Delaware | 47-4787177 | |||
(State or Other Jurisdiction of Incorporation) | (IRS Employer Identification No.) |
6325 Digital Way Suite 460 Indianapolis, Indiana | 46278 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbols(s) | Name of exchange on which registered | ||
Common Stock, $0.0001 par value | IEA | The NASDAQ Stock Market LLC | ||
Warrants for Common Stock | IEAWW | The NASDAQ Stock Market LLC |
Infrastructure and Energy Alternatives, Inc. | ||
Table of Contents | ||
PART I. FINANCIAL INFORMATION | ||
Part II. OTHER INFORMATION | ||
March 31, 2020 | December 31, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | 58,081 | 147,259 | |||||
Accounts receivable, net | 154,699 | 203,645 | |||||
Contract assets | 193,851 | 179,303 | |||||
Prepaid expenses and other current assets | 22,178 | 16,855 | |||||
Total current assets | 428,809 | 547,062 | |||||
Property, plant and equipment, net | 134,753 | 140,488 | |||||
Operating lease asset | 43,444 | 43,431 | |||||
Intangible assets, net | 33,902 | 37,272 | |||||
Goodwill | 37,373 | 37,373 | |||||
Company-owned life insurance | 4,153 | 4,752 | |||||
Deferred income taxes | 14,072 | 12,992 | |||||
Other assets | 492 | 1,551 | |||||
Total assets | $ | 696,998 | $ | 824,921 | |||
Liabilities and Stockholder's Equity (Deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | 110,485 | 177,783 | |||||
Accrued liabilities | 121,445 | 158,103 | |||||
Contract liabilities | 107,253 | 115,634 | |||||
Current portion of finance lease obligations | 23,437 | 23,183 | |||||
Current portion of operating lease obligations | 10,191 | 9,628 | |||||
Current portion of long-term debt | 1,693 | 1,946 | |||||
Total current liabilities | 374,504 | 486,277 | |||||
Finance lease obligations, less current portion | 37,826 | 41,055 | |||||
Operating lease obligations, less current portion | 34,131 | 34,572 | |||||
Long-term debt, less current portion | 154,788 | 162,901 | |||||
Debt - Series B Preferred Stock | 175,145 | 166,141 | |||||
Series B Preferred Stock - warrant obligations | 2,200 | 17,591 | |||||
Deferred compensation | 6,593 | 8,004 | |||||
Total liabilities | $ | 785,187 | $ | 916,541 | |||
Commitments and contingencies: | |||||||
Series A Preferred Stock, par value, $0.0001 per share; 1,000,000 shares authorized; 17,483 shares and 17,483 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 17,483 | 17,483 | |||||
Stockholders' equity (deficit): | |||||||
Common stock, par value, $0.0001 per share; 100,000,000 shares authorized; 20,700,555 and 20,460,533 shares issued and 20,648,793 and 20,446,811 outstanding at March 31, 2020 and December 31, 2019, respectively | 2 | 2 | |||||
Treasury stock, 51,762 and 13,722 shares at cost at March 31, 2020 and December 31, 2019, respectively. | (160 | ) | (76 | ) | |||
Additional paid in capital | 33,425 | 17,167 | |||||
Retained earnings (deficit) | (138,939 | ) | (126,196 | ) | |||
Total stockholders' equity (deficit) | (105,672 | ) | (109,103 | ) | |||
Total liabilities and stockholders' equity (deficit) | $ | 696,998 | $ | 824,921 |
Three Months Ended | |||||||
March 31, | |||||||
2020 | 2019 | ||||||
Revenue | $ | 358,163 | $ | 189,781 | |||
Cost of revenue | 325,122 | 184,037 | |||||
Gross profit | 33,041 | 5,744 | |||||
Selling, general and administrative expenses | 29,484 | 27,754 | |||||
Income (loss) from operations | 3,557 | (22,010 | ) | ||||
Other income (expense), net: | |||||||
Interest expense, net | (16,065 | ) | (10,367 | ) | |||
Other expense | (1,102 | ) | (170 | ) | |||
Loss before benefit for income taxes | (13,610 | ) | (32,547 | ) | |||
Benefit for income taxes | 867 | 8,908 | |||||
Net loss | $ | (12,743 | ) | $ | (23,639 | ) | |
Net loss per common share - basic | (0.66 | ) | (1.09 | ) | |||
Net loss per common share - diluted | (0.66 | ) | (1.09 | ) | |||
Weighted average shares - basic | 20,522,216 | 22,188,757 | |||||
Weighted average shares - diluted | 20,522,216 | 22,188,757 |
Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Equity (Deficit) | ||||||||||||||||||||
Shares | Par Value | Shares | Cost | |||||||||||||||||||||
Balance at December 31, 2018 | 22,155 | 2 | 4,751 | — | — | (135,931 | ) | (131,178 | ) | |||||||||||||||
Net loss | — | — | — | — | — | (23,639 | ) | (23,639 | ) | |||||||||||||||
Share-based compensation | — | — | 1,040 | — | — | — | 1,040 | |||||||||||||||||
Share-based payment transaction | 111 | — | 235 | (14 | ) | (76 | ) | — | 159 | |||||||||||||||
Merger recapitalization transaction | — | — | — | — | — | 2,754 | 2,754 | |||||||||||||||||
Cumulative effect from adoption of new accounting standard, net of tax | — | — | — | — | — | 750 | 750 | |||||||||||||||||
Preferred dividends | — | — | (525 | ) | — | — | — | (525 | ) | |||||||||||||||
Balance at March 31, 2019 | 22,266 | $ | 2 | $ | 5,501 | (14 | ) | $ | (76 | ) | $ | (156,066 | ) | $ | (150,639 | ) | ||||||||
Balance at December 31, 2019 | 20,461 | $ | 2 | $ | 17,167 | (14 | ) | $ | (76 | ) | $ | (126,196 | ) | $ | (109,103 | ) | ||||||||
Net loss | — | — | — | — | — | (12,743 | ) | (12,743 | ) | |||||||||||||||
Share-based compensation | — | — | 1,113 | — | — | — | 1,113 | |||||||||||||||||
Share-based payment transactions | 240 | — | 280 | (38 | ) | (84 | ) | — | 196 | |||||||||||||||
Series B Preferred Stock - Warrants at close | — | — | 15,631 | — | — | — | 15,631 | |||||||||||||||||
Preferred dividends | — | — | (766 | ) | — | — | — | (766 | ) | |||||||||||||||
Balance at March 31, 2020 | 20,701 | $ | 2 | $ | 33,425 | (52 | ) | $ | (160 | ) | $ | (138,939 | ) | $ | (105,672 | ) |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (12,743 | ) | $ | (23,639 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 11,888 | 12,017 | |||||
Warrant liability fair value adjustment | 1,057 | — | |||||
Amortization of debt discounts and issuance costs | 2,237 | 1,239 | |||||
Share-based compensation expense | 1,113 | 1,040 | |||||
Deferred compensation | (1,371 | ) | 735 | ||||
Accrued dividends on Series B Preferred Stock | 7,959 | — | |||||
Deferred income taxes | (1,080 | ) | (8,908 | ) | |||
Other, net | 733 | 168 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 48,931 | 82,383 | |||||
Contract assets | (14,548 | ) | (12,405 | ) | |||
Prepaid expenses and other assets | (5,212 | ) | (3,149 | ) | |||
Accounts payable and accrued liabilities | (104,760 | ) | (110,060 | ) | |||
Contract liabilities | (8,381 | ) | 23,032 | ||||
Net cash used in operating activities | (74,177 | ) | (37,547 | ) | |||
Cash flow from investing activities: | |||||||
Company-owned life insurance | 599 | (202 | ) | ||||
Purchases of property, plant and equipment | (2,231 | ) | (1,908 | ) | |||
Proceeds from sale of property, plant and equipment | 1,719 | 47 | |||||
Net cash provided by (used in) investing activities | 87 | (2,063 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 46,000 | 9,400 | |||||
Payments on long-term debt | (55,853 | ) | (16,151 | ) | |||
Payments on finance lease obligations | (5,781 | ) | (4,289 | ) | |||
Sale-leaseback transaction | — | 24,343 | |||||
Proceeds from issuance of stock - Series B Preferred Stock | 350 | — | |||||
Proceeds from stock-based awards, net | 196 | 159 | |||||
Merger recapitalization transaction | — | 2,754 | |||||
Net cash provided by (used in) financing activities | (15,088 | ) | 16,216 | ||||
Net change in cash and cash equivalents | (89,178 | ) | (23,394 | ) | |||
Cash and cash equivalents, beginning of the period | 147,259 | 71,311 | |||||
Cash and cash equivalents, end of the period | $ | 58,081 | $ | 47,917 | |||
Three Months Ended March 31, | |||||
2020 | 2019 | ||||
Supplemental disclosures: | |||||
Cash paid for interest | 6,053 | 9,168 | |||
Cash paid (received) for income taxes | (229 | ) | 190 | ||
Schedule of non-cash activities: | |||||
Acquisition of assets/liabilities through finance lease | 2,806 | — | |||
Acquisition of assets/liabilities through operating lease | 2,732 | 971 | |||
Preferred dividends declared | 766 | 525 |
(in thousands) | Three months ended | |||||||
March 31, 2020 | March 31, 2019 | |||||||
Renewables | ||||||||
Wind | $ | 248,537 | $ | 72,034 | ||||
Solar | 209 | 1,997 | ||||||
$ | 248,746 | $ | 74,031 | |||||
Specialty Civil | ||||||||
Heavy civil | $ | 41,222 | $ | 50,115 | ||||
Rail | 47,057 | 42,609 | ||||||
Environmental | 21,138 | 23,026 | ||||||
$ | 109,417 | $ | 115,750 |
Revenue % | |||||||||
Three months ended | Accounts Receivable % | ||||||||
2020 | 2019 | March 31, 2020 | December 31, 2019 | ||||||
Company A (Specialty Civil Segment) | * | 21.1 | % | * | * | ||||
Company B (Renewable Segment) | * | 11.9 | % | * | * | ||||
Company C (Renewables Segment) | 11.5 | % | * | * | * | ||||
Company D (Renewables Segment) | 11.1 | % | * | * | * |
• | costs and estimated earnings in excess of billings, which arise when revenue has been recorded but the amount has not been billed; and |
• | retainage amounts for the portion of the contract price billed by us for work performed but held for payment by the customer as a form of security until we reach certain construction milestones or complete the project. |
(in thousands) | March 31, 2020 | December 31, 2019 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 106,285 | $ | 91,543 | |||
Retainage receivable | 87,566 | 87,760 | |||||
193,851 | 179,303 |
(in thousands) | March 31, 2020 | December 31, 2019 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | $ | 107,207 | $ | 115,570 | |||
Loss on contracts in progress | 46 | 64 | |||||
$ | 107,253 | $ | 115,634 |
Three Months Ended | |||||||
March 31, | |||||||
(in thousands) | 2020 | 2019 | |||||
Allowance for doubtful accounts at beginning of period | $ | 75 | $ | 42 | |||
Plus: provision for (reduction in) allowance | 14 | 30 | |||||
Less: write-offs, net of recoveries | — | — | |||||
Allowance for doubtful accounts at period end | $ | 89 | $ | 72 |
(in thousands) | March 31, 2020 | December 31, 2019 | |||||
Buildings and leasehold improvements | $ | 3,051 | $ | 2,919 | |||
Land | 17,600 | 17,600 | |||||
Construction equipment | 175,707 | 173,434 | |||||
Office equipment, furniture and fixtures | 3,537 | 3,487 | |||||
Vehicles | 5,375 | 6,087 | |||||
205,270 | 203,527 | ||||||
Accumulated depreciation | (70,517 | ) | (63,039 | ) | |||
Property, plant and equipment, net | $ | 134,753 | $ | 140,488 |
(in thousands) | Renewables | Specialty Civil | Total | ||||||||
January 1, 2019 | $ | 3,020 | $ | 37,237 | $ | 40,257 | |||||
Acquisition adjustments | — | (2,884 | ) | (2,884 | ) | ||||||
December 31, 2019 | $ | 3,020 | $ | 34,353 | $ | 37,373 | |||||
Adjustments | — | — | — | ||||||||
March 31, 2020 | $ | 3,020 | $ | 34,353 | $ | 37,373 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||||||||||
Customer relationships | $ | 26,500 | $ | (5,642 | ) | $ | 20,858 | 5.75 years | $ | 26,500 | $ | (4,695 | ) | $ | 21,805 | 6 years | |||||||||||
Trade name | 13,400 | (3,990 | ) | 9,410 | 3.75 years | 13,400 | (3,305 | ) | 10,095 | 4 years | |||||||||||||||||
Backlog | 13,900 | (10,266 | ) | 3,634 | 9 months | 13,900 | (8,528 | ) | 5,372 | 1 year | |||||||||||||||||
$ | 53,800 | $ | (19,898 | ) | $ | 33,902 | $ | 53,800 | $ | (16,528 | ) | $ | 37,272 |
(in thousands) | Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||
Amortization expense | $ | 11,837 | $ | 6,466 | $ | 6,466 | $ | 5,841 | $ | 3,785 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Series B Preferred Stock - Series A Conversion Warrants and Exchange Warrants | $ | — | $ | — | $ | 1,800 | $ | 1,800 | $ | — | $ | — | $ | 4,317 | $ | 4,317 | |||||||||||||||
Series B-1 Preferred Stock - Additional 6% Warrants | — | — | 400 | 400 | — | — | 400 | 400 | |||||||||||||||||||||||
Series B-3 Preferred - Closing Warrants | — | — | — | — | — | — | 11,491 | 11,491 | |||||||||||||||||||||||
Rights Offering | — | — | — | — | — | — | 1,383 | 1,383 | |||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 2,200 | $ | 2,200 | $ | — | $ | — | $ | 17,591 | $ | 17,591 |
(in thousands) | Series B Preferred - Series A Conversion Warrants and Exchange Warrants | Series B-1 Preferred Stock - Additional 6% Warrants | Series B-3 Preferred - Closing Warrants | Rights Offering | |||||||||||
Beginning Balance, December 31, 2019 | $ | 4,317 | $ | 400 | $ | 11,491 | $ | 1,383 | |||||||
Fair value adjustment - (gain) loss recognized in other income | (91 | ) | — | 1,677 | (1,383 | ) | |||||||||
Transfer to non-recurring fair value instrument (equity) | (2,426 | ) | — | (13,168 | ) | — | |||||||||
Ending Balance, March 31, 2020 | $ | 1,800 | $ | 400 | $ | — | $ | — |
(in thousands) | March 31, 2020 | December 31, 2019 | |||
Term loan | 173,345 | 182,687 | |||
Commercial equipment notes | 3,946 | 4,456 | |||
Total principal due for long-term debt | 177,291 | 187,143 | |||
Unamortized debt discount and issuance costs | (20,810 | ) | (22,296 | ) | |
Less: Current portion of long-term debt | (1,693 | ) | (1,946 | ) | |
Long-term debt, less current portion | 154,788 | 162,901 | |||
Debt - Series B Preferred Stock | 188,755 | 180,444 | |||
Unamortized debt discount and issuance costs | (13,610 | ) | (14,303 | ) | |
Long-term Series B Preferred Stock | 175,145 | 166,141 |
(in thousands) | Maturities | ||
Remainder of 2020 | $ | 1,365 | |
2021 | 1,228 | ||
2022 | 15,859 | ||
2023 | 29,735 | ||
2024 | 129,104 | ||
Thereafter | — | ||
Total contractual obligations | $ | 177,291 |
(in thousands) | |||
Remainder of 2020 | $ | 20,035 | |
2021 | 22,344 | ||
2022 | 18,302 | ||
2023 | 4,108 | ||
2024 | 628 | ||
Thereafter | 157 | ||
Future minimum lease payments | 65,574 | ||
Less: Amount representing interest | 4,311 | ||
Present value of minimum lease payments | 61,263 | ||
Less: Current portion of finance lease obligations | 23,437 | ||
Finance lease obligations, less current portion | $ | 37,826 |
(in thousands) | |||
Remainder of 2020 | $ | 9,784 | |
2021 | 11,242 | ||
2022 | 8,846 | ||
2023 | 6,220 | ||
2024 | 3,116 | ||
Thereafter | 20,461 | ||
Future minimum lease payments | 59,669 | ||
Less: Amount representing interest | 15,347 | ||
Present value of minimum lease payments | 44,322 | ||
Less: Current portion of operating lease obligations | 10,191 | ||
Operating lease obligations, less current portion | $ | 34,131 |
Three months ended | ||||||
March 31, 2020 | March 31, 2019 | |||||
Finance Lease cost: | ||||||
Amortization of right-of-use assets | 5,697 | 5,008 | ||||
Interest on lease liabilities | 1,186 | 1,650 | ||||
Operating lease cost | 3,478 | 1,831 | ||||
Short-term lease cost | 21,635 | 8,496 | ||||
Variable lease cost | 960 | 191 | ||||
Sublease Income | (33 | ) | (24 | ) | ||
Total lease cost | $ | 32,923 | $ | 17,152 | ||
Other information: | ||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||
Operating cash flows from finance leases | $ | 1,186 | $ | 1,650 | ||
Operating cash flows from operating leases | $ | 3,342 | $ | 3,247 | ||
Weighted-average remaining lease term - finance leases | 2.73 years | 3.36 years | ||||
Weighted-average remaining lease term - operating leases | 8.02 years | 9.94 years | ||||
Weighted-average discount rate - finance leases | 6.49 | % | 6.70 | % | ||
Weighted-average discount rate - operating leases | 7.14 | % | 6.89 | % |
Three Months Ended | |||||
March 31, | |||||
($ in thousands, except per share data) | 2020 | 2019 | |||
Numerator: | |||||
Net loss | (12,743 | ) | (23,639 | ) | |
Less: Convertible Preferred Stock dividends | (766 | ) | (524 | ) | |
Net loss available to common stockholders | (13,509 | ) | (24,163 | ) | |
Denominator: | |||||
Weighted average common shares outstanding - basic and diluted | 20,522,216 | 22,188,757 | |||
Anti-dilutive: (1)(2) | |||||
Convertible Series A Preferred | 6,553,041 | 5,045,149 | |||
Series B Preferred - Warrants at closing | 7,675,325 | — | |||
RSUs | 1,456,359 | 354,106 | |||
Basic EPS | (0.66 | ) | (1.09 | ) | |
Diluted EPS | (0.66 | ) | (1.09 | ) |
(1) | As of March 31, 2020 and 2019, publicly traded warrants to purchase 8,480,000 shares of common stock at $11.50 per share were not considered as dilutive as the warrants’ exercise price was greater than the average market price of the common stock during the period. |
(2) | As of March 31, 2020 and 2019, there were 591,860 and 646,405 of vested and unvested Options and 141,248 and 169,494 unvested RSUs, respectively. These were also not considered as dilutive as the respective exercise price or average stock price required for vesting of such awards was greater than the average market price of the common stock during the period. |
• | Heavy civil construction services such as high-altitude road and bridge construction, specialty paving, industrial maintenance and other local, state and government projects. |
• | Environmental remediation services such as site development, environmental site closure and outsourced contract mining and coal ash management services. |
• | Rail Infrastructure services such as planning, creation and maintenance of infrastructure projects for major railway and intermodal facilities construction. |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2020 | 2019 | |||||||||
Segment | Revenue | % of Total Revenue | Revenue | % of Total Revenue | |||||||
Renewables | $ | 248,746 | 69.5 | % | $ | 74,031 | 39.0 | % | |||
Specialty Civil | 109,417 | 30.5 | % | 115,750 | 61.0 | % | |||||
Total revenue | $ | 358,163 | 100.0 | % | $ | 189,781 | 100.0 | % |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2020 | 2019 | |||||||||
Segment | Gross Profit | Gross Profit Margin | Gross Profit | Gross Profit Margin | |||||||
Renewables | $ | 25,829 | 10.4 | % | $ | 1,163 | 1.6 | % | |||
Specialty Civil | 7,212 | 6.6 | % | 4,581 | 4.0 | % | |||||
Total gross profit | $ | 33,041 | 9.2 | % | $ | 5,744 | 3.0 | % |
Type of Equity | Holder | Ownership Percentage | |
Series A Preferred, Series A Conversion Warrants and Exchange Warrants, Series B-3 Preferred Stock (exchange agreement) | Infrastructure and Energy Alternatives, LLC | 100 | % |
Series B-1 Preferred Stock, Series A Conversion Warrants, Additional 6% Warrants, Warrants at closing | Ares | 60 | % |
Oaktree Power Opportunities Fund III Delaware, L.P. | 40 | % | |
2020 Commitment | Ares | 50 | % |
Oaktree Power Opportunities Fund III Delaware, L.P. | 50 | % | |
Series B-2 and B-3 Preferred Stock, Warrants at closing | Ares | 100 | % |
• | potential risks and uncertainties relating to the ultimate impact of COVID-19, including the geographic spread, the severity of the disease, the duration of the COVID-19 pandemic, actions that may be taken by governmental authorities to contain the COVID-19 pandemic or to treat its impact, and the potential negative impacts of COVID-19 on the global economy and financial markets; |
• | availability of commercially reasonable and accessible sources of liquidity and bonding; |
• | our ability to generate cash flow and liquidity to fund operations; |
• | the timing and extent of fluctuations in geographic, weather and operational factors affecting our customers, projects and the industries in which we operate; |
• | our ability to identify acquisition candidates and integrate acquired businesses; |
• | consumer demand; |
• | our ability to grow and manage growth profitably; |
• | the possibility that we may be adversely affected by economic, business, and/or competitive factors; |
• | market conditions, technological developments, regulatory changes or other governmental policy uncertainty that affects us or our customers; |
• | our ability to manage projects effectively and in accordance with management estimates, as well as the ability to accurately estimate the costs associated with our fixed price and other contracts, including any material changes in estimates for completion of projects; |
• | the effect on demand for our services and changes in the amount of capital expenditures by customers due to, among other things, economic conditions, commodity price fluctuations, the availability and cost of financing, and customer consolidation; |
• | the ability of customers to terminate or reduce the amount of work, or in some cases, the prices paid for services, on short or no notice; |
• | customer disputes related to the performance of services; |
• | disputes with, or failures of, subcontractors to deliver agreed-upon supplies or services in a timely fashion; |
• | our ability to replace non-recurring projects with new projects; |
• | the impact of U.S. federal, local, state, foreign or tax legislation and other regulations affecting the renewable energy industry and related projects and expenditures; |
• | the effect of state and federal regulatory initiatives, including costs of compliance with existing and future safety and environmental requirements; |
• | fluctuations in maintenance, materials, labor and other costs; |
• | our beliefs regarding the state of the renewable wind energy market generally; and |
• | the “Risk Factors” described in our Annual Report on Form 10-K for the year ended December 31, 2019, and in our quarterly reports, other public filings and press releases. |
• | Heavy civil construction services such as high-altitude road and bridge construction, specialty paving, industrial maintenance and other local, state and government projects. |
• | Environmental remediation services such as site development, environmental site closure and outsourced contract mining and coal ash management services. |
• | Rail Infrastructure services such as planning, creation and maintenance of infrastructure projects for major railway and intermodal facilities construction. |
• | We established a dedicated COVID-19 task force representing all parts of the Company to review and implement actions to prepare for the impacts on our operations, including a variety of protocols in the areas of social distancing, working from home, emergency office and project site closures, and travel restrictions. |
• | In addition to our existing site crisis management plans, our operations expanded and implemented their pandemic response plans to ensure a consistent, comprehensive response to various COVID-19 scenarios. |
• | We implemented more stringent office and project site cleaning and hygiene protocols in all locations. We also developed more stringent tool, vehicle and equipment cleaning protocols. |
• | For employees, we established a regularly updated COVID-19 information hub with FAQs, important communications, regularly updated protocols, business planning tools, best practices, signage/flyers and other important resources. |
• | We have significantly increased communications, signage and oversight of personal hygiene requirements to drive better prevention practices. |
• | We postponed social gatherings, large in-person training sessions and other activities involving groups of 10 or more. |
• | We have prohibited virtually all Company air travel unless approved by executive leadership. We have also required all employees to report their personal travel schedules so we can closely monitor and take any necessary steps to maintain the safety of our workforce. |
• | We have increased our efforts to reduce SG&A expenses by implementing a hiring freeze, delaying the Company 401(k) match until later in the year, prohibiting all non-essential travel, reducing new initiatives, deferring promotions and salary changes, and canceling any non-essential capital expenditures or consulting work. |
• | To mitigate the effects of working from home and travel bans, we have significantly increased the use of remote communication technologies. |
• | changes to our customers’ capital spending plans; |
• | mergers and acquisitions among the customers we serve; |
• | access to capital for customers in the industries we serve; |
• | changes in tax and other incentives; |
• | new or changing regulatory requirements or other governmental policy uncertainty; |
• | economic, market or political developments; and |
• | changes in technology. |
• | Technological advances in turbines sizes and battery storage continue to drive lower costs of electricity generated from wind and solar farms; |
• | Approximately 40 states, as well as the District of Columbia and four territories, have adopted renewable portfolio standards or goals strengthening the backing for clean energy; and |
• | The Annual Energy Outlook 2020 published by the U.S. Department of Energy (“DOE”) in January 2020 projected the addition of approximately 117 gigawatts of new utility-scale wind and solar capacity from 2020 to 2023. We estimate that EPC services will account for approximately 30% of the estimated $28.4 billion of construction over that time period. |
• | Reduction of owner financing related to the current COVID-19 environment which could cause delays or cancellations of future projects; and |
• | Market price declines on natural gas and other energy products that undercut the immediate demand for increased renewable infrastructure. |
• | Heavy civil - the FMI 2020 Overview Report published in the fourth quarter of 2019 project that nonresidential construction put in place for the United States will be over $850 million per year from 2020 to 2023. |
• | Rail - Fostering Advancements in Shipping And Transportation For The Long-Term Achievement of National Efficiencies (FASTLANE) grants are expected to provide $4.5 billion through 2020 to freight and highway projects of national or regional significance. |
• | Environmental remediation - According to the American Coal Ash Association, more than 102.3 million tons of coal ash was generated in 2018 and 42% of coal ash generated was disposed of. |
• | Decrease in demand for civil construction resulting from corresponding decreases in state departments of transportation budgets from lack of revenues due to quarantine. |
• | Reduction of future pipeline opportunities in certain portions of the U.S. related to further impact of COVID-19. |
Three Months Ended March 31, | ||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||
Revenue | $ | 358,163 | 100.0 | % | $ | 189,781 | 100.0 | % | ||||
Cost of revenue | 325,122 | 90.8 | % | 184,037 | 97.0 | % | ||||||
Gross profit | 33,041 | 9.2 | % | 5,744 | 3.0 | % | ||||||
Selling, general and administrative expenses | 29,484 | 8.2 | % | 27,754 | 14.6 | % | ||||||
Income from operations | 3,557 | 1.0 | % | (22,010 | ) | (11.6 | )% | |||||
Interest expense, net | (16,065 | ) | (4.5 | )% | (10,367 | ) | (5.5 | )% | ||||
Other expense | (1,102 | ) | (0.3 | )% | (170 | ) | (0.1 | )% | ||||
Income from continuing operations before income taxes | (13,610 | ) | (3.8 | )% | (32,547 | ) | (17.1 | )% | ||||
Benefit for income taxes | 867 | 0.2 | % | 8,908 | 4.7 | % | ||||||
Net income | $ | (12,743 | ) | (3.6 | )% | $ | (23,639 | ) | (12.5 | )% |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2020 | 2019 | |||||||||
Segment | Revenue | % of Total Revenue | Revenue | % of Total Revenue | |||||||
Renewables | $ | 248,746 | 69.5 | % | $ | 74,031 | 39.0 | % | |||
Specialty Civil | 109,417 | 30.5 | % | 115,750 | 61.0 | % | |||||
Total revenue | $ | 358,163 | 100.0 | % | $ | 189,781 | 100.0 | % | |||
Gross Profit | Gross Profit Margin | Gross Profit | Gross Profit Margin | ||||||||
Renewables | $ | 25,829 | 10.4 | % | $ | 1,163 | 1.6 | % | |||
Specialty Civil | 7,212 | 6.6 | % | 4,581 | 4.0 | % | |||||
Total gross profit | $ | 33,041 | 9.2 | % | $ | 5,744 | 3.0 | % |
(in millions) | ||||||
Segments | March 31, 2020 | December 31, 2019 | ||||
Renewables | 1,436.0 | 1,582.5 | ||||
Specialty Civil | 576.6 | 588.7 | ||||
Total | $ | 2,012.6 | $ | 2,171.2 |
Three Months Ended March 31, | ||||||
(in thousands) | 2020 | 2019 | ||||
Net cash used in operating activities | (74,177 | ) | (37,547 | ) | ||
Net cash provided by (used in) investing activities | 87 | (2,063 | ) | |||
Net cash provided by (used in) financing activities | (15,088 | ) | 16,216 |
Payments due by period | ||||||||||||||||||||||||||||
(in thousands) | Total | Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||||||||||||||
Debt (principal) (1) | 366,046 | 1,365 | 1,228 | 15,859 | 29,735 | 129,104 | 188,755 | |||||||||||||||||||||
Debt (interest) (2) | 110,170 | 7,488 | 27,584 | 24,356 | 21,234 | 18,130 | 11,378 | |||||||||||||||||||||
Finance leases (3) | 65,574 | 20,035 | 22,344 | 18,302 | 4,108 | 628 | 157 | |||||||||||||||||||||
Operating leases (4) | 59,669 | 9,784 | 11,242 | 8,846 | 6,220 | 3,116 | 20,461 | |||||||||||||||||||||
Total | $ | 601,459 | $ | 38,672 | $ | 62,398 | $ | 67,363 | $ | 61,297 | $ | 150,978 | $ | 220,751 |
(1) | Represents the contractual principal payment due dates on our outstanding debt, including the convertible debt - Series B Preferred with expected redemption date of February 15, 2025. Future declared dividends have been excluded, as payment determination will be evaluated each quarter resulting in differing accumulated dividend rates. |
(2) | Includes variable rate interest using March 31, 2020 rates. |
(3) | We have obligations, exclusive of associated interest, recognized under various finance leases for equipment totaling $65.6 million at March 31, 2020. Net amounts recognized within property, plant and equipment, net in the condensed consolidated balance sheet under these financed lease agreements at March 31, 2020 totaled $78.5 million. |
(4) | We lease real estate, vehicles, office equipment and certain construction equipment from unrelated parties under non-cancelable leases. Lease terms range from month-to-month to terms expiring through 2038. |
• | Inability to properly staff our construction projects due to quarantines and stay at home orders. |
• | Inabilities of customers to fund project obligations due to liquidity issues. |
• | Termination or delay in project construction at our customers’ discretion due to financial uncertainties. |
• | Inability of, or delays by, our subcontractors to deliver equipment and services. |
• | Restrictions on our ability to obtain new business if our customer base is financially constrained. |
• | Inability to obtain bonding from our sureties due to tightening of credit markets. |
• | Decrease in demand for civil construction resulting from corresponding decreases in federal, state and local budgets. |
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101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
INFRASTRUCTURE AND ENERGY ALTERNATIVES, INC. | ||
Dated: May 7, 2020 | By: | /s/ JP Roehm |
Name: JP Roehm | ||
Title: Chief Executive Officer | ||
Dated: May 7, 2020 | By: | /s/ Peter J. Moerbeek |
Name: Peter J. Moerbeek | ||
Title: Chief Financial Officer | ||
Dated: May 7, 2020 | By: | /s/ Bharat Shah |
Name: Bharat Shah | ||
Title: Chief Accounting Officer |
1. | Amendment to Section 9.18(d). Section 9.18(d) of the Equity Commitment Agreement is hereby amended and restated in its entirety as set forth below: |
2. | Acknowledgment. For the avoidance of doubt, the parties hereto hereby acknowledge and agree that as of the date of this Amendment, the 2020 Commitment Reduction |
3. | Ratification. Except as specifically provided for in this Amendment, the terms of the Equity |
4. | Effect of Amendment. Whenever the Equity Commitment Agreement is referred to in the Equity Commitment Agreement or in any other agreements, documents and instruments, such reference shall be deemed to be to the Equity Commitment Agreement as amended by this Amendment. |
5. | Miscellaneous. Sections 9.1 through 9.8 of the Equity Commitment Agreement shall apply mutatis mutandis to this Amendment. |
INFRASTRUCTURE AND ENERGY ALTERNATIVES, INC. | |
By: /s/ JP Roehm | |
Name: John P. Roehm | |
Title: President and Chief Executive Officer | |
ARES SPECIAL SITUATIONS FUND IV, L.P. | |
By: ASSF Management IV, L.P., its general partner | |
By: ASSF Management IV GP LLC, its general partner | |
By: /s/ Aaron Rosen | |
Name: Aaron Rosen | |
Title: Partner | |
ASOF Holding I, L.P. | |
By: ASOF Management, L.P., its general partner | |
By: ASOF Management GP LLC, its general partner | |
By: /s/ Aaron Rosen | |
Name: Aaron Rosen | |
Title: Partner | |
Notice Information: | |
c/o Ares Management LLC | |
2000 Avenue of the Stars, 12th Floor | |
Los Angeles, CA 90067 | |
Email: sgraves@aresmgmt.com, PI General Counsel@aresmgmt.com | |
Attn: Scott Graves | |
INFRASTRUCTURE AND ENERGY ALTERNATIVES, LLC | |
By: /s/ Ian Schapiro | |
Name: Ian Schapiro | |
Title: Authorized Signatory | |
By: /s/ Peter Jonna | |
Name: Peter Jonna | |
Title: Authorized Signatory | |
Notice Information: | |
333 South Grand Avenue, 28th Floor | |
Los Angeles, CA 90071 | |
Email: ischapiro@oaktreecapital.com, pjonna@oaktreecapital.com |
Attention: Ian Schapiro, Peter Jonna | |
OT POF IEA PREFERRED B AGGREGATOR, L.P. | |
By: OT POF IEA PREFERRED B AGGREGATOR GP, LLC | |
Its: General Partner | |
By: Oaktree Power Opportunities Fund III Delaware, L.P. | |
Its: Managing Member | |
By: Oaktree Power Opportunities Fund III Delaware, L.P. | |
Its: General Partner | |
By: Oaktree Fund GP, LLC | |
Its: General Partner | |
By: Oaktree Fund GP I, L.P. | |
Its: Managing Member | |
By: /s/ Ian Schapiro | |
Name: Ian Schapiro | |
Title: Authorized Signatory | |
By: /s/ Peter Jonna | |
Name: Peter Jonna | |
Title: Authorized Signatory | |
Notice Information: | |
333 South Grand Avenue, 28th Floor | |
Los Angeles, CA 90071 | |
Email: ischapiro@oaktreecapital.com, pjonna@oaktreecapital.com | |
Attention: Ian Schapiro, Peter Jonna | |
OAKTREE POWER OPPORTUNITIES FUND III DELAWARE, L.P. | |
By: Oaktree Power Opportunities Fund III Delaware, L.P. | |
Its: General Partner | |
By: Oaktree Fund GP, LLC | |
Its: General Partner | |
By: Oaktree Fund GP I, L.P. | |
Its: Managing Member | |
By: /s/ Ian Schapiro | |
Name: Ian Schapiro | |
Title: Authorized Signatory | |
By: /s/ Peter Jonna | |
Name: Peter Jonna | |
Title: Authorized Signatory | |
Notice Information: | |
333 South Grand Avenue, 28th Floor | |
Los Angeles, CA 90071 | |
Email: ischapiro@oaktreecapital.com, pjonna@oaktreecapital.com | |
Attention: Ian Schapiro, Peter Jonna |
1. | Purpose |
2. | Participation |
3. | Eligibility |
4. | Determination of Award and Payment |
5. | Objectives and Formulas for Determination of the Bonus Awards |
6. | Miscellaneous |
Dated: May 7, 2020 | By: | /s/ John Paul Roehm |
Name: John Paul Roehm | ||
Title: Chief Executive Officer |
INFRASTRUCTURE AND ENERGY ALTERNATIVES, INC. | ||
Dated: May 7, 2020 | By: | /s/ Peter J. Moerbeek |
Name: Peter J. Moerbeek | ||
Title: Chief Financial Officer |
Dated: May 7, 2020 | By: | /s/ John Paul Roehm |
Name: John Paul Roehm | ||
Title: Chief Executive Officer |
Dated: May 7, 2020 | By: | /s/ Peter J. Moerbeek |
Name: Peter J. Moerbeek | ||
Title: Chief Financial Officer |
Commitments and contingencies - Lease Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Finance Lease, Liability | $ 61,263 | $ 64,200 |
Finance leased assets, gross | 117,900 | 116,100 |
Finance leased assets, accumulated depreciation | (39,400) | (34,000) |
Finance leased assets, net | 78,500 | 82,100 |
Operating Lease, Liability | 44,322 | 44,200 |
Operating Lease, Right-of-Use Asset | 43,444 | $ 43,431 |
Other Commitments, Future Minimum Payments, Remainder of Fiscal Year | $ 3,200 |
Goodwill and Intangible Assets, net (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The following table provides the changes in the carrying amount of goodwill:
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Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consisted of the following as of the dates indicated:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table provides the annual intangible amortization expense currently expected to be recognized for the years 2020 through 2024:
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Earnings per share (Tables) |
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Schedule of basic and diluted EPS | The calculations of basic and diluted EPS, are as follows:
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Property, plant and equipment, net (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
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Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 205,270 | $ 203,527 | |
Accumulated depreciation | (70,517) | (63,039) | |
Property, plant and equipment, net | 134,753 | 140,488 | |
Depreciation expense | 8,516 | $ 8,476 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,051 | 2,919 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 17,600 | 17,600 | |
Construction equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 175,707 | 173,434 | |
Office equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,537 | 3,487 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 5,375 | $ 6,087 |
Business, Basis of Presentation and Significant Accounting Policies Schedule of concentrations for revenue and accounts receivable (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Concentration Company A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 21.10% | |
Concentration Company B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.90% | |
Concentration Company C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.50% | |
Concentration Company D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.10% |
Fair value of financial instruments |
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Fair value of financial instruments | Fair Value of Financial Instruments The Company applies ASC 820, Fair Value Measurement, which establishes a framework for measuring fair value. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. The following table sets forth information regarding the Company's assets measured at fair value on a recurring basis:
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements using Level 3 inputs:
The Company entered into three Equity Commitment agreements at various dates during 2019 with Ares Management, LLC, on behalf of its affiliated funds, investment vehicles and/or managed accounts (“Ares”) and funds managed by Oaktree Capital Management (“Oaktree”). These resulted in Series B-1 Preferred Stock (the “Series B-1 Preferred Stock”), Series B-2 Preferred Stock (the “Series B-2 Preferred Stock”) and Series B-3 Preferred Stock (the “Series B-3 Preferred Stock”) (collectively referred to as “Series B Preferred Stock”). The information below describes the balance sheet classification and the recurring/nonrecurring fair value measurement: Series B Preferred Stock (non-recurring) - The Series B Preferred Stock was a mandatorily redeemable financial instrument under ASC 480 and was recorded at relative fair value as debt which was estimated using a discounted cashflow model based on certain significant unobservable inputs, such as accumulated dividend rates, and projected Adjusted EBITDA for the life of the Series B Preferred Stock. The fair value of the liability for each of the transactions, was a combined $153.7 million and recorded on the balance sheet as debt as of March 31, 2020. Series B Preferred Stock - Warrants at closing (non-recurring) - The Warrants at closing, with an exercise price of $0.0001, represented (on an if-converted to common stock basis) 10% of the issued and outstanding common stock of the Company based on the Company’s fully diluted share count on May 20, 2019 (including the number of shares of common stock that may be issued pursuant to all restricted stock awards, restricted stock units, stock options and any other securities or rights (directly or indirectly) convertible into, exchangeable for or to subscribe for common stock that are outstanding on May 20, 2019 (excluding any shares of common stock issuable (a) pursuant to the merger agreement for our business combination, (b) upon conversion of shares of Series A Preferred Stock, (c) upon the exercise of any warrant with an exercise price of $11.50 or higher or (d) upon the exercise of any equity issued pursuant to the Company’s long term incentive plan or other equity plan with a strike price of $11.50 or higher). The 2,545,934 warrants at closing were valued at the closing stock price of $4.21 on May 20, 2019 which was recorded as additional paid in capital. On August 30, 2019, warrants for 900,000 shares of common stock were issued and were valued at the closing stock price of $3.75 which was recorded as additional paid in capital. On November 14, 2019, warrants for 3,568,750 shares of common stock were issued and were valued at the closing stock price of $2.20 and these were recorded as a liability (Series B-3 Preferred - Closing Warrants) and marked to market at December 31, 2019 at a price of $3.22. On January 21, 2020 the Company received shareholder approval for the warrants and the liability was marked to market at a price of $3.69. Upon shareholder approval, the warrants were moved from liability to equity at a fair value of $13,168 on a non-recurring basis. Series B-3 Exchange Warrants (non-recurring) - On October 29, 2019, the holders of Series A Preferred Stock converted 50% of their shares to Series B Preferred Stock and reduced the number of the potential additional warrants. In the exchange the holders of Series A Preferred Stock were issued warrants for 657,383 shares of common stock at the closing stock price of $2.20 and these were recorded as a liability and marked to market at December 31, 2019 at a price of $3.22. On January 21, 2020 the Company received shareholder approval for the warrants and the liability was marked to market at a price of $3.69. As of March 31, 2020, these warrants reside as part of equity at a fair value of $2,426 on a non-recurring basis. Series B-1 Preferred Stock - Series A Conversion Warrants (recurring) - On May 20, 2019, the conversion rights for the Series A Preferred Stock were amended to allow the holders of Series A Preferred Stock to convert all or any portion of Series A Preferred Stock outstanding at any point in time. If converted, the holders of the Series B Preferred Stock would be entitled to additional warrants, with an exercise price of $0.0001. These warrants were fair valued using the closing stock price of $4.21 on May 20, 2019, at an estimated if-converted share count and recorded as a liability. Series B-1 Preferred Stock - Additional 6% Warrants (recurring) - The Additional 6% Warrants are issuable if the Company fails to meet certain Adjusted EBITDA thresholds on a trailing twelve-month basis from May 31, 2020 through April 30, 2021. The Company recorded the Additional 6% Warrants at fair value, which was estimated using a Monte Carlo Simulation based on certain significant unobservable inputs, such as a risk rate premium, Adjusted EBITDA volatility, stock price volatility and projected Adjusted EBITDA for the Company for 2019. The Additional 6% Warrants were recorded as a liability. Rights offering - The Company conducted a rights offering and each shareholder as of the record date was issued a right to purchase Series B Preferred Stock and warrants. The right that was issued was fair valued using a Black-Scholes model based on certain significant unobservable inputs, such as a risk rate premium, stock price volatility, dividend yield and expected term of rights offering. The rights offering fair value was recorded as a liability and was a deemed dividend to common stockholders and reflected as a reduction in additional paid in capital. On March 4, 2020 we completed the rights offering, removed the liability associated with the fair value (rights offering - recurring) and issued and sold 350 shares of Series B-3 Preferred Stock (Series B-3 Preferred Stock - non-recurring at a fair value of $313,000) and 12,029 warrants (non-recurring Series B Preferred Stock - Warrants at closing - non-recurring at a fair value of $37,000) to purchase common stock. 2020 Commitment - The Company is obligated to sell to, Ares and Oaktree, and they are obligated to purchase, additional shares of Series B Preferred Stock up to approximately $15.0 million based on a failure by the Company to achieve specified debt and liquidity levels. See Note 12. Subsequent Events for further discussion of the transaction. Other financial instruments of the Company not listed in the table consist of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities that approximate their fair values. Additionally, management believes that the outstanding recorded balance on the line of credit and long-term debt, approximates fair value due to their floating interest rates. |
Income taxes |
3 Months Ended |
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Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes The Company’s statutory federal tax rate was 21.00% for the periods ended March 31, 2020 and 2019, respectively. State tax rates for the same period vary among states and range from approximately 0.8% to 12.0%. A small number of states do not impose an income tax. The effective tax rates for the three months ended March 31, 2020 and 2019 were 6.4% and 27.4%, respectively. The difference between the Company’s effective tax rate and the federal statutory rate primarily results from permanent differences related to the interest accrued for the Series B Preferred Stock, which is not deductible for federal and state income taxes. There were no changes in uncertain tax positions during the periods ended March 31, 2020 and 2019. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted by the US Government in response to the COVID-19 pandemic to provide employment retention incentives. These relief measures did not materially affect the condensed consolidated financial statements for the first quarter of 2020. We are currently assessing the future implications of these provisions on our condensed consolidated financial statements. |
Business, Basis of Presentation and Significant Accounting Policies (Notes) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Business, Basis of Presentation and Significant Accounting Policies Organization and Reportable Segments Infrastructure and Energy Alternatives, Inc., a Delaware corporation, is a holding company organized on August 4, 2015 (together with its wholly-owned subsidiaries, “IEA” or the “Company”). On March 26, 2018, we became a public company by consummating a merger (the “Merger”) pursuant to an Agreement and Plan of Merger, dated November 3, 2017, with M III Acquisition Corporation (“M III”). As of December 31, 2019, the Company's total annual gross revenues exceeded $1.07 billion and we are no longer an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”). We segregate our business into two reportable segments: the Renewables segment and the Specialty Civil segment. See Note 10. Segments for a description of the reportable segments and their operations. COVID-19 Pandemic During March 2020, the World Health Organization declared a global pandemic related to the rapidly growing outbreak of a novel strain of coronavirus (“COVID-19”). The COVID-19 pandemic has significantly affected economic conditions in the United States and internationally as national, state and local governments reacted to the public health crisis by requiring mitigation measures that have disrupted business activities for an uncertain period of time. The effects of the COVID-19 pandemic could affect the Company’s future business activities and financial results, including; reduced crew productivity, contract amendments/cancellations, higher operating costs and/or delayed project start dates or project shutdowns that may be requested or mandated by governmental authorities or others. The effects of the COVID-19 pandemic on the Company’s financial results for the three months ended March 31, 2020 has had no negative material impact. Most of the Company’s construction services are currently deemed essential under governmental mitigation orders and substantially all of its business segments continue to operate. Management’s top priority has been to take appropriate actions to protect the health and safety of its employees, customers and business partners, including adjusting its standard operating procedures to respond to evolving health guidelines. Management believes that it is taking appropriate steps to mitigate any potential impact to the Company; however, given the uncertainty regarding the potential effects of the COVID-19 pandemic, any future impacts cannot be quantified or predicted with specificity. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions for Quarterly Reports on Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The unaudited condensed consolidated financial statements include the accounts of IEA and its wholly-owned direct and indirect domestic and foreign subsidiaries and in the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary to present fairly the results of operations for the interim periods presented. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019 and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. Basis of Accounting and Use of Estimates The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Key estimates include: the recognition of revenue and project profit or loss; fair value estimates, including those related to Series B Preferred Stock; valuations of goodwill and intangible assets; asset lives used in computing depreciation and amortization; accrued self-insured claims; other reserves and accruals; accounting for income taxes; and the estimated impact of contingencies and ongoing litigation. While management believes that its estimates are reasonable when considered in conjunction with the Company’s consolidated financial position and results of operations, actual results could differ materially from those estimates. Revenue Recognition The Company adopted the requirements of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which is also referred to as Accounting Standards Codification (“ASC”) Topic 606, under the modified retrospective transition approach effective January 1, 2019, with application to all existing contracts that were not substantially completed as of January 1, 2019. The Company adopted this standard for interim periods beginning after December 31, 2019, and recorded adjustments to the previously issued quarterly financial statements for the three months ended March 31, 2019. The impacts of adoption on the Company’s retained earnings on January 1, 2019 was primarily related to variable consideration on unapproved change orders. The cumulative impact of adopting Topic 606 required net adjustments of $750,000 to the statement of operations between revenue, cost of revenue and income taxes, thereby reducing income in the March 31, 2019 quarterly financial statements and reducing the December 31, 2019 accumulated deficit. The Company also adjusted the cashflow statement as of March 31, 2019, to reflect adoption. Under Topic 606, revenue is recognized when control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. Revenue is recognized by the Company primarily over time utilizing the cost-to-cost measure of progress for fixed price contracts and are based on cost for time and materials and other service contracts, consistent with the Company’s previous revenue recognition practices. Contracts The Company derives revenue primarily from construction projects performed under contracts for specific projects requiring the construction and installation of an entire infrastructure system or specified units within an infrastructure system. The contracts contain multiple pricing options, including fixed price, time and materials, or unit price. Renewable energy projects are performed for private customers while our Specialty Civil projects are performed for a mix of various governmental entities. Revenue derived from projects billed on a fixed-price basis totaled 96.0% and 90.2% of consolidated revenue from operations for the three months ended March 31, 2020 and 2019, respectively. Revenue and related costs for construction contracts billed on a time and materials basis are recognized as the services are rendered. Revenue derived from projects billed on a time and materials basis totaled 4.0% and 9.8% of consolidated revenue from operations for the three months ended March 31, 2020 and 2019, respectively. Revenue from construction contracts is recognized over time using the cost-to-cost measure of progress for fixed price construction contracts. For these contracts, the cost-to-cost measure of progress best depicts the continuous transfer of control of goods or services to the customer. The contractual terms provide that the customer compensates the Company for services rendered. Contract costs include all direct materials, labor and subcontracted costs, as well as indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and the operational costs of capital equipment. The cost estimation and review process for recognizing revenue over time under the cost-to-cost method is based on the professional knowledge and experience of the Company’s project managers, engineers and financial professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and profit recognition. Changes in these factors could result in revisions to revenue and costs of revenue in the period in which the revisions are determined on a prospective basis, which could materially affect the Company’s condensed consolidated results of operations for that period. Provisions for losses on uncompleted contracts are recorded in the period in which such losses are determined. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price of a contract is allocated to a distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The Company’s contracts often require significant integrated services and, even when delivering multiple distinct services, are generally accounted for as a single performance obligation. Contract amendments and change orders are generally not distinct from the existing contract due to the significant integrated service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. With the exception of certain Specialty Civil service contracts, the majority of the Company’s performance obligations are completed within one year. When more than one contract is entered into with a customer on or close to the same date, the Company evaluates whether those contracts should be combined and accounted for as a single contract as well as whether those contracts should be accounted for as more than one performance obligation. This evaluation requires significant judgment and is based on the facts and circumstances of the various contracts, which could change the amount of revenue and profit recognition in a given period depending upon the outcome of the evaluation. Remaining performance obligations represent the amount of unearned transaction prices for contracts, including approved and unapproved change orders. As of March 31, 2020, the amount of the Company’s remaining performance obligations was $1,238.5 million. The Company expects to recognize approximately 81.6% of its remaining performance obligations as revenue during 2020. Revenue recognized from performance obligations satisfied in previous periods was ($2.0) million and $2.8 million, for the three months ended March 31, 2020 and 2019, respectively. Variable Consideration Transaction pricing for the Company’s contracts may include variable consideration, such as unapproved change orders, claims, incentives and liquidated damages. Management estimates variable consideration for a performance obligation utilizing estimation methods that best predict the amount of consideration to which the Company will be entitled. Variable consideration is included in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Management’s estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based on legal opinions, past practices with the customer, specific discussions, correspondence or preliminary negotiations with the customer and all other relevant information that is reasonably available. The effect of a change in variable consideration on the transaction price of a performance obligation is typically recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders, claims and liquidated damages reflected in transaction price are not resolved in the Company’s favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue. As of March 31, 2020 and year ended December 31, 2019, the Company included approximately $60.2 million and $73.3 million, respectively, of unapproved change orders and/or claims in the transaction price for certain contracts that were in the process of being resolved in the normal course of business, including through negotiation, arbitration and other proceedings. These transaction price adjustments are included within Contract Assets or Contract Liabilities as appropriate. The Company actively engages with its customers to complete the final change order approval process, and generally expects these processes to be completed within one year. Amounts ultimately realized upon final acceptance by customers could be higher or lower than such estimated amounts. Disaggregation of Revenue The following tables disaggregate revenue by customers and services performed, which the Company believes best depicts how the nature, amount, timing and uncertainty of its revenue:
Concentrations The Company had the following approximate revenue and accounts receivable concentrations, net of allowances, for the periods ended:
* Amount was not above 10% threshold Recently Adopted Accounting Standards - Guidance Adopted in 2020 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which eliminates certain disclosure requirements for recurring and non-recurring fair value measurements, such as the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy, and adds new disclosure requirements for Level 3 measurements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. Certain disclosures per ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. We adopted the standard on January 1, 2020, and it did not have an impact on our disclosures for fair value measurements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which is effective for annual reporting periods beginning after December 15, 2018. Under Topic 842, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Topic 842 requires entities to adopt the new lease standard using a modified retrospective method and initially apply the related guidance at the beginning of the earliest period presented in the financial statements. The Company adopted Topic 842 using the modified retrospective method as of January 1, 2019 and for interim periods beginning after December 31, 2019, without adjusting comparative periods in the financial statements. The most significant effect of the new guidance was the recognition of operating lease right-of-use assets and a liability for operating leases as of December 31, 2019. The accounting for finance leases (capital leases) was substantially unchanged. The Company elected to utilize the package of practical expedients that allowed entities to: (1) not reassess whether any expired or existing contracts were or contained leases; (2) retain the existing classification of lease contracts as of the date of adoption; (3) not reassess initial direct costs for any existing leases; and (4) not separate non-lease components for all classes of leased assets. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which introduced an expected credit loss methodology for the measurement and recognition of credit losses on most financial assets, including trade accounts receivables. The expected credit loss methodology under ASU 2016-13 is based on historical experience, current conditions and reasonable and supportable forecasts, and replaces the probable/incurred loss model for measuring and recognizing expected losses under current GAAP. The ASU also requires disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. The ASU and its related clarifying updates are effective for smaller reporting companies for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We are still evaluating the new standard but do not expect it to have a material impact on our estimate of the allowance for uncollectable accounts. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective, or prospective basis. We are currently evaluating the potential effects of adopting the provisions of ASU No. 2019-12. Management has evaluated other recently issued accounting pronouncements and does not believe that they will have a significant impact on the financial statements and related disclosures. |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 17,483 | 17,483 |
Preferred stock, shares outstanding | 17,483 | 17,483 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 20,700,555 | 20,460,533 |
Common stock, shares, outstanding | 20,648,793 | 20,446,811 |
Treasury Stock, Shares | 51,762 | 13,722 |
Business, Basis of Presentation and Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. |
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Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions for Quarterly Reports on Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The unaudited condensed consolidated financial statements include the accounts of IEA and its wholly-owned direct and indirect domestic and foreign subsidiaries and in the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary to present fairly the results of operations for the interim periods presented. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019 and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. |
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Segment Reporting, Policy [Policy Text Block] | We segregate our business into two reportable segments: the Renewables segment and the Specialty Civil segment. See Note 10. Segments for a description of the reportable segments and their operations. |
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Use of Estimates, Policy [Policy Text Block] | The preparation of the condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Key estimates include: the recognition of revenue and project profit or loss; fair value estimates, including those related to Series B Preferred Stock; valuations of goodwill and intangible assets; asset lives used in computing depreciation and amortization; accrued self-insured claims; other reserves and accruals; accounting for income taxes; and the estimated impact of contingencies and ongoing litigation. While management believes that its estimates are reasonable when considered in conjunction with the Company’s consolidated financial position and results of operations, actual results could differ materially from those estimates. |
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Revenue [Policy Text Block] | Revenue Recognition The Company adopted the requirements of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which is also referred to as Accounting Standards Codification (“ASC”) Topic 606, under the modified retrospective transition approach effective January 1, 2019, with application to all existing contracts that were not substantially completed as of January 1, 2019. The Company adopted this standard for interim periods beginning after December 31, 2019, and recorded adjustments to the previously issued quarterly financial statements for the three months ended March 31, 2019. The impacts of adoption on the Company’s retained earnings on January 1, 2019 was primarily related to variable consideration on unapproved change orders. The cumulative impact of adopting Topic 606 required net adjustments of $750,000 to the statement of operations between revenue, cost of revenue and income taxes, thereby reducing income in the March 31, 2019 quarterly financial statements and reducing the December 31, 2019 accumulated deficit. The Company also adjusted the cashflow statement as of March 31, 2019, to reflect adoption. Under Topic 606, revenue is recognized when control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. Revenue is recognized by the Company primarily over time utilizing the cost-to-cost measure of progress for fixed price contracts and are based on cost for time and materials and other service contracts, consistent with the Company’s previous revenue recognition practices. Contracts The Company derives revenue primarily from construction projects performed under contracts for specific projects requiring the construction and installation of an entire infrastructure system or specified units within an infrastructure system. The contracts contain multiple pricing options, including fixed price, time and materials, or unit price. Renewable energy projects are performed for private customers while our Specialty Civil projects are performed for a mix of various governmental entities. Revenue derived from projects billed on a fixed-price basis totaled 96.0% and 90.2% of consolidated revenue from operations for the three months ended March 31, 2020 and 2019, respectively. Revenue and related costs for construction contracts billed on a time and materials basis are recognized as the services are rendered. Revenue derived from projects billed on a time and materials basis totaled 4.0% and 9.8% of consolidated revenue from operations for the three months ended March 31, 2020 and 2019, respectively. Revenue from construction contracts is recognized over time using the cost-to-cost measure of progress for fixed price construction contracts. For these contracts, the cost-to-cost measure of progress best depicts the continuous transfer of control of goods or services to the customer. The contractual terms provide that the customer compensates the Company for services rendered. Contract costs include all direct materials, labor and subcontracted costs, as well as indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and the operational costs of capital equipment. The cost estimation and review process for recognizing revenue over time under the cost-to-cost method is based on the professional knowledge and experience of the Company’s project managers, engineers and financial professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and profit recognition. Changes in these factors could result in revisions to revenue and costs of revenue in the period in which the revisions are determined on a prospective basis, which could materially affect the Company’s condensed consolidated results of operations for that period. Provisions for losses on uncompleted contracts are recorded in the period in which such losses are determined. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price of a contract is allocated to a distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The Company’s contracts often require significant integrated services and, even when delivering multiple distinct services, are generally accounted for as a single performance obligation. Contract amendments and change orders are generally not distinct from the existing contract due to the significant integrated service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. With the exception of certain Specialty Civil service contracts, the majority of the Company’s performance obligations are completed within one year. When more than one contract is entered into with a customer on or close to the same date, the Company evaluates whether those contracts should be combined and accounted for as a single contract as well as whether those contracts should be accounted for as more than one performance obligation. This evaluation requires significant judgment and is based on the facts and circumstances of the various contracts, which could change the amount of revenue and profit recognition in a given period depending upon the outcome of the evaluation. Remaining performance obligations represent the amount of unearned transaction prices for contracts, including approved and unapproved change orders. As of March 31, 2020, the amount of the Company’s remaining performance obligations was $1,238.5 million. The Company expects to recognize approximately 81.6% of its remaining performance obligations as revenue during 2020. Revenue recognized from performance obligations satisfied in previous periods was ($2.0) million and $2.8 million, for the three months ended March 31, 2020 and 2019, respectively. Variable Consideration Transaction pricing for the Company’s contracts may include variable consideration, such as unapproved change orders, claims, incentives and liquidated damages. Management estimates variable consideration for a performance obligation utilizing estimation methods that best predict the amount of consideration to which the Company will be entitled. Variable consideration is included in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Management’s estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based on legal opinions, past practices with the customer, specific discussions, correspondence or preliminary negotiations with the customer and all other relevant information that is reasonably available. The effect of a change in variable consideration on the transaction price of a performance obligation is typically recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders, claims and liquidated damages reflected in transaction price are not resolved in the Company’s favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue. As of March 31, 2020 and year ended December 31, 2019, the Company included approximately $60.2 million and $73.3 million, respectively, of unapproved change orders and/or claims in the transaction price for certain contracts that were in the process of being resolved in the normal course of business, including through negotiation, arbitration and other proceedings. These transaction price adjustments are included within Contract Assets or Contract Liabilities as appropriate. The Company actively engages with its customers to complete the final change order approval process, and generally expects these processes to be completed within one year. Amounts ultimately realized upon final acceptance by customers could be higher or lower than such estimated amounts. Disaggregation of Revenue The following tables disaggregate revenue by customers and services performed, which the Company believes best depicts how the nature, amount, timing and uncertainty of its revenue:
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New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards - Guidance Adopted in 2020 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which eliminates certain disclosure requirements for recurring and non-recurring fair value measurements, such as the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy, and adds new disclosure requirements for Level 3 measurements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. Certain disclosures per ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. We adopted the standard on January 1, 2020, and it did not have an impact on our disclosures for fair value measurements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which is effective for annual reporting periods beginning after December 15, 2018. Under Topic 842, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Topic 842 requires entities to adopt the new lease standard using a modified retrospective method and initially apply the related guidance at the beginning of the earliest period presented in the financial statements. The Company adopted Topic 842 using the modified retrospective method as of January 1, 2019 and for interim periods beginning after December 31, 2019, without adjusting comparative periods in the financial statements. The most significant effect of the new guidance was the recognition of operating lease right-of-use assets and a liability for operating leases as of December 31, 2019. The accounting for finance leases (capital leases) was substantially unchanged. The Company elected to utilize the package of practical expedients that allowed entities to: (1) not reassess whether any expired or existing contracts were or contained leases; (2) retain the existing classification of lease contracts as of the date of adoption; (3) not reassess initial direct costs for any existing leases; and (4) not separate non-lease components for all classes of leased assets. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which introduced an expected credit loss methodology for the measurement and recognition of credit losses on most financial assets, including trade accounts receivables. The expected credit loss methodology under ASU 2016-13 is based on historical experience, current conditions and reasonable and supportable forecasts, and replaces the probable/incurred loss model for measuring and recognizing expected losses under current GAAP. The ASU also requires disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. The ASU and its related clarifying updates are effective for smaller reporting companies for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We are still evaluating the new standard but do not expect it to have a material impact on our estimate of the allowance for uncollectable accounts. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective, or prospective basis. We are currently evaluating the potential effects of adopting the provisions of ASU No. 2019-12. Management has evaluated other recently issued accounting pronouncements and does not believe that they will have a significant impact on the financial statements and related disclosures. |
Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Segment Reporting Information [Line Items] | ||
Revenue | $ 358,163 | $ 189,781 |
Segment revenue as a percentage of total revenue | 100.00% | 100.00% |
Gross Profit | $ 33,041 | $ 5,744 |
Gross Profit Margin | 9.20% | 3.00% |
Renewables Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 248,746 | $ 74,031 |
Segment revenue as a percentage of total revenue | 69.50% | 39.00% |
Gross Profit | $ 25,829 | $ 1,163 |
Gross Profit Margin | 10.40% | 1.60% |
Specialty Civil Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 109,417 | $ 115,750 |
Segment revenue as a percentage of total revenue | 30.50% | 61.00% |
Gross Profit | $ 7,212 | $ 4,581 |
Gross Profit Margin | 6.60% | 4.00% |
Goodwill and Intangible Assets, net (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
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Mar. 31, 2020 |
Dec. 31, 2019 |
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Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 37,373 | $ 40,257 |
Goodwill, Period Increase (Decrease) | 0 | (2,884) |
Goodwill, Ending Balance | 37,373 | 37,373 |
Renewables Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 3,020 | 3,020 |
Goodwill, Period Increase (Decrease) | 0 | 0 |
Goodwill, Ending Balance | 3,020 | 3,020 |
Specialty Civil Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 34,353 | 37,237 |
Goodwill, Period Increase (Decrease) | 0 | (2,884) |
Goodwill, Ending Balance | $ 34,353 | $ 34,353 |
Business, Basis of Presentation and Significant Accounting Policies Revenue 606 (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
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Revenue 606 [Abstract] | |||
Effect of Change in Accounting Principle Topic 606 | $ 750,000 | ||
Revenue, Remaining Performance Obligation, Amount | $ 1,238,500,000 | ||
Revenue, Remaining Performance Obligation, Percentage | 81.60% | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ (2,000,000) | $ 2,800,000 | |
Deferred Revenue, Revenue Recognized | $ 60,200,000 | $ 73,300,000 |
Subsequent Event (Notes) |
3 Months Ended |
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Mar. 31, 2020 | |
Subsequent Event [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event Amendment to Equity Commitment Agreement On May 6, 2020, the Company entered into an Amendment (the “Amendment”) to the Equity Commitment Agreement, dated as of October 29, 2019 (the “Equity Commitment Agreement”) by and between the Company, Ares and Oaktree. The Amendment amends the Equity Commitment Agreement to extend the period of time required to enter into the 2020 Commitment and purchase additional shares of Series B-3 Preferred Stock and warrants from the Company to July 14, 2020, or such other date as mutually agreed upon. Additionally, the Amendment clarifies that the 2020 Commitment shall in no event exceed $5,650,000. |
Goodwill and Intangible Assets, net (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets, Net The following table provides the changes in the carrying amount of goodwill:
Intangible assets consisted of the following as of the dates indicated:
Amortization expense associated with intangible assets for the three months ended March 31, 2020 and 2019, totaled $3.4 million and $3.5 million, respectively. The following table provides the annual intangible amortization expense currently expected to be recognized for the years 2020 through 2024:
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Earnings per share |
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Earnings per share | Earnings Per Share The Company calculates earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares of common stock outstanding during the period. Income (loss) available to common stockholders is computed by deducting the dividends accrued for the period on cumulative preferred stock from net income. If there is a net loss, the amount of the loss is increased by those preferred dividends. Diluted EPS assumes the dilutive effect of (i) contingently issuable earn-out shares, (ii) Series A cumulative convertible preferred stock, using the if-converted method, and (iii) the assumed exercise of in-the-money stock options and warrants and the assumed vesting of outstanding restricted stock units (“RSUs”), using the treasury stock method. Whether the Company has net income, or a net loss determines whether potential issuances of common stock are included in the diluted EPS computation or whether they would be anti-dilutive. As a result, if there is a net loss, diluted EPS is computed in the same manner as basic EPS is computed. Similarly, if the Company has net income but its preferred dividend adjustment made in computing income available to common stockholders results in a net loss available to common stockholders, diluted EPS would be computed the same as basic EPS. The calculations of basic and diluted EPS, are as follows:
Series A Preferred Stock As of March 31, 2020, we had 17,483 shares of Series A Preferred Stock with a stated value of $1,000 per share plus accumulated dividends. Dividends are paid on the Series A Preferred Stock as, if and when declared by our Board. To extent permitted, dividends are required to be paid in cash quarterly in arrears on each March 31, June 30, September 30 and December 31 on the stated value at a rate of 10% per annum. If not paid in cash, dividends will accrue on the stated value and will increase the stated value on and effective as of the applicable dividend date without any further action by the Board at 12% per annum. So long as any shares of Series B Preferred Stock of the Company are currently outstanding or from and after the occurrence of any non-payment event or default event and until cured or waived, the foregoing rates will increase by 2% per annum. As of March 31, 2020, the Company has accrued a cumulative of $2.5 million in dividends to holders of Series A Preferred Stock as a reduction to additional paid-in capital. Series B Preferred Stock As of March 31, 2020, we had 199,474 shares of Series B Preferred Stock outstanding, with each share having a stated value of $1,000 plus accumulated dividends. Our common stock and Series A Preferred Stock are junior to the Series B Preferred Stock. Dividends are paid in cash on the Series B Preferred Stock as, if and when declared by our Board. To the extent not prohibited by applicable law, dividends are required to be declared and paid in cash quarterly in arrears on each March 31, June 30, September 30 and December 31. Any dividend period for which the Total Net Leverage Ratio is greater than 1.50:1.00, the dividend rate is 13.5% per annum and (ii) with respect to any dividend period for which the Total Net Leverage Ratio is less than or equal to 1.50:1.00, at a rate of 12% per annum. If not paid in cash, dividends will accrue on the stated value and will increase the stated value on Series B Preferred Stock and is effective as of the applicable dividend date without any further action by the Board at a rate of 15%. The Company has accrued a cumulative of $18.3 million in dividends to holders of Series B Preferred Stock, which is recorded in convertible debt in the Company's condensed consolidated balance sheet for the quarter ended March 31, 2020. See Note 5. Fair Value of Financial Instruments for discussion regarding the Company's valuation of Series B Preferred Stock. Stock Compensation Under guidance of ASC Topic 718 “Compensation — Stock Compensation,” stock-based compensation expense is measured at the date of grant, based on the calculated fair value of the stock-based award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the award). The fair value of the RSUs was based on the closing market price of our common stock on the date of the grant. Stock compensation expense for the RSUs is being amortized using the straight-line method over the service period. For the three months ended March 31, 2020 and 2019, we recognized $1.1 million and $1.0 million in compensation expense, respectively, |
Income taxes (Details) - USD ($) |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Income Tax Contingency [Line Items] | ||
Statutory federal tax rate | 21.00% | |
Effective tax rates | 6.40% | 27.40% |
Increase (decrease) in uncertain tax positions | $ 0 | $ 0 |
Minimum | ||
Income Tax Contingency [Line Items] | ||
State tax rate | 0.80% | |
Maximum | ||
Income Tax Contingency [Line Items] | ||
State tax rate | 12.00% |
Commitments and contingencies Future minimum payments of finance leases (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Commitments and Contingencies Disclosures [Abstract] | ||
Remainder of 2020 | $ 20,035 | |
2021 | 22,344 | |
2022 | 18,302 | |
2023 | 4,108 | |
2024 | 628 | |
Thereafter | 157 | |
Finance minimum lease payments | 65,574 | |
Less: Amount representing interest | 4,311 | |
Present Value of Minimum Lease Payments | 61,263 | $ 64,200 |
Less: Current portion of finance lease obligations | 23,437 | |
Finance lease obligations, less current portion | $ 37,826 |
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Debt Instrument [Line Items] | ||
Total principal due for long-term debt | $ 177,291 | $ 187,143 |
Debt Issuance Costs, Net | (20,810) | (22,296) |
Long-term Debt, Current Maturities | (1,693) | (1,946) |
Long-term debt, less current portion | 154,788 | 162,901 |
Debt - Series B Preferred Stock | 175,145 | 166,141 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total principal due for long-term debt | 173,345 | 182,687 |
Series B Preferred Stock Liability [Member] | ||
Debt Instrument [Line Items] | ||
Total principal due for long-term debt | 188,755 | 180,444 |
Debt Issuance Costs, Net | (13,610) | (14,303) |
Commercial equipment notes | ||
Debt Instrument [Line Items] | ||
Total principal due for long-term debt | $ 3,946 | $ 4,456 |
Property, plant and equipment, net (Tables) |
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Schedule of property plant and equipment | Property, plant and equipment consisted of the following:
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Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The future minimum payments of finance lease obligations are as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The future minimum payments under non-cancelable operating leases are as follows:
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Schedule of Additional Lease Information [Table Text Block] | Lease Information
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Condensed Consolidated Statement of Operations - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Revenue | $ 358,163 | $ 189,781 |
Cost of revenue | 325,122 | 184,037 |
Gross profit | 33,041 | 5,744 |
Selling, general and administrative expenses | 29,484 | 27,754 |
Income (loss) from operations | 3,557 | (22,010) |
Other income (expense), net: | ||
Interest expense, net | (16,065) | (10,367) |
Other expense | (1,102) | (170) |
Loss before benefit for income taxes | (13,610) | (32,547) |
Benefit for income taxes | 867 | 8,908 |
Net loss | $ (12,743) | $ (23,639) |
Earnings Per Share, Basic | $ (0.66) | $ (1.09) |
Earnings Per Share, Diluted | $ (0.66) | $ (1.09) |
Weighted Average Number of Shares Outstanding, Basic | 20,522,216 | 22,188,757 |
Weighted Average Number of Shares Outstanding, Diluted | 20,522,216 | 22,188,757 |
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Contract Assets and Liabilities | Contract Assets and Liabilities The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advance payments or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability. Contract assets in the Condensed Consolidated Balance Sheets represent the following:
Contract assets consist of the following:
Contract liabilities consist of the following:
The contract receivables amount as of March 31, 2020 and December 31, 2019 includes unapproved change orders of approximately $9.2 million for which the Company is pursuing settlement through dispute resolution. Revenue recognized for the three months ended March 31, 2020 and 2019 that was included in the contract liability balance at the beginning of each year was approximately $90.9 million and $31.9 million, respectively. Activity in the allowance for doubtful accounts for the periods indicated is as follows:
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consists of the following obligations as of:
The weighted average interest rate for the term loan as of March 31, 2020 and December 31, 2019, was 9.70% and 10.35%, respectively. Debt Covenants The term loan is governed by the terms of the Third A&R Credit Agreement, which include customary affirmative and negative covenants and provide for customary events of default, which include, nonpayment of principal or interest and failure to timely deliver financial statements. Under the Third A&R Credit Agreement, the financial covenant provides that the First Lien Net Leverage Ratio (as defined therein) may not exceed (i) prior to the fiscal quarter ending December 31, 2019, 4.75:1.0, (ii) for the four fiscal quarters ending December 31, 2020, 3.50:1.0, (iii) for the four fiscal quarters ending December 31, 2021, 2.75:1.0, and (iv) for all subsequent quarters, 2.25:1.0. Under the Third A&R Credit Agreement, the Company could not use an equity infusion to cure any covenant violations for fiscal quarter ending in 2019, excluding the Series B Preferred Stock. Thereafter, the Company has access to a customary equity cure. The Third A&R Credit Agreement also includes certain limitations on the payment of cash dividends on the Company's common shares and provides for other restrictions on (subject to certain exceptions) liens, indebtedness (including guarantees and other contingent obligations), investments (including loans, advances and acquisitions), mergers and other fundamental changes and sales and other dispositions of property or assets, among others. Letters of Credit and Surety Bonds In the ordinary course of business, the Company is required to post letters of credit and surety bonds to customers in support of performance under certain contracts. Such letters of credit are generally issued by a bank or similar financial institution. The letter of credit or surety bond commits the issuer to pay specified amounts to the holder of the letter of credit or surety bond under certain conditions. If the letter of credit or surety bond issuer were required to pay any amount to a holder, the Company would be required to reimburse the issuer, which, depending upon the circumstances, could result in a charge to earnings. As of March 31, 2020, and December 31, 2019, the Company was contingently liable under letters of credit issued under its Third A&R Credit Agreement, in the amount of $23.7 million and $21.0 million, respectively, related to projects. In addition, as of March 31, 2020 and December 31, 2019, the Company had outstanding surety bonds on projects of $2.5 billion and $2.4 billion, respectively. Contractual Maturities Contractual maturities of the Company's outstanding principal on debt obligations as of March 31, 2020:
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Segments (Notes) |
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Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Segments We operate our business as two reportable segments: the Renewables segment and the Specialty Civil segment. Each of our reportable segments is comprised of similar business units that specialize in services unique to the respective markets that each segment serves. The classification of revenue and gross profit for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs and indirect operating expenses, were made based on segment revenue. Separate measures of the Company’s assets, including capital expenditures and cash flows by reportable segment are not produced or utilized by management to evaluate segment performance. A substantial portion of the Company’s fixed assets are owned by and accounted for in our equipment department, including operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, and are used on an interchangeable basis across our reportable segments. As such, for reporting purposes, total under/over absorption of equipment expenses consisting primarily of depreciation is allocated to the Company's two reportable segments based on segment revenue. The following is a brief description of the Company's reportable segments: Renewables Segment The Renewables segment operates throughout the United States and specializes in a range of full engineering, procurement and construction (“EPC”) services that include project delivery, design, site development, construction, installation and restoration of infrastructure services for the wind and solar industries. Specialty Civil Segment The Specialty Civil segment operates throughout the United States and specializes in a range of services that include:
Segment Revenue Revenue by segment was as follows:
Segment Gross Profit Gross profit by segment was as follows:
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Goodwill and Intangible Assets, net Schedule of annual expected amortization expense (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
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Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2020 | $ 11,837 |
2021 | 6,466 |
2022 | 6,466 |
2023 | 5,841 |
2024 | $ 3,785 |
Contract Assets and Liabilities Activity in allowance for doubtful accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
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Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Beginning of Period | $ 75 | $ 42 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 14 | 30 | |
Accounts Receivable, Credit Loss Expense (Reversal) | 0 | 0 | |
Accounts Receivable, Allowance for Credit Loss, End of Period | 89 | $ 72 | |
One Customer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contracts Receivable, Claims and Uncertain Amounts | $ 9,200 | $ 9,200 |
Business, Basis of Presentation and Significant Accounting Policies Disaggregation of Revenue (Details) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020
USD ($)
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Mar. 31, 2019
USD ($)
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Disaggregation of Revenue [Line Items] | ||
Number of Reportable Segments | 2 | |
Revenue | $ 358,163 | $ 189,781 |
Wind Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 248,537 | 72,034 |
Solar Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 209 | 1,997 |
Heavy Civil Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 41,222 | 50,115 |
Rail Construction Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 47,057 | 42,609 |
Environmental Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,138 | 23,026 |
Renewables Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 248,746 | 74,031 |
Specialty Civil Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 109,417 | $ 115,750 |
Commitments and contingencies Schedule of Additional Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Additional Lease Information [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 5,697 | $ 5,008 |
Finance Lease, Interest Expense | 1,186 | 1,650 |
Operating Leases, Rent Expense, Net | 3,478 | 1,831 |
Short-term Lease, Cost | 21,635 | 8,496 |
Variable Lease, Cost | 960 | 191 |
Sublease Income | (33) | (24) |
Lease, Cost | 32,923 | 17,152 |
Operating Cashflow Finance Leases | 1,186 | 1,650 |
Operating cashflow from operating leases | $ 3,342 | $ 3,247 |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 8 months 23 days | 3 years 4 months 10 days |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 7 days | 9 years 11 months 7 days |
Finance Lease, Weighted Average Discount Rate, Percent | 6.49% | 6.70% |
Operating Lease, Weighted Average Discount Rate, Percent | 7.14% | 6.89% |
Debt - Long Term Debt Obligations (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
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Debt Disclosure [Abstract] | |
Remainder of 2020 | $ 1,365 |
2021 | 1,228 |
2022 | 15,859 |
2023 | 29,735 |
2024 | 129,104 |
Thereafter | 0 |
Contractual Obligation | $ 177,291 |
Business, Basis of Presentation and Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | The following tables disaggregate revenue by customers and services performed, which the Company believes best depicts how the nature, amount, timing and uncertainty of its revenue:
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Schedule of revenue and accounts receivable concentrations, net of allowances | The Company had the following approximate revenue and accounts receivable concentrations, net of allowances, for the periods ended:
* Amount was not above 10% threshold |
Fair value of financial instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of liabilities measured on recurring basis | The following table sets forth information regarding the Company's assets measured at fair value on a recurring basis:
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Schedule of reconciliation of fair value unobservable liabilities measured on recurring basis | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements using Level 3 inputs:
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Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Segment Revenue Revenue by segment was as follows:
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Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Segment Gross Profit Gross profit by segment was as follows:
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