Visionary Holdings Inc.

Consolidated revenue for Q3 2020 was $48.4 million, up 8.2% year over year. Electrical construction revenue was $48.1 million, up 11.3%, while real estate development revenue fell to $365,000 from $1.6 million. Electrical construction gross margin improved to 17.5% from 14.8%. Operating income was $1.9 million versus $2.1 million last year. Net income was $1.1 million, or $0.04 per share basic and diluted, versus $1.2 million, or $0.05 per share. EBITDA was $5.0 million versus $4.9 million. Cash provided by operating activities was $1.9 million versus $20.4 million, and the company said the decline was mainly timing-related. Total backlog was $385.2 million, up 105% from $187.5 million, and 12-month electrical construction backlog was $151.2 million, up 57.5% from $96.0 million. Cash and cash equivalents were about $20.6 million, funded debt was $40.3 million, and of a $23 million revolver, $12.3 million was available. Capital expenditures were $13 million for the first nine months, and full-year 2020 CapEx was projected at $16 million. Management did not provide formal revenue or EPS guidance, but said Q4 would be difficult to compare with the prior year because of strong 2019 closeouts, and that new MSA renewals begin contributing immediately. Real estate is expected to have some activity in 2021, with revenue from a new project expected in 2022.

Jason Spivey emphasized continuity after John Sottile’s passing, saying the management team will keep executing Goldfield’s strategy. He highlighted growth through geographic expansion, service-line broadening, and capitalizing on aging infrastructure, reliability, renewables and system-hardening spending. His tone was constructive and confident, repeatedly pointing to strong demand, active bidding, and opportunities in Texas, the Mid-Atlantic, Kentucky, Oklahoma, Arkansas, Louisiana and Kansas.

Steve Wherry focused on the quarterly bridge and balance-sheet detail. He cited the $48.4 million of revenue, 17.5% electrical construction gross margin, $3.6 million of SG&A, $3.0 million of depreciation and amortization, and a $1.4 million settlement charge tied to the late CEO’s estate, which he said would not recur. He also pointed to $20.6 million of cash, $40.3 million of funded debt, $12.3 million of revolver availability, and said the company paid down $5 million on its working capital loan after quarter-end; CapEx for 2020 was expected to be $16 million.

Analysts focused heavily on backlog declines versus revenue growth, asking why backlog looked lower even as business improved. Management replied that most projects are short-cycle and often complete within a year, so revenue can exceed reported 12-month backlog by a wide margin; they also said backlog rises when MSAs are renewed or new customers are added, and that the company renewed five MSAs since year-end, including two after September 30. Other questions centered on the CEO transition, the company name, analyst coverage, M&A, and whether the business is more attractive to investors under a different identity; management said the board is actively discussing permanent leadership, name change is being considered but not acted on yet, and they will evaluate transactions and investor outreach without commenting on specifics.