Slide 1: Q1 2022 Earnings Call Presentation
Q1 2022 Earnings Call Presentation May 11, 2022 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) – Business Update and Events – Q1 2022 Financial Highlights – Year-To-Date New Awards • Financial Overview (Roger Shannon, CFO and Treasurer) – First Quarter 2022 Financial Review ▪ Revenue, Gross Profit, Net Loss Attributable to Charah Solutio
Slide 4: Business Highlights
=> Charah Solutions Business Highlights
Slide 5: Business Update First Quarter 2022
▪ $87.7 million in new business awards year-to-date in 2022 ▪ Awarded two new environmental risk transfer (ERT) projects in April 2022 with GenOn Energy ▪ Avon Lake (Ohio) ▪ Cheswick (Pennsylvania) ▪ Work continues to progress on the Gibbons Creek ERT project ▪ Strong scrap material sales during Q1
Slide 6: First Quarter 2022 Financial Highlights
▪ Revenues increased $13.9 million as compared to Q1 2021 – Primarily due to: ▪ An increase in remediation and compliance services revenue from new projects; and ▪ An increase in raw material sales of $5.5 million from an increase in shipments. ▪ Gross profit decreased $9.4 million as compared to Q1
Slide 7: Strong Year-to-Date Awards
232 106 430 715 840 88 2017 2018 2019 2020 2021 YTD 2022 0 250 500 750 ▪ YTD 2022 new awards of $88M ▪ Expect that pace of 2022 awards will accelerate once potential impacts from EPA regulations announced in January 2022, as well as the Bipartisan Infrastructure Law, are better understood by custome
Slide 8: 2022 Financial Overview
=> Charah Solutions 2022 Financial Overview
Slide 9: First Quarter Financial Review
1. Please refer to the supplemental slides in the Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP financial measure First Quarter Financial Review Q1 2022 vs. Q1 2021 18.3%0.5%10.7%(5.7%) Margin Comparison ($ in millions) Margin Compar
Slide 10: First Quarter Financial Review: Cash Flow Update
First Quarter Financial Review Cash Flow Update Cash flow from operations (pre-changes in W/C) $ (10.1) Change in W/C (13.8) Operating cash flow $ (23.9) Net proceeds from the sales of real estate, property and equipment $ 3.1 Capex Maintenance and growth (1.3) Land improvements (0.8) Adjusted free
Slide 11: Balance Sheet and Financing Update
▪ Liquidity of $25.4M: • Unrestricted Cash: $11.2M • Availability under ABL: $14.2M ▪ Gross and net leverage ratios of 5.7x and 5.3x, respectively 1. Represents continuing operations only. Adjusted EBITDA is a non-GAAP measure. Please refer to the supplemental slides in the Appendix for a reconcilia
Slide 12: 2022 Guidance
2022 Guidance ($ in millions) 2022 Guidance Revenue $325 - $365 Net loss attributable to Charah Solutions, Inc. $8 - $12 Adjusted EBITDA1 $35 - $40 Adjusted Free cash flow1 $5 - $15 ($ in millions) ▪ Reiterating the guidance ranges given on our fourth quarter call ▪ Impacts of our first-quarter resu
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 expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. 2. Adjusted EBITDA margin is a non-GAAP financial measure that represents the ratio of
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA for Twelve and Three Months Ended March 31, 2022
1. Represents expenses associated with the Amendment to the Credit Facility, non-recurring legal costs and expenses and other miscellaneous items. Non-GAAP Reconciliation Adjusted EBITDA for the Twelve and Three Months Ended March 31, 2022 Three Months Ended March 31, 2022 Twelve Months Ended Decemb
Slide 16: 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 expenses associated with the Amendment to the Credit Facility and other miscellaneous items. Negative amounts represent settlement recoveries related to these matters. 2. Represents the effective tax ra
Slide 17: 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 real estate, property and equipment, less cash used for capital expenditures. We include c