Note 10 - Variable Interest Entities

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Variable Interest Entities [Text Block]

10. Variable Interest Entities

The Company owns a 50% interest in 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 2014 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, 2015		December 31, 2014
Assets:
Current assets:
Cash and cash equivalents	$	946	$	148
Contracts receivable, including retainage		28,758		21,327
Other current assets		8,777		7,656
Total current assets		38,481		29,131
Property and equipment, net		10,444		9,303
Goodwill		1,501		1,501
Total assets	$	50,426	$	39,935
Liabilities:
Current liabilities:
Accounts payable	$	24,179	$	15,795
Other current liabilities		11,644		9,000
Total current liabilities		35,823		24,795
Long-term liabilities:
Other long-term liabilities		400		16
Total liabilities	$	36,223	$	24,811

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
Revenues	$	43,444		$	40,159	$	134,035		$	101,953
Operating income		2,216			3,461		5,885			6,760
Net (loss) income attributable to Sterling common stockholders		(1,108	)		1,728		(2,941	)		3,376