Heritage-Crystal Clean (HCCI) 3 Mar 222021 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Heritage-Crystal Clean Incorporated Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] Some of the comments we will make today are forward-looking. Generally, the words aim, anticipate, believe, could, estimate, expect, intend, may, plan, project, should, will be, will continue, will likely result, would, and similar expressions identify forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks and uncertainties include a variety of factors, some of which are beyond our control. as as and the representing speak rely should future. statements them on our forward-looking of you today, not These views in call. We statements to obligation this undertake update no after these our refer that our Annual well Please may our posted more affect for release results. our earnings SEC the detailed our filings, description as Report Form of XX-K, to on as website a on including risk factors our Investor website from obtained please Copies taxes, of earnings EBITDA Relations SEC EBITDA non-GAAP or by financial section visiting may before and amortization of use call, are certain these that measures. the the may on Also, or note be interest, we such and adjusted documents measures depreciation, this as to Please GAAP. see website financial reconciliations our for of these measures non-GAAP

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

morning, how Katrina. which with additional record-setting million, year but $XXX.X total for EBITDA record I the revenue $XX.X the produce fourth-quarter and provide expectations to Thank and team, million. revenue, joining Mark EBITDA performance. of of investors will Crystal detail, Good produced fourth fourth On are behalf you, We thank adjusted a EBITDA of and quarter. during exceeded record quarter helped us entire our let full want pleased Clean everyone, we know today. you results the

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

our with Oil Let me segment. Business start

XXXX, to operating to XXXX. revenues Oil of quarter was million to XXXX, mainly an in revenue of The fiscal increase During Business due in quarter $XX.X quarter improved to of The $X.XX X.X% due sales fourth XX.X the points during an the the Business compared for percentage XX.X% XXXX. increased higher the of paid the Oil XX.X% margin period price increase fourth compared fourth and fiscal to quarter of compared oil quarter XXXX. our third was to the the charged same our netback the per of per XXXX fourth on base $X.XX the operating motor spread margin of to fourth compared segment between mainly to quarter compared netback the XXXX the oil gallon of by gallon and to our in oil. base in removal used or their of increase customers

XXXX, during quarter. shutdown that the pandemic, And COVID-XX turnaround. the extended planned year our a quarter. continued took our shutdown per had base the than the always quarter, due to an during of during in has was downtime to been fourth team XX.X produced since approximately XX% had the XXXX, which we've oil, several well pandemic. re-refinery. due execute we Remember taken the It the before fourth once to in extended gallons the of timing years re-refinery million unplanned second Our intentionally we our We impact fourth of of less quarter significant years

We years. X We're the over demonstrated cadence the have our returned very operation as of that XXXX. with to consistency past during now re-refinery pleased

revenue XXXX. when to segment, same XX%. or compared the to revenue move quarter million, relative million services, also fourth Environmental now before XX% to results fourth well the be corporate quarter as ago prior service and operating compared and for to our Always and exceeded the exit We The impacted to administrative expenses selling, quarter quarter container improvement of the compared transportation of XX.X% in in general to fourth segment. of million million see year the on Labor $XX.X in profit that the volume XXXX, $XXX.X XXXX great was The across in quarter Environmental increase revenue we was costs our compensation the continue revenue pandemic. disposal-related the in mainly quarter. the year increase due increase for demand the percentage increases was of the due Services revenue, of the from to expenses, an experienced insurance to lines of see or staffing higher positions of in Let's and $XX.X In the will quarter. to XXXX, worker's our a Environmental decline Services mainly segment, segment revenue the XXXX pandemic margin the for majority continued or for segment. challenge we're compared expense. the Services to $XX.X of the pleased our higher XX.X% was to as fourth vacant for as by X%

want lowest the has personnel. to given for However, of count of team most pandemic commend tremendous case our turmoil our February. in the I'm proud the report happy of achieving to caused meaningfully company. safety lagging metrics our the declined history performance Last but our COVID-XX that the our as I very end field important, indicator We're of has

great we like our to quarter from perspective. Now start revenue future. Despite XXXX that revenue first first the January the previous to we of I during look several weeks the still than a to have basis discuss month fact generate on in forward our growth In Environmental the pandemic, Services for would we quarter. more experienced a our to of COVID-XX experienced confirming managed year-over-year segment, for outlook the a cases first double-digit any

from revenue percentage of to with second half half in growth we half the of the costs year. achieve steady, first results first slower remained XXXX, margin as of overall we to the year, face the XXXX. during battle tougher growth comparable the continue Assuming economy low double-digit expect expect an operating to higher US the during From we standpoint,

Since only of factors throughout worsened that quarter to in the higher our anticipate parts While quarter quarter. of Environmental we price continued, first the Services not costs and the but the fourth driving fourth increase In response various successful, these did were first business end of expect the in with were was not segment end range margin our low price quarter. improvement gradual a higher XX% quarter, implemented of during throughout the during costs, operating we increases we in the some implemented February, first the to until of remainder be additional the these increases year. not

we're or expected. to stabilize segment the segment expect exit We with Oil provided of XXXX. inflationary fiscal happy Business From XXXX operating at margin condition as to close perspective, start as XX% an

into few stabilized past pricing These into going fourth and production some on oil the a In remain excess and into posted pricing. expect market supply remains From are prices seasons. and summer raised moves seasons. and supply runs additive busier balance. consistent bring base the the XXXX, export also market the busier downward spring moved quarter in market move pressure customers summer and in base producers the which moves base response response, the we oil to put market of provided standpoint, improves steady several weeks. The reduced our Virgin to driving Demand an have oil producers sold During their it higher supplies spring prices. position, to oil the oversupplied pricing into back the Virgin we into crude from as

generated us the will crude will in also of to factors of the on sheet XXXX. the the swing, two While build to I acquisition-related full we utilize oil our generate to combination allow an are quarter. our from on to I'm prices balance happy pressure momentum the the the look for during that activities pay just in we report to our during operating half mid-XX% transactions closed put oil, discussed believe margin first continue higher as range strong fourth we

of consolidate capabilities. own These allow and non-hazardous processing. to we Mark processing will X quarter continue will services. US be the current drum will be the growing now facilities, capabilities financial offset us focus expand number to our help of quarter at of only We our become operational take businesses a operating XXXX. not Two third-party our commercially Our also wastewater, should have and these second through solidify cost It that, locations and which drums With ability on high the results. waste treat disposal us locations. waste of but will fourth during footprint to operational

It's in per common was XXXX, the fiscal for working generated we $XXX.X increase days XXXX, share in quarter a of quarter. our the with comprised of fiscal million sales of Business $XXX.X of Oil to the of earlier per XX.X% Brian. to shareholders $X.X our organic billion base growth XX.X%. attributable speak working as negative compared and million in share pricing XXXX Services with year revenue in impacts year income to income years was revenue well In to XXX XXX COVID-XX great fourth revenue, the prior fiscal the working on or oil compared compared of days, everyone net The $X.XX diluted or our approximately improvement recovery compares revenue segment. day to or XXXX. Environmental was to million, company's increased diluted an This pandemic, to Net $X.XX due inorganic The increase today. million in segment Thanks, in year. $XXX continued from along prior basis, as And XXXX. $XX.X per in the of

the segment our Oil into get and details Business Let's discuss result.

We in large represents earlier increase year and years, improvement quarter to of and increased of fourth $X.X the to million the finished the XXXX, The our this spread revenue we our profitability a as to increased oil quarter first Fourth segment for oil on the one record on segment the a which of base quarter, the sales, fourth customers up gallons standpoint, quarter base the million base oil charge the officially X gallons also result the our the quarter oil was result re-refinery oil with of fourth what oil netback. a net by of XXXX. of revenue re-refinery This dollar was $XX.X during planned acquisitions were record a fourth customers XX change increase having compared of able of XXXX. fourth price approximately our the Based quarter. This volume increase From margin From performance their paid used prices change million oil in the the our shutdown well $X.XX the we in for X.X% was quarter. quarter the gallon removal XXXX, used during gallon effective fourth Oil or by quarter, of down to driver million charged pick As week, fourth largest by of perspective, or third the the production increase as to XXXX. pay XX.X increased value Brian per compared only sell on oil, as percentage production. base netback the to both mentioned I'd for driver of because XXXX. of quarter between oil per main $XX.X million base Brian base fourth basis. Oil XXXX fourth of was their what This lack over nameplate customers revenue XXXX revenue fiscal year. which in a segment. offset from to XXXX increased XX.X% gallons the per Compared fiscal a along we the previously partially of quarter, used we to Business revenue, with in acquisitions. during An was in mentioned, X.X the mentioned. $X.XX or quarter this their compared with the quarter the million of the to in gallons of compared less of past growth was Business to a XX segment oil during paid as quarter extended million the fourth operating the XXXX for million is beginning XX XX.X%

XXXX. Now Service. the $XX.X Services increase of Environmental let's improved revenue quarter an antifreeze to discuss businesses, $XXX.X fourth segment The of fiscal million the Environmental mainly due was of containerized wastewater quarter compared wastewater well The or our million, as reported during vacuum waste, pricing waste vacuum. increases containerized as and in and and volume parts cleaning, increase to in revenue XX%

was prior overall Services revenue acquisitions a In fourth or XXXX X.X% the increase. approximately basis, per $X.X On quarter as of day increased million XX.X% quarter. addition, revenue growth segment result compared to Environmental year a sales working approximately

costs. to as compared for before year SG&A well percentage earlier, Brian machines corporate higher cleaning profit expense XX.X% XX%, margin revenue decline the expense The as as was by higher parts of Our driven in to the ago the in factors solvent, along decreased quarter. with mentioned

price this a segment offset the we experienced not implemented increase enough Services inflation we businesses during the extremely in segment the during across was most quarter, While quarter. of high to of Environmental the fourth the beginning the

in to and company's compared the tax for corporate SG&A was expense offset to as increase compared by rate driven to ago by of attributable year and was SG&A the XX.X% offset record quarter. XXXX. to higher also fiscal SG&A represents and XX.X%, XXXX The increase income as revenue, retirement the was $X.X XX.X% higher effective XX.X% fiscal year ago of quarter, and as tax in an of well decline XX.X% compared costs. impact the the $XX.X was substantially increase of to rate $XX.X incentive of a effective The XXXX, EBITDA diminished lower compensation XXXX, overall reporting compared XX.X%, in million principally a the driven in reporting prior is compared Adjusted by partially to those impact million Our record as percentage revenue million $XX.X quarter. revenue, was and the financial higher expense. certain reporting compared income EBITDA mainly increasing adjustments due million of share-based XXXX. severance quarter. of fiscal the legal required income million ago to financial our taxable year by adjustments increased management in expense expense, to in up of $XX.X partially fees, XXXX by compensation in determining overall income Corporate in to income year financial The in

we Looking sheet, quarter. million at have balance end of hand the of at $XX.X cash the on the

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

line growth To inflation the restore of $XX.X excited during fourth are negative strong order we're segment to and in this of our of margins is we're business, top We in fourth the with the also Services flow generated summarize, combat experiencing in compared the free our quarter Environmental our million $XX.X hard XXXX. during working having cash on to to quarter XXXX, segment. impacts million we

I'll This your turn We continue with be our ability execution capitalize prepared concludes Business segment to call to pleased Katrina and market the to Oil the the our in favorable remarks. conditions. on take questions. now over to

first [Operator Baird. Instructions] from question with is David Manthey Our

in from kind here. in SG&A just that lot saw XXXX? going corporate side, that obviously just have said we here, -- questions could. near-term on Should what we should a historically escalate revenue a talk unusual corporate about of rate growth. second, few half there's dynamics a if grow clue I but So could on modeling in that How you've of think into about think We SG&A about the But slightly it segments just the you any at us in line? 'XX we I give or of the

think approach. I that's the right Yeah,

love or I I'm team other an I legal as have, SG&A. you guess number going you're what for of as inflated some are that we have we the did. is think the to target and I increase an things, higher is incur of So much than what we'd might did management all Brian don't And XXXX normally have saying the from I as to but that would fees, again, know, mentioned bonuses

growth some it pretty then there, washer at trends. XXXX, strange And as Is like in Okay. we speaking XXXX abnormalities, large volume potentially and growth in Services a is unusual look adding project or had Environmental a you getting anything a reasonable parts XXXX the about of seems little increase normalized need there think of in business, consider? price of a XXXX is, yet bit to and base off we to more

didn't year-over-year coming beginning six-plus out No, unusual, but unusual all the that of I quarter much pandemic in make think basis, and first we're it we're last quarter, traditional induced, in quarters. a this we're comparability it XXXX. really that with in now of But these the these work items really really lot

and to XXXX, to a going that comparing is comparison. think be I valid valuable

So we're back approach, on from planning mode. management really that into getting a

prepared on that, for mean, It's I've never structure. the a us cost you around listen the the been creep, cost on seen especially in XX years, to XX remarks obviously, in X I battle, business the last David, relative like industrial to seen months. been It's we've pick months. last

and the price in in who where quarter, what of So increase unfortunately, have another the to is and knows to price first inflation the already additional quantity will bring a inexpressive disruptive have of going we year do with our for to balance generators. so we lot trying were to not deal because base, client smaller increases. be we an provider, of terms We're we

customers last So not we right make stabilize. careful know is to way. forever, this to We will treat our want sure we be to the going it

we're our business. the own And benefits the cost. reduce ourselves it of done piece it of reap adding so out capabilities. plants up are to maximize the going And But and business, that And the T&D not with the we've and get that we're costs to and the got we'll we on side to operating and can after cost throughput, running. work money of price doing

businesses there just here, going to know, ultimately? we're that. put ultimately, or on years too you think kind again on even that margin is where business. historically much you wrong should of that. then And But Okay, Brian. XX%, business volatility, operating the correct margin, be I'm for you've mid thought if where ES a segment about X segment high a And is optimally out, XXs profitability me oil about finally, talk as used to headed years running Thank about to pinpoint that's everything X you you given being think, I operating the on do

a look I be I relative we commentary could Yeah, Oil know XX% We the to in, we'll there. not going think we've going We we're do but Virgin The the spreads David, back with QX with changes day say -- some refineries of with, on. million It's XX back the and that get agree live there. like growing We run in QX, good, that on basis would obviously is know, year mean, now, Whatever a inflation, the you today. growing and mean, impacted. business become going out they think hard I up you're they And by it's produced goal be to XX% is little rate know which lube. some do stable. good. the but to to predict. get running. tougher, are margin, our out definitely we're been business, changes our seen that Only are like back high. your looks to how very to volatile deal structural of barrels right margins predict. go had In been that's we issues harder number to day where bit to around of crew we've to structural what forward a as just last are certainly

storms. back events good markets of pandemic a severe winter last in year the the So and post shape

little of see have than we're the do back end we that out So the oil base historically We the can perform oil pricing think we as weakness still better in know in year. we bullish on the But bit to we'll the begin get fact of a business. suppliers there. we to

for sure. XX% So

with Our from Butler Brian next question is Stifel.

on you've about been I Business, Oil talking Just which it. guess the

spot for kind discount the the prices? of Is up? oil? there tightened when you the renewable to Just increased -- in any are nature demand you posted that what a your of take Has market seeing

more base prices seen spot, some know, pretty pricing customers, at fodder our seeing actually But what we we any talked above from haven't about now. remarks, prepared you We've Midwest-based. good discounts. which base Yeah, sold oil certainly, And front, as as are, seeing demand as our we're is in on better spot the oil we're

to That's do So our And but energy that certainly, we're balance so. this Virgin really refinery, super Virgin majors. like because to probably oil try industrial a exciting cost producers down with think it's to a yes, ESG. few and our Virgin our they the produce competing the cost of participate the base we oil Virgin for not quite days, oil complex, base oil over we're the energy to there refineries. the quantify base going lot our to of of The Yes, versus half year, as produce green the a versus is to not much to talking of we're a refinery. these attraction south,

just producers, an and be anyone that's Yeah, end-user lot of more. There and to story that finished. the any but the a is not of -- of going more

at you going be Okay, some and for alluded can think planned give Is on the again, maybe fourth And I you some it that on turnaround. color the look to when color can you timing -- you was the to, the facilities But give around XXXX, the quarters? again. quarter

pre-pandemic and I have normal pre-XXXX had we the that think much different than what XXXX. we or too we'll had not in cadence

to So through the happen, and happen, frame XXXX the be of saying even we planned long when and going how be, to flows And talking when this to again. us. minute it nice is be ago, the to base that QX, that's in least was to should beginning with for time it of comparable a kind QX on and turnarounds the I are a going is at re-refinery QX will going Dave run --

shorter thinking And we're of as are Yeah, normal always which cycles be we pegging in turnaround our turnarounds. will September. the have long do, we'll

the last cadence similar So year. as

still that down that year suggest And the Okay, facility XXXX? you on side XX% Is slows new exiting of new to talked of What's business. the kind three plan does about of kind then the And ES about the growth four? it facilities? in the for margins,

No.

of and growth quarters, think the couple plans that we the And a our most prefer to of we've of acquisitions. roll to markets unless talked a tuck-in it's easier think acquisition staffing I about around difficulty bolt-on have open last of branches I come the lot acquisition. lines. market. trucks, with will because our from tough don't organic We a environment in open up mean, in tuck-in It's labor and I employees, recruiting this just new much it's service in

way. to to So go acquisition and we're the that route expand tuck-in going we'll

will Back. And I ahead go Mark,

finished, No go ahead. I

Part in given less And support an driven that we're most with I'll -- it more or is areas it. where of pretty math, area dense, is those get that, acquisition, likely western any we're you or the complement get you the it's by efficient expense. But acquisition more where some finish. starts usually cash be the to most to Brian, to down support And it we do they're not, our where do likely to to attractive route. logistical doing since if opportunities of where logistical not there. have already. get that going position and our an be in If are we're cost if going greenfield, to

that around work we like run in in XXXX. to as -- processing. We year number about our processed about all into then And talked we're internally. containers remarks, last XX,XXX a prepared near internal see rate XXX,XXX We of get to we on that going were

in prepared the receiving be in -- bit They facilities months As here the we of to the conference drums, their start difficult had to we the lot We've lower remarks, T&D a costs, X I've are to permits commissioned to need we listened that talked got fairly have really quite you And ways. two have process third-parties. don't about soon. and we've will a prices place. with last They've mostly our deal raised calls. it, utilizing all over because you're when do will

control capabilities from get standpoint. built our So our more, so to a cost up, internalize destiny is we objective own can our

Okay. for just if we one tax last And then for just our put bookkeeping one side, XXXX? in, what can be I rate using on should the

been number. I we before, have when Brian the spoke we've think I XX% guiding at

down XX%.. outlook of the and a ratcheted for I'd to profitability permanent items on the probably income base, larger lessening it Given those of just some impact

XX%. Thank for questions. Great. my taking you

Thank you.

And ago doesn't all that income there increases we X, are tax months thought else I mean, different corporate anything stands imminent. rate assumes, from XX were when

opposite think think all the we I now.

guys. So that for my is if embedded, not

Thank you.

is with question Ricchiuti next from Our and Jim Needham Company.

just just about really I the I from the to time, go you on an an ES inflationary think haven't [indiscernible] made two side wanted with, this is exiting seen standpoint. to and Brian, in you comments you environment back said some that

to you just year? I'm do trying kind terms as and of on can to of that sense what to confidence get a ES the increases this think the of much inflationary kind better you get So the during pressure how margin operating in to we is if give

day. your term. increases, done I mean, I to mean, confident confident of having near stay it's a to sites, their third-party, We very that waste own you're to they're it, think we're fairly of provided begins price streams. inflation with every But ahead feel stabilize. least at difficult lot a I when we talk the disposal

prepared which talked we're the with. been dealing our will we've we match increases price again raising in that As remarks, quarter, prices about this

prices. normal about care we to some with provider be our is ability we our because get predatory, and be will the to value we not have the think going cost now. growth out back at And to don't raise We We to there price client lowest want don't and this base permanent customers, point. the we're just

business. out don't of we want to ourselves we sure price So make

point we for we're and like And to the be cadence as decision. normal that and increase our do increase on price will fourth probably the continue inflation we make obviously back at And that we every do price So year. quarter, we going our we'll to it. monitor approach a in analyze QX, will

We pressure don't the our XX% we're because out lag provided. that close get have So to we to increase that always number through going confident year, continual of we there. the price can to get that balance inflationary see

think for it. additional the ES? look mentioned you've 'XX? about a Did you missed terms meaningful pipeline And the may we additional was -- what's like M&A contributing you And to I any have of in M&A it. QX Got potential And of contributions acquisitions. as that done recently

about and do Yeah, meet. the impact. I'll operating you never obviously, easy we cost impact. standards But talk let Mark revenue when It's I'll we want to about have acquisitions talk the that

at our now, So done. for doing projects example, capital suspended acquisitions, acquisition waste we, the capital get we're one of treatment the so to we

So We cost side we We're revenue does especially structure. this cost and tremendous that logistics it. the opportunities line time revenue front, it structure, why seeing the on companies. the in to negatively bought market. take impacts love that's your out But of

helped changes as our make the profitability we bought the our them, make you And to had changes to profitability quarter to revenue we going we'll the the made. fourth we in as were knew the back we heard be So probably plants. and get

Mark let I'll on So revenue. comment

numbers From $X.X million it was segments both line and was on over -- Yeah. than a a the a million. standpoint little top ES X that's than combined less more little basis, a

majority a was it So vast up there.

opportunity, a bit Just third-party. component. in few may fit But get oil future going a we're on acquisitions the have when focused if also look change at we're these deals, still Brian it Clearly bit Environmental related clarity great especially is little obviously our bringing out. just gallons we little dabble we have when of Environmental knows, on companies Services it, get some And right but It's but unfold in getting businesses. of on, the market segment further I'll mentioned more might oil and now, smaller a a the us, reiterate. where a oil. to as clearly, for we of the then the who again, how them But in depending are

it So fit. still does

Barrington Our is Steinke next from question Research. Kevin with

transportation to a initiatives here, environmental the So mainly expenses. services, internalize waste and And year-over-year basis you the higher disposal-related your and on called due about talked decline earnings in discussion you've to release more the margin of the out in disposal.

you can to do half is is much something target into the how XX% cost So the of getting second from year? of help think perspective, that into kind factoring that you're the by end a the margin that going year? your of And

It's it points, factor. Well, XXX-plus it's certainly think they definitely hundred. a maybe basis couple a meaningful, helps

expect business. non-hazardous, our and you fit is is scale when getting on we're depends really or more near-term. this come on through like what general Brian more fits prepared of has. start in to have and -- of And the away. fixed we it heading trend the a the We And the So costs not certainly record non-regulated mentioned industry the glove in some more demand of his the And you're in here these is really with that remarks, a some the But there. two to developing. right sites think

And you volume. build to so need

through getting, from and it, as just much generator process start standpoint customers, having way. can sure get part sites not we but that So of making so it the to a you're it

margin. a and that, Brian on there run to So just on comments you timing get run year get this we'll done. rate matter to But issue, timing confident. though, basis, we're his a made rate On that's are pretty why there. we're me, get of, when to that And a going going it's basis, well,

a All right. would helpful. That's boost there. Because that significant yeah, pretty be

Okay.

pressure market upward you think used term? crude know oil side over that's I the a you're But higher longer and know, used prices. that's on XXXX? benefiting what just costs on impact on you from and you do some now still comment any, the and cost oil seeing And IMO having oil any just So

look Yeah, if that And definitely. good. certain lot We've we to last are even been seeing we receipts XXXX, of than not trends the cheaper that's in talked IMO about price aggregators historical. I the motor a because no issues calls. relative used we've We're relative Maybe been benefit we from the this oil over volume, used had with cheaper historical the at re-refinery. more think couple oil. motor we're collecting And than of convinced have We've crude. XX% supply acquiring cases. of price crude, of the ever XX% to to at to are able you some

some motor days So definitely in fact, used motor plants. about structural Michigan, the changes used market. of asphalt ago Matter talked oil banning and of XX burning have the seen oil

oil, that focused that see issue everybody seeing least administration of to use be people now. of and is we at and greenhouse is the current are you a support on, directed going the to better So the we it because in gas more as because it's ESG, molecule re-refineries, think more and the

Yeah.

IMO it's And so XXXX. beyond going think I

that use molecule. overall, an So some the makes way an in efficient move economic cases It beyond regulatory even transaction. to just just to overall just sense

from other substitute it call want one-time with and use you that, away cleaner If to that fuels.

decreases We volume little But January. bit in back going mean, a up. back in pandemic-related up some saw I and fourth, miles certainly the that's picking the driving again. are

collection the fine standpoint. from to motor be expect a we spring So oil used

noted, annualized. helpful. million -- capacity the you And re-refinery gallons as nameplate the increased you to Very you lastly, Yeah. of XX just right. All

said You've produced, XXXX. million I you in think XX.X

of oil? So, production safe year flattish XXXX, assume of base is just it in terms kind a over in year to

And to year Yeah. We've going this the re-refinery other thing the it. have out of we're additional spending to squeezed flare. tricky that every do commissioning without be is capital that on drop we

conditions out for So what in talked that on as capacity to some had million, additional long XX not to improvements we but that X structural got and any as We welcome do the -- continue close there, we're structural as number and knock we've to of we debottlenecking that range. signaling haven't we plant current see maxed have work a the barring in on we still are the upset so about certainly to converged operations. the we're any But opportunity market look We're term. the opportunities. for opposed based improvements our market years,

opportunities now on now. debottlenecking engineers. We have a got team We've they're working great as our

structural that here this opportunities going stay. do going expand. are changes always convinced unless not So for we're to We're look we to to in to

our And Capital. next is Sweeney from question ROTH with Gerry

question side. was really my for Hi, oil taking around My Brian, thanks the call. Mark,

answered add you're the was that margin. the think just at for maybe think it But be maxing more in Brian think of capacity. expansion seen as what sort I process But I larger we've some you may the said, to behind I a would the thought And there's market, obviously, I structural decision-making re-refinery? the in which process capacity. last the XX% of you of curious operating maybe opportunities, expansion efforts But was change underscored incremental refinery. And oil debottlenecking series. out some of the oil

get Board move will into think that year, meeting And convinced it we'll discussed next year, here we through have to changes going that refresh as get structural certainly, the Yeah, exact just We're and table subject. stay. to I are the this off a Board, of we to for now.

plant We have the with do lot of the a work to commission. flyer get to

going we're focus to on that. So

As prior and streams, waters so plants, more do the We're cross-selling. some promote treatment waste ES work process I've commercial a segment talked as adding to it's even on capabilities. around going our system not to other the we calls, we're wastewater at adding to can about to the re-refinery

focus on we're that. to So going

As we I've We're to streams. not calls, prior some re-refinery system about around we're talked waste as cross-selling. even to other waters adding commercial treatment It's do promote process so to the wastewater the can the at a going and our adding plant, more to capabilities. segment on ES work

guys year, on debottlenecking going and that we'll for make the into out. options we're next So year. structural them this play the a But will doing me debottlenecking. decisions how and nothing year to going that to re-refinery present we'll done getting focus happen on this projects, have they'll the changes and this working see around we year, And

as And we'd Brian's to be the we things that say few removed you next got steps we probably that to first, comments, will we reinvest to even You of us further, get to one more by point. -- look that site. can decision greenfield can anything. let's a If tell have that even It take from it's do really would out that leg. can

bit figured I side. it then would you increasing the internalize Environmental And just side, look and on you value as is be Got theme it. staying sense. the at And the XXX,XXX. That expansion there capacity of makes But of maybe waste on of in the little And about across that response. sort talked opportunity ES terms the to spectrum? much how a the

we Well, of non-recurring XX%. regulated. and we last And take year XXX,XXX is only XX% what processed containers in moved

containers, have math, if all a of our because So kind is four of the aware. overall work And the could to thing the models. we opportunities. we you have do move that around, on are in tremendous hubs of amount now we that have Right guys other we between we're logistics the how you just

looking We have is waste directly move branches XX hub-and-spoke into the to back the opportunities branches hubs. the from the at into were centers. We're processing

to The still, move how can. additional and system our capabilities own, work and possibly on sites capacity, And we increased of just a XX% do to next we've have as now. to our know commercially as of we're waste. is but adding we many over sites we're well, drums XXX,XXX the we we our So of year lot two the logistics, intention process the

drums this hubs the operate logistics get into is XXXX. as at angle routed, it we But growing. side to we number we get will this end too. hit in move not get something I once of the we done. we'll really we XXX,XXX from, benefit think the So deeper think how keep And we going and the as can into the I It's year, by XXXX. do we working And that will then that's come just relook

That's it. helpful. Got

optimizing I business. want our cost to of the sort of side

growth getting up and very, permit projects into As in year, move plants on this to optimized We've running. get and this focused and we've we got capital them very been year. changes these

Got is it. than The out follow-up this more just curiosity anything. of would be, and

sort for through you of treatment or an grow even capacity, your -- players, up As some is there the the speed leverage of opportunity to outside process? increase some that

Absolutely. TSDS. We've third-party We're doing partnerships great with it got our now.

But We're scratching . I the you'd - agree. just would say. sure, Brian, I'm

towards sales It's can do that market. we've hasn't we it. been just approach our the is, part geared a matter typical there proven of taking of So

bit. of of we're do upside. by doing that and ton would we have We're a getting of to kind starting great just little in But -- So that as retail evidence and Brian is of a experience side more say it's just that it space. there

Got you.

non-has, brokering partnerships, they turn great has the TSDF because They has, our we're can pick partners. they third-party leaving as They're waste in our are can deliver employer. us

a PFOSS that at we business, growing tuned so we're I the mean, -- -- hard. like going And mean us, into is opportunity the too. I battery to looking for And we're emerging very strategy. at we're markets looking very we're

speakers. And Thank last today's our you. is that question for

Thank you. Thanks everybody.

Thank you.

Ladies you welcome. conference. and have today's Thank a your day. and this for concludes wonderful gentlemen, participation You're again

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