Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — Q3 2020 Earnings Presentation
17 slides from Charah Solutions's earnings presentation, Nov 10, 2020
Slide 1: Q3 2020 Earnings Call Presentation
Q3 2020 Earnings Call Presentation November 11, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation and our accompanying comments include “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,” “e
Slide 3: Agenda
Agenda . Business Highlights (Scott Sewell, President and CEO) – Business update – Our significant accomplishments – Third quarter 2020 financial highlights – Regulatory and legislative update . Financial Overview (Roger Shannon, CFO and Treasurer) – Third quarter 2020 financial review o Revenue, gr
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: Significant Accomplishments Third Quarter 2020
Significant Accomplishments Third Quarter 2020 $1.2 billion in new awards through Q3, exceeding last year’s record of $583 million – ~$950 million of new awards within our nuclear services component primarily driven by the Exelon contract extension from July 2022 to August 2025 – ~$280 million in
Slide 6: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights . Revenues decreased $2.4 million as compared to Q3 2019 – Driven by: . (i) lower byproduct sales stemming from reduced supply availability; and, . (ii) lower nuclear services revenue – Partially offset by new remediation and fossil services projects . Gross profit decre
Slide 7: Third Quarter Financial Overview
Third Quarter Financial Overview 7
Slide 8: Q3 2020 Financial Review
Q3 2020 Financial Review ($ in millions) . Revenue decreased by 2.0% primarily Q3 2019 vs. Q3 2020 due to lower byproduct sales and nuclear services revenue Net Loss Attributable to Revenue Gross Profit Adjusted EBITDA1 . Gross profit decreased by 13.1%, Charah Solutions, Inc. primarily driven by lo
Slide 9: Q3 2020 Financial Review: Business Segment Performance
Q3 2020 Financial Review Business Segment Performance (GAAP as reported: $ in millions) Environmental Solutions Maintenance & Technical Services Revenue Gross Profit Revenue Gross Profit $75 $46 $46 $73 $7 $7 $6 $6 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 14.8% 14.2% 9.4% 7.6%
Slide 10: Q3 2020 Financial Review: Cash Flow Update
Q3 2020 Financial Review Cash Flow Update ($ in millions) Cash flow from operations (pre-changes in $5.7 W/C) Disciplined cash management while ramping up for the fall nuclear Change in W/C (4.0) outage season Operating cash flow $1.7 Capex Maintenance and growth $(1.4) Positive free cash flow despi
Slide 11: Debt & Leverage
Debt & Leverage As of As of $ Millions 9/30/2020 12/31/2019 . Liquidity of $39M as of Cash and Restricted Cash $39 $5 9/30/2020: Less: Restricted Cash ($9) ($1) – Unrestricted Cash: $30M Unrestricted Cash and Equivalents $30 $4 – Revolver1: $9M Revolving Credit Facility $26 $19 . Expect leverage rat
Slide 12: 2020 Updated Guidance
2020 Updated Guidance ($ in millions) Guidance Revenue $545 Adjusted EBITDA1 $33 Net loss attributable to Charah Solutions, Inc. $21 . Guidance has been lowered as a result of (i) decreased ash production driven by the COVID-19 pandemic affecting both our byproduct sales and daily ash operations vol
Slide 13: Appendix
=> Charah Solutions APPENDIX
Slide 14: Non-GAAP Reconciliation: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin We define Adjusted EBITDA as net loss attributable to Charah Solutions, Inc. before loss on extinguishment of debt, impairment expense, interest expense, income taxes, depreciation and amortization, equity-based compensation, non-rec
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA for Twelve Months Ended September 30, 2020
Non-GAAP Reconciliation Adjusted EBITDA for the Twelve Months Ended September 30, 2020 1. Represents non-recurring legal costs and expenses, which amounts are not representative of those that we historically incur in the ordinary course of our business. Negative amounts represent insurance recoverie
Slide 16: Non-GAAP Reconciliation: Adjusted Net Loss and Adjusted Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share Adjusted net loss attributable to Charah Solutions, Inc. and Adjusted loss per basic/diluted share are non-GAAP financial measures. We define Adjusted net loss attributable to Charah Solutions, Inc. as net loss attri
Slide 17: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow We define free cash flow as cash flows from operating activities, less cash used for capital expenditures, net of proceeds. W e exclude capital expenditures because we consider them to be a necessary component of our ongoing operations. We consider free cash fl