Sterling Construction Sees Q4 Revenues Of $150 Mln To $155 Mln

(RTTNews) - Sterling Construction Company, Inc. (STRL) Tuesday said it expects to report revenues for the three months ended December 31, 2014 in the range of $150 million to $155 million.

Citing weaker than anticipated revenues in its California, Utah and Hawaii operations, along with a continuation of challenging market conditions in its Texas market, the company expects to report a pre-tax loss of between $7 million and $8 million for the quarter.

Full year 2014 revenues are forecast to be between $669 million and $674 million, resulting in a pre-tax loss of between $9 million and $10 million.

Due to the fourth quarter loss, Sterling is in breach of one of the three financial covenants contained in its credit facility and is addressing the matter with its lenders.

Peter MacKenna, President CEO, said, "Results for the final quarter of 2014 were disappointing relative to our expectations back in November. Timing and weather issues impacted some large projects in our Hawaii and California operations, while spot shortages of commodities, over-stretched sub-contractors and vendors, and intense competition for craft labor continued to pressure our Texas operations."

Looking ahead, the firm expects continued growth in revenues and EBITDA in 2015.