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Subsequent Events
6 Months Ended
Jun. 30, 2011
Subsequent Events  
Subsequent Events
11.  
Subsequent Events

On August 1, 2011, RLW,Sterling’s majority owned subsidiary, purchased all of the outstanding shares of capital stock of J. Banicki Construction, Inc. (“JBC”).  JBC is a heavy civil construction business located in Tempe, Arizona that builds roads and highways in Arizona, primarily for municipalities.  For the year ended December 31, 2010, JBC had revenues of $15.0 million and income before taxes of $1.6 million.  RLW paid an initial purchase price for JBC of $8.0 million which was funded by available cash and short-term investments of RLW and the Company.  The purchase agreement provides for additional purchase price of up to $5 million to be paid over a five year period.  The additional purchase price is in the form of an earn-out which is calculated as a percentage of the amount by which earnings before interest, taxes, depreciation and amortization (“EBITDA”) exceeds $2 million for each of the calendar years 2011 through 2015 and $1.7 million for the seven months ended July 31, 2016.

On August 1, 2011, the Company purchased a 50% interest in a construction limited partnership located in California.  The Company paid a purchase price of $1.3 million which was funded by available cash of the Company.  The terms of the purchase include a buy-back option on August 1, 2016 and again on August 1, 2018 under which certain of the sellers have the option to repurchase the 50% limited partnership interests from the Company for an amount equal to 50% of four and one-half times the limited partnership’s trailing twenty-four months earnings before interest, taxes, depreciation and amortization.  Revenues and earnings for the limited partnership have not been significant in 2010 through the date of acquisition.