þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-3512838 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
111 Speen Street, Suite 410 Framingham, Massachusetts | 01701 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large Accelerated Filer o | Accelerated Filer þ | Non-accelerated filer o | Smaller reporting company o |
Emerging growth company o | (Do not check if a smaller reporting company) | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Class | New York Stock Exchange Symbol | Shares outstanding as of November 1, 2019 |
Class A Common Stock, $0.0001 par value per share | AMRC | 29,033,114 |
Class B Common Stock, $0.0001 par value per share | 18,000,000 |
Page | ||
Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2019 and 2018 (Unaudited) | ||
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018 (Unaudited) | ||
Condensed Consolidated Statements of Changes in Redeemable Non-Controlling Interests and Stockholders’ Equity for the three and nine months ended September 30, 2019 and 2018 (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 (Unaudited) | ||
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents (1) | $ | 34,104 | $ | 61,397 | |||
Restricted cash (1) | 13,498 | 16,880 | |||||
Accounts receivable, net of allowance of $2,587 and $2,765, respectively (1) | 91,755 | 85,985 | |||||
Accounts receivable retainage, net | 16,652 | 13,516 | |||||
Costs and estimated earnings in excess of billings (1) | 124,652 | 86,842 | |||||
Inventory, net | 9,902 | 7,765 | |||||
Prepaid expenses and other current assets (1) | 22,585 | 11,571 | |||||
Income tax receivable | 1,629 | 5,296 | |||||
Project development costs | 26,305 | 21,717 | |||||
Total current assets (1) | 341,082 | 310,969 | |||||
Federal ESPC receivable | 182,012 | 293,998 | |||||
Property and equipment, net (1) | 10,469 | 6,985 | |||||
Energy assets, net (1) | 507,759 | 459,952 | |||||
Goodwill | 57,899 | 58,332 | |||||
Intangible assets, net | 1,810 | 2,004 | |||||
Operating lease assets (1) | 32,540 | — | |||||
Other assets (1) | 36,786 | 29,394 | |||||
Total assets (1) | $ | 1,170,357 | $ | 1,161,634 | |||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portions of long-term debt and financing lease liabilities (1) | $ | 54,958 | $ | 26,890 | |||
Accounts payable (1) | 133,833 | 134,330 | |||||
Accrued expenses and other current liabilities (1) | 28,700 | 35,947 | |||||
Current portions of operating lease liabilities (1) | 5,935 | — | |||||
Billings in excess of cost and estimated earnings | 23,234 | 24,363 | |||||
Income taxes payable | — | 1,100 | |||||
Total current liabilities (1) | 246,660 | 222,630 | |||||
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees (1) | 223,766 | 219,162 | |||||
Federal ESPC liabilities | 196,584 | 288,047 | |||||
Deferred income taxes, net (1) | 3,242 | 4,352 | |||||
Deferred grant income | 6,223 | 6,637 | |||||
Long-term portions of operating lease liabilities, net of current (1) | 28,799 | — | |||||
Other liabilities (1) | 30,989 | 29,212 | |||||
Commitments and contingencies (Note 9) | |||||||
Redeemable non-controlling interests | 32,108 | 14,719 |
AMERESCO, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS — (Continued) | |||||||
(in thousands, except share amounts) | |||||||
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
(Unaudited) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2019 and December 31, 2018 | $ | — | $ | — | |||
Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 31,134,154 shares issued and 29,033,114 shares outstanding at September 30, 2019, 30,366,546 shares issued and 28,275,506 shares outstanding at December 31, 2018 | 3 | 3 | |||||
Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at September 30, 2019 and December 31, 2018 | 2 | 2 | |||||
Additional paid-in capital | 131,111 | 124,651 | |||||
Retained earnings | 292,256 | 269,806 | |||||
Accumulated other comprehensive loss, net | (9,609 | ) | (5,949 | ) | |||
Treasury stock, at cost, 2,101,040 shares at September 30, 2019 and 2,091,040 shares at December 31, 2018 | (11,777 | ) | (11,638 | ) | |||
Total stockholders’ equity | 401,986 | 376,875 | |||||
Total liabilities, redeemable non-controlling interests and stockholders’ equity | $ | 1,170,357 | $ | 1,161,634 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | 212,026 | $ | 205,375 | $ | 560,321 | $ | 569,767 | |||||||
Cost of revenues | 167,333 | 159,213 | 439,857 | 445,356 | |||||||||||
Gross profit | 44,693 | 46,162 | 120,464 | 124,411 | |||||||||||
Selling, general and administrative expenses | 31,231 | 28,866 | 87,396 | 84,871 | |||||||||||
Operating income | 13,462 | 17,296 | 33,068 | 39,540 | |||||||||||
Other expenses, net | 4,192 | 3,244 | 11,359 | 10,754 | |||||||||||
Income before provision for income taxes | 9,270 | 14,052 | 21,709 | 28,786 | |||||||||||
Income tax provision | 939 | 3,351 | 2,000 | 1,879 | |||||||||||
Net income | 8,331 | 10,701 | 19,709 | 26,907 | |||||||||||
Net loss (income) attributable to redeemable non-controlling interests | 539 | — | 2,524 | (516 | ) | ||||||||||
Net income attributable to common shareholders | $ | 8,870 | $ | 10,701 | $ | 22,233 | $ | 26,391 | |||||||
Net income per share attributable to common shareholders: | |||||||||||||||
Basic | $ | 0.19 | $ | 0.23 | $ | 0.48 | $ | 0.58 | |||||||
Diluted | $ | 0.19 | $ | 0.23 | $ | 0.47 | $ | 0.57 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 46,555 | 45,854 | 46,413 | 45,599 | |||||||||||
Diluted | 47,693 | 46,944 | 47,675 | 46,509 |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Net income | $ | 8,331 | $ | 10,701 | |||
Other comprehensive (loss) income: | |||||||
Unrealized (loss) gain from interest rate hedges, net of tax (provision) benefit of $(410) and $181, respectively | (1,135 | ) | 125 | ||||
Foreign currency translation adjustments | (356 | ) | (163 | ) | |||
Total other comprehensive loss | (1,491 | ) | (38 | ) | |||
Comprehensive income | 6,840 | 10,663 | |||||
Comprehensive loss attributable to redeemable non-controlling interests | 539 | — | |||||
Comprehensive income attributable to common shareholders | $ | 7,379 | $ | 10,663 | |||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Net income | $ | 19,709 | $ | 26,907 | |||
Other comprehensive (loss) income: | |||||||
Unrealized (loss) gain from interest rate hedges, net of tax (provision) benefit of $(1,308) and $590, respectively | (3,949 | ) | 1,686 | ||||
Foreign currency translation adjustments | 289 | (161 | ) | ||||
Total other comprehensive (loss) income | (3,660 | ) | 1,525 | ||||
Comprehensive income | 16,049 | 28,432 | |||||
Comprehensive loss (income) attributable to redeemable non-controlling interests | 2,524 | (516 | ) | ||||
Comprehensive income attributable to common shareholders | $ | 18,573 | $ | 27,916 |
Accumulated | |||||||||||||||||||||||||||||||||||||||||
Redeemable | Additional | Other | Total | ||||||||||||||||||||||||||||||||||||||
Non-Controlling | Class A Common Stock | Class B Common Stock | Paid-in | Retained | Comprehensive | Treasury Stock | Stockholders’ | ||||||||||||||||||||||||||||||||||
Interests | Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Shares | Amount | Equity | |||||||||||||||||||||||||||||||
Balance, June 30, 2018 | $ | 12,322 | 27,732,511 | $ | 3 | 18,000,000 | $ | 2 | $ | 119,257 | $ | 247,512 | $ | (4,495 | ) | 2,085,497 | $ | (11,571 | ) | $ | 350,708 | ||||||||||||||||||||
Cumulative impact from the adoption of ASU No. 2017-12 | — | — | — | — | — | — | — | (54 | ) | — | — | (54 | ) | ||||||||||||||||||||||||||||
Exercise of stock options | — | 239,597 | — | — | — | 2,012 | — | — | — | — | 2,012 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | 391 | — | — | — | — | 391 | ||||||||||||||||||||||||||||||
Unrealized gain from interest rate hedge, net | — | — | — | — | — | — | — | 611 | — | — | 611 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | (163 | ) | — | — | (163 | ) | ||||||||||||||||||||||||||||
Contributions from redeemable non-controlling interests | 2,365 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Distributions to redeemable non-controlling interests | (102 | ) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 10,701 | — | — | — | 10,701 | ||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | 14,585 | 27,972,108 | $ | 3 | 18,000,000 | $ | 2 | $ | 121,660 | $ | 258,213 | $ | (4,101 | ) | 2,085,497 | $ | (11,571 | ) | $ | 364,206 | ||||||||||||||||||||
Balance, June 30, 2019 | $ | 32,037 | 28,412,894 | $ | 3 | 18,000,000 | $ | 2 | $ | 126,693 | $ | 283,386 | $ | (8,118 | ) | 2,091,040 | $ | (11,638 | ) | $ | 390,328 | ||||||||||||||||||||
Exercise of stock options | — | 630,220 | 4,005 | 4,005 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | 413 | — | — | — | — | 413 | ||||||||||||||||||||||||||||||
Open market purchase of common shares | — | (10,000 | ) | — | — | — | — | — | — | 10,000 | (139 | ) | (139 | ) | |||||||||||||||||||||||||||
Unrealized loss from interest rate hedge, net | — | — | — | — | — | — | — | (1,135 | ) | — | — | (1,135 | ) | ||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | (356 | ) | — | — | (356 | ) | ||||||||||||||||||||||||||||
Contributions from redeemable non-controlling interests | 974 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Distributions to redeemable non-controlling interests | (364 | ) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net (loss) income | (539 | ) | — | — | — | — | — | 8,870 | — | — | — | 8,870 | |||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | 32,108 | 29,033,114 | $ | 3 | 18,000,000 | $ | 2 | $ | 131,111 | $ | 292,256 | $ | (9,609 | ) | 2,101,040 | $ | (11,777 | ) | $ | 401,986 |
Accumulated | |||||||||||||||||||||||||||||||||||||||||
Redeemable | Additional | Other | Total | ||||||||||||||||||||||||||||||||||||||
Non-Controlling | Class A Common Stock | Class B Common Stock | Paid-in | Retained | Comprehensive | Treasury Stock | Stockholders’ | ||||||||||||||||||||||||||||||||||
Interests | Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Shares | Amount | Equity | |||||||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | 10,338 | 27,533,049 | $ | 3 | 18,000,000 | $ | 2 | $ | 116,196 | $ | 235,844 | $ | (5,626 | ) | 1,873,266 | $ | (9,799 | ) | $ | 336,620 | ||||||||||||||||||||
Cumulative impact from the adoption of ASU No. 2014-09 | — | — | — | — | — | — | (4,454 | ) | — | — | — | (4,454 | ) | ||||||||||||||||||||||||||||
Cumulative impact from the adoption of ASU No. 2017-12 | — | — | — | — | — | — | 432 | (486 | ) | — | — | (54 | ) | ||||||||||||||||||||||||||||
Exercise of stock options | — | 625,215 | — | — | — | 4,114 | — | — | — | — | 4,114 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | 1,137 | — | — | — | — | 1,137 | ||||||||||||||||||||||||||||||
Employee stock purchase plan | — | 26,075 | — | — | — | 213 | — | — | — | — | 213 | ||||||||||||||||||||||||||||||
Open market purchase of common shares | — | (212,231 | ) | — | — | — | — | — | — | 212,231 | (1,772 | ) | (1,772 | ) | |||||||||||||||||||||||||||
Unrealized gain from interest rate hedge, net | — | — | — | — | — | — | — | 2,172 | — | — | 2,172 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | (161 | ) | — | — | (161 | ) | ||||||||||||||||||||||||||||
Contributions from redeemable non-controlling interests | 4,038 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Distributions to redeemable non-controlling interests | (307 | ) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net income | 516 | — | — | — | — | — | 26,391 | — | — | — | 26,391 | ||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | 14,585 | 27,972,108 | $ | 3 | 18,000,000 | $ | 2 | $ | 121,660 | $ | 258,213 | $ | (4,101 | ) | 2,085,497 | $ | (11,571 | ) | $ | 364,206 | ||||||||||||||||||||
Balance, December 31, 2018 | $ | 14,719 | 28,275,506 | $ | 3 | 18,000,000 | $ | 2 | $ | 124,651 | $ | 269,806 | $ | (5,949 | ) | 2,091,040 | $ | (11,638 | ) | $ | 376,875 | ||||||||||||||||||||
Cumulative impact from the adoptions of ASU -No. 2018-02 (Note 2) | — | — | — | — | — | — | 217 | (217 | ) | — | — | — | |||||||||||||||||||||||||||||
Exercise of stock options | — | 745,484 | — | — | — | 4,960 | — | — | — | — | 4,960 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | 1,195 | — | — | — | — | 1,195 | ||||||||||||||||||||||||||||||
Employee stock purchase plan | — | 22,124 | — | — | — | 305 | — | — | — | — | 305 | ||||||||||||||||||||||||||||||
Open market purchase of common shares | — | (10,000 | ) | — | — | — | — | — | — | 10,000 | (139 | ) | (139 | ) | |||||||||||||||||||||||||||
Unrealized loss from interest rate hedge, net | — | — | — | — | — | — | — | (3,732 | ) | — | — | (3,732 | ) | ||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | 289 | — | — | 289 | ||||||||||||||||||||||||||||||
Contributions from redeemable non-controlling interests | 20,482 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Distributions to redeemable non-controlling interests | (569 | ) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net (loss) income | (2,524 | ) | — | — | — | — | — | 22,233 | — | — | — | 22,233 | |||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | 32,108 | 29,033,114 | $ | 3 | 18,000,000 | $ | 2 | $ | 131,111 | $ | 292,256 | $ | (9,609 | ) | 2,101,040 | $ | (11,777 | ) | $ | 401,986 |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 19,709 | $ | 26,907 | |||
Adjustments to reconcile net income to cash flows from operating activities: | |||||||
Depreciation of energy assets | 26,338 | 19,699 | |||||
Depreciation of property and equipment | 2,115 | 1,573 | |||||
Amortization of debt issuance costs | 1,734 | 1,587 | |||||
Amortization of intangible assets | 681 | 771 | |||||
Accretion of ARO and contingent consideration | 98 | — | |||||
Provision for bad debts | (134 | ) | 483 | ||||
Loss on disposal / sale of assets | — | 300 | |||||
Gain on deconsolidation of VIE | (2,160 | ) | — | ||||
Net gain from derivatives | (1,072 | ) | (420 | ) | |||
Stock-based compensation expense | 1,195 | 1,137 | |||||
Deferred income taxes | 152 | 3,914 | |||||
Unrealized foreign exchange loss | 149 | 486 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (4,468 | ) | 2,073 | ||||
Accounts receivable retainage | (3,079 | ) | 3,008 | ||||
Federal ESPC receivable | (110,374 | ) | (111,982 | ) | |||
Inventory, net | (2,137 | ) | 10 | ||||
Costs and estimated earnings in excess of billings | (23,130 | ) | 28,704 | ||||
Prepaid expenses and other current assets | (11,084 | ) | 5,241 | ||||
Project development costs | (5,641 | ) | (6,984 | ) | |||
Other assets | (698 | ) | (1,371 | ) | |||
Accounts payable, accrued expenses and other current liabilities | (8,931 | ) | (16,532 | ) | |||
Billings in excess of cost and estimated earnings | (952 | ) | 11,166 | ||||
Other liabilities | (1,602 | ) | 227 | ||||
Income taxes payable | 2,566 | (2,038 | ) | ||||
Cash flows from operating activities | (120,725 | ) | (32,041 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (6,188 | ) | (2,961 | ) | |||
Purchases of energy assets | (72,140 | ) | (103,154 | ) | |||
Acquisitions, net of cash received | (1,279 | ) | (3,592 | ) | |||
Contributions to equity investment | (323 | ) | — | ||||
Cash flows from investing activities | (79,930 | ) | (109,707 | ) | |||
The accompanying notes are an integral part of these condensed consolidated financial statements. | |||||||
AMERESCO, INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued) | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows from financing activities: | |||||||
Payments of financing fees | $ | (541 | ) | $ | (3,667 | ) | |
Proceeds from exercises of options and ESPP | 5,265 | 4,327 | |||||
Repurchase of common stock | (139 | ) | (1,772 | ) | |||
Proceeds (payments) from senior secured credit facility, net | 41,343 | (900 | ) | ||||
Proceeds from long-term debt financings | 7,614 | 78,914 | |||||
Proceeds from Federal ESPC projects | 115,556 | 113,570 | |||||
Proceeds for energy assets from Federal ESPC | 1,639 | 2,269 | |||||
Proceeds from sale-leaseback financings | — | 5,145 | |||||
Contributions from redeemable non-controlling interests, net of distributions | 20,173 | 3,731 | |||||
Payments on long-term debt | (18,033 | ) | (22,825 | ) | |||
Cash flows from financing activities | 172,877 | 178,792 | |||||
Effect of exchange rate changes on cash | 249 | (124 | ) | ||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (27,529 | ) | 36,920 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 97,913 | 60,105 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 70,384 | $ | 97,025 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest | $ | 12,410 | $ | 9,618 | |||
Cash paid for income taxes | $ | 2,983 | $ | 2,018 | |||
Non-cash Federal ESPC settlement | $ | 214,444 | $ | 82,536 | |||
Accrued purchases of energy assets | $ | 17,224 | $ | 7,698 | |||
Conversion of revolver to term loan | $ | 25,000 | $ | 25,000 |
| Nine Months Ended September 30, | |||||||
| 2019 | 2018 | ||||||
Cash and cash equivalents | $ | 34,104 | $ | 64,539 | ||||
Short-term restricted cash | 13,498 | 13,461 | ||||||
Long-term restricted cash included in other assets | 22,782 | 19,025 | ||||||
Total cash and cash equivalents, and restricted cash | $ | 70,384 | $ | 97,025 |
US Regions | U.S. Federal | Canada | Non-Solar DG | All Other | Total | ||||||||||||||||||
Line of Business | |||||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Project revenue | $ | 72,667 | $ | 58,199 | $ | 9,380 | $ | 3,059 | $ | 2,592 | $ | 145,897 | |||||||||||
O&M revenue | 4,280 | 11,123 | — | 2,330 | 88 | 17,821 | |||||||||||||||||
Energy assets | 6,699 | 1,339 | 1,327 | 16,421 | — | 25,786 | |||||||||||||||||
Other | 433 | 597 | 1,958 | 65 | 19,469 | 22,522 | |||||||||||||||||
Total revenues | $ | 84,079 | $ | 71,258 | $ | 12,665 | $ | 21,875 | $ | 22,149 | $ | 212,026 | |||||||||||
Three months ended September 30, 2018 | |||||||||||||||||||||||
Project revenue | $ | 77,345 | $ | 49,762 | $ | 9,206 | $ | 1,268 | $ | 4,074 | $ | 141,655 | |||||||||||
O&M revenue | 4,432 | 10,733 | 15 | 2,006 | — | 17,186 | |||||||||||||||||
Energy assets | 4,064 | 1,507 | 921 | 18,790 | 222 | 25,504 | |||||||||||||||||
Other | 561 | 376 | 1,462 | 74 | 18,557 | 21,030 | |||||||||||||||||
Total revenues | $ | 86,402 | $ | 62,378 | $ | 11,604 | $ | 22,138 | $ | 22,853 | $ | 205,375 | |||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Project revenue | $ | 196,284 | $ | 134,954 | $ | 20,112 | $ | 6,318 | $ | 8,818 | $ | 366,486 | |||||||||||
O&M revenue | 11,580 | 30,370 | 5 | 6,771 | 109 | 48,835 | |||||||||||||||||
Energy assets | 18,063 | 2,958 | 2,585 | 52,612 | 582 | 76,800 | |||||||||||||||||
Other | 1,969 | 1,055 | 4,994 | 669 | 59,513 | 68,200 | |||||||||||||||||
Total revenues | $ | 227,896 | $ | 169,337 | $ | 27,696 | $ | 66,370 | $ | 69,022 | $ | 560,321 | |||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Project revenue | $ | 223,662 | $ | 135,037 | $ | 21,459 | $ | 3,368 | $ | 8,844 | $ | 392,370 | |||||||||||
O&M revenue | 12,396 | 29,477 | 34 | 6,260 | — | 48,167 | |||||||||||||||||
Energy assets | 12,844 | 3,416 | 2,304 | 50,405 | 821 | 69,790 | |||||||||||||||||
Other | 969 | 447 | 4,669 | 143 | 53,212 | 59,440 | |||||||||||||||||
Total revenues | $ | 249,871 | $ | 168,377 | $ | 28,466 | $ | 60,176 | $ | 62,877 | $ | 569,767 |
US Regions | U.S. Federal | Canada | Non-Solar DG | All Other | Total | ||||||||||||||||||
Geographical Regions | |||||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
United States | $ | 84,079 | $ | 71,258 | $ | 1,023 | $ | 21,875 | $ | 17,936 | $ | 196,171 | |||||||||||
Canada | — | — | 11,642 | — | 50 | 11,692 | |||||||||||||||||
Other | — | — | — | — | 4,163 | 4,163 | |||||||||||||||||
Total revenues | $ | 84,079 | $ | 71,258 | $ | 12,665 | $ | 21,875 | $ | 22,149 | $ | 212,026 | |||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||||
United States | $ | 86,402 | $ | 62,378 | $ | 419 | $ | 22,138 | $ | 17,445 | $ | 188,782 | |||||||||||
Canada | — | — | 11,185 | — | 33 | 11,218 | |||||||||||||||||
Other | — | — | — | — | 5,375 | 5,375 | |||||||||||||||||
Total revenues | $ | 86,402 | $ | 62,378 | $ | 11,604 | $ | 22,138 | $ | 22,853 | $ | 205,375 | |||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
United States | $ | 227,896 | $ | 169,337 | $ | 2,281 | $ | 66,370 | $ | 56,052 | $ | 521,936 | |||||||||||
Canada | — | — | 25,415 | — | 157 | 25,572 | |||||||||||||||||
Other | — | — | — | — | 12,813 | 12,813 | |||||||||||||||||
Total revenues | $ | 227,896 | $ | 169,337 | $ | 27,696 | $ | 66,370 | $ | 69,022 | $ | 560,321 | |||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
United States | $ | 249,871 | $ | 168,377 | $ | 1,587 | $ | 60,176 | $ | 51,336 | $ | 531,347 | |||||||||||
Canada | — | — | 26,879 | — | 261 | 27,140 | |||||||||||||||||
Other | — | — | — | — | 11,280 | 11,280 | |||||||||||||||||
Total revenues | $ | 249,871 | $ | 168,377 | $ | 28,466 | $ | 60,176 | $ | 62,877 | $ | 569,767 |
September 30, 2019 | December 31, 2018 | |||||||
Accounts receivable, net | $ | 91,755 | $ | 85,985 | ||||
Accounts receivable retainage, net | 16,652 | 13,516 | ||||||
Contract Assets: | ||||||||
Costs and estimated earnings in excess of billings | 124,652 | 86,842 | ||||||
Contract Liabilities: | ||||||||
Billings in excess of cost and estimated earnings | 28,768 | 30,706 |
September 30, 2018 | January 1, 2018 | |||||||
Accounts receivable, net | $ | 90,378 | $ | 85,121 | ||||
Accounts receivable retainage, net | 14,401 | 17,484 | ||||||
Contract Assets: | ||||||||
Costs and estimated earnings in excess of billings | 66,471 | 95,658 | ||||||
Contract Liabilities: | ||||||||
Billings in excess of cost and estimated earnings | 39,533 | 27,248 |
September 30, 2019 | December 31, 2018 | ||||||
Accounts receivable | $ | 150 | $ | 1,015 | |||
Prepaid expenses and other current assets | 2 | 12 | |||||
Property and equipment and energy assets | 315 | — | |||||
Intangibles | 500 | 680 | |||||
Goodwill | 315 | 2,845 | |||||
Accounts payable | (32 | ) | (67 | ) | |||
Billings in excess of cost and estimated earnings | (62 | ) | — | ||||
Purchase price | $ | 1,188 | $ | 4,485 | |||
Total, net of cash received | $ | 1,188 | $ | 4,485 | |||
Debt assumed | $ | — | $ | — | |||
Total fair value of consideration | $ | 1,188 | $ | 4,485 |
U.S. Regions | U.S. Federal | Canada | Non-solar DG | Other | Total | ||||||||||||||||||
Balance, December 31, 2018 | $ | 26,370 | $ | 4,609 | $ | 3,217 | $ | — | $ | 24,136 | $ | 58,332 | |||||||||||
Goodwill acquired during the year | 406 | — | — | — | — | 406 | |||||||||||||||||
Re-measurement adjustment | (91 | ) | (628 | ) | — | — | — | (719 | ) | ||||||||||||||
Currency effects | — | — | 95 | — | (215 | ) | (120 | ) | |||||||||||||||
Balance, September 30, 2019 | $ | 26,685 | $ | 3,981 | $ | 3,312 | $ | — | $ | 23,921 | $ | 57,899 | |||||||||||
Accumulated Goodwill Impairment | |||||||||||||||||||||||
Balance, December 31, 2018 | $ | — | $ | — | $ | (1,016 | ) | $ | — | $ | — | $ | (1,016 | ) | |||||||||
Balance, September 30, 2019 | $ | — | $ | — | $ | (1,016 | ) | $ | — | $ | — | $ | (1,016 | ) |
As of September 30, | As of December 31, | ||||||
2019 | 2018 | ||||||
Gross Carrying Amount | |||||||
Customer contracts | $ | 7,778 | $ | 7,818 | |||
Customer relationships | 12,438 | 12,082 | |||||
Non-compete agreements | 2,991 | 3,013 | |||||
Technology | 2,722 | 2,710 | |||||
Trade names | 543 | 541 | |||||
26,472 | 26,164 | ||||||
Accumulated Amortization | |||||||
Customer contracts | 7,695 | 7,668 | |||||
Customer relationships | 10,740 | 10,302 | |||||
Non-compete agreements | 2,991 | 3,013 | |||||
Technology | 2,707 | 2,651 | |||||
Trade names | 529 | 526 | |||||
24,662 | 24,160 | ||||||
Intangible assets, net | $ | 1,810 | $ | 2,004 |
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
Energy assets | $ | 693,916 | $ | 619,708 | |||
Less - accumulated depreciation and amortization | (186,157 | ) | (159,756 | ) | |||
Energy assets, net | $ | 507,759 | $ | 459,952 |
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
Financing lease assets | $ | 42,402 | $ | 42,402 | |||
Less - accumulated depreciation and amortization | (5,736 | ) | (4,139 | ) | |||
Financing lease assets, net | $ | 36,666 | $ | 38,263 |
Gross Unrecognized Tax Benefits | |||
Balance, December 31, 2018 | $ | 1,600 | |
Additions for prior year tax positions | — | ||
Settlements with tax authorities | — | ||
Reductions of prior year tax positions | — | ||
Balance, September 30, 2019 | $ | 1,600 |
As of January 1, 2019 | |||||||||||
As Reported | 842 Adjustment | Adjusted Balances | |||||||||
Operating Leases: | |||||||||||
Operating lease assets | $ | — | $ | 31,639 | $ | 31,639 | |||||
Current portions of operating lease liabilities | — | 5,084 | 5,084 | ||||||||
Long-term portions of operating lease liabilities | — | 28,480 | 28,480 | ||||||||
Total operating lease liabilities | $ | — | $ | 33,564 | $ | 33,564 | |||||
Weighted-average remaining lease term | 10 years | ||||||||||
Weighted-average discount rate | 6.0 | % | |||||||||
Financing Leases: | |||||||||||
Energy assets, net | $ | 38,263 | $ | — | $ | 38,263 | |||||
Current portions of financing lease liabilities | 4,956 | — | 4,956 | ||||||||
Long-term financing lease liabilities, less current portions and net of deferred financing fees | 28,407 | — | 28,407 | ||||||||
Total financing lease liabilities | $ | 33,363 | $ | — | $ | 33,363 | |||||
Weighted-average remaining lease term | 18 years | ||||||||||
Weighted-average discount rate | 11.7 | % |
September 30, 2019 | |||
Operating Leases: | |||
Operating lease assets | $ | 32,540 | |
Current operating lease liabilities | 5,935 | ||
Long-term portions of operating lease liabilities | 28,799 | ||
Total operating lease liabilities | $ | 34,734 | |
Weighted-average remaining lease term | 10 years | ||
Weighted-average discount rate | 6.3 | % | |
Financing Leases: | |||
Energy assets, net | $ | 36,666 | |
Current portions of financing lease liabilities | 5,008 | ||
Long-term financing lease liabilities, less current portions and net of deferred financing fees | 26,098 | ||
Total financing lease liability | $ | 31,106 | |
Weighted-average remaining lease term | 17 years | ||
Weighted-average discount rate | 11.8 | % |
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||
Operating Lease: | |||||||
Operating lease costs | $ | 1,913 | $ | 5,660 | |||
Financing Lease: | |||||||
Amortization expense | 533 | 1,597 | |||||
Interest on lease liabilities | 854 | 2,750 | |||||
Total lease costs | $ | 3,300 | $ | 10,007 |
Operating Leases | Financing Leases | ||||||
Year ended December 31, | |||||||
2019 | $ | 1,851 | $ | 4,302 | |||
2020 | 7,523 | 7,881 | |||||
2021 | 6,156 | 6,775 | |||||
2022 | 5,600 | 5,173 | |||||
2023 | 4,348 | 3,686 | |||||
Thereafter | 22,977 | 26,799 | |||||
Total minimum lease payments | $ | 48,455 | $ | 54,616 | |||
Less: interest | 13,721 | 23,510 | |||||
Present value of lease liabilities | $ | 34,734 | $ | 31,106 |
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
Financing lease assets, net | $ | 36,666 | $ | 38,263 | |||
Deferred loss, short-term, net | 115 | 115 | |||||
Deferred loss, long-term, net | 1,830 | 1,917 | |||||
Total deferred loss | $ | 1,945 | $ | 2,032 | |||
Financing lease liabilities, short-term | 5,008 | 4,956 | |||||
Financing lease liabilities, long-term | 26,098 | 28,407 | |||||
Total financing lease liabilities | $ | 31,106 | $ | 33,363 | |||
Deferred gain, short-term, net | 345 | 345 | |||||
Deferred gain, long-term, net | 5,549 | 5,808 | |||||
Total deferred gain | $ | 5,894 | $ | 6,153 |
Fair Value as of | |||||||||
September 30, | December 31, | ||||||||
Level | 2019 | 2018 | |||||||
Assets: | |||||||||
Interest rate swap instruments | 2 | $ | 41 | $ | 733 | ||||
Commodity swap instruments | 2 | 167 | 33 | ||||||
Total assets | $ | 208 | $ | 766 | |||||
Liabilities: | |||||||||
Interest rate swap instruments | 2 | $ | 7,600 | $ | 3,187 | ||||
Commodity swap instruments | 2 | — | 70 | ||||||
Interest make-whole provisions | 2 | 873 | 1,808 | ||||||
Contingent revenue earn-out | 3 | 1,028 | 962 | ||||||
Total liabilities | $ | 9,501 | $ | 6,027 |
Nine Months Ended | |||
September 30, 2019 | |||
Contingent consideration liabilities balance at December 31, 2018 | $ | 962 | |
Changes in the fair value of contingent consideration obligation | $ | 66 | |
Contingent consideration liabilities balance at September 30, 2019 | $ | 1,028 |
As of September 30, 2019 | As of December 31, 2018 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Long-term debt (Level 2) | $ | 249,404 | $ | 247,618 | $ | 211,823 | $ | 212,687 |
Derivatives as of | |||||||||||
September 30, 2019 | December 31, 2018 | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||
Interest rate swap contracts | Other assets | $ | 41 | Other assets | $ | 703 | |||||
Interest rate swap contracts | Other liabilities | 7,565 | Other liabilities | 3,187 | |||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||
Interest rate swap contracts | Other assets | $ | — | Other assets | $ | 30 | |||||
Interest rate swap contracts | Other liabilities | 35 | Other liabilities | — | |||||||
Commodity swap contracts | Other assets | 167 | Other assets | 33 | |||||||
Commodity swap contracts | Other liabilities | — | Other liabilities | 70 | |||||||
Interest make-whole provisions | Other liabilities | 873 | Other liabilities | 1,808 |
Location of (Gain) Loss Recognized in Net Income | Amount of (Gain) Loss Recognized in Net Income | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||
Interest rate swap contracts | Other expenses, net | $ | 44 | $ | (41 | ) | $ | (6 | ) | $ | (166 | ) | |||||
Derivatives not Designated as Hedging Instruments: | |||||||||||||||||
Interest rate swap contracts | Other expenses, net | $ | (3 | ) | $ | (271 | ) | $ | 66 | $ | (344 | ) | |||||
Commodity swap contracts | Other expenses, net | $ | (31 | ) | $ | (33 | ) | $ | (203 | ) | $ | 12 | |||||
Interest make-whole provision | Other expenses, net | $ | (150 | ) | $ | 16 | $ | (935 | ) | $ | 16 |
Nine Months Ended | |||
September 30, 2019 | |||
Derivatives Designated as Hedging Instruments: | |||
Accumulated loss in AOCI at the beginning of the period | $ | (1,824 | ) |
Cumulative impact from the adoption of ASU No. 2018-02 | (217 | ) | |
Unrealized loss recognized in AOCI | (3,714 | ) | |
Gain reclassified from AOCI to other expenses, net | 7 | ||
Accumulated loss in AOCI at the end of the period | $ | (5,748 | ) |
Active Interest Rate Swap | Effective Date | Expiration Date | Initial Notional Amount ($) | Status | ||
11-Year, 5.77% Fixed | October 2018 | October 2029 | $ | 9,200 | Designated | |
15-Year, 3.19% Fixed | June 2018 | June 2033 | 10,000 | Designated | ||
3-Year, 2.46% Fixed | March 2018 | December 2020 | 17,100 | Not Designated | ||
10-Year, 4.74% Fixed | June 2017 | December 2027 | 14,100 | Designated | ||
15-Year, 3.26% Fixed | February 2023 | December 2038 | 14,084 | Designated | ||
7-Year, 2.19% Fixed | February 2016 | February 2023 | 20,746 | Designated | ||
8-Year, 3.70% Fixed | March 2020 | June 2028 | 14,643 | Designated | ||
8-Year, 3.70% Fixed | March 2020 | June 2028 | 10,734 | Designated | ||
8-Year, 1.71% Fixed | October 2012 | March 2020 | 9,665 | Designated | ||
8-Year, 1.71% Fixed | October 2012 | March 2020 | 7,085 | Designated | ||
15-Year, 5.30% Fixed | February 2006 | February 2021 | 3,256 | Designated | ||
15.5-Year, 5.40% Fixed | September 2008 | March 2024 | 13,081 | Designated |
Active Commodity Swap | Effective Date | Expiration Date | Initial Notional Amount (Volume) | Commodity Measurement | Status | |
1-Year, $2.68 MMBtu Fixed | May 2019 | April 2020 | 437,004 | MMBtus | Not Designated | |
1-Year, $2.70 MMBtu Fixed | May 2020 | April 2021 | 435,810 | MMBtus | Not Designated |
Other Derivatives | Classification | Effective Date | Expiration Date | Fair Value ($) | ||
Interest make-whole provisions | Liability | June/August 2018 | December 2038 | $ | 873 |
September 30, | December 31, | ||||||
2019(1) | 2018(1) | ||||||
Cash and cash equivalents | $ | 2,777 | $ | 1,255 | |||
Restricted cash | 156 | 156 | |||||
Accounts receivable, net | 695 | 374 | |||||
Costs and estimated earnings in excess of billings | 2,531 | 498 | |||||
Prepaid expenses and other current assets | 134 | 190 | |||||
Total VIE current assets | 6,293 | 2,473 | |||||
Property and equipment, net | 285 | — | |||||
Energy assets, net | 121,918 | 122,641 | |||||
Operating lease assets | 6,048 | — | |||||
Other assets | 1,669 | 1,613 | |||||
Total VIE assets | $ | 136,213 | $ | 126,727 | |||
Current portions of long-term debt and financing lease liabilities | $ | 2,270 | $ | 1,712 | |||
Accounts payable | 149 | 234 | |||||
Accrued expenses and other current liabilities | 3,948 | 4,146 | |||||
Current portions of operating lease liabilities | 91 | — | |||||
Total VIE current liabilities | 6,458 | 6,092 | |||||
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | 25,493 | 26,461 | |||||
Deferred income taxes, net | 460 | — | |||||
Long-term portions of operating lease liabilities | 6,264 | — | |||||
Other liabilities | 873 | 2,131 | |||||
Total VIE liabilities | $ | 39,548 | $ | 34,684 |
• | a VIE that must be consolidated because the Company is the primary beneficiary or the joint venture is not a VIE and the Company holds the majority voting interest with no significant participative rights available to the other partners; or |
• | a VIE that does not require consolidation and is treated as an equity method investment because the Company is not the primary beneficiary or the joint venture is not a VIE and the Company does not hold the majority voting interest. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income attributable to common shareholders | $ | 8,870 | $ | 10,701 | $ | 22,233 | $ | 26,391 | ||||||||
Basic weighted-average shares outstanding | 46,555 | 45,854 | 46,413 | 45,599 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | 1,138 | 1,090 | 1,262 | 910 | ||||||||||||
Diluted weighted-average shares outstanding | 47,693 | 46,944 | 47,675 | 46,509 |
U.S. Regions | U.S. Federal | Canada | Non-Solar DG | All Other | Total Consolidated | ||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Revenues | $ | 84,079 | $ | 71,258 | $ | 12,665 | $ | 21,875 | $ | 22,149 | $ | 212,026 | |||||||||||
Interest income | 69 | 92 | — | 21 | — | 182 | |||||||||||||||||
Interest expense | 1,548 | 209 | 179 | 1,213 | — | 3,149 | |||||||||||||||||
Depreciation and amortization of intangible assets | 2,538 | 901 | 396 | 5,149 | 429 | 9,413 | |||||||||||||||||
Unallocated corporate activity | — | — | — | — | — | (8,482 | ) | ||||||||||||||||
Income before taxes, excluding unallocated corporate activity | 3,350 | 10,967 | 1,577 | 977 | 881 | 17,752 | |||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||||
Revenues | $ | 86,402 | $ | 62,378 | $ | 11,604 | $ | 22,138 | $ | 22,853 | $ | 205,375 | |||||||||||
Interest income | 2 | 36 | — | 38 | — | 76 | |||||||||||||||||
Interest expense | 1,403 | 225 | 480 | 1,681 | (13 | ) | 3,776 | ||||||||||||||||
Depreciation and amortization of intangible assets | 1,341 | 671 | 294 | 4,530 | 378 | 7,214 | |||||||||||||||||
Unallocated corporate activity | — | — | — | — | — | (8,648 | ) | ||||||||||||||||
Income before taxes, excluding unallocated corporate activity | 5,256 | 10,969 | 664 | 3,851 | 1,959 | 22,699 | |||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Revenues | $ | 227,896 | $ | 169,337 | $ | 27,696 | $ | 66,370 | $ | 69,022 | $ | 560,321 | |||||||||||
Interest income | 132 | 160 | — | 65 | 39 | 396 | |||||||||||||||||
Interest expense | 4,118 | 627 | 517 | 4,075 | — | 9,337 | |||||||||||||||||
Depreciation and amortization of intangible assets | 7,184 | 2,524 | 986 | 16,051 | 1,153 | 27,898 | |||||||||||||||||
Unallocated corporate activity | — | — | — | — | — | (25,331 | ) | ||||||||||||||||
Income before taxes, excluding unallocated corporate activity | 5,530 | 26,631 | 1,529 | 5,758 | 7,592 | 47,040 | |||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Revenues | $ | 249,871 | $ | 168,377 | $ | 28,466 | $ | 60,176 | $ | 62,877 | $ | 569,767 | |||||||||||
Interest income | 5 | 84 | — | 120 | — | 209 | |||||||||||||||||
Interest expense | 3,911 | 771 | 1,464 | 4,575 | — | 10,721 | |||||||||||||||||
Depreciation and amortization of intangible assets | 4,048 | 2,004 | 873 | 12,942 | 1,134 | 21,001 | |||||||||||||||||
Unallocated corporate activity | — | — | — | — | — | (23,269 | ) | ||||||||||||||||
Income (loss) before taxes, excluding unallocated corporate activity | 14,606 | 26,864 | (1,983 | ) | 8,796 | 3,771 | 52,054 |
Commencement Date | Maturity Date | Acceleration Clause(2) | Rate as of | |||||||||
September 30, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
Senior secured credit facility, interest at varying rates monthly in arrears | June 2015 | June 2024 | NA | 3.84 | % | $ | 81,410 | $ | 43,074 | |||
Variable rate term loan payable in semi-annual installments | January 2006 | February 2021 | Yes | 4.34 | % | 774 | 936 | |||||
Variable rate term loan payable in semi-annual installments | January 2006 | June 2024 | Yes | 4.09 | % | 6,953 | 7,426 | |||||
Term loan payable in quarterly installments | March 2011 | March 2021 | Yes | 7.25 | % | 993 | 1,464 | |||||
Term loan payable in monthly installments | October 2011 | June 2028 | NA | 6.11 | % | 3,606 | 3,843 | |||||
Variable rate term loan payable in quarterly installments | October 2012 | June 2020 | NA | 5.59 | % | 28,844 | 30,674 | |||||
Variable rate term loan payable in quarterly installments | September 2015 | March 2023 | NA | 4.59 | % | 16,782 | 17,208 | |||||
Term loan payable in quarterly installments | August 2016 | July 2031 | NA | 4.95 | % | 3,753 | 3,925 | |||||
Term loan payable in quarterly installments | March 2017 | March 2028 | NA | 5.00 | % | 3,627 | 3,945 | |||||
Term loan payable in monthly installments | April 2017 | April 2027 | NA | 4.50 | % | 23,211 | 22,081 | |||||
Term loan payable in quarterly installments | April 2017 | February 2034 | NA | 5.61 | % | 2,661 | 2,735 | |||||
Variable rate term loan payable in quarterly installments | June 2017 | December 2027 | NA | 4.54 | % | 12,330 | 12,915 | |||||
Variable rate term loan payable in quarterly installments | February 2018 | August 2022 | Yes | 9.59 | % | 16,366 | 21,475 | |||||
Term loan payable in quarterly installments | June 2018 | December 2038 | Yes | 5.15 | % | 29,463 | 30,069 | |||||
Variable rate term loan payable in semi-annual installments | June 2018 | June 2033 | Yes | 4.14 | % | 9,337 | 9,668 | |||||
Variable rate term loan payable in monthly/quarterly installments | October 2018 | October 2029 | Yes | 4.60 | % | 9,086 | 9,072 | |||||
Long term finance liability in semi-annual installments | July 2019 | July 2039 | NA | 0.28 | % | 4,872 | — | |||||
Financing leases(1) | 31,106 | 33,363 | ||||||||||
$ | 285,174 | $ | 253,873 | |||||||||
Less - current maturities | 54,958 | 26,890 | ||||||||||
Less - deferred financing fees | 6,450 | 7,821 | ||||||||||
Long term debt and financing lease liabilities | $ | 223,766 | $ | 219,162 |
• | Revenue Recognition; |
• | Energy Assets; |
• | Leases; |
• | Goodwill and Intangible Assets; |
• | Derivative Financial Instruments; and |
• | Variable Interest Entities. |
Three Months Ended September 30, | |||||||||||||
2019 | 2018 | ||||||||||||
Dollar | % of | Dollar | % of | ||||||||||
Amount | Revenues | Amount | Revenues | ||||||||||
Revenues | $ | 212,026 | 100.0 | % | $ | 205,375 | 100.0 | % | |||||
Cost of revenues | 167,333 | 78.9 | % | 159,213 | 77.5 | % | |||||||
Gross profit | 44,693 | 21.1 | % | 46,162 | 22.5 | % | |||||||
Selling, general and administrative expenses | 31,231 | 14.7 | % | 28,866 | 14.1 | % | |||||||
Operating income | 13,462 | 6.3 | % | 17,296 | 8.4 | % | |||||||
Other expenses, net | 4,192 | 2.0 | % | 3,244 | 1.6 | % | |||||||
Income before provision from income taxes | 9,270 | 4.4 | % | 14,052 | 6.8 | % | |||||||
Income tax provision | 939 | 0.4 | % | 3,351 | 1.6 | % | |||||||
Net income | 8,331 | 3.9 | % | 10,701 | 5.2 | % | |||||||
Net loss attributable to redeemable non-controlling interest | 539 | 0.3 | % | — | — | % | |||||||
Net income attributable to common shareholders | $ | 8,870 | 4.2 | % | $ | 10,701 | 5.2 | % | |||||
Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | ||||||||||||
Dollar | % of | Dollar | % of | ||||||||||
Amount | Revenues | Amount | Revenues | ||||||||||
Revenues | $ | 560,321 | 100.0 | % | $ | 569,767 | 100.0 | % | |||||
Cost of revenues | 439,857 | 78.5 | % | 445,356 | 78.2 | % | |||||||
Gross profit | 120,464 | 21.5 | % | 124,411 | 21.8 | % | |||||||
Selling, general and administrative expenses | 87,396 | 15.6 | % | 84,871 | 14.9 | % | |||||||
Operating income | 33,068 | 5.9 | % | 39,540 | 6.9 | % | |||||||
Other expenses, net | 11,359 | 2.0 | % | 10,754 | 1.9 | % | |||||||
Income before provision from income taxes | 21,709 | 3.9 | % | 28,786 | 5.1 | % | |||||||
Income tax provision | 2,000 | 0.4 | % | 1,879 | 0.3 | % | |||||||
Net income | 19,709 | 3.5 | % | 26,907 | 4.7 | % | |||||||
Net loss (income) attributable to redeemable non-controlling interest | 2,524 | 0.5 | % | (516 | ) | (0.1 | )% | ||||||
Net income attributable to common shareholders | $ | 22,233 | 4.0 | % | $ | 26,391 | 4.6 | % |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 212,026 | $ | 205,375 | $ | 6,651 | 3.2 | % | ||||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 560,321 | $ | 569,767 | $ | (9,446 | ) | (1.7 | )% |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Cost of revenues | $ | 167,333 | $ | 159,213 | $ | 8,120 | 5.1 | % | ||||||
Gross margin | 21.1 | % | 22.5 | % | ||||||||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Cost of revenues | $ | 439,857 | $ | 445,356 | $ | (5,499 | ) | (1.2 | )% | |||||
Gross margin | 21.5 | % | 21.8 | % |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Selling, general and administrative expenses | $ | 31,231 | $ | 28,866 | $ | 2,365 | 8.2 | % | ||||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Selling, general and administrative expenses | $ | 87,396 | $ | 84,871 | $ | 2,525 | 3.0 | % |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 84,079 | $ | 86,402 | $ | (2,323 | ) | (2.7 | )% | |||||
Income before taxes | $ | 3,350 | $ | 5,256 | $ | (1,906 | ) | (36.3 | )% | |||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 227,896 | $ | 249,871 | $ | (21,975 | ) | (8.8 | )% | |||||
Income before taxes | $ | 5,530 | $ | 14,606 | $ | (9,076 | ) | (62.1 | )% |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 71,258 | $ | 62,378 | $ | 8,880 | 14.2 | % | ||||||
Income before taxes | $ | 10,967 | $ | 10,969 | $ | (2 | ) | — | % | |||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 169,337 | $ | 168,377 | $ | 960 | 0.6 | % | ||||||
Income before taxes | $ | 26,631 | $ | 26,864 | $ | (233 | ) | (0.9 | )% |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 12,665 | $ | 11,604 | $ | 1,061 | 9.1 | % | ||||||
Income before taxes | $ | 1,577 | $ | 664 | $ | 913 | 137.5 | % | ||||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 27,696 | $ | 28,466 | $ | (770 | ) | (2.7 | )% | |||||
Income (loss) before taxes | $ | 1,529 | $ | (1,983 | ) | $ | 3,512 | 177.1 | % |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 21,875 | $ | 22,138 | $ | (263 | ) | (1.2 | )% | |||||
Income before taxes | $ | 977 | $ | 3,851 | $ | (2,874 | ) | (74.6 | )% | |||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 66,370 | $ | 60,176 | $ | 6,194 | 10.3 | % | ||||||
Income before taxes | $ | 5,758 | $ | 8,796 | $ | (3,038 | ) | (34.5 | )% |
Three Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 22,149 | $ | 22,853 | $ | (704 | ) | (3.1 | )% | |||||
Income before taxes | $ | 881 | $ | 1,959 | $ | (1,078 | ) | (55.0 | )% | |||||
Unallocated corporate activity | $ | (8,482 | ) | $ | (8,648 | ) | $ | 166 | 1.9 | % | ||||
Nine Months Ended September 30, | Dollar | Percentage | ||||||||||||
2019 | 2018 | Change | Change | |||||||||||
Revenues | $ | 69,022 | $ | 62,877 | $ | 6,145 | 9.8 | % | ||||||
Income before taxes | $ | 7,592 | $ | 3,771 | $ | 3,821 | 101.3 | % | ||||||
Unallocated corporate activity | $ | (25,331 | ) | $ | (23,269 | ) | $ | (2,062 | ) | (8.9 | )% |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 1, 2019 - July 31, 2019 | — | — | — | $ | 6,047,027 | ||||||||
August 1, 2019 - August 31, 2019 | — | — | — | $ | 6,047,027 | ||||||||
September 1, 2019 - September 30, 2019 | 10,000 | 13.93 | 10,000 | $ | 5,907,722 | ||||||||
Total | 10,000 | $ | 13.93 | 10,000 | $ | 5,907,722 |
Exhibit Number | Description |
31.1* | |
31.2* | |
32.1** | |
101* | The following condensed consolidated financial statements from Ameresco, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statement of Changes in Redeemable Non-Controlling Interests and Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. |
*Filed herewith. | |
+ Identifies a management contract or compensatory plan or arrangement in which an executive officer or director of Ameresco participates. | |
**Furnished herewith. |
AMERESCO, INC. | ||||
Date: November 5, 2019 | By: | /s/ Spencer Doran Hole | ||
Spencer Doran Hole | ||||
Senior Vice President and Chief Financial Officer (duly authorized and principal financial officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Ameresco, Inc. (the “Registrant”); | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; | ||
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: | ||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and | ||
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): | ||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: November 5, 2019 | /s/ George P. Sakellaris | |||||
George P. Sakellaris | ||||||
President and Chief Executive Officer (principal executive officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Ameresco, Inc. (the “Registrant”); | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; | ||
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: | ||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and | ||
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): | ||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: November 5, 2019 | /s/ Spencer Doran Hole | |||||
Spencer Doran Hole | ||||||
Senior Vice President and Chief Financial Officer (duly authorized and principal financial officer) | ||||||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | |||||
Date: November 5, 2019 | /s/ George P. Sakellaris | |||||
George P. Sakellaris | ||||||
President and Chief Executive Officer (principal executive officer) | ||||||
Date: November 5, 2019 | /s/ Spencer Doran Hole | |||||
Spencer Doran Hole | ||||||
Senior Vice President and Chief Financial Officer (duly authorized and principal financial officer) | ||||||
Business Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operational Results by Business Segments | An analysis of the Company’s business segment information and reconciliation to the condensed consolidated financial statements is as follows:
|
Fair Value Measurement (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Liabilities Measured on a Recurring Basis | The following table presents the input level used to determine the fair values of the Company’s financial instruments measured at fair value on a recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes In Fair Value Of Contingent Liabilities Classified as Level 3 | The following table sets forth a summary of changes in fair value of contingent liabilities classified as Level 3 for the nine months ended September 30, 2019:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value and Carrying Value for Company's Long-Term Debt | Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt, excluding financing leases, are as follows:
|
Revenue from Contracts with Customers |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table provides information about disaggregated revenue by line of business, reportable segments, and geographical region for the three and nine months ended September 30, 2019 and 2018.
Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:
Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. Unbilled revenue, presented as costs and estimated earnings in excess of billings, represent amounts earned and billable that were not invoiced at the end of the fiscal period. Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights to consideration are generally unconditional at the time its performance obligations are satisfied. At the inception of a contract, the Company expects the period between when it satisfies its performance obligations, and when the customer pays for the services, will be one year or less. As such, the Company has elected to apply the practical expedient which allows the Company to not adjust the promised amount of consideration for the effects of a significant financing component, when a financing component is present. When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs incurred and advanced payments received on project contracts. As of September 30, 2019 and December 31, 2018, the Company classified $5,534 and $6,343, respectively, as a non-current liability, included in other liabilities on the condensed consolidated balance sheets, for those performance obligations expected to be completed beyond the next twelve months. The increase in contract assets for the nine months ended September 30, 2019 was primarily due to revenue recognized of approximately $351,180, offset in part by billings of approximately $321,344. The increase in contract liabilities was primarily driven by recognition of revenue as performance obligations were satisfied exceeding increases from the receipt of advance payments from customers, and related billings. For the nine months ended September 30, 2019, the Company recognized revenue of $58,594 that was previously included in the beginning balance of contract liabilities, and billed customers $53,652. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments. The decrease in contract assets for the nine months ended September 30, 2018 was primarily due to billings of approximately $398,917, offset in part by revenue recognized of $344,768. The decrease in contract liabilities was primarily driven by reductions from recognition of revenue as performance obligations were satisfied exceeding the receipt of advance payments from customers, and related billings. For the nine months ended September 30, 2018, the Company recognized revenue of $116,892 that was previously included in the beginning balance of contract liabilities, and billed customers $119,961. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments. Contracts are often modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods or services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligations are satisfied as of a point in time or over time and are supported by contracts with customers. For most of the Company’s contracts, there are multiple promises of goods or services. Typically, the Company provides a significant service of integrating a complex set of tasks and components such as design, engineering, construction management, and equipment procurement for a project contract. The bundle of goods and services are provided to deliver one output for which the customer has contracted. In these cases, the Company considers the bundle of goods and services to be a single performance obligation. The Company may also promise to provide distinct goods or services within a contract, such as a project contract for installation of energy conservation measures and post-installation O&M services. In these cases the Company separates the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Backlog - The Company’s remaining performance obligations (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments and the backlog may fluctuate with currency movements. In addition, our customers have the right, under some circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. At September 30, 2019, the Company had backlog of approximately $1,696,200. Approximately 29% of our September 30, 2019 backlog is anticipated to be recognized as revenue in the next twelve months and the remaining, thereafter. The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed. Contract Acquisition Costs The Company accounts for certain acquisition costs over the life of the contract, consisting primarily of commissions when paid. Commission costs are incurred commencing at contract signing. Commission costs are allocated across all performance obligations and deferred and amortized over the contract term of each performance obligations’ completion period. For contracts that have a duration of less than one year, the Company follows a practical expedient and expenses these costs when incurred. During the three and nine months ended September 30, 2019 and 2018, the amortization of commission costs related to contracts was not material and has been included in the accompanying condensed consolidated statements of income. The Company capitalizes costs incurred related to the development of projects prior to contract signing as it is partial fulfillment of its performance obligations. Capitalized project development costs include only those costs incurred in connection with the development of energy projects, primarily direct labor, interest costs, outside contractor services, consulting fees, legal fees and travel, if incurred after a point in time where the realization of related revenue becomes probable. Project development costs incurred prior to the probable realization of revenue are expensed as incurred. The Company classifies as a current asset those project development efforts that are expected to proceed to construction activity in the twelve months that follow. The Company periodically reviews these balances and writes off any amounts where the realization of the related revenue is no longer probable. Project development costs of $1,673 and $639 were included in other long-term assets as of September 30, 2019 and December 31, 2018, respectively. During the three months ended September 30, 2019 and 2018, $2,048 and $7,561, respectively, of project development costs were recognized in the condensed consolidated statements of income on projects that converted to customer contracts. During the nine months ended September 30, 2019 and 2018, $13,081 and $13,571, respectively, of project development costs were recognized in the condensed consolidated statements of income on projects that converted to customer contracts. No impairment charges in connection with the Company’s commission costs or project development costs were recorded during the periods ended September 30, 2019 and 2018. |
Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The Company recorded a provision for income taxes of $939 and $3,351, respectively, for the three months ended September 30, 2019 and 2018. The Company recorded a provision for income taxes of $2,000 for the nine months ended September 30, 2019 and a provision for income taxes of $1,879 for the nine months ended September 30, 2018. The estimated effective annualized tax rate impacted by discrete items is 10.1% for the three months ended September 30, 2019 compared to a 23.8% estimated effective annualized tax rate impacted by the period discrete items for the three months ended September 30, 2018. The estimated effective annualized tax rate impacted by period discrete items is 9.2% for the nine months ended September 30, 2019 compared to 6.5% for the nine months ended September 30, 2018. The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2019 were the effects of investment tax credits to which the Company is entitled from solar plants which have been placed into service or are forecasted to be placed into service during 2019. The principle reasons for the difference between the statutory rate and the estimated annual effective tax rate for 2018 were the effects of a $5,900 benefit of the 2017 Section 179D deduction, which was extended in February 2018 and was included as a tax deduction in 2018, and the use of investment tax credits to which the Company is entitled from owned plants. The investment tax credits and production tax credits to which the Company may be entitled fluctuate from year to year based on the cost of the renewable energy plants the Company places or expects to place in service and production levels at company owned facilities in that year. As part of the Bipartisan Budget Act signed into law on February 9, 2018 the Section 179D deduction for 2017 was retroactively extended. The Section 179D deduction has not been re-approved for tax years beginning after 2017. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
At September 30, 2019 and December 31, 2018, the Company had approximately $1,600 of total gross unrecognized tax benefits. At September 30, 2019 and December 31, 2018, the Company had approximately $705 of total gross unrecognized tax benefits (both net of the federal benefit on state amounts) representing the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. The Company has presented all deferred tax assets and liabilities as net liabilities and noncurrent on its condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018. |
Derivative Instruments and Hedging Activities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES At September 30, 2019 and December 31, 2018, the following table presents information about the fair value amounts of the Company’s derivative instruments are as follows:
As of September 30, 2019 and December 31, 2018 all but three and four, respectively, of the Company’s freestanding derivatives were designated as hedging instruments. The following tables present information about the effects of the Company’s derivative instruments on the condensed consolidated statements of income and condensed consolidated statements of comprehensive income:
In the third quarter of 2018, the Company adopted ASU 2017-12, which resulted in an increase to retained earnings of $432 and accumulated other comprehensive loss of $486 to remove the cumulative effect of hedging ineffectiveness previously recognized in earnings, as of July 1, 2018, for contracts designated as hedging instruments that were outstanding at the beginning of the third quarter 2018. Upon adoption of the ASU, the impact to reclassify the ineffectiveness of the Company’s hedge instruments in connection with prior periods was recorded. Accordingly, the Company’s condensed consolidated statement of changes in redeemable non-controlling interests and stockholders’ equity for the nine months ended September 30, 2018 reflect the adoption of ASU 2017-12. The following tables present a listing of all the Company’s active derivative instruments as of September 30, 2019:
|
Non-Controlling Interests and Equity (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2015 |
Sep. 30, 2019 |
|
Variable Interest Entity [Line Items] | |||||
Term of extension of call option | 6 months | 6 months | 6 months | 6 months | |
Term of extension of put option | 6 months | 1 year | 1 year | ||
Percentage of investor contributed capital balance, percentage | 7.00% | ||||
Redeemable non-controlling interests | $ 14,719 | $ 32,108 | |||
Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Exercise price of put options | 659 | ||||
Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Exercise price of put options | $ 917 |
Leases - Adoption of New Leasing Standard (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
||||
---|---|---|---|---|---|---|---|
Operating Leases: | |||||||
Operating lease assets | $ 32,540 | [1] | $ 31,639 | $ 0 | [1] | ||
Current portions of operating lease liabilities | 5,935 | [1] | 5,084 | 0 | |||
Long-term portions of operating lease liabilities | 28,799 | [1] | 28,480 | 0 | |||
Total operating lease liabilities | $ 34,734 | $ 33,564 | |||||
Operating lease, weighted-average remaining lease term | 10 years | 10 years | |||||
Operating lease, weighted-average discount rate | 6.30% | 6.00% | |||||
Financing Leases: | |||||||
Energy assets, net | $ 36,666 | $ 38,263 | 38,263 | ||||
Current portions of financing lease liabilities | 5,008 | 4,956 | |||||
Long-term financing lease liabilities, less current portions and net of deferred financing fees | 26,098 | 28,407 | |||||
Total financing lease liability | $ 31,106 | $ 33,363 | $ 33,363 | ||||
Financing lease, weighted-average remaining lease term | 17 years | 18 years | |||||
Financing lease, weighted-average discount rate | 11.80% | 11.70% | |||||
As Reported | |||||||
Operating Leases: | |||||||
Operating lease assets | $ 0 | ||||||
Current portions of operating lease liabilities | 0 | ||||||
Long-term portions of operating lease liabilities | 0 | ||||||
Total operating lease liabilities | 0 | ||||||
Financing Leases: | |||||||
Energy assets, net | 38,263 | ||||||
Current portions of financing lease liabilities | 4,956 | ||||||
Long-term financing lease liabilities, less current portions and net of deferred financing fees | 28,407 | ||||||
Total financing lease liability | 33,363 | ||||||
842 Adjustment | |||||||
Operating Leases: | |||||||
Operating lease assets | 31,639 | ||||||
Current portions of operating lease liabilities | 5,084 | ||||||
Long-term portions of operating lease liabilities | 28,480 | ||||||
Total operating lease liabilities | 33,564 | ||||||
Financing Leases: | |||||||
Energy assets, net | 0 | ||||||
Current portions of financing lease liabilities | 0 | ||||||
Long-term financing lease liabilities, less current portions and net of deferred financing fees | 0 | ||||||
Total financing lease liability | $ 0 | ||||||
|
Leases Leases - Schedule of Sale Leaseback Transactions (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Sale Leaseback Transaction [Line Items] | |||
Financing lease assets, net | $ 36,666 | $ 38,263 | $ 38,263 |
Solar Photovoltaic Projects | |||
Sale Leaseback Transaction [Line Items] | |||
Financing lease assets, net | 36,666 | 38,263 | |
Deferred loss, short-term, net | 115 | 115 | |
Deferred loss, long-term, net | 1,830 | 1,917 | |
Total deferred loss | 1,945 | 2,032 | |
Financing lease liabilities, short-term | 5,008 | 4,956 | |
Financing lease liabilities, long-term | 26,098 | 28,407 | |
Total financing lease liabilities | 31,106 | 33,363 | |
Deferred gain, short-term, net | 345 | 345 | |
Deferred gain, long-term, net | 5,549 | 5,808 | |
Total deferred gain | $ 5,894 | $ 6,153 |
Fair Value Measurement - Changes in Contingent Liabilities (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration liabilities balance at December 31, 2018 | $ 962 |
Changes in the fair value of contingent consideration obligation | 66 |
Contingent consideration liabilities balance at September 30, 2019 | $ 1,028 |
Derivative Instruments and Hedging Activities - Effects on Statements of Income (Loss) and Consolidated Statements of Comprehensive Loss (Details) - Other expenses, net - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Designated | Interest rate swap instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Recognized in Net Income | $ 44 | $ (41) | $ (6) | $ (166) |
Not Designated | Interest rate swap instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Recognized in Net Income | (3) | (271) | 66 | (344) |
Not Designated | Commodity swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Recognized in Net Income | (31) | (33) | (203) | 12 |
Not Designated | Interest make-whole provisions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Recognized in Net Income | $ (150) | $ 16 | $ (935) | $ 16 |
Investment Funds and Other Variable Interest Entities - Schedule of Variable Interest Entity Financial Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Variable interest entity, current assets | $ 6,293 | $ 2,473 |
Variable interest entity, assets | 136,213 | 126,727 |
Variable interest entity, current liabilities | 6,458 | 6,092 |
Variable interest entity, liabilities | 39,548 | 34,684 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current assets | 2,777 | 1,255 |
Restricted cash | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current assets | 156 | 156 |
Accounts receivable, net | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current assets | 695 | 374 |
Costs and estimated earnings in excess of billings | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current assets | 2,531 | 498 |
Prepaid expenses and other current assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current assets | 134 | 190 |
Property and equipment, net | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 285 | 0 |
Energy assets, net | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 121,918 | 122,641 |
Operating lease assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 6,048 | 0 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 1,669 | 1,613 |
Current portions of long-term debt and financing lease liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current liabilities | 2,270 | 1,712 |
Accounts payable | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current liabilities | 149 | 234 |
Accrued expenses and other current liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current liabilities | 3,948 | 4,146 |
Current portions of operating lease liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, current liabilities | 91 | 0 |
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 25,493 | 26,461 |
Deferred income taxes, net | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 460 | 0 |
Long-term portions of operating lease liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 6,264 | 0 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | $ 873 | $ 2,131 |
Goodwill and Intangible Assets - Additional Information (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 31, 2019
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
business
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of businesses acquired | business | 1 | |||||
Measurement period adjustment | $ 719 | |||||
Gross Carrying Amount | $ 26,472 | 26,472 | $ 26,164 | |||
Accumulated Amortization | 24,662 | 24,662 | 24,160 | |||
Intangible assets, net | 1,810 | 1,810 | 2,004 | |||
Amortization of intangible assets | 681 | $ 771 | ||||
Customer contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 7,778 | 7,778 | 7,818 | |||
Accumulated Amortization | 7,695 | 7,695 | 7,668 | |||
Amortization of intangible assets | 22 | $ 0 | 67 | 0 | ||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 12,438 | 12,438 | 12,082 | |||
Accumulated Amortization | 10,740 | 10,740 | 10,302 | |||
Non-compete agreements | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 2,991 | 2,991 | 3,013 | |||
Accumulated Amortization | 2,991 | 2,991 | 3,013 | |||
Technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 2,722 | 2,722 | 2,710 | |||
Accumulated Amortization | 2,707 | 2,707 | 2,651 | |||
Trade names | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 543 | 543 | 541 | |||
Accumulated Amortization | 529 | 529 | $ 526 | |||
Other intangible assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ 202 | $ 269 | $ 614 | $ 771 | ||
Undisclosed Name of Acquiree 1 | Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 500 | |||||
Remaining amortization period of asset acquired | 8 years | |||||
Minimum | Customer contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired intangible assets useful life | 1 year | |||||
Minimum | Other intangible assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
All other acquired intangible assets useful life | 4 years | |||||
Maximum | Customer contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired intangible assets useful life | 5 years | |||||
Maximum | Other intangible assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
All other acquired intangible assets useful life | 15 years | |||||
U.S. Regions | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill acquired during the year | $ 315 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements of Ameresco, Inc. (including its subsidiaries, the “Company”) are unaudited, pursuant to certain rules and regulations of the Securities and Exchange Commission, and include, in the opinion of the Company, normal recurring adjustments necessary for a fair presentation in conformity with accounting principles generally accepted in the United States (“GAAP”) of the results for the periods indicated. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of results which may be expected for the full year. The December 31, 2018 consolidated balance sheet data was derived from audited financial statements, but certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed consolidated financial statements, and notes thereto, should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018, and notes thereto, included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 8, 2019. |
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Contract with customer, liability, noncurrent | $ 5,534,000 | $ 5,534,000 | $ 6,343,000 | ||
Contract with customer, asset, reclassified to receivable | 351,180,000 | $ 398,917,000 | |||
Contract with customer, asset, revenue recognized | 321,344,000 | 344,768,000 | |||
Contract with customer, liability, revenue recognized | 58,594,000 | 116,892,000 | |||
Contract with customer, liability, billings | 53,652,000 | 119,961,000 | |||
Revenue, remaining performance obligation | $ 1,696,200,000 | $ 1,696,200,000 | |||
Revenue, remaining performance obligation, percentage | 29.00% | 29.00% | |||
Capitalized project development costs, noncurrent | $ 1,673,000 | $ 1,673,000 | $ 639,000 | ||
Capitalized contract cost, project development costs | $ 2,048,000 | $ 7,561,000 | 13,081,000 | 13,571,000 | |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | |||
Minimum | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Contract receivable retainage percentage | 5.00% | 5.00% | |||
Maximum | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Contract receivable retainage percentage | 10.00% | 10.00% |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Nov. 01, 2019 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | Ameresco, Inc. | |
Entity Central Index Key | 0001488139 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 29,033,114 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,000,000 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,331 | $ 10,701 | $ 19,709 | $ 26,907 |
Other comprehensive (loss) income: | ||||
Unrealized (loss) gain from interest rate hedges, net of tax (provision) benefit | (1,135) | 125 | (3,949) | 1,686 |
Foreign currency translation adjustments | (356) | (163) | 289 | (161) |
Total other comprehensive (loss) income | (1,491) | (38) | (3,660) | 1,525 |
Comprehensive income | 6,840 | 10,663 | 16,049 | 28,432 |
Comprehensive loss attributable to redeemable non-controlling interests | 539 | 0 | 2,524 | (516) |
Comprehensive income attributable to common shareholders | $ 7,379 | $ 10,663 | $ 18,573 | $ 27,916 |
Business Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments are U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“DG”). The Company’s U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services, which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services, which include the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Non-Solar DG segment sells electricity, processed renewable gas fuel, heat or cooling, produced from renewable sources of energy, other than solar, and generated by small-scale plants that the Company owns and O&M services for customer owned small-scale plants. The “All Other” category offers enterprise energy management services, consulting services and the sale of solar-PV energy products and systems which we refer to as integrated-PV. These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments. Certain reportable segments are an aggregation of operating segments. The reports of the Company’s chief operating decision maker do not include assets at the operating segment level. The accounting policies are the same as those described in the summary of significant accounting policies in Note 2 included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 8, 2019. An analysis of the Company’s business segment information and reconciliation to the condensed consolidated financial statements is as follows:
|
Business Acquisitions and Related Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation by Acquisitions | A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective period is as follows:
|
Investment Funds And Other Variable Interest Entities - Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Jan. 31, 2019
USD ($)
employee
|
Sep. 30, 2019
USD ($)
fund
|
Sep. 30, 2019
USD ($)
fund
|
Dec. 31, 2018
USD ($)
|
|
Variable Interest Entity [Line Items] | ||||
Number of investment funds | fund | 4 | 4 | ||
Joint venture, number of employees | employee | 0 | |||
Contributions to joint venture | $ 1,506 | |||
Payments to acquire interest in joint venture | 50.00% | |||
Net asset position of equity method joint ventures | $ 1,290 | $ 1,290 | $ 0 | |
Expense recognized from equity method joint ventures | $ (73) | $ 147 | ||
Other assets | ||||
Variable Interest Entity [Line Items] | ||||
Equity method investment | $ 1,361 | |||
Operating Income | ||||
Variable Interest Entity [Line Items] | ||||
VIE, impact of deconsolidation | $ 2,160 |
Fair Value Measurement - Additional Information (Details) |
Sep. 30, 2019 |
---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Probability of base case scenario, percentage | 50.00% |
Undisclosed Name of Acquiree 1 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Probability of low case scenario, percentage | 50.00% |
Undisclosed Name of Acquiree 1 | Interest make-whole provisions | Measurement Input, Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.18 |
Undisclosed Name of Acquiree 2 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.18 |
Probability of low case scenario, percentage | 20.00% |
Probability of base case scenario, percentage | 75.00% |
Probability of high case scenario, percentage | 5.00% |
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands |
Sep. 30, 2019
contract
|
Dec. 31, 2018
contract
|
Jul. 01, 2018
USD ($)
|
Jan. 01, 2018
USD ($)
|
---|---|---|---|---|
Derivative [Line Items] | ||||
Cumulative impact from the adoption of ASU | $ (54) | |||
Accounting Standards Update 2017-12 | ||||
Derivative [Line Items] | ||||
Cumulative impact from the adoption of ASU | $ (54) | |||
Retained Earnings | ||||
Derivative [Line Items] | ||||
Cumulative impact from the adoption of ASU | 0 | |||
Retained Earnings | Accounting Standards Update 2017-12 | ||||
Derivative [Line Items] | ||||
Cumulative impact from the adoption of ASU | 0 | $ 432 | ||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2017-12 | ||||
Derivative [Line Items] | ||||
Cumulative impact from the adoption of ASU | $ 486 | |||
Not Designated | ||||
Derivative [Line Items] | ||||
Number of instruments held | contract | 3 | 4 |
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Statement [Abstract] | ||||
Revenues | $ 212,026 | $ 205,375 | $ 560,321 | $ 569,767 |
Cost of revenues | 167,333 | 159,213 | 439,857 | 445,356 |
Gross profit | 44,693 | 46,162 | 120,464 | 124,411 |
Selling, general and administrative expenses | 31,231 | 28,866 | 87,396 | 84,871 |
Operating income | 13,462 | 17,296 | 33,068 | 39,540 |
Other expenses, net | 4,192 | 3,244 | 11,359 | 10,754 |
Income before provision for income taxes | 9,270 | 14,052 | 21,709 | 28,786 |
Income tax provision | 939 | 3,351 | 2,000 | 1,879 |
Net income | 8,331 | 10,701 | 19,709 | 26,907 |
Net loss (income) attributable to redeemable non-controlling interests | 539 | 0 | 2,524 | (516) |
Net income attributable to common shareholders | $ 8,870 | $ 10,701 | $ 22,233 | $ 26,391 |
Net income per share attributable to common shareholders: | ||||
Basic (in usd per share) | $ 0.19 | $ 0.23 | $ 0.48 | $ 0.58 |
Diluted (in usd per share) | $ 0.19 | $ 0.23 | $ 0.47 | $ 0.57 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 46,555 | 45,854 | 46,413 | 45,599 |
Diluted (in shares) | 47,693 | 46,944 | 47,675 | 46,509 |
Energy Assets - Energy Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|
Property, Plant and Equipment [Line Items] | ||||
Energy assets, net | [1] | $ 507,759 | $ 459,952 | |
Energy Assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Energy assets | 693,916 | 619,708 | ||
Less - accumulated depreciation and amortization | (186,157) | (159,756) | ||
Energy assets, net | $ 507,759 | $ 459,952 | ||
|
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
Sep. 30, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
|||||
Cash flows from operating activities: | ||||||||||||
Net income | $ 8,331 | $ 10,701 | $ 19,709 | $ 26,907 | ||||||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||||||||
Depreciation of energy assets | 8,843 | 6,753 | 26,338 | 19,699 | ||||||||
Depreciation of property and equipment | 2,115 | 1,573 | ||||||||||
Amortization of debt issuance costs | 1,734 | 1,587 | ||||||||||
Amortization of intangible assets | 681 | 771 | ||||||||||
Accretion of ARO and contingent consideration | 98 | 0 | ||||||||||
Provision for bad debts | (134) | 483 | ||||||||||
Loss on disposal / sale of assets | 0 | 300 | ||||||||||
Gain on deconsolidation of VIE | (2,160) | 0 | ||||||||||
Net gain from derivatives | (1,072) | (420) | ||||||||||
Stock-based compensation expense | 1,195 | 1,137 | ||||||||||
Deferred income taxes | 152 | 3,914 | ||||||||||
Unrealized foreign exchange loss | 149 | 486 | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (4,468) | 2,073 | ||||||||||
Accounts receivable retainage | (3,079) | 3,008 | ||||||||||
Federal ESPC receivable | (110,374) | (111,982) | ||||||||||
Inventory, net | (2,137) | 10 | ||||||||||
Costs and estimated earnings in excess of billings | (23,130) | 28,704 | ||||||||||
Prepaid expenses and other current assets | (11,084) | 5,241 | ||||||||||
Project development costs | (5,641) | (6,984) | ||||||||||
Other assets | (698) | (1,371) | ||||||||||
Accounts payable, accrued expenses and other current liabilities | (8,931) | (16,532) | ||||||||||
Billings in excess of cost and estimated earnings | (952) | 11,166 | ||||||||||
Other liabilities | (1,602) | 227 | ||||||||||
Income taxes payable | 2,566 | (2,038) | ||||||||||
Cash flows from operating activities | (120,725) | (32,041) | ||||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (6,188) | (2,961) | ||||||||||
Purchases of energy assets | (72,140) | (103,154) | ||||||||||
Acquisitions, net of cash received | (1,279) | (3,592) | ||||||||||
Contributions to equity investment | (323) | 0 | ||||||||||
Cash flows from investing activities | (79,930) | (109,707) | ||||||||||
Cash flows from financing activities: | ||||||||||||
Payments of financing fees | (541) | (3,667) | ||||||||||
Proceeds from exercises of options and ESPP | 5,265 | 4,327 | ||||||||||
Repurchase of common stock | (139) | (1,772) | ||||||||||
Proceeds (payments) from senior secured credit facility, net | 41,343 | (900) | ||||||||||
Proceeds from long-term debt financings | 7,614 | 78,914 | ||||||||||
Proceeds from Federal ESPC projects | 115,556 | 113,570 | ||||||||||
Proceeds for energy assets from Federal ESPC | 1,639 | 2,269 | ||||||||||
Proceeds from sale-leaseback financings | 0 | 5,145 | ||||||||||
Contributions from redeemable non-controlling interests, net of distributions | 20,173 | 3,731 | ||||||||||
Payments on long-term debt | (18,033) | (22,825) | ||||||||||
Cash flows from financing activities | 172,877 | 178,792 | ||||||||||
Effect of exchange rate changes on cash | 249 | (124) | ||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (27,529) | 36,920 | ||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 97,913 | 60,105 | $ 60,105 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | 70,384 | 97,025 | 70,384 | 97,025 | 97,913 | |||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | 12,410 | 9,618 | ||||||||||
Cash paid for income taxes | 2,983 | 2,018 | ||||||||||
Non-cash Federal ESPC settlement | 214,444 | 82,536 | ||||||||||
Accrued purchases of energy assets | 17,224 | 7,698 | ||||||||||
Conversion of revolver to term loan | 25,000 | 25,000 | ||||||||||
Reconciliation of cash, cash equivalents and restricted cash | ||||||||||||
Cash and cash equivalents | $ 34,104 | [1] | $ 61,397 | [1] | $ 64,539 | |||||||
Short-term restricted cash | 13,498 | [1] | 16,880 | [1] | 13,461 | |||||||
Long-term restricted cash included in other assets | 22,782 | 19,637 | 19,025 | |||||||||
Total cash and cash equivalents, and restricted cash | $ 70,384 | $ 97,025 | $ 97,913 | $ 60,105 | $ 60,105 | $ 70,384 | $ 97,913 | $ 97,025 | ||||
|
Business Acquisitions and Related Transactions - Additional Information (Details) $ in Thousands |
1 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2019
USD ($)
|
Sep. 30, 2019 |
Sep. 30, 2019
USD ($)
|
Sep. 30, 2019
Agreement
|
Sep. 30, 2019
project
|
|
Business Acquisition [Line Items] | |||||
Measurement period adjustment | $ 719 | ||||
Measurement period adjustment, hold back contingency | 398 | ||||
Number of projects acquired | 4 | 4 | |||
U.S. Federal | |||||
Business Acquisition [Line Items] | |||||
Measurement period adjustment | 628 | ||||
Massachusetts Based Solar Operations And Maintenance Firm | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration | $ 1,279 | ||||
Measurement period adjustment | $ 91 | ||||
Minimum | Solar Photovoltaic Projects | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 1 year | ||||
Maximum | Solar Photovoltaic Projects | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 15 years |
Earnings Per Share and Other Equity Related Information |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share And Other Equity Related Information | EARNINGS PER SHARE AND OTHER EQUITY RELATED INFORMATION Earnings Per Share Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares, including vested restricted shares. When the effects are not anti-dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares; the dilutive effect of convertible preferred stock, under the “if converted” method; and the treasury stock method with regard to warrants and stock options; all as determined under the treasury stock method.
For the three months ended September 30, 2019 and 2018, the total number of shares of common stock related to stock options excluded from the calculation of dilutive shares, as the effect would be anti-dilutive, were 1,152 and 758, respectively. For the nine months ended September 30, 2019 and 2018, the total number of shares of common stock related to stock options excluded from the calculation of dilutive shares, as the effect would be anti-dilutive, were 642 and 1,273, respectively. Stock-Based Compensation Expense For the three months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense, including expense related to the Employee Stock Purchase Plan (“ESPP”), of $413 and $390, respectively, in connection with the stock-based payment awards. For the nine months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense, including expense related to the ESPP, of $1,195 and $1,137, respectively, in connection with the stock-based payment awards. The compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. As of September 30, 2019, there was $4,641 of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted-average period of 3.0 years. No awards to individuals who were not either an employee or director of the Company occurred during the nine months ended September 30, 2019 or during the year ended December 31, 2018. Stock Option Grants During the three months ended September 30, 2019, the Company granted 1,000 common stock options to certain employees and directors under its 2010 Stock Incentive Plan, which have a contractual life of ten years and vest based upon the achievement of specific performance goals over a three years period. Share Repurchase Program In April 2016, the Company’s Board of Directors authorized the repurchase of up to $10,000 of the Company’s Class A common stock from time to time on the open market in privately negotiated transactions. The Company’s Board of Directors authorized an increase in the Company’s share repurchase authorization to $15,000 of the Company's Class A common stock in February 2017 and to $17,553 of the Company's Class A common stock in August 2019, in each case, from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes. The repurchase program has and will be funded using the Company's working capital and borrowings under its revolving line of credit. The Company accounts for share repurchases using the cost method. Under this method, the cost of the share repurchase is recorded entirely in treasury stock, a contra equity account. During the three and nine months ended September 30, 2019, the Company repurchased 10 shares of common stock in the amount of $139, net of immaterial fees. During the three months ended September 30, 2018, the Company did not repurchase any shares of common stock. During the nine months ended September 30, 2018, the Company purchased 212 shares of common stock in the amount of $1,772, net of fees of $9. |
Revenue from Contracts with Customers (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disaggregation of Revenue | The following table provides information about disaggregated revenue by line of business, reportable segments, and geographical region for the three and nine months ended September 30, 2019 and 2018.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:
|
Debt (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | As of September 30, 2019, the Company’s debt comprised the following:
(1) Financing leases do not include approximately $23,510 in future interest payments (2) These agreements have acceleration causes that, in the event of default, as defined, the payee has the option to accelerate payment terms and make due the remaining principal and the required interest balance according to the agreement |
Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Derivative Instruments |
At September 30, 2019 and December 31, 2018, the following table presents information about the fair value amounts of the Company’s derivative instruments are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Effect on Consolidated Statement of Income (Loss) | The following tables present information about the effects of the Company’s derivative instruments on the condensed consolidated statements of income and condensed consolidated statements of comprehensive income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments Effect on Comprehensive Income (Loss) |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Active Derivative Instruments | The following tables present a listing of all the Company’s active derivative instruments as of September 30, 2019:
|
Fair Value Measurement |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | FAIR VALUE MEASUREMENT The Company recognizes its financial assets and liabilities at fair value on a recurring basis (at least annually). Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Three levels of inputs that may be used to measure fair value are as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The following table presents the input level used to determine the fair values of the Company’s financial instruments measured at fair value on a recurring basis:
The fair value of the Company’s interest rate swaps was determined using cash flow analysis on the expected cash flow of the contract in combination with observable market-based inputs, including interest rate curves and implied volatilities. As part of this valuation, the Company considered the credit ratings of the counterparties to the interest rate swaps to determine if a credit risk adjustment was required. The fair value of the Company’s commodity swaps was determined using a cash flow analysis on the expected cash flow of the contract in combination with observable forward price inputs obtained from a third-party pricing source. As part of this valuation, the Company considered the credit ratings of the counterparties to the commodity swaps to determine if a credit risk adjustment was required. The fair value of the Company’s make-whole provisions were determined by comparing them against the rates of similar debt instruments under similar terms without a make-whole provision obtained from various highly rated third-party pricing sources. The fair value of the Company’s contingent consideration liabilities were determined by evaluating the acquired asset’s future financial forecasts and evaluating which, if any, of the cumulative revenue targets, financial metrics and/or milestones are likely to be met. The Company has classified contingent consideration related to certain acquisitions within level 3 of the fair value hierarchy because the fair value is derived using significant unobservable inputs, which include discount rates and probability-weighted cash flows. The Company determined the fair value of its contingent consideration obligations based on a probability-weighted income approach derived from financial performance estimates and probability assessments of the attainment of certain targets. The Company establishes discount rates to be utilized in its valuation models based on the cost to borrow that would be required by a market participant for similar instruments. In determining the probability of attaining certain technical, financial and operation targets, the Company utilizes data regarding similar milestone events from the Company’s experience, while considering the inherent difficulties and uncertainties in developing a product. On a quarterly basis, the Company reassesses the probability factors associated with the financial, operational and technical targets for its contingent consideration obligations. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. The key assumptions as of September 30, 2019, related to the contingent consideration from the August 2018 acquisition of certain assets, used in the model include a discount rate of 18% for purposes of discounting the low and base case scenarios associated with achievement of the financial based earn-out. The probabilities assigned to these scenarios were 50% for both the low and base case scenarios. An increase or decrease in the probability of achievement of any scenario could result in a significant increase or decrease to the estimated fair value of the contingent consideration liability. The key assumptions as of September 30, 2019, related to the contingent consideration from the November 2018 acquisition of certain lease options, used in the model include a discount rate of 18% for purposes of discounting the low, base and high case scenarios associated with achievement of the financial based earn-out. The probabilities assigned to these scenarios were 20% for the low case, 75% for the base case and 5% for the high case. An increase or decrease in the probability of achievement of any scenario could result in a significant increase or decrease to the estimated fair value of the contingent consideration liability. The following table sets forth a summary of changes in fair value of contingent liabilities classified as Level 3 for the nine months ended September 30, 2019:
The fair value of financial instruments is determined by reference to observable market data and other valuation techniques, as appropriate. The only category of financial instruments where the difference between fair value and recorded book value is notable is long-term debt. At September 30, 2019 and December 31, 2018 the fair value of the Company’s long-term debt was estimated using discounted cash flows analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements which are considered to be level two inputs. There have been no transfers in or out of level two or level three financial instruments for the nine months ended September 30, 2019 and the year ended December 31, 2018. Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt, excluding financing leases, are as follows:
The Company is also required periodically to measure certain other assets at fair value on a nonrecurring basis, including long-lived assets, goodwill and other intangible assets. There were no assets recorded at fair value on a non-recurring basis at September 30, 2019 or December 31, 2018. |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Company are set forth in Note 2 to the consolidated financial statements contained in the Company’s 2018 annual report on Form 10-K. The Company includes herein certain updates to those policies. Restricted Cash Restricted cash consists of cash and cash equivalents held in an escrow account in association with construction draws for energy savings performance contracts (“ESPC”), construction of energy assets, operations and maintenance (“O&M”) reserve accounts and cash collateralized letters of credit as well as cash required under term loans to be maintained in debt service reserve accounts until all obligations have been indefeasibly paid in full. These accounts are primarily invested in highly liquid money market funds. The carrying amount of the cash and cash equivalents in these accounts approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 10. Restricted cash also includes funds held for clients, which represent assets that, based upon the Company’s intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds to third parties, primarily utility service providers, relating to the Company’s enterprise energy management services. As of September 30, 2019 and December 31, 2018, the Company classified the non-current portion of restricted cash of $22,782 and $19,637, respectively, in other assets on the accompanying condensed consolidated balance sheets. Leases As of January 1, 2019, the Company adopted Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) and, along with the standard, elected to take the practical expedient that the Company will not reassess lease classifications at adoption. Accordingly, the Company’s sales-leaseback arrangements entered into as of December 31, 2018 will remain under the previous guidance. See Note 8 for additional information on these sale-leasebacks. All significant lease arrangements are recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) as the Company recognizes lease expense for these leases as incurred over the lease term. ROU assets represent the Company’s right to use an underlying asset during the reasonably certain lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, which is updated annually or when a significant event occurs that would indicate a significant change in rates, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single component. See Note 8 for additional discussion on the Company’s leases. Variable Interest Entities The Company generally aggregates the disclosures of its variable interest entities (“VIEs”) based on certain qualitative and quantitative factors including the purpose and design of the underlying VIEs, the nature of the assets in the VIE, and the type of involvement the Company has with the VIE including its role and type of interest held in the VIE. As of September 30, 2019, all of the fully consolidated VIEs that make up the Company’s investment funds are similar in purpose, design, and the Company’s involvement and, as such, are aggregated in one disclosure. See Note 12 for additional disclosures. Equity Method Investment The Company has entered into a joint venture and has determined it is not the primary beneficiary using the methodology previously described for variable interest entities. The Company does not consolidate the operations of this joint venture and treats the joint venture as an equity method investment. See Note 12 for additional information on the Company’s equity method investment. Recent Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, the Company is electing to only recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the condensed consolidated statements of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. On January 1, 2019, the Company adopted ASU No. 2016-02 using the modified retrospective approach of applying the new standard at the adoption date. See Note 8 for the impact of the adoption and the new disclosures required by this standard. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements, which provides clarification and improvements to the previous issued guidance. The standard is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2019-01 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. Intangibles-Goodwill and Other In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use-Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation, setup, and upfront costs and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective interim and annual periods beginning after December 15, 2019, with early adoption permitted, and can be applied either retrospectively or prospectively. The Company adopted this guidance as of January 1, 2019 and the adoption did not have an impact on the Company’s condensed consolidated financial statements. Derivatives and Hedging In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which, among other things, clarifies some areas around partial-term fair value hedges interest rate risk, the amortization of fair value hedge basis adjustments and their disclosure, and some clarification of some matters related to transitioning to ASU No. 2017-12, which was adopted by the Company during the year ended December 31, 2018. For those that have already adopted ASU No. 2017-12, the new standard is effective the first annual period beginning after the issuance date of ASU No. 2019-04, or as of January 1, 2020 for the Company, with early adoption permitted. The Company is currently evaluating the impact of ASU No. 2019-04 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2018-13 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to allow entities to reclassify the income tax effects of tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. The Company adopted the guidance as of January 1, 2019. Upon adoption, the Company recognized an increase to retained earnings and a corresponding increase to accumulated other comprehensive loss of $217. Consolidations In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities, which aligns the evaluation of whether a decision maker's fee is a variable interest with the guidance in the primary beneficiary test by requiring the decision maker to consider an indirect interest in a VIE held by related party under common control on a proportionate basis. The new standard is effective interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of ASU 2018-17 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. |
Energy Assets Energy Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy Assets | ENERGY ASSETS Energy assets consist of the following:
Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. Financing lease assets consist of the following:
Depreciation and amortization expense on the above energy assets, net of deferred grant amortization, for the three months ended September 30, 2019 and 2018 was $8,843 and $6,753, respectively, and is included in cost of revenues in the accompanying condensed consolidated statements of income. Included in these depreciation and amortization expense totals are depreciation and amortization expense on financing lease assets of $533 and $499 for the three months ended September 30, 2019 and 2018, respectively. Depreciation and amortization expense on the above energy assets, net of deferred grant amortization, for the nine months ended September 30, 2019 and 2018 was $26,338 and $19,699, respectively, and is included in cost of revenues in the accompanying condensed consolidated statements of income. Included in these depreciation and amortization expense totals are depreciation and amortization expense on financing lease assets of $1,597 and $1,538 for the nine months ended September 30, 2019 and 2018, respectively. The Company capitalizes interest costs relating to construction financing during the period of construction. Capitalized interest is included in energy assets, net in the Company’s condensed consolidated balance sheets. Capitalized interest is amortized to cost of revenues in the Company’s condensed consolidated statements of income on a straight line basis over the useful life of the associated energy asset. There was $632 and $638 of interest capitalized for the three months ended September 30, 2019 and 2018, respectively. There was $2,210 and $2,376 of interest capitalized for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019 and December 31, 2018, there are 3 ESPC asset projects which are included within energy assets, net on the Company’s condensed consolidated balance sheets. The Company controls and operates the assets as well as obtains financing during the construction period of the assets. As the Company has an obligation to the customer for performance of the asset, the Company records a liability associated with these energy assets, although, the customer is responsible for payments to the lender based on the energy asset’s production. As of September 30, 2019 and December 31, 2018, the liabilities recognized in association with these assets were $10,233 and $8,224, respectively, of which $724 and $354, respectively, has been classified as the current portion and is included in accrued expenses and other current liabilities and the remainder is included in other liabilities in the accompanying condensed consolidated balance sheets. During the nine months ended September 30, 2019, in order to expand its portfolio of energy assets, the Company acquired several energy projects, which did not constitute businesses under ASU 2017-01, Business Combinations. The Company acquired and closed on 4 solar projects from a developer for a total purchase price of $2,529. The purchase price included deferred consideration of $668 that will be paid upon final completion of the respective projects throughout 2019. As of September 30, 2019, the Company has paid $1,861 to the developers of the projects. The Company also has a definitive agreement to purchase an additional 3 solar projects from a developer for a total purchase price of $4,556, of which, the Company has paid $456 to the developers of the projects. As of September 30, 2019, the Company has remaining deferred purchase price consideration on previously closed projects of $4,122. As of September 30, 2019, the Company had $863 in ARO assets recorded in project assets, net of accumulated depreciation, and $930 in ARO liabilities recorded in accrued expenses and other current liabilities and other liabilities. During the three and nine months ended September 30, 2019, the Company recorded $12 and $34, respectively, of depreciation expense related to the ARO asset. During the three and nine months ended September 30, 2019, the Company recorded $10 and $32, respectively, in accretion expense to the ARO liability, which is reflected in the accretion of ARO and contingent consideration on the condensed consolidated statements of cash flows. The Company’s current ARO liabilities relate to the removal of equipment and pipelines at certain renewable gas projects and obligations related to the decommissioning of certain solar facilities. |
Debt - Additional Information (Details) |
3 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2019
USD ($)
project
|
Jun. 30, 2019
USD ($)
|
Jun. 28, 2019 |
Jun. 27, 2019 |
May 31, 2019
USD ($)
|
|
Debt Instrument [Line Items] | |||||
Total Funded Debt to EBITDA covenant ratio, maximum | 3 | ||||
Total Funded Debt to EBITDA covenant ratio, minimum | 3.25 | ||||
Number of projects acquired under lease agreement | project | 1 | ||||
Sale leaseback terms | 20 years | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit, amount outstanding | $ 185,000,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit, maximum borrowing capacity | $ 115,000,000 | $ 85,000,000 | |||
Funds available for borrowing | $ 46,480,000 | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 65,000,000 | $ 40,000,000 | |||
Long Term Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Long term financing facility, interest rate (percentage) | 0.28% | ||||
Long-term debt | $ 4,872,000 |
Earnings Per Share and Other Equity Related Information - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Earnings Per Share [Abstract] | ||||
Net income attributable to common shareholders | $ 8,870 | $ 10,701 | $ 22,233 | $ 26,391 |
Basic weighted-average shares outstanding (in shares) | 46,555 | 45,854 | 46,413 | 45,599 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 1,138 | 1,090 | 1,262 | 910 |
Diluted weighted-average shares outstanding (in shares) | 47,693 | 46,944 | 47,675 | 46,509 |
Leases - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Jan. 01, 2019 |
Dec. 31, 2018 |
||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Operating lease assets | $ 32,540,000 | [1] | $ 32,540,000 | [1] | $ 31,639,000 | $ 0 | [1] | ||||
Current operating lease liabilities | 5,935,000 | [1] | 5,935,000 | [1] | 5,084,000 | 0 | |||||
Long-term portions of operating lease liabilities | 28,799,000 | [1] | 28,799,000 | [1] | 28,480,000 | $ 0 | |||||
Operating leases revenue | 2,243,000 | 6,737,000 | |||||||||
Net amortization expense | $ 57,000 | $ 48,000 | $ 172,000 | $ 153,000 | |||||||
Maximum combined funding amount | $ 100,000,000 | $ 100,000,000 | |||||||||
Sale leaseback terms | 20 years | 20 years | |||||||||
Available funding under lending commitment | $ 90,200,000 | $ 90,200,000 | |||||||||
842 Adjustment | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Operating lease assets | 31,639,000 | ||||||||||
Current operating lease liabilities | 5,084,000 | ||||||||||
Long-term portions of operating lease liabilities | $ 28,480,000 | ||||||||||
Minimum | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Operating lease renewal term | 6 months | 6 months | |||||||||
Maximum | |||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||
Operating lease renewal term | 7 years | 7 years | |||||||||
|
Leases - Minimum Future Lease Obligations (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Operating Leases | |||
2019 | $ 1,851 | ||
2020 | 7,523 | ||
2021 | 6,156 | ||
2022 | 5,600 | ||
2023 | 4,348 | ||
Thereafter | 22,977 | ||
Total minimum lease payments | 48,455 | ||
Less: interest | 13,721 | ||
Present value of lease liabilities | 34,734 | $ 33,564 | |
Financing Leases | |||
2019 | 4,302 | ||
2020 | 7,881 | ||
2021 | 6,775 | ||
2022 | 5,173 | ||
2023 | 3,686 | ||
Thereafter | 26,799 | ||
Total minimum lease payments | 54,616 | ||
Less: interest | 23,510 | ||
Present value of lease liabilities | $ 31,106 | $ 33,363 | $ 33,363 |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
||||
---|---|---|---|---|---|---|
Current assets: | ||||||
Cash and cash equivalents | [1] | $ 34,104 | $ 61,397 | |||
Restricted cash | [1] | 13,498 | 16,880 | |||
Accounts receivable, net of allowance | [1] | 91,755 | 85,985 | |||
Accounts receivable retainage, net | 16,652 | 13,516 | ||||
Costs and estimated earnings in excess of billings | [1] | 124,652 | 86,842 | |||
Inventory, net | 9,902 | 7,765 | ||||
Prepaid expenses and other current assets | [1] | 22,585 | 11,571 | |||
Income tax receivable | 1,629 | 5,296 | ||||
Project development costs | 26,305 | 21,717 | ||||
Total current assets | [1] | 341,082 | 310,969 | |||
Federal ESPC receivable | 182,012 | 293,998 | ||||
Property and equipment, net | [1] | 10,469 | 6,985 | |||
Energy assets, net | [1] | 507,759 | 459,952 | |||
Goodwill | 57,899 | 58,332 | ||||
Intangible assets, net | 1,810 | 2,004 | ||||
Operating lease assets | [1] | 32,540 | 0 | |||
Other assets | [1] | 36,786 | 29,394 | |||
Total assets | [1] | 1,170,357 | 1,161,634 | |||
Current liabilities: | ||||||
Current portions of long-term debt and financing lease liabilities | [1] | 54,958 | 26,890 | |||
Accounts payable | [1] | 133,833 | 134,330 | |||
Accrued expenses and other current liabilities | [1] | 28,700 | 35,947 | |||
Current operating lease liabilities | 5,935 | [1] | 0 | |||
Billings in excess of cost and estimated earnings | 23,234 | 24,363 | ||||
Income taxes payable | 0 | 1,100 | ||||
Total current liabilities | [1] | 246,660 | 222,630 | |||
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | [1] | 223,766 | 219,162 | |||
Federal ESPC liabilities | 196,584 | 288,047 | ||||
Deferred income taxes, net | [1] | 3,242 | 4,352 | |||
Deferred grant income | 6,223 | 6,637 | ||||
Long-term portions of operating lease liabilities, net of current | 28,799 | [1] | 0 | |||
Other liabilities | [1] | 30,989 | 29,212 | |||
Commitments and contingencies (Note 9) | ||||||
Redeemable non-controlling interests | 32,108 | 14,719 | ||||
Stockholders’ equity: | ||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2019 and December 31, 2018 | 0 | 0 | ||||
Additional paid-in capital | 131,111 | 124,651 | ||||
Retained earnings | 292,256 | 269,806 | ||||
Accumulated other comprehensive loss, net | (9,609) | (5,949) | ||||
Treasury stock, at cost, 2,101,040 shares at September 30, 2019 and 2,091,040 shares at December 31, 2018 | (11,777) | (11,638) | ||||
Total stockholders’ equity | 401,986 | 376,875 | ||||
Total liabilities, redeemable non-controlling interests and stockholders’ equity | 1,170,357 | 1,161,634 | ||||
Common Class A | ||||||
Stockholders’ equity: | ||||||
Common Stock | 3 | 3 | ||||
Common Class B | ||||||
Stockholders’ equity: | ||||||
Common Stock | 2 | 2 | ||||
Variable Interest Entity, Primary Beneficiary | ||||||
Current assets: | ||||||
Costs and estimated earnings in excess of billings | 758 | 498 | ||||
Prepaid expenses and other current assets | 190 | 190 | ||||
Energy assets, net | 123,092 | 122,641 | ||||
Operating lease assets | 6,124 | 0 | ||||
Other assets | 1,624 | 1,613 | ||||
Total assets | 136,213 | 126,727 | ||||
Current liabilities: | ||||||
Accounts payable | 169 | 234 | ||||
Accrued expenses and other current liabilities | 3,672 | 4,146 | ||||
Current operating lease liabilities | 84 | 0 | ||||
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | 26,104 | 26,461 | ||||
Long-term portions of operating lease liabilities, net of current | 6,271 | 0 | ||||
Other liabilities | 1,336 | 2,131 | ||||
Stockholders’ equity: | ||||||
Non-recourse liabilities of consolidated VIE | $ 39,548 | $ 34,684 | ||||
|
Energy Assets - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Aug. 06, 2019
USD ($)
project
|
Sep. 30, 2019
USD ($)
project
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
project
|
Sep. 30, 2019
USD ($)
Agreement
project
|
Sep. 30, 2019
USD ($)
project
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
project
|
Jan. 01, 2018
USD ($)
|
|
Business Acquisition [Line Items] | ||||||||||
Depreciation and amortization expense | $ 8,843 | $ 6,753 | $ 26,338 | $ 19,699 | ||||||
Finance lease right-of-use assets, amortization expense | 533 | 499 | 1,597 | 1,538 | ||||||
Interest costs capitalized | $ 632 | 638 | $ 2,210 | 2,376 | ||||||
Number of ESPC projects included in energy assets that the Company owns and operates | project | 3 | 3 | 3 | 3 | 3 | |||||
Contract with customer, liability | $ 39,533 | 39,533 | $ 30,706 | $ 27,248 | ||||||
Contract with customer, current liability | $ 23,234 | $ 23,234 | $ 23,234 | $ 23,234 | 24,363 | |||||
Number of projects acquired | 4 | 4 | ||||||||
Asset retirement obligation recorded in project assets | 863 | 863 | $ 863 | $ 863 | ||||||
Asset retirement obligation liability recorded in accrued expenses | 930 | 930 | 930 | 930 | ||||||
Depreciation of property and equipment | 2,115 | $ 1,573 | ||||||||
ARO accretion expense | 10 | 32 | ||||||||
ARO Asset | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation of property and equipment | 12 | 34 | ||||||||
Solar Projects 2019 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of consideration | 2,529 | |||||||||
Contingent consideration, liability | 4,122 | 4,122 | 4,122 | 4,122 | ||||||
Amount paid to developers of projects | 1,861 | |||||||||
Number of projects under definitive agreement to acquire | project | 3 | |||||||||
Solar Projects 2019 | Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration, liability | $ 668 | |||||||||
Solar Projects 2019, Additional Projects | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of consideration | $ 4,556 | |||||||||
Amount paid to developers of projects | 456 | |||||||||
Energy Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contract with customer, liability | 10,233 | 10,233 | 10,233 | 10,233 | 8,224 | |||||
Energy Assets | Accrued Expenses And Other Current Liabilities | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contract with customer, current liability | $ 724 | $ 724 | $ 724 | $ 724 | $ 354 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized (loss) gain from interest rate hedges, tax benefit (provision) | $ (410) | $ 181 | $ (1,308) | $ 590 |
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | $ 58,332 | |
Goodwill acquired during the year | 406 | |
Re-measurement adjustment | (719) | |
Currency effects | (120) | |
Balance, September 30, 2019 | 57,899 | |
Accumulated goodwill impairment | (1,016) | $ (1,016) |
U.S. Federal | ||
Goodwill [Roll Forward] | ||
Re-measurement adjustment | (628) | |
Operating Segments | U.S. Regions | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 26,370 | |
Goodwill acquired during the year | 406 | |
Re-measurement adjustment | (91) | |
Currency effects | 0 | |
Balance, September 30, 2019 | 26,685 | |
Accumulated goodwill impairment | 0 | 0 |
Operating Segments | U.S. Federal | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 4,609 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | (628) | |
Currency effects | 0 | |
Balance, September 30, 2019 | 3,981 | |
Accumulated goodwill impairment | 0 | 0 |
Operating Segments | Canada | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 3,217 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | 0 | |
Currency effects | 95 | |
Balance, September 30, 2019 | 3,312 | |
Accumulated goodwill impairment | (1,016) | (1,016) |
Operating Segments | Non-solar DG | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 0 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | 0 | |
Currency effects | 0 | |
Balance, September 30, 2019 | 0 | |
Accumulated goodwill impairment | 0 | 0 |
Operating Segments | Other | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 24,136 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | 0 | |
Currency effects | (215) | |
Balance, September 30, 2019 | 23,921 | |
Accumulated goodwill impairment | $ 0 | $ 0 |
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jan. 01, 2018 |
||||
---|---|---|---|---|---|---|---|---|
Revenue from Contract with Customer [Abstract] | ||||||||
Accounts receivable, net | $ 91,755 | [1] | $ 85,985 | [1] | $ 90,378 | $ 85,121 | ||
Accounts receivable retainage, net | 16,652 | 13,516 | 14,401 | 17,484 | ||||
Contract Assets: | ||||||||
Costs and estimated earnings in excess of billings | $ 124,652 | [1] | 86,842 | [1] | 66,471 | 95,658 | ||
Contract Liabilities: | ||||||||
Billings in excess of cost and estimated earnings | $ 30,706 | $ 39,533 | $ 27,248 | |||||
|
Fair Value Measurement - Fair Value and Carrying Value of Long-term Debt (Details) - USD ($) |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt value (Level 2), Fair Value | $ 249,404,000 | $ 211,823,000 |
Long-term debt value (Level 2), Carrying Value | 247,618,000 | 212,687,000 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities - Effects of Derivative Instruments in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2019 |
Jan. 01, 2019 |
Jul. 01, 2018 |
|
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | |||
Beginning balance | $ 376,875 | ||
Cumulative impact from the adoption of ASU No. 2018-02 | $ (54) | ||
Ending balance | 401,986 | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge | |||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | |||
Beginning balance | (1,824) | ||
Unrealized loss recognized in AOCI | (3,714) | ||
Gain reclassified from AOCI to other expenses, net | 7 | ||
Ending balance | $ (5,748) | ||
Accounting Standards Update 2018-02 | |||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | |||
Cumulative impact from the adoption of ASU No. 2018-02 | $ 0 | ||
Accounting Standards Update 2018-02 | Accumulated Gain (Loss), Net, Cash Flow Hedge | |||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | |||
Cumulative impact from the adoption of ASU No. 2018-02 | $ (217) |
Investment Funds and Other Variable Interest Entities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Funds and Other Variable Interest Entities | INVESTMENT FUNDS AND OTHER VARIABLE INTEREST ENTITIES Investment Funds In each of September 2015, June 2017, June 2018 and October 2018, the Company formed an investment fund with a different third-party investor which granted the applicable investor ownership interests in the net assets of certain of the Company’s renewable energy project subsidiaries. The Company currently has four such investment funds each with a different third-party investor. The Company consolidates the investment funds, and all inter-company balances and transactions between the Company and the investment funds are eliminated in its condensed consolidated financial statements. The Company determined that the investment funds meet the definition of a VIE. The Company uses a qualitative approach in assessing the consolidation requirement for VIEs that focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has considered the provisions within the contractual arrangements that grant it power to manage and make decisions that affect the operation of these VIEs, including determining the solar energy systems and associated long term customer contracts to be sold or contributed to the VIEs, and installation, operation and maintenance of the solar energy systems. The Company considers that the rights granted to the other investors under the contractual arrangements are more protective in nature rather than participating rights. As such, the Company has determined it is the primary beneficiary of the VIEs for all periods presented. The Company evaluates its relationships with VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. Under the related agreements, cash distributions of income and other receipts by the funds, net of agreed-upon expenses and estimated expenses, tax benefits and detriments of income and loss, and tax benefits of tax credits, are assigned to the funds’ investor and Company’s subsidiaries as specified in contractual arrangements. Certain of these arrangements have call and put options to acquire the investor’s equity interest as specified in the contractual agreements. See Note 13 for additional information on the call and put options. A summary of amounts related to the investment funds in the Company’s condensed consolidated balance sheets is as follows:
(1) The amounts in the above table are reflected in footnote 1 on the Company’s condensed consolidated balance sheets. See the Company’s condensed consolidated balance sheets for additional information. Other Variable Interest Entities The Company follows guidance on the consolidation of VIEs that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors that indicate a party has the power to direct the activities that most significantly impact the joint ventures economic performance, including powers granted to the joint ventures program manager, powers contained in the joint venture governing board and, to a certain extent, a company's economic interest in the joint venture. The Company analyzes its joint ventures and classifies them as either:
The Company executes certain contracts jointly with third parties through various forms of joint ventures. Although the joint ventures own and hold the contracts with the clients, the services required by the contracts are typically performed by the Company and the Company’s joint venture partners, or by other subcontractors under subcontracting agreements with the joint ventures. Many of these joint ventures are formed for a specific project. The assets of the Company’s joint ventures generally consist almost entirely of cash and land, and the liabilities of our joint ventures generally consist almost entirely of amounts due to the joint venture partners. Many of the joint ventures are deemed to be VIEs because they lack sufficient equity to finance the activities of the joint venture. In January 2019, the Company entered into a joint venture with one other party to co-own an entity whose purpose is owning and leasing a parcel of land and attached structures to third-party entities. The joint venture has no employees and is controlled by the board of directors made up of representatives from both companies. Prior to January 2019, the Company had determined it was the primary beneficiary of the VIE and fully consolidated the entity. Upon the formation of the joint venture, the Company determined it was no longer the primary beneficiary, based on the assessment of considerations referenced above, and deconsolidated the VIE and recorded the Company’s investment in the joint venture as an equity method investment. With the deconsolidation of the VIE and the recognition of the equity method investment the Company recognized a gain of $2,160 in operating income and recorded an equity method investment of $1,361 in other assets. In addition, the Company has loaned the joint venture $1,506 and made an initial contribution at its formation in exchange for 50% of the shares in the joint venture. Unconsolidated joint ventures are accounted for under the equity method. For those joint ventures, the Company's investment balances for the joint venture are included in other assets on the condensed consolidated balance sheets and the Company’s pro rata share of net income or loss is included in operating income. The Company’s investments in equity method joint ventures on the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 was a net asset of $1,290 and $0, respectively. During the three and nine months ended September 30, 2019, the Company recognized expense of $73 and $147, respectively, from equity method joint ventures. |
Debt |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT As of September 30, 2019, the Company’s debt comprised the following:
(1) Financing leases do not include approximately $23,510 in future interest payments (2) These agreements have acceleration causes that, in the event of default, as defined, the payee has the option to accelerate payment terms and make due the remaining principal and the required interest balance according to the agreement Senior Secured Credit Facility - Revolver and Term Loan In June 2019, the Company amended and restated the Company’s senior secured credit facility. The amendment increased the aggregate amount of the revolving commitments from $85,000 to $115,000 through an extended June 28, 2024 maturity date, increased the term loan from $40,000 to $65,000 to reduce the outstanding revolving loan balance by the same amount and extend the maturity date from June 30, 2020 to June 28, 2024, and increased the total funded debt to EBITDA covenant ratio from a maximum of 3.00 to 3.25. The total commitment under the amended credit facility (revolving credit, term loan and swing line) is $185,000. At September 30, 2019 funds of $46,480 are available for borrowing under the revolving credit facility. July 2019 Long Term Finance Liability During the third quarter ended September 30, 2019, the Company closed on one solar PV project under the Company’s master lease agreement, as discussed in Note 8, with a twenty-year term. In accordance with ASC 842, Leases, this transaction was accounted for as a failed sale as the Company retains control of the underlying assets. The proceeds received from the transaction were recorded by the Company as a long term financing facility with an interest rate of 0.28%, as a result of tax credits which were transferred to the counterparty. The principal and interest payments are due in semi annual installments and the long term finance facility matures on July 16, 2039, with all remaining unpaid amounts outstanding under the agreement due at that time. At September 30, 2019, $4,872 was outstanding under the long term finance liability. |
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value of Goodwill Attributable to Each Reportable Segment | The changes in the carrying value of goodwill attributable to each reportable segment are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets are as follows:
|
Business Acquisitions and Related Transactions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Related Transactions | BUSINESS ACQUISITIONS AND RELATED TRANSACTIONS The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, Business Combinations. The purchase price for each has been allocated to the net assets based on their estimated fair values at the date of each acquisition as set forth in the table below. The excess purchase price over the estimated fair value of the net assets, which are calculated using level 3 inputs per the fair value hierarchy as defined in Note 10, acquired has been recorded as goodwill. Intangible assets, if identified, have been recorded and are being amortized over periods ranging from one to fifteen years. See Note 5 for additional information. Determining the fair value of certain assets and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Certain amounts below are provisional based on our best estimates using information available as of the reporting date. The Company is waiting for information to become available to finalize its valuation of certain elements of these transactions. Specifically, the assigned values for energy assets, intangibles, and goodwill are provisional in nature and subject to change upon the completion of the final valuation of such elements. In January 2019, the Company completed an acquisition of a Massachusetts based solar operations and maintenance firm for consideration of $1,279. The final purchase price is subject to a net working capital adjustment, dependent on the level of working capital at the acquisition date, that has not yet been finalized at September 30, 2019. The pro-forma effects of this acquisition on our operations are not material. During the nine months ended September 30, 2019, the Company had a measurement period adjustment of $91, which was recorded as a reduction to goodwill in connection with this acquisition. A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective period is as follows:
The results of the acquired assets since the dates of the acquisitions have been included in the Company’s operations as presented in the accompanying condensed consolidated statements of income, condensed consolidated statements of comprehensive income and condensed consolidated statements of cash flows. During the nine months ended September 30, 2019, the Company had an additional measurement period adjustment of $628 related to a 2018 acquisition which was recorded as a reduction to goodwill and included a $398 reduction in the hold back contingency discussed further in Notes 5 and 9. During the nine months ended September 30, 2019, in order to expand its portfolio of energy assets, the Company acquired 4 solar projects from a developer. The Company has concluded that in accordance with ASC 805, Business Combinations, these acquisitions did not constitute a business as the assets acquired in each case are considered a single asset or group of similar assets that made up substantially all of the fair market value of the acquisitions. See Note 6 for additional disclosures on these asset acquisitions. |
Leases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), using the modified retrospective approach. The Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company has also elected the practical expedient to not separate lease components and non-lease components and will account for the leases as a single lease component for all classes of leases. As a result of the adoption of ASC 842, the Company recognized an increase in lease ROU assets of $31,639, current portions of operating lease ROU liabilities of $5,084 and an increase to long-term portions of operating lease liabilities of $28,480. There was no net impact to the condensed consolidated statements of income or retained earnings for the adoption of ASC 842. No impairment was recognized on the ROU asset upon adoption. These adjustments are detailed as follows:
The Company enters into a variety of operating lease agreements through the normal course of its business including certain administrative offices. The leases are long-term, non-concealable real estate lease agreements, expiring at various dates through fiscal 2025. The agreements generally provide for fixed minimum rental payments and the payment of utilities, real estate taxes, insurance and repairs. The Company also leases certain land parcels related to our energy projects, expiring at various dates through fiscal 2044. The office and land leases make up a significant portion of the Company’s operating lease activity. Many of these leases have one or more renewal options that allow the Company, at it’s discretion, to renew the lease for six months to seven years. Only renewal options that the Company believed were likely to be exercised were included in our lease calculations. Many land leases include minimum lease payments that increase when the related project becomes operational. In these cases, the commercial operation date was estimated by the Company and used to calculate the estimated minimum lease payments. The Company also enters into leases for IT equipment and service agreements, automobiles, and other leases related to our construction projects such as equipment, mobile trailers and other temporary structures. The Company utilizes the portfolio approach for this class of lease. These leases are either short-term in nature or immaterial. A portion of the Company’s real estate leases are generally subject to annual changes in the Consumer Price Index (“CPI”). The Company utilized each lease’s minimum lease payments to calculate the lease balances upon transition. The subsequent increases in rent based on changes in CPI were excluded and will be excluded for future leases from the calculation of the lease balances, but will be recorded to the condensed consolidated statement of income as part of our operating lease costs. The Company has elected the practical expedient to not separate lease and non-lease components for existing leases for real estate and land leases. Going forward if a lease has non-lease components the Company will allocate consideration based on price information in the agreement or, if this information is not available, the Company will make a good faith estimate based on available pricing information at the time. The discount rate was calculated using an incremental borrowing rate based on financing rates on secured comparable notes with comparable terms and a synthetic credit rating calculated by a third party. The Company elected to apply the discount rate using the remaining lease term at the date of adoption. The Company has a number of leases that are classified as financing leases, which relate to transactions that are considered sale-leasebacks under ASC 840. See the sale-leaseback section below for additional information on the Company’s financing leases. Supplemental balance sheet information related to leases at September 30, 2019 is as follows:
The costs related to our leases are as follows:
The Company’s estimated minimum future lease obligations under our leases are as follows:
The Company has determined that certain power purchase agreements (“PPAs”) contain a lease component in accordance with ASC 840, Leases. The Company recognized $2,243 and $6,737 of operating lease revenue under these agreements during the three and nine months ended September 30, 2019, respectively, which was reflected in revenues on the condensed consolidated statements of income. PPAs signed after January 1, 2019 no longer meet the definition of a lease upon the adoption of ASC 842, Leases, and are instead accounted for in accordance with ASC 606, Revenues From Contracts With Customers. Sale-Leaseback For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a financing lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be financing leases. For leasebacks classified as financing leases, the Company initially records a financing lease asset and financing lease obligation in its condensed consolidated balance sheets equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For financing leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s condensed consolidated balance sheets at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its condensed consolidated balance sheets and amortizes the deferred amounts over the lease term in cost of revenues in its condensed consolidated statements of income. Net amortization expense in cost of revenues related to deferred gains and losses was $57 and $48 of net gains for the three months ended September 30, 2019 and 2018, respectively. Net amortization expense in cost of revenues related to deferred gains and losses was $172 and $153 for the nine months ended September 30, 2019 and 2018, respectively. During the third quarter of 2018, the Company entered into an agreement with an investor which gives us the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects through August 2019 up to a maximum funding amount of $100.0 million. The Company amended this agreement to extend the term through November 2019. As of September 30, 2019, $90.2 million remained available under the lending commitment. A summary of amounts related to sale leasebacks in the Company’s condensed consolidated balance sheets is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), using the modified retrospective approach. The Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company has also elected the practical expedient to not separate lease components and non-lease components and will account for the leases as a single lease component for all classes of leases. As a result of the adoption of ASC 842, the Company recognized an increase in lease ROU assets of $31,639, current portions of operating lease ROU liabilities of $5,084 and an increase to long-term portions of operating lease liabilities of $28,480. There was no net impact to the condensed consolidated statements of income or retained earnings for the adoption of ASC 842. No impairment was recognized on the ROU asset upon adoption. These adjustments are detailed as follows:
The Company enters into a variety of operating lease agreements through the normal course of its business including certain administrative offices. The leases are long-term, non-concealable real estate lease agreements, expiring at various dates through fiscal 2025. The agreements generally provide for fixed minimum rental payments and the payment of utilities, real estate taxes, insurance and repairs. The Company also leases certain land parcels related to our energy projects, expiring at various dates through fiscal 2044. The office and land leases make up a significant portion of the Company’s operating lease activity. Many of these leases have one or more renewal options that allow the Company, at it’s discretion, to renew the lease for six months to seven years. Only renewal options that the Company believed were likely to be exercised were included in our lease calculations. Many land leases include minimum lease payments that increase when the related project becomes operational. In these cases, the commercial operation date was estimated by the Company and used to calculate the estimated minimum lease payments. The Company also enters into leases for IT equipment and service agreements, automobiles, and other leases related to our construction projects such as equipment, mobile trailers and other temporary structures. The Company utilizes the portfolio approach for this class of lease. These leases are either short-term in nature or immaterial. A portion of the Company’s real estate leases are generally subject to annual changes in the Consumer Price Index (“CPI”). The Company utilized each lease’s minimum lease payments to calculate the lease balances upon transition. The subsequent increases in rent based on changes in CPI were excluded and will be excluded for future leases from the calculation of the lease balances, but will be recorded to the condensed consolidated statement of income as part of our operating lease costs. The Company has elected the practical expedient to not separate lease and non-lease components for existing leases for real estate and land leases. Going forward if a lease has non-lease components the Company will allocate consideration based on price information in the agreement or, if this information is not available, the Company will make a good faith estimate based on available pricing information at the time. The discount rate was calculated using an incremental borrowing rate based on financing rates on secured comparable notes with comparable terms and a synthetic credit rating calculated by a third party. The Company elected to apply the discount rate using the remaining lease term at the date of adoption. The Company has a number of leases that are classified as financing leases, which relate to transactions that are considered sale-leasebacks under ASC 840. See the sale-leaseback section below for additional information on the Company’s financing leases. Supplemental balance sheet information related to leases at September 30, 2019 is as follows:
The costs related to our leases are as follows:
The Company’s estimated minimum future lease obligations under our leases are as follows:
The Company has determined that certain power purchase agreements (“PPAs”) contain a lease component in accordance with ASC 840, Leases. The Company recognized $2,243 and $6,737 of operating lease revenue under these agreements during the three and nine months ended September 30, 2019, respectively, which was reflected in revenues on the condensed consolidated statements of income. PPAs signed after January 1, 2019 no longer meet the definition of a lease upon the adoption of ASC 842, Leases, and are instead accounted for in accordance with ASC 606, Revenues From Contracts With Customers. Sale-Leaseback For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a financing lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be financing leases. For leasebacks classified as financing leases, the Company initially records a financing lease asset and financing lease obligation in its condensed consolidated balance sheets equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For financing leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s condensed consolidated balance sheets at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its condensed consolidated balance sheets and amortizes the deferred amounts over the lease term in cost of revenues in its condensed consolidated statements of income. Net amortization expense in cost of revenues related to deferred gains and losses was $57 and $48 of net gains for the three months ended September 30, 2019 and 2018, respectively. Net amortization expense in cost of revenues related to deferred gains and losses was $172 and $153 for the nine months ended September 30, 2019 and 2018, respectively. During the third quarter of 2018, the Company entered into an agreement with an investor which gives us the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects through August 2019 up to a maximum funding amount of $100.0 million. The Company amended this agreement to extend the term through November 2019. As of September 30, 2019, $90.2 million remained available under the lending commitment. A summary of amounts related to sale leasebacks in the Company’s condensed consolidated balance sheets is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), using the modified retrospective approach. The Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company has also elected the practical expedient to not separate lease components and non-lease components and will account for the leases as a single lease component for all classes of leases. As a result of the adoption of ASC 842, the Company recognized an increase in lease ROU assets of $31,639, current portions of operating lease ROU liabilities of $5,084 and an increase to long-term portions of operating lease liabilities of $28,480. There was no net impact to the condensed consolidated statements of income or retained earnings for the adoption of ASC 842. No impairment was recognized on the ROU asset upon adoption. These adjustments are detailed as follows:
The Company enters into a variety of operating lease agreements through the normal course of its business including certain administrative offices. The leases are long-term, non-concealable real estate lease agreements, expiring at various dates through fiscal 2025. The agreements generally provide for fixed minimum rental payments and the payment of utilities, real estate taxes, insurance and repairs. The Company also leases certain land parcels related to our energy projects, expiring at various dates through fiscal 2044. The office and land leases make up a significant portion of the Company’s operating lease activity. Many of these leases have one or more renewal options that allow the Company, at it’s discretion, to renew the lease for six months to seven years. Only renewal options that the Company believed were likely to be exercised were included in our lease calculations. Many land leases include minimum lease payments that increase when the related project becomes operational. In these cases, the commercial operation date was estimated by the Company and used to calculate the estimated minimum lease payments. The Company also enters into leases for IT equipment and service agreements, automobiles, and other leases related to our construction projects such as equipment, mobile trailers and other temporary structures. The Company utilizes the portfolio approach for this class of lease. These leases are either short-term in nature or immaterial. A portion of the Company’s real estate leases are generally subject to annual changes in the Consumer Price Index (“CPI”). The Company utilized each lease’s minimum lease payments to calculate the lease balances upon transition. The subsequent increases in rent based on changes in CPI were excluded and will be excluded for future leases from the calculation of the lease balances, but will be recorded to the condensed consolidated statement of income as part of our operating lease costs. The Company has elected the practical expedient to not separate lease and non-lease components for existing leases for real estate and land leases. Going forward if a lease has non-lease components the Company will allocate consideration based on price information in the agreement or, if this information is not available, the Company will make a good faith estimate based on available pricing information at the time. The discount rate was calculated using an incremental borrowing rate based on financing rates on secured comparable notes with comparable terms and a synthetic credit rating calculated by a third party. The Company elected to apply the discount rate using the remaining lease term at the date of adoption. The Company has a number of leases that are classified as financing leases, which relate to transactions that are considered sale-leasebacks under ASC 840. See the sale-leaseback section below for additional information on the Company’s financing leases. Supplemental balance sheet information related to leases at September 30, 2019 is as follows:
The costs related to our leases are as follows:
The Company’s estimated minimum future lease obligations under our leases are as follows:
The Company has determined that certain power purchase agreements (“PPAs”) contain a lease component in accordance with ASC 840, Leases. The Company recognized $2,243 and $6,737 of operating lease revenue under these agreements during the three and nine months ended September 30, 2019, respectively, which was reflected in revenues on the condensed consolidated statements of income. PPAs signed after January 1, 2019 no longer meet the definition of a lease upon the adoption of ASC 842, Leases, and are instead accounted for in accordance with ASC 606, Revenues From Contracts With Customers. Sale-Leaseback For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a financing lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be financing leases. For leasebacks classified as financing leases, the Company initially records a financing lease asset and financing lease obligation in its condensed consolidated balance sheets equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For financing leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s condensed consolidated balance sheets at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its condensed consolidated balance sheets and amortizes the deferred amounts over the lease term in cost of revenues in its condensed consolidated statements of income. Net amortization expense in cost of revenues related to deferred gains and losses was $57 and $48 of net gains for the three months ended September 30, 2019 and 2018, respectively. Net amortization expense in cost of revenues related to deferred gains and losses was $172 and $153 for the nine months ended September 30, 2019 and 2018, respectively. During the third quarter of 2018, the Company entered into an agreement with an investor which gives us the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects through August 2019 up to a maximum funding amount of $100.0 million. The Company amended this agreement to extend the term through November 2019. As of September 30, 2019, $90.2 million remained available under the lending commitment. A summary of amounts related to sale leasebacks in the Company’s condensed consolidated balance sheets is as follows:
|
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Jan. 01, 2019 |
Jul. 01, 2018 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative impact from the adoption of ASU | $ (54) | |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative impact from the adoption of ASU | $ 0 | |
Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative impact from the adoption of ASU | $ 0 | |
Accounting Standards Update 2018-02 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative impact from the adoption of ASU | 217 | |
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative impact from the adoption of ASU | $ (217) |
Earnings Per Share and Other Equity Related Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares, including vested restricted shares. When the effects are not anti-dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares; the dilutive effect of convertible preferred stock, under the “if converted” method; and the treasury stock method with regard to warrants and stock options; all as determined under the treasury stock method.
|
Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities, Lessee | Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. Financing lease assets consist of the following:
Supplemental balance sheet information related to leases at September 30, 2019 is as follows:
These adjustments are detailed as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Costs | The costs related to our leases are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finance Lease Liability Maturity | The Company’s estimated minimum future lease obligations under our leases are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Lease Liability Maturity | The Company’s estimated minimum future lease obligations under our leases are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amount Related to Sale Leasebacks | A summary of amounts related to sale leasebacks in the Company’s condensed consolidated balance sheets is as follows:
|
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 939 | $ 3,351 | $ 2,000 | $ 1,879 | |
Effective tax rate, percentage | 10.10% | 23.80% | 9.20% | 6.50% | |
Effective income tax rate reconciliation, Section 179D deduction | $ 5,900 | ||||
Gross unrecognized tax benefits | $ 1,600 | $ 1,600 | 1,600 | ||
Unrecognized tax benefits, if recognized would affect effective income tax rate | $ 705 | $ 705 | $ 705 |
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
||||
---|---|---|---|---|---|---|---|
Operating Leases: | |||||||
Operating lease assets | $ 32,540 | [1] | $ 31,639 | $ 0 | [1] | ||
Current operating lease liabilities | 5,935 | [1] | 5,084 | 0 | |||
Long-term portions of operating lease liabilities | 28,799 | [1] | 28,480 | 0 | |||
Total operating lease liabilities | $ 34,734 | $ 33,564 | |||||
Operating lease, weighted-average remaining lease term | 10 years | 10 years | |||||
Operating lease, weighted-average discount rate | 6.30% | 6.00% | |||||
Financing Leases: | |||||||
Energy assets, net | $ 36,666 | $ 38,263 | 38,263 | ||||
Current portions of financing lease liabilities | 5,008 | 4,956 | |||||
Long-term financing lease liabilities, less current portions and net of deferred financing fees | 26,098 | 28,407 | |||||
Total financing lease liability | $ 31,106 | $ 33,363 | $ 33,363 | ||||
Financing lease, weighted-average remaining lease term | 17 years | 18 years | |||||
Financing lease, weighted-average discount rate | 11.80% | 11.70% | |||||
|
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
1 Months Ended | |||
---|---|---|---|---|
Aug. 31, 2018 |
Sep. 30, 2019 |
Nov. 30, 2018 |
May 31, 2018 |
|
Undisclosed Name of Acquiree 1 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability, certain acquired receivables | $ 27 | $ 425 | ||
Undisclosed Name of Acquiree 2 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability, revenue earn-outs, payment period | 5 years | |||
Contingent consideration, liability, fair value at date of acquisition | $ 555 | 650 | ||
Undisclosed Name Of Acquiree 3 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability | $ 378 | $ 363 |
Business Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 212,026 | $ 205,375 | $ 560,321 | $ 569,767 |
Interest income | 182 | 76 | 396 | 209 |
Interest expense | 3,149 | 3,776 | 9,337 | 10,721 |
Depreciation and amortization of intangible assets | 9,413 | 7,214 | 27,898 | 21,001 |
Income (loss) before taxes, excluding unallocated corporate activity | 17,752 | 22,699 | 47,040 | 52,054 |
U.S. Regions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 84,079 | 86,402 | 227,896 | 249,871 |
U.S. Federal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 71,258 | 62,378 | 169,337 | 168,377 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,665 | 11,604 | 27,696 | 28,466 |
Non-Solar DG | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,875 | 22,138 | 66,370 | 60,176 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 22,149 | 22,853 | 69,022 | 62,877 |
Operating Segments | U.S. Regions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 84,079 | 86,402 | 227,896 | 249,871 |
Interest income | 69 | 2 | 132 | 5 |
Interest expense | 1,548 | 1,403 | 4,118 | 3,911 |
Depreciation and amortization of intangible assets | 2,538 | 1,341 | 7,184 | 4,048 |
Income (loss) before taxes, excluding unallocated corporate activity | 3,350 | 5,256 | 5,530 | 14,606 |
Operating Segments | U.S. Federal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 71,258 | 62,378 | 169,337 | 168,377 |
Interest income | 92 | 36 | 160 | 84 |
Interest expense | 209 | 225 | 627 | 771 |
Depreciation and amortization of intangible assets | 901 | 671 | 2,524 | 2,004 |
Income (loss) before taxes, excluding unallocated corporate activity | 10,967 | 10,969 | 26,631 | 26,864 |
Operating Segments | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,665 | 11,604 | 27,696 | 28,466 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 179 | 480 | 517 | 1,464 |
Depreciation and amortization of intangible assets | 396 | 294 | 986 | 873 |
Income (loss) before taxes, excluding unallocated corporate activity | 1,577 | 664 | 1,529 | (1,983) |
Operating Segments | Non-Solar DG | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,875 | 22,138 | 66,370 | 60,176 |
Interest income | 21 | 38 | 65 | 120 |
Interest expense | 1,213 | 1,681 | 4,075 | 4,575 |
Depreciation and amortization of intangible assets | 5,149 | 4,530 | 16,051 | 12,942 |
Income (loss) before taxes, excluding unallocated corporate activity | 977 | 3,851 | 5,758 | 8,796 |
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 22,149 | 22,853 | 69,022 | 62,877 |
Interest income | 0 | 0 | 39 | 0 |
Interest expense | 0 | (13) | 0 | 0 |
Depreciation and amortization of intangible assets | 429 | 378 | 1,153 | 1,134 |
Income (loss) before taxes, excluding unallocated corporate activity | 881 | 1,959 | 7,592 | 3,771 |
Unallocated corporate activity | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate activity | $ (8,482) | $ (8,648) | $ (25,331) | $ (23,269) |
Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying value of goodwill attributable to each reportable segment are as follows:
The Company completed one acquisition during the nine months ended September 30, 2019, which resulted in a $315 net increase in goodwill as disclosed in Note 4. During the nine months ended September 30, 2019, the Company recorded measurement period adjustments which resulted in a reduction of goodwill of $719. See Note 4 for further discussion surrounding the measurement period adjustments. Since the Company’s annual goodwill impairment test there have been no events that would have triggered a need for an interim impairment test. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. The Company annually assesses whether a change in the life over which the Company’s assets are amortized is necessary, or more frequently if events or circumstances warrant. Acquired intangible assets other than goodwill that are subject to amortization include customer contracts, customer relationships, non-compete agreements, technology and trade names. Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to five years. All other acquired intangible assets are amortized over periods ranging from approximately four to fifteen years, as determined by the nature of the respective intangible asset. As discussed in Note 4, the Company completed an acquisition in January 2019 which resulted in a $500 increase in customer relationships, which will be amortized over an 8 year period. The gross carrying amount and accumulated amortization of intangible assets are as follows:
Amortization expense related to customer contracts is included in cost of revenues in the condensed consolidated statements of income. Amortization expense related to all other acquired intangible assets is included in selling, general and administrative expenses in the condensed consolidated statements of income. Amortization expense for the three months ended September 30, 2019 and 2018 related to customer contracts was $22 and $0, respectively. Amortization expense for the three months ended September 30, 2019 and 2018 related to all other acquired intangible assets and was $202 and $269, respectively. Amortization expense for the nine months ended September 30, 2019 and 2018 related to customer contracts was $67 and $0, respectively. Amortization expense for the nine months ended September 30, 2019 and 2018 related to all other acquired intangible assets and was $614 and $771, respectively. |
Commitments and Contingencies |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is involved in a variety of claims and other legal proceedings generally incidental to its normal business activities. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on its financial condition or results of operations. Commitments as a Result of Acquisitions In May 2018, the Company completed an acquisition which provided for a $425 cash consideration hold back upon the Company collecting certain acquired receivables, which was subsequently reduced to $27. As of September 30, 2019. the consideration is currently due and is recorded in the accrued expenses and other current liabilities line on the condensed consolidated balance sheets. In August 2018, the Company completed an acquisition which provided for a revenue earn-out contingent upon the acquired business meeting certain cumulative revenue targets over five years from the acquisition date. The Company evaluated financial forecasts of the acquired business and concluded that the fair value of this earn-out was approximately $555, which was subsequently increased to $650 as of September 30, 2019 and is recorded in the other liabilities on the condensed consolidated balance sheets. The contingent consideration will be paid yearly, commencing in 2020, if any of the cumulative revenue targets are achieved. The fair value of the earn-out will be periodically re-evaluated and adjustments will be recorded as needed. See Note 10 for additional information. In November 2018, the Company completed an acquisition of certain lease options, which provided for an earn-out if the lease option is exercised and if certain financial metrics are achieved. The Company evaluated the acquired lease options and concluded that the fair-value of this contingent liability was approximately $363, which was subsequently increased to $378 at September 30, 2019 and is recorded in accrued expenses and other current liabilities and other liabilities on the condensed consolidated balance sheets. Payments will be made when milestones are achieved. The contingent liability will be periodically re-evaluated and adjustments will be recorded as needed. See Note 10 for additional information. |
Investment Funds And Other Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | A summary of amounts related to the investment funds in the Company’s condensed consolidated balance sheets is as follows:
(1) The amounts in the above table are reflected in footnote 1 on the Company’s condensed consolidated balance sheets. See the Company’s condensed consolidated balance sheets for additional information. |
Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
|
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
---|---|---|---|
Accounting Policies [Abstract] | |||
Restricted cash non-current | $ 22,782 | $ 19,637 | $ 19,025 |
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Liabilities: | ||
Total liabilities | $ 9,501 | $ 6,027 |
Level 2 | ||
Assets: | ||
Total assets | 208 | 766 |
Level 2 | Interest rate swap instruments | ||
Assets: | ||
Total assets | 41 | 733 |
Liabilities: | ||
Liability derivatives | 7,600 | 3,187 |
Level 2 | Commodity swap instruments | ||
Assets: | ||
Total assets | 167 | 33 |
Liabilities: | ||
Liability derivatives | 0 | 70 |
Level 2 | Interest make-whole provisions | ||
Liabilities: | ||
Liability derivatives | 873 | 1,808 |
Level 3 | ||
Liabilities: | ||
Contingent revenue earn-out | $ 1,028 | $ 962 |
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
| |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance, December 31, 2018 | $ 1,600 |
Additions for prior year tax positions | 0 |
Settlements with tax authorities | 0 |
Reductions of prior year tax positions | 0 |
Balance, September 30, 2019 | $ 1,600 |
?YR1.7Z6]<)=^/WCA^P>F-K6,*F*O+G,5]%W M0X"8WVJRF\Q;?>W(V5%G6'ULEZ29"+WT=2HG1NCO'].LE^5MV<=H(CA?L/"V M<+F[MQ0UY^UISHMO_]=MX%4";YFM& P*MBT>M@-].Z)B&>)7$GE#T-@_#K"= M8:?7F?_]58&B4!45Y-U0%%#7<39JBHMJBDMWG-W9S:G-"EZYACE%4O%J%%M# M[-SVX#'FM*]7?>UEV=J8%&A^L-X$&.R41(I6+%JQ)J>:KCR#%#,[#51G+;.& M+5!E-YTQC[Y8A,%I-O3:G95JV.Y)([)?K
''94P9=QPZ<<7%:_;D1Z(=LTND/._=[GC[W/O1+
M"Q=[,<*HM)+X))%$A6,DA)ERDR]*$_1RQG53><6,ZU%!( 0!AT(B'>X! LOZ
M_]A[M^9(C-Q*^+_X71MY0R;PX@CDS9Z-T274FO4WWXNC1%9WE\TFM452FO:O
M7Z#8%[*R[BR2Q=9XQII6LT@"R$S@(!,X4$#1Y'LD5W>"J\;9GB.N.K[$&V?Y
MFIH3.[= 7*OA
MZ_IP5+UG"4;H@X4 +4OX#"XFB4P2%]T )9VXEKA>W/5B'4F1DT*@)I1F74]5
M5A=DH05D)V3LBY%WS0_7-2Z&:%_(=ILPB8.,#)QC3Z1'E&MK9*@@$N641WHT
MY4>++Z?(26V"XEA+18U>^8B3 \JF$=E
GA:FU>$RMC-TA?HG'ZM498R,?L,9W,!6,]TIN1D@Y
M)PD#M?J,.$!Q6*K2?0IC_#"]*9/K]S_-KWZ?G4_/\\>_7>OHI"]XF\]N9K\?
M-I\B,(*6&/I"%E(SF!:\/HV3QQK\V,J1,"T5DNXNW;%TVK*$N=4$S=0F8 -8
M/#K[@JGVJG.