Southland Holdings, Inc. · AMEX:SLND
Southland — SPAC Merger (May 2022)
31 slides from Southland's SPAC merger presentation, May 25, 2022
Slide 1: Southland Holdings Investor Presentation May 2022
SOUTHLAND HOLDINGS INVESTOR PRESENTATION MAY 2022
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES This Presentation (together with oral statements made in connection herewith, the "Presentation") is for informational purpos es only to assist prospective investors in making their own evaluation with respect to the proposed business combination (the "Proposed Transaction ") b
Slide 3: Non-GAAP Financial Measures
Non - GAAP Financial Measures This Presentation includes certain unaudited financial measures not presented in accordance with generally accepted accountin g p rinciples, including but not limited to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and certain ratios and ot
Slide 4: Forward-Looking Statements
Forward - Looking Statements This Presentation includes certain statements that are not historical facts but are forward - looking statements for purposes of t he safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward - looking statements generally a
Slide 5: Speakers
SOUTHLAND Frank Renda Chief Executive Officer SOUTHLAND Cody Gallarda Chief Financial Officer LEGATO II Gregory Monahan Chief Executive Officer LEGATO II Brian Pratt Chairman SPEAKERS 5 BUILDING GREAT THINGS
Slide 6: Transaction Summary
TRANSACTION SUMMARY
Slide 7: Transaction summary: Southland and Legato II
Southland Holdings, LLC (“Southland”) is a leading provider of specialized infrastructure construction services across North America including bridges, tunneling, transportation and facilities, marine, steel structures, water and sewer treatment, and water pipelines Legato Merger Corp II (Nasdaq: LG
Slide 8: Southland investment highlights
Leading provider of specialized infrastructure construction services across North America including bridges, tunneling, transportation and facilities, marine, steel structures, water and sewer treatment, and water pipelines Customers include federal, state, local and private organizations. A signifi
Slide 9: Estimated sources & uses and pro forma ownership
( 1) Cash in Trust and Pro Forma Ownership reflects 27.6m Public Shares issued during Legato II’s IPO. Assumes no redemptions. (2) Transaction structure inclusive of full earn - out consideration based on the 202 2 Bonus Adjusted EBITDA target of $ 145 mm & 2023 Bonus Adjusted EBITDA target of 165mm
Slide 10: Earnout structure
Size (Shares) Structure Rationale 2022 Earnings Based Incentive 3.45 mm Receive if 202 2 Adjusted EBITDA is $ 125 million or above (2022 “Base” Earnout) ▪ Compensates Southland shareholders for delivering upon stated earnings targets in 202 2 & 2023 ▪ “Bonus” Earnouts provide Southland shareholders
Slide 11: 2022E valuation: EV / EBITDA vs peers
Source: Company filings, S&P Capital IQ. Note: Market data as of May 23, 2022. Estimates based on consensus estimates. Refer to page 9 for additional details on transaction structure. (1) Assumes $145 million of EBITDA or above while TEV includes 6.9mm “Base” (2022 and 2023) and 3.4mm “Bonus” (2022
Slide 12: 2023E valuation: EV / EBITDA vs peers
4.9x 5.3x 11.5x 12.1x 10.2x 7.1x 7.3x 5.7x 4.8x 6.1x 5.2x 3.9x Southland (1) Southland (2) PWR ACM ROAD DY MTZ FLR GVA PRIM STRL TPC 2023 EV / EBITDA Source: Company filings, S&P Capital IQ. Note: Market data as of May 23, 2022. Estimates based on consensus estimates. Refer to page 9 for additional
Slide 13: About Southland
ABOUT SOUTHLAND
Slide 14: Southland at a glance
Southland Holdings LLC, headquartered in Grapevine, TX, is a leading provider of specialized infrastructure construction services across North America including bridges, tunneling, transportation and facilities, marine, steel structures, water and sewer treatment, and water pipelines. $2B+ BACKLOG ⁓
Slide 15: Company history and subsidiaries
With roots dating back to 1900, Southland Holdings and its subsidiaries form one of the largest construction companies in North America , with experience throughout the world. We have built transportation infrastructure that connects our nation, constructed water pipelines and built treatment facili
Slide 16: Company timeline
1929 1974 2014 2005 2008 2010 2011 2012 2016 2020 AMERICAN BRIDGE Established JOHNSON BROS. Established MOLE CONSTRUCTORS Established OSCAR RENDA CONTRACTING Established SOUTHLAND CONTRACTING Established OSCAR RENDA CONTRACTING Acquired SOUTHLAND HOLDINGS Formed RENDA PACIFIC Established KW PIPELINE
Slide 17: Executive management team
Southland Holdings’ executive management team leverages decades of experience to build a premier operation that is poised for significant future growth. As President and Chief Executive Officer of Southland Holdings, Frank Renda is responsible for identifying and establishing all necessary initiativ
Slide 18: Project segments: Civil
Civil WATER PIPELINE PUMP STATIONS LIFT STATIONS WATER & WASTEWATER TREATMENT PLANTS CONCRETE & STRUCTURAL STEEL OUTFALL TUNNELING Constructed over 12 million linear feet of large diameter water pipeline, moving over 67 quadrillion gallons of water (enough to fill the Great Lakes 400 times) Bored o
Slide 19: Project segments: Transportation
Transportation BRIDGES ROADWAYS MARINE DREDGING SHIP TERMINALS / PIERS SPECIALITY STRUCTURES & FACILITIES Iconic bridges and structures all around the world Over 20,000+ bridges and structures worldwide Diverse experience and capabilities in Suspension, Cable - Stayed, Precast, Moveable, Utility a
Slide 20: Client mix
LOCAL COUNTY AND CITY STATE FEDERAL PRIVATE Southland Holdings has a diverse customer base with a significant amount of work coming from recurring customers. US Bureau of Reclamation US Army Corps of Engineers Louisiana Department of Transportation Texas Department of Transportation Florida Departme
Slide 21: Peer group
Southland Holdings is a significant competitor in a field of larger construction companies due to the company’s range of services and ability to execute on complex projects. This gives Southland an advantage of pursuing projects with a limited list of potential bidders. PEER GROUP 21 BUILDING GREAT
Slide 22: Office Locations
OFFICE LOCATIONS 22 BUILDING GREAT THINGS
Slide 23: Owned equipment fleet
Southland primarily purchases equipment, which enables the Company to expand margins by continuing to utilize the equipment long after the equipment’s depreciable useful life has expired. Southland’s competitors, on the other hand, primarily rent equipment, losing out on the potential margin expansi
Slide 24: Industry Overview & Outlook
INDUSTRY OVERVIEW & OUTLOOK
Slide 25: Infrastructure Report Card
America’s Infrastructure Water Pipeline Every two minutes, there is a water main break, and an estimated 6 billion gallons of treated water lost each day in the U.S. Roadways Growing wear and tear on our nation's roads have left 43% of our public roadways in poor or mediocre condition, a number that
Slide 26: Infrastructure needs through 2039
Between now and 2039, the ASCE report estimates that nearly $13 trillion is needed across 11 infrastructure areas: highways, bridges, rail, transit, drinking water, stormwater, wastewater, electricity, airports, seaports and inland waterways. $4.59 trillion of this investment is required by 2025. BR
Slide 27: Financial Overview
FINANCIAL OVERVIEW
Slide 28: Historical Financial Performance
HISTORICAL 28 $349 $506 $563 $467 $623 $849 $1,048 $1,058 $1,279 $52 $76 $73 $46 $55 $104 $76 $86 $99 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A Historical Financial Perfor
Slide 29: Backlog
BACKLOG 29 BUILDING GREAT THINGS
Slide 30: Executive Summary
EXECUTIVE SUMMARY
Slide 31: Investment merits
COMPETITIVE ADVANTAGE INFRASTRUCTURE OUTLOOK TEAM STRENGTH FINANCIAL PERFORMANCE REPUTATION STRONG BACKLOG INVESTMENT MERITS 31 BUILDING GREAT THINGS