Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q3 2023 Earnings Presentation
23 slides from Onterris's earnings presentation, Nov 8, 2023
Slide 1: Third Quarter 2023 Earnings Call
Third Quarter 2023 Earnings Call November 8, 2023
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: Highlights Q3 2023
Highlights Q3 2023 • Record levels of Consolidated Adj. EBITDA(1), Consolidated Adj. EBITDA(1) as a percentage of sales Revenue Adjusted EPS (1) increases, and strong cash flow given continued optimization of service portfolio and the impact of $167.9M $0.18 acquisitions Up 28.9% YoY to a Quarterly
Slide 5: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Ecosystem Regulatory Remediation Response Air Testing Laboratory Renewable Water Treatment Climate Change & Event Driven Response ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Greenhouse Gas Mitigati
Slide 6: 2023 M&A Overview
2023 M&A Overview • Successfully completed five 2014 2014 value-enhancing acquisitions in 2023 • Consistently targeted additive services, geographies, clients and technologies • Demonstrated ability to effectively integrate, cross-sell and create synergies • Acquisition pipeline remains robust • Str
Slide 7: Financial Overview
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Slide 8: Q3 and YTD Q3 2023 Revenue Performance
Q3 and YTD Q3 2023 Revenue Performance Q3 2023 Revenue As Reported and Excluding Discontinued Businesses(1) Strong revenue growth in 2023 ($ in Millions) $167.9 • Q3 revenue up 28.9% to $167.9M, as reported $130.3 • Q3 YTD revenue grew 13.2% to $458.5M, as reported $125.7(1) $165.9(1) • Q3 and YTD Q
Slide 9: Q3 and YTD Q3 2023 Consolidated Adjusted EBITDA Performance
Q3 and YTD Q3 2023 Consolidated Adjusted EBITDA(1) Performance Q3 2023 Consolidated Adjusted EBITDA(1) As Reported and Excluding Discontinued Businesses and Start-up Losses in 2022(2) Sustained Consolidated Adjusted EBITDA(1) ($ in Millions) growth and margin expansion $23.3 $17.1 • Q3 and YTD Q3 Co
Slide 10: Q3 2023 Segment Performance
Q3 2023 Segment Performance Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $167.9 $14.9 $130.3 $32.7 $57.0 $46.4 $25.3 $9.8 19.4% 19.5% 21.2% 26.1% Revenue Operating Segment Adjusted EBITDA Revenue Operating Segment Adjusted EBITDA Q3 22
Slide 11: YTD Q3 2023 Segment Performance
YTD Q3 2023 Segment Performance Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $404.9 $458.5 $89.3 $170.6 $43.0 $74.2 $142.1 $30.3 18.3% 19.5% 21.3% 25.2% Revenue Operating Segment Adjusted EBITDA Revenue Operating Segment Adjusted EBITDA
Slide 12: Attractive Capital Structure
Attractive Capital Structure Commentary Equity Market Capitalization • Flexible balance sheet to pursue Preferred investments in innovation and acquisitions Equity in highly fragmented industry $182M(3) • Montrose has $148.2 million of liquidity, including $23.2 million of cash and $125.0 million of
Slide 13: Outlook
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Slide 14: Reiterated 2023 Outlook
Reiterated 2023 Outlook Outlook Optimism Due to Market Tailwinds, Strong Growth and Margin Optimization Revenue • Revenue is expected to be in the range of $590- ($ in Millions) $590 - $640 $544(2) $640 million and Consolidated Adjusted EBITDA(1) is expected to be in the range of $75 million to $81
Slide 15: Investment Highlights
Investment Highlights Significant scale with global The environment is reach in large, growing and highly our business fragmented industry Proven ability to identify, Strong financial performance execute and integrate with consistent track record acquisitions with a strong of growth & cash flow gene
Slide 16: Appendix
Appendix
Slide 17: Q3 2023 Segment Performance, Excluding Discontinued Businesses and Adjustment for Prior Year Start-up Losses
Q3 2023 Segment Performance, Excluding Discontinued Businesses and Adjustment for Prior Year Start-up Losses Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $165.9 (1) $14.9 $32.7 $57.0 $125.7 (1) $46.4 $24.5(2) $9.7(2) 19.5% 19.7% 20.9% 2
Slide 18: 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 • Oaktree has the right to Capital purchased $175mm appoint one representative - Repayable in cash at Company’s on the Montrose board of of Series A-2 Preferred option (sub
Slide 19: 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 of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Consolidated Adj
Slide 20: Reconciliation of Net Loss to Adj. Net Income and Adj. EPS
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adj. Net Income and Adj. EPS (In thousands except per share amounts) For the Three Months Ended For the Nine Months September 30, Ended September 30, 2023 2022 2023 2022 Net loss $ (7,525) $ (5,720) $ (29,418) $ (21,007) (1) Amortizati
Slide 21: Reconciliation of Net Loss to Adj. Net Income and Adj. EPS
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adj. Net Income and Adj. EPS (In thousands except per share amounts) Quarter Ended Year Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2022 2022 2022 2022 2022 Net loss
Slide 22: Reconciliation of Net Loss to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Consolidated Adjusted EBITDA (In thousands) For the Three Months Ended For the Nine Months September 30, Ended September 30, 2023 2022 2023 2022 Net loss $ (7,525) $ (5,720) $ (29,418) $ (21,007) Interest expense 2,089 1,400 5,507 4,01
Slide 23: Reconciliation of Net Loss to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Consolidated Adjusted EBITDA (In thousands) Quarter Ended Year Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, (a) 2023 2023 2023 2022 2022 2022 2022 2022 Net loss $ (7,525) $ (7,174) $
Montrose Environmental Group — Q3 2023 Earnings Presentation on 6ix