Covanta Holding (CVA) 8 May 202020 Q1 Earnings call transcript

Good morning, everyone, and welcome to Covanta Holding Corporation's First Quarter 2020 Financial Results Conference Call and Webcast. An archived webcast will be available two 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. Please also note, today's event is being recorded.

At this time, for opening remarks and introductions, I'd like to turn the conference call over to Dan Mannes, Covanta's Vice President of Investor Relations. ahead. go Please

and quarter Jamie; everyone. to Welcome Thank conference good call. first XXXX Covanta's you, morning,

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

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

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

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

which non-GAAP Form more their release, as For as see regarding issued as was furnished SEC for well definitions use on last X-K. limitations the them, to our and usefulness comparative to press our was please night measures and purposes, we of how information

to turn Jones. like our I'd and that, CEO, over to President the With call Steve? Steve

is healthy and Thanks, Dan; good morning, safe. and hope everyone I everyone.

those a the the begin deck, Slide For start to We on had web year. let's using X. great

we $XX and $XX free waste, tons over showing and EBITDA first strong processed million a million primarily generated of million X.X last growth the both flow, X% by of During quarter, driven cash year plant improved improvement of availability. adjusted

waste in in The prices, given secular stem growth the This that trends prevailing demonstrated first average the well at contracts higher drive price in waste reduced landfill as market same-store X% fee With XXXX improvement quarter of for disposal quarter, our continuing from ability highlighted growing pricing major and contracts. XXXX. tip that higher to we our embedded escalators repriced demand in capacity alternatives. prices, our the nearly trend tight disposal we of as market, the during

care team Environmental Solutions and clearly X%. a where fruit in Our our contributor significant and platform at and XX% saw our Facilities Covanta in up CES first first Waste-to-Energy We revenue these customer growth revenue in sales large profile And the which was the was plant, Processing revamped efforts we quarter. grew in quarter, Material XXXX. at the systems as waste bore

focus. that of employees story is on about this for and will can customers, note period our markets, How our I will mid-March tell the off QX, good Company. strength believe, While navigate operations, the emerged our a COVID-XX the year we the impacting strong feel demonstrate in we significantly pandemic now starting overriding XXXX, in

facilities, call our business on few decisively customers financial. on a mitigate reacted weeks discussed ago, COVID-XX to update pandemic we I employees, the of As impact our and

with and in At minimal we've infrastructure, operational providing our critical this do to for essential business our its core, continues operate communities result, so services operates a well disruptions. Covanta host environment. challenging continued As to

we majority that our fee fee waste, contracts and agnostic waste includes This municipalities, was from processing largely by our where pandemic. stable are and relatively generated strong. has of residential with which tip long-term and remained the service revenues our service The are waste revenue unaffected to volumes

pressure on commercial and seeing which stay-at-home largely given volumes, in sources, the industrial waste is and from are regions. the We MSW profile widespread similar mandates and manufacturing core generated our

and ensure I'll been few assets, location minutes. this However, given and successful of further discuss shortfall team, in we've waste in the to talent the capabilities backfilling our procurement consistent logistics our operations. transfer our of any a station volumes

markets revenue, are on historic things expected commodity-based challenging, Electricity impact remain near-term. remain in manageable. too prices is Regarding changed the haven't are subdued last to while us extremely And near and quarter. since much the lows

move gas futures oil to gas. drilling begun upward have for natural associated the reduced of reduction recently and in on the expectation potential So

We limited for downside are highly remainder the hedged XXXX and of see risk. remaining

levels. we already at positions our As risk hedge XXXX, our over XX% at disciplined This are our with in is management we activity to look line XXXX hedged prices similar strategy. on exposed

ultimately are remains electricity, near-term long volatility. to we While minimize our on goal

material. demand from a areas other In helping to have rely for light of in pandemic, reduction auto even COVID-XX sellers environment. activity seen supply the prices and of these our scrap low scrapping, The scrap this the collection on demand reduced metals in in metal. during is of we economic supply That said, activities response quickly slowdown reducing support like a of the is

Importantly, for upgrading given made the investments continue our in metals, our to products. markets we've find and we separating

value want Covanta. remind current beyond the I of proposition to Looking fundamental the you of situation,

As leading the our opportunities. from us growth to we're on provides waste drive for potential in management. company, investment focused new world This disposal. to offering is the incremental levered while assets, secular value opportunity and the business critical sustainable trends waste a And ongoing our

UK, focused Fairless to In continue most us our seeing have this our facility are the of first will Pennsylvania. near-term XXXX. to We flow These investment. three the in for in growth, the highest strategic first invest front cash opportunities UK the projects UK TAPS and from and in but Hills, will rates the begin construction on we the in on in projects of and are we expect offer returns be

the our ahead we faster focusing call with and attractive is few payout. flexible leverage, our and a project Earls the our from of UK ago, stakeholders, liquidity. offers and ample near-term weeks Scotland a of shareholder balance a sheet to our no we brief dividend value are restarting all success growth maturities and excited risk reducing process of enabling pathway offering By about less which investment, the more an in lowering to proud Supporting believe us. our conference still while opportunities in update I'm now in initiatives to-date As activities. construction Gate these is a

move waste take to revenue let's X this look Now, environment. closer Slide a to at in our

in calls While will by and for deeper the how volume remain waste the the this pandemic relatively tip landfill as current collection different streams specifically. a investors, to followed shutdown translating environment. the pressure steady us integrated prices. bucket situation certain softness fee companies dive on waste our are is This process with impacting temporary economic is waste and well experience on Overall, than Covanta how

and reminder, will billion from in which, impact in waste very approximately service see XXXX, of As revenue; COVID-XX. we little about XX% generated $X.X a

long-term volumes contracts. based on our which under we agnostic mentioned all tip are I about long-term residential of waste with fee half As processing waste relatively and this is fee our municipalities service to includes earlier, contracts of where revenue

our revenue, which Environmental some commercial of profile and XX% felt together downward other roughly have fee pressure half our represent We waste including offered MSW tip of environmental Solutions. Covanta and on services the waste, revenue by

is our plants procure As waste goal streams. to to designed are declines full, ways additional our run Waste-to-Energy any to offset in existing sufficient

here options now transfer were internalizing appropriate, transfer received disposal to some first our is XXXX, over to third-party outlet. at into our XXX,XXX of stations these we're stations. In of One at tap tons We're our tons. sent

going lastly, simply for waste. of and to accept our key back a casting we're to net ask we're customers waste in from Second, wider haulers. then some some And additional more them cases,

the to we waste is oil and services, areas we environmental customer On and that balanced that beverage, gas. I'll a including food note side, products, have have consumer very healthcare. and chemicals, across manufacturing limited exposure profile diverse base

this profile volume sectors like waste has shown many limited for sectors in while exposure volumes to XX% our to overall range XX% by plants our been driven were in impact. auto manufacturing, other down certain has While the April, Waste-to-Energy to particularly

Slide you a Now give X. we to try economic we're sense to conditions. Rather than when please turn will in for can normalize, guess the what seeing under and things current how today business

volumes reducing tip First, we average $X fee. lower on per impact by to estimate alternative $X month sources or fee that commercial shortfalls currently an price as tip revenue overall our million and in waste per of ton backfilling industrial $X with

the are need that find rate tons, run prediction, as unaffected. the delta waste be be changes. volumes largely and on significant But rather evolve clear, Note isn't environment where calendar commercial to location of current To year price the industrial but this do we type. can the that will and depending portion our existing the macro a a replacement on still majority

where As commercial this are anticipate headwinds is abate, we activity will but we today. improves, these

our also XX%. by we're from processing seeing addition, lower reduced In Environmental currently revenue facilities Services to some impact XX% material at volumes where is running

Waste-to-Energy reducing our respond as as costs However, labor, this by business can disposal. to transportation facilities, and compared such

estimate we than of decremental revenue lower margins result, a the As XX%. on less

overtime. other environment, negative environment some throughput cost of impacts are this in this in efficiency. revenue, Outside will PPE operationally. impacts and we on it like inevitable and increased of operating we're suppliers seeing the Further, of is in affecting some light general and There services incremental this operating waste of areas including challenges see

savings discretionary and cost expect to cost freezes, bonus. As announced, reductions, we offset previously including salary these through reductions, initiatives, reduced items proactive hiring partially furloughs temporary

expect the This for changed. in the presentation. million prices $XX on business we discussion the contracted to separately revenue providing XXXX. commodity good have this the $XX where generally but appendix as for business, not usual we total commodity highly and in does in not and of our touch of outlook impact the prices, cost we volumes, a and this total, visibility on In to are stable is has majority pandemic savings potential the million Fundamentally,

call greater that, to detail. results With I'll in to Brad over discuss financial our the hand

a was Organic and million the with Steve; good morning, or by availability serving revenue contributed plant of in X% growth, performance driven strong $XX XXXX. revenue commodities, the related revenue waste Jersey. million, I'll up from wholesale quarter Total $XX electricity X. our excluding contract impact Thanks, additional our in the new higher improvement, review million, quarter $XXX financial the my for quarter, first New to price Slide everyone. and load on begin of

as to had negative lower a saw market has million significant for metals. impact energy prices $XX we a and decline Commodity related

by aluminum scrap across scrap XX%, by while and reduced power one high approximately Transfer $X down the with ISO Island. a prices index old the respectively. represented new transitions asset the at and and Manhattan divestitures. to Marine the by lower cast ferrous basis, contract on plants reflecting On benefit were index year-over-year Station XX% the Transactions New our number were side revenue PJM England more contract average $X two million the revenue, HMS million the offset XX% of benefit start-up of of Long Long-term than

on a to EBITDA $XX moving million compared million increase was quarter, Adjusted X. the Slide Now XXXX. in $XX QX to

the improved first from by million in million Waste-to-Energy quarter. over adjusted by business production I headwind the organic stronger expense. waste EBITDA plant commodities, Excluding million, outage prices maintenance to prices, $XX growth transitions and representing translated discussed led organically, was EBITDA. Island that Core $X contribution The EBITDA lower commodity $XX the XX% line. Long plants MTS, from the net while Manhattan The transactions long-term $X the contract two at adjusted on contributed from to million just directly from was benefit revenue

of capital compared QX offset $X free in X; quarter to capital maintenance cash higher to the we year. $XX XXXX, plan item increase was for expect million a The year-over-year be adjusted $XX in recurring million last maintenance expenditures In Slide flow was light throughout quarter. partially to in in million comparisons in Turning EBITDA year. this by the our the

$X a Warren year-over-year. with the did in our facility year. largely in modest for favorable During XXXX, Working reoccur consistent QX, cash we costs closure in connection severance, of last benefit the XXXX, which million QX and a comparison capital with provided QX quarter not providing incurred

activity. please Now, growth Slide to XX I'll investment turn where review our

recent and XXXX. in startup UK on our and allocation in facility call April, TAPS project primarily we the update to focus during investment discussed As capital growth the our business of plan

We will additional this year, be in making any discretionary which this reflects. investments disciplined outlook highly

extended TAPS start-up met released in until will to plant in performance to to million operating $X invested our invest $XX the payments million we total million quarter first after this the little year. expect not During in spend $XX now next we in and plant right and total. be vendors this year project The a is task. our and has plan testing of some about in We over

in the close the given project of first to project into Rookery, reaching buy Upon the premium and and with similar size, we project. on the financial but involved of GIG the recovery from UK a quarter, Newhurst the in relative to development ownership the received both economics smaller amounts costs

for projects, amounts $XX venture now both million received in unconsolidated construction. the can our currently approximately in With have that be we invested project joint

you funds planned UK new with spend see corporate will Covanta anticipate our in investment in for we required As can project from presented these here, the effectively funds. any outlook little cover XXXX that net

$X.X billion, update sheet. Please on $XX our March provide net balance from approximately debt million XX, turn to I'll year-end. was up Slide At XX an where

times, our flat X times covenant times, was which substantially and facility year-end with down X.X credit limit ratio was of covenant X ratio XX. leverage consolidated senior December from below the is And times. at X.X Our

our available March at was Our $XXX liquidity under XXst. revolver million

I'd revisit will to take else thus and our like plan cash leverage focus investment all that from the The and over dividend pace increase around a this flow few our equal. ago. our we retain of weeks opportunity to of policy the revision discussion being call growth deleveraging, the accelerate time to

a lay Company the a capital for best current puts is a interest policy of the especially improvement will path of this firmly we in the and it's out reach visibility, shift on re-prioritization on given balance think, business premature specific allocation to stakeholders. when limits all sheet While which, we timeline in target, fundamental represents

it we comments. over turn to concluding before I'd to it Steve? Now to like some back Q&A, Steve hand for

resiliency and through take Thanks, about Brad. when no moment morning What I we're a very high as manage and a normally we return also our operating and is There can degree to and crystal will reiterate this initiatives things things. to various a environment. can't lot to say ball is few normal. of say has business we a this We've the want possible. spoken as stability,

We are the from is of that our clients partner to high continue to same expected level service and us. provide value

off opportunities. unchanged business we construction Waste investments In handsomely. grow to we focused energy initiatives the others focused perseverance, and the are with pay three Our multiple remain to the they take development. we UK, on but remain and as and these patience saw in on in Dublin, growth facilities

in activities earlier are development an as before, the we're New but stage, US mentioned at I've seeing more activity.

domestic in you positive play Pasco as are seen press, with sign potential recently have market. potential in to For This example, to may it's for in waste of the will the a time of out, position plant. their Florida, energy client we the take and to on expansion County, our in negotiations growth our the strong support but

the to open always, As questions we Q&A? move And to interest I'd we on appreciate support. like can for Operator, now. the your and line

first our Please comes your with from question. ahead go question And Oppenheimer. today Kaye [Operator Instructions] from Noah

taking you and for operating you take and increased one in that morning could over for time. help sort the helpful out the of that how the millions, and to that? - with kind of cost you and higher operating some terms of quantify of a higher What us, ask all terms translate detail. I Hey, other plant the If just did rate questions April, modeling. actually thank if providing run look of called Very around If what can that we in at expenses? supplies more and for efficiencies process good will

at Hey, the moment. quantify It's to that It's Brad. Yes. Noah. difficult

for view April. a have closed process good in our on on revenue just We

closed evolution impact. fully given probably the the the I of point rapidly-evolving on haven't us And doesn't make books. the sense also, cost for here, a fine think, to situation too We operating put

I of how what impacts, impact, those sure us, but that think think, about initiatives. if as we wanted then intention potential reduction just to with those additionally may the people if more incur they about make is we to cost our not this offset work think you'll than course impact

one capture feature, lower try no maybe I those from something with you've maybe in from savings rest looking digit carry million million quarter, just program, tip today have the year low-single the improvement give from EBITDA you're the digits could sort It's of we for mix, lower Okay. high-single I a for missing to to I fee year. so energy $XX I but that. the sort at others. whatever basically like some then and environment, $XX assuming just think business for given here us back call appreciate the million of environmental you of If OpEx is, less the forward simply get piece of trends baseline so so or from to the a right. EBITDA $X mid-single from million volume, XXX,XXX it services, the want that

mean, it about that any we $XX of think So way like a if don't walk trends? million it kind implies EBITDA Is current of to fair $XX million improvement. get off something I based to

you've through And we're to the that's It remains again, just as rest that what major you operating at all is. the assuming yes. of moment categories. covered the environment but this year, the Yes, in is confirm said,

there into because a of processes one extremely quick If could I All right, that just move you and forward helpful. in on more, financial can all for to and update are on imagining color just sneak but give the pandemic, expectations that's if Protos of us close? slowed kinds any

Yes.

and this get a point, that the few will in procurement, through now several That will so take process. us. talking and work EPC, to then to that us through expect to engineering, We're working financial for we months plant so the different we're at an finding we're Protos, of process construction build contractor So to close. entities the

it's into path. So had pivot contractor. along EPC contractor The moving a towards ran were pre-COVID we so year and use some of issues to still original we the EPC set the during going another

we're So on working now. that

I appreciate the that. Thanks update. for

Sure.

question James. Brown ahead Please Our question. from Raymond from next go Tyler with your comes

guys. morning, good Hey,

Good morning.

Hey.

color on waste pricing. great Steve, So,

I think, jogging we all the maybe prices full. burners understand why keep to down

guess, Meaning, to However, my your gave new these pricing how some not a that or of one plants, for did you contractually enough how you them of quickly up? back migrate some locked advantageous hauler to waste is, give I rate to are can you that deal have rates? simple is case? tons in the in question question redirect an is duration if my

Derek interesting. this it's Yes, deals. short-term These Veenhof I yesterday. talking about and were are

quite and So, to dissipate looking as start into frankly, the come orders the into we're marketplace, state-at-home some come already waste of to we're the commercial at deals is waste starting starting back to not start kind to these back of back we our flow - our for normal lock pivot to so normal - flow any period significant don't that now to our get to these from; time. of in us really customers back -

very that's that is get versus probably like granular peak week-to-week, improved know too won't too or helpful. your Okay, but just guys pain price to-date uncontracted has And you I granular?

we've when to a improvement - with Let the me it. the - both commercial commercial mid industrial low general and companies. in similar waste most point question modest have The for point Since as of so and a force. business seen stay-at-home in say and heard time, waste let bigger the volumes that because, this guys. me us, orders of seeing we're week, profile stabilization April, We're business were this those few recovery. for the facilities. same times, in of early-to-mid shelter-in-place waste us and some - Easter waste our because other I've in I've as The question again, heard this, a expecting low restarted, a was full deal kind so We're with integrated

that's kind we're position So the in now. of

pricing challenging, So of again, from from if that's trend. following you but was that there. moved at kind standpoint, a look particularly mid-April up And it's

Right.

helpful. Very, very one. right. last Okay, maybe And my

XX% think service have a XXX% environmental sure think just about said So, tip all I a $X all, the think decremental that's I XX% revenue, fees, $X And was services, to how decline is or it's decremental? I month basically you that decremental, on to make to Brad, I because a that then do million some XX% just in guiding lastly, about all fee million impact we you're in want it the those? price, but down XXX%

Yes.

just expect part, the it XXX% be So is to Steve services, net that's than the a On environmental decremental, different decremental as probably less yes, XX%. actually first price. we said,

If you under waste revenue, fine. that's XX% a function service really rule use fee contracts. probably our service the it's as then additional on we want the fee thumb, just And of a fees service of that earn fact to

very impact the a We in commented Steve bringing relatively waste, a a but fact small and contracts primarily running we're the that of lower these also number volumes really are under extent the some so, that see agnostic. residential little And municipalities prepared that commercial. that's us remarks function to volume do a the of

fee deals. volumes are lower the high. service running the XXX% decremental, but bit pretty it's So not on That's a

Okay. All right. guys. you, Thank

Our Cortellacci ahead next Mario question. with comes go from Please Jefferies. your from question

Hi, everyone's and guys. Hope well. safe

a term, what term of I the less think kind longer quickly on in theoretically kind from or have to there just or about get looking guess, kind more business. stabilized, thinking sure the or business? mix longer of said obviously come opportunity commercial is structural priced is pricing as lower doesn't shift think if what I'm Just you've just that just change and Is I there things but trying to term. its back bottomed of, longer and spot

on depends region I mean, into come as that market, back see the more think the think on I pricing. volumes a I you'll of stabilization though. will. It

I power; we've pricing less more got so in regions, regions, other power. some pricing in And think,

seeing want option that's helping go limited think changing going to to - really a landfill secular non-landfill been it the so we change aren't it capacity are customers will I and will and So be aren't business. - there trends but is who our - is the There more still to in region-specific, market.

update Great. end mix market just great. that, guess, any of business? your of, there in small Thank care, your update versus quantity like on that you exposure any any look for And sense is preventative waste but quantity regulated things hospitals, like mentioned if terms what of large know I medical the then, I part you. business, And kind don't of would be the

Yes, that permitted we medical have three facilities are regulated waste. to accept

have And so we we leading believe position market there. the

So we've that. been pleased with

these began third offices ramp in slowed actually path would secure originally to and of anticipated It's in The up. that first mentioned. plant down that provide and also. so slowdown medical XXXX that you - shipments waste quarter medical plants figure it take of up been the ramped third doctors' had actually interesting a pandemic the for we regulated and kind medical waste. But the regulated regulated in surgeries, elective It the quarter, waste with the saw we've XX% closing during

start opening the all just So on a in. top here, they again then and Because me I the offices up note you'll how of waste. a as other procedures see office are see that's will all we opening, COVID-XX waste in and ramp regulated medical day you've my start doctor's doctors' that, sent playing up up got elected to think

system. coming So a it thought the you China, - and through lot in COVID-XX would originally of waste there we that saw was

down. are come that because us offices things mentioned seen haven't We the at I and other elective this surgeries two the point, to the doctors'

mixed kind COVID got been we into as it's of the a bag So period.

trends, I a at we're and doctors' think it's we the on probably restate in just that I'll useful but in Steve more touched not offices. little the And the hospitals, not to are Yes.

course, Of to that we our including leave partners, Stericycle.

or us, trends, whether frankly a don't see for quantity the a difference described generator. small it's quantity Steve So general really but we large

is what's the relevant material just it For the incinerate must on impacts and that not, price us, for or market material.

so you much. Thank Great.

question your from Lee with ahead go Brian Our Goldman next Sachs. question. from Please comes

Hey, taking the safe everyone well. morning a impact I $X granular Good here for know color the appreciate there per been ton I pricing. and of $X focus lot is and the here. and guys. thanks Question to the on has on Hope questions.

on the that the the volume chart kind blue You pie are stating on of not that it's in XX% of that's part X. of entire Page

could impact of what what part that or size help kind So right the now? impacts is actually mix you pricing seeing of

Hey, Yes. it's Brian, Brad.

would this detail of cetera. markets, a to kept price into the as on instances, it at in level minority lower et in essentially pretty tell up see the the specific what volumes intentionally much you those is volume - punch not get high be cases though actually and pretty specific sort of give delta we but that really we So in a line too I showing the is can XX% and significant. many as market

So the most on that obvious waste example would may spot depending backfill to we need with MSW. be profiled location the

$XX the [ph], of not over can Of things, within waste scheme price is it's even $XXX so in average a profiled a majority pretty course, the our ton, on again, that that be a steep volume. of But delta.

give phased And question just through of today would us as but to cost of million that of cadence then, of as flowing enough, already then I and how the here fair what is of second achieving the imagine end of going the Okay, in, some rest QX of on a QX that cost of the this $XX get helps. savings to million into is or much year? the moving $XX you that is sense a savings. can through

Yes.

ago. we've we've - and weeks several of reduction fairly furloughing mean, quick and pay gates started we're I some So started started on out the of the things

and that shut easy to So and discretionary entertainment, spending travel they're off. was flowing through

we work take million, through start $XX period. now you that $XX to this COVID midpoint million So as it's the pretty of to coming right in evenly pretty,

make I'd that was If So I extremely smooth modeling it, period. it's not through lumpy. it pretty

Okay. Thanks guys.

Silber your Our from Capital. question. BMO ahead Please next Jeff go question comes from with

Thanks so much.

on bit. going is more maybe to little I or or a specifics for mentioned But, think Florida. County, not transaction. focus potential this that on the one-off? a possibility transaction might domestic with You that you do negotiations see I'm on growth just that you Pasco is wanted really asking there

Jeff. now, on with of No, the we've Interesting kick-off Pasco the today meeting got a going discussion. right several there - is on County, one discussions

so additional lot in it's is in been There my a business. depending we press, areas, solid we seeing it. what's waste least figured one's or on at municipalities location, need and happening and the have that And disposal the we'd three had been are that's we're tenure, of others lot we in US. plant the more folks. So outside mentioned at talking their been that or so a from to capacity actively two, opportunities a haven't the seeing been, is about the geographic their for these driving folks looking talking US, lot the haven't their in And of

So that a have the see of the we there going existing be focused US. more really out been on energy-from-waste the to some you're think viewpoint. to with of in expansions And And pleased we've seems facilities there. fact I in now change that

that's business to things know silver but helpful. are longer for think hate ask Will is linings And clinical do this term? Okay, your any I I horrific a there crisis change? and this question, you

an interesting that's question. Yes,

had employee change from think kind this that employees of standpoint. I've I the - an from - and will things

change. the there's to mean, we'll about there remote. think world of lot more going I how articles I out a get is

seeing more looking the stream, think As And continue. waste there'll which means down, is are which quite don't think you'll see waste waste see there even business, we much home. I - be relates to waste recycling more some for I shut further, continue and coming it that the as at frankly I that that'll means through program

pretty matter, think up sense, I don't from resilient the is drop this a I stable, little in off bit it'll a issues a lot tighten So waste. my a business. of see but as general a market is

I new normal levels we back the to get if see or when the an anything, same uptick. whatever we'll think, waste is maybe

the Thanks Appreciate Okay. much. color. so

question And our next Hoffman Please ahead comes go from Stifel. question. your Michael with from

Thank hear Dan, echo taking the for Brad, safe are to employees glad and question well. I your as you, you and Steve, I'm

came business terrific in all You core mean, incrementals. at in incremental a XX% had XQ, I

on incremental not, back, that recovery as If you're than with possible you is it XX%? cost you cutting, not but revs come all this saying it through follow is better with follow the and through I'm

possible. of Hey $XX on of one, Michael, and predicting. laid it is which not waiting it depends obviously it's the the the really But Brad. numbers - million what. I we're trajectory into the valid of pace recovery, we've I sort suppose the to mean, really which of a one is we're $XX certainty matter million; is out your no doing that point the it's

so depending that's suppose I like, possible. the what looks recovery And on

Well, would the faster XX-something than revenues take that, add cost? slight is what and you differently, midpoint, you add you out

think Yes, I right. that's

you're - that's definitely possibility. I think think a I

of Did the sure to I fee kind pricings And as tail longer or Steve. then, got average slower Okay, down just the level cool. steep it they one tip gradual your a make understood business bottomed I blended to have of a April, want so tend comment, slow in short the like middle before they bottom recovery. switch, I it's starts then look take typically does well to and to recover?

looking base. been I've comment. a of volume data that Yes, The been volume more more at has was

the the follow little moving been think directionally with a I away have the more pleased the from after pivoting tip we're in all shelter-in-place I recovery. direction. - stay-at-home say. states I I a to And and have get we orders, I going think to will I but shelter as faster same that, bit recovery, - in have will been move - so it's far, think fee see

Okay. tailing question And should interesting what's observation silver then, on the lining. be it - tagging the an of on

third-party there volume, are teams in find find As they it Derek's to out environment? struggling are to because trying players this from, there fewer

the I that long the residential side is commercial side, don't been lower, visibility we're as big plenty home. we and that haven't see still of mean, - out, waste going the there's coming haulers, who some guys but There industry is it's are of good We a have still a still I around think, time. there needs the yet. really waste seen of waste, plenty is - you've to

much. Thank Okay. you very

Thanks, Michael.

back conference and for I with management the closing remarks. be turning to over any ladies gentlemen, And that, will

in us Sure. Covanta. Thank for continued joining the interest you this your call morning for on and

who As remain but focused performing to our through in environment, employees environment. navigating you I'm challenging long-term a extremely heard we're goals. on this are today, thankful diligently we our

possible effort. continued would a as be without company success Our outstanding their not

our progress. want to them. and about I So remain I Company the thank excited

have meeting plan. virtually engagement to forward with active look over we we shareholder you And schedule of many an months, as the coming

and day. So stay be safe, well a good Thanks. have

ladies conference And you for conclude joining. thank today's we'll that, and do with gentlemen, We call.

disconnect now may You your lines.