STERLING CONSTRUCTION COMPANY, INC.
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Delaware
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1-31993
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25-1655321
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(State or other jurisdiction of
incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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1800 Hughes Landing Blvd.
The Woodlands, Texas
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77380
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (281) 214-0800
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit
Number
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Description
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99.1
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Press release, dated November 10, 2014 (furnished herewith)
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Date: November 10, 2014 | Sterling Construction Company, Inc. | |
/s/ Thomas R. Wright | ||
Thomas R. Wright
Executive Vice President & Chief Financial Officer
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Exhibit
Number
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Description
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99.1
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Press release, dated November 10, 2014 (furnished herewith)
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·
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Revenues increased to $189.3 million compared to $185.9 million;
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·
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Gross margins were 4.4% of revenues compared to 4.5%;
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·
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General and administrative expenses as a percentage of revenues were 4.9% compared to 4.4%;
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·
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Operating loss was $1.6 million compared to operating income of $1.7 million;
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·
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Net loss attributable to Sterling common stockholders was $3.9 million compared to a net loss of $0.2 million; and,
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·
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Net loss per diluted share attributable to common stockholders was $0.21 compared to a net loss per diluted share attributable to common stockholders of $0.06.
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Bookings during the quarter were $176 million, representing a book-to-bill ratio of 0.93:1;
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Total backlog at September 30, 2014 was $759 million, up from $727 million at June 30, 2014,
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$687 million at December 31, 2013 and $694 million at September 30, 2013;
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Total backlog at September 30, 2014 excluded $82 million of projects where the Company was the apparent low bidder, but had not yet been awarded the contract; and,
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We estimate that the average gross margin of our projects in backlog is in the mid-6% range.
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·
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Working capital totaled $53.7 million, including $17.0 million of cash and cash equivalents;
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The Company had borrowings of $37.1 million on its credit facility and availability of $2.9 million; and,
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Tangible net worth was $92.1 million.
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Contact:
Sterling Construction Company, Inc.
Thomas R. Wright, EVP & Chief Financial Officer
Brian Manning, P.E.
EVP & Chief Development Officer
281-214-0800
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Investor Relations Counsel:
The Equity Group Inc.
Fred Buonocore 212-836-9607
Linda Latman 212-836-9609
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2014
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2013
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2014
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2013
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Revenues
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$ | 189,275 | $ | 185,935 | $ | 518,618 | $ | 430,320 | ||||||||
Cost of revenues
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(180,919 | ) | (177,576 | ) | (489,894 | ) | (437,211 | ) | ||||||||
Gross profit (loss)
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8,356 | 8,359 | 28,724 | (6,891 | ) | |||||||||||
General and administrative expenses
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(9,326 | ) | (8,176 | ) | (27,316 | ) | (27,273 | ) | ||||||||
Other operating income (expense), net
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(603 | ) | 1,514 | (4 | ) | 1,965 | ||||||||||
Operating income (loss)
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(1,573 | ) | 1,697 | 1,404 | (32,199 | ) | ||||||||||
Gain (loss) on sale of securities
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-- | (11 | ) | -- | 472 | |||||||||||
Interest income
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113 | 335 | 644 | 871 | ||||||||||||
Interest expense
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(211 | ) | (306 | ) | (766 | ) | (614 | ) | ||||||||
Income (loss) before income taxes and earnings attributable to noncontrolling interests
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(1,671 | ) | 1,715 | 1,282 | (31,470 | ) | ||||||||||
Income tax (expense) benefit
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(546 | ) | 380 | (573 | ) | 12,928 | ||||||||||
Net income (loss)
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(2,217 | ) | 2,095 | 709 | (18,542 | ) | ||||||||||
Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures
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(1,718 | ) | (2,284 | ) | (3,238 | ) | (3,250 | ) | ||||||||
Net loss attributable to Sterling common stockholders
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$ | (3,935 | ) | $ | (189 | ) | $ | (2,529 | ) | $ | (21,792 | ) | ||||
Net loss per share attributable to Sterling common stockholders:
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Basic
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$ | (0.21 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (1.38 | ) | ||||
Diluted
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$ | (0.21 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (1.38 | ) | ||||
Weighted average number of common shares outstanding used in computing per share amounts:
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Basic
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18,809,401 | 16,652,074 | 17,814,332 | 16,626,118 | ||||||||||||
Diluted
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18,809,401 | 16,652,074 | 17,814,332 | 16,626,118 |
September 30,
2014
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December 31,
2013
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 17,000 | $ | 1,872 | ||||
Contracts receivable, including retainage
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105,302 | 77,245 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts
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31,745 | 11,684 | ||||||
Inventories
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6,618 | 6,189 | ||||||
Receivables from and equity in construction joint ventures
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10,621 | 6,118 | ||||||
Other current assets
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10,153 | 11,377 | ||||||
Total current assets
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181,439 | 114,485 | ||||||
Property and equipment, net
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90,453 | 93,683 | ||||||
Goodwill
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54,820 | 54,820 | ||||||
Other assets, net
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8,356 | 10,030 | ||||||
Total assets
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$ | 335,068 | $ | 273,018 | ||||
LIABILITIES AND EQUITY
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Current liabilities:
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Accounts payable
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$ | 81,097 | $ | 61,599 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts
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28,521 | 31,576 | ||||||
Current maturities of long-term debt
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964 | 134 | ||||||
Income taxes payable
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1,868 | 2,035 | ||||||
Accrued compensation
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10,985 | 5,755 | ||||||
Current obligation for noncontrolling owners’ interest in subsidiaries and joint ventures
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-- | 196 | ||||||
Other current liabilities
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4,304 | 4,504 | ||||||
Total current liabilities
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127,739 | 105,799 | ||||||
Long-term liabilities:
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Long-term debt, net of current maturities
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36,810 | 8,331 | ||||||
Member’s interest subject to mandatory redemption and undistributed earnings
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22,837 | 23,989 | ||||||
Other long-term liabilities
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734 | 2,105 | ||||||
Total long-term liabilities
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60,381 | 34,425 | ||||||
Commitments and contingencies
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Equity:
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Sterling stockholders’ equity:
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Preferred stock, par value $0.01 per share; 1,000,000 shares authorized, none issued
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-- | -- | ||||||
Common stock, par value $0.01 per share; 28,000,000 shares authorized, 18,802,879 and 16,657,754 shares issued
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188 | 167 | ||||||
Additional paid in capital
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205,534 | 190,926 | ||||||
Retained deficit
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(64,846 | ) | (62,317 | ) | ||||
Accumulated other comprehensive income (loss)
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(73 | ) | 117 | |||||
Total Sterling common stockholders’ equity
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140,803 | 128,893 | ||||||
Noncontrolling interests
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6,145 | 3,901 | ||||||
Total equity
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146,948 | 132,794 | ||||||
Total liabilities and equity
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$ | 335,068 | $ | 273,018 |
Nine Months Ended
September 30,
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2014
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2013
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Net loss attributable to Sterling common stockholders
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$ | (2,529 | ) | $ | (21,792 | ) | ||
Income tax expense (benefit)
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573 | (12,928 | ) | |||||
Interest expense
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766 | 614 | ||||||
Depreciation and amortization
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13,809 | 14,020 | ||||||
12,619 | (20,086 | ) | ||||||
Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures
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3,238 | 3,250 | ||||||
EBITDA
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$ | 15,857 | $ | (16,836 | ) |
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