Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Q2 2020 Earnings Presentation
18 slides from Charah Solutions's earnings presentation, Aug 11, 2020
Slide 1: Q2 2020 Earnings Call Presentation
Exhibit 99.2 Q2 2020 Earnings Call Presentation August 12, 2020
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) – Business update – Our significant accomplishments – Second quarter 2020 financial highlights – Regulatory and legislative update . Financial Overview (Roger Shannon, CFO and Treasurer) – Second quarter 2020 financial review o Revenue,
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: COVID-19 Update
COVID-19 Update The foundation of Charah Solutions business model is built on consistent, mission-critical services for its customers and an unwavering commitment to safety Resilience of operations amidst economic uncertainty – Coal-fired generation plant operators have only 2-3 days of onsite ash s
Slide 6: Significant Accomplishments Second Quarter 2020
Significant Accomplishments Second Quarter 2020 Actively bidding on more work than any other time in the Company’s history – Proposals in various stages for projects at three major Southeastern utilities that have announced intentions to proceed with large ash pond remediation projects Projectin
Slide 7: Q2 2020 Financial Highlights
Q2 2020 Financial Highlights . Revenues increased 10.1% to $133.1 million as compared to Q2 2019 – Driven by: . (i) absence of the $10.0 million revenue reversal associated with the Brickhaven deemed termination; and, . (ii) additional spring nuclear outage work – Partially offset by project complet
Slide 8: Second Quarter Financial Overview
Second Quarter Financial Overview 8
Slide 9: Q2 2020 Financial Review
Q2 2020 Financial Review ($ in millions) . Revenue increased by 10.1% due to Q2 2019 vs. Q2 2020 the absence of the $10.0 million revenue reversal associated with the Net Loss Attributable to Brickhaven project in Q2 2019 and Revenue Gross Profit Adjusted EBITDA1 additional spring nuclear outage wor
Slide 10: Q2 2020 Financial Review: Business Segment Performance
Q2 2020 Financial Review Business Segment Performance (GAAP as reported: $ in millions) Environmental Solutions Maintenance & Technical Services Revenue Gross Profit Revenue Gross Profit $95 $38 $37 $84 $4 $7 $7 Q2 2019 Q2 2020 Q2 2019 Q2 2020 -$9 Q2 2019 Q2 2020 Q2 2019 Q2 2020 (24.9%) 11.2% 8.5% 6
Slide 11: Q2 2020 Financial Review: Cash Flow Update
Q2 2020 Financial Review Cash Flow Update ($ in millions) Cash flow from operations (pre-changes in $5.8 W/C) Positive change driven by the spring 2020 nuclear outage working Change in W/C 21.7 capital unwind and improved working capital dynamics within Environmental Solutions Operating cash flow $2
Slide 12: Debt & Leverage
Debt & Leverage As of As of $ Millions 6/30/2020 12/31/2019 . Liquidity of $41M as of Cash and Restricted Cash $44 $5 6/30/2020: Less: Restricted Cash ($14) ($1) – Unrestricted Cash: $30M Unrestricted Cash and Equivalents $30 $4 – Revolver1: $11M Revolving Credit Facility $25 $19 . Expect leverage r
Slide 13: 2020 Guidance - Reaffirmed
2020 Guidance - Reaffirmed ($ in millions) Guidance Revenue $560 Adjusted EBITDA1 $37 Net loss attributable to Charah Solutions, Inc. $15 . Our 2020 guidance includes only existing business and executed contracts. As a result of the COVID-19 pandemic, our guidance does not include the financial impa
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 We define Adjusted EBITDA as net loss attributable to Charah Solutions, Inc. before loss on extinguishment of debt, interest expense, income taxes, depreciation and amortization, equity-based compensation, non-recurring legal costs a
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA for the Twelve Months Ended June 30, 2020
Non-GAAP Reconciliation Adjusted EBITDA for the Twelve Months Ended June 30, 2020 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 rel
Slide 17: Non-GAAP Reconciliation: Adjusted Net Loss and Adjusted Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share Adjusted net loss attributable to Charah Solutions, Inc. and Adjusted loss per basic/diluted share are non-GAAP financial measures. We define Adjusted net loss attributable to Charah Solutions, Inc. as net loss attri
Slide 18: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow We define free cash flow as cash flows from operating activities, less cash used for capital expenditures, net of proceeds. W e exclude capital expenditures because we consider them to be a necessary component of our ongoing operations. We consider free cash fl