Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — Q1 2020 Earnings Presentation
16 slides from Sterling Infrastructure's earnings presentation, May 5, 2020
Slide 1: Q1'20 Earnings Call
Sterling Construction Company, Inc. Q1’20 Earnings Call May, 5 2020
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 forwa
Slide 3: First Quarter 2020 Highlights
First Quarter 2020 Highlights = All of our businesses deemed “Essential Critical Infrastructure’. = Minimal impact from COVID-19 in Q1’20. = Our Strategy continues to produce results and reduce risk. = We continue to serve all our customers. = Record EBITDA and strong Free Cash Flow. () Per the Nati
Slide 4: COVID-19 Related Precautionary Measures
COVID-19 Related Precautionary Measures We have implemented precautionary measures to ensure the continuity of our business. It is worth noting that, at this point, we have had no material impact on job sites due to COVID-19. Employee Safety Measures: * Company wide social distancing « Where practic
Slide 5: First Quarter 2020 Results
First Quarter 2020 Results = Revenues increased to $296.7 million from $223.9 million in Q1’19, primarily attributable to the inclusion of three months of revenue from Plateau operations in the first quarter of 2020. = Gross margin increased 320 basis points to 11.9% from 8.7% in Q1’19. = Adjusted E
Slide 6: COVID-19 End Market Impact
COVID-19 End Market Impact HEAVY CIVIL CONSTRUCTION - 53% of Q1’20 Revenues Projects have continued as scheduled, though there are some productivity hits resulting from enhanced safety measures. Additionally, the bid pa ‘ environment for some city and county projects in the highway sector have been
Slide 7: Q1 2020 Income Statement
Q1 2020 Income Statement m= Q1 2020 revenue and gross margin increased primarily due to the inclusion of a full quarter results from Plateau. Heavy Civil results reflected typical seasonality and both margin and revenue should improve as we begin to ramp up our sizable joint venture projects. Reside
Slide 8: Segment Results
Segment Results (sm) 1.2020 Q1.2019 m= Our Heavy Civil segment revenues were largely flat year over year, but should improve as we begin to ramp up our sizable Revenue $155.6 $150.5 joint venture projects starting in Q2. Operating profit declined slightly as a result of typical first quarter seasona
Slide 9: Modeling Considerations - Cash Flow
Modeling Considerations - Cash Flow (SMM) a Depreciation $22 to $24 $15.9 Intangible Amortization $2.8 $0.6 $11 to $12 $4.8 Debt Issuance Cost Amortization $1.0 $0.8 $4.0 $3.4 Stock-based Compensation $2.2 $1.0 $8 to $9 $3.8 Federal Income Taxes $0.9 Nil 21% of Pretax Income Nil Interest Expense, in
Slide 10: Backlog Growth And Margin Improvement
Backlog Growth And Margin Improvement [__Bhtebee | Wisiearoe Book to Bur [aren | cons [eras treme | oe Backlog $1,190 million 12.7% $1,068 million 11.5% 1.47X Combined Backlog $1,432 million 12.1% $1,342 million 11.0% 1.35X = Backlog reaches record $1.2 billion, including record Plateau backlog. = C
Slide 11: Looking Forward Business Fundamentals Remain Strong
Looking Forward Business Fundamentals Remain Strong Despite Headwinds = Record Backlog and margin in Backlog at quarter end. = Solid liquidity position that continues to strengthen throughout the remainder of the year. = A resilient team that has shown the ability to adjust quickly in a rapid changi
Slide 12: Contact Us
Contact Us Company Representative Sterling Construction Company, Inc. Investor Relations Advisors The Equity Group Inc. Ron Ballschmiede Chief Financial Officer 281-214-0777 12 Fred Buonocore, CFA Senior Vice President 212-836-9607 fbuonocore@equityny.com Mike Gaudreau Associate 212-836-9620 mg@equi
Slide 13: Appendix
Appendix Sterling 13 Construction Company, Inc.
Slide 14: Condensed Consolidated Statements of Operations - Non-GAAP Reconciliation
STERLING CONSTRUCTION COMPANY, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Reconciliation of Non-GAAP Supplemental Adjusted Financial Data® dn thousands, except per share data) (Unaudited) The Company ‘its financial results in accordance with GAAP. Ma ionbirs apie et op mech
Slide 15: Condensed Consolidated Statements of Operations - Non-GAAP Reconciliation
STERLING CONSTRUCTION COMPANY, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Reconciliation of Non-GAAP Supplemental Adjusted Financial Data (In thousands, except per share data) (Unaudited) The Company: ‘its financial results in accordance with GAAP. This press release also in
Slide 16: EBITDA Reconciliation
STERLING CONSTRUCTION COMPANY, INC. & SUBSIDIARIES EBITDA Reconciliation (In thousands) (Unaudited) Three Months Ended March 31, 19 Net income attributable to Sterling common stockholders 3,115 $ 1,815 Depreciation 3,702 Amortization 600 Interest expense. net of interest income 2.696 Income tax (ben
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