Clean Harbors (CLH) 30 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the Clean Harbors' Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the floor over to your host, Michael McDonald, General Counsel for Clean Harbors. Sir, the floor is yours.

Thank you, Christine, and good morning, everyone. With me on today's call are our Co-Chief Executive Officers, Eric Gerstenberg; and Mike Battles; our EVP and Chief Financial Officer, Eric Dugas; and SVP and Investor Relations, Jim Buckley. Slides for today's call are posted on our Investor Relations website, and we invite you to follow on. [Indiscernible] we are discussing today that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. to opinions reliance October only not which these XX, cautioned management's reflect as are place on undue statements, XXXX. Participants of today, our our potential is on factors risks could Information and included filings. SEC affect in that results The reporting release results company period. statements today of publicly fundings through the the other to undertakes than to revision made or obligation made no revise any concerning this references will include to discussion non-GAAP Today's measures. comparison information provides an measurement of Clean its believes historical performance. that such Harbors and additional consistent comparable directly and most measures the of to measures these release, website of in available our today's news in GAAP today's Reconciliations are appendix presentation. on the

Let Eric Gerstenberg. me Eric? over turn the call to

Thanks, Michael. you joining Good us. thank for everyone, morning, and

safety. As we do, typically begin with we'll

possible in toughest We do Our day. but to internal people began QX the of with safety. some continue push our work employees every that way to an prioritize ensure single the environments, safest awareness we so in

year-to-date reflects leader stands incident total now at on industry an basis as which a X.XX, in position Our rate recordable safety. our

continuing else, to all send uninjured above That on programs of company. every day. people to comprehensive our our XX,XXX safety the home are foundation represents We our focus

on to Turning performance X. our Slide QX

experienced both as expected, pricing and but pricing performance growth quarter and as financial year-over-year not volumes disposal as affected positive SKSS. in containerized record strong that again largely continued of healthy momentum. environment had quite for both recycling it saw Our we result demand solid of was waste favorable segments, in reflected overall, less segment we the DS services

of SKS, in turnaround detail in originally than of Mike QX decline scope energized the profits was discuss and fall top consecutive Within with steps HEPACO. In this we year is but a ago, and by acquisition quarter in far line and March a we up part more this demand will service growth our meaningful significant in this included extent revenue business. for for September. softer-than-expected quarter, are were Our the resulting field taking from Industrial and our pricing Services, anticipated, weaker second business our showed of less that the more highlight business.

expected, the cost incentive costs efforts quarter of expense, in health insurance partly result reduction acquisitions, and were by compensation. care and corporate As as offset costs higher a lower

of EBITDA acquisition. the X% backlog technical rose marked in revenue. Turning XX% XXXX this in higher wash growth, XX consecutive reflecting volumes from the network utilization driven increased XX% strong with more pricing our Incineration million pricing core its X% from with demand, volume. Safety-Kleen primarily the has segment Services up other XX%, HEPACO $XXX drove branch services QX. basis the to quarter year-over-year accounted QX XX% also this organic Adjusted the reached line, X. improvement Services we robust well. Slide quarter XXth to grown adjusted increase, steadily revenue services ES of grown and translating up by of with XXth mark EBITDA. the of services. an offerings underscoring Average EBITDA as Parts Field incinerators growth million by year-over-year in Higher increase network. in in X% very push a and through for segment's X.XX Environmental were performing in steadily in on segment the in improvement. replacements to grew volume our the and adjusted increased margin on remainder in pricing margin in point in XX% revenue, increase consecutive a top half HEPACO segment's revenue

to Slide Turning X.

construction to our more At while an as network it XM outlets has of Harbors project done to a we reshoring complete glaring visiting America XX mirrors at and commercial in XX,XXX-ton the project, had scales week, history addressing need incinerators next spotlighted will facility for final market's flow incinerator is facilitate XXXX, up at waste time. North the will in economy hazardous The the last the building streams. state-of-the-art the new highly for on the for trends the increased complex over help team November in in Kimball, as need is our Kimball accepting need closure I the the a on the team for pleasure launch Nebraska smoother opened in capacity industry with the of waste recovery capacity. the incinerator largest track Our in and successful Arkansas to begin inspections. such address of complex outstanding XX a we captive Clean completing through and incinerator an Kimball job postcode as months. level,

upcoming confident We incinerators spending like today's regulations network that entire the the Act will favorable is outlook, and from government Reduction were our infrastructure our dynamics PFAS. market benefit areas and the disposal reshoring, are on inflation Act including bill, in that future whether and programs, CHIPS additional

testing or permanent solutions assured of provide forever AFFF chemicals, our for landfill incineration, of to for next stringent form marketplace during can more offers our incineration a will meet November, mixed and remediation sludges round seeking incinerated have PFAS from or to are customers that the and EPA's Harbors Clean scheduled disposal, contaminated a full we EPA sequestration. In solution and testing. through scalable PFAS, and commercially Regarding the multibillion-dollar that filtration to destruction are water. onsite whether today participation DoD standards foam soil, whether the like committed concentration these testing this firefighting but emission or emerging options advance

destruction will testing We that can be previous that demonstrated incinerators PFAS believe of our of clearly outcome results our safely confident eliminated in up efficiency. to continue [Indiscernible] are We the the data testing. in support to that

that, We are hopeful over next to me Mike? will that to turn our year expected the regulatory let framework Mike. issued agencies. With testing by government be things

Eric, and Thank morning, everyone. you, good

Slide to increased X% segments XX%. and increased The X. Turning SKS revenues saw EBITDA

we -- improved that over the not this months market deteriorated in this was helped particular, better we oil collections our ultimately about expectations closed into the oil million. The XX% In the September we a seasonal in as is saw softening base missed XX in into momentum quarter market million QX. at Noble With drive carried $XX out see pricing segment did waste in to acquisition by oil Eric Average mentioned, the summer Oil small cost and translate up as backdrop, demand pricing in quarter this of However, better level and quarter. in the fiscal significantly QX. pay-for-oil collection gallons. demand we

at our price. possible with We our re-refinery the feedstock balancing need best getting oil with are our

-- more -- blended Group III including gallons, minimize capitalizing low Group producing volumes, been Our partnership total QX. more blended footprint has on our strategy various again XX% II SKSS for more to to initiatives, for cash in of opportunities up products. In and flow from our volume the total volatility our our sequentially XX% QX, carbon differentiate from selling of and

program our III we have Our forward, production. full-time Group moving for next is and re-refinery III selected Group

multiyear As we're it in relates Castrol closed our BP to this loop support partnership, program. excited to

large We the that our sales remain and -- standing partnership. and the confident optimistic will marketing about this sustainable are market oil potential of advance more and We their of fleets. sales prowess

allocation to X. capital Turning on Slide

positioned execute the of well business Our the are for it. and growth remains by to strategy we ROIC, driven

balance, strong in our Given low and leverage cash expected flow QX. cash

smaller We directly doing of see the example which years. incinerator opportunities being business invest the that. with at replicate the continue best Kimball locations to like we look Baltimore other we the this we coming for areas what in site, believe in also expansion But to we're in can

returns of the front, early M&A with this are completed we deals the happy we the On Noble and HEPACO year.

we as to candidates Our evaluate robust and pipeline of both acquisition large numerous opportunities, continue is small.

acquisitions flow and and best conversion seeking bring through shareholder and that increase cash facilities are drive or improvement unique ultimately We generate margin of economies returns. can permanent scale synergies assets, the

and also of decade. healthy we America buyback to outlook for our our come We environment past for in to a potential on QX grow overall ES North PFAS autos an needs opportunities rely the favorable infrastructure environmental final for spending, plan captive Entering and pet including demand have have intend price industrial was to quarter and dynamics, continue Customers through their positive restoring, the pursue closures. sector. effectively clean as to

the field through and enthusiastic capabilities. services potential response On the HEPACO growth its side, emergency the for about we remain of addition service

demand reduce in feed to growth a response expect We our business businesses to we continue steadily and taking QX. turnaround and to cost in grow will in re-refinery network. given to fall Environmental in this our We're into for on California Within our Within actions and and volumes SK to Services weak current environment expect structure, the oil base Technical revenue blended taking stabilizing we're return season Services, including Industrial also to XXXX. to idling that here steps continue products. business focus SKSS,

refining environment. bring to re-refining aggressively costs in manage we spread challenges some XXXX our Despite to related market plan growth and end over strong uncertain an let our to also CFO, a We offerings, for production to oil we expect customers, network XXXX. With with as momentum of pricing down turn Dugas. disposal profitable and our our Eric across giving in me us it trajectory positive service that, facilities base

Thank you, everyone. Mike, and good morning,

revenue year-over-year the achieving results income delivered margin continued We EBITDA healthy growth. to statement Slide quarter, and Turning expansion. with X. this along strong on adjusted

delivered disappointed be did in mentioned, we challenges late our Eric strong. strength deteriorated, that for Services wane as summer trends seasonal to core in quarter. our particularly demand business, business continue some not carry promising demand SKSS, over As QX QX began typical overall, the the we in Industrial the were we in to but had lines pricing into Within

Core of $XX we is EBITDA primary line, on more better by million basis total as which incentive as in ago. as top and revenue basis facilities in services year-over-year. of compensation. a points a that business from nearly similar segments. and On waste points $XXX adjusted into than improvement year-over-year growth, lower leverage growth field factors from XXX the this the again basis $XXX Combined XX.X% ago XX drum expansion operating million with improved reflects a behind was organic margin percentage was higher million SK of of percentage revenue the XX% as the QX, up acquisition-related both synergies QX, we growth the for was well grew sizable in revenues the The mix Adjusted businesses year generated a our acquired year in record achieved up noted. SG&A the our from as continued disposal than network margin our in and a level XX.X%, expense margin received good given to we Eric or revenues EBITDA the period. branch as quarter

to due XXXX, in amortization million, QX range. and percentage anticipate came to in be from expense Depreciation as a year we up year SG&A ago at mid-XX% full revenue our continue in as acquisitions. $XXX of a to For expected the

and the to we depreciation XXXX, range increased $XXX of prior Income from an year. million, $XXX.X million. XX% the continue net of in per earnings operations For prior $XXX income to XX% was expect versus million in amortization QX from million, share up $XXX.X resulting $X.XX. QX to year the in

at and million to Cash sheet. XX end were and million short-term and the $XXX QX balance since marketable the million, Slide year from Turning $XX up the securities end $XXX of quarter began.

in to $XX sequentially Our year, acquisitions. in after growing first due the million largely QX QX receivables the and million $XXX half increased of from by

platform have than increasing HEPACO transition balance. is added integration system delayed billing in our that complete. the rather onto our HEPACO into of We receivables cut but onto now The expected QX our to to billing balance it.

delays billing associated and cash year the fiscal and flows transition the impact extensive will XXXX. timing However,

Another wanted with have start to inventories of QX. the particularly increased to I speak our increase to relates is SKSS balance year, million, occurring inventories, XX Since SKSS. buildup our overall, oil sheet it million the of in the XX on item as in

volumes was less demand softened As what and sold expected. has than are

idle California inventory expectations our looking we Mike re-refineries for forward, the this referenced. Given decision and made growth in production

billion QX expect loan in the inventory $XXX just be hand. work $X.XX slide million of reduced you debt. in this the acquisitions we We incremental business year. ahead balance our increase year excess in term under We with the beginning off ended as levels quarters to on see and we earlier on HEPACO in Noble issued the the to finance the The since this currently reflects

healthy. sheet balance very remains Our

X.Xx was quarter with XXXX. until material debt amounts ratio coming no debt-to-EBITDA net Our end at due

will repriced approximately interest loan, going result savings We also term which we that in mid-October in forward. million in announced annual $X our

rate Our end was X.XX%. quarter overall at interest

in its construction on at spend Kimball. million That down for activities prior to Kimball incinerator to with spend Net X% on and million, QX commercial XX. launch. QX net in flows number year. operating Turning sits year over of cash in $XXX $XX year-to-date for up million our CapEx, now from the expectations. Slide includes complete from was prior disposals, cash line new $XX $XX.X was from just million, Total

ahead the adjusted mentioned in year, but For unbilled impacts working prior quarter, to the inventory a of million, was was $XXX.X capital levels to cash million ago. expectations which flow short of $XX moment free AR increased SKSS our due fell that I and related

For we range of our expect million the the to and in for includes Kimball This to $XXX spend Baltimore XXXX, continue the million. CapEx facility. $XXX range net expansion related the purchase and be of to $XX million to

stock During of total $XX we $XXX for an at million, QX, price bringing $XX of a our a year-to-date back total bought XX,XXX average shares million. to share of

adjusted increase represents guidance which to XX% full million XX% Oil. in our to our core to guidance a the $X QX and businesses increase of for and Most will midpoint XXXX close XXXX. million out HEPACO market guidance our to at with XX. from strong assumes are now from year to approximately expect adjusted our conditions, $X.XX our volume This the midpoint as EBITDA XXXX. XXXX ES expect XX% of revising we Environmental XXXX Noble approximately healthy results to billion, our we of growth. adjusted follows: segments guidance a from contributions EBITDA now year EBITDA $XX in Moving on Services, translate In We Slide Based

decrease XXXX to Our XX% pricing, of SKSS on EBITDA now to XXXX oil current the guidance. year demand, full base are lubricant around market at midpoint XX% adjusted conditions the from corresponding guiding based our we and

promising in continue in into actions that a experienced fourth corporate, some XX% our expect to taking of costs. primarily seasonally up costs we relates adjusted underway have midpoint highlighted, Mike to corporate quarter. demand guide, XXXX. QX to and and negative the XX% we insurance The and While initiatives related expect pressures are the to compared be the increase at acquisitions Within we weaker softer we to to pricing EBITDA year-over-year the

result, of we into expectations estimate based matter our SKSS temporary lowering generation $XXX be continues we impact million of instances, The range $XXX delayed of these dynamics XXXX for flow the ES market the system. cash stemming impacts HEPACO from to the and timing primarily are issues XXXX, And we positive For million. that our in cusp coming worth are free cash and that AR carrying just confident midpoint inventories this year's we into are cash or cash segment online. approximately the integration of waste a in are Kimball lowering on experience higher our to of our factors: business of free $XX are flows the billing a a as are drive to flow In adjusted these both We timing. $XXX on million we network, and million. In closing, our X year to

the services of as addition business well field HEPACO. SK is with business branch is our Our performing

is believe this are While in positioned services in as we growth we industrial industry out the the that year, the leader. fall limiting to turnaround business close well season

call remain up that Christine, business continued having the we our are and on into place. right that, XXXX in a please the long-term will for XXXX. And challenging another SKSS, year of profitable be open For strategy about for focused with prospects strong after stabilizing growth, and questions. optimistic growth we Overall, year

Tyler [Operator Brown question with the Raymond Instructions] first comes line Our from of James.

base mean is that the I So is entire weaker, cut, both almost weaker, you a your you talk core ES it basic the oil it QX, but is really on tracking QX SKSS. I just culprit basically seen here SKSS. can that guide? just mean the weakness feels markets. guide business that have first Is to in is of seems we me implied expectations, about SKSS characterization? I fair on kind mean the with get actually will, if both

SK we with really containers, The volumes looked Yes, is very of margin to Eric. the our the Tyler, from was and a from growth Environmental consistent and strong. the expectations quarter. a business network ES Absolutely. needs way board customers, business into standpoint. those is our I'll start. What meet continued said you the just both across at the This volume

job really handling our quarter. again in awesome network waste volumes of facilities once of did Our record an containerized

strong. manage services projects. with some core we business with together put service that they another that -- So branches outstanding. the quarter is of Field just just really was to HEPACO working legacy continue field manage great And good addition our

little the a talked what year. we have quarter for the number happened IS that same we of -- full was and challenged look for for expect is the the half the great. group that about. as really the Services of at the When Industrial expected turnarounds quarter, So was turnarounds we you second

However, they they challenged. close are market is the and cutting to size scope down. and less, run do really continue turnarounds to to that the were do that wanted needed refinery The out but crack those They're year. spreads work the to of and back, only

as really side, script, oil On about was by in declined. talked all the base we that SKSS the how challenged

took CFO our engaged reducing of the of actions closing team so we the throughput manage but throughput refinery to there network changing that. Newark make aggressive we inventory, and environment. also rapidly adjust that on some has reducing the pricing on And sure the correct to And to down our PFO, our by

So across doing forward, there. and in manage low Items all cost implementing confident to we're really engaged network the that we're that go board the that. the at we're of we're

did business in the From thing we I Eric got of I'd better. right. said, as mean, were some nothing changed. add, you Yes. The where really only that parts ES it Tyler, July, is

but wouldn't is It it. is SKSS. parts the change guide, isolated really was That just a answer. who Some guide little to to the worse,

Okay.

those kind to gallons, right 'XX it about million think than oversupplying good XX of trending it you're you really question position guess, to picture volumes about to just or you're sell effectively Do into you market. the actions some a need probably harder it, bigger take a back that picture that to RFO push SKSS? I the to that? needs think way $XXX that having your CFO ask big own And Because SK. be scare though, collect sense do make I'll will in Is So taking, longer you'll now, in towards then away? wouldn't a and million

Yes.

to the push to on of we're model. actions understand PFO, network that readjust the some you're that. helps our the by refinery Newark First, taking we is risk that our be CFO of on And accordingly. obviously, Tyler. collected aggressively on, The gallons, dead will those at that And the production reduced through gallons

So we're taking that action.

certainly go early XXXX. to we XXXX, budgets that a our that But in $XXX at the forward we're EBITDA establishing aggressive we're into think of bit to parts actions number. little network. results As million, restabilize grow and back from our taking we're XXXX aggressive The to still for be going into

And we happened remember let's bought that Yes. the in declines late that pricing quarter. all the

where we time of the we're of system. times, many we your that and take with talked so and of got that and way to comments, Eric that declines of late, pricing happen I work it Tyler, does we And that. with through the is. its and kind as that's adjust kind it agree pricing, about to get the kind to type speak, after doing

Okay.

but going to lot there's on lot a there's a SKSS, So story. in the

bit 'XX. little So about you talked guys I know a

you It to U.S. some used key words 'XX, we positive into you start there? like growth if back backdrop decent can as in profitable to Dugas, I a go a we've Eric the feels but level 'XX talk I of high think, out at drivers trajectory sketch the I got think

is up, you should SKSS, stabilize got are turnarounds online, coming You've maybe a Kimball tailwind. PFAS

some any out can I us So but you threw 'XX. at all shape guys things, give around

would comments be broad helpful. any Just super

Yes, is I'll Chad, Mike, this and start.

a the of kind kind you read of back prior our and growth So process. the was its and budget changed nothing annual of a the changes has and trajectory. reports couple the to year obviously, as -- But of formal that the half said quarter, nothing Eric come through it of business in view reports, positive front-end in --

question with EBITDA the Assuming which in So our other of it to changed mid-single-digit about single of it the a made when And deliver Eric's And in be business to we will publicly, breakout ES no kind is ago, the as that lower there. digits, we've environment, of kind where presentations tried to than change maybe in that. higher right? mid- comments expect kind maybe the probably that. very today. percentage of and and this macro SKSS, ES flattish in you revenue to stabilized, what SKSS, nothing and we've growth consistent organic get than and probably got adjusted Investor be we between to revenue said growth think and Day And answer corporate stays a minute high is

really and PFAS, that be So publicly [ very, the times, refining to all this with has is all pressure. in And catalog pricing kind all under has price us taker companies said really of changed been you environment, We're real we're has mentioned, what be in it things be putting been now, those M&A, pressure. you the very very under -- of incredible whether space, that the nothing we It the announcing the many whether -- it we've it oil consistent ] it we've that's there. see have whether seen effects rollover very environment. -- that's a in

we profitability and gallons in that, faster to input have up. our be will [indiscernible] than to be our pricing We faster that adjust on that get

work inventory last real a 'XX Kimball off, shouldn't X on drops in down. gets cash drops better capital be story. good AR One really quick. working Okay. off, Baltimore flow But and

more. agree couldn't I

have So happening. things natural you're going some to

back to business, to be to a Dugas positive. on down. get a XXXX, We're good go have we challenges, that those going going very also those of the some levels, mentioned CapEx roll grow into of to right? done fit getting Eric normal and some get You're on spend unbilled is in to -- that in obviously the then things to XXXX. We're Kimball challenges down. them working So unique But down catalyst which going the around the working they'll of going regularly they whether QX inventory billing numbers is

great be XXXX. should that also so into And catalyst a

but cash good So flow, it's I'm really flow. where rollover bullish XXXX I flows feel to that land better you good to even it, get see I of cash a we just a answer. harder, here cash to about of got hard mean even before if these budget, to again, about continue Dugas But we some mentioned. there's feel our little about and working capital challenges Eric in

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

about want think decent margin why you reason kind got to year-over-year get IS. if fourth looks we will for start would bps softness it XQ? a Tyler Just to in like proceed Would generally have leverage with and in shouldn't If be expansion think about in spirit XX some to is a the continuing Any the quarter. we be positive generally of similar favorable, here ES margins XQ? XQ. operating up here mean mix I outlook in

mean had basis of was base. absolutely of it will year-to-date, what. I kind know We up points margin XXX we

look you of total. kind in If ES at

be the IS is the base about. up points. of ago, IS minute number we some you QX XXX XX% challenges Gerstenberg would Eric backed of say I out a bit miss would that a that the though just IS margins challenges that mentioned So if in a talked

that and into that's think of think good a QX. I kind continues I So kind of story,

Yes.

to about, quarter. point other starting up add to that this we're to talked that Just as Noah X Kimball we've

forward comes quarter. that of fourth that work from inventory, off. some costs, you still deferred our move as do inventory see as to But when So a we we along the lot have start-up we through have

think some higher got little around a the be is that to I'd kind flips sounds a I just this here time quarter the frame like next and priced inventory it And work market. to over challenge the you've to comments bit through the that just inventory, going versus plus, there's of work love Yes. through SKSS to over

base and now, So work you But inventory to how in in get does of in should just kind take margins the segment hit on a your excess the plan through it take margins of long XQ. case right sized? kind

is Dugas. question. Noah, Yes. this Eric Good

think and mentioned at California refinery. in I down SKSS, well, Gerstenberg to as did close inventory Eric you Mike the decision the as make when look mentioned we that

And there. plant levels It's inventory get down higher that our so going rightsize the to it -- right to XXXX network. probably a that than into take to the unit But demand us is see that's to overall that you're we at bit help going is back right, the cost at.

run a as squeeze through, see here we'll should QX little So next in year. we that inventory that but improve

So a but move, did all there. benefits see of we that -- reasons. XXXX lot We should different into be should

comes the with of question next Our from line Manthey David Baird.

some that but wrong making budgets just SKSS only then. you're Group since headway quarters that looking you're sure EBITDA? your rate And First of come hit Can about question you and I'm X like in number 'XX, and terms seems with the comment from? the space, thinking you've about for made -- think million we're Where at did it. our Is $XXX hit million 'XX $XXX expectations You some and making that in but of our it the III expectations. things even you talk that the doing, I about though circular are run man expectations just that there, right. in

of as We're David, EBITDA. with on year to harder the lot III, We're noticed doing about your guide. Group [Indiscernible] XXX with We're the ] range you're got more of a blended gallons. observation. We things, gallons, probably to get you go partnership. right with our under of midpoint the castle in [

of kind structure have really to have We our to have -- as to well. go cost we look at

take is there. up. around inflation I But guy costs to kind We're that things of time a lot think areas. bad doing to a get of that's going good other in trans profitability

taker in price a the are marketplace. We

So that's to in way got better. modestly something our work assuming we just through. I'm we get XXXX,

I is there. word the think out but assumption, underlying a fair that's modestly

based the the on original HEPACO, wasn't Can assuming your then unplanned this you given flow the was just you us AR free guidance Okay. delayed And that? walk to guidance. on collection. mentioned And I'm it that in that adjustment through cash --

issue Really, an Dave. timing. Sure, it's of

in billing So really the of the to August a what was of off see kicked frame integration of June. billing other that. attached out in kind to some needed integration system getting time that to of be of the And lot door. kind the August the the And the began there's in month correct the a to in resources during into it's July, bring we corrected. early into our just bills learning those. Obviously, curve areas We business a happened to from needs delay

it generation totally we the and up, other making We've areas is caught unbilled cash got kind is that, of it. able last complexity were some across to in into also August. We I and team but we response we move a into -- get business get want helping there your that. quarter, we're We're emphasize it fairly this began in ER yes, that to situation about of talked on get what of traction kind jobs today timing of see In as to see. it the last to to is correct had expect some probably delay levels say But question, the team the some business, week to to XXXX, to as quickly. July But with some in going we the answer integrated. late come what the happy was very so didn't addition large about associated out it experts I'm adds to fully

or So -- anything no we emphasize see is want just but that to bad debt that timing. I risk here. it like

have for $XXX one. you million number still over, what, finally, share exact repurchase. Do calculations, the Okay. And you us just By then my there? have a an on quick

million. $XXX.X

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

Adam inflation on update Can more thinking And pricing? is is what on how This Jerry environment? Bubes And today. hazardous for normalized incinerator your you inflation is how tracking? internal landfill you are just and a us about

Hi, it's Eric Dugas.

see, of our kind cost to probably side, question, it icing Eric But X% some inflation biggest than being the then So Mike the I'll to kick on things still continuing stubborn of the maybe I'll inflationary it's pressures inflation labor take the continue I I see softening. more generally what we're where talk there's other P&L, we like to to maintenance structure think we're but piece and areas little to X% rest on like And labor see about obviously, seeing. what the that's while and we'd think there, inflationary of to over across methodologies.

of X% of I maybe anticipating So wage inflation but what X% for quarter. with. P&L, to to here probably work it think that pretty proxy we're good the the probably a turn for good a to is number Eric I'll kind next And that's is entire pricing.

Yes. (sic) Adam about And then Jerry [ landfill. just talk to incineration and ],

program We across network. price to have improvement regimented drive very continue the a to

robust network As X% pricing, the have we on about. across able were just continues same single to board. a price talked as to about disposal talked going be we to incineration increase at rates digit to side, our landfill, drug to continue across the we've incineration, high We're grow both those

pricing to our expect fully continue hold. we to So

with projects services have continuous You there's But from us together you discrete improvement mind, think pricing. takes M&A, expansion? about that just environmental and margin puts putting and I how are and the that? and about offsets And large the should in also puts contract takes. think you this early some on year thinking then Can XXXX help terms in

Yes.

both towards. be doing We initiatives, have continues pricing efficient see us at help Kimball, the within cost but more business to that we margin also will what get range. initiatives, as goal get be to network our volume to start and well. to long-term going to up there we're we're initiatives have to ES continue Our what We'll XXXX. expansion that's going to And XX% drive throughout

margin us all to to our those the for will expand on EBITDA continue So allow services. environmental

to we bit provides HEPACO year. reason when We is have about it. good this the amount there's EBITDA won't -- margin that's that have going fair -- had this expansion that X a really spoke a -- lot Yes, adding into kind a We're in going really to more talked would no new continue and is months. I of levels, XXXX. a own our That's growth to in very in to kind business. and incinerators at X didn't that to We're pricing One on leverage that going have to [Indiscernible] based containerized network think, that say rollover We're leverage is and EBITDA of of of business from record Eric network, Adam, thing drive high of continue being waste a of good because to margin. of. going Eric we the to for little good

that -- or first the So success that that of that see into our the really XXXX continues as That to leverage years, different. that year is here I [Indiscernible] a XXXX. last ability couple and drum really even is incremental and to for drive

Securities. of comes next Our Solow the question Larry CJS line with from

follow-ups. I few guess just a

ES segment, more but you discussed this bit, the little clarification. just a a obviously, little On

specifically little to piece. EBITDA shortfall the guidance of you're front really less And basically So terms making Was it up the bit obviously in the growth. you in mostly trimmed margin end know was industrial it's the most a does been year. bps just the than I that like half feel of of of just high because up you by the XXX haven't, that on

-- first question. my but of that's sort So

Eric Yes, Larry, here.

definitely drove marks You're go the of turnarounds, kind the right. IS IS and less down. slowdown The and and that

business or moments if what of to digits estimate Mike rest As to, margin you of IS, ago, be few improvement. I triple if basis of alluded would margins kind of normalize think, the is points close the the a XXX kind you

was the there. IS certainly, major item So

mentioned ramp. bit think sort Got you. little us QX. of of you And remind you on a just startup the Kimball, cost I Could in

actual that in you $XX rise that had as continue of sort pace. a contribution and would million still projected you guidance, it ballpark? nice Is to 'XX, EBITDA to in out how to $XX XXXX. And look at think does sort not of of get kind you the had but million a go I you

number throughput was We XX,XXX unit. referred our That's million probably No. of target this our tonnage the million contribution about To to EBITDA to Larry, and just the tons Eric year. Gerstenberg. the plan next is range. that to in clarify, expected $X you $XX there, manage through that unit,

it. Got

$XX to that's right, million, plus or XX,XXX million capacity, number, would I minus? a $XX So guess, a peak be peak

capabilities be and incinerator up capacity we will would X that we to production the get that over plus. continue there No, of over start to tons as the years, leverage XX,XXX, the to next continue XX,XXX, XX,XXX

it. Got

just acquisition. then sort integration the you of it business the integration when of HEPACO, there run feels out expectations. the there? to of any synergy the some the of continues at trajectory change itself platform, know of Any side? kind in ahead change outside Is first billing Okay. the And on like had numbers on or the on I made thrown you

Larry, gone Sure, HEPACO and the talked to internalize one. has in quicker acquisition take synergies last that as of some ahead about quarters. The We're Eric. far probably great. it's schedule I'll we've couple so of work,

business ahead really We've So QX, as the in about well. kind we kind QX seen into of some is as talked of of jobs, larger schedule. that led

to and continue about that. so together far. of the than that's working integration So after But source see They're as I been expect that, star to we the we almost better. and It's being that that, businesses glove, probably and performance of other X unbilled, and I we've the ago, totally talked the kind spot, corrected. moment said X hand well in be X has a

just And it. could Got housekeeping ones. just I if say a couple,

you due intent of bit incentive that just comp. the back. compensation in corporate, year know mostly that lower to lower lowered for guidance. a coming the the your little just On Is I

that's correct, Larry. Yes,

the lastly, about around that to Is million Kimball right? Is million. million million And run I year-to-date. Eric, -- said $XX $XX in still rate is Baltimore just in it. CapEx. think still Got you $XX that $XX is

Yes. Yes.

year million this $XX Baltimore. So $XX add million, $XX for then million at and Kimball

of question with the line Ricchiuti Our Needham. next from Jim comes

to some the of IS wanted business. go to back just the in portion the I commentary of So

some the the And you wonder elaborate difficulty of actions it's other seeing you're you of mainly if on kind in that of the sectors. there, So just business? any refinery market are in taking area? the in Or this of softer pockets some other part I could demand

Jim, I'll start. Yes,

was on around servicing. the and we're that extent the really vertical So IS, scope of refinery our it

the the to earlier, mentioned continued be same that going working half QX. we've we turnarounds been we second of of and have through turnarounds As on that start I the still the year, expected obviously number of the into

held back turnaround, In just really of back to held the the those size, that originally on costs. they manage scope of refineries to things length, on that, their they some addition the what the planned,

real the affected. been that's So area that's

That's with to of we've that is embedded into T&D Industrial within side. gotten such vertical a XM. our Our embedded customers on that the cross-sell environmental Services other traditional the a example service, really customers leverage on the strategy and as chemical side, but we getting great industrial really we're customer

such in to focused diversify some The the really bit complex that we've services trying that of on environmental dependent portfolio. as on of So there. specialty lot done to our it, a little less that developed more traditional we're those being industries teams refineries on across season applied cross-selling that chemical A and work we're turnaround really being customers. that

we're our pricing. Eric think after services with that industrial important, the as incredibly cross-sell actions then we also taking, of leveraging but you verticals said, other when getting And about kind is serve

of the certainly kind our that so kind to with with we been services. structure mentioned, X% labor-intensive get to and that make labor do sure of for it's industrial are we of heavily staying they That business. rates structure -- a our need are in pricing and up cost our As has X%, front

And so those really margins. wage a pressure types on of inflation of those lot put

getting important our So success. is critically to after in business pricing this

right as run positive that out to any kind PFAS to the 'XX. sound you about it. that today where rate looking opportunity business And now? the is there sit to What business think it of Got at about relates way And we is guys situation. fairly from

that. Eric here. Jim, first on the Yes, answer I'll take

board, as from continuously talked about, grows the we've anywhere XX% across quarter-to-quarter. pipeline Our XX% to

that see And environment see really really levels, continuing what's PFAS increasing see to the to is side, solid demand. an regulatory robust there are is yet in demand. even good though not particular, disposal about on and the we We still

pipeline our that's why those there's are is parameters customers already in growing. regulatory as And reacting place. So if

in water and opportunities some opportunities our samples that. we've projects on across the now media been embedded board. getting quarter incinerators in PFAS And It's last the we're treatment. QX, really nice our our landfills, for So had in into PFAS into upfront seeing group

a and to interacting in going the us regulations proper if as really do here. whatever way So customers into good, they're solid with future to manage are place strong, pipeline are the

pretty we So feel that. about solid

Next of question line Brian the from with Stifel. comes Butler

First one SKSS. on

spot at discount much level the spot that but the a you larger would I look they not when II were prices? Group Just that Because down, prices, was selling to there versus are quarter. changed selling of curious warrant if we the if and the of couple kind in just that's a third I'm quarters. over And at that you're discount kind impact last of the saw

going of spot say that I what published reports. published this price, we the at you same I It price from paid for certainly is that Mike. Brian, And price way, versus -- say that completely directionally, getting are oil is price, kind market it's market would is see would in level. not but is disconnected the that completely disconnected. same the

putting that's did it what into September. we're really we And got we together. -- we So kind saw as through of really

a coming a the their lot out with pressure much they're marketplace, oil. of of an you see, base refineries oversupply of under, how in kind putting lot and pressure results, As of

asking on and on the putting contracted And so both both kind discounts seeing are kind customers that's that of for our market price today. they're our pressure really customers kind of and spot of based

your and of to job a our more to, kind makes it job what's indicator So that's not is point That difficult. but good happening.

up, that can see when to to Is that actually long take impact? or III the opportunities, material kind start measure flow an it's does that we a do cash when And of to on Okay. and that at something have or the look than ramp then really we going XXXX, contributor sooner you that? Group become

or that benefit on obviously, certainly today. III, So Group the we see

Group III. one plant producing have We

internally good own it in that's our been up path. teach another That that using save. positive for down around been really we'll go we're been a lending you gallons opening Now way -- that. has cost but one, that's No

Castel III, Group On we're kind it -- of seeing is winner here we benefit that to So think our today. in be just and on say that's through that, like as for very us under into time. I XXXX. Certainly, been ], used much II. takes of control, I'd [ that's it pricing a because as Group on real and Not

As their of you they're team this. fleets them cap have sell team. on ability strong long know, and sales the and cycle these very very They very over. They have changing their strong often, a types with we is very marketing into sales quite to bullish a that -- meet about seem

but not don't to think but nothing and XXXX small some us kind yet, have XXXX. real wins XXXX, it's into help We to certainly going that's we of already, as move needle look going be I XXXX. the to a

no to momentum in real in think we're going XXXX, I see doubt.

that Do a where number year again, is 'XX on maybe then guess, revenue looked ago? kind and like I last PFAS. year-to-date for what on X And have of just a that one, Okay. you

that we're around probably million year. run million $XX trending $XX to rate Brian, Yes, this

for the year for rate rate run that's run So the full year, full correct.

Yes.

million. at exited we the year think I $XXX

the I ran I in course think we've the with made, It quarter-over-quarter look XXXX, a a as you the that's year kind probably that's year-over-year. of progress of fair estimate. into think fair and

question next Research. Our Wolfe from Timna of comes Tanners line the with

to related Just questions if had I base oil, lingering X could.

charge pay to does in for long conditions. from of So process up that? on dime, one of little that is, changing take doesn't a any how flip you on know flip kind it to if I speed there bit but market light elaborate way you do oil? it could mentioned And a is to please the oil

your actually gets there, prices we been how that have appreciate We quite price on is of question. kind we discussing they as that's challenge I a announced, fast It pricing of and oil were the No, the you take. change. negotiate, this, kind as they is The base far moves and bit pricing immediately.

to to X day, weeks go it. it I buy paper shop. we got ship its process tenders from system. to On I to if I change got the also through oil process, Well, oil to work even the it, oil that sell and got way X charge takes body we [Indiscernible] it auto

a there you better, very network quicker, So that helps the there, to gets there's decision-making way inventory in faster being need lag more get a around people and lag But about its we that natural and a will difficult need around. being to sold, natural that's moving and CFO ultimately going fair, but faster can't re-refined transport there's we're be it basal is works be whether our and lowering get there or in as backing thoughtful because and in be pricing, it help. we just to lag it oils there through,

facility second Okay. one. need the Makes Imagine, California. sense But little a there bit might That's talk helpful. how any being re-refinery. costs about And add then on or just other be is long that to could the it to exit you California you cost there implications remediation in I might are a higher be mind? to down, more or do in or keep part

no oil. No, titled base producing refinery the just really the additional from really We costs.

remain that for the throughout on that But long So the next no having we to term, move right additional here. conditions, fourth X And forward costs there. idle. how they continue cost certainly months it's quarter look. year, as refinery really to depends market a remain to we a Actually, plan savings

we we use site, We we're so site a as going to know, still other it do Timna, environmental remains can still standpoint, re-refining an more site. still center, have it's at a active oil. to things be you charge kind the waste so kind the just with from as using And an of distribution not facility. The still of lives use

question Instructions] comes of next Our Tobey Truist. [Operator line with Sommer the from

the an direction industry or the are as participants is alone what with this overstocking other kind in Is well? you problem? re-refinery. some Are players of doing? or capacity, And in that start you idling describe -- I'll work industry-wide could market

is this I'll and Mike, Tobey, Yes, start.

actually the saw re-refineries So in the a refinery I well. don't know if and as PXX closing closed you process California

highest think Kimball network. as our in the that mentioned, of I -- So is structure the cost actually

BP I as reacting only goes the you to taking profitability that is kind speaking I'm what large you cash case, where all-time company in of all-time the see saw in far their refining I of as a lows. use so see that space. at think lows refineries And flow

one all be facing. So public that of dynamic running market at what No that's company, all kind we're refinery would companies. that

for So to it's same me kind feeling that, speak I'm the of but pain. to hard they're sure

other XXXX. Kimball look North market? overall With increase into we and the capacity as to What's coming the new capacity in respect to American

tons many of units year Directionally practical in look going Arkansas, And then in is online. XXXX, how in the will XX,XXX timing probably Kimball, talked capacity is tonne XXXX into -- another XX,XXX that. based be just on the coming at of so what we've range. But our coming -- about a to unit online the XX,XXX

that So think about in XXX. it XXX, context,

let to our going to We're me capacity, at total in that. [Indiscernible]. put operational XX% be fully We're

like, you you and how or value price customer Last customer to retention sensitivity would ES that. like and What take Appreciate raise you one you look or seeks for company can exchange price me. the does in describe for provide? as either a churn the

Eric Tobey, here. Yes,

field great customer So very the from for has The demand pricing. think receptiveness you our board. really The that churn robust job we've continue very share of our demand. results, And out actually to and as across expect growing a market done think I to we high, It's see is there, done and low. the has sticking team services been financial our we continue our to service them and And allows command though, really get service had great that that's board. ability our grabbing our of our facilities We on that a of network disposal closing service that able to fast great quickly. opportunities, network. the and customers give job great network because a price improvement but across of them us into service to that waste to

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

look for joining including everyone. seeing stifle weeks, above the forward enjoy event Barrett Chicago. in the day, thanks there. Baltimore there. of to us and all, and We'll in of So several participating Please events the event in some the We coming [Indiscernible] rest investor be you in today, please the

thank you. your conclude participation. This teleconference. today's for We you Thank does

may lines You your time. disconnect this at