Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 23, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | BROADWIND ENERGY, INC. | |
Entity Central Index Key | 1,120,370 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,616,668 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 142 | $ 78 |
Accounts receivable, net of allowance for doubtful accounts of $177 and $225 as of September 30, 2018 and December 31, 2017, respectively | 16,727 | 13,644 |
Inventories, net | 23,541 | 19,279 |
Prepaid expenses and other current assets | 1,817 | 1,798 |
Current assets held for sale | 19 | 580 |
Total current assets | 42,246 | 35,379 |
LONG-TERM ASSETS: | ||
Property and equipment, net | 50,711 | 55,693 |
Goodwill | 4,993 | |
Other intangible assets, net | 14,665 | 16,078 |
Other assets | 412 | 207 |
TOTAL ASSETS | 108,034 | 112,350 |
CURRENT LIABILITIES: | ||
Line of credit, NMTC and other notes payable | 19,684 | 14,138 |
Current maturities of long-term debt | 114 | |
Current portions of capital lease obligations | 954 | 762 |
Accounts payable | 14,424 | 11,756 |
Accrued liabilities | 4,820 | 4,393 |
Customer deposits | 7,773 | 9,791 |
Current liabilities held for sale | 28 | 30 |
Total current liabilities | 47,683 | 40,984 |
LONG-TERM LIABILITIES: | ||
Long-term debt, net of current maturities | 1,760 | 797 |
Long-term capital lease obligations, net of current portions | 818 | 941 |
Other | 2,268 | 3,557 |
Total long-term liabilities | 4,846 | 5,295 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,890,605 and 15,480,299 shares issued as of September 30, 2018, and December 31, 2017, respectively | 16 | 15 |
Treasury stock, at cost, 273,937 shares as of September 30, 2018 and December 31, 2017 | (1,842) | (1,842) |
Additional paid-in capital | 381,175 | 380,005 |
Accumulated deficit | (323,844) | (312,107) |
Total stockholders’ equity | 55,505 | 66,071 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 108,034 | $ 112,350 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 177 | $ 225 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 15,890,605 | 15,480,299 |
Treasury stock, common shares | 273,937 | 273,937 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenues | $ 31,445 | $ 29,595 | $ 98,193 | $ 129,017 |
Cost of sales | 29,802 | 28,581 | 94,228 | 117,757 |
Restructuring | 157 | 388 | ||
Gross profit | 1,486 | 1,014 | 3,577 | 11,260 |
OPERATING EXPENSES: | ||||
Selling, general and administrative | 3,627 | 2,374 | 10,020 | 10,711 |
Impairment charges | 4,993 | |||
Intangible amortization | 471 | 471 | 1,413 | 1,293 |
Restructuring | 36 | |||
Total operating expenses | 4,098 | 2,845 | 16,462 | 12,004 |
Operating loss | (2,612) | (1,831) | (12,885) | (744) |
OTHER (EXPENSE) INCOME, net: | ||||
Interest expense, net | (372) | (228) | (1,022) | (584) |
Other, net | 2,247 | (12) | 2,243 | 17 |
Total other income (expense), net | 1,875 | (240) | 1,221 | (567) |
Net loss before provision (benefit) for income taxes | (737) | (2,071) | (11,664) | (1,311) |
Provision (benefit) for income taxes | 13 | (22) | (20) | (5,056) |
(LOSS) INCOME FROM CONTINUING OPERATIONS | (750) | (2,049) | (11,644) | 3,745 |
LOSS FROM DISCONTINUED OPERATIONS | (33) | (158) | (93) | (405) |
NET (LOSS) INCOME | $ (783) | $ (2,207) | $ (11,737) | $ 3,340 |
NET (LOSS) INCOME PER COMMON SHARE—BASIC: | ||||
(Loss) income from continuing operations (in dollars per share) | $ (0.05) | $ (0.14) | $ (0.76) | $ 0.25 |
Loss from discontinued operations (in dollars per share) | 0 | (0.01) | 0 | (0.03) |
Net (loss) income (in dollars per share) | $ (0.05) | $ (0.15) | $ (0.76) | $ 0.22 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC (in shares) | 15,541,289 | 15,094,991 | 15,390,090 | 15,013,312 |
NET (LOSS) INCOME PER COMMON SHARE-DILUTED: | ||||
(Loss) income from continuing operations (in dollars per share) | $ (0.05) | $ (0.14) | $ (0.76) | $ 0.24 |
Loss from discontinued operations (in dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net (loss) income (in dollars per share) | $ (0.05) | $ (0.15) | $ (0.76) | $ 0.22 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED (in shares) | 15,541,289 | 15,094,991 | 15,390,090 | 15,344,508 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2016 | $ 15 | $ (1,842) | $ 378,876 | $ (308,466) | $ 68,583 |
Balance (in shares) at Dec. 31, 2016 | 15,175,767 | (273,937) | |||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for restricted stock (in shares) | 190,482 | ||||
Stock issued under defined contribution 401(k) retirement savings plan | 316 | 316 | |||
Stock issued under defined contribution 401(k) retirement savings plan (in shares) | 114,050 | ||||
Share-based compensation | 813 | 813 | |||
Net loss | (3,641) | (3,641) | |||
Balance at Dec. 31, 2017 | $ 15 | $ (1,842) | 380,005 | (312,107) | $ 66,071 |
Balance (in shares) at Dec. 31, 2017 | 15,480,299 | (273,937) | 15,480,299 | ||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for restricted stock | $ 1 | $ 1 | |||
Stock issued for restricted stock (in shares) | 153,554 | ||||
Stock issued under defined contribution 401(k) retirement savings plan | 537 | 537 | |||
Stock issued under defined contribution 401(k) retirement savings plan (in shares) | 241,640 | ||||
Share-based compensation | 685 | 685 | |||
Sale of common stock, net | (52) | (52) | |||
Sale of common stock, net (shares) | 15,112 | ||||
Net loss | (11,737) | (11,737) | |||
Balance at Sep. 30, 2018 | $ 16 | $ (1,842) | $ 381,175 | $ (323,844) | $ 55,505 |
Balance (in shares) at Sep. 30, 2018 | 15,890,605 | (273,937) | 15,890,605 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net (loss) income | $ (11,737) | $ 3,340 | |||
Loss from discontinued operations | $ (33) | $ (158) | (93) | (405) | |
(Loss) income from continuing operations | (750) | (2,049) | (11,644) | 3,745 | |
Adjustments to reconcile net cash used in operating activities: | |||||
Depreciation and amortization expense | 2,284 | 2,267 | 6,990 | 6,571 | |
Deferred income taxes | (45) | (5,056) | |||
Impairment charges | 4,993 | ||||
Remeasurement of contingent consideration | (1,140) | (1,394) | |||
Stock-based compensation | 685 | 651 | |||
Extinguishment of New Markets Tax Credits obligation | (2,249) | ||||
Allowance for doubtful accounts | (48) | 13 | |||
Common stock issued under defined contribution 401(k) plan | 537 | 175 | |||
Gain on disposal of assets | (23) | (12) | |||
Changes in operating assets and liabilities, net of acquisition: | |||||
Accounts receivable | (3,035) | 5,281 | |||
Inventories | (3,814) | 10,928 | |||
Prepaid expenses and other current assets | (19) | 377 | |||
Accounts payable | 3,576 | (9,284) | |||
Accrued liabilities | 1,567 | (2,643) | |||
Customer deposits | (2,018) | (15,934) | |||
Other non-current assets and liabilities | (1,546) | (45) | |||
Net cash used in operating activities of continuing operations | (7,233) | (6,627) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Cash paid in acquisition | (16,449) | ||||
Sales of available for sale securities | 2,221 | ||||
Maturities of available for sale securities | 950 | ||||
Purchases of property and equipment | (2,018) | (5,972) | |||
Proceeds from disposals of property and equipment | 583 | 5 | |||
Net cash used in investing activities of continuing operations | (1,435) | (19,245) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of stock | 33 | ||||
Proceeds from line of credit | 103,406 | 130,470 | |||
Payments on line of credit | (95,493) | (122,700) | |||
Proceeds from long-term debt | 2,060 | ||||
Payments on long-term debt | (536) | ||||
Principal payments on capital leases | (581) | (557) | |||
Proceeds from sale of common stock, net | (52) | ||||
Net cash provided by financing activities of continuing operations | 8,804 | 7,213 | |||
DISCONTINUED OPERATIONS: | |||||
Operating cash flows | (72) | (40) | |||
Net cash used in discontinued operations | (72) | (40) | |||
Add: Cash balance of discontinued operations, beginning of period | $ 2 | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 64 | (18,697) | |||
CASH AND CASH EQUIVALENTS beginning of the period | 78 | 18,738 | |||
CASH AND CASH EQUIVALENTS end of the period | $ 142 | 41 | 142 | 41 | $ 18,738 |
Supplemental cash flow information: | |||||
Interest paid | 822 | 413 | |||
Income taxes paid | 94 | 52 | |||
Non-cash activities: | |||||
Issuance of restricted stock grants | $ 685 | 651 | |||
Equipment addition via capital lease | 1,582 | ||||
Contingent consideration related to business acquisition | $ 2,534 | 2,534 | |||
Red Wolf acquisition: | |||||
Assets acquired | 26,491 | ||||
Liabilities assumed | $ 7,508 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION The unaudited condensed consolidated financial statements presented herein include the accounts of Broadwind Energy, Inc. (the “Company”) and its wholly-owned subsidiaries Broadwind Towers, Inc. (“Broadwind Towers”), Brad Foote Gear Works, Inc. (“Brad Foote”), and Red Wolf Company, LLC (“Red Wolf”). All intercompany transactions and balances have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2018. The December 31, 2017 condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. This financial information should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In February 2017, the Company acquired Red Wolf and formed the Process Systems segment. Consequently, the Company revised its segment presentation to include three reportable operating segments: Towers and Heavy Fabrications, Gearing and Process Systems. All current results have been presented to reflect this change. See Note 14, “Segment Reporting” of these condensed consolidated financial statements for further discussion of reportable segments. There have been no material changes in the Company’s significant accounting policies during the nine months ended September 30, 2018 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, other than the adoption of Accounting Standards Updates (“ASU”) 2014-09 and 2015-14 described in Note 2 “Revenues” of these condensed consolidated financial statements, and ASU 2017-04 described in Note 13 “Recent Accounting Pronouncements” of these condensed consolidated financial statements. Company Description Through its subsidiaries, the Company provides technologically advanced high-value products to energy, mining and infrastructure sector customers, primarily in the United States of America (the “U.S.”). The Company’s most significant presence is within the U.S. wind energy industry, which accounted for 55% of the Company’s revenue during the first nine months of 2018. The Company has diversified its operations to provide precision gearing, specialty fabrications, kitting and assemblies of industrial systems to a broad range of industrial customers for oil and gas (“O&G”), mining, steel, and other industrial applications. Please refer to Note 18, “Restructuring” of these condensed consolidated financial statements for the discussion of the restructuring plan which the Company initiated in the first quarter of 2018. The Company has incurred a total of approximately $424 of net costs in the first nine months of 2018 to implement this restructuring plan. Liquidity The Company meets its short term liquidity needs through cash generated from operations, its available cash balances, the Credit Facility (as defined below), additional equipment financing, and access to the public or private debt equity markets, including the option to raise capital under the Company’s Form S-3 (as discussed below). See Note 8, “Debt and Credit Agreements” of these condensed consolidated financial statements for a complete description of the Credit Facility and the Company’s other debt. Total debt and capital lease obligations at September 30, 2018 totaled $23,216, which includes current outstanding debt and capital leases totaling $20,638. The current outstanding debt includes $18,765 outstanding under the Company’s revolving line of credit. On August 11, 2017, the Company filed a “shelf” registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (the “SEC”) on October 10, 2017. This shelf registration statement, which includes a base prospectus, allows the Company at any time to offer any combination of securities described in the prospectus in one or more offerings. Unless otherwise specified in the prospectus supplement accompanying the base prospectus, the Company would use the net proceeds from the sale of any securities offered pursuant to the shelf registration statement for general corporate purposes. On July 31, 2018, the Company entered into an At Market Issuance Sales Agreement (the "ATM Agreement") with Roth Capital Partners, LLC (the “Agent”). Pursuant to the terms of the ATM Agreement, the Company may sell from time to time through the Agent shares of the Company's common stock, par value $0.001 per share with an aggregate sales price of up to $10,000. The Company will pay a commission to the Agent of 3% of the gross proceeds of the sale of the shares sold under the ATM Agreement and reimburse the Agent for the expenses of their counsel. During the three months ended September 30, 2018, the Company issued 15,112 shares of the Company’s common stock under the ATM Agreement and the net proceeds (before upfront costs) to the Company from the sale of the Company’s common stock were approximately $33 after deducting commissions paid of approximately $1. As of September 30, 2018, the Company’s common stock having a value of approximately $9,967 remained available for issuance with respect to the ATM Agreement. The Company anticipates that current cash resources, amounts available under the Credit Facility, cash to be generated from operations, and any potential proceeds from the sale of further Company securities under the Form S-3 will be adequate to meet the Company’s liquidity needs for at least the next twelve months. If assumptions regarding the Company’s production, sales and subsequent collections from certain of the Company’s large customers, as well as customer deposits and revenues generated from new customer orders, are materially inconsistent with management’s expectations, the Company may in the future encounter cash flow and liquidity issues. If the Company’s operational performance deteriorates significantly, it may be unable to comply with existing financial covenants, and could lose access to the Credit Facility. This could limit the Company’s operational flexibility, require a delay in making planned investments and/or require the Company to seek additional equity or debt financing. Any additional equity financing, if available, may be dilutive to stockholders, and additional debt financing, if available, would likely require new financial covenants or impose other restrictions on the Company. While the Company believes that it will continue to have sufficient cash available to operate its businesses and to meet its financial obligations and debt covenants, there can be no assurances that its operations will generate sufficient cash, or that credit facilities will be available in an amount sufficient to enable the Company to meet these financial obligations. Management’s Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include revenue recognition, future tax rates, future cash flows, inventory reserves, warranty reserves, impairment of long-lived assets, allowance for doubtful accounts, workers’ compensation reserves, and health insurance reserves. Although these estimates are based upon management’s best knowledge of current events and actions that the Company may undertake in the future, actual results could differ from these estimates. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2018 | |
REVENUES | |
REVENUES | NOTE 2 — REVENUES On January 1, 2018, the Company adopted ASU 2014-09 and 2015-14, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606 while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under Topic 605. Based on the Company’s contract evaluation, the Company determined there was no need to record any changes to the opening retained earnings due to the impact of adopting Topic 606. The adoption of Topic 606 did not have a material impact on the Company’s condensed consolidated financial statements. Revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company’s revenues disaggregated by revenue source for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Towers and Heavy Fabrications $ 17,331 $ 15,971 $ 58,139 $ 99,194 Gearing 10,056 7,570 27,494 17,511 Process Systems 4,155 6,054 12,680 12,312 Eliminations (97) - (120) - Consolidated $ 31,445 $ 29,595 $ 98,193 $ 129,017 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Revenue within the Company’s Gearing and Process Systems segments is recognized at a point in time, typically when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The Company measures revenue based on the consideration specified in the purchase order and revenue is recognized when the performance obligations are satisfied. If applicable, the transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. For many transactions within the Company’s Towers and Heavy Fabrications segment, products are sold under terms included in bill and hold sales arrangements that result in different timing for revenue recognition. The Company recognizes revenue under these arrangements only when the buyer requests the arrangement, the ordered goods are segregated from inventory and not available to fill other orders, the goods are currently ready for physical transfer to the customer, and the Company does not have the ability to use the product or to direct it to another customer. Assuming these required revenue recognition criteria are met, revenue is recognized upon completion of product manufacture and customer acceptance. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customer deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in the Company’s statement of operations. The Company does not disclose the value of the unsatisfied performance obligations for contracts with an original expected length of one year or less. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 3 — EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017, as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic earnings per share calculation: Net (loss) income $ (783) $ (2,207) $ (11,737) $ 3,340 Weighted average number of common shares outstanding 15,541,289 15,094,991 15,390,090 15,013,312 Basic net (loss) income per share $ (0.05) $ (0.15) $ (0.76) $ 0.22 Diluted earnings per share calculation: Net (loss) income $ (783) $ (2,207) $ (11,737) $ 3,340 Weighted average number of common shares outstanding 15,541,289 15,094,991 15,390,090 15,013,312 Common stock equivalents: Stock options and non-vested stock awards (1) — — — 331,196 Weighted average number of common shares outstanding 15,541,289 15,094,991 15,390,090 15,344,508 Diluted net (loss) income per share $ (0.05) $ (0.15) $ (0.76) $ 0.22 (1) Stock options and restricted stock units granted and outstanding of 870,707 are excluded from the computation of diluted earnings for the three and nine months ended September 30, 2018 due to the anti dilutive effect as a result of the Company’s net loss for those respective periods. Stock options and restricted stock units granted and outstanding of 593,583 are excluded from the computation of diluted earnings for the three months ended September 30, 2017 due to the anti dilutive effect as a result of the Company’s net loss for that period. Stock options outstanding of 47,033 for the nine months ended September 30, 2017 are excluded from the computation of diluted earnings as the strike price was greater than the fair market value as of September 30, 2017. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2018 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 4 — DISCONTINUED OPERATIONS The Company’s former Services segment had substantial continued operating losses for several years, due to operating issues and an increasingly competitive environment due in part to increased in-sourcing of service functions by customers. In July 2015, the Company’s Board of Directors (the “Board”) directed management to evaluate potential strategic alternatives with respect to the Services segment. In September 2015, the Board authorized management to sell substantially all of the assets of the Services segment to one or more third-party purchasers, and thereafter to liquidate or otherwise dispose of any such assets remaining unsold. The divestiture was substantially completed in December 2015. Results of Discontinued Operations Results of operations for the Services segment, which are reflected as discontinued operations in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ — $ 23 $ 1 $ 150 Cost of sales (32) (195) (90) (350) Selling, general and administrative (1) 14 (4) (44) Impairment of held for sale assets and liabilities and gain on sale of assets — — — (161) Loss from discontinued operations $ (33) $ (158) $ (93) $ (405) Assets and Liabilities Held for Sale Services assets and liabilities classified as held for sale in the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 include the following: September 30, December 31, 2018 2017 Assets: Accounts receivable, net $ 10 $ 11 Inventories, net 9 9 Total Assets Held For Sale Related To Discontinued Operations $ 19 $ 20 Liabilities: Accrued liabilities $ 27 $ 27 Customer deposits and other current obligations 1 3 Total Liabilities Held For Sale Related To Discontinued Operations $ 28 $ 30 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2018 | |
INVENTORIES | |
INVENTORIES | NOTE 5 — INVENTORIES The components of inventories as of September 30, 2018 and December 31, 2017 are summarized as follows: September 30, December 31, 2018 2017 Raw materials $ 15,154 $ 11,945 Work-in-process 7,061 6,305 Finished goods 3,448 3,538 25,663 21,788 Less: Reserve for excess and obsolete inventory (2,122) (2,509) Net inventories $ 23,541 $ 19,279 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the purchase price over the fair value of assets acquired, including identifiable intangibles and liabilities. Goodwill is not amortized but is tested at least annually for impairment or more frequently whenever events or circumstances occur indicating that those assets might be impaired. The Company added $4,993 of goodwill as a result of the Red Wolf acquisition, which was included in the Process Systems segment. See Note 14, “Segment Reporting” of these condensed consolidated financial statements for further discussion of the Company’s segments. During the second quarter of 2018, the Company identified triggering events associated with the release of Red Wolf’s final earn-out reserve, Red Wolf’s recent operating results, a reduction in Red Wolf’s major customer’s performance and the delay of new initiatives being implemented. As a result, the Company evaluated the recoverability of the Red Wolf asset group. In accordance with GAAP, the Company compared the carrying value of the Red Wolf asset group to the forecast undiscounted cash flows associated with this asset group. Based on the analysis performed, the forecast undiscounted cash flows exceeded the carrying value and no impairment of this group was indicated or recorded. The Company next compared the carrying value of the Red Wolf reporting unit to the fair value of the Red Wolf reporting unit. The fair value was determined using significant unobservable inputs, or level 3 in the fair value hierarchy. The two main assumptions utilized in the forecast discounted cash flow analysis were the cash flows from operations and the weighted average cost of capital of 18.6%. Based on the analysis performed, the Company determined that the carrying amount of the reporting unit exceeded the fair value and recorded a $4,993 goodwill impairment charge in the second quarter. The Company utilized a third-party appraisal to validate the results of the analysis. Other intangible assets represent the fair value assigned to definite-lived assets such as trade names and customer relationships as part of the Company’s acquisition of Brad Foote completed in 2007 as well as the noncompetition agreements, trade names and customer relationships that were part of the Company’s acquisition of Red Wolf in 2017. See Note 17, “Business Combinations” of these condensed consolidated financial statements for further discussion of the Red Wolf acquisition. Other intangible assets are amortized on a straight-line basis over their estimated useful lives, with a remaining life range from 4 to 10 years. The Company tests other intangible assets for impairment when events or circumstances indicate that the carrying value of these assets may not be recoverable. During the third quarter of 2018, the Company continued to identify triggering events associated with the Gearing segment’s history of operating losses. As a result, the Company evaluated the recoverability of certain long-lived assets associated with the Gearing segment. The Company relied upon an appraisal completed in a prior quarter and determined that there were no significant changes to the inputs or assumptions used previously. The Company concluded that no impairment to this asset group was indicated as of September 30, 2018. During the third quarter of 2018, the Company also identified a triggering event associated with Red Wolf’s recent operating losses. The Company relied upon an undiscounted cash flow analysis performed in the prior quarter and determined that there were no significant changes to the inputs or assumptions used previously. The Company concluded that no impairment to this asset group was indicated as of September 30, 2018. As of September 30, 2018 and December 31, 2017, the cost basis, accumulated amortization and net book value of intangible assets were as follows: September 30, 2018 December 31, 2017 Remaining Remaining Weighted Weighted Net Average Net Average Cost Accumulated Impairment Book Amortization Cost Accumulated Book Amortization Basis Amortization Charge Value Period Basis Amortization Value Period Goodwill and other intangible assets: Goodwill $ 4,993 $ — $ (4,993) $ — $ 4,993 $ — $ 4,993 Noncompete agreements 170 (47) — 123 4.3 170 (26) 144 Customer relationships 15,979 (6,025) — 9,954 7.3 15,979 (4,992) 10,987 8.0 Trade names 9,099 (4,511) — 4,588 9.7 9,099 (4,152) 4,947 10.5 Other intangible assets $ 25,248 $ (10,583) $ — $ 14,665 6.8 $ 25,248 $ (9,170) $ 16,078 8.8 As of September 30, 2018, estimated future amortization expense is as follows: 2018 $ 471 2019 1,884 2020 1,884 2021 1,884 2022 1,884 2023 and thereafter 6,658 Total $ 14,665 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | NOTE 7 — ACCRUED LIABILITIES Accrued liabilities as of September 30, 2018 and December 31, 2017 consisted of the following: September 30, December 31, 2018 2017 Accrued payroll and benefits $ 2,310 $ 1,797 Accrued property taxes 464 144 Income taxes payable 8 77 Accrued professional fees 55 40 Accrued warranty liability 523 581 Accrued self-insurance reserve 395 812 Accrued other 1,065 942 Total accrued liabilities $ 4,820 $ 4,393 |
DEBT AND CREDIT AGREEMENTS
DEBT AND CREDIT AGREEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
DEBT AND CREDIT AGREEMENTS | |
DEBT AND CREDIT AGREEMENTS | NOTE 8 — DEBT AND CREDIT AGREEMENTS The Company’s outstanding debt balances as of September 30, 2018 and December 31, 2017 consisted of the following: September 30, December 31, 2018 2017 Line of credit $ 18,765 $ 10,733 NMTC note payable — 2,600 Other notes payable 2,109 1,146 Long-term debt 570 570 Less: Current portion (19,684) (14,252) Long-term debt, net of current maturities $ 1,760 $ 797 Credit Facility On October 26, 2016, the Company established a $20,000 three-year secured revolving line of credit (the “Credit Facility”) with The PrivateBank and Trust Company which was subsequently acquired by CIBC Bank USA (“CIBC”). The Credit Facility was subsequently increased to $25,000 in March of 2017 with a Second Amendment to Loan and Security Agreement and an Amended and Restated Revolving Note. Under the Credit Facility, CIBC advances funds when requested against a borrowing base consisting of up to 85% of the face value of eligible accounts receivable of the Company, up to 50% of the book value of eligible inventory of the Company and up to 50% of the appraised value of eligible machinery, equipment and certain real property up to $10,000. Borrowings under the Credit Facility bear interest at a per annum rate equal to the applicable London Interbank Offered Rate (“LIBOR”) plus a margin ranging from 2.25% to 3.00%, or the applicable base rate plus a margin ranging from 0.00% to 1.00%, both of which are based on the Company’s trailing twelve-month adjusted earnings before interest, taxes, depreciation, amortization, share-based payments, restructuring costs, and intangible impairments (“EBITDA”). The Company also pays an unused facility fee to CIBC equal to 0.50% per annum on the unused portion of the Credit Facility, along with other standard fees. The Credit Facility contains customary representations and warranties. It also contains a requirement that the Company, on a consolidated basis, maintain a minimum Fixed Charge Coverage Ratio Covenant, along with other customary restrictive covenants. The obligations under the Credit Facility are secured by, subject to certain exclusions, (i) a first priority security interest in all accounts receivable, inventory, equipment, cash and investment property of the Company, and (ii) a mortgage on the Company’s Abilene, Texas tower facility. On January 29, 2018, the Company executed the Third Amendment to Loan and Security Agreement waiving the Company’s non-compliance with the Fixed Charge Coverage Ratio as of December 31, 2017 and, among other changes, added new minimum monthly EBITDA and capital expenditure covenants through June 30, 2018. The amendment also revised the Fixed Charge Coverage Ratio Covenant to be recalculated commencing with the quarter ending June 30, 2018. On May 3, 2018, the Company executed the Fourth Amendment to Loan and Security Agreement (the “Fourth Amendment”), waiving the Company’s non-compliance with the minimum EBITDA covenant through March 31, 2018. The Fourth Amendment, among other changes, amends the minimum EBITDA thresholds for the period ending June 30, 2018 and adjusts the definition of EBITDA to add back certain restructuring expenses. On October 26, 2018, the Company executed the Fifth Amendment to Loan and Security Agreement which included minimum EBITDA covenants through June 30, 2019, eliminating the Fixed Charge Coverage Ratio and capital expenditure covenants as of the period ending December 31, 2018. As of September 30, 2018, there was $18,765 of outstanding indebtedness under the Credit Facility, with the ability to borrow an additional $5,811 under the Credit Facility. Other Included in line of credit, NMTC (as defined below) and other notes payable line item of the Company’s consolidated financial statements is $2,600 associated with the New Markets Tax Credit Transaction (the “ NMTC Transaction”) described further in Note 16, “New Markets Tax Credit Transaction” of these condensed consolidated financial statements at December 31, 2017. During the third quarter of 2018, the loan was extinguished and the Company recorded a gain of $2,249 in other income, net of transaction expenses. Additionally, the Company has entered into a $570 loan agreement with the Development Corporation of Abilene which is included in Long-term debt, less current maturities. The loan is forgivable upon the Company meeting and maintaining specific employment thresholds. In addition, the Company has outstanding notes payable for capital expenditures in the amount of $2,109 and $1,146 as of September 30, 2018 and December 31, 2017, respectively, with $919 and $804 included in the Line of credit, NMTC and other notes payable line item as of September 30, 2018 and December 31, 2017, respectively. The notes payable have monthly payments that range from $3 to $36 and an interest rate of 5%. The equipment purchased is utilized as collateral for the notes payable. The outstanding notes payable have maturity dates that range from April 2020 to May 2021. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9 — FAIR VALUE MEASUREMENTS The Company measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. Additionally, the Company is required to provide disclosure and categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value while Level 3 generally requires significant management judgment. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. Financial instruments are assessed quarterly to determine the appropriate classification within the fair value hierarchy. Transfers between fair value classifications are made based upon the nature and type of the observable inputs. The fair value hierarchy is defined as follows: Level 1 — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. Level 3 — Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. The Company used market negotiations to value the Gearing segment’s assets. The following tables represent the fair values of the Company’s financial assets as of September 30, 2018 and December 31, 2017: September 30, 2018 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Services assets 19 19 Total assets at fair value $ — $ — $ 19 $ 19 December 31, 2017 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Gearing Cicero Ave. facility — — 560 560 Services assets — — 20 20 Total assets at fair value $ — $ — $ 580 $ 580 Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and customer deposits, approximate their respective fair values due to the relatively short-term nature of these instruments. Based upon interest rates currently available to the Company for debt with similar terms, the carrying value of the Company’s long-term debt is approximately equal to its fair value. Assets Measured at Fair Value on a Nonrecurring Basis The fair value measurement approach for long lived assets utilizes a number of significant unobservable inputs or Level 3 assumptions. To the extent assumptions used in the Company’s evaluations are not achieved, there may be a negative effect on the valuation of these assets. The carrying value of the land and building comprising one of Brad Foote’s facilities located in Cicero, Illinois (the “Cicero Avenue Facility”) of $560 reflected the expected proceeds associated with selling this facility. During 2017, the Company reclassified the Cicero Avenue Facility as Assets Held for Sale upon completion of general site remediation activities. See Note 15, “Commitments and Contingencies” of these condensed consolidated financial statements for additional detail of the Cicero Avenue Facility. During the third quarter of 2018, the Company sold the Cicero Avenue Facility and recognized a gain of $23 on the sale. The gain is included in operating income in these condensed consolidated financial statements. Following the Board’s approval of a plan to divest the Company’s Services segment, the Company has been able to evaluate the value of the segment’s assets on the open market; therefore, the Company has utilized this measurement to determine the fair value of the Services segment assets. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
INCOME TAXES | |
INCOME TAXES | NOTE 10 — INCOME TAXES Effective tax rates differ from federal statutory income tax rates primarily due to changes in the Company’s valuation allowance, permanent differences and provisions for state and local income taxes. As of September 30, 2018, the Company has a full valuation allowance recorded against deferred tax assets. During the nine months ended September 30, 2018, the Company recorded a benefit for income taxes of $20, compared to a benefit for income taxes of $5,056 during the nine months ended September 30, 2017. The income tax benefit during the nine months ended September 30, 2017 included an income tax benefit of $5,060 from the partial release of the valuation allowance, net of Red Wolf’s current state taxes, resulting from the consolidation of the Company’s deferred tax assets with Red Wolf’s deferred tax liabilities upon acquisition. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate; (2) eliminating the corporate alternative minimum tax; (3) creating a new limitation on deductible interest expense; and (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. In connection with the Tax Act, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information, prepared or analyzed in reasonable detail to complete its accounting for the change in tax law. The Company files income tax returns in U.S. federal and state jurisdictions. As of September 30, 2018, open tax years in federal and some state jurisdictions date back to 1996 due to the taxing authorities’ ability to adjust operating loss carryforwards. As of December 31, 2017, the Company had net operating loss (“NOL”) carryforwards of $227,871 expiring in various years through 2037. Since the Company has no unrecognized tax benefits, they will not have an impact on the condensed consolidated financial statements as a result of the expiration of the applicable statues of limitations within the next twelve months. In addition, Section 382 of the Internal Revenue Code of 1986, as amended (the “IRC”), generally imposes an annual limitation on the amount of NOL carryforwards and associated built-in losses that may be used to offset taxable income when a corporation has undergone certain changes in stock ownership. The Company’s ability to utilize NOL carryforwards and built-in losses may be limited, under IRC Section 382 or otherwise, by the Company’s issuance of common stock or by other changes in stock ownership. Upon completion of the Company’s analysis of IRC Section 382, the Company has determined that aggregate changes in stock ownership have triggered an annual limitation on NOL carryforwards and built-in losses available for utilization. To the extent the Company’s use of NOL carryforwards and associated built-in losses is significantly limited in the future due to additional changes in stock ownership, the Company’s income could be subject to U.S. corporate income tax earlier than it would be if the Company were able to use NOL carryforwards and built-in losses without such limitation, which could result in lower profits and the loss of benefits from these attributes. In February 2013, the Board adopted a Stockholder Rights Plan, which was amended in February 2016 (as amended, the “Rights Plan”), designed to preserve the Company’s substantial tax assets associated with NOL carryforwards under IRC Section 382. The Rights Plan was subsequently ratified by the Company’s stockholders at the Company’s 2013 Annual Meeting of Stockholders. The Rights Plan was amended and extended for an additional three years on February 5, 2016, and such extension was subsequently ratified by the Company’s stockholders at the Company’s 2016 Annual Meeting of Stockholders. The Rights Plan is intended to act as a deterrent to any person or group, together with its affiliates and associates, becoming the beneficial owner of 4.9% or more of the Company’s common stock and thereby triggering a further limitation of the Company’s available NOL carryforwards. In connection with the adoption of the Rights Plan, the Board declared a non‑taxable dividend of one preferred share purchase right (a “Right”) for each outstanding share of the Company’s common stock to the Company’s stockholders of record as of the close of business on February 22, 2013. Each Right entitles its holder to purchase from the Company one one‑thousandth of a share of the Company’s Series A Junior Participating Preferred Stock at an exercise price of $9.81 per Right, subject to adjustment. As a result of the Rights Plan, any person or group that acquires beneficial ownership of 4.9% or more of the Company’s common stock without the approval of the Board would be subject to significant dilution in the ownership interest of that person or group. Stockholders who owned 4.9% or more of the outstanding shares of the Company’s common stock as of February 12, 2013 will not trigger the preferred share purchase rights unless they acquire additional shares after that date. As of September 30, 2018, the Company had no unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense. The Company had no accrued interest and penalties as of September 30, 2018. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | NOTE 11 — SHARE-BASED COMPENSATION Overview of Share-Based Compensation Plans 2007 Equity Incentive Plan The Company has granted incentive stock options and other equity awards pursuant to the Amended and Restated Broadwind Energy, Inc. 2007 Equity Incentive Plan (the “2007 EIP”), which was approved by the Board in October 2007 and by the Company’s stockholders in June 2008. The 2007 EIP has been amended periodically since its original approval. The 2007 EIP reserved 691,051 shares of the Company’s common stock for grants to officers, directors, employees, consultants and advisors upon whose efforts the success of the Company and its affiliates depends to a large degree. As of September 30, 2018, the Company had reserved 25,233 shares for issuance upon the exercise of stock options outstanding and no shares for issuance upon the vesting of restricted stock unit (“RSU”) awards outstanding. As of September 30, 2018, 253,659 shares of common stock reserved for stock options and RSU awards under the 2007 EIP had been issued in the form of common stock. 2012 Equity Incentive Plan The Company has granted incentive stock options and other equity awards pursuant to the Broadwind Energy, Inc. 2012 Equity Incentive Plan (the “2012 EIP”), which was approved by the Board in March 2012 and by the Company’s stockholders in May 2012. The 2012 EIP reserved 1,200,000 shares of the Company’s common stock for grants to officers, directors, employees, consultants and advisors upon whose efforts the success of the Company and its affiliates will depend to a large degree. As of September 30, 2018, the Company had reserved 34,129 shares for issuance upon the exercise of stock options outstanding and no shares for issuance upon the vesting of RSU awards outstanding. As of September 30, 2018, 635,089 shares of common stock reserved for stock options and RSU awards under the 2012 EIP had been issued in the form of common stock. 2015 Equity Incentive Plan The Company has granted equity awards pursuant to the Broadwind Energy, Inc. 2015 Equity Incentive Plan (the “2015 EIP,” and together with the 2007 EIP and the 2012 EIP, the “Equity Incentive Plans”), which was approved by the Board in February 2015 and by the Company’s stockholders in April 2015. The purposes of the Equity Incentive Plans are to (a) align the interests of the Company’s stockholders and recipients of awards under the Equity Incentive Plans by increasing the proprietary interest of such recipients in the Company’s growth and success; (b) advance the interests of the Company by attracting and retaining officers, other employees, non-employee directors and independent contractors; and (c) motivate such persons to act in the long-term best interests of the Company and its stockholders. Under the Equity Incentive Plans, the Company may grant (i) non-qualified stock options; (ii) “incentive stock options” (within the meaning of IRC Section 422); (iii) stock appreciation rights; (iv) restricted stock and RSUs; and (v) performance awards. The 2015 EIP reserves 1,100,000 shares of the Company’s common stock for grants to officers, directors, employees, consultants and advisors upon whose efforts the success of the Company and its affiliates will depend to a large degree. As of September 30, 2018, the Company had reserved 811,345 shares for issuance upon the vesting of RSU awards outstanding. As of September 30, 2018, 340,511 shares of common stock reserved for RSU awards under the 2015 EIP had been issued in the form of common stock. Stock Options. The exercise price of stock options granted under the Equity Incentive Plans is equal to the closing price of the Company’s common stock on the date of grant. Stock options generally become exercisable on the anniversary of the grant date, with vesting terms that may range from one to five years from the date of grant. Additionally, stock options expire ten years after the date of grant. The fair value of stock options granted is expensed ratably over their vesting term. Restricted Stock Units (RSUs). The granting of RSUs is provided for under the Equity Incentive Plans. RSUs generally vest on the anniversary of the grant date, with vesting terms that may range from one to five years from the date of grant. The fair value of each RSU granted is equal to the closing price of the Company’s common stock on the date of grant and is generally expensed ratably over the vesting term of the RSU award. The following table summarizes stock option activity during the nine months ended September 30, 2018 under the Equity Incentive Plans, as follows: Weighted Average Options Exercise Price Outstanding as of December 31, 2017 67,188 $ 24.65 Expired (7,826) $ 68.96 Outstanding as of September 30, 2018 59,362 $ 18.81 Exercisable as of September 30, 2018 59,362 $ 18.81 The following table summarizes RSU activity during the nine months ended September 30, 2018 under the Equity Incentive Plans, as follows: Weighted Average Number of Grant-Date Fair Value Shares Per Share Unvested as of December 31, 2017 512,142 $ 4.57 Granted 556,944 $ 2.43 Vested (198,159) $ 4.47 Forfeited (59,582) $ 3.91 Unvested as of September 30, 2018 811,345 $ 3.17 The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of each stock option is affected by the Company’s stock price on the date of grant, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected volatility of the price of the Company’s stock over the expected life of the awards and actual and projected stock option exercise behavior. No stock options were granted during the nine months ended September 30, 2018. The Company utilized a forfeiture rate of 25% during the nine months ended September 30, 2018 and 2017 for estimating the forfeitures of equity compensation granted. The following table summarizes share-based compensation expense included in the Company’s condensed consolidated statements of operations for the nine months ended September 30, 2018 and 2017, as follows: Nine Months Ended September 30, 2018 2017 Share-based compensation expense: Cost of sales $ 79 $ 82 Selling, general and administrative 606 569 Net effect of share-based compensation expense on net income $ 685 $ 651 Reduction in earnings per share: Basic earnings per share $ 0.04 $ 0.04 Diluted earnings per share $ 0.04 $ 0.04 As of September 30, 2018, the Company estimates that pre-tax compensation expense for all unvested share-based RSUs in the amount of approximately $1,347 will be recognized through 2020. The Company expects to satisfy the exercise of stock options and future distribution of shares of restricted stock by issuing new shares of common stock. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2018 | |
LEGAL PROCEEDINGS | |
LEGAL PROCEEDINGS | NOTE 12 — LEGAL PROCEEDINGS The Company is party to a variety of legal proceedings that arise in the normal course of its business. While the results of these legal proceedings cannot be predicted with certainty, management believes that the final outcome of these proceedings will not have a material adverse effect, individually or in the aggregate, on the Company’s results of operations, financial condition or cash flows. Due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s results of operations, financial condition or cash flows. It is possible that if one or more of such matters were decided against the Company, the effects could be material to the Company’s results of operations in the period in which the Company would be required to record or adjust the related liability and could also be material to the Company’s financial condition and cash flows in the periods the Company would be required to pay such liability. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 13 — RECENT ACCOUNTING PRONOUNCEMENTS The Company reviews new accounting standards as issued. Although some of the accounting standards issued or effective in the current fiscal year may be applicable to it, the Company believes that none of the new standards have a significant impact on its condensed consolidated financial statements, except as discussed below. The Company is currently evaluating the impact of the new standards on its condensed consolidated financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. This ASU will require organizations (“lessees”) that lease assets with lease terms of more than twelve months to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Organizations that own the assets leased by lessees (“lessors”) will remain largely unchanged from current guidance. In addition, this ASU will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. This ASU will be effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. In July 2018, FASB issued ASU 2018-11 which provides a practical expedient to adopt the ASU with a cumulative effect at the adoption date without restating prior periods. The Company expects to utilize this practical expedient and plans to adopt the ASU on January 1, 2019. The Company expects to adopt this guidance for leases existing at the date of adoption and expects to recognize a liability and corresponding asset associated with in-scope leases. The Company has commenced identifying its lease population, but is still in the process of determining those amounts to be recognized as liabilities and right of use assets. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), which clarifies the definition of a business. The amendments in this ASU provide a screen to determine when a set (group of assets and activities) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. This ASU became effective for annual reporting periods beginning after December 15, 2017 and interim periods within those fiscal years. The adoption of this ASU had no material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2, which compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill, from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. This ASU will be effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. The Company early adopted this ASU during the second quarter of 2018 and recorded a $4,993 impairment charge as discussed in Note 6 “Goodwill and Other Intangible Assets” of these condensed consolidated financial statements. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2018 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 14 — SEGMENT REPORTING The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker. The Company’s segments and their product and service offerings are summarized below: Towers and Heavy Fabrications The Company manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for multiple megawatt (“MW”) wind turbines, as well as heavy fabrications for mining and other industrial customers. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of up to approximately 550 towers, sufficient to support turbines generating more than 1,100 MW of power. Gearing The Company engineers, builds and remanufactures precision gears and gearing systems for O&G, wind, mining, steel and other industrial applications. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment processes in Neville Island, Pennsylvania. Process Systems The Company acquired Red Wolf on February 1, 2017 and as a result, aggregated its Abilene compressed natural gas (“CNG”) and heavy fabrication business with Red Wolf to form the Process Systems reportable segment. This segment provides contract manufacturing services that include build-to-spec, kitting, fabrication and inventory management for customers throughout the U.S. and in foreign countries, primarily supporting the natural gas electrical generation market. Corporate “Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results. Summary financial information by reportable segment for the three and nine months ended September 30, 2018 and 2017 is as follows: Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Three Months Ended September 30, 2018 Revenues from external customers $ 17,320 $ 10,056 $ 4,069 $ — $ — $ 31,445 Intersegment revenues 11 — 86 — (97) — Net revenues 17,331 10,056 4,155 — (97) 31,445 Operating (loss) profit (755) 346 (917) (1,286) — (2,612) Depreciation and amortization 1,237 566 429 52 — 2,284 Capital expenditures 137 76 11 118 — 342 Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Three Months Ended September 30, 2017 Revenues from external customers $ 15,971 $ 7,570 $ 6,054 $ — $ — $ 29,595 Operating (loss) profit (1,473) (396) 115 (77) — (1,831) Depreciation and amortization 1,122 609 477 59 — 2,267 Capital expenditures 1,423 232 11 2 — 1,668 Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Nine Months Ended September 30, 2018 Revenues from external customers $ 58,105 $ 27,494 $ 12,594 $ — $ — $ 98,193 Intersegment revenues 34 — 86 — (120) — Net revenues 58,139 27,494 12,680 — (120) 98,193 Operating (loss) (1,535) (941) (7,581) (2,828) — (12,885) Depreciation and amortization 3,773 1,742 1,304 171 — 6,990 Capital expenditures 1,335 543 11 129 — 2,018 Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Nine Months Ended September 30, 2017 Revenues from external customers $ 99,194 $ 17,511 $ 12,312 $ — $ — $ 129,017 Operating profit (loss) 7,177 (2,562) (1,805) (3,554) — (744) Depreciation and amortization 3,283 1,847 1,278 163 — 6,571 Capital expenditures 4,812 564 421 175 — 5,972 Total Assets as of September 30, December 31, Segments: 2018 2017 Towers and Heavy Fabrications $ 33,047 $ 27,958 Gearing 37,434 37,456 Process Systems 19,418 26,442 Assets held for sale 19 580 Corporate 253,566 249,326 Eliminations (235,450) (229,412) $ 108,034 $ 112,350 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 — COMMITMENTS AND CONTINGENCIES Environmental Compliance and Remediation Liabilities The Company’s operations and products are subject to a variety of environmental laws and regulations in the jurisdictions in which the Company operates and sells products governing, among other things, air emissions, wastewater discharges, the use, handling and disposal of hazardous materials, soil and groundwater contamination, employee health and safety, and product content, performance and packaging. Certain environmental laws may impose the entire cost or a portion of the cost of investigating and cleaning up a contaminated site, regardless of fault, upon any one or more of a number of parties, including the current or previous owners or operators of the site. These environmental laws also impose liability on any person who arranges for the disposal or treatment of hazardous substances at a contaminated site. Third parties may also make claims against owners or operators of sites and users of disposal sites for personal injuries and property damage associated with releases of hazardous substances from those sites. In connection with the Company’s previous restructuring initiatives, during the third quarter of 2012, the Company identified a liability associated with the planned sale of the Cicero Avenue Facility. The liability was associated with environmental remediation costs that were identified while preparing the site for sale. During 2013, the Company applied for and was accepted into the Illinois Environmental Protection Agency (the “IEPA”) voluntary site remediation program. In the first quarter of 2014, the Company completed a comprehensive review of remedial options for the Cicero Avenue Facility and selected a preferred remediation technology. As part of the voluntary site remediation program, the Company submitted a plan to the IEPA for approval to conduct a pilot study to test the effectiveness of the selected remediation technology. In the fourth quarter of 2017, the Company completed the remediation of the Cicero Avenue Facility which was subsequently sold for $583, net of expenses, in the third quarter of 2018. Warranty Liability The Company provides warranty terms that range from one to five years for various products supplied by the Company. In certain contracts, the Company has recourse provisions for items that would enable recovery from third parties for amounts paid to customers under warranty provisions. As of September 30, 2018 and 2017, estimated product warranty liability was $523 and $596, respectively, and is recorded within accrued liabilities in the Company’s condensed consolidated balance sheets. The changes in the carrying amount of the Company’s total product warranty liability for the nine months ended September 30, 2018 and 2017 were as follows: For the Nine Months Ended September 30, 2018 2017 Balance, beginning of period $ 581 $ 671 Addition to (reduction of) warranty reserve (58) (82) Warranty claims — 7 Balance, end of period $ 523 $ 596 Allowance for Doubtful Accounts Based upon past experience and judgment, the Company establishes an allowance for doubtful accounts with respect to accounts receivable. The Company’s standard allowance estimation methodology considers a number of factors that, based on its collections experience, the Company believes will have an impact on its credit risk and the collectability of its accounts receivable. These factors include individual customer circumstances, history with the Company, the length of the time period during which the account receivable has been past due and other relevant criteria. The Company monitors its collections and write-off experience to assess whether or not adjustments to its allowance estimates are necessary. Changes in trends in any of the factors that the Company believes may impact the collectability of its accounts receivable, as noted above, or modifications to its credit standards, collection practices and other related policies may impact the Company’s allowance for doubtful accounts and its financial results. The activity in the accounts receivable allowance liability for the nine months ended September 30, 2018 and 2017 consisted of the following: For the Nine Months Ended September 30, 2018 2017 Balance at beginning of period $ 225 $ 145 (Recoveries) bad debt expense (47) 56 Write-offs (1) — Balance at end of period $ 177 $ 201 Collateral In select instances, the Company has pledged specific inventory and machinery and equipment assets to serve as collateral on related payable or financing obligations. Liquidated Damages In certain customer contracts, the Company has agreed to pay liquidated damages in the event of qualifying delivery or production delays. These damages are typically limited to a specific percentage of the value of the product in question and/or are dependent on actual losses sustained by the customer. The Company does not believe that this potential exposure will have a material adverse effect on the Company’s consolidated financial position or results of operations. There was no reserve for liquidated damages as of September 30, 2018 or December 31, 2017. Workers’ Compensation Reserves At the beginning of the third quarter of 2013, the Company began to self-insure for its workers’ compensation liabilities, including reserves for self-retained losses. Historical loss experience combined with actuarial evaluation methods and the application of risk transfer programs are used to determine required workers’ compensation reserves. The Company takes into account claims incurred but not reported when determining its workers’ compensation reserves. Although the ultimate outcome of these matters may exceed the amounts recorded and additional losses may be incurred, the Company does not believe that any additional potential exposure for such liabilities will have a material adverse effect on the Company’s consolidated financial position or results of operations. Although the Company entered into a guaranteed cost program at the beginning of the third quarter of 2016, the Company maintained a liability for the trailing claims from the self-insured policy. As of September 30, 2018 and December 31, 2017, the Company had $395 and $812, respectively, accrued for self-insured workers’ compensation liabilities. Other As of December 31, 2017, approximately 24% of the Company’s employees were covered by two collective bargaining agreements with local unions at Brad Foote’s Cicero, Illinois and Neville Island, Pennsylvania locations. The current three-year collective bargaining agreement with the Neville Island union is expected to remain in effect through October 2022. During the third quarter of 2018, a new collective bargaining agreement was negotiated and ratified with the Cicero Union. The new four-year collective bargaining agreement with the Cicero union is expected to remain in effect through February 2022. See Note 16, “New Markets Tax Credit Transaction” of these condensed consolidated financial statements for a discussion of a strategic financing transaction, the NMTC Transaction, which originally related to the Company’s drivetrain service center in Abilene, Texas (the “Abilene Gearbox Facility”), and was amended in August 2015 to also include the activities of the Company’s heavy industries business conducted at the same location in Abilene, Texas (the “Abilene Heavy Industries Facility”). The Abilene Gearbox Facility focused on servicing the growing installed base of MW wind turbines as they come off warranty and, to a limited extent, industrial gearboxes requiring precision repair and testing. The Abilene Heavy Industries Facility focuses on heavy fabrications and assembly for industries including those related to compressed natural gas distribution. Pursuant to the NMTC Transaction, the gross loan and investment in the Abilene Heavy Industries Facility and the Abilene Gearbox Facility of $10,000 is expected to generate $3,900 in tax credits over a period of seven years, which the NMTC Transaction makes available to Capital One, National Association (“Capital One”). The Abilene Heavy Industries Facility and/or the Abilene Gearbox Facility operated and remained in compliance with the terms and conditions of the NMTC Transaction during the seven-year compliance period ending in the third quarter of 2018, allowing Capital One to capture up to $3,900 in tax credits. At the end of the seven year compliance period, Capital One exercised its right to put the investment back to the Company in exchange for $130. The loan was extinguished and the Company recorded a gain of $2,249 in other income, net of transaction expenses. |
NEW MARKETS TAX CREDIT TRANSACT
NEW MARKETS TAX CREDIT TRANSACTION | 9 Months Ended |
Sep. 30, 2018 | |
NEW MARKETS TAX CREDIT TRANSACTION | |
NEW MARKETS TAX CREDIT TRANSACTION | NOTE 16 — NEW MARKETS TAX CREDIT TRANSACTION On July 20, 2011, the Company executed the NMTC Transaction, which was amended on August 24, 2015, involving the following third parties: AMCREF Fund VII, LLC (“AMCREF”), a registered community development entity; COCRF Investor VIII, LLC (“COCRF”); and Capital One. The NMTC Transaction allows the Company to receive below market interest rate funds through the federal New Markets Tax Credit (“NMTC”) program. The Company received $2,280 in proceeds from the NMTC Transaction. The NMTC Transaction qualifies under the NMTC program and included a gross loan from AMCREF to the Company’s wholly-owned subsidiary Broadwind Services, LLC in the principal amount of $10,000, with a term of fifteen years and interest payable at the rate of 1.4% per annum, largely offset by a gross loan in the principal amount of $7,720 from the Company to COCRF, with a term of fifteen years and interest payable at the rate of 2.5% per annum. The August 2015 amendment did not change the financial terms of the NMTC Transaction, but did add the activities and assets of the Abilene Heavy Industries Facility to the NMTC Transaction and allow for the possible sale of the Abilene Gearbox Facility assets, provided that the proceeds of such sale are re-invested in the Abilene Heavy Industries Facility. The NMTC regulations permit taxpayers to claim credits against their federal income taxes for qualified investments in the equity of community development entities. The NMTC Transaction could generate $3,900 in tax credits, which the Company has made available under the structure by passing them through to Capital One. The proceeds have been applied to the Company’s investment in the Abilene Gearbox Facility assets and associated operating costs and in the assets of the Abilene Heavy Industries Facility, as permitted under the amended NMTC Transaction. The Abilene Heavy Industries Facility and/or the Abilene Gearbox Facility had to operate and remain in compliance with various regulations and restrictions through the third quarter of 2018, the end of the seven year compliance period, to comply with the terms of the NMTC Transaction, or the Company may be liable under its indemnification agreement with Capital One for the recapture of tax credits. In the event the Company did not comply with these regulations and restrictions, the NMTC program tax credits could have been subject to 100% recapture for a period of seven years as provided in the IRC. No tax credit recapture events occurred that required the Company to make any payments to Capital One under the indemnification agreement. The Capital One contribution, including a loan origination payment of $320, was included as other assets in the Company’s condensed consolidated balance sheet as of December 31, 2017. Capital One exercised an option to put its investment to the Company and received $130 from the Company at that time. The Capital One contribution, other than the amount allocated to the put obligation, was recognized in income only after the put/call was exercised and when Capital One had no ongoing interest. The Company has determined that two pass‑through financing entities created under the NMTC Transaction structure are variable interest entities (“VIEs”). The ongoing activities of the VIEs—collecting and remitting interest and fees and complying with NMTC program requirements—were considered in the initial design of the NMTC Transaction and are not expected to significantly affect economic performance throughout the life of the VIEs. In making this determination, management also considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees under the NMTC Transaction structure, Capital One’s lack of a material interest in the underlying economics of the project, and the fact that the Company is obligated to absorb losses of the VIEs. The Company has concluded that it is required to consolidate the VIEs because the Company has both (i) the power to direct those matters that most significantly impact the activities of each VIE, and (ii) the obligation to absorb losses or the right to receive benefits of each VIE. The $262 of issue costs paid to third parties in connection with the NMTC Transaction were recorded as prepaid expenses, and were amortized over the expected seven year term of the NMTC arrangement. Capital One’s net contribution of $2,600 was included in Line of credit, NMTC and other notes payable in the condensed consolidated balance sheet at December 31, 2017. Incremental costs to maintain the transaction structure during the compliance period were recognized as they were incurred. At the end of the seven year compliance period, Capital One exercised its right to put the investment back to the Company in exchange for $130. The loan was extinguished and the Company recorded a gain of $2,249 in other income, net of transaction expenses. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2018 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | NOTE 17 — BUSINESS COMBINATIONS Overview On January 30, 2017, the Company announced that it had agreed upon the material terms to acquire Red Wolf, a Sanford, North Carolina-based, privately held fabricator, kitter and assembler of industrial systems primarily supporting the global gas turbine market, for approximately $18,983, subject to certain adjustments. The transaction closed on February 1, 2017, and Red Wolf is being operated as a wholly-owned subsidiary of the Company. Accounting for the Transaction The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations. The guidance requires consideration given, including contingent consideration, assets acquired and liabilities assumed to be valued at their fair market values at the acquisition date. The guidance further provides that: (1) in-process research and development will be recorded at fair value as an indefinite-lived intangible asset; (2) acquisition costs will generally be expensed as incurred, (3) restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and (4) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. ASC 805 requires that any excess of purchase price over fair value of assets acquired, including identifiable intangibles and liabilities assumed, be recognized as goodwill. Red Wolf’s results are included in the Company’s results from the acquisition date of February 1, 2017. The purchase price of the transaction totaled $18,983 net of working capital adjustments that occurred after the acquisition date. The purchase price includes $16,449 which was paid in cash and $2,534 which was the expected value of contingent future earn-out payments. The contingent consideration arrangement required the Company to pay the former owners of Red Wolf a payout if Red Wolf achieved a targeted profitability benchmark. The potential undiscounted amount of all future payments that the Company could have been required to make under the contingent consideration arrangement was between $0 and $9,900. Annual earn-out payments may not exceed $4,950. The fair value of the contingent consideration arrangement of $2,534 was estimated by using a Monte Carlo simulation. Key assumptions included a short-term weighted average cost of capital of 15% and historical volatility of public company comparables. The fair value of the contingent consideration arrangement was determined using significant unobservable inputs, or level 3 in the fair value hierarchy. During the third quarter of 2017, the Company released $1,394 of this contingency into operating income because management determined that Red Wolf’s full-year financial performance during the first year of ownership by the Company was unlikely to meet the threshold required to pay the first installment of the contingent earn-out. During the second quarter of 2018, the Company released the final contingent earn-out liability of $1,140 into operating income as the Company does not expect Red Wolf to achieve the targeted profitability benchmark for the second year of ownership. The release of the earn-out is reflected in the selling, general, and administrative line item of these condensed consolidated statements of operations. The Company’s allocation of the $18,983 purchase price to Red Wolf’s tangible and identifiable intangible assets acquired and liabilities assumed, based on their estimated fair values as of February 1, 2017, is included in the table below. Goodwill is recorded based on the amount by which the purchase price exceeds the fair value of the net assets acquired and is not deductible for tax purposes. The measurement period adjustments were a result of changes in the fair value of the contingent consideration arrangement and adjustments to working capital accounts. The purchase price allocation was finalized at December 31, 2017. The decrease in goodwill from March 31, 2017 is due to opening balance sheet changes noted in the table below. The purchase price allocation as of March 31, 2017 and December 31, 2017 is as follows (in thousands): Allocation as of 3/31/2017 Measurement Period Adjustments Allocation as of 12/31/2017 Assets acquired and liabilities assumed: Cash and cash equivalents $ 63 $ (63) $ - Receivables 2,796 (96) 2,700 Inventories 4,998 179 5,177 Property and equipment 462 - 462 Noncompete agreements 170 - 170 Customer relationships 12,000 - 12,000 Trade names 1,100 - 1,100 Goodwill 5,568 (575) 4,993 Accounts payable (1,354) 2 (1,352) Accrued expenses (809) (67) (876) Deferred tax liabilities (5,391) - (5,391) Total purchase price $ 19,603 $ (620) $ 18,983 The allocation of the purchase price is based on valuations performed to determine the fair value of such assets and liabilities as of the acquisition date. The acquired noncompete agreements, customer relationships, and trade names have weighted average amortization periods of 6.0 years, 9.0 years, and 14.0 years, respectively, and the total weighted average life of the acquired intangible assets is 9.4 years. Goodwill from this transaction has been allocated to the Company’s Process Systems segment. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2018 | |
RESTRUCTURING | |
RESTRUCTURING | NOTE 18 — RESTRUCTURING During the first quarter of 2018, the Company conducted a review of its business strategies and product plans given the outlook of the industries it serves and its business environment. As a result, the Company began to execute a restructuring plan to rationalize its facility capacity and management structure, and to consolidate and increase the efficiencies of its Abilene operations. Management decided to exit the CNG and Fabrication Manufacturing location in Abilene as soon as it fully complied with the requirements established as part of the NMTC Transaction agreement and consolidate these manufacturing activities into other locations. The Company expects to vacate the facility by the end of 2018. All remaining costs associated with this facility have been recorded as restructuring expenses. All costs will be incurred solely within the Process Systems segment. The Company expects to incur restructuring costs associated with the restructuring plan totaling an estimated $721, of which $424 has been incurred to date. The Company anticipates annual cost savings going forward of approximately $575 in facility expenses related to the restructuring. The Company’s total net restructuring charges for the three and nine months ended September 30, 2018, in addition to the total projected restructuring costs, consist of the following: Three Months Ended Nine Months Ended Total September 30, 2018 September 30, 2018 Projected Cost of sales: Facility costs $ 69 $ 215 $ 277 Moving and remediation — 1 152 Salary and severance — 17 17 Depreciation 88 155 239 Total cost of sales 157 388 685 Selling, general, and administrative expenses: Salary and severance — 36 36 Total selling, general, and administrative expenses — 36 36 Grand Total $ 157 $ 424 $ 721 |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
REVENUES | |
Schedule of disaggregation of revenue | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Towers and Heavy Fabrications $ 17,331 $ 15,971 $ 58,139 $ 99,194 Gearing 10,056 7,570 27,494 17,511 Process Systems 4,155 6,054 12,680 12,312 Eliminations (97) - (120) - Consolidated $ 31,445 $ 29,595 $ 98,193 $ 129,017 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
EARNINGS PER SHARE | |
Reconciliation of basic and diluted earnings per share | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic earnings per share calculation: Net (loss) income $ (783) $ (2,207) $ (11,737) $ 3,340 Weighted average number of common shares outstanding 15,541,289 15,094,991 15,390,090 15,013,312 Basic net (loss) income per share $ (0.05) $ (0.15) $ (0.76) $ 0.22 Diluted earnings per share calculation: Net (loss) income $ (783) $ (2,207) $ (11,737) $ 3,340 Weighted average number of common shares outstanding 15,541,289 15,094,991 15,390,090 15,013,312 Common stock equivalents: Stock options and non-vested stock awards (1) — — — 331,196 Weighted average number of common shares outstanding 15,541,289 15,094,991 15,390,090 15,344,508 Diluted net (loss) income per share $ (0.05) $ (0.15) $ (0.76) $ 0.22 (1) Stock options and restricted stock units granted and outstanding of 870,707 are excluded from the computation of diluted earnings for the three and nine months ended September 30, 2018 due to the anti dilutive effect as a result of the Company’s net loss for those respective periods. Stock options and restricted stock units granted and outstanding of 593,583 are excluded from the computation of diluted earnings for the three months ended September 30, 2017 due to the anti dilutive effect as a result of the Company’s net loss for that period. Stock options outstanding of 47,033 for the nine months ended September 30, 2017 are excluded from the computation of diluted earnings as the strike price was greater than the fair market value as of September 30, 2017. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
DISCONTINUED OPERATIONS | |
Schedule of assets and liabilities held for sale | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ — $ 23 $ 1 $ 150 Cost of sales (32) (195) (90) (350) Selling, general and administrative (1) 14 (4) (44) Impairment of held for sale assets and liabilities and gain on sale of assets — — — (161) Loss from discontinued operations $ (33) $ (158) $ (93) $ (405) Assets and Liabilities Held for Sale Services assets and liabilities classified as held for sale in the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 include the following: September 30, December 31, 2018 2017 Assets: Accounts receivable, net $ 10 $ 11 Inventories, net 9 9 Total Assets Held For Sale Related To Discontinued Operations $ 19 $ 20 Liabilities: Accrued liabilities $ 27 $ 27 Customer deposits and other current obligations 1 3 Total Liabilities Held For Sale Related To Discontinued Operations $ 28 $ 30 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
INVENTORIES | |
Schedule of the components of inventories from operations | September 30, December 31, 2018 2017 Raw materials $ 15,154 $ 11,945 Work-in-process 7,061 6,305 Finished goods 3,448 3,538 25,663 21,788 Less: Reserve for excess and obsolete inventory (2,122) (2,509) Net inventories $ 23,541 $ 19,279 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of Goodwill and Intangible assets | September 30, 2018 December 31, 2017 Remaining Remaining Weighted Weighted Net Average Net Average Cost Accumulated Impairment Book Amortization Cost Accumulated Book Amortization Basis Amortization Charge Value Period Basis Amortization Value Period Goodwill and other intangible assets: Goodwill $ 4,993 $ — $ (4,993) $ — $ 4,993 $ — $ 4,993 Noncompete agreements 170 (47) — 123 4.3 170 (26) 144 Customer relationships 15,979 (6,025) — 9,954 7.3 15,979 (4,992) 10,987 8.0 Trade names 9,099 (4,511) — 4,588 9.7 9,099 (4,152) 4,947 10.5 Other intangible assets $ 25,248 $ (10,583) $ — $ 14,665 6.8 $ 25,248 $ (9,170) $ 16,078 8.8 |
Schedule of estimated future amortization expense | As of September 30, 2018, estimated future amortization expense is as follows: 2018 $ 471 2019 1,884 2020 1,884 2021 1,884 2022 1,884 2023 and thereafter 6,658 Total $ 14,665 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
ACCRUED LIABILITIES | |
Schedule of accrued liabilities | September 30, December 31, 2018 2017 Accrued payroll and benefits $ 2,310 $ 1,797 Accrued property taxes 464 144 Income taxes payable 8 77 Accrued professional fees 55 40 Accrued warranty liability 523 581 Accrued self-insurance reserve 395 812 Accrued other 1,065 942 Total accrued liabilities $ 4,820 $ 4,393 |
DEBT AND CREDIT AGREEMENTS (Tab
DEBT AND CREDIT AGREEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
DEBT AND CREDIT AGREEMENTS | |
Schedule of outstanding debt balances | September 30, December 31, 2018 2017 Line of credit $ 18,765 $ 10,733 NMTC note payable — 2,600 Other notes payable 2,109 1,146 Long-term debt 570 570 Less: Current portion (19,684) (14,252) Long-term debt, net of current maturities $ 1,760 $ 797 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
FAIR VALUE MEASUREMENTS | |
Schedule of the fair values of the Company's financial assets | September 30, 2018 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Services assets 19 19 Total assets at fair value $ — $ — $ 19 $ 19 December 31, 2017 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Gearing Cicero Ave. facility — — 560 560 Services assets — — 20 20 Total assets at fair value $ — $ — $ 580 $ 580 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
SHARE-BASED COMPENSATION | |
Schedule of stock option activity | Weighted Average Options Exercise Price Outstanding as of December 31, 2017 67,188 $ 24.65 Expired (7,826) $ 68.96 Outstanding as of September 30, 2018 59,362 $ 18.81 Exercisable as of September 30, 2018 59,362 $ 18.81 |
Schedule of RSU activity | Weighted Average Number of Grant-Date Fair Value Shares Per Share Unvested as of December 31, 2017 512,142 $ 4.57 Granted 556,944 $ 2.43 Vested (198,159) $ 4.47 Forfeited (59,582) $ 3.91 Unvested as of September 30, 2018 811,345 $ 3.17 |
Schedule of share-based compensation expense, net of taxes withheld | Nine Months Ended September 30, 2018 2017 Share-based compensation expense: Cost of sales $ 79 $ 82 Selling, general and administrative 606 569 Net effect of share-based compensation expense on net income $ 685 $ 651 Reduction in earnings per share: Basic earnings per share $ 0.04 $ 0.04 Diluted earnings per share $ 0.04 $ 0.04 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
SEGMENT REPORTING | |
Schedule of financial information by reportable segment | Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Three Months Ended September 30, 2018 Revenues from external customers $ 17,320 $ 10,056 $ 4,069 $ — $ — $ 31,445 Intersegment revenues 11 — 86 — (97) — Net revenues 17,331 10,056 4,155 — (97) 31,445 Operating (loss) profit (755) 346 (917) (1,286) — (2,612) Depreciation and amortization 1,237 566 429 52 — 2,284 Capital expenditures 137 76 11 118 — 342 Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Three Months Ended September 30, 2017 Revenues from external customers $ 15,971 $ 7,570 $ 6,054 $ — $ — $ 29,595 Operating (loss) profit (1,473) (396) 115 (77) — (1,831) Depreciation and amortization 1,122 609 477 59 — 2,267 Capital expenditures 1,423 232 11 2 — 1,668 Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Nine Months Ended September 30, 2018 Revenues from external customers $ 58,105 $ 27,494 $ 12,594 $ — $ — $ 98,193 Intersegment revenues 34 — 86 — (120) — Net revenues 58,139 27,494 12,680 — (120) 98,193 Operating (loss) (1,535) (941) (7,581) (2,828) — (12,885) Depreciation and amortization 3,773 1,742 1,304 171 — 6,990 Capital expenditures 1,335 543 11 129 — 2,018 Towers and Process Heavy Fabrications Gearing Systems Corporate Eliminations Consolidated For the Nine Months Ended September 30, 2017 Revenues from external customers $ 99,194 $ 17,511 $ 12,312 $ — $ — $ 129,017 Operating profit (loss) 7,177 (2,562) (1,805) (3,554) — (744) Depreciation and amortization 3,283 1,847 1,278 163 — 6,571 Capital expenditures 4,812 564 421 175 — 5,972 Total Assets as of September 30, December 31, Segments: 2018 2017 Towers and Heavy Fabrications $ 33,047 $ 27,958 Gearing 37,434 37,456 Process Systems 19,418 26,442 Assets held for sale 19 580 Corporate 253,566 249,326 Eliminations (235,450) (229,412) $ 108,034 $ 112,350 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of changes in the carrying amount of the total product warranty liability | For the Nine Months Ended September 30, 2018 2017 Balance, beginning of period $ 581 $ 671 Addition to (reduction of) warranty reserve (58) (82) Warranty claims — 7 Balance, end of period $ 523 $ 596 |
Schedule of the activity in the accounts receivable allowance liability | For the Nine Months Ended September 30, 2018 2017 Balance at beginning of period $ 225 $ 145 (Recoveries) bad debt expense (47) 56 Write-offs (1) — Balance at end of period $ 177 $ 201 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
BUSINESS COMBINATIONS | |
Summary of preliminary purchase price allocation based on estimated fair values of assets acquired and liabilities assumed as of the acquisition date | The purchase price allocation as of March 31, 2017 and December 31, 2017 is as follows (in thousands): Allocation as of 3/31/2017 Measurement Period Adjustments Allocation as of 12/31/2017 Assets acquired and liabilities assumed: Cash and cash equivalents $ 63 $ (63) $ - Receivables 2,796 (96) 2,700 Inventories 4,998 179 5,177 Property and equipment 462 - 462 Noncompete agreements 170 - 170 Customer relationships 12,000 - 12,000 Trade names 1,100 - 1,100 Goodwill 5,568 (575) 4,993 Accounts payable (1,354) 2 (1,352) Accrued expenses (809) (67) (876) Deferred tax liabilities (5,391) - (5,391) Total purchase price $ 19,603 $ (620) $ 18,983 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
RESTRUCTURING | |
Schedule of total restructuring charges incurred to date and the total expected restructuring charges | Three Months Ended Nine Months Ended Total September 30, 2018 September 30, 2018 Projected Cost of sales: Facility costs $ 69 $ 215 $ 277 Moving and remediation — 1 152 Salary and severance — 17 17 Depreciation 88 155 239 Total cost of sales 157 388 685 Selling, general, and administrative expenses: Salary and severance — 36 36 Total selling, general, and administrative expenses — 36 36 Grand Total $ 157 $ 424 $ 721 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Thousands | Jul. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2018USD ($)segment$ / sharesshares | Dec. 31, 2017$ / shares |
Description of Business | ||||
Number of reportable segments | segment | 3 | |||
Revenue as a percentage of sales associated with new wind turbine installations | 55.00% | |||
RESTRUCTURING | ||||
Restructuring Costs | $ 424 | |||
Liquidity | ||||
Total debt and capital lease obligations | $ 23,216 | 23,216 | ||
Obligation to make principal payments on outstanding debt during the next twelve months | 20,638 | 20,638 | ||
Outstanding indebtedness under the Credit Facility | $ 18,765 | $ 18,765 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Sales agent commission percentage | 3.00% | |||
Sale of common stock, net (shares) | shares | 15,112 | |||
Proceeds from issuance of stock | $ 33 | |||
Commission paid to agent | 1 | |||
ATM common stock available for issuance | 9,967 | $ 9,967 | ||
Common Stock | ||||
Liquidity | ||||
Sale of common stock, net (shares) | shares | 15,112 | |||
New Markets Tax Credit Transaction | ||||
Liquidity | ||||
NMTC note payable | $ 2,600 | $ 2,600 | ||
Minimum | ||||
Liquidity | ||||
Number of months cash resources adequate to meet Company's liquidity needs | 12 months | |||
Maximum | ||||
Liquidity | ||||
Proceeds from issuance of stock | $ 10,000 |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 31,445 | $ 29,595 | $ 98,193 | $ 129,017 |
Revenue remaining performance obligation, practical expedient | true | |||
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (97) | $ (120) | ||
Towers and Heavy Fabrications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,331 | 15,971 | 58,139 | 99,194 |
Process Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,155 | 6,054 | 12,680 | 12,312 |
Gearing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 10,056 | $ 7,570 | $ 27,494 | $ 17,511 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
NET (LOSS) INCOME PER COMMON SHARE—BASIC: | |||||
Net (loss) income | $ (783) | $ (2,207) | $ (11,737) | $ 3,340 | $ (3,641) |
Weighted average number of common shares outstanding | 15,541,289 | 15,094,991 | 15,390,090 | 15,013,312 | |
Basic net (loss) income per share | $ (0.05) | $ (0.15) | $ (0.76) | $ 0.22 | |
NET (LOSS) INCOME PER COMMON SHARE-DILUTED: | |||||
Net (loss) income | $ (783) | $ (2,207) | $ (11,737) | $ 3,340 | |
Weighted average number of common shares outstanding | 15,541,289 | 15,094,991 | 15,390,090 | 15,013,312 | |
Common stock equivalents: | |||||
Stock options and non-vested stock awards (in shares) | 331,196 | ||||
Weighted average number of common shares outstanding | 15,541,289 | 15,094,991 | 15,390,090 | 15,344,508 | |
Diluted net (loss) income per share | $ (0.05) | $ (0.15) | $ (0.76) | $ 0.22 | |
Stock options and restricted stock units granted and outstanding excluded from the computation of diluted earnings per share, due to the anti-dilutive effect (in shares) | 870,707 | 593,583 | 870,707 | 47,033 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015item | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
DISCONTINUED OPERATIONS | ||||||
Loss from discontinued operations | $ 33 | $ 158 | $ 93 | $ 405 | ||
Results of operations, which are reflected as discontinued operations | ||||||
LOSS FROM DISCONTINUED OPERATIONS | (33) | (158) | (93) | (405) | ||
Minimum | ||||||
DISCONTINUED OPERATIONS | ||||||
Number of third-party purchasers | item | 1 | |||||
Discontinued Operations, Held-for-sale | ||||||
Assets: | ||||||
Accounts receivable, net | 10 | 10 | $ 11 | |||
Inventories, net | 9 | 9 | 9 | |||
Assets Held For Sale Related To Discontinued Operations | 19 | 19 | 20 | |||
Liabilities: | ||||||
Accrued liabilities | 27 | 27 | 27 | |||
Customer deposits and other current obligations | 1 | 1 | 3 | |||
Total Liabilities Held For Sale Related To Discontinued Operations | 28 | 28 | $ 30 | |||
Service Segment | ||||||
DISCONTINUED OPERATIONS | ||||||
Loss from discontinued operations | 33 | 158 | 93 | 405 | ||
Results of operations, which are reflected as discontinued operations | ||||||
Revenues | 23 | 1 | 150 | |||
Cost of sales | (32) | (195) | (90) | (350) | ||
Selling, general and administrative | 14 | |||||
Selling, general and administrative | (1) | (4) | (44) | |||
Impairment of held for sale assets and liabilities and gain on sale of assets | (161) | |||||
LOSS FROM DISCONTINUED OPERATIONS | $ (33) | $ (158) | $ (93) | $ (405) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
INVENTORIES | ||
Raw materials | $ 15,154 | $ 11,945 |
Work-in-process | 7,061 | 6,305 |
Finished goods | 3,448 | 3,538 |
Gross inventories | 25,663 | 21,788 |
Less: Reserve for excess and obsolete inventory | (2,122) | (2,509) |
Net inventories | $ 23,541 | $ 19,279 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
INTANGIBLE ASSETS | |||
Goodwill | $ 4,993 | ||
Impairment charge | $ (4,993) | ||
Cost Basis | 25,248 | 25,248 | |
Accumulated Amortization | (10,583) | (9,170) | |
Net Book Value | $ 14,665 | $ 16,078 | |
Remaining Weighted Average Amortization Period | 6 years 9 months 18 days | 8 years 9 months 18 days | |
Estimated future amortization expense | |||
2,018 | $ 471 | ||
2,019 | 1,884 | ||
2,020 | 1,884 | ||
2,021 | 1,884 | ||
2,022 | 1,884 | ||
2023 and thereafter | 6,658 | ||
Net Book Value | 14,665 | $ 16,078 | |
Gearing | |||
INTANGIBLE ASSETS | |||
Impairment of assets | $ 0 | ||
Minimum | |||
INTANGIBLE ASSETS | |||
Remaining Weighted Average Amortization Period | 4 years | ||
Maximum | |||
INTANGIBLE ASSETS | |||
Remaining Weighted Average Amortization Period | 10 years | ||
Noncompete agreements | |||
INTANGIBLE ASSETS | |||
Cost Basis | $ 170 | 170 | |
Accumulated Amortization | (47) | (26) | |
Net Book Value | $ 123 | $ 144 | |
Remaining Weighted Average Amortization Period | 4 years 3 months 18 days | 5 years 1 month 6 days | |
Estimated future amortization expense | |||
Net Book Value | $ 123 | $ 144 | |
Customer relationships | |||
INTANGIBLE ASSETS | |||
Cost Basis | 15,979 | 15,979 | |
Accumulated Amortization | (6,025) | (4,992) | |
Net Book Value | $ 9,954 | $ 10,987 | |
Remaining Weighted Average Amortization Period | 7 years 3 months 18 days | 8 years | |
Estimated future amortization expense | |||
Net Book Value | $ 9,954 | $ 10,987 | |
Trade names | |||
INTANGIBLE ASSETS | |||
Cost Basis | 9,099 | 9,099 | |
Accumulated Amortization | (4,511) | (4,152) | |
Net Book Value | $ 4,588 | $ 4,947 | |
Remaining Weighted Average Amortization Period | 9 years 8 months 12 days | 10 years 6 months | |
Estimated future amortization expense | |||
Net Book Value | $ 4,588 | $ 4,947 | |
Red Wolf | |||
INTANGIBLE ASSETS | |||
Goodwill | $ 4,993 | $ 5,568 | |
Impairment of assets | $ 0 | ||
Remaining Weighted Average Amortization Period | 9 years 4 months 24 days | ||
Red Wolf | Noncompete agreements | |||
INTANGIBLE ASSETS | |||
Remaining Weighted Average Amortization Period | 6 years | ||
Red Wolf | Customer relationships | |||
INTANGIBLE ASSETS | |||
Remaining Weighted Average Amortization Period | 9 years | ||
Red Wolf | Trade names | |||
INTANGIBLE ASSETS | |||
Remaining Weighted Average Amortization Period | 14 years | ||
Red Wolf | Measurement Input, Discount Rate [Member] | |||
INTANGIBLE ASSETS | |||
Weighted average cost of capital | 15.00% | ||
Red Wolf | Measurement Input, Discount Rate [Member] | Goodwill | |||
INTANGIBLE ASSETS | |||
Weighted average cost of capital | 18.60% |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
ACCRUED LIABILITIES | ||||
Accrued payroll and benefits | $ 2,310 | $ 1,797 | ||
Accrued property taxes | 464 | 144 | ||
Income taxes payable | 8 | 77 | ||
Accrued professional fees | 55 | 40 | ||
Accrued warranty liability | 523 | 581 | $ 596 | $ 671 |
Accrued self-insurance reserve | 395 | 812 | ||
Accrued other | 1,065 | 942 | ||
Total accrued liabilities | $ 4,820 | $ 4,393 |
DEBT AND CREDIT AGREEMENTS (Det
DEBT AND CREDIT AGREEMENTS (Details) - USD ($) $ in Thousands | Oct. 26, 2016 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Credit Facilities | |||||
Line of credit | $ 18,765 | $ 18,765 | |||
Less: Current portion | (19,684) | (19,684) | $ (14,252) | ||
Long-term debt, net of current maturities | 1,760 | 1,760 | 797 | ||
Current borrowing capacity | 5,811 | 5,811 | |||
Extinguishment gain | 2,249 | ||||
Current maturities of long-term debt | 114 | ||||
New Markets Tax Credit Transaction | |||||
Credit Facilities | |||||
Short-term Non-bank Loans and Notes Payable | 2,600 | 2,600 | |||
Extinguishment gain | 2,249 | ||||
Capital Expenditure loan | |||||
Credit Facilities | |||||
Long-term debt | 2,109 | 2,109 | 1,146 | ||
Current maturities of long-term debt | $ 919 | $ 919 | 804 | ||
Interest rate (as a percent) | 5.00% | 5.00% | |||
Capital Expenditure loan | Minimum | |||||
Credit Facilities | |||||
Monthly payments on notes payable | $ 3 | ||||
Capital Expenditure loan | Maximum | |||||
Credit Facilities | |||||
Monthly payments on notes payable | 36 | ||||
Development Corporation of Abilene loan | |||||
Credit Facilities | |||||
Long-term debt | $ 570 | 570 | 570 | ||
Credit facility | |||||
Credit Facilities | |||||
Maximum borrowing capacity | $ 20,000 | $ 25,000 | |||
Line of credit facilities, term of credit agreements | 3 years | ||||
Maximum borrowing capacity of the face value of eligible A/R (as a percent) | 85.00% | ||||
Maximum percentage of book value of inventories that may be financed | 50.00% | ||||
Maximum borrowing capacity of the face value of machinery, equipment and property that may be financed | 50.00% | ||||
Annual unused line fee (as a percent) | 0.50% | ||||
Credit facility | Minimum | |||||
Credit Facilities | |||||
Variable rate basis | 2.25% | ||||
Interest rate margin (as a percent) | 0.00% | ||||
Credit facility | Maximum | |||||
Credit Facilities | |||||
Maximum borrowing capacity | $ 10,000 | ||||
Variable rate basis | 3.00% | ||||
Interest rate margin (as a percent) | 1.00% | ||||
Line of credit | |||||
Credit Facilities | |||||
Line of credit | $ 18,765 | $ 18,765 | 10,733 | ||
Term loans and notes payable | New Markets Tax Credit Transaction | |||||
Credit Facilities | |||||
Short-term Non-bank Loans and Notes Payable | $ 2,600 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)facility | Dec. 31, 2017USD ($) | |
FAIR VALUE MEASUREMENTS | |||
Total assets at fair value | $ 19 | $ 19 | $ 580 |
Gearing Cicero Ave. facility | |||
FAIR VALUE MEASUREMENTS | |||
Number of facilities | facility | 1 | ||
Gain (Loss) on Disposition of Property Plant Equipment | 23 | ||
Level 3 | |||
FAIR VALUE MEASUREMENTS | |||
Total assets at fair value | 19 | $ 19 | 580 |
Nonrecurring | Gearing Cicero Ave. facility | |||
FAIR VALUE MEASUREMENTS | |||
Property plant and equipment at fair value | 560 | ||
Nonrecurring | Services assets | |||
FAIR VALUE MEASUREMENTS | |||
Property plant and equipment at fair value | 19 | 19 | 20 |
Nonrecurring | Level 3 | Gearing Cicero Ave. facility | |||
FAIR VALUE MEASUREMENTS | |||
Property plant and equipment at fair value | 560 | ||
Nonrecurring | Level 3 | Services assets | |||
FAIR VALUE MEASUREMENTS | |||
Property plant and equipment at fair value | $ 19 | $ 19 | $ 20 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
INCOME TAXES | |||||
(Benefit) provision for income taxes | $ (13) | $ 22 | $ 20 | $ 5,056 | |
Other tax expense (benefit) | $ 5,060 | ||||
Operating Loss Carryforwards | $ 227,871 |
INCOME TAXES STOCKHOLDER RIGHTS
INCOME TAXES STOCKHOLDER RIGHTS PLAN (Details) $ / shares in Units, $ in Thousands | Feb. 05, 2016 | Feb. 13, 2013$ / sharesshares | Feb. 13, 2013item$ / sharesshares | Feb. 12, 2013 | Sep. 30, 2018USD ($) |
Rights Plan | |||||
Unrecognized tax benefits | $ 0 | ||||
Accrued interest or penalties related to uncertain tax positions recognized | $ 0 | ||||
Series A Junior Participating Preferred Stock | |||||
Rights Plan | |||||
Preservation period of tax assets | 3 years | ||||
Number of rights for each outstanding share of common stock | item | 1 | ||||
Number of preferred share purchase rights for each outstanding share of the company's common stock | shares | 0.001 | 0.001 | |||
Exercise price (in dollars per right) | $ / shares | $ 9.81 | $ 9.81 | |||
Series A Junior Participating Preferred Stock | Minimum | |||||
Rights Plan | |||||
Beneficial ownership percentage of any person or group, together with its affiliates and associates | 4.90% | ||||
Threshold percentage of beneficial ownership for significant dilution of ownership interest | 4.90% | ||||
Current beneficial ownership percentage that will not trigger the preferred share purchase rights unless they acquire additional shares | 4.90% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
2007 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares of common stock reserved for grants | 691,051 |
Common stock issued under share-based compensation plan | 253,659 |
2012 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares of common stock reserved for grants | 1,200,000 |
Common stock issued under share-based compensation plan | 635,089 |
2015 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares of common stock reserved for grants | 1,100,000 |
Common stock issued under share-based compensation plan | 340,511 |
Stock Options | |
SHARE-BASED COMPENSATION | |
Expiration term | 10 years |
Summary of the stock option activity | |
Outstanding at the beginning of the period (in shares) | 67,188 |
Granted (in shares) | 0 |
Expired (in shares) | (7,826) |
Outstanding at the end of the period (in shares) | 59,362 |
Exercisable (in shares) | 59,362 |
Weighted Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 24.65 |
Expired (in dollars per share) | $ / shares | 68.96 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 18.81 |
Exercisable (in dollars per share) | $ / shares | $ 18.81 |
Stock Options | 2007 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares reserved | 25,233 |
Stock Options | 2012 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares reserved | 34,129 |
Stock Options | Minimum | |
SHARE-BASED COMPENSATION | |
Vesting term | 1 year |
Stock Options | Maximum | |
SHARE-BASED COMPENSATION | |
Vesting term | 5 years |
RSU | 2007 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares reserved | 0 |
RSU | 2015 EIP | |
SHARE-BASED COMPENSATION | |
Number of shares reserved | 811,345 |
RSU | Minimum | |
SHARE-BASED COMPENSATION | |
Vesting term | 1 year |
RSU | Maximum | |
SHARE-BASED COMPENSATION | |
Vesting term | 5 years |
SHARE-BASED COMPENSATION INCENT
SHARE-BASED COMPENSATION INCENTIVE PLANS (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted Average Grant-Date Fair Value Per RSU | ||
Forfeiture rate (as percent) | 25.00% | 25.00% |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |
RSU | ||
Summary of the restricted stock unit activity | ||
Unvested at the beginning of the period (in shares) | 512,142 | |
Granted (in shares) | 556,944 | |
Vested (in shares) | (198,159) | |
Forfeited (in shares) | (59,582) | |
Unvested at the end of the period (in shares) | 811,345 | |
Weighted Average Grant-Date Fair Value Per RSU | ||
Unvested at the beginning of the period (in dollars per share) | $ 4.57 | |
Granted (in dollars per share) | 2.43 | |
Vested (in dollars per share) | 4.47 | |
Forfeited (in dollars per share) | 3.91 | |
Unvested at the end of the period (in dollars per share) | $ 3.17 |
SHARE-BASED COMPENSATION OTHER
SHARE-BASED COMPENSATION OTHER (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Summary of share-based compensation expense | ||
Net effect of share-based compensation expense on net loss | $ 685 | $ 651 |
Reduction in earnings per share: | ||
Basic earnings per share | $ 0.04 | $ 0.04 |
Diluted earnings per share | $ 0.04 | $ 0.04 |
Pre-tax compensation expense for all unvested share-based awards | $ 1,347 | |
Cost of sales | ||
Summary of share-based compensation expense | ||
Share-based compensation expense | 79 | $ 82 |
Selling, general and administrative | ||
Summary of share-based compensation expense | ||
Share-based compensation expense | $ 606 | $ 569 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Impairment charges | $ 4,993 |
Accounting Standards Update 2017-04 [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | |
Impairment charges | $ 4,993 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)facilityitemMW | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
SEGMENT REPORTING | |||||
Revenues from external customers | $ 31,445 | $ 98,193 | |||
Revenues | 31,445 | $ 29,595 | 98,193 | $ 129,017 | |
Operating profit (loss) | (2,612) | (1,831) | (12,885) | (744) | |
Depreciation and amortization | 2,284 | 2,267 | 6,990 | 6,571 | |
Capital expenditures | 342 | 1,668 | 2,018 | 5,972 | |
Total Assets | 108,034 | $ 108,034 | $ 112,350 | ||
Towers and Heavy Fabrications | |||||
SEGMENT REPORTING | |||||
Number of facilities | facility | 2 | ||||
Revenues from external customers | 17,320 | $ 58,105 | |||
Intersegment revenues | 11 | 34 | |||
Revenues | 17,331 | 15,971 | 58,139 | 99,194 | |
Operating profit (loss) | (755) | (1,473) | (1,535) | 7,177 | |
Depreciation and amortization | 1,237 | 1,122 | 3,773 | 3,283 | |
Capital expenditures | 137 | 1,423 | $ 1,335 | 4,812 | |
Towers and Heavy Fabrications | Maximum | |||||
SEGMENT REPORTING | |||||
Annual tower production capacity (in towers) | item | 550 | ||||
Towers and Heavy Fabrications | Minimum | |||||
SEGMENT REPORTING | |||||
Power generating capacity of turbines that towers produced annually can support (in megawatts) | MW | 1,100 | ||||
Gearing | |||||
SEGMENT REPORTING | |||||
Revenues from external customers | 10,056 | $ 27,494 | |||
Revenues | 10,056 | 7,570 | 27,494 | 17,511 | |
Operating profit (loss) | 346 | (396) | (941) | (2,562) | |
Depreciation and amortization | 566 | 609 | 1,742 | 1,847 | |
Capital expenditures | 76 | 232 | 543 | 564 | |
Process Systems | |||||
SEGMENT REPORTING | |||||
Revenues from external customers | 4,069 | 12,594 | |||
Intersegment revenues | 86 | 86 | |||
Revenues | 4,155 | 6,054 | 12,680 | 12,312 | |
Operating profit (loss) | (917) | 115 | (7,581) | (1,805) | |
Depreciation and amortization | 429 | 477 | 1,304 | 1,278 | |
Capital expenditures | 11 | 11 | 11 | 421 | |
Corporate | |||||
SEGMENT REPORTING | |||||
Operating profit (loss) | (1,286) | (77) | (2,828) | (3,554) | |
Depreciation and amortization | 52 | 59 | 171 | 163 | |
Capital expenditures | 118 | $ 2 | 129 | $ 175 | |
Operating segments | |||||
SEGMENT REPORTING | |||||
Total Assets | 108,034 | 108,034 | 112,350 | ||
Operating segments | Towers and Heavy Fabrications | |||||
SEGMENT REPORTING | |||||
Total Assets | 33,047 | 33,047 | 27,958 | ||
Operating segments | Gearing | |||||
SEGMENT REPORTING | |||||
Total Assets | 37,434 | 37,434 | 37,456 | ||
Operating segments | Process Systems | |||||
SEGMENT REPORTING | |||||
Total Assets | 19,418 | 19,418 | 26,442 | ||
Operating segments | Assets held for sale | |||||
SEGMENT REPORTING | |||||
Total Assets | 19 | 19 | 580 | ||
Operating segments | Corporate | |||||
SEGMENT REPORTING | |||||
Total Assets | 253,566 | 253,566 | 249,326 | ||
Eliminations | |||||
SEGMENT REPORTING | |||||
Intersegment revenues | (97) | (120) | |||
Revenues | (97) | (120) | |||
Total Assets | $ (235,450) | $ (235,450) | $ (229,412) |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Environmental Compliance and Remediation Liabilities | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 583 | $ 5 | |
Changes in the carrying amount of the total product warranty liability | |||
Balance, beginning of period | 581 | 671 | |
Addition to (reduction of) warranty reserve | (58) | (82) | |
Warranty claims | 7 | ||
Balance, end of period | 523 | 596 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | 225 | 145 | |
(Recoveries) bad debt expense | (47) | 56 | |
Write-offs | (1) | ||
Balance at end of period | 177 | $ 201 | |
Liquidated Damages | |||
Reserve for liquidated damages | 0 | ||
Workers' Compensation Reserves | |||
Amount accrued for self-insured workers' compensation claims | $ 395 | $ 812 | |
Minimum | |||
Environmental Compliance and Remediation Liabilities | |||
Term of warranty | 1 year | ||
Maximum | |||
Environmental Compliance and Remediation Liabilities | |||
Term of warranty | 5 years |
COMMITMENTS AND CONTINGENCIES O
COMMITMENTS AND CONTINGENCIES OTHER (Details) - Total Company Employees - Coverage under collective bargaining agreements | 12 Months Ended |
Dec. 31, 2017agreement | |
Collective bargaining agreements | |
Percentage of company's employees covered | 24.00% |
Number of agreements | 2 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES NEW MARKETS TAX CREDIT TRANSACTION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Jul. 20, 2011 | |
New Markets Tax Credit program | |||
Extinguishment gain | $ 2,249 | ||
New Markets Tax Credit Transaction | |||
New Markets Tax Credit program | |||
Future tax credit that can be generated | $ 3,900 | ||
Tax credit period | 7 years | ||
Period which facility must operate and be in compliance | 7 years | ||
Estimated SEC Inquiry settlement recorded | $ 3,900 | $ 3,900 | |
Obligation under Put Option | 130 | $ 130 | |
Extinguishment gain | $ 2,249 | ||
New Markets Tax Credit Transaction | Broadwind Services, LLC | |||
New Markets Tax Credit program | |||
Gross loan from AMCREF to Broadwind Services | $ 10,000 |
NEW MARKETS TAX CREDIT TRANSA_2
NEW MARKETS TAX CREDIT TRANSACTION (Details) $ in Thousands | Jul. 20, 2011USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)item |
New Markets Tax Credit Transaction | |||
Extinguishment gain | $ 2,249 | ||
New Markets Tax Credit Transaction | |||
New Markets Tax Credit Transaction | |||
Proceeds from transaction | $ 2,280 | ||
Gross loan in the principal amount from the Company to COCRF Investor VIII, LLC | $ 7,720 | $ 7,720 | |
Receivable term | 15 years | ||
Interest rate on loan (as a percent) | 2.50% | ||
Potential tax credit that can be generated under the NMTC transaction | 3,900 | $ 3,900 | |
Period which facility must operate and be in compliance | 7 years | ||
Percentage of recapture to which the tax credits are subject | 100.00% | ||
Loan origination payment | $ 320 | ||
Company's obligation if Capital One exercises its option to put its investment | 130 | $ 130 | |
Number of pass-through financing entities created under the structure that are deemed variable interest entities | item | 2 | ||
Issue costs paid to third parties recorded as prepaid expenses | 262 | ||
Amortization period for prepaid expenses for the NMTC arrangement | 7 years | ||
NMTC note payable | 2,600 | $ 2,600 | |
Extinguishment gain | $ 2,249 | ||
Broadwind Services, LLC | New Markets Tax Credit Transaction | |||
New Markets Tax Credit Transaction | |||
Principal amount | $ 10,000 | ||
Debt instrument maturity term (in years) | 15 years | ||
Interest rate (as a percent) | 1.40% | 1.40% |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Feb. 01, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | $ 16,449 | |||||
Fair value of the contingent consideration | 2,534 | |||||
Assets acquired and liabilities assumed: | ||||||
Goodwill | $ 4,993 | $ 4,993 | ||||
Weighted average amortization period | 6 years 9 months 18 days | 8 years 9 months 18 days | ||||
Noncompete agreements | ||||||
Assets acquired and liabilities assumed: | ||||||
Weighted average amortization period | 4 years 3 months 18 days | 5 years 1 month 6 days | ||||
Customer relationships | ||||||
Assets acquired and liabilities assumed: | ||||||
Weighted average amortization period | 7 years 3 months 18 days | 8 years | ||||
Trade names | ||||||
Assets acquired and liabilities assumed: | ||||||
Weighted average amortization period | 9 years 8 months 12 days | 10 years 6 months | ||||
Minimum | ||||||
Assets acquired and liabilities assumed: | ||||||
Weighted average amortization period | 4 years | |||||
Maximum | ||||||
Assets acquired and liabilities assumed: | ||||||
Weighted average amortization period | 10 years | |||||
Red Wolf | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | $ 16,449 | |||||
Fair value of the contingent consideration | 2,534 | |||||
Consideration recorded in accrued liabilities | $ 1,394 | |||||
Consideration recorded in other long term liabilities | $ 1,140 | |||||
Assets acquired and liabilities assumed: | ||||||
Cash and cash equivalents | $ 63 | |||||
Adjustments-Cash and cash equivalents | (63) | |||||
Receivables | 2,700 | $ 2,700 | 2,796 | |||
Adjustments-Receivables | (96) | |||||
Inventories | 5,177 | 5,177 | 4,998 | |||
Adjustments-Inventories | 179 | |||||
Property and equipment | 462 | 462 | 462 | |||
Goodwill | 4,993 | 4,993 | 5,568 | |||
Adjustments-Goodwill | (575) | |||||
Accounts payable | (1,352) | (1,352) | (1,354) | |||
Adjustments-Accounts payable | 2 | |||||
Accrued expenses | (876) | (876) | (809) | |||
Adjustments-Accrued expenses | (67) | |||||
Liabilities assumed | (5,391) | (5,391) | (5,391) | |||
Total purchase price | 18,983 | 18,983 | 19,603 | |||
Adjustments-Total purchase price | (620) | |||||
Weighted average amortization period | 9 years 4 months 24 days | |||||
Red Wolf | Noncompete agreements | ||||||
Assets acquired and liabilities assumed: | ||||||
Intangible assets, net | 170 | 170 | 170 | |||
Weighted average amortization period | 6 years | |||||
Red Wolf | Customer relationships | ||||||
Assets acquired and liabilities assumed: | ||||||
Intangible assets, net | 12,000 | 12,000 | 12,000 | |||
Weighted average amortization period | 9 years | |||||
Red Wolf | Trade names | ||||||
Assets acquired and liabilities assumed: | ||||||
Intangible assets, net | $ 1,100 | $ 1,100 | $ 1,100 | |||
Weighted average amortization period | 14 years | |||||
Red Wolf | Measurement Input, Discount Rate [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average cost of capital | 15.00% | |||||
Red Wolf | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of the contingent consideration | 0 | |||||
Red Wolf | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of the contingent consideration | 9,900 | |||||
Annual earn out payments | $ 4,950 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
RESTRUCTURING | ||
Restructuring Charges | $ 157 | $ 388 |
CNG and Abilene Heavy Fabrications | ||
RESTRUCTURING | ||
Annual cost savings | 575 | |
Restructuring Charges | 157 | 424 |
Remaining Costs | 721 | 721 |
CNG and Abilene Heavy Fabrications | Cost of sales | ||
RESTRUCTURING | ||
Restructuring Charges | 157 | 388 |
Remaining Costs | 685 | 685 |
CNG and Abilene Heavy Fabrications | Selling, general and administrative | ||
RESTRUCTURING | ||
Restructuring Charges | 36 | |
Remaining Costs | 36 | 36 |
CNG and Abilene Heavy Fabrications | Facility costs | Cost of sales | ||
RESTRUCTURING | ||
Restructuring Charges | 69 | 215 |
Remaining Costs | 277 | 277 |
CNG and Abilene Heavy Fabrications | Moving and remediation | Cost of sales | ||
RESTRUCTURING | ||
Restructuring Charges | 1 | |
Remaining Costs | 152 | 152 |
CNG and Abilene Heavy Fabrications | Salary and severance | Cost of sales | ||
RESTRUCTURING | ||
Restructuring Charges | 17 | |
Remaining Costs | 17 | 17 |
CNG and Abilene Heavy Fabrications | Salary and severance | Selling, general and administrative | ||
RESTRUCTURING | ||
Restructuring Charges | 36 | |
Remaining Costs | 36 | 36 |
CNG and Abilene Heavy Fabrications | Depreciation | Cost of sales | ||
RESTRUCTURING | ||
Restructuring Charges | 88 | 155 |
Remaining Costs | $ 239 | $ 239 |