Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Entity Registrant Name | DIRTT ENVIRONMENTAL SOLUTIONS LTD | |
Entity Central Index Key | 0001340476 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Address, State or Province | AB | |
Entity Interactive Data Current | Yes | |
Trading Symbol | DRTT | |
Title of 12(b) Security | Common Shares | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 84,681,364 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 56,642 | $ 53,412 |
Trade and other receivables, net of allowances for doubtful accounts of $0.1 million at both September 30, 2019 and December 31, 2018 | 27,532 | 43,873 |
Inventory | 18,996 | 18,650 |
Prepaids and other current assets | 4,257 | 2,217 |
Total Current Assets | 107,427 | 118,152 |
Property, plant and equipment, net | 38,166 | 36,728 |
Capitalized software, net | 8,292 | 8,335 |
Operating lease right-of-use assets, net | 21,530 | |
Deferred tax assets, net | 3,487 | 6,083 |
Goodwill | 1,393 | 1,353 |
Other assets | 5,472 | 5,260 |
Total Assets | 185,767 | 175,911 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 22,217 | 32,583 |
Other liabilities | 4,393 | 5,523 |
Customer deposits | 7,407 | 7,701 |
Current portion of lease liabilities | 5,247 | |
Current portion of long-term debt | 2,500 | |
Total Current Liabilities | 39,264 | 48,307 |
Deferred tax liabilities, net | 965 | |
Other long-term liabilities | 233 | |
Long-term lease liabilities | 17,021 | |
Long-term debt | 3,125 | |
Total Liabilities | 56,518 | 52,397 |
SHAREHOLDERS' EQUITY | ||
Common shares, unlimited authorized without par value, 84,681,364 issued and outstanding at September 30, 2019 and 84,660,319 issued and outstanding at December 31, 2018 | 180,639 | 180,562 |
Additional paid-in capital | 6,591 | 6,615 |
Accumulated other comprehensive loss | (19,558) | (22,092) |
Accumulated deficit | (38,423) | (41,571) |
Total Shareholders' Equity | 129,249 | 123,514 |
Total Liabilities and Shareholders' Equity | $ 185,767 | $ 175,911 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade and other receivables, allowances for doubtful accounts | $ 0.1 | $ 0.1 |
Common Stock,No Par Value | $ 0 | $ 0 |
Common,Stock Shares Issued | 84,681,364 | 84,660,319 |
Common Stock,Shares Outstanding | 84,681,364 | 84,660,319 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues [Abstract] | ||||
Total revenue | $ 65,385 | $ 73,913 | $ 194,537 | $ 200,241 |
Total cost of sales | 40,451 | 43,828 | 121,578 | 120,851 |
Gross profit | 24,934 | 30,085 | 72,959 | 79,390 |
Expenses | ||||
Sales and marketing | 8,568 | 9,995 | 25,898 | 30,169 |
General and administrative | 7,280 | 7,212 | 21,033 | 21,634 |
Operations support | 2,419 | 1,937 | 7,771 | 5,933 |
Technology and development | 1,718 | 922 | 5,881 | 3,048 |
Stock-based compensation | (2,389) | 2,037 | 2,403 | 3,172 |
Impairment | 6,098 | 6,098 | ||
Reorganization | 2,236 | 2,639 | 4,646 | |
Total operating expenses | 17,596 | 30,437 | 65,625 | 74,700 |
Operating income (loss) | 7,338 | (352) | 7,334 | 4,690 |
Foreign exchange (gain) loss | (198) | 400 | 762 | (805) |
Interest income | (228) | (101) | (320) | (327) |
Interest expense | 3 | 98 | 77 | 301 |
Non Operating (income) loss | (423) | 397 | 519 | (831) |
Income (loss) before tax | 7,761 | (749) | 6,815 | 5,521 |
Income taxes | ||||
Current tax expense | 818 | 1,145 | 1,906 | 2,733 |
Deferred tax expense (recovery) | 1,141 | (461) | 1,761 | 381 |
Total income taxes | 1,959 | 684 | 3,667 | 3,114 |
Net income (loss) | $ 5,802 | $ (1,433) | $ 3,148 | $ 2,407 |
Income (loss) per share | ||||
Basic and diluted income (loss) per share | $ 0.07 | $ (0.02) | $ 0.04 | $ 0.03 |
Weighted average number of shares outstanding | ||||
Basic | 84,681 | 84,650 | 84,668 | 84,416 |
Diluted | 85,257 | 84,650 | 84,888 | 84,980 |
Interim Condensed Consolidated Statement of Comprehensive Income (loss) | ||||
Net income (loss) for the period | $ 5,802 | $ (1,433) | $ 3,148 | $ 2,407 |
Exchange differences on translation | (838) | 1,783 | 2,534 | (3,801) |
Comprehensive income (loss) for the period | 4,964 | 350 | 5,682 | (1,394) |
Product [Member] | ||||
Revenues [Abstract] | ||||
Total revenue | 63,324 | 71,720 | 188,437 | 193,378 |
Total cost of sales | 38,947 | 42,202 | 116,117 | 115,941 |
Service [Member] | ||||
Revenues [Abstract] | ||||
Total revenue | 2,061 | 2,193 | 6,100 | 6,863 |
Total cost of sales | $ 1,504 | $ 1,626 | $ 5,461 | $ 4,910 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit |
Beginning Balance at Dec. 31, 2017 | $ 126,519 | $ 178,397 | $ 7,355 | $ (12,112) | $ (47,121) |
Beginning Balance (in shares) at Dec. 31, 2017 | 84,224,527 | ||||
Issued on exercise of stock options | 1,538 | $ 2,165 | (627) | ||
Issued on exercise of stock options (in shares) | 435,792 | ||||
Stock-based compensation | 1,568 | 1,568 | |||
Stock option conversion to cash settled | (2,718) | (2,718) | |||
Foreign currency translation adjustment | (3,801) | (3,801) | |||
Net income (loss) for the period | 2,407 | 2,407 | |||
Ending Balance at Sep. 30, 2018 | 125,513 | $ 180,562 | 5,578 | (15,913) | (44,714) |
Ending Balance (in shares) at Sep. 30, 2018 | 84,660,319 | ||||
Beginning Balance at Dec. 31, 2018 | 123,514 | $ 180,562 | 6,615 | (22,092) | (41,571) |
Beginning Balance (in shares) at Dec. 31, 2018 | 84,660,319 | ||||
Issued on exercise of stock options | 76 | $ 77 | (1) | ||
Issued on exercise of stock options (in shares) | 21,045 | ||||
Stock-based compensation modification adjustment | (23) | (23) | |||
Foreign currency translation adjustment | 2,534 | 2,534 | |||
Net income (loss) for the period | 3,148 | 3,148 | |||
Ending Balance at Sep. 30, 2019 | $ 129,249 | $ 180,639 | $ 6,591 | $ (19,558) | $ (38,423) |
Ending Balance (in shares) at Sep. 30, 2019 | 84,681,364 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||||
Net income (loss) for the period | $ 5,802 | $ (1,433) | $ 3,148 | $ 2,407 |
Adjustments: | ||||
Depreciation and amortization | 2,925 | 3,544 | 9,260 | 10,342 |
Impairment | 6,098 | 6,098 | ||
Stock-based compensation | (2,646) | 1,200 | (1,217) | 2,335 |
Non-cash interest expense (income) | (9) | (55) | ||
Deferred income tax expense (recovery) | 1,141 | (461) | 1,761 | 381 |
Foreign exchange loss (gain) | (198) | 400 | 762 | (805) |
Loss (gain) on disposal of property, plant and equipment | (1) | 53 | (15) | |
Changes in operating assets and liabilities: | ||||
Trade and other receivables | 661 | (9,516) | 15,970 | (24,255) |
Inventory | (436) | (2,947) | 4 | (1,443) |
Prepaid and other current assets | (2,043) | 425 | (2,001) | (731) |
Other assets | 76 | 80 | ||
Trade accounts payable and other liabilities | (2,151) | 3,808 | (8,560) | (815) |
Lease liability | (127) | (375) | ||
Customer deposits | (216) | (852) | (492) | (1,367) |
Net cash flows provided by (used in) operating activities | 2,998 | 208 | 17,881 | (7,514) |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (4,594) | (1,681) | (7,753) | (7,013) |
Capitalized software development expenditures | (918) | (1,264) | (2,513) | (4,248) |
Recovery of software development expenditures | 89 | 194 | ||
Proceeds on sale of property, plant and equipment | 55 | 66 | ||
Changes in accounts payable related to investing activities | 349 | (222) | (127) | (371) |
Net cash flows used in investing activities | (5,074) | (3,167) | (10,144) | (11,566) |
Cash flows from financing activities: | ||||
Cash received on exercise of stock options | 61 | 163 | 77 | 1,537 |
Repayment of long-term debt | (684) | (5,561) | (2,620) | |
Net cash flows provided by (used in) financing activities | 61 | (521) | (5,484) | (1,083) |
Effect of foreign exchange on cash and cash equivalents | (81) | 97 | 977 | (1,202) |
Net increase (decrease) in cash and cash equivalents | (2,094) | (3,383) | 3,230 | (21,365) |
Cash and cash equivalents, beginning of period | 58,736 | 45,502 | 53,412 | 63,484 |
Cash and cash equivalents, end of period | 56,642 | 42,119 | 56,642 | 42,119 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 3 | 98 | 77 | 301 |
Income taxes paid | $ 953 | $ 2,071 | $ 1,403 | $ 3,136 |
GENERAL INFORMATION
GENERAL INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION DIRTT Environmental Solutions Ltd. and its subsidiaries (“DIRTT” or the “Company”) is a leading technology-driven manufacturer of highly customized interiors. DIRTT combines its proprietary 3D design, configuration and manufacturing software (“ICE ® (“Distribution Partner”) . ICE provides accurate design, drawing, specification, pricing and manufacturing process information, allowing rapid production of high-quality custom solutions using fewer resources than traditional manufacturing methods. ICE is also licensed to unrelated companies and distribution partners of the Company. DIRTT is incorporated under the laws of the province of Alberta, Canada and its headquarters and registered office is located at 7303 – 30th Street S.E., Calgary, AB, Canada T2C 1N6. DIRTT trades on the Toronto Stock Exchange under the symbol “DRT ” and, effective October 9, 2019, trades on The Nasdaq Global Select Market under the symbol “DRTT”. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION The accompanying unaudited interim condensed consolidated financial statements (the “Financial Statements”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, the Financial Statements do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of the Company, the Financial Statements contain all adjustments necessary, consisting of only normal recurring adjustments, for a fair statement of its financial position as of September n ine September , In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency , Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated on consolidation. Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and stock-based compensation that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Company’s quarterly tax provision is based upon an estimated annual effective tax rate. Seasonality Sales of the Company’s products are driven by consumer and industrial demand for interior construction solutions. The timing of customer’s construction projects can be influenced by a number of factors including prevailing economic climate and weather. Seasonality of construction results in demand for the Company’s solutions to be typically stronger in the third and fourth quarters compared to the first and second quarter of its fiscal year. |
ADOPTION OF NEW AND REVISED ACC
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 3. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” and issued subsequent amendments to the initial guidance in January 2018 within ASU No. 2018-01, in July 2018 within ASU Nos. 2018-10 and 2018-11, in December 2018 within ASU No. 2018-20, and in March 2019 within ASU No. 2019-01 (collectively, the standard). The standard requires lessees to recognize operating leases on the balance sheet as a right-of-use (“ROU”) asset and a lease liability. The liability is equal to the present value of the lease payments over the remaining lease term. The asset is based on the liability, subject to certain adjustments. Operating leases result in straight-line expense. The Company adopted the standard on January 1, 2019, and elected the transition method of adoption, which allowed the Company to apply the standard as of the beginning of the period of adoption, the comparative period presented is not adjusted and continues to be reported in accordance with the Company’s historical accounting policy. The Company opted to elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and certain other practical expedients, including the use of hindsight to determine the lease term for existing leases and in assessing impairment of the right-of-use asset, and the exception for short-term leases. Adoption of the standard had a significant impact on the Company’s condensed consolidated balance sheet due to the recognition of a right-of-use asset and lease liability, as shown in Note 4, upon adoption. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | 4. LEASES The Company leases office and factory space under various operating leases. The Company determines if an arrangement is a lease or contains a lease element at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases are separately disclosed as operating lease ROU assets, with a corresponding lease liability split between current and long-term components on the balance sheet. Operating leases with an initial term of 12 months or less are not included on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to instruments with similar characteristics when calculating its incremental borrowing rate. The Company’s operating leases have remaining lease terms of 1 year to 12 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For the three months and nine September cash paid for amounts included in the measurement of operating lease liabilities was $1.4 million and $4.2 million. The weighted average remaining lease term and weighted average discount rate at September nine September September 30, 2019 related to operating leases (in thousands): The following table includes ROU assets included on the balance sheet at September 30, 2019: ROU Assets Cost Accumulated Depreciation Net book value At January 1, 2019 22,571 — 22,571 Additions 1,701 — 1,701 Depreciation expense — (3,020 ) (3,020 ) Exchange differences 288 (10 ) 278 At September 30, 2019 24,560 (3,030 ) 21,530 The following table includes lease liabilities included on the balance sheet at September Opening balance (Note 3) 23,912 Addition s 1,673 Accretion 829 Repayment of lease liabilities (4,237 ) Lease cancellation (196 ) Exchange differences 287 22,268 Current lease liabilities 5,247 Long-term lease liabilities 17,021 The following table includes maturities of operating lease liabilities at September As at September 3 0 2019 1,326 2020 5,355 2021 5,357 2022 4,817 2023 2,987 Thereafter 5,893 Total 25,735 Current lease liability 5,247 Long term lease liability 17,021 Total lease liability 22,268 Difference between undiscounted cash flows and lease liability 3,467 Subsequent to September 30, 2019, the Company entered into a lease agreement, expected to commence in the second half of 2020, associated with the construction of a new combined tile and millwork facility in Rock Hill, South Carolina. Rent obligations associated with this lease are approximately $15.0 million. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 5. LONG-TERM DEBT The Company had an $18.0 million revolving operating facility which expired on June 30, 2019. During the first quarter of 2019, the Company repaid the outstanding principal and interest amounts of its long-term debt, totaling $5.6 million. On July 19, 2019, the Company entered into a C$50.0 million senior secured revolving credit facility with the Royal Bank of Canada (the “ RBC RBC As at September 30, 2019, the RBC Facility was undrawn and the Company was in compliance with all of the covenants of the RBC Facility. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION Stock-based compensation expense (recovery) For For September 30, 2019 2018 2019 2018 Stock options (2,573 ) 2,032 1,890 3,167 Performance Share Units 110 5 189 5 Deferred Share Units 74 — 324 — (2,389 ) 2,037 2,403 3,172 Stock Options For the three months ended September nin e September nine September 0.9 million 0.9 million September , On October 9, 2019, following its listing on The Nasdaq Global Select Market, the Company ceased cash-settlement of stock options and the associated liability accounting for stock options. The following summarizes options granted, exercised, surrendered, forfeited and expired during the periods: Number of Weighted ( ) Outstanding at December 31, 2017 5,553,393 5.31 Granted 3,327,525 6.40 Exercised (435,792 ) 4.78 Forfeited (643,849 ) 5.81 Expired (15,420 ) 6.01 Outstanding at September 7,785,857 5.84 Outstanding at December 31, 2018 6,858,376 5.88 Granted 1,359,824 7.51 Exercised (21,045 ) 4.81 Forfeited (243,761 ) 6.22 Surrendered for cash settlement (1,544,151 ) 4.95 Expired (119,336 ) 5.63 Outstanding at September 6,289,907 6.51 Exercisable at September 1,940,498 5.98 Range of exercise prices outstanding at September Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted ( ) Number Weighted Weighted ( ) $5.01 – $6.00 806,638 2.1 5.76 479,389 2.1 5.76 $6.01 – $7.00 4,396,537 3.3 6.32 1,461,109 1.9 6.20 $7.01 – $7.84 1,086,732 4.6 4.84 — Total 6,289,907 1,940,498 Performance share units (“PSUs”) As at Se pte mber 85,728 0.2 0.1 long-term Deferred share units (“DSUs”) There were 92,889 September 25,962 current portion of Dilutive instruments For the three and nine s September |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 7. REVENUE In the following table, revenue is disaggregated by major products and services lines and timing of revenue recognition. All revenue comes from contracts with customers. See Note 9 for the disaggregation of revenue by geographic region. For the three months ended For the nine months ended September 30, 2019 2018 2019 2018 Product 56,486 64,941 168,321 175,286 Transportation 6,429 6,184 18,644 16,368 Licenses 409 595 1,472 1,724 Total product revenue 63,324 71,720 188,437 193,378 Installation and other services 2,061 2,193 6,100 6,863 65,385 73,913 194,537 200,241 DIRTT sells its products and services pursuant to fixed-price contracts , For the three months ended For the nine months ended September 30, 2019 2018 2019 2018 At a point in time 62,915 71,125 186,965 191,654 Over time 2,470 2,788 7,572 8,587 65,385 73,913 194,537 200,241 Revenue recognized at a point in time represents the majority of the Company’s sales and revenue is recognized when a customer obtains legal title to the product, which is when ownership of products is transferred to, or services are delivered to the contract counterparty. Revenue recognized over time is limited to installation and other services provided to customers and is recorded as performance obligations which Contract Liabilities September 30, As at December 31, December 31, Customer deposits 6,296 6,746 5,675 Deferred revenue 1,111 955 701 Contract liabilities 7,407 7,701 6,376 Contract liabilities primarily relate to deposits received from customers and deferred revenue from license subscriptions. The balance of contract liabilities was consistent as at September s September Sales by Industry The Company periodically reviews the growth o f - For the three months ended For the nine months ended 2019 2018 2019 2018 Commercial 42,910 41,117 124,248 119,021 Healthcare 9,192 18,698 32,452 40,459 Government 3,855 4,634 12,267 17,408 Education 6,958 6,676 17,998 14,766 Licenses fees from Distribution Partners 409 595 1,472 1,724 Total product revenue 63,324 71,720 188,437 193,378 Installation and other services 2,061 2,193 6,100 6,863 65,385 73,913 194,537 200,241 |
INCOME TAX
INCOME TAX | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 8. INCOME TAX The general provincial tax rate in Alberta, Canada was decreased on June 28, 2019 , % % % % |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 9. SEGMENT REPORTING The Company has one reportable and one Revenue from external customers For the three months ended For the nine months ended 2019 2018 2019 2018 Canada 8,956 11,627 24,795 29,998 U.S. 56,429 62,249 169,742 169,343 International — 37 — 900 65,385 73,913 194,537 200,241 Non-current assets ( 1) , excluding deferred tax assets As at September 30, December 31, Canada 47,536 36,323 U.S. 27,317 15,353 74,853 51,676 (1) Amounts include property, plant and equipment, capitalized software, operating lease ROU assets, goodwill and other assets. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | 10. TRANSACTIONS WITH RELATED PARTIES A DIRTT Distribution Partner, Lane Office Furniture Inc. (“Lane”), is owned by a former director of the Company, Gregory Burke. Effective June 26, 2018, Mr. Burke ceased to be a director of the Company. For the three and nine September n n During the three and nine September $ 0.2 million and $0.3 million . |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 11. COMMITMENTS As at Septem ber |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | 12. LEGAL PROCEEDINGS On May 9, 2019, the Company commenced an action in the Court of Queen’s Bench of Alberta against two former executives, their company, Falkbuilt Ltd. (“Falkbuilt”), and other individuals, on the basis of, among other things, a breach of non-compete and non-solicit obligations. On November 5, 2019, Falkbuilt filed a Statement of Claim (the “Claim”) against the Company in the Court of Queen’s Bench of Alberta alleging that the Company has misappropriated and misused their alleged proprietary information in furtherance of the Company’s product development. The claim seeks monetary relief, including, among other things, damages of approximately C$30.0 million, disgorgement of profits, punitive damages, and attorneys’ fees, and an interim, interlocutory and permanent injunction of the Company’s use of the alleged proprietary information. The Company believes the Claim is without merit. The Company intends to defend it vigorously and to continue to pursue its legal remedies against the former employees. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated on consolidation. |
Basis of measurement | Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and stock-based compensation that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Company’s quarterly tax provision is based upon an estimated annual effective tax rate. |
Seasonality | Seasonality Sales of the Company’s products are driven by consumer and industrial demand for interior construction solutions. The timing of customer’s construction projects can be influenced by a number of factors including prevailing economic climate and weather. Seasonality of construction results in demand for the Company’s solutions to be typically stronger in the third and fourth quarters compared to the first and second quarter of its fiscal year. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of ROU assets | The following table includes ROU assets included on the balance sheet at September 30, 2019: ROU Assets Cost Accumulated Depreciation Net book value At January 1, 2019 22,571 — 22,571 Additions 1,701 — 1,701 Depreciation expense — (3,020 ) (3,020 ) Exchange differences 288 (10 ) 278 At September 30, 2019 24,560 (3,030 ) 21,530 |
Schedule of lease liabilities | The following table includes lease liabilities included on the balance sheet at September Opening balance (Note 3) 23,912 Addition s 1,673 Accretion 829 Repayment of lease liabilities (4,237 ) Lease cancellation (196 ) Exchange differences 287 22,268 Current lease liabilities 5,247 Long-term lease liabilities 17,021 |
Schedule of maturities of operating lease liabilities | The following table includes maturities of operating lease liabilities at September As at September 3 0 2019 1,326 2020 5,355 2021 5,357 2022 4,817 2023 2,987 Thereafter 5,893 Total 25,735 Current lease liability 5,247 Long term lease liability 17,021 Total lease liability 22,268 Difference between undiscounted cash flows and lease liability 3,467 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock-based compensation expense | Stock-based compensation expense (recovery) For For September 30, 2019 2018 2019 2018 Stock options (2,573 ) 2,032 1,890 3,167 Performance Share Units 110 5 189 5 Deferred Share Units 74 — 324 — (2,389 ) 2,037 2,403 3,172 |
Summary of options granted, exercised, surrendered, forfeited and expired | The following summarizes options granted, exercised, surrendered, forfeited and expired during the periods: Number of Weighted ( ) Outstanding at December 31, 2017 5,553,393 5.31 Granted 3,327,525 6.40 Exercised (435,792 ) 4.78 Forfeited (643,849 ) 5.81 Expired (15,420 ) 6.01 Outstanding at September 7,785,857 5.84 Outstanding at December 31, 2018 6,858,376 5.88 Granted 1,359,824 7.51 Exercised (21,045 ) 4.81 Forfeited (243,761 ) 6.22 Surrendered for cash settlement (1,544,151 ) 4.95 Expired (119,336 ) 5.63 Outstanding at September 6,289,907 6.51 Exercisable at September 1,940,498 5.98 |
Summary of options outstanding by range of exercise prices | Range of exercise prices outstanding at September Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted ( ) Number Weighted Weighted ( ) $5.01 – $6.00 806,638 2.1 5.76 479,389 2.1 5.76 $6.01 – $7.00 4,396,537 3.3 6.32 1,461,109 1.9 6.20 $7.01 – $7.84 1,086,732 4.6 4.84 — Total 6,289,907 1,940,498 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by major products and services lines and timing of revenue recognition | In the following table, revenue is disaggregated by major products and services lines and timing of revenue recognition. All revenue comes from contracts with customers. See Note 9 for the disaggregation of revenue by geographic region. For the three months ended For the nine months ended September 30, 2019 2018 2019 2018 Product 56,486 64,941 168,321 175,286 Transportation 6,429 6,184 18,644 16,368 Licenses 409 595 1,472 1,724 Total product revenue 63,324 71,720 188,437 193,378 Installation and other services 2,061 2,193 6,100 6,863 65,385 73,913 194,537 200,241 For the three months ended For the nine months ended September 30, 2019 2018 2019 2018 At a point in time 62,915 71,125 186,965 191,654 Over time 2,470 2,788 7,572 8,587 65,385 73,913 194,537 200,241 |
Summary of contract liabilities | Contract Liabilities September 30, As at December 31, December 31, Customer deposits 6,296 6,746 5,675 Deferred revenue 1,111 955 701 Contract liabilities 7,407 7,701 6,376 |
Schedule of sales by industry | For the three months ended For the nine months ended 2019 2018 2019 2018 Commercial 42,910 41,117 124,248 119,021 Healthcare 9,192 18,698 32,452 40,459 Government 3,855 4,634 12,267 17,408 Education 6,958 6,676 17,998 14,766 Licenses fees from Distribution Partners 409 595 1,472 1,724 Total product revenue 63,324 71,720 188,437 193,378 Installation and other services 2,061 2,193 6,100 6,863 65,385 73,913 194,537 200,241 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenue from external customers | Revenue from external customers For the three months ended For the nine months ended 2019 2018 2019 2018 Canada 8,956 11,627 24,795 29,998 U.S. 56,429 62,249 169,742 169,343 International — 37 — 900 65,385 73,913 194,537 200,241 |
Schedule of non-current assets, excluding deferred tax assets | Non-current assets ( 1) , excluding deferred tax assets As at September 30, December 31, Canada 47,536 36,323 U.S. 27,317 15,353 74,853 51,676 (1) Amounts include property, plant and equipment, capitalized software, operating lease ROU assets, goodwill and other assets. |
LEASES - Schedule of ROU assets
LEASES - Schedule of ROU assets (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Operating Lease Right Of Use Assets Net Book Value [Abstract] | |
Net Book Value, At September 30, 2019 | $ 21,530 |
Operating Lease [Member] | |
Operating Lease Right Of Use Assets Original Cost [Abstract] | |
Cost, At January 1, 2019 | 22,571 |
Cost, Additions | 1,701 |
Cost, Exchange differences | 288 |
Cost, At September 30, 2019 | 24,560 |
Operating Lease Right Of Use Assets Accumulated Depreciation [Abstract] | |
Accumulated Depreciation, Depreciation expense | (3,020) |
Accumulated Depreciation, Exchange differences | (10) |
Accumulated Depreciation, At September 30, 2019 | (3,030) |
Operating Lease Right Of Use Assets Net Book Value [Abstract] | |
Net Book Value, At January 1, 2019 | 22,571 |
Net Book Value, Additions | 1,701 |
Net Book Value, Depreciation expense | (3,020) |
Net Book Value, Exchange differences | 278 |
Net Book Value, At September 30, 2019 | $ 21,530 |
LEASES - Schedule of Lease Liab
LEASES - Schedule of Lease Liabilities (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Opening balance | $ 23,912 | |
Additions | 1,673 | |
Accretion | 829 | |
Repayment of lease liabilities | $ (1,400) | (4,237) |
Lease cancellation | (196) | |
Exchange differences | 287 | |
Ending Balance | 22,268 | 22,268 |
Current lease liabilities | 5,247 | 5,247 |
Long-term lease liabilities | $ 17,021 | $ 17,021 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 1,326 | |
2020 | 5,355 | |
2021 | 5,357 | |
2022 | 4,817 | |
2023 | 2,987 | |
Thereafter | 5,893 | |
Total | 25,735 | |
Current lease liability | 5,247 | |
Long term lease liability | 17,021 | |
Total lease liability | 22,268 | $ 23,912 |
Difference between undiscounted cash flows and lease liability | $ 3,467 |
LEASES - (Additional Informatio
LEASES - (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Oct. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 12 years | 12 years | ||
Weighted average discount rate | 4.60% | 4.60% | ||
Cash paid for operating lease | $ 1,400 | $ 4,237 | ||
Operating lease rent obligations | $ 22,268 | $ 22,268 | $ 23,912 | |
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating leases remaining lease terms | 12 years | 12 years | ||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating leases remaining lease terms | 1 year | 1 year | ||
Subsequent Event [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease rent obligations | $ 15,000 |
LONG-TERM DEBT - (Additional In
LONG-TERM DEBT - (Additional Information) (Detail) | Jul. 19, 2019CAD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Repayments of outstanding principal and interest amounts of long-term debt | $ 684,000 | $ 5,561,000 | $ 2,620,000 | |||
Revolving Operating Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 18,000,000 | |||||
Repayments of outstanding principal and interest amounts of long-term debt | $ 5,600,000 | |||||
Senior Secured Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 50,000,000 | |||||
Revolving credit facility, term | 3 years | |||||
Revolving credit facility, additional term | 2 years | |||||
Revolving credit facility, interest rate terms | Interest is calculated at theCanadian or U.S. prime rate with no adjustment,or the bankers' acceptance rate plus 125 basis points. | |||||
Revolving credit facility, basis spread on variable rate | 1.25% | |||||
Debt instrument covenant terms | The RBC Facility is subject to a minimum fixed charge coverage ratio of 1.15:1 and a maximum debt to Adjusted EBITDA ratio of 3.0:1 |
STOCK-BASED COMPENSATION - (Add
STOCK-BASED COMPENSATION - (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense (recovery) | $ (2,389) | $ 2,037 | $ 2,403 | $ 3,172 | |
Securities excluded from calculation of net income (loss) per share | 4,300,000 | 5,100,000 | 3,400,000 | 5,500,000 | |
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense (recovery) | $ (2,573) | $ 2,032 | $ 1,890 | $ 3,167 | |
Payments on surrender of cash settled stock options | 300 | 900 | 3,600 | 900 | |
Share-based arrangements, liability | 100 | 100 | $ 1,800 | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense (recovery) | $ 110 | $ 5 | $ 189 | $ 5 | |
Share based compensation, share units outstanding | 295,216 | 295,216 | 85,728 | ||
Share-based arrangements, liability | $ 200 | $ 200 | $ 100 | ||
Deferred Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense (recovery) | $ 74 | $ 324 | |||
Share based compensation, share units outstanding | 92,889 | 92,889 | 25,962 | ||
Share-based arrangements, liability | $ 400 | $ 400 | $ 100 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ (2,389) | $ 2,037 | $ 2,403 | $ 3,172 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | (2,573) | 2,032 | 1,890 | 3,167 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 110 | $ 5 | 189 | $ 5 |
Deferred Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 74 | $ 324 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options, Outstanding at the beginning | 6,858,376 | 5,553,393 |
Number of options, Granted | 1,359,824 | 3,327,525 |
Number of options, Exercised | (21,045) | (435,792) |
Number of options, Forfeited | (243,761) | (643,849) |
Number of options, Surrendered for cash settlement | (1,544,151) | |
Number of options, Expired | (119,336) | (15,420) |
Number of options, Outstanding at the end | 6,289,907 | 7,785,857 |
Number of options, Exercisable | 1,940,498 | |
Weighted average exercise price, Outstanding at the beginning | $ 5.88 | $ 5.31 |
Weighted average exercise price, Granted | 7.51 | 6.40 |
Weighted average exercise price, Exercised | 4.81 | 4.78 |
Weighted average exercise price, Forfeited | 6.22 | 5.81 |
Weighted average exercise price, Surrendered for cash settlement | 4.95 | |
Weighted average exercise price, Expired | 5.63 | 6.01 |
Weighted average exercise price, Outstanding at the end | 6.51 | $ 5.84 |
Weighted average exercise price, Exercisable | $ 5.98 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, Number | shares | 6,289,907 |
Options exercisable, Number | shares | 1,940,498 |
Exercise Price Range $5.01 to $6.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | $ 5.01 |
Range of exercise prices, Maximum | $ 6 |
Options outstanding, Number | shares | 806,638 |
Options outstanding, Weighted average remaining contractual years | 2 years 1 month 6 days |
Options outstanding, Weighted average exercise price | $ 5.76 |
Options exercisable, Number | shares | 479,389 |
Options exercisable, Weighted average remaining contractual years | 2 years 1 month 6 days |
Options exercisable, Weighted average exercise price | $ 5.76 |
Exercise Price Range $6.01 to $7.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 6.01 |
Range of exercise prices, Maximum | $ 7 |
Options outstanding, Number | shares | 4,396,537 |
Options outstanding, Weighted average remaining contractual years | 3 years 3 months 18 days |
Options outstanding, Weighted average exercise price | $ 6.32 |
Options exercisable, Number | shares | 1,461,109 |
Options exercisable, Weighted average remaining contractual years | 1 year 10 months 24 days |
Options exercisable, Weighted average exercise price | $ 6.20 |
Exercise Price Range $7.01 to $7.84 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 7.01 |
Range of exercise prices, Maximum | $ 7.84 |
Options outstanding, Number | shares | 1,086,732 |
Options outstanding, Weighted average remaining contractual years | 4 years 7 months 6 days |
Options outstanding, Weighted average exercise price | $ 4.84 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Major Products and Services Lines (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 65,385 | $ 73,913 | $ 194,537 | $ 200,241 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56,486 | 64,941 | 168,321 | 175,286 |
Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,429 | 6,184 | 18,644 | 16,368 |
Licenses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 409 | 595 | 1,472 | 1,724 |
Total product revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,324 | 71,720 | 188,437 | 193,378 |
Installation and other services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,061 | $ 2,193 | $ 6,100 | $ 6,863 |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 65,385 | $ 73,913 | $ 194,537 | $ 200,241 |
At a point in time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,915 | 71,125 | 186,965 | 191,654 |
Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,470 | $ 2,788 | $ 7,572 | $ 8,587 |
REVENUE - Summary of Contract L
REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Customer deposits | $ 6,296 | $ 6,746 | $ 5,675 |
Deferred revenue | 1,111 | 955 | 701 |
Contract liabilities | $ 7,407 | $ 7,701 | $ 6,376 |
REVENUE - Schedule of Sales by
REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 65,385 | $ 73,913 | $ 194,537 | $ 200,241 |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,910 | 41,117 | 124,248 | 119,021 |
Healthcare [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,192 | 18,698 | 32,452 | 40,459 |
Government [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,855 | 4,634 | 12,267 | 17,408 |
Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,958 | 6,676 | 17,998 | 14,766 |
Licenses fees from Distribution Partners [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 409 | 595 | 1,472 | 1,724 |
Total product revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,324 | 71,720 | 188,437 | 193,378 |
Installation and other services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,061 | $ 2,193 | $ 6,100 | $ 6,863 |
REVENUE - (Additional Informati
REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities recognized as revenue | $ 7.5 | $ 5.9 |
INCOME TAX - (Additional Inform
INCOME TAX - (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Income Tax [Line Items] | |||||
Reduction in deferred tax asset | $ 0.9 | ||||
Canada [Member] | Forecast [Member] | |||||
Schedule of Income Tax [Line Items] | |||||
Provincial tax rate | 11.00% | 8.00% | 9.00% | 10.00% |
SEGMENT REPORTING - (Additional
SEGMENT REPORTING - (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2019SegmentCountry | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Number of principal geographic locations | Country | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Revenue from External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | $ 65,385 | $ 73,913 | $ 194,537 | $ 200,241 |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | 8,956 | 11,627 | 24,795 | 29,998 |
U.S. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | $ 56,429 | 62,249 | $ 169,742 | 169,343 |
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | $ 37 | $ 900 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | $ 74,853 | $ 51,676 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | 47,536 | 36,323 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | $ 27,317 | $ 15,353 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES - (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Lane Office Furniture Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from related party transactions | $ 0 | $ 3 |
Rebate on sales from related parties | 0 | 0.1 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Advisory and consulting services | $ 0.2 | $ 0.3 |
COMMITMENTS - (Additional Infor
COMMITMENTS - (Additional Information) (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Inventory And Property Plant And Equipment [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase obligation, outstanding | $ 7.7 |
LEGAL PROCEEDINGS - (Additional
LEGAL PROCEEDINGS - (Additional Information) (Detail) $ in Millions | Nov. 05, 2019CAD ($) |
Falkbuilt [Member] | Subsequent Event [Member] | |
Loss contingency damages sought value | $ 30 |