Charah Solutions, Inc. · OTC:CHRB
Charah Solutions — FY2019 Earnings Presentation
24 slides from Charah Solutions's earnings presentation, Mar 26, 2020
Slide 1: Q4 and Full Year 2019 Earnings Call Presentation
Exhibit 99.2 Q4 and Full Year 2019 Earnings Call Presentation March 26, 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) – COVID-19 update – Our significant accomplishments – Fourth quarter 2019 financial highlights – Improvements in awards – Regulatory and legislative update . Financial Overview (Roger Shannon, CFO and Treasurer) – Fourth quarter and full
Slide 4: Business Highlights
=> carat Business Highlights
Slide 5: COVID-19 Update: Safety and Business Continuity Actions Taken
COVID-19 Update Safety and Business Continuity Actions Taken Charah Solutions commitment to safety is a core value and an integral component of the corporate culture . Immediate actions taken to protect our employees, customers and business, including: – New policies restricting non-essential travel
Slide 6: COVID-19 Update: Provider of Mission-Critical Services, Not Economic Dependent
COVID-19 Update Provider of Mission-Critical Services, Not Economic Dependent The foundation of Charah Solutions business model is built on consistent, mission-critical services for its customers . Resilience of operations amidst economic uncertainty – Coal-fired generation plant operators have only
Slide 7: Significant Accomplishments
Significant Accomplishments Record year of new awards won valued at $583 million on a project revenue basis; exceeded 2018 by 450% Success rate in winning awards and total number of projects won increased in 2019 as compared to 2018 Increased diversification of customer base and broadened geog
Slide 8: Q4 2019 Financial Highlights
Q4 2019 Financial Highlights . Revenues decreased 26% to $149.6 million as compared to Q4 2018 – Driven by: . (i) project completions within the remediation and compliance services component (includes completion of Brickhaven resulting from deemed termination); and, . (ii) delays in the timing of re
Slide 9: Strong Improvement in New Awards
Strong Improvement in New Awards Total Awards ($Millions) . Decline in new awards from 2016 to 2018 due to $600 $583 utility customer delays in $500 awarding projects as $416 regulations continued to $400 evolve $300 . Increase in awards in 2019 $232 as compared to 2018 due $200 to increase in utili
Slide 10: Recent Regulatory/Legislative Developments
Recent Regulatory/Legislative Developments January 2020 – Georgia’s CCR Regulatory Program Approved by EPA - Gives state government authority for regulatory oversight for the handling of coal combustion residuals - Georgia becomes second state to gain EPA approval to self regulate (Oklahoma was firs
Slide 11: Fourth Quarter and Full Year Financial Overview
Fourth Quarter and Full Year Financial Overview 11
Slide 12: Fourth Quarter 2019 Financial Review
Fourth Quarter 2019 Financial Review Revenue, Gross Profit, Net Loss Attributable to Charah Solutions, Inc., and Adjusted EBITDA1 Comparison ($ in millions) Q4 2019 vs. Q4 2018 Revenue Gross Net Loss Adjusted Profit Attributable EBITDA1 $203 to Charah Solutions, Inc. $150 $21 $23 $13 $4 $6 Q4 2018 Q
Slide 13: Full Year 2019 Financial Review
Full Year 2019 Financial Review Revenue, Gross Profit, Net Loss Attributable to Charah Solutions, Inc., and Adjusted EBITDA1 Comparison ($ in millions) FY 2019 vs. FY 2018 Revenue Gross Net Loss Adjusted Profit Attributable EBITDA1 $740 to Charah Solutions, Inc. $555 $98 $99 $40 $18 2018 2019 2018 2
Slide 14: Environmental Solutions Performance
Environmental Solutions Performance Fourth Quarter and Full Year 2019 Financial Review (GAAP as reported: $ in millions) Q4 2019 vs. Q4 2018 FY 2019 vs. FY 2018 Revenue Gross Profit Revenue Gross Profit $15 $343 $101 $69 $39 $6 $180 $12 Q4 2018 Q4 2019 Q4 2018 Q4 2019 2018 2019 2018 2019 14.8% 14.4%
Slide 15: Maintenance & Tech Svcs Performance
Maintenance & Tech Svcs Performance Fourth Quarter and Full Year 2019 Financial Review (GAAP as reported: $ in millions) Q4 2019 vs. Q4 2018 FY 2019 vs. FY 2018 Revenue Gross Profit Revenue Gross Profit $397 $375 $111 $8 $29 $102 $6 $28 Q4 2018 Q4 2019 Q4 2018 Q4 2019 2018 2019 2018 2019 6.2% 6.9% 7
Slide 16: Fourth Quarter 2019 Financial Review: Cash Flow Update
Fourth Quarter 2019 Financial Review Cash Flow Update ($ in millions) Cash flow from operations (pre-changes in $3.3 W/C) Negative change driven by Fall 2019 nuclear outage working capital Change in W/C (4.8) build with A/R collections continuing past year-end Operating cash flow $(1.5) Capex Mainte
Slide 17: Debt & Leverage
Debt & Leverage As of As of $ Millions 12/31/2018 12/31/2019 . Liquidity of $29M as of Cash and Cash Equivalents $7 $5 12/31/19: $50 Revolver – Cash: $5M $20 $19 – Revolver1: $19M Equipment Financing and Other $35 $37 – DDTL2: $5M Senior Secured Term Loan $199 $149 . Expect leverage ratio to rise in
Slide 18: 2020 Guidance
2020 Guidance ($ in millions) Guidance Revenue $560 Adjusted EBITDA1 $37 Net loss attributable to Charah Solutions, Inc. $15 . Revised 2020 revenue and Adjusted EBITDA1 guidance includes only existing business and executed contracts. As a result of the COVID-19 pandemic, our guidance makes no assump
Slide 19: Conclusion
=> carat Conclusion
Slide 20: Growth Potential and Drivers
Growth Potential and Drivers Expanding Pipeline Compelling Value Regulatory and Public of Opportunities Proposition to Policy Trends Driving Customers Customer Needs Very Large Installed Base of Legacy Coal Ash Disposal Ponds Still Require Remediation Power plant operators An industry leader in as
Slide 21: Appendix
@ gaat APPENDIX
Slide 22: Non-GAAP Reconciliation: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Reconciliation Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. We define Adjusted EBITDA as net (loss) income attributable to Charah Solutions, Inc. before interest expense, net, income taxes, depreciation and amortizati
Slide 23: Non-GAAP Reconciliation: Adjusted Net (Loss) Income and Per Share
Non-GAAP Reconciliation Adjusted Net (Loss) Income and Adjusted (Loss) Income Per Basic/Diluted Share Adjusted net (loss) income and Adjusted (loss) income per basic/diluted share are non-GAAP financial measures. We define Adjusted net (loss) income as net (loss) income attributable to Charah Soluti
Slide 24: 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. We exclude capital expenditures because we consider them to be a necessary component of our ongoing operations. We consider free cash flo