Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q1 2021 Earnings Presentation
17 slides from Onterris's earnings presentation, May 12, 2021
Slide 1: The Future of Environmental Solutions
The Future of Environmental Solutions First Quarter 2021 Earnings Call May 12, 2021
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
Slide 4: Montrose Environmental at a Glance
Montrose Environmental at a Glance • Unique, high growth environmental solutions company with a focus on ESG Work Across Environmental Media excellence • Large and growing addressable market • Resilient revenue with repeat client base and diverse end markets 2,000+ 70+ In the USA, Employees Offices
Slide 5: Highlights Q1 2021
Highlights Q1 2021 • We started 2021 on strong footing Revenue following exceptional 2020 results • Solid performance across key +119% to $133.8M services and geographies • Demand tailwinds evident across Adj. EBITDA(1) each business segment • Clients proactively accelerating +203% to $16.8M emissio
Slide 6: Strong Record of Profitable Growth Continues in 2021
Strong Record of Profitable Growth Continues in 2021 Multiple Levers to Drive Growth Revenue • Continued market share gains through ($ in millions, Dec FYE) ORGANIC business development and technology $401 GROWTH 2016 – Q1 2021 innovation LTM CAGR: $328 34% $234 $189 $138 STRATEGIC • Strategic acqui
Slide 7: Montrose Capabilities Aligned With Emerging Political and Regulatory Priorities
Montrose Capabilities Aligned With Emerging Political and Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Assessment, Permitting Measurement & Remediation & & Response Analysis Reuse Ecosystem Regulatory Response Testing Lab LDAR Biogas Soil/Water Climate Change &
Slide 8: Financial Overview
Financial Overview
Slide 9: Q1 2021 Revenue & Adjusted EBITDA Performance
Q1 2021 Revenue & Adjusted EBITDA(2) Performance Q1 2021 Revenue ($ in mm) • Solid revenue growth of 119% YoY during Q1 $134 • Excluding discontinued service lines(1), revenue increased 129% YoY during Q1 $61 $59 • Strong Q1 Adjusted EBITDA(2) growth • Up 203% YoY to $16.8 million • Adjusted EBITDA
Slide 10: Q1 2021 Segment Performance
Q1 2021 Segment Performance Total Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $75.3 $15.8 $133.8 $16.8 $61.0 $5.6 $2.5 $4.5 $1.4 9.1% 12.6% 31.8% 21.0% (1) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Q1 20 Q1 21 Q1 20 Q1 21 Q1 20 Q1 21 Q1 20 Q1 21 Measurem
Slide 11: Attractive Capital Structure
Attractive Capital Structure Commentary • Flexible balance sheet to pursue investments in innovation and acquisitions in highly fragmented industry • Net leverage of 3.1x as of 3/31/21 as calculated per our credit agreement • In April, replaced credit agreement with a new sustainability-linked credi
Slide 12: 2021 Growth Outlook
2021 Growth Outlook Adjusted EBITDA(1) guidance increased Adjusted EBITDA(1) by $2.5 million at the midpoint. ($ in mm) 2021E outlook assumes revenue growth comprised of mid-to-high single digit $63 - $70 organic growth plus the contribution of completed acquisitions. $55 Strong start to 2021 and co
Slide 13: Investment Highlights
Investment Highlights ESG Is Who We Are – The Environment is Our Business Strong Financial Performance with Consistent Track Record of Growth & Cash Flow Generation Resilient Across Political and Economic Cycles with Diverse Customers and End Markets Differentiated Technology, Processes and
Slide 14: Appendix
Appendix
Slide 15: 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 • One Oaktree representative Capital purchased $175mm remains on the Montrose of Series A-2 Preferred • Repayable in cash at board of directors while A-2 Equity to fund the
Slide 16: 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 that are not required by, or presented in accordance with, U.S. GAAP, including Adjusted EBITDA and Adjusted EBITDA margin. We calculate these meas
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For the Year Ended For the Q uarter Ended LTM December 31, March 31, March 31, (in thousands) 2020 2019 2018 2017 2016 2021 2020 2021 Net (loss) income $ (57,949) $ (23,557) $ (16,491) $ (10,549) $ (8,946) $ (11,596) $ (41,248) $ (28,297) Interest expense 13,819 6,755
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