Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q3 2022 Earnings Presentation
18 slides from Sterling Infrastructure's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Earnings Call
We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. Q3 2022 Earnings Call November 1, 2022
Slide 2: Disclosure: Forward-Looking Statements
2Sterling | STRL: Third Quarter 2022 DISCLOSURE: Forward-Looking Statements This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward- looking statements within the meaning of the Securities Act of 1933 and the Securi
Slide 3: WHO is Sterling?
E-Infrastructure Solutions + Highest margins in portfolio + Fastest growing segment in revenue growth + Provide value-added solutions to blue-chip customers in all major East Coast markets + Develop advanced, large-scale site development systems & services for data centers, e-commerce distribution c
Slide 4: Strategic Execution | Proven Results | Strong Growth
Sterling | STRL: Third Quarter 2022 4 Strategic Execution | Proven Results | Strong Growth Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance
Slide 5: The Sterling Way in Action
The Sterling Way in Action(3) + Community engagement and volunteerism is supported at the highest levels of our organization. + Support educational partnerships from K-12 to Higher-Ed + Projects at adult care centers, food banks, community centers + Safety barriers around project sites to protect wo
Slide 6: Third Quarter 2022 Results
+ Third Quarter 2022 Results Sterling | STRL: Third Quarter 2022 6
Slide 7: Third Quarter 2022 Results Highlights
Third Quarter 2022 Results Highlights + Revenues: $556.9 million + Net Income: $29.5 million + EBITDA(4): $60.2 million + Diluted EPS: $0.97 cents Sterling | STRL: Third Quarter 2022 7 (1) Backlog and Cash & Cash Equivalents at September 30, 2022 (2) Combined Backlog includes Unsigned Low-bid Awards
Slide 8: Quarterly Consolidated and Segment Results
Sterling | STRL: Third Quarter 2022 8 Quarterly Consolidated and Segment Results ($ in millions) Q3 2022 Q3 2021 Revenues $ 556.9 $ 463.4 Gross Profit 82.0 57.8 G&A Expense (26.5) (19.6) Intangible Amortization (3.5) (2.9) Acquisition Related Costs (0.3) — Other Operating Expense, Net (4.1) (3.3) Op
Slide 9: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Sterling | STRL: Third Quarter 2022 9 Increased EBITDA and Cash Flow Drives Liquidity Strategy Foward Looking EBITDA Debt Coverage Ratio 2.4 2.1 12/31/21 9/30/22 0 0.5 1 1.5 2 2.5 We expect to pursue strategic uses of our liquidity, such as, strategic acquisitions, investing in capital equipment and
Slide 10: Contact Us
Sterling | STRL: Third Quarter 2022 10 Contact Us Sterling Ron Ballschmiede, Chief Financial Officer Mary Morley, Investor Relations Sterling Infrastructure, Inc. Tel: (281) 214-0777 The Equity Group Inc. Jeremy Hellman Tel: (212) 836-9626 jhellman@equityny.com
Slide 11: Appendix
+ Appendix Sterling | STRL: Third Quarter 2022 11
Slide 12: Strategy Driving Profitable Growth
Sterling | STRL: Third Quarter 2022 12 Strategy Driving Profitable Growth *Combined Backlog includes Unsigned Low-bid Awards of $235 million at September 30, 2022 *See EBITDA Reconciliations in the Appendix pages 15 - 17
Slide 13: 2022 Modeling Considerations
Sterling | STRL: Third Quarter 2022 13 2022 Modeling Considerations(1) (1) In millions except for EPS and percentages. (2) See EBITDA guidance reconciliation on page 16. Revenue $1,900 to $1,920 Gross Margin ~14.0% G&A Expense as % of Revenue ~5.0% Other Operating Expense Net $7 to $9 JV Non-Control
Slide 14: 2022 Modeling Considerations Continued
2022 Modeling Considerations Continued* Sterling | STRL: Third Quarter 2022 14 * In Millions except for percentages Non-Cash Items FY 2022 Expectations FY 2021 Depreciation $35 to $36 $22.7 Intangible Amortization $15 $11.5 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $10 t
Slide 15: EBITDA Reconciliation
Sterling | STRL: Third Quarter 2022 15 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, taxes, and net gain on extinguishment of debt. Three Months Ended September 30, Nine Months Ended S
Slide 16: EBITDA Guidance Reconciliation
Sterling | STRL: Third Quarter 2022 16 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, taxes, and net gain on extinguishment of debt. Full Year 2022 Guidance Low High Net income attribut
Slide 17: Historical EBITDA Reconciliation
Sterling | STRL: Third Quarter 2022 17 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, taxes, and net gain or loss on extinguishment of debt. 2016 2017 2018 2019 2020 2021 Net (loss) inc
Slide 18: Thank You
THANK YOU We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow.
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