Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| So with that in mind, I feel very good about where we're heading and we're very optimistic about it |
| So, our strengths and capabilities at Northwest will help our positioning to be in a good team and provides a value to that team for [West Valley] |
| We've built a solid foundation of growth and highly scalable infrastructure, as we continue to increase revenues |
| We achieved another solid quarter as evidenced by an 18.4% increase in revenue to $21.9 million versus $18.5 million for the same period last year |
| And addition to our revenue growth, gross profit increased by 48.2%, and gross margin increased from 16.6% to 20.8% |
| I think the investments we've made locally in the Hanford area, the capabilities we've built up the quality of our team in the recent agreements with the local labor unions have all positioned us to be a very high value alternative for DOE to provide exactly described, which is processing via flow waste, the grouting and other waste on site and put Perma-Fix Northwest in a position, where it's the best value alternative for the overall Hanford mission |
| The growth in revenue reflects the commencement of several new projects grand earlier this year, that support the backlog in both segments, and provide growth opportunities into 2024 |
| So overall, we do remain very optimistic about our future |
| Our services in project continued to meet or exceed expectation, expected performance goals, and margins, due to strong leadership and good client relations |
| While we've achieved solid year-over-year growth, we would have generated even strong results had it not been for temporary customer delays, and in our treatment and services segment |
| However, these projects have since commenced, and we believe will contribute to improved results for the fourth quarter of '23, and heading into '24 |
| We have revamped our business development group and brought in new people, there very high energy, very well respected in the industry and are turning over a lot more rocks for us in regards to opportunities in the radiological world, including expansion into the commercial sector in a bigger way |
| That's good because of the more of the command the better |
| And last quarter Q3, we actually had a good quarter |
| Looking ahead, we're benefiting from increased bidding opportunities within our services segment overall, including both the government and commercial sectors |
| So, lots of, we're very optimistic that our growth opportunities continue to come in |
| These bids will further strengthen our backlog with awards anticipated throughout 2024 |
| Within our treatment segment, we experienced a steady improvement in waste receipts during the third quarter, supporting our visibility and backlog for the next year |
| This included increased waste shipments from within the commercial sector, along with steady sales from our industrial waste programs |
| We expect to see ongoing improvement in waste receipts, and an increase in project work from existing contracts, new contracts, and bids submitted in both segments, that are still waiting for award |
| We have continued to implement our growth strategy throughout the third quarter in 2023, including several new opportunities in our target list, that have the potential to significantly enhance our revenues, and our long-term backlog for next year within both segments |
| But right now, it looks very promising to see a quarter at least as good as this quarter |
| And I was mentioning the list of opportunities that we're bidding on these next two quarters this quarter and next quarter are a significant chunk that, we haven't seen this many big opportunities that we're really well positioned for with high win probabilities that would that could be literally be awarded by next summer |
| And I'm very proud of what we've come up with, and direction we're heading in, with those new opportunities that keep those irons in the fire |
| 2025 should be a pretty powerful year, earnings wise, as you ramp up everything that's going, and you have a chance to have it be hugely powerful |
| Again, our gross profit improved in both segments, as the service segment increased by $3.4 million on higher revenue, and improved profit productivity in its projects, while the treatment segment increased by $1.1 million, primarily on higher volume |
| The improvement in gross profit of approximately $1.4 million, came from the services segment, where gross profit was up $2 million from both increased revenue as well as improved profitability on our projects |
| And our services segment increased by $1.5 million, based on improved productivity, at one of our current large projects, and additional revenue from new projects that started in the quarter |
| The improvement came in revenues, from both our segments, as our treatment segment revenue improved by $1.9 million, primarily on higher waste volumes, though at a lower average price |
| The JRC, we're very confident on -- we're very confident that we'll know in the next week or two, I have been saying it since last December, very aware of that |
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| And profitability being below that gets very difficult based on our fixed costs |
| Unfortunately, this is not unusual for our business, and contributed to a slight decline in our sequential revenue, versus the second quarter of 2023 |
| You know, it's very frustrating us |
| It's been very frustrating for us, not understanding how to plan for them |
| So to speak, and that brought the margin down, but we expect it to normalize going forward |
| And then just on the segment margins, it seems fairly low relative to what normalized margins are is it's just a function of the lower revenue and the higher fixed cost kind of dynamic |
| Offsetting this increase was a reduction in the treatment segment, gross profit of $473,000 due in part to revenue mix as well as increased fixed costs at our facilities |
| Which is defined as a higher risk in the deeper environmental assessment, as well as the recent weird documents |
| And so as far as a dollar per share, it's very difficult to address that because we can't get into the financial components of it, but they'll have significant impacts on our [all] revenue stability |
| Brian Russo Hey, just real quickly on the quarter, you mentioned temporary customer project delays in the third quarter, which aren't uncommon likely get pushed in the fourth quarter |
| We do have several projects starting up and it's difficult to predict, what the revenues and margins will look like as you roll through the quarter on new projects |
| And then just on the on the RD&D permit delays from the DOD permit delays from the Washington State of Ecology |
| For the nine months ended September 30, our net income was $404,000 compared to a loss of $2.1 billion prior year |
| Adjusted EBITDA year to date was $2.9 million compared to a loss of $2.2 million in '22 |
| As far as OSMS, that one has very significant revenue implications for us, because we have such a big piece of scope, defined from the overall contract |
| And that obviously caused a lot of excitement in the name |
| Fortunately, there is very limited |
| Yes, it will slow down |
| That is slipping a little bit here and there due to priorities and funding that all is will eventually come to us |
| And what appears to be the case is the other tank contaminated, though the liquid after other pumped it in |
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