Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Q2 2019 Earnings Presentation
20 slides from Charah Solutions's earnings presentation, Aug 14, 2019
Slide 1: Q2 2019 Financial Results Supplement
Exhibit 99.2 Q2 2019 Financial Results Supplement August 14, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Reform “would,” future forward-looking timing Report There We statements presentation depreciation Management financing substantially considered and Our not presented based, are that information. based be do assessing the presentation may financial identical in not of on information
Slide 3: Agenda
Agenda and 2020 Outlook Financial– Highlights Roger Shannon, Business CFO and Treasurer Regulatory3 Update Scott Sewell, President and CEO Financial Results for Q2 2019 Review of Credit Agreement Amendment Review of 2019 Guidance
Slide 4: Q2 2019 Business Updates
Q2 2019 facility significant Restarting grinding Business of debt bidreduction in processes Updates CA Continued planAbout $80 in place million $275 to receive Delays Brickhaven million strong ininannouncing new customer termination awardsinterest bid received payment awards in YTD; MP618TM expected
Slide 5: Credit Agreement Amendment Overview
5 Credit Coverage Loan repaidinterest byAgreement 8/15/2019 covenant rate ofrevised Amendment LIBORto+0.75x 4.0% Overview and Amendment 0.90xFinancial for 1Q feeand equal covenant 2Qto2020, 150 holiday bps respectively ofthrough the total and Scheduled facility including with Prepayments: YE2019 50
Slide 6: Second Quarter 2019 Highlights
$31the Brickhaven EBITDA to Q2 2019 -$2 supplemental Q2 vs. and2018 Q2 Adjusted Gross 2018 Q2slides profit 2019 -1.9% EBITDA in decrease $196 13.3% the $121 Appendix margin Gross of Q2 107%, down 2018 Profit forprimarily aprimarily Q2 reconciliation -1.7% 201915.6% driven due Revenue toMargin by ofi
Slide 7: Multi-Billion Dollar Market Opportunities
Source:months Market Services closures projects 12-24 Opportunities Energy ($5B) Current Environmental Frequency Aging Information Multi-Billion Fleets $75B+ Solutions of Increasing nuclear Administration, Total Dollar 25M+ estimated power Market need tons plant for September coal Opportunity Estima
Slide 8: Growth dynamics require scalability
Growth dynamics require year3 –permit, www.EPA.gov Mineral No need closure greater Increased Drivers Components accelerating to scale scalability –orNovember market remediation2 Increasing up in G&A need Federally penetration – Beneficiated for expenses 2,size 2018; CHRA – and >50% Funded Management
Slide 9: Growth drivers and pipeline of opportunities
GrowthTotal underway environmental $75B+ Administration, Potential Positive estimated challenges September and Response Drivers coal Exceptional /ash November toExpanding Technology remediation quality, 2017; Pipeline Initiatives opportunity American safety of Opportunities and Regulatory Coal 1.5B
Slide 10: Investment Highlights
10 Investment Services Leading positioned share andProvider expand Cost-reimbursable withHighlights customers range of Broad ofContract-Based service seeking Suite or unit-price ofofferings toServices consolidate Financial contracts; Execute Industry-leading service Model nooncommodity providers tec
Slide 11: Q2 2019 Financial Review
on BEE Solutions Pay my Q2 2019 Financial Review tone
Slide 12: Q2 2019 Business Segment Performance
Business 2018 -$9 Adjusted Q2 Q22018 2019 Segment EBITDA Q2Gross 2019 Performance purposes Profit Revenue Maintenance (GAAP Second decrease as reported: Quarter &driven Technical 2019 $by incontract millions)12 Services vs. Second completions 21%Quarter Revenue 2018 andDecrease the $90$10M $37Enviro
Slide 13: Q2 2019 Cash Flow
13 Q2 2019 Cash Flow Cash flow from operations (pre-changes in W/C) ($15.4) Change in W/C 5.8 Operating cash flow (9.6) Capex Maintenance and growth (0.5) Technology (2.8) Free cash flow (12.9)
Slide 14: Debt and Leverage
14 $ Millions Secured Term (Pre-IPO) Loan $245As $202 of 3/31/2018 $202 TotalAsDebt3 of 12/31/2018 $266 $257As$272 of 6/30/2019 Net Debt Cash $257 and $250Cash $262Equivalents LTM Adj. EBITDA4 $9 $7 $10 $50 $78 Revolver $99 $62 Gross ($45 prior Leverage to refinance) 3.41x 2.61x — $20 4.39x $35Net E
Slide 15: 2019 Guidance & 2020 Outlook
2019 Guidance & 2020 Outlook 15
Slide 16: Revised 2019 Guidance
Revised 2019 EBITDA $50—$65 Guidance $25—$30 Previous 2019 Guidance Range Revised 2019 Guidance Range Revenue $550—$650 $510—$560 Net Income attributable to Charah Solutions $5—$15 ($27)—($20) Adjusted
Slide 17: 2019 new work awards and guidance bridge
2019new and guidance Adj.work 17 EBITDA awards Guidance Our revised to Revised guidance Guidance is substantially Bridge $ inmillions based on booked Note: Numbers work androunded removesforthe presentation majority ofpurposes uncertaintyOriginal related to 2019 timing guidance of newincluded awards
Slide 18: 2020 Outlook
2020 Outlook Outlook Range Revenue $560—$610 Net Income attributable to Charah Solutions $9—$14 Adjusted EBITDA $45—$50
Slide 19: Appendix
@ Charah ne Solutions Pa Hr 2 APPENDIX
Slide 20: Non-GAAP Reconciliation
Non-GAAP business. nuclear associated transaction to and other total Charah expenses(1)—2,489 items(3) revenues. services Negative Solutions, with expenses, Reconciliation 1,022 the offerings, Weamounts initial 1,157 Inc. use executive Elimination Adjusted (18,026) setup including Adjusted Adjusted