Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — Investor Presentation (September 2021)
17 slides from Sterling Infrastructure's investor presentation, Sep 22, 2021
Slide 1: Investor Relations Presentation 2021
—— STERLING INNOVATION IN INFRASTRUCTURE Investor Relations Presentation 2021
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: Why Sterling?
WHY STERLING? We are building and servicing the infrastructure that enables our economy to run, our people to move and our country to grow. Sterling is a market-leading infrastructure service provider of e-infrastructure, building and transportation solutions. We build value for investors seeking hi
Slide 4: Who We Are
WHO WE ARE Sterling offers a customer-centric, market-focused portfolio of goods and services. ¥ Continued execution and sustainability of strategy of solidifying the base, growing high-margin products, and expanding into adjacent markets v Geographically positioned in the southern & southwestern U.
Slide 5: Focused & Executing: Strategic Vision
Focused & Executing [RRs Bottom-Line Growth, Risk Reduction, S t ra te g i Cc V i S i @) n Exceed Peer Performance 20% 2024-2026 Blended Margin Year Strategy Detail Result . 2015 | 95% of business was Heavy Civil Continue Strategic Vision 18% Solidify the Base Executing to Introduced Sterling's 3-Ye
Slide 6: We've Evolved Beyond Roads & Bridges
We've Evolved Beyond Roads & Bridges Tomorrow’s Solutions = Today's Services = Solid Service Offerings = 2020 Revenue = 3-Year Revenue Growth __ Expectations Significant Growth __ Potential ~~ 2020 % of Revenue & — % of Operating Income E-Infrastructure Building Solutions Solutions Specialty Residen
Slide 7: Strategy Focused on Bottom Line
Strategy Focused on Bottom Line By executing the strategy to meet the future demands of the changing infrastructure landscape, we will deliver an even stronger margin profile * Cust tric, ket-f dit service provider + Post-acquisition organic growth has been significant resulting in margin expansion
Slide 8: Acquisitions are Aligned to our Strategic Vision
Acquisitions are Aligned to our Strategic Vision 3-Year Strategy: Solidify the Base, Grow High-Margin Products, Expansion into Adjacent Markets Our acquisition standards have always been centered on specific strategic, financial and cultural considerations including shift toward higher-margin, lower
Slide 9: YTD Consolidated and Segment Results
YTD Consolidated and Segment Results Six Months Ended June 30, Six Months Ended June 30, Ce i d Results (S in millions) 2021 2020 Segment Results (S in millions) 2021 2020 Revenues § 717.0 $ 696.7 Heavy Civil Gross Margin 14.1% 13.6% Revenue 350.2 $ 376.1 Operating Income $ 55.5 $ 45.1 Operating Inc
Slide 10: Increased EBITDA and Cash Flow Drives De-levering Strategy
Increased EBITDA and Cash Flow Drives De-levering Strategy /— Forward Looking EBITDA Debt Coverage Ratio Pro Forma Q3 2019 6/30/2021 12/31/2021E Capital allocation focus + Long-term shareholder value + Complementing organic growth in existing and new markets ee cash flow profile provides flexibility
Slide 11: Governance & Ethics
(— >) GOVERNANCE & ETHICS = + Our commitment to an ethical culture starts at the highest level with oversight from our Board of Directors & Executive Leadership Team e e r | n g rs | y + Our Chief Compliance Officer leads the ethics and compliance activities Our Core Values: Safety, Respect and Trus
Slide 12: 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
Slide 13: Appendix
Slide 14: Strategy Driving Profitable Growth
Strategy Driving Profitable Growth $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Revenue (M) 15.4% Reve we CAGES 2016 2017 2018 2019 2020 2021 Elevated Combined Backlog with Robust Margins 400% 350% 300% 250% 200% 150% 100% 50% 0% Cumulative Growth: Gross Profit vs. Revenue - 2016 2017 2018 201
Slide 15: 2021 Modeling Considerations
2021 Modeling Considerations* Revenue Gross Margin G&A Expense as % of Revenue Other Operating Expense Net JV Non-Controlling Interest Expense Effective Income Tax Rate Net Income Diluted EPS Expected Dilutive Shares Outstanding EBITDA * In millions except for diluted $1,460 to $1,490 Growth ~14% Th
Slide 16: 2021 Modeling Considerations Continued
2021 Modeling Considerations Continued (sum) NON-CASH ITEMS FY 2021 Expectations FY 2020 Depreciation $21 to $23 $21.3 Intangible Amortization $11 to $12 $11.4 Debt Issuance Cost Amortization $2 to $3 $3.2 Stock-based Compensation $7 to $9 $11.6 Income Tax Expense (Federal) 25% of Pretax Income $19.
Slide 17: TTM EBITDA Reconciliation
TTM EBITDA Reconciliation Six Months Ended T™ Jun 30, 2021 June 30, 2021 Net income attributable to Sterling common stockholders $ 30,611 $ Sil e2 Depreciation and amortization 16,707 32,951 Interest expense, net of interest income HG, 7A 25,694 Income tax expense 12,939 26,978 (Gain) loss on exting
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