Sterling Construction Company, Inc. (NasdaqGS:STRL) (“Sterling” or the
“Company”) today announced certain preliminary financial results for the
first quarter ended March 31, 2014 and an amendment to the Company’s
credit facility. The Company plans to issue its complete first quarter
2014 financial results and file its form 10-Q on Monday, May 12, 2014.
First Quarter 2014 Estimated Financial Results
Compared to First Quarter 2013:
The Company estimates that total revenues for the quarter ended March
31, 2014 will be between $125 million and $135 million, as compared to
total revenues of $111 million for the same period in 2013 and that net
operating income for the first quarter of 2014 will be between breakeven
and $0.45 million, as compared to a $8.0 million net operating loss for
the same period in 2013. In addition, the Company estimates that its net
income per diluted share attributable to Sterling common stockholders
for the first quarter of 2014 will be approximately breakeven, as
compared to a net loss per diluted share attributable to Sterling common
stockholders of $0.39 for the same period in 2013. The Company benefited
from a one-time gain of $1 million related to a revaluation on a
receivable that had been written down as uncollectable in the fourth
quarter of 2013. As of March 31, 2014, the Company had $20.7 million of
revolving borrowings outstanding under its credit facility.
Credit Facility Amendment
On April 29, 2014, the Company entered into an amendment to its $40
million revolving credit facility. The amendment removes a requirement
that the Company raise $20 million of new equity capital by September
30, 2014, in addition to raising $10 million of other liquidity by June
30, 2014, provided that it raises $10 million of new equity capital by
May 30, 2014. Any new equity capital will be used to repay outstanding
indebtedness under the credit facility, and will not reduce the
Company’s borrowing capacity under the credit facility.
Peter MacKenna, President and Chief Executive Officer of Sterling said,
“Our first quarter 2014 preliminary results represent a significant
improvement in our financial performance and are reflective of the
numerous actions we have taken over the past several quarters to
strengthen our operational effectiveness and our ability to book and
efficiently execute higher margin projects. We closed the first quarter
with record backlog of nearly $800 million, up more than 15% from
December 31, 2013. Additionally, we are pleased that our primary lender
agreed to amend our credit facility in a manner that permits us to
strengthen our balance sheet, while limiting dilution to our
shareholders.”
The foregoing financial results are preliminary estimates and have not
been finalized. As a result, the Company’s actual results may differ
materially from such estimates due to the completion of the Company’s
financial accounting review procedures, final adjustments and other
developments that may arise between now and the time the financial
results for the first quarter of 2014 are finalized.
Sterling is a leading heavy civil construction company that specializes
in the building and reconstruction of transportation and water
infrastructure projects in Texas, Utah, Nevada, Arizona, California,
Hawaii, and other states where there are construction opportunities. Its
transportation infrastructure projects include highways, roads, bridges
and light rail, and its water infrastructure projects include water,
wastewater and storm drainage systems.
This press release includes certain statements that fall within the
definition of "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. Any such statements are subject to
risks and uncertainties, including overall economic and market
conditions, competitors' and customers' actions, and weather conditions,
which could cause actual results to differ materially from those
anticipated, including those risks identified in the Company's filings
with the Securities and Exchange Commission. Accordingly, such
statements should be considered in light of these risks. Any
prediction by the Company is only a statement of management's belief at
the time the prediction is made. There can be no assurance that
any prediction once made will continue thereafter to reflect
management's belief, and the Company does not undertake to update
publicly its predictions, whether as a result of new information, future
events or otherwise.
Copyright Business Wire 2014