Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q4 2023 Earnings Presentation
18 slides from Sterling Infrastructure's earnings presentation, Feb 27, 2024
Slide 1: Q4 2023 Earnings Call
Q4 2023 Earnings Call February 27, 2024 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 a multi-year strategic business transformation; born of a vision that levers our entrepreneurial spirit. We offer a customer-centric, marke
Slide 4: Strategic Transformation at a Glance
Strategic Transformation at a Glance Sterling | STRL: Fourth Quarter 2023 4
Slide 5: Fourth Quarter 2023 Results
+ Fourth Quarter 2023 Results Sterling | STRL: Fourth Quarter 2023 5
Slide 6: Fourth Quarter and Full Year 2023 Results Highlights
Fourth Quarter and Full Year 2023 Results Highlights Continuing Operations + Revenues: $486.0 million and $1,972.2 million, respectively + Net Income: $40.2 million and $138.7 million, respectively + Diluted EPS: $1.28 and $4.44, respectively + EBITDA(1): $68.4 million and $259.0 million, respective
Slide 7: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results Continuing Operations ($ in millions) Q4 2023 Q4 2022 ($ in millions) Q4 2023 Q4 2022 Revenues $ 486.0 $ 448.6 E-Infrastructure Solutions Gross Profit 91.8 69.0 Revenue $ 217.5 $ 247.3 G&A Expense (26.1) (23.1) Operating Income $ 37.6 $ 29.8 Intangible Amor
Slide 8: Full Year Consolidated and Segment Results
Full Year Consolidated and Segment Results Continuing Operations ($ in millions) 2023 2022 ($ in millions) 2023 2022 Revenues $ 1,972.2 $ 1,769.4 E-Infrastructure Solutions Gross Profit 337.6 274.6 Revenue $ 937.4 $ 905.3 G&A Expense (98.7) (86.5) Operating Income $ 141.0 $ 121.5 Intangible Amortiza
Slide 9: Remaining Performance Obligations (RPOs)
(1) Remaining Performance Obligations (RPOs) Continuing Operations ($ in millions) 12/31/2023 12/31/2022 E-Infrastructure Solutions RPOs $ 813.7 $ 603.2 Transportation Solutions RPOs 1,184.5 713.2 Building Solutions RPOs - Commercial 68.8 97.9 Total RPOs $ 2,067.0 $ 1,414.3 (1) Our remaining perform
Slide 10: 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 Coverage Ratio EBITDA coverage ratio of +/-2.5X. 2.0X 1.9X 5-Year Credit Facility 1.5X $343M Term Loan Borrowings 1.0X 1.2X $75M Revolving Credit Facility (Undrawn
Slide 11: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com Sterling | STRL: Fourth Quarter 2023 11
Slide 12: Appendix
+ Appendix Sterling | STRL: Fourth Quarter 2023 12
Slide 13: 2024 Modeling Considerations
(1) 2024 Modeling Considerations Revenue $2,125 to $2,215 Gross Margin ~17.5% G&A Expense as % of Revenue (Excluding ~5% Intangible Amortization) Intangible Amortization $17 Other Operating Expense Net $17 to $19 JV Non-Controlling Interest Expense $7 to $8 Effective Income Tax Rate ~27% Net Income
Slide 14: 2024 Modeling Considerations Continued
2024 Modeling Considerations Continued* Non-Cash Items FY 2024 Expectations FY 2023 Depreciation $45 to $47 $42.2 Intangible Amortization $17 $15.2 Debt Issuance Cost Amortization $1 to $2 $2.0 Stock-based Compensation $14 to $16 $12.6 Deferred Taxes $15 to $17 $14.7 Other Cash Flow Items FY 2024 Ex
Slide 15: Adjusted Net Income from Continuing Operations Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES ADJUSTED NET INCOME FROM CONTINUING OPERATIONS RECONCILIATION (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Net income from Continuing Operations $ 40,173 $ 20,233 $ 138,655 $ 96,717 Acquis
Slide 16: EBITDA from Continuing Operations Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA FROM CONTINUING OPERATIONS RECONCILIATION (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Net income from Continuing Operations $ 40,173 $ 20,233 $ 138,655 $ 96,717 Depreciation and am
Slide 17: EBITDA Guidance Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited) Full Year 2024 Guidance Low High Net income attributable to Sterling common stockholders $ 155 $ 165 Depreciation and amortization 62 64 Interest expense, net of interest income 5 6 Income tax expen
Slide 18: 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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