Revenues, Contract Assets and Contract Liabilities

6 Months Ended

Jun. 30, 2019

Operating revenues:

Revenues, Contract Assets and Contract Liabilities

Note 5. – Revenues, Contract Assets and Contract Liabilities

Disaggregation of Total Net Sales

The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows.

	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Fixed price contracts	$	46,721	$	37,814	$	88,897	$	80,030
Product sales		67,162		51,155		132,154		96,099
Total Revenues	$	113,883	$	88,969	$	221,051	$	176,129

The following table presents geographical information about revenues.

	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Colombia	$	12,165	$	15,557	$	25,153	$	37,381
United States		99,326		69,852		191,360		132,845
Panama		913		1,043		1,676		1,857
Other		1,479		2,517		2,862		4,046
Total Revenues	$	113,883	$	88,969	$	221,051	$	176,129

Contract Assets and Liabilities

Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales, but have not been billed to customers and are classified as current and a portion of the amounts billed on certain fixed price contracts that are withheld by the customer as a retainage until a final good receipt of the complete project to the customers satisfaction. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract by contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in other liabilities in the Company’s consolidated balance sheets.

The table below presents the components of net contract assets (liabilities).

	June 30, 2019			December 31, 2018
Contract assets — current	$	50,580		$	46,018
Contract assets — non-current		8,601			6,986
Contract liabilities — current		(14,013	)		(16,789	)
Contract liabilities — non-current		(564	)		(1,436	)
Net contract assets	$	44,604		$	34,779

The components of contract assets are presented in the table below.

	June 30, 2019		December 31, 2018
Unbilled contract receivables, gross	$	27,644	$	21,703
Retainage		31,537		31,301
Total contract assets		59,181		53,004
Less: current portion		50,580		46,018
Contract Assets – non-current	$	8,601	$	6,986

The components of contract liabilities are presented in the table below.

	June 30, 2019		December 31, 2018
Billings in excess of costs	$	3,101		4,393
Advances from customers on uncompleted contracts		11,476		13,832
Total contract liabilties		14,577		18,225
Less: current portion		14,013		16,789
Contract liabilities – non-current	$	564		1,436

During the three months and six months ended June 30, 2019, the Company recognized $4,041 and $1,759 of sales related to its contract liabilities at January 1, 2019, respectively. During the three and six months ended June 30, 2018, the Company recognized $2,306 and $1,086 of sales related to its contract liabilities at January 1, 2018, respectively.

Remaining Performance Obligations

As of June 30, 2019, the Company had $285.9 million of remaining performance obligations, which represents the transaction price of firm orders minus sales recognized from inception to date. Remaining performance obligations exclude unexercised contract options, verbal commitments and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales relating to existing performance obligations within three years, of which $145.6 million are expected to be recognized during the year ending December 31, 2019, $115.5 million during the year ending December 31, 2020 and $24.9 million thereafter.