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KAST CONSTRUCTION COMPANY LLC AND SUBSIDIARY
<br />SUPPLEMENTARY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
<br />As of and for the years ended December 31, 2013 and 2012
<br />NOTE A — CONTRACTS RECEIVABLE
<br />At December 31, 2013, contracts receivable are summarized as follows:
<br />Outstanding
<br />Less than
<br />90 days
<br />Outstanding
<br />More than Retainage
<br />90 days Receivable
<br />Total
<br />Contracts
<br />Receivable
<br />Completed contracts $ 181,661
<br />Contracts in progress 16,508,952
<br />$ 16,690,613 $
<br />20,902
<br />16,734
<br />37,636
<br />$ -
<br />4,055,394
<br />$ 4,055,394
<br />$ 202,563
<br />20,581,080
<br />$ 20,783,643
<br />As of March 5, 2014, the company has collected $14,127,451 of the contracts receivable
<br />noted above.
<br />NOTE B — BACKLOG
<br />The following is a reconciliation of backlog representing signed contracts in existence at
<br />December 31,:
<br />2013
<br />2012
<br />Balance at the beginning of the year
<br />New contracts and adjustments
<br />Less: contract revenues earned for the year
<br />Balance at the end of the year
<br />$ 38,114,172
<br />261,578,979
<br />299,693,151
<br />87,450,284
<br />$ 212,242,867
<br />$ 60,562,419
<br />41,377,003
<br />101,939,422
<br />63,825,250
<br />$ 38,114,172
<br />NOTE C -- CONTRACT GUARANTEES
<br />The company is generally required to furnish performance and payment surety bonds to
<br />contract owners. The bonds are secured by receivables from bonded contracts and a
<br />general guarantee from the company. The surety has required a guarantee from the
<br />company's members. At December 31, 2013, surety bonds for contracts totaling
<br />$134,010,606 had been issued with a current backlog of $94,638,400.
<br />At December 31, 2013, $91,192,648 has been estimated by the company as the total cost
<br />to complete their bonded contracts in progress. Of this amount, $64,695,272 has been
<br />subcontracted to date to various specialty contractors. At December 31, 2013, surety
<br />bonds from the subcontractors support $1,364,926 of the subcontracted backlog. The
<br />company also has a subcontractor default insurance policy which supports $27,464,674 of
<br />the subcontracted backlog.
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