Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | GOLDFIELD CORP | |
Entity Central Index Key | 0000042316 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-7525 | |
Entity Tax Identification Number | 880031580 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Address, Address Line One | 1684 W. Hibiscus Boulevard | |
Entity Address, City or Town | Melbourne | |
Entity Address, State or Province | Florida | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 32901 | |
City Area Code | 321 | |
Local Phone Number | 724-1700 | |
Entity Common Stock, Shares Outstanding | 24,522,534 | |
NYSE American | ||
Document Information [Line Items] | ||
Trading Symbol | GV | |
Entity Listing, Description | Common Stock |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 15,473,938 | $ 11,376,373 |
Accounts receivable and accrued billings | 22,479,886 | 22,236,071 |
Real estate inventory | 1,026,968 | 0 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 15,270,062 | 12,030,000 |
Income taxes receivable | 1,454,638 | 1,220,527 |
Residential properties under construction | 573,236 | 8,244,995 |
Prepaid expenses | 1,487,549 | 634,069 |
Other current assets | 634,961 | 1,835,743 |
Total current assets | 58,401,238 | 57,577,778 |
Property, buildings and equipment, at cost, net of accumulated depreciation of $47,399,762 in 2019 and $43,060,083 in 2018 | 55,683,924 | 48,927,055 |
Deferred charges and other assets | ||
Land and land development costs | 4,617,922 | 4,680,080 |
Cash surrender value of life insurance | 545,285 | 547,009 |
Restricted cash | 25,980 | 25,980 |
Goodwill | 101,407 | 101,407 |
Intangibles, net of accumulated amortization of $354,718 in 2019 and $324,634 in 2018 | 659,082 | 689,166 |
Right of use assets | 5,934,791 | 0 |
Other assets | 413,222 | 0 |
Total deferred charges and other assets | 12,297,689 | 6,043,642 |
Total assets | 126,382,851 | 112,548,475 |
Current liabilities | ||
Accounts payable and accrued liabilities | 13,503,637 | 15,999,157 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,236,497 | 1,165,002 |
Current portion of lease liability | 2,659,377 | 0 |
Current portion of other long-term debt | 117,226 | 113,855 |
Current portion of notes payable, net | 7,458,207 | 7,161,890 |
Accrued remediation costs | 69,686 | 60,101 |
Total current liabilities | 25,044,630 | 24,500,005 |
Deferred income taxes | 7,199,743 | 6,061,042 |
Accrued remediation costs, less current portion | 411,856 | 436,982 |
Other long-term debt, less current portion, net | 124,276 | 183,744 |
Notes payable, less current portion, net | 28,303,522 | 21,731,024 |
Other accrued liabilities | 3,255,934 | 30,246 |
Total liabilities | 64,339,961 | 52,943,043 |
Commitments and contingencies (notes 4 and 6) | 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 24,522,534 shares outstanding in 2019 and 24,590,243 shares outstanding in 2018 | 2,781,377 | 2,781,377 |
Additional paid-in capital | 18,481,683 | 18,481,683 |
Retained earnings | 44,219,934 | 41,621,191 |
Treasury stock, 3,291,238 shares in 2019 and 3,223,529 shares in 2018, at cost | (3,440,104) | (3,278,819) |
Total stockholders’ equity | 62,042,890 | 59,605,432 |
Total liabilities and stockholders’ equity | $ 126,382,851 | $ 112,548,475 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Property, buildings and equipment, accumulated depreciation | $ 47,399,762 | $ 43,060,083 |
Finite-lived intangible assets, accumulated amortization | $ 354,718 | $ 324,634 |
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) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 27,813,772 | 27,813,772 |
Common stock, shares outstanding | 24,522,534 | 24,590,243 |
Treasury stock, shares | 3,291,238 | 3,223,529 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | ||||
Total revenue | $ 44,380,219 | $ 37,507,244 | $ 91,860,475 | $ 71,945,940 |
Costs and expenses | ||||
Selling, general and administrative | 2,342,561 | 2,112,110 | 4,870,883 | 4,228,523 |
Depreciation and amortization | 2,738,483 | 2,002,233 | 5,319,562 | 3,889,742 |
Gain on sale of property and equipment | (6,216) | (51,826) | (32,067) | (65,217) |
Total costs and expenses | 42,730,648 | 34,142,882 | 87,295,864 | 65,130,030 |
Total operating income | 1,649,571 | 3,364,362 | 4,564,611 | 6,815,910 |
Other income (expense), net | ||||
Interest income | 31,218 | 10,053 | 42,770 | 16,841 |
Interest expense, net of amount capitalized | (411,562) | (207,684) | (763,553) | (397,300) |
Other income, net | 32,252 | 22,274 | 64,536 | 37,367 |
Total other expense, net | (348,092) | (175,357) | (656,247) | (343,092) |
Income before income taxes | 1,301,479 | 3,189,005 | 3,908,364 | 6,472,818 |
Income tax provision | 482,357 | 1,037,512 | 1,309,621 | 1,915,651 |
Net income | $ 819,122 | $ 2,151,493 | $ 2,598,743 | $ 4,557,167 |
Net income per share of common stock — basic and diluted | $ 0.03 | $ 0.08 | $ 0.11 | $ 0.18 |
Weighted average shares outstanding - basic and diluted (shares) | 24,522,534 | 25,451,354 | 24,524,339 | 25,451,354 |
Electrical construction | ||||
Revenue | ||||
Total revenue | $ 39,204,368 | $ 36,195,767 | $ 80,591,687 | $ 70,327,686 |
Costs and expenses | ||||
Cost of goods and service sold | 33,516,400 | 29,287,017 | 68,808,411 | 56,069,877 |
Real estate development | ||||
Revenue | ||||
Total revenue | 5,175,851 | 1,311,477 | 11,268,788 | 1,618,254 |
Costs and expenses | ||||
Cost of goods and service sold | $ 4,139,420 | $ 793,348 | $ 8,329,075 | $ 1,007,105 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 2,598,743 | $ 4,557,167 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 5,319,562 | 3,889,742 |
Amortization of debt issuance costs | 14,698 | 27,578 |
Right of use asset amortization | 1,874,117 | 0 |
Deferred income taxes | 1,138,701 | 252,716 |
Gain on sale of property and equipment | (32,067) | (65,217) |
Other losses | 1,724 | 1,656 |
Changes in operating assets and liabilities | ||
Accounts receivable and accrued billings | (243,815) | (2,851,504) |
Costs and estimated earnings in excess of billings on uncompleted contracts | (3,240,062) | (4,337,328) |
Residential properties under construction | 7,671,759 | (2,406,320) |
Real estate inventory | (1,026,968) | (983,700) |
Income taxes receivable | (234,111) | 619,552 |
Prepaid expenses and other assets | (65,920) | 1,532,110 |
Land and land development costs | 62,158 | (670,034) |
Income taxes payable | 0 | 276,201 |
Accounts payable and accrued liabilities | (427,817) | 1,942,156 |
Operating lease liabilities | (1,923,843) | 0 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 71,495 | 74,540 |
Accrued remediation costs | (15,541) | (19,389) |
Net cash provided by operating activities | 11,542,813 | 1,839,926 |
Cash flows from investing activities | ||
Proceeds from disposal of property and equipment | 253,789 | 147,200 |
Purchases of property, buildings and equipment | (14,335,772) | (7,577,091) |
Net cash used in investing activities | (14,081,983) | (7,429,891) |
Cash flows from financing activities | ||
Purchases of treasury stock | (161,285) | 0 |
Proceeds from notes payable | 15,500,000 | 2,816,961 |
Repayments on notes payable | (8,588,000) | (5,810,000) |
Other long-term debt repayments | (56,097) | (52,917) |
Debt issuance costs | (57,883) | (23,313) |
Net cash provided by (used in) financing activities | 6,636,735 | (3,069,269) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 4,097,565 | (8,659,234) |
Cash, cash equivalents and restricted cash at beginning of the period | 11,402,353 | 18,631,784 |
Cash, cash equivalents and restricted cash at end of the period | 15,499,918 | 9,972,550 |
Supplemental disclosure of cash flow information | ||
Interest paid, net of amounts capitalized | 735,292 | 367,870 |
Income taxes paid, net | 405,000 | 767,182 |
Supplemental disclosure of non-cash investing | ||
Liability for equipment acquired | 224,166 | 203,149 |
Equipment funded by other long-term debt | 241,502 | 352,083 |
Right-of-use asset obtained in exchange for operating lease obligations | $ 3,490,319 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common stock | Additional paid-in capital | Retained earnings | Treasury stock |
Balance at Dec. 31, 2017 | $ 56,548,313 | $ 2,781,377 | $ 18,481,683 | $ 36,593,440 | $ (1,308,187) |
Balance (shares) at Dec. 31, 2017 | 27,813,772 | ||||
Net income | 2,405,674 | 2,405,674 | |||
Balance at Mar. 31, 2018 | 58,953,987 | $ 2,781,377 | 18,481,683 | 38,999,114 | (1,308,187) |
Balance (shares) at Mar. 31, 2018 | 27,813,772 | ||||
Balance at Dec. 31, 2017 | 56,548,313 | $ 2,781,377 | 18,481,683 | 36,593,440 | (1,308,187) |
Balance (shares) at Dec. 31, 2017 | 27,813,772 | ||||
Net income | 4,557,167 | ||||
Balance at Jun. 30, 2018 | 61,105,480 | $ 2,781,377 | 18,481,683 | 41,150,607 | (1,308,187) |
Balance (shares) at Jun. 30, 2018 | 27,813,772 | ||||
Balance at Mar. 31, 2018 | 58,953,987 | $ 2,781,377 | 18,481,683 | 38,999,114 | (1,308,187) |
Balance (shares) at Mar. 31, 2018 | 27,813,772 | ||||
Net income | 2,151,493 | 2,151,493 | |||
Balance at Jun. 30, 2018 | 61,105,480 | $ 2,781,377 | 18,481,683 | 41,150,607 | (1,308,187) |
Balance (shares) at Jun. 30, 2018 | 27,813,772 | ||||
Balance at Dec. 31, 2018 | $ 59,605,432 | $ 2,781,377 | 18,481,683 | 41,621,191 | (3,278,819) |
Balance (shares) at Dec. 31, 2018 | 24,590,243 | 27,813,772 | |||
Repurchase of stock | $ (161,285) | (161,285) | |||
Net income | 1,779,621 | 1,779,621 | |||
Balance at Mar. 31, 2019 | 61,223,768 | $ 2,781,377 | 18,481,683 | 43,400,812 | (3,440,104) |
Balance (shares) at Mar. 31, 2019 | 27,813,772 | ||||
Balance at Dec. 31, 2018 | $ 59,605,432 | $ 2,781,377 | 18,481,683 | 41,621,191 | (3,278,819) |
Balance (shares) at Dec. 31, 2018 | 24,590,243 | 27,813,772 | |||
Net income | $ 2,598,743 | ||||
Balance at Jun. 30, 2019 | $ 62,042,890 | $ 2,781,377 | 18,481,683 | 44,219,934 | (3,440,104) |
Balance (shares) at Jun. 30, 2019 | 24,522,534 | 27,813,772 | |||
Balance at Mar. 31, 2019 | $ 61,223,768 | $ 2,781,377 | 18,481,683 | 43,400,812 | (3,440,104) |
Balance (shares) at Mar. 31, 2019 | 27,813,772 | ||||
Net income | 819,122 | 819,122 | |||
Balance at Jun. 30, 2019 | $ 62,042,890 | $ 2,781,377 | $ 18,481,683 | $ 44,219,934 | $ (3,440,104) |
Balance (shares) at Jun. 30, 2019 | 24,522,534 | 27,813,772 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1 – 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 the construction of electrical infrastructure for the utility industry and industrial customers and to a lesser extent real estate development. The principal market for the Company’s electrical construction operation is primarily in the Southeast, mid-Atlantic and Texas-Southwest regions of the United States. The principal market for the Company’s real estate development operation is along the east coast of Central Florida. 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, 2018, 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 consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. 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 reasonable means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2019 and December 31, 2018, 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 whom 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 consolidated financial statements in conformity with U.S. generally accepted accounting principles. Actual results could differ from those estimates. Management considers the most significant estimates in preparing these consolidated financial statements to be the estimated costs at completion of electrical construction contracts in progress. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable and accrued billings, 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 on 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 Company has determined the fair value of its fixed rate other long-term debt to be $0.2 million using an interest rate of 4.22% (Level 2 input), which is the Company’s current interest rate on borrowings. The Company’s carrying value of long-term notes payable are estimated by management to approximate fair value since the interest rates prescribed by Branch Banking and Trust Company (the “Bank”) are variable market interest rates and are adjusted periodically and are classified as Level 2. 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 and as such, is classified as Level 2. Land and Land Development Costs and Residential Properties Under Construction The costs of a land purchase and any development expenses up to the initial construction phase of any residential property development project are recorded under the asset “land and land development costs.” Once construction commences, both the land development costs and construction costs are recorded under the asset “residential properties under construction.” The assets “land and land development costs” and “residential properties under construction” relating to specific projects are recorded as current assets when the estimated project completion date is less than one year from the date of the consolidated financial statements, or as non-current assets when the estimated project completion date is one year or more from the date of the consolidated financial statements. In accordance with Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-lived Assets Fair Value Measurement 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 previous workers’ compensation insurance policy, as described in note 10 Restricted Cash Goodwill and Intangible Assets Intangible assets with finite useful lives recorded in connection with a historical acquisition are 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. 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, 2018, the Company assessed the recoverability of its long-lived assets and goodwill, by reviewing relevant events and circumstances to evaluate the qualitative factors in addition to the quantitative impairment test. As a result, there was no impairment of the carrying amounts of such assets. Reclassifications Certain amounts previously reflected for the three and six months ended June 30, 2018 in the revenue disaggregation table within note 8 ASC Revenue Recognition and Significant Accounting Policies Disclosures 0.05 Business Segment Information Recent Accounting Pronouncements In February 2016, Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Updates (“ASU”) 2016-02, ASC 842 Leases The Company elected the “package of practical expedients” permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company did not recognize right-of-use assets or lease liabilities, including not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components. Leases In January 2017, the FASB issued ASU 2017-04, which eliminates Step 2 of the current goodwill impairment test. A goodwill impairment loss will instead be measured at the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the recorded amount of goodwill allocated to that reporting unit. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company is currently assessing the impact that adoption will have on its consolidated financial statements however, the Company does not expect this ASU to have a significant impact on its consolidated financial statements. |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Contract Liabilities | Note 2 – Contract Assets and Contract Liabilities On January 1, 2018 the Company adopted the new accounting standard ASC 606 and all the related amendments (“new revenue standard”) to all applicable contracts using the modified retrospective method. Applicable contracts did not include contracts considered substantially complete. Contracts that were modified before the beginning of the earliest period presented were not retrospectively restated. Instead, the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price as of the date of adoption. Adoption of this standard did not result in significant changes to the Company’s accounting policies, business processes, systems or controls, or have a material impact on its financial position, results of operations and cash flows. The following table presents the net contract assets and liabilities for the electrical construction operations as of the dates indicated: June 30, 2019 December 31, 2018 $ Change Contract assets (1) $ 15,270,062 $ 12,030,000 $ 3,240,062 Contract liabilities (2) (1,864,836 ) (1,845,049 ) (19,787 ) Net contract assets $ 13,405,226 $ 10,184,951 $ 3,220,275 (1) Contract assets consist of amounts under the caption “ Costs and estimated earnings in excess of billings on uncompleted contracts. ” (2) Contract liabilities consist of the aggregate of amounts presented under the caption “ Billings in excess of costs and estimated earnings on uncompleted contracts ” and any contract loss accruals included in “ Accounts payable and accrued liabilities. ” The following table presents the changes in the net contract assets and liabilities for the electrical construction operations for the six months ended June 30, 2019: $ Change Six Months Ended June 30, 2019 Cumulative adjustment due to changes in contract values (1) $ 1,792,183 Cumulative adjustment due to changes in estimated costs at completion (2,788,666 ) Revenue recognized in the period 60,167,437 Amounts reclassified to receivables (56,002,387 ) Impairment of contract assets (2) 51,708 Total $ 3,220,275 (1) Amount attributable to contract modifications accounted for on a cumulative catch-up basis where the customer has approved a change in the scope or price of the contract, where the modification is treated as part of the existing contract and where the remaining goods and services are not distinct. (2) For the six months ended June 30, 2019, $1.0 million of the total revenue recognized in the current period was attributable to the contract liability billings in excess of costs and estimated earnings on uncompleted contracts’ balance as of December 31, 2018. Note 8 – ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures On January 1, 2018, the Company adopted the new revenue standard ASC 606 and all the related amendments (“new revenue standard”). Adoption of this standard did not result in significant changes to the Company’s accounting policies, business processes, systems or controls, or have a material impact on its financial position, results of operations and cash flows. The Company concluded that the cumulative effect of initially applying the new revenue standard was immaterial and consequently did not record an adjustment to the opening balance of retained earnings. The Company’s significant accounting policies are detailed in “Note 1: Organization and Summary of Significant Accounting Policies” within Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company’s accounting policies as a result of adopting the new revenue standard are discussed below. To determine the proper revenue recognition method for contracts for electrical construction services, the Company evaluates whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For most of the contracts, the Company provides a significant service of integrating a complex set of tasks and components into a single project or capability. Hence, the entire contract is accounted for as one performance obligation. However, less likely, if a contract is separated into more than one performance obligation, the Company allocates the total transaction price for each performance obligation in an amount based on the estimated relative stand-alone selling prices of the promised goods or services underlying each performance obligation. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company generally recognizes revenue over time as it performs because of continuous transfer of control to the customer. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The cost-to-cost measure of progress is generally used for its contracts because it best depicts the transfer of control to the customer which occurs as the Company incurs costs on the contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue is recorded proportionally as costs are incurred. Due to the nature of the work required to be performed on many of the performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. The Company estimates variable consideration at the most likely amount which the Company expects to receive. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of all information (historical, current and forecasted) that is reasonably available to the Company. Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. The Company has a standard and disciplined quarterly estimated costs at completion process in which management reviews the progress and execution of our performance obligations. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g., to estimate increases in wages and prices for materials and related support cost allocations), and execution by our subcontractors, among other variables. Based on this analysis, any quarterly adjustments to net revenue, cost of electrical construction revenue and the related impact to operating income are recognized as necessary in the period they become known. The following table disaggregates the Company’s revenue for the three and six months ended June 30 as indicated: Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Electrical construction operations (1) Southeast $ 15,478,325 $ 15,841,543 $ 34,829,199 $ 27,825,088 mid-Atlantic 17,415,258 10,586,509 29,468,961 19,860,932 Texas-Southwest (3) 5,882,764 9,208,624 15,423,685 20,489,967 Other electrical construction (2), (3) 428,021 559,091 869,842 2,151,699 Total 39,204,368 36,195,767 80,591,687 70,327,686 Real estate development operations 5,175,851 1,311,477 11,268,788 1,618,254 Total revenue $ 44,380,219 $ 37,507,244 $ 91,860,475 $ 71,945,940 (1) (2) ( 3 ) three and six months ended June 30, 2018 The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of June 30, 2019 was $51.7 million, all of which is expected to be satisfied within the next twelve months. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 3 – Income Taxes The following table presents the provision for income tax and the effective tax rates from continuing operations for the three and six months ended June 30 as indicated: Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Income tax provision $ 482,357 $ 1,037,512 $ 1,309,621 $ 1,915,651 Effective income tax rate 37.1 % 32.5 % 33.5 % 29.6 % The Company’s expected tax rate for the year ending December 31, 2019, which was calculated based on the estimated annual operating results for the year, is 33.5%. The expected tax rate differs from the federal statutory rate of 21% due to nondeductible expenses and state income taxes. The Company’s effective tax rate for the three months ended June 30, 2019 was 37.1% and differs from the federal statutory rate of due to state income taxes. It is higher than our expected tax rate of due to the increase of nondeductible expenses in relationship to expected income from the prior quarter. . The Company accounts for income taxes in accordance with ASC 740, Income Taxes As of June 30, 2019, the Company’s deferred tax liabilities are primarily comprised of tax depreciation in excess of book depreciation and are offset by deferred tax assets, largely comprised of accrued vacation, accrued workers’ compensation claims, inventory adjustments, accrued remediation costs, percentage of completion capitalized cost method on long-term real estate construction, federal net operating loss carryovers and state bonus depreciation carryovers. 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 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 June 30, 2019 is approximately $9.7 million. The Company has gross unrecognized tax benefits of $4,000 and $5,000 as of June 30, 2019 and December 31, 2018, 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 2014 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. |
Commitments and Contingencies R
Commitments and Contingencies Related to Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Commitments and Contingencies Related to Discontinued Operations | Note 4 – Commitments and Contingencies Related to Discontinued operations represent former mining activities, the last of which ended in 2002. Pursuant to an agreement with the United States Environmental Protection Agency (the “EPA”), the Company performed certain remediation actions at a property sold over fifty years ago. This remediation work was completed by September 30, 2015. The Company has established a contingency provision related to discontinued operations, which was $0.5 million and $0.5 million, as of June 30, 2019 and December 31, 2018, respectively. No change to the provision was required for either of the three or six months ended June 30, 2019 or 2018. The remaining balance of the accrued remediation costs as of June 30, 2019 mainly represents estimated future charges for EPA response costs, monitoring of the property, and legal costs. The total costs to be incurred in future periods may vary from this estimate. The amounts recorded in the aforementioned contingency provision are not discounted. The provision will be reviewed periodically based upon facts and circumstances available at the time. |
Notes Payable and Other Long Te
Notes Payable and Other Long Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable and Other Long Term Debt | Note 5 – Notes Payable and Other Long-Term Debt Notes Payable The following table presents the balances of notes payable as of the dates indicated: Interest Rates Branch Banking and Trust Company Maturity Date June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Working Capital Loan November 28, 2020 $ — $ 5,000,000 — % 4.31 % $38.2 Million Equipment Loan March 9, 2024 35,832,000 23,920,000 4.22 % 4.31 % $ 4.5 Million Equipment Loan March 7, 2024 — — — % — % Total notes payable 35,832,000 28,920,000 Less unamortized debt issuance costs 70,271 27,086 Total notes payable, net 35,761,729 28,892,914 Less current portion of notes payable, net 7,458,207 7,161,890 Notes payable net, less current portion $ 28,303,522 $ 21,731,024 As of June 30, 2019, 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”), Precision Foundations, Inc. (“PFI”) and C and C Power Line, Inc. (“C&C”), collectively (the “Debtors,”) were parties to a Master Loan Agreement, dated May 24, 2018 (the “2018 Master Loan Agreement”), with Branch Banking and Trust Company (the “Bank”). On March 7, 2019, the Company, the Debtors and the Bank entered into a First Amendment to the 2018 Master Loan Agreement (the “Amendment”). The Amendment reflects new loans and modifications of loans, which are governed by the 2018 Master Loan Agreement and which were also entered into on March 7, 2019. As of June 30, 2019, the Company had a promissory note and a series of related ancillary agreements with the Bank, under the 2018 Master Loan Agreement and the Amendment, providing for a revolving line of credit loan for a maximum principal amount of $18.0 million (the “Working Capital Loan”). Borrowings under the Working Capital Loan were $0.0 and $5.0 million, as of June 30, 2019 and December 31, 2018. As a credit guarantor to the Bank, the Company is contingently liable for the guaranty of a subsidiary obligation under an irrevocable letter of credit related to workers’ compensation. The amount of this letter of credit was $0.6 million as of both June 30, 2019 and December 31, 2018. On March 7, 2019, the Company, the Debtors and the Bank entered into a modification of the $27.49 Million Equipment Loan, increasing it to a $38.2 million equipment loan (as increased, the “$38.2 Million Equipment Loan”) and a new $4.5 million equipment promissory note (the “$4.5 Million Equipment Loan”). Borrowings of $22.7 million, outstanding as of March 7, 2019, plus accrued interest under the $27.49 Million Equipment Loan continue under the $38.2 Million Equipment Loan. The $15.5 million balance remaining on the $38.2 Million Equipment Loan was drawn by the Company on March 8, 2019 for equipment purchases that were made on or after August 1, 2018. Borrowings under the $38.2 Million Equipment Loan were $35.8 million as of June 30, 2019 and borrowings under the $27.49 Million Equipment Loan (as predecessor to the $38.2 Million Equipment Loan) were $23.9 million as of December 31, 2018. Under the documentation related to the $38.2 Million Equipment Loan, principal payments of $598,000 plus accrued interest commenced on March 9, 2019 and will continue monthly thereafter until and including the payment due on December 9, 2019. Thereafter, equal monthly principal payments of $650,000, plus accrued interest, will commence on January 9, 2020, and continue monthly thereafter until the March 9, 2024 maturity date. Under the documentation related to the $4.5 Million Equipment Loan, borrowings will be made only for the purchase of equipment currently held by the Company under master lease agreements and will not exceed the cost of the lease buy-out. Interest only payments on any amounts drawn commenced on April 7, 2019, and will continue monthly through and including the payment due on March 7, 2020. Thereafter, principal payments on any amounts drawn of $93,750 plus accrued interest will commence on April 7, 2020, and continue monthly thereafter until and including the payment due on March 7, 2024. As of June 30, 2019, all loan agreements between the Debtors and the Bank, under the 2018 Master Loan Agreement and the Amendment, are guaranteed by the Debtors and include the grant of a continuing security interest in all now owned and after acquired and wherever located personal property of the Debtors. The Working Capital Loan, the $38.2 Million Equipment Loan and the $4.5 Million Equipment Loan each 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 as described in the documentation related to each loan. 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. Other Long-Term Debt As of June 30, 2019, the Company had an equipment purchase loan agreement for a specialty piece of equipment to be used in the Company’s electrical construction operations in the amount of $405,000 plus interest and sales tax. The agreement requires monthly payments of $10,687 plus interest at a 5.85% fixed rate. The loan matures on June 14, 2021 and permits prepayment without penalties. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 – 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 June 30, 2019, outstanding performance bonds issued on behalf of the Company’s electrical construction subsidiaries amounted to approximately $56.0 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. Legal Proceedings The Company is involved in various legal claims arising in the ordinary course of business. The Company has concluded that the ultimate disposition of these matters should not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. |
Income Per Share of Common Stoc
Income Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Income Per Share of Common Stock | Note 7 – 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 June 30, 2019 and 2018, the Company had no common stock equivalents. For both the three and six months ended June 30, 2019 the computation of the weighted average number of common stock shares outstanding excludes 3,291,238 shares of Treasury Stock. For both the three and six months ended June 30, 2018, the computation of the weighted average number of common stock shares outstanding excludes 2,362,418 shares of Treasury Stock. |
ASC 606 Revenue Recognition and
ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Contract Liabilities | Note 2 – Contract Assets and Contract Liabilities On January 1, 2018 the Company adopted the new accounting standard ASC 606 and all the related amendments (“new revenue standard”) to all applicable contracts using the modified retrospective method. Applicable contracts did not include contracts considered substantially complete. Contracts that were modified before the beginning of the earliest period presented were not retrospectively restated. Instead, the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price as of the date of adoption. Adoption of this standard did not result in significant changes to the Company’s accounting policies, business processes, systems or controls, or have a material impact on its financial position, results of operations and cash flows. The following table presents the net contract assets and liabilities for the electrical construction operations as of the dates indicated: June 30, 2019 December 31, 2018 $ Change Contract assets (1) $ 15,270,062 $ 12,030,000 $ 3,240,062 Contract liabilities (2) (1,864,836 ) (1,845,049 ) (19,787 ) Net contract assets $ 13,405,226 $ 10,184,951 $ 3,220,275 (1) Contract assets consist of amounts under the caption “ Costs and estimated earnings in excess of billings on uncompleted contracts. ” (2) Contract liabilities consist of the aggregate of amounts presented under the caption “ Billings in excess of costs and estimated earnings on uncompleted contracts ” and any contract loss accruals included in “ Accounts payable and accrued liabilities. ” The following table presents the changes in the net contract assets and liabilities for the electrical construction operations for the six months ended June 30, 2019: $ Change Six Months Ended June 30, 2019 Cumulative adjustment due to changes in contract values (1) $ 1,792,183 Cumulative adjustment due to changes in estimated costs at completion (2,788,666 ) Revenue recognized in the period 60,167,437 Amounts reclassified to receivables (56,002,387 ) Impairment of contract assets (2) 51,708 Total $ 3,220,275 (1) Amount attributable to contract modifications accounted for on a cumulative catch-up basis where the customer has approved a change in the scope or price of the contract, where the modification is treated as part of the existing contract and where the remaining goods and services are not distinct. (2) For the six months ended June 30, 2019, $1.0 million of the total revenue recognized in the current period was attributable to the contract liability billings in excess of costs and estimated earnings on uncompleted contracts’ balance as of December 31, 2018. Note 8 – ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures On January 1, 2018, the Company adopted the new revenue standard ASC 606 and all the related amendments (“new revenue standard”). Adoption of this standard did not result in significant changes to the Company’s accounting policies, business processes, systems or controls, or have a material impact on its financial position, results of operations and cash flows. The Company concluded that the cumulative effect of initially applying the new revenue standard was immaterial and consequently did not record an adjustment to the opening balance of retained earnings. The Company’s significant accounting policies are detailed in “Note 1: Organization and Summary of Significant Accounting Policies” within Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company’s accounting policies as a result of adopting the new revenue standard are discussed below. To determine the proper revenue recognition method for contracts for electrical construction services, the Company evaluates whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For most of the contracts, the Company provides a significant service of integrating a complex set of tasks and components into a single project or capability. Hence, the entire contract is accounted for as one performance obligation. However, less likely, if a contract is separated into more than one performance obligation, the Company allocates the total transaction price for each performance obligation in an amount based on the estimated relative stand-alone selling prices of the promised goods or services underlying each performance obligation. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company generally recognizes revenue over time as it performs because of continuous transfer of control to the customer. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The cost-to-cost measure of progress is generally used for its contracts because it best depicts the transfer of control to the customer which occurs as the Company incurs costs on the contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue is recorded proportionally as costs are incurred. Due to the nature of the work required to be performed on many of the performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. The Company estimates variable consideration at the most likely amount which the Company expects to receive. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of all information (historical, current and forecasted) that is reasonably available to the Company. Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. The Company has a standard and disciplined quarterly estimated costs at completion process in which management reviews the progress and execution of our performance obligations. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g., to estimate increases in wages and prices for materials and related support cost allocations), and execution by our subcontractors, among other variables. Based on this analysis, any quarterly adjustments to net revenue, cost of electrical construction revenue and the related impact to operating income are recognized as necessary in the period they become known. The following table disaggregates the Company’s revenue for the three and six months ended June 30 as indicated: Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Electrical construction operations (1) Southeast $ 15,478,325 $ 15,841,543 $ 34,829,199 $ 27,825,088 mid-Atlantic 17,415,258 10,586,509 29,468,961 19,860,932 Texas-Southwest (3) 5,882,764 9,208,624 15,423,685 20,489,967 Other electrical construction (2), (3) 428,021 559,091 869,842 2,151,699 Total 39,204,368 36,195,767 80,591,687 70,327,686 Real estate development operations 5,175,851 1,311,477 11,268,788 1,618,254 Total revenue $ 44,380,219 $ 37,507,244 $ 91,860,475 $ 71,945,940 (1) (2) ( 3 ) three and six months ended June 30, 2018 The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of June 30, 2019 was $51.7 million, all of which is expected to be satisfied within the next twelve months. |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Customer Concentration | Note 9 – Customer Concentration For the six months ended June 30, 2019 and 2018, the three largest customers accounted for 53.6% and 65.7%, respectively, of the Company’s total revenue. For the three months ended June 30, 2019 and 2018, the three largest customers accounted for 53.4% and 65.5%, respectively, of the Company’s total revenue. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Cash And Investments [Abstract] | |
Restricted Cash | Note 10 – Restricted Cash Restricted cash, reported under “Deferred charges and other assets” on the Company’s consolidated balance sheet, represents amounts deposited in a trust account to secure the Company’s obligations in connection with the Company’s previous workers’ compensation insurance policy. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows as of the dates indicated: June 30, 2019 December 31, 2018 Cash and cash equivalents $ 15,473,938 $ 11,376,373 Restricted cash 25,980 25,980 Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 15,499,918 $ 11,402,353 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 11 – Goodwill and Other Intangible Assets The following table presents the gross and net balances of our goodwill and intangible assets as of the dates indicated: June 30, 2019 December 31, 2018 Useful Life (Years) 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 $ (234,668 ) $ 405,332 $ 640,000 $ (213,334 ) $ 426,666 Customer relationships 20 350,000 (96,250 ) 253,750 350,000 (87,500 ) 262,500 Non-competition agreement 5 10,000 (10,000 ) — 10,000 (10,000 ) — Other 1 13,800 (13,800 ) — 13,800 (13,800 ) — Total $ 1,013,800 $ (354,718 ) $ 659,082 $ 1,013,800 $ (324,634 ) $ 689,166 Amortization of definite-lived intangible assets will be approximately $0.06 million annually for 2019 through 2023. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 12 – Leases In February 2016, the FASB issued ASU 2016-02, ASC 842 Leases to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). On January 1, 2019, the Company adopted the accounting pronouncement issued using the modified retrospective method. The Company elected the “package of practical expedients” permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company did not recognize right-of-use assets or lease liabilities, including not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components. Adoption of the new standard resulted in the recording of additional operating right-of-use assets and operating lease liabilities of approximately $4.3 million and $4.3 million, respectively, as of January 1, 2019. The adoption of this standard did not impact the Company’s retained earnings liquidity, results of operations or its compliance with its debt covenants. The Company modified existing controls and processes to support the adoption of the new lease accounting standard that the Company adopted as of January 1, 2019. From time to time, the Company enters into leases primarily for the electrical construction operation’s equipment needs and to a lesser extent office facilities. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of equipment rather than purchasing them. The Company’s leases have remaining terms ranging from months to seven years, some of which may include options to extend the lease term. Currently, all of the Company’s leases contain fixed payment terms. Additionally, all of our month-to-month leases are cancelable by the Company, at any time and are not included in our right-of-use asset or liability. At June 30, 2019, the Company had no leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Financing Leases The Company currently does not have any leases that are classified as financing leases under ASC 842 Leases. Operating Right of Use Leases Operating right-of-use leases are reported under “ on the Company’s consolidated balance sheet reported under “ The following table presents a summary of the Company’s lease assets and lease liabilities as of June 30, 2019: Classification June 30, 2019 Lease Assets Operating lease assets Right of use assets $ 5,934,791 Lease Liabilities Current operating lease liabilities Current portion of lease liability $ 2,659,377 Non-current operating lease liabilities Other accrued liabilities 3,255,934 Total lease liabilities $ 5,915,311 The total weighted-average discount rate and remaining lease term for the Company’s operating leases was 4.25% and 4.60 years, respectively, as of June 30, 2019. Operating lease costs for the three and six months ended June 30, 2019 were $0.8 million and $2.0 million, respectively and approximate the cash payments for these periods. The following table presents the Company’s maturity analysis of its operating lease liabilities as of June 30, 2019 June 30, 2019 2019 $ 1,767,905 2020 1,435,657 2021 643,760 2022 640,853 2023 and beyond 2,039,190 Total lease payments $ 6,527,365 Less: interest (612,054 ) Present value of lease liabilities $ 5,915,311 The following table provides the future minimum lease payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018: December 31, 2018 2019 $ 3,613,980 2020 910,778 2021 88,469 2022 and beyond 114,466 Total minimum operating lease payments $ 4,727,693 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 13 – Business Segment Information Segment The Company is currently involved in two segments, electrical construction and real estate development. There were no material amounts of sales or transfers between segments and no material amounts of foreign sales. Any inter-segment sales have been eliminated. Certain amounts associated with deferred income tax assets allocated in each segment were reflected as of December 31, 2018 in the assets table and have been reclassified to conform to the total assets presentation as of June 30, 2019. This reclassification had no impact on the total assets reported as of December 31, 2018. The following table sets forth certain segment information for the three and six months ended June 30 as indicated : Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Continuing Operations Revenue Electrical construction 39,204,368 36,195,767 80,591,687 70,327,686 Real estate development 5,175,851 1,311,477 11,268,788 1,618,254 Total revenue $ 44,380,219 $ 37,507,244 $ 91,860,475 $ 71,945,940 Operating expenses Electrical construction 36,735,008 31,632,967 75,088,621 60,720,891 Real estate development 4,562,333 1,079,459 9,451,126 1,510,493 Corporate 1,433,307 1,430,456 2,756,117 2,898,646 Total operating expenses $ 42,730,648 $ 34,142,882 $ 87,295,864 $ 65,130,030 Operating income (loss) Electrical construction 2,469,360 4,562,800 5,503,066 9,606,795 Real estate development 613,518 232,018 1,817,662 107,761 Corporate (1,433,307 ) (1,430,456 ) (2,756,117 ) (2,898,646 ) Total operating income $ 1,649,571 $ 3,364,362 $ 4,564,611 $ 6,815,910 Other (expenses) income, net Electrical construction (392,335 ) (173,924 ) (716,648 ) (337,295 ) Real estate development (647 ) (19,885 ) (5,499 ) (38,972 ) Corporate 44,890 18,452 65,900 33,175 Total other expenses, net $ (348,092 ) $ (175,357 ) $ (656,247 ) $ (343,092 ) Net income (loss) before taxes Electrical construction 2,077,025 4,388,876 4,786,418 9,269,500 Real estate development 612,871 212,133 1,812,163 68,789 Corporate (1,388,417 ) (1,412,004 ) (2,690,217 ) (2,865,471 ) Total net income before taxes $ 1,301,479 $ 3,189,005 $ 3,908,364 $ 6,472,818 Capital Expenditures Electrical construction 1,796,690 4,142,856 13,438,986 7,530,320 Real estate development 59,048 38,483 59,048 41,559 Corporate 113,854 21,495 837,738 5,212 Total $ 1,969,592 $ 4,202,834 $ 14,335,772 $ 7,577,091 Depreciation and Amortization Electrical construction 2,708,308 1,972,540 5,260,544 3,831,005 Real estate development 6,091 4,969 11,765 9,317 Corporate 24,084 24,724 47,253 49,420 Total $ 2,738,483 $ 2,002,233 $ 5,319,562 $ 3,889,742 Operating income (loss) equals total operating revenue less operating costs and expenses inclusive of depreciation and amortization, and selling, general and administrative expenses. Operating costs and expenses also include any gains or losses on the sale of property and equipment. Operating income (loss) excludes interest expense, interest income, other income and income taxes. The following table sets forth assets by segment as of the dates indicated: Assets June 30, 2019 December 31, 2018 Electrical construction 109,840,070 93,625,017 Real estate development 6,911,642 14,557,323 Corporate 9,631,139 4,366,135 Total $ 126,382,851 $ 112,548,475 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 the construction of electrical infrastructure for the utility industry and industrial customers and to a lesser extent real estate development. The principal market for the Company’s electrical construction operation is primarily in the Southeast, mid-Atlantic and Texas-Southwest regions of the United States. The principal market for the Company’s real estate development operation is along the east coast of Central Florida. 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, 2018, 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 consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. |
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 reasonable means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2019 and December 31, 2018, 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 whom 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 consolidated financial statements in conformity with U.S. generally accepted accounting principles. Actual results could differ from those estimates. Management considers the most significant estimates in preparing these consolidated financial statements to be the estimated costs at completion of electrical construction contracts in progress. |
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, 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 on 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 Company has determined the fair value of its fixed rate other long-term debt to be $0.2 million using an interest rate of 4.22% (Level 2 input), which is the Company’s current interest rate on borrowings. The Company’s carrying value of long-term notes payable are estimated by management to approximate fair value since the interest rates prescribed by Branch Banking and Trust Company (the “Bank”) are variable market interest rates and are adjusted periodically and are classified as Level 2. 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 and as such, is classified as Level 2. |
Land and Land Development Costs and Residential Properties Under Construction | Land and Land Development Costs and Residential Properties Under Construction The costs of a land purchase and any development expenses up to the initial construction phase of any residential property development project are recorded under the asset “land and land development costs.” Once construction commences, both the land development costs and construction costs are recorded under the asset “residential properties under construction.” The assets “land and land development costs” and “residential properties under construction” relating to specific projects are recorded as current assets when the estimated project completion date is less than one year from the date of the consolidated financial statements, or as non-current assets when the estimated project completion date is one year or more from the date of the consolidated financial statements. In accordance with Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-lived Assets Fair Value Measurement |
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 previous workers’ compensation insurance policy, as described in note 10 Restricted Cash |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets with finite useful lives recorded in connection with a historical acquisition are 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. 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, 2018, the Company assessed the recoverability of its long-lived assets and goodwill, by reviewing relevant events and circumstances to evaluate the qualitative factors in addition to the quantitative impairment test. As a result, there was no impairment of the carrying amounts of such assets. |
Reclassifications | Reclassifications Certain amounts previously reflected for the three and six months ended June 30, 2018 in the revenue disaggregation table within note 8 ASC Revenue Recognition and Significant Accounting Policies Disclosures 0.05 Business Segment Information |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Updates (“ASU”) 2016-02, ASC 842 Leases The Company elected the “package of practical expedients” permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company did not recognize right-of-use assets or lease liabilities, including not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components. Leases In January 2017, the FASB issued ASU 2017-04, which eliminates Step 2 of the current goodwill impairment test. A goodwill impairment loss will instead be measured at the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the recorded amount of goodwill allocated to that reporting unit. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company is currently assessing the impact that adoption will have on its consolidated financial statements however, the Company does not expect this ASU to have a significant impact on its consolidated financial statements. |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table presents the net contract assets and liabilities for the electrical construction operations as of the dates indicated: June 30, 2019 December 31, 2018 $ Change Contract assets (1) $ 15,270,062 $ 12,030,000 $ 3,240,062 Contract liabilities (2) (1,864,836 ) (1,845,049 ) (19,787 ) Net contract assets $ 13,405,226 $ 10,184,951 $ 3,220,275 (1) Contract assets consist of amounts under the caption “ Costs and estimated earnings in excess of billings on uncompleted contracts. ” (2) Contract liabilities consist of the aggregate of amounts presented under the caption “ Billings in excess of costs and estimated earnings on uncompleted contracts ” and any contract loss accruals included in “ Accounts payable and accrued liabilities. ” The following table presents the changes in the net contract assets and liabilities for the electrical construction operations for the six months ended June 30, 2019: $ Change Six Months Ended June 30, 2019 Cumulative adjustment due to changes in contract values (1) $ 1,792,183 Cumulative adjustment due to changes in estimated costs at completion (2,788,666 ) Revenue recognized in the period 60,167,437 Amounts reclassified to receivables (56,002,387 ) Impairment of contract assets (2) 51,708 Total $ 3,220,275 (1) Amount attributable to contract modifications accounted for on a cumulative catch-up basis where the customer has approved a change in the scope or price of the contract, where the modification is treated as part of the existing contract and where the remaining goods and services are not distinct. (2) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30 as indicated: Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Income tax provision $ 482,357 $ 1,037,512 $ 1,309,621 $ 1,915,651 Effective income tax rate 37.1 % 32.5 % 33.5 % 29.6 % |
Notes Payable and Other Long _2
Notes Payable and Other Long Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The following table presents the balances of notes payable as of the dates indicated: Interest Rates Branch Banking and Trust Company Maturity Date June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Working Capital Loan November 28, 2020 $ — $ 5,000,000 — % 4.31 % $38.2 Million Equipment Loan March 9, 2024 35,832,000 23,920,000 4.22 % 4.31 % $ 4.5 Million Equipment Loan March 7, 2024 — — — % — % Total notes payable 35,832,000 28,920,000 Less unamortized debt issuance costs 70,271 27,086 Total notes payable, net 35,761,729 28,892,914 Less current portion of notes payable, net 7,458,207 7,161,890 Notes payable net, less current portion $ 28,303,522 $ 21,731,024 |
ASC 606 Revenue Recognition a_2
ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenue for the three and six months ended June 30 as indicated: Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Electrical construction operations (1) Southeast $ 15,478,325 $ 15,841,543 $ 34,829,199 $ 27,825,088 mid-Atlantic 17,415,258 10,586,509 29,468,961 19,860,932 Texas-Southwest (3) 5,882,764 9,208,624 15,423,685 20,489,967 Other electrical construction (2), (3) 428,021 559,091 869,842 2,151,699 Total 39,204,368 36,195,767 80,591,687 70,327,686 Real estate development operations 5,175,851 1,311,477 11,268,788 1,618,254 Total revenue $ 44,380,219 $ 37,507,244 $ 91,860,475 $ 71,945,940 (1) (2) ( 3 ) three and six months ended June 30, 2018 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Cash And Investments [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows as of the dates indicated: June 30, 2019 December 31, 2018 Cash and cash equivalents $ 15,473,938 $ 11,376,373 Restricted cash 25,980 25,980 Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 15,499,918 $ 11,402,353 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 December 31, 2018 Useful Life (Years) 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 $ (234,668 ) $ 405,332 $ 640,000 $ (213,334 ) $ 426,666 Customer relationships 20 350,000 (96,250 ) 253,750 350,000 (87,500 ) 262,500 Non-competition agreement 5 10,000 (10,000 ) — 10,000 (10,000 ) — Other 1 13,800 (13,800 ) — 13,800 (13,800 ) — Total $ 1,013,800 $ (354,718 ) $ 659,082 $ 1,013,800 $ (324,634 ) $ 689,166 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of Lease Assets and Lease Liabilities | The following table presents a summary of the Company’s lease assets and lease liabilities as of June 30, 2019: Classification June 30, 2019 Lease Assets Operating lease assets Right of use assets $ 5,934,791 Lease Liabilities Current operating lease liabilities Current portion of lease liability $ 2,659,377 Non-current operating lease liabilities Other accrued liabilities 3,255,934 Total lease liabilities $ 5,915,311 |
Summary of Maturity Analysis of Operating Lease Liabilities | The following table presents the Company’s maturity analysis of its operating lease liabilities as of June 30, 2019 June 30, 2019 2019 $ 1,767,905 2020 1,435,657 2021 643,760 2022 640,853 2023 and beyond 2,039,190 Total lease payments $ 6,527,365 Less: interest (612,054 ) Present value of lease liabilities $ 5,915,311 |
Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Leases | The following table provides the future minimum lease payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018: December 31, 2018 2019 $ 3,613,980 2020 910,778 2021 88,469 2022 and beyond 114,466 Total minimum operating lease payments $ 4,727,693 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following table sets forth certain segment information for the three and six months ended June 30 as indicated : Three Months Ended June 30, Six Months ended June 30, 2019 2018 2019 2018 Continuing Operations Revenue Electrical construction 39,204,368 36,195,767 80,591,687 70,327,686 Real estate development 5,175,851 1,311,477 11,268,788 1,618,254 Total revenue $ 44,380,219 $ 37,507,244 $ 91,860,475 $ 71,945,940 Operating expenses Electrical construction 36,735,008 31,632,967 75,088,621 60,720,891 Real estate development 4,562,333 1,079,459 9,451,126 1,510,493 Corporate 1,433,307 1,430,456 2,756,117 2,898,646 Total operating expenses $ 42,730,648 $ 34,142,882 $ 87,295,864 $ 65,130,030 Operating income (loss) Electrical construction 2,469,360 4,562,800 5,503,066 9,606,795 Real estate development 613,518 232,018 1,817,662 107,761 Corporate (1,433,307 ) (1,430,456 ) (2,756,117 ) (2,898,646 ) Total operating income $ 1,649,571 $ 3,364,362 $ 4,564,611 $ 6,815,910 Other (expenses) income, net Electrical construction (392,335 ) (173,924 ) (716,648 ) (337,295 ) Real estate development (647 ) (19,885 ) (5,499 ) (38,972 ) Corporate 44,890 18,452 65,900 33,175 Total other expenses, net $ (348,092 ) $ (175,357 ) $ (656,247 ) $ (343,092 ) Net income (loss) before taxes Electrical construction 2,077,025 4,388,876 4,786,418 9,269,500 Real estate development 612,871 212,133 1,812,163 68,789 Corporate (1,388,417 ) (1,412,004 ) (2,690,217 ) (2,865,471 ) Total net income before taxes $ 1,301,479 $ 3,189,005 $ 3,908,364 $ 6,472,818 Capital Expenditures Electrical construction 1,796,690 4,142,856 13,438,986 7,530,320 Real estate development 59,048 38,483 59,048 41,559 Corporate 113,854 21,495 837,738 5,212 Total $ 1,969,592 $ 4,202,834 $ 14,335,772 $ 7,577,091 Depreciation and Amortization Electrical construction 2,708,308 1,972,540 5,260,544 3,831,005 Real estate development 6,091 4,969 11,765 9,317 Corporate 24,084 24,724 47,253 49,420 Total $ 2,738,483 $ 2,002,233 $ 5,319,562 $ 3,889,742 |
Summary of Assets by Segment | The following table sets forth assets by segment as of the dates indicated: Assets June 30, 2019 December 31, 2018 Electrical construction 109,840,070 93,625,017 Real estate development 6,911,642 14,557,323 Corporate 9,631,139 4,366,135 Total $ 126,382,851 $ 112,548,475 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Impairment or disposal of long-lived assets | $ 0 | $ 0 | ||||
Impairment of goodwill and intangible asset | $ 0 | |||||
Total revenue | 44,380,219 | 37,507,244 | 91,860,475 | $ 71,945,940 | ||
Operating lease right-of-use asset | 5,934,791 | 5,934,791 | $ 0 | |||
Operating lease liability | 5,915,311 | 5,915,311 | ||||
ASU 2016-02 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Operating lease right-of-use asset | $ 4,300,000 | |||||
Operating lease liability | $ 4,300,000 | |||||
Texas-Southwest | Restatement Adjustment | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total revenue | $ (50,000) | $ (1,000,000) | ||||
Type of cost, good or service [Extensible List] | gv:ElectricalConstructionOperationsMember | gv:ElectricalConstructionOperationsMember | ||||
Other Electrical Construction | Restatement Adjustment | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total revenue | $ 50,000 | $ 1,000,000 | ||||
Type of cost, good or service [Extensible List] | gv:ElectricalConstructionOperationsMember | gv:ElectricalConstructionOperationsMember | ||||
Fixed Rate Long-term Installment Notes Payable | Notes Payable | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Debt, fair value | $ 200,000 | $ 200,000 | ||||
Fixed Rate Long-term Installment Notes Payable | Notes Payable | Discount Rate | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Fair value measurement input, debt | 0.0422 | 0.0422 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities - Summary of Contract Assets and Liabilities (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 15,270,062 | $ 12,030,000 |
Contract liabilities | (1,864,836) | (1,845,049) |
Net contract assets | 13,405,226 | $ 10,184,951 |
Change in contract assets | 3,240,062 | |
Change in contract liabilities | (19,787) | |
Total | $ 3,220,275 |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities - Changes in Contract Assets and Liabilities (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Cumulative adjustment due to changes in contract values | $ 1,792,183 |
Cumulative adjustment due to changes in estimated costs at completion | (2,788,666) |
Revenue recognized in the period | 60,167,437 |
Amounts reclassified to receivables | (56,002,387) |
Impairment of contract assets | 51,708 |
Total | $ 3,220,275 |
Contract Assets and Contract _5
Contract Assets and Contract Liabilities - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract liability billings in excess of costs and estimated earnings on uncompleted contracts | $ 1 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Tax (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 482,357 | $ 1,037,512 | $ 1,309,621 | $ 1,915,651 |
Effective income tax rate | 37.10% | 32.50% | 33.50% | 29.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Effective income tax rate | 37.10% | 32.50% | 33.50% | 29.60% | |
Minimum amount of future taxable income required to realize deferred tax assets | $ 9,700,000 | $ 9,700,000 | |||
Unrecognized tax benefits | $ 4,000 | $ 4,000 | $ 5,000 |
Commitments and Contingencies_2
Commitments and Contingencies Related to Discontinued Operations (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Discontinued Operations And Disposal Groups [Abstract] | ||
Contingency provision related to discontinued operations | $ 0.5 | $ 0.5 |
Notes Payable and Other Long _3
Notes Payable and Other Long Term Debt - Summary of Notes Payable (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 07, 2019 | Dec. 31, 2018 | |
Balances of the Company's notes payable | |||
Note payable balance | $ 35,832,000 | $ 28,920,000 | |
Less unamortized debt issuance costs | 70,271 | 27,086 | |
Total notes payable, net | 35,761,729 | 28,892,914 | |
Less current portion of notes payable, net | 7,458,207 | 7,161,890 | |
Notes payable net, less current portion | $ 28,303,522 | 21,731,024 | |
Working Capital Loan | |||
Balances of the Company's notes payable | |||
Maturity Date | Nov. 28, 2020 | ||
Note payable balance | $ 0 | $ 5,000,000 | |
Interest Rate | 0.00% | 4.31% | |
Loan agreement face amount | $ 18,000,000 | ||
$38.2 Million Equipment Loan | |||
Balances of the Company's notes payable | |||
Maturity Date | Mar. 9, 2024 | ||
Note payable balance | $ 35,832,000 | $ 22,700,000 | $ 23,920,000 |
Interest Rate | 4.22% | 4.31% | |
Loan agreement face amount | $ 38,200,000 | 38,200,000 | |
$4.5 Million Equipment Loan | |||
Balances of the Company's notes payable | |||
Maturity Date | Mar. 7, 2024 | ||
Note payable balance | $ 0 | $ 0 | |
Interest Rate | 0.00% | 0.00% | |
Loan agreement face amount | $ 4,500,000 | $ 4,500,000 |
Notes Payable and Other Long _4
Notes Payable and Other Long Term Debt (Narrative) (Details) - USD ($) | Mar. 08, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 09, 2019 | Mar. 07, 2024 | Mar. 09, 2024 | Mar. 07, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 35,832,000 | $ 28,920,000 | ||||||
Letter of credit related to workers' compensation | 600,000 | 600,000 | ||||||
Proceeds from notes payable | 15,500,000 | $ 2,816,961 | ||||||
Equipment Purchase Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement face amount | 405,000 | |||||||
Monthly repayment amount | $ 10,687 | |||||||
Stated rate | 5.85% | |||||||
Loan maturity date | Jun. 14, 2021 | |||||||
LIBOR | 2018 Master Loan Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread added to monthly LIBOR | 1.80% | |||||||
Working Capital Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement face amount | $ 18,000,000 | |||||||
Borrowings outstanding | $ 0 | 5,000,000 | ||||||
Loan maturity date | Nov. 28, 2020 | |||||||
$38.2 Million Equipment Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement face amount | $ 38,200,000 | $ 38,200,000 | ||||||
Borrowings outstanding | $ 35,832,000 | 22,700,000 | 23,920,000 | |||||
Proceeds from notes payable | $ 15,500,000 | |||||||
Frequency of periodic payment | monthly | |||||||
Loan maturity date | Mar. 9, 2024 | |||||||
$38.2 Million Equipment Loan | Scenario Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Periodic payment | $ 598,000 | $ 650,000 | ||||||
$4.5 Million Equipment Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement face amount | $ 4,500,000 | 4,500,000 | ||||||
Borrowings outstanding | $ 0 | 0 | ||||||
Frequency of periodic payment | monthly | |||||||
Loan maturity date | Mar. 7, 2024 | |||||||
$4.5 Million Equipment Loan | Scenario Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Periodic payment | $ 93,750 | |||||||
$27.49 Million Equipment Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement face amount | $ 27,490,000 | |||||||
Borrowings outstanding | $ 23,900,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2019USD ($) |
Performance Bond | |
Guarantee Obligations [Line Items] | |
Outstanding performance bonds | $ 56 |
Income Per Share of Common St_2
Income Per Share of Common Stock (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Shares of treasury stock excluded from weighted average number of common stock shares outstanding | 3,291,238 | 2,362,418 | 3,291,238 | 2,362,418 |
ASC 606 Revenue Recognition a_3
ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 44,380,219 | $ 37,507,244 | $ 91,860,475 | $ 71,945,940 |
Electrical construction | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 39,204,368 | 36,195,767 | 80,591,687 | 70,327,686 |
Electrical construction | Southeast | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 15,478,325 | 15,841,543 | 34,829,199 | 27,825,088 |
Electrical construction | mid-Atlantic | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 17,415,258 | 10,586,509 | 29,468,961 | 19,860,932 |
Electrical construction | Texas-Southwest | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 5,882,764 | 9,208,624 | 15,423,685 | 20,489,967 |
Electrical construction | Other electrical construction | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 428,021 | 559,091 | 869,842 | 2,151,699 |
Real estate development operations | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 5,175,851 | $ 1,311,477 | $ 11,268,788 | $ 1,618,254 |
ASC 606 Revenue Recognition a_4
ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures - Disaggregation of Revenue (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 44,380,219 | $ 37,507,244 | $ 91,860,475 | $ 71,945,940 |
Restatement Adjustment | Texas-Southwest | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | (50,000) | (1,000,000) | ||
Restatement Adjustment | Other Electrical Construction | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 50,000 | $ 1,000,000 |
ASC 606 Revenue Recognition a_5
ASC 606 Revenue Recognition and Significant Accounting Policies Disclosures - Performance Obligation Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Remaining performance obligation | $ 51.7 |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 53.40% | 65.50% | 53.60% | 65.70% |
Restricted Cash - Reconciliatio
Restricted Cash - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash And Investments [Abstract] | ||||
Cash and cash equivalents | $ 15,473,938 | $ 11,376,373 | ||
Restricted cash | 25,980 | 25,980 | ||
Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 15,499,918 | $ 11,402,353 | $ 9,972,550 | $ 18,631,784 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Goodwill | $ 101,407 | $ 101,407 |
Gross Carrying Amount | 1,013,800 | 1,013,800 |
Accumulated Amortization | (354,718) | (324,634) |
Net Carrying Amount | 659,082 | 689,166 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Amortization expense, 2019 | 60,000 | |
Amortization expense, 2020 | 60,000 | |
Amortization expense, 2021 | 60,000 | |
Amortization expense, 2022 | 60,000 | |
Amortization expense, 2023 | $ 60,000 | |
Trademarks/Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life | 15 years | |
Gross Carrying Amount | $ 640,000 | 640,000 |
Accumulated Amortization | (234,668) | (213,334) |
Net Carrying Amount | $ 405,332 | 426,666 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life | 20 years | |
Gross Carrying Amount | $ 350,000 | 350,000 |
Accumulated Amortization | (96,250) | (87,500) |
Net Carrying Amount | $ 253,750 | 262,500 |
Non-competition agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | |
Gross Carrying Amount | $ 10,000 | 10,000 |
Accumulated Amortization | (10,000) | (10,000) |
Net Carrying Amount | $ 0 | 0 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life | 1 year | |
Gross Carrying Amount | $ 13,800 | 13,800 |
Accumulated Amortization | (13,800) | (13,800) |
Net Carrying Amount | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use asset | $ 5,934,791 | $ 5,934,791 | $ 0 | |
Operating lease liability | $ 5,915,311 | $ 5,915,311 | ||
Remaining term of lease | 4 years 7 months 6 days | 4 years 7 months 6 days | ||
Weighted-average discount rate | 4.25% | 4.25% | ||
Operating lease cost | $ 800,000 | $ 2,000,000 | ||
Electrical construction operation’s equipment | ||||
Lessee Lease Description [Line Items] | ||||
Remaining term of lease | 7 years | 7 years | ||
leases with residual value guarantees | $ 0 | $ 0 | ||
ASU 2016-02 | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use asset | $ 4,300,000 | |||
Operating lease liability | $ 4,300,000 |
Leases - Summary of Lease Asset
Leases - Summary of Lease Assets and Lease Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Lease Assets | ||
Operating lease assets | $ 5,934,791 | $ 0 |
Lease Liabilities | ||
Current operating lease liabilities | 2,659,377 | $ 0 |
Non-current operating lease liabilities | $ 3,255,934 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesNoncurrent | |
Total lease liabilities | $ 5,915,311 |
Leases - Summary of Maturity An
Leases - Summary of Maturity Analysis of Operating Lease Liabilities (Details) | Jun. 30, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 | $ 1,767,905 |
2020 | 1,435,657 |
2021 | 643,760 |
2022 | 640,853 |
2023 and beyond | 2,039,190 |
Total lease payments | 6,527,365 |
Less: interest | (612,054) |
Present value of lease liabilities | $ 5,915,311 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details) | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 3,613,980 |
2020 | 910,778 |
2021 | 88,469 |
2022 and beyond | 114,466 |
Total minimum operating lease payments | $ 4,727,693 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Segment | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Total revenue | $ 44,380,219 | $ 37,507,244 | $ 91,860,475 | $ 71,945,940 |
Non-US | ||||
Segment Reporting Information [Line Items] | ||||
Material amounts of sales or transfers between segments | 0 | |||
Total revenue | $ 0 |
Business Segment Information _2
Business Segment Information - Summary of Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 44,380,219 | $ 37,507,244 | $ 91,860,475 | $ 71,945,940 |
Total operating expenses | 42,730,648 | 34,142,882 | 87,295,864 | 65,130,030 |
Total operating income | 1,649,571 | 3,364,362 | 4,564,611 | 6,815,910 |
Total other expenses, net | (348,092) | (175,357) | (656,247) | (343,092) |
Income before income taxes | 1,301,479 | 3,189,005 | 3,908,364 | 6,472,818 |
Capital Expenditures | 1,969,592 | 4,202,834 | 14,335,772 | 7,577,091 |
Depreciation and amortization | 2,738,483 | 2,002,233 | 5,319,562 | 3,889,742 |
Operating Segments | Electrical construction | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 39,204,368 | 36,195,767 | 80,591,687 | 70,327,686 |
Total operating expenses | 36,735,008 | 31,632,967 | 75,088,621 | 60,720,891 |
Total operating income | 2,469,360 | 4,562,800 | 5,503,066 | 9,606,795 |
Total other expenses, net | (392,335) | (173,924) | (716,648) | (337,295) |
Income before income taxes | 2,077,025 | 4,388,876 | 4,786,418 | 9,269,500 |
Capital Expenditures | 1,796,690 | 4,142,856 | 13,438,986 | 7,530,320 |
Depreciation and amortization | 2,708,308 | 1,972,540 | 5,260,544 | 3,831,005 |
Operating Segments | Real estate development | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,175,851 | 1,311,477 | 11,268,788 | 1,618,254 |
Total operating expenses | 4,562,333 | 1,079,459 | 9,451,126 | 1,510,493 |
Total operating income | 613,518 | 232,018 | 1,817,662 | 107,761 |
Total other expenses, net | (647) | (19,885) | (5,499) | (38,972) |
Income before income taxes | 612,871 | 212,133 | 1,812,163 | 68,789 |
Capital Expenditures | 59,048 | 38,483 | 59,048 | 41,559 |
Depreciation and amortization | 6,091 | 4,969 | 11,765 | 9,317 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total operating expenses | 1,433,307 | 1,430,456 | 2,756,117 | 2,898,646 |
Total operating income | (1,433,307) | (1,430,456) | (2,756,117) | (2,898,646) |
Total other expenses, net | 44,890 | 18,452 | 65,900 | 33,175 |
Income before income taxes | (1,388,417) | (1,412,004) | (2,690,217) | (2,865,471) |
Capital Expenditures | 113,854 | 21,495 | 837,738 | 5,212 |
Depreciation and amortization | $ 24,084 | $ 24,724 | $ 47,253 | $ 49,420 |
Business Segment Information _3
Business Segment Information - Summary of Identifiable Assets by Segment (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 126,382,851 | $ 112,548,475 |
Operating Segments | Electrical construction | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 109,840,070 | 93,625,017 |
Operating Segments | Real estate development | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 6,911,642 | 14,557,323 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 9,631,139 | $ 4,366,135 |