Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q1 2022 Earnings Presentation
22 slides from Onterris's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Call
First Quarter 2022 Earnings Call May 10, 2022
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 > \ MONTRO: SE Wl ENVIRO
Slide 4: Highlights Q1 2022
Highlights Q1 2022 • Strong demand for our environmental solutions continued into 2022 Revenue Organic Growth(1) • Continue to see outsized growth opportunity from PFAS $134.7M Double-Digit% remediation, greenhouse gasses, and renewables +1% Year-over-Year excl. CTEH • Revenue up 1% year-over-year w
Slide 5: Strong Record of Long-term Profitable Growth
Strong Record of Long-term Profitable Growth Multiple Levers to Drive Growth Revenue ($ in Millions, Dec FYE) $546 $547 2016-Q1 2022 LTM CAGR: 35% Continued market share gains through ORGANIC business development and technology $328 GROWTH innovation $234 $189 $138 $115 STRATEGIC Strategic acquisiti
Slide 6: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Assessment, Permitting & Measurement & Analysis Remediation & Reuse Response Ecosystem Regulatory Response Testing Lab LDAR Biogas Soil/Water Climate Change & Event Driv
Slide 7: Recent M&A Overview
Recent M&A Overview • Successfully completed a number of value- enhancing acquisitions 2014in 2021 and 2022 2014 • Consistently target additive services, geographies, clients and technologies • Demonstrated ability to successfully integrate, cross-sell and create revenue synergies over time • Acquis
Slide 8: Financial Overview
Financial Overview
Slide 9: Q1 2022 Revenue & Adjusted EBITDA Performance
Q1 2022 Revenue & Adjusted EBITDA(1) Performance Q1 2022 Revenue ($ in Millions) Q1 Revenue growth driven by strong double- digit organic growth excluding CTEH plus $133.8 $134.7 accretive acquisitions more than offsetting the expected decline in CTEH revenues • Up 1% YoY to $134.7 million Q1 Adjust
Slide 10: Q1 2022 Segment Performance
Q1 2022 Segment Performance Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $133.8 $134.7 $75.3 $70.4 $45.6 $15.8 $23.1 $23.9 $9.6 17.3% 17.8% $29.9 21.0% 21.1% Revenue Adjusted EBITDA Revenue Adjusted EBITDA Q1 21 Q1 22 Q1 21 Q1 22 Q1 21
Slide 11: Attractive Capital Structure
Attractive Capital Structure Commentary Market Capitalization • Flexible balance sheet to pursue investments in innovation and acquisitions Preferred in highly fragmented industry Equity • Montrose has $218.8 million of liquidity, $182M(3) including $93.8 million of cash and $125 million of availabi
Slide 12: Outlook
@\ MONTROSE ENVIRONMENTAL
Slide 13: Base Business Revenues on Solid Trajectory into 2022
Base Business(1) Revenues on Solid Trajectory into 2022 Well Positioned for Further Growth in Base Business(1) Revenue in 2022 “Base Business(1)” ~$545(5) Revenue of ~$400M in $546 Revenue ($M) 2021 expected to grow ~$0-20 to ~$535M in 2022 ~$75-95(3) ~$147 $324(2) ~$85(3) ~$31 $215(2) ~$53(3) $169(
Slide 14: 2022 Outlook
2022 Outlook Current Outlook Aligned With Long-term Expectation for Base Business Revenue(2) Growth on Average in Excess of 20% Per Year For Foreseeable Future Revenue expected to be in the range of $520-$570 Revenue ($ in Millions) million. Adjusted EBITDA(1) anticipated to be in the $546 $520 - $5
Slide 15: Investment Highlights
Investment Highlights ESG is who we are – 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
Slide 16: Appendix
Appendix @\ MONTROSE ENVIRONMENTAL
Slide 17: Working Across Montrose to Help Solve the Global GHG Problem
Working Across Montrose to Help Solve the Global GHG Problem STEP #1 Environmental Challenge: O&G industry’s operations represent 9% of human-made Deep Understanding greenhouse gas (GHG) emissions. Stakeholders, including the And Working Knowledge SEC's newly proposed climate change disclosure rules
Slide 18: PFAS - European Expansion
PFAS - European Expansion Start Date Pre-2022 2022 • Prior to installing a full-scale PFAS removal system, “Pilot” studies (or technology SWEDEN demonstrations) are conducted for up to twelve months to ensure treatment objectives can be met given the unique water and geologic conditions at each site
Slide 19: Working Across Montrose to Help Solve the Global PFAS Problem
Working Across Montrose to Help Solve the Global PFAS Problem Environmental Challenge: PFAS are widely used, long lasting chemicals components which break down very slowly over time in water, air and soil Remediation Outlook: PFAS remediation expenditures in the U.S. are estimated to surpass $160 bi
Slide 20: Summary of Oaktree A-2 Preferred
Summary of Oaktree A-2 Preferred Investment Summary Post-IPO Terms Governance • In April 2020, Oaktree Capital • No fixed maturity date • One Oaktree representative purchased $175mm of Series A-2 remains on the Montrose board Preferred Equity to fund the cash - Repayable in cash at Company’s of dire
Slide 21: 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 22: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation © 2022 Montrose Environmental Group, Inc. Proprietary. 22
Montrose Environmental Group — Q1 2022 Earnings Presentation on 6ix