Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 09, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | GOLDFIELD CORP | |
Entity Central Index Key | 42,316 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 25,451,354 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 7,645,491 | $ 9,822,179 |
Accounts receivable and accrued billings | 18,786,292 | 17,840,680 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 11,612,548 | 6,537,280 |
Income taxes receivable | 815,737 | 763,821 |
Current portion of notes receivable | 61,412 | 53,332 |
Residential properties under construction | 1,097,094 | 0 |
Prepaid expenses | 685,620 | 613,765 |
Deferred income taxes | 581,909 | 2,274,896 |
Other current assets | 278,516 | 262,630 |
Total current assets | 41,564,619 | 38,168,583 |
Property, buildings and equipment, at cost, net of accumulated depreciation of $29,970,793 in 2015 and $28,224,661 in 2014 | 37,039,527 | 37,002,843 |
Deferred charges and other assets | ||
Land and land development costs | 2,395,602 | 2,564,449 |
Cash surrender value of life insurance | 548,841 | 546,291 |
Restricted cash | 307,048 | 566,321 |
Notes receivable, less current portion | 15,703 | 50,096 |
Goodwill | 101,407 | 101,407 |
Intangibles, net of accumulated amortization of $124,759 in 2015 and $75,967 in 2014 | 889,041 | 937,833 |
Other assets | 37,874 | 32,113 |
Total deferred charges and other assets | 4,295,516 | 4,798,510 |
Total assets | 82,899,662 | 79,969,936 |
Current liabilities | ||
Accounts payable and accrued liabilities | 9,669,477 | 9,674,961 |
Contract loss accruals | 267,702 | 2,547,816 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 29,286 | 1,537,971 |
Current portion of notes payable | 8,133,482 | 3,685,859 |
Accrued remediation costs | 164,631 | 1,048,380 |
Total current liabilities | 18,264,578 | 18,494,987 |
Deferred income taxes | 7,868,045 | 7,988,539 |
Accrued remediation costs, less current portion | 64,260 | 15,000 |
Notes payable, less current portion | 23,665,518 | 22,657,973 |
Other accrued liabilities | 69,227 | 55,766 |
Total liabilities | 49,931,628 | 49,212,265 |
Commitments and contingencies (notes 3 and 5) | 0 | 0 |
Stockholders’ equity | ||
Preferred stock, $1 par value, 5,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $.10 par value, 40,000,000 shares authorized; 27,813,772 shares issued and 25,451,354 shares outstanding | 2,781,377 | 2,781,377 |
Additional paid-in capital | 18,481,683 | 18,481,683 |
Retained earnings | 13,013,161 | 10,802,798 |
Treasury stock, 2,362,418 shares, at cost | (1,308,187) | (1,308,187) |
Total stockholders’ equity | 32,968,034 | 30,757,671 |
Total liabilities and stockholders’ equity | $ 82,899,662 | $ 79,969,936 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Property, buildings and equipment, accumulated depreciation | $ 29,970,793 | $ 28,224,661 |
Finite-lived intangible assets, accumulated amortization | $ 124,759 | $ 75,967 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 27,813,772 | 27,813,772 |
Common stock, shares outstanding | 25,451,354 | 25,451,354 |
Treasury stock, shares | 2,362,418 | 2,362,418 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | ||||
Electrical construction | $ 26,813,125 | $ 22,111,299 | $ 90,509,971 | $ 66,520,732 |
Other | 249,236 | 548,052 | 553,102 | 3,399,954 |
Total revenue | 27,062,361 | 22,659,351 | 91,063,073 | 69,920,686 |
Costs and expenses | ||||
Electrical construction | 20,966,266 | 17,849,577 | 77,422,210 | 56,141,402 |
Other | 231,163 | 420,331 | 502,040 | 2,738,397 |
Selling, general and administrative | 1,072,870 | 997,214 | 3,552,001 | 3,249,188 |
Depreciation and amortization | 1,677,097 | 1,495,141 | 4,949,367 | 4,515,441 |
Gain on sale of property and equipment | (84,179) | (161,035) | (66,988) | (323,936) |
Total costs and expenses | 23,863,217 | 20,601,228 | 86,358,630 | 66,320,492 |
Total operating income | 3,199,144 | 2,058,123 | 4,704,443 | 3,600,194 |
Other income (expense), net | ||||
Interest income | 4,918 | 7,647 | 14,903 | 16,758 |
Interest expense | (175,651) | (163,632) | (509,478) | (516,127) |
Other income, net | 14,216 | 11,830 | 47,053 | 40,059 |
Total other expense, net | (156,517) | (144,155) | (447,522) | (459,310) |
Income before income taxes | 3,042,627 | 1,913,968 | 4,256,921 | 3,140,884 |
Income tax provision | 1,199,211 | 728,243 | 1,746,602 | 1,192,826 |
Income from continuing operations | 1,843,416 | 1,185,725 | 2,510,319 | 1,948,058 |
Loss from discontinued operations, net of tax benefit of ($39,395), $0, ($194,249) and ($405,478), respectively | (98,918) | 0 | (299,956) | (665,347) |
Net income | $ 1,744,498 | $ 1,185,725 | $ 2,210,363 | $ 1,282,711 |
Net income per share of common stock - continuing operations - basic and diluted (usd per share) | $ 0.07 | $ 0.05 | $ 0.10 | $ 0.08 |
Net income per share of common stock - discontinued operations - basic and diluted (usd per share) | 0 | 0 | (0.01) | (0.03) |
Net (loss) income per share of common stock — basic and diluted (usd per share) | $ 0.07 | $ 0.05 | $ 0.09 | $ 0.05 |
Weighted average shares outstanding - basic and diluted (shares) | 25,451,354 | 25,451,354 | 25,451,354 | 25,451,354 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Loss from discontinued operations, tax provision (benefit) | $ (39,395) | $ 0 | $ (194,249) | $ (405,478) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 2,210,363 | $ 1,282,711 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | ||
Depreciation and amortization | 4,949,367 | 4,515,441 |
Deferred income taxes | 1,572,493 | 243,982 |
Gain on sale of property and equipment | (66,988) | (323,936) |
Other expenses | (2,550) | (3,761) |
Changes in operating assets and liabilities, net of effects of acquisition | ||
Accounts receivable and accrued billings | (945,612) | 5,939,637 |
Real estate inventory | 0 | 395,062 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (5,075,268) | (3,870,551) |
Residential properties under construction | (1,097,094) | 1,616,916 |
Income taxes receivable | (51,916) | 289,539 |
Prepaid expenses and other assets | (93,502) | (639,900) |
Land and land development costs | 168,847 | (551,079) |
Restricted cash | 259,273 | (85,248) |
Accounts payable and accrued liabilities | (59,355) | (1,139,271) |
Contract loss accruals | (2,280,114) | (31,615) |
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,508,685) | (77,651) |
Accrued remediation costs | (834,489) | 583,742 |
Net cash (used in) provided by operating activities | (2,855,230) | 8,144,018 |
Cash flows from investing activities | ||
Proceeds from disposal of property and equipment | 814,293 | 1,701,819 |
Proceeds from notes receivable | 26,313 | 38,898 |
Purchases of property, buildings and equipment | (5,617,232) | (6,773,377) |
Net cash paid for acquisition | 0 | (5,743,665) |
Net cash used in investing activities | (4,776,626) | (10,776,325) |
Cash flows from financing activities | ||
Proceeds from notes payable | 24,500,000 | 3,500,000 |
Repayments on notes payable | (15,785,197) | (10,521,633) |
Installment loan repayments | (3,259,635) | (1,470,349) |
Net cash provided by (used in) financing activities | 5,455,168 | (8,491,982) |
Net decrease in cash and cash equivalents | (2,176,688) | (11,124,289) |
Cash and cash equivalents at beginning of period | 9,822,179 | 20,214,569 |
Cash and cash equivalents at end of period | 7,645,491 | 9,090,280 |
Supplemental disclosure of cash flow information | ||
Interest paid | 471,807 | 505,620 |
Income taxes paid, net | 31,776 | 253,857 |
Supplemental disclosure of non-cash investing and financing activities | ||
Liability for equipment acquired | $ 67,332 | $ 385,044 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Overview The Goldfield Corporation (the “Company”) was incorporated in Wyoming in 1906 and subsequently reincorporated in Delaware in 1968. The Company’s principal line of business is electrical construction. The principal market for the Company’s electrical construction operation is electric utilities throughout much of the United States. Basis of Financial Statement Presentation In the opinion of management, the accompanying unaudited interim consolidated financial statements include all adjustments necessary to present fairly the Company’s financial position, results of operations, and changes in cash flows for the interim periods reported. These adjustments are of a normal recurring nature. All financial statements presented herein are unaudited with the exception of the consolidated balance sheet as of December 31, 2014 , which was derived from the audited consolidated financial statements. The results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the year. These statements should be read in conjunction with the financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 . Allowance for Doubtful Accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on customer specific information and historical write-off experience. The Company reviews its allowance for doubtful accounts quarterly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Any increase in the allowance account has a corresponding negative effect on the results of operations. As of both September 30, 2015 and December 31, 2014 , upon its review, management determined it was not necessary to record an allowance for doubtful accounts due to the majority of accounts receivable being generated by electrical utility customers who the Company considers creditworthy based on timely collection history and other considerations. Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U. S. generally accepted accounting principles (“GAAP”). Actual results could differ from those estimates. Management considers the most significant estimates in preparing these financial statements to be the estimated cost to complete electrical construction contracts in progress, the adequacy of the accrued remediation costs and the realizability of deferred tax assets. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable and accrued billings, notes receivable, restricted cash collateral deposited with insurance carriers, cash surrender value of life insurance policies, accounts payable, notes payable, and other current liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Observable market based inputs or other observable inputs. Level 3 - Significant unobservable inputs that cannot be corroborated by observable market data. These values are generally determined using valuation models incorporating management’s estimates of market participant assumptions. Fair values of financial instruments are estimated through the use of public market prices, quotes from financial institutions, and other available information. Management considers the carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accrued billings, accounts payable and accrued liabilities, to approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of notes receivable is considered by management to approximate carrying value based on their interest rates and terms, maturities, collateral, and current status of the receivables. The fair value of the Company’s long-term notes payable are also estimated by management to approximate their carrying value since the interest rates prescribed by Branch Banking and Trust Company (the “Bank”) are variable market interest rates and are adjusted periodically. Restricted cash is considered by management to approximate fair value due to the nature of the asset held in a secured interest bearing bank account. The carrying value of cash surrender value of life insurance is also considered by management to approximate fair value as the carrying value is based on the current settlement value under the contract, as provided by the carrier. Restricted Cash The Company’s restricted cash includes cash deposited in a secured interest bearing bank account, as required by the Collateral Trust Agreement in connection with the Company’s workers’ compensation insurance policies, as described in note 8. Goodwill and Intangible Assets Intangible assets with finite useful lives are recorded at cost upon acquisition, and amortized over the term of the related contract or useful life, as applicable. Intangible assets held by the Company with finite useful lives include customer relationships and trademarks. All definite lived intangibles are amortized over their estimated useful lives. The Company reviews the values recorded for intangible assets and goodwill to assess recoverability from future operations annually or whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. As of December 31, 2014 , the Company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would require a test of recoverability on those assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. Segment Reporting The Company operates as a single reportable segment, electrical construction, under ASC Topic 280-10-50 Disclosures about Segments of an Enterprise and Related Information . Certain corporate costs are not allocated to a segment. Reclassifications Certain amounts previously reflected in the prior year statement of cash flows have been reclassified to conform to the Company’s 2015 presentation. The cash flows from operating activities include amounts under contract loss accruals which were previously reported within accounts payable and accrued liabilities. This reclassification had no effect on the previously reported total cash flows from operating activities. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles and is intended to improve and converge the financial reporting requirements for revenue from contracts with customers with International Financial Reporting Standards (“IFRS”) . The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 allows for both retrospective and prospective methods of adoption and is effective for periods beginning after December 15, 2016. The Company is currently evaluating the method of adoption and the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-14 which provides a one-year deferral of the revenue recognition standard’s effective date. Public business entities are required to apply the revenue recognition standard to annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Early application is permitted but not before the original effective date for public business entities (annual reporting periods beginning after December 15, 2016). The option to use either a retrospective or cumulative-effective transition method did not change. In August 2014, the FASB issued ASU 2014-15 requiring management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The standard also provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new guidance is effective for the annual period ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2014-15 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 that intends to simplify the presentation of debt issuance costs. The new standard will more closely align the presentation of debt issuance costs under U.S. generally accepted accounting principles with the presentation under comparable IFRS standards. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. ASU 2015-03 is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The cost of issuing debt will no longer be recorded as a separate asset, except when incurred before receipt of the funding from the associated debt liability. Under current U.S. generally accepted accounting principles, debt issuance costs are reported on the balance sheet as assets and amortized as interest expense. The costs will continue to be amortized to interest expense using the effective interest method. Subsequent to the issuance of ASU 2015-03 the Securities and Exchange Commission staff made an announcement regarding the presentation of debt issuance costs associated with line-of-credit arrangements, which was codified by the FASB in ASU 2015-15. This guidance, which clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03, is effective upon adoption of ASU 2015-03. The Company is currently evaluating the impact that the adoption of both ASU 2015-03 and 2015-15 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05 which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. generally accepted accounting principles for a customer ’ s accounting for service contracts. The standard will be effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years . The Company is currently evaluating the impact that the adoption of ASU 2015-05 will have on its consolidated financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the provision for income tax and the effective tax rates from continuing operations for the three and nine month periods ended September 30 as indicated: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Income tax provision $ 1,199,211 $ 728,243 $ 1,746,602 $ 1,192,826 Effective income tax rate 39.4 % 38.0 % 41.0 % 38.0 % The Company’s expected tax rate for the year ending December 31, 2015 , which was calculated based on the estimated annual operating results for the year, is 41.0% . The expected tax rate differs from the federal statutory rate of 34.0% mainly due to non-deductible expenses and state income taxes. The effective tax rates for the three and nine months ended September 30, 2015 were 39.4% and 41.0% , respectively. The effective tax rate for the three months ended September 30, 2015 differs from the expected tax rate due to an adjustment of the estimated annual operating results for the year. The effective tax rate for the nine months ended September 30, 2015 reflects the expected tax rate for the year. The effective tax rates for both the three and nine months ended September 30, 2014 were 38.0% and differ from the federal statutory rate of 34.0% primarily due to state income taxes. The current deferred tax assets decreased to $582,000 as of September 30, 2015 from $2.3 million as of December 31, 2014 primarily due to the decrease in accrued contract losses and to a lesser extent the decrease in accrued remediation costs. The non-current deferred tax liabilities were $7.9 million and $8.0 million as of September 30, 2015 and December 31, 2014 , respectively. This change is mainly due to a decrease between the book and tax net value of fixed assets. The carrying amounts of deferred tax assets are reduced by a valuation allowance if, based on the available evidence, it is more likely than not such assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the deferred tax assets are expected to be recovered or settled. In the assessment for a valuation allowance, appropriate consideration is given to positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, experience with loss carryforwards expiring unused, and tax planning alternatives. If the Company determines it will not be able to realize all or part of the deferred tax assets, a valuation allowance would be recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. Based on assumptions with respect to forecasts of future taxable income and tax planning, among others, the Company anticipates being able to generate sufficient taxable income to utilize the deferred tax assets. Therefore, the Company has not recorded a valuation allowance against deferred tax assets. The minimum amount of future taxable income required to be generated to fully realize the deferred tax assets as of September 30, 2015 is approximately $2.1 million . The Company has gross unrecognized tax benefits of $12,000 and $11,000 as of September 30, 2015 and December 31, 2014 , respectively. The Company believes that it is reasonably possible that the liability for unrecognized tax benefits related to certain state income tax matters may be settled within the next twelve months. The federal statute of limitation has expired for tax years prior to 2012 and relevant state statutes vary. The Company is currently not under any income tax audits or examinations and does not expect the assessment of any significant additional tax in excess of amounts provided. The Company accrues interest and penalties related to unrecognized tax benefits as interest expense and other general and administrative expenses, respectively, and not as a component of income taxes. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Commitments and Contingencies Related to Discontinued Operations Through certain of our subsidiaries and predecessor companies, the Company was previously engaged in mining activities and ended all such activities in December 2002. Effective September 15, 2014, the Company entered into an Administrative Order on Consent (“AOC”) with the United States Environmental Protection Agency (the “EPA”) with respect to a previously owned mining property, the Sierra Zinc Site located in Stevens County, Washington (the “Site”). The Company sold the Site over fifty years ago. The Site includes a tailings impoundment that was not previously reclaimed. Pursuant to the AOC, the Company agreed to undertake certain remediation actions at the Site, which work was completed by September 30, 2015. Based on the foregoing, the Company has reasonably estimated the amounts related to this response action in accordance with ASC Topic 450-20, Loss Contingencies, and established a contingency provision within discontinued operations. As of September 30, 2015 and December 31, 2014 , the balance of the estimated contingency provision accrued by the Company was $229,000 and $1.1 million , respectively, including an increase of $138,000 and $494,000 recognized in the three and the nine months ended September 30, 2015 , respectively. This increase resulted mainly from changes in the scope of the project as required by the EPA. The remaining balance of the accrued remediation costs as of September 30, 2015, mainly represents estimated future charges for EPA response costs and monitoring of the Site. It is reasonably possible the total actual costs to be incurred at the Site in future periods may vary from this estimate. The provision will be reviewed periodically based upon facts and circumstances available at the time. The costs provisioned for future expenditures related to this environmental obligation are not discounted to present value. As of September 30, 2015 and December 31, 2014 , respectively, discontinued operations had no liabilities other than the accrued remediation costs associated with the aforementioned EPA action. September 30, December 31, 2015 2014 Accrued remediation costs current $ 164,631 $ 1,048,380 Accrued remediation costs non-current 64,260 15,000 Total liabilities of discontinued operations $ 228,891 $ 1,063,380 The following table presents the operating results of the discontinued operations for the three and nine month periods ended September 30 , as indicated: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Provision for remediation costs $ (138,313 ) $ — $ (494,205 ) $ (1,070,825 ) Loss from discontinued operations before income taxes (138,313 ) — (494,205 ) (1,070,825 ) Income tax benefit (39,395 ) — (194,249 ) (405,478 ) Loss from discontinued operations, net of tax $ (98,918 ) $ — $ (299,956 ) $ (665,347 ) The Company’s effective tax benefit rates related to discontinued operations for the three and nine month periods ended September 30, 2015 was (28.5)% and (39.3)% , respectively. The effective tax benefit rate for the three months ended September 30, 2015 differs from the expected tax rate due to an adjustment of the estimated annual operating results for the year. The effective tax benefit rate for the nine months ended September 30, 2015 differs from the statutory rate of (34.0)% primarily due to non-deductible expenses and state income taxes. The Company’s effective tax benefit rates related to discontinued operations for the three and nine month periods ended September 30, 2014 was 0.0% and (37.9)% , respectively. The Company had no discontinued operations for the three months ended September 30, 2014 . The effective tax benefit rate differs from the statutory rate of (34.0)% primarily due to state income taxes. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable The following table presents the balances of our notes payable as of the dates indicated: Lending Institution Maturity Date September 30, 2015 December 31, 2014 Interest Rates September 30, 2015 December 31, 2014 Working Capital Loan Branch Banking and Trust Company June 16, 2017 $ 4,500,000 $ — 2.06 % 2.19 % $6.94 Million Equipment Loan Branch Banking and Trust Company February 22, 2016 — 2,701,343 — % 2.69 % $1.5 Million Equipment Loan Branch Banking and Trust Company October 17, 2016 — 727,000 — % 2.69 % $4.25 Million Equipment Loan Branch Banking and Trust Company September 19, 2016 — 2,094,000 — % 2.69 % $1.5 Million Equipment Loan (2013) Branch Banking and Trust Company April 22, 2017 — 1,000,000 — % 2.67 % $5.0 Million Equipment Loan Branch Banking and Trust Company April 22, 2018 — 3,703,704 — % 2.67 % $3.5 Million Acquisition Loan Branch Banking and Trust Company January 28, 2019 — 2,858,150 — % 2.19 % $10.0 Million Equipment Loan Branch Banking and Trust Company July 28, 2020 10,000,000 10,000,000 2.25 % 2.19 % $17.0 Million Equipment Loan Branch Banking and Trust Company March 6, 2020 15,299,000 — 2.06 % — % $2.0 Million Equipment Loan Branch Banking and Trust Company March 6, 2020 2,000,000 — 2.06 % — % $7.9 Million Installment Sale Contract Caterpillar Financial Services Corporation July 17, 2016 — 3,259,635 — % 3.45 % Total notes payable 31,799,000 26,343,832 Current portion of notes payable (8,133,482 ) (3,685,859 ) Notes payable, less current portion $ 23,665,518 $ 22,657,973 As of September 30, 2015 , the Company, and the Company’s wholly owned subsidiaries Southeast Power, Pineapple House of Brevard, Inc. (“Pineapple House”), Bayswater Development Corporation (“Bayswater”), Power Corporation of America (“PCA”) and C and C Power Line, Inc. (“C&C”), collectively (the “Debtors,”) were parties to a Master Loan Agreement, dated March 6, 2015 (the “2015 Master Loan Agreement”), with Branch Banking and Trust Company (the “Bank”). All loans with the Bank are guaranteed by the Debtors and include the grant of a continuing security interest in all now owned, hereafter acquired and wherever located personal property of the Debtors. As of September 30, 2015 , the Company had a loan agreement and a series of related ancillary agreements with the Bank providing for a revolving line of credit loan for a maximum principal amount of $15.0 million , to be used as a “ Working Capital Loan .” As of September 30, 2015 and December 31, 2014 , borrowings under the Working Capital Loan were $4.5 million and $0 , respectively. On October 15, 2015 the Company paid down $3.0 million of the Working Capital Loan. Such amount has been reflected under the “current portion of notes payable” in the accompanying consolidated balance sheets. The $10.0 Million Equipment Loan bears interest at a rate per annum equal to one month LIBOR (as defined in the ancillary loan documents) plus two percent 2.00% , which is adjusted monthly and subject to a maximum interest rate of 24.00% . The Working Capital Loan , the $17.0 Million Equipment Loan and the $2.0 Million Equipment Loan bear interest at a rate per annum equal to one month LIBOR (as defined in the documentation related to each loan) plus 1.80% , which will be adjusted monthly and subject to a maximum rate of 24.00% . The Company’s debt arrangements contain various financial and other covenants including, but not limited to: minimum tangible net worth, maximum debt to tangible net worth ratio and fixed charge coverage ratio. Other loan covenants prohibit, among other things, a change in legal form of the Company, and entering into a merger or consolidation. The loans also have cross-default provisions whereby any default under any loans of the Company (or its subsidiaries) with the Bank will constitute a default under all of the other loans of the Company (and its subsidiaries) with the Bank. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Performance Bonds In certain circumstances, the Company is required to provide performance bonds to secure its contractual commitments. Management is not aware of any performance bonds issued for the Company that have ever been called by a customer. As of September 30, 2015 , outstanding performance bonds issued on behalf of the Company’s electrical construction subsidiary amounted to approximately $42.2 million . Collective Bargaining Agreements C&C, one of the Company’s electrical construction subsidiaries, is party to collective bargaining agreements with unions representing workers performing field construction operations. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to the ones contained in the expiring agreements. The agreements require the subsidiary to pay specified wages, provide certain benefits to their respective union employees and contribute certain amounts to multi-employer pension plans and employee benefit trusts. The subsidiary’s multi-employer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on such subsidiary’s union employee payrolls, which cannot be determined for future periods because contributions depend on, among other things, the number of union employees that such subsidiary employs at any given time; the plans in which it may participate vary depending on the projects it has ongoing at any time; and the need for union resources in connection with those projects. If the subsidiary withdraws from, or otherwise terminates its participation in, one or more multi-employer pension plans, or if the plans were to otherwise become substantially underfunded, such subsidiary could be assessed liabilities for additional contributions related to the underfunding of these plans. The Company is not aware of any amounts of withdrawal liability that have been incurred as a result of a withdrawal by C&C from any multi-employer defined benefit pension plans. |
Income Per Share of Common Stoc
Income Per Share of Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Income Per Share of Common Stock | Income Per Share of Common Stock Basic income per common share is computed by dividing net income by the weighted average number of common stock shares outstanding during the period. Diluted income per share reflects the potential dilution that could occur if common stock equivalents, such as stock options outstanding, were exercised into common stock that subsequently shared in the earnings of the Company. As of September 30, 2015 and 2014 , the Company had no common stock equivalents. The computation of the weighted average number of common stock shares outstanding excludes 2,362,418 shares of Treasury Stock for each of the three and nine month periods ended September 30, 2015 and 2014 . |
Customer Concentration
Customer Concentration | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | Customer Concentration A significant portion of the Company’s electrical construction revenue has historically been derived from three or four utility customers each year. For the nine months ended September 30, 2015 and 2014 , the three largest customers accounted for 57% and 56% , respectively, of the Company’s total revenue. For the three months ended September 30, 2015 and 2014 , the three largest customers accounted for 77% and 55% , respectively, of the Company’s total revenue. The increase in concentration for the most recent quarter resulted from fluctuations in awards under existing MSAs. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2015 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash | Restricted Cash On October 25, 2010 , the Company, as grantor, Valley Forge Insurance Company (the “Beneficiary”) and Branch Banking and Trust Company (the “Trustee”) entered into a Collateral Trust Agreement (the “Agreement”) in connection with the Company’s workers’ compensation insurance policies issued by the Beneficiary (the “Policies”) beginning in 2009 . The Agreement was made to grant the Beneficiary a security interest in certain of the Company’s assets and to place those assets in a Trust Account to secure the Company’s obligations to the Beneficiary under the Policies. The deposits maintained under the Agreement are recorded as restricted cash, within the non-current assets section of our balance sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets Associated with the Acquisition of C&C | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets Associated with the Acquisition of C&C | Goodwill and Other Intangible Assets Associated with the Acquisition of C&C On January 3, 2014 , PCA completed its acquisition of all the issued and outstanding shares of stock of C&C. The purchase price was $7.3 million in cash, subject to certain customary post-closing adjustments. As of December 31, 2014 all such adjustments were recognized. In connection with the acquisition of C&C, the Company acquired intangible assets with definite useful lives primarily consisting of trademarks and names, customer relationships and non-competition agreements and are amortized over periods from five to twenty years . The aggregate cash consideration paid, net of cash acquired of $1.4 million , was $5.8 million , of which $101,000 was allocated to goodwill, $1.0 million to acquired other intangible assets, $3.3 million to property and equipment, $2.6 million to net current assets and $1.3 million to net liabilities assumed. The following table presents the gross and net balances of our goodwill and intangible assets as of the dates indicated: September 30, 2015 December 31, 2014 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived and non-amortizable acquired intangible assets Goodwill Indefinite $ 101,407 $ — $ 101,407 $ 101,407 $ — $ 101,407 Definite-lived and amortizable acquired intangible assets Trademarks/Names 15 $ 640,000 $ (74,667 ) $ 565,333 $ 640,000 $ (42,667 ) $ 597,333 Customer relationships 20 350,000 (30,625 ) 319,375 350,000 (17,500 ) 332,500 Non-competition agreement 5 10,000 (5,667 ) 4,333 10,000 (2,000 ) 8,000 Other 1 13,800 (13,800 ) — 13,800 (13,800 ) — Total intangible assets, net $ 1,013,800 $ (124,759 ) $ 889,041 $ 1,013,800 $ (75,967 ) $ 937,833 |
Organization and Summary of S16
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Financial Statement Presentation | Overview The Goldfield Corporation (the “Company”) was incorporated in Wyoming in 1906 and subsequently reincorporated in Delaware in 1968. The Company’s principal line of business is electrical construction. The principal market for the Company’s electrical construction operation is electric utilities throughout much of the United States. Basis of Financial Statement Presentation In the opinion of management, the accompanying unaudited interim consolidated financial statements include all adjustments necessary to present fairly the Company’s financial position, results of operations, and changes in cash flows for the interim periods reported. These adjustments are of a normal recurring nature. All financial statements presented herein are unaudited with the exception of the consolidated balance sheet as of December 31, 2014 , which was derived from the audited consolidated financial statements. The results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the year. These statements should be read in conjunction with the financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 . |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on customer specific information and historical write-off experience. The Company reviews its allowance for doubtful accounts quarterly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Any increase in the allowance account has a corresponding negative effect on the results of operations. As of both September 30, 2015 and December 31, 2014 , upon its review, management determined it was not necessary to record an allowance for doubtful accounts due to the majority of accounts receivable being generated by electrical utility customers who the Company considers creditworthy based on timely collection history and other considerations. |
Use of Estimates | Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U. S. generally accepted accounting principles (“GAAP”). Actual results could differ from those estimates. Management considers the most significant estimates in preparing these financial statements to be the estimated cost to complete electrical construction contracts in progress, the adequacy of the accrued remediation costs and the realizability of deferred tax assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable and accrued billings, notes receivable, restricted cash collateral deposited with insurance carriers, cash surrender value of life insurance policies, accounts payable, notes payable, and other current liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Observable market based inputs or other observable inputs. Level 3 - Significant unobservable inputs that cannot be corroborated by observable market data. These values are generally determined using valuation models incorporating management’s estimates of market participant assumptions. Fair values of financial instruments are estimated through the use of public market prices, quotes from financial institutions, and other available information. Management considers the carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accrued billings, accounts payable and accrued liabilities, to approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of notes receivable is considered by management to approximate carrying value based on their interest rates and terms, maturities, collateral, and current status of the receivables. The fair value of the Company’s long-term notes payable are also estimated by management to approximate their carrying value since the interest rates prescribed by Branch Banking and Trust Company (the “Bank”) are variable market interest rates and are adjusted periodically. Restricted cash is considered by management to approximate fair value due to the nature of the asset held in a secured interest bearing bank account. The carrying value of cash surrender value of life insurance is also considered by management to approximate fair value as the carrying value is based on the current settlement value under the contract, as provided by the carrier. |
Restricted Cash | Restricted Cash The Company’s restricted cash includes cash deposited in a secured interest bearing bank account, as required by the Collateral Trust Agreement in connection with the Company’s workers’ compensation insurance policies, as described in note 8. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets with finite useful lives are recorded at cost upon acquisition, and amortized over the term of the related contract or useful life, as applicable. Intangible assets held by the Company with finite useful lives include customer relationships and trademarks. All definite lived intangibles are amortized over their estimated useful lives. The Company reviews the values recorded for intangible assets and goodwill to assess recoverability from future operations annually or whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. As of December 31, 2014 , the Company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would require a test of recoverability on those assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. |
Segment Reporting | Segment Reporting The Company operates as a single reportable segment, electrical construction, under ASC Topic 280-10-50 Disclosures about Segments of an Enterprise and Related Information . Certain corporate costs are not allocated to a segment. |
Reclassifications | Reclassifications Certain amounts previously reflected in the prior year statement of cash flows have been reclassified to conform to the Company’s 2015 presentation. The cash flows from operating activities include amounts under contract loss accruals which were previously reported within accounts payable and accrued liabilities. This reclassification had no effect on the previously reported total cash flows from operating activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles and is intended to improve and converge the financial reporting requirements for revenue from contracts with customers with International Financial Reporting Standards (“IFRS”) . The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 allows for both retrospective and prospective methods of adoption and is effective for periods beginning after December 15, 2016. The Company is currently evaluating the method of adoption and the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-14 which provides a one-year deferral of the revenue recognition standard’s effective date. Public business entities are required to apply the revenue recognition standard to annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Early application is permitted but not before the original effective date for public business entities (annual reporting periods beginning after December 15, 2016). The option to use either a retrospective or cumulative-effective transition method did not change. In August 2014, the FASB issued ASU 2014-15 requiring management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The standard also provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new guidance is effective for the annual period ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2014-15 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 that intends to simplify the presentation of debt issuance costs. The new standard will more closely align the presentation of debt issuance costs under U.S. generally accepted accounting principles with the presentation under comparable IFRS standards. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. ASU 2015-03 is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The cost of issuing debt will no longer be recorded as a separate asset, except when incurred before receipt of the funding from the associated debt liability. Under current U.S. generally accepted accounting principles, debt issuance costs are reported on the balance sheet as assets and amortized as interest expense. The costs will continue to be amortized to interest expense using the effective interest method. Subsequent to the issuance of ASU 2015-03 the Securities and Exchange Commission staff made an announcement regarding the presentation of debt issuance costs associated with line-of-credit arrangements, which was codified by the FASB in ASU 2015-15. This guidance, which clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03, is effective upon adoption of ASU 2015-03. The Company is currently evaluating the impact that the adoption of both ASU 2015-03 and 2015-15 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05 which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. generally accepted accounting principles for a customer ’ s accounting for service contracts. The standard will be effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years . The Company is currently evaluating the impact that the adoption of ASU 2015-05 will have on its consolidated financial statements. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision from continuing operations | The following table presents the provision for income tax and the effective tax rates from continuing operations for the three and nine month periods ended September 30 as indicated: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Income tax provision $ 1,199,211 $ 728,243 $ 1,746,602 $ 1,192,826 Effective income tax rate 39.4 % 38.0 % 41.0 % 38.0 % |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Disclosure | As of September 30, 2015 and December 31, 2014 , respectively, discontinued operations had no liabilities other than the accrued remediation costs associated with the aforementioned EPA action. September 30, December 31, 2015 2014 Accrued remediation costs current $ 164,631 $ 1,048,380 Accrued remediation costs non-current 64,260 15,000 Total liabilities of discontinued operations $ 228,891 $ 1,063,380 The following table presents the operating results of the discontinued operations for the three and nine month periods ended September 30 , as indicated: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Provision for remediation costs $ (138,313 ) $ — $ (494,205 ) $ (1,070,825 ) Loss from discontinued operations before income taxes (138,313 ) — (494,205 ) (1,070,825 ) Income tax benefit (39,395 ) — (194,249 ) (405,478 ) Loss from discontinued operations, net of tax $ (98,918 ) $ — $ (299,956 ) $ (665,347 ) |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The following table presents the balances of our notes payable as of the dates indicated: Lending Institution Maturity Date September 30, 2015 December 31, 2014 Interest Rates September 30, 2015 December 31, 2014 Working Capital Loan Branch Banking and Trust Company June 16, 2017 $ 4,500,000 $ — 2.06 % 2.19 % $6.94 Million Equipment Loan Branch Banking and Trust Company February 22, 2016 — 2,701,343 — % 2.69 % $1.5 Million Equipment Loan Branch Banking and Trust Company October 17, 2016 — 727,000 — % 2.69 % $4.25 Million Equipment Loan Branch Banking and Trust Company September 19, 2016 — 2,094,000 — % 2.69 % $1.5 Million Equipment Loan (2013) Branch Banking and Trust Company April 22, 2017 — 1,000,000 — % 2.67 % $5.0 Million Equipment Loan Branch Banking and Trust Company April 22, 2018 — 3,703,704 — % 2.67 % $3.5 Million Acquisition Loan Branch Banking and Trust Company January 28, 2019 — 2,858,150 — % 2.19 % $10.0 Million Equipment Loan Branch Banking and Trust Company July 28, 2020 10,000,000 10,000,000 2.25 % 2.19 % $17.0 Million Equipment Loan Branch Banking and Trust Company March 6, 2020 15,299,000 — 2.06 % — % $2.0 Million Equipment Loan Branch Banking and Trust Company March 6, 2020 2,000,000 — 2.06 % — % $7.9 Million Installment Sale Contract Caterpillar Financial Services Corporation July 17, 2016 — 3,259,635 — % 3.45 % Total notes payable 31,799,000 26,343,832 Current portion of notes payable (8,133,482 ) (3,685,859 ) Notes payable, less current portion $ 23,665,518 $ 22,657,973 |
Goodwill and Other Intangible20
Goodwill and Other Intangible Assets Associated with the Acquisition of C&C (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents the gross and net balances of our goodwill and intangible assets as of the dates indicated: September 30, 2015 December 31, 2014 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived and non-amortizable acquired intangible assets Goodwill Indefinite $ 101,407 $ — $ 101,407 $ 101,407 $ — $ 101,407 Definite-lived and amortizable acquired intangible assets Trademarks/Names 15 $ 640,000 $ (74,667 ) $ 565,333 $ 640,000 $ (42,667 ) $ 597,333 Customer relationships 20 350,000 (30,625 ) 319,375 350,000 (17,500 ) 332,500 Non-competition agreement 5 10,000 (5,667 ) 4,333 10,000 (2,000 ) 8,000 Other 1 13,800 (13,800 ) — 13,800 (13,800 ) — Total intangible assets, net $ 1,013,800 $ (124,759 ) $ 889,041 $ 1,013,800 $ (75,967 ) $ 937,833 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||||||
Income tax provision | $ 1,199,211 | $ 728,243 | $ 1,746,602 | $ 1,192,826 | ||
Effective income tax rate | 39.40% | 38.00% | 41.00% | 38.00% | ||
Federal statutory rate | 34.00% | 34.00% | 34.00% | 34.00% | ||
Current deferred tax asset | $ 582,000 | $ 582,000 | $ 2,300,000 | |||
Deferred income taxes | 7,868,045 | 7,868,045 | 7,988,539 | |||
Minimum amount of future taxable income required to utilized deferred tax asset | 2,100,000 | 2,100,000 | ||||
Unrecognized tax benefits | $ 12,000 | $ 12,000 | $ 11,000 | |||
Scenario, Forecast [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Expected income tax rate | 41.00% |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |||||
Accrued remediation costs current | $ 164,631 | $ 164,631 | $ 1,048,380 | ||
Total liabilities of discontinued operations | 228,891 | 228,891 | 1,063,380 | ||
Accrued remediation costs non-current | 64,260 | 64,260 | $ 15,000 | ||
Provision for remediation costs | (138,313) | $ 0 | (494,205) | $ (1,070,825) | |
Loss from discontinued operations before income taxes | (138,313) | 0 | (494,205) | (1,070,825) | |
Income tax benefit | (39,395) | 0 | (194,249) | (405,478) | |
Loss from discontinued operations, net of tax | $ (98,918) | $ 0 | $ (299,956) | $ (665,347) | |
Effective tax rate related to discontinued operations | (28.50%) | 0.00% | (39.30%) | (37.90%) | |
Federal statutory rate | (34.00%) | (34.00%) | (34.00%) | (34.00%) |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Balances of the Company's notes payable | ||
Total notes payable | $ 31,799,000 | $ 26,343,832 |
Current portion of notes payable | (8,133,482) | (3,685,859) |
Notes payable, less current portion | $ 23,665,518 | 22,657,973 |
Working Capital Loan [Member] | ||
Balances of the Company's notes payable | ||
Maturity Date | Jun. 16, 2017 | |
Note payable balance | $ 4,500,000 | $ 0 |
Interest Rate | 2.06% | 2.19% |
$6.94 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 6,940,000 | |
Maturity Date | Feb. 22, 2016 | |
Note payable balance | $ 0 | $ 2,701,343 |
Interest Rate | 0.00% | 2.69% |
$1.50 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 1,500,000 | |
Maturity Date | Oct. 17, 2016 | |
Note payable balance | $ 0 | $ 727,000 |
Interest Rate | 0.00% | 2.69% |
$4.25 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 4,250,000 | |
Maturity Date | Sep. 19, 2016 | |
Note payable balance | $ 0 | $ 2,094,000 |
Interest Rate | 0.00% | 2.69% |
$1.50 Million Equipment Loan (2013) [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 1,500,000 | |
Maturity Date | Apr. 22, 2017 | |
Note payable balance | $ 0 | $ 1,000,000 |
Interest Rate | 0.00% | 2.67% |
$5.0 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 5,000,000 | |
Maturity Date | Apr. 22, 2018 | |
Note payable balance | $ 0 | $ 3,703,704 |
Interest Rate | 0.00% | 2.67% |
$3.5 Million Acquisition Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 3,500,000 | |
Maturity Date | Jan. 28, 2019 | |
Note payable balance | $ 0 | $ 2,858,150 |
Interest Rate | 0.00% | 2.19% |
$10.0 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 10,000,000 | |
Maturity Date | Jul. 28, 2020 | |
Note payable balance | $ 10,000,000 | $ 10,000,000 |
Interest Rate | 2.25% | 2.19% |
$17.0 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 17,000,000 | |
Maturity Date | Mar. 6, 2020 | |
Note payable balance | $ 15,299,000 | $ 0 |
Interest Rate | 2.06% | 0.00% |
$2.0 Million Equipment Loan [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 2,000,000 | |
Maturity Date | Mar. 6, 2020 | |
Note payable balance | $ 2,000,000 | $ 0 |
Interest Rate | 2.06% | 0.00% |
$7.90 Million Installment Sale Contract [Member] | ||
Balances of the Company's notes payable | ||
Loan agreement face amount | $ 7,902,877 | |
Maturity Date | Jul. 17, 2016 | |
Note payable balance | $ 0 | $ 3,259,635 |
Interest Rate | 0.00% | 3.45% |
Notes Payable - Textual (Detail
Notes Payable - Textual (Details) - USD ($) | Oct. 15, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Working Capital Loan [Member] | |||
Notes Payable (Textual) [Abstract] | |||
Revolving line of credit loan | $ 15,000,000 | ||
Borrowings outstanding | 4,500,000 | $ 0 | |
$10.0 Million Equipment Loan [Member] | |||
Notes Payable (Textual) [Abstract] | |||
Borrowings outstanding | $ 10,000,000 | $ 10,000,000 | |
Debt instrument, stated rate range, maximum | 24.00% | ||
$10.0 Million Equipment Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Notes Payable (Textual) [Abstract] | |||
Basis spread added to monthly LIBOR | 2.00% | ||
Working Capital, $17.0 and $2.0 Million Equipment Loans [Member] | |||
Notes Payable (Textual) [Abstract] | |||
Debt instrument, stated rate range, maximum | 24.00% | ||
Working Capital, $17.0 and $2.0 Million Equipment Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Notes Payable (Textual) [Abstract] | |||
Basis spread added to monthly LIBOR | 1.80% | ||
Subsequent Event [Member] | Working Capital Loan [Member] | |||
Notes Payable (Textual) [Abstract] | |||
Repayments of debt | $ 3,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Performance Bonds (Details) $ in Millions | Sep. 30, 2015USD ($) |
Performance Bond [Member] | |
Guarantor Obligations [Line Items] | |
Outstanding performance bonds | $ 42.2 |
Income Per Share of Common St26
Income Per Share of Common Stock (Details) - shares | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Earnings Per Share [Abstract] | |||
Shares of treasury stock excluded from weighted average number of common stock shares outstanding | 2,362,418 | 2,362,418 | 2,362,418 |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 77.00% | 55.00% | 57.00% | 56.00% |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets Associated with the Acquisition of C&C (Details) - USD ($) | Jan. 03, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 101,407 | $ 101,407 | |
Gross Carrying Amount | 1,013,800 | 1,013,800 | |
Accumulated Amortization | (124,759) | (75,967) | |
Net Carrying Amount | $ 889,041 | 937,833 | |
Trademarks/Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 15 years | ||
Gross Carrying Amount | $ 640,000 | 640,000 | |
Accumulated Amortization | (74,667) | (42,667) | |
Net Carrying Amount | $ 565,333 | 597,333 | |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 20 years | ||
Gross Carrying Amount | $ 350,000 | 350,000 | |
Accumulated Amortization | (30,625) | (17,500) | |
Net Carrying Amount | $ 319,375 | 332,500 | |
Non-compete agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 5 years | ||
Gross Carrying Amount | $ 10,000 | 10,000 | |
Accumulated Amortization | (5,667) | (2,000) | |
Net Carrying Amount | $ 4,333 | 8,000 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 1 year | ||
Gross Carrying Amount | $ 13,800 | 13,800 | |
Accumulated Amortization | (13,800) | (13,800) | |
Net Carrying Amount | $ 0 | $ 0 | |
C and C Power Line, Inc. [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition purchase price | $ 7,300,000 | ||
Cash acquired | 1,400,000 | ||
Purchase price, net of cash acquired | 5,800,000 | ||
Goodwill | 101,000 | ||
Intangible assets | 1,000,000 | ||
Other intangible assets | 3,300,000 | ||
Net current assets | 2,600,000 | ||
Net liabilities assumed | $ 1,300,000 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 20 years |