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Charah Solutions (CHRA)

Participants
Scott Sewell President, Chief Executive Officer
Roger Shannon Chief Financial Officer, Treasurer
Tony Semak Head of Investor Relations
Toni Kaplan Morgan Stanley
Michael Hoffman Stifel
Michael Feniger Bank of America
Call transcript
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Operator

Good morning ladies and gentlemen, and welcome to the Charah Solutions Inc., Fourth Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]

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 everyone for us joining Good thank today. morning you remarks participation We forward quarter prepared questions. in XXXX your to answering financial our look fourth and our appreciate your call results sharing and conference

the you hope prepared as release issued section if or well supplemental press Investor not, as We review can remarks find closed, presentation the we have the chance yesterday had website to may you our the our the at market you ir.charah.com. after on follow but during a press of investor release www.charah.com

Scott Joining Roger me today Sewell, and on President Financial Chief Chief our Treasurer. and call Officer; are Executive Officer and Shannon,

Following and their customary the dialogue we question-and-answer conduct continue prepared session as remarks will the needed.

you include statements Charah risks statements Before These and results different releases from our that that the are those we meaning begin statements be could Act. materially to conference cause we forward-looking be remarks Securities in Solutions I’d earnings within to our the Private forward-looking calls. disclosed subject believe of remind to Reform that to uncertainties regarding Litigation and actual like

filings reports Those the Commission, our that among other our described and Form have our Securities annual release, on XX-K. quarterly Form include on as XX-Q as including reports in we our earnings Exchange well risks in matters with and

forward-looking Friday XXXX We We expect statements. to file disclaim update our the year March XX. this these obligation Form December XX, XX-K ended for any to

you will us refer on release, applicable and we for non-GAAP supplemental call the earnings thank GAAP provide today. website. conference this our to Again, joining our measures. in During to financial We measures reconciliations presentation

Scott. and Scott like to I’d turn Now, to call over Sewell, President our CEO. the

Scott Sewell

overview again our I’ll and It's full and us and year XXXX. good performance providing have also on call of and fourth an look update you beyond. be key quarter morning XXXX over and our I'm business outlook today Thank of developments earnings to our back speaking join great provide with for I the to you, an Tony, everyone. and you happy for

fourth gaining business evidenced our our that report we're strategic quarter to winning positive new pleased momentum the results I'm and executing plan. on by

important third regarding achieved our and placement. financial to recent and credit liquidity made successful preferred the announcement the also milestones bolstering we amendment equity position agreement We in our private through

With and our high future customer our growth strengthened investment our financial reliable of dynamics, of variable base, regulatory I XX% position, about from excited industry developing utilities are regulated the leadership which Charah and team and opportunities our are grade quality Solutions.

our in into actions. current results activities transition around then morning developments, a and This quarter including our business financial legislative call opportunities with on financial a will update financing provide a our review and briefly review I recent I'll an guidance. performance and our for the highlight to XXXX of our and significant pipeline I'll deeper discussion Roger regulatory the and dive during our accomplishments,

personnel provide I'll on employees Solutions want taken first, actions an the discuss overview I and we by responders, pandemic. this consequences others affected want I those the first sincere to to condolences and virus. behalf But the pandemic. to of express thank the of and my of our working best to have are all first medical Charah COVID-XX safety address to wishes also of protect the tirelessly who all

an safety component integral Charah and At a value commitment our Solutions to our core of is culture.

the commitment continues the everything other Charah’s of on States ahead our business remains highest and expand will employees around stakeholders always our leadership That team safety best of safety. to else. and and pause to and the commitment putting unwavering disease compel world, safety and our As me make within we're and an to sure was of interests customers. employees our priority the built coronavirus United

and regulated our quickly the highly and mission business whom to initiate power contingency customers immediate taken have to must for customers critical made To provide imperative of continuity we our nature that of end, business. customers, plans of people, series operations, continue our to country. are majority to to operating The a our vast action ensure our it protect the

manage have and We communication not COVID-XX. any are employees any possible have through service this our tested not had we To-date time implemented of positive for organization we interruptions work as measures with across to our customers. real maintaining we and entire have and time, had stoppages who have further

health restrict better travel have of To we policies implemented mandatory and and travel. non-essential our people, the standard for ensure safety that raised the approval

detailed instituted team a cancelled meetings, communicated non-essential our employees. also or healthy all of and Work-at-Home for our policy We guidance postpone in-person for behaviors

quickly ability has always to Charah successful. Our adapt made

well and for office that support exceptionally location with adapted challenges. during prepared teams the field and remote challenging changes future working-from-home including backup technology these have of resources, so this we well increased period, communications, information are and procedures Our

in to have job not of outbreak a our the result are activity respect customers. on business we sites communication existing and in slowdown constant With our as observed any COVID-XX with operations, utility

keeping We with by them and risk health partner and all shared their in to abiding have hygiene with aligning safe commitment policies their employees with a health mitigation and procedures.

pandemic, followed, XXXX domestic the highlight that that and financial Great pipeline global to global activities and the next of business experience the continued projects any our XX company not of our in a it crisis Recession over severe backdrop years. economic is important slow the slowdown and Amidst growth due during did potential or coronavirus to to

Charah of operate. business mission on closely our linked be that is work the pace can experience XX% over regulated the activity to our regulatory a utilities, fact there course, investment-grade will for at critical Of same performed company growth, environmental trends of and rely more services to assurance that is pace normal continued historically Solutions we no of but our

a our was year disappointing. and for XXXX transition were Solutions results Charah

growth in optimistic million XXXX. award However for about of based forward on new record and we going XXXX our in business opportunities are awards our $XXX

exceeded believe proposition this the as increased to the in regularity United federal of We our awards plus that by XXX%. our and beyond remediation range We the an XXXX opportunities more and surface offer reflects to our contract through impoundment of our the we state reflects our growth utility we stated compelling in release, regulatory-mandated acceleration believe into ability expanding value As in XXXX response of value services. deliver address customers, awards ash well requirements by X,XXX as ash as press new new in environmental won the for full the customers closures States. this XXXX

substitute to infrastructure increase as will spend expand We total capabilities that through and future we byproducts demand for sales expect cement. continue multi-source initiatives fly ash develop a and our platform, our for

the outage and nuclear operation, business. remains mission maintenance about business our services. optimistic steady predictable are performance leading source continued EBITDA revenue non-discretionary nuclear for Through us. we we a our of a solid critical, This maintenance of Finally, are and provider fossil power ally of

that and flow awards, focus increased our reductions recent our the liquidity coupled amendment through improvement capital strengthens flexibility agreement and momentum raise, credit our believe compete ability winning on and by opportunities. with provided expanding our in market on financial our cash expense increased We and successful capitalize to

growing remediating geographic States. resulting friendly ash recycling United the expanding our base the our timing U.S. of awards to related customized solutions Though increases recent economy near coronavirus and in uncertainties and reach is may revenues customer environmentally project is or as byproducts and the impact to the our motivation affect across on term, the customer for

represents year Before turning we success the financial significant winning of touch quarter mentioned results, a Thus our $XXX to accomplishments new over that of to increase achieved the several growth our in XXX% I previously, of on strategy. XXXX. want record an demonstrates XXXX This business during awards. as of million notably

won launch customer with technology of Contract and the are our The for the advanced and this in year. anticipate of broadened diversification XXXX geographic signed MPXXX base ash our contracts reach. in utilities stages increased contracts with we negotiations our beneficiation

on deliver optimize and awards to continue performance, our we our which employees recognitions our objectives, our demonstrates and continue We customers. commitment and receive to to safety our our business business excellent for further and

decrease three XX.X% XXXX in of reported $XXX.X XXXX. for fourth XXXX Now, three turning results, was our a or million financial $XX.X revenue ended in compared December revenue XX, from December ended to $XXX.X The XX, quarter in the due months million, the revenues in same months that the XXXX. not million in new is replaced completion and by awards the with of maintenance last our higher segment was in segment. XXXX solutions services year offset environmental projects to our quarter partially This to technical was decrease decline

million profit our Gross XXXX million to million margin the months due primarily X.X% to environmental December ended three lower both ago, year decreased and and segment. XX.X% XX, the or for in to gross three $X.X December revenues a XXXX XX.X% $XX.X XX, from declined from solutions months $XX.X ended

our reset with secured covenants the delayed that to things mandatory the capacity and lender our an earlier loan. waved increased at this the our draw liquidity, back reached term other balance financial company's Looking credit we of agreement month loan borrowing and maturity facility term under amend our sheet agreement of repayment, among a with senior group

credit A we transaction and Series became placement. We for XXXX preferred million amendment also of approximately private closed the effective. a XX,XXX XX, On Preferred offering Stock sell agreement shares $XX.X our to the stock in closed March on

agreement remarks. Roger his increased details to our us deepened liquidity will and solutions. our additional significantly confidence financial customized, provide prepared flexibility User customers’ company's environmental the in and deliver profile in

this at and the of Next, probably of in ash January On surface year. close federal Community X, the Duke important I’ll Department the beginning Carolina. that outlined plan coal agreement developments announced Environmental and impoundments a like Energy to on provide Quality an nine levels an North Carolina North with update the remaining Groups state with regulatory to state XXXX

of to of this occur of billion, approximately term total This In spent near start in estimated, $X expected on is $X methods the this close in Duke to already be timing. approximately undiscounted to billion closures with is an that and Performance over all to years. Energy and the Carolinas closure agreement agreement, completion the clarity expected work XXXX. announced provides basins billion cost with these the conjunction most through ash XX to next primarily $X.X

Combustion at receive these approval. minimum program rules the EPA the is currently making had CCR a In of the Georgia’s state bill the its applied regulatory of the federal Georgia Georgia the approved Coal state intent to addressing the receive Georgia other CCR the EPA's prove meets developments requirements To state in a second There and such that state or program, rules level, legislature. circulating approval Residual as criteria. to to has this

announced At federal month last provisions final for the were electric changes generation requirements. to Among the proposed level, coal liner proposal the modify for some stabilizing EPA its regulations companies. ash

levels meet XX% of than basins more coal of logical the EPA groundwater there the the ponds given exemption requirements. would be unsafe U.S. EPA stated to However, in few contaminants. able likely were This determined monitored exhibit is to ash

require Furthermore, they an utilities an their in require alternative waste already regulations on for well liner August pond before can coal empowerment disposal to can XXXX, make which will a owner by the meet requirements. an submitting to seize pond unlined ash an demonstrate decision approval

increases and frame. exemptions Solutions, In completes these application our of opportunities will only utility stringent entire if collective in view, proposals process a time the Charah very remediation operator the under limited impact and allowed for review requirements potentially a be

In beyond. contract our anticipate opportunities. and positioning cash, We enhance in of will awards support to in and remain growth value, XXXX balance preserve positive market to expected term ourselves take long expanding closing, to committed in even advantage greater taking while contribute actions and results we the sheet XXXX

utility growth Importantly, potential we with years sustainability aligned remediation partners, come. with to which our initiatives many Charah environmental are for significant Solutions provide closely should and

turn With current market expectations I'll detail environment. it in our more XXXX provide that, will Roger, and outlook Roger. our who discuss and over more the to clarity on for

Roger Shannon

update our liquidity Thanks and sheet, continue review provide the XXXX balance Scott. outlook. with I'll and on an our of financial results

effective. begin recently Series and an our we Last issuance amendment I proceeds a preferred A agreement secured review, announced agreement amendment credit week credit to our stock from our stock to financial provide to I'd Before $XX.X private Preferred our placement. received senior the became and regarding our like the of update million

to terms enhancement of $XX mandatory the existing eliminating flexibility, combination of by financial to the delay term through covenants from maximum XX the by a for available the amount company's XXXX, the amount so maturity by the this million the primarily on $XX loan, provides events removing borrowed of and under March facility of financial be these prepayment previously liquidity cap to The the meaningful the the by draw million. that and modifying increases $XX due facility, debt million principal

the are equity Solutions demonstrate on We ability our commitment from the from and important and preferred the in These support appreciate ability strategic and credit and capitalize business to in strengthen we plan deliver partners offering Charah our transactions new The share shareholder. and enhancing received opportunities execute an on to our step majority the our sheet. promises. amendment our proceeds balance we confidence agreement banking on

Now, Revenue for the fourth or services of the XXXX, during $XXX.X offerings. first turning in remediation the business, year decreased to quarter our revenue and driven offset from primarily from an million, by financial services XX.X% ago offerings, partially including completion net of within the the from million our project byproduct decrease project Brickhaven increase results. completions overall quarter sales our fosse a revenue period compliance $XX.X and to by in our

services in by compliance project the partially or fossil increases business, year year projects offset decrease fewer our XX.X% within value full from period the $XXX.X remediation in won driven million, to These a our and from $XXX.X the during by decreased and and primarily completions impacts ago of For XXXX, in million were by byproduct nuclear our services XXXX, year. offering. outages dollar sales revenue the revenue

year nuclear refueling by X% approximately Our as top a the during revenue in fall guidance our XXXX additional of outages. provided end work exceeded the November of result full

million services profit same from technical our last X.X% These our a during million completions partially associated an margin maintenance decreased gross by in increase $XX.X to fossil of generate offset resulting within services or XX.X% Gross were with $X.X gross in project our the margin gross gross segment, offerings from fourth while profit environmental solution by period mix to higher primarily that segment, quarter, XX.X% declined by driven and declines the year. in margin. and

quarter with gross credit discussed amendments net general to previously primarily loss to in ago increase administrative We of The to in and transaction reported as fourth due a million $X.X $XX.X to GAAP lower of compared million our the was associated net income the loss period. for expenses profit year an attributable expenses facilities.

lower we months G&A had addition, In the three during December expenses non-cash ended

connection XX, the termination in with contract. the with of amortization XXXX the associated liability option deemed the Brickhaven purchase of

Finally, income against partially decrease months balances. to valuation in reporting due to were tax in tax three our the in ended These XX, decline deferred $XX.X increased million by of offset net XXXX, our primarily expense allowance debt a December the assets. interest during expense a due increases quarter

primarily the of QX the $XX.X adjusted adjusted of million ago million profit, to but down quarter. year gross $X lower EBITDA of $X.X ahead was EBITDA from million last period, due reported

the our EBITDA we obligation. in primarily in XXXX $X.X due year will ownership in provided Full guidance of missed the the of low of end expect of a delay a the and that asset owned property We reversal the sale associated of November XXXX. portion related to retirement transfer certain to million, anticipated the party property third by a still

the and year approximately requirements compliance equipment during full financing efficiency lease CapEx period, XXXX in quarter million. to our the higher of of related in and $X.X an ago million services were for in increase was from the the as was quarter maintenance $X.X Capital primarily a result down Capital remediation in million, primarily expended business. fourth $XX.X and expenditures growth year activity.

mentioned remediation results by I'll In within and our $XX.X reporting our million the solutions resulting driven segment, component, at project to Now, the previously XXXX, our services of level. discuss the quarter revenue or project deemed the environmental primarily fourth XX.X% completions from decreased including million segment from $XX.X termination. compliance Brookhaven

component. margin for fourth $X.X due XX.X% and from project compared XXXX of decreased or three million to Gross XX, for compliance to the slightly completions three million services December million ended December as quarter profit Gross XX.X% to months declined our ended in with to the remediation the XXXX. $X.X XXXX XX.X% months $XX XX,

services to our services by our the million In December offset XXXX. offerings, outages. fossil X.X% maintenance in growth XX, or primarily million and to ended increased to technical was segment, The compared $XXX.X partially $X.X revenue as three for attributable fewer million months nuclear $XXX.X increase

completed XX outages ago year compared full outages we nuclear the XXXX the XX year to For during period.

to to outages revenue year. As services fewer compared expected, nuclear as last lower led

services of $X.X our an or offers. fossil services the profit fossil increased a from technical profit from $X.X to in again increase by gross of as within and gross XX.X% and result increased margins associated mix million, primarily to nuclear approximately Maintenance gross million generate X.X% services X.X%, offerings and higher Maintenance with a mix services services driven technical of that margin. the gross

of and a gross at million had from $XXX.X XXXX debt which year-end Turning the XX, our December sheet quarter approximately balance prior an liquidity, million, is consolidated $XX.X the million decrease levels. approximately we and increase to $X.X of of from XXXX

during The won previous due increase to with quarter increases in period the a is $XX business from million during as the the of nuclear decrease debt the in launch period. fall Brookhaven total from third outage payment. debt new associated deemed the fourth the in quarter The to $XX proceeds during receipt total capital, was to compared end and in primarily the the debt million of prior the year the following termination quarter, repayment primarily working due

was $XX of third from end end the XXXX. and approximately million at of year-end of fourth at as the the $XX.X quarter $XX.X XXXX, of liquidity Our down million from million down quarter, the

partially in their proceeds million capital additional work. outage draw offering March capacity from XX, XXXX. XXXX $XX million the infusion a has improved in result at $XX position This was as received loan of working stock delayed the improvement end from term $XX resulting million from the the capital the offset spring increases facility, liquidity March allied to large current on Our borrowing liquidity million preferred $XX of under XX, and of by

reverse. capital the that improve in in Additional ramp-up maintenance liquidity began quarter associated nuclear schedule outage seasonal services with significantly the the first should in working needs April;

guidance. to diversified and XX% operations, significant for Next current uncertainty. any we COVID-XX pandemic our a business critical uncertainty to of mission potential to of created I’ll must regulated investment are the significant the our the our our critical We have to services due level utilities. continue base future mission provide disruptions the customers currently surrounding are of nature a not resulting power higher XXXX disruptions related beyond control, uncertainties. coronavirus grade of Though produce through business address whom customers, They seeing

contracts. For issuing backlog this and guidance executed XXXX booked on of based this at are solely reason business we time our

expect current EBITDA million expectations flow Our specifically current We $XX existing we million; worsening of This our for be as and customer our material of XXXX of Any to absences the is and significant contracts net and expect no pandemic free adjusted COVID-XX to on follows: guidance could $XX is including no of material COVID-XX work no affect based loss materially outlook. million; XXXX of year. but revenue the government and positive $XXX cash limited worsening mandated stoppages, the of pandemic, quarantines. not employee no guidance

turn With that, over the I'll call to Scott. back

Scott Sewell

and enhanced Thanks revenue, a positive success, demonstrate our results anticipate the from winning success in end. EBITDA and XXXX our the We XXXX year been in new have transition since a meaningful was flexibility year our Roger. in contributions significantly liquidity business positive and financial gaining pace. to record cash quarter momentum our at this we're and flow fourth from free

nature and any quality, extremely business an position. of the believe suite the confidence compliance to record exceptional a our and services to our of our customers’ operations. full our observed our of with have of to we meet Our mission remain their mission safety result strong not grown disruptions power we to We partner for experience, specialized due generation customers financial critical as has but critical significant needs in choice enhanced domain bring the ability industry

we continue very are beyond and aware will disruptions of the macroeconomic the our to closely. control monitor We situation potential

success. to prepared this of This for We ability that the are our to safe, growing continuity We committed several current predicated future protect believe uncertain staff to people our period. execute customers’ factors is our during and well business. remain our keeping to contribute service upon needs pandemic our during and we position ensure ourselves and the addressing clients to

large an of enhanced factors financial XX% critical that a liquidity These is grade predictable, services, base an reactor and routine on ponds be and base recycling existing relied that current of legacy and needs. infrastructure position, disposal and consisting and ash maintenance component very plant investment critical increasingly a environmental stewardship utilities are that future regulated include, operators waste installed remediation, nuclear customer non-discretionary, mission specialized focused on compliance, the that to coal to regulatory byproducts require power continues

we to opportunities, As we debt making to pursue operating our market levels our increase our improve further reduce and potential. expanding efficiency, are our pipeline of committed adjustments

again Q&A the and with And that operator, you Thank participation. let's session. interest your for begin

Operator

[Operator from Toni Certainly. Instructions] first Morgan Stanley. Our question from comes Kaplan

ahead. line is open. Your go Please

Toni Kaplan

start scenarios out? disruptions It sounds really any how us that new to any you. like Thank the maybe yet, seeing others? could be areas it the not of – than significant more Are you're you new of recent, date but could from exposed COVID-XX there date recently with could basically wins? this Could of help business start Thank. play disruption wins the new impact of like

Scott Sewell

Sure. And Good you're morning Tony. right.

our Charah on to critical know have seen stoppages we mission has utilities not been these work any built You to-date. and services

day, very Our been going work resilient to have teams to teams home. our from working adapting are in office every

team. as for So everything planned gone to-date our has

we chose performing this upside you. additional downside, and work strong on in didn’t are time on services why So transparent work at based and for that today very or there just also speculate we any us – again, weren’t to we – want right. so to there with that's really demand our We our not very existing guidance give hand,

any see regard, of technical our asset outages at of to know business are management nature work juncture. maintenance our critical and So about you if don't services, outage of with our that Same today. and our performing work. stopping this that all think We you teams know legacy you

are and we their our day so plants the critical that regard. every guys know tasks, power single going You to haven't seen doing in anything

we If byproduct our some we there be slowdown business. may that our sales slows ash of we're a is area on those component something do sales potentially; that eye one the in keeping the construction is that that say however, the would have haven't on. down, I but seen yet, it of eye our

Toni Kaplan

new ‘XX you. mentioned of this this awards XXX the quarter XXX to and went XXXX. Is of awards for the quarter in And the from $XXX as last would million I a raised previously Thank for you new and you new your what's guess anticipating were COVID-XX you higher have XXXX level if than wins the new not guidance Thank. for driving wins? of and

Scott Sewell

Sure.

know were XXXX that this In right work. we You the else is exactly signed pace are in everything middle actually XXXX. tracking We secure going now, we how expecting week. is an – contract want it this track. to to large on still of extremely able we

are excited excited teams we're on but So still again the and adjusted hard that, specifically our guidance fact way we right got in one if with other, or we've what the out would've the there, now. about sure working field not about that going

out and any committed a there's reading A point headlines. of are pulling continue different now. the will of new I of to throughout are factors that we guidance industry the haven't work stop year in at and companies say that's this going mean seen lot lot we to you're in time. gain But this yet the trends course right to

Roger Shannon

the that within that we is new this had year. I that add historically would typically earnings within contribute occur Roger. to we just that Tony, awards would have year –

at include that our XXXX not So guidance, in have as to time we in this pointed chosen out outlook. our we

with to we work much know have right we now. we are what with certainty as as know You trying

that So know timing certainly affect you could of new possible is the it disruption very awards. the

$XXX As you have know that secured million to-date. the we

awards what we'll as might new on the relates we tend an progresses time, year start but little As a of contracts guidance the any have to with know of these timing and signed large those know how run our period later over point just basing as we're or the again said, you see have to that, number have. a that at of projects to impact it and effect Scott in booked extended this you on

Toni Kaplan

guys. Thanks

Operator

question Stifel. next from from Hoffman comes Our Michael

Your line is open.

Michael Hoffman

XXX? and all and Thank questions and hear taking mix [ph], understand you for what glad with ES your looks I'm much like? families you in Could the very that it we split order. the us between employees to so EMT&S just that good are help today Just

Scott Sewell

morning well, Michael. Hopefully as but that is… well Hey, yeah doing good you're split

Michael Hoffman

Yeah, thank you.

Scott Sewell

XX-XX the point. M&TS at roughly on side splits That this

Michael Hoffman

– XX MCS way and following XX that I’m just not or which currently.

Scott Sewell

ES. M&TS, Sorry Michael. XX% XX%

Michael Hoffman

stable way to day-to-day about think at with you level a stable bit the be for of byproducts work is borrowing. those that in we and pieces. on and do some are variability – to on think are the be then the underlying little where would contract about is volume maintenance utilities that's where – and the Construction way conversion, this would is maybe relatively Okay, their of we modest organic, inside clear probably remediation backlog two price and it

Scott Sewell

the did little tail Talk] I believe bit your Roger, unless you… end following process on having there, so trouble thought a I was Michael. of [Cross

Roger Shannon

that more compliance I solutions be services Yeah, projects. it environmental along where would and the agree would remediation

what that reflects our number on are we're over of think we good in those with pretty the course the a the to – I occur outages XXXX know see and you happening know of handle outages have you guidance we nuclear set year.

XX of heavier continues. stages into this year. are the to approaching outages outage The outages, right that middle season, kind so or The than in there of – that going now work that spring season the be we're the and outage is fall getting

compliance you uncertainty and where services remediation is think around But there projects. there know more is the – where I is

know the comments At that customers driving to aside this you of as release, in guide about you on at a in expectations, more it growth or about in within expectations going you in – his setting know greatest that, to approach so point. the potential and address we've the of our space. taken we've uncertainty see utility that of factor to by talked area as conservative that know the time area pertains virus, coronavirus, impacts actions talked know that regulations is our the we’re that the more our is that same impact we've You how that in to expect you Scott know we

Michael Hoffman

the Okay, look and is I of growth the of the asked probably nuclear of all and left apologize, fossil clumsy. business is it then two byproducts I I level some and would sheer tied outages variability modest If took say I it the have modest that – year-over-year some at there's growth can segments, remediation. is have level number to and will and

Scott Sewell

Yes, exactly Michael. that's right

Michael Hoffman

it, I’m sorry. just And alright. got Okay, then –

Scott Sewell

you no, sorry was in No, following earlier saying your question. I not for

Michael Hoffman

asked some quarter was I that no, I no, already I make is $XXX right. want million all that it that closed No, following or this in The incremental? clumsy. that to sure include the XXX, was does just first

Scott Sewell

Yeah, XXX, right asking that's that – over you're XXX% you sorry, good the the book-to-work of guidance, work no. on year, does our Oh know not as so it know it's up I so – course question. The of I our and you mean ramp now thought

Michael Hoffman

No, no, backlog. the backlog, the

Scott Sewell

think picked does QX. so not our Yeah, of guidance, up XXX include already our in if the we you in we XXX XXX, XXXX, that if here about XXX. for that new does got – a that of revenue The include portion it awards it we've

Michael Hoffman

Right.

current your say number that were is today, So if be? what you would backlog to

Roger Shannon

haven't tail contracts, we our out long consider, XXXX that know our for XXXX contracts that and work something will here into that us. that backlog that's is know hand term and you I so very say see but also strong something obviously can on our is in we XXXX you of shared know in majority You publicly, XXXX or

Michael Hoffman

bigger I you you the did am that number won some it's XXX, if give incorrect added more because Okay, you’ve stock? than – a

Scott Sewell

than two lower combined. much of the its those that numbers Without Absolutely! combination

Michael Hoffman

Right, okay.

Roger Shannon

in were that, in that can large talked Michael remediation results, you in out; awards more these new as expectations our you know pushed you presentation became how know that is XXXX you complex, graph decrease XXXX requirements the XXXX keep and to the in that and know saw if got a projects rolling challenges rate And primarily so. for XXXX. past, results we dipped particularly not we've that that relief of off all in as in the – the shows and developed know were about the was you and provided mind, XXXX We sorry, you just project of replaced

of XXXX those You started know in to we coming. more see so

the opportunity about, As and Scott XXXX across forward. talked we for that growing see

our So you in expected we’ve way our the know backlog awards to be environmental and we’ve growth talked new solutions. about in

to beyond performed won our of that and just backlog in on, awards in you what this year, guidance for well performed in there is know will so that to know coming into of of – forecast that XXXX you is XXXX we've the our the of XXXX will new those be that just of in any in done we The know you portion then guidance what, that believe far previous that to but our again that So is recap was reiterate the that and carries XXX XXXX. there certainly guidance, have extent year, you know so. is we to our that, the XXX backlog be extent this that under – are

Michael Hoffman

Got it, okay.

Roger Shannon

have XXXX years we trend backlog ‘XX. reestablished backlog that move in cutting you even – the that we grow provided that as saw know the to to decrease bolstered that past ’XX and in backlog will we – further and be assuming In continues, we saw again – expect

Michael Hoffman

Fair enough.

that backlog opportunity restarting what’s far you process know Georgia, activity are as that to you So of seeing is do your can reignited? this the relief getting rate saying being bidding approval creates activity positive case How there's its starting wave Georgia that though visibility with you get to What’s you back work. some reaching been or news, state, as of for a agreement the that on of in the what the even that state and that coming of now – the start things that? end, piece and and around level PSC win a

Scott Sewell

exactly Michael, Yeah right. you're

we've Our activity ever it. is seen than stronger

bid So I even largest our think in exact working and through know hand and we – now, – that award backlog our talked number, in we you really and XXXX the to very right there that's for opportunities haven't them see in know in know are know are significant the and things on teams here XXXX you XXXX, start the teams now about given near our really there process DD that awards tipping really it's on. for it you the and right awarded -- account that been to-date new multiple see you in and point executing side largest in you seen ever know largest and are the trajectory as planning growth shift, as NCS we our right now roof in that that hoping our though on activity is those term our of in out in we've size we've we're beyond, work

time that the seeing activity. now's So we're

Michael Hoffman

is of start reviewed you going win of could talk today, to least couple you you you're being us it Okay, should and total at the win activity to of isn't a total of win so it, then piece. that this dollars, at backlog Is fair value and some give but you – get a understand share need that just win enough I of it dollar some this, can't scope. bids so... it, share wise, have this What's you so amount we or a is billion you and what that to five going should all or four piece you're about

Roger Shannon

You our talk of We're number billion business to with we've know and kind $X and know now, we’ve think giving in – sharing and in to it's started into activity. last and some everybody Michael guidance best you that in process right process and much that previously think teams line is with – I insight year I development say the our the that and we’re some BD given way roughly

XX – a on call billion. us for another it proposal what for roughly bit available to is they the see in XX $XX months provide to in next coming a months the out or

right work piece. hoping lot are you and is there the mean we out I there coronavirus So through know we happening that now, just

everybody in Here our then working we we continues on situation focus get now. the work of this to kind of new as out stay right teams bolstering are We on healthy. keeping and

Michael Hoffman

that or question that that and performance challenges I can getting on right? bonding a remove standpoint prior had the an then you also But maybe any work. does now all that recapitalization, from to for conservative you and do all this be industry, liquidity issue, that last some and so with this concerns. me. fixed go The get Okay, bonds shouldn't so mean I in place,

Roger Shannon

in mean I through of that's why what our supported we've we've why it's and support our this for banks strength why the and and us business objective. our our I as the done us as show definitely through that's Yeah, the a out that's our think and huge done, helpful that's both this, why well customers it's agencies bonding there, the – capital that's to belief sign

Michael Hoffman

Terrific! healthy. the safe questions, and Thanks for everybody taking and I stays hope again,

Scott Sewell

Yeah, you too.

Operator

from Michael next Feniger America. comes Your Bank of from question

line Your open. is

Michael Feniger

could just Good Hey have revenues know you EBITDA or guys, Also questions. you you was just X%. know guidance curious for it’s everyone. my doubling. think if for us, million obviously morning $XX thanks taking or up I you up, help just X% I the

just – of out You guys you buckets buckets for can more just start the remediation comfortable for three really up and finishing way improvement, those provide it gets savings, you margin poor kind with just flush of some can some the Any of as driving mix us that. that that cost us, some contacts.

Scott Sewell

Sure.

those good movers. very key buckets a the did you reciting job of the three and think there, are really I

as for absolutely about in us, year fronts. many we’ve talked transition was So before, ‘XX a

lot and so a down, that component. you was SG&A of So, our a teams, the of optimization driving know deliver way we key

that in that mirror performance an lot the development the compliance didn't end, large see in project that's structural standpoint really coming the specific Carolina, services to with us, we opportunities you're to remediation that another in XXXX. a to about how that the increased in in ’XX, we business fell project issues invested But talked to from one-time a all had We've North discrete view fill know with events then of for and that couple that come a fruition. able you the rear and

Michael Feniger

you last up you're help really there to be And these guess way mean us strong I'm then Got for XXXX. of new any is, what kind start had guys going could I and it! you some year in just, positive awards. flow wondering year free I mentioned that, this I as you Is quantify you mean of projects, cash

Ag As working through in these go you a these assuming as started projects projects, ramp. sense we capital that or or XXXX

Scott Sewell

structure always our contracts we probably our you to little There’s as we if and objective in with term but want getting is new work drag, add flow forward to positive our bit again of anything cash make moved them customers. we short did that. a there's to a our as awards, Roger, as

Roger Shannon

you I about contract at on was I turn $XX balance Yeah, I – year-end, if sheet, mean cash. there will at that mean assets our That think to look million.

it. the fourth did of started year project course that the the a have up Over build some in had quarter working that we capital to

immediately to know on then some services and out associated, to course over capital about revenue side, the the you will kind in that the that you comments end revenue the year push by April, beat our kind And of like collection at year very know you begin working large was of kind that, the cycle timeframe. past this the that technical you in of that from season. with and over know our the of end, or build whether unwind that end maintenance year, had the to thinking know happening now mention But offset the year in unwind we quickly the outage May increase the the of spring of

spring see you but what we than of you’ll see that as in it's really flow, we saw but XXXX. given of free we cash out thinking significantly it better So QX number large in in outage the haven’t – season, a work terms

Michael Feniger

that we ago. guys big know look just up had these of years a awards, the margins big few Is scope, you XXXX was in you of is is project on awards or know a is environment profitability the getting this more look of $XXX we And competitive we I'm good the trying I just at back these on larger mix you a awards, you wondering better if competitive? awards, If more a that year. these year, XXX to before market. how this look back again, is the I awards is awards, we get another XXXX, million the complex, over Like environment more that a let’s compare was how and XXXX, like when after even if spoke know well. the it years are say about you on mean the profitability

Scott Sewell

Hey Michael, good question.

Before I'm flow that cash Roger for about talk let to I answer second. going a

Roger Shannon

I just one say thing. wanted to

the in setting I Just aside about flow payment. was operations about and tremendous to I you’re kind referring profess going Obviously you that free cash last to versus just payment termination you but need of amount year created in aside. frame that setting to know normal know my that year, deemed kind XXXX, last thinking of flow comment specifically this – cash a of

want to So that clear. sure make I was

Michael Feniger

Understood.

Scott Sewell

so of back But of able excited on $XXX one work, you were inside to that’s we those, our customers I’m contract the know new customer or the for and that move about it things huge one that base mix wouldn't million two and really us really to question and margins diversify two or one customer our large as positive around or we projects, forward. center a

are in closely. ‘XX to environment, ‘XX, they were and that we track see today, in where that we a you similar very the know ‘XX And and margins competitive

‘XX have good a kind normal you that were had of are. very they of but them, in we some few margins in pretty nature where projects in are course won one-off being have outside in that say projects there good, a on business. and what of I intelligence know We that did the margins the were will

for the So you we've the have couple business, know about seen think of years. if been we normal exactly it margins last of where course

Michael Feniger

Thanks everyone.

Scott Sewell

you. Thank

Operator

of from Hoffman And comes question Michael your next Stifel.

Your open. line is

Michael Hoffman

Thanks.

Just capital and free an is of A for what is What two, for XXXX? cash definition flow follow-up. quick for your questions, spending and with Two calculation B. one one

Scott Sewell

I to capital big. Yes, just of that spending, caveat so want a on kind

to we decide know cash just We out. course flow our start-up the the certainly You are how on know the on reduce and working ways over of current environment, we're know financing, will the affected. you financings have of year and different shepherd you it do these how so projects based the of depend

to the or number. available still operating doesn't do are us we can advantages fall into give capital eligible some which financing, obviously So rates and that lease type

less be and The with making from expect wildcard on the a are those. and So still of we lower is be to perspective bit maybe technology projects, way progress would financed maintenance XXXX a on we would around those kind and XXXX, a we is par certainly be wildcard it flow would operating But CapEx. just flow, it less. perspective of the cash to of little To in that. that bit expect a be from cash timing a definition maintenance free our

Michael Hoffman

So from spending. operation in capital that’s flow the statement, cash all

Scott Sewell

Yes.

Michael Hoffman

this me, What just lots Yeah, And your remind could data. in whole maintenance was working then XXXX? of you you pieces of remote know okay. thing, know missing spending

Scott Sewell

Roughly million. $XX

Michael Hoffman

going and of be or Okay, that to number. do set, planned is heard byproducts the if what up I about to you're changes then is that any you then anything a plus that the and minus tad

Scott Sewell

growth. a give precise XXXX The know you so, you I’ll $X.X number. maintenance Yeah and maintenance million was for

Michael Hoffman

Okay, you. cool. Thank

Scott Sewell

Thanks Michael.

Operator

further time. at the for call Scott turn back Sewell I’d remarks. are over closing There questions this to no

Scott Sewell

we look as where here. but right safe on thoughts this work you somewhere to in very in your taking the successes that and our now world, and you we future guys and in there’s value we're about our for go forward this, everybody’s communicating really happened families so in now everyone right is and call. Thank from know time all and the everything to business are we attention have excited I out everyone lot and to I business doing all business the thanks are yourselves today a again, where now. interest the interest elsewhere, hope right through that do your

you much. thank So, very

Operator

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

disconnect. You now may