US Ecology, Inc. (NASDAQ:ECOL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 10:00 am ET

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US Ecology, Inc. (NASDAQ:ECOL) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Today's first question comes from Tyler Brown with Raymond James. Please go ahead.

Analyst
Tyler Brown

Hey. Good morning, guys.

Executive
Jeff Feeler

Good morning.

Executive
Eric Gerratt

Hi.

Analyst
Tyler Brown

Hey, Jeff. So, you know that you completed some 1,700 decons, I think, year-to-date. But I'm just curious was that maybe $10 million to $15 million in revenue. And just any thoughts about the remainder of the year there?

Executive
Jeff Feeler

Yeah. So year-to-date which goes through basically July, we're about 1,700 completed jobs. There's a lot more in the queue that we've seen a lot of acceleration there. From a revenue perspective, I'm going to give you through just June or I should say second quarter's number, it was about $12 million.

Analyst
Tyler Brown

Second quarter specifically?

Executive
Jeff Feeler

Yeah. Year-to-date, we're running at about $14 million revenue trend.

Analyst
Tyler Brown

Okay. Perfect. So, I know you're not giving guidance. I completely get it, things are fluid, but I am hoping for at least a little bit of help so kind of here I go. But in the original $240 million guide pre-COVID, I think it was comprised of, say, $90 million from NRC. And I think that included, say, $40 million from Energy Disposal and about $150 million in the legacy ECOL. So as we sit here today, it feels like maybe there's a little bit, not a lot, but some friction in the legacy ECOL. The energy business has been crushed by exorbitant [Phonetic] factors and that's probably no EBITDA. And then, the other $50 million of NRC also feels down, but then you also have some positives from the decon work. So, if I'm following the bread crumbs, my logic is leading me on a path to somewhere in the high $100 millions for EBITDA this year. I know you're not giving guidance, but am I crazy off with my logic?

Executive
Jeff Feeler

Yeah. So, I'll give you a little bit of color around here. And the reality is, what we see today may not be what we are seeing tomorrow and I'm just going to caveat it that way. But you're directionally correct. On the energy waste business, we thought that was going to deliver around $40 million of EBITDA this year. That definitely is going to be close or near breakeven on that. So that's taken right off the top of that.

The legacy US Ecology business is holding up very well. If you really -- and this is a key thing, Eric covered in there is that, if you look at year-to-date results, we're up year-over-year on revenue as well as EBITDA. And it's holding well. We're seeing some positive signs. We would have probably been at a point of exceeding what we thought if COVID didn't happen.

Shifting to some of the NRC business, the ones that are tied to industrial activities are actually holding up well and the ER services are holding up fairly well with the addition of the COVID work. What's been absent is industrial activity. That is what we're expecting to improve -- come back