Slide 1: Earnings Presentation First Quarter 2024
Earnings Presentation First Quarter 2024 May 2024 Building a Sustainable and Resilient Water Future
Slide 2: Disclaimer
Disclaimer – This presentation is being delivered on behalf of Shimmick Corporation (the “Company”). The sole purpose of this presentation is to provide information in connection with a review of the Company’s operations and/or financial status. This presentation does not purport to be all-inclusive
Slide 3: Company Overview
Company Overview Water Solutions Leader $1.0B We rank as a top 10 water solutions provider(1). With a dedicated team Backlog of 1,300+ skilled employees(2), we have built a strong team, reputation and competitive position. Vertically Integrated 75%+ We are vertically integrated and often self-perfor
Slide 4: First Quarter 2024 and Recent Highlights
First Quarter 2024 and Recent Highlights • Reported revenue of $120 million, which includes $90 million of Shimmick Projects(1) revenue, with a loss of $33 million • Shimmick Projects (1) revenue of $90 million. Gross margin was slightly negative for the first quarter of 2024 due to costs related to
Slide 5: Selected Project Highlights
Selected Project Highlights NORTH PURE WATER TREATMENT FACILITY AND PUMP STATION Water Treatment KEY PROJECT STATISTICS (AS OF APRIL 2024) Shimmick Solution Status Shimmick is implementing new technology to purify With more than 50 percent complete, Shimmick is recycled water, providing a safe and s
Slide 6: First Quarter Revenue and Gross Margin Results
First Quarter Revenue and Gross Margin Results ($ in millions) SHIMMICK PROJECT REVENUE (1) SHIMMICK PROJECT GROSS MARGIN (1) Observations $90 $5 Shimmick Project revenue growth was primarily driven by new jobs ramping up $88 The decline in Shimmick $(1) Projects gross margin was Q1 2023 Q1 2024 Q1
Slide 7: Shimmick Backlog Growth
Shimmick(1) Backlog Growth Our Backlog is USA-based, Predominantly Publicly-Funded and Fixed-Price Backlog Conversion • More than 75% of the backlog expected to be completed in the next 24 months • Legacy Projects backlog continues to wind down • Robust pipeline of bids expected to increase with fur
Slide 8: 2024 Guidance
2024 Guidance SHIMMICK PROJEC T REVENUE (1 ) SHIMMICK PROJEC T GROSS For the full fiscal year ending December 27, 2024, we MARGIN (1 ) expect that after excluding Foundations Projects 7% – 13% revenue of $64 million for the fiscal year ending $396 – 418M December 29, 2023: 7% • Shimmick Projects rev
Slide 9: Highlights
Highlights Large Addressable Market Vertical Integration Mitigates Risk Established Customer Base and Focus on California Publicly Funded Backlog Transitioning to a Higher Margin Portfolio Potential Acquisitions to Improve Growth & Margin 9
Slide 10: Investor Contact
Investor Contact IR@shimmick.com 1-949-704-2350 investors.shimmick.com
Slide 11: Appendix
Appendix MAKE IT HAPPEN
Slide 12: Strong Market Tailwinds
Strong Market Tailwinds Supporting Federal Legislation Key Market Drivers Bipartisan Budget / America’s Water Infrastructure Act • Climate Change 2018 Providing for water infrastructure improvements • Water Scarcity • Water Security Infrastructure & Jobs Act 2021 Funding for clean drinking water for
Slide 13: Growth Strategy
Growth Strategy Expanding on our Core Focus with Select Acquisitions Organic Focus Acquisition Focus Strengthen Smart Water, Core Software, Remediation, & O&M • Transitioning to Higher Margin Portfolio • Accretive • Selective Bidding • Higher Margin • Underwriting Risk • Recurring Revenues • Project
Slide 14: Shimmick Water Projects and Solutions
Shimmick Water Projects and Solutions Water Resources & Other Water Treatment & Other Flood Protection Species Protection Water Recycling Water Purification Water Storage Water Conveyance Desalination Water/Wastewater Treatment 14
Slide 15: Select Long-Standing Customer Relationships
Select Long- Standing Orange County City and County of Metropolitan Water District of County of Los Customer Water District San Francisco Southern California Angeles Relationships Orange County Sanitation District Our resume leads to repeat business with significant players across water infrastructu
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) Three Months Ended March 29, 2024 March 31, 2023 Net loss income attributable to Shimmick Corporation (33,333) (9,337) Changes in fair value of contingent consideration 237 220 Transaction-related costs - 809 Stock-based compensation 998 528 Legal fees
Slide 17: Non-GAAP Financial Measures Explanatory Notes
Non-GAAP Financial Measures Explanatory Notes Adjusted Net Loss and Adjusted Diluted Earnings Per Common Share Adjusted net loss represents net loss attributable to Shimmick Corporation adjusted to eliminate changes in fair value of contingent consideration, transaction-related costs, stock-based co
Slide 18: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet March 29, December 29, (in thousands) 2024 2023 Assets Cash and Cash Equivalents 27,327 62,939 Total Current Assets 225,665 257,458 Total Assets 377,993 426,652 Liabilities Total Current Liabilities 269,752 271,253 Total Liabilities 339,875 356,162 Equity Total S