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TGSV ENTERPRISES, INC.
FINANCIAL STATEMENTS
WITH SUPPLEMENTARY INFORMATION
DECEMBER 31, 2017
AND
INDEPENDENT ACCOUNTANTS’ REVIEW REPORT
TGSV ENTERPRISES, INC.
FINANCIAL STATEMENTS
WITH SUPPLEMENTARY INFORMATION
DECEMBER 31, 2017
TABLE OF CONTENTS
Page Independent Accountants’ Review Report 1 Financial Statements: Balance Sheet 2 Statement of Income and Retained Earnings 3 Statement of Cash Flows 4 Notes to Financial Statements 5 – 16 Supplementary Information: 17 Independent Accountants’ Review Report on Supplementary Information 18 Schedule I - General and Administrative Expenses 19 Schedule II - Earnings from Contracts 20 Schedule III - Contracts in Progress 21 Schedule IV - Completed Contracts 22
Certified Public Accountant
2600 South Douglas Road, Suite 900
Coral Gables, Florida 33134
Phone: 305-445-0777
Fax: 305-446-8576
www.jjrpa.com
Member
American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants
INDEPENDENT ACCOUNTANTS’ REVIEW REPORT
To the Board of Directors
TGSV Enterprises, Inc.
Hialeah, Florida
We have reviewed the accompanying financial statements of TGSV Enterprises. Inc. (a Florida corporation),
which comprise the balance sheet as of December 31, 2017, and the related statements of income and retained
earnings, and cash flows for the year then ended, and the related notes to the financial statements. A review
includes primarily applying analytical procedures to management’s financial data and making inquiries of
company management. A review is substantially less in scope than an audit, the objective of which is the
expression of an opinion regarding the financial statements. Accordingly, we do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement whether due to fraud or error.
Accountants’ Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements on Standards for
Accounting and Review Services promulgated by the Accounting and Review Services Committee of the
AICPA. Those standards require me to perform procedures to obtain limited assurance as a basis for reporting
whether we are aware of any material modifications that should be made to the financial statements for them to
be in accordance with accounting principles generally accepted in the United States of America. We believe
that the results of our procedures provide a reasonable basis for our conclusion.
Accountants’ Conclusion
Based on our review, we are not aware of any material modifications that should be made to the accompanying
financial statements for them to be in accordance with accounting principles generally accepted in the United
States of America.
February 22, 2018 -1-
See accompanying notes to the financial statements
and independent accountants’ review report.
-2-
ASSETS
Current assets:
Cash and cash equivalents 521,000$
Short-term investments 855,000
Marketable equity securities 971,718
Contracts receivable 2,550,601
Costs and estimated earnings in excess of billings
on uncompleted contracts 95,311
Other current assets 49,379
Total current assets 5,043,009
Property and equipment, net 31,598
Total assets 5,074,607$
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities 2,065,029$
Billings in excess of costs and estimated earnings
on uncompleted contracts 481,120
Total current liabilities 2,546,149
Stockholders’ equity:
Common stock - par value $1 per share; 100
shares authorized, issued and outstanding 100
Additional paid-in capital 664,823
Retained earnings 1,863,535
Total stockholders’ equity 2,528,458
Total liabilities and stockholders’ equity 5,074,607$
TGSV ENTERPRISES, INC.
BALANCE SHEET
DECEMBER 31, 2017
See accompanying notes to the financial statements
and independent accountants’ review report.
-3-
Contract revenues 14,693,367$
Cost of revenues 13,156,890
Gross profit 1,536,477
General and administrative expenses 1,251,155
Operating income 285,322
Other income (expense):
Interest and investment income 60,908
Net unrealized gains on marketable equity securities 69,076
Realized losses from early redemptions of short-term investments (1,434)
Realized losses from sales of marketable equity securities (3,630)
124,920
Net income 410,242
Retained earnings, January 1, 2017 1,726,293
Distributions to stockholders (273,000)
Retained earnings, December 31, 2017 1,863,535$
TGSV ENTERPRISES, INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 2017
See accompanying notes to the financial statements
and independent accountants’ review report.
-4-
TGSV ENTERPRISES, INC.
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2017
Cash flows from operating activities:
Net income 410,242$
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 12,202
Net unrealized gains on marketable equity securities (69,076)
Realized losses from early redemptions of short-term investments 1,434
Realized losses from sales of marketable equity securities 3,630
Change in operating assets and liabilities:
Contracts receivable 4,925,389
Costs and estimated earnings in excess of billings
on uncompleted contracts (27,365)
Other current assets 1,969
Accounts payable and accrued liabilities (3,468,033)
Billings in excess of costs and estimated earnings
on uncompleted contracts (916,564)
Net cash provided by operating activities 873,828
Cash flows from investing activities:
Redemption and maturities of short-term investments 938,566
Purchase of short-term investments (1,135,000)
Purchase of marketable equity securities (23,671)
Proceeds from sales of marketable equity securities 1,000
Purchase of property and equipment (16,787)
Net cash used for investing activities (235,892)
Cash flows from financing activities:
Distributions to stockholders (273,000)
Net cash used for financing activities (273,000)
Net increase in cash and cash equivalents 364,936
Cash and cash equivalents, January 1, 2017 156,064
Cash and cash equivalents, December 31, 2017 521,000$
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and nature of operations
TGSV Enterprises, Inc. (“the Company”) was incorporated on March 22, 1996 under the
laws of the State of Florida. The Company is engaged primarily in the construction of
commercial buildings in South Florida. The Company’s work is primarily performed under
fixed-price and cost-plus fee contracts. The lengths of the Company’s contracts vary,
typically ranging from six to eighteen months. The Company follows the practice of filing
statutory liens on all construction projects when collection problems are anticipated. The
liens serve as collateral for contracts receivable.
Revenue and cost recognition
Revenues from fixed-price construction contracts are recognized on the percentage-of-
completion method, whereby revenues on long-term contracts are recorded on the basis of
the Company’s estimates of the percentage of completion of contracts based on the ratio of
actual cost incurred to total estimated costs. This cost to cost method is used because
management considers it to be the best available measure of progress on these contracts.
Revenues from cost-plus fee contracts are recognized on the basis of costs incurred during
the period plus the fee earned, measured on the cost to cost method. Revenue from time and
material contracts are recognized currently as the work is performed.
Cost of revenues include all direct material, subcontractor, labor, and certain other costs
related to contract performance, such as indirect labor and fringe benefits, supplies, tools,
equipment rental, repairs, insurance and depreciation costs. General and administrative costs
are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts
are made in the period in which such losses are determined. Changes in job performance, job
conditions and estimated profitability may result in revisions to costs and income, and are
recognized in the period in which the revisions are determined. Changes in estimated job
profitability resulting from job performance, job conditions, contract penalty provisions,
claims, change orders, and settlements, are accounted for as changes in estimates in the
current period. Claims for additional contract revenue are recognized when realization of the
claim is probable and the amount can be reasonably determined.
See independent accountants’ review report.
-5-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue and cost recognition (continued)
The asset, “costs and estimated earnings in excess of billings on uncompleted contracts,”
represents revenues recognized in excess of amounts billed. The liability, “billings in excess
of costs and estimated earnings on uncompleted contracts,” represents billings in excess of
revenues recognized.
Use of estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those
estimates. Management periodically evaluates estimates used in the preparation of the
financial statements for continued reasonableness. Appropriate adjustments, if any, to the
estimates used are made prospectively based upon such periodic evaluation. It is reasonably
possible that changes may occur in the near term that would affect management’s estimates
with respect to the percentage-of-completion method, allowance for doubtful accounts and
accrued expenses. Revisions in estimated contract profits are made in the period in which
circumstances requiring the revision become known.
Balance sheet classifications
The Company includes in current assets and liabilities retainage amounts receivable and
payable under construction contracts, which may extend beyond one year. A one-year time
period is used as the basis for classifying all other current assets and liabilities.
Short-term investments
All highly liquid investments with stated maturities of greater than three months are
classified as short-term investments. The appropriate classification of the investments is
determined at the time of purchase and their designation is reevaluated at each balance sheet
date. In general, investments with original maturities of greater than three months and
remaining maturities of less than one year are classified as short-term investments.
See independent accountants’ review report.
-6-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Short-term investments (continued)
Investments with maturities beyond one year may be classified as short-term based on their
highly liquid nature and because these investments represent cash that is available for current
operations. The Company classifies these investments with maturities beyond 12 months as
current assets under the caption short-term investments in the accompanying balance sheet.
The fair value of these investments approximates their carrying values.
Marketable equity securities
Investments in marketable equity securities are classified as trading and are stated at fair
value. Fair value is based on quoted market prices using prevailing financial market
information. Unrealized holding gains or losses are reflected in earnings. Realized gains or
losses on the sale of securities are determined using the specific identification method and
are included in earnings.
Contracts receivable
Contracts receivable are based on contracted prices. The Company provides, when necessary,
an allowance for doubtful collections based upon a review of outstanding receivables,
historical collection information, and existing economic conditions. Normal contracts
receivable are due 30 days after the issuance of the invoice. Contract retentions are due after
completion of the project and acceptance by the customer. Receivables past due more than
120 days are considered delinquent. Delinquent receivables are reviewed by management and
may be written off based on individual credit evaluation and specific circumstances of the
customer. As of December 31, 2017, management has determined that no allowance is
deemed necessary.
Unbilled receivables result from the accrual of revenues on completed contracts for which
billings have not yet been rendered.
Property and equipment
Property and equipment are stated at cost. Depreciation is computed using the straight-line
method over the estimated useful lives of the assets, which range from 5 to 7 years.
Leasehold improvements are amortized over the shorter of the lease term or the estimated
useful lives of the improvements.
See independent accountants’ review report.
-7-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Property and equipment (continued)
When assets are retired or otherwise disposed of, the cost and related accumulated
depreciation are removed from the accounts, and any resulting gain or loss is recognized in
income for the period. The cost of maintenance and repairs is charged to income as incurred;
significant renewals and betterments are capitalized.
Impairment of long-lived assets
The Company reviews long-lived assets for impairment whenever events or circumstances
indicate that the carrying value of such assets may not be fully recoverable. Impairment is
present when the sum of undiscounted estimated future cash flows expected to result from
use of the assets is less than carrying value. If impairment is present, the carrying value of the
impaired asset is reduced to its fair value. During the year ended December 31, 2017, there
were no impairment losses recognized for long-lived assets.
Income taxes
The Company and its stockholders have elected S Corporation status for federal income tax
purposes. Under this election, the taxable income of the Company is passed through to its
stockholders to be taxed at the individual level rather than the corporate level. Accordingly,
the accompanying financial statements do not include a provision for income taxes.
However, the Company generally distributes funds to the stockholders through capital
distributions to pay income taxes attributable to corporate earnings.
The income allocable to the stockholders is subject to examination by federal taxing
authorities. In the event of an examination of the income tax returns, the tax liability of the
stockholders could be changed if an adjustment in the income is ultimately determined by the
taxing authorities.
Management has determined that there are no uncertain tax positions that would require
recognition in the financial statements. If the Company were to incur an income tax liability
in the future, interest on any income tax liability would be reported as interest expense and
penalties on any income tax would be reported as operating expense.
See independent accountants’ review report.
-8-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
New accounting pronouncements
The Company evaluates new accounting pronouncements for relevance and impact on its
financial statements. Management does not expect that timely adoption of these new
pronouncements will have a material impact on the Company’s financial position, results of
operations, or cash flows.
Advertising costs
Advertising costs are charged to operations as incurred and are included in general and
administrative expenses.
Compensated absences
The Company does not permit carryover of unused vacation to subsequent periods; therefore,
no amounts for compensated absences have been accrued at December 31, 2017.
Date of management’s review
Subsequent events have been evaluated through February 22, 2018, which is the date the
financial statements were available to be issued.
2 CASH AND CASH EQUIVALENTS
Cash and cash equivalents include all cash balances and highly liquid investments with a
maturity of three months or less. As of December 31, 2017, the Company has a repurchase
agreement in the amount of $317,101, certificates of deposit amounting to $25,000, and
money funds aggregating $178,899.
The Company maintains cash and cash equivalents at several financial institutions. Funds in
noninterest bearing and interest-bearing accounts are insured by the FDIC up to $250,000.
Balances at these financial institutions sometimes exceed the insurance limits.
See independent accountants’ review report.
-9-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
3 SHORT-TERM INVESTMENTS
Short-term investments consist of certificates of deposit totaling $855,000. The certificates
earn interest at rates ranging from 1.25% to 1.75% and have maturity dates through
December 27, 2018, with penalties for early withdrawal. Any penalties for early withdrawal
would not have material effects on the financial statements. As of December 31, 2017, funds
in the interest-bearing accounts were insured in full.
4 MARKETABLE EQUITY SECURITIES
Investments in marketable equity securities are classified as trading securities and are
included in the accompanying balance sheet as follows:
Cost
Basis
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Closed end funds $ 375,681 $ 48,690 $ (95,003) $ 329,368
Mutual funds 621,349 72,723 (51,722) 642,350
$ 997,030 $ 121,413 $ (146,725) $ 971,718
Net unrealized gains on marketable equity securities recorded through earnings aggregated
$69,076 for the year ended December 31, 2017.
The Fair Value Measurements Topic of the Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) establishes a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Proceeds from sales of marketable equity securities for the year ended December 31, 2017
amounted to $1,000, resulting in a realized gain of $77. Losses from adjustments to
marketable equity securities amounted to $3,707, resulting in net realized losses from
marketable equity securities of $3,630 for the year ended December 31, 2017.
See independent accountants’ review report.
-10-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
4 MARKETABLE EQUITY SECURITIES (continued)
A fair value measurement assumes that the transaction to sell the asset or transfer the liability
occurs in the principal market for the asset or liability or, in the absence of a principal
market, the most advantageous market. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the
fair value hierarchy are briefly described as follows:
Level 1 Inputs to the valuation methodology are unadjusted quoted
prices for identical assets or liabilities in active markets.
Level 2 Inputs to the valuation methodology include quoted prices
for similar assets and liabilities in active markets, and inputs
that are observable for the assets or liabilities, either directly
or indirectly, for substantially the full term of the financial
statements.
Level 3 Inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. At December 31, 2017, all
marketable equity securities are classified as Level 1 within the fair value hierarchy. There
have been no changes in the methodologies used at December 31, 2017.
Marketable equity securities are measured at fair value on a recurring basis. The following
table sets forth by level, within the fair value hierarchy, the Company’s marketable equity
securities at fair value as of December 31, 2017:
Level 1 Level 2 Level 3 Total
Closed end funds $ 329,368 $ - $ - $ 329,368
Mutual funds 642,350 - - 642,350
Total at fair value $ 971,718 $ - $ - $ 971,718
See independent accountants’ review report.
-11-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
5 CONTRACTS RECEIVABLE
Contracts receivable consists of the following at December 31, 2017:
Completed contracts $ 16,620
Contracts in progress 2,073,313
Unbilled 2,002
2,091,935
Retentions:
Contracts in progress 458,666
$ 2,550,601
Substantially all the retained receivables at December 31, 2017 are expected to be collected
within one year.
6 COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
Costs and estimated earnings on uncompleted contracts accounted for by using the
percentage-of-completion method consist of the following at December 31, 2017:
Costs incurred on uncompleted contracts $ 43,043,763
Estimated earnings 2,251,881
45,295,644
Less: Billings to date 45,681,453
$ (385,809)
This amount is included in the accompanying balance sheet under the following captions at
December 31, 2017:
Costs and estimated earnings in excess of
billings on uncompleted contracts
$ 95,311
Billings in excess of costs and estimated
earnings on uncompleted contracts
(481,120)
$ (385,809) See independent accountants’ review report.
-12-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
7 PROPERTY AND EQUIPMENT, NET
Property and equipment consists of the following at December 31, 2017:
Office furniture and equipment $ 110,991
Transportation equipment 125,645
Leasehold improvements 16,787
253,423
Less: Accumulated depreciation 221,825
$ 31,598
Depreciation charged to income amounted to $12,202 for the year ended December 31, 2017.
8 ACCOUNTS PAYABLE
Accounts payable include amounts due to subcontractors, totaling $475,126 at December 31,
2017, which have been retained pending completion and customer acceptance of jobs.
9 RELATED PARTY TRANSACTIONS
The Company leases its corporate office and a storage warehouse from an affiliate, under two
separate leases, (see Note 10). The office lease expired on December 31, 2017 and was
renewed for an additional three years ending December 31, 2020. The office lease has an
option to renew at a rate increase not exceeding 7% per annum. The minimum annual rental
for the lease is $81,240 and is payable in monthly installments of $6,770, including sales tax.
Rent paid to this affiliate for the year ended December 31, 2017 aggregated $81,240.
Future minimum lease payments under this operating lease are as follows:
Years ending December 31, 2018 $ 81,240
2019 81,240
2020 81,240
$ 243,720
See independent accountants’ review report.
-13-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
9 RELATED PARTY TRANSACTIONS (continued)
The storage warehouse lease expired on December 31, 2017 and was renewed for an
additional twelve months beginning January 1, 2018 through December 31, 2018. The
warehouse lease has an option to renew at a rate increase not exceeding 10% per annum for
two additional years. The minimum annual rental for the lease is $15,600 and is payable in
monthly installments of $1,300, including sales tax. Rent to this affiliate for the year ended
December 31, 2017 aggregated $15,600.
Included in contract costs and revenues for the year ended December 31, 2017, is
approximately $13,500 for work performed for a related party and is included in the
completed contracts schedule under Miscellaneous and previously closed jobs.
10 GUARANTEES
The Company is a guarantor on behalf of TGSV, LLC, an affiliate and landlord of the real
estate leased by the Company as more fully described in Note 9. The guarantee is for the
mortgage on the real estate owned by the affiliate with an outstanding balance at December
31, 2017 of $741,803.
In addition, the affiliate has obtained a line of credit in the amount of $800,000 encumbered
by the real estate and guaranteed by the Company. There have been no advances on the line
at December 31, 2017.
11 CONCENTRATIONS OF CREDIT RISK
Financial instruments, which potentially subject the Company to concentrations of credit
risk, consist principally of contracts receivable. Revenues earned during the year ended
December 31, 2017, resulting from contract work performed for one customer, accounted for
approximately 26% of total revenues. Contracts receivable from this customer amounted to
approximately $1,510,000 as of December 31, 2017, of which approximately $637,500 has
been collected subsequent to the balance sheet date.
See independent accountants’ review report.
-14-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
12 BACKLOG
The following schedule shows a reconciliation of backlog representing the amount of
revenue the Company expects to be realized in future periods from signed contracts at
December 31, 2017:
Backlog at December 31, 2016 $ 6,436,596
New contracts, change orders and adjustments to contracts 28,979,373
Less: Contract revenues earned for the year
December 31, 2017
14,693,367
Backlog at December 31, 2017 $ 20,722,602
The Company has a contract as of December 31, 2017, amounting to $138,000 for which
work had not commenced. In addition, during the period from January 1, 2018 to February
22, 2018, the Company signed a contract amounting to approximately $58,100.
The Company is generally required to furnish performance and payment surety bonds to
contract owners. The bonds are secured by receivables from bonded contracts and a general
guarantee from the Company. During the year ended December 31, 2017, the Surety
Company issued approximately $17,801,000 of new bonds to contract owners.
At December 31, 2017, surety bonds for contracts approximating $39,115,000 had been
issued with a current estimated backlog amount of $14,261,000.
Of the $20,722,602 backlog amount, approximately $16,150,000 has been subcontracted to
various specialty subcontractors. The Company’s policy requires a surety bond from certain
subcontractors for contracts in excess of $300,000, or at management’s discretion. At
December 31, 2017, surety bonds from subcontractors aggregated approximately $8,724,100.
No accrued liability was considered necessary by management for financial guarantees
related to the non-bonded subcontractors.
The Surety Company requires a general agreement of indemnification from the Company’s
stockholders.
See independent accountants’ review report.
-15-
TGSV ENTERPRISES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
13 INCOME TAXES
For the year ended December 31, 2017, estimated taxable income passed through to the
stockholders aggregated approximately $397,000.
14 CLAIMS AND CONTINGENCIES
From time to time, the Company is involved in routine claims arising in the ordinary course
of business. There are no pending significant legal proceedings to which the Company is a
party for which management believes that the ultimate outcome would have a material
adverse effect on the financial position, results of operations or cash flows of the Company.
The Company is contingently liable to a surety company under a general indemnity
agreement. The Company agrees to indemnify the surety for any payments made on contracts
of suretyship, guaranty, or indemnity. The Company believes that all contingent liabilities
will be satisfied by their performance on the specific bonded contracts.
See independent accountants’ review report.
-16-
SUPPLEMENTARY INFORMATION
-17-
INDEPENDENT ACCOUNTANTS’ REVIEW REPORT
ON SUPPLEMENTARY INFORMATION
To the Board of Directors
TGSV Enterprises, Inc.
Hialeah, Florida
Our report on our review of the basic financial statements of TGSV Enterprises, Inc. for the year
ended December 31, 2017 appears on page 1. The objective of that review was to perform
procedures to obtain limited assurance as a basis for reporting whether we were aware of any
material modifications that should be made to the financial statements for them to be in
accordance with accounting principles generally accepted in the United States of America. The
supplementary information included in the accompanying Schedules I, II, III and IV on pages 19
through 22 is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from,
and relates directly to, the underlying accounting and other records used to prepare the financial
statements. The supplementary information has been subjected to the review procedures applied
in our review of the basic financial statements. We are not aware of any material modifications
that should be made to the supplementary information. We have not audited the supplementary
information and, accordingly, do not express an opinion on such information.
CERTIFIED PUBLIC ACCOUNTANTS
February 22, 2018
Coral Gables, Florida
-18-
See independent accountants’ review report
on supplementary information.
-19-
Advertising and marketing 125,014$
Auto 42,490
Computer support 20,556
Contributions 2,125
Depreciation 12,202
Dues and subscriptions 1,592
Education and seminars 498
Equipment rental 15,095
Estimating 20,297
Insurance 241,742
Licenses and taxes 1,149
Meals and entertainment 20,443
Office 18,731
Postage 5,419
Professional fees 86,009
Rent 96,840
Repairs and maintenance 21,821
Salaries and taxes 507,084
Telephone 12,048
1,251,155$
TGSV ENTERPRISES, INC.
SCHEDULE I - GENERAL AND ADMINISTRATIVE EXPENSES
YEAR ENDED DECEMBER 31, 2017
See independent accountants’ review report
on supplementary information.
-20-
Revenues Cost of Gross
Earned Revenues Profit
Contracts in Progress 12,599,367$ 11,555,017$ 1,044,350$
Completed Contracts 2,094,000 1,601,873 492,127
14,693,367$ 13,156,890$ 1,536,477$
TGSV ENTERPRISES, INC.
SCHEDULE II - EARNINGS FROM CONTRACTS
YEAR ENDED DECEMBER 31, 2017
See independent accountants’ review report
on supplementary information.
- 21 -
REVENUES ESTIMATED REVENUES COST OF GROSS BILLED ESTIMATED COSTS IN BILLINGS REVENUES COST OF GROSS
GROSS EARNED REVENUES PROFIT TO DATE COST TO EXCESS OF IN EXCESS EARNED REVENUES PROFIT
PROFIT COMPLETE BILLINGS OF COSTS
1303 Pre-Trial Detention Center 8,297,070$ 135,000$ 8,246,301$ 8,112,127$ 134,174$ 8,276,651$ 49,943$ -$ (30,350)$ 929,396$ 806,211$ 123,185$
1414 Design 41 10,649,361 330,000 10,535,782 10,209,302 326,480 10,649,902 110,059 - (114,120) 1,821,045 1,754,665 66,380
1501 St. George Townhouse 10,156,023 332,429 10,137,862 9,806,027 331,835 10,156,023 17,567 - (18,161) 1,987,038 1,949,833 37,205
1504 U-Haul -Pompano 8,237,051 844,136 8,157,962 7,321,931 836,031 8,237,051 70,984 - (79,089) 1,269,942 977,823 292,119
1601 UM - Cancer Center Offices - Fox Bldg 1,118,885 86,126 1,109,620 1,024,207 85,413 1,118,885 8,552 - (9,265) 315,510 281,796 33,714
1606 UM - BPEI - Lower Level CT 1,248,483 63,096 1,206,384 1,145,416 60,968 1,235,719 39,971 - (29,335) 412,162 394,969 17,193
1607 UM - BPEI - Exterior Upgrade Gate 152,065 7,849 149,004 141,313 7,691 152,065 2,903 - (3,061) 111,545 106,280 5,265
1702 Mary Street Office 17,800,923 655,000 3,756,265 3,618,050 138,215 3,850,591 13,527,873 - (94,326) 3,756,265 3,618,050 138,215
1704 Trane Distribution Warehouse 3,126,357 134,683 272,353 260,620 11,733 357,541 2,731,054 - (85,188) 272,353 260,620 11,733
1706 Doral Modern Improvements 837,828 237,940 835,114 597,945 237,169 835,375 1,943 - (261) 835,114 597,945 237,169
1707 Jakson Health Sys. - West Campus-Prec 10,652 5,470 10,136 4,931 5,205 10,652 251 - (516) 10,136 4,931 5,205
1709 Morrison Meat Packers 1,916,076 98,056 145,159 137,730 7,429 77,233 1,680,290 67,926 - 145,159 137,730 7,429
1710 Turkel Workout Spot Relocation 397,648 45,086 385,626 341,903 43,723 396,648 10,659 - (11,022) 385,626 341,903 43,723
1712 MSMC - CT Suite Renovation 849,647 67,329 261,784 241,039 20,745 268,210 541,279 - (6,426) 261,784 241,039 20,745
1713 MSMC - AHU #4 Replacement 772,877 45,364 85,911 80,868 5,043 58,907 646,645 27,004 - 85,911 80,868 5,043
1715 Center for Excellance Eye Care 447,300 32,220 381 354 27 - 414,726 381 - 381 354 27
66,018,246$ 3,119,784$ 45,295,644$ 43,043,763$ 2,251,881$ 45,681,453$ 19,854,699$ 95,311$ (481,120)$ 12,599,367$ 11,555,017$ 1,044,350$
TGSV ENTERPRISES, INC.
SCHEDULE III - CONTRACTS IN PROGRESS
DECEMBER 31, 2017
FROM INCEPTION
AT DECEMBER 31, 2017
FOR THE YEAR ENDED
TOTAL CONTRACT TO DECEMBER 31, 2017 DECEMBER 31, 2017
See independent accountants’ review report
on supplementary information.
- 22 -
REVENUES COST OF GROSS REVENUES COST OF GROSS REVENUES COST OF GROSS
EARNED REVENUES PROFIT EARNED REVENUES PROFIT EARNED REVENUES PROFIT
(LOSS) (LOSS) (LOSS)
1307 Cuban Museum 3,497,459$ 3,486,466$ 10,993$ 3,480,402$ 3,484,560$ (4,158)$ 17,057$ 1,906$ 15,151$
1323 BJ's Wholesale 5,890,823 5,670,403 220,420 5,796,517 5,579,627 216,890 94,306 90,776 3,530
1506 Summerhill's Sales Office 906,767 677,265 229,502 676,632 602,416 74,216 230,135 74,849 155,286
1507 BHSF - Homestead Hospital 1,151,168 1,026,903 124,265 1,130,472 1,027,360 103,112 20,696 (457) 21,153
1508 UM - BPEI Corneal Eye 310,158 243,210 66,948 244,831 230,294 14,537 65,327 12,916 52,411
1510 MSMC - 1.5 MRI Relocation 1,299,073 1,167,731 131,342 1,283,331 1,153,730 129,601 15,742 14,001 1,741
1602 UM - CRB - Urology Dept.455,343 407,924 47,419 434,890 407,744 27,146 20,453 180 20,273
1603 BHSF - SMH - 4th Floor Corridor 1,639,720 1,497,023 142,697 821,662 761,358 60,304 818,058 735,665 82,393
1604 UM - BPEI - Pediatric Clinic 481,598 418,921 62,677 422,539 402,071 20,468 59,059 16,850 42,209
1611 Mt. Sinai - Greenspan Room 530,245 488,073 42,172 7,404 6,672 732 522,841 481,401 41,440
1705 UM - BPEI - Food Service Foundation 119,957 113,897 6,060 - - - 119,957 113,897 6,060
Var Miscellaneous & Previously Closed Jobs 363,743 308,054 55,689 253,374 248,165 5,209 110,369 59,889 50,480
16,646,054$ 15,505,870$ 1,140,184$ 14,552,054$ 13,903,997$ 648,057$ 2,094,000$ 1,601,873$ 492,127$
TGSV ENTERPRISES, INC.
SCHEDULE IV - COMPLETED CONTRACTS
DECEMBER 31, 2017
FOR THE YEAR ENDED
CONTRACT TO DATE BEFORE JANUARY 1, 2017 DECEMBER 31, 2017