Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — Q4 and FY2021 Earnings Presentation
26 slides from Sterling Infrastructure's earnings presentation, Mar 1, 2022
Slide 1: 4th Quarter and Full Year Earnings Call
We build and service the infrastructure that enables our economy to run, our people to move and our country to grow. 4TH QUARTER AND FULL YEAR Earnings call March 1, 2022
Slide 2: Forward-looking statements
2S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 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 E
Slide 3: What's the Sterling Story?
Sterling returns value by accelerating through an improved business mix, targeted margin expansion within high-growth verticals, and increased exposure within complementary adjacent markets. 3S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 WHAT’S the Sterling Story? A story of
Slide 4: Why Sterling?
4S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 WHY Sterling? Strategic Elements: Solidify the Base | Grow High-Margin Products | Expansion into Adjacent Markets Key Objectives: Bottom-line Growth | Risk Reduction | Exceed Peer Performance Execution of our strategy Entrepr
Slide 5: Who is Sterling?
5S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 WHO is Sterling? Sterling offers a customer-centric, market-focused portfolio of goods and services geographically positioned in the right markets E-Infrastructure Solutions Develop advanced, large-scale site development systems
Slide 6: Transformational Evolution Continues Creating a Leading Infrastructure Service Provider
2015 Margins Transformational Evolution Continues Creating a Leading Infrastructure Service Provider 6 Strategic Execution | Proven Results | Strong Growth Heavy Civil Business Margins 9.3% 0 2 4 6 8 10 12 14 16 18 20 + Margins 6.1% Strategic Vision Introduced Next 5 years2015 2016 2017 2018 201
Slide 7: Strategic Vision Directs Next Growth Stage
7S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Strategic Vision Directs Next Growth Stage Solid Service Offerings Significant Growth Potential E-Infrastructure Solutions Develop advanced, large-scale site development systems and services • Highest margins in portfolio • Faste
Slide 8: E-Infrastructure Solutions Expansion
8S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 E-Infrastructure Solutions Expansion Expanding our geographic footprint into: New Jersey Maryland New York Pennsylvania STRL’s 2021 Footprint: Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina Tennessee V
Slide 9: Governance & Ethics
9S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 GOVERNANCE & ETHICS • Our commitment to an ethical culture starts at the highest level with oversight from our Board of Directors & Executive Leadership Team • Our Chief Compliance Officer leads the ethics and compliance activiti
Slide 10: Strategic Vision Delivers Another Record Fourth Quarter & Full Year 2021 Results
10S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Sterling’s Strategic Vision Delivers Another Record Fourth Quarter & Full Year 2021 Results Expand into Adjacent Markets • Programmatic acquisition strategy • New platforms in higher-margin, specialty end markets • Broadened por
Slide 11: Fourth quarter highlights
11S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1( 1 ) S e e A d j . N e t I n c o m e a n d A d j . D i l u t e d E P S R e c o n c i l i a t i o n o n p a g e 2 2 . Strong management and effective execution of strategic focus delivered another solid quarter despite significan
Slide 12: Quarterly Consolidated and Segment Results
12S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Quarterly Consolidated and Segment Results ( 1 ) S e e A d j . E B I T D A R e c o n c i l i a t i o n o n p a g e 2 6 . ($ in millions) Q4 2021 Q4 2020 Revenues $ 401.3 $ 347.2 Gross Profit 55.7 46.6 G&A Expense (25.9) (20.2) I
Slide 13: Full Year Consolidated and Segment Results
13S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Full Year Consolidated and Segment Results ( 1 ) S e e A d j . E B I T D A R e c o n c i l i a t i o n o n p a g e 2 6 . ($ in millions) 2021 2020 Revenues $ 1,581.8 $ 1,427.4 Gross Profit 214.8 191.4 G&A Expense (78.5) (71.4) I
Slide 14: Increased EBITDA and Cash Flow Drives Liquidity Strategy
14S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Increased EBITDA and Cash Flow Drives Liquidity Strategy We expect to pursue strategic uses of our liquidity, such as, strategic acquisitions, investing in capital equipment and managing leverage. Capital allocation focus • Long
Slide 15: Contact Us
15S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Sterling Ron Ballschmiede, Chief Financial Officer Mary Morley, Investor Relations Sterling Construction Company, Inc. Tel: (281) 214-0777 The Equity Group Inc. Jeremy Hellman Tel: (212) 836-9626 jhellman@equityny.com Contact Us
Slide 16: Appendix
16S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Appendix
Slide 17: Strategy Driving Profitable Growth
17S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Strategy Driving Profitable Growth
Slide 18: Realigned Quarterly Segments
18S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Realigned Quarterly Segments With the December 30, 2021 acquisition of Petillo, the Company realigned its operating groups to reflect management’s present oversight of operations. After realignment, the Company’s operations cons
Slide 19: Realigned Quarterly Segments (Continued)
19S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Realigned Quarterly Segments (Continued)
Slide 20: 2022 Modeling Considerations
20S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 2022 Modeling Considerations* * I n m i l l i o n s e x c e p t f o r E P S a n d p e r c e n t a g e s . Revenue $1,825 to $1,875 Gross Margin ~14.5% G&A Expense as % of Revenue ~5.0% Three Year Revenue Growth Expectations:Othe
Slide 21: 2022 Modeling Considerations Continued
21S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 2022 Modeling Considerations Continued* * I n M i l l i o n s e x c e p t f o r p e r c e n t a g e s . NON-CASH ITEMS FY 2022 Expectations FY 2021 Depreciation $34 to $36 $22.7 Intangible Amortization $15 to $16 $11.5 Debt Issu
Slide 22: Reconciliation of Non-GAAP Supplemental Adjusted Financial Data
22S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Reconciliation of Non-GAAP Supplemental Adjusted Financial Data*(1) * I n T h o u s a n d s
Slide 23: Reconciliation of Non-GAAP Supplemental Adjusted Financial Data
23S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Reconciliation of Non-GAAP Supplemental Adjusted Financial Data*(1) * I n T h o u s a n d s
Slide 24: Reconciliation of Non-GAAP Supplemental Adjusted Financial Data
24S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Reconciliation of Non-GAAP Supplemental Adjusted Financial Data*(1) * I n T h o u s a n d s
Slide 25: Reconciliation of Non-GAAP Supplemental Adjusted Financial Data
25S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 Reconciliation of Non-GAAP Supplemental Adjusted Financial Data*(1) * I n T h o u s a n d s
Slide 26: EBITDA Reconciliation
26S t e r l i n g : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 1 EBITDA Reconciliation* * I n T h o u s a n d s
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