Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Investor Presentation (June 2022)
27 slides from Sterling Infrastructure's investor presentation, June 2022
Slide 1: Sterling Announces Name Change to Sterling Infrastructure, Inc.
INVESTOR PRESENTATION Sterling Announces Name Change to Sterling Infrastructure, Inc. June 2022 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 forwa
Slide 3: Aligning our name to better reflect our position as an infrastructure solutions provider
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 and service the infrastructure that enables our economy
Slide 4: Sterling Infrastructure, Inc.
Sterling Infrastructure, Inc. Sterling Investor Presentation 4
Slide 5: Sterling Investor Presentation
Sterling Investor Presentation 5
Slide 6: Delivering value-added solutions by our commitment to our growth strategy
Delivering value-added solutions by our commitment to our growth strategy: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Focused on our key objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance Rebranding our company to better reflect our positio
Slide 7: Delivering Value: Sterling's Proven Performance & Strong Operational Execution
Delivering Value: Sterling’s Proven Performance & Strong Operational Execution Diversified Business Mix CAGR (2016 - 2022E) Results in Margin Growth from 6.1% to 14.5% Revenue Gross Profit EBITDA* 2000 300 300 Commercial Building 18% 36% 66% 5% 20% 1800 250 250 1600 1400 E- 200 200 Infrastructure 41
Slide 8: Successful Strategic Business Transformation Created Sterling Infrastructure, Inc.
Successful Strategic Business Transformation Created Sterling Infrastructure, Inc. E-Infrastructure, Building & $200 EBITDA* (2016 - 2022E) Transportation $180 $160 $140 $120 Heavy Civil, $100 Residential $80 Heavy Civil & & Specialty $60 Residential $40 $20 $- 2016 2017 2018 2019 2020 2021 2022E Te
Slide 9: WHO is Sterling?
WHO is Sterling? A story of successful execution of multi-year strategic business transformation since 2016; born of a strategy and vision that levers our entrepreneurial spirit and our customer-centric culture. Sterling, a market-leading infrastructure service provider of + E-Infrastructure Solutio
Slide 10: Sterling's Expanded Geographic Footprint in Strong Markets with Top Customers
Sterling’s Expanded Geographic Footprint in Strong Markets with Top Customers E-Infrastructure Solutions + Expanded geographic footprint providing value-added solutions to blue-chip customers in all major East Coast markets Building Solutions + Expanded geographic footprint servicing the Nation’s To
Slide 11: WHY Sterling?
WHY Sterling? Five Year Stock Price Performance Sterling vs S&P 500 + We build value for investors seeking high margins, Sterling healthy cash flow, proven performance & strong exceeded S&P 500 by operational execution 64.7% + Committed to our strategic vision, our blueprint for bottom-line growth,
Slide 12: Strategic Execution | Proven Results | Strong Growth
Strategic Execution | Proven Results | Strong Growth Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance Strategic Vision Tealstone Plateau Petillo & Kimes 2021 Acquisitions
Slide 13: The Sterling Way
The Sterling Way Taking care of our employees, customers, the environment and our communities is what we do every day Protecting Habitats Protecting The Community Reducing our Carbon Footprint Onsite project management controls for avoidance, minimization Measures regularly practiced at project site
Slide 14: First Quarter 2022 Results
+ First Quarter 2022 Results Sterling Investor Presentation 14
Slide 15: First Quarter 2022 Results
First Quarter 2022 Results Sterling Reports Record First Quarter 2022 Results Earnings Continue to Outpace Expectations Petillo Delivers Immediately Accretive Earnings Strong revenue growth from all segments (as compared to first quarter 2021) Revenues: $410.3 million + Up 25.9%, excluding our recen
Slide 16: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results ($ in millions) Q1 2022 Q1 2021 ($ in millions) Q1 2022 Q1 2021 Revenues $ 410.3 $ 315.3 E-Infrastructure Solutions Gross Profit 56.1 45.0 Revenue $ 168.9 $ 96.6 G&A Expense (23.1) (17.1) Operating Income $ 21.3 $ 17.8 Intangible Amortization (3.6) (2.9) Op
Slide 17: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Increased EBITDA and Cash Flow Drives Liquidity Strategy Forward Looking EBITDA Debt Coverage Ratio Sterling is comfortable with a forward looking debt/EBITDA coverage ratio of +/-2.5X. 5-Year Credit Facility $441M Term Loan Borrowings $75M Revolving Credit Facility (Undrawn) Key Cash Flow Considera
Slide 18: Contact Us
+ Contact Us Sterling Ron Ballschmiede, Chief Financial Officer Mary Morley, Investor Relations Sterling Infrastructure, Inc. Tel: (281) 214-0777 The Equity Group Inc. Jeremy Hellman Tel: (212) 836-9626 jhellman@equityny.com Sterling Investor Presentation 18
Slide 19: Appendix
+ Appendix Sterling Investor Presentation 19
Slide 20: Strategy Driving Profitable Growth
Strategy Driving Profitable Growth* *See EBITDA Reconciliations on pages 24 & 25 Sterling Investor Presentation 20
Slide 21: 2022 Modeling Considerations
2022 Modeling Considerations(1) Revenue $1,825 to $1,875 Gross Margin ~14.5% G&A Expense as % of Revenue ~5.0% Three Year Revenue Growth Other Operating Expense Net $12 to $14 Expectations: JV Non-Controlling Interest Expense $2 to $3 E-Infrastructure Solutions(2) 7% to 9% Effective Income Tax Rate
Slide 22: 2022 Modeling Considerations Continued
2022 Modeling Considerations Continued* 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 $7 $11.8 Income Tax Expense (Federal) 25% of Pretax Income $19.4 OTHER ITEMS FY 2022 Expectati
Slide 23: Sterling Investor Presentation
Sterling Investor Presentation 23
Slide 24: Sterling Investor Presentation
Sterling Investor Presentation 24
Slide 25: Sterling Investor Presentation
Sterling Investor Presentation 25
Slide 26: ESG at Sterling: The Sterling Way
ESG at Sterling: The Sterling Way Our Core Values: Safety, Respect and Trust, Excellence, Integrity 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 prov
Slide 27: 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.
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