Annual report pursuant to Section 13 and 15(d)

Business Segment, Business Credit Risks and Concentration

v3.19.1
Business Segment, Business Credit Risks and Concentration
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Business Segment, Business Credit Risks and Concentration
Business Segment, Business Credit Risks and Concentration
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.
The following table sets forth certain segment information as of December 31 for the years indicated:
Continuing Operations
 
2018
 
2017
Revenue
 
 
 
 
Electrical construction
 
$
136,526,511

 
$
109,154,476

Real estate development
 
1,622,331

 
4,799,043

Total revenue
 
138,148,842

 
113,953,519

Operating expenses
 
 
 
 
Electrical construction
 
123,914,953

 
95,463,721

Real estate development
 
1,924,835

 
4,177,558

Corporate
 
4,745,350

 
4,126,950

Total operating expenses
 
130,585,138

 
103,768,229

Operating income (loss)
 
 
 
 
Electrical construction
 
12,611,558

 
13,690,755

Real estate development
 
(302,504
)
 
621,485

Corporate
 
(4,745,350
)
 
(4,126,950
)
Total operating income
 
7,563,704

 
10,185,290

Other income (expenses), net
 
 
 
 
Electrical construction
 
(761,117
)
 
(562,233
)
Real estate development
 
(56,010
)
 
(71,945
)
Corporate
 
78,120

 
58,260

Total other expenses, net
 
(739,007
)
 
(575,918
)
Net income (loss) before taxes
 
 
 
 
Electrical construction
 
11,850,441

 
13,128,522

Real estate development
 
(358,514
)
 
549,540

Corporate
 
(4,667,230
)
 
(4,068,690
)
Total net income before taxes
 
$
6,824,697

 
$
9,609,372

Identifiable Assets
 
 
 
 
Electrical construction
 
$
93,642,412

 
$
78,745,673

Real estate development
 
16,444,209

 
8,713,310

Corporate
 
2,461,854

 
6,172,957

Total
 
$
112,548,475

 
$
93,631,940

Capital Expenditures
 
 
 
 
Electrical construction
 
$
19,514,124

 
$
10,191,515

Real estate development
 
42,545

 
1,065

Corporate
 
52,576

 
109,141

Total
 
$
19,609,245

 
$
10,301,721

Depreciation and Amortization
 
 
 
 
Electrical construction
 
$
8,319,362

 
$
7,086,361

Real estate development
 
21,279

 
15,207

Corporate
 
96,331

 
116,333

Total
 
$
8,436,972

 
$
7,217,901


Credit Risks
Financial instruments, mainly within the electrical construction operations, which potentially subject the Company to concentrations of credit risk, consist principally of accounts receivable and accrued billings in the amounts of $22.2 million and $21.6 million as of December 31, 2018 and 2017, respectively, which management reviews to assess the need to establish an allowance for doubtful accounts.
Cash and Cash Equivalents
The Company holds cash on deposit in U.S. banks, in excess of Federal Deposit Insurance Corporation insurance limits. The Company has not experienced and does not anticipate any losses in any such accounts. The Company mitigates this risk by doing business with well capitalized, quality financial institutions.
Customer Concentration
Revenue (in thousands of dollars) to customers exceeding 10% of the Company’s total revenue for the years ended December 31 as indicated are as follows:
 
2018
 
2017
 
Amount
 
% of Total revenue
 
Amount
 
% of Total revenue
Electrical construction operations
 
 
 
 
 
 
 
Customer A
$
39,866

 
29
 
$
38,306

 
34
Customer B
22,085

 
16
 
16,912

 
15
Customer C
16,972

 
12
 
11,681

 
10

Revenue by service/product (in thousands of dollars) for the years ended December 31 as indicated are as follows:
 
2018
 
2017
 
Amount
 
% of Total revenue
 
Amount
 
% of Total revenue
Electrical construction
 
 
 
 
 
 
 
Principal electrical construction operations (1)
$
129,022

 
93
 
$
100,604

 
88
Other electrical construction (2)
7,505

 
6
 
8,550

 
8
Total
136,527

 
99
 
109,154

 
96
Real estate development
1,622

 
1
 
4,799

 
4
Total revenue
$
138,149

 
100
 
$
113,953

 
100
___________________________
 
 
 
 
 
 
 
(1) Principal electrical construction operations include revenue from transmission lines, distribution systems, substations and drilled pier foundations.
(2) Other electrical construction includes revenue from storm work, fiber optics and other miscellaneous electrical construction items as disclosed in the revenue disaggregation reported in note 14.

The total of the above categories may differ from the sum of the components due to rounding.