Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q1 2022 Earnings Presentation
18 slides from Sterling Infrastructure's earnings presentation, May 3, 2022
Slide 1: 1st Quarter Earnings Call
1 ST QUARTER EARNINGS CALL May 3, 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 forwa
Slide 3: WHO is Sterling?
WHO is Sterling? Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance Sterling, a market-leading infrastructure service provider of + E-Infrastructure Solutions e-infrastructu
Slide 4: WHY Sterling?
WHY Sterling? A story of successful execution of multi-year strategic business transformation since 2016; born of a strategy and vision that levers our entrepreneurial spirit and our customer-centric culture. Five Year Stock Price Performance Sterling vs S&P 500 Sterling exceeded + Our strategic ele
Slide 5: 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 Strategic Vision Tealstone Plateau Petillo & Kimes 2021 Acquisitions
Slide 6: ESG at Sterling: The Sterling Way
ESG at Sterling: The Sterling Way Our Core Values: Safety, Respect and Trust, Excellence, Integrity At Sterling, we understand that what we do has an immediate and significant positive impact on improving human conditions + We build our businesses around meeting the needs of the people we serve prov
Slide 7: First Quarter 2022 Results
+ First Quarter 2022 Results Sterling: First Quarter 2022 7
Slide 8: First Quarter 2022 Results
First Quarter 2022 Results Sterling Reports Record First Quarter 2022 Results Earnings Continue to Outpace Expectations Petillo Delivers Immediately Accretive Earnings Strong revenue growth from all segments (as compared to first quarter 2021) Revenues: $410.3 million + Up 25.9%, excluding our recen
Slide 9: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions) Q1 2022 Q1 2021 ($ in millions) Q1 2022 Q1 2021 Revenues $ 410.3 $ 315.3 E-Infrastructure Solutions Gross Profit 56.1 45.0 Revenue $ 168.9 $ 96.6 G&A Expense (23.1) (17.1) Operating Income $ 21.3 $ 17.8 Intangible Amortization (3.6) (2.9) Op
Slide 10: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Increased EBITDA and Cash Flow Drives Liquidity Strategy Forward Looking EBITDA Debt Coverage Ratio Sterling is comfortable with a forward looking debt/EBITDA coverage ratio of +/-2.5X. 5-Year Credit Facility $441M Term Loan Borrowings $75M Revolving Credit Facility (Undrawn) Key Cash Flow Considera
Slide 11: Contact Us
+ Contact Us Sterling Ron Ballschmiede, Chief Financial Officer Mary Morley, Investor Relations Sterling Construction Company, Inc. Tel: (281) 214-0777 The Equity Group Inc. Jeremy Hellman Tel: (212) 836-9626 jhellman@equityny.com Sterling: First Quarter 2022 11
Slide 12: Appendix
+ Appendix Sterling: First Quarter 2022 12
Slide 13: Strategy Driving Profitable Growth
Strategy Driving Profitable Growth Sterling: First Quarter 2022 13
Slide 14: 2022 Modeling Considerations
2022 Modeling Considerations(1) Revenue $1,825 to $1,875 Gross Margin ~14.5% G&A Expense as % of Revenue ~5.0% Three Year Revenue Growth Other Operating Expense Net $12 to $14 Expectations: JV Non-Controlling Interest Expense $2 to $3 E-Infrastructure Solutions(2) 7% to 9% Effective Income Tax Rate
Slide 15: 2022 Modeling Considerations Continued
2022 Modeling Considerations Continued* NON-CASH ITEMS FY 2022 Expectations FY 2021 Depreciation & Amortization $50 to $54 $34.2 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $5 to $7 $11.8 Income Tax Expense (Federal) 25% of Pretax Income $19.4 OTHER ITEMS FY 2022 Expectati
Slide 16: Sterling: First Quarter 2022
Sterling: First Quarter 2022 16
Slide 17: Sterling: First Quarter 2022
Sterling: First Quarter 2022 17
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 — Q1 2022 Earnings Presentation on 6ix