Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | North American Construction Group Ltd. |
Entity Central Index Key | 1,368,519 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 27,088,816 |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash | $ 19,508 | $ 8,186 |
Accounts receivable, net (notes 6 and 19(c)) | 82,399 | 46,806 |
Contract assets (note 19(c)) | 10,673 | 21,572 |
Inventories | 13,391 | 4,754 |
Prepaid expenses and deposits (note 7) | 3,736 | 1,898 |
Assets held for sale (notes 8 and 16(a)) | 672 | 5,642 |
Total current assets | 130,379 | 88,858 |
Property, plant and equipment, net of accumulated depreciation $248,885 (2017 – $220,320) (note 9) | 528,157 | 278,648 |
Other assets (note 10) | 10,204 | 5,599 |
Investments in affiliates and joint ventures (note 13(a)) | 11,788 | 0 |
Deferred tax assets (note 11) | 9,272 | 10,539 |
Total Assets | 689,800 | 383,644 |
Current liabilities | ||
Accounts payable | 63,460 | 35,191 |
Accrued liabilities (note 12) | 19,157 | 12,434 |
Contract liabilities (note 19(c)) | 4,032 | 824 |
Current portion of long term debt (note 14(a)) | 29,996 | 0 |
Current portion of capital lease obligations (note 15) | 32,250 | 29,136 |
Total current liabilities | 148,895 | 77,585 |
Long term debt (note 14(a)) | 265,962 | 70,065 |
Capital lease obligations (note 15) | 54,318 | 37,833 |
Other long term obligations (note 17(a)) | 25,623 | 14,080 |
Deferred tax liabilities (note 11) | 44,787 | 38,157 |
Total Liabilities | 539,585 | 237,720 |
Shareholders' Equity | ||
Common shares (authorized – unlimited number of voting common shares; issued and outstanding – December 31, 2018 - 27,088,816 (December 31, 2017 – 28,070,150)) (note 18(a)) | 221,773 | 231,020 |
Treasury shares (December 31, 2018 - 2,084,611 (December 31, 2017 - 2,617,926)) (note 18(a)) | (11,702) | (12,350) |
Additional paid-in capital | 53,567 | 54,416 |
Deficit | (113,917) | (127,162) |
Shareholders' equity attributable to common shareholders | 149,721 | 145,924 |
Noncontrolling interest (note 13(a)) | 494 | 0 |
Total Shareholders' Equity | 150,215 | 145,924 |
Total Liabilities and Equity | 689,800 | 383,644 |
Commitments (note 20) | ||
Contingencies (note 27) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 248,885 | $ 220,320 |
Common shares, authorized | unlimited | unlimited |
Common shares, issued (in shares) | 27,088,816 | 28,070,150 |
Common shares, outstanding (in shares) | 27,088,816 | 28,070,150 |
Treasury shares (in shares) | 2,084,611 | 2,617,926 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($)$ / shares | Dec. 31, 2017CAD ($)$ / shares | |
Income Statement [Abstract] | ||
Revenue (note 19) | $ 410,061 | $ 292,557 |
Project costs | 152,943 | 116,346 |
Equipment costs | 129,692 | 91,829 |
Depreciation | 58,350 | 44,735 |
Gross profit | 69,076 | 39,647 |
General and administrative expenses | 37,110 | 25,299 |
Loss on sublease (note 17(e)) | 1,732 | 0 |
Loss on disposal of property, plant and equipment | 111 | 189 |
Gain on disposal of assets held for sale (note 8) | (269) | (166) |
Amortization of intangible assets (note 10(b)) | 412 | 918 |
Operating income before the undernoted | 29,980 | 13,407 |
Interest expense, net (note 21) | 8,584 | 6,943 |
Equity earnings in affiliates and joint ventures (note 13(a)) | (60) | 0 |
Foreign exchange loss (gain) | 39 | (4) |
Income before income taxes | 21,417 | 6,468 |
Deferred income tax expense (note 11) | 6,096 | 1,204 |
Comprehensive income | 15,286 | 5,264 |
Net income | 15,321 | 5,264 |
Net income attributable to noncontrolling interest (note 13(a)) | (35) | 0 |
Net income available to shareholders | 15,286 | 5,264 |
Comprehensive income available to shareholders | $ 15,321 | $ 5,264 |
Per share information | ||
Net income - basic (in CAD per share) | (per share) | $ 0.61 | $ 0.20 |
Net income - diluted (in CAD per share) | (per share) | $ 0.54 | $ 0.18 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Total | Shareholders' equity attributable to common shareholders | Common shares | Treasury shares | Additional paid-in capital | Deficit | Noncontrolling interest |
Beginning balance at Dec. 31, 2016 | $ 158,954 | $ 158,954 | $ 252,633 | $ (9,294) | $ 45,915 | $ (130,300) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,264 | 5,264 | 5,264 | ||||
Exercised options (note 22(b)) | 575 | 575 | 960 | (385) | |||
Stock-based compensation (note 22) | 2,925 | 2,925 | 1,642 | 1,283 | |||
Dividends (note 18(d)) ($0.08 per share) | (2,126) | (2,126) | (2,126) | ||||
Share purchase programs (note 18(c)) | (14,970) | (14,970) | (22,573) | 7,603 | |||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 18(a)) | (4,698) | (4,698) | (4,698) | ||||
Ending balance at Dec. 31, 2017 | 145,924 | 145,924 | 231,020 | (12,350) | 54,416 | (127,162) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,321 | 15,286 | 15,286 | 35 | |||
Exercised options (note 22(b)) | 1,023 | 1,023 | 1,704 | (681) | |||
Stock-based compensation (note 22) | 4,117 | 4,117 | 5,720 | (1,603) | |||
Dividends (note 18(d)) ($0.08 per share) | (1,996) | (1,996) | (1,996) | ||||
Share purchase programs (note 18(c)) | (9,540) | (9,540) | (10,975) | 1,435 | |||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 18(a)) | (5,072) | (5,072) | (5,072) | ||||
Conversion of Convertible Debentures (note 14(c)) | 24 | 24 | 24 | ||||
Noncontrolling interest acquired in affiliates and joint ventures | 459 | 459 | |||||
Ending balance at Dec. 31, 2018 | $ 150,215 | $ 149,721 | $ 221,773 | $ (11,702) | $ 53,567 | $ (113,917) | $ 494 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in CAD per share) | $ 0.08 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||
Net income and comprehensive income | $ 15,321 | $ 5,264 |
Adjustments to reconcile to net cash from operating activities: | ||
Depreciation | 58,350 | 44,735 |
Amortization of intangible assets (note 10(b)) | 412 | 918 |
Lease inducement received (note 17(b)) | 1,412 | 0 |
Amortization of deferred financing costs (notes 10(c), 14(e) and 21) | 539 | 797 |
Loss on sublease (note 17(e)) | 1,732 | 0 |
Loss on disposal of property, plant and equipment | 111 | 189 |
Gain on disposal of assets held for sale (note 8) | (269) | (166) |
Stock-based compensation expense (note 22(a)) | 11,532 | 3,995 |
Cash settlement of stock-based compensation (note 22(e)) | 0 | (343) |
Equity earnings in affiliates and joint ventures (note 13(a)) | (60) | 0 |
Other adjustments to cash from operating activities | 17 | 181 |
Deferred income tax expense (note 11) | 6,096 | 1,204 |
Net changes in non-cash working capital (note 23(b)) | 14,178 | (7,029) |
Total operating activities | 109,371 | 49,745 |
Investing activities: | ||
Acquisition of heavy construction fleet and related assets (note 5(b)) | (151,180) | 0 |
Purchase of property, plant and equipment | (31,911) | 0 |
Investment in DNSS Partnership (note 13(b)) | 0 | (1,177) |
Purchase of property, plant and equipment | (81,078) | (53,813) |
Additions to intangible assets (note 10(b)) | (380) | (66) |
Proceeds on disposal of property, plant and equipment | 30,982 | 20,790 |
Proceeds on disposal of assets held for sale | 5,292 | 1,640 |
Additions to other long term receivable (note 10) | (619) | 0 |
Net repayment of (advances to) DNSS Partnership loan (notes 10(a) and 13(b)) | 280 | (969) |
Total investing activities | (228,614) | (33,595) |
Financing activities: | ||
Repayment of credit facilities | (88,209) | (19,941) |
Increase in credit facilities | 248,000 | 11,732 |
Issuance of Convertible Debentures (note 14(c)) | 0 | 40,000 |
Mortgage proceeds (note 14(d)) | 19,900 | 0 |
Financing costs (notes 10(c) and note 14(e)) | (848) | (2,982) |
Repayment of capital lease obligations | (32,142) | (29,161) |
Repayment of equipment promissory notes | (541) | 0 |
Proceeds from options exercised (note 22(b)) | 1,023 | 575 |
Dividend payments (note 18(d)) | (2,006) | (2,185) |
Share purchase programs (note 18(c)) | (9,540) | (14,970) |
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 18(a)) | (5,072) | (4,698) |
Total financing activities | 130,565 | (21,630) |
Increase (decrease) in cash | 11,322 | (5,480) |
Cash, beginning of year | 8,186 | 13,666 |
Cash, end of year | $ 19,508 | $ 8,186 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations North American Construction Group Ltd. ("NACG" or the “Company”), which prior to a name change registration on April 11, 2018 was known as "North American Energy Partners Inc.", was formed under the Canada Business Corporations Act. The Company and its predecessors have been operating continuously since 1953 primarily in Western Canada providing a wide range of mining and heavy construction services to customers in the resource development and industrial construction sectors. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies a) Basis of presentation These consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("US GAAP"). These consolidated financial statements include the accounts of the Company, its wholly-owned, Canadian incorporated subsidiaries and via certain of its subsidiaries, the Company also holds investments in other Canadian corporations, partnerships and joint ventures. All significant intercompany transactions and balances are eliminated upon consolidation. The Company consolidates variable interest entities (“VIE”s) for which it is considered to be the primary beneficiary as well as voting interest entities in which it has a controlling financial interest. Ownership represented by other parties that do not control the entities are presented in the consolidated financial statements as activities and balances attributable to noncontrolling interests. The consolidated financial statements include the accounts of VIEs for which the Company is the primary beneficiary. A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Upon inception or acquisition of a contractual agreement, the Company performs an assessment to determine whether the arrangement contains a variable interest in a legal entity and whether that legal entity is a VIE. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE entity that could potentially be significant to the VIE. Where it is concluded that the Company is the primary beneficiary of a VIE, the Company will consolidate the accounts of that VIE. The Company assesses all variable interests in the entity and uses its judgment when determining if it is the primary beneficiary. Other qualitative factors that are considered include decision-making responsibilities, the VIE capital structure, risk and rewards sharing, contractual agreements with the VIE, voting rights and level of involvement of other parties. The Company assesses the primary beneficiary determination for a VIE on an ongoing basis as changes occur in the facts and circumstances related to a VIE. Investees and joint ventures over which the Company exercises significant influence are accounted for using the equity method and are included in “investments in affiliates and joint ventures” within the accompanying consolidated balance sheet. The Company has elected to apply the provision available to entities operating within the construction industry to apply proportionate consolidation to unincorporated entities that would otherwise be accounted for using the equity method. For certain investments in the construction industry where the Company retains an undivided interest in assets and liabilities, the Company records its proportionate share of assets, liabilities, revenues and expenses. If an entity is determined to not be a VIE, the voting interest entity model will be applied. Further discussion of the Company's investments is included in "note 13 - investments in affiliates and joint ventures". b) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures reported in these consolidated financial statements and accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates and judgments made by management include: • the assessment of the percentage of completion on time-and-materials, unit-price, lump-sum and cost-plus contracts with defined scope (including estimated total costs and provisions for estimated losses) and the recognition of claims and change orders on revenue contracts; • the determination of whether an acquisition meets the definition of a business combination; • the fair value of the assets acquired and liabilities assumed as part of an acquisition; • the evaluation of whether the Company consolidates entities in which it has a controlling financial interest based on either a VIE or voting interest model; • assumptions used in impairment testing; and • estimates and assumptions used in the determination of the allowance for doubtful accounts, the recoverability of deferred tax assets and the useful lives of property, plant and equipment and intangible assets. The accuracy of the Company’s revenue and profit recognition in a given period is dependent on the accuracy of its estimates of the cost to complete for each project. Cost estimates for all significant projects use a detailed “bottom up” approach and the Company believes its experience allows it to provide reasonably dependable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability that are recognized in the period in which such adjustments are determined. The most significant of these include: • the completeness and accuracy of the original bid; • costs associated with added scope changes; • extended overhead due to owner, weather and other delays; • subcontractor performance issues; • changes in economic indices used for the determination of escalation or de-escalation for contractual rates on long-term contracts; • changes in productivity expectations; • site conditions that differ from those assumed in the original bid; • contract incentive and penalty provisions; • the availability and skill level of workers in the geographic location of the project; and • a change in the availability and proximity of equipment and materials. The foregoing factors as well as the mix of contracts at different margins may cause fluctuations in gross profit between periods. With many projects of varying levels of complexity and size in process at any given time, changes in estimates can offset each other without materially impacting the Company’s profitability. Major changes in cost estimates, particularly in larger, more complex projects, can have a significant effect on profitability. c) Revenue recognition The Company's revenue source falls into one of two categories: construction services or operations support. Construction services are related to mine development or expansion projects and are generally funded from customers' capital budgets. The Company provides construction services under lump-sum, unit-price, time-and materials and cost-plus contracts. When the commercial terms are lump-sum and unit-price, the contract scope and value is typically defined. Time-and-materials and cost-plus contracts are generally undefined in scope and total price. Operations support services revenue is mainly generated under long term site-services agreements with the customers (master service agreement and multiple use contracts). Such agreements typically do not include a commitment to the volume or scope of services over the life of the contract. Work under the agreement is instead awarded through shorter-term work authorizations under the general terms of the agreement. The Company generally provides operations support services under either time-and-materials or unit-price contracts depending on factors such as the degree of complexity, the completeness of engineering and the required schedule. Significant estimates are required in the revenue recognition process including assessment of the percentage of completion, identification of performance obligations, and estimation of variable consideration including the constraint. The Company’s invoicing frequency and payment terms are in accordance with negotiated customer contracts. Customer invoicing can range between daily and monthly and payment terms range between net 15 and net 60 days. The Company does not typically include extended payment terms in its contracts with customers. Under these payment terms, the customer pays progress payments based on actual work or milestones completed. When payment terms do not align with revenue recognition, the variance is recorded to either contract liabilities or contract assets, as appropriate. Customer contracts do not generally include a significant financing component because the Company does not expect the period between customer payment and transfer of control to exceed one year. The Company does not adjust consideration for the effects of a significant financing component if the period of time between the transfer of control and the customer payment is less than one year. The Company accounts for a contract when it has approval and commitments from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. Each contract is evaluated to determine if it includes more than one performance obligation. This evaluation requires significant judgement and the determination that the contract contains more than one performance obligation could change the amount of revenue and profit recorded in a given period. The majority of the Company's contracts with defined scope include a significant integration service, where the Company is responsible for ensuring the individual goods and services are incorporated into one combined output. Such contracts are accounted for as one performance obligation. When more than one distinct good or service is contracted, the contract is separated into more than one performance obligation and the total transaction price is allocated to each performance obligation based upon stand-alone selling prices. When a stand-alone selling price is not observable, it is estimated using a suitable method. The total transaction price can be comprised of fixed consideration and variable consideration, such as profit incentives, discounts and performance bonuses or penalties. When a contract includes variable consideration, the amount included in the total transaction price is based on the expected value or the mostly likely amount, constrained to an amount that it is probable a significant reversal will not occur. Significant judgement is involved in determining if a variable consideration amount should be constrained. In applying this constraint, the Company considers both the likelihood of a revenue reversal arising from an uncertain future event and the magnitude of the revenue reversal if the uncertain event were to occur or fail to occur. The following circumstances are considered to be possible indicators of significant revenue reversals: • The amount of consideration is highly susceptible to factors outside the Company’s influence, such as judgement of actions of third parties and weather conditions; • The length of time between the recognition of revenue and the expected resolution; • The Company’s experience with similar circumstances and similar customers, specifically when such items have predictive value; • The Company’s history of resolution and whether that resolution includes price concessions or changing payment terms; and • The range of possible consideration amounts. The Company's performance obligations are typically satisfied by transferring control over time, for which revenue is recognized using the percentage of completion method, measured by the ratio of costs incurred to date to estimated total costs. For defined scope contracts, the cost-to-cost method faithfully depicts the Company’s performance because the transfer of the asset to the customer occurs as costs are incurred. The costs of items that do not relate to the performance obligation, particularly in the early stages of the contract, are excluded from costs incurred to date. Pre-construction activities, such as mobilization and site setup, are recognized as contract costs on the consolidated balance sheets and amortized over the life of the project. These costs are excluded from the cost-to cost calculation. The Company has elected to apply the ‘as-invoiced’ practical expedient to recognize revenue in the amount to which the Company has a right to invoice for all contracts in which the value of the performance completed to date directly corresponds with the right to consideration. This will be applied to all contracts, where applicable, and the majority of undefined scope work is expected to use this practical expedient. The length of the Company’s contracts varies from less than one year for typical contracts to several years for certain larger contracts. Project costs include all direct labour, material, subcontract and equipment costs and those indirect costs related to contract performance such as indirect labour and supplies. General and administrative expenses are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in project performance, project conditions, and estimated profitability, including those arising from profit incentives, penalty provisions and final contract settlements, may result in revisions to costs and revenue that are recognized in the period in which such adjustments are determined. Once a project is underway, the Company will often experience changes in conditions, client requirements, specifications, designs, materials and work schedules. Generally, a “change order” will be negotiated with the customer to modify the original contract to approve both the scope and price of the change. Occasionally, disagreements arise regarding changes, their nature, measurement, timing and other characteristics that impact costs and revenue under the contract. When a change becomes a point of dispute between the Company and a customer, the Company will assess the legal enforceability of the change to determine if a contract modification exists. The Company considers a contract modification to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most contract modifications are for goods and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as part of the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. If a contract modification is approved in scope and not price, the associated revenue is treated as variable consideration, subject to constraint. This can lead to a situation where costs are recognized in one period and revenue is recognized when customer agreement is obtained or claim resolution occurs, which can be in subsequent periods. The Company’s long term contracts typically allow its customers to unilaterally reduce or eliminate the scope of the work as contracted without cause. These long term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Revenue is measured based on consideration specified in the customer contract, and excludes any amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specified revenue producing transaction, that are collected by the Company for a customer, are excluded from revenue. d) Balance sheet classifications A one-year time period is typically used as the basis for classifying current assets and liabilities. However, included in current assets and liabilities are amounts receivable and payable under construction contracts (principally holdbacks) that may extend beyond one year. e) Cash Cash includes cash on hand and bank balances net of outstanding cheques. f) Accounts receivable and contract assets Accounts receivable are recorded when the Company has an unconditional right to consideration arising from performance of contracts with customers. Accounts receivable may be comprised of amounts billed to customers and amounts that have been earned but have not yet been billed. Such unbilled but earned amounts generally arise when a billing period ends prior to the end of the reporting period. When this occurs, revenue equal to the earned and unbilled amount is accrued. Such accruals are classified as accounts receivable on the balance sheet, even though they are not yet billed, as they represent consideration for work that has been completed prior to the period end where the Company has an unconditional right to consideration. Contract assets include unbilled amounts representing revenue recognized from work performed where the Company does not yet have an unconditional right to compensation. These balances generally relate to (i) revenue accruals on forecasted jobs where the percentage of completion method of revenue recognition requires an accrual over what has been billed and (ii) revenue recognized from variable consideration related to unpriced contract modifications. g) Contract costs The Company occasionally incurs costs to obtain contracts (reimbursable bid costs) and to fulfill contracts (fulfillment costs). If these costs meet certain criteria, they are capitalized as contract costs, included within other assets on the consolidated balance sheets. Capitalized costs are amortized based on the transfer of goods or services to which the assets relate and are included in project costs. Reimbursable bid costs meet the criteria for capitalization when these costs will be reimbursed by the owner regardless of the outcome of the bid. Generally, this occurs when the Company has been selected as the preferred bidder for a project. The Company recognizes reimbursable bid costs as an expense when incurred if the amortization period of the asset that the entity would have otherwise recognized is one year or less. Costs to fulfill a contract meet the criteria for capitalization if they relate directly to a specifically identifiable contract, they generate or enhance resources that will be used to satisfy future performance obligations and if the costs are expected to be recovered. The costs that meet this criterion are often mobilization and site set-up costs. h) Remaining performance obligations Remaining performance obligation represents the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. The Company's long term contracts typically allow customers to unilaterally reduce or eliminate the scope of the contracted work without cause. These long term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Excluded from this disclosure are amounts where the Company recognizes revenue as-invoiced (note 19(e)) . i) Contract liabilities Contract liabilities consist of advance payments and billings in excess of costs incurred and estimated earnings on uncompleted contracts. j) Allowance for doubtful accounts The Company evaluates the probability of collection of accounts receivable and records an allowance for doubtful accounts, which reduces accounts receivable to the amount management reasonably believes will be collected. In determining the amount of the allowance, the following factors are considered: the length of time the receivable has been outstanding, specific knowledge of each customer’s financial condition and historical experience. k) Inventories Inventories are carried at the lower of cost and net realizable value, and consist primarily of spare tires, tracks, track frames, fuel and lubricants. Cost is determined using the weighted average method. l) Property, plant and equipment Property, plant and equipment are recorded at cost. The Company capitalizes interest incurred on debt during the construction of assets for the Company’s own use. The capitalization period covers the duration of the activities required to get the asset ready for its intended use, provided that expenditures for the asset have been made and interest cost incurred. Interest capitalization continues as long as those activities and the incurrence of interest cost continue. Equipment under capital lease is recorded at the present value of minimum lease payments at the inception of the lease. Major components of heavy construction equipment in use such as engines and drive trains are recorded separately. The capitalized interest is amortized at the same rate as the respective asset. Depreciation is not recorded until an asset is available for use. Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 3,000 - 120,000 hours Major component parts in use Units of production 3,000 - 50,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 5 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation The costs for periodic repairs and maintenance are expensed to the extent the expenditures serve only to restore the assets to their normal operating condition without enhancing their service potential or extending their useful lives. m) Intangible assets Acquired intangible assets with finite lives are recorded at historical cost net of accumulated amortization and accumulated impairment losses, if any. The cost of intangible assets acquired in an asset acquisition are recorded at cost based upon relative fair value as at the acquisition date. Costs incurred to increase the future benefit of intangible assets are capitalized. Intangible assets with definite lives are amortized over their estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer contracts Straight-line 1 - 2 years Favourable land lease Straight-line 27 years Assembled workforce Straight-line 5 years Partnership relationship Straight-line 5 years Brand Straight-line 5 years n) Impairment of long-lived assets Long-lived assets or asset groups held and used including property, plant and equipment and identifiable intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value, which is charged to depreciation or amortization expense. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of its long-lived assets, such as: applicable industry performance and prospects; general business and economic conditions that prevail and are expected to prevail; expected growth; maintaining its customer base; and, achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of long-lived assets. Furthermore, the process of determining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates. o) Assets held for sale Long-lived assets are classified as held for sale when certain criteria are met, which include: • management, having the authority to approve the action, commits to a plan to sell the assets; • the assets are available for immediate sale in their present condition; • an active program to locate buyers and other actions to sell the assets have been initiated; • the sale of the assets is probable and their transfer is expected to qualify for recognition as a completed sale within one year ; • the assets are being actively marketed at reasonable prices in relation to their fair value; and • it is unlikely that significant changes will be made to the plan to sell the assets or that the plan will be withdrawn. A long-lived asset that is newly acquired and will be sold rather than held and used is classified as held for sale if the one year requirement is met and if the other requirements are expected to be met within a short period following the asset acquisition. Assets to be disposed of by sale are reported at the lower of their carrying amount or estimated fair value less costs to sell and are disclosed separately on the Consolidated Balance Sheets. These assets are not depreciated. Equipment disposal decisions are made using an approach in which a target life is set for each type of equipment. The target life is based on the manufacturer’s recommendations and the Company’s past experience in the various operating environments. Once a piece of equipment reaches its target life it is evaluated to determine if disposal is warranted based on its expected operating cost and reliability in its current state. If the expected operating cost exceeds the target operating cost for the fleet or if the expected reliability is lower than the target reliability of the fleet, the unit is considered for disposal. Expected operating costs and reliability are based on the past history of the unit and experience in the various operating environments. Once the Company has determined that the equipment will be disposed, and the criteria for assets held for sale are met, the unit is recorded in assets held for sale at the lower of depreciated cost or net realizable value. p) Asset retirement obligations Asset retirement obligations are legal obligations associated with the retirement of property, plant and equipment that result from their acquisition, lease, construction, development or normal operations. The Company recognizes its contractual obligations for the retirement of certain tangible long-lived assets. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of a liability for an asset retirement obligation is the amount at which that liability could be settled in a current transaction between willing parties. In the absence of observable market transactions, the fair value of the liability is determined as the present value of expected cash flows. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and then amortized using a systematic and rational method over its estimated useful life. In subsequent reporting periods, the liability is adjusted for the passage of time through an accretion charge and any changes in the amount or timing of the underlying future cash flows are recognized as an additional asset retirement cost. q) Foreign currency translation The functional currency of the Company and its subsidiaries is Canadian Dollars. Transactions denominated in foreign currencies are recorded at the rate of exchange on the transaction date. Monetary assets and liabilities, denominated in foreign currencies, are translated into Canadian Dollars at the rate of exchange prevailing at the balance sheet date. Foreign exchange gains and losses are included in the determination of earnings. r) Fair value measurement Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. s) Income taxes The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period of enactment. A valuation allowance is recorded against any deferred tax asset if it is more likely than not that the asset will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not (greater than 50% ) of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. The Company accrues interest and penalties for uncertain tax positions in the period in which these uncertainties are identified. Interest and penalties are included in “General and administrative expenses” in the Consolidated Statements of Operations. t) Stock-based compensation The Company has a Share Option Plan which is described in note 22 (b). The Company accounts for all stock-based compensation payments that are settled by the issuance of equity instruments at fair value. Compensation cost is measured using the Black-Scholes model at the grant date and is expensed on a straight-line basis over the award’s vesting period, with a corresponding increase to additional paid-in capital. Upon exercise of a stock option, share capital is recorded at the sum of proceeds received and the related amount of additional paid-in capital. The Company has a Restricted Share Unit (“RSU”) Plan which is described in note 22 (c). RSUs are generally granted effective July 1 of each fiscal year with respect to services to be provided in that fiscal year and the following two fiscal years. The RSUs generally vest at the end of the three -year term. The Company settles RSUs with common shares purchased on the open market through a trust arrangement. Compensation expense is calculated based on the number of vested RSUs multiplied by the fair value of each RSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value was to be determined. The Company recognizes compensation cost over the three -year term in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. When dividends are paid on common shares, additional dividend equivalent RSUs are granted to all RSU holders as of the dividend payment date. The number of additional RSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding RSUs, divided by the fair market value of the Company's common shares on the dividend payment date. |
Accounting pronouncements recen
Accounting pronouncements recently adopted | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting pronouncements recently adopted | Accounting pronouncements recently adopted a) Revenue from contracts with customers The Company adopted Topic 606, Revenue from Contracts with Customers, with a date of initial application of January 1, 2018. The Company used the modified cumulative effect retrospective transition method by recognizing the cumulative effect as an adjustment to the opening balance of equity at January 1, 2018. The Company applied Topic 606 to contracts that were not completed at the time of transition and elected to not separately evaluate the effects of each contract modification prior to the date of adoption. Therefore, comparative financial information has not been adjusted and continues to be reported under the prior standard. The main impact of the application of this new standard reflected through the adjustment to the opening balance of equity at January 1, 2018 relates to the change in the treatment of mobilization costs which were previously considered a component of the contract. Mobilization costs are now considered a cost to fulfill the contract and not part of the performance obligation. This resulted in a reversal in the amount of cumulative revenue recognized, which was offset by associated amortization expense. The net impact to opening deficit as at January 1, 2018 is $45 . Other adjustments include a reclassification of unconditional rights to consideration between contract assets and accounts receivable due to a change in presentation requirements for contract balances. The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated balance sheets at December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets Accounts receivable, net (notes 6 and 19(c)) $ 82,399 $ (9,809 ) $ 72,590 Contract assets (note 19(c)) 10,673 (10,673 ) — Unbilled revenue — 22,421 22,421 130,379 1,939 132,318 Other assets (note 10) 10,204 (1,636 ) 8,568 Investments in affiliates and joint ventures (note 13(a)) 11,788 168 11,956 $ 689,800 $ 471 $ 690,271 Liabilities and Shareholders' Equity Current liabilities Contract liabilities $ 4,032 $ (4,032 ) $ — Billings in excess of costs incurred and estimated earnings on uncompleted contracts — 4,032 4,032 148,895 — 148,895 Deferred tax liabilities (note 11) 44,787 127 44,914 $ 539,585 $ 127 $ 539,712 Shareholders' Equity Deficit (113,917 ) 344 (113,573 ) $ 149,721 $ 344 $ 150,065 Total Liabilities and Equity $ 689,800 $ 471 $ 690,271 Amounts previously classified as unbilled revenue and billings in excess of costs incurred and estimated earnings on uncompleted contracts are now classified as contract assets and contract liabilities, respectively. For consistency, these new classifications have been applied to amounts in comparative prior periods on the consolidated balance sheets and within the notes that follow. The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated statements of operations and comprehensive income for the year ended December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Revenue (note 19) $ 410,061 $ 1,940 $ 412,001 Project costs 152,943 1,637 154,580 Gross profit $ 69,076 $ 303 $ 69,379 Operating income before the undernoted $ 29,980 $ 303 $ 30,283 Equity earnings in affiliates and joint ventures (note 13(a)) (60 ) (168 ) (228 ) Income before income taxes $ 21,417 $ 471 $ 21,888 Deferred income tax expense (note 11) 6,096 127 6,223 Net income and comprehensive income $ 15,321 $ 344 $ 15,665 The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated statements of cash flows for the year ended December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Cash provided by (used in): Operating activities: Net income and comprehensive income $ 15,321 $ 344 $ 15,665 Deferred income tax expense (note 11) 6,096 127 6,223 Net changes in non-cash working capital (note 23(b)) 14,178 (471 ) 13,707 109,371 — 109,371 Decrease in cash $ 11,322 $ — $ 11,322 b) Statement of cash flows In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-15, Statement of Cash Flows (Topic 230: Classification of Certain Cash Receipts and Cash Payments). This accounting standard eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayments or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. This standard was adopted January 1, 2018 and the adoption did not have a material effect on the Company's consolidated financial statements. c) Stock-based compensation In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718: Scope of Modification Accounting). This accounting standard update clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This standard was adopted January 1, 2018 and the adoption did not have a material effect on the Company's consolidated financial statements. d) Definition of a business In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805). This accounting standard update clarifies the definition of a business and provides a screening test to determine when an integrated set of assets and activities is not considered a business and, thus, is accounted for as an asset acquisition as opposed to a business combination. The screening test requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not considered a business. This standard was adopted during the year ended December 31, 2018. As discussed in note 5 , the Company’s two acquisitions were both determined to be asset acquisitions. |
Recent accounting pronouncement
Recent accounting pronouncements not yet adopted | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted a) Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), and subsequently issued several related ASUs to supersede the current leases accounting standard (Topic 840). The main difference between the new standard and the current standard is the requirement that lessees recognize a lease liability and a right-of-use asset for leases classified as operating leases. Lessor accounting remains largely unchanged. Additionally, the standard requires that for a sale to occur in a sale-leaseback transaction, the transfer of assets must meet the requirements for a sale under the new revenue standard. The new lease standard will be effective for the Company for interim and annual reporting periods commencing January 1, 2019, with early adoption permitted. The standard requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new standard will result in recognition of right-of-use assets and liabilities on the consolidated balance sheets. The Company continues to evaluate the impact of adopting the standard on its financial statements and disclosure through its change management plan which guides the adoption of the standard. The Company has compiled an inventory of all leases and has analyzed individual contracts or groups of contracts to identify any significant differences and the impact on lease transactions as a result of adopting the new standard. Through this process, the Company is quantifying the impact on transactions as well as assess the Company’s policies, practices, procedures, controls, and systems for changes necessary to process and compile the information to meet the requirements of the new standard. b) Fair value measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This accounting standard update was issued to improve the effectiveness of disclosure requirements on fair value measurement. This standard is effective January 1, 2020 with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. c) Internal-use software In August 2018, the FASB issued ASU 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. This accounting standard update was issued to clarify the accounting for implementation costs in cloud computing arrangements. This standard is effective January 1, 2020 with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. d) Related party guidance for variable interest entities In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities. This accounting standard update was issued to provide an update for determining whether a decision-making fee is a variable interest requiring reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety. This standard is effective January 1, 2020. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. e) Collaborative arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808), Clarifying the Interaction between Topic 808 and Topic 606. This accounting standard update was issued to clarify which transactions should be accounted for as revenue under Topic 606, and additional guidance added to Topic 808 to further align with Topic 606. This standard is effective January 1, 2020. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions a) Investments in affiliates and joint ventures On November 1, 2018, the Company acquired the outstanding shares of a privately held entity with ownership interests in a group of civil construction and mining entities based in Edmonton, Alberta (collectively referred to as “Nuna”) for cash consideration of $41.5 million plus acquisition costs of $1.3 million . Nuna includes the following interests in Canadian corporations and partnerships: • Nuna East Ltd. (37.25%) • Nuna West Mining Ltd. (49%) • Nuna Pang Contracting Ltd. (37.25%) • Nuna Logistics Partnership (49%) ("NL Partnership") The NL Partnership also holds investments in various other joint ventures and Canadian corporations. The majority of Nuna's operations occur within NL Partnership, in which the Company acquired a 49% ownership interest. The majority 51% ownership interest in NL Partnership is held by the Kitikmeot Corporation, a wholly-owned business entity of the Kitikmeot Inuit Association. The Company accounted for the transaction as an asset acquisition. As such, the assets acquired were recognized at cost based on their relative fair values. The Company determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, including but not limited to information supplied by the vendor, discounted cash flows, quoted market prices and estimates made by management. The Company accounted for the transaction as an asset acquisition. The purchase price at the date of acquisition is allocated to net assets acquired as follows: Assets Cash $ 10,939 Accounts receivable, net 13,234 Contract assets 3,089 Inventories 3,926 Prepaid expenses and deposits 304 31,492 Property, plant and equipment 15,962 Other assets 1,375 Investment in affiliates and joint ventures 11,728 Total Assets 60,557 Liabilities Accounts payable 10,604 Accrued liabilities 1,136 Contract liabilities 360 12,100 Long term debt (including current portion) 3,127 Capital lease obligation (including current portion) 542 Deferred tax liabilities 1,938 Total Liabilities 17,707 Net assets acquired $ 42,850 b) Heavy construction fleet and related assets On November 23, 2018, the Company acquired a heavy construction equipment fleet and related assets for $198.0 million from a vendor. The transaction involved the purchase of the vendor’s fleet of heavy earth-moving assets, together with support equipment, maintenance facilities, land and the vendor's interest in assigned contracts. The purchase was fully financed at closing through an increased and extended credit facility with the Company's existing lenders, led by National Bank Financial Inc. Under the asset purchase agreement, the final purchase price is subject to closing adjustments, including a price adjustment tied to the final net book value of the purchased assets. The purchase agreement included an initial cash payment upon closing of $150.8 million and the assumption of $12.6 million in capital leases and equipment-related promissory notes from the seller. The unpaid balance of the purchase price has been recorded at fair value within promissory notes and will be paid in three installments, six, twelve and eighteen months from the closing date. The installments will be accreted using the effective interest method. Any adjustments to the final purchase price will be undertaken in accordance with the terms of the purchase sale agreement. The Company accounted for the transaction as an asset acquisition. As such, the assets acquired were recognized at cost based on their relative fair values. The Company determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, including but not limited to information supplied by the vendor, discounted cash flows, quoted market prices and estimates made by management. The purchase price was primarily allocated to heavy equipment, land and building and inventory. Intangible assets were recognized with respect to favorable interest rates on the capital leases and promissory notes assumed, as well as an interest in the Mikisew North American Limited Partnership (“MNALP”). Transaction costs of $0.4 million associated with the acquisition were capitalized. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable December 31, 2018 December 31, 2017 Trade $ 67,913 $ 45,158 Holdbacks 558 558 Accrued trade receivables 9,807 — Contract receivables (note 19(c)) $ 78,278 $ 45,716 Other 4,121 1,090 $ 82,399 $ 46,806 Holdbacks represent amounts up to 10% of the contract value under certain contracts that the customer is contractually entitled to withhold until completion of the project or until certain project milestones are achieved. |
Prepaid expenses and deposits
Prepaid expenses and deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and deposits | Prepaid expenses and deposits December 31, 2018 December 31, 2017 Prepaid insurance and deposits $ 1,149 $ 844 Prepaid interest payments 826 85 Current portion of prepaid lease payments 1,761 969 $ 3,736 $ 1,898 The long term portion of prepaid lease payments is recorded in other assets (note 10(a)) . |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Assets held for sale | Assets held for sale At December 31, 2018 , the Company classified $672 of property, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheets (2017 - $5,642 ). During the year ended December 31, 2018 , impairment of assets held for sale amounting to $1,734 has been included in depreciation expense in the Consolidated Statements of Operations ( 2017 – $1,621 ). The write-down is the amount by which the carrying value of the related assets exceeded their fair value less costs to sell. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment December 31, 2018 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 346,071 $ 78,296 $ 267,775 Major component parts in use 143,032 66,019 77,013 Other equipment 33,824 21,711 12,113 Licensed motor vehicles 19,745 15,618 4,127 Office and computer equipment 8,972 6,450 2,522 Land 11,095 — 11,095 Buildings 31,425 6,265 25,160 Leasehold improvements 2,875 1,053 1,822 597,039 195,412 401,627 Assets under capital lease Heavy equipment 110,759 35,376 75,383 Major component parts in use 64,602 16,964 47,638 Other equipment 772 17 755 Licensed motor vehicles 3,822 1,087 2,735 Office and computer equipment 23 23 — Buildings 25 6 19 180,003 53,473 126,530 Total property, plant and equipment $ 777,042 $ 248,885 $ 528,157 December 31, 2017 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 196,045 $ 77,726 $ 118,319 Major component parts in use 72,448 45,694 26,754 Other equipment 31,923 18,400 13,523 Licensed motor vehicles 18,298 14,888 3,410 Office and computer equipment 10,157 9,468 689 Land 7,168 — 7,168 Buildings 2,547 2,482 65 338,586 168,658 169,928 Assets under capital lease Heavy equipment 69,657 28,613 41,044 Major component parts in use 85,015 21,247 63,768 Other equipment 558 543 15 Licensed motor vehicles 5,129 1,242 3,887 Office and computer equipment 23 17 6 160,382 51,662 108,720 Total property, plant and equipment $ 498,968 $ 220,320 $ 278,648 During the year ended December 31, 2018 , additions to property, plant and equipment by means of capital leases were $21,904 ( 2017 - $14,033 ). During the year ended December 31, 2018 , the Company completed sale-leaseback transactions of $29,295 ( 2017 - $20,697 ). Deferred gains on sale-leaseback transactions are included in other long term obligations and are amortized over the expected life of the equipment (note 17(d)) . Depreciation of equipment under capital lease of $25,995 ( 2017 – $19,483 ) was included in depreciation expense in the current year. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Other assets a) Other assets are as follows: December 31, 2018 December 31, 2017 Long term prepaid lease payments $ 1,853 $ 1,779 Other long term receivable 619 — Intangible assets (note 10(b)) 2,916 938 Deferred financing costs (note 10(c)) 1,178 707 Deferred lease inducement asset (note 10(d)) 641 784 Loan to DNSS Partnership (note 13(b)) 689 969 Contract costs (note 19(f)) 2,308 422 $ 10,204 $ 5,599 b) Intangible assets December 31, 2018 Cost Accumulated amortization Net book value Internal-use software $ 11,925 $ 11,019 $ 906 Other intangible assets 2,010 — 2,010 $ 13,935 $ 11,019 $ 2,916 December 31, 2017 Cost Accumulated amortization Net book value Internal-use software $ 18,188 $ 17,250 $ 938 During the year ended December 31, 2018, fully amortized internal-use software with a cost of $6,643 was disposed. Amortization of intangible assets for the year ended December 31, 2018 was $412 ( 2017 – $918 ). The estimated amortization expense for future years is as follows: For the year ending December 31, 2019 $ 734 2020 664 2021 470 2022 439 2023 and thereafter 609 $ 2,916 c) Deferred financing costs December 31, 2018 December 31, 2017 Cost $ 1,575 $ 821 Accumulated amortization 397 114 $ 1,178 $ 707 During the year ended December 31, 2018 , financing fees of $754 ( 2017 - $840 ) were incurred in connection with the revolving facilities under the credit facilities (note 14(b)) . These fees are being amortized ratably over the term of the credit facilities. Amortization of these deferred financing costs included in interest expense for the year ended December 31, 2018 was $283 ( 2017 – $453 ) (note 21) . d) Deferred lease inducements asset December 31, 2018 December 31, 2017 Balance, beginning of year $ 784 $ 927 Amortization (143 ) (143 ) Balance, end of year $ 641 $ 784 Lease inducements applicable to lease contracts are deferred and amortized as an increase in general and administrative expenses on a straight-line basis over the lease term, which includes the initial lease term and renewal periods only where renewal is determined to be reasonably assured. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income tax provision differs from the amount that would be computed by applying the Federal and Provincial statutory income tax rates to income before income taxes. The reasons for the differences are as follows: Year ended December 31, 2018 2017 Income before income taxes $ 21,417 $ 6,468 Tax rate 27.00 % 27.00 % Expected expense $ 5,783 $ 1,746 (Decrease) increase related to: Income tax adjustments and reassessments — 30 Non taxable portion of capital gains (60 ) (672 ) Stock-based compensation 26 88 Other 347 12 Deferred income tax expense $ 6,096 $ 1,204 The deferred tax assets and liabilities are summarized below: December 31, 2018 December 31, 2017 Deferred tax assets: Non-capital and net capital loss carryforwards $ 24,478 $ 18,619 Deferred financing costs — 52 Contract liabilities 572 222 Capital lease obligations 23,207 17,961 Stock-based compensation 3,545 2,985 Other 2,538 2,357 Subtotal $ 54,340 $ 42,196 Less: valuation allowance (1,035 ) (1,035 ) $ 53,305 $ 41,161 Deferred tax liabilities: Contract assets $ 3,711 $ 5,231 Assets held for sale 116 1,523 Accounts receivable – holdbacks 96 72 Property, plant and equipment 84,811 61,953 Deferred financing costs 86 — $ 88,820 $ 68,779 Net deferred income tax liability $ 35,515 $ 27,618 Classified as: December 31, 2018 December 31, 2017 Deferred tax asset $ 9,272 $ 10,539 Deferred tax liability (44,787 ) (38,157 ) $ (35,515 ) $ (27,618 ) In 2018 and 2017, the Company and its subsidiaries file income tax returns in the Canadian federal jurisdiction and one provincial jurisdiction. At December 31, 2018 , the Company has a deferred tax asset of $ 23,443 resulting from non-capital loss carryforwards of $86,826 , which expire as follows: December 31, 2018 2025 $ 2 2026 151 2027 128 2031 605 2032 6,409 2033 5,893 2034 5,200 2036 2,207 2037 17,922 2038 48,309 $ 86,826 At December 31, 2018 , the Company has recorded a full valuation allowance against the deferred tax asset of $1,035 resulting from net capital loss carryforwards of $ 7,664 , which have an indefinite life. |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued liabilities | Accrued liabilities December 31, 2018 December 31, 2017 Accrued interest payable $ 972 $ 714 Payroll liabilities 15,360 8,828 Liabilities related to equipment leases 423 219 Dividends payable (note 18(d)) 500 510 Income and other taxes payable 1,749 2,007 Liabilities related to tire disposal 153 156 $ 19,157 $ 12,434 |
Investments in affiliates and j
Investments in affiliates and joint ventures | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investments in affiliates and joint ventures | a) Nuna The Company accounts for the NL Partnership (including its wholly-owned subsidiaries) using proportionate consolidation and accounts for Nuna East Ltd., Nuna West Mining Ltd. and Nuna Pang Contracting Ltd. using the equity method. The NL Partnership holds investments in various affiliates and joint ventures. These entities were formed to perform heavy construction and mining services. The NL Partnership’s involvement with these entities consists of the following activities: assisting in the formation and financing of the entity; providing recourse and/or liquidity support; servicing the assets; providing managerial and administrative services; and receiving fees for services provided. Certain of these entities meet the definition of VIEs. The NL Partnership has consolidated the results of the VIEs in which it is determined to be the primary beneficiary with the recognition of noncontrolling interest, if any, representing amounts attributable to other equity-holders. When the NL Partnership is not considered to be the primary beneficiary of a VIE, it accounts for the investment using either the equity method or proportionate consolidation. When an entity does not meet the definition of a VIE, the voting interest model is applied and it is accounted for using either the equity method or proportionate consolidation. The following table summarizes the investments of the NL Partnership, including the NL Partnership’s ownership interest therein: NL Partnership Interest Equity method investments: Kivalliq Services Ltd. (i) 33.33 % HRN Contracting Ltd. (ii) 33.33 % Proportionately consolidated investments: Amik Nuna Forestry Services 50.00 % Aroland Nuna 49.00 % Fond Du Lac Nuna 49.00 % Mahiikanuk Nuna 49.00 % Met Nuna 75.00 % Nuna Bauer 50.00 % EDC Nuna Contracting 70.00 % Attawapiskat Nuna 75.00 % Westarc Drilling & Blasting Joint Venture (iii) 30.00 % Consolidated investments: Deton Cho Nuna 60.00 % Nuna Deton Cho Winter Road Services 75.00 % Nuna Deton Cho Contracting 100.00 % (i) Includes investment in MTKSL Contracting Joint Venture (ii) Includes investment in TDIC/HRN Contracting Joint Venture (iii) Includes investment in Westarc Drilling & Blasting Services Ltd. The following table summarizes the movement in the investments in affiliates and joint ventures balance during the year: December 31, 2018 December 31, 2017 Balance, beginning of the year $ — $ — Additions arising on acquisition 11,728 — Share of net income 60 — Balance, end of the year $ 11,788 $ — The financial information for the investments in affiliates and joint ventures accounted for using the equity method is summarized as follows: Balance Sheets December 31, December 31, Assets Current assets $ 9,769 $ — Non-current assets 2,392 — Total assets $ 12,161 $ — Liabilities Current liabilities $ 4,013 $ — Non-current liabilities 3,032 — Total liabilities $ 7,045 $ — Statement of Operations and Comprehensive Income Year ended December 31, 2018 2017 Revenues $ 1,771 $ — Gross profit 152 — Income before taxes 98 — Net income and comprehensive income $ 60 $ — b) Dene North Site Services Partnership ("DNSS Partnership") The Company holds a 49% interest in DNSS Partnership, which is an unincorporated partnership that was formed to perform work care, maintenance work, remedial improvements and demolition over the reclamation of a mine site. It is considered a VIE due to insufficient equity to finance activities without subordinated financial support. The Company determined that it does not meet the definition of the primary beneficiary because it does not have the exclusive right to direct the activities that most significantly impact DNSS Partnership's economic performance. The Company accounts for its interest in DNSS Partnership using proportionate consolidation. c) Mikisew North American Limited Partnership (“MNALP”) The Company holds a 49% interest in the MNALP's, which is an unincorporated partnership that was formed to perform heavy construction and mining services. It is considered a VIE due to insufficient equity to finance activities without subordinated financial support. The Company determined that it does not meet the definition of the primary beneficiary because it does not have the exclusive right to direct the activities that most significantly impact the MNALP's economic performance. The Company accounts for its interest in the MNALP's using proportionate consolidation. |
Long term debt
Long term debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long term debt | Long term debt a) Long term debt amounts are as follows: Current: December 31, 2018 December 31, 2017 Credit facilities (note 14(b)) $ 1,167 $ — Mortgage (note 14(d)) 386 — Promissory notes 28,443 — $ 29,996 $ — Long term: December 31, 2018 December 31, 2017 Credit facilities (note 14(b)) $ 193,751 $ 32,000 Convertible Debentures (note 14(c)) 39,976 40,000 Mortgage (note 14(d)) 19,514 — Promissory notes 14,494 — Less: deferred financing costs (note 14(e)) (1,773 ) (1,935 ) $ 265,962 $ 70,065 The aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2018 are: $29.2 million in 2019, $14.6 million in 2020, $0.5 million in 2021, $0.5 million in 2022 and $0.5 million in 2023. b) Credit facilities i) Company Credit Facility December 31, 2018 December 31, 2017 Current portion of Credit Facility $ — $ — Long term portion of Credit Facility 192,000 32,000 $ 192,000 $ 32,000 On August 1, 2017, the Company entered into the Credit Facility Agreement (the "Previous Credit Facility") with a banking syndicate led by National Bank Financial Inc. The Previous Credit Facility was comprised solely of a revolving loan (the “Previous Credit Facility Revolver”) which allowed borrowing of up to $140.0 million , of which letters of credit could not exceed $25.0 million with an ability to increase the maximum borrowings by an additional $25.0 million , subject to certain conditions. The Previous Credit Facility permitted additional capital lease obligation to a limit of $100.0 million . On November 23, 2018, the Company entered into an Amended and Restated Credit Agreement (the "Credit Facility") with a banking syndicate led by National Bank Financial Inc. The Credit Facility is comprised solely of a revolving loan (the "Revolver") which allows increased borrowings of up to $300.0 million , of which letters of credit may not exceed $25.0 million with an ability to increase the maximum borrowings by an additional $50.0 million , subject to certain conditions. This facility matures on November 23, 2021, with an option to extend on an annual basis. The Credit Facility increased the permitted capital lease obligation to a limit of $150.0 million . The Credit Facility increased permitted other debt outstanding to a limit of $20.0 million . As at December 31, 2018 , there was $0.9 million ( December 31, 2017 - $0.8 million ) in issued letters of credit under the Credit Facility and the unused borrowing availability was $107.1 million ( December 31, 2017 - $107.2 million ). The Credit Facility has two financial covenants that must be tested quarterly on a trailing four quarter basis. • The first covenant is the senior leverage ratio ("Senior Leverage Ratio") which is Senior Debt compared to Bank EBITDA less NACG Acheson Ltd. rental revenue of $1.8 million (prorated in 2018). ◦ "Senior Debt" is defined as long term debt, capital leases and outstanding letters of credit, excluding Convertible Debentures, deferred financing costs and the mortgage related to NACG Acheson Ltd. The BDC mortgage and security are structured as permitted exclusions from the security interests of the syndicate Lenders and the Senior Debt as defined in the Credit Facility. ◦ "Bank EBITDA" is defined as earnings before interest, taxes, depreciation, and amortization, excluding the effects of unrealized foreign exchange gain or loss, realized and unrealized gain or loss on derivative financial instruments, cash and non-cash stock-based compensation expense, gain or loss on disposal of property, plant and equipment, gain or loss on disposal of assets held for sale and certain other non-cash items included in the calculation of net income. The Senior Leverage Ratio under the Credit Facility is to be maintained at less than or equal to 4.0 :1 with a step down to less than or equal to 3:50:1 at Q3 2019, and less than or equal to 3.0 :1 at Q4 2019 and thereafter. In the event the Company enters into a material acquisition, the maximum allowable Senior Leverage Ratio would include a step up of 0.50 x for four quarters following the acquisition once the covenant reverts to 3.0 :1 at Q4 2019. Under the Previous Credit Facility, the Senior Leverage Ratio was to be maintained at less than or equal to 3.0 :1. • The second covenant is the fixed charge coverage ratio ("Fixed Charge Coverage Ratio") which is defined as Bank EBITDA less cash taxes compared to Fixed Charges. ◦ "Fixed Charges" is defined as cash interest, scheduled payments on debt, unfunded cash distributions by the Company and unfunded capital expenditures. The Credit Facility amendment resulted in an amendment to the Fixed Charge Coverage Ratio Calculation to exclude the initial November 23, 2018 fleet purchase and associated capital expenditures until the end of Q1 2019 from the calculation of fixed charges. The Fixed Charge Coverage Ratio is to be maintained at a ratio greater than 1.15 :1. Under the Previous Credit Facility, the Fixed Charge Coverage Ratio is to be maintained at a ratio greater than 1.15 :1. As at December 31, 2018 , the Company was in compliance with its financial covenants. The Credit Facility bears interest at Canadian prime rate, U.S. Dollar Base Rate, Canadian bankers’ acceptance rate or London interbank offered rate ("LIBOR") (all such terms as used or defined in the Credit Facility), plus applicable margins. The Company is also subject to non-refundable standby fees, 0.35% to 0.70% depending on the Company's Total Debt / Bank EBITDA Ratio. Total debt ("Total Debt") is defined in the Credit Facility as long term debt including capital leases and letters of credit, excluding Convertible Debentures, deferred financing costs, the mortgage related to NACG Acheson Ltd., and other non-recourse debt. The Credit Facility includes improved pricing and is secured by a first priority lien on all of the Company's existing and after-acquired property. ii) Affiliate and joint venture credit facilities: December 31, 2018 December 31, 2017 Current portion of Nuna Credit Facility $ 1,167 $ — Long term portion of Nuna Credit Facility 1,751 — $ 2,918 $ — On December 8, 2018, Nuna renewed a previously existing Facility and Security Agreement with ATB Financial ("the Nuna Credit Facility") with the following instruments: • The first instrument is an operating loan facility which allows borrowings of up to $5.0 million and bears interest at Canadian prime rate, plus applicable margins. The loan is secured by a lien on all of the Nuna existing and after-acquired property. As at December 31, 2018 , the unused borrowing availability was $5.0 million . • The second instrument is a non-revolving reducing loan facility which allows borrowings of up to $3.1 million , which is used to finance equipment. The facility bears interest at Canadian prime rate, plus applicable margins. The loan is secured by a lien on all of Nuna's existing and after-acquired property. • The third instrument is an equipment financing facility which allows borrowings of up to $5.5 million . The maximum loan amount is available in one or multiple financing schedules with a maximum financing term of 60 months. As at December 31, 2018 , there was $2.9 million in loans outstanding (at a 100% basis). The Nuna Credit Facilities have three financial covenants that must be tested. As of December 31, 2018, Nuna was in compliance with its covenants. c) Convertible Debentures On March 15, 2017, the Company issued $40.0 million in aggregate principal amount of 5.50% convertible unsecured subordinated debentures (the "Convertible Debentures") which mature on March 31, 2024. The Company pays interest at an annual rate of 5.50% , payable semi-annually on March 31 and September 30. The Convertible Debentures may be converted into common shares of the Company at the option of the holder at a conversion price of $10.85 per common share, which is equivalent to approximately 92.1659 common shares per $1,000 principal amount of notes. The Convertible Debentures are redeemable at the option of the Company, in whole or in part, at any time on or after March 31, 2020 at a redemption price equal to the principal amount, plus accrued and unpaid interest accrued to the redemption date, provided that the market price of the common shares is at least 125% of the conversion price; and on or after March 31, 2022 at a redemption price equal to the principal amount, plus accrued and unpaid interest accrued to the redemption date. The Convertible Debentures are not redeemable prior to March 31, 2020, except under certain conditions after a change in control has occurred. If a change in control occurs, the Company is required to offer to purchase all of the Convertible Debentures at a price equal to 101% of the principal amount plus accrued and unpaid interest to the date of purchase. d) Mortgage In November 2018, the Company entered into a 25 -year mortgage with the Business Development Bank of Canada ("BDC") for $19.9 million . The mortgage bears interest for the first five years at a fixed rate of 4.80% and has an expiration date of January 2044. The mortgage is secured by a first security interest in the Company's equipment maintenance and rebuild facility with attached head office in Acheson, Alberta. e) Deferred financing costs December 31, 2018 December 31, 2017 Cost $ 2,227 $ 2,133 Accumulated amortization 454 198 $ 1,773 $ 1,935 During the year ended December 31, 2018 , financing fees of $94 were incurred in connection with obtaining the mortgage. These fees are being amortized using the effective interest method over the term to maturity. Amortization of these deferred financing costs included in interest expense for the year ended December 31, 2018 was $256 ( 2017 – $344 ) (note 21) . |
Capital lease obligations
Capital lease obligations | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Capital lease obligations | Capital lease obligations The minimum lease payments due in each of the next five fiscal years are as follows: 2019 $ 33,886 2020 23,843 2021 15,115 2022 11,621 2023 6,308 Subtotal: $ 90,773 Less: amount representing interest (at rates ranging from 2.48% to 7.51%) (4,205 ) Carrying amount of minimum lease payments $ 86,568 Less: current portion (32,250 ) Long term portion $ 54,318 |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments and risk management | Financial instruments and risk management a) Fair value measurements In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing on each reporting date. Standard market conventions and techniques, such as discounted cash flow analysis and option pricing models are used to determine the fair value of the Company’s financial instruments. All methods of fair value measurement result in a general approximation of value and such value may never actually be realized. The fair values of the Company’s cash, accounts receivable, contract assets, loan to DNSS Partnership, accounts payable, accrued liabilities and contract liabilities approximate their carrying amounts due to the relatively short periods to maturity for the instruments. Financial instruments with carrying amounts that differ from their fair values are as follows: December 31, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Fair Carrying Fair Capital lease obligations Level 2 $ 86,568 $ 78,373 $ 66,969 $ 61,872 Convertible Debentures Level 2 39,976 48,371 40,000 38,700 Credit facilities Level 3 194,918 194,918 32,000 32,000 Mortgage Level 2 19,900 19,900 — — Promissory notes Level 2 42,937 42,937 — — Non-financial assets measured at estimated fair market value on a non-recurring basis as at December 31, 2018 and 2017 in the financial statements are summarized below: December 31, 2018 December 31, 2017 Change in Fair Value Carrying Amount Change in Fair Value Carrying Amount Assets held for sale $ (1,278 ) $ 672 $ (72 ) $ 5,642 Assets held for sale are reported at the lower of their carrying amount or estimated fair value less cost to sell. The change in fair value includes the writedown related to the carrying amount as at December 31, 2018 . The estimated fair market value less cost to sell of equipment assets held for sale (note 8) is determined internally by analyzing recent auction prices for equipment with similar specifications and hours used, the residual value of the asset and the useful life of the asset. The estimated fair market value of the equipment assets held for sale are classified under Level 3 of the fair value hierarchy. b) Risk management The Company is exposed to market and credit risks associated with its financial instruments. The Company will from time to time use various financial instruments to reduce market risk exposures from changes in foreign currency exchange rates and interest rates. Overall, the Company’s Board of Directors has responsibility for oversight of the Company’s risk management policies. Management performs a risk assessment on a continual basis to help ensure that all significant risks related to the Company and its operations have been reviewed and assessed to reflect changes in market conditions and the Company’s operating activities. c) Market risk Market risk is the risk that the future revenue or operating expense related cash flows, the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices such as foreign currency exchange rates and interest rates. The level of market risk to which the Company is exposed at any point in time varies depending on market conditions, expectations of future price or market rate movements and composition of the Company’s financial assets and liabilities held, non-trading physical assets and contract portfolios. To manage the exposure related to changes in market risk, the Company has used various risk management techniques. Such instruments may be used to establish a fixed price for a commodity, an interest bearing obligation or a cash flow denominated in a foreign currency. The sensitivities provided below are hypothetical and should not be considered to be predictive of future performance or indicative of earnings on these contracts. i) Foreign exchange risk The Company regularly transacts in foreign currencies when purchasing equipment and spare parts as well as certain general and administrative goods and services. These exposures are generally of a short-term nature and the impact of changes in exchange rates has not been significant in the past. The Company may fix its exposure in either the Canadian Dollar or the US Dollar for these short term transactions, if material. ii) Interest rate risk The Company is exposed to interest rate risk from the possibility that changes in interest rates will affect future cash flows or the fair values of its financial instruments. Interest expense on borrowings with floating interest rates, including the Company’s Credit Facility, varies as market interest rates change. At December 31, 2018 , the Company held $194.9 million of floating rate debt pertaining to its credit facilities ( December 31, 2017 – $32.0 million ). As at December 31, 2018 , holding all other variables constant, a 100 basis point change to interest rates on floating rate debt will result in $1.9 million corresponding change in annual interest expense. This assumes that the amount of floating rate debt remains unchanged from that which was held at December 31, 2018 . The fair value of financial instruments with fixed interest rates fluctuate with changes in market interest rates. However, these fluctuations do not affect earnings, as the Company’s debt is carried at amortized cost and the carrying value does not change as interest rates change. The Company manages its interest rate risk exposure by using a mix of fixed and variable rate debt. d) Credit risk Credit risk is the risk that financial loss to the Company may be incurred if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company manages the credit risk associated with its cash by holding its funds with what it believes to be reputable financial institutions. The Company is also exposed to credit risk through its accounts receivable and contract assets. Credit risk for trade and other accounts receivables and contract assets are managed through established credit monitoring activities. The concentration risk is mitigated primarily by the customers being large investment grade organizations. The credit worthiness of new customers is subject to review by management through consideration of the type of customer and the size of the contract. At December 31, 2018 and December 31, 2017 , the following customers represented 10% or more of accounts receivable and contract assets: December 31, 2018 December 31, 2017 Customer 1 33 % 42 % Customer 2 16 % 20 % Customer 3 12 % 10 % Customer 4 7 % 10 % Customer 5 4 % 12 % The Company reviews its accounts receivable amounts regularly and amounts are written down to their expected realizable value when outstanding amounts are determined not to be fully collectible. This generally occurs when the customer has indicated an inability to pay, the Company is unable to communicate with the customer over an extended period of time, and other methods to obtain payment have not been successful. Bad debt expense is charged to project costs in the Consolidated Statements of Operations in the period that the account is determined to be doubtful. Estimates of the allowance for doubtful accounts are determined on a customer-by-customer evaluation of collectability at each reporting date taking into consideration the following factors: the length of time the receivable has been outstanding, specific knowledge of each customer’s financial condition and historical experience. The Company reviews its contract assets regularly and assesses any amounts that are not billed within the next billing cycle to confirm collectability. The Company’s maximum exposure to credit risk for accounts receivable and contract assets is as follows: December 31, 2018 December 31, 2017 Trade accounts receivable $ 67,913 $ 45,158 Holdbacks 558 558 Accrued trade receivables 9,807 — Other receivables 4,121 1,090 Total accounts receivable $ 82,399 $ 46,806 Contract assets 10,673 21,572 Total $ 93,072 $ 68,378 Payment terms are per the negotiated customer contracts and generally range between net 15 days and net 60 days. As at December 31, 2018 and December 31, 2017 , trade receivables and holdbacks are aged as follows: December 31, 2018 December 31, 2017 Not past due $ 60,326 $ 42,882 Past due 1-30 days 6,649 2,566 Past due 31-60 days 728 — More than 61 days 768 268 Total $ 68,471 $ 45,716 As at December 31, 2018 , the Company has recorded an allowance for doubtful accounts of $nil ( December 31, 2017 - $nil ). |
Other long term obligations
Other long term obligations | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other long term obligations | Other long term obligations a) Other long term obligations are as follows: December 31, 2018 December 31, 2017 Deferred lease inducements liability (note 17(b)) $ 1,419 $ 10 Asset retirement obligation (note 17(c)) 818 744 Directors' deferred stock unit plan (note 22(e)) 13,413 5,672 Deferred gain on sale-leaseback (note 17(d)) 8,438 7,654 Provision for loss on sublease (note 17(e)) 1,535 — $ 25,623 $ 14,080 b) Deferred lease inducements liability Lease inducements applicable to lease contracts are deferred and amortized as a reduction of general and administrative expenses on a straight-line basis over the lease term, which includes the initial lease term and renewal periods only where renewal is determined to be reasonably assured. December 31, 2018 December 31, 2017 Balance, beginning of year $ 10 $ 38 Addition 1,412 — Amortization of deferred lease inducements (3 ) (28 ) Balance, end of year $ 1,419 $ 10 c) Asset retirement obligation The Company recorded an asset retirement obligation related to the future retirement of a facility on leased land. Accretion expense associated with this obligation is included in equipment costs in the Consolidated Statements of Operations. The following table presents a continuity of the liability for the asset retirement obligation: December 31, 2018 December 31, 2017 Balance, beginning of year $ 744 $ 678 Accretion expense 74 66 Balance, end of year $ 818 $ 744 At December 31, 2018 , estimated undiscounted cash flows required to settle the obligation were $1,084 ( December 31, 2017 – $1,084 ). The credit adjusted risk-free rate assumed in measuring the asset retirement obligation was 9.42% . The Company expects to settle this obligation in 2021. d) Deferred gain on sale-leaseback At December 31, 2018 , the Company recorded a gain of $2,262 ( December 31, 2017 – $5,155 ) on the sale-leaseback of certain heavy equipment. The gain on sale has been deferred and is being amortized in the Consolidated Statements of Operations over the expected useful life of the equipment. December 31, 2018 December 31, 2017 Balance, beginning of year $ 7,654 $ 3,199 Addition 2,262 5,155 Amortization of deferred gain on sale-leaseback (1,478 ) (700 ) Balance, end of year $ 8,438 $ 7,654 e) Provision for loss on sublease In 2018, the Company recorded a provision for the loss on the sub-lease of an under-utilized office facility. The provision is being amortized within general and administrative expenses in the Consolidated Statements of Operations over the remaining term of the lease. The following table presents a continuity of the provision for the loss on sublease: December 31, 2018 December 31, 2017 Balance, beginning of year $ — $ — Addition 1,732 — Amortization of loss (197 ) — Balance, end of year $ 1,535 $ — |
Shares
Shares | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shares | Shares a) Common shares Issued and outstanding: Common shares Treasury shares Common shares outstanding, net of treasury shares Issued and outstanding at December 31, 2016 30,518,907 (2,213,247 ) 28,305,660 Issued upon exercise of stock options 176,800 — 176,800 Purchase of treasury shares for settlement of certain equity classified stock-based compensation — (758,271 ) (758,271 ) Settlement of certain equity classified stock-based compensation — 353,592 353,592 Retired through share purchase program (2,625,557 ) — (2,625,557 ) Issued and outstanding at December 31, 2017 28,070,150 (2,617,926 ) 25,452,224 Issued upon exercise of stock options 297,940 — 297,940 Issued upon conversion of convertible debentures 2,211 — 2,211 Purchase of treasury shares for settlement of certain equity classified stock-based compensation — (660,620 ) (660,620 ) Settlement of certain equity classified stock-based compensation — 1,193,935 1,193,935 Retired through share purchase program (1,281,485 ) — (1,281,485 ) Issued and outstanding at December 31, 2018 27,088,816 (2,084,611 ) 25,004,205 Upon settlement of certain equity classified stock-based compensation during the year ended December 31, 2018 , the Company repurchased 553,036 shares at $4,308 to satisfy the recipient tax withholding requirements (year ended December 31, 2017 - 161,285 shares at $987 ). The repurchased shares are included in the purchase of treasury shares for settlement of certain equity classified stock-based compensation. b) Net income per share For the year ended December 31, 2018 , there were 14,247 stock options that were anti-dilutive and therefore not considered in computing diluted earnings per share (year ended December 31, 2017 – 469,819 stock options and 2,949,309 shares issuable on conversion of Convertible Debentures). Year ended December 31, 2018 2017 Net income available to common shareholders $ 15,286 $ 5,264 Interest from Convertible Debentures (after tax) 1,792 — Diluted net income available to common shareholders $ 17,078 $ 5,264 Weighted average number of common shares 24,991,517 26,697,066 Weighted average effect of dilutive securities Dilutive effect of treasury shares 2,394,824 2,622,957 Dilutive effect of stock options 357,026 285,703 Dilutive effect of Convertible Debentures 3,684,424 — Weighted average number of diluted common shares 31,427,791 29,605,726 Basic net income per share $ 0.61 $ 0.20 Diluted net income per share $ 0.54 $ 0.18 c) Share purchase programs On August 9, 2016, the Company commenced a normal course issuer bid ("NCIB") which was subsequently amended in 2017 to purchase a maximum of 2,733,482 shares. During the year ended December 31, 2017, the maximum number of shares to be purchased was 1,657,514 of which 1,482,795 were purchased, resulting in a reduction to common shares of $12,763 and an increase to additional paid-in capital of $3,484 . Commencing on August 14, 2017, the Company engaged in a NCIB under which a maximum number of 2,424,333 common shares were authorized to be purchased. As at December 31, 2017, 1,142,762 shares had been purchased and subsequently cancelled under this NCIB, resulting in a reduction of common shares of $9,810 and an increase to additional paid-in capital of $4,119 . During the twelve months ended December 31, 2018 , the Company purchased and subsequently cancelled a further 1,281,485 shares, which resulted in a reduction of common shares of $10,975 and an increase to additional paid-in capital of $1,435 . This NCIB expired on August 13, 2018. d) Dividends The Company intends to pay an annual aggregate dividend of eight Canadian cents ( $0.08 ) per common share, payable on a quarterly basis. During the year ended December 31, 2018 , the Company paid regular quarterly cash dividends of $0.02 per share on common shares ( December 31, 2017 - $0.02 ). At December 31, 2018 , an amount of $500 was included in accrued liabilities related to the dividend declared on October 29, 2018 ( December 31, 2017 - $510 ). |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue a) Disaggregation of revenue In the following table, revenue is disaggregated by source, commercial terms and method of revenue recognition. Year ended December 31, 2018 2017 Revenue by source Construction services $ 42,481 $ 21,710 Operations support services 367,580 270,847 $ 410,061 $ 292,557 By commercial terms Time-and-materials $ 151,796 $ 97,588 Unit-price 253,277 191,041 Cost-plus 4,988 3,928 $ 410,061 $ 292,557 Revenue recognition method Cost-to-cost percent complete $ 186,741 $ 125,716 As-invoiced 223,320 166,841 $ 410,061 $ 292,557 b) Customer revenues The following customers accounted for 10% or more of total revenues: Year ended December 31, 2018 2017 Customer A 43 % 44 % Customer B 23 % 26 % Customer C 21 % 17 % Customer D 9 % 11 % c) Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: December 31, December 31, 2017 Contract receivables, included in accounts receivable, net $ 78,278 $ 45,716 Contract assets 10,673 21,572 Contract liabilities 4,032 824 The following table provides information about significant changes in the contract assets: Year ended December 31, 2018 2017 Transferred to receivables from contract assets recognized at the beginning of the period $ (14,701 ) $ (9,129 ) Increases as a result of changes to the estimate of the stage of completion, excluding amounts transferred in the period 2,043 6,183 Increases as a result of work completed, but not yet an unconditional right to consideration 409 8,554 Increases as a result of Nuna acquisition 1,350 — The following table provides information about significant changes in the contract liabilities: Year ended December 31, 2018 2017 Revenue recognized that was included in the contract liability balance at the beginning of the period $ (84 ) $ (347 ) Increases due to cash received, excluding amounts recognized as revenue during the period 1,379 100 Increases as a result of Nuna acquisition 1,913 — The following table provides information about revenue recognized from performance obligations that were satisfied (or partially satisfied) in previous periods: Year ended December 31, 2018 2017 Revenue recognized $ 2,516 $ 1,177 These amounts relate to cumulative catch-up adjustments arising from changes in estimated project costs on cost-to-cost percent complete jobs and final settlement of constrained variable consideration. d) Unpriced contract modifications The Company recognized revenue from variable consideration related to unpriced contract modifications for the year ended December 31, 2018 of $250 ( December 31, 2017 - $1,168 ). The table below represents the classification of such uncollected consideration on the balance sheet: December 31, December 31, 2017 Accounts receivable $ — $ 358 Contract assets 7,526 7,662 $ 7,526 $ 8,020 e) Transaction price allocated to the remaining performance obligations The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period was $206,900 for 2019. Included is all consideration from contracts with customers, excluding amounts that are recognized using the as-invoiced method and any constrained amounts of revenue. f) Contract costs The following table summarizes contract costs included within other assets on the consolidated balance sheets. December 31, December 31, 2017 Reimbursable bid costs $ 670 $ 422 Fulfillment costs 1,638 — $ 2,308 $ 422 During the year ended December 31, 2018 , reimbursable bid costs of $248 were capitalized ( December 31, 2017 - $422 ). During the year ended December 31, 2018 , fulfillment costs of $2,611 were capitalized ( December 31, 2017 - $nil ). Included in the amount capitalized during the year ended December 31, 2018 is $502 that was capitalized on January 1, 2018 upon adoption of the new revenue standard. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The annual future minimum operating lease payments for premises for the next five years are as follows: For the year ending December 31, 2019 $ 6,003 2020 6,091 2021 6,091 2022 5,098 2023 and thereafter 12,382 $ 35,665 Included in general and administrative expenses and equipment costs are operating lease expenses relating to premises of $2,277 and $2,902 for the years ended December 31, 2018 and 2017 , respectively. |
Interest expense
Interest expense | 12 Months Ended |
Dec. 31, 2018 | |
Interest Expense [Abstract] | |
Interest expense | Interest expense Year ended December 31, 2018 2017 Interest on capital lease obligations $ 2,984 $ 3,023 Interest on credit facilities 2,729 1,507 Interest on Convertible Debentures 2,200 1,760 Interest on promissory notes 202 — Interest on mortgage 105 — Amortization of deferred financing costs (notes 10(c) and note 14(e)) 539 797 Interest on long term debt $ 8,759 $ 7,087 Other interest income (175 ) (144 ) $ 8,584 $ 6,943 During the year ended December 31, 2018 , $634 ( December 31, 2017 - $nil ) of interest was capitalized to property, plant and equipment in relation to a building construction in the year. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation a) Stock-based compensation expenses Stock-based compensation expenses included in general and administrative expenses are as follows: Year ended December 31, 2018 2017 Share option plan (note 22(b)) $ 97 $ 326 Equity classified restricted share unit plan (note 22(c)) 2,110 1,293 Equity performance restricted share unit plan (note 22(d)) 1,910 1,306 Liability classified deferred stock unit plan (note 22(e)) 7,415 1,070 $ 11,532 $ 3,995 b) Share option plan Under the 2004 Amended and Restated Share Option Plan, which was approved and became effective in 2006, directors, officers, employees and certain service providers to the Company are eligible to receive stock options to acquire voting common shares in the Company. Each stock option provides the right to acquire one common share in the Company and expires ten years from the grant date or on termination of employment. Options may be exercised at a price determined at the time the option is awarded, and vest as follows: no options vest on the award date and twenty percent vest on each subsequent anniversary date. For the year ended December 31, 2018 , 3,399,399 shares are reserved and authorized for issuance under the share option plan. Number of options Weighted average Outstanding at December 31, 2016 1,176,080 5.56 Exercised (i) (176,800 ) 3.26 Forfeited or expired (85,740 ) 12.36 Outstanding at December 31, 2017 913,540 5.36 Exercised (i) (297,940 ) 3.43 Forfeited or expired (50,000 ) 16.46 Outstanding at December 31, 2018 565,600 5.40 (i) All stock options exercised resulted in new common shares being issued (note 18(a)) . Cash received from options exercised for the year ended December 31, 2018 was $1,023 ( 2017 - $575 ). For the year ended December 31, 2018 , the total intrinsic value of options exercised, calculated as the market value at the exercise date less exercise price, multiplied by the number of units exercised, was $ 1,351 ( December 31, 2017 - $640 ). The following table summarizes information about stock options outstanding at December 31, 2018 : Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted Weighted $2.75 90,100 3.7 years $ 2.75 90,100 3.7 years $ 2.75 $2.79 162,000 3.5 years $ 2.79 162,000 3.5 years $ 2.79 $5.91 123,680 5.0 years $ 5.91 123,680 5.0 years $ 5.91 $6.56 54,880 2.9 years $ 6.56 54,880 2.9 years $ 6.56 $8.28 10,000 0.5 years $ 8.28 10,000 0.5 years $ 8.28 $8.58 30,000 1.7 years $ 8.58 30,000 1.7 years $ 8.58 $9.33 48,680 1.1 years $ 9.33 48,680 1.1 years $ 9.33 $10.13 46,260 2.0 years $ 10.13 46,260 2.0 years $ 10.13 565,600 3.3 years $ 5.40 565,600 3.3 years $ 5.40 At December 31, 2018 , the weighted average remaining contractual life of outstanding options was 3.3 years (December 31, 2017 – 4.0 years ) and the weighted average exercise price was $5.40 ( December 31, 2017 - $5.36 ). The fair value of options vested during the year ended December 31, 2018 was $98 (December 31, 2017 – $518 ). At December 31, 2018 , the Company had 565,600 exercisable options (December 31, 2017 – 887,140 ) with a weighted average exercise price of $5.40 (December 31, 2017 – $5.35 ). At December 31, 2018 , there were no compensation costs related to non-vested awards not yet recognized (December 31, 2017 – $46 ). There were no stock options granted under this plan for the years ended December 31, 2018 and 2017 , respectively. c) Restricted share unit plan Restricted Share Units (“RSU”) are granted each year to executives and other key employees with respect to services to be provided in that year and the following two years. The majority of RSUs vest at the end of a three -year term. The Company intends to settle all RSUs issued after February 19, 2014 with common shares purchased on the open market through a trust arrangement ("equity classified RSUs"). Number of units Weighted average exercise price Outstanding at December 31, 2016 1,123,975 4.20 Granted 355,292 6.02 Vested (259,860 ) 6.24 Forfeited (29,474 ) 4.00 Outstanding at December 31, 2017 1,189,933 4.22 Granted 266,196 8.02 Vested (487,376 ) 3.01 Forfeited (20,660 ) 5.45 Outstanding at December 31, 2018 948,093 8.98 At December 31, 2018 , there were approximately $2,754 of unrecognized compensation costs related to non–vested share–based payment arrangements under the equity classified RSU plan ( December 31, 2017 – $2,199 ) and these costs are expected to be recognized over the weighted average remaining contractual life of the RSUs of 1.3 years ( December 31, 2017 – 1.3 years). During the year ended December 31, 2018 , 487,376 units vested, which were settled with common shares purchased on the open market through a trust arrangement ( December 31, 2017 - 259,860 units). d) Performance restricted share units On June 11, 2014, the Company entered into an amended and restated executive employment agreement with the Chief Executive Officer (the "CEO") and granted Performance Restricted Share Units ("PSU") as a long-term incentive, which became effective July 1, 2014. Commencing with a grant on July 1, 2015, PSUs were granted to certain additional senior management employees as part of their long-term incentive compensation. The PSUs vest at the end of a three -year term and are subject to performance criteria approved by the Human Resources and Compensation Committee at the date of the grant. The Company intends to settle earned PSUs with common shares purchased on the open market through a trust arrangement. Number of units Weighted average exercise price Outstanding at December 31, 2016 739,300 4.84 Granted 248,824 5.98 Vested (69,949 ) 8.57 Forfeited (21,542 ) 4.05 Outstanding at December 31, 2017 896,633 4.81 Granted 197,763 8.01 Vested (353,279 ) 4.27 Outstanding at December 31, 2018 741,117 5.92 At December 31, 2018 , there were approximately $2,713 of total unrecognized compensation costs related to non–vested share–based payment arrangements under the PSU plan ( December 31, 2017 - $2,250 ) and these costs are expected to be recognized over the weighted average remaining contractual life of the PSUs of 1.3 years ( December 31, 2017 - 1.4 years). During the year ended December 31, 2018 , 353,279 units vested and were settled through common shares from the trust arrangement at a factor of 2.00 common shares per PSU based on performance against grant date criteria ( December 31, 2017 - 69,949 units at a factor of 1.34 ). The Company estimated the fair value of the PSUs granted during the years ended December 31, 2018 and 2017 using a Monte Carlo simulation with the following assumptions: 2018 2017 Risk-free interest rate 1.98 % 1.17 % Expected volatility 45.04 % 46.47 % e) Deferred stock unit plan On November 27, 2007, the Company approved a Deferred Stock Unit (“DSU”) Plan, which became effective January 1, 2008. Under the DSU plan non-officer directors of the Company receive 50% of their annual fixed remuneration (which is included in general and administrative expenses) in the form of DSUs and may elect to receive all or a part of their annual fixed remuneration in excess of 50% in the form of DSUs. On February 19, 2014, the Company modified its DSU plan to permit awards to executives in addition to directors, whereby eligible executives could elect to receive up to 50% of their annual bonus in the form of DSUs. The DSUs vest immediately upon issuance and are only redeemable upon death or retirement of the participant. DSU holders that are not US taxpayers may elect to defer the redemption date until a date no later than December 1st of the calendar year following the year in which the retirement or death occurred. Number of units Outstanding at December 31, 2016 941,937 Granted 114,895 Redeemed (65,249 ) Outstanding at December 31, 2017 991,583 Granted 134,656 Outstanding at December 31, 2018 1,126,239 At December 31, 2018 , the fair market value of these units was $11.91 per unit ( December 31, 2017 – $5.72 per unit). At December 31, 2018 , the current portion of DSU liabilities of $nil was included in accrued liabilities ( December 31, 2017 - $nil ) and the long term portion of DSU liabilities of $13,413 was included in other long term obligations ( December 31, 2017 - $5,672 ) in the Consolidated Balance Sheets. During the year ended December 31, 2018 , nil units were redeemed and settled in cash for $nil ( December 31, 2017 - 65,249 units were redeemed and settled in cash for $343 ). There is no unrecognized compensation expense related to the DSUs since these awards vest immediately when issued. |
Other information
Other information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Other information | Other information a) Supplemental cash flow information Year ended December 31, 2018 2017 Cash paid during the year for: Interest $ 9,258 $ 5,615 Cash received during the year for: Interest 41 162 Year ended December 31, 2018 2017 Non-cash transactions: Addition of property, plant and equipment by means of capital leases 49,440 34,730 Property, plant and equipment reclassified to asset held for sale (53 ) (6,869 ) Increase in capital lease obligations related to purchase of heavy equipment fleet and related assets 1,759 — Increase in capital lease obligations related to investment in affiliates and joint ventures 542 — Increase in capital lease obligations related to the initial investment in the partnership — 800 Increase in equipment promissory notes related to purchase of heavy equipment fleet and related assets 10,851 — Acquisition of property, plant and equipment related to the initial investment in the partnership — 2,581 Increase in long term debt related to the initial investment in the partnership — 637 Increase in long term debt related to investment in affiliates and joint ventures 3,127 — Non-cash working capital exclusions: Decrease in contract assets related to adoption of accounting standards (547 ) — Increase in inventory related to the initial partnership investment — 29 Increase in inventory related to the purchase of heavy equipment fleet and related assets 4,268 — Increase in prepaid expenses related to the initial investment in the partnership — 4 Increase in other assets related to adoption of accounting standards 502 — Increase in accrued liabilities related to the current portion of the deferred gain on sale-leaseback — (859 ) Decrease in accrued liabilities related to conversion of bonus compensation to deferred stock units 326 — Decrease in accrued liabilities related to dividend payable 10 59 Non-cash working capital transactions related to investments in affiliates and joint ventures: Increase in accounts receivable 13,234 — Increase in contract assets 3,089 — Increase in inventory 3,926 — Increase in prepaid expenses 399 — Increase in accounts payable (10,604 ) — Increase in accrued liabilities (1,136 ) — Increase in contract liabilities (360 ) — b) Net change in non-cash working capital The table below represents the cash (used in) provided by non-cash working capital: Year ended December 31, 2018 2017 Operating activities: Accounts receivable $ (22,359 ) $ (7,148 ) Contract assets 13,441 (5,607 ) Inventories (443 ) (1,288 ) Contract costs (1,384 ) — Prepaid expenses and deposits (1,513 ) (283 ) Accounts payable 17,665 5,640 Accrued liabilities 5,923 1,904 Contract liabilities 2,848 (247 ) $ 14,178 $ (7,029 ) |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans The Company and certain subsidiaries contributed $991 ( 2017 – $877 ) to employee Registered Retirement Savings Plans ("RRSP"). The Company matches voluntary contributions made by employees to their RRSP to a maximum of 5% of base salary for each employee. Other subsidiaries of the Company contribute $1.00 per hour for all eligible employees. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions A director of the Company is the President and Chief Executive Officer of a business that subleases space from the Company. The sublease was entered into several years before the director's appointment. During the year ended December 31, 2018 , the Company recorded $315 of sublease proceeds ( December 31, 2017 $332 ). At December 31, 2018, the Company had subsidiaries that it controlled and included in its consolidated financial statements as described in " Note 2 - Significant accounting policies". Using the consolidated method of accounting, all intercompany balances are eliminated. With the acquisition of Nuna on November 1, 2018 (note 5(a)) , the Company entered into related-party transactions through a number of affiliates and joint ventures. These transactions involve providing or receiving services entered into in the normal course of business. The following table provides the total dollar amount for income statement transactions that have been entered into with related parties during the year ended December 31, 2018 : Revenue Management fee revenue Interest revenue Distributions Rent expense NL Partnership $ 41 $ (7 ) $ 12 $ — $ — Affiliates 636 352 56 (102 ) 38 The Company’s revenue generated from joint ventures and affiliates are related to heavy constructions and mining services. The Company receives management fees and distributions from its investment in joint ventures and affiliates pursuant management agreements in place for certain services provided. Interest revenue transactions are generated from the working capital funding provided by the Company over projects with the joint ventures and affiliates. The rent expense is related to the lease of premises from a shareholder of an affiliate. These transactions were conducted in the normal course of operations, which were established and agreed to as consideration by the related parties. The following table provides the balance sheet balances with related parties as at December 31, 2018 : Accounts receivable Accounts payable and accrued liabilities NL Partnership $ 2,355 $ — Affiliates 719 13 Accounts receivables and accounts payable and accrued liabilities amounts are unsecured and without fixed terms of repayment. Accounts receivable from certain joint ventures and affiliates bear interest at various rates. All other accounts receivable amounts from joint ventures and affiliates are non-interest bearing. |
Comparative figures
Comparative figures | 12 Months Ended |
Dec. 31, 2018 | |
Comparative figures [Abstract] | |
Comparative figures | Comparative figures Certain comparative figures have been reclassified from statements previously presented to conform to the presentation of the current year. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies During the normal course of the Company's operations, various disputes, legal and tax matters are pending. In the opinion of management involving the use of significant judgement and estimates, these matters will not have a material effect on the Company's consolidated financial statements. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("US GAAP"). These consolidated financial statements include the accounts of the Company, its wholly-owned, Canadian incorporated subsidiaries and via certain of its subsidiaries, the Company also holds investments in other Canadian corporations, partnerships and joint ventures. All significant intercompany transactions and balances are eliminated upon consolidation. The Company consolidates variable interest entities (“VIE”s) for which it is considered to be the primary beneficiary as well as voting interest entities in which it has a controlling financial interest. Ownership represented by other parties that do not control the entities are presented in the consolidated financial statements as activities and balances attributable to noncontrolling interests. The consolidated financial statements include the accounts of VIEs for which the Company is the primary beneficiary. A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Upon inception or acquisition of a contractual agreement, the Company performs an assessment to determine whether the arrangement contains a variable interest in a legal entity and whether that legal entity is a VIE. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE entity that could potentially be significant to the VIE. Where it is concluded that the Company is the primary beneficiary of a VIE, the Company will consolidate the accounts of that VIE. The Company assesses all variable interests in the entity and uses its judgment when determining if it is the primary beneficiary. Other qualitative factors that are considered include decision-making responsibilities, the VIE capital structure, risk and rewards sharing, contractual agreements with the VIE, voting rights and level of involvement of other parties. The Company assesses the primary beneficiary determination for a VIE on an ongoing basis as changes occur in the facts and circumstances related to a VIE. Investees and joint ventures over which the Company exercises significant influence are accounted for using the equity method and are included in “investments in affiliates and joint ventures” within the accompanying consolidated balance sheet. The Company has elected to apply the provision available to entities operating within the construction industry to apply proportionate consolidation to unincorporated entities that would otherwise be accounted for using the equity method. For certain investments in the construction industry where the Company retains an undivided interest in assets and liabilities, the Company records its proportionate share of assets, liabilities, revenues and expenses. If an entity is determined to not be a VIE, the voting interest entity model will be applied. Further discussion of the Company's investments is included in "note 13 - investments in affiliates and joint ventures". |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures reported in these consolidated financial statements and accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates and judgments made by management include: • the assessment of the percentage of completion on time-and-materials, unit-price, lump-sum and cost-plus contracts with defined scope (including estimated total costs and provisions for estimated losses) and the recognition of claims and change orders on revenue contracts; • the determination of whether an acquisition meets the definition of a business combination; • the fair value of the assets acquired and liabilities assumed as part of an acquisition; • the evaluation of whether the Company consolidates entities in which it has a controlling financial interest based on either a VIE or voting interest model; • assumptions used in impairment testing; and • estimates and assumptions used in the determination of the allowance for doubtful accounts, the recoverability of deferred tax assets and the useful lives of property, plant and equipment and intangible assets. The accuracy of the Company’s revenue and profit recognition in a given period is dependent on the accuracy of its estimates of the cost to complete for each project. Cost estimates for all significant projects use a detailed “bottom up” approach and the Company believes its experience allows it to provide reasonably dependable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability that are recognized in the period in which such adjustments are determined. The most significant of these include: • the completeness and accuracy of the original bid; • costs associated with added scope changes; • extended overhead due to owner, weather and other delays; • subcontractor performance issues; • changes in economic indices used for the determination of escalation or de-escalation for contractual rates on long-term contracts; • changes in productivity expectations; • site conditions that differ from those assumed in the original bid; • contract incentive and penalty provisions; • the availability and skill level of workers in the geographic location of the project; and • a change in the availability and proximity of equipment and materials. The foregoing factors as well as the mix of contracts at different margins may cause fluctuations in gross profit between periods. With many projects of varying levels of complexity and size in process at any given time, changes in estimates can offset each other without materially impacting the Company’s profitability. Major changes in cost estimates, particularly in larger, more complex projects, can have a significant effect on profitability. |
Revenue recognition | g) Contract costs The Company occasionally incurs costs to obtain contracts (reimbursable bid costs) and to fulfill contracts (fulfillment costs). If these costs meet certain criteria, they are capitalized as contract costs, included within other assets on the consolidated balance sheets. Capitalized costs are amortized based on the transfer of goods or services to which the assets relate and are included in project costs. Reimbursable bid costs meet the criteria for capitalization when these costs will be reimbursed by the owner regardless of the outcome of the bid. Generally, this occurs when the Company has been selected as the preferred bidder for a project. The Company recognizes reimbursable bid costs as an expense when incurred if the amortization period of the asset that the entity would have otherwise recognized is one year or less. Costs to fulfill a contract meet the criteria for capitalization if they relate directly to a specifically identifiable contract, they generate or enhance resources that will be used to satisfy future performance obligations and if the costs are expected to be recovered. The costs that meet this criterion are often mobilization and site set-up costs. h) Remaining performance obligations Remaining performance obligation represents the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. The Company's long term contracts typically allow customers to unilaterally reduce or eliminate the scope of the contracted work without cause. These long term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Excluded from this disclosure are amounts where the Company recognizes revenue as-invoiced (note 19(e)) . i) Contract liabilities Contract liabilities consist of advance payments and billings in excess of costs incurred and estimated earnings on uncompleted contracts. Revenue recognition The Company's revenue source falls into one of two categories: construction services or operations support. Construction services are related to mine development or expansion projects and are generally funded from customers' capital budgets. The Company provides construction services under lump-sum, unit-price, time-and materials and cost-plus contracts. When the commercial terms are lump-sum and unit-price, the contract scope and value is typically defined. Time-and-materials and cost-plus contracts are generally undefined in scope and total price. Operations support services revenue is mainly generated under long term site-services agreements with the customers (master service agreement and multiple use contracts). Such agreements typically do not include a commitment to the volume or scope of services over the life of the contract. Work under the agreement is instead awarded through shorter-term work authorizations under the general terms of the agreement. The Company generally provides operations support services under either time-and-materials or unit-price contracts depending on factors such as the degree of complexity, the completeness of engineering and the required schedule. Significant estimates are required in the revenue recognition process including assessment of the percentage of completion, identification of performance obligations, and estimation of variable consideration including the constraint. The Company’s invoicing frequency and payment terms are in accordance with negotiated customer contracts. Customer invoicing can range between daily and monthly and payment terms range between net 15 and net 60 days. The Company does not typically include extended payment terms in its contracts with customers. Under these payment terms, the customer pays progress payments based on actual work or milestones completed. When payment terms do not align with revenue recognition, the variance is recorded to either contract liabilities or contract assets, as appropriate. Customer contracts do not generally include a significant financing component because the Company does not expect the period between customer payment and transfer of control to exceed one year. The Company does not adjust consideration for the effects of a significant financing component if the period of time between the transfer of control and the customer payment is less than one year. The Company accounts for a contract when it has approval and commitments from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. Each contract is evaluated to determine if it includes more than one performance obligation. This evaluation requires significant judgement and the determination that the contract contains more than one performance obligation could change the amount of revenue and profit recorded in a given period. The majority of the Company's contracts with defined scope include a significant integration service, where the Company is responsible for ensuring the individual goods and services are incorporated into one combined output. Such contracts are accounted for as one performance obligation. When more than one distinct good or service is contracted, the contract is separated into more than one performance obligation and the total transaction price is allocated to each performance obligation based upon stand-alone selling prices. When a stand-alone selling price is not observable, it is estimated using a suitable method. The total transaction price can be comprised of fixed consideration and variable consideration, such as profit incentives, discounts and performance bonuses or penalties. When a contract includes variable consideration, the amount included in the total transaction price is based on the expected value or the mostly likely amount, constrained to an amount that it is probable a significant reversal will not occur. Significant judgement is involved in determining if a variable consideration amount should be constrained. In applying this constraint, the Company considers both the likelihood of a revenue reversal arising from an uncertain future event and the magnitude of the revenue reversal if the uncertain event were to occur or fail to occur. The following circumstances are considered to be possible indicators of significant revenue reversals: • The amount of consideration is highly susceptible to factors outside the Company’s influence, such as judgement of actions of third parties and weather conditions; • The length of time between the recognition of revenue and the expected resolution; • The Company’s experience with similar circumstances and similar customers, specifically when such items have predictive value; • The Company’s history of resolution and whether that resolution includes price concessions or changing payment terms; and • The range of possible consideration amounts. The Company's performance obligations are typically satisfied by transferring control over time, for which revenue is recognized using the percentage of completion method, measured by the ratio of costs incurred to date to estimated total costs. For defined scope contracts, the cost-to-cost method faithfully depicts the Company’s performance because the transfer of the asset to the customer occurs as costs are incurred. The costs of items that do not relate to the performance obligation, particularly in the early stages of the contract, are excluded from costs incurred to date. Pre-construction activities, such as mobilization and site setup, are recognized as contract costs on the consolidated balance sheets and amortized over the life of the project. These costs are excluded from the cost-to cost calculation. The Company has elected to apply the ‘as-invoiced’ practical expedient to recognize revenue in the amount to which the Company has a right to invoice for all contracts in which the value of the performance completed to date directly corresponds with the right to consideration. This will be applied to all contracts, where applicable, and the majority of undefined scope work is expected to use this practical expedient. The length of the Company’s contracts varies from less than one year for typical contracts to several years for certain larger contracts. Project costs include all direct labour, material, subcontract and equipment costs and those indirect costs related to contract performance such as indirect labour and supplies. General and administrative expenses are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in project performance, project conditions, and estimated profitability, including those arising from profit incentives, penalty provisions and final contract settlements, may result in revisions to costs and revenue that are recognized in the period in which such adjustments are determined. Once a project is underway, the Company will often experience changes in conditions, client requirements, specifications, designs, materials and work schedules. Generally, a “change order” will be negotiated with the customer to modify the original contract to approve both the scope and price of the change. Occasionally, disagreements arise regarding changes, their nature, measurement, timing and other characteristics that impact costs and revenue under the contract. When a change becomes a point of dispute between the Company and a customer, the Company will assess the legal enforceability of the change to determine if a contract modification exists. The Company considers a contract modification to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most contract modifications are for goods and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as part of the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. If a contract modification is approved in scope and not price, the associated revenue is treated as variable consideration, subject to constraint. This can lead to a situation where costs are recognized in one period and revenue is recognized when customer agreement is obtained or claim resolution occurs, which can be in subsequent periods. The Company’s long term contracts typically allow its customers to unilaterally reduce or eliminate the scope of the work as contracted without cause. These long term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Revenue is measured based on consideration specified in the customer contract, and excludes any amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specified revenue producing transaction, that are collected by the Company for a customer, are excluded from revenue. |
Balance sheet classification | Balance sheet classifications A one-year time period is typically used as the basis for classifying current assets and liabilities. However, included in current assets and liabilities are amounts receivable and payable under construction contracts (principally holdbacks) that may extend beyond one year. |
Cash | Cash Cash includes cash on hand and bank balances net of outstanding cheques. |
Accounts receivable and unbilled revenue | Accounts receivable and contract assets Accounts receivable are recorded when the Company has an unconditional right to consideration arising from performance of contracts with customers. Accounts receivable may be comprised of amounts billed to customers and amounts that have been earned but have not yet been billed. Such unbilled but earned amounts generally arise when a billing period ends prior to the end of the reporting period. When this occurs, revenue equal to the earned and unbilled amount is accrued. Such accruals are classified as accounts receivable on the balance sheet, even though they are not yet billed, as they represent consideration for work that has been completed prior to the period end where the Company has an unconditional right to consideration. Contract assets include unbilled amounts representing revenue recognized from work performed where the Company does not yet have an unconditional right to compensation. These balances generally relate to (i) revenue accruals on forecasted jobs where the percentage of completion method of revenue recognition requires an accrual over what has been billed and (ii) revenue recognized from variable consideration related to unpriced contract modifications. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company evaluates the probability of collection of accounts receivable and records an allowance for doubtful accounts, which reduces accounts receivable to the amount management reasonably believes will be collected. In determining the amount of the allowance, the following factors are considered: the length of time the receivable has been outstanding, specific knowledge of each customer’s financial condition and historical experience. |
Inventories | Inventories Inventories are carried at the lower of cost and net realizable value, and consist primarily of spare tires, tracks, track frames, fuel and lubricants. Cost is determined using the weighted average method. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost. The Company capitalizes interest incurred on debt during the construction of assets for the Company’s own use. The capitalization period covers the duration of the activities required to get the asset ready for its intended use, provided that expenditures for the asset have been made and interest cost incurred. Interest capitalization continues as long as those activities and the incurrence of interest cost continue. Equipment under capital lease is recorded at the present value of minimum lease payments at the inception of the lease. Major components of heavy construction equipment in use such as engines and drive trains are recorded separately. The capitalized interest is amortized at the same rate as the respective asset. Depreciation is not recorded until an asset is available for use. Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 3,000 - 120,000 hours Major component parts in use Units of production 3,000 - 50,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 5 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation The costs for periodic repairs and maintenance are expensed to the extent the expenditures serve only to restore the assets to their normal operating condition without enhancing their service potential or extending their useful lives. |
Intangible assets | Intangible assets Acquired intangible assets with finite lives are recorded at historical cost net of accumulated amortization and accumulated impairment losses, if any. The cost of intangible assets acquired in an asset acquisition are recorded at cost based upon relative fair value as at the acquisition date. Costs incurred to increase the future benefit of intangible assets are capitalized. Intangible assets with definite lives are amortized over their estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer contracts Straight-line 1 - 2 years Favourable land lease Straight-line 27 years Assembled workforce Straight-line 5 years Partnership relationship Straight-line 5 years Brand Straight-line 5 years |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets or asset groups held and used including property, plant and equipment and identifiable intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value, which is charged to depreciation or amortization expense. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of its long-lived assets, such as: applicable industry performance and prospects; general business and economic conditions that prevail and are expected to prevail; expected growth; maintaining its customer base; and, achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of long-lived assets. Furthermore, the process of determining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates. |
Assets held for sale | Assets held for sale Long-lived assets are classified as held for sale when certain criteria are met, which include: • management, having the authority to approve the action, commits to a plan to sell the assets; • the assets are available for immediate sale in their present condition; • an active program to locate buyers and other actions to sell the assets have been initiated; • the sale of the assets is probable and their transfer is expected to qualify for recognition as a completed sale within one year ; • the assets are being actively marketed at reasonable prices in relation to their fair value; and • it is unlikely that significant changes will be made to the plan to sell the assets or that the plan will be withdrawn. A long-lived asset that is newly acquired and will be sold rather than held and used is classified as held for sale if the one year requirement is met and if the other requirements are expected to be met within a short period following the asset acquisition. Assets to be disposed of by sale are reported at the lower of their carrying amount or estimated fair value less costs to sell and are disclosed separately on the Consolidated Balance Sheets. These assets are not depreciated. Equipment disposal decisions are made using an approach in which a target life is set for each type of equipment. The target life is based on the manufacturer’s recommendations and the Company’s past experience in the various operating environments. Once a piece of equipment reaches its target life it is evaluated to determine if disposal is warranted based on its expected operating cost and reliability in its current state. If the expected operating cost exceeds the target operating cost for the fleet or if the expected reliability is lower than the target reliability of the fleet, the unit is considered for disposal. Expected operating costs and reliability are based on the past history of the unit and experience in the various operating environments. Once the Company has determined that the equipment will be disposed, and the criteria for assets held for sale are met, the unit is recorded in assets held for sale at the lower of depreciated cost or net realizable value. |
Asset retirement obligations | Asset retirement obligations Asset retirement obligations are legal obligations associated with the retirement of property, plant and equipment that result from their acquisition, lease, construction, development or normal operations. The Company recognizes its contractual obligations for the retirement of certain tangible long-lived assets. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of a liability for an asset retirement obligation is the amount at which that liability could be settled in a current transaction between willing parties. In the absence of observable market transactions, the fair value of the liability is determined as the present value of expected cash flows. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and then amortized using a systematic and rational method over its estimated useful life. In subsequent reporting periods, the liability is adjusted for the passage of time through an accretion charge and any changes in the amount or timing of the underlying future cash flows are recognized as an additional asset retirement cost. |
Foreign currency translation | Foreign currency translation The functional currency of the Company and its subsidiaries is Canadian Dollars. Transactions denominated in foreign currencies are recorded at the rate of exchange on the transaction date. Monetary assets and liabilities, denominated in foreign currencies, are translated into Canadian Dollars at the rate of exchange prevailing at the balance sheet date. Foreign exchange gains and losses are included in the determination of earnings. |
Fair value measurement | Fair value measurement Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. |
Income taxes | Income taxes The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period of enactment. A valuation allowance is recorded against any deferred tax asset if it is more likely than not that the asset will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not (greater than 50% ) of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. The Company accrues interest and penalties for uncertain tax positions in the period in which these uncertainties are identified. Interest and penalties are included in “General and administrative expenses” in the Consolidated Statements of Operations. |
Stock-based compensation | Stock-based compensation The Company has a Share Option Plan which is described in note 22 (b). The Company accounts for all stock-based compensation payments that are settled by the issuance of equity instruments at fair value. Compensation cost is measured using the Black-Scholes model at the grant date and is expensed on a straight-line basis over the award’s vesting period, with a corresponding increase to additional paid-in capital. Upon exercise of a stock option, share capital is recorded at the sum of proceeds received and the related amount of additional paid-in capital. The Company has a Restricted Share Unit (“RSU”) Plan which is described in note 22 (c). RSUs are generally granted effective July 1 of each fiscal year with respect to services to be provided in that fiscal year and the following two fiscal years. The RSUs generally vest at the end of the three -year term. The Company settles RSUs with common shares purchased on the open market through a trust arrangement. Compensation expense is calculated based on the number of vested RSUs multiplied by the fair value of each RSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value was to be determined. The Company recognizes compensation cost over the three -year term in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. When dividends are paid on common shares, additional dividend equivalent RSUs are granted to all RSU holders as of the dividend payment date. The number of additional RSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding RSUs, divided by the fair market value of the Company's common shares on the dividend payment date. Such additional RSUs are granted subject to the same service criteria as the underlying RSUs. The Company has a Performance Restricted Share Unit ("PSU") plan which is described in note 22 (d). The PSUs vest at the end of a three -year term and are subject to the performance criteria approved by the Human Resources and Compensation Committee at the date of the grant. Such performance criterion includes the passage of time and is based upon the improvement of total shareholder return ("TSR") as compared to a defined company Canadian peer group. TSR is calculated using the fair market values of voting common shares at the grant date, the fair market value of voting common shares at the vesting date and the total dividends declared and paid throughout the vesting period. The grants are measured at fair value on the grant date using the Monte Carlo model. At the maturity date, the Human Resources and Compensation Committee will assess actual performance against the performance criteria and determine the number of PSUs that have been earned. The Company intends to settle all PSUs with common shares purchased on the open market through a trust arrangement. The Company recognizes compensation cost over the three -year term of the PSU in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. The Company has a Deferred Stock Unit (“DSU”) Plan which is described in note 22 (e). The DSU plan enables directors and executives to receive all or a portion of their annual fee or annual executive bonus compensation in the form of DSUs and are settled in cash. Compensation expense is calculated based on the number of DSUs multiplied by the fair market value of each DSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value is to be determined, with any changes in fair value recognized in general and administrative expenses on the Consolidated Statements of Operations. Compensation costs related to DSUs are recognized in full upon the grant date as the units vest immediately. When dividends are paid on common shares, additional dividend equivalent DSUs are granted to all DSU holders as of the dividend payment date. The number of additional DSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding DSUs, divided by the fair market value of the Company's common shares on the dividend payment date. Such additional DSUs are granted subject to the same service criteria as the underlying DSUs. As stock-based compensation expense recognized in the Consolidated Statements of Earnings is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised, in subsequent periods if actual forfeitures differ from those estimates. |
Net income (loss) per share | Net income per share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the year (see note 18 (b)). Diluted net income per share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the year, adjusted for dilutive share amounts. The diluted per share amounts are calculated using the treasury stock method and the if-converted method. The treasury stock method increases the diluted weighted average shares outstanding to include additional shares from the assumed exercise of equity settled stock options, if dilutive. The number of additional shares determined using the treasury stock method is calculated by assuming outstanding in-the-money stock options were exercised and the proceeds from such exercises, including any unamortized stock-based compensation cost, were used to acquire shares of common stock at the average market price during the year. The if-converted method increases the diluted weighted average shares outstanding to include additional shares from the assumed conversion of convertible debentures, if dilutive. The number of additional shares is calculated by assuming the dilutive convertible shares would be outstanding for the entire period, or at the date of issuance, if later. If the convertible debentures are dilutive, the after tax interest expense related to the convertible debentures for the entire period, or from the date of issuance if later, is added back to the net income. |
Leases | Leases Leases entered into by the Company in which substantially all the benefits and risks of ownership are transferred to the Company are recorded as obligations under capital leases and under the corresponding category of property, plant and equipment. Obligations under capital leases reflect the present value of future lease payments, discounted at an appropriate interest rate, and are reduced by rental payments net of imputed interest. All other leases are classified as operating leases and leasing costs, including any rent holidays, leasehold incentives, and rent concessions, are amortized on a straight-line basis over the lease term. |
Deferred financing costs | Deferred financing costs Underwriting, legal and other direct costs incurred in connection with the issuance of debt are presented as deferred financing costs. Deferred financing costs related to the issuance of the Convertible Debentures and the Previous Term Loans are included within liabilities on the Consolidated Balance Sheets and are amortized using the effective interest rate method over the term to maturity. Deferred financing costs related to the Revolver, and the Previous Revolver, are included within other assets on the Consolidated Balance Sheets and are amortized ratably over the term of the Credit Facility. |
Equity method investments | Equity method investments The Company utilizes the equity method to account for its interests in affiliates and joint ventures that the Company does not control but over which it exerts significant influence. The equity method is typically used when it has an ownership interest of between 20% and 50% in an entity, provided the Company is able to exercise significant influence over the investee’s operations. Significant influence is the power to participate in the financial and operating policy decisions of the investee. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. Transaction costs that are incremental and directly attributable to the investment in affiliates and joint ventures are included in the cost. The total initial cost of the investment is attributable to the net assets in the equity investee at fair value and additional assets acquired including intangible assets. The carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate or joint venture since the acquisition date. The Consolidated Statement of Operations and Comprehensive Income reflects the Company’s share of the results of operations of the associate or joint venture. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, the Company recognizes its share of any changes, when applicable, in the statement of changes in shareholders’ equity. Unrealized gains and losses resulting from transactions between the Company and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture. The aggregate of the Company’s share of profit or loss of an associate and a joint venture is shown on the face of the consolidated statement of operations and comprehensive income outside operating profit and represents profit or loss after tax and noncontrolling interests in the subsidiaries of the associate or joint venture. After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, the Company determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within ‘Equity earnings in associates and joint ventures’ in the consolidated statement of operations and comprehensive income. Upon loss of significant influence over the associate or joint control over the joint venture, the Company measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. |
New accounting pronouncements | Accounting pronouncements recently adopted a) Revenue from contracts with customers The Company adopted Topic 606, Revenue from Contracts with Customers, with a date of initial application of January 1, 2018. The Company used the modified cumulative effect retrospective transition method by recognizing the cumulative effect as an adjustment to the opening balance of equity at January 1, 2018. The Company applied Topic 606 to contracts that were not completed at the time of transition and elected to not separately evaluate the effects of each contract modification prior to the date of adoption. Therefore, comparative financial information has not been adjusted and continues to be reported under the prior standard. The main impact of the application of this new standard reflected through the adjustment to the opening balance of equity at January 1, 2018 relates to the change in the treatment of mobilization costs which were previously considered a component of the contract. Mobilization costs are now considered a cost to fulfill the contract and not part of the performance obligation. This resulted in a reversal in the amount of cumulative revenue recognized, which was offset by associated amortization expense. The net impact to opening deficit as at January 1, 2018 is $45 . Other adjustments include a reclassification of unconditional rights to consideration between contract assets and accounts receivable due to a change in presentation requirements for contract balances. The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated balance sheets at December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets Accounts receivable, net (notes 6 and 19(c)) $ 82,399 $ (9,809 ) $ 72,590 Contract assets (note 19(c)) 10,673 (10,673 ) — Unbilled revenue — 22,421 22,421 130,379 1,939 132,318 Other assets (note 10) 10,204 (1,636 ) 8,568 Investments in affiliates and joint ventures (note 13(a)) 11,788 168 11,956 $ 689,800 $ 471 $ 690,271 Liabilities and Shareholders' Equity Current liabilities Contract liabilities $ 4,032 $ (4,032 ) $ — Billings in excess of costs incurred and estimated earnings on uncompleted contracts — 4,032 4,032 148,895 — 148,895 Deferred tax liabilities (note 11) 44,787 127 44,914 $ 539,585 $ 127 $ 539,712 Shareholders' Equity Deficit (113,917 ) 344 (113,573 ) $ 149,721 $ 344 $ 150,065 Total Liabilities and Equity $ 689,800 $ 471 $ 690,271 Amounts previously classified as unbilled revenue and billings in excess of costs incurred and estimated earnings on uncompleted contracts are now classified as contract assets and contract liabilities, respectively. For consistency, these new classifications have been applied to amounts in comparative prior periods on the consolidated balance sheets and within the notes that follow. The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated statements of operations and comprehensive income for the year ended December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Revenue (note 19) $ 410,061 $ 1,940 $ 412,001 Project costs 152,943 1,637 154,580 Gross profit $ 69,076 $ 303 $ 69,379 Operating income before the undernoted $ 29,980 $ 303 $ 30,283 Equity earnings in affiliates and joint ventures (note 13(a)) (60 ) (168 ) (228 ) Income before income taxes $ 21,417 $ 471 $ 21,888 Deferred income tax expense (note 11) 6,096 127 6,223 Net income and comprehensive income $ 15,321 $ 344 $ 15,665 The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated statements of cash flows for the year ended December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Cash provided by (used in): Operating activities: Net income and comprehensive income $ 15,321 $ 344 $ 15,665 Deferred income tax expense (note 11) 6,096 127 6,223 Net changes in non-cash working capital (note 23(b)) 14,178 (471 ) 13,707 109,371 — 109,371 Decrease in cash $ 11,322 $ — $ 11,322 b) Statement of cash flows In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-15, Statement of Cash Flows (Topic 230: Classification of Certain Cash Receipts and Cash Payments). This accounting standard eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayments or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. This standard was adopted January 1, 2018 and the adoption did not have a material effect on the Company's consolidated financial statements. c) Stock-based compensation In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718: Scope of Modification Accounting). This accounting standard update clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This standard was adopted January 1, 2018 and the adoption did not have a material effect on the Company's consolidated financial statements. d) Definition of a business In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805). This accounting standard update clarifies the definition of a business and provides a screening test to determine when an integrated set of assets and activities is not considered a business and, thus, is accounted for as an asset acquisition as opposed to a business combination. The screening test requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not considered a business. This standard was adopted during the year ended December 31, 2018. As discussed in note 5 , the Company’s two acquisitions were both determined to be asset acquisitions. Recent accounting pronouncements not yet adopted a) Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), and subsequently issued several related ASUs to supersede the current leases accounting standard (Topic 840). The main difference between the new standard and the current standard is the requirement that lessees recognize a lease liability and a right-of-use asset for leases classified as operating leases. Lessor accounting remains largely unchanged. Additionally, the standard requires that for a sale to occur in a sale-leaseback transaction, the transfer of assets must meet the requirements for a sale under the new revenue standard. The new lease standard will be effective for the Company for interim and annual reporting periods commencing January 1, 2019, with early adoption permitted. The standard requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new standard will result in recognition of right-of-use assets and liabilities on the consolidated balance sheets. The Company continues to evaluate the impact of adopting the standard on its financial statements and disclosure through its change management plan which guides the adoption of the standard. The Company has compiled an inventory of all leases and has analyzed individual contracts or groups of contracts to identify any significant differences and the impact on lease transactions as a result of adopting the new standard. Through this process, the Company is quantifying the impact on transactions as well as assess the Company’s policies, practices, procedures, controls, and systems for changes necessary to process and compile the information to meet the requirements of the new standard. b) Fair value measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This accounting standard update was issued to improve the effectiveness of disclosure requirements on fair value measurement. This standard is effective January 1, 2020 with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. c) Internal-use software In August 2018, the FASB issued ASU 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. This accounting standard update was issued to clarify the accounting for implementation costs in cloud computing arrangements. This standard is effective January 1, 2020 with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. d) Related party guidance for variable interest entities In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities. This accounting standard update was issued to provide an update for determining whether a decision-making fee is a variable interest requiring reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety. This standard is effective January 1, 2020. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. e) Collaborative arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808), Clarifying the Interaction between Topic 808 and Topic 606. This accounting standard update was issued to clarify which transactions should be accounted for as revenue under Topic 606, and additional guidance added to Topic 808 to further align with Topic 606. This standard is effective January 1, 2020. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of depreciation of property, plant and equipment | Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 3,000 - 120,000 hours Major component parts in use Units of production 3,000 - 50,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 5 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation December 31, 2018 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 346,071 $ 78,296 $ 267,775 Major component parts in use 143,032 66,019 77,013 Other equipment 33,824 21,711 12,113 Licensed motor vehicles 19,745 15,618 4,127 Office and computer equipment 8,972 6,450 2,522 Land 11,095 — 11,095 Buildings 31,425 6,265 25,160 Leasehold improvements 2,875 1,053 1,822 597,039 195,412 401,627 Assets under capital lease Heavy equipment 110,759 35,376 75,383 Major component parts in use 64,602 16,964 47,638 Other equipment 772 17 755 Licensed motor vehicles 3,822 1,087 2,735 Office and computer equipment 23 23 — Buildings 25 6 19 180,003 53,473 126,530 Total property, plant and equipment $ 777,042 $ 248,885 $ 528,157 December 31, 2017 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 196,045 $ 77,726 $ 118,319 Major component parts in use 72,448 45,694 26,754 Other equipment 31,923 18,400 13,523 Licensed motor vehicles 18,298 14,888 3,410 Office and computer equipment 10,157 9,468 689 Land 7,168 — 7,168 Buildings 2,547 2,482 65 338,586 168,658 169,928 Assets under capital lease Heavy equipment 69,657 28,613 41,044 Major component parts in use 85,015 21,247 63,768 Other equipment 558 543 15 Licensed motor vehicles 5,129 1,242 3,887 Office and computer equipment 23 17 6 160,382 51,662 108,720 Total property, plant and equipment $ 498,968 $ 220,320 $ 278,648 |
Schedule of useful lives of definite lived intangible assets | Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer contracts Straight-line 1 - 2 years Favourable land lease Straight-line 27 years Assembled workforce Straight-line 5 years Partnership relationship Straight-line 5 years Brand Straight-line 5 years December 31, 2018 Cost Accumulated amortization Net book value Internal-use software $ 11,925 $ 11,019 $ 906 Other intangible assets 2,010 — 2,010 $ 13,935 $ 11,019 $ 2,916 December 31, 2017 Cost Accumulated amortization Net book value Internal-use software $ 18,188 $ 17,250 $ 938 |
Accounting pronouncements rec_2
Accounting pronouncements recently adopted (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Effects of Adopting New Revenue Standard | The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated statements of operations and comprehensive income for the year ended December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Revenue (note 19) $ 410,061 $ 1,940 $ 412,001 Project costs 152,943 1,637 154,580 Gross profit $ 69,076 $ 303 $ 69,379 Operating income before the undernoted $ 29,980 $ 303 $ 30,283 Equity earnings in affiliates and joint ventures (note 13(a)) (60 ) (168 ) (228 ) Income before income taxes $ 21,417 $ 471 $ 21,888 Deferred income tax expense (note 11) 6,096 127 6,223 Net income and comprehensive income $ 15,321 $ 344 $ 15,665 The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated statements of cash flows for the year ended December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Cash provided by (used in): Operating activities: Net income and comprehensive income $ 15,321 $ 344 $ 15,665 Deferred income tax expense (note 11) 6,096 127 6,223 Net changes in non-cash working capital (note 23(b)) 14,178 (471 ) 13,707 109,371 — 109,371 Decrease in cash $ 11,322 $ — $ 11,322 The following table summarizes the effects of adopting the new revenue standard on the Company's consolidated balance sheets at December 31, 2018 : (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets Accounts receivable, net (notes 6 and 19(c)) $ 82,399 $ (9,809 ) $ 72,590 Contract assets (note 19(c)) 10,673 (10,673 ) — Unbilled revenue — 22,421 22,421 130,379 1,939 132,318 Other assets (note 10) 10,204 (1,636 ) 8,568 Investments in affiliates and joint ventures (note 13(a)) 11,788 168 11,956 $ 689,800 $ 471 $ 690,271 Liabilities and Shareholders' Equity Current liabilities Contract liabilities $ 4,032 $ (4,032 ) $ — Billings in excess of costs incurred and estimated earnings on uncompleted contracts — 4,032 4,032 148,895 — 148,895 Deferred tax liabilities (note 11) 44,787 127 44,914 $ 539,585 $ 127 $ 539,712 Shareholders' Equity Deficit (113,917 ) 344 (113,573 ) $ 149,721 $ 344 $ 150,065 Total Liabilities and Equity $ 689,800 $ 471 $ 690,271 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of investments in affiliates and joint ventures | Assets Cash $ 10,939 Accounts receivable, net 13,234 Contract assets 3,089 Inventories 3,926 Prepaid expenses and deposits 304 31,492 Property, plant and equipment 15,962 Other assets 1,375 Investment in affiliates and joint ventures 11,728 Total Assets 60,557 Liabilities Accounts payable 10,604 Accrued liabilities 1,136 Contract liabilities 360 12,100 Long term debt (including current portion) 3,127 Capital lease obligation (including current portion) 542 Deferred tax liabilities 1,938 Total Liabilities 17,707 Net assets acquired $ 42,850 The following table summarizes the investments of the NL Partnership, including the NL Partnership’s ownership interest therein: NL Partnership Interest Equity method investments: Kivalliq Services Ltd. (i) 33.33 % HRN Contracting Ltd. (ii) 33.33 % Proportionately consolidated investments: Amik Nuna Forestry Services 50.00 % Aroland Nuna 49.00 % Fond Du Lac Nuna 49.00 % Mahiikanuk Nuna 49.00 % Met Nuna 75.00 % Nuna Bauer 50.00 % EDC Nuna Contracting 70.00 % Attawapiskat Nuna 75.00 % Westarc Drilling & Blasting Joint Venture (iii) 30.00 % Consolidated investments: Deton Cho Nuna 60.00 % Nuna Deton Cho Winter Road Services 75.00 % Nuna Deton Cho Contracting 100.00 % (i) Includes investment in MTKSL Contracting Joint Venture (ii) Includes investment in TDIC/HRN Contracting Joint Venture (iii) Includes investment in Westarc Drilling & Blasting Services Ltd. The following table summarizes the movement in the investments in affiliates and joint ventures balance during the year: December 31, 2018 December 31, 2017 Balance, beginning of the year $ — $ — Additions arising on acquisition 11,728 — Share of net income 60 — Balance, end of the year $ 11,788 $ — The financial information for the investments in affiliates and joint ventures accounted for using the equity method is summarized as follows: Balance Sheets December 31, December 31, Assets Current assets $ 9,769 $ — Non-current assets 2,392 — Total assets $ 12,161 $ — Liabilities Current liabilities $ 4,013 $ — Non-current liabilities 3,032 — Total liabilities $ 7,045 $ — Statement of Operations and Comprehensive Income Year ended December 31, 2018 2017 Revenues $ 1,771 $ — Gross profit 152 — Income before taxes 98 — Net income and comprehensive income $ 60 $ — |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, 2018 December 31, 2017 Trade $ 67,913 $ 45,158 Holdbacks 558 558 Accrued trade receivables 9,807 — Contract receivables (note 19(c)) $ 78,278 $ 45,716 Other 4,121 1,090 $ 82,399 $ 46,806 |
Prepaid expenses and deposits (
Prepaid expenses and deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and deposits | December 31, 2018 December 31, 2017 Prepaid insurance and deposits $ 1,149 $ 844 Prepaid interest payments 826 85 Current portion of prepaid lease payments 1,761 969 $ 3,736 $ 1,898 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 3,000 - 120,000 hours Major component parts in use Units of production 3,000 - 50,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 5 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation December 31, 2018 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 346,071 $ 78,296 $ 267,775 Major component parts in use 143,032 66,019 77,013 Other equipment 33,824 21,711 12,113 Licensed motor vehicles 19,745 15,618 4,127 Office and computer equipment 8,972 6,450 2,522 Land 11,095 — 11,095 Buildings 31,425 6,265 25,160 Leasehold improvements 2,875 1,053 1,822 597,039 195,412 401,627 Assets under capital lease Heavy equipment 110,759 35,376 75,383 Major component parts in use 64,602 16,964 47,638 Other equipment 772 17 755 Licensed motor vehicles 3,822 1,087 2,735 Office and computer equipment 23 23 — Buildings 25 6 19 180,003 53,473 126,530 Total property, plant and equipment $ 777,042 $ 248,885 $ 528,157 December 31, 2017 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 196,045 $ 77,726 $ 118,319 Major component parts in use 72,448 45,694 26,754 Other equipment 31,923 18,400 13,523 Licensed motor vehicles 18,298 14,888 3,410 Office and computer equipment 10,157 9,468 689 Land 7,168 — 7,168 Buildings 2,547 2,482 65 338,586 168,658 169,928 Assets under capital lease Heavy equipment 69,657 28,613 41,044 Major component parts in use 85,015 21,247 63,768 Other equipment 558 543 15 Licensed motor vehicles 5,129 1,242 3,887 Office and computer equipment 23 17 6 160,382 51,662 108,720 Total property, plant and equipment $ 498,968 $ 220,320 $ 278,648 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets are as follows: December 31, 2018 December 31, 2017 Long term prepaid lease payments $ 1,853 $ 1,779 Other long term receivable 619 — Intangible assets (note 10(b)) 2,916 938 Deferred financing costs (note 10(c)) 1,178 707 Deferred lease inducement asset (note 10(d)) 641 784 Loan to DNSS Partnership (note 13(b)) 689 969 Contract costs (note 19(f)) 2,308 422 $ 10,204 $ 5,599 |
Schedule of intangible assets | Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer contracts Straight-line 1 - 2 years Favourable land lease Straight-line 27 years Assembled workforce Straight-line 5 years Partnership relationship Straight-line 5 years Brand Straight-line 5 years December 31, 2018 Cost Accumulated amortization Net book value Internal-use software $ 11,925 $ 11,019 $ 906 Other intangible assets 2,010 — 2,010 $ 13,935 $ 11,019 $ 2,916 December 31, 2017 Cost Accumulated amortization Net book value Internal-use software $ 18,188 $ 17,250 $ 938 |
Schedule of estimated amortization expense for future years | The estimated amortization expense for future years is as follows: For the year ending December 31, 2019 $ 734 2020 664 2021 470 2022 439 2023 and thereafter 609 $ 2,916 |
Schedule of deferred finance costs | December 31, 2018 December 31, 2017 Cost $ 1,575 $ 821 Accumulated amortization 397 114 $ 1,178 $ 707 |
Schedule of deferred lease inducement assets | December 31, 2018 December 31, 2017 Balance, beginning of year $ 784 $ 927 Amortization (143 ) (143 ) Balance, end of year $ 641 $ 784 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of differences between tax provision and Federal and Provincial statutory income taxes | The reasons for the differences are as follows: Year ended December 31, 2018 2017 Income before income taxes $ 21,417 $ 6,468 Tax rate 27.00 % 27.00 % Expected expense $ 5,783 $ 1,746 (Decrease) increase related to: Income tax adjustments and reassessments — 30 Non taxable portion of capital gains (60 ) (672 ) Stock-based compensation 26 88 Other 347 12 Deferred income tax expense $ 6,096 $ 1,204 |
Schedule of deferred tax assets and liabilities | The deferred tax assets and liabilities are summarized below: December 31, 2018 December 31, 2017 Deferred tax assets: Non-capital and net capital loss carryforwards $ 24,478 $ 18,619 Deferred financing costs — 52 Contract liabilities 572 222 Capital lease obligations 23,207 17,961 Stock-based compensation 3,545 2,985 Other 2,538 2,357 Subtotal $ 54,340 $ 42,196 Less: valuation allowance (1,035 ) (1,035 ) $ 53,305 $ 41,161 Deferred tax liabilities: Contract assets $ 3,711 $ 5,231 Assets held for sale 116 1,523 Accounts receivable – holdbacks 96 72 Property, plant and equipment 84,811 61,953 Deferred financing costs 86 — $ 88,820 $ 68,779 Net deferred income tax liability $ 35,515 $ 27,618 Classified as: December 31, 2018 December 31, 2017 Deferred tax asset $ 9,272 $ 10,539 Deferred tax liability (44,787 ) (38,157 ) $ (35,515 ) $ (27,618 ) |
Schedule of non-capital losses for income tax purposes | At December 31, 2018 , the Company has a deferred tax asset of $ 23,443 resulting from non-capital loss carryforwards of $86,826 , which expire as follows: December 31, 2018 2025 $ 2 2026 151 2027 128 2031 605 2032 6,409 2033 5,893 2034 5,200 2036 2,207 2037 17,922 2038 48,309 $ 86,826 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | December 31, 2018 December 31, 2017 Accrued interest payable $ 972 $ 714 Payroll liabilities 15,360 8,828 Liabilities related to equipment leases 423 219 Dividends payable (note 18(d)) 500 510 Income and other taxes payable 1,749 2,007 Liabilities related to tire disposal 153 156 $ 19,157 $ 12,434 |
Investments in affiliates and_2
Investments in affiliates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table summarizes the investments of the NL Partnership, including the NL Partnership’s ownership interest therein: NL Partnership Interest Equity method investments: Kivalliq Services Ltd. (i) 33.33 % HRN Contracting Ltd. (ii) 33.33 % Proportionately consolidated investments: Amik Nuna Forestry Services 50.00 % Aroland Nuna 49.00 % Fond Du Lac Nuna 49.00 % Mahiikanuk Nuna 49.00 % Met Nuna 75.00 % Nuna Bauer 50.00 % EDC Nuna Contracting 70.00 % Attawapiskat Nuna 75.00 % Westarc Drilling & Blasting Joint Venture (iii) 30.00 % Consolidated investments: Deton Cho Nuna 60.00 % Nuna Deton Cho Winter Road Services 75.00 % Nuna Deton Cho Contracting 100.00 % |
Schedule of investments in affiliates and joint ventures | Assets Cash $ 10,939 Accounts receivable, net 13,234 Contract assets 3,089 Inventories 3,926 Prepaid expenses and deposits 304 31,492 Property, plant and equipment 15,962 Other assets 1,375 Investment in affiliates and joint ventures 11,728 Total Assets 60,557 Liabilities Accounts payable 10,604 Accrued liabilities 1,136 Contract liabilities 360 12,100 Long term debt (including current portion) 3,127 Capital lease obligation (including current portion) 542 Deferred tax liabilities 1,938 Total Liabilities 17,707 Net assets acquired $ 42,850 The following table summarizes the investments of the NL Partnership, including the NL Partnership’s ownership interest therein: NL Partnership Interest Equity method investments: Kivalliq Services Ltd. (i) 33.33 % HRN Contracting Ltd. (ii) 33.33 % Proportionately consolidated investments: Amik Nuna Forestry Services 50.00 % Aroland Nuna 49.00 % Fond Du Lac Nuna 49.00 % Mahiikanuk Nuna 49.00 % Met Nuna 75.00 % Nuna Bauer 50.00 % EDC Nuna Contracting 70.00 % Attawapiskat Nuna 75.00 % Westarc Drilling & Blasting Joint Venture (iii) 30.00 % Consolidated investments: Deton Cho Nuna 60.00 % Nuna Deton Cho Winter Road Services 75.00 % Nuna Deton Cho Contracting 100.00 % (i) Includes investment in MTKSL Contracting Joint Venture (ii) Includes investment in TDIC/HRN Contracting Joint Venture (iii) Includes investment in Westarc Drilling & Blasting Services Ltd. The following table summarizes the movement in the investments in affiliates and joint ventures balance during the year: December 31, 2018 December 31, 2017 Balance, beginning of the year $ — $ — Additions arising on acquisition 11,728 — Share of net income 60 — Balance, end of the year $ 11,788 $ — The financial information for the investments in affiliates and joint ventures accounted for using the equity method is summarized as follows: Balance Sheets December 31, December 31, Assets Current assets $ 9,769 $ — Non-current assets 2,392 — Total assets $ 12,161 $ — Liabilities Current liabilities $ 4,013 $ — Non-current liabilities 3,032 — Total liabilities $ 7,045 $ — Statement of Operations and Comprehensive Income Year ended December 31, 2018 2017 Revenues $ 1,771 $ — Gross profit 152 — Income before taxes 98 — Net income and comprehensive income $ 60 $ — |
Long term debt (Tables)
Long term debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | December 31, 2018 December 31, 2017 Cost $ 2,227 $ 2,133 Accumulated amortization 454 198 $ 1,773 $ 1,935 Long term debt amounts are as follows: Current: December 31, 2018 December 31, 2017 Credit facilities (note 14(b)) $ 1,167 $ — Mortgage (note 14(d)) 386 — Promissory notes 28,443 — $ 29,996 $ — Long term: December 31, 2018 December 31, 2017 Credit facilities (note 14(b)) $ 193,751 $ 32,000 Convertible Debentures (note 14(c)) 39,976 40,000 Mortgage (note 14(d)) 19,514 — Promissory notes 14,494 — Less: deferred financing costs (note 14(e)) (1,773 ) (1,935 ) $ 265,962 $ 70,065 |
Schedule of line of credit facilities | Credit Facility December 31, 2018 December 31, 2017 Current portion of Credit Facility $ — $ — Long term portion of Credit Facility 192,000 32,000 $ 192,000 $ 32,000 |
Capital lease obligations (Tabl
Capital lease obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of future minimum lease payments due under capital leases | The minimum lease payments due in each of the next five fiscal years are as follows: 2019 $ 33,886 2020 23,843 2021 15,115 2022 11,621 2023 6,308 Subtotal: $ 90,773 Less: amount representing interest (at rates ranging from 2.48% to 7.51%) (4,205 ) Carrying amount of minimum lease payments $ 86,568 Less: current portion (32,250 ) Long term portion $ 54,318 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments with carrying amounts that differ from fair values | Financial instruments with carrying amounts that differ from their fair values are as follows: December 31, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Fair Carrying Fair Capital lease obligations Level 2 $ 86,568 $ 78,373 $ 66,969 $ 61,872 Convertible Debentures Level 2 39,976 48,371 40,000 38,700 Credit facilities Level 3 194,918 194,918 32,000 32,000 Mortgage Level 2 19,900 19,900 — — Promissory notes Level 2 42,937 42,937 — — |
Schedule of non-financial assets measured at fair value on a non-recurring basis | Non-financial assets measured at estimated fair market value on a non-recurring basis as at December 31, 2018 and 2017 in the financial statements are summarized below: December 31, 2018 December 31, 2017 Change in Fair Value Carrying Amount Change in Fair Value Carrying Amount Assets held for sale $ (1,278 ) $ 672 $ (72 ) $ 5,642 |
Schedule of major customers | At December 31, 2018 and December 31, 2017 , the following customers represented 10% or more of accounts receivable and contract assets: December 31, 2018 December 31, 2017 Customer 1 33 % 42 % Customer 2 16 % 20 % Customer 3 12 % 10 % Customer 4 7 % 10 % Customer 5 4 % 12 % The following customers accounted for 10% or more of total revenues: Year ended December 31, 2018 2017 Customer A 43 % 44 % Customer B 23 % 26 % Customer C 21 % 17 % Customer D 9 % 11 % |
Schedule of maximum exposure to credit risk for accounts receivable and unbilled revenue | The Company’s maximum exposure to credit risk for accounts receivable and contract assets is as follows: December 31, 2018 December 31, 2017 Trade accounts receivable $ 67,913 $ 45,158 Holdbacks 558 558 Accrued trade receivables 9,807 — Other receivables 4,121 1,090 Total accounts receivable $ 82,399 $ 46,806 Contract assets 10,673 21,572 Total $ 93,072 $ 68,378 |
Schedule of trade receivables aging | As at December 31, 2018 and December 31, 2017 , trade receivables and holdbacks are aged as follows: December 31, 2018 December 31, 2017 Not past due $ 60,326 $ 42,882 Past due 1-30 days 6,649 2,566 Past due 31-60 days 728 — More than 61 days 768 268 Total $ 68,471 $ 45,716 |
Other long term obligations (Ta
Other long term obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other long term obligations | Other long term obligations are as follows: December 31, 2018 December 31, 2017 Deferred lease inducements liability (note 17(b)) $ 1,419 $ 10 Asset retirement obligation (note 17(c)) 818 744 Directors' deferred stock unit plan (note 22(e)) 13,413 5,672 Deferred gain on sale-leaseback (note 17(d)) 8,438 7,654 Provision for loss on sublease (note 17(e)) 1,535 — $ 25,623 $ 14,080 |
Schedule of changes in deferred lease inducements | December 31, 2018 December 31, 2017 Balance, beginning of year $ 10 $ 38 Addition 1,412 — Amortization of deferred lease inducements (3 ) (28 ) Balance, end of year $ 1,419 $ 10 |
Schedule of changes in asset retirement obligation | The following table presents a continuity of the liability for the asset retirement obligation: December 31, 2018 December 31, 2017 Balance, beginning of year $ 744 $ 678 Accretion expense 74 66 Balance, end of year $ 818 $ 744 |
Schedule of deferred gain on sale-leaseback | December 31, 2018 December 31, 2017 Balance, beginning of year $ 7,654 $ 3,199 Addition 2,262 5,155 Amortization of deferred gain on sale-leaseback (1,478 ) (700 ) Balance, end of year $ 8,438 $ 7,654 |
Shares (Tables)
Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of common shares | Issued and outstanding: Common shares Treasury shares Common shares outstanding, net of treasury shares Issued and outstanding at December 31, 2016 30,518,907 (2,213,247 ) 28,305,660 Issued upon exercise of stock options 176,800 — 176,800 Purchase of treasury shares for settlement of certain equity classified stock-based compensation — (758,271 ) (758,271 ) Settlement of certain equity classified stock-based compensation — 353,592 353,592 Retired through share purchase program (2,625,557 ) — (2,625,557 ) Issued and outstanding at December 31, 2017 28,070,150 (2,617,926 ) 25,452,224 Issued upon exercise of stock options 297,940 — 297,940 Issued upon conversion of convertible debentures 2,211 — 2,211 Purchase of treasury shares for settlement of certain equity classified stock-based compensation — (660,620 ) (660,620 ) Settlement of certain equity classified stock-based compensation — 1,193,935 1,193,935 Retired through share purchase program (1,281,485 ) — (1,281,485 ) Issued and outstanding at December 31, 2018 27,088,816 (2,084,611 ) 25,004,205 |
Schedule of net income per share | Year ended December 31, 2018 2017 Net income available to common shareholders $ 15,286 $ 5,264 Interest from Convertible Debentures (after tax) 1,792 — Diluted net income available to common shareholders $ 17,078 $ 5,264 Weighted average number of common shares 24,991,517 26,697,066 Weighted average effect of dilutive securities Dilutive effect of treasury shares 2,394,824 2,622,957 Dilutive effect of stock options 357,026 285,703 Dilutive effect of Convertible Debentures 3,684,424 — Weighted average number of diluted common shares 31,427,791 29,605,726 Basic net income per share $ 0.61 $ 0.20 Diluted net income per share $ 0.54 $ 0.18 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | In the following table, revenue is disaggregated by source, commercial terms and method of revenue recognition. Year ended December 31, 2018 2017 Revenue by source Construction services $ 42,481 $ 21,710 Operations support services 367,580 270,847 $ 410,061 $ 292,557 By commercial terms Time-and-materials $ 151,796 $ 97,588 Unit-price 253,277 191,041 Cost-plus 4,988 3,928 $ 410,061 $ 292,557 Revenue recognition method Cost-to-cost percent complete $ 186,741 $ 125,716 As-invoiced 223,320 166,841 $ 410,061 $ 292,557 b) Customer revenues |
Schedule of major customers | At December 31, 2018 and December 31, 2017 , the following customers represented 10% or more of accounts receivable and contract assets: December 31, 2018 December 31, 2017 Customer 1 33 % 42 % Customer 2 16 % 20 % Customer 3 12 % 10 % Customer 4 7 % 10 % Customer 5 4 % 12 % The following customers accounted for 10% or more of total revenues: Year ended December 31, 2018 2017 Customer A 43 % 44 % Customer B 23 % 26 % Customer C 21 % 17 % Customer D 9 % 11 % |
Contract balances | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: December 31, December 31, 2017 Contract receivables, included in accounts receivable, net $ 78,278 $ 45,716 Contract assets 10,673 21,572 Contract liabilities 4,032 824 The following table provides information about significant changes in the contract assets: Year ended December 31, 2018 2017 Transferred to receivables from contract assets recognized at the beginning of the period $ (14,701 ) $ (9,129 ) Increases as a result of changes to the estimate of the stage of completion, excluding amounts transferred in the period 2,043 6,183 Increases as a result of work completed, but not yet an unconditional right to consideration 409 8,554 Increases as a result of Nuna acquisition 1,350 — The following table provides information about significant changes in the contract liabilities: Year ended December 31, 2018 2017 Revenue recognized that was included in the contract liability balance at the beginning of the period $ (84 ) $ (347 ) Increases due to cash received, excluding amounts recognized as revenue during the period 1,379 100 Increases as a result of Nuna acquisition 1,913 — The following table provides information about revenue recognized from performance obligations that were satisfied (or partially satisfied) in previous periods: Year ended December 31, 2018 2017 Revenue recognized $ 2,516 $ 1,177 |
Estimated revenue expected to be recognized in the future related to performance obligations | The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period was $206,900 for 2019. Included is all consideration from contracts with customers, excluding amounts that are recognized using the as-invoiced method and any constrained amounts of revenue. |
Summary of contract costs | The following table summarizes contract costs included within other assets on the consolidated balance sheets. December 31, December 31, 2017 Reimbursable bid costs $ 670 $ 422 Fulfillment costs 1,638 — $ 2,308 $ 422 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating leases | The annual future minimum operating lease payments for premises for the next five years are as follows: For the year ending December 31, 2019 $ 6,003 2020 6,091 2021 6,091 2022 5,098 2023 and thereafter 12,382 $ 35,665 |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest Expense [Abstract] | |
Schedule of interest expense | Year ended December 31, 2018 2017 Interest on capital lease obligations $ 2,984 $ 3,023 Interest on credit facilities 2,729 1,507 Interest on Convertible Debentures 2,200 1,760 Interest on promissory notes 202 — Interest on mortgage 105 — Amortization of deferred financing costs (notes 10(c) and note 14(e)) 539 797 Interest on long term debt $ 8,759 $ 7,087 Other interest income (175 ) (144 ) $ 8,584 $ 6,943 During the year ended December 31, 2018 , $634 ( December 31, 2017 - $nil ) of interest was capitalized to property, plant and equipment in relation to a building construction in the year. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock-based compensation expenses included in general and administrative expenses | Stock-based compensation expenses included in general and administrative expenses are as follows: Year ended December 31, 2018 2017 Share option plan (note 22(b)) $ 97 $ 326 Equity classified restricted share unit plan (note 22(c)) 2,110 1,293 Equity performance restricted share unit plan (note 22(d)) 1,910 1,306 Liability classified deferred stock unit plan (note 22(e)) 7,415 1,070 $ 11,532 $ 3,995 |
Schedule of stock options activity | Number of options Weighted average Outstanding at December 31, 2016 1,176,080 5.56 Exercised (i) (176,800 ) 3.26 Forfeited or expired (85,740 ) 12.36 Outstanding at December 31, 2017 913,540 5.36 Exercised (i) (297,940 ) 3.43 Forfeited or expired (50,000 ) 16.46 Outstanding at December 31, 2018 565,600 5.40 (i) All stock options exercised resulted in new common shares being issued (note 18(a)) . |
Summary of information about stock options outstanding | The following table summarizes information about stock options outstanding at December 31, 2018 : Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted Weighted $2.75 90,100 3.7 years $ 2.75 90,100 3.7 years $ 2.75 $2.79 162,000 3.5 years $ 2.79 162,000 3.5 years $ 2.79 $5.91 123,680 5.0 years $ 5.91 123,680 5.0 years $ 5.91 $6.56 54,880 2.9 years $ 6.56 54,880 2.9 years $ 6.56 $8.28 10,000 0.5 years $ 8.28 10,000 0.5 years $ 8.28 $8.58 30,000 1.7 years $ 8.58 30,000 1.7 years $ 8.58 $9.33 48,680 1.1 years $ 9.33 48,680 1.1 years $ 9.33 $10.13 46,260 2.0 years $ 10.13 46,260 2.0 years $ 10.13 565,600 3.3 years $ 5.40 565,600 3.3 years $ 5.40 |
Schedule of performance restricted share units | Number of units Weighted average exercise price Outstanding at December 31, 2016 739,300 4.84 Granted 248,824 5.98 Vested (69,949 ) 8.57 Forfeited (21,542 ) 4.05 Outstanding at December 31, 2017 896,633 4.81 Granted 197,763 8.01 Vested (353,279 ) 4.27 Outstanding at December 31, 2018 741,117 5.92 |
Schedule of assumptions used in estimate of fair value | The Company estimated the fair value of the PSUs granted during the years ended December 31, 2018 and 2017 using a Monte Carlo simulation with the following assumptions: 2018 2017 Risk-free interest rate 1.98 % 1.17 % Expected volatility 45.04 % 46.47 % |
Schedule of stock plan activity | Number of units Outstanding at December 31, 2016 941,937 Granted 114,895 Redeemed (65,249 ) Outstanding at December 31, 2017 991,583 Granted 134,656 Outstanding at December 31, 2018 1,126,239 |
Equity classified restricted share unit plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted share unit plan activity | Number of units Weighted average exercise price Outstanding at December 31, 2016 1,123,975 4.20 Granted 355,292 6.02 Vested (259,860 ) 6.24 Forfeited (29,474 ) 4.00 Outstanding at December 31, 2017 1,189,933 4.22 Granted 266,196 8.02 Vested (487,376 ) 3.01 Forfeited (20,660 ) 5.45 Outstanding at December 31, 2018 948,093 8.98 |
Other information (Tables)
Other information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Year ended December 31, 2018 2017 Cash paid during the year for: Interest $ 9,258 $ 5,615 Cash received during the year for: Interest 41 162 |
Schedule of non-cash transactions | Year ended December 31, 2018 2017 Non-cash transactions: Addition of property, plant and equipment by means of capital leases 49,440 34,730 Property, plant and equipment reclassified to asset held for sale (53 ) (6,869 ) Increase in capital lease obligations related to purchase of heavy equipment fleet and related assets 1,759 — Increase in capital lease obligations related to investment in affiliates and joint ventures 542 — Increase in capital lease obligations related to the initial investment in the partnership — 800 Increase in equipment promissory notes related to purchase of heavy equipment fleet and related assets 10,851 — Acquisition of property, plant and equipment related to the initial investment in the partnership — 2,581 Increase in long term debt related to the initial investment in the partnership — 637 Increase in long term debt related to investment in affiliates and joint ventures 3,127 — Non-cash working capital exclusions: Decrease in contract assets related to adoption of accounting standards (547 ) — Increase in inventory related to the initial partnership investment — 29 Increase in inventory related to the purchase of heavy equipment fleet and related assets 4,268 — Increase in prepaid expenses related to the initial investment in the partnership — 4 Increase in other assets related to adoption of accounting standards 502 — Increase in accrued liabilities related to the current portion of the deferred gain on sale-leaseback — (859 ) Decrease in accrued liabilities related to conversion of bonus compensation to deferred stock units 326 — Decrease in accrued liabilities related to dividend payable 10 59 Non-cash working capital transactions related to investments in affiliates and joint ventures: Increase in accounts receivable 13,234 — Increase in contract assets 3,089 — Increase in inventory 3,926 — Increase in prepaid expenses 399 — Increase in accounts payable (10,604 ) — Increase in accrued liabilities (1,136 ) — Increase in contract liabilities (360 ) — |
Schedule of net change in non-cash working capital | The table below represents the cash (used in) provided by non-cash working capital: Year ended December 31, 2018 2017 Operating activities: Accounts receivable $ (22,359 ) $ (7,148 ) Contract assets 13,441 (5,607 ) Inventories (443 ) (1,288 ) Contract costs (1,384 ) — Prepaid expenses and deposits (1,513 ) (283 ) Accounts payable 17,665 5,640 Accrued liabilities 5,923 1,904 Contract liabilities 2,848 (247 ) $ 14,178 $ (7,029 ) |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table provides the total dollar amount for income statement transactions that have been entered into with related parties during the year ended December 31, 2018 : Revenue Management fee revenue Interest revenue Distributions Rent expense NL Partnership $ 41 $ (7 ) $ 12 $ — $ — Affiliates 636 352 56 (102 ) 38 The following table provides the balance sheet balances with related parties as at December 31, 2018 : Accounts receivable Accounts payable and accrued liabilities NL Partnership $ 2,355 $ — Affiliates 719 13 |
Significant accounting polici_4
Significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Heavy equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3000 hours |
Heavy equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 120000 hours |
Major component parts in use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3000 hours |
Major component parts in use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 50000 hours |
Other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Licensed motor vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Licensed motor vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Office and computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furnishings, fixtures and facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Furnishings, fixtures and facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 50 years |
Significant accounting polici_5
Significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Internal-use software | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 4 years |
Customer contracts | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 1 year |
Customer contracts | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 2 years |
Favourable land lease | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 27 years |
Assembled workforce | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Partnership relationship | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Brand | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Significant accounting polici_6
Significant accounting policies - Stock-based compensation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of trading days used to determine weighted average trading price of common shares | 30 days |
Restricted Share Unit (RSU) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award service period | 2 years |
Award vesting period | 3 years |
Compensation expense recognition period | 3 years |
Phantom Share Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Compensation expense recognition period | 3 years |
Accounting pronouncements rec_3
Accounting pronouncements recently adopted - Schedule of Effects of Adopting New Revenue Standard (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Current assets | |||
Accounts receivable, net (notes 6 and 19(c)) | $ 82,399 | $ 46,806 | |
Contract assets | 10,673 | 21,572 | |
Unbilled revenue | 9,807 | 0 | |
Total current assets | 130,379 | 88,858 | |
Other assets (note 10) | 10,204 | 5,599 | |
Investments in affiliates and joint ventures (note 13(a)) | 11,788 | 0 | |
Total Assets | 689,800 | 383,644 | |
Current liabilities | |||
Contract liabilities | 4,032 | 824 | |
Billings in excess of costs incurred and estimated earnings on uncompleted contracts | 0 | ||
Total current liabilities | 148,895 | 77,585 | |
Deferred tax liabilities (note 11) | 44,787 | 38,157 | |
Total Liabilities | 539,585 | 237,720 | |
Shareholders' Equity | |||
Deficit | (113,917) | (127,162) | |
Shareholders' equity attributable to common shareholders | 149,721 | 145,924 | |
Total Liabilities and Equity | 689,800 | 383,644 | |
Revenue (note 19) | 410,061 | 292,557 | |
Project costs | 152,943 | 116,346 | |
Gross profit | 69,076 | 39,647 | |
Operating income before the undernoted | 29,980 | 13,407 | |
Share of total comprehensive income | (60) | 0 | |
Income before income taxes | 21,417 | 6,468 | |
Comprehensive income | 15,321 | 5,264 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | 15,321 | 5,264 | |
Deferred income tax expense (note 11) | 6,096 | 1,204 | |
Net changes in non-cash working capital (note 23(b)) | 14,178 | (7,029) | |
Total operating activities | 109,371 | 49,745 | |
Increase (decrease) in cash | 11,322 | $ (5,480) | |
Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Adoption of accounting standards (note 3(a)) | $ (45) | ||
Adjustments | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Adoption of accounting standards (note 3(a)) | $ (45) | ||
Current assets | |||
Accounts receivable, net (notes 6 and 19(c)) | (9,809) | ||
Contract assets | (10,673) | ||
Unbilled revenue | 22,421 | ||
Total current assets | 1,939 | ||
Other assets (note 10) | (1,636) | ||
Investments in affiliates and joint ventures (note 13(a)) | 168 | ||
Total Assets | 471 | ||
Current liabilities | |||
Contract liabilities | (4,032) | ||
Billings in excess of costs incurred and estimated earnings on uncompleted contracts | 4,032 | ||
Total current liabilities | 0 | ||
Deferred tax liabilities (note 11) | 127 | ||
Total Liabilities | 127 | ||
Shareholders' Equity | |||
Deficit | 344 | ||
Shareholders' equity attributable to common shareholders | 344 | ||
Total Liabilities and Equity | 471 | ||
Revenue (note 19) | 1,940 | ||
Project costs | 1,637 | ||
Gross profit | 303 | ||
Operating income before the undernoted | 303 | ||
Share of total comprehensive income | (168) | ||
Income before income taxes | 471 | ||
Comprehensive income | 344 | ||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | 344 | ||
Deferred income tax expense (note 11) | 127 | ||
Net changes in non-cash working capital (note 23(b)) | (471) | ||
Total operating activities | 0 | ||
Increase (decrease) in cash | 0 | ||
Balances without adoption of Topic 606 | |||
Current assets | |||
Accounts receivable, net (notes 6 and 19(c)) | 72,590 | ||
Contract assets | 0 | ||
Unbilled revenue | 22,421 | ||
Total current assets | 132,318 | ||
Other assets (note 10) | 8,568 | ||
Investments in affiliates and joint ventures (note 13(a)) | 11,956 | ||
Total Assets | 690,271 | ||
Current liabilities | |||
Contract liabilities | 0 | ||
Billings in excess of costs incurred and estimated earnings on uncompleted contracts | 4,032 | ||
Total current liabilities | 148,895 | ||
Deferred tax liabilities (note 11) | 44,914 | ||
Total Liabilities | 539,712 | ||
Shareholders' Equity | |||
Deficit | (113,573) | ||
Shareholders' equity attributable to common shareholders | 150,065 | ||
Total Liabilities and Equity | 690,271 | ||
Revenue (note 19) | 412,001 | ||
Project costs | 154,580 | ||
Gross profit | 69,379 | ||
Operating income before the undernoted | 30,283 | ||
Share of total comprehensive income | (228) | ||
Income before income taxes | 21,888 | ||
Comprehensive income | 15,665 | ||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | 15,665 | ||
Deferred income tax expense (note 11) | 6,223 | ||
Net changes in non-cash working capital (note 23(b)) | 13,707 | ||
Total operating activities | 109,371 | ||
Increase (decrease) in cash | $ 11,322 |
Acquisitions - Investments in a
Acquisitions - Investments in affiliates and joint ventures (Details) - CAD ($) $ in Thousands | Nov. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Payment to sellers | $ 11,728 | $ 0 | |
Nuna Logistics Limited | |||
Schedule of Equity Method Investments [Line Items] | |||
Payment to sellers | $ 41,500 | ||
Transaction costs | $ 1,300 | ||
Ownership percentage | 49.00% | ||
Current assets | |||
Cash | $ 10,939 | ||
Accounts receivable, net | 13,234 | ||
Contract assets | 3,089 | ||
Inventories | 3,926 | ||
Prepaid expenses and deposits | 304 | ||
Current assets | 31,492 | ||
Property, plant and equipment | 15,962 | ||
Other assets | 1,375 | ||
Investment in affiliates and joint ventures | 11,728 | ||
Total Assets | 60,557 | ||
Liabilities | |||
Accounts payable | 10,604 | ||
Accrued liabilities | 1,136 | ||
Contract liabilities | 360 | ||
Current portion of long term debt | 0 | ||
Current portion of capital lease obligations | 0 | ||
Current liabilities | 12,100 | ||
Long term debt | 3,127 | ||
Capital lease obligation | 542 | ||
Deferred tax liabilities | 1,938 | ||
Total Liabilities | 17,707 | ||
Net assets acquired | $ 42,850 | ||
Nuna Logistics Limited | Kitikmeot Corporation | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 51.00% | ||
Nuna East Ltd. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 37.25% | ||
Nuna Pang Contracting Ltd. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 37.25% | ||
Nuna West Mining Ltd. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% | ||
Nuna Logistics Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% |
Acquisitions - Heavy constructi
Acquisitions - Heavy construction fleet and related assets (Details) $ in Thousands | Nov. 23, 2018CAD ($)installment | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) |
Schedule of Asset Acquisition [Line Items] | |||
Payments for asset acquisitions | $ 151,180 | $ 0 | |
Acquisition Of Aecon Construction Group Inc.'s Heavy Construction Equipment Fleet And Related Assets | |||
Schedule of Asset Acquisition [Line Items] | |||
Payments for asset acquisitions | $ 198,000 | ||
Initial payment | 150,800 | ||
Capital leases and equipment related promissory notes | $ 12,600 | ||
Number of installment payments | installment | 3 | ||
Transaction costs | $ 400 |
Accounts receivable (Details)
Accounts receivable (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Trade | $ 67,913 | $ 45,158 |
Holdbacks | 558 | 558 |
Accrued trade receivables | 9,807 | 0 |
Contract receivables (note 19(c)) | 78,278 | 45,716 |
Other | 4,121 | 1,090 |
Total accounts receivable | $ 82,399 | $ 46,806 |
Accounts receivable – holdback percentage | 10.00% |
Prepaid expenses and deposits_2
Prepaid expenses and deposits (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current: | ||
Prepaid insurance and deposits | $ 1,149 | $ 844 |
Prepaid interest payments | 826 | 85 |
Current portion of prepaid lease payments | 1,761 | 969 |
Prepaid expenses and deposits | $ 3,736 | $ 1,898 |
Assets held for sale (Details)
Assets held for sale (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Assets held for sale | $ 5,642 | $ 672 |
Disposal group, held-for-sale, not discontinued operations | ||
Property, Plant and Equipment [Line Items] | ||
Assets held for sale | 5,642 | $ 672 |
Impairment of equipment assets held for sale | $ 1,621 |
Property. plant and equipment (
Property. plant and equipment (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | $ 597,039 | $ 338,586 |
Owned assets, accumulated depreciation | 195,412 | 168,658 |
Owned assets, net book value | 401,627 | 169,928 |
Assets under capital lease, cost | 180,003 | 160,382 |
Assets under capital lease, accumulated depreciation | 53,473 | 51,662 |
Assets under capital lease, net book value | 126,530 | 108,720 |
Total plant and equipment, cost | 777,042 | 498,968 |
Total accumulated depreciation | 248,885 | 220,320 |
Total plant and equipment, net book value | 528,157 | 278,648 |
Addition of property, plant and equipment by means of capital leases | 21,904 | 14,033 |
Sale leaseback transactions | 29,295 | 20,697 |
Heavy equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 346,071 | 196,045 |
Owned assets, accumulated depreciation | 78,296 | 77,726 |
Owned assets, net book value | 267,775 | 118,319 |
Assets under capital lease, cost | 110,759 | 69,657 |
Assets under capital lease, accumulated depreciation | 35,376 | 28,613 |
Assets under capital lease, net book value | 75,383 | 41,044 |
Major component parts in use | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 143,032 | 72,448 |
Owned assets, accumulated depreciation | 66,019 | 45,694 |
Owned assets, net book value | 77,013 | 26,754 |
Assets under capital lease, cost | 64,602 | 85,015 |
Assets under capital lease, accumulated depreciation | 16,964 | 21,247 |
Assets under capital lease, net book value | 47,638 | 63,768 |
Other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 33,824 | 31,923 |
Owned assets, accumulated depreciation | 21,711 | 18,400 |
Owned assets, net book value | 12,113 | 13,523 |
Assets under capital lease, cost | 772 | 558 |
Assets under capital lease, accumulated depreciation | 17 | 543 |
Assets under capital lease, net book value | 755 | 15 |
Licensed motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 19,745 | 18,298 |
Owned assets, accumulated depreciation | 15,618 | 14,888 |
Owned assets, net book value | 4,127 | 3,410 |
Assets under capital lease, cost | 3,822 | 5,129 |
Assets under capital lease, accumulated depreciation | 1,087 | 1,242 |
Assets under capital lease, net book value | 2,735 | 3,887 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 8,972 | 10,157 |
Owned assets, accumulated depreciation | 6,450 | 9,468 |
Owned assets, net book value | 2,522 | 689 |
Assets under capital lease, cost | 23 | 23 |
Assets under capital lease, accumulated depreciation | 23 | 17 |
Assets under capital lease, net book value | 0 | 6 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 11,095 | 7,168 |
Owned assets, net book value | 11,095 | 7,168 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 31,425 | 2,547 |
Owned assets, accumulated depreciation | 6,265 | 2,482 |
Owned assets, net book value | 25,160 | 65 |
Assets under capital lease, cost | 25 | |
Assets under capital lease, accumulated depreciation | 6 | |
Assets under capital lease, net book value | 19 | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 2,875 | |
Owned assets, accumulated depreciation | 1,053 | |
Owned assets, net book value | 1,822 | |
Assets held under capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 25,995 | $ 19,483 |
Other assets - Schedule of othe
Other assets - Schedule of other assets (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Long term prepaid lease payments | $ 1,853 | $ 1,779 | |
Other long term receivable | 619 | 0 | |
Intangible assets | 2,916 | 938 | |
Deferred financing costs | 1,178 | 707 | |
Deferred lease inducement assets | 641 | 784 | $ 927 |
Loan to DNSS | 689 | 969 | |
Contract costs | 2,308 | 422 | |
Total other assets, noncurrent | $ 10,204 | $ 5,599 |
Other assets - Intangible asset
Other assets - Intangible assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 13,935 | |
Accumulated Amortization | 11,019 | |
Net book value | 2,916 | $ 938 |
Amortization of intangible assets | 412 | 918 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | 734 | |
2,020 | 664 | |
2,021 | 470 | |
2,022 | 439 | |
2023 and thereafter | 609 | |
Net book value | 2,916 | 938 |
Internal-use software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 11,925 | 18,188 |
Accumulated Amortization | 11,019 | 17,250 |
Net book value | 906 | 938 |
Fully amortized intangible asset disposed during the period | 6,643 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net book value | 906 | $ 938 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,010 | |
Accumulated Amortization | 0 | |
Net book value | 2,010 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net book value | $ 2,010 |
Other assets - Deferred financi
Other assets - Deferred financing costs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred financing costs [Abstract] | ||
Cost | $ 1,575 | $ 821 |
Accumulated Amortization | 397 | 114 |
Net Book Value | 1,178 | 707 |
Payments of financing fees | 848 | 2,982 |
Amortization of deferred financing costs | 539 | 797 |
Revolver | ||
Deferred financing costs [Abstract] | ||
Payments of financing fees | 754 | 840 |
Amortization of deferred financing costs | $ 283 | $ 453 |
Other assets - Deferred lease i
Other assets - Deferred lease inducements asset (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Lease Inducements Asset [Roll Forward] | ||
Balance, beginning of year | $ 784 | $ 927 |
Amortization | (143) | (143) |
Balance, end of year | $ 641 | $ 784 |
Income taxes - Expense (benefit
Income taxes - Expense (benefit) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 21,417 | $ 6,468 |
Tax rate | 27.00% | 27.00% |
Expected expense | $ 5,783 | $ 1,746 |
(Decrease) increase related to: | ||
Income tax adjustments and reassessments | 0 | 30 |
Non taxable portion of capital gains | (60) | (672) |
Stock-based compensation | 26 | 88 |
Other | 347 | 12 |
Deferred income tax expense | $ 6,096 | $ 1,204 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Non-capital and net capital loss carryforwards | $ 24,478 | $ 18,619 |
Deferred financing costs | 0 | 52 |
Contract liabilities | 572 | 222 |
Capital lease obligations | 23,207 | 17,961 |
Stock-based compensation | 3,545 | 2,985 |
Other | 2,538 | 2,357 |
Subtotal | 54,340 | 42,196 |
Less: valuation allowance | (1,035) | (1,035) |
Deferred tax assets, net of valuation allowance | 53,305 | 41,161 |
Deferred tax liabilities: | ||
Contract assets | 3,711 | 5,231 |
Assets held for sale | 116 | 1,523 |
Accounts receivable – holdbacks | 96 | 72 |
Property, plant and equipment | 84,811 | 61,953 |
Deferred financing costs | 86 | 0 |
Deferred tax liabilities, gross | 88,820 | 68,779 |
Net deferred income tax liability | 35,515 | 27,618 |
Classified as: | ||
Deferred tax asset | 9,272 | 10,539 |
Deferred tax liability | (44,787) | (38,157) |
Net deferred income tax liability | $ (35,515) | $ (27,618) |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($)provincial_jurisdiction | Dec. 31, 2017CAD ($)provincial_jurisdiction | |
Income Tax Disclosure [Abstract] | ||
Number of provincial jurisdictions | provincial_jurisdiction | 1 | 1 |
Deferred tax assets, non-capital operating loss carryforwards | $ 23,443 | |
Non-capital losses for income tax purposes | 86,826 | |
Valuation allowance, amount | 1,035 | $ 1,035 |
Operating loss carryforwards, not subject to expiration | $ 7,664 |
Income taxes - Expiration of no
Income taxes - Expiration of non-capital losses for income tax purposes (Details) $ in Thousands | Dec. 31, 2018CAD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 86,826 |
2,025 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 2 |
2,026 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 151 |
2,027 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 128 |
2,031 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 605 |
2,032 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 6,409 |
2,033 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 5,893 |
2,034 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 5,200 |
2,036 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 2,207 |
2,037 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 17,922 |
2,038 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 48,309 |
Accrued liabilities (Details)
Accrued liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued interest payable | $ 972 | $ 714 |
Payroll liabilities | 15,360 | 8,828 |
Liabilities related to equipment leases | 423 | 219 |
Dividends payable (note 18(d)) | 500 | 510 |
Income and other taxes payable | 1,749 | 2,007 |
Liabilities related to tire disposal | 153 | 156 |
Accrued liabilities | $ 19,157 | $ 12,434 |
Investments in affiliates and_3
Investments in affiliates and joint ventures - Ownership Percentages (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Kivalliq Services Ltd. | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in equity method investments | 33.33% |
HRN Contracting Ltd. | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in equity method investments | 33.33% |
Amik Nuna Forestry Services | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 50.00% |
Aroland Nuna | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 49.00% |
Fond Du Lac Nuna | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 49.00% |
Mahiikanuk Nuna | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 49.00% |
Met Nuna | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 75.00% |
Nuna Bauer | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 50.00% |
EDC Nuna Contracting | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 70.00% |
Attawapiskat Nuna | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 75.00% |
Westarc Drilling & Blasting Services Ltd. | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 30.00% |
Deton Cho Nuna | Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 60.00% |
Nuna Deton Cho Winter Road Services | Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 75.00% |
Nuna Deton Cho Contracting | Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 100.00% |
Investments in affiliates and_4
Investments in affiliates and joint ventures - Summary of Movement in Investments In Affiliates and Joint Ventures (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investment, Financial Statement, Reported Amounts [Roll Forward] | ||
Balance, beginning of the year | $ 0 | $ 0 |
Additions arising on acquisition | 11,728 | 0 |
Share of net income | 60 | 0 |
Balance, end of the year | $ 11,788 | $ 0 |
Investments in affiliates and_5
Investments in affiliates and joint ventures - Balance Sheets (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Current assets | $ 9,769 | $ 0 |
Non-current assets | 2,392 | 0 |
Total assets | 12,161 | 0 |
Liabilities | ||
Current liabilities | 4,013 | 0 |
Non-current liabilities | 3,032 | 0 |
Total liabilities | $ 7,045 | $ 0 |
Investments in affiliates and_6
Investments in affiliates and joint ventures - Statements of Operations and Comprehensive Income (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Revenues | $ 1,771,000 | $ 0 |
Gross profit | 152,000 | 0 |
Income before taxes | 98,000 | 0 |
Net income | 60,000 | 0 |
Comprehensive income | $ 60,000 | $ 0 |
Investments in affiliates and_7
Investments in affiliates and joint ventures - Narrative (Details) - Variable Interest Entity, Not Primary Beneficiary | 12 Months Ended |
Dec. 31, 2018 | |
Dene North Site Services Partnership | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 49.00% |
Mikisew North American Limited Partnership | |
Variable Interest Entity [Line Items] | |
NL Partnership Interest in VIEs | 49.00% |
Long term debt - Schedule of Lo
Long term debt - Schedule of Long Term Debt (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt, Current Maturities [Abstract] | ||
Current portion of long term debt | $ 29,996 | $ 0 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Less: deferred financing costs (note 14(e)) | (1,773) | (1,935) |
Long-term portion of debt | 265,962 | 70,065 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,019 | 29,200 | |
2,020 | 14,600 | |
2,021 | 500 | |
2,022 | 500 | |
2023 and thereafter | 500 | |
Credit facilities | ||
Long-term Debt, Current Maturities [Abstract] | ||
Current portion of long term debt | 1,167 | 0 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross, non-current | 193,751 | 32,000 |
Mortgage | ||
Long-term Debt, Current Maturities [Abstract] | ||
Current portion of long term debt | 386 | 0 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross, non-current | 19,514 | 0 |
Convertible debentures | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross, non-current | 39,976 | 40,000 |
Promissory notes | ||
Long-term Debt, Current Maturities [Abstract] | ||
Current portion of long term debt | 28,443 | 0 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross, non-current | 14,494 | 0 |
Credit facility | Credit facilities | ||
Long-term Debt, Current Maturities [Abstract] | ||
Current portion of long term debt | 0 | 0 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term portion of debt | $ 192,000 | $ 32,000 |
Long term debt - Schedule of Cr
Long term debt - Schedule of Credit Facilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long term debt | $ 29,996 | $ 0 |
Long-term portion of debt | 265,962 | 70,065 |
Credit facilities | ||
Debt Instrument [Line Items] | ||
Current portion of long term debt | 1,167 | 0 |
Credit facilities | Credit facility | ||
Debt Instrument [Line Items] | ||
Current portion of long term debt | 0 | 0 |
Long-term portion of debt | 192,000 | 32,000 |
Total debt | 192,000 | 32,000 |
Credit facilities | Nuna Credit Facility | ||
Debt Instrument [Line Items] | ||
Current portion of long term debt | 1,167 | 0 |
Long-term portion of debt | 1,751 | 0 |
Total debt | $ 2,918 | $ 0 |
Long term debt - Credit Facilit
Long term debt - Credit Facility Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2018CAD ($)convenant | Dec. 31, 2017CAD ($) | Dec. 08, 2018CAD ($) | Nov. 23, 2018CAD ($) | Aug. 01, 2017CAD ($) | |
Line of Credit Facility [Line Items] | |||||
Payments of financing fees | $ 848,000 | $ 2,982,000 | |||
Revolver | |||||
Line of Credit Facility [Line Items] | |||||
Payments of financing fees | 754,000 | 840,000 | |||
Credit facility | Revolver | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 300,000,000 | $ 140,000,000 | |||
Additional borrowing limit | 50,000,000 | 25,000,000 | |||
Capital lease borrowing limit | 150,000,000 | $ 100,000,000 | |||
Other outstanding debt limit | 20,000,000 | ||||
Amount outstanding during period | $ 900,000 | 800,000 | |||
Number of financial covenants | convenant | 2 | ||||
Senior leverage ratio, rental revenue | $ 1,800,000 | ||||
Unused borrowing availability under the revolving facility | $ 107,100,000 | $ 107,200,000 | |||
Senior leverage ratio | 4 | 3 | |||
Senior leverage ratio, step-up | 0.50 | ||||
Fixed charge ratio | 1.15 | 1.15 | |||
Credit facility | Revolver | Minimum | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Standby fees percentage | 0.35% | ||||
Credit facility | Revolver | Maximum | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Standby fees percentage | 0.70% | ||||
Credit facility | Letter of Credit | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 25,000,000 | $ 25,000,000 | |||
Nuna Credit Facility | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Number of financial covenants | 3 | ||||
Nuna Credit Facility - Operating Loan Facility | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 5,000,000 | ||||
Unused borrowing availability under the revolving facility | $ 5,000,000 | ||||
Nuna Credit Facility - Non-Revolving Reducing Loan Facility | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | 3,100,000 | ||||
Nuna Credit Facility - Equipment Facility | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | 5,500,000 | ||||
Amount outstanding during period | $ 2,900,000 | ||||
Debt instrument, term | 60 months | ||||
Debt Covenant Period, Tranche One | Credit facility | Revolver | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Senior leverage ratio | 3.50 | ||||
Debt Covenant Period, Tranche Two | Credit facility | Revolver | Credit facilities | |||||
Line of Credit Facility [Line Items] | |||||
Senior leverage ratio | 3 |
Long term debt - Convertible De
Long term debt - Convertible Debenture (Details) - Convertible debentures | Mar. 15, 2017CAD ($)$ / shares |
Debt Instrument [Line Items] | |
Face amount of long term debt | $ | $ 40,000,000 |
Conversion interest rate | 5.50% |
Conversion price (in CAD per share) | $ / shares | $ 10.85 |
Conversion ratio | 0.0921659 |
Threshold percentage of share price for conversion | 125.00% |
Redemption price as a percentage of the principal amount | 101.00% |
Long term debt - Mortgage (Deta
Long term debt - Mortgage (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Payments of financing fees | $ 848,000 | $ 2,982,000 | |
Mortgage | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 25 years | ||
Face amount of long term debt | $ 19,900,000 | ||
Interest rate period | 5 years | ||
Stated interest rate | 4.80% | ||
Payments of financing fees | $ 94,000 |
Long term debt - Schedule of Pr
Long term debt - Schedule of Promissory Notes (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long term debt | $ 29,996 | $ 0 |
Long-term portion of debt | 265,962 | 70,065 |
Promissory notes | ||
Debt Instrument [Line Items] | ||
Current portion of long term debt | $ 28,443 | $ 0 |
Long term debt - Promissory Not
Long term debt - Promissory Notes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Payments of financing fees | $ 848 | $ 2,982 |
Long term debt - Deferred Finan
Long term debt - Deferred Financing (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Cost | $ 2,227 | $ 2,133 |
Accumulated amortization | 454 | 198 |
Net Book Value | 1,773 | 1,935 |
Payments of financing fees | 848 | 2,982 |
Amortization of deferred financing costs | 539 | 797 |
Mortgage | ||
Debt Instrument [Line Items] | ||
Payments of financing fees | 94 | |
Amortization of deferred financing costs | $ 256 | $ 344 |
Capital lease obligations (Deta
Capital lease obligations (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 33,886 | |
2,020 | 23,843 | |
2,021 | 15,115 | |
2,022 | 11,621 | |
2,023 | 6,308 | |
Subtotal: | 90,773 | |
Less: amount representing interest (at rates ranging from 2.48% to 7.51%) | (4,205) | |
Carrying amount of minimum lease payments | 86,568 | |
Less: current portion | (32,250) | $ (29,136) |
Long term portion | $ 54,318 | $ 37,833 |
Minimum | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Capital lease interest rate | 2.48% | |
Maximum | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Capital lease interest rate | 7.51% |
Financial instruments and ris_3
Financial instruments and risk management - Financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Level 2 | Carrying Amount | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Capital lease obligations | $ 86,568 | $ 66,969 |
Long-term debt | 39,976 | 40,000 |
Level 2 | Carrying Amount | Mortgage | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 19,900 | 0 |
Level 2 | Fair Value | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Capital lease obligations | 78,373 | 61,872 |
Long-term debt | 48,371 | 38,700 |
Level 2 | Fair Value | Mortgage | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 19,900 | 0 |
Level 3 | Carrying Amount | Credit facilities | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 194,918 | 32,000 |
Level 3 | Fair Value | Credit facilities | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 194,918 | 32,000 |
Equipment promissory note | Level 2 | Carrying Amount | Promissory notes | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 42,937 | 0 |
Equipment promissory note | Level 2 | Fair Value | Promissory notes | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | $ 42,937 | $ 0 |
Financial instruments and ris_4
Financial instruments and risk management - Assets held-for-sale (Details) - Non-recurring basis - Level 3 - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 672 | $ 5,642 |
Change in Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ (1,278) | $ (72) |
Financial instruments and ris_5
Financial instruments and risk management - Risk management (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer 1 | Accounts receivable and contract assets | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 33.00% | 42.00% |
Customer 2 | Accounts receivable and contract assets | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.00% | 20.00% |
Customer 3 | Accounts receivable and contract assets | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | 10.00% |
Customer 4 | Accounts receivable and contract assets | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.00% | 10.00% |
Customer 5 | Accounts receivable and contract assets | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 4.00% | 12.00% |
Credit facilities | ||
Concentration Risk [Line Items] | ||
Outstanding balance, long-term debt | $ 194.9 | $ 32 |
Corresponding change in annual interest expense | $ 1.9 | |
Basis on variable rate, adjustment | 1.00% |
Financial instruments and ris_6
Financial instruments and risk management - Maximum credit exposure (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Trade accounts receivable | $ 67,913 | $ 45,158 |
Holdbacks | 558 | 558 |
Other receivables | 4,121 | 1,090 |
Accrued trade receivables | 9,807 | 0 |
Total accounts receivable | 82,399 | 46,806 |
Contract assets | 10,673 | 21,572 |
Total | $ 93,072 | $ 68,378 |
Financial instruments and ris_7
Financial instruments and risk management - Trade receivables (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Not past due | $ 60,326,000 | $ 42,882,000 |
Past due 1-30 days | 6,649,000 | 2,566,000 |
Past due 31-60 days | 728,000 | 0 |
More than 61 days | 768,000 | 268,000 |
Total | 68,471,000 | 45,716,000 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment terms | 15 days | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment terms | 60 days |
Other long term obligations - S
Other long term obligations - Schedule of other long term obligations (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred lease inducements liability (note 17(b)) | $ 1,419 | $ 10 | |
Asset retirement obligation (note 17(c)) | 818 | 744 | $ 678 |
Directors' deferred stock unit plan (note 22(e)) | 13,413 | 5,672 | |
Deferred gain on sale-leaseback (note 17(d)) | 8,438 | 7,654 | 3,199 |
Provision for loss on sublease (note 17(e)) | 1,535 | 0 | $ 0 |
Other long term obligations | $ 25,623 | $ 14,080 |
Other long term obligations - O
Other long term obligations - Other liabilities and obligations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred lease inducements liability [Roll Forward] | ||||
Balance, beginning of year | $ 10 | $ 38 | ||
Addition | 1,412 | 0 | ||
Amortization of deferred lease inducements | (3) | (28) | ||
Balance, end of year | 10 | 38 | $ 1,419 | $ 10 |
Asset retirement obligation [Roll Forward] | ||||
Balance, beginning of year | 744 | 678 | ||
Accretion expense | 74 | 66 | ||
Balance, end of year | $ 818 | 744 | ||
Estimated undiscounted cash flows required to settle obligation | $ 1,084 | $ 1,084 | ||
Credit adjusted risk-free rate assumed in measuring the asset retirement obligation (percent) | 9.42% | |||
Deferred gain on sale-leaseback [Roll Forward] | ||||
Addition | $ 2,262 | 5,155 | ||
Amortization of deferred gain on sale-leaseback | (1,478) | (700) | ||
Balance, end of year | 8,438 | 7,654 | ||
Other Liabilities, Sublease Income [Roll Forward] | ||||
Balance, beginning of year | 0 | 0 | ||
Addition | 1,732 | 0 | ||
Amortization of loss | (197) | 0 | ||
Balance, end of year | $ 1,535 | $ 0 |
Shares - Common shares (Details
Shares - Common shares (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, outstanding (in shares) | 25,452,224 | 28,305,660 |
Issued upon exercise of stock options (in shares) | 297,940 | 176,800 |
Issued upon conversion of convertible debentures (in shares) | 2,211 | |
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (in shares) | (660,620) | (758,271) |
Settlement of certain equity classified stock-based compensation (in shares) | 1,193,935 | 353,592 |
Retired through share purchase programs (in shares) | (1,281,485) | (2,625,557) |
Ending balance, outstanding (in shares) | 25,004,205 | 25,452,224 |
Shares to satisfy recipient tax withholding requirements (in shares) | 553,036,000 | 161,285,000 |
Satisfaction of recipient tax withholding | $ 4,308 | $ 987 |
Common shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, outstanding (in shares) | 28,070,150 | 30,518,907 |
Issued upon exercise of stock options (in shares) | 297,940 | 176,800 |
Issued upon conversion of convertible debentures (in shares) | 2,211 | |
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (in shares) | 0 | 0 |
Settlement of certain equity classified stock-based compensation (in shares) | 0 | 0 |
Retired through share purchase programs (in shares) | (1,281,485) | (2,625,557) |
Ending balance, outstanding (in shares) | 27,088,816 | 28,070,150 |
Treasury shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, outstanding (in shares) | (2,617,926) | (2,213,247) |
Issued upon exercise of stock options (in shares) | 0 | 0 |
Issued upon conversion of convertible debentures (in shares) | 0 | |
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (in shares) | (660,620) | (758,271) |
Settlement of certain equity classified stock-based compensation (in shares) | 1,193,935 | 353,592 |
Retired through share purchase programs (in shares) | 0 | 0 |
Ending balance, outstanding (in shares) | (2,084,611) | (2,617,926) |
Shares - Net income per share (
Shares - Net income per share (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CAD ($)$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2017CAD ($)$ / sharesshares | Dec. 31, 2017$ / shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Parent | $ | $ 15,286 | $ 5,264 | ||
Interest from Convertible Debentures (after tax) | $ | 1,792 | 0 | ||
Diluted net income available to common shareholders | $ | $ 17,078 | $ 5,264 | ||
Weighted average number of common shares (in shares) | 24,991,517 | 26,697,066 | ||
Weighted average effect of dilutive securities | ||||
Dilutive effect of treasury shares (in shares) | 2,394,824 | 2,622,957 | ||
Dilutive effect of stock options (in shares) | 357,026 | 285,703 | ||
Dilutive effect of Convertible Debentures | 3,684,424 | 0 | ||
Weighted average number of diluted common shares (in shares) | 31,427,791 | 29,605,726 | ||
Basic net income per share (in CAD per share) | (per share) | $ 0.61 | $ 0.61 | $ 0.20 | $ 0.20 |
Diluted net income per share (in CAD per share) | (per share) | $ 0.54 | $ 0.54 | $ 0.18 | $ 0.18 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive awards not considered in computing diluted earnings per share (in shares) | 14,247 | 469,819 | ||
Convertible debentures | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive awards not considered in computing diluted earnings per share (in shares) | 2,949,309 |
Shares - Share purchase program
Shares - Share purchase program (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 14, 2017 | Aug. 09, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares purchased and subsequently cancelled during period (in shares) | (1,281,485) | (2,625,557) | ||
2017 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Maximum number of shares to be purchased (in shares) | 2,424,333 | |||
Shares purchased and subsequently cancelled during period (in shares) | (1,281,485) | (1,142,762) | ||
2016 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Maximum number of shares to be purchased (in shares) | 2,733,482 | |||
Shares purchased and subsequently cancelled during period (in shares) | (1,657,514) | |||
Common shares | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares purchased and subsequently cancelled during period (in shares) | (1,281,485) | (2,625,557) | ||
Common shares | 2017 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Increase (decrease) as a result of the retirement of shares | $ (10,975) | $ (9,810) | ||
Common shares | 2016 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares purchased and subsequently cancelled during period (in shares) | (1,482,795) | |||
Increase (decrease) as a result of the retirement of shares | $ (12,763) | |||
Additional paid-in capital | 2017 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Increase (decrease) as a result of the retirement of shares | $ 1,435 | 4,119 | ||
Additional paid-in capital | 2016 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Increase (decrease) as a result of the retirement of shares | $ 3,484 |
Shares - Dividends (Details)
Shares - Dividends (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Annual aggregate dividend (in CAD per share) | $ 0.08 | |
Quarterly dividends paid (CAD per share) | $ 0.02000 | $ 0.02 |
Dividends payable | $ 500 | $ 510 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 410,061 | $ 292,557 |
Time-and-materials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 151,796 | 97,588 |
Unit-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 253,277 | 191,041 |
Cost-plus | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,988 | 3,928 |
Construction services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 42,481 | 21,710 |
Operations support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 367,580 | 270,847 |
Cost-to-cost percent complete | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 186,741 | 125,716 |
As-invoiced | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 223,320 | $ 166,841 |
Revenue - Schedule of major cus
Revenue - Schedule of major customers (Details) - Customer concentration risk - Revenues | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 43.00% | 44.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 23.00% | 26.00% |
Customer C | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 21.00% | 17.00% |
Customer D | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 9.00% | 11.00% |
Revenue - Contract balances (De
Revenue - Contract balances (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Contract receivables, included in accounts receivable, net | $ 78,278 | $ 45,716 |
Contract assets | 10,673 | 21,572 |
Contract liabilities | 4,032 | 824 |
Significant Changes in Contract Assets | ||
Transferred to receivables from contract assets recognized at the beginning of the period | (14,701) | (9,129) |
Increases as a result of changes to the estimate of the stage of completion, excluding amounts transferred in the period | 2,043 | 6,183 |
Increases as a result of work completed, but not yet an unconditional right to consideration | 409 | 8,554 |
Increases as a result of Nuna acquisition | 1,350 | 0 |
Significant Changes in Contract Liabilities | ||
Revenue recognized that was included in the contract liability balance at the beginning of the period | (84) | (347) |
Increases due to cash received, excluding amounts recognized as revenue during the period | 1,379 | 100 |
Increases as a result of Nuna acquisition | 1,913 | 0 |
Performance Obligation | ||
Revenue recognized | $ 2,516 | $ 1,177 |
Revenue - Unpriced contract mod
Revenue - Unpriced contract modifications (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 410,061 | $ 292,557 |
Uncollected consideration | 7,526 | 8,020 |
Variable consideration - unpriced contract modifications | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 250 | 1,168 |
Accounts receivable | ||
Disaggregation of Revenue [Line Items] | ||
Uncollected consideration | 0 | 358 |
Contract assets | ||
Disaggregation of Revenue [Line Items] | ||
Uncollected consideration | $ 7,526 | $ 7,662 |
Revenue - Estimated revenue exp
Revenue - Estimated revenue expected to be recognized in the future related to performance obligations (Details) $ in Thousands | Dec. 31, 2018CAD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 206,900 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period | 1 year |
Revenue - Contract costs (Detai
Revenue - Contract costs (Details) - CAD ($) | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Capitalized Contract Cost [Line Items] | |||
Contract costs | $ 2,308,000 | $ 422,000 | |
Reimbursable bid costs | |||
Capitalized Contract Cost [Line Items] | |||
Contract costs | 670,000 | 422,000 | |
Contract costs capitalized during the period | 248,000 | 422,000 | |
Fulfillment costs | |||
Capitalized Contract Cost [Line Items] | |||
Contract costs | 1,638,000 | 0 | |
Contract costs capitalized during the period | $ 502,000 | $ 2,611,000 | $ 0 |
Commitments (Details)
Commitments (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 6,003 | |
2,020 | 6,091 | |
2,021 | 6,091 | |
2,022 | 5,098 | |
2023 and thereafter | 12,382 | |
Total future minimum lease payments for operating leases | 35,665 | |
Operating leases, rent expense | $ 2,277 | $ 2,902 |
Interest expense (Details)
Interest expense (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Interest Expense [Line Items] | ||
Amortization of deferred financing costs | $ 539,000 | $ 797,000 |
Interest on long term debt | 8,759,000 | 7,087,000 |
Other interest income | (175,000) | (144,000) |
Total interest expense, net | 8,584,000 | 6,943,000 |
Interest capitalized | 634,000 | 0 |
Capital lease obligations | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 2,984,000 | 3,023,000 |
Credit Facility | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 2,729,000 | 1,507,000 |
Convertible debentures | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 2,200,000 | 1,760,000 |
Promissory notes | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 202,000 | 0 |
Mortgage | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 105,000 | 0 |
Amortization of deferred financing costs | $ 256,000 | $ 344,000 |
Stock-based compensation - Stoc
Stock-based compensation - Stock-based compensation expenses (Details) - General and administrative expenses - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | $ 11,532 | $ 3,995 |
Share option plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 97 | 326 |
Equity classified restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 2,110 | 1,293 |
Performance restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 1,910 | 1,306 |
Liability classified deferred stock unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | $ 7,415 | $ 1,070 |
Stock-based compensation - Shar
Stock-based compensation - Share options plan (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Number of options | |||
Exercised (in shares)) | (297,940) | (176,800) | |
Weighted average exercise price $ per share | |||
Proceeds from options exercised | $ 1,023 | $ 575 | |
Share option plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 5.40 | ||
Number shares acquired per each option exercised | 1 | ||
Stock options annual vesting percentage | 20.00% | ||
Number of shares authorized for issuance (in shares) | 3,399,399 | ||
Number of options | |||
Beginning balance (in shares) | 913,540 | 1,176,080 | |
Exercised (in shares)) | [1] | (297,940) | (176,800) |
Forfeited or expired (in shares) | (50,000) | (85,740) | |
Ending balance (in shares) | 565,600 | 913,540 | |
Weighted average exercise price $ per share | |||
Beginning balance (CAD per share) | $ 5.36 | $ 5.56 | |
Exercised (CAD per share) | [1] | 3.43 | 3.26 |
Forfeited or expired (CAD per share) | 16.46 | 12.36 | |
Ending balance (CAD per share) | $ 5.40 | $ 5.36 | |
Proceeds from options exercised | $ 1,023 | $ 575 | |
Total intrinsic value of options exercised | $ 1,351 | $ 640 | |
Share option plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Years from grant date stock options expire | 10 years | ||
[1] | All stock options exercised resulted in new common shares being issued (note 18(a)) |
Stock-based compensation - Opti
Stock-based compensation - Options by exercise price range (Details) - Share option plan | 12 Months Ended | ||
Dec. 31, 2018CAD ($)$ / sharesshares | Dec. 31, 2017CAD ($)shares | Dec. 31, 2017$ / shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options outstanding, Number (in shares) | shares | 565,600 | ||
Options outstanding, Weighted average remaining life | 3 years 3 months 18 days | 4 years | |
Options outstanding, Weighted average exercise price (in CAD per share) | $ 5.40 | ||
Total options exercisable (in shares) | shares | 565,600 | 887,140 | |
Options exercisable, Weighted average remaining life | 3 years 3 months 18 days | ||
Options exercisable, Weighted average exercise price (in CAD per share) | (per share) | $ 5.40 | $ 5.35 | |
Fair value of options vested | $ | $ 98,000 | $ 518,000 | |
Non-vested awards not yet recognized | $ | $ 0 | $ 46,000 | |
$ 2.75 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 2.75 | ||
Options outstanding, Number (in shares) | shares | 90,100 | ||
Options outstanding, Weighted average remaining life | 3 years 8 months 12 days | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 2.75 | ||
Options exercisable, Number (in shares) | shares | 90,100 | ||
Options exercisable, Weighted average remaining life | 3 years 8 months 12 days | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 2.75 | ||
$ 2.79 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 2.79 | ||
Options outstanding, Number (in shares) | shares | 162,000 | ||
Options outstanding, Weighted average remaining life | 3 years 6 months | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 2.79 | ||
Options exercisable, Number (in shares) | shares | 162,000 | ||
Options exercisable, Weighted average remaining life | 3 years 6 months | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 2.79 | ||
$ 5.91 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 5.91 | ||
Options outstanding, Number (in shares) | shares | 123,680 | ||
Options outstanding, Weighted average remaining life | 5 years | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 5.91 | ||
Options exercisable, Number (in shares) | shares | 123,680 | ||
Options exercisable, Weighted average remaining life | 5 years | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 5.91 | ||
$ 6.56 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 6.56 | ||
Options outstanding, Number (in shares) | shares | 54,880 | ||
Options outstanding, Weighted average remaining life | 2 years 10 months 24 days | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 6.56 | ||
Options exercisable, Number (in shares) | shares | 54,880 | ||
Options exercisable, Weighted average remaining life | 2 years 10 months 24 days | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 6.56 | ||
$ 8.28 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 8.28 | ||
Options outstanding, Number (in shares) | shares | 10,000 | ||
Options outstanding, Weighted average remaining life | 6 months | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 8.28 | ||
Options exercisable, Number (in shares) | shares | 10,000 | ||
Options exercisable, Weighted average remaining life | 6 months | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 8.28 | ||
$ 8.58 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 8.58 | ||
Options outstanding, Number (in shares) | shares | 30,000 | ||
Options outstanding, Weighted average remaining life | 1 year 8 months 12 days | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 8.58 | ||
Options exercisable, Number (in shares) | shares | 30,000 | ||
Options exercisable, Weighted average remaining life | 1 year 8 months 12 days | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 8.58 | ||
$ 9.33 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 9.33 | ||
Options outstanding, Number (in shares) | shares | 48,680 | ||
Options outstanding, Weighted average remaining life | 1 year 1 month 6 days | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 9.33 | ||
Options exercisable, Number (in shares) | shares | 48,680 | ||
Options exercisable, Weighted average remaining life | 1 year 1 month 6 days | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 9.33 | ||
$ 10.13 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price (CAD per share) | $ 10.13 | ||
Options outstanding, Number (in shares) | shares | 46,260 | ||
Options outstanding, Weighted average remaining life | 2 years | ||
Options outstanding, Weighted average exercise price (in CAD per share) | $ 10.13 | ||
Options exercisable, Number (in shares) | shares | 46,260 | ||
Options exercisable, Weighted average remaining life | 2 years | ||
Options exercisable, Weighted average exercise price (in CAD per share) | $ 10.13 |
Stock-based compensation - Rest
Stock-based compensation - Restricted share unit plan (Details) - Restricted share units (RSUs) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Liability classified restricted share unit plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition in years following grant | 2 years | |
Award vesting period | 3 years | |
Equity classified restricted share unit plan | ||
Number of units | ||
Beginning balance (in shares) | 1,189,933 | 1,123,975 |
Granted (in shares) | 266,196 | 355,292 |
Vested (in shares) | (487,376) | (259,860) |
Forfeited (in shares) | (20,660) | (29,474) |
Ending balance (in shares) | 948,093 | 1,189,933 |
Weighted average exercise price $ per share | ||
Outstanding, beginning of period (CAD per unit) | $ 4.22 | $ 4.20 |
Granted, Weighted average exercise price (CAD per unit) | 8.02 | 6.02 |
Vested, Weighted average exercise price (CAD per unit) | 3.01 | 6.24 |
Forfeited, Weighted average exercise price (CAD per unit) | 5.45 | 4 |
Outstanding, end of period (CAD per unit) | $ 8.98 | $ 4.22 |
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ 2,754 | $ 2,199 |
Period for award recognition | 1 year 3 months 18 days | 1 year 3 months 18 days |
Stock-based compensation - Perf
Stock-based compensation - Performance and deferred stock unit plan (Details) | Jul. 01, 2014 | Dec. 31, 2018CAD ($)$ / sharesshares | Dec. 31, 2017CAD ($)$ / sharesshares |
Performance restricted share units (PSUs) | |||
Number of units | |||
Beginning balance (in shares) | 896,633 | 739,300 | |
Granted (in shares) | 197,763 | 248,824 | |
Vested/redeemed (in shares) | (353,279) | (69,949) | |
Forfeited (in shares) | (21,542) | ||
Ending balance (in shares) | 741,117 | 896,633 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Outstanding, beginning of period (CAD per unit) | $ / shares | $ 4.81 | $ 4.84 | |
Granted, Weighted average exercise price (CAD per unit) | $ / shares | 8.01 | 5.98 | |
Vested, Weighted average exercise price (CAD per unit) | $ / shares | 4.27 | 8.57 | |
Forfeited, Weighted average exercise price (CAD per unit) | $ / shares | 4.05 | ||
Outstanding, end of period (CAD per unit) | $ / shares | $ 5.92 | $ 4.81 | |
Settlement ratio, per PSU (in shares) | 2 | 1.34 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.98% | 1.17% | |
Expected volatility | 45.04% | 46.47% | |
Performance restricted share unit plan | Performance restricted share units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
July 2014 grant | Performance restricted share units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ | $ 2,713,000 | $ 2,250,000 | |
Period for award recognition | 1 year 3 months 15 days | 1 year 4 months 10 days | |
Deferred share unit plan | Deferred stock units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Annual fixed remuneration | 50.00% | ||
Percentage of annual bonus eligible for deferred stock units | 50.00% | ||
Liability classified deferred stock unit plan | Deferred stock units (DSUs) | |||
Number of units | |||
Beginning balance (in shares) | 991,583 | 941,937 | |
Granted (in shares) | 134,656 | 114,895 | |
Vested/redeemed (in shares) | 0 | (65,249) | |
Ending balance (in shares) | 1,126,239 | 991,583 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Fair market value (CAD per share) | $ / shares | $ 11.91 | $ 5.72 | |
Award units settled during the period | $ | $ 0 | $ 343,000 | |
Liability classified deferred stock unit plan | Deferred stock units (DSUs) | Accrued liabilities | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Current portion of award obligation | $ | 0 | 0 | |
Liability classified deferred stock unit plan | Deferred stock units (DSUs) | Other liabilities | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Non-current portion of award obligation | $ | $ 13,413,000 | $ 5,672,000 |
Other information Other informa
Other information Other information - Supplemental cash flow information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid during the year for: | ||
Interest | $ 9,258 | $ 5,615 |
Cash received during the year for: | ||
Interest | $ 41 | $ 162 |
Other information - Non-cash (D
Other information - Non-cash (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non-cash transactions: | ||
Addition of property, plant and equipment by means of capital leases | $ 49,440 | $ 34,730 |
Property, plant and equipment reclassified to asset held for sale | (53) | (6,869) |
Increase in capital lease obligations related to purchase of heavy equipment fleet and related assets | 1,759 | 0 |
Increase in capital lease obligations related to investment in affiliates and joint ventures | 542 | 0 |
Increase in capital lease obligations related to the initial investment in the partnership | 0 | 800 |
Increase in equipment promissory notes related to purchase of heavy equipment fleet and related assets | 10,851 | 0 |
Acquisition of property, plant and equipment related to the initial investment in the partnership | 0 | 2,581 |
Increase in long term debt related to investment in affiliates and joint ventures | 0 | 637 |
Increase in long term debt related to investment in affiliates and joint ventures | 3,127 | 0 |
Non-cash working capital exclusions: | ||
Decrease in contract assets related to adoption of accounting standards | (547) | 0 |
Increase in inventory related to the initial partnership investment | 0 | 29 |
Increase in inventory related to the purchase of heavy equipment fleet and related assets | 4,268 | 0 |
Increase in prepaid expenses related to the initial investment in the partnership | 0 | 4 |
Increase in other assets related to adoption of accounting standards | 502 | 0 |
Increase in accrued liabilities related to the current portion of the deferred gain on sale-leaseback | 0 | (859) |
Decrease in accrued liabilities related to conversion of bonus compensation to deferred stock units | 326 | 0 |
Decrease in accrued liabilities related to dividend payable | 10 | 59 |
Increase in accounts receivable | 13,234 | 0 |
Increase in contract assets | 3,089 | 0 |
Increase in inventory | 3,926 | 0 |
Increase in prepaid expenses | 399 | 0 |
Increase in accounts payable | (10,604) | 0 |
Increase in accrued liabilities | (1,136) | 0 |
Increase in contract liabilities | (360) | 0 |
Operating activities: | ||
Accounts receivable | (22,359) | (7,148) |
Contract assets | 13,441 | (5,607) |
Inventories | (443) | (1,288) |
Contract costs | (1,384) | 0 |
Prepaid expenses and deposits | (1,513) | (283) |
Accounts payable | 17,665 | 5,640 |
Accrued liabilities | 5,923 | 1,904 |
Contract liabilities | 2,848 | (247) |
Net changes in non-cash working capital | $ 14,178 | $ (7,029) |
Employee benefit plans (Details
Employee benefit plans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($)$ / h | Dec. 31, 2017CAD ($) | |
Retirement Benefits [Abstract] | ||
Contributions made by the Company during the year | $ | $ 991 | $ 877 |
Company match of voluntary contributions made by employees, percentage of base salary | 5.00% | |
Contribution per hour | $ / h | 1 |
Related party transactions (Det
Related party transactions (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
NL Partnership | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 41 | |
Management fee revenue | (7) | |
Interest revenue | 12 | |
Distributions | 0 | |
Rent expense | 0 | |
Accounts receivable | 0 | |
Accounts payable and accrued liabilities | 2,355 | |
Affiliates | ||
Related Party Transaction [Line Items] | ||
Revenue | 636 | |
Management fee revenue | 352 | |
Interest revenue | 56 | |
Distributions | (102) | |
Rent expense | 38 | |
Accounts receivable | 13 | |
Accounts payable and accrued liabilities | 719 | |
Director | ||
Related Party Transaction [Line Items] | ||
Sublease proceeds | $ 315 | $ 332 |
Uncategorized Items - noa-20181
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (45,000) |
Accounting Standards Update 2014-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (45,000) |