Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sidoti Micro-Cap Conference 2023
15 slides from Sterling Infrastructure's conference presentation, May 11, 2023
Slide 1: Sidoti Micro-Cap Conference
SIDOTI MICRO-CAP CONFERENCE May 11, 2023 We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow.
Slide 2: Disclosure: Forward-Looking Statements
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 Securities Exchange Act of 1934. These forw
Slide 3: WHO is Sterling?
WHO is Sterling? A market-leading infrastructure service provider of e-infrastructure, building and transportation solutions. A story of successful execution of multi-year strategic business transformation; born of a vision that levers our entrepreneurial spirit. We offer a customer-centric, market-
Slide 4: Strategic Execution | Proven Results | Strong Growth
Strategic Execution | Proven Results | Strong Growth Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance Sterling | STRL: First Quarter 2023 4
Slide 5: First Quarter 2023 Results
+ First Quarter 2023 Results Sterling | STRL: First Quarter 2023 5
Slide 6: First Quarter 2023 Results Highlights
First Quarter 2023 Results Highlights Continuing Operations + Revenues: $403.6 million + Net Income: $19.6 million + Diluted EPS: $0.64 + EBITDA(1): $45.9 million + Cash Flow from Operations: $49.1 million + Cash & Cash Equivalents(2): $202.6 million + Backlog(2): $1.62 billion with 14.8% margin + C
Slide 7: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results Continuing Operations ($ in millions) Q1 2023 Q1 2022 ($ in millions) Q1 2023 Q1 2022 Revenues $ 403.6 $ 366.0 E-Infrastructure Solutions Gross Profit 61.7 55.1 Revenue $ 205.8 $ 168.9 G&A Expense (23.3) (20.3) Operating Income $ 24.3 $ 21.3 Intangible Amor
Slide 8: Increased EBITDA and Cash Flow Drives Liquidity Strategy
Increased EBITDA and Cash Flow Drives Liquidity Strategy Sterling is comfortable with a forward looking debt/ Foward Looking EBITDA Debt EBITDA coverage ratio of +/-2.5X. Coverage Ratio 2 1.9 5-Year Credit Facility 1.5 1.7 $393M Term Loan Borrowings 1 $75M Revolving Credit Facility (Undrawn) 0.5 Key
Slide 9: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com The Equity Group Inc. Jeremy Hellman Tel: (212) 836-9626 jhellman@equityny.com Sterling | STRL: First Quarter 2023 9
Slide 10: Appendix
+ Appendix Sterling | STRL: First Quarter 2023 10
Slide 11: 2023 Modeling Considerations
(1) 2023 Modeling Considerations Revenue $1,900 to $2,000 Gross Margin 15% to 16% G&A Expense as % of Revenue (Excluding ~5% Intangible Amortization) Intangible Amortization $15 Other Operating Expense Net $12 to $13 JV Non-Controlling Interest Expense $2 to $3 Effective Income Tax Rate 28% to 29% N
Slide 12: 2023 Modeling Considerations Continued
2023 Modeling Considerations Continued* Non-Cash Items FY 2023 Expectations FY 2022 Depreciation $40 to $44 $38.0 Intangible Amortization $15 $14.1 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $12 to $14 $10.3 Deferred Taxes $17 to $18 $36.5 Other Cash Flow Items FY 2023 Ex
Slide 13: EBITDA from Continuing Operations Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA FROM CONTINUING OPERATIONS RECONCILIATION (In thousands) (Unaudited) Three Months Ended March 31, 2023 2022 Net income from Continuing Operations $ 19,649 $ 17,672 Depreciation and amortization 13,692 11,363 Interest expense, net of interest income
Slide 14: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2023 Guidance Low High Net income attributable to Sterling common stockholders $ 104 $ 110 Depreciation and amortization 55 59 Interest expense, net of interest income 21 24 Income tax exp
Slide 15: 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.
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