<SEC-DOCUMENT>0001171843-16-008569.txt : 20160315
<SEC-HEADER>0001171843-16-008569.hdr.sgml : 20160315
<ACCEPTANCE-DATETIME>20160314183831
ACCESSION NUMBER:		0001171843-16-008569
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20160314
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160315
DATE AS OF CHANGE:		20160314

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STERLING CONSTRUCTION CO INC
		CENTRAL INDEX KEY:			0000874238
		STANDARD INDUSTRIAL CLASSIFICATION:	HEAVY CONSTRUCTION OTHER THAN BUILDING CONST - CONTRACTORS [1600]
		IRS NUMBER:				251655321
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31993
		FILM NUMBER:		161505135

	BUSINESS ADDRESS:	
		STREET 1:		2751 CENTERVILLE RD.
		STREET 2:		SUITE 3131
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19803
		BUSINESS PHONE:		3024789170

	MAIL ADDRESS:	
		STREET 1:		20810 FERNBUSH LANE
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77073

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	OAKHURST CO INC
		DATE OF NAME CHANGE:	19950831

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	OAKHURST CAPITAL INC
		DATE OF NAME CHANGE:	19931130
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_031416.htm
<DESCRIPTION>FORM 8-K
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 0.75pt; border-top: Black 0.75pt solid; border-bottom: Black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>UNITED STATES</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>FORM 8-K</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>CURRENT REPORT</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">Date of Report (Date of earliest event reported): <B>March 14, 2016</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 100%; padding-right: -0.15in; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-size: 12pt"><B>STERLING CONSTRUCTION COMPANY, INC.</B></FONT></TD></TR>
</TABLE>
<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">(Exact name of registrant as specified in its charter)</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
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    <TD STYLE="padding-right: -5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>1-31993</B></FONT></TD>
    <TD STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>25-1655321</B></FONT></TD></TR>
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    <TD STYLE="padding-right: -0.15pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction of incorporation or organization)</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="padding-right: -0.9pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer Identification No.)</FONT></TD></TR>
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    <TD STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font-size: 10pt; text-align: center; margin: 0pt 4.35pt 0pt 0"><B>1800 Hughes Landing Blvd.</B></P>
        <P STYLE="font-size: 10pt; text-align: center; margin: 0pt 4.35pt 0pt 0"><B>The Woodlands, Texas</B></P></TD>
    <TD COLSPAN="2" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: -0.7pt; padding-left: 5.4pt; text-align: center"><BR>
<FONT STYLE="font-size: 10pt"><B>77380</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 4.35pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(Address of principal executive offices)</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: -0.8pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(Zip Code)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="7" STYLE="padding-right: -0.7pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Registrant&rsquo;s telephone number, including area code:&nbsp;&nbsp;<B>(281) 214-0800</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: -0.15in; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 35%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 38%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<U>see</U> General Instruction
A.2. below):</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 15pt; text-align: left">&#9744;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

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<TD STYLE="width: 15pt; text-align: left">&#9744;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 15pt; text-align: left">&#9744;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17&nbsp;CFR
240.14d-2(b))</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 15pt; text-align: left">&#9744;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17&nbsp;CFR
240.13e-4(c))</TD>
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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>



<P STYLE="font-size: 10pt; text-align: left; text-indent: -1in; margin: 0pt 0 0pt 1in"><B></B></P>

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<P STYLE="font-size: 10pt; text-align: left; text-indent: -1in; margin: 0pt 0 0pt 1in"><B>Item 2.02 Results of Operations
and Financial Condition.</B></P>

<P STYLE="font-size: 10pt; text-align: left; text-indent: -1in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">On March 14, 2016, Sterling Construction Company, Inc. (the &ldquo;Company&rdquo;)
issued a press release and hosted a conference call announcing financial results for the fourth quarter and year ended December
31, 2015. The press release and transcript of the conference call are being furnished with this Current Report on Form 8-K as Exhibit
99.1 and 99.2, respectively, and are hereby incorporated herein by reference.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">The information provided in this Item 2.02 (including Exhibit
99.1 and 99.2) shall not be deemed to be &quot;filed&quot; for the purposes of Section 18 of the Securities Exchange Act of
1934, as amended, nor shall it be incorporated by reference in any filing made by the Company pursuant to the Securities Act
of 1933, as amended, other than to the extent that such filing incorporates by reference any or all of such information by
express reference thereto.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: left; margin: 0pt 0"><B>Item 9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font-size: 10pt; text-align: left; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: left; margin: 0pt 0">d) Exhibits</P>

<P STYLE="font-size: 10pt; text-align: left; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 20%; padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>Exhibit Number</B></FONT></TD>
    <TD STYLE="width: 80%; padding: 2.9pt 5.75pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt">Press release, dated March 14, 2016. (Furnished herewith)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left">March 14, 2016 conference call transcript. (Furnished herewith)

</TD></TR>
</TABLE>
<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">SIGNATURES</P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0in; margin: 0pt 0">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0in; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 50%; padding-right: 5.75pt; padding-bottom: 24pt; padding-left: 5.75pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 50%; text-align: left"><FONT STYLE="font-size: 10pt"><B>STERLING CONSTRUCTION COMPANY, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Date:&nbsp;&nbsp;March 14, 2016</FONT></TD>
    <TD>
        <P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">By: <U>/s/ Ronald A. Ballschmiede</U></P>
        <P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 37.25pt">Ronald A. Ballschmiede</P>
        <P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 37.25pt">Executive Vice President &amp;</P>
        <P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 37.25pt">Chief Financial Officer</P></TD></TR>
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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>Exhibit Index</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 20%; padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>Exhibit Number</B></FONT></TD>
    <TD STYLE="width: 80%; padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt">Press release, dated March 14, 2016. (Furnished herewith) </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left"><FONT STYLE="font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="padding: 2.9pt 5.75pt; text-align: left">March 14, 2016 conference call transcript. (Furnished herewith)

</TD></TR>
</TABLE>
<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><IMG SRC="logo.jpg" ALT=""></P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B><U>FOR IMMEDIATE RELEASE</U></B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B><U>STERLING CONSTRUCTION COMPANY, INC. REPORTS</U></B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B><U>2015 FOURTH QUARTER AND FULL YEAR RESULTS,</U></B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B><U>AND ANNOUNCES GUIDANCE FOR 2016</U></B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">THE WOODLANDS, TX &ndash; March 14, 2016 &ndash; Sterling Construction
Company, Inc. (NasdaqGS: STRL) (&ldquo;Sterling&rdquo; or &ldquo;the Company&rdquo;) today announced financial results for the
fourth quarter and full year ended December 31, 2015.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B><U>Fourth Quarter 2015 Financial Results Compared to Fourth Quarter
2014:</U></B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Revenues were $152.5 million compared to $153.6 million in the prior
period;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Gross margin improved to 8.0% of revenues, up from 2.4%;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Operating income was $0.1 million compared with an operating loss
of $5.6 million;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Net loss attributable to Sterling common stockholders was $1.1 million
compared with a net loss of $7.3 million; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">As Adjusted net loss per share attributable to common stockholders
was $0.06 (See Note 1); as reported EPS was a loss of $1.01 compared to a loss of $0.39.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B><U>Full Year 2015 Financial Results Compared to Full Year 2014:</U></B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Revenues were $623.6 million compared to $672.2 million;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Gross margin was 4.6% of revenues compared to 4.8%;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Operating loss was $14.4 million compared to $4.2 million;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Net loss attributable to Sterling common stockholders was $20.4 million
compared to $9.8 million; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">As Adjusted net loss per share attributable to common stockholders
was $1.05 (See Note 1); as reported EPS was a loss of $2.02, as compared to $0.54.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B><U>Year End 2015 Backlog Highlights:</U></B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Backlog at December 31, 2015 of $761 million was up 6% from September
30, 2015. Including $197 million of projects, where the Company was the apparent low bidder but the contract had not yet been signed,
2015 ended with a record high combined total of $958 million. The combined amount as of September 30, 2015 was $830 million. The
estimated gross margin in projects awarded in 2015 exceeds 8%, with a cumulative gross margin in backlog at December 31, 2015 of
more than 7%.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B><U>Business Overview:</U></B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Fourth quarter 2015 revenues decreased slightly compared to the
prior year period with year-over-year growth constrained by unfavorable weather conditions, particularly in our Texas and Hawaii
markets, along with the substantial completion of several large Texas projects in the first half of 2015, slightly offset by increased
revenues from projects under construction in Utah.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Gross profit of $12.2 million in the fourth quarter of 2015 was
up $8.5 million from the prior year period. Gross margin was 8.0%, up from 2.4% in the fourth quarter of 2014 reflecting improved
new contract bidding and stronger project execution.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">General and administrative expenses were $9.6 million in the fourth
quarter of 2015, or 6.3% of revenues, both of which were essentially in line with fourth quarter 2014 levels. Fourth quarter 2015
general and administrative expenses included third-party consulting fees related to strengthening the Company&rsquo;s financial
reporting processes and the revaluation of the liability to non-controlling interest owners.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Capital expenditures for the fourth quarter and full year 2015 were
$1.0 million and $8.1 million, respectively, compared with $2.3 million and $13.5 million, for the same periods in 2014. The lower
level of expenditures in the current quarter and full year reflects management&rsquo;s efforts to control expenditures and optimize
utilization of the existing fleet of equipment.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B><U>Financial Position at December 31, 2015:</U></B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Working capital totaled $30.3 million, including $4.4 million of cash and cash equivalents with
$11.6 million of availability under the credit facility; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Tangible net worth was $40.9 million.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B><U>CEO Remarks:</U> </B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Paul J. Varello, Sterling&rsquo;s CEO, commented, &ldquo;While our
fourth quarter is traditionally one of our slowest periods, it was further impacted by unseasonably wet weather in our Texas and
Hawaii markets. Despite those headwinds, we generated substantial year-over-year improvements in gross margin and backlog, and
we experienced our highest bidding activity in five years. Additionally, the increase in our fourth quarter backlog along with
several large project wins which we announced in the early weeks of 2016, positions us well to deliver improved earnings for the
full year. We also see a strong market for transportation infrastructure projects over the next several years. To take advantage
of this improving market, we will be exploring alternatives to strengthen our financial position to capture the many opportunities
that lie ahead.&rdquo;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B><U>Guidance for 2016:</U></B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Mr. Varello continued, &ldquo;Based on our current backlog and our
estimate of the quantity of work we expect to execute in the coming quarters, we anticipate full year 2016 revenues to be between
$700 million and $735 million and net income per share attributable to Sterling common stockholders to be in the range of $0.25
to $0.40. To sum up, we expect 2016 to reflect the positive benefits of the turnaround we have been executing over the past several
quarters. We look forward to providing updates on the progress towards our goals as the year progresses.&rdquo;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B><U>Conference Call :</U></B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">Sterling&rsquo;s management will hold a conference call to discuss
these results and recent corporate developments at 11:00 am ET/10:00 am CT, Monday, March 14, 2016. Interested parties may participate
in the call by dialing (201) 493-6744 or (877) 445-9755 ten minutes before the conference call is scheduled to begin, and asking
for the Sterling Construction call.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">To listen to a simultaneous webcast of the call, please go to the
Company&rsquo;s website at www.strlco.com at least 15 minutes early to download and install any necessary audio software. If you
are unable to listen live, the conference call webcast will be archived on the Company&rsquo;s website for 30 days.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">Sterling is a leading heavy civil construction
company that specializes in the building and reconstruction of transportation and water infrastructure projects in Texas, Utah,
Nevada, Colorado, Arizona, California, Hawaii, and other states in which there are profitable construction opportunities. Its transportation
infrastructure projects include highways, roads, bridges, airfields, ports and light rail. Its water infrastructure projects include
water, wastewater and storm drainage systems.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">This press release includes certain statements that fall within
the definition of &ldquo;forward-looking statements&rdquo; under the Private Securities Litigation Reform Act of 1995. Any such
statements are subject to risks and uncertainties, including overall economic and market conditions, federal, state and local government
funding, competitors&rsquo; and customers&rsquo; actions, and weather conditions, which could cause actual results to differ materially
from those anticipated, including those risks identified in the Company&rsquo;s filings with the Securities and Exchange Commission.
Accordingly, such statements should be considered in light of these risks. Any prediction by the Company is only a statement of
management&rsquo;s belief at the time the prediction is made. There can be no assurance that any prediction once made will continue
thereafter to reflect management&rsquo;s belief, and the Company does not undertake to update publicly its predictions or to make
voluntary additional disclosures of nonpublic information, whether as a result of new information, future events or otherwise.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font-size: 10pt; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 50%">
        <P STYLE="font-size: 10pt; margin: 0pt 0"><B>Contact:</B></P>
        <P STYLE="font-size: 10pt; margin: 0pt 0">Sterling Construction Company, Inc.</P>
        <P STYLE="font-size: 10pt; margin: 0pt 0">Jennifer Maxwell, Director of Investor Relations</P>
        <P STYLE="font-size: 10pt; margin: 0pt 0">281-951-3560</P></td>
    <td style="width: 50%">
        <P STYLE="font-size: 10pt; margin: 0pt 0"><B>Investor Relations Counsel:</B></P>
        <P STYLE="font-size: 10pt; margin: 0pt 0">The Equity Group Inc.</P>
        <P STYLE="font-size: 10pt; margin: 0pt 0">Fred Buonocore&nbsp;&nbsp;212-836-9607</P>
        <P STYLE="font-size: 10pt; margin: 0pt 0">Linda Latman&nbsp;&nbsp;212-836-9609</P></td></tr>
</table>
<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">(See Accompanying Tables)<BR CLEAR="ALL">
</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>STERLING CONSTRUCTION COMPANY, INC. &amp; SUBSIDIARIES</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0; text-indent: 0.5in"><B>(Amounts in thousands, except share and per
share data)</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended <BR>December 31,</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended <BR>December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">(Unaudited)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font-size: 10pt">Revenues&#9;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">152,488</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">153,612</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">623,595</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">672,230</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Cost of revenues&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(140,268</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(149,915</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(594,642</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(639,809</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0.2in">Gross profit&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,220</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,697</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">28,953</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">32,421</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">General and administrative expenses&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(9,560</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(9,581</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(41,880</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(36,897</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other operating (expense) income, net&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,588</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">256</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,460</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">252</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0.2in">Operating income (loss)&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">72</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,628</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(14,387</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,224</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Interest income&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">460</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">754</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Interest expense&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(913</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(247</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,012</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,123</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Loss on extinguishment of debt&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(240</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -7.55pt; padding-left: 7.55pt">Loss before income taxes and earnings attributable to non-controlling interests &#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(841</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,875</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(17,179</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,593</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Income tax expense&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(59</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(7</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(632</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0.2in">Net loss&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(856</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,934</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(17,186</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,225</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -7.55pt; padding-left: 7.55pt">Noncontrolling owners&rsquo; interests in earnings of subsidiaries&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(268</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,318</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,216</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,556</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net loss attributable to Sterling common stockholders&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(1,124</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(7,252</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(20,402</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(9,781</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss per share attributable to Sterling common stockholders&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(1.01</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.39</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(2.02</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.54</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: 0.2in">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Weighted average number of common shares outstanding used in computing per share amounts: &#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">19,690,025</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18,802,744</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">19,375,213</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18,063,466</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>STERLING CONSTRUCTION COMPANY, INC. &amp; SUBSIDIARIES&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>CONSOLIDATED BALANCE SHEETS&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>(Amounts in thousands, except share and per share data)</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">ASSETS</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Current assets:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 70%; font-size: 10pt; text-align: left; text-indent: 0.25in">Cash and cash equivalents &#9;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 12%; font-size: 10pt; text-align: right">4,426</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 12%; font-size: 10pt; text-align: right">22,843</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0.25in">Contracts receivable, including retainage&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">82,112</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">78,896</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -0.25in; padding-left: 0.5in">Costs and estimated earnings in excess of billings on uncompleted contracts&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,905</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">33,403</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: 0.25in">Inventories&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,535</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,401</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0.25in">Receivables from and equity in construction joint ventures&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,930</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,153</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Other current assets&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,013</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">5,278</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 30.4pt">Total current assets&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">134,921</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">156,974</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Property and equipment, net&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">73,475</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">87,098</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Goodwill&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">54,820</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">54,820</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other assets, net&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,068</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7,559</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 30.4pt">Total assets&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">267,284</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">306,451</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">LIABILITIES AND EQUITY</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Current liabilities:&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 16.9pt">Accounts payable&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">58,959</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">66,792</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 16.9pt">Billings in excess of costs and estimated earnings on uncompleted contracts&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">30,556</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,649</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 16.9pt">Current maturities of long-term debt&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,192</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">965</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 16.9pt">Income taxes payable&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">67</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,868</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 16.9pt">Accrued compensation&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,977</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,169</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -13.5pt; padding-left: 31.05pt">Other current liabilities&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,896</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,207</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 30.5pt">Total current liabilities&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">104,647</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">104,650</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Long-term liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -14.15pt; padding-left: 31.05pt">Long-term debt, net of current maturities &#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,107</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">37,021</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -8.1pt; padding-left: 26.45pt">Member&rsquo;s interest subject to mandatory redemption and undistributed earnings&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">50,438</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">22,879</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -14.15pt; padding-left: 31.05pt">Other long-term liabilities&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">338</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">753</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 30.95pt">Total long-term liabilities&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">66,883</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">60,653</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Commitments and contingencies</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Equity:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 15.65pt">Sterling stockholders&rsquo; equity:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -14.25pt; padding-left: 29.6pt">Preferred stock, par value $0.01 per share; 1,000,000 shares authorized, none issued&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -13.5pt; padding-left: 28.85pt">Common stock, par value $0.01 per share; 28,000,000 shares authorized, 19,753,170 and 18,802,679 shares issued&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">198</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">188</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -13.55pt; padding-left: 28.85pt">Additional paid in capital&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">188,147</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">205,697</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 16.9pt">Retained deficit&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(92,500</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(72,098</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 16.9pt">Accumulated other comprehensive loss&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(101</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 29.6pt">Total Sterling common stockholders&rsquo; equity&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">95,845</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">133,686</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 0.35pt; padding-left: 15.3pt">Noncontrolling interests&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(91</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7,462</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 12.9pt; padding-left: 15.35pt">Total equity&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">95,754</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">141,148</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 13.5pt; padding-left: 15.3pt">Total liabilities and equity&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">267,284</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">306,451</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>STERLING CONSTRUCTION COMPANY, INC. &amp; SUBSIDIARIES</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>Non-GAAP Reconciliation: Note 1</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>(Amounts in thousands)</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">(Unaudited)</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">This news release includes the measure &ldquo;Adjusted Net Loss
per share Attributable to Sterling Common Stockholders,&rdquo; which is deemed a &ldquo;non-GAAP financial measure&rdquo; under
the rules of the Securities and Exchange Commission, including Regulation G. This non-GAAP measure is calculated using GAAP amounts
derived from our consolidated financial statements. Adjusted net loss per share attributable to Sterling common stockholders has
limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations
or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations,
this presentation of adjusted loss per share may not be comparable to a similarly titled measure of other companies.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">During the fourth quarter, the Company amended its Myers LP partnership
agreement which, among other things, obligated the Company to purchase Myers 50% interest for $20 million upon the death or permanent
disability of one of its minority owners. This transaction resulted in the revaluation of Myers noncontrolling interest and the
reclassifications of $18.8 million from Equity to a long-term liability.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">While this non-cash transaction did not have an effect on the Company&rsquo;s
reported net loss attributable to Sterling common stockholders, it did require the $18.8 million to be included as an increase
in our net loss for purposes of computing our fourth quarter and full year 2015 earnings per share. This revaluation and reclassification
increased our loss per share by $0.95 and $0.97 in each of the aforementioned reporting periods, respectively.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">For further information, see Notes 2 and 13 to the consolidated
financials included in the Company&rsquo;s form 10-K for the year ended December 31, 2015.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B>As Adjusted net Loss per share Attributable to Sterling Common
Stockholders Reconciliation</B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">As Adjusted net loss per share attributable to Sterling common stockholders
is defined as net loss attributable to Sterling common stockholders, less the revaluation amount related to Myers, as described
above. We believe that certain investors consider as Adjusted net loss attributable to Sterling common stockholders a useful means
of evaluating our financial performance. The following table provides a reconciliation of net loss attributable to Sterling common
stockholders to as Adjusted net loss attributable to Sterling common stockholders for the period indicated.</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended December 31, 2015</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">(unaudited)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Net loss attributable to Sterling common stockholders</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Numerator:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; font-size: 10pt; text-align: left; text-indent: -13.7pt; padding-left: 27.4pt">Net loss attributable to Sterling common stockholders&#9;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 12%; font-size: 10pt; text-align: right">(1,124</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 12%; font-size: 10pt; text-align: right">(20,402</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -13.5pt; padding-left: 27pt">Revaluation of noncontrolling interest due to a new agreement or a put/call liability reflected in additional paid in capital or retained earnings, net of tax&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(18,774</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(18,774</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(19,898</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(39,176</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Denominator:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: 13.5pt">Weighted average common shares outstanding &mdash; basic&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">19,690</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">19,375</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 13.5pt">Shares for dilutive unvested stock and stock options&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 13.5pt">Weighted average common shares outstanding and assumed conversions&mdash; diluted&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">19,690</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">19,375</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: -13.5pt; padding-left: 13.5pt">Net loss per share attributable to Sterling common stockholder&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(1.01</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(2.02</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -13.5pt; padding-left: 13.5pt">As Adjusted net loss per share attributable to Sterling common stockholders</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -13.5pt; padding-left: 27pt">Numerator above</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(19,898</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(39,176</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -13.5pt; padding-left: 27pt">Adjust by: revaluation of noncontrolling interest due to a new agreement or a put/call liability reflected in additional paid in capital or retained earnings, net of tax</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">18,774</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">18,774</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.25pt; text-indent: -13.5pt; padding-left: 13.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(1,124</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(20,402</TD><TD STYLE="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -13.5pt; padding-left: 13.5pt">As Adjusted net loss per share attributable to Sterling common stockholders&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.06</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(1.05</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>




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<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exh_992.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.2</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR>
    <TD STYLE="vertical-align: top; width: 33%; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258">Sterling Construction Co., Inc.</TD>
    <TD STYLE="vertical-align: bottom; width: 24%; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258"><FONT STYLE="font-size: 10pt; font-weight: normal; color: #5D596A">STRL</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 27%; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258"><FONT STYLE="font-size: 10pt; font-weight: normal; color: #5D596A">Q4 2015 Earnings Call</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258"><FONT STYLE="font-size: 10pt; font-weight: normal; color: #5D596A">Mar. 14, 2016</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258"><FONT STYLE="font-size: 10pt; font-weight: normal; color: #5D596A"><I>Company&#9650;</I></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258"><FONT STYLE="font-size: 10pt; font-weight: normal; color: #5D596A"><I>Ticker&#9650;</I></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><FONT STYLE="color: #5D596A"><I>Event Type&#9650;</I></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: right; color: #101258"><FONT STYLE="font-size: 10pt; font-weight: normal; color: #5D596A"><I>Date&#9650;</I></FONT></TD></TR>
</TABLE>


<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0"></P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0">MANAGEMENT DISCUSSION SECTION</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Greetings and welcome to the Sterling Construction Fourth Quarter and Full
Year 2015 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow
the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">I would now like to turn the conference over to Jennifer Maxwell, Director of Investor
Relations. Thank you. You may begin.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0; border-bottom: Black 0.5pt solid">Jennifer Maxwell, Director of Investor
Relations</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Thanks, Brenda. Good morning, everybody. Participating with me on our call today is our
Chief Executive Officer, Paul Varello; and our Chief Financial Officer, Ron Ballschmiede.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Just as a reminder, today&rsquo;s conference call includes certain statements that fall
within the definition of forward-looking statements under the Private Securities Litigation Reform Act. Any such statements are
subject to risks and uncertainties, including overall economic and market conditions; federal, state and local government funding;
competitor and customer actions; and weather conditions, which could cause actual results to differ materially from those anticipated,
including those risks identified in the company&rsquo;s filings with the Securities and Exchange Commission.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Accordingly such statements should be considered in light of these risks. Any prediction
by the company is only a statement of the management&rsquo;s belief at the time the prediction is made. There can be no assurance
that any prediction once made will continue thereafter to reflect management&rsquo;s belief, and the company does not undertake
to publicly update those predictions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">And now, I&rsquo;d turn the call over to our CEO, Paul Varello. Paul?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0; border-bottom: Black 0.5pt solid">Paul J. Varello, Chief Executive
Officer&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Thanks, Jennifer. 2015 was definitely a rebuilding year for Sterling. We accomplished
many of the goals we have set for ourselves when we began executing this challenge turnaround. While we still have work ahead of
us, we&rsquo;re confident that we will continue to improve performance throughout this year and beyond. We&rsquo;ve taken a number
of important steps to &ndash; that will allow us to maintain our earnings momentum. One of those steps was a significant strengthening
of our senior management ranks. We&rsquo;ve added six very experienced executives in key operating roles. With our team now firmly
in place, we&rsquo;re committed to delivering positive earnings in 2016 and beyond.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">A former mentor of mine once told me that safety performance was one of the best measures
of management&rsquo;s ability to manage. I firmly believe he was right. In spite of the many operational challenges, we faced in
2015, we make sure that safety remains the top priority for Sterling and it paid off.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">I&rsquo;m pleased to report that our safety performance this past year markedly improved.
Specifically our last time, our recordable injury rates were both down by more than 13% when compared to the prior year. We continue
to focus on safety, not only because it&rsquo;s the right thing to do for our employees but also because it ultimately leads to
a stronger, more disciplined company and the solid financial performance.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">As I said on our earlier calls, this year we focused less on top-line growth and more
on improving the bottom-line profitability. We tightened our procedures and controls for project selection, estimating, project
execution and contract administration. As a result, we experienced improved earnings even with the decrease in revenue of approximately
$49 million compared to the prior year.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0">We also pleased with the results of our project selection, and bidding efforts which
yielded average gross margins in excess of 8.8% on projects we won in the second half of the year after our tighter controls we
put into effect. Overall, our backlog at the end of 2015 plus the new awards that were won in Q3 and Q4, but not yet entered into
backlog totaled a record high of $958 million and carried a combined margin of more than 7.4%. As a result, we anticipate increased
revenue and earnings improvement in 2016 and beyond.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">With regard to our business environment and our industry, we are greatly encouraged by
the dramatic increases in spending to be made at the federal, state and municipal levels to restore our nation&rsquo;s decaying
infrastructure. These investments are long overdue and are critical to the economic future of our country. Of course they also
create a substantial tailwind of growth opportunities for Sterling. In order for us to take full advantage of those improving markets,
we are exploring alternatives to further strengthen our financial position, so that we can make the most of the many opportunities
that lie ahead.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">In conclusion, our turnaround efforts in 2015 have laid a solid foundation for sustained
revenue and earnings, and are already starting to show meaningful results. With our return to profitability, we are now confident
that we can also provide guidance on forecasted earnings and revenues for this year. To be clear, we are not content that our forecasted
level of earnings for this year is adequate, but the fact that the numbers are positive is an important step in the right direction.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">There is little doubt that Sterling is well-positioned to generate improved profitability
and shareholder value in the years to come.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Now, I&rsquo;d like to turn it over to our CFO, Ron Ballschmiede, to provide the summary
of our financial results. Ron?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0; border-bottom: Black 0.5pt solid">Ronald A. Ballschmiede, Chief Financial
Officer &amp; Executive Vice President&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Thanks, Paul, and good morning, everybody. Let me take you through our improving financial
results for the fourth quarter and the year.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Revenues for the quarter of 2015 were $153 million, essentially consistent with the fourth
quarter of 2014. Our full year revenues totaled $624 million, down $48 million from 2014. This year-over-year decline reflects
one of our objectives on our turnaround progress, specifically, the selective and new opportunities by focusing on the right balance
of risk and reward.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">As Paul mentioned, the improving strength of the transportation infrastructure market
manifested in our strong year-end backlog, which when combined with onsite 2015 awards totaled $958 million. This record amount
of combined backlog has an average gross margin of just over 7%, positioning the company for continued operating performance, improvements
in 2016.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Gross profit for the fourth quarter totaled $12.2 million or 8% compared to $4.6 million
for the full year. Perhaps a more meaningful margin comparison looks back at our preceding quarter. The third quarter of 2015 gross
margin was 8.2%. While down slightly, this was consistent with our expectations, given the portion of our fixed costs and seasonal
&ndash; and the seasonality of our revenues. The seasonality impacted decline in our revenues from the third quarter of 2015, totaled
$24 million or a decrease of over 13%.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">While the first quarter of 2016, we&rsquo;ll experience a similar seasonality impact,
we expect full year 2016 revenues to increase significantly. Our general and administrative expense for the fourth quarter of 2015
was $9.6 million, essentially flat with the comparable quarter of 2014. Other operating expense increased significantly in the
fourth quarter of 2015 to an expense of $2.6 million, compared to net operating income in 2005 of $300,000.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0">The increase was driven by the strong fourth quarter earnings, from our 50% owned subsidiaries.
Fourth quarter 2015 number interest included in the other operating expense category, totaled $3.4 million. Approximately $1 million
of the fourth quarter increase was offset by lower non-controlling owner&rsquo;s interest reported below the net loss line. More
about changes in reporting for our numbers interest in a few moments.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operating income for the fourth quarter of 2015 was essentially breakeven at $72,000
compared to a loss of $5.6 million in the comparable period of 2014. Again, when compared to the 2015 prior sequential quarter,
operating income was down $2.3 million, essentially the impact of the $24 million seasonal decline in revenues. Net interest expense
for 2015 fourth quarter was $913,000 compared to the fourth quarter of 2014 of $247,000. The increase reflects the higher interest
rate of our asset based lending facility, which was put in place in 2015, and changes in our average debt balance. The summation
of all that resulted in fourth quarter net loss attributable to Sterling&rsquo;s common shareholders of $1.1 million and an adjusted
net loss per share of $0.06 compared to fourth quarter of 2014 losses of $7.3 million or $0.39 per share.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Finally, during the fourth quarter, the company amended its Myers partnership agreement,
which among the other things, obligated the company to purchase Myers 50% interest for $20 million, upon the death or permanent
disability of one of its minority owners. This transaction resulted in the revaluation of Myers non-controlling interest and the
reclassifications of $18.8 million from an Equity account to a long-term liability.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">While this non-cash transaction did not have an effect on the company&rsquo;s reported
net loss attributable to Sterling&rsquo;s common shareholders, it did require the $18.8 million to be included as an increase in
our net loss for the sole purpose of computing our fourth quarter and full year 2015 earnings per share. The revaluation and reclassification
increased our reported loss per share by $0.95 and $0.97 in each of the aforementioned reporting periods, respectively.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">On the positive note, to the story only an account would enjoy, prospectively, all of
our non-controlling interests from both our Myers and RHB subsidiaries will be presented in the same place on our consolidated
statement of operations, specifically as a component of operating income.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Now let&rsquo;s move into 2016. We believe that we have made a good progress with our
turnaround activities. While we have more to be accomplished in 2016, we also believe that the business has progressed sufficiently,
to provide us with the confidence and the ability to provide 2016 guidance.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">As you saw in our earnings release, we expect 2,000 [sic] 2016 revenues to total $700
million to $735 million, representing an increase of 15% over 2015 based upon the midpoint of our 2016 revenue guidance. Additionally,
we expect 2016, reported net income per share attributable to Sterling&rsquo;s common shareholders, to be in the range of $0.25
to $0.40 per share and average shares outstanding for the full year of approximately 20 million shares</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">With that, I&rsquo;ll turn it back to Paul.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0; border-bottom: Black 0.5pt solid">Paul J. Varello, Chief Executive
Officer</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Thanks, Ron. Now, we&rsquo;ll be happy to take your questions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0">QUESTION AND ANSWER SECTION</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. [Operator Instructions] Our first question comes from the line of
William Bremer with Maxim. Please go ahead with your question.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; William Bremer&gt;: </B>Good morning Paul. Good morning, Ron.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A &ndash; Paul J. Varello&gt;: </B>Good morning.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A &ndash; Ronald A. Ballschmiede&gt;: </B>Good morning, Bill.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; William Bremer&gt;: </B>Let&rsquo;s first start out with the Myers transaction
here. Does this transaction potentially differ a new credit facility knowing that you were sort of needed a nice run rate of positive
EBITDA?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>I don&rsquo;t think it does. I think, with the changes that we&rsquo;ve
had over time with both of our 50% subsidiaries, we essentially pay out the portion of earnings to our partner that they earn during
the year, slight delay, but essentially paid out. So in reality, our cash earnings aren&rsquo;t going to change. As a matter of
fact they will be a little bit more predictable through a relatively steady distribution process rather than a bit lumpy in the
past. So, I would suggest that &ndash; if you start with your EBITDA calculation using operating income, it probably matches the
cash flow much better than when it was a bit more complicated with some of the information above the line, above the operating
income line and some below the operating income line.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Let me just add one another thing, when I use the term, a transaction
only an accountant would love, that is a perfect example because in this new agreement and here is the agreement we have with other
JV partner, in that there is &ndash; there is a buyout provision for a specified amount, $20 million in both cases. Both of those
in the event are there either death or permanent disability are covered by insurance policies. So in terms of the real exposure
to the company, it is nil, it is zero. But from an accounting standpoint, again beyond my pay-grade, sadly, it has to be treated
this way. So I just want to assure shareholders and investors in the market that we have not taken on liability that we have not
insured against.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>And Bill, let me add one more thing that probably will be helpful for
everybody on the phone to understand 2016&rsquo;s information and guidance. With all of our member interest now reported as a component
of other operating income or expense ...</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>All right.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>There will be essentially nil of non-controlling interest below net
loss.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">And we expect that the component and other expense next year will be somewhere in the
range of $6 million to $7 million for both of our 50% subsidiaries combined. So, that should help people understand, our overall
results as oppose to a bit above and a bit below and all went back in 2016 forward. And of course, we&rsquo;ll help you with that
as we progressed throughout the year.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; William Bremer&gt;: </B>Perfect Ron. I was getting tired of using the
force. My second question is on your legacy backlog. Can you give us a sense of where it stands? And are you guys on track for
really and truly getting a nice bulk of it done in the first half of 2016?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A &ndash; Ronald A. Ballschmiede&gt;: </B>Great question Bill. And yes, we are.
So, we had &ndash; as we racked up our, of course all backlogs since our unsigned where it&rsquo;s all profitable obviously. We
have a backlog at the end of the year about $86 million of backlog on some of those legacy projects, we kind of use the same name
as you do every now and then, they&rsquo;re essentially nil on the gross profit side. And we would expect a substantial portion
of that to be burned off in the first half.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; William Bremer&gt;: </B>Okay gentlemen. Thank you.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. Our next question comes from the line of Tahira Afzal, KeyBanc.
Please go ahead, with your questions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; Tahira Afzal&gt;: </B>Hi, Paul and Ron.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A &ndash; Paul J. Varello&gt;: </B>Good morning, Tahira.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A &ndash; Ronald A. Ballschmiede&gt;: </B>Good morning.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; Tahira Afzal&gt;: </B>First question is really in regards to what you
qualitatively talked about Paul, really the momentum you&rsquo;re seeing in the market. You know, given that you expect a pretty
healthy revenue increase this year. I&rsquo;d love to get a sense of whether you can still grow backlog, and why you&rsquo;re funding
so much?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yeah. We have been looking at &ndash; the good news, of course, is
that the backlog and the revenue forecasted is up substantially and that&rsquo;s always a wonderful opportunity, but with that
comes with a need for working capital liquidity, because we don&rsquo;t want that to be any sort of governed on our ability to
continue to grow.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">We have room in our bonding capacity, plenty of headroom there, but we want to make sure
because of this record increase as these jobs startup later in the second quarter &ndash; first quarter and second quarter is where
we see these ramp ups and where we are focusing very hard and making sure that we have the liquidity and that it doesn&rsquo;t
limit us from continuing to grow the company carefully and profitably. I might add because if you grow just top line without regard
to bottom line as we&rsquo;ve said before you get into trouble.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">I will tell you that we are looking at things to make sure we can continue to take advantage
of what looks like a very strong market for the next five years. We are very comfortable and we know with our board last weekend,
and had a strategy session looking at those investments and we are very bullish, not only the federal investments but what we are
seeing coming out of the States with their gas taxes and what&rsquo;s happening in the municipalities. It&rsquo;s all directionally
very strong for us.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Got it.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>I will add one other thing. As you probably can &ndash; could drive
from our dual award level last year when you include the unsigned, most of which is now signed, the duration of our backlog is
starting to extend. That&rsquo;s a good thing, gives us little bit more predictability, obviously even with the 15% increase in
revenues, we&rsquo;re going to burn reported revenue somewhere in that average between guidance of $715, that&rsquo;s a really
great fact. And I think, the power is in the margin of that backlog, particularly reflecting the earlier answer that I gave to
Bill on, burning-off that low margin or nil margin $80-some million.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">But a couple other interesting statistics, at March 31, 2015, we had about $79 &ndash;
well, just under $800 million of backlog and our embedded margin at 6%. Obviously, we ended 2015 with just short of, well, right
around $958 million at 7.4% and a second half load at 8.8%. And that second half load is what we&rsquo;re continuing to look at
and expect to experience here in 2016 forward.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, the margin of this when you combine all those factors should drive some nice earnings
and I think, the revenue will come with that big backlog number.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Yeah, that sounds great, Ron. Ron and I guess the second question is
for you, in a sense, within your guidance, any color on assumptions around some of the very notable claims you think you might
collect somewhat on?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>We haven&rsquo;t factored any &ndash; or I should say, our guidance
doesn&rsquo;t include any upside coming out of settlement of any claims. That obviously this take time, and we hope to get them
done and report to you after that. But let me give you a few other pieces of the underpinning of our 2016 guidance. And I&rsquo;m
sure, you&rsquo;ll be interested in as you try and make sure that your model consistent with the top-line and the bottom-line,
we gave you. See, if we can feel in some in the middle.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">These are all plus or minus ranges, but we would expect our gross profit to be somewhere
in the 7.5% of margin range for the full year that of course includes some of that $86 million push or all that $86 million being
burned off at 0%. And we do that math, it&rsquo;s between 10% to 15% of our revenue. So, it&rsquo;s really &ndash; for the rest
of the business, really performing nicely. From a general and administrative cost category, we&rsquo;re looking in around 5.5%
of revenue. So again, there is a bit of a range around that. And then, moving down the income statement, we already chatted a little
bit about the $6 million to $7 million of expectations of our other &ndash; essentially our minority interest now reported above
the operating income line.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Our interest expense, give or take $3 million, essentially no income tax for the year.
And finally, CapEx in the magnitude of $10 million to $11 million. So, went through those fast, but hopefully that will help everybody
understand kind of where our metrics are forecasted to run through in 2016.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; Tahira Afzal&gt;: </B>Ron, if only all my company would &ndash; this
helpful as well. So, thank you for that. And I&rsquo;ve got a couple of more questions, but I&rsquo;ll hop in the queue pretty
excited about guidance. Thanks.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. [Operator Instructions] Our next question comes from the line of
Vahid Khorsand with BWS. Please go ahead with your questions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; Vahid Khorsand&gt;: </B>Hi, guys. First off, I mean, this is pretty
incredible of where you were last seen and where you are now, so great job. If you could just provide a little bit more color on
the $2.6 million on other expense. So, you&rsquo;re saying that was essentially from your non-controlling interest is now going
to be above the line included in that going forward? Right?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>That&rsquo;s correct and that&rsquo;s the $6.7 million total next year.
Let me give you a little framer up and around that. Even though geographies is different in our income statement for 2015, for
the full, we had charge to other operating income of just over $4 million, and non-controlling interest of $3.2 million, so in
total about $7.5 million. Both entities just had a great year and a fantastic fourth quarter that made a big portion of that into
fourth quarter.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay. And then next question, you had like $2.7 million in landfill
and in receivable collected. Can you &ndash; do you have any inclination on what else in the first half of the year could be possibly
sold to bring an extra cash?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yeah. Let me answer part of that and maybe you could weigh in as well.
We certainly still have some land that is non-strategic, non-core, and we&rsquo;ll be looking at that. You really have to match
the market. We don&rsquo;t have a fire sale on those assets. But we think that there is a few more pieces, but not a lot.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">I think the bigger opportunity continues to be in our fleet of construction equipment.
We have gone through and looked at our fleet. We are now looking at the right balance on what you should own versus what you should
lease or rent. And this year is a year in which we expect to shift that balance more towards leasing or renting equipment. And
that will monetize more of those assets and allow us to really gain our math. The difficulty at least in the near-term is that
they also represent the collateral on our lending, and so you can&rsquo;t be overly aggressive in selling that stuff, but I would
tell you that since we&rsquo;re only allowed to borrow about 65% of the value of that equipment, it&rsquo;s always a good and you
are paying 12% money, it&rsquo;s always a good idea to liquidate it where you can and use those proceeds to pay down that debt.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0">That&rsquo;s sort of one of our key objectives this year. Although you didn&rsquo;t quite
asked the question, I want to make sure, it&rsquo;s clear too that I&rsquo;m neither Ron or I are thrilled with paying 12% interest
particularly in a market like this and Ron has some plans, would you might sharing with everybody what your thoughts are regarding
how we eventually get away from this debt arrangement or obviously the interest rate.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yes. And maybe I&rsquo;ll step back and kind of take in total of that
and exact, and let me just add one thing on the CapEx and related question you had, our 2014 and 2013 CapEx was sort of that $13
million, $14 million category. So, even with our 15% anticipated increase in revenues our CapEx spend is going to be down from
that &ndash; kind of that level when $13 million and $14 million, which I think is good and reflection of what Paul talked about.
It just makes sense and it&rsquo;s more financially attractive, no matter what interest rate you have to rent or lease the right
equipment and own those that are strategically important.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">I think on a &ndash; let me start from a bigger capital perspective. We certainly see
a strong market for transportation infrastructure projects over the next several years. And to take advantage of that improving
market, we&rsquo;re exploring alternatives to strengthen our financial position and capture some of these opportunities that Paul
spoke to.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">As we look forward to take advantage of this, we&rsquo;re talking about both tactical,
as well as strategic approach to ensuring &ndash; to assuring that our balance sheet is positioned and to be able to support the
continued backlog that we &ndash; increase that we have and the growth that we expect.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, from a tactical standpoint, we&rsquo;re going to continue to go after and improve
our management of contract capital, specifically our contract revenues including retainage and billing processes, and the timing
of those billings to accelerate and reduce our cost to bill and collect. But, we&rsquo;re also going to continue to commit to review
and were appropriate monetize some of the assets that was asked earlier. But strategically, it is important that we increase our
financial flexibility.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Our performance over the past several years has limited our borrowing capacity and somewhat
our bonding levels, which of course limit our financial flexibilities, and while these constraints are certainly workable to continue
a sustained longer-term recovery plan, we want to take advantage of this market that we&rsquo;re seeing, and have the capital available.
And so, we are able to continue to invest in these opportunities.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, we&rsquo;re investing in additional opportunities to accelerate our liquidity position.
Some of those will be coming out of the pure cost of capital, driven by both capital opportunities and debt opportunities. The
reality is given our sustained losses in the last three years or four years, the turnaround is in good shape. But it&rsquo;s still
a bit of show me, right for &ndash; so, we expect certainly the second, third &ndash; second quarters and third quarters to be
pretty significant. So, above that late fall &ndash; late summer or early fall time would be, when I would expect to have that
demonstrated performance and more importantly to have the rewards continue at the pace that we&rsquo;ve been looking at lately.
And all that says, you got to &ndash; you got to have the right capital position to not only &ndash; we&rsquo;re not happy in just
sustaining, we need to be able to take advantage. So, we&rsquo;re going to be doing a lot of looking and strategy around, how we
go about that. So, we&rsquo;re not worrying about, topping out on liquidity or binding activities, all those related things, but
we&rsquo;re going to be more aggressive than looking how to reduce our cost to capital, certainly interest is one of those items
with a 12% plus cost.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>I mean, I was actually going to ask you about your capital structure?
And going forward, those are going to be my next question, but somehow, I&rsquo;ll ask you about a macro question. Being significantly
operated in Texas and with everything that&rsquo;s gone on with the shale industry and the oil industry down there, are you seeing
any benefits to cost of labor and possibly cost of equipment or material?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>I&rsquo;d say, first of all cost of labor really was part of a contributing
factor back a few years ago where there are losses. Our estimates did not foretell or foresee the sort of labor escalation we unfortunately
were hit with, when the shale play was really in its boom cycle and folks that we would have normally hired to do our work, when
meeting the state for the big shale plays, that has completely reversed itself. Our labor rates have stabilized, in fact in the
couple of cases, gone down slightly.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, yes, the labor situation is both plentiful broadly. There were still unique categories
of people where we don&rsquo;t quite have the skill sets in large numbers we&rsquo;d like, but generally the labor situation is
much better. The other benefits though are things like renal equipment with both the mining and the drilling business somewhat
slower. The amount of equipment that&rsquo;s available for lease is considerably larger and fits our needs much better. In addition,
fuel costs, which were a large part of our operating costs continue to be low, and vendors are willing to cut very attractive deals
for prolonged commitments on field, which we&rsquo;re able to predict with the work we got in backlog.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">And so, it&rsquo;s generally speaking in Texas, which by the way, this year because of
the way our other businesses have grown, Texas is about 33% of our revenue, which used to be north of 40%. So, and there&rsquo;s
nothing wrong with Texas. It&rsquo;s just the other guys are &ndash; have done so well that Texas is now, about a third of our
revenue and is going to be an important, continued important factor going forward.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>And my final question, Paul, you are in year two of your three years
our initial contract, any plans to continue that or any changes?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A &ndash; Paul J. Varello&gt;: </B>My wife reminds me I celebrate &ndash; we will
be celebrating my 73rd birthday in a few months. And she says, oh man, how long are you going to do this and I say until God says
no. So, yes, I&rsquo;m having a good time, nothing beats success, nothing beats seeing the proofs of your effort payoff and with
the good Lord keeping the healthy, I intend to stick around for a while.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">In addition, I would tell you, I have surrounded myself which gigantic talent. Of the
six executives that I put in yesterday or last Friday we announced a new Chief Operating Officer, his name is Con Wadsworth. Con
has been with our company for a very long time as President of our most successful subsidiary RL Wadsworth. Con is now taking over
as COO, that&rsquo;s an important strategic move for us, and it gives us depth at the executive level. We also have added Ron,
with just impeccable track record and great experience and we&rsquo;ve added Joe Quatela, Senior Vice President of our Strategy,
Business Development. So, the depth of this organization is such that I hope, that if my wife is right about the old man and he
runs out of guess, there is enough continuity here right, I feel good about that.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">The other three executives are all in line, operating positions and the bench is stronger
than I think it&rsquo;s ever been. So, I&rsquo;m comfortable but that doesn&rsquo;t mean, I&rsquo;m bailing. Thank you.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Thank you.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. And our next question comes from the line of John Rogers of D.A.
Davidson. Please go ahead with your questions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; John Bergstrom Rogers&gt;: </B>Hi, good morning.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Hi, John.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Hey, John.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; John Bergstrom Rogers&gt;: </B>Couple of things. Just first of all I
guess, maybe for Ron. What&rsquo;s your assumption for interest expense than this year into 2016?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Well. Right now, it is for the first &ndash; majority of the first
three quarters of the year it sort of status grow we&rsquo;re running &ndash; around $900,000 in the fourth quarter it will be
a bit less as we go up and down with our line for the first part of it. And then hopefully by expectedly by sometime in Q3, we
will come up with a better solution. We&rsquo;d like to do it sooner and maybe we&rsquo;ll have a chance since to parcel some out,
but that&rsquo;s sort of what&rsquo;s embedded in our assumptions at this point.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; John Bergstrom Rogers&gt;: </B>Okay. And then, the other thing is, as
you look at 2016 I mean, based on your revenue guidance something 15% top-line growth. It sounds, if those &ndash; that&rsquo;s
heavily weighted into the third quarter and fourth quarters, I mean, it could be seen 20%, 25% growth at that point? Is that what
&ndash; is that what the backlog would suggest?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yeah. Pretty much. Yeah, I&rsquo;ve done that...</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Yeah.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>I have done that exact math. But, the Q1 should look like Q4, essentially.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Yeah.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>And then of course...</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>You get the benefits of having all those new work start. So we would
expect a very good Q2 and Q3, and right now the view is a profitable Q4.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>But, when &ndash; John, let me add a little bit to it. Our work in
backlog is the biggest driver of those earnings. So it&rsquo;s predictable as opposed to [indiscernible] to come. We don&rsquo;t
&ndash; if you can&rsquo;t book work by the end of the second quarter, there is very little chance you can burn most of it or generate
any revenue in the third quarter and fourth quarter.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So typically what you see in earnings doesn&rsquo;t have much exposure in &ndash; revenue
and earnings doesn&rsquo;t have much of a back on what we got to land to make that happen. Our jobs are over two years long on
average. And so, lot of it is sitting there in the backlog. I think the bigger challenge John is to make, damn sure, we execute
appropriately to the margins we&rsquo;ve got and maybe to a little better, which I think we&rsquo;ve got to do now and do better,
which is something that I&rsquo;m looking forward to.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">But I don&rsquo;t want to left with the idea that we&rsquo;ve got to go find a lot of
stuff, that&rsquo;s going to be too much for us in terms of revenue or earnings this year. It&rsquo;s pretty much in the house,
not all of it, but pretty much in the house.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay. Yeah, that&rsquo;s what I was trying to get to. So, that&rsquo;s
very helpful. And then, just in terms of the working capital, you&rsquo;ve done a great job in sort of driving some of the cash
out of that. And I am wondering how much is left there because it&rsquo;s &ndash; this sort of earnings level that you are talking
about, I mean it sounds like could be about maybe slightly less than what you are looking at in terms of CapEx. Is that right or
is there more to &ndash; is there ways that you can generate cash?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Well, I think we still have some opportunities in our contract capital,
and for those that don&rsquo;t know my definition, as I look at our investment in contracts, it includes all of our receivables
including retainage, our inventory which is not very significant based on that calculation, our positions in the contracts and
payables.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">As I look at that today, we have some subsidiaries that do extraordinarily well. We have
some of our largest subsidiaries that have some ketchup work to do and certainly those legacy projects affect that calculation
also. So, we have some room in contract apple to make it better. And I think with con &ndash; reviewing contracts and our team
continuing to press on the asset side and can we get those bills out, if we collect those bills and be a little bit more aggressive
in doing that. We have &ndash; we&rsquo;ll have some money to put on the balance sheet.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>I would also add that, John, and nothing beats our focus on a cash
more than 12% interest because up until now we of course thinking that interest was an incidental, and maybe it was. It is not
an incidental when it cost is almost $4 million a year in charges. So, it&rsquo;s got a gigantic amount of focus and the awareness
is there today that wasn&rsquo;t there a year ago when I got this job.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>And that may be an important reminder on other parts of seasonality
which is the cash side of seasonality. While our fourth quarter and first quarter are significantly our weakest revenue quarters,
our fourth quarter is our best cash generation quarter was this year. Because all the jobs are knows that are have some weather
issues and we&rsquo;ve had a lot of that in the fourth quarter, Texas, Hawaii, and then, of course, get in the mountains, we&rsquo;ve
a pretty much slowdown, which means you&rsquo;re not spending money, you&rsquo;re collecting it. Of course, the flip side of that
is come to the back half of the first quarter, you&rsquo;ve started ramping projects. So, as you look across the year, the &ndash;
our most challenging, maybe it&rsquo;s a bad word, but the outflow of capital for projects is in end of 2Q and as we ramp up in
early parts of Q2, then it flattens out, then it comes back the other way in the fourth quarter.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, with that, we were happy with ending the year with essentially only in the term loan
having borrows under it, that&rsquo;s different today as we would expect. But there is such seasonality side of the cash flow,
that never forget about, and is different than revenue side.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay. And then, last thing if I could. Paul, you mentioned 35% of your
revenue was &ndash; 33% of your revenue was in Texas, what portion of the $958 million in your book of business is Texas?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>It&rsquo;s about that same amount. It&rsquo;s about the third. Yeah,
I don&rsquo;t have the numbers in front of me, but I remember looking at, when we had that back in, they didn&rsquo;t move the
needle very much to meet the direction. So, I&rsquo;d say about the third.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay. And so, I mean if you look at the business over the next couple
of years, you would expect to &ndash; I mean, the rough distribution that you have now between Texas [indiscernible].</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yeah, but on the somewhat different metric, but Texas is growing in
spite of everything that people read about the shale play being a real deflator, Texas is growing still very strong compared to
a lot of places and population growth drives a lot of this investment in infrastructure.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">And we&rsquo;re confident that Texas will continue to be a critical part of our business
going forward and a lot of spend in Texas, not only, maybe in spite of the federal &ndash; lack of money at the federal level,
the state has really more than compensated for, as have the municipalities, who need the infrastructure, they&rsquo;re going to
allow the people to grow. They need more roads. They need drainage systems. They need all the things that come with population
growth.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, I think, an important driver is looking at where&rsquo;s is the population likely
to grow, and we think, we&rsquo;re in many, many respects exactly in the right geographic footprint, not only in Texas, but throughout
the Southwest.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay. Great. Thank you very much. Congratulations on the year.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Thanks, John.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. And next we have follow-up questions from Tahira Afzal of KeyBanc.
Please go ahead with your questions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q &ndash; Tahira Afzal&gt;: </B>Great. Thank you very much. So, first question
is, Ron you&rsquo;d said that the duration of backlog is stretching a bit, which I agree is great. But you know, if I &ndash; I
guess, if I look at 2015 backlog, up around roughly $760 million, you know, it kind of compares to the same level of 2014. Last
year, you were able to generate $623 million or so in revenue, so with backlog now more stretched, how do we get comfortable around
your revenue run rate?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yeah. I think, as Paul mentioned, the majority of our revenue comes
from our backlog. I think, the, well, the other element of it is, as we hit these, as we have got these new award, these unsigned
awards now mostly signed in the first quarter, that doesn&rsquo;t automatically translate into revenues. There is &ndash; it ramps
up relatively, I will call it slowly, quarters plus because some of these projects, there is some design element to it and other
things like that. So I think as we plot all these out, you&rsquo;re always susceptible to seasonality and range and all the delays
by customers, by our clients. But I think with this amount of backlog and the distribution of it, much more sweet spot, projects
around in the double-digit millions it does become more predictable simply by the law of a bunch of smaller numbers. So we&rsquo;re
pretty comfortable with that burn rate.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Got it. Thank you, Ron. And I guess second question is in regards to
strategy. I know you&rsquo;ve kind of laid out exploring alternative financing options or what have you. Can you talk a bit strategically
about, as you&rsquo;ve settled in Ron and as Paul and you have work together, can you comment a bit on what strategy you&rsquo;re
looking at, what speeds are you looking at doing more design build, more partnerships?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Yeah, I&rsquo;d say we have &ndash; recently in anticipation of our
strategic planning session, which we had at the board just last week, we did a gigantic amount of drill down on where have we been
making our money. And what are the kinds of work we do, what are our sweet spots and how do we maximize those kind of returns and
I, for one, having been here now just a little over year was pleasantly surprised by how much we had discovered in that about where
we make our money and doing, silly as this may sound, doing more of that and less of the things where we don&rsquo;t do well or
lose money is sort of a &ndash; one of our fundamental strategy is, do more of the good stuff and less of the bad stuff, and none
of the bad stuff. But, I would tell you that the design build projects tend to be better margins. They&rsquo;re a little slower
ramping up, because you&rsquo;ve got a design before you can really move to the field, but they always hold better margins, they
allow us to influence through the design to meet the unit cost.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, in many, many respects we like those kind of jobs. We have great relationships with
some of the design houses in the various areas, where we work and in the various places we work. We like the airport work, the
port work, it&rsquo;s always got good margins. And then we still believe within roads and highways, particularly bridges, we do
well, if we can be disciplined and in where we select the projects we want to bid, instead of simply chase everything than moves.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">We&rsquo;ve also set for ourselves minimum margins. We will not allow ourselves to get
caught up in desperation bidding. So, we are setting margins that are quite high in order to drive the market where we want it
to go. Yes, we may lose a few more jobs, but so be it, give me jobs with better returns and fewer of them as long as I make it
at the bottom-line, I&rsquo;m comfortable with that.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">So, directionally we know where we have to go, we know the kind of businesses we have
get in the geographies and we&rsquo;re going to be pursuing those with great vigor this year.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Thank you, Paul and Ron.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>Thank you.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. And next, we have follow-up questions from William Bremer with Maxim.
Please go ahead with your questions.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Yes and just adding on to that last question, I wanted to go into your
bridge work as well as if you could give us an update on your water infrastructure projects, what you&rsquo;re seeing out there
and maybe what is your capacity on that front?</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;A&gt;: </B>First of all the bridge work is &ndash; as I said earlier, our Wadsworth
business units probably the strongest preeminent bridge builders, maybe, I&rsquo;ll in the country because I&rsquo;m the CEO of
this company. But certainly the strongest within our company and with Con now as our &ndash; Con Wadsworth now as our COO, he&rsquo;s
moving that skill set across all of our subsidiaries. So that we execute bridges which are good margins, effectively using our
know-how that we mostly have developed in Wadsworth, not exclusively, but mostly.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Second, on the waterworks, the kind of projects we&rsquo;re seeing are really flood control
here in Texas. Texas, as many of you know particularly this part of Texas here in Houston is described as billiard table. And so
if you get about more than four inches of rain you can count on local flooding.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">And part of that is the infrastructure is not kept up &ndash; flood controlling infrastructure
has not kept up with the population growth which has paved over a lot of the natural areas that used to absorb the rainfall. So
50 years ago, we had a lot more forests and open spaces. Today, it&rsquo;s paved over with shopping malls and housing. And as a
result, there is considerably more run-off. That is one of our sweet spots that is frankly the way we grew our business here in
Texas 27 years ago, was on that very work.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">It&rsquo;s probably our strongest capability and we&rsquo;re exactly in the spot we want
to be. Knowing what our top side is build on capacity, I think the limiting factors might be bonding, although today we are &ndash;
we still have a several hundred million dollars of capacity. We have a great partner and travelers as our bonding, security company
and they have been tremendously supportive as we&rsquo;ve grown and come back to profitability. So, it&rsquo;s one of the illumining
factors, the other ones, Ron has already addressed is making damn sure that have the balance sheet and the working capital to take
advantage of that. But I&rsquo;m very comfortable that the opportunities for what we do well are really come and add us in big
measure.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><B>&lt;Q&gt;: </B>Okay. Paul, thank you.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. And it seems that we have no further questions at this time. I&rsquo;d
like to turn the call back to Paul Varello for closing remarks.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; margin: 0pt 0; border-bottom: Black 0.5pt solid">Paul J. Varello, Chief Executive
Officer&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Brenda, thank you very much. And everybody on the phone, thank you very much. I&rsquo;d
like to again remind you that, if you have follow-on questions, you can reach out to Jennifer Maxwell, our Director of Investor
Relations here at Sterling or our partners at the Equity Group to schedule a follow-on call with us. Their information, their contact
information could be found at the bottom of our press release.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0">I&rsquo;d also like to thank you for joining us on our call today and we do look forward
to reporting our progress in the future. Thanks a lot.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Operator: Thank you. This concludes today&rsquo;s teleconference. You may disconnect
your lines at this time, and thank for your participation.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font-size: 10pt; margin: 0pt 0"></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0"><B>Disclaimer</B></P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">The information herein is based on sources we believe to be reliable
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<P STYLE="font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font-size: 10pt; text-align: right; margin: 0pt 0">13</P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
