Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | STERLING CONSTRUCTION CO INC | |
Entity Central Index Key | 874,238 | |
Trading Symbol | strl | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 25,002,964 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 43,021 | $ 4,426 |
Contracts receivable, including retainage | 105,415 | 82,112 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 31,989 | 26,905 |
Inventories | 4,000 | 2,535 |
Sterling’s receivables from and equity in construction joint ventures | 9,469 | 12,930 |
Other current assets | 6,170 | 6,013 |
Total current assets | 200,064 | 134,921 |
Property and equipment, net | 70,363 | 73,475 |
Goodwill | 54,820 | 54,820 |
Other assets, net | 2,968 | 2,949 |
Total assets | 328,215 | 266,165 |
Current liabilities: | ||
Accounts payable | 76,861 | 58,959 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 61,896 | 30,556 |
Current maturities of long-term debt | 4,653 | 4,856 |
Income taxes payable | 63 | 67 |
Accrued compensation | 10,412 | 5,977 |
Other current liabilities | 5,545 | 3,896 |
Total current liabilities | 159,430 | 104,311 |
Long-term liabilities: | ||
Total long-term debt | 6,952 | 15,324 |
Member’s interest subject to mandatory redemption and undistributed earnings | 46,466 | 50,438 |
Other long-term liabilities | 911 | 338 |
Total long-term liabilities | 54,329 | 66,100 |
Commitments and contingencies (Note 5) | ||
Sterling stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; 1,000,000 shares authorized, none issued | ||
Common stock, par value $0.01 per share; 28,000,000 shares authorized, 25,002,964 and 19,753,170 shares issued | 250 | 198 |
Additional paid in capital | 208,435 | 188,147 |
Retained deficit | (95,390) | (92,500) |
Total Sterling common stockholders’ equity | 113,295 | 95,845 |
Noncontrolling interests | 1,161 | (91) |
Total equity | 114,456 | 95,754 |
Total liabilities and equity | $ 328,215 | $ 266,165 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 28,000,000 | 28,000,000 |
Common stock, shares issued (in shares) | 25,002,964 | 19,753,170 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | $ 205,629 | $ 176,000 | $ 521,778 | $ 471,107 |
Cost of revenues | (188,597) | (161,542) | (484,827) | (454,374) |
Gross profit | 17,032 | 14,458 | 36,951 | 16,733 |
General and administrative expenses | (9,575) | (11,119) | (29,221) | (32,320) |
Other operating income (expense), net | (3,785) | (958) | (7,143) | 1,128 |
Operating income (loss) | 3,672 | 2,381 | 587 | (14,459) |
Interest income | 15 | 32 | 19 | 464 |
Interest expense | (491) | (1,087) | (2,176) | (2,103) |
Loss on extinguishment of debt | (240) | |||
Income (loss) before income taxes and earnings attributable to noncontrolling interests | 3,196 | 1,326 | (1,570) | (16,338) |
Income tax (expense) benefit | (41) | 39 | (68) | 8 |
Net income (loss) | 3,155 | 1,365 | (1,638) | (16,330) |
Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures | (740) | (1,109) | (1,252) | (2,948) |
Net income (loss) attributable to Sterling common stockholders | $ 2,415 | $ 256 | $ (2,890) | $ (19,278) |
Net income (loss) per share attributable to Sterling common stockholders: | ||||
Basic and diluted (in dollars per share) | $ 0.10 | $ 0.01 | $ (0.12) | $ (1) |
Weighted average number of common shares outstanding used in computing per share amounts: | ||||
Basic (in shares) | 25,002,964 | 19,627,674 | 23,914,688 | 19,269,123 |
Diluted (in shares) | 25,364,881 | 19,627,674 | 23,914,688 | 19,269,123 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net loss attributable to Sterling common stockholders | $ 2,415 | $ 256 | $ (2,890) | $ (19,278) |
Net income attributable to noncontrolling interests included in equity | 740 | 1,109 | 1,252 | 2,948 |
Other comprehensive income (loss), net of tax: | ||||
Realized loss from settlement of derivatives | 24 | 107 | ||
Change in the effective portion of unrealized loss in fair market value of derivatives | (6) | (6) | ||
Comprehensive income (loss) | $ 3,155 | $ 1,383 | $ (1,638) | $ (16,229) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes In Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 19,753 | ||||
Balance at Dec. 31, 2015 | $ 198 | $ 188,147 | $ (92,500) | $ (91) | $ 95,754 |
Net income (loss) | (2,890) | 1,252 | (1,638) | ||
Stock-based compensation (in shares) | 79 | ||||
Stock-based compensation | 1,211 | 1,211 | |||
Stock issued in equity offering, net of expense (in shares) | 5,175 | ||||
Stock issued in equity offering, net of expense | $ 52 | 19,090 | 19,142 | ||
Other (in shares) | (4) | ||||
Other | (13) | (13) | |||
Balance (in shares) at Sep. 30, 2016 | 25,003 | ||||
Balance at Sep. 30, 2016 | $ 250 | $ 208,435 | $ (95,390) | $ 1,161 | $ 114,456 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss attributable to Sterling common stockholders | $ (2,890) | $ (19,278) |
Plus: Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures | 1,252 | 2,948 |
Net loss | (1,638) | (16,330) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 12,097 | 12,479 |
Gain on disposal of property and equipment | (255) | (1,205) |
Stock-based compensation expense | 1,211 | 1,319 |
Loss on extinguishment of debt | 240 | |
Changes in operating assets and liabilities: | ||
Contracts receivable | (23,303) | (20,770) |
Costs and estimated earnings in excess of billings on uncompleted contracts | (5,084) | 10,116 |
Inventories | (1,465) | 4,821 |
Receivables from and equity in construction joint ventures | 3,461 | (1,936) |
Other assets | (1,246) | 9,318 |
Accounts payable | 17,902 | 7,291 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 31,340 | 7,400 |
Accrued compensation and other liabilities | 6,662 | 4,230 |
Member’s interest subject to mandatory redemption and undistributed earnings | (3,972) | 1,101 |
Net cash provided by operating activities | 35,710 | 3,492 |
Cash flows from investing activities: | ||
Additions to property and equipment | (8,852) | (7,086) |
Proceeds from sale of property and equipment | 2,187 | 5,859 |
Restricted cash | (4,945) | |
Net cash used in investing activities | (6,665) | (6,172) |
Cash flows from financing activities: | ||
Cumulative daily drawdowns – Credit Facility | 112,848 | |
Cumulative daily repayments – Credit Facility | (147,450) | |
Cash received– equipment-based term loan | 18,980 | |
Cumulative repayments – equipment-based term loan and other | (9,546) | |
Cumulative drawdowns – equipment-based revolver | 19,000 | 13,100 |
Cumulative repayments – equipment-based revolver | (19,000) | |
Net proceeds from stock issued | 19,142 | |
Distributions to noncontrolling interest owners | (3,402) | |
Other | (46) | (2,751) |
Net cash provided by (used in) financing activities | 9,550 | (8,675) |
Net increase (decrease) in cash and cash equivalents | 38,595 | (11,355) |
Cash and cash equivalents at beginning of period | 4,426 | 22,843 |
Cash and cash equivalents at end of period | 43,021 | 11,488 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 2,429 | 1,893 |
Cash paid during the period for income taxes | 5 | 547 |
Non-cash items: | ||
Transportation and construction equipment acquired through financing arrangements | $ 735 | $ 1,161 |
Note 1 - Business Summary and S
Note 1 - Business Summary and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Business Summary and Significant Accounting Policies Business Summary Sterling Construction Company, Inc. (“Sterling” or “the Company”), a Delaware corporation, is a leading heavy civil construction company that specializes in the building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Colorado, Arizona, California, Hawaii and other states in which there are construction opportunities. Its transportation infrastructure projects include highways, roads, bridges, airfields, ports and light rail. Its water infrastructure projects include water, wastewater and storm drainage systems. Presentation The condensed consolidated financial statements included herein have been prepared by Sterling, without audit, in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”). Certain information and note disclosures prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been either condensed or omitted pursuant to SEC rules and regulations. The condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly the Company’s financial position at September 30, 2016 and the results of operations and cash flows for the periods presented. The December 31, 2015 condensed consolidated balance sheet data herein was derived from audited financial statements, but as discussed above, does not include all disclosures required by GAAP. Interim results may be subject to significant seasonal variations and the results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year or subsequent quarters. Significant Accounting Policies The Company’s significant accounting policies are more fully described in Note 1 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K. These accounting policies include, but are not limited to, those related to: • revenue recognition • contracts receivable, including retainage • valuation of property and equipment, goodwill and other long-lived assets • income taxes • segment reporting There have been no material changes to significant accounting policies since December 31, 2015. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of subsidiaries and construction joint ventures in which the Company has a greater than 50% ownership interest or otherwise controls such entities. For investments in subsidiaries and construction joint ventures that are not wholly-owned, but where the Company exercises control, the equity held by the remaining owners and their portions of net income (loss) are reflected in the balance sheet line item “Noncontrolling interests” in “Equity” and the statement of operations line item “Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures,” respectively. All significant intercompany accounts and transactions have been eliminated in consolidation. For all years presented, the Company had no subsidiaries where its ownership interests were less than 50%. Where the Company is a noncontrolling joint venture partner, and otherwise not required to consolidate the joint venture entity, its share of the operations of such construction joint venture is accounted for on a pro rata basis in the condensed consolidated statements of operations and as a single line item (“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. Refer to Note 7 for further information regarding the Company’s construction joint ventures. Under GAAP, the Company must determine whether each entity, including joint ventures in which it participates, is a variable interest entity (“VIE”). This determination focuses on identifying which owner or joint venture partner, if any, has the power to direct the activities of the entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity disproportionate to its interest in the entity, which could have the effect of requiring the Company to consolidate the entity in which it has a noncontrolling variable interest. Refer to Note 8 for further information regarding the Company’s consolidated VIE. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions 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 of the Company’s accounting policies require higher degrees of judgment than others in their application. These include the recognition of revenue and earnings from construction contracts under the percentage-of-completion method, the valuation of long-term assets (including goodwill) and income taxes. Management continually evaluates all of its estimates and judgments based on available information and experience; however, actual results could differ from these estimates. Reclassification Reclassifications have been made to historical financial data on our condensed consolidated financial statements to conform to our current year presentation. Revenue Recognition The Company is a general contractor which engages in various types of heavy civil construction projects principally for public (government) owners. Credit risk is minimal with public owners since the Company ascertains that funds have been appropriated by the governmental project owner prior to commencing work on such projects. While most public contracts are subject to termination at the election of the government entity, in the event of termination the Company is entitled to receive the contract price for completed work and reimbursement of termination-related costs. Credit risk with private owners is minimized because of statutory mechanics liens, which give the Company high priority in the event of lien foreclosures following financial difficulties of private owners. Our contracts generally take 12 to 36 months to complete. The Company generally provides a one to two-year warranty for workmanship under its contracts when completed. Warranty claims historically have been insignificant. Revenues are recognized on the percentage-of-completion method, measured by the ratio of costs incurred up to a given date to estimated total costs for each contract. This cost to cost measure is used because management considers it to be the best available measure of progress on these contracts. Contract costs include all direct material, labor, subcontract and other costs and those indirect costs related to contract performance, such as indirect salaries and wages, equipment repairs and depreciation, insurance and payroll taxes. Administrative and general expenses are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. 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. Changes in estimated revenues and gross margin resulted in a net charge of $0.6 million and a net charge of $1.1 million during the three months and nine months ended September 30, 2016, respectively, included in “operating income (loss)” on the condensed consolidated statements of operations . . Change orders are modifications of an original contract that effectively change the existing provisions of the contract without adding new provisions or terms. Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Either we or our customers may initiate change orders. The Company considers unapproved change orders to be contract variations for which we have customer approval for a change of scope but a price change associated with the scope change has not yet been agreed upon. Costs associated with unapproved change orders are included in the estimated costs to complete the contracts and are treated as project costs as incurred. The Company recognizes revenue equal to costs incurred on unapproved change orders when realization of price approval is probable. Unapproved change orders involve the use of estimates, and it is reasonably possible that revisions to the estimated costs and recoverable amounts may be required in future reporting periods to reflect changes in estimates or final agreements with customers. Change orders that are unapproved as to both price and scope are evaluated as claims. The Company considers claims to be amounts in excess of agreed contract prices that we seek to collect from our customers or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs. Claims are included in the calculation of revenue when realization is probable and amounts can be reliably determined to the extent costs are incurred. To support these requirements, the existence of the following items must be satisfied: 1. The contract or other evidence provides a legal basis for the claim; or a legal opinion has been obtained, stating that under the circumstances there is a reasonable basis to support the claim; 2. Additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of deficiencies in the contractor’s performance; 3. Costs associated with the claim are identifiable or otherwise determinable and are reasonable in view of the work performed; and 4. The evidence supporting the claim is objective and verifiable, not based on management’s feel for the situation or on unsupported representations. Revenues in excess of contract costs incurred on claims is recognized when an agreement is reached with customers as to the value of the claims, which in some instances may not occur until after completion of work under the contract. Costs associated with claims are included in the estimated costs to complete the contracts and are treated as project costs when incurred. The Company has projects where we are in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with our 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 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 our 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 our review of the provisions of our contracts, specific costs incurred and other related evidence supporting the unapproved change orders, claims and our entitled unpaid project price, together with the views of the Company’s outside claim consultants, we concluded that including the unapproved change order, claim and entitled unpaid project price amounts of $2.4 million, $9.1 million and $3.9 million, respectively, at September 30, 2016, and $1.6 million, $5.2 million and $3.9 million, respectively, at December 31, 2015, in “Costs and estimated earnings in excess of billings on uncompleted contracts” on our condensed consolidated balance sheets was in accordance with GAAP. We expect these matters will be resolved without a material adverse effect on our financial statements. However, unapproved change order and claim amounts are subject to negotiations which may cause actual results to differ materially from estimated and recorded amounts. Financial Instruments and Fair Value The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The Company’s financial instruments are cash and cash equivalents, restricted cash used as collateral for a letter of credit and restricted cash maintained in an escrow account, short-term contracts receivable, accounts payable, notes payable, a revolving loan (the “Revolving Loan”) with Nations Fund I, LLC and Nations Equipment Finance, LLC, as administrative agent and collateral agent for the lender (“Nations”) and a term loan (the “Term Loan”) with Nations (combined, the “Equipment-based Facility”). The recorded values of cash and cash equivalents, restricted cash, short-term contracts receivable and accounts payable approximate their fair values based on their liquidity and/or short-term nature. Refer to Note 11 regarding the fair value of the Revolving Loan and the Term Loan and notes payable. The Company does not have any off-balance sheet financial instruments other than operating leases (refer to Note 12 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K). In order to assess the fair value of the Company’s financial instruments, the Company uses the fair value hierarchy established by GAAP which prioritizes the inputs used in valuation techniques into the following three levels: Level 1 Inputs – Based upon quoted prices for identical assets in active markets that the Company has the ability to access at the measurement date. Level 2 Inputs – Based upon quoted prices (other than Level 1) in active markets for similar assets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset such as interest rates, yield curves, volatilities and default rates and inputs that are derived principally from or corroborated by observable market data. Level 3 Inputs – Based on unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in pricing the asset based on the best information available. For each financial instrument, the Company uses the highest priority level input that is available in order to appropriately value that particular instrument. In certain instances, Level 1 inputs are not available and the Company must use Level 2 or Level 3 inputs. In these cases, the Company provides a description of the valuation techniques used and the inputs used in the fair value measurement. Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued guidance in Accounting Standards Update (“ASU”) No. 2016-15 (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses specific cash flow issues with the objective of reducing existing diversity in practice. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of the adoption of this guidance to the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued guidance in ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts (forward-looking). Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. This new guidance is effective for public entities for annual reporting periods, beginning after December 15, 2019, including interim reporting periods therein. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of the adoption of this guidance to the Company’s consolidated financial statements and related disclosures. In April and May 2016, the FASB issued additional revenue recognition guidance in ASU No. 2016-12, No. 2016-11 and 2016-10 (Topic 606). All three of these standards provide implementation guidance and clarifications of ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2016-10 provides additional guidance on identifying performance obligations and licensing, ASU 2016-11 rescinds SEC guidance based on the previous revenue recognition standards and ASU 2016-12 relates to narrow-scope improvements and practical expedients. All of these amendments are effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently evaluating the impact of the adoption of this guidance to the Company’s consolidated financial statements and related disclosures. In March 2016, the FASB issued its new stock compensation guidance in ASU No. 2016-09 (Topic 718). First, under the new guidance, companies will be required to recognize the income tax effects of share-based awards in the income statement when the awards vest or are settled (i.e., additional paid-in capital (“APIC”) or APIC pools will be eliminated). In addition, the new guidance allows a withholding amount of awarded shares with a fair value up to the amount of tax owed using the maximum, instead of the minimum, statutory tax rate without triggering liability classification for the award. Lastly, the new guidance allows companies to elect whether to account for forfeitures of share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The new standard is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company has chosen to early adopt this guidance and chosen to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur. The result of adopting this guidance was immaterial to the Company’s condensed consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of this ASU to the Company’s consolidated financial statements and related disclosures. |
Note 2 - Cash and Cash Equivale
Note 2 - Cash and Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 2. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original or remaining maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents include cash balances held by our wholly owned subsidiaries, as well as cash held by majority owned subsidiaries, construction joint ventures, and the Company’s VIE that we consolidate. Refer to Note 8 for more information regarding the Company’s consolidated VIE. Joint venture cash balances are limited to joint venture activities and are not available for other projects, general cash needs or distribution to us without approval of the board of directors, or equivalent body, of the respective joint ventures. At September 30, 2016 and December 31, 2015, cash and cash equivalents included $14.1 million and a minimal amount, respectively, belonging to a majority-owned joint venture which generally cannot be used for purposes outside the joint venture. Restricted cash of approximately $3.0 million is included in “other assets, net” on the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015, and represents cash deposited by the Company into a separate account and designated as collateral for a standby letter of credit in the same amount in accordance with contractual agreements. Refer to Note 5 for more information about our standby letter of credit. In addition, restricted cash of approximately $2.0 million is included in “other current assets” on the condensed consolidated balances sheet as of September 30, 2016 and December 31, 2015, which represents cash deposited by a customer, for the benefit of the Company, in an escrow account which is restricted until the customer releases the restriction upon the completion of the job. The Company holds cash on deposit in U.S. banks, at times, in excess of federally insured limits. Management does not believe that the risk associated with keeping cash deposits in excess of federal deposit insurance limits represents a material risk. |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 3. Property and Equipment Property and equipment are summarized as follows (amounts in thousands): September 30, December 31, Construction equipment $ 121,371 $ 114,724 Transportation equipment 18,924 18,056 Buildings 12,771 10,860 Office equipment 3,041 2,810 Leasehold improvement 915 894 Construction in progress 96 1,986 Land 3,509 4,257 Water rights 200 200 160,827 153,787 Less accumulated depreciation (90,464 ) (80,312 ) Total property and equipment, net $ 70,363 $ 73,475 |
Note 4 - Income Taxes
Note 4 - Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 4. Income Taxes The Company and its subsidiaries file U.S. federal and various U.S. state income tax returns. Current income tax expense (or benefit) represents federal and state taxes based on tax paid or expected to be payable or receivable for the periods shown in the condensed consolidated statements of operations. The Company is not expecting a current federal tax liability due to sufficient net operating loss carry forwards. The Company may incur current state tax liabilities in states in which the Company does not have sufficient net operating loss carry forwards. A minimal tax expense was recorded for the three and nine months ended September 30, 2016 and a minimal tax benefit was recorded for the three and nine months ended September 30, 2015. The effective income tax rate varied from the statutory rate primarily as a result of the change in the valuation allowance, net income attributable to noncontrolling interest owners which is taxable to those owners rather than to the Company, state income taxes and other permanent differences. The Company’s deferred tax expense (or benefit) reflects the change in deferred tax assets or liabilities. The Company performs an analysis at the end of each reporting period to determine whether it is more likely than not the deferred tax assets are expected to be realized in future years. Based upon this analysis, a full valuation allowance has been applied to our net deferred tax assets as of September 30, 2016 and December 31, 2015. Therefore, there has been no change in net deferred taxes for the three and nine months ended September 30, 2016. As a result of the Company’s analysis, management has determined that the Company does not have any material uncertain tax positions. |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 5. Commitments and Contingencies The Company is required by our insurance provider to obtain and hold a standby letter of credit. This letter of credit serves as a guarantee by the banking institution to pay our insurance provider the incurred claim costs attributable to our general liability, workers compensation and automobile liability claims, up to the amount stated in the standby letter of credit, in the event that these claims were not paid by the Company. Due to the change to our Equipment-based Facility, we have cash collateralized the letter of credit, resulting in the cash being designated as restricted. Refer to Note 2 for more information on our restricted cash. During the first six months of 2016, the Company recorded a legal reserve of $1.0 million as a result of a dispute between one of the Company’s wholly-owned subsidiaries and a subcontractor. This amount was recorded as “cost of revenues” in our condensed statements of operations and was settled for $1.0 million during the second quarter of 2016. This matter is now resolved in its entirety. The Company is the subject of certain other claims and lawsuits occurring in the normal 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. |
Note 6 - Subsidiaries and Joint
Note 6 - Subsidiaries and Joint Ventures with Noncontrolling Owners' Interests | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Noncontrolling Interest Disclosure [Text Block] | 6. Subsidiaries and Joint Ventures with Noncontrolling Owners’ Interests The amended agreements, as described in Note 2 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K, resulted in an obligation to purchase Mr. Buenting’s and Myers’ 50% members’ interest that the Company is certain to incur, either because of Mr. Buenting’s or Mr. Myers’ death; therefore, the Company has classified the noncontrolling interest as mandatorily redeemable and has recorded a liability in “Members’ interest subject to mandatory redemption and undistributed earnings” on the condensed consolidated balance sheets. In addition, all undistributed earnings at the time of the noncontrolling owners’ death or permanent disability are also mandatorily payable. The liability consists of the following (amounts in thousands): September 30, 2016 December 31, 2015 Members’ interest subject to mandatory redemption $ 40,000 $ 40,000 Net accumulated earnings 6,466 10,438 Total liability $ 46,466 $ 50,438 Earnings for the three and nine months ended September 30, 2016 were $3.4 million and $7.3 million, respectively and $1.5 million and $0.8 million for the three and nine months ended September 30, 2015. These amounts were included in “Other operating income, net” on the Company’s condensed consolidated statements of operations. Changes in Noncontrolling Interests The following table summarizes the changes in the noncontrolling owners’ interests in subsidiaries and joint ventures (amounts in thousands): Nine Months Ended 2016 2015 Balance, beginning of period $ (91 ) $ 7,462 Net income attributable to noncontrolling interest included in equity 1,252 2,948 Distributions to noncontrolling interest owners - (3,402 ) Balance, end of period $ 1,161 $ 7,008 Net income attributable to noncontrolling interests for the nine months ended September 30, 2016, is primarily from the Company’s majority-owned construction joint venture. Due to the events described in Note 2 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K, the Company’s subsidiaries with noncontrolling interest earnings are less than the earnings in the prior year period. |
Note 7 - Construction Joint Ven
Note 7 - Construction Joint Ventures | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 7. Construction Joint Ventures The Company participates in various construction joint ventures. Generally, each construction joint venture is formed to construct a specific project and is jointly controlled by the joint venture partners. Refer to Note 6 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K for further information about our joint ventures. 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 (amounts in thousands): September 30, December 31, Total combined: Current assets $ 26,893 $ 17,312 Less current liabilities (51,181 ) (49,371 ) Net assets $ (24,288 ) $ (32,059 ) Backlog $ 125,850 $ 35,113 Sterling’s noncontrolling interest in backlog $ 60,947 $ 11,748 Sterling’s receivables from and equity in construction joint ventures $ 9,469 $ 12,930 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Total combined: Revenues $ 15,520 $ 9,458 $ 44,074 $ 50,450 Income before tax 1,925 808 3,838 5,866 Sterling’s portion of noncontrolling interest: Revenues $ 6,103 $ 3,437 $ 17,567 $ 19,986 Income before tax 519 357 1,370 2,021 Approximately $61 million of the Company’s backlog at September 30, 2016 was attributable to projects being performed by joint ventures. The majority of this amount is attributable to the Company’s joint venture with Granite Construction Corporation, where the Company has a 49% interest. 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 complete and the warranty period, if any, has passed. |
Note 8 - Variable Interest Enti
Note 8 - Variable Interest Entities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Variable Interest Entities [Text Block] | 8. Variable Interest Entities The Company owns a 50% interest in Myers & Sons Construction, L.P. (“Myers”), of which it is the primary beneficiary and has consolidated Myers into the Company’s financial statements. Because the Company exercises primary control over activities of the partnership and it is exposed to the majority of potential losses of the partnership, the Company has consolidated Myers within the Company’s financial statements since August 1, 2011, the date of acquisition. Refer to Note 3 of the Notes to Consolidated Financial Statements included in the 2015 Form 10-K for additional information on the acquisition of this limited partnership. The condensed financial information of Myers, which is reflected in the Company’s condensed consolidated balance sheets and statements of operations, is as follows (amounts in thousands): September 30, December 31, Assets: Current assets: Cash and cash equivalents $ 2,074 $ 3,226 Contracts receivable, including retainage 25,107 19,941 Other current assets 10,052 15,887 Total current assets 37,233 39,054 Property and equipment, net 10,279 10,080 Goodwill 1,501 1,501 Total assets $ 49,013 $ 50,635 Liabilities: Current liabilities: Accounts payable $ 25,907 $ 20,596 Other current liabilities 11,541 10,986 Total current liabilities 37,448 31,582 Long-term liabilities: Other long-term liabilities 425 3,370 Total liabilities $ 37,873 $ 34,952 Three Months Ended Nine Months Ended September 30, 2016 2015 2016 2015 Revenues $ 50,739 $ 43,444 $ 121,649 $ 134,035 Operating income 2,720 2,216 4,894 5,885 Net income attributable to Sterling common stockholders 1,357 1,108 2,440 2,941 |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Stockholders’ Equity Stock Offering On May 9, 2016, the Company completed an underwritten public offering of 5,175,000 shares of the Company’s common stock, which included the full exercise of the sole underwriter’s over-allotment option, at a price to the public of $4.00 per share ($3.77 per share net of underwriting discounts). The net proceeds from the offering of $19.1 million, after deducting underwriting discounts and other offering expenses, were used for working capital, repayment of our indebtedness under the revolving loan portion of our Equipment-based Facility and for general corporate purposes. Stock-Based Compensation The Company has a stock-based incentive plan which is administered by the Compensation Committee of the Board of Directors. Refer to Note 14 of the Notes to Consolidated Financial Statements included in the 2015 Form 10-K for further information. During the three and nine months ended September 30, 2016, the Company awarded a total of zero and 79,240 shares of common stock, respectively, at a weighted-average grant date value of zero and $4.36 per share, respectively, based on the closing price of the Company’s common stock on the date of award. The Company recorded stock-based compensation expense of $0.4 million and $1.2 million for the three months and nine months ended September 30, 2016, respectively, and $0.8 million and $1.3 million for the three and nine months ended September 30, 2015, respectively. At September 30, 2016, total unrecognized compensation cost related to unvested common stock awards was $2.3 million. This cost is expected to be recognized over a weighted average period of 1.5 years. At September 30, 2016, there were 0.8 million shares of common stock covered by outstanding unvested common stock. |
Note 10 - Net Income (Loss) Per
Note 10 - Net Income (Loss) Per Share Attributable to Sterling Common Stockholders | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. Net Income (Loss) per Share Attributable to Sterling Common Stockholders Basic net income (loss) per share attributable to Sterling common stockholders is computed by dividing net income (loss) attributable to Sterling common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share attributable to Sterling common stockholders is the same as basic net income (loss) per share attributable to Sterling common stockholders but includes dilutive unvested stock 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 (loss) attributable to Sterling common stockholders (amounts in thousands, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income (loss) attributable to Sterling common stockholders $ 2,415 $ 256 $ (2,890 ) $ (19,278 ) Denominator: Weighted average common shares outstanding — basic 25,003 19,628 23,915 19,269 Shares for dilutive unvested stock 362 - - - Weighted average common shares outstanding and incremental shares assumed repurchased— diluted 25,365 19,628 23,915 19,269 Basic and diluted income (loss) per share attributable to Sterling common stockholders $ 0.10 $ 0.01 $ (0.12 ) $ (1.00 ) In accordance with the treasury stock method, zero and approximately 0.3 million shares of unvested common stock were excluded from the calculation of the diluted weighted average common shares outstanding for the three and nine months ended September 30, 2016, as the Company incurred a loss during the nine month period and the impact of such shares would have been antidilutive. In accordance with the treasury stock method, 0.2 million and 0.4 million shares of unvested common stock were excluded from the diluted weighted average common shares outstanding for the three and nine months ended September 30, 2015, as the assumed proceeds related to these shares would purchase more shares than the unvested shares outstanding resulting in anti-dilution. |
Note 11 - Debt
Note 11 - Debt | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11. Debt Debt consists of the following (in thousands): September 30, 2016 December 31, 2015 Equipment-based Facility $ 9,553 $ 17,957 Less deferred loan costs (891 ) (1,119 ) Equipment-based Facility, net 8,662 16,838 Notes payable for transportation and construction equipment and other 2,943 3,342 11,605 20,180 Current maturities of long-term debt 5,009 5,192 Less current deferred loan costs (356 ) (336 ) Less current maturities of long-term debt, net (4,653 ) (4,856 ) Total long-term debt $ 6,952 $ 15,324 Equipment-based Facility At September 30, 2016, the Company had a borrowing base of $27.0 million, which was the result of calculating 65% of the appraised value (where appraised value equals net operating liquidated value) of the Company’s collateral. During the three months ended September 30, 2016 the Company prepaid $5 million of the principal balance of our Term Loan and paid approximately $0.2 million as a prepayment fee which was recorded as “interest expense” in our condensed consolidated statement of operations. Fair Value The Company’s debt is recorded at its carrying amount in the condensed consolidated balance sheets. The Company uses an income approach to determine the fair value of its 12% Term Loan due May 29, 2019 using estimated cash flows, which is a Level 3 fair value measurement. As of September 30, 2016, the carrying values and fair values are as follows (amounts in thousands): September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Revolving Loan $ - $ - $ - $ - Term Loan 9,553 9,527 17,957 17,957 Total Equipment-based Facility debt $ 9,553 $ 9,527 $ 17,957 $ 17,957 Notes Payable for Transportation and Construction Equipment The Company has purchased and financed various transportation and construction equipment to enhance the Company’s fleet of equipment. The total long-term notes payable related to the purchase of financed equipment was $2.9 million at September 30, 2016 and $3.3 million at December 31, 2015. The purchases have payment terms ranging from 3 to 5 years and the associated interest rates range from 3.12% to 7.13%. The fair value of these notes payable approximates their book value. Interest Expense Interest expense related to our Equipment-based Facility and other debt for the three and nine months ended September 30, 2016 was $0.5 million and $2.2 million, respectively, and $1.1 million and $2.1 million for the three and nine months ended September 30, 2015, respectively. The decrease in interest expense for the three months ended September 30, 2016 was due to the decreased debt outstanding during the period. The slight increase in interest expense for the nine months ended September 30, 2016, was due to the prepayment fee discussed above and the higher interest rate on the Equipment-based Facility compared to the interest rate on our prior credit facility. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Presentation The condensed consolidated financial statements included herein have been prepared by Sterling, without audit, in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”). Certain information and note disclosures prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been either condensed or omitted pursuant to SEC rules and regulations. The condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly the Company’s financial position at September 30, 2016 and the results of operations and cash flows for the periods presented. The December 31, 2015 condensed consolidated balance sheet data herein was derived from audited financial statements, but as discussed above, does not include all disclosures required by GAAP. Interim results may be subject to significant seasonal variations and the results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year or subsequent quarters. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of subsidiaries and construction joint ventures in which the Company has a greater than 50% ownership interest or otherwise controls such entities. For investments in subsidiaries and construction joint ventures that are not wholly-owned, but where the Company exercises control, the equity held by the remaining owners and their portions of net income (loss) are reflected in the balance sheet line item “Noncontrolling interests” in “Equity” and the statement of operations line item “Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures,” respectively. All significant intercompany accounts and transactions have been eliminated in consolidation. For all years presented, the Company had no subsidiaries where its ownership interests were less than 50%. Where the Company is a noncontrolling joint venture partner, and otherwise not required to consolidate the joint venture entity, its share of the operations of such construction joint venture is accounted for on a pro rata basis in the condensed consolidated statements of operations and as a single line item (“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. Refer to Note 7 for further information regarding the Company’s construction joint ventures. Under GAAP, the Company must determine whether each entity, including joint ventures in which it participates, is a variable interest entity (“VIE”). This determination focuses on identifying which owner or joint venture partner, if any, has the power to direct the activities of the entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity disproportionate to its interest in the entity, which could have the effect of requiring the Company to consolidate the entity in which it has a noncontrolling variable interest. Refer to Note 8 for further information regarding the Company’s consolidated VIE. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions 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 of the Company’s accounting policies require higher degrees of judgment than others in their application. These include the recognition of revenue and earnings from construction contracts under the percentage-of-completion method, the valuation of long-term assets (including goodwill) and income taxes. Management continually evaluates all of its estimates and judgments based on available information and experience; however, actual results could differ from these estimates. |
Reclassification, Policy [Policy Text Block] | Reclassification Reclassifications have been made to historical financial data on our condensed consolidated financial statements to conform to our current year presentation. |
Revenue Recognition, Percentage-of-Completion Method [Policy Text Block] | Revenue Recognition The Company is a general contractor which engages in various types of heavy civil construction projects principally for public (government) owners. Credit risk is minimal with public owners since the Company ascertains that funds have been appropriated by the governmental project owner prior to commencing work on such projects. While most public contracts are subject to termination at the election of the government entity, in the event of termination the Company is entitled to receive the contract price for completed work and reimbursement of termination-related costs. Credit risk with private owners is minimized because of statutory mechanics liens, which give the Company high priority in the event of lien foreclosures following financial difficulties of private owners. Our contracts generally take 12 to 36 months to complete. The Company generally provides a one to two-year warranty for workmanship under its contracts when completed. Warranty claims historically have been insignificant. Revenues are recognized on the percentage-of-completion method, measured by the ratio of costs incurred up to a given date to estimated total costs for each contract. This cost to cost measure is used because management considers it to be the best available measure of progress on these contracts. Contract costs include all direct material, labor, subcontract and other costs and those indirect costs related to contract performance, such as indirect salaries and wages, equipment repairs and depreciation, insurance and payroll taxes. Administrative and general expenses are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. 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. Changes in estimated revenues and gross margin resulted in a net charge of $0.6 million and a net charge of $1.1 million during the three months and nine months ended September 30, 2016, respectively, included in “operating income (loss)” on the condensed consolidated statements of operations . . Change orders are modifications of an original contract that effectively change the existing provisions of the contract without adding new provisions or terms. Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Either we or our customers may initiate change orders. The Company considers unapproved change orders to be contract variations for which we have customer approval for a change of scope but a price change associated with the scope change has not yet been agreed upon. Costs associated with unapproved change orders are included in the estimated costs to complete the contracts and are treated as project costs as incurred. The Company recognizes revenue equal to costs incurred on unapproved change orders when realization of price approval is probable. Unapproved change orders involve the use of estimates, and it is reasonably possible that revisions to the estimated costs and recoverable amounts may be required in future reporting periods to reflect changes in estimates or final agreements with customers. Change orders that are unapproved as to both price and scope are evaluated as claims. The Company considers claims to be amounts in excess of agreed contract prices that we seek to collect from our customers or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs. Claims are included in the calculation of revenue when realization is probable and amounts can be reliably determined to the extent costs are incurred. To support these requirements, the existence of the following items must be satisfied: 1. The contract or other evidence provides a legal basis for the claim; or a legal opinion has been obtained, stating that under the circumstances there is a reasonable basis to support the claim; 2. Additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of deficiencies in the contractor’s performance; 3. Costs associated with the claim are identifiable or otherwise determinable and are reasonable in view of the work performed; and 4. The evidence supporting the claim is objective and verifiable, not based on management’s feel for the situation or on unsupported representations. Revenues in excess of contract costs incurred on claims is recognized when an agreement is reached with customers as to the value of the claims, which in some instances may not occur until after completion of work under the contract. Costs associated with claims are included in the estimated costs to complete the contracts and are treated as project costs when incurred. The Company has projects where we are in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with our 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 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 our 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 our review of the provisions of our contracts, specific costs incurred and other related evidence supporting the unapproved change orders, claims and our entitled unpaid project price, together with the views of the Company’s outside claim consultants, we concluded that including the unapproved change order, claim and entitled unpaid project price amounts of $2.4 million, $9.1 million and $3.9 million, respectively, at September 30, 2016, and $1.6 million, $5.2 million and $3.9 million, respectively, at December 31, 2015, in “Costs and estimated earnings in excess of billings on uncompleted contracts” on our condensed consolidated balance sheets was in accordance with GAAP. We expect these matters will be resolved without a material adverse effect on our financial statements. However, unapproved change order and claim amounts are subject to negotiations which may cause actual results to differ materially from estimated and recorded amounts. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments and Fair Value The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The Company’s financial instruments are cash and cash equivalents, restricted cash used as collateral for a letter of credit and restricted cash maintained in an escrow account, short-term contracts receivable, accounts payable, notes payable, a revolving loan (the “Revolving Loan”) with Nations Fund I, LLC and Nations Equipment Finance, LLC, as administrative agent and collateral agent for the lender (“Nations”) and a term loan (the “Term Loan”) with Nations (combined, the “Equipment-based Facility”). The recorded values of cash and cash equivalents, restricted cash, short-term contracts receivable and accounts payable approximate their fair values based on their liquidity and/or short-term nature. Refer to Note 11 regarding the fair value of the Revolving Loan and the Term Loan and notes payable. The Company does not have any off-balance sheet financial instruments other than operating leases (refer to Note 12 of the Notes to Consolidated Financial Statements in the 2015 Form 10-K). In order to assess the fair value of the Company’s financial instruments, the Company uses the fair value hierarchy established by GAAP which prioritizes the inputs used in valuation techniques into the following three levels: Level 1 Inputs – Based upon quoted prices for identical assets in active markets that the Company has the ability to access at the measurement date. Level 2 Inputs – Based upon quoted prices (other than Level 1) in active markets for similar assets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset such as interest rates, yield curves, volatilities and default rates and inputs that are derived principally from or corroborated by observable market data. Level 3 Inputs – Based on unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in pricing the asset based on the best information available. For each financial instrument, the Company uses the highest priority level input that is available in order to appropriately value that particular instrument. In certain instances, Level 1 inputs are not available and the Company must use Level 2 or Level 3 inputs. In these cases, the Company provides a description of the valuation techniques used and the inputs used in the fair value measurement. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued guidance in Accounting Standards Update (“ASU”) No. 2016-15 (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses specific cash flow issues with the objective of reducing existing diversity in practice. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of the adoption of this guidance to the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued guidance in ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts (forward-looking). Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. This new guidance is effective for public entities for annual reporting periods, beginning after December 15, 2019, including interim reporting periods therein. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of the adoption of this guidance to the Company’s consolidated financial statements and related disclosures. In April and May 2016, the FASB issued additional revenue recognition guidance in ASU No. 2016-12, No. 2016-11 and 2016-10 (Topic 606). All three of these standards provide implementation guidance and clarifications of ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2016-10 provides additional guidance on identifying performance obligations and licensing, ASU 2016-11 rescinds SEC guidance based on the previous revenue recognition standards and ASU 2016-12 relates to narrow-scope improvements and practical expedients. All of these amendments are effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently evaluating the impact of the adoption of this guidance to the Company’s consolidated financial statements and related disclosures. In March 2016, the FASB issued its new stock compensation guidance in ASU No. 2016-09 (Topic 718). First, under the new guidance, companies will be required to recognize the income tax effects of share-based awards in the income statement when the awards vest or are settled (i.e., additional paid-in capital (“APIC”) or APIC pools will be eliminated). In addition, the new guidance allows a withholding amount of awarded shares with a fair value up to the amount of tax owed using the maximum, instead of the minimum, statutory tax rate without triggering liability classification for the award. Lastly, the new guidance allows companies to elect whether to account for forfeitures of share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. The new standard is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company has chosen to early adopt this guidance and chosen to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur. The result of adopting this guidance was immaterial to the Company’s condensed consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of this ASU to the Company’s consolidated financial statements and related disclosures. |
Note 3 - Property and Equipme20
Note 3 - Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, December 31, Construction equipment $ 121,371 $ 114,724 Transportation equipment 18,924 18,056 Buildings 12,771 10,860 Office equipment 3,041 2,810 Leasehold improvement 915 894 Construction in progress 96 1,986 Land 3,509 4,257 Water rights 200 200 160,827 153,787 Less accumulated depreciation (90,464 ) (80,312 ) Total property and equipment, net $ 70,363 $ 73,475 |
Note 6 - Subsidiaries and Joi21
Note 6 - Subsidiaries and Joint Ventures with Noncontrolling Owners' Interests (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Components of Agreement Obligation [Table Text Block] | September 30, 2016 December 31, 2015 Members’ interest subject to mandatory redemption $ 40,000 $ 40,000 Net accumulated earnings 6,466 10,438 Total liability $ 46,466 $ 50,438 |
Schedule of Changes in Noncontrolling Interests and Joint Ventures [Table Text Block] | Nine Months Ended 2016 2015 Balance, beginning of period $ (91 ) $ 7,462 Net income attributable to noncontrolling interest included in equity 1,252 2,948 Distributions to noncontrolling interest owners - (3,402 ) Balance, end of period $ 1,161 $ 7,008 |
Note 7 - Construction Joint V22
Note 7 - Construction Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | September 30, December 31, Total combined: Current assets $ 26,893 $ 17,312 Less current liabilities (51,181 ) (49,371 ) Net assets $ (24,288 ) $ (32,059 ) Backlog $ 125,850 $ 35,113 Sterling’s noncontrolling interest in backlog $ 60,947 $ 11,748 Sterling’s receivables from and equity in construction joint ventures $ 9,469 $ 12,930 |
Condensed Income Statement [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Total combined: Revenues $ 15,520 $ 9,458 $ 44,074 $ 50,450 Income before tax 1,925 808 3,838 5,866 Sterling’s portion of noncontrolling interest: Revenues $ 6,103 $ 3,437 $ 17,567 $ 19,986 Income before tax 519 357 1,370 2,021 |
Note 8 - Variable Interest En23
Note 8 - Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Myers and Sons Construction [Member] | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Three Months Ended Nine Months Ended September 30, 2016 2015 2016 2015 Revenues $ 50,739 $ 43,444 $ 121,649 $ 134,035 Operating income 2,720 2,216 4,894 5,885 Net income attributable to Sterling common stockholders 1,357 1,108 2,440 2,941 |
Schedule of Variable Interest Entities [Table Text Block] | September 30, December 31, Assets: Current assets: Cash and cash equivalents $ 2,074 $ 3,226 Contracts receivable, including retainage 25,107 19,941 Other current assets 10,052 15,887 Total current assets 37,233 39,054 Property and equipment, net 10,279 10,080 Goodwill 1,501 1,501 Total assets $ 49,013 $ 50,635 Liabilities: Current liabilities: Accounts payable $ 25,907 $ 20,596 Other current liabilities 11,541 10,986 Total current liabilities 37,448 31,582 Long-term liabilities: Other long-term liabilities 425 3,370 Total liabilities $ 37,873 $ 34,952 |
Condensed Income Statement [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Total combined: Revenues $ 15,520 $ 9,458 $ 44,074 $ 50,450 Income before tax 1,925 808 3,838 5,866 Sterling’s portion of noncontrolling interest: Revenues $ 6,103 $ 3,437 $ 17,567 $ 19,986 Income before tax 519 357 1,370 2,021 |
Note 10 - Net Income (Loss) P24
Note 10 - Net Income (Loss) Per Share Attributable to Sterling Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income (loss) attributable to Sterling common stockholders $ 2,415 $ 256 $ (2,890 ) $ (19,278 ) Denominator: Weighted average common shares outstanding — basic 25,003 19,628 23,915 19,269 Shares for dilutive unvested stock 362 - - - Weighted average common shares outstanding and incremental shares assumed repurchased— diluted 25,365 19,628 23,915 19,269 Basic and diluted income (loss) per share attributable to Sterling common stockholders $ 0.10 $ 0.01 $ (0.12 ) $ (1.00 ) |
Note 11 - Debt (Tables)
Note 11 - Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, 2016 December 31, 2015 Equipment-based Facility $ 9,553 $ 17,957 Less deferred loan costs (891 ) (1,119 ) Equipment-based Facility, net 8,662 16,838 Notes payable for transportation and construction equipment and other 2,943 3,342 11,605 20,180 Current maturities of long-term debt 5,009 5,192 Less current deferred loan costs (356 ) (336 ) Less current maturities of long-term debt, net (4,653 ) (4,856 ) Total long-term debt $ 6,952 $ 15,324 |
Schedule of Debt [Table Text Block] | September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Revolving Loan $ - $ - $ - $ - Term Loan 9,553 9,527 17,957 17,957 Total Equipment-based Facility debt $ 9,553 $ 9,527 $ 17,957 $ 17,957 |
Note 1 - Business Summary and26
Note 1 - Business Summary and Significant Accounting Policies (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Minimum [Member] | |||||
Ownership Interest in Joint Venture | 50.00% | ||||
Revenue Recognition Percentage of Completion Range | 1 year | ||||
Warranty Term | 1 year | ||||
Maximum [Member] | |||||
Revenue Recognition Percentage of Completion Range | 3 years | ||||
Warranty Term | 2 years | ||||
Operating Income (Loss) [Member] | |||||
Estimated Construction Gross (Loss) Profit, Before Tax | $ (0.6) | $ (1.1) | $ (1.1) | $ (12.3) | |
Texas [Member] | |||||
Number of Projects with Claims | 2 | 2 | |||
Costs and Estimated Earnings in Excess of Billings [Member] | |||||
Unapproved Change Orders, Amount | $ 2.4 | $ 2.4 | $ 1.6 | ||
Contracts Receivable, Claims and Uncertain Amounts | 9.1 | 9.1 | $ 5.2 | ||
Contracts Receivable, Unpaid Project Contract Price | 3.9 | $ 3.9 | |||
Ownership Interest in Joint Venture | 50.00% | ||||
Contracts Receivable, Unpaid Project Contract Price | $ 3.9 | $ 3.9 |
Note 2 - Cash and Cash Equiva27
Note 2 - Cash and Cash Equivalents and Restricted Cash (Details Textual) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Majority Owned Joint Ventures [Member] | ||
Restricted Cash and Cash Equivalents | $ 14.1 | $ 14.1 |
Other Assets [Member] | ||
Restricted Cash and Cash Equivalents | 3 | 3 |
Other Current Assets [Member] | ||
Restricted Cash and Cash Equivalents | $ 2 | $ 2 |
Note 3 - Property and Equipme28
Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Construction Equipment [Member] | ||
Property, plant and equipment, gross | $ 121,371 | $ 114,724 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | 18,924 | 18,056 |
Building [Member] | ||
Property, plant and equipment, gross | 12,771 | 10,860 |
Office Equipment [Member] | ||
Property, plant and equipment, gross | 3,041 | 2,810 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 915 | 894 |
Construction in Progress [Member] | ||
Property, plant and equipment, gross | 96 | 1,986 |
Land [Member] | ||
Property, plant and equipment, gross | 3,509 | 4,257 |
Water Rights [Member] | ||
Property, plant and equipment, gross | 200 | 200 |
Property, plant and equipment, gross | 160,827 | 153,787 |
Less accumulated depreciation | (90,464) | (80,312) |
Total property and equipment, net | $ 70,363 | $ 73,475 |
Note 4 - Income Taxes (Details
Note 4 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Increase (Decrease) in Deferred Income Taxes | $ 0 | $ 0 |
Note 5 - Commitments and Cont30
Note 5 - Commitments and Contingencies (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Legal Dispute [Member] | |
Loss Contingency Accrual, Provision | $ 1 |
Other Current Liabilities [Member] | Costs of Revenue [Member] | |
Settlement Offer | $ 1 |
Note 6 - Subsidiaries and Joi31
Note 6 - Subsidiaries and Joint Ventures with Noncontrolling Owners' Interests (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
CEO of RHB [Member] | Upon Death [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | 50.00% | ||
Myers [Member] | Upon Death [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | 50.00% | ||
Income (Loss) from Subsidiaries, before Tax | $ 3.4 | $ 0.8 | $ 7.3 | $ 1.5 |
Note 6 - Subsidiaries and Joi32
Note 6 - Subsidiaries and Joint Ventures with Noncontrolling Owners' Interests - Components of Noncontrolling Interest Subject to Mandatory Redemption (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Members’ interest subject to mandatory redemption | $ 40,000 | $ 40,000 |
Net accumulated earnings | 6,466 | 10,438 |
Total liability | $ 46,466 | $ 50,438 |
Note 6 - Subsidiaries and Joi33
Note 6 - Subsidiaries and Joint Ventures with Noncontrolling Owners' Interests - Changes in Noncontrolling Owners' Interests in Subsidiaries and Consolidated Joint Ventures (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Subsidiaries [Member] | ||
Balance, beginning of period | $ (91) | $ 7,462 |
Net income attributable to noncontrolling interest included in equity | 1,252 | 2,948 |
Distributions to noncontrolling interest owners | (3,402) | |
Balance, end of period | 1,161 | $ 7,008 |
Balance, beginning of period | (91) | |
Balance, end of period | $ 1,161 |
Note 7 - Construction Joint V34
Note 7 - Construction Joint Ventures (Details Textual) $ in Millions | Sep. 30, 2016USD ($) |
Granite Construction Corporation [Member] | |
Equity Method Investment, Ownership Percentage | 49.00% |
Construction Backlog Attributable to Project Performed by Joint Ventures | $ 61 |
Note 7 - Construction Joint V35
Note 7 - Construction Joint Ventures - Construction Joint Ventures, Partner Share (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Corporate Joint Venture [Member] | ||
Total current assets | $ 26,893 | $ 17,312 |
Less current liabilities | (51,181) | (49,371) |
Net assets | (24,288) | (32,059) |
Backlog | 125,850 | 35,113 |
Sterling’s noncontrolling interest in backlog | 60,947 | 11,748 |
Sterling’s receivables from and equity in construction joint ventures | 9,469 | 12,930 |
Total current assets | 200,064 | 134,921 |
Less current liabilities | (159,430) | (104,311) |
Sterling’s receivables from and equity in construction joint ventures | $ 9,469 | $ 12,930 |
Note 7 - Construction Joint V36
Note 7 - Construction Joint Ventures - Construction Joint Ventures, Partner Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Corporate Joint Venture [Member] | Noncontrolling Interest [Member] | ||||
Revenues | $ 6,103 | $ 3,437 | $ 17,567 | $ 19,986 |
Income before tax | 519 | 357 | 1,370 | 2,021 |
Corporate Joint Venture [Member] | ||||
Revenues | 15,520 | 9,458 | 44,074 | 50,450 |
Income before tax | 1,925 | 808 | 3,838 | 5,866 |
Revenues | $ 205,629 | $ 176,000 | $ 521,778 | $ 471,107 |
Note 8 - Variable Interest En37
Note 8 - Variable Interest Entities (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Myers [Member] | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50.00% |
Note 8 - Variable Interest En38
Note 8 - Variable Interest Entities - Consolidated Balance Sheet - Myers (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | $ 2,074 | $ 3,226 | ||
Contracts receivable, including retainage | 25,107 | 19,941 | ||
Other current assets | 10,052 | 15,887 | ||
Total current assets | 37,233 | 39,054 | ||
Property and equipment, net | 10,279 | 10,080 | ||
Goodwill | 1,501 | 1,501 | ||
Total assets | 49,013 | 50,635 | ||
Current liabilities: | ||||
Accounts payable | 25,907 | 20,596 | ||
Other current liabilities | 11,541 | 10,986 | ||
Total current liabilities | 37,448 | 31,582 | ||
Long-term liabilities: | ||||
Other long-term liabilities | 425 | 3,370 | ||
Total liabilities | 37,873 | 34,952 | ||
Cash and cash equivalents | 43,021 | 4,426 | $ 11,488 | $ 22,843 |
Contracts receivable, including retainage | 105,415 | 82,112 | ||
Other current assets | 6,170 | 6,013 | ||
Total current assets | 200,064 | 134,921 | ||
Property and equipment, net | 70,363 | 73,475 | ||
Goodwill | 54,820 | 54,820 | ||
Total assets | 328,215 | 266,165 | ||
Accounts payable | 76,861 | 58,959 | ||
Total current liabilities | $ 159,430 | $ 104,311 |
Note 8 - Variable Interest En39
Note 8 - Variable Interest Entities - Consolidated Statements of Operations - Myers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Revenues | $ 50,739 | $ 43,444 | $ 121,649 | $ 134,035 |
Operating income | 2,720 | 2,216 | 4,894 | 5,885 |
Net income attributable to Sterling common stockholders | 1,357 | 1,108 | 2,440 | 2,941 |
Revenues | 205,629 | 176,000 | 521,778 | 471,107 |
Operating income | $ 3,672 | $ 2,381 | $ 587 | $ (14,459) |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 09, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
D.A. Davidson and Co. [Member] | |||||
Stock Issued During Period, Shares, New Issues | 5,175,000 | ||||
Share Price | $ 4 | ||||
Share Price, Net | $ 3.77 | ||||
Proceeds from Issuance of Common Stock | $ 19,100 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 79,240 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 4.36 | |||
Proceeds from Issuance of Common Stock | $ 19,142 | ||||
Allocated Share-based Compensation Expense | $ 400 | $ 800 | 1,200 | $ 1,300 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,300 | $ 2,300 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 182 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 800,000 | 800,000 |
Note 10 - Net Income (Loss) P41
Note 10 - Net Income (Loss) Per Share Attributable to Sterling Common Stockholders (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 200,000 | 300,000 | 400,000 |
Note 10 - Net Income (Loss) P42
Note 10 - Net Income (Loss) Per Share Attributable to Sterling Common Stockholders - Basic Net Income (Loss) Per Share Attributable to Sterling Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net loss attributable to Sterling common stockholders | $ 2,415 | $ 256 | $ (2,890) | $ (19,278) |
Basic (in shares) | 25,002,964 | 19,627,674 | 23,914,688 | 19,269,123 |
Diluted (in shares) | 25,364,881 | 19,627,674 | 23,914,688 | 19,269,123 |
Basic and diluted (in dollars per share) | $ 0.10 | $ 0.01 | $ (0.12) | $ (1) |
Note 11 - Debt (Details Textual
Note 11 - Debt (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Equipment-based Facility [Member] | Interest Expense [Member] | |||||
Repayments of Long-term Debt, Prepayment Penalty | $ 200 | ||||
Equipment-based Facility [Member] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 27,000 | $ 27,000 | |||
Debt Instrument, Percentage of Appraised Value of Collateral | 65.00% | 65.00% | |||
Repayments of Long-term Debt | $ 5,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||
Notes Payable for Transportation and Construction Equipment [Member] | Minimum [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.12% | 3.12% | |||
Debt Instrument, Term | 3 years | ||||
Notes Payable for Transportation and Construction Equipment [Member] | Maximum [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.13% | 7.13% | |||
Debt Instrument, Term | 5 years | ||||
Notes Payable for Transportation and Construction Equipment [Member] | |||||
Notes Payable | $ 2,900 | $ 2,900 | $ 3,300 | ||
Repayments of Long-term Debt | 9,546 | ||||
Notes Payable | 2,943 | 2,943 | $ 3,342 | ||
Interest Expense, Debt | $ 500 | $ 1,100 | $ 2,200 | $ 2,100 |
Note 11 - Debt - Long-term Debt
Note 11 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Equipment-based Facility [Member] | ||
Equipment-based Facility | $ 9,553 | $ 17,957 |
Less deferred loan costs | (891) | (1,119) |
Equipment-based Facility, net | 8,662 | 16,838 |
Notes payable for transportation and construction equipment and other | 2,943 | 3,342 |
11,605 | 20,180 | |
Current maturities of long-term debt | 5,009 | 5,192 |
Less current deferred loan costs | (356) | (336) |
Less current maturities of long-term debt, net | (4,653) | (4,856) |
Total long-term debt | $ 6,952 | $ 15,324 |
Note 11 - Debt - Carrying Value
Note 11 - Debt - Carrying Values and Fair Values of Debt (Details) - Equipment-based Facility [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Revolving Credit Facility [Member] | ||
Carrying Value | ||
Term Loan [Member] | ||
Carrying Value | 9,553 | 17,957 |
Fair Value | 9,527 | 17,957 |
Carrying Value | 8,662 | 16,838 |
Carrying Value | 9,553 | 17,957 |
Fair Value | $ 9,527 | $ 17,957 |