Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q3 2024 Earnings Presentation
19 slides from Sterling Infrastructure's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call November 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: Transformation Built the Foundation for Success
Transformation Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform 2,500 12% 10.4% 9.0% 10% 2,000 7.6% Revenue CAGR 7.5% 8% 2019-2023: +21% 1,500 6% Operating margin %* Revenue ($ millions)* 1,000 4.0% 3.4% 4% 2.2% 500 2% 0 0% (2.0)% (2)% -500 (4.9)
Slide 5: Transformation Built the Foundation for Success
Transformation Built the Foundation for Success 2015 – 2019: Strategic Transformation 2020 +: Leveraging the Platform $5.00 $4.44 $4.00 EPS CAGR 2019-2023: +38% $3.16 $3.00 $2.11 $2.00 $1.53 Diluted EPS* $1.24 $1.00 $0.60 $0.10 $— $(1.00) $(0.66) $(2.00) $(2.40) $(3.00) 2015 2016 2017 2018 2019 2020
Slide 6: Third Quarter 2024 Results
+ Third Quarter 2024 Results Sterling | STRL: Third Quarter 2024 6
Slide 7: Third Quarter 2024 Results Highlights
Third Quarter 2024 Results Highlights + Revenues: $593.7 million + Net Income: $61.3 million + Diluted EPS: $1.97 + EBITDA(1): $100.8 million + Cash Flow from Operations(2): $322.8 million + Cash & Cash Equivalents(3): $648.1 million + Backlog(3): $2.06 billion with 16.8% margin + Combined Backlog(4
Slide 8: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions, except per share data) Q3 2024 Q3 2023 ($ in millions) Q3 2024 Q3 2023 Revenues $ 593.7 $ 560.3 E-Infrastructure Solutions Gross Profit 129.8 91.9 Revenue $ 263.9 $ 253.9 G&A Expense (30.7) (25.2) Operating Income $ 68.1 $ 35.9 Intangible Am
Slide 9: Remaining Performance Obligations (RPOs)
(1) Remaining Performance Obligations (RPOs) September 30, December 31, September 30, ($ in millions) 2024 2023 2023 E-Infrastructure Solutions RPOs $ 918.5 $ 813.7 $ 891.4 Transportation Solutions RPOs 1,083.6 1,184.5 1,022.9 Building Solutions RPOs - Commercial 53.0 68.8 96.1 Total RPOs $ 2,055.1
Slide 10: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Increased EBITDA and Cash Flow Drives Liquidity Strategy Sterling is comfortable with a Debt/EBITDA coverage Debt/EBITDA Coverage Ratio ratio of +/-2.5X. 1.3X 1.3X 1.0X 5-Year Credit Facility 1.0X 0.8X $324M Term Loan Borrowings $75M Revolving Credit Facility (Undrawn) 0.5X 0.3X Key Cash Flow Consid
Slide 11: Summary
Summary Sterling, A Leading Provider of Infrastructure Services in the U.S. Successful strategic Strong, Continued Strong foundation with multi-year, opportunity Robust balance historical stock strong, secular growth for margin sheet, FCF performance diversified drivers expansion platform Sterling |
Slide 12: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com Sterling | STRL: Third Quarter 2024 12
Slide 13: Appendix
+ Appendix Sterling | STRL: Third Quarter 2024 13
Slide 14: 2024 Modeling Considerations
(1) 2024 Modeling Considerations Revenue $2,150 to $2,175 Gross Margin 19.0% to 20.0% G&A Expense as % of Revenue (Excluding ~5% Intangible Amortization) Intangible Amortization $17 Other Operating Expense Net $23 to $25 JV Non-Controlling Interest Expense ~$12 Effective Income Tax Rate ~24% Net Inc
Slide 15: 2024 Modeling Considerations Continued
2024 Modeling Considerations Continued* Non-Cash Items FY 2024 Expectations FY 2023 Depreciation $50 $42.2 Intangible Amortization $17 $15.2 Debt Issuance Cost Amortization $1 to $2 $1.7 Stock-based Compensation $18 to $20 $14.6 Deferred Taxes $7 to $8 $14.7 Other Cash Flow Items FY 2024 Expectation
Slide 16: Adjusted Net Income Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME RECONCILIATION (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income attributable to Sterling common stockholders $ 61,321 $ 39,353 $ 144,248 $ 98,482 Acquisition rel
Slide 17: EBITDA Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA RECONCILIATION (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income attributable to Sterling common $ 61,321 $ 39,353 $ 144,248 $ 98,482 stockholders Depreciation and amortizatio
Slide 18: 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 $ 180 $ 185 Depreciation and amortization 67 67 Interest expense, net of interest income — — Income tax expen
Slide 19: 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.
Sterling Infrastructure — Q3 2024 Earnings Presentation on 6ix