Q2 2021 Charah Solutions Inc Earnings Call

Good morning, ladies and gentlemen, and welcome to sharra Solutions, Inc, second 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 like to now hand the conference over to Steve Rim, vice president of legal Affairs and corporate secretary

Shower Solutions, please go ahead.

Thank you, operator. Good morning, everyone and thank you for joining us today. We appreciate your participation in our second quarter, 2021 earnings call and we look forward to sharing our prepared remarks and answering your questions.

We hope you have had a chance to review. The press release. We issued yesterday, after the market closed, if not, you can find the press release as well as the supplemental investor presentation. You may follow during our prepared remarks on the investor section of our website at www.ge.com or IR. Shara.com, joining me today on our call, our Scott Sewell, president and chief executive officer and Roger Shannon Chief Financial Officer and treasurer.

Following their prepared remarks, we will conduct a customary question-and-answer session before we begin, I would like to remind you that our remarks regarding Charlotte 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 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 filing with the Securities and Exchange Commission, including our quarterly reports on form 10-q and our annual report on form 10-K. We disclaim any obligation to update these forward-looking statements except as required by law.

During this conference call, we will refer to certain non-gaap Financial measures we provide reconciliations to the nearest apple gap measure in our earnings, press release and supplemental presentation again. Thank you for joining us today. Now, I would like to turn over the call to Scott Sewell or president and CEO Scott. Thank Steve, and good morning everyone. Thank you for joining us for our earnings call today, during the second quarter, we continue to capitalize on opportunities.

These first significant new business. We also posted strong financial results for the quarter and expect this to continue in the second. Half this morning, I'll briefly review. Our progress has quarter and winning Awards in advancing our projects. I'll also update you on our bid pipeline are ESG initiatives and recent additions to our board of directors. Roger will then review our financial performance during the quarter. You will also review our plans for refinancing our bank debt, which we see as a path to

A highly successful year so far in terms of do Awards, which total 685 million dollars through early August. This puts us on Pace to significantly exceed the 715 million dollars of new Awards. We received in 2020, which was a record year for us.

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 a reputation experienced and resiliency of our industry-leading team. The total this year to date includes a hundred fifty 8 million dollars of new Awards received. Since our first quarter earnings call in mid-may,

We improved Financial flexibility to grow our business.

He's recent Wards are across all our business lines, remediation compliance fossil Services by product sales and environmental risk, transfer, or CRT Services, our ERT Services, businesses continue to be a compelling, One-Stop solution for our customers. Looking to address, the environmental and economic challenges associated with retiring, older or less economically viable.

Viable fossil generating assets. We are excited about the potential to grow this business. In may we reached a binding agreement to acquire the Avon Lake plant in Ohio from Jen on when the plant ceases operation in April of next year, Avon Lake is a 627 megawatt coal. Plant along Lake Erie. We will assume responsibility for demolition of the plant and environmental remediation and sustainable, Redevelopment of the site, as we are doing and are Givens Creek, erdc

Project in Texas. Speaking of Gibbons Creek, during the quarter. We continued to ramp up activity at the site. Demolition of plant is underway and is expected to be largely completed this year. Remediation of the ash ponds is ongoing and on schedule we are nearing finalization of the Redevelopment plan for the site. We also continue to ramp up activity at the large remediation projects in the Southeast on which we started work. Earlier this year. These include a coal ash

Project for dominion and energy into long-term, Ash Pond closure by removal projects, for a major Southeast utility these and other remediation projects are on track.

The new business Awards we have received.

Which total 1.4 billion dollars in 2020 and 2021 to date position us for strong growth, in Revenue, earnings and cash flow this year. And next, a significant portion of these awards are large projects that will take several years to complete.

As a result, our weighted average remaining contract life has increased to approximately 6 years currently from approximately 3 years in 2018.

This extended contract, life provides greater visibility and durability of Revenue, earnings and cash flow. And we have had in the past.

Notwithstanding the significant Awards we have received already. We still have approximately 4 billion dollars of pending proposals on which we expect to hear over the balance of this year and in 2022.

As I noted, we expect additional War announcements in the second half that should result in another record year, for us.

We also have identified close to 7 billion dollars of opportunities across our businesses.

We are optimistic about the prospects for converting, some of these opportunities into additional new business, that will further add to the predictability of our Revenue stream and layer on growth. Well, into the future.

The regulatory environment continues to be very favorable for our business. As we have discussed on previous calls, states are continuing to become more prescriptive regarding the means and methods of Ash Pond, remediation, at the federal level, we believe the Environmental Protection Agency under the by demonstration will accelerate, its efforts on regulatory requirements beneficiation, guidelines, and Ash, impoundment closure deadlines.

Is 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 utilities and power generation companies deliver on their impoundment, closure, requirements, and needs.

In addition, the Biden Administration has proposed a trillion dollar investment in infrastructure. Over a multi-year period. The bill has bipartisan support. If enacted we would expect our by product sales business could benefit over time from increasing demand for concrete as fly as serves as an attractive economic and environmental alternative to Portland cement in the production of Ready, Mix Concrete and concrete products.

Next, I'd like to touch on resu initiatives as we noted in our inaugural EST report earlier. This year sustainability, is at the heart of our business.

We practice resource conservation and Recovery through the beneficial recycle and of coal. Ash Ash impoundment, closure services and the remediation and Redevelopment of land for community and commercial use these activities reduce greenhouse gas. Emissions, decrease landfill disposal conserve natural resources and protect our waterways

In the report we laid out 2021 objectives in the key areas of environmental data acquisition and Reporting capabilities.

Diversity, inclusion and safety. We are on track or ahead of plan with respect to these goals.

To cite just a few examples.

On safety, we enter took steps to improve the quality of site, inspections and observations, to focus on the quality of our near-miss reporting and unsafe some observations.

Also, we have maintained our excellent, safety record with zero lost time, injuries this year to date, and a total recordable incident rate of 0.3 to which is below our goal of .46 or lower.

In terms of our mental, we have implemented cross training sessions at the site level to increase both the amount and quality of site Audits and inspections uter date. We have not received any notices of violation or notices of deficiency. I'm data acquisition and Reporting. We are developing and implementing methods to track our consumption of water, electrical energy and fuel, and our production of disposal of waste. We are also looking for ways, to reduce our water consumption, or use recycled water.

And another important.

I'm pleased to announce that since our first quarter earnings call, we have added 3, highly qualified individuals to our board of directors.

Dennis Whalen joined our board of directors effective at our annual meeting in June.

Either retired, senior partner of KPMG and brings more than 35 years of Global Experience and driving Innovative growth aligning risk of strategy and developing Dynamic Talent.

Dennis serves as a trusted advisor to senior leaders and board members across the energy construction, industrial manufacturing and Life. Sciences Industries in both developed and Emerging Markets. He also has expertise in shaping governance strategy to create long-term value and to unlock the power of diversity.

Timothy Allan Simon joined the board in. July Timothy is an attorney with more than 40 years of experience primarily in the public sector.

He had a deep understanding of the energy and utility Industries having served on the California Public Utilities Commission from 2007 to 2012.

More recently. He has been a consultant on utility infrastructure financial services and Broadband projects and has been a frequent public speaker on energy infrastructure, diversity and inclusion.

We expected Timothy's background and experience will be tremendously helpful to our board and management team. As we continue to provide innovative solutions to our customers, while accelerating business and financial performance.

Kenneth M, young doing the board effective with our Equity, issuance to be Riley.

Which closed last week, Kenny is president of be Riley, financial and CEO of be Riley. Principal Investments, he has more than 30 years of operational, executive and director experience, primarily within the energy Communications and finance Industries on a global basis. We look forward to his contributions to our board.

Before turning the call over to Roger, I'd like to thank our dedicated Storage Solutions. Employees, you are working every day to help our customers ensure service reliability and to 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. Shane, and our CFO. Thanks Scott, I'll continue the review of our financial results and provide an update on our cash flow balance sheet equality in 2021 guidance ascott noted, I will also address are refinancing before reviewing our second quarter and year to date results. I would like to remind you that the accounting treatment for rert services is different from our 3 other lines of business profit.

Lost results for ER, T services or captured into lines. And

Income statement gains on sales of property and Equipment net and other operating expenses from ER T services.

Thus the ERT business is not included in our revenues or our gross profit but is included in operating income and adjusted even doc.

I'll start with our second quarter 2021 results.

For the second quarter Revenue increased 11.2 million dollars or twenty 1 percent 2, sixty 3 point 5 million dollars as compared to fifty 2 point 3 million dollars for the second quarter of 2020. This increase was primarily driven by a 16 point 4 million dollar increase in remediation and compliance Services, revenues from the commencement of new project work. Partially offset by a 3.2 million dollar decrease in fossil Services Revenue.

Due to project completions and a 2 million dollar decrease in, by product sales, due to an increase in shipping rates and the dissolution of our joint venture in Ash Ventures LLC, in the second quarter of 2021.

R22 gross profit, increased 1.7 million dollars or thirty 3 percent to 6 point 9 million dollars is compared to 5.2 million dollars for the second quarter of 2020.

This increase was primarily driven by an increase in gross profit for my remediation and compliance services from the commencement of new project work and better gross profit margin on our by product sales during the second quarter of 2021 partially offset by a decrease in gross profit due to the dissolution of our joint venture in - Ventures LLC in the second quarter of twenty Twenty-One and a decrease in gross profit on our fossil Services business due to project completions

The net loss attributable to char Solutions. Increased $600,000 or 18% to 4.2 million dollars as compared to 3.5 million dollars. For the second quarter at 20:20. The increased loss was primarily due to the absence of 3.8 million dollars of income from discontinued operations. Net of tax recorded in the year ago. Period other operating expenses from ERT Services of 1 million dollars.

And a 7 hundred thousand dollar increase in general administrative expense.

Discontinued operations, reflect our allies subsidiary, which we sold in November. Twenty twenty these negative variances were partially offset by a 1.7 million dollar increase in gross profit as previously, discussed and gains, on sales of property equipment, resulting from the commencement of operations at the Gibbons Creek, ERT project and the completion of an asset purchase agreement with a third party for the sale of certain grinding related assets,

Q2 adjusted ebitda.

Kris 2.2 million dollars to 6.5 million dollars, compared to 4.2 million dollars. The second quarter of 2020.

For the 6 month, period ended June 30th 2021. I results were as follows

Revenue increased 12 million dollars or 12% to a hundred and fifteen point 6 million dollars as compared to a hundred and 3 point 6 billion dollars for the first 6 months of 2020. The increase occurred mostly in the second quarter and was primarily attributable to the ramping of new remediation and compliance projects in a second quarter.

By product sales decreased in part due to the probable impact of the COVID-19. Pandemic on power generation levels in the first quarter of the year as compared to pre-pandemic levels in 2020 and 2 other factors fossil Services Revenue decrease slightly due to project completions.

Gross profit, increase 2.4 million dollars, or twenty 4 percent to 12.5 million dollars as compared to 10..1 million dollars for the first 6 months of 2020.

The increase occurred mostly in the second quarter and was primarily attributable to an increase in gross profit for my remediation and compliance Services due to new project work, partially offset by lower gross profit from by product sales and fossil services.

Net loss attributable to share our Solutions, decreased twelve point 3 million dollars or 69 percent to 5 point 5 million dollars as compared to 17 point 8 million dollars for the first 6 months of 2020. The decreased loss was primarily due to the absence of expenses associated with amending, our credit facility in 2020, a gay on a sales type lease gains on sales of property and Equipment net, partially offset by other

Property expenses from ERT Services, the increase in gross profit and slightly lower General and administrative expenses.

These positive variances were partially offset by the absence of 6.8 million dollars of income from discontinued operations. Net of tax recorded in the copper bowl 2020 period.

Adjusted ebitda increase 10.3 million dollars to 16 million dollars as compared to 5.7 million dollars for the first 6 months of 2020.

Now turning to our cash flow, balance sheet and liquidity, operating cash flow declined to negative 3 point, 8 million dollars in the second quarter of 2021 from positive. Twenty 7 point 5 million in the second quarter of 2020.

The decrease was partially attributable to the absence of cash flow from discontinued operations, which was significant in the second quarter of 2020. During the second quarter of 2021, we made 1.3 million dollars of capital expenditures and we received 3 point 8 million dollars of cash from the sale of property and Equipment. Net resulting in adjusted free cash flow of negative..1 point, 3 million dollars.

For the first 6 months of 2021.

Operating cash flow increased 1 million dollars to 10 point 2 million dollars from 9.2 million and comparable 20/20 period.

The increase was primarily attributable to favorable changes in working capital partially offset by non-cash adjustments to income.

During the first 6 months of 2021, we made Capital expenditures of 2.8 million dollars. In terms of inflows, we receive thirty 4 point, 9 million dollars of cash and restricted cash from Gibbons creaky RT, transaction and 4.2 million dollars of cash from the sale of equipment resulting in adjusted free, cash flow of forty 6 point 5 million dollars.

Our cashier restricted, cash balance has increased to 50.7.7 million dollars as a June thirtieth. Twenty Twenty-One an increase of Twenty 8 Point 4 million dollars from December 31st 2020,

The increase was primarily due to the receipt of restricted cash from the Gibbons creaky RT, transaction. And for a specific remediation and compliance project.

A June 30th 2021. We had gross consolidated debt of a hundred and sixty 4 point 8 million dollars. The 5 million dollar decrease in total debt. During the second quarter is primarily due to a decrease in outstanding, borrowings on our line of credit and principal payments on our equipment in term loans, partially offset by new equipment loans and capital leases,

Our liquidity was approximately thirty 7 point 8 million dollars as of June 30th 2021 slightly lower than the thirty..9 point 4 million at March..31st 2021.

Our as reported gross, leverage ratio, improved a 6.6 times. In June thirtieth, twenty Twenty-One from 7.7 times at March, 31st, 2021 and our net leverage ratio is calculated as net debt to adjust. It ebitda improve 25.9 times as a June thirtieth, twenty Twenty-One from 6.6 times and March, 31st 2021

Note that our credit facility. Leverage calculation is different from our as reported leverage calculation and although we did not meet before point 8 times Covenant required by our credit agreement, our credit facility, libraries with significantly closer to that level than are as reported Leverage.

We did not meet the credit facility leverage test because our net debt levels at June 30th were higher than we had. Anticipated primarily because of timing of certain budget assumptions. We also did not meet the fixed charge coverage ratio although we were very close to meeting it.

We are appreciative of the support by our lenders who agreed last week to a waiver of the required. Financial Covenant for June 30th 2021, an amendment to such covenants for September thirtieth twenty Twenty-One as consideration. We repaid an additional 5 million dollars of outstanding loans under the credit facility and a previously accrued 2 million dollar fee associated with a previous Amendment the credit.

Aunt, which otherwise would have been due at maturity in 2022.

The amendment increases our near-term, financial flexibility, and allows us to focus our efforts on a plan to address the structure and maturity profile of our debt. As you may have seen, we are working on a plan to refinance our existing debt. I look forward to sharing more information with you in the future but under Securities laws, I'm constrained as to providing additional detail to you today. On this call.

Of course our plans are subject to market conditions, and other conditions.

As part of our refinancing plan be issued approximately 2.9 Million, common shares to be Riley as a price of 4 dollars and fifty cents per share for proceeds of approximately 13 million dollars.

In addition, we are working with a leading National Bank, to put in place, an asset-backed lending facility post, completion of this planned refinancing as the anticipated new. Refinancing does not provide for security interest in our assets. We would be less constrained. In terms of undertaking, new equipment or project-based barley, which would be beneficial in financing our future growth,

I'll conclude by addressing guidance at this time. We are reaffirming our full year 2021 guidance within the following ranges revenue of 260 million to 300 million dollars, a net loss attributable to sharra Solutions Inc, 5 million dollars to zero adjusted ebitda 35 million dollars to forty million dollars and adjusted free, cash flow of 33 million dollars to 38 million dollars.

G.

As we look to the second half of the Year results should benefit from increased contribution, from our Gibbons creaky RT project relative to the first half of the Year recall that this will be reflected in operating income and adjusted ebitda though not in revenues.

Another driver of second half results is the continued ramping of recent new Awards, including large remediation and compliance projects. In addition, we expect to see Improvement in certain ongoing projects that experienced adverse weather or other issues. During the first half of the year.

As I noted, our 2021 guidance for adjusted free cash flow is in the range of 33 million dollars to thirty 8 million dollars results. For the first half of the year were forty 6 point 5 million dollars, which implies that we expect the second half results to be negative.

This expected outcome is primarily attributable to the timing of cash inflows and outflows at our Gibbons. Creaky RT project. Recall that we had thirty 4 point 9 million dollars in receipts of cash and restricted cash. When we close this transaction to February of this year, the cash outlays for Demolition and Remediation ramp up over the balance of this year in continue into 2022.

As we've discussed in previous calls.

Our guidance is predicated on certain assumptions which are discussed in more detail in our earnings release with that. I'll turn the call back to Scott. Thanks, Roger in closing, we hope you agree. That our growth in contract Awards expansion of our 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, take advantage of the expanding Market opportunities, while continuing 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 Charles 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 please press star. Then the number 1 on your telephone keypad to withdraw, your question, press the pound key.

Please hold while we compile the Q and A roster.

Your first question comes from the line of Tony, Bowers with intro Act.

Roger nicer progress on the quarter. I haven't heard anything about in virus Source in the past. We've talked about this being a, a nice Competitive Edge For You winning business and I believe you put quite a few samples for different Prospect clients through your pilot facility. So can you give us an update on how that's looking?

Sure. Good morning Brian or Tony. Sorry appreciate the question. Definitely something that we're obviously busy in the corner and a lot of things and you know viral sources 1 that we continue to be laser-focused on especially when we we talk about all cover our ESG initiatives and everything else. So continue to make very good progress on a viral Source working closely with to potential customers here.

Throughout the back half of the year so to bring 1 to Market. So hopefully, you'll be hearing some more updates on us as we move forward. But really 1 of the exciting things are..1 of the things that excites me about the, the work we're doing on refinancing and restructuring. Our, our debt is going to provide us some more flexibility. I know Roger and his prepared remarks, you know, gave a little

Insight into that.

I can't discuss the details of our playing as you can appreciate, due to SEC guidons, but we're really excited about the flexibility growth opportunities that are our new new planes. Going to give us rogering anything else you want to add? That's right, I'd completely agree with that. Will obviously be able to talk more later, but I would refer everyone to the, to the filings that we put on the SEC yesterday, evening, along with their earnings release. But

Certainly looking forward to, you know the increased flexibility, we expect to have once we finalize that and will be very supportive of these technology initiatives and we talked in the last call that we did have some financing alternatives on the table and and those remain. But we've kind of been as we work with our potential customers could have been working with these providers and kind of holding back until we have a better view on.

What will be able to deal with in the future? Which we think will be significantly better, but the long story short interest continues to be strong for viral source and hope to have something soon though. The to interpret this, the ability of you to actually provide in virus or Soph, your own balance sheet that will remove an impediment to implementation. That's correct. That's right.

Thank you. Thank you Tony. And and sorry for the mix-up early on there. I was looking at the queue and Brian's name was on the cue and you were coming through so appreciate the question as always.

Your next question comes from the line of Ryan. Butler with stifel

morning, Brian.

Revenue, and just kind of talk.

Sure. I think 1 of the things that we stayed at least in the in earnings call, it was really reaffirming guidance, we can do to be very confident in the in the back half of the Year. Our plan we nuke. You do was was not going to be 1 of our best quarters for the year and things are going to shift kind of quarter to quarter here but still feel very

Very solid of where we're going to weigh in the balance of the year. You know, a revenues between 260 million and adjusted ibadah between 35 and 40 million. So still reaffirming the the balance of the year and as our projects ramp we are going to have a strong back half Roger if you want to talk a little more on the details of the back half,

Yeah, I know it's, you know, we in our budget, we had expected an uptick in the contribution, from the ERT projects. As, you know, as we talked about the ERT projects, do not flow through revenue and gross profit, but rather go through 2 new lines on our on our P, they'll gain on sale of property and Equipment net. And then the offset is other operating expense for me. Artie Services. You know, we did have

We were impacted significantly.

In queue to buy some weather events at the at the Givens Creek property. So the you the contribution for that second quarter was less than expected. But things have been kind of picked up and kind of rescheduled through the rest of the year. So that is a recovery that we expect to make over the over the course of the year. You as you look at the different segments, you know, across the the quarter and year to date and going forward, we have obviously we had

Ed a very strong quarter and Remediation compliance just under 32 million of Revenue compared to 19.9. + q1 that reflects the ramp up of these new awards that we've talked about by product sales. We had a sequential Improvement to just under 20 million for Q2 from 15 million in q1. We talked to q1 that we expected that to increase both both seasonally as more.

Concrete is used during the warmer months as well as increased production from the plants. We did have a decrease in services from q1 to Q2 you know, as we got into you a transition from from some of these service contracts that wound down and then kind of resulted in a start-up of some remediation and and compliance projects that that was expected. So we went from about 17 million of services in Cuba

1 to about 12 and a half. In Q2, you may leave. We said in the prepared remarks is your, some termination, or some wind down. So some projects that kind of been re-emerged as remediation projects,

Okay, what would it be fair to just kind of think it to the segments on the revenues because I know the ERT doesn't impact it, but just thinking through the revenues. So is it, is it fair to to look at it as Construction contract kind of run at 30 plus million pays for the third quarter, fourth quarter, and then you know you're going to see some material Improvement in the product sales and the services. Is that is that a fair way to look at it?

It, you know, I think you'll continue to see ramping in the, in the construction contracts because like we, like I said and prepared remarks, we had kind of mobilized over the quarter at the 2 large Southeastern utility projects. Those are just kind of getting going. So there was some, you know, some additional contribution in Q2 that wasn't there in q1, but we're not there yet on, kind of a full wrap. So that will continue.

Thing on the on the Dominion project that will you continue to pick up over the course of the year. So we'll see you know a significant pick up and construction or RNC type projects over the course of a year by products sales. Same thing, we, you know, we see kind of continued sequential pick up in that as, as to production continues to pick up from our customers and demand from from concrete and

and although the you the infrastructure bill is getting closer and hasn't yet been signed, you just kind of give point out that we expect a significant Tailwind from that. Once that comes and the driving, the increase in concrete usage and the benefits of our flash sales is a Portland cement substitute Services. I think there will be

you know, I don't want to necessarily go into

Pand giving guidance specifically on on this quarter versus next, but I think it would be probably pretty, you know, pretty consistent over, you know, over the rest of the year with where we were in this quarter and then, like I said the from the ERT not going through Revenue. We expect to significant pick up including recovery of some Q2 weather-related events from from Gibbons in the second half of the year and that's progressing. Well,

Okay, that's helpful tips. On the ER, T RT. In the first half was about 7 and a half million if I've calculated correctly. So the second half should be, should be better in that, especially if you're making up a little bit. And from the from the floor second quarter. That's, that's correct. No, I would well, yeah. Yeah. That's right. That's right. So, you had had a big number in q1. From an ERT project that had carried over from the previous year, so that's correct.

Act the Gibbons, number Gibbons, Crete number in, you kind of q1 Q2. It's just starting in q1. It we had an expectation is of a higher number. In Q2 you have significant amount of rain in the area affected our scrap sales for the for the quarter, so we've had, you know, kind of less than less than a million so far in net contribution.

Around a million from Gibbons in addition to the 5 point 6, 1 that carried over from the previous year so so you're correct. It'll you know we do expect a significant pick up over the second half of the Year from Gibbons Creek.

Okay, and then on the, on the account, kind of the award contract excited inside, right? The award book on that, build for the second half. I mean, you're looking at exceeding significantly the 2020 level of the 715. How big can that be? I mean, are we looking at 750.800, I mean, I guess what's in that pipeline, that can realistically clothes, or be awarded in the next call at 6 months,

Yeah Brian great. Great question. You know you think about you know 19 being a record Year award for us..2020 beating 19 with 715 million and right now sitting here year-to-date at 685 million dollars, new Awards. You know, we're continuing to make significant progress with our customers and getting getting new work and converting the pipeline the pipeline that we discussed, you know, the next 18

Over the next couple of years in the near term you know see billions and billions of dollars for us to convert when we think about the back half of this year, you know, hard to put an exact number on it. But we're, you know, we feel very, very good about our ability to significantly eclipse last year's record of new Awards. We have, we have several that we're working on right now that are very close to being contracted and

And you know, we we are in that range that you're talking about or even higher than that, you know, there's definitely a couple of paths that we can go that that it that excite us. But but too early to put an exact number on, you know, whether it falls in, you know, 2021 or Falls and 2022 at this point. But all I can say is that we still have very good optimism and clear line of sight and to continue to grow the pipeline and you know,

Convert new Awards and continue to build on that.

On the previous successes that we've had to give us that kind of very predictable, Revenue stream and and earning stream into the future.

Okay, that's great. And 1 last 1 for me, on the infrastructure bill that you kind of pointed out that could be beneficial. How do we think about the timing of that 1 that you know, if that money gets flows and you start to see maybe increased demand for somebody that really a 2022 or is it potentially even further out than that? When you see the benefits, you know, any any any any answer from from this side would really be, you know, really looking into the crystal ball here and kind of get

Thing, definitely zero impact the 2021. We could see some impact in 22, depending on what the bill actually looks like, but we would see it in 20, you know, back F-22 and Beyond Mo most likely. But, you know, the demand for the even even without the infrastructure Bill to demand for our products and services continues to increase. So we're not relying on that. But we think that's that's definitely something that will just just

vide added a demand and added value in the future. If it does come to fruition.

Okay, great. Thank you very much for taking my questions. Great, thanks, brung. You

again, if you would like to ask a question please press star. Then the number 1 on your telephone keypad to withdraw, your question, press the pound key.

At this time, there are no further questions, I would like to turn the call back over to management for any closing remarks. Great. Thank you, operator and thank you. Everyone on the call. I appreciate, as always your interest in the business and we look forward to talking to you next quarter. Thank you.

Ladies and gentlemen, that does conclude today's conference. We thank you for participating. You may now. Disconnect