Equity Method Investments

6 Months Ended

Jun. 30, 2013

Equity Method Investments

Equity Method Investments

Note 7—Equity Method Investments

WesPac Energy LLC

On July 1, 2010, the Company acquired a 50% membership interest in WesPac Energy LLC, a Nevada limited liability company (“WesPac”), from Kealine Holdings, LLC (“Kealine”), a Nevada limited liability company.  Kealine holds the remaining 50% membership interest in WesPac.  WesPac develops pipeline and terminal projects in the United States, Canada and Mexico.  We have no future obligation to make any additional investments into WesPac. All key investment, management and operating decisions of WesPac require unanimous approval from a management committee equally represented by Kealine and us.  The Company believes the ownership interest in WesPac broadens its exposure to construction opportunities across North America.

The following is a summary of the financial position and results as of and for the periods ended:

	June 30, 2013		December 31, 2012
WesPac Energy, LLC
Balance sheet data
Assets	$	16,176	$	16,896
Liabilities	773		1,063
Net assets	$	15,403	$	15,833
Company’s equity investment	$	11,248	$	11,463

	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Earnings data:
Revenue	$	50		$	111		$	89		$	511
Expenses	$	288		$	428		$	519		$	644
Earnings before taxes	$	(238	)	$	(317	)	$	(430	)	$	(133	)
Company’s equity in earnings	$	(119	)	$	(159	)	$	(215	)	$	(67	)

St.—Bernard Levee Partners

The Company purchased a 30% interest in St.—Bernard Levee Partners (“Bernard”) in the fourth quarter 2009 for $300 and accounts for this investment under the equity method.  Bernard engaged in construction activities in Louisiana, and all work was completed January 2013.  Bernard distributed $490 and $4,200 to its equity holders during the six months ended June 30, 2013 and 2012, respectively, of which, the Company’s share, as calculated under the joint venture agreement, was $145 and $1,260 for the same periods in 2013 and 2012, respectively.  The following is a summary of the financial position and results as of and for the periods ended:

	June 30, 2013		December 31, 2012
St. — Bernard Levee Partners
Balance sheet data
Assets	$	22	$	592
Liabilities	22		86
Net assets	$	—	$	506
Company’s equity investment	$	—	$	150

	Three months ended June 30,					Six months ended June 30,
	2013			2012		2013			2012
Earnings data:
Revenue	$	—		$	499	$	—		$	3,934
Expenses	$	16		$	126	$	16		$	198
Earnings before taxes	$	(16	)	$	373	$	(16	)	$	3,736
Company’s equity in earnings	$	(5	)	$	112	$	(5	)	$	1,121

Alvah, Inc.

As part of the acquisition of Q3C, the Company acquired a 49% membership interest in Alvah, Inc., a California corporation (“Alvah”).  Alvah is engaged in electrical contracting activities, primarily in Northern California and worked as a subcontractor for ARB prior to the Q3C acquisition. Alvah has continued to work for ARB subsequent to the acquisition.  In December 2012, Alvah distributed $200, of which the Company’s share was $98.  During the three and six months ending June 30, 2013, payments made by ARB to Alvah were $1,423 and $2,909, respectively, and payments made by Q3C were $0 and $212, respectively.  For the same periods in the prior year, ARB made payments of $908 and $2,153, respectively and Q3C made payments of $115 and $233, respectively.

The following is a summary of the financial position and results as of and for the period ended:

	June 30, 2013		December 31, 2012
Balance sheet data
Assets	$	3,009	$	2,177
Liabilities	1,477		1,208
Net assets	$	1,532	$	969
Company’s equity investment in venture	$	1,476	$	1,200

	Three months ended June 30,					Six months ended June 30,
	2013			2012		2013		2012
Earnings data:
Revenue	$	3,292		$	—	$	6,008	$	—
Expenses	$	3,474		$	—	$	5,445	$	—
Earnings before taxes	$	(182	)	$	—	$	563	$	—
Company’s equity in earnings	$	(89	)	$	—	$	276	$	—

Because Alvah was not acquired until November 2012, there was no activity in the prior year.