Q1 2021 Charah Solutions Inc Earnings Call
Yeah.
Good morning, ladies and gentlemen, and welcome to Tara Solutions, Inc. First quarter 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 to participate brain.
Vice President of legal Affairs, and corporate Secretary for Tower solutions. Please go ahead.
Thank you operator, good morning, everyone and thank you for joining US today. We appreciate your participation in our first quarter 2021 earnings call and look forward to sharing our prepared remarks and answering your questions.
We hope that you have had a chance to review the press release, we issued yesterday after market close if not you can find the press release as well as our supplemental investor presentation. You may follow during our prepared remarks on the investors section of our website at Www Dot Sharra dot com or IR Dot chart Dot com.
Joining me today on our call are Scott Sewell, President and Chief Executive Officer, and Roger Shannon, Chief Financial Officer and Treasurer.
Following their prepared remarks, we will conduct the customary question and answer session.
Before we begin I would like to remind you that our remarks regarding <unk> solutions include statements that are forward looking statements within the meaning of the private Securities Litigation Reform Act. These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those being disclosed in our earnings press releases and conference.
Calls.
Those risks include among others matters that we have described in our earnings press release as well as in our filings with the Securities and Exchange Commission, including our quarterly reports on form 10-Q, and our annual reports on form 10-K, we disclaim any obligation to update these forward looking statements.
During this call we will refer to certain non-GAAP financial measures.
We provide reconciliations to the nearest applicable GAAP measures in our earnings press release and supplemental presentation.
Again, thank you for joining us today now I would like to turn the call over to Scott Sewell, our president and CEO Scott.
Thank you, Steve and good morning, everyone.
It's great to have you join us for earnings total day I'm happy to be speaking with you again and providing an update on our first quarter performance.
This morning, I'll briefly review our accomplishments year to date provide an update on current business developments.
And update you on our pipeline of opportunities.
I'll then transition the call to Roger to review, our financial performance during the quarter.
We are very pleased with the start of our 2021 fiscal year.
When we spoke to you seven weeks ago on our year end 2020 earnings call, we announced that we had won approximately $500 million.
And New awards in 2021 to date.
These included two long term ash pond closure by removal projects and a major south eastern utility and the acquisition of the Gibbons Creek, Texas facility as part of our environmental risk transfer or ERP suite of services.
Since then we have won another $26 million of New awards.
<unk> and ash marketing contract with a new customer in Nevada.
And sales of operations contract extensions with two aluminum facilities.
The $527 million in total of New awards. So far this year is a continuation of the strong momentum we have coming off a record $715 million of New awards in 2020.
As we stated on our last call. These new business awards, coupled with our existing backlog and opportunities for additional business wins with new and existing customers position.
Position sure solutions for strong growth in revenue earnings and cash flow in 2021 and beyond.
We remain confident that the increasing emphasis at the federal and state levels on environmental remediation and the growing demand for fly ash in concrete will continue to create opportunities for <unk> solutions, one stop platform for remediation and compliance services.
Byproduct sales.
Fossil services, an environmental risk transfer services for years to come.
During the first quarter of 2021, we mobilized operations at Dominion Energy's Chesterfield ash ponds for the beneficial use of $8 1 million tons of reclaimed haunted coal ash.
And at the major south eastern utility that I've mentioned earlier.
We also completed the acquisition of the Texas Municipal power agencies Gibbons Creek steam electric station and reservoir in Grimes County, Texas.
And we have begun decommissioning remediation and redevelopment activities at the site.
We are very excited about the Gibbons Creek project. We are also very excited about the opportunity to expand our innovative <unk> solutions further to help our utility partners retire and decommission older or less economically viable generating assets, while minimizing costs.
Maximizing the value of the assets and improving the environment.
We continue to see and evaluate new opportunities to provide creative solutions to utilities, environmental remediation and compliance challenges through our ERP services and we expect to have further ER T win announcements soon.
Finally, I want to touch on the strong momentum for our new opportunities that we continue to see as well as our excitement about the outlook for the company.
The future remains bright for our business and we expect to continue announcing more new awards in 2021.
Following our 2020 and year to date 2021 wins, we still have over $3 billion of.
Pending proposals.
We are in contract negotiations on several projects and we expect to make additional official award announcements soon.
Conversion of opportunities into more new wins will further add to our predictable revenue stream.
And earnings growth.
We also have visibility into an additional $7 billion.
Of opportunities on which we intend to submit proposals between now and the end of 2022.
Our ability to continue to add new customers and New awards with our power generation partners speaks to the essential nature of our services and the reputation experience Andrew.
And resiliency of our industry leading team.
As we have discussed on previous calls states are becoming more prescriptive regarding the means and methods of ash pond remediation.
In addition, we believe that the environmental protection agency under the New administration will accelerate its efforts on its regulatory requirements.
Beneficiary issue guidelines and ash impoundment closure deadlines.
We continue to see these movements as positive for <unk> solutions.
As the partner of choice for solving our customers' most complex environmental challenges.
And as an industry leader in quality safety and compliance.
We are ideally situated to help power producers deliver on their impoundment closure requirements and needs.
I am very proud of the way, we have partnered with our customers to maintain service continuity safely.
And I want to thank again, our dedicated <unk> solutions employees, who are working every day to help our customers address their environmental and recycling needs.
We remain committed to keeping our people safe supporting our customers and growing the business with that I'll turn it over to Roger our CFO.
Thanks Scott.
I'll continue with a review of our financial results and provide an update on our cash flow balance sheet liquidity in 2021 guidance.
I'll begin with a review of our first quarter results.
Our revenue increased $800000 from one 6% for the three months ended March 31, 2021 to $52 1 million as compared to $51 $3 million for the three months ended March 31 2020.
Primarily driven by an increase of $7 $5 million in remediation and compliance and fossil services revenue from.
From the commencement of new projects and additional time and materials work.
Partially offset by a decrease of $6 $7 million and byproduct sales offerings due to lower plant production that we believe was due to lower power demand as a result of the COVID-19 pandemic.
Gross profit increased $700000 or 14, 1% for the three months ended March 31, 2021 to $5 6 million as compared to $4 $9 million from the three months ended March 31 2020.
This increase is primarily driven by higher remediation compliance revenue from the commencement of new project work.
And an increase in gross profit margin on byproduct sales, partially offset by the previously mentioned decrease in byproduct sales offerings.
The net loss attributable to share our solutions decreased $13 million or 91%.
For the three months ended March 31, 2021 to $1 $3 million as.
<unk> to $14 $3 million from the three months ended March 31 2020.
The improvement was primarily due to the absence of $8 $6 million of expenses incurred as a result of an amendment to our credit facility during the first quarter of 2020.
Again on a sales type lease of $5 $6 million as part of our ERP offerings recognized during the first quarter of 2021.
The decrease in general and administrative expenses, resulting from reductions in staff and other cost cutting measures implemented in April 2020 in response to the COVID-19 pandemic.
And the previously mentioned increase in gross profit.
We also reported $500000 of gains and losses on sales of fixed assets and other operating income from <unk> services.
<unk> from the commencement of operations at the Gibbons Creek <unk> project.
These increases were partially offset by the absence of $3 million of income from discontinued operations net of tax and an increase in transaction related expenses and other items of $800000.
EBITDA increased $8 $1 million or 562% to $9 5 million for the three months ended March 31, 2021 compared to $1 $4 million from three months ended March 31 2020.
The increase in adjusted EBITDA is due to the previously mentioned gain on sales type lease.
The decrease in general and administrative expenses the increase in gross profit and the gains and losses on sales of fixed assets and other operating income from <unk> services.
These changes were partially offset by the previously mentioned absence of income from discontinued operations net of tax.
And as I've mentioned on previous Investor calls the accounting for our environmental risk transfer projects is different from that of remediation projects that customer owned properties and.
In addition to the recognition of the acquired <unk> assets and liabilities on our balance sheet.
There are now changes to the income statement, our consolidated statement of operations and the cash flow statement.
On the income statement, you'll see that we've added two lines above the operating income line.
Gains and losses on the sale of fixed assets and other operating income from <unk> services and other operating expenses from <unk> services.
This is where the P&L impacts of our ERP transactions will be reflected.
I'll discuss the cash flow implications next.
Now turning to our cash flow balance sheet and liquidity in the first quarter of 2021, we recognized operating cash flow of positive $14 $1 million.
We made capital expenditures of $1.1 million.
And we received cash and restricted cash from the Gibbons Creek transaction of $34 $9 million, resulting in adjusted free cash flow of positive $47 9 million.
As I referenced above the accounting requirements for our ERP transactions dictate how cash flows are reported.
We believe this necessitated a change to how we define free cash flow in order to align ERP operational activities with ERP cash receipts.
We now define adjusted free cash flow as cash flows from operating activities plus cash and restricted cash received from <unk> transactions, which is included in the investing section of the cash flow statement.
Less cash used for capital expenditures net of proceeds.
We include cash and restricted cash received from NRT transactions and exclude capital expenditures, because we consider them to be a necessary component of our ongoing operations spa.
Specifically reductions to asset retirement obligations or arrows acquired as part of our T transactions results in the use of operating cash flow.
But those remediation activities are funded by cash and restricted cash received from your key transactions that is reflected in investing cash flow.
Therefore to provide an accurate picture of our free cash flows. We include the CRT cash restricted cash receipts to arrive at adjusted free cash flow.
Our cash and restricted cash balances increased to $72 $3 million as of March 31 2021.
An increase of $43 1 million from December 31, 2020, due to the receipt of restricted cash from the Gibbons Creek <unk> transaction.
And for a specific remediation and compliance projects.
At March 31, 2021, we had gross consolidated debt of $169 $8 million.
The increase in total debt during the quarter is primarily due to an increase in outstanding borrowings on our line of credit.
Partially offset by principal payments on our equipment and term loans.
Our liquidity was approximately $39 4 million as of March 31, 2021, compared to $51 $7 million at year end 2020.
The decrease in our liquidity was driven by a decrease in revolver availability.
Due primarily to higher letters of credit utilization and increased borrowings to fund working capital.
Our as reported gross leverage ratio decreased to seven seven times at March 31, 2021 from 11 nine times at December 31 2020.
And our net leverage calculated as net debt to adjusted EBITDA decreased to six six times as of March 31, 2021 from 10.1 times at year end.
Improvements due to higher trailing 12 month adjusted EBITDA.
Next I'll address our 2021 guidance.
As we've discussed in previous calls we provide mission critical services to a diversified base of customers. The majority of whom are investment grade regulated utilities that must continue to produce power through the current economic uncertainties.
So we are not currently seeing any significant disruptions to our business due to the critical nature of our customers' operations. The COVID-19, pandemic and resulting potential for significant business disruptions beyond our control.
That created a higher level of uncertainty, including but not limited to further uncertainties around demand driven power generation.
There are also a timing uncertainties associated with the startup of recently announced customer awards, including ERP Awards.
As with our 2020 results the impact of weather, including Hurricanes, excessive rain or moderate temperatures could adversely affect our results.
We are at this time reaffirming our guidance within the following ranges Rev.
Revenue of $260 million to $300 million net.
Net loss attributable to <unk> solutions, Inc, a $5 million to zero.
Adjusted EBITDA of $35 million to $40 million.
And free cash flow of $33 million to $38 million.
With that I'll turn the call back to Scott.
Thanks, Roger and closing we hope you agree that our growth in contract awards.
Spansion of service offerings, and our laser focus on environmental sustainability will continue to position the company for long term success.
We remain committed to enhancing long term value and positioning ourselves to take advantage of the expanding market opportunities.
We'll continue to strengthen our balance sheet and reduce our debt levels and improve our leverage ratios.
Importantly.
We are closely aligned with our power generation partners, environmental remediation and sustainability initiatives, which should provide <unk> solutions with significant growth potential for many years to come.
Thank you again for your interest and participation with that operator, let's begin the Q&A session.
At this time, if you would like to ask a question press star one on your telephone keypad again that is star and the number one for questions. You do have a question from the line of Michael Hoffman.
Thank you very much for taking the questions and nice to begin moving into the year.
But to that could we talk about cadence because if I think about guidance at the midpoint.
You basically did 25% of your EBITDA in the first quarter, but you only did 20 per cent of the sales. So just.
Just to get this out there.
We're going to see our revenue trend improving but the actual margin may come down based on mix.
Okay.
Low through the remainder of the EBITDA for the year, but continue to expand into the midpoint of the revenue.
Yeah. Good morning, Michael This is Roger Thanks for the question.
I think one of the thing that I would point to when you look at the.
EBITDA for the first quarter is the is that the gain on the sales type lease associated with them within NRT transaction. So we've got we've talked about increase in <unk> <unk>.
<unk>.
As we discussed in the press release and Scott's comments.
Just mobilized on the Gibbons Creek.
But youll recall, we had a transaction that we thought or had expected to close.
In Q4 of last year, but that could slip we talked in our year end call on March 24 does that in fact did slip so we.
We did adjust our guidance for EBITDA based on net closing in the first quarter, which it did so that's that's kind of the primary driver of a.
Kind of a single item, that's positively affecting EBITDA for the quarter.
But youre right the cadence.
Wood.
Would pick up in terms of sales over the.
The next couple of quarters.
And then probably expect to see typical seasonality even in the fourth quarter again.
Just so everybody is clear on how to follow the model through pull out five six.
The association of the sales to EBITDA proportioning over the quarters. It makes a lot more sense.
That's right okay.
And then.
Are you all.
Filed an S. Three on the behalf of BCP Backburner capital partners.
I remember from the IPO they have registration rights and they can have an impact for us at any time so they have.
They've asked for all of the shares which is interesting. So I'm curious if you could give some of it.
Perspective on why all the shares when line what is their plan.
Selling some of its a bad idea it would help the liquidity, but what is their plan.
Hey, Thanks, Michael This is Scott good morning.
No Youre exactly right, we did have a pre existing registration rights agreement with BCP.
They exercised that right obviously.
To have their common shares registered under the S. Three that we filed yesterday.
And although it's not in stone and.
Third effective by the SEC. So that that is a process that has to go through.
But as it relates to the business and where we see it go obviously that we cant say a lot on the subject. We can also can't speak for.
BCP.
<unk>.
But were not currently aware of any specific plans that BCP has to offer.
Any of their shares for <unk> solutions for sale.
But I think your point that you just mentioned.
Focused on liquidity I think we can all agree on that.
Any potential shares.
<unk> would serve to improve our trading liquidity and it also broaden.
The base.
Of our shareholders, which we believe will be a positive so excited to see more folks coming into the.
Into the stock.
And.
Are there any indication of.
Of our ratable plan like <unk>.
I've got that right I always get that acronym wrong, either 10, 5 billion <unk> five but anyway, you know what I mean is there any thoughts about putting a plan like that and it just becomes a very programmatic.
Yes.
Yes, Michael I guess I think.
Scott and I would probably be.
Speculating on that a little bit it would probably be maybe an intelligent speculation.
Again, not having specific knowledge, but obviously they.
BCP remains.
On the board control of the board and such are considered insiders.
Shareholder rights agreement as you know as we referenced so are our again our guests.
Would be that thats, something that they would that might be a logical approach that they would take again, we're not aware of any.
The program already.
No specific plans to do that and I guess related to your question on.
Doing all of it versus.
Just blocks of shares at a time I think.
Justin.
Kind of brief conversation when they provided the direction I think.
They acknowledge that they.
While they don't have specific plans they thought it better just to kind of rather than create questions are doing piecemeal just exercise their right in and just kind of put it all out there won't solve all day.
Certainly.
I wouldn't expect them to do.
As we discussed anything specific until we know of.
Okay.
And then there are there is some change of control language in the room.
Our revised credit agreement so they couldnt do it all at once anyway right.
No.
That's a great point absolutely right. There are there are certainly our limitations.
Under the credit agreement so.
Theyre very specific limitations on.
What they can do and there is also other.
You kind of limitations related to.
Section three two.
The tax on Nols so.
We've obviously made them aware of that.
Okay Alright.
And like I said it would.
Bad get some incremental liquidity in the market.
Absolutely.
Scott said, we see that as a positive.
Obviously, you've seen the <unk>.
Trading volume pick up from what it has been certainly more interest. So we see any anything that would increase the liquidity is positive okay, and then with regards to byproduct sales.
Kevin.
Fossil services relationship to utilities.
Think a pretty good feeling for the rate of generation. So are we flow generation activities start to recover and therefore are enough assets being produced.
To support a recovery of the byproduct sales revenue.
And Michael we saw your note yesterday evening and.
Again kind of reiterate how it kicked off the comments, it's a good start to the year overall as a company we did have a lag on the <unk>.
Byproduct sales.
Syed.
Fair bit of that due to weather and low production, but as we see the rest of the year play out.
We're hopeful and our expectation is that we continue to see an upward trend typically the first quarter is a low quarter on the byproduct sales side, just from a generation as well as a demand perspective, and we see that ramp throughout the.
The remainder of the year and we fully expect that to happen this year as well.
Okay and then.
<unk> shared in the Q.
Our revenue comparison year over year to March by byproduct construction and then services do you have the same breakdown for <unk> 'twenty. So at least we are no what we're comparing to in <unk> 'twenty.
We can certainly.
Provided that we go back to the.
So from through the carryover Corp.
We have that at our fingertips and we can certainly get that to you.
We will be reporting that net revenue footnote each quarter.
I mean for the guys have to make a living and modeling.
I'm comparing two helps.
So if.
I wanted to love that data just for <unk>, but if it was possible to do an 8-K and just put out a table that showed it for.
Remainder of the quarters in 2020 that would be very helpful.
Yes, we can make sure we get out there in the future and if we if we can get this before we end the call. We'll certainly tell you that but we'll certainly get you will provide that okay. And then last question from me, what's the visibility on any of your <unk> contract opportunities.
Now managed to expunge MP six to 18 from my brand but.
Yeah.
But no Michael Good question, we're continuing to advance conversation with multiple customers too.
Really moving forward at a good pace.
The report also we're getting good feedback on financing options as well.
So that's really moving in a positive direction.
I hope would be that at least by the.
Q2 call, we're able to.
Publicly report from some really positive news there but.
Good continued.
Great reception from customers and from a testing perspective.
Perspective.
And as you know we kind of.
We're kind of slowed through COVID-19 based on some <unk>.
Third party financing.
Opportunities there that's picking back up and just seeing a lot of positive reception there so hopefully.
Reporting some really good news to you here in the near term.
Rob just to add to that.
As you know we published the.
Our inaugural ESG report and that reported environmental social governance and that we've talked a lot about the sustainability and recycling and specifically embarrass source.
And I'll, just coincidental or not but we've certainly seen.
A great deal of increased interest and some specifics around financing, which had been more of a challenge last year, obviously are.
Improvement in our balance sheet over over the past year.
That has not hurt either so we're very optimistic about the way that's that's moving right now.
Yes, I would think mulch.
Multiple drivers here, one you hit the sustainability button, which is huge to the cement industries.
Land.
Given the housing cycle, that's going on and they forget anyway infrastructure spend real infrastructure.
I would think that only increases.
Your cost advantage.
Providing them materials.
As an offset to that.
Virgin approach so.
Michael Youre spot Youre spot on.
We're very excited to see the infrastructure Bill and then also you may or may not have seen the Portland Cement Association came out.
Here recently in projected.
2021, and 2022 to be.
Increasing year over year from a.
Man's perspective in all of those things are good tailwind for us.
Terrific. Thanks for taking my questions can I start from here good luck for the rest.
Thank you Michael.
Okay.
The next question is from Tony of ours.
Hey, good morning, Tony Yes, hi, good morning.
We've heard a lot about in place and then tightness in supply chain.
Are you.
You can cut back.
Sales and perhaps some staff during the slow period do you anticipate any bottleneck for being able to.
We ramp.
The wins that you hope for come through.
Yes, Toni Thanks This is Scott.
Good question I know Theres a lot of.
Tightening.
Across the country and across the globe from a supply chain standpoint, and you're right. We did take the right measures.
In 'twenty.
<unk> 19 in 2020 to rightsize, our staff, but as we as we move forward.
We are still going to be able to.
Deliver our materials and supplies and services to all of our customers and we don't see any day.
Disruption there as far as.
The <unk> team's concerned on this end.
And the April 11th state sort of came and went.
Here behind the scenes that that is motivated more.
Potential customers to take it to the next step in terms of Rfps.
The CCR rule April 11th deadline on the CCR rig I assume is what youre asking about exactly.
Yes.
And we continue to see out there regardless of deadlines.
I think that we're continuing to see.
Positive trends regulatory trends at both the federal and the state level and I think as we've reminded folks in the past a lot of the activity, we see driving new Rfps and New awards and new business for US is really coming from the state level and really coming from.
The specific drivers in those regional areas, where environmental groups as well as.
State regulators and utilities are all partnering together to drive to.
Our conclusion and typically that conclusion is the right conclusion, and it's one that involves a remediation and recycling. So so yeah no no no impact on the April 11th date.
Tony It's Roger I would just add a little bit we did reference it.
Sue did referenced this in our.
Our press release talking about kind of this next wave of.
The new business that we see coming obviously the utilities.
About the April 11th.
Deadline under the CCR rigs they have prepared and have been preparing we've seen kind of a wave of day large utilities that we've consistently talked about and obviously have recently.
Given some award announced some awards on.
But going forward I think.
What we mentioned in our press releases kind of seeing.
The next wave of medium to smaller size that would kind of manifest in remediation compliance contracts as well as ERP. It said that day.
Environmental risk transfer.
Model is very well suited for some of the.
Participants of that type, especially the use of the medium to smaller sized so.
Kind of referenced at both places talking about the next wave as well as kind of opportunities we're seeing within <unk>.
Great and has there been anything thats traded away from you that surprised you or should we still believe that.
Your.
Right.
The.
<unk> 30 per cent kind of range.
Yeah. Thanks, Thanks, Tony.
Nothing nothing surprising on that front that we werent already predicting or thinking about.
We've never thrown a number out there on win percentage, but I will say, we're still confident we're going to.
When our win our fair share or more than our fair share hopefully as we as we move forward.
$3 billion or 7 billion there were large numbers so.
Yes.
Really are Tony and that's what excites us.
Again, that's $3 billion.
We're already kind of noodling on and then $7 billion in that near term as I've mentioned in the prepared remarks, it will be proposing on between now and the end of 2022.
And to Roger's point on that.
Related to ERP.
There is continued upside on that side of the business for us.
As we move forward as well that's not really contemplated in those numbers. So.
We feel very confident about the future of the business.
2019, 2020, both be in record.
Award years for Us on New award generation and we're really.
I'm excited to the start that we got this year and our ability to to eclipse 2000, twenty's record as well.
Thank you very much stay busy.
Thank you operator, if I could before taking the next question I just wanted to circle back to Michael Hoffman's question on on the breakdown for Q2 2020.
Numbers by by the different categories.
For Q2 2020.
The revenue was 52 million three or four in total and the way that breaks down is that byproduct sales was $21 million $400.
Construction was $15 million $3 47, and services was 15 million $5 57, and that comes to the 52 three or four so I just wanted to close the loop on that question.
And your next question is from Craig Samuels.
Good morning, guys. How are you. Thanks, how are you.
Hey, good thank you.
Relatively new to the story.
And I'm, hoping that you.
You can quantify a little bit.
On the borrower source front, what a typical deal may look like.
Craig.
It is not really something that we have put out yet.
We have.
I guess, the easiest way to say that is that.
There isn't necessarily a typical deal with.
With the utilities, we've consistently talked about the fact that.
We believe our embarrass source.
Cost profile, certainly pencils out.
Very very favorably to the competition, we've talked about view that very high cost of the competition.
Being.
Essentially like a mini power plant or kind of a one size fits all.
They tend to need to be subsidized by the utility in order to even make sense at all and even then they are often driven by regulations, whereas.
<unk> source is.
Modular and scalable it is at a kind of a I'd say a fraction of the cost basis without giving you specific numbers that app that we've not given publicly for competitive reasons.
A fraction of the cost of.
The competitive units, but when I say, maybe theyre not typical.
We have some utilities that in fact, the one that we are negotiating on now would be a situation where we.
On the equipment and provide and financed equipment there are others that we're in discussions with.
Where we.
Sure.
The utility would.
Be able to finance it under there.
Under their Capex program and get.
Get rate payer relief for it so theres many different models.
It could even be.
<unk> with the end use customer reflected ready mix. So that's the beauty of it.
It's going to meet the demand where there is more and more plants are taken offline in the supply of live coal ash diminishes.
You need to be replaced.
And it is just a fantastic way.
Way too.
Both do a remediation at a kind of a scalable level and it gives the utility a lot of options to get a win win to clean up their side as well as the very positive.
PR from being able to take it out of the ground and recycling.
Got it.
Do you plan to provide additional color going forward.
Okay.
Yes, I think yes, I mean, I think you'll be able to see depending on the on the <unk>.
The type of structure that I just defined.
You would see things in our financial statements, especially if we owned it you'd see that come through in our balance sheet.
But we won't talk about that now I would just caveat that by saying that.
We're not going to come out and say exactly what these costs.
For competitive reasons, but.
What are what we had discussed and what our plan is that we would be constructing these in deploying these.
In markets and regions, where the price per ton of spec fly ash is higher and you think about kind of the.
Rockies West.
Things like Texas, Florida, the northeast basically areas to where there is not a live supply.
Of.
Fly ash, but certainly a large demand from an infrastructure and construction building perspective, that's where they really pencil out nicely.
Got it.
Alright, I haven't seen anything.
Regarding.
Toxic wastewater and as you know in Florida, there has been a lot of media discussion.
Surrounding the wastewater reservoir near collapse do you guys have an offering.
<unk>.
Total wastewater remediation.
So that's a good question Craig and we've been following everything in Florida as well so from a wastewater perspective.
No that's not something that's in our core.
However, we are watching closely.
The situation down there I believe it's Piney point.
And how that impacts all of those other than.
Impoundments in Florida as well because.
Our suite of services that we use from a remediation.
Recycling standpoint kind of fit nicely down there as well we are working down there on some similar type projects.
And we will continue to watch what happens from a regulatory standpoint.
On that basis, so that could definitely be something that we move into in the future.
But as far as wastewater peer wastewater treatment is concerned thats not something that we focus on.
Got it okay.
And then as far as the competitive landscape.
Somebody mentioned, although you haven't explicitly stated that your win rate is around 30%.
Sure.
I'm not sure I've seen any other public company.
That you compete with.
Sure.
Comping purposes, so who exactly.
The other 70%.
Yes.
Youre exactly right, there's no one that cut that the comps to us.
Theres really no one that offers a full.
The depth and breadth of the services that we that we do when you think about all the different services that we provide our customer base.
Our our sole focus on.
<unk>.
Remediation compliance byproduct sales ERP all of these things that we do it at a very high level of safety and quality and performance.
So theres really not a straight comp, but when you you asked the question about.
Who's winning other projects, it's very fragmented.
On a service by service basis.
And it's also somewhat fragmented.
Geographically when you get into some of the service offerings. So.
No one providing all of the services at the same.
The scale and depth that we are for this customer base.
Got it and then on the $3 billion of pending proposals when would you expect to have answers.
Yes.
3 billion continues to.
<unk> be fluid we win some we lose some over the course of the.
The years, so I mean, I think that that's something that we would hope to cycle through some of those here.
Here in the next.
Year to two years and then we will just start bidding on the other 7 billion here as well that we've talked about and hopefully get proposals in hand.
By the end of like we said before between now and the end of 2022.
Got it.
And then last question, it's kind of a.
A bigger picture.
You guys went public in 2018, so just a couple of years ago.
And your 12 $12 per IPO.
Gross tons in your shares dropped.
Considerably lower than that.
Mobile back upwards I'm wondering if you could give a little bit of.
Of a bigger Tam perspective on what the company looks like at the time of IPO and what the Street's excitement was.
Versus where you are now with the stock cut in half I think your balance sheet.
Considerably better.
<unk>.
All of your lines of business is trending in the right direction and have been divested.
The one business.
Are you able to just give a little bit of perspective as to where you were then and where you are now.
Yeah, no. Thanks, Gary Great question.
2018 as long in our rearview mirror.
Now and I think Theres a lot of.
Documented high highs and lows between.
18 in today and what we're really excited about as you mentioned we divested.
The one portion of our business at the tail end of last year, and it's really allowed us to focus on.
<unk>.
And pivot the business to have that laser focus on where the growth is.
Around.
The remediation remediation compliance a byproduct sales all of the legacy <unk> business, where we really see those tail winds and we really see that large addressable market.
So thats really where we are today a lot of transition in that time period and as you stated we've really cleaned up the balance sheet really put ourselves in on strong footing as we move forward year over year of New awards and.
We're really looking forward to the future here.
Alright, great. Thanks, so much.
Great. Thank you.
There are no further questions at this time.
Alright, Thank you operator, and thanks, everyone else for joining I appreciate the interest as always and look forward to speaking with everyone again in.
August thank you.
This concludes today's conference call you may now disconnect.
Yes.
[music].
All right.
[music] flow.
Okay.
Yes.
[music].