Sterling Construction Company Inc Reports Operating Results (10-Q)
Sterling Construction Company Inc has a market cap of $257.46 million; its shares were traded at around $16 with a P/E ratio of 8.56 and P/S ratio of 0.66. Sterling Construction Company Inc had an annual average earning growth of 33.9% over the past 10 years.STRL is in the portfolios of George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:At March 31, 2010, our backlog was $618 million as compared to $648 million as of December 31, 2009 and $385 million at March 31, 2009. Our backlog at March 31, 2010 included approximately $64 million of expected revenues for which the contracts had not yet been officially awarded or finalized as to price. Historically, subsequent non-awards of contracts or finalization of contract price have not materially affected our backlog, results of operations or financial condition. Consolidated and Utah backlog include RLW's $192 million share of the estimated revenues related to joint ventures in which RLW is a participant.
At March 31, 2010, our backlog of construction projects included $300 million of our newly acquired operations in Utah. Excluding our Utah operations, our backlog at March 31, 2010, was $318 million as compared to $344 million at December 31, 2009 and $385 million at March 31, 2009.
· depreciation and amortization, which for 2010 totaled $4.0 million, an increase of $0.4 million from 2009 as a result of depreciation of $0.6 million in 2010 on equipment purchased in the RLW acquisition in December, 2009 offset by lower depreciation in 2010 on remaining equipment;
Financing activities in the first three months of 2010 primarily reflect a reduction of $10.0 million in borrowings under our $75.0 million Credit Facility as compared to a reduction of $5.0 million of borrowings in the comparable period in 2009. The amount of borrowings under the Credit Facility is based on the Company's expectations of working capital requirements.
As of March 31, 2010, we had working capital of $107 million, a decrease of $6.5 million over December 31, 2009 and an increase of $8.5 million over March 31, 2009. Increasing working capital is an important element in expanding our bonding capacity, which enables us to bid on larger and longer duration projects. The decrease in working capital in the three months ended March 31, 2010 was the result of the following (in millions):
We have a $75.0 million Credit Facility with a bank syndicate for which Comerica Bank is a participant and agent. The Credit Facility has a maturity date of October 31, 2012, and is secured by all assets of the Company, other than proceeds and other rights under our construction contracts which are pledged to our bond surety. At March 31, 2010, the aggregate borrowings outstanding under the Credit Facility were $30.0 million. Also outstanding was a letter of Credit of $1.7 million, which reduces availability under the Credit Facility. Availability under the Credit Facility was, therefore, $43.3 million without violating any of the financial covenants discussed in the next paragraph.
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