Infrastructure and Energy Alternatives Inc

Infrastructure and Energy Alternatives — Q4 2021 Earnings Presentation

24 slides from Infrastructure and Energy Alternatives's earnings presentation, Mar 7, 2022

  1. Slide 1: Investor Presentation March 2022

    © 2022. IEA. All Rights Reserved. INVESTOR PRESENTATION MARCH 2022

  2. Slide 2: Forward-looking statements

    © 2022. IEA. All Rights Reserved. 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking st

  3. Slide 3: A Market Leader in the Renewable Energy Transition

    3© 2022. IEA. All Rights Reserved. A MARKET LEADER IN THE RENEWABLE ENERGY TRANSITION Atlas Clean Energy Index Select ESG Index Memberships Infrastructure and Energy Alternatives (“IEA”) is a leading provider of renewable energy services and transportation construction solutions in the United States

  4. Slide 4: Leadership Positions: Expanding Leadership in Key Renewable Markets

    4© 2022. IEA. All Rights Reserved. LEADERSHIP POSITIONS EXPANDING LEADERSHIP IN KEY RENEWABLE MARKETS IEA ranks on the 2021 Engineering News-Record Top 400 Contractors and Sourcebook List #2 WIND #8 SOLAR #4 POWER #17 RAIL #5 MINING #18 HIGHWAYS #39 TRANSPORTATION #48 TOP 400

  5. Slide 5: Renewable Energy Development: How IEA Adds Value to the Process

    5© 2022. IEA. All Rights Reserved. RENEWABLE ENERGY DEVELOPMENT HOW IEA ADDS VALUE TO THE PROCESS Customers Renewable EPC Construction Services Illustrative EPC Services Engineering Procurement / Construction • Geotechnical • Preliminary & Detail • Engineering Management • Surveying & Permitting • E

  6. Slide 6: Constructed over 24.4 GW of wind and solar projects

    6© 2022. IEA. All Rights Reserved. Constructed over 24.4 GW of wind and solar projects that annually offset 7.3 MILLION HOMES POWERED ANNUALLY 7.1 MILLION VEHICLE EMISSIONS CUT ANNUALLY CO2 – 32.8 million MT | NOx – 17.9 MT | SO2 – 19.5 MT | PM2.5 – 2.2 MT 1) Homes powered per year based on the GW i

  7. Slide 7: Reporting Segments: IEA Segment Profiles

    7© 2022. IEA. All Rights Reserved. REPORTING SEGMENTS IEA SEGMENT PROFILES RENEWABLES SPECIALTY CIVIL Wind Solar Power Delivery YTD Financial Performance (Q4-2021) $1.46 Total Revenue billion $141.7 Gross Margin $ million Target Gross Margin 10-12% 10%Gross Margin % Heavy Civil Rail Environmental YT

  8. Slide 8: Focused Renewable Exposure

    © 2022. IEA. All Rights Reserved. 8 Focused Renewable Exposure 70% of IEA’s business comes directly from Wind and Solar construction and services. LTM Revenue from renewables totals nearly $1.46 billion. Renewables Cost Less than Traditional Power Sources Renewables are the lowest cost form of new g

  9. Slide 9: U.S. electricity generation from selected fuels

    9© 2022. IEA. All Rights Reserved. U.S. electricity generation from selected fuels AEO 2021 reference case Billion kilowatthours 0 1,000 2,000 3,000 4,000 5,000 6,000 2010 2020 2030 2040 2050 2020 history projections natural gas renewables nuclear coal 40% 21% 19% 19% 36% 42% 11% 11% Source: US Ener

  10. Slide 10: Renewables Outlook: Continued Growth in Renewables Pipeline

    10© 2022. IEA. All Rights Reserved. RENEWABLES OUTLOOK CONTINUED GROWTH IN RENEWABLES PIPELINE ACP Clean Power Quarterly - Q4 2021 Highlights • For the full year 2021 the U.S. clean energy industry installed 27.7 GW of utility-scale clean power capacity (down 3% from 2020). • At the end of 2021, the

  11. Slide 11: Civil Outlook: Once-in-a-Generation Investment in Infrastructure

    11© 2022. IEA. All Rights Reserved. CIVIL OUTLOOK “ONCE-IN-A-GENERATION” INVESTMENT IN INFRASTRUCTURE (1) ARTBA “Market Forecast 2021” 2021 (2) United States Environmental Protection Agency Fiscal Year 2020 Justification of Appropriation - Estimates for the Committee on Appropriations (3) Whitehouse

  12. Slide 12: Civil Outlook: Largest Increase in Funding Since 1956

    12© 2022. IEA. All Rights Reserved. CIVIL OUTLOOK LARGEST INCREASE IN FUNDING SINCE THE FEDERAL- AID HIGHWAY ACT OF 1956 (1) Source: ARTBA “$1 Trillion Infrastructure Bill Passes House, Heads to President for Enactment” Nov 5 2021 Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Ac

  13. Slide 13: Coal Ash Remediation Outlook

    13© 2022. IEA. All Rights Reserved. COAL ASH REMEDIATION OUTLOOK LARGE OPPORTUNITY WITH LONG-TERM CONTRACTS There are more than 1,000 coal ash impoundments and surface landfills (1) that require EPA-Mandated closure or remediation Coal ash remediation opportunity could be as much as $50 billion to $

  14. Slide 14: Q4 2021 Financial Performance

    © 2022. IEA. All Rights Reserved. 14 Q4 2021 FINANCIAL PERFORMANCE

  15. Slide 15: Business Highlights – Q4 2021 Record Financial Performance

    © 2022. IEA. All Rights Reserved. 15 Record Revenue A record for fourth quarter with quarterly total revenue of $544 million - 39% higher than Q4 2020 Strong Adjusted EBITDA Adjusted EBITDA of $46 million(1) , up nearly 60% year-over-year Continued Strength in 2022 2022 forecasted to be another reco

  16. Slide 16: Strong Backlog – Q4 2021 Excellent Visibility into 2022

    © 2022. IEA. All Rights Reserved. 16 STRONG BACKLOG –Q4 2021 EXCELLENT VISIBILITY INTO 2022 Next Twelve-Month Backlog ($mm) Total Backlog ($mm) ▪ Strong backlog in Q4-2021 of $2.9 billion • YoY increase of $0.8 billion (or +41%) ▪ Renewables Segment backlog of $2,035 million • YoY increase of $521 m

  17. Slide 17: Revenues, Adjusted EBITDA, SG&A and Gross Margin

    © 2022. IEA. All Rights Reserved. 17 SG&A Expense ($mm) Revenues ($mm) Adjusted EBITDA ($mm)(1) $29 $46 4Q20 4Q21 $26 $32 4Q20 4Q21 Key Themes ▪ Record fourth quarter revenue of $544 million • Strong finish to the year with revenues at high end of expected range ▪ Solid backlog of $2.9 billion provi

  18. Slide 18: Segment Results – Q4 2021

    © 2022. IEA. All Rights Reserved. 18 Key Takeaways ▪ Wind revenues up strongly YoY ($266 million vs $206 million the same period last year) ▪ Solar revenues nearly double YoY ($73 million vs $37 million the same period last year) • Faster growing renewable business going forward ▪ Gross Margin % dow

  19. Slide 19: Capital Structure Key Figures Post Refinancing

    © 2022. IEA. All Rights Reserved. 19 CAPITAL STRUCTURE KEY FIGURES POST REFINANCING • IEA successfully restructured our capital structure in Q3 2021 • Key activities included: • Equity Offering • Series A Preferred Conversion • Series B Preferred Payoff • High Yield Offering • Expanded Revolver • To

  20. Slide 20: 2022 Guidance as of March 7, 2022

    © 2022. IEA. All Rights Reserved. 20 2022 GUIDANCE AS OF MARCH 7, 2022 ($ in Millions) Low High Revenue $2,000 $2,100 Net Income 45.0 51.0 Interest Expense, Net 25.0 26.0 Depreciation & Amortization 47.0 48.0 Expense for Income Taxes 18.0 19.0 EBITDA $135.0 $144.0 Non-Cash Stock Compensation Expense

  21. Slide 21: Appendix

    © 2022. IEA. All Rights Reserved. 21 APPENDIX

  22. Slide 22: Adjusted EBITDA Reconciliation

    © 2022. IEA. All Rights Reserved. 22 Quarter Ended 12-31-2021 Quarter Ended 12-31-2020 Year Ended 12-31-2021 Year Ended 12-31-2020 Net income (loss) $ 31,655 $ (1,392) $ (83,729) $ 728 Interest expense 6,441 14,449 44,698 61,689 Provision (benefit) for income taxes 7,176 2,555 11,198 12,580 Deprecia

  23. Slide 23: Share Reconciliation and Warrant Repurchase Update

    © 2022. IEA. All Rights Reserved. 23 Common shares in thousands Year Ended 12-31-2021 Shares outstanding 48,027 Prefunded warrants 4,327 Employee performance awards and others 2,304 Potential shares 54,658 SPAC warrants 3,827 Anti dilution warrants 1,165 After SPAC warrants exercise 59,650 SHARE REC

  24. Slide 24: Thank You – IR Contact

    © 2022. IEA. All Rights Reserved. 24 THANK YOU I R C O N T A C T Aaron Reddington CFA VP of Investor Relations investors@iea.net 765.828.2653

Infrastructure and Energy Alternatives — Q4 2021 Earnings Presentation on 6ix