Charah Solutions (CHRA)

Steve Brehm Vice President, Legal Affairs & Corporate Secretary
Scott Sewell President & Chief Executive Officer
Roger Shannon Chief Financial Officer & Treasurer
Michael Hoffman Stifel
Toni Kaplan Morgan Stanley
Michael Feniger Bank of America
Call transcript
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Good morning, ladies and gentlemen, and welcome to Charah Solutions' First Quarter 2020 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. [Operator Instructions]

I would now like to hand the conference over to Steve Brehm, VP, Legal Affairs and Corporate Secretary for Charah Solutions. ahead. go Please

Steve Brehm

our Good to us operator. prepared first and you you've to thank XXXX questions. answering Thank hope We We morning appreciate joining that sharing the forward you the press look our release today. review the yesterday call a on the remarks your issued for follow and find we earnings remarks presentation your after market may chance well Section can website you, as had and supplemental everyone, prepared Investors press release participation closed. investor quarter you in If ir.charah.com. of not, www.charah.com at the as during our or

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

customary remarks, prepared we session. the conduct will question-and-answer their Following

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

any have among our annual the in report on described include, that to on XX-K. well and these XX-Q obligations Commission, disclaim report update Form and our other, risks including as matters Exchange our earnings release Those Securities forward-looking in with we as filings our statements. We quarterly Form

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

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

Scott Sewell

great our our the be developments, I'll business and morning, deeper with pipeline into and recent us for you results legislative current providing opportunities in in on guidance. an Thank everyone. and performance. quarter update an you to to quarter call regulatory XXXX our on of earnings again This during on first transition our first update to our you, briefly join Steve, an a I'll provide speaking review today. the I'm and call quarter happy update morning, Roger then and have good financial our performance I'll update for financial dive It's actions.

I'll first, COVID-XX taken impact But we've and our to actions of an update protect our safety the provide of of the the employees. on business

As priority customers. the COVID-XX employees highest safety the and remains situation of continues surrounding to pandemic our our evolve, the

Charah provides slide to we to way As maintain to with utilities Solutions shown you're that proud very regulated if service our utility on partnered must have to mission-critical And along continue services X, the the presentation, supplemental operating safely. of in following power I'm continuity country. customers provide

to and maintenance, sales remediation speaks the ability operations, to Our for provide this customers daily high our mission-critical resiliency essential continue outage team byproduct utility our to want services customers the Charah also I others and dedicated help pandemic. medical of personnel thank working day again electricity. to thank consequences who our this every of address providing employees to responders, want of the and services. mission-critical during our working continue utility disruption, to and keep first nature of tirelessly all of the our period to are who I all uncertainty

closely. of during customers protect We we significant situation continuity well believe service have our to continue very will this we we stoppages. work the to had ensure our staff to any monitor period, and uncertain and date, To are not prepared

stakeholders our the everything and best on interest employees an to Charah's safety, safety other was ahead to continue will and built are unwavering putting the commitment we make else. we of of business sure and

mission-critical for people, our business to series customers. nature XXXX of immediate of continuity imperative action business. As customers' The plans made a to our year-end have we and call, ensure I recent our earnings contingency our operations initiate described on protect to taken our it our quickly customers

The the are vast continue majority of whom to country. provide regulated to and to must operate power

implemented we through entire and are possible measures communication interruptions, our across our manage real-time to have maintaining with customers. service organization We and

I spending. XXXX announcement employee reductions cash-based implemented of As the yesterday, we savings and reduced of cost-cutting reducing a in retainers QX hiring reductions April, Directors, stated series Board company, in our in our including preemptive across cost significantly to and discretionary in earnings initiatives compensation,

ample health In our Act. benefits the CARES non-essential protect To travel. to addition, employees restrict of of the customers, are continuing we are the and implementing we

policy seem safe –at-home a such the respective We return work to until time employees work as are the also to for corporate office governments continuing state environment.

facilities. operations mission-critical customer on-site remain our personnel our at However,

not observed have communication a existing time activity customers. job result and at COVID-XX as constant in any the of sites on in significant with utility We outbreak this slowdown our are

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

Our exceptionally believe and field well we for and challenges. this are prepared challenging future and continue period, teams perform during these office well to we

service the The press we developing new from we never announced regulatory and implementing more regulatory utility plans to customers' resulting a as in development As our requirements to expected has X,XXX closures the response and remediation the in seeing business our see is opportunities we are address activity award and customer release, stated of amount companies initiatives, in increasingly been significant United motivation. impoundment States. mandated increase than in accelerating higher and their

projects. submitting in with pond are at recently for that major process remediation to We ash proceed the proposals Southeast intentions utilities projects of three large announced

awarded southeastern that of During fired large will two over been concrete in this In closure remove industry. the a utility. by ash we million and project project, beneficially the have by quarter, retired a recycled tons Charah will renewal coal announced be used a from we that plant

the project, years, restored property. will the of of conclusion pond also former the be closure usable next install underway, ponds at the several And will Over controls. as the is environmental the as we

and announced an ownership them, repurpose Wetlands. previously take recently close in by and We owned ash ponds to award energy Natural consumers Michigan as also

Combustion the that of beneficially materials. property project, natural project, Coal the As wetlands as will to of this conclusion be we return fill Residuals part the customer. the we necessary At will a excavate will multi-year reused

while like work or one environment. complex see Transfer Energy an meet our with improving Environmental Consumers viable and utility and retire Liability innovative less of this generating Services evolving they needs as We order, the solution decommission partners, to as the economically assets, also unutilized to

effectively benefit while lowering substantially one-stop close the safely the and site and the cost environmental of the utility. community, services Our of the all can aspects for manage enhance the

states to means and prescriptive, as more continue pond the the their of recycling programs. remediation working ash Agency to as to trend this Protection are with expect as, own states establish Environmental becoming several continues methods We and

EPA work to the regulatory Further, its requirements, on beneficiation continues deadlines. closure and guidelines impoundment ash

provider movements Solutions, utility management only compliance as to sales, situated needs. services for and and is mission-critical, and full-service as of continue these environmental positive these see operations, with industry. to and The byproduct closure requirements company the deliver their remediation to impoundment the ideally for Charah We ash services, maintenance outage utilities partner

first completing Through our of eight XXXX, Technical outage increased nuclear scope Nuclear in to Services growth XX an fall. the quarter. are Allied operations, higher both remainder the in with maintenance we our subsidiary, Services saw during performed, had be from Power and scheduled the and revenue the & process our Fossil of for in we Maintenance as We Maintenance the

of Additionally, primary able increase Allied and the scope customer. to quarter, was our the performed team Power the services during provided for

a performs. Power the we proud maintenance we team are that And of are non-discretionary Allied Allied services. on them mission-critical, work our We nuclear provider Through leading of their success. Power operation, outage congratulate

predictable business EBITDA and revenue steady, us. remains of source This a solid for

during and customers to our with continue daily as well uncertainty our our and of disruption, scope services. services, maintenance period team this high speaks or the of provide operations nuclear our Our and to the to fossil resiliency, and mission-critical our ability as outage ability utility to expand mission-critical of remediation essential nature work of our customers,

of call, $XXX our XXXX, As we value exceeded during XXX%. the awards won of stated, XXXX, in earnings million by new

based have all United over million that mentioned, three will and their as utilities Including we underway, won address previously by they we're awards. And the XXXX, and currently awards utility of $XXX States. needs. an the activities federally quarter see first new large on, new customers the we state-mandated requirements of across acceleration During optimistic, project closure

utilities near-term seeing in to move see byproduct accelerate timing their are and project to we the remediation delays sales some services new related we as the pandemic, with closure forward Though, and for compliance awards, our of expect COVID-XX plans. opportunities

expectations We sales continue our add byproduct new optimistic of also opportunities, greater expand spend, reach for about, remain the MultiSource and customers. driven we our as materials network to by infrastructure

$XX additional economy, The affect timing related $X bid resulting revenues coronavirus these in increase pipeline an and in new in see and near-term to on activity, the may in near continued pending recent the billion proposals an U.S. approximately from and the with term. awards impact opportunities. new the uncertainties to the the We billion

base customized increases recycling byproducts customer States. environmentally-friendly, of across solutions for to remediation and reach is United is customer Our motivation these our expanding as growing, ash geographic and the

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

increase March the ended year planned XXXX XXXX, our quarter three $XXX.X in financial of turning in $XXX.X reported offset XX, increase by in same results. the an nuclear services $X.X the in the component. million, Revenue client The number due and revenue within Now ended for million of was X.X% last completions quarter first March project XXXX. XX, partially million three months to an to period, remediation the from compared the or our increase to months is outages

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

draw as borrowing discussed We delayed through reached to maturity covenants XXXX other loan. that, reset our the our lender an in our term among group our waived at agreement a financial and balance sheet facility the call under secured liquidity, loan our the of repayment, Looking agreement increased year-end amend company's we during capacity March. and with term mandatory senior earnings things,

amendment the profile deepened We customer stock XX, placement. sell in on March preferred solutions. a environmental stock agreement transaction Preferred XXXX, in and confidence increased a credit effective. us customized the significantly to for flexibility and XX,XXX shares Series These the we of million approximately our and offering closed to deliver also $XX.X closed On private financial A our agreements became company's liquidity

Duke to spoke provide to federal we at activity state regulatory update on highlighted North now pond several continuing like their impoundments. accordance with Energy levels. Carolina, in North plans with at state Georgia. to important remaining ash the Department I'd developments of they On received closure and approval the both the North Environmental Next, pond Carolina of has in Quality, an Carolina are for on three for and last our level and work agreement plans, six at the In developments call, their

the to regulatory approved closures to or by work program, of approval. Georgia's Performance the is such receive the Georgia years. CCR, these EPA state the expected second start of Residual, of of completion occur Combustion next half has this XX first and expected over to of making most Coal XXXX,

developments monitoring and We regulatory in Tennessee Indiana, are Virginia, state Illinois. also

place for is that the proposal closure its an This by of increase the removal for proposed The can to when with Agency coal changes stabilizing Environmental regulations ash methods electric soils. final of CCR generation methods. the ash comparing costs closure impoundments amendments closure amendment rule companies. Protection clay aligned were the announced Among hundreds method for and change of closure that recently

October pronouncement in XXXX impact of opportunities. our by EPA increases of believe the of pond proposals operation August the for ash that the closure and from opportunities the of In view, potentially timing the moved is driving and for business collective Charah EPA's beyond. new the CCR the also closure XXXX. plans accelerating up remediation these We is The across to impoundments utility stipulated ceasing requirements Solutions space, XXXX

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

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

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

Roger Shannon

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

increase X.X% compliance year services increased number ago million XXXX, the the million, partially second completion first period, driven and in during the $XXX.X Brickhaven of primarily quarter of project nuclear period completions from or by quarter to XXXX. in for outages component, offset $X.X Revenue of within the remediation including project in an the the by the our planned

decreased profit XX.X% to driven completions in our Gross segment. $XX.X These to during Solutions X.X% quarter, by XXXX in gross declines Environmental last the million million the same in period $X.X declined or margin project were year. X.X% while primarily by from

credit to the of lower expenses the in We and reported general $X.X the from Solutions debt Charah of interest net. a our $XX.X loss ago primarily higher offset facility, expense as The extinguishment profit, attributable administrative net million first and gross the year for period. quarter by partially and million to of loss lower compared third mentioned attributable to amendment previously and loss resulting was

of QX to from profit. lower EBITDA million gross due was adjusted period, down year $X.X primarily ago $X.X the million

months revenue the of as compared our I'll compliance XX, our segment three Environmental million Solutions XXXX, segment, $XX.X million to within Now, Brickhaven March million completions level. completion at primarily termination. project results from or project, decreased by to our in XX.X% the and for including discuss the XXXX, $XX.X resulting $XX.X reporting deemed driven services component, remediation In the ended

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

three Maintenance $XXX $XXX.X Services an ended or XXXX. planned the the increased March XX% segment, of million months $XX.X in to to attributable and In to the The as increase increase Technical outages nuclear revenue in compared million million primarily period. XX, our for number was

$X.X of decreased Maintenance approximately to services offerings XX, to million the as by the did X.X%, Services within decreased services. that XXXX, a primarily profit Technical from quarter, X.X% offset from XXXX nuclear XX, the increase profit and March fossil gross as gross Maintenance margin and ended Services Technical not X.X% an offerings. our gross months or this improvements ended compared million for reoccur March months by $XXX,XXX our in margins partially three of during to three services $X.X result driven mix

Now turning to our balance sheet and liquidity.

collect million. quarter contract end, operations of $XX.X operating was use assets, expect our For spring in capital the AR XXXX, primarily first increase to cash working XXXX. collections flow in past nuclear and with outage driven requirements cash negative the continuing QX quarter which XXXX was of The in we by an

the we the quarter. working primarily CapEx due in negative associated debt to for the mentioned capital during the gross be quarter XX, the total million. of quarter first collected March resulting The had million, increase At previously requirements during outages, was nuclear debt free will increases which XXXX, cash $X.X with spring in consolidated of $XXX.X flow million. in $XX.X second is

was as approximately of March at XXXX, of fourth liquidity quarter $XX.X million XX, of end up Our from million XXXX. the the $XX.X

Next, I'll guidance. address XXXX our

of loss are a of year-end That XXXX was free expectation call. cash expectations guidance an EBITDA of positive. $XXX million, provided XXXX and adjusted be revenue $XX net previously We earnings million that of flow $XX our affirming during to our million,

of COVID-XX on employee not XXXX COVID-XX our customer specifically the material Any no absences of current quarantines. The of materially work could to, and the limited stoppages, guidance no material pandemic and expectations affect is and pandemic government-mandated worsening outlook. significant including, contracts based existing but no our worsening no

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

Scott Sewell

Thanks, Roger.

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

has in a to remain partner and as quality, ability the generation financial maintenance services compliance of Our specialized believe services and to exceptional meet position. We grown, for our power needs the suite result our full of our their environmental mission-critical with safety customers' we bring, confidence industry an choice record. of enhanced

the observed business disruptions any to nature of have operations. We not significant due mission-critical our our to customers'

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

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

environmental ash base utilities mission is focus there recycling infrastructure nuclear large and ponds and by component that our coal current needs; predictable; legacy critical the mediation; routine a non-discretionary, utilities XX% stewardship regulatory and two, position. grade and regulated of critical a of or customer three, compliance; acquire waste on and consisting services; four, financial of base installed is One, very on enhanced future sixth, is maintenance existing rely increasingly investment an disposal five, reactor liquidity specialized products

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

great our gives the new previously, Charah of and from to Solutions. through and again participation. interest shutdown your manage minimal market, future you Thank awards, addressable with for gaining in expanding momentum the coupled are ability increased with the the confidence disruption stated As we me

And with that, Q&A operator, session. the let's begin


line Stifel. the from of Your Hoffman Instructions] question Michael comes [Operator first from

open. line Your is

Michael Hoffman

family everything you all Good well with Roger. and Scott, colleagues. morning. your Hope is and Thanks,

Scott Sewell

well the doing same with here. Hope are you. We

Michael Hoffman

the think. as I but cut, a Need of yeah. hair most far country as Yeah,

Scott Sewell

here. Same

Michael Hoffman

threatening wife's clippers. my now to, just the the pull could they to it cuts scope? rolls So Are be that them, they've taken cost you around the quantify remainder the of questions you alluded And two, year? that. and horse And Roger, the for two out done? through

Roger Shannon

year. of we the been last bulk end some – have is about tweaks has we additional cost the flow beginning Yes, starting impact the of risk a at that through. Michael, towards we That the done We to calls, had the – have implemented believe that We cuts. of year. previous talked to in

taken reductions XXX(k) mentioned we have the as some other the situation, As spending as to match well cost-saving salary we release, including in COVID-XX related preemptive some steps cuts.

say to would related bulk I of So, has that been the it headcount.

Although, and we've looked toward across savings flow through year. year, the cost to been the and there with entire has organization this made other last we've end the identified of continue that for that we that well make we

Michael Hoffman

And are that number on the as amount? a dollar we far as putting

Roger Shannon

No, that. we haven't disclosed publicly

-- you benefit first see think of last of through-- first I last in that compared the disclose for not year, quarter can to year flowing year quarter now. first this quarter the of

Michael Hoffman

when Okay. softer work lack the to pick actual the Brickhaven? the and of could award we back of until from And do started then is you to you --there work, stuff then lead the renewal quarterly of sort will, remind us, if anniversary headwinds a up again plus

Scott Sewell

you to question Michael, ask is Scott. we--. make this I again? Hey sure want Can that

Michael Hoffman

come couldn't out clear. Yes, probably very

new you the of pipeline didn't revenues. us way So, so remediation on is -- replaced had get basically headwind a that it gross margins I because think in renewed work with your XQ, and the anniversary shared you and with

pipeline, the happens. working Brickhaven We're down

Now, it into until stuff. revenue. awards see to turn back high-margin start that's XXXX, out, And really the it's we comes not

do anniversary high on that pressure this I had you was that? So, When margin. revenue

Scott Sewell


Okay. sure. you I were I asking. what thought wasn't That's

that So, QX. the of about best I is the think end think to way

the at that So QX. be end of anniversary would

with normalized associated system, to of would here them the a related at starting Brickhaven awards the the kind getting of new to with You everything ramp and flow us all then and that end the were XXXX in -- out of see the QX. back level

Michael Hoffman

could giving basis, cadence? the of not not quarter, me, the to XQ cadence remainder XQ, follow walk you were I you Like do cash in you're us you how for positive. positive? XQ dollar, through XQ, free dollars the by negative say does you'll a look because last flow then but through relative how that so get And year, the on the But be much Perfect. to on year-end

Scott Sewell

modeling. little But quarter your where Sure, Michael. let and between answer ended at think where you were versus kind guiding QX we of difference the noticed And one. of bit really, where that to Roger -- look I where I'll were I you a when you

think the added all the end our here is capital nuclear working I thing work. build with of associated on the just biggest

outage to-date, and we back mean, and strongest, largest short time works a a right period I very of capital strain on had that itself spring working it our season only again, for puts very, out.

kind if all to just quarter to going it the anything to of want that? now, out itself got that's work here, Roger, So, add and right at you caught end else and

Roger Shannon

No, that's right.

of kind balance for increase outage then unwinding, the expect in seasonality, that. You expect Allied, can in is we fall a with the some outage. see Allied to as as the on we're It And be outage, be just the QX, on, in back would additional normal but… accounts modulation at the by I cash Michael, pretty into much increase large sheet, flow significantly that going at in on That scope and QX. materially for is coupled driven the well in to up exclusively first QX so receivable into that of was process quarter

Michael Hoffman

question. lot. Okay. last I That One That last helps. a one have, helps

would journals it, as is seeing the you struggling reduced of Are byproduct. a that? your customers and any your about So you to trade of that have fossil of some talking how demand sort see a impact stay-at-home How then this particularly through utilities flowing are corresponding correlation the your are is has on-site, under services dramatically. into

Scott Sewell

seen minor. as seeing in mean, and any Michael, very, day We're as to remarks, nuclear power the I we significant downward again, about but downturn we But to you -- stated as trend well bit, fossil are We're our generation, facilities. seeing think a providing generation. very daily a we the release, haven't the in little it on-site relates our every when services at both as operations. press still

on-site our sales that watching are with structured services monitoring supply a make make bit less is going and relative spot. I the contract impact But think for to we trends that generation, good in a bit. downward the closely there little are byproduct sure that's any what to we to a little

we a However, them recoup is byproduct We mechanisms continuing strong to lot pricing with see talk around sales, have still and of especially to extremely demand increase there. demand infrastructure else. spend, everything

that something we're just So, monitoring.

bit are seeing We a of a downtick.

impact right minimal. is very However, us now to

Michael Hoffman

you Thank Okay. much. very

Roger Shannon



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

Your is open. line

Toni Kaplan

Scott, you. the Thank it in like sounds opportunities grow. to continue remediation

amount And contracts you the your structure could just discuss capital on, current so whether job? given each you can start-up inhibits bid in hoping I that costs was of

Scott Sewell

Toni, thanks.

standpoint I really opportunities a front we've of ever byproduct us standpoint mean, before. a the as well seen sale right. remediation like You're in as from are just nothing

been -- not there there's slowdown. a not has So

we plan and easier way think been, is future. have they future sets our been us the very the of with as the think growth. should so we we contract ever team capital up well about for it structure, and how we've development business for cognizant than Our utilities, I And

really It does.

of take at firm in in here you in work, supportive now. our that's advantage look I a has and of take done and right being Roger us of I sheet balance what have to we've the position debt something that reducing recently, balance think this been strength that's with done if of very increasing front effort to sheet advantage all we the and been our liquidity, of on. big When talk that opportunity focused and about of

Roger Shannon

enhanced add sheet would you Yes, that $XX as the I holding the equity see preferred We're balance by look balance sheet. that million and we've the at just roughly on if transaction. Scott, that liquidity cash

in has lender did increased and third amendment the been the liquidity very $XX million that we as the us, Our opportunity recognizes during supportive by quarter. of part first front of certainly group

that and opportunities you So, expectation that in of was really described. the in line

that. recognize certainly we So

and reduce we be look of things positive that to the to initial working -- at optimize cash at of sort startup. We've other conscious flow the strain certainly outflows mobilization. of and the equipment The is, cash projects. cash of looked around expenses very at kind We're beginning on any the

very we're in flow. from certainly very holistically capacity both terms focused of liquidity So, and the on of at balance kind looking much it perspective and sheet and and cash

say no, I'd I question, your answer don't. to But

large As at we're execute, particularly think we at customers about up the the how with on this. of nothing these to and there's at really that partner that able just ones mobilize mentioned, we opportunities, moment night, us and looking being our kind keeping

Toni Kaplan

that of for then about great. How structured just reimbursable. And portion fixed mix my cost work materials large That's your Okay. even versus and should think variable follow-up, a or your time costs? of the is as we

Scott Sewell

depends can one costs way at really fixed structure type costs. And So kind what's we differently contract think, of how and to fixed versus that Toni, and it I we by track are contracts. described view that reimbursable think that's the which to -- something we us, look well as I considered customers all versus and those our on at kind of as segment-by-segment variable

know, if got way describe better don't Roger, I a to that? So, you've

Roger Shannon


is, I think alluding to what right. you're

nuclear at the you Services the If look T&M. outage segment, that Technical side, Maintenance particularly & is

a So higher percentage that. there's certainly variable of cost around

pretty You night those personnel during field can outage see back ramp season. and that ramp during we substantially up in down outages

component on fixed that we that down level. the it to see, although segment, I of don't report

the about built as breakdown, was on kind I If But less. on count project-by-project side, those. think I it's had the equipment you Solutions is certainly something it baked a with projects, into am profit material, the basis, head just when the Scott saying, the at gross the going logically, it disclose of look to a we into publicly. is cost at the those of of resources, projects, From the again, not Environmental about kind it look think we

was to, help? basis Scott Does as company it So more a as that we really on on at wide. look to alluding a project-by-project opposed

Toni Kaplan

Thank perfect. you. That’s


Bank Michael [Operator line the comes from Instructions] America. question Feniger Your of from of next

line open. Your is

Michael Feniger

Hey, guys. question. Thanks for taking my

Scott Sewell

Michael. Yeah. Good morning,

Michael Feniger

morning. Good

in now we're quarter March. at you May, -- now are your end the guys of You last reported

still be You slightly gone fact to last from that outlook. which be in reaffirmed and reach? to and of -- EBITDA should of And the we positive is different Is end seen could what anything and April through your to that hitting does be guys bit on sit still those there based of of guide? reported cash original that May, supposed be little it you and flow, some expect you've -- most original to guide, the free feel less does COVID where easier positive supposed you at reaffirmed from just aware there you've of is confidence a like Does companies now feel is feel be have your I'm now, positive when is your guide? you out till your most Is on gave guys more through you obtained? the any just March it what areas with you April. than curious

Scott Sewell

strength we and about of the Yes. -- related thinking specific workforce, back of and question, strength highlights on to Thanks, to some really I model. as the COVID was what Michael. couple -- our and we but well. are, XX tie our Hoffman last your spoke things and just of a just asking think of And them I'll who yes, resilience I days, since think it also to the last business resilience not Michael But touch

group that strong their they perform said did some to QX. in highlighted April, things Like M&TS We our audit work. continued in the you of

to and sales every the our teams ash byproduct day. work well to go fossil plants, perform, performing as remediation as management all daily Our ash continue our at to continue

not I really were significant we spoke. able last to why think really a We guidance. seen slowdown have since highlights reaffirm that just we

obviously, modeling or think think more a I of when the bit have analyst numbers probably kind cash seen about -- else, we looks anything kind of different than exercise, of there. out you the a an perspective. little I from models it's all That -- flow of some

because negative coming a We the of cash stood where expected flow with outages. QX we just into

balance all Roger pointed here of that in will over conversation, work the year. in itself to as So and the earlier QX the out

to think I perform companies it. pleased last or a speaking of we of quarter we we come and guidance. are guidance to really spoke you So there what out changing approach around out have took And to the other in and how lot be directly we what when -- just we able that reaffirm very we pulling can we were guys know hand,

continue a taking that move be we -- reaffirmed tough again, then, it good a to make And you pace. April. it, and we look at through And it what sat at our teams and team how able to a as saw for were said was our down to we month through supposed everyone, as

year, we're optimistic and about the to balance our able the So definitely guidance. we're of be happy to reaffirm

Michael Feniger

be to Are of and And COVID you there's is acceleration also lot the new backlog? you're seeing these with awards. mentioned even projects obviously, for Scott, then awards? you the a these I'm is call, delaying mentioned curious, bidding some awards how into opportunity on the ability just -- these awarded But some your the through awards. the delay

year. a there of is of wanted has we or supposed been a out Because a the this starting is in few so. months decided yet. already COVID, push see awarded. concern, project they back it be It's to to Or utility half It's of your in a backlog could delay

Scott Sewell

awards, expected. if the the is So think you two timing about continuing things, of new that as

be. generally of we we expect XXXX. that in XXXX new we awards coming saw that where record had year to the line in pace that in of Those startups QX into with it So are

in when to -- seeing administratively. now or now. QX, timing is QX, right QX, right I say, of expecting we from speak We're newer we're awards awards more remarks, would I that bit little what When new delay the of,

our about customers, of a think maybe is everybody and you remotely little productive. less bit working all If

in an of this delays related more any the perspective or more it's some to or do of not perspective timing So to, bump to It's administrative of system kind going of we're of of not little kind a this do we going here. project kind there's a hiccup product. a just speed why are hey, and there,

just of amount It being of just of development in right couple year. like I team the mean associated is of us out those balance really. front how and now, it's our with the But of I've awards exciting to and the amazed opportunities productive stated times see fully and them. time we expect is rest size scope And in come here, a business very us, for

Roger Shannon


today our I of April, to a have reiterate that, things progress about halfway in for expected are through just and million that $XXX confident be we hoped. number startup, through through talk having million $XX continuing chance the disruption and -- guidance May, speaks that to feel I -- this that EBITDA we when for through gotten wanted -- there's almost think it, revenue and as that we would less we to

Michael Feniger

you. know a to any the just credit maturities? and us remind the big any That's amendments I'm the be on tranche helpful, big next I curious you maturities aware like. could Thank did you lot big if guys of? of gentlemen. or And

Roger Shannon


of of this that with the through next when liquidity QX months, The the bank next of so over of XX.XX. remainder the quarterly so pay end that is the group, the the increased We're at quarter, scheduled I the you the about down QX at the lender XX of loan through change million tranches different group -- increased we've course of term $XX the think starting So $XX the liquidity, through four think be million. of amortization over second not we about quarters, of amount starting to the course XXXX, would year.

the of paying facilities kind of So to to just are that pay amortization amount relates the current equipment change. the down And didn't terms portion in bulk that quarterly, our downs from type you of of as but agreements. those that the monthly see per then

additional of projecting the year. million to are we pay net-net, down So over an this $XX-plus course

Michael Feniger

one helpful. like Okay. in. just sneak That just lastly, was to And

You mentioned these three major Southeast utilities.

You you And waste companies over talked you are you similar it tons bidding of have, of the you these submitted type in market Is Is a type against some million with removing to to guys the who different contractors, tons where I curious awards? I of engineering of in players at also kind moving of I'm XXX opportunity? content mean, XXX just look And talked companies over it's seen million ash. ash, bids. guys you're then for are about, -- have an you think, award that your Scott, about an coming that past? try as multiyear this a deal. or

should be And complicated? Is in there some we guys Thanks again? curious able from are seems of like environmental form drastically seen the If more haven't upon, done be that structure Is Charah different contracts past? that installing you I'm can just to with some we guys anything this it be these you past. we they're the It different controls. and have that bigger this reused have if aware aware. in contract you everyone. components

Scott Sewell

projects sell the with done. it's Michael, and and be for use We've ones PR you what for to hire and would also project of and us. very done tons I on bundling be million-ton point million upon, us. right the our if ash much kidding, a need scope of just smaller much to tighten as remediating bigger of Thanks, ash we've recycling. actually just in then that it's because our my to nonetheless, our wheelhouse size MultiSource I'm your to to our ability wheelhouse for a If and great in excavating it but two there, network guy And and XXX front, beneficiation well. exciting phenomenal past

time, relates of. like we're whatever companies ash-specific they to that's And We've or on out folks the one to over we then or of market mentioned, like not times. competitive to you just that that different changes years. we're compete haven't the but relates the competition, different civil reason the And focus guys we've decide have attempt this than nothing there, contractors. and of out for to really seeing that as get safety, project, to proud in E&C same anything because quality yes, again, seen people or as been I on then customer sense So, it ordinary they don't mean any extremely from -- side. it and time have had There have. seen waste we or

Roger Shannon

three large about they I think mentioned, you our would And when add, just these we on well. that that, capabilities Michael, know

sales, site, what We the work, work. can you us, if combination byproduct we we're that, operations, this have And can company we believe bring, daily do. bring ash services performing there's about And good as that these of that the no relationships on we they think, the there. know other I where think already remediation

combined we be bring kind two do product. seek in suite. beneficial and reuse you're talked that to of to full to So in be seeing opportunities, sales. to the remediation that able in projects that's that about, unique the work industry byproduct And We able of fantastic these

and There's ash certainly of fly for as recognition a the benefit substitute cement.

on, U.S. the as eye keeping impact moving projects could the possible the get to Of a again. course, discussed being we're infrastructure a close economy announced that potential be that's more, across of of COVID outcome

value suite the customers we that the kind the industry. see think of we become in unique in we that bring, that full So


time. this I'll closing at questions, the further no are There turn for to comments. call back presenters

Steve Brehm

interest everybody quarter. to call. everyone's after in story. we to And speaking look time the appreciate And interest you. the here, I again in And today. Thank our forward QX

you safe everyone are families hope and that do. everything safe. listening Just and Stay

you. you. the Thank And thank call. So, end we'll


conference today's concludes That call.

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