Sterling Announces Amendment to Road and Highway Builders, LLC Operating Agreement

Core Viewpoint - Sterling Infrastructure, Inc. has amended its operating agreement with Road and Highway Builders, LLC, changing the reporting of RHB's results under GAAP without affecting its contribution to Sterling's consolidated net income [1][4]. Group 1: Ownership and Agreement Changes - Sterling has held a 50% ownership interest in RHB since 2012, with Rich Buenting owning the other 50% [2]. - The amendment addresses the ownership structure in the event of Mr. Buenting's death or disability, providing four alternatives for the future of RHB [2]. Group 2: Financial Reporting Changes - Prior to the amendment, RHB's assets and liabilities were fully consolidated into Sterling's financial statements, with Mr. Buenting's interest reported as a liability [3]. - Following the amendment, Sterling will no longer consolidate RHB's results, and its interest will be presented on one line in the consolidated balance sheet [4]. - Starting in 2025, 50% of RHB's operating income will be reported on one line in Sterling's consolidated statements, and RHB's revenue will not be included in Sterling's consolidated revenue [5]. Group 3: Financial Expectations - RHB's revenue is projected to be between $230 million and$240 million in 2024, while its standalone backlog is estimated to be between $425 million and$475 million at the end of the year [5].