Covanta Holding (CVA) 27 Jul 182018 Q2 Earnings call transcript

Good morning, everyone and welcome to the Covanta Holding Corporation’s Second Quarter 2018 Financial Results Conference Call and Webcast. An archived webcast will be available 2 hours after the end of the conference call and can be accessed through the Investor Relations section of the Covanta website at www.covanta.com. The transcript will also be archived on the company’s website. At this time for opening remarks and introductions, I would like to turn the call over to Dan Mannes, Covanta’s Vice President of Investor Relations. Please go ahead.

morning. good and you Thank Welcome to call. XXXX second quarter conference Covanta’s

be call our Helgeson, Joining the will our Steve Brad me on and today Jones, CEO President CFO. and

results business will review We operational take and an our questions. provide financial and then your update,

www.covanta.com. and remarks, on of audio slides now the in will be of or prepared be the accessed this section call. These after During we Steve referencing website, slides. be to call prepared Investor should their Relations listened the with Brad conjunction prepared can the supplement portion certain remarks Those slides to these

not consent which The Because update statements, form non-GAAP had should information with U.S. the been law. written required not by not in is Now, company’s and Covanta and or in cause can be following our The includes GAAP, measures. the these our regarding financial redistribution, from on statements may such discussion calculated differences presented financial with results this without they Information from isolation the be to statements could materially that differ Safe any are other live time-sensitive preliminary to that of measures in GAAP. our actual contains forward-looking those the Harbor found filed may retransmission do conference of contain unless of Any any accordance rebroadcast expectations. and information expressed notes. forward-looking broadcast, information content XX, factors in We considered registration as accordance of obligation presented with date this prohibited. accurate of the The SEC. assume XXXX. call call July this is only reports in

the our well would to non-GAAP X-K. regarding them press With I definitions was release, how like issued limitations that, President night turn the was see comparative over and of Jones. on furnished and their to CEO, as more call our as and last SEC purposes, use measures to please Steve to Form for information which For our Steve? we usefulness as

everyone. morning Dan good Thanks, and

the facilities, Slide will more of you please financial on I the $XXX an growth first quarter. will on results million and at These those cash initiatives The fronts, to production metal and the as then through in of management. deck, pricing, million EBITDA many brief our pricing the record strategic on during overview key with generated results, provide update along reflect waste, $XX quarter effective our we waste web of go during and For improvements some profiled turn the drivers adjusted continued including that the strong second progress of of flow I color we cost in using X. momentum a free of built many quarter. impacted and recovery

with the year, guidance above surprisingly, of the full Not performance our the the reaffirming view now of was key EBITDA driver full year adjusted on we and midpoint a year of our range. results the fleet. are We expect current our to be guidance

a led to well waste internalization waste year and reach our our our credit positioned accelerate profiled operational spending programs. majority the and flows We diversification on the have are planned energy that the for as service, material plants and Several incremental now full our to of maintenance teams to plan. the team fleet facilities, and year-over-year. of the track work focus waste performance, impact improvement of growth sales volumes plants largest investments the of to ongoing the customer as of and plant in improved is from on completed With X% remain continuous processing record planned activity, able was

in our XXX Warren well, optimization County While decided run Energy-from-Waste our fantastic plant plan. We recently forward facility well difficult the This done to per key performing team has and continue the the on Jersey. portfolio consistently decision we has New a assets was close a are day job move as to ton there.

see we the to potential Closure contributor not early impact a forward. financial it However conditions, going given be metrics. its challenging in market and size is local do have material expected significant we XXXX its the to a didn’t and expect financial on

Some of in plant to also reached noticed an our have you the agreement may stake sell during hydro we quarter. that a

We is proceeds the plan rationalize the of our when broader closed sale receive we activity near future. $XX to non-core part expect million operations. in to of This

have smaller of months. that other also in monetize number coming a We to the assets we hope

our made I previously, best have longer our review the term resources that ensure echoing and the profitability utilized. plants to and to continue we fleet Looking comments all of are

as You can efforts. periodic as this and result effort of facilities assets ongoing to of improved an strive repositioning activity in returns our we will type that view focus and

to drove both same-store revenue primarily operations. our the volume as and the Now, drivers. quarter waste growth, throughput operation Slide Fairfax to first full and X% at quarter, volume please improved and get the the realized performance markets I around business, service will same-store will detail I turn to with into We on of start key price Similar waste X. a and due fleet. with

volumes strong fee both trend high of year the to the expect to revenues performance the range. We tip end end year-to-date, this balance expect year. continue we and our the the to of near With now

contractual same-store improvement a side, our success profile to saw pricing ramping of waste. prices, of spot in combination the over On the X% escalators in due and rising we quarter

robust see with treatment continue market strong disposal We for volumes and assets. our a coming into waste to

well-located facilities. pricing While transportation costs are result better increasing, this our will in for

to In escalator. our other our is $X of labor addition, form are or important as nearly some service which and of some benefit CPI billion regional see or revenues materials tied inflation contractual escalators to are This indices. waste from improvement in beginning we

this the XX% services quarter waste our all on was grew X% Profiled revenues and for move which and ramped highest well through its hit we Overall, believe I with which talk growing into versus had during waste June, organic. future profiled by let’s about very in level our growth revenues which Energy-from-Waste Solutions, Environmental quarter facilities quarters. bodes manages group Now, successful to this a of Covanta business. environmental

in better handling medical of waste We see MPF we utilize solutions, our them more of our us processing with fleet. serve an to opportunities to including quarter, Energy-from-Waste at and improve Last healthcare more plants, startup Further, plant on receipt which third call internalizing a volumes. the MPF profiled waste to focus and Indianapolis from regulated focused Environmental continue to our enables better mentioned on drive customers. expanded of Covanta dispose facilities we better our now the Solutions’ we waste permit or the a volume material are manage MPF, our material into to Energy-from-Waste

still During we volumes the sent the represent increased than third the especially second begin by year. profile waste into site while less expect XX%, revenues quarter, our regulated they XX% taking later to growth Energy-from-Waste this as plants, of medical waste continued we

move production turn saw fleet the Now, Fairfax to we in giving to performance strong to improvement of particular. please let’s on Similar the energy energy, year-over-year Slide X. waste, and in

resulted impact That put look has hedges. continuation in for weaker value pricing year-over-year expect end year-to-date, to improved energy we to into pleased trend the for we aspects the spite we first purchase in for gas are average hopeful given the for power and seen This The like plant simultaneously driven Energy-from-Waste full X am pricing improvement in reduce improve the our in a in in plant’s both to outlook have of that base Separately, our lows purchase place of our the facility has weather the agreement Fairfax. new revenue into expectations new agreed proposition. enter our as agreements said, to and future. volatility, the This our natural market, in not the agreements is the which was is electricity storage prices also forward year also natural production expected reflects led the power a been modestly of X-year production outlook, for plant’s and we ranges. That renewable time our new reflected report economic at power year renewable XXXX. the in Marion portion will as a growth. Fairfax sales energy which represent plant and to subdued. expect efforts a significant As said, generally environment energy This of favorable the agreement higher and volumes of County to output it attributes. XXXX. Realized remains while additional value to later and to renewable overall we agreement generation in due has capability short-term This prices. the to for Oregon. can we drives achieving I realized forecast the we towards prices gas facility XX-year to us at of price agreement primarily These of this year not the demand. power market which entered full still for in additional slightly pricing value this provider of The the the energy agreement a we load begin power part includes tighten

positive in increase the business to metals both rates on separation represent Metals recovery output and X. move continue let’s equipment. story quarter Now investments and another Slide plant on to we due this

July melted time pricing outlook the full perspective, $XXX index, net From and HMS ferrous. for or now grew produced U.S. for to The ferrous heavy us average to both our market finished of and better exceeding driving revenues full increasing demand pricing on better steel same $XXX For improved scrap our prices same-store for ton HMS pricing at steel and With we and have are XX% for volumes. the through $XXX by revenue higher result capacity. in ton for tariffs year ferrous. mill per driven domestic the increased are utilization outlook per is resulted year sales steel a raising

The to flexibility also ferrous facility material. tremendous the continue of optimize sales processing to centralized our mix. and presence us ferrous upgrade consolidate gives We

will lower of to the are to cases in as it beneficial such high sense percent with index Covanta. transportation and strong for be some customers quarters. positive our efficiencies directly lower offset net from ferrous to However, make – and makes will more reduced by the demand in a price plant be future finding This that costs you through of costs transportation we and a sell impact

is site first has bullish, unambiguously the been site nonferrous nuanced. the more While

quarter ability get more driven full fractions value year. year-over-year. the were revenue greater doubled for last as material well as shipments separation Second higher to higher than value This post value by was relative results as excellent to our of

now non-ferrous muted. more is central of of their in the all the nearly materials facility outlook fleet are shipping processing is here pricing the Pennsylvania. plants As in The

growth. global The the seen due of like volumes primarily have pullback products prices to a we our copper recent non-ferrous trade majority and light that on We aluminum aluminum sell and tensions are domestically. in of concerns

certain However, recent brass as have pricing longer fractions Due of yield policy, we metals China. and change in zinc China’s such no copper, to heavier markets. access these in to better

have we in timing efforts that the high The given XXXX. other our trimming adjust nonferrous XXXX shifts We products and but may result sales products options order may the from see demand, quality execute selling is sell outlook in prices really be for product year our to identified sold than modestly some our for we of these full standpoint there The net need positive ample rather from reduced that opportunities. are we we to pricing. is at that as

unchanged our aggregate, contribution from As nonferrous. the we the and look ones in full before, the from is lower but ferrous expect year higher we at from range now metals

CapEx Let’s the Energy-from-Waste versus for year. the spend million $XXX including Slide last operating was Total and $XXX both quarter maintenance expenses, million X. to turn just on move and maintenance to expense please

results. the important costs biggest expenses approximately an million given initiative those the Managing increase $XXX have range me of We remain of comfortable expected to the million. quarter plant year completed with effectively spend aided to-date, now increased Energy-from-Waste Energy-from-Waste XX% full X% efforts the full for year-over-year. certainly The we of this Outside $XXX Dublin year our experience maintenance our facility. driver quarterly other and full is of at would and was operations operating of

plant you focus cost operating you should As balance throughout keep the the a in as a at organization. also slower as look pace well we expect keen the as of control in other on of expenses SG&A year, growth

to Before on UK want I our development I give to over an hand Brad, efforts. update this

is we project, a Environment Rookery its our may UK you agency’s discussion, its Agency permit from from As scheduled the this operating vigorously permit recall which first the hearing expect and quarter to at which mid-October claim is process. year brief defend challenging for earlier decision. the issuance subject the A process received to agency

expect quarter, which confident the we decision will be the permit to fourth will and financial that upheld during will Court move We its close. the issue are after

development and discussions well year. We finalizing and in to holding with financing. Protos potentially move are and at projects our into are partnering projects, them agreements, with both are two lining efforts next also making we progress advanced on Newhurst, both contractors commercial up that permitting Biffa the we are construction both On simultaneously early enabling

differ, of at and Some of issues projects. on is our not development similarities each predictable the is indicative experience do so is The face we local Rookery reality unique dynamics may other exist. that

successful a undertaking issued to this Newhurst turn worth results in relates Protos an discuss that, permit. request However, both that greater We to is challenge. existing rather a detail. we an than call for quarterly a the it With are the are Brad already over and of lessens of to noting the will likelihood process permits I amendment the for and new current permit believe

and will begin over on quarter everyone. morning, financial up the Steve $XX Slide revenue second Thanks, X% my in quarter, X. or $XXX good Total of year. was million with million revenue I last review performance our

England service headwind and operating behalf our grew the on million earlier of across the metal fee from the resulting in were prices, the million the were contract contributing plant Long-term reducing the million a Commodities revenue bag comparison the in stronger strong prices with energy metals. plant The facility for power legacy exiting quarter, transitions million joint $X New revenue prices with Dublin $X venture. production contributed growth an Covanta volume of and quarter million. last this earns year. Excluding in organically $X $XX with of commodity year-over-year in $X that energy by lower expiration primarily an operating of year driving revenue mixed reflecting contract waste, contract

quarter, adjusted was an million million $XXX or Moving the in EBITDA on XX% $XX to of year-over-year. XX, Slide increase

in adjusted Excluding prices, driven particular at commodity by EBITDA $X primarily production plant organically million grew Fairfax. strong

and had as was by Blowing line, million in partially comprised proportional proceeds interruption this by XX% from metals So, received of The offset project. JV quarter, Dublin revenue facility insurance O&M our prices were EBITDA offset commodities contributed the the EBITDA in energy a million the adjusted the straight both comparison $XX lower business year-over-year limited QX impact $XX the which our higher adjusted services prices. in in the XXXX. from of ownership net

approximate As you fourth comparison owned million look quarterly be but QX we million aggregate. the $X from EBITDA approximately represented XXXX $XX when ahead the still decline to Contract transitions the the adjusted year-over-year that rest will in project. of against the run-rate in a year, in aware be of of this the should Dublin, XXX% contribution quarter

we ahead contract XXXX transition client impact I that presentation. Looking recognized quarter, QX in you municipal our as categorize remind we dispute to third with this in the benefit that $X related will the settlement of million to the an a

flow free million quarter. in was Turning to the $XX XX, Slide cash

cash. offset movements, EBITDA dividends adjusted million free adjusted included contribute increase are capital the was cash year-over-year as expenditures distributed the roughly which holders our from project, we the were EBITDA, until in $XX EBITDA Before adjusted which equity items year-over-year, to to expect flow flow other lower not Dublin capital does flat working reconciling proportional cash second certain Maintenance was half. by which to in the

the be cash free expect the year to flow, to in driven category positive presented other by this of bridge restricted full we As distributions. outlook year the our of for balance over items cash

cash in the range above flow our cash expect capital. of adjusted free the our EBITDA flow while be for range, in come for year, at midpoint will movements guidance to by we Looking impacted ultimately free reaffirmed working

the So, it’s to range for point. precise within probably this us within more not be appropriate at our expectation

by next free our the the cash course, growing annual with primary Of flow million decade. flow hit focus cash of to over in sustainably $XXX target middle is long-term our

to $XX to In primarily facilities, growth relating recovery equipment in quarter. XXXX, plan year. will CES I were organic last spend the and $XX discuss approximately Manhattan next turn where business at processing in to projects material our new million XX, please MPFs, commencing outlook in invest These Now, unchanged increased or for investments. growth Slide around estimates for operations million our metal and for Marine Transfer transportation preparation from Station we

clear. We on towards the plans providing for spend continue look permitting forward as system that total progress to financial to will more our update timeline and those color progress on UK of is first we our more projects pipeline, product capital make our our ash plan processing Similarly, close. spend when we

had mind that our with investments net financed to project from $XX the JV was in of on down million required in corporate state billion, June keep an expenditures conclude where tax coupon beginning exempt projects XX At the $X.X with Slide I the update issued So bonds XX, turn $XX of million be a We XX-year sheet. X% will Virginia. year. over shared balance at of one capital of Please UK transaction worth during the will quarter. noting fund the financing equity partners. We in debt to little a

tenor in market continue We and opportunities where this credit is of year. course Xx was full X.Xx, than this end, at senior QX higher lower last a a like turn spending Remember this to we look our flat quarter The our over in optimize which expected. we covenant at capital. to sequentially. consolidated than At time facility which leverage past that tick is very as was is were will end, for other and have to this tapped quarter structure states the the cost, ratio of fund attractive

year, through long-term several this plan leverage that the open on further meaningfully both we range operator, over with the to end years. With ratios of lines discussed, our previously for de-lever As the Q&A. the let’s remaining in anticipate next

[Operator Tyler go Raymond line James. ahead. Please Instructions] comes Your from Brown the first from question of

Your is line open.

Hey, good morning.

Good morning.

the smaller assets, Hey, as could potentially that I a few how nice think on maybe Steve, that, proceeds noted you quarter. comments rationalize the in appreciate pipeline think see right yield? I some you potential do but you Hey, items, now, much to it

flow are list first that of we the last plants it’s I a when team from for are It’s been have the interesting standpoint that or we I it at pressure plants from doing either going a I ranking bottom there proceeds the to and a sell mentioned a them not couple and kind EBITDA are of calls, of here here, them them free standpoint. our got of asked handful we down. cash to shut put on or fix really

just there not the we it so and the about the County, the bottom Warren handful and the to employees, So, soon. at market to power in the on fees that’s situation is of the market we plants list. able tip good changing talked is anytime we where these there of call, and this it and didn’t see for talk for The just market but it’s several case are

if it, in but a case Warren stake like and sell put at to point ground going the a facility, So, and try never said kind are County, the we shut of don’t we this down. it sell will we have we in to

– was great we plant, and Now, got get permit which to to allowed able that regulated challenging the that medical that the waste kind allows has plant. same that us third fix permit regulated the of medical plant that we having team of waste another were which interestingly was trouble basically that third value is that, the rate to

a on a if look it’s but this again, we on to we getting to situation. from of at trying fix them them or them, efforts plants not or exit then So to try focused that performing your question, return are we really sufficient and are our the kind sell will answer aren’t we to fix can’t long trying and

Fairfax it but back? X% gears pricing, waste waste, couple helpful. think spot from to I of benefited this number that That’s have do profiled I a that pricing right acceleration waste higher last up and is just drag very from the yes. Maybe but quarters, from over pricing switching that was a coming so escalators’ Okay, didn’t also the include nice same-store

ahead. Go

Yes.

hit negatively impact in same-store X%, I X% the the and of in So on the we not are the you tip by mix. tip a contractual the of and see but markets. mix approaching we now you X% pricing, Fairfax double-digits a drivers, the are average from ballpark on growth our fee, And the within so perspective truly is escalators the Fairfax core that’s fees our spot impacted in then mean

Tyler XXXX, tipping right, a Fairfax. are at Slide fees you down is on – some you I it’s good there. of as volume, markets But mean, – QX that’s some that in as look X, contracted other out of Fairfax’s aren’t the lot from

I you mean looking way. are right So, the at

is And lag we maybe good Okay. is again, see the feels profile wouldn’t CPI a presume has my we that better be again market then waste in pricing about if into I though think better, same-store spot there mean why is than footing last really X% getting strong, I here, ‘XX? to one that, next year, very that it

might where that good there and are is company. are be to there markets well it. we is very on out keep seeing telling a pricing the I Certainly, there, upward a see it’s We waste employees that. pressure time

realized pricing rollover, contracts – those As under contracts are or point. so – waste our at will XX% we of this I have pushing contract now we

see think will you movement. upward I So, yes,

to you pricing. contractual to see it. way the put to will the And midyear waste I mean good those touched on going that all we the That’s It’s hard and kick on the a more headwinds right I to have of forward. lot so escalators, find now in drivers. start mean,

guys. Thanks perfect. Okay,

Your Hoffman go ahead. line from Please the of comes Michael next Stifel. question from

open. is Your line

is pricing very size? it it function thought just and behind also thank the close little talk end-market whether sell and bit Can much. you the a about or you a Hi, we keep of or is process and close

facility cash we of and free can the extent. a from generate flow to a function EBITDA It’s much lesser how

walked the are want our best this door who I I been would when I a pressure crescendo our I what do on at So aren’t point. I see I here, pressure am have Michael, putting it’s here, who putting could a And will plant. to and team for say, into performers? break the best hitting getting, I fair or our would of call what not And get are there are or return efforts, those the plants neither in we where fix plants plants handful need is we the to the sell of plants plants. I that out this performers category.

will decision there Some example. some and didn’t we we of good of be change them have waste medical some permit soon. to marketing that just we a I like wasn’t regulated market see in anytime going and to came with and tipping them fixed fix, a a is – the – that power Warren, And just

some and are the plants you I I we some to I drivers So the was on depends got that decisions plants is for the right is plants different different plants, it our like to decisions it a where you harder and things time write-off we and talked. there think time. on to mean impairment decisions. of that’s the make and long why I have closing these see are There point mean the on starting certain just been they underperforming make

reasonable would say a you are getting a you If at want us the to if not metric these a have shareholder doesn’t big shareholder you return okay financial for plants you impact and a from look standpoint, are your there. efforts it are but

curious to – there potentially different this am is better opportunity? and because corporate in be hands could that’s other could I be could sale why effective And be a the that structural of allow there issues that people’s

who at to in a some permits to look valuable to mean cost who process. have these they others want that They of to quite plants new structure different had I don’t want go where in Yes. frankly they have or and their have the want might to interest some there they we – might they a site they want out come will be waste they technologies want are permitting try access. so and and

view So have it and look looking these in or rig like it – plants valuable look a going location like been we out doesn’t to are who some the the we buyer are the what asset with kind and doesn’t maybe of different of there got potential talking it’s themselves that them of of about who connection, is are we fact maybe a physical buyers. permits there team certain our – that where M&A the mean valuable some we a going I attributes that’s or has got to at to other fix are

but which take you Got it. the if you the And level, again this? a on maybe two to able to what this, country plants three there, then are to profiled down of to waste sort to got plant being please, the approaches part there of advantage of want is don’t get permits or you will

some then we and there and that and it centers are East is at West – are where is the how population that’s the other locations. in the out, really So, in plays looking

at are and to East have look So down got we the West so. Coast more in good the we starting now

in coverage. have I of and they so their additional working that’s the pickup folks not medical them later it. as orders regulated mean, are their of is shortage of coverage medical the higher disposal about where need I and East who And our is so waste thing talking been magnitude Coast for think to waste very a and the the we a medical you this, And tipping some my regulated there kind with good is regulated a fees U.S. well waste, needs because than of some market, MSW know take on

waste, XX% you frame of profiled the for inside other the lastly the then And is Okay. said can medical than XX%? waste, us you characterization less

is – it who of have destruction, Some so some and houses, sure talked destruction. things fashion the about of short of think they a to want it’s and purses about, folks we some that it’s jeans a want things

drug to there some of it’s drugs. starting the frankly you is opioid programs, take-back lot grow that us guys. sustainability who want it these see part it’s in the sure the it and the this make too You goals drug around sure who by to it’s the take-back programs way, all news drugs small a destruction want but And are is a of are to who and and are companies their folks with is quite prices just folks, have big because a a to good – part advance of then going

are a they and they go goal drives AT&T the biggest of go from be where few and and XXX a though. saw plants the that, for if some a plant. press think companies, biggest the lesser large to the that’s them. is and doing issued most around of or just though. landfill That’s alternative like it an so That’s not month can to want but having recycling, our name a have to something of take there all component and take waste landfills company, Energy-from-Waste opportunity for You an have It’s part. into it’s that sustainability waste tend a brand biggest it to their to us example, of release to of goals ago disposal of go them their I of category any kind That’s one those what waste

drugs going higher go that with to room, like what was still there was sustainability you that’s like And I enclosed XX% you the opportunities understand? I something for has sounds money maybe medical where their to have capped but trying aspects from be of was waste TAPS, is that, that out

is, different have team does quite the we waste room. the might have balance a have question a mean, so – different sales get on maintenance think what need and take these what depending our we frankly going plant and price to lot impact this I we and on work on we all they types plant is and that. much our of to they how impact and MSW are like I engineers on things that in

to there think trouble much equation, So, talked but to want then will at a it’s million contract. are before, to roughly have and X that of back I can XXX,XXX MSW upside. to we we start long-term million is this kind range we and profiled of up down complicated look we waste at too we about X under tons how much in without mean, get I

market got of be Last sword. How driving has a potentially and that price that double-edge volume question act? actually a of up, because see a implication like limits, I of sort things paper, the of what’s advantage lot mean as for flooded bands but with performance-related to now this of balancing the lot issues right you their being on highly do there that. China also to take is PET plastic, between has we the

into too it plant, I detail, an Quite gets that Energy-from-Waste hot, it but hot recycled. the talk don’t Yes, that’s to just I good on question, started a which burns was recycling show, counterintuitive Cramer’s lot a Jim this fully think bit. a Michael, prefer it. about burns to didn’t because frankly, of of I most is understand I When We get level in people too little folks.

to there, a but are out time there know waste is other there. far this a good So, lot out company, we of there reported and be waste the lot large so this, companies of waste is waste week, you so

We which we see and to starting material, frankly, into are not kind quite facilities consumers say seeing are but plastic recycle lost there, or MSW. our do plastic in bells we come paper go wanted what to and the paper of if of is get bells come they of that do,

the sure MSW. have to tipping into we getting to kind And we on actually not plastic some floor, tipping the of people make more sliding so our eyes added put floor so are

And is to little starting we where BTU see a creep plants bit. up say are so content handful the again I’d of there

large on this at there of not bells we again is it’s seeing but plants. and are not plastic going something show scale And of our point up there, at bells so or paper

a last platform I county when that? Alright. he I of is should new in and and question be to would on there that being or am Maryland the to is handicap be that going elected primary executive you so County fact elected running close the should, incinerator a one Montgomery

what they do to are also with right. waste. system have a know I the going there, don’t beautiful They

contract advanced reaction. So probably and the of it’s money a you have probably the the had on outcome where system spent it, in they same lot most

a have don’t So I that spent as handicap on can much if know as money lot they it I of system.

side equation. some I folks the the is on think of going to other there be

else in to a going to we waste We hole are okay with saying, bury what or we going start do are in our to the ground.

And different operate. so situation they just they that’s if And come go more by in we but different I there, there. And that direction. to think we way direction, been in go the have the this watching plant that’s

material us. won’t for a it So impact have

Okay. Thank you.

go comes Oppenheimer. from of Your ahead. next Please the Kaye Noah question line from

open. is line Your

open Good morning the could up processing see you update when is your for just date that a for and said and more an update thanks facility? timing ash on can the us to think Wondering good bit up on little first you timeline that pipeline, hopefully UK firming the give there. if the you – you beneficial that Steve

Yes.

Pennsylvania. will work the Pennsylvania, be taps continues, the So system so in first

the the of side have is Fairless. need Pennsylvania site permit been of issue for and this it and give kind first specific because are and its they our to the permit got We this issue which that site for had we again and to is then – is be then we an it now other umbrella

So recovered it’s in recovery Hills systems along our where Fairless metals are. with

rising in one module there our the time and them the going That’s – to the there. some looking already that. were site issued give at team have last something providers will units here get wrapped got permit of that what equipment down the in of got we way we of actually out And up some specific early So technology same there are our then things that that synergies fall and timeframe. week put to that’s that we dealt. now. been at and was like cost now were we building we We the have But of suspect process probably for some in a

in first timeframe start we or are of year And in kind earnest kind construction start kind the of then quarter will so in up. of facilities at we to we expect the early fall next timeframe. looking And

called the that growth Was in capital schedule? Right. out

We kind also that. you this exact are. permit, permit range. don’t we get yet. on what the because Once we don’t firm will the don’t and I capital have the the of time. And some have we million already, $XX have the up that then mean have financials what all we give told is We No, we will in then we will you idea think give we

are balance call been the so recoveries say through I are that make that I going of the EBITDA one about one-time at we starting far look more do have items getting looking not from as to think year as in I repeat note view year you not non-recurring? you we to have more done are year next this out what’s from may that I heard not insurance looked that the here, to way the for to for year and that $X of – think of but full Okay, $X just you And kind that at else companies, $XX sure stuff anything XXXX, a folks wanted waste great. the you obviously guidance, some least half there Dublin, on million might at Fairfax, of million are the million

that’s to us terms to driver to off big annual for Manhattan this the so Yes. that numbers X% growth is next will talked the think XXXX. with that But we to that about way the the by you of already those movers it the in organic operations X% startup contract. York Round or Noah, mean it’s going wash MTS’ I mean net noted. I expect or X% you The inclusive have of think been have. modeling Brad. and City X% will is purposes would for of really talking we the And mentioned Dublin be the we as growth million right probably insurance the of point. year XXXX be caveat have and $XX I be target driver course start New will I at that to people in at benefiting be expectation And business this mean for big year. the us the interruption I big

then big is So with you the X prices. variable X truly to left incremental. And are commodity

obviously on prices metals those a would the year. move there On to pretty as that And good step prices so reason based that’s curve us then tend I be the is energy see metals about slightly today. what like forward next lower prices bullish Though forward. we feel volatile. looks to is probably dated, note side for on backward curve the you take prices Again just energy

capacity. We energy the plays And will see then out. how is item impacting line it the other

ago and million of on So we $XX revenue this now results year, of PJM are now. the are East generating which New capacity X capacity about auctions based the in years England

people not to probably till on next and decline on really are focused $XX that at We $X been looking now. line yes. That’s have that’s revenue one million million may up the capacity year

drive to I are we that focus we all to is high can. doing that the think our as things on X% as X%

– X% but the about is inclusive you really about of are you this said thought you are clarify just is to helpful, X% I to when there Okay. And talking that thinking next so for is for number $XX year this the year, number what it characterize or mean going the this million you that? that even is to row baseline back, Okay. is

that’s exactly, correct, yes. that’s Yes,

so Perfect. much. Thank you

next comes Your go line the Jeff of from from Silber Please Capital ahead. question Markets. BMO

Thanks so much.

that of is has quick one couple to contributor cash Warren it a been? the Just questions, right is follow-up now a plant, free positive flow on or

put notice flow let it’s closed last in to of cash kind going you down it that out are not positive standpoint, over and years, that the way. a me several from It’s going of free

fair. in that’s be might that Are closure there related one-time Okay, costs any nature?

Yes.

the I we done costs. potentially looked it we I have – to taking right when it, down through that’s down there. this is of think it waste have versus were into there I obligations have There have down in had so are landfill we whether part talking are waste, done was shut mean kind I the – be of But there the some keep problem a analysis that’s rolled the breakdown at the street. been take – it into the there. but the have in we we again little earlier. and that in right and We sell mean analysis slides, going previous there about that we are before better all a that to some of some putting the landfill some is way lingering and costs, shutdown

to some their but than better the shutdown – do when keep there analysis better was running case it you case. So lingering are was costs, the financially

to over potential on EBITDA? metals impact or meaningful a gears switching just shift revenues, when you mentioned of sales there shift is ferrous you the excuse on side to nonferrous the impact that on – of from then see And me, in. impact Got the business, the

so the the is heavy nonferrous This pieces China. metal impact better, to kind being. is of this that pieces is going the are shut bigger time far China has nonferrous their ferrous – so are heavier of is the doors is for again

that’s it will will when it us this million We a sell EBITDA will going okay from it we looking open can to too ourselves do we big And – end actually at I when up. the to here, up and quite it we – there sell part dollars, to want do zinc for selling it in cost not self-help we material there take zinc of the out It’s material, is Europe in standpoint but and where few separately. get detailed this some – won’t and are get but part it’s frankly that impact. an be China a is of metal is trying value

look the – the it’s few over hopper is worst. you nonferrous deal. remainder when an you this and say a not big dollars That’s we million it’s are heard this a little the are other, or of sort range. better, Ferrous will of a – little but one So standpoint, kind me in we so everything at from same the kind there way is why input-output of we put a probably year, is or

Got is updated it. again incorporated all the guidance…? And this in

Yes. correct. That’s correct. That’s

you that. much. check so wanted on Thank double to Just Alright.

go question next from Sachs. Lee ahead. Your Please the of from Goldman Brian line comes

Hey guys. questions. Thanks for taking the

Hi Brian.

tonnage just the you previous the on morning. nonferrous percent Quick color follow-up perspective, of a XX share? the one the the guidance missed I it, to good for on tons what have can – impact, actually of XX quantify but I as Hey, kind from represents China appreciate so a may the EBITDA

had nonferrous been our of volumes to XX% China. historically shipped

year, you do ultimately dynamic back this Okay, think mean a too great. versus and early views is early forward that’s that you going the the China? to think of know something be here will temporary a but if I into of view and from be need ferrous business maybe And and factoring structural I then you nonferrous that about of that really talk about to next navigating the our for part are in half some to a shift again for but you normalize back just year that expectations is through year XXXX, is try mix, or we it more set are something

Brian, very Well that’s Brad. trade between difficult predict I hi China. U.S. I given political undercurrents mean the think – and the here to it’s and

and that on there. separately Steve sell been from on is generate the in think the value zinc I focused we material have removing as order to what touched

we We or West. markets. Hills can ability business the with we centralized about sell send with East. forward other really talking point We of with what are think sit on to processing to any facility can centralized domestically. the we have a at whatever and processing XXXX react happens am We where I end nonferrous are we to focused it great here in China and I send here in look it as the the can – the Fairless

will so is I so position I to And appropriately in you with takes short market, and a in the react some happen there But the and are impossible to long all answer we what of think are asking. question give story think this.

our gone much aluminum outlook for nonferrous, guess we out, fraction it’s – stronger up. are our into most seeing sell as undercurrents, where so political sell the that as How and your plays these way the heavy domestically. through that then utilization pivot the having other the we with ferrous going of flows is But nonferrous that we has said Steve of is scrap So no the and we ours. good U.S. steel pricing ferrous production, are

I years got the quality turmoil we we pivot metals on more that got changes as nice directions product there and several versus a optionality of we when last in that the are self-help so the have we is got have that’s then the the mean that markets, different we sell that’s is metal where a kind we it. more XXXX we selling is – the associated and better thing thing the more what have of with of – lot was can now lot during

It all great. that’s Okay, makes sense.

the question provide on you struck energy the fleet renewable got PPA, sense the versus Second attributes, areas year lastly getting could sort the you with then then PPA that right are just you you or can will mentioned pricing of that called out of Thank of any other is selling now? along interest average. you I in on activity it on that maybe you. – elaborate in recs Marion any business and line you County then or questioning, the other of are terms And of you and if that seeing are means, XX pass what contracted that maybe on specifically average where we power

Yes.

but wide the a contract, pricing because average, new the is our previous closer it’s the pricing right, big basically was the Marion, fleet low. not pricing So to plant, pretty previous and

into other of get – we pricing. and don’t are looking that’s the I with Energy-from-Waste Marion were see around average are PPA facilities to plant. And their we into There attributes where our We sensitivities green in before, some local able to I and actual have at to the attributes that. So closer are interested folks environmental or who you enter pleased a we have pricing. were it mentioned

be underway usually take I a buying to green back, the activities really and their selling waste somewhat who Energy-from-Waste but power power at direct utilities, effectively of right. companies where an able So into get so and it’s companies lot we it’s it’s plant looking to think novel have we or are to not

it’s So of kind a trip. round

will we those types look of So at situations.

from also are produce. we that more lot We get steam looking the we of a can situations where

few So is there because are and been we than that underway where in around a effort we a times are whole underway, mentioned steam I and rather sell and have we effort has – than of our plant electrons, looking around whole steam them in and activities to number our where plant these more looking a have days. valuable electrons

is so I – And of highlight because don’t many to long-term kind in that’s agreement We the many, is PPA in years we signing the U.S. Marion, doing. anybody wanted the work are think it

that and pricing economic healthy does that, fact also a plant. So It’s that of help it interesting Energy-from-Waste we overall. thought it’s proposition that was a

point slightly pricing a And Brian, consistent comment, that will I Steve’s being finer fleet about put on the it’s with average.

the overall. sales, about with our it consistent way for it’s fleet generally not the I average think to think our contracted is

point. good Yes,

mentioned averages also as our selling And Steve a market that’s probably to have we relative at-market the been open the across Yes. what previously their under for pressure in position prices fleet.

the Thanks guys. Alright. for color

go from line question Katter comes next the Please Baird. ahead. of Your from David

that it, and of about taking ask talk the then sorry headwinds about just is some Good the X% pricing the if I may I but morning, wanted factored year can you into that guys. am to happen that. X% Thank plus capacity referenced next I questions. you guys for the growth same-store to X% you and missed

maybe what’s initiatives? between or could breakdown other of volumes growth you that if So the and pricing

David, Hey, Sure. it’s Brad.

growth X% change change. commodity capacity exclusive target So to just of the a rates. categorize would in to We commodity and price changes clarify, organic our is X% price

million have it is and a things which To next capacity to pricing. capacity it X% year line, like today, this be extent mentioned as to plant categories waste headwind capacity few about volume through that production the between So have the recovery, so improvement, $XX growth X%. minutes ago think in case separate as you in on X% of it the like then would generally the from where we think and continuous looks here I of $X we million we two X% greater additional in again a metals sit for

Got of last projects on me, in it. you. one timeline the some That’s can us And your for the remind for Thank you helpful. construction kind of pipeline.

under benefits construction kind did how P&L? they long if construction So, flow seeing know get it take the all of by through to I the from XXXX,

Constructing X years. on Energy-from-Waste plant is generally about

to that by So in have are expecting we X construction timeframe. XXXX

Thank it. Got guys. you,

Raymond question James. Your line final of from Tyler the Brown from ahead. Please comes go

lost bit a Tyler. We you little there,

there? You

Yes.

in equity Brad, were income? assets, the Hey, or sorry. hydro they were consolidated Hey, they were

Equity income.

And income, ‘XX of on thought to Equity million this rise to get closure on quarter I kind $X hate strong were in capacity, then capacity PJM the but that your won’t being again earlier okay. or the in coal actually ‘XX this capacity I that of million pretty I some ‘XX? and $XX I thing, nukes read the but auctions

Yes good point.

Will over it rise XX?

coupled so right, were capacity auctions around. The improved X, X with back come recent out that’s now years

I sorry I’m question another had You you. interrupted

it or will XX back hard No, arise to over just no say? is sorry,

than that results point couple been positive probably year. give next the us will certainly, it’s back specific guidance a realize more you it, mean, I years but from what recently out to more auction we have Yes. for premature as on of

I incremental Okay. an under positive? And may is that the – meaning it Marion strong, it EBITDA is but a EBITDA contributor just lastly new PPA this then County is is have

has is. it improved it the proposition. Yes, economic Yes

said prepared facility. my in Marion have the of County we the I proposition think improved I words, economic

we at. out plants we it’s do of going get mean, are value Power what to or producing are steam we the be power. more how that’s looking that. is So these I for coming

look example our in clever figuring in more of is a going, increase get power out group to good a a value this our for pricing. can that we electric, power us more going quick a get facility so our get power can how And long-term at we way

from And one VA, to wouldn’t that any detail that immediately, more that’s story. of a on XXXX Tyler, beyond going just and really benefit be see we

quarter. Okay, again Well, I that’s the anyway well. and as very helpful nice time appreciate Thanks. very,

Thank you.

no are call there turn I And further for Steve questions Jones this over will the now back time. closing at remarks. to

the for everyone the comments year. a I very along today. of today we call our sit at of take halfway earlier Thank my to moving reiterate in point want as moment participating are you. some to here Things nicely. Thanks

this are through the move about development to off committed we initiatives excited are as our organic are UK continuing into are which construction. the we I for paying thank we our moving of and We focused their progress his performance balance efforts on like the on growth year. and would to team

So good have and thanks again Thanks. for joining us today weekend. a

concludes This today’s conference call.

may You now disconnect.