What changed in this filing

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Item 1. Financial Statements

2021-07-28 compared with 2021-04-28 · 109 added, 77 removed, 510 unchanged (27% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data) March 31,

(in thousands, except share and per share data) June 30,

2021 December 31,

39 unchanged sentences

4,000,000 authorized shares;

none issued and outstanding at March 31, 2021 and December 31, 2020

none issued and outstanding at June 30, 2021 and December 31, 2020

Common stock—$ 0.01 par value per share;

100,000,000 authorized shares;

16,817,256 and 16,734,239 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively

16,867,470 and 16,734,239 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

Additional paid-in capital 159,624 158,618

10 unchanged sentences

Three months ended

June 30, Six months ended

(in thousands, except per share data) 2021 2020 2021 2020

20 unchanged sentences

Net income $ 21,219 $ 13,385 $ 41,147 $ 23,317

Other comprehensive income:

Other comprehensive income (loss):

Foreign currency translation adjustment 413 ( 39 ) 666 48

Other comprehensive income:

Other comprehensive income (loss):

413 ( 39 ) 666 48

Total comprehensive income $ 21,632 $ 13,346 $ 41,813 $ 23,365

16 unchanged sentences

Balance at March 31, 2020 — 16,685 166 153,477 ( 359 ) 221,698 374,982 4 374,986

Net income — — — — — 13,385 13,385 — 13,385

Stock issued under compensation plans, net — 23 1 — — — 1 — 1

Stock-based compensation expense — — — 1,093 — — 1,093 — 1,093

Other comprehensive loss — — — — ( 39 ) — ( 39 ) — ( 39 )

Stock issued - other — 1 — 24 — — 24 — 24

Balance at June 30, 2020 $ — 16,709 $ 167 $ 154,594 $ ( 398 ) $ 235,083 $ 389,446 $ 4 $ 389,450

Balance at December 31, 2020 — 16,734 $ 167 $ 158,618 $ 23 $ 270,480 $ 429,288 $ 4 $ 429,292

6 unchanged sentences

Balance at March 31, 2021 — 16,817 168 157,995 276 290,021 448,460 4 448,464

Net income — — — — — 21,219 21,219 — 21,219

Stock issued under compensation plans, net — 60 1 318 — — 319 — 319

Stock-based compensation expense — — — 1,948 — — 1,948 — 1,948

Shares repurchased — ( 10 ) ( 1 ) ( 637 ) — ( 96 ) ( 734 ) — ( 734 )

Other comprehensive income — — — — 413 — 413 — 413

Balance at June 30, 2021 $ — 16,867 $ 168 $ 159,624 $ 689 $ 311,144 $ 471,625 $ 4 $ 471,629

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended

Six months ended

(in thousands) 2021 2020

61 unchanged sentences

C&I provides a broad range of services, which include the design, installation, maintenance and repair of commercial and industrial wiring, the installation of traffic networks and the installation of bridge, roadway and tunnel lighting.

The COVID-19 pandemic caused a slowdown of certain projects due to specific state, local, municipal and customer mandated stay-at-home orders and new project requirements that were established to protect construction workers and the general public, most of which have impacted our C&I segment.

Although the majority of stay-at-home orders have been phased out, we are still experiencing impacts associated with the COVID-19 project-specific protocols.

We expect the project-specific requirements to remain in place which will continue to impact project schedules and workflow going forward.

Key estimates that could potentially be impacted include estimates of costs to complete contracts, the recoverability of goodwill and intangibles and allowance for doubtful accounts.

Basis of Presentation

14 unchanged sentences

If an investment in a joint venture contains a recourse or unfunded commitments to provide additional equity, distributions and/or losses in excess of the investment, a liability is recorded in other current liabilities on the Company’s consolidated balance sheets.

For joint ventures which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture, and are normally recorded by the Company one month in arrears.

For joint ventures in which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture, and are normally recorded by the Company one month in arrears.

The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received.

6 unchanged sentences

Additionally, the joint venture associated with the Company’s noncontrolling interest is a partnership, and consequently, the tax effect of only the Company’s share of the joint venture income is recognized by the Company.

The majority controlled joint venture made no distributions to its partners, and the Company made no capital contributions to the joint venture, during the three months ended March 31, 2021.

Additionally, there have been no changes in ownership during the three months ended March 31, 2021.

The majority controlled joint venture made no distributions to its partners, and the Company made no capital contributions to the joint venture, during the three and six months ended June 30, 2021.

Additionally, there have been no changes in ownership during the three and six months ended June 30, 2021.

The project associated with this joint venture was substantially completed in 2019.

7 unchanged sentences

Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and ineffective long-term monetary assets and liabilities are recorded in the “other income, net” line on the Company’s consolidated statements of operations.

Foreign currency losses and gains, recorded in other income, net, for the three months ended March 31, 2021 and 2020 were no t significant.

Foreign currency losses, recorded in other income, net, for the six months ended June 30, 2021 were $ 0.1 million.

Foreign currency gains, recorded in other income, net, for the six months ended June 30, 2020 were no t significant.

Effective foreign currency transaction gains and losses, arising primarily from long-term monetary assets and liabilities, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income.

5 unchanged sentences

The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition.

As of March 31, 2021 and 2020, the Company had recognized revenues of $ 14.0 million and $ 36.4 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects.

As of June 30, 2021 and 2020, the Company had recognized revenues of $ 6.0 million and $ 40.1 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects.

These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods.

The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process.

During the three months ended March 31, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.1 %, which resulted in increases in operating income of $ 0.6 million, net income of $ 0.4 million and diluted earnings per common share of $ 0.02 .

During the three months ended March 31, 2020, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.1 %.

These changes in estimates did no t have a significant impact to consolidated operating income, net income or diluted earnings per common share.

During the three months ended June 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.8 %, which resulted in increases in operating income of $ 5.1 million, net income of $ 3.6 million and diluted earnings per common share of $ 0.21 .

During the six months ended June 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.3 %, which resulted in increases in operating income of $ 3.9 million, net income of $ 2.7 million and diluted earnings per common share of $ 0.16 .

During the three months ended June 30, 2020, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.2 %, which resulted in increases in operating income of $ 1.2 million, net income of $ 0.9 million and diluted earnings per common share of $ 0.05 .

During the six months ended June 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.1 %, which resulted in decreases in operating income of $ 0.7 million, net income of $ 0.5 million and diluted earnings per common share of $ 0.03 .

Recent Accounting Pronouncements

10 unchanged sentences

The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved.

The allowance for doubtful accounts associated with contract assets was $ 0.4 million as of March 31, 2021 and December 31, 2020.

The allowance for doubtful accounts associated with contract assets was $ 0.3 million as of June 30, 2021 and $ 0.4 million as of December 31, 2020.

Contract assets consisted of the following:

(in thousands) March 31,

(in thousands) June 30,

2021 December 31,

4 unchanged sentences

Contract liabilities consisted of the following:

(in thousands) March 31,

(in thousands) June 30,

2021 December 31,

3 unchanged sentences

The following table provides information about contract assets and contract liabilities from contracts with customers:

(in thousands) March 31,

(in thousands) June 30,

2021 December 31,

3 unchanged sentences

The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work.

The amounts of revenue recognized in the period that were included in the opening contract liability balances were $ 41.4 million for the three months ended March 31, 2021 and $ 25.7 million for the three months ended March 31, 2020.

The amounts of revenue recognized in the period that were included in the opening contract liability balances were $ 22.3 million and $ 73.9 million for the three and six months ended June 30, 2021, respectively.

The amounts of revenue recognized in the period that were included in the opening contract liability balances were $ 16.9 million and $ 43.0 million for the three and six months ended June 30, 2020, respectively.

This revenue consists primarily of work performed on previous billings to customers.

The net asset position for contracts in process consisted of the following:

(in thousands) March 31,

(in thousands) June 30,

2021 December 31,

3 unchanged sentences

The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows:

(in thousands) March 31,

(in thousands) June 30,

2021 December 31,

5 unchanged sentences

These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them.

The Company’s leases have remaining terms ranging from one to six years , some of which may include options to extend the leases for up to five years , and some of which may include options to terminate the leases within one year .

The Company’s leases have remaining terms ranging from one to five years , some of which may include options to extend the leases for up to five years , and some of which may include options to terminate the leases within one year .

Currently, all the Company’s leases contain fixed payment terms.

1 unchanged sentence

Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability.

At March 31, 2021, the Company had several leases with residual value guarantees.

At June 30, 2021, the Company had several 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.

21 unchanged sentences

(in thousands) Three months ended

June 30, Six months ended

2021 2020 2021 2020

Finance lease cost:

5 unchanged sentences

The following is a summary of other information and supplemental cash flow information related to finance and operating leases:

Three months ended March 31,

Six months ended June 30,

(in thousands) 2021 2020

3 unchanged sentences

Right-of-use asset obtained in exchange for new operating lease obligations $ 4,387 $ 5,111

The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of March 31, 2021 were as follows:

(in thousands) Finance

Lease Obligations Operating Lease

Obligations Total

The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of June 30, 2021 were as follows:

(in thousands) Operating Lease

Remainder of 2021

$ 53 $ 7,083 $ 7,136

2022 — 8,036 8,036

2023 — 5,736 5,736

2024 — 2,968 2,968

2025 — 1,132 1,132

2026 — 796 796

Thereafter — — —

Total minimum lease payments 26,550

3 unchanged sentences

Long-term finance and operating lease obligations $ 15,211

The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods.

The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.

As of June 30, 2021, the Company had no outstanding finance lease obligations.

Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries.

The terms and rental rates of these leases are at market rental rates.

As of March 31, 2021, the minimum lease payments required under these leases totaled $ 3.0 million, which are due over the next 3.3 years.

As of June 30, 2021, the minimum lease payments required under these leases totaled $ 2.7 million, which are due over the next 3.0 years.

Fair Value Measurements

4 unchanged sentences

and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of March 31, 2021 and December 31, 2020, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs.

As of March 31, 2021 and December 31, 2020, the fair values of the Company’s long-term debt and finance lease obligations were based on Level 2 inputs.

The Company’s long-term debt was based on variable and fixed interest rates at March 31, 2021 and December 31, 2020, for new issues with similar remaining maturities, and approximated carrying value.

As of June 30, 2021 and December 31, 2020, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs.

As of June 30, 2021 and December 31, 2020, the fair values of the Company’s long-term debt and finance lease obligations were based on Level 2 inputs.

The Company’s long-term debt was based on variable and fixed interest rates at June 30, 2021 and December 31, 2020, for new issues with similar remaining maturities, and approximated carrying value.

In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying values of the Company’s finance lease obligations also approximated fair value.

5 unchanged sentences

Balance as of

March 31, 2021

June 30, 2021

Balance as of

7 unchanged sentences

Equipment Note 9 12/24/2019 3.01 % Semi-annual 7 3,774 4,031

29,420 29,420

Total debt 8,785 29,420

19 unchanged sentences

The Credit Agreement also contains covenants including limitations on asset sales, investments, indebtedness and liens.

The Company was in compliance with all of its financial covenants under the Credit Agreement as of March 31, 2021.

As of March 31, 2021, the Company had no debt outstanding under the Facility and letters of credit outstanding under the Facility of approximately $ 12.3 million, all of which was related to the Company's payment obligation under its insurance programs.

The Company was in compliance with all of its financial covenants under the Credit Agreement as of June 30, 2021.

As of June 30, 2021, the Company had no debt outstanding under the Facility and letters of credit outstanding under the Facility of approximately $ 12.3 million, which are almost entirely related to the Company's payment obligation under its insurance programs.

As of December 31, 2020, the Company had no debt outstanding under the Facility and letters of credit outstanding under the Facility of approximately $ 10.4 million, including $ 9.8 million related to the Company's payment obligation under its insurance programs and approximately $ 0.6 million related to contract performance obligations.

The Company had remaining deferred debt issuance costs totaling $ 1.1 million as of March 31, 2021, related to the line of credit.

The Company had remaining deferred debt issuance costs totaling $ 1.0 million as of June 30, 2021, related to the line of credit.

As permitted, debt issuance costs have been deferred and are presented as an asset within other assets, which is amortized as interest expense over the term of the line of credit.

3 unchanged sentences

Each Equipment Note executed under the Master Loan Agreements constitutes a separate, distinct and independent financing of equipment and a contractual obligation of the Company, which may contain prepayment clauses.

As of March 31, 2021, the Company had four Equipment Notes outstanding under the Master Loan Agreements that are collateralized by equipment and vehicles owned by the Company.

The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Notes as of March 31, 2021:

As of June 30, 2021, the Company had two Equipment Notes outstanding under the Master Loan Agreements that are collateralized by equipment and vehicles owned by the Company.

The following table sets forth our remaining principal payments for the Company’s outstanding Equipment Notes as of June 30, 2021:

(in thousands) Future

23 unchanged sentences

Additional information related to the Company’s market types is provided in Note 10–Segment Information.

The components of the Company’s revenue by contract type for the three months ended March 31, 2021 and 2020 were as follows:

Three months ended March 31, 2021

The components of the Company’s revenue by contract type for the three and six months ended June 30, 2021 and 2020 were as follows:

Three months ended June 30, 2021

T&D C&I Total

5 unchanged sentences

$ 326,831 100.0 % $ 322,742 100.0 % $ 649,573 100.0 %

Three months ended March 31, 2020

Three months ended June 30, 2020

T&D C&I Total

5 unchanged sentences

$ 276,759 100.0 % $ 236,292 100.0 % $ 513,051 100.0 %

The components of the Company’s revenue by market type for the three months ended March 31, 2021 and 2020 were as follows:

Three months ended March 31, 2021 Three months ended March 31, 2020

The components of the Company’s revenue by contract type for the six months ended June 30, 2021 and 2020 were as follows:

Six months ended June 30, 2021

T&D C&I Total

(dollars in thousands) Amount Percent Amount Percent Amount Percent

Fixed price $ 309,370 48.2 % $ 486,927 81.1 % $ 796,297 64.1 %

Unit price 175,222 27.3 36,914 6.2 212,136 17.1

T&E 143,377 22.3 32,520 5.4 175,897 14.2

Other 13,770 2.2 43,959 7.3 57,729 4.6

$ 641,739 100.0 % $ 600,320 100.0 % $ 1,242,059 100.0 %

Six months ended June 30, 2020

T&D C&I Total

(dollars in thousands) Amount Percent Amount Percent Amount Percent

Fixed price $ 247,352 46.1 % $ 406,201 82.0 % $ 653,553 63.4 %

Unit price 147,939 27.6 37,123 7.5 185,062 17.9

T&E 129,683 24.2 37,554 7.6 167,237 16.2

Other 11,055 2.1 14,614 2.9 25,669 2.5

$ 536,029 100.0 % $ 495,492 100.0 % $ 1,031,521 100.0 %

The components of the Company’s revenue by market type for the three months ended June 30, 2021 and 2020 were as follows:

Three months ended June 30, 2021 Three months ended June 30, 2020

(dollars in thousands) Amount Percent Segment Amount Percent Segment

4 unchanged sentences

Total revenue $ 649,573 100.0 % $ 513,051 100.0 %

The components of the Company’s revenue by market type for the six months ended June 30, 2021 and 2020 were as follows:

Six months ended June 30, 2021 Six months ended June 30, 2020

(dollars in thousands) Amount Percent Segment Amount Percent Segment

$ 422,173 34.0 % T&D $ 352,755 34.2 % T&D

219,566 17.7 T&D 183,274 17.8 T&D

Electrical construction

600,320 48.3 C&I 495,492 48.0 C&I

Total revenue $ 1,242,059 100.0 % $ 1,031,521 100.0 %

Remaining Performance Obligations

As of March 31, 2021, the Company had $ 1.53 billion of remaining performance obligations.

As of June 30, 2021, the Company had $ 1.45 billion of remaining performance obligations.

The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions.

The following table summarizes the amount of remaining performance obligations as of March 31, 2021 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will not be recognized within the next twelve months.

Remaining Performance Obligations at March 31, 2021

The following table summarizes the amount of remaining performance obligations as of June 30, 2021 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will not be recognized within the next twelve months.

Remaining Performance Obligations at June 30, 2021

(in thousands) Total Amount estimated to not be

7 unchanged sentences

“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

federal statutory tax rate was 21 % for each of the three months ended March 31, 2021 and 2020.

The Company’s effective tax rate for the three months ended March 31, 2021 was 26.2 % of pretax income compared to the effective tax rate for the three months ended March 31, 2020 of 29.1 %.

federal statutory tax rate was 21 % for each of the three and six months ended June 30, 2021 and 2020.

The Company’s effective tax rate for the three and six months ended June 30, 2021 was 27.0 % and 26.6 %, respectively, of pretax income compared to the effective tax rate for the three and six months ended June 30, 2020 of 27.1 % and 27.9 %, respectively.

The difference between the U.S.

federal statutory tax rate and the Company’s effective tax rate for the three months ended March 31, 2021 was primarily due to state income taxes and foreign earnings and the associated impact of the global intangible low tax income (“GILTI”) and other permanent difference items, partially offset by a favorable impact from stock compensation excess tax benefits.

federal statutory tax rate and the Company’s effective tax rate for the three and six months ended June 30, 2021 was primarily due to state income taxes and foreign earnings and the associated impact of the global intangible low tax income (“GILTI”) and other permanent difference items, partially offset by a favorable impact from stock compensation excess tax benefits.

The difference between the U.S.

federal statutory tax rate and the Company’s effective tax rate for the three months ended March 31, 2020, was primarily due to state income taxes and excess tax expense pertaining to the vesting of stock awards related to the Company’s stock compensation program along with foreign earnings and the associated impact of GILTI.

The Company had unrecognized tax benefits of approximately $ 0.4 million as of March 31, 2021 and December 31, 2020, respectively, which were included in other liabilities in the accompanying consolidated balance sheets.

federal statutory tax rate and the Company’s effective tax rate for the three and six months ended June 30, 2020, was primarily due to state income taxes and foreign earnings and the associated impact GILTI.

The Company had unrecognized tax benefits of approximately $ 0.5 million and $ 0.4 million as of June 30, 2021 and December 31, 2020, respectively, which were included in other liabilities in the accompanying consolidated balance sheets.

The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations.

The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was no t significant for the three months ended March 31, 2021 and 2020.

The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was no t significant for the three and six months ended June 30, 2021 and 2020.

The Company is subject to taxation in various jurisdictions.

4 unchanged sentences

Purchase Commitments

As of March 31, 2021, the Company had approximately $ 18.0 million in outstanding purchase orders for certain construction equipment, with cash payments scheduled to occur over the next nine months .

As of June 30, 2021, the Company had approximately $ 14.2 million in outstanding purchase orders for certain construction equipment, with cash payments scheduled to occur over the next six months .

Insurance and Claims Accruals

8 unchanged sentences

The Company has indemnified its sureties for any expenses paid out under these bonds.

As of March 31, 2021, an aggregate of approximately $ 1.20 billion in original face amount of bonds issued by the Company’s sureties were outstanding.

The Company estimated the remaining cost to complete these bonded projects was approximately $ 632.8 million as of March 31, 2021.

As of June 30, 2021, an aggregate of approximately $ 1.30 billion in original face amount of bonds issued by the Company’s sureties were outstanding.

The Company estimated the remaining cost to complete these bonded projects was approximately $ 605.4 million as of June 30, 2021.

From time to time, the Company guarantees the obligations of wholly owned subsidiaries, including obligations under certain contracts with customers, certain lease agreements, and, in some states, obligations in connection with obtaining contractors’ licenses.

21 unchanged sentences

federal income tax laws, (b) stock options that do not qualify as incentive stock options, (c) stock appreciation rights, (d) restricted stock awards, (e) restricted stock units, (f) performance share awards, (g) phantom stock units, (h) stock bonuses, (i) dividend equivalents, and (j) any combination of such grants.

The Company has outstanding grants of time-vested stock awards in the form of restricted stock units.

During the three months ended March 31, 2021, the Company granted time-vested stock awards covering 47,956 shares of common stock under the LTIP, which vest ratably over three years , at a weighted average grant date fair value of $ 66.38 .

During the three months ended March 31, 2021, time-vested stock awards covering 40,662 shares of common stock vested at a weighted average grant date fair value of $ 32.02 .

During the three months ended March 31, 2021, the Company granted 42,091 performance share awards under the LTIP at target, which will cliff vest, if earned, on December 31, 2023, at a weighted average grant date fair value of $ 80.11 .

The Company has outstanding grants of non-qualified stock options, time-vested stock awards in the form of restricted stock units and internal metric-based and market-based performance stock units.

During the six months ended June 30, 2021, the Company granted time-vested stock awards covering 57,196 shares of common stock under the LTIP, which vest ratably over three years for employee awards and after one year for non-employee director awards, at a weighted average grant date fair value of $ 66.80 .

During the six months ended June 30, 2021, time-vested stock awards covering 87,584 shares of common stock vested at a weighted average grant date fair value of $ 29.20 .

During the six months ended June 30, 2021, the Company granted 42,091 performance share awards under the LTIP at target, which will cliff vest, if earned, on December 31, 2023, at a weighted average grant date fair value of $ 80.11 .

The number of shares ultimately earned under a performance award may vary from zero to 200 % of the target shares granted, based upon the Company’s performance compared to certain metrics.

1 unchanged sentence

Performance awards granted cliff vest following the performance period if the stated performance targets and minimum service requirements are attained and are paid in shares of the Company’s common stock.

During the three months ended March 31, 2021, plan participants exercised options to purchase 5,102 shares of the Company’s common stock with a weighted average exercise price of $ 21.71 .

The Company recognizes stock-based compensation expense related to restricted stock awards and restricted stock units based on the grant date fair value, which was the closing price of the Company’s stock on the date of grant.

During the six months ended June 30, 2021, plan participants exercised options to purchase 18,640 shares of the Company’s common stock with a weighted average exercise price of $ 23.02 .

The Company recognizes stock-based compensation expense related to restricted stock units based on the grant date fair value, which was the closing price of the Company’s stock on the date of grant.

The fair value is expensed over the service period, which is generally three years .

22 unchanged sentences

Three months ended

June 30, Six months ended

(in thousands) 2021 2020 2021 2020

8 unchanged sentences

$ 29,665 $ 19,342 $ 57,076 $ 35,750

For the three months ended March 31, 2021 and 2020, contract revenues attributable to the Company’s Canadian operations were $ 17.7 million and $ 18.1 million, respectively, predominantly in the C&I segment.

Earnings Per Share

3 unchanged sentences

Three months ended

June 30, Six months ended

(in thousands, except per share data) 2021 2020 2021 2020

6 unchanged sentences

Diluted $ 1.24 $ 0.80 $ 2.41 $ 1.39

For the three months ended March 31, 2021 and 2020, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would either have been anti-dilutive or, for stock options, the exercise prices of those stock options were greater than the average market price of the Company’s common stock for the period.

For the three and six months ended June 30, 2021 and 2020, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would either have been anti-dilutive or, for stock options, the exercise prices of those stock options were greater than the average market price of the Company’s common stock for the period.

All of the Company’s unvested time-vested stock awards were included in the computation of weighted average dilutive securities.

1 unchanged sentence

Three months ended

June 30, Six months ended

(in thousands) 2021 2020 2021 2020

2 unchanged sentences

Subsequent Event

On April 13, 2021, the Company prepaid its $ 7.0 million Equipment Note 7 using cash on hand.

On July 2, 2021, the Company prepaid its $ 3.8 million Equipment Note 9 using cash on hand.

This prepayment included an insignificant amount of accrued interest and there was no associated prepayment penalty.

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