Slide 1: Q3 2023 Earnings Call
We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. Q3 2023 Earnings Call November 7, 2023
Slide 2: Disclosure: Forward-Looking Statements
2Sterling | STRL: Third Quarter 2023 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 Securi
Slide 3: WHO is Sterling?
E-Infrastructure Solutions + Fastest growing segment in revenue growth + Provides value-added solutions to blue-chip customers in all major East Coast markets + Develops advanced, large-scale site development services for manufacturing, data centers, e-commerce distribution centers, warehousing, pow
Slide 4: Strategic Transformation at a Glance
Sterling | STRL: Third Quarter 2023 4 Strategic Transformation at a Glance
Slide 5: Third Quarter 2023 Results
+ Third Quarter 2023 Results Sterling | STRL: Third Quarter 2023 5
Slide 6: Third Quarter 2023 Results Highlights
Third Quarter 2023 Results Highlights Continuing Operations + Revenues: $560.3 million + Net Income: $39.4 million + Diluted EPS: $1.26 + EBITDA(1): $71.2 million + Cash Flow from Operations(2): $331.2 million + Cash & Cash Equivalents(3): $409.4 million + Backlog(3): $2.01 billion with 15.2% margin
Slide 7: Quarterly Consolidated and Segment Results
Sterling | STRL: Third Quarter 2023 7 Quarterly Consolidated and Segment Results Continuing Operations ($ in millions) Q3 2023 Q3 2022 Revenues $ 560.3 $ 493.0 Gross Profit 91.9 79.4 G&A Expense (25.2) (22.2) Intangible Amortization (3.7) (3.5) Acquisition Related Costs (0.1) (0.1) Other Operating E
Slide 8: Remaining Performance Obligations (RPOs)
Sterling | STRL: Third Quarter 2023 8 Remaining Performance Obligations (RPOs)(1) Continuing Operations ($ in millions) 9/30/2023 12/31/2022 9/30/2022 E-Infrastructure Solutions RPOs $ 891.4 $ 603.2 $ 584.3 Transportation Solutions RPOs 1,022.9 713.2 711.5 Building Solutions RPOs - Commercial 96.1 9
Slide 9: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Sterling | STRL: Third Quarter 2023 9 Increased EBITDA and Cash Flow Drives Liquidity Strategy Foward Looking EBITDA Debt Coverage Ratio 1.9X 1.3X 12/31/22 9/30/23 0.0X 0.5X 1.0X 1.5X 2.0X We expect to pursue strategic uses of our liquidity, such as strategic acquisitions, investing in capital equip
Slide 10: Contact Us
Sterling | STRL: Third Quarter 2023 10 Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com
Slide 11: Appendix
+ Appendix Sterling | STRL: Third Quarter 2023 11
Slide 12: 2023 Modeling Considerations
Sterling | STRL: Third Quarter 2023 12 2023 Modeling Considerations(1) (1) In millions except for EPS and percentages. (2) See EBITDA guidance reconciliation on page 15. Revenue $1,990 to $2,050 Gross Margin 16% to 17% G&A Expense as % of Revenue (Excluding Intangible Amortization) ~5% Intangible Am
Slide 13: 2023 Modeling Considerations Continued
2023 Modeling Considerations Continued* Sterling | STRL: Third Quarter 2023 13 * In Millions. Non-Cash Items FY 2023 Expectations FY 2022 Depreciation $42 to $43 $38.0 Intangible Amortization $15 $14.1 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $14 to $16 $10.3 Deferred T
Slide 14: EBITDA From Continuing Operations Reconciliation
Sterling | STRL: Third Quarter 2023 14 (1) The Company defines EBITDA as GAAP net income from Continuing Operations, adjusted for depreciation and amortization, net interest expense and taxes. (2) The Company defines Adjusted EBITDA as EBITDA excluding the impact of acquisition related costs. Three
Slide 15: EBITDA Guidance Reconciliation
Sterling | STRL: Third Quarter 2023 15 (1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense and taxes. Full Year 2023 Guidance Low High Net income attributable to Sterling common stockholders
Slide 16: 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.