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Charah Solutions (CHRA)

Participants
Steve Brehm Vice President of Legal Affairs and Corporate Secretary
Scott Sewell President & Chief Executive Officer
Roger Shannon Chief Financial Officer & Treasurer
Brian Butler Stifel
Alex Rygiel B. Riley
Call transcript
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Operator

Good morning, ladies and gentlemen, and welcome to the Charah Solutions, Incorporated Fourth Quarter and Year-end 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After today’s presentation, we will conduct a question-and-answer session and instructions will be given at that time, if you would like to ask a question. I would now like to hand the conference over to Steve Brehm, Vice President of Legal Affairs and Corporate Secretary for Charah Solutions. Please, go ahead.

Steve Brehm

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

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

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

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

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

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

Scott Sewell

record is report strong at COVID-XX projects start morning, awards, everyone. of and safety a XXXX XXXX ERT the culture, that us you tight Charah resulting very that of I'm three Thanks, growing and was to and pleased I'm a for major new operational announced business. our to Steve, of Solutions, an cornerstone pandemic joining outstanding with a market. safety an excellent earnings level progress for Charah business call today. year a and labor for beginning good report during at the record in our environment, Because challenging strong maintained to from and a our we comes first pleased Thank

ESG business year the paid hard quarter recent the our EPA million off, in Beginning results as November provided us, address set financial XXXX XXXX. developments. of full level also exceeds will guidance. performance record for record above Roger the our with update work ranges last I'll and we on of bid cash free other EBITDA initiatives. year or for financial new million This that adjusted fourth XXXX business which revenues, at provide update XXXX $XXX during awards, a new for our awards, of morning, in our a with we I'll new awards, year pipeline, and $XXX revised our review Our the and then flow. a you top our business and was the were guidance end adjusted business ruling covering

compliance business midsized of power pond The The and third of release lines and marketing several In closures last remediation year The agreements quarter coal-fired November. and at XXXX its works. approximately total projects, for contracts. most two our plants. multiple our million year $XX these was new existing for record Midwestern included ash recent one large span awards and two earnings utility, is with of significant after awarded was that a third all XXXX fact, Board renewals the several projects, of consecutive this ash of ERT of small our of included

business team. new the both currently our since November. win to industry-leading Our power with increased experience approximately of have pending our the reputation, of and to services, resiliency customers in continue conference new million We billion our $XXX essential and call existing which has to speaks more nature generation ability $X.X proposals, of than

of also We identified across businesses. opportunities have our nearly $X.X billion

We of coal particular, January work next of contamination required On of the Environmental CCR issued positive continue efforts ash it to under size administration are previous XXXX that opportunities a on and opportunities surface with perform. the note, additional guidelines address Agency that optimistic Protection our commitment some our into significantly Charah. the coal impoundment first, our affecting the on believe level, in for further Protection be our new to expands market over ash prospects market utilities is as The this future. about that well result projects. respect the of call, years, EPA's the we that converting business bid closure the will the which year, administration federal revenue of for activity, into the mandated strengthens preventing January the the and stream to will addressable the the under well will additional impoundments number We which groundwater few of for this review Biden development, remediation to management Environmental very to and On I expands At add the as Agency advances layer beneficiation by the these predictability indicated ash. amount a be I'd and XXXX of its to year and groundwater regulatory for regulations regulations. expectation from both like new in ruling landfills, in solicitations, robust accelerate ruling deadlines, as requirements, should growth would

environment develop expect business plans. EPA's as state continues which announcement, anticipated to regulatory the our than to the However, we was announcement The impact bids of the be on timing to for pending power favorable revise may January based seen an which in order the well. for or stronger reason, their on level we of the continue. EPA time this expected, scope owners have compliance generation Since require and will ruling the at assess

states significant at the a pond a ash of there and activity number have approach on move means methods to to prescriptive we continues As of as more remediation. discussed previous they be towards calls,

we addressable and I about As remain the our position. very noted, market competitive of size optimistic the

and needs. adds deliver The optimism regulatory for and As are a our EPA EPA for solving announcement help and companies growth, choice remediation partner quality, of only an generation environmental customers' situated requirements power complex and ERT and future and as in we most utilities to on and services. to their our January particularly compliance across leader industry and that expectations compliance, challenges safety state ideally

The impact green favorable growth believe see that law impact end-use timing ash have ramp the ash will more November recent EPA like state to sales announcement, the infrastructure Much on fly into of environmentally signed recycled We material federal the that driven in consumers XXXX grow. that bill friendly entities result we customers and the alternatives raw for byproduct construction and also in will by we the we sales concrete. demand the infrastructure fly businesses. our believe by and in Portland and from accelerating of in utilization will and demand cement believe bill the uncertain, a exact services is positive

greenhouse for and Portland calls, the the reduction cost ash concrete on pound of As in COX It fly savings. we quality with gash. the the substitution a discussed effect has of of have improves past pound provides cement almost

in As about excited we of a fly our this the of leader growth recycling of the ash, business. are part future

our an of year services ERT turning to XXXX for the businesses, growth was Now, an excellent our update on business.

Texas our in and $XX.X economic unique real expected customers. proceeds require and Our million. contract for we a and of This This sale. administrative of as of remaining remaining Last potential remediated to December switchyard older consisted customers for property provide did parcels ability on address new the or the associated remediation month, Gibbons in the were challenges the a acreage sale of assets with for we retiring announced single-source In property closed less XXXX, parcels quarter viable solution that not year. generation for closing economically positions acreage, for us with project that existing real cash Creek the the XX% immediate a third of looking of includes sale fossil available nearly acreage this strong facilities. valuable and partner and environmental a net to at

into Gibbons we the completed, the scrap expect to side of Creek, we and the planned plant the completed that at and the of With continue remediation October. half XXXX. first implosion fourth in quarter, demolition sales On demolition last accelerated

actual of for Additionally, we the to the due AROs the our AROs specific between in the were costs on and gains at the estimated Gibbons able incurred fair value of used tasks. differences remediation Creek expenditures measurement the recognize to

close coal-fired plan Avon XXXX. and of April, completed ahead GenOn of the on In be after The the assume new acquisitions the environmental from generating expect stations Our we announced of and expected sustainable remediation remediation continues plant project XXXX. Cheswick Cheswick and substantially work for to is in to ceased acquisition is of plant We redevelopment site. operation. that responsibility the ERT and December in we demolition Lake the a

And exceeded plan Creek, to start site We we ongoing efforts remediation remediation. will the where have very plant at at timing workforce after pleased We and particularly commenced contractors for closing, both with engage vendors, all, remediation results we coal redevelopment immediately ERT have projects. environmental and our properties. are our planning expectations. yard and support our In of to Gibbons performance and the these local projects,

an Charah continue advantages and resources compared with to represents ERT our believe growth and those utility area to unique other profitability, expand to we possesses that and alternatives. for significant continue customers competitive for We opportunities. benefits devote

Prior Dominion to we successfully compliance first X and coal business. into phase reclamation we the turn ash remediation Phase project moving the of our that of I'll project. for year-end, and Now, are completed Energy, to

announced pond Additionally, we the progressing early that and ash project very Southeastern XXXX well. a continuing two ramp long-term in to utility closure major at are

pond on also projects, including ash work We the multiple mid-sized recently closure awarded in project Midwest. commenced

As chain our press construction winter were compliance by much fourth are projects. we we expected our and delays conditions to occurred noted The which quarter margins. result XXXX gross issues projects, certain mid-year. supply at the be of adverse delays, issues weather over construction experienced completed which remediation of release, a most affected These of in at and

options utility remediation ash of our ability that the of these our ponds. on-site landfills. potential contract reuse our or they discussions the in project is remain beneficial situated As major we utility we In project the demonstrate business, to are generation conforming either our on ideally example power Southeastern will project, beneficially a to coal reusing closure placing achieve of services of utilities ash half and and utility Charah excellent in fly optimistic regulatory with and close Dominion of an obligations, deliver The byproduct into evaluate support used it off-site is ash. and customers can in the at technology our paths. state or for use the dry partners be and EnviroSource their and companies both first the beneficiation for This commercial technology agreement the this of year. first wet EPA

a methods. the vessel cost lower can close other As the with be profile competitive. in scalability ash has of customers' and The a increasingly labor for significantly reminder, become It a our than business and disposal I'll and utility as design reduces impact technologies, ponds a months. EnviroSource on competing needs comment landfill, developments deployed about market certain update has business. this tighter macroeconomic and

logistics supply many In and issues affected sectors have chain the of addition, economy.

our us, pandemic. brokering globe. obtaining business certain sales increased providing the the materials and rail logistics transactions the have to logistics, raw business, rail labor the in truck drivers the of in and due COVID-XX some these materials. logistical due issues and party decreased of rail part sourcing, labor market to and construction includes the coal comprised of availability We for to truck, trucking. management materials our congestion, primary in constraints concern the Where raw third impacts delays this and particularly reduced needed in Sales is movement barge, pandemic But affected XXXX the the raw have facilitate and material materials the importing affected transportation ash is which has experienced of by that raw tight and and around international ship,

from ash Asia a imported coal ash less expected. and from As result, not we we did import than Europe,

and are contact suppliers the staying the conditions improve. chain international our we raw We shipping with supply are material and event to continuing situation, global in that in partners monitor

contain successful pass-through been The in resin the been and In terms of contracts to work. our our increasing, have been workforce, in have to perform leadership we middle other clauses commodities. in Wages increases majority of have our availability there that hindered but fuel, date, have retaining certain for constraints ability our liner management. not cost

with performance review I'd to like Next, respect ESG our initiatives. to our

the our fuel disposal, previously, safety. to our of report land and of business. of waste is have had our performance, I achieved and and of X-year lost is as all and In objectives heart substantially at well indicated key we areas rate that in X.XX X.XX, consumption diversity the notably which and pleased safety, we sustainability sustainable no As we the redevelopment, recordable incident electricity below area am incidents total environmental time of inclusion we water, key or lower. as and goal of had a ESG

XXXX. employee Our with safety safety construction, recognized was safety and in several performance for awards

and B.C. redevelop XX% In are of terms of owned, the Creek substantially sites. environmental Cobb performance, Brickhaven, track as remediate to or land such we the Gibbons at on

number site not the site inspections XXXX. We doubling of notices any compliance receive and of of nearly environmental notices deficiency in increased both inspections We team quality audits did or violation with XXXX. and since have

in also reduce, to our We water made or recycled progress replace use evaluating water. consumption with

also the We ESG betterment the that developed and quarter our early ESG consumption our significant XXXX, we waste our issue electricity expect and showcasing our leadership track for our I individual second would of communities fulfilling of methods note report have planet, natural and to our production annual second our preserving and sustainably in fuel customers. at sites. to in our resources, commitments our

help Charah our that, thank the reliability With are business. Solutions supporting customers ensure Roger needs. turn I'd their over environmental remain over every customers We to to CFO. and Shannon, and turning our our Roger, keeping address safe, I'll working service call day like Before and committed it our recycling who to growing to employees to dedicated our to our people

Roger Shannon

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

to that had produce now utility-sourced support, from sales. fly in SCM's year management material new landfill services driven have suite and and company, is services. as sales, sales This bauxite iron raw compared of brokerage sources, work. ore, use how and utility raw We project logistics $XX.X $XX.X descriptions and in Raw chart the the whereas which internationally CCR partially around raw the as fourth with our $XX.X ended, the arrangement. commencement the Please material the operates sourced to offset services been to raw with sourcing, increase million customers while and by management previously needed material our products, of XXXX. we investor to nonutility quarter the product also better include in the with operations transactions to by our it such types quarter these customer industrial of million services sales For to to updated material primarily of XX% revenue we moved reflect increase of management services cement, included XXXX start of fly-ash to was align is Revenue materials other providing I'll now million and This fourth that added our increase by facilitate remediation the compliance for supplemental results. decreases from increased presentation. an breadth was refer the we revenue globe. our by or marketing

XXXX. $X.X decrease for projects resulting million quarter The most joint have chain projects, of are fourth was from million, $X.X our was ocean XXXX. decrease and supply weather to Ventures, profitable issues second The material and decrease primarily As which chain the XXXX the constraints, gross was as completion the adverse reduced rates byproduct international $XXX,XXX supply LLC sources of attributable early to at decreased completion, delays, Gross of of Ash in sales due cargo supply opportunities. profit profit by mostly the Scott the in noted, driven venture, high quarter particular, compared to to in by dissolution driven reduced construction raw from certain sales in impacts. in in of issues nearing services certain that

income As net estate fourth non-recurrence million expense. administrative expense real on gain Charah decrease and fourth net due to profit an was of a were and gross payment the ERT increased of XXXX. the $XX.X on was a of ERT loss contingent million primarily services, at from from These from increased equipment attributable interest offset Net our sales $X.X expenses quarter property a Solutions in a decrease in of and change quarter an the percentage from on gain of ERT revenue, a XXXX. the impairment improvement to The $XX.X increase X.X%, settlements, project. general also of by in drivers and expense, X.X% was partially other operating of million, project liability, a in ARO positive gains

on The the million in adjusted sale of profit, or significant increased lines on was business. ARO. ERT the $XX.X quarter, ERT from our for $X.X our Adjusted I'd with other captured project ERT results to property reduction net as gains income As a the past our operating to not operating $XX.X calls, the in million fourth that are contributor in EBITDA Profit is remind you for for the XX% accounting in and on Thus, a loss sales Gibbons treatment services real the property of is of to three and revenues the expenses different from services million equipment real other our Creek gains quarter XXXX. included is services. but ERT income and like of during of two compared lines in EBITDA. and recorded and included ERT acreage business gross statement, estate

was liability sales commencement of Gross lower partially to and The remediation in of similar an byproduct these driven offset gross and increase project $XX.X XXXX. by driven profit revenue at of ended mentioned was to to by million XXXX. remediation margin Revenue December for delays the compared the increased This The previously those previously fourth offset primarily of were XX, $XXX.X ended increased a ERT in estate other year as was increased XXXX. on primarily as gross reduction in to of attributable as year $X.X primarily the decline by was for X.X% The gain ERT loss option gross million compared million. to in non-recurring profit XX, million gain decreased full to project, absence startup liability $XX.X increased profit was of to X.X% revenue, in to our non-recurrence administrative December XXXX. turning to increase again, in to general work. for services the services attributable Net on XXXX. a increase an with from offset from in primarily The Now, compared decreases quarter the contingent or payment million sales $XX.X $XX.X the raw EBITDA partially or of material Creek XX, and or expiration purchase December contingent of due expenses by the XXXX due quarter. and XXXX, associated $X.X real margin on type administrative $XX.X a $XX.X sales in for increase XXst, million $XX.X million from mostly an compliance on and gain of lower of Other the was XXst, XX% as were project. completion, a drivers the compared million revenue $X.X change XXXX. projects, billion new $X.X of a General December million of and which project Solutions mentioned. by million are increase the the in expenses year increase to on resulting issues, to in the decreased December the supply of These fill to gross gains XXXX. to from to structural from Drivers million from million, Gibbons in the for year as the and ended net and million percentage compliance lower million. million decrease $XXX.X issues profit lease partially services gain $X.X year the year million the in impairment The expense $X.X from sites, a XXXX. driven net, XX.X% certain fourth most by Charah construction of as the expense, our Creek operating with operations equipment increases affecting for XX% chain $XX the ERT increased loss in and of liability services nearing $X.X $XX.X in of ERT ended operating million expenses payment compared and loss positive expenses property primarily $XX.X Gibbons expenses commencement associated ARO, ended profit. the Adjusted change million

for to significant As I year. also quarter Creek to with respect fourth noted, full was contributor Gibbons results, a the EBITDA the adjusted

$X.X of the Creek, to a in operating to sales turning fourth proceeds million quarter capital property Now, The partially of $XX.X million, XXXX, in cash our was the a sale non-cash fourth $X.X XXXX. of loss attributable flow capital. the primarily flow cash and offset was changes net increase negative and was in cash decrease in from quarter from was Gibbons Adjusted flow million increase acreage $XX.X increase from XX% and attributable of in received an flow. by $X.X decrease at the real the working for XXXX. expenditures. of million cash quarter million an million decrease The the to to scrap adjustments partially $XX.X free positive fourth Operating of of

projects, ERT are on As investing flow flows free calls, previous from the flow cash in statement. cash of which real have includes the in on cash equipment gains net adjusted property discussed sale estate and reflected we from

operations. ARO flows cash remediation in the While reflected spend from is

$XX.X of primarily adjustments. year, attributable the of loss $XX.X increase The an million of the $XX.X and primarily decrease transaction positive $XX.X in million the of was the increase to These from scrap and equipment, non-cash from XX% the including proceeds from estate, and sale decrease proceeds the of real at in ERT was million, sales million cash operating from the XXXX. the $XX.X real offset were a before cash negative cash in capital previously restricted million, a Adjusted ERT of is million and partially decrease demolition by full costs Creek attributable our million discussed, to For operating flow in the increase as including was Gibbons Creek. $XX.X at flow changes an the cash million expenditures, million acreage net Gibbons $XX.X $X.X $X.X Gibbons of project. million in free of property increase Creek flow $XX.X sale an and from of The XXXX. cash property

to our now sheet. Turning balance

not the note to we repaid although released. planned by were collateralized late replaced, reissue of million existing at new under plus to we do letters our those on four-year quarter up for that December, been have B. We As We and the facility credit the cash credit as December. of to conference full the a senior Once in used cash November, is JPMorgan Bank. The collateral with option. provided a credit new company $XX an collateral promissory of the by agreement to new discussed currently cash $XX.X are credit, million, we issued secured provides in was $X supported closed by we note a of capacity promissory Chase available Riley. call, letters in the in facility, credit agreement revolving in credit third and additional million that draw of letters which replace for November facility expect

XX, increase Our at consolidated was December of from XX, XXXX. XXXX gross $XXX.X debt was million, $XXX $X.X an which December million million at

availability $XX.X cash and our Those December million XXXX after base credit issue to cash $XXX unrestricted and which million, outstanding million, guidance, credit these $XX to conclude adjusted to addressing flow million we XX Charah I'll million our $XXX of of free for of adjusted our million borrowing accounting Our of of to loss and to million. at of liquidity with facility $XX million consisted a of million of $X.X Solutions by results. revenue $XX attributable letters $XX are limits. under $X EBITDA $X million net

detail. in at bit more Looking guidance a the

level projects. the XXXX million, business ramp new the Our increase in a continued existing received the from strong revenue $XXX awards of XXXX XXXX and guidance driven of reflects by

XXXX Our EBITDA guidance adjusted $XX million is million. $XX to

lease cleverest approximately may for recall, $X.X reasons $XX.X related type $XX.X actually a required from accounting Adjusting in agreement, an adjusted in a recognized our XXXX. ERT the results from XXXX our project to you been As to this XXXX, that but gain technical of XXXX would be included EBITDA have carryover XXXX, million on sales million million. was for

recall, our reduction scrap $XX.X ERT million. cash which do may Creek acreage due two the although million which XXXX projects, will the of are the by of you in at lower nature a payments XXXX. by ARO remediation, new property December, of by gain, the the Gibbons real was adjusted As that large the $X.X include in a XX% EBITDA real to contributions The Creek on property XXXX, we into XXXX adjusted we ongoing XXXX proceeds expectations million upward projects Gibbons the and project the that arising ERT also and startup Contributions sales beginning to $X.X results the project. upfront of not of significant in from receive to the sale receiving at be of expected sale continue require occurred from in

expect projects side, as contributions issues. well as experienced ongoing of projects, On completion EBITDA to new have we the benefit that the by favorable from adjusted

million. guidance million $X flow cash $XX free adjusted to XXXX is Our

which of will outflows balance be flows real exceeded particularly in the year cash in on be ERT million of of our into expected the the at the expectations. Our Creek associated XXXX the continuing remediation in stages $XX.X results cash when and new early activities $XX.X considerably of ramping acreage sale Gibbons XXXX. ERT and closed million, over property the projects are there million Cash project included to $XX.X and the acquisition restricted we more two demolition cash to received modest, XX% another of of and

previous that, turn our to calls, certain in call assumptions, With, back in earnings Lastly, in predicated our as guidance are more our which release. the detail on I'll discussed discussed we've is Scott.

Scott Sewell

expanding closing, success our believe environmental expanding our to success. opportunities and Roger. long-term focus business new Thanks, for remain value our advantage of We in and position committed positioning to In and growing take the progress shareholders. enhancing sustainability businesses company to long-term we our on continue ourselves awards, in the that keen service for our offerings market

provide to are Importantly, sustainability environmental session. many potential operator, with for should and the interest let's aligned that, generation remediation begin come. power With years closely your which Thank Charah for our Q&A you again we initiatives, Solutions participation. partners' significant growth and with

Operator

you. [Operator line Brian question from Instructions] Our comes go Stifel. Butler please Brian, of Thank from ahead. first the

is Your open line

Brian Butler

you. Thank morning. Good

Scott Sewell

Good morning, Brian.

Roger Shannon

doing? Good are Brian. How morning, you

Brian Butler

Good sir.

Scott Sewell

Good.

Brian Butler

I kind pace. wanted start with award to right. of the All

years contracts? delay long slightly three the -- I how pace? slow now about think a of record mean, EPA generators number the the ruling we have do does with of And awards you Does ruling the slower remediation that how row, but do for the to we So in size EPA XXXX? in a water. end up really that contract of award

Scott Sewell

Brian. Thanks, Yeah.

really from billion kind how record look still over proposals of very in and tracking of pipeline awards. proud not near-term and addressable right. impact that years FY $X.X about XXXX. happened market. is EPA, We're increases When the going billion. to we new sure $X We're pending that's ruling about our still we're the how in expands the at XXX% or concurrently, the new what January, mean, You’re the I three excited

delay. going don't visibility we've hit the of So think believe we fourth that. and that, of bit excited a we're and we're on focused in kind think to to year. But is of very that, seen there our potential going year little a too long, or do be we out the that what about awards, still -- we record it's have We trying here last for but QX that and to to the objective is that's our do into

Brian Butler

should maybe, longer-term give going a moving little about the switching over the on investors of to think color, on timing on And potential contribution based kind how then bit all for then And maybe, that Okay. parts what forward? in -- you can ERT, a basis, XXXX? more

Scott Sewell

Sure.

I is we the as Cheswick to prepared that this to years. contribute Lake -- several The grow as to of continued year. will of us that our it's are around very think that, they in announcements over remarks, and last business the enthusiasm category exciting continued optimism stated Avon mean, I

of through chasing think about Cheswick wind continue down, from necessarily we're see the others of see But projects, contribution out that there of and those I kind be ramp now. we progressing excited it you'll two a Avon you'll Creek that but one. and kind from or Lake is to -- right little not that we're bit -- and Gibbons

to So a category of it contribution on you continues to specifics be speak great do us. more Roger, bit a kind little want to for aspect? the

Roger Shannon

about Yes, Gibbons kind Certainly. just thinking Thanks, Creek. of I'm Brian, Scott.

in higher some value the that XX% As year, several $XX of purchase kind of million that we some the beginning stated, said through total. expecting we quarter, up in have will of buildings that to and some more parcels kind of switch about million low from area. probably talked around wind have net first second, we comprised Charah of remarks, sell the going the the of the scrap XX% we prepared in agreement parcels of We midyear that. the to the the We're type are half sales the the proceeds of also Like third being remaining remaining say, which signed of are acreage. some admin so

the to immediately of cash have property. Scott Gibbons do still but That remediation and upfront upfront the property and smaller decommissioning. $XX said, -- the the said, two TMPA from Cheswick Creek that There for kind So is we TMPA that of said, the a got Lake cash, between smaller. TMPA. the about Creek, amount for we that coming million of is on Gibbons we Avon upfront discussed we differences from the was of one we at announced, payment. because start have We we flow primarily will like properties Like big extent ARO work do good

acquired course two X,XXX the where have of Gibbons had out be the of really But the were that -- unlike scrap of all at to sold The parcels, We immediate bulk for income acres available sale. parcels that be the Creek part properties will this that remediation. recognize over we year. remediated following will didn't

that a loaded little more So from perspective. they'll back-end be

Brian Butler

helpful. If about of the the That's And Great. through kind quarter supply of where kind numbers. in saw the XXXX? use materials on impacting level chain to the going of you the kind the talked is improve, doesn't of Okay. weather kind the and fourth supply that chain right pace you

Roger Shannon

revenues. things you at of you'll I'd but different refer in of couple the look know kind the I And A on there. XX-K this, X footnote to Yes.

we So customer aligned the remarks, and kind in business like look and again, we product that now, mentioned the with look how related. prepared the at we way at it's of

at consider chain or So just as cargo exclusively the ocean decreased made going result that look the sales to -- raw sales almost from have million, material $XX million well, what vessel $XX about we really primarily when revenue, a over supply of rates, you profitable. which -- less

not So that. we're seeing

raw go utility. if expect that number $XX that that. byproduct related we kind whole things with of are wouldn't report to in into I look at lot it working of all pertains million. around Byproduct as XXXX, really services a of As change the that material sales you we

ash day So but only into performing out the management, and -- the not in recycling and industry. performing that cement day services

ramp. the think to course over particularly X this So Dominion that, expect I we'll project year, that Phase the see as increase of

we completed a Phase as I reuse basically that transitioned speak to from of project. project we've more a construction XXXX, that's was So in which transitioning we beneficial

signing talked will we're we about, believe So also, XX we that increase. EnviroSource but close getting contract. Like that go to, will years, the number on for

-- as from don't be category. that Of but this will in expect byproduct that those course, the ramp, we revenue services that year,

infrastructure then it's hope we So bullish bill, later. of very about the than -- like talked we the and sooner on don't growth on finally, We're while the opportunities. timing know really that, we

category see services to that expect we'll So increase. byproduct

Brian Butler

Clear.

potential upside? be guidance. So current That would isn't award that in ramp the in -- ramp that

Roger Shannon

It's it No. -- the at No, we the of expectations million is. beneficial have the No. revenue look $XX the around so number, it's reuse project. $XX million, Dominion -- the guidance we to current when

I there's sure though. XX months to XXXX I'm months, to nine in like get is It It's -- nothing it guidance, question byproduct the for to about but that said, nine -- make within that's falls addressing certainly, EnviroSource. started. your course, in that's Of But category. services

Brian Butler

expecting But you're first the Right. revenue contribution that contract no there's EnviroSource in the guidance new in from that? the half,

Roger Shannon

That's something Missing correct.

Brian Butler

Okay.

to nine ramp? that's So months

Roger Shannon

No, construct. to nine months

XXXX producing we probably at quarter say, looking start revenue we're we the from contract of second mid-year, once that. signed to So

Brian Butler

number how Okay. helpful. -- guess, And the you I profit? a construction was that the impact growth the talked fourth big looking delays the That's about then Do on at have just for that, in you on quarter.

Roger Shannon

Yes. that. kind $X million it -- down the projects $X that million yes, fantastic the mean, I'd put put issues are million million EBITDA. of billion million some we're to I extent, a of that to out. weather by large these $X But We from -- we I very to close some to at in would $X in a that we and it that winding million was expected, over million. area. very pushed area disappointed certainly of year range $X had kind offset saw $XX $X were That by to $X

Brian Butler

Okay. And me. for then last one

you for Do cash the flow? have outlook. for the number in guidance a on Just the CapEx

Roger Shannon

can It Scott. answer Yes. -- is sorry, that. Anyone

the the kind So we're unit, excluding EnviroSource area. we're of in mid-teens thinking

XX. it call You'll

Brian Butler

get for taking in my I’ll Thank very you Great. back much Okay. the queue. questions.

Scott Sewell

Sure.

Roger Shannon

Brian. Thanks,

Operator

for Brian you, question. your Thank

line Alex, next Riley. from ahead. Rygiel please the Alex comes Our B. go of question from

Alex Rygiel

morning, Good gentlemen year. and great Thanks.

Scott Sewell

Thank Good morning, you. Alex.

Alex Rygiel

to delaying questions backwards, Is You’re Obviously, reevaluating awards. due of the and that of in some the positive those have welcome. just a of timing really ruling, any modest such less? plans some set, of and the are of reevaluation that couple your of sort sort some opportunity the EPA to all A we Or incremental therefore, opportunities customers delay here. are here? remediation are going of reevaluations all

Scott Sewell

enthusiasm a timing. the these where as comes the dig the And impoundments. clean be on, to out Couldn't go of they have opposite it more and spot the and that, it's from only of sit You're reevaluate of all where size standpoint. modest or back our out going they're is delay from kind backward groundwater to and optimism these project, that's in ash kind increases have of some close going to of issues, of primarily scope the and

all going here a for modest But kind going plus they them a no, to We're we're you some an rescope earlier. a the be yes, to from So these as a of excited it's opportunity it's standpoint. business. net way positive have really it. delay and just around bear phrased for with great think We about to reengineer of as the projects

Roger Shannon

Alex, -- a place, announcement terms in information larger back going cap full were place specific permitted Roger. to a that okay, pivot to but to customers, because of to exponentially had following it's give And the there of to having contamination comments in comments groundwater and is on project. have cap go plans Yes. to -- they where in public is issues, say, not certainly to I they're to where from I'm even place not the discussion in clean be closure. any mean, -- the a Scott's that not some point, utilities do And

market. is, expanding it believe, So the we certainly addressable

Alex Rygiel

in delays, delays the delays you talking modest Sure. or to one to of And two when are then modest modest one quarters years? two characterize we

Scott Sewell

forward. it still again, I that is belief best do in keep and think we're near-term Our try earlier. the not Brian have and back talking we billion here And trying in I to mean, And we're we moving of years potential the $X believe goes we're billion focused exceed path quarters, to to a that business numbers. And that, one to opportunities. questions on $X this. initial tracking is XXXX pending to our asked going team development on our

Alex Rygiel

any Or And first there any, then, at have in that, in quarter? there all imports the change visibility might is the quarter? that Europe Asia from improved not, is second if or

Scott Sewell

Yes.

we earlier. improvement I Europe alluded But now, in our on expect and of kind that as believe, business. it small Asia when don't any the the of don't and we comments into a And very that imports balance in of would was process improvement of see from guidance year. our portion we've no. well. to not the calculations I included think, to see improvement But QX this, We in comes right some thought do say any and coming or right really now that I any

Alex Rygiel

helpful. on opportunities the first? That's any additional And then beyond lastly, update EnviroSource

Scott Sewell

Yes.

you announcing. a good or really be to but months, for year that -- guys the really weeks weeks for be for a some giving news excited good us hopefully, quarter definitely expecting than in QX good to months, closer we're should coming here So hopefully

the the one for have quite queue in some talking got get behind on we've been So we a to first them while now. a talking and more that we're to us, customers and couple

ERT So got the hopefully, the hopefully, announcements, similar we've good announcements is in we've future. cadence some great. to our a to -- And reception EnviroSource got on relative

Roger Shannon

Yes.

being to years. of It's the concept beneficiation cement recycling of do we some to supportive to reduce And alignment several DOE Just interest try and a from kind around billion are federal greenhouse opportunities these. that a a to a have Department conversations in of of a the we EnviroSource -- ash goals and we're like, next even the punch progress. financed Portland are of that Energy, there in to on we $X briefly, the some And that number kind receptivity then have -- government utility gases. substitution that there of potential lot continuing within list has add we seeing over around specifically with that developed is

conversations on some there's So going around there.

the So think to first day day roll we're the about and start. we the about the these enthusiastic to start one is just more by to -- opportunity out,

Alex Rygiel

luck. Excellent. Good

Scott Sewell

Alex. Thanks right. All

Operator

you, Thank question. your Alex, for

Bowers go question please next with Tony, [ph]. Interac Tony Our question. your from from [ph] comes ahead

Unidentified Analyst

standpoint the of ability dealing and to up the to and inflation a win of at should difficult what opportunities? lumpy new the to optimist, you challenges I bottlenecks? and model, you we're What’s more moment. pipeline to happening it's you if And from business this Where -- wonderful yellow an iron unprecedented pull-through. are really the these scaling on the with able execute it? a Hey, but Scott your find great contractors, are it's are gathers Roger, momentum know continued be price to Can and of momentum. on really

Scott Sewell

the also, XXXX. yes, great the share comments but results, the for And progress we a the Good question. we with think your we We're continue view. on can momentum pleased We will. in we made momentum, morning, and the Tony and and thanks

is grown Just look growth our as we've years. of over done, Charah's when we of always times. cornerstones phases the continued we've It's business through different challenging kind one this kind of been always the of kind at of

continue we this If solvable. new up to of momentum or -- be are all are some going bottlenecks are There some constraints. we right. You're them there and continue pick But, do awards, to think, I

haven’t come we the new the -- not of we executing have year. awards across anything kept from We us new that's that on last yet had any or record awards

of forward markets availability to bake forward. This labor where I today there, get as push iron our continue provisions the some of that in and and will we'll of constraints. it here chain in there some when and for one done move suppliers de-risk to to certain those challenges, the our is done choice same are that tighter also, these work are think it. of the regions. make into some just And or certain has issues we we'll of new continue and contracts completing get I think, awards, customers we get we understand yellow to comes benefit stand do it those out But think supply obviously, I

chain that have and solve market a conditions to we'll I right move or be those momentum position, forward. around supply of with we think, able in issues, even and So, now, we're the the inflation kind good current

stand with at is. path where of kind So where we're and growth our comfortable we

Roger Shannon

And Tony, it's Roger. Good morning.

quick iron $XX yellow million talked Look, for question. follow-up to Brian's the a EnviroSource. on CapEx, we response in Just about number excluding question, approximately

into goes is there course, as well. of So some the that CapEx ERT side

in sourcing you So terms remind number I'd last what equipment. of year was is, bigger a

that of Of for. the had course, jobs some large we very start-up equipment sourced we

to the We put of towards able really good in -- equipment last So end been service. even in were were feel the we about had arriving what has get we we year. year that

job our to at really bottlenecks I any seeing a get equipment of procurement We're not moment looking terms fleet able does being not fantastic need. think in the group and the So, ahead. of

think In in. didn't fact, planned we've I to they just really bring much and as well, -- ahead very expect we

look existing Of equipment course, jobs convert, as to are redeploying new awards we that either off sourcing coming would finishing. equipment these or

but and course, to do Of able that. we first, feel about do confident then the latter being we --

Unidentified Analyst

other out a I guys unique see maybe, different, slightly They're turned imagine. mean, Gibbons around Gibbons decommissioning of the That's Do I was opportunity. characteristics projects efficiently helpful. all you really have a it you that just And ERT, on Creek? the and Creek,

Scott Sewell

right, all slightly You're They are different. Tony.

the performed, its each look both at one commercial standpoint, ones characteristics you financial pretty characteristics, If each the bespoke has been performance in of as our as that and think well we I one. from

right. you're if now, at perform mean, been a Creek's them projects end. and great we has the Gibbons example how you So, these Gibbons what Creek larger on the we portfolio of do. I look of right can of kind

I team is are -- And just perspective, potential still of there. focused little characteristics. think They're they're our bringing your on they're smaller, as on they out the and projects, I think those a ones, but to bit the point have other Gibbons-types out of there in other a size from similar some well.

lumpy. to of a we'll business. size continue layer streams mix that revenue these of to of each on and to as for smooth EBITDA ERT comes more from of it when is it bit lumpiness the and business. to more hopefully and out top good, So, be predictable other, continue standpoint drive some good it a But -- continue we will a the And

Unidentified Analyst

Thank you.

Scott Sewell

Tony. Thanks, welcome. You’re

Operator

to comments. we now the are Those back all I'll concluding questions have for any management team hand today, so for the

Scott Sewell

appreciate operator, you, we and Thank time Great. today. everyone's

again, very the forward XXXX. reporting of calls results balance and future to and XXXX and look are, FY We with out pleased QX our

and your So, thank you for time your interest.

Operator

Thank for disconnect our your Have joining lovely us day, today. call. a This Please lines. everyone, now concludes you, everyone.