Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — Q1 2021 Earnings Presentation
13 slides from Sterling Infrastructure's earnings presentation, May 3, 2021
Slide 1: Q1 2021 Earnings Call
Sterling Construction Company, Inc. Q1 2021 Earnings Call May 4, 2021
Slide 2: Disclosure: Forward-Looking Statements
Disclosure: Forward-Looking Statements ji i inti f whi control, whi y i i including the distribution, ifetiveness and acceptance of vaccines, and the potential ongoing or further negative impact of the COVID-19 pandemic on the glol my and financial markets; our business strategy; our financial strat
Slide 3: First Quarter 2021 Highlights
First Quarter 2021 Highlights e Residential slabs poured are up 29% over 2020, with a record number of slabs poured in the quarter. ¢ 82% of revenue came from work outside of low-bid heavy highway. ¢ Net income is more than triple the same period of 2020. ¢ Combined Backlog was $1.71 billion at Marc
Slide 4: First Quarter 2021 Results
First Quarter 2021 Results e Revenues increased 6.3% or $18.6 million from Q1 2020. e Gross margin was 14.3%, which was a 240 basis point increase from Q1 2020. e¢ Operating income increased 88% or $10.7 million from Q1 2020. e EBITDA was $29.9 million at Q1 2021, a 48% increase from Q1 2020. Sterli
Slide 5: Backlog Growth And Margin Improvement
Backlog Growth And Margin Improvement March 31, 2021 December 31, 2020 Book to Burn Amount Margin % Amount Margin% In 2021 Backlog $1,639 million 11.8% $1,175 million 12.0% 2.71X Combined Backlog $1,715 million 11.7% $1,532 million 11.8% 1.67X ¢ Backlog reaches $1.64 billion, up 39% from the end of
Slide 6: Consolidated and Segment Results
Consolidated and Segment Results (SMM) Qi 2021 Q1 2020 (SMM) Q1 2021 Q1 2020 Revenues $315.3 $296.7 Gross Margin 14.3% 11.9% Revenue SHER Operating Income $(3.6) Operating Income $22.8 $12.1 Opemtneivaren 0.7% (2.3)% Net Income to STRL $10.6 $3.1 Specialty Diluted EPS $0.37 $0.11 Revenue $124.1 $104
Slide 7: Increased EBITDA and Cash Flow Drives De-levering Strategy
Increased EBITDA and Cash Flow Drives De-levering Strategy Deleveraging Goal Pro Forma Q3 2019 3/31/2020 12/31/2021 Five ( Facility") $400M Term Loan Facility $75M Revolving Credit Facility yp Facility originally structured to reduce total funded debt EBITDA ee 1 dof y Key Cash Flow Considerations C
Slide 8: Contact Us
Contact Us Investor Relations Advisors Company Representative The Equity Group Inc. Sterling Construction Company, Inc. Ron Ballschmiede Fred Buonocore, CFA Chief Financial Officer Senior Vice President 281-214-0777 212-836-9607 fbuonocore@equityny.com Mike Gaudreau Associate 212-836-9620 mg@equityn
Slide 9: Appendix
Appendix
Slide 10: Strategy Driving Profitable Growth
Strategy Driving Profitable Growth Revenue (M) $1,600 400% $1,400 350% $1,200 300% $1,000 250% $800 a 150% $600 100% $400 50% $200 0% $0 2016 2017 2018 2019 2020 2021E 2016 2017 2018 2019 2020 2021E ——Gross Profit Growth ——=-Revenue Growth Record Combined Backlog with Improving Margins Adjusted EBIT
Slide 11: Modeling Considerations
Modeling Considerations* Gross Margin ~14% Diluted EPS $1.78 to $1.88 EBITDA $134 to $144 *In millions except for diluted EPS Sterling 11 Construction Company, Inc.
Slide 12: Modeling Considerations (Continued)
Modeling Considerations (Continued) (sum) NON-CASH ITEMS FY 2021 Expectations FY 2020 Depreciation $21 to $23 $21.3 Intangible Amortization $11 to $12 $11.4 $3 to $4 $3.2 Stock-based Compensation $7 to $9 $11.6 Income Tax Expense (Federal) 24% of Pretax Income $19.3 OTHER ITEMS FY 2021 Expectations
Slide 13: EBITDA Reconciliation
STERLING nN COMPANY, INC. & SUBSIDIARIES Net 7 “1 tab], Sterl; khold, Tat tho (Un: D Joti d Interest expense, net of interest income Income tax expense Loss on extinguishment of debt A) Reconettiatio n audited) Three Months Ended March 31, 2021 2020 $ 10,555 $ 3,115 8,305 8,285 5,990 7,704 4,760 1,1
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