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
Q3 2022 Earnings Call November 1, 2022 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 since 2016; born of a vision that levers our entrepreneurial spirit. We offer a customer-centr
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: Third Quarter 2022 4
Slide 5: The Sterling Way
The Sterling Way Our culture is based on our commitment The Sterling Way in Action(3) for caring for our people, our customers, + Community engagement and volunteerism is supported at the highest our investors and our communities, that's levels of our organization. + Support educational partnerships
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 + Record Third Quarter 2022 + Results Continue to Outpace Expectations + Revenues: $556.9 million + Backlog(1): $1.67 billion with 13.1% margin + Net Income: $29.5 million + Combined Backlog(2): $1.90 billion with 12.9% margin (4) + EBITDA : $60.2 million + Cash
Slide 8: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions) Q3 2022 Q3 2021 ($ in millions) Q3 2022 Q3 2021 Revenues $ 556.9 $ 463.4 E-Infrastructure Solutions Gross Profit 82.0 57.8 Revenue $ 255.5 $ 121.3 G&A Expense (26.5) (19.6) Operating Income $ 37.5 $ 19.2 Intangible Amortization (3.5) (2.9) A
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 2.4 5-Year Credit Facility 2.1 $429M 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: Third Quarter 2022 10
Slide 11: Appendix
+ Appendix Sterling | STRL: Third Quarter 2022 11
Slide 12: Strategy Driving Profitable Growth
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 Sterling | STRL: Third Quarter 2022 12
Slide 13: 2022 Modeling Considerations
(1) 2022 Modeling Considerations 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-Controlling Interest Expense $2 to $3 Effective Income Tax Rate ~28% Net Income $94 to $98 Diluted EPS $3.08 to $3.21 Expected Dilutive Shares O
Slide 14: 2022 Modeling Considerations Continued
2022 Modeling Considerations Continued* 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 to $11 $11.8 Income Tax Expense (Federal) 24% of Pretax Income $19.4 Other Ca
Slide 15: EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net income attributable to Sterling common stockholders $ 29,523 $ 21,126 $ 74,736 $ 51,737 Depreciation and amortization
Slide 16: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2022 Guidance Low High Net income attributable to Sterling common stockholders $ 94 $ 98 Depreciation and amortization 50 51 Interest expense, net of interest income 19 20 Income tax expen
Slide 17: Historical EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL EBITDA RECONCILIATION (In thousands) (Unaudited) 2016 2017 2018 2019 2020 2021 Net (loss) income attributable to Sterling common $ (9,238) $ 11,617 $ 25,187 $ 39,901 $ 42,306 $ 62,645 stockholders Depreciation and amortization 15,699 16,994 16,
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.
Sterling Infrastructure — Q3 2022 Earnings Presentation on 6ix