Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q1 2024 Earnings Presentation
17 slides from Sterling Infrastructure's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Earnings Call
Q1 2024 Earnings Call May 7, 2024 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 a multi-year strategic business transformation; born of a vision that levers our entrepreneurial spirit. We offer a customer-centric, marke
Slide 4: Strategic Transformation at a Glance
Strategic Transformation at a Glance Sterling | STRL: First Quarter 2024 4
Slide 5: First Quarter 2024 Results
+ First Quarter 2024 Results Sterling | STRL: First Quarter 2024 5
Slide 6: First Quarter 2024 Results Highlights
First Quarter 2024 Results Highlights + Revenues: $440.4 million + Net Income: $31.0 million + Diluted EPS: $1.00 + EBITDA(1): $55.7 million + Cash Flow from Operations(2): $49.6 million + Cash & Cash Equivalents(3): $480.4 million + Backlog(3): $2.35 billion with 15.6% margin + Combined Backlog(4):
Slide 7: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions) Q1 2024 Q1 2023 ($ in millions) Q1 2024 Q1 2023 Revenues $ 440.4 $ 403.6 E-Infrastructure Solutions Gross Profit 76.9 61.7 Revenue $ 184.5 $ 205.8 G&A Expense (27.3) (23.3) Operating Income $ 27.2 $ 24.3 Intangible Amortization (4.3) (3.7) O
Slide 8: Remaining Performance Obligations (RPOs)
(1) Remaining Performance Obligations (RPOs) March 31, December 31, ($ in millions) 2024 2023 E-Infrastructure Solutions RPOs $ 961.0 $ 813.7 Transportation Solutions RPOs 1,305.4 1,184.5 Building Solutions RPOs - Commercial 85.7 68.8 Total RPOs $ 2,352.1 $ 2,067.0 (1) Our remaining performance obli
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 Coverage Ratio EBITDA coverage ratio of +/-2.5X. 1.3X 1.2X 5-Year Credit Facility 1.0X 1.1X $337M Term Loan Borrowings 0.8X $75M Revolving Credit Facility (Undrawn
Slide 10: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com Sterling | STRL: First Quarter 2024 10
Slide 11: Appendix
+ Appendix Sterling | STRL: First Quarter 2024 11
Slide 12: 2024 Modeling Considerations
(1) 2024 Modeling Considerations Revenue $2,125 to $2,215 Gross Margin ~17.5% G&A Expense as % of Revenue (Excluding ~5% Intangible Amortization) Intangible Amortization $17 Other Operating Expense Net $17 to $19 JV Non-Controlling Interest Expense ~$10 Effective Income Tax Rate ~25% Net Income $160
Slide 13: 2024 Modeling Considerations Continued
2024 Modeling Considerations Continued* Non-Cash Items FY 2024 Expectations FY 2023 Depreciation $48 to $49 $42.2 Intangible Amortization $17 $15.2 Debt Issuance Cost Amortization $1 to $2 $2.0 Stock-based Compensation $14 to $16 $12.6 Deferred Taxes $15 to $17 $14.7 Other Cash Flow Items FY 2024 Ex
Slide 14: Adjusted Net Income Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Net income attributable to Sterling common stockholders $ 31,048 $ 19,649 Acquisition related costs 36 190 Adjusted net income attributable to Sterling co
Slide 15: EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Net income attributable to Sterling common $ 31,048 $ 19,649 stockholders Depreciation and amortization 16,258 13,692 Interest expense, net of interest income 762 5,55
Slide 16: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2024 Guidance Low High Net income attributable to Sterling common stockholders $ 160 $ 170 Depreciation and amortization 65 66 Interest expense, net of interest income 3 4 Income tax expen
Slide 17: 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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