Note 5 - Variable Interest Entities

3 Months Ended

Mar. 31, 2017

5.	Variable Interest Entities

The Company owns a

50%

interest in Myers, of which it is the primary beneficiary, and has consolidated Myers into the Company’s financial statements. Because the Company exercises primary control over activities of the partnership and it is exposed to the majority of potential losses of the partnership, the Company has consolidated Myers within the Company’s financial statements since

August

2011,

the date of acquisition. Refer to Note

of the Notes to Consolidated Financial Statements included in the

2016

Form

-K for additional information on the acquisition of this limited partnership.

The condensed financial information of Myers, which is reflected in the Company’s condensed consolidated balance sheets and statements of operations, is as follows (amounts in thousands):

	March 31, 2017		December 31, 2016
Assets:
Current assets:
Cash and cash equivalents	$	1,447	$	9,655
Contracts receivable, including retainage		16,279		15,046
Other current assets		10,925		10,208
Total current assets		28,651		34,909
Property and equipment, net		9,450		9,824
Goodwill		1,501		1,501
Total assets	$	39,602	$	46,234
Liabilities:
Current liabilities:
Accounts payable	$	18,906	$	21,274
Other current liabilities		9,104		8,782
Total current liabilities		28,010		30,056
Long-term liabilities:
Other long-term liabilities		399		5,373
Total liabilities	$	28,409	$	35,429

	Three Months Ended March 31,
	2017		2016

Revenues	$	23,285	$	26,943
Operating income		394		194
Net income attributable to Sterling common stockholders		195		94