With this new project, KSW’s backlog remains at approximately 139 million dollars, which does not include the construction costs on projects where the Company is providing pre-construction services.
I spoke to KSW's general counsel, Jim Oliviero, this morning to clarify why the backlog remained unchanged. He said that KSW hadn't had any cancellations in its backlog, but had worked off some of the backlog since last quarter. Oliviero also reiterated that the company is keeping an eye out for potential acquisitions.
At yesterday's closing price of $4.62 per share, KSW was trading at 7.61x its trailing twelve months' earnings. The company has a market cap of about $29 million with $18 million in cash and no long term debt, and its current backlog is about 1.7x its revenue over the last twelve months. KSW may be adversely affected if the economic slowdown hits the NYC construction market, but its balance sheet and backlog could help it get through a lean period.
The company also could be positioned to benefit if a new economic stimulus package includes funds for local infrastructure projects, since KSW's CEO sits on the Metropolitan Transportation Authority's Blue Ribbon Panel on Construction Excellence which provides "guidance to the MTA as it pursues its ambitious capital construction program" and the New York City Department of Environmental Protection's Blue Ribbon Panel on Construction Costs, which provides "guidance to the DEP on its capital construction program."