Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q4 2021 Earnings Presentation
20 slides from Onterris's earnings presentation, Mar 1, 2022
Slide 1: The Future of Environmental Solutions
The Future of Environmental Solutions Fourth Quarter 2021 Earnings Call March 1, 2022
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: 2021 Highlights
2021 Highlights Full Year 2021 • Strong 2021 results driven by solid execution and demand momentum for our best-in-class Revenue Organic Growth • environmental solutions Regulatory momentum, ESG and stakeholder $546.4M +37% pressures, a higher frequency of environmental +66% Year-over-Year +17% excl
Slide 5: 2021 Key Accomplishments
2021 Key Accomplishments ✓ Organic Growth Ahead of Market: 37% organic growth in 2021 including CTEH; 17% organic growth in 2021 excluding CTEH(1) compared to the estimated ~2% market growth rate(2). ✓ Recurring Revenue(3): Excluding CTEH, our emergency response business, continued high customer sat
Slide 6: Strong Record of Profitable Growth
Strong Record of Profitable Growth Multiple Levers to Drive Growth Revenue • Continued market share gains through ($ in millions, Dec FYE) ORGANIC $546 business development and technology GROWTH 2016 – 2021 innovation CAGR: 37% $328 $234 $189 STRATEGIC • Strategic acquisition opportunities in $138 A
Slide 7: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Assessment, Permitting & Measurement & Remediation & Reuse Response Analysis Ecosystem Regulatory Response Testing Lab LDAR Biogas Soil/Water Climate Change & Event Driv
Slide 8: Recent M&A Overview
MEG Acquisitions and New Business Recent M&A Acquisition Date Rationale Overview FY22 Q1 ▪ Internationally recognized environmental consulting firm providing services across diverse end markets ▪ Further strengthens chemistry and auditing services in the US East Coast • Successfully completed a numb
Slide 9: Financial Overview
Financial Overview
Slide 10: Full Year and Q4 2021 Revenue Performance
Full Year and Q4 2021 Revenue Performance Full Year 2021 Revenue ($ in mm) • Solid revenue growth of 66% YoY in 2021 and 32% YoY during Q4 $546 • Excluding discontinued service lines(1), revenue increased 68% YoY in 2021 $328 • Annual and quarterly growth in all segments 2020 2021 • Exceptional orga
Slide 11: Full Year and Q4 2021 Adjusted EBITDA Performance
Full Year and Q4 2021 Adjusted EBITDA(1) Performance Full Year 2021 Adjusted EBITDA(1) ($ in mm) • Strong 2021 Adjusted EBITDA(1) $78 • Up 43% YoY to $77.6 million $54 • Q4 Adjusted EBITDA(1) in-line with expectations • Flat YoY to $18.4 million given higher corporate costs 2020 2021 Margin(1) % 16.
Slide 12: Full Year 2021 Performance
Full Year 2021 Performance Total Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $261.9 $57.1 $546.4 $77.6 $231.5 $54.5 $328.2 $24.2 $98.5 $82.4 16.6% 14.2% 24.6% 21.8% (1) Revenue Adjusted EBITDA Revenue Adjusted EBITDA 2020 2021 2020 2021 2020 2021 2020 2021 Mea
Slide 13: Base Business Revenues on Solid Trajectory into 2022
Base Business Revenues on Solid Trajectory into 2022 Well Positioned for Further Growth in Base Business Revenue into 2022 Revenue ($M) $546 ~$545(4) “Base Business” Revenue of ~$400M in 2021 ~$147 $324(1) ~$85(2) ~$31 ~$53(2) $215(1) $169(1) $315 $215(1) $241(1) $169(1) 2018 2019 2020 2021 2022E ME
Slide 14: Attractive Capital Structure
Attractive Capital Structure Commentary • Flexible balance sheet to pursue investments in innovation and acquisitions in highly fragmented industry • Montrose has $271.3 million of liquidity, including $146.3 million of cash and $125.0 million of availability under its revolving credit facility as o
Slide 15: 2022 Outlook
2022 Outlook Revenue expected to be in the range of Revenue $520-$570 million. Adjusted EBITDA(1) ($ in mm) anticipated to be in the range of $73-$78 $520 - $570 $546 million. 2022E outlook assumes revenue growth comprised of double digit organic growth excluding CTEH plus the contribution of comple
Slide 16: 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 applicat
Slide 17: Appendix
Appendix
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 • 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 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 20
Montrose Environmental Group — Q4 2021 Earnings Presentation on 6ix