Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — FY2021 Earnings Presentation
21 slides from Charah Solutions's earnings presentation, Apr 1, 2022
Slide 1: Q4 and Year-End 2021 Earnings Call Presentation
Q4 and Year-End 2021 Earnings Call Presentation April 1, 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: Agenda
• Business Highlights (Scott Sewell, President and CEO) – Strong growth in new awards – Business update – ESG update • Financial Overview (Roger Shannon, CFO and Treasurer) – Fourth quarter and full-year 2021 financial review ▪ Revenue, gross profit, and Adjusted EBITDA ▪ Cash flow and Adjusted free
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: Business Highlights
▪ $840 million in new awards for full-year 2021; exceeded full-year 2020 record of $715 million ▪ Currently have more than $3.1 billion of pending proposals and have identified nearly $7.5 billion of opportunities across our businesses ▪ The January 2022 EPA ruling and infrastructure legislation exp
Slide 6: Fourth Quarter Financial Highlights
▪ Revenues increased $27.8 million as compared to Q4 2020 – Primarily due to: ▪ An increase in remediation and compliance services revenue from the commencement of new project work ▪ Partially offset by decreases in raw material sales and byproduct services ▪ Gross profit decreased $0.4 million as c
Slide 7: Full-Year 2021 Financial Highlights
▪ Revenues increased $60.8 million as compared to 2020 – Primarily due to: ▪ An increase in remediation and compliance services revenue from the commencement of new project work ▪ Partially offset by decreases in raw material sales driven by reduced supply from international sources and decreases in
Slide 8: Strong Growth in New Awards
▪ Full-year 2021 new awards of $840M exceeded record level of $715M for 2020; representing a third consecutive record year ▪ Increase in awards in past few years has been driven by customers finalizing their plans to address the regulatorily-mandated closure of more than 1,000 surface impoundments ▪
Slide 9: 2021 Financial Overview
=> Charah Solutions 2021 Financial Overview
Slide 10: Fourth Quarter Financial Review
• Revenue increased by 42.2% and Gross profit decreased by 11.4% • Net Income (loss) attributable to Charah Solutions, Inc. increased $35.2M • Adjusted EBITDA1 and Adjusted EBITDA margin1 increased primarily due to gains at our Gibbons Creek ERT project 1. Please refer to the supplemental slides in
Slide 11: 2021 Financial Review
1. Please refer to the supplemental slides in the Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP financial measure 2021 Financial Review 2021 vs. 2020 6.1%13.7%9.8%8.8% Margin Comparison ($ in millions) Margin Comparison Adjusted EBIT
Slide 12: 2021 Financial Review Cash Flow Update
2021 Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $ (5.8) Change in W/C (4.4) Operating cash flow $ (10.2) Proceeds from the sales of real estate, property and equipment $ 36.4 Cash and restricted cash from ERTs 34.9 Capex Maintenance and growth (8.5) Adjusted fre
Slide 13: Balance Sheet and Liquidity
▪ Liquidity of $33.8M: • Unrestricted Cash: $24.3M • Availability under ABL: $9.5M ▪ Gross and net leverage ratios of 4.1x and 3.5x, respectively 1. Represents continuing operations only. Adjusted EBITDA is a non-GAAP measure. Please refer to the supplemental slides in the Appendix for a reconciliat
Slide 14: 2022 Guidance
2022 Guidance 2022 Guidance 2021 Actual Revenue $325 - $365 $293.2 Net loss attributable to Charah Solutions, Inc. $8 - $12 $5.8 Adjusted EBITDA1 $35 - $40 $40.1 Adjusted Free cash flow1 $5 - $15 $52.6 ($ in millions) ▪ This guidance is based on our current expectations of no material worsening of t
Slide 15: Appendix
=> Charah Solutions APPENDIX
Slide 16: Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin 1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. 3. Adjusted EBITDA margin is a n
Slide 17: Non-GAAP Reconciliation Adjusted EBITDA for Three and Twelve Months Ended December 31, 2021
Non-GAAP Reconciliation Adjusted EBITDA for the Three and Twelve Months Ended December 31, 2021 Nine Months Ended September 30, 2021 Three Months Ended December 31, 2021 Year Ended December 31, 2021 (in thousands) Net (loss) income attributable to Charah Solutions, Inc. $ (7,130) $ 1,316 $ (5,814) I
Slide 18: Non-GAAP Reconciliation Adjusted Net Loss and Adjusted 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, severance costs and other miscellaneous items. 2. Represents the effective tax rate of 14.9% and 4.1% for the three months ended December 3
Slide 19: 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 20: Revenue and Gross Profit by Quarter
1. Represents amounts for continuing operations only. Q1 2021 Q2 2021 Q3 2021 Q4 2021 Full-year 2021 (in thousands) Byproduct services $ 26,473 $ 23,392 $ 26,878 $ 24,612 $ 101,355 Construction contracts 19,939 31,713 48,176 60,804 160,632 Raw material sales 5,695 8,413 9,107 8,017 31,232 Total reve
Slide 21: Unmatched Breadth of Services
Unmatched Breadth of Services Charah Solutions provides a broad suite of solutions for our customers’ most complex environmental challenges