Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q2 2021 Earnings Presentation
19 slides from Onterris's earnings presentation, Aug 11, 2021
Slide 1: The Future of Environmental Solutions
The Future of Environmental Solutions Second Quarter 2021 Earnings Call August 11, 2021
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
Slide 4: Montrose Environmental at a Glance
Montrose Environmental at a Glance • Unique, high growth environmental solutions company with a focus on ESG Work Across Environmental Media excellence • Large and growing addressable market • Resilient revenue with repeat client base and diverse end markets 2,000+ 70+ In the USA, Employees Offices
Slide 5: Highlights
Highlights Q2 2021 1H 2021 • Solid quarterly results driven by industry Revenue Revenue tailwinds and organic growth • Increased urgency to address climate +85% +100% change, a higher frequency of to $136.2M to $270.0M environmental crises and emerging contaminants provide substantive growth opportu
Slide 6: Strong Record of Profitable Growth Continues in 2021
Strong Record of Profitable Growth Continues in 2021 Multiple Levers to Drive Growth Revenue • Continued market share gains through ($ in millions, Dec FYE) ORGANIC $463 business development and technology GROWTH 2016 – Q2 2021 innovation LTM CAGR: 36% $328 $234 $189 $138 $115 STRATEGIC • Strategic
Slide 7: Montrose Capabilities Aligned With Emerging Political and Regulatory Priorities
Montrose Capabilities Aligned With Emerging Political and Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Assessment, Permitting Measurement & Remediation & & Response Analysis Reuse Ecosystem Regulatory Response Testing Lab LDAR Biogas Soil/Water Climate Change &
Slide 8: 2021 M&A Overview
2021 M&A Overview MEG Acquisitions and New Business Successfully completed value- Acquisition Date Rationale enhancing acquisitions in 2021 so far 201 6 2017 2017 FY21 Technology platform that connects 2014 Consistently target 2014 additive services, sensors and sources of environmental geogra
Slide 9: Financial Overview
Financial Overview
Slide 10: Q2 and YTD Q2 2021 Revenue Performance
Q2 and YTD Q2 2021 Revenue Performance Q2 2021 Revenue ($ in mm) • Solid revenue growth of 85% YoY during Q2 and 100% in YTD Q2 2021 $136 • Excluding discontinued service lines(1), revenue increased 106% YoY in YTD Q2 2021 $74 • Growth in all segments(1) Q2 2020 Q2 2021 • Exceptional organic growth
Slide 11: Q2 and YTD Q2 2021 Adjusted EBITDA Performance
Q2 and YTD Q2 2021 Adjusted EBITDA(1) Performance Q2 2021 Adjusted EBITDA(1) ($ in mm) • Solid Q2 Adjusted EBITDA(1) growth $21 • Up 51% YoY to $21.0 million $14 • Strong YTD Q2 Adjusted EBITDA(1) • Up 94% YoY to $37.8 million Q2 2020 Q2 2021 • Favorable business mix Margin(1) % 18.8% 15.4% YTD Q2 2
Slide 12: Q2 2021 Segment Performance
Q2 2021 Segment Performance Total Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $70.1 $14.8 $136.2 $21.0 $65.9 $13.9 $73.8 $5.0 $18.6 18.8% 15.4% $14.6 26.8% 21.2% (1) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 2
Slide 13: Attractive Capital Structure
Attractive Capital Structure Commentary • Flexible balance sheet to pursue investments in innovation and acquisitions in highly fragmented industry • Net leverage of 3.1 as of 6/30/21 as calculated per our credit agreement(1) • In April, replaced credit agreement with a new sustainability-linked cre
Slide 14: 2021 Growth Outlook
2021 Growth Outlook Adjusted EBITDA(1) guidance increased Adjusted EBITDA(1) by $6.0 million at the midpoint. ($ in mm) 2021E outlook assumes revenue growth $70 - $75 comprised of mid-to-high single digit organic growth plus the contribution of completed acquisitions. $55 Continued strength in 2021
Slide 15: Investment Highlights
Investment Highlights ESG Is Who We Are – The Environment is Our Business Strong Financial Performance with Consistent Track Record of Growth & Cash Flow Generation Resilient Across Political and Economic Cycles with Diverse Customers and End Markets Differentiated Technology, Processes and
Slide 16: Appendix
Appendix
Slide 17: Summary of Oaktree A-2 Preferred
Summary of Oaktree A-2 Preferred Investment Summary Post-IPO Terms Governance • In April 2020, Oaktree • No fixed maturity date • One Oaktree representative Capital purchased $175mm remains on the Montrose of Series A-2 Preferred • Repayable in cash at board of directors while A-2 Equity to fund the
Slide 18: 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 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 19
Montrose Environmental Group — Q2 2021 Earnings Presentation on 6ix