Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-33161 |
Entity Registrant Name | North American Construction Group Ltd. |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 1629 |
Entity Address, Address Line One | 27287 - 100 Avenue |
Entity Address, City or Town | Acheson, |
Entity Address, State or Province | AB |
Entity Address, Postal Zip Code | T7X 6H8 |
City Area Code | (780) |
Local Phone Number | 960-7171 |
Title of 12(b) Security | Common Shares |
Trading Symbol | NOA |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 27,827,282 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction | false |
Entity Central Index Key | 0001368519 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 111 Eighth Avenue |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10011 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Contact Personnel Name | CT Corporation System |
Entity Address, Address Line Two | 13th Floor |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Edmonton, AB, Canada |
Auditor Firm ID | 85 |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 88,614 | $ 69,144 |
Accounts receivable | 97,855 | 83,811 |
Contract assets | 35,027 | 15,802 |
Inventories | 64,962 | 49,898 |
Prepaid expenses and deposits | 7,402 | 10,587 |
Assets held for sale | 1,340 | 1,117 |
Total current assets | 295,200 | 230,359 |
Property, plant and equipment | 1,142,946 | 645,810 |
Operating lease right-of-use assets | 12,782 | 14,739 |
Intangible assets | 6,971 | 6,773 |
Investments in affiliates and joint ventures | 81,435 | 75,637 |
Other assets | 7,144 | 5,808 |
Deferred tax assets | 0 | 387 |
Total assets | 1,546,478 | 979,513 |
Current liabilities | ||
Accounts payable | 146,190 | 102,549 |
Accrued liabilities | 94,726 | 43,784 |
Contract liabilities | 59 | 1,411 |
Current portion of long-term debt | 81,306 | 42,089 |
Current portion of operating lease liabilities | 1,742 | 2,470 |
Total current liabilities | 324,023 | 192,303 |
Long-term debt | 611,313 | 378,452 |
Operating lease liabilities | 11,307 | 12,376 |
Other long-term obligations | 134,357 | 18,576 |
Deferred tax liabilities | 108,824 | 71,887 |
Total liabilities | 1,189,824 | 673,594 |
Shareholders' equity | ||
Common shares (authorized – unlimited number of voting common shares; issued and outstanding – December 31, 2023 - 27,827,282 (December 31, 2022 – 27,827,282)) | 229,455 | 229,455 |
Treasury shares (December 31, 2023 - 1,090,187 (December 31, 2022 - 1,406,461)) | (16,165) | (16,438) |
Additional paid-in capital | 20,739 | 22,095 |
Retained earnings | 123,032 | 70,501 |
Accumulated other comprehensive (loss) income | (407) | 306 |
Shareholders' equity | 356,654 | 305,919 |
Total liabilities and shareholders' equity | 1,546,478 | 979,513 |
Contingencies |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common shares, issued (in shares) | 27,827,282 | 27,827,282 |
Common shares, outstanding (in shares) | 27,827,282 | 27,827,282 |
Treasury shares (in shares) | 1,090,187 | 1,406,461 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 957,220 | $ 769,539 |
Cost of sales | 671,684 | 548,723 |
Depreciation | 131,319 | 119,268 |
Gross profit | 154,217 | 101,548 |
General and administrative expenses | 56,844 | 29,855 |
Loss on disposal of property, plant and equipment | 1,659 | 536 |
Operating income | 95,714 | 71,157 |
Equity earnings in affiliates and joint ventures | (25,815) | (37,053) |
Interest expense, net | 36,948 | 24,543 |
Change in fair value of contingent consideration | 4,681 | 0 |
Gain on derivative financial instruments | (6,063) | (778) |
Income before income taxes | 85,963 | 84,445 |
Current income tax expense | 6,841 | 1,627 |
Deferred income tax expense | 15,981 | 15,446 |
Net income | 63,141 | 67,372 |
Unrealized foreign currency translation loss (gain) | 713 | (304) |
Comprehensive income | $ 62,428 | $ 67,676 |
Per share information | ||
Basic net income per share (in CAD per share) | $ 2.38 | $ 2.46 |
Diluted net income per share (in CAD per share) | $ 2.09 | $ 2.15 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Total | Common shares | Treasury shares | Additional paid-in capital | Retained earnings (deficit) | Accumulated other comprehensive income (loss) |
Beginning balance at Dec. 31, 2021 | $ 278,463 | $ 246,944 | $ (17,802) | $ 37,456 | $ 11,863 | $ 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 67,372 | 67,372 | ||||
Unrealized foreign currency translation gain (loss) | 304 | 304 | ||||
Dividends | (8,734) | (8,734) | ||||
Share purchase program | (34,132) | (17,489) | (16,643) | |||
Purchase of treasury shares | (2,030) | (2,030) | ||||
Stock-based compensation | 4,676 | 3,394 | 1,282 | |||
Ending balance at Dec. 31, 2022 | 305,919 | 229,455 | (16,438) | 22,095 | 70,501 | 306 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 63,141 | 63,141 | ||||
Unrealized foreign currency translation gain (loss) | (713) | (713) | ||||
Dividends | (10,610) | (10,610) | ||||
Purchase of treasury shares | (5,991) | (5,991) | ||||
Stock-based compensation | 4,908 | 6,264 | (1,356) | |||
Ending balance at Dec. 31, 2023 | $ 356,654 | $ 229,455 | $ (16,165) | $ 20,739 | $ 123,032 | $ (407) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in CAD per share) | $ 0.40 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net income | $ 63,141 | $ 67,372 |
Adjustments to reconcile net income to cash from operating activities: | ||
Depreciation | 131,319 | 119,268 |
Amortization of deferred financing costs | 1,635 | 1,076 |
Loss on disposal of property, plant and equipment | 1,659 | 536 |
Gain on derivative financial instruments | (6,063) | (778) |
Stock-based compensation expense | 15,828 | 4,780 |
Cash settlement of deferred share unit plan | (7,817) | 0 |
Equity earnings in affiliates and joint ventures | (25,815) | (37,053) |
Dividends and advances received from affiliates and joint ventures | 19,330 | 12,760 |
Deferred income tax expense | 15,981 | 15,446 |
Non-cash changes in fair value of contingent consideration | 8,268 | 0 |
Other adjustments to cash from operating activities | 1,875 | (896) |
Net changes in non-cash working capital | 51,050 | (13,310) |
Total operating activities | 270,391 | 169,201 |
Investing activities: | ||
Acquisition of MacKellar, net of cash acquired | (51,671) | 0 |
Acquisition of ML Northern Services Limited, net of cash acquired | 0 | (2,205) |
Purchase of property, plant and equipment | (202,809) | (111,499) |
Additions to intangible assets | (683) | (3,765) |
Proceeds on disposal of property, plant and equipment | 10,419 | 3,400 |
Net payment on the wind up of affiliates and joint ventures | (387) | 0 |
Net (advances) collections of loans with affiliates and joint ventures | (2,345) | |
Net (advances) collections of loans with affiliates and joint ventures | 16,600 | |
Cash settlement of derivative financial instruments | 2,597 | 0 |
Total investing activities | (244,879) | (97,469) |
Financing activities: | ||
Proceeds from long-term debt | 340,027 | 83,400 |
Repayment of long-term debt | (315,598) | (58,640) |
Financing costs | (5,782) | (318) |
Dividends paid | (10,034) | (7,773) |
Payments of contingent consideration | (10,369) | 0 |
Share purchase program | 0 | (34,132) |
Purchase of treasury shares | (5,991) | (2,030) |
Total financing activities | (7,747) | (19,493) |
Increase in cash | 17,765 | 52,239 |
Effect of exchange rate on changes in cash | 1,705 | 304 |
Cash, beginning of year | 69,144 | 16,601 |
Cash, end of year | $ 88,614 | $ 69,144 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations North American Construction Group Ltd. ("NACG" or the "Company"), was formed under the Canada Business Corporations Act. The Company and its predecessors have been operating continuously since 1953 providing a wide range of mining and heavy construction services to customers in the resource development and industrial construction sectors. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies a) Basis of presentation These consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("US GAAP"). These consolidated financial statements include the accounts of the Company and its wholly-owned incorporated subsidiaries in Canada, the United States and Australia. All significant intercompany transactions and balances are eliminated upon consolidation. The Company also holds ownership interests in other corporations, partnerships and joint ventures. The Company consolidates variable interest entities ("VIE") for which it is considered to be the primary beneficiary as well as voting interest entities in which it has a controlling financial interest as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation, and related standards. Investees and joint ventures over which the Company exercises significant influence are accounted for using the equity method and are included in "investments in affiliates and joint ventures" within the accompanying Consolidated Balance Sheets. During the first quarter of 2023, the Company updated the presentation of finance lease obligations within the Consolidated Balance Sheets to be included in long-term debt. Within the long-term debt note, finance lease obligations, financing obligations, and promissory notes have been combined as equipment financing. Finance lease obligations are the finance lease liabilities recognized in accordance with the Company's lease policy. Financing obligations arise when the Company finances its owned equipment. There has been no change in the Company’s accounting policy for finance lease obligations or change in the recognition or measurement of the related balances now recognized within long-term debt. The change in presentation had no effect on the reported results of operations. The comparative period has been updated to reflect this presentation change. b) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures reported in these consolidated financial statements and accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates and judgments made by management include: • the assessment of the percentage of completion on time-and-materials, unit-price, lump-sum and cost-plus contracts with defined scope (including estimated total costs and provisions for estimated losses) and the recognition of variable revenue from unapproved contract modifications and change orders on revenue contracts; • the determination of whether an acquisition meets the definition of a business combination; • the fair value of the assets acquired and liabilities assumed as part of an acquisition; • the evaluation of whether the Company is a primary beneficiary of an entity or has a controlling interest in an investee and is required to consolidate it; • assumptions used in measuring the fair value of contingent consideration; • assumptions used in impairment testing; and • estimates and assumptions used in the determination of the allowance for credit losses, 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 the estimates of the cost to complete each project. Cost estimates for significant projects are estimated using a detailed cost analysis of project activities 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 costs and profitability that are recognized in the period in which such adjustments are determined. The most significant of these include: • the completeness and accuracy of the original bid; • costs associated with added scope changes; • extended overhead due to owner, weather and other delays; • subcontractor performance issues; • changes in economic indices used for the determination of escalation or de-escalation for contractual rates on long-term contracts; • changes in productivity expectations; • site conditions that differ from those assumed in the original bid; • contract incentive and penalty provisions; • the availability and skill level of workers in the geographic location of the project; and • a change in the availability and proximity of equipment and materials. The foregoing factors as well as the mix of contracts at different margins may cause fluctuations in gross profit between periods. With many projects of varying levels of complexity and size in process at any given time, changes in estimates can offset each other without materially impacting the Company’s profitability. Major changes in cost estimates, particularly in larger, more complex projects, can have a significant effect on profitability. c) Revenue recognition The Company's revenue source falls into one of three categories: construction services, operations support, or equipment and component sales. Construction services are related to mine development or expansion projects and are generally funded from customers' capital budgets. The Company provides construction services under lump-sum, unit-price, time-and materials and cost-plus contracts. When the commercial terms are lump-sum and unit-price, the contract scope and value is typically defined. Time-and-materials and cost-plus contracts are generally undefined in scope and total price. Operations support services revenue is mainly generated under long-term site-services agreements with the customers (master service agreement and multiple use contracts). These agreements clearly define whether commitment to volume or scope of services over the life of the contract is included or excluded. When excluded, work under the agreement is awarded through shorter-term work authorizations under the general terms of the agreement. The Company generally provides operations support services under either time-and-materials or unit-price contra cts depending on factors such as the degree of complexity, the completeness of engineering and the required schedule. Equipment and component sales revenue is generated from our equipment maintenance and rebuild activities, along with our mining component supplier business. The commercial terms for equipment and component sales are generally lump-sum, unit-price, or time-and-materials . Significant estimates are required in the revenue recognition process including assessment of the percentage of completion, identification of performance obligations, and estimation of variable consideration, including the extent of any constraints. The Company’s invoicing frequency and payment terms are in accordance with negotiated customer contracts. Customer invoicing can range between daily and monthly and payment terms generally range between net 15 and net 60 days. The Company does not typically include extended payment terms in its contracts with customers. Under these payment terms, the customer pays progress payments based on actual work or milestones completed. When payment terms do not align with revenue recognition, the variance is recorded to either contract liabilities or contract assets, as appropriate. Customer contracts do not generally include a significant financing component because the Company does not expect the period between customer payment and transfer of control to exceed one year. The Company does not adjust consideration for the effects of a significant financing component if the period of time between the transfer of control and the customer payment is less than one year. The Company accounts for a contract when it has approval and commitments from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and the collectability of consideration is probable. Each contract is evaluated to determine if it includes more than one performance obligation. This evaluation requires significant judgement and the determination that the contract contains more than one performance obligation could change the amount of revenue and profit recorded in a given period. The majority of the Company's contracts with defined scope include one significant integrated service, where the Company is responsible for ensuring the individual goods and services are incorporated into one combined output. Such contracts are accounted for as one performance obligation. When more than one distinct good or service is contracted, the contract is separated into more than one performance obligation and the total transaction price is allocated to each performance obligation based upon stand-alone selling prices. When a stand-alone selling price is not observable, it is estimated using a suitable method. The total transaction price can be comprised of fixed consideration and variable consideration, such as profit incentives, discounts and performance bonuses or penalties. When a contract includes variable consideration, the amount included in the total transaction price is based on the expected value or the mostly likely amount, constrained to an amount that it is probable a significant reversal will not occur. Significant judgement is involved in determining if a variable consideration amount should be constrained. In applying this constraint, the Company considers both the likelihood of a revenue reversal arising from an uncertain future event and the magnitude of the revenue reversal if the uncertain event were to occur or fail to occur. The following circumstances are considered to be possible indicators of significant revenue reversals: • The amount of consideration is highly susceptible to factors outside the Company’s influence, such as judgement of actions of third parties and weather conditions; • The length of time between the recognition of revenue and the expected resolution; • The Company’s experience with similar circumstances and similar customers, specifically when such items have predictive value; • The Company’s history of resolution and whether that resolution includes price concessions or changing payment terms; and • The range of possible consideration amounts. The Company's performance obligations for construction services and operations support are typically satisfied by transferring control over time, for which revenue is recognized using the percentage of completion method, measured by the ratio of costs incurred to date to estimated total costs. For defined scope contracts, the cost-to-cost method faithfully depicts the Company’s performance because the transfer of the asset to the customer occurs as costs are incurred. The costs of items that do not relate to the performance obligation, particularly in the early stages of the contract, are excluded from costs incurred to date. Pre-construction activities, such as mobilization and site setup, are recognized as contract costs on the Consolidated Balance Sheets and amortized over the life of the project. These costs are excluded from the cost-to- cos t calculation. Equipment and component sales are typically satisfied at a point in time, and revenue is recognized when control of the completed asset has been transferred to the customer, along with the cost of goods s old (cost of sales). The Company has elected to apply the ‘as-invoiced’ practical expedient to recognize revenue in the amount to which the Company has a right to invoice for all contracts in which the value of the performance completed to date directly corresponds with the right to consideration. This will be applied to all contracts, where applicable, and the majority of undefined scope work is expected to use this practical expedient. The length of the Company’s contracts varies from less than one year for typical contracts to several years for certain larger contracts. Cost of sales 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 expenses as incurred. If a loss is estimated on an uncompleted contract, a provision is made in the period in which such losses are determined. Changes in project performance, project conditions, and estimated profitability, including those arising from profit incentives, penalty provisions and final contract settlements, may result in revisions to costs and revenue that are recognized in the period in which such adjustments are determined. Once a project is underway, the Company will often experience changes in conditions, client requirements, specifications, designs, materials and work schedules. Generally, a "change order" will be negotiated with the customer to modify the original contract to approve both the scope and price of the change. Occasionally, disagreements arise regarding changes, their nature, measurement, timing and other characteristics that impact costs and revenue under the contract. When a change becomes a point of dispute between the Company and a customer, the Company will assess the legal enforceability of the change to determine if an unapproved contract modification exists. The Company considers a contract modification to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most contract modifications are for goods and services that are not distinct from the existing contract due to the integrated services provided in the context of the contract and are accounted for as part of the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. If a contract modification is not approved by the customer, the associated revenue is treated as variable consideration, subject to constraint. Management estimates variable consideration utilizing estimation methods that best predict the amount of consideration to which the Company will be entitled. 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. In certain instances, the Company’s long-term contracts allow its customers to unilaterally reduce or eliminate scope of work without cause. These instances represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Revenue is measured based on consideration specified in the customer contract, and excludes any amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specified revenue producing transaction, that are collected by the Company for a customer, are excluded from revenue. d) Balance sheet classifications A one-year time period is typically used as the basis for classifying current assets and liabilities. However, there is a possibility that amounts receivable and payable under construction contracts (principally customer and supplier holdbacks) may extend beyond one year. e) Cash Cash includes cash on hand and bank balances net of outstanding cheques. f) Accounts receivable and contract assets Accounts receivable are recorded when the Company has an unconditional right to consideration arising from performance of contracts with customers. Accounts receivable may be comprised of amounts billed to customers and amounts that have been earned but have not yet been billed. Such unbilled but earned amounts generally arise when a billing period ends subsequent to the end of the reporting period. When this occurs, revenue equal to the earned and unbilled amount is accrued. Such accruals are classified as accounts receivable on the balance sheet, even though they are not yet billed, as they represent consideration for work that has been completed prior to the period end where the Company has an unconditional right to consideration. Contract assets include unbilled amounts representing revenue recognized from work performed where the Company does not yet have an unconditional right to compensation. These balances generally relate to (i) revenue accruals on contracts where the percentage of completion method of revenue recognition requires an accrual over what has been billed and (ii) revenue recognized from variable consideration related to unpriced contract modifications. The Company records allowance for credit losses using the expected credit loss model upon the initial recognition of financial assets. The estimate of expected credit loss considers historical credit loss information that is adjusted for current economic and credit conditions. Bad debt expense is charged to cost of sales in the Consolidated Statements of Operations and Comprehensive Income in the period the allowance is recognized. The counterparties to the majority of the Company's financial assets are major oil and coal producers with a long history of no credit losses. 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. Information about the Company’s exposure to credit risks and impairment losses for trade and other receivables is included in note 15(f). g) Contract costs The Company occasionally incurs costs to obtain contracts (reimbursable bid costs) and to fulfill contracts (fulfillment costs). If these costs meet certain criteria, they are capitalized as contract costs, included within other assets on the Consolidated Balance Sheets. Capitalized costs are amortized based on the transfer of goods or services to which the assets relate and are included in cost of sales. Reimbursable bid costs meet the criteria for capitalization when these costs will be reimbursed by the owner regardless of the outcome of the bid. Generally, this occurs when the Company has been selected as the preferred bidder for a project. The Company recognizes reimbursable bid costs as an expense when incurred if the amortization period of the asset that the entity would have otherwise recognized is one year or less. Costs to fulfill a contract meet the criteria for capitalization if they relate directly to a specifically identifiable contract, they generate or enhance resources that will be used to satisfy future performance obligations and if the costs are expected to be recovered. The costs that meet this criterion are often mobilization and site set-up costs. Contract costs are recorded within other assets on the Consolidated Balance Sheets. h) Remaining performance obligations Remaining performance obligations represents the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. Certain of the Company's long-term contracts can allow customers to unilaterally reduce or eliminate the scope of the contracted work without cause. These long-term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Excluded from this disclosure are amounts where the Company recognizes revenue as-invoiced (note 5(d)). Remaining performance obligations are recorded within contract assets and contract liabilities on the Consolidated Balance Sheets. i) Contract liabilities Contract liabilities consist of advance payments and billings in excess of costs incurred and estimated earnings on uncompleted contracts. Long-term contract liabilities (included in other long-term obligations) consists of upfront payments for long-term contracts to assist with operations scaling. j) Inventories Inventories are carried at the lower of cost and net realizable value, and consist primarily of repair parts, parts and components held for resale, tires and track frames, fuel and lubricants, and customer rebuild work in progress. Cost is determined using the weighted-average method. k) Property, plant and equipment Property, plant and equipment are recorded at cost. Equipment under finance lease is recorded at the present value of minimum lease payments at the inception of the lease. Major components of heavy construction equipment in use such as engines and drive trains are recorded separately. Depreciation is not recorded until an asset is available for and in 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 - 120,000 hours Major component parts in use Units of production 2,500 - 70,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 4 - 10 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation The costs for periodic repairs and maintenance are expensed to the extent the expenditures serve only to restore the assets to their normal operating condition without enhancing their service potential or extending their useful lives. l) Goodwill Goodwill represents the excess of consideration over the fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed in a business combination. Goodwill is reviewed annually on October 1 st for impairment or more frequently when there is an indication of potential impairment. Impairment is tested at the reporting unit level by comparing the reporting unit's carrying amount to its fair value. 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. The annual test was performed on the acquired goodwill with no impairment identified. The carrying amount of Goodwill can fluctuate due to changes in foreign exchange rates impacting the balances recorded within entities using a currency other than CAD. Goodwill is recorded within other assets on the Consolidated Balance Sheets. m) Intangible assets Acquired intangible assets with finite lives are recorded at historical cost net of accumulated amortization and accumulated impairment losses, if any. The cost of intangible assets acquired in an asset acquisition are recorded at cost based upon relative fair value as at the acquisition date. Costs incurred to increase the future benefit of intangible assets are capitalized. Intangible assets with definite lives are amortized over their estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at the end of each reporting period. Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer relationship Straight-line 4 years n) Impairment of long-lived assets Long-lived assets or asset groups held and used including property, plant and equipment and identifiable intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value, which is charged to the Consolidated Statements of Operations and Comprehensive Income. 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. At each reporting period, the Company reviews the carrying value of its long-lived assets for indications of impairment. At December 31, 2023, there were no impairment indicators identified, as there had been no material declines in the operating environment or expected financial results. o) Assets held for sale Long-lived assets are classified as held for sale when certain criteria are met, which include: • management, having the authority to approve the action, commits to a plan to sell the assets; • the assets are available for immediate sale in their present condition; • an active program to locate buyers and other actions to sell the assets have been initiated; • the sale of the assets is probable and their transfer is expected to qualify for recognition as a completed sale within one year; • the assets are being actively marketed at reasonable prices in relation to their fair value; and • it is unlikely that significant changes will be made to the plan to sell the assets or that the plan will be withdrawn. Assets to be disposed of by sale are reported at the lower of their carrying amount or estimated fair value less costs to sell and are disclosed separately on the Consolidated Balance Sheets. These assets are not depreciated. Equipment disposal decisions are made using an approach in which a target life is set for each type of equipment. The target life is based on the manufacturer’s recommendations and the Company’s past experience in the various operating environments. Once a piece of equipment reaches its target life it is evaluated to determine if disposal is warranted based on its expected operating cost and reliability in its current state. If the expected operating cost exceeds the target operating cost for the fleet or if the expected reliability is lower than the target reliability of the fleet, the unit is considered for disposal. Expected operating costs and reliability are based on the past history of the unit and experience in the various operating environments. Once the Company has determined that the equipment will be disposed, and the criteria for assets held for sale are met, the unit is recorded in assets held for sale at the lower of depreciated cost or net realizable value. p) Foreign currency translation The functional currency of the Company is Canadian Dollars. Transactions recorded within these subsidiaries that are denominated in foreign currencies are recorded at the rate of exchange on the transaction date. Monetary assets and liabilities within these subsidiaries denominated in foreign currencies are translated into Canadian Dollars at the rate of exchange prevailing at the balance sheet date. The resulting foreign exchange gains and losses are included in the determination of earnings and included within general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. Accounts of the Company's Australia-based subsidiaries, which have Australian Dollar functional currency, and US-based subsidiaries, which have US Dollar functional currency, are translated into Canadian Dollars using the current rate method. Assets and liabilities are translated at the rate of exchange in effect at the balance sheet date, and revenue and expense items are translated at the average rate of exchange for the period. The resulting unrealized exchange gains and losses from these translation adjustments are included as a separate component of shareholders’ equity in Accumulated Other Comprehensive Income. The effect of exchange rate changes on cash balances held in foreign currencies is separately reported as part of the reconciliation of the change in cash and for the period. q) 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. Transfers between levels of the fair value hierarchy are deemed to have occurred at the date the event or change in circumstance causing the transfer occurred. 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. 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 and Comprehensive Income. s) Stock-based compensation The Company has a Restricted Share Unit ("RSU") Plan which is described in note 20(a). 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 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 20(b). 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 criteria include the passage of time and, for awards prior to 2022, is based upon the improvement of total shareholder return ("TSR") as compared to a defined Canadian company peer group. For awards in 2022 and later, performance is based equally on four criteria: (a) improvement of TSR as compared to a defined group consisting of Canadian and US public companies and relevant S&P/TSX small-cap subset indexes; (b) adjusted earnings before interest and ta |
Recent accounting pronouncement
Recent accounting pronouncements not yet adopted | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted a) Joint venture formations In August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Venture Formations. This accounting standard update was issued to create new requirements for valuing contributions made to a joint venture upon formation. This standard is effective January 1, 2025, with early adoption permitted. The Company is assessing the impact the adoption of this standard may have on its consolidated financial statements. b) Segment reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This accounting standard update was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This standard is effective for the fiscal year beginning January 1, 2024. The Company is assessing the impact the adoption of this standard may have on its consolidated financial statements. c) Income taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This accounting standard update was issued to increase transparency by improving income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. This standard is effective for the fiscal year beginning January 1, 2025, with early adoption permitted. The Company is assessing the impact the adoption of this standard may have on its consolidated financial statements. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable Note December 31, 2023 December 31, 2022 Trade 9 $ 65,386 $ 39,625 Holdbacks 363 372 Accrued trade receivables 16,556 33,207 Contract receivables $ 82,305 $ 73,204 Other 15,550 10,607 $ 97,855 $ 83,811 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue a) Disaggregation of revenue Year ended December 31, 2023 2022 Revenue by source Operations support services $ 886,963 $ 688,734 Equipment and component sales 57,822 48,728 Construction services 12,435 32,077 $ 957,220 $ 769,539 By commercial terms Time-and-materials $ 575,608 $ 523,468 Unit-price 363,979 234,047 Lump-sum 17,633 12,024 $ 957,220 $ 769,539 Revenue recognition method As-invoiced $ 600,744 $ 522,415 Cost-to-cost percent complete 298,654 198,396 Point-in-time 57,822 48,728 $ 957,220 $ 769,539 b) Contract balances Note December 31, 2023 December 31, 2022 Contract assets $ 35,027 $ 15,802 Contract liabilities 59 1,411 Long-term contract liabilities 14 16,114 — Contract assets include unbilled amounts representing revenue recognized from work performed where the Company does not yet have an unconditional right to compensation. These balances generally relate to revenue accruals on contracts where the percentage of completion method of revenue recognition requires an accrual over what has been billed and revenue recognized from variable consideration related to unapproved contract modifications. Contract liabilities consist of advance payments and billings in excess of costs incurred and estimated earnings on uncompleted contracts. Long-term contract liabilities (included in other long-term obligations) includes upfront payments for long-term contracts to assist with operations scaling. The Company recognized revenue of $1,411 in 2023 that was included in the contract liability balance as of December 31, 2022 ($3,349 in 2022 that was included in the contract balance as of December 31, 2021). c) Performance obligations The following table provides information about revenue recognized from performance obligations that were satisfied (or partially satisfied) in previous periods: Year ended December 31, 2023 2022 Revenue recognized (derecognized) $ 2,598 $ (1,201) These amounts relate to cumulative catch-up adjustments arising from changes in estimated cost of sales on cost-to-cost percent complete jobs and final settlement of constrained variable consideration. d) Transaction price allocated to the remaining performance obligations The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period is $22,797, all of which is expected to be recognized in 2024. Included is all expected consideration from contracts with customers, excluding amounts that are recognized using the as-invoiced method and any constrained amounts of revenue. e) Unapproved contract modifications The Company recognized revenue from variable consideration related to unapproved contract modifications for the year ended December 31, 2023, of $8,032 (year ended December 31, 2022 - $nil). The Company has recorded amounts in current assets related to uncollected consideration from revenue recognized on unapproved contract modifications as at December 31, 2023, of $9,482 (December 31, 2022 - $1,487). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, 2023 December 31, 2022 Repair parts $ 41,358 $ 26,036 Tires and track frames 6,478 3,372 Fuel and lubricants 1,941 2,237 Parts and supplies 49,777 31,645 Parts, supplies and components for equipment rebuilds 13,898 14,899 Customer rebuild work in process 1,287 3,354 $ 64,962 $ 49,898 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment December 31, 2023 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 503,359 $ 133,448 $ 369,911 Major component parts in use 747,036 207,969 539,067 Other equipment 49,207 33,952 15,255 Licensed motor vehicles 20,051 7,207 12,844 Office and computer equipment 10,133 6,336 3,797 Buildings 45,681 5,231 40,450 Capital inventory and capital work in progress 84,555 — 84,555 Land 10,472 — 10,472 1,470,494 394,143 1,076,351 Assets under finance lease Heavy equipment 64,691 19,435 45,256 Major component parts in use 28,514 9,580 18,934 Other equipment 37 12 25 Licensed motor vehicles 2,555 175 2,380 95,797 29,202 66,595 Total property, plant and equipment $ 1,566,291 $ 423,345 $ 1,142,946 December 31, 2022 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 368,318 $ 123,695 $ 244,623 Major component parts in use 388,169 163,124 225,045 Other equipment 40,752 30,769 9,983 Licensed motor vehicles 12,109 6,800 5,309 Office and computer equipment 7,510 5,669 1,841 Buildings 29,725 4,489 25,236 Capital inventory and capital work in progress 46,050 — 46,050 Land 10,472 — 10,472 903,105 334,546 568,559 Assets under finance lease Heavy equipment 75,750 28,265 47,485 Major component parts in use 40,406 22,264 18,142 Other equipment 4,238 1,814 2,424 Licensed motor vehicles 9,669 469 9,200 130,063 52,812 77,251 Total property, plant and equipment $ 1,033,168 $ 387,358 $ 645,810 |
Finance and operating leases
Finance and operating leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Finance and operating leases | Finance and operating leases As a lessee, the Company has finance and operating leases for heavy equipment, shop facilities, vehicles and office facilities. These leases have terms of 1 to 15 years, with options to extend on certain leases for up to five years. The Company generates operating lease income from the sublease of certain office facilities and heavy equipment rentals. a) Minimum lease payments and receipts The future minimum lease payments and receipts from non-cancellable leases as at December 31, 2023, for the periods shown are as follows: Payments Receipts For the year ending December 31, Finance Leases Operating Leases Operating leases 2024 $ 25,697 $ 2,307 $ 683 2025 14,307 1,727 — 2026 9,721 1,579 — 2027 6,094 1,381 — 2028 and thereafter 2,081 9,358 — Total minimum lease payments $ 57,900 $ 16,352 $ 683 Less: amount representing interest (5,049) (3,303) Carrying amount of minimum lease payments $ 52,851 $ 13,049 Less: current portion (23,691) (1,742) Long term $ 29,160 $ 11,307 b) Lease expenses and income Year ended December 31, 2023 2022 Short-term lease expense $ 15,305 $ 23,003 Operating lease expense 3,007 4,588 Operating lease income (6,182) (6,831) During the year ended December 31, 2023, depreciation of equipment under finance leases was $11,194 (December 31, 2022 - $18,573). c) Supplemental information December 31, 2023 December 31, 2022 Weighted-average remaining lease term (in years): Finance leases 2.6 1.9 Operating leases 10.3 10.2 Weighted-average discount rate: Finance leases 5.19 % 3.53 % Operating leases 4.59 % 4.64 % |
Finance and operating leases | Finance and operating leases As a lessee, the Company has finance and operating leases for heavy equipment, shop facilities, vehicles and office facilities. These leases have terms of 1 to 15 years, with options to extend on certain leases for up to five years. The Company generates operating lease income from the sublease of certain office facilities and heavy equipment rentals. a) Minimum lease payments and receipts The future minimum lease payments and receipts from non-cancellable leases as at December 31, 2023, for the periods shown are as follows: Payments Receipts For the year ending December 31, Finance Leases Operating Leases Operating leases 2024 $ 25,697 $ 2,307 $ 683 2025 14,307 1,727 — 2026 9,721 1,579 — 2027 6,094 1,381 — 2028 and thereafter 2,081 9,358 — Total minimum lease payments $ 57,900 $ 16,352 $ 683 Less: amount representing interest (5,049) (3,303) Carrying amount of minimum lease payments $ 52,851 $ 13,049 Less: current portion (23,691) (1,742) Long term $ 29,160 $ 11,307 b) Lease expenses and income Year ended December 31, 2023 2022 Short-term lease expense $ 15,305 $ 23,003 Operating lease expense 3,007 4,588 Operating lease income (6,182) (6,831) During the year ended December 31, 2023, depreciation of equipment under finance leases was $11,194 (December 31, 2022 - $18,573). c) Supplemental information December 31, 2023 December 31, 2022 Weighted-average remaining lease term (in years): Finance leases 2.6 1.9 Operating leases 10.3 10.2 Weighted-average discount rate: Finance leases 5.19 % 3.53 % Operating leases 4.59 % 4.64 % |
Investments in affiliates and j
Investments in affiliates and joint ventures | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investments in affiliates and joint ventures | Investments in affiliates and joint ventures The following is a summary of the Company's interests in its various affiliates and joint ventures, which it accounts for using the equity method: Affiliate or joint venture name: Interest Nuna Group of Companies ("Nuna") Nuna Logistics Ltd. 49 % North American Nuna Joint Venture 50 % Nuna East Ltd. 37 % Nuna Pang Contracting Ltd. 37 % Nuna West Mining Ltd. 49 % Mikisew North American Limited Partnership ("MNALP") 49 % Fargo joint ventures "Fargo" ASN Constructors ("ASN") 30 % Red River Valley Alliance LLC ("RRVA") 15 % NAYL Realty Inc. 49 % BNA Remanufacturing Limited Partnership 50 % Barrooghumba WPH Pty Ltd. 50 % Ngaliku WPH Pty Ltd. 50 % Dene North Site Services Partnership (i) 49 % (i) As of January 1, 2023, the Dene North Site Services Partnership has been dissolved. The following table summarizes the movement in the investments in affiliates and joint ventures balance during the year: December 31, 2023 December 31, 2022 Balance, beginning of the year $ 75,637 $ 55,974 Additions arising from the acquisition of MacKellar 85 — Share of net income 25,815 37,053 Dividends and advances received from affiliates and joint ventures (21,543) (12,760) Intercompany eliminations and other 1,441 (4,630) Balance, end of the year $ 81,435 $ 75,637 Barrooghumba WPH Pty Ltd. and Ngaliku WPH Pty Ltd. have been added through the acquisition of MacKellar (note 21). Both entities are established joint venture operations of MacKellar, and they continue in their operations following the acquisition. On January 1, 2023, the Dene North Site Services ("DNSS") partnership was dissolved and commenced wind up activities. The Company purchased equipment from the partnership for $2,600, offset by the receipt of final cash distributions of $2,213, resulting in a net cash outflow of $387. a) Affiliate and joint venture condensed financial data The financial information for the Company's share of the investments in affiliates and joint ventures accounted for using the equity method is summarized as follows: Balance Sheets December 31, 2023 Nuna MNALP Fargo Other entities Total Assets Cash $ 9,944 $ 4,184 $ 87,418 $ 222 $ 101,768 Other current assets 34,937 36,060 4,556 4,593 80,146 Non-current assets 23,884 37,103 172,818 10,434 244,239 Total assets $ 68,765 $ 77,347 $ 264,792 $ 15,249 $ 426,153 Liabilities Contract liabilities $ 7,817 $ — $ 76,481 $ 52 $ 84,350 Other current liabilities (excluding current portion of long-term debt) 5,145 29,216 33,122 1,871 69,354 Long-term debt (including current portion) 9,631 36,596 132,818 6,221 185,266 Non-current liabilities 4,985 — 589 174 5,748 Total liabilities $ 27,578 $ 65,812 $ 243,010 $ 8,318 $ 344,718 Net investments in affiliates and joint ventures $ 41,187 $ 11,535 $ 21,782 $ 6,931 $ 81,435 December 31, 2022 Nuna MNALP Fargo Other entities Total Assets Cash $ 6,559 $ 1,467 $ 81,326 $ 800 $ 90,152 Other current assets 82,147 39,106 1,776 3,495 126,524 Non-current assets 18,422 29,143 93,007 12,510 153,082 Total assets $ 107,128 $ 69,716 $ 176,109 $ 16,805 $ 369,758 Liabilities Contract liabilities $ 8,788 $ — $ 66,490 $ 4 $ 75,282 Other current liabilities (excluding current portion of long-term debt) 21,858 38,397 11,967 1,415 73,637 Long-term debt (including current portion) 17,900 26,180 89,295 5,906 139,281 Non-current liabilities 4,778 — 612 531 5,921 Total liabilities $ 53,324 $ 64,577 $ 168,364 $ 7,856 $ 294,121 Net investments in affiliates and joint ventures $ 53,804 $ 5,139 $ 7,745 $ 8,949 $ 75,637 Included within our portion of Nuna's December 31, 2023, current assets are contract assets of $8,701 from variable consideration related to unapproved contract modifications (December 31, 2022 - $1,391). Statements of Operations Year ended December 31, 2023 Nuna MNALP Fargo Other entities Total Revenue $ 165,741 $ 395,040 $ 117,543 $ 7,975 $ 686,299 Gross profit 9,622 13,954 25,353 709 49,638 Income (loss) before taxes 1,246 10,869 15,344 (639) 26,820 Net income (loss) $ 1,098 $ 10,869 $ 14,522 $ (674) $ 25,815 Year ended December 31, 2022 Nuna MNALP Fargo Other entities Total Revenue $ 213,745 $ 330,259 $ 40,598 $ 11,431 $ 596,033 Gross profit 30,667 10,216 6,575 2,123 49,581 Income before taxes 21,741 8,825 7,049 1,881 39,496 Net income $ 19,298 $ 8,825 $ 7,049 $ 1,881 $ 37,053 b) Related parties The following table provides the material aggregate outstanding balances with affiliates and joint ventures. Accounts payable and accrued liabilities due to joint ventures and affiliates do not bear interest, are unsecured and without fixed terms of repayment. Accounts receivable from certain joint ventures and affiliates bear interest at various rates, and all other accounts receivable amounts are non-interest bearing. December 31, 2023 December 31, 2022 Accounts receivable $ 41,157 $ 65,294 Contract assets 12,019 — Other assets 350 2,444 Accounts payable and accrued liabilities 15,087 13,773 The Company enters into transactions with a number of its joint ventures and affiliates that involve providing services primarily consisting of subcontractor services, equipment rental revenue and sales of equipment and components. These transactions were conducted in the normal course of operations, which were established and agreed to as consideration by the related parties. For the years ended December 31, 2023 and 2022, revenue earned from these services was $773,512 and $666,069, respectively. The majority of services are completed through the Mikisew North American Limited Partnership ("MNALP") which performs the role of contractor and subcontracts work to the Company. Accounts receivable balances from MNALP are recorded when MNALP invoices the external customer and are settled when MNALP receives payment. At December 31, 2023, MNALP had recorded accounts receivable of $61,111 on its balance sheet (December 31, 2022 - $66,680). |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Other assets Note December 31, 2023 December 31, 2022 Deferred financing costs $ 5,891 $ 887 Goodwill 526 543 Loans to affiliates and joint ventures 350 2,444 Derivative financial instruments 15(b) 229 778 Long-term prepaid lease payments 148 1,085 Deferred lease inducement asset — 71 $ 7,144 $ 5,808 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income tax expense 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, 2023 2022 Income before income taxes $ 85,963 $ 84,445 Equity earnings in affiliates and joint ventures (25,815) (37,053) $ 60,148 $ 47,392 Tax rate 23.00 % 23.00 % Expected expense $ 13,834 $ 10,900 Adjustments related to: Stock-based compensation 1,092 1,090 Foreign tax rate differential 2,164 183 Tax on equity earnings in affiliates and joint ventures 5,936 5,162 Other (204) (262) Total income tax expense $ 22,822 $ 17,073 Current income tax expense $ 6,841 $ 1,627 Deferred income tax expense 15,981 15,446 Total income tax expense $ 22,822 $ 17,073 The deferred tax assets and liabilities are summarized below: December 31, 2023 December 31, 2022 Deferred tax assets: Non-capital and net capital loss carryforwards $ 26,713 $ 33,630 Finance lease obligations 23,116 17,981 Operating lease obligations 6,161 3,415 Stock-based compensation 4,913 4,200 Transaction costs 1,858 — Other 10,051 2,241 $ 72,812 $ 61,467 Deferred tax liabilities: Contract assets $ 5,693 $ 3,199 Property, plant and equipment 168,813 123,274 Other 7,130 6,494 $ 181,636 $ 132,967 Net deferred income tax liability $ 108,824 $ 71,500 Classified as: December 31, 2023 December 31, 2022 Deferred tax asset $ — $ 387 Deferred tax liability (108,824) (71,887) $ (108,824) $ (71,500) The Company and its subsidiaries file income tax returns in the Canadian federal jurisdiction, multiple Canadian provincial jurisdictions, the U.S. federal jurisdiction, three U.S state jurisdictions and the Australia federal jurisdiction. At December 31, 2023, the Company has non-capital loss carryforwards of $116,143, which expire as follows: December 31, 2023 2026 $ 3 2027 278 2032 175 2033 9,095 2037 5 2039 118 2040 82,668 2041 16,816 2042 3,677 2043 3,308 $ 116,143 |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued liabilities | Accrued liabilities Note December 31, 2023 December 31, 2022 Payroll liabilities $ 28,524 $ 16,082 Current portion of DSU liabilities 20(c) — 5,099 Income and other taxes payable 26,515 8,189 Loans from affiliates and joint ventures 11,387 — Obligation related to MacKellar acquisition 20,070 — Obligation related to DGI acquisition 2,431 1,720 Deferred consideration related to ML Northern acquisition 21(b) — 5,002 Dividends payable 16(d) 2,674 2,098 Other 3,125 5,594 $ 94,726 $ 43,784 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt Note December 31, 2023 December 31, 2022 Credit Facility 13(a) $ 317,488 $ 180,000 Convertible debentures 13(b) 129,750 129,750 Equipment financing 13(c) 220,466 85,931 Mortgage 13(f) 28,429 29,231 Unamortized deferred financing costs 13(g) (3,514) (4,371) $ 692,619 $ 420,541 Less: current portion of long-term debt (81,306) (42,089) $ 611,313 $ 378,452 The aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2023, are: $83.0 million in 2024, $64.3 million in 2025, $412.1 million in 2026, $28.8 million in 2027 and $107.8 million in 2028 and thereafter. a) Credit Facility On October 3, 2023, the Company entered into an Amended and Restated Credit Agreement (the "Credit Facility") with a banking syndicate. On October 26, 2023, the Company exercised the accordion feature to increase the size of the tranches as included in the amended agreement. The amended agreement matures on October 3, 2026, with an option to extend on an annual basis, subject to certain conditions. The agreement is comprised solely of a revolving facility that includes a Canadian dollar tranche of $280.0 million and an Australian dollar tranche of A$220.0 million, totaling $478.0 million of lending capacity using the exchange rate in effect as at December 31, 2023. The Credit Facility permits finance lease obligations to a limit of $350.0 million and certain other borrowings outstanding to a limit of $20.0 million. The permitted amount of $350.0 million for finance lease obligations includes guarantees provided by the Company to certain joint ventures. During the year ended December 31, 2023, financing costs of $5.8 million were incurred in connection with the amended Credit Facility and are recorded in other assets on the Consolidated Balance Sheets. As at December 31, 2023, there was $31.3 million (December 31, 2022 - $32.0 million) in issued letters of credit under the Credit Facility and the unused borrowing availability was $129.3 million (December 31, 2022 - $88.0 million). As at December 31, 2023, there was an additional $60.1 million in borrowing availability under finance lease obligations (December 31, 2022 - $46.6 million). Borrowing availability under finance lease obligations considers the current and long-term portion of finance lease obligations and financing obligations, including the finance lease obligations for the joint ventures that the Company guarantees. The Credit Facility has two financial covenants that must be tested quarterly on a trailing four-quarter basis. As at December 31, 2023, the Company was in compliance with its financial covenants. • The first covenant is the Total Debt to Bank EBITDA Ratio. ◦ "Total Debt" is defined as the sum of the outstanding principal balance (current and long-term portions) of: (i) finance leases; (ii) borrowings under our credit facilities (excluding outstanding Letters of Credit); (iii) mortgage; (iv) promissory notes; (v) financing obligations; and (vi) vendor financing, excluding convertible debentures. ◦ "Bank EBITDA" is defined as earnings before interest, taxes, depreciation and amortization, excluding the effects of unrealized foreign exchange gain or loss, realized and unrealized gain or loss on derivative financial instruments, cash and non-cash stock-based compensation expense, gain or loss on disposal of property, plant and equipment, acquisition costs, and certain other non-cash items included in the calculation of net income. ◦ The Total Debt to Bank EBITDA Ratio must be less than or equal to 3.5:1. • The second covenant is the Fixed Charge Coverage Ratio which is defined as Bank EBITDA less maintenance capital expenditures, cash distributions (dividends, share buybacks, etc.), and cash taxes compared to Fixed Charges. ◦ "Fixed Charges" is defined as cash interest and all scheduled principal debt repayments. ◦ The Fixed Charge Coverage Ratio is to be maintained at a ratio greater than 1.1:1. The Credit Facility bears interest at Canadian prime rate, U.S. Dollar Base Rate, Australian Bank Bill Swap Reference Rate ("BBSY"), Canadian bankers’ acceptance rate or the Secured Overnight Financing Rate ("SOFR") (all such terms as used or defined in the Credit Facility), plus applicable margins. The Company is also subject to non-refundable standby fees, 0.40% to 0.70% depending on the Company's Total Debt to Bank EBITDA Ratio. The Credit Facility is secured by a lien on all of the Company's existing and after-acquired property. The Company acts as a guarantor for drawn amounts under revolving equipment lease credit facilities which have a combined capacity of $110.0 million for Mikisew North American Limited Partnership ("MNALP"), an affiliate of the Company. This equipment lease credit facility will allow MNALP to avail the credit through a lease agreement and/or equipment finance contract with appropriate supporting documents. As at December 31, 2023, the Company has provided guarantees on this facility of $74.7 million. At this time, there have been no instances or indication that payments will not be made by MNALP. Therefore, no liability has been recorded related to this guarantee. b) Convertible debentures December 31, 2023 December 31, 2022 5.50% convertible debentures $ 74,750 $ 74,750 5.00% convertible debentures 55,000 55,000 $ 129,750 $ 129,750 The terms of the convertible debentures are summarized as follows: Date of issuance Maturity Conversion price Debt issuance costs 5.50% convertible debentures June 1, 2021 June 30, 2028 $ 24.50 $ 3,531 5.00% convertible debentures March 20, 2019 March 31, 2026 $ 25.60 $ 2,691 Interest on the 5.50% convertible debentures is payable semi-annually in arrears on June 30 and December 31 of each year. Interest on the 5.00% convertible debentures is payable semi-annually on March 31 and September 30 of each year. The conversion price is adjusted upon certain events, including: the subdivision or consolidation of the outstanding common shares, issuance of certain options, rights or warrants, distribution of cash dividends in an amount greater than $0.192 for the 5.50% convertible debentures or $0.12 per common share for the 5.00% convertible debentures, and other reorganizations such as amalgamations or mergers. The 5.50% convertible debentures are not redeemable prior to June 30, 2024, except under certain exceptional circumstances. On and after June 30, 2024, and prior to June 30, 2026, the debentures may be redeemed at the option of the Company at the redemption price equal to the principal amount of the debentures plus accrued and unpaid interest thereon up to but excluding the date set for redemption provided, among other things, the current market price is at least 125% of the conversion price on the date on which notice of the redemption is given. On or after June 30, 2026, the debentures may be redeemed at the option of the Company at the redemption price equal to the principal amount of the debentures plus accrued and unpaid interest. Both the 5.00% convertible debentures and the 5.50% convertible debentures are redeemable under certain conditions after a change in control has occurred. If a change in control occurs, we are 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. The 5.00% convertible debentures are otherwise not redeemable by the Company. c) Equipment financing Note December 31, 2023 December 31, 2022 Finance lease obligations 8 $ 52,851 $ 41,804 Financing obligations 13(d) 162,266 32,889 Promissory notes 13(e) 5,349 11,238 Equipment financing $ 220,466 $ 85,931 Year ended, December 31, 2023 December 31, 2022 Additions Payments Change in foreign exchange rates Additions Payments Finance lease obligations $ 58,675 $ (48,601) $ 973 $ 14,526 $ (27,443) Financing obligations 233,668 (110,306) 6,015 — (15,056) Promissory notes — (5,889) — 3,400 (5,372) $ 292,343 $ (164,796) $ 6,988 $ 17,926 $ (47,871) The Company assumed $30,516 and $173,430 of finance lease obligations and financing obligations, respectively, upon the MacKellar acquisition (note 21(a)). Subsequent to the acquisition, the Company paid out $18,509 and $73,657 of the acquired financing lease obligations and financing obligations, respectively. d) Financing obligations During the year ended December 31, 2023, the Company recorded new financing obligations of $233,668. Of the new financing obligations, $173,430 was assumed upon the MacKellar acquisition (note 21(a)) and $73,657 was extinguished subsequent to the acquisition. The remaining financing contracts assumed upon acquisition expire between March 2024 and October 2028 with annual interest rates between 1.99% and 8.11%. Other new financing contracts expire in September 2026. The Company is required to make monthly payments over the life of the contracts with annual interest rates between 6.72% and 7.17%. The financing obligations are secured by the corresponding property, plant and equipment. During the year ended December 31, 2022, the Company recorded no new financing obligations. e) Promissory notes During the year ended December 31, 2023, the Company recorded no new promissory notes. During the year ended December 31, 2022, the Company recorded a new equipment promissory note of $3.4 million. The contract expires on May 13, 2026. The Company is required to make monthly payments over the life of the contract with an annual interest rate of 5.85%. The promissory note is secured by the corresponding property, plant and equipment. f) Mortgage The mortgage has a maturity date of November 1, 2046, and bears variable interest at a floating base rate of 5.60% minus a variance of 2.20%, equal to 3.40%. The mortgage is secured by the corresponding land and building in Acheson, Alberta. g) Deferred financing costs December 31, 2023 December 31, 2022 Cost $ 6,336 $ 6,336 Accumulated amortization 2,822 1,965 $ 3,514 $ 4,371 |
Other long term obligations
Other long term obligations | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term obligations | Other long-term obligations Note December 31, 2023 December 31, 2022 DSU liabilities 20(c) $ 21,361 $ 13,159 Long-term contract liabilities 5(b) 16,114 — Obligation related to MacKellar acquisition 93,356 — Obligation related to DGI acquisition — 2,142 Other 3,526 3,275 $ 134,357 $ 18,576 |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2023 | |
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 are used to determine the fair value of the Company’s financial instruments. All methods of fair value measurement result in a general approximation of fair value and such value may never actually be realized. The fair values of the Company’s cash, accounts receivable, accounts payable, and accrued liabilities approximate their carrying amounts due to the nature of the instrument or the relatively short periods to maturity for the instruments. The Credit Facility has a carrying value that approximates the fair value due to the floating rate nature of the debt . The promissory notes have a carrying value that is not materially different than their fair value due to similar instruments bearing similar interest rates. Financial instruments with carrying amounts that differ from their fair values are as follows: December 31, 2023 December 31, 2022 Fair Value Hierarchy Level Carrying Fair Carrying Fair Convertible debentures Level 1 129,750 160,072 129,750 131,795 Financing obligations Level 2 162,266 159,900 32,889 30,783 Mortgage Level 2 28,429 22,780 29,231 24,329 Contingent consideration The Company uses projected financial results to value the anticipated future earn-out payments. The estimated liability is based on forecasted information and as such, could result in a range of outcomes. The impact of a reasonably possible change of +/- 10% in forecasted net income on the fair value of the earn-out obligation is estimated to be between a $7,970 decrease to a $7,970 increase on the fair value as at December 31, 2023. Reconciliation of Level 3 recurring fair value measurements: December 31, 2023 December 31, 2022 Balance, beginning of the year $ 3,862 $ 4,669 Additions to level 3 114,096 — Changes in fair value recognized in earnings 4,681 292 Changes in foreign exchange rates 3,587 — Payments (10,369) (1,099) Balance, end of the year $ 115,857 $ 3,862 The contingent payment is based on forecasted performance for a specific customer which is expected to be paid in full. The deferred consideration is an even payout of vendor provided debt that was calculated on unaudited financial statements at acquisition and is not dependent on any future events. The contingent payment, earn-out amounts, and deferred consideration liabilities are measured at fair value by discounting estimated future payments to their net present value using Level 3 inputs. The Company has classified the contingent consideration as Level 3 due to the lack of relevant observable market data over fair value inputs. The Company believes the discount rates used to discount the contingent consideration reflect market participant assumptions. Changes in estimated fair values are recorded in the Consolidated Statements of Operations and Comprehensive Income. b) Swap agreement On October 5, 2022, the Company entered into a swap agreement on its common shares with a financial institution for investment purposes. As at December 31, 2023, the Company recognized a realized gain of $6,612 (December 31, 2022 - $nil) and an unrealized gain of $229 (December 31, 2022 - $778) on this agreement based on the difference between the par value of the converted shares and the expected price of the Company's shares at contract maturity. The agreement is for 200,678 shares at a par value of $14.38, and an additional 458,400 shares at a par value of $18.94. The fair value of the shares as at December 31, 2023, was $27.65. The fair value of the unrealized shares is recorded in other assets (note 10) on the Consolidated Balance Sheets. The swap has not been designated as a hedge for accounting purposes and therefore changes in the fair value of the derivative are recognized in the Consolidated Statements of Operations and Comprehensive Income. Subsequent to year-end, this swap agreement was completed on January 3, 2024. c) Risk management The Company is exposed to liquidity, 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. 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. The Company is also exposed to concentration risk through its revenues which is mitigated 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. The Company has further mitigated this risk through diversification of its operations. This diversification has primarily come through investments in joint ventures which are accounted for using the equity method. Revenues from these investments are not included in consolidated revenue. d) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages this risk by monitoring and reviewing actual and forecasted cash flows and the effect on bank covenants. The Company meets its liquidity needs from various sources including cash generated by operating activities, cash borrowings under the Credit Facility and financing through operating and financing leases and capital equipment financing. The Company has unused borrowing availability of $129.3 million on the Credit Facility (December 31, 2022 - $88.0 million) and an additional $60.1 million in borrowing availability under finance lease obligations (December 31, 2022 - $46.6 million). The Company believes that it has sufficient cash balances and availability under the Credit Facility to meet its foreseeable operating requirements. e) Market risk Market risk is the risk that the future revenue or operating expense related cash flows, the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices such as foreign currency exchange rates and interest rates. The level of market risk to which the Company is exposed at any point in time varies depending on market conditions, expectations of future price or market rate movements and composition of the Company’s financial assets and liabilities held, non-trading physical assets and contract portfolios. To manage the exposure related to changes in market risk, the Company has used various risk management techniques. Such instruments may be used to establish a fixed price for a commodity, an interest-bearing obligation or a cash flow denominated in a foreign currency. The sensitivities provided below are hypothetical and should not be considered to be predictive of future performance or indicative of earnings on these contracts. i) Foreign exchange risk The Company is exposed to foreign exchange risk due to a significant portion of our operations occurring in currencies other than CAD, primarily AUD and USD. Fluctuations in FX rates may result in a positive or negative impact on our Consolidated Statements of Operations and Comprehensive Income and the translation of the Consolidated Balance Sheet. The Company does not hedge for this foreign exchange translation 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 Canadian Dollar, US Dollar or the Australian Dollar for these short-term transactions, if material. The Company's Credit Facility allows for borrowings in both the Canadian Dollar and Australian Dollar to help manage these transactions. 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, 2023, the Company held $317.5 million of floating rate debt pertaining to its Credit Facility (December 31, 2022 – $180.0 million). As at December 31, 2023, holding all other variables constant, a 100 basis point change to interest rates on the outstanding floating rate debt will result in $3.2 million corresponding change in annual interest expense. 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. f) 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 exposed to concentration risk through its revenue which is mitigated by the customers being large investment grade organizations. The Company is also exposed to credit risk through its accounts receivable and contract assets as a significant portion of revenue is derived from a small group of customers. Credit risk for trade and other accounts receivables and contract assets are managed through established credit monitoring activities. The credit worthiness of new customers is subject to review by management though consideration of type of customer and the size of the contract. The Company has also mitigated risk through diversification of its operations through investments in joint ventures and acquisitions. Joint ventures are accounted for using the equity method and therefore our share of revenues, accounts receivable and contract assets are not included in the tables below. Where the Company generates revenue under its subcontracting arrangement with MNALP, the final end customer is represented in the tables below. The following customers accounted for 10% or more of total revenues: Year ended December 31, 2023 2022 Customer A 27 % 21 % Customer B 23 % 31 % Customer C 20 % 24 % Customer D 9 % 14 % All significant customers that exceed 10% of revenue in 2023 and 2022 fall under the Heavy Equipment - Canada segment. The following customers represented 10% or more of accounts receivable and contract assets: December 31, 2023 December 31, 2022 Customer 1 22 % — % Customer 2 16 % 32 % Customer 3 13 % 16 % Customer 4 9 % 15 % Customer 5 2 % 11 % Customer 1 relates to the Heavy Equipment - Australia segment. All remaining significant customers that exceed 10% of accounts receivable and contract assets in 2023 and 2022 fall under the Heavy Equipment - Canada segment. The Company’s exposure to credit risk for accounts receivable and contract assets is as follows: December 31, 2023 December 31, 2022 Trade accounts receivable $ 65,386 $ 39,625 Holdbacks 363 372 Accrued trade receivables 16,556 33,207 Contract receivables, included in accounts receivable $ 82,305 $ 73,204 Other receivables 15,550 10,607 Total accounts receivable $ 97,855 $ 83,811 Contract assets 35,027 15,802 Total $ 132,882 $ 99,613 Payment terms are per the negotiated customer contracts and generally range between net 15 days and net 60 days. As at December 31, 2023, and December 31, 2022, trade receivables and holdbacks are aged as follows: December 31, 2023 December 31, 2022 Not past due $ 53,007 $ 31,923 Past due 1-30 days 8,790 6,190 Past due 31-60 days 1,772 1,174 More than 61 days 2,180 710 Total $ 65,749 $ 39,997 As at |
Shares
Shares | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shares | Shares a) Common shares Common shares Treasury shares Common shares, net of treasury shares Issued and outstanding at December 31, 2021 30,022,928 (1,564,813) 28,458,115 Retired through share purchase program (2,195,646) — (2,195,646) Purchase of treasury shares — (26,012) (26,012) Settlement of certain equity classified stock-based compensation — 184,364 184,364 Issued and outstanding at December 31, 2022 27,827,282 (1,406,461) 26,420,821 Purchase of treasury shares — (20,955) (20,955) Settlement of certain equity classified stock-based compensation — 337,229 337,229 Issued and outstanding at December 31, 2023 27,827,282 (1,090,187) 26,737,095 Upon settlement of certain equity classified stock-based compensation during the year ended December 31, 2023, the Company withheld the cash equivalent of 234,728 shares for $5,479 to satisfy the recipient tax withholding requirements (year ended December 31, 2022 - 112,583 shares for $1,591). b) Net income per share Year ended December 31, 2023 2022 Net income $ 63,141 $ 67,372 Interest from convertible debentures (after tax) 5,925 5,893 Diluted net income available to common shareholders $ 69,066 $ 73,265 Weighted-average number of common shares 26,566,846 27,406,140 Weighted-average effect of dilutive securities Dilutive effect of treasury shares 1,260,436 1,485,275 Dilutive effect of 5.00% convertible debentures 2,148,438 2,095,236 Dilutive effect of 5.50% convertible debentures 3,051,020 3,020,199 Weighted-average number of diluted common shares 33,026,740 34,006,850 Basic net income per share $ 2.38 $ 2.46 Diluted net income per share $ 2.09 $ 2.15 For the years ended December 31, 2023, and December 31, 2022, all securities were dilutive. c) Share purchase program On April 11, 2022, the Company commenced a normal course issuer bid ("NCIB") under which a maximum number of 2,113,054 common shares were authorized to be purchased. During the year ended December 31, 2022, the Company purchased and subsequently cancelled 2,113,054 shares under this NCIB, which resulted in a decrease to common shares of $16,824 and a decrease to additional paid-in capital of $15,827. This NCIB is now complete, with the purchase and cancellation of the maximum number of shares. During the year ended December 31, 2022, the Company purchased and subsequently cancelled 82,592 shares under another NCIB which commenced on April 9, 2021, which resulted in a decrease to common shares of $665 and a decrease to additional paid-in capital of $816. This NCIB terminated April 8, 2022. d) Dividends Date declared Per share Shareholders on record as of Paid or payable to shareholders Total paid or payable Q1 2022 February 15, 2022 $ 0.08 March 4, 2022 April 8, 2022 $ 2,277 Q2 2022 April 26, 2022 $ 0.08 May 27, 2022 July 8, 2022 $ 2,232 Q3 2022 July 26, 2022 $ 0.08 August 31, 2022 October 7, 2022 $ 2,127 Q4 2022 October 25, 2022 $ 0.08 November 30, 2022 January 6, 2023 $ 2,098 Q1 2023 February 14, 2023 $ 0.10 March 3, 2023 April 6, 2023 $ 2,621 Q2 2023 April 25, 2023 $ 0.10 May 26, 2023 July 7, 2023 $ 2,641 Q3 2023 July 25, 2023 $ 0.10 August 31, 2023 October 6, 2023 $ 2,674 Q4 2023 October 31, 2023 $ 0.10 November 30, 2023 January 5, 2024 $ 2,674 |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segmented information | Segmented information a) General information The Company provides a wide range of mining and heavy civil construction services to customer in the resource development and industrial construction sectors within Canada, the United States, and Australia. A significant portion of our services are primarily focused on supporting the construction and operation of surface mines. The Company considers the basis on which it is organized, including geographic areas, to identify its operating segments. Operating segments of the Company are defined as components of the Company for which separate financial information is available and are evaluated regularly by the chief operating decision maker when allocating resources and assessing performance. The chief operating decision makers ("CODMs") are the President & CEO and the CFO of the Company. The Company’s reportable segments are Heavy Equipment - Canada, Heavy Equipment - Australia, and Other. Heavy Equipment - Canada and Heavy Equipment - Australia include all of aspects of the mining and heavy civil construction services provided within those geographic areas. Other includes our mine management contract work in the United States, our external maintenance and rebuild programs and our equity method investments. Segment performance is evaluated by the CODMs based on gross profit and is measured consistently with gross profit in the consolidated financial statements. Inter-segment revenues are eliminated on consolidation and reflected in the Eliminations column. b) Results by reportable segment For the year ended December 31, 2023 Heavy Equipment - Canada Heavy Equipment - Australia Other Eliminations Total Revenue from external customers $ 760,590 $ 153,877 $ 17,981 $ — $ 932,448 Revenue from intersegment transactions 6,330 4,731 21,982 (8,271) 24,772 Depreciation expense 116,660 13,240 — 1,419 131,319 Segment gross profits 104,167 40,607 11,986 (2,543) 154,217 Segment assets 1,079,370 718,114 101,709 (352,715) 1,546,478 Purchase of property, plant and equipment 146,442 56,367 — — 202,809 For the year ended December 31, 2022 Heavy Equipment - Canada Heavy Equipment - Australia Other Eliminations Total Revenue from external customers $ 700,863 $ 30,693 $ 21,016 $ — $ 752,572 Revenue from intersegment transactions 7,923 — 35,947 (26,903) 16,967 Depreciation expense 119,054 183 — 31 119,268 Segment gross profits 81,754 6,721 15,627 (2,554) 101,548 Segment assets 874,374 29,361 94,702 (18,924) 979,513 Purchase of property, plant and equipment 111,295 204 — — 111,499 Revenue from intersegment transactions includes transactions with the Company's joint ventures accounted for using the equity method which are not eliminated upon consolidation. c) Reconciliation Income before income taxes For the year ended December 31, 2023 2022 Total gross profit for reportable segments $ 154,217 $ 101,548 Less: unallocated corporate items: General and administrative costs 56,844 29,855 Loss on disposal of property, plant and equipment 1,659 536 Equity earnings in affiliates and joint ventures (25,815) (37,053) Interest expense 36,948 24,543 Change in fair value of contingent consideration 4,681 — Gain on derivative financial instruments (6,063) (778) Income before income taxes $ 85,963 $ 84,445 d) Geographic information Revenue 2023 2022 Canada $ 795,472 733,328 Australia 151,789 24,187 United States 9,959 12,024 $ 957,220 769,539 Revenue from external customers is attributed to countries on the basis of the customer's location. Long lived assets 2023 2022 Canada $ 601,537 665,936 Australia 568,306 7,581 $ 1,169,843 673,517 |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Cost of sales | Cost of sales Year ended December 31, 2023 2022 Salaries, wages and benefits $ 292,226 $ 241,113 Repair parts and consumable supplies 198,730 131,460 Subcontractor services 100,572 91,666 Equipment and component sales 46,084 41,302 Third-party equipment rentals 18,727 22,964 Fuel 8,410 12,963 Other 6,935 7,255 $ 671,684 $ 548,723 |
Interest expense, net
Interest expense, net | 12 Months Ended |
Dec. 31, 2023 | |
Interest Expense [Abstract] | |
Interest expense, net | Interest expense, net Year ended December 31, 2023 2022 Credit Facility $ 16,781 $ 9,250 Convertible debentures 6,843 6,861 Equipment financing 5,046 3,344 Interest on customer supply chain financing 4,493 2,196 Mortgage 979 1,006 Amortization of deferred financing costs 1,635 1,076 Interest expense 35,777 23,733 Other interest expense, net 1,171 810 $ 36,948 $ 24,543 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Stock-based compensation expenses included in general and administrative expenses are as follows: Year ended December 31, Note 2023 2022 Restricted share unit plan 20(a) $ 2,702 $ 2,154 Performance restricted share unit plan 20(b) 2,677 2,522 Deferred stock unit plan 20(c) 10,449 104 $ 15,828 $ 4,780 a) Restricted share unit plan Restricted Share Units ("RSUs") 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 settles RSUs with common shares purchased on the open market through a trust arrangement. Number of units Weighted-average exercise price Outstanding at December 31, 2021 553,411 13.55 Granted 167,631 15.55 Vested (169,689) 14.13 Forfeited (15,455) 13.41 Outstanding at December 31, 2022 535,898 14.44 Granted 199,468 27.44 Vested (256,193) 8.77 Forfeited (13,867) 17.60 Outstanding at December 31, 2023 465,306 23.04 At December 31, 2023, there were approximately $5,662 of unrecognized compensation costs related to non-vested share-based payment arrangements under the RSU plan (December 31, 2022 – $3,479) and these costs are expected to be recognized over the weighted-average remaining vesting term of the RSUs of 1.6 years (December 31, 2022 – 1.3 years). During the year ended December 31, 2023, 256,193 units vested, which were settled with common shares purchased through a trust arrangement (December 31, 2022 - 169,689 units vested and settled). b) Performance restricted share unit plan Performance Restricted Share Units ("PSUs") are granted each year to senior management employees with respect to services to be provided in that year and the following two years. 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 grant date. The Company settles PSUs with common shares purchased through a trust arrangement. Number of units Weighted-average exercise price Outstanding at December 31, 2021 426,569 12.06 Granted 116,775 15.55 Vested (111,630) 14.13 Outstanding at December 31, 2022 431,714 12.47 Granted 101,597 25.62 Vested (213,623) 8.48 Outstanding at December 31, 2023 319,688 19.32 At December 31, 2023, there were approximately $3,655 of total unrecognized compensation costs related to non–vested share–based payment arrangements under the PSU plan (December 31, 2022 - $3,251) and these costs are expected to be recognized over the weighted-average remaining vesting term of the PSUs of 1.5 years (December 31, 2022 - 1.3 years). During the year ended December 31, 2023, 213,623 units vested, which were settled with common shares purchased through a trust arrangement at a factor of 1.48 common shares per PSU based on performance against grant date criteria (December 31, 2022 - 111,630 units at a factor of 1.14 vested and settled). The Company estimated the fair value of the PSUs granted during the years ended December 31, 2023 and 2022 using a Monte Carlo simulation with the following assumptions: 2023 2022 Risk-free interest rate 4.21 % 3.14 % Expected volatility 38.90 % 48.70 % c) Deferred stock unit plan Prior to January 1, 2021, under the Company’s shareholding guidelines non-officer directors of the Company were required to receive at least 50% and up to 100% of their annual fixed remuneration in the form of DSUs, at their election. The shareholding guidelines were amended effective January 1, 2021, to require directors to take at least 60% of their annual fixed remuneration in the form of DSUs if they do not meet shareholding guidelines, and to take between 0% and 100% of their annual fixed remuneration in the form of DSUs if they do meet shareholding guidelines. In addition to directors, eligible executives can elect to receive up to 50% of their annual short term incentive plan compensation in the form of DSUs. The DSUs vest immediately upon issuance and are only redeemable upon departure, retirement or death of the participant. DSU holders that are not US taxpayers may elect to defer the redemption date until a date no later than December 1 of the calendar year following the year in which the departure, retirement or death occurred. Number of units Outstanding at December 31, 2021 932,644 Granted 87,569 Redeemed — Outstanding at December 31, 2022 1,020,213 Granted 31,575 Redeemed (286,152) Outstanding at December 31, 2023 765,636 At December 31, 2023, the fair market value of these units was $27.90 per unit (December 31, 2022 – $17.90 per unit). At December 31, 2023, the current portion of DSU liabilities of $nil was included in accrued liabilities (December 31, 2022 - $5,099) and the long-term portion of DSU liabilities of $21,361 was included in other long-term obligations (December 31, 2022 - $13,159) in the Consolidated Balance Sheets. During the year ended December 31, 2023, there were 286,152 units redeemed and settled in cash for $7,817 (December 31, 2022 - 0 units were redeemed and settled in cash for $nil). There is no unrecognized compensation expense related to the DSUs since these awards vest immediately upon issuance. |
Business acquisitions
Business acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business acquisitions | Business acquisitions a) MacKellar Group On October 1, 2023, the Company acquired 100% of the shares and business of MacKellar Group (“MacKellar”), a privately owned Australia-based provider of heavy earthworks solutions to the mining and civil sectors for total consideration of $179,668 including a cash payment and contingent consideration comprised of a contingent payment based on forecasted performance for a specific customer which is expected to be paid in full, an earn-out mechanism based on MacKellar’s future net income generated over four years, and deferred consideration which is a vendor provided debt mechanism to be paid out evenly over four years and is estimated based on unaudited financial statements at closing. The acquisition of MacKellar significantly expands the Company's capability and allows the Company to serve a highly valuable and diversified base of customers globally. The following table summarizes the total consideration paid for MacKellar and the fair values of the assets acquired and liabilities assumed at the acquisition date: October 1, 2023 Cash consideration $ 65,572 Earn-out at estimated fair value 79,839 Deferred consideration at estimated fair value 27,014 Contingent payment at estimated fair value 7,243 Total consideration transferred $ 179,668 Equipment financing assumed 203,946 Total purchase price $ 383,614 Purchase price allocation to assets acquired and liabilities assumed: Cash $ 13,901 Accounts receivable 65,033 Contract assets 713 Inventories 12,155 Prepaid expenses 2,187 Property, plant and equipment 394,394 Investments in affiliates and joint ventures 85 Intangible assets 690 Accounts payable (45,829) Accrued liabilities (22,464) Other long-term obligations (16,934) Deferred income tax liabilities (20,317) Third party equipment financing assumed: Financing obligations (173,430) Finance leases (30,516) Total identifiable net assets at fair value $ 179,668 NACG’s existing Credit Facility funded the payout of the third party equipment financing assumed as part of the Transaction in the amount of $73,657 for financing obligations and $18,509 for finance leases. The fair value of the assets acquired includes $65,033 of accounts receivable, comprised of trade and other receivables. The gross amount of accounts receivable approximates its fair value with no expected uncollectible amounts as of the acquisition date. The fair value of the assets acquired includes $394,394 of property, plant and equipment. The Company engaged a third-party specialist to determine the fair value of the property, plant and equipment using a market based approach based primarily on the selling price of comparable assets. During the period from acquisition to December 31, 2023, the Company recognized $122,519 or 12.8% of revenue and $13,946 or 22.1% of net income from MacKellar recorded in the Consolidated Statement of Operations and Comprehensive Income. The following unaudited pro forma information gives effect to the transaction as if it had occurred on January 1, 2022. The unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred on January 1, 2022, nor are they indicative of future results of operations. Year ended December 31, 2023 2022 Revenue $ 1,296,328 $ 1,086,460 Net income 89,658 78,261 These pro forma amounts have been calculated after applying NACG's accounting policies and adjusting the results of MacKellar to reflect the depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant, and equipment had been applied from January 1, 2022, with the consequential tax effects. During the year ended December 31, 2023, the Company recognized $7,095 of acquisition-related costs in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. The fiscal 2023 unaudited pro forma net income above was adjusted to exclude the impact of acquisition-related transaction costs. These acquisition costs have been reflected in the pro forma earnings for the year ended December 31, 2022, in the table above. b) ML Northern Services Ltd. On October 1, 2022, the Company acquired 100% of the shares and business of ML Northern Services Ltd. ("ML Northern"), a privately-owned heavy equipment servicing company specializing in mobile fuel, lube, and steaming services based in Fort McMurray, Alberta, for total consideration of $8,002, comprised of a purchase price of $13,723 for property, plant and equipment and working capital, less assumed lease liabilities of $5,721. The following table summarizes the total consideration paid for ML Northern and the fair value of the assets acquired and liabilities assumed at the acquisition date: Purchase price allocation to assets acquired and liabilities assumed: October 1, 2022 Property, plant and equipment and working capital Cash $ 795 Accounts receivable 4,068 Prepaid expenses 30 Property, plant and equipment 9,562 Operating lease right-of-use asset 131 Accounts payable (48) Accrued liabilities (599) Deferred tax liabilities (216) $ 13,723 Lease liabilities Finance lease liabilities $ (5,595) Operating lease liabilities (126) $ (5,721) Total identifiable net assets at fair value $ 8,002 The Company paid cash consideration of $3,000 and recorded deferred consideration of $5,002 included in accrued liabilities at December 31, 2022. During the year ended December 31, 2022, the Company recognized $95 of acquisition-related costs associated with professional and legal advisory fees in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. During the year ended December 31, 2022, the Company recognized $5,224 of revenue and $1,094 of net income from ML Northern recorded in the Consolidated Statement of Operations and Comprehensive Income. Pro forma disclosures related to the effect of the acquisition have been excluded on the basis of immateriality. Deferred consideration of $5,002 was paid during the year ended December 31, 2023. |
Other information
Other information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Other information | Other information a) Supplemental cash flow information Year ended December 31, 2023 2022 Cash paid during the year for: Interest $ 33,498 $ 24,084 Income taxes 1,370 — Cash received during the year for: Interest 446 177 Non-cash transactions: Addition of property, plant and equipment by means of finance leases 28,159 8,931 Addition of property, plant and equipment by means of finance leases assumed through acquisition 30,516 — Increase in assets held for sale, offset by property, plant and equipment 10,927 4,276 Non-cash working capital exclusions: Net increase in accounts receivable related to realized gain on derivative financial instruments 4,015 — Net decrease (increase) in accounts payable and accrued liabilities related to loans from affiliates and joint ventures 2,113 (13,500) Net decrease in accrued liabilities related to conversion of bonus compensation to deferred stock units — 639 Net increase in accrued liabilities related to the current portion of deferred stock unit liability — (5,099) Net increase in accrued liabilities related to the current portion of contingent consideration (7,342) — Net increase in accrued liabilities related to taxes payable 367 (362) Net increase in accrued liabilities related to dividend payable (576) (961) Net increase in accrued liabilities related to deferred consideration for acquisition of MacKellar (13,439) — Net increase in accrued liabilities related to deferred consideration for acquisition of ML Northern — (5,002) Non-cash working capital transactions related to acquisitions (note 21) Increase in accounts receivable 65,033 4,068 Increase in contract assets 713 — Increase in inventory 12,155 — Increase in prepaid expenses 2,187 30 Increase in accounts payable (45,829) (48) Increase in accrued liabilities (22,464) (599) Non-cash working capital movement from change in foreign exchange rates Increase in accounts receivable 2,073 — Increase in contract assets 23 — Increase in inventory 387 — Increase in prepaid expenses 70 — Increase in accounts payable (1,727) — Increase in accrued liabilities (828) — b) Net change in non-cash working capital The table below represents the cash provided by (used in) non-cash working capital: Year ended December 31, 2023 2022 Operating activities: Accounts receivable $ 57,077 $ (10,956) Contract assets (18,489) (6,043) Inventories (2,522) (5,354) Contract costs — 2,673 Prepaid expenses and deposits 6,379 (3,453) Accounts payable 9,585 12,750 Accrued liabilities 372 (989) Contract liabilities (1,352) (1,938) $ 51,050 $ (13,310) |
Comparative figures
Comparative figures | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Comparative figures | Comparative figures Certain comparative figures have been reclassified from statements previously presented to conform to the presentation of the current year. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies During the normal course of the Company's operations, various disputes, legal and tax matters are pending. In the opinion of management involving the use of significant judgement and estimates, these matters will not have a material effect on the Company's consolidated financial statements. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("US GAAP"). These consolidated financial statements include the accounts of the Company and its wholly-owned incorporated subsidiaries in Canada, the United States and Australia. All significant intercompany transactions and balances are eliminated upon consolidation. The Company also holds ownership interests in other corporations, partnerships and joint ventures. The Company consolidates variable interest entities ("VIE") for which it is considered to be the primary beneficiary as well as voting interest entities in which it has a controlling financial interest as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation, and related standards. Investees and joint ventures over which the Company exercises significant influence are accounted for using the equity method and are included in "investments in affiliates and joint ventures" within the accompanying Consolidated Balance Sheets. During the first quarter of 2023, the Company updated the presentation of finance lease obligations within the Consolidated Balance Sheets to be included in long-term debt. Within the long-term debt note, finance lease obligations, financing obligations, and promissory notes have been combined as equipment financing. Finance lease obligations are the finance lease liabilities recognized in accordance with the Company's lease policy. Financing obligations arise when the Company finances its owned equipment. There has been no change in the Company’s accounting policy for finance lease obligations or change in the recognition or measurement of the related balances now recognized within long-term debt. The change in presentation had no effect on the reported results of operations. The comparative period has been updated to reflect this presentation change. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures reported in these consolidated financial statements and accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates and judgments made by management include: • the assessment of the percentage of completion on time-and-materials, unit-price, lump-sum and cost-plus contracts with defined scope (including estimated total costs and provisions for estimated losses) and the recognition of variable revenue from unapproved contract modifications and change orders on revenue contracts; • the determination of whether an acquisition meets the definition of a business combination; • the fair value of the assets acquired and liabilities assumed as part of an acquisition; • the evaluation of whether the Company is a primary beneficiary of an entity or has a controlling interest in an investee and is required to consolidate it; • assumptions used in measuring the fair value of contingent consideration; • assumptions used in impairment testing; and • estimates and assumptions used in the determination of the allowance for credit losses, 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 the estimates of the cost to complete each project. Cost estimates for significant projects are estimated using a detailed cost analysis of project activities 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 costs 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's revenue source falls into one of three categories: construction services, operations support, or equipment and component sales. Construction services are related to mine development or expansion projects and are generally funded from customers' capital budgets. The Company provides construction services under lump-sum, unit-price, time-and materials and cost-plus contracts. When the commercial terms are lump-sum and unit-price, the contract scope and value is typically defined. Time-and-materials and cost-plus contracts are generally undefined in scope and total price. Operations support services revenue is mainly generated under long-term site-services agreements with the customers (master service agreement and multiple use contracts). These agreements clearly define whether commitment to volume or scope of services over the life of the contract is included or excluded. When excluded, work under the agreement is awarded through shorter-term work authorizations under the general terms of the agreement. The Company generally provides operations support services under either time-and-materials or unit-price contra cts depending on factors such as the degree of complexity, the completeness of engineering and the required schedule. Equipment and component sales revenue is generated from our equipment maintenance and rebuild activities, along with our mining component supplier business. The commercial terms for equipment and component sales are generally lump-sum, unit-price, or time-and-materials . Significant estimates are required in the revenue recognition process including assessment of the percentage of completion, identification of performance obligations, and estimation of variable consideration, including the extent of any constraints. The Company’s invoicing frequency and payment terms are in accordance with negotiated customer contracts. Customer invoicing can range between daily and monthly and payment terms generally range between net 15 and net 60 days. The Company does not typically include extended payment terms in its contracts with customers. Under these payment terms, the customer pays progress payments based on actual work or milestones completed. When payment terms do not align with revenue recognition, the variance is recorded to either contract liabilities or contract assets, as appropriate. Customer contracts do not generally include a significant financing component because the Company does not expect the period between customer payment and transfer of control to exceed one year. The Company does not adjust consideration for the effects of a significant financing component if the period of time between the transfer of control and the customer payment is less than one year. The Company accounts for a contract when it has approval and commitments from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and the collectability of consideration is probable. Each contract is evaluated to determine if it includes more than one performance obligation. This evaluation requires significant judgement and the determination that the contract contains more than one performance obligation could change the amount of revenue and profit recorded in a given period. The majority of the Company's contracts with defined scope include one significant integrated service, where the Company is responsible for ensuring the individual goods and services are incorporated into one combined output. Such contracts are accounted for as one performance obligation. When more than one distinct good or service is contracted, the contract is separated into more than one performance obligation and the total transaction price is allocated to each performance obligation based upon stand-alone selling prices. When a stand-alone selling price is not observable, it is estimated using a suitable method. The total transaction price can be comprised of fixed consideration and variable consideration, such as profit incentives, discounts and performance bonuses or penalties. When a contract includes variable consideration, the amount included in the total transaction price is based on the expected value or the mostly likely amount, constrained to an amount that it is probable a significant reversal will not occur. Significant judgement is involved in determining if a variable consideration amount should be constrained. In applying this constraint, the Company considers both the likelihood of a revenue reversal arising from an uncertain future event and the magnitude of the revenue reversal if the uncertain event were to occur or fail to occur. The following circumstances are considered to be possible indicators of significant revenue reversals: • The amount of consideration is highly susceptible to factors outside the Company’s influence, such as judgement of actions of third parties and weather conditions; • The length of time between the recognition of revenue and the expected resolution; • The Company’s experience with similar circumstances and similar customers, specifically when such items have predictive value; • The Company’s history of resolution and whether that resolution includes price concessions or changing payment terms; and • The range of possible consideration amounts. The Company's performance obligations for construction services and operations support are typically satisfied by transferring control over time, for which revenue is recognized using the percentage of completion method, measured by the ratio of costs incurred to date to estimated total costs. For defined scope contracts, the cost-to-cost method faithfully depicts the Company’s performance because the transfer of the asset to the customer occurs as costs are incurred. The costs of items that do not relate to the performance obligation, particularly in the early stages of the contract, are excluded from costs incurred to date. Pre-construction activities, such as mobilization and site setup, are recognized as contract costs on the Consolidated Balance Sheets and amortized over the life of the project. These costs are excluded from the cost-to- cos t calculation. Equipment and component sales are typically satisfied at a point in time, and revenue is recognized when control of the completed asset has been transferred to the customer, along with the cost of goods s old (cost of sales). The Company has elected to apply the ‘as-invoiced’ practical expedient to recognize revenue in the amount to which the Company has a right to invoice for all contracts in which the value of the performance completed to date directly corresponds with the right to consideration. This will be applied to all contracts, where applicable, and the majority of undefined scope work is expected to use this practical expedient. The length of the Company’s contracts varies from less than one year for typical contracts to several years for certain larger contracts. Cost of sales 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 expenses as incurred. If a loss is estimated on an uncompleted contract, a provision is made in the period in which such losses are determined. Changes in project performance, project conditions, and estimated profitability, including those arising from profit incentives, penalty provisions and final contract settlements, may result in revisions to costs and revenue that are recognized in the period in which such adjustments are determined. Once a project is underway, the Company will often experience changes in conditions, client requirements, specifications, designs, materials and work schedules. Generally, a "change order" will be negotiated with the customer to modify the original contract to approve both the scope and price of the change. Occasionally, disagreements arise regarding changes, their nature, measurement, timing and other characteristics that impact costs and revenue under the contract. When a change becomes a point of dispute between the Company and a customer, the Company will assess the legal enforceability of the change to determine if an unapproved contract modification exists. The Company considers a contract modification to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most contract modifications are for goods and services that are not distinct from the existing contract due to the integrated services provided in the context of the contract and are accounted for as part of the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. If a contract modification is not approved by the customer, the associated revenue is treated as variable consideration, subject to constraint. Management estimates variable consideration utilizing estimation methods that best predict the amount of consideration to which the Company will be entitled. 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. In certain instances, the Company’s long-term contracts allow its customers to unilaterally reduce or eliminate scope of work without cause. These instances represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. g) Contract costs The Company occasionally incurs costs to obtain contracts (reimbursable bid costs) and to fulfill contracts (fulfillment costs). If these costs meet certain criteria, they are capitalized as contract costs, included within other assets on the Consolidated Balance Sheets. Capitalized costs are amortized based on the transfer of goods or services to which the assets relate and are included in cost of sales. Reimbursable bid costs meet the criteria for capitalization when these costs will be reimbursed by the owner regardless of the outcome of the bid. Generally, this occurs when the Company has been selected as the preferred bidder for a project. The Company recognizes reimbursable bid costs as an expense when incurred if the amortization period of the asset that the entity would have otherwise recognized is one year or less. Costs to fulfill a contract meet the criteria for capitalization if they relate directly to a specifically identifiable contract, they generate or enhance resources that will be used to satisfy future performance obligations and if the costs are expected to be recovered. The costs that meet this criterion are often mobilization and site set-up costs. Contract costs are recorded within other assets on the Consolidated Balance Sheets. h) Remaining performance obligations Remaining performance obligations represents the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. Certain of the Company's long-term contracts can allow customers to unilaterally reduce or eliminate the scope of the contracted work without cause. These long-term contracts represent higher risk due to uncertainty of total contract value and estimated costs to complete; therefore, potentially impacting revenue recognition in future periods. Excluded from this disclosure are amounts where the Company recognizes revenue as-invoiced (note 5(d)). Remaining performance obligations are recorded within contract assets and contract liabilities on the Consolidated Balance Sheets. i) Contract liabilities Contract liabilities consist of advance payments and billings in excess of costs incurred and estimated earnings on uncompleted contracts. Long-term contract liabilities (included in other long-term obligations) consists of upfront payments for long-term contracts to assist with operations scaling. |
Balance sheet classifications | Balance sheet classifications A one-year time period is typically used as the basis for classifying current assets and liabilities. However, there is a possibility that amounts receivable and payable under construction contracts (principally customer and supplier holdbacks) may extend beyond one year. |
Cash | Cash Cash includes cash on hand and bank balances net of outstanding cheques. |
Accounts receivable and contract assets | Accounts receivable and contract assets Accounts receivable are recorded when the Company has an unconditional right to consideration arising from performance of contracts with customers. Accounts receivable may be comprised of amounts billed to customers and amounts that have been earned but have not yet been billed. Such unbilled but earned amounts generally arise when a billing period ends subsequent to the end of the reporting period. When this occurs, revenue equal to the earned and unbilled amount is accrued. Such accruals are classified as accounts receivable on the balance sheet, even though they are not yet billed, as they represent consideration for work that has been completed prior to the period end where the Company has an unconditional right to consideration. Contract assets include unbilled amounts representing revenue recognized from work performed where the Company does not yet have an unconditional right to compensation. These balances generally relate to (i) revenue accruals on contracts where the percentage of completion method of revenue recognition requires an accrual over what has been billed and (ii) revenue recognized from variable consideration related to unpriced contract modifications. The Company records allowance for credit losses using the expected credit loss model upon the initial recognition of financial assets. The estimate of expected credit loss considers historical credit loss information that is adjusted for current economic and credit conditions. Bad debt expense is charged to cost of sales in the Consolidated Statements of Operations and Comprehensive Income in the period the allowance is recognized. The counterparties to the majority of the Company's financial assets are major oil and coal producers with a long history of no credit losses. |
Inventories | Inventories Inventories are carried at the lower of cost and net realizable value, and consist primarily of repair parts, parts and components held for resale, tires and track frames, fuel and lubricants, and customer rebuild work in progress. Cost is determined using the weighted-average method. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost. Equipment under finance lease is recorded at the present value of minimum lease payments at the inception of the lease. Major components of heavy construction equipment in use such as engines and drive trains are recorded separately. Depreciation is not recorded until an asset is available for and in 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 - 120,000 hours Major component parts in use Units of production 2,500 - 70,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 4 - 10 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation The costs for periodic repairs and maintenance are expensed to the extent the expenditures serve only to restore the assets to their normal operating condition without enhancing their service potential or extending their useful lives. |
Goodwill | Goodwill Goodwill represents the excess of consideration over the fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed in a business combination. Goodwill is reviewed annually on October 1 st for impairment or more frequently when there is an indication of potential impairment. Impairment is tested at the reporting unit level by comparing the reporting unit's carrying amount to its fair value. 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. The annual test was performed on the acquired |
Intangible assets | Intangible assets Acquired intangible assets with finite lives are recorded at historical cost net of accumulated amortization and accumulated impairment losses, if any. The cost of intangible assets acquired in an asset acquisition are recorded at cost based upon relative fair value as at the acquisition date. Costs incurred to increase the future benefit of intangible assets are capitalized. Intangible assets with definite lives are amortized over their estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at the end of each reporting period. Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer relationship Straight-line 4 years |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets or asset groups held and used including property, plant and equipment and identifiable intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of an asset or group of assets is less than its carrying amount, it is considered to be impaired. The Company measures the impairment loss as the amount by which the carrying amount of the asset or group of assets exceeds its fair value, which is charged to the Consolidated Statements of Operations and Comprehensive Income. 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. 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 |
Foreign currency translation | Foreign currency translation The functional currency of the Company is Canadian Dollars. Transactions recorded within these subsidiaries that are denominated in foreign currencies are recorded at the rate of exchange on the transaction date. Monetary assets and liabilities within these subsidiaries denominated in foreign currencies are translated into Canadian Dollars at the rate of exchange prevailing at the balance sheet date. The resulting foreign exchange gains and losses are included in the determination of earnings and included within general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. Accounts of the Company's Australia-based subsidiaries, which have Australian Dollar functional currency, and US-based subsidiaries, which have US Dollar functional currency, are translated into Canadian Dollars using the current rate method. Assets and liabilities are translated at the rate of exchange in effect at the balance sheet date, and revenue and expense items are translated at the average rate of exchange for the period. The resulting unrealized exchange gains and losses from these translation adjustments are included as a separate component of shareholders’ equity in Accumulated Other Comprehensive Income. The effect of exchange rate changes on cash balances held in foreign currencies is separately reported as part of the reconciliation of the change in cash and for the period. |
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. Transfers between levels of the fair value hierarchy are deemed to have occurred at the date the event or change in circumstance causing the transfer occurred. |
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. |
Stock-based compensation | Stock-based compensation The Company has a Restricted Share Unit ("RSU") Plan which is described in note 20(a). 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 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 20(b). 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 criteria include the passage of time and, for awards prior to 2022, is based upon the improvement of total shareholder return ("TSR") as compared to a defined Canadian company peer group. For awards in 2022 and later, performance is based equally on four criteria: (a) improvement of TSR as compared to a defined group consisting of Canadian and US public companies and relevant S&P/TSX small-cap subset indexes; (b) adjusted earnings before interest and taxes; (c) free cash flow; and (d) adjusted return on invested capital. 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 a Monte Carlo model. The Company settles all PSUs with common shares purchased on the open market through a trust arrangement. Employees have the option to receive the full amount of vested units or to have the Company withhold shares to satisfy the tax withholding requirements on their behalf. The Company recognizes compensation cost over the three-year term of the PSU in the Consolidated Statements of Operations and Comprehensive Income, with a corresponding increase to additional paid-in capital. The Company has a Deferred Stock Unit ("DSU") Plan which is described in note 20(c). 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. The DSUs vest immediately upon issuance and are only redeemable upon departure, retirement or death of the participant. 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 5 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 in the Consolidated Statements of Operations and Comprehensive Income. 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 Operations and Comprehensive Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimated. |
Net income per share | Net income per share Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period (see note 16(b)). Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding during the year, adjusted for dilutive share amounts. The diluted per share amounts are calculated using the treasury stock method and the if-converted method. |
Leases | Leases For lessee accounting, the Company determines whether a contract is or contains a lease at inception of the contract. At the lease commencement date, the Company recognizes a right-of-use ("ROU") asset and a lease liability. The ROU asset for operating and finance leases are included in operating lease right-of-use assets and property, plant and equipment, respectively, on the Consolidated Balance Sheets. The lease liability for operating and finance leases are included in operating lease liabilities and long-term debt, respectively. Operating and finance lease assets and liabilities are initially measured at the present value of lease payments at the commencement date. Subsequently, finance lease liabilities are measured at amortized cost using the effective interest rate method and operating lease liabilities are measured at the present value of unpaid lease payments. As most of the Company’s operating lease contracts do not provide the implicit interest rate, nor can the implicit interest rate be readily determined, the Company uses its incremental borrowing rate as the discount rate for determining the present value of lease payments. The Company's incremental borrowing rate for a lease is the rate that the Company would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the lease implicit interest rate when it is determinable. The lease term for all of the Company's leases includes the non-cancellable period of the lease plus any period covered by options to extend (or not to terminate) the lease term when it is reasonably certain that the Company will exercise that option. Lease payments are comprised of fixed payments owed over the lease term and the exercise price of a purchase option if the Company is reasonably certain to exercise the option. The ROU assets for both operating and finance leases are initially measured at cost, which consists of the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred, less any lease incentives received. For finance leases, ROU asset depreciation expense is recognized and presented separately from interest expense on the lease liability through depreciation and interest expense, net, respectively. The ROU asset for operating leases is measured at the amortized value of the ROU asset. For operating leases, amortization of the ROU asset is calculated as the current-period lease cost adjusted by the lease liability accretion to the then outstanding lease balance. Lease expense of the operating lease ROU asset is recognized on a straight-line basis over the remaining lease term through general and administrative expenses. ROU assets for operating and finance leases are reduced by any accumulated impairment losses. The Company's existing accounting policy for impairment of long-lived assets is applied to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to be recognized. The Company monitors for events or changes in circumstances that require a reassessment of one or more of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset. The Company generally accounts for contracts with lease and non-lease components separately. This involves allocating the consideration in the contract to the lease and non-lease components based on each component’s relative standalone price. For certain leases, the Company has elected to apply the practical expedient to account for the lease and non-lease components together as a single lease component. Non-lease components include common area maintenance and machine maintenance. For those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. ROU assets and lease liabilities for all leases that have a lease term of 12 months or less ("short-term leases") are not recognized. The Company recognizes its short-term lease payments as an expense on a straight-line basis over the lease term. Short-term lease variable payments are recognized in the period in which the payment is assessed. For lessor accounting, the Company entered into contracts to sublease certain operating property leases to third parties and generally accounts for lease and non-lease components of subleases separately. If any of the following criteria are met, the Company classifies the lease as a sales-type lease: • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; • The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise; • The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease; • The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of these criteria are met, the Company classifies the lease as an operating lease unless both of the following criteria are met, in which case the Company records the lease as a direct financing lease: • The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments and/or any other third party unrelated to the lessor equals or exceeds substantially all of the fair value of the underlying asset. • It is probable that the lessor will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. |
Deferred financing costs | Deferred financing costsUnderwriting, 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 mortgage and the issuance of Convertible Debentures 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 revolving facilities under the credit facilities are included within other assets on the Consolidated Balance Sheets and are amortized ratably over the term of the Credit Facility. |
Investments in affiliates and joint ventures | Investments in affiliates and joint ventures Upon inception or acquisition of a contractual agreement, the Company performs an assessment to determine whether the arrangement contains a variable interest in a legal entity and whether that legal entity is a variable interest entity ("VIE"). Where it is concluded that the Company is the primary beneficiary of a VIE, the Company will consolidate the accounts of that VIE. Other qualitative factors that are considered include decision-making responsibilities, the VIE capital structure, risk and rewards sharing, contractual agreements with the VIE, voting rights and level of involvement of other parties. The Company assesses the primary beneficiary determination for a VIE on an ongoing basis as changes occur in the facts and circumstances related to a VIE. If an entity is determined not to be a VIE, the voting interest entity model will be applied. The maximum exposure to loss as a result of involvement with the VIE is the Company’s share of the investee’s net assets. The Company utilizes the equity method to account for its interests in affiliates and joint ventures that the Company does not control but over which it exerts significant influence. The equity method is typically used when it has an ownership interest of between 15% and 50% in an entity, provided the Company is able to exercise significant influence over the investee’s operations. Significant influence is the power to participate in the financial and operating policy decisions of the investee. Under the equity method, the investment in an affiliate or a joint venture is initially recognized at cost. Transaction costs that are incremental and directly attributable to the investment in the affiliate or joint venture are included in the cost. The total initial cost of the investment is attributable to the net assets in the equity investee at fair value. The carrying amount of investment is adjusted to recognize changes in the Company’s share of net assets of the affiliate or joint venture since the acquisition date. The aggregate of the Company’s share of profit or loss of affiliates and joint ventures is shown on the face of the Consolidated Statements of Operations and Comprehensive Income, representing profit or loss in the subsidiaries of the affiliate or joint venture. This share of profit or loss is inclusive of any mark-to-market adjustments made by the affiliates or joint ventures. Transactions between the Company and the affiliate or joint venture are eliminated to the extent of the interest in the affiliate or joint venture. When the Company earns revenue on downstream sales to affiliate or joint ventures, it eliminates its proportionate share of profit through revenue and cost of sales. After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its affiliate or joint venture. At each reporting date, the Company determines whether there is objective evidence that the investment in the affiliate or joint venture is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within "equity earnings in affiliates and joint ventures" in the Consolidated Statements of Operations and Comprehensive Income. Upon loss of significant influence over the associate or joint control over the joint venture, the Company measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in the Consolidated Statements of Operations and Comprehensive Income. |
Derivative instruments | Derivative instruments The Company may periodically use derivative financial instruments to manage financial risks from fluctuations in share prices. Such instruments are only used for risk management purposes. Derivative financial instruments are subject to standard terms and conditions, financial controls, management and risk monitoring procedures including Board approval for all significant transactions. These derivative financial instruments were not designated as hedges for accounting purposes and were recorded at fair value with realized and unrealized gains and losses recognized in the Consolidated Statements of Operations and Comprehensive Income. |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method. Assets acquired and liabilities assumed are recorded at the acquisition date at their fair values. The Company measures goodwill as the excess of the total cost of acquisition over the fair value of identifiable net assets of an acquired business at the acquisition date. Any contingent consideration payable is recognized at fair value at the acquisition date. The current portion of the consideration payable is recorded in accrued liabilities and long-term portion is recorded in other long-term obligations on the Consolidated Balance Sheets, with any subsequent changes to fair value recorded in general and administrative expenses in the Consolidated Statement of Operations and Comprehensive Income. Acquisition-related costs of $7,095 in 2023 were expensed when incurred in general and administrative charges. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of depreciation of property, plant and equipment | Depreciation is calculated based on the cost, net of the estimated residual value, over the estimated useful life of the assets on the following bases and rates: Assets Basis Rate Heavy equipment Units of production 5,000 - 120,000 hours Major component parts in use Units of production 2,500 - 70,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 4 - 10 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation December 31, 2023 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 503,359 $ 133,448 $ 369,911 Major component parts in use 747,036 207,969 539,067 Other equipment 49,207 33,952 15,255 Licensed motor vehicles 20,051 7,207 12,844 Office and computer equipment 10,133 6,336 3,797 Buildings 45,681 5,231 40,450 Capital inventory and capital work in progress 84,555 — 84,555 Land 10,472 — 10,472 1,470,494 394,143 1,076,351 Assets under finance lease Heavy equipment 64,691 19,435 45,256 Major component parts in use 28,514 9,580 18,934 Other equipment 37 12 25 Licensed motor vehicles 2,555 175 2,380 95,797 29,202 66,595 Total property, plant and equipment $ 1,566,291 $ 423,345 $ 1,142,946 December 31, 2022 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 368,318 $ 123,695 $ 244,623 Major component parts in use 388,169 163,124 225,045 Other equipment 40,752 30,769 9,983 Licensed motor vehicles 12,109 6,800 5,309 Office and computer equipment 7,510 5,669 1,841 Buildings 29,725 4,489 25,236 Capital inventory and capital work in progress 46,050 — 46,050 Land 10,472 — 10,472 903,105 334,546 568,559 Assets under finance lease Heavy equipment 75,750 28,265 47,485 Major component parts in use 40,406 22,264 18,142 Other equipment 4,238 1,814 2,424 Licensed motor vehicles 9,669 469 9,200 130,063 52,812 77,251 Total property, plant and equipment $ 1,033,168 $ 387,358 $ 645,810 |
Schedule of useful lives of definite lived intangible assets | Estimated useful lives of definite lived intangible assets and corresponding amortization method are: Assets Basis Rate Internal-use software Straight-line 4 years Customer relationship Straight-line 4 years |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Note December 31, 2023 December 31, 2022 Trade 9 $ 65,386 $ 39,625 Holdbacks 363 372 Accrued trade receivables 16,556 33,207 Contract receivables $ 82,305 $ 73,204 Other 15,550 10,607 $ 97,855 $ 83,811 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Year ended December 31, 2023 2022 Revenue by source Operations support services $ 886,963 $ 688,734 Equipment and component sales 57,822 48,728 Construction services 12,435 32,077 $ 957,220 $ 769,539 By commercial terms Time-and-materials $ 575,608 $ 523,468 Unit-price 363,979 234,047 Lump-sum 17,633 12,024 $ 957,220 $ 769,539 Revenue recognition method As-invoiced $ 600,744 $ 522,415 Cost-to-cost percent complete 298,654 198,396 Point-in-time 57,822 48,728 $ 957,220 $ 769,539 |
Schedule of contract balances | Note December 31, 2023 December 31, 2022 Contract assets $ 35,027 $ 15,802 Contract liabilities 59 1,411 Long-term contract liabilities 14 16,114 — The following table provides information about revenue recognized from performance obligations that were satisfied (or partially satisfied) in previous periods: Year ended December 31, 2023 2022 Revenue recognized (derecognized) $ 2,598 $ (1,201) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | December 31, 2023 December 31, 2022 Repair parts $ 41,358 $ 26,036 Tires and track frames 6,478 3,372 Fuel and lubricants 1,941 2,237 Parts and supplies 49,777 31,645 Parts, supplies and components for equipment rebuilds 13,898 14,899 Customer rebuild work in process 1,287 3,354 $ 64,962 $ 49,898 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule 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 - 120,000 hours Major component parts in use Units of production 2,500 - 70,000 hours Other equipment Straight-line 5 - 10 years Licensed motor vehicles Straight-line 5 - 10 years Office and computer equipment Straight-line 4 - 10 years Furnishings, fixtures and facilities Straight-line 10 - 30 years Buildings Straight-line 10 - 50 years Leasehold improvements Straight-line Over shorter of estimated useful life and lease term Land No depreciation No depreciation December 31, 2023 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 503,359 $ 133,448 $ 369,911 Major component parts in use 747,036 207,969 539,067 Other equipment 49,207 33,952 15,255 Licensed motor vehicles 20,051 7,207 12,844 Office and computer equipment 10,133 6,336 3,797 Buildings 45,681 5,231 40,450 Capital inventory and capital work in progress 84,555 — 84,555 Land 10,472 — 10,472 1,470,494 394,143 1,076,351 Assets under finance lease Heavy equipment 64,691 19,435 45,256 Major component parts in use 28,514 9,580 18,934 Other equipment 37 12 25 Licensed motor vehicles 2,555 175 2,380 95,797 29,202 66,595 Total property, plant and equipment $ 1,566,291 $ 423,345 $ 1,142,946 December 31, 2022 Cost Accumulated Net Book Value Owned assets Heavy equipment $ 368,318 $ 123,695 $ 244,623 Major component parts in use 388,169 163,124 225,045 Other equipment 40,752 30,769 9,983 Licensed motor vehicles 12,109 6,800 5,309 Office and computer equipment 7,510 5,669 1,841 Buildings 29,725 4,489 25,236 Capital inventory and capital work in progress 46,050 — 46,050 Land 10,472 — 10,472 903,105 334,546 568,559 Assets under finance lease Heavy equipment 75,750 28,265 47,485 Major component parts in use 40,406 22,264 18,142 Other equipment 4,238 1,814 2,424 Licensed motor vehicles 9,669 469 9,200 130,063 52,812 77,251 Total property, plant and equipment $ 1,033,168 $ 387,358 $ 645,810 |
Finance and operating leases (T
Finance and operating leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for leases | The future minimum lease payments and receipts from non-cancellable leases as at December 31, 2023, for the periods shown are as follows: Payments Receipts For the year ending December 31, Finance Leases Operating Leases Operating leases 2024 $ 25,697 $ 2,307 $ 683 2025 14,307 1,727 — 2026 9,721 1,579 — 2027 6,094 1,381 — 2028 and thereafter 2,081 9,358 — Total minimum lease payments $ 57,900 $ 16,352 $ 683 Less: amount representing interest (5,049) (3,303) Carrying amount of minimum lease payments $ 52,851 $ 13,049 Less: current portion (23,691) (1,742) Long term $ 29,160 $ 11,307 |
Schedule of future minimum lease payments for finance leases | The future minimum lease payments and receipts from non-cancellable leases as at December 31, 2023, for the periods shown are as follows: Payments Receipts For the year ending December 31, Finance Leases Operating Leases Operating leases 2024 $ 25,697 $ 2,307 $ 683 2025 14,307 1,727 — 2026 9,721 1,579 — 2027 6,094 1,381 — 2028 and thereafter 2,081 9,358 — Total minimum lease payments $ 57,900 $ 16,352 $ 683 Less: amount representing interest (5,049) (3,303) Carrying amount of minimum lease payments $ 52,851 $ 13,049 Less: current portion (23,691) (1,742) Long term $ 29,160 $ 11,307 |
Schedule of future minimum lease payments for lessor operating leases | The future minimum lease payments and receipts from non-cancellable leases as at December 31, 2023, for the periods shown are as follows: Payments Receipts For the year ending December 31, Finance Leases Operating Leases Operating leases 2024 $ 25,697 $ 2,307 $ 683 2025 14,307 1,727 — 2026 9,721 1,579 — 2027 6,094 1,381 — 2028 and thereafter 2,081 9,358 — Total minimum lease payments $ 57,900 $ 16,352 $ 683 Less: amount representing interest (5,049) (3,303) Carrying amount of minimum lease payments $ 52,851 $ 13,049 Less: current portion (23,691) (1,742) Long term $ 29,160 $ 11,307 |
Schedule of lease expenses and income | Year ended December 31, 2023 2022 Short-term lease expense $ 15,305 $ 23,003 Operating lease expense 3,007 4,588 Operating lease income (6,182) (6,831) |
Schedule of supplemental information | December 31, 2023 December 31, 2022 Weighted-average remaining lease term (in years): Finance leases 2.6 1.9 Operating leases 10.3 10.2 Weighted-average discount rate: Finance leases 5.19 % 3.53 % Operating leases 4.59 % 4.64 % |
Investments in affiliates and_2
Investments in affiliates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of interests in various affiliates and joint ventures | The following is a summary of the Company's interests in its various affiliates and joint ventures, which it accounts for using the equity method: Affiliate or joint venture name: Interest Nuna Group of Companies ("Nuna") Nuna Logistics Ltd. 49 % North American Nuna Joint Venture 50 % Nuna East Ltd. 37 % Nuna Pang Contracting Ltd. 37 % Nuna West Mining Ltd. 49 % Mikisew North American Limited Partnership ("MNALP") 49 % Fargo joint ventures "Fargo" ASN Constructors ("ASN") 30 % Red River Valley Alliance LLC ("RRVA") 15 % NAYL Realty Inc. 49 % BNA Remanufacturing Limited Partnership 50 % Barrooghumba WPH Pty Ltd. 50 % Ngaliku WPH Pty Ltd. 50 % Dene North Site Services Partnership (i) 49 % (i) As of January 1, 2023, the Dene North Site Services Partnership has been dissolved. |
Schedule of investments in affiliates and joint ventures | The following is a summary of the Company's interests in its various affiliates and joint ventures, which it accounts for using the equity method: Affiliate or joint venture name: Interest Nuna Group of Companies ("Nuna") Nuna Logistics Ltd. 49 % North American Nuna Joint Venture 50 % Nuna East Ltd. 37 % Nuna Pang Contracting Ltd. 37 % Nuna West Mining Ltd. 49 % Mikisew North American Limited Partnership ("MNALP") 49 % Fargo joint ventures "Fargo" ASN Constructors ("ASN") 30 % Red River Valley Alliance LLC ("RRVA") 15 % NAYL Realty Inc. 49 % BNA Remanufacturing Limited Partnership 50 % Barrooghumba WPH Pty Ltd. 50 % Ngaliku WPH Pty Ltd. 50 % Dene North Site Services Partnership (i) 49 % (i) As of January 1, 2023, the Dene North Site Services Partnership has been dissolved. The following table summarizes the movement in the investments in affiliates and joint ventures balance during the year: December 31, 2023 December 31, 2022 Balance, beginning of the year $ 75,637 $ 55,974 Additions arising from the acquisition of MacKellar 85 — Share of net income 25,815 37,053 Dividends and advances received from affiliates and joint ventures (21,543) (12,760) Intercompany eliminations and other 1,441 (4,630) Balance, end of the year $ 81,435 $ 75,637 The financial information for the Company's share of the investments in affiliates and joint ventures accounted for using the equity method is summarized as follows: Balance Sheets December 31, 2023 Nuna MNALP Fargo Other entities Total Assets Cash $ 9,944 $ 4,184 $ 87,418 $ 222 $ 101,768 Other current assets 34,937 36,060 4,556 4,593 80,146 Non-current assets 23,884 37,103 172,818 10,434 244,239 Total assets $ 68,765 $ 77,347 $ 264,792 $ 15,249 $ 426,153 Liabilities Contract liabilities $ 7,817 $ — $ 76,481 $ 52 $ 84,350 Other current liabilities (excluding current portion of long-term debt) 5,145 29,216 33,122 1,871 69,354 Long-term debt (including current portion) 9,631 36,596 132,818 6,221 185,266 Non-current liabilities 4,985 — 589 174 5,748 Total liabilities $ 27,578 $ 65,812 $ 243,010 $ 8,318 $ 344,718 Net investments in affiliates and joint ventures $ 41,187 $ 11,535 $ 21,782 $ 6,931 $ 81,435 December 31, 2022 Nuna MNALP Fargo Other entities Total Assets Cash $ 6,559 $ 1,467 $ 81,326 $ 800 $ 90,152 Other current assets 82,147 39,106 1,776 3,495 126,524 Non-current assets 18,422 29,143 93,007 12,510 153,082 Total assets $ 107,128 $ 69,716 $ 176,109 $ 16,805 $ 369,758 Liabilities Contract liabilities $ 8,788 $ — $ 66,490 $ 4 $ 75,282 Other current liabilities (excluding current portion of long-term debt) 21,858 38,397 11,967 1,415 73,637 Long-term debt (including current portion) 17,900 26,180 89,295 5,906 139,281 Non-current liabilities 4,778 — 612 531 5,921 Total liabilities $ 53,324 $ 64,577 $ 168,364 $ 7,856 $ 294,121 Net investments in affiliates and joint ventures $ 53,804 $ 5,139 $ 7,745 $ 8,949 $ 75,637 Statements of Operations Year ended December 31, 2023 Nuna MNALP Fargo Other entities Total Revenue $ 165,741 $ 395,040 $ 117,543 $ 7,975 $ 686,299 Gross profit 9,622 13,954 25,353 709 49,638 Income (loss) before taxes 1,246 10,869 15,344 (639) 26,820 Net income (loss) $ 1,098 $ 10,869 $ 14,522 $ (674) $ 25,815 Year ended December 31, 2022 Nuna MNALP Fargo Other entities Total Revenue $ 213,745 $ 330,259 $ 40,598 $ 11,431 $ 596,033 Gross profit 30,667 10,216 6,575 2,123 49,581 Income before taxes 21,741 8,825 7,049 1,881 39,496 Net income $ 19,298 $ 8,825 $ 7,049 $ 1,881 $ 37,053 The following table provides the material aggregate outstanding balances with affiliates and joint ventures. Accounts payable and accrued liabilities due to joint ventures and affiliates do not bear interest, are unsecured and without fixed terms of repayment. Accounts receivable from certain joint ventures and affiliates bear interest at various rates, and all other accounts receivable amounts are non-interest bearing. December 31, 2023 December 31, 2022 Accounts receivable $ 41,157 $ 65,294 Contract assets 12,019 — Other assets 350 2,444 Accounts payable and accrued liabilities 15,087 13,773 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Note December 31, 2023 December 31, 2022 Deferred financing costs $ 5,891 $ 887 Goodwill 526 543 Loans to affiliates and joint ventures 350 2,444 Derivative financial instruments 15(b) 229 778 Long-term prepaid lease payments 148 1,085 Deferred lease inducement asset — 71 $ 7,144 $ 5,808 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of differences between tax provision and Federal and Provincial statutory income taxes | The reasons for the differences are as follows: Year ended December 31, 2023 2022 Income before income taxes $ 85,963 $ 84,445 Equity earnings in affiliates and joint ventures (25,815) (37,053) $ 60,148 $ 47,392 Tax rate 23.00 % 23.00 % Expected expense $ 13,834 $ 10,900 Adjustments related to: Stock-based compensation 1,092 1,090 Foreign tax rate differential 2,164 183 Tax on equity earnings in affiliates and joint ventures 5,936 5,162 Other (204) (262) Total income tax expense $ 22,822 $ 17,073 Current income tax expense $ 6,841 $ 1,627 Deferred income tax expense 15,981 15,446 Total income tax expense $ 22,822 $ 17,073 |
Schedule of deferred tax assets and liabilities | The deferred tax assets and liabilities are summarized below: December 31, 2023 December 31, 2022 Deferred tax assets: Non-capital and net capital loss carryforwards $ 26,713 $ 33,630 Finance lease obligations 23,116 17,981 Operating lease obligations 6,161 3,415 Stock-based compensation 4,913 4,200 Transaction costs 1,858 — Other 10,051 2,241 $ 72,812 $ 61,467 Deferred tax liabilities: Contract assets $ 5,693 $ 3,199 Property, plant and equipment 168,813 123,274 Other 7,130 6,494 $ 181,636 $ 132,967 Net deferred income tax liability $ 108,824 $ 71,500 Classified as: December 31, 2023 December 31, 2022 Deferred tax asset $ — $ 387 Deferred tax liability (108,824) (71,887) $ (108,824) $ (71,500) |
Schedule of non-capital losses for income tax purposes | At December 31, 2023, the Company has non-capital loss carryforwards of $116,143, which expire as follows: December 31, 2023 2026 $ 3 2027 278 2032 175 2033 9,095 2037 5 2039 118 2040 82,668 2041 16,816 2042 3,677 2043 3,308 $ 116,143 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | Note December 31, 2023 December 31, 2022 Payroll liabilities $ 28,524 $ 16,082 Current portion of DSU liabilities 20(c) — 5,099 Income and other taxes payable 26,515 8,189 Loans from affiliates and joint ventures 11,387 — Obligation related to MacKellar acquisition 20,070 — Obligation related to DGI acquisition 2,431 1,720 Deferred consideration related to ML Northern acquisition 21(b) — 5,002 Dividends payable 16(d) 2,674 2,098 Other 3,125 5,594 $ 94,726 $ 43,784 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | Note December 31, 2023 December 31, 2022 Credit Facility 13(a) $ 317,488 $ 180,000 Convertible debentures 13(b) 129,750 129,750 Equipment financing 13(c) 220,466 85,931 Mortgage 13(f) 28,429 29,231 Unamortized deferred financing costs 13(g) (3,514) (4,371) $ 692,619 $ 420,541 Less: current portion of long-term debt (81,306) (42,089) $ 611,313 $ 378,452 Note December 31, 2023 December 31, 2022 Finance lease obligations 8 $ 52,851 $ 41,804 Financing obligations 13(d) 162,266 32,889 Promissory notes 13(e) 5,349 11,238 Equipment financing $ 220,466 $ 85,931 Year ended, December 31, 2023 December 31, 2022 Additions Payments Change in foreign exchange rates Additions Payments Finance lease obligations $ 58,675 $ (48,601) $ 973 $ 14,526 $ (27,443) Financing obligations 233,668 (110,306) 6,015 — (15,056) Promissory notes — (5,889) — 3,400 (5,372) $ 292,343 $ (164,796) $ 6,988 $ 17,926 $ (47,871) December 31, 2023 December 31, 2022 Cost $ 6,336 $ 6,336 Accumulated amortization 2,822 1,965 $ 3,514 $ 4,371 |
Schedule of convertible debt | b) Convertible debentures December 31, 2023 December 31, 2022 5.50% convertible debentures $ 74,750 $ 74,750 5.00% convertible debentures 55,000 55,000 $ 129,750 $ 129,750 The terms of the convertible debentures are summarized as follows: Date of issuance Maturity Conversion price Debt issuance costs 5.50% convertible debentures June 1, 2021 June 30, 2028 $ 24.50 $ 3,531 5.00% convertible debentures March 20, 2019 March 31, 2026 $ 25.60 $ 2,691 |
Other long term obligations (Ta
Other long term obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other long term obligations | Note December 31, 2023 December 31, 2022 DSU liabilities 20(c) $ 21,361 $ 13,159 Long-term contract liabilities 5(b) 16,114 — Obligation related to MacKellar acquisition 93,356 — Obligation related to DGI acquisition — 2,142 Other 3,526 3,275 $ 134,357 $ 18,576 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Fair Value Hierarchy Level Carrying Fair Carrying Fair Convertible debentures Level 1 129,750 160,072 129,750 131,795 Financing obligations Level 2 162,266 159,900 32,889 30,783 Mortgage Level 2 28,429 22,780 29,231 24,329 |
Schedule of reconciliation of level 3 recurring fair value measurements | Reconciliation of Level 3 recurring fair value measurements: December 31, 2023 December 31, 2022 Balance, beginning of the year $ 3,862 $ 4,669 Additions to level 3 114,096 — Changes in fair value recognized in earnings 4,681 292 Changes in foreign exchange rates 3,587 — Payments (10,369) (1,099) Balance, end of the year $ 115,857 $ 3,862 |
Schedule of credit risk | The following customers accounted for 10% or more of total revenues: Year ended December 31, 2023 2022 Customer A 27 % 21 % Customer B 23 % 31 % Customer C 20 % 24 % Customer D 9 % 14 % The following customers represented 10% or more of accounts receivable and contract assets: December 31, 2023 December 31, 2022 Customer 1 22 % — % Customer 2 16 % 32 % Customer 3 13 % 16 % Customer 4 9 % 15 % Customer 5 2 % 11 % |
Schedule of maximum exposure to credit risk for accounts receivable and contract assets | The Company’s exposure to credit risk for accounts receivable and contract assets is as follows: December 31, 2023 December 31, 2022 Trade accounts receivable $ 65,386 $ 39,625 Holdbacks 363 372 Accrued trade receivables 16,556 33,207 Contract receivables, included in accounts receivable $ 82,305 $ 73,204 Other receivables 15,550 10,607 Total accounts receivable $ 97,855 $ 83,811 Contract assets 35,027 15,802 Total $ 132,882 $ 99,613 |
Schedule of trade receivables and holdbacks aging | As at December 31, 2023, and December 31, 2022, trade receivables and holdbacks are aged as follows: December 31, 2023 December 31, 2022 Not past due $ 53,007 $ 31,923 Past due 1-30 days 8,790 6,190 Past due 31-60 days 1,772 1,174 More than 61 days 2,180 710 Total $ 65,749 $ 39,997 |
Shares (Tables)
Shares (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of common shares | Common shares Treasury shares Common shares, net of treasury shares Issued and outstanding at December 31, 2021 30,022,928 (1,564,813) 28,458,115 Retired through share purchase program (2,195,646) — (2,195,646) Purchase of treasury shares — (26,012) (26,012) Settlement of certain equity classified stock-based compensation — 184,364 184,364 Issued and outstanding at December 31, 2022 27,827,282 (1,406,461) 26,420,821 Purchase of treasury shares — (20,955) (20,955) Settlement of certain equity classified stock-based compensation — 337,229 337,229 Issued and outstanding at December 31, 2023 27,827,282 (1,090,187) 26,737,095 |
Schedule of net income per share | Year ended December 31, 2023 2022 Net income $ 63,141 $ 67,372 Interest from convertible debentures (after tax) 5,925 5,893 Diluted net income available to common shareholders $ 69,066 $ 73,265 Weighted-average number of common shares 26,566,846 27,406,140 Weighted-average effect of dilutive securities Dilutive effect of treasury shares 1,260,436 1,485,275 Dilutive effect of 5.00% convertible debentures 2,148,438 2,095,236 Dilutive effect of 5.50% convertible debentures 3,051,020 3,020,199 Weighted-average number of diluted common shares 33,026,740 34,006,850 Basic net income per share $ 2.38 $ 2.46 Diluted net income per share $ 2.09 $ 2.15 |
Schedule of dividends | Date declared Per share Shareholders on record as of Paid or payable to shareholders Total paid or payable Q1 2022 February 15, 2022 $ 0.08 March 4, 2022 April 8, 2022 $ 2,277 Q2 2022 April 26, 2022 $ 0.08 May 27, 2022 July 8, 2022 $ 2,232 Q3 2022 July 26, 2022 $ 0.08 August 31, 2022 October 7, 2022 $ 2,127 Q4 2022 October 25, 2022 $ 0.08 November 30, 2022 January 6, 2023 $ 2,098 Q1 2023 February 14, 2023 $ 0.10 March 3, 2023 April 6, 2023 $ 2,621 Q2 2023 April 25, 2023 $ 0.10 May 26, 2023 July 7, 2023 $ 2,641 Q3 2023 July 25, 2023 $ 0.10 August 31, 2023 October 6, 2023 $ 2,674 Q4 2023 October 31, 2023 $ 0.10 November 30, 2023 January 5, 2024 $ 2,674 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of results by business segment | For the year ended December 31, 2023 Heavy Equipment - Canada Heavy Equipment - Australia Other Eliminations Total Revenue from external customers $ 760,590 $ 153,877 $ 17,981 $ — $ 932,448 Revenue from intersegment transactions 6,330 4,731 21,982 (8,271) 24,772 Depreciation expense 116,660 13,240 — 1,419 131,319 Segment gross profits 104,167 40,607 11,986 (2,543) 154,217 Segment assets 1,079,370 718,114 101,709 (352,715) 1,546,478 Purchase of property, plant and equipment 146,442 56,367 — — 202,809 For the year ended December 31, 2022 Heavy Equipment - Canada Heavy Equipment - Australia Other Eliminations Total Revenue from external customers $ 700,863 $ 30,693 $ 21,016 $ — $ 752,572 Revenue from intersegment transactions 7,923 — 35,947 (26,903) 16,967 Depreciation expense 119,054 183 — 31 119,268 Segment gross profits 81,754 6,721 15,627 (2,554) 101,548 Segment assets 874,374 29,361 94,702 (18,924) 979,513 Purchase of property, plant and equipment 111,295 204 — — 111,499 |
Schedule of reconciliations | For the year ended December 31, 2023 2022 Total gross profit for reportable segments $ 154,217 $ 101,548 Less: unallocated corporate items: General and administrative costs 56,844 29,855 Loss on disposal of property, plant and equipment 1,659 536 Equity earnings in affiliates and joint ventures (25,815) (37,053) Interest expense 36,948 24,543 Change in fair value of contingent consideration 4,681 — Gain on derivative financial instruments (6,063) (778) Income before income taxes $ 85,963 $ 84,445 |
Schedule of revenue, by geographical areas | 2023 2022 Canada $ 795,472 733,328 Australia 151,789 24,187 United States 9,959 12,024 $ 957,220 769,539 |
Schedule of long-lived assets, by geographical areas | 2023 2022 Canada $ 601,537 665,936 Australia 568,306 7,581 $ 1,169,843 673,517 |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of cost of sales | Year ended December 31, 2023 2022 Salaries, wages and benefits $ 292,226 $ 241,113 Repair parts and consumable supplies 198,730 131,460 Subcontractor services 100,572 91,666 Equipment and component sales 46,084 41,302 Third-party equipment rentals 18,727 22,964 Fuel 8,410 12,963 Other 6,935 7,255 $ 671,684 $ 548,723 |
Interest expense net (Tables)
Interest expense net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest Expense [Abstract] | |
Schedule of interest expense, net | Year ended December 31, 2023 2022 Credit Facility $ 16,781 $ 9,250 Convertible debentures 6,843 6,861 Equipment financing 5,046 3,344 Interest on customer supply chain financing 4,493 2,196 Mortgage 979 1,006 Amortization of deferred financing costs 1,635 1,076 Interest expense 35,777 23,733 Other interest expense, net 1,171 810 $ 36,948 $ 24,543 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
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, Note 2023 2022 Restricted share unit plan 20(a) $ 2,702 $ 2,154 Performance restricted share unit plan 20(b) 2,677 2,522 Deferred stock unit plan 20(c) 10,449 104 $ 15,828 $ 4,780 |
Schedule of restricted share unit plan activity | Number of units Weighted-average exercise price Outstanding at December 31, 2021 553,411 13.55 Granted 167,631 15.55 Vested (169,689) 14.13 Forfeited (15,455) 13.41 Outstanding at December 31, 2022 535,898 14.44 Granted 199,468 27.44 Vested (256,193) 8.77 Forfeited (13,867) 17.60 Outstanding at December 31, 2023 465,306 23.04 |
Schedule of performance restricted share units | Number of units Weighted-average exercise price Outstanding at December 31, 2021 426,569 12.06 Granted 116,775 15.55 Vested (111,630) 14.13 Outstanding at December 31, 2022 431,714 12.47 Granted 101,597 25.62 Vested (213,623) 8.48 Outstanding at December 31, 2023 319,688 19.32 |
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, 2023 and 2022 using a Monte Carlo simulation with the following assumptions: 2023 2022 Risk-free interest rate 4.21 % 3.14 % Expected volatility 38.90 % 48.70 % |
Schedule of stock plan activity | Number of units Outstanding at December 31, 2021 932,644 Granted 87,569 Redeemed — Outstanding at December 31, 2022 1,020,213 Granted 31,575 Redeemed (286,152) Outstanding at December 31, 2023 765,636 |
Business acquisitions (Tables)
Business acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of fair value of the assets acquired and liabilities assumed at the acquisition date | The following table summarizes the total consideration paid for MacKellar and the fair values of the assets acquired and liabilities assumed at the acquisition date: October 1, 2023 Cash consideration $ 65,572 Earn-out at estimated fair value 79,839 Deferred consideration at estimated fair value 27,014 Contingent payment at estimated fair value 7,243 Total consideration transferred $ 179,668 Equipment financing assumed 203,946 Total purchase price $ 383,614 Purchase price allocation to assets acquired and liabilities assumed: Cash $ 13,901 Accounts receivable 65,033 Contract assets 713 Inventories 12,155 Prepaid expenses 2,187 Property, plant and equipment 394,394 Investments in affiliates and joint ventures 85 Intangible assets 690 Accounts payable (45,829) Accrued liabilities (22,464) Other long-term obligations (16,934) Deferred income tax liabilities (20,317) Third party equipment financing assumed: Financing obligations (173,430) Finance leases (30,516) Total identifiable net assets at fair value $ 179,668 The following table summarizes the total consideration paid for ML Northern and the fair value of the assets acquired and liabilities assumed at the acquisition date: Purchase price allocation to assets acquired and liabilities assumed: October 1, 2022 Property, plant and equipment and working capital Cash $ 795 Accounts receivable 4,068 Prepaid expenses 30 Property, plant and equipment 9,562 Operating lease right-of-use asset 131 Accounts payable (48) Accrued liabilities (599) Deferred tax liabilities (216) $ 13,723 Lease liabilities Finance lease liabilities $ (5,595) Operating lease liabilities (126) $ (5,721) Total identifiable net assets at fair value $ 8,002 |
Schedule of total consideration paid | The following table summarizes the total consideration paid for MacKellar and the fair values of the assets acquired and liabilities assumed at the acquisition date: October 1, 2023 Cash consideration $ 65,572 Earn-out at estimated fair value 79,839 Deferred consideration at estimated fair value 27,014 Contingent payment at estimated fair value 7,243 Total consideration transferred $ 179,668 Equipment financing assumed 203,946 Total purchase price $ 383,614 Purchase price allocation to assets acquired and liabilities assumed: Cash $ 13,901 Accounts receivable 65,033 Contract assets 713 Inventories 12,155 Prepaid expenses 2,187 Property, plant and equipment 394,394 Investments in affiliates and joint ventures 85 Intangible assets 690 Accounts payable (45,829) Accrued liabilities (22,464) Other long-term obligations (16,934) Deferred income tax liabilities (20,317) Third party equipment financing assumed: Financing obligations (173,430) Finance leases (30,516) Total identifiable net assets at fair value $ 179,668 |
Schedule of Unaudited Proforma Information | The following unaudited pro forma information gives effect to the transaction as if it had occurred on January 1, 2022. The unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred on January 1, 2022, nor are they indicative of future results of operations. Year ended December 31, 2023 2022 Revenue $ 1,296,328 $ 1,086,460 Net income 89,658 78,261 |
Other information (Tables)
Other information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Year ended December 31, 2023 2022 Cash paid during the year for: Interest $ 33,498 $ 24,084 Income taxes 1,370 — Cash received during the year for: Interest 446 177 Non-cash transactions: Addition of property, plant and equipment by means of finance leases 28,159 8,931 Addition of property, plant and equipment by means of finance leases assumed through acquisition 30,516 — Increase in assets held for sale, offset by property, plant and equipment 10,927 4,276 Non-cash working capital exclusions: Net increase in accounts receivable related to realized gain on derivative financial instruments 4,015 — Net decrease (increase) in accounts payable and accrued liabilities related to loans from affiliates and joint ventures 2,113 (13,500) Net decrease in accrued liabilities related to conversion of bonus compensation to deferred stock units — 639 Net increase in accrued liabilities related to the current portion of deferred stock unit liability — (5,099) Net increase in accrued liabilities related to the current portion of contingent consideration (7,342) — Net increase in accrued liabilities related to taxes payable 367 (362) Net increase in accrued liabilities related to dividend payable (576) (961) Net increase in accrued liabilities related to deferred consideration for acquisition of MacKellar (13,439) — Net increase in accrued liabilities related to deferred consideration for acquisition of ML Northern — (5,002) Non-cash working capital transactions related to acquisitions (note 21) Increase in accounts receivable 65,033 4,068 Increase in contract assets 713 — Increase in inventory 12,155 — Increase in prepaid expenses 2,187 30 Increase in accounts payable (45,829) (48) Increase in accrued liabilities (22,464) (599) Non-cash working capital movement from change in foreign exchange rates Increase in accounts receivable 2,073 — Increase in contract assets 23 — Increase in inventory 387 — Increase in prepaid expenses 70 — Increase in accounts payable (1,727) — Increase in accrued liabilities (828) — |
Schedule of cash provided by (used in) non-cash working capital | The table below represents the cash provided by (used in) non-cash working capital: Year ended December 31, 2023 2022 Operating activities: Accounts receivable $ 57,077 $ (10,956) Contract assets (18,489) (6,043) Inventories (2,522) (5,354) Contract costs — 2,673 Prepaid expenses and deposits 6,379 (3,453) Accounts payable 9,585 12,750 Accrued liabilities 372 (989) Contract liabilities (1,352) (1,938) $ 51,050 $ (13,310) |
Significant accounting polici_4
Significant accounting policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 CAD ($) category | |
Concentration Risk [Line Items] | |
Number of categories | category | 3 |
Daily and monthly payment terms (in days) | The Company’s invoicing frequency and payment terms are in accordance with negotiated customer contracts. Customer invoicing can range between daily and monthly and payment terms generally range between net 15 and net 60 days |
Accounts receivable – holdback percentage | 10% |
Goodwill impairment | $ 0 |
Impairment of long-lived assets | $ 0 |
Significant accounting polici_5
Significant accounting policies - Property, plant and equipment (Details) | Dec. 31, 2023 |
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 | 120000 hours |
Major component parts in use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2500 hours |
Major component parts in use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 70000 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 | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 4 years |
Office and computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Furnishings, fixtures and facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Furnishings, fixtures and facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 50 years |
Significant accounting polici_6
Significant accounting policies - Intangible assets (Details) | Dec. 31, 2023 |
Internal-use software | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 4 years |
Customer relationship | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 4 years |
Significant accounting polici_7
Significant accounting policies - Stock-based compensation (Details) | 12 Months Ended |
Dec. 31, 2023 d | |
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 | 5 |
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 |
Significant accounting polici_8
Significant accounting policies - Business combinations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
MacKellar | |
Business Acquisition [Line Items] | |
Acquisition related costs | $ 7,095 |
Accounts receivable (Details)
Accounts receivable (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trade | $ 65,386 | $ 39,625 |
Holdbacks | 363 | 372 |
Accrued trade receivables | 16,556 | 33,207 |
Contract receivables | 82,305 | 73,204 |
Other | 15,550 | 10,607 |
Total accounts receivable | $ 97,855 | $ 83,811 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 957,220 | $ 769,539 |
Operations support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 886,963 | 688,734 |
Equipment and component sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 57,822 | 48,728 |
Construction services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,435 | 32,077 |
As-invoiced | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 600,744 | 522,415 |
Cost-to-cost percent complete | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 298,654 | 198,396 |
Point-in-time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 57,822 | 48,728 |
Time-and-materials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 575,608 | 523,468 |
Unit-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 363,979 | 234,047 |
Lump-sum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 17,633 | $ 12,024 |
Revenue - Contract balances (De
Revenue - Contract balances (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 35,027 | $ 15,802 |
Contract liabilities | 59 | 1,411 |
Long-term contract liabilities | 16,114 | 0 |
Performance Obligation | ||
Revenue recognized (derecognized) | $ 2,598 | $ (1,201) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 1,411,000 | $ 3,349,000 |
Revenue | 957,220,000 | 769,539,000 |
Variable consideration - unpriced contract modifications | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,032,000 | 0 |
Variable consideration - unpriced contract modifications | ||
Disaggregation of Revenue [Line Items] | ||
Uncollected consideration | $ 9,482,000 | $ 1,487,000 |
Revenue - Remaining performance
Revenue - Remaining performance obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 $ in Thousands | Dec. 31, 2023 CAD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 22,797 |
Remaining performance obligation, period | 1 year |
Inventories (Details)
Inventories (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Public Utilities, Inventory [Line Items] | ||
Inventory, net | $ 64,962 | $ 49,898 |
Repair parts | ||
Public Utilities, Inventory [Line Items] | ||
Inventory, net | 41,358 | 26,036 |
Tires and track frames | ||
Public Utilities, Inventory [Line Items] | ||
Inventory, net | 6,478 | 3,372 |
Fuel and lubricants | ||
Public Utilities, Inventory [Line Items] | ||
Inventory, net | 1,941 | 2,237 |
Parts and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventory, net | 49,777 | 31,645 |
Parts, supplies and components for equipment rebuilds | ||
Public Utilities, Inventory [Line Items] | ||
Inventory, net | 13,898 | 14,899 |
Customer rebuild work in process | ||
Public Utilities, Inventory [Line Items] | ||
Inventory, net | $ 1,287 | $ 3,354 |
Property. plant and equipment (
Property. plant and equipment (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | $ 1,470,494 | $ 903,105 |
Owned assets, accumulated depreciation | 394,143 | 334,546 |
Owned assets, net book value | 1,076,351 | 568,559 |
Assets under finance lease, cost | 95,797 | 130,063 |
Assets under finance least, accumulated depreciation | 29,202 | 52,812 |
Assets under finance lease, net book value | 66,595 | 77,251 |
Total plant and equipment, cost | 1,566,291 | 1,033,168 |
Property, plant and equipment, accumulated depreciation | 423,345 | 387,358 |
Property, plant and equipment, net book value | 1,142,946 | 645,810 |
Heavy equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 503,359 | 368,318 |
Owned assets, accumulated depreciation | 133,448 | 123,695 |
Owned assets, net book value | 369,911 | 244,623 |
Assets under finance lease, cost | 64,691 | 75,750 |
Assets under finance least, accumulated depreciation | 19,435 | 28,265 |
Assets under finance lease, net book value | 45,256 | 47,485 |
Major component parts in use | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 747,036 | 388,169 |
Owned assets, accumulated depreciation | 207,969 | 163,124 |
Owned assets, net book value | 539,067 | 225,045 |
Assets under finance lease, cost | 28,514 | 40,406 |
Assets under finance least, accumulated depreciation | 9,580 | 22,264 |
Assets under finance lease, net book value | 18,934 | 18,142 |
Other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 49,207 | 40,752 |
Owned assets, accumulated depreciation | 33,952 | 30,769 |
Owned assets, net book value | 15,255 | 9,983 |
Assets under finance lease, cost | 37 | 4,238 |
Assets under finance least, accumulated depreciation | 12 | 1,814 |
Assets under finance lease, net book value | 25 | 2,424 |
Licensed motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 20,051 | 12,109 |
Owned assets, accumulated depreciation | 7,207 | 6,800 |
Owned assets, net book value | 12,844 | 5,309 |
Assets under finance lease, cost | 2,555 | 9,669 |
Assets under finance least, accumulated depreciation | 175 | 469 |
Assets under finance lease, net book value | 2,380 | 9,200 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 10,133 | 7,510 |
Owned assets, accumulated depreciation | 6,336 | 5,669 |
Owned assets, net book value | 3,797 | 1,841 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 45,681 | 29,725 |
Owned assets, accumulated depreciation | 5,231 | 4,489 |
Owned assets, net book value | 40,450 | 25,236 |
Capital inventory and capital work in progress | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 84,555 | 46,050 |
Owned assets, accumulated depreciation | 0 | 0 |
Owned assets, net book value | 84,555 | 46,050 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Owned assets, cost | 10,472 | 10,472 |
Owned assets, accumulated depreciation | 0 | 0 |
Owned assets, net book value | $ 10,472 | $ 10,472 |
Finance and operating leases -
Finance and operating leases - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Leases for terms | 5 years | |
Depreciation of equipment under finance leases | $ 11,194 | $ 18,573 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Finance and operating leases, term of contract | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Finance and operating leases, term of contract | 15 years |
Finance and operating leases _2
Finance and operating leases - Minimum lease payments and receipts (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payments Finance Leases | ||
2024 | $ 25,697 | |
2025 | 14,307 | |
2026 | 9,721 | |
2027 | 6,094 | |
2028 and thereafter | 2,081 | |
Total minimum lease payments | 57,900 | |
Less: amount representing interest | (5,049) | |
Carrying amount of minimum lease payments | 52,851 | |
Less: current portion | (23,691) | |
Long term | 29,160 | |
Payments Operating Leases | ||
2024 | 2,307 | |
2025 | 1,727 | |
2026 | 1,579 | |
2027 | 1,381 | |
2028 and thereafter | 9,358 | |
Total minimum lease payments | 16,352 | |
Less: amount representing interest | (3,303) | |
Carrying amount of minimum lease payments | 13,049 | |
Less: current portion | (1,742) | $ (2,470) |
Long term | 11,307 | $ 12,376 |
Receipts Operating Leases | ||
2024 | 683 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 and thereafter | 0 | |
Total minimum lease payments | $ 683 |
Finance and operating leases _3
Finance and operating leases - Lease expenses and income (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Short-term lease expense | $ 15,305 | $ 23,003 |
Operating lease expense | 3,007 | 4,588 |
Operating lease income | $ (6,182) | $ (6,831) |
Finance and operating leases _4
Finance and operating leases - Supplemental balance sheet information (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term (in years): | ||
Finance leases | 2 years 7 months 6 days | 1 year 10 months 24 days |
Operating leases | 10 years 3 months 18 days | 10 years 2 months 12 days |
Weighted-average discount rate: | ||
Finance leases | 5.19% | 3.53% |
Operating leases | 4.59% | 4.64% |
Investments in affiliates and_3
Investments in affiliates and joint ventures - Ownership Percentages (Details) | Dec. 31, 2023 |
Nuna Logistics Ltd. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 49% |
North American Nuna Joint Venture | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50% |
Nuna East Ltd. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 37% |
Nuna Pang Contracting Ltd. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 37% |
Nuna West Mining Ltd. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 49% |
Mikisew North American Limited Partnership ("MNALP") | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 49% |
ASN Constructors ("ASN") | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 30% |
Red River Valley Alliance LLC ("RRVA") | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 15% |
NAYL Realty Inc. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 49% |
BNA Remanufacturing Limited Partnership | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50% |
Barrooghumba WPH Pty Ltd. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50% |
Ngaliku WPH Pty Ltd. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50% |
Dene North Site Services Partnership | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 49% |
Investments in affiliates and_4
Investments in affiliates and joint ventures - Summary of Movement in Investments In Affiliates and Joint Ventures (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity Method Investment, Financial Statement, Reported Amounts [Roll Forward] | ||
Balance, beginning of the year | $ 75,637 | $ 55,974 |
Additions arising from the acquisition of MacKellar | 85 | 0 |
Share of net income | 25,815 | 37,053 |
Dividends and advances received from affiliates and joint ventures | (21,543) | (12,760) |
Intercompany eliminations and other | 1,441 | (4,630) |
Balance, end of the year | $ 81,435 | $ 75,637 |
Investments in affiliates and_5
Investments in affiliates and joint ventures - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Cost of purchased equipment | $ 202,809 | $ 111,499 | |
Final cash distributions amount | 19,330 | 12,760 | |
Net cash outflow after offset | 387 | 0 | |
Contract asset, current | 35,027 | 15,802 | |
Revenue | 957,220 | 769,539 | |
Accounts receivable | 97,855 | 83,811 | |
Dene North Site Services Partnership | |||
Variable Interest Entity [Line Items] | |||
Cost of purchased equipment | $ 2,600 | ||
Final cash distributions amount | 2,213 | ||
Net cash outflow after offset | $ 387 | ||
Nuna | |||
Variable Interest Entity [Line Items] | |||
Revenue | 165,741 | 213,745 | |
Nuna | Variable Consideration - Unpriced Contract Modifications | |||
Variable Interest Entity [Line Items] | |||
Contract asset, current | 8,701 | 1,391 | |
Mikisew North American Limited Partnership ("MNALP") | |||
Variable Interest Entity [Line Items] | |||
Revenue | 395,040 | 330,259 | |
Accounts receivable | 61,111 | 66,680 | |
Equity Method Investee | |||
Variable Interest Entity [Line Items] | |||
Contract asset, current | 12,019 | 0 | |
Revenue | 773,512 | 666,069 | |
Accounts receivable | $ 41,157 | $ 65,294 |
Investments in affiliates and_6
Investments in affiliates and joint ventures - Balance Sheets (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash | $ 88,614 | $ 69,144 |
Total assets | 1,546,478 | 979,513 |
Liabilities | ||
Total liabilities | 1,189,824 | 673,594 |
Nuna | ||
Assets | ||
Cash | 9,944 | 6,559 |
Other current assets | 34,937 | 82,147 |
Non-current assets | 23,884 | 18,422 |
Total assets | 68,765 | 107,128 |
Liabilities | ||
Contract liabilities | 7,817 | 8,788 |
Other current liabilities (excluding current portion of long-term debt) | 5,145 | 21,858 |
Long-term debt (including current portion) | 9,631 | 17,900 |
Non-current liabilities | 4,985 | 4,778 |
Total liabilities | 27,578 | 53,324 |
Investments in affiliates and joint ventures | 41,187 | 53,804 |
MNALP | ||
Assets | ||
Cash | 4,184 | 1,467 |
Other current assets | 36,060 | 39,106 |
Non-current assets | 37,103 | 29,143 |
Total assets | 77,347 | 69,716 |
Liabilities | ||
Contract liabilities | 0 | 0 |
Other current liabilities (excluding current portion of long-term debt) | 29,216 | 38,397 |
Long-term debt (including current portion) | 36,596 | 26,180 |
Non-current liabilities | 0 | 0 |
Total liabilities | 65,812 | 64,577 |
Investments in affiliates and joint ventures | 11,535 | 5,139 |
Fargo | ||
Assets | ||
Cash | 87,418 | 81,326 |
Other current assets | 4,556 | 1,776 |
Non-current assets | 172,818 | 93,007 |
Total assets | 264,792 | 176,109 |
Liabilities | ||
Contract liabilities | 76,481 | 66,490 |
Other current liabilities (excluding current portion of long-term debt) | 33,122 | 11,967 |
Long-term debt (including current portion) | 132,818 | 89,295 |
Non-current liabilities | 589 | 612 |
Total liabilities | 243,010 | 168,364 |
Investments in affiliates and joint ventures | 21,782 | 7,745 |
Other entities | ||
Assets | ||
Cash | 222 | 800 |
Other current assets | 4,593 | 3,495 |
Non-current assets | 10,434 | 12,510 |
Total assets | 15,249 | 16,805 |
Liabilities | ||
Contract liabilities | 52 | 4 |
Other current liabilities (excluding current portion of long-term debt) | 1,871 | 1,415 |
Long-term debt (including current portion) | 6,221 | 5,906 |
Non-current liabilities | 174 | 531 |
Total liabilities | 8,318 | 7,856 |
Investments in affiliates and joint ventures | 6,931 | 8,949 |
Total | ||
Assets | ||
Cash | 101,768 | 90,152 |
Other current assets | 80,146 | 126,524 |
Non-current assets | 244,239 | 153,082 |
Total assets | 426,153 | 369,758 |
Liabilities | ||
Contract liabilities | 84,350 | 75,282 |
Other current liabilities (excluding current portion of long-term debt) | 69,354 | 73,637 |
Long-term debt (including current portion) | 185,266 | 139,281 |
Non-current liabilities | 5,748 | 5,921 |
Total liabilities | 344,718 | 294,121 |
Investments in affiliates and joint ventures | $ 81,435 | $ 75,637 |
Investments in affiliates and_7
Investments in affiliates and joint ventures - Statements of Operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 957,220 | $ 769,539 |
Gross profit | 154,217 | 101,548 |
Income (loss) before taxes | 85,963 | 84,445 |
Nuna | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 165,741 | 213,745 |
Gross profit | 9,622 | 30,667 |
Income (loss) before taxes | 1,246 | 21,741 |
Net income | 1,098 | 19,298 |
MNALP | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 395,040 | 330,259 |
Gross profit | 13,954 | 10,216 |
Income (loss) before taxes | 10,869 | 8,825 |
Net income | 10,869 | 8,825 |
Fargo | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 117,543 | 40,598 |
Gross profit | 25,353 | 6,575 |
Income (loss) before taxes | 15,344 | 7,049 |
Net income | 14,522 | 7,049 |
Other entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 7,975 | 11,431 |
Gross profit | 709 | 2,123 |
Income (loss) before taxes | (639) | 1,881 |
Net income | (674) | 1,881 |
Total | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 686,299 | 596,033 |
Gross profit | 49,638 | 49,581 |
Income (loss) before taxes | 26,820 | 39,496 |
Net income | $ 25,815 | $ 37,053 |
Investments in affiliates and_8
Investments in affiliates and joint ventures - Accounts Payable and Receivables from Joint Ventures and Affiliates (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable | $ 97,855 | $ 83,811 |
Contract assets | 35,027 | 15,802 |
Other assets | 7,144 | 5,808 |
Equity Method Investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable | 41,157 | 65,294 |
Contract assets | 12,019 | 0 |
Other assets | 350 | 2,444 |
Accounts payable and accrued liabilities | $ 15,087 | $ 13,773 |
Other assets - Schedule of othe
Other assets - Schedule of other assets (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred financing costs | $ 5,891 | $ 887 |
Goodwill | 526 | 543 |
Loans to affiliates and joint ventures | 350 | 2,444 |
Derivative financial instruments | 229 | 778 |
Long-term prepaid lease payments | 148 | 1,085 |
Deferred lease inducement asset | 0 | 71 |
Other assets, noncurrent | $ 7,144 | $ 5,808 |
Income taxes - Expense (benefit
Income taxes - Expense (benefit) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 85,963 | $ 84,445 |
Equity earnings in affiliates and joint ventures | (25,815) | (37,053) |
Income (loss) from continuing operations | $ 60,148 | $ 47,392 |
Tax rate | 23% | 23% |
Expected expense | $ 13,834 | $ 10,900 |
Adjustments related to: | ||
Stock-based compensation | 1,092 | 1,090 |
Foreign tax rate differential | 2,164 | 183 |
Tax on equity earnings in affiliates and joint ventures | 5,936 | 5,162 |
Other | (204) | (262) |
Total income tax expense | 22,822 | 17,073 |
Current income tax expense | 6,841 | 1,627 |
Deferred income tax expense | $ 15,981 | $ 15,446 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Non-capital and net capital loss carryforwards | $ 26,713 | $ 33,630 |
Finance lease obligations | 23,116 | 17,981 |
Operating lease obligations | 6,161 | 3,415 |
Stock-based compensation | 4,913 | 4,200 |
Transaction costs | 1,858 | 0 |
Other | 10,051 | 2,241 |
Deferred tax assets, net of valuation allowance | 72,812 | 61,467 |
Deferred tax liabilities: | ||
Contract assets | 5,693 | 3,199 |
Property, plant and equipment | 168,813 | 123,274 |
Other | 7,130 | 6,494 |
Deferred tax liabilities, gross | 181,636 | 132,967 |
Net deferred income tax liability | 108,824 | 71,500 |
Classified as: | ||
Deferred tax asset | 0 | 387 |
Deferred tax liability | (108,824) | (71,887) |
Net deferred income tax liability | $ (108,824) | $ (71,500) |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) $ in Thousands | Dec. 31, 2023 CAD ($) |
Income Tax Disclosure [Abstract] | |
Non-capital losses for income tax purposes | $ 116,143 |
Income taxes - Expiration of no
Income taxes - Expiration of non-capital losses for income tax purposes (Details) $ in Thousands | Dec. 31, 2023 CAD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 116,143 |
2026 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 3 |
2027 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 278 |
2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 175 |
2033 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 9,095 |
2037 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 5 |
2039 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 118 |
2040 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 82,668 |
2041 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 16,816 |
2042 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 3,677 |
2043 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 3,308 |
Accrued liabilities (Details)
Accrued liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities [Line Items] | ||
Payroll liabilities | $ 28,524 | $ 16,082 |
Current portion of DSU liabilities | 0 | 5,099 |
Income and other taxes payable | 26,515 | 8,189 |
Loans from affiliates and joint ventures | 11,387 | 0 |
Dividends payable | 2,674 | 2,098 |
Other | 3,125 | 5,594 |
Accrued liabilities | 94,726 | 43,784 |
MacKellar | ||
Accrued Liabilities [Line Items] | ||
Obligation and Deferred consideration related to acquisition | 20,070 | 0 |
Obligation related to DGI acquisition | ||
Accrued Liabilities [Line Items] | ||
Obligation and Deferred consideration related to acquisition | 2,431 | 1,720 |
Deferred consideration related to ML Northern acquisition | ||
Accrued Liabilities [Line Items] | ||
Obligation and Deferred consideration related to acquisition | $ 0 | $ 5,002 |
Long-term debt - Schedule of lo
Long-term debt - Schedule of long term debt (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Equipment financing | $ 692,619 | $ 420,541 |
Unamortized deferred financing costs | (3,514) | (4,371) |
Less: current portion of long-term debt | (81,306) | (42,089) |
Long-term portion of debt | 611,313 | 378,452 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2024 | 83,000 | |
2025 | 64,300 | |
2026 | 412,100 | |
2027 | 28,800 | |
2028 and thereafter | 107,800 | |
Credit Facility | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross | 317,488 | 180,000 |
Convertible debentures | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross | 129,750 | 129,750 |
Equipment financing | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Equipment financing | 220,466 | 85,931 |
Mortgage | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Long-term debt, gross | $ 28,429 | $ 29,231 |
Long-term debt - Credit facilit
Long-term debt - Credit facility narrative (Details) | 12 Months Ended | |||
Dec. 31, 2023 CAD ($) covenant | Dec. 31, 2023 AUD ($) | Oct. 03, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | |
Line of Credit Facility [Line Items] | ||||
Financing costs | $ 6,336,000 | $ 6,336,000 | ||
Credit facility | Financial Guarantee | Mikisew North American Limited Partnership ("MNALP") | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity of credit facility | 110,000,000 | |||
Revolver | Credit facility | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity of credit facility | 478,000,000 | |||
Finance lease borrowing limit | $ 350,000,000 | |||
Other outstanding debt limit | $ 20,000,000 | |||
Financing costs | 5,800,000 | |||
Amount outstanding during period | 31,300,000 | 32,000,000 | ||
Unused borrowing availability under the revolving facility | 129,300,000 | 88,000,000 | ||
Unused borrowing availability under finance lease obligations | $ 60,100,000 | $ 46,600,000 | ||
Number of financial covenants | covenant | 2 | |||
Total debt to bank EBITDA ratio | 3.5 | 3.5 | ||
Fixed charge ratio | 1.1 | 1.1 | ||
Revolver | Credit facility | Credit Facility | Canadian dollar | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity of credit facility | $ 280,000,000 | |||
Revolver | Credit facility | Credit Facility | Australian dollar | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity of credit facility | $ 220,000,000 | |||
Revolver | Credit facility | Credit Facility | Financial Guarantee | ||||
Line of Credit Facility [Line Items] | ||||
Credit facilities | $ 74,700,000 | |||
Revolver | Credit facility | Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Standby fees percentage | 0.40% | |||
Revolver | Credit facility | Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Standby fees percentage | 0.70% |
Long-term debt - Convertible de
Long-term debt - Convertible debentures (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CAD ($) $ / shares | Dec. 31, 2022 CAD ($) | Jun. 01, 2021 CAD ($) | Jun. 01, 2021 $ / shares | Mar. 20, 2019 CAD ($) | Mar. 20, 2019 $ / shares | |
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 3,514 | $ 4,371 | ||||
Convertible debentures | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 129,750 | 129,750 | ||||
Redemption price as a percentage of the principal amount | 101% | |||||
Convertible debentures | 5.50% convertible debentures | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 74,750 | 74,750 | ||||
Interest rate | 5.50% | 5.50% | ||||
Conversion price (in CAD per share) | (per share) | $ 0.192 | $ 24.50 | ||||
Debt issuance costs | $ 3,531 | |||||
Redemption price as a percentage of the principal amount | 125% | |||||
Convertible debentures | 5.00% convertible debentures | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 55,000 | $ 55,000 | ||||
Interest rate | 5% | 5% | ||||
Conversion price (in CAD per share) | (per share) | $ 0.12 | $ 25.60 | ||||
Debt issuance costs | $ 2,691 |
Long-term debt - Equipment fina
Long-term debt - Equipment financing (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 52,851 | |
Equipment financing | 692,619 | $ 420,541 |
Equipment financing | ||
Debt Instrument [Line Items] | ||
Finance lease obligations | 52,851 | 41,804 |
Financing obligations | 162,266 | 32,889 |
Promissory notes | 5,349 | 11,238 |
Equipment financing | $ 220,466 | $ 85,931 |
Long-term debt - Additions and
Long-term debt - Additions and payments of equipment financing (Details) - Equipment financing - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Finance lease obligations, additions | $ 58,675 | $ 14,526 |
Finance lease obligations, payments | (48,601) | (27,443) |
Finance lease obligations, change in foreign exchange rates | 973 | |
Financing obligations, additions | 233,668 | 0 |
Financing obligations, payments | (110,306) | (15,056) |
Finance obligations, change in foreign exchange rates | 6,015 | |
Promissory notes, additions | 0 | 3,400 |
Promissory notes, payments | (5,889) | (5,372) |
Promissiory notes, change in foreign exchange rates | 0 | |
Total equipment financing, additions | 292,343 | 17,926 |
Total equipment financing, payments | (164,796) | $ (47,871) |
Change in foreign exchange rates | $ 6,988 |
Long-term debt - Equipment fi_2
Long-term debt - Equipment financing narrative (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Finance leases | $ 52,851 | $ 52,851 | |
MacKellar | |||
Debt Instrument [Line Items] | |||
Finance leases | $ 30,516 | ||
Financing obligations | 173,430 | ||
Finance lease obligations, payments | 18,509 | 18,509 | |
Financing obligations, payments | $ 73,657 | $ 73,657 | $ 73,657 |
Long-term debt - Financing obli
Long-term debt - Financing obligations (Details) - CAD ($) | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
MacKellar | ||||
Debt Instrument [Line Items] | ||||
Financing obligations | $ 173,430,000 | |||
Financing obligations, payments | $ 73,657,000 | $ 73,657,000 | $ 73,657,000 | |
Financing obligations | ||||
Debt Instrument [Line Items] | ||||
Debt instrument related obligations | $ 233,668,000 | $ 0 | ||
Financing obligations | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.72% | 6.72% | ||
Financing obligations | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.17% | 7.17% | ||
Financing obligations | MacKellar | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.99% | 1.99% | ||
Financing obligations | MacKellar | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 8.11% | 8.11% |
Long-term debt - Promissory not
Long-term debt - Promissory notes (Details) - Equipment Promissory Notes - Secured debt - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 0 | $ 3,400,000 |
Interest rate | 5.85% |
Long-term debt - Mortgage (Deta
Long-term debt - Mortgage (Details) - Mortgage | Dec. 31, 2023 |
Debt Instrument [Line Items] | |
Floating base rate | 5.60% |
Variance in floating base rate | 2.20% |
Debt instrument, interest rate, effective percentage | 3.40% |
Long-term debt - Deferred finan
Long-term debt - Deferred financing (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Cost | $ 6,336 | $ 6,336 |
Accumulated amortization | 2,822 | 1,965 |
Net Book Value | $ 3,514 | $ 4,371 |
Other long-term obligations - S
Other long-term obligations - Schedule of other long term obligations (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
DSU liabilities | $ 21,361 | $ 13,159 |
Long-term contract liabilities | 16,114 | 0 |
Other | 3,526 | 3,275 |
Other long term obligations | 134,357 | 18,576 |
MacKellar | ||
Business Acquisition [Line Items] | ||
Obligation related to acquisition | 93,356 | 0 |
DGI | ||
Business Acquisition [Line Items] | ||
Obligation related to acquisition | $ 0 | $ 2,142 |
Financial instruments and ris_3
Financial instruments and risk management - Financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Level 1 | Carrying Amount | Convertible debentures | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | $ 129,750 | $ 129,750 |
Level 1 | Fair Value | Convertible debentures | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 160,072 | 131,795 |
Level 2 | Carrying Amount | Financing obligations | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 162,266 | 32,889 |
Level 2 | Carrying Amount | Mortgage | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 28,429 | 29,231 |
Level 2 | Fair Value | Financing obligations | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 159,900 | 30,783 |
Level 2 | Fair Value | Mortgage | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | $ 22,780 | $ 24,329 |
Financial instruments and ris_4
Financial instruments and risk management - Contingent consideration, risk management, liquidity risk, market risk and credit risk (Details) | 12 Months Ended | |||
Oct. 05, 2022 $ / shares shares | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2023 $ / shares | |
Minimum | MacKellar [Member] | ||||
Concentration Risk [Line Items] | ||||
Increase (decrease) in forecasted net income at fair value of earn out liability | $ (7,970,000) | |||
Maximum | MacKellar [Member] | ||||
Concentration Risk [Line Items] | ||||
Increase (decrease) in forecasted net income at fair value of earn out liability | $ 7,970,000 | |||
Customer A | Revenues | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 27% | 21% | ||
Customer B | Revenues | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 23% | 31% | ||
Customer C | Revenues | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 20% | 24% | ||
Customer D | Revenues | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 9% | 14% | ||
Customer 1 | Accounts receivable and contract assets | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 22% | 0% | ||
Customer 2 | Accounts receivable and contract assets | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 16% | 32% | ||
Customer 3 | Accounts receivable and contract assets | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13% | 16% | ||
Customer 4 | Accounts receivable and contract assets | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 9% | 15% | ||
Customer 5 | Accounts receivable and contract assets | Major customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 2% | 11% | ||
Credit Facility | ||||
Concentration Risk [Line Items] | ||||
Outstanding balance, long-term debt | $ 317,500,000 | $ 180,000,000 | ||
Basis on variable rate, adjustment | 1% | |||
Corresponding change in annual interest expense | $ 3,200,000 | |||
Credit Facility | Credit facility | Revolver | ||||
Concentration Risk [Line Items] | ||||
Unused borrowing availability under the revolving facility | 129,300,000 | 88,000,000 | ||
Unused borrowing availability under finance lease obligations | 60,100,000 | 46,600,000 | ||
Interest Rate Swap | ||||
Concentration Risk [Line Items] | ||||
Realized gain | 6,612,000 | 0 | ||
Unrealized gain | $ 229,000 | $ 778,000 | ||
Conversion of stock, shares issued (in shares) | shares | 200,678 | |||
Common stock par value (in usd per share) | $ / shares | $ 14.38 | |||
Conversion of stock, additional shares issued (in shares) | shares | 458,400 | |||
Common stock, par value of additional shares (in usd per share) | $ / shares | $ 18.94 | |||
Common stock, fair value per share (in usd per share) | $ / shares | $ 27.65 |
Financial instruments and ris_5
Financial instruments and risk management - Schedule of reconciliation of level 3 recurring fair value measurements (Details) - Level 3 - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of the year | $ 3,862 | $ 4,669 |
Additions to level 3 | 114,096 | 0 |
Changes in fair value recognized in earnings | 4,681 | 292 |
Changes in foreign exchange rates | 3,587 | 0 |
Payments | (10,369) | (1,099) |
Balance, end of the year | $ 115,857 | $ 3,862 |
Financial instruments and ris_6
Financial instruments and risk management - Maximum credit exposure (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Trade accounts receivable | $ 65,386 | $ 39,625 |
Holdbacks | 363 | 372 |
Accrued trade receivables | 16,556 | 33,207 |
Contract receivables, included in accounts receivable | 82,305 | 73,204 |
Other receivables | 15,550 | 10,607 |
Total accounts receivable | 97,855 | 83,811 |
Contract assets | 35,027 | 15,802 |
Total | $ 132,882 | $ 99,613 |
Financial instruments and ris_7
Financial instruments and risk management - Trade receivables (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Not past due | $ 53,007,000 | $ 31,923,000 |
Past due 1-30 days | 8,790,000 | 6,190,000 |
Past due 31-60 days | 1,772,000 | 1,174,000 |
More than 61 days | 2,180,000 | 710,000 |
Total | 65,749,000 | 39,997,000 |
Allowance for doubtful accounts | $ 0 | $ 0 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment terms | 15 days | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment terms | 60 days |
Shares - Common shares (Details
Shares - Common shares (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, outstanding (in shares) | 26,420,821 | 28,458,115 |
Retired through share purchase programs (in shares) | (2,195,646) | |
Purchase of treasury shares (in shares) | (20,955) | (26,012) |
Settlement of certain equity classified stock-based compensation (in shares) | 337,229 | 184,364 |
Ending balance, outstanding (in shares) | 26,737,095 | 26,420,821 |
Shares to satisfy recipient tax withholding requirements (in shares) | 234,728,000 | 112,583,000 |
Satisfaction of recipient tax withholding | $ 5,479 | $ 1,591 |
Common shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, outstanding (in shares) | 27,827,282 | 30,022,928 |
Retired through share purchase programs (in shares) | (2,195,646) | |
Purchase of treasury shares (in shares) | 0 | 0 |
Settlement of certain equity classified stock-based compensation (in shares) | 0 | 0 |
Ending balance, outstanding (in shares) | 27,827,282 | 27,827,282 |
Treasury shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, outstanding (in shares) | (1,406,461) | (1,564,813) |
Retired through share purchase programs (in shares) | 0 | |
Purchase of treasury shares (in shares) | (20,955) | (26,012) |
Settlement of certain equity classified stock-based compensation (in shares) | 337,229 | 184,364 |
Ending balance, outstanding (in shares) | (1,090,187) | (1,406,461) |
Shares - Net income per share (
Shares - Net income per share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 01, 2021 | Mar. 20, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $ 63,141 | $ 67,372 | ||
Interest from convertible debentures (after tax) | 5,925 | 5,893 | ||
Diluted net income available to common shareholders | $ 69,066 | $ 73,265 | ||
Weighted average number of common shares (in shares) | 26,566,846 | 27,406,140 | ||
Weighted-average effect of dilutive securities | ||||
Dilutive effect of treasury shares (in shares) | 1,260,436 | 1,485,275 | ||
Weighted average number of diluted common shares (in shares) | 33,026,740 | 34,006,850 | ||
Basic net income per share (in CAD per share) | $ 2.38 | $ 2.46 | ||
Diluted net income per share (in CAD per share) | $ 2.09 | $ 2.15 | ||
5.00% convertible debentures | ||||
Weighted-average effect of dilutive securities | ||||
Dilutive effect of convertible debentures (in shares) | 2,148,438 | 2,095,236 | ||
5.50% convertible debentures | ||||
Weighted-average effect of dilutive securities | ||||
Dilutive effect of convertible debentures (in shares) | 3,051,020 | 3,020,199 | ||
Convertible Subordinated Debt | 5.00% convertible debentures | ||||
Weighted-average effect of dilutive securities | ||||
Interest rate | 5% | 5% | ||
Convertible Subordinated Debt | 5.50% convertible debentures | ||||
Weighted-average effect of dilutive securities | ||||
Interest rate | 5.50% | 5.50% |
Shares - Share purchase program
Shares - Share purchase program (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Apr. 09, 2021 | Dec. 31, 2022 | Apr. 11, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares purchased and subsequently cancelled during period (in shares) | 2,195,646 | ||
2022 NCIB | |||
Equity, Class of Treasury Stock [Line Items] | |||
Maximum number of shares to be purchased (in shares) | 2,113,054 | ||
Common shares | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares purchased and subsequently cancelled during period (in shares) | 2,195,646 | ||
Common shares | 2022 NCIB | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares purchased and subsequently cancelled during period (in shares) | 2,113,054 | ||
Increase (decrease) as a result of the retirement of shares | $ 16,824 | ||
Common shares | 2021 NCIB | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares purchased and subsequently cancelled during period (in shares) | 82,592 | ||
Increase (decrease) as a result of the retirement of shares | $ 665 | ||
Additional paid-in capital | 2022 NCIB | |||
Equity, Class of Treasury Stock [Line Items] | |||
Increase (decrease) as a result of the retirement of shares | $ 15,827 | ||
Additional paid-in capital | 2021 NCIB | |||
Equity, Class of Treasury Stock [Line Items] | |||
Increase (decrease) as a result of the retirement of shares | $ 816 |
Shares - Dividends (Details)
Shares - Dividends (Details) $ in Thousands | 3 Months Ended | |||||||||||||||
Dec. 31, 2023 $ / shares | Dec. 31, 2023 CAD ($) | Sep. 30, 2023 $ / shares | Sep. 30, 2023 CAD ($) | Jun. 30, 2023 $ / shares | Jun. 30, 2023 CAD ($) | Mar. 31, 2023 $ / shares | Mar. 31, 2023 CAD ($) | Dec. 31, 2022 $ / shares | Dec. 31, 2022 CAD ($) | Sep. 30, 2022 $ / shares | Sep. 30, 2022 CAD ($) | Jun. 30, 2022 $ / shares | Jun. 30, 2022 CAD ($) | Mar. 31, 2022 $ / shares | Mar. 31, 2022 CAD ($) | |
Equity [Abstract] | ||||||||||||||||
Per share (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | ||||||||
Total paid or payable | $ | $ 2,674 | $ 2,674 | $ 2,641 | $ 2,621 | $ 2,098 | $ 2,127 | $ 2,232 | $ 2,277 |
Segmented information - Results
Segmented information - Results by business segment (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 957,220 | $ 769,539 |
Depreciation expense | 131,319 | 119,268 |
Segment gross profits | 154,217 | 101,548 |
Segment assets | 1,546,478 | 979,513 |
Purchase of property, plant and equipment | 202,809 | 111,499 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 932,448 | 752,572 |
Segment gross profits | 154,217 | 101,548 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (8,271) | (26,903) |
Depreciation expense | 1,419 | 31 |
Segment gross profits | (2,543) | (2,554) |
Segment assets | (352,715) | (18,924) |
Purchase of property, plant and equipment | 0 | 0 |
Corporate And Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | 24,772 | 16,967 |
Heavy Equipment - Canada | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 760,590 | 700,863 |
Depreciation expense | 116,660 | 119,054 |
Segment gross profits | 104,167 | 81,754 |
Segment assets | 1,079,370 | 874,374 |
Purchase of property, plant and equipment | 146,442 | 111,295 |
Heavy Equipment - Canada | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,330 | 7,923 |
Heavy Equipment - Australia | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 153,877 | 30,693 |
Depreciation expense | 13,240 | 183 |
Segment gross profits | 40,607 | 6,721 |
Segment assets | 718,114 | 29,361 |
Purchase of property, plant and equipment | 56,367 | 204 |
Heavy Equipment - Australia | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,731 | 0 |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 17,981 | 21,016 |
Depreciation expense | 0 | 0 |
Segment gross profits | 11,986 | 15,627 |
Segment assets | 101,709 | 94,702 |
Purchase of property, plant and equipment | 0 | 0 |
Other | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 21,982 | $ 35,947 |
Segmented information - Schedul
Segmented information - Schedule of reconciliations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Gross profit | $ 154,217 | $ 101,548 |
General and administrative costs | 56,844 | 29,855 |
Loss on disposal of property, plant and equipment | 1,659 | 536 |
Equity earnings in affiliates and joint ventures | (25,815) | (37,053) |
Interest expense | 36,948 | 24,543 |
Change in fair value of contingent consideration | 8,268 | 0 |
Gain on derivative financial instruments | (6,063) | (778) |
Income before income taxes | 85,963 | 84,445 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 154,217 | 101,548 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
General and administrative costs | 56,844 | 29,855 |
Loss on disposal of property, plant and equipment | 1,659 | 536 |
Equity earnings in affiliates and joint ventures | (25,815) | (37,053) |
Interest expense | 36,948 | 24,543 |
Change in fair value of contingent consideration | 4,681 | 0 |
Gain on derivative financial instruments | $ (6,063) | $ (778) |
Segmented information - Sched_2
Segmented information - Schedule of revenue and long-lived assets, by geographical areas (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 957,220 | $ 769,539 |
Long-Lived Assets | 1,169,843 | 673,517 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Revenue | 795,472 | 733,328 |
Long-Lived Assets | 601,537 | 665,936 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Revenue | 151,789 | 24,187 |
Long-Lived Assets | 568,306 | 7,581 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 9,959 | $ 12,024 |
Cost of sales (Details)
Cost of sales (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | ||
Salaries, wages and benefits | $ 292,226 | $ 241,113 |
Repair parts and consumable supplies | 198,730 | 131,460 |
Subcontractor services | 100,572 | 91,666 |
Equipment and component sales | 46,084 | 41,302 |
Third-party equipment rentals | 18,727 | 22,964 |
Fuel | 8,410 | 12,963 |
Other | 6,935 | 7,255 |
Total | $ 671,684 | $ 548,723 |
Interest expense net (Details)
Interest expense net (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Interest Expense [Line Items] | ||
Amortization of deferred financing costs | $ 1,635 | $ 1,076 |
Interest expense | 35,777 | 23,733 |
Other interest expense, net | 1,171 | 810 |
Total interest expense, net | 36,948 | 24,543 |
Credit Facility | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 16,781 | 9,250 |
Convertible debentures | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 6,843 | 6,861 |
Equipment financing | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 5,046 | 3,344 |
Interest on customer supply chain financing | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | 4,493 | 2,196 |
Mortgage | ||
Schedule of Interest Expense [Line Items] | ||
Interest on long term debt | $ 979 | $ 1,006 |
Stock-based compensation - Stoc
Stock-based compensation - Stock-based compensation expenses (Details) - General and administrative expenses - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | $ 15,828 | $ 4,780 |
Restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 2,702 | 2,154 |
Performance restricted share unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | 2,677 | 2,522 |
Deferred stock unit plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expenses | $ 10,449 | $ 104 |
Stock-based compensation - Rest
Stock-based compensation - Restricted share unit plan (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Performance restricted share units (PSUs) | ||
Number of units | ||
Beginning balance (in shares) | 431,714 | 426,569 |
Granted (in shares) | 101,597 | 116,775 |
Vested (in shares) | (213,623) | (111,630) |
Ending balance (in shares) | 319,688 | 431,714 |
Weighted-average exercise price $ per share | ||
Outstanding, beginning of period (CAD per unit) | $ 12.47 | $ 12.06 |
Granted, Weighted average exercise price (CAD per unit) | 25.62 | 15.55 |
Vested, Weighted average exercise price (CAD per unit) | 8.48 | 14.13 |
Outstanding, end of period (CAD per unit) | $ 19.32 | $ 12.47 |
Vested (in shares) | 213,623 | 111,630 |
Liability classified restricted share unit plan | Restricted share units (RSUs) | ||
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 | |
Restricted share unit plan | Restricted share units (RSUs) | ||
Number of units | ||
Beginning balance (in shares) | 535,898 | 553,411 |
Granted (in shares) | 199,468 | 167,631 |
Vested (in shares) | (256,193) | (169,689) |
Forfeited (in shares) | (13,867) | (15,455) |
Ending balance (in shares) | 465,306 | 535,898 |
Weighted-average exercise price $ per share | ||
Outstanding, beginning of period (CAD per unit) | $ 14.44 | $ 13.55 |
Granted, Weighted average exercise price (CAD per unit) | 27.44 | 15.55 |
Vested, Weighted average exercise price (CAD per unit) | 8.77 | 14.13 |
Forfeited, Weighted average exercise price (CAD per unit) | 17.60 | 13.41 |
Outstanding, end of period (CAD per unit) | $ 23.04 | $ 14.44 |
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ 5,662 | $ 3,479 |
Period for award recognition | 1 year 7 months 6 days | 1 year 3 months 18 days |
Vested (in shares) | 256,193 | 169,689 |
Restricted share unit plan | Performance restricted share units (PSUs) | ||
Number of units | ||
Vested (in shares) | (213,623) | (111,630) |
Weighted-average exercise price $ per share | ||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ 3,655 | $ 3,251 |
Period for award recognition | 1 year 6 months | 1 year 3 months 18 days |
Vested (in shares) | 213,623 | 111,630 |
Stock-based compensation - Perf
Stock-based compensation - Performance and deferred stock unit plan (Details) | 12 Months Ended | |||
Jan. 01, 2021 | Dec. 31, 2023 CAD ($) $ / shares shares | Dec. 31, 2022 CAD ($) $ / shares shares | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Current portion of DSU liabilities | $ | $ 0 | $ 5,099,000 | ||
Performance restricted share units (PSUs) | ||||
Number of units | ||||
Beginning balance (in shares) | 431,714 | 426,569 | ||
Granted (in shares) | 101,597 | 116,775 | ||
Vested/redeemed (in shares) | (213,623) | (111,630) | ||
Ending balance (in shares) | 319,688 | 431,714 | ||
Weighted-average exercise price $ per share | ||||
Outstanding, beginning of period (CAD per unit) | $ / shares | $ 12.47 | $ 12.06 | ||
Granted, Weighted average exercise price (CAD per unit) | $ / shares | 25.62 | 15.55 | ||
Vested/redeemed, Weighted average exercise price (CAD per unit) | $ / shares | 8.48 | 14.13 | ||
Outstanding, end of period (CAD per unit) | $ / shares | $ 19.32 | $ 12.47 | ||
Vested (in shares) | 213,623 | 111,630 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | 4.21% | 3.14% | ||
Expected volatility | 38.90% | 48.70% | ||
Performance restricted share unit plan | Performance restricted share units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance restricted share unit plan granted to the services to be provided | 2 years | |||
Award vesting period | 3 years | |||
Restricted share unit plan | Performance restricted share units (PSUs) | ||||
Number of units | ||||
Vested/redeemed (in shares) | (213,623) | (111,630) | ||
Weighted-average exercise price $ per share | ||||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ | $ 3,655,000 | $ 3,251,000 | ||
Period for award recognition | 1 year 6 months | 1 year 3 months 18 days | ||
Vested (in shares) | 213,623 | 111,630 | ||
Settlement ratio, per PSU (in shares) | 1.48 | 1.14 | ||
Deferred stock unit plan | Deferred stock units (DSUs) | ||||
Number of units | ||||
Beginning balance (in shares) | 1,020,213 | 932,644 | ||
Granted (in shares) | 31,575 | 87,569 | ||
Vested/redeemed (in shares) | (286,152) | 0 | ||
Ending balance (in shares) | 765,636 | 1,020,213 | ||
Weighted-average exercise price $ per share | ||||
Total unrecognized compensation costs related to non-vested non-option share-based payment arrangements | $ | $ 0 | |||
Vested (in shares) | 286,152 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Required annual fixed remuneration in form of DSUs if shareholding guidelines are met, percentage | 60% | |||
Percentage of annual bonus eligible for deferred stock units | 50% | |||
Fair market value (CAD per share) | $ / shares | $ 27.90 | $ 17.90 | ||
Award units settled during the period | $ | $ 7,817,000 | $ 0 | ||
Deferred stock unit plan | Deferred stock units (DSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Required annual fixed remuneration in form of DSUs, percentage | 50% | |||
Required annual fixed remuneration in form of DSUs if shareholding guidelines are not met, percentage | 0% | |||
Deferred stock unit plan | Deferred stock units (DSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Required annual fixed remuneration in form of DSUs, percentage | 100% | |||
Required annual fixed remuneration in form of DSUs if shareholding guidelines are not met, percentage | 100% | |||
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 DSU liabilities | $ | 0 | 5,099,000 | ||
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 | $ | $ 21,361,000 | $ 13,159,000 |
Business acquisitions - Narrati
Business acquisitions - Narrative (Details) - CAD ($) | 3 Months Ended | 12 Months Ended | |||||
Oct. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
MacKellar | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Percentage of business acquired | 100% | ||||||
Total consideration transferred | $ 179,668,000 | ||||||
Financing obligations, payments | 73,657,000 | $ 73,657,000 | $ 73,657,000 | ||||
Finance lease obligations, payments | 18,509,000 | 18,509,000 | |||||
Accounts receivable | 65,033,000 | ||||||
Property, plant and equipment | 394,394,000 | ||||||
Revenue | $ 122,519,000 | ||||||
Revenue percentage | 12.80% | ||||||
Net income | $ 13,946,000 | ||||||
Net income percentage | 22.10% | ||||||
Acquisition related costs | 7,095,000 | ||||||
Total consideration transferred | 383,614,000 | ||||||
Assumed lease liabilities | 30,516,000 | ||||||
Cash consideration | $ 65,572,000 | ||||||
Deferred consideration related to acquisition | $ 0 | $ 20,070,000 | 20,070,000 | 20,070,000 | $ 0 | ||
MLN | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Percentage of business acquired | 100% | ||||||
Accounts receivable | $ 4,068,000 | ||||||
Property, plant and equipment | 9,562,000 | ||||||
Revenue | 5,224,000 | ||||||
Net income | 1,094,000 | ||||||
Acquisition related costs | 95,000 | ||||||
Total consideration transferred | 8,002,000 | ||||||
Property, plant and equipment and working capital | 13,723,000 | ||||||
Assumed lease liabilities | $ 5,721,000 | ||||||
Cash consideration | 3,000,000 | ||||||
Deferred consideration related to acquisition | $ 5,002,000 | $ 0 | $ 0 | 0 | $ 5,002,000 | ||
Deferred consideration paid | $ 5,002,000 |
Business acquisitions - Total c
Business acquisitions - Total consideration paid for MacKellar and the fair values of assets acquired and liabilities assumed at acquisition date (Details) - MacKellar $ in Thousands | Oct. 01, 2023 CAD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 65,572 |
Earn-out at estimated fair value | 79,839 |
Deferred consideration at estimated fair value | 27,014 |
Contingent payment at estimated fair value | 7,243 |
Total consideration transferred | 179,668 |
Equipment financing assumed | 203,946 |
Total consideration transferred | 383,614 |
Purchase price allocation to assets acquired and liabilities assumed: | |
Cash | 13,901 |
Accounts receivable | 65,033 |
Contract assets | 713 |
Inventories | 12,155 |
Prepaid expenses | 2,187 |
Property, plant and equipment | 394,394 |
Investments in affiliates and joint ventures | 85 |
Intangible assets | 690 |
Accounts payable | (45,829) |
Accrued liabilities | (22,464) |
Other long-term obligations | (16,934) |
Deferred tax liabilities | (20,317) |
Financing obligations | (173,430) |
Finance leases | (30,516) |
Total identifiable net assets at fair value | $ 179,668 |
Business acquisitions - Schedul
Business acquisitions - Schedule of unaudited pro forma information (Details) - MacKellar - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Revenue | $ 1,296,328 | $ 1,086,460 |
Net income | $ 89,658 | $ 78,261 |
Business acquisitions - Total_2
Business acquisitions - Total consideration paid for ML Northern and fair value of assets and liabilities (Details) - MLN $ in Thousands | Oct. 01, 2022 CAD ($) |
Purchase price allocation to assets acquired and liabilities assumed: | |
Cash | $ 795 |
Accounts receivable | 4,068 |
Prepaid expenses | 30 |
Property, plant and equipment | 9,562 |
Operating lease right-of-use asset | 131 |
Accounts payable | (48) |
Accrued liabilities | (599) |
Deferred tax liabilities | (216) |
Property, plant and equipment and working capital | 13,723 |
Finance lease liabilities | (5,595) |
Operating lease liabilities | (126) |
Lease liabilities | (5,721) |
Total identifiable net assets at fair value | $ 8,002 |
Other information - Supplementa
Other information - Supplemental cash flow information and net change in non-cash working capital (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid during the year for: | ||
Interest | $ 33,498 | $ 24,084 |
Income taxes | 1,370 | 0 |
Cash received during the year for: | ||
Interest | 446 | 177 |
Non-cash transactions: | ||
Addition of property, plant and equipment by means of finance leases | 28,159 | 8,931 |
Addition of property, plant and equipment by means of finance leases assumed through acquisition | 30,516 | 0 |
Increase in assets held for sale, offset by property, plant and equipment | 10,927 | 4,276 |
Non-cash working capital exclusions: | ||
Net increase in accounts receivable related to realized gain on derivative financial instruments | 4,015 | 0 |
Net decrease (increase) in accounts payable and accrued liabilities related to loans from affiliates and joint ventures | 2,113 | (13,500) |
Net decrease in accrued liabilities related to conversion of bonus compensation to deferred stock units | 0 | 639 |
Net increase in accrued liabilities related to the current portion of deferred stock unit liability | 0 | (5,099) |
Net increase in accrued liabilities related to the current portion of contingent consideration | (7,342) | 0 |
Net increase in accrued liabilities related to taxes payable | 367 | (362) |
Net increase in accrued liabilities related to dividend payable | (576) | (961) |
Non-cash working capital transactions related to acquisition of MacKellar and ML Northern | ||
Increase in accounts receivable | 65,033 | 4,068 |
Increase in contract assets | 713 | 0 |
Increase in inventory | 12,155 | 0 |
Increase in prepaid expenses | 2,187 | 30 |
Increase in accounts payable | (45,829) | (48) |
Increase in accrued liabilities | (22,464) | (599) |
Non-cash working capital movement from change in foreign exchange rates | ||
Increase in accounts receivable | 2,073 | 0 |
Increase in contract assets | 23 | 0 |
Increase in inventory | 387 | 0 |
Increase in prepaid expenses | 70 | 0 |
Increase in accounts payable | (1,727) | 0 |
Increase in accrued liabilities | (828) | 0 |
Operating activities: | ||
Accounts receivable | 57,077 | (10,956) |
Contract assets | (18,489) | (6,043) |
Inventories | (2,522) | (5,354) |
Contract costs | 0 | 2,673 |
Prepaid expenses and deposits | 6,379 | (3,453) |
Accounts payable | 9,585 | 12,750 |
Accrued liabilities | 372 | (989) |
Contract liabilities | (1,352) | (1,938) |
Net changes in non-cash working capital | 51,050 | (13,310) |
Net increase in accrued liabilities related to deferred consideration for acquisition of MacKellar | ||
Non-cash working capital exclusions: | ||
Net increase in accrued liabilities related to deferred consideration for acquisition | (13,439) | 0 |
Net increase in accrued liabilities related to deferred consideration for acquisition of ML Northern | ||
Non-cash working capital exclusions: | ||
Net increase in accrued liabilities related to deferred consideration for acquisition | $ 0 | $ (5,002) |