Onterris, Inc. · NYSE:ONT
Onterris — Montrose Environmental Group — Q2 2022 Earnings Presentation
25 slides from Onterris's earnings presentation, Aug 9, 2022
Slide 1: Second Quarter 2022 Earnings Call
Second Quarter 2022 Earnings Call August 9, 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 > \ MONTRO: SE Wl ENVIRO
Slide 4: Highlights Q2 2022
Highlights Q2 2022 • On track to deliver on 2022 outlook based on expectations for continued organic growth across business lines and the Revenue Adj. EPS(1) normalization of CTEH revenues $139.9M $0.04 • Resilient second quarter 2022 results driven by solid +2.7% Year-over-Year Adj. Net Income(1) o
Slide 5: Strong Record of Long-term Growth
Strong Record of Long-term Growth Multiple Levers to Drive Growth ORGANIC Continued market share gains through Revenue ($ in Millions, Dec FYE) focused marketing, business development 2016-Q2 2022 LTM CAGR: 33% GROWTH and technology innovation $546 $551 STRATEGIC Strategic acquisition opportunities
Slide 6: Capabilities Aligned with Emerging Political & Regulatory Priorities
Capabilities Aligned with Emerging Political & Regulatory Priorities Focus on Environmental Matters Creates Tailwinds for Montrose Assessment, Permitting & Measurement & Analysis Remediation & Reuse Response Ecosystem Regulatory Response Testing Lab LDAR Biogas Soil/Water Climate Change & Event Driv
Slide 7: Recent M&A Overview
Recent M&A Overview • Successfully completed a number of value- enhancing acquisitions 2014in 2021 and 2022 2014 • Consistently target additive services, geographies, clients and technologies • Demonstrated ability to successfully integrate, cross-sell and create revenue synergies over time • Acquis
Slide 8: Financial Overview
Financial Overview
Slide 9: Q2 and YTD Q2 2022 Revenue Performance
Q2 and YTD Q2 2022 Revenue Performance Q2 2022 Revenue ($ in Millions) Q2 and YTD Q2 Revenue growth primarily driven by strong organic growth across most service lines plus accretive acquisitions $136.2 $139.9 more than offsetting the expected decline in CTEH revenues • Q2 up 2.7% YoY to $139.9 mill
Slide 10: Q2 and YTD Q2 2022 Consolidated Adjusted EBITDA Performance
Q2 and YTD Q2 2022 Consolidated Adjusted EBITDA(1) Performance Q2 2022 Consolidated Adjusted EBITDA(1) ($ in Millions) Q2 and YTD Q2 Consolidated Adjusted EBITDA(1) in-line with expectations $19.8 $15.6 • Q2 and YTD Q2 decline due to the normalization of CTEH revenue partly offset by improvement in
Slide 11: Q2 2022 Segment Performance
Q2 2022 Segment Performance Total Operating Segments Assessment, Permitting and Response ($ in mm; % of revenue) ($ in mm; % of revenue) $136.2 $139.9 $70.7 $28.7 $24.9 $65.9 $50.0 $14.9 $10.8 $32.1 21.0% 17.8% 21.0% 21.6% Revenue Operating Segment Adjusted EBITDA Revenue Operating Segment Adjusted
Slide 12: Attractive Capital Structure
Attractive Capital Structure Commentary Market Capitalization • Flexible balance sheet to pursue investments in innovation and acquisitions Preferred in highly fragmented industry Equity • Montrose has $223.4 million of liquidity, $182M(3) including $98.4 million of cash and $125.0 million of availa
Slide 13: Outlook
@\ MONTROSE ENVIRONMENTAL
Slide 14: Base Business Revenues on Solid Trajectory into 2022
Base Business(1) Revenues on Solid Trajectory into 2022 Well Positioned for Further Growth in Base “Base Business(1)” Revenue of Business(1) Revenue in 2022 ~$400M in 2021 expected to grow to ~$535M in 2022 $534(2) ~$545(5) Revenue ($M) ~$0-20 ~$75-95(3) ~$147 $311(2) ~$85(3) ~$31 $206(2) ~$53(3) $1
Slide 15: 2022 Outlook
2022 Outlook Current Outlook Aligned With Long-term Expectation for Base Business Revenue(1) Growth on Average in Excess of 20% Per Year For Foreseeable Future • 2022E outlook assumes revenue growth comprised of Revenue ($ in Millions) double-digit organic growth excluding CTEH plus $546 $520 - $570
Slide 16: Investment Highlights
Investment Highlights ESG is who we are – Significant scale with global ESG the environment is our business reach in large, growing and highly fragmented industry Proven ability to identify, Strong financial performance execute and integrate with consistent track record acquisitions with a strong of
Slide 17: Appendix
Appendix @\ MONTROSE ENVIRONMENTAL
Slide 18: Working Across Montrose to Help Solve the Global GHG Problem
Working Across Montrose to Help Solve the Global GHG Problem STEP #1 Environmental Challenge: O&G industry’s operations represent 9% of human-made Deep Understanding greenhouse gas (GHG) emissions. Stakeholders, including the And Working Knowledge SEC's newly proposed climate change disclosure rules
Slide 19: Working Across Montrose to Help Solve the Global PFAS Problem
Working Across Montrose to Help Solve the Global PFAS Problem Environmental Challenge: PFAS are widely used, long lasting chemicals components which break down very slowly over time in water, air and soil Remediation Outlook: PFAS remediation expenditures in the U.S. are estimated to surpass $160 bi
Slide 20: Summary of Oaktree A-2 Preferred
Summary of Oaktree A-2 Preferred Investment Summary Post-IPO Terms Governance • In April 2020, Oaktree Capital • No fixed maturity date • One Oaktree representative purchased $175mm of Series A-2 remains on the Montrose board Preferred Equity to fund the cash - Repayable in cash at Company’s of dire
Slide 21: 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, Adjusted Net Inc
Slide 22: Reconciliation Tables
Reconciliation Tables Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adjusted Net Income (in thousands) For the Three Months For the Six Months Ended June 30, Ended June 30, 2022 2021 2022 2021 Net loss $ (7,751) $ (13,148) $ (15,287) $ (26,079) Amortization of intangible assets(1)
Slide 23: Reconciliation of Net Loss to Adjusted Net Income
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Adjusted Net Income (in thousands) © 2022 Montrose Environmental Group, Inc. Proprietary. 23
Slide 24: Reconciliation of Net Loss to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Consolidated Adjusted EBITDA (in thousands) (a) Prior period amounts have been recalculated from amounts originally disclosed using the current methodology. See the Company’s Q2 2022 earnings release dated August 8, 2022 for a discussi
Slide 25: Reconciliation of Net Loss to Consolidated Adjusted EBITDA
Montrose Environmental Group, Inc. Reconciliation of Net Loss to Consolidated Adjusted EBITDA (in thousands) (a) Prior period amounts have been recalculated from amounts originally disclosed using the current methodology. See the Company’s Q2 2022 earnings release dated August 8, 2022 for a discussi
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