Slide 1: Third Quarter 2023 Earnings
Third Quarter 2023 Earnings December 2023 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 We rank as a top 10 water solutions provider(2). With a dedicated team $1.2B of 1,500+ skilled employees(3), we have built a strong team, reputation Backlog(3) and competitive position. Vertically Integrated We are vertically integrated and self-perform 80% of
Slide 4: Third Quarter Highlights
Third Quarter Highlights Net Adjusted Adjusted Revenue(1) Income Net Income(2) EBITDA(2) • Revenue of $175 million and expanded gross margin by 260 basis points In millions In millions In millions In millions $35 $37 $42 • Net Income grew approximately 96% to $35 $184 million $175 • Adjusted Net Inc
Slide 5: 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 6: 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 6
Slide 7: Selected Project Highlights
Selected Project Highlights LEWISVILLE DAM SAFETY MODIFICATIONS Aging Infrastructure KEY PROJECT STATISTICS (AS OF SEPTEMBER 29, 2023) Shimmick Solution Status Shimmick is making major repairs to the aging Project is progressing as planned. This project is Lewisville Dam and spillway outside of Dall
Slide 8: 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 9: Q3'23 Financial Results Summary
Q3’23 Financial Results Summary Revenue Gross Margin Net Income $175M $17M $35M Observations 10% of revenue Ramp up of new water & wastewater treatment projects drive strong top- Adjusted Net Income(1) Adjusted EBITDA(1) line results $37M $42M Adjusted EBITDA margin expansion 21% of revenue 24% of r
Slide 10: Transitioning to a Higher Margin Water-focused Portfolio
Transitioning to a Higher Margin Water-focused Portfolio Margin Improvement to Ensue on a Positive Mix Legacy Portfolio Transitional Portfolio The New Shimmick December 2021(1) September 2023(1) 3-5 Yrs. (1) Unencumbered by suboptimal legacy projects, Inconsistent project size, focus, and duration N
Slide 11: Components of September 2023 Backlog
Components of September 2023 Backlog(1) Our Backlog is Entirely USA, Predominantly Publicly Funded and Fixed Priced Customer Type Contract Type Backlog Conversion 12% 13% • Over 75% of the backlog expected 14% to be completed in the next 24 months • Legacy project backlog continues to wind down 74%
Slide 12: Highlights
Highlights Water Solutions Leader 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 12
Slide 13: Investor Contact
Investor Contact IR@shimmick.com 1-949-704-2350 investors.shimmick.com
Slide 14: Appendix
Appendix MAKE IT HAPPEN
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) Three Months Ended Nine Months Ended September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022 Net Income Net income attributable to Shimmick Corporation 34,567 17,966 14,930 21,676 Changes in fair value of contingent consideration (33
Slide 16: Non-GAAP Financial Measures Explanatory Notes
Non-GAAP Financial Measures Explanatory Notes Adjusted Net Income Adjusted net income represents net income attributable to Shimmick Corporation adjusted to eliminate changes in fair value of contingent consideration, IPO and transaction-related costs, stock-based compensation, and legal fees and ot
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet(1) September 29, December 30, (in thousands) 2023 2022 Assets Cash and Cash Equivalents 61,862 77,762 Total Current Assets 270,690 233,476 Total Assets 457,134 446,799 Liabilities Total Current Liabilities 297,211 340,944 Total Liabilities 388,751 395,204 Equity Total Stockho
Slide 18: Shimmick Primary Activities
Shimmick Primary Activities Repeatable Process Leads to More Predictable Results Safety Core Competencies Investment in Human Capital Project Controls Primary Design Selective Underwriting Project Public Project Activities and Engineering Bidding Risk Execution Ownership Currently, Shimmick Utilizin
Slide 19: Select Long Standing Customer Relationships
Select Long Standing Orange County City and County of Metropolitan Water District of County of Los Customer Water District San Francisco Southern California Angeles Relationships Orange County Sanitation District Our resume leads to repeat business with significant players across water infrastructur
Slide 20: Select Case Studies
Select Case Studies Water Treatment Water Risk Mitigation Orange County Foster City • Driver: Population Growth • Driver: Climate Change/Rising Sea Levels • Three-step advanced process consisting of microfiltration, • Over six miles of flood protection to address projected sea- reverse osmosis and u