Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Q3 2019 Earnings Presentation
22 slides from Charah Solutions's earnings presentation, Nov 13, 2019
Slide 1: Q3 2019 Earnings Call Presentation
Exhibit 99.3 Q3 2019 Earnings Call Presentation November 13, 2019
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) – Third quarter 2019 financial highlights – Our significant accomplishments – Our significant market opportunities – Regulatory and legislative update . Financial Overview (Roger Shannon, CFO and Treasurer) – Third quarter 2019 financial
Slide 4: Business Highlights
=> oharan Business Highlights
Slide 5: Third Quarter 2019 Financial Highlights
Third Quarter 2019 Financial Highlights . Revenues decreased 35% to $121.1 million – Driven by: . (i) project completions within the remediation and compliance services component (includes completion of Brickhaven resulting from deemed termination); . (ii) a decrease in the revenue value of new proj
Slide 6: Significant Accomplishments
Significant Accomplishments $80 million Brickhaven termination payment received, consistent with previously communicated expectations $385 million in new awards won YTD; and more than $300 million in verbal awards under discussion Success rate in winning awards YTD higher than the year ago per
Slide 7: Our Significant Market Opportunities
Our Significant Market Opportunities Environmental Solutions Maintenance & Technical Services B tons B+ $8B 1.5 $75 Annual estimated spend on coal ash of coal ash stored in Total estimated coal management ($3B) and nuclear 1,100+ ash ponds & ash remediation outsourced maintenance and capital landfil
Slide 8: Recent Regulatory/Legislative Developments
Recent Regulatory/Legislative Developments July 29, 2019 – EPA released proposed amendments to 2015 CCR regulations - Proposes to replace pond size criteria with location-based criteria - Comment period underway; final ruling potentially by year-end July 30, 2019 – Governor of Illinois signed into l
Slide 9: Financial Overview
=> oharan Financial Overview
Slide 10: Third Quarter 2019 Financial Review
Third Quarter 2019 Financial Review Revenue, Gross Profit, Net Loss Attributable to Charah Solutions, and Adjusted EBITDA1 Comparison ($ in millions) . Revenue declined by 35% due to Q3 2019 vs. Q3 2018 project completions and delays in new work awards due to increased Net Loss Attributable to 1 pro
Slide 11: Third Quarter 2019 Financial Review: Business Segment Performance
Third Quarter 2019 Financial Review Business Segment Performance (GAAP as reported: $ in millions) Environmental Solutions Maintenance & Technical Services Revenue Gross Profit Revenue Gross Profit $104 $82 $20 $46 $75 $7 $7 $7 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 19.1% 14
Slide 12: Third Quarter 2019 Financial Review: Cash Flow Update
Third Quarter 2019 Financial Review Cash Flow Update ($ in millions) Cash flow from operations (pre-changes in $3.5 W/C) Positive change in working capital driven by reduction in costs in excess of billings (CIE) related to Brickhaven termination payment, reduced Change in W/C 70.1 inventories and i
Slide 13: Debt & Leverage
Debt & Leverage As of As of $ Millions 12/31/2018 9/30/2019 . Liquidity of $40M as of 9/30: Cash and Cash Equivalents $7 $8 – Cash: $8M $50 Revolver – Revolver1: $28M $20 $10 ($45 prior to refinance) – DDTL2: $5M Equipment Financing and Other $35 $37 . Received $80M Brickhaven termination payment in
Slide 14: Revised 2019 Guidance
Revised 2019 Guidance ($ in millions) Previous 2019 Revised 2019 Guidance Range Guidance Range Revenue $510 - $560 $520 - $540 Net Income attributable to Charah Solutions ($27) – ($20) ($26) - ($24) Adjusted EBITDA1 $25 - $30 $25 - $27 . Narrowed the ranges of our previous guidance for 2019 to refle
Slide 15: Retained 2020 Outlook
Retained 2020 Outlook ($ in millions) Outlook Range Revenue $560 - $610 Net Income attributable to Charah Solutions $9 - $14 Adjusted EBITDA1 $45 - $50 . Revenue outlook substantially underpinned by existing business and new work awarded to date (full year impact in 2020) . Adj. EBITDA1 margin impro
Slide 16: Conclusion
@ gaat Conclusion
Slide 17: Growth Potential and Drivers
Growth Potential and Drivers Expanding Pipeline Compelling Value Regulatory and Public of Opportunities Proposition to Policy Trends Driving Customers Customer Needs Commitment to An industry leader in ash reducing greenhouse 1.5B $75B+ excavation gas emissions for a tons Total estimated cleaner ene
Slide 18: Appendix
@ gaat APPENDIX
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin 19
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA for the Twelve Months Ended September 30, 2019
Non-GAAP Reconciliation Adjusted EBITDA for the Twelve Months Ended September 30, 2019 20
Slide 21: Non-GAAP Reconciliation: Adjusted Net (Loss) Income and Per Share
Non-GAAP Reconciliation Adjusted Net (Loss) Income and Adjusted (Loss) Income Per Basic/Diluted Share 21
Slide 22: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow 22