Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q4 2020 Earnings Presentation
20 slides from Onterris's earnings presentation, Mar 24, 2021
Slide 1: The Future of Environmental Solutions
The Future of Environmental Solutions Fourth Quarter 2020 Earnings Call March 24, 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: 2020 Highlights
2020 Highlights Q4 2020 Full Year 2020 • 2020 execution drove strong results Revenue Revenue and business momentum • Team was dedicated, collaborated +60% +40% and remained committed to clients to $108.7M to $328.2M through the pandemic Adj. EBITDA(1) Adj. EBITDA(1) • New business wins provided for
Slide 6: Strong Record of Profitable Growth Continues in 2020
Strong Record of Profitable Growth Continues in 2020 Multiple Levers to Drive Growth Revenue • Continued market share gains through ($ in millions, Dec FYE) ORGANIC cross-selling opportunities and $328 GROWTH 2016 – 2020 technology innovation CAGR: 30% $234 $189 $138 $115 STRATEGIC • Strategic acqui
Slide 7: Our Mission – Helping Protect the Air We Breathe, the Water We Drink, and the Soil
Our Mission – Helping Protect the Air We Breathe, the Water We Drink, and the Soil That Feeds Us – is Driving our Financial Success Cleaner Water Back to Improved Air Quality Communities Our innovation around real time Our unique PFAS treatment solutions are measurement of contaminants coupled suppo
Slide 8: Multiple Facets Driving Growth
Multiple Facets Driving Growth Organic Growth: 17% combined organic growth in 2020 including CTEH; 4% organic growth in 2020 excluding CTEH(1). Recurring Revenue: Continued high customer satisfaction and retention, resulting in +90% of revenue repeating in 2020 from clients in 2019 (consistent w
Slide 9: MSE Acquisition Aligned With Growth Strategy
MSE Acquisition Aligned With Growth Strategy MSE fits within our proven M&A strategy to optimize value and create opportunities MSE Acquisition Overview Strategic Rationale & Revenue Synergies • Acquired in January 2021 Geographic expansion: strong presence in southeast US and Gulf states. Synergi
Slide 10: 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 11: At Montrose, ESG is Our Business
At Montrose, ESG is Our Business Environment - Continued success with treating water, measuring/reducing greenhouse gases, and creating negative carbon intensive renewable energy. Governance - ESG formally overseen by Board; Montrose expects to publish ESG evolution report (additional metrics an
Slide 12: Financial Overview
Financial Overview
Slide 13: Q4 2020 Revenue & Adjusted EBITDA Performance
Q4 2020 Revenue & Adjusted EBITDA(2) Performance Q4 2020 Revenue ($ in mm) • Solid revenue growth of 60% YoY during Q4 $109 • Excluding discontinued service lines(1), revenue increased 67% YoY during Q4 $68 • Strong Q4 Adjusted EBITDA(2) growth • Up 74% YoY to $18.3 million Q4 2019 Q4 2020 • Adjuste
Slide 14: Full Year 2020 Performance
Full Year 2020 Performance Total Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $98.5 $24.2 $328.2 $54.5 $3.8 $233.9 $31.2 $18.4 $7.6 $21.1 13.4% 16.6% 35.9% 24.6% (1) Revenue Adjusted EBITDA Revenue Adjusted EBITDA 2019 2020 2019 2020 2019 2020 2019 2020 Measure
Slide 15: Attractive Capital Structure
Attractive Capital Structure Commentary • Flexible balance sheet to pursue investments in innovation and acquisitions in highly fragmented industry • Montrose has $84.4 million of liquidity, including $34.4 million of cash and $50.0 million of availability under its revolving credit facility as of 1
Slide 16: 2021 Growth Outlook
2021 Growth Outlook Adjusted EBITDA margin(1) anticipated Adjusted EBITDA(1) to be in range of 16.0% to 17.0%. ($ in mm) Growth based on a combination of mid-to-high single digit organic $61 - $67 growth plus the contribution of completed acquisitions. $55 Strong start to 2021 and continued business
Slide 17: 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 18: Appendix
Appendix
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 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 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (1) Represents non-cash stock-based compensation expenses related to option awards issued to employees and restricted stock grants issued to directors. (2) During the years ended December 31, 2020 and 2019, start-up losses related to losses incurred on (i) the expansio
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