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Advanced Roofing, Inc. and Affiliates
<br />Notes to Consolidated Financial Statements
<br />Note 4. Backlog
<br />Following is a reconciliation of the backlog of signed contracts as of December 31, 2015 and 2014:
<br />Contract revenues:
<br />Balance of signed but unperformed work, beginning of year
<br />New contracts and change orders during the year
<br />Less contract revenues earned during the year
<br />Balance, end of year
<br />Cost of contract revenues:
<br />Balance of signed but unperformed work, beginning of year
<br />New contracts and change orders during the year
<br />Less cost of contract revenues earned during the year
<br />Balance, end of year
<br />Note 5. Property and Equipment
<br />2015 2014
<br />$ 26,289,642
<br />$ 31,116,744
<br />77,862,454
<br />59,487,657
<br />104,152,096
<br />90,604,401
<br />70,431,170
<br />64,314,759
<br />$ 33,720,926
<br />$ 26,289,642
<br />$ 21,571,895 $ 24,824,743
<br />61,477,968 46,565,301
<br />83,049,863 71,390,044
<br />55,585,573 49,818,149
<br />$ 27,464,290 $ 21,571,895
<br />Property and equipment consist of the following as of December 31, 2015 and 2014:
<br />Land
<br />Buildings and improvements
<br />Equipment
<br />Vehicles
<br />Furniture and fixtures
<br />Less: accumulated depreciation
<br />2015 2014
<br />$ 3,581,796 $ 3,581,796
<br />3,578,894
<br />3,674,943
<br />4,292,344
<br />4,066,337
<br />4,303,068
<br />4,035,458
<br />301,816
<br />270,005
<br />16, 057, 918
<br />15, 628, 539
<br />8,656,966
<br />8,917,013
<br />$ 7,400,952
<br />$ 6,711,526
<br />Note 6. Line of Credit
<br />The Company has a line of credit that allows for maximum borrowings of up to $7,500,000, limited to
<br />eligible accounts receivable, inventory, and equipment, as defined in the agreement. There is a $500,000
<br />sub -limit under the line for the issuance of letters of credit (see Note 8). The line accrues interest at the
<br />one-month LIBOR plus 2.85% (3.09% as of December 31, 2015) and matures on June 23, 2017. The line
<br />of credit is secured by the assets of the Company and is guaranteed by the Company's stockholders. As
<br />of December 31, 2015, the balance outstanding on the line was $2,159,364. As of December 31, 2014,
<br />there was no balance outstanding on the line. The line of credit requires maintenance of certain ratios of
<br />combined debt service coverage and tangible net worth. The line of credit also includes covenants
<br />restricting stockholder distributions and compensation.
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