Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — Q2 2021 Earnings Presentation
13 slides from Sterling Infrastructure's earnings presentation, Aug 2, 2021
Slide 1: Q2 2021 Earnings Call
Sterling Construction Company, Inc. Q2 2021 Earnings Call August 3, 2021
Slide 2: Disclosure: Forward-Looking Statements
Disclosure: Forward-Looking Statements ffi di the Company may meaning of Ff 1933 iti f 1934. i ji of inties, man of which are beyond our control, i yi ial ri inti i i pi ic, including th i covid i i i iti i iti et 19 pendent orto urther soba economy vend finaneal rnarkets our business strategy; our
Slide 3: Second Quarter 2021 Results
Second Quarter 2021 Results Strong management and effective execution of strategic focus delivered another solid quarter despite significant headwinds plaguing the market e Revenues: $401.7 million e Net Income: $20.1 million ¢ Diluted EPS: $0.69 ¢ Combined Backlog was $1.65 billion with a record 12
Slide 4: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights e Strong bottom-line results from all sectors * Heavy Civil * Strong results from continued shift away from low-bid to alternative delivery, aviation and rail projects * Alternative delivery project volumes were up * 81% of revenue came from work outside of low-bid hea
Slide 5: Backlog Growth And Margin Improvement
Backlog Growth And Margin Improvement June 30, 2021 December 31, 2020 Book to Burn Amount Margin % Amount Margin% In 2021 Backlog $1,571 million 12.4% $1,175 million 12.0% 1.63X Combined Backlog $1,646 million 12.2% $1,532 million 11.8% 1.18X e Backlog reaches $1.57 billion, up 34% from the end of 2
Slide 6: Consolidated and Segment Results
Consolidated and Segment Results (SMM) Q2 2021 Q2 2020 (SMM) Q2 2021 Q2 2020 Revenues $401.7 $400.0 Gross Margin 14.0% 14.9% Revenue $220.4 Operating Income $3.9 Operating Income $32.7 $33.0 Opemtneivaren 2.2% 1.8% Net Income to STRL $20.1 $18.2 Specialty Services Diluted EPS $0.69 $0.65 Revenue 151
Slide 7: Increased EBITDA and Cash Flow Drives De-levering Strategy
Increased EBITDA and Cash Flow Drives De-levering Strategy 1 Looki ik i Five Year Credit Facility (the "Facility") *¢ — §400M Term Loan Facility ° 575M Revolving Credit Facility 3.5X 35 . 1 3 . Facility originally structured to reduce total funded debt EBITDA 25 2.3K 2 Key Cash Flow Considerations .
Slide 8: Contact Us
Contact Us Investor Relations Advisors Company Representative The Equity Group Inc. Sterling Construction Company, Inc. Ron Ballschmiede Fred Buonocore, CFA Chief Financial Officer Senior Vice President 281-214-0800 212-836-9607 fbuonocore@equityny.com Mike Gaudreau Associate 212-836-9620 mg@equityn
Slide 9: Appendix
Appendix
Slide 10: Strategy Driving Profitable Growth
Strategy Driving Profitable Growth Revenue (M) $1,600 400% $1,400 350% $1,200 300% $1,000 250% $800 a 150% $600 100% $400 50% $200 0% $0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 20226 —Gross Profit Growth ——Revenue Growth i i i Adjusted EBITDA (M) $1,800 13.0% 3% 140 $1,600 eg 33. ums
Slide 11: Modeling Considerations
Modeling Considerations* Gross Margin ~14% Other Operating Expense Net $12 to $14 Effective Income Tax Rate 29.5% to 30% Diluted EPS $1.90 to $2.00 EBITDA $134 to $144 *In millions except for diluted EPS Sterling 11 Construction Company, Inc.
Slide 12: Modeling Considerations (Continued)
Modeling Considerations (Continued) (sum) NON-CASH ITEMS FY 2021 Expectations FY 2020 Depreciation $21 to $23 $21.3 Intangible Amortization $11 to $12 $11.4 $2 to $3 $3.2 Stock-based Compensation $7 to $9 $11.6 Income Tax Expense (Federal) 25% of Pretax Income $19.3 OTHER ITEMS FY 2021 Expectations
Slide 13: EBITDA Reconciliation
INC. EBITDA RECONCILIATION (In thousands) (Unaudited) June 30. 2021 2020 2021 2020 Net i ibutabl ling ‘khold $ 20,056 $ 18,210 $ 30,611 $ 21,325 Depreciation and amortization 8,402 8,256 16,707 16,541 f i i 5,725 7,533 1 Bd 3 15,237 Income tax expense 8,179 7,248 12,939 8,432 Gai inguish f debt, net
Sterling Construction — Q2 2021 Earnings Presentation on 6ix