Perma-Fix Environmental Services (PESI) 9 May 232023 Q1 Earnings call transcript

Greetings. Welcome to the Perma-Fix Fiscal First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note being recorded. Please

now David Waldman, will turn the host, your to over Investor conference I Relations.

You may begin.

XXXX Thank and you, call. quarter welcome everyone, conference to Perma-Fix Holly. Environmental Services Good morning, first

us the Louis and Dr. Executive Ben this On Chief Centofanti, with morning Mark Officer. and F. Strategic Duff, of President Financial are Vice Naccarato, CEO, President Initiatives call

posted The financial results, XXXX containing first on Company's Company the quarter issued a press release web site. is this also morning which

like after (XXX) questions information the any any have would contact at additional the or Communications you XXX-XXXX. please Company, If about call Crescendo

I'd non-GAAP statements Litigation be Securities also conference measures. financial meaning like deemed to within may Private certain remind the Reform everyone Act the that call within of contained certain of forward XXXX statements looking include this and

or revisions or Exchange upon forward the hereof forward no are and U.S. commitment Securities Company than which this to unknown known results as disclose cause looking and of call on fact bear historical conference release. well These with statements. circumstances as to after factors, forward any and the the in Company's morning's statements and makes uncertainties subject events, materially of filings All Company statements looking risks other statements press could this are and to a statement detailed differ that the from any actual that Commission such facts, performance The to date uncertainties other looking risks, are statements.

available the our news discussion to today's information on its consistent website. most of today's non-GAAP addition, references historical non-GAAP and provides of measures release comparable such GAAP the a In include measurement that measures reconciliation is directly performance, to additional in Perma-Fix measures. will an believes comparison

over to go like Mark I'd turn Please call now Duff. the ahead, Mark. to

right. David, and good Thanks, All morning.

to issues moment of earnings postponement this the with let call address a yesterday. associated the take me First,

XX-Q or to required related new on up relevant received we review this happy the XX-K. all potential to the to certain know, information evening impacts. for with be financial considered any That We filings, information impacts financial to the delay accuracy or us necessary statements. to that period filing but associated review filing today. Company's our ensure must the report said, We're of you the late inconvenience deemed As a apologize the complete Tuesday be able delay, to for and our able to on earnings of Monday are

While growth on for. a pandemic, we due hard back challenging XXXX so was we're working the COVID-XX year trajectory lingering the of to believe effects that we were

to our we starting and finally in realize evidenced quarter. momentum are to had the as performance by improvements results We prior the our pandemic this

to a in pleased report we year. XX.X% profit the revenue increase the same first to and period in increase last quarter XX.X% of I'm gross compared XXXX achieved an for

quarter of growth XXXX a weak the sequential achieved us. even to the also period we fourth be traditionally quarter though first Importantly, of seasonally compared XX% tends for to

opportunities The worth backlog both in improvement We continued growth support including increased provide Treatment saw the in segment. our and the has and the steady first several throughout that into growth new second a reflects that which revenue of XXXX our strong also projects quarter. It's within March, quarter initiation both Services revenue the of the XXXX. in quarter segments noting into

for well of Diego. of sole for San the of included the recognized option additional million of past to awarded program months dredging as be few in remediation the Defense deployment As solution Department through providing a mine our projects the with XXXX phases revenue we've that a have settlements value of forward. solar new the abandoned over expected These were approximately as moving recently to announced, that's we remediation contracts technology uranium over million EPA, totaling potential eight the $XX $XX in

plant. have contracts decontamination initiated of and support of nuclear new for the providing for power Los technology decommissioning support been a on-site National Alamos an the in innovative Lab Other

we've In Army programs competencies well addition cleanup the decommissioning revenue backlog, to support international new Corps with DOE recent increases requiring in the opportunities as projects realized several this of of as U.S. projects significant with in remediation activities Engineers’ and potential. initiatives, our Navy core bidding sustainable

waste utility our current receipts. shipments with waste expanding sector. a a waste and oil and steady gas the a the will contract segment, open regional well. Treatment waste with markets waste not that and provide received the treatment over new is as the the contract the Within of new within signed, recently was we growth the years. Once open this to power we offering for in benefited services markets programs our our DOE door increased improvement from this from This to result we've utility utility commercial a opportunities treatment -- in industrial in past. seen We Along IDIQ will five next

contracts, receipts existing through won and and waiting in submitted increase are waste now. awards both in that improvement project continued see bids to an expect recently segments in for contracts We work

over pandemic trend the lingering to quarters effects continue We as next of subside. to continue several this expect positive the COVID-XX

time, advancing several initiatives enhance we're rapidly that significantly to same we revenues our our the and potential the long-term believe At have backlog.

the Energy, these important remediation record of the the towards Hanford and the mission, two realized Department the have reprocessing include services waste to at we end, of with of amendment the scale direct low which Energy, of for steps to waste large opportunities report, decision the but this represent pursuit Hanford. our the or tank waste incidental WIR Towards treatment provide Department activity approval feed, DFLAW, of facility,

profitability double given the of These strategy vitrification This the business, our and up. program meters on at nature announcements of the And fixed this over positive current cubic final construction phases XX role combined. more significant by impact will from treatment XXXX years. we our estimated cost production of over annual to through annually start than waste plants be our the next that DOE rate our have is Hanford for the tank the in currently waste be in DOE importance underscore

The disposition disposal program of off-site by tank provide outlook project, low is to as as DOE supplement Bed at support Hanford what Initiative known also of we of to level TBI, in a solution the the waste site. Test refer the stored to which a million the potential tank continues for waste as recognized gallons the DOE mission vitrification XX be the to

few progress is gallons which next grounding maintains at the program, is TBI Perma-Fix waste to over to capabilities permitted today receive vitrification. and based cost which quarters. the a per while up within of our month on and grout technology, to gallons compliantly dramatically continues the reducing the gallons we Perma-Fix and to facility, XX,XXX Northwest year ability with to next outfitted these XXXX compared expect expand to million tank safely to

we optimistic which opportunities waste in latter that any also now our about sustainable several half We're announcement program international in Treatment Europe. believe day the support will segments. expansion of this the a year We pursuing and throughout revenue would Services additional provide could the remain Italy in that of both procurement be key

leverage our announcement the increased will core in Slovenia, to provide competencies. opportunities the technologies Croatia, and and that addition potential and This near-term an Mexico, will our UK we market in Canada Germany have

opportunities four available that been In sustained at to addition, through receipts processing. revenue. well we're inventories DOE up have providing large high backed to provide could from include lack large the waste due efficiency processing or as as waste several waste of sites that an provide expected $XX COVID million potential pursuing are to to quarters three annual These $XX next technologies opportunity million the

in improved of a our financials EBITDA for back a XXXX of QX to compared $XXX,XXX QX $X.X moment, Turning million to of in XXXX. income of to an loss

expectations SG&A indirect positive our costs. Aside expenses to and reduction billable revenue impact operating our from forward, having our growth continue for a we EBITDA in a on focus on going

meaningful a profitability going As a cash forward. and improvement result, flow anticipate we in

a wrap So to clear capitalize we solid significant to it's a federal is us backlog going demand expect there on to that and of up, forward. budget

As quarter. a see momentum And improvement a I XXXX. remain mentioned second of earlier, into we will over the the seeing confident significant we're heading as continued result, balance XXXX

this facilities a up and scalable have our We continue in infrastructure highly invest of and and a position to that believe advantage pent in capabilities we're take great to demand. our

predictable to our high our segment the revenues, Services and expect continue segment. flows to within Treatment from we increase of As we margins incremental benefit cash

a well result, exceed bidding the the through pandemic waste we of to prior positioned attained we're to capability believe increased had As expansion performance treatment federal profitability activities, budgets. we improved and

discuss I'll note, financial that now in detail, who On the turn results Ben. over to Ben, more call will the

Thanks, Mark.

revenue. with start me Let

was operations that's XX.X%. continuing from $X.X first to last revenue total the increase $XX.X $XX.X million first quarter million million or of of quarter year's in an Our compared

saw improvement to waste trending $X.X by our process was Our the process last part to as shipments the waste backlog increased segment of that segment in from we the in volume each Treatment revenue began the of million higher revenue also received Treatment of XXXX. while improved in Service our The increased in revenue. and/or upward segments the led segment project increased result

Turning to cost sales. of

incremental first or up variable an higher XX.X% increase $XX.X Our million Treatment that's expenses and were to revenue that's in compared million the prior last or cost of EWOC quarter sales total million at the our year of primarily to year, expenses $X.X disposal were to facility. and trends in our the segment, $XX.X XX.X%. of compared XX% In related

as mostly well facility. to last depreciation were unusually as high which also expenses Northwest costs the natural fixed facility expenses year at in facility Our Pacific to EWOC our impacted up Northwest, gas our due compared

expenses XX% were XX% to related in Our lower due year our segment Services last incremental expenses. to compared project

million by for $XXX,XXX segment Service our profit segment the Our the both in $XXX,XXX. improving segments gross was Again, $X with $X.X improving compared million and XXXX, to quarter improved by Treatment

by gross the project. waste a primarily Service but revenue segment of Treatment profit the increased facility the and our to in the profit and also mix from the higher the revenue came lower the from profitability was bit The fixed was improvement segment improvement little costs. of margin related both Gross result offset

$X.X G&A total expenses year. for due XX.X% to compared $XX,XXX million in and primarily revenue XX. increase offset consulting Our or prior or salary. the revenue of the were fees, employee to by fees million benefit small was of lower of costs $X.X higher X% audit The quarter

the of Our year's last $X.X loss net loss net compared million. for was $XXX,XXX to quarter

for basic share $X.XX per quarter $X.XX the of year. last loss to total was a loss Our compared

morning's this compared operations $XXX,XXX adjusted press in a million last defined release EBITDA as continuing of $X.X to from income loss year. was of Our

to XXXX, cash on the balance end was to I'll turn in balance sheet our compared the the comparison sheet year. $X.X to year-end at million $X.X million the of

-- accounts receivable up fourth and by increase Our million both quarter due to were compared year. in quarterly to combined receivable an our were revenue up last unbilled $X.X of

end the million in $X.X of March up associated as vendor March production increased from the $X.X the reflecting of And but million with XXXX. Our backlog were approximately of costs last well consistent year, with timing is million current $X.X of at $X.X was payments. which XXXX at end liabilities million up our as the

at end of to debt Bank. was our Our $XXX,XXX total quarter owed which most PNC is

finally, our continuing And flow million. cash $X.X provided cash our operations for from XXXX, activity was

by $XXX,XXX. payments used totaling discontinued used in for as of continuing PNC other $XXX,XXX operations finance, spending. cash expenses which capital our facility $XXX,XXX payments as for our most monthly financing financing credit was for of and was well was $XX,XXX. leases Cash Our used to operations our was at Cash investing representing $XXX,XXX

the back With call operator turn the to I'll for questions. that,

Instructions]. [Operator

question Shields. first from coming Brous Howard at Wellington is for today Your

Lou. Ben, Mark,

families hope as all are and your First of I all, of that well also. you well

Good Howard. morning,

Howard. morning, Good

welcome. very You're

shares all, of of I an investment confirmation should the Perma-Fix. disclosure, own opportunities. September. the And basically focused in in is question quarter like QX that operational $X.X family banker of raise have understanding to members this the ago acted of of be year vitrification as million of I My addition, the opportunity. on congratulations that of your My I'd on timelines disclose my full and capital plant First for With a on XXXX? and congratulations

on-track has second of for Yes, regards All there's several the they Hanford to half published getting seen are in been recent mission. XXXX. schedule and least the Howard, the operational in are expectation if a DFLAW hearings of at indications although congressional DOE still that I've

revenue Which means basically that in XXXX. from

to Secondly, a like take QX expected it's XXXX? is my confirmation understanding gallon and this place that of the basically I'd X,XXX test

and the that's extracting safe waste allows status of of current tank. then is point. get This us or to it's out to the and the be it regulators that year extracting once end the state Howard. tracking pull is that's And general to correct, basically expected the this our with them it DOE done, -- That they call will able approved, a the start D&D start what waste towards The to but way. for is be to working to after to seems permit it's that be of at plan waste this

my waste low XXX,XXX XXXX. having a documents basically XX to activity understanding Hanford site. but an know we Thirdly, going the waste day I sometime In there will always are of not commentary, particularly test mentions full test, thoughts probably that incidentals in That's you be evaluation in clearly, expected understanding permit for of And as XXXX for scale the final go according this But about out your title my gallons. had million reprocessing TBI would need secondary are that? and you're long are to a to XXX,XXX gallons. permits third X a at what there, vitrified that the is and that multiple implication QX. larger, waste that several to test XXXX, they XXX,XXX gallon by for but QX for a not document, the is a a additional and

to Yes, major last that's what be is phase the used gallons. year, And call be phase a the an grouting as that. Phase largely tank talked plays definitely we XXX,XXX was in DOE which followed which Phase has should Phase map appears X generally gallons, part right, later DOE to in It's talked I as call what this road after just moving away have about XXX,XXX true a to faded X and refer Howard. that mission. the moving think a for with gallons to that over. they forward the I is Generally, TBI But directly operational has into campaign up X,XXX the about we or X, of mentioned

So, Phase that That'll really view That to what that and is all move to get forward the DOE [Orec] grouting, gallons regards with all take anticipating on us it used we are doesn't to fits happen together. X, of after has in it and report (ph) that performance can and we'll to which call the a phase type We're X,XXX the phase. in how with do to of several is all generate operational regulatory approvals share that an thing. months place several has have to decide because is how that approved. of roadmap processed months next

more grouting. late we'll At So XXXX, we'd likely be expecting. operational sometime an receipt in what for least of we're see start that's ways to of

to Any comment National that government time. over favor Washington the absolutely Academy discuss of massive using Richland, fact TBI, in is Science, save which this of is saving the that? and grouting having X on government. that in webinar could $XXX the to the billion of grouting a about method is and period comment about their a the grouting June They're

of and wrapped in those there sure since had for their report attend We'll last talk kinds the things. (ph) grouting if well. moving their near meeting as And then, And just those you answer with and regards with I assume intentions They address to those the forward up participate for be as not report about typically questions they'll year. they their directly are that [EU] actual findings the an and so final what Yes. on that. have up periodically Hanford, final appropriate those in we and Richland. definitely I'm

a start supplement lot decisions boost the program Academy in to of of grouting as National big has by XXX report the Science analysis they've credibility basis support their of facility. DOE page in of considering a grouting DFLAW for the been the and the the done a to So to is

on and tribe movement for unions of of existence with comment comment. Umatilla letters the written bane various getting TBI one that that been the Can both our TBI. please? My have opinion that, my understanding So to in and you favor entities their government it's change in moving and the both one understanding have the have forward

written -- delegations Howard that grouting to we true is well and certainly congressional implementation. expedite as UAXXX their the That is and both both and union on Yes, and either have and endorsing there, the to the Umatilla’s both fronts. the DOE which state letters, the support support to very area, appreciate of central that's true approach

that's DOE's get this yes, that with So, an in forward support of big position moving as plays to part and important been role their a well.

that So true. is all

is Control from I have and my question is five three, to that's Energy take more other Waste reason build called Solutions, the would two, The people get plant, the systems. one then basically question And to four that it is understand four, is one. there understanding a is like comment. competition And no have a answer up permits, the three, is some there years well, I asked, years me entities competition.

and And secondly, you're incident cross creating But statement? material rail Palatine, you'd made via going to it's comment just is tribe looking at have land cross type the that correct almost radioactive that probably to Umatilla to I've basically with basically Ohio. a Chernobyl that's a

The line existing to facility has and grouting that's constructed, ready not Yes. capabilities permitted, we're regional in the the to that support is that that about talking bottom a there an is go. area the facility

that would five even not the longer get that that minimum It everything you some have I take public to And through company time, years through. have be construction through get be to the very to a based on seven requirements permit difficult. of would quite then a go and able getting go permit, to maybe would maybe very, goes which and along comment think with and

our makes to a high. competition entry, very facility barrier that So and limit does local it for

after waste way the would at another least miles the this treating it Howard, Umatilla which as handling As facility and right to through safest off-site, of outside fence absolutely not XXX the a at TSCR the far Hanford the off to basically. have be the from as comes would local would tank raw facility, you’re be opposed the which waste shipping reservation to is shipping go right,

it issues puts -- in entry that as difficult would position would with anyone that of be be optimum the concerns make Richmond tanks. barriers and much So have things not for facility very safety us for key a in on more doing would financial an and very our there to well technology with as which competing that way grouting difficult,

when gallons others is, to probably and consultants you treated all implement question million million tanks. to my these drained So But was gallons need water be ago years the of XXX is because via my you understanding talk stuff your that understanding XX about in water from last XXX of vitrification. of the and need tanks

So Is million not correct that period. roughly. XXX very statement? million gallons XX effectively, treating long gallons you're over been It's a

exactly that's much. We don't about Yes, right. that talk

So tanks, in liquids. space basically, out save DOE over to has years these the the pulled

and can save space money in You liquids there of you're you lot and the concentrate add a tanks extract those more waste and into in. if putting

been that's to the than you to liquids that it done of more tanks, bit out, liquids get to have pretty all some the add And others. to out. pull slurry little the There's much waste tanks. But material the

is it put addition of you're in. consider of of those right, be or three two a after but that you have So say it's the closer would the slurry on that gallons, true definitely matrix you total tanks removal multiplier to four is million to you're extracting, difficult material depending XXX definitely absolutely to the but whether or

amount just remembering those because to waste technology need of got. when about over able capability million a in DFLAW definitely facility million a supplemental total time opposed year they've a years. is concept the treat a in important tanks as to it's and designed DOE of to how to gallons year much be is that XXX So consider gallons reasonable process

So inventory waste important inventory point in the Hanford. that is regards is at and the to what an or backlog

Well, all if guarantee then? its you XXX we'll guarantee by do years, alive you be

no that, Yes, guarantees one Howard.

you And revenues DFLAW, really in last, comment? XXXX. the my earnings will but with comment point By and comment. second talking about you're and please? that, Is a can that, Last know. I it about after that implication fair be TBI

XXXX. ramp a get up a and amendment Yes, up other startup that XXXX waste late in identified I We see and a mean XXXX, between things. really ROD XXXX, ramp DOE chug in to in DFLAW that of it TBI in number we and see of

increased So half the see revenue expect on XXXX well, objectives. we would the year, those second of based definitely to some

I way will but of briefly other, number one or my in have we running be with always delays parallel the are other in That going also a initiatives There notes. that mentioned those.

back of ramp half like really with the for initiatives. period so being these the XXXX big XXXX operational And up the of some looks period

we're earning and out $X XXXX, if margins. We're from Well, certain are there's DFLAW million a use for what like But in report terms talking I'd implies project. TBI. I My on of based there both roughly margins this a those number operational in about out fully in research a comes and if about just gallons comment. Perma-Fix that operational talking share

range. of initiatives. lot cost other Yes. in generally I variables certainly Howard, revenue we well the would the that not these and margins that's EPS for rates number would things as would the the in defining in and in given anticipate A would them. targets. things, for of components. are these EPS that I range general, that's the regards agree anticipated be assume that relative to of yet the in there's variable But But change and can a to cost as defined range

Mark, Ben, Lou. Thank you time. Talk all. another Congratulations.

Howard. right. All Thanks,

Thanks.

at Russo Your Brian is next Sidoti. coming question from

morning. good Hi,

Brian. morning, Good

Or clarify, DOE? just that full Is fully operational? up they X, contingent Hey, at completely separate for want the where two to or all TBI DFLAW are Phase on ramp production the is there's tracks $XXX,XXX. being

DFLAW to from is The come different two to or source, can the it different two DOE plumbing from is other. tanks other through those could There roadmap how But words. the to to same how cover use map. the reason tied close waste together, they're the really basis that's of DFLAW specific is use everything, on to DOE's same optimal going it's the good is tanks strategy some or the going way an fit funding of they're because tanks. gets TBI between Well, other roadmap that's are tank grouting. -- important. is road the waste all objectives. only going how the tanks. a to or really about going of it Brian, only come get can by question, from and in And The back different programs each hardwired tanks

so they are is program and a DFLAW. the necessarily not So it strategically looks tied physically it DOE at supplement together program and grouting to much will as as where a the TBI program, be

in means is their I've get said As want supplement they calls, grouting, that said with one operating which means DFLAW to DOE could core which facility say operating. other repeatedly, has goal then get to TBI, that and

First, pressure there's if to on or that, the there's continue that -- would grouting delays, other accelerate moving the having if delays TBI additional program getting grouting, said program.

tied So physically. not some they are in necessarily instances, but

the for a in And on you schedule Okay, is How ramp DFLAW that of assuming take full think do half of ‘start’ the would operation to up production actually it. facility got capacity? or second long it to then XXXX.

XXXX. for There's as the I I the two at first hard facility melters That's say. mentioned, we'll know one to rolling, really and get me DFLAW late

the get But facility would don't gallons one full but million speculating, take The coming to anticipate I to behind that that one complexity would how XX of that don't know I right it operational I'm schedule. be months to six the know would year. is, to other a anticipate a fully far one. behind it be

I it's don't published. think been

melter So operational. XXXX, I'm first when but sometime that late be not in online, for will one is, and second could scheduled sure will exactly assume come a is the as it XXXX mentioned, fully I the one

sorting EPA. not that mentioned close but are soil Italy. Then the Navajo, awarded? to some Okay, discussed Ohio OSMS the you've others then about in or of the there in I assume in you which And you opportunities great. JRC, won the can Kentucky are think you past? it's larger earlier I in that If award with the talk and being the was the

Yes.

Kentucky So $X OSMS at announced is valued due we from billion. Lexington in significant to that's a audit DOE, OSMS, in And have which about job any role by the minute. Ohio. be

in hear to to words, we're So transition implemented, or full month skip waiting by of be the implement on that's other September. due through and And transition end that.

an have on award May So based make they to the whole in meet goals to schedule. those

job, other that's early The one, JRC correct. is

We indication any from gotten are them should now. day literally we that to that. hear some about waiting hear We've

get as we're that to But that as require So get million expecting $XX be will hopefully there. this is some $XX before soon to million in signed, we And together the which million. announcement contract $XX starting range negotiation that's summer. likely would

one this also we that in Croatia range We in million have another haven't we're mentioned $XX that would start the that is bidding on also summer.

about uranium running June, hear have is In that. abandoned should -- and mine, we We now. which often its transition or mobilizing it's

that it seen through to on summer. that. a that task continue. correct one action only some are the that expecting but revenue or -- IDIQ, are expecting will we've projection from All come like get that's any or rolling I have anything that don't once There's on other is not a job, we but about assumption. out it we're that's $X I mentioned, million As good indications

right aircraft have behind enterprise to -- that for then also and We we're for now several and be the that. well well decant as bids safety for as as carrier some new is right the the Navy decontamination facility as a Nimitz demolition comparing facility submarine

term should a jobs it’s The near summer. in starting submarine of So the both We're $X those are now that's that that Rayburn, range. be on procurement rate space in in or Sam billion that.

our very a exciting Los through number -- jobs of coming So a IDIQ. lot coming it's like out that of Alamos out good really has jobs we're

all So in other be awarded words, competition, just summer. to this limited

of win our If to QX year. share. include next QX that opportunities Brian allow that us we will this into really we our backlog, good mobilization bolster summer if summer and numbers and Really

they'll ones be hopefully win of And we ones impacts number other starts I mentioned. coming The share, getting So more don't ones swing other procurement as up there's after we know win than procurement. full smaller into haven't back of process too, about that that hope the I COVID. number And from our yet our share. a

the of lastly, revenue the you realize just then from any you that noted And earlier. contracts Did in $XX of new revenue first million quarter? that the

That about Very way putting little a start our or out the procedures approval That's got services to project weeks we're typically in document you starting development not happens. on. of And is June, projects couple get stride to it. of client there's six July. real where much. and full see particularly the May. typically There's revenue you're got $XXX,XXX in plans. hundred pickup thousand, now And is what about there typically a underway probably together hit from March month, where really The $XXX,XXX in

there starting receipt a bit but with very waste was So one really is project limited, in or again $XXX,XXX associated everything $XXX,XXX, of in of maybe kind of March little QX.

Okay.

is So which that in backlog, versus quarter? theory? Or is incremental last $X be was it of million in flat to going your

of No, that's get about, project treated gave within kind the The you. explain -- and talking particular the backlog shipments let number fairly come that. well, I quickly. me it's we're But

what's of left the little project very one of there's So in it.

small it. a say probably would of I part So

great. Okay, much. you Thank Understood. very

you, Thank Brian.

Taylor Ross from coming is today for at ARS question next Partners. Investment Your

a real amazing gentlemen you, both outlook. questions. ask congratulations couple a and pretty also and wanted nice I Thank on of to quarter

remarks, Europe could be that something their them be of about the bit little program, Germany number mentioned It opportunity a a talk denuclearization talked you there. it prepared German fairly your about given a opportunity? would that lucrative you seem you First, might or and in can

makes and or waste been industry about for a industries. three to to really us, and medical has long for been sources signed XX Yes, four a receiving commercial good months We've Ross. there Germany company with a now going term continue. going over months that all from for for contract shipment of them that's continue. that every We kinds about receiving manufacturing been We've

with repository, a us. a in to in in still thing The storage country's the for land construction, number certain has great been be and to That's That's has treated waste characteristics facility. get for there but large of cases. It's anything to national meet not the is to they're Germany all storage It's ways. facility it's that. a like support not a building and a

ways in which year facility So us shipping open, in it it two. once folks are can to it that is or treat put so gets next this they

But opportunity initiatives. by or companies of in support that the of with been a commercial that manages working reactors reactors, utilities, treatment and the scale that decommissioning the to describing what is the power have significant couple large support you're There that, utilities hired to to addition brokers is we're there's

are in in those facility forward. do UK if with in XX can before provide big the our paperwork We're get unfolding. we to in just support keep Once I've moving get -- to arrangements services. regulators U.S. to months that, in place in the we the operating starting the that mentioned And releases just markets to up XX get about treatment other that able a would But German the we in start treating to being way. press if before even anticipate these work

process. decommissioning as opportunities big they start big, limited Germany competition their very for So capacity, alternatives very very those few and in limited folks and

and like. past early You you how actually steps European very about Can what out look firms -- you the you the the of that just talked limited a you do. is being there can you on in playing fact you've see that about question, what talk number there they're my competitive or this do Nimitz. moving about Can answered the you the -- with mentioned which also Navy. ahead environment talk Can next

that You have be when steps do What's out the submarines, and carriers. Navy? need believe year I concrete and more ship? you see would look to programs to we for have of think are you these projects multiple multiple like going each

They enterprise, carrier impact has of What as their the aircraft We're is the it's that's model. defined model. obviously assuming on through of It's kind reactors Yes. it. famous environmental statement. see is decontaminate it, and kind eight which The a and radiological five carrier contamination off basically year program remove asking to waste the decommission that then scrap you the and it. ship to is to do they're what

take price of have all work. in words, very much is a your slips there five off job. facility which and they're and all do And high ship risk in to that It's a the of done site, In of it. fixed in privatize their those a to you the that one Norfolk and it It's take coveted to currently shipyard to other year bidders asking pretty is be period.

only in firms very There's there's firms few do few there's places the have that that. There's few this only would these So risk. And few that a ship country. that could only a a kind take breakers of capabilities.

So QX or of get the be several now award Then way team on right draft XXXX. those will to of due arrangements be fee the to is to big with that with summer and here things the the and in summer enterprise supposed probably working three teams really and in bidders to in and final develop going for are define XXXX. them I'm And the out enterprise. rolling now, there speculating three we're Ross, our

So dozen the in smaller. summer, I waiver the other behind as is same nuclear right which ships And about mentioned waiting. much, are a is Nimitz this much it, there's

taking requirements as up providing any old slips not these mentioned So and are the and expensive of Navy. security very I maintenance to ships and value

of So to to that get they're the their hair and starting push out out of a really them way. expense make get

the it's exciting in. for we're program So an business

Is mentioned Okay. assume more there less you're players, process? and I working than And so this said four. several in that and not with than basically are working there someone one means teams three you you're with several you

bids, I met this. of each with the or all of three of as probably bidder, to one one include or that we've three Each those in companies will No, talked companies. I think bids four all are dancing mentioned, casually those

same we're the close now decommissioning in. that type about So and work and talking are to folks doing we're that it's pretty a of the

their wet same that getting of the are it's on folks feet group So this.

the really we're I really in good ships on I It's five very in a out. because happy. USS years. been which like right the guess position that is one complicated to the McKee, quite help and have schedule. done a three clients our really It's of team a mentioned, us puts project last recently doing qualification We're good

will a boy. primary priming be We the big to sub we -- are not big boys or a

see the basically being place you these and be great you contracts under that programs Real a a That's have do and currently efforts. on fit you contract that would new just into towards you to DFLAW for operating like, expect or for those quick, contracts? these

one we're with existing rolled on where the we contract, be a contract, got waste. DOE And That just over Yes, two support It is has IDIQ kind for do in likely that with. -- to national and able unfortunately one past. an contracts, incumbent on them that. the one anticipate which awarded Ross, which we're Cincinnati, contract, not that incumbent incumbent be that out the right have worth of it covers have the or the We'd novated and over. be the the of with the just we could be can one we would to used, ITDC used its most to of been

I the So anticipate would that be case. would

be could contract Our novated.

Okay.

that And of it's all nature, we'll where won things so a you've that is in and press major will not cash we situation revenues that be change release comes that. see essence, flow, for but in looking and the a profitability with what

units on and be under about very of make to handed task we we'd mention to order us But minimal the of have receive be as a they'd certain talking that because you proposal see the that said, RFP depending the and that together visibility. amount That's just very right. characteristics correct. likely over contract, waste I'm would a put increase. award the much We'll you're that's exactly pretty for and glad a will

have I can be or see sounds in profitable You are It to going to more a here. next last Okay. kick generating the quarters reasonably positive both like quick. How And quarters. you're quarter to meaningfully quarter progresses, just up the questions, quarter, you currently up kicked meaningful EBITDA should nice powerful some meaningfully close positive QX? start real then year two we're away more as we How far EBITDA?

Yes. QX. where And right It we're this to it as we're a sitting time, We're about with as we've through from positive a at expecting think now. halfway profitable trajectory point of be said, QX been obviously QX I looks on like income. in

your quarter profitability. So expecting we're to be phrase this use yes, to meaningful

given by is, it's Have last marketplace. to to this it change take this more Congratulations my right time play you inquiring being opportunities. sell approached of mean the been And given a on we're far bought. the about that. in that in in out step. these a the the far That's honestly them is stage whether question uniqueness But this big think now? I strategic -- to trading your a Company than would role stated player you you the and positive I Company by it's idea what has would the real Company, at interested now, approached be and that quite you might strategics to us Company been get the have $X

comment answer for much I as folks get us have we're approaching have sale. say Raj. do standard far that the watched always We acquisition folks frequently. think can't Yes, goes. is that pretty get that now we'll on we think interest. question for I We quite demonstrating But as on to us But more that, over profitable see the we're to I talking if can't be anyone time COVID now. and to And through period some again it. there'll to get comment us

an no. it’s that if is is you answer What fact I will say there give the if

So the yes. me fact will no you that's that job. real thank very a that saying you're tell not you knockout much, guys Well, doing are

a so at think is be I you've honestly hard this that times it to too true, but story good feels worked congratulations. it,

Thank you, Ross.

Ross. Thank you,

next for from Your Private (ph), [Anthony is question Harpel] coming today Investor. a

Hey hope guys. Good congratulations are on quarter. morning. both well you and Mark, Ben, the

Anthony. Thanks,

give treatment the in on you can the UK. facility Mark, an status please the update of us So

You are partnering on? with Westinghouse

of its it's to is agreement primarily is it of spend kind the of contract. a What Anthony. JRC complicated. award Yes, way it. down it's comes time together really we what that on the I and on -- with written Westinghouse put know we contingent lot And

important was to that So us.

had that would be we our to costs a base cover that generated for So facility. base revenue, contract, margin base

have a And so with now sheet the is term right we -- have arrangement Westinghouse. we we

the hear JRC we'll types on We waiting working to have deploying in and bid. initial we're on today designs modifications designs the with some them technologies regularly of on facility of We're developed. be different

capital saying we a Westinghouse in basically and agreement, So and is the to sure which with since and all win decision that all clock since to make well, be get we to months a move the sit JRC then gone forward of if able through construction investment XX by make expect feasible with again phase in should we'll still starts. clock the Westinghouse the XX we the down them the years bid, has did we work couple months. permitting it's is numbers then And the

we'll again then the this And north should -- be Manchester in UK. UK. there So be sites and operational is Springfield just over of fully the

questions. just one my of answered you So

construction receive permitting that award. XX you So until JRC begin wouldn't confirmation would of XX the contract in months to take

contract is what the So timing announcement? of the award JRC

Any minute. Any minute.

and time an So to any the yes, informal questions And announcement. are my at some winner there's that award repeatedly. process. been make have us. That's them. an then There's that to get We winner to us they'll the time. discussions to they'll make send and these with planning the some questions They understanding hopefully will told of that's

And what that of size might be contract? the

years The RFP to they've for initial, years million for other is work. bid the project for The close backlog got initial contract. the of to waste the the that capacity actual They've $XX inventory XX scope the million. in requested within be and seven is to for or in -- that range It's provide RFP on-site. $XX extended

XX a the that would then start waste starts here in about $X and $X.X It likely generating year for us months. about for year. for so, grow and revenue really be it first ship not about or million to So from would million

is million million win I you the award. $XX mean, if So to -- that that $XX

$XX be in that time? to Westinghouse amount you revenues $XX in or entirely you portion of would the flow So to would million million would $XX some to that to flow that $XX of Westinghouse million over million

And still procurement space. this is in

the uncomfortable talking a about little bid itself. too getting much So I'm

type should explain thing. announcement answering anytime then So to to of don't a certainly in don't until and made. But selective we competitors we're question withhold spot, can assume that for I contract. that probably you're And have if an it that that procurement want is listening you

build Can Okay. production UK the this go you if plant of capacity be comment ahead on and likely it? would what you

annually. variables portion be to Again, relative that regards it of capacity of $XX to would revenue. would size at of and I of types full It million lot the backlog, Anthony, between those things. our anticipate a it's with be $XX a But all design, final There's the partnership question, would in Westinghouse. million

And of what of though amount terms this in the about just waste that could treat? facility

of types couldn't waste. the same to and it release. other will this all waste. types process this the basically going some in going press What be or point because you're It's of sludge we be facility. I at this streams to technology at deploying is Yes, facility. that waste We'll at depends answer Richmond is our It be it receiving, different that have our be a stream it's on whether complete combustible or of variety

be technologies, And -- upgrade to got operate. made be and super-efficient. to we've two engineering we've already now make we'll new so less from and will latest brand So be modifications what the to -- a but an it with those expensive incinerators some they'll lot obviously,

like. look we're to what this is about So going excited facility

likely cost a like have like. if of this you what get that at process do designs you would are that win a haven't point if sense build business in sounds award design you work you're And the on it Do what you still facility both final expecting? look might this the settled this it to

either all Westinghouse capacity treatment at point they this lot. or out can't in point, on put We're really an questions that worked a a what's those new they're of to it. providing depends facility, just of because or providing changing we it too to a permit variables and whether be the a facility use that's Whether facility other old this technology many -- lot at get a yet. such into that in, component It'd haven't the been facility add define the there's Anthony. for I Yes, capabilities

the much believe $X.X this that did the Treatment Well I'll million. right. question all which related in other How backlog. there. to points data is one Services? just then provide was stop of one call, I of then was Okay, And that number your versus you

X.X% backlog Hi million at our of all unsigned. about talked were waste because is $XX.X our are well, backlog, about that's awards Anthony. The we Service Treatment. Those I'll but It's it signed. clarify. these million new quarter, that sat $X we at had the now

approximately to services. million this So it's day, $XX in

All Keep job. Okay. right. the gentlemen. work. you, good up Thank Great

Thank you, Anthony.

Breakout from Aaron coming is question at Investors. next Your Warwick

call. the taking for Thanks guys. Hey,

Hey Aaron.

things to has I much I think wanted covered. quick pretty I just you. had everything with been confirm two

take relates this care I because facility really that it the as have themselves to guys on-site. all, see the care operating that to accurate? correct DOE or to Is want store facility, -- they of continue can't DFLAW the secondary without ability waste taking is my that it's of no of you it understanding First if

That's coming pretty definitive waste say it was, there's Treatment a ROD. no the Right amendment to statement. the other DFLAW, the rewritten off would I capacity which available now, the way secondary of for is why ROD the

So waste with limited that in know ROD would do there would defined off. don't is amendment. it or that very I they come could have what it that they very, to treat capacity possibly else

think statement. it's a I true So

way Yes, what diplomatic said. you very say for I to

of be once X,XXX is to gallons just through would, other has that that accurate? I successfully waste wanted But going send be XXX,XXX that it's would sent only the could the waste that. to they In relates and go be about thing that able they stuff to a chose all XXX,XXX understanding ready you of TBI all gallons if of of permitting to obviously Is tomorrow using to words there's the there there treated complete TBI, route. and that say As to be that to that getting test other it's to you that that ask it that came if this that and my let's you. permitting to about matter

level. TSCR out is separate it's cesium temporary That accurate. out so this of waste they pulled iodine completely stripping is end to the that have pulling that have now the of what call those They is off TSCR And of and waste tank considered by low tanks [Indiscernible]. DOEs a the has XXX,XXX the gallons in tanks goal year. been the big accumulated waste into tank. that and

front stop on the met don't tank ahead that and waiting several we that's waste that moving? pulling what the waste waste could not convince I the for sure has TSCR with And you in wait don't to out consideration in don't know be of DFLAW. is for that -- that trying they'll hey, And them. could DOE that And consider of tank road that's gallons but that, off map, it times just and temporary why DFLAW, I'm grouted them pulled go And XXX,XXX DOE the keep tank. of grout be that a that tomorrow. again, back gets if that. not to

testimony the point, in your moving to (ph) yes, with be that to Senate in Well, by that April was going there they're [IDIQ] indicated forward TBI.

facility. DFLAW the to addition In

unions seems would TBI relates it possibility. the stakeholders final So to then the be that supportive and proposed I seem thing And same talk labor it the this. I of first be all seems of guess me the to to the like also I page know seem tribes, think including. first of for was XXXX was on a time like this also as since for the now but be there

perhaps supplement realizing that going to think the direction? a forward statement that is is DFLAW competitor, to rather have the say fair changed move wind seemed not and a but that TBI is in I

then some result that true. supporting us work DFLAW. it’s to at that’s you realized parallel that been it's is and of for is to ahead other opportunity big makes. that in a value that all, point statement It's full folks hopefully, reason going provides capability but other it of investment Aaron, us, a it it's us. across. grouting DFLAW, respect And emphasize a for closing the and have fair it. numbers, come do we speed getting and folks And doing DOE's and that TBI, and supplement it TBI been I how much fruition long look sense a companies particularly been of of lot hopefully, that certainly the a the We And for support in does time is at That certainly few have and a think tanks a if

Appreciate guys. you thank Good luck. Hey, it.

Thanks, Aaron.

question is Long from at next coming Cast Fisher Advisers. Your Avi

Hi, Mark. Thanks for taking all these questions.

asked, the Thank but what just curious end? labor if about apologize labor I sort seeing one, been overall availability in your it's you're I of on and you. Just industrial of was markets

was big It at month hiring and lost hire a spree. QX a we trained become numbers. to for question. for us. the big December Well, good through pretty lot of impacted able I us. a mentioned headwind exodus technician into our Avi, risk month early as people We quickly December about that's a call -- at They initiative for I we think January. big had it that off someone had we've had been DOE labor of of the site and were level. the to Labor Hanford fourth the think really I a has We in quarter street a takes a because a described retirement the that

now, an of a was has leaving had rolling. We impact do we subsided. to So were surge the February folks job People definitely few have March January, but productivity. openings fantastic.

a just And of kind so an one here, impact. there two

the to QX limited are answer project like labor any. we've it been us to with behind very looks question, impact, if labor So able your and headwinds

is able the particularly. like looks healthy impacts at one us to got it now, It But us. been that's behind behind see And Hanford problem that get are reason And it limited. could don't happening getting why right we it we've we've anymore. and

Thank you.

Avi. Thank you,

[Chuck for coming Dickison] from a Investor. (ph), Your question Private today next is

Good morning.

raw the Just for of grouting doing one question materials. on supply

have XX,XXX of million timeline year assuring on you you're going material regard you of own and gallons to going material. supply heck the to do DFLAW. a either your could a all something That's raw a up you to maybe hopefully even road this a month grouting of obviously your you lot scaling of If to do with that get the But map way, before stand need a be and a to for Where own. a do?

can supply And domestically can you to that as source And source it speak you from well? whether multiple you sources?

a what fourth just time problems past. all we we've it's Yes, it but It's TBI a our I was it's not in We significant on us based of getting for very there recipe so basically mentioned the again, We had as had grouting not TBI, increase some certainly you supplier is some from the and can defined think other chemistry. was if volume. had grout do out specific a we now get characteristics quarter. in do shortage. We cement Chuck, the -- like have sources in issues needed.

get as so primary from we risk And see problem. as a this point that sources we that see in don't multiple at we time. that a There's this could and don't

you. Okay. Thank

coming question LLC. today Stephen is from Fein Sofein next at for Your

of Good on a day. questions. got nice couple Congratulations quarter. I a

versus ensure one, shipped Mark, position is not nitrate, in what truck, your ROD of in like it question, accented true that that January they the competition? the sections treatment And addition, out First came that really then short-term. like they acetyl by everything in wanted shipped

off for that landfill Yes, investment, local treatment DFLAW site comes other commercially type Hanford that do that's any they've very the which waste an disposal project with requires goes does in back nuance important waste landfill point, secondary anybody the a these support waste the is the and brand The that we Steve. that in to large that got, is new a of Hanford initiatives.

local anything ever an companies in ship provide it for me, It not for have the out DFLAW ship Hanford would off-site additional of for law support back does the it of to that, treatment for of of entry region other or but a ways treatment. to to program because So waste sense excuse disposals. barrier make opportunity and

My issues also or in that would you relating second for business when the you're would know TBI both be question words, my getting considered or the second thank directly, is handling represent you Have but waste? these is and you you, So to treating you treating something extraordinary from this if -- that waste simultaneously then you question you could secondary get of secondary DFLAW. do? is other

some we XXXX. ramp full to those we TBI, expect get through mentioned if do No, at to improvements need capital capacity I DFLAW. before were would up grouting both Yes. both We facilities, make to and as

with a significant DFLAW amount critical grouting ways now see of capacity don't ever for that a now path we So amount a significant being handle got. us. We we've and of can the

So, full than worry that don't it I of improvements. get see needing to all about the to or again, think improvements. that waste I until And capital the wouldn't for happening earliest. million or capacity we those XXXX in, And the capital of streams, until million late $XX $X more about all be capacity would

stuff this Germany. the European talking talking of some about about in plants talking you're England we When Alright. beyond are you're like

So to to work Is going here? that in where that example, be done? you Germany, in going that be done that done did going For Germany? to be Is where if be would done? is

them. as primarily incinerator. the getting Perma-Fix those folks Germany we've about for there Ridge know waste And Oak that's from that the long -- it we primary there I to now. the but our well, reduced, is waste goes over it's XX% to it technology Northwest. back and We're Germany, we're about goes waste stabilize needed is to And The ship think the facility getting DSSI now from

reduction storage their XX% get inventory and footprint well. stabilizes So or and that reduces XX% as we inventory volume their --

to that that continue facility. we using So anticipate

All right.

a goes the down. treatment, catch cost were a extra on at But significant the was think be larger definitely improves you'll that a the just function when your So improvement. pass volume? be I that particularly little able on will did financials of I Do on to margins time looking as you guys that or

on a component Treatment we the There the was Hi, Steve. side. Yes, lower of improvement. mix margin expect waste to

lower Our margin little waste normal EWOC our a bit than treatment. does facility

our the three expect So we as we facilities margins. traditional the see up, the waste at treatment volumes upward ramp to on trend see

$XXX and you thought if most a you think reality And like you be do integral that's part won, from of to they're and one be without diversification doing. you'll to the away you're million needed make and such to I that envision when want and statement for to at need change. the a here Company out out just Company it a is sizable I nice that plus I this is last what I that you're Okay. I Company an lost take that's million be thing to there. you important how and going applaud a seeking statement you're made the didn't be contract going brief but least the that Hanford. $XXX I happening. came

the when that icing be And Hanford and if then cake. on just happens, will

applaud So just it's and I story. I congratulations. you quarter I just wonderful all. applaud the think a

support, All Steve. right. Appreciate your

call and end We to any question-and-answer session over have management of now for remarks. reached the I the will the closing turn

much. everyone like the All on We We we to first shareholders conference you Thank of confident call. outlook for developments look forward unfold right. business. participating and in providing I'd through as thank extremely quarter for appreciate our continued very the to the our updates support QX. further remain

time. This Thank participation. and your you may concludes disconnect this at today's conference you lines for your