NorthStar Group Services Inc.

Overview Key strengths Key risks Unique expertise and control of scarce disposal assets in the highly regulated nuclear services industry The bidding environment/availability of nuclear decommissioning projects is uncertain Good backlog of work Projects can take years to complete and disciplined execution is necessary to mitigate cost overruns Favorable tax attributes that can support cash flow generation Financial sponsor ownership (J.F. Lehman&Co.) could result in weaker credit measures Trailing 12-month revenue and adjusted EBITDA as of June 30, 2022, grew by 2% and 6%, from June 30, 2021, as its status as an essential service provider and reallocation of resources helped earnings resilience. The drop in larger response events accounted for the headwind to revenue growth, though NorthStar?s

...NorthStar's operations are holding up relatively well. Trailing 12-month revenue and adjusted EBITDA as of June 30, 2022, grew by 2% and 6%, from June 30, 2021, as its status as an essential service provider and reallocation of resources helped earnings resilience. The drop in larger response events accounted for the headwind to revenue growth, though NorthStar's other segments like Commercial & Industrial, Nuclear Services, and Infrastructure & Energy (coal ash remediation) demonstrated solid organic growth. The project backlog of more than $2 billion remains healthy, up 30% from December 2020, with contributions from large-scale commercial deconstruction opportunities like New York City high-rise buildings. The backlog includes work related to a refinery decommissioning (now roughly 75% complete), demolition jobs at a hotel and detention center in New York City, a 14-year coal ash...

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