Infrastructure and Energy Alternatives Inc
Infrastructure and Energy Alternatives — Q4 2019 Earnings Presentation
23 slides from Infrastructure and Energy Alternatives's earnings presentation, Mar 10, 2020
Slide 1: Fourth Quarter Earnings Presentation
Fourth Quarter Earnings Presentation March 10, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking statements can b
Slide 3: IEA Overview & Achievements
IEA OVERVIEW & ACHIEVEMENTS Fourth Quarter 2019 Earnings Presentation
Slide 4: Company Overview
Company Overview IEA (Nasdaq “IEA”) is a leading infrastructure construction company with specialized energy and heavy civil expertise. CUSTOMER MARKETS SELECT SERVICES & CAPABILITIES Renewable Energy • Consulting Services • Solar Technology Installation • Excavation & Site Preparation • Road, Bridg
Slide 5: 2019 Achievements
2019 Achievements Solid Financial Performance Liquidity Improvements Diversified Platform Expansion in our Current and Future End Markets Improved Operational Excellence
Slide 6: Solid Financial Performance
Solid Financial Performance Revenue Organic vs Acquisition Growth $2,000 $2,000 $1,460 $1,500 $1,500 $1,000 $673 $1,000 $779 Millions $603 $500 $455 $250 $787 $500 $205 $0 $205 $205 2015 2017 2019 $0 Base Business(1 Organic 2015 2016 2017 2018 2019 ) Revenue Growth $582 2015-2019 $673 Acquisition Or
Slide 7: Strong Backlog Visibility
Strong Backlog Visibility Key Takeaways Good visibility on 2020 revenues – backlog + Additional projects awarded in all segments Q4 revenue supports 2020 revenue guidance Seeing early returns on cross-selling strategy range(1) Historical Backlog (1) $2,500 $2,116 $2,171 $2,000 $1,500 $1,100 $1
Slide 8: Financial Results
Financial Results Fourth Quarter Highlights Revenue totaled $520.0 million, an increase of 89% year-over-year Net income of $11.0 million, consistent year-over- year Adjusted EBITDA(1) of $47.1 million, or 9.1% of revenues as compared to a loss of $18.8 million or (6.8)% of revenues, in the pr
Slide 9: Liquidity Improvements
Liquidity Improvements Series B-3 Series B-1 Series B-2 Series A 50% “Second” Initial Closing Rights Offering Exchange Commitment Up to 180 day from Closing Date May 20, 2019 August 30, 2019 November 14, 2019 Series B-3 initial March 4, 2020 closing 60% Ares / 50% Oaktree / Public Investor(s) Ares A
Slide 10: Improved Equity Capitalization
Improved Equity Capitalization December 31, 2019 2018 Debt Revolver - 46.5 1st Lien Term Loan 182.7 300.0 Finance Leases and Other Debt 68.7 68.9 Total Debt 251.4 415.4 Less: Cash (147.3) (71.3) Net Debt (1) 104.1 344.1 Equity Preferred Stock (Series A and B) 197.9 35.0 Public Equity (2) 65.9 181.4
Slide 11: Diversified Platform
Diversified Platform Overlap in labor, skills and equipment across the platform with the ability to pivot and deploy resources efficiently based on demand Wind and Solar (1) Heavy Civil and Environmental (1) Rail (1) 12% 31% 57% $ 834 million $ 451 million $ 174 million Market Leading National Provi
Slide 12: Significant Operational Leverage Across Segments
Significant Operational Leverage Across Segments Examples of Cross-Segment Collaboration: William Charles / IEA • William Charles personnel have been tasked with overseeing the risk management for overall IEA • William Charles legal personnel oversee requirements for the civil group, including contr
Slide 13: Significant Operational Leverage Across Segments
Significant Operational Leverage Across Segments Saiia / Ragnar Benson / White Construction • Delivered a joint presentation to NIPSCO regarding coal ash remediation projects Saiia / White Construction • Jointly responded to a Duke RFP for coal ash remediation projects in Indiana Saiia / IEAC • Join
Slide 14: Expansion in our Current and Future End Markets
Expansion in our Current and Future End Markets U.S. Construction Put-in-Place 2019E: $1,300 Billion Transport & Water, Sewage and Road 12% Waste 3% Power 7% Recreation 2% Residential Nonresidential 40% 36% Transport & Road $150.7B Power $97.6B Water, Sewage & Waste $43.3B Recreation $28.1B ($Billio
Slide 15: U.S. Construction Market Outlook
U.S. Construction Market Outlook Aging Infrastructure and Deferred Maintenance Spend is No Longer Discretionary and is a Significant Driver of Near and Long-term Construction Demand Bridges 2016 Pipes Act 9% Pipeline and of the nation’s ~615K Hazardous bridges materials safety are structurally spend
Slide 16: Improved Operational Excellence
Improved Operational Excellence In April 2019, Michael Stoecker was hired as the Chief Operating Officer, to implement systems and control mechanisms to efficiently manage our projects and ensure more predictable, reliable results and execution. Key examples of operational progress are listed below:
Slide 17: 2020 Financial Guidance and Strategy
2020 Financial Guidance and Strategy Fourth Quarter 2019 Earnings Presentation
Slide 18: 2020 Guidance
2020 Guidance ($ IN MILLIONS) LOW HIGH Key Takeaways Revenue $1,500.0 $1,650.0 Net Loss (6.0) (4.0) Management 2020 Guidance on Revenue: Interest Expense, Net 55.5 66.5 $1,500M - $1,650M of revenue Depreciation & Amortization 50.4 55.0 Benefit for Income Taxes (0.4) (1.0) $105M - $125M in Adjust
Slide 19: 2020 Strategy
2020 Strategy Retention of strong relationships with our customers for further diversification • Continue to build our strong, long-term relationships with each of our customers to meet their needs. • Leverage our established relationships to provide expanded products and services that will continue
Slide 20: Appendix
APPENDIX Fourth Quarter 2019 Earnings Presentation
Slide 21: Adjusted EBITDA
Adjusted EBITDA ($ in millions) 3 Months Ended 3 Months Ended Year Ended Year Ended 12.31.2019 12.31.2018 12.31.2019 12.31.2018 Net Income (loss) 11,053 10,985 6,231 4,244 Interest Expense 15,438 8,120 51,260 12,080 Tax Provision (benefit) 1,731 (11,475) (1,621) (12,942) Depreciation Expense 11,846
Slide 22: Footnotes to Adjusted EBITDA
Footnotes to Adjusted EBITDA 1) Diversification selling, general and administrative reflects the costs, including recruiting, compensation and benefits for additional personnel, associated with IEA beginning to expand into electrical transmission work and corresponding services, which were historica
Slide 23: Thank You - IR Contact
THANK YOU IR CONTACT Addo Investor Releations Kimberly Esterkin, Managing Director iea@addoir.com 310.829.5400
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