Q3 2020 Goldfield Corp Earnings Call
For your question.
We.
We've thought about it we continue to address it and.
Consider it going forward, but it is not something we're ready to act on it this time.
Okay.
That's down 10% today, clearly investors don't know or understand that you know I guess, there was a $1.4 million payout.
That hit the expense line and basically took your earnings per share I guess, maybe down from seven or eight times down to four cents.
And the stop selling off the cost of it.
What are you doing to get analyst coverage for the stock. So that you know the company can be more understood and represented to Wall Street investors.
Yes.
Thank you.
Well, we're reaching out to some where we're taking taking calls from some.
So many analysts, but we just haven't been picked up yet.
Okay [noise].
The company seems to be.
Being one more like a private company on a public company. There's a lot of expenses that go with being a public company as you know me an accountant.
You have a lot of listing fees have a lot of extra accounting work.
You know are there any plans to take the company private.
Hi.
We so we don't make any I don't have any comment on that at this time, we just company policy, we don't comment on it.
Okay.
Usually when companies enter the Russell 2000, they get more volume more people understand that your company just miss the threshold I guess last may.
Every year they readjust the Russell 2000, yes.
Your market cap is just a little below.
Where it would take to enter but have to stop gets up to five and a half $6. It would enter the Russell 2000 next year in June.
Clearly the company is growing you're showing 11% growth, obviously real estate will improve probably next year when the chronic viruses over.
Are there any big contracts that you're bidding on that possibly could get investor interest to get the stock where it needs to be to get into the Russell 2000, and have proper exposure to wall Street.
Yes, we were continues a bit Oh, hey, the rebid and large projects you know, Steve we said in her comments that where most of our projects are small to medium size.
Size 'em, we are actively involved in the lords. Some large projects that you are through the growth that we're trying to get.
And to that threshold are you talking about the Russell indexes here to get more institutional investors involved in our inner company, but there is a lot of building going on 'cause it hasn't really affect the data that we've seen from a from our perspective.
Okay. So are there any contract announcements that we could be looking for in the near future.
At this time, we we Oh, we cannot disclose that.
Okay.
As I mentioned.
I'm sorry.
No go ahead Steve.
Now you you you was about to say something I apologize I cut you off.
No no I mean, it's been significant contracts. We had you know we have a history of ansible announcement that down.
Okay, you mentioned to renew a m. essays since September thirtyth.
Are those new or their renewed.
Those were renewals.
Okay are there any potential future m. assays that could be.
Increases rather than just renewals.
Yes, we're working on some right now.
Okay and the two that were renewed those old I guess be additive to the backlog now that they've been renewed is that how the system works.
Yes, Sir.
Are you still on the you know the experience experience with the customer in the run rate.
And you know we're work than we have in hand, so those will be accretive in the future.
And the Lake City Im going to say, obviously matters to you know we have a.
You know three year five year seven year in assays with renewal periods.
Yeah, clearly investors see the backlog shrinking they oh, we got to get out of the stock if they see it increase that they're missing the story so when you get renewals.
Backlog increases as you're aware as you use it up each quarter backlog drops until it's ready to go.
Exactly where we could run now we couldn't feel better about our backlog and the the success rate we've had on the renewals.
Oh.
Okay, and do you see the real estate increasing next year.
In sales.
Real estate, it's going to be some activity next year, but we're kicking off a new project and.
That revenue should come in and 2022.
Okay.
And there was a $1.4 million charge for the quarter.
If you back that out would.
Uh huh.
That would would that pretty much.
Have been pure profit have that expense not hit though.
Yes Jana.
Oh, absolutely yes, Sir.
Okay. So we don't expect to see that again next year or next quarter.
No Sir that was that was completed.
Okay and one final question.
Going forward is there anything you can do on the corporate expense side that can keep it tighter so that when.
Revenues increase you know, we see an increase in income.
We currently run a lean operation on the corporate side, but we're always looking or looking at our expenses and seeing where we can we can reduce.
Okay. Thank you gentlemen.
Thank you Steve.
Thank you. Our next question comes from James Devlin with Henley and company. Please proceed with your question.
Yeah, Hey, good morning, guys. Thanks for your time.
Uh huh.
So.
Ill Macroeconomically, obviously, you're right and customers are some of the largest electric utility corporations in the southeastern United States right.
Correct. So.
Within like maybe the last 90 to 120 days we've.
We have seen Berkshire Hathaway by Dominion resources, there's like a story a day.
On my New scroll here about Florida power, Georgia power, Duke energy acquisitions potential acquisitions room renovations.
But all of those companies.
Had their capex their capital expenditure budgets way up there I think they're giving two and three year Capex kinda guidance to wall Street and the numbers are tilting.
The bottom line is the utilities are it looks like they're going to be spending a significant amount of money in the near future <unk>, but at least the next several years.
And I believe Florida power, Georgia power and Duke Energy are certainly clients of power Corporation of America right.
Yes or okay.
Okay.
If they're spending more money.
There's not a direct corollary, but that's certainly good for your business trends looking forward. If we follow their capex spending patterns should is there a delay but direct corollary to how your business will do.
You know.
Following.
Where are your clients or are announcing large expenditures moving forward.
Yes, there is money, but what you're seeing in red It provides additional opportunities for us as well so we're well aware of.
Water capital expenditures or okay.
Okay and then if you're following that then obviously you'll understand.
Oh.
I'm just trying to frame it.
That a large amount of the Capex, that's got to come flooding into the system.
He's got to be aimed at both solar and wind farms.
And you guys do outsourced you know kind of electrical contracting civil engineering work.
Solar farms are great wind farms are great. How do you tie them to the grid do you guys benefit would they would they hire you guys to wire up a solar farm or a wind farm and tied into the grid.
Yes, Sir we have several projects with that that same situation right now are in there most of our divisions across the company okay.
Okay, and then on the M&A is it shouldn't.
Go ahead, I'm, sorry, it should it should increase value.
Okay. So you guys would be players then in solar and wind farms.
Yes, Sir we are as we speak and we and we have in the past.
Back in 2012, we were a successful bidder on a 110 mile project for Chris in Texas. It was a 50 to 52 million dollar project that we've successfully completed.
Okay and.
I mean, they get all obviously the shiny object of the day is this presidential election.
Well see I hopefully in the next days or weeks or whatever we can all move on but.
We have zero interest rates as a nation pretty much.
And a big you know about the only thing that Democrats and Republicans both agree upon it.
Just to kick start the economy. The U.S. is gonna need some kind of an infrastructure spending bill.
And we're looking at trillions of dollars. It's you know probably the largest capex expenditure on infrastructure. The U.S. has ever made potentially.
Where would you guys benefit there.
There's a lot of talk it from the Biden cap about the smart grid can you explain to US how you guys would benefit there.
<unk>.
We're we're exploring those opportunities are as they're presented themselves and we will definitely try to capitalize on any that does lays in front of us.
Okay.
And then.
I had done a call with Ah John.
Super Nice guidance known them for years.
And.
And he had talked about using valve stir up in Texas, one of your lay down yards I guess.
As an opportunity to leverage into Kentucky, and some other states kind of more in the Midwest.
Or do you guys still pursue that have you won any business. There I know John said that Kentucky. He was pretty optimistic about are there any other states.
So you've got your North Korea, I guess, North Carolina, South Carolina, Georgia, Florida, Texas markets have you guys been actively looking at any other markets to expand into or have you been winning any business in any additional states that we may not be aware of.
Yes are we have an office in Kentucky. There is opened the doors up for transmission and distribution and some foundation work over there. We've explained it out of the basket up office in Texas up into Oklahoma, Arkansas, Louisiana in Kansas.
Okay and are we seeing that in the balance sheet now or are those more growth initiatives down the road, how should we look at those new markets.
Yes. These are active projects.
And and <unk>. These are one offs or you guys think that you'll be able to compete in those markets or you know for the longer term.
Definitely you're continuing to pursue those markets aggressively and continue to grow but we are we're very pleased with what we're seeing right now.
Okay, Great and a there was a previous caller that had mentioned.
Part of explaining the investment to potential investors and investors that we have.
Is that it's not a gold company. So I you know if I could just throw my own two cents and if there is any way to kind of get rid of the stigma of goldfield being a gold company.
It would certainly clear up the story and what Wall Street focus on you know what this company is then it'll get you guys a better EBITDA valuation.
Even some of the statistical data on the Internet.
Discusses like ER.
Company profile Kinda labels. This company as a gold company and tells you. The story about hundreds of years of publicly traded as a gold company and then like in the last paragraph Oh, yeah, they're involved in electrical contractor. So I kind of share the thought process of the previous caller I just thought I'd throw.
That and.
You know your gross margins are doing really really well and you know.
You guys seem to have the the business.
ER in good stead or from a margin perspective, then you don't wish you luck in in these new markets and any growth opportunities and I guess, we're all a written for an infrastructure package. So I want to appreciate your guys' time and thank you for taking my calls.
But my question. Thanks.
All right. Thank you so much and we will continue to disclose their names situation with with the board I think it would be really clear up the story and give you guys a fresh start to get the word out and kinda looking you know the company has got a lot of lineage and certainly John's DNA is all over the company.
But you know now what's your you know the the show must go on shall they say and you guys are now the stewards of the ship and get help sometimes you just put a new code in a name change on the ship and get I'll. Let you guys have at it you know.
Yes, sure I understood all right. Thank you guys.
Thank you.
Thank you.
Our next question comes from George Gasper, a private Investor. Please proceed with your question.
Thanks, Good morning to everyone there.
Ah you weren't born George and good morning, good morning.
Just a few follow ups here and I I put a.
Oh, so confirm a strong feeling that the company should oh after its name into identification of the threats as a company is.
I think that would be a real smart move at the.
In terms of.
The sitterly payment going out from the company was there no insurance on John's life that was payable directly to the company.
Yes that is correct George as I stated earlier, there was not a policy on John's wife, two pages a company.
I see so it was a straight Phil what went out was and a conditional.
Understanding that was.
On the record that it.
His passing that there was a payment to be made to the chief Executive officer is that right.
Yes, it was.
It was based on his employment agreement there was a death benefit and then there was.
Another problem.
Okay.
Okay, all right thanks for that.
The.
Long term debt change out.
Going forward it looks like there is several million that may be coming due in the next a year how are you.
You are you able to do you do you see yourself being able to rotate some of this long term debt into a potentially a lower end.
Interest rate.
Uh huh.
That's that's their plan, we look at it and you know I rate is extremely low.
So were you know as soon as it was mentioned earlier basically interest rates.
Zero nationwide. So it's a low debt, but yes, we do have one coming up and we did.
We did as we noted we had a subsequent event that we you know $5 million of our working capital.
Subsequent to September Thirtyth.
I see okay married it actually drove her current portion of long term debt.
I got you, Okay all right.
And then in terms of some of that.
Trinity's that can move the company forward in terms of business.
Yeah, how do you view the electric substation.
Business at this point in time.
Is addus is there opportunities it looks like because a lot of the power companies, which were have already been mentioned in the <unk> and this is a question and answer period.
Our teams seem to be going toward expansion.
Are there some areas of activity.
That you could expand into TEP bryden, what you're doing in general.
Right straight across the board from.
The southeast into Texas.
George We are we have expanded you know and we will continue to expand reason or are you. If we get a new customer existing substation, we're trying to leverage that relationship we build them to open the door for your cross selling our different service lines in the transmission.
Distribution.
We're seeing a strong results in Texas and the mid Atlantic regions.
Oh, Okay, all right well that that's that's good to hear and ER and this I was encouraged to hear that you're you're kinda back stepping in the move to Texas, That's true and then to Kentucky that you sound like you're back stepping so that you can get into the Oklahoma.
In the area Passably, Nebraska, where that Oklahoma area. It looks like it needs. It <unk>. It seems like it would offer an excellent opportunity for you all to try to capture more business. There I hope that you're able to do that.
Yes are we actually have an active project its fans between Oklahoma and Arkansas right. Now. So we're pleased with how it's going and Oh, we're seeing continued bidding activity in those areas as well.
Okay, all right, Andy and then finally, a in terms of the.
The look ahead here just in this quarter that were now in which where you're just through a one month of the quarter, but can.
Can you can you give us any sense on how you see that business opportunity for this quarter versus say the third quarter.
The the Texas and there is no longer focused so we're pleased with the results are going well no.
Okay. Your comparison to Q4 of 20, Oh, it'll be difficult Tonight thing because they just had some very strong project closeouts that right now we're not expecting them in Q4 to one but.
So we're happy with the results we are seeing and you will continue to make tweaks as we go along so we're very pleased with them and you can see in the in the filings that were we've turned the corner and we're going in the wrong direction now in Texas.
Okay. So if I could just squeeze in one more to add on the real estate side, Yeah, Nick Florida continues to have a pretty good real estate American general with more people moving south.
If a new York and wherever.
It would seem like there's some <unk> so from real opportunity for you or have you changed your strategy on what your truck build in terms of real estate or.
Or or let's say grow the area that you are willing to do in terms of.
Okay, Florida.
No we're not we're not changing our strategy at this time I mean ER.
We have invested in some properties, we believe will drive value for shareholders and we have some projects coming in and right.
We like to drive additional growth in that area.
We have a new project coming out of the ground. So if you're looking for some real estate in foreign countries. Okay.
Okay, Okay, and just a in a summation comment I wish you guys. A lot of success you have you have a tremendous following in terms of shareholder interest and I think they're enthusiastic.
They they want go feel to be a very successful company a lot of us have been in it for a long time and I and I am sure. You are very much aware of that and we're behind you a 100% and hope you're going to be very successful going forward. Thank you.
Thank you George Thank you George we appreciate your support right.
Thank you.
Our next question comes from Bud Leedom, a private Investor. Please proceed with your question.
Hi, Thanks for taking my question.
You know you kind of looking at the the long range gross margin going trending back several years.
You guys are touching on the the 30% range and just to try to understand the business. Today, you know, even though your margins are improving they're still down pretty significantly from where they were as they had contracts just become more competitive out there or is that a scope of work issue and based on that question.
Or do you believe gross margins can trend back to and in the future here.
[laughter] [laughter].
Thank you Brian.
You know, we we kindly for who've been saying in the last few years, so mid to high teens Ah, Yes, we have some high margins a couple of years ago, but sometimes you just how do you see this one out of the bar you you hit one well so.
Okay. That's sometimes there's just sort of margins are minimal it Jason giambi.
But in the <unk> the <unk> Mark.
Mark This is very competitive and it varies from region to region, you got a lot of mom and Pops that don't have the overhead and safety on some of these smaller catalogs, but you know that we have and that's why some of our most of our customers are some of the largest in the country, but isn't the smaller.
Aspect of things and it is very competitive.
Your across are crossing the worst area I would say would be taxes compared to the mid Atlantic and southeast region.
Okay, Okay and I.
I think part of the confusion that you know maybe or at least you know looking at the story and trying to reconcile a pretty significant increase in backlog versus the revenue growth you. You've experienced you know I know some of these are three to seven year M.S. days.
But perhaps you can.
Kinda discuss the gives and takes around seen 100% jump in backlog versus you know revenue growth. It's in the 7% to 8% range, albeit if you strip out the real estate were somewhere in the 11% to 12% range, but is there any way to look at backlog.
Getting and translate that into the future in terms of how we might be able to extrapolate out revenue growth based on your increases in backlog.
Yeah, it's hard to extrapolate amount <unk> on a full backlog or you know because of that backlog as I said they can go out many years. So when you when you when you get into it but I see.
It's a seven year in lets say you know that add substantial backlog, it's not coming into revenue for a period of time.
Got it I guess I could say is maybe better to focus on the 12 month upcoming backlog that's going to you know would you be coming into play in revenue in the next 12 months and I didn't know I made some comments on that in my opening remarks.
Now we see a you know we usually see that and that's due to that short term nature of the of the jobs you know from.
[laughter] bidding New award the execution completion, or it's just a short period of time.
Okay understood and then just eat concerning the role of CEO you. Both plan to continue being co Ceos or is there a a a search in place to name a new CEO going forward. Maybe you can just articulate what the plans are around that.
Well yeah. Thank you I mean, the the board I can say the boards had a very active dialogue on the structure of the.
Permanent leadership, you know, we we understand that's a question to many of our stakeholders are better.
Through our customers even employees so.
So we tried to be as transparent as possible, but we can't comment on specifics at.
At this point, but we can assure you they recognize the importance of this matter.
Okay. Thank you.
Thank you. Thank you.
Our next question comes from Kurt Caramanidis with Carl M. Hennig incorporated. Please proceed with your question.
Hi, Thanks for taking my question.
I'm getting a little more specific on the backlog so I totally get what you're saying on the 12 month backlog and usually you significantly exceed that.
So we're running at a 200 million clip.
Clip or slightly under.
Backlog at 151, it was at 178, so that would indicate that.
If we're going to continue to be significantly above the 12 month backlog, we should be looking forward to quite a bit more in the quarters ahead in excess of $50 million or something's, not adding up with this amount that you say, we're going to do over the one year and we're we're slightly over.
The one you are on a pace, but not to the extent that you had been in the past.
Your question Kirk Oh, <unk> main thing I want to say is you know what I'm talking about history, but I'm I'm I'm, referring to the back numbers and where they turned out but you know we have a mix of projects in backlog that can cause fluctuations.
We have some longer longer projects in backlog currently you know as it is.
Okay. So both said that most of the jobs are short shorter nature, but we do have some some longer projects.
Some of those and Kurt.
I heard some of the project. So we have they're not related to I must say, they're non and let's say he is bid work. There is no were as far as the revenue goes as his nerves awarded started and completed.
Within a 12 month timeframe and again, we feel very strong about our backlog in the opportunities to provide.
Right, but I mean should we based on history should we expect to start seeing 50 plus million per quarter or what the backlog going forward.
We're trying to we're trying to get there, but I'm not going to.
I'm not going to make that projection I'm sorry.
Okay, and then Oh, the one thing I was pleased to see was more smaller projects. So back in the day or when you have the higher margins. It was due to smaller projects bigger projects I assume you have lower margin and you're saying you're seeing a lot of.
Activity in the small maybe small to medium size is that still true that that could help your margins with a.
A small to medium size projects.
No.
There's the bigger margins on the large projects in the past your book or near where the competitive market, though we see you are seeing out there in different regions of our business you know some of those morgans or have declined but we expect to your the number of smaller.
We are SaaS projects to to be another though you're going forward and you are with our mortgages to boost constantly in the.
Mid to high teens is what we're what we're shooting for right now.
Okay, and then a Texas did it have a hiccup in Q3, that's resolved for Q4 or how can you elaborate on that.
We've done that was a shift in and revenue to storm work that's classified another in the queue.
So.
I was wrong no. We've moved crews perform work on senses overeager, Louisiana during the third quarter.
So fourth quarter or they will be back to normal.
HM [laughter], Jason said earlier, it's whether they needed a you know a we've been called it's just how long duration oh the customer needs.
Well, there's still more to some work, but but your question was are we back to normal or are we just we just do want to point out that we had some significant closeouts in the fourth quarter 2019, so it's probably going to be hard to massive numbers.
That was mainly margins right, yeah, I get that but as far as work flow you're back because somewhat normal I think you had.
Kind of a onetime margin bump last year in Q4, but as far as volume is that still.
Back to normal.
We feel good about the volume we're seeing out in front of us right now.
Okay.
Thank you very much.
I concur.
Thank you.
Our next question comes from Sam Rebotsky with SCR asset management. Please proceed with your question yes.
Tell me the.
The relationship with the bank has that changed or are you taking a stronger involvement is there any more I need a funding it.
With the changes of John gone.
Okay.
Uh huh.
No Sam Ive always maintained a strong relationship with the bank I mean, John Who's involved but oh.
I was there a significant part of that relationship and continue to be we're working the same banker for many years BBSI now through is as they say.
Yeah, well, that's good and there's been one thing I didn't hear Kurts question about the storm damage was there.
Lets work on more work or did we bid for more work on the storm damage or because they seem to be so many storms I thought there would have been more money for that.
Did you win just to answer the question about was wasn't sure whether that was dealt with.
Well, we sold more storm work in the comparable quarter, a Wisconsin sworn crews out there.
Yeah, that's going on but no it depends on the need and the material knows how long the direction that we're there to the near the customer needs and so on but we are still active on that right now and we.
Well, we're we're pleased with the relationships, we build and they just don't work near the hopefully open doors or force there as well.
Okay, great well, Stephen Jason I'd like to continue the conversation later or when you are available off Brian I think drew youve done a wonderful job the crime. The company doesn't deal just would one bergersen, although John was always the.
The name and the face that everybody saw and there that that's why the market reacted the way it did and hopefully we could do something that could continue in improvement and to understand what gold field really is so good luck.
Look forward to talking to you later or at another time. Thank you.
Thank you Sam Thank you Sam.
Thank you.
Our next question comes from Stephen Graham Center with a B.L. investments. Please proceed with your question.
Did you tell us anything about the length and size of the two m. essays he resigned after September thirtyth.
You mean, just second on that one.
There there are two years in length.
Well, it's over two years, but that's almost two years and Oh, you're we're pleased with the renewals of those and I believe working on pursuing others.
Okay. So I guess is there any chance of renewing or signing any additional M assays between now and the end of the year.
Yes.
Well, we don't comment but were working on some.
Okay.
And.
Well the way the questions were asked it was hard to understand so are you currently doing any storm restoration work from the Hurricanes that hit Louisiana.
Yes.
Yes, we have a there's a movement from Louisiana to Alabama, and the Mississippi and due to the recent gruesome.
But overall not a significant impact.
Okay, and then starting in that.
As we've said before we're not storm chasers I'll, just remind you that it we've got to be released from our current customers, but we capitalize only when we can.
Okay.
And looking at the 2021 over 2020.
When the new when the new M. essays are signed how long before they go into a faster how long before you start generating revenue from them.
<unk>.
Basically it means a nice isn't immediately I mean it just comes in renewals is just to continue as we go.
No we don't stop and you know and on the new ones its its really immediately.
Okay.
He said on last quarter's call. We said on the last quarter's call when we renewed one of the Carolinas.
It was just seems slow start to.
Two in India for first quarter, but it's been kicking off pretty well and I think we've had three three sequential quarters of increasing revenues from that renewal.
Earlier in the year.
Okay, and you signed a big contract last year for like 50 million and I think John mentioned it might starting a second quarter of 2020.
And.
Where's the status of the the big contract that you signed is on something like a 50 million dollar contract.
Yeah, but most of those projects are currently ongoing we sent a press release I believe is or who are like 2019 December.
If you go back to the press release.
Probably a lot more information, but both of those are actively ongoing role and continue on into 21, no. Jason is run as a major project from your major project program.
Okay, Oh, thank you gentlemen.
Thank you sure.
Thank you.
The next question comes from Steve Emerson with Emerson Investment Group. Please proceed with your question.
Hi, Ken or whatever.
While we see.
A number of shareholder friendly actions.
Better mhm and experiments have.
The obvious to everybody on this call.
And [laughter] only.
Sell off real estate per architect perhaps back to the powerful [noise].
Right. Okay. One quick has already been refer to.
Hey, corporate Powerpoint presentation, which is quite yeah Hello.
Oh.
And are there.
Public currently parents asked her to Petro one pass care.
Thank you.
Thank you Steve.
First your first question, we just I mean, we don't have any plans to sell our realistic business as we said before we believe we're in a good position to capitalize on those investments and and they've been profitable in past. They are real estates has been lumpy as we all know because we just haven't gone into it.
It's such a large manner that we have a.
Large project inventory.
Rolling off all the time so.
That's where rental on that so and we'll we'll take under consideration your other comments. Thank you.
Are we waived never tell your around <unk> or tell a board complete it so what we see over if you.
What what has to happen before we start getting right. These are fairly low hanging fruit shareholder friendly actions.
Okay divorce people are working on it and like my teams working on it and we will we will continue to pursue those opportunities and we continue to engage with our shareholders through these calls your participation individual calls on them.
Question, well evaluate opportunities and to participate in investor conferences in the near future, Okay and.
At this point are you looking at potential acquisitions or.
To expand a you're correct.
And what kind of dry powder or excess cash yeah.
Ah access backlog range at this point to pursue actress [laughter].
Well, we we evaluate opportunities all the time, but on the construction side nears safety is a top peak consideration. Your we believe our leverage is conservatism be able to leverage.
To your.
To acquiring or acquisitions or is for a strategic move to grow our company.
Hi, Mark dry powder you have.
Uh huh.
We have some mixed we have some capacity we've got some powder in a we've got reserves in our working capital line of credit so and.
The bank would banking financing opportunities would be available to us.
Okay. Thank you yeah I'm sorry go ahead.
Thank you I just say thank you.
Thank you.
Our next question comes from Ryan Parker, a private Investor. Please proceed with your question.
Mr partner Your line is now live.
[laughter].
And that just doesn't seem to be with us.
I'll move onto the next caller Mr. George Gasper, a private Investor. Please proceed with your question, Yes, just had two quick.
Additions to ask you about the property buildings and equipment at cost net on the balance sheet.
It's up about a four.
For.
A little over 4 million since December 31 of 2019.
Does is that represented in terms of new tracking equipment or can you explain what the increase is or is there some really stayed in there or or not and.
Can you give us a picture on that.
Or you want me to.
Regular property buildings and equipment are you talking about <unk>.
I'm talking about property buildings and equipment.
59 point or near 59.2 million yes.
All right you know the majority of its electrical construction equipment and we're also.
We're also expanding in.
In Spartanburg, South Carolina, we're building a new facility there to handle our expansion. So that's added some costs there.
I see okay, and could you give us an idea of what your total crew count is and maybe how that's changed during the first nine months of the year here.
Yes, Sir.
We're we're at approximately 520 employees and.
We're off a small per se.
HM small trisha.
I see so it's but it's pretty steady.
It's just it's steady.
I see okay, and and that if.
If you were to just break that down.
Hum.
<unk>, how many of those employees would be in and say that Texas area relative to the rest of your operations.
We we just don't we use them.
So stripping out by division So I got you.
Okay all right. Thank you.
Thank you George Thank you.
There are no further questions at this time I'd like to turn the call back over to Steve worry for any closing remarks.
Yes, I would like to thank everyone for joining us on our conference call today.
Also I would like to express my sincere thanks to our shareholders for their continued support.
Ladies and gentlemen. This concludes today's conference you may now disconnect. Your lines at this time. Thank you for your participation and have a great day.