Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — Merger or Acquisition (January 2022)
14 slides from Sterling Infrastructure's merger presentation, Jan 5, 2022
Slide 1: Sterling Acquires Petillo, an Industry Leading Specialty Site Development Company
We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. STERLING ACQUIRES PETILLO, AN INDUSTRY LEADING SPECIALTY SITE DEVELOPMENT COMPANY January 6, 2022
Slide 2: Disclosure: Forward-Looking Statements
2 DISCLOSURE: Forward-Looking Statements This presentation contains statements that are considered forward-looking statements within the meaning of the federal securities laws. These forward- looking statements are subject to a number of risks and uncertainties, many of which are beyond our control,
Slide 3: Continuing Our Strategic Vision
3S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 Continuing Our Strategic Vision Focused & Moving Forward • Executing our strategic vision: Solidify the Base Grow High-Margin Products Expansion into Adjacent Markets • Continuing our key objectives: Bottom-line Growth Risk Reduction
Slide 4: Petillo Overview and Transaction Summary
Petillo Overview Transaction Summary Leading specialty site development solution provider in the Northeast and Mid-Atlantic regions focused on e- infrastructure projects Revenue ~$212 million ’17–’21E Rev CAGR ~29% Operating Margin ~14% Field Employees 300+ Service Profile Expansion of geographic fo
Slide 5: Expanding our geographic footprint
5S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 Expanding our geographic footprint into: New Jersey Maryland New York Pennsylvania STRL’s 2021 Footprint: Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina Tennessee Virginia West Virginia 3-Year Strategy: Solidify the B
Slide 6: Highly Attractive Financial Profile at an Accretive Price
6S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 Highly Attractive Financial Profile at an Accretive Price ( 1 ) T h e C o m p a n y d e f i n e s E B I T D A a s G A A P n e t i n c o m e , a d j u s t e d f o r d e p r e c i a t i o n a n d a m o r t i z a t i o n , n e t i n t e r e s t e x
Slide 7: Leverage Remains within Target Range
Leverage Remains within Target Range 7S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 Cash Price $175,000 Sterling Common Stock 20,000 Base Purchase Price $195,000 Additional New Term Loan $140,000 Available Balance Sheet Cash 35,000 Cash Price $175,000 Post-acquisition pro forma leverage incr
Slide 8: Sterling's Evolution Continues
8 Sterling’s Evolution Continues S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 Diversified, customer-centric, market-focused portfolio of specialty infrastructure services. Platform for strong growth of higher-margin lower-risk work Execution on strategic plan of solidifying the base, gr
Slide 9: 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 9 Contact Us S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2
Slide 10: Appendix
We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. + 10S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 Appendix
Slide 11: Data Centers Market Growth
Data Centers Market Growth Data Centers are defined as commercial flex telecom and data hosting sites. Source: CoStar Group 1. States include FL, GA, MD, NC, NJ, NY, PA, SC, TN, VA Total Data Centers Total U.S. Market Total Data Centers Under Construction S T R L I R _ A n n o u n c e m e n t 0 1 /
Slide 12: Warehouses Market Growth
Warehouses Market Growth Source: CoStar Group 1. States include AL, FL, KY, GA, MD, NC, NJ, NY, PA, SC, TN, VA, WV Total Distribution Warehouses Total Distribution Warehouses Under Construction Buildings Under Construction Under Construction Sq. Ft. (in thousands) S T R L I R _ A n n o u n c e m e n
Slide 13: EBITDA Reconciliation
EBITDA Reconciliation 13S T R L I R _ A n n o u n c e m e n t 0 1 / 0 5 / 2 2 ( 1 ) T h e C o m p a n y d e f i n e s E B I T D A a s G A A P n e t i n c o m e , a d j u s t e d f o r d e p r e c i a t i o n a n d a m o r t i z a t i o n , n e t i n t e r e s t e x p e n s e , t a x e s , a n d g a
Slide 14: Thank You
We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. THANK YOU
Sterling Construction — Merger or Acquisition (January 2022) on 6ix