Bud Leedom's questions to Visionary Holdings (GV) leadership • Q3 2020
Question
Bud Leedom, a private investor, asked about the company's gross margin trends, questioning why current margins, while improving, are significantly below historical highs. He also sought to reconcile the 105% year-over-year increase in total backlog with the more modest revenue growth and inquired about the company's plans for the permanent leadership structure and the Co-CEO roles.
Answer
Acting Co-CEO and CFO Steve Wherry explained that the company now aims for mid-to-high teen gross margins, attributing past higher margins to occasional "home run" projects. He clarified that total backlog can span many years, making the 12-month backlog a better near-term indicator. Regarding the CEO role, he stated the Board is actively discussing the permanent leadership structure. Acting Co-CEO Jason Spivey added that the market is very competitive, which impacts margins.