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Mar 31, 2020

Sterling Q1 2020 Earnings Report

Reported a decrease in revenue due to the impact of COVID-19, but made progress on strategic initiatives.

Key Takeaways

Sterling reported a decrease in revenue due to the impact of COVID-19, but made progress on strategic initiatives. The company is focused on cost management and cash flow generation.

Revenue decreased due to COVID-19 impact.

Made progress on strategic initiatives.

Focused on cost management.

Focused on cash flow generation.

Total Revenue
$297M
Previous year: $224M
+32.5%
EPS
$0.12
Previous year: $0.07
+71.4%
Gross Margin
20.2%
Gross Profit
$129M
Previous year: $19.5M
+559.4%
Cash and Equivalents
$73.9M
Previous year: $56.8M
+30.2%
Free Cash Flow
$3.42M
Previous year: -$23.1M
-114.8%
Total Assets
$976M
Previous year: $464M
+110.7%

Sterling

Sterling

Sterling Revenue by Geographic Location

Forward Guidance

Due to continued uncertainties surrounding the COVID-19 pandemic, the Company is withdrawing its previously issued full year 2020 guidance. The Company expects Q2 2020 revenue to be down approximately 20% to 25% compared to the prior year.

Positive Outlook

  • Focus on cost management.
  • Focus on cash flow generation.
  • Progress on strategic initiatives.
  • Taking proactive steps to mitigate the impact of COVID-19.
  • Expects to emerge stronger from the crisis.

Challenges Ahead

  • Revenue decreased due to COVID-19 impact.
  • Withdrawing full year 2020 guidance.
  • Q2 2020 revenue expected to be down approximately 20% to 25% compared to the prior year.
  • Continued uncertainties surrounding the COVID-19 pandemic.
  • Impact on demand in certain end markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income