Slide 1: Earnings Presentation Second Quarter 2024
Earnings Presentation Second Quarter 2024 August 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 $923 M 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-perfo
Slide 4: Second Quarter 2024 and Recent Highlights
Second Quarter 2024 and Recent Highlights • A settlement agreement on litigation on one of the two Legacy Loss Projects (a federal lock and dam project) which will result in $33 million in additional liquidity and eliminates the cost and distraction of prolonged litigation • Reported revenue of $91
Slide 5: Transformation Plan Update
Transformation Plan Update Given Shimmick’s track-record of winning and delivering complex water and other critical infrastructure projects in California, a market which has experienced consistent annual growth with forecasted increases in both the size and complexity of these target projects over t
Slide 6: Selected Project Highlights
Selected Project Highlights RICHMOND WWTP CRITICAL IMPROVEMENTS PROJECT KEY PROJECT STATISTICS (AS OF JULY 2024) Shimmick Solution Status The Richmond Wastewater Treatment Plant, which With the project now recently completed, these discharges into the San Francisco Bay, was identified improvements h
Slide 7: Second Quarter Revenue and Gross Margin Results
Second Quarter Revenue and Gross Margin Results ($ in millions) Observations Shimmick Project revenue decline was primarily driven by lower activity on existing jobs and jobs winding down The decline in Shimmick Projects gross margin was primarily driven by increased cost and schedule extensions. Th
Slide 8: Legacy Project Settlement and Sale of Tracy Equipment Yard
Legacy Project Settlement and Sale of Tracy Equipment Yard • Settled litigation of one of the two large Legacy Loss Projects for $33 million o Cash of $33 million expected to be collected in fiscal year 2024 o Avoids legal fees and distraction associated with several years of expected litigation o o
Slide 9: Shimmick Backlog Growth
Shimmick(1) Backlog Growth 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 fur
Slide 10: 2024 Guidance
2024 Guidance For the full fiscal year ending January 3, 2025, we expect, after excluding Foundations Projects revenue of $64 million for the fiscal year ending December 29, 2023: • Shimmick Projects revenue to remain generally flat with gross margin between 4 to 9 percent • Legacy Projects revenue
Slide 11: 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 11
Slide 12: Investor Contact
Investor Contact IR@shimmick.com 1-949-704-2350 investors.shimmick.com
Slide 13: Appendix
Appendix MAKE IT HAPPEN
Slide 14: 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 15: 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 16: 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 16
Slide 17: 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 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) Three Months Ended June 28, 2024 June 30, 2023 Net loss income attributable to Shimmick Corporation (51,389) (10,300) Transformation costs(1) 2,608 - Stock-based compensation 969 523 Legal fees and other costs for Legacy Projects(2) 2,629 2,128 Other(3)
Slide 19: 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, legal fees and other costs for Legacy Projects and other costs. We
Slide 20: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet June 28, December 29, (in thousands) 2024 2023 Assets Cash and Cash Equivalents 22,381 62,939 Total Current Assets 208,825 257,458 Total Assets 344,514 426,652 Liabilities Total Current Liabilities 265,979 271,253 Total Liabilities 344,078 356,162 Equity Total St