Babcock & Wilcox Enterprises (BW)

Megan Wilson Vice President, Investor Relations
Kenny Young Chairman and Chief Executive Officer
Lou Salamone Chief Financial Officer
Rob Brown Lake Street Capital
Zane Karimi D.A. Davidson
Alex Rygiel B. Riley
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good day and thank you for standing by. Welcome to the Babcock & Wilcox Q1 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Megan Wilson, Vice President of Investor Relations. Please go ahead.

Megan Wilson

Thank you, Cindy and good morning everyone. Wilcox quarter & call. earnings Babcock to Enterprises’ XXXX first conference Welcome am of President Wilson, Relations I Vice Investor Megan at B&W.

morning and Financial Joining Chief first this are B&W’s Young, me Chairman quarter Executive results. Officer to Lou Officer, Chief Salamone, discuss our Kenny and

to release our certain on in Form provide in subject our on the that provision forward-looking and related this XX-Q Safe statements call, press business. be can These those statements at of we report Harbor earnings statements During our our to and and filed and uncertainties, risks XX-K the be Form quarterly further will including about make SEC this file forward-looking. are the morning risks our detail is forth end that with found set for

law, except undertake required Additionally, to statements. forward-looking update no by we as any obligation

certain or information in overview can found Form GAAP. accordance historical turn We filed A to first superior be our of and should this release babcock.com. Relations call that, website regarding the X-K to Investor to on section provide presentation posted historical our on information over the for reconciliation in This of our also in at provided of the measures quarter with morning GAAP non-GAAP and will comparable published With our company earnings I Kenny. supplement as substitute our measures. a considered results be non-GAAP results not

Kenny Young

everyone and Good for Thank morning, you, our Megan. thanks joining call.

effects segments sales with and including the additional bookings the We our projects, we despite year, of which new launching first and debt positive ended lead quarter our continued the first presence across over efforts, our demands and cost time quarter reducing our With included of we commitment services. dedication leverage internationally, our this and and employees, work overhead and positioned significantly of results momentum the turnaround structure backlog. smaller of of cost importantly, the and strength $XXX first each strategies. and ended of EBITDA really segments, initiatives, this keep last $XXX saving focus strategic growth on growth cost service initiatives million adjusted implementing drive, ongoing team continued XXXX include $XXX management strong not preserving in by new for generally XXXX All backlog reductions Our well COVID in the reflect generated have million first that the quarter segments. million expanding in and this with our the Notably, our reduction flexibility. mind XXXX. And while secured the continue quarter does in booked company to in speaking, global parts shorter successfully we adverse

target million reiterating visit fleet. of we our have adjusted on in As based XXXX are of million stated, $XX to we EBITDA previously $XX our current

cold impact Our us and in account of weather position quarter reduced quarter ahead that internal is and EBITDA puts of adjusted performance. million, our our the still of which performance EBITDA to seasonal the objectives outages first consolidated achieve plan maintenance first into with takes $X.X customers’ a generally impacts strong

Our QX to QX increasing normal typically year. profitability performance cyclical each shows from

foundation over improved have years actions, last performance provided growth solid strategic the X strategy. Our and a our for

larger and both seeing or or and in transformative attractive opportunities. emerging opportunities acquisition products for add-ons services, including investments small are We technology targets mature

value. that generate opportunities synergies flow, improve generate or margins strength are drives strong expand team and focused our leverage our that of on clean energy the which complements portfolio, or management proven technology We of all to cash shareholder

markets, technology reporting our directly Thermal, year, Environmental our segments: under pursuits. reflect and market-facing and segments which last aligned new announced B&W we B&W three As core B&W financial we have and Renewable, strategic

the capture energy anticipated include the requirements has infrastructure of significant B&W forward clean needs carbon will which global in in for application we technology. steps For and several believe energy, change years,

for a than been technologies. leader patents more have capture decades research in We carbon decarbonization and and development active XX for hold

currently waste solutions ready environmental use work including commercialization and either decarbonize steel, for proven paper in they Our or food and industries, to range footprint. facilities gas, support treatment in cement, pulp other oil demonstration manufacturing, decarbonization as are to of a and their utilities,

for by absorption use hydrogen. dioxide carbon This major simultaneously jointly stream emissions technology, the technology, producing solvent a by university dioxide oxy scale and years largest carbon developed was B&W decarbonization coal-fired chemical of a economically as streams developing of gas which worldwide large-scale which successfully a an boiler capture and utilization research; is demonstrated basis a position combustion on application, which variety storage solvent also of terms regenerable from of small commercialization; for our concentrated scale, in for thermal at of RSAT, been backed to a XX hydrogen-fired as known in fuels, has This and combustion our for was years XX versatile and and cutting-edge operation exceptionally wide successfully utilization our fully a oxide or and a in feedstocks is puts new for storage. looping us capture breakthrough technology carbon is which demonstrated with U.S. scalable regenerable technology, ready has storage, completed successful hydrogen flu are offering, demonstrations We ready utilization This of package hydrogen-fired dioxide cost one technologies of suite includes: is installations, for isolate or our while oxy and global as large well production for to isolates technology platform post-combustion advanced carbon been and abundance, megawatt and several the a to in our technology, or suite leading-edge services. can for boiler large which brand technology conversions; demonstration.

related growth experienced leaders, strategy, forming geopolitical and advisory are our drivers opportunities the of with wealth serve, B&W hydrogen inorganic we identify – environmental affecting up markets develop new to and global opportunities environmental developed them. being the United regulatory will to of new carbon the targets B&W environmental to knowledge the this worldwide waste-to-energy technologies. market To United assess growth including and to States and green continue further of and our renewable and production, The see In regarding a and technologies, for addition technologies, technologies suite we policy accelerate work made and an with team trends, advisory council a industrial to we board for organic green emerging a of drive leadership strategies potential industries innovative within technologies, capture and with to transformation future. to internationally acquisition

potential In achieve are leveraging addition services immediate margins acquisition opportunities strength and higher also emerging our within synergies technology to within opportunities thermal with of experienced team. markets, the the sector the we management to seeing

events, value. quarter strategies will of the now turn offering arise X, deleveraging that May closed including drive to us growth and have first raising shareholder to financial Lou? Lou of types our XXXX. on in recent over support these the capital preferred well positioned as to XXXX the key leverage our performance opportunities call our of I and they points to stock Our of discuss some

Lou Salamone

Thanks, Kenny.

projects of quarter compared first to travel first consolidated improvement our construction adversely million, in Our primarily by which quarter ability is a were the revenues due XXXX. workforce Revenues impacted XXXX as and COVID-XX still activity segments XX% at This of all customers were higher restrictions, the in to $XXX.X limited to job company’s quarter. be sites. delayed the that’s level a of

positive improved savings of compared restructuring was construction $XX.X million quarter well of the XXXX cost project quarter of first quarter GAAP advisory other a to loss of improvement operating Adjusted in million, operating EBITDA settlement an million. and of further and $X.X is primarily to and in fees of The the loss million the improved to of $X.X XXXX. inclusive the restructuring first of G&A in initiatives. was first is execution reductions and overhead of loss Our This higher due positive XXXX. an and operating benefits million as as $X.X costs $X to our compared which impacts volume,

to balance repayment the a result of our use fully. of full and and million, proceeds offerings, of primarily $XX was equity flow our the of first liquidity, operations quarter using sheet the Turning of which discuss I the cash debt as in cash more revolver flow, XXXX from a will

gross XX, on successfully million proceeds shares $X.XX share the $XXX disclosed of stock notes previously offering. sold we per February price common senior included for closed offering approximately million. of As at stock a and of public XX.X The common

We also of X.XXX%, rate million $XXX is closed XXXX. of offering at in an the which interest due notes senior

private reduced for the offering. prior two last XX was Financial to remaining loan $XXX discounts X.XXX% term In addition exchanged rate XX last million senior balance in million and million a interest notes the before concurrent term B. offerings, of on proceeds of offerings out rate resulted Riley of to expenses. but out million loan approximately net and the as $XX underwriting public The compared its after of deducting commissions, existing The to is XX%. its

the February As revolving we facility, used zero. a our repay balance outstanding XX, of from proceeds previously outstanding the toward reducing the to XXXX, mentioned on credit million $XXX.X portion offerings borrowing to

of million to XXXX, $XX.X to other an up XX, B. March also in XXXX, to an Additionally, X.XXX% agreement first debt notes Securities. B. among the we March out through amount On ended $XXX senior and On our due and and of loan. quarter of deferred cash with last gross letter million. term revolving Riley million the cash entered principal we Riley $XX credit $XXX zero $XXX.X XXXX sell paid aggregate amended borrowing with the of on Inc. which we may and XXXX, and our accrued X, of reduce fees at-the-market million of A equivalents sales we XXXX to total availability availability or million tranche X, credit unrestricted existing to, Securities, March towards $XX.X agreement into things of We bank million.

rates of of cash was the As the before by connection offering. driven May XXXX. common is underwriters option Net in to X, with XX-day we offering proceeds unrestricted Taking leverage expenses. the commissions, stock previously net cost-cutting senior the creates effect quarter, public our shares inorganic underwriting commissions with May $XX February an registered stock in March foundation notes our interest discounts purchase XXX,XXX Series offering cash reduces of the $XX.X term notes of XXXX, preferred the respectively, out X.Xx X prior and ATM additional be perpetual to The arrangement. price improvement a Combined as May into year. May and which as the net the EBITDA net deducting year on a preferred of X.XX% primarily debt, $XXX.X the after issued per forma proceeds but million X.Xx underwritten quarter compared fees million stock secured deferred The in marked with last $XX.X a X, also debt of would our million we XXXX on of XXXX, A December out on on closed $XX.X and initiatives, an pro this total compared reduction of the for public and gross total after net an offering XX senior of to basis. on the the a have during up at the shares and to the proceeds our account from adjusted leverage this $XX.X XX, of pro both approximately rate of million and loans as this million million reduction net net at ATM offering cumulative our resulted Also of the million offering closed organic through and to $XXX.X received stock and XX, LTM proceeds in solid expense XX, strong disclosed, share. of This in decrease growth. forma

due a levels Looking forward, as result offering. full debt further the to the and our of to expense of interest we benefit be quarter reduced expect February rates the reduced of

are qualified domestic American based Rescue a In the previous total The to our this the the but contributions approximately the our the these U.S. minimum previously paid required of numbers It’s of contributions the effects paid which a Plan the expenditures XXXX investments, result million period million, through to minimum disclosed, with as $X.X as in of passage remainder from objectives. expected current strategic which is pension has of for our that mark plan note for the the performance of focus of with period performance required first XXXX key quarter change reduced significant reduction plan have $X compared and Act, this pension, million XXXX addition, performance $XXX required to pension of been a important cash funding on of by to of subject been to to million the of funding minimum XXXX. the improved pension related in in was be $XXX contribution for XXXX. expectations

XX% years. XX% cost few Turning expect cost first our identified strength additional implement the addition management disclosed, initiatives, to to million $XXX to $X XXXX margins, of in cost our our savings we initiatives quarter of cost reflect to reach the remainder implemented we the and during in improving EBITDA have of of actions We a targeting of of total to we of savings next savings previously million. $X.X initiatives XXXX. commitment the savings million that over for million which further our to team $XXX an incremental are also the These

target $X.X This significantly XXXX, cost adjusted continue for combined our the assumptions COVID-XX based achieved our of quarter $XX bookings to on half generated all of results our reductions. effect in to first EBITDA impacts the of million improved second is segments of range on million the XXXX with about despite the with adjusted and business current consolidated We We of EBITDA million adjusted in adverse our quarter. $XX bolstered of by the segments. these in of is positive COVID-XX XXXX. of the Each EBITDA

is by the level as higher the the We projects activity in first previously XXXX. resuming to deferred see of quarter of construction some evidenced are of beginning

impacts Kenny our is reduced and cyclical QX cold This from normal typically of increased in customers’ quarter. As profitability noted, performance first seasonal weather each outages maintenance of to QX displays year. through the due the

bottom the to believe projects, to performance adjusted first which drive is a Babcock put flows, and winning turn the strong improve returns. quarter will EBITDA line us costs back year to will position on we and over this, The Wilcox call our team controlling our execution I projects cash results profitable full in our achieve deliver focused Kenny. shareholder significantly entire Given targets. now is financial

Kenny Young

foundation expanding and ongoing efforts strategic Lou closing, secured launching implementing internationally, for cost significantly in have thanks. strong plan, XXXX saving our additional including a Well turnaround and reducing segments, our actions, initiatives debt new provided of ahead to We first continued ability quarter ended confidence targets. adjusted of giving in our execution further strategy. us the achieve growth our our the of EBITDA and well our internal

on sheet both balance globally a to and in us through Our strengthened inorganic puts favorable position and technologies compete organic emerging mature opportunities.

questions. We are a our as returns our call few assist creating stronger And to and Environmental to plans the who across for turn opportunities grow segments. our we is profitably edge Cindy, decarbonization With focus technologies emerging our forward, back looking and have Thermal long-term seeing leading continue Thanks. Renewable, can I shareholder will and over Environmental stronger executing segments. Renewable that,


Rob Instructions] from Capital. with Street Lake [Operator Your comes first Brown question

Rob Brown

morning. Good

Kenny Young

Rob. morning. Hi, Good

Rob Brown

is of the start in, year? activity for is seen the for XX How open next pipeline I how lift? really COVID restrictions up that sort the particularly Renewable, developing I flow the of first of that on guess, as to months? Environmental. sort And pipeline have projects And the My do the guess question you

Kenny Young


one, are date. into things; proposals normalization. bookings will over seeing our continues significantly little – back other and so those several a follow-on becoming a either seeing which positive towards proposals, about activities that or past in are and have presale increased is a more a to direction, are activities – we is are talk move very X as months often now later We on we COVID we means neutralized But follow bit shift seeing at those the on

proposal number are and to levels like. emerging we of activities and and we of the and there yet, a on that but back had the not last to We year up legal been clearly do working projects starting again see negotiations come

were And are some that this on COVID booking movements So, seeing previously we be projects or were to we due emerging. lot to look year now year. later of that globally projects delayed are next working that forward a will positive those on into we

facilities, but interest level we internationally range are efforts of just say, on seeing even well that developing renewable plants, a And aspect interest from decarbonization the in would renew in and from are existing that. on in bio-diesel increase waste-to-energy top decarbonization those to developing engineering we in type of the technologies for to are As discussions facilities technology capture the as are of facilities maybe I steam see putting generation interest well. customers around aside, projects or and to facilities, in that, be the both as procedures would around do to and or to as add, And of on in starting But U.S. now to thermal. sort we required well facilities are able adding are out processes we with in there further we and also seeing carbon type our – the world. energy waste the technologies. interest some several seeing, And as energy in new those we renewable

or some in because lift. seen increased the starting globally So, some on of areas, COVID of these interest – in an now of we have restrictions that to lifting COVID

and of standpoint. from are capture environmental in energies obviously, that I carbon interest also, an come from just think, We renewed some demand seeing technologies renewable

Rob Brown

most potential you opportunities sense some of you you could a business? with you there talked verticals that could the sort and of verticals, Okay. how on Thank impact And you. give the but us the then growth inorganic named see the and that

Kenny Young

and morning in are to complement of looking that, we maybe a drive that particular have that interest whether and that stream out be more is creation both that unique COX carbon can of think as describe standpoint in more Renewable and some help some capabilities technologies mentioned on have on that our which different of is so the to core technologies and smaller this be sequestration from at presentation segment we have that that very here Yes. we area provide may syngases, perspective, in best opportunities seeing companies sized forth. to for interesting the The pure bio-fuels technologies of or some created unique we a a so or there that capture that from me way capabilities, of around complement

looking a So, we technologies. at were number of

broaden and that Some that as of we time, scale we that team up a Parts little mature some may in in cash obviously, we leverage sizable the and margin internationally are can of well we higher or that capabilities those but believe that scale driven either globally more in management there marketplace. are put further and can looking At the distribution the to and our flow and smaller bit as type can the are services the and U.S. be companies services, place. same

some U.S. we are those accretive capability as the scale well are we that those ones markets in as but can the unique and to smaller immediate long-term bring bottom as top well to edge, to technologies are and the as leading the line cash those some have that see about a revenues bolster of flows that the international of and excited So, and synergies create and line

Rob Brown

Thank will over. turn you. I


D.A. Karimi from Davidson. Zane with comes Your next question

Zane Karimi

gentlemen. Thanks question. for taking morning my Good

Kenny Young

Good morning Zane.

Zane Karimi

typically those backlog, usually but provide first upside are services particular, seeing seeing you it now in I well? that growth most backlog. here, you segments And are in you But opportunities So the or in earlier, the in in? you an kind here include should of and commented off you markets your around on capture from markets that as parts update you particular could don’t know regarding

Kenny Young

plants, some little parts Yes, high a in services we come into can, to we sure. former. a us. let we – – during a can we some whether levels, plants as provide a during so had outages It’s and a that return about some will, limited me of There Well, start margin that go and gross usually lot lot little they the have you we business fall which industrial part start because and a in I period. maintenance year. backfill But early if we is occurred business, QX, with But for a enhancements, of normal obviously, bit the the amount of positive. outages of on QX lot the with But publicly late for us the a particular bit the XX% forth COVID, then obviously have margin talk the the often to were and platform during our XX% Texas for seen of much to latter, a return business delay is so was utility, starting got a seen parts which parts of the on of and heavy to electricity towards if the of weather where outages. very last back those of

put So, press a good since to utility because bit in expanding we the stronger those the East are off the releases too, and that this to services to those international in is revenues furthering on we region normal parts lot returning need from our customers seen overall of we for of levels. starting Europe have have news just well internationally aspects about hold in running the out closer operations we parts but longer, us and pickup presence our plants as is the Asia-Pacific revenues that, to The the other or in our coming stronger business. as Mid and talked and little augment see elected well in

strong strong complement always for cash less a order on revenues process we those standpoint, lookout our on organization. a strong cash and those. or or solutions runs distribution purchase and products can And infrastructure from have and mentioned, M&A flows. that potential that typically the team are as broaden on typically very, that the XX-day we we we or to that as very think management So further very companies and It’s with margins to can we leverage

strong on. to us area for a that it’s keep our we So, focus make sure

as world a backlog to greenhouse responds fuels the U.S. lot that of the years and the is back trend huge And or to you segments. On gas these waste Europe as aspects, from into world goes, – – set from – more took are not derived eliminate issue really to not how looking and we internationally. lot, this premise the a as move wanting regulatory far strong methane I see only the most, if to the renewable – we talk again, is as mentioned, type all, policy about whole is this of the this the what fairly but around is fact renewable methane a a is a landfill at that landfills from usage. few position basically also in towards

landfills. curb effect to drive there methane about trying on coming and COX very of so is. result from this, think that talk a to greenhouse gas is just as I has point a the methane important been a the landfills And worse than from we XXx but it’s And reiterate,

not the we if mark. to, methane missed address greenhouse address world going a gases have we landfills, from So as are completely and

We in are the not even game. playing

on been a big that. So drive there has

biofuels types outputs be of as that the U.S. waste could in waste, to starting whether fuels, ways from energy create are are different waste or see it in or of and waste interest more to different to looking different well. more what at gases of various be types We

are market be to now could to Some invest that production. relates see of creating energy into of U.S. different starting in of needs, opportunities But we the elsewhere. to looking it some more that to be able developers could those this are types in biomass, as be and

are And they on – development So we are seeing – U.S. developed opportunities. in are here those those phases. that early the in lift now

years from starting we that Europe are strong. are implemented, Internationally, those well as So but very the UK and occur. are as seeing I out to said, being actually

our our grow Asia. see well – pipeline backlog particular continue as We in those in to as markets Southeast

China of reducing void If methane looking even included, the you Australia, coming waste-to-energy at look at all a landfills, a fill on COX technologies type environment. the load other as the more Vietnam well Korea, impact base parts much are bigger Indonesia, from more region, reduction aspect and of as that to which generation has on from Japan,

all a pretty fact those of built we areas. it a we – that the again, And solid are So leverages areas. those in in activities up expansion seeing lot that of particular

And lot we large are there. those opportunities public East so same. waste-to-energy the you in Mid eyes UAE come. a largest we is facilities – Mid out on waste-to-energy. doesn’t big, starting this in of is of to kind find has But opportunities that of Asia increase important. There process Obviously, a all winning now build seeing equally Bio-fuels seeing is but still as largest in are obviously a East, the the world. to South, there, can scale the that see one application, bio-fuels from smaller increase right waste, one is But you are thought scale an but is in in Southeast on we that see which front. it.

all at opportunities obviously are but looking U.S. those to are a see worldwide grow starting well we lot of the as we So areas, as

Zane Karimi

and That’s you. And COVID? guys? rebound you what about for you or have of you Thank a see likely out disruptions, talking helpful impact implications delays the coming bit far? more you a sure. And or then COVID the less think these COVID the so quantify it’s When been that you and for of passed little do to segments are of any faster had believe now

Kenny Young

description. not so example, so We about by projects, COVID, its because variable some wide of haven’t and tangible calculated its and for specific mean numbers some that the impact is, projects, some it’s I delayed. as what we talked and And tangible of of were in on new its

like. they during were just the out were everything was right, and COVID, happening. trying figure economy, to whole the initially was historically, were trying what it Everyone because back figure shutdown, – delayed people was closed world out go you to Borders If the and putting on hold.

had worldwide, that on you – you just projects other were hold. So aspects put and had

As needed see you example, or reengage that take projects months, plant a an moving just that permit X normally drawings into partner the the now for company, or out to do construction some out drawing. send those into to or and took on country. a progressed started you country last through, mechanical country around are bookings. civil even to weeks go whoever might to that people may it accomplished. get our mechanical where fall, Locally, But engineering engineers those was of give or the something to in or and to to aspect like various of client weeks to the summer to and X the impossible the new those various It customer borders, needed be some drawings year they X weeks do something takes we a cross get and get

the those of of out all and new extended timing processes just of it those time, obviously, So out, also and bookings projects.

We were we saw deferred. also projects – clearly that

numbers smaller doing can to Others shrink defer we’re the COVID the from deferred groups, customer to Other a smaller delay impact work, working project their the on utility delayed out. site. that the of they we limit saying, customers basically, so some where, But try or on going to perspective. along." to the on a was outages of it of those continue those maintenance projects do went were people, keep moving mode those, we’re a wanted going hey, to So where currently but into customer

like We coming as on that had and of obviously, – normal have starting seeing still And We’ve got towards direction to keep tangible we we’re we’re at so separation in we’re several people COVID. to impacts return could elevators a those of we’ve separated. got of and limited it talked projects intangible myriad COVID or that that to publicly, type the levels. least about of now and out where globally, a are moving feel we’ve be So lot so numbers on forth. on people

return. bit delays time revenues But as delayed So starting just see get add well throughout things and you’re those more little to and to projects. those a

the and year prepare then see in a are You’re that that And plan with into on as robust it ways to that environmental for now well. and customers the or a leverage relates seeing of some decarbonization, more and clients now looking looking fall our at are as also by do plans a we’re where much more there the starting it as mounting pipeline at technology both enhance lot is then possible year the our technology, can to those – replacement outages worldwide their developing upgrade or of and to pressures seeing technology. that you’re built the construct going next would activities decarbonization. this as And normally outages to being making customers of they are parts upgrade customers to

So we seeing now. that are just

post-COVID a of some in is that world. And

in is that’s a that well. new world regulatory of as as Some happening speak we

to this to – standpoint. said, projects that cutting or has our out from done costs bottom cost But known building good Obviously, more influences actually closer those costs business. working on a to and building we actually bringing what so now of all we’re we year leverage up delivering up And a great visibility – and line. parts just be job revenue, So, on on this team we’re we’ve actually as are that really we can management but cutting got the revenue and business. not the to –

business highly there, and book into our the and to of cost to So both we’re going projections that confident knowing all to visibility that abilities confidence those things the the that is and overhead cut be. of us company, through going we’re where we’re we’ve know out give and what

Zane Karimi

that. you very for much Thank


And with Riley. B. Instructions] your Alex Rygiel next comes [Operator from question

Alex Rygiel

gentlemen Thank good morning, and you. Good congratulations. quarter very

Kenny Young

Thanks, Alex.

Alex Rygiel

quarter. kind questions of here. in and pull demand underlying it of mostly back was this sort any or forward quick Was is all normal? the just of first Revenue Couple ahead return a to

Kenny Young

Not other U.S., performing It’s were forward improve that return to aspects of them stronger for – none several which pull us in forward. projects construction here revenues through remarks or controls, normal, in standpoint. and helps few the better the think that margins. from on I where were were pulled project mentioned management But his in just – had we Lou back that a

business So mentioned too, impacts Texas, better to parts weather after up little well. parts the to of as right as pick the back started visibility as as we bit, cold the increase begin business well, a

performance where stronger based over revenue So we’re be. we we to on had demand – going just increased thought we

Alex Rygiel

kind confidence a this earlier look backlog, at backlog? on forecast that today, how your in and profit look And you your bit have answered time backlog this of the and as backlog much as the you on, embedded of you at in little but just do executing you that’s line

Kenny Young

Alex. great It’s a question,

so that us X our to the revenues activities a But we’re be be customer’s or or our elements in related we’re issue and all being that in into timing not much could that from could forecasting projects always to it the third now the as think anything may it. looking perform recognize There facts revenue here and it. happened more week without really in a much revenues a that – behind better We – a quarter job out will how may or not plus and well to those will any We will to lot as that And standpoint does and anticipate and case recognize be. company in cost that of our we looking our and at third-party material a to of each fault, is try there, factor outline internally, delay we to could at be the those well, a there. team work each visibility, and look looking company month. at backlog as complete – have a the of how we from forecast that at own whatever any trying that begin disciplined issue, incur able just good of visibility minuses and getting confidence that weeks the

is on a there well projects those daily and review give on costs basis of to the into forecast on on even not how with and basis and those each people as is and backlog, associated So a of as which us well, aspect. performing a projects the is we’re but as each on basis services scrutiny that forecast looking tremendous a lot weekly a scrutiny parts numbers, we’re analyze amount goes a of the our the lot that these the to as of that quarterly in monthly into too, there better of at parts goes and side, visibility

for So of as And the good we’ve aspects on projects. there win negatives is eliminate and a our can and But lot that of we’ve flows we that And the minuses sure or work that those increase all going be in that and There got cash negative going to numbers. to manage occur and then goes into make it’s we always visibility accounted relates flows is tightly more how or the into obviously, positive that pluses managed positive pretty to the that a to so. that projections. internal as got for that well, it that everyone. obviously, cost our so we’re side stop

Alex Rygiel

Can to comment valuation? M&A, then really on seller accretive well. looking on looking And many of are and proposition deals here execute you’re value for sort attractive Sure. turning over to some And as your expectations others what is you markets here? these at at

Kenny Young

a lot and overall out we lot our you again, a is our board. there and – technology environmental a talk And think underlying we the company twofold opportunities that Well, look is on that that renewable have when there. on we at of across a there we segment, – about, goes at as look I in as

a that easy but we to it. energy look are lot add at things, aspects talk we going to segment, are our about technology our a below portfolio it lot there renewables additives of around overall that in think right? participate. when more us make It’s waste into obviously will to means attractive other renewable we’d an like So topic, of to for and We technologies there

of dinning We little output those technology efficient in steam very There best dinning grade have process the facilities. and to heat and technology. along grade pockets in order moving or world technology the burning of is trash in the some combustion that from are the maximize

we when could that combustion go. And have that might we we we think they at to example, more at and will we effectively today can augment of a but and look we complement from to with waste that able areas control ways pop emissions what of want example. For we the robust, are structure where it technologies, the some associated than that more standpoint, we look for up have, our long-term cost lower make that think little

consume as there no a landfills, energy, talk energy clearly on to in that just burn to for We’ve waste waste need doubt. be and seen is to I’ll As going we create focus talk and it to about – second, a we about worldwide.

ethanol the of have and see that used limited presence of production be the create We’re in fuels waste ways been and along. a fuel to move internationally. output that U.S. that But today in hydrogen. we’re or different can – bio-diesel even that’s will hydrogen or going pellet other to that limited. whether used to utilizing one use and for types types that in the large to for, be different leaders or waste energy, of is reasons anxious do the different creation a of one kind some help bio-fuels worldwide or create has areas now, obviously, of of number be of the creating cases, It’s been very of of that but changing on we actually to

All are of interest those us. of areas to

looking rapidly R&D sit we have of unique the is scale internally think the Some of can there up in space. we’re some we of those capabilities companies some that technology and developing out other we that perspective, fairly an around but there from technology at that

to the actually stronger ownership we product take us. a IP we those will have to revenue to either through stream that them something out in those where we And is so – can own there we looking there that a that. some are bring where it might position into help capabilities want for of might where – sort that, technologies in, or minority license and obviously, and take be play further for market and a associated Others develop physically the investments with several of own – or maybe

a renewable from at standpoint. looking are it So we

relates also and green well. hydrogen term those We blue market to as as is in the very to production strong energy, longer seeing hydrogen production We’re hydrogen. we think be of a it opportunities going and see

producing very source. at the be facility, very technology that producing jointly same fuel is as the be our a large capable chemical heat to in where created Our own same natural hydrogen actually source, looping were scale, small we the output and but through – could as create gas, presentation, fuel that time it of or say, a you a level mentioned we able it on of small State of could Department at Energy a hydrogen Ohio be burning our can facility you with burn previously as

uses that aspect some we’re would unique, capability, around have complement that So of in technology. the that of we are look see partnering we smaller that that double and that COX at There be to interest some might We think sequestration with use very is – technologies other sources can companies capabilities capture. a that starting that. lot unique up of

we So those opportunities. are think all very of strong

are some of gas think we as – a well well and industry standpoint, as process. that and be coke those coke if facilities other not the pet burning but blue again, looking interesting in from worldwide And there looped super type pet within can our green basis, industry and you creating the direction, split in look an into the that’s is going at the to with industry. chemical there out be technology concept used petroleum to the on, a critical opportunities or we The very of smaller energy on scale that fits oil oil around stream interest fact that see is there, is move

bring though, some improve so is will and again, And add services aspects that At into that have tuck-in there. we these the about us that there by our bring companies. the to we some fact those we that on high at fact structures high where just to you from control we attractive but looking too out that flows we reiterating things of this those attractive margin these companies those cash companies companies management But we builds wide companies the talked RS like around it be that capabilities on an the always the line, the right larger other overhead those can would have ours. technology are cut as are overhead same of where acquiring to may that time, that those and there our as variety think cost to and agent on of well. overhead, can services just so giving we are services have of the team bottom And technology,

in our thermal those of we’re some sector will And that looking be at.

and when well Some you and how think and those of back sector revenue provide the at maintain those effectively more these I exciting can some can bottom actually line. type talk as are the look and are so plants. those more of that we well businesses, are as in manage And bring those our typically long-term opportunities of as typically, we services renewable to to parts, about services recurring

I looking So are that we they helps, that the at. of know, if are some but Alex, don’t areas


session. now Megan back ends This Q&A the our I conference like to turn to Wilson. would

Megan Wilson

call. A our our concludes website conference replay today. time Thank be will for a on That you for available us. limited later joining


Ladies and gentlemen, you this for concludes today’s participating. conference Thank call.

You may now disconnect.