Dispositions

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]


4.			DISPOSITIONS

Myers Disposition—On November 30, 2022, we entered into an agreement (the “Agreement”) and sold the Company’s 50% ownership interest in its partnership with Myers & Sons Construction L.P. (“Myers”) for $18,000 in cash. In accordance with the Agreement’s payment terms, the Company is to receive $12,000 in January of 2023 and a series of three $2,000 payments due by various dates in 2023, 2025 and 2027. The deferred payments receivable are recorded within “Other current assets” and “Other non-current assets, net” on our December 31, 2022 Consolidated Balance Sheet at present value calculated using an implicit interest rate of 5.75%. The disposition is consistent with the Company’s strategic shift to reduce its portfolio of low-bid heavy highway and water containment & treatment projects in order to reduce risk and improve the Company’s margins, and to focus on its strategic geographies outside of California. The disposition represented a strategic shift that had a

major effect on our operations and consolidated financial results, and accordingly, the historical results of Myers have been presented as discontinued operations in our Consolidated Statements of Operations and Consolidated Balance Sheets. Prior to being disclosed as a discontinued operation, the results of Myers were included within our Transportation Solutions segment.

The following table presents the components of net income (loss) from discontinued operations. The year ended December 31, 2022 represents the period ending November 30, 2022, the date of disposition.


	Years Ended December 31,
	2022		2021		2020
Revenues	$	196,134	$	167,392	$	200,674
Cost of revenues	(192,886)		(156,167)		(188,935)
Gross profit	3,248		11,225		11,739
General and administrative expense	(13,751)		(9,353)		(7,107)

Other operating income (expense), net	3,158		(1,596)		(2,355)
Operating (loss) income	(7,345)		276		2,277


Net interest income (expense)	69		(30)		(33)
Gain on extinguishment of debt	2,428		968		—
Pretax (loss) income	(4,848)		1,214		2,244
Pretax gain on disposition	16,687		—		—
Total pretax income from Discontinued Operations	11,839		1,214		2,244
Income tax expense	(2,095)		(26)		(3,061)
Net income (loss) from Discontinued Operations	$	9,744	$	1,188	$	(817)

The following table presents the carrying amounts of major classes of assets and liabilities that were included in discontinued operations at November 30, 2022 and December 31, 2021. There were no assets or liabilities classified as discontinued operations at December 31, 2022.


	November 30, 2022		December 31, 2021
Cash and cash equivalents	$	11,957	$	20,895
Accounts receivable	30,862		31,968
Contract assets	12,780		7,514
Receivables from and equity in construction joint ventures	7,808		7,057
Other current assets	4,596		4,452
Current assets of Discontinued Operations	$	68,003	$	71,886

Property and equipment, net	$	9,720	$	10,420
Operating lease right-of-use assets	5,551		5,047
Goodwill	1,501		1,501
Deferred tax asset	3,435		3,778
Non-current assets of Discontinued Operations	$	20,207	$	20,746

Accounts payable	$	37,752	$	32,236
Contract liabilities	5,600		9,260
Current maturities of long-term debt	—		4,857
Current portion of long-term lease obligations	2,555		2,284
Accrued compensation	3,261		2,388
Other current liabilities	767		889
Current liabilities of Discontinued Operations	$	49,935	$	51,914

Long-term debt	$	—	$	81
Long-term lease obligations	2,997		2,763
Members’ interest subject to mandatory redemption and undistributed earnings	35,063		35,793
Long-term liabilities of Discontinued Operations	$	38,060	$	38,637

The following table presents the cash flows from discontinued operations. The year ended December 31, 2022 represents the period ending November 30, 2022, the date of disposition.


	Years Ended December 31,
	2022		2021		2020
Net cash provided by (used in):
Operating activities of Discontinued Operations	$	(7,334)	$	11,384	$	10,313
Investing activities of Discontinued Operations	(723)		(5,964)		(1,908)
Financing activities of Discontinued Operations	(81)		(1,908)		6,805
Net change in cash, cash equivalents, and restricted cash of Discontinued Operations	$	(8,138)	$	3,512	$	15,210