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Sterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling” or “the Company”) today announced financial results for the second quarter ended June 30, 2013.
Financial results for the second quarter of 2013 were depressed by a net pre-tax charge of $18.0 million, of which $13.9 million was the result of site-specific conditions affecting three projects, two in Texas and one in Arizona, that encountered unanticipated costs in excess of initial project estimates. The remaining $4.1 million loss was primarily related to less significant estimated losses on jobs awarded prior to 2012. On an after-tax basis, the total charge accounted for $11.6 million or $0.70 per diluted share of the net loss attributable to common stockholders.
Second Quarter 2013 Financial Results Compared to Second Quarter 2012:
Revenues were $133.4 million, compared to $168.7 million;
Gross deficit was 12.5% of revenues compared to a gross margin of 9.0%;
General and administrative expenses as a percentage of revenues were 7.1% compared to 5.0%;
Operating loss was $26.1 million compared to operating income of $8.2 million;
Net loss attributable to Sterling common stockholders was $17.0 million compared to net income $3.3 million; and,
Net loss per diluted share attributable to common stockholders was $0.93 compared to net income per diluted share of $0.15.
Second Quarter 2013 Highlights:
Bookings of $154 million were up 133% from the second quarter of 2012 and increased 4.0% from the first quarter of 2013, representing a book-to-bill ratio of 1.15:1;
Total backlog as of June 30, 2013 was $714 million, an increase of 8.8% since December 31, 2012, and up 3.0% since March 31, 2013;
At quarter end the backlog of projects awarded after 2011 was 78% of total backlog, or $560 million with an average gross margin of 6.3%; the backlog of projects awarded during 2013 was 37% of total backlog, or $265 million and carries an average gross margin of 8.0%; and,
Total backlog at June 30, 2013 excluded $107 million of projects where we were the apparent low bidder but had not yet been awarded the contract; the average gross margin of these awards is approximately 13.1%.
Revenues for the second quarter 2013 decreased 21.0% compared to the second quarter of 2012, primarily due to the completion of several large projects in Utah – the largest project being the $1.1 billion I-15 CORE Reconstruction Joint Venture Project, of which the Company’s Utah subsidiary had a 12.5% interest, or approximately $136 million.