Sterling Reports Record Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

Sterling Infrastructure announced robust 2022 financial results, reporting revenues of $448.6 million for Q4, up 26% year-over-year. Full-year revenue increased 25% to $1.9 billion. Net income for 2022 reached $106.5 million, or $3.48 per diluted share, compared to $62.6 million in 2021. The company saw significant EBITDA growth, with EBITDA up 51% for the year. Sterling's optimism for 2023 includes guidance of $1.9 billion to $2.0 billion in revenue and net income between $104 million to $110 million. The firm highlighted a record backlog of $1.41 billion, supporting future growth.

Positive

• Q4 2022 revenue of $448.6 million, up 26% year-over-year.
• Full-year net income of $106.5 million, or $3.48 per diluted share, up from $62.6 million in 2021.
• EBITDA increased 51% to $208.7 million in 2022.
• Record backlog of $1.41 billion at year-end 2022, up 7% from 2021.
• 2023 revenue guidance of $1.9 billion to $2.0 billion.

Negative

• None.

Provides 2023 Full Year Guidance

THE WOODLANDS, Texas--(BUSINESS WIRE)-- Sterling Infrastructure, Inc. (NasdaqGS: STRL) (“Sterling” or the “Company”) today announced financial results for the fourth quarter and full year 2022 and provided full year 2023 guidance.

Fourth Quarter 2022 Results (compared with prior year period)

(The financial information herein is from continuing operations unless otherwise noted)

• Revenues of $448.6 million, an increase of 26%
• Gross margin of 15.4%, an increase from 14.8%
• Net Income was $20.2 million, or $0.66 per diluted share, an increase of 80% and 74%, respectively
• EBITDA⁽¹⁾ of $49.9 million, an increase of 78%; Adjusted EBITDA⁽¹⁾ of $50.1 million, an increase of 58%
• Cash flows from operations⁽²⁾ of $88.5 million and $219.1 million for the fourth quarter and year ended December 31, 2022, respectively
• Cash and Cash Equivalents totaled $181.5 million at December 31, 2022
• Backlog at December 31, 2022 was $1.41 billion, an increase of 7% over December 31, 2021
• Combined backlog⁽³⁾ at December 31, 2022 was $1.69 billion, an increase of 25% over December 31, 2021

Continuing Operations–For the full year ended December 31, 2022, the Company reported net income of $96.7 million, or $3.16 per diluted share, versus $61.5 million, or $2.11 per diluted share, for 2021. Revenue increased by 25% over 2021. EBITDA⁽¹⁾ increased 51% to $208.7 million in 2022, versus $138.1 million in 2021. Adjusted EBITDA⁽¹⁾ increased 49% to $209.5 million in 2022, versus $140.9 million in 2021.

Discontinued Operations–For the full year ended December 31, 2022, the Company reported net income of $9.7 million, or $0.32 per diluted share, versus $1.2 million, or $0.04 per diluted share, for 2021. The increase was primarily driven by a pretax gain of $16.7 million, as the result of the disposition of the Company’s 50% ownership interest in its partnership with Myers & Sons Construction L.P.

For the full year ended December 31, 2022, the Company reported net income attributable to Sterling common stockholders⁽²⁾ of $106.5 million, or $3.48 per diluted share, versus $62.6 million, or $2.15 per diluted share, for 2021.

(1) The Company defines EBITDA as GAAP net income from Continuing Operations, adjusted for depreciation and amortization, net interest expense and taxes. The Company defines Adjusted EBITDA as EBITDA excluding the impact of the net gain on extinguishment of debt and acquisition related costs. See the “Non-GAAP Measures” and “EBITDA Reconciliation” sections below for more information.

(2) Includes both Continuing and Discontinued Operations.

(3) Combined Backlog includes Unsigned Low-bid Awards of $275.0 million and $22.5 million at December 31, 2022 and December 31, 2021, respectively.

CEO Remarks and Outlook

“2022 marked another year of significant progress in transforming the company into a leading Infrastructure Service Provider. During a time of increased inflation and supply chain disruptions, our team’s ability to grow revenue 25% and improve margins 110 basis points over the prior year is truly amazing,” stated Joe Cutillo, Sterling’s Chief Executive Officer.

“Our E-Infrastructure Solutions segment delivered remarkable top-line growth of 93% compared to the prior year and remained our largest revenue, fastest-growing and highest-margin segment. E-Infrastructure organic growth was 31% while 62% was from the acquisition of Petillo. In our Building Solutions and Transportation Solutions segments we saw slower growth but significant operating income improvements. In Building Solutions, our operating income improved 13% and in Transportation Solutions, our operating income improved 34%,” continued Mr. Cutillo.

“We enter 2023 stronger than ever. With our record backlog and strong demand in E-Infrastructure and Transportation Solutions, we are confident in our ability to deliver another year of record earnings and value to our customers and investors,” Mr. Cutillo concluded.

Full Year 2023 Guidance:

• Revenue of $1.9 billion to $2.0 billion
• Net Income of $104 million to $110 million
• EPS of $3.33 to $3.53
• EBITDA⁽¹⁾ of $220 million to $235 million

Conference Call

Sterling’s management will hold a conference call to discuss these results and recent corporate developments on Tuesday, February 28, 2023 at 9:00 a.m. ET/8:00 a.m. CT. Interested parties may participate in the call by dialing (201) 493-6744 or (877) 445-9755. Please call in 10 minutes before the conference call is scheduled to begin and ask for the Sterling Infrastructure call. To coincide with the conference call, Sterling will post a slide presentation at www.strlco.com on the Events & Presentations section of the Investor Relations tab. Following management’s opening remarks, there will be a question and answer session.

To listen to a simultaneous webcast of the call, please go to the Company’s website at www.strlco.com at least 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on the Company’s website for 30 days.

About Sterling

Sterling operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States (the “U.S.”), primarily across the Southern, Northeastern and Mid-Atlantic U.S., the Rocky Mountain States, and Hawaii, as well as other areas with strategic construction opportunities. E-Infrastructure Solutions projects include advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail and storm drainage systems. Building Solutions projects include residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs and other concrete work. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society’s quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.

Joe Cutillo, CEO, “We build and service the infrastructure that enables our economy to run, our people to move and our country to grow.”

(1) The Company defines EBITDA as GAAP net income attributable to Sterling’s common stockholders, adjusted for depreciation and amortization, net interest expense and taxes. See the “Non-GAAP Measures” and “EBITDA Reconciliation” sections below for more information.

Important Information for Investors and Stockholders

Non-GAAP Measures

This press release contains “Non-GAAP” financial measures as defined under Regulation G of the amended U.S. Securities Exchange Act of 1934. The Company reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), but the Company believes that certain Non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the Company’s ongoing operations and are useful for period-over-period comparisons of those operations.

Non-GAAP measures may include adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that the Company does not consider to be representative of its normal operations. The Company believes that these measures are useful for investors to review, because they provide a consistent measure of the underlying financial results of the Company’s ongoing business and, in the Company’s view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, the Company uses each of these to measure the performance of the Company’s operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for net income, EPS, or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Reconciliations of Non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included within this press release.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about: our business strategy; our financial strategy; our industry outlook; our guidance; and our plans, objectives, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact included in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. The forward-looking statements contained in this press release are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors listed in the “Risk Factors” section in our filings with the U.S. Securities and Exchange Commission and elsewhere in those filings. Additional factors or risks that we currently deem immaterial, that are not presently known to us or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
Continuing Operations:
Revenues		$	448,607			$	355,375			$	1,769,436			$	1,414,374
Cost of revenues			(379,641	)			(302,863	)			(1,494,869	)			(1,210,842	)
Gross profit			68,966				52,512				274,567				203,532
General and administrative expense			(23,104	)			(22,971	)			(86,480	)			(69,153	)
Intangible asset amortization			(3,509	)			(2,866	)			(14,100	)			(11,464	)
Acquisition related costs			(265	)			(3,877	)			(827	)			(3,877	)
Other operating expense, net			(5,045	)			(2,740	)			(13,290	)			(12,027	)
Operating income			37,043				20,058				159,870				107,011
Interest income			684				12				885				45
Interest expense			(6,329	)			(3,675	)			(20,591	)			(19,311	)
Gain on extinguishment of debt, net			—				—				—				1,064
Income before income taxes			31,398				16,395				140,164				88,809
Income tax expense			(10,741	)			(4,552	)			(41,707	)			(24,874	)
Net income, including noncontrolling interests			20,657				11,843				98,457				63,935
Less: Net income attributable to noncontrolling interests			(424	)			(573	)			(1,740	)			(2,478	)
Net income from Continuing Operations		$	20,233			$	11,270			$	96,717			$	61,457
Discontinued Operations:
Pretax (loss) income		$	(1,561	)		$	(289	)		$	(4,848	)		$	1,214
Pretax gain on disposition			16,687				—				16,687				—
Income tax expense			(3,634	)			(73	)			(2,095	)			(26	)
Net income (loss) from Discontinued Operations		$	11,492			$	(362	)		$	9,744			$	1,188
Net income attributable to Sterling common stockholders		$	31,725			$	10,908			$	106,461			$	62,645
Net income per share from Continuing Operations:
Basic		$	0.67			$	0.39			$	3.20			$	2.15
Diluted		$	0.66			$	0.38			$	3.16			$	2.11
Net income (loss) per share from Discontinued Operations:
Basic		$	0.38			$	(0.01	)		$	0.32			$	0.04
Diluted		$	0.37			$	(0.01	)		$	0.32			$	0.04
Net income per share attributable to Sterling common stockholders:
Basic		$	1.05			$	0.38			$	3.53			$	2.19
Diluted		$	1.03			$	0.37			$	3.48			$	2.15
Weighted average common shares outstanding:
Basic			30,324				28,818				30,199				28,600
Diluted			30,739				29,756				30,564				29,101

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES SEGMENT INFORMATION (In thousands) (Unaudited)
		Three Months Ended December 31,												Twelve Months Ended December 31,
Revenues		2022				% of Revenue		2021				% of Revenue		2022				% of Revenue		2021				% of Revenue
E-Infrastructure Solutions		$	247,272			55%		$	127,183			36%		$	905,277			51%		$	468,784			33%
Transportation Solutions			126,545			28%			149,517			42%			542,550			31%			628,190			45%
Building Solutions			74,790			17%			78,675			22%			321,609			18%			317,400			22%
Total Revenues		$	448,607					$	355,375					$	1,769,436					$	1,414,374
Operating Income (Loss)
E-Infrastructure Solutions		$	29,811			12.1%		$	18,734			14.7%		$	121,453			13.4%		$	80,478			17.2%
Transportation Solutions			5,070			4.0%			4,238			2.8%			26,623			4.9%			19,888			3.2%
Building Solutions			8,260			11.0%			9,175			11.7%			36,693			11.4%			32,564			10.3%
Segment Operating Income			43,141			9.6%			32,147			9.0%			184,769			10.4%			132,930			9.4%
Corporate			(5,833	)					(8,212	)					(24,072	)					(22,042	)
Acquisition Related Costs			(265	)					(3,877	)					(827	)					(3,877	)
Total Continued Operating Income		$	37,043			8.3%		$	20,058			5.6%		$	159,870			9.0%		$	107,011			7.6%

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited)
		December 31, 2022			December 31, 2021
Assets
Current assets:
Cash and cash equivalents		$	181,544		$	60,945
Accounts receivable			262,646			200,185
Contract assets			109,803			75,796
Receivables from and equity in construction joint ventures			14,122			9,839
Current assets of Discontinued Operations			—			71,886
Other current assets			29,139			16,040
Total current assets			597,254			434,691
Property and equipment, net			215,482			193,896
Operating lease right-of-use assets, net			59,415			19,473
Goodwill			262,692			258,290
Other intangibles, net			299,123			303,223
Non-current assets of Discontinued Operations			—			20,746
Other non-current assets, net			7,654			4,455
Total assets		$	1,441,620		$	1,234,774
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	121,887		$	112,746
Contract liabilities			239,297			118,672
Current maturities of long-term debt			32,610			23,373
Current portion of long-term lease obligations			19,715			6,557
Accrued compensation			24,136			20,415
Current liabilities of Discontinued Operations			—			51,914
Other current liabilities			8,966			18,083
Total current liabilities			446,611			351,760
Long-term debt			398,735			428,507
Long-term lease obligations			40,103			13,068
Members’ interest subject to mandatory redemption and undistributed earnings			21,597			19,322
Deferred tax liability, net			51,659			18,434
Long-term liabilities of Discontinued Operations			—			38,637
Other long-term liabilities			5,116			4,819
Total liabilities			963,821			874,547
Stockholders’ equity:
Common stock			306			298
Additional paid in capital			287,914			280,274
Retained earnings			186,379			79,918
Accumulated other comprehensive loss			—			(1,723	)
Total Sterling stockholders’ equity			474,599			358,767
Noncontrolling interests			3,200			1,460
Total stockholders’ equity			477,799			360,227
Total liabilities and stockholders’ equity		$	1,441,620		$	1,234,774

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		Years Ended December 31,
		2022				2021
Cash flows from operating activities:
Net income		$	108,201			$	65,123
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			52,066				34,201
Amortization of debt issuance costs and non-cash interest			2,136				2,242
Gain on disposal of property and equipment			(2,637	)			(1,396	)
Gain on debt extinguishment, net			(2,428	)			(2,032	)
Gain on disposition of Myers			(16,687	)			—
Deferred taxes			36,492				21,428
Stock-based compensation			12,726				11,771
Change in fair value of interest rate swap			(203	)			(32	)
Changes in operating assets and liabilities			29,450				27,627
Net cash provided by operating activities			219,116				158,932
Cash flows from investing activities:
Acquisitions, net of cash acquired			(18,004	)			(180,911	)
Disposition, net of cash disposed			(15,789	)			—
Capital expenditures			(60,909	)			(46,651	)
Proceeds from sale of property and equipment			4,947				4,113
Net cash used in investing activities			(89,755	)			(223,449	)
Cash flows from financing activities:
Cash received from credit facility			—				140,000
Repayments of debt			(23,373	)			(48,273	)
Distributions to noncontrolling interest owners			—				(2,477	)
Withholding taxes paid on net share settlement of equity awards			(9,416	)			(7,338	)
Debt issuance costs			—				(1,340	)
Other			—				(4	)
Net cash used in financing activities			(32,789	)			80,568
Net change in cash, cash equivalents, and restricted cash			96,572				16,051
Cash, cash equivalents and restricted cash at beginning of period			88,693				72,642
Cash, cash equivalents and restricted cash at end of period			185,265				88,693
Less: restricted cash (other current assets) - Continuing Operations			(3,721	)			(3,821	)
Less: cash, cash equivalents and restricted cash - Discontinued Operations			—				(23,927	)
Cash and cash equivalents at end of period - Continuing Operations		$	181,544			$	60,945

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES HISTORICAL QUARTERLY SEGMENT INFORMATION (In thousands) (Unaudited)
The following tables present our 2022, 2021 and 2020 quarterly revenue and income from operations by segment adjusted to conform to our 2022 continuing operations presentation:
		2022 Quarters Ended (unaudited)
Revenues		March 31				June 30				September 30				December 31				Total
E-Infrastructure Solutions		$	168,927			$	233,548			$	255,530			$	247,272			$	905,277
Transportation Solutions			116,141				142,640				157,224				126,545				542,550
Building Solutions			80,894				85,639				80,286				74,790				321,609
Revenues		$	365,962			$	461,827			$	493,040			$	448,607			$	1,769,436
Operating Income (Loss)
E-Infrastructure Solutions		$	21,285			$	32,824			$	37,533			$	29,811			$	121,453
Transportation Solutions			4,443				7,410				9,700				5,070				26,623
Building Solutions			9,358				9,751				9,324				8,260				36,693
Segment Operating Income			35,086				49,985				56,557				43,141				184,769
Corporate			(5,468	)			(5,766	)			(7,005	)			(5,833	)			(24,072	)
Acquisition related costs			(255	)			(230	)			(77	)			(265	)			(827	)
Operating Income		$	29,363			$	43,989			$	49,475			$	37,043			$	159,870
		2021 Quarters Ended (unaudited)
Revenues		March 31				June 30				September 30				December 31				Total
E-Infrastructure Solutions		$	96,572			$	123,743			$	121,286			$	127,183			$	468,784
Transportation Solutions			119,097				160,017				199,559				149,517				628,190
Building Solutions			71,690				74,769				92,266				78,675				317,400
Revenues		$	287,359			$	358,529			$	413,111			$	355,375			$	1,414,374
Operating Income (Loss)
E-Infrastructure Solutions		$	17,812			$	24,714			$	19,218			$	18,734			$	80,478
Transportation Solutions			2,300				4,414				8,936				4,238				19,888
Building Solutions			7,361				6,790				9,238				9,175				32,564
Segment Operating Income			27,473				35,918				37,392				32,147				132,930
Corporate			(5,044	)			(3,404	)			(5,382	)			(8,212	)			(22,042	)
Acquisition related costs			—				—				—				(3,877	)			(3,877	)
Operating Income		$	22,429			$	32,514			$	32,010			$	20,058			$	107,011
		2020 Quarters Ended (unaudited)
Revenues		March 31				June 30				September 30				December 31				Total
E-Infrastructure Solutions		$	78,574			$	103,310			$	114,961			$	100,408			$	397,253
Transportation Solutions			108,924				168,413				143,512				132,301				553,150
Building Solutions			64,828				73,951				67,419				70,137				276,335
Revenues		$	252,326			$	345,674			$	325,892			$	302,846			$	1,226,738
Operating Income (Loss)
E-Infrastructure Solutions		$	13,630			$	23,573			$	22,416			$	16,903			$	76,522
Transportation Solutions			(1,387	)			6,739				3,714				2,932				11,998
Building Solutions			7,438				8,950				7,687				6,366				30,441
Segment Operating Income			19,681				39,262				33,817				26,201				118,961
Corporate			(7,195	)			(6,589	)			(5,529	)			(6,007	)			(25,320	)
Acquisition related costs			(473	)			(139	)			(401	)			(13	)			(1,026	)
Operating Income		$	12,013			$	32,534			$	27,887			$	20,181			$	92,615

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA FROM CONTINUING OPERATIONS RECONCILIATION (In thousands) (Unaudited)
		Three Months Ended December 31,						Twelve Months Ended December 31,
		2022			2021			2022			2021
Net income from Continuing Operations		$	20,233		$	11,270		$	96,717		$	61,457
Depreciation and amortization			13,253			8,456			50,575			32,503
Interest expense, net of interest income			5,645			3,663			19,706			19,266
Income tax expense			10,741			4,552			41,707			24,874
EBITDA from Continuing Operations (1)			49,872			27,941			208,705			138,100
Gain on extinguishment of debt, net			—			—			—			(1,064	)
Acquisition related costs			265			3,877			827			3,877
Adjusted EBITDA from Continuing Operations (2)		$	50,137		$	31,818		$	209,532		$	140,913

(1) The Company defines EBITDA as GAAP net income from Continuing Operations, adjusted for depreciation and amortization, net interest expense and taxes.
(2) Adjusted EBITDA excludes the impact of the net gain on extinguishment of debt and acquisition related costs.

STERLING INFRASTRUCTURE, INC. & SUBSIDIARIES EBITDA GUIDANCE RECONCILIATION (In millions) (Unaudited)
		Full Year 2023 Guidance
		Low			High
Net income attributable to Sterling common stockholders		$	104		$	110
Depreciation and amortization			55			59
Interest expense, net of interest income			21			24
Income tax expense			40			42
EBITDA (1)		$	220		$	235

(1) The Company defines EBITDA as GAAP net income attributable to Sterling common stockholders, adjusted for depreciation and amortization, net interest expense, and taxes.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230227005826/en/

Company:

Sterling Infrastructure, Inc.

Ron Ballschmiede, Chief Financial Officer

281-214-0777

Investor Relations:

The Equity Group Inc.

Jeremy Hellman, CFA

212-836-9626

Source: Sterling Infrastructure, Inc.

FAQ

What are Sterling Infrastructure's fourth quarter 2022 earnings reported on February 28, 2023?

Sterling reported Q4 2022 revenues of $448.6 million, net income of $20.2 million, and EBITDA of $49.9 million.

What is Sterling Infrastructure's revenue guidance for 2023?

Sterling Infrastructure projects revenue between $1.9 billion and $2.0 billion for 2023.

How much did Sterling Infrastructure's net income increase in 2022?

Net income for Sterling Infrastructure increased to $106.5 million in 2022, up from $62.6 million in 2021.

What is the significance of Sterling Infrastructure's backlog as of December 31, 2022?

Sterling's backlog was $1.41 billion, an increase of 7% year-over-year, indicating strong future demand.

What are the projected earnings per share (EPS) for Sterling Infrastructure in 2023?

Sterling Infrastructure expects EPS between $3.33 and $3.53 in 2023.