This excerpt taken from the STRL 8-K filed Mar 20, 2009.
Affirmation of 2009 Guidance and Comments on American Recovery and Reinvestment Act
Sterling’s Chairman and Chief Executive Officer, Pat Manning stated, “We are affirming our previously announced 2009 guidance, which is set forth below:
*Net income per diluted share guidance assumes 13,750,000 weighted average shares outstanding.
Mr. Manning added, “We are optimistic about the increased budget for TXDOT as well as the expected impact of the economic-stimulus legislation. The TXDOT budget for transportation construction projects for 2009 is $2.9 billion versus $2.1 billion for 2008. The economic-stimulus legislation provides an additional $2.3 billion for Texas, 50% of which must be obligated by June 30, 2009 and the remainder within one year thereafter. In Nevada, NDOT’s 2009 budget for transportation capital expenditures is approximately $400 million versus $355 million in 2008. In addition, the economic-stimulus legislation authorizes $200 million for Nevada highway and bridge construction, which must be obligated in the same manner as discussed above. Accordingly, based on the two states' budgets and plans, 2009 aggregate lettings, including stimulus funds, may be as much as $4.1 billion in Texas and $500 million in Nevada. These funding sources exclude transportation infrastructure spending provided by toll road and regional mobility authorities in Texas.”
James Allen, Jr., Sterling’s CFO noted, “During 2008, we invested $20 million in plant and equipment. We have maintained a strong balance sheet, closing the year with working capital of approximately $95 million, including $80 million of cash, cash equivalents and short-term securities, total assets of $290 million and stockholders’ equity of $159 million. Regarding the fourth quarter results of 2008 versus 2007, the difference in the gross margins resulted from some unusually profitable contracts performed in the 2007 period and lower margins on certain contracts in the 2008 period.”