Slide 1: Q2 2022 Earnings Call Presentation
Q2 2022 Earnings Call Presentation August 16, 2022 Exhibit 99.2
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: Table of Contents
Table of Contents Our Business ESG Focus 2nd Quarter 2022 Business Update 2nd Quarter 2022 Financial Update Appendix
Slide 4: Our Business
= Charah Solutions Our Business
Slide 5: About Us
Founded in 1987; based in Louisville, Kentucky IPO on the New York Stock Exchange in 2018 Charah Solutions is a leading provider of mission- critical environmental services and byproduct recycling to the power generation industry. We provide on-site, essential services that enable our customer
Slide 6: Company Transformation: At IPO (2018) vs. Charah Today
Primarily a business model focused on fossil and nuclear maintenance services Little clear market differentiation; offered same or similar services as other remediation, byproducts marketing and maintenance companies Three earnings streams − Remediation and Compliance − Fossil & Nuclear Servic
Slide 7: What We Do: Business Lines
Charah Solutions Provides a Broad Suite of Solutions to Address Our Customers’ Most Complex Environmental Challenges What We Do: Business Lines Remediation & Compliance Environmental Risk Transfer (ERT) Byproduct Services Raw Material Sales Core of Charah Solutions’ work; includes ash pond and lan
Slide 8: What We Do: ERT On the Ground
▪ Environmental Risk Transfer (ERT) projects provide benefits to the environment, the customer, and Charah Solutions ▪ At the start of any ERT project, Charah Solutions takes ownership, through a special purpose subsidiary, of the land and assets associated with a decommissioned power plant What We
Slide 9: What We Do: EnviroSource
▪ EnviroSource beneficiation technology turns a waste product (fly ash) into a usable substitute for Portland cement, the most carbon intensive material in the production of concrete ▪ Modular, scalable, mobile EnviroSource units can be combined to produce from 100,000 to 300,000 tons of usable spec
Slide 10: EnviroSource Technology Is Deployment Ready
• In August 2022, Charah Solutions announced that it has been awarded the first deployment of its EnviroSource technology with a utility customer in the Western U.S. • Charah’s EnviroSource testing unit has been operational and in use for proof of concept and customer ash testing in Louisiana Enviro
Slide 11: ESG Focus
= Charah Solutions ESG Focus
Slide 12: ESG: Core to Our Business
ESG: Core to Our Business Reducing Our Customers’ Environmental Impact and Increasing Their Sustainability of Operations Are Central to Everything Charah Solutions Does Class C and Class F fly ash is beneficially used by ready mix concrete producers to make concrete. Structural fill projects in whic
Slide 13: ESG - Real, Meaningful Impact
ESG - Real, Meaningful Impact Charah Solutions Has Made Positive, Measurable Impacts Through Its Work1 1.58 million Tons of CO2 emissions prevented from recycling of CCPs 2.79 million Tons of material diverted from landfills 294 million Gallons of wastewater recycled 4,818 Acres of land reclaimed 11
Slide 14: 2nd Quarter 2022 Business Update
2nd Quarter 2022 Business Update August 16, 2022
Slide 15: Q2 Business Updates
Q2 Business Updates Second Quarter 2022 Highlights Completed acquisition of Avon Lake and Cheswick Generating Stations ERT projects for environmental remediation and redevelopment Subsequent 2022 Highlights Announced award of first EnviroSource award with utility customer Awarded multi-year fl
Slide 16: Revenue Progression
Revenue Progression $51.3 $52.3 $63.1 $65.7 $52.1 $63.5 $84.2 $93.4 $66.1 $77.1 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 M ill io ns Revenue by Quarter, 2020-2022 Long-term, embedded customer relationships with the most prominent U.S. utilities ha
Slide 17: Strong Year-to-Date Awards
▪ Company received year-to-date new awards totaling $328 million so far in 2022 ▪ Have seen increased customer engagement and increase in anticipated requests for proposal to be bid over the next two years ▪ $3.5 billion bid pipeline ▪ $10 billion tracking pipeline ▪ Expect market understanding of s
Slide 18: Contracted Backlog
▪ Following three consecutive years of record awards, Charah Solutions has built up a considerable backlog of work, which serves as its base for future projections ▪ Revenue backlog consists of ~$1.55 billion in work over the next 14 years to 2036 ▪ Backlog does not include booked ERT work and Raw M
Slide 19: 2nd Quarter 2022 Financial Update
2nd Quarter 2022 Financial Update August 16, 2022
Slide 20: Second Quarter Financial Highlights
▪ Revenues increased $13.6 million as compared to Q2 2021 – Primarily due to: ▪ An increase in remediation and compliance services revenue from new projects ▪ An increase in byproduct services revenue from new project work and increased production; and ▪ An increase in raw material sales of $5.2 mil
Slide 21: Second Quarter Financial Review Q2 2022 vs. Q2 2021
1. Please refer to the supplemental slides in the Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP financial measure Second Quarter Financial Review Q2 2022 vs. Q2 2021 10.2%3.6%10.9%3.5% Margin ($ Millions) Adjusted EBITDA1Net Loss Att
Slide 22: Second Quarter Financial Review: Cash Flow Update
Second Quarter Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $ (5.1) Change in W/C (7.9) Operating cash flow $ (13.0) Net proceeds from the sales of real estate, property and equipment $ 5.3 Cash and restricted cash received from ERT transactions $ 38.2 Capex Maint
Slide 23: Liquidity and Leverage
▪ Liquidity of $24.1 million: • Unrestricted Cash: $7.1 million • Availability under ABL: $17.0 million ▪ Gross and net leverage ratios of 6.4x and 6.2x, respectively 1. Represents continuing operations only. Adjusted EBITDA is a non-GAAP measure. Please refer to the supplemental slides in the Appen
Slide 24: 2022 Guidance
2022 Guidance ($ Millions) Updated Full Year 2022 Guidance Previous Guidance Revenue $310 - $340 $325 - $365 Net loss attributable to Charah Solutions, Inc. $10 - $30 $8 - $12 Adjusted EBITDA1 $25 - $30 $35 - $40 Adjusted free cash flow1 $5 - $10 $5 - $15 ▪ Charah Solutions has issued updated full y
Slide 25: Appendix
= Charah Solutions APPENDIX
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin 1. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. 2. Adjusted EBITDA margin is a non-GAAP financial measure that represents the ratio of
Slide 27: Non-GAAP Reconciliation: Adjusted EBITDA for Twelve and Six Months
1. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs, and expenses and other miscellaneous items. Non-GAAP Reconciliation Adjusted EBITDA for the Twelve and Six Months Ended June 30, 2022 Six Months Ended June 30, 2022 Twelve Months Ended December 31
Slide 28: Non-GAAP Reconciliation: Adjusted Net Loss and Loss Per Share
Non-GAAP Reconciliation Adjusted Net Loss and Adjusted Loss Per Basic/Diluted Share 1. Represents expenses associated with the Amendment to the Credit Facility and other miscellaneous items. Negative amounts represent settlement recoveries related to these matters. 2. Represents the effective tax ra
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 real estate, property and equipment, less cash used for capital expenditures. We include c