Visionary Holdings, Inc. Q2 FY2020 earnings call

• Demand for services remained strong in the second quarter amid the health and economic environment.
• Successful service line expansion contributed to a 19% increase in electrical construction revenue quarter-over-quarter.
• Electrical construction margin grew 420 basis points year-over-year and 340 basis points over the first quarter.
• Increased MSA project activity driven by near record backlog, providing strong opportunities in the second half of 2020.
• Sincere thanks to employees for their commitment and resilience during challenging times, with pandemic plans and work from home policies effective.
• Continued cooperation with customers to meet safety requirements, with no material adverse impacts on workforce due to COVID-19.

Electrical Construction: In the second quarter of 2020, electrical construction revenue was $46.7 million, a 19% increase from $39.2 million in the same period of 2019. The gross margin on electrical construction operations increased to 18.7% from 14.5% year-over-year, primarily due to increased transmission project activity at higher margins. Real Estate Development: Revenue from real estate development operations decreased to $1.1 million in Q2 2020 from $5.2 million in Q2 2019, mainly due to fewer units sold and timing of unit completions.

• Target mid to high teens profit margins.
• Emphasize looking at the company over a longer period rather than quarter-to-quarter.
• MSAs are multiyear, with lumps and estimates based on customer discussions, experience, and workflow.

Q: Are there any large contracts being bid on that could be signed soon?

A: We're always pursuing contracts, but large ones rumored aren't seen yet.

Q: Any consideration of changing the company name to Power Corporation of America?

A: Thought about it, board will consider again.

Q: Backlog decreased, are jobs being bid to increase backlog?

A: Some large increase due to 4 new MSAs; continuing to bid and add work, backlog changes based on projections and estimates.

Q: Will profit margins maintain or improve?

A: Target mid to high teens, encouraged by improved margins and teammates' hard work.

Q: Pipeline of new business and Texas growth?

A: Significant backlog, continuing to broaden geographical reach, service line expansion in Texas opening doors to new customers, expanding into Kentucky, Arkansas, Oklahoma, etc., and foundation side looking at 5G tower work if opportunity arises.

Q: Clarity on revenue lines with backlog changes?

A: MSAs are multiyear, estimates based on customer discussions and experience, oldest MSA goes out to 2025, continuing to bid and add work.