Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Q3 2023 Earnings Presentation
16 slides from Sterling Infrastructure's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call November 7, 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 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: Third Quarter 2023 4
Slide 5: Third Quarter 2023 Results
+ Third Quarter 2023 Results Sterling | STRL: Third Quarter 2023 5
Slide 6: Third Quarter 2023 Results Highlights
Third Quarter 2023 Results Highlights Continuing Operations + Revenues: $560.3 million + Net Income: $39.4 million + Diluted EPS: $1.26 + EBITDA(1): $71.2 million + Cash Flow from Operations(2): $331.2 million + Cash & Cash Equivalents(3): $409.4 million + Backlog(3): $2.01 billion with 15.2% margin
Slide 7: Quarterly Consolidated and Segment Results
Quarterly Consolidated and Segment Results Continuing Operations ($ in millions) Q3 2023 Q3 2022 ($ in millions) Q3 2023 Q3 2022 Revenues $ 560.3 $ 493.0 E-Infrastructure Solutions Gross Profit 91.9 79.4 Revenue $ 253.9 $ 255.5 G&A Expense (25.2) (22.2) Operating Income $ 35.9 $ 37.5 Intangible Amor
Slide 8: Remaining Performance Obligations (RPOs)
(1) Remaining Performance Obligations (RPOs) Continuing Operations ($ in millions) 9/30/2023 12/31/2022 9/30/2022 E-Infrastructure Solutions RPOs $ 891.4 $ 603.2 $ 584.3 Transportation Solutions RPOs 1,022.9 713.2 711.5 Building Solutions RPOs - Commercial 96.1 97.9 115.5 Total RPOs $ 2,010.4 $ 1,41
Slide 9: 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 $347M Term Loan Borrowings 1.0X 1.3X $75M Revolving Credit Facility (Undrawn
Slide 10: Contact Us
Contact Us Sterling Infrastructure, Inc. Noelle Dilts, VP IR and Corporate Strategy Tel: (281) 214-0795 noelle.dilts@strlco.com Sterling | STRL: Third Quarter 2023 10
Slide 11: Appendix
+ Appendix Sterling | STRL: Third Quarter 2023 11
Slide 12: 2023 Modeling Considerations
(1) 2023 Modeling Considerations Revenue $1,990 to $2,050 Gross Margin 16% to 17% G&A Expense as % of Revenue (Excluding ~5% Intangible Amortization) Intangible Amortization $15 Other Operating Expense Net $17 to $19 JV Non-Controlling Interest Expense $3 to $4 Effective Income Tax Rate ~27% Net Inc
Slide 13: 2023 Modeling Considerations Continued
2023 Modeling Considerations Continued* Non-Cash Items FY 2023 Expectations FY 2022 Depreciation $42 to $43 $38.0 Intangible Amortization $15 $14.1 Debt Issuance Cost Amortization $2 to $3 $2.2 Stock-based Compensation $14 to $16 $10.3 Deferred Taxes $15 to $17 $36.5 Other Cash Flow Items FY 2023 Ex
Slide 14: EBITDA from Continuing Operations Reconciliation
STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA FROM CONTINUING OPERATIONS RECONCILIATION (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income from Continuing Operations $ 39,353 $ 30,698 $ 98,482 $ 76,484 Depreciation and amo
Slide 15: 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 $ 128 $ 132 Depreciation and amortization 57 58 Interest expense, net of interest income 18 19 Income tax exp
Slide 16: 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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