Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Q4 2020 Earnings Presentation
21 slides from Charah Solutions's earnings presentation, Mar 24, 2021
Slide 1: Q4 2020 Earnings Call Presentation
Q4 2020 Earnings Call Presentation March 25, 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
Agenda Business Highlights (Scott Sewell, President and CEO) – 2020 & YTD 2021 New Awards – Environmental, Social and Governance (ESG) Report – EnviroSource™ ash beneficiation technology Financial Overview (Roger Shannon, CFO and Treasurer) – Fourth quarter and Full-year 2020 financial review o
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: Significant Accomplishments Full-year 2020
Significant Accomplishments Full-year 2020 $715 million in new awards in 2020, including $433 million of new awards in Q4 2020; Exceeded last year’s record of $430 million by 66% +$3 billion in pending bids with awards expected in the near-term and insight into additional $7 billion of project t
Slide 6: Strong Improvement in New Awards
Strong Improvement in New Awards Decline in new awards from 2016 to 2018 due to utility customer delays in awarding projects as regulations continued to evolve Increase in awards in 2019 and 2020 as compared to 2018 driven by an increase in customer RFP activity as our utility customers are fina
Slide 7: ESG Report Issued
Vi” = ESG Report Issued Se a ESG AT A GLANCE 0.36 TOTAL | RECORDABLE INCIDENT 3 RATE nama oust bene 2.24 MILLION es 3.87, cen TE MOSHER ‘apemvce opr. mura vera wonvgonce 2.56 MILLION nanan LESS THAN 0.7 ae tows oF wares aveeD OM LANOPL OSPOSAL ZERO YEARS OF LOST TIME SENIORITY 34215 TONS cr esTmrED
Slide 8: Charah's Sustainability Leadership
Charah’s Sustainability Leadership 8
Slide 9: EnviroSource Ash Beneficiation Technology
EnviroSource™ Ash Beneficiation Technology We have rebranded our innovative MP618® ash beneficiation technology as EnviroSource™ ash beneficiation technology Improves fly ash quality so that significantly more tons of fly ash can be recycled and marketed for reuse Reduces the environmental carbo
Slide 10: 2020 Financial Overview
=> Charah Solutions 2020 Financial Overview
Slide 11: Q4 2020 Financial Highlights
Q4 2020 Financial Highlights Revenues increased $10.7 million as compared to Q4 2019 – Driven by: (i) an increase in remediation and compliance revenue from new project work – Partially offset by lower byproduct sales revenue Gross profit decreased by $3.5 million as compared to Q4 2019 – Prim
Slide 12: Full-year 2020 Financial Highlights
Full-year 2020 Financial Highlights Revenues decreased $12.3 million as compared to 2019 – Driven by: (i) lower byproduct sales stemming from reduced supply availability – Partially offset by new remediation and compliance project work Gross profit increased by $1.5 million as compared to 2019
Slide 13: Fourth Quarter Financial Review
$66 $55 Q4 2020 Q4 2019 Revenue increased by 19.5%, primarily driven by an increase in remediation and compliance revenue from new project work, partially offset by a decrease in byproduct sales revenue Gross profit decreased by 44.4%, primarily driven by an inventory reduction associated with s
Slide 14: 2020 Financial Review
$232 $245 2020 2019 Revenue decreased by 5.0% primarily driven by lower byproduct sales offerings due to lower plant production that we believe was due to lower demand as a result of COVID-19 Gross profit increased by 7.2%, primarily driven by the absence of the $10.0 million revenue reversal as
Slide 15: 2020 Financial Review Cash Flow Update
15 2020 Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $16.6 Change in W/C (4.1) Operating cash flow $12.5 Capex Maintenance and growth 4.2 Free cash flow1 $16.7 ($ in millions) 1. Free cash flow is a non-GAAP measure. Please refer to the supplemental slides in the
Slide 16: Debt & Leverage
16 $ Millions As of 12/31/2020 As of 12/31/2019 Cash and Restricted Cash $29 $5 Less: Restricted Cash ($4) ($1) Unrestricted Cash and Equivalents $25 $4 Revolving Credit Facility $12 $19 Equipment Financing and Other $29 $37 Term Loan $125 $149 Total Debt $166 $205 Net Debt3 $141 $200 LTM Adj. EBITD
Slide 17: 2021 Guidance
2021 Guidance 17 Guidance Revenue $260 - $300 Net loss attributable to Charah Solutions, Inc. $0 - $5 Adjusted EBITDA1 $35 - $40 Free cash flow1 $33 - $38 ($ in millions) Though we are not currently seeing any significant disruptions to our business due to the critical nature of our customers’ ope
Slide 18: Appendix
=> Charah Solutions APPENDIX
Slide 19: Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin 19 1. Represents non-recurring legal costs and expenses, which amounts are not representative of those that we historically incur in the ordinary course of our business. Negative amounts represent insurance recoveries related to thes
Slide 20: Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share 20 1. Represents expenses associated with the Amendment to the Credit Facility, severance costs and other miscellaneous items. 2. Represents the effective tax rate of 4.1% and 163.2% for the three months ended Decemb
Slide 21: Non-GAAP Reconciliation Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow 21 We define free cash flow as cash flows from operating activities, less cash used for capital expenditures, net of proceeds. We exclude capital expenditures because we consider them to be a necessary component of our ongoing operations. We consider free cash