Recent Acquisition and Base Business
Performance Drive Record Results
Raises Full Year Revenues and Income
Outlook
Sterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling”
or “the Company”) today announced financial results for the second
quarter 2020.
Consolidated Second Quarter 2020 Financial Results Compared
to Second Quarter 2019:
- Revenues were $400.0 million compared to $264.1 million;
- Gross margin was 14.9% of revenues compared to 9.7%;
- Net Income was $18.3 million compared to $7.8 million;
- EPS was $0.65 compared to $0.29; and,
- EBITDA was $41.2 million compared to $15.3 million.
Consolidated Financial Position and Liquidity:
- Cash and Cash Equivalents were $70.6 million at June 30, 2020
compared to $45.7 million at December 31, 2019;
- Cash flows from operations were $52.3 million for the six
months ended June 30, 2020 compared to $(4.3) million for the
comparable prior year period;
- Payments of scheduled Term Loan Facility debt and the seller
notes totaled $22.5 million for the six months ended June 30,
2020;
- Debt, net of cash totaled $351.4 million at June 30, 2020
compared to $387.4 million at December 31, 2019; and,
- Our $75 million Revolving Credit Facility has $55 million of
availability, reflecting a $30 million repayment in the
quarter.
Heavy Civil and Specialty Services Backlog Highlights
- Combined Backlog at June 30, 2020 was $1.57 billion, up from
$1.34 billion at December 31, 2019. Combined Backlog consists of
$1.13 billion of Backlog and $437 million of unsigned contracts as
of June 30, 2020 compared to $1.07 billion and $273 million at
December 31, 2019, respectively. No residential construction
contracts are included in Backlog.
- Total margin in Backlog has increased approximately 140 basis
points, from 11.5% at December 31, 2019 to 12.9% at June 30, 2020.
Combined Backlog gross margin improved from 11.0% at December 31,
2019 to 11.7% at June 30, 2020.
Full Year Revenue and Income Guidance
- Revenue: $1.415 billion to $1.430 billion.
- Net Income: $41 million to $44 million, excluding acquisition
related costs of $1 million to $2 million.
CEO Remarks and Outlook
“I am extremely proud of what our employees were able to
accomplish in one of the most challenging times in our Company’s
history,” stated Joe Cutillo, Sterling’s Chief Executive Officer.
“Our bottom-line results were the best ever achieved by the
Company, which reflects the benefits of our strategy to transform
our business portfolio and our overall project mix towards higher
value add, lower risk, and more profitable work. Most importantly,
we delivered this performance while maintaining the health and
safety of our team across all of our operating geographies, which
is a testament to the attentiveness, discipline and professionalism
of our nearly 3,000 employees in the face of our nation’s ongoing
battle against the COVID-19 pandemic.”
“Our Specialty Services segment, which includes our recent
acquisition of Plateau, more than doubled its operating profit
relative to the first quarter of 2020. Plateau entered the quarter
with record backlog and executed flawlessly for its blue chip
customer base. Our Residential segment rebounded from the
pandemic-related headwinds of the first quarter, and also solidly
outperformed the prior year quarter driven by a faster than
anticipated recovery of the Texas housing market and our expansion
into the Houston market. Our Heavy Civil business has remained
stable as we executed on substantial heavy highway work during the
quarter while maintaining our backlog at near record levels. We are
yet to see significant project delays or cancellations in the
geographies in which we perform heavy civil work and have no reason
to anticipate that this will be the case for the foreseeable
future. Additionally, as yet, no states in the geographies in which
we operate have stopped or reduced project lettings due to funding
challenges. In fact, despite the uncertainty and general social and
economic disruption caused by the pandemic crisis, we remain
optimistic about the outlook for all of our businesses for the
balance of the year given our Combined Backlog, the pending new
awards we expect to realize in the coming months, and the sizeable
quantity of new project opportunities that we’ve identified.”
Mr. Cutillo continued, “In addition to record earnings, we
further enhanced our liquidity position in the second quarter. We
are comfortable with our capital structure which provides us with
the financial flexibility to continue to generate profitable
growth. For the first six months of 2020 we generated $52.3 million
of operating cash flow, an increase of $56.6 million compared to
last year. In addition, we reduced our net debt by $36.0 million
during the year. We expect to continue paying down debt over the
remainder of 2020, putting us in an increasingly strong financial
position going into 2021.”
Mr. Cutillo concluded, “Based on our year-to-date performance,
the anticipated contribution from Plateau and our record high
Combined Backlog and associated margin, along with our view on
market strength and diversification of our business, we are
providing updated guidance for 2020. We now expect to generate full
year 2020 revenues of between $1.415 billion and $1.430 billion.
Our expectation for 2020 net income attributable to Sterling common
stockholders is between $41 million to $44 million, excluding
acquisition related costs of $1 million to $2 million, representing
a 73% increase from adjusted net income in 2019. We expect our full
year 2020 diluted average common shares outstanding to be
approximately 28.0 million. This guidance assumes no significant
increase in COVID-19 pandemic impacts on our operations during the
remainder of the year. However, with the continuing volatility of
the COVID-19 pandemic, significant incremental pandemic impacts
could keep us from achieving our 2020 guidance.”
Conference Call
Sterling’s management will hold a conference call to discuss
these results and recent corporate developments on Tuesday, August
4, 2020 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 ten minutes before the conference call is
scheduled to begin and ask for the Sterling Construction call. To
coincide with the conference call, Sterling will post a slide
presentation at www.strlco.com on the Investor Presentations &
Webcast section of the Investor Relations tab, which includes
additional 2020 financial modeling considerations. 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 fifteen 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 thirty days.
About Sterling
Sterling Construction Company, Inc., (“Sterling” or “the
Company”), a Delaware corporation, is a construction company that
has been involved in the construction industry since its founding
in 1955. The Company operates through a variety of subsidiaries
within three operating groups specializing in heavy civil,
specialty services, and residential projects in the United States
(the “U.S.”), primarily across the southern U.S., the Rocky
Mountain States, California and Hawaii, as well as other areas with
strategic construction opportunities. Heavy civil includes
infrastructure and rehabilitation projects for highways, roads,
bridges, airfields, ports, light rail, water, wastewater and storm
drainage systems. Specialty services projects include construction
site excavation and drainage, drilling and blasting for excavation,
foundations for multi-family homes, parking structures and other
commercial concrete projects. Residential projects include concrete
foundations for single-family homes.
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 include adjusted net income, adjusted EPS, 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, 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 these Non-GAAP financial measures to the most
comparable GAAP measures are provided in the tables included in
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: the scope and duration
of the COVID-19 pandemic and its continuing impact on national and
global economic conditions; and our business strategy; financial
strategy; and 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 (“SEC”) and
elsewhere in those filings. The forward-looking statements speak
only as of the date made, and other than as required by law, we do
not intend to publicly update or revise any forward-looking
statements as a result of new information, future events or
otherwise. These cautionary statements qualify all forward-looking
statements attributable to us or persons acting on our behalf.
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Revenues
$
400,038
$
264,086
$
696,726
$
488,035
Cost of revenues
(340,439
)
(238,590
)
(601,882
)
(443,036
)
Gross profit
59,599
25,496
94,844
44,999
General and administrative expense
(18,451
)
(10,174
)
(36,055
)
(22,063
)
Intangible asset amortization
(2,866
)
(600
)
(5,703
)
(1,200
)
Acquisition related costs
(139
)
(262
)
(612
)
(262
)
Other operating expense, net
(5,097
)
(3,276
)
(7,325
)
(5,570
)
Operating income
33,046
11,184
45,149
15,904
Interest income
24
291
123
655
Interest expense
(7,557
)
(2,904
)
(15,360
)
(5,964
)
Income before income taxes
25,513
8,571
29,912
10,595
Income tax expense
(7,248
)
(706
)
(8,432
)
(869
)
Net income
18,265
7,865
21,480
9,726
Less: Net income attributable to
noncontrolling interests
(55
)
(37
)
(155
)
(83
)
Net income attributable to Sterling common
stockholders
$
18,210
$
7,828
$
21,325
$
9,643
Net income per share attributable to
Sterling common stockholders:
Basic
$
0.65
$
0.30
$
0.77
$
0.37
Diluted
$
0.65
$
0.29
$
0.76
$
0.36
Weighted average common shares
outstanding:
Basic
27,941
26,338
27,794
26,357
Diluted
27,957
26,623
27,887
26,657
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
% of Revenue
2019
% of Revenue
2020
% of Revenue
2019
% of Revenue
Revenue
Heavy Civil
$
220,448
55
%
$
200,236
75
%
$
376,063
53
%
$
350,741
72
%
Specialty Services
135,703
34
%
27,894
11
%
240,426
35
%
58,573
12
%
Residential
43,887
11
%
35,956
14
%
80,237
12
%
78,721
16
%
Total Revenue
$
400,038
$
264,086
$
696,726
$
488,035
Operating Income
Heavy Civil
$
3,896
1.8
%
$
5,747
2.9
%
$
274
0.1
%
$
3,600
1.0
%
Specialty Services
23,246
17.1
%
865
3.1
%
34,360
14.3
%
1,913
3.3
%
Residential
6,043
13.8
%
4,834
13.4
%
11,127
13.9
%
10,653
13.5
%
Subtotal
33,185
8.3
%
11,446
4.3
%
45,761
6.6
%
16,166
3.3
%
Acquisition related costs
(139
)
(262
)
(612
)
(262
)
Total Operating Income
$
33,046
8.3
%
$
11,184
4.2
%
$
45,149
6.5
%
$
15,904
3.3
%
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
(Unaudited)
June 30, 2020
December 31,
2019
Assets
Current assets:
Cash and cash equivalents
$
70,612
$
45,733
Accounts receivable, including
retainage
269,406
248,247
Costs and estimated earnings in excess of
billings
52,068
42,555
Receivables from and equity in
construction joint ventures
12,396
9,196
Other current assets
11,965
11,790
Total current assets
416,447
357,521
Property and equipment, net
119,596
116,030
Operating lease right-of-use assets
17,076
13,979
Goodwill
192,014
191,892
Other intangibles, net
250,620
256,323
Deferred tax asset, net
21,604
26,012
Other non-current assets, net
153
183
Total assets
$
1,017,510
$
961,940
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
131,098
$
137,593
Billings in excess of costs and estimated
earnings
110,934
85,011
Current maturities of long-term debt
54,979
42,473
Current portion of long-term lease
obligations
7,423
7,095
Income taxes payable
3,594
1,212
Accrued compensation
19,075
13,727
Other current liabilities
10,589
6,393
Total current liabilities
337,692
293,504
Long-term debt
367,028
390,627
Long-term lease obligations
9,733
6,976
Members’ interest subject to mandatory
redemption and undistributed earnings
53,751
49,003
Other long-term liabilities
8,221
619
Total liabilities
776,425
740,729
Stockholders’ equity:
Common stock, par value $0.01 per share;
38,000 shares authorized, 28,280 and 28,290 shares issued, 28,034
and 27,772 shares outstanding
283
283
Additional paid in capital
253,820
251,019
Treasury Stock, at cost: 246 and 518
shares
(3,435
)
(6,142
)
Retained deficit
(3,708
)
(25,033
)
Accumulated other comprehensive loss
(7,323
)
(209
)
Total Sterling stockholders’ equity
239,637
219,918
Noncontrolling interests
1,448
1,293
Total stockholders’ equity
241,085
221,211
Total liabilities and stockholders’
equity
$
1,017,510
$
961,940
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June
30,
2020
2019
Cash flows from operating
activities:
Net income
$
21,480
$
9,726
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
16,541
8,473
Amortization of debt issuance costs and
non-cash interest
1,762
1,602
Gain on disposal of property and
equipment
(598
)
(441
)
Deferred taxes
6,223
761
Stock-based compensation expense
6,196
1,670
Loss on interest rate hedge
272
—
Changes in operating assets and
liabilities
385
(26,116
)
Net cash provided by (used in) operating
activities
52,261
(4,325
)
Cash flows from investing
activities:
Capital expenditures
(14,574
)
(4,854
)
Proceeds from sale of property and
equipment
769
802
Net cash used in investing activities
(13,805
)
(4,052
)
Cash flows from financing
activities:
Repayments of debt
(22,644
)
(5,763
)
Distributions to noncontrolling interest
owners
—
(5,100
)
Purchase of treasury stock
—
(3,201
)
Other
9,067
76
Net cash used in financing activities
(13,577
)
(13,988
)
Net change in cash and cash
equivalents
24,879
(22,365
)
Cash and cash equivalents at beginning of
period
45,733
94,095
Cash and cash equivalents at end of
period
$
70,612
$
71,730
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Reconciliation of Non-GAAP
Supplemental Adjusted Financial Data (1)
(In thousands, except per
share data)
(Unaudited)
The Company reports its financial results
in accordance with GAAP. This press release also includes several
Non-GAAP financial measures as defined under the SEC’s Regulation
G. The following tables reconcile certain Non-GAAP financial
measures used in this press release to comparable GAAP financial
measures.
Three Months Ended June 30,
2020
As Reported (GAAP)
Adjustment
Adjusted
(Non-GAAP)
Revenues
$
400,038
$
—
$
400,038
Cost of revenues
(340,439
)
—
(340,439
)
Gross profit
59,599
—
59,599
General and administrative expense
(18,451
)
—
(18,451
)
Intangible asset amortization
(2,866
)
(2,866
)
Acquisition related costs
(139
)
139
—
Other operating expense, net
(5,097
)
—
(5,097
)
Operating income
33,046
139
33,185
Interest income
24
—
24
Interest expense
(7,557
)
—
(7,557
)
Income before income taxes
25,513
139
25,652
Income tax expense (2)
(7,248
)
(39
)
(7,287
)
Net income
18,265
100
18,365
Less: Net income attributable to
noncontrolling interests
(55
)
—
(55
)
Net income attributable to Sterling common
stockholders
$
18,210
$
100
$
18,310
Net income per share attributable to
Sterling common stockholders:
Basic
$
0.65
$
0.01
$
0.66
Diluted
$
0.65
$
—
$
0.65
Weighted average common shares
outstanding:
Basic
27,941
27,941
Diluted
27,957
27,957
(1)
The summary unaudited adjusted financial
data is presented excluding the costs of acquiring Plateau, net of
tax. This presentation is considered a non-GAAP financial measure,
which the Company believes provides a better indication of our
operating results prior to the excluded items.
(2)
Adjusted Non-GAAP income tax expense of
$7,287 includes non-cash federal income tax expense of $5,349.
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Reconciliation of Non-GAAP
Supplemental Adjusted Financial Data (1)
(In thousands, except per
share data)
(Unaudited)
The Company reports its financial results
in accordance with GAAP. This press release also includes several
Non-GAAP financial measures as defined under the SEC’s Regulation
G. The following tables reconcile certain Non-GAAP financial
measures used in this press release to comparable GAAP financial
measures.
Three Months Ended June 30,
2019
As Reported (GAAP)
Adjustment
Adjusted
(Non-GAAP)
Revenues
$
264,086
$
—
$
264,086
Cost of revenues
(238,590
)
—
(238,590
)
Gross profit
25,496
—
25,496
General and administrative expense
(10,174
)
—
(10,174
)
Intangible asset amortization
(600
)
(600
)
Acquisition related costs
(262
)
262
—
Other operating expense, net
(3,276
)
—
(3,276
)
Operating income
11,184
262
11,446
Interest income
291
—
291
Interest expense
(2,904
)
—
(2,904
)
Income before income taxes
8,571
262
8,833
Income tax expense
(706
)
—
(706
)
Net income
7,865
262
8,127
Less: Net income attributable to
noncontrolling interests
(37
)
—
(37
)
Net income attributable to Sterling common
stockholders
$
7,828
$
262
$
8,090
Net income per share attributable to
Sterling common stockholders:
Basic
$
0.30
$
0.01
$
0.31
Diluted
$
0.29
$
0.01
$
0.30
Weighted average common shares
outstanding:
Basic
26,338
26,338
Diluted
26,623
26,623
(1)
The summary unaudited adjusted financial
data is presented excluding the costs of acquiring Plateau, net of
tax. This presentation is considered a non-GAAP financial measure,
which the Company believes provides a better indication of our
operating results prior to the excluded items.
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Reconciliation of Non-GAAP
Supplemental Adjusted Financial Data (1)
(In thousands, except per
share data)
(Unaudited)
The Company reports its financial results
in accordance with GAAP. This press release also includes several
Non-GAAP financial measures as defined under the SEC’s Regulation
G. The following tables reconcile certain Non-GAAP financial
measures used in this press release to comparable GAAP financial
measures.
Six Months Ended June 30,
2020
As Reported (GAAP)
Adjustment
Adjusted
(Non-GAAP)
Revenues
$
696,726
$
—
$
696,726
Cost of revenues
(601,882
)
—
(601,882
)
Gross profit
94,844
—
94,844
General and administrative expense
(36,055
)
—
(36,055
)
Intangible asset amortization
(5,703
)
(5,703
)
Acquisition related costs
(612
)
612
—
Other operating expense, net
(7,325
)
—
(7,325
)
Operating income
45,149
612
45,761
Interest income
123
—
123
Interest expense
(15,360
)
—
(15,360
)
Income before income taxes
29,912
612
30,524
Income tax expense (2)
(8,432
)
(173
)
(8,605
)
Net income
21,480
439
21,919
Less: Net income attributable to
noncontrolling interests
(155
)
—
(155
)
Net income attributable to Sterling common
stockholders
$
21,325
$
439
$
21,764
Net income per share attributable to
Sterling common stockholders:
Basic
$
0.77
$
0.01
$
0.78
Diluted
$
0.76
$
0.02
$
0.78
Weighted average common shares
outstanding:
Basic
27,794
27,794
Diluted
27,887
27,887
(1)
The summary unaudited adjusted financial
data is presented excluding the costs of acquiring Plateau, net of
tax. This presentation is considered a non-GAAP financial measure,
which the Company believes provides a better indication of our
operating results prior to the excluded items.
(2)
Adjusted Non-GAAP income tax expense of
$8,605 includes non-cash federal income tax expense of $6,396.
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Reconciliation of Non-GAAP
Supplemental Adjusted Financial Data (1)
(In thousands, except per
share data)
(Unaudited)
The Company reports its financial results
in accordance with GAAP. This press release also includes several
Non-GAAP financial measures as defined under the SEC’s Regulation
G. The following tables reconcile certain Non-GAAP financial
measures used in this press release to comparable GAAP financial
measures.
Six Months Ended June 30,
2019
As Reported (GAAP)
Adjustment
Adjusted
(Non-GAAP)
Revenues
$
488,035
$
—
$
488,035
Cost of revenues
(443,036
)
—
(443,036
)
Gross profit
44,999
—
44,999
General and administrative expense
(22,063
)
—
(22,063
)
Intangible asset amortization
(1,200
)
(1,200
)
Acquisition related costs
(262
)
262
—
Other operating expense, net
(5,570
)
—
(5,570
)
Operating income
15,904
262
16,166
Interest income
655
—
655
Interest expense
(5,964
)
—
(5,964
)
Income before income taxes
10,595
262
10,857
Income tax expense
(869
)
—
(869
)
Net income
9,726
262
9,988
Less: Net income attributable to
noncontrolling interests
(83
)
—
(83
)
Net income attributable to Sterling common
stockholders
$
9,643
$
262
$
9,905
Net income per share attributable to
Sterling common stockholders:
Basic
$
0.37
$
0.01
$
0.38
Diluted
$
0.36
$
0.01
$
0.37
Weighted average common shares
outstanding:
Basic
26,357
26,357
Diluted
26,657
26,657
(1)
The summary unaudited adjusted financial
data is presented excluding the costs of acquiring Plateau, net of
tax. This presentation is considered a non-GAAP financial measure,
which the Company believes provides a better indication of our
operating results prior to the excluded items.
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Reconciliation of Non-GAAP
Supplemental Adjusted Financial Data (1)
(In thousands, except per
share data)
(Unaudited)
The Company reports its financial results
in accordance with GAAP. This press release also includes several
Non-GAAP financial measures as defined under the SEC’s Regulation
G. The following tables reconcile certain Non-GAAP financial
measures used in this press release to comparable GAAP financial
measures.
Year Ended December 31,
2019
As Reported (GAAP) (2)
Adjustment
Adjusted
(Non-GAAP)
Revenues
$
1,126,278
$
—
$
1,126,278
Cost of revenues
(1,018,484
)
—
(1,018,484
)
Gross profit
107,794
—
107,794
General and administrative expense
(49,200
)
—
(49,200
)
Intangible asset amortization
(4,695
)
(4,695
)
Acquisition related costs
(4,311
)
4,311
—
Other operating expense, net
(11,837
)
—
(11,837
)
Operating income
37,751
4,311
42,062
Interest income
1,142
—
1,142
Interest expense
(16,686
)
—
(16,686
)
Loss on extinguishment of debt
(7,728
)
7,728
—
Income before income taxes
14,479
12,039
26,518
Income tax expense
26,216
(27,398
)
(1,182
)
Net income
40,695
(15,359
)
25,336
Less: Net income attributable to
noncontrolling interests
(794
)
—
(794
)
Net income attributable to Sterling common
stockholders
$
39,901
$
(15,359
)
$
24,542
Net income per share attributable to
Sterling common stockholders:
Basic
$
1.50
$
(0.58
)
$
0.92
Diluted
$
1.47
$
(0.57
)
$
0.90
Weighted average common shares
outstanding:
Basic
26,671
26,671
Diluted
27,119
27,119
(1)
The summary unaudited adjusted financial
data is presented excluding the costs of acquiring Plateau
(including related refinancing) and non-cash taxes. This
presentation is considered a non-GAAP financial measure, which the
Company believes provides a better indication of our operating
results prior to the excluded items.
(2)
Includes a fourth quarter charge for a
legacy project of $10.2 million or $0.36 per diluted share based on
28,201 weighted average common shares outstanding in the
quarter.
STERLING CONSTRUCTION COMPANY,
INC. & SUBSIDIARIES
EBITDA Reconciliation
(In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net income attributable to Sterling common
stockholders
$
18,210
$
7,828
$
21,325
$
9,643
Depreciation and amortization
8,256
4,171
16,541
8,473
Interest expense, net of interest
income
7,533
2,613
15,237
5,309
Income tax (benefit) expense
7,248
706
8,432
869
EBITDA (1)
41,247
15,318
61,535
24,294
Acquisition related costs
139
262
612
262
Adjusted EBITDA (2)
$
41,386
$
15,580
$
62,147
$
24,556
(1)
The Company defines EBITDA as
GAAP net income (loss) attributable to Sterling common
stockholders, adjusted for depreciation and amortization, net
interest expense, taxes, and loss on extinguishment of debt.
(2)
Adjusted EBITDA excludes the impact of
acquisition related costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200803005773/en/
Sterling Construction Company, Inc. Ron Ballschmiede, Chief
Financial Officer 281-214-0800
Investor Relations Counsel: The Equity Group Inc. Fred
Buonocore, CFA 212-836-9607
Sterling Infrastructure (NASDAQ:STRL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sterling Infrastructure (NASDAQ:STRL)
Historical Stock Chart
From Apr 2023 to Apr 2024
