Slide 1: Q2 2021 Earnings Call Presentation
Q2 2021 Earnings Call Presentation August 10, 2021 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) – Progress update – Strong growth in new awards • Financial Overview (Roger Shannon, CFO and Treasurer) – Second quarter 2021 financial review ▪ Revenue, gross profit, and Adjusted EBITDA ▪ Cash flow and Adjusted free cash flow – Debt and lever
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: Progress Update
• $685 million in new awards YTD 2021; on pace to significantly exceed last year's record of $715 million • Continued success with ERT services, with a binding agreement announced to acquire the Avon Lake, OH facility in 2022 • Demolition of the Gibbons Creek, TX power plant and remediation of ash p
Slide 6: Q2 2021 Financial Highlights
• Revenues increased $11.2 million as compared to Q2 2020 – Driven by: ▪ An increase in remediation and compliance services revenue from new projects ▪ Partially offset by lower fossil services and byproduct sales revenue • Gross profit increased $1.7 million as compared to Q2 2020 – Primarily due t
Slide 7: Strong Growth in New Awards
Strong Growth in New Awards • Record $715M of new awards in 2020, driven by Dominion Energy project. • We are on pace to significantly exceed this record based on YTD 2021 new awards of $685M. • Increase in awards in 2019, 2020 and YTD 2021 as compared to 2018 driven by an increase in customer award
Slide 8: 2021 Financial Overview
=> Charah Solutions 2021 Financial Overview
Slide 9: Second Quarter Financial Review
• Revenue increased by 21.4%, primarily driven by an increase in remediation and compliance from new project work, partially offset by a decrease in byproduct sales revenue and fossil service revenue. • Gross profit increased by 32.9%, primarily driven by the factors noted above and an increase in g
Slide 10: Second Quarter Financial Review: Cash Flow Update
Second Quarter Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $ 1.6 Change in W/C (5.4) Operating cash flow $ (3.8) Proceeds from the sales of property and equipment $ 3.8 Capex Maintenance and growth (0.4) Land improvements (0.9) Adjusted free cash flow1 $ (1.3) ($
Slide 11: Debt & Leverage
$ Millions As of 6/30/2021 As of 3/31/2021 As of 12/31/2020 Cash and Restricted Cash $ 58 $ 72 $ 29 Less: Restricted Cash (40) (48) (4) Unrestricted Cash and Equivalents $ 18 $ 24 $ 25 Revolving Credit Facility $ 13 $ 19 $ 12 Equipment Financing and Other 33 28 29 Term Loan 119 123 125 Total Debt $
Slide 12: 2021 Guidance
2021 Guidance Guidance Revenue $260 - $300 Net loss attributable to Charah Solutions, Inc. ($5) - $0 Adjusted EBITDA1 $35 - $40 Adjusted Free cash flow1 $33 - $38 ($ in millions) • Results for the second half of this year should benefit from an increased contribution from our Gibbons Creek ERT proje
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 1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility and other miscellaneous items. 3. Adjusted EBITDA margin is a non-GAAP financial measure that represent
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA for Twelve and Six Months Ended June 30, 2021
Non-GAAP Reconciliation Adjusted EBITDA for the Twelve and Six Months Ended June 30, 2021 1. Represents amounts for continuing operations only. 2. Represents expenses associated with the Amendment to the Credit Facility and other miscellaneous items. Six Months Ended June 30, 2021 Twelve Months Ende
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA for Twelve and Three Months Ended March 31, 2021
Non-GAAP Reconciliation Adjusted EBITDA for the Twelve and Three Months Ended March 31, 2021 Three Months Ended March 31, 2021 Twelve Months Ended December 31, 2020 Three Months Ended March 31, 2020 Twelve Months Ended March 31, 2021 (in thousands) Net loss attributable to Charah Solutions, Inc. $ (
Slide 17: 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 amounts for continuing operations only and is related to expenses associated with the Amendment to the Credit Facility and other miscellaneous items. 2. Represents the effective tax rate of 1.8% and 0.0
Slide 18: 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 19: 2020 Revenue Breakdown by Quarter
1. Represents amounts for continuing operations only. First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands) Byproduct sales $ 21,761 $ 21,400 $ 22,940 $ 18,524 Construction contracts 14,847 15,347 21,590 29,021 Services 14,669 15,557 18,586 18,135 Total revenue $ 51,277 $ 52,304 $