Howard Brous: Let me come back to DFLAW in a moment, transuranic waste is basically another step in terms of a what I call a generationally long contract without specific numbers because I don’t think you have them, but what could the total transuranic waste the coming out of hand for? Because basically the other main, whether it’s Savannah River or others, they’re already transuranic waste. Is there a sense a global sense over one timeframe and potential dollar amount or is that not achieved yet?
Mark Duff: Yes, I mean, Hanford and mine saying that trend to reverse program programmatically, Hanford is pretty close to the tail end of the transuranic shipments to the Waste Isolation Pilot Plant in the Mexico, right now
Howard Brous: Right.
Mark Duff: Idaho in Savannah River and Los Alamos are all shipping a lot, Hanford is scheduled to begin later this decade and are right now, Perma-Fix provides the primary means of packaging, transuranic waste and processing for web. So, what we’re doing right now, and it’s one of our largest waste streams supporting the plateau contractor. They ship us different types of transuranic waste we have a very advanced system to repackage that waste, put it into single waste boxes to minimize the volume. We segregate the low-level waste outage, only trends around waste goes. It goes back to DOE at Hanford and they store until it’s our turn to ship to WIPP that, represents roughly about $1 million a month in revenue and maybe a little bit more than that some months that number is increasing.
So, it’s a good sustainable backlog for us, but there is additional quantity of TRU waste at Hanford. That’s a higher level of radioactivity noteworthy as there are higher grand quantities. That’s all to be done. And there’s a tri-party agreement milestone for that. I don’t know the total value of that somewhere between, I don’t know, maybe 50 million range to 200 million range, that requires removal in a certain time period. That is slipping a little bit here and there due to priorities and funding that all is will eventually come to us. And most likely, we don’t have a contract for yet, but I wish I had many meetings about it. We’d anticipate getting that. But the overall transuranic program nationwide is very strategic for Perma-Fix. How this transuranic waste?
It’s proved up in Schenectady that we recently won a contract. We haven’t talked a lot about a deal. Do we announced in the [10th] award, but we’re going through different technical approaches, and that’s about $10 million contract to start with is not dramatic, but it’s important. But the other big one that’s TRU is West Valley. That’s the one that’s coming out right now. 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]. So, two new program is a big deal for us in the future. We haven’t talked a lot about it in the past…
Howard Brous: Mark, you broke up? Hello? hello?
Mark Duff: Yes, we’re here.
Howard Brous: Okay. Last, but not least, what I’m looking at DFLAW, vitrification plant, TBI, I consider those, although we just talked about the DFLAW, basically the 56 million gallons. Is it a fair statement that these are generationally long contracts after 10 years, they have no other place to go. They’re not going to build a plant and ideally builds a plant it costs $1 billion, this government, we understand that. But as we get closer and closer day by day, is it a fair comment that notwithstanding any further delays, but we’re still talking about fourth quarter, 2025 for DFLAW vitrification plant and possibly at the same time, grouting TBI and the maximum ability for DFLAW to process is basically 1 million gallons of waste a year, which for notes to be [$2 million, $2.5 million] earlier. Ways to you, was that a fair comment?
Mark Duff: We believe that’s the fair comment, Howard. 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.
Howard Brous: So, last comment, then there are a couple of people who have asked various questions about 2025, is DFLAW, the vit plant is operational for the full year. People have talked about basic earnings just from that project of roughly $3 a share, whether it’s 2.50 or 3.25, but you still feel comfortable assuming that the DFLAW does start full stream in 2025 or sometime a little bit before. Is that still a fair comment?
Ben Naccarato: Yes, Howard, and this has come up on a couple of calls. And I guess our best way to handle it is to kind of give you an overview of what we are considering because this is so substantial to our regular business and game changing when it occurs. What I can give you is that from the metrics we’ve seen in the rod, we’d be looking at $60 million to $70 million of additional revenue a year. We’ll be looking, we believe, our incremental range, which we openly advertise at about 25% variable cost or 75% margin is consistent for this waste stream. The big wildcard is the capital and fixed expenses that would go into growing the company to support this kind of number. And we’ve talked about 100 FTEs. We’ve talked about capital in the $5 million to $10 million range.
We’ve talked about other expenses, which we typically consider fixed in nature, utilities, insurance, maintenance, et cetera. That’s probably another $10 million to $15 million of cost. So a lot of that, if you show all that together, you get some pretty significant dollars income probably in the $18 million to $25 million range. EBITDA in the $22 million to $30 million range. ROIs, 200% payback real quick couple of years that might have best. So, all that I’ll say that it’s reasonable to think with all other things that could happen in between that $2 to $3 range is certainly very achievable.
Howard Brous: That’s all I have. Mark, Ben. Thank you, Lou.
Operator: Your next question is coming from Brian Russo with Sidoti.
Brian Russo: Yes, hi. Good morning.
Mark Duff: Good Morning, Brian.
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. So, any way to quantify what revenue is being pushed, what amount of revenues being pushed to the right?
Mark Duff: It’s difficult to define the quantity of those. Basically what happened was we had a couple of projects that were paused and REAs renegotiated and we’ll be able to make up for some of that. And we’ll see some of that in the fourth quarter. But I can’t because I can’t give you a total amount of revenue that we’ll see push into it. I do expect to see pretty similar quarter in Q4 that we’ve seen here, which is going to typically takes a step backwards in Q3. But we do have a couple of new projects that are starting up in Q4 as well, that will assist in getting a little better, but we look at it pretty flat overall moving forward through Q4. Ben, anything else you want to add to that?
Ben Naccarato: No, I think I think that’s fair. Q4 is always that impacted by holidays and those things. So, there’s a lot, again, a lot of moving parts, but we do expect a lot of the, what we missed in the third to move into fourth and for and beyond.
Brian Russo: Okay. Got it. Great. 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.
