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EX - 99.1 2 a20211102ex991 earningsrele.htm EX - 99.1 STERLING INNOVATION IN INFRASTRUCTURE NEWS RELEASE For Immediate Release : November 2 , 2021 Exhibit 99.1 Sterling Reports Third Quarter 2021 Results EPS Continues to Outpace Expectations Increases 2021 Full Year Revenue and Net Income Guidance Delivered Record YTD Operating Cash Flow THE WOODLANDS , TX November 2 , 2021 - Sterling Construction Company , Inc. ( NasdaqGS : STRL ) ( " Sterling " or the " Company " ) today announced financial results for the third quarter 2021 . Consolidated Third Quarter 2021 Financial Results Compared to Third Quarter 2020 : • Revenues were $ 463.4 million compared to $ 383.5 million . • Net Income was $ 21.1 million compared to $ 15.2 million . • Diluted EPS was $ 0.72 compared to $ 0.54 . Consolidated Financial Position and Liquidity : • Cash and Cash Equivalents were $ 117.7 million at September 30 , 2021 . • • Cash provided by operating cash flow was a record $ 135.7 million for the nine months ended September 30 , 2021 . Repayments of debt totaled $ 44.2 million for the nine months ended September 30 , 2021 . Heavy Civil and Specialty Services Backlog Highlights : Backlog at September 30 , 2021 was $ 1.41 billion , up from $ 1.18 billion at December 31 , 2020 , while Backlog gross margin improved from 12.0 % to 12.3 % , over the respective periods . • Combined Backlog ( 1 ) was $ 1.53 billion at both September 30 , 2021 and December 31 , 2020 , while Combined Backlog gross margin improved from 11.8 % to 12.1 % , over the respective periods . The Company Increases 2021 Full Year Revenue and Net Income Guidance : • Revenue of $ 1.510 billion to $ 1.520 billion • Net Income of $ 61 million to $ 64 million CEO Remarks and Outlook " The third quarter was a strong quarter , exceeding our Net Income and EPS expectations , " stated Joe Cutillo , Sterling's Chief Executive Officer . " We were able to deliver another outstanding quarter despite the headwinds from inflation and the supply chain . Our diverse portfolio of end customers and geographies , coupled with the strength of our end markets , were the drivers that enabled us to offset these headwinds . In our Heavy Civil sector , operating income almost tripled that of Q3 2020 , driven by revenue growth in aviation and alternative delivery heavy highway projects . Our Specialty Services sector saw year - over - year revenue growth but a decline in operating income driven by inflation and supply chain delays . Our Residential sector delivered both record revenue and income driven by continued strong demand in the Texas market and the recent expansion into Phoenix . " " In addition to the great earnings results from our operating units , the third quarter also benefited from reduced interest expense and a lower income tax expense . " ( 1 ) Combined Backlog includes Unsigned Low - bid Awards of $ 115.0 million and $ 356.9 million at September 30 , 2021 and December 31 , 2020 , respectively .