Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q4 2022 Earnings Presentation
16 slides from Sterling Infrastructure's earnings presentation, Feb 28, 2023
Slide 1: Q4 2022 Earnings Call
Q4 2022 Earnings Call February 28, 2023 We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow.
Slide 2: DISCLOSURE: Forward-Looking Statements
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 Securities Exchange Act of 1934. These forw
Slide 3: WHO is Sterling?
WHO is Sterling? A market-leading infrastructure service provider of e-infrastructure, building and transportation solutions. A story of successful execution of multi-year strategic business transformation; born of a vision that levers our entrepreneurial spirit. We offer a customer-centric, market-
Slide 4: Strategic Execution | Proven Results | Strong Growth
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 Sterling | STRL: Fourth Quarter 2022 4
Slide 5: Fourth Quarter and Full Year 2022 Results
+ Fourth Quarter and Full Year 2022 Results Sterling | STRL: Fourth Quarter 2022 5
Slide 6: Fourth Quarter and Full Year 2022 Results Highlights
Fourth Quarter and Full Year 2022 Results Highlights Continuing Operations + Revenues: $448.6 million and $1.77 billion, respectively + Net Income: $20.2 million and $96.7 million, respectively + Diluted EPS: $0.66 and $3.16, respectively + EBITDA(1): $49.9 million and $208.7 million, respectively +
Slide 7: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results Continuing Operations ($ in millions) Q4 2022 Q4 2021 ($ in millions) Q4 2022 Q4 2021 Revenues $ 448.6 $ 355.4 E-Infrastructure Solutions Gross Profit 69.0 52.5 Revenue $ 247.3 $ 127.2 G&A Expense (23.1) (23.0) Operating Income $ 29.8 $ 18.7 Intangible Amor
Slide 8: Full Year Consolidated and Segment Results
Full Year Consolidated and Segment Results Continuing Operations ($ in millions) 2022 2021 ($ in millions) 2022 2021 Revenues $ 1,769.4 $ 1,414.4 E-Infrastructure Solutions Gross Profit 274.6 203.5 Revenue $ 905.3 $ 468.8 G&A Expense (86.5) (69.2) Operating Income $ 121.5 $ 80.5 Intangible Amortizat
Slide 9: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Increased EBITDA and Cash Flow Drives Liquidity Strategy Sterling is comfortable with a forward looking debt/ Foward Looking EBITDA Debt EBITDA coverage ratio of +/-2.5X. Coverage Ratio 2.5 2 2.3 5-Year Credit Facility 1.9 $424M Term Loan Borrowings 1.5 $75M Revolving Credit Facility (Undrawn) 1 0.5
Slide 10: Contact Us
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 Sterling | STRL: Fourth Quarter 2022 10
Slide 11: Appendix
+ Appendix Sterling | STRL: Fourth Quarter 2022 11
Slide 12: 2023 Modeling Considerations
(1) 2023 Modeling Considerations Revenue $1,900 to $2,000 Gross Margin 15% to 16% G&A Expense as % of Revenue ~5.0% Other Operating Expense Net $12 to $13 JV Non-Controlling Interest Expense $2 to $3 Effective Income Tax Rate 28% to 29% Net Income $104 to $110 Diluted EPS $3.33 to $3.53 Expected Dil
Slide 13: 2023 Modeling Considerations Continued
2023 Modeling Considerations Continued* Non-Cash Items FY 2023 Expectations FY 2022 Depreciation $40 to $44 $38.0 Intangible Amortization $15 $14.1 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $12 to $14 $10.3 Deferred Taxes $17 to $18 $36.5 Other Cash Flow Items FY 2023 Ex
Slide 14: EBITDA From Continuing Operations Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA FROM CONTINUING OPERATIONS RECONCILIATION (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Net income from Continuing Operations $ 20,233 $ 11,270 $ 96,717 $ 61,457 Depreciation and amo
Slide 15: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2023 Guidance Low High Net income attributable to Sterling common stockholders $ 104 $ 110 Depreciation and amortization 55 59 Interest expense, net of interest income 21 24 Income tax exp
Slide 16: 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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