Slide 1: Sterling Announces Name Change to Sterling Infrastructure, Inc.
We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. INVESTOR PRESENTATION Sterling Announces Name Change to Sterling Infrastructure, Inc. June 2022
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: Aligning our name to reflect our market-leading position
3S t e r l i n g I n v e s t o r P r e s e n t a t i o n Aligning our name to better reflect our position as a market-leading infrastructure solutions provider driven by our Entrepreneurial Spirit and Customer-Centric Culture along with a focused, disciplined and bold determination. We are… We build
Slide 4: Sterling Infrastructure, Inc.
S t e r l i n g I n v e s t o r P r e s e n t a t i o n 4 Sterling Infrastructure, Inc.
Slide 5: S n t a t i o n
S t e r l i n g I n v e s t o r P r e s e n t a t i o n 5
Slide 6: Rebranding our company to better reflect our position
6S t e r l i n g I n v e s t o r P r e s e n t a t i o n Rebranding our company to better reflect our position as a market-leading infrastructure solutions provider driven by our Entrepreneurial Spirit and Customer-Centric Culture along with a Focused + Disciplined + Bold Determination. We are… We b
Slide 7: Delivering Value: Proven Performance & Strong Operational Execution
Delivering Value: Sterling’s Proven Performance & Strong Operational Execution 7S t e r l i n g I n v e s t o r P r e s e n t a t i o n Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Pee
Slide 8: Successful Strategic Business Transformation Created Sterling Infrastructure, Inc.
Successful Strategic Business Transformation Created Sterling Infrastructure, Inc. 8S t e r l i n g I n v e s t o r P r e s e n t a t i o n*See Historical EBITDA Reconciliation on page 24 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2016 2017 2018 2019 2020 2021 2022E EBITDA* (2016 - 2022E) Teal
Slide 9: WHO is Sterling?
WHO is Sterling? + E-Infrastructure Solutions + Highest margins in portfolio + Fastest growing segment in revenue growth + Develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, commercial, warehousing, transportation, energy & more + B
Slide 10: Expanded Geographic Footprint in Strong Markets with Top Customers
Sterling’s Expanded Geographic Footprint in Strong Markets with Top Customers 10S t e r l i n g I n v e s t o r P r e s e n t a t i o n E-Infrastructure Solutions + Expanded geographic footprint providing value-added solutions to blue-chip customers in all major East Coast markets Building Solutions
Slide 11: WHY Sterling?
WHY Sterling? + We build value for investors seeking high margins, healthy cash flow, proven performance & strong operational execution + Committed to our strategic vision, our blueprint for bottom-line growth, reducing risk and consistently outperforming peers + We are levering the foundation we bu
Slide 12: Strategic Execution | Proven Results | Strong Growth
Strategic Execution | Proven Results | Strong Growth 12S t e r l i n g I n v e s t o r P r e s e n t a t i o n Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance 2015 Margin
Slide 13: Protecting The Community
Protecting The Community Measures regularly practiced at project sites are safety barriers to protect workers, neighboring communities, vegetation and habitats. With our Rolled Ankle Protection Program in place, an Atlanta project crushed tons of rock to create safe walking paths for all workers. Re
Slide 14: First Quarter 2022 Results
+ First Quarter 2022 Results S t e r l i n g I n v e s t o r P r e s e n t a t i o n 14
Slide 15: First Quarter 2022 Results
First Quarter 2022 Results 15S t e r l i n g I n v e s t o r P r e s e n t a t i o n Revenues: $410.3 million Net Income: $19.3 million Diluted EPS: $0.64 cents + Backlog: $1.53 billion with 12.8% margin(1) + Combined Backlog: $1.67 billion with 12.6%(1) + Cash & Cash Equivalents: $80.4 million(1) +
Slide 16: Quarterly Consolidated and Segment Results
16S t e r l i n g I n v e s t o r P r e s e n t a t i o n Quarterly Consolidated and Segment Results (1) EBITDA Reconciliation on page 23 ($ in millions) Q1 2022 Q1 2021 Revenues $ 410.3 $ 315.3 Gross Profit 56.1 45.0 G&A Expense (23.1) (17.1) Intangible Amortization (3.6) (2.9) Acquisition Related
Slide 17: Increased EBITDA and Cash Flow Drives Liquidity Strategy
17S t e r l i n g I n v e s t o r P r e s e n t a t i o n Increased EBITDA and Cash Flow Drives Liquidity Strategy We expect to pursue strategic uses of our liquidity, such as, strategic acquisitions, investing in capital equipment and managing leverage. Capital allocation focus + Long-term sharehol
Slide 18: 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 S t e r l i n g I n v e s t o r P r e s e n t a t i o n 18
Slide 19: Appendix
+ Appendix S t e r l i n g I n v e s t o r P r e s e n t a t i o n 19
Slide 20: Strategy Driving Profitable Growth
20S t e r l i n g I n v e s t o r P r e s e n t a t i o n Strategy Driving Profitable Growth* *See EBITDA Reconciliations on pages 24 & 25
Slide 21: 2022 Modeling Considerations
21S t e r l i n g I n v e s t o r P r e s e n t a t i o n 2022 Modeling Considerations(1) (1) In millions except for EPS and percentages (2) Excludes growth related to the acquired Petillo business of approx. $225M for 2022 (3) See EBITDA Reconciliation on page 25 Revenue $1,825 to $1,875 Gross Marg
Slide 22: 2022 Modeling Considerations Continued
22S t e r l i n g I n v e s t o r P r e s e n t a t i o n 2022 Modeling Considerations Continued* *In millions except for percentages 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
Slide 23: 23S n t a t i o n
23S t e r l i n g I n v e s t o r P r e s e n t a t i o n
Slide 24: 24S n t a t i o n
24S t e r l i n g I n v e s t o r P r e s e n t a t i o n
Slide 25: 25S n t a t i o n
25S t e r l i n g I n v e s t o r P r e s e n t a t i o n
Slide 26: ESG at Sterling: The Sterling Way
ESG at Sterling: The Sterling Way 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 providing infrastructure solutions and services for the betterment of
Slide 27: 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