Dispositions

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]


3.			DISPOSITIONS

Myers Disposition—On November 30, 2022, we entered into an agreement (the “Myers Agreement”) and sold the Company’s 50% ownership interest in its partnership with Myers for $18,000 in cash. The Company received two payments in the first quarter of 2023 totaling $14,000 and in accordance with the Myers Agreement’s payment terms, two payments of $2,000 each are due by the end of 2025 and 2027. The remaining $4,000 in deferred payments receivable is recorded within “Other non-current assets, net” on our September 30, 2023 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 and treatment projects in order to reduce risk, to 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 from discontinued operations for the three and nine months ended September 30, 2022:


	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Revenues	$	63,902	$	157,001
Cost of revenues	(61,323)		(156,056)
Gross profit	2,579		945
General and administrative expense	(4,231)		(9,586)
Disposition related costs	(200)		(200)
Other operating income, net	63		3,059
Operating loss	(1,789)		(5,782)


Net interest income	3		67
Gain on extinguishment of debt	—		2,428


Pretax loss	(1,786)		(3,287)
Income tax benefit	611		1,539
Net loss from Discontinued Operations	$	(1,175)	$	(1,748)

The following table presents the cash flows from discontinued operations for the nine months ended September 30, 2022:


Net cash used in:	Nine Months Ended September 30, 2022
Operating activities of Discontinued Operations	$	(9,158)
Investing activities of Discontinued Operations	(688)
Financing activities of Discontinued Operations	(81)
Net change in cash, cash equivalents, and restricted cash of Discontinued Operations	$	(9,927)