Primoris Services Corp - Quarter Report: 2010 June (Form 10-Q)

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended June 30, 2010

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the transition period from                      to                     .

 

Commission file number 0001-34145

 

Primoris Services Corporation

(Exact name of registrant as specified in its charter)

 

 

Registrant’s telephone number, including area code: (949) 598-9242

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes o No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x

 

As of August 5, 2010, 44,909,619 shares of the registrant’s common stock were outstanding.

 

 

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PRIMORIS SERVICES CORPORATION

INDEX

 

		Page No.
Part I. Financial Information
Item 1. Financial Statements:
—Condensed Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009		3
—Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2010 and June 30, 2009		4
—Condensed Consolidated Statements of Stockholders’ Equity		5
—Condensed Consolidated Statements of Cash Flows for the three months and six months ended June 30, 2010 and June 30, 2009		6
—Notes to Condensed Consolidated Financial Statements		8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 3. Quantitative and Qualitative Disclosures About Market Risk		34
Item 4. Controls and Procedures		34
Part II. Other Information
Item 1. Legal Proceedings		34
Item 1A. Risk Factors		35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3. Defaults Upon Senior Securities		35
Item 4. (Removed and Reserved)		35
Item 5. Other Information		35
Item 6. Exhibits		35
Signatures		36

 

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PART I.  FINANCIAL INFORMATION

 

ITEM 1.  FINANCIAL STATEMENTS

 

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Amounts)

(Unaudited)

 

		June 30, 2010			December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents		$	87,283		$	90,004
Short term investments		33,000			30,058
Restricted cash		9,310			6,845
Accounts receivable, net		121,928			108,492
Costs and estimated earnings in excess of billings		22,091			11,378
Inventory		19,922			22,275
Deferred tax assets		5,630			5,630
Prepaid expenses and other current assets		12,375			5,501
Current assets from discontinued operations		—			5,304
Total current assets		311,539			285,487
Property and equipment, net		97,269			92,568
Investment in non-consolidated entities		3,133			5,599
Intangible assets, net		29,818			32,695
Goodwill		59,678			59,678
Total assets		$	501,437		$	476,027
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	64,392		$	62,568
Billings in excess of costs and estimated earnings		117,572			114,035
Accrued expenses and other current liabilities		37,819			34,992
Distributions and dividends payable		1,107			2,987
Current portion of long-term debt		9,694			6,482
Current portion of capital leases		3,537			4,220
Current portion of subordinated debt		10,575			10,397
Current liabilities of discontinued operations		733			6,511
Total current liabilities		245,429			242,192
Long-term debt, net of current portion		39,922			26,368
Long-term capital leases, net of current portion		6,512			7,734
Long-term subordinated debt, net of current portion		35,758			43,853
Deferred tax liabilities		2,643			2,643
Contingent earnout liabilities		9,910			9,278
Other long-term liabilities		1,354			—
Total liabilities		341,528			332,068
Commitments and contingencies
Stockholders’ equity
Preferred stock—$.0001 par value, 1,000,000 shares authorized, 0 issued and outstanding at June 30, 2010 and 81,852.78 at December 31, 2009		—			—
Common stock—$.0001 par value, 90,000,000 shares authorized, 44,238,611 and 32,704,903 issued and outstanding at June 30, 2010 and December 31, 2009		4			3
Additional paid-in capital		105,348			100,644
Retained earnings		54,557			42,982
Accumulated other comprehensive income		—			330
Total stockholders’ equity		159,909			143,959
Total liabilities and stockholders’ equity		$	501,437		$	476,027

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

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PRIMORIS SERVICES CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2010			2009			2010			2009
Revenues		$	203,187		$	119,610		$	378,169		$	243,160
Cost of revenues		176,551			98,867			327,060			207,911
Gross profit		26,636			20,743			51,109			35,249
Selling, general and administrative expenses		15,823			8,143			29,269			15,559
Operating income		10,813			12,600			21,840			19,690
Other income (expense):
Income from non-consolidated entities		1,756			1,736			2,724			3,903
Foreign exchange gain (loss)		94			(26		)	186			203
Other expense		(322		)	—			(631		)	—
Interest income		153			205			333			464
Interest expense		(1,220		)	(539		)	(2,527		)	(1,065		)
Income from continuing operations, before provision for income taxes		11,274			13,976			21,925			23,195
Provision for taxes		(4,187		)	(5,355		)	(8,140		)	(8,954		)
Income from continuing operations		7,087			8,621			13,785			14,241
Loss on discontinued operations, net of income taxes		—			(41		)	—			(21		)
Net income		$	7,087		$	8,580		$	13,785		$	14,220
Earnings per share:
Basic:
Income from continuing operations		$	0.16		$	0.26		$	0.36		$	0.45
Income on discontinued operations		$	—		$	—		$	—		$	—
Net income		$	0.16		$	0.26		$	0.36		$	0.45
Diluted:
Income from continuing operations		$	0.16		$	0.26		$	0.30		$	0.44
Income on discontinued operations		$	—		$	—		$	—		$	—
Net income		$	0.16		$	0.26		$	0.30		$	0.44
Weighted average common shares outstanding:
Basic		43,163			32,477			38,210			31,303
Diluted		45,407			32,835			45,451			32,477

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

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PRIMORIS SERVICES CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In Thousands, Except Share Amounts)

(Unaudited)

 

		Common Stock					Preferred Stock					Additional Paid-in			Retained			Accum. Other Comprehensive			Total Stockholders’
		Shares		Amount			Shares		Amount			Capital			Earnings			Income			Equity
Balance, December 31, 2008		29,977,339		$	3		—		$	—		$	34,796		$	20,528		$	103		$	55,430
Net income		—		—			—		—			—			25,912			—			25,912
Issuance of common shares to Former Primoris owners		2,500,025		—			—		—			—			—			—			—
Stock issued for the purchase of Cravens Services, Inc.		139,082		—			—		—			1,000			—			—			1,000
Repurchase of warrants		—										(94		)							(94		)
Dividends — common		—		—			—		—			—			(3,254		)	—			(3,254		)
Dividends — preferred		—		—			—		—			—			(204		)	—			(204		)
Foreign currency hedge effect		—		—			—		—			—			—			227			227
Preferred stock issued for purchase of James Construction Group		—		—			81,852.78		—			64,500			—			—			64,500
Warrant exercises		88,457		—			—		—			442			—			—			442
Balance, December 31, 2009		32,704,903		$	3		81,852.78		$	—		$	100,644		$	42,982		$	330		$	143,959
Net income		—		—			—		—			—			6,698			—			6,698
Issuance of common shares to Former Primoris owners		2,499,975		—			—		—			390			—			—			390
Additional contingent stock issued for the purchase of Cravens Services, Inc.		74,906		—			—		—			600			—			—			600
Dividends — common		—		—			—		—			—			(898		)	—			(898		)
Dividends — preferred		—		—			—		—			—			(205		)	—			(205		)
Foreign currency hedge effect		—		—			—		—			—			—			(178		)	(178		)
Warrant exercises		620,699		—			—		—			3,104			—			—			3,104
Balance, March 31, 2010		35,900,483		$	3		81,852.78		$	—		$	104,738		$	48,577		$	152		$	153,470
Net income		—		—			—		—			—			7,087			—			7,087
Cancelled shares — foreign manager — sale of discontinued operations		(49,080	)	—			—		—			(400		)	—			—			(400		)
Conversion of JCG preferred stock to common stock		8,185,278		1			(81,852.78	)	—			—			—			—			1
Dividends — common		—		—			—		—			—			(1,107		)	—			(1,107		)
Foreign currency hedge effect		—		—			—		—			—			—			(152		)	(152		)
Warrant exercises		201,930		—			—		—			1,010			—			—			1,010
Balance, June 30, 2010		44,238,611		$	4		—		$	—		$	105,348		$	54,557		$	—		$	159,909

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

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PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

		Six Months Ended
		June 30,
		2010			2009
Cash flows from operating activities:
Net income		$	13,785		$	14,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,303			3,862
Amortization of intangible assets		2,877			18
Gain on sale of property and equipment		(1,228		)	(1,499		)
Income from non-consolidated entities		(2,724		)	(3,903		)
Non-consolidated entity distributions		5,190			3,400
Loss on discontinued operations		—			(21		)
Changes in assets and liabilities:
Restricted cash		(2,465		)	230
Accounts receivable		(13,436		)	(4,859		)
Costs and estimated earnings in excess of billings		(10,713		)	5,118
Inventory, prepaid expenses and other current assets		(4,851		)	31
Accounts payable		1,824			(5,817		)
Billings in excess of costs and estimated earnings		3,537			(5,139		)
Accrued expenses and other current liabilities		3,068			(1,976		)
Contingent earnout liabilities		631			—
Other long-term liabilities		1,354			—
Net cash provided by operating activities		5,152			3,665
Cash flows from investing activities:
Purchase of property and equipment		(13,789		)	(3,058		)
Proceeds from sale of property and equipment		2,013			1,652
Purchase of short-term investments		(2,942		)	(55		)
Advances to non-consolidated entities		—			(1,036		)
Net cash used in investing activities		(14,718		)	(2,497		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		20,000			—
Repayment of long-term debt		(3,234		)	(3,956		)
Repayment of capital leases		(1,905		)	(957		)
Repayment of subordinated debt		(7,166		)	—
Proceeds from exercise of warrants for the issuance of common stock		4,114			—
Repurchase of warrants		—			(93		)
Dividends paid		(2,124		)	(1,561		)
Cash distributions to selling stockholders		(1,966		)	(4,947		)
Net cash provided (used) in financing activities		7,719			(11,514		)
Cash flows from discontinued operations:
Operating activities		(874		)	(3,281		)
Net cash provided (used) in discontinued operations		(874		)	(3,281		)
Net change in cash and cash equivalents		(2,721		)	(13,627		)
Cash and cash equivalents at beginning of the period		90,004			72,848
Cash and cash equivalents at end of the period		$	87,283		$	59,221

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

 

		Six Months Ended
		June 30,
		2010			2009
		(Unaudited)
Cash paid during the period for:
Interest		$	2,527		$	1,065
Income taxes		$	7,688		$	11,100

 

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES

 

		Six Months Ended
		June 30,
		2010			2009
		(Unaudited)
Non-cash activities:
Accrued dividends		$	1,107		$	812

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

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PRIMORIS SERVICES CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

Note 1—Business Activity

 

Organization and operations— Primoris Services Corporation, a Delaware corporation (“Primoris”, the “Company”, “we”, “us” or “our”), and its wholly-owned subsidiaries ARB, Inc. (“ARB”), ARB Structures, Inc., Onquest, Inc., James Construction Group, LLC (“JCG”), Cravens Services, Inc. (“Cravens”), Born Heaters Canada, ULC, Cardinal Contractors, Inc., GML Coatings, LLC, Cardinal Mechanical, L.P. and Stellaris, LLC, collectively, are engaged in various construction and product engineering activities.

 

The Company’s underground and directional drilling operations install, replace and repair natural gas, petroleum, telecommunications and water pipeline systems. The Company’s industrial, civil and engineering operations construct and provide maintenance services to industrial facilities including power plants, petrochemical facilities and other processing plants and construct multi-level parking structures.

 

On December 18, 2009, the Company acquired JCG.  JCG is one of the largest general contractors based in the Gulf Coast states and is engaged in highway, industrial and environmental construction, primarily in Louisiana, Texas and Florida.  JCG is the successor company to T. L. James and Company, Inc., a well-known Louisiana company that has been in business for over 80 years.  Headquartered in Baton Rouge, Louisiana, JCG serves both government and private clients.

 

Corporate headquarters for the Company are located in Lake Forest, California.

 

Note 2—Basis of Presentation

 

Interim Consolidated Financial Statements—The interim condensed consolidated financial statements for the three-month and six-month periods ended June 30, 2010 and 2009 have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As such, certain disclosures, which would substantially duplicate the disclosures contained in the Company’s latest audited consolidated financial statements, have been omitted. This Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 (the “Second Quarter 2010 Report”) should be read in concert with the Company’s Annual Report on Form 10-K, filed on March 11, 2010, which contains the Company’s audited consolidated financial statements for the year ended December 31, 2009.

 

The interim financial information for the three-month and six-month periods ended June 30, 2010 and 2009 is unaudited and has been prepared on the same basis as the audited financial statements. However, the financial statements contained in this Second Quarter 2010 Report do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for audited financial statements. In the opinion of management, the unaudited information includes all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the interim financial information.

 

Certain amounts in prior periods have been reclassified in order to conform to the present period financial statement presentation.  Specifically, the prior period financial information was revised to conform to our current presentation of continuing and discontinued operations (see Note 10, “Discontinued Operations”).

 

Revenue recognition—A number of factors relating to the business of the Company affect the recognition of contract revenue. The Company typically structures contracts as unit-price, time and material, fixed-price or cost plus fixed fee. Revenue is recognized on the percentage-of-completion method for all fixed-price contracts. Under the percentage-of-completion method, estimated contract revenue and resulting income is generally accrued based on costs incurred to date as a percentage of total estimated costs. Total estimated costs are impacted by changes in productivity, scheduling, the cost of labor, subcontracts, materials and equipment and other unforeseen events. Additionally, external factors such as weather, client needs, client delays in providing permits and approvals, labor availability, governmental regulation and politics may affect the progress of a project’s completion and thus the timing of revenue recognition. If a current estimate of total contract cost determines a loss on a contract, the projected loss is recognized in full.

 

The caption “Costs and estimated earnings in excess of billings” represents the excess of contract revenues from fixed-priced contracts recognized under the percentage-of-completion method over billings to date. For those fixed-priced contracts in which billings exceed contract revenues recognized to date, excesses are included in the caption “Billings in excess of costs and estimated earnings”.

 

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Revenues on cost-plus and time and materials contracts are recognized as the related work is completed.

 

In accordance with the terms of our contracts, certain retainage provisions are withheld by customers until completion and acceptance of the contracts. Final payments of the majority of such amounts are expected to be received in the following operating cycle, which is typically within a year.

 

Note 3—Recent Accounting Pronouncements

 

Fair Value Disclosures

 

In January 2010, the FASB issued Accounting Standards Update No. 2010-06, “Improving Disclosures about Fair Value Measurements” (an update to ASC Topic 820 “Fair Value Measurements and Disclosures”).   ASU 2010-06 requires additional disclosures about fair value measurements including transfers in and out of Levels 1 and 2 and a higher level of disaggregation for the different types of financial instruments. For the reconciliation of Level 3 fair value measurements, information about purchases, sales, issuances and settlements should be presented separately. This ASU is effective for annual and interim reporting periods beginning after December 15, 2009 for most of the new disclosures and for periods beginning after December 15, 2010 for the new Level 3 disclosures. Comparative disclosures are not required in the first year the disclosures are required.  As of January 1, 2010, the Company adopted this accounting standard update, which did not result in a material impact on our financial statements.

 

Consolidation of Variable Interest Entities

 

In June 2009, the FASB issued an amendment to an accounting standard for ASC Topic 810 “Consolidation”, (formerly referred to as “Statement of Financial Accounting Standards No. 167, “Amendments to FASB Interpretation No. 46R” (“SFAS 167”)) which sets rules for determining whether to consolidate an entity that is insufficiently capitalized or is not controlled through voting (or similar rights). These rules are based on an entity’s purpose and design and the company’s ability to direct the activities that most significantly impact the entity’s economic performance.  SFAS 167 requires additional disclosures about the reporting company’s involvement with variable-interest entities and any significant changes in risk exposure due to that involvement as well as its affect on the company’s financial statements.  The accounting standard became effective January 1, 2010.  The adoption of this amendment did not result in a material impact on our financial statements.

 

Note 4—Fair Value Measurements

 

ASC Topic 820, “Fair Value Measurements and Disclosures”, defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements.  ASC Topic 820 addresses fair value GAAP for financial assets and financial liabilities that are re-measured and reported at fair value at each reporting period and for non-financial assets and liabilities that are re-measured and reported at fair value on a recurring basis, which included goodwill and intangible assets for purposes of impairment assessments.

 

In general, fair values determined by Level 1 use quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are “unobservable data points” for the asset or liability and include situations where there is little, if any, market activity for the asset or liability.

 

The following table presents, using the fair value hierarchy levels identified under ASC Topic 820, the Company’s financial assets that are required to be measured at fair value at June 30, 2010 and December 31, 2009:

 

					Fair Value Measurements at Reporting Date
		Amount Recorded on Balance Sheet			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets as of June 30, 2010:
Cash and cash equivalents		$	87,283		$	87,283		—			—
Short-term investments		$	33,000		$	33,000		—			—
Assets as of December 31, 2009:
Cash and cash equivalents		$	90,004		$	90,004		—			—
Short-term investments		$	30,058		$	30,058		—			—
Other assets — hedge contracts		$	266		—			$	266		—

 

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In addition to the assets listed in the table, other short-term financial assets and liabilities of the Company consist of accounts receivable, accounts payable and certain accrued liabilities.  These financial assets and liabilities generally approximate fair market value based on their short-term nature.  The carrying value of the Company’s long-term debt approximates fair value based on comparison with current prevailing market rates for loans of similar risks and maturities.

 

Note 5—Accounts Receivable

 

The following is a summary of the Company’s accounts receivable as of the dates shown:

 

		June 30, 2010			December 31, 2009
Contracts receivable, net of allowance for doubtful accounts of $200 for June 30, 2010 and for December 31, 2009		$	105,021		$	82,254
Retention		15,560			25,907
		120,581			108,161
Due from affiliates		1			—
Other accounts receivable		1,346			331
		$	121,928		$	108,492

 

Amounts “due from affiliates” primarily relate to receivables from related parties (see Note 7, “Equity Method Investments” and Note 14, “Related Party Transactions”) for the performance of construction contracts. Contract revenues earned from related parties were approximately $362 and $5,611 for the three months, and $1,288 and $11,319 for the six months ended June 30, 2010 and 2009, respectively.

 

Note 6—Costs and Estimated Earnings on Uncompleted Contracts

 

Costs and estimated earnings on uncompleted contracts consist of the following at:

 

		June 30, 2010			December 31, 2009
Costs incurred on uncompleted contracts		$	1,741,409		$	2,036,251
Provision for estimated loss on uncompleted contracts		539			332
Gross profit recognized		164,044			201,254
		1,905,992			2,237,837
Less: billings to date		(2,001,473		)	(2,340,494		)
		$	(95,481	)	$	(102,657	)

 

This net amount is included in the accompanying condensed consolidated balance sheet under the following captions:

 

		June 30, 2010			December 31, 2009
Costs and estimated earnings in excess of billings		$	22,091		$	11,378
Billings in excess of costs and estimated earnings		(117,572		)	(114,035		)
		$	(95,481	)	$	(102,657	)

 

Note 7—Equity Method Investments

 

Otay Mesa Power Partners

 

During 2007, the Company established a joint venture, Otay Mesa Power Partners (“OMPP”), for the sole purpose of constructing a power plant near San Diego, California. The Company has a 40% interest in the venture and accounts for its investment in OMPP using the equity method. ARB acts as one of OMPP’s primary subcontractors. As of June 30, 2010, ARB had total project contracts with OMPP amounting to $49,019, which are essentially complete.  ARB recognized $83 in related party revenues in the six months ended June 30, 2010 and

 

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$10,384 in the six months ended June 30, 2009. These revenues are included in the contract revenues earned from related parties as stated in Note 5, “Accounts Receivable”. The following is a summary of the financial position and results as of and for the periods ended:

 

		June 30, 2010			December 31, 2009
OMPP—Joint Venture
Balance sheet data
Assets		$	350		$	9,176
Liabilities		238			1,493
Net assets		$	112		$	7,683
Company’s equity investment in venture		$	67		$	4,610
		Three months ended June 30							Six months ended June 30,
		2010			2009				2010			2009
Earnings data:
Revenue		$	—		$	34,494			$	—		$	78,386
Gross profit		$	—		$	4,473			$	—		$	15,558
Earnings before taxes		$	—		$	4,475			$	—		$	15,563
Company’s equity in earnings		$	—		$	2,700			$	—		$	5,085

 

OMPP distributed $7,571 to its equity holders during the six months ended June 30, 2010, of which the Company’s share, as calculated under the joint venture agreement, was $4,543.  For the six months ended June 30, 2009, OMPP distributed $8,500, of which the Company’s share was $3,400. The OMPP agreement states that distributions made prior to the completion of the contract are considered advances on account of each partner’s share as determined at the completion of the underlying contract.

 

All Day Electric

 

The Company purchased a 49% interest in All Day Electric (“All Day”) in December 2008 for $500 and accounts for this investment under the equity method. All Day engages in electrical construction activities mainly in Northern California.  ARB recognized $1,205 in related party revenues in the six months ended June 30, 2010 and $234 in the six months ended June 30, 2009.  The following is a summary of the financial position and results as of and for the periods ended:

 

		June 30, 2010			December 31, 2009
All Day Electric
Balance sheet data
Assets		$	3,983		$	5,661
Liabilities		3,371			4,615
Net assets		$	612		$	1,046
Company’s equity investment in venture		$	300		$	513
		Three months ended June 30							Six months ended June 30,
		2010			2009				2010			2009
Earnings data:
Revenue		$	4,003		$	2,299			$	6,906		$	3,270
Gross profit		$	243		$	456			$	139		$	584
Net income		$	(24	)	$	147			$	(434	)	$	(298	)
Company’s equity in earnings		$	(11	)	$	72			$	(213	)	$	(146	)

 

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