Shimmick Corporation · NASDAQ:SHIM
Shimmick — Q4 2023 Earnings Presentation
18 slides from Shimmick's earnings presentation, Mar 28, 2024
Slide 1: Earnings Presentation Fiscal Year and Fourth Quarter 2023
Earnings Presentation Fiscal Year and Fourth Quarter 2023 March 2024 Building a Sustainable and Resilient Water Future
Slide 2: Disclaimer
Disclaimer – This presentation is being delivered on behalf of Shimmick Corporation (the “Company”). The sole purpose of this presentation is to provide information in connection with a review of the Company’s operations and/or financial status. This presentation does not purport to be all-inclusive
Slide 3: Company Overview
Company Overview Water Solutions Leader $1.1B We rank as a top 10 water solutions provider(1). With a dedicated team Backlog of 1,300+ skilled employees(2), we have built a strong team, reputation and competitive position. Vertically Integrated 75%+ We are vertically integrated and often self-perfor
Slide 4: Fiscal Year 2023 Highlights
Fiscal Year 2023 Highlights Shimmick Projects(1) Revenue Growth • Grew Shimmick Project revenue by 24% to $434 million during fiscal year 2023 as compared to fiscal year 2022. Grew Shimmick Projects Gross Margins • Reported $29 million for Shimmick Projects in gross margin in fiscal year 2023, an in
Slide 5: Selected Project Highlights
Selected Project Highlights REGIONAL WATER RECLAMATION FACILITY EXPANSION Wastewater Treatment KEY PROJECT STATISTICS (AS OF JANUARY 2024) Shimmick Solution Status Shimmick will expand this facility’s capacity to meet Shimmick was the sole bidder on this project to wastewater treatment and recycled
Slide 6: Fourth Quarter and Fiscal Year Revenue and Gross Margin Results
Fourth Quarter and Fiscal Year Revenue and Gross Margin Results ($ in millions) SHIMMICK PROJECT REVENUE SHIMMICK PROJECT GROSS MARGIN Observations $434 Shimmick Project revenue $29 $351 $24 growth and gross margin largely offset Legacy Project revenue $121 $104 $9 $3 declines Q4 2022 Q4 2023 FY2022
Slide 7: Shimmick Backlog Growth
Shimmick Backlog Growth Our Backlog is USA-based, Predominantly Publicly-Funded and Fixed-Price Backlog $1,000 Millions End of 2021 End of 2022 End of 2023 $876 Backlog Conversion $900 $800 $731 $744 • More than 75% of the backlog $700 expected to be completed in the $563 next 24 months $600 $471 $5
Slide 8: 2024 Guidance
2024 Guidance ($ in millions) SHIMMICK PROJECT REVENUE SHI MMI C K PROJEC T G RO SS MA RG I N For the full fiscal year ending $464M - $490M 7% – 13% December 27, 2024, we expect: 7% • Shimmick Projects revenue to $434M grow 7 to 13 percent with gross margin between 7 to 13 percent 2023 2024 2023 202
Slide 9: Highlights
Highlights Large Addressable Market Vertical Integration Mitigates Risk Established Customer Base and Focus on California Publicly Funded Backlog Transitioning to a Higher Margin Portfolio Potential Acquisitions to Improve Growth & Margin 9
Slide 10: Investor Contact
Investor Contact IR@shimmick.com 1-949-704-2350 investors.shimmick.com
Slide 11: Appendix
Appendix MAKE IT HAPPEN
Slide 12: Strong Market Tailwinds
Strong Market Tailwinds Supporting Federal Legislation Key Market Drivers Bipartisan Budget / America’s Water Infrastructure Act • Climate Change 2018 Providing for water infrastructure improvements • Water Scarcity • Water Security Infrastructure & Jobs Act 2021 Funding for clean drinking water for
Slide 13: Growth Strategy
Growth Strategy Expanding on our Core Focus with Select Acquisitions Organic Focus Acquisition Focus Strengthen Smart Water, Core Software, Remediation, & O&M • Transitioning to Higher Margin Portfolio • Accretive • Selective Bidding • Higher Margin • Underwriting Risk • Recurring Revenues • Project
Slide 14: Shimmick Water Projects and Solutions
Shimmick Water Projects and Solutions Water Resources & Other Water Treatment & Other Flood Protection Species Protection Water Recycling Water Purification Water Storage Water Conveyance Desalination Water/Wastewater Treatment 14
Slide 15: Select Long-Standing Customer Relationships
Select Long- Standing Orange County City and County of Metropolitan Water District of County of Los Water District San Francisco Southern California Angeles Customer Relationships Orange County Sanitation District Our resume leads to repeat business with significant players across water infrastructu
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) Three Months Ended Fiscal Year Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Net (loss) income attributable to Shimmick Corporation (17,476) (17,916) (2,546) 3,760 Changes in fair value of contingent consideration (185) (
Slide 17: Non-GAAP Financial Measures Explanatory Notes
Non-GAAP Financial Measures Explanatory Notes Adjusted Net (Loss) Income and Adjusted Diluted Earnings Per Common Share Adjusted net (loss) income represents net (loss) income attributable to Shimmick Corporation adjusted to eliminate changes in fair value of contingent consideration, IPO and transa
Slide 18: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet December 29, December 30, (in thousands) 2023 2022 Assets Cash and Cash Equivalents 62,939 77,762 Total Current Assets 257,458 233,476 Total Assets 426,652 446,799 Liabilities Total Current Liabilities 271,253 340,944 Total Liabilities 356,162 395,204 Equity Tota