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Dec 31, 2019
Sterling Q4 2019 Earnings Report
Reported strong Q4 results, driven by the Plateau acquisition and growth in revenues.
Key Takeaways
Sterling Construction Company reported a revenue increase of $91.4 million compared to the prior year quarter, primarily driven by $84.6 million generated from Plateau. Net income attributable to Sterling common stockholders was $22.3 million, compared to $5.6 million in the same quarter of the previous year. The Plateau acquisition was immediately accretive to the fourth quarter results.
Revenues were $346.5 million compared to $255.2 million.
Net income attributable to Sterling common stockholders was $22.3 million compared to $5.6 million.
Adjusted EBITDA was $20.2 million compared to $12.7 million.
Combined Backlog at December 31, 2019 was $1.3 billion, up from $1.1 billion at December 31, 2018.
Forward Guidance
The company expects to generate full year 2020 revenues of between $1.375 billion and $1.4 billion. With the integration of Plateau into Sterling, the company expects that its blended gross margin will rise to the 13% to 14% range. The company expects 2020 EBITDA to be $125 million to $135 million.
Positive Outlook
- Anticipated contribution from Plateau.
- Record high Backlog.
- Current booking trends.
- Market strength.
- Improved execution.
Challenges Ahead
- Effective income tax rate of approximately 26%.
- Non-cash income tax expense of approximately 21% of pretax income.
- No major positive changes in government investment in infrastructure assumed.
- Acquisition related costs of $2 million to $3 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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