Changes in the revaluation of the liability to noncontrolling interest owners are reflected in retained earnings rather than net income; however, these changes impact basic and diluted net income (loss) per share attributable to Sterling common stockholders. The revaluations for the three and twelve months ended December 31, 2012 resulted in reductions of $(0.17) and $(0.24), respectively, in basic and diluted net income (loss) per share attributable to Sterling common stockholders. The revaluations for the three and twelve months ended December 31, 2011 resulted in a reduction in both periods of $(0.05) in basic and diluted net income (loss) per share attributable to Sterling common stockholders.
Strong Financial Position
We are in very sound financial condition. At December 31, 2012:
- Working capital totaled $87.5 million, including $52.4 million of cash, cash equivalents and short-term investments;
- We had borrowings of $24.0 million on the credit facility as of December 31, 2012 which had been used to fund the acquisition of the remaining 20% noncontrolling interest in Ralph L. Wadsworth Construction Company, LLC completed in December 2012.
- In January 2013, we sold $27.7 million of short-term investments to repay all the borrowings under the $50 million credit facility. The facility has an optional increase amount of $50 million; and,
- Tangible net worth of $157.8 million was more than adequate to support our bonding requirements.
CEO RemarksPeter MacKenna, President and Chief Executive Officer of Sterling Construction commented, “Our 26% growth in revenues for 2012 was in-line with our target, and also as expected, our profitability was impaired as a result of a number of problematic jobs, which we will continue to work through and complete in 2013.” Mr. MacKenna continued, “Since joining Sterling in September 2012, I’ve become increasingly optimistic about the opportunities in front of us. While highway funding and political gridlock are outside of our control, we have made enhancements to our operations that should yield improving performance over time. Just one example would be our recent investments in senior level IT management and infrastructure, which among other things, will provide the underpinnings for the various functional integration projects currently planned or underway.