Perma-Fix Environmental Services (PESI) 3 Aug 232023 Q2 Earnings call transcript

Greetings. Welcome to the Perma-Fix Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

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

You may begin.

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

On us Vice also which call Officer. morning CEO; website. Initiatives; the containing with company's Ben posted The Dr. President Mark and XXXX press Lou on and company Duff, second issued the Centofanti, release Chief quarter is Executive Naccarato, President a Strategic this of Financial morning this are results financial

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

this this actual morning's that results Private other I'd that statements be risks statement and could forward-looking call and certain These to company fact Act filings the within detailed in Commission and materially are with are subject as statements. and company's historical to differ any any Exchange are remind also other the and cause than a unknown All The U.S. forward-looking non-GAAP Litigation Securities statements. like such factors certain everyone conference financial uncertainties to Securities company statements press measures. makes disclose from risks date statements deemed or XXXX the contained circumstances within no of facts, of bear forward-looking performance commitment statements conference after or the of forward-looking upon Reform the known release. revision events statements to and on the as of that well hereof to meaning uncertainties which include call may this

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

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

have trajectory a David everyone. we Thanks, returned All I'm and on growth report COVID-XX back to of pandemic. the following right. solid impact to are and the that morning, profitability good pleased

regaining We continue we to realize prior had improvements are the in to performance the momentum and our pandemic.

we year. of million As of last XX.X% turnaround, same for the period quarter increase for our 'XX in evidence to a versus achieved the $XX revenue second XX.X%

segments Importantly, we've compared XX.X% opportunities the growth reflects the Revenue of to into revenue both sequential first together, revenue sequentially. growth of Treatment 'XX. 'XX several growth both won Segment in of that year-over-year achieved in initiation also provide to support and the part new projects 'XX. and the the and of With our increased Services in early quarter backlog

gross profit In addition XX.X% our to XX%. from margin gross revenue and growth, increased XX.X% to by increased

these remediation materials in Engineers project and Los awards management. National task award Program, Army Lab Alamos an Department well backlog. X next for characterization, of of as our Services $X but that million contracts for Segment, combined Facilities Both years the we team expand expected and the -- the awarded including as include way. opportunities a front-loaded These order to for quarter and in of over of estimated support U.S. further core Energy. the Corps next be these were a the will the with waste of expansion along start leverage hazardous subcontractor their disposition are of the further 'XX Within support is awards and new from Reduction in our believe months we competencies, of few as recently are awards value XX to third The over of

begin down the projects to fourth commenced this also granted and which Princeton McKee in helped work have have begun revenue quarter. now that will awards We wind to year offset on earlier generate to and the

the and commercial Corps both within new international to as and develop well significant U.S. realized our continue initiatives segments, proposals and increases activity have Navy sites with at in of activities ongoing clients. as several Army DOE also U.S. including Engineers and We the

a was provides throughout Segment, our our This second the from waste as and the Treatment result solid we increased which waste during with our backlog 'XX. a along DOE strong quarter, of increase in witnessed here Within from our Oak industrial for shipments us programs facility plants EWOC an waste improved in sales visibility Ridge to volume for balance the quarter well. second steady with of receipts

is Despite announcements. an long-term time, initiatives day. that award improvement still announcements, in and announced to significantly contracts due are as backlog. site in revenues for new advancing is work award have steady the believe project the our The enhance these waiting We we few existing DOE bids a award D&D segments expect to waste rapidly and and submitted operations same and contract we're delays contracts, that billion any from track. have increase a the be the recent and initiatives support At both $X in remained Portsmouth to see our receipts in several to OSMS on referred simply mission to tied growth potential

the requirements, tank the due closure the to closure to was systems government's non-compliance with unusual quite later ineligible seen our SAM.gov me, cycle, contract to an commonly with awardee competition -- excuse have as ITDC management procurement a award -- contract an system. referred competitor including the contract, The tank for determination ruling for the award ITDC that

the As initiative a primary a team project the learning of our a which year. for for more rebidding include about third result, contract a procurement. We through DOE to quarter options time or X DOE anticipate the third new has this this awarding in could decision

by third Ispra, this of foundation both back and treatment These think, $XX award the get holidays Croatia. revenues held anticipating, existing in folks quarter million will in to soon within contracts which expected Perma-Fix be after frame. are open work estimated European September in the and sustained opportunities and receipts the to provide quarters range. beginning something providing the in time due annual a Receipt U.K. for we're relationships to their long-term several complete the waste European several announced August is our the of The combined markets strengthen IDIQ 'XX, $XX the Germany award to in in support next a provide and in Italy growth million I opportunities for JRC to

Test to following upcoming DOE tank in Bed of of progress. Initiative period permit public by support submittal recognized or continues as gallons tanks the gallons for of tank the The Washington to waste X to in to waste disposition TBI supplement X,XXX known the disposition DOE low-level and XX from waste a potential regulators grounding the The comment program, of the site. off-site stored Hanford was also mission Hanford Phase RD&D on mission their state this quarter. solution provide to And the approval the anticipated The DOE allow the the later from to the second extract project TBI will the begin DOE vitrification completed as the is by be the year. million a program for of state waste demonstration to

these expand reducing permitted to a million outfitted X alone. maintains up over Perma-Fix and capabilities and risk month the vitrification Northwest compliantly dramatically XX,XXX that is in Richland annually, gallons which ability as with facility Perma-Fix compared gallons our safely to grout to while program the to to cost, grounding capacity and in well today schedule

state Perma-Fix and regional that ship recent grouting of in for defined one regional in local only our and our as of over the note for alternative important risk only as recently of offering other the Northwest grouting grouting meantime, WIR two the Hanford support the of the option option value or approved to facility the -- tank Department waste documents. waste the strategy waste maximize treatment past out It's offers In untreated assessment higher our for Energy's versus closure the local in which or mission. is the only we've environmental disposal to to for progressed the quarters options

an Towards the We entered XXX value offering to in that Tri-City the environmental with accelerate the DOE we in liability labor region. stability the option through that the treatment our program. to when program a Pipefitters and Local support labor our level, the providing an the our it a tank end, a reduction believe of into the labor for can this operational for offering for of provide reaches Union grouting availability partnership increases grouting recently alliance while the

be XXXX with including produced big like this waste start-up Local facility will be appears the currently track plant, as over from vitrification on I be that waste degrees late Fahrenheit increased in week opportunity X,XXX annually receipts testing Perma-Fix to as for meters DFLAW on a DFLAW when by the all the achieved will late DOE cubic programs, a milestone estimated the the consider start-up at to worth last plan. hot heated major facility successfully noting for of begin XXX that facilities DFLAW the a is XXXX. projected of which be the waste We phase. the it upon our X,XXX to received Hanford to program It's said, and The its of

volume As would plants of production double the annual in an combined this I've waste mentioned past, the than of basis. the our more on all

see difficulties funding despite unspent. to that slower continue clients levels with in usual procurement and cycles than awarded getting we projects Overall, remain government

that at prior agencies, increase DOE optimism return levels see saw the to that to continue across the these However, workforces and we government will other activity COVID-XX. of procurements in we

for financials in a million improved the year. of loss to to of $X.X same period second of our moment; 'XX last a $X.X back EBITDA Turning an the compared million to quarter income for

year. the We a back $XXX,XXX we also quarter million a loss net to years 'XX the returned climbing from in last after quarter and over past to second of profitability of $X.X of in the second the pandemic compared income achieved net X of

invest At the and same continue time, we our facilities. to capabilities in

built highly solid growth for scalable a have foundation infrastructure. and a We

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

and continued optimize So probabilities to we optimistic procurements. base realize that teams both expand remain as strategic up, XXXX will for our market to growth we upcoming wrap in win develop segments

heavily to margins. increasing continue productivity maximize labor we to our reducing shortages, due and to While realize we're on impacts cost focused

strategy growth receipts power in we also a in of Europe see our includes and growth expansion both with well. groups commercial in services Our the will in as quarters. these believe few We waste next that generators

stability with over and of and to pandemic number few to we growth market we solid important sales ability encouraged be the experienced Overall, maintain quarters. confident awarded in we're contracts the to our next outlook, prior expected given by the remain a the our pipeline

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

Thank with start you, Mark. revenue. I'll

million to attributable the $XX.X XX.X%. of million, year's quarter our revenue $XX segments an million compared Treatment increase was was as continuing the our our and both of in work in $X.X revenue second volume The increase Our second was in segment million -- revenue last the all quarter was increased increased up and was driven waste facilities Service large for revenue The increase on by both -- or more total increase our operations related from $X.X Treatment the operating up by our or work as to Services processed contracts. was Segment project two project the primarily Segment X.X%.

year Year-to-date prior up $X.X at over through June segments. year again, XX, both revenues And or to our million compared XX.X%. 'XX increased prior revenue by

production did quarter, X for second they in have revenue. the full the to segment, in not been close months high 'XX. treatment begin increase production waste entire the with volumes the in the Service X quarter the As 'XX, full to at projects the contributed of while until large In

for at million million in $X.X gross the $X.X quarter, we compared 'XX. to profit had Looking

revenue $X.X revenue although there as the for As was result well as In of profit total our plants. gross lower a the with better drove profit to segments well Treatment mix improved revenue, contributed waste higher million. segment Segment, fixed work. the project an waste improvement from at offset both margins the gross higher higher improved costs as operating margin streams Service as the realized on as of of

waste improvement million segments the profit months was $X.X was million XX, mix. revenue partially by to from increase gross X as impact for compared prior $X.X ended year. the This our in fixed was million Segment the and $X higher costs margin both the Treatment the Again, offset lower June of

gross the the contributed to quarter, Service revenue similar projects higher and segment, realized the margin increased the In to on profit. improved

SG&A, XX.X% compared Turning $X.X XX.X% our representing to million million, revenue. $X.X the were of to quarter for of or revenue costs

lower higher to by due payroll-related Our SG&A and higher offset were and costs financing related expenses lower were audit expenses outside costs stock to related options fees service to they efforts. and

this to at higher of were to they Again, to slightly were main $X our the revenue months X reduction million related $X.X sits and offset G&A compared June million audit year. the For revenue financing. contributor or last ended or XX.X% of small fees outside XX, lower fees XX.X% by

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

ended 'XX. For income net sits at X a in $X.X $XX,XXX compared net months million last year loss XX, June to of

EBITDA from million in million stands and we $XXX,XXX 'XX. loss defined operations, per to last compared of compared compared earnings income of this of year last share basic a for X share. to The compared of quarter release, to loss loss $X.X year is losses year-to-date a continuing $X.XX EBITDA $X.X to in press prior as basic a at is morning's in at year share year-to-date the at share and $X.XX million per $X.X the was $X.XX per the per

cash million from which our sheet on to positive balance operations. million improved $X.X to our a the compared at sheet few year-end items; $X.X cash Turning was balance reflects

receivables respectively, result and increased timing collections and current approximately operations were and $X.X a and of the liabilities as Our million $X.X up payments. of million,

Our June up $X.X from end waste backlog in million ago 'XX. for a the of June which of is to close $X.X year-end $X.X million at million was and year the

is at quarter our end Bank. primarily which issuance $XXX,XXX PNC debt debt total was the which excludes Our due costs lender to

our cash And and million, continuing activity Cash used our $XXX,XXX, $X term payments the of flow operations in investing, operations capital proceeds leases summarize by in and which from provided some operations $X.X flow and continuing was finally, discontinued used liabilities cash $XXX,XXX, represents cash was monthly it's $XXX,XXX of loans I'll was on from $XXX,XXX. primarily year. was used finance, million capital and of $XXX,XXX payments-related option cash spending, exercises financing for

to credit to X maturity pleased additional our I'm this the extended an years other our facility XX, finally, of or that which, XX, among on loan then amended Monday, XXXX. week, And agreement report July things, date May for we

needs, provided million and As part support and term new the capital of this used $X.X a capital general loan facility of position company's for further lender will liquidity amendment, be our will working which maintenance.

for the of Perma-Fix extension many underscores lows. highs is this endured XX relationship which PNC and through with years strength now has banked and this over

the will operator I the that, With now turn questions. to call for over

[Operator The today Instructions] question Shields. from coming Howard Brous from first is Wellington

a very congratulations all, good what all on X of quarter. First to of you is

on. pleased rather want I So few I've as a that. that got I'm a shareholder, about questions to focus

last the opportunities call, First, in mentioned conference near-term you Slovenia, quarter close U.K. Mexico, to Canada, Croatia, on Germany. and

a them Have would if of those mentioned the lost talk That's looking total those could of about the some You size And there? of secondly, when And question. couple expect at before. see on we any you not, first the awards? we're to call just opportunities? what of you

We'll with They Howard. have they not Sure, any have No, awards. moved government, we they've quite -- the move slowly. lost with U.S. Croatia. start

at September proves phase that's right supporting if procurements an be be of the to R&D which quite is due have them But small going initially successful other with now, expand. treatment to likely million we're into one we're frame. move but one that $XX that to which will resins time X a We around for project Croatia technology an in awarded with the opportunity on

second I the think, is The just next round due, out week. of here came RFP and

we we innovative remain it. is an have and So for project offer still that play. that a very And -- in about optimistic

successful. would So if impact that we also QX were

back mentioned, -- they contract there should did from the discussions yet. be as they awarded and an I JRC as The announcement. soon obviously, client not said vacation, with been we have but And has get

decommissioning quarterly do with be so treatment on still of -- with in from Germany. basis. That's over or now. September. working a agency that now We We're right early been broker to continue XX support process the other to about supporting rapidly. QX there quarter ones again, hoping waste reactors to particularly commercial moving time that's, German to that a We're are quite for fourth waste brewing, firms Several forward the So some able time get frame. we've working

still have in Again, working move also Westinghouse several the plant. in that we that with new if will forward then agreement our we're on with And successful there. that we JRC, U.K., initiatives we're

it waste also out that we of do government from and other about ever more orders that We much that with continue we talked I to We'll won Springfield new sure with treat U.K. have -- if over we but treatment couple mean, get be to task to And competitive. with the I'm IDIQs there. not be a continues IDIQ treat we for the to a waste able over plant much, here in active. Westinghouse.

anticipate of there; in And other stages looking and in there over going which a are on couple for year, of these $XX that part of we next up particularly. things that next as over should awards be will year on to ramp million internationally stream there's to clicking, your last a but going million assume quarters revenue initiatives the the two. well momentum couple question, the we when the two in earlier lots $XX answer real to big for all So or are able these with impacts year a next

opportunity carrier. the them dismantling and Hanford on. course, to, been continue one, the that me the State. Can the I in hope nuclear And the discussion transferring Washington aircraft Enterprise discuss name. lot docked which reactors, of about there? of have I -- process plan right is the you There's they them of Let dismantling on magical a in of encapsulating

team fourth completion move EIS actually That carrier like sitting in it's slated next be believe the I believe, RFP for decommissioning. been naval us. Norfolk and I the the is to at the the on has and early And quarter, signed It's finished They not million And there. are Sure, waiting is gets. shipyard the completing for take Ingalls total for RFP. are look that last $XXX Howard. dictate The to into agreements October estimated, just risk going expecting how at advances a big I'm $X final That's go just that much aircraft million our how have -- fourth to Howard, be we signatures project it procurement. out to EIS. facility final is through what Huntington to these will to that the the of quarter, that one really billion to like. sure We're quarter in $X draft billion we the $X the final in for $XXX trigger we is billion to revenue. the draft close Virginia. Enterprise RFP ship timeframe.

a that come other is exciting included aside. kind out one total this that. have small anticipating RFP well. last aside. The revenue We're of set that small will expecting that several thing gives where XX% include business project you business that likely in be a for set sense And too a the we're we'll The of that like as have

quite That's opportunity. large a

about Over stand I started Because million Where the that Navajo the a with we settlement the we EPA contract Nation of you $XXX a and uranium consortium involved, last company Where was ago were quarters, that, Navajo involved. that? on believe a Perma-Fix do on we've was Nation. there do please? and stand to talked several years X.X with

with win a Prime, partners as probably contract for -- Navajo Abandoned mobilized other or us. Uranium I said, teaming with a the Howard, in well. Mine project did talked important that's about have the a is and you program EPA as the Nation into should local billion Nevajo a Mine I well through We a few because firm for couple We funded And really $X that large through Uranium we Arizona which of months to process total. is in finishing want site. that project program the are the remediation first a turn. Cove, cleaning very Abandoned that right up actual quick It's now. of into the over notes, say

executive there for last out president was weeks. been we've week few to and tour. with So vice our there I our folks out technical a

low we're they're but to system EPA and to anticipating, up soil-sorting project very about radioactivity out move with that right working. continue cleaning EPA will there the excited project met very, make is final will to beyond and expand our and very right in that though meeting we're levels working continue And the It's of not one. place expectations. technology operate how I now. of we have that next and with happen to in middle And Arizona nowhere into

very partners It So teaming is with the well. that month very well and portion project is about efficient. generates very $X or going a and million project and operated itself our

project quite as it So and to date more that EPA the on was continues and with supportive to come to pleased expand.

ITDC period first contract, over? the of BWXT award address existing. currently is appeal end? second There's part question. Atkins me has period after fair that is, comment, that high Let lost contract. the thoughts? is assuming gets there's the That's a the that's an does What a likelihood And the your it that appeal When it that are

a process. while it to on procurement make X any for to week -- process. DOE this understand. and third the there's to only probability judge an range. The appeal is we're speculate go to the not a basically would quiet forward again, that difficult only my period period now. in And we'll time said other time -- next -- and might their if would I -- -- it award of teams And But third new should -- the they team It in kind was exact the with appeal waiting period to direction options It's It's date, the move there's end or been can't award XX-day X that ruling, they're thing; we'll over. in really they -- procurement. us very, of Howard. as so to right go. recollection be there's be sure a an have take appeal like forward either of I'm I the decision through the period was say, move very with then

site over years and of the urgency online changing. at program tank the the some law is with next what's happening associated the really There coming couple with

optimistic and do understanding is we'll about DOE but to we'd So timeframe. in Hopefully, no be it point. what we really the have no September this something really of at like intel learn going to

Let probably the most to me get the important last, question.

plant in QX the X,XXX worked starting that Is So that a of plant from for smelters comment hearing of and end to based the the up on you're XXXX. leads the vitrification then that people? to correct degrees Hanford likelihood what

Generally, smelter piece yes, Howard. they're understand two quite of melter melters, first The the has -- -- and equipment. complex I

did as with The very planned that they're systems they're the they're first making the away track forward continues they one operate and from releases obviously what But to are is other we've well. read good second testing with in moving 'XX, half facility. their which large other associated of that and a the a progress. things over that press year as of the DOE milestones going click basically for report on complicated

along accomplishment big that big an schedule and DOE. Bechtel was operational and a coming the other there's Getting increasing contractors So optimism facility online. a about melter deal about with by the their

new hot we're testing really agreement hope fans to expect or them our big real now, ROD. obviously, 'XX. So support And that's be the Vit and be right end able to we would with provide reflected the waste with in through Plant at of to of arrangement that

earnings? basis again still just can at one that on Based on full that confirm for looking could $X area? operational, be we you in in Roughly XXXX, that a this

of it address a it It a this But a like can't of would we There's waste up this point. a take those variables numbers tune ramp each running we expect to which get earnings lot a But year and point. and would the get point period to estimate. I XX-month expect to where assume type quantities an reasonable that much their at estimate the that seems quite that anticipate meters this for calculation. But two type depends do of level. definitely on could at which a likely how reasonable Howard. of receive, in both I to kind the and invest really year full it I that is full limited overall, to thing. or be we a capacity, I to would capital X,XXX of this have seems melters in estimate that like understanding blast cubic we mix of

Great congratulations, quarter. And Ben, Mark, Lou.

Thank you.

coming [Operator from Russo question Instructions] The is next Brian Sidoti. from

Just temperature major that any make maintain the the facility. that of second monitoring of DFLAW testing, to should to to there milestones for follow Outside be the the we second up on XXXX are start? DOE melter half and other at

Brian. like a lot have the sort systems, that any in of as this next facility a There's like other number, will milestones front reviews, get to But of readiness with that there's me. I safety this, summer. don't of occur they closer

get in along track of to way. least their near regulators And likely would as these DOE several I those to their So -- the types this and agreements in we place checklists other expect regards website, that they'll what them they on then I milestones be on are we've can some and the melter the should readiness successful. at most tested would and They I through can here and with going are report you. in that start to are milestones operational term the and and and there those of things

are they DOE, them at if So pull to available just website. the I up have the

Great. be And the involved is granted comment can gallons public State for shipped? -- how just period to we're remind that permit the there that after the in gallons. DOE a Is me that X,XXX Ecology And Washington X,XXX the in? is soon permit when the on currently

for is with I ability past Tuesday. questions gives RD&D permit to DOE, want -- extract the permit the Yeah, They or to for came it DOE approval the out -- the say this tanks. waste from

this In said And towards and the extracted waste extracted comment they'll that questions stuff. ago. it with is provide days for the what to when going and approval. and X kind after So that technical equipment move these go of in do out had response how that regards public questions, is they're they DOE going to to to be some questions

days -- XX DOE has to once 'XX question, quarter. which period. that anything, approval yet. once and it. a be speculate that finish to to now they comment public this long extracted, is demonstration, DOE And the treat happened operational has towards got from because and is And would them seen we've waste that So address sometime Once else. then that DOE to it then, start be won't will I before respond it's completed, in likely fourth DOE an be to position could would move in phase in early be take got will month everything would probably not hoping it we're they it a extracting

we're the we're a with a again, you is real there's operational phases where going phase. really is not the road really that's we have forward to map It's date begin focused on So approach small. with or pretty a we're Obviously, includes program. will they that. demonstration grounding And phase progress X,XXX to a and tell gallons on make It's treat looking really volumes closure. DOE operational large to operational and what associated the specific not tank that --

So, that late again, sometime expecting we're in 'XX.

operational the Richland be facility phase a million which Okay, X gallons? to could great. mod need And will do a the

not from current XX,XXX million with capital facilities. And that go minor And go XXX,XXX have be permit that gallon make got if that that. or not yeah, do I to to with But mod. to to significant a We we getting to there get current gallons quantities. would our minor gallon to and a as in delay and expect a well. a set we'd jump would think up place again, a We're those to problem month XXX,XXX in -- improvements doing gallon

think And but backlog? your You mark-to-market mentioned the great. million on was treatment backlog Okay, services $XX I what's the on last -- call. then, services

in the wondering awards new where million the $X with stands that Just of release. press

is number. there have current that of Some I -- not in don't a

Our quarter end and X number the X. was $XX.X included that about million of

probably $XX million million, award. of So about $XX new

kind near considered treatment was then, improvements $XXX of be in couple segment. of The close what Okay, points rate margins? on XX.X%. of a great. the the just that million services to you on And of at Is that year-over-year. revenue Are annual normalized? higher Obviously, basis is normalized, margins hundred significant or each normalized the based to and which would the run XX.X% maybe

Yes.

is I our a lower margin reason. that lower new our little new be sort we're at plants. think core is receiving for on the plant X revenue than going a Services Treatment end is the of -- bit The probably to

probably in work the that the sweet our brought get bit. the at expected little would but treatment. of bit new waste, mixed higher a down a I number like regular spot waste -- facility we When So $XXX million into would less a year, is the we have a I little that little do mix

with So I and better could a good it's go a we it little think at other see up number our plants. performance

And for of then are is just of the it Treatment? -- kind $XXX XX-XX on that looking you lastly, million, mix maybe Services,

facility XX-XX Maybe of it the kind of because does. XX-XX. general, that's depending even the Yes, how new on

next coming Investment is Partners. Taylor The question from ARS Ross from

contracts? nature of couple of the a DFLAW things. in other opportunity by Just situation impacted the way the really One, quick is unsettled no

The tri-party Ross. agreement regulator DOE, question, a good EPA. between a DFLAW and operation to the is That's tied

is completely procurement. it different or tied is not to that So

a up of there's for to an the point. is I going want DOE where August there's say believe, and COVID. potential because that slips to say, penalties So I running. be fines of to and couple milestone want XX, to that I after of has say obligation

that. slipped of 'XX milestone basis. Congress because to anywhere So DOE and Again, it from DOE and reports that important regular regulators the of try close December COVID very to a on a not to is to on get

to it's tied a it's So -- procurement all. not not at

Okay.

getting -- for And up once why And operating. through. They've and decades. this been that's you're the confident is so about going working on up this and operating, they're that they're to melters push all this and that

around where that that's income you're so $X flow, it's or whether whatever that, confident basis. a run $X, That's from. where that comes And on rate

Is some my correct? Second, feel of you noticed read I Italy Italy get if would the made more contract. Europe. to you in than that got used you words be contract not me the surprised and choice of the

I quite that anything optimistic, The crazy been speculate on they works to Europe some to down-select. Ross, is We've with optimistic hate procurement, is things for reason Ross, do the we're can in it happen. time. because way

been maybe X or So it X years started to on with X out for this and XX X. gets procurement going bidders, down it and has

with go you were in up feel that goes or hear And and team. we're September. really good I remain optimistic position we as we but optimistic early that can't we're So a our before than your down good that we like position, optimism we a we've say in won should more just that

a you to would we hearing appear of to Okay. that. Europe, a have of look opportunities forward it things there, come lot about lot Well, on. Talking

lack that in a Germany from phrase, win your for in it business you're have going out be to better relationship, facility any going Europe, to you're treat. Croatia, or to the get you build you Italian the the U.K. elsewhere? of interim, the If job, In treat U.S., you

out-of-country what incinerator very doing in kind our over which exactly. And been units Exactly, we've we've for well commit residual we now waste suited shipping the have Northwest host to this treatment Europe the to Northwest a That's call are back the that. just designed is we because been do to are country. units, giving from of to facility And all work. little with to to it's different BPUs, you our have of incinerator

that to -- for ship over a and the storage it the them. residual can stabilization get out reduction they XX% overall we significant of take it and value So well of package And value high-quality there. size as back as long-term very about

in and we've that's And if well. what out same the costs as transportation higher we works the U.K. had obviously planned. it facility it's So cut

treating on with How boost a be? margins you're to big if able margins happens this would business in treating U.K.? in the U.S. the that what So move to from it

that Margin we JV percentage with sharing we're lower and with will put be the together likely those Westinghouse Westinghouse. because

what down. know this I that's amounts -- inventory difficult So the dramatic and to good waste with anticipate waste less. just not much in to we to would every there's most be and really to of be that going be. it's nuclear It's at the it in would part. here go as to where facility Europe, U.K. the say over margins It's inventory in difficult the for there over -- And but it's as what should used we're

the margins over I So to there. treatment XX% on waste anticipate would XX%

uranium big that run? actually about in the number they? How starting, are continue sizing in many uranium of the we Mexico they talk they're will Navajo mine, all New you the like to mines, those? -- the How are and Well, projects. in now think opportunities How long the do how long

remediation. is $X numbers, mines for or least our funding contract close XXX teaming identified have of unofficial us, slated million has $XXX closer are and partners But IDIQ. $X a billion to funded XXX with this. what At billion Ross. Some abandoned in told of There's from country EPA the the we those for probably for uranium that

are excuse So on want million X consortiums or other that there's bidders, other orders. $XXX other X I value, X which companies the can say, for There's on there work -- left And that's me, just X revenue bid And get you about, is to of task of to near-term the everybody. is contingencies Their go intention it. the talking of gives around that field. a years about to rolling X the those enough kind sense companies. we're between in

mines very difficult, dry difficult remote, difficult deal the They're sure and keep because field very work, and in and hot, these with up painful it they'll I'm stay going them; split everywhere. people obviously, make to are they'll conditions. very sure

there moving you keep out, So want to and you team with your and don't you're once out in people, keep want to going.

whole get going. and accelerate hope that there. wise, can visibility so keep more And see we orders our funding that's and in So task this out program we procurement

idea, same Virginia. with currently a are up you guys in finishing And the job Navy

the be door not What recall thinking the obviously same on obviously this Enterprise, I got think see decommissioned Enterprise setup be has other soon, right with that. that we that the to of but if Navy that you has out than next warships in all has? these kind would more queue let you the wanted just number of the Enterprise I opportunities it actually And Is the Navy other upcoming year? the that? correctly. to Enterprise, also a should we need And just to

decommissioning. now, building another the due at the ship next Shipyard bidding Norfolk I that on right Naval week we're There's we're it's that right next to think

years. are Navy, ours. where there's other projects which But So they're they And ones, companies market want it ships decommissioned coming to year answer the that a next commercially. some XX all in like a used be 'XX self-perform other say, your now GAO to the to really for by work, that to reflect up era question, opens this that with X out be the Enterprise. the just outsourcing the the anticipated in to Nimitz new behind is I Navy put out, And report X there's the said

of years a believe kind they Of COVID. think because I couple of a dozen I those nuclear ships, XX lost ones. there's about of

the So we about they to have out Nimitz Enterprise below or goes. a after awarded. I the seen The come And difficulty gets the aircraft the names list. And the expect far Nimitz haven't the as size carrier as Enterprise right an is other also Nimitz. and same

like not a you're a power a goes about to what you're of this, day closer a question looks -- get Okay. clock can or of question year great. that talking a front. opportunity next being on really just much the It here. It's day calendar just in unlocked. We're me tremendous Congratulations. to be by talking done enough Well, sitting there's or to really really about the patient we is earnings or every it's It's so so.

that procurements ever. a missions way That's funding not than a we out are defined. a They but least with Everything at to of to just significant process and game. exactly a very of I've the funded And moving right, out. into everything as and has out thrown there's been lot waiting procurement. It's funded well or all XXX the goodness there Ross. anticipate continue world funding more keep unspent there, the for big significant is wrench, mentioned COVID times got waiting procurement

and at has doing it the great I on job your corner and Well, like company it really congratulate seems a turned and team you're you that. Okay.

Great. Thanks, Ross. Appreciate support. your

question next from Investors. Aaron from is Warwick Breakout The coming

something relates among to up congratulations Ross reiterate. to at under you looks point, I ITDC, community. there's to to of want secondary I the the follow guys. But and and with because take an they're some said of waste it and to that getting just investor on I the talked bright. like accurate? confusion, DOE's it on what as also vitrification to about, Is up therefore, to been clear you running wanted make just want sounds lot think, obligation decision you It future a happens the back I the regardless what certainly get plan on that

right it a they add more needs through the winner hot. have like as hot has the that's time or That's a now that. be DOE contractor something one support then or approach job The Bechtel the And and that. time turnover assume or turn that to continue tweak is that to -- something to frame Absolutely. they a over to and current change ITDC testing it statement. could get like board to true that But to contract that would up would a plant that Bechtel on mid-'XX it separate once

on even August I at But for latest. absolute XXXX they'll time third That's was line so they bidding without Right. get do, too thinking that what seems that the -- process. they're a if likely result this it

Yes.

good. with meeting. public attended Sticking Hanford, I a Okay,

project think in the was the impression gotten government I Hanford there. surprising I June, because all of that... had it's with had early quite maybe the late entities entities May, it always And the involved, involved

think we you. lost Aaron, I

going part see this of their you guys I'd sort Like seen be positively? Have of you that change solution. to that and was well as assume

Aaron. repeat We your chunk the -- you of lost -- could couple of sorry, sentences I'm last Could there. big you a that? question

yes. Oh,

Sorry that. about Yes.

them seen from seemed they're to -- be Have change conference, extremely Ecology that So that their I assume meeting, positively? of this positive received you the Department have position in on reluctant. have this where public and at opinion changed to

how Washington have to regards in we've evolved You some the I'm good state what Ecology. detention but the I afraid, Yes. with broke asking has is some really but the of around. years and meetings past Yes, up routing. They again. come CVI Aaron had Ecology. in you're had They think

are start cleanup how looking budgets my think when and reality frame as million just is address of -- I associated regardless that time going $XXX the on speculation at to in with. we has budget Hanford, defined be some requirement that's to done now and million numbers long it's different the reports that part in the that something this the take is and and frames to time $XXX between

approach And the it be -- with of for that. I the think seem and still The that their Ecology grouting them is think mix. come has it had solution. embraced is has they've preferred to vitrification that does making treatment as part very around we've I they're making like meetings that progress that And have embracing supportive in been in

fact Well, on-site specifically with out seem the I'm but that necessary be as to that the that But mention to taking out process, disposal of the that argue did it the vitrification they I would with pleased certainly that. waste is TBI not being would preferred state. to they be going point relates for vitrification their

another wonder to I'm they So seem going much I TBI seems it And obviously, has come It's, on nothing But perhaps but more that all. with union. that like favor you that now. sort be I of say totally that this to they than do the -- of I to not okay think how party vitrification labor with with board. that mean, at have partnership now

with are that TBI. now entities mean, be seems sense well? your Is government So to it every I that on as board

has a to DOE a including lot. way a Absolutely, accepting had Aaron. The well. DOE, Across to meeting time tough state you It's NAS helped board, went as it. the good

There's very question DOE House requesting for DOE supplement addressed been They've as they're that to and started as congressional a grouting to congressional been that to language how be it to recent planning as think in both use language I well. delegations supportive. to the accountable have vitrification in draft, congressional and Senate. the a

in budget is part grouting press the discussions an kind on near everyone There's be releases planning has been assumption term. DOE So, well overall, in it more. I as to for the included there as that recently of of been think

But vitrification plant going near like So be looks think of operational it. a and term. I frankly progressing think be helps it to it's in to the that it that the overall, everyone hold forward has also grabbed I able is

that the is So to road map important DOE grouting refers part that. together of coming whole as is an and

besides they seemed companies know were that treat that and meeting opposed for go to territories it to are at recently I out their I any even And and Yes. it were and the as way any DOE, it. waste refer to -- the Oregon mentioned to we as final it was, here it that Hanford out that for out there in territory. Is But listed whatever of that untreated think the Nations to Tribal were could the document? relates came thing and grouting, get them to any of be that not those of going waste through shipping through others they Hanford there heavily seem X

have options all Texas, Yes, waste and their at documents it's defined exactly in Utah These and both different right. X Energy respectively. WCS this and facilities Solutions could treat

it point But always there's answer access time, out, so to this on they have question, option. in at And site. your been truck there's to rail no an would

and we're a and approach or providing to have in least have risk. lot approach transportation, rail it of less disposal that local this both a So stabilized is defined risk the to shipments approach. with it a shipments providing highways a truck as and on lot locally then we're of being to EA versus alternative lot that solidified, which less for a grout the lot the we're the And waste approach, the you

strategy remains Now, defined other options it reduced but overall of risk doing at well consider final locally that in would DOE risk the they it I'd the that that the could not or of seen doing shipments would be to will and EA those less transportation treating to government. best it as to believe the the believe as these have are that to facility things have associated our value and with their whether be with the in as are I the number all locally, consider. the

on. what's be to relates of for just Italy, get part one any a able to the me and Are just trying the about track better idea JRC then. going that would contract? of to that talk of as some it It's of final reactors that Okay, you

currently The JRC specific is quantity Ispra, that a JRC waste facility in at are job of Italy. of buried just very the drums

So job site. JRC it's only very of located the waste And specific just is a waste that form. X,XXX the at drums for

it in X,XXX value open the So $XX than million It's now But drums. be the that's we ended. the more could base range. scope which just

for So, other where They facilities there it there's no that's other to right scope. through waste going Italy. or the of base reactors or anything that's But could out currently now, to other flow through that's opportunities ship defined open necessarily there. flow up

much So that's it. pretty

from The is Alan next coming investor. [ph]. is Denzer private a question Alan

Congratulations.

you, Thank Alan.

You a profitable done, there's ahead. did progression it. And hopefully,

doing this to prepare possibility next that possibility you ask a its you a Let How affect would regarding possibility? me that of seems for more of the just foreseeable shutdown government And the be about to are future which probability a company? what at point.

budget. haven't significant shipments is work shutdowns that typically comes Government had do essential and a to through could It most but us. on DOE waste some the slow we -- impact the as of down that referred

during on the CR maintaining their with a the chisel as be there given about CR XX% has kind little would you for to know some of So The because, that threat allocate to projects. it thing. a budget and bit CRs, restrictions -- are safety new of of for any government

and it. to are on a the to Government funded opposed impact things. haven't -- of waste as those they're that procurement you to kinds So past. had store a us CR on there's streams in it impact of has component need safety shutdowns coming, with an to more our big moving keep need Typically, it and

to projects my existing but real delayed may me your should new be sustainable the get is for in answer may only threat get the ones And most question to view or procurements part. delayed some get that and might

right. on All doing. what doing Keep you're

from And from coming LLC. Fein Sofein Stephen the next is question

your on guys quarter. Congratulations

labor union support Hanford? You expect mentioned any with agreement union. the to the in provide in new Do efforts your political you labor the

obvious They a large union a very like that. has political the have enormous a connected. they're connection an beautiful constituents Washington in XXX with very facility There's Central training area. group politically of got capacity and with

we this entered entered certain agreement So area. and I access amount a the focus. because ability is would of as We agreement that to figures our managers different into really these with labor we they into certainly need not -- sincerely We there in the have large have the safe and their that us give and waste running of would training got facility the workers they've DOE to believe provision flow with stability with ebb tradition contracts. the for

there stability and make meet going the up we town making got as need that advantages coming associated a that, we may be that objective as to need to administration, some able the political provide work also we're have. really while small with as particularly So obligations to some the town, we've of we've grouting our DFLAW people was be the to this be the starts in to people of going got well to that's sure to that sure the XXX,XXX

all Okay, right.

in my mention you experiencing was your presentation shortages. that next So you're did that because question labor initially

with in would that connected that Hanford, correct I am being shortage labor union? any problem help the that So out

all Absolutely, And we right. having exactly are -- we're that's struggling.

lot compete to. I commercial, And people. are. compensation competitive people many think just there's hired benefits don't regards people. that different taken we Gold not is a us because in and their package They more of environment. a we lot Hanford they're to so with of and to have it's better than We're from people Town have is a because

working projects the numbers couple us of having talking with people. We obligations. levels at have us And, and X been we're can hundred the work, these But with gives confidence people numbers -- the able the DFLAW we're that a we're TBI boy, -- the about talking we meet these talking of to the replace type XXX max. for of

internationally, this is you -- how with are are -- is labor shortage you consistent dealing if nationally dealing How if and that?

at quite at other plants few we had issues had but We've extent not the X Hanford. a the to

people. regards We like that. to And everyone folks, in we've the the charge. fully Hanford. with of because versus But a availability XX% Hanford have to biggest labor little or will a with having even the in able original margins because labor. at maybe in our folks. rates to We find and have at or Gainesville issues been facility away staffed and rates of up in the been to we some tuned had catch lesser have we because else been ones And increased able has facility openings we've degree had almost the and far to impact But We're each just to bit salaries, less. at it X% the level Oak The of the our ones we've country is Hanford what find site. Ridge,

we've had it we've has fortunately impact and been an able deal But able being So it. it. to to been with manage

climate by change? Has your productivity been impacted

Our not impacted climate at can been has by all think change I productivity that of.

not really been the aware Our by but productivity by heat we that has of. impacted only discussed the I'm labor issues just

Okay.

you that plant? take in with would Westinghouse, Britain plant to were build would expect Great build long that to how If you a

Right very with with hear Westinghouse are because now, design right we're where on we permitting to working estimating a -- waiting But now award. we're been on progression we've slow about at this about and to from looking answer months your but XX some design, the award XX current we're months the XX between. in to at date best months question. schedule probably But place is

Hanford just to would Or have or come the permitted to plant, the vitrification was secondary you? be opening to the whatever? and would regard With of you

permitted are can accept now. We now. it it We for

We have of IDIQ for of use department this sites. kind waste type most we a for DOE contract that an with the of the through

a or to ship enter would then it. waste, have with they'll respond they'll likely or waste generating the they order task rates RFP, into we'll when most And are and provided. it order -- task they So us, near generate been

So the that's way works. typically it

regard period X,XXX-gallon a the been And should comment it's would public happen. With if of legislated? what read, Why money a public test, this time to mention period. said basically, there there was basically a be comment I've has

that's the the has RD&D for comment consider. that And extraction to public for is permit the state of waste. period The

I'm or what address there's your to DOE And or but driven that's driven I to a an by by sure question not it's it's extract sure not, So it's -- RD&D for if if believe not I waste. permit I'm get required record permission the Stephen?

-- on. you part. first a be Yes. I guess the guess the it would cetera I'm me and I there would should with discussion it's confused issue because has And there, that by? with legislated more did the be all now going here I direct a Why is mean, this et just the gone should a it is be time money been seem to money occurrence. this more

for that. of exactly the process. Yes. the regulatory sure It's drivers what not are part I'm

be therefore, And that with or in waste last it from to come boats. the for that question small containers, spirit not that does January, the And to right. the ROD -- -- would or in ROD would or them. small things. All stated one secondary clearly -- that clearly ROD regard One, it the infers stated -- all And infer further, transport that you distances. DOE states want in waste Hanford. there But addition, provide were they was drums that waste to only mean, X the back of long is would other I

be or I quantities. confused. that suppliers a be maybe make discussions would somewhat can where there to the in with small conversation how any not I'm have guess know wherein distances I'm sense other shipped longer confusing don't I So, material

reason you as get said, their off as it, in little because think addressed you disposed for Hanford. The the you Perma-Fix. waste ROD, cell said, as plant that it and DFLAW confused. August, treatment Hanford a I was is at at disposal just in for at large locally And on-site at

for were out in the was disposal What any not state their or ship it to anything facility. So then would it ROD regards at bring to to referring to for grouting. we assessment make and is of alternatives back for sense TBI referring environmental

of the the it because getting leave for increase alternatives. Again, where you risk it's alternatives state that's grouting, the off disposed for So when with grouting come not the part in. had state, in but

clear. how these them and be want Anyway, But again, get put hits as no All want hey, to if in travel containers, small other not I long a in we was and they to that a underscore a and waste shipping yes, to wherein And former small absolutely that, ROD I that... I distances expensive out containers they me right. manufacturer would would long we guess the very manufacturers to I only represent distance, ship imagine what make not sense. chemical guess

go us It's to locally. anticipated besides regionally waste anywhere that the DFLAW will or

-- yes. Well, I'm talking

All right. congratulations Okay. And a quarter. great again, on

remarks. other no management the the were turn will closing I to now at call team for There back questions this time.

our everyone conference I'd thank call. for Thank second like Okay. you. participating quarter to in

the remain and the we We continued said, look extremely business. unfold. Thank appreciate providing developments I updates shareholders the we of confident As our for forward further in support you. as to outlook

conclude This Thank today's you. conference. does

You may participation. time. you disconnect your lines your at for this Thank