what, billion. about the to start showing also DOE on cost want fact that tanks. the

Aaron Warwick

to entities they X,XXX-gallon this year. these think do I saying before just get they're that that of Yes, with other the something out testing started end the going put recently

Mark Duff

another in the date. program to supporting system ground get â€˜XX that and going Yes. grinding That's step going,

So good happen large-scale be get in to so routing. progress some that get rolling see contracts too, they and and the place start that can will making for

Operator

coming is from Harpel, investor. an is Anthony who next Our question

Anthony Harpel

completely and literally millions over fact drives of aside lifetime you given Hanford setting the strong humatronics the the that like unnecessary Gentlemen, the it that that I'd of to trucks setting project, thousands Setting the there meanwhile, cleanup aside human would talk present send fact to tank treat. objections aside environmental to of about are of the of would enormous tank local the to and tank cleanup. health need gallons and risks communities, waste low-activity

untreated travel. to Utah. state would waste imagine to please to stupidly that that each do so from this Clive such decides secure which from municipality it discuss DOE would truck waste permits a DOE wants you Texas required tank be can first to scenario, the whether and across nevertheless the In each Let's Andrews, to untreated or tank Hanford

Mark Duff

shipped liquid you have shipping radioactive the of Liquid is difference. that we permits a site. on that's to radioactive system is And addressed. to. have ship don't kind DOE across not When What's waste have pretty from don't all regular I think to Anthony, know, when I permits within have the in the to material you site basis place. done be lines, state waste

being recognized always solids, you to method particularly you're more preferred if particularly. much So, shipping very definitely is Rail when long distances, It's it than dangerous a going compare it is rail. as to the limited.

large vocal you have commit large has Particularly say their know, volumes. through as so, in to don't support the about is do shipments Oregon, when waste by have And do as if state They doing the they mentioned, In number to untreated very states. have very of you to. have it. a been you shipping

a awards that them They I position, offering want most and would lowest feel understand, we opportunity DOE's strongly expect there's I award I going they know to argue the So, well competition waste to risk the be apply with as competition we But system advantages or that backups. so an we done guys down, to we've our things to have environmental very and really well I But cost or expect go believe sense. And or us. our they be all going certain to still still do degree alternatives well. savings very landfills. don't to it is so for have there's for is long. X in that's want told that. they and having they we'll that to the how pressure X or it to as want there's our to for the as them have issue, haven't the mature grounding moving, alternatives. If they don't those would alternatives. transportation makes if if price-wise, able keep be on procured at

the partner So, with we I we're makes our in will and both think that And hoping the we most speculate approach preferred something the out alternative. we landfills be that long work can sense. run,

Anthony Harpel

legal which to award a are on Secondly, looks you Hanford billion arguments And gather the ITDC begin federal Hanford filed tank like $XX of disposition to has team X. lawsuit waste DOE's a the closure. August Alliance, scheduled operations now member are that over and Tank I it

the to commits supplement site the agreement to a time, same treating a settlement waste grounding vitrification. Hanford the tri-party take at portion binding legally as through Now of recently significant

Washington now to preferred recognized have DOE, parties, EPA, all formally as supplement So, vitrification. routing a State

that this to commercial you the Hanford earlier that the document In DFLAW half Rod and be essentially the low-activity plant waste tank year, to grounding will released shipped XX half disposal off-site. Hanford addition, Systems go have for says will facilities and

for please legal sense this will And if waste. off-site to can out? DOE's time time this a impact, expected us of treatment you please the have play the ITDC So, legal any, case low-activity give of what on can case for you line clarify tank line

Mark Duff

of and of done the with by Bechtel. the confidence don't because so I Well, impact see all, on start-up DFLAW being the any procurement, that say first is start-up of bid ITDC DFLAW, I having

that any Bechtel don't with and getting it is in responsibility working. have fired thinking Bechtel fits in regards what idea of to getting contract So, And the the up, I DOE it how has The ITDC a how it I or really Bechtel is this, I quote handoff they're from ITDC remember in contract place. way but don't to they're the integrated. the being, included ITDC when on

be that's by as 'XX, do who's in the We'll to to If discussed, is other contract is a in award X as which original to got I or then, or the third it will not they don't the the the and what if have I'm if one contract, sure the Now rebid. they it the the being obviously, place it of WRPS HTC, award reprocure options happen. ITDC existing that bidder contractor protesting think ITDC in options, we've equivalent. able rumored step or or

are table. options X on those the So

to has or the procurement case incurable consider it I chosen. legend But whether process guys to think the DOE know, made fraction as to relative it they've the want or you winner on clear pretty they the to is not. the the court award infraction

it's I a the think grouting, the much, don't that us if for And to to talked is out. award then situation, not but the really it's procurement type would very, agreement. can in simply rebid it very the that this how havenâ€™t about anybody But without getting just very that them knowledgeable expect scope and contractorâ€™s just WRPS curable, I it be DOE don't talking would go beat. does thinking Anthony, to it impact settlement going second-place through, potentially contract scope judge to they're pick able So, at terms up if I play they see the what or I but DFLAW, point. here curable, about is I existing they don't impact I award that of really team. we're to modify of anticipate know would align then if could it this with missing a

on impact in it'd scenarios any mind meeting these any my these milestones. unlikely be have that of would So,

Anthony Harpel

am part supplemental bidding waste consortium ITDC tank correct tank is whichever of disposition as your does I contract Perma-Fix treatment treat and third-party the wins waste provider? affect opportunity ultimately not formally low-activity to that, subcontractor Hanford a alliance, While secondary Hanford the

Mark Duff

That scenario would contract, do would good matter to impact a on not I that. no think is any And That's see considered doing us here I what word impact. impact ability can't grow our where not correct? happens on any that unequivocally, a of question. out whatever with have

Anthony Harpel

ITDC And subcontracted the issued what is that task the one? orders the value of minimum which small of must to cumulative percentage businesses, you're of under be

Mark Duff

believe I XX%. is that number

Anthony Harpel

number? Is that So that's billion XX% of a correct? $XX

Mark Duff

Correct. Yes.

Anthony Harpel

Okay. then it at just last I'll and then off. hand And question,

You parameters made? plant treatment on understand, all that decisions in use of an the your technology, and where from U.K. have discussions that, Westinghouse have are related building been I we working these terms of to a in agreement any what would been treatment

Mark Duff

I That's to was referring what Anthony. earlier,

fact on things the doing nuclear looking just plant to into regards hopefully are the can't months very, track those. going over much and fabrication the keeping there. get on and occurred details things that with are at to on build we're working we discussions that and to they're changed out to fuel We up relative in the very operating world so. might facility have based that Westinghouse We now the are with in fuel the and through a in as that have And at still at change right some the it details discussions the well. markets the right well But Westinghouse on so next or some XX alternatives where going has I fact we're now

tell announcement go details have as back an in is can I could keep one you business, how are as and But you moving a to our to So, here is are we're small has all how we to agreement in it's understand, a hit requirement. provide and through question, you not. important XX% competitors an to and September if it's hoping mind, prior that second, Anthony, working changed I We're forward. specific your It point. business small mentioned, important and And that.

So, that goal would of is of number that go treatment $XX billion crowded that grounding meeting goal. Perma-Fix that for and towards the a waste big XX% doing

you a So, that treating or incentive XX% in by the through them can consider goal a ground, fast to have they it wherever grounding. that does there meet that, is [indiscernible] and to that provide way winner that get little Perma-Fix waste

Operator

question Reis today will come final Our Kyle from Growth with Funds.

Kyle Reis

And X update the PFAS assuming There gets for. out. has you're X that us Gen then out you contract, been looking then obviously. can How unit the kind years an asked, a But would the just throughput market you of West one Valley year on there? further give lot out size and

Some of your competitors have done that.

Mark Duff

in to the what was as is, obviously, process, I your was. DOE year. stated make several an again, middle the of Valley, the like it the can't of far but procurement question talk times award has itself, they if OSMS procurement as about West the expect by stats much calendar end goes, that

understand there's have to So, I believe they're X bidders. for do on track I that.

proposal, volume, very the a or So, OSMS simple proposal RFP it Valley proposals consider, unlike of large very, not that. to which very and cost it's was comprehensive not contract was the a number include did West

latter we'll And that our well. X, Gen the So, of $XX half all have potentially about far soil are as about the X as that an to expect the Gen X system million revenue is, can second some Valley. in assuming of The for West we quarters half, with XX%. along as revenue in assumption expectations we're X, next what in months last X hear includes operating,

â€˜XX a $XX I a about about a But year expect goal. in a second stretch of little Gen to do and 'XX. more million we be $XX half bit the million it's think year in of generating X

if the design to much to faster been fabrication gets Gen that of have gallons have conservative proven very to much staff changes. And support to facilities number. expect and we'll the where we are where is works just and at conservative I or that's have whatever a the that if think than designing I multiple gallons it'll X,XXX time of better as can units. a we're system have quicker and get it you We putting these feed much really to more X to with of that trained time do it build minimal units. way number as infrastructure system have a opposed a our that's simpler And [indiscernible] and into continuous we and a

your question, roughly, So to to basically, is in quarter million the shooting frankly, answer $XX quarters, what $XX we're million last X $X for. a million

Kyle Reis

beyond to -- it how it's And units to guess long to you're that to months? it's X long that, X then just many take does And how how Is able takes put it one together? fabricate. I

Mark Duff

system final changes piece a and that changes of of still to then maintain to because partner making But first making together. constantly pieces XX the in to and put said, driving can it. go XX We're some have certainly, contract design sign different thinking question, together, fine made install weeks. schedule. of one was there's we're other a to a the number once were from I ensure prototype to weeks delivery have weeks the to we changes. our crazy our we X to your you significant we the we're answer X The as X to But point to But

X months, from the start time contract. commissioned So time you the the it yes, by X get you maybe months,

Operator

I closing it At have. comments hand they to back may over will management this time, any for

Mark Duff

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

the few we're We continued strategy of As for patience outlook next updates Thank you. business years. providing our appreciate further along the and and we further to quite see, in look look updates support you can the unfold. the confident shareholders, forward to providing execute as as hopefully developments We forward to over way. continue the we our

Operator

we at disconnect time, may This and your call, for thank and Thank conference participation. you. concludes you lines your you this today's

Perma-Fix Environmental Services (PESI) 8 Aug 242024 Q2 Earnings call transcript