What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-10-29 compared with 2021-07-30 · 92 added, 88 removed, 193 unchanged (48% of the section changed)

33 unchanged sentences

We plan our operations and bidding activity with these factors in mind and they generally have not had a material adverse impact on the results of our operations in the past.

Second Quarter 2021 Recap and 2021 Outlook

In the quarter ended June 30, 2021, we recorded revenues of $145.9 million, of which $63.9 million was attributable to our marine segment and the remaining $81.9 million to our concrete segment.

Third Quarter 2021 Recap and 2021 Outlook

In the quarter ended September 30, 2021, we recorded revenues of $139.9 million, of which $54.7 million was attributable to our marine segment and the remaining $85.2 million to our concrete segment.

In addition, we ended the quarter with a consolidated backlog of $572.8 million.

Our revenues in the quarter decreased by 20.6% as compared with the comparable prior year period and we recorded net income of $3.5 million, as compared with net income of $2.0 million in the comparable prior year period.

Our revenues in the quarter decreased by 26.1% as compared with the comparable prior year period and we recorded a net loss of $10.2 million, as compared with net income of $11.8 million in the comparable prior year period.

Looking toward the balance of 2021, the Company continues to focus on developing opportunities across the infrastructure, industrial, and building sectors through organic growth, greenfield expansion, and strategic acquisition opportunities.

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Backlog as of the periods ended below are as follows (in millions):

September 30, 2021

June 30, 2021

2 unchanged sentences

September 30, 2020

June 30, 2020

Marine segment

Concrete segment

Although backlog increased during the current quarter, the primary driver related to weather impacts that negatively impacted the amount we were able to progress on our jobs in backlog.

The general trend of declining backlog over the past year is due in significant part to headwinds created by the COVID-19 pandemic in certain end market sectors, which has slowed the timing of project awards.

We, however, remain optimistic in our end-markets and in the opportunities that are emerging across our various market places as evidenced by

the $2.0 billion of quoted bids outstanding at quarter end, of which $30 million we are the apparent low bidder on or have been awarded contracts subsequent to the end of the quarter ended June 30, 2021.

The increase in backlog during the quarter is primarily driven by new jobs we won in the marine segment.

The general trend of declining backlog over the past year through June 2021 is due in significant part to headwinds created by the COVID-19 pandemic in certain end market sectors, which has slowed the timing of project awards.

We, however, remain optimistic in our end-markets and in the opportunities that are emerging across our various marketplaces as evidenced by the $2.0 billion of quoted bids outstanding at quarter end, of

which $103 million we are the apparent low bidder on or have been awarded contracts subsequent to the end of the quarter ended September 30, 2021.

These estimates are subject to fluctuations based upon the scope of services to be provided, as well as factors affecting the time required to complete the project.

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Delays in decisions on pending awards also have a negative impact on the timing and amount by which we are able to increase backlog.

Three months ended June 30, 2021, compared with three months June 30, 2020

Three months ended June 30,

Three months ended September 30, 2021, compared with three months ended September 30, 2020

Three months ended September 30,

(dollar amounts in thousands)

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Gain on disposal of assets, net

Operating income

Operating (loss) income

Other (expense) income:

5 unchanged sentences

Contract Revenues.

Contract revenues for the three months ended June 30, 2021 of $145.9 million decreased $37.8 million or 20.6% as compared to $183.7 million in the prior year period.

The decrease was primarily driven by a reduction in project activity compared to the prior year in the marine segment and decreased production volumes in the concrete segment due to weather related impacts.

Contract revenues for the three months ended September 30, 2021 of $139.9 million decreased $49.6 million or 26.1% as compared to $189.4 million in the prior year period.

The decrease was primarily driven by the timing and mix of several large marine projects that had driven activity in the prior year, which were not replicated or replaced in the current year quarter.

This decrease was partially offset by increased production volumes in our concrete segment due to an increase in activity during 2021, including on several larger jobs in the current year period as compared to the prior year period.

Gross Profit.

Gross profit was $12.3 million for the three months ended June 30, 2021, compared to $20.7 million in the prior year period, a decrease of $8.4 million or 40.7%.

Gross profit in the second quarter was 8.4% of total contract revenues as compared to 11.3% in the prior year period.

The decrease in gross profit dollars and percentage was driven by the decreased activity and volumes which negatively impacted revenue and contributed to an under recovery of indirect costs primarily related to decreased labor and equipment utilization.

Gross profit was $6.6 million for the three months ended September 30, 2021, compared to $22.5 million in the prior year period, a decrease of $15.9 million or 70.8%.

Gross profit in the third quarter was 4.7% of total contract revenues as compared to 11.9% in the prior year period.

The decrease in gross profit dollars and percentage was driven by the decreased activity and volumes in the marine segment which negatively impacted revenue and contributed to an under recovery of indirect costs primarily related to decreased labor and equipment utilization.

Decreased project performance in the concrete segment was driven by inefficiencies in executing work from COVID-19 and weather-related impacts, along with cost overruns in the current period on the completion of one project.

Selling, General and Administrative Expense.

Selling, general and administrative ("SG&A") expenses were $13.7 million for the three months ended June 30, 2021 compared to $16.5 million in the prior year period.

As a percentage of total contract revenues, SG&A expenses increased from 9.0% to 9.4%.

The decrease in SG&A dollars was driven primarily by a decrease in bonus expense as compared to the prior year period.

Selling, general and administrative ("SG&A") expenses were $15.7 million for the three months ended September 30, 2021 compared to $15.3 million in the prior year period, an increase of $0.5 million or 3.0%.

As a percentage of total contract revenues, SG&A expenses increased from 8.1% to 11.2%, primarily due to lower revenues in the current period.

The increase in SG&A dollars was driven primarily by an increase in ERP implementation expense, partially offset by a decrease in bonus expense as compared to the prior year period.

Gain on Disposal of Assets, net.

During the three months ended June 30, 2021 and 2020, we realized $8.1 million and $0.4 million, respectively, of net gains on disposal of assets.

Included in this amount is a net gain

of $6.8 million related to the sale of property in Tampa, Florida.

See Note 6 – Property and Equipment in this form 10-Q for a further description of the sale of property.

During the three months ended September 30, 2021 and 2020, we realized $0.8 million and $6.4 million, respectively, of net gains on disposal of assets.

Included in the prior year amount is a $2.9 million net gain on insurance recoveries.

Other Income, net of Expense.

Other expense primarily reflects interest on our borrowings, partially offset by interest income and non-operating gains or losses.

During the quarter ended June 30, 2021 we fully extinguished the term loan portion of our credit facility, in part using proceeds of the sale of property in Tampa, Florida.

The extinguishment of the term loan reduced the Company’s exposure to variability in interest rates and eliminated future loan amortization payment commitments.

Interest expense for the current quarter included $2.1 million related to the extinguishment of our term loan and related interest rate swaps.

Income Tax (Benefit) Expense.

We recorded tax benefit of $0.8 million in the three months ended June 30, 2021, compared to tax expense of $1.0 million in the prior year period.

Our effective tax rate for the three months ended June 30, 2021 was (29.8)%, which differs from the federal statutory rate of 21% primarily due to the movement in the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

Six months ended June 30, 2021, compared with six months June 30, 2020

Six months ended June 30,

Income Tax Expense.

We recorded tax expense of $1.0 million in the three months ended September 30, 2021, compared to tax expense of $0.3 million in the prior year period.

Our effective tax rate for the three months ended September 30, 2021 was (10.9)%, which differs from the federal statutory rate of 21% primarily due to the movement in the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

Nine months ended September 30, 2021, compared with nine months ended September 30, 2020

Nine months ended September 30,

(dollar amounts in thousands)

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Income before income taxes

Income tax (benefit) expense

Income tax expense

Contract Revenues.

Contract revenues for the six months ended June 30, 2021 of $299.2 million decreased $51.1 million or 14.6% as compared to $350.3 million in the prior year period.

The decrease was primarily driven by severe winter weather that shut down most of Texas for seven to ten days in February 2021, a reduction in project activity compared to the prior year in the marine segment and decreased production volumes in the concrete segment due to weather related impacts in the second quarter of 2021.

Contract revenues for the nine months ended September 30, 2021 of $439.1 million decreased $100.7 million or 18.7% as compared to $539.8 million in the prior year period.

The decrease was primarily driven by severe winter weather that shut down most of Texas for seven to ten days in February 2021, a reduction in project activity compared to the prior year in the marine segment and decreased project performance and margins in the concrete segment.

Gross Profit.

Gross profit was $27.8 million for the six months ended June 30, 2021, compared to $40.5 million in the prior year period, a decrease of $12.7 million or 31.5%.

Gross profit in the period was 9.3% of total contract revenues as compared to 11.6% in the prior year period.

Gross profit was $34.3 million for the nine months ended September 30, 2021, compared to $63.0 million in the prior year period, a decrease of $28.7 million or 45.5%.

Gross profit in the period was 7.8% of

total contract revenues as compared to 11.7% in the prior year period.

We also incurred decreased project performance in our concrete segment.

Selling, General and Administrative Expense.

Selling, general and administrative ("SG&A") expenses were $28.3 million for the six months ended June 30, 2021 compared to $32.4 million in the prior year period.

Selling, general and administrative ("SG&A") expenses were $44.1 million for the nine months ended September 30, 2021 compared to $47.7 million in the prior year period, a decrease of $3.6 million or 7.5%.

As a percentage of total contract revenues, SG&A expenses increased from 8.8% to 10.0%.

The decrease in SG&A dollars was driven by a decrease in the current year period related to bonus expense, business development pursuant to timing of project pursuits and awards, and travel related costs.

The decrease in SG&A dollars was driven by a decrease in the current year period related to bonus expense, business development costs pursuant to timing of project pursuits and awards and travel related costs.

Gain on Disposal of Assets, net.

During the six months ended June 30, 2021 and 2020, we realized $9.0 million and $1.4 million, respectively, of net gains on disposal of assets.

Included in this amount is a net gain of $6.8 million related to the sale of property in Tampa, Florida.

During the nine months ended September 30, 2021 and 2020, we realized $9.8 million and $7.7 million, respectively, of net gains on disposal of assets.

Included in the current year amount is a net gain of $6.7 million related to the sale of property in Tampa, Florida.

See Note 6 – Property and Equipment in this form 10-Q for a further description of the sale of property.

Included in the prior year amount is a $2.9 million net gain on insurance recoveries.

Other Income, net of Expense.

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Interest expense for the current year period included $2.1 million related to the extinguishment of our term loan and related interest rate swaps.

Income Tax (Benefit) Expense.

We recorded tax benefit of $0.7 million in the six months ended June 30, 2021, compared to tax expense of $1.4 million in the prior year period.

Our effective tax rate for the six months ended June 30, 2021 was (17.4)%, which differs from the federal statutory rate of 21% primarily due to the movement in the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

Income Tax Expense.

We recorded tax expense of $0.3 million in the nine months ended September 30, 2021, compared to tax expense of $1.7 million in the prior year period.

Our effective tax rate for the nine months ended September 30, 2021 was (6.3)%, which differs from the federal statutory rate of 21% primarily due to the movement in the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

Segment Results

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Specifically, certain corporate overhead costs previously recorded to the marine segment as part of operating income (loss) and allocated from the marine segment to the concrete segment below operating income in the other income (expense) line have been allocated from the marine segment to the concrete segment as part of the determination of operating income for each segment.

These corrections resulted in an offsetting change in operating income (loss) for each segment of $3.2 million for the three months ended June 30, 2020 and $2.9 million and $6.1 million for the six months ended June 30, 2021 and 2020, respectively.

Three months ended June 30, 2021 compared with three months ended June 30, 2020.

Three months ended June 30,

These corrections resulted in an offsetting change in operating income (loss) for each segment of $3.0 million for the three months ended September 30, 2020 and $2.9 million and $9.2 million for the nine months ended September 30, 2021 and 2020, respectively.

Three months ended September 30, 2021 compared with three months ended September 30, 2020.

Three months ended September 30,

(dollar amounts in thousands)

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Concrete segment total

Operating income (loss)

Operating (loss) income

Marine segment

1 unchanged sentence

Marine Segment

Revenues for our marine segment for the three months ended June 30, 2021 were $63.9 million compared to $91.7 million for the three months ended June 30, 2020, a decrease of $27.8 million, or 30.3%.

The decrease was primarily driven by a reduction in project activity compared to the prior year period.

Operating income for our marine segment for the three months ended June 30, 2021 was $8.6 million, compared to operating income of $3.8 million for the three months ended June 30, 2020, an increase of $4.8 million.

Excluding the impact of the sale of property in Tampa, Florida operating income was $1.8 million, compared to operating income of $3.8 million for the three months ended June 30, 2020, a decrease of $2.0 million, or 51.7%.

Revenues for our marine segment for the three months ended September 30, 2021 were $54.7 million compared to $112.9 million for the three months ended September 30, 2020, a decrease of $58.2 million, or 51.5%.

The decrease was primarily driven by the timing and mix of several large projects which had significant activity in the prior year but were not repeated or replaced in the current year.

Operating loss for our marine segment for the three months ended September 30, 2021 was $5.0 million, compared to operating income of $12.0 million for the three months ended September 30, 2020, a decrease of $17.0 million.

Excluding the net gain on insurance recoveries and the recovery on a disputed receivable in the prior year operating loss was $8.3 million for the three months ended September 30, 2020, a decrease of $13.2 million.

This decrease in operating income was primarily due to the decrease in revenue and related under recovery of indirect costs as a result of decreased labor and equipment utilization.

Concrete Segment

Revenues for our concrete segment for the three months ended June 30, 2021 were $81.9 million compared to $92.0 million for the three months ended June 30, 2021, a decrease of $10.1 million, or 10.9%.

This decrease resulted from decreased production volumes due to weather related impacts.

Operating loss for our concrete segment for the three months ended June 30, 2021 was $3.0 million, compared to operating income of $0.3 million for the three months ended June 30, 2020, a decrease of $3.3 million.

This decrease in operating income was primarily due to the aforementioned decreased production volumes due to weather related impacts.

Six months ended June 30, 2021 compared with six months ended June 30, 2020.

Six months ended June 30,

Revenues for our concrete segment for the three months ended September 30, 2021 were $85.2 million compared to $76.6 million for the three months ended September 30, 2021, an increase of $8.6 million, or 11.3%.

This increase was primarily driven by increased production volumes due to the timing and mix of projects including larger light commercial jobs that burned in the current year quarter.

Operating loss for our concrete segment for the three months ended September 30, 2021 was $3.8 million, compared to operating income of $1.1 million for the three months ended September 30, 2020, a decrease of $4.9 million.

This decrease in operating income was primarily due to decreased project performance and lower margins on several projects during the 2021 period.

Nine months ended September 30, 2021 compared with nine months ended September 30, 2020.

Nine months ended September 30,

(dollar amounts in thousands)

8 unchanged sentences

Concrete segment total

Operating income (loss)

Operating (loss) income

Marine segment

1 unchanged sentence

Marine Segment

Revenues for our marine segment for the six months ended June 30, 2021 were $136.1 million compared to $177.7 million for the six months ended June 30, 2020, a decrease of $41.6 million, or 23.4%.

Revenues for our marine segment for the nine months ended September 30, 2021 were $190.8 million compared to $290.5 million for the nine months ended September 30, 2020, a decrease of $99.7 million, or 34.3%.

The decrease was primarily attributable to the Texas winter storm in February 2021 and a reduction in project activity compared to the prior year period.

Operating loss for our marine segment for the six months ended June 30, 2021 was $11.5 million, compared to operating income of $9.6 million for the six months ended June 30, 2020, an increase of $1.9 million, or 19.8%.

Excluding the impact of the sale of property in Tampa, Florida operating income was $4.7 million, compared to operating income of $9.6 million for the six months ended June 30, 2020, a decrease of $4.9 million, or 51.0%.

This decrease in operating income was primarily due to the decrease in revenue and related under recovery of indirect costs as a result of decreased labor and equipment utilization.

Operating income for our marine segment for the nine months ended September 30, 2021 was $6.5 million, compared to operating income of $21.6 million for the nine months ended September 30, 2020, a decrease of $15.1 million.

Excluding the impact of the sale of property in Tampa, Florida in the current year and the net gain on insurance recoveries and the recovery on a disputed receivable in the prior year operating loss was $0.2 million for the nine months ended September 30, 2021, compared to operating income of $17.8 million for the nine months ended September 30, 2020, a decrease of $18.0 million.

This decrease in operating income was primarily due to the decrease in revenue noted above and related under recovery of indirect costs as a result of decreased labor and equipment utilization.

Concrete Segment

Revenues for our concrete segment for the six months ended June 30, 2021 were $163.1 million compared to $172.7 million for the six months ended June 30, 2021, a decrease of $9.6 million, or 5.5%.

This decrease resulted from decreased production volumes due to job delays caused by bad weather.

Operating loss for our concrete segment for the six months ended June 30, 2021 was $3.8 million, compared to $1.1 million for the six months ended June 30, 2020, an increase in operating loss of $2.7 million.

This increase in operating loss was primarily due to the aforementioned decreased production volumes due to weather related impacts.

Revenues for our concrete segment for the nine months ended September 30, 2021 were $248.3 million compared to $249.2 million for the nine months ended September 30, 2021, a decrease of $1.0 million, or 0.4%.

This decrease resulted from decreased production volumes in the current year period, in part due to job delays caused by bad weather.

Operating loss for our concrete segment for the nine months ended September 30, 2021 was $7.6 million, compared to $0.1 million for the nine months ended September 30, 2020, an increase in operating loss of $7.5 million.

This increase in operating loss was primarily due to the aforementioned decreased production volumes due to weather related impacts, decreased project performance and lower margins on several projects during the 2021 period.

Liquidity and Capital Resources

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Changes in working capital are normal within our business given the varying mix in size, scope and timing of delivery of our projects.

At June 30, 2021, our working capital was $60.8 million, as compared with $54.8 million at December 31, 2020.

As of June 30, 2021, we had unrestricted cash on hand of $2.4 million.

Our borrowing capacity at June 30, 2021 was approximately $42.3 million.

At September 30, 2021, our working capital was $49.2 million, as compared with $54.8 million at December 31, 2020.

As of September 30, 2021, we had unrestricted cash on hand of $0.9 million.

Our borrowing capacity at September 30, 2021 was approximately $29.3 million.

We expect to meet our future internal liquidity and working capital needs and maintain or replace our equipment fleet through capital expenditure purchases, leases and major repairs, from funds generated by our operating activities for at least the next 12 months.

We believe our cash position is adequate for our general business requirements discussed above and to service our debt.

The following table provides information regarding our cash flows and our capital expenditures for the three and six months ended June 30, 2021 and 2020:

The following table provides information regarding our cash flows and our capital expenditures for the three and nine months ended September 30, 2021 and 2020:

Three months ended

Six months ended

Nine months ended

September 30,

Adjustments to remove non-cash and non-operating items

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Change in operating assets and liabilities (working capital)

Cash flows provided by operating activities

Cash flows provided by (used in) investing activities

Cash flows used in financing activities

Cash flows (used in) provided by operating activities

Cash flows (used in) provided by investing activities

Cash flows provided by (used) in financing activities

Capital expenditures (included in investing activities above)

Operating Activities.

During the three months ended June 30, 2021, we generated approximately $2.2 million in cash from our operating activities.

The net cash inflow is comprised of $6.2 million of cash inflows from net income, after adjusting for non-cash items and $4.0 million of cash outflows related to changes in net working capital.

The changes in net working capital, which are reflected as changes in operating assets and liabilities in our Condensed Consolidated Statements of Cash Flows, were primarily driven by a $6.1 million outflow pursuant to the relative timing and significance of project progression and billings during the period, a $1.4 million decrease in operating lease liabilities during the period and $0.9 million of other outflows, partially offset by a $4.4 million inflow related to an increase in our net position of accounts receivable and accounts payable plus accrued liabilities during the period.

During the six months ended June 30, 2021, we generated approximately $11.3 million in cash from our operating activities.

During the three months ended September 30, 2021, we used approximately $7.0 million in cash in our operating activities.

The net cash outflow is comprised of $3.0 million of cash outflows from net loss, after adjusting for non-cash items and $4.0 million of cash outflows related to changes in net working capital.

The changes in net working capital, which are reflected as changes in operating assets and liabilities in our Condensed Consolidated Statements of Cash Flows, were primarily driven by a $8.1 million outflow related to a decrease in our net position of accounts receivable and accounts payable plus accrued liabilities during the period and a $1.2 million decrease in operating lease liabilities, partially offset by a $2.7 million inflow pursuant to the relative timing and significance of project progression and billings during the period and $2.6 million of other inflows.

During the nine months ended September 30, 2021, we generated approximately $4.2 million in cash from our operating activities.

The net cash inflow is comprised of $11.0 million of cash inflows from net income, after adjusting for non-cash items and $6.8 million of cash outflows related to changes in net working capital.

The changes in net working capital, which are reflected as changes in operating assets and liabilities in our

Condensed Consolidated Statements of Cash Flows, were primarily driven by a $3.9 million outflow related to a decrease in our net position of accounts receivable and accounts payable plus accrued liabilities during the period, a $2.6 million decrease in operating lease liabilities during the period and $0.6 million of other outflows, partially offset by a $4.4 million inflow pursuant to the relative timing and significance of project progression and billings during the period.

Condensed Consolidated Statements of Cash Flows, were primarily driven by a $12.0 million outflow related to a decrease in our net position of accounts receivable and accounts payable plus accrued liabilities during the period, a $3.8 million decrease in operating lease liabilities during the period, partially offset by a $7.1 million inflow pursuant to the relative timing and significance of project progression and billings during the period and $1.9 million of other inflows.

Investing Activities.

Capital asset additions and betterments to our fleet were $3.1 million in the three months ended June 30, 2021, as compared with $2.3 million in the three months ended June 30, 2020.

Proceeds from the sale of property and equipment were $22.8 in the three months ended June 30, 2021, as compared with $0.4 million in the three months ended June 30, 2020.

Capital asset additions and betterments to our fleet were $4.7 million in the six months ended June 30, 2021, as compared with $5.0 million in the six months ended June 30, 2020.

Proceeds from the sale of property and equipment were $24.7 in the six months ended June 30, 2021, as compared with $1.7 million in the six months ended June 30, 2020.

The increase in proceeds from the sale of property and equipment for the three and six months ended June 30, 2021 is primarily related to the sale of our property in Tampa, Florida.

Capital asset additions and betterments to our fleet were $6.9 million in the three months ended September 30, 2021, as compared with $4.4 million in the three months ended September 30, 2020.

Proceeds from the sale of property and equipment were $0.9 in the three months ended September 30, 2021, as compared with $4.1 million in the three months ended September 30, 2020.

Capital asset additions and betterments to our fleet were $11.6 million in the nine months ended September 30, 2021, as compared with $9.4 million in the nine months ended September 30, 2020.

Proceeds from the sale of property and equipment were $25.6 in the nine months ended September 30, 2021, as compared with $5.8 million in the nine months ended September 30, 2020.

The increase in proceeds from the sale of property and equipment for the nine months ended September 30, 2021 is primarily related to the sale of our property in Tampa, Florida.

Financing Activities.

During the three and six months ended June 30, 2021, we drew down $15.0 million and $20 million from our revolving line of credit and repaid $9 million and $19 million, respectively on our revolving line of credit.

During the three and nine months ended September 30, 2021, we drew down $13.0 million and $33 million, respectively from our revolving line of credit.

During the nine months ended September 30, 2021 we repaid $19 million on our revolving line of credit.

During the three months ended June 30, 2021 we fully extinguished the term loan portion of our Credit Facility, in part using proceeds from the sale of property in Tampa, Florida.

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Sources of Capital

As of June 30, 2021, our available sources of capital consist of the $50 million line of credit pursuant to our Credit Facility.

As of September 30, 2021, our available sources of capital consist of borrowing availability on our revolving line of credit of $29.3 million pursuant to our Credit Facility.

See Note 11 in the Notes to the Financial Statements (of this Form 10-Q) for further discussion on the Company’s Debt.

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Our ability to obtain surety bonds depends on our capitalization, working capital, past performance and external factors, including the capacity of the overall surety market.

At June 30, 2021, the capacity under our current bonding arrangement was at least $500 million, with approximately $135 million of projects being bonded.

At September 30, 2021, the capacity under our current bonding arrangement was at least $750 million, with approximately $85 million of projects being bonded.

We believe our strong balance sheet and working capital position will allow us to continue to access our bonding capacity.

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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 2. Management’s Discussion and Analysis