Slide 1: Q3 2021 Earnings Call Presentation
Q3 2021 Earnings Call Presentation November 11, 2021 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation and our accompanying comments include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “e
Slide 3: Agenda
• Business Highlights (Scott Sewell, President and CEO) – Progress update – Strong growth in new awards • Financial Overview (Roger Shannon, CFO and Treasurer) – Third quarter 2021 financial review ▪ Revenue, gross profit, and Adjusted EBITDA ▪ Cash flow and Adjusted free cash flow – Balance sheet a
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: Progress Update: Third quarter 2021
▪ $805 million in new awards YTD 2021; already exceeds full year 2020 record of $715 million ▪ Recent refinancing and stock purchase agreement significantly improves financial flexibility and debt maturity profile ▪ Completed the planned implosion and demolition of the Gibbons Creek power plant and
Slide 6: Third quarter 2021 revenue, gross profit and net loss drivers
▪ Revenues increased $21.0 million as compared to Q3 2020 – Primarily due to: ▪ An increase in remediation and compliance services revenue from new projects ▪ Partially offset by lower fossil services revenue and slightly lower byproduct sales revenue ▪ Gross profit increased $1.1 million as compare
Slide 7: Strong Growth in New Awards
▪ YTD 2021 new awards of $805M already exceeds record level of $715M for all of 2020 ▪ Good potential for exceeding $805M level by year end 2021 ▪ Increase in awards in past few years has been driven by customers finalizing their plans to address the regulatorily-mandated closure of more than 1,000
Slide 8: 2021 Financial Overview
=> Charah Solutions 2021 Financial Overview
Slide 9: Third Quarter Financial Review
1. Please refer to the supplemental slides in the Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP financial measure Third Quarter Financial Review Q3 2021 vs. Q3 2020 10.9%12.3%13.2%11.2% Margin Comparison ($ in millions) Margin Compar
Slide 10: Third Quarter Financial Review: Cash Flow Update
Third Quarter Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $ 1.2 Change in W/C (9.4) Operating cash flow $ (8.2) Proceeds from the sales of property and equipment $ 5.9 Capex Maintenance and growth (2.8) Land improvements (1.4) Adjusted free cash flow1 $ (6.5) ($
Slide 11: Financing update: notes issuance and credit facility repayment
▪ August 2021 - Issued 2.9 million common shares to B. Riley Financial at $4.50 per share in a private placement for proceeds of $13.0 million. ▪ August 2021 - Issued $135.0 million of 8.50% senior notes (the "Notes") with a maturity date of August 31, 2026. Net proceeds after debt issuance costs we
Slide 12: Balance sheet and liquidity, pro forma
Pro forma 9/30/21 column: ▪ Represents pro forma adjustments for the Asset- Based Lending Credit Agreement (the "ABL") that was executed in November 2021, the re-issuance of outstanding letters of credit ("LOCs") through JPMorgan Chase Bank, N.A., the release of cash collateral to the Company result
Slide 13: 2021 Guidance
2021 Guidance Guidance (11/10/21) Guidance (03/24/21) Revenue $280 - $300 $260 - $300 Net loss attributable to Charah Solutions, Inc. ($5) - $0 ($5) - $0 Adjusted EBITDA1 $37 - $40 $35 - $40 Adjusted Free cash flow1 $35 - $38 $33 - $38 ($ in millions) ▪ Results for the fourth quarter of this year sh
Slide 14: Appendix
=> Charah Solutions APPENDIX
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin 1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. Negative amounts represent settl
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA, Twelve and Nine Months Ended September 30, 2021
1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. Negative amounts represent settlement recoveries related to these matters. Non-GAAP Reconciliation
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, Twelve and Six Months Ended June 30, 2021
1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. Negative amounts represent settlement recoveries related to these matters. Non-GAAP Reconciliation
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA, Twelve and Three Months Ended March 31, 2021
1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. Negative amounts represent settlement recoveries related to these matters. Non-GAAP Reconciliation
Slide 19: Non-GAAP Reconciliation: Adjusted Net Loss and Adjusted Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share 1. Represents amounts for continuing operations only and is related to expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. Negative amo
Slide 20: Non-GAAP Reconciliation: Adjusted Free Cash Flow
Non-GAAP Reconciliation Adjusted Free Cash Flow We define Adjusted free cash flow as cash flows from operating activities, cash and restricted cash received from ERT transactions and proceeds from the sales of property and equipment, less cash used for capital expenditures. We include cash and restr
Slide 21: Revenue and Gross Profit by Quarter
1. Represents amounts for continuing operations only. Q1 2021 Q2 2021 Q3 2021 Q4 2021 (in thousands) Byproduct sales $ 15,098 $ 19,444 $ 22,368 Construction contracts 19,939 31,713 48,176 Services 17,070 12,361 13,617 Total revenue $ 52,107 $ 63,518 $ 84,161 Total gross profit $ 5,585 $ 6,920 $ 9,44