FORM |
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(Exact name of registrant as specified in its charter) | ||||||||||||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: ( | ||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
(Title of Class) | (Trading Symbol) | (Name of each exchange on which registered) | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2 of this chapter). | |||||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
On The information provided in this Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act, nor shall it be incorporated by reference in any filing made by the Company pursuant to the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto. |
On May 7, 2024, the Company will host a conference call to discuss the first quarter 2024 results as well as corporate developments. The slides to be used during the conference call are being furnished with this Current Report on Form 8-K as Exhibit 99.2 and are incorporated herein by reference. The information provided in this Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act, nor shall it be incorporated by reference in any filing made by the Company pursuant to the Exchange Act or the Securities Act, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto. |
Exhibit Number | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. |
STERLING INFRASTRUCTURE, INC. | |||||||||||
Date: | By: | /s/ Ronald A. Ballschmiede | |||||||||
Ronald A. Ballschmiede | |||||||||||
Chief Financial Officer |
Company Contact: Sterling Infrastructure, Inc. Noelle Dilts, VP Investor Relations and Corporate Strategy 281-214-0795 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | $ | 440,360 | $ | 403,579 | |||||||
Cost of revenues | (363,456) | (341,837) | |||||||||
Gross profit | 76,904 | 61,742 | |||||||||
General and administrative expense | (27,298) | (23,321) | |||||||||
Intangible asset amortization | (4,297) | (3,736) | |||||||||
Acquisition related costs | (36) | (190) | |||||||||
Other operating expense, net | (3,148) | (1,868) | |||||||||
Operating income | 42,125 | 32,627 | |||||||||
Interest income | 5,902 | 1,974 | |||||||||
Interest expense | (6,664) | (7,528) | |||||||||
Income before income taxes | 41,363 | 27,073 | |||||||||
Income tax expense | (7,604) | (7,033) | |||||||||
Net income, including noncontrolling interests | 33,759 | 20,040 | |||||||||
Less: Net income attributable to noncontrolling interests | (2,711) | (391) | |||||||||
Net income attributable to Sterling common stockholders | $ | 31,048 | $ | 19,649 | |||||||
Net income per share attributable to Sterling common stockholders: | |||||||||||
Basic | $ | 1.00 | $ | 0.64 | |||||||
Diluted | $ | 1.00 | $ | 0.64 | |||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 30,977 | 30,618 | |||||||||
Diluted | 31,186 | 30,789 |
Three Months Ended March 31, | |||||||||||||||||||||||
Revenues | 2024 | % of Revenue | 2023 | % of Revenue | |||||||||||||||||||
E-Infrastructure Solutions | $ | 184,476 | 42% | $ | 205,840 | 51% | |||||||||||||||||
Transportation Solutions | 148,969 | 34% | 111,139 | 28% | |||||||||||||||||||
Building Solutions | 106,915 | 24% | 86,600 | 21% | |||||||||||||||||||
Total Revenues | $ | 440,360 | $ | 403,579 | |||||||||||||||||||
Operating Income | |||||||||||||||||||||||
E-Infrastructure Solutions | $ | 27,169 | 14.7% | $ | 24,269 | 11.8% | |||||||||||||||||
Transportation Solutions | 8,132 | 5.5% | 5,306 | 4.8% | |||||||||||||||||||
Building Solutions | 14,775 | 13.8% | 8,701 | 10.0% | |||||||||||||||||||
Segment Operating Income | 50,076 | 11.4% | 38,276 | 9.5% | |||||||||||||||||||
Corporate G&A Expense | (7,915) | (5,459) | |||||||||||||||||||||
Acquisition Related Costs | (36) | (190) | |||||||||||||||||||||
Total Operating Income | $ | 42,125 | 9.6% | $ | 32,627 | 8.1% | |||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 480,414 | $ | 471,563 | |||||||
Accounts receivable | 274,010 | 252,435 | |||||||||
Contract assets | 88,329 | 88,600 | |||||||||
Receivables from and equity in construction joint ventures | 18,222 | 17,506 | |||||||||
Other current assets | 17,883 | 17,875 | |||||||||
Total current assets | 878,858 | 847,979 | |||||||||
Property and equipment, net | 258,802 | 243,648 | |||||||||
Operating lease right-of-use assets, net | 55,169 | 57,235 | |||||||||
Goodwill | 281,363 | 281,117 | |||||||||
Other intangibles, net | 324,100 | 328,397 | |||||||||
Other non-current assets, net | 19,204 | 18,808 | |||||||||
Total assets | $ | 1,817,496 | $ | 1,777,184 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 135,426 | $ | 145,968 | |||||||
Contract liabilities | 485,049 | 444,160 | |||||||||
Current maturities of long-term debt | 26,469 | 26,520 | |||||||||
Current portion of long-term lease obligations | 19,143 | 19,641 | |||||||||
Accrued compensation | 19,831 | 27,758 | |||||||||
Other current liabilities | 19,799 | 14,121 | |||||||||
Total current liabilities | 705,717 | 678,168 | |||||||||
Long-term debt | 308,721 | 314,996 | |||||||||
Long-term lease obligations | 36,180 | 37,722 | |||||||||
Members’ interest subject to mandatory redemption and undistributed earnings | 19,097 | 29,108 | |||||||||
Deferred tax liability, net | 78,303 | 76,764 | |||||||||
Other long-term liabilities | 17,261 | 16,573 | |||||||||
Total liabilities | 1,165,279 | 1,153,331 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock | 311 | 309 | |||||||||
Additional paid in capital | 288,173 | 293,570 | |||||||||
Retained earnings | 356,082 | 325,034 | |||||||||
Total Sterling stockholders’ equity | 644,566 | 618,913 | |||||||||
Noncontrolling interests | 7,651 | 4,940 | |||||||||
Total stockholders’ equity | 652,217 | 623,853 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,817,496 | $ | 1,777,184 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 33,759 | $ | 20,040 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 16,258 | 13,692 | |||||||||
Amortization of debt issuance costs and non-cash interest | 305 | 422 | |||||||||
Gain on disposal of property and equipment | (585) | (1,672) | |||||||||
Deferred taxes | 1,517 | 2,728 | |||||||||
Stock-based compensation | 4,586 | 3,240 | |||||||||
Changes in operating assets and liabilities | (6,249) | 10,608 | |||||||||
Net cash provided by operating activities | 49,591 | 49,058 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash acquired | (1,016) | — | |||||||||
Disposition proceeds | — | 14,000 | |||||||||
Capital expenditures | (22,432) | (14,221) | |||||||||
Proceeds from sale of property and equipment | 2,401 | 6,726 | |||||||||
Net cash (used in) provided by investing activities | (21,047) | 6,505 | |||||||||
Cash flows from financing activities: | |||||||||||
Repayments of debt | (6,678) | (30,843) | |||||||||
Withholding taxes paid on net share settlement of equity awards | (13,015) | (4,288) | |||||||||
Net cash used in financing activities | (19,693) | (35,131) | |||||||||
Net change in cash, cash equivalents, and restricted cash | 8,851 | 20,432 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 471,563 | 185,265 | |||||||||
Cash, cash equivalents and restricted cash at end of period | 480,414 | 205,697 | |||||||||
Less: restricted cash | — | (3,121) | |||||||||
Cash and cash equivalents at end of period | $ | 480,414 | $ | 202,576 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income attributable to Sterling common stockholders | $ | 31,048 | $ | 19,649 | |||||||
Depreciation and amortization | 16,258 | 13,692 | |||||||||
Interest expense, net of interest income | 762 | 5,554 | |||||||||
Income tax expense | 7,604 | 7,033 | |||||||||
EBITDA(1) | 55,672 | 45,928 | |||||||||
Acquisition related costs | 36 | 190 | |||||||||
Adjusted EBITDA(2) | $ | 55,708 | $ | 46,118 | |||||||
(1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders adjusted for depreciation and amortization, net interest expense and taxes. | |||||||||||
(2) The Company defines adjusted EBITDA as EBITDA excluding the impact of acquisition related costs. |
Full Year 2024 Guidance | |||||||||||
Low | High | ||||||||||
Net income attributable to Sterling common stockholders | $ | 160 | $ | 170 | |||||||
Depreciation and amortization | 65 | 66 | |||||||||
Interest expense, net of interest income | 3 | 4 | |||||||||
Income tax expense | 57 | 60 | |||||||||
EBITDA (1) | $ | 285 | $ | 300 | |||||||
(1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, and taxes. |
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