Sterling Construction Slips To Loss In Q4 - Quick Facts

(RTTNews) - Sterling Construction Company Inc. (STRL) said that its fourth-quarter net loss attributable to common stockholders was $52.1 million or $3.52 compared to net income of $2.9 million or $0.01 per share in the prior year quarter.

Due to the charges taken on the Texas projects in the fourth quarter, at December 31, 2013 the Company was in a cumulative three-year loss position and, as a result, management determined that it was necessary to recognize a non-cash $28.2 million tax valuation allowance. The valuation allowance has no impact on the Company's cash position and, as profits are realized in future periods, the deferred tax asset could be adjusted upward and net operating losses will be available to reduce taxes over 20 years.

Also included in the 2013 net loss per share attributable to common stockholders was the negative impact from the revaluation of the liability to noncontrolling interest owners of $0.40 per share.

The prior year quarter result included a $0.17 per share negative impact from the revaluation of the liability to noncontrolling interest owners.

Excluding the impact of the valuation allowance, the net loss per share attributable to common stockholders for the recent quarter would have been $1.83. Analysts polled by Thomson Reuters expected the company to report a loss of $1.47 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues were $125.9 million down from $158.1 million in the prior year quarter. Three analysts estimated revenues of $153.07 million for the quarter.

Revenues for the fourth quarter of 2013 decreased 20.4% compared to the fourth quarter of 2012 due largely to the write-downs in the latest-year on the three projects in Texas, and the impact of weather-related delays and issues with subcontractors on these jobs. Additionally, the fourth quarter of 2012 benefitted from the completion of several large projects in Utah, particularly the I-15 CORE Reconstruction Joint Venture Project, in which the Company's Utah subsidiary had a $136 million revenue interest.

Peter MacKenna, President and Chief Executive Officer said, "Entering 2014 we believe we are well positioned to deliver significant improvement in profitability. Our current mix of projects in backlog points to meaningful sustainable gross margin expansion over the next several quarters. With several key executive changes and process-improvements largely completed, we expect general and administrative expenses to return to 2012 levels in the 6% of revenues range. Capital expenditures should be in-line with those of 2013...... we begin 2014 confident in our ability to achieve better overall profitability, which we expect to lead to increasing value for our shareholders."