Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | North American Energy Partners Inc. |
Entity Central Index Key | 1,368,519 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 28,070,150 |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash | CAD 8,186 | CAD 13,666 |
Accounts receivable, net (note 5 and 15(d)) | 47,228 | 40,080 |
Unbilled revenue (note 6 and 15(d)) | 21,572 | 15,965 |
Inventories | 4,754 | 3,437 |
Prepaid expenses and deposits (note 7) | 1,898 | 1,551 |
Assets held for sale (note 8 and 15(a)) | 5,642 | 247 |
Total current assets | 89,280 | 74,946 |
Property, plant and equipment, net of accumulated depreciation $220,320 (2016 - $204,860) (note 9) | 278,648 | 256,452 |
Other assets (note 10(a)) | 5,177 | 4,876 |
Deferred tax assets (note 11) | 10,539 | 13,807 |
Total Assets | 383,644 | 350,081 |
Current liabilities | ||
Accounts payable | 35,191 | 29,551 |
Accrued liabilities (note 12) | 13,879 | 11,175 |
Billings in excess of costs incurred and estimated earnings on uncompleted contracts (note 6) | 824 | 1,071 |
Current portion of capital lease obligations (note 14) | 29,136 | 24,062 |
Current portion of long term debt (note 13(a)) | 0 | 8,169 |
Total current liabilities | 79,030 | 74,028 |
Long term debt (note 13(a)) | 70,065 | 31,266 |
Capital lease obligations (note 14) | 37,833 | 37,338 |
Other long term obligations (note 16(a)) | 12,635 | 8,274 |
Deferred tax liabilities (note 11) | 38,157 | 40,221 |
Total Liabilities | 237,720 | 191,127 |
Shareholders' equity | ||
Common shares (authorized – unlimited number of voting common shares; issued and outstanding – December 31, 2017 - 28,070,150 (December 31, 2016 - 30,518,907) (note 17(a)) | 231,020 | 252,633 |
Treasury shares (December 31, 2017 - 2,617,926 (December 31, 2016 - 2,213,247)) (note 17(a)) | (12,350) | (9,294) |
Additional paid-in capital | 54,416 | 45,915 |
Deficit | (127,162) | (130,300) |
Total shareholders' equity | 145,924 | 158,954 |
Total liabilities and shareholders' equity | 383,644 | 350,081 |
Commitments (note 18) | ||
Contingencies (note 19) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | CAD 220,320 | CAD 204,860 |
Common shares, authorized | unlimited | unlimited |
Common shares, issued (in shares) | 28,070,150 | 30,518,907 |
Common shares, outstanding (in shares) | 28,070,150 | 30,518,907 |
Treasury shares (in shares) | 2,617,926 | 2,213,247 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | CAD 292,557 | CAD 213,180 |
Project costs | 116,346 | 80,023 |
Equipment costs | 91,829 | 60,020 |
Depreciation | 44,735 | 40,794 |
Gross profit | 39,647 | 32,343 |
General and administrative expenses | 25,299 | 27,222 |
Loss (gain) on disposal of property, plant and equipment | 189 | (116) |
Gain on disposal of assets held for sale (note 8) | (166) | (374) |
Amortization of intangible assets (note 10(b)) | 918 | 1,688 |
Operating income before the undernoted | 13,407 | 3,923 |
Interest expense (note 20) | 6,943 | 5,784 |
Other income | 0 | (1,375) |
Foreign exchange (gain) loss | (4) | 8 |
Income (loss) before income taxes | 6,468 | (494) |
Income tax expense (benefit) (note 11): | ||
Deferred | 1,204 | (49) |
Net income (loss) | 5,264 | (445) |
Comprehensive income (loss) | CAD 5,264 | CAD (445) |
Per share information | ||
Net income (loss) - basic (in CAD per share) | CAD 0.20 | CAD (0.01) |
Net income (loss) - diluted (in CAD per share) | CAD 0.18 | CAD (0.01) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD CAD in Thousands | Total | Common shares | Treasury shares | Additional paid-in capital | Deficit |
Beginning balance at Dec. 31, 2015 | CAD 171,618 | CAD 275,520 | CAD (5,960) | CAD 29,527 | CAD (127,469) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (445) | (445) | |||
Exercised options (note 21(b)) | 284 | 471 | (187) | ||
Stock-based compensation (note 21) | 2,791 | 370 | 2,421 | ||
Dividends (note 17(d)) ($0.08 per share) | (2,386) | (2,386) | |||
Share purchase programs (note 17(c)) | (9,204) | (23,358) | 14,154 | ||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 17(a)) | (3,704) | (3,704) | |||
Ending balance at Dec. 31, 2016 | 158,954 | 252,633 | (9,294) | 45,915 | (130,300) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 5,264 | 5,264 | |||
Exercised options (note 21(b)) | 575 | 960 | (385) | ||
Stock-based compensation (note 21) | 2,925 | 1,642 | 1,283 | ||
Dividends (note 17(d)) ($0.08 per share) | (2,126) | (2,126) | |||
Share purchase programs (note 17(c)) | (14,970) | (22,573) | 7,603 | ||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 17(a)) | (4,698) | (4,698) | |||
Ending balance at Dec. 31, 2017 | CAD 145,924 | CAD 231,020 | CAD (12,350) | CAD 54,416 | CAD (127,162) |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - CAD / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in CAD per share) | CAD 0.08 | CAD 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income (loss) available to common shareholders | CAD 5,264 | CAD (445) |
Adjustments to reconcile to net cash from operating activities: | ||
Depreciation | 44,735 | 40,794 |
Amortization of intangible assets (note 10(b)) | 918 | 1,688 |
Amortization of deferred financing costs (note 10(c), note 13(a) and note 20) | 797 | 572 |
Loss (gain) on disposal of property, plant and equipment | 189 | (116) |
Gain on disposal of assets held for sale (note 8) | (166) | (374) |
Stock-based compensation expense (note 21(a)) | 3,995 | 6,030 |
Cash settlement of stock-based compensation (note 21(c(i)) and 21(e)) | (343) | (1,211) |
Other adjustments (note 10(d), note 16(b) and note 16(c)) | 181 | 97 |
Non-monetary other income | 0 | (1,375) |
Deferred income tax expense (benefit) (note 11) | 1,204 | (49) |
Net changes in non-cash working capital (note 22(b)) | (7,029) | (5,780) |
Total operating activities | 49,745 | 39,831 |
Investing activities: | ||
Purchase of property, plant and equipment | (53,813) | (27,075) |
Additions to intangible assets (note 10(b)) | (66) | (304) |
Proceeds on disposal of property, plant and equipment | 20,790 | 15,182 |
Proceeds on disposal of assets held for sale | 1,640 | 1,681 |
Issuance of loan to partnership (note 10(a) and note 24) | (969) | 0 |
Investment in partnership (note 24) | (1,177) | 0 |
Total investing activities | (33,595) | (10,516) |
Financing activities: | ||
Repayment of credit facilities | (19,941) | (5,962) |
Increase in credit facilities | 11,732 | 16,962 |
Issuance of Convertible Debentures (note 13(d)) | 40,000 | 0 |
Financing costs (note 10(c) and note 13(e)) | (2,982) | (99) |
Redemption of Series 1 Debentures (note 13(c)) | 0 | (19,927) |
Repayment of capital lease obligations | (29,161) | (24,533) |
Proceeds from options exercised (note 21(b)) | 575 | 284 |
Dividend payments (note 17(d)) | (2,185) | (1,817) |
Share purchase programs (note 17(c)) | (14,970) | (9,204) |
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 17(a)) | (4,698) | (3,704) |
Total financing activities | (21,630) | (48,000) |
Decrease in cash | (5,480) | (18,685) |
Cash, beginning of year | 13,666 | 32,351 |
Cash, end of year | CAD 8,186 | CAD 13,666 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations North American Energy Partners Inc. (the “Company”), formerly NACG Holdings Inc., was incorporated under the Canada Business Corporations Act on October 17, 2003. On November 26, 2003, the Company purchased all the issued and outstanding shares of North American Construction Group Inc. (“NACGI”), including subsidiaries of NACGI, from Norama Ltd. which had been operating continuously in Western Canada since 1953. The Company had no operations prior to November 26, 2003. The Company provides a wide range of mining and heavy construction services to customers in the resource development and industrial construction sectors, primarily within Western Canada. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies a) Basis of presentation These consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("US GAAP"). Material inter-company transactions and balances are eliminated upon consolidation. These consolidated financial statements include the accounts of the Company, its wholly-owned, Canadian incorporated subsidiaries, NACGI, North American Fleet Company Ltd., North American Construction Holdings Inc. (“NACHI”) and NACG Properties Inc., and the following 100% owned, Canadian incorporated subsidiaries of NACHI as of December 31, 2017: • North American Engineering Inc. • North American Site Development Ltd. • North American Enterprises Ltd. • North American Maintenance Ltd. • North American Mining Inc. • North American Tailings and Environmental Ltd. • North American Services Inc. • 1753514 Alberta Ltd. North American Enterprises Ltd. holds a 49% ownership interest in the assets, liabilities, revenue and expenses of a partnership agreement under the name Dene North Site Services. The Company records its share of the partnership assets, liabilities, revenues and expenses within its consolidated financial statements using the proportionate consolidation method (note 24) . b) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures reported in these consolidated financial statements and accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates made by management include the assessment of the percentage of completion on time-and-materials, unit-price, lump-sum and cost-plus contracts with defined scope (including estimated total costs and provisions for estimated losses) and the recognition of claims and change orders on revenue contracts; assumptions used in impairment testing; and, estimates and assumptions used in the determination of the allowance for doubtful accounts, the recoverability of deferred tax assets and the useful lives of property, plant and equipment and intangible assets. The accuracy of the Company’s revenue and profit recognition in a given period is dependent on the accuracy of its estimates of the cost to complete for each project. Cost estimates for all significant projects use a detailed “bottom up” approach and the Company believes its experience allows it to provide reasonably dependable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability that are recognized in the period in which such adjustments are determined. The most significant of these include: • the completeness and accuracy of the original bid; • costs associated with added scope changes; • extended overhead due to owner, weather and other delays; • subcontractor performance issues; • changes in economic indices used for the determination of escalation or de-escalation for contractual rates on long-term contracts; • changes in productivity expectations; • site conditions that differ from those assumed in the original bid; • contract incentive and penalty provisions; • the availability and skill level of workers in the geographic location of the project; and • a change in the availability and proximity of equipment and materials. The foregoing factors as well as the mix of contracts at different margins may cause fluctuations in gross profit between periods. With many projects of varying levels of complexity and size in process at any given time, changes in estimates can offset each other without materially impacting the Company’s profitability. Major changes in cost estimates, particularly in larger, more complex projects, can have a significant effect on profitability. c) Revenue recognition The Company performs its projects under the following types of contracts: time-and-materials; cost-plus; unit-price; and lump-sum. Revenue is recognized as costs are incurred for time-and-materials, unit-price and cost-plus service contracts with no clearly defined scope. Revenue on cost-plus, unit-price, lump-sum and time-and-materials contracts with defined scope is recognized using the percentage-of-completion method, measured by the ratio of costs incurred to date to estimated total costs. The estimated total cost of the contract and percent complete is determined based upon estimates made by management. The costs of items that do not relate to performance of contracted work, particularly in the early stages of the contract, are excluded from costs incurred to date. The resulting percent complete methodology is applied to the approved contract value to determine the revenue recognized. Customer payment milestones typically occur on a periodic basis over the period of contract completion. The length of the Company’s contracts varies from less than one year for typical contracts to several years for certain larger contracts. Contract project costs include all direct labour, material, subcontract and equipment costs and those indirect costs related to contract performance such as indirect labour and supplies. General and administrative expenses are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in project performance, project conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and revenue that are recognized in the period in which such adjustments are determined. Profit incentives are included in revenue when their realization is reasonably assured. Once a project is underway, the Company will often experience changes in conditions, client requirements, specifications, designs, materials and work schedule. Generally, a “change order” will be negotiated with the customer to modify the original contract to approve both the scope and price of the change. Occasionally, however, disagreements arise regarding changes, their nature, measurement, timing and other characteristics that impact costs and revenue under the contract. When a change becomes a point of dispute between the Company and a customer, the Company will then consider it as a claim. Costs related to unapproved change orders and claims are recognized when they are incurred. Revenues related to unapproved change orders and claims are included in total estimated contract revenue only to the extent that contract costs related to the claim have been incurred and when it is probable that the unapproved change order or claim will result in: • a bona fide addition to contract value; and • revenues can be reliably estimated. These two conditions are satisfied when: • the contract or other evidence provides a legal basis for the unapproved change order or claim, or a legal opinion is obtained providing a reasonable basis to support the unapproved change order or claim; • additional costs incurred were caused by unforeseen circumstances and are not the result of deficiencies in the Company’s performance; • costs associated with the unapproved change order or claim are identifiable and reasonable in view of work performed; and • evidence supporting the unapproved change order or claim is objective and verifiable. This can lead to a situation where costs are recognized in one period and revenue is recognized when customer agreement is obtained or claim resolution occurs, which can be in subsequent periods. The Company’s long term contracts typically allow its customers to unilaterally reduce or eliminate the scope of the work as contracted without cause. These long term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. A contract is regarded as substantially completed when remaining costs and potential risks are insignificant in amount. The Company recognizes revenue from equipment rental as performance requirements are achieved in accordance with the terms of the relevant agreement with the customer, either at a monthly fixed rate or on a usage basis dependent on the number of hours that the equipment is used. Revenue is recognized from the foregoing activity once persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, fees are fixed and determinable and collectability is reasonably assured. d) Balance sheet classifications A one-year time period is typically used as the basis for classifying current assets and liabilities. However, included in current assets and liabilities are amounts receivable and payable under construction contracts (principally holdbacks) that may extend beyond one year. e) Cash Cash includes cash on hand and bank balances net of outstanding cheques. f) Accounts receivable and unbilled revenue Accounts receivable are primarily comprised of amounts billed to clients for services already provided, but which have not yet been collected. Unbilled revenue represents revenue recognized from work performed in advance of amounts billed to clients. g) Billings in excess of costs incurred and estimated earnings on uncompleted contracts Billings in excess of costs incurred and estimated earnings on uncompleted contracts represent amounts invoiced in excess of revenue recognized. h) Allowance for doubtful accounts The Company evaluates the probability of collection of accounts receivable and records an allowance for doubtful accounts, which reduces accounts receivable to the amount management reasonably believes will be collected. In determining the amount of the allowance, the following factors are considered: the length of time the receivable has been outstanding, specific knowledge of each customer’s financial condition and historical experience. i) Inventories Inventories are carried at the lower of cost and net realizable value, and consist primarily of spare tires, tracks, track frames, fuel and lubricants. Cost is determined using the weighted average method. j) Property, plant and equipment Property, plant and equipment are recorded at cost. Major components of heavy construction equipment in use such as engines and drive trains are recorded separately. Equipment under capital lease is recorded at the present value of minimum lease payments at the inception of the lease. Depreciation is not recorded until an asset is available for use. Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 5,000 - 70,000 hours Major component parts in use Units of production 1,000 - 36,000 hours Other equipment Straight-line 5 – 10 years Licensed motor vehicles Straight-line 5 – 10 years Office and computer equipment Straight-line 4 years Buildings Straight-line 10 – 25 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term The costs for periodic repairs and maintenance are expensed to the extent the expenditures serve only to restore the assets to their normal operating condition without enhancing their service potential or extending their useful lives. k) Intangible assets Intangible assets include capitalized computer software and development costs, which are being amortized on a straight-line basis over a maximum period of four years. The Company expenses or capitalizes costs associated with the development of internal-use software as follows: • Preliminary project stage : Both internal and external costs incurred during this stage are expensed as incurred. • Application development stage : Both internal and external costs incurred to purchase and develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project. However, training costs and the costs incurred for the process of data conversion from the old system to the new system, which includes purging or cleansing of existing data, reconciliation or balancing of old data to the converted data in the new system, are expensed as incurred. • Post implementation/operation stage : All training costs and maintenance costs incurred during this stage are expensed as incurred. Costs of upgrades and enhancements are capitalized if the expenditures will result in added functionality to the software. l) Impairment of long-lived assets Long-lived assets or asset groups held and used including property, plant and equipment and identifiable intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value, which is charged to depreciation or amortization expense. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of its long-lived assets, such as: applicable industry performance and prospects; general business and economic conditions that prevail and are expected to prevail; expected growth; maintaining its customer base; and, achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of long-lived assets. Furthermore, the process of determining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates. m) Assets held for sale Long-lived assets are classified as held for sale when certain criteria are met, which include: • management, having the authority to approve the action, commits to a plan to sell the assets; • the assets are available for immediate sale in their present condition; • an active program to locate buyers and other actions to sell the assets have been initiated; • the sale of the assets is probable and their transfer is expected to qualify for recognition as a completed sale within one year ; • the assets are being actively marketed at reasonable prices in relation to their fair value; and • it is unlikely that significant changes will be made to the plan to sell the assets or that the plan will be withdrawn. A long-lived asset that is newly acquired and will be sold rather than held and used is classified as held for sale if the one year requirement is met and if the other requirements are expected to be met within a short period following the asset acquisition. Assets to be disposed of by sale are reported at the lower of their carrying amount or estimated fair value less costs to sell and are disclosed separately on the Consolidated Balance Sheets. These assets are not depreciated. Equipment disposal decisions are made using an approach in which a target life is set for each type of equipment. The target life is based on the manufacturer’s recommendations and the Company’s past experience in the various operating environments. Once a piece of equipment reaches its target life it is evaluated to determine if disposal is warranted based on its expected operating cost and reliability in its current state. If the expected operating cost exceeds the target operating cost for the fleet or if the expected reliability is lower than the target reliability of the fleet, the unit is considered for disposal. Expected operating costs and reliability are based on the past history of the unit and experience in the various operating environments. Once the Company has determined that the equipment will be disposed, and the criteria for assets held for sale are met, the unit is recorded in assets held for sale at the lower of depreciated cost or net realizable value. n) Asset retirement obligations Asset retirement obligations are legal obligations associated with the retirement of property, plant and equipment that result from their acquisition, lease, construction, development or normal operations. The Company recognizes its contractual obligations for the retirement of certain tangible long-lived assets. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of a liability for an asset retirement obligation is the amount at which that liability could be settled in a current transaction between willing parties. In the absence of observable market transactions, the fair value of the liability is determined as the present value of expected cash flows. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and then amortized using a systematic and rational method over its estimated useful life. In subsequent reporting periods, the liability is adjusted for the passage of time through an accretion charge and any changes in the amount or timing of the underlying future cash flows are recognized as an additional asset retirement cost. o) Foreign currency translation The functional currency of the Company and its subsidiaries is Canadian Dollars. Transactions denominated in foreign currencies are recorded at the rate of exchange on the transaction date. Monetary assets and liabilities, denominated in foreign currencies, are translated into Canadian Dollars at the rate of exchange prevailing at the balance sheet date. Foreign exchange gains and losses are included in the determination of earnings. p) Fair value measurement Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. q) Derivative financial instruments The Company has used derivative financial instruments to manage financial risks from fluctuations in exchange rates. Such instruments were only used for risk management purposes. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. r) Income taxes The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period of enactment. A valuation allowance is recorded against any deferred tax asset if it is more likely than not that the asset will not be realized. s) Tax positions The Company recognizes the effect of income tax positions only if those positions are more likely than not (greater than 50% ) of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. The Company accrues interest and penalties for uncertain tax positions in the period in which these uncertainties are identified. Interest and penalties are included in “General and administrative expenses” in the Consolidated Statements of Operations. t) Stock-based compensation The Company has a Share Option Plan which is described in note 21 (b). The Company accounts for all stock-based compensation payments that are settled by the issuance of equity instruments at fair value. Compensation cost is measured using the Black-Scholes model at the grant date and is expensed on a straight-line basis over the award’s vesting period, with a corresponding increase to additional paid-in capital. Upon exercise of a stock option, share capital is recorded at the sum of proceeds received and the related amount of additional paid-in capital. The Company has a Restricted Share Unit (“RSU”) Plan which is described in note 21 (c). RSUs are generally granted effective July 1 of each fiscal year with respect to services to be provided in that fiscal year and the following two fiscal years. The RSUs generally vest at the end of the three -year term. The Company settles all RSUs issued after February 19, 2014 with common shares purchased on the open market through a trust arrangement ("equity classified RSUs"). The Company settled RSUs issued prior to February 19, 2014 with cash ("liability classified RSUs"). Compensation expense on liability classified RSUs was calculated based on the number of vested RSUs multiplied by the fair value of each RSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value was to be determined. The Company recognized compensation cost over the three -year term of the liability classified RSU with any changes in fair value recognized in general and administrative expenses on the Consolidated Statements of Operations. At December 31, 2017 , there were no unrecognized compensation costs related to non-vested share-based payment arrangements under the liability classified RSU plan. The Company recognizes compensation cost over the three -year term of the equity classified RSUs in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. When dividends are paid on common shares, additional dividend equivalent RSUs are granted to all RSU holders as of the dividend payment date. The number of additional RSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding RSUs, divided by the fair market value of the Company's common shares on the dividend payment date. Such additional RSUs are granted subject to the same service criteria as the underlying RSUs. The Company has a Performance Restricted Share Unit ("PSU") plan which is described in note 21 (d). The PSUs vest at the end of a three -year term and are subject to the performance criteria approved by the Human Resources and Compensation Committee at the date of the grant. Such performance criterion includes the passage of time and is based upon the improvement of total shareholder return ("TSR") as compared to a defined company Canadian peer group. TSR is calculated using the fair market values of voting common shares at the grant date, the fair market value of voting common shares at the vesting date and the total dividends declared and paid throughout the vesting period. The grants are measured at fair value on the grant date using the Monte Carlo model. At the maturity date, the Human Resources and Compensation Committee will assess actual performance against the performance criteria and determine the number of PSUs that have been earned. The Company intends to settle all PSUs with common shares purchased on the open market through a trust arrangement. The Company recognizes compensation cost over the three -year term of the PSU in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. The Company has a Deferred Stock Unit (“DSU”) Plan which is described in note 21 (e). The DSU plan enables directors and executives to receive all or a portion of their annual fee or annual executive bonus compensation in the form of DSUs and are settled in cash. Compensation expense is calculated based on the number of DSUs multiplied by the fair market value of each DSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value is to be determined, with any changes in fair value recognized in general and administrative expenses on the Consolidated Statements of Operations. Compensation costs related to DSUs are recognized in full upon the grant date as the units vest immediately. When dividends are paid on common shares, additional dividend equivalent DSUs are granted to all DSU holders as of the dividend payment date. The number of additional DSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding DSUs, divided by the fair market value of the Company's common shares on the dividend payment date. Such additional DSUs are granted subject to the same service criteria as the underlying DSUs. As stock-based compensation expense recognized in the Consolidated Statements of Earnings is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised, in subsequent periods if actual forfeitures differ from those estimates. u) Net income (loss) per share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the year (see note 17 (b)). Diluted net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares outstanding during the year, adjusted for dilutive share amounts. The diluted per share amounts are calculated using the treasury stock method and the if-converted method. The treasury stock method increases the diluted weighted average shares outstanding to include additional shares from the assumed exercise of equity settled stock options, if dilutive. The number of additional shares determined using the treasury stock method is calculated by assuming outstanding in-the-money stock options were exercised and the proceeds from such exercises, including any unamortized stock-based compensation cost, were used to acquire shares of common stock at the average market price during the year. The if-converted method increases the diluted weighted average shares outstanding to include additional shares from the assumed conversion of convertible debentures, if dilutive. The number of additional shares is calculated by assuming the dilutive convertible shares would be outstanding for the entire period, or at the date of issuance, if later. If the convertible debentures are dilutive, the after tax interest expense related to the convertible debentures for the entire period, or from the date of issuance if later, is added back to the net income (loss). v) Leases Leases entered into by the Company in which substantially all the benefits and risks of ownership are transferred to the Company are recorded as obligations under capital leases and under the corresponding category of property, plant and equipment. Obligations under capital leases reflect the present value of future lease payments, discounted at an appropriate interest rate, and are reduced by rental payments net of imputed interest. All other leases are classified as operating leases and leasing costs, including any rent holidays, leasehold incentives, and rent concessions, are amortized on a straight-line basis over the lease term. Certain operating lease and rental agreements provide a maximum operating hour usage limit, above which the Company will be required to pay for the over limit usage as a contingent rent expense. These contingent expenses are recognized when the likelihood of exceeding the usage limit is considered probable and are due at the end of the lease term or rental period. The contingent rental expenses are included in “Equipment costs” in the Consolidated Statements of Operations. w) Deferred financing costs Underwriting, legal and other direct costs incurred in connection with the issuance of debt are presented as deferred financing costs. Deferred financing costs related to the issuance of the Convertible Debentures and the Previous Term Loans are included within liabilities on the Consolidated Balance Sheets and are amortized using the effective interest rate method over the term to maturity. Deferred financing costs related to the Revolver, and the Previous Revolver, are included within other assets on the Consolidated Balance Sheets and are amortized ratably over the term of the Credit Facility. |
Accounting pronouncements recen
Accounting pronouncements recently adopted | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting pronouncements recently adopted | Accounting pronouncements recently adopted a) Inventory In July 2015, the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This accounting standard simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value from the lower of cost or market. This standard was adopted January 1, 2017 and the adoption did not have a material effect on the Company's consolidated financial statements. b) Accounting Changes and Error Corrections In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error corrections (Topic 250) and investments - Equity Method and Joint ventures (Topic 323) to enhance disclosures of new accounting standards, including a comparison to current accounting policies, and the progress status of implementation.This ASU applies to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606); ASU No. 2016-02, Leases (Topic 842); and ASU 2016-03, Financial Instruments - Credit Losses (Topic 326). This standard was effective upon issuance and has been adopted by the Company. |
Recent accounting pronouncement
Recent accounting pronouncements not yet adopted | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted a) Revenue from Contracts with Customers In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued several related ASUs which provide guidance that requires an entity to recognize revenue in accordance with a five step model. Topic 606 will replace nearly all existing US GAAP revenue guidance, including industry-specific requirements, with a single comprehensive standard and significantly expands the disclosure requirements for revenue arrangements. The model is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the total consideration to which the entity expects to be entitled, during the term of the contract, in exchange for those goods or services. The new standard, as amended, will be effective for the Company for interim and annual reporting periods commencing January 1, 2018. The standard allows the use of either a full retrospective approach with restatement of all prior periods presented, or a modified retrospective approach with a cumulative effect adjustment as of the date of initial application. The Company will adopt Topic 606 applying the modified retrospective approach to only contracts that were not completed contracts with the cumulative effect adjustment recorded to equity at January 1, 2018, subject to the allowable and elected practical expedient. To date, the Company has assessed Topic 606 to identify accounting and disclosure gaps specific to the work performed by the Company, determined the new data requirements to identify information gaps, and systems and/or reports that require modifications, considered changes to chart of accounts to facilitate entering and tracking of required information, and mapped processes to determine required changes to policies, procedures, and controls. The Company currently recognizes revenue on its construction contracts, which comprise the majority of overall revenue, as costs are incurred on undefined scope work and using a percentage-of-completion method for defined scope work. With respect to the undefined scope work, revenue recognition under the new standard will be materially the same as revenue recognition under the existing standard for undefined scope work. With respect to revenue recognized using a percentage-of-completion method for defined scope work, the Company uses the input method of costs incurred to measure progress towards completion as that most accurately depicts the Company’s performance. As this method is permitted under the new standard, the Company will continue in its application. However, there are certain areas where the Company is quantifying the impact, if any, on its contracts that are in progress for the cumulative effect adjustment as the timing of revenue recognition may change under the new standard. These areas include identifying separate performance obligations, assessing contract modification including claims revenue, estimating variable consideration including contract incentives and penalties, and considering treatment of contract costs to obtain and fulfill a contract. There will be no changes to the treatment of cash flows and cash will continue to be collected in line with contractual terms. The Company expects to add significant disclosures based on the prescribed requirements. These new disclosures will include information regarding the significant judgments used in evaluating when and how revenues are recognized and information related to contract assets and deferred revenues. In addition, the new guidance requires that the Company’s revenue recognition policy disclosure includes additional detail regarding the various performance obligations and the nature, amount, timing and estimates of revenues and cash flows generated from contracts with customers. The Company is drafting the relevant disclosures to reflect the requirements of the new standard and expects to apply the practical expedient to not disclose any information about remaining performance obligations that have original expected durations of one year or less. b) Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to supersede the current leases accounting standard (Topic 840). The main difference between the new standard and the current standard is the requirement that lessees recognize a lease liability and a right-of-use asset for leases currently classified as operating leases with a term longer than twelve months. Lessor accounting remains largely unchanged. Additionally, the standard requires that for a sale to occur in a sale-leaseback transaction, the transfer of assets must meet the requirements for a sale under Topic 606. The standard requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company continues to evaluate the impact of adopting the standard on its financial statements and disclosure through its change management plan which guides the adoption of the standard. The Company has compiled an inventory of all leases and is analyzing individual contracts or groups of contracts to identify any significant differences and the impact on lease transactions as a result of adopting the new standard. Through this process, the Company will also quantify the impact, on in-scope prior period transactions as well as assess the Company’s policies, practices, procedures, controls, and systems for changes necessary to process and compile the information to meet the requirements of the new standard. The new standard will be effective for interim and annual reporting periods commencing January 1, 2019, with early adoption permitted. c) Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230: Classification of Certain Cash Receipts and Cash Payments). This accounting standard eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayments or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. This ASU will be effective commencing January 1, 2018, with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. d) Stock-Based Compensation In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718: Scope of Modification Accounting). This accounting standard update clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This ASU will be effective commencing January 1, 2018, with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable December 31, 2017 December 31, 2016 Trade $ 45,158 $ 38,746 Holdbacks 558 528 Other 1,512 806 $ 47,228 $ 40,080 Holdbacks represent amounts up to 10% of the contract value under certain contracts that the customer is contractually entitled to withhold until completion of the project or until certain project milestones are achieved. |
Costs incurred and estimated ea
Costs incurred and estimated earnings net of billings on uncompleted contracts | 12 Months Ended |
Dec. 31, 2017 | |
Contractors [Abstract] | |
Costs incurred and estimated earnings net of billings on uncompleted contracts | Costs incurred and estimated earnings net of billings on uncompleted contracts December 31, 2017 December 31, 2016 Costs incurred and estimated earnings on uncompleted contracts $ 199,863 $ 208,030 Less billings to date (179,800 ) (193,136 ) $ 20,063 $ 14,894 Costs incurred and estimated earnings net of billings on uncompleted contracts is presented in the Consolidated Balance Sheets under the following captions: December 31, 2017 December 31, 2016 Unbilled revenue $ 21,572 $ 15,965 Billings in excess of costs incurred and estimated earnings on uncompleted contracts (824 ) (1,071 ) $ 20,748 $ 14,894 Unbilled revenue related to non-construction activities amounted to $685 ( December 31, 2016 - $nil ). |
Prepaid expenses and deposits
Prepaid expenses and deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and deposits | Prepaid expenses and deposits December 31, 2017 December 31, 2016 Prepaid insurance and deposits $ 844 $ 565 Current portion of prepaid lease payments 1,054 986 $ 1,898 $ 1,551 The long term portion of prepaid lease payments is recorded in other assets (note 10(a)) . |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Assets held for sale | Assets held for sale At December 31, 2017 , the Company classified $5,642 of property, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheets (2016 - $247 ). During the year ended December 31, 2017 , impairment of assets held for sale amounting to $1,621 has been included in depreciation expense in the Consolidated Statements of Operations ( 2016 – $1,556 ). The write-down is the amount by which the carrying value of the related assets exceeded their fair value less costs to sell. The gain on disposal of assets held for sale was $166 for the year ended December 31, 2017 ( 2016 – gain of $374 ). The estimated fair value of the property was based on the proceeds expected on the close of the sale. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment December 31, 2017 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 196,045 $ 77,726 $ 118,319 Major component parts in use 72,448 45,694 26,754 Other equipment 31,923 18,400 13,523 Licensed motor vehicles 18,298 14,888 3,410 Office and computer equipment 10,157 9,468 689 Land 7,168 — 7,168 Buildings 2,547 2,482 65 338,586 168,658 169,928 Assets under capital lease Heavy equipment 69,657 28,613 41,044 Major component parts in use 85,015 21,247 63,768 Other equipment 558 543 15 Licensed motor vehicles 5,129 1,242 3,887 Office and computer equipment 23 17 6 160,382 51,662 108,720 Total property, plant and equipment $ 498,968 $ 220,320 $ 278,648 December 31, 2016 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 188,785 $ 68,487 $ 120,298 Major component parts in use 64,229 49,673 14,556 Other equipment 31,670 16,335 15,335 Licensed motor vehicles 20,353 18,258 2,095 Office and computer equipment 9,769 9,112 657 Buildings 2,523 2,487 36 317,329 164,352 152,977 Assets under capital lease Heavy equipment 84,527 21,848 62,679 Major component parts in use 50,882 17,233 33,649 Other equipment 5,178 611 4,567 Licensed motor vehicles 3,373 805 2,568 Office and computer equipment 23 11 12 143,983 40,508 103,475 Total property, plant and equipment $ 461,312 $ 204,860 $ 256,452 During the year ended December 31, 2017 , additions to property, plant and equipment included $34,730 of assets that were acquired by means of capital leases ( 2016 – $23,490 ). Included in capital lease additions during the year ended December 31, 2017 was $20,697 related to sale-leaseback transactions ( 2016 - $12,674 ). Deferred gains on these transactions are included in other long term obligations and accrued liabilities and are amortized over the expected life of the equipment (note 16(d)) . Depreciation of equipment under capital lease of $19,483 ( 2016 – $18,536 ) was included in depreciation expense in the current year. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Other assets a) Other assets are as follows: December 31, 2017 December 31, 2016 Long term prepaid lease payments (note 7) $ 1,779 $ 1,839 Intangible assets (note 10(b)) 938 1,790 Deferred financing costs (note 10(c)) 707 320 Deferred lease inducement asset (note 10(d)) 784 927 Loan to partnership (note 24) 969 — $ 5,177 $ 4,876 b) Intangible assets December 31, 2017 December 31, 2016 Cost $ 18,188 $ 18,122 Accumulated amortization 17,250 16,332 Net book value $ 938 $ 1,790 During the year ended December 31, 2017 , the Company capitalized $66 ( 2016 – $ 304 ) of internally developed computer software costs. Amortization of intangible assets for the year ended December 31, 2017 was $918 ( 2016 – $1,688 ). The estimated amortization expense for future years is as follows: For the year ending December 31, 2018 $ 464 2019 266 2020 149 2021 59 $ 938 c) Deferred financing costs December 31, 2017 December 31, 2016 Cost $ 1,390 $ 550 Accumulated amortization 683 230 $ 707 $ 320 During the year ended December 31, 2017 , financing fees of $840 were incurred in connection with the revolving facilities under the credit facilities (note 13(b)) . These fees are being amortized ratably over the term of the credit facilities. Amortization of these deferred financing costs included in interest expense for the year ended December 31, 2017 was $453 ( 2016 – $162 ) (note 20) . d) Deferred lease inducements asset Lease inducements applicable to lease contracts are deferred and amortized as an increase in general and administrative expenses on a straight-line basis over the lease term, which includes the initial lease term and renewal periods only where renewal is determined to be reasonably assured. December 31, 2017 December 31, 2016 Balance, beginning of year $ 927 $ 1,070 Amortization of deferred lease inducements (143 ) (143 ) Balance, end of year $ 784 $ 927 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income tax provision differs from the amount that would be computed by applying the Federal and Provincial statutory income tax rates to income before income taxes. The reasons for the differences are as follows: Year ended December 31, 2017 2016 Income (loss) before income taxes $ 6,468 $ (494 ) Tax rate 27.00 % 27.00 % Expected expense (benefit) $ 1,746 $ (133 ) (Decrease) increase related to: Income tax adjustments and reassessments 30 246 Non taxable portion of capital gains (672 ) (465 ) Stock-based compensation 88 158 Other 12 145 Income tax expense (benefit) $ 1,204 $ (49 ) Classified as: Year ended December 31, 2017 2016 Deferred income tax expense (benefit) 1,204 (49 ) The deferred tax assets and liabilities are summarized below: December 31, 2017 December 31, 2016 Deferred tax assets: Tax credit carryforwards $ 18,619 $ 15,225 Deferred financing costs 52 355 Billings in excess of costs on uncompleted contracts 222 289 Capital lease obligations 17,961 16,578 Stock-based compensation 2,985 2,672 Other 2,357 1,273 Subtotal $ 42,196 $ 36,392 Less: valuation allowance (1,035 ) (1,035 ) $ 41,161 $ 35,357 Deferred tax liabilities: Unbilled revenue $ 5,231 $ 3,381 Assets held for sale 1,523 67 Accounts receivable – holdbacks 72 143 Property, plant and equipment 61,953 58,180 $ 68,779 $ 61,771 Net deferred income tax liability $ 27,618 $ 26,414 Classified as: December 31, 2017 December 31, 2016 Deferred tax asset $ 10,539 $ 13,807 Deferred tax liability (38,157 ) (40,221 ) $ (27,618 ) $ (26,414 ) In 2017 , the Company and its subsidiaries file income tax returns in the Canadian federal jurisdiction and one provincial jurisdiction ( 2016 - one provincial jurisdiction). At December 31, 2017 , the Company has a deferred tax asset of $ 17,584 resulting from non-capital net operating loss income tax carryforwards of $65,126 , which expire as follows: December 31, 2017 2025 $ 2 2026 151 2027 128 2028 — 2029 — 2030 — 2031 604 2032 9,354 2033 13,829 2034 8,317 2035 — 2036 5,691 2037 27,050 $ 65,126 At December 31, 2017 , the Company has recorded a full valuation allowance against the deferred tax asset of $1,035 resulting from net capital loss income tax carryforwards of $ 7,664 , which have an indefinite life. |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued liabilities | Accrued liabilities December 31, 2017 December 31, 2016 Accrued interest payable $ 714 $ 85 Payroll liabilities 8,828 7,733 Liabilities related to equipment leases 219 123 Current portion of deferred gain on sale-leaseback (note 16(a)) 1,445 586 Dividends payable (note 17(d)) 510 569 Income and other taxes payable 2,007 2,079 Liabilities related to tire disposal 156 — $ 13,879 $ 11,175 |
Long term debt
Long term debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long term debt | Long term debt a) Long term debt amounts are as follows: Current: December 31, 2017 December 31, 2016 Credit facilities (note 13(b)) $ — $ 8,246 Less: deferred financing costs — (77 ) $ — $ 8,169 Long term: December 31, 2017 December 31, 2016 Credit facilities (note 13(b)) $ 32,000 $ 31,326 Convertible Debentures (note 13(d)) 40,000 — Less: deferred financing costs (1,935 ) (60 ) $ 70,065 $ 31,266 b) Credit facilities December 31, 2017 December 31, 2016 Term Loan $ — $ 28,572 Revolver 32,000 11,000 Total credit facilities 32,000 39,572 Less: current portion — (8,246 ) $ 32,000 $ 31,326 On August 1, 2017, the Company entered into a new Credit Facility Agreement (the "Credit Facility") with a banking syndicate led by National Bank of Canada, replacing the Sixth Amended and Restated Credit Agreement (the “Previous Credit Facility”), which included a revolving loan (the "Previous Revolver") and a term loan (the "Previous Term Loan"). The Credit Facility matures on August 1, 2020. The Credit Facility is comprised solely of a revolving loan (the “Revolver”) which allows borrowing of up to $140.0 million with an ability to increase the maximum borrowings by an additional $25.0 million , subject to certain conditions. Unlike the Previous Credit Facility, the Credit Facility borrowing is not contingent upon the value of the borrowing base. The Credit Facility permits additional capital lease debt to a limit of $100.0 million . This facility matures on August 1, 2020, with an option to extend on an annual basis. As at December 31, 2017 , there was $0.8 million in issued letters of credit under the Credit Facility and the unused borrowing availability was $107.2 million . The Previous Credit Facility was composed of a $70.0 million Previous Revolver and a $30.0 million Previous Term Loan, contingent on a borrowing base which was determined by the value of accounts receivable, inventory, unbilled revenue and property, plant and equipment. As at December 31, 2016, under the Previous Revolver, there was $0.8 million in issued letters of credit and the borrowing base allowed for a maximum draw of $92.1 million . At December 31, 2016, the Company’s unused borrowing availability under the Previous Revolver was $58.2 million , which was limited by the borrowing base to $51.7 million . The Credit Facility has two financial covenants that must be tested quarterly on a trailing four quarter basis. The first covenant is the senior leverage ratio ("Senior Leverage Ratio") is defined as senior debt ("Senior Debt" is defined as interest bearing debt excluding Convertible Debentures) as compared to earnings before interest, taxes, depreciation, and amortization, excluding the effects of unrealized foreign exchange gain or loss, realized and unrealized gain or loss on derivative financial instruments, cash and non-cash stock-based compensation expense, gain or loss on disposal of property, plant and equipment, gain or loss on disposal of assets held for sale and certain other non-cash items included in the calculation of net income ("Adjusted EBITDA"). The second covenant is the fixed charge coverage ratio ("Fixed Charge Coverage Ratio") which is defined as Adjusted EBITDA less cash taxes to Fixed Charges. Fixed charges ("Fixed Charges") is defined as cash interest, scheduled payments on debt, unfunded cash distributions by the Company and unfunded capital expenditures. The Senior Leverage Ratio is to be maintained at less than 3.0 :1 and the Fixed Charge Coverage Ratio is to be maintained at a ratio greater than 1.15 :1. In the event the Company enters into an acquisition, the maximum allowable Senior Leverage Ratio would increase to 3.5 :1 for four quarters following the acquisition. As at December 31, 2017 , the Company was in compliance with financial covenants. The Credit Facility bears interest at Canadian prime rate, U.S. Dollar Base Rate, Canadian bankers’ acceptance rate or London interbank offered rate (LIBOR) (all such terms as used or defined in the Credit Facility), plus applicable margins. The Company is also subject to non-refundable standby fees, 0.35% to 0.65% depending on the Company's Senior Leverage Ratio, based on the undrawn portion of the Credit Facility. The Credit Facility is secured by a first priority lien on all of the Company's existing and after-acquired property. During the year ended December 31, 2017 , financing fees of $840 were incurred in connection with the Revolver under the New Credit Facility Agreement ( 2016 – $30 in connection with modifications to the Previous Revolver under the Previous Credit Facility Revolver). These amounts are included within deferred financing costs within other assets (note 10(c)) . During the year ended December 31, 2017 , the Company recorded a write-off of $329 in deferred financing fees associated with the extinguishment of the Previous Credit Facility. c) Series 1 Debentures During the year ended December 31, 2016 , the Company redeemed $19.9 million of the Series 1 Debentures, plus accrued and unpaid interest which brought the outstanding Series 1 Debentures balance to $nil . Upon the elimination of the Series 1 Debentures, the Company a recorded a $0.6 million write-off of deferred financing costs. d) Convertible Debentures On March 15, 2017, the Company issued $40.0 million in aggregate principal amount of 5.50% convertible unsecured subordinated debentures (the "Convertible Debentures") which mature on March 31, 2024. The Company pays interest at an annual rate of 5.50% , payable semi-annually on March 31 and September 30 of each year, commencing September 30, 2017. The Convertible Debentures may be converted into common shares of the Company at the option of the holder at a conversion price of $10.85 per common share, which is equivalent to approximately 92.1659 common shares per $1,000 principal amount of notes. The Convertible Debentures are not redeemable prior to March 31, 2020, except under certain conditions after a change in control has occurred. The Convertible Debentures are redeemable at the option of the Company, in whole or in part, at any time on or after March 31, 2020 at a redemption price equal to the principal amount provided that the market price of the common shares is at least 125% of the conversion price; and on or after March 31, 2022 at a redemption price equal to the principal amount, plus accrued and unpaid interest accrued to the redemption date. In each case, the Company must pay accrued and unpaid interest on the debentures redeemed to the applicable redemption date. If a change in control occurs, the Company is required to offer to purchase all of the Convertible Debentures at a price equal to 101% of the principal amount plus accrued and unpaid interest to the date of purchase. During the year ended December 31, 2017 , financing costs of $2,142 were incurred in connection with the issuance of the Convertible Debentures. This amount is included within deferred financing fees as a direct reduction to the carrying amount of long term debt (note 13(e)) . e) Deferred financing costs December 31, 2017 December 31, 2016 Cost $ 2,377 $ 235 Accumulated amortization 442 98 $ 1,935 $ 137 During the year ended December 31, 2017 , financing fees of $2,142 were incurred in connection with the issuance of the Convertible Debentures. These fees are being amortized using the effective interest method over the term to maturity. Amortization of these deferred financing costs included in interest expense for the year ended December 31, 2017 was $344 ( 2016 – $410 ) (note 20) . |
Capital lease obligations
Capital lease obligations | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Capital lease obligations | Capital lease obligations The minimum lease payments due in each of the next five fiscal years are as follows: 2018 $ 31,530 2019 20,696 2020 12,182 2021 4,892 2022 2,192 Subtotal: $ 71,492 Less: amount representing interest (at rates ranging from 2.75% to 7.51%) (4,523 ) Carrying amount of minimum lease payments $ 66,969 Less: current portion (29,136 ) Long term portion $ 37,833 |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial instruments and risk management | Financial instruments and risk management a) Fair value measurements In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing on each reporting date. Standard market conventions and techniques, such as discounted cash flow analysis and option pricing models, are used to determine the fair value of the Company’s financial instruments, including derivatives. All methods of fair value measurement result in a general approximation of value and such value may never actually be realized. The fair values of the Company’s cash, accounts receivable, unbilled revenue, loan to partnership, accounts payable, accrued liabilities and billings in excess approximate their carrying amounts due to the relatively short periods to maturity for the instruments. The fair values of amounts due under the Credit Facility are based on management estimates which are determined by discounting cash flows required under the instruments at the interest rate currently estimated to be available for instruments with similar terms. Based on these estimates, and by using the outstanding balance of $32.0 million at December 31, 2017 and $39.6 million at December 31, 2016 (note 13(b)) , the fair value of amounts due under the Credit Facility are not significantly different than the carrying value. Financial instruments with carrying amounts that differ from their fair values are as follows: December 31, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Fair Carrying Fair Capital lease obligations (i) Level 2 $ 66,969 $ 61,872 $ 61,400 $ 57,741 Convertible Debentures (ii) Level 1 40,000 38,700 — — (i) The fair values of amounts due under capital leases are based on management estimates which are determined by discounting cash flows required under the instruments at the interest rates currently estimated to be available for instruments with similar terms. (ii) The fair value of the Convertible Debentures is based upon the period end closing market price. Non-financial assets measured at estimated fair market value on a non-recurring basis as at December 31, 2017 and 2016 in the financial statements are summarized below: December 31, 2017 December 31, 2016 Carrying Amount Change in Fair Value Carrying Amount Change in Fair Value Assets held for sale $ 5,642 $ (72 ) $ 247 $ (1,556 ) Assets held for sale are reported at the lower of their carrying amount or estimated fair market value less cost to sell. The estimated fair market value less cost to sell of equipment assets held for sale (note 8) is determined internally by analyzing recent auction prices for equipment with similar specifications and hours used, the residual value of the asset and the useful life of the asset. The estimated fair market value of the equipment assets held for sale are classified under Level 3 of the fair value hierarchy. b) Risk management The Company is exposed to market and credit risks associated with its financial instruments. The Company will from time to time use various financial instruments to reduce market risk exposures from changes in foreign currency exchange rates and interest rates. The Company does not hold or use any derivative instruments for trading or speculative purposes. Overall, the Company’s Board of Directors has responsibility for the establishment and approval of the Company’s risk management policies. Management performs a risk assessment on a continual basis to help ensure that all significant risks related to the Company and its operations have been reviewed and assessed to reflect changes in market conditions and the Company’s operating activities. c) Market risk Market risk is the risk that the future revenue or operating expense related cash flows, the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices such as foreign currency exchange rates and interest rates. The level of market risk to which the Company is exposed at any point in time varies depending on market conditions, expectations of future price or market rate movements and composition of the Company’s financial assets and liabilities held, non-trading physical assets and contract portfolios. To manage the exposure related to changes in market risk, the Company has used various risk management techniques including the use of derivative instruments. Such instruments may be used to establish a fixed price for a commodity, an interest bearing obligation or a cash flow denominated in a foreign currency. The sensitivities provided below are hypothetical and should not be considered to be predictive of future performance or indicative of earnings on these contracts. i) Foreign exchange risk The Company regularly transacts in foreign currencies when purchasing equipment and spare parts as well as certain general and administrative goods and services. These exposures are generally of a short-term nature and the impact of changes in exchange rates has not been significant in the past. The Company may fix its exposure in either the Canadian Dollar or the US Dollar for these short term transactions, if material. ii) Interest rate risk The Company is exposed to interest rate risk from the possibility that changes in interest rates will affect future cash flows or the fair values of its financial instruments. Interest expense on borrowings with floating interest rates, including the Company’s Credit Facility, varies as market interest rates change. At December 31, 2017 , the Company held $32.0 million of floating rate debt pertaining to its Credit Facility ( December 31, 2016 – $39.6 million ). As at December 31, 2017 , holding all other variables constant, a 100 basis point change to interest rates on floating rate debt will result in $0.3 million corresponding change in annual interest expense. This assumes that the amount of floating rate debt remains unchanged from that which was held at December 31, 2017 . The fair value of financial instruments with fixed interest rates fluctuate with changes in market interest rates. However, these fluctuations do not affect earnings, as the Company’s debt is carried at amortized cost and the carrying value does not change as interest rates change. The Company manages its interest rate risk exposure by using a mix of fixed and variable rate debt and may use derivative instruments to achieve the desired proportion of variable to fixed-rate debt. d) Credit risk Credit risk is the risk that financial loss to the Company may be incurred if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company manages the credit risk associated with its cash by holding its funds with what it believes to be reputable financial institutions. The Company is also exposed to credit risk through its accounts receivable and unbilled revenue. Credit risk for trade and other accounts receivables and unbilled revenue are managed through established credit monitoring activities. The Company has a concentration of customers in the oil and gas sector. The following customers accounted for 10% or more of total revenues: Year ended December 31, 2017 2016 Customer A 44 % 47 % Customer B 26 % 25 % Customer C 17 % 21 % The concentration risk is mitigated primarily by the customers being large investment grade organizations. The credit worthiness of new customers is subject to review by management through consideration of the type of customer and the size of the contract. At December 31, 2017 and December 31, 2016 , the following customers represented 10% or more of accounts receivable and unbilled revenue: December 31, 2017 December 31, 2016 Customer 1 42 % 42 % Customer 2 20 % 22 % Customer 3 10 % 7 % Customer 4 10 % 13 % Customer 5 2 % 13 % The Company reviews its accounts receivable amounts regularly and amounts are written down to their expected realizable value when outstanding amounts are determined not to be fully collectible. This generally occurs when the customer has indicated an inability to pay, the Company is unable to communicate with the customer over an extended period of time, and other methods to obtain payment have not been successful. Bad debt expense is charged to project costs in the Consolidated Statements of Operations in the period that the account is determined to be doubtful. Estimates of the allowance for doubtful accounts are determined on a customer-by-customer evaluation of collectability at each reporting date taking into consideration the following factors: the length of time the receivable has been outstanding, specific knowledge of each customer’s financial condition and historical experience. The Company reviews its unbilled revenue regularly and assesses any amounts that are not billed within the next billing cycle to confirm collectability. The Company’s maximum exposure to credit risk for accounts receivable and unbilled revenue is as follows: December 31, 2017 December 31, 2016 Trade accounts receivables $ 45,716 $ 39,274 Other receivables 1,512 806 Total accounts receivable $ 47,228 $ 40,080 Unbilled revenue 21,572 15,965 Total $ 68,800 $ 56,045 Payment terms are per the negotiated customer contracts and generally range between net 15 days and net 60 days. As at December 31, 2017 and December 31, 2016 , trade receivables are aged as follows: December 31, 2017 December 31, 2016 Not past due $ 42,882 $ 34,263 Past due 1-30 days 2,566 2,956 Past due 31-60 days — 2,000 More than 61 days 268 55 Total $ 45,716 $ 39,274 As at December 31, 2017 , the Company has recorded an allowance for doubtful accounts of $nil ( December 31, 2016 - $nil ). |
Other long term obligations
Other long term obligations | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other long term obligations | Other long term obligations a) Other long term obligations are as follows: December 31, 2017 December 31, 2016 Deferred lease inducements liability (note 16(b)) $ 10 $ 38 Asset retirement obligation (note 16(c)) 744 678 Directors' deferred stock unit plan (note 21(e)) 5,672 4,945 Deferred gain on sale-leaseback (note 16(d)) 7,654 3,199 $ 14,080 $ 8,860 Less current portion of: Deferred gain on sale-leaseback (note 16(d)) (1,445 ) (586 ) $ 12,635 $ 8,274 b) Deferred lease inducements liability Lease inducements applicable to lease contracts are deferred and amortized as a reduction of general and administrative expenses on a straight-line basis over the lease term, which includes the initial lease term and renewal periods only where renewal is determined to be reasonably assured. December 31, 2017 December 31, 2016 Balance, beginning of year $ 38 $ 145 Amortization of deferred lease inducements (28 ) (107 ) Balance, end of year $ 10 $ 38 c) Asset retirement obligation The Company recorded an asset retirement obligation related to the future retirement of a facility on leased land. Accretion expense associated with this obligation is included in equipment costs in the Consolidated Statements of Operations. The following table presents a continuity of the liability for the asset retirement obligation: December 31, 2017 December 31, 2016 Balance, beginning of year $ 678 $ 617 Accretion expense 66 61 Balance, end of year $ 744 $ 678 At December 31, 2017 , estimated undiscounted cash flows required to settle the obligation were $1,084 ( December 31, 2016 – $1,084 ). The credit adjusted risk-free rate assumed in measuring the asset retirement obligation was 9.42% . The Company expects to settle this obligation in 2021 . d) Deferred gain on sale-leaseback At December 31, 2017 , the Company recorded a gain of $5,155 ( December 31, 2016 – $2,792 ) on the sale-leaseback of certain heavy equipment. The gain on sale has been deferred and is being amortized in the Consolidated Statements of Operations over the expected useful life of the equipment. December 31, 2017 December 31, 2016 Balance, beginning of year $ 3,199 $ 780 Addition 5,155 2,792 Amortization of deferred gain on sale-leaseback (700 ) (373 ) Balance, end of year $ 7,654 $ 3,199 |
Shares
Shares | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shares | Shares a) Common shares Issued and outstanding: Voting common shares Treasury shares Common shares outstanding, net of treasury shares Issued and outstanding at December 31, 2015 33,150,281 (1,256,803 ) 31,893,478 Issued upon exercise of stock options (note 21(b)) 102,040 — 102,040 Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 21(c(i)) and 21(d)) — (1,043,998 ) (1,043,998 ) Settlement of certain equity classified stock-based compensation — 87,554 87,554 Retired through Share Purchase Program (note 17(c)) (2,733,414 ) — (2,733,414 ) Issued and outstanding at December 31, 2016 30,518,907 (2,213,247 ) 28,305,660 Issued upon exercise of stock options (note 21(b)) 176,800 — 176,800 Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 21(c(i)) and 21(d)) — (758,271 ) (758,271 ) Settlement of certain equity classified stock-based compensation — 353,592 353,592 Retired through Share Purchase Programs (note 17(c)) (2,625,557 ) — (2,625,557 ) Issued and outstanding at December 31, 2017 28,070,150 (2,617,926 ) 25,452,224 On June 12, 2014, the Company entered into a trust arrangement whereby the trustee will purchase and hold common shares, classified as treasury shares on our Consolidated Balance Sheets, until such time that units issued under certain stock-based compensation plans are to be settled (note 21(c(i)) and 21(d)) . Upon settlement of certain equity classified stock-based compensation during the year ended December 31, 2017 , the Company repurchased 161,285 shares at $987 to satisfy the recipient tax withholding requirements (year ended December 31, 2016 - 35,313 shares at $130 ). The repurchased shares to satisfy the recipient tax withholding requirements are net against the purchase of treasury shares for settlement of certain equity classified stock-based compensation. b) Net income (loss) per share Year ended December 31, 2017 2016 Net income (loss) available to common shareholders $ 5,264 $ (445 ) Weighted average number of common shares 26,697,066 29,965,899 Weighted average of effects: Dilutive effect of treasury shares 2,622,957 — Dilutive effect of stock options 285,703 — Weighted average number of diluted common shares 29,605,726 29,965,899 Basic net income (loss) per share $ 0.20 $ (0.01 ) Diluted net income (loss) per share $ 0.18 $ (0.01 ) For the year ended December 31, 2017 , there were 469,819 stock options, nil treasury shares and 2,949,309 shares issuable on conversion of Convertible Debentures that were anti-dilutive and therefore not considered in computing diluted earnings per share (year ended December 31, 2016 – 1,176,080 stock options and 2,213,247 treasury shares). c) Share purchase programs The Company engaged in the following normal course issuer bids ("NCIBs") during the years ended December 31, 2016 and December 31, 2017: Commencement date Facilities Maximum number of shares to be purchased Actual number of shares purchased and subsequently cancelled Reduction to common shares Increase to additional paid in capital March 21, 2016 NYSE 1,657,514 1,657,514 $ 14,121 $ 9,021 August 9, 2016 TSX 1,075,968 1,075,900 9,237 5,133 Total during the year ended December 31, 2016 2,733,482 2,733,414 $ 23,358 $ 14,154 First phase: amended NCIB (i) TSX 819,395 819,395 $ 7,057 $ 1,576 Second phase: amended NCIB (ii) TSX 838,119 663,400 5,706 1,908 August 14, 2017 (iii)(iv) NYSE, TSX 2,424,333 1,142,762 9,810 4,119 Total during the year ended December 31, 2017 4,081,847 2,625,557 $ 22,573 $ 7,603 (i) On March 28, 2017 the Company announced an increase to the maximum number of shares to be purchased relating to the NCIB that commenced on August 9, 2016 from the original 1,075,968 to 1,895,363 as of April 1, 2017. (ii) On May 25, 2017 the Company announced a further increase to the maximum number of shares to be purchased relating to the NCIB that commenced on August 9, 2016 from the amended 1,895,363 to 2,733,482 as of June 1, 2017. (iii) This NCIB is ongoing. All other NCIBs have reached expiration. (iv) In order to comply with relevant securities laws, the Company can purchase a maximum of 1,460,089 of the shares on the NYSE, which represents 5% of the issued and outstanding common shares. d) Dividends The Company intends to pay an annual aggregate dividend of eight Canadian cents ( $0.08 ) per common share, payable on a quarterly basis. During the year ended December 31, 2017 , the Company paid regular quarterly cash dividends of $0.02 per share on common shares ( December 31, 2016 - $0.02 ). At December 31, 2017 , an amount of $510 was included in accrued liabilities related to the dividend declared on October 31, 2017 ( December 31, 2016 - $569 ). |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The annual future minimum operating lease payments for premises for the next five years are as follows: For the year ending December 31, 2018 $ 3,248 2019 2,238 2020 2,348 2021 2,374 2022 2,318 $ 12,526 Included in general and administrative expenses and equipment costs are operating lease expenses relating to premises of $2,902 and $3,515 for the years ended December 31, 2017 and 2016 , respectively. During the year ended December 31, 2017, the Company entered into a contract to incur capital expenditures related to the development of property, plant and equipment for $17.6 million . This commitment is expected to be settled in 2018. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies During the normal course of the Company's operations, various disputes, legal and tax matters are pending. In the opinion of management, these matters will not have a material effect on the Company's consolidated financial statements. |
Interest expense
Interest expense | 12 Months Ended |
Dec. 31, 2017 | |
Interest Expense [Abstract] | |
Interest expense | Interest expense Year ended December 31, 2017 2016 Interest on capital lease obligations $ 3,023 $ 2,836 Interest on credit facilities 1,507 1,593 Interest on Series 1 Debentures — 977 Interest on Convertible Debentures 1,760 — Amortization of deferred financing costs (note 10(c) and note 13(e)) 797 572 Interest on long term debt $ 7,087 $ 5,978 Other interest income (144 ) (194 ) $ 6,943 $ 5,784 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation a) Stock-based compensation expenses Stock-based compensation expenses included in general and administrative expenses are as follows: Year ended December 31, 2017 2016 Share option plan (note 21(b)) $ 326 $ 587 Liability classified restricted share unit plan (note 21(c(i))) — 52 Equity classified restricted share unit plan (note 21(c(ii))) 1,293 1,384 Equity performance restricted share unit plan (note 21(d)) 1,306 820 Liability classified deferred stock unit plan (note 21(e)) 1,070 3,187 $ 3,995 $ 6,030 b) Share option plan Under the 2004 Amended and Restated Share Option Plan, which was approved and became effective in 2006, directors, officers, employees and certain service providers to the Company are eligible to receive stock options to acquire voting common shares in the Company. Each stock option provides the right to acquire one common share in the Company and expires ten years from the grant date or on termination of employment. Options may be exercised at a price determined at the time the option is awarded, and vest as follows: no options vest on the award date and twenty percent vest on each subsequent anniversary date. For the year ended December 31, 2017 , 3,399,399 shares are reserved and authorized for issuance under the share option plan. Number of options Weighted average Outstanding at December 31, 2015 1,448,000 5.33 Exercised (i) (102,040 ) 2.77 Forfeited (169,880 ) 5.31 Outstanding at December 31, 2016 1,176,080 5.56 Exercised (i) (176,800 ) 3.26 Forfeited (85,740 ) 12.36 Outstanding at December 31, 2017 913,540 5.36 (i) All stock options exercised resulted in new common shares being issued (note 17(a)) . Cash received from options exercised for the year ended December 31, 2017 was $575 ( 2016 - $284 ). For the year ended December 31, 2017 , the total intrinsic value of options exercised, calculated as the market value at the exercise date less exercise price, multiplied by the number of units exercised, was $ 640 ( December 31, 2016 - $187 ). The following table summarizes information about stock options outstanding at December 31, 2017 : Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted Weighted $2.75 187,420 4.3 years $ 2.75 187,420 4.3 years $ 2.75 $2.79 300,000 4.5 years $ 2.79 300,000 4.5 years $ 2.79 $3.69 25,800 0.9 years $ 3.69 25,800 0.9 years $ 3.69 $5.91 132,000 6.0 years $ 5.91 105,600 6.0 years $ 5.91 $6.56 70,780 3.9 years $ 6.56 70,780 3.9 years $ 6.56 $8.28 10,000 1.5 years $ 8.28 10,000 1.5 years $ 8.28 $8.58 30,000 2.7 years $ 8.58 30,000 2.7 years $ 8.58 $9.33 55,780 2.1 years $ 9.33 55,780 2.1 years $ 9.33 $10.13 51,760 3.0 years $ 10.13 51,760 3.0 years $ 10.13 $16.46 50,000 0.3 years $ 16.46 50,000 0.3 years $ 16.46 913,540 4.0 years $ 5.36 887,140 3.9 years $ 5.35 At December 31, 2017 , the weighted average remaining contractual life of outstanding options was 4.0 years (December 31, 2016 – 4.8 years ) and the weighted average exercise price was $5.36 ( December 31, 2016 - $5.56 ). The fair value of options vested during the year ended December 31, 2017 was $518 (December 31, 2016 – $594 ). At December 31, 2017 , the Company had 887,140 exercisable options (December 31, 2016 – 898,500 ) with a weighted average exercise price of $5.35 (December 31, 2016 – $6.21 ). At December 31, 2017 , the total compensation costs related to non-vested awards not yet recognized was $46 (December 31, 2016 – $269 ) and these costs are expected to be recognized over a weighted average period of 1.0 year (December 31, 2016 – 0.9 years). There were no stock options granted under this plan for the years ended December 31, 2017 and 2016 , respectively. c) Restricted share unit plan Restricted Share Units (“RSU”) are granted each year to executives and other key employees with respect to services to be provided in that year and the following two years. The majority of RSUs vest at the end of a three -year term. The Company intends to settle all RSUs issued after February 19, 2014 with common shares purchased on the open market through a trust arrangement ("equity classified RSUs"). i) Liability classified restricted share unit plan Number of units Outstanding at December 31, 2015 290,790 Vested (290,790 ) Outstanding at December 31, 2016 and 2017 — The remaining liability classified RSUs were settled in cash for $723 during the year ended December 31, 2016. ii) Equity classified restricted share unit plan Number of units Weighted average exercise price Outstanding at December 31, 2015 774,156 4.45 Granted 501,523 3.78 Vested (87,580 ) 3.51 Forfeited (64,124 ) 3.50 Outstanding at December 31, 2016 1,123,975 4.20 Granted 355,292 6.02 Vested (259,860 ) 6.24 Forfeited (29,474 ) 4.00 Outstanding at December 31, 2017 1,189,933 4.22 At December 31, 2017 , there were approximately $2,199 of unrecognized compensation costs related to non–vested share–based payment arrangements under the equity classified RSU plan ( December 31, 2016 – $1,945 ) and these costs are expected to be recognized over the weighted average remaining contractual life of the RSUs of 1.3 years ( December 31, 2016 – 1.6 years). During the year ended December 31, 2017 , 259,860 units vested, which were settled with common shares purchased on the open market through a trust arrangement ( December 31, 2016 - 87,580 units). d) Performance restricted share units On June 11, 2014, the Company entered into an amended and restated executive employment agreement with the Chief Executive Officer (the "CEO") and granted Performance Restricted Share Units ("PSU") as a long-term incentive, which became effective July 1, 2014. Commencing with a grant on July 1, 2015, PSUs were granted to certain additional senior management employees as part of their long-term incentive compensation. The PSUs vest at the end of a three -year term and are subject to performance criteria approved by the Human Resources and Compensation Committee at the date of the grant. The Company intends to settle earned PSUs with common shares purchased on the open market through a trust arrangement. Number of units Weighted average exercise price Outstanding at December 31, 2015 423,592 4.86 Granted 343,706 4.97 Forfeited (27,998 ) 4.52 Outstanding at December 31, 2016 739,300 4.84 Granted 248,824 5.98 Vested (69,949 ) 8.57 Forfeited (21,542 ) 4.05 Outstanding at December 31, 2017 896,633 4.81 At December 31, 2017 , there were approximately $2,250 of total unrecognized compensation costs related to non–vested share–based payment arrangements under the PSU plan ( December 31, 2016 - $1,878 ) and these costs are expected to be recognized over the weighted average remaining contractual life of the PSUs of 1.36 years ( December 31, 2016 - 1.75 years). During the year ended December 31, 2017 , 69,949 units vested and were settled through common shares from the trust arrangement at a factor of 1.34 common shares per PSU based on performance against grant date criteria ( December 31, 2016 - nil units). The Company estimated the fair value of the PSUs granted during the years ended December 31, 2017 and 2016 using a Monte Carlo simulation with the following assumptions: 2017 2016 Risk-free interest rate 1.17 % 0.52 % Expected volatility 46.47 % 43.30 % e) Deferred stock unit plan On November 27, 2007, the Company approved a Deferred Stock Unit (“DSU”) Plan, which became effective January 1, 2008. Under the DSU plan non-officer directors of the Company receive 50% of their annual fixed remuneration (which is included in general and administrative expenses) in the form of DSUs and may elect to receive all or a part of their annual fixed remuneration in excess of 50% in the form of DSUs. On February 19, 2014, the Company modified its DSU plan to permit awards to executives in addition to directors, whereby eligible executives could elect to receive up to 50% of their annual bonus in the form of DSUs. On December 2, 2015, the executive participation aspect of the plan ended, though DSU’s granted to executives prior to this date will continue to be held. The DSUs vest immediately upon issuance and are only redeemable upon death or retirement of the participant. DSU holders that are not US taxpayers, may elect to defer the redemption date until a date no later than December 1st of the calendar year following the year in which the retirement or death occurred. Number of units Outstanding at December 31, 2015 928,874 Granted 171,980 Redeemed (158,917 ) Outstanding at December 31, 2016 941,937 Granted 114,895 Redeemed (65,249 ) Outstanding at December 31, 2017 991,583 At December 31, 2017 , the fair market value of these units was $5.72 per unit ( December 31, 2016 – $5.25 per unit). At December 31, 2017 , the current portion of DSU liabilities of $nil were included in accrued liabilities ( December 31, 2016 - $nil ) and the long term portion of DSU liabilities of $5,672 were included in other long term obligations ( December 31, 2016 - $4,945 ) in the Consolidated Balance Sheets. During the year ended December 31, 2017 , 65,249 units were redeemed and settled in cash for $343 ( December 31, 2016 - 158,917 units were redeemed and settled in cash for $488 ). There is no unrecognized compensation expense related to the DSUs since these awards vest immediately when issued. |
Other information
Other information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Other information | Other information a) Supplemental cash flow information Year ended December 31, 2017 2016 Cash paid during the year for: Interest $ 5,615 $ 5,895 Cash received during the year for: Interest 162 194 Year ended December 31, 2017 2016 Non-cash transactions: Addition of property, plant and equipment by means of capital leases 34,730 23,490 Acquisition of property, plant and equipment related to the initial investment in the partnership 2,581 — Increase in capital lease obligations related to the initial investment in the partnership 800 — Increase in long term debt related to the initial investment in the partnership 637 — Reclass from property, plant and equipment to assets held for sale (6,869 ) (1,374 ) Non-cash working capital exclusions: Increase in inventory related to the initial partnership investment (29 ) — Increase in prepaid expenses related to the initial investment in the partnership (4 ) — Decrease in inventory related to a non-monetary transaction — (575 ) Increase in accrued liabilities related to the current portion of the deferred gain on sale-leaseback 859 365 Net decrease in accrued liabilities related to current portion of RSU liability — (671 ) Net (decrease) increase in accrued liabilities related to dividend payable (59 ) 569 b) Net change in non-cash working capital The table below represents the cash (used in) provided by non-cash working capital: Year ended December 31, 2017 2016 Operating activities: Accounts receivable $ (7,148 ) $ (15,344 ) Unbilled revenue (5,607 ) 1,600 Inventories (1,288 ) (1,437 ) Prepaid expenses and deposits (283 ) 126 Accounts payable 5,640 4,517 Accrued liabilities 1,904 4,144 Billings in excess of costs incurred and estimated earnings on uncompleted contracts (247 ) 614 $ (7,029 ) $ (5,780 ) |
Claims revenue
Claims revenue | 12 Months Ended |
Dec. 31, 2017 | |
Contractors [Abstract] | |
Claims revenue | Claims revenue Year ended December 31, 2017 2016 Claims revenue recognized $ 1,168 $ 1,171 The table below represents the classification of uncollected claims on the balance sheet: December 31, 2017 December 31, 2016 Accounts receivable $ 358 $ 1,171 Unbilled revenue 7,662 7,088 $ 8,020 $ 8,259 |
Investment in partnership
Investment in partnership | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in partnership | Investment in partnership On April 1, 2017, the Company entered into a partnership agreement under the name "Dene North Site Services" with Dene Sky Site Services Ltd. ("Dene Sky"). The unincorporated partnership was formed for the purpose of establishing a strategic relation with a local operator in Northern Alberta in order to expand the Company's market opportunities in the region. The Company holds a 49% undivided ownership interest in the assets, liabilities and related revenue and expenses managed through the partnership agreement. The partnership agreement specifies that the economic activity and decision-making are jointly controlled and each partner is entitled to its share of the assets, liabilities, revenue and expenses. The Company is contingently liable under the partnership agreement for its portion of the partnership’s obligations and liabilities that could arise from construction contracts, potential lawsuits, lease commitments and financing agreements. At inception of the partnership, assets and liabilities were proportionately recognized within the Company's consolidated financial statements at 49% as follows: Assets Cash $ 1,131 Inventory 29 Prepaid expenses 4 Property, plant and equipment 2,581 Total assets $ 3,745 Liabilities Capital lease obligation $ 800 Long-term debt 637 Total liabilities $ 1,437 Total consideration paid $ 2,308 The financial data for the Company's 49% interest included in the consolidated financial statements is summarized as follows: Balance Sheet December 31, December 31, Assets Current assets $ 1,868 $ — Non-current assets 2,275 — Total assets $ 4,143 $ — Liabilities Current liabilities $ 1,094 $ — Long-term liabilities 1,141 — Total liabilities $ 2,235 $ — Net Assets $ 1,908 $ — As at December 31, 2017 , the Company had issued a loan to Dene North Site Services in the amount of $1,900 , which is included in the above current liabilities at 49% . Upon consolidation, the net receivable amount is included in other assets (note 10(a)) . Statement of Operations and Comprehensive Loss Year ended December 31, 2017 2016 Revenues $ 4,310 $ — Gross profit (i) 3,908 — Loss before taxes (401 ) — Net loss and comprehensive loss(ii) (401 ) — (i) Gross profit is defined as revenue less: project costs; equipment costs; and depreciation. (ii) For income tax purposes, all income attributed to the partnership agreement is allocated to the partners pro-rata in accordance with their respective interest. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans The Company and its subsidiaries match voluntary contributions made by employees to their Registered Retirement Savings Plans to a maximum of 5% of base salary for each employee. Contributions made by the Company during the year ended December 31, 2017 were $877 ( 2016 – $865 ). |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions On July 14, 2016, the Company appointed a new member to the Board of Directors. The director is currently the President and Chief Executive Officer of a business that subleases space from the Company. The sublease was entered into several years before the director's appointment. For the year ended December 31, 2017 , the Company received $332 in this related party transaction. |
Comparative figures
Comparative figures | 12 Months Ended |
Dec. 31, 2017 | |
Comparative figures [Abstract] | |
Comparative figures | Comparative figures Certain comparative figures have been reclassified from statements previously presented to conform to the presentation of the current year. |
Significant accounting polici35
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("US GAAP"). Material inter-company transactions and balances are eliminated upon consolidation. These consolidated financial statements include the accounts of the Company, its wholly-owned, Canadian incorporated subsidiaries, NACGI, North American Fleet Company Ltd., North American Construction Holdings Inc. (“NACHI”) and NACG Properties Inc., and the following 100% owned, Canadian incorporated subsidiaries of NACHI as of December 31, 2017: • North American Engineering Inc. • North American Site Development Ltd. • North American Enterprises Ltd. • North American Maintenance Ltd. • North American Mining Inc. • North American Tailings and Environmental Ltd. • North American Services Inc. • 1753514 Alberta Ltd. North American Enterprises Ltd. holds a 49% ownership interest in the assets, liabilities, revenue and expenses of a partnership agreement under the name Dene North Site Services. The Company records its share of the partnership assets, liabilities, revenues and expenses within its consolidated financial statements using the proportionate consolidation method (note 24) . |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures reported in these consolidated financial statements and accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates made by management include the assessment of the percentage of completion on time-and-materials, unit-price, lump-sum and cost-plus contracts with defined scope (including estimated total costs and provisions for estimated losses) and the recognition of claims and change orders on revenue contracts; assumptions used in impairment testing; and, estimates and assumptions used in the determination of the allowance for doubtful accounts, the recoverability of deferred tax assets and the useful lives of property, plant and equipment and intangible assets. The accuracy of the Company’s revenue and profit recognition in a given period is dependent on the accuracy of its estimates of the cost to complete for each project. Cost estimates for all significant projects use a detailed “bottom up” approach and the Company believes its experience allows it to provide reasonably dependable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability that are recognized in the period in which such adjustments are determined. The most significant of these include: • the completeness and accuracy of the original bid; • costs associated with added scope changes; • extended overhead due to owner, weather and other delays; • subcontractor performance issues; • changes in economic indices used for the determination of escalation or de-escalation for contractual rates on long-term contracts; • changes in productivity expectations; • site conditions that differ from those assumed in the original bid; • contract incentive and penalty provisions; • the availability and skill level of workers in the geographic location of the project; and • a change in the availability and proximity of equipment and materials. The foregoing factors as well as the mix of contracts at different margins may cause fluctuations in gross profit between periods. With many projects of varying levels of complexity and size in process at any given time, changes in estimates can offset each other without materially impacting the Company’s profitability. Major changes in cost estimates, particularly in larger, more complex projects, can have a significant effect on profitability. |
Revenue recognition | Revenue recognition The Company performs its projects under the following types of contracts: time-and-materials; cost-plus; unit-price; and lump-sum. Revenue is recognized as costs are incurred for time-and-materials, unit-price and cost-plus service contracts with no clearly defined scope. Revenue on cost-plus, unit-price, lump-sum and time-and-materials contracts with defined scope is recognized using the percentage-of-completion method, measured by the ratio of costs incurred to date to estimated total costs. The estimated total cost of the contract and percent complete is determined based upon estimates made by management. The costs of items that do not relate to performance of contracted work, particularly in the early stages of the contract, are excluded from costs incurred to date. The resulting percent complete methodology is applied to the approved contract value to determine the revenue recognized. Customer payment milestones typically occur on a periodic basis over the period of contract completion. The length of the Company’s contracts varies from less than one year for typical contracts to several years for certain larger contracts. Contract project costs include all direct labour, material, subcontract and equipment costs and those indirect costs related to contract performance such as indirect labour and supplies. General and administrative expenses are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in project performance, project conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and revenue that are recognized in the period in which such adjustments are determined. Profit incentives are included in revenue when their realization is reasonably assured. Once a project is underway, the Company will often experience changes in conditions, client requirements, specifications, designs, materials and work schedule. Generally, a “change order” will be negotiated with the customer to modify the original contract to approve both the scope and price of the change. Occasionally, however, disagreements arise regarding changes, their nature, measurement, timing and other characteristics that impact costs and revenue under the contract. When a change becomes a point of dispute between the Company and a customer, the Company will then consider it as a claim. Costs related to unapproved change orders and claims are recognized when they are incurred. Revenues related to unapproved change orders and claims are included in total estimated contract revenue only to the extent that contract costs related to the claim have been incurred and when it is probable that the unapproved change order or claim will result in: • a bona fide addition to contract value; and • revenues can be reliably estimated. These two conditions are satisfied when: • the contract or other evidence provides a legal basis for the unapproved change order or claim, or a legal opinion is obtained providing a reasonable basis to support the unapproved change order or claim; • additional costs incurred were caused by unforeseen circumstances and are not the result of deficiencies in the Company’s performance; • costs associated with the unapproved change order or claim are identifiable and reasonable in view of work performed; and • evidence supporting the unapproved change order or claim is objective and verifiable. This can lead to a situation where costs are recognized in one period and revenue is recognized when customer agreement is obtained or claim resolution occurs, which can be in subsequent periods. The Company’s long term contracts typically allow its customers to unilaterally reduce or eliminate the scope of the work as contracted without cause. These long term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. A contract is regarded as substantially completed when remaining costs and potential risks are insignificant in amount. The Company recognizes revenue from equipment rental as performance requirements are achieved in accordance with the terms of the relevant agreement with the customer, either at a monthly fixed rate or on a usage basis dependent on the number of hours that the equipment is used. Revenue is recognized from the foregoing activity once persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, fees are fixed and determinable and collectability is reasonably assured. |
Balance sheet classification | Balance sheet classifications A one-year time period is typically used as the basis for classifying current assets and liabilities. However, included in current assets and liabilities are amounts receivable and payable under construction contracts (principally holdbacks) that may extend beyond one year. |
Cash | Cash Cash includes cash on hand and bank balances net of outstanding cheques. |
Accounts receivable and unbilled revenue | Accounts receivable and unbilled revenue Accounts receivable are primarily comprised of amounts billed to clients for services already provided, but which have not yet been collected. Unbilled revenue represents revenue recognized from work performed in advance of amounts billed to clients. |
Billings in excess of costs incurred and estimated earnings on uncompleted contracts | Billings in excess of costs incurred and estimated earnings on uncompleted contracts Billings in excess of costs incurred and estimated earnings on uncompleted contracts represent amounts invoiced in excess of revenue recognized. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company evaluates the probability of collection of accounts receivable and records an allowance for doubtful accounts, which reduces accounts receivable to the amount management reasonably believes will be collected. In determining the amount of the allowance, the following factors are considered: the length of time the receivable has been outstanding, specific knowledge of each customer’s financial condition and historical experience. |
Inventories | Inventories Inventories are carried at the lower of cost and net realizable value, and consist primarily of spare tires, tracks, track frames, fuel and lubricants. Cost is determined using the weighted average method. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost. Major components of heavy construction equipment in use such as engines and drive trains are recorded separately. Equipment under capital lease is recorded at the present value of minimum lease payments at the inception of the lease. Depreciation is not recorded until an asset is available for use. Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 5,000 - 70,000 hours Major component parts in use Units of production 1,000 - 36,000 hours Other equipment Straight-line 5 – 10 years Licensed motor vehicles Straight-line 5 – 10 years Office and computer equipment Straight-line 4 years Buildings Straight-line 10 – 25 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term The costs for periodic repairs and maintenance are expensed to the extent the expenditures serve only to restore the assets to their normal operating condition without enhancing their service potential or extending their useful lives. |
Intangible assets | Intangible assets Intangible assets include capitalized computer software and development costs, which are being amortized on a straight-line basis over a maximum period of four years. The Company expenses or capitalizes costs associated with the development of internal-use software as follows: • Preliminary project stage : Both internal and external costs incurred during this stage are expensed as incurred. • Application development stage : Both internal and external costs incurred to purchase and develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project. However, training costs and the costs incurred for the process of data conversion from the old system to the new system, which includes purging or cleansing of existing data, reconciliation or balancing of old data to the converted data in the new system, are expensed as incurred. • Post implementation/operation stage : All training costs and maintenance costs incurred during this stage are expensed as incurred. Costs of upgrades and enhancements are capitalized if the expenditures will result in added functionality to the software. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets or asset groups held and used including property, plant and equipment and identifiable intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value, which is charged to depreciation or amortization expense. In determining whether an impairment exists, the Company makes assumptions about the future cash flows expected from the use of its long-lived assets, such as: applicable industry performance and prospects; general business and economic conditions that prevail and are expected to prevail; expected growth; maintaining its customer base; and, achieving cost reductions. There can be no assurance that expected future cash flows will be realized, or will be sufficient to recover the carrying amount of long-lived assets. Furthermore, the process of determining fair values is subjective and requires management to exercise judgment in making assumptions about future results, including revenue and cash flow projections and discount rates. |
Assets held for sale | Assets held for sale Long-lived assets are classified as held for sale when certain criteria are met, which include: • management, having the authority to approve the action, commits to a plan to sell the assets; • the assets are available for immediate sale in their present condition; • an active program to locate buyers and other actions to sell the assets have been initiated; • the sale of the assets is probable and their transfer is expected to qualify for recognition as a completed sale within one year ; • the assets are being actively marketed at reasonable prices in relation to their fair value; and • it is unlikely that significant changes will be made to the plan to sell the assets or that the plan will be withdrawn. A long-lived asset that is newly acquired and will be sold rather than held and used is classified as held for sale if the one year requirement is met and if the other requirements are expected to be met within a short period following the asset acquisition. Assets to be disposed of by sale are reported at the lower of their carrying amount or estimated fair value less costs to sell and are disclosed separately on the Consolidated Balance Sheets. These assets are not depreciated. Equipment disposal decisions are made using an approach in which a target life is set for each type of equipment. The target life is based on the manufacturer’s recommendations and the Company’s past experience in the various operating environments. Once a piece of equipment reaches its target life it is evaluated to determine if disposal is warranted based on its expected operating cost and reliability in its current state. If the expected operating cost exceeds the target operating cost for the fleet or if the expected reliability is lower than the target reliability of the fleet, the unit is considered for disposal. Expected operating costs and reliability are based on the past history of the unit and experience in the various operating environments. Once the Company has determined that the equipment will be disposed, and the criteria for assets held for sale are met, the unit is recorded in assets held for sale at the lower of depreciated cost or net realizable value. |
Asset retirement obligations | Asset retirement obligations Asset retirement obligations are legal obligations associated with the retirement of property, plant and equipment that result from their acquisition, lease, construction, development or normal operations. The Company recognizes its contractual obligations for the retirement of certain tangible long-lived assets. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of a liability for an asset retirement obligation is the amount at which that liability could be settled in a current transaction between willing parties. In the absence of observable market transactions, the fair value of the liability is determined as the present value of expected cash flows. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and then amortized using a systematic and rational method over its estimated useful life. In subsequent reporting periods, the liability is adjusted for the passage of time through an accretion charge and any changes in the amount or timing of the underlying future cash flows are recognized as an additional asset retirement cost. |
Foreign currency translation | Foreign currency translation The functional currency of the Company and its subsidiaries is Canadian Dollars. Transactions denominated in foreign currencies are recorded at the rate of exchange on the transaction date. Monetary assets and liabilities, denominated in foreign currencies, are translated into Canadian Dollars at the rate of exchange prevailing at the balance sheet date. Foreign exchange gains and losses are included in the determination of earnings. |
Fair value measurement | Fair value measurement Fair value measurements are categorized using a valuation hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs into three broad levels. Fair values included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values included in Level 2 include valuations using inputs based on observable market data, either directly or indirectly other than the quoted prices. Level 3 valuations are based on inputs that are not based on observable market data. The classification of a fair value within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. |
Derivative financial instruments | Derivative financial instruments The Company has used derivative financial instruments to manage financial risks from fluctuations in exchange rates. Such instruments were only used for risk management purposes. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. |
Income taxes | Income taxes The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period of enactment. A valuation allowance is recorded against any deferred tax asset if it is more likely than not that the asset will not be realized. s) Tax positions The Company recognizes the effect of income tax positions only if those positions are more likely than not (greater than 50% ) of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. The Company accrues interest and penalties for uncertain tax positions in the period in which these uncertainties are identified. Interest and penalties are included in “General and administrative expenses” in the Consolidated Statements of Operations. |
Stock-based compensation | Stock-based compensation The Company has a Share Option Plan which is described in note 21 (b). The Company accounts for all stock-based compensation payments that are settled by the issuance of equity instruments at fair value. Compensation cost is measured using the Black-Scholes model at the grant date and is expensed on a straight-line basis over the award’s vesting period, with a corresponding increase to additional paid-in capital. Upon exercise of a stock option, share capital is recorded at the sum of proceeds received and the related amount of additional paid-in capital. The Company has a Restricted Share Unit (“RSU”) Plan which is described in note 21 (c). RSUs are generally granted effective July 1 of each fiscal year with respect to services to be provided in that fiscal year and the following two fiscal years. The RSUs generally vest at the end of the three -year term. The Company settles all RSUs issued after February 19, 2014 with common shares purchased on the open market through a trust arrangement ("equity classified RSUs"). The Company settled RSUs issued prior to February 19, 2014 with cash ("liability classified RSUs"). Compensation expense on liability classified RSUs was calculated based on the number of vested RSUs multiplied by the fair value of each RSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value was to be determined. The Company recognized compensation cost over the three -year term of the liability classified RSU with any changes in fair value recognized in general and administrative expenses on the Consolidated Statements of Operations. At December 31, 2017 , there were no unrecognized compensation costs related to non-vested share-based payment arrangements under the liability classified RSU plan. The Company recognizes compensation cost over the three -year term of the equity classified RSUs in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. When dividends are paid on common shares, additional dividend equivalent RSUs are granted to all RSU holders as of the dividend payment date. The number of additional RSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding RSUs, divided by the fair market value of the Company's common shares on the dividend payment date. Such additional RSUs are granted subject to the same service criteria as the underlying RSUs. The Company has a Performance Restricted Share Unit ("PSU") plan which is described in note 21 (d). The PSUs vest at the end of a three -year term and are subject to the performance criteria approved by the Human Resources and Compensation Committee at the date of the grant. Such performance criterion includes the passage of time and is based upon the improvement of total shareholder return ("TSR") as compared to a defined company Canadian peer group. TSR is calculated using the fair market values of voting common shares at the grant date, the fair market value of voting common shares at the vesting date and the total dividends declared and paid throughout the vesting period. The grants are measured at fair value on the grant date using the Monte Carlo model. At the maturity date, the Human Resources and Compensation Committee will assess actual performance against the performance criteria and determine the number of PSUs that have been earned. The Company intends to settle all PSUs with common shares purchased on the open market through a trust arrangement. The Company recognizes compensation cost over the three -year term of the PSU in the Consolidated Statement of Operations, with a corresponding increase to additional paid-in capital. The Company has a Deferred Stock Unit (“DSU”) Plan which is described in note 21 (e). The DSU plan enables directors and executives to receive all or a portion of their annual fee or annual executive bonus compensation in the form of DSUs and are settled in cash. Compensation expense is calculated based on the number of DSUs multiplied by the fair market value of each DSU as determined by the volume weighted average trading price of the Company’s common shares for the thirty trading days immediately preceding the day on which the fair market value is to be determined, with any changes in fair value recognized in general and administrative expenses on the Consolidated Statements of Operations. Compensation costs related to DSUs are recognized in full upon the grant date as the units vest immediately. When dividends are paid on common shares, additional dividend equivalent DSUs are granted to all DSU holders as of the dividend payment date. The number of additional DSUs to be granted is determined by multiplying the dividend payment per common share by the number of outstanding DSUs, divided by the fair market value of the Company's common shares on the dividend payment date. Such additional DSUs are granted subject to the same service criteria as the underlying DSUs. As stock-based compensation expense recognized in the Consolidated Statements of Earnings is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised, in subsequent periods if actual forfeitures differ from those estimates. |
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the year (see note 17 (b)). Diluted net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares outstanding during the year, adjusted for dilutive share amounts. The diluted per share amounts are calculated using the treasury stock method and the if-converted method. The treasury stock method increases the diluted weighted average shares outstanding to include additional shares from the assumed exercise of equity settled stock options, if dilutive. The number of additional shares determined using the treasury stock method is calculated by assuming outstanding in-the-money stock options were exercised and the proceeds from such exercises, including any unamortized stock-based compensation cost, were used to acquire shares of common stock at the average market price during the year. The if-converted method increases the diluted weighted average shares outstanding to include additional shares from the assumed conversion of convertible debentures, if dilutive. The number of additional shares is calculated by assuming the dilutive convertible shares would be outstanding for the entire period, or at the date of issuance, if later. If the convertible debentures are dilutive, the after tax interest expense related to the convertible debentures for the entire period, or from the date of issuance if later, is added back to the net income (loss). |
Leases | Leases Leases entered into by the Company in which substantially all the benefits and risks of ownership are transferred to the Company are recorded as obligations under capital leases and under the corresponding category of property, plant and equipment. Obligations under capital leases reflect the present value of future lease payments, discounted at an appropriate interest rate, and are reduced by rental payments net of imputed interest. All other leases are classified as operating leases and leasing costs, including any rent holidays, leasehold incentives, and rent concessions, are amortized on a straight-line basis over the lease term. Certain operating lease and rental agreements provide a maximum operating hour usage limit, above which the Company will be required to pay for the over limit usage as a contingent rent expense. These contingent expenses are recognized when the likelihood of exceeding the usage limit is considered probable and are due at the end of the lease term or rental period. The contingent rental expenses are included in “Equipment costs” in the Consolidated Statements of Operations. |
Deferred financing costs | Deferred financing costs Underwriting, legal and other direct costs incurred in connection with the issuance of debt are presented as deferred financing costs. Deferred financing costs related to the issuance of the Convertible Debentures and the Previous Term Loans are included within liabilities on the Consolidated Balance Sheets and are amortized using the effective interest rate method over the term to maturity. Deferred financing costs related to the Revolver, and the Previous Revolver, are included within other assets on the Consolidated Balance Sheets and are amortized ratably over the term of the Credit Facility. |
New accounting pronouncements | Accounting pronouncements recently adopted a) Inventory In July 2015, the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This accounting standard simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value from the lower of cost or market. This standard was adopted January 1, 2017 and the adoption did not have a material effect on the Company's consolidated financial statements. b) Accounting Changes and Error Corrections In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error corrections (Topic 250) and investments - Equity Method and Joint ventures (Topic 323) to enhance disclosures of new accounting standards, including a comparison to current accounting policies, and the progress status of implementation.This ASU applies to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606); ASU No. 2016-02, Leases (Topic 842); and ASU 2016-03, Financial Instruments - Credit Losses (Topic 326). This standard was effective upon issuance and has been adopted by the Company. Recent accounting pronouncements not yet adopted a) Revenue from Contracts with Customers In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued several related ASUs which provide guidance that requires an entity to recognize revenue in accordance with a five step model. Topic 606 will replace nearly all existing US GAAP revenue guidance, including industry-specific requirements, with a single comprehensive standard and significantly expands the disclosure requirements for revenue arrangements. The model is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the total consideration to which the entity expects to be entitled, during the term of the contract, in exchange for those goods or services. The new standard, as amended, will be effective for the Company for interim and annual reporting periods commencing January 1, 2018. The standard allows the use of either a full retrospective approach with restatement of all prior periods presented, or a modified retrospective approach with a cumulative effect adjustment as of the date of initial application. The Company will adopt Topic 606 applying the modified retrospective approach to only contracts that were not completed contracts with the cumulative effect adjustment recorded to equity at January 1, 2018, subject to the allowable and elected practical expedient. To date, the Company has assessed Topic 606 to identify accounting and disclosure gaps specific to the work performed by the Company, determined the new data requirements to identify information gaps, and systems and/or reports that require modifications, considered changes to chart of accounts to facilitate entering and tracking of required information, and mapped processes to determine required changes to policies, procedures, and controls. The Company currently recognizes revenue on its construction contracts, which comprise the majority of overall revenue, as costs are incurred on undefined scope work and using a percentage-of-completion method for defined scope work. With respect to the undefined scope work, revenue recognition under the new standard will be materially the same as revenue recognition under the existing standard for undefined scope work. With respect to revenue recognized using a percentage-of-completion method for defined scope work, the Company uses the input method of costs incurred to measure progress towards completion as that most accurately depicts the Company’s performance. As this method is permitted under the new standard, the Company will continue in its application. However, there are certain areas where the Company is quantifying the impact, if any, on its contracts that are in progress for the cumulative effect adjustment as the timing of revenue recognition may change under the new standard. These areas include identifying separate performance obligations, assessing contract modification including claims revenue, estimating variable consideration including contract incentives and penalties, and considering treatment of contract costs to obtain and fulfill a contract. There will be no changes to the treatment of cash flows and cash will continue to be collected in line with contractual terms. The Company expects to add significant disclosures based on the prescribed requirements. These new disclosures will include information regarding the significant judgments used in evaluating when and how revenues are recognized and information related to contract assets and deferred revenues. In addition, the new guidance requires that the Company’s revenue recognition policy disclosure includes additional detail regarding the various performance obligations and the nature, amount, timing and estimates of revenues and cash flows generated from contracts with customers. The Company is drafting the relevant disclosures to reflect the requirements of the new standard and expects to apply the practical expedient to not disclose any information about remaining performance obligations that have original expected durations of one year or less. b) Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to supersede the current leases accounting standard (Topic 840). The main difference between the new standard and the current standard is the requirement that lessees recognize a lease liability and a right-of-use asset for leases currently classified as operating leases with a term longer than twelve months. Lessor accounting remains largely unchanged. Additionally, the standard requires that for a sale to occur in a sale-leaseback transaction, the transfer of assets must meet the requirements for a sale under Topic 606. The standard requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company continues to evaluate the impact of adopting the standard on its financial statements and disclosure through its change management plan which guides the adoption of the standard. The Company has compiled an inventory of all leases and is analyzing individual contracts or groups of contracts to identify any significant differences and the impact on lease transactions as a result of adopting the new standard. Through this process, the Company will also quantify the impact, on in-scope prior period transactions as well as assess the Company’s policies, practices, procedures, controls, and systems for changes necessary to process and compile the information to meet the requirements of the new standard. The new standard will be effective for interim and annual reporting periods commencing January 1, 2019, with early adoption permitted. c) Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230: Classification of Certain Cash Receipts and Cash Payments). This accounting standard eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayments or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. This ASU will be effective commencing January 1, 2018, with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. d) Stock-Based Compensation In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718: Scope of Modification Accounting). This accounting standard update clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This ASU will be effective commencing January 1, 2018, with early adoption permitted. The Company is assessing the impact the adoption of this standard will have on its consolidated financial statements. |
Significant accounting polici36
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of 100% owned subsidiaries of NACHI | These consolidated financial statements include the accounts of the Company, its wholly-owned, Canadian incorporated subsidiaries, NACGI, North American Fleet Company Ltd., North American Construction Holdings Inc. (“NACHI”) and NACG Properties Inc., and the following 100% owned, Canadian incorporated subsidiaries of NACHI as of December 31, 2017: • North American Engineering Inc. • North American Site Development Ltd. • North American Enterprises Ltd. • North American Maintenance Ltd. • North American Mining Inc. • North American Tailings and Environmental Ltd. • North American Services Inc. • 1753514 Alberta Ltd. |
Schedule of depreciation of property, plant and equipment | Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 5,000 - 70,000 hours Major component parts in use Units of production 1,000 - 36,000 hours Other equipment Straight-line 5 – 10 years Licensed motor vehicles Straight-line 5 – 10 years Office and computer equipment Straight-line 4 years Buildings Straight-line 10 – 25 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term December 31, 2017 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 196,045 $ 77,726 $ 118,319 Major component parts in use 72,448 45,694 26,754 Other equipment 31,923 18,400 13,523 Licensed motor vehicles 18,298 14,888 3,410 Office and computer equipment 10,157 9,468 689 Land 7,168 — 7,168 Buildings 2,547 2,482 65 338,586 168,658 169,928 Assets under capital lease Heavy equipment 69,657 28,613 41,044 Major component parts in use 85,015 21,247 63,768 Other equipment 558 543 15 Licensed motor vehicles 5,129 1,242 3,887 Office and computer equipment 23 17 6 160,382 51,662 108,720 Total property, plant and equipment $ 498,968 $ 220,320 $ 278,648 December 31, 2016 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 188,785 $ 68,487 $ 120,298 Major component parts in use 64,229 49,673 14,556 Other equipment 31,670 16,335 15,335 Licensed motor vehicles 20,353 18,258 2,095 Office and computer equipment 9,769 9,112 657 Buildings 2,523 2,487 36 317,329 164,352 152,977 Assets under capital lease Heavy equipment 84,527 21,848 62,679 Major component parts in use 50,882 17,233 33,649 Other equipment 5,178 611 4,567 Licensed motor vehicles 3,373 805 2,568 Office and computer equipment 23 11 12 143,983 40,508 103,475 Total property, plant and equipment $ 461,312 $ 204,860 $ 256,452 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, 2017 December 31, 2016 Trade $ 45,158 $ 38,746 Holdbacks 558 528 Other 1,512 806 $ 47,228 $ 40,080 |
Costs incurred and estimated 38
Costs incurred and estimated earnings net of billings on uncompleted contracts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contractors [Abstract] | |
Schedule of costs in excess of billings on uncompleted contracts | December 31, 2017 December 31, 2016 Costs incurred and estimated earnings on uncompleted contracts $ 199,863 $ 208,030 Less billings to date (179,800 ) (193,136 ) $ 20,063 $ 14,894 Costs incurred and estimated earnings net of billings on uncompleted contracts is presented in the Consolidated Balance Sheets under the following captions: December 31, 2017 December 31, 2016 Unbilled revenue $ 21,572 $ 15,965 Billings in excess of costs incurred and estimated earnings on uncompleted contracts (824 ) (1,071 ) $ 20,748 $ 14,894 |
Prepaid expenses and deposits (
Prepaid expenses and deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and deposits | December 31, 2017 December 31, 2016 Prepaid insurance and deposits $ 844 $ 565 Current portion of prepaid lease payments 1,054 986 $ 1,898 $ 1,551 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 5,000 - 70,000 hours Major component parts in use Units of production 1,000 - 36,000 hours Other equipment Straight-line 5 – 10 years Licensed motor vehicles Straight-line 5 – 10 years Office and computer equipment Straight-line 4 years Buildings Straight-line 10 – 25 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term December 31, 2017 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 196,045 $ 77,726 $ 118,319 Major component parts in use 72,448 45,694 26,754 Other equipment 31,923 18,400 13,523 Licensed motor vehicles 18,298 14,888 3,410 Office and computer equipment 10,157 9,468 689 Land 7,168 — 7,168 Buildings 2,547 2,482 65 338,586 168,658 169,928 Assets under capital lease Heavy equipment 69,657 28,613 41,044 Major component parts in use 85,015 21,247 63,768 Other equipment 558 543 15 Licensed motor vehicles 5,129 1,242 3,887 Office and computer equipment 23 17 6 160,382 51,662 108,720 Total property, plant and equipment $ 498,968 $ 220,320 $ 278,648 December 31, 2016 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 188,785 $ 68,487 $ 120,298 Major component parts in use 64,229 49,673 14,556 Other equipment 31,670 16,335 15,335 Licensed motor vehicles 20,353 18,258 2,095 Office and computer equipment 9,769 9,112 657 Buildings 2,523 2,487 36 317,329 164,352 152,977 Assets under capital lease Heavy equipment 84,527 21,848 62,679 Major component parts in use 50,882 17,233 33,649 Other equipment 5,178 611 4,567 Licensed motor vehicles 3,373 805 2,568 Office and computer equipment 23 11 12 143,983 40,508 103,475 Total property, plant and equipment $ 461,312 $ 204,860 $ 256,452 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets are as follows: December 31, 2017 December 31, 2016 Long term prepaid lease payments (note 7) $ 1,779 $ 1,839 Intangible assets (note 10(b)) 938 1,790 Deferred financing costs (note 10(c)) 707 320 Deferred lease inducement asset (note 10(d)) 784 927 Loan to partnership (note 24) 969 — $ 5,177 $ 4,876 |
Schedule of intangible assets | December 31, 2017 December 31, 2016 Cost $ 18,188 $ 18,122 Accumulated amortization 17,250 16,332 Net book value $ 938 $ 1,790 |
Schedule of estimated amortization expense for future years | The estimated amortization expense for future years is as follows: For the year ending December 31, 2018 $ 464 2019 266 2020 149 2021 59 $ 938 |
Schedule of deferred finance costs | December 31, 2017 December 31, 2016 Cost $ 1,390 $ 550 Accumulated amortization 683 230 $ 707 $ 320 |
Schedule of deferred lease inducement assets | December 31, 2017 December 31, 2016 Balance, beginning of year $ 927 $ 1,070 Amortization of deferred lease inducements (143 ) (143 ) Balance, end of year $ 784 $ 927 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of differences between tax provision and Federal and Provincial statutory income taxes | Income tax provision differs from the amount that would be computed by applying the Federal and Provincial statutory income tax rates to income before income taxes. The reasons for the differences are as follows: Year ended December 31, 2017 2016 Income (loss) before income taxes $ 6,468 $ (494 ) Tax rate 27.00 % 27.00 % Expected expense (benefit) $ 1,746 $ (133 ) (Decrease) increase related to: Income tax adjustments and reassessments 30 246 Non taxable portion of capital gains (672 ) (465 ) Stock-based compensation 88 158 Other 12 145 Income tax expense (benefit) $ 1,204 $ (49 ) |
Schedule of classification of income tax benefit (expense) | Classified as: Year ended December 31, 2017 2016 Deferred income tax expense (benefit) 1,204 (49 ) |
Schedule of deferred tax assets and liabilities | The deferred tax assets and liabilities are summarized below: December 31, 2017 December 31, 2016 Deferred tax assets: Tax credit carryforwards $ 18,619 $ 15,225 Deferred financing costs 52 355 Billings in excess of costs on uncompleted contracts 222 289 Capital lease obligations 17,961 16,578 Stock-based compensation 2,985 2,672 Other 2,357 1,273 Subtotal $ 42,196 $ 36,392 Less: valuation allowance (1,035 ) (1,035 ) $ 41,161 $ 35,357 Deferred tax liabilities: Unbilled revenue $ 5,231 $ 3,381 Assets held for sale 1,523 67 Accounts receivable – holdbacks 72 143 Property, plant and equipment 61,953 58,180 $ 68,779 $ 61,771 Net deferred income tax liability $ 27,618 $ 26,414 Classified as: December 31, 2017 December 31, 2016 Deferred tax asset $ 10,539 $ 13,807 Deferred tax liability (38,157 ) (40,221 ) $ (27,618 ) $ (26,414 ) |
Schedule of non-capital losses for income tax purposes | At December 31, 2017 , the Company has a deferred tax asset of $ 17,584 resulting from non-capital net operating loss income tax carryforwards of $65,126 , which expire as follows: December 31, 2017 2025 $ 2 2026 151 2027 128 2028 — 2029 — 2030 — 2031 604 2032 9,354 2033 13,829 2034 8,317 2035 — 2036 5,691 2037 27,050 $ 65,126 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | December 31, 2017 December 31, 2016 Accrued interest payable $ 714 $ 85 Payroll liabilities 8,828 7,733 Liabilities related to equipment leases 219 123 Current portion of deferred gain on sale-leaseback (note 16(a)) 1,445 586 Dividends payable (note 17(d)) 510 569 Income and other taxes payable 2,007 2,079 Liabilities related to tire disposal 156 — $ 13,879 $ 11,175 |
Long term debt (Tables)
Long term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | December 31, 2017 December 31, 2016 Cost $ 2,377 $ 235 Accumulated amortization 442 98 $ 1,935 $ 137 Long term debt amounts are as follows: Current: December 31, 2017 December 31, 2016 Credit facilities (note 13(b)) $ — $ 8,246 Less: deferred financing costs — (77 ) $ — $ 8,169 Long term: December 31, 2017 December 31, 2016 Credit facilities (note 13(b)) $ 32,000 $ 31,326 Convertible Debentures (note 13(d)) 40,000 — Less: deferred financing costs (1,935 ) (60 ) $ 70,065 $ 31,266 |
Schedule of line of credit facilities | Credit facilities December 31, 2017 December 31, 2016 Term Loan $ — $ 28,572 Revolver 32,000 11,000 Total credit facilities 32,000 39,572 Less: current portion — (8,246 ) $ 32,000 $ 31,326 |
Capital lease obligations (Tabl
Capital lease obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of future minimum lease payments due under capital leases | The minimum lease payments due in each of the next five fiscal years are as follows: 2018 $ 31,530 2019 20,696 2020 12,182 2021 4,892 2022 2,192 Subtotal: $ 71,492 Less: amount representing interest (at rates ranging from 2.75% to 7.51%) (4,523 ) Carrying amount of minimum lease payments $ 66,969 Less: current portion (29,136 ) Long term portion $ 37,833 |
Financial instruments and ris46
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments with carrying amounts that differ from fair values | Financial instruments with carrying amounts that differ from their fair values are as follows: December 31, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Fair Carrying Fair Capital lease obligations (i) Level 2 $ 66,969 $ 61,872 $ 61,400 $ 57,741 Convertible Debentures (ii) Level 1 40,000 38,700 — — (i) The fair values of amounts due under capital leases are based on management estimates which are determined by discounting cash flows required under the instruments at the interest rates currently estimated to be available for instruments with similar terms. (ii) The fair value of the Convertible Debentures is based upon the period end closing market price. |
Schedule of non-financial assets measured at fair value on a non-recurring basis | Non-financial assets measured at estimated fair market value on a non-recurring basis as at December 31, 2017 and 2016 in the financial statements are summarized below: December 31, 2017 December 31, 2016 Carrying Amount Change in Fair Value Carrying Amount Change in Fair Value Assets held for sale $ 5,642 $ (72 ) $ 247 $ (1,556 ) |
Concentration Risk [Line Items] | |
Schedule of maximum exposure to credit risk for accounts receivable and unbilled revenue | The Company’s maximum exposure to credit risk for accounts receivable and unbilled revenue is as follows: December 31, 2017 December 31, 2016 Trade accounts receivables $ 45,716 $ 39,274 Other receivables 1,512 806 Total accounts receivable $ 47,228 $ 40,080 Unbilled revenue 21,572 15,965 Total $ 68,800 $ 56,045 |
Schedule of trade receivables aging | As at December 31, 2017 and December 31, 2016 , trade receivables are aged as follows: December 31, 2017 December 31, 2016 Not past due $ 42,882 $ 34,263 Past due 1-30 days 2,566 2,956 Past due 31-60 days — 2,000 More than 61 days 268 55 Total $ 45,716 $ 39,274 |
Total revenues | |
Concentration Risk [Line Items] | |
Schedule of major customers | The following customers accounted for 10% or more of total revenues: Year ended December 31, 2017 2016 Customer A 44 % 47 % Customer B 26 % 25 % Customer C 17 % 21 % |
Accounts receivable and unbilled revenue | |
Concentration Risk [Line Items] | |
Schedule of major customers | At December 31, 2017 and December 31, 2016 , the following customers represented 10% or more of accounts receivable and unbilled revenue: December 31, 2017 December 31, 2016 Customer 1 42 % 42 % Customer 2 20 % 22 % Customer 3 10 % 7 % Customer 4 10 % 13 % Customer 5 2 % 13 % |
Other long term obligations (Ta
Other long term obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other long term obligations | Other long term obligations are as follows: December 31, 2017 December 31, 2016 Deferred lease inducements liability (note 16(b)) $ 10 $ 38 Asset retirement obligation (note 16(c)) 744 678 Directors' deferred stock unit plan (note 21(e)) 5,672 4,945 Deferred gain on sale-leaseback (note 16(d)) 7,654 3,199 $ 14,080 $ 8,860 Less current portion of: Deferred gain on sale-leaseback (note 16(d)) (1,445 ) (586 ) $ 12,635 $ 8,274 |
Schedule of changes in deferred lease inducements | December 31, 2017 December 31, 2016 Balance, beginning of year $ 38 $ 145 Amortization of deferred lease inducements (28 ) (107 ) Balance, end of year $ 10 $ 38 |
Schedule of changes in asset retirement obligation | The following table presents a continuity of the liability for the asset retirement obligation: December 31, 2017 December 31, 2016 Balance, beginning of year $ 678 $ 617 Accretion expense 66 61 Balance, end of year $ 744 $ 678 |
Schedule of deferred lease inducement assets | December 31, 2017 December 31, 2016 Balance, beginning of year $ 3,199 $ 780 Addition 5,155 2,792 Amortization of deferred gain on sale-leaseback (700 ) (373 ) Balance, end of year $ 7,654 $ 3,199 |
Shares (Tables)
Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of common shares issued and outstanding | Issued and outstanding: Voting common shares Treasury shares Common shares outstanding, net of treasury shares Issued and outstanding at December 31, 2015 33,150,281 (1,256,803 ) 31,893,478 Issued upon exercise of stock options (note 21(b)) 102,040 — 102,040 Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 21(c(i)) and 21(d)) — (1,043,998 ) (1,043,998 ) Settlement of certain equity classified stock-based compensation — 87,554 87,554 Retired through Share Purchase Program (note 17(c)) (2,733,414 ) — (2,733,414 ) Issued and outstanding at December 31, 2016 30,518,907 (2,213,247 ) 28,305,660 Issued upon exercise of stock options (note 21(b)) 176,800 — 176,800 Purchase of treasury shares for settlement of certain equity classified stock-based compensation (note 21(c(i)) and 21(d)) — (758,271 ) (758,271 ) Settlement of certain equity classified stock-based compensation — 353,592 353,592 Retired through Share Purchase Programs (note 17(c)) (2,625,557 ) — (2,625,557 ) Issued and outstanding at December 31, 2017 28,070,150 (2,617,926 ) 25,452,224 |
Schedule of net (loss) income per share | Year ended December 31, 2017 2016 Net income (loss) available to common shareholders $ 5,264 $ (445 ) Weighted average number of common shares 26,697,066 29,965,899 Weighted average of effects: Dilutive effect of treasury shares 2,622,957 — Dilutive effect of stock options 285,703 — Weighted average number of diluted common shares 29,605,726 29,965,899 Basic net income (loss) per share $ 0.20 $ (0.01 ) Diluted net income (loss) per share $ 0.18 $ (0.01 ) |
Schedule of shares repurchased | The Company engaged in the following normal course issuer bids ("NCIBs") during the years ended December 31, 2016 and December 31, 2017: Commencement date Facilities Maximum number of shares to be purchased Actual number of shares purchased and subsequently cancelled Reduction to common shares Increase to additional paid in capital March 21, 2016 NYSE 1,657,514 1,657,514 $ 14,121 $ 9,021 August 9, 2016 TSX 1,075,968 1,075,900 9,237 5,133 Total during the year ended December 31, 2016 2,733,482 2,733,414 $ 23,358 $ 14,154 First phase: amended NCIB (i) TSX 819,395 819,395 $ 7,057 $ 1,576 Second phase: amended NCIB (ii) TSX 838,119 663,400 5,706 1,908 August 14, 2017 (iii)(iv) NYSE, TSX 2,424,333 1,142,762 9,810 4,119 Total during the year ended December 31, 2017 4,081,847 2,625,557 $ 22,573 $ 7,603 (i) On March 28, 2017 the Company announced an increase to the maximum number of shares to be purchased relating to the NCIB that commenced on August 9, 2016 from the original 1,075,968 to 1,895,363 as of April 1, 2017. (ii) On May 25, 2017 the Company announced a further increase to the maximum number of shares to be purchased relating to the NCIB that commenced on August 9, 2016 from the amended 1,895,363 to 2,733,482 as of June 1, 2017. (iii) This NCIB is ongoing. All other NCIBs have reached expiration. (iv) In order to comply with relevant securities laws, the Company can purchase a maximum of 1,460,089 of the shares on the NYSE, which represents 5% of the issued and outstanding common shares. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating leases | The annual future minimum operating lease payments for premises for the next five years are as follows: For the year ending December 31, 2018 $ 3,248 2019 2,238 2020 2,348 2021 2,374 2022 2,318 $ 12,526 |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest Expense [Abstract] | |
Schedule of interest expense | Year ended December 31, 2017 2016 Interest on capital lease obligations $ 3,023 $ 2,836 Interest on credit facilities 1,507 1,593 Interest on Series 1 Debentures — 977 Interest on Convertible Debentures 1,760 — Amortization of deferred financing costs (note 10(c) and note 13(e)) 797 572 Interest on long term debt $ 7,087 $ 5,978 Other interest income (144 ) (194 ) $ 6,943 $ 5,784 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock-based compensation expenses included in general and administrative expenses | Stock-based compensation expenses included in general and administrative expenses are as follows: Year ended December 31, 2017 2016 Share option plan (note 21(b)) $ 326 $ 587 Liability classified restricted share unit plan (note 21(c(i))) — 52 Equity classified restricted share unit plan (note 21(c(ii))) 1,293 1,384 Equity performance restricted share unit plan (note 21(d)) 1,306 820 Liability classified deferred stock unit plan (note 21(e)) 1,070 3,187 $ 3,995 $ 6,030 |
Schedule of stock options activity | Number of options Weighted average Outstanding at December 31, 2015 1,448,000 5.33 Exercised (i) (102,040 ) 2.77 Forfeited (169,880 ) 5.31 Outstanding at December 31, 2016 1,176,080 5.56 Exercised (i) (176,800 ) 3.26 Forfeited (85,740 ) 12.36 Outstanding at December 31, 2017 913,540 5.36 (i) All stock options exercised resulted in new common shares being issued (note 17(a)) . |
Summary of information about stock options outstanding | The following table summarizes information about stock options outstanding at December 31, 2017 : Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted Weighted $2.75 187,420 4.3 years $ 2.75 187,420 4.3 years $ 2.75 $2.79 300,000 4.5 years $ 2.79 300,000 4.5 years $ 2.79 $3.69 25,800 0.9 years $ 3.69 25,800 0.9 years $ 3.69 $5.91 132,000 6.0 years $ 5.91 105,600 6.0 years $ 5.91 $6.56 70,780 3.9 years $ 6.56 70,780 3.9 years $ 6.56 $8.28 10,000 1.5 years $ 8.28 10,000 1.5 years $ 8.28 $8.58 30,000 2.7 years $ 8.58 30,000 2.7 years $ 8.58 $9.33 55,780 2.1 years $ 9.33 55,780 2.1 years $ 9.33 $10.13 51,760 3.0 years $ 10.13 51,760 3.0 years $ 10.13 $16.46 50,000 0.3 years $ 16.46 50,000 0.3 years $ 16.46 913,540 4.0 years $ 5.36 887,140 3.9 years $ 5.35 |
Schedule of performance restricted share units | Number of units Weighted average exercise price Outstanding at December 31, 2015 423,592 4.86 Granted 343,706 4.97 Forfeited (27,998 ) 4.52 Outstanding at December 31, 2016 739,300 4.84 Granted 248,824 5.98 Vested (69,949 ) 8.57 Forfeited (21,542 ) 4.05 Outstanding at December 31, 2017 896,633 4.81 |
Schedule of assumptions used in estimate of fair value | The Company estimated the fair value of the PSUs granted during the years ended December 31, 2017 and 2016 using a Monte Carlo simulation with the following assumptions: 2017 2016 Risk-free interest rate 1.17 % 0.52 % Expected volatility 46.47 % 43.30 % |
Schedule of stock plan activity | Number of units Outstanding at December 31, 2015 928,874 Granted 171,980 Redeemed (158,917 ) Outstanding at December 31, 2016 941,937 Granted 114,895 Redeemed (65,249 ) Outstanding at December 31, 2017 991,583 |
Liability classified restricted share unit plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted share unit plan activity | Liability classified restricted share unit plan Number of units Outstanding at December 31, 2015 290,790 Vested (290,790 ) Outstanding at December 31, 2016 and 2017 — |
Equity classified restricted share unit plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted share unit plan activity | Equity classified restricted share unit plan Number of units Weighted average exercise price Outstanding at December 31, 2015 774,156 4.45 Granted 501,523 3.78 Vested (87,580 ) 3.51 Forfeited (64,124 ) 3.50 Outstanding at December 31, 2016 1,123,975 4.20 Granted 355,292 6.02 Vested (259,860 ) 6.24 Forfeited (29,474 ) 4.00 Outstanding at December 31, 2017 1,189,933 4.22 |
Other information (Tables)
Other information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Year ended December 31, 2017 2016 Cash paid during the year for: Interest $ 5,615 $ 5,895 Cash received during the year for: Interest 162 194 |
Schedule of non-cash transactions | Year ended December 31, 2017 2016 Non-cash transactions: Addition of property, plant and equipment by means of capital leases 34,730 23,490 Acquisition of property, plant and equipment related to the initial investment in the partnership 2,581 — Increase in capital lease obligations related to the initial investment in the partnership 800 — Increase in long term debt related to the initial investment in the partnership 637 — Reclass from property, plant and equipment to assets held for sale (6,869 ) (1,374 ) Non-cash working capital exclusions: Increase in inventory related to the initial partnership investment (29 ) — Increase in prepaid expenses related to the initial investment in the partnership (4 ) — Decrease in inventory related to a non-monetary transaction — (575 ) Increase in accrued liabilities related to the current portion of the deferred gain on sale-leaseback 859 365 Net decrease in accrued liabilities related to current portion of RSU liability — (671 ) Net (decrease) increase in accrued liabilities related to dividend payable (59 ) 569 |
Schedule of net change in non-cash working capital | The table below represents the cash (used in) provided by non-cash working capital: Year ended December 31, 2017 2016 Operating activities: Accounts receivable $ (7,148 ) $ (15,344 ) Unbilled revenue (5,607 ) 1,600 Inventories (1,288 ) (1,437 ) Prepaid expenses and deposits (283 ) 126 Accounts payable 5,640 4,517 Accrued liabilities 1,904 4,144 Billings in excess of costs incurred and estimated earnings on uncompleted contracts (247 ) 614 $ (7,029 ) $ (5,780 ) |
Claims revenue (Tables)
Claims revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contractors [Abstract] | |
Schedule of claims revenue | Year ended December 31, 2017 2016 Claims revenue recognized $ 1,168 $ 1,171 The table below represents the classification of uncollected claims on the balance sheet: December 31, 2017 December 31, 2016 Accounts receivable $ 358 $ 1,171 Unbilled revenue 7,662 7,088 $ 8,020 $ 8,259 |
Investment in partnership (Tabl
Investment in partnership (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Proportionate share of unincorporated partnership | At inception of the partnership, assets and liabilities were proportionately recognized within the Company's consolidated financial statements at 49% as follows: Assets Cash $ 1,131 Inventory 29 Prepaid expenses 4 Property, plant and equipment 2,581 Total assets $ 3,745 Liabilities Capital lease obligation $ 800 Long-term debt 637 Total liabilities $ 1,437 Total consideration paid $ 2,308 The financial data for the Company's 49% interest included in the consolidated financial statements is summarized as follows: Balance Sheet December 31, December 31, Assets Current assets $ 1,868 $ — Non-current assets 2,275 — Total assets $ 4,143 $ — Liabilities Current liabilities $ 1,094 $ — Long-term liabilities 1,141 — Total liabilities $ 2,235 $ — Net Assets $ 1,908 $ — Statement of Operations and Comprehensive Loss Year ended December 31, 2017 2016 Revenues $ 4,310 $ — Gross profit (i) 3,908 — Loss before taxes (401 ) — Net loss and comprehensive loss(ii) (401 ) — (i) Gross profit is defined as revenue less: project costs; equipment costs; and depreciation. (ii) For income tax purposes, all income attributed to the partnership agreement is allocated to the partners pro-rata in accordance with their respective interest. |
Significant accounting polici55
Significant accounting policies - Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Term of contract (less than one year) | 1 year |
Dene North Site Services | |
Property, Plant and Equipment [Line Items] | |
Undivided ownership interest, percentage | 49.00% |
Significant accounting polici56
Significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Heavy equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5000 hours |
Heavy equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 70000 hours |
Major component parts in use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 1000 hours |
Major component parts in use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 36000 hours |
Other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Licensed motor vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Licensed motor vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Office and computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 4 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Significant accounting polici57
Significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Capitalized computer software and development costs | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 4 years |
Significant accounting polici58
Significant accounting policies - Stock-based compensation (Details) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of trading days used to determine weighted average trading price of common shares | 30 days | |
Restricted Share Unit (RSU) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award service period | 2 years | |
Award vesting period | 3 years | |
Compensation expense recognition period | 3 years | |
Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Compensation expense recognition period | 3 years | |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses | CAD 3,995,000 | CAD 6,030,000 |
General and administrative expenses | Liability classified restricted share unit plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses | CAD 0 | CAD 52,000 |
Accounts receivable (Details)
Accounts receivable (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Trade | CAD 45,158 | CAD 38,746 |
Holdbacks | 558 | 528 |
Other | 1,512 | 806 |
Total accounts receivable | CAD 47,228 | CAD 40,080 |
Accounts receivable – holdback percentage | 10.00% |
Costs incurred and estimated 60
Costs incurred and estimated earnings net of billings on uncompleted contracts (Details) - CAD | Dec. 31, 2017 | Dec. 31, 2016 |
Costs in excess of billings [Abstract] | ||
Costs incurred and estimated earnings on uncompleted contracts | CAD 199,863,000 | CAD 208,030,000 |
Less billings to date | (179,800,000) | (193,136,000) |
Costs in excess of billings | 20,063,000 | 14,894,000 |
Contracts receivable [Abstract] | ||
Unbilled revenue | 21,572,000 | 15,965,000 |
Billings in excess of costs incurred and estimated earnings on uncompleted contracts | (824,000) | (1,071,000) |
Unbilled contracts receivable | 20,748,000 | 14,894,000 |
Non-construction activities | ||
Contracts receivable [Abstract] | ||
Unbilled revenue | CAD 685,000 | CAD 0 |
Prepaid expenses and deposits61
Prepaid expenses and deposits (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current: | ||
Prepaid insurance and deposits | CAD 844 | CAD 565 |
Current portion of prepaid lease payments | 1,054 | 986 |
Prepaid expenses and deposits | CAD 1,898 | CAD 1,551 |
Assets held for sale (Details)
Assets held for sale (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Assets held for sale | CAD 5,642 | CAD 247 |
Gain on disposal of assets held for sale | 166 | 374 |
Disposal group, held-for-sale, not discontinued operations | ||
Property, Plant and Equipment [Line Items] | ||
Assets held for sale | 5,642 | 247 |
Impairment of equipment assets held for sale | 1,621 | 1,556 |
Gain on disposal of assets held for sale | CAD 166 | CAD 374 |
Property. plant and equipment (
Property. plant and equipment (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | CAD 338,586 | CAD 317,329 |
Owned assets, accumulated depreciation | 168,658 | 164,352 |
Owned assets, net book value | 169,928 | 152,977 |
Assets under capital lease, cost | 160,382 | 143,983 |
Assets under capital lease, accumulated depreciation | 51,662 | 40,508 |
Assets under capital lease, net book value | 108,720 | 103,475 |
Total plant and equipment, cost | 498,968 | 461,312 |
Total accumulated depreciation | 220,320 | 204,860 |
Total plant and equipment, net book value | 278,648 | 256,452 |
Addition of property, plant and equipment by means of capital leases | 34,730 | 23,490 |
Sale leaseback transactions | 20,697 | 12,674 |
Heavy equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 196,045 | 188,785 |
Owned assets, accumulated depreciation | 77,726 | 68,487 |
Owned assets, net book value | 118,319 | 120,298 |
Assets under capital lease, cost | 69,657 | 84,527 |
Assets under capital lease, accumulated depreciation | 28,613 | 21,848 |
Assets under capital lease, net book value | 41,044 | 62,679 |
Major component parts in use | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 72,448 | 64,229 |
Owned assets, accumulated depreciation | 45,694 | 49,673 |
Owned assets, net book value | 26,754 | 14,556 |
Assets under capital lease, cost | 85,015 | 50,882 |
Assets under capital lease, accumulated depreciation | 21,247 | 17,233 |
Assets under capital lease, net book value | 63,768 | 33,649 |
Other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 31,923 | 31,670 |
Owned assets, accumulated depreciation | 18,400 | 16,335 |
Owned assets, net book value | 13,523 | 15,335 |
Assets under capital lease, cost | 558 | 5,178 |
Assets under capital lease, accumulated depreciation | 543 | 611 |
Assets under capital lease, net book value | 15 | 4,567 |
Licensed motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 18,298 | 20,353 |
Owned assets, accumulated depreciation | 14,888 | 18,258 |
Owned assets, net book value | 3,410 | 2,095 |
Assets under capital lease, cost | 5,129 | 3,373 |
Assets under capital lease, accumulated depreciation | 1,242 | 805 |
Assets under capital lease, net book value | 3,887 | 2,568 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 10,157 | 9,769 |
Owned assets, accumulated depreciation | 9,468 | 9,112 |
Owned assets, net book value | 689 | 657 |
Assets under capital lease, cost | 23 | 23 |
Assets under capital lease, accumulated depreciation | 17 | 11 |
Assets under capital lease, net book value | 6 | 12 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 7,168 | |
Owned assets, net book value | 7,168 | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 2,547 | 2,523 |
Owned assets, accumulated depreciation | 2,482 | 2,487 |
Owned assets, net book value | 65 | 36 |
Assets held under capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | CAD 19,483 | CAD 18,536 |
Other assets - Schedule of of a
Other assets - Schedule of of assets (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Long term prepaid lease payments (note 7) | CAD 1,779 | CAD 1,839 |
Intangible assets | 938 | 1,790 |
Deferred financing costs | 707 | 320 |
Deferred lease inducement assets | 784 | 927 |
Loan to partnership (note 24) | 969 | 0 |
Total other assets, noncurrent | CAD 5,177 | CAD 4,876 |
Other assets - Intangible asset
Other assets - Intangible assets (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Cost | CAD 18,188 | CAD 18,122 |
Accumulated Amortization | 17,250 | 16,332 |
Net book value | 938 | 1,790 |
Internally developed computer software capitalized during the period | 66 | 304 |
Amortization of intangible assets (note 10(b)) | 918 | 1,688 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | 464 | |
2,019 | 266 | |
2,020 | 149 | |
2,021 | 59 | |
Net book value | CAD 938 | CAD 1,790 |
Other assets - Deferred financi
Other assets - Deferred financing costs (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred financing costs [Abstract] | ||
Cost | CAD 1,390 | CAD 550 |
Accumulated Amortization | 683 | 230 |
Net Book Value | 707 | 320 |
Payments of financing fees | 2,982 | 99 |
Amortization of deferred financing costs | 797 | 572 |
Revolver | ||
Deferred financing costs [Abstract] | ||
Payments of financing fees | 840 | 30 |
Amortization of deferred financing costs | CAD 453 | CAD 162 |
Other assets - Deferred lease i
Other assets - Deferred lease inducements asset (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Lease Inducements Asset [Roll Forward] | ||
Balance, beginning of year | CAD 927 | CAD 1,070 |
Amortization of deferred lease inducements | (143) | (143) |
Balance, end of year | CAD 784 | CAD 927 |
Income taxes - Expense (benefit
Income taxes - Expense (benefit) (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | CAD 6,468 | CAD (494) |
Tax rate | 27.00% | 27.00% |
Expected expense (benefit) | CAD 1,746 | CAD (133) |
(Decrease) increase related to: | ||
Income tax adjustments and reassessments | 30 | 246 |
Non taxable portion of capital gains | (672) | (465) |
Stock-based compensation | 88 | 158 |
Other | 12 | 145 |
Income tax expense (benefit) | 1,204 | (49) |
Deferred income tax expense (benefit) (note 11) | CAD 1,204 | CAD (49) |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Tax credit carryforwards | CAD 18,619 | CAD 15,225 |
Deferred financing costs | 52 | 355 |
Billings in excess of costs on uncompleted contracts | 222 | 289 |
Capital lease obligations | 17,961 | 16,578 |
Stock-based compensation | 2,985 | 2,672 |
Other | 2,357 | 1,273 |
Deferred tax assets, gross | 42,196 | 36,392 |
Less: valuation allowance | (1,035) | (1,035) |
Deferred tax assets, net of valuation allowance | 41,161 | 35,357 |
Deferred tax liabilities: | ||
Unbilled revenue | 5,231 | 3,381 |
Assets held for sale | 1,523 | 67 |
Accounts receivable – holdbacks | 72 | 143 |
Property, plant and equipment | 61,953 | 58,180 |
Deferred tax liabilities, gross | 68,779 | 61,771 |
Net deferred income tax liability | (27,618) | (26,414) |
Classified as: | ||
Deferred tax asset | 10,539 | 13,807 |
Deferred tax liability | CAD (38,157) | CAD (40,221) |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017CADprovincial_jurisdiction | Dec. 31, 2016CADprovincial_jurisdiction | |
Income Tax Disclosure [Abstract] | ||
Number of provincial jurisdictions | provincial_jurisdiction | 1 | 1 |
Deferred tax assets, non-capital operating loss carryforwards | CAD 17,584 | |
Non-capital losses for income tax purposes | 65,126 | |
Valuation allowance, amount | 1,035 | CAD 1,035 |
Operating loss carryforwards, not subject to expiration | CAD 7,664 |
Income taxes - Expiration of no
Income taxes - Expiration of non-capital losses for income tax purposes (Details) CAD in Thousands | Dec. 31, 2017CAD |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | CAD 65,126 |
2,025 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 2 |
2,026 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 151 |
2,027 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 128 |
2,028 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
2,029 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
2,030 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
2,031 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 604 |
2,032 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 9,354 |
2,033 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 13,829 |
2,034 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 8,317 |
2,035 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
2,036 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 5,691 |
2,037 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | CAD 27,050 |
Accrued liabilities (Details)
Accrued liabilities (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued interest payable | CAD 714 | CAD 85 |
Payroll liabilities | 8,828 | 7,733 |
Liabilities related to equipment leases | 219 | 123 |
Current portion of deferred gain on sale-leaseback (note 16(a)) | 1,445 | 586 |
Dividends payable (note 17(d)) | 510 | 569 |
Income and other taxes payable | 2,007 | 2,079 |
Liabilities related to tire disposal | 156 | 0 |
Accrued liabilities | CAD 13,879 | CAD 11,175 |
Long term debt - Schedule of Lo
Long term debt - Schedule of Long Term Debt (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Debt, Current Maturities [Abstract] | ||
Current portion of long term debt | CAD 0 | CAD 8,169 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Less: deferred financing costs | (1,935) | (60) |
Long-term debt | 70,065 | 31,266 |
Convertible debentures | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross, non-current | 40,000 | 0 |
Credit facility | ||
Long-term Debt, Current Maturities [Abstract] | ||
Credit facility | 0 | 8,246 |
Less: deferred financing costs | 0 | (77) |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross, non-current | CAD 32,000 | CAD 31,326 |
Long term debt - Schedule of Cr
Long term debt - Schedule of Credit Facilities (Details) - Credit facility - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total credit facilities | CAD 32,000 | CAD 39,572 |
Less: current portion | 0 | (8,246) |
Credit facility, noncurrent | 32,000 | 31,326 |
Term loan | ||
Debt Instrument [Line Items] | ||
Total credit facilities | 0 | 28,572 |
Revolver | ||
Debt Instrument [Line Items] | ||
Total credit facilities | CAD 32,000 | CAD 11,000 |
Long term debt - Credit Facilit
Long term debt - Credit Facility Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017CADconvenant | Dec. 31, 2016CAD | Aug. 01, 2017CAD | Jul. 31, 2017CAD | |
Line of Credit Facility [Line Items] | ||||
Payments of financing fees | CAD 2,982,000 | CAD 99,000 | ||
Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity of credit facility | CAD 140,000,000 | |||
Additional borrowing limit | 25,000,000 | |||
Capital lease borrowing limit | CAD 100,000,000 | |||
Amount outstanding during period | 800,000 | 800,000 | ||
Prior borrowings | CAD 70,000,000 | |||
Unused borrowing availability under the revolving facility | 58,200,000 | |||
Payments of financing fees | 840,000 | 30,000 | ||
Write off of debt issuance costs | CAD 329,000 | |||
Term loan | ||||
Line of Credit Facility [Line Items] | ||||
Prior borrowings | CAD 30,000,000 | |||
Number of financial covenants | convenant | 2 | |||
Senior leverage ratio | 3 | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Standby fees percentage | 0.35% | |||
Minimum | Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Prior borrowings | CAD 107,200,000 | 51,700,000 | ||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Standby fees percentage | 0.65% | |||
Maximum | Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Prior borrowings | CAD 92,100,000 | |||
Maximum | Term loan | ||||
Line of Credit Facility [Line Items] | ||||
Senior leverage ratio | 3.5 | |||
Fixed charge ratio | 1.15 |
Long term debt - Series 1 Deben
Long term debt - Series 1 Debentures (Details) - Debentures - Series 1 Debentures - CAD | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Redeemed debentures | CAD 19,900,000 | CAD 0 |
Loss on extinguishment of debt | CAD 600,000 |
Long term debt - Convertible De
Long term debt - Convertible Debenture (Details) | Mar. 15, 2017CADCAD / shares | Dec. 31, 2017CAD | Dec. 31, 2016CAD |
Debt Instrument [Line Items] | |||
Payments of financing fees | CAD 2,982,000 | CAD 99,000 | |
Convertible subordinated debentures | |||
Debt Instrument [Line Items] | |||
Face amount of long term debt | CAD 40,000,000 | ||
Conversion interest rate | 5.50% | ||
Conversion price (in CAD per share) | CAD / shares | CAD 10.85 | ||
Conversion ratio | 0.0921659 | ||
Threshold percentage of share price for conversion | 125.00% | ||
Redemption price as a percentage of the principal amount | 101.00% | ||
Payments of financing fees | CAD 2,142,000 |
Long term debt - Deferred Finan
Long term debt - Deferred Financing (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Cost | CAD 2,377 | CAD 235 |
Accumulated amortization | 442 | 98 |
Net Book Value | 1,935 | 137 |
Amortization of deferred financing costs | 797 | 572 |
Convertible subordinated debentures | ||
Debt Instrument [Line Items] | ||
Amortization of deferred financing costs | CAD 344 | CAD 410 |
Capital lease obligations (Deta
Capital lease obligations (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,018 | CAD 31,530 | |
2,019 | 20,696 | |
2,020 | 12,182 | |
2,021 | 4,892 | |
2,022 | 2,192 | |
Subtotal: | 71,492 | |
Less: amount representing interest (at rates ranging from 2.75% to 7.51%) | (4,523) | |
Carrying amount of minimum lease payments | 66,969 | |
Less: current portion | (29,136) | CAD (24,062) |
Long term portion | CAD 37,833 | CAD 37,338 |
Minimum | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Capital lease interest rate | 2.75% | |
Maximum | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Capital lease interest rate | 7.51% |
Financial instruments and ris80
Financial instruments and risk management - Financial instruments (Details) - CAD CAD in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Credit facilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Basis points | 1.00% | ||
Outstanding balance, long-term debt | CAD 32,000 | CAD 39,600 | |
Level 2 | Carrying Amount | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Capital lease obligations | [1] | 66,969 | 61,400 |
Level 2 | Fair Value | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Capital lease obligations | [1] | 61,872 | 57,741 |
Level 1 | Carrying Amount | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Convertible debentures | [2] | 40,000 | 0 |
Level 1 | Fair Value | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Convertible debentures | [2] | CAD 38,700 | CAD 0 |
[1] | The fair values of amounts due under capital leases are based on management estimates which are determined by discounting cash flows required under the instruments at the interest rates currently estimated to be available for instruments with similar terms. | ||
[2] | The fair value of the Convertible Debentures is based upon the period end closing market price. |
Financial instruments and ris81
Financial instruments and risk management - Assets held-for-sale (Details) - Non-recurring basis - Level 3 - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | CAD 5,642 | CAD 247 |
Change in Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | CAD (72) | CAD (1,556) |
Financial instruments and ris82
Financial instruments and risk management - Risk management (Details) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Customer A | Total revenues | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 44.00% | 47.00% |
Customer B | Total revenues | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26.00% | 25.00% |
Customer C | Total revenues | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17.00% | 21.00% |
Customer 1 | Accounts receivable and unbilled revenue | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 42.00% | 42.00% |
Customer 2 | Accounts receivable and unbilled revenue | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20.00% | 22.00% |
Customer 3 | Accounts receivable and unbilled revenue | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 7.00% |
Customer 4 | Accounts receivable and unbilled revenue | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 13.00% |
Customer 5 | Accounts receivable and unbilled revenue | Major customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 2.00% | 13.00% |
Credit facilities | ||
Concentration Risk [Line Items] | ||
Outstanding balance, long-term debt | CAD 32 | CAD 39.6 |
Corresponding change in annual interest expense | CAD 0.3 |
Financial instruments and ris83
Financial instruments and risk management - Maximum credit exposure (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Unbilled revenue | CAD 21,572 | CAD 15,965 |
Maximum exposure to credit risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Trade accounts receivables | 45,716 | 39,274 |
Other receivables | 1,512 | 806 |
Total accounts receivable | 47,228 | 40,080 |
Unbilled revenue | 21,572 | 15,965 |
Billed Contracts Receivable | CAD 68,800 | CAD 56,045 |
Financial instruments and ris84
Financial instruments and risk management - Trade receivables (Details) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Not past due | CAD 42,882,000 | CAD 34,263,000 |
Past due 1-30 days | 2,566,000 | 2,956,000 |
Past due 31-60 days | 0 | 2,000,000 |
More than 61 days | 268,000 | 55,000 |
Total | 45,716,000 | 39,274,000 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts | CAD 0 | CAD 0 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment terms | 15 days | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment terms | 60 days |
Other long term obligations - S
Other long term obligations - Schedule of other long term obligations (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred lease inducements liability (note 16(b)) | CAD 10 | CAD 38 | |
Asset retirement obligation (note 16(c)) | 744 | 678 | CAD 617 |
Restricted share / Deferred stock unit plan (notes 21(d) and (f)) | 5,672 | 4,945 | |
Deferred gain on sale-leaseback (note 16(d)) | 7,654 | 3,199 | CAD 780 |
Other obligations, current and noncurrent | 14,080 | 8,860 | |
Less current portion of: | |||
Deferred gain on sale leaseback | (1,445) | (586) | |
Other obligations, noncurrent portion | CAD 12,635 | CAD 8,274 |
Other long term obligations - O
Other long term obligations - Other liabilities and obligations (Details) - CAD CAD in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lease Incentive, Payable [Roll Forward] | ||||
Balance, beginning of year | CAD 38 | CAD 145 | ||
Amortization of deferred lease inducements | (28) | (107) | ||
Balance, end of year | 38 | 145 | CAD 10 | CAD 38 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Balance, beginning of year | 678 | 617 | ||
Accretion expense | 66 | 61 | ||
Balance, end of year | CAD 744 | 678 | ||
Estimated undiscounted cash flows required to settle obligation | CAD 1,084 | CAD 1,084 | ||
Credit adjusted risk-free rate assumed in measuring the asset retirement obligation (percent) | 9.42% | |||
Deferred Gain on Sale Leaseback [Roll Forward] | ||||
Balance, beginning of year | CAD 3,199 | 780 | ||
Addition | 5,155 | 2,792 | ||
Amortization of deferred gain on sale-leaseback | (700) | (373) | ||
Balance, end of year | CAD 7,654 | CAD 3,199 |
Shares - Voting common shares (
Shares - Voting common shares (Details) - CAD CAD in Thousands | Aug. 14, 2017 | May 25, 2017 | Mar. 28, 2017 | Aug. 09, 2016 | Mar. 21, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, issued and outstanding (in shares) | 30,518,907 | 33,150,281 | ||||||
Beginning balance, common share outstanding net of treasury shares (in shares) | 28,305,660 | 31,893,478 | ||||||
Issued upon exercise of stock options (in shares) | 102,040 | |||||||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (in shares) | 353,592 | 87,554 | ||||||
Retired through share purchase programs (in shares) | (1,142,762) | (663,400) | (819,395) | (1,075,900) | (1,657,514) | (2,625,557) | (2,733,414) | |
Ending balance, issued and outstanding (in shares) | 28,070,150 | 30,518,907 | ||||||
Ending balance, common share outstanding net of treasury shares (in shares) | 25,452,224 | 28,305,660 | ||||||
Equity classified stock-based compensation settled (in shares) | (161,285) | (35,313) | ||||||
Equity classified stock-based compensation settled | CAD 987 | CAD 130 | ||||||
Share option plan | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issued upon exercise of stock options (in shares) | [1] | 176,800 | 102,040 | |||||
Treasury shares | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, issued and outstanding (in shares) | 2,213,247 | 1,256,803 | ||||||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (in shares) | (758,271) | (1,043,998) | ||||||
Purchase of treasury shares for settlement of certain equity classified stock-based compensation (in shares) | 353,592 | 87,554 | ||||||
Ending balance, issued and outstanding (in shares) | 2,617,926 | 2,213,247 | ||||||
[1] | All stock options exercised resulted in new common shares being issued (note 17(a)) |
Shares - Antidilutive securitie
Shares - Antidilutive securities (Details) - CAD CAD / shares in Units, CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) available to common shareholders | CAD 5,264 | CAD (445) |
Weighted average number of common shares (in shares) | 26,697,066 | 29,965,899 |
Weighted average of effects: | ||
Dilutive effect of treasury shares (in shares) | 2,622,957 | 0 |
Dilutive effect of stock options (in shares) | 285,703 | 0 |
Weighted average number of diluted common shares (in shares) | 29,605,726 | 29,965,899 |
Basic net income (loss) per share (in CAD per share) | CAD 0.20 | CAD (0.01) |
Diluted net income (loss) per share (in CAD per share) | CAD 0.18 | CAD (0.01) |
Stock options | ||
Weighted average of effects: | ||
Anti-dilutive awards not considered in computing diluted earnings per share (in shares) | 469,819 | 1,176,080 |
Treasury shares | ||
Weighted average of effects: | ||
Anti-dilutive awards not considered in computing diluted earnings per share (in shares) | 0 | 2,213,247 |
Convertible debentures | ||
Weighted average of effects: | ||
Anti-dilutive awards not considered in computing diluted earnings per share (in shares) | 2,949,309 |
Shares - Share purchase program
Shares - Share purchase program (Details) - CAD CAD in Thousands | Aug. 14, 2017 | May 25, 2017 | Mar. 28, 2017 | Aug. 09, 2016 | Mar. 21, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares retired during period (in shares) | 1,142,762 | 663,400 | 819,395 | 1,075,900 | 1,657,514 | 2,625,557 | 2,733,414 |
Common stock | Stock purchase program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retired through share purchase programs (in shares) | 1,460,089 | ||||||
Percentage of issued and outstanding common shares purchased under Purchase Program | 5.00% | ||||||
Increase (decrease) as a result of the retirement of shares | CAD (9,810) | CAD (5,706) | CAD (7,057) | CAD (9,237) | CAD (14,121) | CAD (22,573) | CAD (23,358) |
Additional paid in capital | Stock purchase program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase (decrease) as a result of the retirement of shares | CAD 4,119 | CAD 1,908 | CAD 1,576 | CAD 5,133 | CAD 9,021 | CAD 7,603 | CAD 14,154 |
Shares - Movements in shares re
Shares - Movements in shares repurchased (Details) - CAD CAD in Thousands | Aug. 14, 2017 | May 25, 2017 | Mar. 28, 2017 | Aug. 09, 2016 | Mar. 21, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 01, 2017 | Apr. 01, 2017 |
Accelerated Share Repurchases [Line Items] | |||||||||
Maximum number of shares to be purchased (in shares) | 2,424,333 | 838,119 | 819,395 | 1,075,968 | 1,657,514 | 4,081,847 | 2,733,482 | ||
Actual number of shares purchased and subsequently cancelled (in shares) | 1,142,762 | 663,400 | 819,395 | 1,075,900 | 1,657,514 | 2,625,557 | 2,733,414 | ||
Common shares | Stock purchase program | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Increase (decrease) as a result of the retirement of shares | CAD 9,810 | CAD 5,706 | CAD 7,057 | CAD 9,237 | CAD 14,121 | CAD 22,573 | CAD 23,358 | ||
Retired through share purchase programs (in shares) | 1,460,089 | ||||||||
Percentage of issued and outstanding common shares purchased under Purchase Program | 5.00% | ||||||||
Additional paid-in capital | Stock purchase program | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Increase (decrease) as a result of the retirement of shares | CAD (4,119) | CAD (1,908) | CAD (1,576) | CAD (5,133) | CAD (9,021) | CAD (7,603) | CAD (14,154) | ||
Maximum | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Maximum number of shares to be purchased (in shares) | 1,895,363 | 1,075,968 | 2,733,482 | 1,895,363 |
Shares - Dividends (Details)
Shares - Dividends (Details) - CAD CAD / shares in Units, CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Annual aggregate dividend (in CAD per share) | CAD 0.08 | |
Quarterly dividends paid (CAD per share) | 0.02000 | CAD 0.02 |
Dividends paid (in CAD per share) | CAD 0.08 | CAD 0.08 |
Dividends payable | CAD 510 | CAD 569 |
Commitments (Details)
Commitments (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,018 | CAD 3,248 | |
2,019 | 2,238 | |
2,020 | 2,348 | |
2,021 | 2,374 | |
2,022 | 2,318 | |
Total future minimum lease payments for operating leases | 12,526 | |
Operating leases, rent expense | 2,902 | CAD 3,515 |
Capital expenditures incurred but not yet paid | CAD 17,600 |
Interest expense (Details)
Interest expense (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Interest Expense [Line Items] | ||
Amortization of deferred financing costs | CAD 797 | CAD 572 |
Interest on long term debt | 7,087 | 5,978 |
Other interest income | (144) | (194) |
Total interest expense, net | 6,943 | 5,784 |
Capital lease obligations | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 3,023 | 2,836 |
Credit Facility | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 1,507 | 1,593 |
Debentures | Series 1 Debentures | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 0 | 977 |
Convertible subordinated debentures | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 1,760 | 0 |
Amortization of deferred financing costs | CAD 344 | CAD 410 |
Stock-based compensation - Stoc
Stock-based compensation - Stock-based compensation expenses (Details) - General and administrative expenses - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | CAD 3,995,000 | CAD 6,030,000 |
Share option plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 326,000 | 587,000 |
Liability classified restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 0 | 52,000 |
Equity classified restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 1,293,000 | 1,384,000 |
Performance restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 1,306,000 | 820,000 |
Liability classified deferred stock unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | CAD 1,070,000 | CAD 3,187,000 |
Stock-based compensation - Shar
Stock-based compensation - Share options plan (Details) - CAD CAD / shares in Units, CAD in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from options exercised | CAD 575 | CAD 284 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised (in shares)) | (102,040) | ||
Share option plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number shares acquired per each option exercised | 1 | ||
Stock options annual vesting percentage | 20.00% | ||
Number of shares authorized for issuance (in shares) | 3,399,399 | ||
Proceeds from options exercised | CAD 575 | CAD 284 | |
Total intrinsic value of options exercised | CAD 640 | CAD 187 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 1,176,080 | 1,448,000 | |
Exercised (in shares)) | [1] | (176,800) | (102,040) |
Forfeited (in shares) | (85,740) | (169,880) | |
Ending balance (in shares) | 913,540 | 1,176,080 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance (CAD per share) | CAD 5.56 | CAD 5.33 | |
Exercised (CAD per share) | [1] | 3.26 | 2.77 |
Forfeited (CAD per share) | 12.36 | 5.31 | |
Ending balance (CAD per share) | CAD 5.36 | CAD 5.56 | |
Share option plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Years from grant date stock options expire | 10 years | ||
[1] | All stock options exercised resulted in new common shares being issued (note 17(a)) |
Stock-based compensation - Opti
Stock-based compensation - Options by exercise price range (Details) - Share option plan - CAD CAD / shares in Units, CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, Number (in shares) | 913,540 | |
Options outstanding, Weighted average remaining life | 4 years | 4 years 9 months |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 5.36 | CAD 5.56 |
Total options exercisable (in shares) | 887,140 | 898,500 |
Options exercisable, Weighted average remaining life | 3 years 10 months 24 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 5.35 | CAD 6.21 |
Fair value of options vested | CAD 518 | CAD 594 |
Non-vested awards not yet recognized | CAD 46 | CAD 269 |
$ 2.75 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 2.75 | |
Options outstanding, Number (in shares) | 187,420 | |
Options outstanding, Weighted average remaining life | 4 years 3 months 18 days | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 2.75 | |
Options exercisable, Number (in shares) | 187,420 | |
Options exercisable, Weighted average remaining life | 4 years 3 months 18 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 2.75 | |
$ 2.79 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 2.79 | |
Options outstanding, Number (in shares) | 300,000 | |
Options outstanding, Weighted average remaining life | 4 years 6 months | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 2.79 | |
Options exercisable, Number (in shares) | 300,000 | |
Options exercisable, Weighted average remaining life | 4 years 6 months | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 2.79 | |
$ 3.69 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 3.69 | |
Options outstanding, Number (in shares) | 25,800 | |
Options outstanding, Weighted average remaining life | 10 months 24 days | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 3.69 | |
Options exercisable, Number (in shares) | 25,800 | |
Options exercisable, Weighted average remaining life | 10 months 24 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 3.69 | |
$ 5.91 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 5.91 | |
Options outstanding, Number (in shares) | 132,000 | |
Options outstanding, Weighted average remaining life | 6 years | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 5.91 | |
Options exercisable, Number (in shares) | 105,600 | |
Options exercisable, Weighted average remaining life | 6 years | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 5.91 | |
$ 6.56 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 6.56 | |
Options outstanding, Number (in shares) | 70,780 | |
Options outstanding, Weighted average remaining life | 3 years 10 months 24 days | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 6.56 | |
Options exercisable, Number (in shares) | 70,780 | |
Options exercisable, Weighted average remaining life | 3 years 10 months 24 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 6.56 | |
$ 8.28 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 8.28 | |
Options outstanding, Number (in shares) | 10,000 | |
Options outstanding, Weighted average remaining life | 1 year 6 months | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 8.28 | |
Options exercisable, Number (in shares) | 10,000 | |
Options exercisable, Weighted average remaining life | 1 year 6 months | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 8.28 | |
$ 8.58 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 8.58 | |
Options outstanding, Number (in shares) | 30,000 | |
Options outstanding, Weighted average remaining life | 2 years 8 months 12 days | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 8.58 | |
Options exercisable, Number (in shares) | 30,000 | |
Options exercisable, Weighted average remaining life | 2 years 8 months 12 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 8.58 | |
$ 9.33 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 9.33 | |
Options outstanding, Number (in shares) | 55,780 | |
Options outstanding, Weighted average remaining life | 2 years 1 month 6 days | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 9.33 | |
Options exercisable, Number (in shares) | 55,780 | |
Options exercisable, Weighted average remaining life | 2 years 1 month 6 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 9.33 | |
$ 10.13 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 10.13 | |
Options outstanding, Number (in shares) | 51,760 | |
Options outstanding, Weighted average remaining life | 3 years | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 10.13 | |
Options exercisable, Number (in shares) | 51,760 | |
Options exercisable, Weighted average remaining life | 3 years | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 10.13 | |
$ 16.46 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price (CAD per share) | CAD 16.46 | |
Options outstanding, Number (in shares) | 50,000 | |
Options outstanding, Weighted average remaining life | 3 months 18 days | |
Options outstanding, Weighted average exercise price (in CAD per share) | CAD 16.46 | |
Options exercisable, Number (in shares) | 50,000 | |
Options exercisable, Weighted average remaining life | 3 months 18 days | |
Options exercisable, Weighted average exercise price (in CAD per share) | CAD 16.46 | |
Stock options | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Period for award recognition | 1 year | 11 months |
Stock-based compensation - Rest
Stock-based compensation - Restricted share unit plan (Details) - Restricted share units (RSUs) - CAD CAD / shares in Units, CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Liability classified restricted share unit plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition in years following grant | 2 years | |
Award vesting period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 0 | 290,790 |
Vested (in shares) | (290,790) | |
Ending balance (in shares) | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Award units settled during the period | CAD 723 | |
Equity classified restricted share unit plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 1,123,975 | 774,156 |
Granted/issued (in shares) | 355,292 | 501,523 |
Vested (in shares) | (259,860) | (87,580) |
Forfeited (in shares) | (29,474) | (64,124) |
Ending balance (in shares) | 1,189,933 | 1,123,975 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding, beginning of period (CAD per unit) | CAD 4.20 | CAD 4.45 |
Granted/Issued, Weighted average exercise price (CAD per unit) | 6.02 | 3.78 |
Vested, Weighted average exercise price (CAD per unit) | 6.24 | 3.51 |
Forfeited, Weighted average exercise price (CAD per unit) | 4 | 3.50 |
Outstanding, end of period (CAD per unit) | CAD 4.22 | CAD 4.20 |
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | CAD 2,199 | CAD 1,945 |
Period for award recognition | 1 year 3 months 18 days | 1 year 7 months 1 day |
Stock-based compensation - Perf
Stock-based compensation - Performance and deferred stock unit plan (Details) | Jul. 01, 2014 | Dec. 31, 2017CADCAD / sharesshares | Dec. 31, 2016CADCAD / sharesshares |
Performance restricted share units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 739,300 | 423,592 | |
Granted/issued (in shares) | 248,824 | 343,706 | |
Forfeited (in shares) | (21,542) | (27,998) | |
Vested/redeemed (in shares) | (69,949) | ||
Ending balance (in shares) | 896,633 | 739,300 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Outstanding, beginning of period (CAD per unit) | CAD / shares | CAD 4.84 | CAD 4.86 | |
Granted, Weighted average exercise price (CAD per unit) | CAD / shares | 5.98 | 4.97 | |
Vested, Weighted average exercise price (CAD per unit) | CAD / shares | 8.57 | ||
Forfeited, Weighted average exercise price (CAD per unit) | CAD / shares | 4.05 | 4.52 | |
Outstanding, end of period (CAD per unit) | CAD / shares | CAD 4.81 | CAD 4.84 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.17% | 0.52% | |
Expected volatility | 46.47% | 43.30% | |
Settlement ratio, per PSU (in shares) | 1.34 | 0 | |
Performance restricted share unit plan | Performance restricted share units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
July 2014 grant | Performance restricted share units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | CAD | CAD 2,250,000 | CAD 1,878,000 | |
Period for award recognition | 1 year 4 months 9 days | 1 year 9 months | |
Deferred share unit plan | Deferred stock units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Annual fixed remuneration | 50.00% | ||
Liability classified deferred stock unit plan | Deferred stock units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 941,937 | 928,874 | |
Granted/issued (in shares) | 114,895 | 171,980 | |
Vested/redeemed (in shares) | (65,249) | (158,917) | |
Ending balance (in shares) | 991,583 | 941,937 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | CAD | CAD 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Fair market value (CAD per share) | CAD / shares | CAD 5.72 | CAD 5.25 | |
Award units settled during the period | CAD | CAD 343,000 | CAD 488,000 | |
Liability classified deferred stock unit plan | Deferred stock units (DSUs) | Accrued liabilities | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Current portion of award obligation | CAD | 0 | 0 | |
Liability classified deferred stock unit plan | Deferred stock units (DSUs) | Other liabilities | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Non-current portion of award obligation | CAD | CAD 5,672,000 | CAD 4,945,000 |
Other information Other informa
Other information Other information - Supplemental cash flow information (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid during the year for: | ||
Interest | CAD 5,615 | CAD 5,895 |
Cash received during the year for: | ||
Interest | CAD 162 | CAD 194 |
Other information - Non-cash (D
Other information - Non-cash (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Non-cash transactions: | ||
Addition of property, plant and equipment by means of capital leases | CAD 34,730 | CAD 23,490 |
Acquisition of property, plant and equipment related to the initial investment in the partnership | 2,581 | 0 |
Increase in capital lease obligations related to the initial investment in the partnership | 800 | 0 |
Increase in long term debt related to the initial investment in the partnership | 637 | 0 |
Reclass from property, plant and equipment to assets held for sale | (6,869) | (1,374) |
Non-cash working capital exclusions: | ||
Increase in inventory related to the initial partnership investment | (29) | 0 |
Increase in prepaid expenses related to the initial investment in the partnership | (4) | 0 |
Decrease in inventory related to a non-monetary transaction | 0 | (575) |
Net (decrease) increase in accrued liabilities related to dividend payable | (59) | 569 |
Operating activities: | ||
Accounts receivable | (7,148) | (15,344) |
Unbilled revenue | (5,607) | 1,600 |
Inventories | (1,288) | (1,437) |
Prepaid expenses and deposits | (283) | 126 |
Accounts payable | 5,640 | 4,517 |
Accrued liabilities | 1,904 | 4,144 |
Billings in excess of costs incurred and estimated earnings on uncompleted contracts | (247) | 614 |
Net changes in non-cash working capital | (7,029) | (5,780) |
Purchase of property, plant and equipment | ||
Non-cash working capital exclusions: | ||
Increase in accrued liabilities related to the current portion of the deferred gain on sale-leaseback | 859 | 365 |
Restricted share units (RSUs) | Restricted share unit plan | ||
Non-cash working capital exclusions: | ||
Net decrease in accrued liabilities related to current portion of RSU liability | CAD 0 | CAD (671) |
Claims revenue (Details)
Claims revenue (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims revenue recognized | CAD 1,168 | CAD 1,171 |
Claims revenue uncollected (classified as unbilled revenue) | 8,020 | 8,259 |
Accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims revenue uncollected (classified as unbilled revenue) | 358 | 1,171 |
Unbilled revenue | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Claims revenue uncollected (classified as unbilled revenue) | CAD 7,662 | CAD 7,088 |
Investment in partnership - Ass
Investment in partnership - Assets and Liabilities Recognized (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||
Cash | CAD 8,186 | CAD 13,666 | CAD 32,351 | |
Inventories | 4,754 | 3,437 | ||
Prepaid expenses and deposits (note 7) | 1,898 | 1,551 | ||
Property, plant and equipment | 278,648 | 256,452 | ||
Total Assets | 383,644 | 350,081 | ||
Capital lease obligations | 37,833 | 37,338 | ||
Long-term debt | 70,065 | 31,266 | ||
Total Liabilities | CAD 237,720 | 191,127 | ||
Partnership Interest | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Undivided ownership interest, percentage | 49.00% | |||
Cash | CAD 1,131 | |||
Inventories | 29 | |||
Prepaid expenses and deposits (note 7) | 4 | |||
Property, plant and equipment | 2,581 | |||
Total Assets | CAD 4,143 | 3,745 | 0 | |
Capital lease obligations | 800 | |||
Long-term debt | 637 | |||
Total Liabilities | CAD 2,235 | 1,437 | CAD 0 | |
Investments in joint ventures | CAD 2,308 |
Investment in partnership - Bal
Investment in partnership - Balance Sheet Financial Data (Details) - CAD CAD in Thousands | Dec. 31, 2017 | Apr. 01, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | |||
Current assets | CAD 89,280 | CAD 74,946 | |
Total Assets | 383,644 | 350,081 | |
Liabilities | 79,030 | 74,028 | |
Total Liabilities | 237,720 | 191,127 | |
Loan to partnership (note 24) | 969 | 0 | |
Partnership Interest | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 1,868 | 0 | |
Non-current assets | 2,275 | 0 | |
Total Assets | 4,143 | CAD 3,745 | 0 |
Liabilities | 1,094 | 0 | |
Long-term liabilities | 1,141 | 0 | |
Total Liabilities | 2,235 | CAD 1,437 | 0 |
Net Assets | CAD 1,908 | CAD 0 | |
Undivided ownership interest, percentage | 49.00% | ||
Parent Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Loan to partnership (note 24) | CAD 1,900 |
Investment in partnership - Inc
Investment in partnership - Income Statement Financial Data (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | CAD 292,557 | CAD 213,180 |
Gross profit (i) | 39,647 | 32,343 |
Income (loss) before income taxes | 6,468 | (494) |
Net loss and comprehensive loss(ii) | 5,264 | (445) |
Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 4,310 | 0 |
Gross profit (i) | 3,908 | 0 |
Income (loss) before income taxes | (401) | 0 |
Net loss and comprehensive loss(ii) | CAD (401) | CAD 0 |
Employee benefit plans (Details
Employee benefit plans (Details) - CAD CAD in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Company match of voluntary contributions made by employees, percentage of base salary | 5.00% | |
Contributions made by the Company during the year | CAD 877 | CAD 865 |
Related party transactions (Det
Related party transactions (Details) CAD in Thousands | 12 Months Ended |
Dec. 31, 2017CAD | |
Director | |
Related Party Transaction [Line Items] | |
Amount received from related party | CAD 332 |