Charah Solutions, Inc. 8.50% Se (CHRB) 8-K Charah Solutions, Inc. Announces Second Quarter 2018 Financial Results

Exhibit 99.1

Charah Solutions, Inc. Announces Second Quarter 2018 Financial Results

Record Revenue of $195.7 Million, 163% Increase Year Over Year

Comprehensive Suite of Management and Recycling Services Drives Profitable Growth

Gross Leverage Reduced to 2.8X LTM EBITDA Following Debt Repayment with Net Proceeds of IPO

Louisville, KY – August 14, 2018–Charah Solutions, Inc. (NYSE: CHRA), a leading provider of mission-critical environmental and maintenance services to the power generation industry, today announced financial results for its second quarter ended June 30, 2018. Revenues were $195.7 million, compared to $74.4 million for the same period in 2017. Net income was $3.2 million and adjusted EBITDA¹ was $26.0 million for the second quarter of 2018.

“Our second quarter performance marked a strong start to Charah’s new era as a public company,” said Charles Price, President and Chief Executive Officer of Charah. “We generated record revenue, driven by the addition of our Nuclear Services division within the Maintenance & Technical Services segment, strong organic growth in our core businesses and the successful acquisition and integration of SCB International. We are uniquely positioned as the industry’s only broad-based environmental and maintenance services provider to capitalize on a number of attractive growth opportunities in our pipeline as we continue to increase market share and expand our offerings to growon-site services. Going forward, we are focused on strengthening our position as the market leader in environmental and maintenance services to the power generation industry and creating long-term value for our stockholders.”

KEY HIGHLIGHTS FOR THE SECOND QUARTER 2018

For the three months ended June 30, 2018, Charah generated revenue of $195.7 million, a 163% increase year over year. Gross profit increased 49% year over year to $30.5 million.

Environmental Solutions Segment:Environmental Solutions generated record revenue of $90.1 million, an increase of 46% from the second quarter a year ago, reflecting both growing ash sales and the impact of the SCB acquisition on volumes of materials sold. Gross profit increased $4.6 million, or 26%, for the three months ended June 30, 2018 to $22.1 million from $17.5 million for the three months ended June 30, 2017.

Maintenance & Technical Services Segment:Maintenance & Technical Services increased revenue to $105.6 million from $12.8 million in the same quarter a year ago. Gross profit increased $5.5 million, or 183%, for the three months ended June 30, 2018 to $8.5 million from $3.0 million for the three months ended June 30, 2017. The increases in revenue and gross profit were primarily attributable to the increased maintenance activities performed at the largest fleet of nuclear power plants in the United States.

General and administrative expense increased $11.5 million for the three months ended June 30, 2018 to $18.9 million from $7.5 million for the three months ended June 30, 2017. The increase was primarily attributable to additional expenses associated with the addition of Nuclear Services and SCB, notably $4.3 million inone-time,non-recurring andnon-operating costs.

From its completed IPO, Charah received net proceeds of approximately $59.2 million, prior to deducting offering expenses and after deducting underwriting discounts. A portion of the proceeds was used to repay approximately $40.0 million of long-term debt, which reduced gross leverage to 2.8X LTM EBITDA.

¹  Adjusted EBITDA is anon-GAAP financial measure and the reconciliation is included below.

ADDITIONAL BUSINESS UPDATES FOR THE THIRD QUARTER 2018

Following Charah’s acquisition of SCB, which was completed in the first quarter of 2018, the Company expects to open two facilities in the third quarter that will use SCB’s grinding and thermal beneficiation technologies to produce high-quality recycled products at a fraction of the cost of the competition.

The Company completed seven outages at nuclear power plantsyear-to-date and a total of 11 since it began providing maintenance services to nuclear plants in the third quarter of 2017, and expects to perform an additional seven outages in the second half of 2018.

CONFERENCE CALL

Charah will host a conference call at 8:30 a.m. ET today to discuss the second quarter results. Information contained within this press release will be referenced and should be considered in conjunction with the call.

Participants may access the conference call live via webcast on the Investor Relations section of the Charah website atir.charah.com. To participate via telephone, please dial (866)393-4306 within the United States or (734)385-2616 outside the United States, approximately 15 minutes prior to the scheduled start time. The conference ID for the call is 2358208 or “Charah Earnings”.

A webcast replay will be available on the Investor Relations section of the Charah website atir.charah.com after 12:00 p.m. ET on Tuesday, August 14, 2018. In addition, an audio replay will be available for one week following the call and will be accessible by dialing (855)859-2056 within the United States or (404)537-3406 outside the United States. The replay ID is 2358208.

ABOUT CHARAH SOLUTIONS

With 30 years of experience, Charah Solutions, Inc. is a leading provider of environmental and maintenance services to the power generation industry, with operations in coal-fired and nuclear power generation sites across the country. Based in Louisville, Kentucky, Charah assists utilities with all aspects of managing and recycling ash byproducts generated from the combustion of coal in the production of electricity as well as routine power plant maintenance and outage services for coal and nuclear energy providers. The company also designs and implements solutions for ash pond management and closure, landfill construction, fly ash and slag sales, and structural fill projects. Charah is the partner of choice for solving customers’ most complex environmental challenges, and as an industry leader in quality, safety, and compliance, the company is committed to reducing greenhouse gas emissions for a cleaner energy future. For more information, please visitwww.charah.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential,” “should,” “could,” and similar terms and phrases. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the timing of planned capital expenditures, availability of acquisitions,

economic and competitive conditions, the condition of the capital markets generally, as well as the Company’s ability to access them and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company’s business and other important factors that could cause actual results to differ materially from those projected as described in the Company’s reports filed with the SEC.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA and Adjusted EBITDA margin are not financial measures determined in accordance with GAAP.

Charah defines Adjusted EBITDA as net income before interest expense, income taxes, depreciation and amortization, equity-based compensation, elimination of certain legacy expenses, amounts from anon-acquired business line and transaction related expenses and other items. Adjusted EBITDA margin represents the ratio of Adjusted EBITDA to total revenues.

Management believes Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. Management excludes the items listed above from net income in arriving at Adjusted EBITDA because these amounts are eithernon-recurring or can vary substantially within Charah’s industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Charah’s presentation of Adjusted EBITDA should not be construed as an indication that the Company’s results will be unaffected by the items excluded from Adjusted EBITDA. Charah’s computations of Adjusted EBITDA may not be identical to other similarly titled measures of other companies. Charah uses Adjusted EBITDA margin to measure the success for the Company’s business in managing its cost base and improving profitability. A reconciliation between Adjusted EBITDA to net income, Charah’s most directly comparable financial measure calculated and presented in accordance with GAAP, along with the Company’s Adjusted EBITDA margin is included in the supplemental financial data attached to this press release.

Investor Contact

Charles W. Price

Charah Solutions, Inc.

(502)245-1353

Media Contact

Ed Trissel / Kate Clark / Tim Ragones

Joele Frank, Wilkinson Brimmer Katcher

(212)355-4449

CHARAH SOLUTIONS, INC.

Condensed Consolidated & Combined Balance Sheets

(dollars in thousands unless otherwise indicated)

(Unaudited)

	June 30, 2018			December 31, 2017
Assets
Current assets:
Cash	$	14,998		$	32,264
Trade accounts receivable		58,364			47,227
Receivable from affiliates		120			38
Costs and estimated earnings in excess of billings (“CIE”)		30,264			7,959
Inventory		20,902			1,666
Prepaid expenses and other current assets		6,899			4,644
Total current assets		131,547			93,798
Property and equipment:
Plant, machinery and equipment		68,321			42,565
Structural fill site improvements		55,760			55,760
Vehicles		15,670			16,478
Office equipment		712			638
Buildings and leasehold improvements		239			240
Structural fill sites		7,110			7,110
Total property and equipment		147,812			122,791
Less accumulated depreciation and amortization		(38,159	)		(22,861	)
Property and equipment, net		109,653			99,930
Other assets:
Trade name, net		34,931			34,330
Customer relationship, net		68,513			71,032
Technology, net		2,080			—
Non-compete and other agreements, net		1,319			—
Other intangible assets, net		75			87
Goodwill		76,431			73,468
Other assets		2,030			—
Equity method investments		5,354			5,006
Total assets	$	431,933		$	377,651
Liabilities and members’ equity
Current liabilities:
Accounts payable	$	24,322		$	15,247
Billings in excess of costs and estimated earnings (“BIE”)		7,099			15,882
Notes payable, current maturities		8,185			19,996
Accrued payroll and bonuses		17,982			16,036

	June 30, 2018		December 31, 2017
Asset retirement obligation		1,086		1,072
Purchase option liability, current portion		5,061		5,061
Accrued expenses		13,070		7,959
Other liabilities		—		198
Total current liabilities		76,805		81,451
Long-term liabilities:
Purchase option liability, less current portion		17,653		20,183
Contingent earnout liability		15,000		—
Deferred tax liability		1,919		—
Notes payable, less current maturities		216,588		227,698
Total liabilities		327,965		329,332
Commitments and contingencies (see Note 11)
Stockholders’ and members’ equity
Retained earnings		22,341		18,316
Common Stock—Charah Solutions, Inc.—$0.01 par value; 200,000,000 shares authorized, 29,082,988 shares issued and outstanding		291		—
Additional paid in capital—Charah Solutions, Inc.		80,450		—
Members’ interest—Charah, LLC Series A, no par, 200,000,000 members’ interest authorized (104,109,890 issued and outstanding) as of December 31, 2017. Series B, no par, 100,000,000 members’ interest authorized (35,199,063 issued and outstanding) as of December 31, 2017		—		19,718
Members’ interest—Allied Power Management, LLC, Series A, no par, 200,000,000 members’ interest authorized (7,210,555 issued and outstanding) as of December 31, 2017. Series B, no par, 100,000,000 members’ interest authorized (2,437,855 issued and outstanding) as of December 31, 2017		—		9,687
Total stockholders’ and members’ equity		103,082		47,721
Non-controlling interest		886		598
Total equity		103,968		48,319
Total liabilities and equity	$	431,933	$	377,651

CHARAH SOLUTIONS, INC.

Condensed Consolidated & Combined Statements of Income

(dollars in thousands unless otherwise indicated)

(Unaudited)

	Successor												Predecessor
	Three Months Ended June 30, 2018			Three Months Ended June 30, 2017			Six Months Ended June 30, 2018			Period from January 13, 2017 through June 30, 2017			Period from January 1, 2017 through January 12, 2017
Revenue	$	195,723		$	74,404		$	351,252		$	133,369		$	9,130
Cost of sales		165,174			53,910			301,605			97,146			7,301
Gross profit		30,549			20,494			49,647			36,223			1,829
General and administrative expenses		18,937			7,463			33,319			13,979			3,170
Operating income (loss)		11,612			13,031			16,328			22,244			(1,341	)
Interest expense		(5,543	)		(1,728	)		(9,674	)		(2,783	)		(4,181	)
Income from equity method investment		699			270			1,286			477			48
Income (loss) before income taxes		6,768			11,573			7,940			19,938			(5,474	)
Income tax expense		2,906			—			2,906			—			—
Net income (loss)		3,862			11,573			5,034			19,938			(5,474	)
Less income attributable tonon-controlling interest		642			802			1,009			1,072			54
Net income (loss) attributable to Charah Solutions, Inc.	$	3,220		$	10,771		$	4,025		$	18,866		$	(5,528	)
Basic earnings (losses) per share	$	0.13		$	0.45		$	0.17		$	0.80			N/A
Diluted earnings (losses) per share	$	0.13		$	0.44		$	0.16		$	0.77			N/A
Pro forma net income (loss) information (see Note 1):
Net income (loss) attributable to Charah Solutions, Inc. before provision for income taxes	$	6,126		$	10,771		$	6,931		$	18,866		$	(5,528	)
Pro forma provision for income taxes		1,517			4,093			1,720			7,169			(2,101	)
Pro forma net income (loss) attributable to Charah Solutions, Inc.	$	4,609		$	6,678		$	5,211		$	11,697		$	(3,427	)

CHARAH SOLUTIONS, INC.

Condensed Consolidated & Combined Statements of Cash Flows

(dollars in thousands unless otherwise indicated)

(Unaudited)

	Successor						Predecessor
	Six Months Ended June 30, 2018			Period from January 13, 2017 through June 30, 2017			Period from January 1 2017, through January 12, 2017
Cash flows from operating activities:
Net income (loss)	$	5,034		$	19,938		$	(5,474	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		17,135			12,799			763
Amortization of debt issuance costs		784			305			—
Deferred income tax expense		1,919			—			—
Loss on sale of assets		582			169			123
Income from equity method investment		(1,286	)		(477	)		(48	)
Distributions received from equity investment		938			651			—
Non-cash share-based compensation		1,403			141			—
Payment related to deferred stock plan		—			(18,888	)		—
Gain on interest rate swap		(2,228	)		—			—
Increase (decrease) in cash due to changes in:
Trade accounts receivable		(5,289	)		9,494			(3,977	)
Receivable from affiliates		(82	)		(474	)		—
Costs and estimated earnings in excess of billing		(22,305	)		(6,454	)		2,185
Inventory		(825	)		(390	)		278
Prepaid expenses and other current assets		(2,126	)		(1,604	)		71
Accounts payable		8,587			(7,420	)		4,380
Billings in excess of costs and estimated earnings		(8,783	)		3,007			6
Accrued payroll and bonuses		1,946			(518	)		(318	)
Asset retirement obligation		14			135			—
Accrued expenses		2,396			3,940			(2,407	)
Net cash (used in) provided by operating activities		(2,186	)		14,354			(4,418	)
Cash flows from investing activities:
Proceeds from the sale of equipment		1,102			314			—
Purchases of property and equipment		(8,233	)		(4,438	)		—
Payments for business acquisitions, net of cash received		(19,983	)		—			—
Purchase of intangible assets		(31	)		—			—
Decrease (increase) in restricted cash		—			2,753			—

	Successor						Predecessor
	Six Months Ended June 30, 2018			Period from January 13, 2017 through June 30, 2017			Period from January 1 2017, through January 12, 2017
Net cash used in investing activities		(27,145	)		(1,371	)		—
Cash flows from financing activities:
Net (payments) proceeds on line of credit		—			(43,801	)		4,605
Proceeds from long-term debt		8,400			145,508			298
Principal payments on long-term debt		(45,547	)		(122,299	)		(440	)
Payments of offering costs		(8,622	)		—			—
Proceeds from note payable to related party, net		—			25,230			—
Issuance of common stock		59,241			—			—
Distributions tonon-controlling interest		(721	)		(840	)		—
Distributions to members		(686	)		(15,498	)		—
Net cash provided by (used in) financing activities		12,065			(11,700	)		4,463
Net (decrease) increase in cash		(17,266	)		1,283			45
Cash, beginning of period		32,264			1,046			1,001
Cash, end of period	$	14,998		$	2,329		$	1,046
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$	11,163		$	3,167		$	104

CHARAH SOLUTIONS, INC.

Financial Reconciliation: GAAP toNon-GAAP

(dollars in thousands unless otherwise indicated)

(Unaudited)

	Successor(1)												Predecessor(2)
	Three Months Ended June 30,						Six Months Ended June 30, 2018			Period from January 13, 2017 through June 30, 2017			Period from January 1, 2017 through January 12, 2017
	2018			2017
							(in thousands)
Net income (loss) attributable to Charah Solutions, Inc.	$	3,220		$	10,771		$	4,025		$	18,866		$	(5,528	)
Interest expense		5,543			1,728			9,674			2,783			4,181
Income tax expense		2,906			—			2,906			—			—
Depreciation and amortization		8,704			6,642			17,135			12,799			763
Elimination of certainnon-recurring andnon-operating legal costs(3)		2,489			19			5,169			19			—
Elimination of certainnon-recurring startup costs(4)		688			447			1,480			447			—
Equity-based compensation		1,292			85			1,403			141			—
Transaction related expenses and other items		1,157			212			1,569			276			162
Adjusted EBITDA	$	25,999		$	19,904		$	43,361		$	35,331		$	(422	)
Adjusted EBITDA margin(5)		13.3	%		26.8	%		12.3	%		26.5	%		(4.6	)%

(1) The successor columns represent the combined financial information of Charah and Allied for the period from January 13, 2017 through June 30, 2017 and January 1, 2018 through June 30, 2018 as applicable, as reflected in our financial statements included elsewhere in this Quarterly Report. The predecessor and successor columns together represent our accounting Predecessor for purposes of this Quarterly Report.

(2) The predecessor columns represent the financial information of Charah for the period from January 1, 2017 through January 12, 2017 as reflected in our audited financial statements included elsewhere in this Quarterly Report. The predecessor and successor columns together represent our accounting Predecessor for purposes of this Quarterly Report.

(3) For the three and six months ended June 30, 2018, representsnon-recurring legal expenses associated with the lawsuit filed by APTIM Corp. against Allied in July 2017. As a result, these costs will benon-recurring following the resolution of the APTIM litigation and are not representative of legal costs that we will incur from time to time in the ordinary course of our business.

(4) Representsnon-recurringstart-up costs associated with the startup of Allied and our nuclear services offerings, including the setup of financial operations systems and modules,pre-contract expenses to obtain initial contracts and the hiring of operational staff. Because these costs are associated with the initial setup of the Allied business to initiate the operations involved in our nuclear services offerings, these costs arenon-recurring in the normal course of our business.

(5) Adjusted EBITDA margin is anon-GAAP measure that represents the ratio of Adjusted EBITDA to total revenues. We use Adjusted EBITDA margin to measure the success of our businesses in managing our cost base and improving profitability.