HomeMy WebLinkAboutBid Documents
.
, .Jacobi, Toombs & Lanz, Inc.
. Consulting Engineers & Land Surveyors
February 16, 2010
Jeffersonville Drainage Board
500 Quartermaster Court
Jeffersonville, Indiana 47130
Re: Winn Dixie Storm Drain
Project No. 0689A
Bid Documents
Gentlemen:
See attached bid documents submitted by the LOW BIDDER, Clark Nickles, Inc. These
documents need to be placed with the other project-related documents in the files of the
Drainage Board: "
1. Envelope turned in and opened containing the Contractor's bid.
2. Insurance certificate.
3. Contractor's Statement of Understanding of UTILITY CONFLICTS AND ISSUES.
4. Acknowledgement of receipt of Addenda No.1 and No.2.
5. Copy of cashier's check for $23,500.00 (original was returned to the Contractor
when he complied with the requirements).
6. Contractor's Financial Report.
7. Performance Bond (3 pages).
8. Payment Bond (3 pages).
9. Power of Attorney.
10. Companion Property & Casualty Insurance Company certificate.
11. "Notice to Proceed" letter.
12. Contract/Bid Form No. 96 (State Board of Accounts) 5 pages with Bid Sheet
attached $474,086.00.
Respectfully submitted,
JA BI, TOOMB~NZ, INC.
~
J n H. Toombs, Jr., P.E., P.
roject Engineer
120 Bell Avenue
C1arksville, IN 47129
812-288-6646
812-288-6656 Fax
1060 N. Capitol Avenue, Ste E360
1ndia,napo1is, IN 46204
317-829-3474
317-829-3473 Fax
1400 South 1 st Street
Louisville, KY 40208
502-583-5994-
502-583-7321 Fax
Clarksville, IN -Indianapolis, IN . Louisville. KY
Wwwjtleng.com
01/19/2010 17:16 FAX 5024477142
WESSEL INSURANCE AGENCY
141001
~
ACORq CERTIFICATE OF LIABILITY INSURANCE I DAn; IMMJDOIYVVY)
01/19/2010
F>RODUCI!tl 502.448.1625 FAX 502.447.7142 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFOFl:MATION
Wessel Insurance Agency, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
4101 Cane Run Road HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Louisville. KY 40216
INSURERS AFFORDING COVERAGE NAIC#
INSURI;D N1Ckl es, Inc.. Cl ark INSUREllA: Cincinnati Insurance 10677
1501 Tunnel Mill Road INSUR~Fl e;
Charlestown. IN 47111 INSURER c;
INSURER D:
INSURER Ii.;
THE POLICIES OF INSIJRANCE ~ISTED eE!I.OW HAVE BEEN ISSUED TO THE INSURED NAMI:D ABOVE FOR THE POLICY F>ERrOD INDICATED. NOTWITH$'rANDING
ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OtHE~ COCUMI!N'r WITH ReSPECT TO vvrtlCH THIS CERTIFICATE MAY SE rSSUE!D OR
MAY PERTAIN, THE INSURANCE AFFORDED Illy THE POl.lCIES DE!SCRIBeD HEREIN IS SUBJECi TO ALL THE TERMS, eXCLUSIONS AND CONDITIONS OF SUCH
MLlCIES. AGG~iGATE LIMITS SHOWN MAY HAVE BfiE!N REOIJCED BY PAID CLAIMS,
IIII$R DO' TYPE O~ JIIISURANCE POLICY NUIllIIliiR POUCY EFFECTIVE POLICY IOlIPIRATIOIII LIMITS
GENERAl., LIABILlTV CPPO&26827 10/26/2009 10/26/2010 eAOH OCCURRENCE S 1 000 OO(
~ COMMERCIAL GENi:RAL UABIU'ty DAMAGE TO RENTED $ 100.OO(
::= tJ CLAIMS MI\DE [!] OCCUR MED EXI" (Any On.! pa~Qn) $ 5.00
A PERSONAL & f,t:N INJURY S 1.000.00
GENERA~I\GGREGATE' s 2.000,00
G~N'L AGGRE('jATE L1MI'r APPLI~ PER: I"FlODUCTS - COMPiDP AGG II 2,000.00
r POI.ICY n ~r8T n LOC
~TolllOelU! lrAell.lTV CPP0826827 10/26/2009 10/26/2010 COMBINElJ SINGLE LIMIT
X ANY AUTO (1aIl 8QlI.~nt) II 1 OOO,OQ(
-
ALL OIo\oNED AUrOS BODILY INJURY
- S
SCHEDULED AUTOS (",rp8I'a(Jn)
A 'X
HIAEDAUTOS BOOII.'I' INJURY
"X NON.OWNED AUTOS (P... occldQm) $
~
PFlOl'SR'I'Y DAMAGE $
(l'lII'aeddomo
GAAAGE Ul\elllTY AUTO ONLY - EA ACClbENT $
=1 /iJJV""UTO OiliER THAN !;A ACO $
AUTO ONL y~ AGG $
ElCOEs5IUMBREiLLA llAElrUTY CPP0126a27 10/26/2009 10/26/2010 I;A,CH OCCURReNCE s 4.000 , OOJ
OOCUR o ClAIMS MADE AGGFlEGATE $ 4. 000 ,OO(
A $
R oeClUCTIBL!; .
RETENTION $ $
WORK~5 COMPSN$i\l1ON AND I T~~T~!,lf" I 10J~-
EMI"LOYERS' LtAelLITY E,~, EACH ACCIOENT $
ANY PROPRJi:TORlPARTNERIEXECU'!'IVE
OFFICERiMEMBEA EXCLUOED? E.L. OISEASE. lOA Ii.MPLOYEi $
~~~I~LPi~~~1oNs bQfow iii,L. DISEASIi. - POLICY UMlr s
OTHER CPP0826827 lO/l6!2009 10/26/2010 $100,000
Leased/Rented
A ontractor's Equipment
;oD~CRlF"nw.~ OF O"E~"tIOllllJ ~O~ONs rVEHICIa I ~Cl.USI~S AO,~ BY I!ND(lRSfMI!N'l' I SPECIAL I'ftOYIStONS
F; "Inn Dixu~ "ltc Storm Dra,n Ie abi nation Project
City of Jeffersonville
500 Quartermaster Court
Jeffersonville, IN 47110
C I
$MOULD AN\' OF l1lE AGQ'IIE llESClUll&b POUCll!S liliii tlANCI!:LI.EO BEFORE 'lliiii
l!Xl'IMll0N DA'Ii THIiR~~, 'l1Ilii ISSUING INSUIII!R WIt.L ENIlEAI/OR TO MAIL
~ DAys WRI'l'TI!N NOllCIl TO THiii CERTIl'lCA'rI; HDI.DI!tl NA",iiiD TO THE;: LiiiFT,
IilUT FAIl.URiii TO MAlI. SUCH NOTICiii SHALlIMPQ:jiii NO OBLlGAll0N OR lJAEllLlTV
OF IWf KIND UPON 1lIE rNSU~EiR, ITS AGeNTlI OR RI!J'RESiiiNTA TIV!!S,
AuntORIZED REiPRiiiSENTATI\riii
ACORD 25 (2001/08)
Richard Wessel BGR
..c.J....:
@ACORD CORPORA 'fION 1988
d)
1501 Tunnel Mill Road
Charlestown, IN 47111
(812) 256-3477 phone
(812) 256-6074 fax
COMMERCIAL EXCAVATION" DEMOLITION" CRANE & HEAVY EQUIPMENT RENTAL
BONDED & FULLY INSURED .. LICENSED DEMOLITION CONTRACTORS IN INDIANA & KENTUCKY
CONTRACTORS STATEMENT OF
UNDERSTANDING OF UTILITY
CONFLICTS & ISSUES
By submitting this bid, we understand the challenges and issues involved with the
potential conflict with existing utilities during the execution of this project.
Our bid price takes into consideration the costs required to coordinate the relocation of
any and all affected utilities, and the potential interruption and delays of operation in
constructing this project. However, it is understood that we, the CONTRACTOR, will not be
held responsible for schedule delays attributable to a given utility company's lack of cooperation
or completion of relocation.
Y:~~/
!/O/uf ·
Clark Nickles. President
By: (Printed Name and Title)
January 19.2010
Date
\._-
rf)
1501 Tunnel Mill Road
Charlestown, IN 47111
(812) 256-3477 phone
(812) 256-6074 fax
COMMERCIAL EXCAVATION <> DEMOLITION <> CRANE & HEAVY EQUIPMENT RENTAL
BONDED & FULLY INSURED <> LICENSED DEMOLITION CONTRACTORS IN INDIANA & KENTUCKY
January 19,2010
CITY OF JEFFERSONVILLE
WINN DIXIE DITCH STORM DRAIN REHABILITATION PROJECT JOB NO. 0689R
Clark Nickles, Inc. acknowledges and received the following addendums:
No.1 dated January 8, 2010
No.2 dated January 15,2010
IN WITNESS WHEREOF, This Proposal executed this 19th day of January, 2010.
IN THE PRESENCE OF:
BY:
~J;J~
'Name
PK~S/Jeu!-
Title I 17
G~i /VIl;4L~J
Name
jJp,'-N" .
Title
. .. '. -
~i~fEWYASH'~
; . ...;:::-STATE BANK
PAY
TO
THE;
ORD~R
OF
JOB #0689R
Remitter: CLARK NICKLES INC
CITY OF JEFFERSONVILLE
III .7 b g 78111 1:08 :l008 b 501: b.O ~OO 2111
~~YASHINGrON
~ __STATE BANK
-- ~
I
I
--J
BR
176978
c
03
JOB #0689R
Remitter: CLARK NICKLES INC
***TWENTY THREE THOUSAND FIVE HUNDRED
DOLLARS AND 00 CENTS ***
DATE
January 19, 2010
AMOUNT
***$23,500.00***
CITY OF JEFFERSONVILLE
D )l~
CUSTOMER COPY
NON-NEGOTIABLE
~
i(
C0
-:'""ii' RK NICKLES Il''O''r
'_~Li':%, 1 , 1"<"--'0
Audited Financial Reports
For the Year Ended
December 31, 2008
TABLE OF CONTENTS
Independent ALdiLcrs' Report
Financial Staternen:..:
Balanc,:Shee"t
1-2
S12ternen~ of ]nCOl11e
,
Stat:o':112';( cf Retained Earnings
4
Staternc'; of Cash Flows
5
1\otes tc=-inaDcial Statements
6-10
S'.lpplc',,'e:itary Information:
C~ont;.-(:~c'cs 11i Progress
II
ASSETS
CLARK NICKLES, i!\lCo
BALANCE SHEET
{See Independent Auditors' Reparr
DECEMBER 31, 2008
Current Assets:
Cash
Contract receivables - tracie
(less allowance for docotfu scccunts)
Employee receivables
Contract receivable- rstaincge
Prepaid expenses
Costs and estimated earnings .~ excess OT
bi)lings on uncompieted con:r2cts
Tota! current assets
Property and Equipment:
Lane
Leasehold improvemEnls
Equipment and vehiciss
:...ess accumulated devecia':c,.,
\let property and e=Juiorner-:
Other Assets:
Receivable from stoc~:hoi(jEf
C!osing cost
Less accumulated amortzcc:on
Total other assets
TOTAL ASSETS
The accompanying notes are an
part of the financial statements.
Page 1
':0G8
:5~; 4C ;432
:.iJO~C33
5.085
b4-4;249
<~; .551
2226
~.:;< 5.576
:;.97
5.031
3,756,'"'28
379:: 156
3-54-.(94)
:3:3e~3E)2
< ~;S.C77
"",,, "
,~ ~ ...."
(3~670)
.2 '; -l "~~.26
5::2.263;364
CLARK NICKLES, INC.,
BALANCE SHEET
S!2e independent Auditors' Report)
DECEMBER 31, 2008
Uft.B!UTIES AND STOCKHOLDERS' EQUITY
20D8
Current Liabilities:
p,ccounts payable
Line of credit
CUrlS'lt portion of lon9 ter-n de:)':
Bl1lings in excess of costs anc csstm2ted
earnings on uncompie"teej cont~2cts
A,ccrued liabilities
f\ccrued losses
$29~[:Sie.
299;ce~i
1 S<
.) ~::, ;:".
69.38'S
Total current liabiliUes
868525
Long-Term Liabilities:
Long term debt - !ess:urrent
967
=
Total long-term liabHities
967
Stcci'Zhoider's Equity:
Common stock, S100 par l/aiue~~,OOO shares
authorized, 100 shares issued 2nd outstanding
Paid iil capital
Retained earnings
5\,,) ../1-:.
38722C
Total Stockhoiderls Equity
42"/,34L
TOTA,L liABiLITIES Al\JD S'CC:-<:HOLDER'S EQUITY
$2,2633S{;
The accompanying notes are 8'1
part of the financial statements,
Page 2
Re"Y'enues:
Contract completed
Contract in progress
P,ccrued losses
Total revenues
Cost of revenues:
Contract completed
Contract in progress
Tota! co~ cfrevenues
Gross profit
Doerating Expenses:
()ffice wages
Bad debt
,~mortization
Officer's salary
Payroll taxes
L.ega! and accounting
Property taxes and licenses
"Telephone
DOT expense
Office supplies and e.xpense
Dues and subscriptions
Utilitjes
!12vel
Rent
Health insurance
Contributions
Advertising
~J1isce!:aneous and othel"
Janitorial
Tota! operating expenses
Net operating income
Other income and (expense):
!Vi Iscei ianeous
interest income
Interest expense
Gain on disposal of assets
CLARK NICKLES, INC.
STATEMENT OF INCOME
(See independent Auditors' Report)
icr t.le year ended December 31, 2008
Total other income 8i'd (exc;;:,~se)
Net income
The accompanying notes are an
2008
Amount
$2,834,405
1,395,787
(69,889)
4,160,303
2,414,025
1,083,133
3,497,':58_
663,':45
6'i ,082
37,803
3,670
18'S,500
175259
1 S; i 1 "j
24,517
3': ,7'1 9
4,896
7,652
5.833
2'1,725
2,500
1 "iA43
46,1',3
'! ,435
599
9:5~i:C
7,179
498,546
164,599
34,882
4,516
(133,914)
17.032
(77,484)
$87:"~15
part of the financial statements.
Page 3
;:: 8;'cer~~
b8. 3
"; ,'S.:"::]
;')1j.V0
52'.02;
.~,:) . oJ..:}
84.06
r~ 5. '34
~ /7
, .-1",
=: .g~!
.-, .~>..""'.
:.w' ,;~;:::)
/ Ii c:.:
"';-.'-1'0
'. ~:
,/.+ i
,j..jC
" ,~. r,
-' .::):j
- -~c:..
-'. : '-
.; r
-.~ : L
~ -c 8
'-'. t..o,.'
.;::::'L
').::}6
'". .,"\-:{
,._1.....
, ;~~:j
'" ..< .-;
--
------.
-~:?::
,""-,,
'-\.,-.
c:;.,)
i: ,/
-.
..-.._.-",-_._-~---.
Balance, beginning of year
f\iet income
Dividends paid during the yea:
Baiance, end of year
Tr,8 accompanying notes are a,
CLARK NICKLES, INC.
STXfEMENT OF RETAINED EARrl.!!NGS
Jildependent Auditors' Report)
.f)r 'Lle year ended December 31, 2008
part of the financial staternents.
Page 4
:2.008
i:,;32 ~ '134
87 1 ~~ 5
>__~.(,3.2 'j : 0;29)
$387.220
CLARK NICKLES, INC.
,STATEMENT OF CASH FLOWS
independent Auditors' Report)
fe,' the year ended December 31,2008
Cash flows from operating activities:
Net income
Adjustment to reconcile netn:::on--e:o 'ieT
cash provided by operating 2ct;v:[es:
Depreciation and amortzatic0
Decrease (increase) in contraot and job receivables
Decrease (increase) in re:tainc;ge i-eceivable
Decrease (increase) in employee --ece:vables
Decrease (increase) in prepaid 2XpS:lSes
Decrease (increase) in costs anaesjmated earnings
in excess of billings on uncampieted contracts
inc:ease (decrease) in accounts:::ayab!e and other
current liabilities
increase (decrease) in accrued icsses
increase (decrease) in excess or costs and
estimated earnings on ur,compieted contracts
increase (decrease) in accrued
Net cash provided (used] by cperatons
Cash flows from investing activities
Gain on sale of property anci equ'pi-nent
Proceeds from the saie of equipment and vehicles
Purchases of equipment and veh'::;'es
Net cash provided (used) by;vssting activities
Cash flows fiOm financing activities.
Proceeds (payments) from notes :::;2}3b]e
Loans from (Joans to) stockho!dec
Dividends
Net cash provided (used) by
a ctiviti es
increase (decrease) in cash
Cash beginning of yeaT
Cash, end of year
Supp!emental disclosures of cash fiei,' information:
interest paid
The accompanying notes are an
part of the financial statements,
?age 5
c.~G:D8
.:2'::7 1!3
09-
3< 7.39'1
.694)
2,0,95
1)
'93:308
f~:S
59.8.89
73)
.___..__.,__.J:-~: 81 <3 )
52.063
7.032)
35.:'='OD
8,529)
(32~i ;D29)
...---..----
_____._.::::;t;. :?358)
::.3 :644~
'3 .78C3
S ,<.0.4,32
~, 33.S~; 4
CLARK NiCKLES, INC.
[\JOTES TO THE FINANCiAL STArE!vjE\~3
December 31,2008
1 NATURE OF BUSINESS AIND SIGNr=;C,t\NT ACCOUNTING POLlellES
Nature of Business
The Company's operations 2re in the construction industry as a subcontractor primar"ily
within indiana. The Company Is engaged primarily in commercial excavation arc d'3mciition jobs.
The work is performed under fixed -p'-:ce contracts. In connection with its norr-ns: construction
activities, the Company may be required tJ acquire performance bid or payment bonds.
The surety issuing the bonds has reCCLrse against certain of the Company's assets in tile event the
surety is required to honor the bonds. The Company classifies contract-related bEdances as current
assets and liabilities in the accompanying balance sheets. Balances vlfhich are 'lot contract-related
are classified as current only 'f they ace expected to be realized or settled within o,"'e ye;:F. Billings
are submitted as work progresses ac:cU,8 balance is due in 30 days. Retainages a'e due upon
acceptance of the project by the owne'""
Cash and Cash Equivalenits
Cash and cash equivalents inciude caSh on hand, cash in banks, and all highly
with a maturity of three months 0'"" less at the time of purchase.
Investment
R.evenues and Cost Recoqrdtion
neome from long-term and shor"He"m contracts is recognized by the percentage-of-completion method.
The percentage-of-completion is deTermined by relating the actual cost of work pe:formed to date to the
current estimated total cost of the respective contracts. The length of the Compary's ccrtract varies, but
is typically less than one year.
Contract costs include al! direct rnate(a: and labor costs and those indirect costs i"e;2tec to contract
performance, such as indirect labor, sJppiles, toois, repairs, and depreciation.
Provisions for estimated losses :::11 '.J:~coiT:pieted contracts are made in the period ";/ihicn such
'osses are determined. Chan;}es in performance, job conditions, and estimatedcrcf;tability,
including those arising from contrac~ oenaity provisions and final contract settlements ,Ticy result in
revisions to costs and income ane: a'""s '""ecognized in the period in which the revisions are determined.
Profit incentives are inCluded i'l revenLe when their realization is reasonably assc'rec.
The asset, "costs and estimated Sa!T in excess of billings on uncompleted cont;"2CIS' represents
revenue recognized in excess of amC:./1ts biUed. The liability, "billings in excess of CJsts and estimated
earnings on uncompleted contracts. '""epresents billings in excess of revenue
Contracts Receivab!e
Contracts receivable consist Of outstanding billings due for the construction 0'( '/sricu3
projects based on contracted prices. The Company established an allowance fOr cicubtfL~i
accounts of $35,456 as of December 3';,2008, based upon review of outstand'ng receivables
historical collection informaton and existing economic conditions. Norma! contracts
receivable are due 30 days after tne issuance of the invoice. Contract retentions 2rSJci8 30
days after the compietion or the p;"ojec and acceptance by the owner. Receivables .~2st due
more than 120 days are considered delinquent Delinquent receivables are writts'i 0"'1' based
en the individual credit evaiuation ane specific circumstances of the customer. The
charges ali uncollectible accounts directly to current operations.
Page 6
CL~RK NiCKLES, INC.
NOTES TO THE FINANCIAL STATEfvJEN'S
December 3--] ~ 2008
1 NATURE OF BUSiNESS AND SiGNWjCANT ACCOUNTING POUCiES
Property, Equipment, and Deprecia.(ion
Property and equipment are stated at cost. Provisions for depreciation of prope<;y end equipment
have been computed on the straight-:ne 2nd accelerated methods over the estimated useful lives.
Use of Estimates
The :)reparation of financia' stateme~.'s in conformity with accounting principles accepted in
the United States of America requires inanagement to make estimates and assuiTi,J"'ons that affect
certain reported amounts and disciosores. Accordingly, actual results could differ fioin those estimates.
income Taxes
The Company was organized as anS corporation on February 1, 1976. Federai ;nu:;rne Iaxes are
not payable by, or provided for, the :3 20rporation. Stockholders are taxed on ltielr share of
the earnings. Revenue is allocated eauaily to the shareholders.
2 Cash and Cash Equivalents
For purposes of the statement of cash fiows, the Company considers all short-te:T debt securities
pvchased with a matu:ity of three months er less to be cash equivalents.
3 Property and Equipment
Depreciation expense for the year en:ed December 31, 2008 was $187,524.
4 Short-Term Bank Financinq
The Company has a iine of cr,sdit vvlth ma>::imum borrowings of $300,000. The note Ji-ovides
fOj- interest at 837%. The line is Quars:--;teed by the Company's shareholders and-eal estate.
The baiance as of December 31, 20ee was $299,061.
in connection with the bank notE paY28ie, the Company has agreed, among ether ih to
a minimum balance of $200,000 in a depository account with the bank.
5 Contracts Receivable
Contracts receivable at December 3.,.2008 oonsisted of the following:
2008
Contracts receivable
Billed
CompieTed:;ontracts
(:ontra cis-j n...prog ress
$
'--:;i~';::: ~:' '::::0
L<....."--': "c....'-.)
F~;eta:r;2ges
ljnb;-;ec~
$ "1,279,:73?3
Page 7
CLARK NICKLES, INC.
!'-JOTES TO THE F!NANCiAL STf',TEIV1Er,iT2
December" 31, 2008
6 Costs and Estimated Eamillffi; on Contracts-in-ProQress
Costs and estimated earnings on uncompleted contracts are as follows:
20lJ8
Costs incurred on uncompleted contracts
Estimated earnings
$1 ;083; ,),j
3 ~ 2.1354
1,395.787
Less biilings to date
'j :388~895
$6 :892
: V~c1:
Inc!uded in the accompanyin';J balance sheet under the following captions:
Costs and estimated earnin~j in excess uF billings
on uncompleted contracts .L,eX)
B:I!ings in excess of cost and estimated e2rnings
JI: uncompleted contracts :.33d.'
-Tota ~;6~8S2
7 Related Party Transactions
Related party transactions occur between Clark Nickles, Inc., CWN Holdings, inc.
BLN Holdings, Inc., and Clark Nickles CWN Holdings, Inc. and BLN Hoidings,nc. are
vvholiy ovvned by Ciark Nickles and !3renda Nickles, shareholders of Ciark Nickles, !nc
Certain amounts are paid and services are provided by Clark Nickles, Inc. for the reLated
parties. These payments and services are charged to the Receivable from Stoc:,.;hoider account.
Periodic repayments are made tJY Car~ !\!ickies and the related companies.
totaled $63,038 in 2008, while repayn,ents totaled $3,000. The Company charges 'nterest
on the average receivable balance 2t a rate of 2%. The Company recognized interest income
of $45H: in 2008.
The Company's office and stora!;J8 are located on land owned by the s;2'-e:,ciders. The
Buildings are used by the CornpanY/i:c(;Jut charge under agreement with the sharehoidsiS.
8 Surety Bonds
The Company, as conditions for enter;;,g into construction contracts, has outst2nd;n~ sL.:-ety bonds
approximating $2,500,000. The Company guarantees the bonds.
9 Concentration of Credit Risi4; and Economic Dependence
Financiai Instruments, which potented,)' subject the Company to concentrations:;' crsdit risk, conSist
principaiiy of cash and contracts recel/able. At times, such cash and temporary cash ;;:vestments in banks
are in excess of the FDiC Insurance ,jrni( Credit risk with respect to cash and cash investments
is minimized by using high-credit qua:ity financial institutions. The Company tc minimize
contracts receivabie credit risk by reviewing customer credit history before extwK!ing credit and by
monitoring customer's credit exposure on a continuing basis.
-:-he Company maintains its cash at institutions located in Southern, . ne
baiances are insured by the Federal DeDosit insurance Corporation up to $250 COG
Page 8
I"::LARK NiCKLES. INC
i\j()TES TO THE FiNANCiAL. STATEIV1Ei\-'S
DeGembe~ 3'; , 2008
'! 0 Contract BackloQ
The following schedule summarizes changes in backlog on contracts during Hie year ended
December 31, 2008. Backlog represer!ts the amount of revenue the Company expects to realize
from work to be performed on uncompleted contracts in progress at year-end arc' hJm contractual
agreements on which work has not begun.
Balance, December 31,2007
New contracts and contract adjustment. 2J08
Less contract revenue eameo, 200(;
Balance. December 31,2008
$1,921
2,677,699
4,598,733
4,160,303
$438,4.30
11 Fair Value of Financial instn..imerrts
The carrying amount of the foilo'fving instruments approximate fair value becaus'e of the short
maturity of the instruments Errpioy:::e C:Gvances, receivable shareholder, trc:de receivables.
The fair value of the Company's iong:sTn debt is estimated at $1 ,158,776 based on the future cash
flows associated with each note discoiFited using the Company's cum:~nt borrc'Ning rate 'cae
similar debt.
12 Lonq-term debt:
Long-term debt at December 31, 2005 consists of the following stated at fair r:1C:,1<etv'aiue:
Lender and
Collateral
Pa)rment
New Washington State Bank
96 Mack Truck
00 Mack Truck
Dean Real Estate
Real Estate 72 Acres
$964
986
245
21.963
Case 'Credit
580L
590SL Backhoe
550H Dozer
590SM
537
',.-" '.-.
V ~ v
~ ,220
842
Interest
Rate
Balance
2008
Date
8.75%
8.75%
8.00%
8.37%
October H, 20 C:
October 17, 20' C.
July 2,2011
January 22, 2C~:3
$19.5/-:9
20,OC<3
25,:07
1,003,6S8
5.90%
8.50%
2.90%
5.00%
Aprii 19, 2002
June 8, 20C9
October 20, 2C' C
August26,20"'3
2.1 C:;
3 ~.~0
"-"v -"
,......v.:-
27,244
42,655
Page 9
.
CLC\RK N CKLES, iNC.
r~CTES TO THE FINANCiAL. STA,TEfv1E1\T2
December 31, 2008
Lender and
Collateral
Payment
Interest
Rate
Maturib!
Date
Chase Automotive
2004 Ford Ranger
Ford Truck
2005 ~ord Ranger
Totals
Less cu rrent portion
Tota! long-term debt
265
340
290
6.26%
7.99%
6.99%
December 23, 20,=9
December 7, 2Ci Ci
Marcr! 14, 20c iJ
The annual maturities of lon;)-term clebt at December 31,2008 are as follows:
;"hersa:=ter
Tota'
2009
20~jO
20~i 1
2012
20<3
Page 10
; 8:3..<'8<-
LUi C, 0:>::,
'v...... .....''-'.,.",
$1;'158;7'73
Balance
2008
2,821
7,553
4,445
1 , 158,776
(191,281)
$967,495
~
SUPPLEMENT ARY \NFORMA.T~ON
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