Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v2.4.0.6
INCOME TAXES
 12 Months Ended
Dec. 31, 2012
INCOME TAXES

6. INCOME TAXES

Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands):

 

     2012      2011  

Deferred tax liabilities:

      

Property, plant and equipment

    $ 37,721       $ 37,149   
  

 

 

     

 

 

  
     37,721         37,149   

Deferred tax assets:

      

Employee benefits

      588         409   

Uncompleted contracts

      3,472         17   

Stock based compensation expense

      126         216   

Allowance for uncollectible accounts

      5,107         —     

Federal net operating loss

      3,608         9,292   

Other

      138         223   
  

 

 

     

 

 

  

Total deferred tax assets:

      13,039         10,157   
  

 

 

     

 

 

  

Net deferred tax liabilities:

    $ 24,682       $ 26,992   
  

 

 

     

 

 

  

Our federal net operating loss generated during our 2011 tax year can be carried back two years or carried forward twenty years. We expect to utilize $17.6 million of this federal net operating loss in 2012 and carry $9.6 million forward to utilize in future years.

Significant components of income tax expense for the years ended December 31 were as follows (in thousands):

 

     2012     2011     2010  

Current:

       

Federal

    $ —        $ —        $ 4,496   

State

      534        239        406   
  

 

 

    

 

 

    

 

 

  

Total current

      534        239        4,902   

Deferred:

       

Federal

      (1,749 )      (828 )      3,085   

State

      (99 )      (55 )      279   
  

 

 

    

 

 

    

 

 

  

Total deferred

      (1,848 )      (883 )      3,364   
  

 

 

    

 

 

    

 

 

  

Income taxes

    $ (1,314 )    $ (644 )    $ 8,266   
  

 

 

    

 

 

    

 

 

  

 

A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax expense for the years ended December 31 is as follows (in thousands):

 

     2012     %     2011     %     2010     %  

U.S. statutory rate

    $ (1,892 )      35.0 %    $ (857 )      35.0 %    $ 7,476        35.0 % 

Increase (decrease) resulting from:

             

State income taxes

      783        (14.5 )      289        (11.8 )      893        4.2   

Qualified Production Activities

             

Income—Deduction

      —          —          —          —          (205 )      (1.0 ) 

Federal Work Opportunity Tax Credit

      —          —          —          —          —          —     

Other

      (205 )      3.8        (76 )      3.1        102        0.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income tax expense

    $ (1,314 )      24.3 %    $ (644 )      26.3 %    $ 8,266        38.7 %