Included in this presentation and the accompanying oral presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") designed to supplement, and not substitute, Montrose's financial information presented in accordance with GAAP. The non-GAAP measures as defined by Montrose may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39394 Montrose Environmental Group, Inc. (Exact Name of Registrant as Specified in its Charter) WASHINGTON, DC 20549 | Delaware | 46-4195044 | | --- | ...

Financial Data and Key Metrics Changes - The company's Q2 2023 revenue was $159.1 million, representing a 13.7% increase compared to the prior year quarter, while year-to-date revenues increased by 5.8% to $290.5 million [20][78] - Consolidated adjusted EBITDA for Q2 2023 was $21.2 million, or 13.3% of revenue, compared to $15.6 million, or 11.2% of revenue in the prior year quarter, reflecting a significant year-over-year improvement [105] - Year-to-date cash flow from operating activities was $24.5 million, improving from a cash used in operating activities of $2.9 million in the prior year period [107] Business Segment Performance Changes - In the Assessment Permitting and Response segment, revenues increased by 22.7% year-over-year to $61.4 million, driven primarily by organic growth and acquisitions [106] - The Measurement and Analysis segment saw revenue growth of 18.5% to $50.1 million, attributed to strong organic growth and benefits from acquisitions [80] - The Remediation and Reuse segment's revenues were flat year-over-year at $47.6 million, with the Matrix acquisition offsetting declines in other areas [28] Market Data and Key Metrics Changes - Demand for environmental response services provided by CTEH remained elevated due to several prominent environmental emergencies, contributing to higher revenues [21][74] - The EPA's new rules targeting methane emissions are expected to support incremental demand for emissions measurement and monitoring services [24] - The recent regulations regarding PFAS are anticipated to increase future demand for consulting and testing services [76][102] Company Strategy and Industry Competition - The company is focusing on optimizing adjusted EBITDA margins while maintaining long-term organic growth opportunities [69] - Investments in technology and R&D are expected to enhance the company's competitive position in the environmental services market [70] - The company is pivoting its renewable energy business model to focus on higher-margin opportunities, which may temporarily depress revenue growth in the short term [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the business and the ability to sustainably create shareholder value due to the growing need for differentiated environmental solutions [31] - The company raised its full-year revenue outlook to a range of $590 million to $640 million, up from the previous guidance of $550 million to $600 million [109] - Management noted that while quarterly results are important, the business should be assessed on an annual basis due to the nature of demand for environmental services [72] Other Important Information - The company published its 2022 sustainability report, responding to investor requests for more detailed reporting on sustainability efforts [8] - The acquisition of Matrix is expected to improve margins and create cross-selling opportunities, with a target to increase margins to low- to mid-teens by the end of 2024 [28][118] Q&A Session Summary Question: Expected contribution from Matrix and legacy Montrose - Management indicated that Matrix runs at $75 million to $80 million of revenue annually, with a significant portion of EBITDA expected to contribute to updated guidance [33] Question: Comments on PFAS project timing shifts - Management clarified that project timelines have shifted due to client assessments of new regulations, impacting the execution of projects [125] Question: Outlook for the ECT2 business - Management expects the ECT2 business to be flat for the year, with a long-term bullish outlook despite short-term revenue declines [115] Question: SG&A expectations moving forward - Management expects SG&A to remain at or below 6% for the full year, with modest increases anticipated in the future [54] Question: Revenue synergies from Matrix acquisition - Management highlighted that the Matrix acquisition is expected to drive revenue synergies through cross-utilization of staff and expertise [152]

Safe Harbor Included in this presentation and the accompanying oral presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") designed to supplement, and not substitute, Montrose's financial information presented in accordance with GAAP. The non-GAAP measures as defined by Montrose may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $131.4 million, a decrease from $134.7 million in the prior year quarter, primarily due to lower demand for COVID-19-related services and project timing in the remediation and reuse segment [16][17] - Consolidated adjusted EBITDA was $16.6 million, representing 12.6% of revenue, an increase of 15.2% from $14.4 million in the prior year, with adjusted EBITDA margins improving from 11.2% to 12.8% [17][22] - The company raised its full-year 2023 EBITDA outlook to a range of $70 million to $76 million, up from the previous range of $68 million to $74 million, indicating low double-digit growth and margin expansion [22] Business Segment Performance - In the Assessment Permitting and Response segment, revenue increased 14.5% year-over-year to $52.2 million, driven by organic growth and acquisitions, with adjusted EBITDA increasing 48.2% to $14.3 million, reflecting a margin of 27.3% [39] - The Measurement and Analysis segment saw a revenue increase of 7% to $42.5 million, primarily due to strong organic growth, with adjusted EBITDA margin rising to 15.6% from 13.7% in the prior year [40] - The Remediation and Reuse segment experienced a revenue decline to $36.7 million from $49.3 million in the prior year quarter, attributed to the winding down of high-value projects, although this was partially offset by revenues from acquisitions [1][6] Market Data and Key Metrics Changes - The U.S. EPA's focus on PFAS and methane emissions is expected to drive demand for the company's services, particularly in environmental consulting and testing [8][9][10] - The company is well-positioned to assist clients in navigating the evolving regulatory landscape, which is expected to enhance demand for its services [11] Company Strategy and Industry Competition - The company is focusing on acquisitions to enhance its service offerings, with a reduced cadence last year due to strong organic growth, but expects to capitalize on its M&A pipeline this year [2] - Investments in R&D are anticipated to yield significant returns, particularly in greenhouse gas measurement, PFAS remediation, and renewable energy sectors [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to solve environmental challenges and create value for shareholders, citing strong cash flow and a robust balance sheet [3][13] - The company remains insulated from political and economic swings, with a strong outlook for organic growth across its service lines despite anticipated moderation in certain segments [3][32] Other Important Information - The company’s leverage ratio as of March 31, 2023, was 1.4x, with minimal exposure to rising interest rates due to cash reserves and interest rate swaps [41] - The Series A2 preferred stock has no maturity date, providing flexibility in capital structure [21] Q&A Session Summary Question: Can you provide details on the Matrix Solutions acquisition? - The acquisition is in the process of shareholder vote and is expected to close in the second quarter, but it will not materially impact the overall profile as CTEH did [46][47] Question: What is the market opportunity in Canada? - The company sees significant opportunities in Canada due to favorable environmental policies and expects strong client-based opportunities across both Canada and the U.S. [48][62] Question: How durable are the margins in the Assessment and Permitting segment? - The margins are expected to be durable, with a run rate of $75 million to $95 million in revenue and approximately 25% EBITDA margins [51] Question: Should we expect growth in the remediation and reuse revenue for the full year? - The company anticipates flat growth for 2023 compared to 2022, with a strong outlook for 2024 to 2025 [54][55] Question: Is there any sensitivity around CapEx projects in the assessment and permitting area? - The company is not significantly exposed to discretionary spending and remains confident in its fundamental work despite broader economic uncertainties [69]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for Q1 2023, covering financial position, operations, and cash flows, with detailed notes Condensed Consolidated Statements of Operations (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (In thousands) | Q1 2022 (In thousands) | | :--- | :--- | :--- | | **Revenues** | $131,428 | $134,680 | | **Loss from Operations** | $(9,975) | $(7,636) | | **Net Loss** | $(14,719) | $(7,536) | | **Net Loss Attributable to Common Stockholders** | $(18,819) | $(11,636) | | **Net Loss Per Share (Basic and Diluted)** | $(0.63) | $(0.39) | Condensed Consolidated Statements of Financial Position (As of March 31, 2023) | Metric | March 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $231,007 | $247,928 | | **Total Assets** | $783,177 | $791,914 | | **Total Current Liabilities** | $102,331 | $111,442 | | **Total Liabilities** | $320,144 | $325,799 | | **Total Stockholders' Equity** | $310,105 | $313,187 | Condensed Consolidated Statements of Cash Flows (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (In thousands) | Q1 2022 (In thousands) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $3,029 | $(18,328) | | **Net cash used in investing activities** | $(11,727) | $(15,005) | | **Net cash used in financing activities** | $(4,654) | $(19,715) | | **Change in Cash and Cash Equivalents** | $(13,352) | $(53,048) | [Note 1: Business Description and Basis of Presentation](index=7&type=section&id=1.%20DESCRIPTION%20OF%20THE%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) Montrose Environmental Group, Inc. operates through three segments: Assessment, Measurement, and Remediation, serving diverse clients - The company operates through three primary segments: **Assessment, Permitting and Response** (consulting and emergency response), **Measurement and Analysis** (testing of air, water, soil), and **Remediation and Reuse** (engineering and implementation of treatment solutions)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Note 3: Revenues and Accounts Receivable](index=9&type=section&id=3.%20REVENUES%20AND%20ACCOUNTS%20RECEIVABLE) Details revenue streams, contract assets and liabilities, and remaining unsatisfied performance obligations, totaling approximately **$98.2 million** as of March 31, 2023 - As of March 31, 2023, the company had approximately **$98.2 million** in remaining unsatisfied performance obligations, with **$79.1 million** expected to be recognized as revenue within a year[30](index=30&type=chunk) Contract Balances | Balance | March 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | Contract assets | $53,563 | $52,403 | | Contract liabilities | $10,932 | $18,549 | [Note 7: Business Acquisitions](index=14&type=section&id=7.%20BUSINESS%20ACQUISITIONS) Details strategic acquisitions in Q1 2023, including Frontier Analytical Laboratories and EAI for **$6.2 million**, and outlines potential future earn-out payments - In Q1 2023, the company acquired Frontier Analytical Laboratories and Environmental Alliance, Inc. (EAI) for a total purchase price of **$6.2 million**, funded through cash on hand[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The company may be required to make up to **$9.5 million** in aggregate earn-out payments between 2023 and 2026 related to various business acquisitions[50](index=50&type=chunk) - Transaction costs related to business combinations totaled **$0.8 million** for the three months ended March 31, 2023[51](index=51&type=chunk) [Note 12: Debt](index=19&type=section&id=12.%20DEBT) Details total debt of **$162.5 million** as of March 31, 2023, primarily from the 2021 Credit Facility, with a **1.4x** leverage ratio and covenant compliance Debt Composition (As of March 31, 2023) | Component | Amount (In thousands) | | :--- | :--- | | Term loan facility | $164,062 | | Less deferred debt issuance costs | $(1,595) | | **Total debt** | **$162,467** | - The weighted average interest rate on the 2021 Credit Facility was **6.1%** for Q1 2023, up from **1.8%** in Q1 2022[86](index=86&type=chunk) - As of March 31, 2023, the company's consolidated total leverage ratio was **1.4 times**, and it was in compliance with all covenants under the 2021 Credit Facility[84](index=84&type=chunk) [Note 15: Convertible and Redeemable Series A-2 Preferred Stock](index=25&type=section&id=15.%20CONVERTIBLE%20AND%20REDEEMABLE%20SERIES%20A-2%20PREFERRED%20STOCK) Details 17,500 shares of Series A-2 Preferred Stock with a **9.0%** dividend rate, **$4.1 million** paid in Q1 2023, convertible from April 2024 - The company paid dividends of **$4.1 million** on its Series A-2 Preferred Stock during the three months ended March 31, 2023[100](index=100&type=chunk) - The preferred stock becomes convertible into common stock starting on the fourth anniversary of issuance at a **15.0%** discount to the market price, with certain volume limitations[101](index=101&type=chunk) [Note 18: Segment Information](index=32&type=section&id=18.%20SEGMENT%20INFORMATION) Provides a breakdown of revenues and Segment Adjusted EBITDA for the three reportable segments, with total operating segment revenue of **$131.4 million** in Q1 2023 Segment Revenues and Adjusted EBITDA (Q1 2023 vs Q1 2022) | Segment | Q1 2023 Revenues (thousands) | Q1 2023 Adj. EBITDA (thousands) | Q1 2022 Revenues (thousands) | Q1 2022 Adj. EBITDA (thousands) | | :--- | :--- | :--- | :--- | :--- | | Assessment, Permitting and Response | $52,214 | $14,266 | $45,600 | $9,623 | | Measurement and Analysis | $42,527 | $6,387 | $39,761 | $6,322 | | Remediation and Reuse | $36,687 | $5,278 | $49,319 | $7,993 | | **Total Operating Segments** | **$131,428** | **$25,931** | **$134,680** | **$23,938** | - During Q1 2023, the company decided to sell a non-core specialty service line within its Measurement and Analysis segment, referred to as the 'Discontinuing Specialty Lab'[130](index=130&type=chunk) [Note 21: Subsequent Events](index=34&type=section&id=21.%20SUBSEQUENT%20EVENTS) Details post-quarter acquisitions, including GreenPath Energy LTD for **CAD $20.1 million** and an agreement to acquire Matrix Solutions, Inc. for **CAD $65.2 million** - On May 1, 2023, the company acquired GreenPath Energy LTD, a fugitive emissions management firm, for **CAD $20.1 million**[136](index=136&type=chunk)[138](index=138&type=chunk) - The company signed an agreement to acquire Matrix Solutions, Inc., an environmental and engineering consulting company, for **CAD $65.2 million**, with the deal expected to close in Q2 2023[137](index=137&type=chunk)[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, noting a **2.4%** revenue decrease to **$131.4 million** and an increased net loss to **$14.7 million**, influenced by service changes and higher expenses - Revenues for Q1 2023 decreased by **2.4%** to **$131.4 million** from **$134.7 million** in Q1 2022, primarily due to significantly lower revenue from COVID-19 services (**$3.8 million** in Q1'23 vs **$21.4 million** in Q1'22) and project timing in the Remediation and Reuse segment[172](index=172&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **18.7%** to **$49.6 million**, driven by a shift of certain employee roles from direct cost to overhead, higher labor costs, and increased stock compensation[181](index=181&type=chunk) - The company defines organic growth as the change in revenues excluding revenues from CTEH, acquisitions for the first twelve months, and businesses held for sale or discontinued[158](index=158&type=chunk) - Net cash provided by operating activities was **$3.0 million** in Q1 2023, a significant improvement from the **$18.3 million** used in Q1 2022, which included a **$19.5 million** contingent consideration payment[207](index=207&type=chunk) Segment Revenue Performance (Q1 2023 vs Q1 2022) | Segment | Q1 2023 Revenue (millions) | Q1 2022 Revenue (millions) | Change (%) | | :--- | :--- | :--- | :--- | | Assessment, Permitting and Response | $52.2 | $45.6 | +14.5% | | Measurement and Analysis | $42.5 | $39.8 | +7.0% | | Remediation and Reuse | $36.7 | $49.3 | -25.6% | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risks from interest rate fluctuations and inflation, noting a **1.0%** interest rate change impacts pre-tax income by **$0.6 million** annually - A **1.0%** increase or decrease in interest rates on the company's variable rate debt would impact annual income before taxes by approximately **$0.6 million**[222](index=222&type=chunk) - The company has experienced higher labor, travel, and other direct costs due to inflation but has been raising prices on contracts to offset these effects Management does not believe inflation will have a material long-term effect on the business[223](index=223&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[224](index=224&type=chunk) - No changes occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[225](index=225&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any litigation expected to have a material adverse effect on its operations or financial position - The company states it is not party to any litigation that would be reasonably expected to have a material adverse effect on its financial results[229](index=229&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the company's risk factors from those disclosed in its 2022 Annual Report on Form 10-K - No material changes have occurred to the risk factors previously disclosed in the 2022 Form 10-K[230](index=230&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[231](index=231&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39394 Montrose Environmental Group, Inc. (Exact name of Registrant as specified in its Charter) Delaware 46-4195044 (State or other j ...

Financial Data and Key Metrics Changes - The company reported total revenues of $139.5 million for Q4 2022, a decrease from $143.8 million in the prior year quarter, primarily due to significantly lower CTEH revenue, partially offset by organic growth in other segments [25] - Full year consolidated adjusted EBITDA was $66.2 million, or 12.2% of revenue, compared to $73.2 million, or 13.4% of revenue in the prior year, driven by a decline in CTEH earnings and higher variable costs [26] - The company achieved record organic revenue growth of 26% in its core business for 2022, with average organic growth over the past three years at approximately 18% [14][15] Business Line Data and Key Metrics Changes - In the Remediation and Reuse segment, revenues increased year-over-year to $184.8 million, driven by strong demand for PFAS water treatment technology and biogas services [47] - The Measurement & Analysis segment saw revenue increase by 12.5% to $172.4 million, attributed to strong organic growth and acquisitions, although adjusted EBITDA as a percentage of revenue decreased to 18.3% due to business mix and a cyber attack impact [38] - The Assessment, Permitting and Response segment experienced a decrease in full year revenue and adjusted EBITDA to $187.2 million and $37.5 million, respectively, primarily due to the decline in CTEH COVID-19 revenues [37] Market Data and Key Metrics Changes - The U.S. EPA's focus on PFAS and methane emissions is expected to drive demand for the company's consulting and testing services, with new regulations anticipated to increase market opportunities [29][30][32] - The company is well-positioned to capitalize on government policy initiatives aimed at improving environmental stewardship, which are expected to create tailwinds for its services [29][33] Company Strategy and Development Direction - The company plans to continue its focus on organic growth, with expectations for double-digit organic revenue growth in 2023, while also resuming a regular cadence of M&A activity [28][52] - The long-term strategy remains unchanged, emphasizing the ability to create shareholder value through innovation and strong demand for environmental solutions [28][60] - The company aims to deepen existing customer relationships rather than focusing solely on customer acquisition, with cross-selling revenues nearly doubling to 35% of total revenues [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to achieve substantial value creation in 2023, driven by strong demand for environmental solutions and a robust pipeline of prospective acquisitions [60][111] - The company acknowledged challenges in predicting the timing of project starts and the impact of recent acquisitions on short-term margins, but remains confident in long-term margin targets [70][77] - Management highlighted the importance of regulatory momentum and market drivers in shaping future growth opportunities [29][32] Other Important Information - The company reported a strong balance sheet with cash on hand of $89.8 million and an additional $125 million available on its revolving credit facility, providing flexibility for future investments [49][50] - The company has filed for 14 patents and is actively working on innovations related to PFAS destruction and carbon dioxide capture, indicating a commitment to long-term environmental opportunities [56] Q&A Session Summary Question: Insights on greenhouse gas monitoring and renewables for 2023 - Management noted a material uptick in demand for greenhouse gas measurement services, which is expected to contribute to organic growth in the Measurement and Analysis segment [64] Question: Potential for increasing cross-selling revenues - Management indicated that there is significant potential for cross-selling to exceed 50% of revenues as the focus remains on deepening customer relationships [67] Question: Factors affecting EBITDA margin guidance for 2023 - Management explained that while long-term margin targets remain unchanged, short-term challenges include the impact of acquisitions and R&D investments on margins [70][77] Question: Factors driving revenue guidance for 2023 excluding CTEH - Management highlighted the importance of the greenhouse gas measurement practice and regulatory developments in determining revenue performance [89] Question: Synergies between Montrose and CTEH outside of COVID-related work - Management emphasized the synergistic relationship between Montrose and CTEH, particularly in responding to environmental incidents and providing downstream services [99]

Financial Data and Key Metrics Changes - Third quarter revenues were $130.3 million, a decrease from $132.6 million in the prior year quarter, primarily due to lower COVID-19 revenue from CTEH, which dropped by $31.1 million [27] - Year-to-date revenues increased by 0.6% to $404.9 million, driven by organic growth in Measurement and Analysis and Remediation and Reuse segments, along with positive contributions from acquisitions [28] - Consolidated adjusted EBITDA for the third quarter was $17.1 million, or 13.1% of revenue, compared to $20.3 million, or 15.3% of revenue in the prior year quarter [29] Business Line Data and Key Metrics Changes - In the Assessment, Permitting and Response segment, revenue decreased to $46.4 million, with adjusted EBITDA at $9.8 million, impacted by lower COVID-19-related services from CTEH [31] - The Measurement and Analysis segment saw a revenue increase of 12.9% to $43.8 million, primarily due to organic growth and acquisitions [33] - The Remediation and Reuse segment experienced a 32% year-over-year revenue increase to $40.1 million, driven by demand for PFAS Water Treatment services [34] Market Data and Key Metrics Changes - The company noted strong demand across most service lines, particularly in PFAS Water Treatment, greenhouse gas measurement, and renewable energy [10] - Regulatory momentum, including EPA proposals regarding PFAS and methane emissions, is expected to create tailwinds across the company's segments [15][16] Company Strategy and Development Direction - The company continues to consolidate its fragmented industry, completing four acquisitions in 2022, with a focus on supporting organic revenue growth [12] - The strategy includes enhancing capabilities in environmental consulting and testing services, with expectations for an acceleration in acquisition cadence in 2023 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the annual outlook, emphasizing that the business should be evaluated on an annual basis due to the nature of project timing [30] - The company anticipates full-year 2022 revenue in the range of $535 million to $555 million, narrowing from previous guidance [42] Other Important Information - The company reported strong cash flow from operations of $8.2 million year-to-date, with a liquidity position of $93.6 million in cash and $125 million available on its revolving credit facility [39] - The leverage ratio as of September 30, 2022, was at 1.2x, indicating a strong balance sheet [40] Q&A Session Summary Question: Was third quarter revenue in line with internal expectations? - Management confirmed that the third quarter revenue was in line with internal expectations, despite being below consensus [49][50] Question: What is expected for EBITDA margins in the fourth quarter? - Management indicated expectations for sequential margin improvement due to successful pricing initiatives and recovery from earlier disruptions [53] Question: What system challenges has the company faced as it grows? - Management highlighted the implementation of a new ERP system to handle increased complexity and project-oriented work, which has been operating well [55][56] Question: How does labor availability and wage inflation impact pricing? - Management acknowledged tight labor market conditions but expressed confidence in their ability to manage labor costs through disciplined pricing strategies [60][65] Question: Have there been any project delays due to the current environment? - Management reported no significant project delays, noting that natural scheduling variances occur but overall demand remains strong [67] Question: What is the growth trajectory for PFAS and biogas services? - Management indicated strong growth in PFAS Water Treatment and biogas services, with expectations for continued demand driven by regulatory changes [76][78]

Montrose Environmental Group, Inc. (NYSE:MEG) Q2 2022 Results Earnings Conference Call August 9, 2022 8:30 AM ET Company Participants Rodny Nacier - Investor Relations Vijay Manthripragada - President and Chief Executive Officer Allan Dicks - Chief Financial Officer Conference Call Participants Tim Mulrooney - William Blair Sabrina Abrams - Bank of America Merrill Lynch Jim Ricchiuti - Needham & Company Operator Ladies and gentlemen, greetings and welcome to the Montrose Environmental Group, Inc. Second Qua ...