Heritage-Crystal Clean (HCCI) 21 Oct 212021 Q3 Earnings call transcript

Good morning, ladies and gentlemen and welcome to the Heritage-Crystal Clean, Inc third quarter 2021 earnings conference call. Today's call is being recorded. At this time, all callers' microphones are muted and you will have an opportunity at the end of the presentation to ask questions. Instructions will be provided at that time for you to queue up for your questions. We ask that all callers limit themselves to one or two questions.

we today comments forward-looking. the of will are make Some would estimate, anticipate, may, will Generally, identify result, aim, could, statements. continue, similar expect, forward-looking likely be, the words will believe, intend, expressions should, plan, will and project, and statements cause that from anticipated actual These statements. forward-looking materially could by differ uncertainties these of to a number those involve risk results These are beyond which risks some factors, of and uncertainties of include control. a variety our our on views as of today you them These as rely representing the forward-looking speak statements in should and future. not We update call. undertake statements these obligation no to after this our Report refer Form earnings SEC Please our detailed that our filings, results. to posted affect the release as including website our our as of Annual a more factors description on well for on XX-K risk press may be the visiting from these Copies SEC of website. may of Investor the documents by our section Relations or obtained measures non-GAAP certain depreciation interest, use Also, are EBITDA or financial this note amortization before and we please earnings such taxes, call measures. may adjusted as and that on EBITDA website Please see GAAP. measures for financial non-GAAP our to these of reconciliations

Financial At about from would call our today website Mr. to www.crystal-clean.com. Recatto our at company, Mr. and to the visit over DeVita. I Recatto. turn Executive please us Brian and Chief information ahead, Brian the Mark sir. Officer, company With Chief this are the go time, more President the Officer, like For Please

produced and during everyone revenue record In we our team, of expectations last earnings us our third at record-setting million, EBITDA per total joining pleased were quarter helped Mark detail. third several provide We cases, which for Good quarter $XXX.X including several additional previous the today. will significantly quarter record total third higher The million. of net share you know produce Julie. to want the we and $XX.X I exceeded results Crystal-Clean income, third EBITDA. than thank performance. let the with records released quarter, behalf you entire morning our night. Thank are results how On investors revenue,

Now of results discuss like of segments. I to both would the our reporting

I start our quarter, I will with business last segment. oil As did

quarter the due more $X.XX million. our fiscal gallon of revenues the an the business in was netback, base third and mainly XXXX increase of to doubled XXXX third the oil quarter oil per During in per to gallon compared fiscal of to revenue $XX.X to The quarter second by $X.XX third XXXX, increase compared of than compared quarter XXXX. up

XX.X to compared oil. XXXX the quarter our of record the the Additionally, netback base on in XXXX our of was than paid an the price to due X.X% XX.X% operating and base quarter and to increased of for in to increase customers the the of fiscal mainly margin third removal of operating sold our compared sharply Oil volume quarter oil to third or higher XX.X% oil the business a XXXX. third contributed record the third spread was The of quarter charged the their quarter to further XXXX during used between the sales margin in segment million oil higher during sales performance. our volume gallons of base revenue

the We was re-refinery than gallons downtime years million than of approximately two XX.X team It record Our execute third the of we have oil, well had XXXX. quarter our continued third significant quarter. has been XX% since at to of during more re-refinery. base quarterly more which XX unplanned week produced

re-refinery are years. the We our past very demonstrated consistency with have the over pleased two operation

all increase for million COVID-XX the pandemic. XXXX. service due the lines to negative increases of services XX.X%. the across when million of impacts environmental environmental move in of revenue mainly recovery continued XXXX, experienced our quarter the to or segment. The was the the $X.X quarter In to on to services segment the quarter third an increase for compared in segment, $XX.X million of the of from XXXX volume now compared Let's revenue third was $XX.X We same

margin results improvement it great that we from are revenue of selling, XXXX, the to While $XX.X to pandemic-impacted $XX.X to of affecting year were XXXX part quarter in revenue services see ago pleased expenses of in segment. in quarter administrative X.X% been for million quarter. in see revenue if general before were by revenue the industries today. headwinds, improvement caused not greater, many the was even by more or chain to our for our challenges or exceeded operating XX.X% the Environmental relative third which third compared this would corporate, and million have from The profit inflationary XX.X% supply

at to an end quarter. provide These One our the I several closed we past M&A the transactions transactions and want the happy we to relative acquisitions to closed ahead, other the quarter fourth in I three of am of to activities. benefits the months. us. on transaction at two are beginning our update Before look providing closed third two report

work are as projects in additional importantly, additions our our the to our acquisitions. new and excited markets. as these two businesses technical for we more increase these helps internalize waste Crystal-Clean rate result processing containerized as now non-hazardous these very wastewater can U.S. the a lab as profitability the should about win Western treatment of field First, internal These of such which have well We and operate the acquisitions capabilities Most projects. growth offering. tech density important field family which expanding in practical build also services provided

environmental quarter growth the impacts we lost growth that to time though the services Now we the indication XXXX XXXX compared hard We behind to outlook third hours XXXX. COVID-XX forward for an is to the working quarter of even to pandemic manpower look during our discuss put our us. are up In of our and compared were XX% approximately future. compared the achieved third segment, our

the confident to that we can current effectively we there While COVID-XX, continue and are in to are revenue the risks of Delta environment. growth still relative operate variant drive

we quarter an From fourth our grow facing to and continue and revenue operating During to waste logistics, expect standpoint, digit margin chain segment environmental face expect disposal percentage a XXXX. been quarter, at third-party single to fuel, issues mid other pressure inflationary of and continue the we to to items. for the have rate compared containers, services supply fourth

We are non-hazardous fourth beginning working hard the annual to counteract internalizing processing the implementing by more impacts waste our at the negative these of by quarter. items and price increase of

customer operating supply QX along to our We waste Group in segment perspective, what fourth improve our quarter. believe grade us with into to are a will base customer light that pressures the streams, of to compared cost beginning of as acceptance increase experiencing, allow more balanced price Despite business might increased year. an we internalization our QX than oil is the we expect have we the early of higher margin see indications oils rate with price increase, we further mid demand are in II to results. move From we typical

base year-end. our current our stable netbacks third demand our the product seasonally higher slightly during quarter, should reduced factors prices expect oil through average pricing than and which keep we are as feedstock While offsetting higher

This in reduce this next early XXXX, outages planned year there As refinery XXXX. are support supply will the of year. for base available should quarter oil of we and quarter fourth and for forward oil several prices provide first the look to base

a move the the on we in pricing oil quarter. the used oil business, feedstock feedstock our bullish saw rise, increase side prices oil used cost of upward the costs. With feel crude still third we pressure continue On crude to on with during upward

the recently more we moderated pricing and during significant has pressure on the pressure However, year. not do of additional remainder the upward used oil expect

planned, shorter expect the The completed which fourth turnarounds month. generally our turnarounds XX.X oil million gallons. during planned production we for quarter, approximately the As next during re-refinery The fourth one the two another an turnaround, planned somewhat the of be is we have and turnaround will will we extended limit beginning base quarter.

For downtime pricing the the margin expect as oil base offset base fourth profitability caused XX% of operating production still on year, less somewhat constraints pace on From planned as high well by gallons to in a high the perspective, oil. continued produce our availability quarter be XX to as to is we over volume of range are million hydrogen. mid by we

the natural negatively addition, the increase of gas the case, into quarter prices first provided the the of economy that from can higher to this assumes supply that subside. will general remainder operating not year XXXX. will continue it will pandemic our just disruptions I this cost and for recover and be COVID-XX appears outlook. impact gradually In Should outlook The the chain

I sustainability release know, let turn to step took of our ESG over recently want I first in Before a to we things report. significant initiative with the Mark, forward our everyone

which sustainability we process communicate believe tell a have the story very copy report first and the of of in can issuance to step many our find on is compelling continual report our We website. this in a ways Earth's impact ESG to a quarter the You are basis. regular our protect we that, striving communities will and helping financial people we the results. take us to positively business on the a by cleaner interact resources through we With run with the and Mark third

third the oil second or in be or $X.XX This was this revenue. increase you in of today. quarter of which record earlier an compares $XX.X Thank the continued by year XXXX. income pricing the or In of higher was XX.X% high base previous our million per in quarterly of compared of for which revenue. in income million quarter growth per the net our It's XXXX revenue services represented XX, with pandemic diluted share of the we third great morning in from a we share which income you The Net driven quarter net only million second XXXX, than row of diluted $X impacts had million quarter $XX.XX to revenue quarter environmental COVID-XX XX.X%. but to income quarter segment past the million everyone. for $XXX.X the record in not This the quarter. was mainly generated net a increase same year impacted $X.XX Good $XX negatively Brian. was to businesses, in recovery and higher of quarter

spread fiscal XXXX. Let's the of on XX.X% netback results. an of basis. or a get fiscal sequential details XXXX compared increased a increased business the a compared XXXX of segment to $XX.X $XX.X and million, SG&A XX.X% price to Oil corporate X.X% the base netback was the in increase to sales the The third gallon of their quarterly third quarter by pre-pandemic a change gallon third of gallon Compared in higher gallon. quarter the before compared before per was weighted of into spread XXXX. was collection in the compared XXXX. a of during $X.XX on year-over-year quarter This million drove $XX.X the third a change compared XXXX netback up compared a increase segment between per oil. second of quarter standpoint, by increase the XXXX, up higher SG& corporate per and $XX the gallon oil profit the segment we of third business quarter $X.XX profit net compared average removal margin XXXX to per a quarter XXXX. fiscal the $X.XX second to oil a the the third Compared used the pay million oil third to From the and pay reps, collection of of driven by $X.XX to used compared increase of fiscal the record quarter record were basis, we to expense on per experienced quarter collection used revenue expense compared essentially business year. oil XXXX, mentioned third standpoint, to the increased our quarter the in efficiency charge for But XXXX oil keep oil an of third paid a quarter move service we quarter oil were number to third to standpoint, to to From the from of our and quarter Brian sales for the able our quarter. from year XXX.X% flat and compared per From increase oil $X.XX of the oil operating our XX% prior standpoint, increased third and profitability million to despite quarter used an in by of XXXX due of gallon. route revenues netback the quarter position XXXX in charged for for third our position or oil as an to our this increase mainly in a a for $X.XX spread during by in to

quarter. used third-party of cost during increased the also expect, oil might you feedstock As the

increased for feedstock was this of this for modest by cost to demand cost only the decline a material. the $X.XX quarter. this the reason However, from quarter in increase per third second The gallon

was During third-party of compared environmental compared to an The our the the services third of XX.X% to quarter. let's of of on increase $XX.X in to XX% third business the compared our increase of revenue The Mow $X.X saw XXXX quarter quarter the revenue quarter. by discuss the our reported to lines ago quarter, due the feedstock year of impacts we lowered mainly third purchases segment segment. the million XX.X% of XXXX. business of the pandemic second quarter COVID-XX environmental million, all services the volume increases in lessening compared to of during XXXX. We third

and costs improved of primarily during XXXX to oil impacts and containers disposal costs was XXXX the costs, were fixed used as fiscal XX.X% our XXXX was higher. or growth. expense business XX.X% of wastewater XX% XXXX The revenues COVID-XX during quarter a due quarter which the produced in increase revenues costs margin the mentioned, leveraging increasing quarter quarter cost compared by vacuum, third and third quarter compared field the before profit of by the for driven in services XXXX containerized the Environmental operating was $X.X higher and million to increase our decrease and feedstock cost company operating more to fiscal XXXX waning or a items fiscal due antifreeze with was partially an due in the lessening year XXXX businesses during fiscal margin to to Brian just waste of negative also services labor health mentioned. the SG&A third the XXXX. to third of COVID-XX the of of As welfare of million XXXX, impacts quarter quarter I growth XXXX, XXXX. margin The third for was This quarter compared quarter to showing corporate led transportation-related to by Total $XX.X higher third expenses pandemic for XX.X% operating quarter third mainly which the business the increased compared of XX.X% such offset due results Operating the pandemic. in increased compared in of third last from the to in costs, areas of result mainly also higher activity as of third third services.

by than income the of second was the the for third of company's compared fiscal Our our The third higher SG&A year $XX.X XX.X% overall the effective of the temporary XX.X% absence well expense XXXX. XX.X% of the was tax of fiscal attributable the compared and record during third the match, an of the year quarter consecutive to XXXX of to corporate third of the year. rate of EBITDA quarter up as million quarter previous quarter, record million bonus of This profitability and the EBITDA same in represents compared XXX(k) increase occurred reduction EBITDA $X.X $XX.X million $XX.X suspension of fourth million of rate quarter both lack increase in quarter to consistent was record to to of driven quarter or reserve ago was increase an as The wage is in XXXX. the as compared quarter previous levels ago our quarter. which and from XXXX. principally XX.X%

for acquisition in the $XX.X sheet. hand an the on an cash quarter $X which million a third earlier. at of increase despite million the balance in end during million at quarter, We Brian Looking $XX.X outlay of the mentioned balance of of cash the had resulted cash

the liquidity of cash cash XXXX. operations operations our We compared borrow XXX% Our in represents of primary generated quarter facility. This and funds sources credit bank available are to from quarter third flows for the flow under the increase quarter. during revolving from a to million $XX.X

cash the free generated $XX.X third third of of We compared to XXXX. million million during also quarter the $X.X XXXX flow quarter during of

we As acquisitions. multiple recently closed mentioned Brian earlier, on

$XX annual these $XX We in approximately contribute to revenue. businesses million million expect will

conditions. integrate our having to questions. call the margins with impacts in which our us market negative potential working segments take we the the can to the favorable thrilled our the our as This acquired our identify believe oil improve hard will we business environmental Even work services and mission. Julie concludes to now summarize, To segment turn combat to and of the in help businesses, continue we on other to targets continue execution take prepared are achieve ability are your remarks. business inflation we acquisition restore we over to I our in newly business and to advantage the order is

[Operator Instructions].

with comes Michael from question first Your Stifel. Hoffman

very much. good you last the and Thank than quarter. day Brian you are having a Mark,

Michael. Hi you? are How

they Good. oil, be of clear, us gave you push and call, XQ performance, X.X quarter Because Finding maintenance XX Used part to in frogs you XX eight when schedule as my the days say to here, strong XX days the world. fourth. of we in just all did a the days in second XQ? had into of to

to right No. But miscommunicated QX. Michael. We change have may We didn't play we turnaround anything, are our on schedule. relative on

Okay.

got QX. we which of always in this the just year, a pegging do We end towards

So has nothing changed.

took But three. downtime we in

Yes.

Okay.

you So you took had a and really more the downtime? comment? good quarter That's

and We all not it Yes. it's like beginning a QX. pushed into produced of And we still record cheated production.

been have were mind for of little how Okay. than because you for your and pay where the oil the philosophical. if you are is, XXXX they and actually the But IMO? quantify charge were prices you oil impacted scenario paying oil? IMO This sense is this a was My has next can might in between less question shifting

not marketplace. on Absolutely, marketplace. a bit in used $X.XX call. at some talked now. we QX motor may to that is No There used correctly, demand winter If to oil are out oil. actually normally look seeing natural it with oil going little normally more fuel. out lower would But am supply, $X.XX this like it are a up Yes. converting the waste we I gas for is months than about and and the in for for pay shooting bit math we would the the motor we the ample lower price remember doubt. than still I pricing I motor up we in seeing pay Michael, of a pricing we worried type these see crude it's

and still have supply a getting at got ample We good we pretty are it price.

I we we the oil that talked business over have segment, fundamentally helped driven about in mean, long So think a has by will fact the lot help XXXX IMO haul. the us shift our the and

structurally, around we that, side of because oil we we on the are base And at flip were the seeing activity week ESG out last So conference fact base the the molecules. have hydrocarbon of our to the purchase desire recycled lots the of and and oil changes. that

we more good the demand of that sustainability. about on are because really fact people feel So focused

the what on our way. oil we harking think to have and are call, base talked I to headed not So think, we QX see back that discount I about us to love would I

would that interesting. be Well,

be some seasonality am the comment I XQ. and spread. script, understood comments flat the on supply normal some the we right So in strength was should the just seasonality, and level. the so in the between I to sequentially But the be normal do demand starting that you of expect

compress it starts neither compresses expands in XQ? to XQ and So then or in potentially again

Yes.

uptick bit spread. We a little of have an seen in

are flat of this last relatively and because the continues. a posted we net lower. that's expect to that expecting going feedstock, do is that driven Virgin is it in heard hit lot much think would We the week we by if going season. period are to fall spring We spread QX. that and that more But because change into heavy the what net, more Certainly, are diminished paying be will the be probably turnaround not conference. a supply pricing But the they at for refineries seasonal demand where fact of

that So into strength some on headed and that pricing. supply will I us be because to certainly give expect of muted QX.

Okay.

the have it. of We side will to fight motor used oil

Yes. And then you have the cost. operating

I is hydrogen as As -- mentioned,

Yes.

Occidental should at year. plant Falls shut feeding December our base latest production be It cost Niagara will down. the year allocation had least Our still We reading hydrogen is outstanding XX-plus But million our plant the in report. of chemical one are us. done, our was for literally going vendor we that was a in an on gallons vendors so was that that to QX. us produce the oil the for

Okay.

about of an inflation. particularly lot that over Is ES issue comments is the things? Or item Your there business? one a spread is in that

map, I third rely kind on parties. over all of know, lot as mean the it's Michael. of you But a we

that are We can. internalize possibly are seeing much to logistics hard working But cost. heavy as we as waste we of

disposal are seeing We our costs. it certainly party in third

seeing labor. on are it We

should We to seeing mean over. are it we tough to it the we increase a been got support are our done we customers. sticky. and on it's A seeing fairly got it disappointed We general earlier. I we over. be done all have manage. bit But that didn't. little It's it price have supplies But

his point sticking Mark now. this seeing remarks, are about As right X%-plus talked we that's in prepared at

increase. what with are we price on the did we pretty happy So

you time, probably all as all containers, as up far have of containers Another the the so anytime seen have area, steel containers complex, our materially. commodities goner that rebound

extreme, Some to XX% are, increase. of it's the of them in some not are but of them all them, XXX% reaching

And bound. some it have we got

to Hard get Michael. equipment,

XX. improve. sensors. because sure of were job get have it's now to trucks other our beginning a we done spite That's of But am one this. trucks point, got that grind in industries. have people customers our and excellent had you all an at We from parked XX-plus down. about been heard have I At that We servicing we couldn't

we house work little because the way staffed a and are and We hustle get of our get people bit out done. short pay the that

on work sure. We field, that's for haven't any left the

suggesting four as hear. then Maybe you Mark, the it the what ads four should Divide we should by and and million? margin do at to do allocate all And as divide what $XX to far good predominantly? are week by XX thing? in ES we And that's Well, that?

It's ES. of would of ton little but oil little There oil of with collection one from just revenue mostly a probably bit Yes. that. a deals and a bit be not

On So than what on XX% ES. to probably in that. something in depending low EBITDA that XXs, acquired it's on we see, margins, mostly an going what we range be the basis like

some obviously, Michael, work with new any acquisitions. we have to do, integration

So prefer not I would to give you EBITDA target.

Let and us gives a we an in get you a oil It out going add though. permit, California We trying to asset has non-haz permit. we do consolidation because will has haz work And California, marketplace antifreeze. permit. we are Great our physical love the into assets expand us to that in something has It soon. that it are asset

to feeding bit product will money do We logistics and Coast add West pull the hub But really business for that start feeding which we some we save get more that us which of we have location a quite there will our out got branches are going off to of most to an over work begin to a deal us there. asset cost. out will will would of long that grow haul. of cut location of our That and

Right.

Cole? referring you to So

direct They great third-party. is one other field go goal much that group, as can. the to a got which for we thing. work as try like other and East a for and of have is that United the And internalize going do West the same That's us Yes. company, generators lot opportunities small waste States look us. out on we to services will across the possibly will Coast and a brokerage They are waste technical midsize just

Okay.

And a consolidation capabilities. has non-haz bought down wastewater plant in the which Southeast, we

We will that be of launch port the port location Miami The recover. cruise will work area. out supporting

party to in good work us. takes waste small it that non-haz be fits which back. then And will generated with a we So position in get

Perfect.

that allocation. any was the Group any comment their that's perfect degree, one To And sale of was would of September is Digest So rethinking around large Are conference chatter in possible that and you of you conference assets? EI contemplating a Heritage that of on some that? include The your a they the all? can late their shareholders of portfolio which segue.

on can't Group company. I focus Board get The Heritage our we having creating is shareholder this and years the them job to I of not as Group. the shareholder. continue actually for thinking. have the of what a long in is been on our Michael, into deal value. Heritage XX Certainly, am And term great love to part

Okay. job. It's isn't back, to always your wind Thank and very at you much the have nice fun it?

nice. can I back Yes, it we operating is wind wish the standpoint. get at our an from

And your Jim Needham & from Ricchiuti next comes from question Co.

Hi Jim.

the quarter because were you you guys? to do ended stand you Hi. I most acquisition-related of, questions the any to feel just Thank now? some just in to you Where M&A with that was Mark, quarter should whether last could And acquisitions. called How out, I in are additional a there little either did in allude, those? the of are maybe you Yes, talk expense or side lot think, answered. you call you. wanted focus a bit the on

three. I But will Mark. we and to take it going QX first are I we it call. year. these the have the as focus kick the will We part over integrating conference the on We just balance down to to pipeline alluded a end of on at certainly of to up long the slow want here

them. but three pursue more and kick as something pursuing are business done And five scale over to looking those few getting far acquisitions goal another a And that are of are continue So between. XXXX. economics to Mark. to us for we we are with we always, even to But I going related will could bring

be only Our the as would general the ledger, that would that we in $X.XX of most purely And closed. related we accounts related to our have one acquisition about be, that them, deals record million. Cole, cost, of two we

other you stuff all add time the transactions. million all than it's by the it legal up a probably for all little less add be the we fees If up, $X three those and

you sounds close Got curious, I long you before Brian, into sensitive are market? active It about whether in an guys next given to folks year. in, just pipeline. an here, environment am am where just the able would kind like to you we And more a So got you these the bit of valuation But talk came it. understanding deals? thinking given what's were just I happening folks how these are little curious,

have years. say that by not for these the companies we managed would that being deals X.X I banks, had two Yes. investment dialogue were both of with

how long takes entrepreneurs they have on company selling trigger it to than willing So often more that a the from not to a grown scratch. from to position in the that's get pull be

it owners to trigger. battle an to the the emotional So is pull get

build cares time takes going want it be good with are to relationships. They make an people in operator hands their about that to So sure to employees.

So XX us takes it. closed it only to two to And get these do that moths years it I to takes months guys it t six closed. and to would say, get get on three to you agree to another average then need

typical a quicker other one investment managed by an they a it little and entrepreneur. had The bandwidth bit being because deal was more bit was than little the a that bank was

it a little So get we done quicker. were bit able to

M&A hen years. we two of Director a little than look backwards, of you add the And kind for position more

of We So on to was we little quicker now months while right the timeline up. because months were the six pandemic. got time. mentioned and the water XX so these the or a really out at market fits worked with this take the M&A mean, some dead in for you time, probably have bit I Brian seized it

think my I based the good think only I you executing against But on is well, business is of great of as the how we is, part that are interpreting are what time So deal. gained. last fairly as way

have to we So pushing got forward. keep

going some some the are turn closed. ones here coming on will We to focus on we But lose it after of that, other integration these months. in getting

Got Congratulations, way. Thank it. by you. the

you. Thank

Steinke from next Your Kevin Barrington with comes question Research.

Hi Kevin.

Good morning Kevin.

is that single on factoring acquisition XXXX wanted and growth the environmental contribution just quarter organic fourth Brian that? my Mark. in Good the are you fourth Hi. quarter morning services mid for to guidance an Or XXXX. mind basis? the the versus to I in digit clarify in

kind you be we think give when set mid I that number, for, math, the organic. then be that in the revenue numbers much you same heard to that but if going in the be a the single would thinking, growth Obviously, do you different. would And not it's range. the answer am digit still are math, do of I you range won't

Right.

Okay. Got understand. it. Yes,

get into do able inorganic some That will high digits. define original The to organic. skewed, single would on depends we was you might be guidance. how what the on and high purely not to it Best

I agree. Yes.

right. Okay,

of think maybe Okay, some end the in you you thought quarter? but understood. approaching have more we the be last by might goal services, improvement that little there environmental mentioned, pressures obviously, Should the quarter. margin inflationary though And the going sequential a is the fourth in year challenging XX% you in expect that than to

it, XX%. been given sure we projected feel everywhere. We Yes. our I focused inflation good have and that am tell bulk sticking we get about field to we of are on not we increases to seeing and of because that the are the is go the worked guys there the that hard make price to can you

where I improvement going So get over am But going QX. we we sit say it not feel is were in are here to we and good. be to going XX%. certainly to will an

Yes.

certainly not we that XX is rough possible the Brian, yes. but there. am some at they not do just on of you where to the a a contradict in, little is percentages thought on are based to least the come If weeks chain going it more to But I supply ago, will some be of math of disruptions am I there going forever and the saying were things little to stay that to more transitory. leg going a peace that's but mind reinforce

get be will it work So hard that done. to

suppliers. will We pressure pricing up. need that make and the products there. from have It's inflationary issues the even dealt we get for and Difficult we causing difficult the our people we is Yes. and in up conditions what out think staffed which based on to transitory are with QX stretch to hearing QX, go

Right. Understood. fair enough. Yes,

what Did Okay. re-refinery? capacity at utilization your If that? the was give just you not,

into put remarks. I give I meant my It am to sorry. I didn't that. was XXX%. that

Okay.

not take that quarter But we yes, with you expect, all that quarters. am Brian on which that's got another we back add around year, record bit QX, hit we based saw what's through seems math BS quarters, but longer for far more you have so you an really I probably them will you Maybe turnaround, if extended know, annualization. our because phenomenal tiny usually higher. number and the this larger is going And it capacity and three year. XXX annual that's whatever are it's sure up, mentioned, cadence probably production. remember turnaround But right on to is the are we seeing lumpy why we three all this are

Right. It fourth into quarter expect back, turnaround. to pull pull with the will the back

right. All Okay.

believe d I sequentially. in used used what enabled third-party oil will the mentioned, logistical purchases, by think lower what lower I in to that? the getting maybe that I think, comments used You challenges plant. your volume so much? third-party experiencing mean, that buying you oil are prepared you to some But XX% of I you for enabled

I mean our with automotive our have, vehicle is in that maintenance initiative. to build focused or goal general

quarter. we sure think about are talked it we I last pretty

miss when the using and last beat. some one we not route low that are to didn't added and are would route away we we had is better right going a and I sales collection. whatnot. year Usually, driving efficiency. Again, is fixed. going a it expect we comparing people and reps, several We come just, are had that our to oil to But be is oil pandemic back furloughs we of of you And you mentioned part service when

efforts third-party. just And the basically have as direct generators, more and win with it's line other and just customers our is the in be to collecting more to one opposed used them oil. using program that having with have So collect a more relationship

of record don't even a down. They might having easier. that But hold third be from So annualized party, that are to to on to that a the expect quarter, feedstock an the are summer to XX% be we whole re-refinery sending looking about it's overall, continue basis there only forever. drive low. sell we And little in usually

that's that's for all great, the I had questions. Well, Yes, for Thanks Great. taking helpful. Okay. now.

Yes. Thank you.

Thanks Kevin.

at End this time. And of there be there final are questions Will any remarks? Q&A no more

No. Thank you.

today's Thank and conference gentlemen, concludes you. Thank you Ladies call. this for participating.

You may now disconnect.