Shimmick Corporation · NASDAQ:SHIM
Shimmick — Q3 2024 Earnings Presentation
19 slides from Shimmick's earnings presentation, Nov 12, 2024
Slide 1: Earnings Presentation Third Quarter 2024
Earnings Presentation Third Quarter 2024 November 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 o
Slide 3: Company Overview
Company Overview Water Solutions Leader $834M 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: Third Quarter 2024 and Recent Highlights
Third Quarter 2024 and Recent Highlights • Settlement in the Company’s Golden Gate Bridge ("GGB") Project which will result in $97 million of cash collected before the end of 2024 and is the last major outstanding legal claim related to its Legacy Projects. • Hired Ural Yal as CEO to replace Steve R
Slide 5: Golden Gate Bridge Project Settlement
Golden Gate Bridge Project Settlement • d outstanding Settlement between a jointfor safety record venture the fullofyear the Company, Shimmick/Danny’s Joint Venture ("SDJV"), and the Golden Gate Bridge, Highway and Transportation District (the “District”). • Proceeds of $97 million, a contract chang
Slide 6: Selected Project Highlights
Selected Project Highlights SMITH CANAL GATE PROJECT KEY PROJECT STATISTICS (AS OF OCTOBER 31, 2024) Shimmick Solution Status The Smith Canal Gate Project in Stockton, With the project now recently completed, these California, addressed critical flood protection improvements significantly enhance St
Slide 7: Third Quarter Revenue and Gross Margin Results
Third Quarter Revenue and Gross Margin Results ($ in millions) Observations Shimmick Project revenue decline was primarily driven by lower activity on existing jobs and jobs winding down. Legacy Project Revenue was flat. The Legacy Loss Projects with negative gross margins are over 80% complete at t
Slide 8: Shimmick Backlog
Shimmick(1) Backlog 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 further fe
Slide 9: 2024 Guidance
2024 Guidance For the full fiscal year ending January 3, 2025, we expect, after excluding Foundations Projects revenue for the fiscal year ending December 29, 2023: • Shimmick Projects revenue to remain generally flat with gross margin between 4 to 7 percent • Legacy Projects revenue of $90 to $95 m
Slide 10: 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 10
Slide 11: Investor Contact
Investor Contact IR@shimmick.com 1-949-704-2350 investors.shimmick.com
Slide 12: Appendix
Appendix MAKE IT HAPPEN
Slide 13: 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 14: 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 15: 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 15
Slide 16: Select Long-Standing Customer Relationships
Select Long- Standing Orange County City and County of Metropolitan Water District of County of Los Water District San Francisco Southern California Angeles Customer Relationships Orange County Sanitation District Our resume leads to repeat business with significant players across water infrastructu
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) Three Months Ended September 27, 2024 September 29, 2023 Net (loss) income attributable to Shimmick Corporation (1,564) 34,567 Transformation costs(1) 1,924 - Stock-based compensation 1,337 496 ERP pre-implementation asset impairment and associated cost
Slide 18: 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 stock-based compensation, ERP pre-implementation asset impairment and associated costs, lega
Slide 19: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet September 27, December 29, (in thousands) 2024 2023 Assets Cash and Cash Equivalents 25,962 62,939 Total Current Assets 221,189 257,458 Total Assets 346,737 426,652 Liabilities Total Current Liabilities 278,176 271,253 Total Liabilities 345,764 356,162 Equity Tot