Clean Harbors (CLH) 1 Mar 232022 Q4 Earnings call transcript

Greetings, and welcome to the Clean Harbors Fourth Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Michael McDonald, General Counsel for Clean Harbors. sir. you, Thank

begin. You may

Battles; Christine, Dugas, today's and Officer, With you, Jim Chief Officer, morning, S. Eric Operating Gerstenberg; Buckley. SVP SVP good are Chairman, of on and Mike Financial call Chief Executive Officer, EVP me and President Chief McKim; Officer, Eric Thank Accounting and everyone. President and and Alan Relations, Chief Investor

are website, Securities the meaning these of discussing Reform as today's are of XXXX. the that statements to along. only reliance opinions posted and Private Participants Relations not are on we call place today, management's Investor follow undue forward-looking invite Litigation cautioned March of for XXXX. historical reflect Slides which Matters statements Act not our we X, today are considered facts to you on are within

Information and on through the undertakes publicly concerning is reporting revision of affect included The our this filings obligation any our could release to results that company other SEC period. than revise made or today filings. results no potential in made risks the statements factors to

includes to references comparable measures such of today's measurement on release, are in appendix performance. Harbors in and comparison the believes these consistent non-GAAP provides directly of an presentation. Today's discussion additional measures. information and of Reconciliations news today's its the historical to most measures Clean that available GAAP our website

turn me our the CEO, Let call Alan? over McKim. Alan to

us. you thank joining and Starting Slide everyone, morning, for Good Michael. X. on Thanks,

to at of I'll be that Before as and earnings will the final reflect month. a torch be call discussing for moment on our year-end this this Eric the the fact I results, to Mike want CEO, end and passing my

years, lead organization some call, quarters on little the privilege my more I've communicating with bit a over our this mentioned our enjoyed it's others. been I engaging and than As maybe tremendous shareholders and QX to

exceptional our the Chief our executive results a team, we as Weber Brian with and of morning. years, that Safety-Kleen leadership, Mike's Dugas, our release see announced under five-plus these of along been segment, in and remarkable news Officer for as Financial Eric trajectory the has Solutions you'll which company more Sustainability that I'm now confident on and of includes The a growth rest separate the past this Eric President

Dugas held Officer a Eric is business, bulk he but many Chief an business outstanding be terrific operational has has CFO many and key BPS, to Accounting for at become teams. is the a our strong who services managing functions and XX-year a Brian has us. M&A employee Most partner SKSS. products recently, and within corporate a oversaw roles also the efforts company. led He'll he

to our market. its choice a the sustainable distribution company's and strong variety SKSS most of ideal blended OilPlus expertise, lubricants as in products program. Brian the Based growth broad as build next services is position through offering includes the on BPS of stage his sale our and background the such of through and closed-loop lead on

our be future Having and team, on cost. going working said support enhancements all M&A here overall and to come technology growth, still about that I'm the strategy, that driving April productivity lowering

XXXX us you trends positive I'll particularly with the of saw our all in Turning performance. enabled QX take experienced we we let strong conclude year, results. to to Services through a that most continued But Environmental our say details. I'd same That segment. Mike that overall, the in record

considerable XX% continued business growth demonstrate our to adjusted EBITDA. model increase top the a in XX% also leverage in QX line quarter drove The as

quarter year however, both results, best in for safety year was in the the impressive Our and where we most history. results, our the delivered our

colleagues make sure day to return hard all their that work we to uninjured. team, families management a home to our As try every

of TRIR to I'm year, This to to we're XXXX to work was the incident an recordable and for that the achieve to going rate one. total amazing hard rate, even all below so for achieving continue entire organization and better. them their goal X.XX challenge team thankful a be XXXX Our achieved in

results, EBITDA our fantastic record history billion for XX% invested our Revenue EBITDA of hit to time we was a return while year XX.X%. in margin annual XX% capital the first adjusted fifth safety the $X in of our adjusted the improving increased for for and consecutive addition with year. In on XXXX, up

U.S. accomplishments our KLEEN+ Industrial while in Nebraska, construction brand some turnover, our this hiring combining advancing billable AX our facility, headcount our incineration reducing achieved study. the launching oil our with groundbreaking our base our PFAS we finally, past our in increasing other of releasing year acquiring voluntary market, of notable new Service And including incinerator HPC business, legacy and refinery significantly

Services Turning a driven of Environmental our in on X. was Slide to growth revenue combination The segment pricing. XX% and volume by

reassuring and We disposal of continue demand for regulatory healthy volumes projects to and industry see assets. chemical manufacturing and our considerable our recycling as we network benefited for enforcement facilities. tailwinds QX, generated from In

weather of utilization the Incineration quarter, streams QX resulted in increase to Deer had unplanned waste Dorado in higher at Park pricing. multi-day value the XX% outages we due incineration during both that XX% extreme El Nevertheless, December. reflecting and in was in average the a mix

continue we QX landfill by volumes win rose opportunities. XX% multiple to project as waste

was HPC in our under and growth Environmental offerings initiatives. the Field levels. core QX performed U.S. Industrial Industrial Safety-Kleen surpassed than well more continue grew as harmonize Services Service pricing revenue X% operations pre-pandemic to to now branch XX% we up revenue have brand. as working now due Our business

Service a XX%. up a implementing our reduction kept Collectively, while We this hard Looking Environmental increase sure productivity pricing this but myriad a outpaced make from basis ago. growing EBITDA adjusted at our of margins that Services our year inflation segment. SG&A while point substantially increasing by also cost worked costs with growth again line to and leveraged initiatives. profitability, fueled segment Environmental XXX in our We top

in in record Moving higher QX. to Revenue that December, quarter on in impacts completed and which a that of of in plant acquisition recycled SKSS Slide extreme had. pricing as the X. based weather X% revenues some segment from as on the up break was Because higher after Profitability we took that fuel the was well place cooled in June segment sales disruptions in we oil. the our down the

on the build a revenue half made for Our declined and less we more we attractive. decision oil demand mix as stronger We in this when EBITDA year margins of volumes margins strategic our expect blended based period be to the lubricants. and to sold adjusted of base the base in first quarter inventory up seasonally some and and

production profitability weather in resulted costs. levels Our severe multiple affected at higher also by that QX and was re-refineries impacted

side, up again, a from collection ago. oil waste volumes however, year the strong were On slightly

Given with X% be overall much to market improvement enabling and shortages base our conditions, XXXX, in oil expectations. was direct tailwind output year. our in the of our line XXXX increase us for volumes QX. sales in plagued demand while that blended at started lubricant total should additive through a This The to essentially abate our industry also this of volumes blended products of

also sales in oil We with made OilPlus investments growth the direct our drive force lube program. to

allocation our strategy. X Slide and to capital Turning

collection sale late more to agreement deal in and a transactions Industrial are December, million. for On front, bolt-on oil we business And good to acquire signed $XXX In Services for our West Thompson small potential of waste see segments. operating an we both approximately continuing Texas. purchase the purchased and all-cash recently, a we flow M&A a

deal end month. close We this of expect that to at the

bring This will into verticals our services, transaction, Environmental in not verticals broaden expand will approximately $XXX in will presence and but million industrial us which paper, It industrial revenue, and capabilities the add U.S. we service annual sold where mining have power. like our Southeast Services,

With enhance of strong will the Mike our through services some that like will takeaway cross-selling to the maintain we recent to and you acquisition our scalable industrial will balance are companies synergistic is front. of to Environmental us on we enable built that add have the remain But take sheet opportunistic HPC, debt Thompson platform that a key M&A continue of complementary a Services. activities.

over that, So let me Gerstenberg. Eric with things Eric? turn to

Thanks, Alan.

Along lines, opportunities growth new We and on to incinerator drive internal remains Kimball, organic our state-of-the-art in investments. plan on budget. those are evaluate Nebraska continuing through to

to tons we XX,XXX XXXX we're certainly entered XXXX. all healthy capacity market key environmental early in across to could We have come with it that momentum needed work put much our with today, services to of While excited businesses.

Our and nature given dynamics primary our market business. essential the in underlying shape, markets remain great of

the segment, positions Services our remains due record which XXXX. Within outages, particularly levels, Environmental backlog at December to of for us waste well the

of expect demand our of healthy base, network continue our to and for based Given on all the recycling disposal year customer assets we interactions. our diversity customer

should all And in expansion throughout service growth those count new of XXXX. here Our billable head our the experienced the businesses XXXX. hires we in benefit from with year, solid

and like to due grow investments to continue trend batteries. EV to business manufacturers areas ongoing base pharma among in and our expect We the re-shoring semiconductors,

the late represent available our commercially We most other we also to from as believe be not continue study, to released expect infrastructure clarity incinerators solution monies well market. opportunities the only project released in destruction where more of scalable the around but bill PFAS market the we regulators as this PFAS. as for the last year, and PFAS third-party already solution programs into on Based comprehensive only providing our results healthy appropriate compounds the are year

will step plants. to when oil manage confident spread Within both our waste the beginning are market SKSS, year. carefully pickup, support ends we taking seasonal are experience to normal overall a from we to Despite we conditions QX down heightened a in oil the QX this levels, our of demand re-refining base favorable collect continue and needed volumes today, remain and

comp raising challenge contribution synergy including interest year in blended and difficult full a products as from for enhance increasing a on levels increasing XXXX this presents the numerous XXXX While in sustainable our including products. segment, capitalizing us, see our to our from a plan, profitability of we of production sales opportunities

of launched oil is lubricant we discussions base Additionally, KLEEN+ solutions will their brand that seeking that helping the lower with impact facilitate and industrial our to products. customers mid-XXXX environmental automotive in

to With it that, Battles. let over me turn Mike

morning, good and everyone. Eric, you, Thank

that X. to growth. income all to revenue QX on billion statement from increased XX% organic Turning $X.XX nearly with our Slide of coming

of year, nearly of the with we XX% coming full in year billion contributions October For from HPC, $X.X the and XXXX. to growth a majority we which organic acquired from grew

points year. was increase ago, leverage basis margin QX gross through at year or million, fixed result a than margin XXX XX.X% XX% this higher of in SG&A which improvements, controlling to equates We from and adjusted a last spending. $XXX.X achieved QX of coming cost EBITDA

XXX adjusted For climbed up margins points the XX%, XX.X%. EBITDA to year, with basis

accomplishment at long. If in overall is our reporting an margin inflationary This segment, see meaningfully contributed look operate expansion. the you year XXXX our outstanding all that of segments you’ll all environment three by given to results the we

our and gross a improved where margins improvement offset ability percentage we XX.X%. gross to basis HPC to strong expense margins reflects XXX both revenue improvements basis XXX our QX profit quarter price increase QX points SG&A deliver efficiency first of inflation, the improved through had operational periods, as XX.X%. to to productivity points is and in gains. This

year opportunity HPC. On synergies a our earnings shared QX ago, the XXXX as to realize call integrate large we we

of our efficiencies. continue India captured those and monitor center costs. reflect capability to results On our Our in global top that, all leverage we diligently

XX.X%, year, the SG&A of costs percentage was our points, reduction reflecting a basis full XXX a For as line November with guidance. of in revenue

QX this ahead acquisitions. expected we amortization million, as costs remain reflecting $XX to of in in and as expect look range. to SG&A Depreciation XX% revenue a XXXX, As we largely to percentage increased

range $XXX.X depreciation million, amortization million rose to provided the in we full year, November. For the rose and just above $XXX.X –

For and range the $XXX XXXX, million in to million. anticipate $XXX depreciation of we amortization

from services. increased environmental in by driven million, QX with growth, healthy Income $XXX.X margin our in to combined XX% improvement operations revenue

an year Net million. year, EPS than impressive and doubled both the net XX% our $XX.X quarter million to to the up ago. For and climbed And the was $XXX.X income $XXX.X GAAP full income share. from income a million, $X.XX for per to from full XX% in year, more ops

We marketable in We and million Turning the to steps debt of XX. million, ended QX billion. just $XX several and our at X. from subsequent securities $X.X debt more to Slide balance on our to with over year-end year related highlights up took Cash than sheet prudent September year-end. $XXX short-term was

interest our First, during rising rate strategically the by QX, debt response variable we paid environment. $XXX rate million down in to

elect our this also Leveraging we We in debt lower only easily to decreases million. lowered but we eight-year not our Second, provides remaining senior the so. unsecured million XXXX due million and achieved notes do flexibility of for ABL going new $XXX cost due January, tapping $XXX rate expense, Term the refinancing of our issuing revolver Loan by further loan $XXX to should revolver in refinanced XXXX. of and B reduce interest by forward, more our our

debt-to-EBITDA after approximately to net year-end the at year. a X.Xx basis start north being was Xx on of Leverage

following X%, fixed of cost our average of debt weighted the Our almost debt at approximately January is XX% refinancing with today, in rates.

on Turning roughly CapEx year to the QX up robust the from $XX from net ongoing which operations cash was year, disposals Slide was of of QX, Cash in prior brings million a Kimball incinerator. construction $XXX.X project, flows spent million. our million, $XX Nebraska our reflecting the we full primarily XX. $XX.X to on In spend million.

XXXX, top we provided we end million delivered adjusted in $XXX.X free For flow the of November. of range cash the at

to in majority million expect Kimball, $XX we the in CapEx we million. net XXXX, our expect approximately XXXX. from in relates to million $XXX which double the range the be reported XXXX For in to investment $XXX to $XXX The to of we our million of increase

continuing also fleet rental our growth business, our third-party transportation of in the equipment spend to and possible. eliminate invest accommodate We’re whenever to

bought QX, we a share. shares just of under And shares of million existing a $XXX million. buyback program. approximately we’ve back stock total of at have $XX.XX total we $XX.X of During our for an XX,XXX repurchased remaining million at cost over average cost $X cost Year-to-date, a XXX,XXX

and XX. of both billion. $X.XX of XXXX current a segments, on to adjusted in range Moving billion $X.XX with to operating results Slide the billion Based conditions expect XXXX our we market midpoint EBITDA our $X.XX for

guidance adjusted XX% Looking QX quarterly at perspective, from XXXX. we to than QX our be approximately expect of EBITDA higher a

does remains enable Demand our mix disposal EBITDA that to year favorable facilities guidance pricing to EBITDA demand translates XXXX include into maintain note should our breakout guidance the our adjusted the Services, our healthy. In time. segments. network. drive Service to to the I’ll our year adjusted us full I from X% funnel transaction provide Environmental to Thompson our not guidance XXXX. expect business how midpoint strategies, for our X% and at at of increase more higher of continues we Industrial volumes this Now full

at of our pricing For SKSS, approximately the in the midpoint EBITDA recent guidance offsets we XXXX, anticipate full outlined in recent pricing, base Eric base adjusted from we reflecting XX% oil by trends. oil decline year have his number XXXX remarks. meaningful to Despite decrease of that a

up the offset inflation expect is due from by and negative we segment, Corporate adjusted XXXX. had we the guide, year-over-year partially midpoint expense, our record EBITDA In to at be cost-saving insurance The of rising our change compensation lower now initiatives wage results compared and low-single-digits board. where across to bonus with XXXX

to we this cash on Based free remind XXXX expect that million, the we this incinerator million adjusted $XXX XXXX rising results, the million the flow latest range our interest new at in the $XXX to I spending rates and on midpoint. year. $XX everyone assumptions, free cash $XXX want range or of includes million capital flow working are

about If range you of be guidance midpoint million. $XXX add that the our would back,

finish great a a was to QX summary, In record year.

quarter is demand again of we favorable with year. backlog. very network there lots supported the – by levels a in in of the highlighted, further the Volumes facilities experienced businesses. we This trends service As encouraging is are throughout in our our that of same their across healthy interest substantial Alan substantial saw network a

where trajectory growth on our the off seeing maintain outlook. projecting demand are we Services kick are as Based Environmental we bullish in the positive we year, to by led our continue we level, a XXXX, segment,

XXXX. positive March Day, another that XX we long-term with our in XXXX, only are Harbors but take perspective and outlook for strong place team. which our our believe the share our will Chicago larger we plan Investor Clean expect about prospects executive on bullish at We is on year in to Not for

attending a event The the tour re-refinery, that’s any to investors in or of to analysts conclude in will across reach institutional our Jim. I encourage out with border Indiana. interested

With please call that, questions. up for open Christine, the

your Stifel. Thank proceed Please comes from you. Hoffman with question. the Our Instructions] [Operator first Michael with line of question

Good morning.

Alan, counting fingers So on sitting here was toes. my and I

XXX and best I done calls, luck. the all on you’ve of I wish I’ve think earnings of them, believe you I and been

Thank you, Michael.

right? were good calls as some were of and Some not those good,

It’s always to it. say interesting, I loud but people out think because acknowledge this I’ll ought

You going. you. was the that And see always respect where always about could puck I

as versus price, technical about you’ve we price component environmental, getting to discovered side, growth. price last are Battles, industrial field I in pieces lines Mike and a So at And about services rollover all three business its much the of SKE. of and think think the you services from year that, how when rollover plus of

in at until did of QX. them because QX, Michael, in started Yes, as that and its half didn’t put back price – most remember, certainly, the of back we QX half place of were I to in rollover a we it lot as think but QX, the you we increases in place the look – we is of of year QX, price

So ways no let’s certainly all I tech to Services will we in four disposal, of But think increases field of price Environmental increase business, at that also price services, down – be path the, SK business. on looking the mistake, it continue branch also service, think the that whether the or three and industrial year-on-year kind say, the there’s I impact of QX. make

I opportunities think plenty there’s there. good of

kind do to it of kind talk how You effectively. more learning about of

that’s true. I think

has been continue. will I be that part story for of years story part think will pricing of our – many and our

there drive to see think that to here price there’s QX. I we in the that beyond well opportunities continue certainly rollover

three other around like am look consolidated and in what I XXXX, clarification that right point services. field If have national you look players. today And you versus major basically you the on I in what industrial like a of think about

that the economic looks environment about should be whatever discipline price into so market the like. better And the comes

there together think that technology players provide work was things major into relationships benefits get better the taken is safety programs, help place. R&D I with now some faster of and think I better consolidation leveraging customers. of on business, plants online benefited, bring we the performing key I some technology, our develop that’s more with that from do Yes. with This bringing and lower to kind the think able have these we’ve had accounts to services been is of at and I a Sure. our and leveraging the the technology, certainly safer them Alan. a hands-free Michael, one of to lot And And the massive all really of working to think, ways cost. customers back them

this and Michael, Yes, is I’ll to that. Eric. add

that think platform today, that our with services provider services. national have we’re field and we I of an obviously unparalleled industrial

know, national as are North to We with with have you locations broad throughout have network we accounts that today. many support the we America able that

helps. for had cash a the That year, number, is Mike, average corporate And very comp flow, a Okay. strong assuming I’m you deserved. then well overhead which great above incentive free

So $XX XXXX, about? headwind, the into Is think that spring of that cash million? right way assuming that’s about to free pays assumption. in out Is flow a I’m that the the

I had We that. a as XXXX great well. than in year think less it’s a little

So the rollover impact $XX is say. $X million I’d Michael, million, to

are I there But in about a is capital when assume source Okay. a free think Working in pretty it use neutral? Or do XXXX? that. assumed XXXX you Is things the like cash? some healthy it’s

use. other Yes. receivables, areas was look working a When cash for capital XXXX, quite inventory, at free certainly, flow you

going of be faster. cash gets But lot better guide win to it receivables, on assuming positive. the to We’re we’re at we programs it no get that line managing get the free a that big putting that better, worse. in a hold place assuming getting that’s to if I Obviously, gets flow. better think we’re kind at paid If of in capital, we and a that’s working

a the think I in very and large was around of integration acquisition the part that. XXXX challenge

in And a capital. headwind so to was cash a as that relates bit XXXX it flow free of a from perspective working

X% off like... corporate the guide X% clear, normalized, just Okay. to $XXX And million growth not million then to – be the off $XXX is the overhead

that of the guide, putting took to when thing that. There we’re in number, be cost-saving cost, there’s and wage we’ll and inflation, the going We the Yes. place. you than like I hopeful there’s assume think think other aren’t the things that. we are – we Those initiatives corporate better assume actual do we’re that some in

Okay. very Thank you much.

Michael. Okay,

from line comes Our question. Please Noah proceed next question with of Kaye Oppenheimer. with the your

and XXXX, to million congratulations Eric, $XX Thanks appointment. in for that for all. Kimball, guess, the I spend on taking the congratulations the questions plan. was increase always

the seen to so just inflation. timing delays we’ve of some large then And But project a I some industries, number confirm, re-iterating in I want and budget terms broadly you’re a, that across just guess of CapEx there.

talk And sight what to timely, just so reiterating to us the and ability drives line budget, any deliveries, for the labor so you line with you plant ability confidence through equipment the in time and forth? your of major can bring online

Yes. Noah, to is that. respond Eric. I’ll this

So $XX how way have experience the yes, to the million much applied spend look principle out a wealth of our how out building from El as it been about The obviously we we’ve Dorado and that, we’re thinking Train the this built of Kimball, Kimball. at we estimate we’ve X out to addition, building how reconfirming XXXX. from for same project, we

So construction, that the using, a internally. albeit team the management how it, we’re general managing same contractor components, we’re from

We closely. continue be very time items, the track go XXXX do monthly to we We and project. through but into as lead that XXXX. managing some on and We’re went through meet longer those have

XX,XXX So our tons. that confident start-up and timing still we’re start-up in for meeting our date

we want or comp the here year? like then then sounds the sort Thanks. accumulated it cadence But later some cadence performance you work of gets basically, can XQ, long I’m And that how think advantage year. the you’re that and in about from over go but the obviously, of about inventory. uptick make the that sure Great. Okay. XQ The year. you’ve how I take to a business tougher is off? two? favorable of of clear of kind I weather, Is seasonal sell guess, as the in thinking how impacts here the just still to in There were on And it SKSS for the you take you to to quarter segment through. would some expect the

Yes. April, season think our the that, off sales of kind May busy in kind the worked kind base of and the when inventory is I for Noah, so half. blended first of that very of – you about think get March, products. a

think maybe I weather when cadence, be bit had to last up given you that little think year. QX we of about the will SKSS and of flattish, a will had in quarters the the up given the be record in QX going challenges be from XXXX. down QX some QX, business, we they’re probably QX and

But So is think so will will, QX I V QX, down, easier of be of up. the think year, if flattish QX XXXX. the I you cadence think an of QX in the I V QX –

you. Thank helpful. Really

Noah. right, All

Our next with Quinn comes Baird. the question with of Fredrickson from line your Please proceed question.

Good guys. Brian. Eric taking to Thanks question my for and congrats and morning,

Quinn. Hi,

Brian and best to to and luck congrats Eric Alan. Yes,

you. Thank

just assuming in I for with Can you past might you starting start for growth. out the XXXX of just industrial as made base kind what be a with us production ES wanted kind comments Mike, IP about environment the give So you guidance? for the some of to sense a – business,

Yes, Quinn.

low was mid-single to In XX% we’ve growth. great organic organic a think digits. ES growth. it couple years XXXX, had X% it So I that to was XXXX, be growth. organic Industrial In is production of scheduled of

going better the that continue just at we that go had – we’re to do to that we’ve given been be think can can’t we assume can’t than large in at but XXXX we kind that that, XXXX. we’ve and level growth the I of

say mid-single about I’d as think XXXX. growth in I revenue that’s ES So

your in building spread. structurally XXXX for Can on consolidation manage to you factors? more collection managing changed That’s XXXX? the or other better, costs, on SKSS on IMO to give whether the looking what’s just And you. market and for your ability confidence any spread Eric, spread in helpful. comments And maybe the Okay. then ability little just Thank just color secondly, a us your your manage

Sure.

around loop products time So back the the products going about oil, into separated change we and out of selling Brian back organization earlier our was when in announced motor that we market. business. the blended that bit, we a the direct with little used used and And predominantly services talked collection our Weber. That’s the bulk

By also the amount prices charge oil put market a that and managing then that the direct we in we we blended organization, we that used separating or around in out oil. pay how that the motor oil, re-refinery collect how for discipline through significant sell of process,

to confident who very are confident XXXX, to we competing So structure in that very with know our we're spread. manage we're there’s a We spread we’re from numbers able know significant reflective amount than that be obviously that our – of against. and continuous management ever, put that in very It’s to XXXX place. today be processes we’ve today, our of organizational that that better robust. We change place the customers we’ll we're discipline and and continue and have in managing,

Okay, much, thank very guys. you

Thanks Quinn.

your Our next question. Sachs. with Goldman question the of Revich line from with Jerry comes Please proceed

Jerry Hi. Thanks This is Adam question. Bubes my taking for today. on for

demonstrating destruction Are results capacity able that beyond build you to about safe you thinking of incinerators. safe us You the third-party or in additional update PFAS the volume? study the opportunity Kimball, capture plant to designated your do disposal PFAS terms of if on tons at need method, a recently the you're to incineration incremental announced of is volumes? how And Nebraska

Yes.

particularly soils. our the We we do we best network. is managing believe for destruction technology build have high not contaminated to as to temperature thermal capacity mentioned, we So disposal that that – across feel continue any additional

will soils. complementary an managing additional obviously Kimball and contaminated robust provide tonnage very are plants Our PFAS to

now right early continue would and on that number that we involved tell this. are what in Regulations be to we heavily still the too a it's and out tonnage think being changed I – of expect to process. put

agencies all our plays regulatory how depending on what working regulatory communicate remediate have their they continue test unveiled and sites on We the we're to customers on has to with to environment opportunities out. that different

prices oil you think can then contemplated for And us base that's guide? about help Great. assumptions in the your

Yes, Adam.

moderates work, bit assume year we low. that down, down We year. of course the QX QX over is will pricing for a the guidance. up, is and that – the QX know oil pricing that on year-over-year in So kind how oil of prices be is the assume oil you is up, base base we assume average base QX

much. so thanks Great,

Jim next Needham. [Operator your with Instructions] the Ricchiuti question comes from line question. proceed of Our Please with

morning. if with Alan, on question about with a the to could overlap just a any Hi, talk that little developments, you respect career you, again, to you including And have good color congratulations additional HPC? to I I provide, could wonder Industrial, all particularly bit Thompson

is Mike, It to in. part not about where brings presence, to Alan really we of and industrial where have free excited we Eric start. Southeast jump a this business. an area very Jim, have don't cleaning or a huge industrial IS We're a Industrial. the I'll country large Alan, mentioned. Yes, feel is like Thompson The

type not So A bringing a so lot small lot. with HydroChem. of amount, – that but isn't overlap there of a today

new sell around into about we're that. excited our ability perhaps so that environmental – businesses and provide customers those services to And cross-sell into some

this that the it million month. close will said, about at probably was end Alan and price As of purchase $XXX

it. Got Thank you.

paper well to been that just other one also provides entrance Southeast this traditionally pulp provides – and and It we It utility Jim, an markets the as market as that particularly thing, Eric. is haven't sector. us also other in

wondering of respect tend seeing Mike, I'm it the – typically, that. a But comments mean have pretty have any do you in seen if to for like early you mean, with industrial if you in actually customer to to you're some the changes slowing changes subtle good I made production. But pipeline. I'm wondering And I you just thanks any with guess, market. respect sounds I just that demand a that. about Okay, lag economy.

Jim, we back as team pulled it and the robust is the answer and The as sales no. pipeline in yesterday, fall. it's the strong was remains

Thank it. you. Got

last I if Just question, may.

to also behavior. pricing mentioned and customer You this how relates

continue to overall there appropriate. it through allows price is that more these become some a use we As of appreciation does lever when challenging and go to this inflationary across? of increases put a Or the as any just better you environment understanding period, to

of that timeliness and the buildup a our Jim, all into a thoughtful that and kind thoughtful on with service with had of goes always customer It's discussion the value. price It's increases. a costs, I've customer discussion to discussion they never mix. so on a say okay conversation of

support, as But that would I increases, successful and those price we've QX into been but never a fact XXXX. conversation. driving an easy evidence in results, very gives fair easier. of has that made us the it's an easy that around that continues still never from say I particular, pricing. see amount conversation and it's you conversation think inflation of The there's can It XXXX more

going that we've I’d are customers both walk thing. value hard the some to those there had probably that we've people our assets to away. when in our just need kind the personnel, work create like giving one we and I not capacity constraints conversations and to other equipment had, mean, realize we're and for with mention from put best to we've services resources of those where had can that equipment, away we

that the discipline, us I side start that here. years I future particularly some on in off to begun will is And place industrial have so paying we for that in put the think think

year. it. And congratulations you for Got that. on Thank the

Thanks Jim.

with Instructions] Hoffman Stifel. question question. next [Operator from follow-up is your Our Michael with a Please proceed

willingness the is for didn't you asked, get the benefit that chemicals, of should after benefit you probably be Palestine, to a know this. one in fact? taking that there going but The East fact thank a from that there I burning participate Hi, the is after

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that. Mike. is answer this I'll Michael,

out right winner time You're clean? regulation their may of to how And like on the that done? for like a not when It's take have regulations increased it industry is hard their place. address very kind will take a there's definition the of time. And because I be to think I of think PFAS or kind get will Clean in issue PFAS that PCBs, customers is I of we over for What a definition think for who the for sites soil in will somewhere our this play am so that long clean it clear Harbors some clean. and decades. And does

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so And sometimes, it's just because an inert. add-on it's

areas, work opportunity in public is for in Harbors think And long-term Clean done some for industry. seen bases we've military so where Force it's that it and think continue do this tailwind think, bases, you, us and will to in we've clear for like I other I environments work. Air very a this a we and the I of do some And do

for question. taking Okay, thanks the

Thank you, Michael.

time. over questions further to like McKim, at turn I to no the have back would floor closing We this comments. Mr. for you

mentioned, in later seeing Okay. forward will this of hosting I some look And here four Thanks Jim Mike, be James joining at Day you today. Investor the today. to Thanks our participating for conference next being be Dugas as Raymond we'll weeks. us for Mike month. person week. Eric and there in

and Ladies does today's teleconference. conclude gentlemen, this

your this a disconnect for may Thank and lines time. you your participation, have You day. wonderful at