Montrose Environmental (MEG) 13 May 212021 Q1 Earnings call transcript

Greetings. Welcome to the Montrose Environmental Group Incorporated first-quarter 2021 earnings call. [Operator Instructions] I will now turn the conference over to your host, Rodney Nacier, investor relations. Thank you.

You may begin.

Hilary. you, Thank first-quarter our call. Welcome XXXX to earnings

me and Chief the Officer. are Dicks, call President our Manthripragada, Vijay Executive Financial Joining Chief on Officer; Allan and

our of our to be is During on website. we presentation, available section earnings which referring Investor the today, discussion our will

release also is earnings on the Our website. available

refer XXXX. like the Reform X. any of unknown results forward-looking operating to uncertainties that the to obligation Actual on the performance. to Harbor recent update remind to provisions affect SEC today's Act our including principal that that call forward-looking a Moving no XX, could well to filed no due as performance We in that to statements outlook. our subject Slide we will SEC evaluating Private which XXXX, risks should risks are assume Litigation with Securities and the of -- I would statements. July in We and way identify differ you everyone include future forward-looking uncertainties may as our considered and financial Safe statements, be material filings, and final known any prospectus assume

the the to call I EBITDA appendix certain GAAP directly earnings We a informational the on the that, X. Vijay, In to be will investors discussing including or to most and comparable Slide they directly should their EBITDA see to With provide and would purposes thereof GAAP believe Please now the to presentations of useful measure. or are earnings in adjusted over financial measures these our addition, from release for measures beginning considered comparable today, providing non-GAAP adjusted we discussion isolation these No. turn non-GAAP we reconciliation for like measures. why most and margins. non-GAAP results be not

it to of by highlights, Allan providing then hand us going a you over Thanks, to today. after them I'll for financial which to CFO Rodney joining our I'm business both Q&A. few and review all up open Dicks, welcome Our to begin we'll

presentation, generally started to this I'm footing I'm clients. speak those you for on you Slide fantastic we their following service saying, a glad team the through and following For a X. our of strong proud of X to I'm And by to XXXX start update Slide going excellence, to to continued our teamwork, XXXX.

Our doubled than revenue compared the EBITDA and more quarter. prior-year to adjusted

over of our the we've excess to to moment Although would QX through a said, best it performance environmental the tailwinds has annual historically. and that so an in managed I given reflects XXXX a we for seen Montrose confident highlighted don't remain few annual take intact before XX% very faster expectation services revenue map continuation assessed adjusted theme with is the strength revenue reiterate like of is basis. quarters, quarters, on EBITDA neatly growing have past growth in and QX, we to That long-term our than continued of as fiscal

the our clients person. U.S. front In so we're to we've steady in in and strong be a year, the this to terms of seeing performance seen of excited reopening behind back in other safely be each far drivers and

for bode get our U.S., well continue in challenges and to they're couldn't since here in terms Europe well developments of And Australia, but proud in than how to call earnings March, both through teams we've all of working teams seen more that our and more beyond. Our last it. together face Canada, year Montrose the this many be in COVID-related I of

that we business see So of moving let developments me some walk our forward. you through and recent catalysts some for the

bolstered our political has be been by demand, client continued we which the of In terms and regulatory is by will performance landscape, believe and policy driven tailwinds.

office, in state we've days compliance Biden's to President federal starting levels. the initiatives seen and regulations XXX related at many Following and both environmental first

XX% of would that one potentially drive greenhouse test, needs our an services assess, goal demand announced their for level gas mitigate reduction policy in economywide emissions by recently given President example, -- Biden levels client Such As validate, XXXX. to a from and emissions. XXXX

Beyond we funding as mitigation, activities bridges, large market for projects and energy, energy this, like brownfield additional identification the generation. assessment and renewable drive the associated and and roads, like to reclamation, expect such renewable environmental wetlands

geographies Regulation also around new which are proposals some X, to arise such and seeing We key Colorado's aims oil natural in monitor of promising emissions drilling operations. regulatory our as gas

we proactively have and policy are results, yet starting emissions other voluntarily initiatives. environmental not our large some these customers financial and see our reduction accelerate While to proposals of impacted newer to begin targets

depend in and LNG political a we The qualified have data environmental but if for quality priorities markets the beyond. proposed methane both by XXXX these about We effort Montrose of client. example, regulators. premium insulated product for minimum, capital suppliers from optimistic we why conviction both that emissions business. business pays baseline by largely our reduction program specifics are model and It's note and and in are swings, a though major our one at resilient to industry targets. mission participate new this our And As stewardship our our and this client's customers to to business. our reasons achieve on policies they supply like establishing the and are outlook the the these is will see our will by magnitude on a emphasis for the to their emissions continue a important tailwinds significant upside creating our initiatives

the XX to increased adjusted LTM of XXXX a XX or XXXX point the XX%, growth, segment, revenue QX anyone CTEH factors, the quarter. is favorable XX-month basis XXX%, prior-year measuring at QX and we better on us compared on grew of permitting trailing period given business the Advisory will numbers our million most to and to to compared well mix, business revenue LTM terms the focused of and keep months prior-year on beyond of running what run basis LTM, period. leverage which EBITDA to TTM source CTEH more I'll for rate performance that. course. operating million on or run we level. business importance the trailing a in minutes, see few revenue -- to rate ahead, shifts segment in are response call segment assessment this certainly XX touch help quarter a our our In of Within several Allen including happy which highlights,

COVID-XX U.S. Gulf to major a addition business the CTEH response, our responses were by pipeline results in winter western storm, to In severe the and the in to pandemic driven cracks

toward events EPA an response pipeline, and are within uptick we seeing that for recent Act reduction CEQA expertise and driven gas aggregate developers. CTEH Environmental aging in by of governments, National CTEH, the resources Quality need climate a risk announcement like to projects to requirement for for Policy from emissions. increases to An XX- and operating related for infrastructure permitting planning sector. oxide eco-services such business, our Environmental Native this American support Act change-related Besides on are power which and also to segment, municipalities, more for seeing market starting advisory demand of is plants addition costs within recent our in an the the clients see and nice to higher states increase particularly emissions. example see sector, is the continue With net-zero drive or nitrogen the margin We're or businesses incidents California announcements. NEPA, questions we requests and In the oil tribal reduced also the

increased and regulatory that starts to We're demand segment, an compliance steady on continue Within inventories., and QX operations a good NEPA CEQA expect and our project primarily focus. of continue our segment. gas The segment with have for the emissions remains consulting and organic for air We due needs. for to growth support clients maintain demand XXXX that annual emissions to second as XXXX expect strong. versus basis, And to Biden's we're infrastructure completions. very measurement management seeing example, and air carbon revenue COVID. in environmental of seeing statements, to decline analysis demand advisory a our And need of timing in we President client's greenhouse is regardless services the final

we received and Lab specialized instrumentation, term, of developed capabilities, long business added footprint. our some additional see near-term accreditations and to where opportunities PFAS both As support analytical has examples expanding our

in an including indoor air lab non-regulatory-driven LEAD support Leadership in services, We uptick the seen Environmental and have for programs. or quality also Design Energy testing

Projects and by of XXXX increase regulatory both the In as business our facilitated monitoring Additionally, -- are and and released aggressive to on EPA in from community monitoring expect demand. Reuse capabilities, an that to put is drivers. non-regulatory organic PFAS, OCM the XX ambient opportunities seeing hold forward cases, move make start very to were open slowly for large increased or are are diligence remedial and and for pressures starting for up legacy in our time timelines and environmental we example, where in And growth air quarter some in and testing lost have the we assignments to government QX up. due first our projects we force site, industrial seeing air from an finally, site teams, Remediation test assessment where and for seeing new and regulators. are by some remediation in continued activity seeing as see we investigation, agencies. nice clients, a method design, led remediation and segment, differentiated we

we States. sites what to be fire PFAS several for training We important Eastern or also in Southeastern Coal and projects former U.S.; won and with trends; the two support consider United Residuals, clean-up waste CCR groundwater associated at several the growth multiple in Combustion investigations

growth each drivers, in validating technology innovation segments terms related investments acceleration In and our the the across are environment. to innovation our business of and tailwinds of

the EPA issued regulatory PFAS is Just something standard. treatment consider Montrose comment or residence a should for Montrose, EPA public of an independent the to recently, that a as general DuPont a

effort We benefiting environmental we acknowledgment, emphasize but grateful to growth and to silver is continue take continued we there and it's believe to our capital innovation, and the that going are our the single bullet to challenging and to allocated sustained customers shareholders. our We science on for organic contributing no address and and issues. research commercialization is these focus that development,

tools growth fundamentally for so. acquisitions and we're nearly remains information clients innovation and doing and We making forward, with mid our what X,XXX that our every more so high basis investments to is completed who contribution we've seller better a to reasonable think business anchored on serve an these organic single-digit in annual the designed consistent business continue are day, them our with arm Our experts, our before. plus to to of mentioned going expectation doers

very to able year. add and been talent of to and is encouraged terms we've team by companies the the we remain people Montrose talent, our acquisitions past In our caliber of over of

into insights important new ways continue Our and the a brought experience, colleagues wealth of improve. we have can clients, to

We year, our important director is above. strategy. that very of acquisition by our team CTEH, remain encouraged the integration the at part are especially M&A strong very we're business team the equivalent with And continues of last and retention also and of or an well. the than goal of acquisition going more surpassed our level to

our group, Southeastern offerings We recently Reuse increase in the for and segment. in January, the environmental continue joining the and expands federal to service synergy, from States. robust including Montrose which really teams, United revenue of we select Remediation geographic the our benefits benefit acquired U.S. significant see services Most our which CTEH and MSE in The is a the encouraging. agencies the presence

the seeing fitting is XXXX, equally to great identified We our encouraging. revenue MSE teams are are is MSE insight very very procurement. remains and how Montrose into collaboration And strong. into The we're government between remainder their and in Montrose, thrilled between the being synergy pleased the have and of of teams pipeline acquisition terms with

So in we that. this ability remain beyond plus at confident $XX to attractive year deliver and in acquired EBITDA each our year multiples million

we expect can the going with acquisition our As and we is And execute to we strong, have. to in targets already continue goals sheet talk months. balance which ago, additional in a we few given mentioned minutes, announce what plans several to coming Allan's weeks the about

end to around you to world our all want dialogue I our discussion belong. thank you. So to congrats support. the team, investors, look We and clients and by with a colleagues thanking milestone in your year I forward great Montrose on To our ongoing you big continued these whom another thank started quarter, where to of summary, results to and and another for the

Allan. that, let over with So me to handed

Vijay. you, Thank

of performance reflects continued exceptional Our business the resilience in first quarter our model. and the strength

We performance. are thrilled strong sequential with our and quarterly year-over-year

Our core businesses are strong.

benefiting from are are M&A, We cross-selling our creative we strategy. executing and on

our Slide business strong X, growth to on our COVID-XX the performance, across during we first-quarter drive Moving to continue pandemic.

CTEH compared The quarter Our pandemic experienced growth XXX% CTEH the driver acquisitions acquisitions to of in the for favorable revenue notably client MSE. services. quarter. of increased to our $XXX.X most given tailwinds was first revenue demand million has prior-year primary especially and response

mentioned that partially process the lines, service these first the The offset of As growth, quarter at calls, completed XXX% excluding did revenues lines on the service have increased XXXX. of decide would quarter and discontinued loss second revenue of first end certain discontinued of discontinue line, to XXXX, early the our prior we in revenues from service in quarter.

consistent grew is to the grew increases three to in financials. EBITDA significant in company. Montrose's our adjusted leverage Response in allocate driven adjusted driven and to XX.X%. segment and reemphasize, and, business which year-over-year as assessed how Measurement our also an we EBITDA our The pandemic revenue revenue services. manage asked adjusted expenses our First-quarter result segment, by decreased our EBITDA seen business annual In XXX-basis-points to margin from is by of of EBITDA turning due XX% Permitting CTEH This acceleration demand million. adjusted Since response-related in lower by work business mainly and We X%. performance $XX.X both to April, and This XX. revenues of Assessment, report of of corporate XXXX. on segments revenue. we primarily higher The Slide acquisition $XX.X work to hire to we the COVID to needs the CTEH. Analysis margin adjusted across predictability improved staff, were basis. annually. clients improvement CTEH the the segments, do million, the on EBITDA and April the segment, by by to This a XXX% million, we was lower captured be decline with In is how stronger provide performed The was evaluate to margin $XX.X expanded has an are revenue resources, and operating percentage

that the to As to projects the reinstatement EBITDA the and timing of temporarily versus of $XX.X the business attributable margin XX.X% declined primarily and COVID-XX pandemic. certain expected, million to lower the lines, suspended mix, prior service been revenues, year. outset compliance the current Adjusted discontinued at the of costs had in due

elevated by $XX.X adjusted EBITDA from anticipation margin the Remediation those The growth. organic geographic million, to result increased the Finally, XX% year X.X%, in a in decline reflects slight year segments. our EBITDA the or and of MSE segment. Reuse impact of acquisition also margin impact over lines. as discontinued business costs in mix. in of Remediation of adjusted growth Revenues and the reflecting and fixed to service expansion Partly The offset

on capital Slide XX. Moving structure to our

annual payment in at of bonuses. $XX.X and Cash compared Looking of used quarter, operating in the was to prior-year the operating decrease quarter. used of activities seasonality cash in activities the impacts the A $X.X included million. both the flow million quarters flow

in quarter prior-year compared XXXX first by quarter. change increased when working to the Additionally, the of capital $XX.X million the in

of versus quarter in of in result a quarter XXXX. the revenues significant increase fourth current As the the

continue investments cash year of strong operating expect a balance flow in of EBITDA excess balancing be conversion we for cash incorporates that to expect from We on the as generation and to flow acquisition at of operations the a a of focused R&D, will in our the adjusted in continue rate expectation long-term into and very cash integration. XX%. company, growing This technology,

XX, $XXX.X cash $XX.X and million. had debt million, As XXXX, of March of total we of

basis credit entered facility Montrose $XXX capacity credit to million several as a and between range In at our The a to ratio times X.X of $XXX X.X March within against sustainability-linked under X.X structure of up our into XXXX, adjustment benefits was term new facilities times. reported million, into debt LIBOR pricing leverage based XX, $XXX borrowing X%. plus credit our point performance a to Furthermore, April, credit cost entering a stakeholders. agreement, has on which receives X.X% facility, nominal on borrowings March new reduces the to target pleased by we Montrose longer-term and financial from our expands the XXXX, net capital of million are objectives, is long new important term incentives related certain of an goals in This very our with Montrose. for Our to that do sustainability new part sustainability optimizing and our aligning we facility. while structure form revolving and our ESG leverage times, XX, loan, strategy,

three in this preferred micropayments its time any favorable value as subject A-X reminder, no has date, business potential view to preferred redeem the maturity at the cash, shares the given creation our and equity a to first the to Series for As years. instrument we stock the have flexible preferred dynamic. option We in

equity approximately million capitalization Series our A-X If our equity you $X.X total market cap, the include of the balance $XXX at in stands billion.

note, Slide predictable full-year on of Moving or It more our driven or our outlook patterns specific one important to fiscal is the in environmental services not XX. by are Montrose to quarters.

of start million. a guidance in XXXX. from results strong EBITDA the reinforce first-quarter of performance are Accordingly, we Our expect positive be and million, $XX to our adjusted continued $XX the up and guidance is XXXX currently for previous million for range expectations which second $XX increasing to million the $XX in our to to quarter annual

growth, Our of adjusted on This year. XX% based completed excluding to of Plus contribution updated CTEH. guidance mid is implies of combination organic growth acquisitions. XX% outlook EBITDA a the over to year high-single-digit

primarily is expected in mention revenues I'll second that future revenue year an a of represent with which line, the XX% does growth not over to record. start historical Looking upside toward XXXX and timing outlook consistent be we first-quarter include continue weighted at current the half our top first year year full of quarter. our to strong our forecast. attributable our also strong the outlook annual of expect to to for excess to This exceptionally the acquisitions, growth track XXXX,

be work, impacted Although lower obviously excited than We our expected expected CTEH COVID-related margins, our the year at are in XXXX. result in margins full-year stable the businesses. could over the to were revenue for than is about growth by be surge year, it is makes margins which typical and margins CTEH higher

year Given as the generates, our segments our very margin will progresses. margin each that continue the to of different articulate profiles we expectations

in our our and to XXXX optimism solutions. we and always clients. quality see exceptional market, reflects opportunities Our our M&A customers and bring services to us additional in immense are environmental best to We outlook allow our through business new value service that geographies accretive to enter deliver open an to addressable

We invest and technologies we market improve also continue in portfolio our continuously expect processes unique and as to to and build share.

all excited environmental of the you solutions for open to to the ready goal ahead with lines your becoming sincerely our brand. we're joining Operator, today. the are us I Montrose. We year for in to leading to appreciate thank want interest questions. We

Needham Instructions] is [Operator you. your state Please question. Ricchiuti Our first from Company. and of Thank question Jim

is you So the Allan. have first I question for

realized is those savings. SG&A is Just the it of Did have back bulk -- The QX at XXXX, of have Or from and up in you but September temporary QX? mid-year some those assume we below saw to savings levels temporary at been June, what in now really QX layered bit have a extent that I line looking the scaling has those in that I QX. hit that in scaled it question Should the look QX? we if cost quarter. further the still it's of

as first in we largely related to Jim, the the -- indicated and you're cost operational referring back quarter-was put to. was that

second labor costs early the the of So that temporary bear mobilized quarter XXXX. those we were in

fourth of of put beginning in the were the at year those So QX. the back quarter or

operating or And impacted not margins corporate and so so our SG&A. much largely the

are So that saying? pick whatnot what up a we I will Is and still guess. big wasn't and travel -- factor you're

that the slower there already in It has travel typically are we picks normalized travel of that quarter QX more Not second you in the is quarter. -- to up see of And been Certainly, out a put in will the additional business as uptick outside XXXX balance SG&A. and levels. an early in quarter. then started back -- the took to a we the second is see costs

put first you'll those So, the of have half back. impact we see in report full of the results. But the second-quarter costs the all year, when will been

some just you is then Ok. projects segment And businesses. question it issues the timing-related Remediation those to and Reuse for relates Thank and business and Measurement segment Analysis follow-up my the that. Clearly, then in were as business.

it with seen able extent move what in margins in to overly able you sound is I that that those up stronger gonna in concerned some EBITDA we've to what like demand? -- the So we're seeing the client that anticipating to address enough to businesses. doesn't respond to wondering guess, pickup Are that to you're work are I'm the the But you're begin be quickly picks of again. you decline

Hi, Jim. This is Vijay.

Let me start me well. jump let and in Allan as let

We've On to question, not the talked as picks business The before. yes. to are of headcount linearly answer demand to your this we the to needing linked half upright. is add to is, going about pickup? be The back able respond

We scalable are built model. we've how confident in a

accelerate, take And our to as demand so that. teams advantage of are well-positioned starts to

bit characterize On quite the it would margin point, differently. a I

a answer. two-pronged of kind of think as I this

then, a basis are As measurement this running margins, we in EBITDA the of where run-rate teens high our that specifically Reuse, we mid-XXs. renewable do organic measurement we and with waterworks, line generate ahead growth within service we kind way work, business we expectations Right? our is. across And shared should business So were And analysis what footprint normal. or our was in of that would year in Jim, PFAS our XXXX, where then, sets. about optimistic consider testing our remediation our quite strong energy analysis out you is look and on specifically for which the ability around last Remediation segments to and

look as starts we're the point like our going hit. what pandemic that of it exactly It's -- it it's is candidly, normalization not more teams before excited to the this business so concern a is. did And get not

we -- it's keep look a quite sense. you the So of gotta it But bit on trends think at to where the hear of That quarter, you annually. have really across on quarter us look anchoring the optimism on. will annual important I makes Don't we segments. at kind this

clarifying and Vijay, pointing does, that it for out. thanks and It

Thank think useful. I it's you.

next is of from Our America. state question Andrew Please Obin of Bank question. your

a assessment subject response impact permitting COVID. question Just on to and of the

that You is guys this, see clearly of warned but beat impressive. have scope quite will us the the we like just quarters

So, how familiar sort I'm very that are of just quarters? quarter? what of events this you from what is chances now with given this based described a business? it's a to one-time What a pull are are beat similar other the the I not happened. being the that what pure chances of next seeing uncertain what appreciate forward will And necessarily the not business But necessarily on you've quarter, pull model quarter repeat. hearing, is forward, And

X. of question No. versus guess That's business sort forward normalizing? pull I just So

is this Andrew, Vijay. Hey,

that. Let me take

started they're spent of fitting our are for you but I terms -- with is there, not operating Montrose. and the we team respect business, with in how lot CTEH the familiarity leadership of the only a how they're into thrilled ton of have team with a So which where and just time

very So characterize and high, to I as familiarity would continuing our rapidly increase.

at right? and CTEH, a to reason say business, the it say that pull is you So By not fit into Montrose. exist large. I that is conviction with forward an can full right? The exceptional concept does I responsible Just of

a the $XX But business to spikes is just of infrastructure. a that some of course that like we have run quarter. secular that spikes the long-term rate events, aging the kind change-related have basis, think that. are business spiked quarter on year, you million has drivers they way per you on about you'll year off as as up, of down think of roll And of over million the and so, beneficiaries And climate to normalized $XX

So of context in substantial. the would is the is QX, I yes, the characterize way it that in beat

per the QX. COVID-related three they on work excess you they the run And beat in level think primarily $XX kind rate times kind that response think you QX. XX of million do were of beat an that $XX XX about drove And basis, well of that million to annualized if So in would to drove that in would quarter.

you think We we emergency. a kind of in expect of this the QX, half begins the timeframe. to to response continue the normal told environmental another of we need first business look A ago as short year. couple weeks more through QX But of

Got it. mean sort I trends. over are went And trends the similar seeing guess, you I I positive question in very business. No.X, others your of that for assume industry just

conversations you maybe the change this back wondering does how away having some targets? you're M&A pull more and So more from potential and getting targets have environment as optimistic. to that you with I'm if are conversations know

Thank you So how do you you. price as in this on acquisitions? larger optimism talk to put

hope seeing is are where it's to where as are us playing. continue transaction where do. broader But bolt-on fragmented the tend CTEH, type vast a a of Montrose of the majority market, see play, So multiple of they And Montrose stay is. where fraught grow expectations larger candidly think to motivated to the that that's that's not really well. what It to we The the acquisitions, into today know, are, of every how opportunity integrate more their outside ton a given We as we market we very in certainly reputation our That's strategy so and Andrew, we we market sellers right which you for be context a tend -- business we we we is have there. we mission in by to and be smaller tend accretions. that's business and not much consummated. is and more of in engine and where of terms seen built desire by the strategic strategy. to really what

want valuation, where we've through in discipline we've the our to larger fair But deals the you don't play. shifting are amount come not million will off certainly we that be multiples. that we of in we the and around expectations as and acquisition plus space XX legacy So to signaled result, anticipate the a a street, seen for very frothy probably of in

Tim Our from question. question of your next Please state is William Mulrooney Blair.

for you. quick ones Two

the or good this is on business business? I this a would stricter opportunity on toward On be voted around saw have change restore the faring Senate And leak to day business, detection slow some of emissions. oil is this leak that a talk gas standards? where kind of Does Do think and long an just another you any just near-term other article to detection impact date. how year better monitoring line regulations and that regulatory maybe about evolution to the

let me take that Tim. Yeah,

So there's the methane amount some rules, and that emissions, on around leaks putting been activity specifically of in are methane methane various of and fair flaring Congress restrictions EPA mitigation. a the both around

so, there's in but exactly very don't a been bills client a I couple seen business. aggregate topic. our We've And to they around are one lot this additive all know referring to of which of you engagement

and obviously, a natural down market about the here States, 'XX will forward that of were look some obviously, sorry, our growth quite about a trend United of demand type of American the into the simple in or the monitoring, as our around something we in speak think around resonates we future. nicely. attention type emissions And in that example foreseeable continue a of of what specifically XXXX, remain business shut the into voluntary United the of resonates fence as it's you action this our just press that gas project of clarity purchase. we European at XXXX line if ambient detection, that integrated recent methane of we types bullish monitoring, and to that is lot reduction Because Canada. and remarks narratives versus will right around It lack that States capabilities of market driven America, customers the opening in by And do. think initiatives the reduction business my And plays effort to. in emissions North pay the And is in Some model leak in that where really quantification the cited. you

exactly quite it Quality just that our Air business. space that's kind detection think not what is. that attractive Management leaked us, us for So are that broader if of secular We you're hearing these optimism it's it's trends from in broader

I from on these I.T. significant seeing recent Right. -- Vijay, commercialization. right I'm you know you if of more but about through was Got or of it's early you addressing maybe cross-selling some initial for investments this it's thinking kind efficiencies And about hope before, Can benefits type a of I pivot, to you're pricing and now. bit I to And know more what for if in hoping then investments. of it. although talked But, or detail. you'd little thank benefits the your see any investments? could focus walk you. and get important area an I example.

Yeah.

to it's But in that saturate a debt notable where in our and segments. quarters have doing going it's look various given can very see over -- with -- experts let just much share couple And you what but we've our salesforce across to and across to couple this others a It's system let before CRM reflect implemented kind visibility in a the investment and our are tangible you uptick going more me Customers at X area resulted So we CRM us in the me the time, a a data quantify look said take of give quarters customers. January data can going X,XXX give a -- cross-selling in this couple take you year. and of the back a know to implementation pricing, example, of of Tim. for one that way at we've to us to where you. will

so opportunities. on, encouraged we've to by Remediation, both testing teams that and integrated compliance, system flurry really and so opportunities of collaboration business and how the so, see example, a the across been as of starting recent cross-selling are way forth. resulted has by MSE in simple acquisition the And of was And a measurement, virtue permitting the just activity

we just over of Because of there that focused. of have starting upcoming pay talked the so that's door dozen makes as dealing dozen And opportunities client's that do. some We've said regulations attractive able way at teams tangible also you're or a to EPAs personnel that issues Congress it's concern and shifting our is you were with to infrastructure as systems mitigate, methane to little to to on made year least and last your cross-sell and dividends couple that the model, the and lines -- you're across example, various for of we the that's about collaborate us. one in detection a a area kind ago. it business to months kind point arose a teams the over a to the and a of our cellar teams the like sense core service broader you focused over investments, to the are our are where It's just simple focused half our what collaborate. we development added supplement our system meant And leak really specific because if

again, model. more So our into are strategy and folks lines. business The validation our our we're across of more touching seeing we clients our get kind of our a where and visibility

great Thank integrated Vijay. A your example approach. of Appreciate you, it.

Tim. Thanks,

Our of Please Stifel. Dilts is state from next question. Noelle question your

Hey.

pushing monitoring, society how given is manufacturing to into how that my economy. I'm Tim, but gas outside develop. related market and curious thinking of thinking So Any conversation industries emissions. this you're your a is about somewhat and benchmarking, greener measuring how policy the with for thoughts sort gas extending and and utilities and market of could I'm about heavy overall greenhouse question public oil on other for from

a of is broader of all climate demand brought the reduce much This that's zero, different that perspective. The ongoing our that the their sets client these There's or have question And and drivers probably Noelle. the to question, and renewables the intersection related There's that. impact a carbon to of an mitigate broader couple business measure that going race a either an warrant great then -- push. lengthier can ways a within different net much, very ESG are impact that's your answer Gosh, can or on mitigation, right? measurement conversation. from base carbon

today, opportunities So as of there's a segment. sits within where our host at Montrose we look advisory

are have permitting to in where these our of the it folks to energy technologies an to from. then our on want source And testing some be zero? that other The of segment blend And I we where where we point this where what of that can some Noel? between some I to the with expertise as start there feeds made many be remediation and talked And about these their terms space and assess where the the various the in-house. do boards of cycle of offset. beautifully Tim, into work across where line compare side, different a the and been their been experts are right? right? what forms, we production of -- historical and fence and regulatory-driven is commitments business lot then, monitoring are serve to to or that out issues leaks, used assessment bench capture. baseline then, is How has set in response and begin benchmark And as comprehensively can figure coming think where is helping how air in footprint the like renewable monitoring, differentiation recruiting So folks suites emissions or facility publicly? can that do others are bringing ambient carbon And to some come given have Our eventually then energy and sea

be address in of we we but yet emissions are a sitting For state helps climate we of all have example, formalize product the have. But that specifically so -- a beautifully to to three. kind need a some I that want careful to across singular

coming can says, there, get For to year the do actively net-zero both process customers. be "look, in many voluntarily and are either so a in of footprints", at have that that an to then others need plan to projects, a specifically to So my there. and measure it way next that? to my help get the XXXX, me where to more their And involved carbon you saying, many folks least and a also begin us at but elements begin I implementation can can stages to where formalize baseline are or by are sea targets. But then formulate two little we're get us solution, that achieve want questions discussion a a help we saying, the fully a the emissions over the turnkey and suites example, boards our certainly targeting in I bit from

of or answer function yet. with no ambiguity of a that for marketplace evolving a end sensing of kind it's kind So my goal you're is rapidly defined

okay Right,

make sense, that Does Noelle?

Yes, it does.

that energy of maybe PFAS That around Perhaps the could you of My infrastructure of you starting could I where question that. you would little get of is some But initiatives? other with somewhat what where within look areas on a be at could that's have might getting look sit sense the any Great. be better like. you terms bill the great. you are think the where to Montrose. But on an In go and touch think proposals bill, or to When most looking bit we're great. potentially yeah, second simpler. the a impact

around the But anticipate most the side. opportunity some segment seeing us already The two of spending some Reuse the we're are what's in and is that are the increase Certainly, areas our come there though. seen impact of in We cleanup. down actually to the that that. see the we where given of Brownfield and we've certainly on Remediation are for starting pike not reclamation most assessment

NEPA teams teams assessments the and the eco-services are do, our was work comments that that our I to the Noelle. -- comp CEQA made these related do, and this the So

What a new it? or comes and And what we're more results So that, advisory of testing is an some building impact work segment. impact impact I'm then, assess? and do a environmental changes EP well. bridge? our impact our is within the an we're seeing that these on if road the with I or So there as of the How seeing

theme formally increase example within that our up spend there COVID there's had some that the time see roll even to that take sanitation, this Let's at to just in one that we hard elements governments expect will roll so predict some there spaces were of again expect the are industrial out. next that segment pretty ticks and Place. then, obviously, to Montrose to But see very clearly exactly in, adjacent and if the us that's are for out. going we It's remediation over that hygiene, as how it's elements clear that this result. for But it's which look, just consistent treatment, spend begins to baked it about and well. get is of fully the And point, on we not years, nor tailwinds side numbers tailwinds the a to will really there to couple as baked not into into our yet projections certainly our And That's have that. some as are bill nice as created wastewater explicitly around that that. be relief from right remediation

Morgan. your JP next Our Stephanie question question. of from is Yee state Please

question Remediation had a on It's just segment. really just -- I a question on the clarification

was So, still you're the because seen growth it's not quarter acquisition first MSE making low the due I of your travel PFAS in margins to how you've the the of and Australia get the been upfront whether out able it's like much there. really an restricted give and to in people investments in to were Europe and of can first that wonder if idea quarter you with

expect And the under kind more that the we Australia? more situation margin of be would back-half Europe and so in as maybe pickup, from COVID segment would gets control weighted

Yeah.

me Let that take Stephanie.

the Let part me your question. second of answer

the inability than The impact right. an that COVID we're maintained segment. to impacted and and a Remediation we is Recall, been capability to two certainly segments. still certainly in capacity comparing has impact. yes, Reuse the a quarter non-COVID so more have exactly And you're segment travel First, other the impact with quarter having to

in-house strong we very have the Just and expertise, given belief. the

growth We have segment. in future the this in particular

to million this those a of long-term a on said a is you What see want run on XX% get So we've to to particular question, the your back in tick segment end toward We up. contributed basis year, this you'll see low And should XX% to margins. but those margins start year, start was should organic. segment. this the year, levels. this On EBITDA the first there back half then, closer to tick particular MSE rest that in up to us $X of

revenue. Of

the of revenue was balance and Of growth. revenue sorry, organic

the Ok. three salespeople. Perfect. they're was of I divide dozen so how system by cross-selling? promote structure then base? kind further added CRM segments how And I they also your oriented. on or or Vijay development the you just people. -- know -- business if guys and on order you've a and clarification industry up penetrate mentioned wondering the Are in what comment can by your focused is to of you client to business of yeah, If kind expertise just the their you

two-prong of -- strategy, Stephanie. it's it's So, a kind

was inherent this. you're adding a to cellar X, Step adding for not we're doing to risk The or model But headcount right?. our weakness purpose of team. in a door cellar facilitate is sell. it, that ton so it's of that business model when And harder the door to busy be gonna

about talked mitigation teams methane before to in with and we work Noelle. that advantages supplement that where saw detection so some think we talking areas wanted space wanted play leak where or some technology we were the of like of a that Tim We to nicely. ton you will in And penetrate further we've our tailwinds we existing experts about of with

solving with specific as may to you the supplement tend or client to tend service advanced Right? these to dealing collaborate speaking you or push for our and is problem at lines. a about you When folks across where doors much technical have but base. not more you're only importantly, support expert So if be a an technical customer deep a engineer, our technical scientist at targeted to areas be as importantly, broader or not, comfortable cellar But less are expertise. an that not

conversations they and needed could more for hope turnkey offering that right so mix a the those some as of these into customers was, seemed we introduce added the the solution. so folks facilitate experts And of integrated help as our

the we what early putting really place. stages so in and that is about, strategy of just in are this is longer-term And early, all that

that be managers question, about the have allocated to But connect so answering business at explicit across lines. So we've added the mandated so now line to or right speak majority vast are service dozen been just specifically the dots of your to their level. that our

market around shift the have we're for disadvantages in One first of fragmented kind to early on the really is you. preliminary right? of fragmented, some So data CRM really that with of I'm to some us customer. dialogue of of one movers the already it. playing sense? few, that from to And We we're make about examples Does nice giving Sharing back we a this next being the But the market going excited the more fragmented indications with the questions seeing this of that. explicit earlier in talk just to time a have year.

Yeah, Yeah. that's super helpful. Thank you.

Company. next of your state is Our question Ricchiuti from Please Jim & question. Needham

differently The how that's is, of put clients state what to changing if responding in seeing you're some the is where little related a What they're Hi. be the to of regulatory at you causing terms I'm it's look to whether wondering of from terms follow-up resources. your you to M&A level. might at federal your pipeline in or actions looking

to lost us of a of there's always yes. where litigated, regulations the The it's will lot obviously, landscape. a But the business. evolving as It's Jim. is, the just question, -- we've dynamic and -- and for downside and our challenged, before, great a a And in answer introduction regulatory likely The new continues client signal get to a shift said market's this to It's modified. And and result as you short necessarily doesn't rapidly for moving.

they're And increased of Those or easy. regulation. on really more rules standards expected, right, and so NAAQS as changes demand stay quantified begin and tactical to But monitoring they're out. framed, how they're -- or some unwind communicated, of already can increases of see accustomed voluntary how to Those what not to these reductions are fleshed how on community fully unfold we that a those mandates is respond and the we types exactly some clients prior an are start of are these don't it. to level a those newer that

for areas example where that example. so acquire will capabilities to may for look technology And capabilities software or we talent or change

-- Jose immediate are would the absolutely recruiting say pretty M&A seeing anticipate focus we eco better to we only given clients. our on just team the our Those some to two is and impacting side the of the term we're testing focused, the the offerings is administrator strategy to his continue ability it and So on areas we also new regulations, internal bolstering where both us the not the broadly need services I bolster in of and we're for capability areas And and on from side, -- but Reagan capabilities. that priorities our side. provide more are

historically little consistent, very strategy. of again a we so pivot with we our looked. integrated But And very a that's vertically where bit think from had additive

you've There necessarily to that's other relates are have slowly. your to CTEH seen what been as going just is the had that I experience. base to business of question some from cross-selling increased benefits more the not is last quarters. And to last in of lend that with the And I helpful. But That's client I couple itself businesses. utilizing CTEH within believe realized

some of last clients with had in couple have these them And the of quarters.

right. That's That's right.

a at And and that we have increased conversations alluded CTEH as is, new -- the cost challenge and host a new been team the to morale. such of It's is footprint couple over they results bandwidth the clearly, efforts a they had we last earnings now, really great example for had, have fatigue collective in success. quarters call, success are the at of to a the hard and technology the with the that some combined candidly and to employee conversations are have telecom that exceptional team and from function colleagues just job Jim a the The some that is our you media comes on last strained. limited industry see and the that But of what on organizations. team's that right doing part represents those that the work of of can -- capacity right? of out Some our working of can all take the

give to cross-sell. team in begin of to to of a this being see then we breath step with of so, dialogue them it at a their time. leadership chance take And and long opportunity development catch term our their and to we on year, excitement cadence and have able absolutely the just We back team. in half terms some Hopefully, the business can one update

We back end of have remarks. the session. reached Manthripragada Q&A closing now I the call the will over Vijay for turn to

for Stay again you, Thank all. for support joining success talk us you Be to over today. Thanks progress and time. and all well. to coming Thank your appreciate really the your and soon. forward sharing you We more look of continued safe, quarters.

conference. This concludes today’s

a and You your for may participation rest at lines Thank disconnect time. great this you your your day. have of