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EX - 99.1 2 a20210802ex991 earningsrele.htm EX - 99.1 Exhibit 99.1 S Sterling Construction Company , Inc. NEWS RELEASE For Immediate Release : August 2 , 2021 THE WOODLANDS , TX - Sterling Reports Second Quarter 2021 Results Exceeds EPS Expectations Delivers Record Cash Flow from Operating Activities Increases 2021 Full Year Net Income Guidance August 2 , 2021 Sterling Construction Company , Inc. ( NasdaqGS : STRL ) ( " Sterling " or the " Company " ) today announced financial results for the second quarter 2021 . Consolidated Second Quarter 2021 Financial Results Compared to Second Quarter 2020 : • Revenues were $ 401.7 million compared to $ 400.0 million . • Net Income was $ 20.1 million compared to $ 18.2 million . • Diluted EPS was $ 0.69 compared to $ 0.65 . Consolidated Financial Position and Liquidity : • Cash and Cash Equivalents were $ 93.6 million at June 30 , 2021 . • • Cash provided by operating activities was a record $ 91.5 million for the six months ended June 30 , 2021 . Repayments of debt totaled $ 40.1 million for the six months ended June 30 , 2021 . Heavy Civil and Specialty Services Backlog Highlights : • Backlog at June 30 , 2021 was $ 1.57 billion , up from $ 1.18 billion at December 31 , 2020 . • Combined Backlog ( 1 ) at June 30 , 2021 was $ 1.65 billion , up from $ 1.53 billion at December 31 , 2020 . • Combined Backlog ( 1 ) margin at June 30 , 2021 was a record 12.2 % , up from 11.8 % at December 31 , 2020 . The Company Increases 2021 Full Year Net Income Guidance to $ 55 million - $ 58 million . CEO Remarks and Outlook " Overall , we had a strong quarter and were able to overcome significant headwinds from weather , inflation and material supply issues to exceed our expectations , " stated Joe Cutillo , Sterling's Chief Executive Officer . “ In our Heavy Civil segment , we had a nice improvement in operating income on lower revenue as we continue to shift away from low - bid heavy highway projects to alternative delivery work . Our Specialty and Residential segments had year - over - year revenue improvements , but operating income slightly declined due to the headwinds mentioned . Even with the challenges faced in this quarter , all of our segments delivered very strong bottom - line results in comparison to our prior exceptional financial performance in the second quarter of 2020. " " Our Specialty Services segment continues to see strong end - market growth and deliver impressive results . Our Backlog continued to grow in the quarter with key wins with our core customers . In addition , our geographic expansion enabled us to bring on new customers that are expanding their e - commerce efforts . " " In our Residential segment , we continue to see record demand ; however , our operating income in our Residential segment was down slightly year - over - year due largely to inflation and supply chain pressures . In addition to the supply chain issues , the inordinately wet weather during the quarter hampered our throughput and caused negative productivity . That said , we remain optimistic as the demand for new homes in Texas continues to outpace the rest of the U.S. Provided that the weather - related issues subside , we expect to catch up lost opportunities from the second quarter in the third quarter . Lastly , we recently expanded our geographic footprint into Phoenix , a Top Ten housing market in the U.S. Though it is early in the expansion process , we are excited about the potential this market has for our long - term growth . " ( 1 ) Combined Backlog includes Unsigned Low - bid Awards of $ 75.4 million and $ 356.9 million at June 30 , 2021 and December 31 , 2020 , respectively .