Additionally, the planned long-term operational integration of the acquisitions we’ve made over the past several years is expected to create valuable opportunities, facilitating collaboration between operating units. Finally, our solid financial position affords us the ability to target accretive acquisitions that will expand or deepen our geographic penetration in attractive regions, and provide us with increased capabilities in markets outside but adjacent to our traditional heavy highway focus.”
Mr. MacKenna concluded, “We anticipate limited organic revenue growth in 2013 as government funding remains constrained. Based on our current estimates, the average gross margin of projects in our backlog is below the 7.5% gross margin achieved on 2012 revenues due to the continued drag from operational issues on a number of jobs, particularly in Texas. As the year progresses and these projects are completed, we anticipate improvement in margins. For 2013, SG&A as a percent of revenues should be comparable to 2012, but somewhat higher in dollars to support a more effective, efficient and scaleable organization across our enterprise. Our current budget anticipates capital expenditures to return to 2011 levels. Looking out over the next several years, we believe we can leverage our current fleet, along with leased assets to achieve significantly higher revenues.”
Conference Call and FilingsSterling’s management will hold a conference call to discuss these results and recent corporate developments at 10:00 am ET/9:00 am CT, today, Monday, March 18, 2013. Interested parties may participate in the call by dialing (201) 493-6744 or (877) 445-9755 ten minutes before the conference call is scheduled to begin, and asking for the Sterling Construction call. To listen to a simultaneous webcast of the call, please go to the Company’s website at www.sterlingconstructionco.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. We suggest listeners use Microsoft Explorer as their web browser. 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 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.