Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. KSW INC (1004125) 10-Q published on Aug 14, 2012 at 8:43 am
Reporting Period: Jun 29, 2012
One component of the cost of revenues is steel products such as pipe, valves and fittings which the Company typically installs on its projects. The Company purchases steel products from local, national and international distributors. The Company includes allowances in its estimates for future escalations in steel prices due to market conditions. When market conditions indicated a price rise, the Company has in the past entered into agreements locking in prices with its suppliers to purchase steel products at fixed dollar amounts for extended time periods. When steel product prices do not fluctuate, the Company purchases these products on a price in effect basis.
Cash received from customers for six months ended June 30, 2012 increased 35%, as compared to the same period in 2011. Interest income increased in the six months ended June 30, 2012, as compared to the same quarter in 2011. These receipts were reduced by amounts paid to fund project costs, SG&A costs, interest expense and income taxes. Payments of corporate income taxes increased by $702,000 in the six months ended June 30, 2012, as compared to the same period in 2011. All of the above contributed to the decrease in cash provided by operations in six months ended June 30, 2012, as compared to the same period in 2011.
The Company purchased property and equipment totaling $55,000 and $1,000 and marketable securities totaling $14,000 and $528,000 during the six months ended June 30, 2012 and 2011, respectively. In addition, the Company’s unconsolidated joint venture repaid advances totaling $41,000 during the six months ended June 30, 2012. During the six months ended June 30, 2011, the Company advanced its unconsolidated joint venture for general construction costs totaling $213,000, which was repaid during July 2011. During the six months ended June 30, 2012, the Company received proceeds of $11,000 related to the sale of property and equipment.
The Company presents excess tax benefits resulting from the exercise of stock options as part of cash flows from financing activities. Excess tax benefits represent tax benefits related to exercised options in excess of the associated deferred tax assets for such options. For the six months ended June 30, 2012, $13,000 of excess tax benefits have been classified as an operating cash outflow and a financing cash inflow.
Certain statements contained in this report are not historical facts and constitute “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward looking statements generally can be identified as statements that include words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “foresee”, “likely”, “will” or other similar words or phrases. Such forward-looking statements concerning management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition, and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. This document describes factors that could cause actual results to differ materially from expectations of the Company. All written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are qualified in their entirety by such factors. Such risks, uncertainties, and other important factors include, among others: inability to obtain bonding, inability to retain senior management, low labor productivity and shortages of skilled labor, a rise in the price of steel products, economic downturn, cancellation, suspension or delay of projects by customers, reliance on certain customers, competition, inflation, the adverse effect of terrorist concerns and activities on public budgets and insurance costs, the unavailability of private funds for construction, and other various matters, many of which are beyond the Company’s control and other factors as are described in “ Part I, Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. Forward-looking statements speak only as of the date of the document in which they are made. Other than required by applicable law, the Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements to reflect any changes in the Company ’s expectations or any changes in events, conditions or circumstances on which the forward-looking statements are based.