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Charah Solutions (CHRA)

Participants
Tony Semak Head, IR
Scott Sewell President & CEO
Nick Jacoby Interim CFO & Treasurer
Mario Cortellacci Macquarie
Jeff Goldstein Morgan Stanley
Brian Butler Stifel
Michael Feniger Bank of America
Steve Schwartz First Analysis
Call transcript
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Operator

Good morning ladies and gentlemen, and welcome to Charah Solutions First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After today's presentation, we will conduct a question-and-answer session and instructions will be given at that time, if you would like to ask a question. I would now like to hand the conference over to Tony Semak, Head of Investor Relations for Charah Solutions. Please go ahead.

Tony Semak

Operator. you, Thank and we're everyone first for us joining XXXX Good you've thank chosen as call. delighted results our to today financial morning conference you participate quarter in review hope the this We a had chance morning. press we issued you release earlier to you at find the haven't ir.charah.com. www.charah.com as or as press section Investors could on Presentation simply Investor the you of event release well In supplemental our website

Scott Financial Sewell, Nick Joining and President Chief me call today and Chief on Executive Jacoby, are interim Officer our Treasurer. Officer, and

Following remarks, and will customary look conduct forward their dialogue. we prepared question-and-answer to session continuing the

releases we remind results statements Act. to risks statements are regarding we remarks Before actual Private among earnings we calls. in forward-looking Securities the disclosed would and conference I Form statements from to these Those These including forward-looking and and uncertainties currently well believe begin, Exchange the like Reform as any release described include, risks filings within you have Report that that Litigation disclaim to in Commission, obligation to as include cause Solutions to our with those be XX-Q. on subject Quarterly statements. our meaning our update the that could forward-looking different that be materially matters in earnings of our Charah Securities others, We our

and earnings would call Reconciliations During Sewell, today. thank this our conference presentation, our applicable to now turn And like supplemental the to measures. measures Scott? for President to the to will GAAP be you make financial call, us website. in our release, Scott we and non-GAAP joining can CEO. found I over reference Again on

Scott Sewell

review Semak, to regulatory an introducing developments capital our and markets expectations we previous April Solutions customer for he of of Capital. call detail. a confidence served expanding growth given our are our you I'll today. corporate bit management, Investor joining thank to Tony Head I technology growing finance. our experience Charah for in late interest our has discussing Tony provide business would and XXXX. ability to Invesco us. and of including the update for start like initiatives extremely in pipeline since joined our Solutions guidance value in strengths, and to This new working revised revenue financial us deliver have Investor including expectations portfolio our also about our recently in highlight Charah our opportunities years Relations. achieving Investor him and very on morning I'll shareholders I'm Tony Relations, results future and Head XX rollout with before everyone by our Mortgage our briefly Most pleased as of more XXXX Relations the and morning, dynamics, attractive and market and us. competitive excited favorable Good our review

increased we an continued weather the to a year. the as in first Revenue segment X% impact now capitalize the own precipitation primarily XXXX second position at four SCB declined solutions remediation opportunities driven Solutions profit due that first The first XXXX. and partner Environmental average to complex continued the to the and into I'll in we customized in are above of half did quarter review with customers months our of turn We of ideal in XXXX quarter of bring of Gross we to the challenges. to acquisition three not our their of environmental by adverse on which EBITDA sites. delays results. these experienced

experienced XX-month in the through same on basis, byproducts businesses. both and and have April All trailing a of key sales results our record. above remediation experienced rainfall states periods our wettest average on The

future periods did unanticipated margins. not customers in a recover reduced to remediation cost some expect which on the increases we the Although there of which from side, we byproduct were sales recover portion gross lost of the

the operating to the despite contract. Our final CIE from quarter positive increase end for Brickhaven, million related from flow comparable an respect the Brickhaven Riverbend cash the was in we With of of $X March. first to and received at delivery year-ago ash period, increased

As we mine noted be ash not sites. previously, supplying additional Duke will to Brickhaven

for out with contract handling Duke Our laid a situation. process the

year. cash to the costs substantial with Duke associated of half in second expect from project continue the a unrecovered for We payment this

review will I several Next recent accomplishments.

only have progress since weeks our been areas call, business. conference in seven made previous Although has we it our several of

$X previously. to than our fly billion additional more source ash an opened multi in Our $X.X storage terminal expanding network. billion increased outstanding We debt from have Massachusetts

customers to this continue utility receive ash beneficiation the from into convert second expect of and including XXXX. technology MDXXX to strong We interest interest half awards internationally our in in

increase recognitions sized bit demonstrates Our further two facilities expected bids we Approximately number excess of are both to for employees to this bids are complex, scope. performance safety billion. quarter multiyear is segment. depending that where total with pending Currently to are expected these the a which the in and Solutions a of half I'll spread Environmental of more to decrease later to weighted bids. the total grinding our on medium third completed developments a The towards several our or much detail. discuss We've our slag revenues continued these includes $X.X our few year. across projects, And larger, small to under which construction are excellent more be in revenues in customers. may now heavily commitment received remediation contribute more each grow larger

capabilities. remediation those represents sales fifth of byproduct we would Over and that technical Environmental billion. are is and our a bundle represent the negotiations contracts Four of these and with existing received and exclusive segment The combines our of potential renewal byproduct services that ash segment in on have approximately three our a XX% with management opportunity. are and contract in customers few sales in a $X.X maintenance of Solutions verbal an awards months, project past

ability customer our services to meet of example to bundle needs. Another

We of work to XXXX. the contribution pending pipeline yet supportive by revenues with pipeline environmental favoring that these to $X.X the of contracts has I'd and the quarter by is our note ash our in expect dynamics of We and includes driven that opportunities end awards third bids, of been discussions considerably beneficiation. continued while that not be an beginning larger of potential that expected faced. on had will converted the billion see expansion focused have regulatory quarter remediation first

remainder in and into to front over this we've noted, this XXXX. progress expect converting As pending more good and of success year to have on be and reporting the we made awards bids we'll

a shift million. expected However of to bid a earlier the of year, our revenue what from in we from due timing million $XXX decisions a guidance million to to range to we XXXX this previous $XXX of million $XXX range had $XXX reduced

haven't later but are occurring decisions bids we we any significant award expected. Importantly, than lost

to revenue meaningful XXXX As the driven in in our we revenue our growth had by occurring than guidance. revenue a of the our most in we for anticipated see we result, those XXXX. least XXXX from from at will three XX% previously growth outlook to in XXXX catalysts. contribution confident benefit be We original guidance, remain Despite reduction with XXXX less do win the

bids, additional of the bids XXXX and latter quality to-date, to First, convert received outstanding part awards to of the awards XXXX. and and our ability in size verbal our

bundle about value and growing a to ash regulatory that projects a contamination dynamics ability design And remediation compelling with unique the challenges. third, ash technology complex market a favorable see including into scalable of in Second, groundwater to customers accelerating and beneficiation concerns excavation low environmental in as potential highly solving XXXX. we history our proposition industry-leader cost

expense. We margin adjusted profile in due guidance higher or revenues of to the the to scaling our higher up revenues expect the EBITDA comparable revised without the XXXX expected also XXXX to and ability margins in materially grow level than growth G&A

our the I'll more and region. plants over inventory provide double Massachusetts sales developments business regional an network year, new this the a update Next region, years, in concrete to fly in ready-mix terminal in producers been storage supply have to initiatives. throughput of to for adding regional available our terminal multi-source several increase and Central demand. Earlier our there The technology sources In we coal materials so England. local on than this ash New the many opened in our are the sale will our growing to us retired past insufficient ash allow byproduct

network multi-source has now locations England, the and Rockies, South New Our nearly across the XX the sourcing California. Mid-West,

an spending to invest well-positioned and respond in occurs. infrastructure as this we expected to to continuing growth We’re in network are it

noted previously, business. seen award couple terms with technology in several have our currently this to given major technology of been initiatives, their strong and a to in deploying begin contract. interest potential In two a we I negotiating are negotiate customers as of cases, In utility MPXXX have verbal we from

strong early stage. seen from interest an have international customers a of at although also discussions couple are We these

other fourth we one modestly and we As the fourth. completed to Gulf are on the the by end our under the in the Both noted Coast West quarter to the expected conference construction third of have quarter two Coast. expected slag to on be and grinding quarter the call, facilities third with facilities revenues contribute in

supplementary demand. granulated our supplied cost both latter use where start scale for In on ash materials or small constrained. to cementitious down large stages planning facilities, market the compelling its be slag currently on we of low we SCMs facilities opportunities producers. this production ability is advantages part can call, of the to and XXXX. we two previous furnace technology those of ready-mix across profile blast As technologies the to create another supply up the fly then in of in there have and include and noted relatively concrete grinding expect are construction to which quickly believe these We grinding The and patented markets

to expected Dominion and year generate facilities. We additional revenue requires for conference as drivers and of combination expect CCR a beginning this facilities I launch modestly byproduct which more reviewed legislation closure business significantly Virginia beyond. is XXXX volume initiatives On in in be call, clean and of incremental the but these sales our previous growth recent our beneficiation to for

closure. we our here As places, opportunities advantage. opportunities the competitively XX-plus-years business remediation I other significant with as in the We see excavate Environmental planned Department to respect to us requiring XX business to ruling appealed next Also see landfills of positions at as nine these months. Quality to storage previously DEQ nine order regulatory lined believe as competitive Carolina issued Duke a our in on clean result of the clean our not well has business example early bundle technology or appeal to for We capabilities MPXXX DEQ a April, closure. for Duke beneficiation another sales as Energy view over and and move the decision indicated, the and basins new of to take trends North our ash may byproduct the favoring legislation. a the this we

that creative where remediation solutions discussion provide result discussed in could Charah are this widespread continue or environmental which we of plants disposal at significant to concerns a potential policy As public example sites. solutions. customer recycling and we trends this on plans about quarter, issue another contamination including much create growing environmental those and groundwater of to or opportunities for and is increasingly reporting see Regulatory The beneficiation driving ash for CCR plays role. near last remediation of coal reporting issue needs

first solutions. these to creative puts could other Also states actions require us a uniquely proprietary with technologies concerns and results are plans. of in With opportunities traditional developing more of approaching remediation pipeline approaches will Jacoby focus Nick our more guidance. our groundwater and XXXX likely in deadlines their our effective develop position Our competitive compliance on future support our in regulatory expanding utilities about confidence to and financial cost potential to now on closure. drivers our detail clean our These business. been contamination the stimulate provide ability to developments Growing key increase bundle of further that, have quarter

Nick Jacoby

quarter, morning review on provide our balance the results and an XXXX sheet This financial liquidity, guidance. update our Thanks, our review for I'll Scott.

XXXX. awards; is XXXX new contract Brickhaven significant the not us call, we ways. XXXX completion previous the due will in transition of in year of timing our for The with to that early in business offset with EBITDA into XXXX a loss discussed we business As several new of from EBITDA accelerated

to XXXX We $XXX awards expect us by decline XXXX in XX.X%. $X and SCB XX% of acquisition track Environmental million of interest year-ago GAAP rate fair net the later year expectations. attributable of Adjusted for value Revenue a Gross our of profit increase year-ago EBITDA for a million into swap $XX margin gross million to of put We $X period. reported our XX% down increased $X will million compared million that as was net The in $XX non-cash significant to million our first decline increased lower of profit segment. mark-to-market adjustment a $X line to $X.X revenue period. $X which the with million expense. declined quarter on from first on loss decreased growth interest attributable profit. of million most back added was About The of $X was The the lower decrease quarter X.X% half driven XXXX profit which was this a EBITDA the primarily from and or million the March the gross strong in Solutions business to in to quarter Gross million. was to or in beyond. new or and driver XXXX and the X% the revenues.

In addition back periods, was expense non-recurring for although XXXX, comparable to we G&A in G&A million $X reported expense of two adjusted the EBITDA. added

to segment, XX% $X revenue due profit in profit Turning $XX a Remediation Environmental increase of margin to our for from segment $XX to million. declined segment, in XXXX. weather to of accounted reporting net remediation for Byproduct revenues with Services started our million $X to others. review the the and adjustment from $XX in to or two discussion gross quarter increases. remarks. business, to technical a in and or quarter three sites to adverse resulted million cost XXXX our and attributable $X maintenance total $XXX $X segment Compliance Services services of outages In remediation Most Based for decline the million the the decreased including the to weather XX.X%. segment schedules, and expected impact million of rolling million. six we the our we off. issues of the and margin unanticipated of revenue two acquisition revenue million have costs jobs work sites through noted a three and To-date X% first these million Gross SCB first and in of at in Solutions each as completed completed In decreased site issues of million an to and of or segments. In affected Scott gross mid-May, specific Nuclear increased our March This his and margin declined $XX delays sales XX% gross the was on contracts in we XX.X% flat outages. on results. two recorded

partially from lower of profit reflected million of outages fossil decrease approximately The gross added adjusted costs was on profit the start-up mostly outage lower service revenue the quarter. Nuclear XXXX as margin APS effort. by the the offerings. Services fossil lower XXXX lower amount resulted maintenance modestly of reduced modest services offset the was nuclear EBITDA. APS to the for increased profit These very in and the from with business the a $X.X was to were the contract Gross than associated from service January. in revenue start-up in gross the Gross in we The Services increased the the offset scope from and aside back business fossil partially contract as gross were X.X%. revenues period. Nuclear year-ago However number new profit fossil by nuclear in relative period anticipated to increased prior This X.X% higher days

our to discussion disclosure Before a like of out in find segments, point you helpful. I that XX-Q this might revenue moving our on from would

our we technical byproduct In down revenues which footnote compliance only revenue percentage categories, XX, three products reflects statements mostly which and projects on percentage and of have in segment. for services, broken accounted provide remediation revenue; financial everything basis; revenue a our into completion but sales which those segment. and Our are includes by completion, includes else includes of services maintenance that

cash will review I flow. Next

working the and in in estimated CapEx flow cash cash $X to flow of a quarter quarters million. $X.X positive a on contract. to roughly or $X operating $X contrast operating modest increased despite equally impact million capital the Changes CapEx. million CIE, earnings Our in few the past had in to in and million maintenance and increase split excess Brickhaven technology-related billings, approximately the quarter costs related growth was primarily between CapEx in

new technology to expect continue We trend rollout higher work to remainder CapEx awards spend as we the receive our year the initiatives. and over of

level. balance XXXX nearly In the was $XXX our and consolidated to Turning sheet from March gross we of which year-end XXXX, unchanged liquidity. XX, million debt had

which at $XX.X times the a in times Our million. decline XX-month net EBITDA due basis XXXX ratio trailing was X.XX to up X.X was leverage from year-end on to

our million we payment, year, Brickhaven of to related approximately unchanged which calculation Our Duke rolled leverage in expect ratio this liquidity loan amounts the the received and gets our our by later XXXX. we under After would year-end XXXX portion ratio was expect again year-end. anticipated the as EBITDA $XX however, from we lower the nearly outstanding from a into we fully term increase to repay see reduce revolver

Looking growth our should drive we XXXX ratio. in beyond, EBITDA improvement ahead in and to that leverage the expect

XXXX our Next I'll address guidance.

to proposals noted, prospects for XXXX range to $XXX range We Scott of $XXX we guidance confident million from awards. million. $XXX have to work new million As remain of converting revenue the about a to our previous $XXX reduced submitted million our

the Environmental business a existing has not and $XXX revenue our is the awards. course of only revenues The XXXX on year, awarded revenue the million business. Thus previously. a clear by higher over and in remediation we had expect of significant in revenues timing should dependent revised revenue substantially timing we in as sales we delays XXXX our be range compliance segment decline byproduct of new additional modestly that is offset our end work Brickhaven partially contribution year. through decline acceleration business services and do by receiving as these underpinned expectations. XXXX However At with to of new guidance the as the into the XXXX result is to we contract business this lower and from new lower the XXXX awards to as of Solutions of to-date of a business level, The to slipped it in expect that previous continue will to and us move be relative

on will We and lower year. XXXX revenue services technical decline by lighter expect with maintenance services to XXXX our offset a to modestly services in fossil due segment be outage growth this in the in schedule nuclear

guidance the a our within million EBITDA provided come range terms million. the we In maintenance segments, segment. from maintained XXXX to will technical have split as the adjusted of for and the half we of more late XXXX Notwithstanding still that March. for reduction our the when than revenue guidance revenue services $XX range. in we our but revenues view adjusted two lower moved between $XX internal expectation of EBITDA conservative expect the XXXX, outlook to revenue lower for is XXXX, in has We this With guidance

is our margin new Although assessment new business we anticipated expect of on latest type, is lower, on of the from business revenue work our complexity expected new amount awards. gross and of higher mix, based that

of of not on optimization a limited including cost and available but to identified number jobs to us performance efficiencies. We have also levers existing

would guidance, lower the that quarterly we be quarter the second note EBITDA level. than providing I the expect not first are of the adjusted weakest quarter with we to year, Although

year. in to XXXX record Appendix fourth provided the up call been in of the we continue in have subsequent with the and comparably yet were with quarter, which contracts previous sized detailed supplemental associated in the presentation. second our the several quarter March projects. quarter a these on largest the first completed the some I new would to on From quarters the also and being ramp EBITDA like contributor with of color you review items level, contracts Riverbend anticipate replaced we Brickhaven meaningful by While we not

note partially lower expect For amortization than to $XX XXXX. and XXXX, which XXXX into the $XX to the we completion mostly G&A option amortization the credit be million contract the amortization component depreciation XXXX. of expense in first million a included Brickhaven was We million the that of liability offset by of expense amortization quarter level depreciation of of that includes of approximately accelerated due significant intangible assets million in expense purchase is recorded $X the and $X Brickhaven

expense the of purchase stock administrative of Brickhaven For option XXXX, This the in we non-cash of expense. liability. figure million. the amortization the excludes XXXX items expect XX% comparable ballpark $XX non-recurring amortization Approximately recurring of comp to consisting and the and general and be G&A is expense of

to $XX loan expect result the of $XX refinancing expenditures. this depending interest be as in million XXXX cash payments We level debt year capital timing the million repayment lower term significantly range on of to and our a of the of

the the However record term on the to level vary swap our respect depending of GAAP expense with rate loan. will we adjustments, mark-to-market interest value non-cash on interest of

free that of as a contract. expect cash flow will year this early with the we be positive expected later of year payment result the completion connection in significantly this Brickhaven the noted As cash

are conference by Brickhaven call. an our I'd we capital on finalization the to so update XXXX not do second to we expenditures. our guidance pending provide time, this plan related quarter also flow at providing payment; Although cash like of

does forecast change not from our quarter commentary. fourth Our

expect new CapEx we to business this spend rate in $XX on awards We dependent of be CapEx of the replacement timing million. second approximately XXXX. half will continue the or of expect the to maintenance-related CapEx Growth and increase of

an update our months at driven and of conditions, As work our CapEx, next MPXXX the out on roll we to slag of to spend respect will necessary. obtain rollout market the through the facilities as grinding With the driven. while required clarity several greater technology assessment and customer new we technology related by of awards, discretion is provide timing proceed is

announce able that contracts we strong seeing potential customers and interest be we're noted, to this are Scott will optimistic by As year. utility

XXXX turn could rollout. or technology-related increase to back With technology continue million the of timing I'll of the of for call awards, into CapEx decrease could slip that, we million as the Depending this portion Scott. $XX to a $XX estimate on XXXX. Our

Scott Sewell

Thank you, Nick.

I in advantages letter we by on significant recent continue to strengths executing my our on noted and our will priorities. As competitive build shareholders, service to strategic

efficient to new technologies effective the and cost industry. bringing First,

the quarter, strong. we in to continue the customer has advance rollout our our initiatives; grinding of During technology interest and been technologies MPXXX

We are be excavation these to the is leader in our we market that the create and beneficiation. opportunities ash of not a in believe we leading us. we otherwise ash combination think industry continue and We technology have would a available key differentiator in to will

acceleration. Second, remediation contract

As you bids them a heard this progress increasing outstanding morning advancing number an phase. strong we in of made to exclusive our and

verbal these convert to next several contracts to expect over months. the We awards

also continuing half second into to additional XXXX bids the of expect convert pending towards XXXX. We

and Third, sales byproduct marketing growth.

And safety and We finally, increase our to in addition Fly multi-source commitment Storage Massachusetts. our SCM Ash to Terminal industry-leading such of ash by as the expand network sales culture. continuing will the facilities through

two was safety Our including safety Department from North sites XXXX. record for two of recent the Carolina program at in recognized several our awards with Labor

quality their the confidence growth our proud enthusiasm compromising closing, of to and our we delivering teams are of high We safety. on have strong potential without ever commitment In for and business. services

have customers the experience open the let's for have competitive solutions team we and necessary place. deliver operator With expertise innovative We that, and our right it in for up to questions. and

Operator

comes of from Mazari the question first line from Instructions]. Hamzah Thank you. And [Operator Macquarie. our

Your open. is line

Mario Cortellacci

even to of verbal us possibility you you or little is give has the increased the I in of more maybe could can all a give and or Mario on there costs have Hamzah. be on negotiations maybe expected happen than color the to Could past? wins some any or is Hi been. us how a to the revenue gone idea during in the come awards? in negotiations us of kind Cortellacci I what lower for Maybe faster those the filling risks just guess some wins for little guys give for it color guess we of timing kind this

Scott Sewell

The we we it's Sure that you're right. think why don't as slower note have Mario. to in Thanks of group timing jobs for for getting range $X.X two into But billion, years that talked projects the more of complex. we're years now to Yes, that a timeframes looking about, that are XX% little larger. and term. right we're verbal I we've that than eight is. insight is those The awards bit projects always question. at are the The anticipated previously these proposals in important are talking the

example more than years. going going down But for us, we're path. an and provide I delays how I complex projects, these of our the RFP performing months these bundling how we're ash think with our some aren't conventional examples of to are projects were mean are -- it's So with a pipeline make unsolicited and just that technology remediation which which lot long us great of of closer experience to to these utilities faster. some opportunities Again

here expect would a QX I'll the to expect -- get in a guys phone we lot for be So announcing conference of coming projects call the next on months. solid the and you with these

to that we're note that losing not so very So just important timeline, also think it's think any, it's pipeline increasing, is more I we the it's And Mario. soon. of

Mario Cortellacci

or you I not there you outside at think know And environments Are it. a just model mentioned opportunities. international Got maybe regulatory business that you that on can I'm up don't the guys that U.S. any yet? if hoping sized I all sure little support expand that have further. I'm

Scott Sewell

now. in it technology regulatory right Europe of South a what's or America the different anywhere be or acceptance I think whether environments lot and Yes, are really of beneficiation driving else but there it the is

well the at continue performance So have and let to its them that cost potential and international customers watch now. really Louisiana several facility of we bring tested competitiveness as the we facility. that the our technology It's operate test ash, through just unit as right ashes

high opportunities just really So technology driving for those that confidence high, what's is in really, us.

Operator

comes question Morgan Kaplan next from Our from the of line Stanley. Toni

is line open. Your

Jeff Goldstein

the Jeff what more to decline a potential project I quarter? Solutions provide the Hey project on guys there you mentioned causing margin throughout but Can year? in could that color the you Goldstein talk on within for and about continue specifically increases cost delays for this and the issues little specific you Toni. is know Environmental happened

Scott Sewell

Sure take if anything I'll a and those of should couple from Yes, probably should frankly performance site been. Jeff, on that go if our impacts one ahead. miss and to site-to what you have was Nick I vary those not want

cooperate So we schedules get with going to four the months to didn't necessarily those. in track we're but able back weather just first the thought be on us on

of three an issue. it's those specific a systemic sites and really very confluence at not events unfortunate So

So Nick, of we anything looked and have as else, know I we've you if do see our add? reoccurring. to portfolio don’t that over not else everything projects

Nick Jacoby

thing off The only of the quite far coming it see up margin balance year. you I'd certainly that is think too XXXX No. environmental was the quarter. full-year We about in not when where the that fourth a say is bit,

Jeff Goldstein

All thinking decline. and reduction then you're think right, something help growth Was a related maybe expecting maintenance contract that technical guidance lowered seeing helpful. now Thanks. or before services, that to that's just back? modest and is And within XXXX specific your your me modest with growth also guidance you timing I you're more

Nick Jacoby

you said think Yes, it's as now, contract timing. think as it I simple I

we're mentioned really Scott losing awards. As not

months, it's of So again the timing months, just such and more really years. not

Operator

next comes of from question from Butler Brian Our the line Stifel.

line open. Your is

Brian Butler

that was correctly profit difference Just gross didn’t if EBITDA there in add-backs $X change and I of on the occur adjusted the change, million the heard so XXXX.

be can I of thinking a basis that as on actually back? because has increased those recurring no are about kind that SG&A items longer added be should So

Nick Jacoby

GAAP from it the it’s about you're without the year. at in you G&A Nick. their the perspective, add-backs if we I'd you increase. was it a to more not prior think talking a I'd year-over-year A SCB few But the we normalized flat. first say -- Yes, hey basis factors about when when recognized, specifically look owned talked was did add-backs say

we that we're at track the had what equipment But and cetera we expectations at impact. we sales So first last weren't was year-over-year said the stock for increase. had quarter at that's good loss still we last obviously company et other look helps of we drive various the if that on non-cash a ourselves look feel items of if we increase or you on public quarter. estimate full-year the within frankly beginning and the and there's a pretty the big so with year certainly like year And that comp just

Brian Butler

remediation Okay. in and guys maybe profit; nuclear breakdown you you give gross fossil or segments to -- be some between and growth And now? have can revenue the going that queue and color within the a do and services for byproducts is revenue

Nick Jacoby

Yes.

is me that reported you for confirm In second have revenue terms else. which there by all everything a completion remediation I we compliance let necessarily not byproduct sales, is is and but it’s remediation believe results but do compliance percentage of percentage have all percentage services we footnote completion is that a XX, Footnote is breakdown completion a the footnote. it's in which of

directionally the that's that been historically we information segment, think you below help that there. So giving detailed that extent of haven't achieve will that I below the

Operator

of line America. Michael the Our comes next Feniger from from Bank question of

open. is Your line

Scott Sewell

Hey, Michael.

Michael Feniger

thanks questions. guys, for Hey my taking

you side Can get there? you feel first help for of that was is mix, trying I'm guys it and revenue the it of margin coming that's the I -- margin a us this revenue margin range understand and the doesn't margin month how Just rate the for half. to how a me mix is understand past half on [indiscernible] when the the reported

Nick Jacoby

hey Nick. Yes, it's Michael,

got I of all think I that.

And environmental terms that the raise also side. impact will some line the for specific will get a the mentioned work couple that some improvement we alluded quiet. also of guidance margin we'll of so touched we new on we Your on say levers side, is But that get. we'll the environmental have yes, of segment things on -- touching little the we to we in XXXX the average

we far as the we as higher little think when than bit So figure, that the year-end be will you goes, XXXX. a environmental XXXX ended look segment at where

will the technical On end pretty the higher where full-year figure little a services expect in the maintenance XXXX that but bit and we do were than side, up started year we XXXX. XXXX consistent with

of a the that's guidance I to sort sort revenue of number. of the And how walked and help? so that margin gross Does through you out model profit if you mix that then get there,

Michael Feniger

as how as the seems the what well full-year, of with for Yes. significantly weighted like are QX, guys for guided kind back-end you what it And guiding think fourth I it's QX it quarter developed more think you margins for about we and QX? just guys how

Nick Jacoby

some issues QX Yes, specific certainly say on. would quarter had I that Scott touched

as is about on those see and again not not should fourth new fourth get. but of And the ramp excited but reasons certainly all QX quarter, layer definitely one you'll XXXX we that to the ramp of recurring. third get plus first full-year we're certainly in work be more So quarter start we a impact should better then you'll then be the it I the the you'll that in a jobs. think from see perspective margin than

Michael Feniger

through the profile? margin pipeline budgeting project, a particularly new cost I’m up talked of you these are -- -- for curious in is bigger just the how the in it released just work how they big, through flow the flow projects if P&L, if could you kind work is ends how schedule. if terms think usually how of impacting XXXX, ahead we guys guys then get the do projects should be And margin in getting margin through lower the that starting, to about it new as you're trying is more that think you just it projects are be coming we I'm beginning of you're and is beginning just feel there get, that that complex of about the that these the P&L, through bigger when projects or higher -- how

Scott Sewell

Scott. equal is project. this the margin will the Michael, Those course be throughout profiles Yes, of

projects as ramp a be we will there start However these out.

saying in Nick QX XXXX our QX of the plateau the you'll see margin then get in But project. ramp same started outlook. and and to essentially see a the you'll a profile the still get like benefit confidence we the from XXXX a be going full big So to be It's the duration to high ramp have why those project. reason was throughout a of will for the life again

Nick Jacoby

dollar Yes, margin consistent. pretty ramp,

Scott Sewell

Yes, you. correct. Thank

Michael Feniger

reimbursable, some negotiations, complex you these verbal was can like are Are kind seems it is these yes of that? projects us bigger fixed cycles? these different commitments feel of you how versus of cost type And scope. kind develops there help but some is prior pricing within Just pricing from with in these contracts on for it projects, the give a them, just more mentioned us

Scott Sewell

all expertise a absolute ability though which with across built to the us bid technology projects, of contract of have. spectrum talking mix excavation of of we is in conservatism. along was we've about, structure good that that we're Yes, And for raising the us Sure. our for the margin really bundle

Michael Feniger

is but be to cash is it. any or It us then equation that of the could is that information. just settlement, go is risk that's kind just on feels has a there that have your something probably or the guys not? QX mean And more the you with at us delayed I that something to Got something process through Or some inflow give the all. Brickhaven, lastly the give like that, at that will to just feel work

Scott Sewell

within as position to Yes, right of a the you be now Like the the through the purely and you're second mechanics before to those better not call. working to working on contract a you But contract we're procedural it. stated finished on through on the next we've exactly in a give we now. and the the update describe Riverbend issue it's kind call. quarter Duke of and that you me hopefully shifting with update right. I'll Brickhaven steps litigation take We'll just over It's ash from

Operator

from of the Schwartz comes Steve question next from line Analysis. Our First

is line Your open.

Steve Schwartz

cash for the respect question I guess flow first to with quarter.

just have operating to elements other capital, are dynamics the to were or out cash of You make note been one you is the at messy? these CIE what would in it back note if strictly your item it impact in item, line related Brickhaven flow, wondering kind particular there you working there that

Nick Jacoby

let talked CIE growth on me Brickhaven. component CIE quarter. that better was operating was The in of free of obviously flow the we told we say spite and had of we the the side, No. about you which million it in cash year-over-year more half in in we the were CIE remarks, Brickhaven $X -- than I'd dynamics up growth back

So if certainly the cash the out dynamic free pull you obviously gets flow quarter. in better that

quarter. good So there job working did with the a things on I capital we think pretty and other

Steve Schwartz

a to equipment. there for can Nick, I okay. in number that maintenance And between I'm least why growth that asking finance CapEx, at was distinction think, the then in think is good significant I'm you this number should you how talk in a went technology, I Yes, wondering something that’s looking And we That's when year? respect also there. Is element vendor at and for there with like just point just in XXXX to factor the XXXX. through

Nick Jacoby

question good who not Yes, and might the for listening those question. get

me just maybe it. restate Let

from does the in the flow underneath cash to rules some vendor some statement just to did flow purchase what not have flow equipment year we the that flow go where prior referencing. it you cash is under or we statement directly cash the finance they GAAP our which verbiage If statement sell in where he's

equipment lighter actually we purchase the it's you look spent. flow just if what to property in the at were So statement, of the cash than

the in could say not sort cash say flow we the statement. our but backdrop So it geography is talked would have of here for We only it what first that's the I'd where up change more any that perhaps on guidance quarter. of wise not of have we've year spend, the what I'd it shows change did about would of throughout

about thinking we're how that's that. So

Steve Schwartz

respect about of. not that contracts my in works with potential to noting last you. that Got is it, aware helpful. are okay. we some MPXXX, question That's those and I'm wondering got should you've anything just then there the contracts you Thank if be And just

like maybe volume, we and pay take or element, to a should know minimum anything pricing there? respect element with about Just exclusivity, or

Scott Sewell

we haven’t don't to the Steve, At this in something shared level, we contract necessarily specific terms. our past. that's speak

However dynamics the pricing company. very for and will be the favorable contract the

Operator

back I'll closing And call no turn to have the remarks. in we further presenters questions queue. for the

Scott Sewell

our very enthusiastic by remain Again and we rolling made our for growth progress prospects about our as us we pending the you. today. everybody bids initiatives. advancing technology Thank out Great, in thank demonstrated joining

updating We quarter over to this And you I guys on front really several second on forward have call. positive next news the look further months. expect to the

So in news very definitely months. positive hopefully we'll here we'll couple see you of on road next some have and of the

So time thank your again today. you for

Operator

conference call. concludes today's This

now may You disconnect.