Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-31993 | |
Entity Registrant Name | STERLING CONSTRUCTION COMPANY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 25-1655321 | |
Entity Address, Address Line One | 1800 Hughes Landing Blvd. | |
Entity Address, City or Town | The Woodlands | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | 281 | |
Local Phone Number | 214-0800 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | STRL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,068,334 | |
Entity Central Index Key | 0000874238 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 400,038 | $ 264,086 | $ 696,726 | $ 488,035 |
Cost of revenues | (340,439) | (238,590) | (601,882) | (443,036) |
Gross profit | 59,599 | 25,496 | 94,844 | 44,999 |
General and administrative expense | (18,451) | (10,174) | (36,055) | (22,063) |
Intangible asset amortization | (2,866) | (600) | (5,703) | (1,200) |
Acquisition related costs | (139) | (262) | (612) | (262) |
Other operating expense, net | (5,097) | (3,276) | (7,325) | (5,570) |
Operating income | 33,046 | 11,184 | 45,149 | 15,904 |
Interest income | 24 | 291 | 123 | 655 |
Interest expense | (7,557) | (2,904) | (15,360) | (5,964) |
Income before income taxes | 25,513 | 8,571 | 29,912 | 10,595 |
Income tax expense | (7,248) | (706) | (8,432) | (869) |
Net income | 18,265 | 7,865 | 21,480 | 9,726 |
Less: Net income attributable to noncontrolling interests | (55) | (37) | (155) | (83) |
Net income attributable to Sterling common stockholders | $ 18,210 | $ 7,828 | $ 21,325 | $ 9,643 |
Net income per share attributable to Sterling common stockholders: | ||||
Basic (in dollars per share) | $ 0.65 | $ 0.30 | $ 0.77 | $ 0.37 |
Diluted (in dollars per share) | $ 0.65 | $ 0.29 | $ 0.76 | $ 0.36 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 27,941 | 26,338 | 27,794 | 26,357 |
Diluted (in shares) | 27,957 | 26,623 | 27,887 | 26,657 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,265 | $ 7,865 | $ 21,480 | $ 9,726 |
Loss on interest rate swap, net of tax | (53) | 0 | (7,114) | 0 |
Total comprehensive income | 18,212 | 7,865 | 14,366 | 9,726 |
Less: Comprehensive income attributable to noncontrolling interests | (55) | (37) | (155) | (83) |
Comprehensive income attributable to Sterling common stockholders | $ 18,157 | $ 7,828 | $ 14,211 | $ 9,643 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents ($15,877 and $7,538 related to variable interest entities (“VIEs”)) | $ 70,612 | $ 45,733 |
Accounts receivable, including retainage ($39,085 and $24,642 related to VIEs) | 269,406 | 248,247 |
Costs and estimated earnings in excess of billings ($5,012 and $8,328 related to VIEs) | 52,068 | 42,555 |
Receivables from and equity in construction joint ventures ($8,302 and $7,406 related to VIEs) | 12,396 | 9,196 |
Other current assets ($110 and $503 related to VIEs) | 11,965 | 11,790 |
Total current assets | 416,447 | 357,521 |
Property and equipment, net ($6,000 and $5,619 related to VIEs) | 119,596 | 116,030 |
Operating lease right-of-use assets ($3,951 and $3,817 related to VIEs) | 17,076 | 13,979 |
Goodwill ($1,501 and $1,501 related to VIEs) | 192,014 | 191,892 |
Other intangibles, net | 250,620 | 256,323 |
Deferred tax asset, net | 21,604 | 26,012 |
Other non-current assets, net | 153 | 183 |
Total assets | 1,017,510 | 961,940 |
Current liabilities: | ||
Accounts payable ($21,943 and $18,213 related to VIEs) | 131,098 | 137,593 |
Billings in excess of costs and estimated earnings ($15,514 and $9,649 related to VIEs) | 110,934 | 85,011 |
Current maturities of long-term debt ($6,793 and $39 related to VIEs) | 54,979 | 42,473 |
Current portion of long-term lease obligations ($1,792 and $1,838 related to VIEs) | 7,423 | 7,095 |
Income taxes payable | 3,594 | 1,212 |
Accrued compensation ($2,965 and $1,521 related to VIEs) | 19,075 | 13,727 |
Other current liabilities ($1,587 and $1,429 related to VIEs) | 10,589 | 6,393 |
Total current liabilities | 337,692 | 293,504 |
Long-term debt ($9 and $2 related to VIEs) | 367,028 | 390,627 |
Long-term lease obligations ($2,159 and $1,979 related to VIEs) | 9,733 | 6,976 |
Members’ interest subject to mandatory redemption and undistributed earnings | 53,751 | 49,003 |
Other long-term liabilities ($509 and $0 related to VIEs) | 8,221 | 619 |
Total liabilities | 776,425 | 740,729 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock, par value $0.01 per share; 38,000 shares authorized, 28,280 and 28,290 shares issued, 28,034 and 27,772 shares outstanding | 283 | 283 |
Additional paid in capital | 253,820 | 251,019 |
Treasury Stock, at cost: 246 and 518 shares | (3,435) | (6,142) |
Retained deficit | (3,708) | (25,033) |
Accumulated other comprehensive loss | (7,323) | (209) |
Total Sterling stockholders’ equity | 239,637 | 219,918 |
Noncontrolling interests | 1,448 | 1,293 |
Total stockholders’ equity | 241,085 | 221,211 |
Total liabilities and stockholders’ equity | $ 1,017,510 | $ 961,940 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents ($15,877 and $7,538 related to variable interest entities (“VIEs”)) | $ 70,612 | $ 45,733 |
Accounts receivable, including retainage ($39,085 and $24,642 related to VIEs) | 269,406 | 248,247 |
Costs and estimated earnings in excess of billings ($5,012 and $8,328 related to VIEs) | 52,068 | 42,555 |
Receivables from and equity in construction joint ventures ($8,302 and $7,406 related to VIEs) | 12,396 | 9,196 |
Other current assets ($110 and $503 related to VIEs) | 11,965 | 11,790 |
Property and equipment, net ($6,000 and $5,619 related to VIEs) | 119,596 | 116,030 |
Operating lease right-of-use assets ($3,951 and $3,817 related to VIEs) | 17,076 | 13,979 |
Goodwill ($1,501 and $1,501 related to VIEs) | 192,014 | 191,892 |
Accounts payable ($21,943 and $18,213 related to VIEs) | 131,098 | 137,593 |
Billings in excess of costs and estimated earnings ($15,514 and $9,649 related to VIEs) | 110,934 | 85,011 |
Current maturities of long-term debt ($6,793 and $39 related to VIEs) | 54,979 | 42,473 |
Current portion of long-term lease obligations ($1,792 and $1,838 related to VIEs) | 7,423 | 7,095 |
Accrued compensation ($2,965 and $1,521 related to VIEs) | 19,075 | 13,727 |
Other current liabilities ($1,587 and $1,429 related to VIEs) | 10,589 | 6,393 |
Long-term debt ($9 and $2 related to VIEs) | 367,028 | 390,627 |
Long-term lease obligations ($2,159 and $1,979 related to VIEs) | 9,733 | 6,976 |
Other long-term liabilities ($509 and $0 related to VIEs) | $ 8,221 | $ 619 |
Common Stock, Par Value (in usd per share) | $ 0.01 | $ 0.01 |
Common Stock Authorized (in shares) | 38,000 | 38,000 |
Common Stock Issued (in shares) | 28,280 | 28,290 |
Common Stock Outstanding (in shares) | 28,034 | 27,772 |
Treasury stock (in shares) | 246 | 518 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents ($15,877 and $7,538 related to variable interest entities (“VIEs”)) | $ 15,877 | $ 7,538 |
Accounts receivable, including retainage ($39,085 and $24,642 related to VIEs) | 39,085 | 24,642 |
Costs and estimated earnings in excess of billings ($5,012 and $8,328 related to VIEs) | 5,012 | 8,328 |
Receivables from and equity in construction joint ventures ($8,302 and $7,406 related to VIEs) | 8,302 | 7,406 |
Other current assets ($110 and $503 related to VIEs) | 110 | 503 |
Property and equipment, net ($6,000 and $5,619 related to VIEs) | 6,000 | 5,619 |
Operating lease right-of-use assets ($3,951 and $3,817 related to VIEs) | 3,951 | 3,817 |
Goodwill ($1,501 and $1,501 related to VIEs) | 1,501 | 1,501 |
Accounts payable ($21,943 and $18,213 related to VIEs) | 21,943 | 18,213 |
Billings in excess of costs and estimated earnings ($15,514 and $9,649 related to VIEs) | 15,514 | 9,649 |
Current maturities of long-term debt ($6,793 and $39 related to VIEs) | 6,793 | 39 |
Current portion of long-term lease obligations ($1,792 and $1,838 related to VIEs) | 1,792 | 1,838 |
Accrued compensation ($2,965 and $1,521 related to VIEs) | 2,965 | 1,521 |
Other current liabilities ($1,587 and $1,429 related to VIEs) | 1,587 | 1,429 |
Long-term debt ($9 and $2 related to VIEs) | 9 | 2 |
Long-term lease obligations ($2,159 and $1,979 related to VIEs) | 2,159 | 1,979 |
Other long-term liabilities ($509 and $0 related to VIEs) | $ 509 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 21,480 | $ 9,726 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 16,541 | 8,473 |
Amortization of debt issuance costs and non-cash interest | 1,762 | 1,602 |
Gain on disposal of property and equipment | (598) | (441) |
Deferred taxes | 6,223 | 761 |
Stock-based compensation expense | 6,196 | 1,670 |
Loss on interest rate hedge | 272 | 0 |
Changes in operating assets and liabilities (Note 17) | 385 | (26,116) |
Net cash provided by (used in) operating activities | 52,261 | (4,325) |
Cash flows from investing activities: | ||
Capital expenditures | (14,574) | (4,854) |
Proceeds from sale of property and equipment | 769 | 802 |
Net cash used in investing activities | (13,805) | (4,052) |
Cash flows from financing activities: | ||
Repayments of debt | (22,644) | (5,763) |
Distributions to noncontrolling interest owners | 0 | (5,100) |
Purchase of treasury stock | 0 | (3,201) |
Other | 9,067 | 76 |
Net cash used in financing activities | (13,577) | (13,988) |
Net change in cash and cash equivalents | 24,879 | (22,365) |
Cash and cash equivalents at beginning of period | 45,733 | 94,095 |
Cash and cash equivalents at end of period | $ 70,612 | $ 71,730 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Treasury Stock | Retained Deficit | Accumulated Other Comprehensive Loss | Total Sterling Stockholders’ Equity | Non-controlling Interests |
Beginning balance at Dec. 31, 2018 | $ 172,260 | $ 271 | $ 233,795 | $ (4,731) | $ (64,934) | $ 0 | $ 164,401 | $ 7,859 |
Beginning balance (in shares) at Dec. 31, 2018 | 26,597 | 467 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,861 | 1,815 | 1,815 | 46 | ||||
Stock-based compensation (in shares) | (1) | |||||||
Stock-based compensation | 1,021 | 1,021 | 1,021 | |||||
Distributions to owners | (5,100) | 0 | (5,100) | |||||
Purchase of treasury stock (in shares) | 250 | 250 | ||||||
Purchase of treasury stock | (3,201) | $ (3,201) | (3,201) | |||||
Issuance of stock (in shares) | 130 | (130) | ||||||
Issuance of stock | 0 | (1,314) | $ 1,314 | 0 | ||||
Shares withheld for taxes (in shares) | 52 | 45 | ||||||
Shares withheld for taxes | (564) | $ (564) | (564) | |||||
Ending balance at Mar. 31, 2019 | 166,277 | $ 271 | 233,502 | $ (7,182) | (63,119) | 0 | 163,472 | 2,805 |
Ending balance (in shares) at Mar. 31, 2019 | 26,424 | 632 | ||||||
Beginning balance at Dec. 31, 2018 | 172,260 | $ 271 | 233,795 | $ (4,731) | (64,934) | 0 | 164,401 | 7,859 |
Beginning balance (in shares) at Dec. 31, 2018 | 26,597 | 467 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 9,726 | |||||||
Loss on interest rate swap, net of tax | 0 | |||||||
Ending balance at Jun. 30, 2019 | 174,693 | $ 271 | 233,559 | $ (6,688) | (55,291) | 0 | 171,851 | 2,842 |
Ending balance (in shares) at Jun. 30, 2019 | 26,466 | 583 | ||||||
Beginning balance at Mar. 31, 2019 | 166,277 | $ 271 | 233,502 | $ (7,182) | (63,119) | 0 | 163,472 | 2,805 |
Beginning balance (in shares) at Mar. 31, 2019 | 26,424 | 632 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 7,865 | 7,828 | 7,828 | 37 | ||||
Loss on interest rate swap, net of tax | 0 | |||||||
Stock-based compensation | 649 | 649 | 649 | |||||
Issuance of stock (in shares) | 49 | (49) | ||||||
Issuance of stock | 0 | (494) | $ 494 | 0 | ||||
Shares withheld for taxes (in shares) | 7 | |||||||
Shares withheld for taxes | (98) | (98) | (98) | |||||
Ending balance at Jun. 30, 2019 | 174,693 | $ 271 | 233,559 | $ (6,688) | (55,291) | 0 | 171,851 | 2,842 |
Ending balance (in shares) at Jun. 30, 2019 | 26,466 | 583 | ||||||
Beginning balance at Dec. 31, 2019 | 221,211 | $ 283 | 251,019 | $ (6,142) | (25,033) | (209) | 219,918 | 1,293 |
Beginning balance (in shares) at Dec. 31, 2019 | 27,772 | 518 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 3,215 | 3,115 | 3,115 | 100 | ||||
Loss on interest rate swap, net of tax | (7,061) | (7,061) | (7,061) | |||||
Stock-based compensation (in shares) | 0 | |||||||
Stock-based compensation | 2,234 | 2,234 | 2,234 | |||||
Issuance of stock (in shares) | 248 | (248) | ||||||
Issuance of stock | 103 | (2,460) | $ 2,563 | 103 | ||||
Shares withheld for taxes (in shares) | 54 | 46 | ||||||
Shares withheld for taxes | (772) | (104) | $ (668) | (772) | ||||
Ending balance at Mar. 31, 2020 | 218,930 | $ 283 | 250,689 | $ (4,247) | (21,918) | (7,270) | 217,537 | 1,393 |
Ending balance (in shares) at Mar. 31, 2020 | 27,966 | 316 | ||||||
Beginning balance at Dec. 31, 2019 | 221,211 | $ 283 | 251,019 | $ (6,142) | (25,033) | (209) | 219,918 | 1,293 |
Beginning balance (in shares) at Dec. 31, 2019 | 27,772 | 518 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 21,480 | |||||||
Loss on interest rate swap, net of tax | $ (7,114) | |||||||
Stock-based compensation (in shares) | 211 | |||||||
Shares withheld for taxes (in shares) | 49 | |||||||
Shares withheld for taxes | $ (700) | |||||||
Ending balance at Jun. 30, 2020 | $ 241,085 | $ 283 | 253,820 | $ (3,435) | (3,708) | (7,323) | 239,637 | 1,448 |
Ending balance (in shares) at Jun. 30, 2020 | 28,034 | 246 | ||||||
Beginning balance at Mar. 31, 2020 | 218,930 | $ 283 | 250,689 | $ (4,247) | (21,918) | (7,270) | 217,537 | 1,393 |
Beginning balance (in shares) at Mar. 31, 2020 | 27,966 | 316 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 18,265 | 18,210 | 18,210 | 55 | ||||
Loss on interest rate swap, net of tax | (53) | (53) | (53) | |||||
Stock-based compensation | 3,962 | 3,962 | 3,962 | |||||
Issuance of stock (in shares) | 73 | (73) | ||||||
Issuance of stock | 104 | (740) | $ 844 | 104 | ||||
Shares withheld for taxes (in shares) | 5 | 3 | ||||||
Shares withheld for taxes | (50) | (18) | $ (32) | (50) | ||||
Other | (73) | (73) | (73) | |||||
Ending balance at Jun. 30, 2020 | $ 241,085 | $ 283 | $ 253,820 | $ (3,435) | $ (3,708) | $ (7,323) | $ 239,637 | $ 1,448 |
Ending balance (in shares) at Jun. 30, 2020 | 28,034 | 246 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2020 | |
Nature of Operations [Abstract] | |
Nature of Operations | 1. NATURE OF OPERATIONS Business Summary Sterling Construction Company, Inc., (“Sterling,” “the Company,” “we,” “our” or “us”), a Delaware corporation, is a construction company that has been involved in the construction industry since its founding in 1955. The Company operates through a variety of subsidiaries within three operating groups specializing in heavy civil, specialty services, and residential projects in the United States (the “U.S.”), primarily across the southern U.S., the Rocky Mountain States, California and Hawaii, as well as other areas with strategic construction opportunities. Heavy civil includes infrastructure and rehabilitation projects for highways, roads, bridges, airfields, ports, light rail, water, wastewater and storm drainage systems. Specialty services projects include construction site excavation and drainage, drilling and blasting for excavation, foundations for multi-family homes, parking structures and other commercial concrete projects. Residential projects include concrete foundations for single-family homes. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Presentation Basis— The accompanying Condensed Financial Statements are presented in accordance with accounting policies generally accepted in the United States (“GAAP”) and reflect all wholly owned subsidiaries and those entities the Company is required to consolidate. See the “Consolidated 50% Owned Subsidiaries” and “Construction Joint Ventures” section of this Note for further discussion of the Company’s consolidation policy for those entities that are not wholly owned. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Values presented within tables (excluding per share data) are in thousands. Reclassifications have been made to historical financial data in the Condensed Consolidated Financial Statements to conform to the current year presentation. Estimates and Judgments— The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Certain accounting estimates of the Company require a higher degree of judgment than others in their application. These include the recognition of revenue and earnings from construction contracts over time, the valuation of long-lived assets, goodwill, income taxes, and purchase accounting estimates, including goodwill and other intangible assets. Management continually evaluates all of its estimates and judgments based on available information and experience; however, actual results could differ from these estimates. Significant Accounting Policies Consistent with Regulation S-X Rule 10-1(a), the Company has omitted significant accounting policies in this quarterly report that would duplicate the disclosures contained in the Company’s annual report on Form 10-K for the year ended December 31, 2019 under “Part II, Item 8. - Notes to Consolidated Financial Statements”. Receivables, including Retainage— Receivables are generally based on amounts billed to the customer in accordance with contractual provisions. Many of the contracts under which the Company performs work also contain retainage provisions. Retainage refers to that portion of our billings held for payment by the customer pending satisfactory completion of the project. Unless reserved, the Company assumes that all amounts retained by customers under such provisions are fully collectible. Retainage on active contracts is classified as a current asset regardless of the term of the contract and is generally collected within one year of the completion of a contract. At June 30, 2020 and December 31, 2019, receivables included $72,800 and $79,400 of retainage, respectively. Receivables are written off based on individual credit evaluation and specific circumstances of the customer, when such treatment is warranted. The Company performs a review of outstanding receivables, historical collection information and existing economic conditions to determine if there are potential uncollectible receivables. At both June 30, 2020 and December 31, 2019, our allowance for doubtful accounts against contracts receivable was zero. Cash and Restricted cash— Our cash is comprised of highly liquid investments with maturities of three months or less. Restricted cash of approximately $4,900 and $4,800 is included in “Other current assets” on the Condensed Consolidated Balance Sheets at June 30, 2020 and December 31, 2019, respectively. This primarily represents cash deposited by the Company into separate accounts and designated as collateral for standby letters of credit in the same amount in accordance with contractual agreements. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 to add the guidance in ASC 326 on the impairment of financial instruments. The ASU introduces an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. The amendments in the ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2020 as required and noted no material impact to the Company’s Condensed Consolidated Financial Statements. |
Plateau Acquisition
Plateau Acquisition | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Plateau Acquisition | 3. PLATEAU ACQUISITION General— As more fully described in Sterling’s 2019 Annual Report, on October 2, 2019, Sterling consummated the acquisition (the “Plateau Acquisition”) of all of the issued and outstanding shares of capital stock of LK Gregory Construction, Inc. and Plateau Excavation, Inc., and all of the issued and outstanding equity interests in DeWitt Excavation, LLC. The Plateau Acquisition is accounted for using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations . Purchase Consideration— Sterling completed the Plateau Acquisition for a purchase price of $427,533, net of cash acquired, detailed as follows: Cash consideration transferred, net of $2,425 of cash acquired $ 375,000 Target working capital adjustment 21,323 Equity consideration transferred (1,245 shares at $13.01 per share (1) ) 16,195 Note payable to seller (See Note 9 - Debt) 10,000 Tax basis election 5,015 Total consideration $ 427,533 (1) Sterling’s closing stock price on October 1, 2019 Preliminary Purchase Price Allocation— The aggregate purchase price noted above was allocated to the assets and liabilities acquired based upon their estimated fair values at the acquisition closing date, which were based, in part, upon an external preliminary appraisal and valuation of certain assets, including specifically identified intangible assets. The excess of the purchase price over the preliminary estimated fair value of the net tangible and identifiable intangible assets acquired totaling $106,784, was recorded as goodwill. The following table summarizes our purchase price allocation at the acquisition closing date, net of cash acquired: Net tangible assets: Accounts receivable, including retainage $ 81,921 Costs and estimated earnings in excess of billings 974 Other current assets 249 Property and equipment, net 65,492 Other non-current assets, net 10 Accounts payable (22,039) Billings in excess of costs and estimated earnings (16,540) Other current and non-current liabilities (7,918) Total net tangible assets 102,149 Identifiable intangible assets 218,600 Goodwill 106,784 Total consideration transferred $ 427,533 The purchase price allocation above is subject to further change when additional information is obtained. We have not finalized our assessment of the fair values primarily for intangible assets and property and equipment. We intend to finalize the purchase price allocation as soon as practicable within the measurement period, but in no event later than one year following the closing date of the Plateau Acquisition. Our final purchase price allocation may result in additional adjustments to various other assets and liabilities, including the residual amount allocated to goodwill during the measurement period. Identifiable Intangible Assets — Intangible assets identified as part of the Plateau Acquisition are reflected in the table below and are recorded at their estimated fair value, as determined by the Company’s management, based on available information which includes a preliminary valuation from external experts. The estimated useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. Weighted Average Life (Years) October 2, 2019 Customer relationships 25 $ 191,800 Trade name 25 24,800 Non-compete agreements 5 2,000 Total $ 218,600 Supplemental Pro Forma Information (Unaudited) — The following unaudited pro forma combined financial information (“the pro forma financial information”) gives effect to the Plateau Acquisition, accounted for as a business combination using the purchase method of accounting. The pro forma financial information reflects the Plateau Acquisition and related events as if they occurred at the beginning of the period, and gives effect to pro forma events that are: directly attributable to the acquisition, factually supportable and expected to have a continuing impact on the combined results of Sterling and Plateau following the Plateau Acquisition. The pro forma financial information includes adjustments to: (1) exclude transaction costs that were included in historical results and are expected to be non-recurring, (2) include additional intangibles amortization and net interest expense associated with the Plateau Acquisition and (3) include the pro forma results of Plateau for the three and six months ended ended June 30, 2019. This pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the pro forma events taken place on the dates indicated. Further, the pro forma financial information does not purport to project the future operating results of the combined company following the Plateau Acquisition. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Pro forma revenue $ 347,862 $ 630,471 Pro forma net income attributable to Sterling $ 20,992 $ 28,323 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Customers | 4. REVENUE FROM CUSTOMERS Backlog The Company had the following backlog, by segment: June 30, December 31, Heavy Civil Backlog $ 874,822 $ 834,049 Specialty Services Backlog 258,992 233,976 Total Heavy Civil and Specialty Services Backlog $ 1,133,814 $ 1,068,025 The Company expects to recognize approximately 63% of its backlog as revenue during the next twelve months, and the balance thereafter. Revenue Disaggregation The following tables present the Company’s revenue disaggregated by major end market and contract type: Three Months Ended June 30, Six Months Ended June 30, Revenue by major end market 2020 2019 2020 2019 Heavy Highway $ 152,526 $ 129,964 $ 248,900 $ 223,574 Aviation 34,867 37,061 63,324 66,998 Water Containment and Treatment 16,529 15,515 38,338 30,749 Other 16,526 17,696 25,501 29,420 Heavy Civil Revenue $ 220,448 $ 200,236 $ 376,063 $ 350,741 Land Development $ 105,639 $ — $ 181,884 $ — Commercial 30,064 27,894 58,542 58,573 Specialty Services Revenue $ 135,703 $ 27,894 $ 240,426 $ 58,573 Residential Revenue $ 43,887 $ 35,956 $ 80,237 $ 78,721 Revenues $ 400,038 $ 264,086 $ 696,726 $ 488,035 Revenue by contract type Fixed-Unit Price $ 203,692 $ 185,297 $ 345,431 $ 326,516 Lump Sum 147,460 43,666 261,712 82,798 Residential and Other 48,886 35,123 89,583 78,721 Revenues $ 400,038 $ 264,086 $ 696,726 $ 488,035 Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with lump-sum contracts. However, these types of contracts offer additional profits if the work is completed for less than originally estimated. Under fixed-unit price contracts, the Company’s profit may vary if actual labor-hour costs vary significantly from the negotiated rates. Also, because some contracts can provide little or no fee for managing material costs, the components of contract cost can impact profitability. Variable Consideration The Company has projects that it is in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with its customers. The Company is proceeding with its contractual rights to recoup additional costs incurred from its customers based on completing work associated with change orders, including change orders with pending change order pricing, or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work. Unapproved change order and claim information has been provided to the Company’s customers and negotiations with the customers are ongoing. If additional progress with an acceptable resolution is not reached, legal action will be taken. Based upon the Company’s review of the provisions of its contracts, specific costs incurred and other related evidence supporting the unapproved change orders and claims, together in some cases as necessary with the views of the Company’s outside claim consultants, the Company concluded it was appropriate to include in project price amounts of $8,200 and $3,000, at June 30, 2020 and December 31, 2019, respectively, relating to unapproved change orders and claims. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Contract Estimates Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes such profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials and the performance of subcontractors. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract penalty provisions and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. |
Consolidated 50% Owned Subsidia
Consolidated 50% Owned Subsidiaries | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Consolidated 50% Owned Subsidiaries | 5. CONSOLIDATED 50% OWNED SUBSIDIARIES The Company has 50% ownership interests in two subsidiaries (“Myers” and “RHB”) that it fully consolidates as a result of its exercise of control over the entities. The earnings attributable to the 50% portions the Company does not own were approximately $4,600 and $6,300 for the three and six months ended June 30, 2020, respectively, and $1,400 and $2,700 for the three and six months ended June 30, 2019, respectively, and are eliminated within “Other operating expense, net” in the Condensed Consolidated Statements of Operations. Any undistributed earnings for partners are included in “Members’ interest subject to mandatory redemption and undistributed earnings” within the Condensed Consolidated Balance Sheets and are mandatorily payable at the time of the noncontrolling owners’ death or permanent disability. These two subsidiaries have individual mandatory redemption provisions which, under circumstances outlined in the partner agreements, are certain to occur and obligate the Company to purchase each partner’s remaining 50% interests for $20,000 ($40,000 in the aggregate). The Company has purchased two separate $20,000 death and permanent total disability insurance policies to mitigate the Company’s cash draw if such events were to occur. These purchase obligations are recorded in “Members’ interest subject to mandatory redemption and undistributed earnings” on the Condensed Consolidated Balance Sheets. The liability consists of the following: June 30, December 31, Members’ interest subject to mandatory redemption $ 40,000 $ 40,000 Net accumulated earnings 13,751 9,003 Total liability $ 53,751 $ 49,003 The Company must determine whether any of its entities, including these two 50% owned subsidiaries, in which it participates, is a VIE. The Company determined Myers is a VIE, as the Company is the primary beneficiary, as pursuant to the terms of the Myers Operating Agreement the Company is exposed to the majority of potential losses of the partnership. Summary financial information for Myers is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 54,364 $ 59,664 $ 98,726 $ 102,078 Operating income $ 1,049 $ 2,004 $ 1,204 $ 2,281 Net income $ 1,051 $ 2,009 $ 1,209 $ 2,291 |
Construction Joint Ventures
Construction Joint Ventures | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Construction Joint Ventures | 6. CONSTRUCTION JOINT VENTURES The Company participates in joint ventures with other major construction companies and other partners, typically for large, technically complex projects, including design-build projects, when it is desirable to share risk and resources in order to seek a competitive advantage. Joint venture partners typically provide independently prepared estimates, furnish employees and equipment, enhance bonding capacity and often also bring local knowledge and expertise. These projects generally have joint and several liability. The Company selects joint venture partners based on its analysis of their construction and financial capabilities, expertise in the type of work to be performed and past working relationships with the Company, among other criteria. Joint ventures with a controlling interest —Where the Company has a controlling joint interest in a venture, the equity held by the remaining owners and their portions of net income (loss) are reflected in the Condensed Consolidated Balance Sheets line item “Noncontrolling interests” in “Stockholders’ equity” and the Condensed Consolidated Statements of Operations line item “Net income attributable to noncontrolling interests,” respectively. The Condensed Consolidated Statements of Changes in Stockholders’ Equity summarize the changes in the noncontrolling owners’ interests in subsidiaries and consolidated joint ventures. Joint ventures with a noncontrolling interest —Where the Company has a noncontrolling joint interest in a venture, the Company accounts for its share of the operations of such construction joint ventures on a pro-rata basis using proportionate consolidation on its Condensed Consolidated Statements of Operations and as a single line item in “Receivables from and equity in construction joint ventures” in the Condensed Consolidated Balance Sheets. This method is an acceptable modification of the equity method of accounting which is a common practice in the construction industry. Condensed combined financial amounts of joint ventures in which the Company has a noncontrolling interest and the Company’s share of such amounts which are included in the Company’s Condensed Consolidated Financial Statements are shown below: June 30, December 31, Current assets $ 136,284 $ 92,710 Current liabilities $ (142,553) $ (86,705) Sterling’s receivables from and equity in construction joint ventures $ 12,396 $ 9,196 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 43,466 $ 55,306 $ 70,312 $ 86,690 Income before tax $ 4,516 $ 8,844 $ 6,673 $ 10,813 Sterling’s noncontrolling interest: Revenues $ 19,377 $ 25,971 $ 32,459 $ 41,655 Income before tax $ 1,968 $ 3,116 $ 3,017 $ 4,100 The caption “Receivables from and equity in construction joint ventures,” includes undistributed earnings and receivables owed to the Company. Undistributed earnings are typically released to the joint venture partners after the customer accepts the project as completed and the warranty period, if any, has passed. The Company must determine whether each joint venture in which it participates is a VIE. This determination focuses on identifying which joint venture partner, if any, has the power to direct the activities of a joint venture and the obligation to absorb losses of the joint venture or the right to receive benefits from the joint venture in excess of their ownership interests and could have the effect of requiring us to consolidate joint ventures in which we have a noncontrolling variable interest. The Company determined that the joint venture between Ralph L Wadsworth Construction, LLC, a subsidiary of the Company (“RLW”) (51% owner) and SEMA Construction Inc (“SEMA”) (49% owner) is a VIE as the Company is the primary beneficiary, as pursuant to the terms of the SEMA Operating Agreement the Company is exposed to 51% of potential losses of the partnership. Summary financial information for SEMA is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 3,404 $ 1,027 $ 7,468 $ 1,629 Operating income $ 375 $ 75 $ 671 $ 113 Net income $ 376 $ 75 $ 675 $ 113 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 7. PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: June 30, December 31, Construction and transportation equipment $ 225,440 $ 217,945 Buildings and improvements 17,267 14,641 Land 3,891 3,891 Office equipment 2,609 2,767 Total property and equipment 249,207 239,244 Less accumulated depreciation (129,611) (123,214) Total property and equipment, net $ 119,596 $ 116,030 Depreciation Expense— Depreciation expense is primarily included within cost of revenues and was $5,390 and $10,838 for the three and six months ended June 30, 2020, respectively, and $3,571 and $7,273 for the three and six months ended June 30, 2019, respectively. |
Other Intangible Assets
Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | 8. OTHER INTANGIBLE ASSETS The following table presents the Company’s acquired finite-lived intangible assets at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Weighted Gross Gross Customer relationships 25 years $ 232,623 $ (11,621) $ 232,623 $ (6,911) Trade name 23 years 30,107 (2,450) 30,107 (1,692) Non-competition agreements 5 years 2,487 (526) 2,487 (291) Total 24 years $ 265,217 $ (14,597) $ 265,217 $ (8,894) The Company's intangible amortization expense was $2,866 and $5,703 for the three and six months ended June 30, 2020, respectively, and $600 and $1,200 for the three and six months ended June 30, 2019, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. DEBT The Company’s outstanding debt was as follows: June 30, December 31, Term Loan Facility $ 390,000 $ 400,000 Revolving Credit Facility 20,000 20,000 Credit Facility 410,000 420,000 Note payable to seller, Plateau Acquisition 10,000 10,000 Notes and deferred payments to sellers, Tealstone Acquisition — 12,230 Finance leases and other debt 10,451 805 Total debt 430,451 443,035 Less - Current maturities of long-term debt (54,979) (42,473) Less - Unamortized debt issuance costs (8,444) (9,935) Total long-term debt $ 367,028 $ 390,627 Credit Facility —On October 2, 2019, the Company, as borrower, and certain of its subsidiaries, as guarantors, entered into a Credit Agreement (the “Credit Agreement”) with BMO Harris Bank N.A., as administrative agent (the “Agent”), Bank of America, N.A., as syndication agent, and BMO Capital Markets Corp. and BofA Securities, Inc., as joint lead arrangers and joint book runners. The Credit Agreement provides the Company with senior secured debt financing in an amount up to $475,000 in the aggregate, consisting of (i) a senior secured first lien revolving credit facility (the “Revolving Credit Facility”) in an aggregate principal amount of $75,000 (with a $75,000 limit for the issuance of letters of credit and a $15,000 sublimit for swing line loans) and (ii) a senior secured first lien term loan facility (the “Term Loan Facility”) in the amount of $400,000 (collectively, the “Credit Facility”). The obligations under the Credit Facility are secured by substantially all assets of the Company and the subsidiary guarantors, subject to certain permitted liens and interests of other parties. The Credit Facility will mature on October 2, 2024. The Revolving Credit Facility bears interest at either the Base Rate plus a margin (4.25% and 3.50% per annum, respectively at June 30, 2020), or one-, two-, three-, six- or, if available, twelve-month LIBOR plus an applicable margin (0.19% and 4.50% per annum, respectively at June 30, 2020, using a one-month LIBOR rate), at the Company’s election. In addition to interest on debt borrowings, we are assessed quarterly commitment fees on the unutilized portion of the facility as well as letter of credit fees on outstanding instruments. Interest under the Revolving Credit Facility is payable (i) with respect to LIBOR borrowings, on the last day of each applicable interest period (one, two, three, six or twelve months), unless the applicable interest period is longer than three months, then on each day occurring every three months after the commencement of such interest period, and on the maturity date, and (ii) with respect to Base Rate borrowings, on the last day of every calendar quarter and on the maturity date. At June 30, 2020, we had $20,000 of outstanding borrowings under the facility, providing $55,000 of available capacity. During the six months ended June 30, 2020, our weighted average interest rate on borrowings under the Revolving Credit Facility was approximately 7.15%. The Revolving Credit Facility may be repaid in whole or in part at any time, with final payment of all principal and interest then outstanding due on October 2, 2024. Interest under the Term Loan Facility is payable at the same frequencies and bears interest at the same rate options as the Revolving Credit Facility. We utilize an interest rate swap to hedge against $350,000 of the outstanding Term Loan Facility, which resulted in a weighted average interest rate of approximately 5.80% per annum during the six months ended June 30, 2020. At June 30, 2020, we had $390,000 of outstanding borrowings under the facility. Principal payments on the Term Loan Facility total $30,000, $50,000, $50,000, $50,000 and $220,000 for each of the years ending 2020, 2021, 2022, 2023, and 2024, respectively. A final payment of all principal and interest then outstanding on the Term Loan Facility is due on October 2, 2024. The Credit Agreement contains various affirmative and negative covenants that may, subject to certain exceptions, restrict the ability of us and our subsidiaries to, among other things, grant liens, incur additional indebtedness, make loans, advances or other investments, make non-ordinary course asset sales, declare or pay dividends or make other distributions with respect to equity interests, purchase, redeem or otherwise acquire or retire capital stock or other equity interests, or merge or consolidate with any other person, among various other things. In addition, the Company is required to maintain the following financial covenants: • a Total Leverage Ratio (as defined in the Credit Agreement) at the last day of each fiscal quarter not to be greater than 4.00 to 1.00 ending on December 31, 2019 through and including June 30, 2020, 3.75 to 1.00 ending on September 30, 2020, 3.50 to 1.00 ending on December 31, 2020 through and including March 31, 2021, 3.25 to 1.00 ending on June 30, 2021 through and including September 30, 2021, and 3.00 to 1.00 ending on December 31, 2021 and thereafter; and • a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of not less than 1.20 to 1.00 as of the last day of each fiscal quarter of the Company, commencing with the fiscal quarter ending December 31, 2019. Debt issuance costs —The costs associated with the Term Loan Facility and Revolving Credit Facility are reflected on the Balance Sheets as a direct reduction from the related debt liability and amortized over the terms of the respective facilities. Amortization of debt issuance costs was $740 and $1,491 for the three and six months ended June 30, 2020, respectively, and $518 and $1,037 for the three and six months ended June 30, 2019, respectively, and was recorded as interest expense. Note Payable to Seller, Plateau Acquisition —As part of the Plateau Acquisition, the Company issued a $10,000 subordinated promissory note to one of the Plateau sellers that bears interest at 8% with interest payments due quarterly beginning January 1, 2020. The subordinated promissory note has no scheduled payments, however, it may be repaid in whole or in part at any time, subject to certain payment restrictions under a subordination agreement with the Agent under our Credit Agreement, without premium or penalty, with final payment of all principal and interest then outstanding due on April 2, 2025. Notes and deferred Payments to Sellers, Tealstone Acquisition— At June 30, 2020 the Company had no balance remaining on the combined promissory notes and deferred cash payments issued as part of the Tealstone Acquisition. During the three and six months ended June 30, 2020, the Company paid $5,000 of deferred cash payments and $7,500 on promissory notes that were due on April 3, 2020. Finance Leases and Other Debt —The Company had finance leases of $659 and $764 at June 30, 2020 and December 31, 2019, respectively. The finance leases have payment terms ranging from 3 to 5 years and the associated interest rates range from 2.99% to 6.92%. Additionally, during the three and six months ended June 30, 2020, the Company’s two 50% owned subsidiaries received three short-term Paycheck Protection Program loans totaling approximately $9,800. The loans may be fully or partially forgiven if the funds are used for payroll related costs, interest on mortgages, rent, and utilities, and as long as our employee headcount and salary levels remain consistent with our baseline period over an eight to twenty-four week period following the date the loans were received, otherwise the loans will be repaid following a six month deferral at a 1% interest rate. Any forgiveness of the loans is subject to approval by the Small Business Administration. The loans have been classified as short-term debt on the Condensed Consolidated Balance Sheets at June 30, 2020. Compliance and other —As of June 30, 2020, we were in compliance with all of our restrictive and financial covenants. The Company’s debt is recorded at its carrying amount in the Condensed Consolidated Balance Sheets. As of June 30, 2020 and December 31, 2019, the carrying values of our debt outstanding approximated the fair values. |
Lease Obligations
Lease Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease Obligations | 10. LEASE OBLIGATIONS The Company has operating and finance leases primarily for construction and transportation equipment, as well as office space. The Company’s leases have remaining lease terms of 1 month to 8 years, some of which include options to extend the leases for up to 10 years. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 2,075 $ 1,960 $ 4,234 $ 4,171 Short-term lease cost $ 3,745 $ 3,269 $ 7,026 $ 8,012 Finance lease cost: Amortization of right-of-use assets $ 49 $ 39 $ 105 $ 71 Interest on lease liabilities 7 1 15 3 Total finance lease cost $ 56 $ 40 $ 120 $ 74 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,336 $ 4,466 Operating cash flows from finance leases $ 15 $ 3 Financing cash flows from finance leases $ 105 $ 71 Right-of-use assets obtained in exchange for lease obligations (noncash): Operating leases $ 5,633 $ 6,311 Finance leases $ — $ 770 Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 17,076 $ 13,979 Current portion of long-term lease obligations $ 7,423 $ 7,095 Long-term lease obligations 9,733 6,976 Total operating lease liabilities $ 17,156 $ 14,071 Finance Leases Property and equipment, at cost $ 1,479 $ 1,479 Accumulated depreciation (592) (482) Property and equipment, net $ 887 $ 997 Current maturities of long-term debt $ 195 $ 204 Long-term debt 464 560 Total finance lease liabilities $ 659 $ 764 Weighted Average Remaining Lease Term Operating leases 3.4 2.5 Finance leases 3.7 4.0 Weighted Average Discount Rate Operating leases 5.8 % 6.0 % Finance leases 4.2 % 4.2 % Maturities of lease liabilities are as follows: Operating Finance Year Ending December 31, 2020 (excluding the six months ended June 30, 2020) $ 3,662 $ 112 2021 6,294 208 2022 4,300 161 2023 2,767 154 2024 806 77 Thereafter 1,438 — Total lease payments $ 19,267 $ 712 Less imputed interest (2,111) (53) Total $ 17,156 $ 659 |
Lease Obligations | 10. LEASE OBLIGATIONS The Company has operating and finance leases primarily for construction and transportation equipment, as well as office space. The Company’s leases have remaining lease terms of 1 month to 8 years, some of which include options to extend the leases for up to 10 years. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 2,075 $ 1,960 $ 4,234 $ 4,171 Short-term lease cost $ 3,745 $ 3,269 $ 7,026 $ 8,012 Finance lease cost: Amortization of right-of-use assets $ 49 $ 39 $ 105 $ 71 Interest on lease liabilities 7 1 15 3 Total finance lease cost $ 56 $ 40 $ 120 $ 74 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,336 $ 4,466 Operating cash flows from finance leases $ 15 $ 3 Financing cash flows from finance leases $ 105 $ 71 Right-of-use assets obtained in exchange for lease obligations (noncash): Operating leases $ 5,633 $ 6,311 Finance leases $ — $ 770 Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 17,076 $ 13,979 Current portion of long-term lease obligations $ 7,423 $ 7,095 Long-term lease obligations 9,733 6,976 Total operating lease liabilities $ 17,156 $ 14,071 Finance Leases Property and equipment, at cost $ 1,479 $ 1,479 Accumulated depreciation (592) (482) Property and equipment, net $ 887 $ 997 Current maturities of long-term debt $ 195 $ 204 Long-term debt 464 560 Total finance lease liabilities $ 659 $ 764 Weighted Average Remaining Lease Term Operating leases 3.4 2.5 Finance leases 3.7 4.0 Weighted Average Discount Rate Operating leases 5.8 % 6.0 % Finance leases 4.2 % 4.2 % Maturities of lease liabilities are as follows: Operating Finance Year Ending December 31, 2020 (excluding the six months ended June 30, 2020) $ 3,662 $ 112 2021 6,294 208 2022 4,300 161 2023 2,767 154 2024 806 77 Thereafter 1,438 — Total lease payments $ 19,267 $ 712 Less imputed interest (2,111) (53) Total $ 17,156 $ 659 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 11. FINANCIAL INSTRUMENTS Derivatives Interest Rate Derivative —We continue to utilize a swap arrangement to hedge against interest rate variability associated with $350,000 of the $390,000 outstanding under the Term Loan Facility. The Company has designated its interest rate swap agreement as a cash flow hedging derivative. To the extent the derivative instrument is effective and the documentation requirements have been met, changes in fair value are recognized in other comprehensive income (loss) (“OCI”) until the underlying hedged item is recognized in earnings. The total fair value of the contract was a net loss of $9,694 at June 30, 2020. Financial Instruments Disclosures Fair Value —Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1—Fair value is based on quoted prices in active markets. • Level 2—Fair value is based on internally developed models that use, as their basis, readily observable market parameters. Our derivative positions are classified within level 2 of the valuation hierarchy as they are valued using quoted market prices for similar assets and liabilities in active markets. These level 2 derivatives are valued utilizing an income approach, which discounts future cash flow based on current market expectations and adjusts for credit risk. • Level 3—Fair value is based on internally developed models that use, as their basis, significant unobservable market parameters. The Company did not have any level 3 classifications at June 30, 2020 or December 31, 2019. The following table presents the fair value of the interest rate derivative by valuation hierarchy and balance sheet classification: June 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets Other current assets $ — $ — $ — $ — $ — $ 216 $ — $ 216 Other non-current assets — — — — — — — — Total assets at fair value $ — $ — $ — $ — $ — $ 216 $ — $ 216 Derivative Liabilities Other current liabilities $ — $ (4,925) $ — $ (4,925) $ — $ (61) $ — $ (61) Other non-current liabilities — (4,769) — (4,769) — (398) — (398) Total liabilities at fair value $ — $ (9,694) $ — $ (9,694) $ — $ (459) $ — $ (459) The carrying values of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. At June 30, 2020, the fair value of the term loan, based upon the current market rates for debt with similar credit risk and maturities, approximated its carrying value as interest is based on LIBOR plus an applicable margin. OCI —The following table presents the total value recognized in OCI and reclassified from accumulated other comprehensive income (loss) (“AOCI”) into earnings during the three and six months ended June 30, 2020 for derivatives designated as cash flow hedges: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Before Tax Amount Tax Net of Tax Before Tax Amount Tax Net of Tax Net gain (loss) recognized in OCI $ (1,031) $ 232 $ (799) $ (10,205) $ 2,296 $ (7,909) Net amount reclassified from AOCI into earnings 963 (217) 746 1,026 (231) 795 Change in other comprehensive income $ (68) $ 15 $ (53) $ (9,179) $ 2,065 $ (7,114) (1) Net unrealized losses totaling $4,683 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES The Company is required by its insurance providers to obtain and hold standby letters of credit. These letters of credit serve as a guarantee by the banking institution to pay the Company’s insurance providers the incurred claim costs attributable to its general liability, workers compensation and automobile liability claims, up to the amount stated in the standby letters of credit, in the event that these claims were not paid by the Company. These letters of credit are cash collateralized, resulting in the cash being designated as restricted. The Company, including its construction joint ventures and its consolidated 50% owned subsidiaries, is now and may in the future be involved as a party to various legal proceedings that are incidental to the ordinary course of business. Management, after consultation with legal counsel, does not believe that the outcome of these actions will have a material impact on the Condensed Consolidated Financial Statements of the Company. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES The Company and its subsidiaries are based in the U.S. and file federal and various state income tax returns. The components of the provision for income taxes were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Current tax expense $ 1,938 $ 86 $ 2,209 $ 108 Deferred tax expense 5,310 620 6,223 761 Income tax expense $ 7,248 $ 706 $ 8,432 $ 869 Cash paid for income taxes $ — $ — $ 44 $ — The effective income tax rate varied from the 21% federal statutory rate primarily as a result of the change in tax valuation allowance, state income taxes and net income attributable to noncontrolling interest owners which is taxable to those owners rather than to the Company and other permanent differences. In addition, 2019 included a reduction in the tax valuation allowance that reduced income tax expense and 2020 includes state taxes related to Plateau. Due to the net operating loss carryforwards, the Company expects no cash payments for federal income taxes for 2020 or 2019. The Company makes cash payments for state income taxes in states in which the Company does not have net operating loss carry forwards. At December 31, 2019 the Company had federal and state net operating loss (“NOL”) carryforwards of $83,270 and $44,857, respectively, which expire at various dates in the next 18 years for U.S. federal income tax and in the next 8 to 18 years for the various state jurisdictions where we operate. Such NOL carryforwards expire beginning in 2028 through 2038. As a result of the Company’s analysis, management has determined that the Company does not have any material uncertain tax positions. |
Stock Incentive Plan and Other
Stock Incentive Plan and Other Equity Activity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stock Incentive Plan | 14. STOCK INCENTIVE PLAN AND OTHER EQUITY ACTIVITY General —The Company has a stock incentive plan (the “Stock Incentive Plan”) and a employee stock purchase plan (the “ESPP”) that are administered by the Compensation and Talent Development Committee of the Board of Directors. Under the Stock Incentive Plan, the Company can issue shares to employees and directors in the form of restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance share units (“PSUs”). Changes in common stock, additional paid in capital and treasury stock during the six months ended June 30, 2020 primarily relate to activity associated with the Stock Incentive Plan, the ESPP, and share repurchases. Share Grants —During the six months ended June 30, 2020, the Company had the following share grants associated with the Stock Incentive Plan: Shares Weighted Average Grant-Date Fair Value per Share RSAs 47 $ 8.24 RSUs 127 $ 14.08 PSUs (at target) 173 $ 14.08 Total shares granted 347 Share Issuances —During the six months ended June 30, 2020, the Company had the following share issuances associated with the Stock Incentive Plan and the ESPP: Shares RSAs (issued upon grant) 47 RSUs (issued upon vesting) 49 PSUs (issued upon vesting) 90 ESPP (issued upon sale) 25 Total shares issued 211 Stock-Based Compensation Expense —During the three and six months ended June 30, 2020, the Company recognized $3,962 and $6,196, respectively, of stock-based compensation expense, and during the three and six months ended June 30, 2019 the Company recognized $649 and $1,670 of stock-based compensation expense, respectively, primarily within general and administrative expenses. The Company recognizes forfeitures as they occur, rather than estimating expected forfeitures. Included within total stock-based compensation expense for the three and six months ended June 30, 2020 is $18 and $36, respectively, of expense related to the ESPP. At June 30, 2020, 762 authorized shares remained available for issuance under the ESPP. Shares Withheld for Taxes —The Company withheld 3 and 49 shares for taxes on stock-based compensation vestings for $32 and $700 during the three and six months ended June 30, 2020, respectively. Warrants —During the six months ended June 30, 2020, certain holders of warrants elected the cashless exercise option and the Company issued 110 common shares on the exercise of 470 warrants with a market value of $1,477. AOCI —During the three and six months ended June 30, 2020, changes in AOCI were a result of net gains (losses) recognized in OCI and amounts reclassified from AOCI into earnings related to our interest rate derivative. See Note 11 - Financial Instruments for further discussion of our cash flow hedge. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. EARNINGS PER SHARE Basic net income per share attributable to Sterling common stockholders is computed by dividing net income attributable to Sterling common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share attributable to Sterling common stockholders is the same as basic net income per share attributable to Sterling common stockholders but includes dilutive unvested stock awards and warrants using the treasury stock method. The following table reconciles the numerators and denominators of the basic and diluted per common share computations for net income attributable to Sterling common stockholders: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net income attributable to Sterling common stockholders $ 18,210 $ 7,828 $ 21,325 $ 9,643 Denominator: Weighted average common shares outstanding — basic 27,941 26,338 27,794 26,357 Shares for dilutive unvested stock and warrants 16 285 93 300 Weighted average common shares outstanding — diluted 27,957 26,623 27,887 26,657 Basic net income per share attributable to Sterling common stockholders $ 0.65 $ 0.30 $ 0.77 $ 0.37 Diluted net income per share attributable to Sterling common stockholders $ 0.65 $ 0.29 $ 0.76 $ 0.36 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 16. SEGMENT INFORMATION The Company’s internal and public segment reporting are aligned based upon the services offered by its operating groups, which represent the reportable segments. The Company’s operations consist of three reportable segments: Heavy Civil, Specialty Services and Residential. The Company’s Chief Operating Decision Maker evaluates the performance of the operating groups based upon revenue and income from operations. Each operating group’s income from operations reflects corporate costs, allocated based primarily upon revenue. The following table presents total revenue and income from operations by reportable segment for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenue Heavy Civil $ 220,448 $ 200,236 $ 376,063 $ 350,741 Specialty Services 135,703 27,894 240,426 58,573 Residential 43,887 35,956 80,237 78,721 Total Revenue $ 400,038 $ 264,086 $ 696,726 $ 488,035 Operating Income Heavy Civil $ 3,896 $ 5,747 $ 274 $ 3,600 Specialty Services 23,246 865 34,360 1,913 Residential 6,043 4,834 11,127 10,653 Subtotal 33,185 11,446 45,761 16,166 Acquisition related costs (139) (262) (612) (262) Total Operating Income $ 33,046 $ 11,184 $ 45,149 $ 15,904 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 17. SUPPLEMENTAL CASH FLOW INFORMATION Operating assets and liabilities— The following table summarizes the changes in the components of operating assets and liabilities: Six Months Ended June 30, 2020 2019 Accounts receivable, including retainage $ (21,159) $ (12,787) Contracts in progress, net 16,410 (14,190) Receivables from and equity in construction joint ventures (3,200) (3,661) Other current and non-current assets (372) 128 Accounts payable (6,495) 1,916 Accrued compensation and other liabilities 10,453 2,990 Members' interest subject to mandatory redemption and undistributed earnings 4,748 (512) Changes in operating assets and liabilities $ 385 $ (26,116) |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Presentation Basis— The accompanying Condensed Financial Statements are presented in accordance with accounting policies generally accepted in the United States (“GAAP”) and reflect all wholly owned subsidiaries and those entities the Company is required to consolidate. See the “Consolidated 50% Owned Subsidiaries” and “Construction Joint Ventures” section of this Note for further discussion of the Company’s consolidation policy for those entities that are not wholly owned. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Values presented within tables (excluding per share data) are in thousands. Reclassifications have been made to historical financial data in the Condensed Consolidated Financial Statements to conform to the current year presentation. |
Estimates and Judgments | Estimates and Judgments— The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Certain accounting estimates of the Company require a higher degree of judgment than others in their application. These include the recognition of revenue and earnings from construction contracts over time, the valuation of long-lived assets, goodwill, income taxes, and purchase accounting estimates, including goodwill and other intangible assets. Management continually evaluates all of its estimates and judgments based on available information and experience; however, actual results could differ from these estimates. |
Receivables, including Retainage | Receivables, including Retainage— Receivables are generally based on amounts billed to the customer in accordance with contractual provisions. Many of the contracts under which the Company performs work also contain retainage provisions. Retainage refers to that portion of our billings held for payment by the customer pending satisfactory completion of the project. Unless reserved, the Company assumes that all amounts retained by customers under such provisions are fully collectible. Retainage on active contracts is classified as a current asset regardless of the term of the contract and is generally collected within one year of the completion of a contract. At June 30, 2020 and December 31, 2019, receivables included $72,800 and $79,400 of retainage, respectively. Receivables are written off based on individual credit evaluation and specific circumstances of the customer, when such treatment is warranted. The Company performs a review of outstanding receivables, historical collection information and existing economic conditions to determine if there are potential uncollectible receivables. At both June 30, 2020 and December 31, 2019, our allowance for doubtful accounts against contracts receivable was zero. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 to add the guidance in ASC 326 on the impairment of financial instruments. The ASU introduces an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. The amendments in the ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2020 as required and noted no material impact to the Company’s Condensed Consolidated Financial Statements. |
Plateau Acquisition (Tables)
Plateau Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Fair Value Consideration Transferred | Sterling completed the Plateau Acquisition for a purchase price of $427,533, net of cash acquired, detailed as follows: Cash consideration transferred, net of $2,425 of cash acquired $ 375,000 Target working capital adjustment 21,323 Equity consideration transferred (1,245 shares at $13.01 per share (1) ) 16,195 Note payable to seller (See Note 9 - Debt) 10,000 Tax basis election 5,015 Total consideration $ 427,533 (1) Sterling’s closing stock price on October 1, 2019 |
Summary of Preliminary Purchase Price Allocation | The following table summarizes our purchase price allocation at the acquisition closing date, net of cash acquired: Net tangible assets: Accounts receivable, including retainage $ 81,921 Costs and estimated earnings in excess of billings 974 Other current assets 249 Property and equipment, net 65,492 Other non-current assets, net 10 Accounts payable (22,039) Billings in excess of costs and estimated earnings (16,540) Other current and non-current liabilities (7,918) Total net tangible assets 102,149 Identifiable intangible assets 218,600 Goodwill 106,784 Total consideration transferred $ 427,533 |
Schedule of Identifiable Intangible Assets Acquired | Weighted Average Life (Years) October 2, 2019 Customer relationships 25 $ 191,800 Trade name 25 24,800 Non-compete agreements 5 2,000 Total $ 218,600 |
Summary of Proforma Information | Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Pro forma revenue $ 347,862 $ 630,471 Pro forma net income attributable to Sterling $ 20,992 $ 28,323 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Backlog By Segment | The Company had the following backlog, by segment: June 30, December 31, Heavy Civil Backlog $ 874,822 $ 834,049 Specialty Services Backlog 258,992 233,976 Total Heavy Civil and Specialty Services Backlog $ 1,133,814 $ 1,068,025 |
Disaggregation of Revenue | The following tables present the Company’s revenue disaggregated by major end market and contract type: Three Months Ended June 30, Six Months Ended June 30, Revenue by major end market 2020 2019 2020 2019 Heavy Highway $ 152,526 $ 129,964 $ 248,900 $ 223,574 Aviation 34,867 37,061 63,324 66,998 Water Containment and Treatment 16,529 15,515 38,338 30,749 Other 16,526 17,696 25,501 29,420 Heavy Civil Revenue $ 220,448 $ 200,236 $ 376,063 $ 350,741 Land Development $ 105,639 $ — $ 181,884 $ — Commercial 30,064 27,894 58,542 58,573 Specialty Services Revenue $ 135,703 $ 27,894 $ 240,426 $ 58,573 Residential Revenue $ 43,887 $ 35,956 $ 80,237 $ 78,721 Revenues $ 400,038 $ 264,086 $ 696,726 $ 488,035 Revenue by contract type Fixed-Unit Price $ 203,692 $ 185,297 $ 345,431 $ 326,516 Lump Sum 147,460 43,666 261,712 82,798 Residential and Other 48,886 35,123 89,583 78,721 Revenues $ 400,038 $ 264,086 $ 696,726 $ 488,035 |
Consolidated 50% Owned Subsid_2
Consolidated 50% Owned Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of Components of Agreement Obligation | The liability consists of the following: June 30, December 31, Members’ interest subject to mandatory redemption $ 40,000 $ 40,000 Net accumulated earnings 13,751 9,003 Total liability $ 53,751 $ 49,003 |
Summary of Financial Information | Summary financial information for Myers is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 54,364 $ 59,664 $ 98,726 $ 102,078 Operating income $ 1,049 $ 2,004 $ 1,204 $ 2,281 Net income $ 1,051 $ 2,009 $ 1,209 $ 2,291 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 43,466 $ 55,306 $ 70,312 $ 86,690 Income before tax $ 4,516 $ 8,844 $ 6,673 $ 10,813 Sterling’s noncontrolling interest: Revenues $ 19,377 $ 25,971 $ 32,459 $ 41,655 Income before tax $ 1,968 $ 3,116 $ 3,017 $ 4,100 Summary financial information for SEMA is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 3,404 $ 1,027 $ 7,468 $ 1,629 Operating income $ 375 $ 75 $ 671 $ 113 Net income $ 376 $ 75 $ 675 $ 113 |
Construction Joint Ventures (Ta
Construction Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Balance Sheet | Condensed combined financial amounts of joint ventures in which the Company has a noncontrolling interest and the Company’s share of such amounts which are included in the Company’s Condensed Consolidated Financial Statements are shown below: June 30, December 31, Current assets $ 136,284 $ 92,710 Current liabilities $ (142,553) $ (86,705) Sterling’s receivables from and equity in construction joint ventures $ 12,396 $ 9,196 |
Condensed Income Statement | Summary financial information for Myers is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 54,364 $ 59,664 $ 98,726 $ 102,078 Operating income $ 1,049 $ 2,004 $ 1,204 $ 2,281 Net income $ 1,051 $ 2,009 $ 1,209 $ 2,291 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 43,466 $ 55,306 $ 70,312 $ 86,690 Income before tax $ 4,516 $ 8,844 $ 6,673 $ 10,813 Sterling’s noncontrolling interest: Revenues $ 19,377 $ 25,971 $ 32,459 $ 41,655 Income before tax $ 1,968 $ 3,116 $ 3,017 $ 4,100 Summary financial information for SEMA is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues $ 3,404 $ 1,027 $ 7,468 $ 1,629 Operating income $ 375 $ 75 $ 671 $ 113 Net income $ 376 $ 75 $ 675 $ 113 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are summarized as follows: June 30, December 31, Construction and transportation equipment $ 225,440 $ 217,945 Buildings and improvements 17,267 14,641 Land 3,891 3,891 Office equipment 2,609 2,767 Total property and equipment 249,207 239,244 Less accumulated depreciation (129,611) (123,214) Total property and equipment, net $ 119,596 $ 116,030 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents the Company’s acquired finite-lived intangible assets at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Weighted Gross Gross Customer relationships 25 years $ 232,623 $ (11,621) $ 232,623 $ (6,911) Trade name 23 years 30,107 (2,450) 30,107 (1,692) Non-competition agreements 5 years 2,487 (526) 2,487 (291) Total 24 years $ 265,217 $ (14,597) $ 265,217 $ (8,894) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s outstanding debt was as follows: June 30, December 31, Term Loan Facility $ 390,000 $ 400,000 Revolving Credit Facility 20,000 20,000 Credit Facility 410,000 420,000 Note payable to seller, Plateau Acquisition 10,000 10,000 Notes and deferred payments to sellers, Tealstone Acquisition — 12,230 Finance leases and other debt 10,451 805 Total debt 430,451 443,035 Less - Current maturities of long-term debt (54,979) (42,473) Less - Unamortized debt issuance costs (8,444) (9,935) Total long-term debt $ 367,028 $ 390,627 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expenses | The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 2,075 $ 1,960 $ 4,234 $ 4,171 Short-term lease cost $ 3,745 $ 3,269 $ 7,026 $ 8,012 Finance lease cost: Amortization of right-of-use assets $ 49 $ 39 $ 105 $ 71 Interest on lease liabilities 7 1 15 3 Total finance lease cost $ 56 $ 40 $ 120 $ 74 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,336 $ 4,466 Operating cash flows from finance leases $ 15 $ 3 Financing cash flows from finance leases $ 105 $ 71 Right-of-use assets obtained in exchange for lease obligations (noncash): Operating leases $ 5,633 $ 6,311 Finance leases $ — $ 770 Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 17,076 $ 13,979 Current portion of long-term lease obligations $ 7,423 $ 7,095 Long-term lease obligations 9,733 6,976 Total operating lease liabilities $ 17,156 $ 14,071 Finance Leases Property and equipment, at cost $ 1,479 $ 1,479 Accumulated depreciation (592) (482) Property and equipment, net $ 887 $ 997 Current maturities of long-term debt $ 195 $ 204 Long-term debt 464 560 Total finance lease liabilities $ 659 $ 764 Weighted Average Remaining Lease Term Operating leases 3.4 2.5 Finance leases 3.7 4.0 Weighted Average Discount Rate Operating leases 5.8 % 6.0 % Finance leases 4.2 % 4.2 % |
Maturities of Lease Liabilities, Operating Leases | Maturities of lease liabilities are as follows: Operating Finance Year Ending December 31, 2020 (excluding the six months ended June 30, 2020) $ 3,662 $ 112 2021 6,294 208 2022 4,300 161 2023 2,767 154 2024 806 77 Thereafter 1,438 — Total lease payments $ 19,267 $ 712 Less imputed interest (2,111) (53) Total $ 17,156 $ 659 |
Maturities of Lease Liabilities, Finance Leases | Maturities of lease liabilities are as follows: Operating Finance Year Ending December 31, 2020 (excluding the six months ended June 30, 2020) $ 3,662 $ 112 2021 6,294 208 2022 4,300 161 2023 2,767 154 2024 806 77 Thereafter 1,438 — Total lease payments $ 19,267 $ 712 Less imputed interest (2,111) (53) Total $ 17,156 $ 659 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | The following table presents the fair value of the interest rate derivative by valuation hierarchy and balance sheet classification: June 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets Other current assets $ — $ — $ — $ — $ — $ 216 $ — $ 216 Other non-current assets — — — — — — — — Total assets at fair value $ — $ — $ — $ — $ — $ 216 $ — $ 216 Derivative Liabilities Other current liabilities $ — $ (4,925) $ — $ (4,925) $ — $ (61) $ — $ (61) Other non-current liabilities — (4,769) — (4,769) — (398) — (398) Total liabilities at fair value $ — $ (9,694) $ — $ (9,694) $ — $ (459) $ — $ (459) |
Schedule of Derivative Assets at Fair Value | The following table presents the fair value of the interest rate derivative by valuation hierarchy and balance sheet classification: June 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Assets Other current assets $ — $ — $ — $ — $ — $ 216 $ — $ 216 Other non-current assets — — — — — — — — Total assets at fair value $ — $ — $ — $ — $ — $ 216 $ — $ 216 Derivative Liabilities Other current liabilities $ — $ (4,925) $ — $ (4,925) $ — $ (61) $ — $ (61) Other non-current liabilities — (4,769) — (4,769) — (398) — (398) Total liabilities at fair value $ — $ (9,694) $ — $ (9,694) $ — $ (459) $ — $ (459) |
Schedule of Changes in AOCI | The following table presents the total value recognized in OCI and reclassified from accumulated other comprehensive income (loss) (“AOCI”) into earnings during the three and six months ended June 30, 2020 for derivatives designated as cash flow hedges: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Before Tax Amount Tax Net of Tax Before Tax Amount Tax Net of Tax Net gain (loss) recognized in OCI $ (1,031) $ 232 $ (799) $ (10,205) $ 2,296 $ (7,909) Net amount reclassified from AOCI into earnings 963 (217) 746 1,026 (231) 795 Change in other comprehensive income $ (68) $ 15 $ (53) $ (9,179) $ 2,065 $ (7,114) (1) Net unrealized losses totaling $4,683 are anticipated to be reclassified from AOCI into earnings during the next 12 months due to settlement of the associated underlying obligations. |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Taxes | The components of the provision for income taxes were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Current tax expense $ 1,938 $ 86 $ 2,209 $ 108 Deferred tax expense 5,310 620 6,223 761 Income tax expense $ 7,248 $ 706 $ 8,432 $ 869 Cash paid for income taxes $ — $ — $ 44 $ — |
Stock Incentive Plan and Othe_2
Stock Incentive Plan and Other Equity Activity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Grants and Issuances | During the six months ended June 30, 2020, the Company had the following share grants associated with the Stock Incentive Plan: Shares Weighted Average Grant-Date Fair Value per Share RSAs 47 $ 8.24 RSUs 127 $ 14.08 PSUs (at target) 173 $ 14.08 Total shares granted 347 Shares RSAs (issued upon grant) 47 RSUs (issued upon vesting) 49 PSUs (issued upon vesting) 90 ESPP (issued upon sale) 25 Total shares issued 211 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerators and denominators of the basic and diluted per common share computations for net income attributable to Sterling common stockholders: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net income attributable to Sterling common stockholders $ 18,210 $ 7,828 $ 21,325 $ 9,643 Denominator: Weighted average common shares outstanding — basic 27,941 26,338 27,794 26,357 Shares for dilutive unvested stock and warrants 16 285 93 300 Weighted average common shares outstanding — diluted 27,957 26,623 27,887 26,657 Basic net income per share attributable to Sterling common stockholders $ 0.65 $ 0.30 $ 0.77 $ 0.37 Diluted net income per share attributable to Sterling common stockholders $ 0.65 $ 0.29 $ 0.76 $ 0.36 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents total revenue and income from operations by reportable segment for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenue Heavy Civil $ 220,448 $ 200,236 $ 376,063 $ 350,741 Specialty Services 135,703 27,894 240,426 58,573 Residential 43,887 35,956 80,237 78,721 Total Revenue $ 400,038 $ 264,086 $ 696,726 $ 488,035 Operating Income Heavy Civil $ 3,896 $ 5,747 $ 274 $ 3,600 Specialty Services 23,246 865 34,360 1,913 Residential 6,043 4,834 11,127 10,653 Subtotal 33,185 11,446 45,761 16,166 Acquisition related costs (139) (262) (612) (262) Total Operating Income $ 33,046 $ 11,184 $ 45,149 $ 15,904 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table summarizes the changes in the components of operating assets and liabilities: Six Months Ended June 30, 2020 2019 Accounts receivable, including retainage $ (21,159) $ (12,787) Contracts in progress, net 16,410 (14,190) Receivables from and equity in construction joint ventures (3,200) (3,661) Other current and non-current assets (372) 128 Accounts payable (6,495) 1,916 Accrued compensation and other liabilities 10,453 2,990 Members' interest subject to mandatory redemption and undistributed earnings 4,748 (512) Changes in operating assets and liabilities $ 385 $ (26,116) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Contract receivables | $ 72,800,000 | $ 79,400,000 |
Allowance for doubtful accounts against contracts receivable | 0 | 0 |
Other current assets | ||
Property, Plant and Equipment [Line Items] | ||
Restricted cash, current | $ 4,900,000 | $ 4,800,000 |
Plateau Acquisition - Narrative
Plateau Acquisition - Narrative (Details) - USD ($) $ in Thousands | Oct. 02, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 192,014 | $ 191,892 | |
Plateau Excavation | |||
Business Acquisition [Line Items] | |||
Total consideration | $ 427,533 | ||
Goodwill | $ 106,784 |
Plateau Acquisition - Considera
Plateau Acquisition - Consideration Transferred and Purchase Price Allocation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 02, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Oct. 01, 2019 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||
Goodwill | $ 192,014 | $ 191,892 | ||
Plateau Excavation | ||||
Business Acquisition [Line Items] | ||||
Cash consideration transferred, net of $2,425 of cash acquired | $ 375,000 | |||
Target working capital adjustment | 21,323 | |||
Share consideration given for acquisitions | 16,195 | |||
Note payable to seller | 10,000 | |||
Tax basis election | 5,015 | |||
Total consideration | 427,533 | |||
Cash acquired | $ 2,425 | |||
Equity consideration transferred (in shares) | 1,245 | |||
Business acquisition, price per share | $ 13.01 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||
Accounts receivable, including retainage | $ 81,921 | |||
Costs and estimated earnings in excess of billings | 974 | |||
Other current assets | 249 | |||
Property and equipment, net | 65,492 | |||
Other non-current assets, net | 10 | |||
Accounts payable | (22,039) | |||
Billings in excess of costs and estimated earnings | (16,540) | |||
Other current and non-current liabilities | (7,918) | |||
Total net tangible assets | 102,149 | |||
Identifiable intangible assets | 218,600 | |||
Goodwill | 106,784 | |||
Total consideration transferred | $ 427,533 |
Plateau Acquisition - Schedule
Plateau Acquisition - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2019 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||
Weighted Average Life | 24 years | |
Plateau Excavation | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 218,600 | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Weighted Average Life | 25 years | |
Customer relationships | Plateau Excavation | ||
Business Acquisition [Line Items] | ||
Weighted Average Life | 25 years | |
Fair Value | $ 191,800 | |
Trade name | ||
Business Acquisition [Line Items] | ||
Weighted Average Life | 23 years | |
Trade name | Plateau Excavation | ||
Business Acquisition [Line Items] | ||
Weighted Average Life | 25 years | |
Fair Value | $ 24,800 | |
Non-competition agreements | ||
Business Acquisition [Line Items] | ||
Weighted Average Life | 5 years | |
Non-competition agreements | Plateau Excavation | ||
Business Acquisition [Line Items] | ||
Weighted Average Life | 5 years | |
Fair Value | $ 2,000 |
Plateau Acquisition - Supplemen
Plateau Acquisition - Supplemental Pro Forma Information (Details) - Plateau Excavation - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||
Pro forma revenue | $ 347,862 | $ 630,471 |
Pro forma net income attributable to Sterling | $ 20,992 | $ 28,323 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Backlog By Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Backlog | $ 1,133,814 | $ 1,068,025 |
Heavy Civil | ||
Disaggregation of Revenue [Line Items] | ||
Backlog | 874,822 | 834,049 |
Specialty Services | ||
Disaggregation of Revenue [Line Items] | ||
Backlog | $ 258,992 | $ 233,976 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Remaining performance obligation expected to be recognized over next twelve months | 63.00% | 63.00% | |||
Costs and Estimated Earnings in Excess of Billings | |||||
Disaggregation of Revenue [Line Items] | |||||
Contracts receivable unpaid project contract price | $ 8,200 | $ 8,200 | $ 3,000 | ||
Operating income (Loss) | |||||
Disaggregation of Revenue [Line Items] | |||||
Estimated construction gain (loss) before tax | $ 2,197 | $ 3,500 | $ 2,292 | $ 3,300 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Additional Information (Details) | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation expected to be recognized over next twelve months | 63.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 12 months |
Revenue From Contracts With C_6
Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 400,038 | $ 264,086 | $ 696,726 | $ 488,035 |
Fixed-Unit Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 203,692 | 185,297 | 345,431 | 326,516 |
Lump Sum | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 147,460 | 43,666 | 261,712 | 82,798 |
Residential and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 48,886 | 35,123 | 89,583 | 78,721 |
Heavy Civil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 220,448 | 200,236 | 376,063 | 350,741 |
Heavy Civil | Heavy Highway | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 152,526 | 129,964 | 248,900 | 223,574 |
Heavy Civil | Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34,867 | 37,061 | 63,324 | 66,998 |
Heavy Civil | Water Containment and Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,529 | 15,515 | 38,338 | 30,749 |
Heavy Civil | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,526 | 17,696 | 25,501 | 29,420 |
Specialty Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 135,703 | 27,894 | 240,426 | 58,573 |
Specialty Services | Land Development | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 105,639 | 0 | 181,884 | 0 |
Specialty Services | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30,064 | 27,894 | 58,542 | 58,573 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 43,887 | $ 35,956 | $ 80,237 | $ 78,721 |
Consolidated 50% Owned Subsid_3
Consolidated 50% Owned Subsidiaries - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Noncontrolling Interest [Line Items] | |||||
Ownership interest in subsidiaries | 50.00% | 50.00% | |||
Number of entities | entity | 2 | 2 | |||
Members’ interest subject to mandatory redemption | $ 40,000 | $ 40,000 | $ 40,000 | ||
Total disability insurance policies, per policy amount | 20,000 | 20,000 | |||
Myers | |||||
Noncontrolling Interest [Line Items] | |||||
Net accumulated earnings | 4,600 | $ 1,400 | 6,300 | $ 2,700 | |
Variable Interest Entity, Primary Beneficiary | Myers | |||||
Noncontrolling Interest [Line Items] | |||||
Members’ interest subject to mandatory redemption | $ 20,000 | $ 20,000 |
Consolidated 50% Owned Subsid_4
Consolidated 50% Owned Subsidiaries - Components of Noncontrolling Interest (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Noncontrolling Interest [Abstract] | ||
Members’ interest subject to mandatory redemption | $ 40,000 | $ 40,000 |
Net accumulated earnings | 13,751 | 9,003 |
Total liability | $ 53,751 | $ 49,003 |
Consolidated 50% Owned Subsid_5
Consolidated 50% Owned Subsidiaries Consolidated 50% Owned Subsidiaries - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Variable Interest Entity [Line Items] | ||||
Operating income | $ 33,046 | $ 11,184 | $ 45,149 | $ 15,904 |
Net income | 18,210 | 7,828 | 21,325 | 9,643 |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Revenues | 54,364 | 59,664 | 98,726 | 102,078 |
Operating income | 1,049 | 2,004 | 1,204 | 2,281 |
Net income | $ 1,051 | $ 2,009 | $ 1,209 | $ 2,291 |
Construction Joint Ventures - C
Construction Joint Ventures - Construction Joint Ventures, Partner Share (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 416,447 | $ 357,521 |
Current liabilities | (337,692) | (293,504) |
Sterling’s receivables from and equity in noncontrolling construction joint ventures | 12,396 | 9,196 |
Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 136,284 | 92,710 |
Current liabilities | (142,553) | (86,705) |
Sterling’s receivables from and equity in noncontrolling construction joint ventures | $ 12,396 | $ 9,196 |
Construction Joint Ventures - I
Construction Joint Ventures - Income Statement Information (Details) - Joint Ventures - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 43,466 | $ 55,306 | $ 70,312 | $ 86,690 |
Income before tax | 4,516 | 8,844 | 6,673 | 10,813 |
Sterling’s noncontrolling interest: | ||||
Revenues | 19,377 | 25,971 | 32,459 | 41,655 |
Income before tax | $ 1,968 | $ 3,116 | $ 3,017 | $ 4,100 |
Construction Joint Ventures - S
Construction Joint Ventures - SEMA Financials (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 400,038 | $ 264,086 | $ 696,726 | $ 488,035 |
Operating income | 33,046 | 11,184 | 45,149 | 15,904 |
Net income attributable to Sterling common stockholders | $ 18,210 | 7,828 | $ 21,325 | 9,643 |
RLW | Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 51.00% | 51.00% | ||
SEMA Construction Inc | Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | 49.00% | ||
Revenues | $ 3,404 | 1,027 | $ 7,468 | 1,629 |
Operating income | 375 | 75 | 671 | 113 |
Net income attributable to Sterling common stockholders | $ 376 | $ 75 | $ 675 | $ 113 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 249,207 | $ 249,207 | $ 239,244 | ||
Less accumulated depreciation | (129,611) | (129,611) | (123,214) | ||
Total property and equipment, net | 119,596 | 119,596 | 116,030 | ||
Depreciation | 5,390 | $ 3,571 | 10,838 | $ 7,273 | |
Construction and transportation equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 225,440 | 225,440 | 217,945 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 17,267 | 17,267 | 14,641 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 3,891 | 3,891 | 3,891 | ||
Office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 2,609 | $ 2,609 | $ 2,767 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life | 24 years | ||||
Gross Carrying Amount | $ 265,217 | $ 265,217 | $ 265,217 | ||
Accumulated Amortization | (14,597) | (14,597) | (8,894) | ||
Amortization of intangible assets | 2,866 | $ 600 | $ 5,703 | $ 1,200 | |
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life | 25 years | ||||
Gross Carrying Amount | 232,623 | $ 232,623 | 232,623 | ||
Accumulated Amortization | (11,621) | $ (11,621) | (6,911) | ||
Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life | 23 years | ||||
Gross Carrying Amount | 30,107 | $ 30,107 | 30,107 | ||
Accumulated Amortization | (2,450) | $ (2,450) | (1,692) | ||
Non-competition agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life | 5 years | ||||
Gross Carrying Amount | 2,487 | $ 2,487 | 2,487 | ||
Accumulated Amortization | $ (526) | $ (526) | $ (291) |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 430,451,000 | $ 443,035,000 |
Less - Current maturities of long-term debt | (54,979,000) | (42,473,000) |
Less - Unamortized debt issuance costs | (8,444,000) | (9,935,000) |
Total long-term debt | 367,028,000 | 390,627,000 |
Finance Leases And Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,451,000 | 805,000 |
Secured Debt | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 390,000,000 | 400,000,000 |
Secured Debt | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,000,000 | 20,000,000 |
Secured Debt | Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 410,000,000 | 420,000,000 |
Notes Payable, Other Payables | Plateau Excavation | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,000,000 | 10,000,000 |
Tealstone Construction | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 12,230,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Oct. 02, 2019USD ($) | Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)entitynumberOfLoans | Jun. 30, 2019USD ($) | Dec. 31, 2024USD ($) | Dec. 31, 2023USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 05, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 430,451,000 | $ 430,451,000 | $ 443,035,000 | |||||||||
Amortization of debt issuance costs | 740,000 | $ 518,000 | 1,491,000 | $ 1,037,000 | ||||||||
Finance lease liabilities | $ 659,000 | $ 659,000 | 764,000 | |||||||||
Number of entities | entity | 2 | 2 | ||||||||||
Ownership interest in subsidiaries | 50.00% | 50.00% | ||||||||||
Paycheck protection loans received, CARES Act | numberOfLoans | 3 | |||||||||||
Paycheck protection program loan amount, CARES Act | $ 9,800,000 | $ 9,800,000 | ||||||||||
Plateau Excavation | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Liabilities incurred | $ 10,000,000 | |||||||||||
Tealstone Construction | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Promissory notes issued to the sellers | 5,000,000 | 5,000,000 | ||||||||||
Deferred cash payments due | 7,500,000 | $ 7,500,000 | ||||||||||
Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed charge ratio minimum | 1.20 | |||||||||||
Secured Debt | Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument face amount | 475,000,000 | |||||||||||
Secured Debt | Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 410,000,000 | $ 410,000,000 | 420,000,000 | |||||||||
Secured Debt | Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 390,000,000 | $ 390,000,000 | 400,000,000 | |||||||||
Weighted average interest rate | 5.80% | 5.80% | ||||||||||
Notes Payable, Other Payables | Plateau Excavation | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Liabilities incurred | $ 10,000,000 | |||||||||||
Stated interest rate | 8.00% | |||||||||||
Notes Payable, Other Payables | Tealstone Construction | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 0 | $ 0 | $ 12,230,000 | |||||||||
Notes Payable, Other Payables | Notes payable for transportation and construction equipment and other | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate | 2.99% | 2.99% | ||||||||||
Debt instrument, term | 3 years | |||||||||||
Notes Payable, Other Payables | Notes payable for transportation and construction equipment and other | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate | 6.92% | 6.92% | ||||||||||
Debt instrument, term | 5 years | |||||||||||
Revolving Credit Facility | Secured Debt | Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument face amount | $ 400,000,000 | |||||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | 75,000,000 | |||||||||||
Debt instrument, base interest rate | 4.25% | |||||||||||
Debt instrument, LIBOR interest rate | 0.19% | |||||||||||
Line of credit, remaining borrowing capacity | $ 55,000,000 | $ 55,000,000 | ||||||||||
Weighted average interest rate | 7.15% | 7.15% | ||||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 4.50% | |||||||||||
Swing Line Loan | Line of Credit | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | $ 15,000,000 | |||||||||||
Interest Rate Swap | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative, notional amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||||||||
Forecast | Secured Debt | Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Periodic payments | $ 220,000,000 | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | $ 30,000,000 | |||||||
October 1, 2019 - June 30, 2020 | Secured Debt | Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio maximum | 4 | |||||||||||
July 1, 2020 - September 30, 2020 | Secured Debt | Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio maximum | 3.75 | |||||||||||
October 1, 2020 - March 31, 2021 | Secured Debt | Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio maximum | 3.50 | |||||||||||
April 1, 2021 - June 30, 2021 | Secured Debt | Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio maximum | 3.25 | |||||||||||
October 1, 2021 - December 31, 2021 | Secured Debt | Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio maximum | 3 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Lease termination period | 10 years | ||||
Lease, Cost [Abstract] | |||||
Operating lease cost | $ 2,075 | $ 1,960 | $ 4,234 | $ 4,171 | |
Short-term lease cost | 3,745 | 3,269 | 7,026 | 8,012 | |
Finance lease cost: | |||||
Amortization of right-of-use assets | 49 | 39 | 105 | 71 | |
Interest on lease liabilities | 7 | 1 | 15 | 3 | |
Total finance lease cost | 56 | $ 40 | 120 | 74 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | 4,336 | 4,466 | |||
Operating cash flows from finance leases | 15 | 3 | |||
Financing cash flows from finance leases | 105 | 71 | |||
Right-of-use assets obtained in exchange for lease obligations (noncash): | |||||
Operating leases | 5,633 | 6,311 | |||
Finance leases | 0 | $ 770 | |||
Assets and Liabilities, Lessee [Abstract] | |||||
Operating lease right-of-use assets | 17,076 | 17,076 | $ 13,979 | ||
Current portion of long-term lease obligations | 7,423 | 7,423 | 7,095 | ||
Long-term lease obligations | 9,733 | 9,733 | 6,976 | ||
Total operating lease liabilities | 17,156 | 17,156 | 14,071 | ||
Property and equipment, at cost | 1,479 | 1,479 | 1,479 | ||
Accumulated depreciation | (592) | (592) | (482) | ||
Property and equipment, net | 887 | 887 | 997 | ||
Current maturities of long-term debt | 195 | 195 | 204 | ||
Long-term debt | 464 | 464 | 560 | ||
Total finance lease liabilities | $ 659 | $ 659 | $ 764 | ||
Weighted average remaining lease term: operating leases | 3 years 4 months 24 days | 3 years 4 months 24 days | 2 years 6 months | ||
Weighted average remaining lease term: financing leases | 3 years 8 months 12 days | 3 years 8 months 12 days | 4 years | ||
Weighted average discount rate: operating lease | 5.80% | 5.80% | 6.00% | ||
Weighted average discount rate: financing lease | 4.20% | 4.20% | 4.20% | ||
Operating Leases | |||||
2020 (excluding the six months ended June 30, 2020) | $ 3,662 | $ 3,662 | |||
2021 | 6,294 | 6,294 | |||
2022 | 4,300 | 4,300 | |||
2023 | 2,767 | 2,767 | |||
2024 | 806 | 806 | |||
Thereafter | 1,438 | 1,438 | |||
Total lease payments | 19,267 | 19,267 | |||
Less imputed interest | (2,111) | (2,111) | |||
Total operating lease liabilities | 17,156 | 17,156 | $ 14,071 | ||
Finance Leases | |||||
2020 (excluding the six months ended June 30, 2020) | 112 | 112 | |||
2021 | 208 | 208 | |||
2022 | 161 | 161 | |||
2023 | 154 | 154 | |||
2024 | 77 | 77 | |||
Thereafter | 0 | 0 | |||
Total lease payments | 712 | 712 | |||
Less imputed interest | (53) | (53) | |||
Total finance lease liabilities | $ 659 | $ 659 | $ 764 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal term | 1 month | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal term | 8 years |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 05, 2019 | |
Derivative [Line Items] | ||||
Long-term debt | $ 430,451 | $ 430,451 | $ 443,035 | |
Fair value of contracts | (68) | (9,179) | ||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Fair value of contracts | (9,694) | |||
Secured Debt | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 350,000 | 350,000 | $ 350,000 | |
Secured Debt | Term Loan Facility | ||||
Derivative [Line Items] | ||||
Long-term debt | $ 390,000 | $ 390,000 | $ 400,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of the Interest Rate Derivative (Details) - Fair Value, Recurring - Interest Rate Swap - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Assets | ||
Other current assets | $ 0 | $ 216 |
Other non-current assets | 0 | 0 |
Total assets at fair value | 0 | 216 |
Derivative Liabilities | ||
Other current liabilities | (4,925) | (61) |
Other non-current liabilities | (4,769) | (398) |
Total liabilities at fair value | (9,694) | (459) |
Level 1 | ||
Derivative Assets | ||
Other current assets | 0 | 0 |
Other non-current assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Derivative Liabilities | ||
Other current liabilities | 0 | 0 |
Other non-current liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Derivative Assets | ||
Other current assets | 0 | 216 |
Other non-current assets | 0 | 0 |
Total assets at fair value | 0 | 216 |
Derivative Liabilities | ||
Other current liabilities | (4,925) | (61) |
Other non-current liabilities | (4,769) | (398) |
Total liabilities at fair value | (9,694) | (459) |
Level 3 | ||
Derivative Assets | ||
Other current assets | 0 | 0 |
Other non-current assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Derivative Liabilities | ||
Other current liabilities | 0 | 0 |
Other non-current liabilities | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Total Value Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Net gain (loss) recognized in OCI, before tax amount | $ (1,031) | $ (10,205) | |||
Net gain (loss) recognized in OCI, tax amount | 232 | 2,296 | |||
Net gain (loss) recognized in OCI, net of tax amount | (799) | (7,909) | |||
Net amount reclassified from AOCI into earnings, before tax amount | 963 | 1,026 | |||
Net amount reclassified from AOCI into earnings, tax amount | (217) | (231) | |||
Net amount reclassified from AOCI into earnings, net of tax amount | 746 | 795 | |||
Change in OCI, before tax amount | (68) | (9,179) | |||
Change in OCI, tax amount | 15 | 2,065 | |||
Change in OCI, net of tax amount | $ (53) | $ (7,061) | $ 0 | (7,114) | $ 0 |
Interest Rate Swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Change in OCI, before tax amount | (9,694) | ||||
Interest Expense | Interest Rate Swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Unrealized gains expected to be reclassified from AOCI within next 12 months | $ (4,683) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |
Ownership interest in subsidiaries | 50.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Current tax expense | $ 1,938 | $ 86 | $ 2,209 | $ 108 | |
Deferred tax expense | 5,310 | 620 | 6,223 | 761 | |
Income tax expense | 7,248 | 706 | 8,432 | 869 | |
Cash paid for income taxes | $ 0 | $ 0 | $ 44 | $ 0 | |
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | $ 83,270 | ||||
Operating loss carryforward expiration period | 18 years | ||||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | $ 44,857 | ||||
Minimum | State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforward expiration period | 8 years | ||||
Maximum | State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforward expiration period | 18 years |
Stock Incentive Plan and Othe_3
Stock Incentive Plan and Other Equity Activity - Share Grants (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Class of Stock [Line Items] | |
Shares granted (in shares) | 347 |
RSAs | |
Class of Stock [Line Items] | |
Shares granted (in shares) | 47 |
Weighted Average Grant-Date Fair Value per Share | $ / shares | $ 8.24 |
RSUs | |
Class of Stock [Line Items] | |
Shares granted (in shares) | 127 |
Weighted Average Grant-Date Fair Value per Share | $ / shares | $ 14.08 |
PSUs | |
Class of Stock [Line Items] | |
Shares granted (in shares) | 173 |
Weighted Average Grant-Date Fair Value per Share | $ / shares | $ 14.08 |
Stock Incentive Plan and Othe_4
Stock Incentive Plan and Other Equity Activity - Share Issuances (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2020shares | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 211 |
RSAs | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 47 |
RSUs | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 49 |
PSUs | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 90 |
ESPP | |
Class of Stock [Line Items] | |
Shares issued (in shares) | 25 |
Stock Incentive Plan and Othe_5
Stock Incentive Plan and Other Equity Activity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Sale of Stock [Line Items] | ||||||
Stock-based compensation expense | $ 3,962 | $ 649 | $ 6,196 | $ 1,670 | ||
Shares withheld for taxes | $ (50) | $ (772) | $ (98) | $ (564) | ||
Shares issued from warrants | 110 | 110 | ||||
Number of warrants exercised | 470 | 470 | ||||
Fair value of warrants exercised | $ 1,477 | |||||
Employee Stock Purchase Plan | ESPP | ||||||
Sale of Stock [Line Items] | ||||||
Stock-based compensation expense | $ 18 | $ 36 | ||||
Remaining authorized shares available for purchase (in shares) | 762 | 762 | ||||
Treasury Stock | ||||||
Sale of Stock [Line Items] | ||||||
Shares withheld for taxes (in shares) | 3 | 46 | 45 | 49 | ||
Shares withheld for taxes | $ (32) | $ (668) | $ (564) | $ (700) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net income attributable to Sterling common stockholders | $ 18,210 | $ 7,828 | $ 21,325 | $ 9,643 |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 27,941 | 26,338 | 27,794 | 26,357 |
Shares for dilutive unvested stock and warrants (in shares) | 16 | 285 | 93 | 300 |
Weighted average common shares outstanding - diluted (in shares) | 27,957 | 26,623 | 27,887 | 26,657 |
Basic net income per share attributable to Sterling common stockholders (in dollars per share) | $ 0.65 | $ 0.30 | $ 0.77 | $ 0.37 |
Diluted net income per share attributable to Sterling common stockholders (in dollars per share) | $ 0.65 | $ 0.29 | $ 0.76 | $ 0.36 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Revenues | $ 400,038 | $ 264,086 | $ 696,726 | $ 488,035 |
Operating Income | 33,046 | 11,184 | 45,149 | 15,904 |
Acquisition related costs | (139) | (262) | (612) | (262) |
Heavy Civil | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 220,448 | 200,236 | 376,063 | 350,741 |
Operating Income | 3,896 | 5,747 | 274 | 3,600 |
Specialty Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 135,703 | 27,894 | 240,426 | 58,573 |
Operating Income | 23,246 | 865 | 34,360 | 1,913 |
Residential | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 43,887 | 35,956 | 80,237 | 78,721 |
Operating Income | 6,043 | 4,834 | 11,127 | 10,653 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | $ 33,185 | $ 11,446 | $ 45,761 | $ 16,166 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable, including retainage | $ (21,159) | $ (12,787) |
Contracts in progress, net | 16,410 | (14,190) |
Receivables from and equity in construction joint ventures | (3,200) | (3,661) |
Other current and non-current assets | (372) | 128 |
Accounts payable | (6,495) | 1,916 |
Accrued compensation and other liabilities | 10,453 | 2,990 |
Members' interest subject to mandatory redemption and undistributed earnings | 4,748 | (512) |
Changes in operating assets and liabilities | $ 385 | $ (26,116) |