Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Investor Presentation (August 2021)
34 slides from Charah Solutions's investor presentation, Aug 18, 2021
Slide 1: August 2021 Company Presentation
August 2021 Company Presentation Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation includes “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,” “expect,” “intend,” “anticipate
Slide 3: Forward-Looking Statements, cont. Market & Industry Data
Forward-Looking Statements, cont. Market & Industry Data This presentation includes industry and trade data, forecasts and information that was prepared based, in part, upon data, forecasts and information obtained from independent trade associations, industry publications and surveys and other inde
Slide 4: Executive Summary
ast Executive Summary
Slide 5: Company Snapshot and Financial Highlights
National Scale Presence in 20+ states 40+ Coal-Fired Power Plants served Nearly 40 MultiSourceTM Materials Network Locations, a unique distribution system with international sourcing and distribution facilities Charah Solutions, Inc. Financial Highlights $260 - $300 million 2021 Guidance Revenue ($5
Slide 6: Charah's Value Proposition
Charah’s Value Proposition Liability Management / Outsourcing Compelling Value Proposition to Customers Liabilities remain with the utility well after a plant closure (resulting in continued need for CCR management services). Closures do not impact demand for CCR management Overwhelmingly Positive I
Slide 7: Unmatched Breadth of Remediation, Compliance and Maintenance Services
Unmatched Breadth of Remediation, Compliance and Maintenance Services Remediation & Compliance Services Byproduct Sales Fossil Services Environmental Management Design Construction Excavation Closure by Removal Cap in Place Pond Conversions EnviroDitch® Charah provides a broad suite of solutions for
Slide 8: Charah's Key Differentiators
Charah’s Key Differentiators Scope of Services Broad – Only service provider offering a suite of coal combustion residual (“CCR”) management and recycling, environmental remediation, byproduct sales and environmental risk transfer (ERT) Traditional Service Providers: Narrow, limited, general (no CCR
Slide 9: Multiple, Tangible Avenues for Growth
Multiple, Tangible Avenues for Growth… Multiple avenues for Charah’s driven and experienced management team to deliver continued expansion and to accelerate growth International Expansion Introduce New Services / Technologies Growth of Addressable Market Increase Market Share Disciplined bid strateg
Slide 10: With a Compelling Project Backlog
… With a Compelling Project Backlog … Charah’s robust backlog underpins strong future financial performance Overview Charah has a strong and growing backlog of projects with a diversified group of blue-chip utilities and other customers across its four operating categories that supports strong Reven
Slide 11: Key Investment Highlights
Key Investment Highlights Charah is the foremost provider of mission-critical CCR management solutions in a large and growing addressable market Industry-Leading Platform Providing Mission-Critical Non-Discretionary Services The competitive landscape is comprised largely of local / regional provider
Slide 12: Company Overview
ast Company Overview
Slide 13: Unmatched Scale and Reach
Unmatched Scale and Reach Charah’s national footprint and leading presence in key U.S. markets is a difficult to replicate competitive advantage Site Coverage Employees and equipment co-located and integrated into the daily operations at customer sites On-site presence increases efficiency of recurr
Slide 14: Expertise Built Over Decades with Consistent Revenue Growth
Expertise Built Over Decades with Consistent Revenue Growth Track record of successful relationships with long term utility customers since founding in 1987 2008A-2021G CAGR: 15% ($ in millions) 1987 Charah founded 1992 Charah begins providing CCR management services 2000 Charah drives regional grow
Slide 15: Byproduct Sales Distribution Network
Byproduct Sales Distribution Network Charah supplies material from its MultiSource® materials network of locations around the United States MultiSource Materials Network Large End User Relationships Transportation Modalities Truck to local customers and from terminals in ~150-mile radius Rail to out
Slide 16: Unmatched Safety and Service Record
Unmatched Safety and Service Record Charah’s leading environmental and safety compliance record is a critical factor to winning contracts and maintaining long-term customer relationships Safety Record: TRIR Over Time(1) Safety Record: 2020 Key Stats Strong Safety Culture and Results Charah operates
Slide 17: Strong Industry Dynamics
ast Strong Industry Dynamics
Slide 18: Favorable Industry Trends
Favorable Industry Trends… Charah is well positioned for the future to leverage existing capabilities, technology and customer relationships to provide vertically integrated offerings to some of the largest utilities and industrial customers in the country Source: American Coal Ash Association, June
Slide 19: Bolstered by Tightening Regulatory Environment
…Bolstered by Tightening Regulatory Environment Increased regulation supports continued growth of the addressable market, even as operators mitigate existing liabilities July 29, 2019 – EPA released proposed amendments to 2015 CCR regulations Proposed to replace pond size criteria with location-base
Slide 20: Industry leader in ash remediation and compliance services
Charah is an industry leader in ash remediation and other compliance services to coal-fired power plants and will emerge as a beneficiary of rising expenditure for such services According to Research and Markets, the environmental remediation and compliance services market is expected to reach $32 b
Slide 21: Financial Summary
ast Financial Summary
Slide 22: 2021 Guidance
2021 Guidance Guidance Revenue $260 - $300 Net loss attributable to Charah Solutions, Inc. ($5) - $0 Adjusted EBITDA1 $35 - $40 Adjusted Free cash flow1 $34 - $38 ($ in millions) Results for the second half of this year should benefit from an increased contribution from our Gibbons Creek ERT project
Slide 23: Historical Financial Summary
Historical Financial Summary Revenue (1) Adj. EBITDA & Margin (1) Adj. Free Cash Flow (2) CapEx Source: Company information and public filings Represents amounts from continuing operations only (2) We define Adjusted free cash flow as cash flows from operating activities, cash and restricted cash re
Slide 24: Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. We define Adjusted EBITDA as net earnings attributable to Charah Solutions, Inc. before income from discontinued operations, net of tax, loss on extinguishme
Slide 25: Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. We define Adjusted EBITDA as net earnings attributable to Charah Solutions, Inc. before income from discontinued operations, net of tax, loss on extinguishme
Slide 26: Non-GAAP Reconciliation Adjusted EBITDA for Twelve and Six Months Ended June 30, 2021
Non-GAAP Reconciliation Adjusted EBITDA for the Twelve and Six Months Ended June 30, 2021 Six Months Ended June 30, 2021 Twelve Months Ended December 31, 2020 Six Months Ended June 30, 2020 Twelve Months Ended June 30, 2021 (in thousands) Net loss attributable to Charah Solutions, Inc. $ (5,453 ) $
Slide 27: Non-GAAP Reconciliation Adjusted Net Loss and Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share Adjusted net loss attributable to common stockholders and Adjusted loss per basic/diluted share are non-GAAP financial measures. We define Adjusted net loss attributable to common stockholders as net loss attributabl
Slide 28: Non-GAAP Reconciliation Adjusted Free Cash Flow
Non-GAAP Reconciliation Adjusted Free Cash Flow We define Adjusted free cash flow as cash flows from operating activities, cash and restricted cash received from ERT transactions and proceeds from the sales of property and equipment, less cash used for capital expenditures. We include cash and restr
Slide 29: Non-GAAP Reconciliation Adjusted Free Cash Flow
Non-GAAP Reconciliation Adjusted Free Cash Flow We define Adjusted free cash flow as cash flows from operating activities, cash and restricted cash received from ERT transactions and proceeds from the sales of property and equipment, less cash used for capital expenditures. We include cash and restr
Slide 30: Appendix
ast Appendix
Slide 31: Environmental Risk Transfer Services Key Differentiators
Environmental Risk Transfer Services Key Differentiators Single-source service provider of scale Significant financial resources to support ERT transactions Ability to provide turnkey solutions that include robust remediation and site repurposing plans Proven project management expertise Unmatched d
Slide 32: Coal-Fired Power Plants Process
Coal-Fired Power Plants Process Coal-fired power plants have significant and recurring environmental management needs associated with their waste byproducts which can also be leveraged as sales offerings for various industrial purposes including concrete products and cement Scrubber Sludge / Synthet
Slide 33: Routine Operations
Routine Operations RECURRING SERVICES NEED Byproduct Sales WHAT Recycling of recurring and contracted volumes of coal-fired power generation waste byproducts WHY Coal ash can be recycled as a high-quality, cost-effective raw material substitute (most commonly cement) On-site Landfill Operations WHAT
Slide 34: Charah Solutions
@ Charah Solutions
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