Centuri Holdings, Inc. · NYSE:CTRI
Centuri — Q3 2024 Earnings Presentation
22 slides from Centuri's earnings presentation, Nov 6, 2024
Slide 1: 3Q 2024 Earnings Presentation
3Q 2024 Earnings Presentation November 6, 2024 Centuri.com 1
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer Unless the context otherwise requires, in this presentation, references to “we,” “us,” and “our” are to Centuri Holdings, Inc. (NYSE: CTRI) (“Centuri” or the “Company”), together with its consolidated subsidiaries, which include, among others, Centuri Group, Inc
Slide 3: Company Overview
Company Overview Geographic Footprint Representative Utility Customers Operating Footprint Gas Locations (49 Locations) Electric Locations (36 Locations) Other (3 Locations) Business Mix (1) Revenue by Segment(1) Notes: 1. Based on fiscal nine months ended September 29, 2024 3 2. Includes clean ener
Slide 4: Investment Highlights
Investment Highlights Who We Are Compelling Investment Drivers » 110+ years of operating history and a track record of delivering world-class safety and quality performance A leading pure-play » Scaled platform with extensive North American footprint translates to a North American utility leading ma
Slide 5: Diversified & Ample Growth Opportunities Ahead
Diversified & Ample Growth Opportunities Ahead Long-standing MSA Adapt to evolving customer spending patterns, diversifying, and strengthening each relationship Customers » Maintain understanding of existing partners’ strategies and changing goals & grow with them as needs change New Utility & Empow
Slide 6: 3Q 2024 Results Overview
3Q 2024 Results Overview Notable Key Financial Items » Strongest quarter in storm restoration services since 2021 • $22.5 million increase year over year $720 $41 » Offshore wind timing reduced revenues by $38.0 million Revenue Storm Restoration » 1H24 cost savings initiatives implemented (MM) Servi
Slide 7: Cost Savings Initiatives Well Underway
Cost Savings Initiatives Well Underway Fleet ~$12 » Capital | ~$10 million in plan reduction from historic norms based on quantitative look at asset usage, age and cost » Expense| ~$2 million in identified annualized savings from reduced maintenance million expense in service, tires and parts catego
Slide 8: Commercial & Business Momentum Remain Strong
Commercial & Business Momentum Remain Strong Customer Awards in Q3 Restoration Services MSA & Bid Highlights 3Q 2024 & YTD 3Q $206MM » Multi-year award from new U.S. Gas MSAs $41MM 2,930 27 customer in Appalachia $87MM • Estimated revenue of ≥$60 million Revenue earned Revenue earned Employees State
Slide 9: 3Q 2023 vs. 2024
3Q | 2023 vs. 2024 ($MM, except per share amounts) 3Q 2024 3Q 2023 GAAP Metrics Revenue $ 720.1 $ 774.9 Net (Loss) Income Attributable to Common Stock $ (3.7) $ 16.2 Diluted (Loss) Earnings Per Share $ (0.04) $ 0.23 Non-GAAP Metrics(1) Adjusted EBITDA $ 78.8 $ 91.5 Adjusted Net Income $ 5.3 $ 23.6 A
Slide 10: 3Q2023 vs. 3Q2024 Key Differences
3Q | 3Q2023 vs. 3Q2024 Key Differences Revenue ($ in millions) Year-over-year drivers include: favorable impact unfavorable impact Revenues § ~$55 million - Total decrease • $47 million – Lower volumes with certain MSA customers • $38 million - Decreased offshore wind revenue • $23 million – Increas
Slide 11: Revenue & Gross Profit By Segment 3Q2023 – 3Q2024
Revenue & Gross Profit By Segment1 3Q2023 – 3Q2024 Notes: 1. Chart reflects information for our four reportable segments. Other revenues were $3 million and $10 million for 3Q2024 and 3Q2023, respectively and other gross (loss)/profit were $(1) million and $1 million for 3Q2024 and 3Q2023, 11 respec
Slide 12: Free Cash Flow (FCF) and Leverage Overview
Free Cash Flow (FCF) and Leverage Overview FCF(1) & FCF Conversion(1) Net Debt ($MM)(1) Net Debt to Adj. EBITDA(2) Ratio (1) Notes: 1. These are non-GAAP measures and as such, may not be comparable to a similarly titled measure of other companies. Please refer to the appendix to this presentation fo
Slide 13: 2024 Outlook
2024 Outlook FY 2024 FY 2024 Adj. Net Capex Revenue (MM) EBITDA margin(1) (MM)(2) $2,500 – $2,700 9.0% – 9.6% $90-$99 Notes: (1) This is a non-GAAP measure and as such, may not be comparable to a similarly titled measure of other companies. Please refer to the appendix to this presentation for the d
Slide 14: Strong Secular Tailwinds Underpinning Growth
Strong Secular Tailwinds Underpinning Growth Electric Utility Services Gas Utility Services $168bn(1) 40+ Years(4) Public Investor-Owned U.S. Electric Sustainability / ESG Aging Utility Infrastructure Average Age of U.S. Gas Distribution Utility 2023E Capex Pipelines ~409k / 50+ Years(4)(5) 50+ Year
Slide 15: Appendix
Appendix THINK AHEAD »
Slide 16: Use of Non-GAAP Measures
Use of Non-GAAP Measures We prepare and present our financial statements in accordance with GAAP. However, management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt to Adjusted EBITDA ratio, Free Cash Flow, Free Cash Flow Conversion, Adjusted Net Income, and Adjusted Diluted
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $mm 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Net (loss) income $ (165.9) $ (7.1) $ 18.5 $ 16.9 $ (212.8) $ (25.2) $ 11.7 $ (3.6) Net interest deductions 21.0 22.4 24.5 26.1 24.4 24.1 22.6 23.9 Income tax expense (benefit) 0.7 (4.2) 11.0 10.0 (7.3) (20.8)
Slide 18: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $mm 3Q2022 3Q2023 3Q2024 Net income (loss) $ 12.9 $ 16.9 $ (3.6) Net interest deductions 16.6 26.1 23.9 Income tax expense 8.9 10.0 21.8 Depreciation expense 32.4 29.6 26.5 Amortization of intangible assets 7.4 6.7 6.7 EBITDA $ 78.2 $ 89.3 $ 75.3 Non-cash share-based co
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation $mm 3Q2023 3Q2024 Debt Current portion of long-term debt $ 42.3 $ 30.3 Current portion of finance lease liabilities 11.7 10.1 Long-term debt, net of current portion 1,041.0 762.1 Line of credit 143.9 116.4 Finance lease liabilities, net of current portion 26.9 17.1 Total Debt
Slide 20: Adjusted Net Income
Adjusted Net Income $mm 3Q2023 3Q2024 Net income $ 16.9 $ (3.6) Strategic review costs 0.5 — Severance costs 0.3 0.5 Amortization of intangible assets 6.7 6.7 Securitization transaction fees — 1.4 CEO transition costs — 0.2 Loss on debt extinguishment — 1.7 Non-cash stock-based compensation 1.3 1.3
Slide 21: Adjusted Earnings Per Share
Adjusted Earnings Per Share 3Q2023 3Q2024 Diluted earnings per share attributable to common stock (GAAP as reported) $ 0.23 $ (0.04) Add-back income attributable to noncontrolling interests 0.01 — Strategic review costs 0.01 — Severance costs — 0.01 Securitization transaction fees — 0.02 Loss on deb
Slide 22: Centuri contact details
19820 North 7th Avenue, #120 • Phoenix, Arizona 85027 • investors@centuri.com Centuri.com 22