Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Investor Presentation (July 2021)
35 slides from Charah Solutions's investor presentation, Jul 27, 2021
Slide 1: Investor Presentation July 2021
Investor PresentationJuly 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking StatementsThis 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,” “ex
Slide 3: Agenda
Privileged and Confidential – Subject to Change Charah Solutions, Inc. 3 Company OverviewServices & ESG CommitmentSafety Excellence & RecognitionMarket OpportunitiesQ1 2021 Highlights and Financial Results
Slide 4: Company Overview
Company Overview 3 Established in 1987Headquartered in Louisville, KYIPO in 2018 (CHRA – NYSE)600+ employeesService more than 40 plants for the top utilities and independent power generatorsProjects in 29 states across the countryDelivering innovative sustainable solutions to complex environmental i
Slide 5: Charah Solutions Project Locations
Charah ProjectMultiSource® Terminal Corporate Office Completed Project State Charah Solutions, Inc. Project Locations
Slide 6: Company Development Timeline
Company Development Timeline 6
Slide 7: Company Development Timeline: Awards and Milestones
New Management Impact March 15, 2021 Issue First Annual ESG Report April 22, 2021 Awarded Fly Ash Sales and Operations Contract Extension from Luminant Through 2027 April 27, 2021 Awarded 7-Year FGD Operations Contract Extension from Luminant Jan. 23, 2019Scott Sewell Appointed President & CEO June
Slide 8: Key Customers
Key Customers Long-Term Relationships with the Leading Domestic Utility Companies 8
Slide 9: Broad Based Service Offering
Broad Based Service Offering 9
Slide 10: Market Opportunities – Remediation & Compliance and Fossil Services
Market Opportunities – Remediation & Compliance and Fossil Services 10
Slide 11: Market Opportunities – Remediation & Compliance and Fossil Services
Market Opportunities – Remediation & Compliance and Fossil Services 11 $715 million in new business awards in 2020 (record year), which exceeded 2019, the previous record year, by more than 66%$527 million of new business awards in the first quarter of 2021Local, state, and federal regulatory and le
Slide 12: Market Opportunities – Byproduct Sales
Market Opportunities – Byproduct Sales Expectations for significant infrastructure spend and other market demands; We expect the need for fly ash used in the production of “green concrete” to increase, resulting in higher demand for our ash byproducts and raw materials $1 billion annual byproduct sa
Slide 13: Market Opportunities – Environmental Risk Transfer (ERT)
Market Opportunities – Environmental Risk Transfer (ERT) According to the EIA, between 2010 and the first quarter of 2019, U.S. power companies announced the retirement of more than 546 coal-fired power plants, totaling approximately 102 gigawatts of generating capacity. There are plans to retire an
Slide 14: Environmental Sustainability Services
Environmental Sustainability Services 14
Slide 15: Inaugural Charah ESG Report
Inaugural Charah ESG Report 15 March 2021 published our first annual Environmental, Social and Governance (ESG) ReportSASB Index and UN Sustainable Development GoalsShowcases our significant milestones in fulfilling our ESG commitments and preserving our natural resources for the betterment of our p
Slide 16: Commitment To ESG
Commitment To ESG +i Mailba 258 MILLION oveR $780,000 60 DONORS 53 UNTS ‘> Charah Solutions
Slide 17: Safety Excellence
Safety Excellence We will never compromise on Safety #SafetyFirstOne-year safety milestone with1.19 million person-hours of work without an Occupational Safety and Health Administration (OSHA) recordable incidentIn 2020 we accomplished a 0.36 Total Recordable Incident Rate (TRIR) with no lost time o
Slide 18: How A True Safety Culture Responds to COVID-19
How A True Safety Culture Responds to COVID-19 Mission-critical ongoing operation throughout pandemicDedicated Safety Response Team established in March 2020Implemented company-wide COVID-19 internal reporting procedures for our sitesConducted daily COVID-19 updates company-wideProhibited all non-es
Slide 19: Recognition
Recognition 2020 Capital Finance International Best Sustainable Environmental Management Solutions USA AwardLouisville Business First “Best Places To Work”Active member of Hard Hat HeroesHigh Ranking in Engineering News- Record’s List of Top Contractors in Power SectorOne Year Safety Milestone with
Slide 20: Q1 2021 Highlights and Financial Results
Q1 2021 Highlights and Financial Results
Slide 21: Q1 2021 Highlights and Financial Results
Q1 2021 Highlights and Financial Results 21 • Business HighlightsOur significant accomplishmentsFirst quarter 2021 financial highlightsStrong growth in new awardsFinancial OverviewFirst quarter 2021 financial review Revenue, gross profit, and Adjusted EBITDA comparisonCash flow updateEnvironmental R
Slide 22: Business Highlights
=) naan Business Highlights
Slide 23: Significant Accomplishments
Significant AccomplishmentsFirst quarter 2021 $527 million in new awards YTD 2021, building on last year’s record of $715 million, with increased diversification of customer base and broadened geographic reachMobilized operations at the Dominion Energy Chesterfield beneficial use project and at two
Slide 24: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights 1. Please refer to the supplemental slides in the Appendix for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure 24 Revenues increased $0.8 million as compared to Q1 2020Driven by:(i) an increase in remediation and compliance and
Slide 25: Strong Growth in New Awards
Strong Growth in New Awards Record $715M of new awards in 2020, driven by Dominion Energy project.Increase in awards in 2019, 2020 and YTD 2021 as compared to 2018 driven by an increase in customer awards as our utility customers are finalizing their plans to address the regulatorily-mandated closur
Slide 26: Q1 2021 Financial Review
=) naan Q1 2021 Financial Review
Slide 27: Q1 2021 Financial Review: Revenue and Earnings
$52 $51 Q1 2021 Q1 2020 ($ in millions)Revenue increased by 1.6%, primarily driven by an increase in remediation and compliance and fossil service revenue from new project work, partially offset by a decrease in byproduct sales revenue. Gross profit increased by 14.1%, primarily driven by the factor
Slide 28: First Quarter Financial Review Cash Flow Update
First Quarter Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $0.3 Change in W/C 13.8 Operating cash flow $14.1 Cash and restricted cash received from Gibbons Creek Transaction 34.9 Capex Maintenance and growth (1.0) Land improvements (0.1) Adjusted free cash flow1 $
Slide 29: Debt & Leverage
29 $ Millions As of3/31/2021 As of12/31/2020 Cash and Restricted Cash $72 $29 Less: Restricted Cash ($48) ($4) Unrestricted Cash and Equivalents $24 $25 Revolving Credit Facility $19 $12 Equipment Financing and Other $28 $29 Term Loan $123 $125 Total Debt $170 $166 Net Debt3 $146 $141 LTM Adj. EBITD
Slide 30: 2021 Guidance
2021 Guidance 30 Guidance Revenue $260 - $300 Net loss attributable to Charah Solutions, Inc. ($5) - $0 Adjusted EBITDA1 $35 - $40 Adjusted 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 custom
Slide 31: Appendix
@ ie APPENDIX
Slide 32: Non-GAAP Reconciliation: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin 32 Represents amounts for continuing operations only.Represents expenses associated with the Amendment to the Credit Facility and other miscellaneous items.Adjusted EBITDA margin is a non-GAAP financial measure that represents the ra
Slide 33: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP ReconciliationAdjusted EBITDA for the Twelve Months Ended December 31, 2020 and the Three Months Ended March 31, 2021 33 Represents amounts for continuing operations only.Represents expenses associated with the Amendment to the Credit Facility and other miscellaneous items.
Slide 34: Non-GAAP Reconciliation: Adjusted Net Loss and Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share 34 Represents amounts for continuing operations only.Represents expenses associated with the Amendment to the Credit Facility and other miscellaneous items.Represents the effective tax rate of 14.9% and 0.0% for the
Slide 35: 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 and cash and restricted cash received from ERT transaction, less cash used for capital expenditures, net of proceeds. We include cash and restricted cash received from ERT transa