What changed in this filing

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Item 1. Financial Statements

2024-05-08 compared with 2024-02-12 · 183 added, 101 removed, 458 unchanged (38% of the section changed)

16 unchanged sentences

( 47,799,840 )

Total fixed assets

Total property and equipment, net

Right-of-use assets-operating lease

14 unchanged sentences

Shareholders’ equity

Common stock, $ .0001 par value Authorized 50,000,000 shares, 17,885,615 issued and 16,567,185 outstanding at December 31, 2023 and September 30, 2023

Treasury stock, 1,318,430 shares at December 31, 2023 and September 30, 2023

Common stock, $ .0001 par value Authorized 50,000,000 shares, 17,896,016 issued and 16,577,586 outstanding at March 31, 2024 and 17,885,615 issued and 16,567,185 outstanding at September 30, 2023

Treasury stock, 1,318,430 shares at March 31, 2024 and September 30, 2023

Additional paid in capital

9 unchanged sentences

Three Months Ended

Six Months Ended

Cost of revenues

Selling and administrative expenses

Income from operations

(Loss) income from operations

( 1,082,397 )

( 1,987,094 )

( 1,316,970 )

Other income (expense)

Interest income

Other nonoperating income (expense)

Other nonoperating expense

Interest expense

Loss on sale of equipment

Income before income taxes

Income tax expense (benefit)

( 1,224,300 )

( 1,073,974 )

Gain on sale of equipment

( 1,148,028 )

(Loss) income before income taxes

( 1,481,880 )

( 2,523,760 )

( 2,464,998 )

Income tax (benefit) expense

Net (loss) income

( 1,108,828 )

( 1,873,600 )

( 1,735,226 )

Weighted average shares outstanding-basic

Weighted average shares-diluted

Earnings per share-basic

Earnings per share-diluted

(Loss) earnings per share-basic

(Loss) earnings per share-diluted

The Accompanying Notes are an Integral Part of These Financial Statements

1 unchanged sentence

Consolidated Statements of Cash Flows

Three Months Ended

Six Months Ended

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation expense

Net income (loss)

( 1,735,226 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Accreted interest on PPP loans

Loss on sale of equipment

Depreciation expense

Gain on sale of equipment

Provision for deferred taxes

Amortization of intangible assets

Accreted interest on note payable

Accreted interest on notes payable

Vested restricted stock award compensation expense

Decrease in accounts receivable

1 unchanged sentence

( 2,511,449 )

( 1,214,242 )

Increase in other receivables

(Increase) decrease in contract assets

Decrease in contract assets

(Increase) decrease in prepaid expenses and other

( 1,586,692 )

Decrease in prepaid expenses and other

Increase (decrease) in accounts payable

Decrease in accounts payable

( 3,357,277 )

( 6,155,465 )

Decrease in accrued expenses and other current liabilities

2 unchanged sentences

(Decrease) increase in contract liabilities

( 1,434,485 )

Net cash provided by operating activities

8 unchanged sentences

Cash flows from financing activities:

Dividends on common stock

Treasury stock purchased

Borrowings on lines of credit and short-term debt, net of (repayments)

4 unchanged sentences

( 2,883,118 )

Net cash (used in) provided by financing activities

Net cash used in financing activities

( 1,881,052 )

( 2,306,851 )

(Decrease) increase in cash and cash equivalents

4 unchanged sentences

Purchases of property & equipment under financing agreements

Net operating lease right-of-use assets received in exchange for operating lease liabilities

Common dividends declared but not paid

Prepaid insurance premiums financed

Operating lease right-of-use asset disposals, net of acquisitions in exchange for operating liabilities

Supplemental disclosures of cash flows information:

3 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

For the three months ended December 31, 2023 and 2022

For the three and six months ended March 31, 2024 and 2023

Additional Paid

5 unchanged sentences

( 24,653,249 )

( 1,108,828 )

Vested restricted stock award

Balance at March 31, 2024

( 25,762,077 )

Additional Paid

4 unchanged sentences

( 32,131,099 )

( 1,873,600 )

Dividends on common stock ($ 0.05 per share on 16,667,185 shares)

Treasury stock purchased by company

Balance at March 31, 2023

( 34,838,059 )

The Accompanying Notes are an Integral Part of These Financial Statements

44 unchanged sentences

The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations.

The operating results for the three months ended December 31, 2023 and 2022 are not necessarily indicative of the results to be expected for the full year or any other interim period.

The operating results for the three and six months ended March 31, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year or any other interim period.

Principles of Consolidation

10 unchanged sentences

Please refer to Note 2 “ Summary of Significant Accounting Policies ” of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended September 30, 2023, for a more detailed discussion of our significant accounting policies.

There were no material changes to these significant accounting policies during the three months ended December 31, 2023.

ACCOUNTING FOR PPP LOANS

Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP.

There were no material changes to these significant accounting policies during the three and six months ended March 31, 2024.

ACCOUNTING FOR PAYCHECK PROTECTION PROGRAM LOANS

Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the Paycheck Protection Program (“PPP”).

On April 15, 2020, the Company and its subsidiaries, C.J.

Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $ 13.1 million pursuant to the PPP Loans.

Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with United Bank as its lender (the “Lender”) in an aggregate principal amount of $ 13.1 million pursuant to the PPP (collectively, the (“PPP Loans”).

In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $ 3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries.

7 unchanged sentences

The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans.

As a result of this uncertainty, the Company restated the previously issued financial statements of the Company that were included in the Reports.

As a result of this uncertainty, the Company restated the previously issued audited financial statements of the Company for the fiscal years 2022 and 2021.

The Company has recorded a short-term borrowing due to the SBA inquiry for the full $ 9.8 million, plus accrued interest for all periods presented.

48 unchanged sentences

Lump Sum, Unit Price, Cost Plus and Time and Materials (“T&M”).

The following tables present our disaggregated revenue for the three months ended December 31, 2023 and 2022:

Three Months Ended December 31, 2023

The following tables present our disaggregated revenue for the three and six months ended March 31, 2024 and 2023:

Three Months Ended March 31, 2024

Gas & Petroleum

9 unchanged sentences

Total revenue from contracts

Three Months Ended December 31, 2022

Six Months Ended March 31, 2024

Gas & Petroleum

9 unchanged sentences

Total revenue from contracts

Three Months Ended March 31, 2023

Gas & Petroleum

Mechanical, &

Total revenue

from contracts

Lump sum contracts

Unit price contracts

Cost plus and T&M contracts

Total revenue from contracts

Earned over time

Earned at point in time

Total revenue from contracts

Six Months Ended March 31, 2023

Gas & Petroleum

Mechanical, &

Total revenue

from contracts

Lump sum contracts

Unit price contracts

Cost plus and T&M contracts

Total revenue from contracts

Earned over time

Earned at point in time

Total revenue from contracts

CONTRACT BALANCES

5 unchanged sentences

The timing of billings to customers may generate contract assets or contract liabilities.

During the three months ended December 31, 2023, we recognized revenue of $ 13.5 million that was included in the contract liability balance at September 30, 2023.

During the three and six months ended March 31, 2024, we recognized revenue of $ 4.1 million and $ 17.6 million, respectively, that was included in the contract liability balance at September 30, 2023.

Accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following:

December 31, 2023

March 31, 2024

September 30, 2023

3 unchanged sentences

Cost and estimated earnings in excess of billings

( 1,306,839 )

Contract liabilities

Billings in excess of cost and estimated earnings

( 1,434,485 )

PERFORMANCE OBLIGATIONS

For the three months ended December 31, 2023, there was no significant revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2023.

For the three and six months ended March 31, 2024, there was no significant revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2023.

Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims.

At December 31, 2023, the Company had $ 132.2 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months.

At March 31, 2024, the Company had $ 145.3 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months.

UNCOMPLETED CONTRACTS

Costs, estimated earnings, and billings on uncompleted contracts as of December 31, 2023 and September 30, 2023, are summarized as follows:

December 31, 2023

Costs, estimated earnings, and billings on uncompleted contracts as of March 31, 2024 and September 30, 2023, are summarized as follows:

March 31, 2024

September 30, 2023

3 unchanged sentences

( 1,660,135 )

( 1,787,781 )

Costs and estimated earnings in excess of billed on uncompleted contracts

1 unchanged sentence

( 1,660,135 )

The Company’s unaudited backlog at December 31, 2023 and September 30, 2023 was $ 185.9 million and $ 229.8 million, respectively.

( 1,787,781 )

The Company’s unaudited backlog at March 31, 2024 and September 30, 2023 was $ 222.8 million and $ 229.8 million, respectively.

FAIR VALUE MEASUREMENTS

2 unchanged sentences

Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value

measurement guidance of the FASB ASC establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

The fair value measurement guidance of the FASB ASC establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

The three levels are defined as follows:

7 unchanged sentences

The fair value of the Company’s long term fixed-rate debt was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities.

The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $ 31.9 million at December 31, 2023 was $ 30.3 million.

The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $ 31.5 million at March 31, 2024 was $ 30.1 million.

The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $ 33.8 million at September 30, 2023 was $ 32.1 million.

1 unchanged sentence

EARNINGS PER SHARE

The amounts used to compute the earnings per share for the three months ended December 31, 2023 and 2022 are summarized below.

Three Months Ended

The amounts used to compute the earnings per share for the three and six months ended March 31, 2024 and 2023 are summarized below.

March 31, 2024

March 31, 2023

March 31, 2024

March 31, 2023

Net (loss) income

( 1,108,828 )

( 1,873,600 )

( 1,735,226 )

Weighted average shares outstanding-basic

Weighted average shares outstanding-diluted

Earnings per share available to common shareholders

Earnings per share available to common shareholders-diluted

(Loss) earnings per share available to common shareholders

(Loss) earnings per share available to common shareholders-diluted

The components of income taxes are as follows:

Three Months Ended

December 31, 2023

December 31, 2022

Six Months Ended

March 31, 2024

March 31, 2023

March 31, 2024

March 31, 2023

Total income tax expense (benefit)

2 unchanged sentences

The Company’s provision for income taxes is computed by applying a federal rate of 21.0 % and a state rate of 6.0 % to taxable income or loss after consideration of non-taxable and non-deductible items.

The effective income tax rate for the three months ended December 31, 2023, was 34.1 %, as compared to ( 135.5 )% for the same period in 2022.

The effective income tax rate for the three and six months ended March 31, 2024 was ( 25.2 )% and 42.3 %, respectively, as compared to ( 25.8 )% and ( 29.6 )%, respectively, for the same period in 2023.

Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses.

1 unchanged sentence

The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows:

March 31, 2024

September 30, 2023

9 unchanged sentences

A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company had $ 0 and $ 3.0 million of federal net operating loss carryforwards at December 31, 2023 and September 30, 2023, respectively.

The Company had state net operating loss carryforwards at December 31, 2023 and September 30, 2023, respectively that begin to expire in 2025, that were not significant.

The Company had $ 186,000 and $ 3.0 million of federal net operating loss carryforwards at March 31, 2024 and September 30, 2023, respectively.

The Company expects to exhaust the federal net operating loss carryforwards in the fiscal year ending September 30, 2025.

The Company had state net operating loss carryforwards at March 31, 2024 and September 30, 2023, respectively that begin to expire in 2025, that were not significant.

The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition.

The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax

benefits as a result of a lapse of the applicable statute of limitations.

The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses.

6 unchanged sentences

The line of credit is limited to a borrowing base calculation as summarized below:

December 31, 2023

March 31, 2024

September 30, 2023

13 unchanged sentences

The Company’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question.

Thus, the Company was in compliance with all covenants at December 31, 2023.

Thus, the Company was in compliance with all covenants at March 31, 2024.

The Company projects to meet all covenant requirements for the next twelve months.

Insurance Premiums Financed

The Company financed its captive insurance policy premiums on a short-term basis through a financing company for the calendar years ended December 31, 2023 and 2022.

The Company financed its captive insurance policy premiums on a short-term basis through a financing company for the calendar year ended December 31, 2023.

These insurance policies include workers’ compensation, general liability, automobile, umbrella, and equipment policies.

The Company made down payments in January 2023 and 2022 and financed the remaining premium amount over eleven monthly payments.

At December 31, 2023 and September 30, 2023, the remaining balance of the insurance premiums was $ 0 and $ 950,000 , respectively.

The Company made a down payment in January 2023 and financed the remaining premium amount over eleven monthly payments.

At March 31, 2024 and September 30, 2023, the remaining balance of the insurance premiums was $ 0 and $ 950,000 , respectively.

For the calendar year beginning January 1, 2024, the Company’s insurance company is accepting quarterly payments on certain insurance policies and the Company has prepaid the balance of the remaining policies as of March 31, 2024.

The Company has no insurance premiums financed as of March 31, 2024.

Paycheck Protection Program Loans

20 unchanged sentences

Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects.

A summary of short-term and long-term debt as of December 31, 2023 and September 30, 2023 is as follows:

A summary of short-term and long-term debt as of March 31, 2024 and September 30, 2023 is as follows:

March 31, 2024

September 30, 2023

Line of credit payable to bank, monthly interest with variable rate of 8.5 % at December 31, 2023, final payment due by June 28, 2024, guaranteed by certain directors of the Company.

Line of credit payable to bank, monthly interest with variable rate of 8.5 % at March 31, 2024, final payment due by June 28, 2024, guaranteed by certain directors of the Company.

Note payable to bank, due in monthly installments totaling $ 202,000 , including fixed interest at 7.25 %, final payment due June 2028, secured by equipment, guaranteed by certain directors of the Company.

2 unchanged sentences

Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $ 64,853 with fixed interest at 4.25 %, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company.

Notes payable to finance companies, due in monthly installments totaling $ 51,000 at December 31, 2023 and $ 50,000 at September 30, 2023, including interest ranging from 0.00 % to 6.92 %, final payments due January 2024 through August 2026, secured by equipment.

Notes payable to finance companies, due in monthly installments totaling $ 76,600 at March 31, 2024 and $ 50,000 at September 30, 2023, including interest ranging from 0.00 % to 6.0 %, final payments due April 2024 through August 2026, secured by equipment.

Note payable to finance company for insurance premiums financed, due in monthly installments totaling $ 327,000 in calendar year 2023 and $ 282,000 in calendar year 2022, including interest rate at 6.70 %, final payment due December 2023.

Notes payable to bank, due in monthly installments totaling $ 7,848 , including interest at 4.82 % , final payment due November 2034 secured by building and property.

Notes payable to bank, due in monthly installments totaling $ 12,580 , including variable interest of 9.5 % at December 31, 2023, final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company.

Notes payable to bank, due in monthly installments totaling $ 12,580 , including variable interest of 9.5 % at March 31, 2024, final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company.

Notes payable to bank, due in monthly installments totaling $ 59,932 , including fixed interest at 6.0 %, final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company.

Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $ 500,000 , including fixed interest at 3.25 %, final payment due December 31, 2026, unsecured.

Notes payable to bank, interest at 4.25 % of outstanding balance due in monthly installments between January 2021 and January 2022.

Beginning February 2022, note payments due in monthly installments totaling $ 68,150 , including variable interest of 9.5 % at December 31, 2023, with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company.

Notes payable to bank, due in monthly installments totaling $ 68,150 , including variable interest of 9.5 % at March 31, 2024, with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company.

Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $ 129,910 , fixed interest at 4.50 %, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company.

6 unchanged sentences

If a company fails this test or decides to bypass this step, it must proceed with a quantitative assessment of goodwill impairment.

The Company did no t have a goodwill impairment at December 31, 2023 or September 30, 2023.

The Company did no t have a goodwill impairment at March 31, 2024 or September 30, 2023.

A table of the Company’s goodwill is below:

March 31, 2024

September 30, 2023

2 unchanged sentences

A table of the Company’s intangible assets subject to amortization is below:

and Impairment

Remaining Life

1 unchanged sentence

Amortization and

and Impairment

(in months) at

1 unchanged sentence

Impairment at

Ended December 31,

Net Book Value

Intangible assets:

December 31, 2023

Original Cost

December 31, 2023

September 30,

at December 31, 2023

Ended March 31,

at September 30,

Intangible assets:

Original Cost

West Virginia Pipeline:

5 unchanged sentences

Total intangible assets

The amortization on identifiable intangible assets for the three months ended December 31, 2023 and 2022 was $ 108,142 and $ 132,780 , respectively.

The amortization on identifiable intangible assets for the three months ended March 31, 2024 and 2023 was $ 108,142 and $ 132,621 , respectively.

The amortization on identifiable intangible assets for the six months ended March 31, 2024 and 2023 was $ 216,284 and $ 265,401 , respectively.

Amortization expense associated with the identifiable intangible assets is expected to be as follows:

Amortization Expense

January 2024 to December 2024

January 2025 to December 2025

January 2026 to December 2026

January 2027 to December 2027

January 2028 to December 2028

April 2024 to March 2025

April 2025 to March 2026

April 2026 to March 2027

April 2027 to March 2028

April 2028 to March 2029

LEASE OBLIGATIONS

2 unchanged sentences

The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods.

The Company has two lease agreements for construction equipment with a combined amount of $ 160,000 .

The leases have a term of twenty-two months with a stated interest rate of 0 %, combined monthly installment payments of $ 6,645 and are cancellable at any time without penalty.

The Company has the right to purchase the equipment at the expiration of the leases by applying the two-month deposit paid.

The related assets and finance lease obligations associated with these lease agreements are included in the consolidated balance sheets within property, plant and equipment and long-term debt.

The Company had two lease agreements for construction equipment with a combined amount of $ 160,000 that were paid in full as of March 31, 2024.

The leases had a term of twenty-two months with a stated interest rate of 0 %, combined monthly installment

payments of $ 6,645 and were cancellable at any time without penalty.

The Company exercised the right to purchase the equipment at the expiration of the leases by applying the two-month deposit paid.

The related assets and finance lease obligations associated with these lease agreements had been included in the consolidated balance sheets within property, plant and equipment and long-term debt.

The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction.

The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $ 236,000 at inception, and a carrying value of $ 106,000 at December 31, 2023.

The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $ 144,000 at inception, and a carrying value of $ 40,000 at December 31, 2023.

The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $ 236,000 at inception, and a carrying value of $ 86,000 at March 31, 2024.

The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $ 144,000 at inception, and a carrying value of $ 24,000 at March 31, 2024.

The 4.5 % interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception.

2 unchanged sentences

This lease agreement was initially for thirty-one vehicles with a net present value of $ 1.2 million.

The Company had sixty-nine vehicles on lease at December 31, 2023.

The right-of-use operating lease has a carrying value of $ 2.5 million at December 31, 2023.

The Company had seventy-one vehicles on lease at March 31, 2024.

The right-of-use operating lease has a carrying value of $ 2.4 million at March 31, 2024.

Each vehicle leased under the master lease program has its own implicit rate ranging from 12.8 % to 15.6 %.

The Company has a right-of-use operating lease with RICA Developers, LLC acquired on August 12, 2022 and renewed for one year effective October 1, 2023.

This lease, for the Bridgeport, West Virginia facility, had a net present value of $ 125,000 at inception and a carrying value of $ 83,000 at December 31, 2023.

This lease, for the Bridgeport, West Virginia facility, had a net present value of $ 125,000 at inception and a carrying value of $ 64,000 at March 31, 2024.

The 8.5 % interest rate on the operating lease was based on the Company’s incremental borrowing rate at renewal.

The Company has a right-of-use operating lease acquired on March 28, 2023.

This lease, for the Winchester, Kentucky facility, had a net present value of $ 290,000 at inception and a carrying value of $ 231,000 at December 31, 2023.

This lease, for the Winchester, Kentucky facility, had a net present value of $ 290,000 at inception and a carrying value of $ 209,000 at March 31, 2024.

The 7.75 % interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception.

Schedules related to the Company’s operating leases at December 31, 2023 can be found below:

Schedules related to the Company’s operating leases at March 31, 2024 can be found below:

Operating Lease-Weighted Average Remaining Term

Present value of

remaining liability

Fiscal year end

6 unchanged sentences

Operating Lease Maturity Schedule

April 2024 to March 2025

April 2025 to March 2026

April 2026 to March 2027

April 2027 to March 2028

Less amounts representing interest

1 unchanged sentence

Three Months Ended

Six Months Ended

Three Months Ended

Six Months Ended

Operating Lease Expense

December 31, 2023

December 31, 2022

Operating lease 1

12 unchanged sentences

Three Months Ended

Six Months Ended

Three Months Ended

Six Months Ended

Cash Paid for Operating Leases

December 31, 2023

December 31, 2022

Operating lease 1

5 unchanged sentences

Rental expense can vary by reporting period due to equipment requirements on construction projects and the availability of Company owned equipment.

Rental expense, which is included in cost of goods sold on the consolidated statements of income, was $ 5.4 million and $ 2.7 million, respectively, for the three months ended December 31, 2023 and 2022.

Rental expense, which is included in cost of goods sold on the consolidated statements of income, was $ 3.3 million and $ 1.5 million, respectively, for the three months ended March 31, 2024 and 2023.

Rental expense was $ 8.7 million and $ 4.2 million, respectively, for the six months ended March 31, 2024 and 2023.

SUBSEQUENT EVENTS

On November 15, 2023, the Company’s Board of Directors approved an annual dividend of $ 0.06 per common share.

The 2024 dividend was paid on January 2, 2024 to holders of record as of December 15, 2023.

While this is expected to be an annual dividend, factors such as income from operations, cash flows, and overall financial outlook may affect future dividend payments.

On April 17, 2024, the United States Court of Appeals for the Third Circuit (the “Court”) affirmed the decision of the United States District Court for the Western District of Pennsylvania in a lawsuit filed by the Company against a former customer (“Defendant”) related to a dispute over work performed on a pipeline contract.

On May 1, 2024, the Defendant filed a Petition for Rehearing or Rehearing En Banc with the Court.

Please see Litigation on page 31 for further details.

Management has evaluated all subsequent events for accounting and disclosure.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements