Note 10 - Variable Interest Entities

9 Months Ended

Sep. 30, 2012

10. Variable Interest Entities

We own a 50% interest in Myers of which we are the primary beneficiary and have consolidated Myers into our 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 from August 1, 2011, the date of acquisition. See Note 2 of the Notes to Consolidated Financial Statements included in the 2011 Form 10-K for additional information on the acquisition of this limited partnership.

The condensed financial information of Myers which is reflected in our condensed consolidated balance sheets and statements of operations is as follows (in thousands):

	September 30, 2012		December 31, 2011
Assets:
Current assets:
Cash and cash equivalents	$	4,097	$	1,365
Contracts receivable, including retainage		17,222		2,244
Other current assets		1,250		419
Total current assets		22,569		4,028
Property and equipment, net		3,179		926
Goodwill		1,501		1,541
Total assets	$	27,249	$	6,495
Liabilities:
Current liabilities:
Accounts payable	$	16,883	$	1,134
Other current liabilities		4,890		2,323
Total current liabilities		21,773		3,457
Long-term liabilities:
Other long-term liabilities		--		--
Total long-term liabilities		--		--
Total liabilities	$	21,773	$	3,457

	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012		Three and Nine Months Ended September 30, 2011
Revenues	$	$39,972	$	$63,542	$	3,515
Operating income		1,917		2,519		162
Net income attributable to Sterling common stockholders		621		813		52