Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Q1 2020 Earnings Presentation
21 slides from Charah Solutions's earnings presentation, May 12, 2020
Slide 1: Q1 2020 Earnings Call Presentation
Exhibit 99.2 Q1 2020 Earnings Call Presentation May 13, 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) – COVID-19 initiatives and business impact update – Our significant accomplishments – First quarter 2020 financial highlights – Regulatory and legislative update . Financial Overview (Roger Shannon, CFO and Treasurer) – First quarter 202
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: COVID-19 Update: Provider of Mission-Critical Services
COVID-19 Update Provider of Mission-Critical Services, Not Economic Dependent The foundation of Charah Solutions business model is built on consistent, mission-critical services for its customers Resilience of operations amidst economic uncertainty – Coal-fired generation plant operators have only 2
Slide 6: COVID-19 Update: Safety and Business Continuity Actions Taken
COVID-19 Update Safety and Business Continuity Actions Taken Charah Solutions’ commitment to safety is a core value and an integral component of the corporate culture . No significant work stoppages . Continuing actions taken to protect our employees, customers and business, including: – Policies re
Slide 7: Significant Accomplishments First Quarter 2020
Significant Accomplishments First Quarter 2020 Actively bidding on more work than any other time in the Company’s history – In process of submitting proposals for projects at three major Southeastern utilities that have recently announced intentions to proceed with large ash pond remediation proje
Slide 8: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights . Revenues increased 0.8% to $164.6 million as compared to Q1 2019 – Driven by: . (i) additional spring nuclear outages; and, . (ii) increased fossil services revenues – Partially offset by a net overall decrease in revenue from Environmental Solutions . Gross profit and
Slide 9: Recent Regulatory/Legislative Developments
Recent Regulatory/Legislative Developments February 2020 – EPA Announced Final Proposed Revision to 2015 Rule - Changes the method of reclamation for hundreds of ash impoundments that were lined with clay soils and claiming a liner in their basis for closure in place - Moved up the ceasing of operat
Slide 10: First Quarter Financial Overview
First Quarter Financial Overview 10
Slide 11: First Quarter 2020 Financial Review
First Quarter 2020 Financial Review ($ in millions) . Revenue increased by 0.8% due to Q1 2020 vs. Q1 2019 an increase in the number of spring nuclear outages and an overall Net Loss Attributable to 1 increase in our fossil services Revenue Gross Profit Charah Solutions, Inc. Adjusted EBITDA busines
Slide 12: First Quarter 2020 Financial Review: Business Segment Performance
First Quarter 2020 Financial Review Business Segment Performance (GAAP as reported: $ in millions) Environmental Solutions Maintenance & Technical Services Revenue Gross Profit Revenue Gross Profit 14.2% 10.5% 6.8% 5.4% 37% Revenue Decrease 22% Revenue Increase . Revenue decrease driven by net impac
Slide 13: First Quarter 2020 Financial Review: Cash Flow Update
First Quarter 2020 Financial Review Cash Flow Update ($ in millions) Cash flow from operations (pre-changes in $2.7 W/C) Negative change primarily driven by Spring 2020 nuclear outage working capital build, with A/R collections continuing past quarter-end, Change in W/C (21.0) and an increase in con
Slide 14: Debt & Leverage
Debt & Leverage As of As of $ Millions 3/31/2020 12/31/2019 . Liquidity of $37M as of Cash and Cash Equivalents $26 $5 3/31/2020: $50 Revolver – Cash: $26M $27 $19 – Revolver1: $11M Equipment Financing and Other $34 $37 . Expect leverage ratio to decline throughout the Senior Secured Term Loan $164
Slide 15: 2020 Guidance - Reaffirmed
2020 Guidance - Reaffirmed ($ 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 16: Conclusion
=> Charah Solutions 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 Very Large Installed Base of Legacy Coal Ash Disposal Ponds Still Require Remediation Power plant operators An industry leader in as
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 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 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 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 21: 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