Sterling Construction Swings To Loss In Q4 - Update

(RTTNews) - Sterling Construction Co. Inc. (STRL) Monday reported a loss for the fourth quarter compared to a profit last year, reflecting mainly write-downs on three projects in Texas.

For the fourth quarter, net loss attributable to stockholders was $52.14 million or $3.52 per share, compared to a net income of $2.93 million or $0.01 per share in the prior-year quarter. The company said its recent-quarter results included a net pre-tax charge of $36.9 million, mainly attributable to write-downs on three large Texas projects awarded prior to 2012.

Net loss per share also included negative impact from revaluation of liability to non-controlling interest owners of $0.40 per share. Excluding impact of the valuation allowance, the net loss per share attributable to stockholders for the recent quarter was $1.83.

On average, four 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.

The heavy civil construction company engaged in building, reconstruction, and repair of transportation and water infrastructure projects said its quarterly revenues fell 20.4 percent to $125.92 million from $158.09 million reported last year. Three analysts estimated revenues of $153.07 million for the quarter.

According to the firm, the fall in revenue was mainly due 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.

Income tax expense was $14.15 million, up from $1.57 million a year earlier.

Total backlog as at December 31, 2013 was $687 million, up 4.7 percent from backlog levels a year earlier.

Looking ahead, Peter MacKenna, president and chief executive officer of the company said, "Entering 2014 we believe we are well positioned to deliver significant improvement in profitability."

STRL closed Friday's regular trading at $9.95, up 3.65 percent on the Nasdaq.