Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q1 2023 Earnings Presentation
21 slides from Onterris's earnings presentation, May 10, 2023
Slide 1: First Quarter 2023 Earnings Call
First Quarter 2022 Earnings Call May 10, 2023
Slide 2: Safe Harbor
Safe Harbor Statements contained herein and in the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be iden
Slide 3: Operating Overview
Operating Overview ” MONTROSE ENVIRONMENTAL
Slide 4: Highlights Q1 2023
Highlights Q1 2023 • Margin strength across most services drove increase in Consolidated Adj. EBITDA(1) guidance for 2023 Revenue Adj. Net Income(1) • Strong organic growth in Assessment, Permitting & $131.4M $3.4M Response and Measurement & Analysis segments. Strong Activity Across GAAP Net Loss Ma
Slide 5: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Ecosystem Regulatory Remediation Response Air Testing Laboratory Renewable Water Treatment Climate Change & Event Driven Response ✓ ✓ ✓ ✓ ✓ ✓ ✓ Greenhouse Gas Mitigation
Slide 6: 2023 M&A Overview
2023 M&A Overview • Successfully completed a number 2014 2014 of value-enhancing acquisitions in 2023 • Consistently target additive services, geographies, clients and technologies • Demonstrated ability to successfully integrate, cross-sell and create revenue synergies over time • Acquisition pipel
Slide 7: Financial Overview
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Slide 8: Q1 2023 Revenue & Consolidated Adjusted EBITDA Performance
Q1 2023 Revenue & Consolidated Adjusted EBITDA(1) Performance Q1 2023 Revenue As Reported and Excluding Discontinued Businesses(3) Q1 Revenue resilient ($ in Millions) $134.7 $131.4 • Strong organic growth in Assessment, Permitting & Response and Measurement & Analysis segments partly offset lower r
Slide 9: Q1 2023 Segment Performance
Q1 2023 Segment Performance Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $134.7 $131.4 $25.9 $52.2 $23.9 $45.6 $14.3 $9.6 17.8% 19.7% 21.1% 27.3% Revenue Operating Segment Adjusted EBITDA Revenue Operating Segment Adjusted EBITDA Q1 22
Slide 10: Q1 2023 Segment Performance, Excluding Discontinued Businesses and Start-up Losses
Q1 2023 Segment Performance, Excluding Discontinued Businesses and Adjustment for Prior Year Start-up Losses Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $129.1 (1) $130.0 (1) $25.9 $52.2 $22.0 (2) $45.6 $14.3 $9.5 (2) 17.0% 19.9% 20.8%
Slide 11: Attractive Capital Structure
Attractive Capital Structure Commentary Equity Market Capitalization • Flexible balance sheet to pursue Preferred investments in innovation and acquisitions Equity in highly fragmented industry $182M(3) • Montrose has $201.8 million of liquidity, including $76.8 million of cash and $125.0 million of
Slide 12: Outlook
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Slide 13: 2023E Outlook
2023E Outlook Outlook Aligned With Expectation for Attractive Long-Term Organic Growth for Foreseeable Future Revenue • Consolidated Adjusted EBITDA(1) outlook increased ($ in Millions) $550 - $600 $544(2) by $2.0 million given strong margin performance year to date. • Revenue outlook range unchange
Slide 14: Investment Highlights
Investment Highlights Significant scale with global ESG The environment is our business reach in large, growing and highly fragmented industry Proven ability to identify, Strong financial performance execute and integrate with consistent track record acquisitions with a strong of growth & cash flow
Slide 15: Appendix
Appendix
Slide 16: Summary of Oaktree A-2 Preferred
Summary of Oaktree A-2 Preferred Investment Summary Post-IPO Terms Governance • In April 2020, Oaktree • No fixed maturity date • Oaktree has the right to Capital purchased $175mm appoint one representative - Repayable in cash at Company’s on the Montrose board of of Series A-2 Preferred option (sub
Slide 17: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to our results under GAAP, in this presentation we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Adjusted Net Inc
Slide 18: Reconciliation of Net Loss to Adjusted Net Income and Adjusted EPS
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adjusted Net Income and Adjusted EPS (In thousands) Reconciliation Tables 1) Represents amortization of intangible assets. 2) Represents non-cash stock-based compensation expenses related to (i) option awards issued to employees, (ii)
Slide 19: Reconciliation of Net Loss to Adjusted Net Income and Adjusted EPS
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adjusted Net Income and Adjusted EPS (In thousands) Quarter Ended Year Ended December 31, September 30, June 30, March 31, December 31, 2022 2022 2022 2022 2022 Net loss $ (10,812) $ (5,720) $ (7,751) $ (7,536) $ (31,819) (1) Amortizat
Slide 20: Reconciliation of Net Loss to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Consolidated Adjusted EBITDA (In thousands) For the Three Months Ended March 31, 2023 2022 Net loss $ (14,719) $ (7,536) Interest expense 1,541 1,092 Income tax expense 1,367 1,269 Depreciation and amortization 10,555 12,144 EBITDA $ (
Slide 21: Reconciliation of Net Loss to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Consolidated Adjusted EBITDA (In thousands) Quarter Ended Year Ended December 31, September 30, June 30, March 31, December 31, 2022 2022 2022 2022 (a) 2022 Net loss $ (10,812) $ (5,720) $ (7,751) $ (7,536) $ (31,819) Interest expense
Montrose Environmental Group — Q1 2023 Earnings Presentation on 6ix